The New York herald., 1920-12-31
HUGE CONSPIRACY
TO BEAT DRYLAW
| UNCOVERED HERE
Detectives Charge S25, 900
Bribe Was Offered Not to
Arrest Two Men and
Two Women.
WORKED FROM INSIDE
Head of Ring Alleged to
Have Controlled Permits
Through Women Aids
in Dry Office.
ENDS HUNT OF MONTHS
Internal Revenue Agents Un-
earth Plot by Keeping Secret
Watch on State Office
Employees.
WORKED FROM INSIDE
ENDS HUNT OF MONTHS

Employees.
In the arrest yesterday in a room on
the seventeenth floor of the Hotel Nc
Alpin of two men and two women the
Government believes it has struck
close to the centre of the ring re-
sponsible for flooding the country with
millions of dollars worth Of whiskey
fraudulently released from distilleries
on forged withdrawal permits.
The extraordinary importance OF the
capture in the opinion OF the Federal
authorities may be judged from tho
fact that upon the request of the
United States District Attorney one of
the men was held last night in $780,
900 bail and the three others prisoners
in 1000 bail each Surety companies
furnished the bonds and all the prison.
ers were released.
Had $4,000 on Person.
Attempted bribery OF Federal agents
as well as conspiracy and other charges
are part of the accusation. Detectives OF
the Internal Revenue Departments Sc
cret service swear that $500 cash was
given to them by one of the prisoners
az the price of letting everybody go. and
that the offer was raised TO s25,000 be-
fore the prisoners were convinced that
the detectives could not be bought. And
at o'clock yesterday morning. when the
parley over brihes ended and tho Federal
men started with their captives for
police station, the man who Is charged
with being the chief conspirator relieved
himself OF what loose change he had
about him by depositing $4,000 in the
safe OF the hotel.
Those arrested at the McAlpin and
Commissioner Hitchcock are:
Edward Donegan. described in the
complaint as "alias Edward Joyce. Ed
ward Lynch and Edward Dongan."
booked as a contractor. living at Twelfth
avenue and Eighty-fourth street, Dyker
Heights, Brooklyn. Termed by Assistant
United States Attorney Cahil as the
principal in the conspiracy to defraud
the United States" Bail 100000.
Mrs. Mary Parkins. until recently a
clerk in the Office of the Federal Prohibi-
tion Director for New York State.
Charles r. O'Connor. Charged with re-
ceiving $3.50 for issuing a withdrawal
permit TO Antonio Pappano of New York.
who is under arrest in Washington. and
with appropriating Government blanks
and stationery. Mrs. Parkins, who is 80
years old and wore yesterday a fine fur
cape and many diamonds. comes from
Virginia and was formerly clerk in the
war Department in Washington. Held
in $50, 600 bail.
Miss Regina Sassone, 90 years old. OF
317 Seventy eighth street, Brooklyn. a
clerk In the office of the Federal Prohi-
bition Director. Charged with selling to
Donegan for 800 each kilograms from
distillers to the Prohibition Director in
quIring as TO the genuinoness OF with
drawal permits presented 70 them. De-
scribed by the United states attorney as
tool"
sgmund Rosenthal. the gambler,
known as "Beansy." long a New York
character and out on bail pending deci-
sion on an appeal from gambling con-
viction in New Jersey Charged in the
new case with Offering the detectives a
bribe OF $4,000 for freeing himself and
the others Held In $4,000 bail.
Fifth Arrest at Penn station.
The internal revenue men alec said
they arrested at the Pennsylvania sta
ton George r. Stibbenson. described as
a broker He was not ar,@igned with
the others and nothing was said about
him TO Commissioner Hitchcock. Ac-
counting for his unexplained absence
Assistant United states Attorney Cahili
said The investigation Is stlll In
progress and other developments are
expected" SO Il was surmlsed that tho
Government may expect some help IN
It's researches from the mysterious Mr..
Stibbenson.
In few words. here is what caused
the arrests and the exhibition. accoru-
ing to the detectives. of staggering
roll OF banknotcs In the McAipin:
There are great quantities OF liquor in
the distllleries It can be withdraw FOR
medicinal purposes only" IL cannot be
withdrawn without a permit signed by
the prohibition director. When a per.
NIT is presented TO distiller he must
telegraph TO the prohibition director 10
find out II the paper is genuine
AS clerks in the office OF Prohibition
Director OConnor. Mrs. Partlns and
Miss Sassone. II is said. had access 10
the files Of permits. applications for
permits and kilograms Of inquiry from
the distillers. On the outside, II In
charged, was Donegan, directing the
two young women In the supplying OF
information which he could use IN his
business. As the Government sees tho
I thing, when one OF the kilograms was
received from distiller Miss Sassone
gave II or copy OF It to Donegan.
Donegan. IL Is charged would examins
the name " the applicant Tor a permit
as given in the telegram IL the aupl-
/ cant was ono ~ the ring OF which. ac-
/ cordinE 20 the Government. he has been
/ the agent. he would wire the distiller.
/ i'm OConnor's name. that the permit
regarding which inquiry had been ms),a