Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-02
STEWART, OIL KING,
FACING CONTEMPT
CHARGES IN PROBE
Standard Official BaIkS at
Questions in GriI|ing by
Senate Committee.
DECLINES TO ANSWER
QUERY ABOUT SINCLAIR
Witness Is Given Until Tomorrow
for Reply to Profit
Inquiry.
By thc Associated Press.

Sy the Associated Press.
Robert ". Stewart. chairman of the
board Of the Standard Oil Co. of In
diana. underwent a grueling examina-
tlon today al the hands of the Senate
a.. committee. and at the end he was
gwen until tomorrow to answer certain
Questions Of the committee under pos
s:e.e threat Of citation for contempt.
The oil nlagnate. after tracing his
connection with the celebrated deal
wherein the Continental Trading Co
@! Canada bought oil on the guarantee
@, himself and Harry r. Sinclair for
$3.50 a barrel and sold it back to their
companies for SITS. baked at the end
when he was questioned as to whether
he had talked OF the Con.inental's S
profits with Sinclair.
Claims Query Immaterial.
That is not material to this issue. y
ha shouted. Il want TO add that II
SEEMS 70 me that in view OF the pending
trial tthe Fall-Sinc!air trial.. and that
! am summoned as witness, and the
issues in that case are the same as
here ! think when this story goes In
il should go before the Judge and jury
The United States Senate has taken
the opposite opinion" Walsh said. The
TWO cases may be the same except that
the Senate Of the United States does
Tot admit il"
Near the end OF long session OF
the committee, in which Stewart was
connection with the activities of the
Continental Trading Co. of Canada.
s.nator Walsh. the prosecutor. asked
!. he had heard that profits OF the
company. whose contract to buy oil
Tas guaranteed by Stewart and Harry
p Sinclair had gone from Sinclair to
Albert B. Fall after the lease OF Tea
pot Dome.
After considerable sparring between
the interrogator and the witness. Stew
e.: said he was sorry that he could not
gre hea-Eay evidence. and when Walsh
asked him II he had read In the news
papers that Liberty bonds had be: n
transferred to Fau, he replied that he
Walsh said the transaction Indicated
that Stewart had a good reason for
signing the contract"
i never made o dollar out of this
transaction In my life" Stewart shouted.
You are insinuating that did, but I
&C not"
II am not insinuatins that"
Making his first public appearance as
q witness IN the long g-dra wn-out inYes-
legations. Stewart told Of the refusal
az the Standard Oil Co of Indiana
TO enter into a stock transaction with
the late A z. Humphreys explained its
initial failure to obtain the Oh after
garc turned over 70 the Continental
Trading Co OF Canada.
The committee. seeking TO disclose the
disposition Of profits Of this short-iiyed
company. called Mr. Stewart as a head
E1e witness. because he. with Harry
r Sinclair and others. guaranteed the
contract OF the Continental IN buyinp
me Humphreys oil al $50 a barrel
Ine Continental Immediately contracted
10 sell II back 70 Standard and Sinclair
subsidiaries at SITS
Stock Transfer Discussed.
I said. gentlemen. can't do that, :"
Stewart said, in referring TO the prop
osition for stock transfer proposition.
n stock transfer would involve a con-
taaued liability In stock dividends. /
said ] would buy the oil at as good a
crice as any one else. Humphreys
needed money. and be insisted on the
As 10 the deal where Stewart con-
tscted 70 buy the Continental oil for
81 IS barrel. the witness said that at
the New YORK meeting, where IL vas
co.lsuuaTnated. he was told by II M
Blzckner Of the Midwest Refining Co,
now missing In Europe. that there was
no chance for the Standard OF Indiana
70 buy It. because Humphreys wanted IL
" 60 70 pipe line companies. With Sin
clair ne guaranteed the ContinentaI's .
rontrSct. ne said. 10 show his good
faith.
He said he knew somebody would
make money, but that we wanted the
oil and made the contract"
Stewart was preceded on the stand
~ K O. Eeubert president of the Stand
src ~ Indiana, vino over and over again
when pressed about the contract. mere
ly reiterated that the Standard board
hso the utmost confidence In Stewart
sS trader.
During the examination o! Stewart at
the morning session no mention was
snade Of the ultimate disposition of the
CoKtineDtzIs profits. part OF which the
Government alleges went 10 Albert Is.
Pail after he ieased Teapot Dome "
Harry r Elnelsr
Walsh Leads Inquiry.
The chairman u the board Of ths
Indiana STANDARD concern was inter
Iygs15o by frnAtoT Walsh of Montana,
' iA'Jee eifpTts st solving the mystery
~ tsle nov cls,3n1linuec Canadian cor .
i5ofStlofa, are at persistent a. were
tflIse tiat led " tile uneartbing of thc
}eaiSyt Donle and Eik Hills naval oil
!FaAee scsf4cais tour years ago.
Sums = feet of committee tables
b%JStaLec ttse dynamic prosecutor and
l'4s falia>r vast bulk of the once eoun.
tfy lawyer = Jao has come W dominate
tie affairs u one of the largest oil
1InslJas4lss ig ule United States The
seens .a& lAAd IN the ornate denio-
tTslm conference room VI the EeIi~t<
once E0licii4g. where many startling
D.i& VI testimony we're given IN ths
asL5 inquiry
Beginning. Walsh brought out that
me Sinclair ConsoIioatec and the
5lanosfd VI h4clAna each owned iisif
Hyefesl& ia The Sinclair Crude Oh ca.
stio h4e Sinclair Pipe Line CO. spd that
me Companies LJ1ght crude oil from
ti't irsiTle Cil sEc Gas Go
Replying W Walsh, stewart said ne
""NIc ~ gisc W RiYe his best ieHisn~
~ sl4ef " ifik negoiistions WIT, A. II
humphreys iT ule purchase ~ The oil
"Vh "ii1fb the Continental finally
mace $1,000 900 pr0fit&
IL must " understood by are rom =
Ir1t1f ulst IT is only my Eest TsDlfnl-
Dfs4lcF" Stewart ssio
photographer started ~ take pie
tufes 81 tie wILI3e6E.
Il don't want 70 APPEAR ciAcoirteo1s
-. a