The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-12-18

after hearing the same evidence that constituted
the basis of the trial just ended, ordered the naval
oil leases given by Fall to Doheny cancelled "be-
cause of fraud"
In making that decision he said:
"The plaintiff (the GOVERNMENT is entitled to
cancellation and annulment of each of the con-
tracts. and leases in controversy by reason of the
fraud and conspiracy of Secretary Fall and Mr..
Doheny,-a as alleged in the amended bill of com
plant, and also because each Of said contracts and
leases Is void on account Of the illegal and invalid
transfer of power; if it were not for the fraudulent
conspiracy Of Secretary Fall and Mr.. Doheny and
the unlawful delegation of power in the agreements,
the contracts and leases in the suit would be
authorized"
The court found that "the payment of $1,000
by Edward l.. Doheny to Albert B. Fall under the
circumstances was contra bonos mores against
good morals) and contrary to public policy" and
that the making of such payment constituted a
fraud upon the United States of America and
renders voidable all contracts and transactions made
between the Pan-American Petroleum Company and
the United States subsequently thereto"
Declaring he could not possibly conclude that
100000 deal between Fall and Doheny was a per
sonal transaction between two old friends and
without connection with the leases and contracts,
Judge Mccormick described the circumstances as
ineffaceable and unexplained. The giving and &C
ceptance of the money he called the central, in
surmountable and decisive fact in the case.
Concluding, he labeled the transaction "a colossal
infamy, regardless of whether 1t was a bride, a gift
or a loan"
Judge McCormick's opinion was sustained in
every respect by the Federal Circuit Court of APP
peals for the Ninth District. The Supreme Court
has not yet ruled on It.
A new chapter in the oil lease litigation begins
Friday. On that day Fall and Harry f. Sinclair,
another multimillionaire oil man, Will appear before
another judge of the District Supreme Court to
plead to charges of conspiracy to defraud the Gov
eminent in leasing the Teapot Dome naval reserve.
Government counsel, Owen J. Roberts and Atlee
Pomerene-who, despite defeat, conducted the prose
cution ably in the FallDoheny case-win likewise
prosecute Fall and Sinclair.
The Teapot Dome case win be more dramatic in
some ways than the one just ended. It's details were
the first to be learned by the Senate three years
ago. Instead of 100000, it involved s2SO,5OO which
Fall is said to have received from Sinclairs oil
companies.
AS part Of its case the Government will try to
bring back from Paris the two oil men who left this
country when the Senate started to investigate
the Teapot Dome transaction. They are H. M.
Blackmer, former president of the Midwest Refining
Company, and J. E. ONeil, who was president of the
Prairie Oil and Gas Company. q.
Since the civil case involving this lease was
tried in Cheyenne, Congress has passed a law ex-
tending the power of the Government to bring these
men to testify.
They, with three others, including Sinclair, are
accused of having formed a dummy corporation to
skim profits from oil resales and distribute the
profits in the form of Liberty Bonds. Fall is &C
cused of having received some of these bonds.