Evening star., 1926-12-02
Falls Letter About 100000
Loan and Doheny Profits
Called Telling Blows.
WALSH AGAIN TESTIFIES,
BUT DIsAPP0INTS CROWD
Lambert Tells Jury Defendant ex-
Secretary Had Only Welfare of
United States at Heart.

After dealing what was regarded as
two telling blows against the defense,
Owen J. Roberts, chief counsel for the
prosecution, in the oil conspiracy case
against Albert B. Fall, former Secre-
tary of Interior, and Edward l.. Do
heny, oilA magnate of Los Angeles,
Calf. on trial before Justice Hoehling
and a Jury in Criminal Division Of
District Supreme Court, announced
the close of the Governments case
at $50 o'clock this morning.
| Roberts read to the jury letter
| from Fall to Senator Thomas j.
Walsh of Montana, prosecutor in the
Senate oil investigation, in which
! Fall declared that he had not obtain
ed the famous 100000 from Harry F.
| Sinclair or any one else connected with
| the Teapot Dome issue, or with any
other oil concession.
The prosecutor. with permission of
| the court and over the objection of
| Attorney Frank J. Hogan for the de
| fense, declared to the jury that the
| Pan-American Co., a Doheny corpora
/ ton, by the resale of oil secured un-
der the two contracts obtained from
| Fall. made a profit of Is cents per
, barrel, or total of $791 ,012.03.
Walsh Not Cross. Examined.
Senator Walsh was the last wit
ness for the prosecution. He said he
had been unable to find the letter
which he had received from Fall, but
that he had read from the letter when
giving it's contents to. the Senate
committee. Mr.. Roberts then read
the text of the letter. and Senator
Walsh was excused. He was twice
on the witness stand during the trial
and twice were the spectators disap-
pointed that he did not enter into a
discussion of the oil situation.
The defense made no motion for an
instructed verdict, but Immediately
following the close of the Govern
ment's case, Attorney Wilton J. Lam
bert outlined the defense of Fall to
the jury Mr. Lambert said he might
we'll rest the case with the statement
made at the opening of the trial by
the gentleman from the keystone
State (Mr Roberts) and the full and
complete presentation of the defense
as given by my brilliant associate,
MIR. Hogan" but he felt the jury
should be given all possible light on
the matter
You have heard records and seen
prominent officials on the witness
stand" said Mr.. Lambert, but we
will also present records which will
clarity the situation and will bring
Government officials to give evidence
just as conclusive. You will, hear
Admiral Robson, Director Balm and
others
Falls Policy Described.
Fall had only one policy from the
time he took office, Lambert said the
defense would show, and that policy
runs like thread of gold throughout
his administration
His policy was to retain Govern
ment oils in the ground and not to
make leases. counsel said, except
where absolutely necessary as shown
to him by experts to protect the Gov
ernment property from drainage by
other corporations. This policy was
changed in November, 1922. when the
Secretary of the Navy Lambert said,
wrote to Fall the famous letter which
changed the whole aspect Of the oil
situation and which was considered
by Fall to be a direction to him to
proceed with a policy which Crsytal-
lized in the contract of December IL,
1922.
Lambert said he would show that
Fall was out OF the city during the
greater part of October preceding
the contract and did not return until
two days before the receipt of the
letter from Secretary DENLY, and that
all negotiations were conducted by
Assistant Secretary Finney, as ad-
mitted by the latter when on the stand
as a Government witness.
Offers Character Witnesses.
Two character witnesses were the
first introduced by Attorney Hogan on
behalf of Doheny. One declared the
oil magnate to be "the foremost pa
triot Of Los Angeles and the other
described him as a man known to
everybody in the city, whose repu-
tation for honesty, integrity and
patriotism was of the highest" The
witnesses are next door neighbors of
the oil man and have known him
intimately for many years, they said.
They were Carl Leonard, president
of the Southern Portland Cement
Co. of Los Angeles, and his son-in law
Frank j. Powell, vice president and
secretary of the same corporation.
DIR. H. Foster Balm, former director
of the Bureau of Mines, now secre-
tary of the American Institute of
Mining and Metallurgical Engineers,
was next called. He first learned of
the Pearl Harbor contract and leases
at a conference in Falls Office in
October, 1921, which was attended by
Fall and Admiral Robson. U. S. n.
There the possibilities of exchanging
crude oil from the naval reserves
for fuel oil for the use Of the Navy
was urged by Admiral Robson, he
said, who pointed out that the Navy
had up to that time received nothing
from the reserves and Robson want
ed to get something out of them, if
possible.
Balm was then instructed, he said
to discuss with Pacific Coast lessees
plans for storing some of the Navy
ROYALTY oil. He was assisted, he said
by facts and figures which Doheny
had either volunteered or had been
asked to give by Fall. The next step
in the project. according to the wit
ness, was the receipt by him of
letter dated December 9, 1921. from
Assistant Secretary Roosevelt ad-
dressed to Fall, which inclosed numer-
Gus plans and specifications for the
building Of storage tanks at Pearl
Harbor and which letter concluded
with this statement: I'm view of the
fact that this project is part of the
war plans of the Navy Department,
Continued on Page 4, Column 81.