New-York tribune., 1922-01-20
$1,000,000 in
Liquor Bonds Is
Claimed by u. S.
Legal Battle for Security
Given by Dealers Who
Lost Their Permits Is
Begun by Director Day
Catrow Controversy Rests
Village Cafe Is Cleared in
One Case, but Still Has
to Fight 2 Other Charges

The beginning of a legal battle for
the forfeiture of more than $1,000,000
put up as security for good behavior
by liquor manufacturers and whole
sale druggists whose permits have been
revoked was announced by Federal Pro
day Evidence in six cases already has
been sent to the United States attor-
ney's Office, and more cases are in
preparation under the supervision of
William S. Bogart, head of the legal
department in the prohibition direc-
tors Office.
The size of the bonds which must be
offered before concern is allowed tc
deal in intoxicants varies in proper
tion to the size Of the business con.
templated, but on the average runs
around $4,000, Mr.. Bogart explained
yesterday. In some of the cases in
which forfeiture proceedings are te
be served, however, as much as $780,
900 was required, and long litigation is
expected before the government car
succeed in establishing its claim ir
such instances.
The directors Office has reason te
believe that counsel for the prospec-
tive defendants already are preparing
for protracted fight.
When E. c. Yellowlcy had charge
here, the enforcement lawyer said g
vigorous campaign was carried on tc
deprive liquor dealers suspected of di-
verting stmulants into the bootleggine
trade Of their basic permits. Nearly 800
were cited, and in 254 cases permits
were revoked after careful examina
ton. The books of each concern were
agents and public accountants, and the
benefit of the doubt was given to the
dealer in every instance, Mr.. Bogart
said. One permit was restored after
second investigation.
Director Day persevered in his re-
fusal to discuss the letter he received
Wednesday from Colonel Herbert Ca
trows attorneys demanding a retrac.
tion Of statements that Day is report
ed to have made as to his disagree
ment with Colonel Catrow. Assistant
United States District Attorney Pal
mer Garfield is devoting all his time
to this matter and has been in confer
ence with Mr.. Day repeatedly in the
last three days.
Acquittar Directed
In the Federal District Court yester
day for the tenth successive day en-
forcement cases monopolized the cal
endar. The only case on trial was tha
against Paul & Joe's Restaurant, II
Greenwich Village, on possession
charge. Judge John c. Knox directed
en- acquittal late in the afternoon, bu
two more cases are pending against thi
place, one involving selling and thu
other the maintenance OF a publi,
nuisance
Two men apprehended late Wednes
day night as they ran for cover at The
foot Of Thirtyninth Street, Brooklyn
from motor boats in which, it is al
legged, they were attempting to smugglt
liquor ashore from the Presidente viii
son. were arraigned in Fifth Avenue
Court, Brooklyn, yesterday. AS tn,
cargoes of their craft had been dumped
into the East River in chase the,
could not be held on prohibition
charge. A complaint charging then
with operating motor boat without {
license was filed, and they were helt
IN $500 bail each for Special Sessions
They gave their names as Joseph Che
vero, "a Van Brunt Street, Brooklyn
and Stephen Cherulo, "a Degrav
/ Street
Dominick Surato, who was arrested
with the two as he cndeavored to star
! his car from the pier, was held in 81 90,
bail to await the action of the grant
jury. AS 113 bottles of cognac are al
legged to have been found in the auto
mobile, he was charged with violatio,
OF the Mullan-Gage law.