The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-04-05
NO WARRANT YET
FOR PHIL KELLY
Liquor Dealer Treats Charge
Against Him Lightly and Ex-
poets Little Trouble.
HEAVY LOSS IN TAXES
Charge That Government Has
Been Defrauded Out of
Large Sums.
HEAVY LOSS IN TAXES

No warrant or summons on the in
dictment of one hundred and nineteen
counts, charging the Phil q. Kelly
Company with receiving thousands of
gallons OF whiskey on which taxes had
not been paid, was served on Mr.. Kelly
Tuesday. Mr. Kelly said he did not
believe the warrant would be served
for several days, if at ALL and that he
did not believe any bond, or more than
a nominal bond, would be required OF
him. ----
Although District Attorney Lewis.
! Assistant District Attorney Talley and
revenue officers say the case when
tried in court. will disclose the most
stupendous scheme to defraaid the Fed
! eral government of revenue that has
been unearthed in many years. Mr..
| Kelly and his attorney, Harry M.
Smith. declared Tuesday that they felt
I absolutely secure A4s their position, that
| they would mako firm stand and
| hard fight. and expressed the belief
! that they would triumph over the
technicalities. upon which they say all
Of the one hundred and nineteen counts
of the indictment are based.
Working On II Long.
| The voiuminous indictment was re-
| turned by the grand jury, of which
s. ID. Creushaw is foreman, after Mr..
| Talley had offered evidence for three
hours Revenue Agent William II.
Chapman. Deputy Agent c. p. Carter,
and special employees Michael J. En-
| right and Samuel t.. Chapman. of the
| revenue service, who are said TO have
! been working -the-ea since hast
| October, were the witnesses.
| One hundred and fourteen of the
! counts i'll the indictment charge that
Mr.. Kelly. operating as a recttfer and
retailer of whiskey, received various
quantities Of Nhiskey on which the
required tax had not been paid and
did not make entries as stipulated in
the Federal statutes.
That quantities of the alleged
Illicit product We're transferred to Nc
Clure and Sullivan, retailers, In vio-
latiou of the law, Is alleged in three
OF the remaining counts The other
two counts charge that 2o,600 gal
Ions OF whiskey were eceived by AIR.
Kelly from the Darbytown Distilery,
OF Henrico county, when he knew
that the government had received no
tax on II.
Handled Unlicensed Liquor.
1t is understood that for mans
months agents OF the revenue ser
vice have been watching Mr.. Kelly y
establishments and the dis,ilieries
from which he received whiskey ana
that day and data on the transpor-
tation of wagon loads OF unstamped
whiskey To mis- place VIII ba given
by the investigators when the tria'
begins. Mr.. Kelly said Tuesday thai
he had no knowledge of the fact
that his pace and wagons were being
] trh Even ~ | had | cOuiu
not have done anything, or altered
my course said Mr.. Kelly. II was
not violating the law and have not
violated the law The indictment Is
based on technicalities which we will
meet at the proper time"
Although II WAS reported that the
Kelly case was an entering wedge,
and the beginning OF campaigs
against distilleries and dealers be-
same alleged Illegal lines he is sale
to have followed Assistant District
Attorney Talley and the revenue OFF,
GERS said this was not true and tina,
so far as they knew no other indtct-
ments of te same kind would be ask
ed for at this term of the United
States district court
Loss OF 1000 Tax.
The essence OF the indictment !!
that the Kelley Company acted a.
distributor for number OF distH
leries in the neighborhood of Rich
mond. and marketed something hk,
100000 gallons of whiskey on which
the required tax of s1.20 galIor
was not paid. thus defrauding th'
government out Of about 1920 600.
The case probably will be tried be
fore Judge whddill about April Is
or go over until the next term o.