Evening star., 1927-10-26

CidES LOf TOydlIleS. It0DerIS dSkeu
| The witness replied that he had in
! formed Fall that royalty would be
paid in exchange for fuel oil deliver
ed at terminals along the coasts from
Port Author, Tex. to Maine. His
company had about II such ter
minals. he said. The exchange would
he on the basis of barrel and quar-
ter of royalty oil for barrel of
fuel oil delivered to Gulf ports. and
for deliveries at Norfolk, and north
I the exchange would be barrel for
barrel.
Fall did not say whether that
would be satisfactory, did he?" Rob-
erts asked.
"He did not commit himself one
way or the other" Beatty replied. He
added that other terms were not dis
cussed.
Told Sinclair Had Deed.
Secretary Fall told Beatty. the wit
ness said that some claims had heen
filed or were pending against Teapot
Dome and that preference would be
given ito the company that would
quiet them and not leave a contro-
versy pending in the Government"
He said that Sinclair had procured
deed and they were in his pos
session 0'all's)." continued Beatty,
and he mentioned the amount Sin
clair paid for them. which, l believe.
was million dollars
When Beatty told Fall he thought
the delivery of the deed was con.
tngent upon the lease being made, the
Secretary said nothing. the witness
testified
Beatty said he offered to reduce his
proposition to writing if it seemed
worth while, ''and as l recall the
Secretary said he would be very glad
to have me file written proposition. :"
The question of constructing a pipe
nne was not discussed in the con.
terence. continued the witness, who
also stated that nothing was said
about the Navy's requirements for
storage of oil at seaports and the re.
quIrements that the lessee build a
pipe line.
Asked by Roberts IL any other mat.
ters were discussed. Beatty said Fall
brought up the matter of selling the
Governments royalty oil from Salt
Creek field TO his company and men.
toned some negotiations which had
been in progress.
Possibility of Trade.
He said it might be possible for
us TO consummate a trade in reference
to the Salt Creek" said the witness,
adding that previously he had ex-
planned his company's position and
needs in the Wyoming area.
Beatty said he made a proposition to
Fall whereby the Governments 1ov.
atty Oil would be exchanged for fuel
oil and would be delivered to the Gov.
ernment at certain places along the
coast. The conference ended by Beatty
telling Fall he was going to Asheville,
n. C., and II am inclined to think
requested him to keep the entire mat
verbally or by telegram from Ashe.
Vile"
Roberts then produced and offered
in evidence a telegram from Fall to
Beaty dated April 4 and which the
latter received at Asheville. The tele.
gram referred to royalty oils and pipe
lines on the Salt Creek proposition.
Beaty replied on April 5 that a pipe
line would be constructed from Salt
Creek to Casper. Wyo.
The same day Fall sent another tele-
gram inquiring if his terms were based
on certain grade of Navy oil, and
Beatty replied on April s, (the day be-
fore Sinclair got the Iease) that he re-
ferred to bunker A. Navy oil in
connection with his lease proposition
on Teapot Dome.
Thought Terms Too Liberal.
Beatty also said In the telegram that
he thought his terms were too liberal.
bur he was willing to go that far to get
the lease. The telegram concluded with
the statement that the details were too
numerous to discuss back and forth by
telegraph, and request was made of
Fall that the matter of the lease of
Teapot Dome be held in status quo
until he could reach New York in a
few days.
Did you receive a reply to that
telegram" asked Roberts
No" declared the witness.
When did you learn that the lease
had been signed?"
"A few days later--I saw it in the
newspapers.
Roberts concluded his direct exami.
nation here and Littleton began cross.
examination by pushing questions
concerning what a Mr.. Connolly, now
dead, and who had been sent to con.
fer with Fall by Beatty. reported back
10 his chief.
Roberts objected to the questions
and the court sustained him. Under
further questioning by Littleton. Mr..
Beatty said he heard about March 20
that a lease of Teapot Dome was
under consideration, this information
having reached him from a member
of the board of his company. Little.
ton then asked If Fall had told Beatty
just what the satisfactory PROPOSE
ton was" that Sinclair had made for
the lease of Teapot Dome and Beatty
replied that he did not. Furthermore,
the witness said, he did not ask Fall
about it. Beatty did say he would be
interested in taking a lease on the
entire naval reserve. but told Fall
nothing about building a pipe line, as
the matter was not discussed, the
witness said in answer to Littleton's
questions.
No Evidence Of Secrecy.
Your proposition did not include
building of storage and putting fuel
oil in that storage, did it?" asked Lit.
Teton.
Nothing of that kind" replied the
witness.
During your conference did you see
any evidence of secrecy"
II saw none"
was not the matter of leasing Tea
pot Dome a subject of discussion
among oil men before YOU came 10
Washington for the conference?"
Il can only state my impression. :"
replied the witness. And when Rob.
erts objected to any impressions the
court sustained the Government.
Leahy then took up the cross.exam
ination by asking how long the con
ference lasted. Beatty said il was
about 30 minutes. In response to fur.
ther questions the witness said Fall
did not show him the quit claim deeds
to Teapot Dome, which the Secretary
had SAID Sinclair had acquired.
Pressed for a recollection of discus
sion about pipe lines in the Teapot
Dome matter. the witness maintained
the only question of pipe lines was
brought up in connection with the