Evening star., 1928-04-10
j. S. OPENS PROBE
Of SINCLAIR FUND
$4,000 Securities Delivered
to Bank by Everhart,
Cashier Says.
tcontinued from First PageA

CONTINUED from FIRST Pageo
and secrecy: that this transaction was
Evidenced by a note given by Fall. but
this note was not given to Sinclair but
was given to Sinclair'S lawyer. Zevelv,
and that the bonds forwarded at this
time were forwarded by zevely TO Falls
bank under circumstances which spell
secrecy and an endeavor to hide the
transaction"
Roberts said 1t would be the purpose
Of the Government to supply by evil
denee the reason and motive for the
transactions.
This" he said. will be found in the
following items of the proof, which VIII
be laid before you:
That no sooner had Fall been en-
powered by law to deal with leasing the
naval reserve lands than he declared
that he proposed to take full control
and command Of the matter himself and
deal with it exactly as he saw fit.
THAT the policy was declared III let
terS exchanged between Fall and Secre-
tary DENLY. then Secretary of the Navy.
that no leasing should be done Of Tea
pot Dome naval reserve in Wyoming
Go to Fars HomN
THAT within two months S.rclaE
and his counsel Zevely, went 70 Three
Rivers. N Mex. where Fall was at home
on trip from Washington, and dis
cusSe6 with Fall in his home the cues
ton of the possibility Of getting lease
upon Teapot Dome
THAT Fall got back to Washington
ON the 9th of January, 1922, that he
made a trip TO New York on the 20 OF
February, 1922; that long and COM
plicated proposition was received by
T-.H ales in. an
Dome on February 3. 1922. containing
many matters which Sinclair could not
possibly have gotten except through
conference with Fall.
THAT in February. 1922, the drafting
of q lease was begun, most OF Which
drafting was done in the Office OF SIN
clair's counsel in Washington and not
In the Department of the Interior.
THAT Secretary Fall handled the ne
gotiations himself and did not allow his
assistants to participate therein.
Incorporates Company.
THAT on February 2S, 1922 Sinclair
caused the Mammoth Oil Co. to be m
corporated TO take the proposed lease.
THAT on Marcl. II. 1922. Sinclair
submitted q formal proposition fol q
lease and that ON April Z. 1922. the
lease was signed. was locked away in
Falls desk drawer and kept secret until
inauirers, including Congress. became
persistent in their desire to know what
had been done and the lease had to be
given out"
Roberts then spoke of the high value
Sinclair placed on the reserve and of his
buying up "valueleSs" placer claims SO
that he would be the only man able 70
surrender them TO the Government as
part Of the Teapot Dome lease require
ments In order TO put the deal over
with Fall. he said. Sinclair was willing
to pay 81 900 900 for the claims.
The Government attorney told the
Jury of secrecy which he said had
been thrown about the lease trans
actions. OF untrue statements" made by
Fall when other prospective lessees in
qGiTed into the status Of the reserve.
Asks Guilty Verdict.
When the Government shall have
proved TO you these matters, Roberts
continued. we shall ask you 10 find tnat
these two men did congpire to defrauc
the United States and did do acts and
things 10 bring TO fruiticn their agree
nleni and conspiracy and TO find them
guilty as charged in the indictment"
AS Roberts concluded, the defense
counsel conferred briefly, and Daniel
Thew Wright. speaking without pre-
pared argument. outlined the defense.
My adversary has peen able TO give
you so little information that We hope
TO give you facts that Will AID you in
reaching your decision" said Wright.
He outlined the mining laws and oil and
mining leases that we're IN force before
the Teapot Dome lease was negotiated
ard sought to show the placer claims in
the Teapot Dome reserve we're not
valueless. as Roberts had maintained.
In 1919. he said. the Pickett act pro-
viding fur executive withdrawal Of pub
lie lands from public entry was passed
By Congress. and the policy Of oil land
leasing was inaugurated. The Pickett
act. he said. reserved 70 persons loca-
fE0ns already proved upon land with
orawaI from public entry by executive
order.
In 1915. Wright said. a part Of this
Salt Greek field In Wyoming was desig-
mated as q naval reserve.
Wright said that Fail and Secretary
DENLY OF the Navy Department had
met On their way 10 a cabinet meeting
In 1921. and that DENLY then proposed
changing the Jurisdiction over the naval
oil reserves from the Navy 20 the Into
rior Department. The attorney quoted
DENLY as having said:
I'm going 20 ask the President 70
put you IN charge Of these oil lands"
This was put up 70 President Harding
that day, said Wright. with the result
that the President orally instructed
Pail 20 initiate q move for transfer
the reason given by D0heny for his
proposal at that time, said Wright, was