The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-10-05
Arrest of Henry Hohnemann
Reveals an Extensive
Conspiracy to Swindle
the Government.
PHREiCRTINB At A FOURTH
How the Scheme Was Discovered
and the Alleged Particle
pants Caught.

After months of diligent investigation
and detective work the United states
authorities believe they have at last uas-
covered the source from which a large
quantity OF Struggled phenacetine was
annually sold in this country The SNUG
glers have been at work several years.
but it was not until recently lnat their
operations were discovered.
Messrs. Schefflein & Co., wholesale
druggists or New York City, who repre-
sent the manufacturers OF phenacetine in
this country, found hat they could not
compete with other druggists who sold
the drug at greatly reduced prices. The
heavy duty on the import made it m
possible to place it on the market in this
country at a low figure. and it was evil
dent that smuggling was being done.
Messrs. Schefflein & Co. complained to
the United States authorities and investi-
cations were begun immediately. 1t is
estimated that the ~smugglers have de-
frauded the Government out OF thous-
ands of dollars.
In the arrest of Henry Hohnemann, a
young German. who, as stated in THE
News" was locked up in the County
Jail last Thursday, the United States in
spectors believe that they nave at last
unearthed the mystery. Hehnemann
was arraigned for hearing before United
States Commissioner Russ in Hoboken
yesterday afternoon, and was held for
trial in default of s., 500 bail on a charge
of being implicated in smuggling. Sena-
tor DAILY represented the prisoner and
United States District Attorney Rice APP
peared for the Government.
Hohnemann was formerly employed as
q porter in Meyers Hotel at Third and
Hudson streets. He left there a week
g saying that he was going West, but
the inspectors placed him under arrest
last Thursday, as he was just about to
board the North German Lloyd steamer
Kaiser William der Crosse for Germany.
Among the witnesses who appeared
against Hohemann was H. w. Moebus, a
wholesale drug salesman of No. S15 East
One Hundred and Twelfth street, New
York City. Moebus testified that he had
frequently made purchases of phenacetine
from Hohnemann, at very low prices. He
was not aware, he said, that the drug
was being smnggled. Frederick Klopen-
berg, another drug salesman of New
York. alleged that on September 13 last
he went to Hoboken with Moebus to buy
twenty pounds of phenacetine, which, he
said, he learned was being sold BY a GER
tain person in that city at an extremely
low figure. On reaching the Dukes
House, near the Hoboken Ferry, he said,
Moebus left him, saying that he was go
ing to make arrangements Tor the pur-
chase and would be back in a few min
utes. He averred that Moebus told him
when he returned that he had been to
see H-ohnemsnn, at Meyers Hotel, and
that the latter was to leave the phenace-
tine in August Liebhauser's saloon, at
No. 1as Washington street, where they
could call forrit-
The Government authorities had in the
meantime got a tip that struggled goods
were being left in Liebhauser's saloon,
and they kept q close watch on the place.
Inspector Scally testified that he saw
donnemann enter the saloon with two
bundles. He left the bundles behind the
lce oox in the barroom, and after buying
a drink walked off without any attempt
Delng made TO place him under arrest.
Scaily and several other inspectors then
entered the saloon and seized the bun
dies, which were found to contain twenty
pounds of smuggied phenacetine. made
up~in 800 grain packages. Hohnemann. it
Is alleged. met Klopenberg and Moebus
outside and made his escape.
S-aloonkeeper Liebhadser was placed I'M
der arrest on a charge of having smuggled
property on his premises. When he was
arradgned for examination. however. he
declared that he was ignorant as to what
the bundles contained. He said he had
often received bundle from fHohnemann
for various persons. but never inquired as
to was in them. The evidence
against Liebhauser was considered not
sufficient to hold him so he was released.
A search was then made for Hohnemann,
which cuiminated in his arrest on the
North German Lloyd steamship dock.
Moebus and Henry Thiemann. who is also
q AFr1U rdanlar nF No q9- INaGl. ~ ~
street, Hoboken, testified that they had
purchased various quantities of phenace-
tine from Hohnemnnn at "a a pound. The
actual value of the drug in this country is
$16 per pound. Moebus and Thiemann
both stated that they had received their
purchases from L~iebhauser's saloon. How
Hohnemann got the alleged struggled
property is still to be found out. The
Government inspectors believe that it was
struggled over by sailors on the German
liners. Interesting developments are ex-
pected before the investigations are com
pleted and more arrests will probably fol-
low. H-ohnemann was not permitted to
testify.