The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-08-02
FIXED The BOOKS
Brewers Hid s15O,OOO Loan to
Governor of Texas.
Friendly to Him Because He
Opposed Dry Legislation.

Austin, Tex, Aug. 2.-That the
books of the Lone Star Brewing asso-
citation were fixed up so as to pro-
tect Governor Ferguson" was the sub
stance of testimony offered by Hen
ming Bruhn, president of the brewery.
in federal court here today, where Of
ficials of the Lone Star company are
being tried on charges of rendering
false federal tax returns.
Bruhn explained omissions of en-
tries in the corporations books by de-
claring the books were fixed" SO as
to keep the loan to Ferguson a secret
and not to mislead investigators OF the
tax figures.
Austin. Tex. Aug. 2.-Testimony
which is believed TO have thrown
light on the mystery surrounding the
$156,500 loan to James E. Ferguson
former governor, and which figured
largely in his impeachment trial last
fall, was given in federal court here
Thursday by L. A. Adoue. Galveston
brewer, testifying in the cases CT Hen
GroSSman, treasurer, respectively, of
the Lone Star Brewing association, of
San Antonio, under federal indictm ent
for falsifying income tax returns,
when he told of three notes for $50 900
each which Ferguson gave brewing
made payable to Ferguson, Endorsed
IN blank, were to bear per cent in
terest, payable on maturity. and were
not secured, Adoue testified.
Ferguson Refused to Tell.
Former Governor Ferguson, at his
Impeachment trial and during his re-
cent campaign for denomination at
the Democratic state primary, COM
sistently refused to tell the source of
the loan, maintaining it was personal
matter.
The first of the notes will be due
soon, Adoue said, while the others
mature at later dates
The testimony developed that $685.
600 of the $15O,000 was loaned by
Bruhn and $4,000 by Otto Wahr-
Brewing association. 1t was not
brought out definitely who furnished
the remaining $4,000, other than that
1t came from Texas brewing interests
The government rested its case after
Adoue finished testifying. Adoue de-
MED that any portion of the loan was
to be used to influence legislation.
Ferguson, he said, was financially in
volved and the brewery interests de-
cided to help him.
Ferguson, he said, requested that
the source of the loan be kept secret
and the brewers agreed mot to tell
about it unless necessary
Was Against Dry Laws.
After Ferguson was impeached,
Adoue testified that Bruhn asked me
about the $4,000, saying he knew the
loan was worthless and a loss to the
brewery. I advised him that as to
charging it off, it was between him
and the income tax man." Because
it was desired hot to make the loan
public, Adoue testified. 81 told Mr..
Bruhn to send the revenue men to me
If they inquired about the $4,000
item" He added that he did not see
the revenue agents.
''Ferguson's platform was to let
liquor legislation alone, and that is
what the brewers wanted" Adoue tes-
titled
THE loan was a friendly one be-
cause Ferguson was in trouble" the
witness said.
Asked whether he thought it proper
to charge the $3.50 to the general
expense account of the brewing asso-
citation, Adoue said:
81 think it should have been charged
to bad debts"