The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-31

Wis ali TlsHt- ~ Inc dppiCanS uiu hot
enjoy confidential relations with Done
gan. II is charged. he wired that tho
permit was bogus. II is also charged
that permits were forged.
Thus. according TO the complaint OF
the Government. Donegan. from his
room in the McAlpin. pretending that
he was Prohibition Director O'Connor.
kept his pen and the wire busy, direct
ing the stream Of alcohol in its abnor-
NAL flow and shutting 1t off when he
felt like H.
Donegan. under the name of Lynch,
had room 1878 in the McAlpin. Mrs
Revenue agents. had room i775, adjoin-
Ing. AS TO Mrs. Parkins's alleged ac-
uvlties. more is TO develop later. In
her room. the detectives say, they found
fifty envelopes belonging to the In
ternal Revenue Department. 100 letter.
heads of the Federal Prohibition Direc-
tor and a number of basic permit
blanks and applications for withdrawal
permits.
RosenfeId Protests Innocence.
Beansy Resented asserts that he is
the innocent bystander of the case. On
Wednesday evening. ne says. he had
date to meet his old friend Mr.. Done
gan, in the latter's room In the McAlpin
and accompany him thence to the prize
fight in Madison Square Garden. Keep
ing this innocent engagement, he says,
he walked right into the middle OF the
raid
For months the hunt for the forgers
and distributors of fraudulent with
drawal permits has been carried on
In nf
whom the Bureau OF Internal Revenue
sent to New York while ago in charge
of its secret service. The centre OF
his spiders web Is the Federal Build
ing. His agents on this job were George
E. Golding, Walter p. Murphy and
Frank j. Seib. They have been watch
Ing the employees of the Federal Pro-
hibition Director. They discovered.
McQuillen said. that Mrs. Parlins. al
though her salary, like, that of Miss
Sassone, was only s1.440 year. had
room with bath at the McAlpin. wore
expensive clothes and rode much in
flossy automobiles.
At 9 o'clock on Wednesday night the
three secret service men called at Mrs.
Parkins's room and found there Mrs.
Parkins, Miss Sassone and Donegan.
AS the Internal Revenue men tell the
story, Donegan had the two women go
into his room. accompanied by Detec-
tive Seib. and then began talking about
money to Detectives Murphy and Gold
ing. They quote him as saying;
Now, I'm a regular fellow and you
look like regular fellows, and / want
to square this thing. How about two
grands and five?"
I'm not on to your New York
slang" said Golding. whats
'grand?"
"A thousand dollars" Donegan then
said, according to Mr.. McQullen, that
he meant business. and finally said he
would give up $500 50 that the detec-
tives might go away and forget the
evening. He produced a roll or bills,
counted out $500 and placed it on
chair between Murphy and Golding. ac-
cording % the Governments men. One
of the detectives picked up the money
eventually and has turned 1t in as evil
dence. But first they assured Donegan
that he had made a mistake IL he
thought them to be merely local agents.
and showed their commissions as agents
working under Washington.
They say that Donegan then said he
was willing to go as high as $4,000.
and made several suggestions as to how
the transfer could be- accomplished. pro-
posing one OF the methods that he slip
the money into the overcoat OF one OF
the detectives, They made no reply but
searched Mr.. Donegan and found .32
calibre revolver and a Kings county
deputy sheriff's badge, they said.
Found situation Embarrassing.
Meanwhile Beansy Rosenfeld had ar
rived. In his pocket detectives say
they found three liquor withdrawal
permits purporting to have beer,
70 RnaGnfAln
They also say he threw a memorandum
book behind a trunk, but the Federal
men got it, Rosenfeld Is then alleged
to have said
"Well, gentlemen. you place me in an
embarrassing predicament. I'm gam
bier and have dealt with all sorts OF OFF,
Gals. state. Federal and city. l want
this thing fixed up. Now. have little
money with me at the moment, but can
get plenty. / could easily give you as
much as your salaries would amount to
for two or three years and nobody would
ever be the wiser"
So. according to Mr. McQuillen. Gold
Az and Murphy separately talked with
Rosenfeld, and the sum named was
25.000.
That's a lot of money" whistled
fosenfeld, according TO the-Federal men.
but I'm no rat. Nobody's ever got into
TOuDle through me. 4 II ldhe yVu DVS y
into business with me-"
with the idea OF getting all the facts
straight as to the offer OF money, the
detectives and Rosenfeld and also Done
gan, they say. argued the thing until
nearly o'clock yesterday morning.
Then the detectives told Rosenfeld.
Donegan, Mrs. Parkins and Miss Sas-
some that II was time to go 10 jail.
The detectives say they found IN
pocket of Donegau's overcoat copies OF
fifty kilograms sent by distillers to Pro-
hibition Director O'Connor. and under a
bed in Donegan's room batch OF copies
OF kilograms sent by OConnor TO dis
tlllers,
The Assistant District Attorney. David
V. Cahill asked that high bail be fixed.
These two women" said Mr.. Cahill.
have said that no matter how high the
bail. they would jump II and skip out.
Internal Revenue men said that the
fraudulent permits and forged kilograms
already In their possession as a result OF
the visit to the McAlpin represented the
illegal withdrawal Of about $500. 1000
worth OF liquor. and that the sum Of the
entire Withdrawals in which Donegan
and his associates are believed To have
figured runs far M into the millions.
The only telegram specifically mentioned
IN the complaint as having been taken
from Prohibition Director O'Connor's
files by Miss Sassone was sent on De-
cember "a to O'Connor by the New York
and Kentucky company.