OIL SCANDAL.

Hokitika Guardian, 15 March 1924, Page 2

OIL SCANDAL.

U. 8 HUM AN AND N.Z. CAULE ASSOCIATION STILL FRESH CHARGES. NEW YORK, March 13 According to a telegram from Cheyenne, Wyoming, Mr Pomercne 'Roberts appeared at the Court and presented a petition bristling with sensational charges that ex Minister Fall conspired with certain oil magnates to defraud the Government, and asking for the cancellation of the leases in question. The petition cites instances of fraud and bribery in such detail as to foreshadow criminal actions, which will follow, voiding the present leases. Jr is understood that an arrangement will ho reached whereby the extraction of oil from the so-called “Teapot" area will he continued undeT the present management, hut the proceeds will he impounded until the Court renders tt decision. A similar suit to revoke the Navy’s Californian oil leases will be filed in Los Angeles this week. A NOTH ER SENSATION. WASHINGTON, March 13. The Rrookhar’t Committee has unexpectedly opened an investigation into tin' administration of just ire by Attorney General Dougherty, which i.s developing sensational disclosures.

The first witness was Miss Roxy Stinson, the divorced wife of Jeff Smith, the most intimate friend and associate of Dougherty, and the man who suicided last .May in Dougherty’s apartments, but who at the moment of his death made his wife the confidant of his dealings with Dougherty. She stated Smith frequently presented her with many shares in oil stock which he obtained without cost, and which -he understood to he part- of joint donations to Smith and Dougherty. She further told of Smith and Donghterty’s joint speculative account-; in western brokerage bouses, aggregating several hundred thousand dollars, adding that Smith deposited with one broker 11.000 dollars for her benefit. hut since Smith’s death Dougherty had seined the account. The Committee was in an uproar as , Dougherty’s counsel protected against ihe inclusion of this testimony, but Senator Wheeler * livid with anger) renlici; ' I will take none of your abuse. This testimony will stand, and hooks and ledgers corroborating it will arrive to-morrow.” NEW YORK, March 13 The Court has granted a temporary iiiimicth.ii restraining the Oil Companies from operating under the "TeaiK,(" lease, and appointed receivers pending the termination of the litigatiion. It gave the companies thirty days wherein to tile a response.