The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-19
Continued from First Page.)

ters under investigation in the Al
bany district"
Burns himself will be called be-
fore the committee tomorrow. The
committee has a number of tele.
grams be sent to Gus T. Jones, San
Antonio agent, in code, and desires
to question Burns about them.
Stewart was the first witness
called this morning, and Paul How
land, attorney 70" Daugherty, began
cross.examining him on his allega.
tons OF yesterday that Daugherty
had declined to prosecute land fraud
and lottery cases in Texas and else
where.
Stewart was questioned on the
charges he made yesterday that the
United Home Builders was conduct
ig a lottery" in violation of the
law
"They claim to be home builders
and that's a misnomer," asked How.
land.
Eyes"
Their appeal is that they will
build homes?'
Eyes, and that you can borrow
money from them at low inter.
est"
Lists ID. G. Company.
Stewart named F. E Whitehead,
l.. F. Harris and the Standard Home
Company, of Birmingham, Ala, as
another OF these swindling crowds.
They were indicted" he said, "in
1915 on charge Of using the mails
to defraud."
Howland's efforts were to show
the Department Of Justice had
prosecuted alleged land swindlers
all over the country. He called at
tention to indictments returned in
Indianapolis, Toledo, Ohio and Pitts
burgh
did you ever hear Of the United
Home Builders?"
Eyes, they hold forth at 1912 G
street, right here in Washington,
and they're still doing business.
They are peddling their contracts
right now in this city"
Cites Curious Delays.
Counsel for Daugherty questioned
Stewart at length regarding indict-
ments OF individuals and companies
in the housing business, which
Stewart had investigated.
Counsel explained that he was
trying to show that Daugherty's de.
partment had been busiIy bringing
these firms to justice on charges of
using the mails fraudulently.
Here's how they work." Stewart
| exclaimed. down in Texas the State
attorney general was asked for an
opinion as to whether these gangs
were legal or illegal. and that opin
ion was held for one year in his
| office before he sent 1t across the
hall to the State insurance commits
| sioner.
''In that year the people in Texas
were swindled out Of millions OF
| dollars by the sixteen gangs OF
| swindlers operating down there
| Something always seems to delay
prosecution. They are very power
full"
Stewart said his only complaint
against the Department of Justice
| was that mo effort was made tC
prosecute these firms and swindlers
under the lottery laws
MANY suits were filed on charges
of using the ma Is to defraud III
that only got individuals and it was
difficult to prove cases ~ II
Them Stewart said. These con
tracts they offered were prima
facie evidence of lottery. and il
would be easy to wipe them all out
Of business by filing lottery suits
against them. My interest is only
to keep the people from damning
the Government. These people who
are swlndled blame the Government
and these frauds are making bad
citizens out of good people,"
Steward said his activities were
inspired largely by patriotic mo.
tives in that he didn't wish to see
hordes of swindled investors. damn
and cuss the Government" He was
then excused.