Evening star., 1928-02-08

Continued from First PageD
! the committee. Rockefeller wrote Sena'
| tor Walsh this letter:
! Col. Stewart's testimony before the
| Senate committee, as reported III TO-
! DAYS newspapers. covered all the III.
| formation which he had given me and
! confirmed his statement TO me
| that he did not personally proht by the
| transa ctions in question.
Il have not felt that Col. Stewart
! failed in his duty to his stockholders
but l am sorry that he did not answer
all your questions for the situation calls
| for the fullest disclosure OF the iacts
You are. of course. to use our cor
respondence in any way that VIII serve
! the public interest
On the day before receiving Rocke-
| feller's letter Senator Walsh wrote him
| that the press will advise you tomor-
row morning OF how well your admoni-
ton to Mr.. Stewart was observed by
that gentleman"
witnesses Tell Nothing.
TODAY the committee called on Earl
w Sinclair, brother of Harry F. Sim
clair; Clark H. Kountz. vice president
of the Prairie Pipe Line Co, and G: T.
Crawley. vice president Of the Sinclair
Consolidated Co.. for information about
the bonds. but without material re-
suit.
KountZ went into the story OF O'Neils
return OF 100000 of the bonds to the
Prairie Oil 81 Gas Co.. OF which he
vas president. and told the committee
the securities were in the hands OF the
oil mans son at one time
To the vital question: What. II
anything. do you know about the
bonds purchased by the Continental"
asked by Senator Walsh. Democrat,
Montana, the committee prosecutor.
there was no positive answer.
These bonds. esrnered by the Con-
tinental after 1t had engineered a deal
to buy American oil for s1.50 a barrel
and sell it back to American companies
for sl15, are alleged by the Govern
ment to have figured in the lease OF
Teapot Dome to Harry r. Sinclair, but
the committee has so far failed TO un-
cover what disposition was made OF
the entire lot is facing contempt
charges for refusing to testify on the
subject.
O'Ncii Made Restrictions.
Kourtz. the first witness today, testi-
fed that James z. O'Neil summoned him
time the missing witness made restitu-
ton to the Prairie Oil IL Gas Co. OF
the 100000 in proflta he had made
out OF the Continental Trading Co
transactions In buying oil from the late
A, z. Humphreys OF Denver. and selling
10 to the Prairie OH Co. and the Sin.
clair Crude Oil Purchasing Co.
The witness testified that he was pri-
vate secretary 10 O'Neil for a number
OF years, and 1t was on this account
that the oil man gave him the order
for the bonds, which then were In the
possession OF O'Neils son. Wayne ONeil
Where did you actually get the
bonds?" inquired Senator Walsh.
Out at his home at Garden City,
Long Island" kountz replied.
Where did he get the bondss"
out OF some bank there"
Kountz explained that O'Eeil. In tell
ing w. s. Fitzpatrick. chairman OF the
wanted that company to have the
bonds, had requested that none Of the
coupons be cashed as long ~ Harry r.
Sinclair was In difiiculties with the
Federal Government as result OF the
Teapot Dome lease.
Suggested by O'NeiI.
Eari w. Sinclair, brother of Harry r.
Sinclair and president Of the Sinclair
ConAolidated Oil Co, the parent Sir-
clair organization. told the committee
that the sale OF the Continental con-
tract 70 the Prairie OIL and the Sim
clair Crude for $l00 900 had f,rst been
suggested TO him by O'Neil.
Under the Continental contract. mace
on the same day. the Continental
| bought the oil for 81 so barrel. ],
vas sold hack 10 companies In which
Robert w. Stewart Of the standard Oh
Co Of Indiana, Harry r. Sinclair and
others were interested for si.7S. The
Crude bought The contract after deliv-
cry Of part of the oil.
Il told Mr.. Crsvley vice president
of the Sinclair Consolidated, 10 tell II
l.. Phillips. president Of The Sinclair
Crude. 70 come TN 10 New York and
get In touch With Mr.. OEIer IL S Osier
of Toronto, president OF the C0nti-
nentaD about the matter"
Phillips negotiated the sale with
Os!eY. Al thst time the contract siiil
had u potential value Of $4,000 600
Sinclair said he did not inquire ~ Ia
how much oil had been delivered under
tHe C1ftlYAfl.
Knows Nothing Of Bonds.
Whist, II anything do you know
about tbs bonds purchased by The Con-
tiuFutai7" aAktd Esnatpr Walsh.
".olhing
Did your company get any7"
no alT "
Have you any Liberty bonds ia The
akhrts ~ your COmpanyf
"Yes. sif. about 5000 900"
do yoi know 81 any individual Of
| ficer 1f your company who received any
bmids1" inquired Chairman kye.
| Il Gn not. certainly none of the bonds
The company has now ere Continental
honds
| e. " CTswley, vice president of the
: .lncjslf Consolidated testified Lnai ils
hsd Told Phillips ~ get In touch win
! representatives ~ ihr ContlnentBi JrAf-
/ Ing Ep about the purchase of The oil
| sale contract
| But Mr Phillips hIld az hs did not
.ef any III 'Hs Officers III The CONT
nenisi" senator Walsh ssld
| Il do noi know what MI Phillips tea,
itfisc ~. ts~nstGf bii thst Is what hap,
| I,srwd.' cTswisy replied.
After HssriuR ntfsf three Witnesses
The committee adjourned subject u, tt,s
csji III the chairman Esnahnf Hys ssjd
there would be some executive meetings
during the week, but inst there prob
ably would be Ho more public sesaiGns
! IBtil next week