Evening star., 1928-04-11

ground. where 1t is subject to constant
G. 7. Stanford. counsel for Sinclair
and general counsel Of the Mammoth
on Co. which was organized TO operate
the Dome, testified briefly as to the for
nation Of the corporation on February
90. 1922. with capital of 1000, 900 shares
without par value. This capitalization,
he added. was increased a short time
later TO more than 2,o0O, 600 shares and
with the exception of the few shares
held by the incorporates, all the stock
was issued TO Sinclair.
Gave Lease for Stock.
In return for this stock Sinclair con-
veyed the lease on Teapot Dome to the
company.
Following this testimony Sinclair's
formal application, under date Of March
Il. 1922. 10 Fall for lease on the
Dome, in which Sinclair said IN the
event he is granted a contract he VIII
become owner Of all capital stock OF
the Mammoth Co. and personally
guarantee that concerns performance.
was read 10 the jury. The formal ap-
plication was included in Sinclair's let
ter and also read TO the jury.
The testimony OF Zeyely at the
Cheyenne civil suit proceedings relating
% the visit Of himself and Sinclair 10
Fall the last week in December, 1921,
was read by Roberts 20 the jury and
showed that the question Of leasing
Teapot Dome was brought up only once
and very briefly at that. Sinclair In
ousred If FAN would lease the Dome
ard Fzil said an investigation then was
in progress and upon report he would
O7xsfa
testimony could throw no light on how
Sinclair obtained the proposals he made
IN his proposition TO lease the reserve
or where ne learned Of the requirements
then considered necessary before the
lease would be granted 70 any one.
Upon the completion Of this testimony
Roberts read the lease itself. bearing
date Of April 7, 1922. between the
Government and the Mammoth OIL Co.
Everhart Tells Of Deals.
Everhart, called 70 the stand by the
Government yesterday afternoon.
proved a better witness than he did
last october. when ne refused 70 tell
the court and jury from whom he re-
cs!ved more than $250,00 in Liberty
bonds and cash on the ground that 70
Go 80 would tend TO incriminate him
Since that appearance the statute 0f
limitations has been reduced from six
20 three years, and Everfart showed no
hesstancy in detailing his transactions
with Sinclair which began q month
after the Teapot Dome lease was given
u the oil Faagnate by Fall. These trans
actions, EVerhart testified were as fol-
lows:
May Is. 1922, In sinclair's private
car a. Union Station here, he received
aiss 600 ia Liberty bonds first 5iz
issue. as part payment by Sinclair for
ofle~tflIrd interest In the Three Rivers
Cattle IL Land Co. Of which Fall was
the owner along with EYerhan I.
4 short time later, IN New York. he
received SIS 00c as final payment on
that interest IN the ranch property At
the same tine he received 81. 100 which
Sinclair said was 70 be spent on i'm
prove en- In me latter part of 1872,
g. Three Rivers. he received 10000 in
cash az loan which vas used in clear
ing up an accumulated indebtedness. and
the fnai sum. E25 900, vas turned over
20 Washington In January 1923, which
slso vas for improvements,
Says No Records Were Kept.
Per all these advances. Sinclair re-
ceiged no receipts and Pail made no
Feoor- on the books of the company.
the witness said in answer 70 questions
by fsoDeTtE
Roberts produced q stack certificate
b. gk tige cattle company and pointed
" stub On which Was written. M r
mart. trustee" The witness ez-
Ilainec that ~ the time Pail wrote that
EtlIb ard the corresponding STOCK cer-
tifca5e ne told EyeTh&rt that he was
- ~ trustee for Sinclair. gipclalr's
name dle not appear IN the stoeE BOOK
A. the tnle EgerhaTt received &i I01
from GluciAlT FOR improvements the
witness Galo he gaYs Sinclair a CHEEK
foT . Ike amount Ia payment for Gons
cattle TIE Oh naagnabe had sent W Fall
The former interior Secretary though
II should be psid for, the witness tes.
fjfec, an1, therefore, instructed his
Gf3a~5n-iaY ~ turn oyer q check "
Atnels3F