Evening star., 1927-10-31
Government Prosecutor Sue
ceeds in Introducing Evidence
Over Objections of Defense.
DOCUMENTS SHOW TRADE
WITH HUMPHREYS FIRM
Roberts Contends Proceeds Were
Invested in Bonds Which
Fall Later Received.

cutor, succeeded today in placing be.
fore the jury in the Fall-Sinclair con-
spiracy case evidence intended to show
that Harry F. Sinclair had a major
interest in the Continental Trading
Co. of Canada, (which by an oil deal'
made millions of dollars in profit and
invested them in Liberty bonds, some
of which found their way into the
hands of Albert B. Fail a month after
the Teapot Dome lease was given to
Sinclair by the former Secretary of
the Interior.
Roberts read to the jury three legal
documents which in effect showed that
on November IT, 1921, A. f. Hum.
phreys, now dead, a wealthy Oil Oh.
orator Of Texas, sold 33,333,333 bar.
rels of oil at $1.50 per barrel to the
Continental company, which Roberts
told the court was a mere shell' and
was organized on that same day; that
the Continental company on the same
day resold the oil to the Sinclair Crude
Oil Purchasing Co. and the Prairie
Oil Gas Co. at S1.75 a barrel and
that Sinclair and James f, O'Nei!.
president of the Prairie company. who
cannot be found to testify in this trial.
guaranteed in writing the performance
of the Continentals contract with
Humphreys.
Seeks to Prove Agreement.
Then as Roberts sought to show
that an agreement had been entered
into between the Sinclair Crude Oil
Purchasing Co. and the Continental
co. on May 26, 1923. whereby the
Continental Co. assigned its contract
with the Humphreys companies to the
Sinclair interests for $400, 900, Martin
w. Littleton, counsel for Sinclair.
vigorously objected on the ground
primarily that the date of the agree.
ment was beyond the boundaries
established in the indictment during
which the alleged conspiracy began
and was consummated.
Roberts had called Fl. l.. Phillips of
Tulsa, Okla, president of the Sinclair
Crude Oil Producing Co. to the stand
and requested him to produce the
agreement. It was upon this request
that Iittleton sought to block the
Governments procedure.
With the jury excluded, Roberts
made lengthy statement to the
court, in which he emphasized the
Importance of this agreement. BY the
admission of the agreement, he told
Justice Frederick l.. Sddons, in which
the Continental company "sold it's
contract for the paltry sum of $780,
900" at time when 1t would have
made millions Of profit" under it. the
Government oil prosecutor declared
that evidence and more to follow
would show what the Continental
company was, where it made its profit,
who was interested and would bring
home Sinclair's ownership and distri-
button of the Liberty bonds"
Littleton took the stand that the
Government to date had not produced
any evidence whatever which would
tend to show that Sinclair was inter.
ested in the Continental company;
that he ever received bond for my
profits made by the company or that
he was in any other way identified
with it.
Evidence Is Admitted.
In permitting the admission of the
agreement as evidence, the case pro.
| ceeded, only to be interrupted moment
| later for the luncheon recess. Justice
Siddons, in overruling the objection
| of the defense, stated that while no
evidence had been offered to show
that Sinclair owned stock or secur-
tiles in the Continental Co. at the
time of the development in the present
case, the evidence thus far tends to
show that the Continental Co. was
| "a mere instrument, a shadow and an
| illusion" by which was secured an
| exceedingly profitable contract. Il
am not prepared to characterize it
| as mere speculation or conjecture"
| the court added with some heat. I'm
view of the evidence which Govern
ment counsel has already put in and
| in view of the Governments conten-
| ton and what it purports to show
! later on | am not prepared to say
| that this is irrelevant"
Immediately after the luncheon
recess, Roberts read to the jury the
| agreement of May 26, 1928, which set
forth that the Sinclair Crude Oil and
Prairie companies agreed to the con-
| tract made between the Continental
Co. and the Humphreys companies
for 100000, half to be paid by the
Sinclair CO. and the other half by the
| Prairie concern. Each company
therefore had one-half interest in the
| contract, which was taken over as OF
June j. 1928. The agreement also
set forth that the repurchase or re.
sale agreement would be Cancelled.
Tells of Meeting Osler.
| III answer W 4utSllO1S,
Phillips said he met Fl. S. Osler,
president of the Continental Co. in
the Sinclair Building in New York on
an appointment made by the witness.
Asked by Roberts from whom he re-
ceiVed his instructions to make the
appointment. Phillips could not
answer explaining, Il had heard the
assignment of the contract could be
| purcha sed." He denied that Sinclair
gave him the information, and dis
missed the question finally by declar-
| ing, II don't know where | first heard
about it," .MaM
| Osler had draft of the agreement
in which the 100000 appeared, and,
| after discussion as to the terms,
| Phillips signed on behalf of the Sin.
clair Crude Oil Co. He said, in
| answer to further questions. hat he
previously had heard the figures in.
volyed, but was unable to give the
source of that information. Roberts
hammered away with many questions
in an endeavor to learn from the wit.
ness his original information about
| the assignment. but without avail.
j; The agreement already had been ex
| ecuted by the Continental Co, Phil
| lips testified, when he first saw it, and
later it was executed by the pla1 a.
Co.. from which concern he received q
copy showing that action.
| Phillips executed the contract with.
/ l, ..;f l..