Show COMM T Ii SETT SETTLE E ISSUE IN INCASE fAll CASE Gregory Explains Alleged Misunderstanding Growing Growing Grow Grow- ing Out of Conversation With President Coolidge WASHINGTON 1 Feb Feb 4 Albert Albert Falls Fall's i challenge t he senate oil committee in which he disputed the authority of that body to examine i him in connection with n naval oil leases resulted today in a a. decision I Iby by the tho committee to postpone the hearing of all other witnesses until the question of or whether Mr Fall will vill testify is definitely settled The committee tIM did not meet to toI today today to- to day because congress congress suspended its I sessions in memory of Woodrow V Wilson On Tues Tuesday ay it will assemble assemble assemble assem assem- ble but will adjourn immediately to await action of the senate on its I request for tor reenactment of the resolution resolution resolution reso reso- lution under which it has been pro pro- Mr 1 Fall conten contended ed the committees committee's authority had expired A number of or witnesses summoned In tho the inquiry are on hand to testify testify fy including Washington brokers whose books have hae been subpoenaed to throw light on stock market op operations operations op- op in oil issues but these must mustI op-I op walt Wait until the case of Mr Fall is Js I disposed of ot I MISUNDERSTANDING ALLEGED Thomas W W. Gregory attorney general in the Wilson cabinet who was one of or those originally selected by President Coolidge to act as counsel in the tho governments government's oil cases called on the president today and gave him a letter explaining his position both In respect to possible service in tho the proceedings and his connection with oil interests Mr 1 Gregory tregory said in the letter than in I his telephone conversations with the White House prior to the announcement announcement announce announce- ment of his appointment he had n nidea no I Idea that he was accepting appointment appointment appoint appoint- ment or that the president had so construed it Mr Gregory said also that If it had been in mind at the time of I his telephone conversation with Mr Coolidge that he ever had been employed employed em em- directly or indirectly by E. E L. L Doheny whose company holds the I lease as to the California oil reserves the matter would have ended at t once President Coolidge confirmed Mr Gregorys Gregory's understanding of the telephone telephone telephone tele tele- phone conversations with the White WhiteHouse WhiteHouse WhiteHouse House a as to the Inferences to be drawn from the conversations WAY NOW OPEN The conference between the president president president dent and Mr 1 Gregory leaves the way open for the formal submission to congress of another Democrat as asa asa asa a member of the special oil counsel and the name of former Senator Atlee Atlee Atlee At- At lee Pomerene of Ohio will go forward forward forward for for- ward within the next few days In connection with Attorney Gregory's Gregorys Gregorys Gregory's Gregorys Gregory's Greg Greg- orys ory's letter President Coolidge Is Issued issued issued is- is sued a statement in which he said The statement in the letter to Mr Attorney Gregory to me regarding regarding regarding regard regard- ing the conversation between him and me over the telephone and the inferences to be ge drawn from it are correct Mr Gregor Gregorys Gregory's s letter dated February February February I ary 2 follows Mr Ir President On last Tuesday night when I Iwas Iwas Iwas was in Austin Tex you stated to tome tome I me over the long distance telephone I that you ou wished to employ me In the investigation of the leases of the naval oil reserves DENIES DENIES' ACCEPTING I You will recall that after ex expressing expressing expressing ex- ex pressing my appreciation I stated that I was not in close touch with the developments in the matter that nothing occurred to 10 me that I would prevent me from serving but that I would be in Washington Sat Sat- afternoon and would then 1 confer with you on the I had no Idea that In saying this I Iwas Iwas Iwas was accepting an appointment or that you ou so understood it I assumed assumed as assumed as- as that that would be decided when we conferred and that in the meantime I would have an opportunity opportunity opportunity to go through my books and correspondence to see whether Inthe Inthe in inthe the course of or my private practise I had ever had any employments which might stand in the way It was also my desire before definitely committing myself to confer with Senator Walsh of Montana who has conducted the investigation atlon of the tho senate committee I was very much surprised to read in the Texas newspapers the next morning that I had been appointed but did not feel at liberty to make any public statement statement state state- ment meat and consistently declined to todo todo todo do so until I had seen you Of course If it had been In my mind at the time of our telephone conversation that I had been employed employed employed em em- by Mr Doheny directly or Indirectly or at any time near or remote that would have ended the matter at once because I would have realized that however free from criticism such employment might have been it would have dis- dis me from acting as your counsel on the present occasion I have no recollection of having seen seen or communicated with Mr Doheny in my life and at that time did not recall ever over having had any business connection with him or with any com company ny controlled by him REACHES CAPITALI CAPITAL I returned to Washington as quickly as possible for the purpose of or keeping my engagement with you and arrived here this afternoon Yesterday while on the train my attention was called to a a. statement made the day before to the senate I public lands committee by E. E L. L Doheny Doheny Doheny Do Do- I heny to the effect that his company and several others employed me to represent them before the president in regard to getting permits to drill oil wells in Mexico and that the Island Oil company billed blUed us for 2000 as our share of the fee that they paid Judge Gregory for this particular work I would have been at a loss to know what he was referring to except except except ex ex- ex- ex for his mention of the Island Oil on company I remembered perfectly perfectly perfectly per per- my employment by that company com corn pany although some of the de details tans had passed out of my mind I have I now refreshed my recollection by examining data in my office The facts are as follows HAD NO CONNECTIONS In the fall falI of 1919 the firm with which I was then associated had among its regular clients the Island Oil and Transport company which Is evidently the Island Oil company referred to It was a small Independent Independent independent Inde Inde- pendent company without any connection connection connection con con- whatever so tar as I have ever known with either Mr 1 Sinclair Sinclair Sin Sin- clair or Mr Ir Do Doheny enyThe eny The Tho Island company asked me to act for it in the concerted effort then being made by American by-American American oil on companies to get the state department department department depart depart- ment to take action to prevent the threatened confiscation of their properties in Mexico the Carranza government having refused to grant them permits to drill on their own property unless they accepted the provision of the new constitution vesting title to oil and other minerals minerals min mm- in the government The purpose was to secure some character of diplomatic action by bythe bythe bythe the United States government which it was hoped would place American oil companies on the same sam footing as those of Great Britain the latter having been allowed to continue development The facts In regard to all interested companies were about the same the law laN as Jo to all was the tho same and there was general cooperation among them in attempting to obtain relief PRIVILEGES OBTAINED I gave the matter attention for tor some months and the Mexican 1 authorities authorities au au- au- au finally extended to o the American companies the privileges enjoyed by those of ot Great Britain This result was brought about in December 1919 or January 1920 and my employment In the matter ended then and there J. J t rendered a abill abill abill bill to the Island company compan for 15 which It paid At some stage of the transaction the Island company company- stated that the work I did redounded to the benefit of other companies besides itself and aId that it being a small company company it it would try to induce severa several severa of or orthe the others s similarly situated t tomake to tomake make contributions to the fee charged I understood that sonie some of them did so The etro leum company compan which was va controlled controlled con COn- trolled by Mr lr Dohen Doheny was was- one of these an and paid the Island company the 2000 referred referred- to by Mr Doheny This phase of the matter had entirely entirely entirely en en- passed out of m my mind But even at the time I never thought of my employment as an employment by Mr l Doheny or his company compan and ho he evidently did cUd not as his testimony testimony testimony mony before the senate committee as reported in press Is to the effect that he knew no nothing a about out mr my connection with th the transaction until within the last few da daysI days sI s I have never thought thou that the th ris transaction involved the slightest t necessity for apologies nor even for explanation but for far the unusual conditions which have haye arisen It is obvious nevertheless that tha the fact that one of Mr l Doheny's companies bore a part however hO in indirect in in- direct and however small of tho the exI ext ex- ex I pense of my employment by ty tile the t I Island makes it o for m mo mc to 10 ate alt as your our counsel COOn coun sel sd sd in this matter |