The New York herald., 1921-11-11
Travels to Europe to Look
After Patents While Free
on $25, 900 Bail.
FACES BIG CHARGES SOON
Two Women Under Arrest as
Aids of Man Accused in EX-
tensive BOotlegging.

Two years ago, just before national
prohibition went into effect. Edward
j. Donegan of 1921 Twelfth avenue,
Brooklyn, earned his living doing odd
jobs along the waterfront.
Last January he was indicted by
the Federal Grand Jury in Manhattan
as the alleged leader in one of the
biggest bootleg conspiracies that has
come to the attention of Government
agents since the Volstead act became
effective. And yesterday. when Fred
erick l.. Kopff, Assistant United States
Attorney in Brooklyn, where Donegan
order from the Treasury Department
in Washington to foreclose a lien on
some property of Donegan's, it vas
learned that his income during 1920
Government s1,653,797.25 in income
taxes and penalties for failure to make
a return.
Mr.. Kopff said he was informed by
the first in which the Government has
investigated the. income of any per-
son against whom it is charged that
his earnings were in whole Or In part
the result of bootlegging operations.
The discoveries made in Donegan's
case, it was stated, will lead the In
ternal Revenue Bureau to a rounding
up of many other instances in which
similar findings are expected.
(, 1t could not be learned last night
what proportion the penalties compose
of the sum Donegan must pay the Gov
ernment, or what is the amount OF in
come on which he is being taxed.
Trial Soon to Come Up.
Donegan's trial on charges of con-
spiracy to violate the volstead act and
attempted bribery of Federal officers ia
scheduled for this month in the Federal
Court for this district. He returned re-
Gently from a trip to Europe, while free
under $4,000 bail. 1t was when he
made application for permission to go
abroad last July, and having obtained
the consent of the Federal Court in
Brooklyn and in Manhattan applied for
his passport, that the income tax divi-
sion of the Internal Revenue Bureau be-
came interested in his case. He said at
the time he wanted to go to Austria
to look up some patents he was inter-
ested in.
1t was found that he had filed no in
come tax either in Brooklyn, his place
OF residence, or in New York, where. It
Is charged, the business or the boot
Logging ring of which he is believed to
have been the head was carried on
The Internal Revenue men seized papers
belonging to Donegan, which they said
indicated the extent of his business
dealings. They reported finding in these
the financial details OF his operations
over a period Of several months during
1920. They struck O monthly average
and compiled their figures for the year.
In addition to the indictments already
pending against Donegan, Mr.. Kopff said
he would probably be made the defen-
dant in a criminal action based on his
failure to make an income tax return
Hugh McQuillan. chief of the special
intelligence unit OF the Internal Revenue
Bureau, whose agents made the arrests
in connection with the bootlegging oper-
ations with which Donegan Is charged.
believes that Donegan carried on his
own shoulders the far reaching ramifi-
cations OF the alleged liquor conspiracy,
and that he shared the immense profits
of the game with no one except two
women who were indicted with him and
who, it is thought, received only a small
proportion of the earnings.
McAIpin Ten Party Ring.
Donegan and his companions COM
posed what was described last winter as
the McAlpin tea party ring" With
Mrs. Mary Parkins, who is under sev-
eral indictments, and Miss Regina sas-
sone, both of whom were clerks in the
office of Charles r. O'Connor former
state prohibition director. Donegan was
arrested In the hotel December 30, 1920.
after. according to the agents who made
the arrests. he had passed them a brjbe
OF s6,500 as the price OF letting every
body go. The agents sale that "Beansy''
Rosenfeld gambler. whom they arrested
with Donegan. offered $25.000.
The Federal authorities say that
Donegan carried on business from the
hotel AZ IL he were the prohibition direc-
tor. obtaining copies of kilograms from
the clerks In O'Connor's office, in which
distilleries asked for confirmation OF
liquor permits, and then giving con,
hrmation himself under O'Connors sig
nature IL the consignees were members
Of the ring for which he acted as agent.
1t is also charged that he dealt in
forged permits.
Investigation of Donegan's personal
affairs since his arrest, the Federal au-
thorities say, has lea to the discovery