New Britain herald., 1924-03-21
Daugherty Investigation Discloses Payments In Thousand Dollar Bills For Whiskey With drawals - Five Big Drug Companies Paid Vast Sums In Cash.
 

Washington, March 2l.-More coi- lections of si.000 bills were unearth- ed today in testimony before the Daugherty investigating committee.
 This time they were for illicit with drawals of whistey from federal ware- houses.
 Paid Ss00,0O0 in Graft
 John Goroni, president of the Alps Drug company of New York testified that after being refused withdrawals by Prohibition Commissioner Hart, he had paid Owen Murphy partner Of Will A. Orr, sl50,000 and Orr himself s5O,000. for withdrawal permits. Orr, Goroni testified, was selling withdraw- al permits for sl5 case. and he un- derstood Howard Mannington, a friend of the attorney generals, who had desk in the little green house on K street." got two dollars a case for his part,
 Fifty thousand dollars in one thous- and dollar bills, Goroni testified, was collected from other parties. among them a liquor dealer named John Lynn who later hanged himself.
 How much of this s200.00O was for liquor2' Goroni was asked.
 Just Tor the Permits
 No liquor at all" he replied. that was just for the permits"
 The transactions were between May and August. 1921. Goroni said, and for signing the withdrawal applica- tions, the drug companies got a fee of sl a case.
 After the drug companies got the permits, anybody could get the liquor. The fee Of si ease was for the use of drug companies names. he said, to get the permits into hands of boot leggers.
 "who dId they say Howard hsn- nington was2"
 '@rhcv said he belonged To tie crowd foin Columbus"
 Goroni said he came to Washington when 1000 cases of Scotch were seized.
 Whom did you seer"
 Was Promised Liquor
 Thomas E. Fielder. He told me to go home--it would be all right--he would get the liquor sooner or later"
 plu sou PaN tnpiits AO 'lN
 "once-s50.000.
 How did you pay its"
 "I collected for him from another party-it was in 50 si.ooo bills"
 Where did you get it?"
 From John Lynn
 "Who was her"
 "lie was in liquor-he hanged him- self"
 What did you get the sso.000 for7'
 "lt was balance that Lynn owed 10 orr and Murphy on liquor with drawals."
 Five Drug Companies
 "I was running the business for five drug companies" Goroni said. He named the Central the S. and E. Drug company. the Alps. and others. Was this s50.o00 paid to nx things ."
 "Orr was selling the permits for ,l5 per case and each Of my drug was getting si case back from Orr"
 "Did you pay any more 2"
 'aro Murphy paid about si5o.00o." That was for influence?'
 Sf5O.O00 For Withdrawals I'll was TOT lhese WiinufdWdt pa- Ders."
 When was it?' , prom May to about August. 1921" "In those three months you paid Orr and Murphy s200.00o?"
 "Yps"
 That was for liquor?"
 No for the permits" !"
 And you were not able to get any permits without that 2"
 NO.
 How much whiskcy in case 2" Isked Senator Broolshart.
 The room rocked with laughter. The answer was inaudible. Goroni was led on with his explan- .tion.
 "This s15O.000 you paid was boot eggers' moneyg" Senator Jones asked. "Yes sir
 Now. the s2oo.oeo 10 Orr and iurphy. it was for these pcrmits7" ''Yes sir"
 You were paid back some money rom Feider's offices?"
 some Got a Rebate Not me- some people were in- istesi that Orr give ii burk to me" .'Ifid yon meet Manninr1ong "Yes-in Murpht's office in New fork
 And they told you he was ;he ai- orney generals friendT ..They didn't specify the attorney enerai It was The Columbus rowd''
 ..Nhat did they say as 10 smithg" That he was in the attorney gem raTs office"
 Didn't you offer 10 turn states videuceg~ tThis referred 10 Cor nis trial in New York with Orr for onspiracy on liquor charges. Both ere acquitted.l Goroni answered that he hadn't. '.Did what you tell today come out Iens"
 NO. the district attorney and the robiBition director claimed the per- its were stolen" Did Howard Mannington turn back