Evening star., 1927-10-29
Government Counsel Appa-
rentIy Satisfied With Devel-
opmentS of Week.
DEFENSE is ENCOURAGED
BY DECISIONS OF COURT
Barring of Testimony Is Consid-
cred Advantage in Case
for Defendants.

Instantaneous to the
in the conspiracy case
against Albert B. Fall and Harry F.
Government counsel looked
with satisfaction upon developments
Of the last five days when the trial
came today to it's second week end
pause.
For the defense it would seem that
the honors of the week were gained
through the two decisions of Justice
Frederick L. Siddons, who is giving
to the trial the same careful impair
tiality in his rulings that marked
proceedings in the former conspiracy
case involving Edward L. Doheny. But
the advantage the defense derived
from these rulings was short-lived for
Government counsel ''came back" yes
terday with a relentlessness that con-
nected Sinclair with the Continental
Trading Co. of Canada, that mysteri.
Gus concern, through which the $780,
500 in Liberty bonds which ultimately
found their way into Falls safe de-
posit box are being traced.
Rulings Were Significant.
The decisions from the bench, which
proved the outstanding features of
the weeks development, involved the
laying of important evidence before
the jury bearing directly on the con-
spiracy indictment. In the first de-
cision the court barred testimony
given by Sinclair before the Senate
investigating committee that his re-
nowned christmas visit" to Fall at
the latter's New Mexico ranch in 1921
was for the purpose Of opening nego-
tiations for lease on the Wyoming
naval oil reserve. The second, and
most important, upheld the refusal
of Falls son-in-law and business part.
ner, NJ. T. Everhart, to reveal to thu
jury the source of the $780, 500 in Lib
erty bonds he had received short
time after the lease had been signed.
Upon Everhart's testimony the Gov
ernment had hoped to bring out direct
evidence to back up it's maze of cir
cumstantial evidence that the bonds
were received direct from the Conti-
mental Trading Co. through Sinclair.
Such admission possibly would have
proved the strongest link in the Gov
ernment's chain of evidence.
Owen J. Roberts, who has been bear
ing, almost sing]A- handed, the brunt
of presenting the Government evil
dence. while handicapped by the bar
ring of this testimony, demonstrated
an ability to "come back" in mastery
fashion.
After the refusal Of Everhart to
answer leading questions on the
ground that his answers would tend
to incriminate him, the Government
counsel took another course and pro-
ceeded doggedly in his attempt to link
Sinclair directly with the operations
of the mysterious Continental COM
pany. which at one time had possess
sion of the S230,500 in Liberty bonds
which the Government charges were
used to bribe the former Secretary Of
the Interior.
Oil Purchase Deal Recalled.
Through former Senator Charles S.
Thomas of Colorado the Government
showed that Sinclair took part in a
conference called for the urpose of
negotiating the purchase of a huge
quantity of oil from A. L. Humphreys
of Denver. Sinclair, Thomas testified,
acted as co-guarantor of the contract
which subsequently was executed.
The proceedings were of special in.
terest to the jury which was taken
rapidly from New York to Pueblo,
Colo; to Ell Paso, to Carrizozo, N. Mex,
to Denver and finally to Washington,
wnere the Cancelled coupons We're
safely tucked away in the Federal
Treasury and from which the oil coun-
alOft, $230,500 worth, for the benefit
nf Ix-hn
are sitting in judgment of the two
noted defendants. Like the torn parts
Of the 100000 notes previously given
Edward l.. Doheny by Fall, the
coupons appeared as a damaging piece
Of evidence.
When court recessed yesterday until
Monday morning, Thomas was in the
midst of his examination by Govern
ment counsel. At this point counsel
on both sides had engaged in a heated
controversy as to whether the former
Senator could tell the jury about the
of the first skeleton" draft
Of the guarantee contract which he
had dictated. Thomas was acting as
attorney for Humphreys.
Harry NJ. Blackmer, chairman of
the board of the Midwest Refining
Co., was the man with whom Humph-
reys, in November, 1921, had first
for the sale of 10000 900
barrels of oil. Blackmer scooted off
to Europe at the time of the Senate
and when last heard
from was in Paris. He is q witnesi
the Government is extremely anxious
to have appear but he refuses ID
emerge from his European refuge
The names of Stewart, Blackmer, Sin.
clair. IL. S. Osler. president of thG
Continental Co.; James O'Neill. presf
dent of Prairie Oil & Gas Co., and
Beman. Dawes, president of the Pure
Dill Co. and brother of Vice President
Dawes, were bre.Jsht into the confer
snce by Thomas.
Guaranteed Contract.
The evidence showed finally that
was told by Blackmer
hat the Continental Trading Co,
would become the vendee of the oil,
which subsequently went to the
Prairie Oil & Gas Co. and the Sim
lair Crude Oil Purchasing Co. The
company was then un-
lnown and when Humphreys inter-
posed some objection, O'Neill and
sinclair agreed to guarantee the per-
ormance of the contract.
Besides the guarantee contract.
Thomas explained, there was a Sec
md contract by which the Prairie
md Sinclair companies were to get
o per cent of all of the production
II the Humphreys wells after the
lrst contract had been executed.