Evening star., 1926-12-02


a little black safe in the proceed
ings to rival the little black bag
incident.
DR.. Bain then was called to the
stand and testified that the first in
stance Of his becoming connected with
the oil lease and tank construction
negotiations was in the latter part OF
October, 1921, when he attended the
conference at which Fall, Admiral
Robinson and A. w. Ambrose. petro-
leum technologist of the bureau, were
present.
After this conference the witness
said he received instructions to ask
several pipeline companies holding
leases on the reserves to exchange
crude oil for fuel oil and hold this IN
storage for the Navy for the remain
ing two months of that year. He also
was charged with finding out If these
compa MES would be willing to extend
this storage to the first six months of
the ensuing year as the Government
had no fuel oil in storage. An ar
rangement to this effect finally was
entered into, Balm testified.
DR.. Balm also had been requested by
Fail to work out facts and figures on
the storage question, and the Secre-
tary of the Interior handed him let
ter from DOheny which, Fail explained,
contained the information on the cost
Of preserving one and one-half million
barrels of oil for the Navy. Fall told
me he had asked Doheny or Doheny
had volunteered to have his engineer
work out the estimate" Dr.. Balm de-
clared. He then was told 20 take the
matter up with Admiral Robinson.
Letter From Roosevelt.
When Fall left for New Mexico,
December I, he had no definite in
structions to go ahead on the project,
DR.. Balm declared. Then on Decem-
ber he received the letter which
Acting Secretary Roosevelt had
written to Fall inclosing plans and
specifications for tanks at Pearl
Harbor and recommending they be
kept "as confidentially as possible
Acting Secretary Finney of the In
terror Department on December 10
or the next day replied to this letter
that the Bureau of Mines would con-
tinue to work on the Pearl Harbor
tanks and also acknowledged a tele-
phone message from Admiral Robson
that the Navy Department solicitor
had given an opinion on the legality
of exchanging crude oil for fuel oil
and storing it in the tanks. F'inney,
however. requested that this infor-
nation about the opinion be placed
in writing. Mr.. Hogan had read to
the jury these two letters and he
asked the witness if he had collabo-
rated with Finney's communication.
II not only collaborated," replied
DR.. Balm. "but l pointed out to F'inney
the necessity of the letter.
Mr. Hogan then offered In evidence
a letter dated December IA, 1921, from
Secretary DENLY to Secretary Fall in
which the Navy head said he desired
that the Interior Department handle
the oil exchange matter. The letter
quoted the Navy judge advocate gen.
erals opinion on the legality of enter
ing into the contract. Secretary DENLY
added it was his desire that the In
terror Department proceed "as soon
as possible" and make the contract
for the Pearl Harbor tanks. This
letter added that plans and specifica
tions for other tanks on the Atlantic
and Pacific coasts would be forwarded
later; that Admiral Robson had been
designated to handle all naval reserve
questions and that he would like to
receive a monthly report on the prog
ress of the project.
Activities of Balm.
Mr.. Hogan inquired at length into
the activities Of Balm during Decem-
ber, 1921, at which time Fall was
absent from Washington. Balm said
that he held conferences with Admiral
Robson, and had attempted to carry
out the Navy's wishes in respect to
the proposed work at Pearl Harbor.
He said he also saw Mr.. Finney in
1D
pense Of the project and that it was
decided for him to see J. !. Cotter of
the Doheny company for the purpose
of obtaining more details.
On December 10, he said. Admiral
Robson had forwarded to Mr.. Finney
four sets of blue prints with respect
to the Pearl Harbor project and that
additional sets were sent during the
month.
Balm said he had first met Mr.. Cot
ter when the latter was private secre-
tary to Franklin K. Lane, then Secre-
tary of the Interior
He next related trip to New York
to get in touch with Gano Dunn, pres.
ident Of the j. G. White Engineering
Co., in connection with the Pearl Har.
Dor work. Since the project was a
part of the Navy's war plan, he told
Mr.. Dunn that the matter must be
kept as confidential as possible. He
said he gave Dunn set of the plans
and asked him to submit an estimate.
Dunn replied that his company would
be interested in making a bid and
that he would take it up with his as.
sociates. HE surprised me by saying
his company would be able to make
a proposal covering the exchange of
oil" said Dr. Balm
Shortly after this interview the di-
rector said he had seen Mr.. Cotter in
his office and had told him substan-
TALLY the same thing he had told Mr..
Dunn. He left also copies of blue
prints.
Reported to Robson.
After these interviews Balm said he
reported to Admiral Robson and told
him he was going West to see about
interesting various oil companies in
the project. Cotter, he said, was leav-
ing with him. Balm said he also con-
suited with Admiral Gregory, chief
of yards and docks, and others.
Before leaving he said he talked
over with Mr.. Finney the various oil
officials whom he would approach out
West. These he said were the Off
cials of the Standard Oil Co. of Cali
fornia, the General Petroleum Co., the
Pacific Oil Co., the Union Oil Co., the
Associated Oil Co. and the Pan-Amer-
lean Co.
Mr.. Hogan asked him If Cotter ac-
"ompanied him on the Western trip.
Mr.. Cotter went with me as far
as Three Rivers, Mexico" replied
Balm.
did he stop over at Three Rivers?
asked Mr.. Hogan.
mo, he did not" replied the wit