Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-13

Secretary Denby?" asked Chairman
Lenroot.
II walked right in
r., You GU felt you couldn't do that with
II wouldn't say that"
Stack said DENLY told him Nothing
doing; Teapot Dome is to remain as
1t has BEEN"
He convinced the Secretary. he said.
that the drainage was taking place.
This was in June, he said, and the re-
serves had been transferred to the
Interior Department in May.
Didn't the Secretary tell you the
reserve was under the Interior De-
partment?" askd Senator Lenroot.
He did not
Doheny sought to get the titles of
the Pioneer Oil Company in the Salt
Creek field, Stack continued, but
Doheny sought to get the titles of
the Midwest Refining Company.
Finally he tired of the negotiations
and sold out to the Pioneer company,
which then gave Stack contract
for 5 per cent right In the offset
wells and s per cent right in the
! rest of Teapot Dome II that COM
pany got the lease. The Belgo com
pany,. which also had claims in the
! Salt Creek field, became party to
the contract.
Argued Claims valid.
Pioneer company were valid. they
act of Congress-. Senator Walsh
asked why the company did not APP
ply for patents and Stack was I'M
! able to say.
/ the Pioneer company asked for q
| compromise Of their claims with the
/ government on two different oc-
| casions, but it's applications had been
Thus" he said, 1.-THE Pioneer as
well az the Belgo were not entitled
| to any lease whatever.
| Stack said Doheny had figured that
his interest in the contract with d the
Pioneer and Belgo was worth s1'ooo,-
! 900. "if they got the lease
When they had become convinced
! they would be unable to obtain the
lease. Stack said. the company ON
(, Gals offered him $4,000 in settle
ment of his claim under the contract
he had with the Pioneer. but ne re,
fused. Schuyler. he added, advised
him to accept, but he regarded Scnuy-
Ter as prejudiced because he had been
| a counsel for. and ofhscr OF, the
| Pioneer company.
Asked what he regarded as the con
spiracy charged in his bin OF complain,
Stack said he believed Sinclair. the
Pioneer and the Midwest DIV. ;d,f rad cohsp'reo
Frederick /onfils, publisher OF the
Denver Post. he said. then offered to
finance the negotiations.
| And you were willing to give Bon
| fills $2,500,0o0 just to finance a law
suit?" asked Senator LenIoot
! YES" was the answer.
Stack said H. H. Schwartz was re-
ita,ned as counsel, and the bill of COM
| plaint was prepared, with Sinclair and
| the Mammoth Oil Company Joined as
| defendants.
| was the complaint ever served?"
asked Chairman Lenroot.
/ THE summonSes were served
| "Why did you not file. the COM
piaint?'
Withheld Complaint.
! Because l did not want them to
know what l had in my complaint"
| Why did you not file it later
| Because they had started negotia-
| lions for a settlement"
! you wanted to hold the summons
as club to force a settlement. to-
| gether with Mr.. Bonfils' Denver Post?'
mo. sir
| Stack said L. L. Aitken of the Pr
+, oneer company started settlement
negotiations and said Sinclair should
| settle. A conference was arranged
with Sinclair in New York and in
September. the witness said, sinclair
and the Pioneer company sent word
they wanted to meet US In Kansas
! "Did you and Mr.. Bonfls consider
| the easiest way to get money out
| Of Mr. Sinclair was to continue
pounding Sinclair's leases in the Den
| yer POST" asked Chairman Lenroot.
| I'm not managing editor Of the
Denver Post. 1 know nothing about