Evening star., 1927-10-20

ton. the witness explained. Fall told
him about a settlement which had
been made between the United Mid
way Co. and the Pan-American Co. a
Doheny concern. in connection with
the drilling Of - wells in Naval Re
serve No. in California.
"Mr. Fall said he was sorry thai
Mendehhall had been designated. as
they had some disagreement about tbs
compromise effected" FinneN testifiei l
Finnev explained that this disagree
ment arose over the opposition oi
| Nendenhall to the granting Of cor
, tain lands to the Midway Co.
United Midway Claims.
Mr. Hoover asked the witness If he
! had ever talked to Fall about the
| United Midway claims, after the Sec
retarv had come into Office in 1927
lie replied that he had called the mat
ter 10 his attention after the claims
had been referred to the Department
Of the interior hy George 3. Christian
| ir., private secretary to PRESIDENT
Harding.
Justice Siddons inquired about the
situation about that time with regard
| 10 the leases. In response Mr.. Hoover
eXplajned that the United Midway Co
/ had made application for some ~
wells in Naval Reserve No. |. AS a
result Of Il compromise settlement. the
| par-American Co. was awarded IA
wells and the United Midway 8,
! In reply to questions Finney Said
the United Midway Co. had claims
ON naval reserve No. I and after the
/ 4 Aa
| company had presented to President
/ Wilson in the closing days of his
/ administration petition for lease
| on this reserve. This petition was
| forwarded TO the interior Department
by President Harding's secretary
! after the new administration entered
| office Secretary Fall informed the
President on July 8. 1921. that set
| Element had been made with the
United Midway Co., which the wit
ness learned about some time later or
his return to Washington from an
official visit.
The Pioneer Oil 60 had succeeded d
To claims on reserve No. g. which is
Teapot Dome, 70 the amount OF about
500 acres, and under the law h,
possessing these claims they could
! apply for lea ses on producing wells.
! Four applications We're made for
leases. and in all four cases produc.
ing wells We're alleged. However,
| these appiica tions. the witness said
! we're rejected by Falls predecessor.
| Secretary John Barton Payne on the
| ground that the wells were not cap.
! able of actual production in CONNER.
/ cial quantities.
| Rehearing on Leases Denied.
! Finney said a motion for a rehear.
. ing of PaYne's decision WAS filed. con.
/ sidered by himself and denied on
/ April Is, 1921 Finney's decision was
| based in part on the ground that
the wells were not producing in com
mercial quantities. After his decision,
! the Pioneer Co took the last step
J in its appeal by filing a petition for
| exercise of supervisory authority. and
/ Finney said. he signed letter 10
attorneys, for the company granting
them an oral argument on the mat.
| ter. September 20. 1921
On August IL. 1921. he testified he
signed another letter stating that the
oral hearing had been Cancelled and
that the hearing would he held be-
fore Secretary Fall. instead of him
self, at date to be determined later
between Fall and the company's at
| torneys. So far as he knows, Finney
declared, that oral argument never
has been made.
Justice Siddons upheld The object ion
of the Government counsel in highly
controversial argument precipit4 ted
ny Mr.. Hoover when he sought to oh.
tain from Finney his interpreta tions
of policy in regard to the Pioneer Co,
claims and the difference between a
placer claim and an oil mining claim
under section A of The general leas.
ing act.
Mr.. Littleton, chief of Sinclair coun-
sell interposed protest to the court
that the question goes to the part of
the indictment charging that Fall and
Sinclair conspired to defraud the Gov
ernment in obtaining quit claims
from the Pioneer Co. on its 80, 900
acres in Teapot Dome.
Mr.. Hoover had asked the witness
II the Interior Department did not
corstrue the Jaw with regard TO
claims on naval grounds as being un.
der the administration of the Secre-
tary Of the interior.
The court held the question seemed
| to be predicated on an Interpretation
Of the law by the witness. Hooy er
protested that "one of the questions
III IliiS case u TIC SOOu IdtLH Oh tHS
Secretary of the Interior He
changed his question several times.
During the argument that followed
the defense attorney declared he was
asking the witness what this policy
was.
Finally Mr.. Hoover changed his
questioning to ask if leases made in
Reserve No. 2 were in pursuance of
the act of 1920. Finney replied they
were.
The chief bone Of contention arose
when the defense attorney asked
Finney what was the difference he.
tween An application for an oil mining
lease and a placer claim.
Mr.. Littleton interrupted here He
declared the Government charges
that one of the evidences Of fraud is
that the quit claims acquired by Sin
clair from the Pioneer Co. were a
part of the conspiracy.
We are trying to show that these
claims were presented to the Govern