The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-02-09
BLACKMAILED
SINCLAIR FOR
COLD MILLION
Denver Post Editor Gives
PTObeTS Thrill

(Contin~ed from page ~
wise fail the republic as he has
failed it."
Walsh attacked Senator Lenroot,
chairman of the committee. for at
tempting to draw McAdoo into the
controversy, saying:
1T was reserved to the chairman
OF the committee who has repeatedly
from the floor lectured other men,
bers for giving to the investigation
political color, to travel outside the
realm Of examination into the leases
Of the naval oil reserves, by the reso-
luton to inquire into the employ
ment by Mr.. Doheny of counsel in
matters unrelated thereto for the
perfectly obvious possibility of ruin
ing the prospects of the leading can
didate for the Democratic nomina-
ton for president.
Harsh Words, Senator.
"Mr. DENLY says the wool was
pulled over his eyes. His testimony
discloses that it wasn't much of a
trick; that he is one of those VINO,
having eyes, see not and, having
ears, hear not the things that con-
Germ their temporal, however it may
be with their eternal salvation"
Resolutions calling upon the State
| Department for all available infor-
nation concerning oil leases made by
nine nations was introduced in the
Senate today by Senator Dill, Wash
lington, Democrat.
One resolution calling for CORE
spondence concerning leases made by
England, Holland, Portugal, Persia,
/ Venezuela, Cheko-Slovakia and Mex
leo, and data concerning Russian
oil activities.
A second resolution calling for
information concerning Colombian
leases.
WASHINGTON. - Fred G..
Bonfils, publisher of the Den
yer Post, told the Senate Com
mittee investigating the oil
scandal today that he has a
secret Teapot Dome contract
with Harry F. Sinclair, lessee
of that naval reserve. Sinclair
already has paid him $250,000,
Bonfils said.
Under the contract Sinclair
must soon pay 81, 900, if he
wishes to drill certain acreage
in Teapot Dome.
"Some time after the Teapot Dome
lease was signed an acquaintance of
mine, Leo Stack, showed me a con-
tract he had," Bonfils said. "He
claimed it was a prior contract and
that the Sinclair lease had been
granted over his head.
Il lhad my attorney look over
Stacks contract and thought it legal
$50 entered into contract with
Stack under which we were to give
him the first $4,000 and we would
J divide the remainder between my
partner and my attorney.
Story Never Published.
II heard a good many rumors so
| concluded to send a man to New
Mexico to investigate.
II sent Mr.. Stackelback "a re-
porter) and he came back with an
astounding story. He was cautioned
especially not to disclose his identity
or to quote those from whom he
obtained the story.
"The managing editor, Mr.. Shop
pard, and l talked it over with Mr..
Bottoms, my counsel. We decided
the articles should not be printed
because they were libelous.
eve then ran a long article at
lacking the Sinclair lease under the
most conspicuous caption we had.
"Mr. Zevely (Sinclair's attorney
came out to see us and invited us
TO New York to see Mr.. Sinclair. It
was about July 4, 1922, when we
went to see Mr.. Sinclair.
"Mr. Sinclair told us brusquely,
L don't know why you came here,
so we went back to Colorado.
ain the meantime we had brought
J suit against the Midwest Oil Com
pany and other companies to carry
out our contract with Stack.
Later we met Sinclair in Okla
homa City and made contract by
which he was to pay US $250,000 and
1 give us 800 acres of land in the
Teapot Dome. This was because of
our claim thru the Stack contract.
$1,000,OO0 Deal.
"Sinclair said later he would OPP
crate our acreage because he didn't
want anyone else beside himself
drilling there. We refused to do
that.
$50 finally we decided to let him
have IS months to decide whether
he wanted to pay $1.O00,0O0 to US
for our share.
"He paid US the original $250,000
of which $4,000 went to Stack. /
4 got $4,000 and my partner got
$4,000. Mr.. Schwartz, our attor-
ney, got about $4,000. Then Stack
got $4,000 more for his pro rata