The New York herald., 1921-01-08
SEEKING THE BUYERS
Final Destination of Booze
Illegally Withdrawn Aim
of New Investigation.
OFFICIALS CLEAN HOUSE
Another Clerk Mentioned in
Connection With Deals Is
Suspended.

What Hugh McQuillan's men are ac-
complishing in New York in their in
vestigation Of the gigantic frauds by
which the operation OF the Volstead
act appears to have been accompanied
from the beginning is being under
taken simultaneously in all the big
liquor centres of the country, it was
announced yesterday by Elmer L.
Trey. chief Of the intelligence service
of the Internal Revenue Bureau. Chief
Trey arrived here yesterday to confer
with McQuillan, who is head Of the
New York branch of the service.
At prohibition headquarters In Wash
ington, Chief Trey said. his agents have
begun an examination of the office per-
sonnel and it's methods OF business, with
view to determining the extent OF the
connections which are believed to have
existed between persons employed In
Commissioner Kramer's Office and mem
bers of the tea party" whiskey ring In
this city.
Dispatches from Washington last
night announced the suspension of Irene
sloner Kramers office who was men
toned in l.e charges under which Will
lam r. Mccoy and Katharyn Foody,
clerks formerly employed In the office OF
Charles r. O'Connor, State prohibition
director, were recently arraigned
To Trace Illegal Shipments.
According to the charges. Mccoy and
Miss Foody conspired to obtain permits
by means Of bribes Offered and given
to Irene E. Richardson and other per-
sons in the Washington office" AS yet
no formal charges have been entered
against Miss Richardson.
The intelligence unit has instructions
to follow the illegal traffic in permits
through every bend and twist, and IL
possible, to probe beyond the ring
which Is believed to have made busi-
ness OF supplying permits. With In
formation that they now hold the agents
are confident that some OF the Illegal
liquor shipments can be traced up to the
point of delivery.
Chief Trey spent a good part Of his
time yesterday looking over the forged
permits. The sets of rubber stamps
used on the permits and the handwrit-
ing on the papers show varying Pc
culiarities.
Lawrence Malawista, who was ar
raigned Thursday on charges identifying
him with the tea party" ring. is an In
dependent bonding agent, and not an
employee of the National Surety Com
pany, according to a statement made by
William B. Joyce, president OF the or
ganization.
Held as stamp Counterfefter.
Four arrests were made yesterday by
Peter Rubano, Secret Service agent. In
connection with the raid Wednesday at
So Greene street by police of the Beach
street station. where large quantities of
bogus revenue stamps and liquor labels
were seized In addition to $4,000 worth
Of whiskeys and wines.
As a result of the seizure Rubano
brought before United States Conmis-
sioner Hitchcock. Frank Desmone.
Daniel Carhone. PasQuale Stipo and
Salvatore Shortino, all Of whom live
about Mulberry street. They we're
charged with counterfeiting Govern
ment stamps. Desmone was held In
s. 900 bail Carhone's was fixed at 5000
and the others were held for 1000 each.
Detectives Tighe and Kaufman Of
Chief Inspector Lahey's staff last night
rnided the Blue Bird cafe In East Four
teenth street, where Monk Eastman
vas on the night OF his death. The
raid followed their arrest OF Silvio Cor
rado, q waiter there, whom they
brought before Commissioner Hitchcock
on the charge that he had sold them
two bottles of beer and several drinks
OF whiskey. The Commissioner held
corrado in 1900 bail and Issued a
search warrant. The detectives found
ten gallon jugs Of port wine.
Another arrest on charges or imper-
sonating a prohibition agent was made
yesterday In the case OF John O'Leary
Of 373 West 116th street. He is alleged
also to have extorted $500 from john
Mcclellan, who has a saloon at Fifteenth
street and Ninth avenue. According TO
Mcclellan, O'Leary was introduced to
him by a man who showed an enforce
ment agents badge and told him that
O'Leary was prohibition supervisor for
The State Of New York"
A few days later. according to Me-
Geehan. came a telephoned request from
oLeary TO bring 5000 to the northwest
corner Of Eighth avenue and Forty-sec-
sEJa n0f fha IA