Evening star., 1924-04-18
DECLARES SEIZED
LIQUOR WENT TO
G|LLETT'S OFFICE
Former Justice Agent Says
Means and Six Others
Can Tell of Transaction.
SHIPMENT "VANISHED"
FROM UNION STATION
Grer, Informant" Testifes He
Was Discharged After Reporting
on Savannah Conspiracy.

Minute details of the Savannah
liquor conspiracy case, in which
seventy eight persons have been SEN
fenced to the penitentiary, were re-
cited before the Daugherty fnvesti-
eating committee today by Clark
Grier. who described himself as
prominent Georgia Republican and
former Informant" of the Depart
ment of Justice
The witness declared there had been
long delay in prosecuting the cases
after he laid all the facts before the
department, and that his report was
followed by his "discharge" by w J.
burns, at the instance of John L.
Phillips. the Republican state chair
man. who he charged was involved
in the liquor cases. An indictment
against Phillips in a lumber frauds
case is pending in the District of
Columbia
ment of Justice investigator, corrobo-
rated Grier's testimony as to his sep
aration from the department after
the Savannah report was submitted.
Scatfe also charged that some liquor
seized some years ago in Washington,
but which disappeared from storage,
resulting in a grand jury inquiry.
went to the office OF Speaker Gil
lett
Answer Stirs Committee.
Committee members discussed
whether they should let this state
ment stand in the record, and the
witness named CASTOR Is. Means $
one of the informants and declared six
Department of Justice witnesses could
confirm his statement. He denied any
personal knowledge of the trans
action.
The liquor referred to, Scaife sai III,
was seized at the Union Station here
in 1918, 1919 or 1920 and the entire
consignment, valued at $4,000, dis
appeared. 4 grand jury investigated
il, he said, but found no ground for
indictments.
According TO reports. some of this
liquor went TO the office of Speaker
Gillett," Scaife said.
DO you know that" demanded
Senator Wheeler, the committee pros
ecutor.
scaife said not, and Wheeler in
structed him to "confine yourself TO
we don't want this evidence if it is
400 per cent gossip" Senator Wheeler
said.
You'll find it is 100 per cent true
said Scaife.
The witness insisted that some
statement from Mr.. Gillett on the
subject was printed in the newspa-
pers at the time.
Senator Wheeler switched the in
quiry to the impeachment proceedings
against Attorney General Daugherty
in 1922. Scaife said he assisted Rep
resentative Woodruff, Republican.
Michigan, in support of the impeach-
ment charges and that Means then
a department of Justice agent. was
ordered to shadow u.s." He identified
a paper which Senator Wheeler show
ed him, and said that Means told me
ne took this paper from Representa-
tive Woodruff's office"
Brings I'm River Issue.
George H. Maxwell, director Of the
National Reclamation Association, was
called before the committee today to ex-
plain statements made by him in letter
to Senator Ashurst, Democrat, Arizona.
charging "Fall-Dayis scheme to steal
the Colorado River"
The witness was heard at a hastily as
sembied meeting of the committee,
which previously had announced II
would stand in recess until next week
his letter to Senator Ashurst had said
the committee was ION the trail of the
serpent and that a similar opportunity
10 get at the facts as to who was trying
TO steal the Colorado River from Arizona
might not come again in a thousand
years.
Senator Jones, Republican. Washing
ton, objected to taking up the Colorado
Chairman Brookhart agreed unless he
connects it with the Department of Jus
uce in some way"
Maxwell then said the letter was sent
under a "misapprehension," as the com
mittee he had in mind was the reclama
tion committee" He admitted that he
had no personal information as to the
Department of Justice. He was excused.
kerns and Seattle Recalled
Cecil H kerns, an Ohio drug com
pany operator, now out on parole
from Atlanta penitentiary after con-
viction on bootlegging charges, was
recalled to the stand. He said De-
partment of Justice officials told him
yesterday that Federal Judge Killits
in Ohio had reported unfavorably"
upon his parole and had started
move to have him returned for con.
finement.
George H. Chamberlain, attorney
for HI. M. Daugherty, got the witness
to agree that Judge Killits' hostility
was mo different than when l was
on trial; but only stronger"
For the fourth time II. L. Scaife,
FORMER investigator of war frauds for
the Department of Justice, was re-
called
A grand jury in the District of
Columbia on November II, 1922, Seattle
SAID, reported tndL evidence of COM
spiracy to violate law had beer
found in the sale of the Rosch-Mag.
neto Company by the alien propertr
custodian, but that the overt acta
was committed outside the jury:x
jurisdiction.
An audit of the magnetic company's
affairs, made by w. H Barry. ac.
countant for the air service was read
by Scaife, who then switched to an
account of rum running on the At.
lantic coast" He said his informa.
tion was based on a report by Clark
Grier, special agent of the Depart
ment of Justice, regarding the "Sa-
vannah whisky case" and filed Feb
ruary rs, 1922.
Seventy-eight Later Convicted.
"The men concerned were the same
bunch that defrauded the air service"
said the witness.
Grier himself was called and re-
cited the evidence he had collected
and reported to the department He
said it showed graft" payments to
federal prohibition agents in Savan-
nah. He was ordered back to Sa-
vannah by CASTOR B. Means to "get
more facts" he said, then was re-
called to be told by William ]. Burns
that he was mo longer wanted"
Nothing else was done on the case
until President Coolidge came into
office" Grier said, adding that ulti-.
mately there were seventy-eight con-
yictions.