The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-08-24
U. S. READY TO GRIP
THREELIQUOR RINGS
Sensational Arrests. Including
Government Officials, Are
Promised.

Federal authorities after month OF
investiga ton. are about to make series
Of arrests which. 1t is said. Will cause
sensation In connection with the Illicit
liquor traffic IL was learned last night
Three big liquor rings. In which even
Government officials are said TO be IN
volved. have been discovered. with
profits running into millions. They VIII
be exposed, II Is said, through the CO.
opera ton of United States Attorney
William Hayward. Prohibition Director
Harold Hart and Howard r. Kiroack,
who. at the head OF a special force from
the Internal Revenue Bureau, has been
making a thorough probe OF the situa-
ton.
The charges made some time ago by
George A. Glynn. Republican State
chairman. that the prohibition office
here had many incompetent or corrunt
agents left over from the previous ad-
ministration, are said to have been fully
confirmed by Mr.. Kiroack's investiga-
ton.
Mr.. Kiroack established headquarters
in the Federal Building about a month
ago and began his probe with great So
crecy. Mr.. Kiroack said the results so
far fully Justified the probe.
The Investigation of whiskey permits
has occupied most OF the time of the
probers, Mr.. Klroack said. SO far about
half OF the permits issued had been
brought in by their holders. Those VINO
have failed to bring their permits in
on invitation, he declared, are facing a
surprise.
I'VE have facilities for tracing every
transaction without their records he
said. I'VE have found that not only
are the wholesalers and dealers In
volved In Bookkeeping transactions. but
that men high in business and society
IN New York city. and even Govern
ment officials. past and present. are in
volvei in the conspiracy. Indictment for
conspiracy to violate Federal statute
faces many of these men,"
He declared that he already has evil
dence enough for 100 indictments and
that a much larger total would be the
result of a complete investigation
"Of the total number of Class per-
mits nearly $500 insnumber," he said.
80 per cent have been shown to be
fra udulent in some respect. None Of
these books OF permits investigated rep
resents less than 1000 cases OF bonded
whiskey. and rome OF the transactions
were for 100000 cases"
A still, six hundred bottles OF alleged
gin and a dozen bottles OF vermouth
were found last night by Detectives
Lillls and Hepner of the Third Inspcc.
ton District they say, In the basemen.
OF No. 22s West Fifty-second street, a
few doors off Broadway. immediately be-
low the used car display room Of Rich
ard x. Haines of 700 Remington ave.
nue.. Jamaica There were also found.
the detectives assert, all the appliances
and most of the materials used in maxi
ing synthetic gin The gin seized
bore Gordon labels.
Haines denied oil knowledge OF the
liquor. and said he had sublet the base
ment some time ago and had nothing to
do with its contents. However, the de-
tectives arrested him. and he gave ba
at the West Forty-seventh street sta
ton.
Robert Pike and Michael Murphy Of
the crew of the rum schooner Henry L.
Marshall were declared in contempt by
United States Judge Julius NJ. Mayer for
refusing TO answer questions about an
alleged attempt TO land liquor. on the
Jersey coast and committed to RAYMOND
street Jail They declared that questions
az TO whether they were members Of the
Marshalfs crew on other alleged rum
running expeditions would incriminate
them IL answered.