Evening star., 1928-04-16
SINCLAIR DEFENSE
SCORES AS DOHENY
STORY IS EXCLUDED
Government Counsel Fails to-
Get Alleged Bond DeIiv-
cry in Record.
TEAPOT DOME DRAINAGE
TESTIMONY RULED OUT
Prosecutor Opposes Introduction of
Expert Evidence and
Maps.

The defense In the Sinclair con-
spiracy trial today began the presenta-
tion of Its case after Justice Jenningt
Bailey had prevented special Govern.
ment counsel from introducing the
story of the delivery to former Secre-
tary OF the Interior Albert B. Fall Of
100000 by Edward l.. Doheny. jr,, but
did permit the prosecution TO present
evidence showing that Sinclair's attor-
ney In 1923 sent a package containing
S25. 900 In Liberty bonds to Falls banE
/ in Texas for deposit to his account
The Government Friday had nolle
pressed the bribery indictment against
Doheny. who is a son Of the California
oil magnate. In order to have his testi-
mony.
! At the opening of the afternoon
| session. Justice Bailey sounded a warn
| ing against publication OF the deposit
| ton given by Fall at Ell Paso few
weeks ago, declaring that If the state
| merit by the former cabinet officer is
| printed he would regard II as con-
| tempt OF court. and shall have steps
| taken 10 punish accordingly The
| deposition is TO be introduced by the
| defense In the course of It's case. What
purported to be part of the deposition
was published this morning.
Just as the defense opened up what
was 20 be the first thorough and de-
| tailed presentation OF Its side of the
| Teapot Dome story. the Government
intervened and vigorously objected 10
certain phases Of the evidence offered
Justice Bailey upheld the Government
In this regard.
Fight on Drainage Evidences.
George r. Hoover. counsel for Harry
r. Sinclair. aided by large rack Of
maps and Il handsome relief model OF
Teapot Dome, had prepared to lay he-
fore the jury the geological and other
technical facts concerning the condition
Of the naval oil reserve with respect
To It's oil being subject to drainage by
| private operators on the borderline and
TO show the necessity for leasing
Owen j Roberts special Government
counsel. argued that there In nothing In
| the indictment or In the Governments
case touching on the probability al
drainage. ff1e exercise of 0fficIal Ilidg-
naent on this question or the necessity
| for leasing the Dome Hoover, however.
maintained that this feature vas abso-
lutely necessary. In order to complete
the entire picture and in the course OF
bis argument for admission OF the
evidence he declared Ii WAS the Navy
and not Secretary Fall that made the
| decision 10 lease the reserve. In the
! light OF this he wanted 10 show the
facts that actuated THAT decision,
/ While denying him the opportunity ns
giving the detailed evidence Justice
Eatley. however permitted the defense
| 10 produce evidence tending 10 show
that Fall had been informed Of the
condition OF the reserve with respect 10
drainage. Acting under this permis.
sion the defense, through Arthur w
Ambrose. former chief petroleum tech
noligisi Of the Hurean Of Mines. got be-
fore the Jury testimony that II was tn.
| opinion of experts that unless action
| was taken the northern portion of Tea
| pot Dome would be drained of It's oil hY
/ private operators on the southern and
adjoining border of Salt Greek Field
| Ambrose. likewise. testified that ne told
! Fall the granting OF a narrow strip OF
1 ground on the border for operation
would not be ample protection against
| drainage. Under this procedure the
/ Government would have given lease
OF narrow strip on the north border
Of the Dome for the extraction of oil
on royalty basis Ambrose testified
1
| drilling would have To be done for the
proper protection Of the reserve.
| Ambrose likewise testified that follow
| ing this conference with Fall the cabl~
| net officer had directed his attention
| 10 the Sinclair proposition Of February
g. 1922, for operation OF Teapot Dome
under lease and subsequently, he WAS
charged with incorporating the features
| of SlnclaiT's proposal In thF regular In"
leriof Department oil lease form. He was
| engaged six weeks In this matter and
said Secretary Fall kept abreast OF the
| progress, He had no conferences with
| the Navy until the lease was finally
drawn up ready for signature, he testi-
| fed.
Letter Mentions ftonas.
Having received authority from Jus
| tiee Bailey 10 present the Heyely
ciaiF-Fali s2b 900 Liberty Bond trans
| action Roberta, through j. H. Benton
president Of the Firat National Bank Of
| ri paso. Government witness. present
cd the following 10 the jury
That early I'm June. 1929. the bank
| received letter IN Fall's handwriting
and OH Levely's letter head paper which
read Il am having forwarded from
| New York Monday, $4,000 In Liberty
/
| account and please credit my drawing
account" The letter gave authority for
| Falls son n~in"iaw. q. &. Chase. tn draw
| up 10 a2.h00 on the account, II closed
| with the statement II am sailing to-
morrow for London and possibly other
parts of Europe"
That on June s, 1898 the bank re-
eelyFd letter from Xeyelg, stating
that We are sending yuu today by cNs
| press Il package which h The property
| of A. II, Pail. aud to be received Tor his
| account" The deposit hilps showing
the 40 900 IN bonds had been credited
! TO Falls account, together with interest
| nt &A7l 40, was introduced Gustav ID,
| Wahlbufg, private secretary tn Sinclair
| IN l92a, told 0f conversation between
| Xeyeiy and Sinclair. ~ which he was
| present on May ~. ln2a, day nr two
before Sinclair sailed for Europe, sinr
clair, according 10 lhe witness. told ME
| II Col, Xeyely asked for bonds | should
give them t0 him" About a week later
Zeveiy did make request for bonds and
| Wahlbufg said he CAUSED them to be-
delivered 10 him,
Defense Case Opens,
| The defense then opened It's case A
! l.uge rack 0f maps WAS uundied into
| lhr courtroom hy aeserai men and
| placed III position where the Jury
could see II, III Was then extended upe
ward and nj ita maximum heiaht
reached shout three fnuTths nj the way
10 tlls rflilng Hoover called j. w,
steeIe a. the frat defense witness
steele. Who Nsidfs ~ caApaf