Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-25
Continued from First Page.)

L
Dome INQUIRY now being resumed ana
at subsequent court trials has estao-
lished that after that Fall retired as
Interior Secretary and before he went
to Russia as SinclairS agent IN OIL
negotiations he received S2o,Ouu IN
bonds from the oil man, and that ne
received 100000 as a loan from Ed.
ward l.. Doheny after the latter leased
the Elk Hills, Calf. naval OIL reserve.
Thus the total paid TO FAN STANDS III
the records at S394.0o0.
Thought Deal Ordinary.
After he left the stand Everhart said
he was not informed whether Fall was
aware of his intention TO TESTIFY, ana
/ that he felt impelled to tell what he
knew of the transaction. He said tnat
to him il was never more than an or
binary ranch deal and that If 1t was
anything more I did not know It."
The money paid to Fall by Sinclair
through Everhart. the witness said. was
in payment for a third interest IN
Falls properties. Testimony at the re-
cent Fall-Sinclair trial was that the
bonds were a part of the profits Of the
Continental Trading Co. Of Canada,
which contracted to buy oil from the
late E. A. Humphreys of Denver and re-
sell it to the Standard Oil Co. Of In
diana. the Sinclair Crude Oil Purchas-
ing Co. the Midwest Refining Co. and
the Prairie Oil g. Gas Co. The con-
tract. 1t has been testified, was guaran-
teed by Sinclair. Henry NJ. Blackmer,
| former chairman of the board OF the
Midwest; James E. O'Neil. former presi-
dent Of the Prairie Co.. and Robert w.
Stewart, chairman Of the board OF the
Indiana Standard.
Profits Set at 100000.
Profits of the now extinct Canadian
Corporation are alleged to have totaled
ca ff,, 600 and the Senate committees
| new Investigation Is aimed to deter
| mine what became of the remainder OF
| that money. Several former directors
| of political campaigns may be called TO
testify whether any of = found Its way
| to their Golfers, as has been rumored.
One witness, A. c. Downing. secre-
tary of the New York Trust Co., al
ready has given the committee records
showing that Liberty bond transactions
totaling more than 81, 900 900 by Black
mer were completed through that
| bank. Blackmer now is in France and
has refused to come here TO testify In
the Fall-Sinclair case.
Eyerhart's story to the committee
concerning the land deal was that It
was to divide his and Falls ranch
holdings into thirds. one portion TO 60
TO Sinclair In exchange for the oil
mans payments TO FAN. He testified
that the details were arranged by Fall
and Sinclair before he got into the
deal. and that he merely acted as
agent In transferring the money and
handling subsequent details.
Planned Riding Club.
He said that Sinclair had intended
to develop a hunting and riding club
on the property. although that project
has not materialized. The money re-
ceived by Fall. Everhart said, was TO
pay of Falls debts on his property and
to acquire other land. The witness said
| the payments by Sinclair were La bonds
| and cash and that the money was
handed over personally by Sinclair either
at various meetings In Washington or
| In New York.
Sinclair. here on account OF his hear
ing In the District Supreme Court on
| a contempt charge growing out OF his
| Joint trial with Fall on a criminal con-
spiracy charge, has refused TO make
| any comment on Everharts testimony.
| He Is under summons TO 60 before the
committee
Upon leaving the witness stand after
| being questioned for more than an
| hour. Eyerhart said he did not know
! whether Fall was aware OF his plan
TO tell the details OF the bond transac-
ton.
g: had to tell my part" he said, "in
fairness TO my family. / could not
| keep still any longer because 1t was
never any more TO me than an ordi-
nary ranch deal. II 1t was anything
more did not know IT."
Everhart. the first witness when the
hearing started. told a somewhat vague
| and involved account of the refinancing
Of New Mexico ranch properties held by
| himself and his father -in-law.
Ranch Shares Exchanged.
The ranch properties were 10 be
Jumped and the one-third interest sold
! 10 Sinclair, the money 10 be used IN
| paying OF the Indebtedness Of the Tres
| RitOs Land ~ Cattle Co. Falls personal
debts and the balance due on the Har-
Kiss ranch. adjoining Tres Ritos. which
| Pail had taken over.
There vas scheme by which a part
u Tres Ritos would be converted into
the Hunting IL Riding Club. and IT.
appeared 10 Everhart that Sinciair's In
terest Of one-third In the newly organ
3Nrfs fdfSEIl CDjiUdsBy Was Dfl AAEDuIil vi
the prospective organization Of the club,
which never has materialized
The 100 shares ~ the stock Of the
Old Tres RitofH Co, held 50 shares
by Fall. one share by Eyerhart In his
own right ana 40 shares as trustee for
his Wifes estate, were exchanged for
100 shares of stock IN the new COM
pany Eyerfart said this stock was
divided 80 shares u himself. 80 shares
~ him AZ trustee for Sinclair and 80
shares 10 Fall with one share " an
empl0ye NJ the company ~ he might
qualify as a director
Einciair'e payments, egerhhft said,
were made ~ Washington and In New
York and were IN Liberty bonds The
deal finally was consummated IN Fails
offlce in The Interior Department and
! then Sinclair and Eyerhart went 10 the
Oh Operators private car, where SiJS.-
900 IN Liberty bonds were paid over,
Egerhaft said he delivered these
tygnds " Fall, who took 81 500 worth
ana gave him the remainder, instruct
ing him " proceed then " New YORK
~ collect the balance due ~ $33 900,
This he did, he added. Einclair hand
ing him the bonds In the oil mans
New York office.
Shipped bends West.
Ibid you take the bonds 10 PuebiD?"
inquired Senator Walsh NJ Montana.
committee prosecutor
mo. l shipped them there ~ The
FIRST National Bank" Eyefhart re-
Piled
JlAe witness then proceeded ~ his
h4tae aud made distribution of the
bonds ss directed by Fall. paying 500, p
900 ~ the N Is Thatcher estate Oh
acoouut VI ths Tres ItitDs Go fsbtE
Personal debts III tie former Interim
Secretary which he said brought the
Total up ~ sl40. 300 The femhining
! Sau auu WERE tlthgpd iu Falls kafFi "