Evening star., 1926-12-04

! Governments interests fully pro-
tected
Mr.. Hogan produced Il communica-
ton of Doheny to Robson dated No
vember 6, 1922. Attached to it was the
outline Of supplemental proposal
which the Pan-American Co. offered:
Mr.. Doheny in his letter stressed
the oil situation in southern CAN
fornia, declaring that the develop
ments in the naval reserves had
served to increase production and
bring down the basic price of Oil from
$1.6O a barrel to 60 cents.
Larger Storage Facilities.
The supplemental proposal which
has figured heretofore during the
trial outlined additional storage faclll-
ties which the Pan-Amerlcan co.
proposed to erect at Pearl Harbor and
points on the Pacific and Atlantic
coasts in return for additional leases
of naval reserves in district No. :.
During the cross examination OF
Robson, the defense attorney brought
out that the chief of naval engineers
had told Mr.. Cotter of the Doheny
company u little later that Whllc
he was interested i'll the supple
mental offer the Pan American Com
more than it proposed to do at Pearl
Harbor in order to get additional
areas of naval oil reserves.
About that time, somewhere along
The middle Of November he recalled,
Robson received orders from the
chief Of operations to go ahead ana
increase the storage facilities at Pearl
IIarbor from 100000 barrels to
| 3. 100000 barrels. This order was
sanctioned by Secretary DENLY, ana
he took up the matter with the bu-
reau of Yards and Docks.
Mr.. Hogan brought out that to the
best of Robison's recollection Secre-
tary Fall was absent from Washing
ton from early in September until
late in November, 1922, Robson said
that he continuously informed DENLY
| of progress in connection with the
proposed plans in Pearl Harbor.
After emphasizing that he was a
CAPTAIN and not an admiral.
Robson detailed the origin of his
| acuuaintanceship with the Dohenys,
which, lie said, occurred during the
war when he mustered young Doheny
| into service as lieutenant on the
| u. S. S. Huntington which he then
commanded. Since that time he had
met the senior Doheny several times
and, the witness said, the relationship
| between the two families could be
described as "friendly."
! Robson became chief of the Bureau
of Engineering, october l., 1921, which
detail carried with it the rank of rear
admiral. Six days later he wrote to
Doheny telling him Of his good fortune
and received congratulatory COM
munication in reply. Up until that
| time he had no duties with respect
| to oil leases, he testified to Mr..
Hogan's questions.
Then on the 10th of that month.
| DENLY placed him in charge of duties
previously carried out by the fuel
officer. and he automatically became
| the Secretary of the Navy's repre-
sentative in charge of fuel oil. Toward
| the close of that month a conference
was held in Falls office to discuss the
proper methods of reducing the loss
of Government oil in the petroleum
reserves. "Bain and Ambrose" he
said, advised that wess bordering the
private ones be drilled, to prevent
! further drainage"
Plan to Exchange Oil.
The witness recalled the stand he
took for the Navy, declaring that his
service had gotten nothing up to that
time. although the Oil had been sold
for money and was being turned into
the Treasury. He also recalled having
told Fall that there was plan in the
Navy Department for exchanging
crude oil for fuel oil, and that a wiser
way to acquire it would be to store
it."
After negotiations for the storage
of the oil had begun Admiral Latimer
produced an opinion on the legality of
the proposed contract. and Secretary
| DENLY said that seems to settle the
matter" the witness said. Then the
Pearl Harbor storage proposal was
taken to DENLY for action.
II don't recall what 1 said to him, y
said Robson, but it was followed by
remark that he wished me to go
ahead with the project" Hogan in
sisted on what Robson had said, but
the witness repeatedly said he did not
recall Then he was asked if Admiral
Latimer, DENLY and himself had re-
ferred to the naval problems involved
in the project, to which the witness
replied they had.
What did you say?" asked Hogan.
| 'T don't remember what said"
There followed seyexal questions