Douglas daily dispatch., 1927-10-11

the government did not charge brib-
cry in this case.
"It was not necessary for the gov
eminent to show it suffered or was
| liable to suffer loss or disadvantage
as result of the lease or that Fall
gained by or was financially con-
cerned in this transaction" Justice
Butler said for the court, which was
unanimous except that Justices Stone
and Van DeVanter did not participate
Justice Butler then added:
1T reqires no discussion to make
it plain that the facts and circum-
stances require finding that pending
the making of the lease and agree
ment Fall and Sinclair, contrary to
the governments policy for the con-
servation of Oil reserves for the navy
and in disregard of law, construed to-
procure for the Mammoth (oiD COM
panv (Sinclair's concerm all the
| products for construction work, fuel
oil, etc; that Fall so favored Sinclair
in the making of the lease and agree
ment that 1t was not possible for
him Loyalty and faithfully to serve
thea interests of the United States or
impartially to consider the appl1ca-
lions of others for leases in the re-
serve, and that the lease and agree
ment were made fraudulently by
means of collision and conspiracy
between them"
Throughout the opinion, Justice
Butler was severe in his condemnation
of Fall. Referring to the $4,000
payment in liberty bonds made to
| Fall by Sinclair after the former left
the Harding administration, the court
said that obviously this was mot a
/ straightforward transaction"
| Coming so soon after the supple
mental agreement made to perfect
and carry out the scheme" Justice
, Butler added at strengthens and con-
firms the inference that Fall had been
willing to conspire to defraud the
United States; and, taken in connec-
ton with other circumstances dis
closed. it is persuasive evidence of
such conspiracy between him and
Sinclair"
Reviewing at some length the or
ganization and operation OF the Con-
| tinental Trading company, the court
called attention that 100000 in lib
erty bonds passed through that con-
Germ and came finally into the hands
| of M t. Everhart, of Pueblo. Colorado,
Falls son-in-laW. and that Fall re-
ceived $4,000 of them and profited
from the proceeds of others.
Of the Continental company itself
! "a Canadian corporation organized
to purchase and resell SO ,333.333 bar
rels of oil in this country-the court
said that its creation, "the purchase
and sale of contracts enabling it to
make more than 100000 without
capital, risk or effort, the assignment
of the contract to the resale pur-
, chaSers for a small fraction of its
probable value, and the purpose to
conceal the disposition of its assets
make it plain the company was
created for some Legitimate purpose
Recalling that the government had
been unable to obtain the testimony
of anv of the men supposed to have
| crganA>d the Continental company
H. M Blackmer, James E. .ONeill.
Robert w. Stewart of the Standard
Oil Company of Indiana. and Harry
S. Osier. Canadian citizen-as to
how the liberty bonds came into Falls
possession, Justice Butler said the
4d1luIC VI OlIlCldT 10 CeSClIy STANDS
on Il different basis"
Having introduced evidence which.
uncontradicted and unexplained, was
sufficient to sustain its charge. !"
Justice Butler said, ''the United States
was not required to call the principal
representative of the company. His
silence makes strongly against the
company (the Mammoth Oil com
pany). 1t is as if he personally held
the lease, were defendant and failed
to testify.
"The guiding considerations by
which the proper significance of such
silence is to be ascertained were well
stated by Chief Justice Shaw in the
celebrated case of Commonwealth VS..
Webster. While Sinclair's failure to
testify can not properly be held to
supply any fact not reasonably sup
ported by the substantive evidence
in the case, it justly may be inferred
that he was not in position to combat
or explain away any fact or circum-
stance SO supported by evidence and
material to the governments case.
CAS- 10 the facts appearing to have
been within the knowledge or power
of Sinclair, we find the evidence
establishes all that it fairly and rea-
sonably tends to prove