The New York herald., 1921-02-02
WHISKEY'S GRAYEST
SCANDAL OVER CITY
Indictments and Shakeup in
Dry Forces Seen Despite
Official Demials.
INVOLVE HIGH OFFICIALS
Prominent Democratic Poll
tician Also Is Mentioned
in Rumors.
SDeaia! Despatch to THE New York HERALD.
y vi. ..Ya t,,,..oa,,
New York Herald bureaui
Washington. ID. c.. Feb. 1.

SPCalut DcSpdtCH TO IIIn NEW AOGh lli3iA-D
New York Herald Bureau,
Washington. ID. c.. Feb I.
In spite af emphatic denials by Pro-
hibition Director Kramer ana other Of
ficials the report persists here that the
greatest whiskey scandal that has de-
veloped since prohibition is threatened
in New York as a result OF inyestisa-
tions made by Treasury officials and
secret agents of the Government into the
situation there. Nothing in the report
reflects on the character or integrity
of Charles r. O'Connor. supervising
agent Of the New York district, but 1t is
understood that prominent Democratic
politician, well known New York char
acter, and a number Of high officials IN
the enforcement service are involved
It is said here repeatedly that as a
result OF the situation in New York and
the Investigations that have been made
a number Of indictments are likely and
that general reorganization Of the New
York district is probable. No official
statement in respect to conditions found
there or the action that is to be taken
could be obtained, both Director Kramer
and Commissioner of Internal Revenue
Williams denying any knowledge of spe-
cial reports In the matter. They de-
any new frauds or scandal or content
plated reorganization.
Reports current here. however, say
that Daniel J. Chaplin Supervising Pro-
hibition Enforcement Agent, spent ten
days in New York inVes tigating condi-
tions, recommending that prompt action
be taken. Following this, ii is reported
that Paul II. Myers, Deputy Commits
sioner Of Internal Revenue. went to
New York with Capt. Spencer Bliss. 1t
is the policy OF prohibition enforcement
officials here, and those of the Internal
Revenue Bureau also. to keep all mat
ters Of this sort quiet until action is
taken Director Kramer and Commis-
sioner Williams denied reports Of the
recent frauds in New York until the
fact OF arrests there had become public.
Charles r. O'Connor, Federal Prohibl-
tion Director for the State of New York
last night branded as false reports that
a certain prohibition official here was
to be removed. He denied also that
John T. Kramer, national prohibition
agent, was in this city on Monday pre-
paratory TO what is said to be lortn-
coming blowup in prohibition enforce
ment work here that may result in the
bringing Of indictments against officials
Mr.. O'Connor said he did call on
Secretary Tumulty last week or a pure
ly personal matter at the latter's re-
quest and no matters in connection with
his department were discussed.
Daniel j. Chaplin, Chief Enforcement
Agent. denied the statement that he
had preferred charges against and
asked for the removal Of a certain Of
fetal while he was in Washington.
when II comes to scandalous gossip,
the small country village has nothing
on the great cosmopolitan city Of New
York" said Mr.. O'Connor. "As mat
ter Of fact, l was in Washington last
week comforting with my superior Of
ficers IN relation to conditions in New
York in matters connected with my de-
partment, as was Mr.. Chaplin.
"Mr. Tdmulty had communicated with
mo in relation to a personal matter in
nowise connected with my department.
1 called upon him in that connection. AS
a matter of fact. l had hever had the
honor OF meeting Mr.. Tumulty until last
week, when | called upon him pur-
suant to his suggestion Some of the
state he was responsible for
my appointment, which is not true. SO
far as I know, he had nothing to do with
ii and knew nothing about it.
commissioner Kramer was not in
New York on Monday and has not been
for at least two weeks. according to a
! have just had with him
over the long distance telephone. 1 un-
that instead Of being I'm New
York he made "A return trip from Wash
ington to Philadelphia on Monday.
"I called Mr. Chapin's attention to the
statement in the afternoon papers and
he informs me he has preferred charges
i'm Washington against nobody and so
far as he knows the article referred to
is without foundation"