THE OIL SCANDAL.

Hokitika Guardian, 8 March 1924, Page 3

THE OIL SCANDAL.

LIN'FLY SCENES. AUSTRALIAN AND N. 7. CAULK ASSOCIATION. (Received this day at 9.45 a.m.) WASHINGTON. March 7. Before the Senate Committee. Senator .J. T. Heflin, followed his sensational attack upon the helling proclivities of Attorney-General Dougherty hv alleging that President Goolidge "as the person referred to as the principal in certain messages sent to Mr .Mel.eao. the millionaire piibli.-her. practically guaranteeing there would he no rc.-ignat inns from the Cabinet. When the President's telegram to si lit to .McLean on Mr ('onlidge’s I .inimmediately issued an explanation that 't was in response to congratulations sotn to McLean on Mr Coolidge's Lincoln Day address, mentioning that the Senate had refused the demands for Mi Denhy’s resignation. The message was dated Echninrv 12th. and it wes

•ocu evident that some slip had occurred as the Lincoln Day address was not delivered till the evening of the 12th. -Mr Coolidge. therefore, issued a new statement correcting the first, explaining the telegram referred to ani.iher personal limiter. A wild, session of the committee followed, several senators accusing each other of giving infi rmation to president Coolidge with t lie intention of dragging him into the e.ee. That, was how he came to have In- reply ready. Later, the whole matter was ventilated on the floor of the Senate.

Senator Harrison made a vielcnl at luck or President Coolidge for intimacy with Mr .McLean. Another development was the refusal of I lie President to furnish I lie Semße with ligurcs of the income tax paid hv Doheuy Sinclair, McAdoo and others. Senator Lodge came to tho President's rescue, declaring the exchang, of telegrams with McL'niti was ;ili-u----lutelv innoeenl.

Scantnr Harrison declared that Mi Coolidge himself must make a personal explanation before the public will ho satisfied.

It was reported last mouth that telegraphic codes belonging to the secret service had been used by a noted newspaper published for the purpose ol communicating with certain individuals, the intention living to prevent examination hv the Senate commit tee.

The revolution by Mr Edward Doheny, head of the .Mexican Petroleum Company, that. -C2)l.tviil. money invested hv Mr Albert Fall. Minister of the Interior in the Administration ol the late President Harding, in his ranch property in New .Mexico, who "loaned by Dohen.v, sent ill cash in a hag without the slightest Stipulation regarding interest or security, hut all lor the sake of friendship, represents one ol the higgesl Government seundnl.- of recent. times, which limy possibly interfere with the fortunes of the Reptibli can administration at the torthenming elections (states a Washington correspondent). A few weeks after the Doheny loan was made ncgol i-t i ions totleasing oil reserves in the West were under wtit . ami " •• re ldt ■ I '.I ne

golinlioii. the I'Mn-ny imerc-t*. ,-d control of a riel Id in the Los Angeles district. ollieially known as Naval Reserve No i.

Investigation shown lh.nl the money was obtained from Mr Edward Doheuy. to whom Air i'.oli. while r-erretury "f the Interior, had previously given the lease of the Naval Hd. Reserves in California, from which Mr Doheuy said he expected to clean up £20.0: Kl.fi: HI. Noliodv here all'eets to believe that Mr Doheuy and Mr Fall, old-time friends, were victims of a mere awkward coincidence.

j„ Ids- evidence before- Ibe Senate Committee. Mr Dolieny made ii perfectly plain that the loan * rom bun to Mi- Fall of £2O,(MH) involved no financial embarrassment wimiover. In fact, be intimated that he was mi well placed financially that ‘‘the loan was to me a mere liagalelh-- no more, in fact, than CA or £IU to an ordinary individual. Certainly a loan of £•» £|(! by one individual to another, said Mr Dnlimiy. speaking in dollar extraordinary, and. believe me. the J,,.,,, ~1 L'dIUHC) from me to Mr Rail was no more extraordinary. 1 admit of I nurse, tlml my loan was greatly affected 1: v Mr Kail's extreme- peciiMi .,,v , ircuin- iaiK-cs. resulting from a long period -in fad. a Lfe-time-n! futile ell ortLi further prool of his opnleiiec-. Mr Dc.lm.iy -aid: “I rc-al-lie,l llieic are vc-rv lew men Imv;n,r £->i,,nli’l to spare out of thc-ir business, Put I am one of the lew. and if | I to lend Mr Kali £9!i.‘MH>. sue., an act would not interfere with my loi.-im-s-i or even if 1 wanted to lend 1,;,i, £■_•!)::.tin:.." In answer to questions, il magnate admitted that he knew perledU well that Mr Kali was eliargi'd with the administration ot all tpi. ,i 111 >ll c • ml land- in Amenea. but that fact, did not mlliienc-e him in any way in lending Mr Kail cash "ill,out security.