Evening star., 1925-06-19

rent that the then Secretary of the
Interior. Albert B. Fall, had leased
the big Wyoming naval oil reserve to
Harry r. Sinclair's Mammoth Oil Co.
Reports of the leasing were confirmed
by Mr.. Fall himself after the Senate,
at the instance of Senator j. b. Hen.
drick of Wyoming, had demanded of
the Interior Secretary the facts in the
case.
1t was April 81 of that year when
Mr.. Fall reported the lease had been
given Mr.. Sinclair. The next step of
consequence was the creation of the
Senate oil committee, headed by Sena-
tor Walsh of Montana, which probed
long and deep into the transaction,
giving the Government information
upon which it based it's suit for annul-
ment on the ground of fraud and lille
gality-
The suit was prepared by Owen j.
Roberts, Philadelphia lawyer, and
Atlee Pomerene, former Ohio Senator,
who we're appointed by President Cool
idge as special Government counsel.
1t was filed in March, 1924, just a
year before being brought to trial.
Trial S230,500 in Bonds.
In the year intervening between the
filing of the suit and the trial Mr..
information which they said indicated
an exchange of Liberty bonds between
Mr.. Sinclair and Mr.. Fall shortly
after the lease was executed. and
their hunt for evidence led them to
Toronto, Canada, to the threshold of
the Continental Trading Co, which
they later charged was an organiza-
ton fostered by Mr.. Sinclair and other
oil men.
One of the functions of this COM
pany, the Government charged. was
the passing of securities to Mr.. Fall
from Mr. Sinclair. The Government
attempted to prove that $3.50, 500 in
bonds bought by the trading COM
pany were given to Mr.. Fall. H. S.
Osler. head of the company, refused
to answer questions in Toronto when
asked for a deposition by a repre>
sentative of the American State De
partment.
After three delays in the start
ing of the case. it got under way
here March 9 last. Mr.. Sinclair and
his small army of attorneys, among
them Martin w. Littleton of New
ton and j. w. Lacey of Cheyenne,
We're on hand to fight the Govern
ment's charges with every means at
their command.
Deal Kept Secret.
E. c. Finney, Assistant Secretar Y
of the interior, was the first wit
ness called by the Government in its
attempt to prove that the negotia-
ton and execution of the lease were
carried out IN secrecy and that II
had been granted without competi-
tive bidding. Mr.. Finney testified
that he had not been informed of
the signing of the lease until some
time after it had been executed.
Senator kendrick also was called
to testify as to a flood of inquiries
by his constituents as to prospects
for leasing the oil reserve, and of
his unsuccessful attempts to get
definite Information from the Interior
Department. Then the Government
plunged into it's attempt to establish
that Mr.. Fall had received liberty
bonds from Mr.. Sinclair 1t called
to the stand bank officials and en-
ployes from Pueblo, Colo; Ell Paso
Tex, and Carrizozo, n. Mex, where
Mr.. Fall had banking connections,
and produced records of Mr.. Falls
bank accounts.
The defense objected vigorously to
the introduction of these records on
been introduced to connect either Mr..
Sinclair or Mr. Fall or the Mammoth
Oil Co. with the transactions. Federal
Judge r. Blake Kennedy took the
objection under advisement over the
week end and on the following Mon.
day upheld the objection on the
ground that the Government had es.
tablished no connection between Mr..
Sinclair and the bank accounts. The
Government then reversed its order
of testimony and called bank clerks