New Britain herald., 1924-05-16
George Remus Tells Daugherty Probers of Giving Money To Jess W. Smith Defended By Atty. Generals Assistant.
Also Declares He Paid From Sl.50 to S2.50 Per Case for Permits to Take Whiskey From Distilleries.
MEDICINAL WHISkEY
 A FARCE, HE STATES

Washington, May l6.-Georgs Remus, millionaire bootlegger, now in the Atlanta penitentiary, testified today before the senate Daugherty committee that he paid between S250,000 and i S3OO,OO0 to Jess w. Smith for protection. He also declared that James M. Linton, whom he described as "a special assistant to the at- torney general" helped to de fend" him, and was paid about s9,OOO. He added that Linton refused, however, to "ask fa- vors or consideration" from the department of justice.
 Also Bought Permits
 To smith. he said, he also psi1 from si,50 10 ss.50 per case for per- mits allowing him to take whiskev from string of distillaries he had purchased just before prohibition went into cct. Az. to what Smith
 d with the money and whether if as split" with others Remus said he ne'er inquired.
 Met smith in 1921
 The witness said he was introduced to smith in 1921 in New York city.
 What was the occasion Of your meeting smith1" asked Senator Wheeler, the committee prosecutor.
 From the viewpoint of obtaining withdrawals of liquor from bonded warehouses for my drug companies" Remns replied 'It is my remem- brance it was at tee Commodore ho- tel. We discussed with him the per nits for withdrawals for the Alps Drug company. the Central Drug company of New York, and others"
 The demand for liquor was greater than the supply" Remus went on. E. M. Zoline. a law partner of Thomas Elder. was counsel for ltemus. and brought smith and th. liquor man together. Tn conyersa. tions with smith. he explained, in. third party would gracefully with draw"
 The witness went rapidly over . series or meetings with smith.
 Smith had heard of me as e req. sonably large whiskey operator" Re- mus said That vas the reason for him."
 s50.o0o First Payment
 What was told sou as to smiths asked senator Wheeler.
 He vas very close to the attorney Remus went on. He agreed that for a consideration of so much per case, he could get the permits. There would never be any prosecu- iions.'
 What did you pay him hrst7"
 'I think it was s5O.O0o."
 What was the aggregate 9'
 "l cant remember exactly"
 You've got some chccks9"
 'Nss. in secluded spot. but they amount to about sf .S00. .060."
 Did you give him thate"
 Not all that, some of that pa. for iistillerics"
 How much did you pay Jess smith n the sggregate?"
 "Oh. about s25o. ooo or sS0O. .ooo." That vas for protection7"
 "Yes and for permits for services in liquor. about the various ustitutions tn which vas con- 5erned."
 Remus was asked to explain the necessity for the payments He told if the permits for taking whiskey rom distillcries 10 drug concerns. There uas ar understanding that 'mith was also 10 receive from si.s0 o ss.50 per case on each lot of whi.- ley that was handled through the iemus distribution system.
 Hart Was Diretor
 Melville Stsrnberger." collected the 'ermit payments In New York. and Judge Hart" was prohibition director v the time the permits sers issued, he witness said.
 ''Hos did you pay money" Chair nan Brookhart asked
 Tn cash aiwsys-sometims in sf,- ee or $500 bills"
 'This first s5o.o0o to Jess smith. os was that."
 Tn sI.000 bills"
 Was that the largest amount you ave him at one time7"
 Yes"
 "wltat was the dategs asked senz- gf Wheeler.
 Tn June. July or August. Isz1."
 Protected IS Months You were protected in distributing hs liquor. how tong7" put in Chair nan Brookhart.
 For a year and half" What amount of liquor did you