Evening star., 1927-10-19
OIL COUNSEL CLASH
At TESTIMONY Of
F|NNEY ON LEASES
Not Consulted on Develop
ments Leading Up to Con-
tract, Says Asst. Secretary.
FIRST SKlRMISH RESULTS.
IN GOVERNMENT VICTORY
Verbal Battles Follow Reading to
Jury of Letter From Fall
to Doheny.

First indication that the trial of
Albert g. FAN. former Secretary of the
Interior. and Harry r. Sinclair. New
York oil magnate. was off to a good
start came this afternoon. when Owen
j. Roberts. special Government prose
cutor, and George +. Hoover. Sinclai ir 5
attorney. engaged in several brushes
While Roberts was elicitine testimony
from Assistant Secretary of the In
terror F.. c. Finney. to the effect that
he was not consulted on developments
leading up to the lease of Teapot
Dome. and did not know of its leasing
until several days after the papers had
been signed.
AS Mr.. Roberts read to the 10 men
and women who comprise the jury
in Criminal Division .. over which
Justice Frederick l.. Siddons is pre-
siding. letter from Fall to Edward
L. Doheny, in which he stated that
he would handle leasing matters eX-
actly as he thought best, MIR. Hoover
suggested another letter be inserted,
To which Mr.. Roberts took exception,
declaring he had no right. in the
presence of the jury, to make such
remark. and, further that he would
conduct his own case as he saw Mt.
Mr.. Hoover replied he did not see
where he said anything 10 get mad
about"
Government Scores Point.
the first efforts of the defense to
block Government testimony resulted
in victory for the Government. when
Justice Siddons permitted Mr.. Finney
TO tell what the practice was in the
II - fF.
leasing public lands TO private indi-
Viduals.
The two prominent attorneys man.
aged TO get in few words at each
other during their arguments for and
against the admission of the testi-
mony to the court. but in the end
Mr.. Roberts was sustained.
The witness reply to the question
was that there were several prac-
tices, one permitting a prosDector to
have lease after he had "wildcatted"
for oil and found it: another TO have
a lease if he surrendered a mining
claim, and third practice was to
place any vacant public oil proven
land into competitive bidding before
a lease was signed.
Assistant Secretary Finney declared
he was not consulted about letter
Fall wrote to Secretary Denby on
July 2S, 1921. in which the former
suggested he inquire of DENLY wha I
disposition would be made of royalty
oil accruiDg TO the Government AS a
result of the lease granted, and in
cluding the suggestion that crude oil
he exchanged for fuel oil and storage
space TO be provided by the lessee in
stead of the royalty oil.
F'inney likewise had no knowledge
of Denby'S reply until some time after,
he testified. Denby's reply acquiesced
in Falls suggestion that Government
royalty oil be exchanged for fuel oil
and storage tanks.
Knew Of Conferences.
F'inney, in answer TO questions from
MIR. Roberts, said he was cogniZant of
conferences about that time between
Fall and naval officers. Likewise, Fin
ney did not know of Denby's letter 10
Fall of October 25. 1921. until some
time after its receipt. This letter con.
tains suggestions for handling the oil
accruing TO the Government and
among its recommendations was the
declaration that developments of Tea
not Dome should not he undertake.
except to protect the Government from
depletion of its oil by private parties
drilling on the border line. Fall vert
West about December l. 1921 and re
turned January -, 1922 and during
that time he had no knowledge Of any
report being prepared for the Secre'
tary on claims against Teapot Dome.
Finnev first heard about leasing
Teapot Dome some time in the early
part Of February, 1922. when Fan told
him he was considering proposition
for leasing Teapot Dome and Mr.. Sin
clair or Mr.. Sinclair's company would
be possible applicant for the lease
The next he heard of his was wher
an emplOye of the department asked
F'inneY for the use of legal drafts
man to prepare the lease.
- Learns of Signing.
Finney did no work in connection
With it's preparation and learned OF its
signing or April ~. 1922. when Fal
departed for New Mexico. loci ed IN:
lease in his desk ard gave orders no
io give anything ont about II untl
after the lease of the California re
serves had been made
Mr. Finney said he knows Of M
public notice having been issued "a Il
ing for bids on lease for Teapo
Dome or any public notice 10 the ef
feet that the department would leas'
that reserve. The next question let
mp to what was the policy or practice
arguments between opposing counsel
Asked if lone Shaffer" had applied
for a lease Of Teapot Dome prior L
1922, the witness replied that he had
and that former Secretary Payne ha.
denied the application.
Taking testimony was started
this morning after Martin w
I.ttieton OF New York sssociat,
counsel for Sinclair. wound up /;
., long opening statement with the EN-
phatic declaration that his client ha'
no part. directly or indirectly. in tn
passing Of Liberty bonds To tn
amount of S230 500 Ia Fan. as tn
Government charges ne "deiivere.
OF caused 10 he delivered"
William r.. Leahy. counsel for Fall
reserved his opening statement uni
after the completion of the Govern
ments case.
Bond Charge Denied.
After setting forth with painstakini
care Sinclair's version of The stor,
which Roberts Yesterday told the iur
in regard to the alleged transfer o
Liberty bonds from the oil magnat
10 Fall, Littleton declared the evidenc
would show that 'he never passed t
Fau ~ any one in behalf OF Fall,
bonds Of the description given by tn
nroSectulon The Government ha
told the iEry that out Of the profit
made by the Continental Trading c6
in an OF ira action in which Sinclai
had par;. Liberty bonds were pu,
chased and distributed and some .
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