Jess Smith
Jesse W. Smith was a member of President Warren G. Harding's Ohio Gang. He was born and raised in Washington Court House, Ohio, where he became a friend of Harry M. Daugherty. There, Daugherty helped him to become the successful owner of a department store. Smith became Daugherty's gofer during the 1920 campaign. There was always a question about the nature of the relationship between Daugherty and Smith.
Role
Smith came to Washington as an aide to Daugherty as U.S. Attorney General. He had a desk at the Department of Justice and was Harry Daugherty's chief advisor. This allowed Smith to wield considerable influence.He was also Daugherty's roommate at Washington, D.C.'s Wardman Park Hotel. Daugherty "lived, worked, and traveled in the near-constant company" of Smith. The two routinely spent days together in a run-down cabin in the Ohio woods, and in the capital, they took up social roles usually reserved for spouses. Daugherty's wife had remained behind in Columbus because of illness; Smith was divorced.
Smith is rumored to have sold bonded liquor to bootleggers. He was associated with a house at 1625 K Street and became an embarrassment to Harding and Daugherty as the Teapot Dome scandal focused increased scrutiny on Harding and his supporters. Before leaving for Alaska, Harding told Daugherty he wanted Smith out of Washington.
On May 30, 1923, Smith died of a gunshot wound, and was found with a pistol at his side. His death was pronounced a suicide, but Alabama Senator James Thomas Heflin alleged otherwise, first at an investigatory hearing and later from the floor of the United States Senate. Bureau of Investigation Director William J. Burns lived one floor down, and quickly rushed to Smith's residence to "tidy up the scene" prior to the police's arrival. According to Smith's friends, he had been depressed for weeks before his suicide, fearing that Daugherty "no longer needed or wanted him".
"Nobody else knew what he knew and with him dead there was nobody to tell the story – so Jesse Smith was murdered," said Senator Heflin, initially.
He followed up two days later, in the Senate, quoting an Alabama bootlegger
You know Secretary Mellon loaned the Republican National Committee $5,000,000 in 1920. Only $3,000,000 has been repaid. There is a deficit of $2,000,000. Jess Smith was charged with getting that money. The plan was to have the liquor men and the breweries contribute to this fund....
"That is one of the reasons," shouted Senator Heflin, "why they wanted to get rid of Jess Smith."
On March 12, 1924, Smith's ex-wife informed a Senate committee that Smith would consistently return to Ohio and relay information regarding Daugherty's financial crimes.