Show STAGE IS SET FOR NEW ACT IN NAVY OIL LEGAL DRAMA Sinclair and Fall Before Court On Grave Graye Charges CASE REVIEWED REV IE V ED Looks Like Uncle Sam Will Make All AU Pay l ay Dearly BT BY WILLIAM HARD liARD Special S lal Correspondent Corr of The Stand Stand- ard Copyright 1927 Consolidated Press Association WASHINGTON Oct 15 harry Harry F. F Sinclair and Albert B. B Fall will wUl go 10 to their trial next Monday here In the District of Columbia on charges of conspiracy against the government go of the hc United States In the matter of the Teapot Dome naval oil reserve with Ith four more court proceedings still looming ahead before the great na al oil legal drama Is ls concluded Washington today was much en engaged en- en engaged in summing up the results of that hat drama to date and In forecasting the outcome of its remaining scenes The navy department finds in the first place that the total amount of oil taken out of the Ute naval reserve resene number one in California and out of the Teapot Dome naval reserve resene In under the Doheny and Sin Sin- Sinclair Sinclair Sinclair clair leases and under the subsequent receivership proceedings amounts to less than barrels Since the total amount of recoverable oil oilIn oilin In the two reserves reser is probably along about tu bf it Is mani mani- manifest fest feat that the navy has lost only a aery very ery small percentage of its reserve reset oil supplies and that in this respect the of the government go toward the consequences of the Doheny and Sinclair leases and to toward to- to toward toward ward stopping the draining of the reserves have ha been highly successful PUNISHMENT PU COMPLETE COl It is noted in the second place that the Ute financial punishment inflicted upon Mr Dohe ly and about to be in inflicted In- In Inflicted Inflicted upon Mr Hr Sinclair has to be regarded as thoroughly complete While Mr Sinclair Is being tried Washington there will be hanging over him one of ot four further court proceedings above mentioned This take place In the United States district court In Wyoming In obedi obedi- obedience obedience ence to a a. mandate from the United States supreme court and it ft will cause Mr Sinclair to say goodbye to several million dollars The district court under the man man- mandate mandate date will be obliged to order Mr Sin Sin- Sinclair Sinclair clair elate to pay over to the United States treasury the value of the oil all which he be withdrew from Teapot Dome That value Is calculated by the navy de department de- de department department to be In the neighborhood of Mr Sinclair will also be ordered to relinquish to the government all the works which he has constructed In Teapot Dome amounting in value to perhaps He will wili also be ordered to surrender to the navy de department do- do department without compensation the storage tanks which under his lease and contract he has built In the Portsmouth navy yard jard at a a cost coat of mote more than GET EVERY CENT It Is believed that not one cent which by any process of reasoning Continued on Page Two STAGE IS SET FOR NEW ACT Continued from race Page One could be demanded by the govern govern- government ment most from Mr Sinclair will fall lall to tobe tobe tobe be wrung from Irom him within the next few months under the supreme court mandate A similar statement can be made regarding Mr Doheny together with wills the additional statement that Mr Do Do- Doheny Doheny heny hens faces further financial punish punish- punishment punishment punishment ment In a case clUe which Is stilt still to be tried and which has quite generally escaped public notice In the famous case Involving his general lease In na naval na al oil reserve No 1 In California Mr Doheny has al already al- al already already ready paid over to the United States treasury more snore than for lor oil taken out He lie has surrendered surrendered surrendered ered to the government In that reserve various roads and wells and other works which It cost him more than to construct He lie has also re relinquished rc- rc without compensation to the government naval authorities all eli elithe the tanks which he constructed for storage of ot oil In the Hawaiian Islands together with some one an one half million barrels of or oil deposited In them representing In total an out out- outlay outlay lay by him of some END E D NOT YET Yet this Is not the end of his finan finan- financial financial cial dat retribution for his dealings with Secretary of or the Interior Albert B B. Fall Alice pomerene and Owen D. D Rob Rob- Roberts Roberts erts government attorneys propose to take him Into court now In a total total- totally totally totally ly new and different case Involving three other naval na VIIi oil reserve leases granted to him In California by Mr Fall Fail In circumstances which cause the government to deny their validity One of these circumstances is that Mr Fall granted the leases In ques ques- question question tion Lion to Mr Doheny without getting any competitive bids from Irom any other oil men On the tracts which these leases cover Mr Doheny has haS' had some 18 wells Through these wells he has withdrawn a a. aery very ery large amount of oil If I the go gO wins a victory In Inthe Inthe Inthe the new court proceedings against him he will have to refund to the government go the whole hole value alue of that whole amount From the financial standpoint ac accordingly so- so cordingly as well as from Irom the stand stand- standpoint standpoint point fl tion of of naval the 1 final oil 93 98 se effective per cent t conserva conservation of which fJ h Is now still In the ground Mr Pom- Pom Pomerene Pomerene erene and Mr Roberts are able to show perfect results There remain the criminal as con con- contrasted treated with the conservational and financial aspects of the matter The trial which Mr Sinclair and Mr Fall will approach next Monday In the District of Columbia Is the second of ot four criminal trials instituted Instituted Instituted by Mr Me Pomerene and Mr Rob Rob- erts MORE lORE TRIALS TO COME COMB The first was against Mr Doheny and Mr Fall on a charge of acy It resulted In an rn acquittal The third and the fourth trials of or orthis I this variety are yet set yetto to come One is against Mr Fall for lor bribery The Theother Theother Theother other Is against Mr Doheny and Is also for lor bribery With then them the pro pro- protracted protracted traded and laborious duties of Mr Pomerene and Mr Roberts as ns gov gov- government government government attorneys will presumably pr I come to tI an end cad Next Mondays Monday's trial will according according- accordingly ly Iy represent the governments government's last ap apparent ap- ap apparent apparent parent chance to convict Mr Sinclair on charges of a criminal color and to punish him in his s person It will eu m. m rM U have another chance n na against a Mr Fall Falland I and another chance against Mr l Do- Do DoI I Doh Doheny I h heny iy ny but not on present prospects another one against Mr Sinclair The incidental case cose again Mr Sin Sin- Sinclair Sinclair clair for lor contempt In Irs refusIng to tI an answer an- an answer I questions put to him by the sen sen- senate senate ate Investigating committee is still cUll In Inthe Inthe Inthe the court of the District o. o 0 o Columbia but would at the most send Mr Sin Sin- Sinclair Sinclair Sinclair I clair to Jail for lor stubbornness and ob obduracy ob- ob obduracy and not specifically for lor crim I The government accordingly regards next Mondays Monday's trial as being of crucial importance and It also be believes be- be believes that it may assay have consequences I be-I which could not be expected from Irom the similar trial in which Mr Doheny and Mr Fall were ere acquitted Mr Sin Sin- Sinclair Sinclair clair Is to charged not only with at lit- attempting at- at attempting tempting to defraud the government but also with taking part on Mr Falls Fall's behalf in raising funds lunds by sell sell- selling sellIng ing log oil to certain oil companies under contracts by which those companies were ere to the extent of some It Is hoped by the government that if 11 these charges In Involving In- In invoicing voicing three other oil men besides Mr Sinclair are substantiated there will be at least some action taken by the oil industry Itself for lor putting its Itson own o hOUts houes In order |