davidaulloa/AmericanStories huggingface dataset:
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Liquor Report


CONTINUED from Page Two)
amounting to PCS cases, he disposed
of in any way that he deemed ex-
pedient."
He reported that he gave
some to employees of the
Board, and to various conven-
tions and meetings of the
American Legion, stockmen,
county officers, and fraternal
organizations, and to callers at
his office.
Without any reflection on the ad-
rinistrator, who was probably acting
in good faith, the above is dangerous
procedure as this liquor is both Illegal
and contraband, in the opinion of the
committee, and should be disposed of
for the benefit of the taxpayers of the
state. On the basis of the average price
for liquor, the 295 cases involved would
be worth approximately $5,000-o0.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
The Dow Company

The records disclose tina
there is some relationship be
tween the activities of the Cap
itoI Brokers, Inc, and c. L
Dow Company of Havre. JACK
Ayers is apparently interested
in what is known as the Dow
Snyder Placer Company. The
evidence also discloses thai
Dow and Jack Ayers have been
acquainted for a number OF
years and apparently are on
very friendly terms.
Dow, who formerly was convicted
in federal court on violation of the
prohibition act, for some months has
been a distributor of beer along a
portion of the Great Northern line
with headquarters at Havre, and in
November, 1887, obtained the Schen,
ley DistiIlers Corporation contract for
Montana. Their former agent was
Martin B. C'NeiII of the brokerage
firm of Carr O'NeiII company of Butte,
and have been engaged in business as
commission men for 18 years. MIR.
O'NeII testified in part as follows:
@. Was your brokerage company
formerly the Montana representative
Of Schenley Distillers Corporation Of
New York?
A. 1t was.
@. AS such representative, did you
sell liquor and products of that com
pany to the Montana Liquor Control
Board?
A. / did.
@. And about what time did your
connection with that company cease?
A. November, 1887.
@. And at the time your connection
with them ceased, had your dealings
with Montana Liquor Control Board
been satisfactory to you as such rep
A. Yes.
@. And had you had any complaint
from the distillery that your business
dealings with them were not salts
A. No.
Q. Did your firm give up this brok-
erage contract?
A. No, it was taken away from us
by our principals.
@. After you lost the contract, have
you endeavored TO find out the real
reason why you lost it?
A. Well, we have got lot OF things |
we think, but the real reason we don't |
know. The only reason / could figure |
was that possibly our representing
Schenley wasn't satisfactory ID people |
who possibly control the sals of H.
quor.
@. Did you have more reason to
come to that conclusion than you did !
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16

We are of the opinion from
evidence submitted that under
the present system of liquor
brokerage the business is be-
coming racket, and if not
stopped, will soon be out of
control. The front man for this
setup seems to be Leslie or Jack
Ayers. The committee pro-
cured and obtained much first
hand information relating to
Ayers from the records of vari-
GUS provinces in Canada and
from the Identification bureau
at Great Falls, and these in eff
feet show Jack Ayers record
in part as follows:
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Stamps

There seems to be general mis-
understanding in the matter of han
ding of the state seals or stamps
placed upon liquor purchased from the
Liquor Control Board. Since July
1887, approximately 100000 Of such
stamps have been purchased. 1t
seems to be customary throughout the
so-called control states for the dis
tillers to requisition the stamps and
place them on the bottles or cases
prior to shipment. In the case of i'm
ported liquor, there is no procedure
for the placing of stamps at the points
OF origin, and for this reason stamps
have to be placed on the bottles either
at the wholesale house or at the va
rious stores. This situation is diff
cult one for the administrator to han
die, owing to the peculiar conditions
existing. The administrator advised
the committee that he will recon-
mend the purchase of stamps with
serial numbers.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Advertising

Unfortunately, your committee did
not have sufficient time to satisfac-
torily investigate the amounts paid to
the various newspapers for advertis-
ing brands of alcoholic beverages.
From the little evidence available. GER
tain distillers are alleged to have paid
as high as S1.00 per case for general
advertising, and in one instance it was
stated that approximately soc per case
of this amount was spent on Montana
newspapers. While we do not know
how this contract compares with 9TH
ers, it would be possible for the dis
tillers to pay handsomely for newspa-
per advertising, and no doubt In re-
turn would expect certain concessions
from the Press. The matter OF plac-
ing advertising seems to be largely In
the hands of the state distributors.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
u. L. Transaction

Continuing the racket idea, we vii
proceed to the transactions relative Il
the U. D. L. line of liquors repre-
sented by ]. G. ]. Dunbar company o.
Seattle. E. ]. Gilmartin, proprietor o.
the Gold Medal Diaries at Missouls
and for is years prominent business
man Of Great Falls and Missoula, for
merly was the agent of the ]. & J
Dunbar company. Mr.. Gilmartin tes
titled that his side line of liquor WA
worth from $4,000 to $4,000 a year
gross and apparently his representa-
ton was very satisfactory to the com.
pany, and undoubtedly was carried Oh
in a business manner. Mr.. Gilman
tins contract was terminated in July.
1887.
Mr.. Gilmartin's evidence In part II
as follows:
@. Now, a short time preceding the
time when your contract was ended
did you see Jack Ayers with any rep
resentative of the Dunbar company?
A. Yes, | did.
@. And was that mans name MIR.
Ostrow?
A. Yes.
@. And will you tell us where you
saw them?
A. In my room at the Placer hotel.
@. Was Mr.. Ayers in your room at
your invitation?
A. No, MIR. Ostrow called him up
there.
@. And do you know If Ayers and
Ostrow had conference after they
had seen you and then saw you later,
after the conference?
A. Yes, they went into the adjoin-
ing room. which was Mr.. Ostrow's,
and talked for some time.
@. Did you have a talk with Mr..
ostrow later that same day about
your contract?
A. Yes, on the way going home to
@. Were you rather suspicious that
the contract might be taken from
you?
A. Yes, | was.
Mr.. Gilmartin further testified IL
part as follows:
o. Was there any reason given to
you why the contract was taken from
you?
A. Mr.. Ostrow told me that he had
from Baltimore to do
away with the state agent and handle
t by their own salesman out of the
Seattle office.
@. Now, at that time, we're you
aware OF any ruling by the Board that
he distillery had to have state rep |
'esentative?
A. That was my impression.
@. Did you seek to inform yourself
IN that point by comforting with any
me that you believed had knowledge
II 1t?
A. Yes, / did.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Granting Of Licenses

II was undoubtedly the intention OF
the Legislature in passing the Act OF
1887, respecting the non-grantlng OF
licenses to retailers that have been
found guilty of certain crimes, to
eliminate the racketeer from the retail
business. 1t was clearly the intent
that persons convicted of major
crimes as we'll as for violations OF the
federal and state prohibition acts
should not be permitted to engage IN
the business. Through an alleged tech-
nicaity in the law, counsel for the
Board has ruled that the law does not
cover the case of certain offenders.
We disagree with this ruling. We be-
Iieve there is serious abuse in this
particular.
1t was brought to the committees
attention that one former inmate OF
the penitentiary is operating a saloon
within the town of Deer Lodge, and a
former inmate of the same institution
has at times been his bartender.
There was evidence that in another
county, at least three persons that
had served terms either in the Mon
tana state prison, or other state pris-
ons, were operating saloons. There
are innumerabIe cases of persons for
merIy convicted of violating the fed
eraI and state prohibition acts being
operators of saloons In the state. This
practice cannot be too severely crIti-
~L hn q ~
cleanup in this line as there are suffl-
cient law-abiding citizens in the COM
munities to operate all bars.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Page Three

Q. And did you receive assurance
that distillers dealing with the Board
had to have state representative In
| Montana?
A. Yes.
Q. Now, have you heard or learned
of any state representative In Mon
tana for that concern up until the LIST
of December, 1898?
A. have never heard anything
since / was told that their salesman
at Seattle would represent them.
Q. For your information, we advise
you that we have been informed, by
means of a letter from the company
to Mr.. John Page, that he is their
state representative at salary of SIS
per month, since December l, 1888
Do you know man by the name of
A Gunnard, or Andy Gunnard?
A. Yes, do.
After much pressure from the COM
mittee, J. J. Dunbar company final
Iy had their representative appear be-
fore the committee. He admitted that
he had been in the state but four or
five times in 1888, the last time being
in June, 1888. Nevertheless, his COM
missions amounted in excess of SIS, 900
for 1887 and 1888. Mr.. Gunnard claims
to have no checking account and con-
verified large checks into cash, stating
that he carried large sums of money
with him but sometimes deposited
portion to savings account. Gunnard
further admitted receiving regular
salary from the Dunbar company, and
it is our opinion that the checks
cashed in excess of $4,000 were not
retained by Gunnard but a portion
split with other persons.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16

to any other?
A Well, it was just my own. fell
for several months before we lost the
account that possibly someone else
would do more business than we did
@. Why?
A. Because 1t was extremely hard
for us to get sufficient supply OF
goods and keep 1t in the stores.
@. That is due to tie way that your
orders were handled by the Liquor
Control Board?
A That is correct
@. Well, then, it isn't true that up
to the time when you gave up the
contract, your dealings were entirely
satisfactory with the board?
A. Perhaps you are right.
@. Did it appear to you that there
was delay in filling the orders?
A. I wouldn't say delay in securing
the orders; there was delay in order
ing the merchandise.
@. Whatever delay there was was
on the part of the board or admins
traitor?
A. That Is correct.
Q. Did you believe, as a business
man, that If that delay were removed,
you would do more business for your
principal?
A. did.
Mr.. O'Neill further testified as fol
lows:
@. You will observe from the lette,
of this former principal of yours thai
in 1888 they paid Mr.. Dow the sun
Of $19,9267S. Did they ever pay any
where near that sum to your firm
as brokers?
A. No.
Q. What is the, greatest amount
they paid to you in any one year,
A. $12,700.00.
The evidence before the committee
discloses that in 1888, the Dow com.
pany received s19,926.7S In commits
sions An increase of over 100000
of what it formerly received.
C. L. Dow was subpoenaed before
the committee to bring his banh
statements. His evidence was far
from satisfactory but disclosed that
approximately one-half of this com
mission was drawn In the shape OF
cash from checks on a Havre bank
He refused to divulge what had be
come of this money other than to say
that it was in money in his posses
sion. He stated that it was not In .
bank or safety deposit box or in the
shape of cashiers checks or other
form of credit, but large checks were
paid in currency and retained by him
Dow was to appear for further ex |
animation the following morning after
he testified, but failed to appear, and |
the committee received letter inclos
ing wire from his wife in Minnes
polls stating she was i'll.
The attitude of Dow was
very defiant. He repeatedly re-
fused to disclose the disposition
IF cash drawn from the bank
N large amounts. The commit
zee feels that he was telling un-
truths, and the disposition of
approximately SO, 500 in cash
'or the year 1888 was not sat
sfactorily accounted for.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16

resented by DR.. Boris A. S. Aranow
for several years a prominent SUI
geon oil operator and business mai
in Shelby.
DR.. Aranow testified in part as fol
lows:
@. How did you happen to form an,
connection with that company?
A. I knew the chairman of the
board of directors through former as
sociates in New York. / used to live
in New York. When prohibition ter
minated, they approached me to rep
resent the organization in northeast
ern Montana.
@. About how long did you repre-
sent them in that capacity?
A. Just about four or five years.
O. Through the period that you rep
resented Them what would you say,
roughly, was the average monthly In
come for the services you rendered
A. Probably it would be $4,000 or
$4,000 a year or more.
@. Was there anything unpleasant
Will JOul lCldtlOno Will tuC COMPANY
which caused you to abandon con-
tract that was producing about $780,
900 or $4,000 a year?
A. No, nothing.
DR.. Aranow testified as follows rel
alive to the severance of his con-
tract:
@. Have you heard the rumor that
man selling the board, or trying to
sell the board might do better, or get
along better II he made financial ar
rangements with man by the name
of Jack Ayers?
A. No I didn't hear, except that /
saw some letters of Ayers when
was with an agent of the American
Distillery.
@. Where did you say it was?
A. New York.
@. Did he write letters to the Amer
lean Distillery before you released
your contract with them?
A. Yes, he did.
@. And in those letters, did he in
dictate that he had influential connec-
llOuS WHICH, Hight Ut W Lie duNduLd6C
of the company if they employed him?
A. Yes, he did.
@. And in those letters, did he men
ton a connection with the present
governor of the state?
A. He made promises that he is an
Influential man.
@. Well l mean, did he mention the
governors name, his connection and
association with him, and influence
with him?
A. Yes, he did.
. @. Don't you think, Doctor, that
perhaps as a result of those letters
the American Distillery took the posi-
ton that perhaps it would be better
if they were represented by Jack
Ayers than by you?
A. Well, I thought possibly that it
was.
The committee made an earnest |
Effort to procure the files respecting
his matter from the American Dis
illery company but were unsuccessful |
n obtaining the same.
In this particular, attention is called |
O the fact that since the Capitol |
Brokers, Inc, secured the American
)istilling company contract, that the
purchases have increased until it now
eads all other lists in volume.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16


Company of Lewistown have
received as high as seven and
one-half per cent in commits
sions.
Our opinion is that unless some.
thing is done to curb this matter OF
commissions, there is an opportunity
of a real racket in allowing excessive
commissions to be charged and divi-
sion made to silent partners. A few
Of the leading dstIIers, including the
firm represented by Benedict Bar
don, allow only salaries to their repre-
sentatives. We believe that this is a
very commendabIe course for all the
distiIIers to pursue.
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
The Johnson Company

The testimony disclosed that
E. j. Johnson company is not
Incorporated, and Mr.. johnson
stated that he constituted the
company. johnson is a distribu-
tor of five lines of beer
throughout central Montana,
with headquarters at Lewis
town.
A subcommittee examined
the bank records of E. j. or
Butch Johnson, and later at
Mr.. Johnson's residence ex-
amined his checks.
This examination disclosed
checks totaling $4,425 made to
cash. Three of these checks
bore what apparently were
Identification notations on the
corners. One notation was COM
posed of the letters ct. S."
Two of the other checks had
the notations sd. & T." We
made a record of these notes,
and on the following morning
we subpoenaed johnson with
his checks and found that era
sures in the meantime had been
made and new marks initiated.
We demanded an explanation
and he had none to offer. We
inquired further as to what in
dividuals the initials referred
10 and he again refused to an
swer. 1t is our opinion that q
portion of the proceeds of this
81, 425 was paid to others than
E. j. or Butch johnson. In this
particular it is interesting to
note that Administrator Wass
stated that it was his belief
that no commissions in excess
of five per cent were paid, that
in one month Johnson's record
showed that he had received
over $1,000 in commissions
based on seven and one-haIf
per cent commission.
The similarity of all these
transactions is SO much differ
ent from those of other distil-
leries that it forces anyone to
wonder if there was not a COM
mon plan.
During the investigation at Lewis
town, the so-called commissary deal
was discovered, and testimony was
given by DR.. Dunn and May King.
This evidence was submitted to the
House about week ago for their
and awaiting the same,
we will not at this time go into the
details.
In conclusion, it is our opinion that
f this so-caIed racket In the Iiquor
business is not stopped, there is a
treat probability that In a short time
he entire control will be in the hands
If very few persons, and that the
tate Of Montana will be penaIized by
charges and commissions.
Because of its refusal to cooperate
With this committee in the production
# information asked for, and particu-
arly its correspondence with said
ack Ayers, and because of its repre-
entatlon in this state by the Capitol
brokers', Inc, this committee recon-
nends that the Montana Liquor Con-
rol Board have no further dealings
whatsoever with the American Dis
Hing company; and because the j. G.
Dunbar and Co. of Seattle, Wash,
oilers of U. D. L. products, has had
o Montana representative in the sales
{ its liquors to the Control Board for
,any months past, it is recommended
nat the Montana Liquor Control
oard have no further dealings what
oever with the said j. G j. Dunbar
nd Co.
In addition to such action as the
louise of Representatives may take,
re believe that complete report
hould be made of apparent violations
the Robinson-Pattman Act on fair
Continued on Page Four)
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Commissions of Brokers

The administrator advised the joint
committee that commissions were
granted, ranged in Montana from
about two percent (29o) to a maxi
mum of five percent (5%).
However, the evidence dis
closes that on certain fast NOV
ing brands, the E. J. johnson
The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-10-16
Criminal Record Of
Jack Ayers

January, 1912. Charged with carrying
concealed weapons, under name Of
! Frank Morgan, at Prince Albert,
B. C.
December, 1912. Charged, as Leslie
e. Ayers, at Calgary, Alta, with
possession of explosives.
March, 1918. Charged as J. Atkins at
Calgary, Alta, with carrying con-
cealed weapons.
June, 1914. Charged as William Fisher
at Regina, Sask., with breaking and
entering, and also possessing ex-
pIosves.
October, 1917. Charged as F. J. At
kins, at Moose Jaw, Sask., with a
felony, and sentenced for four years.
March, 1924. Charged as j. J. Reed,
at Lethbridge, Alta, for stealing ap-
proximateIy $4,000 in securities
and money.
In addition, Ayers as "Smiling John
ME Reed" was arrested as the ring
leader in at least one bank robbery in
the state of Montana, but he was ex-
tradited to Canada for another Of
Tense. The records of the Montana
Bankers Association discloses that
Ayers and one Arthur Davis were the
alleged ring leaders of group of IS
persons implicated in various bank
burgIaries and robberies, including
those mentioned above.
Our Investigation also discIoses that
in 1925, for a criminal offense at
Havre, Mont, Jack Ayers wrote the
clerk of court that Roy E. Ayers was
his attorney. The evidence further
attorney for one of the accompIices of
Jack Ayers In Montana bank bur-
gIary in 1924.
The committee received evidence
showing that Jack Ayers is not related
to Governor Roy E. Ayers.
DR.. John G. Dunn, on the 18th day
of February, 1889, at Lewistown,
Mont, testified as follows in part:
@. Have you been connected with
Governor Ayers in his political cam
paigns to any extent?
A. Yes sir, have.
@. Were you connected with him In
him in his campaigns for
Congress?
A. l was
@. And for governor of Montana?
A. Yes, sir.
DIR. Dunn further testified:
NY recollection is that / met Jack
Ayers at the governors home in Lew
stown at the beginning of the general
election campaign in the fall OF 1886.
@. State whether or not you saw
lim frequently during that campaign?
A. did, practically every day.
@. Do you know what part he took
n the fall campaign for Governor
Ayers?
A. He was the manager of his CAM
,aign, statewide.
@. And as such did you come in con-
act with him, you being the presi-
lent of the Ayers for Governor club?
A. did
O. And did he as manager of Gov
rnor Ayers campaign have any duty {
r perform any duty with respect to {
he delivery Of money to you? ;
A. He did. )
@. And that involved what?
A. The Ayers for Governor Club ac- ;
cunt in the bank was kept in my :
anne and it was necessary for me to :
ign all checks.
@. And from whom did you receive I
,oney against which the checks were /,
rawn? I.
A. Jack Ayers.
@. Do you know whether Jack Ayers :
eposited in the bank money or checks :.
, your credit as the said official of
10 Ayers for Governor Club? !,
A. He did. =
@. Did he on more than one occasion
and you checks as such official? !,
A. He did. "a
Furthermore, the witness testified :,
, follows: \
Q. Now, in January and Feb f
uary, 1887, while you were in n
ne governors mansion did you
re Jack Ayers in that man =
on? q
A did. D;
Evening star., 1940-06-28

role which Cohan felt not quite
suited to him and vice versa,
The dormant critic in the inter-
viewer agrees with Miss Allgood
that the play is better than its
false start in the fall would indi-
cate.
X X sc X
The Capitol's Rhythm Rockets.
rested by the Orrin Tucker-Bonnie
Baker week, return to the stage to-
day. :. Two of their numbers are
supplemental to the dances of
Balerina Harriet Hector. Re-
turning also to the same program
are Sam Jack kaufman and Art
Brown, the talking musicians.
My Favorite Wife" is Washington S
favorite picture to the extent of
having a third week at Keith's.
Or almost a third week, since
The Ramparts We Watch" will
have gala opening at that house
on tuesday night. -. Aside to Miss
Sue T. Hill: So long as you agree
with us so thoroughly most of the
time, We heartily indorse your dis
agreement in yesterdays letter.
Evening star., 1940-06-28
Where and When
Current Theater Attractions
and Time of Showing

Palace-"New Moon," with JEAN
cite Macdonald and Nelson Eddy:
11:55 am, 2:20, 4:45, 7:l0 and 9:35
pm.
Earle-"The Man Who Talked
Too Much" but he's a fascinating
rogue: II am, lao, 4:25, 7:10 and
10 pm. Stage shows: 12:45, $3.50,
6:15 and 8 pm.
Capitol-"Susan and God" Joan
Crawford finds the better life:
1915 am, l:l0, 4:05. 7:O5 and 10
pm. Stage shows: 1890, $3.50,
6:25 and 9:25 pm.
Columbia-"Edison, the Man." i'm
personated by Spencer Tracy: HAS
am, 2:15, 4:40, 7:10 and 9:35 pm.
Metropolitan Brother Orchid"
Edward G. Robinson in a gayish rib
on rackets: II am, los, 3:15, 5:25,
7:35 and GAS pm.
Keith's - MY Favorite Wife,"