Evening star., 1924-03-19
DAUGHERTy REM|SS
|NLOTTERY CHARGE
CASES, SAYS TEXAN
Witness Admits U. S. Had
Been Prosecuting, But As
serts Under Wrong Laws.

The Daugherty investigating COM
mittee had a brief, dull, drab session
today because Senator Wheeler, the
committee prosecutor" had a bad
cold and remained at home.
Will A. Orr, former private secre-
tary to Gov. Whitman of New York,
was waiting to be grilled further
about the film deals" and whisky
deals on which he testified yester-
day, but the committee turned aside
from Orr to hear briefly again Maco
Stewart, a Galveston, Tex, lawyer,
who complained in his testimony yes
terday that the Department of Justice
had been remiss in prosecuting lot
teries and to hear briefly also T. D.
Dawkins, a Texas post office inspector.
Prosecution Admitted.
Attorney General Daughertys coun-
sci brought out on cross ton
that the government had been prose-
cutting the concerns Stewart COM
planned of, but the witness insisted
they had not been prosecuted under
the lottery law, as he contended they
should have been.
The Attorney Generals counsel an
nounced they did not wish to cross
examine Orr and he was excused in
definitely. .-.
The hearing will resume at 10
o'clock tomorrow morning.
Burns and Haynes Present.
Newly summoned witnesses jammed
the anteroom, among them w. ].
Burns. chief of the department bureau
of investigation, and Roy A. Haynes.
changed smile with CASTOR Means
and then walked out for a private
talk with this parsonage, whose de-
tective efforts have become famous.
The chairman let Orr go for a mo-
Texas attorney who has brought in
the complaint as to Misrepresentation
of lottery operators. Mr.. Howland
took the witness for cross examina-
tion.
Stewart repeated his story that
various concerns adopting the name
of United Home Builders Associa-
tion,' or some such term, were really
engaged in running lotteries.
These concerns tried to convince
stockholders" Stewart said, "and
later on borrow money at or per
cent interest to buy home. The con-
tract they sell is SO beclouded with
words that the victim doesn't see what
he is doing"
Says Most Investors Lost.
About 60 per cent of the investors
'1ost every cent they put in," Stewart
asserted.
You said yesterday that the Indi-
ana Mortgage Company. and William
Stacks and a number Of people were
indicted in Indiana" Mr. Howland
said. He read the names. The in
dictment was fer use of the mails to
defraud.
This Indictment meets your ap-
proval'" Attorney Rowland con-
cluded.
"As far as it goes" Stewart re-
turned, but it seems to indict them
in the place where there isn't the
evidence to prove them guilty of run
ming a lottery and put them out of
business all over the country"
He agreed that was matter of
lawyers opinion"
Stewart said in his original state
ment that he sent a brief explaining
his charges to the Attorney General
Mr.. Howland told him in the course
of the examination that this COM
municatfon had not been found at the
Department of Justice. He was ex-
cused, and Dawkins was called.
Conferred With Omcials.
proceed. 3. C. Baldwin. captain of
Texas Rangers and former agent of
the Department of Justice, testified
that various federal officials in Texas
had tried to "blackmair' oil pro-
moters, and named Dawkins as a
person able to confirm the charges.
Il conferred with my superior
ton" Dawkins said. THAT Was
George NJ. Sutton, inspector in
charge. He told me there was
nothing, in Baldwin's belief that
partment, that there wasn't any evil
dence to justify it."
He went on to explain that he had
investigated the United Home
Builders. Henry Z Zweifel, United United
with him in the work
I'VE brought in officials of these
concerns for conference" he went
on. "At the conclusion of the session,
with the approval Of the United
a list of ten questions"
Ordered to Warrington.
"a few days after that I was or
dered to proceed to Washington with
all the data. M. M. Crane and Thomas
Love, attorneys for the loan COM
panies, had come to Washington to
quiet the investigation. The United
Home Builders Company was not
represented by these attorneys, but
eight or ten other companies WERE"
will Hays, the Postmaster General,
had referred the matter to Joseph
Stewart, special assistant to the At
torney General.
Mr.. Stewart gave the Postmaster
General an opinion that the loan
companies, by eliminating some Sec
tions of their contracts. would not
be Objectionable to the Post Office
Department. The decision was at
once capitalized by the loan COM
panies."
did the Postmaster General ap-
prove that opinion?" Senator Jones,
republican, Washington, inquired.
He did9i this way" Dawkins said.
"He advised the companies per the
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