New-York tribune., 1922-01-05
Two Democratic Leaders.
Four Wholesale Firms.
10 Druggists Accused
Of 81, 100000 Fraud
Truck Breakdown
Gave Clew in Case
Three Hundred Permits
Illegally Used, Accord
ing 10 Y. :. Allegations

4 former FEDERAL prohlhltiCn dircc-
tor here and his two chief assistants.
Al important Republican politician and
t.,o Democratic leaders, four Wholesale
dug companies and ten individual
c-nccists we're named defendants in
x,slsd indictments returned by the
Federal grand jury early in December.
j. was learned when the seal was re-
moved yesterday.
Chief among those indicted are tor
mer Judge Harold l.. Hart, head Of the
enforcement Office here from Nav 2s
10 October 6. and William A. Orr who
vas secretary and campaign manager
for former Governor Charles S. Whit
nan. They are charged with conspiracy
10 defraud the government in connec-
ton with the biggest liquor withdrawal
sandal which has yet come to light.
IN pursuance of tho conspiracy, it Is
saarged, 500 Withdrawal permits, MUM
ssrsd serially 247oo1-247soo, we're il
legally removed from the directors of
ass late IN July, bearing the slammed
Signature of Judge Hart and tho sigma
'ars OF Thomas NJ. Rcddy, tho with
erawal clerk. who is also indicted
1hsse we're promptly filled in for largo
amounts eS the indicted druggists. il
"a alleged. and presented to distilleries
which applied for confirmation 10 pro.
aibitlon headquarters here. This was
obtained without difficulty, it is do
CARED, through the connivance of
Hart, Reddy and Michael !. Lynch. tie
'tlrd Official indicted, who was in
charge Of registered mail IN the direc-
tors office a the time.
s7,0OoO0o Fraud Alleged
According to official figures, the drug
csts attempted TO Withdraw whisky
Valued at boot'eggers' prices at So
b5c,auo on the EOS false permits which
bad been located up to that time.
lhlef Hugh McQulllan of the special
intelligence unit Of the Internal Rev
euue Service, which discovered the al
legged fraud. sad Yesterday that twenty
more permits had since been traced,
raising the total Of the fraud at
TEMPTED to over 81 100000 Because Of
ihe early discovery Of the conspiracy.
delivery on all hut about twenty five
oi the false permits was stopped, and
ior the same reason. it is thought, the
!emsining seventy-two were never pre-
ecnteA
The part which Orr and the two
!emucratic politicians are alleged to
lsVe played in the plot was that of 60
be'"een connecting the officials and TIE
erHgglsts. These other politicians are
Iveu b. Murphy, treasurer, and Thomas
J. Duffy, director, of the Bronx County
Democratic committee
had 1t not been for the breakdown
o. truck on which large quantity
o. the frauduleNtlv withdrawn LIQUOR
vas being transported from Baltimore
20 New YORK IT IS thought probable that
1he eAtlre conspiracy would have es-
capped detection.
NnAe the consignment was being
!nss'liy trars'e 'errsd to another truck
Ie eurioslt, OF the police in Philadel-
pala' where the incident occurred, was
aroused by recognizing several of the
zen with the disabled van as known
"eai pootegSers Questions we're
s.Asu "nlch We're not satisfactorily
iihs"eied, and after the second truck
Ysq ps1 proceeded on It's way the Chief of
rollce reported the matter 10 Chief
Nichols, Of the special jntell;gence
Illl OIL the internal revenue service
IN Philadelphia.
rL ihe case was promptly referred to
Chef McQuillan here. The With
erawal permit shown by the carriers
eeionged to the $4,000 series. which
syouid not normally have come into use
e9r ABOUT year. as the forms coming
rom the directors office at that time
meTe ms,,, numbered about 131 900. Mr.. Nc
su'!ian informed Mr.. Hart of the dis
sSyery at once, was told that the per-
u" aad never passed through his Of
ace and started an investigation Of his
Evidence to Grand Jury
>, Throughout October and November
'slaxwell S. Mattuck, Assistant United
,l's'es District Attorney, was constant
Engaged IN presenting evidence dis
~. .v'sfed by the revenue men to the Oc-
h,,Iss h.,s morning grand jury, which was
.s.a over for more than a month to
conclude the invcstiration. The wit
ssseS rf from whom the most important
Information is understood to have been
;'s'ned were the stenographers in the
.Iurector's Office. 1t is believed that
,:ougn them the evidence was OBJ
In, - =, ~. ihaue possible inc lnClu-
msa. .a u the three officials in the indict-
@sat.
!. 10 records of the transactions could
,e.aoai .vano IN Judge Hart's office, though.
m. 0.u.ng i. to Mr.. McQuillan, at least
lin, VI me typists remembered hand
ntr.; ;u.oahrmation orders on the false
1..s: IN. US Although the Internal Reve-
On M ts scnlef would not commit himself
TUG point, it is believed that much