The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-05-26
Says He Himself Will
Direct Prosecutions
Next Week.
AIDED SMUGGLERS,
WATSON CHARGES
Morgan Influence Blocked
Fight on Trusts, Ayers
Untermyer.

A'H tHe ooIlDdTOfhent OF AtIOf-
ney General Daugherty continuing
In Congress yesterday with un-
aoated intensity. the Attorney Gen.
eral issued an announcement of his
decision to take personal charge of
the prosecution of war fraud cases
instead of employing a special as
sistant attorney general to direct
the work
The Attorney General further
announced that Representative c.
Frank Resvis. Nebraska, who is
not a candidate for reelection,
would resign his seat in Congress
to assist him in the prosecution of
these cases. He also announced
the appointment of Col. Henry w.
Anderson. a Richmond lawyer, as a
second special assistant.
These two will cooperate with
former Representative Roscoe Nc
Culloch. Ohio. and Assistant Attor-
ney General Guy d. Goff. under
personal direction of Mr.. Daugherty
in the war fraud prosecutions,
presentation of cases TO begin be-
fore a special grand jury here next
week Other assistants are to be
appointed by Mr.. Daurherty in the
near future. Their salaries will be
$4,000 a year each.
Four-Cornered Assault.
Yesterdays attack on the Attor-
ney General was four-cornered
affair. of which the OUTSTANDING
features were:
Charges by Senator Watson.
Georgia. Democrat. that Mr.. Daugh-
erty. through Thomas F. Fielder
permitted the struggling of liquor
into the United States on a large
scale and ordered the release of
persons and carEoes seized by dry
enforcement officers.
Assertion by Samuel ". Unter-
rnyer. of New York. in a letter to
Senator La Toilette. Wisconsin. that
J. P. Morgan and Company have
such influence with the Department
Of Justice that they have been able
to block all prosecution of the
General Electric Company for vio-
lation of the antitrust law
Complete blockade of the House
recess program by Representative
Woodruff. of Michigan. in an effort
to force action on the resolution
providing for sweeping investi-
CATION of Mr.. Daugherty's failure
to proceed with the prosecution Of
the war fraud cases.
Intimation by Senator La Toilette
that impeachment proceedings
against Mr.. Daugherty will be in
order II he fails to take steps to
prevent the prospective merger Of
various big steel corporations.
senator Watson Leads Attack.
Senator Watson led off the at
tack by bringing up the part played
BY Mr.. Daugherty and Fielder in Sc
curing the release of Charles w
Morse from the Atlanta penitentiary
during the Taft administration. The
whole thing. Senator Watson said.
referring to the Morse case. was
"a fake. a sham. a makeup. a pre-
tense" Then referring to Fielder.
he said:
What is his mysterious influence
with the attorney general? The
day before yesterday. l responded
to a card from the reception room.
There I met a young man who told
me this. OF course. ] cannot vouch
for it. but I can give the name of
the man and tell why're he can be
found.
He said that not long ago, a
British ship. the ]. NJ. Young, SAIL
ing under a British license. came
into New York with a cargo of
whisky from abroad. The dry
agents got on to it, They seized
the whisky. libeled the ship and
swore out warrants
The accused ran to the office
of Fielder and employed him. Fielder
came to Washington. so the young
man said, had an interview with
Attorney General Daugherty and
from Daugherty's office went to
New York with positive instructions
to dismiss the proceedings and to
release the whisky. The orders
were obeyed. II it is not true. let
Mr.. Daugherty say II Is not.
"Ordered Warrant Dismissed
The young man told me of an
other case where 100000 worth of
wine was seized upstate in New
York and again the accused hot
footed it to Felder's office and en-
ployed him. Fielder came to wash
ington. saw the. Attorney General
and again he ordered the warrant
dismissed and the wine delivered"
Cntermyer. as counsel for the
Lockwood investigating committee
in New York, wrote Senator La
Toilette that he wished to have
promptly placed before Congress
certain facts relating to the GeneraI
Electric Company. He declared that
the General Electric Company had
a virtual monopoly on electric light
bulbs and that their profits were
about 100 per cent. He had made
repeated but unsuccessful attempts
to induce the Attorney General to
order proceedings against the COM
pany for violation OF the antitrust
Law he said
ITO be brutally frank about the
business" said Untermyer. Il am
satisfied that the over5hadowinE
power of J.: P. Morgan and Com
pany, who are the financial man.
ayers of this company, and who
really control it's destinies and one
Of whose members Is a director In
the company. will make Ii impos-
sible ever to secure any sort of ef-
fective relief through the Depart
ment of Justice"
Senator La Toilette took occasion
to rap the Attorney General for his
apparent reluctance to take steps
to block the big steel merger.
Asked II he mean to imply i'm
parchment proceedings, Senator La
Toilette said: You can draw any
inference you please"