The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-14
HARRELD SAYS
Pull FREED
7 N||[LERS
Got Brothers OF, Senator As
ssrts Pittsburgh Rum
Deals Revealed
Continued from Page I'D
aw / wouldn't do it and did

Asked whether he ever heard that
McGraw had collected money in
Oklahoma to turn over to Daugh-
erty," Harreld said he had no
positive information.
A subpoena was issued by the
committee for George Remus, Of
Cincinnati, one Of the millionaire
prisoners" now in the Atlanta peni-
Tertiary.
The committee summoned Remus
In conHection with liquor frauds in
Ohio. The. subpoena ordered War
den A.. e. Sartaine to produce the
Ohio millionaire forthwith.
Records Disappear.
All confidential files On Govern
m mt investigation disappeared
from the Pittsburgh office Of the
Department Of Justice shortly, after
the Daugherty inquiry started, H.
S. Burton. Cleveland private de.
tective. told the committee.
Burton said he learned this from
Herbert Little, a Pittsburgh De-
partment of Justice agent Among
the documents which disappeared,
Burton said, were reports on liquor
law violations. as well as other
Federal crimes.
Little told me that all the De.
partment's agents in Pittsburgh
were ordered out Of town. for a
few days." said Burton. He said
that when they got back all the
papers and files had disappeared.
He took me into his office and
allowed me the empty file cases."
when did this happen"
After Probe Started
"Since this Daugherty investiga.
G1on started" the witness replied.
Burton also told about the activity
OF detective agencies in Ohio which
sought to convince manufacturing
corporations that organized labor
was aligned with Soviet Russia.
He told of sending circulars to Ohio
manufacturers on information he
obtained from Little.
Little said he went to Russia
for the Government" Burton added
He said he had gotten messages
from the Soviet government ioffi.
Gals to the leaders Of organized
labor in this country. He turned
over the information to the Govern.
ment as WELL" +
did he work for any corpora.
tion."
Drew Two Salaries
Eyes, the United States Steel Cor.
poration," said Burton. 'He told
me he drew salaries from both the
steel company and the Department
Of Justice"
: Burton said Little took him to the
Department of Justice office in
Cleveland and showed him files
relating to alleged activities of the
Third Internationale.
I'VE used, that information to gel
out a circular to manufacturers
corporations in Ohio" said Burton
1.-THE circular explained labor move.
ments and their connection with
revolutionary policies
Burton was asked to tell about
beer transactions in Cleveland. He
said he and other Cleveland agents
were ordered to Cincinnati in No.
venber, 1920, to investigate.
II was assigned to 1882 and 1918
Vine street, Cincinnati, and 600
Plum street, Cincinnati, which were
soft drink places.
Bought Beer There.
IT bought beer in all three. and
they were raided. Tests showed X
was illicit beer. The proprietors
said they bought the beer direct
from trucks as near beer
The breweries were prosecuted
but they settled with the Govern.
ment by compromise in 1921.
"Qne settled for $4,000. / don.
know the other terms. There were
no criminal prosecutions.
Then Prohibition Director CauntS
received many complaints about the
manufacture and sale Of beer in
Cleveland. -
'''I was ordered to investigate the
Cleveland Home Brew Company.
Another agent" said Burton
land I bought case beer on tine
brewery platform.
He bought more at the Ebert
Brewing and Beverage Company
plant, and analysis revealed an
Illegal alcoholic content. Burton ties.
titled.
THE prohibition director, Fred
Caunts, had a brother, Frank, whU
was an attorney. Frank Caunts rep
resented the Eilert people and goi
= special order to release soft drinks
IN the brewery while we had charge
Of It under injunction proceedings. "
Wire From Daugherty.
Before the defendants in each
Cleveland brewery case had. been in
dicted on conspiracy charges, Burton
said, he discovered by chance that
they had been furnished with copies
or the evidence against them.
Subsequently, Burton, continued
the United States Attorney General
at cleveland received a telegram
signed with former Attorney Genera
Daugherty's name, ordering the at
torney to cease prosecutions because
the, breweries had compromised for
$12 900 and $4,000 each.
Under oath the witness said he
had seen that telegram. The in.
struction were obeyed, Burton said
Did the sale of beer stop?''
asked Wheeler.
''No. they were. selling beer az
recently as three weeks ago."
Under cross examination by
counsel for Daugherty, Burton
denied that 1t was a common
practice--in Ohio, at least--for the
prohibition enforcement department
to recommend a settlement by com.
promise In any case where indict.
ments were pending, as were the
circumstances in the Cleveland
brewery instance.
Burton admitted that regardless
Of the source of recommendations
the dismissal Of the cases was &C.
conplished with the approval Of the
trial court.
After further brief cross exar ina.
ton. adjournment until tomorrow
was taken.
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