The New York herald., 1922-11-02
COURT ORDERS DAY
TO PRODUCE BOOKS
Former Dry Chief Says Terms
Of First Subpoena Were
Indefinite.
JURY TO INSPECT CHECKS
Inquiry Centers on Effort at
Tracing 100000 Loan to
Cloak Company.

Ralph A. Day, retiring prohibition en-
forcement director, to-day must submit
for perusal of the Federal Grand Jury
certain books and documents of X. A.
Day and Company. cloak and suit man.
ufacturers, Judge John c. Knox in
united States District Court ruled late
yesterday in dismissing contempt pro-
ceedings against him.
Judge Knox upheld the contention OF
Abel l. Smith. attorney for Mr. Day,
that two previous subp9nas served on
his client were unreasonable because tn-
definite. For Mr.. Day to have to submit
all of the books of his firm would be
too burdensome, it was held.
Notable among the documents called
for by John Holley Clark, assistant
United States Attorney. were twenty
cancelled notes for loans" These notes.
Mr.. Clark said, are desired In an effort
to trace a 100000 loan. said TO have
been made to Mr.. Days firm by the
brother of a suspended dry agent.
Bank books showing deposits and
Withdrawals by r. A. Day AMI Com
pany from the Capital. National and
Mutual National Banks. along with four
loose leaf ledgers journal. four stock
certificate books, one stock ledger
book of payable and receivable notes.
loose leaf minute book and all or the
firms checks cancelled by the three
banks in the last fifteen months, We're
included in the list. Mr. Day early to-
day will be subpened to produce.
Mr.. DayA admitted in interviews sew
eraI weeks ago that he borrowed
$780, 900 from "a member of the Nationai
Republican Club to save his business
He declined to admit or deny that the
! loan came from Murray Carson.
brother of Irving Carson. suspended
dry agent.
The books sought, Mr.. Day said last
night, will be submitted as soon as a
| new subpoena is served on him. Inc
! subpoena will be served, officials saY,
| in time for presentation OF the DOCKS
to the Grand Jury when 1t reconvenes
at. II o'clock to-day to continue its in
uuiry into many angles of liquor fraud
cases. Frederick w. Henkel. chief
boolkkeeper for r. i. Day & Co, VIII
be subpoenaed to bring the books ana
explain the entries ia them, Mr.. Clark
| announced.
Perusal of the Day Company books
! is expected to clear up a number or
important points in tie Grand Jury In
vestigation, Federal officials said last
night. What particular figures are de-
sired from the boo6s. they declined 70
say other than that a vigorous check
is planned TO trace the source of the
$l00o0O loan.
Documents to be presented TO the
Grand Jury win be studied. II is said. 70
ascertain if they tally with records
seized from offices of persons reported
to be involved by the inquiry. With
hundreds of cancelled checks showing
withdrawal of more than 100000 from
the accounts in New York and Canadian
banks of an alleged king of boot
leggers" the Grand Jury seeks to get
"a balance"
Mr.. Day yesterday appeared before
Judge Knox at IL o'clock. He was giver
until o'clock to submit an affidavi
answering the Governments charge o
contempt In outlining the develop
ments leading to Mr.. Days refusal tc
produce his books, Mr. Clark pointed
out that he had served two subpoena:
on the former dry chief. When Mr.
Days attorney told him the first sub
poena was too broad, Mr. Clark says ht
prepared another, which was served.
Abel I. Smith. attorney for Mr.. Day
then said that his client would be in hi
office the following day at 10 o'clock. Th
process server, however said he coult
not find him until after IL o'clock. Mr.
Day, accepting the subpoena. according
to Clark, went to the Federal Building
and complained that he had not haC
time to get his books.