The New York herald., 1922-02-24
500 Each for Stolen Tele-
grams Sent to O'COnnor,
Then Director Here.
REPLIES CALLED FAKES
Edward Donegan's Counsel
Aiming to Show He bid Not
Sell Released Rum.

Former holders of liquor permit
privileges here, distillers and bonded
warehouse owners from different
parts of the country thronged the
courtroom yesterday at the trial be-
fore Judge Webb of the United States
District Court of Edward Donegan
and Miss Regina Sassone on charges
of stealing papers from prohibition
headquarters and violating the Vol
stead act. They testified regarding
permits and kilograms alleged to have
oeen used by Donegan in releasing
enormous amounts of whisky, which
found an eagerly awaiting market in
bootlegging channels in this city.
The evidence included kilograms
taken from tho office of Charles r.
OConnor, former prohibition director
which were sent from distlleries and
bonded warehouses, inquiring as to
the legality of papers presented for
the release of whisky. Messages in
answer signed with Mr.. O'Connor's
name putting the Q. X. on permits
Donegan is charged with forging were
also read into the record
The days proceedings developed that
the names of legitimate permit holders
were forged on papers with wrong aJ-
dresses in this city together with Mr..
O'Connor's stamped signature and from
200 to 1000 cases of whisky were re-
leased on each when confrmatcry tele-
grams were received by the distillers
and bonded warehouse proprietors.
Telegram Found Under Bed.
Assistant United States Attorney Ca
hill told the court that the kilograms
were found In Donegan's possession and
forged permits under the bed of Mrs.
Mary r.. Parkns whcr they were ar
rested in a suite of rooms In the Hotel
McAlpin.
Kerner Taylor of the distillery firm
which manufactures "Old Taylor" whis-
Ky at Frankfort, KY, identified two
withdrawal permits. releasing ESQ cases
Of liquor, which were presented in De-
cember. 1920. and answers he had re
ceived &c kilograms purporting to be
from the Prohibition Director saying
they were genuine. 1t afterwards de-
veloped that the messages were forged.
Under cross examination by William
J. Fallon. chief counsel for tie defense.
the witness said he had never done any
business with Donegan and did not
know him. Mr.. Fallon intimated that
the defense would show that his clients
had nothing to do with the alleged
forged papers either directly or indi-
rectly.
Similar testimony to that OF Taylor
Pennsylvania and Maryland regarding
false permits and forged telegraph re-
plies. These witnesses testified they
had never seen Donegan and released
the whisky in good faith only to later
find out that they had been victims OF
q conspiracy. The distlllers and ware
house owners. however. received pay
ment in full for the shipments and
stand no loss.
Salvatore Friuhie. former permit
holder. who lives at 141 Mulberry street,
when shown a permit signed with his
name and giving his address as 73 West
Ninty-first street. said he had never
seen the papers before. The permit had
been honored for 500 cases II whisky
by the Freiberg e Wurkem Warehouse
Company Of Cincinnati.
Release Permits Needed Now.
Herman Freiberg. secretary OF the
concern testified regarding fivs permits
received by mail and identified tele-
grams signed Charles r O'CAnnor re-
leasing the amounts called for. Mr..
Fallon asked the witness II he would
deliver whisky simply on a certificate
being presented and properly signed
without being accompanied by a 1.410
release permit.
Not under present conditions" Mr.
Freiberg replied, which caused a laugh
by spectators Known in the liquor trade
Hugh McQuillan, chief % the Spe-
cial Intelligence Unit sent here from
Washington to unearth liquor scandals
testified that Miss Sassone had volun-
tarily signed a statement that she had
taken kilograms from Mr.. G Connor's
Office
Miss Sassone expressed herself az
sorry for what she had done" said the
witness. "She said she had taken the
kilograms from the office of SIR O'Con-
nor and given them to Donegan, who
paid her as much as 800 for each telc-
gram. The girl told me she would put
the money In n tin box in her home IN
Brooklyn. and when the box was filled
she spoke to Donegan about IL and he
told her to bring the small bus TO him
and he would give her large ones She
said she took the small bills which
amounted to s2,700 at the time and
Donegan gavev her $4,000 In large
bills for them"
The trial goes on at 10 40 y.,is morn