The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-16
HUGE SUMS
SPLIT,HE
SAYS
tcont.nuea from First Page)

Wontanued from FtrSc FAgeJ
two persons would talk, the third
gracefully withdrawing.
Remus said he also met Jesse
smith at the Claypool Hotel in
Indianapolis and at the DeSchler
Hotel in Columbus.
what did Jesse Smith tell you
when you asked his help to get
Mquor withdrawal pernitS?" asked
Wheeler.
"FIe knew that I was a dealer
On q large scale and ! wanted his
Influence" said Remus. ''Smith
understood that. i wanted his help
20 protect me IL something went
wrong az well. an to set the with.
drawal permits"
what were you told about
Smiths connection-about whether
he was close to Mr.. Daugherty?"
That he was very close to
: Daugherty."
What did he say about any In
dictments?"
HE said there would not be any
convictions. but there might be
prosecutions. was never to 90
TO jail, but did co."
Paid for Protection.
what did you pay himP"
II think it was $4,000 the first
time" said Remus.
What was the aggregate?''
Il can't state exactly, but 1t was
between $200, 900 and $3.50, 000."
That money was paid to Jesse
Smith for protection?"
yes, and for withdrawal per.
Remus said he had paid Smith
by cash checks in some instances.
He offered to produce the checks
later
'In the aggregate. 1 paid out in
cash checks $1,000, 000," Remus
added. That was for payments to
everybody in. connection with my
distiileries and for the plants as
WELL
Remus testified he paid $40 a case
for the liquor withdrawal permits
he got through Smith.
In addition, Remus said he paid
about $3.50 a case for delivery.
Lewiston Of Payments
"Of the money paid on each case
OF liquor for protection, how much
did Jesse Smith get?" Wheeler
asked.
"A dollar and a half to two
dollars and a half according to the
number of cases a consumer got, /"
Remus said.
who did Smith say he divided
this money within" asked Senator
Brookhart RepD of Iowa.
There was no talk between US
about the division of the money
paid him. said Remus. \
but there must have been or
how did you know Smith got $3.50
. case for himself?" asked Senator
Moses Rep) of New Hampshire.
THAT was the money for de-
livery" Remus replied. "It was in
addition to the $1S a case I had to
pay for the permits"
Remus declared his permits were
signed by Prohibition Directors
Hart, Of New York, and McC onnell,
Of Pennsylvania.
Permits Legal, He Says
'"rhey wre legally issued permits, +"
0Aid Remus. What can't under
stand is that I should be convicted
when both Hart and Mcconnell, who
issued the permits, got Off"
Remus charged the directors had
possibly destroyed the records in
their offices after issuing these per-
Snits."
THE permits were lawful" he in.
"They were issued for a fraudu.
isn't purpose, weren't theyT'
That's d bad word" was his re.
How was the protection money
paid?" asked Senator Brookhart
always in cash."
what size bills were there in
your first payment Of $4,000 to
II recall that, first payment co
Smith distinctly" said Remus. IL
paid him fifty $1,000 bills I"
Names Alleged Collector.
A. Melville Sternfeld in New
York did the collecting in New
York for permits, Remus said.
Remus said 100000 or 100000
gallons Of liquor were released from
his institutions" on the fraudulent
permits.
"You paid Jesse Smith $3.50 a
case on all that liquor?"
eyes"
where did you make your sec.
ond payment to Jesse Smithv"
Wheeler asked.
II met him in the Claypool Hotel
In Indianapolis.
THAT was about the time the At
torney General dismissed the
anthracite cases at 1ndianapolis?"
II believe So" said Remus.
assistant Attorney General Guy