San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-30
INVESTIGATION
Of DAUGHERTY'
NOT Numbered
Resignation Has No Effect
on Justice Depart
ment Probe.
HEAR OF DEALS"
Witnesses Say Attorney
General Directly
Involved.

Washington, ID. c.. March 29.-The
Senate committee investigating former
Attorney General Daugherty's conduct
in the Department of Justice went
forward under full head of steam to-
day, undeterred by Daugherty's resig-
nation, and for the first time heard
testimony which the committee be-
lieves directly linked Daugherty's
name with an alleged questionable
"deal.s
? The charge was made before the
committee by Capt. ii. l.. Scaife,
former Department of Justice investi-
gator, Scaife said that Thomas b.
Fielder, New York attorney, former
legal associate of .Daugherty, had told
him that "Daugherty had agreed to
cooperate with us" in the Bosch Mag
neto case.
Fielder at the time, Scaife said, was
representing the Bosch Magnetic COM
pany, whose properties had been
seized by the allen property custodian
when the United States entered the
war and later sold to Martin +. Kearn
of Allentown, Pa, and made the sub
ject of moves for their recovery by the
custodian. The Justice Department,
however, never filed suit.
"Dug Up" Evidence.
Seattle said that he has "dug up"
evidence showing irregularities in the
sale "for a grossly inadequate sum-"
and that Fielder had attempted to buy
him off for $4,000.
Il never knew the details of the
deal because | refused to go into it,"
said Scaife, "but l knew it was plan
to steal $4,00O,000 or $5,0O0,00O from
the government"
When he could get no action on the
case, Seattle said that he went to
Daugherty and told him that the De-
partment of Justice was first aid
to crooks" and threatened to resign
and take the case TO Congress.
He said Daugherty promised action
but never took it. He then resigned
lin disgust" he said.
"Gaston B. Means told me-" Seattle
said, THAT Jesse Smith told him they
were going to "kid me along and never
do anything
The day following his resignation
Seattle said Fielder offered him the
$4,000 retainer to "go nthe other
side" and silence me and the evidence
dug up against him and the Bosch
company.
During the height of Scaife's tes-
timony, Senator Jones. Washington,
announced, "this is the first direct tes-
timony connecting the attorney gem
eral."
Letter Is introduced.
In letter he wrote to Representa-
tive Woodruff in 1922, concerning the
matter. which he produced for the
committee, Scaife said that Fielder
told him that he had also talked with
Col. Guy D. Golf, at the time assist
ant to the attorney general, and that
after the talk Fielder told him that
Everything has been arranged for us
to proceed"
Seattle said that the banking house
of Hornblower 4 Weeks financed the
Bosch Magnetic deal. He was in
formed, he said, that Secretary Weeks
sought an opinion on the sale from
Secretary Hughes, who approved it.
Scaife gave the committee further
details of how he was blocked in his
investigation of the aircraft frauds.
He charged that A. i. Meyers, special
assistant attorney general in charge
of the aircraft cases, was responsible.
Tells OF Jap "Spy" System.
William j. Burns, director of the
bureau of investigation, declared it
was ian outrage to have Meyers in
charge of the cases." Seattle said.
Burns told him to ego after the
crooks" Scaife said.
A japanese spy" system In the
United States, was described by
Scaife. He said that he knew our
"relations with Japan were critical in
1919, but nothing was ever done about
his reports of japanese taking pic
lures of Boston harbor and studying
American artillery methods.
Prior to the appearance Of Scaife,
Nicholas Cimino. New York restaur-
ant proprietor, told of meeting How
ard Warrington. an associate OF
Daugherty, in Washington, while en-
deavoring to have Phillip Giordiano
appointed commissioner general of i'm
migration and immigration commits
sioner at New York. He denied that
he gave Warrington money for his
service.