Evening Star Newspaper, March 19, 1924, Page 4

4 OLDRIDGE CHARGES ARE DENIED BY BURNS Declares Agent Was Never Put on Inquiry on Fight Pictures. ™ TELLS 0. Once Asked for Holdridge's Res- ignation, Chief Says. PROSECUTION William J. Burns, director of the bureau of investigation, Department of Justice, today issued the follow- ing statement in reference to the tes- timony of Gerald O. Holdridge, a for- mer special agent of the bureau, be- fore the Senate committee investi- gating the Department of Justice: “Holdridge endeavored to give the impression that he was making an avestigation in the fight film matter, directed by me, when he suddenly was called off the case and detailed o another investigation, as he stated, which was two years old. The facts attending the service of Holdridge as an agent of the bureau are as fol- lows: Arrested in Inm. *I received an anonymous Tnews- paper clipping glving an account of a disgraceful affray that occurred at the Sunset Inn, near Troy, N. Y. in it Special other sumed d when the <1 now recollect the declined Lo pay ared he was of the bureau of in- proprictor of the inn i and when they arrived intosi drew shoot. under several inn, Jacy and ited this liquor and food, presente Foldr ed his e polic being tise: licd th 5. ' - q | 4d mot reported the ) (ter to the bureau, as was his duts ntil | communicated with bim, and sked for Jlanation of his con- 1 dispatched an agent from York to muke a thorough inves- | tigation of the matter, and as & result of this investigation we uasked for ‘Uoldrdige's resignal Pleaded for Retention. *Tnstead of complying with the re- guest for his resi Holdridge ought all of political and so- cial infl nost photograph . plead on in the called on men pleading rts nd wept like | w4 child, he would be Gisrace L that timie he said mothing | whatever co g his knowledge | of Jap’ Mu nd the prize fight silms, but he did tell me ot & number of important matters that he had un- der inv ation i triet, and stated that he had an ‘un- ! der-cover man’ who was giving him | very_ important information concera- | ng lotteric nard r 1 received a I believe it was a lon phone message—from forming me portant matte ance tel ridge, in- he wou that he and s o to Washingtc Holdridge come to Wi time told m. Muma, in whick name of the Att 1 if he could zet Muma stantiate what hLe said Mu Muma men rney Gen ling | time ana | Attorney matter placed in the hands of the United States attorneys. Finding from the varlous reports received in my office that there apparently was some scheme afoot on the part of the men showing the’ films to go into various states and pay a fine, acting under directions from the Attorney General and one of his assistants, I advised Agent Brennan in New York by letter that there seemingly was a conspiracy on the part of the men owning these films to exhibit them and therefore the Attorney General wanted a thorough _Investization made with a view to prosecuting the men for conspiracy. Agent Navarro was detailed on the case and shortly thereafter the men engaged In this conspiracy stopped operation. Denies Sidetracking Navarro.. . “Holdridge sought to give the im- pression on the witness stand that Navarro wus sent to Haiti in order to stop his activitics in the investi- gation of the fight films. The truth i that Navarro did not go to Haitl for months after he had finished his investization. The evidence we gathered was turned over to the United States attornoy at New York, as we do in all such cases. There was no protection given any one, at any time, anywhere. On the other hand, the matter of fight films was vigor- ously prosecuted throughout the country. In fact, when the Dempsey- Gibbons fight w staged at Shelby, Momwt, the bureau sent men to the ne of the battle to see that the izht films were not smuggled out of the town or ceven shipped by air- ane” ~ DAUGHERTY WAS REMISS ABOUT LOTTERY CHARGE CASES, ASSERTS TEXAN (Continued from itinued from First Page.) :,l; vart letter containing the opin- art, Dawkin, g tructions to investigate panies.” s the I ment is concerned, its t Office Depart- there's no indica- unbroken custom was ter?” asked republican, New " Dawkins replied. 22, 1 had a confe ©l ubout the United and he said he did not feel he should Institute a prose- ition without instructions from the Office Department in Washing- The solicitor of the department told me the Stewart decision had nothing to do with the United Home Builders, and that Mr. Zweifel should proceed if the case had merit. Decided to Drop Case. “In April, 1823, however, Mr. Zwel- fel told me t it had been decided ease should not be pursued, fuls in Washington had come at decision.” “Do you kn, ferred with Daughert hart “1 do not know with whom he con- ferred.” Dawkins asserted, the records showed acts, well within t tation,” to justify eution. The committee then reces 10 o’clock tomorrow. DAUGHERTY DECLARES INQUIRY HAS IGNORED DEPARTMENT EFFICIENCY Deéclaring that th the Depa prope whether he h; Attorney d Chairman Broo however, that avert sof limi- in @ pros Zw sed until legitimate work tment of Justice is be cared for and that energy are being directed of General Daugherts nt last night asserted tf in a statem the told him, and he suid he could. he exy it portant _information from cover man. and 'L then my request for his re sent him b for information said he could obtain. “Stringing”™ Him, Borns® fter some time 1 received Holdridge . number of r: | had been Sccured by him two years yreviously concerning the ‘under- wover ‘informant and the character| of the Information that was then be- | ing sou, 1 I at onc: ‘was ‘stringi J withdre uation, Holdride strongly to re his ithdrew Belief. from | concluded that Holdridge | refused to do, not work again in This seemed to | us hie claimed h his reputa- ¥. About this a Tenuest from s attorney in the . asking that an nt there to investigate the theft ome bonds. I d iled Holdridge o s case, and I nd_that he wi latine the rules of the servic ng from one pluce another | »ut authority. - In t ntime, | * s urging that he b irned to Albany. ¥ declined t to_his uests in this resp te B.J nt in t ng fully t told him he coul n acc I wrof e, a to have with Holdridge ry explicitly coted nan to observ rully, and if he did nc re fully to what o expected of m that we would & to demand | s resignation | Accepted His Resignation. ! ‘Holdridge, accordingly, was _in- | to report to Brennan, which He had been there but a short) » when one day he suddenly ap- | Washington, and when 1 <ized him why he had come, without| authority, he brusquely informed me | That he had come to tender his res tion, that he did not intend to be e a_‘goat’ of my Mu 1 told m 1 4id not care anything about her Muma or himself, and that we | cept his resignation at once i he could o as far as he liked in ! ution of Muma, that we had [ st in the matter. i dridge was not inv gating | vize fight films when T directed him , make the investigation at Cleve und, nor had he at any time been \aking any investigation of prize «ht films, but he had learned thisi tory he told me concerning Muma | from ex-Special Agent Spellacy. It as apparent to me that Holdridge as under the impression that he had impressed me with the Muma story. | \s a matter of fact, the prize fight, jilms were promptly investigated by wur agents in every state in the coun- {ry where they were shown, and ar- rests were promptly made and the up { both | ministration | lation gr | and investigation hefore they are ready | Fleet, since decy Senate committee investigating the nder- [ department is enguged with “rumors, | 000, and unreliable emanating gossip hearsay from evi- tainted “The constantly increasing of business which the Departmen Justice is compelled to take Mr. Daugherty sald, “mak le for the Attorney G give much personal attention to the various investigations now being con- ducted by conbressional committees. In addition directing the policy of the many matters. large and small, beinz handled by his associates in the departmen he is compelled to personally upon each one of the opinions re- Guested of the Attorney General by the President and heads of exceutive departments. Involve Big Issues. “Thesa opinions involve questions of national policy and frequently re- sult in i i which terminates only after a decision by the Supreme Court of the United States. During the past few weeks many of the most important opinions during the ad- ave been written and till pending before the Attorney General for decision “Many of these are decisions relati fons of taxation involving t money and are aw. po; to - sblems affecting the far) s of the country under legi atly extending the jurisdic. tion of the Department of Asricuiture. he cases of large importunce in volving the enforcement of the anti trust laws in connection with large bu ness enterprises are being disposed of regular order, as though no investi- ions of any kind were pending. These cases require months of study involve th ing inte: to be submitted to (he courts, and the Attorney General personally must de- cide what cases shall be commenced and where they shall be tried. Praised by Judge. “After the trial in New York of the Trenton Potteries case, Judge Van sed, said: “‘dt is my purpose in this case to 'pronounce such sentences as: will serve to notify all men engaged or inclined to engage in similar prac- tices that neither the law nor the public will tolerate any such com- mereial oppression, and that if any « further combinations either in the building materials trade or others are engaged in similar criminal oper- ations they may take warning and cease their lawless activities in time to avoid visitations of the law.- And let me add that I should not close this case without entering of record my cordial indorsement and appre- ciation of the splendid efforts of the Department of Justice through the Attorney General and his assistants, | who it has been disclosed have been so Intensively and actively engaged in the conduct of the investigation THE EVENING STAR COUPON “THE AMERICAN GOVERNMENT” Present this coupon and $1.00 at the Business Office of The Evening Star and secure your copy of the bogk, a 5-color map of the United States, 28x22 inches, qd a 32-page booklet cen- taining the Constitution of the United States. -‘.fll gfle:r,—.‘.l for up te mfles, 8c; 300 mi sreater distances, 'lfi m ter rate for 2 pounds. This is the book that is generally N : The Book That Shows Uscle Sam At Work conceded to be the most authorita- tive and understandable account of the working side of the Federal Government that has written. ever been I D. C, WEDNESDAY i MARCH 19, 1924, | THESE ARE TRYING DAYS FOR THE OFFICE BOY. —By WEBSTER. | DAUGHERTY SEES HIS PICTURE OF A *loo.ooo AYEAR EXECUTIVE WHO PAID HIS INCOME “TAX OMTHE 15T S, se were aggrezating sentenced to pri- from six to ten 000 and were son for periods months each, Other Important Cases. “Many cases of tremendous portance to the country ken care of in the w se on nd many prol in the conduct of the on- ! stantly referred to the Attorney Gen- eral for his personal decision “In the Court of Claims one eas decided yesterday a nst the rnment in which a judgment for 00 w rendered, while at the time demurrers to the petition the government in twent) 1e ses were decided in favor ¢ the Fovernment in which the prin nount claimed exceeded § with interest and chures involved more than {000.060. The petitions in these i\w re dismissed outright personal at | | i being ctions tng I Eov 1 | sam against 1 can ever to the de- as & through the | . but each Attorney Gen- bonsible for the policy of | in the department. The the government in the jan extent during the pi {that “whereas the total lcases commenced in 1912 i 20,000, during the s Ythey exceeded 's2 Whereas les | than 20,000 ¢ Eov jernment was u were terminat- d in 1 more than 78,000 were {terminaged last year. . [ Following Cases Through. | “The important case of the govern- {ment against the Chemical Founda- tion, Inc. which had been the sub- B! of thr hearings by separate lcunKresslullul commities, has just I been taken on appeal to the circuit {court_of uppeals for the third cir- | cuit. The policy of pursuing the gov- |ernment’s case to the court of last {resort, as well as the position to be taken by the government in its briefs, is one primarily under the con- itrol of the selicitor general, but also lunder the supervision of the Attorney | I General. | "“The 'Attorney General said last !nizht that, while he is tremendously !interested in the outcome of the [ hearing before the special committe !investigating the Department of Ju tice, -he has nothing to fear from a searching inquiry into every activity Within the department. Its business is promptly disposed of and the men and women now engaged in its serv- are co-operating most efliciently sfully in disposing of the problems committed to !their care, with the sole thought jof discharging their full duty in pro- I tecting the rights of the public with- {out fear or favor. | “So far the investigation of the Department of Justice has not dealt with the efficiency of the department. !The testimony as revealed in the | hearings has consisted of rumors, igo!slp and unreliable hearsay evi- idence emanating 'from tainted sources {such as discredited and discharged agents, some of whom are under indictment for misconduct in con- nection with their official duties, and others who have no reputable stand- ng in the communities where they ive. . " “Mcanwhile the legitimate work of the government goes on and the At- {torney General's time and energy is ! directed to its accomplishment.” {DECLARES LAUFER REMOVAL JUSTIFIED | | Representative Kiess Assures Presi- dent Public Printer Within Rights; Hits Restoration. ten years numbbr of numbered Public Printer Carter was entirely justified in removing August Laufer | from his position in the government ! printing office, according to Repfe- | | sentative Kiess of Pennsylvania, | { chairman of the House committee on | printing, who discussed the case with | | President Coolidge at the White House today. { Representative Kiess told the Pres- ident that from his own information | he was satisfied that Public Printer | | Carter had acted within his rights, and that restoration of Mr. Laufer o his old place, as Had been request- ed in protests received at the White House, would not be for the general good of the service. Mr. Kiess explained to the Presi- dent that his reasons for expressing ' his views regarding the Laufer case! was because of the protests filed at, the White House, and to give the President assurance that Mr. Carter was prompted by a desire only to im- Rrovo conditions at,the printing of- ce. e Tl Sl I ' ert wrote 239 songs. | Court justice, must have known that { who participated in this showing, be- Tn one period of two years Schu- hattacks. }invited attention to what is golng PsT! sav.wituie, CAMNM YOU LET Me HAVE FIFTY CeEnT; FOR LUNCH 7 I'LL + PAY VT BACK NEXT ATURDAY, HomesTLY' STANDALS OF 14 DEPLOREDBYBORAH Warns Senate That “People Back Home” Want Re- medial Legislation. andals of Washington, re debated in the Senate erday, Tunning the gamut the Dempsey-Carpentier fight Roxie Stinson’s testimony be- the e investigating com- mittee and the loan of $100,000 to Al- bert B. Fall b L. Doheny, the omtory emanating from the demo- cratic side of the chamber nator Horah of Idaho, republi- can, then took occasion to warn the| |Senate that the people back home,| who look hopefully to this Congress | for remedial legisiation, may demand | soon that Congress forego its “grand jury” pursuits and address jtself to @a ‘program of constructive legisla- tion. New Attacks Launched. Senator Neely of West Virzinia, Senator Heflin of Alabama and Sen- ator Car: of ~ Arkansas, demo- ed the renewed attacks sing not only the democrats senators on his own side of the broad center aisle that is the Senate’s political no man's land, Sen- ator Borah predicted that unless the present “objectless program” gave way to more positive remedial meas- ures, the session would end without x legisiation and with other im- portant duties but half performed. “The next campaign will not be won on the platform written at| Cleveland.” said Senator Borah to his party leaders. “We must make our record here if we are anxious to con-| tinue in power.” Necly Lashes Lodge. Senator Neely, in a carefully pre- pared speech, brought the oil dis- closuras back into sematorial debate after a quiescence of nearly a week by bitterly iling Scnator Lodge, the republican _leader; questioning the wisdom of President Coolidge in his telegraphic correspondence Wwith Fdward B. McLean and charging that newspapers were attacking the Senate because their interests were being undermined by the continued disclosures before the investigating committees. The West Virginia Senator said that every one hoped Senator Lodge is correct in his defense of the Presi- | dent’s uprightness, but recalled that on_ another occasion some Years ago Mr. Lodge, according to news reports, had delivered himself of a somewhat similar tribute to Albert B. Fall The republican leader's denunciation of democratic senators for attacking the President, Senator Neely said, was nothing less than an attempt to fore- close the right of free speech in the Senate. Caraway Raps Hughes. Secretary Hughes was singled out by Senator Caraway as the particular target of his attack, but he added that Mr. Coolidge, while he was Vice Prosident, Postmaster General New and others also had attacked the private showing of the Dempsey- ! Carpentier fight films at the McLean home here, _after they had been brought to Washington “in violation of the law." He said that Mr. Hughes, an eminent lawyer and former Supreme the law was violated, and declared that unless Attorney General Daugh- erty had “suspended” the criminal code, all of those who attended the exhibition must be prosecuted for conspiracy. “Violated the Law. “I wonder if we will called upon” he smid, “to remit the fines which the law imposed on the At- torney General, the Secretary of State, the Postmaster General, the then Vice President and other cabinet officers cause those who participated were guilty of violating the law.” Declaring that the President had | contributed “not a word” to the Sonate's offorts to “drive the grooks” | out of the government, Senator Hef- lin renewed his demand that Mr. Daugherty be expelled from the cab- inet and be acked to explain to the country how Jess Smith obtained authority to exercise some of the im- portant functions of the Department of Justice. Economic Needs Cited. Neither Senator ‘Borah nor any other republican made reply to these Instead the Tdaho senator | burden. Z 277 NMo, BuT CAM LETCHA HAVE A QPUARTER IF AHAT'LL Do YA AMY GCOD on outside Washington while the! Senate investigating and debatin and cal d on the republican leaders in particular to give more of their | attention to pressing economic needs | that affect wide sections of country, “Homes are being sold’ he said, | “business Is' embarrased, and farms | are passing from their owners be of taxes. qually distressin: is the agriculturai problem. In on county in northwest 6,600 items | of property of farmers recently have | been offeréd fc | the | Flays “Objectiess Program.™ hile he did not oppose the pursuit | of the pending investigations, the Idaho | semator went on, senators must rel- | izo that “the time is near at hand | when we should dissolve ourselves as | 2 grand jury” and resume the busi- ' ness of les on. He asserted that | at the pr pace there scarcely would be time in the present session | to consider adequately the necessary appropriation bills ' “Unless we depart from this ob-| jectless prozram.” he continued, “we not only shall fail to reduce mws,‘ but I venture to predict that when the 1 closes we shall have add- | ed to rather than lessened the tax If that is sc, there is only one judgment due us. 1a; DEFENSE AFFIRME Says Evidence in 0il Inquiry Con- firms Statement He Made to Senator Willis, NOTHING IMPROPER SHOWN C. Bascom Slemp Has No Further Explanation. Attorney General Daugherty issucd the following statement last night in connection with the testimony given yosterday befors the oil investigating committes of the Senate: “After reading the testirnony pr wented to the il committec today, Attorney Geoneral Daugherty said Fellows! 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