Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-17
DENNY IS BLAMED
BY FALL DEFENSE
Approval of Elk HiIIs-PearI
Harbor Contracts Charged
to Late Navy Head.

Responsibility for the negotiation and
approval of the Elk Hills-Pearl Harbor
contracts was placed squarely upon the
late Edwin DENLY, Secretary of the
Navy under President Harding, by the
defense today during the trial of Albert
B. Fall.
The testimony of the dead oficial
given during the earlier conspiracy trial
of Fall and Edward l.. Doheny, from
whom he now is accused of accepting
100000 in connection with naval oil
leases, was read to the jury by defense
counsel.
They used the testimony to bolster
the contention that 1t was DENLY who
initiated the movement resulting in
President Harding issuing an executive
order putting the administration OF the
naval oil lands in the hands of Fall,
then Secretarys OF the Interior Depart
ment. This order was based, the de-
Tense brought out, on the war plans OF
the Navy calling for a greater supply
OF fuel oil at Pearl Harbor base and
fsafs OF oil drainage on the California
and Wyoming reserves.
During all the periods of the nego-
tiations of the Pearl Harbor- Elk Hills
contracts Denby's testimony was to the
munication with the then Rear Admiral
John K Robson, chief of naval engi-
neers, and was fully acquainted with the
terms of the two contracts before he
signed them and issued the memoran-
dunn giving full publicity to the press
Testimony Read TO Jury.
The testimony of the former naval
secretary under cross-examination by
Government counsel, as well as excerpts
of his testimony before the Senate oil
investigating committee, were read to
the Jury by owen J. Roberts, special
Government counsel.
This cross-examination brought to the
attention of the jurors that DENLY, dur
ing a war council at the Navy Depart
merit. had declared that the manner OF
leasing the naval oil lands was full of
dynamite"
It do not want to have anything to do
with It," DENLY said at that time. The
Government also brought out the fact
that DENLY had told the naval officers
that he did not want to have the re-
Sponsibility for the decision of whether
leasing should or should not be done, y
and had assumed the responsibility re-
luctantly.
The effect of Denbys earlier testi-
mony for the defense was partially de-
stroyed under the long and gruelling
cross s-eXamination to which he was sub
jected at that time. Frequently he
was compelled to rely on the reply, Il
do not recall" when pressed by Gov
ernment counsel to give specific details
concerning his knowledge of the con-
tracts and the events that transpired
during their negotiation.
Testimony Is Read.
Reading of the testimony of the for
mer cabinet oflcer occupied practically
the entire time of the morning session.
At the outset Capt John K. Robson.
who was a temporary rear admiral at
the time OF the leasing, completed his
testimony.
Secretary Fall wrote to Robson early
in the negotiations of the leases. ac-
cording to his testimony, that "the old
man (meaning Doheny) was in trouble
and the Government might profit by his
necessities" The other witnesses this
morning were Rear Admiral Luther E
Gregory, chief OF the Bureau of Docks
and Yards, and Joseph A. Carey. ad-
ministrative aid to DENLY. Gregory
merely testified to the effect that the
policy of exchanging crude oil for fuel
was determined by the general board
of the Navy with the approval of DENLY
who directed that arrangements be
made for the storage facilities at the
Pearl Harbor base. This testimony was
introduced to support the defense claim
that DENLY virtually was responsible
for the contracts.
It was doubtful today whether Mr.
Doheny will take the stand before to-
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