The Washington times., 1928-04-24
StelOart Got $759, 900
of Slush Bonds
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excused as q witness In the Sinclair
case II will be very glad TO answer
any questions for yOu."
Offered Part Of Profits
Stewart said he. first learned he
was to share in the Continental
profits when he met Osler in Chi.
cage on November 26, 1891.
"Osler said that part Of the
profits of this company would be
given to me-" said Stewart. II told
him didn't want any Of the profits.
but he said would get them and
1 could do what wanted to with
them. That was the first time /
heard Of any disposition to give me
q part Of the profits"
Stewart said he Immediately de.
cided to create q trust fund" to
hold the bonds for the Standard
OH of Indiana and the Sinclair
Crude Oil Purchasing Company. He
did so, making Barnett the trustee.
Il thereafter met Osler in New
York and from time to time he
gave me packages of bonds" said
Stewart. II took the packages to
Chicago and turned them over to
Barnett. l received four or five
packages in this way and it was
May, 1929. when received the last
package"
Cashed Coupons
Stewart said he put a copy Of
the trust fund" agreement in his
safe deposit box with instructions
that 1t he opened in event of his
death. This arrangement, he ex.
planned, was made to make sure
that the bonds would be turned
over to the two oil companies If
he died.
Stewart said he twice cashed
coupons off the Continental bonds
The first time was in June. 1922
and the second in June, 1898. Each
time, he said, he returned to Bar.
nett batch of new bonds. e0uaI
to the value of the coupons. He
bought the new bonds in the
market, he added.
Barnett cut the coupons or I
may have helped him." said
stewart. II deposited some of the
coupons or used them for cash."
Stewart explained that his reason
Tor turning, the Continental bonds
over to the two oil companies was
that he believed they belonged to
the companies which he repre-.
scented.
Stewart told of first getting into
the Continental deal when he went
10 Texas in an effort to buy oil
from A. E. Humphreys, Texas oil
man, for the Standard OH of
indiana. When he learned he was
to share in the Continental profits
derived from the purchase OF oil
from Humphreys, he said, he de-
cided to turn his share over, half
to his own company and half to
the Sinclair Crude Oil Purchasing
Company. which had bought half
or the Humphreys oil from the
Continental.
Eager To Talk
Stewards attitude was entirely
different from his demeanor on his
previous appearance as a witness.
whereas then he was belligerent,
pounded the table, shouted at COM
mlttee members and finally defied
the Senate. today he was eager to
talk, tractable and frank. On one
occasion, he said today, I'm not
attempting to fence with you-no,
I'm not"
Stewart was questioned at length
about the deposit slip, dated De-
cember Is, 1923. which showed he
deposited 3,903.75 in Liberty bond
in the Continental and
Commercial Trust Company in Chi.
Cago. Stewart said these coupons
came from hts personal holdings Of
Liberty bonds and not from his
share of the Continental profits.
Shown the deposit slip, Stewart
said:
This is indicative of nothing, as
l had lots of other Liberty bonds.
Il want to advise you, colonel
said Walsh, I'VE have the coupons
You deposited in December, 1922,
and In December. 1923. and our
investigation shows that some Of
the coupons deposited in December,