New-York tribune., 1919-10-23
Five Men, Three of Them
in the Employ of Chief
Flynn, Charged With
AcceptingSaloo Bribes
40 Others Involved.
Say Investigators
Immunity for the Sale of
Whisky Alleged for All
Who 'SPaid the Price"

Five men are under arrest--three Of
them members of the Department of
Justioe-in connection with a wide
spread investigation of grating that
permitted New York hotel and restau-
rant men to defy prosecution and sell
liquor at will
The arrests were made after secret
investigation by Chief William J.
Flynn, Of the Department of Justice,
who learned that vast amounts of
money were being paid for protection
in New York. Even a casual investga-
tion revealed the fact that many big
restaurants and cafes here were per-
mitted to operate unmolested while the
smaller and less powerful places were
forced to close their doors.
Government officials accused the five
men under arrest and others who are
more prominent of responsibility for
the lax enforcement of the wartime
prohibition act here. 1t is alleged that
inside aid from the Department of Jus
t1ce has enabled the sale of liquor to
be conducted freely in the favored
places.
NAOAS A1soh OACy
More than forty restaurateurs and
the Federal District Attorneys Office
and a prominent Republican politician
of New York are involved.
The men already under arrest are
Charles P. McCarver, William j. Pol
ling and Pasquale Pignuodo, Of the De-
partment of Justice; Richard Yancey,
long the chief OF the narcotic squad of
the Internal Revenue Service, and Nor
ton P. Allen, a volunteer informer for
the United States Attorney, who lived
until recently in Nashville, Tenn.
Agents of the department arrested
McCarver at the Pennsylvania station
yesterday as he was boarding a train
for Nashville. Polling and Pignuodo
were arrested when they reported for
duty in the morning. This was the
first intimation that they were under
suspicion. The arrest of Allen and
Yancey took place Tuesday night at
the Hotel Commodore, where they have
rooms.
Enormous Sums Paid
Chief Flynn and John Minton, jr.,
special government prosecutor, declared
that enormous sums of money had been
paid by the favored liquor sellers for
protection, but whether any of it went
to any of the prisoners they declined
to say.
"All q! can say at this time" said Mr..
| Mlnton, "is that large number of
witnesses have been summoned before
an extensive conspiracy exists. The
arrests speak for themselves.
"Liquor has been sold promiscuously
because immunity has been bought and
sold. But that day is over and the
lid will be clamped down to-day as It
never was before"
The five prisoners are charged with
violating Sections 80, 1T and 145 of
the United States Criminal Code, which
deal with conspiracy to defeat the Fed
eral law, and with bribery. The pun
ishment may be fine of $4,000 or
| two years Imprisonment, or both. The
prisoners are alleged in the indictment
to have entered into an arrangement
to give liquor dealers immunity from
prosecution if they paid the price.
Warning for Proprietors
1t is alleged, also, that if the crooked
! agents we're unable to prevent raids
being made upon protected places the
proprietors of such places were to re-
ceive warning.
Arthur Mclean, proprietor of the
Hunters Island Inn, in Wcstchester
County, and Timothy Shine, proprietor
proprietors mentioned in the papers.
There is no accusation against either
of them, but the alleged Crafters are
said to have met them both either at
their places Of business or at the Com
modorc.
Since Allen and Yancey embarked on
their career as fxers on September
29, it is asserted, they entertained the
other defendants and various hotel
nt and "a T. rat ut
Hotel Comm odore.
Fifteen minutes after the indict-
ments were handed out at / o'clock
yesterday afternoon all the defendants
except McCarver were arraigncd be-
fore Judge Learned Hand in United
Statcs District Court.
Calls Yancey Guiding Spirit
Mr.. Mntoh declared that Yancey
was the guiding spirit Of the conspira-
cy, and asked that he and Allen, his
right hand man, be held in $4,000 bail
each. Bail for the agents, he asked, be
fixed at $4,000 each.
None Of the prisoners had counsel
or appeared TO wish any. Yancey,
( acting as spokesman, insisted that such
hail wag too high. Judge Hand fixed
Yancey's bail ut $4,000 and Aliens at
$4,000 and directed that the others be
held in $500 each.
In view Of the fact that the men
we're without lawyers, Judge Hand
Ravc them the privilege Of going freely
about the Federal building and using
the telephone in an effort to obtain
bondsmcn.
Chief Flynn himself took personal
charge Of the investigation which re-
Continued ON DGOe sic