The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-16
DAUGHERTY GANG
SHOWN IN HUGE
BOOZE SCHEME
Investigators Are Told
Sensational Story


WASHINGTON, April ia sensa-
tional story Of gigantic liquor with
drawal plot alleged to have been en-
gineered by Ohio politicians at Wash
ington, was related before the Senate
Daugherty Investigating Committee
today, by Cecil H. Kerns, of Column
bus, paroled federal prisoner.
Kerns named Howard Warrington,
once resident of the Little Green
House on X Street" Ralph Cole, for
mer member Of Congress and Abe
Ungerleider, Columbus broker and
William Haley, as the men who fur
nished the political influence to OBJ
tain withdrawal permits.
Get All Permits Wanted.
Abe Ungerleder told him, Kerns
said, that he had contributed $4,000
to the Republican campaign fund and
that he had an understanding that if
he gave this sum che could get all
the liquor permits he wanted or get
his money back.
Kerns said the alleged liquor deal
was first preached to him by H. S..
Adair president of the Consolidated
Drug Company of Columbus, Ohio.
Adair was interested with William
HALEY, he said
ut has been brought out here that
Jesse Smith was sending kilograms to
Haley" Senator Wheeler interjected.
Il was referred to Abe Ungerleider
about obtaining liquor permits" con-
tinued Kerns.
UngerIeider Gave $4,000.
Ungerleider told him, Kerns said,
that he contributed $4,000 to the Re-
publican campaign fund
He said that he had an under
standing that if he contributed $780,
600 he could get all the liquor per-
mits he wanted or get his money
back" said Kerns.
Kerns said that $4,000 cases of
liquor had been taken from ware
houses in Ohio with the approval of
Prohibition Director Russell of Ohio
II was told that Russell was
bought and paid for" he said.
Kerns said he employed John E.
Todd, former law partner of Harry
M. Daugherty, in 1921, because he had
influence with the attorney genral
He paid Todd $500 month during his
employment. Todd, he said, went to
the Department of Justice and saw
certain high officials" to get infor-
nation he wanted.
Served More Than Year.
The witness said that he was con-
victed Of conspiracy to violate the
prohibition law and sentenced to two
years in Atlanta penitentiary. After
serving year and three weeks he
was released on parole in February,
1924, signed by Daugherty and II. H.
Votaw, superintendent Of federal
prisons.
'Ungerleider told me that he was
in position to get liquor out of bond
and that he had power and influence
at Washington" the witness contin-
ued. The liquor, Kerns said. was to
be handled thru the Aramand Candy
and Drug Company of Cleveland.
Kerns said he sold Ungerleider 500
barrels/of liquor which he had in
bond. The payment for the liquor
was handled thru a man named
Grossburg, who was later indicted,
but escaped to Canada.
"The liquor was to be made avail
able for the bootleg traders in Ohio"
Kerns said.
Permits Cost S17 Per.
The permits for the liquor, he said,
were sold to Ungerleider for S1.15 a
gallon.
William Barnett OF the Consolidate
ed Drug Company informed him,
Kerns said, that he could get liquor
out Of bond. The permits were to
cost ST. case, he said. Howard
Warrington and Ralph Cole were
named by Barnett as his "associates''
in the liquor deal. Kerns said.