Evening star., 1928-05-02
SINCLAIR SAYS He
AVOIDED BOND TALK
Declares He and Stewart
Never Spoke of Getting Con-
tinentaI Securities.
Ry the Assoclatsd Press.

By the Associated Press.
Harry F. Sinclair told the Senate
Teapot Dome committee today that he
and Robert W. Stewart, chairman oi
the board of the Standard Oil Co. OF
Indiana, frequently discussed the Con-
tinental Trading Co. oil deal, but that
neither disclosed TO the other that ne
was getting bonds from the Continental
or from II. M. Blackmer, who was de-
scribed as the principal figure in the
transaction.
Testimony before the committee has
been that Stewart and Sinclair received
more than three-uuarters OF million
each after the Continental had sold OF
to their companies at Q prof1t OF q
cents q barrel. This money, they have
testified. has now been turned back Il
the Sinclair Crude Oil Purchasing Co.
owned Jointly by the Sinclair anc
Standard Of Indiana interests.
Sinclair said today that his oil con-
Germs and the Standard Of Indiana en-
tered into partnership for business
reasons"
Declared Advantageous to Both.
at was advantageous to both" he de-
clared. explaining that both his COM
DanieS and the Indiana Standard nao
large refineries in Chicago and Kansas
CITY and they went in together ON the
Sinclair Pipe Line Co so as to get OIL
to those rsfineries.
This ended the sharp competition
between the companies?" asked Cnar-
man Nye.
There was no competition in the
transportation of OIL" Sinclair replied.
You and Col. Stewart guaranteed the
contract between the Continental and
Col HlfnphreyS?" Nye pursued. "a E,
Humphreys of Denver, who sold the oil
to the Continental)
II did not guarantee the contract per-
Sonally. It was subject TO the approval
of the directors of my company" Sin
clair replied. He added that the liaeil-
ity under the contract was not very
large as payments for the oil were not
made until delivery had been hade.
1T was one of the largest oil con-
tracts ever known. was 1t nots"
II would not say so. as I have not
seen all the oil contracts"
Asked About Visit to Fan.
What was the occasion Of your visit
to Mr.. Albert B. Fall in November
1922"
II went down there to see about the
lease of naval reserve No. (Teapot
Domel and Usage Indian oil lands"
Sinclair's attention was called 10 the
fact that those matters were discussed
on his visit to the former Interior Sec
retary in December. 1921.
"oh, yes, I went there in 1922 to dis
cuSs ROYALTY oil from the Salt Greek
fields," he explained.
rs 1t not true that your bid for that
royalty oil was made after the adver-
tised hour for receiving bidS?" Nye pur-
sued.
II cannot say"
Can you tell how you gained con-
troll OF all Of the royalty oil rights IN
the Salt Greek flelds"
The only control my companies have
TO any oil in the Salt Greek field was
based on the bids made to the Interior
Department"
You were not then In control and
have since gained eontrol2"
I'VE have not. wish We did
Nye read into the record a telegram
from Fall To s. g, Finney, Assistant Sec
retary OF the Interior dated November
is, 1922. ordering a delay In letting the
contract for the Salt Greek ROYALTY
oil, explaining that three midcontinent
companies and Sinclair would bid ON
this oil
Faced $i.eoe.ueao Loss.
Senator Walsh Of Montana drew frum
Sinclair that in guaranteeing the conti~
mental contract he took a chance ON the
concern paying Humphreys for the oil.
The Montanan said that IN one month
Sinclair ran the risk of losing 81. .00o. 600
for his companies Is the payment TO
the Continental was made ive days IN
advance OF the time the Continental
was required 10 make payment TO
Adverting 10 the statement made hy
Martin w, l,lttleton OF counsel for sun
clair at the oil magnateS firSt trial for
Senator Walsh inquired As
to the declaration that IL would he
made clear that Sinclair never mad
any bonds OF the kind that had been
described by owen J Roberts ef spe-
cial Government oil eounsel~-c -cunti-
mental Trading Co bonds,
What have YOU to say 10 thata" the
asked
Sinclair heSitated and then whiSpeled
10 tittleton who again sat Co his left
"All have 90 say about it ne IlnallN
said, lis that was the opening state
ment III my counsel
Iittleton interrupted 10 say that NJ
did not think that the raising Of the
question Of accuracy between laNnlan
and his attorney was Within the pAllview
'co"'i@ued on faS >, Column -