The New York herald., 1921-01-14

Chemical Company for $4,000. He has
already paid Kurzweil $4,000. At 3
o'clock this morning Inspector Hurley
and Streppone arrived at the Essential
Chemical Company's place TO make
check up OF their whiskey trades. They
examined the permits, four in number
which called for the removal Of 1000
cases OF whiskey In $50 case lots.
ssSoon afterward Enforcement Agents
Dunn and Eilperln put in an appearance.
A minute later Kissler and Coffey drove
rp in an expensive automobile five
trucks made their appearance and were
being loaded while the prohibition
agents, Kesser and others, were con-
versing about the payment OF 500 to
Hurley and Strerpone and 500 TO Dunn
and Ellperin. The talk was overheard
by two of our men concealed on the
premises.
ssThe $500 was handed to Streppone and
Hurley by Kessler and as they left the
premises they were placed under arrest
hy Special Agents Golding. Scib, Ander-
son AMI Healey The two men were
brought back TO tie Essential Chemical
Companys office Just as the agents
end the prisoners entered the place the
500 was about TO be handed to the two
other prohibition seuths, bui the uneX-
pected appearance prevented the actual
payment of the money.
Marked TlOO btil SuSpett.
sWheu Streppone was searched later 4
marked 500 bank note was found on his
person, together with $500 in cash.
During the stay in the plant after the
arrests there was an animated con-
versation Later the other 500 marked
bank note was found on Kessler. We
do.not know how 1t found its way back
to his pocket"
How did Kessler' happen to have
marked 500 bills in his possession
which were Immediately recognized by
yourself and men?" Chief McQuillan was
asked.
..Kessler might have obtained them in
change from someone" Chief McQuillan
answered, and grin overspread his
face. "I cannot go into the details of
The marked money al this time only TO
say that we know how Kessler came into
its possession and how the trap was
set and sprung.
The truckloads of liquor are now in
the custody OF the Government.
Late yesterday afternoon Samuel NJ.
Hitchcock. United States Commissioner.
released Kessler in $4,000 bail. Cohen in
$500 and Coffey In 81 900. George L.
Donnellan appeared as counsel for those
three defendants.
After an hours argument before Com
missioner Hitchcock, James w. Osborne,
and Ellperin, succeeded in having his
clients released in custody of counsel
pending proceedings for transferring the
bearing to Brooklyn. The question will
be argued at 10 80 this morning before
commissioner Hitchcock.
Assistant Federal Attorney Cahill
argued for $4,000 bail for Kcss,cr but
was overruled by Commissioner Hitch
cock. He said that Kessler was the
ringlesder In the alleged conspiracy and
that the others arrested aided and
abetted in the Withdrawals and transpor-
tation of liquor through forged permits.
Crooks and Incompctcnts.
MANY of the men and other en-
ployees In the Prohibition Bureau Of the
Internal Revenue Department in this
city are absolutely crooked and still
larger number are absolutely inefficient"
declared Leroy w. Ross. United States
Attorney, in a speech yesterday at a
luncheon OF the Rotary Club in Brook
yn.
THE Office Of the Prohibition Director
has become honeycombed with graft and
corruption" continued Mr.. Ross. THE
ONCE as originally formed consisted of
the director and an assistant. with hve
clerxs but because of the vast amount
OF permits issued and applications for
Withdrawals It was rapidly expanded
and the personnel was perhaps too care
1essly selected, as has been shown by the
graft revelations OF the last few weeks.
4 THE Office of the chief enforcement
officer was also hastily organized. and
men were employed at $50 a week at
time when motormon and street car con-
ductors received from $40 to S45 a week.
These $50 a week men were clothed with
almost unlimited authority to make ar
rests OF men who were making vast
sums doing an illegitimate liquor busi-
ness. The result was inevitable and
there has undoubtedly been a large
amount of crookedness in this bureau.
The difficulties confronting the Dis
frct Attorney. whose duty it Is TO en-
force the prohibition laws as well as all
other Federal laws, has been during the
last year fourfold. First. we had to
deal. with upward 1.700 persons who
~ere permitted TO withdraw liquors
fronl bond. and although the disposition
OF that liquor was checked up there was
apparently no difficulty in obtaining the
Services Of clever bookkeepers.
Large Obstacles Faced.
Secondly. we had to deal with an en-
forcement bureau, many OF whose mem
bers did not know the meaning OF hon.
nsty- while others never were on the job.
IN Brooklyn. Staten Island and Long
Island we have been allowed only
twenty-five enforcement agents 10 do the
work Of 1000 men.
Lastly. we had to deal with not only
the Indifference but in thousands of
cases with the absolute hostility and ac-
I've opposition to enforcement upon the
part OF the very type OF citizens who
should be most Interested in seeing law
and order upheld"
Michael O'Brien OF ISL Douglas street
James Fitzgerald Of $50 Douglas street
and Joseph #. Morris Of 39I Dean
street were arrested yesterday by De-
tectives Powers and Niggesmith of the
Adams street station charged with be-
ing concerned in a conspiracy for the
transportation OF liquor by a forged
permit.
EXEMPT u. S. SHIPPING
rnNn% nnU x~- ~-.x 49,