Douglas daily dispatch., 1927-04-09
TRIAL STARTS
APRIL 25 Of
X-SECRETARV
AIlege Former Interior Sec
retary Received $23O,OOO
In Bonds.
BANKERSCALLED
Doheny Moves to Quash
Oil Bribery Indictments
Against Him.

WASHINGTON, April 8 Up AL
though unable to locate the two
most important witnesses who sew
cral years ago placed themselves be-
yond the jurisdiction of Amerf can
courts, government counsel will un-
dcrtake to show at the criminal con-
apiracy trial beginning here April
25, that Albert b. FALL former in
liberty. bonds in connection with the
lease of the Teapot Dome naval
Gil reserve to Harry F. Sinclair.
The missing witnesses are jaime.
E. ONeil, formerly of the Pioneer
Oil company, and Harry M Black
mer, formerly of the Midwestern Gil
company, a Standard Oil company OF
Indiana subsidiary They resided in
France after leaving this country,
but subpoenas sent to american con-
suls in that country were returned
with the information from Consul
General George Orr at Paris, that
they could hot sbe located
O'Neil, Blackmer, Robert W. Stew
art, of Chicago, chairman of the
board of the Standard Oil company
OF Indiana Sinclair and H. S. Osler
are claimed to have organized the
Continental Trading company, Inc
under the laws of Canada for the
purpose OF buying and selling oil in
this country. Some of the profits
were converted into liberty bonds
and the government charges that
way to Fall.
Stewart is among the seventy odd
witnesses summoned for the Fall
Sinclair trial. Oslcr is a Canadian
citizen and consequently is free OF!
the jurisdiction of the American
courts. Sinclair, the fifth organizer
OF the Continental, is a defendant in
the trial, and cannot be called to
the stand by the government.
Bankers Of New York and Pueblo,
Colo, have been summoned in con-
nection with the charge of liberty
bond transactions. bankers at El
Paso and others also have been
subpoenaed to tell about the pay
mcnt of $4,000 to Fall by Sinclair
after he left the cabinet and just
before he made trip to Russia as
agent of the wealthy oil man ard
sportsman
WASHINGTON. April s R-.Nro-
tions to quash the oil bribery indicI-
wealthy California oil operator, his
son, Edward L. Doheny, Jr., and
Albert B. FALL former interior sec
retary, were taken under advise
ment today by Justice Hitz in the
District of Columbia supreme court
sitter a full day Of argument.
Frank j. Hogan and Mark r.
Thompson, fer the accused, contend
cd that since Fall had no authority
to lease the Elk Hills, California
naval reserve to Doheny's companies
the oil man and his son could not
have bribed him through the $780,
060 Little Black Bag" transaction
which figured so prominently in the
state oil investigations Former Ser
ator Atlee Pomerene of special gov
crnment oil counsel, contended that
Fall had assumed to act in his Of
ficiai capacity in making the leases;
that Doheny's companies took pos
session of the reserves and that tire
federal government was put to great
expense and Inconvenience in recov-
cring possession g. of them. Should
Justice Hitz sustain the demurrers
to the indictments, which We're re-
turned nearly three years ago, the
government could appeal to the Dis
trict of Columbia court of appeals.
Should he overrule the demurrers,
however, the defense would have no
right of appeal under the recently
enacted Walsh law and the defend
ants would have to so to trial.