New Britain herald., 1924-04-09
RENEWED FORCE IN
 DAUGHERTY PROBE
TOday's Hearing DiselOSes More
 Alleged Juggling of Funds

Washington, April B. The senate committee appointed to investigate the department of justice and the official acts of Harry NJ. Daugherty announc- ed after an executive session today that its inquiry would proceed with renewed force despite the indictment in Montana of the committee prose- cutor. Senator Wheeler. At the meeting behind closed doors, 1 the indictment returned against the Montana senator was discussed at length and afterward Chairman Brookhart made this statement.
 More Vigorous Prosecution
 This investigation will proceed and proceed with force and determination it has never shown before." The chairman then called to the stand in open session George w.. storck, the department of justice ac- countant who testified yesterday. and he was questioned about list of de- partment eases on which he had worked. Most of his testimony yes terday had 10 do with the Old Hickory Powder plant, but today his examina- ton swung into phases of another Of the big post war eases, that involving the Bosch Magneto company.
 Storck said he had worked on the proceeding against Joseph r. Guffey, a democratic. leader in Pennsylvania and former director of sales for the alien property custodian. He said: "I indicted Guffey," after an .investi- gation in the case.
 S3gS,O 900 Shortage
 Reading from his examination of Guffey's books, Storck said there was a shortage" in interest amounting to sS9S,000. An indictment for em- bezzlement was returned against Cuff fey. but nothing done on it." the wit ness said and the shortage was made good,' in March 1921, after various negotiations between the alien prop erty custodian and the treasury de- partment.
 T know that this money was used by Mir. Guffey for his personal use and that 1t subsequently found its way into the treasury" Storck said.
 Guffy invariably" retained funds for some months when he made sales, he added, and these funds were earn ing 2ha to per cent, while he held them,
 Says Palmer Knew
 The alien property custodian, A. Mitchell Palmer, he said, was aware of this conditlon."
 The Bosch Magnetic company sale, a s4,O0o,000 transaction, was handled by Guffoy as a trustee account in the chase National bank, New York, storck said, and Guffey had the use of the Bosch proceeds for 52 days"
 Guffey used" some of the sales funds in his custody to take up personal loan," he asserted.
 The committee adjourned until Fri day because Of the difficulty in secur- ing the attendance of witnesses.
 Guffey was in financial straits" at the time of the banking transactions" the witness continued, owing to fail. ure of the "Guffey- Gillespie" oil com pany. Going into detail about the sale of the Bosch Magnetic company, Starck said Secretary Weeks lis not and has not been for IS years' member of the firm of Hornblower & Weeks, which figured in the sale. The name now is merely a firm name," he said.
 "Did Guffey use that money to pro- mote the Guffey-Gillespie oil com asked Senator Wheeler.
 "He used that money to borrow to promote that corporation" storck said.
 Martin E. Kern. Of Allentown, Pa, had told him, the. witness said. that be (Kern) induced Palmer to seize the Bosch concern as alien property. Kern's police record was read at this point showing various arrests, con- victions and sentences.
 "Kern purchased this property when he was not a citizen of the United States, in violation of law" he said, and added that Kern never was prosecuted in that case. He and his associates made a million dollars on the Bosch deal" storck declared, without putting up a red nickel"
 Asked to give the total borrowed by Guffey from banks in which he had trust funds, Storck said these loans aggregated s2,147.000. ''and some of these are still unpaid"
 Turning to the part played by A. Mitchell Palmer in the case the wit