Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1927-10-19
IN
FALL Case IS
HEARD TODAY
Former Secretary Ex.
plains Series of
Meetings Which Led
To Lease

WASHINGTON, ID. c.. Oct. 19.-yap
Harry +. Sinclair, first approached
Albert b. Fall regarding the lease Of
the Tea Pot Dome naval oil reserve
during his celebrated Christmas visit
70 the then interior seeretary's New
mexico ranch in 1921, Martin w.
Littleton, counsel for the wealthy oil
operator, declared today before the
jury hearing the criminal case
against the two men.
:, hesuming his opening statement TO
the Jury OF two women and ten men
wnleh was begun yesterday, Mr.. Lit
tieton said that during the latter part
OF that visit, Sinclair asked Fall if
ne intended to lease naval oil reserve
No. 3 (Tea Pot Dome)
Fall replied that he was having
an investigation made and that So
lar as he was concerned he would
make no determination about a
lease until the investigation was
completed the attorney asserted.
Men Conferred
Sinclair went TO see Fall about
Usage Indian land leased in Okla
noma, he continued. The purpose Of
the visit was not to take up the lease
OF Tea Pot Dome that Sinclair finally
obtained, leading to the charge that
the two men had conspired together
against the government and that Fall
had received large sums of money as
result Of the transaction.
Referring to the plan for exchang-
ing naval crude oil for fuel oil in
storage, which is entwIned WIN the
whole oil lease tangle, Littleton told
the jurors that Captain John X. Robi-
on, the navy's representative IN oil
matters, would testify that the
first suggestion for such exchange
was made by him.
The New York lawyer also asserted
that the war plan of the navy be-
j fore the Harding administration
came into power called for the stor-
age of 45,000,000 barrels of oil on the
Pacific and Atlantic coasts TO be
held for the use of the navy only in
the event of a national emergency.
Oil Exchange Legal
Littleton asserted that the propo-
sition Of exchanging crude oil for
fuel and storage came up in the navy
in November, 1921, before the lease
of Tea Pot Dome, and during dis
cussion of crude oil from leased
wells in the California fields.
- Secretary DENLY refused to take
ny action until he could find out
neither there was legal authority
for it," counsel said. "1he judge ad
vocate general Of the navy held such
exchange to be legal and not until
then did Secretary DENLY approve"
The letter of approval is the cele-
brated one on the margin Of which,
in Denby's handwriting b. the nota-
tion, ''Do this, Ed"
Littleton told the jurors that the
policy of secrecy In the oil ne
gotiations originated not with Fall,
but with the navy and TO support
this contention he recalled the let
ter written 10 the interior depart
ment by Theodore Roosevelt, Jr., as
assistant secretary of the navy. on
December 2, 1921, relating TO naval
oil storage at Pearl Harbor which
said that because OF national de-
tense the plans as 20 this storage
should be held strictly confidential.
Littleton undertook 10 outline fl
nancial dealings of the Continental
Trading company. detailing the sale
of oil by A. T.. Humphries to II. Nj.
Blackmer. absent government wit
ness. The government charges more
than two hundred thousand dollars
in Liberty bonds found their way
20 Fall through transactions through
this company.
Legitimate" Transaction
"Sinclair never had AIRY interest
in the Continental Trading company"
Littleton declared "He never had 4
Liberty bond in which the Cont
mental Trading company had ever
had an interest. He never owned
bond of the description given here.
He never passed a bond 70 Fall Of
the description given here"
Taking up the $25.000 liberty bond
payment Sinclair made % Fall, az
ter the latter left the cabinet. Little
ton asserted that this was "iegit-
~ inate" transaction. Sinclair wanted
Fall to 60 TO Europe for him. he
added; Fall had no funds and Sin
clair sent the bonds to him SO that
he could go without any financial
worries.
"We are going 10 ask You 10 60
along with US patiently "a the erd
and then confidently
we are going TO ask you 70 return a.
verdict Of not guilty Littleton said
in closing his address
George W. Holland. attorney IN
the geological survey, took the stand
rs the first witness ard identifica-
ton for the government the cxecu-
tive order of President Wilson Gre
ating naval oil reserve number three.
on April 80. 1915, and produced Am
documents Of the interior depart
ment referring 10 the ease.
stephen G. Quiggley. clerk M the
state department; George Otis smith.
chief of the geological survey: lee
r. Martin. Of the comptroller gem
erals office then produced docu-
mentary evidence in connection with
che case. including the Tea Pot Dome
(Continued on page twol