The New York herald., 1921-12-09
National Institutions Took
Them Believing They
We're Bona Eide.
NEW YEARS TO BE DRY
This Is Forecast in Second
Cafe Raid in Theatre
District.

With the renewal yesterday of the
Federal Grand Jury's inquiry into the
alleged laxity of prohibition enforce
ment in New York. it became known
that not only are two national banks
involved but that the bootleggers who
are said to have obtained loans from
these banks got them on their notes
mits for liquor worth s7.500,0O0. When
the banks made advances on these
notes, in the sum Of more than 81 900,
600, the permits were supposed to
be genuine. The Government now
charges they we're fraudulent.
These withdr avail permits are be-
iieved to have been some of those
which disappeared from prohibition
headquarters last May while Harold
L. Hart was State prohibition direc-
tor. There were about goo OF these,
and through the work of agents or
the staff of Hugh McQuillan, chief Of
the special intelligence unit Of the In
ternal Revenue Bureau. most of them
were recovered before the liquor for
which they called was released.
The continuation of the inquiry is
thought to be the result Of additional
information concerning the financial
transactions of the bootleggers. in
Guiding the part played by the banks,
which came to Nghtstoo late for the
old Grand Jury to take up. 1t is pos
sible that other indictments may be
added to those already found.
The new Grand Jury which is carry
ing on the work of the October jury.
whose indictments are still under seal.
had before It only one witness yester-
day. A great many more witnesses
are to be heard. however.
Dry New Years. Eve.
II the plans of New YorlS's prohibition
officials carry through. New Years Eve
in this city, SO far as the enlivening
touch of the popping cork and the
eurgling flask are concerned. will be
just as full OF life as Coney Islands
beach at o'clock on winter morning.
A raid yesterday on the Hotel Aber-
deem Restaurant in West Thirty-second
street and the recent raid on Shanley's
in Forty-second street, 1t was stated
last night. may be taken as an earnest of
what enforcement agents henceforth in
tend with respect to hotels and other
places at which liquor may be obtained
In the Broadway district.
The restaurant raided yesterday. al-
though on the ground floor of the hotel.
is operated separately by Max Belch
its manager and proprietor. whor1 the
agents arrested on charges of possession
.xAl kA1 Ill
Grill Fabricius and Wien reported buying
drinks of whiskey at ninety cents escn
while lunching In the restaurant. and
Agent Estes stated that Bleich offered
him 500 to overlook It." They arrested
also Joseph Reiter. waiter. and Miss
Rose Anker. cashier. on charges of se'l-
ing. The three were held for a hearing
in $1,000 bail each by United States
Commissioner Hitchcock.
Estes said the raid was the beginning
Of a cleanup in the Broadway district
which would hold good over the New
Year. and E. c. Yellowly who is still
at headquarters. cooperating with Di-
rector Day. stated 1t was part Of
plan for a concentrated attack upon
hotels and other sanctuaries of the
thirsty who are willing to spend freely
for liquor.
Scotch whislSey Seized.
Formal seizure OF 1000 cases of Scotch
whiskey, with n bootleg value of $500 900,
part of $l.10o.00o consignment stored
In warehouse by the Alps Drug Com
pany OF 40 Eighth avenue. was carried
out yesterday by customs inspectors
1t was reported two weeks ago that
ts.s seizure had been made by the Gus.
toms In connection with e. G. Yellow
ley, ther 1sting State Prohibition Di-
1x,tN ~, Ill txy1 "A
been made. The whisitey Is said 20 have
been imported from Scotland several
months ago 1t is expected other seiz-
ures of imported whiskeys In otner parts
of the country will follow shortly.
Director Ralph A. Day. who returned
from Washington with e. c. Ycllowley,
said the contemplated changes in the
Brooklyn office would not be put in
effect for several days.
More than 200 dancers IN Arcadia
Hall. in Halscy street. near Broadway.
Broolslyn. watched Federal agents early
yesterday morning while they rnnde n
raid in the rathskeller and cellar OF the
building and carried on. liquor worth
$4,000. The agents blocked all six exits
OF the place and halted the dancing, but
there was no disorder
Karl Kalmenson. salesman, of 725|
Macon street; william r. Wagner.
manager. and Charles Il. Lyns.. drcc-
tors of the Halsey Cafe and Restaurant
&upanv. were later rraigned peicra
brfted States Commissioner McCahs In
Brooklyn and held In $500 bail each or
examination on charges of r,ssesslns
and selling.
A quantity of seized liquors. Including
gin, wine and whlskey. was sold by
United States Marshal Power in arook-
lyr on the order OF the Federal Court
A lot OF 500 bottles OF whlskcy was sold
at s125. with slow bidding.