The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-03-22
CIGAR RAIDS May
REVEAL U. s. GRAFT
Wholesale Revenue Arrests
Expected TO Show I'M
munity Brides.
SYSTEM SAID TO BE WIDE

The arrests OF tobacco manufacturers
In this and other cities are expected to
lead to All investigation into charges
whispered yesterday to the effect that the
defenda nts for years have been violating
the internal revenue laws with the on
nivance Of Federal employees: that they
had paid tribute In return for mmun't!
Indignation among many OF the ninety
one persons arrested In Manhattan.
twenty-four In Brooklyn aud several In
Jersey Was intense. several OF them are
reported TO have expressed their readi.
ness to go before the Federal Grand
Jury and tell what they know about
graft among Federal employees. In
fact. they say they not only vii! tel
their stories bui they nave co~rroborating
evidence to s~ubstantiate their charges.
Federal officials. VINO refused Ia permit
their names to be Used. said they had
heard of the charges and that they cx-
pected to tee them presented IN written
form. They denied. however. that the
present Who'll sale arrests had been made
with the idea OF gathering Information
concerning collision OF Federal en-
ployees. II was reported yesterday that
conferences Of Federal officials on the
matter have been held In Washington
and that on Monday there was a con-
ference IN this city OF the acting score
tavy of the Treasury. John 4. Lowe, coll
lector OF Internal Revenue Of tho Second
district. and l.. u. Mutt. internal revenue
agent.
Tho story is that cigar manufacturers
paid from 81 to 50 to SO "A week to GER
! tain ,nen on the unde standing that thrN
would not Ice moleeted for using a second
or third time ,igar boxes with old reNc-
u stan,,s o. for fake Labels on certain
brands OF expensive cigars. or for ni"N''''
false returns to the Collector o' lnterhal
Revenue as to the nimbc If cigars tiey
, manufactured. other violations o. the
law from which they received immunity
also were mentioned
1t was learned yesterday that warrants
have been issued no, only fo- the small
manufacturer but also for several l'F'"
dealers. Arrests have been mad. III
plants having or hand as high as 2o""'-
200 CHARS. All the product has been
seized by tic revenue collectors. and the
total value is put ~ high a. s..o"".O 900.
Not alone cheap cigars have been sold
WIihou, payment Of the internal reNe'
nue. tax Of So a thousand, but certain
manufacturers hay. produced pseudo
Hoyos. Carolina perfectps and other .N'
! pensiye brands Whereas the genuine
| cigars IL these brands sell wholesale TO-
5000 a thousand. tho fake brands have
been offered A, tiJ0. The labels we're
mad. IN Germany
Assistant; United states attorney
Emilio Naselli, who has charge 81 th'
cases IN IN. southern District 81 Nc"
York. announced last night that ninety
one a-r.sts had been made. Assistant
District Attorney N,nc Smith Of Brook
Ign reported twenty -four arrests. II -
expected that AZ leas, $50 arrests viii IN
made.
Carl T.. Whi:ney. who is IN III. Office
Of Henry a Wise. attorney for the de-
PENDANTS. said last ,.ieht 'hat IN" ar
rests were "outrlreous and without JUS
t~tfcatioa.'
RE asserted that shops q; small manu-
facturerS were being closed. their stock'
coniiscated and before they can star
business again they must Civ. u n,A
bond and get a new license.