Evening star., 1928-05-29
OIL MEN FLAYED
IN TWO REPORTS
Nye Says Frauds Are With
out EquaE-"ContemptibIe
SteaI," Says Walsh.
By the Associated Press.

By the Associated Press.
Bristling with pungent terms Of de-
nunciation of the naval Oil leases and
the Continental Trading Co. deal, re-
port supplemental TO that approved
yesterday by the Teapot Dome commit
tee was filed today by Senator Nye, Re-
publican, North Dakota. chairman Of
this Senate investigating group.
1t went into the record along with
the report of Senator Walsh, Demo-
crat, Montana. who prosecuted the oil
Investigations and whose findings char
acterized Robert w. Stewart. Harry F.
Sinclair, H. M. Blackmer and James z.
ONeil as "conspirators" and de-
nounced the entire deal as Con
temptible private steal"
Never has the world known a case
involving a degree Of fraud. quite evi-
dent bribery, thievery, conspiracy and
corruption to compose with what has
come to be known as the Teapot Dome
Elks Hills-C Continental Trading Co.
case" the Nye report said.
Worth Half Billion"
"The leases involved in the case are
estimated to have been worth not less
than $500 900, 900 and were conSum-
mated, to use the language of the Su-
preme Court Of the United States, by
conspiracy. corruption and fraud
The investigation has uncovered the
slimiest of Shiny trails beaten by priv
lege. The investigation has shown, let
US hope, privilege at its worst. The
trail is one of dishonesty, greed, VIOLA
ton of Law. secrecy, conceaiment, eva
sion, falsehood and cunning.
1T is trail Of hetrayals by trusted
and presumably honorable men-be'
trayals Of government, Of certain
business interests and the people who
trusted and honored them: it Is trail
showing fragrant degree OF the ex-
ercise of political power and influence
and the power and influence Of great
wealth upon individuals and political
parties
"It is trail Of despoilers and
Schemers far more dangerous to the
well-belng of our Nation and our
democracy than all those who have
been deported from our shores in al
times as undesirable citizens And in the
end the story Is one OF the crushing
of brilliant careers when finally the
light was played upon those who
schemed those unhealthy schemes born
in darkness.
DepIores AcquittaIs.
'The acquittal verdicts in the Fall
Doheny and the Fall-Sinclair trials
have been considered most deplorable
failures Of justice on every side, except
ing only the side of privilege. These
failures have been Of such nature as
to prove the need for such changes In
court procedure that viii make advan-
tage no more easily available to the
criminal of great means than to the
offender who comes out Of the most
lowly classes.
Justice has been proven a thing not
20 De applied TO and enjoyed by all alike
out, instead. commodity TO be bought
and otherwise Influenced by wealth, and
able lawyers in the Congress and oui
would contribute nightly 70 the cause
OF our democracy II they would devote
themselves to such legislation as would
make Justice reach out to one and all
alike"
Reviewing the accomplishments OF
long years OF investigation, Senator Nye
SAID there was a prospect for "a general
houSecleaning In the oil industry" He
neid also that the investigations were
bound Ito bring some measures Of
political reform"
In his report filed yesterday Senator
Walsh reviewed the history az the
Continental Co.'S organization TO blv
and sell oil In this country and declared
there was a general belief that it's
S3,08O,000 profits were TO be devoted
and perhaps had been devoted TO cor
rupt use OF one for another, +"
since $233,000 In Liberty Bonds
purchased with the profits had been
traced from Sinclair to Albert b. Fall,
former interior Secretary, about the
time OF the lease OF the Teapot Dome.
Robbed Own Firms"
1T seems now. however," the re-
port ADDED, TO have been ill-gotten
gains OF contemplate private steal
the peculations of trusted officers of
great industrial houses, pilfering from
their own companies, robbing their own
stockholders the share of the Doodle
coming to one OF the freebooters serv-
ing In part as the price of the perfidv
OF member of the Presidents cabinet ="
Regarding the testimony that Stewart.
O'Neil and Sinclair had made restitu-
tion to their companies for their gains
in the transaction. Walsh said such in
tention was not apparent at the out
set.
1T Is impossible" he added, ito offer
any sane reason for taking the pains, or
going to the expense of organizing the
corporation device, or for paying OSler
tH, s, osler of Toronto, president of the
ContincntaD commissions amounting 10
100000 for conducting Its affairs. If
there was all honest intention that
the company should have the profits. I"
Taking the Treasury to task for de-
laying the collection OF taxes from the
oil deal when It's existence was known
to agents OF that department, the re-
port called attention that $4,000 900 In
taxes now had been recovered and said
IL was likely that much more would be
collected, lie argued that suit by the
Treasury against the oil men would have
brought out all the essential facts de-
yeloped by the committee. affording as
II would an opportunity to examine
under oath the participants In the
nnsayory affair. including Blackmer and
ONeil, before they fled beyond the
seas"
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