Evening star., 1926-12-02

ness Cotter continued his trip to
| Los Angeles.
Balm said he remained about "a
hours with Secretary Fall and that
| Mrs. Fall took everybody on on
party so that the two could oe TO-
| gether.
He said he showed Fall the plans
and explained to him that the Pearl
| Harbor project was very much more
| complex than they had thought. but
| that they were going to endeavor TO
| interest various oil and pipe line COM
panies in the construction work
Did Fall make any change In the
| specifications" asked Hogan.
| None whatever" replied Balm. he
| offered no suggestion, merely tellhs
me that it was all right and 10 go
ahead"
COtter Arranged Meeting.
| Arriving in Los Angeles, he said.
| Cotter had arranged a meeting Tor
him with officials of the Pan-Ameri-
can Co. Later he met Doheny senior
and junior. A Mr.. Anderson, a vice
president of the company was to
| handle the business. he said.
| Bain placed the plans and speclilca-
| tions before company officials. stating
| the confidential character of the work
and the difficulties he had had in
| framing anything like a proposal. He
| told them the names of the other
company officials whom he was to see
and asked the Pan-Amerlcan co. TO
make a bid on the work.
At San Francisco during January,
1922, he saw II. NJ. Story, president
| of the Standard Oil Co. OK California
and other officials. He gave to the
Standard company the same informa-
ton which he presented to the Fan
| American concern.
| did you take with you the lesai
| opinion of the judge advocate general
of the Navy" asked Mr. Hogan. In
this ruling the Navy Department has
said there was authority under the
law to carry out the project.
| Balm said he showed the opinion to
| all the companies.
| During his San Francisco visit ne
took the matter up with Paul Shoup,
| vice president at that time OF both
| the Pacific and Associated Oil COS,
and with J. {. Mclaughlin. vice presl-
dent and general manager of the Asso-
ciated Co. In each case he gave the
sames information and made the same
request for bids. At this point the
court recessed for lunch.
Saw Various Companies.
Recalled to the stand after the
lunch period. Balm continued the mar
| rative of his activities on the Coast
in connection with interesting various
oil companies in the Pearl Harbor
| project. After four or five days in
San Francisco he testified that he saw
| no other oil officers, but went to in
| spect the naval reserve section in
| Southern California. Thence he re-
| turned to Los Angeles and saw Of
| ficerS Of the General Petroleum Co.
| He was advised by the attorney of
| that company that such contract
would be illegal. The attorney so ad-
vised officers Of the company, he said
and for that reason he did not go
| into any details of the Pearl Harbor
project. Officers told him. in view
of their attorneys opinion, they could
not consider the matter.
| Later he again saw Doheny and
| Anderson of the Pan-American Co.
and was told by them that the Pan
| American Co. would be prepared to
make a proposal on the work. Balm
said he did not know whether
| Admiral Robinson had been advised
| to this effect.
| Then he saw Mr.. st. Clair and
other officers of the Union Oil Co.,
| talking over with them questions re-
lating to the exchange of oil and
| construction Of storage facilities. He
showed them the Navy Departments
opinion from the judge advocate
general in which the proposal was
declared legal. Balm said he left
Los Angeles with the impression that
the Union company would be inter-
ested only in the exchange of oil
and not in the construction work.
That concluded his visit to the West
Coast, he said.
Presses Secrecy Charge.
In support of it's contention that
Secretary Fall conducted the Pearl
Harbor fuel storage contract negotia-
tions with utmost secrecy" the Gov
ernment yesterday afternoon read
into the record, as documentary evil
dence, a telegram from the Chicago
Bridge and Iron Co. which declared
the company's representative had
been refused set of the plans at the
tunity to bid was desired Mr.. Rob
erts also read Falls reply that the
bids were mo ones business" and
that under the law he was required to
deal with oil companies alone.
The Chicago cOmpany'S telegram
declared it had learned the Interior
, Department had invited bids to be
submitted privately; that they had not
been advertised and were handled with
the utmost secrecy; that it's represent.
ative was refused set of plans, and
that such procedure was contrary ia
public policy. Fall declared the bids
were not being handled privately, but
I'VE are required under the law to
deal with oil companies. No publicity
has been given because it is no one's
business and because the Navy de-
sired as little public information on
the project as possible. Falls tele
gram concluded with the statement
that he could not entertain the com
pany's protest nor could he see where
criticism Of the manner in which the
contract was handled "is warranted
Roosevelt on Stand.
Col. Theodore Roosevelt, former AS
sistant Secretary Of the Navy, testi
fed that the leasing of the naval oil
reserve and the granting of permis-
sion to extract oil from 1t does not
constitute a part of the war plans
1.-THE war plans were," he explained
'the storage of Oil and construction
necessary to store it."
Col. Roosevelt, when turned over
to the defense for cross-examination
said the Pearl Harbor project orig
mated in the war plans division OF
the Navy Department, went through
the general board and came back and
was approved by the Secretary of
the Navy. When / say origin
ated,'" the witness added, II do not
know who particularly took it up in
tho nalo diUioinxa -