The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-05
SOME SENT
JUDGES
KIN, IS
CLAIM
Divided as Assets" Among
Stockholders Of Chicago
Co., Senators Told
By WILLIAM X. HUTCHINSON,
International NaHus Snrulno

BY WILLIAM X. HUTCHINSON,
international News Service.
The Daugherty investigation
today ranged from tales of I'M
usual liquor deals in Chicago to
charges of Irregularities in the
prosecution of antitrust suits by
the Department of Justice under
Harry NJ. Daugherty.
Charles A. Williams, Chicago
attorney, told of the distribution
OF thousands of gallons of IL
quors to stockholders of the
Groomes and Ullrich Company, a
Chicago wholesale liquor house.
The liquors, he said, were de-
livered by the prohibition unit.
Later because Of political diff
culties. Williams said, he was in.
dotted along with officers of the
company.
Committee Considers Report.
The committee first held an execu.
tive session to discuss the advisa.
bility Of preparing partial report
to be submitted to the Senate.
Senator Brookhart Rep.) Of Iowa,
chairman, proposed the report be
filed with a recommendation that
the Senate ask the new Attorney
General to lay the evidence before
a Federal grand jury for criminal
action against Harry M. Daugherty.
No decision was reached.
The conference was attended by
Col. William T. Chantland, Assistant
Attorney General, who was assigned
by the Department Of Justice to de.
fend the committee against all in
junction proceedings. Chantland
and the committee members drafted
plans to fight the civil suits filed
by both the former Attorney Gen.
eral and his brother, Nal s. Daugh.
erty.
williams said he was a Chicago
ward leader for the Brundage fac
ton of the Republican party in
Illinois when he put the liquor deal
over. His indictment, Williams said,
followed a quarrel with Brundage,
the States attorney, and Senator
Mccormick (Rep) of Illinois.
Went to Stockholders.
Williams explained the liquor de-
tail in detail. A new company was
organized, he said, to acquire all the
assets Of the Groomes and Ullrich
CORPORATION. The concerns huge
liquor SUPPLIES. he added, were then
allocated among the new stock
Chicago citizens.
"These stockholders knew when
they bought the stock that they
would obtain share Of the COM
pany's liquor supplies?" asked Sen
ator Wheeler Dem) Of Montana.
"They knew they were entitled to
the assets Of the company and that
the assets were whiskey and
cordials."
"These men actually bought the
whiskey by buying stock?"
"Oh no. no one bought any
liquors." Williams protested. "They
got the liquor. didn't they?"
Some of Them" said Williams"
Some 1900 cases were seized, so all
the stockholders didn't get a share.
Delivered Under Permits.
Williams said the liquors, which
were allocated, were delivered to
stockholders by Government agents
under a permit issued by the State
prohibition director.
"Why did the federal authorities
help you deliver some Of the liquor
and then turn around and seize
some of it?" Wheeler asked.
II don't know unless it is that
the Governments left hand doesn't
know what it's RICH, hand is doing"
said Williams.
"A copy of the delivery sheets of
the Chicago prohibition office was
produced and showed that some
liquor was delivered to a "Mr.
Birmingham" a son.in.law OF Fed.
eral Judge Carpenter Of Chicago.
Another batch of fifty gallons,
Williams said, was delivered to a
''Dr. Isham," a brother.in.law of
Judge Carpenter.
Williams said he followed a
precedent set by the Bicardi Rum
Corporation, of New York. which
also distributed its assets of liouors
among stockholders.
1t developed that two OF these
stockholders were former Ambas.
sador James w. Gerard and former
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