So I was reading an exerpt from a book about Beverly Hills Mansions and the drama within.
Accoring to this book, Hugh, the secretary, did shoot Ned in a fit of rage. However, it was no lovers tryst. Hugh had worked for Lucy Donheny's family before she and Ned were married (Lucy's father owned the Pasadena transit system). Hugh had worked as a mechanic and had met Ned, instantly there was a common admiration and friendship even thought their backgrounds were very different (rich man, poor man and all). Ned took Hugh on as an assistant and a travelling companion and Hugh loved living the high life with Ned. (There was no talk in this book of Ned living at the Mansion, but the murder did take place in the same guest suite.) On one occassion, Hugh traveled with Ned to D.C. to meet a politician (the Secretary of the Interior) and give him $100,000.00. Hugh didn't know this was a bribe, and he also didn't know the reason for the bribe; Ned was paying off the Secretary so he could get incredibly cheap land prices so his company could build oil wells on it and increase his already high profits. This became known as the Teapot Dome Scandal (it's called Teapot Dome because there was an outcropping of rocks near the oil fields that looked like the dome of a teapot.) and it rocked the media and Washington.
Once Hugh found out about this, he freaked out. Appealing to Doheny for advice (he could have been ruled as an accomplice), Doheny said not to worry. Hugh worried. He knew Doheny was in the clear because he had enough money to buy off any judge, politician or media outlet. Hugh, on the other hand, had nothing and feared a long stay in prison for his employers shady dealings. Ned offered an alternative, Hugh could have himself committed to a state metal facility for the duration of the trial. Hugh almost went along, but balked when the thought of the Doctors failing to release him after the trial claiming he was mentally unstable. He feared that the Doheny's might pull strings to keep him in that hospital for years, if not the rest of his life.
In addition to this stress, Hugh's wife (aha! a wife!) of 11 years had just left him and filed for divorce citing abandonment as her justification as well as a fear of his volatile mental state. This did not help Hugh's situation and he suffered a nervous breakdown and was ordered by the Doheny's family Doctor to bedrest. Ned offered him sanctuary in the guest house (no personal bedroom in the house, according to this source) but Hugh decided to stay home to stay out of Ned's reach, his anxieties began to spin out of control. Hugh had become suspicious and began to see a rift between the two realizing they were never really close at all. Hugh was both a liability and a man to take the fall.
One night, Hugh decided to take matters into his own hands. He drove up to Greystone and was allowed in by the Guard (the majority of Beverly Hills mansions were without guards at this time, Greystone was one of the few exceptions) because Hugh was a frequest visitor. Hugh arrived at the house and burst in the Doheny's master bedroom as the couple were getting ready for bed. Ned took Hugh to the Guest room downstairs to smoke, drink, and talk about Hugh's problem. Sensing Hugh's now erratic behavior, Lucy Doheny phones for their Doctor to come immediately.
Upon the Doctor's arrival, 2 shots ring out from the guest room. The Doctor, followed by Lucy, runs to the room. He steps over Hugh's now dead body and finds Ned still breathing but with a bullet wound in his head and blood beginning to drip from his mouth. In an attempt to revive Ned, the Docotor turns the man on his side to clear his air passage but Ned dies within a few minutes. Lucy returns to her room with a servant and goes into hysterics. The Doctor calls Ed Doheny Sr. at his home in Chester Place in West Adams and tells him of his sons death. Mr. Doheny travels by car through the night up to the home he built for his son.
Upon seeing the body, he goes to his sons side and takes one hand in his and holds it for some time. Once police arrive, Ed goes to join his daughter-in-law who has regained some composure, but continues to grieve. It is said that Ed fell to the ground and wept uncontrollably for his only child. A servant closed the door to leave the pair in privacy.
Paraphrased from the book
'Among the Mansions of Eden: Tales of Love, Lust and Land' by David Weddle