Evening star., 1924-04-29
STONE BACKS SENATE
IN DAUGHERTY CASE
Attorney General Will Assist Eff
fort to Punish Ohio Banker
for Alleged Contempt.
DRY ACT PARDONs ATTACKED
Chlcagoan Given One Year Never
Served Time, Is Charge.

Chicagoan Given One Year Never
Served Time, Is Charge.
Attorney General Stone has agreed
10 have the Department Of Justice aid
the Senate Daugherty investigating
committee in litigation arising from
the attempt to punish NJ. S. Daugherty
brother to the former Attorney General.
for his refusal to testify.
The arrangement is understood to
have been effected after several con-
ferences between committee members
and officials of the Justice Depart
ment. Soon after he took office Mr..
Stone indicated that he was willing
TO cooperate in every practical way
toward disclosure of the full facts as
to the questions under investigation.
Arrested in Cincinnati.
NJ. S. Daugherty, who ignored two
committee subpoenas and also failed
to produce the records of his Midland
National Bank at Washington Court
House. Ohio. was arrested yesterday
in Cincinnati on a warrant issued un-
der Il Senate resolution citing him for
contempt.
He secured his freedom on a habeas
corpus writ and is to appear in the
federal court at Cincinnati on May 10.
a Department of Justice attorney
may be present at that hearing to
af l,n iv,4a -F
mittee and of the Senate, but details
are yet to be worked out.
Chairman Brookhart said today
that he sought Mr.. Stones assistance
yesterday, after the federal court at
Cincinnati had acted The Attorney
General and Assistant Attorney Cen
eral Seymour, he said. agreed after
conference to have the department
defend the Senate's right to arrest
and hold the witness.
Bank Refused Inspection.
The Midland Bank has re-
straining order returnable at Wash
ington Court House on May 10, be-
fore a local court, preventing the
committee from going into its books.
The Department of Justice may also
take care of this.
The Western Union Telegraph Com
pany refused to give the committee
kilograms it is seeking. but procedure
against that corporation has not yet
been called to Mr.. stones attention.
Further testimony bearing on the
prohibition enforcement policies of
the Department of Justice under
Harry NJ Daugherty was heard to-
day by the committee.
Release Is Questioned
James A Finch, the department s
pardon attorney, was questioned
about the release of Philip l. Gross
man, sent to Jail by Judge Landis at
Chicago for one year for violating
a court injunction in liquor sales. The
witness agreed that Grossman never
served any time. Attorney General
Brundage of Illinois sent a letter to
the Department of Justice, he said,
recommending executive Clemency.
but in 1928 President Harding re-
fused to consider il until some part
of the sentence had been served.
Finch also named G. W. Middle
kauf. special assistant to the At
torney General: Fred Upham, treas
urer of the Repu ublican national COM
mittec. and Homer X. Galpin, chair
man Of the Republican Cook county
central committee, as having urged
clemency. In December, 1923. Presi-
dent Coolidge commuted the SEN
terCe and meantime GroSsman had
kept up appeals and other legal in
reference which proved adequate tc
prevent his imprisonment Finch
agreed the case was unusual.
Landis to Be Called.
The committee agreed to subpoena
former Judge Lands, now base ball
commissioner He has also been
mentioned in several other branches
OF the committees inquiry.
Senator Wheeler tried to get Finch
to concede that Jess Smith and How
ard Manington were active in urging
pardons. Smith frequently brought
in petitions, Finch said, but Naming
ton did not. The witness was asked
by Senator Wheeler to look up the
files on Lou Frank of Nashville,
Tenn, who pleaded guilty to de-
frauding the government out of
taxes, got a sentence of six months
and never served a day, according to
my information"
w. b. Wooden. attorney for the
Federal Trade Commission, was qJes-
toned about antitrust cases, and
particularly about the conduct of the
Michigan Hardwood Lumber AssocIa-
ton.
Gave Department Case.
The trade commission. Wooden said,
turned over to the Department of
Justice in July, 1920, evidence as to
the typical activities of the associa-
ton in fixing prices" A market
conditions" committee of the asso-
citation was the price list" organiza-
ton, Wooden said, and in January,
1920, its chairman wrote letters which,
he declared, showed price fixing con-
trary to the antitrust law.
The Northern Pine Manufacturers
Association of Minnesota was en-
gagged in similar activities during
1919 and 1920, the witness said and
the Shevlin Carpenter Company of
Minneapolis had characterized the
associations price list as "indefen-
sible" and had refused to String
along"
Data as to the Georgia-Florida Saw
Mill Association and the North Car
olina Pine Association, Wooden said,
likewise went from the trade COM
mission to the Department of Justice,
in 1920 and 1921, as the basis OF con-
templated antitrust prosecutions.
The statute of Limitation had run
in most of the lumber cases now,
Wooden said, and no criminal prose-
cutions could be instituted whatever
facts developed.
The Southern Cypress Associa ton.
In January. 1920, held a meeting at
Wooden continued apd