The New York herald., 1921-12-31
100000 WHISKY
FRAUD IS DEFEATED
Warehouse ProprietOrs Turn
Tn Doubtful Permits for
Withdrawals.

Fraudulent release of 81 100000 worth
Of liquor was prevented yesterday by
proprietors of warehouses in the city.
They had read of the revelation on
Thursday of vast plot to forge per-
mits and they besieged prohibition head
quarters with permits the authenticity
OF which they doubted.
In all. Is counterfeit permits were de-
tected in the office of Ralph A. Day,
State prohibition director. The eighteen
permits called for the release of 10000
cases of rye whisky All were dated the
same day. December 81, and were drawn
on New York warehouses. In six in
stances the purchasers. all of whom used
fictitious names, gave Philadelphia ad-
dresses. The remainder originated in
New York.
Hugh McQuillan, chief of the special
Intelligence unit Of the Internal Revenue
Bureau. who is investigating the con-
spiracies, said yesterday he believed
their scope was nationwide, and that
the real extent of the efforts TO get
liquor through counterfeit and forged
permits could not be even guessed at
until something was learned of the OK
tent to which the frauds were being
T.racticed In other States.
Mr.. McQuillan is of the opinion the
bootleggers who make use of the coun-
terfeit permit scheme do not operate
through a central printing establish
ment, but that in addition to big plant
located probably in this city, there are
scores of ohers through the country.
1t was stated also by Mr.. McQuillan
that without doubt numerous ware
houses in various parts of the country
actually were owned by bootleggers.
Ay 70 adN i
rector Day and Col. Catrow, his as
sistant, that these conspiracies by use
of counterfeit papers were being car
rIed on in such manner that no docu-
| inents whatever reach the directors Of
flee, because the bootleggerS had gone
so far as TO arrange for the intercept
ton of registered mail. Mr.. McQuillan
said such a scheme was both possible
ard likely.
The first inllling the authorities had
that counterfeit papers were being used
for the illegal withdrawal Of whisky
came last month when General Agent
Harold Dobbs arrested two women
charged with selling to Dobbs and an
! other agent a set of counterfeit with
drawal papers for $4,000. These papers
were poor in quality and 1t was thought
at the time the scheme was restricted
largely to a form OF bunco game in
which the victim was leo 10 SuppOSe ne
could obtain liquor by this means. al
though the papers were really not good
enough to get by.
The agents at the same time. In con
nection with the same case, seized a
letter of confirmation purporting to come
from the directors office, on which was
forged the initials of L. C. Yellowley
then in charge of New York headquar-
ters.
What has occurred since Is a rapid
growth toward perfection in the manu-
facture of counterfeit papers, and au-
thorities are at loss to place any esti-
mate on the amount Of liquor that may
have been released through their use.
Hundreds of forgeries, Mr.. McQuillan
said, have come into his hands during
recent months In addition to the coun-
terferts which have just come under OBJ
servation.
Another scheme by which bootleggers
are securing alcohol and liquor Illegally
was described by Director Day yester-
day, which. although not so extensive as
the other, is one in which many of the
biggest and most reputable distilleries
and warehouses are the victims.
In many cases carloads Of liquor or
alcohol are shipped from Canada to the
Bahamas or Bermuda via New York
These shipments are stored at times for
many weeks in Now York warehouses
Bootleggers working in collusion with
employees Of these warehouses move the
goods i'm barrels from the warehouses
ard replace them with barrels filled with
water