Evening star., 1924-03-31
SINCLAIR INDICTED
BYD. c. COURTFO
SENATE CONTEMPT
Ten Counts in Indictment
Based on Refusal to
Reply to Probers.
FINE AND JAIL TERM
IS PENALTY IN CASE
Full History of Case Is Cited in
Twenty-Two-Page Finding by
Grand Jury.

Harry F. Sinclair, millionaire oil
magnate, was indicted this afternoon by
the local grand jury on a charge Of
contempt Of the United States Senate
by violating section 1o2 Of the Revised
Statutes of the United States, in refus-
ing to answer certain questions pro
pounded to him by a committee of that
body.
The Indictment fills twenty-five type
written pages and is signed by United
States Attorney Gordon and by Atlee
Pomerene and Owen ]. Roberts as spe-
clal assistants. There are ten counts
In the indictment, one dealing with each
OF nine inquiries propounded by Sena-
tor Thomas j. Walsh of Montana to
MI. Sinclair while the latter was a
witness before the committee on pub
TIC lands and surveys of the Senate.
The tenth count deals with the general
refusal of Mr.. Sinclair to answer any
question.
Questions Called Pertinent.
The questions propounded by SEN
ator Walsh are declared by the grand
jurors to have been pertinent to the
matters and questions then under in
quiry before the said committee" of
the Senate.
The indictment sets forth that for
many years the government of the
United States has been greatly dis
turbed by the progressive diminution
of the supply of petroleum, from
which are derived fuel oil, gasoline
and other valuable products indis-
pensably necessary to the operation
OF the naval vessels of the United
States and has been keenly interested
in the subject of the conservation and
economical production, handling, stor-
age and use of such supply for that
purpose. especially with reference to
lie domain of the United States, and
that this situation has been produc-
tive of a considerable amount of ex-
eoutive action and of legislation by
Congress.
Cites Executive Order.
The indictment then sets out the
executive order of September 2. 1912.
order Of pecember 1s, 1sfa M for eAeeSsrve reserve
No. 2, and the order of April 30. 1915,
for reserve No. 9. Then follow sec
June 4. 1920, the latter being the naval
appropriation act, the executive order
of May 81, 1921, carrying into effect
the appropriation act authorizing the
leasing of oil wells. by the Secretary
of the Interior in the naval reserves
The latter order was signed by Presi-
dent Harding.
The grand jurors then declare that
April Z, 1922, Secretary DENLY and
Secretary of the Interior Fall. under
supposed authority of the act of
June 4. 1920, had the executive order,
May 81, 1921, as result of the pro-
curement of Harry f. Sinclair, act
ing as president of the Mammoth Oil
Company, a Delaware corporation,
and of negotiations with Sinclair, a
n hof
poration of the Royalty Oil and Gas
which might accrue to the United
States and sets forth subsequent sup
Elemental contracts with the same
company. Contracts by DENLY and
Fall, December IL, 1922, made with
the Pan-American Petroleum and
Transport Company are also detailed
in the Indictment
After the making of these leases
and contracts the indictment states
to the matter, and charges of fraud
collusion and bad faith were made
and the legality of the leases and con-
tracts questioned. There then arose
in the Senate, the indictment declares,
a question as to the future policy of
the government as to such leases and
the necessity and desirability of leg
islation upon the general subjects
involved.
Senate Resolution shown.
The resolution Of the Senate to in
quire into the fraud charges and the
appointment and authorization of the
committee is set forth, and, by reason
thereof, it is claimed the committee
on public lands and surveys was en-
powered to investigate the entire SUBJ
ject of leases upon naval reserves
with particular reference to the pro-
lection of the rights of the United
States.
mr. ;od;ot,,o,t rroo~ - g.. .,u 80 ~ ~
Summoning of Sinclair December 4,
1928, to give testimony before the COM
mittee when he was sworn as wit
ness. Later, on March %, 1924, Sin
clair was recalled for examination in
matters pertinent to the Senate inquiry.
On the latter occasion Senator Walsh,
member Of the committee, propound-
ed to Sinclair request that the wit
ness tell of a contract made by Sinclair
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