Evening star., 1926-12-11
Continued from First Page.)

the noted singer replied, mo man
has a higher reputation"
What is his reputation for patriot.
ISM"
1T is so high that I hope when
live to become his age I shall have
the same kind Of reputation"
Defense Then Rests.
This concluded the witness >exami-
the court he had several more wit.
nesses from Los Angeles, but he
would not put them on. Upon receiv-
ing approval from Justice Hoehling he
announced. 1--WE rest"
Mr.. Lambert then arose and said.
I'VE also rest"
This was at 9:45 o'clock.
Mr.. Roberts then began his re-
buttal by Offering a letter written by
the then Rear Admiral J. K. Robson
to Representative Kelly of Pennsyl-
vania. Hogan objected on the ground
that it does not "rebut anything"
After a conference at the bench JUS
tice Hoehling advised Mr.. Roberts to
first one he offered.
Justice Hoehling upheld Mr..
Hogans contention that If the Robi-
son letter to Representative Kelly
be produced the Government also
should present other letters in rela-
ton to the same subject in its re-
buttal.
Letters then were presented by
Roberts from Admiral Robson in
reply to communications from Rep
resentative Sinnott Of New Jersey
and Senator Harreld Of Oklahoma
requesting information regarding
prospective leasing in the naval re-
serves, withdrawal and disposition Of
lands. production, etc.
Contents of Letters.
The letter to Kelly presented in
full the Navy's oil policy early in
1922 before the actual contract of
April 25 with the Doheny company.
To Mr.. Sinnot, Robson replied on
April 10, 1929, that owing to the trans.
fer of oil administration to the Interior
Department he would be unable to
give him any satisfactory information
regarding his general request.
On April 20, 1922, Secretary OF the
Navy DENLY, replied to a communica-
ton received April II from Senator
Harreld. who had requested informa.
ton regarding leases in the Elk Hills
Secretary conveyed to him was that
between March 4, 1921, and May 81,
1921, two leases had been made to
the Consolidated and the Buena Vista
Companies in reserve No. 2.
Mr.. Roberts then produced in re-
buttal a memorandum Of the Pan
American Company prepared in No
vember, 1922, just prior to the Decem-
ber IL lease and contract. The memo
randum. which figured earlier in the
trial, contained the proposal OF the
Pan-America Co. with regard to oil
royalties and Pearl Harbor construc-
ton and cited the alarming situation
in the oil industry in southern Cali.
fornia due to oversupply. The basic
price of oil having been reduced from
SLIGO a barrel to SO cents, the memo
randum pointed out that the situation
could be righted only by storing sur
plus oil, which would arrest the down.
ward trend of prices.
Terms In Memorandum.
1t was this memorandum which
contained the original proposal of the
Doheny Co. for a 10-year period af-
fecting royalty oil from the reserves,
a period which was extended to 10
years when the lease eventually was
executed. 1t proposed also giving the
Pan-American Co. preferential right
to future leases in the reserves in re-
turn for which the company would
provide fuel oil storage and sell to
the Government petroleum products
at 10 per cent below the market price.
John May. a stenographer at the
Navy Department, was put on the
stand by Roberts to identify minutes
of the sessions held by the naval
council during October and Novem.
Der. 1921, when the subject of fuel
oil and lease was brought up at va
rious times.
The first record of minutes was
for the meeting of October Is, 1921,
at which DENLY presided and told
the council Of the determination to
lease and develop the Oil reserves.
The notes referred to the leasing as
"a most difficult and dangerous busi'
ness"
The stenographic report read by
Mr.. Roberts quoted discussions by
Secretary DENLY with heads of bu-
reaus in the Navy, who composed the
Navy Council. Mr.. DENLY was quoted
as saying THAT matter Of leasing
is a dangerous thing. 1t is full OF