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Story March 18, 1927

Douglas Daily Dispatch

Douglas, Cochise County, Arizona

What is this article about?

During Aaron Sapiro's $1M libel suit against Henry Ford in Detroit on March 17, defense counsel Sen. James A. Reed attacks Sapiro's character, legal practices, and motives in farmer cooperatives, asserting the Dearborn Independent's claims of exploitation are true. Objections and judicial conferences occur.

Merged-components note: Continuation of the SAPIRO libel suit story from page 1 to page 7; both labeled as story, so no label change.

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SAPIRO'S RECORD TOUCHED BY REED IN FORD LIBEL

Opening Argument of Counsel Indicates What Defense Will Be

DETROIT, Mich., March 17 (AP)- Aaron Sapiro as an organizer of co-operative associations, as a lawyer and an orphan on the Pacific coast, was described today by Senator James A. Reed, of Missouri, in the Chicago man's $1,000,000 libel suit against Henry Ford.

Making the opening plea for the defense, the senator warmed up to his task in short order, attacking Sapiro's motives in working among the farmers, asserting that Sapiro repeatedly had declared he did not wish money for what he was doing, and at the same time collected thousands of dollars.

"He collected $142,000 for forming a cotton association in Alabama," evidence will show, and then obtained $8,000 for representing the organization later in receivership proceedings," declared Senator Reed.

Most of the afternoon was taken up by a conference between Judge Fred M. Raymond and the attorneys for both sides. William Henry Gallagher, representing Sapiro objected to the general argumentative nature of the senator's plea which he said instead of confining itself as to how the defense was to prove the truth of alleged libelous articles printed in the Dearborn Independent, Ford's publication, was an attack on Sapiro and his methods.

Judge Raymond permitted Mr. Reed to continue only a quarter of an hour being left before adjournment. He asked both attorneys to shorten as much as possible introduction of evidence, omitting relatively unimportant matter. Mr. Gallagher completed his opening plea, preceding the senator.

(Continued on Page Seven)
Sapiro's Record Touched
By Reed In Ford Libel

(Continued From Page One)

defining the charges printed against Sapiro in the Independent into three classes. First of all he said, Sapiro had been attacked as an individual, his character and honesty as man; second, an attack had been made on him in his profession as a lawyer regarding his loyalty and faithfulness to his clients.

The third and most often heard was the charge as to his work among co-operative organizations, it being claimed he was a member of an international ring of Jews formed to exploit agriculture. Removing his tortoise shelled glasses at time, gesticulating at the jury with sardonic smiles and deprecating glances, Senator Reed devoted most of the day telling the jury what he was to prove as to Mr. Sapiro's business methods. Seats were again at a premium and at the beginning of each session the room was cleared of all who could not find a place to sit down.

"We shall try to show," Senator Reed said, "that what has been printed about Mr. Sapiro in all its real essence was the truth and it is no libel to say of a man who is a Jew that he is a Jew. This is the same kind of a case it would be if Mr. Sapiro were a member of any other race.

"I believe the court will tell you that Mr. Sapiro cannot capitalize and recover here on any sympathy that may be felt for the people of his race. He asks a million dollars—from Ford and the Dearborn Publishing company, and that is what we are going to try in this case."

The defense attorney spent some time telling of operations of Sapiro among the tobacco growers of Kentucky and the formation of the Burley Tobacco Growers' association.

One of the points to which Mr. Gallagher objected, during the conference with the judge was the senator's attack along this line. Gallagher told the judge this had all been brought out in trials in Tennessee

association had been exonerated as well as Sapiro of any questionable motives. Bernard Baruch's name was brought into the case when Reed promised to prove that at Baruch's suggestion Sapiro went to Kentucky and through a committee of five, named by Sapiro and Robert Bingham, publisher of the Louisville Courier-Journal, formed a tobacco co-operative association.

Members of the committee which included Mr. Bingham made millions out of the sale of warehouses to the co-operative, evidence would show, said Senator Reed.

Coercion was often used in getting towns to aid in forming co-operatives, he charged, citing the case of Wilson, N. C., where they were told if they did not get behind the movement, grass would soon be growing in their streets.

"And in this same town," the senator said, "tobacco growers got on the open market 45 per cent more than members of the association did."

Mr. Reed was interrupted frequently before the conference with the judge, by Mr. Gallagher, who objected to the attacks against Sapiro and who believed the senator should confine his statements as to evidence to be introduced to prove the truth of alleged libelous articles.

Turning quickly toward the judge, the senator said, "Your honor, as a capable attorney I have examined this statement and I do not believe the matter to be purely argumentative. I intend to introduce evidence to prove their truth."

"At the time Mr. Sapiro entered these co-operative organizations he had never owned a farm, never plowed a furrow or sowed an acre of grain. He was a city boy and grew up a city man," said Mr. Reed, who read several speeches of Sapiro's in which he told of his life as an orphan, and fight for an education.

What sub-type of article is it?

Crime Story Deception Fraud

What themes does it cover?

Deception Justice Crime Punishment

What keywords are associated?

Libel Trial Sapiro Ford Cooperative Fraud Defense Argument Farmer Associations

What entities or persons were involved?

Aaron Sapiro Henry Ford James A. Reed Fred M. Raymond William Henry Gallagher Bernard Baruch Robert Bingham

Where did it happen?

Detroit, Mich.

Story Details

Key Persons

Aaron Sapiro Henry Ford James A. Reed Fred M. Raymond William Henry Gallagher Bernard Baruch Robert Bingham

Location

Detroit, Mich.

Event Date

March 17

Story Details

In the $1,000,000 libel suit by Aaron Sapiro against Henry Ford, defense attorney Senator James A. Reed opens by attacking Sapiro's motives and business practices in organizing farmer cooperatives, claiming the Dearborn Independent's articles are true and detailing Sapiro's earnings and methods in various associations.

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