THE OIL SCANDAL.

Hokitika Guardian, 24 March 1924, Page 2

THE OIL SCANDAL.

AMAZING GRAFT SYSTEM. UJSTIULIAN AND N.Z. CABLE ASSOCIATION WASHINGTON, March 22. The Dougherty Investigation Committee heard an amazing recital regarding the ramifications of the Bootleg Trust from the testimony of a Now York drug importer, who admitted that Lc represented the bootleggers, and paid within a three months’ per-

iod 200,000 dollars to two influential men. who illegally procured permits for the withdrawal of 50,001) cases of liquor from warehouses and distilleries. one of which was the Overholt Distillery in Pittsburg, which is reported to he partly owned by the Mellon (Federal Treasurer’s') interests. The witness stated that the permits cost 15 dollars per case, the money 1 icing paid to one, Jeff. Smith, the Lieut. Smith whose suicide some time ago was cabled on March 12th. This Lieut. Smith was also instrumental in purchasing immunity from prosecution in connection with the Dempsev-C arpontiev films (cabled on March 2ml). Witness further traced a labyrinth of corruption among the Department of Justice officers, describing minutely how various co-operating subordinates shared the sums with which he bought their influence.

The Committee, meanwhile is highly indignant at Attorney-General Dougherty’s increasing investigation of its members. Its Chairman, Senator

Brookhart, declared that be had just received the names of two Department of Justice officers, who had specially been sent from Montana for the purpose of investigating as to Senate! Wheeler. Great disorder ensued, which became well nigh uncontrollable, when Senator Ashurst made the charge that Attorney General Dougherty had spirited away to Europe an arch-con-spirator whose testimony the Committee regards as essential, to explain lhe mysterious secret influence to which the Department of Justice has l,oeu subjected as the result of the constant charges of official corruption, and the increasing evidence of nondirecting a sVeeping investigation into feasance and mis-feasance. Representative Kcdrick, of New York, has introduced a resolution in the Federal House of Representatives directing a sweeping investigation into the Federal prohibition enforcement. WASHINGTON, March 20.

Tex Rickard, boxing promoter, appearing before the Dougherty Investigation Committee, was questioned concerning the illegal distribution of the Carpenlier-Deuipsey films in interstate commerce. He testified that, knowingly, he had arranged for the distribution, upon a secret assurance that prosecutions would not be pressed. Rickard stated bis mode of procedure was to exhibit, the films and submit to a light fine, and then to continue the exhibitions with impunity, this being apparently through the connivance of the Department of Justice o fficinls. Rickard stated that he was first lined one thousand dollars in New York, adding: “Then I went out to get. niv money hack.” The Committee, however. showed that lie more than recouped his initial loss. The committee produced Rickard’s own expense accounts, these indicating his average fines within each State. The average line was one hundred dollars, against receipts of twenty-live thousand dollars. Rickard declared, however, that these methods involved other heavy expenses, which made his own net profit only one thousand dollars. NEW OIL REVELATION. WASHINGTON, March 22. Probably tlie outstanding sensation of tlie myriad sensations arising from tlie oil investigations was offered today by a former train robber, whose name is classic in the history of his profession, Mr Al Jennings, who new is an Evangelist, and is also an oil speculator. He has been summoned from California to appear before the Senate Committee, and prior to entraining for Washington, lie inlnrined newspaper men that he would tell the Committee that an Eastern ex-Senator, prominent in Republican circles, absolutely controlled the Republican National Convention in 1920. and practically engineered the Harding nomination. upon the payment to him of one million dollars from a. certain oil interest

Jennings, alter his hriei announcement. dramatically declared that his lips were sealed until he occupies the Senatorial witness chair, when he will tell everything.