The New York herald., 1922-02-21
WHISKY FORGERIES
YIELD $3O,OOOADAY
Enormous Profits Cleaned
Up by DOnegan, Is Charge
in Rum Plot Trial.
M'ALPIN RAID SEQUEL.
Miss SassOne, Clerk for Dry
Chief OC0nnor. Also
Faces Federal Jury.
SEIZURE HELD LEGAL
Bogus kilograms and Ficti-
tious Permits Set Free Big
Floods of Liquor.
SEIZURE HELD LEGAL

Edward Doregan Of 1921 Twelfth
avenue. Brooklyn. and Miss Regina
Sassone of 317 Seventy-eighth street,
brooklyn. were placed on trial yester-
day before Federal Judge Webb, sit
stealing Government papers from the
Office OF Charles r. O'Connor, former
Federal Prohibition Director, and con-
spiracy to violate the volstead act.
In opening for the Government
David V. Catill. Assistant United
States Attorney, said that while the
conspiracy was in operation Donegan
cleaned up about 100000 a day by
dealing in 1000 barrels and 10000
cases of whisky weekly through the
Use of forged and crooked permits
made possible by the theft of Mr..
oConnor's records.
Donegan. Miss Sassone. Mrs. Mary f..
Parkins and sismund (Beansy) Rosen-
field. who died last week, were arrested
~ a suite in the Hotel McAipin on De-
oer,ber %. 1890, by four secret service
AGENTS attached 20 the staff Of Hugh
McQullan's special Intelligence unit sent
here from Washington to unearth liquor
scandals IL Is alleged by the Govern
isent that at the time of the arrest
Donegan offered the agerts q bribe OF
500 20 hush the scandal and that
Rosenfeld also made a liberal offer.
When searched $4,000 in cash was
found on Donegan. Mrs. Parkins and
Miss Sassone Were employed as trusted
clerks In prohibition headquarters.
One Defendant Recants.
Mrs. Parkins was Jointly indicted with
the other defendants, but did not appear
for trial yesterday. It was reported
that she would be Government. witness
and this was not denied by officials.
Mrs. Parkins also Is under indictment in
Washington and Pittsburgh on charges
OF conspiracy 20 violate the prohibition
law She was a Government employee
III Washington for several years.
Most Of the session was taken up with
arguments by william J. Fallon. chief
counsel for the defendants and Mr..
Cahill. The uefensc asserted that the
arrests ana seizure of the Government
property were illegal as there was nc
search warrant used. Judge Webb ruled
that stolen Government documents can
be seized at any time or place without
he formality or werrant and that the
arrests were legal
other attorneys appearing for the de-
fcnse were Eugene r.. McGee. a former
law partner OF Mr.. Faiion Thomas Cuff
and Charles Berlin. The latter Is under
Indictment In Brooklyn with Donegan
on a charge Of Offering a $4,000 bribe to
Frank Sieb one of Chief McQuillan's
LIQUOR was seized In secret cellar in
ponegan's home n few months after the
arrests in the Hotel McAlpin The Fed
eral Government has brought suit
gainst Donegan in which IL Is charged
lie owes between 100000 and $1,000. 900
for income taxes including penalties.
Harold r. Stephenson. one of the Gov
ernments agents. was the first witness.
lie said he met Mrs. Parkins. who intro
duced him TO Donegan and Miss Sassone
in the Hotel AIcAlpin as Mr.. and Mrs.
Joyce. OF MT. anu AiIt. l<NUNH lt
witness declared that Donegan told him
he was doing an enormous business in
getting liquor out of bond and sug-
gested that Stephenson help him in the
Washington prohibition Office. In the
conversation, Stephenson testified. Done
gan told him the permits he was selling
were not genuine, but went through all
right by certain arrangements George
r.. Goldlng, another agent. started TO
testify when the jury was excused 20
hear arguments OF Mr.. Fallon and Mr..
Cahill.
Conspiracy Is Chief Issue.
In his opening address Mr. cahIll
said:
"The Government-does not charge that
Donegan was liquor dealer VINO sold
whisky to the thirsty. lie dealt in
liquor withdrawal papers that hroush ht
about the release OF tens or thousands
of cases and barrels OF whisky from
bonded warehouses and distller'eg. To
carry out the object OF the conspiracy
Donegan. under the alias OF Joyce. made
his headquarters at the Hotel MoNlpin.
The papers taken from prohibition
headquarters by Miss Sassone consisted
mainly of kilograms sent from cut OF
town warehouses and distiller.cs asking
should be honored. These telcgrams
were taken to the hotel and IL the in
ouiry was made about permits Donegan
was interested in telegraph answer
was sent saying they were all right and
the directors name was forget TO the
message. In this way Donegan could
hold UP competitors at will.
AT the time or the arrest IN the hotel
the Government detectives fouad more
than fifty OF the stolen te,eCi anl IN
auiries and copies OF the re oliss scrt
out, During the raid Dorrgan first
offered bribe OF $500, but later in-
creased II TO S3i 500 If the agents would
release Miss Sassonc himself and the
other prisoners. During .he tria we
viii show that Donegan carried on q
big game with the aid OF th'e g,r. amt
other Government employees aud that
whiic Il was In progress he c.s srei VI
large sums OF money"
Tho t'ial will be resumed at 10 80
this morning.