Evening star., 1926-11-23

ring to the time he event broke" at
the age Of 40, and then regained his
fortune.
Fall Met DoI,eny Years Ago.
Mr.. FALL the other man. Mr.. Hogan
continued, came into contact with his
client in the West, and their paths
crossed frequently. Sketching Mr..
Falls career briefly, the attorney de-
c!ared: while Fall was in the SEN
ate he showed himself to be one Of the
great International experts on Mexi-
can affairs. Doheny had his interests
wrapped up in Mexico. Fall rendered
a great favor to the people OF the
United States, including Mr.. Doheny.
when our citizens rights were in dan
ger" When Mr.. Fall retired from
the Senate to become Secretary of the
Interior, both he and Mr.. Doheny had
apartments in the Wardman Park
Hotel. Mr.. Doheny's residence here
for y time was occasioned by his In
terest in Mexico. Mr.. Hogan ex-
planned.
Secrecy Is Denied.
Hogan stressed throughout his
statement that Fall in making the
leases and contracts had acted en-
tirely in the open at the request and
direction OF the Navy Department,
without any Of the secrecy alleged by
the Government. The entire transac-
ton, he claimed was fully in accord
ance with the law.
The attorney pointed out that the
early policy. from 1908 to 1920. when
none of the oil was taken out, was
due solely to the fact that Congress
had enacted no law whereby the Gov
ernment could even put down well.
much less dispose OF its oil.
Due to this situation, he pointed
out. the Standard and Pacific Cos.
had drilled offset wells and had taken
from the Government reserves 49,
600 900 barrels of oil before the Gov
ernment itself had even gotten one
barrel The act Of June 4, 1920, he
pointed out, directed the Navy De-
partment not only to conserve oil for
the use of the Navy. but at its dis
cretion to operate wells, sell, and ex-
change it's oil.
In March, 1920, when DENLY took
Office. Hogan said the Secretary's at
tention was called to what was going
on at the reserves.
while the Navy Department was
slee eping," he said, "the Standard and
Pacific Cos. were putting down Offset
wells, drawing three to five thousand
barrels a day. This was the situa-
ton before the Government had put
down a single solitary we'll"
Upon this realization, Mr.. Hogan
said. DENLY called for bids for the
drilling of % wells on a 900-foot strip
in reserve No. /, known as the Elk
Hills reserve. The Interior Depart
ment had nothing whatsoever to do
with that, Mr.. Hogan argued, but
when the bids were received it was
found that the United Midway Co. had
a quit claim on some Of the land. I'm
der the law this claim would have to
be disposed Of before lease could be
made.
Hogan declared that DENLY realized
the Navy would either have to organ.
ize a petroleum section for which it
had no medium available or would
have to enlist the assistance Of the
Interior Department, which had all
such resources at it's demand.
DENLY then took the matter up with
the late President Harding, and asked
him to issue an order under which the
Secretary of the Interior could carry
out the policy desired.
1t was the Navy Departments off,
cials, not Fall, who recommended that
the lease be given to the Pan-Amer!.
can Co. as the best offer under the bids
received. Mr.. Hogan stated. In view
Of the quit claim Of the Midway Co..
he said, 1t was proposed that Fall
should secure the surrender Of its
claim.
Terms of Settlement.
This, he declared, Secretary Fall
did, and secured for the benefit Of the
Midway Co. enough land from the
Pan-American Co. for the Midway to
drill eight wells, despite the fact that
the offer of the Doheny company had
been accepted in open competition.
BY this settlement, approved by the
President. he declared, the two leases
were made by which the Government
received 225, 900 barrels a day.
Reviewing the change Of policy
under which Admiral j. X. Robson
was named as personal representative
Of DENLY in oil matters,s Mr.. Hogan
said that all that was done in De-
cember, 1922, was done at the direc.
ton Of DENLY.
He emphasized that the law author.
lied the exchange Of crude oil for
fuel oil, and in making the contract
for the storage tanks at Pearl Har.
Dor, he declared that Fall was merely
carrying Out the IetteT ana SplrlC OF
the law. Mr.. Hogan impressed upon
the jury that Pearl Harbor was a
strategic point, and since. the Govern.
ment had no way by which 1t could
refine oil itself, 1t could obtain fuel
oil for the Navy only by exchanging
the crude.
Fall had taken up the matter Of
storage tanks with the Navy Depart.
ment. it was pointed out, and on July
6. 1921. Admiral Potter sent Falls let.