Evening journal., 1922-01-05
FORMER N. Y. DRY
Chief ACCUSED
Ex-Director Hart, Assist
ants and Others Accused
Of Conspiracy
PENALTY is
JAIL SENTENCE

NEW YORK. Jan. s. - A bomb
shell was exploded yesterday in New
York Federal prohibition head
quarters
Breaking the seals OF secret in
dictment returned some weeks ago
by the Federal grand jury investi-
eating enforcement Of the voistead
act in this city, revealed the fact
that Harold L. Hart, a prominent
Binghamton attorney who formerly
served as Federal prohibition direc-
tor for TIE state Of New York, head
cd LIST OF a score Of defendants
charged with conspiracy to defraud
the Government through liquor
Withdrawals.
Immediately public attention. TO-
cused on poison liquor consumed
during the holidays. which claimed
its nineteenth victim. switched to
the flood Of real alcoholics which
were alleged 10 have been loosed
through putative fake drug con-
Germs.
Indicted with Hart were two other
high enforcement officials, three poll
iucians and a NUMBER OF the drug"
concerns and their officers.
The list Of defendants include:
Thomas Reddy. formerly allied
with the Postofice Department and
the Department Of Justice and who
later served as fIart's assistant be-
fore the lattars resignation last fall
Michael j. Lynch clerk in
Hart'5 Office. with a key 10 Tie cab
met containing the serially num-
bered withdrawal permits.
William A. Orr, private secretary
70 Charles S. Whitman when the
latter occupied the gubernatorial
chair and now engaged IN the in
surancc business.
owen B. Murphy, treasurer OF the
Bronx County Democratic Commit
tee.
Thomas F. Duny, Bronx poiiti-
sian
The following drug" concerns
and their officers;
Central Drug Company. s. and b.
Drug Specialties Company. Alps
Drug Company. Reliance Distribut-
ng Company. Herman Levin. Max
sordon. Barney Brauston. Louis Bill
loon. John Gorlni, Charles J. stein
berg. Bonfglio Venusti John A.
Penna. Natkan Field and Arthur
Kraus
When Federal Judge Knox yes
terday ordered the seals broken II
was found that the defendants had
been charged with defrauding the
Government by issuing false and
fraudulent withdrawal perm its
whereby liquor exceeding vastly the
amounts allowed any one defendant
for the compounding Of drugs had
been Withdrawn. The offense al
legged TO have involved wholesale
quantities. or liquor, ranks with a
felony and. upon conviction, the de-
PENDANTS would face three-year pris-
on terms.
The Indictment contains but one
count. with overt acts cited in sup
port Of the charge. The method al
legged to have been employed paral-
lels that charged against postohice
clerks recently asserted to have is-
sued fraudulent money orders far
in advance OF the current number
which legally could be issued. As in
the case Of money orders. the with
drawal permits are made out in
blank and numbered serially.
WASHINGTON. Jan. 8. - Secret
Indictment in New York Of Harold
L. Hart. former State Federal pro-
hlbition director. and others for n
legal activities in connection with
liquor permits and Withdrawals was
the result OF Investigations by the
special intelligence unit Of the In
ternal Revenue Bureau, officials
said. These Investigations. officials
said. had been in progress four or
five months.
Prohibition Commissioner Haynes
declined to comment upon the in