Evening star., 1924-03-06
Pomerene and Roberts to Ap-
pear Against Sinclair and
Doheny in West.
RETURN OF RESERVES
TO GOVERNMENT SOUGHT
Grand Jury Will Be Called in D. C..
April l to Consider Scandal
Evidence.

Cancellation Of the government oil
leases to the Doheny and Sinclair in
tertsts will be sought in bills Of
equity to be filed by the government
oil counsel next week.
The bills will ask for return Of the
naval reserves to the government on
the ground that fraud and illegality"
were involved.
The bills for injunctions, being pre-
pared by Atlee Pomerene and Owen j.
Roberts, will be filed in the federal
district courts for Wyoming and
southern California.
Ask Special Grand Jury.
At the request Of the special coun-
sci, a special grand jury will be i'm
paneIed here about April 1 to consider
the evidence so far brought out in the
oil inquiry.
Injunctions also will be asked
against further drilling and with
drawal of oil by the Sinclair and
Doheny companies and the court will
be requested to name receivers to
control the properties pending COM
pletion Of the litigation.
Hearing March 13.
Thursday, March 13, has been set by
the federal Judge at Cheyenne for q
preliminary hearing on the Sinclair
contracts, at which the government
counsel will be present.
The following statement was issued
by the special counsel:
BILLS in equity in the oil cases have
been prepared and are now in the hands
Of the printer They will be filed IN
the United States courts; that against
the Sinclair companies in the district
of Wyoming and that against the Do
heny companies in the southern district
of California.
THE judge at Cheyenne has set
Thursday. March 13, for the prelim-
mary in the Sinclair case. Messrs. Pom
creme and Roberts will leave Washing
ton so as to be present at this hearing
As soon as practicable thereafter they
will proceed from there to California,
where the preliminary hearings will be
held as promptly as the convenience Of
the court permits.
Want Drilling Stopped.
"The prayers in both bills ask for
a cancellation Of the several leases
and contracts on the grounds Of fraud
and il1egality and for the return of
the naval reserves to the government
and for injunctions against further
drilling and withdrawal of oil by
the defendant companies, and the ap-
.pointment of receivers to take pos
session of, manage and control the
properties under the orders of the
courts pending the final determine
ton of the litigation.
"At the request OF the government s
special counsel, a special grand jury
will be impaneied in the city of
Washington, on or about April 1, to
consider the evidence In the oil cases.
before that date would expire by
limitation of law on March 81, April
1 is considered to be the earliest date
that grand jury Investigation can be
instituted"
Expect Early Argument.
It is expected by special counsel
that the court at Cheyenne will grant
the government a temporary in1unc-
ton, and will fix date In the near
future for argument on making the
injunction permanent pending final
decision Of the courts in the cases
asking annulment Of the leases.
The federal district court for South
ern California. counsel believes, Will
follow a similar course with regard
to the Doheny lease and contract.