Evening star., 1927-10-27
Evernart Declares Answer on
Business Dealings Might
lnCriminate Him.
SINCLAIR'S TESTIMONY
BEFORE SENATE BARRED
Bank Official Testifes to Delivery
of $4,000 in Bonds
for Fall.

Roberts, special Government oil coun-
sci, as to whether or not he had anv
business transactions with Harry Sin.
cialr or Sinclair's oil company prior
to February l, 1922. Everhart de.
clared he would not answer on the
ground of "self-incrimination'' and of.
fered to tell the court his reasons.
j Justice Frederick l.. Siddons excused
the jury until after Everhart had
made known his stand on the matter.
AS an official of the Tres Ritos
Land and Cattle Co. the Government
previously had shown by it's evil
dence Everbart deposited a large
amount of Liberty bonds in a Pueblo,
Colo. bank for Senator A. 3. Fall"
The Government contends these
bonds were given by Sinclair to Fall
a month after the Teapot Dome lease
was signed.
Sinclair Evidence Barred.
Upho,ding Section $50 of the re-
vised statutes which provides that no
testimony given before congressional
committees by a witness duly sum-
moned and sworn shall be used
against that witness in subsequent
criminal proceedings. Justice Siddons
blocked efforts of special Government
oil prosecutors to place in evidence,
as an admission against Harry F.
Sinclair, his testimony before the
Senate oil committee on December
4. 1928, i'll which he stated he visited
the CO. defendant Albert B. Fall at
the latter's ranch in New Mexico to
discuss the leasing of Teapot Dome
on December 81, 1921.
Roberts Immediately opened up the
most sensational elements of the
Governments charges by producing
testimony to the effect that Liberty
bonds with par value. of $4,000
were deposited in the First National
Bank of Pueblo, Colo, on May 20,
1922, a month after the Teapot Dome
lease was signed, fy NJ. T. Everbart,
son-in-l law of Fall, with instruction
that they be placed In q box carried
under the name of Senator A. B.
Fair and with the added remark by
Everhart that they were 'Ar. Falls
bonds"
Cashier Tells of Bonds.
The Government charged that fol-
lowing the signing of the Teapot
Dome lease between Sinclair and the
Government on April Z, 1922, Sinclair
delivered or caused 10 be delivered"
and Fall received or caused to be
received from rim" a large amount
of Liberty bonds.
l.. Z. Rule, assistant cashier of the
First National Bank of Pueblo. was
the Government witness from whom
Roberts drew MS evidence which the
prosecution claims was the sixth
overt act in the alleged conspiracy
between the two prominent men to
defraud the Government in connec-
ton with the lease of Teapot Dome.
Rule testified over a storm of OBJ
jections from Falls. counsel, William
Leahy. and in answer to a rapid fire
of questions from Roberts that the
bonds subsequently were shipped
South" that the coupons were de-
tached and deposited in the bank
October 5, 1922, to the credit of the
Tres Ritos Cattle & Land Co. in
which Fall had major interest; that
the deposit slip for the coupons bore
the words from A. B. Fall bonds"
and that they amounted to s1.575.
Rule could not recall where the bonds
were shipped when pressed by Roberts
to explain his testimony that they
were shipped South" He pre-
sumed" Mr.. Everhart gave him the
instructions that they be sent. and
and others were brought back to the
bank by Everhart. These $4,000, the
witness saideSwere later purchased by
the bank, and the amount, s20456.Ss,
was deposited to the Tres Ritos Co.'S
account. On June Is. 1923, the bank
disposed of the $4,000 bonds as part
of lot of $4,000 to a New York bank
ing house. Rule stated
Justice Siddons ruling against the
of Sinclair's testimony
came at the end of a 50-minute state
ment, which he delivered orally on the
opening of court. When the presiding
Justice called for facts and circum-
stances as to Sinclairs appearance in
a prepared statement which he read
Monday morning, counsel for botil
sides entered into a stipulation as 10
the exact state of affairs As a rp-
suit of this stipulation, the Govern
ment's offer of Sinclairs testimony If
December 4, 1923, became enlarged TO
include his statements before the Sep,
ate oil committee of October 29. 1922,
Counsel agreed that on the Octobec
appearance. Sinclair appeared in con
phance with a notice, but was net
sworn. On the December appearanc:
he had been notified, and was sworn.
October Statement Privileged.
The court permitted the Government.
to offer in evidence the October state.>
inents II 1t desired. but in ruling oul
the december testimony Justice Sid
dons declared ito admit it is to deny
the efficacy of the plain language of
the statute and compel Sinclair to be
4 witness against himself
Justice Siddons emphasized that the
question at issue before him was In
no sense similar to that which Justice
Adolph Hoehling decided last year in
the Fall-Doheny trial when he per-
mitted the Government to place in
evidence letter by Fall to the com.
mittee and the testimony of Edward
Doheny. The court explained that
in both instances neither was under
oath and both voluntarily submitted
their testimony to the committee with.
out having been sworn. In permit.
ting the Government to enter the
October 20 testimony OF Sinclair. the
court construed in 1t effect m not be.
ing testimony because the witness
was not sworn. This testimony han
bearing on the oil leases and the Gov.
was uncertain today whether
Il would offer II along with some un-
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