Evening star., 1928-04-11
$4,000 IN BONDS
DEPOSITED BYFALL,
OIL WITNESS SAYS
Bank Officials Testify That
Securities Were Placed
in Several Accounts.
0vERTURES FOR LEASE
ON TEAPOT DOME TOLD
Blackmer Faces New Contempt
Proceeding-Assistant Secretary
Finney on Stand.

The Government today again moved
forward rapidly in the Sinclair con-
spiracy trial, presenting testimony and
evidence to show that 500, 600 Of the
Liberty bonds given NJ. 7. Everhart,
son-in-law of former Secretary OF the
Interior Albert B. Fall, by Harry 2. SIN
clair, oil magnate, had been deposited
In several banks TO Falls credit and
that Sinclair made overtures 10 Fan
the last week In December, 1921, about
a lease on Teapot Dome, and a month
later submitted a proposal, agreeing 10
carry out the requirements urged By the
Navy. 1t topped OF the morning ses-
sion by putting its star witness. e C.
Finney, first Assistant Secretary Of the
Interior, on the stand.
during the morning session the Gov
eminent also laid the foundation for
another contempt of court Droceadin,
against II. NJ. Blackmer, missing Coz
eminent oil witness, who refused to an
pear at the October trial. though sllb-
poenaeo, and who was not IN court to-
day When his name was called 10 take
the STAND. Blackmer is wanted IN con-
nectlon with the Continental Trading
20. OIL deal, but since the original SEN
ATE Teapot Dome Investigation he has
oeen living in Europe. The Govern-
ment oil prosecutors asked that BIack-
merS name be called and the CLERK Of
tne court pronounced it three times.
WINE oeputy United States nlarshaN
rushed out into the Corridors vsIIi,,e,
n. M. Blackmer."
-, Satisfied that he was not To be fo,,n1
tne OH prosecutors proceeded with thefr
case. -sAA >A19H
finney Repeats Testimony.
Mr. Finney, whose testimony az the
triaI vas high point in the Govern.
ments case, repeated again TODAY IN
the stand that he was CHARGED uith
supervision Of oil leases: that he rad
NO part In the preparation OF the Tea
POT Dome lease; that he never saw a
oraIt OF the lease. and did not know
OF us signing until several DAYS after
y nad been executed by Fall for the
moth OH Co.
Finney also testified that Fan had
gwen orders to all bureau heads IN
the department that no Information
vas 70 De given out about the lease.
ano, ne added, no public notice or ad-
Vertlsing for bids on the Dome vas
gwen The practice Of granting leases.
Fnney explained. was first % advertise.
or serve notice in some other manner.
except In those cases where the statutes
gave preferential right due 70 prior
claims. During the period iesdins nv,
70 the signing of the lease Finnev de-
cIared he received numerous written
ano oral inquiries for information from
interested persons and COMPANIES
Whlle the conspiracy trial was IN
progress. Sinclair, through his attorneys
MEG brief in the Court of Apoesls
today IN support OF his appeal from
conviction last year on a charve OF
contempt OF the Senate. He was SEN
.enceo 10 three months IN the District
jan and tne OF $500. A hearing may
oe neld next month or may 80 over
Sntu @ tne october term Of court. The
brief covered u pages.
Bank officials Testify.
Everhart took the stand when eonrs
opened this morning for Continuation
OF croSS-examination, but after a brief
conference among defense counsel IL
was decided 70 excuse him. Then Rob-
ertS laid the groundwork for tracing
the various bank transactions OF Fall
with respect 20 the money and bonds
Sinclair had turned over to Eyerhsrt.
he called five bank officials from Fl
PaSo, Tex, and Carrizozo, n. Mex. 10
Identify deposit slips and ledger ac-
counts ,otaling $4,000 and representing
Fails deposits II these banks. Having
identified these. he showed the lury
documentary evidence that $4,000 IN
Liberty bonds had been deposited ey
Fail in the First National Rank OF II
Paso. $S0,0o0 in bonds in the ExchanSs
Bank OF CarrisoSo and $4,000 in the
First Natio"al Bank Of Pueblo, Colo.
the laSt-nanled sum having been placed
10 the credit OF the Three Rivers Cattle
N Land Co, Falls ranch property. On
croSS-examinatton one Of these officials.
Albert u. Brownfeld. receiver for the
exchange Bank. revealed that when the
oank failed. IN October. 1923 Fall lost
nearly $500 Of the original deposits
vouchers showing the absence Of
Eal nom Washington on certain dates
then were placed in evidence and these
We're followed by q teleGram dated De-
cemoer 80, 1921, fron {. "a SafyerS
FallS secretary. to the former cabinet
ofreer at his New Mexico home. which
stated that Sinclair and the late J W.
aevely, attorney for the oil marnats.
desired to see Fan ON y very urxens
ana important matter" rails reply
was that he would be much Pleased
10 receive q visit.
Lease Proposal Presented.
This visit was made the last week
IN december, 1891. and then Roberts
placed before the Jelry q propoSal made
oy Sineiair on February ). lsa2, for .
lease ON Teapot Dome. Sinclair would
undertaSe development Of TeapOt nasaae
ON the following conaitsonS That ne
oe given y contract 20 take out al oil
III the reserve; that he pay a reasonable
roSalty agreed upon hy the Govern
inent and himself, that he propoSeS 70
develop the propertys that tnaSYnNeh
as transportation facilities are made
QuAte he would build sufficient storage
TANKS 70 take care Of production until
such time as the volume warrants c,n-
Suuctton or q pipe line l,N0e mites
loags that he would furnish for the use
~ tue NAVY on the Atlantic and duEt
coasts Ioel OH IN exchange for Oil pro-
dueed FOR the Navy and woald supply
steel tank storage, he would quiet al
claims against che reserve.
and suggested leasing by auction 20 q
number 1 operators would result In a
multiplicity or accounts and 4 number
az tenants 20 deal With,
IL Was his opinion that the reserve
should ee contracted to one interest and
ne pFopoSal added that inaSmuch as
Teapot Dome Is hetng drained by wells
M nearby property, lease would insure
al for the Navy available for instant
use. sinclair concluded that the OIL
would be more valuable for the Navy
peKvNment IN storage than under
tCAantinued an paqe 4 Cehsmn