Evening star., 1926-12-01

PENDANTS and had no direct bearing,
he declared, on the contract of the
Pan-American Co. Justice Hoehling.
after a sharp tilt between counsel.
decided that the letter should be read.
The purport Of this communication
was to the effect that the Union Oil
Co., through E. w. Clark, its execu-
tive vice president, requested Mr..
Penf1eld to bring to the attention of
the Secretary of the Interior and the
Secretary of the Navy the fact that
the Union company was disappointed
at not having had an opportunity to
submit a bid on the naval reserves.
The letter reminded the Secretary of
the Interior that the Union Oil Co.
was very much in the oil business
out there" and expressed the hope
that the department would bear the
company in mind II any other bids
arc requested at a future time.
A similar communication, 1t was
said. was being sent to the Secretary
Of the Navy.
The Governments purpose in intro
ducing this matter was to strengthen
it's contention that all had not been
wide open in the solicitation Of bids
for the naval reserves. The court at
this point adjourned for lunch.
Finney Tells Story.
Judge Finney took the stand at
the opening of the afternoon ses-
sion yesterday and at once was
plunged into a long, detailed story
of the naval reserve oil leases and
contracts to build fuel storage tanks,
which were awarded to the Pan
American Petroleum and Transport
Co., the Doheny concern.
The witness said that under the
organization chart of the Interior
Department he was charged with the
execution Of leases of oil and coal
lands and that in this capacity he
handled all OF them except when
absent from the city. in which
event Mr.. Fall took over the duties.
When Fall first came into ONCE,
Judge Finney said, he asked ques-
tions concerning pending claims or
the Honolulu Oil Co. In Naval Re
serve No. 2.
In, November, 1921, the witness
continued, "a proposition was up
for exchanging royalty oil for fuel
oil for the Navy" and Fall. from
Yuma, Ariz., telegraphed him to have
change Of the two grades Of oil 'in
writing" The telegram added:
Suggest no action be taken until
we have opportunity for conference"
The department, however, proceeded
to carry out the proposition OF ex-
changing crude oil for fuel oil.
which was to be stored.
Plans Were Submitted.
Director Balm Of the Bureau OF
Mines and Fall went West and
conferred with Oil concerns on
the Pacific Coast. Judge Finney ex-
planned, and upon their return Balm
"prepared some plans and proposals
and I went over them with him
These proposals for the construction
Of the tanks were mailed out to the
Pan-American Co., the Associated OIL
Co., the Standard OIL Co. OF California.
j. G. White Engineering Co. and
Ford, Bacon & Davis, engineers.
After some difficulty with the cost
plus" feature Of the proposals. a re-
vision was made and the time ex-
tended for a reply until April Is.
"When Fall left for New Mexico
April 49," said the witness, "he asked
me when the matter Of storage oil
would be closed. and I told him not
until the bids were opened on April
15." On the previous day Fall wrote
to Secretary DENLY, suggesting that
the crude Oil in the naval reserves
be sold for money and the proceeds
used in constructing the tanks. as he
anticipated difficulty in getting a
favorable answer to his proposals.
No reply was received, the witness
said.
Judge Finney said the Standard OIL
Co. of California expressed doubt that