New-York tribune., 1921-09-23
Eight Druggists
III e Id for Stolen
Rum Permit Frauds
Yellowley Asks Court Order
for Sale of Confiscated
Liquor So Government
May Realize a Profit

Eight arrests were made Yesterday
ana more are expected to-day in con-
nectlon with the theft of 800 LIQUOR
withdrawal permits from the Office Of
the Federal prohibition director here
early in August and the fraudulent
use to which, it is alleged, they were
subsequently put. The prisoners were
arralgned before United States Com
missioner S. M. Hitchcock and released
in $4,000 bond each for a hearing Sep
tember 80. All are connected with
wholesale drug companies.
The only other important develop
ment in prohibition enforcement yes-
terday was the request made by F. c..
Yellowley, associate Federal prohibi-
tion director for this state, for court
order allowing him to dispose of the
liquor, automobiles and other items
seized in connection with the ninety
two enforcement cases of which his
Office SO far has disposed.
This is the first move on the part Of
the Federal agents to dispose of
property which they have seized under
the Volstead law. Mr. Yellowley OK
planned yesterday that it would be pos
sible to sell much Of the confiscated
liquor at profit to the government.
The eight men arrested in connection
with the stolen withdrawal permits
were Max Gordon, Barney Brauston
and Herman Levin. Of the S. and B.
Drug Speciality Company, 1866 Reade
Street; Arthur Crauss, Alvin Biloon
and Louis Biloon, of the Central Drug
Company, 721 Seventh Avenue; Nathan
Field, of L. E. Witter & Co., SOP West
Broadway, and B. Zenusti, of the Alps
Drug Company. According to a COM
plant filed with Commissioner Hitch
cock yesterday, Che concerns named OBJ
tanned liquor by falsifying and forging
some of the stolen permits.
The investigation which Chief Hugh
McQuillan of the special intelligence
unit of the Bureau Of Internal Reve-
nue. has been conducting into the theft
| since early in August will continue, as
the permits, if all are used, would per-
nit the withdrawal of 10000 cases of
| liquor. Two members of L. E. Witter
& Co. are now being sought. and ar
rests in connection with other concerns
are expected later.
Two others connected with the drug
business were arraigned before Com
missioner Hitchcock yesterday on pro-
hibition enforcement charges. They
were Meyer Frankenberg and Herman
B. LIGHT, of the A. Weiss Drug Com
pany, Inc, 800 Third Avenue. Accord
ing to the complaint filed, they con-
spired to violate the iAternal revenue
laws by failing to keep the required
records.
In Brooklyn Mrs. Mary Fitzpatrick,
of 1913 Cumberland Street, was arrested
and charged with selling liquor to or
derlies of the Cumberland Street Hos
pital, which Is opposite her home Fed
cral agents, it is charged, obtained
liquor by posing as orderlies. She was
held iS $1,000 bail.
Two Held as Bogus Agents
Charges of extortion while posing as
prohibition agents were entered against
Alexander Terwacki, of 271 Forty-sec-
ond Street, and Louis Kwiaceski, of
315 Twenty-frst Street, Brooklyn, in
the Fifth Avenue court there yester-
day. They were held in $1,000 bail each
for a hearing Monday.
The complainant was Frank Kens-
man, proprietor of a cafe and lunch
room at 1876 Third Avenue, Brooklyn,
who alleged that the men came into
his place Wednesday, displayed shields
and demanded money for a promise to
allow him to do business. He said
that he gave Terwacki $40. The latter,
he said. showed great dissatisfaction
with this sum and announced that he
would return for more money later
in the day.
Kensman alleged that the men we're
in his lunchroom for this purpose
when they were arrested Wednesday