The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-17
SPLIT N. Y.
CRAFT WITH
JESS SMITH
Means Tells Story to
Daugherty Committee

WASHINGTON, April TO-.
Jess Smith "split" 100000 OBJ
tanned from New York bootleg
gers for whisky permits with
former Attorney General
Daugherty, CASTOR 3. Means.
former department of iustioe
agent, today told the Senate
Daugherty investigating conls
mittee that Smith had informed
him.
The bootleggers were de-
manding return of the money,
Means said and Smith told him
that he could not return it be-
cause he had split it with
Daugherty.
Everybody Knew It.
Everybody knew that Jess Smith
and Warrington were splitting with
the attorney-general on liquor with
drawals. Everybody knew that Jess
Smith and Warrington were working
with Daugherty to get whisky per-
mits," Means said.
Means said he had turned over be-
tween 100000 and s225,00O to Smith
in all at various times.
Secretary of the Treasury Mellon
entered into an agreement with man
named Shelton to get permits for
"the Green River Whisky people,,
Means charged.
Means was put on the stand after
the committee completed examina-
ton of George w. Storck, department
Of justice accountant, who testified
about alleged Irregularities in sales Of
seized German property by the alien
property custodian both in this coun-
try and in the Philippines.
BIackmaiI, Not Indictments.
Means said Jesse Smith told him
that "they" were not going to indict
former Attorney General A. Mitchell
Palmer and Francis j. Garvan, alien
property custodian, for their action in
selling the Bosch Magnetic Company
properties, but intended to blackmail
them ito force them to do the things
they wanted to control democratic
votes in congress-"
Means also said that William J.
Burns had told him that he had adj
vised Daugherty not to try to indict
Senator Wheeler, of Montana, tho
Daugherty gave out statement say
ing that he knew nothing about the
indictment before it was returned.
Storck Tells of Irregularities.
Alleged irregularities in the sale Of
German property seized in the Philip
pines during the war by the alien
property custodian were related to
the senate Daugherty committee to-
day by George w. Storck, department
Of justice accountant.
Seized property was sold at ridicu-
lous low prices, some times to re-
ceivers appointed by the custodian to
administer them, Storck said. On
one occasion President Wilson inter-
vened to set aside a sale in which
Francis Burton Harrison. then gov
ernor-general of the Philippine Is
/ lduuos dClcu dS agent, DbOACh ltoliicus
Storck said that despite his repeat
ed reports to the justice department
no attention was paid to the alleged
irregularities and no prosecutions
have ever been brought.
Charges that the private secretary
of Governor Harrison proposed TO
German prisoners informed in the
islands that they could be released
If they would agree to sell their
property were also made by Storck.
No Prosecutions Started.
Storck testihes that Kern paid
Joseph F. Guffey Of Pittsburgh, for
mer democratic national committees
man, $4,000 in 1920 with the under
standing that this was TO aid in the
withdrawal of liquor from bonded
warehouses. He said his investigation
showed that the deal fell thru because
''the change of policy" of the prohi-
bition officials.
Stork in answer to questions by Sc
nator Wheeler, said that his records
of investigation of the Bosch case
CONTINUED on PAGE Two.)