Evening star., 1924-04-01
SINCLAIR DUE HERE
TODAY TO GIVE BAIL
Littleton, Counsel for Ac-
cused, Sees Gordon-De-
murrer Move Expected.

Harry L. Sinclair. millionaire oil
magnate, is expected to arrive IN
Washington this afternoon TO give
bail of $4,000 to answer the indict-
ment reported against him yesterday
afternoon by the local grand jury on
a charge OF contempt of the United
States Senate. Attorney Martin Lat
tleton. representing the oil man. was
in conference with United States At.
torney Gordon last night, and il was
arranged that Mr.. Sinclair would
leave New York on the o'clock tram
this morning.
Demurrer Is Expected.
Counsel for the accused have not
announced their plans. but il is eX-
pected that demurrer VIII be hled
10 the indictment and the court asked
TO decide the question Of law whether
the inquiries to which Mr.. Sinclair re
fused to respond were pertinent TO
the matter under investigation by taG
Senate committee. counsel aiSp prop
ably viii contend that the work OF
the committee was finished When Ihe
legality of the leases III question Eiiu
been submitted to the courts for ue-
termination. The matter then became
d judicial question and the committee
should not have sought to MAKE MI.
Sinclair give evidence before il when
properly belongs before tn courts II
is declared.
The Indictment fills twenty-five type
written pages and is signed bS Cnlteu
States Attorney Gordon and by Atlee
Pomerene and Owen J. Roberts as spe-
cial assistants. There are ten counts
in the indictmtnt. one dealing with each
of nine Inquiries propounded by Seha-
tor Thomas J. Walsh of Montana 10
Mr. Sinclair while the latter was a
witness before the committee on pub
lie 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 or
the Senate.
The Indictment sets forth that for
many years the government OF the
United States has been greatly dis
turbed by the progressive dlmlnutlon
Of the supply OF petroleum. from
which are derived fuel oil, gasoline
and other valuable products indls-
penSahly 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 70
occurrence of such supply on the pup
lie domain OF the United States, and
that this situation has been produc-
tive Of a consider rable amount OF ex-
ecutive action and of legislation oS
Congress.
Cites Executive Order.
The indictment then sets out the
executive order of September ., 1912,
for the establishment of naval petro-
leum reserve No. /: the executive
order of December 13, 1912, for reserve
No. =, and the order of April SO, l9l3,
for reserve No. ). Then follow sec
tions, the act of February 25, 1920,
June T. 1920. the latter being the naval
appropriation act, the executive order
OF May 81, 1894, carrying into erect
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 Presl-
dent Harding.
The grand jurors then declare that
April T. 1922. Secretary DENLY and
Secretary OF the Interior Fall, under
June 4. 1920. had the executive order,
May 81. 1921, as ii result of the pro-
curement of Harry F. Sinclair, act
ing as president of the Mammoth OH
Company, Delaware corporation
and Of negotiations with Sinclair. a
,Srtain lease was made to that cor
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 II. 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
the attention of the Senate was called
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
ouire into the fraud charges and the
appointment and authorization OF the
committee is set forth. and, by reason
thereof. il is claimed the committee
on public lands and surveys was en-
powered to investigate the entire sui
ject of leases upon naval reserves
with particular reference to the pro
lection of the rights Of the United
States.
The Indictment goes on to tell of the
summoning of Sinclair December 4,
1923, to give testimony before the com
mittee when he was sworn as wit
ness. Later, on March %, 1924. Sin
clair was recalled for examination III
matters pertinent to the Senate inquiry
ON the latter occasion Senator Walsh
a member of the committee, PROFOUND
ed to Sinclair a request that the wit
ness tell of contract made by Sinclair
with F. G. Bonfils. touching the Teapot
Dome This question, the indictment
alleges, Sinclair refused to answer.
Eight other questions are set forth
and the refusal of the witness to an
Swer each is alleged
Section 102 of the statutes under
which the Indictment is returned pro-
vides a penalty of both fine and i'm
prisonment The fine is from 500 tc
81 900 and the Imprisonment of from