Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-03-05
DRY ENFORCERS
REVERSED UPON
ALCOHOL ED|CT.
Fleischmann Yeast Com
pany to Get Another
Hearing Upon Ban.
Secretary Mellon Fav-
ors Trial Of Intelligent
Control First.

Washington, March 4.-Orders by
Prohibition Commissioner Haynes re-
vokng the industrial alcohol permits
Of the Fleischmainn company. Inc OF
New York and eleven Of it's agencies.
were suspended until Tuesday by In
terna Revenue Commissioner Blair,
Saturday night.
The orders We're suspended, Mr..
Blair said, pending rehearing Of the
case on Tuesday. He added that he.
himself. would hear the case.
Mr.. Blairs action was taken with the
approval of Secretary Mellon. upon
the request of counsel for the Fleisch-
mann company for an appeal from the
hearings on the casehe Id in Philadel-
phia before S. f. Rutter, former as
sistant federal prohibition director for
Pennsylvania. upon whose recommen-
dation Mr.. HAYNES issued the revoca
ton orders.
Revenue Head to Decide
A final decision will be reached Tues
day Mr. Blair said. at the conclusion
of the hearing which he will conduct
himself but meanwhile the whole mat
ter is to be held in abeyance, orders
for the seizure of alcohol in Fleisch
mann's agencies being held up, but the
company agreeing not to dispose Of any
alcohol pending the determination OF
the proceedings.
Decision to grant the Fleischmann
company an appeal from the odrers re-
voking it's alcoholic permits was reach
cd at conference late Saturday be-
tween Secretary Mellon. Assistant Sec
retary Of the Treasury Dover. Com
missioner Blair. Prohibition Commits
sioner Haynes and Solicitor Of Inter-
mai Revenue Mapes 1t was decided to
leave disyposal of the case in the hands
of Mr. Blair
The conference, it was said. did not
consider the possible effect Of the re-
vocation orders upon the manufacture
of yeast. but Mr.. Mellon was repre-
scnted as believing that methods could
be devised forcontroling the alcoholic
by-product which the prohibition au
thorities claimed had been diverted to
improper uses by agencies of the
F1cischmann company.
Date for the final hearing was set
at a conference between Mr.. Blair and
counsel for the company.
Charges of Diversion
Quantities Of industrial alcohol di-
verted to non-medical purposes by the
Fleischmann agencies during the past
year. revealed in testimony before the
hearing held by Mr. Rutter. were made
public by prohibition headquarters. At
New York. out of 1900 gallons of in
dustrial alcohol handled. 1900 gallons /
were said to have been diverted; at
brooklyn, $4,000 gallons were ham
died and 10000 gallons diverted: in
New JERSEY 10000 gallons handled,
5000 gallons diverted; and in Bridge
port. Conn G9.9oO gallons handled and
69.51J diverted.
MUDDLED, SAYS YEAST CHIEF |
New York. March 4.-Henry kalten- |
bach. vice president Of the Fleischmann t
company. Inc manufacturers Of yeast I
and alcoholic by-products. asserted that t
the federal prohibition department SIS |
in such bad muddlc it doesn't know /
what's going on. 1t doesn't know what t
it is all about
His statement was Occasioned by |
the announcement that Prohibition
Commissioner Haynes order, revoking !,
industrial alcohol permits of the
Fleis"hmann company had been suspen-
ded by Internal Revenue Commissioner
Blair and that seizure of alcohol in
possession Of the company and it's
eleven agencies would be held up.
Went For Tonics and Lotions
We shall continue to manufacture
alcohol, said Mr.. kaltenbach, tai
though we shall respect the govern
ment's orders by not shipping any of
it until Tuesday.
Concernin gchargcs that several
hundred thousands Of gallons of alco-
hol had been diverted to non-medi-
cinal use BY the Fleischmann COM
pany, Ne said: -.'
apparently the prohibition depart
ment is under the impression that all
alcohol not used as medicine is boot
legged They seem to forget that it is
extensively used in the manufacture Of
perfumes, tonics. lotions and score
of other products.
When they charge us with shipping
alcohol on fraudulent permits they
don't know what they are talking
about