Show Showdown On Teapot Dome Oil Scandal Due Dae Soon H HH w HH H Fall and Sinclair Go On Trial as Conspirators October I Seventeenth the tM new high price level le this week ti-s ti t s stock mai mu was responding toan to toon on an improvement In business The sta sta- statistics statistics statistics of tile the ron and steel trade were unsatisfactory both boUl as to te fc progress made In production between the end of or September and the first of and in the tho ability to hold prices at recently established minimum levels Aside from a few large railroad or- or orand orI ore e I and some for building material the demand has hils been disappointing The output of or automobiles last month was 13 1325 1312 4 per cent under that of Aug Aug- August August August but approximately the same as asa asa asa a year ago It Is anticipated that October will witness a 1 more than normal slowing down dOl In the sales of or cars as ns the nubile holds ore oft to wait walt for new models and possibly lower prices Employment Empl In Detroit this tills week was 15 IS per cent less les than a 11 year ago represented by a reduction redu on from D to There Is progressive red rc sn m from one season to another In the amount of bulling activity In the first three months of the year ear the total to l was about less than In 1926 in the second r r It was smaller and In Use Uie three months ending September 30 low lo I by 17 of de decrease de- de decrease decrease with l the percentage crease in this quarter compared with less than 10 per pcr cent for the nine months The situation Is due un un- undoubtedly undoubtedly to some extent to the dI 11 culty many real estate mortgage houses have had In disposing of or their bonds bands to the public following the scandals of or last year jear This week final adjustments have been made to hold hold- holders holders holders ers of ot real estate mortgages that were publicly sold by b firms now In bank ban In these the boa bon Ider lder re received re- re receIved received from 40 r cent on scattered Florida mortgages to 50 SO and 60 per percent percent percent cent on mortgages elsewhere In the south and southwest and as high as 97 91 per pcr cent where the property was 1 as located In hr stabilized Inflation In stock prices as well ell as the transfer of or securities from those who can d to own 11 them to others who ho carry them on mar mar- margin margin margin gin has been reflected In hr the expansion expansion expansion sion in brokers' brokers loans as ns well as Inthe in inthe Inthe the volume of or bank exchanges In InNe New Ne York The TIle statement tat of or the New NewYork NewYork NewYork York stock exchange as of or September 30 cave gave the c c of street loans as close to Tills This represents represents represents an Increase ot or in inthe Inthe inthe the past 12 months From September 30 1926 to the end ot or January 1927 1921 there was a contraction In loans dur dur- during durIng during ing a period of moderate stock market reaction The loan expansion therefore there there- therefore therefore fore has been greater creater since January than it was over the 12 13 months' months per per- iod Within this calendar year yar the increase in the market value of active e shares is estimated at which would demand a large loan expansion During September brokers' brokers loan loans increased Bank clearings rose Yose nearly 25 per cent over September 1926 as a 1 result mainly of or excited speculative markets for outside of New York clearings were only three per pcr cent over a year ago MONEY IO tr TREND TRE HIGHER Present holders of 01 margined stocks are very ery sensitive to recurrent Indica Indica- Indications Indications of higher her money rates as the theone theone theone one one remaining bullish factor is that of or abundant supplies of or capital at averaging averages 1 I 1 per tent lent or more below those of or last October This Ibis week the renewal rate for money suddenly sud sud- suddenly suddenly denly advance ad when it was expected to decline Bank Dank acceptances at et the end of or the week weck were reported IVi 1 higher than during durin August and Sep Sep- The bank of or Gem G any raised Its discount rate from 6 G to 7 per cent Higher rates v v U 1 I follow tollow In Austria It may be necessary to advance the Bank of ot England rate again as the reserve ratio of or this institution this week was lower than It had been ina In III Ina a long while hile 1 It Is not altogether certain that the federal reserve board will continue the present rediscount rate at 3 4 per cent certainly not it if it sincerely desires to check a speculative laUve laUe situation which it partially cn- cn ci ct aged and which Is rapidly get get- getting getting getting ting out of or control A phase of the investment situa stun situation situation tion lion this week that has a bearing on the sock stock arket Is the advance in nearly all classes of or domestic bonds and In a few foreign fo Un Un- Undoubtedly Undoubtedly Us ts represents a a. transfer transferor of or funds by Individuals and from speculative to investment securities This substitution has had hada a pronouns pronoun effect on the latter forcing them to the highest prices witnessed d by this generation During the past three years ears the client of ot the investment banker has demanded demand d dand and secured bonds giving a yield of or between 5 52 and 6 G per cent and a element clement of ot safety Today the same Investor faces the necessity of or accepting 5 S per cent as a maximum return on or bonds of good quality and between a shade over 4 per cent and 42 4 2 per cent for legal railroads and public utility Issues For the time lime being th th- demand for good Invest invest- Investments investments ments exceeds the supply J. Y P I z S OWEN J. J e 1 ROBERTS ROTC lT Q I AILEE tt 1 p k i v b 1 r eau I I Artist t Don DO A cotton of or XEA E. Service sketches caricatures of or the leading figures In the Teapot Dome trial jr i Nye Justice Frederick L. L I. I I Siddons who will try the Fall Sinclair conspiracy I case By RODNEY NE NEA NE Sen Service Ice Writer WASHINGTON Oct 8 Albert Albert B. B B tV v Fall and Harry F F. Sinclair go on trial in the District of or Columbia su supreme su- su preme court en cn October Octo er 17 on charges charses of conspiracy to defraud the govern govern- government government ment In connection with the leasing ot or orthe the famous Teapot Dome naval oil re re- re serve After Arter endless delays debY legal quibbles entanglements postponements and maneuverings this litis case that aroused the nation nearly nanny n arly five years ago is 13 due to enter the last stage ot or its long long- drawn career And Washington casting an eye over the records and cocking an car ear toward the reports and rumors that emanate from various counsel cham cham- chambers chambers bers Is wondering if 11 the government will have ha any better b luck in Its efforts to jail fall Sinclair than It had in its ci- ci efort fort to Jail Edward F F. The Sinclair Fall-Sinclair trial will wll be the third presentation of or the government oil oU cases before belor a Jury l. ACQUITTED Fall and were acquitted of or conspiracy charges In to connection with the Elk Hills lease although the su supreme su- su supreme preme court shortly afterward made the Jury that turned In that verdict look loos peculiar by canceling the Elk Stilts Hills lease branding the the- th lease as fraudulent and corrupt and forcing Doheny to pay back to the gov government more than Then Sinclair was tried on charge charce of or contempt of or the senate for re re- refusing refuSing refusing fusing to answer questions during their investigation of or the leases He lIe was convicted and his appeal is now nov pend prod pendIng ing tag Atlee Allee Pomerene and Owen J J. Rob Rob- Roberts Roberts Roberts erts special government counsel who nho are handling the oil cases are making no predictions The Jury in us this trial will II be like the Jury In the Fall-Do- Fall case In that it will not have hac the supreme court decision to guide It The supreme court ruling on the Teapot Tea Tea- Teapot Teapot pot Dome lease which the circuit court of or appeals canceled Is tainted by fraud will wll not be handed hand cd down until after the criminal proceedings are over Anyone Anone who wishes may bet on the governments government's chances to beat Sinclair before the supreme court and recover Teapot Dime D me but pu never can tell about a Q Jury of twelve good men and true Pomerene and Roberts were sorely disappointed with the Doheny Jury but as there are ore more technicalities In Involved in- in involved Involved in the present case ea e they are not over confident of or convicting Sin Sin- Sinclair Sinclair clair elate and Fall They may even een get another Jury none of or whose members mem mem- members bers be have hae ever read about Use tile case in inthe Inthe inthe the newspapers In the last trial the prosecution had used up u nine out of or often orten often ten challenges when the defense had used four after aCter which they were help help- helpless less les for if they hey used the tenth chal l challenge challenge lenge almost almo t anyone could get et on the jury after that WOULD IT I The prosecution would as soon try tr this case outside of or the District of or Co Co- Columbia Columbia lumbia where people vote rote assume as se- se re responsibilities I of or citizenship and do not believe hi lIeve generally that its it's no crime to the gyro gyn government gO On the other hand the Judges of or orthe the district supreme court where here the trial will be bp held arc are all high grade lattice Justice gave a virtually per per- perfect perfect perfect performance at the Fall Fall-Doheny trial and Justice Siddons who will pre pre- preside side at the coming trial Is highly respected The trend tren of the governments government's rise rass r s will II follow tollo closely th th lines Imes of its civil chU fit sett to annul 1 the st lease but different tactics tactic Are employed em em- employed plo d In reaching the mind i Col Cat Hober rober V. W. Stewart head of the Standard Oil Co of Indiana ex expected ex ex- expected peeled to be an Important nt witness from those used med In Impressing the Judicial mind It appears that the Sinclair Fall Jury will not be subjected to a lurid picture of the yellow vellow peril bogey boge that it will wll not be likely lIely at the to con con- consider consIder consider sider the hard boiled Sinclair a kindly old man incapable of or misdoing and that it will wll not be told that the Sinclair Is alleged to have Bare sneaked to Fall was only a II friendly loan from one old prospector to another But it may mn be difficult to convince an am ordinary Jury beyond bi ond a n doubt that Sinclair Fall The government would like to be able to show that Sin Sin- Sinclair Sinclair Sinclair clair planked down a couple of or hundred hun hun- hundred hundred dred thousand dollars on Falls Fall's desk when the lease was signed but it cant It will try to show that Sin Sin- Sinclair Sinclair clair passed the bribe by promoting the Continental Trading Co Co Ltd in Canada which was used only to buy oil already contracted for tor and sell it at a profit some ot of which profits were converted Into Liberty bonds and later lat r brought to 10 loll Flail In Pueblo Colo by his son-in-law son M. M T T. Everhart A different method from that of ot sending Fall a black handbag contain contain- in Inc The government however consid considers ers era that its case cose is strengthened by evidence e that Fall allowed no competitive comp tI- tI tIthe the tive bidding for Teapot Dome and that Fall fail bandIed handled the whole lease by b himself him- him self pelf in a secret and high handed man man- manner ner The TIle defense will contend that there was dancer of or drainage If the government go didn't act quickly but the prosecution says ays Fall FaU had been advised by various government gO experts that there was no Immediate danger If It Itan any an Judging from Its lis conduct of or the Fall-Doheny Fall trial the Government co will not try to tell teU the Jury that tha t the court of appeals held that the Teapot lease was obtained by fraud and tion Sinclair probably will not take the witness stand In his own 11 defense as liS Doheny did Sinclair wouldn't tell teU the senate what hat It wanted to know and he hasn't testified in the civic case Ills His attitude has hns been Try and itt it I IOne One new witness is expected to tc telI- telI testify tl- tl fy whose hose story may mav be of ot ma orator lor Im Importance Im- Im importance This is Robert no ert W Stewart head of or the Standard Oil 1 Co of or In Indiana In- In diana The government R has hown shown that Sinclair H H. S. S Osler Osier H. H M M. BUck Black BUckmer Blackmer mer J. J E E. ONeil O'Neil and Stewart met In New York to t organize the Continental nv THE TilE MISSING I G EVIDENCE Its missing link of or evidence con- con conc concerned i c details de of or this organization ana and Continentals Continental's C vI n subsequent su bar serif operations operation o as ns a s they affected the bond bond transfer transfer The records record were ere burned vh when n Continental l was wa taken over by the Sinclair Interest Blackmer and ONeil O'Neil left for Eu- Eu Eu Eu- rope Osier Oster didn't provide the de- de desired desired sired Information and Stewart art was abroad when most wanted Stewart has since acknowledged a for the Sinclair Tall trial and it may be that the government will obtain Its first Important nt testimony t mony about the Continental Trading transaction on which so much seems to hinge After a long search Blackmer was vas lo located b- b bested ested d In Europe Although he lie stands liable to the loss lass Io s of or in prop prOD property I erty under a new law obtained bv by by Senator Tom Walsh W I h Blackmer Is not expected to return here for the trial and there is no way to ex extradite ex- ex extradite him |