Evening star., 1926-10-05
DOHENY OIL PLEA
STILL Up IN COURT
Argument Continues Before
Highest Tribunal Affecting
Leases and Tanks.
By the Associated Press.

By the Associated Press.
Argument by which Edward l..
Doheny seeks to validate his disputed
lease to the Elk Hills naval oil re
serve In California and his contracts
for the construction of storage tanks
at Pearl Harbor, Hawaii, continued
today before the Supreme Court.
Frederick r. Kellogg was granted
an hour by the court to complete the
Doheny argument which was begun
yesterday at the opening OF the FAN
term by Frank J. Hogan, Leading
counsel for the oil operator. FOLLOW
ing conclusion of Kellogg's statement,
Owen Roberts and former Senator
Atlee Pomerene, special government
counsel, were granted one hour eacn
in which to present their arguments
for cancellation Of the lease on the
grounds Of fraud.
Cites Act of 1920.
In his argument yesterday MI
Hogan held the act Of 1920 gave the
Secretary Of the Navy full discretion
in determining use of the OIL In the
reserves; that former Secretary or the
NAVY DENLY himself determined to
exercise this authority upon the rec
Communication of Admiral j. *. Robin
son. in charge Of the reserves, and de-
etded TO take the oil out of the
ground. where IL was being drained
by neighboring privately operated
wells, and place it in storage tanks
FOR future use Of the Navy IN emer-
gencies.
The Doheny counsel also held the
Secretary acted after being assured
by the Judge advocate general OF the
Navy of his right to do so, and that
the loan Of 100000 by Doheny to Al
bert 3. Fall, about year before the
contracts and leases were made, dld
not constitute bribe.
Hogan contended evidence by the
Government in the trial court failed
to show any connection whatever be-
tween the contract and the loan, made
between old friends who have slept
out under the stars together, upon
promissory note. 1t was not Gus
tomary in case of bribe giving, he
said, to take promissory notes. and he
further held the policy of taking the
oil from the reserves had originated
in and been developed at the Navy
Department.
Fall Activity Denied.
He insisted that while Fall. most
of the time absent at his nome az
Three Rivers, n Mex, was consulted
ment OF the policy. that he had no
active part in framing or promoting
IL. There was abundant evidence to
show, he added, that DENLY had not
been an "imbecile," as the District
Court at Cheyenne stated in the Sin
clair case, he must have been If 1t
were true he did not know what was
being done.
Hogan argued DENLY had main
tained close and careful scrutiny and
supervision in the development of the
policy advocated by Admiral Robin
son, who was described by Govern
ment counsel, he stated, as being a
super-enthusiast. Robinson's earnest
advocacy Of the storage Of the naval
oil was attributed by Hogan to his
zeal in looking after the welfare of
the Navy.
Prosecution of the cases was at
tributed by Hogan to a wave of
hysteria which swept over the coun-
try prior to the 1920 presidential cam
paign.
I'VE are told that Fail and Doheny
secretly entered into a conspiracy"
he exclaimed, "in which it was agreed
that Fall would deliver the contracts
and leases UPON the promise that he
would receive as bribe 800 900"
r6u 6lmply COUSutteu.
Hogan contended the action by the
Interior Department did not exceed
the cooperation which 1t should give
in view of its better equipment to
handle affairs relating to land mat.
ters, and that by direction of DENLY
competition had been sought, and bids
had been invited and received. before
the offer Of Doheny, one OF the three
bidders, had been selected. He in.
sisted that Fall had merely been con-
suited by direction OF DENLY over the
acceptance Of the bid, and had ap-
proved Denby's decision.
The long dispute, which began as
the result Of a Senate investigation
and passed through the lower Federal
courts, found a full court in attend.
Rnce yesterday. but Associate Justice
Stone withdrew from the deliberations
because he had considered phases
OF the case while he was Attorney
General.