Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-17
DENNY IS BLAMED
BY FALL DEFENSE
AS APPROVING DEALS

-
morrow to tell his story Of the 500. 900
which the defense claimed he loaned
to Fall through friendship.
The defense made the most of an
important inning yesterday afternoon
when 1t got before the jury the story
OF the Nays alleged fear of a Pacific
war in 1921. During the former con-
spiracy trial this story of how Doheny
was persuaded to bid on the Pearl Har-
bor-Elk Hills contract had a major
bearing on the outcome OF that trial.
Capt. John K. Robson, retired. who
held the rank of chief of naval engi-
neerS at the time of the oil leases, was
the witness. Examined by defense
counsel, he related how he had pictured
the horrors" q war might bring to the
Pacific Coast and had begged" Doheny
to provide oil facilities for the Navy at
PearI Harbor for the security Of the
Pacific mainland.
The oil man became considerably
excited" Robson testified and promised
the Government would have at least
one bid. He said his company would
0iu at his insistence, II necessary" the
retired naval officer said, and If so the
bid would involve not cent of profit. /"
Additional testimony was produced
by the defense to show that Fall had
been made acquainted with the need
for protecting the Pacific Coast before
ne entered the lease negotiations,
Shortly after Robson was appointed
to the engineer post in the Navy De.
partment he said he had informed Fan
that 1T is essential to our naval se-
CURLY to have naval bases equipped
with battleship fuel oil In Hawaii. ''ssss~
Doheny. r., Arranged Conferences.
49,
with Doheny was arranged through the
oil mars son, the late Edward L. Do
heny, jr.. who had served on Rob-
isoTl's ship during the World War.
At the outset of their discussion
OF the Nays needs Doheny had told
him that his company was not pre-
pared to enter upon the Pearl Hsrbor
work
Il urged him, not as matter of
business, but as a matter Of public
service, to bid on the oil tanks" Robi-
son testified. II quoted a good many
statements dealing with the more or
less doubtful condition of interna-
tional affairs, and said that war might
come to the Pacific Coast.
Robson, who was retired with the
rank of captain by President Coolidgs,
was the right-hand man Of Secretary
Edwin Derby in dealing with the Elk
The Government counsel put Robson
through stiff croSs.examination. Rob-
erts drew from the witness the assertion
that he was surprised at request by
Fall that the Pearl Harbor contract con-
tain q clause giving Doheny's COM
panies a preferential right to leases in
the Elk Hills oil reserve.
Prior to RobiSons appearance, the
Government had drawn from H. Foster
Balm, former director of the Bureau of
Mines the admission that Fall had
caused it to be understood in the de-
partment that no oil deal could be
closed without submitting 1t to him and
that papers in the Peard Harbor- Elk
Hills contract were submitted to him
before the contract was signed. These
two bits of testimony served to Offset
other information placed before the
jury to the effect that Fall In Three
Rivers. N. Mex, had little to do with
the negotiations or the final settlement.
A number of character witnesses were
introduced on behalf of the defendant
at the afternoon session. old friends of
FAN, who testified as to his general high
reputation for honesty and integrity
prior to the oil cases.