The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-02-11
Two Bankers to Go Before
9 Quiz Group Peering Into
II. Secret Deal.
YOUNG o'NEIL ABROAD
Followed Father to Europe
7 Last September; Treas
Is ury Cashed Bonds.
BY PAUL r.. MALLON,
United Press Staff Correspondent

!, WASHINGTON, Feb. 1.-THE
Federal Government planned two
decisive steps today in it's attempt
''to learn what became of $4,000, 900
Liberty Bond profits of the Cont
mental Trading Company, mys-
teriously organized by Oil men in
1927.
United States Attorney Peyton
Gordon was to ask the District of
Columbia grand jury to indict Col.
Robert w. Stewart, board chairman
of the Standard Oil Company of
Indiana, for refusing to tell the SEN
ate Teapot Dome committee what
he knew about disposition of the
bond profits and whether he had
discussed such matters with Harry
Fl Sinclair.
At the same time, John D. Rookie
teller, Jr., owner of stock in Stand
ard Oil units throughout the coun-
try, was to appear in answer to a
subpoena before the Senate commit
tee to disclose what he knew about
activities of any officials of his COM
panies in the Continental deal.
Ask Stewart Indictment
He was to tell aprticularly of con-
1Versations he had had with Stewart.
Senators Nye and Walsh of the
Teapot Dome committe, after ques-
tioning Rockefeller, we're to testify
before the grand jury regarding
Stewards refusal to ansewr ques-
,tions. "a
i" Indictment of Stewart was to be
sought under a section of revised
statutes making it an offense to
refuse to testify before a congress
.sional committee of inquiry. 1t was
r1lnder this same section that Sin
clair was indicted and convicted
many months ago. Sinclair has ap-
pealed.
Rockefeller's appearance this
forenoon draw great interest. He
had written Senator Walsh of
Montana he willingl would give the
conmitte every possible aid in
clearing up the Continental deal.
n. Bankers to Testify
Walsh hoped Rockefeller might
know some of the facts Stewart de-
clined to reveal-evidence needed to
trac ethe Liberty bond profits. The
committee also desired to ascertain
whether Rockefeller intended to
discharge Stewart from his Stand
ard Oil post.
Walsh called, in addition, G. S.
Howard and A. w. Rice of the New
York branch of the Dominion Bank
of Canada. for records of bond de-
posts made by H. S. Osler, missing
head of the Continental company,
and other oil men.
The committee has learned pri-
vately that more than 100000 of
the missing bonds have been cashed
at the treasury department and may
T: be traced there. Names of these
:. who caShed the bonds are expected
Il to be brought out at the public
y hearing later The names have not
3 yet been learned by treasury inves-
Z tigators.
Z An effort may be made to induce
Y wayne ~ IN6ll. SUI vi GllC IllAoolllS
z oil man. James E. O'NeD, to return
( from Europe, committee members
/ indicated.
! O'NEIL FOLLOWS FATHER
ONeil followed his father to
Europe last September, the COM
n1ittee was advised by United States
(. Marshal Moore. of Brooklyn, who
E had been ordered to subpoena
young O'Neil at his last residence,
! Garden City, Long Island.
I Walsh also has developed that
I a portion of the 100000 in bonds
/ which the elder ONeu, conscience
\ stricken, ordered his son to repay
to the Prairie Oil and Gas Company
: arc not Continental bonds. He said
he had been informed, however,
that young ONeil merely made a
mistake in removing the bonds from
a safety deposit box.
Rockefeller arrived here last
night. BY coincidence. he was
assigned to the same palatial hotel
suite where Stewart was held
prisoner" one night last week i'm
mediatelY after he refused to testify.
Stewart won his freedom next day
on writ of habeas corpus. The
Governments suit to dismiss this
writ will take at least a week more.