The New York herald., 1922-03-22
BANKER Is ARRESTED
in FLORIDA RUM PLOT
Vice-President of Miami In
stitutiOn Accused OF Be-
ing Smugglers' Agent.
TWO OTHERS SOUGHT
Defendant Declares Case Is
Frameup, but Raiders
Enter Denial.
DOCUMENTS AS EVIDENCE
Boatload Of Liquor Also to Be
Shown-Other Arrests
Made at Resorts.
DOCUMENTS AS EVIDENCE

fDccial Dispatch to THE NEW YORK HERALD
MIAMI. March 21.-With the arrest
here to-day of c. NJ. Clayton. vice
president OF the Miami National Bank.
on 4 charge of conspiracy to violate
the Federal prohibition laws by act
Ing as go-between and financial agent
for liquor smugglers. the Florida cam
raign Of Col. l.. 6. Nuts flying squad
Of liquor sleuths reached it's climax.
Clayton was charged specifically
with conspiring with two alleged
mugglers-Thomas n. Lewis and
Loatload of liquor into the United
States from the Bahamas. A woman
proprietor OF a road house on the
Miami River and another man are in
cluded in the conspiracy, but their
rames have not been divulged. They
gro expected to be in custody by to-
morrow night.
Although Clayton. who is one OF the
most prominent bankers of this part OF
Florida, says the whole affair was a
frame up. Col. Nuts men assert they
have sufficient evidence to connect him
with the smuggling deal. when was ac-
tually consummated. The smuggled
liquor has been seized and is to be used
as evidence. together with documents
which are said to show Clayton's rela-
tion TO the whole affair.
Attempt to AbsoIve Bank.
An effort Is being made by Clayton
ond the Miami National Bank to show
that his connection with the affair was
purely in his private capacity. and did
not in any way involve the bank. To
offset this. the Government is prepared
to submit evidence that Clayton signed
a receipt for the money to be paid to
the smugglers in the name OF the bank.
and that another official of the bank
was aware of the transaction.
Col. Mutt declared to day that il the
forty Federal agents comprising his
flying squad had desired to involve
other bankers in and near Miami In
similar situations IL would not have
been a hard task. Several other deals
with bankers as financial agents and
20 betweens were under way it is al
legged. when the Clayton lie wis Phelps
transaction was completed.
As the result OF yesterdays raids on
more than forty hotels. restaurants and
IesortS In ana near Miami and Palm
Beach, more arrests were made to-day.
The widespread violation of the dry
law in Florida has aroused the better
element in the State. Miami newspapers
are suggesting that there should be an
overhauling of the State prohibition
force.
To Make Investigation in Cuba.
Col. Mutt and some of his best men,
including several members of the pro-
hibition and narcotic squads of New
York and Philadelphia. will leave here
for Cuba tomorrow. They will study
smuggling conditions in Havana and
later go to Nassau.
The smuggling deal in which Clayton
IS alleged TO have figured was outlined
I'm a recent dispatch to THE New York
HERALD. The receipt which he gave to
~. B. Phillips" a prohibition agent
under an assumed name. for the money
which was to be paid to Lewis and
Phelps when the smuggled liquor was
landed, will figure in the evidence. Sew
eral witnesses arc ready to swear that
the certain commodities" mentioned
were cases OF liquor and gin. although
Clayton to-day said that he understood
they were vegetables.
Evidence said to be in the handwriting
OF the banker shows he was to be COM
pensated in part for his trouble in
financing the deal by eighteen bottles of
special brands of liquor. The eighteen
bottles were captured by Col. Nuts
men and will be submitted by the Gov
crnment in evidence along with the
bankers memorandum describing them.