The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-04-24
Shared With Three Others
in continental Mystery
Profits, He Says.
S759,5OO GIVEN TO HIM
Bonds Have Been Turned
Back to Sinclair Firm,
Committee Told.
BIZ Tnitcd PrcSs

WASHINGTON, April 24.-Robert
w. Stewart, chairman of the Indi-
ana Standard Oil Company, today
admitted to the Senate Teapot
Dome committee that he was the
fourth man to share in the mysteri-
Gus Continental Trading Company
deal-along with Harry Sinclair, H
M. Blackmer and j. E. O'Neil
Stewart said he received $759,500
of Continental Liberty bond profits,
but that he never kept them per-
sonally. He gave them in secret
trust to Roy ]. Barnett, a tax ex-
pert of his Standard Oil Company
They were delivered to him, he
said, by H. S. Osler, Canadian Or
ganizer Of the Continental.
Last Saturday, Stewart said, he
informed directors of the Standard
Of the deal and they voted to turn
the bonds over to the Sinclair Crude
Oil Purchasing Company-the COM
pany which bought half Of the oil
from the Continental.
Admits Cashing Coupons
Stewart admitted he cashed in
terest coupons and used the money
personally, but said he had given
up bonds to make up for the
amount
The trustee never has made an
income tax return, he said.
Il don't see how he could. with
the ownership Of the bonds undeter-
mined" he explained.
Stewart further admitted that he
considered the handling of the
bonds AN unusual course of pro-
cedure."
Altogether he made a strong
chapter to the long sought history
Of the bond deal, which the COM
mittee and Government oil counsel |
have been trying to trace for five
years.
Sinclair has been on trial, Black
mer and O'Neil fed to Europe, and |
Stewart was facing contempt pre-
ceedings for his refusal to testify |
Moved by Sinclair Acquittal
Stewart said he decided to tell |
the story because of the acquittal |
Of Sinclair in the conspiracy case
here last Saturday.
Before Stewart went on the stand |
Chairman Nye indicated the con-
tempt proceedings against Stewart
would not be dropped, no matter
what he testified.
On Stewards previous appearance
before the committee, Feb. l, and
2, this year, he declined to answer
questions about the Continental
deal, although he said he never had
made dollar out of the deal per-
sonally.
Sinclair himself now has con-
sented to appear before the COM
mittee next Tuesday. Chairman Nye
said also he would attempt to get
Justice Bailey to yield the deposi-
ton of former Secretary of Interior
Fall, which was taken as evidence
in the Sinclair trial, but not intro
duced.
May Get Fall to Talk
If Bailey declines, the committee
then will try to get Fall to tell his
story, cleaning up yet another angle
of the famous oil cases.
did you tell John D. Rockefeller,
Jr., about this trust with Barnett"
Chairman Nye asked Stewart, dur
ing the course of questioning.
mo, sir, didn't tell him." Stew
art answered, with a laugh. Rookie
feller, heavy Standard stockholder,
had attempted to get Stewart to
tell what he knew about the mat
ter.
Stewart then asked the committee
if he could purge himself of pend
ing contempt charges by answering
questions he previously had declined
to answer.
Stewart said he was led into the
deal because Standard of Indiana
wanted MeXia Oil from A. E. Hum
phreys, producer in that Texas field.
The Continental firm bought the
MeXia Oil and reSold it at a good
profit.
Knows Nothing of BIackmer
Stewart said specifically he knew
nothing Of Blackmer's connection
with the deal, although Blackmer
was then head of the Midwest Re-
f1ning Company-a Standard Oil
subsidiary.
He testified that interest on the
bonds had not been collected since
1928, "to avoid newspaper pub
licity."
Stewart said he could not remem-
Der the amount Of bonds OSler gave
him at various times.