The Washington herald., 1922-05-27
Attorney General Admits
Payment and Says He
Never Denied 1t.
FRAUD PROBE VOTE
BLOCKED, 14s TO ia
House Defeats JOhnson's
Move to Force Graft
Inquiry.


Attorney General Daugherty re-
ceived $4,000 for his services in con-
nection with the liberation from
Atlanta penitentiary of c. w. Morse.
and at no time denied his connec-
tion with the case.
This reply to the attacks of SEN
ator Caraway. of Arkansas, was
read from the floor of the Senate
late yesterday by Senator Lenroot
of Wisconsin.
1t was contained in a letter writ
ten to Senator Watson. of Indian.
by Daugherty, which Lenroot read
at Watson's request.
Says He Was Misunderstood.
Watson. on May 12, denied tina,
Daugherty had been in any way
connected with the case. or had ever
received fees. The denial was in re-
sponse to a charge by Caraway tha,
Daugherty and Thomas b. Fielder
another attorney, got s25,O0O and
obtained the release of Morse By
Misrepresentation.
Il recall very well a general con.
versation We had some time age
regarding the Morse case" said
Daugherty. Il certainly did not In
that discussion make the statement
to you that / had no connection
with the Morse case. civil or Grim
inal. My connection with these
cases was well known throughout
the country because of extended
ntthlirit,r
regret. Senator, IL you misunder.
stood me-"
Grand Jury Organized.
DauSherty went on to say tha,
his connection with the case could
be known to the world without re.
fectiou on anyone." The S4,00s.
he explained. came from Fielder, and
was about half the expenditures he
had made during a year of work.
Mea eantime. a special grand jury
has organized. to sit in the District,
which will investigate war fraud
cases. prosecution of which Daugh-
erty himself will direct. Alleged
laxity in prosecution of these cases
Las been sharply attacked in Senate
and House.
The new war contracts division of
the Department of Justice is or
ganized and ready to prosecute war
fraud cases on an elaborate scale,
Daugherty announced last night.
The division probably will be ready
to begin work Monday, DauEherty
said. presenting evidence before the
special grand jury.
Unable to Force Vote.
House leaders yesterday success
fully blocked an effort by Repre-
sentative johnson, of North Dakota,
TO force a vote on the Johnson
Woodruff resolution calling for an
investigation of the departments
activities in war fraud cases.
johnson sought to bring up the
resolution as question of "the
privilege of the House" He was
ruled out of order. appealed. and
lost by a vote OF 149 to ia. Eff
forts will continue. he said. to force
action.
The contention of Johnson was
that Chairman Campbell, of the
Rules Committee. had no authority
to keep in his pocket" a favorable
report on the resolution ordered by
the committee May 3. The chair
man. johnson said. was instructed
by motion to bring the resolution
before the House at the earliest
possible moment Campbell dis.
puted, this.
Dispute Over Wording,
No such language was contained
in the motion" Campbell declared
Il made the motion myself. {.
Johnson retorted.
Johnson'S argument that camp.
bell was interfering with the bust
ness of the House was disputed nv
leaders. who cited examples OF
where other special rules. reported
out earlier than the one applyinp
to the resolution IN question, had
not come up for consideration. Fin.
ally Speaker Gillett held that ar
unreasonable time" had NO,
elapsed. and the House sustained
him.
House Leader Mondell declined tr
answer when asked by johnson n
he intended to kill the resolution
Campbell remained silent when /,
was charged he intends never tr
report the resolution as the com.
mittee directed.
Hint that government officials
employed during the war are in
volved in the investigation to he
made by the Department of Justice
of war frauds was given in a
statement yesterday by Representa-
tive c. F. Reavis. of Nebraska, who
resigned to assist Attorney Cen
eral Daugherty.
II have no illusions regarding the
difficulties to be encountered" Rea-
Wis said. mo crook outside the
government ever robbed the gov
ernment without the assistance of
some crook inside.
Consequently the records in
many instances are in such condi-
tion as to make the trail of the
serpent both devious. and difficult.
BELFAST BELLBOY