Evening star., 1924-04-16
CHARGES MANY FRAUDS
IN WAR SEIZURE CASES
fContinued from First PAGE,

Continued from First Page,
| up all the experts and gave reports
mission and to Mr.. Fordney over in
the House. / had four or fivs men
helping"
What did the department want to find
out?" asked Senator Jones. .ss ~.
"One thing. some japanese importers
wanted special rate, and one or the
commission experts was actually en-
ployed by Japanese concern. Another
expert was dealing with the sugar
crowd" ,~- i
"Then it wasn't the Tariff Commits
sion. 1t was their experts" Senator
That's right" Means replied. He was
excused for the time being, and the
committee recessed its hearing until to-
morrow
Justice Investigator. charged that Mar
Btin Z. Kern, purchaser of the Bosch
magnetic property. had paid $4,000 in
1920 to Joseph F.. Guffey, a Demo.
cratic leader of Pennsylvania and
Custodian 4. Mitchell Palmer. The
payment, the witness said, was
ostensibly in connection with liquor
permits which Guffey never. delivered.
Serious Irregularities in alien prop
Islands also were charged by the
witness, who said Francis Burton
Harrison, then governor generai. ACT :
ed in the matter for Palmer. All OK
were turned over to the Department
of Justice while Harry NJ Daugherty
was Attorney General, he said. put
nothing was done about them.
Srorck also told the committee that
since he testified before it last week
his papers both in the Department. OF
Justice and in his hotel room had
been mysteriously inspected, although
they were under lock and key.
MaaIaston Fails to Answer.
When today's session opened Chair
man Brookhart called the name of
Warrington, "the same Warrington
who wanted to testify when he was
in Paris" There was no answer. and
Storc5 was called TO the stand.
Senator Wheeler, however, insisted
that George Chamberlain, counsel for
II. Nj. Daugherty. produce Naming
ton, who is standing in the back or
the room"
StoFck Is Examined.
Senator Wheeler consented to drop
the subject for the moment and pro-
ceed with the testimony OF Storck.
who began by declaring that Martin
E. Kern, purchaser Of the Bosch
Magnetic property from the alien
property custodian, had paid Joseph
+. Guffey, Democratic leader in
Pennsylvania and former director OF
sales of the alien property custodian,
| the sum Of $4,000 "to influence Sthe
release OF liquor"
The witness produced letter from
Kearn's attorney in Allentown, Pa
referring to $4,000 payment in
1920 as a loan" which was not re-
turned by Gufrey. The correspond
encc did not indicate that Kearn ever
obtained the whisky permits he
sought.
Reading from Department of Justice
files. by permission of the new At
torney General" he said. Storck de-
ciared he had been told by Kern him
self of the $4,000 transaction.
storck testified that since he had
his brief case containing his papers
had been cut OPEN in his hotel room
and his locked cabinet at the Depart
nent Of Justice had been 'jimmied."
stractsdS from the brief case. the
witness said. adding that another De-
partment OF Justice agent had been
similarly visited last Sunday"
The witness said he had reported
the facts to Mr.. Burns
His own work in the investigation
of Kern. Guffey and the Bosch case,
storck said. had been completed,
II think the government COULD get
right away" storck said.
Asked how much the government
could get back in the Old Hickory
Powder Company case. he replied:
I'm on S record as as saying yin, 100000
estimated up to 1000. 600"
Senator Wheeler said he thought
T. Coleman du Pont. former senator
from Delaware. should be called as
witness. The Old Hickory plant now
is in the hands of the du Pont in
terests.
He then took the alien property
custodian's seizure OF the property of
Otto Weber, a member of the firm Of
| in the Philippine Islands. He declar-.
ed the case never had been followed
up by the Department of Justice.
Charges Many Frauds.
Storck said his reports on the
Weber transactions had found sew
eraI criminal charges applicable, but
mot a step, nor a conference has fol-
| tions have been made"
Francis Burton Harrison. then
governor general Of the Philippine
Islands, acted as the agent of A..
Mitchell Palmer, the custodian" the
witness said.
Various other properties owned by
Germans were seized by Harrison,
and sold by, fraud to dummies"
Horace r. Kelly & Co, IAN A,neri-
can firm handling Philippine tobacco
from German-owned plantations" the
witness said, was awarded s125.000
| for damages to business reputation
by Palmer through Malcolm SUM
heimer." He declared Germans in
termed in the Philippines were re-
leased IL they would sign on the
dotted line" their approval of the
He said he investigated nearly a
score of transactions of the custo-
dian in the islands and recommended
| criminal prosecutions. but added:
81 don't know a thing about what
became of my report"
'would Raise Your HAIR"
You should see some of that cor
hair" Storck said.
Fred Berry, confidential secretary
to Gov. Gen. Harrison, he asserted,
had gone to an internment camp
ers they could be released if they
! would consent to sale of their
property.
"All the sales of seized property
went into the hands Of CLIQUE headed
by the Philippine National Bank" he
continued. TT was all arranged in
each case who was to bid and how
much they were to pay"
Former President Wilson set aside
some of the sales by executive order
because they were so raw" the wit
ness said, but the property usual
ly was sold again later ''to the same
crowd" His investigation was called
| off" before he could complete his
work, he added
In going through several of the
Philippine cases. Storck said, he, had