New-York tribune., 1922-01-06
Hart Released
In $1,000 Bail:
Denies Guilt
Former Prohibition Director
and T. NJ. Reddy, Chief
Assistant. Arraigned in
S7.OOO.OOO Rum Scandal
More Charges Expected
Shoal Of Alleged Influential
Bootleggers Said to Have
Been Taken in L. S. Net

Harold L. Hart was arraigned in the
FEDERAL District Court yesterday to an
,wer the charge Of conspiracy to de-
irsud the government in connection
With the S, 100000 liquor withdrawal
scandal which Is alleged to have caused
b;x resignation as Federal prohibition
s;rector here With Thomas NJ. Reddy.
h;s chief assistant IN the enforcement
o.sce here. he entered tentative plea
Of not guilty 10 the indictment made
public Wednesday. IN which both were
named. Judge John c. Knox set Jauu-
srv IS as the day on which demurrer
nust be interposed if such course is
determined upon.
Both Hart and Reddy were released
in $4,000 bail.
Iumors were persistent Yesterday
that further starting revelations Of
eorruption in high places would be
made within the NeH. few days as part
os the Federal drive uocn inrlcnt!al
alleged 5oo.leggers which began tins
week. Assistant United States District
Attorney Maxwell s. Mattuck. who con
Quoted the grand jury investigation
into the alleged s7.000.O00 fraud. de-,
clared that he would examine several
more witnesses wit ha view to obtain
ing further indictments. but refused
to give any clue as to the ficln in
which he would work. He admitted.
however. that the December grand jury
had been dismissed without filing a
presentment on testimony which it is
known TO have been taken on liouor
frauds.
Several other district attorneys arc
thought to have been engaged in i'm
lertant Investigations along this line.
iat 1T is understood that none Of
hese is likely to lead to disclosures
d the m magnitude of that on Wednes-
Jay. Inc center of interest is Chief
Hugh McQullsan. whose special intelli-
gence unit Of the internal revenue
service collected the evidence against
Hart. William A. Orr. and the others
in the S247 900 case. He would make
no statement yesterday as TO what may
be expected 20 develon from his office
in the near future.
Three druggists involved in Wednes-
days disclosure entered pleas of not
guilty when arraigned before Judge
Knox. They were John La Penna, Bon
fgl;o Venusti and Charles Steinberg.
As all OF them already have been ad-
mtted to bail because of their indict-
ment last fall for uttering forgeries
and having in their possession for
geries and stolen government property
in connection with this case. additional
bond was not required of them
The only other important develop-
ment in the enforcement situation here
yesterday was the granting of the sec
ond important injunction which Fed
eral prosecutors have asked within a
week to restrain well-known restau-
rants from selling liquor. Dinty
Moore's. on Forty-sixth Street. just
west of Broadway is the white light
resort singled out by Assistant United
States District Attorney Victor House
and Sanford II. Cohen for this second
test case on the governments power to
deprive restaurateurs CT the right to
jury trial for violation of the Nolstead
act. Shanley's was the first.
Argument on motion to make per-
manent the temporary injunction which
Judge A. n. Hand granted YESTERDAY
against James Moore, the proprietor or
the restaurant. was set for January IS.
II the motion is sustained Moore will
oe liable for contempt of court if nc
IS caught bootlegging and can be sent
70 3ail for three months upon Judge
hand's an order. without jury trial.
lhe temporary injunction was based
u upon eI affldavit Of Louis Vein Jr.. Saul
urii!, Joseph H. Estes, and Otto Fabric
,us' OF Green Miller's Flying Squad
ron, who arrested waiter and the
eash'er at Moore's on December on a
snarge Of selling them six one-ouncc
drinks Of whisky. N''~ ' @''00