Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-18
.DOHENY OIL FRAUD
!. RULING GIVEN jury
Magnate Admits Fall Sent
"Loan" Security in Face
of Civil Action.

BY the Associated Press.
For the first time in the long series of
criminal oil cases, the Government to-
day got before jury the fact that the
award of the Elk Hills Naval Oil Re-
serve to Doheny company had been
termed by courts in civil cases as a
fraud on the part of Edward i. Do
heny, on trial for bribery, and Albert
B. Fall, former Secretary of the In
terror.
Doheny himself opened the door for
admission of the testimony in his bri-
berry trial by reciting under a grueling
cross examination by owen j. Roberts,
special Government prosecutor, how he
accepted security for what the Govern
ment charges was 100000 bride to
Fall.
Tells of Cattle Security.
The witness said that in 1924, after
the first criminal indictments had been
quashed, Fall sent him shares in his
cattle company for security for what he
termed the loan.
He could do it then" he explained.
without being accused of trying to
cover up. as nothing in this case was
pending"
1.-The civil cases were pending and
you, knew it, didn't you?" Roberts shot
back.
Yes" replied the witness.
Didn't you refuse to testify on the
grounds that it would incr1minate your"
asked the prosecutor.
Doheny wouldn't give q direct answer
and the court directed that he do so.
Doheny broke down and wept in testi-
lying, prior to the crosS-examination
by Attorney Roberts, how naval officers
appealed to his patriotism to get him
to bid on an oil storage contract. He
was excused from the stand for q short
period.
The 73-year-old defendant broke
down as he reached point in his testi-
mony which concerned his son, Edward
L. Doheny, jr, who was killed by his
secretary about a year ago.
Testifes to Patriotism.
Doheny said Rear Admiral J. K,
Robson urged him to bid for the Pearl
Harbor, Hawaii, oil storage contract be-
power might be to the United States in
Pacific waters.
Doheny added that Robison's graphic
picture OF what might happen AZ the
result OF an attack by the power re-
ferred to nearly made me cry
Did Robson use the name of your
son in his arguments?" asked Hogan.
Yes" replied Doheny in a choked
voice.
Asked to tell what was said, the oil,
man began to sob. He left the stand
for few minutes, but continued his
testimony in a firm voice when he re-
turned
Doheny's company was given the
contract to build an oil storage project
at Pearl Harbor, and with it went
preference to the Elk Hills naval oil
reserve, which, in turn, was given to
a Doheny concern.
After the brief interruption, Doheny
testified officials told him the Pearl
Harbor project must be handled in
strictest confidence. He said they also
given the same information and asked
to bid
The witness said his officers objected
to accepting the contract and he told
them of Robison'S war-scare story and
they agreed that the company should
make bid.
Doheny then told the details Of pre-
pairing the Pearl Harhor bids early in
1922. He said he had not talked with
4 dA dpOuI bdkulS GLlG COI1GIGCts
The witness added that at the time
the Pearl Harbor bids were submitted
he only knew bid was to be sub
mitted. He was informed by wire In
Los Angeles Of details of the bid later,
he said.
The telegram and Doheny's reply
were introduced in evidence.
The telegram told of the alternative
bid, which gave preference to Elk Hills,
and Doheny testified he had never
heard of a plan to submit this offer.
He reiterated that he had not seen Fall
or had any correspondence with him.
Handled Mexican Problem.
A few days later, Doheny continued,
he returned to New York and learned of
the outcome of the bidding. At that
time, he said, all of his time was given
to the Mexican situation because Of. the
high tax placed on oil exports. AfteF re-
manning IN New York three days he laid
he again went to Mexico. When the
Pearl Harbor contract was signed on
April rs he was en- route to Mexic6 he
added. sth
Doheny emphatically asserted again
that during the time the contract was
pending he did not see, talk with or
know the whereabouts of FAN.
Later he said schedule of royalties
was worked out by Interior Dekhrt-
ment officials and presented! DdAeny
added that he was told that Fall had
seen the list and instructed tllatat be
submitted to him. His officials, he said,
still were unsatisfied with the terms of
the lease.
At another conference Of the Bureau
Of Mines, the witness testified, Robson
did most of the talking for the Govern
ment and be for his company. as his
officers refused to have anything further
to do with it. sly -
Robson Protested. 80 90
Toward the end of the conference. he
said. Robson remarked that he didn't
want the Government to get, btlked."
Doheny said he then started to leave.
but Robson agreed to the scheduleST
He continued that ne had nothing to
do with the drawing of the lease He
was present when DENLY signed H. but
not when Fall signed. Eagy1J
Doheny then explained his Testimony
before a Senate oil committed that he
expected to make $1,000, 900 outz of
the lease. He said he thought such
an amount might be realized after
80 or 40 years after an expenditure
of $150,oo0,00O.
owen j. Roberts, special Govern
nent prosecutor, began cross-examiha-
ton OF the oil man and asked about
the California oil situation in 1921. He
inquired II 1t was not a fact the Do
heny company was seeking more oil
land with view to constructing pipe
lines and reflneries, as there was no
refinery in California.
You estimated you would get ESQ.,
100000 barrels of oil from the leases,
didn't you?" asked Roberts.
II don't believe did," he replied.
Roberts then read his testimony be-
fore the Senate oil committee, In which
he said he estimated the oil at that
amount.
Roberts plunged into the 100000