New-York tribune., 1921-08-24
Government Agents and
Politicians Said to Face
Arrest for Fraudulent
Traffic in Wet Permits
l3O Indictments
Already Promised
Special Federal Officers
Conduct Most Searching
Probe Since Volstead Act

The most far-reaching investigation
Of liquor transactions. particularly
bootlegging, that has been instituted
since the Volstead act went into effect
has been begun in this city by the
Federal auth critics. it was learned yes
terday.
Evidence, much OF which is declared
to be startling because Of it's rami-
fications and the social and business
status of many Of the persons involved,
government is determined "to go the
limit" In exposing the illicit traffic
here and in other largo cities. 1t was
said yesterday that even government
ring activities.
The special investigation begen a
month ago, when, at the urge of George
A. Glynn, chairman of the New York
State Republican Committee, aided by
United States Senator'S Calder and
Wadsworth, Internal Revenue Commits
sioner David H. Blair and the Depart
ment Of Justice agreed to make a
sweeping probe of conditions here.
Secrecy Maintained
Federal agencies in Washington have
placed responsibility for the inquiry
in the hands Of Representatives. here.
A special force. headed by Howard R.
kiroack, of the Internal Revenue
Bureau, was organized and Immediately
established headquarters in the old
Postohtice Building. This force, CON
corning the function Of which absolute
secrecy had been maintained by United
States officials up to yesterday, is di-
rectly in charge of the bootlegging
phase. The results, Mr.. Kiroack de-
clarcd, would bear out the criticisms
Of Mr.. Glynn that bootlegging was be-
ing conducted here on an enormous
scale. producing millions Of dollars in
profits, and largely because Of the
faults and the personnel Of the pro-
hibition enforcement Office under the
previous administration"
Mr.. Kiroack, who is a resident of
New York and was a candidate for the
post of State Prohibition Director, now
held by Harold Hart, said three. and
possibly four. large 'whisky rings"
have been operating In New York, con-
sidering themselves "grandly immune
TO the law" It is these rings" which
he expects, with the cooperation of
Director Hart and United States At
torney Hayward, to expose.
owe have investigated in the COM
parative'y short time we have been
organized" said Mr.. Kiroack, "about
$50 books of liquor permits, represent
ing nearly 80 per cent Of tie total
number Of Glass B permits 300 to
2.o0G-that have been issued in this
city to wholesale liquor dealers.
Eighty per cent have been ascertained
TO be fraudulent in some respect.
"None Of these books represents
less than 1000 cases of bonded whisky
sold, and some of the sales by in
dividual dealers total 100000 cases.
Examined Liquor Permits
"Thc first thing VIC did after organ
ization was TO request all holders Of
liquor permits to submit them to this
office for examination.
eve have received about so per cent
of them. The remaining so per cent
prise in store for them, because We
have started a campaign that won't
end until we have demonstrated that
the Volstead act is either a success
or a failure.
"1'hey should know that we have
facilities for checking every transac-
tion without their records.
"Up to date we have concentrated
our efforts in gathering evidence Of
the activities Of these whisky rings.
We have found that not only are the
wholesalers and dealers involved but
that persons high in the business and
social life Of New York and high and
low officials, past and present, of the
Federal government may soon face ar
rest and indictment for completely in
violating a national statute"
Mr.. Kroack estimated the number
of cases in which conclusive evidence
Of fraud has already been found and
in which Federal grand jury indict-
ments may be expected at 1870.
This is only small part OF the
number we expect to expose" con-
tinued the special agent. I'VE have
hardly begun. We are going to stop
CONTINUED page Ave)