New-York tribune., 1922-03-04
HaynesRevokes
AlcoholPernits
ToFleischna1lll
,..b;bition Agents Ordered
N Seize Supplies OF
Irdustrial Product i'll
Yeast Company's Plants
False Records Charged
A,.o Alleged to Have Di-
W rerted By.Product for
Manufacture of Liquor

~.erryGTON, March 3.-Orders re-
49,, the industrial alcohol permits
% y .ss Fleischmsnn Company, Inc, Of
- York. and its branch agencies
issued tonight By Prohibition
..-~;.sioner Haynes. At the same
~. ,rohib;tion officials in the cities
-..,s agencies Of The company are To-
'..a oere ordered to seize supplies of
'.;us.r;al alcohol in the plants. Be-
s,i,s New York, the company has
s..-.b.s at Peekskill, Yonkers. Brook
". scranton, Pa; Philadelphia, Jersey
I;.v M Cincinnati, Bridgeport, Conn,
c,rsridge. Mass, and Langdon, D. c.
Wss.he. the revocation of the in
,ns.r;.l alcohol permits OF the Fleisch-
m.nn Company would interfere with
-. manufacture Of yeast, prohibition
.s.;,ls tonight were unable to say.
=. xss thought, however, that alcohol
~.,sssctured along with yeast could
- allowed TO evaporate instead OF
..;,o conserved as heretofore.
psvocation OF the company's permit
81. regarded by Commissioner Haynes
:. eone Of the biggest things done by
he prohibition bureau The action
~,s taken on the recommendation of
~ Rutter, former associate Federal
..,,:bition director for Pennsylva MIA, ,
gsfo,e whom hearings were held IN
.,;ladelphia upon charges Of misuse
= their Industrial alcohol permits by
he Fleischmann agencies.
Grounds for Revocation
c,ounds for the revocation of the
limits were given by Mr. Haynes as
follows:
"a. beverage purposes; disposed of
r.-.hsverage alcohol on forged per
r.,s and without permits to purchases;
l,r. ard maintained false records, and
a, times no records whatever. Of re
,snts and disposition Of non-beverage
,leohol: failed to file transcript of rec
,,ds with the collector OF interna.
rsyenue. and otherwise acted in utmost
bsi faith with respect to conforming
With the national prohibition acts and
,he regulations n carrying on business
uuder its several permits
Directors Of the Fleischinann Com
osny, Incorporated in Ohio, are julius
FIsschmann, PRESIDENT; Max c. and
Paul ". Fleischmann and five others,
vice president; Julius +. Behrend,
treasurer. All these officers live in
Chicago. where the home Offices are To-
Gated. The concern is the largest man
viac.urers of yeast and by-products in
ne world. TIE largest branch plant
is located in New y ok City and has
cfices at 7O1 Washington street
Raids on y. Y. Branch Depots
At the New York Offices last night
!, was said that no presentatlves of
the company in New York would be
pernttea to discuss the revocation of
alcohol licenses. All matters pertain
ing to alcohol or permits arc handled
By John D. Richey, who was said to be
cut Of the city.
The New York branches of the
FIeischmann company, at Peekskill and
yonkers, were accused of violating the
law in 1921 during the incumbency here
otE. c. Yeilowley, prohibition enforce
nent agent Two truck loads of alcohol
IN barrels were seized by Yellowlcy's
flying squadron and were traced to
depots Of the Fleischmann company
in Peekskill and Yonkers, it was
charged. A garage and storehouse Of
the company was later raided and
seizures made by the Yellow,ey squad
rcn. The case has been pending since
on revocation, as recommended by Mr..
Yellowey and his legal advisers.
Alcohol is natural bS-product of
yeast and its production was source
Of considerable revenue 10 the com
psny in the past.