The New York herald., 1922-01-05
HARY,ORR INDICTED
IN WHISKY FRAUDS;
1S OTHERS NAMED
Charge Use Of Lost Per-
mits in Conspiracy With
Drug Firms.
$1O,O0O,OOO RUM FREED
L. M. Reddy, Q. B. Murphy
and Il. T. Duffy Are
Named in Plot.
FORGERIES ARE TRACED
EX-Director's Office Clearing
House for Bootleg Trade,
Is Charge.
FORGERIEs ARE TRACED

Der Federal Grand Jury, which WAS
returned after two months OF investi-
CATION into tho enforcement of pro-
hibition in this city, was made
public yesterday by order OF Judge
John c. Knox in the Federal District
Court after remaining under seal
for more than 4 month. The indict-
ment names twenty individuals and
drug companies in an alleged con-
I spiracy to defraud the Government
on vast scale by whisky withdraw
ais by means of lost permits.
Those indicted are:
HAROLD T.. HART, former State
Prohibition Director.
WILLIAM A. ORR, secretary to
Charles S. Whitman during his terms
in Office as Governor.
THOMAS NJ. REDDY, chief assist.
ant to Hart.
MICHAEL J. LYNCH, clerk in the
directors Office.
OWEN B. MURPHY, former treas.
urer Of the Democratic committee in
The Bronx.
THOMAS II. DUFFY, insurance
man, widely known in Bronx Demo-
cratic circles.
HERMAN LEVIN of the Central
Drug Company.
MAX GORDON, alleged bootlegger.
BARNEY BRAUSTON, alleged
bootlegger.
LOUIS BILooN of the Central
Drug Company
JOHN GORINI of the Alps Drug
Company.
CHARLES J. STEINBERG of tho
Reliance Distributing Company, Inc.
BONFIGLIO vENUSTI, dealer in
druggist supplies.
JOHN LA PENNA. dealer in drug
gist supplies.
NATHAN FIELD. dealer in drug
gist supplies.
ARTHUR KRAUS, dealer in drug.
sist supplies.
The companies named in the in
dictment are the Central Drug Com.
pany the Alps Drug Company, tho
Reliance Distributing Company, Inc,
and the S. G. 3. Specially Drug Com
pany. 49,
st0.oOo.0OO whisky Freed.
Through the manipulations OF these
men, it is charged. liquor permits call
ing Tor the withdrawal of sf0,0oo.oo
worth OF whisky were Illegally OBJ
tanned from Director Hart's Office
within L period OF four or fve days
in the first week Of last August. Dur
ing the same month, according 70
Government agents, 400 more permits
were removed from the Directors o.
fee. by means of which s300O0,0o0
worth of liquor may have been se-
cured
A picture OF the Widest bootlcgeirg
activity. in which the directors head
quarters was made the clearing
house for fraudulent operations on a
scale unprecedented in the short but
crowded history OF prohibition. is pre-
scented b. the charges All the trans-
actions which are alleged 10 have
taken place followed one another with
in the space of thirty days. During
that time. It is charged, the I'D a. en-
forcement headquarters was lifted.
high and clear.
Orr. Duffy and Lynch appeared be-
fore Judge Knox late yesterday after
noon and entered tentative pleas OF
not guilty. They were released in
bonds OF $4,000 each. The drug conf
panics, through their counsel. entered
similar pleas. but as they are ALREADY
under bail on other indictments they
we're not required to Ale additional
bonds
At the request their counsel. Gel
Thomas n. Fielder. Hart Reddy and
Murphy Will plead This morning.
The Indictment charges the defendants
individually and collectively conspirsd 60
defraud the Government through tho Is
suance OF fraudulent permits by rncsrs
% which liquor IN excess OF the allow
ance granted to any one OF the drug
companies was Withdrawn. The offenss
alleged ranks with n felony charge and
IN the event OF conviction all those found
suilty may bc sent to prison for terms
Of three years or less.
story OF indictments.
Maxwell s. Msttucl. Assistant District
Attorney. who procured the indictments
after agents on the staff OF Hugh Nc
Quillan. chief Of the special intelligence
unit OF tho Internal Revenue Bureau
f.a. al a. fpH Ia
'he following statement with respect 60
how the indictments we're obsained,.
The cage first came 20 the attehsen