The Washington times., 1915-06-08
Other Arrests Expected to Fol-
low Expose Of 100000
Scandal in Southwest.
MEN HIGHER UP SOUGHT
Most Under Arrest Are of Slight
Importance, But "Chiefs'
May Come Soon. .

Sixteen distillery employees and Gov
ernment agents have already been ar
rested following the expose Of the al
legged 100000 revenue fraud at Fort
Smith. Ark. and Kansas City. Mo-. in
connection. with which John L. Caspar,
dlstillery president, is under arrest, and
Knox Booth, internal revenue agent for
the Tennessee-Alabama district, Is be-
ing sought as a fugitive from justice,
as was told exclusively in The Times
yesterday.
other. arrests may follow in the next
few days With few exceptions. the
Government employees taken into Gus
tody were storekeepers and gaugers.
Special agents of the Department Of
Justice and Of the Treasury Department
now are seeking the men higher up.
Internal revenue officials now are
bending their efforts, in inquiries in the
virginia-North Carolina district. where
there have been alleged frauds covering
a number Of years. Belief was express
ed. however that certain alleged crook
ed practices throughout the South
terminated suddenly with the first ex-
pose In connection with the Arkansas
distillery. The last case of alleged
.'blockading" that came to the notice
of the department was in connection
with a Virginia. firm.
May Have Fled.
1t is feared by Government officials
that Knox Booth has left the country,
though all of the gulf ports have been
closely watched since his disappear
ance. Booth left a wife and family
behind him in Nashville. 1t Is said.
Government secret agents are work
ing on the theory that Booth and G.
L: Hartman. who disappeared after
giving $4,000 bond for preliminar ry
hearing in Kansas City. are together
though they can not fathom how the
two :nen Joined forces. Hartman was
Smith distillery. The company operat-
ed rectifying establishment and
distributing plant in Kansas City.
Thomas r. Stone, Of the Baltimore
Washington, has gone to Nashville to
take over the office Of Knox Booth
temporarily. He will be relieved al
the Nashville headquarters by E. c.
Ielloeley, who has been in charge OF
the Texas district with heaquarters
at San Antonio.
Government agents working on the
case, have come into possession OF
much correspondence. which. 1t is al.
tween Caspar and Hartman and
Revenue Agent Knox Booth. In one
letter. Government officials say
Booth wrote to Caspar that every
burned up and destroyed" Another
phrase. 1t Is alleged. was you ali
must clean up now and quit" This
letter; 1t is said. was written at the
time David A. Gates was called back
mot. the service as agent in one
newly aligned Arkansas district. and
Arkansas was taken out Of the dis.
trict presided over by Booth.
"Most Dangerous Man"
Bearing on the big cleanup of crooked
distillers and Revenue Service employel
back In 1907. said to have been stoppsr
before we'll under way. there is refer
ence in another letter alleged to hav,
been written by Booth and signed will
a fictitious name, to David A. Gates a.
the most dangerous man in the United
States"
you will recall" the letter says. 9Th,
Virginia days. when Gates was there
and know he Is never satisfied unles
stirring up something"
This was in connection with the in
formation, conveyed by Booth to Cas-
par, that Gates had been recalled to tn
service by Commissioner Osborne afte
resigning following the collapse OF hi
efforts in 1907 and 1905. and warninI
Caspar what to expect. With Gates re
turn, change was made In the dis
trtct, Arkansas being taken fror
Booths Jurisdiction and the revelation
that resulted in the arrest OF Caspa
and the suspension of Booth begun
While 1t Is the opinion that the pres
ent expose has stopped crooked prac
tices that were carried on on such
wide scale that the loss to the Govern
ment has averaged $1,000 900 syear 70
ten years or more, 1t Is said not to b
the intention to let the matter res
there. 1t is known that the Justice De
partment is carrying on an investiga
ton with a view to establishing re
sponsibility elsewhere than on tn
small-salaried gaugers and storekeeper
who are Immediately to blame.