The New York herald., 1922-02-25
DRY AGENTS TURNED
DOWN $4,000 BRIBE
Arrest of Miss SassOne and
Donegan Described at
Fraud Trial.

Witnesses at the trial of Regina Sas-
some and Edward Donegan. charged
with prohibition frauds in connection
with the withdrawal Of liquor through
the use of bogus permits. told yester-
day OF the attempt made by Donegan
TO bribe special agents who arrested
him and Miss Sassone in rooms at the
Hotel McAlpin. The prosperity of Don
egan was shown when a bank auditor
read transcripts of records of daily de-
posits made by Donegan for nearly six
months. many of them as high as $4,000
a day.
John Connors, formerly a clerk in the
offices of Charles r. O'Connor then
State Prohibition Director. testified that
permits to which his name had been
signed were forged. The permits in
volved the release Of 4,U00 cases Of
liquor.
That Donegan and Miss Sassone not
only had issued false permits but had
taken measures to prevent ''competi-
tors" in the bootlegging business from
obtaining Withdrawals was part OF the
testimony of Walter F. Murphy, special
Government agent, who with George
Golden arrested Donegan at the Neal
pin. According to Murphy Miss Sas-
some told of the details in the scheme.
Murphy said:
Il Il
(Beansy Rosenfeld. now dead) we had
a conversation with Regina Sassone.
She said she had seen me at the offices
OF the prohibition director few days
before the arrest. Tn glad that this
is all over she said to us, 1T has all
worried me a great deal!"
Says Girl watched TeIegrams.
Murphy said Miss Sassone told of her
method of extracting the kilograms from
OConnor's office, where she and Done
gan were employed. She asserted that
she took the kilograms and turned them
over to Donegan, and then told of the
way the messages were sorted out and
answered.
Those messages, usually kilograms. in
cases in which Donegan was interested
were answered by sending instructions
to the distilleries that the permits were
good and directing that they be hon
ored In the case Of kilograms relating
to Withdrawals in which Donegan was
not interested, Murphy said Miss Sas-
some told the agents she would reply in
the directors name. instructing the dis
tillery to return all copies to the Office
as they were forgeries. By this method
they were able to prevent the withdra wal
of liquor whether the permits were valid
q not.
Emanuel Reeves, an auditor of the
Irving National Bank. read to the jury
q transcript of the account at the bank
which Donegan had between July 10 and
December 20. 1920. The records showed
that Donegan had deposited amounts
daily ranging from $500 to $4,000 each.
Most of the money deposited, the auditor
said. was in bills of large denominations.
On one occasion. September 8. the rec
ords showed that Donegan had depos-
tied five $1,000 notes. $500 and one
500 note and s1,245 in checks.
Asserts Bribe Was s25,OOO.
Murphy told OF the alleged attempt
of Donegan to bribe the two officers
who arrested him. Offering them first
$1,000 each, and finally offering them
s25, 900 to forget this" Murphy told in
Cetail of the arrest, which was made in
Donegan's rooms, 1928 and 1925. which
also were occupied by Mrs. Mary E.
Parakins, Regina Sassone and Sigmund
"Beansy" Rosenfeld. Donegan greeted
Murphy and Golden cordially when they
arrived until he discovered their busi-
ness. Then. according to Murphy. he
said:
"See here. you boys are my kind.
We can fix this thing up nicely. How
about a grand apiece?"--a grand"
being $1,000 note.
Donegan's principal fear. the agent
said, was that his wife and baby would
know of his trouble and that his wife
would then divorce him. On these
grounds. Murphy said. Donegan again
attempted to bribe the officers. telling
them that he had $4,000 on his person
which they could have. Under more than
an hours cross-examination by william
J. Fallon. attorney for Donegan. Muir
phys story remained unshaken.
Charles r. O'Connor. former State
prohibition director. denied all lnowl-
edge Of the stolen withdrawal permits
and said his duties were too burdensone
to permit of his handling the detailed
work in connection with the permits.
This sort of work. he said, was taken
care of by his assistants. He bowed
to Miss Sassone and smiled as he left
the stand.