The Register from Santa Ana, California • Page 2

SANTA ANA DAILY REGISTER, TUESDAY EVENING, OCTOBER 18, 1927 PROSECUTION IN OIE CONSPUE mmm Story Of Teapot Dome (Continued Frerr. Page 1) Fell's Nett Mexico ranch three months before the lease granted and that later Liberty Bonds, of the profits of an ofl deal in which both defendants were allegedly involved, were found in possession of ranch manager. Martin VT. Litleton. of the defense High points in the story of the famous Teapot Dome oil reserve in Wyoming leading up to the trial of Albert B.

Fall and Harry P. Sinclair in Washington on criminal charges of conspiracy to defraud the government, are given herewith in chronological order: April 30, Woodrow Wilson, by executive order, created naval reserve No. a geologist nickname originated from the teapot shape of a nearby rock formation. The lands had been withdrawn from the public domain in 1909 when they arere found to contain oil. The reserve comprised 9321 acres in Natrona county, Wyoming.

June 4, enacted giving the secretary of the navy power to utilize reserve oil to prevent drainage. May 31, Harding issued executive order transferring jurisdiction of naval oil to interior department. October, of Interior Fall discusses with navy and interior officials report of C. H. Wegemann, one of the geologists who discovered Teapot Dome, indicating danger of drainage.

November E. Humphreys, wealthy Texas oil man, his attor- lawAere, said he and his colleagues ney, former Senator Charles S. Thomas: H. M. Blackmer, chairman of would furnish the side of the board of Midwest Refinery company, a Standard Oil of Indiana the (Teapot lease) picture to make subsidiary; James E.

president Prairie Oil and Gas company, rai I rrtorw on en of It He described the growing need of the navy for fuel oil, to be drilled from its reserves, and cited as a precedent for Teapot lease the leasing by President Wilson's secretary of Interior, on March 3. 192L of 6400 acres of Salt Creek oil land Immediately north of the Teapot reserve. Leases Required Drilling The leases on this land required drilling, he pointed out, adding a short exposition of how oil could be drained from underneath land by nearby wells. The indications were the defense. OF U.

S. I SEE DISMISSAL OF would set up a plea that the lease was vital so and Sinclair conferred in Blackmer's New York hotel room on sale of Texas oil. November Trading Company, incorporated in Toronto, Canada, by H. S. Osier, Toronto lawyer.

November in New York executed contract for purchase of 33.833.333 barrels of oil from Humphreys by Continental company at $1.50 a barrel, Sinclair and Stewart guaranteeing one-half of contract on behalf of Sinclair Crude Oil Purchasing company, and the other half for the Prairie Oil and Gas company. On the same day the Sinclair and Prairie companies entered joint agreement with the Continental company to purchase the oil obtained from Humphreys at an advance of at least 23 cents a barrel. December and bis lawyer, J. W. Zevely.

arrive in a special train at the Three Rivers N. ranch home of Secretary Fall and discuss with him possible lease of Teapot Dome. February, submits bo Fall in Washington tentative plan for leasing Teapot Dome. April Dome lease executed with Mammoth not get all the ail by drainage. Littleton also indicated that his side would try to show that former Secretary of the Navy Denby was t.j« original proponent of the lease.

Such a defense would tend to taka some or all of the responsibility from shoulders. The jury Is made up as follows: No. a I temporary Annella Bailey, about 30, piano company clerk. No. Bernice K.

Heaton, about SO, telephone company instructor. No. P. Grenfell, 26, unmarried, electric cable splicer. No.

H. Goucher, 89, Urb salesman. No. J. Herzog, 56 automobile sales manager.

No. C. Flora, 89, Ice company sales agent, No. P. Kern, 32, bakery route supervisor.

No. W. Holmes, 84, department store floor manager. No. J.

Costinett, about 55, tailor. No. Glascock, 47, clerk. No. J.

Kidwell 81, leather worker. No. Holt, 63. retired stone mason. The Jury was sworn in and seated at 12:17 p.

rn. El other fields would 0J1 company, Fall and Secretary of the Navy Denoy signing for the government. April of Senator LaFollette, Republican. Wisconsin, providing for investigation of this lease and the Elk Hills lease granted to E. L.

Doheny, adopted by U. S. senate. aaa May for the Continental company, obtained $300,000 in first Liberty bonds in New York. May T.

Everhart, son-in-law and ranch foreman, appeared In Pueblo, with $230,500 of the bonds purchased by Osier, identity later being established by checking numbers. The bonds were deposited in Colorado and New Mexico banks and part of the proceeds used to meet debts against Fall's and cattle company. February 9. States and Mammoth company executed supplemental contract under which company agreed to build for the navy fuel oil storage tanks at Atlantic coast point, and to fill tanks with fuel oil, payment to be in navy royalty oil. March resigned from President Harding cabinet.

October first witness before lease investigation by senate public lands committee, said he was proud of leases. October said he had not investigated leasing fully. (The senate oil investigation continued until May 14, 1924, disclosing many details of leasing and a statement by Zevely that he $25,000 to Fall and advanced him $10,000 for a trip to Russia, which the former secretary made with Sinclair in 1923). February 8. adopted by congress asserting leases executed "under circumstances indicating fraud and corruption and without authority, and directing President Coolidge to appoint special government counsel to start suits to annul leases and bring prose- Mareh 13 Civil suits to annual Teapot Dome lease filed in Cheyenne, federal court, and similar suit to annual Doheny lease filed in Los Angeles.

june 30 Fall and Sinclair indicted by District of Columbia grand Jurv on charges of conspiracy to defraud the government; Fall and Doheny similarly indicted; Fall Indicted on charges of receiving a bribe; Doheny and his son, E. L. indicted on charge of ghing a March 9 Dome civil suit trial started in CHejenne before Judge T. Blake Kennedy. It lasted three weeks and was marked bv sensational testimony disclosing for the first time the governments charge that the $230,500 in Liberty bonds passed from Sinclair to Fall.

The fact that Everhart received the Continental bonds was established from evidence found since the oil investigation by government detectives, but connection with the transaction could not be definitely proved. Judge Kennedy took the case under advisement and several months later announced a verdict dismiss ng the government suit for want of equity holding the leases were authorized and that there was no fraud or corruption. April Justice Walter I. McCoy, District of Columbia supreme court, quashed Fall-Sinclair and Fall-Doheny conspiracy indictments because of unauthorized persons in grand jury room. May Fall-Sinclair and Fall-Doheny conspiracy indictments voted by District of Columbia grand jury.

July 3, Coolidge signed Walsh act, providing special appeals from District of Columbia supreme court in criminal cases not yet tried. August court of appeals at St. Louis reversed Judge decision in Teapot civil case, holding leases obtained by fraud and corruption. October Walsh act, circuit court of appeals dismissed from Fall-Sinclair and Fall-Doheny conspiracy indictments and the Sinclair contempt indictment- The Fall-Sinclair and Sinclair indictment decisions were appealed to the U. S.

supreme court, which denied the defendants a review of the validity. November and Doheny arraigned and pleaded not guilty. November and Doheny went on trial. December and Doheny acquitted by jury. February 28, U.

S. supreme court held the Doheny Elk Hills naval oil reserve leases Invalid on the grounds they were corruptly made without proper authority from congress, upholding the decisions of district and appellate court in favor of the government in this case. March went on trial on charge of contempt of the senate by a jury. May government witness in testimony on Continental deal, died from accidental gunshot wound in Denver. May conspiracy trial postponed from May 23 to October 17, to give government time to subpoena as witness.

May sentenced to serve three months in jail and pay $500 fine on senate contempt conviction; appeal to circuit court stays execution of sentence. july Hitz, in District of Columbia supreme court, upheld bribery indictments against Fall and against Doheny and son. October U. S. supreme court cancelled the Teapot Dome lease, asserting the evidence persuasively indicated conspiracy.

Fall was denounced as a public The St. Louis decision ordering the cancellation on grounds of fraud and corruption was affirmed and the high court held also that the lease was "unauthorized and October and Sinclair go to trial on Teapot Dome conspiracy indictment. JI (Continued from page I) virtually IOO per cent effective and a walkout ordered for 60,000 textile workers on October 29, there is scant possibility of any international discussion during the session. Added to the labor problem is controversy over the proposed educational reform bill. Certain alarmists have predicted the Reichstag would be dissolved should the bill be defeated.

pose of the bill is to provide indirectly for the teaching of religion in schools. With the powerful Catholic party determined to pass the bill and other parties equally determined to defeat it, a deadlock is forecast. While the strike has not affected German industry as yet, fears are expressed that it may spread to other mining regions, thus halting power plants and paralyzing man- ligaturing. Officials of the strikers held petty political differences between the ministries of labor and economics were responsible for the failure of arbitration, which resulted in walkout of the coal miners. Democratic and Socialist members of the Reichstag maintained the situation was so serious that they would make the strike the principal topic for debate during the session.

(Continued from PsgeU er that more people are buying automobiles Coal transportation is not as heavy this year as last, because consumers last year expected a coal strike and were laying in heavy stocks. They are now using up those stocks, it was pointed out. The president has been informed the coal strike has been settled to a very great extent; that Illinois and most of the Indiana mines and a considerable portion of the mines In Ohio are now working. With the exception of cotton, agricultural crops are fully as good as last year, the White House said. Prices Are Higher There has been some increase of production over expectations because of warm fall weather.

The price is not as high as it was early in the season, but is still higher than last year. Cattle prices are higher but the sheep and hog markets are not in a good condition. The official Informants attribute the high cotton crop this year to ravages of the boll weevil. During the last few years the weather has been such that little attention was paid to the boll weevil, it was said, and Mr. Coolidge believes insufficient precautions were taken against the weevil this year.

Indications are that automobile production should increase and while there is some unemployment, reports to the labor department generally Indicate there is no decrease in employment this year as compared with last year. Sales by mail order houses have materially ipcreased, indicating to Mr. Coolidge that there is a larger buying power this year. He believes the better conditions of agriculture should result In a somewhat greater buying power in the farm regions. The secretary of the treasury reported there is an abundance of funds available and that credit conditions are good.

Exports and imports are keeping up and exports are larger than last year. Value of imports has fallen off, but volume is being maintained on a creditable scale. Labor department statistics reaching Mr. Coolidge show there were but 27 strikes in progress this year, compared to 50 last year. While in Pittsburgh last week, Mr.

Coolidge was Informed that the Pennsylvania railroad is buying 300,000 tons of steel rails In one order. Railroads, he believes, need replacements to keep up with modern methods of efficient transportation. This resume has convinced the chief executive that there are no weak places in the present outlook and he is convinced present con ditions will continue. (Continued from page JI) called for trial November 21. The announcement indicated the end of the most unusual misdemeanor case in the history of Los Angeles, for late yesterday charges against Councilman Carl I.

Jacobson, with whom she was said to have were dismissed. Dismissal of the case against the city official came on recommendation of Prosecutor E. J. Lickley, who said it was the custom of the city to try misdemeanor cases but once. The Jacobson-Grimes case first came to public notice August 5, when the councilman was arrested in company with Mrs.

Grimes in her home. Police officers, who made the arrest, claimed Jacobson had gone to the home for Immoral purposes. Jacobson alleged that he was the victim of a police frame-up and that he was with Mrs. Grimes only because she asked him to call to discuss street assessments. He asserted that she aided in setting the police trap for him.

He was brought to trial on September 5, but the Jury in the case failed to agree and a retrial was scheduled for October 25. The case attracted unusual Interest because Jacobson always has been leader of the reform element in city council. (Continued from page 1) ar- CANNED REINDEER TACOMA, Oct company In Nome, Alaska, has purchased a refrigerator ship and canning machinery and intends to place reindeer meat upon the tables of all America. The concern owns 50,000 reindeer, which will be slaughtered and canned by the crew traveling on the FOO MNT ADS impatience before Miss Elder rives in Paris. The Lima is due to halt at Agra De Heroisme, Tercelra Island, Wednesday, and at Ponta Del Gada, St.

Michaels in the Azores before It sets out for Funchal, Madeira, where It is due Monday. May Get Fast Boat At Funchal, Miss Elder hopes she may be able to get a fast boat for England or Europe. Otherwise she will stick with the Lima until the little steamer reaches Lisbon, Portugal, October 26, and Miss Elder and Haldeman decide whether to go by airplane or train to Paris. Rain, which kept Miss Elder indoors during most of her stay and gave her the slight cold from which she was suffering, resumed some time before she boarded the Lima. The rain, however, did not lessen the enthusiasm of the crowd.

Many of the farewell crowd bore flowers. Miss Elder thanked people Individually and collectively for the honor done her at Horta and waved her hat as she went below to a cabin. The rain that greeted Miss departure delayed the crew of the Junkers seaplane D-1230 that was to have taken off at dawn for Newfoundland and New York with Mile. Lillie Dillenz, only other woman surviving transatlantic flyer. (Continued From Page 1) said, had pursued Gomez for nine days without finding trace of him.

All they had to offer was the news that at last report Gomez was making for the Huastusco district, still In the Vera Cruz mountains, but only 50 miles from the town of Vera Cruz and the chance of escape by sea. BE TESTED FURTHER (Continued From Page killed yesterday while welcoming them to this city. The French air heroes, who have flown 6000 miles from Paris in less than a week, will take off Wednesday morning on the last of their flight to Buenos Airee, Argentina. Coates and LeBrix had planned to etart their flight this morning, but crash changed their schedule. Aa they approached Rio De Janeiro yesterday, after a short flight from Caravelle, where they haul remained Sunday night, seven planes went out to greet them One plane, a Brazilian army Baguet, made a second flight after the French landed and crashed In flames at Campo Alfonso.

Its crew of Silver la and Lieutenants Silva and killed. BIG IAX DECREASE (Continued From from railroad securities will be exhausted this year and back tax collections will drop to about $150,000,000 annually, it was stated. Cases pending before the U. S. board of tax appeals involve $500,000,000 and the government pects 60 per cent of them to be settled in its favor, thus swelling the future surpluses.

Officials indicated the treasury would recommend a one per cent reduction on the present 13 1-2 per cent corporation tax, a slight cut in maximum surtaxes and elimination of many of the remain- ing taxes. Recommendation of Chairman Smoot, of the senate finance com- I mittee, that taxes be cut $350,000,000 was viewed as excessive, i Officials said the cut could total $250,000,000 without the govern- ment running into a deficit but any figure over this amount would mean financial difficulties. THEY FIND IT PAYS IRVINE, Ky- Oct- D. Rose, 85, came to town the other day for a little shopping. He I bought a coffin, selected an Iron fence to put around his grave, talked over terms with the under-I taker and gave instructions aa to how tha funeral was to be carried out- Rose says he has no inten- tlon of dying soon, but Just wants to be prepared.

The custom la Almost universally followed by mountaineers. I snEsnns grocery 2nd and Broadway SUGAR IO lbs. with purchase Specials for Wednesday Thursday Friday AU 10c BREAD 8c with purchase I thejoys of greater leisure us do the family wash easy, thrifty ray M( leisure to tha modern woman mum more time for tile children, for more agreeable household duties, a ad for the Korea of other interests which make up her own little world. Thew ara duties far more desirable than long, some hours spent over the family washing. Let ut do your washing! Just taka rn moment to another to bundle up the yow washday worries ara over.

You will ba astonished at its snowy whiteness and its low coat. Santa Ana Laundry IIH East Fourth Street Phone 666 Santa Ana, California Launderers Dry Cleaners GILES WONT GIVE ELKO, Oct. damaged Hess-Blueblrd airplane of Capt. Frederick Giles, Australian flyer, who plans to fly to his homeland by way of Hawaif, was dissembled and loaded today for shipment to San Francisco for repairs. The plane was badly damaged yesterday when Giles attempted to take off from the short runway here.

The plane hit a four-foot ditch, did a ground loop and smashed. Giles jumped to safety. The propeller was broken, the under fuselage damaged and the left wing and left wheel smashed. A new wing is being made in San Francisco. COYOTES CAME BACK COZARD, Oct.

Atkins had a thriving coyote farm near here until someone cut the fence surrounding his place. All of his 63 animals escaped and Atkins believed his business was ruined. But neighboring hen houses must have been securely locked, for when fading time came 41 hungry coyotes returned for their meals. 60 WIVES IN 30 YEARS CAIRO, Egypt, Oct prominent resident of Tantas, near Cairo, has gone to trial to determine what became of the 60 women whom he married in 30 years. Some of his wives were lost through divorces allegedly forged and others died mysteriously, authorities say.

key, a grivet monkey and lemurs, were ill in the New York Zoological park. They had "cage paralysis, a disease very similar to rickets. Doctors treated them with ultra-violet rays for three and were rewarded by seeing them become lively again. til 4 Renew Sp vJ your faded DUCO AUTO SHOP 410 West Fifth St. RAYS SAVE ANIMALS NEW YORK, Oct.

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