Douglas daily dispatch., 1928-02-03

se"I want to add it seems to me
that in view of the pending trial Of
Sinclair and the fact that I am sum-
ntoned as a witness in that case and
the issues in that case are the same
Issues here, that when this story goes
| in it should go before the judge and
jury"
Senator Walsh Immediately inter-
posed a different view.
1.-The senate of the United States
has taken an opposite view," he said.
"The two cases may be the same
but the senate does not admit that
! it estopped from inquiring into the
facts.
ct is the opinion of the committee
that the fact that the same matters
are pending in court does not fur
nish an excuse for your refusal to
answer pertinent questions of this
committee"
Then Senator Bratton, of New Mex
leo, asked Stewart:
Colonel, why are you so SolicitouS
about the government and defendants
in the court case and why are you
so anxious to advance your own opin-
ion in this matter?"
Because I am citizen of the
United States and believe in fair
and impartial trial and feel that this
case should go before judge and
jury. doubt if the senate has the
right to go into this case as judge
and jury
Stewart then was excused until 10
a. M, tomorrow, when the questions,
perhaps framed slightly differently,
will be put to him again. If he re-
fuses to answer the committee will
decide whether to recommend his inn
mediate arrest and imprisonment for
contempt or certify his case to the
District of Columbia supreme court as
was done when Sinclair refused to
answer questions in March, 1924. AS
result, Sinclair was convicted OF
contempt and sentenced to serve
three months in jail.
Stewart, foregoing a business trip
to Mexico from Cuba so as to teSti-
fv. had been present in the COM
mittee room for two days watching
walsh and other committeeman grill
officers of his and other companies
about accepting contracts which Ste
Wart and Sinclair made on benaH OF
Sinclair Crude Oil Purchasing COM
+, pany and out of which Continental
made $3,OOO,OOO in profits.
It soon became evident that ne
did not propose to submit himself TO
such a gruelling without fighting BACK
and once he started to make
threat to Walsh if the senator talked
! to him as he had to E. G.. Seubert,
president of the Indiana Standard.
i The Montana senator carried Ste
wart over the preliminary negotiations
he had with the late A. E. Hum
phreys of Denver, for the purchase OF
the oil from the Mexia fields In Texas
and then led up to the New York
City conference where the Continental
transaction took place. On the way
the witness and prosecutor had thelr
battles. Some times Stewart was al
most benign with his expt eSslons OF
sWhy, bless your heart" but In al
most the next breath he would bark
at the senator telling him he WASN'T
interested in what Seems to be
or advising him that the commlttee
wasn't interested.
When he came to recount WnaC
hanpened in the Vanderbilt hotel IN
New York. Stewart sat erect, race
flushed. ewes flashing and his open
fingers hammering the end OF the
table in emphasis OF his words. his
story was that when he got to New
York city with the lntentlon q
trying to buy Humphreys OIL, ne
was told by that operator tnat tne
Standard OF Indiana could not nave
it: that it had been negotiated 1or
by Henry M. Black1ner, chairman OF
the board of Midwest, an INDIANA
Standard subsidiary, and other people
stewart went to Blackn&rs room
at the Vanderbilt and WIS told py
Blackuner that if the Standard wanted
the oil it would have to pay SLID
barrel for it.. Stewart said he was
willing to pay that price since IL
was 25 cents below the current Market
price. The contracts were drawn and
Stewart and Sinclair guaranteed per-
Torrance of the contract by Con-
tinental.
"Of course knew somebody was
making a profit OF 25 cents barrel,
stewart almost shouted. But l
wanted that oil and L knew that l
could not get it at a lower prlce
than $1.75.
1--WE wanted that Oil and was
! willing that half go to the Prairie
OH and Gas company il one hall
went to the Sinclair Crude I made
q contract. I took copies OF 1T to
the board OF directors OF my COM
pany and told them it was perfectly
apparent somebody was making 20
cents a barrel. / told them that II
} that was material not to approve
the contract.
4 "The stockholders OF our company
made lot OF money out OF tnat
proposition. 1t turned out to be
profitable.
Sinclair and guaranteed this con-
tract. to show our faith in this
matter. It was like guaranteeing a
note after it was paid as it provldeo
that oil be in the tanks before any
payment was made"
4 Stewart then told the committee
, he would 'be frank" and say that
for years he had known H. S. Osler
president of the Continental, but
conceded that he knew nothing about
that company.