The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-10-19
POINT Won BY
US. ON FALLS
Famed NOTE
Defense Builds BulWark of
Patriotism to Account
for Oil Deals.
DENNY 1N' ON LEASE
Admiral Robson to Carry
Part of Blame, to Clear
Two Defendants.
BY HERBERT LITTLE

United Press staff Correspondent
WASHINGTON, Oct. 19.-The
Government won its first legal
Skirmish in the Fall-Sinclair oil
over defense objection, it obtained
admission of Falls famous letter OF
July, 1921, to E. L. Doheny, Cali
fornia oil magnate, asserting that
he CFalD then was in complete
chargee of Government oil re-
serves.
The victory came just before
luncheon recess, after morning in
which Martin Littleton, defense
chief, had told the jury former Sec
retary Fall and Harry F. Sinclair,
oil magnate, would prove they were
acting in the interest of the ma
tional defense in signing the Tea
pot Dome oil lease.
Plan Laid to Robson
Martin w. Littleton, in an advance
summation of the case for the two
noted defendants, charged with con-
spiracy to defraud the Government,
did the following:
/. Credited Admiral j. K.
Robson, naval oil chief, as
originator of the oil leasing plan
under which Teapot Dame and
Elk Hills were leased.
2 Said Secretary of the Navy
DENLY knew of every step in the
lease negotiations.
8. Said Sinclair never owned
share of stock in the Continental
Trading Company, the alleged
source of $230,500 of Liberty bonds
found in Falls possession follow
ing execution of the Teapot lease.
4. Said that Sinclair's $250,000
payment to Fall in 1928 was made
In Liberty bonds, because bonds
were easier to send than a check"
CThis payment was in connection
with Falls trip to Russia as
counsel for Sinclair, it is claimed.
5. Termed the Governments
charge that Sinclair gave the
bonds to Fall, "a fugitive and
phantom thing"
Recess Is Taken
Littleton concluded after a speech
of two hours and forty-five minutes
and a recess was taken, preparatory
to opening of the Governments tes-
timony.
Littleton said that the famous
New Years Day, 1922, conference al
Three Rivers, N. M, between Fal
and Sinclair, was primarily to dis
cuss Usage Indian oil land leases.
The prosecution had said it Woulo
attempt to show this meeting be-
tween the aged secretary and the
powerful oil-race horse man was the
origin of an arch conspiracy to de-
fraud the Government in connec-
ton with the Fall lease of Teapot
Dome to Sinclair.
Littleton said Sinclair asked Fal
at the conference if he intended te
lease the Dome, but insisted the
Usage land question was foremost.
Patriotism Is Talked
Littleton contended that, 1nSteae
of a conspiracy, his client was tax
ing one step in connection with the
Navy,s attempt to obtain fuel oil fol
battleships.
He previously had indicated thai
Sinclair and Fall would declare they
merely were aiding national de-
fense plans-not conspiring to cheat
the Government.
Announcement today that the
court would sit four hours daily, ane
recess over Saturday and Sunday
raised prospect of the trial lasting
until winter.
Fall in Fair Condition
The aged Fall appeared in fail
condition today, although he il
watched closely by his family ane
physicians because of a cold, ac'
cording to his attorneys.
Sinclair and his family smiled a.
they entered court, the oil multi
millionaire pausing to congratulate.
a cartoonist on a sketch he did O
Sinclair yesterday.
Litt.eton indicated the defense in
itends to shunt responsibility in th'
case from Falls shoulders to thos'
of other officials.