The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-02-02
OIL PROBERS
ARE DEFIED
BY STEWART
Chief of Indiana Standard
Refuses to Tell of
Secret Profits.
FACES CONTEMPT CASE
Given Until Tomorrow by
Senator Walsh to Tell
~ All of Story.
~ United Press

~ united Press
WASHINGTON, Feb. 2.-Robert
W. Stewart, chairman of the Indi-
ana Standard Oil Company board
refused to tell the Senate TEAPOT
Dome committee today what he
knew about the mysterious dispo-
s1tion Of $3,000,000 profits of the
Continental Trading Company.
I never got a dollar out Of the
deal personally" Stewart said. 1T
never gave any of the bonds to any
political party, any Government Of
f1cial or any official Of any munich
pality.
Further than that must decline
an answer"
Senator Walsh of Montana an
i1ounced the committee would give
Stewart another chance to answer
Friday and that if he persisted, con-
tempt proceedings would be begun
against him. He would either be
taken into custody or cited to the
district attorney for court contempt
action, Walsh indicated.
Guaranteed Contract
The Continental firm made its
money by buying millions of barrels
OF oil at $3.50 a barrel and with
out handling the oil sold it i'm
mediately at SITS barrel. Stewart
testified he had bought some of this
oil from Continental, but only be-
cause he thought it was cheap. He
said he was not concerned with
what the Continental made out of
the deal.
Stewart admitted he guaranteed
the contract whereby the Con-
tinental made the 100000 profits
the committee is tracing, but said
he had to do it to get the oil.
ut was just like guaranteeing a
note after the note is paid"
Stewart said
For that reason he joined with
Harry Sinclair, he said to con-
Summate the deal
From these 100000 profits. the
committee already has learned that
Sinclair sent $233,000 to former Sec
retary of Interior Fall, after Fall
had leased Teapot Dome to Sin
clair.
Went to See Humphries
Stewart said he heard A. E.
Humphries of the Mexia field, after
Pure Oil deal, was willing to sell
the other half of his output.
"The board Of my company asked
me to go to New York to see
HumphrieS.
Humphreys said he was going to
meet some gentlemen in Blackmer'
hotel room and asked me to be
present.
Il went and found Humphreys,
his son, Beaman Dawes, Sinclair
and others. was told the Sinclair
Crude Oil Purchasing Company was
going to get the Oil and that would
have to get it through that source.
He said I would have to pay SITS
per barrel for it. I DIDN'T know
what they were going to make out of
IL. L didn't care because knew the
market price of oil was 81. That oil
was cheap at SITS and we wanted
H."
Stewart Shows Temper
Stewart showed traces of temper;
ordered news photographer not to
take his picture on the stand; OBJ
viously was disturbed by the prox-
unity Of newspaper men to the wit
ness chair; and resisted Walsh
whenever they differed on interpre-
tations of his testimony.
O. A contract worth $5,000,00O was
bought by oil men in the Con-
tinental Trading Company deal for
100000, E. G. Seubert, president Of
che Standard Oil Company of In
diana, told the committee today. He
preceded Stewart on the stand.
After the Continental had made
$3,0o0,000 profits from the contract
tInder which it was to buy 50,O0O,OOO
barrels of MeXia oil, it sold the con-
ytract to the Sinclair Crude Oil
! Purchasing Company and the Prai-
rie Oil and Gas Company, Seubert
said.
Senator Bratton CDem), New
Mexico, brought out that by re-
purchase of the Continental con-
tract the two purchasing companies
were able to buy their own oil for
25 cents barrel, absorbing the
profit which the Continental had
been making for them from them.