Evening star., 1924-05-05
CHARGES DAUGHERTY
BALKED TRUST LAW
Witness Tells Senate Committee Of
Alleged Intervention in Rail
road Combine Case.
LIQUOR DEAL IS AIRED
Illinois Dry Agent Says Breweries
Still Operate.


Former Attorney General Daugher-
ty personally interviewed in the liti-
cations over New England railroad
combinations IL was charged today
during the Senate inquiry. to relieve
the New Haven line from the neces-
sity of obeying the antitrust law.
Conrad W. Crooker. as attorney
for $500 minority stockholders of the
Boston and Maine, testified before
the Daugherty committee that the
New Haven had gotten through the
back door OF the Department of JUS
tice and induced Mr.. Daugherty to
Reopen" the proceedings affecting II.
Daugherty, who had r. G.. Hutchins.
jr., of New York, as a financial ad-
wiser. arranged n secret meeting" in
the chambers OF Federal Judge Mayer
in New York in May. 1922, Crooker
said. and the final decision to modify
the decree was reached. Crooker de-
clared his clients were not repre-
sented. but said he charged no i'm
proper conduct against Judge Mayer.
Daugherty'S intervention into the
New England transportation tangle
came in December, 1921, Crooker said
and resulted in modification of a con-
sent decree entered against the New
Haven's control Of the Boston and
Maine. The step, the witness declar-
ed. was grossly unjust" to his clients
and there was mo good reason or
| excuse" for it. The Interstate Com
merce Commission, he insisted. had
consolidation and the intervention of
the Department of Justice was
grossly improper"
Says Daugherty Got Busy.
His clients. if the Department of
Justice had stayed out. would have
been able to buy the New Haven's
stock in the Boston and Maine,
Crooker continued, but before they
could act "Mr, Daugherty committed
himself and got busy with the New
Haven officials, the bankers and the
others, to modify the decree
The Massachusetts utilities COM
mission on January 25, 1922, protest
ed the modification.
II came to Washington" CTooker
said, but was never allowed to see
Mr.. Daugherty, though I made sew
eral attempts. His assistant, w F.
Martin, told me that they had never
had the Massachusetts letter"
Legal steps by which the Groomes
& UIlrich Co. a Chicago liquor house.
distributed 5000 cases of high grade
intoxicants among its stockholders
and escaped penalties under the
Volstead act, were described at the
outset of today's hearing.
Explains Liquor Distribution.
Charles A. Williams. attorney for
the concern, explained the plan by
which the corporation was dissolved,
and it's assests of whisky, wines and
cordials, turned over to 130 Chicago
citizens, who bought out the eight or
ten original stockholders.
Though the prohibition enforce
ment unit has instituted prosecution
against officials who issued the per-
mits, Williams insisted that the trans
action was entirely legal
Senator Wheeler, Democrat, Montana,
committee prosecutor, tried in vain to
get the witness to admit that the 100
"knew they bought stock, but were
going to get whisky"
"These people knew they were do
ing something entirely legal" Will
liams said. They knew the COM
pany's assests were entirely liquor. l
haven't the psychological insight to
know their reasons.
The government seized about 100
or 1900 cases of the whisky during
the distribution, Williams said, but
the balance got to stockholders. Lltl-
cation in the case still is IN progress.
Relatives OF Judge.
Senator Wheeler got the witness to
identify a DR.. Isham, one OF those
who got the stock, as a brother
in-law of Federal Judge Carpenter"
and another, a "Mr. Birmingham" as
"a son-in-law or brother-in-law of
Judge Carpenter"
why bring in Judge Carpenter?'
asked Paul Rowland, attorney for H.
NJ. Daugherty.
TIL show you after a while" Sem
ator Wheeler retorted.
Williams identified himself as re-
publican ward leader in Chicago, and
one of those indicted in the liquor
distribution transaction. Blrming-
ham and Isham were not indicted
The only people who were prosecuted.
williams said, were those VINO
changed their political alleglance
from Brundage,'' the state attorney
It was put into the record that
williams was acquitted after trial
on his indictment.
Edward S. Lyon, who 1dentined
himself as one of the Chicago beer
SQUAD" of the prohibition enforce
ment unit, testified that some brew
cries closed by federal injunction
still are making beer"
Senator Wheeler introduced what
purported to be an express company
receipt showing that twenty cases of
liquor were delivered to 1925 K street
the little green house" repea tedly
referred to in testimony as the home
Of Howard Mannington-on October
81. 1921. The document was present
ed in confederation of testimony
given some weeks ago by Dan Smith,
a negro butler, that liquor deliveries
had been made there.