Evening star., 1926-11-23

ment for the ranch in currency and
that this settlement then became
known,
Calls Fall Untruthful.
But Secretary Fall did not tell the
truth about it then" added Roberts.
"He tried In every way to conceal 1t
but the facts came out"
Shortly after that he said Fall be-
gan putting his plan into concrete
sorm.
Mr.. Roberts declared that when the
Doheny proposal to construct oil
tanks in Hawaii was advanced. sew
eral other oil companies We're asked
about t and said il was Illegal. Never
theiess. Mr.. Fan did not take the
opinion OF his own solicitor or of
the Department of Justice, counsel
said, adding that the Associated OIL
Co. had stated it would undertake the
contract ii Congress approved by a
special act.
Then, Mr. Roberts continued, the
Pan-American Co. submitted an al
tentative bid which showed it would
do the work for S235,000 less Govern
ment Oil, IL the company received the
preferential rights to all leases here
after granted on the No. l reserve.
MIR. Fail was in New Mexico at the
tine and approved the bid. After the
award was made MIR. Cotter, counsel
for the oil company, said his con-
Germ wanted a declaration from the
Government that it would get some
oil leases within one year and, Mr..
Roberts added, the Interior Depart
ment granted the request.
In a month the oil company ap-
piled for lease on the reserves. Work
on the Hawaiian oil tanks was started
and another contract to build more
storage tanks in other parts of the
country, in return for which the Pan
American concern would receive
leases with certain fixed royalties on
the whole OF number l reserve was
made, Mr.. Roberts said.
Sees $IOO, O,OOO, 900 Profits.
This, he declared, was without COM
petitive bidding or advertising, and
many other oil companies would
have been interested in the PROPOSE
ton. In fact. he emphasized, these
companies were told no such policy
was in existence.
This latest contract meant $780,
100000 in profits to Doheny's COM
pany," Mr.. Roberts emphasized.
Because of the overproduction Of oil
in 1922 the Pan-American Co. asked
Fall to shut down production on Gov
ernment leases and Fall did this,
counsel continued. Then when Do
heny got the lease on No. he did not
start work Immediately, owing to a
crowded market.
This work of granting the leases" 4"
Mr.. Roberts told the jury, was not
done in a routine matter at the de.
partment. MIR. Fall wrote memoranda
to various employees, stating that no
information was available about tho
contracts.
AS to reservation No. 2, immediate.
ly below No. 1. in California, many
leases had been granted, and perfectly
proper, to save the oil, the counsel
continued, adding that these leases
brought vastly more from the stand
point of royalties than Doheny paid
Mr.. Roberts concluded his statement
by emphasizing three allegations as
follows:
Il. The payment of 100000 to
Fall by Doheny, the secrecy attached
to it and the untruth Fall told, indi-
Gates corrupt agreement between
them.
'2. The corrupt agreement involved
Doheny's getting leases of enormous
value.
"3. They were granted without
competitive bidding and the contract
to construct the oil tanks was a ve-
hicle for getting the leases. Those
violate the Constitution and the laws
Of Congress-"
Mr.. Roberts added his opinion that
the jury, after hearing the Govern
ment's case, would say, the United
States has been deprived of its rights.
Mr.. Roberts sat down at 1890
o'clock and Mr. Hogan Immediately
prepared to deliver his opening state
ment on behalf Of Doheny. He first
had placed upon blackboard in full
view of the jury a checkered, colored
chart resembling a crossword puzzle.
Then he began his statement with the
declaration that he intended to "fill
In many vital important gaps that
Government. counsel thought unneces-
sary to mention"
There are only two men under in
dictment here" he continued, mot
Department or the Navy Department
only two men, and they are charged
with conspiracy to defraud the Gov.
ernment."
He then asked the jury to keep in
mind one or two names which he
cited as being Capt. John K. Rob-
ison, United States Navy; Judge Fin
ney, Assistant Secretary Of the In
terror, under Fall; DIR. H. Foster
Balm, director of the Bureau Of Mines,
and A. w. Ambrose. chief petroleum
technologist Of the bureau.
II want you to keep in mind" he
said, that none of these are under
any charges whatever"
''As to the men under indictment.
one man is II years old, who has lived
a private life and the other man is
65, who has devoted the best part of
his life to public service. Edward L..
Doheny is the first man. He was
born in Wisconsin and went West at
an early age. Sometimes he met with
degrees Of success, and more often
failure" Mr. Hogan then gave brief