Evening star., 1928-04-21
NEW LEADS FOUND
IN SINCLAIR TRIAL
Senate Committee Probing
Teapot Dome Recalls Indiana
Standard Oil Official.
Ry The Associated Press.

| BY the Associated Press,
| The Senate Teapot Dome committee
| continues to uncover lew leads.
| 1t now believes that Robert w.
! Stewart, chairman of the board of
the Standard Oil Co, of Indiana. re-
ceived the missing fourth share in the
81. .08o 900 profits of the Continental
Trading Co. and 1t has summoned
Stewart TO appear Tuesday to find out
for sure whether its findings are cor
rect.
Chairman Nye of the investigating
committee, who made this announce
ment yesterday, also disclosed that VIII
H Hays, former chairman of the Re-
publican national committee, borrowed
approximately 100000 from Sinclair
in addition to receiving Si60000 in
Liberty bonds from the oil operator
for use in wiping out the Republican
deficit existing in 1928.
Satisfied With Hays Statement.
The committee is satisfied, however,
Nye said, with an explanation on this
point given Ii some time ago by Hays,
who said the money had been repaid.
Part of the loan was made up Of the
Continental Liberty bonds. Nye added.
What led the committee chairman
again to summon Stewart here was
deposit slip which he said had been
found in the oil officials personal ac-
count in the Continental and CONNER
ctaI National Bank OF Chicago showing
that on December Is, 1923, Stewart de-
posted Si3.90375. On the slip was
notation that the money was the resi-
due of coupons first liberty loan, de-
ducting two days" A similar deposit
was discovered in December Of 1922,
Nye said.
Regarded As Significant.
1T is significant" he explained, that
IL this deposit represented the semi
annual payment Of interest on bonds OF
the first Liberty loan issue. the amount
Of bonds was In excess OF $3.50, 600. This
represents one fourth share OF the prof
its OF $3.080.0o0 Of the Continental
Trading Co"
Stewart has denied before the Senate
committee that he profited by the Con-
tinental oil deal. although he refused TO
answer CUES tions when pressed concern
ing the purchase Of first Liberties repre-
senting the profits OF this now extinct
company, and as a result he was indict~
ed for contempt. His trial probably win
start in few weeks.
Nye sees In the committees new lead
the possible clearing OF the last inn
portant obstacle before the conclusion
OF its long inquiry lie already has
named Sinclair, Harry NJ. Blackmer OF
the Midwest Refining Co and James
r. ONeil OF the Prairie Gas e. OIL
Co. as those who shared the other
three-fourths Of the Continental profits.
Deposited Bonds in Canada.
Blackmer and O'Neil, missing wit
neSses In court oil actions, made hur-
rieG trips TO Canada and turned over
their bonds 10 be- held pending the out
come Of the litigation. OF Sinclair's
| share. 100000 has been traced To
Hays who distributed 1t, he testified,
In return for similar contributions 10
cover up the fact that such large
donation 10 the Republican campaign
| chest came from one man. Senator
| Borah OF Idaho is now trying 10 col
lect this sum from Republicans TO re-
pay Sinclair.
Another block OF Sinclalrs bonds.
amounting 10 more than 100000, has
| been identified by the Senate commit
| tee as part OF the total money he
turned over 10 Albert b. Fall. former
Secretary OF the Interior. for what
| Sinclair claims was one-third interest
| In Falls New Mexico ranch holdings,
! but what the Government charges was
/ IN return for Fali's fayoring the oil
| operator in granting the Teapot Dome
| lease.