Omaha daily bee., 1920-06-24
Charles Murphy Charged With
Attempt to Defraud U. S. by
False Tax Returns and Effort
To Intimidate Manufacturer.
ASSISTANT DISTRICT
ATTORNEY ALSO NAMED
Action Grows Out of Alleged
Threats to Prosecute and
Expose Life of Louis Hertog,
Wealthy New, York Resident.

New York. June 23.-Indictment
of Charles F. Murphy, leader OF
Tammany hall, and five others on
charges Of conspiracy to defraud
the United States by falsifying in
come tax returns and attempted in
timidation of Louis N. Hartog, a
wealthy manufacturer, y through
criminal prosecution. was announced
here today. The indictments, which
were returned secretly Blythe extra
ordinary grand jury yesterday,
came as great surprise Murphy
is now on his way to the democratic
national convention at San Fran
cisco.
Others indicted with Murphy were
Assistant District Attorney James
E. Smith, on OF the central figures
in the vice war" between the dis
trict attorneys office and the police
department; John A. Mccarthy, fpr-
mer business partner Of John Muir
ply. brother of the Tammany ball
leader; Arthur ]. Baldwin, lawyer:
Ernest B. Walden, vice president Of
the Corn Products company and the
Corn Products company itself. Bail
for each defendant was fixed at
1000.
Charged Against Murphy.
Murphy is charged with trying
TO intimidate Hartog into settling
a $l0,000,000 damage suit brought
against the Tammany leader after
the latter is alleged to have with
drawn promised financial support in
a glucose product firm in which
Hartog was interested. The indict-
ment alleges that Murphy threatened
to accuse Hartog of arson, to ex-
pose to his wife alleged secret re-
lations with another woman. send
him to jail for offenses he did not
commit and ruin his business.
Hartog, the indictment sets forth,
procured a 100000 order for his
product from the British govern
Inent during the war. He found dif-
hculty in acquiring the necessary
amount of glucose to complete the
order He then enlisted the aid of
Murphy, through whose influence,
the indictment recites. the needed
were obtained from the
Corn Products company.
Disagree, Over Business.
Hartog and Murphy later dis
agreed over business matters and
Murphy sued Hartog to- recover
Sl25,000 invested in the manufactur-
cr's company. Then Hartog sued
Murphy, the Corn Products COM
pany and Baldwin to recover $l0.-
100000 profit he said he had los:
through withdrawal of Murphy's
pledged support, asserting he no
longer could get glucose from the
Corn Products company.
Hartog was summoned to Assist
ant District Attorney Smiths Office
while these court actions were pend
ing. Hartog alleges Smith sum-
noned him to force him to pay Muir
ply his $l25,000, but Smith claims
he issued the summons for Hartog
solely in the interest of prosecution
Of sugar prohteers. Hartog's brother
was fined $1,000 in federad court for
sugar prohteering, but Smith gave
Hartog himself clean bill.
Estimated Big Profits.
The indictment sets forth that the
agreement between Murphy and
Hartog shows all increase from
$4,000 to Sl,OOO,000 in the capital
stock of Hartog's firm, the North
Refining company.
When Murphy and Hartog, it is al
legged, became jointly interested in
the business in April, 1918, profits
of the business subject to war tax
were estimated at $l000,00O year.
The indictment charges that on
April S, 1918, in order that Murphy
should obtain a larger income and
a quick return on his investment
James E. Smith and others unlaw-
fully and corruptly combined to de-
fraud the government of moneys due
it by filing with the collector of
revenue, misleading and
false entries as to- the records of
the business.
The. name of James J. Hines,
democratic leader in the eleventh
assembly district, New York. was
among the witnesses listed in the
back Of the indictment.
Trne 22 was set as the date for