Douglas daily dispatch., 1928-02-23
OIL
PROBE SHOWS.
MANY PHASES
Decision in Stewart Case Is
Expected Today From
U. S. Court
REOPEN INQUIRY
Push Investigation of PO-
litical Use of Oil Lib
erty Bonds
INQUIRY

WASHINGTON, Feb. % CP)-While
the senate oil committee is seeking
Amore light on the mysterious liberty
, bond transactions of the Continental
Trading company tomorrow, Justice
Jennings Bailey is expected to hand
down his decision as to the right of
the senate to arrest Robert w. Stewart,
standard oil official, because of his
refusal to answer certain uestions be-
fore that committee.
Stewart, who is at liberty on tenn
porary writ of habeas corpus, will be
in the District of Columbia supreme
court as will David S. Barry, sergeant
at-arns Of the senate, who, with John
McCrain, his deputy, arrested Stewart
here after he refused to say whether
he had knowledge of the liberty bond
transactions.
Should Justice Bailey dismiss the
temporary writ Stewart would be re-
manded to the custory of the sergeant
at-arms, but he would escape immedi-
ate arrest by noting an appeal from
the decision Should the writ be made
permanent the government will appeal
so that in any event the case finally
court for adjudication.
Since 80 days is allowed for perfect
ing appeals to the District of Columbia
court of appeals the case is not likely
to be finally decided until after the
end of this session of congress, ex-
pected late in May or early in June.
It was in the District of Columbia
supreme court where Stewart will ap-
pear tomorrow that Harry F. Sinclair.
Henry Mason Day, a business associ-
ate, and w. j. Burns, detective, were
sentenced yesterday to Jail for their
part in shadowing the jury in the Fall
Sinclair conspiracy case last fall 1t
is in this court also that Sinclair and
Albert B. Fall are to appear April 2
for a new trial on charges growing
cut of the leasing of Teapot Dome to
the wealthy sportsman and oil op-
orator by Fall while secretary of the
interior.
For criminal contempt in connection
with the jdry shadowing Sinclair was
sentenced to Jail for six months, Day
for four months and Burns for ID
days, while his son, w. Sherman
Burns, received a 81 1000 fine. All not
ed appeals and were released on bond.
In reopening the Continental in
ouiry tomorrow after a recess of nearly
| q week the Teapot Dome committee
will seek to establish particularly how
much of the $3,080,000 in Continental
bonds reached the republican national
committee to help wipe out the deficit
after the Harding campaign in 1920.
The senate committee has definitely
traced $4,000 in such bonds to the
republican national organization in
J 1923 they having been used t opay off
note at the Empire Trust company
| in New York. Sinclair gave the re-
publican committee that sum and since
! is known to have been in possession
of some Continental bonds it is as
sumed that he furnished the bonds.
Investigators for the senate have
found now that banks in New York
Chicago and Boston made loans to the
/ national committee and officials OF
these institutions have been summon
ed here to tell how the loans were
negotiated and how they finally were
liouidated.
The officials summoned are William
H. Gilkes of the Continental National
Bank and Trust Co., Chicago; John
Prentice of Chase National Bank, New
York; N. c. Lenfestey of National City
Bank, New York, and D. B. Blaisdell
of First National Bank of Boston
In addition Graham Youngs, treas
urer Of Blair and company, New York
and Harold w. Kenwell, assistant
treasurer of Hyva corporation, Sin
clair's personal company, have beer
summoned for tomorrow. They, too
will be questioned about any Con-
tinental liberty bonds their concerns
may have dealt in between 1921 ant
1925.