Evening star., 1928-04-19
CASE OF SINCLAIR
WILL REACH JURY
EARLY SATURDAY
Continued from First Page }

with the defendant. asking Dunn this
question:
Did you ever write any Dooley stories
about oil?"
Not ct" replied Dunn, and the
courtroom roared. drawing from Justice
Bailey n reprimand against such fu-
ture conduct.
from Senator Elkins. Roberts drew
the fact that he had been interested in
Sinclair's Mammoth Oil Co. which got
the lease on Teapot Dome.
Then followed the story. as the de-
fense views IL. OF the S25,000 advance
by zevely to Fall in Liberty bonds and
Falls trip TO Russia as counsel for the
Sinclair interests
Through DR. A. G. leatch, president
of he Sinclair Exploration Co. Daniel
I W Wright Of Sinclair counsel estab-
lished the fact that Fall was employed
in May. 1923. to accompany party to
Russia TO negotiate for concessions on
petroleum lane
Turns TO Bond Transaction.
Turning sharply TO the SIS 0o0 bond
transaction, Wright read 10 the jury por-
tions OF ZeVelys testimony before the
Senate committee. In effect this was
that he. Zevely. asked Fall 10 go on the
expedition Fall said he would follow
shortly after the party departed and he
needed Sonlr money. as he had one or
two things to do with respect TO the
acquisition OF some small ranch prop
critics and further wanted time 10 get
the approval of the administration even
though he had left the cabinet at that
time. He wanted $4,000 and Zevely
told Sinclair. who said that II Mr.. Fall
l. 49, Eo.-
The amount in Liberty bonds was or
dered sent in a package To bank In
Ell PaSo in June. 1928. with directions
that It be deposited to Falls account,
Zevely told the Senate committee this
money was a loan and that he received
Falls note for it on the return from
Russia, Al the time Zevcly approached
Fall no arrangement was made as 10
compensation and nothing vas saic
about IT, When Zeyely ordered the
bonds sent 10 Ell Paso he said he did not
tell the person who actually put them in
the mails who they were for
Roberts then read portion OF the
testimony which he regarded as bearing
on the Governments contention that
the SIS 600 was not loan. This read
Ing showed that zevely was asked hy
Senator Walsh why the arrangement
had not been made by correspondence
and ZeYeiys reply was Il suppose We
did not want 10 write about H."
SAYS lie Was Trustee.
Zeveiy said Fall got $4,000 for ex-
penses. when Walsh said that Fall
told the committee that Is all he got,
Levely emphasized that the S2S000 was
a loan Zeyely did not know Why Fail
did not forward his note 10 Zevely I'M
mediately upon receipt OF the bonds.
explaining that II was not until their
return from Europe that the note was
given.
Walsh could not understand why the
note should be made payable 10 Levely
when ii was Sinclair's money and the
latter replied he was trustee on this
particular transaction.
George 7. Stanford. general counsel
OF the Sinclair Consolidated OIL Cor
poration. who went abroad In 1923 on
the Russian mission. stated that Fall
joined the party In London a week
later and that the former cabinet offi-
Ger represented the expedition In five
weeks period of negotiation with the
Russian secretary OF state at Moscow
for concessions III the oil fields. When
they left Moscow, about six weeks after
their arrival. the matter was still open
and 1t was not finally disposed Of until
July. 1925.
Another chapter OF the story was
contributed by Henry A. Wise, New
York attorney and counsel for FaIl In
1924 who testified he. at Falls request
In 1925. presented Falls bill against
two Sinclair companies for services rem
dered on the Russian trip.
The bills were against the Sinclair
Exploration Co. and the International
Barnsdall Corporation. aggregating $25,-
900 Wise said he was told by Fall 10
adjust the note he had given Zevely.
and Wise collected checks from the
two companies for total OF SIS 600
In turn he gave these checks To 2eveiy.
who returned Falls note. wiping out
the S2S. 900 bond loan.
Falls note was dated May -. 1928.
and was payable 10 Levely IL months
from date at Washington The in
dorsement on the back read. Paid.
November %. 1928. J, w. Zevely."
Wise said while he Was negotiating
for the claim ON behalf Of Fall he told
Stanford. with whom he dealt that
Fall had expected 10 receive very
substantial fraction OF the proposition
they negotiated for In Russia had II
been successful Wise added that he
felt the obligation Fall had should be
wiped ont and that $25,000 was an
extremely modest fee for man who
had been member of the foreign re-
lalions committee Of the Senate and
member OF the cabinet"