The Houston Post. (Houston, Tex.), Vol. 39, No. 296, Ed. 1 Friday, January 25, 1924 Page: 2 of 14
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the HousTON.pbsri fridaY ijmM'jij
'I LOANED FALL
5100000 DOHENY
TELLS PROBERS
(Contiaaei froej Pf 1)
aid k kad ta ckeck and woaM pr
cat it t tee eotuiittca.
Nat Wm Ghrae.
Tall gare a aota ka eoatinucd
waif if is the Dokcmr officae aitkcr
U Naw Tark or Loa Angelee. Th
note will b located ke Mid and also
preaented to the committee.
Asked what rate of interest the
note fcore Dokeny replied that there
waa M stated interest aa rail aaa
left it for him to I iD in.
T vie of Mr. DohrnVs testimony
Mr. Fall will be questioned when he
aDDeara tomorrow rerardina ms state
ment of December 27 to the cuca-
mittee in which be said:
"It should be needless for me to
ay that in the purchase of the Harris
ranch or in anj other purchase or
expenditure. I have never approached
E. L. Doheny or any one connected
with kim or act of his corporations
of Mr. H. F. Sinclair or anyone con-
nected with him oc anr of his corpo-
rations nor have I received from
either of said parties one cent on ac-
count of any oil lease or upon any
other account whatsoever."
"The reason for my making and Mr.
Fall's accepting the loan was that we
had been friends for more than 30
years." Sir. Doheny said. "He bad
invested his sarings for those years
in his home ranch in Sew Mexico
which 1 understood was all that re-
mained to hhn after the failure of
mining investments in Mexico and
nine years of public service in Wash-
ington during which he could not
properly attend to the management
of his ranch.
"His troubles had been increased ir
1918 by the death of his daughter and
his son. who. up to then had taken
his place in the management of his
ranch."
Offer af La.
"In our frequent talks it was clear
that the acquisition of a neighboring
property controlling the water that
flows through his borne ranch was a
bope of his amounting to an obses-
sion. His failure to raise the neces-
sary funds by realising ou bis ex-
tensive and once valuable Mexican
mine holdings had made him feel he
was a victim of an unoward fate.
"In one of these talks 1 indicated
to him that 1 would be willing to
make him the loan and this seemed to
relieve his mind greatly. In the
autumn of 1921 he told me that the
purchase had become possible by
reason of the willingness of the then
owners of the Harris ranch to sell
and that the time had arrived when
ke was ready to take advantage of
my offer to make the loan.
"The lease on naval reserve num-
ber one was the direct outgrowth of
the contract which tke Pan-American
Petroleum and Transport company
made with the mavy as a result of
competitive bids in which that com-
pany was tke lowest bidder for the
construction of certain storage facili-
ties and the furnishing of fuel oil at
Pearl Harbor. T. H.. and in the ab
sence of that contract the lease would
ever have been executed.
The navy department through its
representative took np with us the
question of constructing the improve-
ments and facilities at Pearl Harbor
and of paying for then with the roy-
alty oil which the navy was then ob-
taining from the various leases in
naval reserves number one and two
and of filling the tankage constructed
with a large quantity of fuel aU.
Aiai-eved Naval Plaa.
T waa entirely in sympathy with
th purpose of the nary the reasons
for which have perhaps been better
explained to your committee by the
navy's representative. Admiral Rob-
ison. than I could hope to do. I
promised Admiral Bobison that our
company would at least submit a bid
to perform the work under these con-
ditions that is furnish the money to
pay for the work of construction at
the harbor and of filling tke tanks
with oil and receive in return royalty
oil at the posted field price to th
value of the money so expended. The
incidents np to th date of th con-
tract and the fact that the contract
was let on competitive bidding elimi-
ate any possibility of favor to the
company by either tke nary depart-
ment or the interior department.
The negotiations for this contract
Between the nary department and the
company were conducted by our local
Washington attorney who waa assist-
ed in determining th necessary cal-
culation! by oar California general
manager who is president of the
California company. Aa a remit of
their exchange of ideas our Califor-
nia general manager decided that the
torma of the proposed contract were
not anch as to be of any advantage
to the company and that the company
coo Id net afford to take the risk at-
tached to the performance of the
contract for the conjectural profit
that might result therefrom and ha
aa atated in a letter which ka wrote
to oar Washington attorney.
Ceaaaay Finds Uamotaatad.
. "Norther oar Washington attorney
or oar California general manager.
nor any other officer or attorney of
the company had any knowledge of
tke loan which 1 mad to Mr. r an
that being an entirely private matter.
involving in no way the company's
funds."
I'nder repeated questioning the oil
operator insisted that the only thought
he had when he made tho loan was
a desire to help an old friend who
had met with many busineea setbacks.
When Mr. Iioheny bad coactiHMd
Gavin McNab. his attorney made the
following statement:
"On behalf of Mr. E. L. Doheny I
am authorised and instructed to mate
to you the following atatement and
offer:
"While all the things stated in Do-
henv'a testimony V-ere innocent in all
intentiona Mr. Doheny does not wish
to have his company appear as deal
ing with or taking advantage in any
way of the government
"Nevertheless in order to remove
any basis for criticism of the trans
action. Mr. Doheny suggests that your
honorable committee request the pres-
ident of the I'nited States to appoint
a board of experts to examine all the
facts regarding these contracts.
Should such a board of experts report
that at the time of the making of the
contracts they were not wise desir-
able and advantageous for the gov-
ernment to make and the very best
that the government could hare ob-
tained Mr. Doheny will cause the
board of directors of the Pan-American
Petroleum and Transport com
pany to reconvey to the government
all interest in such contracts receiv
ing in return only just compensation
to his company for the actual ex-
penditures which have bceo made by
the company under th contracts
without profit."
JEFFERSON TO GET
$115000 ROAD AID
Houston Post Special.
BEAUMONT. Texas Jan. 24. An
additional $115000 has been assured
by the State to the Voth road project
bringing the total funds now available
for that work np to $240000 and bids
are to be advertised for at an early
date according to information given
out in a letter from Commissioner J.
F. McDonald. Thursday. He aaid that
final approval of tbe plans to grant
the additional $115000 was reached
Monday by the State Highway com-
mission although it is understood tbst
it has been tentatively agreed upon
for some time.
County Judge B. B. Johnson said
Thursday that the only thing to now
delay the beginning of work on the
project ia completion of soma minor
details by the State Uigbway depart
ment. and getting the present bridge
construction under way.
FLANNEL SPORT BLOUSES
As pretty as they are practical are
sport blouse of flannel in bright and
pastel colors.
WIRE FENCING
Thoroughly galvanized
in all meshes weaves and
widths for Poultry Field
or Hog Fence.
Our Prices Are Right
BERING-CORTEQ
HARDWARE CO. V
ParifiM tfcft Bleod ami
mtotfecbeetonxty.tJ
PayYourPollTax
For Your
Convenience
l'r.Chas.H.Sch!3y
specially deputized
tax collector for the
purpose of issuing
poll tax receipts
will be in our lobby
to serve you.
This service starts
today. Hours 9
A.M. to 5 P.M.
State National Bank
JUDGE BROOKS
MYER IN ROW ON
PAYING PROBE
(Continued from Tage 1)
street in front of his home and that
it waa seven inches thick oonhe outer
edge and eight or nine inches thick
in tke canter. He also stated that
he had purchased $42 worth of gravel
rroas ui contractor to ouira a anve-
wajt to ki garage. He told Myer he
did not remember the name of the
man but bad given him a check in
payment. Tbe gravel on waverlfj
street never wss rolled he said.
E. Couch. 723 East Ninth street.
Houston Heights declared that W. M.
Hutcheson of 1214 Chartre street a
member of the city engineering de
partment told him while East Ninth
street was being grsveled:
"If you want to do a service to citi-
sens of the Heights you will get out
an injunction to stop this gravel from
being laid for it is not up to specifications.''
Couch said he asked Hutcheson
why be didn't make a protest and
the" latter told him if be did bp
w-ould lose his job. He explained that
after he had talked with Hutcheson
he took a rules- and measured the
gravel in front of his house. It waa
eight and a half to nine inches thick
he declared. The contractor came
back after the job was completed and
put one more load on a stretch of
1311 feet he said.
Myer cross-examined Couch to find
out if he had ever reported the "rob-
berv" aa he termed it. Couch said
he had "told everybody be knew" but
had not made a report of the mat-
ter to the city engineer or other of
ficials.
"I didn't think it would do any
good." he asserted.
Hutcheson is no longer in the em-
ploy of the city. He has been sum-
moned to appear before the probers
today.
T. H. Lockett. 810 York street a
superintendent in Commissioner Brit-
ton's department told of inspecting
gravel put down on Lincoln and High
etrcata natter th- direction of th
city engineering departaseat.' H
atated that tha arty eogiaaar had re-
aaaxted him to make a report oo
th Lincoln street paving' which as-
tended 18 b torts beginning aaSaa
Felipe atreetJ
"Pal Dawa la Mad."
"It waa pat down in the mod. had
not been rolled and waa cut ap by
traffic to anch aa extent that it was
impossible to measure It." tha street
and bridge department man asserted.
He gave it aa his aoinloa that it
would have booa Imposaible to pot a
roller on it say tug tha atreet waa a
"bog hole" from on and to tae
otker.
On High atreet the shoulder were
"shored down" and no excavations
were mad except in a few places. h
said.
I'nder cross-examination by Myer.
he admitted that there had been a
great public need for the' paving of
Lincoln street due to the many build-
ing operations going on in the Hyde
Park district and that althongh it
took aix months to complete the work
might be classed as a "rash job."
E. A. Cochran. 1108 raachal street
a superintendent in Commissioner
Britton's department told th commit-
tee that he had not aeon th roller
used for subbase or .surface work on
any contract graveling in th North
Side. Houston Heights or Woodland
Heights during his three years' aerv-
ice with the city.
He replied to a question he- Myer
with tbe statement that the street
and bridjr department used nine to
10 inches of loose gr.nvel to get an
eight -inch compress.
"We don't have any specifications
to live up to and so we aren't as par-
ticular as we would be otherwise he
explained.
Myer asked him if be bad ever
measured any of the contract gravel
which he bad observed in tbe last
three years. He said he measured
the loose gravel put down ori" Arling
ton street at one point and that it
was between seven and eight inches
thick. He was arcomsnnied by T. '.
Waugh. street and bridge commis-
sioner before Britton. and Waugh or
dered more gravel put on the street.
MeVaa Explains Method.
City Engineer McVea asked permis-
sion to mske a statement and explain
ed that the engineering department
first make a survey ot the street to
he pared shewing the "pro file and in-
dicating tka aasoaat of cut or fill
neceaaar to bring tka atreet to grade
Whea na exeevatioa la made for a rav
el tha city is not "boat out" of any
money aa azpmweo since tae neces-
sary amount ia deducted 1 f rota the
contractor's oar.
H also explained that' nnder tha
type writ tea apecu lea t tons which sup-
ple ment tka printed specifications on
street paving contracts the contractor
or the city engineer nay elect to
have the work compacted under traf-
fic or under tka roller. Traffic will
compact gravel t a greater extant
than tha roller ho aaid.
Charte K. Horton era th last
witness called daring th afternoon.
He testified that he bad been inter
ested in inly ono small; job of atreet
paving an ring tie time covered in
the committee's investigation and that
ke had subcontracted this job.
During the morning J. N. Myer. an
employe of tha contracting firm of
Oris wold Walling testified regard-
ing the paving of Arlington street.
J. A. Callahan. (Mfl Arlington charged
that not a furrow was thrown up on
portions of the atreet before the grav-
el was put down. Rev. O. W. Thomas
f25 Arlington street asserted that
op one occasion he saw the grader
come in front of his house with the
blades reversal and throwing the grav
el me wrong way.
A number of witnesses win testify
todsy. The hearing opens at 10 a. m.
In the assembly roon. of tha police
nd fire station.
Witnesses were Questioned be Col
onel Ball. Judge Brocks and Seawall
ilver and by Homer Stephenson a
onng attorney representing a group
of interested ritiaens.
PREVENT INFLUENZA
The Tonic and Laxative Effect of
Uxatlve BROMO QtHNINB Tablet
will keep the system in a healthy con-
dition and thus ward off all attacks
of Colds Grip or Influents. The box
bears the signature of E. W. Grove.
30c. Adv.
STOP THAT ITCHING.
Vse Blua 8tar Remedy for Ecaema
Itch Tetter or Cracked Hands Ring
Worms Chapped Face Poison Oak
Sunburns Old Sore or Bores on
Children. It relieves all forms of
Sore Feet For sale by Public Drag
Co. Adr.
MELLON IAX COT
. PLAN IS DEBATED
L
IN SENATE HOUSE
(Continued from Pago 1)
stive Lona-worth of Ohio tbe reach'
lieu leader and Chains aa Green of
tho ways and meana committee for
not "rebuking th secretary of th
treasury and the president too" for
tha way in which that have insisted
on paasag ot tae treasury oiu tniact.
Palata la High Rata.
Pointing out that in 1021 various
republican leader among them Mr.
(ireen. voted for a surtax maximum of
AO per cent rather than 82 per cent
Mr. Garner asked the republicans if
tney were willing now to support the
.Meiton zo per cent maximum con
traiy to what yon did then."
"As a matter of fact- he ennrinti!
'Sn democrat hsven't any conclusive
argument tor reaucing tne surtaxes
at au. '
Mr. Garner Insisted that If th tax
revision were left to a rote of the re
publican members of th house alone
tbe Mellon bill would be defeated.
After tha Teiaa representative had
surrendered tne floor Chairman Green
told the house that in his half-hour
talk Mr. Garner had failed to present
a single argument.
PI Re" DESTROYS RESIDENCE.
Houston Post Special.
BRYAN. Texas. Jan. 24. The
home of Mr. and Mrs. Antone Krexin
ski of tha Leonard school community
lira sos county was totally destroyed
by fire on day this week. It was a
total loss there being ao insurance
on the nous or it contents.
LIONS ELECTE OFFICERS.
BKVAN. Texas. Jan. 24 The
Lions club of Bryan haa elected offi-
cers for the ensuing year aa follows;
Ir. O. A. 8earcy. president: W. W.
Chambers first vice president: Oliver
J. l'srts second vice president; Tom
G. Suber secretary; Pat Newton.
treasurer: Kev. ll 1A Hnvn. Im'
twister; P. A. Tardy lion tamer.
T
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Out today .
New Victor Records
M Victrola No. 100 li
8 $150 til
8
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DOOSlXPACtD
f Colleen o Mine tors
1 1 bo' Shadow Fall (B.
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Skadow Falf b avowedly ia popular maaaax. Both arc
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i Waltx in A Flat cTrkft ) Strid lUdnutotf I
IWahx in B Mwoc km.) SerfailUcWokogir
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Mahogany oak oc walnut
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light Vocal Selections
iFtfGMimofHoine LultvihlrWiTic 1 on
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Hflcne UttJ Girl Stay Home HevrBsrrl
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Two atragL eunf with tka uadaraUadlng which baa
SO) Hanry Ban a rawona.
Melodious Instrumental
BE a. - . 1 .1 an. ) s '
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Gui. Handiad with auperb mnairianihm and nlarad
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look for the Victor trademarks.
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A toafiak WMi Im trot Ska Toodlooo- (fro.
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SteuUlWaw with Braoka aiiiginfcwiUkayoa there.
Agricultural Steel Goods
Cotton Chopping Hooa Mattock Hoea Waodlng Hoaa Garden Cul-
tivators Pull Easy Cultivator Wheal Cultivator D Socket -8hovelg
Garden Rakes Spading Forka rjoral Tools. Bta. Big.
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or writ today for prioe aad Information.
PEDBNIR&
atocarroi. svaw ajctojoo rr wostrat. smawirost
Checks Are the Best Receipts
-X'
When you pay by check you will never hsvs
to pay a second time.
The endorsement of the psyee is legal evi-
dence that he received the money.
Your check stubs are a handy little pocket
ledger that tell you how much you hsve
spent when and to whom paid and how muck
you have left
Open a Checking Account
Houston Land &
Trust Company
Guaranty Fund Bank
Capital Surplus and Profits
$1400000
119 Main
Cor. Franklin Si
I
r - i r
)
Established 1866
.HMBsWafsW sac .
What chance
are you giving
yourchildren?
Statistics show that:
With a college education a
person has one chance in 173
of obtaining distinction in his
business or profession
With a high school education
one chance in 1606
With elementary schooling
one in 40841.
Start a sayings account for
each of your children. Insure
for them a better opportunity
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aniilsr afaila. aaaaaal mJ nlil Im ' -
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CHICAGO riK
' quickest time made by :v(h 71
SUNSHINE SPECIAL ht-.
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International-Great llcrthsrn Railroad Co.
" CITY TICKIT OFFICt
903 Texas A venue - Phone Preston 419)
PILES
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Dr. A. U Henderson
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Hard way & Catbty
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Offlat 4tS.SS.SS aaMrara Maftgaa
Mint
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The Houston Post. (Houston, Tex.), Vol. 39, No. 296, Ed. 1 Friday, January 25, 1924, newspaper, January 25, 1924; Houston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth609161/m1/2/: accessed April 24, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .