Evening star., 1928-04-17


Ii as his personal opinion that the re-
serve should be leased.
Balm told OF discussing with Fall the
proposal of the Texas OIL Co. 10 lease
the Dome. and after that concern made
clear Its proposition with respect 70 fur
ntShing the Navy fuel oil Fall said there
was no use going further with that COM
pany. according TO the witness. This
conversation took place a few days be-
fore the lease was signed. Balm said
some one in the petroleum division of
the Bureau OF Mines made a cnmpari-
son of the proposition submitted by the
Texas company and the one by Sinclair
and reported the Sinclair proposal
would give the Navy more oil. Balm
himself told Fall that. in view of the
requirements laid down by the Navy.
the Sinclair proposal came more nearly
meeting them He also testified he told
FAN the Sinclair oil lease would yield
more oil and there would be larger
number OF big wells.
Two Firms Excluded.
Fall. Arthur w. Ambrose. former Gov
ernment geologist, who testified yester-
day. and Balm had discussion as to
what other companies might be inter-
ested In making bid along the lines
of the Sinclair bid. the witness declared
The Standard oil OF Indiana and the
Midwest Refining Co were excluded
from consideration ny Fall because they
already dominated the Salt Greek field.
to the north Of the Dome. Balm declared.
adding that Fall wanted TO bring IN q
new company with larger buying power
III order 70 influence prices. When the
Texas Co. was mentioned Balm said they
agreed that concern would be quite COM
petent 10 do the job II It could be In
terested. The Gulf OIL Co. was men
toned, but Balm said he told Fall 1t was
very conservative and had shown no dis
position To expand, Furthermore, the
Melons Of Pittsburgh controlled 1t. and
in view OF the fact that Andrew Mellon
vas In the cabinet there would be some
question OF propriety In interesting that
concern. AS 10 the Pure OIL Co. which
Balm said occupied q strong position in
the mid-continent field. Fall was given
the same explanation IN that II Was
controlled by the Dawes brothers and
Charles q, Dawes was then director OF
the Budget Bureau
Balm recalled that Fall told him Id
ward l.. Doheny had thought OF leasing
the Dome. but that Fall had persuaded
him it was a long way from DOhenyS
interests in Mexico and California and
Doheny agreed. The Producers & Re-
finers Co, Was considered. but Balm
said IL was smaller company and not
of the same magnitude as the others.
Balm added that some one at the con,
ference said the Producers & RefinerS
Co would probably not be interested IN
presumably would not be able To finance
the large project which the Navy had
adopted.
In answer to questions by Hoover,
Balm declared he did not recall Fall
giving any instructions about secrecy
in the Teapot Dome negotiations, but
did remember that Fall had ordered
against publicity because the Navy had
requested the reserve leases be kept
ct that time.
Roberts Cross Examines.
owen j. Roberts special Government
then took the witness for a
gruelling cross~eSamination, He drew
from Balm that while The latter was
en- route 10 the West Coast I'm necem- /
her, 1921, he stopped of at Three
Rivers. N. Mex, for - hours. whete
he met Sinclair at Falls home. Rob- /
erts asked Balm during the conference !
about what companies might be inter- !
ested in bidding ON the reserve II he /
told Fall that the Secretary should test |
the market and md out which company /
was large enough 10 carry on the prol- /
Get, and Balm replied In the negative, /
When asked by the Government prose- /
eutor II he suggested advertising for |
bids. Balm replied that Fall had laid him |
on previous occasion that he had not I
found anything in the law requiring ade |
vertising for bids and. further that he |
did not believe that was the way to set /
the best company
Roberts then produced nain's teSti~ |
mony before the Senate Teapot Dome |
IN 1928 and also letter he /
wrcle 10 the committee IN response Ia \
request from the committee aud III /
Qllred why he had not mentioned the /
oil companies ON those occasions That !
we're the subject nf discussion as pos
sthie bidders, After admitting that the I
names at the Pioneer, Pan n-AmeTiean,
Gulf and Pure on Cos, were not la
either the testimony ar letter. Rain eN- I
planned that no had depended on ln-
formation from Ambrose, which ne
IN his reply to the eosn-
mittee,
Roberts asked HAHN II he had met
Sinclair often between April Z 1922,
wien the lease was aignea. ana tehru-
AIRY u 1929, when Tie contract Tor eFets
lion uf storage tanks by alnciaig's een-
pany was contaminated, taln replled
Ae had met Sinclair savegal times M
Falls once, and Roberts then shot back
Ihe question aa ta whether h@ had nnt
spent seven DAYS on anelaif's private