Evening star., 1924-04-08
MOVE
AGAINST DU POINTS
.BALKED, IS CHARGE
Daugherty Witness Says
Company Gave Inadequate
Invoices on Old Hickory.

Prohibition enforcement policies
under the administration of Attorney
General Daugherty continued the
main objective of the Daugherty in
vestigating committee today, although
short side excursions were taken into
a mail fraud case in Boston and the
Old Hickory Powder plant controversy
in Tennessee
After Brice F. Armstrong, a Chi
cago prohibition agent, had brought
in a new string of charges about
illicit brewing and protected boot
logging i'll the Illinois district, L. G..
Yellowley, chief of the prohibition
units general agents, was called TO
the stand and submitted some of the
official records asked for by the com
mitteemen. Adjournment was taken
until tomorrow, before senators had
begun their detailed examination OF
the witness.
Charges Against Du Points.
The Old Hickory case was brought
into the testimony by George w.
Stock, a Department of Justice ac-
countant, who not only declared the
Du Pont interests had led the depart
ment to accept inadequate invoices
of the property, but, he added, that
confidential data gathered by him last
summer as basis for prosecution had
been turned over to the Du Pont law
yerS.
Stock also asserted that he had
been told by II. v. Green of Boston
whose stock transactions were being
investigated under the mail fraud
law, that Harry NJ Daugherty serv-
ed as his attorney before entering
the cabinet. There was no federal
prosecution in the case, the witness
said, although he had favored one.
YeIlowley Submits Records.
The records submitted by Yellowley
related particularly to the Standard
Beverage Company case in Chicago.
search of the documents for material
to justify his statement that the De-
partment of Justice had protested the
seizure and closing of this plant
A telegram from r. A. Haynes, the
prohibition commissioner. to United
States Attorney Olsen. Chicago, ask
ing a recommendation for action
against the Standard company, was
one of the four documents read. An
other was letter to Haynes from
Mrs. Mabel Walker Willeb randi, in
charge of prohibition matters in the
Department of Justice, who proteste ed
"unwarranted procedure and loose
business" methods by the prohibition
unit, and disregard of property rights
"in the Standard matter" The letter
was written on February s, 1924, and
contained long account of facts as
to the company, saving the depart
ment was faced with the prospect Of
dfsmissing the case and take the criti-
cism, or proceed to court with los
ing case"
Mrs. Willebrandt got an answer
from Haynes saying the seizure was
warranted and justified by your de-
partment"
Chairman Brookhart suggested that
Mrs. Willebrandt, "if all the facts
had been before her." might have had
a different view.
Told to Drop Case.
Armstrong said he and other agents
had seized eighteen half barrels of 8
per cent beer from the Western brewery
and recommended prosecution. W. O..
Potter, United States attorney at East
st. Louis, the witness said, told him
that he had instructions from the de-
partment to drop the case and that
was done.
1t was stated by the secretary of
the brewery company at the time,
Armstrong added. that a $1,000 "offer
in settlement had been accepted by
the government.
The witness told also of failures to
prosecute in the Garden City brewery
CdSC, anu VI ciIolLS " TtIlONe
him as enforcement agent because he
would not stop buying" liquor at sa-
looms they" did not want prosecuted.
Names Democrat Prosecutor.
Asked who the federal prosecutor was
in these cases, Armstrong said that
United States District Attorney Clyne at
Chicago, a democratic hold-over. was in
Office most of the time. He expressed
the opinion that Clyne had been kept
in by the republican administration be-
cause the Chicago brewery ring felt
they could handle Charlie Clyne."
Speaking of injunction proceedings
handled by Special Assistant Attorney
General Middlekauf and his assistant,
August Kruz, Armstrong said they had
conducted the case so as to delay serv-
ice long enough to let the original own
ers get out" The witness declared there
would be delays of two OF three years
in CLOSING up these cases. He recent
ly had been called as a witness in three
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