The Birmingham age-herald., 1924-04-17
DAUGHERTY GOT SHARE, SAYS MEANS Whisky Gang Knew That Daugherty Got His
 Share, He Says PALMER DRAGGED
 INTO THE MIRE Alien Property Deals Held Over His Head, Wit ness Ayers STONE ALLOWS
 USE OF RECORDS llyN7.s f 4 rr zt President Wilson Acted To Can- eel Philippine Frauds, Ac-
 countant Declares
PALMER DRAGGED
 INTO THE MIRE
STONE ALLOWS X USE OF RECORDS

sociated Press 1.-Two former attorneys general of the United States, A. Mitchell Palmer and Harry M. Daugherty. and one former governor general of the Philippines, Francis Burton Harrison, were accused of serious and personal wrongdoing during rapidly shifting tes- timony today before the Senate Dangh- erty Investigating committee.
 Only two witnesses were heard, one Gaston B. Means, investigator long ac- tive in international and domestic af- fairs. and the other George W. Storck, accountant for the department of jus tice, but they made repeated accusa- tions of monetary misconduct and later of default in department of justice prosecutions,
 Means took bis account of btibe-tak- ing straight to the. door of Mir. Daugh- erty by repeating statements he as cribed to Jess W. smith, late com panion of the former Attorney Gen eral. He also confirmed and extended impressions left by Storek, whose testi- niony was prolonged report of the in- yestigation made by himself upon the orders of John ". H. Grim, former assistant attorney general, into tie con duet of the alien property office.
 Scared 10 Death
 In the brisk play of question and an swer. Means described Mir. Palmer as docking scared to death" coming out of Mir. gDaugherty1s office after charges against his administration of alien prop erty had been pushed to the point of the mention of indictment. One mo nlent the committee devoted to Howard Manington of Ohio, when it's prosecutor, Senator Wheeler, democrat, Montana, demanded the production of. this wit ness by Mir Daughertgls counsel in spite ef his own refusal to Qpiiears
 He demanded likewise to know whether it was true that indictments had been returned in New York against Wilmington and Jess Smith for liquor permit transactions, but "hushed up.v He was advised by George A. Chamber lain of Mir. Daugherty's counsel, to ap- ply to the district attorney for this in- formation.
 Two other issues arose, one in the hearing, when Means quoted William J. Burns, chief of the bureau of investi- gation of the department of justice, as advising Mr. Daugherty against press ing the Montana indictment against Senator Wheeler. The other developed 4 after the hearing when the Western 2 Union Telegraph company, by letter to z the committee, confirmed it's previous H verbal refusal to give the committee any more telegrams exchanged between ! principals in the Senate investigation.
 By Stones Permission
 Storck's reports, given .by permis- sion of the new Attorney General" he * explained, went foremost to the seizure 2 of alien property in the Philippines dur " ing the war by Governor General Har- rison, acting as agent for Mir, Palmer, then in charge of the alien property of flee. Although records he examined at Mir. Crim's instance were ''in chaotic state, and culled over" Storck said he 2 had recommended the bringing of crim- inal prosecutions against scores of in dividuals concerned in the seizure, ad- ministration and sale of some 13 German concerns in the Philippines, many of E them involving large amounts of money.
 A clique. headed by Philippine ma tional bank. he charged, consisting of the trustees appointed to serve the properties in most cases sby fixed up sales" obtained personal posSession of the enterprises even after President Wilson, by executive order, had cam celled some of their arrangements.
 Germans Were Forced
 German owners, the witness declared. were forced to 'sign on the dotted line" agreements not to resist the sales if they wanted to be released from in terment camps and receive back any of their money. Mir. Grim he represented as being '.blocked" in attempts to pro- ceed beyond the stage of investigation and he himself as being called off"
 Senator Wheeler asked Storck if he knew Jess Smiths intervention in the investigation and then recalled Means to the stand. Means, sketching his own relationship with Smith and Daugherty, said he had been told by the latter to report to Smith, and by Smith to fre- frain from telling some things to Burns, who was Means chief.
 Many times, Means said, Smith talked over" alien property matters with him. Smith, he declared, took in somewhere between $225, 900 and $250,- GOO part of it, being payments from New Workers who obtained permits to take whisky out of bonded warehouses.
 Daugherty Had Shared
 When return of some of this money was demanded from Smith when, per- mits failed to be issued. Mems asserted, Smith told him it could not be paid DdCh DClG4DC EAAs A0u1AASkNg AeSA oAauANA in receipt of the sums.
 Everybody in the whisky ring" the witness asserted, citing Will Orr, Tom Fielder and John Gorini, knew that Howard Warrington and Jess Smith rep resented Mir. Daugherty in their trans actions.n
 Turning to alien property matters, Means positively asserted that A. Mitchell Palmer and Francis A. Garyin, who in turn directed the alien prop erty office. were to be indicted because of their connection with the Bosch Mag neto company seizure and sale. Jess Smith told him, however, the witness added, that the indictments were not to be- sought because they would be held o blackmail Palmer" and to sway his political influence with congressional democrats. He also dipped momentarily into an account of being directed by the department of justice to trail tariff pommission experts during consideration
 f the tariff bill in Congress in 1922