Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1926-11-23

Black satchel was part Of the con-
spiracy charged against the deferd-
ants
a. during the examination ~ 70
pective iurymen yesterday. tho ~
nlrr interior secretary and the oil
magnate, friends for many years and
once prospectors together ir the
West. sat near together and listened
tensely ~ every word spoken by
court and counsel.
Legal Steps Reviewed
Roberts reviewed the legal steps
which led 10 original establishment
wv the naval OH reserve. The net
OF 1920. he said specifically took
these reserves out Of the hands of
fhe Interior Department and placed
them under control Of the Navy. but
u rc-transfer was made by the exec
utive order Of May 2l. 1921. signed
by President Harding.
Secretary Fall had been in
charge of the reserves only short
time Roberts said. when ne ,sug
rested M Secretary DENLY (of the
Navy that ne could work out a plan
whereby royalty oil could he used
for storage Secretary DENLY ap-
proved that plan but later he wrote
letter saving there had been n1
drilling except of offset wells on The
edre ~ the California reserve.
Roberts then told the jury that
while nepntiations for the contracts
between Doheny and Fall were on
for the Pearl Harbor' storage con
tract. Fall discussed his financial af
fairs with Doheny and asked him fo-
100000
Shrouded IN Secrecy
"Dohenv caused his son - draw
100000 from his bank account in
bills Of large denominations and g
bring IL here 70 Fall. who gave his
demand note" cntinued the govern
ncnt attorney.
"The whole transaction was
shroudad i'm secrecy. Fall took the
money IN cash 70 ri Paso. where he
paid over most Of il 70 purchaso 2
ranch adjoining his own AZ Three
Rivers. Nm"
The expenditure Of this sum hn-
came known 10 the senate commit
tee. said Roberts. and Fall did not
tell the truth about IL. but tried IN
every wov 10 conceal il"
I'VE shall show that three other
companies declined 10 bid on the
storage tank contract because they
held IL to NJ illegal" he added.
Despite this and the opinion "
the solicitor of his own department
and Of the~legal officers of the De-
partment of Justice. Fall went ahead
with the execution OF the contr-ct- "
Roberts sought 20 impress upon
the jury that an important part WIT
this contract was a provision giving
nohenv'S American Petroleum
Company preference rirhts 20 future
leases M the naval oil lands in the
Elk Hill reserves.
Another Contract Made
"Tudpr that preferential right. "
Roberts said. Mr.. Doheny had riRhfs
over All others. In December. an
other contract was made. That con
tract was negotiated without AZ ad-
vertising or competition and under
III. the 10000 acres Of oil lands IN
southern California were lased to
Dohtnys company.
eve shall show you by the admis-
sion of Mr.. Doheny himself that ne
believed that contract a. be worth
100000. 900 in profits 10 his com
pany."
Upon all this evidence. he con-
\ tinued. the government will ask chs
Y jury w find that the 100000 nay-
/ ment from Doheny TO Fall const.tut-
\ "a corruption and that there has
! been conspiracy to defraud the
United States government.
Map Of Field Set Up
Before beginning his reply for ths
defense, Frank y. Hogan set 4 man vi
the Elk Hills field. showing othei
leases than those To DohpnN's com
pany rs well as oil wells which. i j.
claimed. have been draining the GOV
crnment field.
Hogan told the jury he would fiji
in many important facts which gov
leinment counsel had not regarded 4
necessary "a mention
After he descpibed machinery ol
government in handling oil matters
he turned TO description OF MI
clients.
Continued on page two.)