Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-20
DAUGHERTY PROBE:
COMMITTEE SEEKS
MORE REMUS DATA
WASHINGTON, May Is

w Al Sill j Nj ION, May 10. - Ala
from the department of justice in get
ting more of the story of George
Remus about about payments for
protection" while operating in the
bootleg industry ,Jas sought Satur-
day by the senate Daugherty com
mittee.
At the same time, in a heated open
session, the committee strOVe to find
why one of the witnesses, dong held
in reserve in it's inquiry, lately has
been made the object of a federal
prosecution and learned, incidental
ly. that the departments bureau of
Investigation is being extensively re-
organized by Attorney General Stone,
since w. j. Burns, it's former chief,
resigned last week.
Senator Wheeler the committee
prosecuto: introduced in the session
the theory that the 500, 900 paid for
mer Secretary Fall by f. L. Doheny
was intended to finance Mexican
revolutionary activities, but the sug
gestion was not followed up, nor sup
ported by testimony
Remus. now in Atlanta peniten
tiary, told Friday of paying $250,000
o. r1ore to Jess w. Smith, dead COM
paniOn of former Attorney General
Daugherty, for protection" and of
fered to go personally and bring can
celle3 checks from a secret, seclud
ed spot" if the committe would ar
range it. Mrs Mabel Walker Willie
brandt assistant attorney general in
charge of prohibition enforcement,
notified Chairman Brookhart by let
ter today that a court writ would be
necessary and Senator Brookhart
announced that the department had
agreed to seek the proper legal au
thOrizatiOn.
Controversy on Taxes
According to the committee mem
bers Remus also had a controversy
with the bureau of internal revenue,
as to income tax payments upon the
tremendous quantities of liquor sold
out of Ohio and other places prior to
his conviction.
Warren w. Grimes, a special as
sistant to the attorney general, and
j. E, Hoover, acting head of the bu-
reau of investigation, were the only
two witnesses called in the opening
session.
Senator Wheeler asked Grimes
why an indictment had been asked in
California against Fred Gershon, a
former special agent, who was ex-
pected 20 tell the committee some
thing about the revolution in Lower
California attempted by Estaban
Cantu
Grimes admitted that he had writ
ten a letter signed by Burns, which
suggested to the departments agent
IN Los Angeles that Gershon was
posing as a moral unplifter and
house cleaner" of the government
service, but might be shown to have
taken bride money for letting NUM-
lions pass the American border in
violation of neutrality laws.
The letter bore a recent date, and |
Senator Wheeler declared the action
was instituted to 'intimidate" Gem |
mittee witnesses, but Senator Moses, |
New Hampshire, protest |
ed that Grimes should not be con-
fronted with imputations against his
motive
Asked as to the use of the Dohney |
payment to Fall Grimes denied any |
knowledge of its relation to the |
Lower California affair. The Cantd |
rebellion took place in 1924.
Under Cover Men Out
Hoover, although not informed of |
the proceeding against GershOn, told /
the committee that Attorney Gen
eral Stone had instructed him to
reduce the personnel of the Bureau
of Investigation materially. Its
agents were instructed to institute
no new inquiries without the APP
prevail of the attorney general, and |
hereafter it's employees are to be law
school graduates only. The number
of "under cover men" is also to be
sharply.
MrsA WITHDRAWALS ruling regard
ing the proposal to permit Remus
go to Ohio and other middle western
states under guard to look for can
celled checks and other papers re-
S.I cd from Lna.LInSt la.a ~ ~. |