New Britain herald., 1924-02-08
M'ADOO APPEARS
 IN OIL INQUIRY


 that he was free of prejudice which would have disqualified him from un- dertaking the work.
 Publish. r Appears
 Frederick G. Bonfils, publisher oi the Denver Post, appeared as volun tary witness to tell of his efforts tt assist Leo Stack to enforce contract
 Stack had with the Midwest ant other oil companies supposed to owr acreage in the Teapot Dome reserve before it was leased to Harry r. Sin clair by former secretary Fall.
 Mir. Stack claimed they had leased over his head" said Mir. Bonfils. "I entered into contract with him to help him to enforce his rights. The agreement was that Mir. Stack was to get the first s50,000 and the remain der was to be divided 46 1-4 per cent 23 If per cent to my partner and z 1-4 per cent to my attorney, H. H. Schwartz
 There were rumors about the Sin clair lease, the witness continued. which led him to send reporter, MT. Stackelback to New Mexico to inves- tigate.
 He brought back a shocking and astounding story" Mir. Bonfils said. Tt was one we hesitated to believe. He was sent back to make further inquiry, and was cautioned not to reveal his identity, because there might be great danger of bodily harm to him.
 n. t,,1 . f.1t rft a1- back returned it was decided to pub fish a series of articles in the Post. The first appeared on August 15, 1922 and copies were sent to members of Congress. The lease was attacked "by analysis and theory" he contin- ued. and later Senator LaFollette, re- publican, Wisconsin, introduced his resolution calling for an inquiry.
 Mir. Bonfils said J. W. Zeveiy, per- sonal counsel to Mir. Sinclair, called on him ip Denver to discuss the mat ter and finally invited the witness, his partner, Stack. and Schwartz. to go to New York to see Sinclair.
 When he arrived there," he said, "Mr. Sinclair said rather brusquely that he did not know why we came 10 see him; that our suit was against the Midwest, and allied companies"
 You had filed suit them" asked Senator Walsh.
 "oh, yes, suit had been started against the Midwest" was the reply.
 Money Paid Over.
 Mir. Bonfils told the committee that subsequently there was meeting at Kansas City. at which a contract was drawn. Under this the Sinclair inter- ests were to pay s250.000 for the Stack rights and give those interested in the Stack contract s2o acres in the Teapot Dome oil reserve. This money actually was paid over by the Sin- clair people, Mr. Bonfis said.
 Under the agreement the witness said, the Sinclair Oil company. was bound within IS months, which will expire March 15, next, to repurchase the 320 acres at a cost of s750,00 if | the holders desired to sell.
 F. l.. Doheny had been much inter- | ested in Stacks efforts to obtain the Teapot Dome lease. MT. Bonfils said, but had suddenly for some unknown reason withdrawn. Mir. Bonfils ex- plained how the s2so.ooO paid by Sinclair had been divided between him and his partners.
 The suits he and Stack had insti. tuted, he said, to assert rights they claim in the Salt Greek field were set- tied by the agreement which Sinclair had made with them in the name of the Mammoth oil corporation. The Sinclair interests wanted to clear up all dispute of title, he said, fin connec- ton with tho granting to them by Fall of the Teapot Dome lease. Sim clair had testified that he expended in this connection about si,0oo,0oo
 Leases Worth ef7,500,O00.
 Mir. Bonfils said that Doheny. while interested in the Stack claims esti- mated that MT. Stacks leases tfth the Midwest and other companies at lowest value were worth from s5,000,- 600 to s17,50o,Oo0."
 Mir. Doheny had based his estimate, Mir. Bonfils said, upon the reports of the geologists who had examined Teapot Dome reserve. The witness told the committee that he had never seen Mir. Fall.
 Didn't you go to Alaska with him in ls2S?" asked Senator Walsh. No. I went to Alaska with Presi- dent Harding. Secretary Work was on that trip, as were Secretaries Wal , lace and Hoover The publisher explained in reply to , further question that at the invitation Of Secretary Dcnby he now was on his way to board the naval transport , al e ss A the naval maneuyers off , Panama. n Alter the various contracts enter Ing into the original claims and settle ment had been read into the record, Mir. Bonfls said stack had an agree [ ment with the pioneer, Belgo and $ other companies to sell their claims q to Teapot Dome to anyone he could | f get to buy them. He added that he S though the original plan also called q tor Stack to seek lease from the | government for the. whole Teapot \ Dome field. In
 stacks Qualifications s senator Walsh wanted 10 know b what qualifications Stack had to get he lease.
 He was prominent politically and lociaIiy in Denver" was the reply. v He ran for congress on the demo- satic ticket and had been here in x Washington for some time with the ip p midwest crowd and I think he had r ,ood many qualifications for doinr e lis work" lu Just what was # you were to do !, D the fnafter7" asked Senator Walsh. ,l sT was to see fl we could not get