Casper Daily Tribune Newspaper, March 13, 1924, Page 4

— ‘AGE FOUR INJUNCTION TIES UP TEAPOT; JOINT RECEIVERS ARE NAMED (Continued From Page One) visions of the contract heretofore executed between said defendant, Mammoth Of] company, and said defendant, Sinclair Crnde Of! Pur- chasing company, under which con- tract sald ofl has been heretofore fold and shall collect the sale price thereof and is hereby authorized to apply the proceeds recelved from the sale of said of! under said con- tract and from the sale of the natu- ral gas or casing head gas, if any, as may be hereafter authorized by order of this court, as follows: {a}—"So much thereof as may be necessary to pay the reasonable and op 0: { operating the said pe: including the wells there- on and equipment used in connec- tion therewith; (b)—"To deposit any balance to his credit as receiver of this court, to be held for the protection: of all parties to this cause, and subject to such further order as this court may make with respect thereto.” As relating to the injunction the order requested would decree: i—"That an injunction issue against the defendant, Mammoth Ol company, its servants, agents and employes, enjoining and re straining them and each of them until the further order of this court from doing any further drilling upon the premises described in said bill, and from operating the wells now drilled thereon or from inter- fering with the possession and con- trol of fhe receiver hereinafter appointed in this order.” Mr. Pomerene and Mr. Roberts leave Cheyenne tonight for California where they will instftute lar actions in the federal court uthern California for the can- ation of the lease to the Doheny CHEYENNE, Wyo., Mar. 18.—Charging frauds, con- spiracy’ and illegality, the government filed its suit here today to cancel the Teapot Dome lease and con- tracts. The government's special counsel petitioned the United States District court to do three specific things: 1—Issue a temporary injunction production. t m receiver to take charge of the properties, 3—Enter ao final decree cancelling the leases and contracts, returning the properties ‘to the government end enforcing an accounting. Former Secretary Fall was charged with making “false repre- wentations” to the late President Harding, which resulted in the transfer of the lands from the navy to the interior department. The government denies that there was any warrant of law for leasing the lands at all. The bill further alleges that Fall and Harry F. Sinclair, the latter acting for the Mammoth Of) com: pany, “did combine, conspire and confederate to defraud the United States.” The result of these alleged acts. the government's bill recites, was «0 leage the Teapot lands to the Mammoth Ofl company, at “an in- adequate, improper and fraudulent consideration." Former Secretary Denby in con- nection with the transaction is de- scribed in the government's bill as “having exercised no discretion" end his signature fs characterized “as merely a colorable attempt to evidence the compliance by him in its terms.” The Sinclair Crude Of] Purchasing company and the Sinclair Pipe Line company, operating storage facili- ties on Teapot Dome, were made parties to the suit as “trespassers’ to be ejected, their properties to be taken over by tho receiver, Prepared by former Senator Pom- erene and Owen J. Roberts, special counsel for the government, the bil! goes over much of the ground covered in the senate investigation. It recites that President Harding ‘was without authority to transfer the lands but did so on “false repre- sentations from Fall,” who desired to deal with the lands, “not in the interest of the United States, but to the advantage, profit and beneiit of the Mammoth Of] company, and in particular Harry F. Sinclai Fall, the bill charges, knew at the time that the whole transaction was illegal. Evidence of the alleged con spiracy, the government's bill charges, {s found in the fact that the agreement was made in secret by private negotiations without ad- vertize: it of competitive bidding” and that prospective bidders were discouraged from bidding and de- nied the opportunity by Fall. The Texas company, the Pioneer Oil company, Edward L. Doheny and Leo A. Stack, the bill says, were among those so excluded. At the same time, the government charges, “Fall steadfastly refused “to’ take the opinion of law officers of the government on tho legality of the propos: Fall, furthermore, the government charges, “‘secratly communicated” to Sinclair that"he would not make any leases until Sinclair produced quit claim deeds to any claims within the lands, “knowing well that said claims were worthless,” Then, the bill charges, Fall by “connivance” arranged for Sinclair to acquire such quit claims from the Pioneer Oil company “with in- tent to stifle competition.” At the same time, it 1s recited Fall agreed with John C. Shaffer, the newspaper publisher, to see that Sinclair set apart certain of the leased lands for “the benefit of the aid Shaffer.” “By the acts hereinbefore set forth, and other matters,” the gov ernment’s bill concludes, Albert B. Fall, and H by 5] fra ly covino: bine, confederate and const to defraud the United States of America and the result of their plléged acts was to get the Teapot Jands leased to theo Mammoth Ol) E} company “at an inadequate, im- proper and fraudulent considera- tion.” After the filing of the suit the government counsel and attorneys for Sinclair went into consultation with Judge Kenned yand at 10:25 o'clock court had not been convened for the preliminary hearing on the compliant. Attorneys who went fnto the con- ference in, Judge Kennedy's cham- bers inclu Special Government Counsel Pomerene and Roberts and Martin W. Littleton, E. H. Chand: ler, G. T. Stanford and Paul D. Cravath, representing the Sinclair inter Albert D, Walton, United States district attorney for Wyoming, !s named as representing the govern- ment in addition to Mr. Pomerene and Mr. Roberts in the complaint as fled. Mr. Sinclair an@ his attorneys ex- pect to leave for the east some time before tomorrow night, members of the party stated. AFFIDAVITS FILED ASK RECEIVERSHIP. CHEYENNE, March 13.—(By The Associated Press.}—Affidavits sign ed by Acting Secretary of the Navy Reosevelt and Secretary Work of the interior, setting forth that an injunction halting development work and a receivership are neces- sary to protect the interests of all parties concerned pending litigation over the Teapot Dome ol! lease were filed with the federal court here to- jay. The affidavits set forth that the daly preduetion af ofl fro: the Teapot Dome reserve is 3,975 bar- rels. The affidavits were filed by Atlee Pomerene and Owen J. Reb- erts, government counsel. in sup- port of the government's bill in equity seeking annulment of the lease and asking a temporary in- junction and receivership, HEARING LAUNCHED AFTER CONFERENCE. CHEYENNE, Wyo., March 13. — Judge T. Blake Kennedy opened the Preliminary hearing on the govern- ment bill in equity seeking annul- ment of the Teapot dome pil re. serve lense at 11:03 o'clock today after attorneys representing both sides had held an hour’s consulta- tion in the judge's office. Owen J. Roberts, opening the case for the government asked that Judge Kennedy issue an order granting an injunction restraining ‘the defendants from any further ‘@riling operations gn the Teapot Dome reserve. The order would also oppoint a re- ceiver to take charge of operations on Teapot Dome and direct him to continue operations only so far as he should deem ‘. Under the terms of.the order re- quested the seventeen crude oll storage tanks of the Sinclair Crude Of] Purchasing however and pipe lines and equip- ment of the Sinclair Pipe Line com- Pany would not be places under the | in which A. E. Watts, vice president Consolidated company, control of the receive it further orders. be Casper Wally Crivune ing the Sinclair interests said in answering Mr, Roberts’ request. “We suggest a joint of the Sinclair Olt cor- would represent the Sin- poration “We are not here consenting ~or | clair interests in addition to the gov- objecting to the appointment of a recetver,” J. W. Lacey, represent- ernment representative,” cey sald. Mr, La- SENGATIONAL EVIDENCE BROUGHT QUT IN DAUGHERTY PROBE TODAY Stinson did not know. He told her nothing. When she saw Smith with the $75,000 he had just come from Washington, the witness added. The private papers, coming here to her from Ohio, Miss Stinson said, had not arrived, but contained re- ference to money Smith received. Smith traveled for many months on a department of justice railway ticket, she stated, although he wag not on the government payroll. Smith carried the 75 one-thousand dollar bills in a belt around his waist the witness sald. “Did you ask him, about them?’* “No, that was after I quit wanting to know things.” “Where had Smith come from when he brought the money with him?" “From Washington.” “He didn't bring it in a black satchel?” asked Senator Ashurst: “No, sir.” She was unable to fix the date of his arrival. Tl with appendicits, she said, Smith was depressed because tho at- torney general was not going to at- tend his operation. Miss Stinson asked Draper Daugh- erty, son of the attorney general, to have his father attend ‘The attorney general finally went to Columbus and Smith was so pleased “he cried like a baby.” Senator Wheeler then turned to questions about ‘a $33,000 deal,” but then decided to “skip it for the moment.” Senator Wheeler asked if she knew of any deals “regarding whiskey,” Miss Stinson replied that she knew of no specific deals. Pres- sed harder, Miss Stinson sald she had heard “just generally” of whiskey deals and that “they had plenty of whiskey at their disposal.” Attorney General Daugherty had been with Smith, she said, when the latter arrived at Washington Court House, Ohio, with suitcases contain- ing whiskey. Smith had given it to the attorney generally, herself and other friends she said. When Attorney General Daugher- ty first took office, ,Miss Stinson sald, Smith told her generally how whiskey was gotten out of ware- houses on permits. “They got afraid of it,” she added, “he told me 50.” Miss Stinson eald she knew of Smith having telegraphed Thomas B, Felder, a lawyer who had been associated with Mr. Daugherty in the proceedings for getting a pardon for Charles W. Morse, the banker and ship builder. She also sent telegrams for him to McLean, “Mr. King” and others. She sald King’s name was John T. King, a former Republican na- tional committeeman from Con- necticut. Smith had discussed “deals” with King which were said by Smith to be important, She did not know details. After mentionnig the alleged “deal” betwegn Smith and John T. King, the committee went into an executive session with a recess until 10 o'clock tomorrow an- nounced. Miss Stinson still apparently faced much more examination. WASHINGTON, March 13.—Miss Roxie Stinson, divorced wife of Harry M. Daugherty's confident, Jesse Smith, who committed suicide A year ago, again was the star wit- ness today before the Daugherty investigation committee. Senators not only sought to draw out details of her story of yesterday in which she in- cluded some astonishing insinuations about Smith and Daugherty, but made an effort also to establish new lines of inquiry involving liquor cases and other matters than were Pending in the justice department. As a result of her testimony Sena- tor Wheeler of Montana, the com- mittee prosecutor, announced he would call Edward. B. McLean, pub- lisher of the Washington Post, and Mal Daugherty of Ohio, the attorney general's brother. Among other things committee- men want to know whether there was any attempt by friends of the attorney general, as suggested in information reaching the committee, to avert Miss Stinson’s appearance on the witness stand. Before the committee met today Attorney General Daugherty {ssued another statement declaring the in- vestigation “could be fully and fi- nally disposed of in a week or ten days if only pertinent inquiries" were made. The attorney general also wrote Chairman Brookhart protesting against issuance of committee sub- poenaes for Gaston B, Means and Thomas B. Felder, on the ground that they would recetve immunity under indictments pending against them at New York, The letter was laid before the committee, but some members were d'sposed to insist upon hearing Means and Felder, They are under) Indictment in connection with the Glass Casket. stock marketing case tion or expansion. Mahogany. OPEN EVENINGS ’TILL 9 O'CLOCK Liberal Terms May Be Arranged On Any One of the Many Bargains on Our Floor The MUSIC SHOPPE, tne. “The House of the Steinway” 238 East Second {i The Modello Player Piano The most sensitive action made is installed in the Modello Player, a Baldwin made piano with a ten-year guarantee and the liberal service of our Piano expert added by the Music Shoppe, Inc., makes this player the most attractive buy of any Player Piano on the market. The counter-balanced action makeg it as easy to play by hand as any ordinary Piano, and you have the TWO-IN-ONE feature, This player contains a full cupper wound bass and silvered treble strings; the wrest plank is of hard rock maple, allowing of no contrac- Beautiful case design in rich ENGLISH Brown . No effort required on your part to get music from this wonderful deep, rich-toned Player Piano. Come in today—this evening—or tomorrow, and see our wonderful display of Grands, Reproducing Grands, Uprights and Players. We have a special price on every piano for this week. WE will be pleased to show you around. Street Phone 1745 Begins to Look Like » Day Nursery and their testimony is desired in connection with transactions of Jesse Smith. The attorney general's statement follows: “I am adhering to my policy of saying nothing for publication for the present regarding the alleged in- vestigation of the official action of he attorney general and the de- partment of justice. I have said nothing for publication upon’ that subject since leaving for Chicago m February 27. “My attorneys are giving their at- tention to the matter to the extent that they are permitted to participate n the alleged hearing. “If pertinent inquiries regarding the department of justice and the official acts of the attorney general only were made and competent test!- mony taken, the whole matter would be fully and finally disposed of in a. bear cloth and. Twill. tailored models. Sale Price -_--__-._ PHONE 1740 Kassis Dr week or ten days at the farthest. Anything regarding the Investiga- tion must be given out by my at- torneys, as I am occupied constant- ly with my duties here.” Other information sought from Miss Stinson today related to $65,- 000 in liberty bonds which Smith was said to have had here in the safety deposit box. Committee members said they were prepared to produce a witness fg to the source /of the stock. TESTIMONY HOLDS FRESH SENSATIONS WASHINGTON, March 13.—The Daugherty investigation, for the mo- ment at least, has éclipsed the oil scandal in the way of sensational testimony, with Roxie Stinson of Columbus, Ohio, still on the stand today after setting a dimy pace yesterday at the opening of the spe- cial senate committee's Inquiry into the attorney general's administra- tion. Miss Stinson, who was the divorced wife of Jesse Smith of Washington Court House, Ohio, confidante “bumper and fvlend” of Daugherty, was brought here by Senator Wheel- er, Democrat, Montana. Sobbing whenever her narrative brought before her the memory of her former husband's suicide a year ago in Daugherty’s apartment .here she gave the committee a breath-tak- Bhe 5E 180,000 in profits if exhibition of motion pictures of the Carpentier. Dempsey fight could be arranged, and on another occasion, she said, her former husband entrusted to her for sale 25 shares of White Motors stocks, telling her “they” had obtained {t without cost. Smith, she added, also had come into pos. session of a number of shares of of Mr. Daugherty’s personal coun. sel, marked the opening séssion. An attempt by Mr. Howland to Intervago in the examination of Miss Stinso brought Senatér Wheeler to the end of the committee table with a decla. ration that he did not intend to be “bulldozed,” and= an effort to pre- sent a prepared statement on behalf of the attorney general also brought a sharp exchange. The committes voted 3 to 2, to reject requests of the Daugherty counsel to have the statement received befote finally ac: cepting it into the day's record. 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