| Show Hot Oil 01 1 10 Cents a Barrel Graft Led To Cr Crash sh of Louisiana Political Empire Is 15 the third of a a series s reviewing rescuing and clarifying clarifying- developments in Louisiana's political political po po- po- po scandals By TED II H. MALOY l NEW ORLEANS UP UP Oil Oil the black gold beneath LouIsiana's Louisiana's Lou LoU- slann's soil soll played a powerful part In the crumbling of the political empire that Huey Long built builL Out of the controversy over oil came the indictment of two of i ithe the three heirs to whom Long willed his kingdom And out of it ft too came death for Dr J. J A. A Shaw director ot or the minerals minerals min mm- division of the state conservation conservation conservation con con- department He committed committed com corn suicide in the midst of the federal Investigation Among the federal statutes there Is a law Jaw called the Connally Connally Connally Con- Con nally hot oil act Hot oil Is defined as tu oil which Is produced In violation of state Uon orders orders orders or or- or- or ders and shipped In Interstate commerce 50 30 New ew Oil on Field Dozens of new nev oil on fields have made Louisiana a major factor In the busIne in the last lait 10 years More than 50 new fields have hac been opened In an attempt to stabilize the price of oil various various var var- ious iota states have entered into a production compact All AU attempts attempts attempts at at- tempts to bring Louisiana into that compact have hae failed and former fonner Governor GO Richard Leche che repeatedly Informed the other i states that Louisiana was holdIng holding hold hold- ing its production within the U. U S. S bureau of mines' mines estimate of monthly needs On Aug 7 a federal grand jury guided by U. U S S. S District Attorney O. O John Indicted indicted in indicted In- In Leche and Seymour Weiss another of the triumvirate to to- whom Long willed his political empire on charges of conspiring to violate the Connally act A similar indictment was returned against Freeman W. W Burford president of the East Texas Refining Refining Refining Re Re- fining Co Dallas Texas Production Increased The specific charge was that the Louisiana conservation department department de de- de- de ordered production from 13 wells on the Sexton lease of the Rodessa field In northern Louisiana Increased from tram barrels a day to 20 The indictment alleged that barrels of that oil then were sent to Burford's refinery and that Weiss collected 10 cents a barrel on it Jt and split the money with Leche Lethe In addition to the thus derived the indictment alleged that was paid to Weiss for helping Burford sell his East Texas Pipe Line Une Co to the United Gas Co of Shreveport Weiss and Leche JAche according to the government paid to toan toan toan an attorney and split the remainder remainder re re- re- re of the At a hearing In Dallas Shaw testified that he was called to Weiss' Weiss office In March 1936 and was asked to sign an order Increasing the production on the Sexton lease He added that Robert Robert Robert Rob Rob- ert Maestri then conservation commissioner and now mayor of New Orleans ordered him by telephone to sign the order Shaw said Mid he signed anything they put before me except an order to hang me District Judge T. T Whit Davidson David DavId- son of Dallas refused to send Burford to Louisiana and said that Maestri and Shaw are Just jUt Justas jUtas as guilty in this transaction from the face lace of the record as are any other men nien Indicted in this case Shaws Shaw's nerves broke under the strain and on the night of Aug 20 he shot and killed himself In his New Orleans home depriving depriving depriving de de- de- de government lawyers of the benefits their case might receive receive receive re re- re- re from examining cross him when the Indicted men are I brought to triaL The validity of the Connally act has never been tested In the supreme court and many oil men believe it is unconstitutional At present prent It is a powerful weapon in the federal governments government's in investigation In- In of Louisiana political affairs Next zt st New e Messiahs lahs In the Promised Land DIRECTS LOUISIANA PROBE tu- tu f 14 1 t N I J c C C A Death threats threats one one a letter containing two cartridges only spur O. O John lo to drive deeper into Louisiana's political scandals |
