, 1925-02-26
TEAPOT TRIAL
DELAY FOUGHT

Continued from Page One.
possession of II. S. osler. president
of the Continental Trading Com.
pany. Ltd, a Canadian corporation,
had been traced to the possession of
M. t. Everhart of Pueblo. Colorado,
son-in-law and partner of Albert b.
Fall. and that the testimony OF osler
is essential to the establishment of
the governments contention that the
Teapot Dome lease should be an.
nulled. In earlier pleadings the
government set forth that the grant
ing OF the Teapot lease to the Nam
moth Company was the result of
collision and fraud between Harry
F. Sinclair and Albert b. Fall. then
secretary of the interlar.
The affidavit today relates the de.
tails of an alleged transaction in oil
between the Continental Trading
company and the Humphrey Texns
Company and the Humphrey Mexia
Company whereby the former was
to purchase from the latter 80, 000,.
900 barrels of crude oil at $3.50 per
barrel. fulfillment of which contract
on the part of the Canadian conf.
pany was guaranteed by the Sin
clair Crude Oil Purchasing Company
and the Prairie Oil Company. The
contract WIS entered into, the aft.
davlt sets forth, on the same day
the Continental company obtained
its Canadian charter. November II.
1921. and It is further asserted that
on tho same day the Continental
company entered into a contract for
resale of the oil to the Sinclair and
Prairie companies for $1.75 per bar
rel. Thereafter, the affidavit sets
forth. the profits resulting from this
deal were invested In liberty bonds
and that these bonds were prornted
among the stock warrant holders Of
the Continental Trading company.
The government counsel'a affidavit
further relates that prior TO May s.
1922, the Dominion of Canada Bank
through Its New York branch. pur-
|ased for osler. as president Of the
Continental company, 100000 OF
three and one half per cent liberty
bonds and on May S delivered these
bonds to Osler. On May 20, 1922,
the affidavit asserts. NJ. 4. Everhart
delivered 800 900 "of said bonds to
the First National Bank of Pueblo,
Colorado. for A. II. Fall, and that on
October 20, 1922. $40. 900 of said
bonds were deposited to the credit OF
the Tres Ritos Land and Cattle COM
pany. the capital stock Of which. II
is alleged. was owned by Fall and
Everhnrt. On the same day. tho
affidavit further alleges, Everhart
sold TO the M. ID. Thatcher Estates
company $40 500 OF three and one
half per cent liberty bonds for par,
plus accrued interest, and that with
the proceeds from this sale Ever
hart paid notes against himself. Fail
and the Tres Ritos company which
were held by the Thatcher company.
Government counsel assert in their
affidavit that they have the numbers
OF the $40, 500 OF liberty bonds de
lIvered to the Thatcher company
and that these bonds are n part of
the $500, 900 OF bonds delivered by
the New York branch of the
Dominion OF Canda Bank to Osler.
The greater part Of this informa-
ton. the affidavit sets forth. has
been obtained by government coun-
sci since they applied for and OBJ
tanned last December n continuance
in the annulment suit trial until
March o..
The government counael's affidavit
further assert that pursuant to tho
deal between the Continental com.
pnny and tho Humphrey companies
and tho subsequent deal between
the Continental company and the
Prairie and sin6;alr companies more
$4,000, 900 OF liberty bonds were
distributed among the stock war
rant holders OF the Continental com
puny. Among whom. It Is alleged,
were Harry +. Sinclair. james f.
II. NJ. Blackmcr, II. S, Osler
and others. The affidavit further
asserts that after s,I00.000 barrels
n the oil covered by tho Continental
companies contract md
the Contlnentnl-sinc Prairie com
contract had been delivered
and rosold. tho Continental company |
sold tho contracts to the Sinclair
Crude Oil Purchasing company and
he Prairie OIL and Gas company for
1900. 900. that this 100000 was in.
in liberty bonds and TINT
.hese bonds were distributed among
he stock warrant holders OF the
company. which shortly
hereafter surrendered It's charter
md destroyed. or is alleged to have
destroyed, all It's books and other
.ocords with the exception Of a few
minor papers. The books and rec.
'rds were destroyed, the government
assert II TO be their belief.
or the purpose OF %concenling tho
transactions OF the Continental com
The government counsel'e affidavit
that the testimony OF Oslor
others connected with the Con.
mental company is essential to
the liberty bonds alleged TO
been involved In the Byerhart-
Failures Ritos deals at Pueblo, that
his Information Is essential to
Establishment or the governments
contention that the transaction re-
in the Issuance OF the Tea
Dome tpuao to the Mammoth !