Evening star., 1924-05-16
DistiIIer Places Safeguard
Cost in Vast Rum Business
Up to $500, 900.
WAS SENT TO PRISON
DESPITE GUARANTEES
Was Promised Daugherty Would
Keep Him From Atlanta-Un-
able to Say Money Split.

protection money" aggregating NOR
than a quarter Of million dollars
to Jess w. Smith, friend and con
slant companion of former ATTORNEY
General Daugherty, was told to the
senate Daugherty committee today
by George Remus of Ohio. who SAID
ne made a fortune out of illicit liuuor
sales before he was convicted and
sent to the Atlanta penitentiary.
brought before the committee under
guard, the witness related how he
000usnt string of distilleries in
tolstead act was passed arranged
| IHroueh a Sentlemen'S agreement
WIN smith to get withdrawal permits
ana was protected from prosecution
TOT year and half while he ac-
compllshed the distribution of som.
! $4,000 or 100000 gallons of LIQUOR
under the pretense of selling il for
medicinal purposes.
Remus could not recall just how
much money had been paid Smith. bu
900 to 100000. He never asked h
declared; whether the money wa
spht' with any one else. The whisky
| was dispensed ostensibly to varioue
! orug stores. he said, but really reach
eu tne pubic through bootleggerS
Even after his conviction in OH
IN" witness said, Smith promised htns
| tnat ne never would see the pen
etentiary."
The plan was. if the case went to tie
supreme Court, to secure a pardon. aud
the witness insisted that Smith had told
MN Attorney General Daugherty would
see that clemency was extended. Ru,
Smith killed himself a year ago tJjS
month without having made the promise
good.
What was told you as to Smith :
Connection" asked Senator wbeelor
Close to Daugherty.
He was very close to the Attorncr
General" Remus went on. He agree
that for consideration of so much
per case he could get the permit
mere would never be any prosec,.-
| tionS''
What did you pay him first9''
! Il think it was $4,000"
What was the aggregate"
| i can't remember exactly.
| you've got some checks?"
Yes; in secluded spot; but il
amount to about $1,800,000"
did you give him that?'
| Not all that, some of that was fo
tSistilleries"
in the aggregates"
oh, about s25O,0o0 and 5000. ooe
mot was IOT pTOl6cllOn.
Was Pay For Protection.
Yes, and for permits for service
in withdrawing liquor. abour III
various institutions in which ] wa.
concerned"
Remus was asked to explain the
necessity for the payments. He told
OF the permits for taking whiskey
from distilleries to drug concerns
! There was an understanding tina.
n i,
to $3.50 per case on each lot Of
whisky that was handled throngb
the Renus distributor system.
Melville Sternberger" collected the
permit payments in New York and
Judge Hart" was prohibition direc-
| tor at the time the permits were
issued, the witness said.
| How did YOU pay money!" Chair
man Brookhart asked.
! In cash always-sometimes in 81 :
! 900 or $500 bills.
This first $4,000 to Jess Smith
How was that -
I'm $1,000 bills
Was that the largest amour: YOU
gave him at one time 49,
| yes"
Given in Summer of 1921.
/ What was the date >" asked Sen
| ator Wheeler.
IN June. July. or August. 1921"
/
! the Hquor-how long?" put in Chair
| man Brookhart.
! For a year and a half"
What amount of liquor did you re-
| lease"
/ That's a hard thing-I can't even
! give You an approximation-I should
! say 100000 of 100000 gallons. [ pai
the government 100000 or $1,000, ,ooo
in taxes at s1.20 per gallon
And in addition. you paid Jes.
| Smith $3.50 or s2.50o"
Yes"
! Remus said he saw Smith in In
dlanapolis. at the time Judge Ander-
son dismissed the coal cases"
How much did you pay him"
Says Con Present.
/ Il can't answer that without ref
| erence to my bank account" Remus
said 1T was around 100000. I sub-
sequently saw him at the station
with the Attorney General. 1 think
| Col. Goff was with them"
| The Squibb Company at Indiana,
oils. Remus said, was "one of his
| institutions"
Isn't 1t fact that you drew out
cash checks for s275,OO0 for payment
first met him and your conyictiona ,.
Remus said he wouldn't be abIe =,
tell within $4,000 -
/ I'll produce all the checks" he
| added.
He always met Smith personally.
be said, though some of my men
| would know little about the deal
Il met Smith at the DeschIer Hotel,
at Columbus, during June, July ol.
August, 1921. to pay him money thrcp
| or four times" he said.
| Asked about a meet at a hotel in
| Washington. he said:
The whisky was coming through,
| pursuant to our gentlemen's agree
ment. He had something coming TO
him. ] met him to settle up the cur
! rent account"
Sold to Bootleggers.
The whisky, he said. was being sold
to bootleggers in a half dozen central
| states.
Did you pay him money every time
you metz asked Senator Moses, Repub-
lican, New Hampshire.
That was the purpose of oul
meetings" Remus said There was
| no sentiment in our relations"
| Did you meet him after your in
dictment?" asked Senator Wheeler.
! Yes, he told me there would be :,
| vigorous prosecution, that the De-
| partment of Justice would put up a
| fight, but that / would never see the
penitentiary. The jury might con-
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