New-York tribune., 1921-01-07
$3,OOO,OOO Worth Has
Come Into New York in
Last Week, 1t Is Disclos-
ed at Federal Inquiry
New Arrest Made
On Bribery Charge
Surety Company Agent Is
Accused of Offering
$4,000 for Licenses


liquor withdrawn on fake or forged
permits has been smuggled into New
York City alone during the first year
Of prohibition, it was learned at the
Federal Building yesterday. This is
believed to be only a part of the
liquor SO withdrawn, as the stream
of unauthorized permits continues to
pour into the Office Of Charles r.
O'Connor, prohibition director for
New York State. The valuation of
the liquor represented in these re-
turned permits received so far this
week is said to be more than $3,0O0,-
600. In all, more than one thousand
irregular permits have been found.
These disclosures were brought
out in the investigation which fol-
lowed arrests in the offices of Direc-
tor O'Connor, which indicated that a
whisky ring of wide scope has been
operating virtually ever since the
Volstead act became a law. That
millions Of dollars have been OBJ.
tanned by evasion of this law has
been the continual contention of per.
sons paying almost prohibitive price.
IN nearly every barroom which ID
open, but until the arrests in O'Con-
nor's Office and the investigation of
the alleged frauds by employees
there the extent of the profits to
bootleggers could not be estimated.
Another Arrest
There was another arrest Yesterday
in connection with the operation Of
the alleged whisky ring or rings. Also
two bench warrants for former en-
ployees of O'Connor were issued.
Lawrence Malawista, h,nd;no
agent employed by the National suretv
Company, was arralgned before United
States Commissioner Hitchcock charged
with engaging with unknown persons
IN Conspiracy against the United
States government. He was released
in $4,000 bail.
eH@e- " '''te' . oI SSL IS Sdlu Co nave
resulted from a statement by William,
r. Mccoy, the former information
clerk in O'Connor's Office, who was
TO- = S 900 bail charged with beiur
party to conspiracy with Katherine
~a~sAt~l Bronx police
captain now dead; Mrs. Voberg Castle
Ii" and Irene N. Richa rdson. a clerk
IN United States Prohibition Conm;s-
sloner Aramer's cffice in Washington,
where Mccoy formerly was an auditor.
1t was said at the Federal Building
yesterday that on Wednesday night
Mccoy tried to reach Malawista at The
latter's home. POI West ll2th Sect.
for the purpose of getting bond. Whea
Nalawista did not respond quickly
enough Mccoy is said to have lost his
temper and Malawista's arrest OF
charge Of attempted bribery of govern
ment employees followed.
Ma'awista is charged with having
offered $4,000 to a government en-
ployee to aid him i'll gottin. basic per-
rlits and with having promised s1O0, 900
for obtaining basic permits on large
scale. These basic permits are said TO be
worth So 600 each in the market"
Malawista put up bail and his hearing
was adjourned Tor one week.
Commissioner Hitchcock had before
him al Mrs. Mary E. Parkins, held
in s50.G0U bail; Miss Regina Sassonc,
also held in $4,000; Sigmund (Beansyl
Rosenfeld, held in $50 coo, and Edward
Donnegan, held in 100000. These
were arrested last week. The hearing
Of the four. al OF whom have obtained
hill hed he st ror Yesterday. bur
William J. Fallon, their attorney, asked
an au.ournnlent u one week and this
was granted.
Permits Cut IN 800
Director O'Donnor yesterday said
that his office had succeeded in cut
ting down the wholesale liquor permits
from l 724, which were in effect July
81, to $50. in effect now. Advise. that
Commissioner Kramer had announced
that the number OF wholesale permits
is to be cut in half, Mr. O'Connor
said that he intended to go beyond
shat. He said from now on he VIII
law which forbids the granting Of
liquor permits to aliens He as ertod
an effort has been made to do this,
bus, because OF conditions IN has ofnco
before "housecleaning" which is 60
ing on, he could not trace every appli-
cant for permit
"As far as my Office is concerned"
Mr. O'Connor said, New York State
is bone dry"
tNalAWi Va WIS hiIcoteu py GepERc
Golding, Of the special Intelligence
unit of the Internal Revenue Bureau,
Of which Hugh McQuillan is chief.
In announcing the arrest of the Ma
tional Surety Company agent Chief
McQuillan also said that the Federal
Grand Jury had returned indictments
charging Fred E. Boar iway and
D. f. McMsnus, former inspectors at
tached to Director O'Connor's Offices.
with presenting false vouchers with
expense accounts. Boardway and Nc
Manus, both Of Kingston. N. Y, are
facing arrest on bench warrants.
Boardway is charged with having pre-
sented q bill for Sl57.50 for sixty
three nights at the Hotel Ansonia
when he did not stop there.
When Miss Foody was arraigned be-
fore Commissioner Hitchcock her hear.
ing was set for next Wednesday. She
WAS released whom she furnished .
bond OF $1,000. Her homo Is at 2A2o
Grand Avenue, the Bronx
Joseph Walsh. . driver. and Nsa