Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1924-03-20
NEWS REVIEW OF
CURRENT EVENTS
Sensational Evidence Heard
by the Daugherty Investi-
CATION Committee.
By EDWARD w. PIcKARn

BY EDWARD w. PICKARD
AIRY DAUGHERTY, still at
\ torney general of the United
States despite the predictions of Wash
ington's expert guessers, is now under
going formal Investigation as to his
official conduct by the senate commit
tee appointed for that purpose. Brook
hart of Iowa is the chairman and
Wheeler of Montana the prosecutor"
while Daugherty is represented by for
mer Senator Chamberlain and Paul
Rowland.
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 testi-
mony which involved Daugherty in
many questionable transactions. Miss
Stinson said Smith, after their divorce,
supported her and confided in her con
stantly. Among the important state
ments she made on the first day of
the hearing were:
That Smith told her that 1--WE"
meaning, she insists, Smith, Daugh-
erty and perhaps others, were involved
in deal to sell rights to exhibit
Dempsey-C Carpenter fight pictures,
which Smith expected to yield profit
of $1S0,O00 The transportation of fight
pictures in interstate commerce is for
hidden by law.
That Smith and Daugherty came
into possession of 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 Smith like
wise said cost s'us" nothing.
That Smith had two "blind" stock
brokerage accounts in the firm of Sam
uel Ungerleider & Co. at Columbus,
through which he did considerable
speculation.
That once when she urged Smith
to stop specializing because he was
losing money, he told her he had just
deposited $4,000 Of eastern money"
In the bank of Nal Daugherty, brother
of the attorney general, in Washing
ton Courthouse, to protect his
(smith's) losses.
That Smith told her about mystic
rious green house" in X street, near
the Department of Justice, where
''they" met to discuss their deals.
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 of in
trigue he led in Washington, but said
he would stick it out, because of his
friendship for Daugherty and that,
prior to his suicide, he lived in con-
slant fear of 'being closed down
upon"
Secretary Melons name was brought
into the Daugherty investigation by
CASTOR B. 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
Volstead act.
81 gave Captain Seattle thousands of
dollars to catch him. (Mellon), Means
testified. Seattle was formerly De
partment of Justice investigator who
was active in pressing for investigation
of air craft scandals.
Also at President Harding's request,
Means testified, he investigated Sen
ator 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 "a Jap
representing Mitsui and Company
100000 to stop government prosecu-
ton in the Standard Aircraft case
and that ne turned the money over
TO the late Jess Smith, Attorney Gen
eral Daugherty's bumper and friend"