OIL SCANDAL.

Hokitika Guardian, 17 March 1924, Page 2

OIL SCANDAL.

USTKAI.IAN AND N.Z. CABLE ASSOCIATION MRS SMITH'S CONFESSION. AMAZING REVE 1 /ATIONS. WASHINGTON, March 1-1.

The confession hv Mrs Smith of what her late husband told her regarding his relations with Doughtcrly occupied the morning at the oil inquiry sittings. She stated that. Doughterty and Smith invested five hundred sterling each in a Western oil proposition, with Colonel Harder, a prominent official in one ol Sinclair’s teapot subsidiary companies.

Regarding the Dcmpsey-Carpentier cinema pictures. Mrs Smith said that Smith and Doughterty had planned to make big profits by allowing the transport of the films from Stale to State, which was against the regulations and required special permission from the Government. Sla- also alleged that Doughterty. Smith and their companies had places some miles outside the city where they entertained friends. Sometimes they got cash in whisky deals and sometimes took their winnings ill liquor. It was Smith's job-to do the dirty work and arrange liquor deals. According lo witness Doughterty was extensively engaged in hootlogging. Delight er ly and Smith arranged, ut Dough forty's office, to give permits to get liquor out of bonded warehouses, hut before long they became alarmed and discontinued the practice.

Mrs Smith also recounted how Smith had arranged for Dougherty to secure a pardon for and the release of a brother of a well known comedian who is undergoing imprisonment. Tn this connection Smith showed her seventy-live hank notes of a thousand dollars each. Further examination of the witness is being conducted in secret. WASHINGTON. March 16. President Coolidge has named Judge Curtis Dwight ’Wilbur to succeed Mr Denby ns F.S.A. Navy Secretary, following on the hitter’s resignation, on account of the oil lease enquiry, .fudge Wilbur is the Chief Justice of the California Supreme Court, and is a graduate of the United States Naval Academy. His name has been sent to the Senate for confirmation.

MORE POLITICIANS IMPLICATED. WASHINGTON, March 15. A most astounding story, corroborating Miss Simson’s testimony of March 12th. has been told by a former agent of the Department of .Justice to the Senates’ Dougherty investigation committee. The story is one of scant investigations as members of the Cabinet and Congress, including Messrs Mellon, La Foqletteo, Carraway and the collection nf huge sums through clandestine activities directed from an office within the Department, of Justice.

The witness declared that lit had collected one hundred thousand dollars from Japanese representing the Mit-sii Company, in connection with aircraft frauds that were being prosecuted by the Department, and he gave the money to Jeff Smith, who was Dougherty's intimate associate.

The witness admitted that his investigations as io Senator La Follette billowed the latter’s introduction of a resolution to investigate the naval oil scandal.

Criminal implication-;, growing out of this testimony, induced the Semite to-day to grant an extension of the Committee’s powers, in virtue whereof it is now permitted to hold its hearings in any part of the 1 nited States, and more freely to issue subpoenas.