Arizona republican., 1920-06-24
TAMMANY CHIEF FALS|F FED TAX
 RETURNS, CLAIM
Charles F. Murphy Indicted With Five Others On Charge of Conspiracy to Defraud Government; {; Now En Route to 5. F. to Attend Convention
TRepubIican A. p. Leased Wirel

NEW YORK, June 23-1ndictment of Charles F. Murphy, leader of Tammany hall, and frye others in charges Of conspiracy to defraud the United states by falsifying income tax returns and attempted intimidation of Louis N. Hartog. wealthy manufacturer through criminal prosecution, was an nounced here today. The indictments which were returned secretly by the extraordinary grand jury yesterday came as a great surprise. Murphy IS now on his way to the Democratic na- tional convention at San Francisco.
 Others indicted with Murphy were Assistant District Attorney James 5. Smith, one of the central figures in the vice war" between the district attor- ney's office and the police department; :;
 John A. Mccarthy, former business partner of John Murphy. brother of the
 Tammany leader; Arthur J. Baldwin a lawyer; Ernest B. Walden, vice pres- ident of the Corn Products company, and the Corn Products company itself.
 Bail for each defendant was fixed at s1,0Oe
 Claim Murphy Threatened Bribery Murphy is charged with trying to intimidate Hartog into settling $1O,- GOO, 900 damage suit, brought against the Tamfnany leader, after the latter is alleged to have withdrawn promised financial support in a glucose product " The indictment alleges that Murphy threatened to accuse Hartog of arson. to expose to his wife his alleged secret relations with another woman, send him to jail for offenses he did not com- init and ruin his business.
 1 Hartog the indictment sets forth, procured a seven million dollar order
 for his product from the British gov ernment during the war. He found diff ficulty in acquiring the necessary amount of glucose to complete the or 1 der. He then enlisted the ard of Murphy. through whose influence, the indictment recites, the needed ingre-
 dient was obtained from the Corn Pro- ducts company. Hartog and Murphy l later disagreed over business matters and Murphy sued Hartog to recover l SIPS, 900, invested in the manufacturer
 company. Then Hartog sued Murphy the Corn Products company and Bald
 win to recover s10.000.0o0 profit he said | he had lost through withdrawal of | Murphy's pledged support, asserting he | no longer could get glucose from the l Corn Products company.
 1 HarfSg was summoned to Assistant 1 District Attorney Smiths office while these court actions were pending Hartog alleges Smith summoned him l to force him 10 pay Murphy his S125, 900, but Smith claims he issued the
 summons for Hartog solely in the in ! LSFcSL OI DFOSetrdIlOn OI SuBdE IEOAl- 1 teers. Hartog's brother was fined
 s5.o00 in federal court for sugar profi- teering. But Smith gave Hartog him. l self clean bill.
 Alleged Falsified Tax Entries The indictment sets forth that the l agreeTent between Murphy and | Hartog shows an increase from S10,00C
 to s1.r00. .o00 in the capital stock oi
 HartoCss firm, the North Kensingtor
 Refining company. When Murphy and
 Hartog. it is alleged, became jointly !n-
 terested in the business in April, 1918
 profits of the business. subject to wal 1 tax. were estimated at $1,00o.000 a year
 The indictment charges that or
 April ,. 191f. in order that Murphy
 should obtain a larger income and 2
 quick return on his investment, James F. Smith and others unlawfully and l corruptly combined to defraud the government of moneys due it by filing
 with the collector of internal revenue misleading and false entries as to the records of the business.
 The name of James J. Hines, Demo 1 cratic leader in the eleventh assembly | district, New York was among the 1 witnesses listed in the back of the in dictment. June 2S was set as the date for pleading.