Evening star., 1924-03-21
Daugherty Committee Is Told
Money Was Split Six Ways.
Says Smith Got Part of
New York Fund.
SIS CASE WAS PAYMENT
FOR FEDERAL PERMITS
Assistant q. S. Attorney Also Ac-
cused as Sharing in Fund -Tele-
grams to Miss Stinson Read Into
Record-More $1,000 Bills Men
toned at Hearing.


Unfolding a new maze of startling
charges having to do with illicit
Withdrawals of whisky in 1921, and
which involved payments aggregat-
ing 100000, John Goroni, president
Of the Alps Drug Company of New
York, today told the Daugherty in
vestigating committee that the
money was split" six ways. -.
In brief, this was Goronrs story:
Way Money Was Split.
Fifteen dollars a case was paid for
permits to withdraw the whisky. The
fifteen dollars. Goroni said. was
split this way:
Four dollars a case to the pro-
hibition director. Gin 1919
Two dollars a case to Howard H.
Warrington, one of Attorney Cen
eral Daugherty's friends, who had an
Office in the little green house on K
street.
One dollar to the druggist in whose
name the whisky was withdrawn.
One dollar to himself (GorinD.
Fifty cents to Assistant United
States Attorney LEsperance at New
York.
Says Smith Got Part.
Six dollars and half to Will A.
Orr and owen Murphy.
ManningtoN had to split his So
three ways, Gorini said Orr told
him, and that some of it went to the
late Jess w. Smith, Attorney General
Daugherty's bumper and friend"
The detailed part of Goroni's
story did not come until after he
had left the witness chair, after a
three-hour examination. and had stop
ped to talk with Castor B. Means,
one OF the former star witnesses of~the
investigation.
Returning to the witness chair,
Goroni said Means had reminded him
he had not told how the money was
split. He hadn't told. 1t before, Co
roni told the committee, because he
hadn't been asked,
Broker In witness.
Previous to Goroni's appearance on
the stand William r. A. Hays, man
ager of the Columbus branch of Sam
uel Ungerleider & Company, was
called and examined regarding Miss
Stinsons previous s.ssiI testimony Of
blind accounts OF William X. A.
Hays, Nos. and 5.
He testified that on Jess Smiths
death the money was turned over to
NAL Daugherty as executor of Smiths
estate. thereby losing its character as
Miss StinsonS money.
Goroni, who identified himself as pres
ident of the Alps Drug Company Of New
York was called after Hays had COM
pleted his testimony.
Ever had dealings with w. A.
ORR"
How did you happen to have this
transaction?" Wheeler asked. ~
"Orr knew I had a permit to do
business in liquor and he sent Paul
Lundy to me-"
Tells of Theatrical Man.
'who is Lundy?"
"A theatrical agent-he told me if
] wanted to do business I should see
Bill Orr"
The date was May, 1921, the witness
said. the place was New York city.
Ibid Orr tell you you would have to
do business with him?"
Eyes, the prohibition director turn
ed down my application for 500 cases.
Orr said he could fix it for me with
his partner, Owen B. Murphy"
HE said he had influence in Wash
ington with Warrington and Jess
Smith, and I would be protected
He did not meet Daugherty," Goroni
put in.
"I met Jess Smith at the Astor Hotel
with Bill Orr" Goroni went on. HE
was just introduced to me-" He was
told, Goroni went on, by Orr, that
Smith was friend Of the Attorney
General
Did they tell you Smith was the
man who could fix them?"
'.They said he could help lot. How
ard Mannington, Orr said, was getting
50 a case for every case that went
through"
In aColumbus Crowd"
"Who did they say Howard Manning
ton was?" asked Senator Wheeler.
'1They said he belonged to the crowd
We'll. you were willing to work
with them?" Senator Jones, repub-
lican, Washington, put in.
Il wish 1 had broken my arm be-
fore I signed up with them." Goroni
responded.
day before?" asked Senator Wheeler.
Yes, by Hart, the prohibition di-
"You were indicted, but not con-
Nicted"
eS.
Goroni said he came to Washing
ton when 1000 cases of Scotch were
seized. %.
"Who did you see?"
Thomas Fielder" -s''
where did he go?"
HE told me to 60 home-it would
be all rigEt-he would get the liquor
sooner or later" Goroni made several
more trips after the seizure.
did you pay money to ORR"
"Once-$5O,000."
"How didsyou pay it?" +,
s Collected for OtheF1.
f.I collected for him from another
party-it was in fifty one e-thousand-dol-
lar bills" i4
"where did you get it,"
From John Lynn"
rWho was he?"
"He was in liquor-he hanged him
self"
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