The Holly chieftain., 1924-03-13
NEWS REVIEW OF
CURRENT EVENTS
Sensational Evidence Heard
by the Daugherty Investi-
CATION Committee.
BY EDWARD W. plckARo

LARRY DAUGiERTY, still at-
- torney general of the United
States despite the predictions of Wash.
ngton's expert guessers, is now under
going formal Investigation MS to his
official conduct by the senate commit
tee appointed for that purpose. I}rook
mart or Iowa Is the chairman md
Wheeler OF Montana the prosecutor"
while Daugherty is represented by for
mer Senator Chamberlain and Paul
Howlund
Miss Roxie Stinson. divorced wife
of Jesse Smith, the attorney generals
confidential aid who committed sui.
eide last May, was the first witness.
and she gave lot Of sensational test-
mony which Involved Daugherty in
many questionable transactions. Miss
Stinson said Smith. after their divorce,
supported her and conf,ded in her con
stantly. Among the important state.
ments she made on the first day of
the hearing were:
That Smith told her that "we,"
meaning. she insists. Smith, Daugh-
erty and perhaps others, were involved
In deal to sell rights to exhibit
Dempsey Carpenter fight pictures,
which Smith expected TO yield q profit
OF SiS00O0. The transportation OF fight
pictures In Interstate commerce is for
b!aden by law.
That Smith and Daugherty came
INTO possession of u considerable
amount of White Motor Car company
stock certificates In blank, twenty-five
shares OF which she sold quickly and
quietly" on Instructions from Smith,
and that Smith told her the stock cost
"us" nothing.
That Smith and Daugherty came
Into the possession of shares of Pure
OIL company stock, which Saith like
wise said cost ''us" nothing.
That Smith had two "bllnd" stock
brokerage accounts In the firm OF Sam
nel Ungerleider & Co. at Columbus,
through which he did considerable
speculation.
2 THAT once when she Urged Smith
to stop specuIating because he was
losing money, he told her he had Just
deposited $lT5OOO Of "enstern money"
In the bank of Nal Dnugherty, brother
of the attorney general, in Washing
ton Courthouse, to protect his
(Smith's) losses.
That Smith told her about n myste-
rious green house" in X street, near
the Department of Justice, where
"they" met to discuss their deuls.
That Daugherty and Smith were In
separable In all these transactions and
that Smith never acted without the
full knowledge and authority of the
attorney general.
That Smith disliked the life or In
trigue he led in Washington, but said
he would stick 1t out, because OF his
friendship for paughcrty and that,
prior to his snlcide, he lived In con
stant fear of being closed down
upon"
Secretary MELONS name was brought
into the Daugherty Investigation by
CASTOR h. Means, former Department
of Justice agent, who said that for
President Harding he Investigated mat
tiers connected with certain permits
having to do with violations of the
Nolstcad act.
~ gave Captain Scnife thousands OF
dollars to catch him" (Mellon), Means
testified. Scaife was formerly De
pnrtment of Justice Investigator whc
was active In pressing for investigation
of air craft scandals.
Also at President Harding's request
Means testified, he Investigated Sen
ntor Caraway, and also Senator LaFol
Iette after the latter had been agitat
ing investigation of the Teapot Dome
scandal.
Means testified that In February
1922, in the old Bellevue hotel IN
Washington he received from n JaI
representing Mltsui and Company
100000 to stop government prosecu
ton in the Standard Aircraft east
md that he turned the money over
to the late Jess Smith. Attorney Gen
cral Daugherty's bumper and friend