Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-02
DOHENYS MAY FACE
TRIAL FOR BRIBERY

CONTINUED from First Page)
demurrer for argument. At that argu-
ment they will contend, II is expected,
that Fall was a de jure ofhclal or the
United States, that he assumed the
right to deal with the naval reserves
and he could still be bribed, even
though he had no legal right TO ar
range the leases.
On the disposition of the demurrer
depends, of course, whether the
Dohenys would have to stand trial.
Should the court hold with the de-
Tense, there would be no trial. but II
the Government view should prevail,
q trial wouldbe necessary.
To Seek s1o,545,376.
The Edward L. Doheny interests,
which were denied the return of all
funds spent by them in carrying out
the provisions of the lease and the
Pearl Harbor storage tank contract
by the Supreme Court, will petition
Congress at the next session for reim-
bursement Of S10,545, 1864. represent.
ing the amount invested by the two
petroleum companies with which Mr..
Doheny Is identified
HIS was SIdlCQ AOudg w AADo@h'
who represented him both in the Los
Angeles civil suit for the return OF
the lease to the Government and In
the conspiracy trial here. The 10mil-
lion dollar figure. Mr.. Hogan explain
ed, represents the actual loss of the
Pan-American Petroleum & Transport
Co., with headquarters in New York,
and the Pan-American Petroleum Co.
of California, both of which were in
volved in the lease and contract. Mr.
Doheny now is a minority stockholder
in the Transport Co., but still retains
control of the California organization
To Lose $3.50. s56.5s.
The Transport Co., If congressional
relief is denied, would lose the sum
total'of 1880, S1411. representing the
amount expended for all Pearl Harbor
storage construction facilities under
the contracts of April 25 and Deem
Der IL, 1922. and $1,9S6. 142.47, repre-
senting the cost of transportation of
100000 barrels of fuel oil from the
Pacific Coast to the Hawaiian storage
tanks. Under the Supreme Court de.
cision the Transport Co. therefore
stands to lose 1886, 1858. Mr.. Do
heny parted with his controlling in.
terest in the Transport Co. in 1925, and
he and his immediate family own but
a comparatively few shares of stock
In that organization now.
The California company, Mr.. Hogan
explained, loses the lease and $1.20S.-
41976, which represents the actual
cost of drilling and maintaining wells
on the reserve and the actual cost OF
constructing and maintaining a re-
finery. The lease. the attorney added
never was carried as part of the as.
sets OF the California corporation or
or its holding company. the Pan
American Western and Petroleum Co
Profit Not Involved.
The foregoing figures, Mr. Hogan
said, were agreed upon by counsel for
the companies and by Owen J. Rob-
erts and Atlee Pomerene, the special
Government counsel appointed to rep.
resent the United States in the civil
proceedings at Los Angeles and the
criminal proceedings here. The books
OF the company were thrown open tC
special accountants selected by Rob
erts and Pomerene, and also by the
TWO companies. and the figures were
embodied in the courts decision.
Mr.. Hogan made it plain that the
only relief sought would be for the
money expended for the actual cos,
OF various undertakings necessary to
carry out the terms OF the lease and
The Pearl Harbor contracts. No ques-
ZION OF profit the companies may have
received will enter into the petition
Tor reimbursement, he added.
The attorney also recalled that Mr.
Doheny personally proposed to the
Senate oil investigation committee al
The time he was called before il that
an impartial commission be appointed
70 inquire into the legality of the lease
and that IL that commission found the
agreement to be not sound, he would
return the reserve to the Government
Letter to President.
At later time. when the Question OF
constructing additional storage tanks
to hold 100000 barrels of oil for the
Navy at Pearl Harbor was held up for
technical reasons, Mr.. Doheny wrote
to President Coolidge Offering to con
tinue with the project and stating he
personally would bear any loss that
might accrue from the undertaking
Mr.. Doheny assumed, when he made
his proposition to the Senate commit
tee, that II the lease was returned &c
the Government. he would be REIN
bursed for any construction projects
and work performed by his companie,
at that time. Mr.. Hogan thought.
Charles Wellborn. attorney for Mr.
Doheny at Los Angeles, announced
there yesterday that rehearing of tn,
case would ut be asked of the Su
preme Court.
1.-THE decision" he said, "is regard
ed as the end Of the litigation. Their,
will be no rehearing petition-tha
would be idle
To Conserve on.
The Navy nanar t,,ox& x,,.i, aA.,x .
policy of conserving all the oil in tn
ground OF the Elk Hills reserve, &C
cording to Secretary Wilbur. Effort
will be made, he said, to negotiat