Article clipped from Fond Du Lac Commonwealth Reporter

«•*:*: -• :v--vX,,A:*.•:•:•;www:.v.*;* ,.■.Fv.v,,.. vX.v:........ v.. .w.v .w,......-...a.w..:,v.,,v.v ., , , ■ vMl■wW,W.W/P. v ?x*.v ,v5/xv:w.'v. v.■•. •* -v,v Alt;lt;vv*v*w.v. w.-?.*Trials Clear Doheny Of Conspiracy, Bribery Charges• «1Murder Of Son,In Court MaiBy STAN GO RMSlt;Qf the Commonwealth Reporter)VyTni President Warren Harding dead and Calvin Coolidge in the White House, the Senate Committee on Public Lands and Surveys, late in 3923, began what many regarded as a “muckraking” investigation into the leasing of naval oil reserves in California and Wyoming.Given the task of groping through the mystery of whispered scandal was Sen. Thomas .1. Walsh, a sober-faced, bushy-browed native of Two River, Wis., who was an honor graduate of the University of Wisconsin, His strong face masked the fact that in many instances he was shooting blind in attempts to learn the details, and he moved cautiously.VThe first witness was former Secretary of the Interior Albert B, Fall, who had retired from Harding’s Cabinet earlier in the year to a more comfortable life on his ranch in New Mexico. Fall, a longtime friend of Edward L. Doheny. the Fond du Lac-born oil baron--who had leased the Elk Hills reserve while Harry7 F. Sinclair was obtaining rights tothe Teapot Dome reserve, wasan annoyed, impatient witness.Sitting straight in his chair, his blue eyes fixed on Walsh and his expression an almost permanent scowl, Fall defended the leases. He said the oil storage tanks that Dohenytainly do not think that it is.” “I only want the facts,” Walsh replied.“Well you cannot get facts out of me by citing this asbad policy or that as goodpolicy,” Doheny snapped,“Policv is not fact. Don’t ask »me about conclusions. Ask me about facts and we can go right along.”Another member of the com-- .r,*i '*«fTHIS MANSION in Los Angeles was home for Mr. and Mrs. Edward L. Doheny. It was merely one of many lavish homes in the Chester Place area of Los Angeles owned by the man who was raised in a small house on Rose Avenue in Fond du Lac. Doheny died in this home in 1935. The photo is from a 16-page brochure prepared by Ruth and Charles Powell for a tour of the premises by historical society members and architects.in Washinptnn kppn him in-On Tsm 90 1G94 TVnfoemvHe submitted a prepared statement, which said . . the Joan had no relation to any of the subsequent (oil lease) transactions . .He tried to make his position clear in unmistakable terms.“This sum was loaned to Mr. Fall by me personally,’’ the statement continued. “It was my own money and did not belong in whole or in part to any oil company with which I am or have been connected ... I loaned him the money because he has been a warm personal friend . . . especially as I could easily spare the money.”In addition to offering his statement, Doheny had his lawyer reveal that he would open his contracts to a review by any board of experts the government wished to select. If the board decided that his agreement in regard to the leases was not the “best the government could have obtained,” he said cancel them, asking only that his company be reimbursed for expenses already incurred.Walsh questioned Doheny about the loan to Fall. The oilman observed during thispeople to know that there was no corruption between Ed Doheny and me in those leases. I don’t want him crucified. He didn’t do anything wrong . . .“One thing I regret in all this is that I said I did get money from McLean, and I am ready to apologize for having said it.”Doheny, apparently saddened by the humiliation of his old friend, commented: “If it will remove all such suspicion from A1 Fall I’ll go back to the directors of my company and ask them to re-convey the lands to the government.”Four days later, Navy Secretary Denby gave his views to the committee. He was under fierce criticism.“I am convinced of the legality of the leases,” Denby declared. “They are absolutely in the best interests of the United States.”Walsh later commented thatDenby should be “driven from office.” He added: “A great crime has been committed . . . The structure of our government rocks upon its foundation in consequencecheck but I later paid him back.”“Why did you tell us you got the cash when your son really got it?” he was asked.“Well,” replied Doheny, “it was the same thing.”4 IndictmentsThe investigation into Sinclair's lease of the Teapot Dome reserve in Wyoming was just as thorough as that conducted into Doheny’s affairs. On June 30, 1924, a grand jury of the District of Columbia handed down four»•v:4 \'SINCLAIRFALLindictments against Fall, Doheny and his son, and Sinclair. Doheny and Sinclair were charged with conspiracy to defraud the government, Fall was charged with taking a bribe, and the Dohenys were accused of making a “bribe” payment.In a U.S. District Court civil■of his Pan-American Co.— the majority of the voting stock— for $37,575,000. He retained his California properties. This deal, regarded as the equivalent of a Pan-American merger with Standard Oil of Indiana, was termed “the largest oil consolidation in the history of the industry.” Their combined assets were valued at close to $584 million, with securities on the open market placed at $787 million.*r\N NOV. 22, 1926 Doheny ^and Fall went on trial forconspiracy to defraud the government. Defending Doheny was Frank J. Hogan, 49, who reportedly was to get a fee of $1 million. Prosecuting attorneys were Owen J. Robertswand Atlee Pomerene.Doheny, his wife, Carrie Estelle, and son, Ned, were besieged by photographers, who were barred from the District of Columbia courtroom. Doheny, looking pale and wearv. had his infected leftmJ .arm in a sling.Religious Issue Hogan told the court his cli-(Con. on Pg. 25, Col. 1)
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Fond Du Lac Commonwealth Reporter

Fond Du Lac, Wisconsin, US

Tue, Dec 14, 1965

Page 18

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Debbie R.

NA, 29 Jan 2022

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