AMERICAN SCANDALS.

Taranaki Daily News, 23 May 1924, Page 5

AMERICAN SCANDALS.

MORE TROUBLE ARISES. By Telegraph—Press Assn.—Copyright. New York, May 20. A message from Newark, New Jersey, states that the Federal Grand Jury named Rickard, s’x others, and the corporation in the indictment charging illegal inter-State transportation of the Dempsey-Carpentier fight film. The jury started the investigation following the disclosures in the Senate Committee, when Rickard gave evidence describing the means whereby he circumvented the law. A long and angry debate, including an open charge of blackmail, marked the Senate discussion on the Wheeler committee report. Senator Borah asked the Senate to adopt the majority report, and to exonerate Senator Wheeler from charges of misuse of his office made in the Montana Grand Jury’s indictment. Senator Borah declared that the indictment was procured on hearsay evidence without calling a single witness who had direct original knowledge regarding Senator Whopler’s supposed misconduct. He said the reason was that direct testimony, if used, would have acquitted him.

Senator Glass (Democrat) interrupted with a stronger charge, saying the indictment was an attempt by the executive department to blackmail the Senate on a point of law and block its investigation of rascality. Senator Glass paused and surveyed the Chamber, noting the presence of a total of four Republicans, and added: “I want to call the country’s attention to the small attendance of Republicans when the integrity of the State is involved.”

Upon the authority of the former Attorney-General (Mr. Daugherty), orders by*Jess Smith, his friend and companion, were obeyed by the bureau of investigation of the Department of Justice.

Lewis Bailey, its former actingchief, giving evidence before the Senate Committee, said he was told by Mr. Daugherty to take up all questions with Smith.who represented him. “Everybody around the Department of Justice recognised Smith as the man they must pay attention to. He was the most powerful man next to the Attorney-General.”