The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1910-04-14
APPEAR TO HAVE e
STUCK UNCLE SAM
Phil. G. Kelly Company Indicted for
Alleged Frauds in Matter of
Liquor Tax.
RICHMOND VA

II - II M ~ N ~, va. - Special. -
What may be called small ocean
OF booze is involved in q Voluminous.
119-count indictment, which was un-
expectedly launched Monday after
noon by the grand jury of the United
States District Court against the Phil
G. Kelly Co, Inc, of this city.
This concern in ia counts of the
Indictment is charged with receiving
various quantities of liquor on which
taxes nave not been paid, without
making the entries required by law.
In other counts. it is alleged that
quantities OF Illicit whiskey were
transferred. in violation of the stat
uteS, to Mcclure & Sullivan, retailers
TWO counts charge that the Kelly
company accepted 20,60O gallons of
whiskey fro mthe Darbytown Distil-
iery. of Henrico county. with the full
knowledge that the tax on the spirits
had not been paid.
1t would take good deal OF perse-
Nerance. not to say technical knowl-
edge, TO grasp the full significance
OF the ponderous indictment but even
n iayman can see that IL seemingly in
dicateS the detection OF what is be-
lieVed TO be a gigantic scheme to de-
fraud the Government
would appear. too. that others
besides the Kelley Company are in
volved. though the Federal officials
are reticent as to this.
The indictment came yesterday with
sensational suddenness and develop
ments OF n startling anture are ex-
pected to follow. Just how far-reach-
ing they will be no one seems to know.
1t is admitted, however, that YES
teCday's action OF the grand Jury is
the sequel OF Investigations, for the
most part made since last October nv
Revenue Agent William II. Chapman,
deputy Agent c. =. Carter and Spe-
cial Employees Samuel +. Chapman
and Michael ]. Enright, of the revenue
service.
Did Things on Big Scale.
All signs point to the fact that the
operations OF the supposed offenders
have been conducted on an enormous
scale. and IL may be that other dis
ttllers and retailers will be called
upon to explain.
Assistant District Attorney Robert
II. Talley. who drew the indictment
and who sat yesterday with the grand
jurors. Is not yet at liberty to discuss
of tremendous importance.
it's full significance. He admits, how
ever. that the impending action is one
This much, however. can be seen
even by glance at the Indictment
The 11Sth count Of the bill! against
the Phil G.. Kelly Company. which IL
probably the most important. charges
that the Phil G.. Kelly Company Inc.
is rectiher. and that IT received and
purchased 16.5OO gallons of distilled
spirits. from August 81. 1909. 10 Feb
ruary 2S, 1910, and caused IL to be
removed from the Darbytown Distil-
lery TO place other than TO the dis
tillery house provided by law. and
that it knew and had reasons 20 be-
lieve that the tax had not been paid.
BY certain Of those interested in
prosecuting the alleged violator, the
charges contained in the last two
counts are openly referred TO as a
conspiracy TO defraud.
The final count alleges that the Phil
q. Kelly Company purchased, re-
ceived and rectified 1000 gallons OF
whiskey between March l, 1910, and
March 30. 1910, from efIS -Daf DyC0-,sa
Distillery. knowing and having req
GodS 10 believe that the tax had not
fbeen paid.
The 115th alleges that the Phil C.
pKelly Company. Inc. charged TO it
self for retail certain packages bear
ing its rectifier's stamp, when. in fact
the packages were not charged TO and
used by the Phil c.. Kelly Company
but were sent to Mcclure * Sullivan
retail liquor dealers, and went into
possession of that firm.
The l16th and nth counts specify
the quantity of whiskey transferred
and the allegation is that. without
nrst making entries. the Phil C. Kelly
Company transferred distilled spirits
TO Mcclure Il Sullivan without first
making entries, as required by law
Did II Act As Distributor?
~ WO0AO appear rum the lnQlCl-
ment that the Kelly Company is sus-
pected of having acted as a distrib-
utor for certain distiliers operating in
the vicinity OF this city, who have ap-
parently evaded the laws and lodged
the Federai tax of $I.1O n gallon.
In connection with the prosecution
OF the Phil @. Kelly Company, it is
deserved that no legal action has been
oil red against any distillery; but il
is satd that several OF the Henrico
diStilieries are in arrears, and that
against one of them an assessment of
between $4,000 and $4,000 las been
made to defray shortages in the pay
ment of taxes to the Government.
1t is understood that much credit
for the disclosures is due Major NJ. J.
Fright former United States Deputy
Marshal under Morgan. Treat, who was
detailed to investigate and who filed
a written report.
1t is not intimated that any official
has been derelict in his duty, but on
March 31st. Commissioner of Revenue
Royal +. Caben addressed to the rev.