The New York herald., 1922-11-03
GRAND JURY TO GET
DAY FIRMS LETTERS
Will See Correspondence Of
Banks With Former Dry
Chiefs Company.
'WHITEWASHING' HINTED
Lawyer Demands SummOning.
of Other Federal Agents
Carpet May Be Held.

All correspondence between r. A. Day
& Co. and the Garfield. Mutual and
Capital National Banks regarding loans
to the cloak and suit concern headed by
Ralph A. Day. retired prohibition en-
forcement director will be submitted to
the Federal Grand Jury when that body
resumes to-day its inquiry into liquor
fraud cases. Payroll books of the Day
company also will be studied.
Frederick w. Henkel, bookkeeper for
r. A. Day & Co.. explained yesterday
entries in many of the books subpenaed
States Attorney. He will continue his
explanation of entries to-day.
A suggestion that David II. Blair,
Commissioner of Internal Revenue, and
Roy A. Haynes, National Prohibition
Commissioner, be subpoenaed to testify
before the Federal Grand Jury investi-
eating liquor fraud cases was contained
in a telegram sent yesterday to Attorney
General Daugherty by III. l.. Scaife, at
torney for the Women's Clean Govern
ment Organization and former investi-
gator for the Department of Justice.
THE whtewashing of Days office"
said paragraph of the telegram. de
mands investigation. | talked with Col.
Hayward to-day, but he declines to state
whether or not he will subpoena the per-
sons mentioned. Immediate action should
be taken to clear up these matters before
the Grand Jury is dismissed and 1 sug-
gest that you direct the Federal Dis
- 49,
out delay
Mr.. Scaife said that with the aid of
private detectives he has collected evil
dence in liquor fraud cases that if sub
mitted to the Grand Jury will reveal
one of the most sensational scandals
in the history of the Government
Col. Hayward said this last night:
Mr.. Scaife came to my office to-day
in a great hurry and demanded that
we subpoena Commissioners Blairaand
Haynes Immediately. / asked him If
he had any information of value to
give us and he set forth few facts,
all of which were known to us. 1t is
and not advice that l am
interested IN. He was apparently sim
cere in his belief that he had informa-
tion of value. but to date he has not
revealed 1t to us. With regard to my
telling him who | was to subpoena, it
would, | am convinced. be unwise to
make public my plans in advance"
The Grand Jury turned its ingestiga-
ton yesterday also to~the disappearance
of 2.600/cases of liquor seized from Ber-
nard Bernstein 999 Freeman streets In
1920. Fifteen former dry agents and
number of policemen are said to be in
VOWED in the disappearance OF the
liquor. which is said to have been re-
moved from the Knickerbocker bonded
warehouse under withdrawal permits
signed at prohibition headquarters.
Henry and Mouquin Testify.
Inspector Dominick Henry waived im-
munity yesterday and testified before the
Grand Jury. His. testimony is said to
have been IN connection with the disap
pearance of the $500 cases of liquor.
Louis Moquin. owner of several restau-
rants and stores. also testified. He was
not asked to waive immunity. The
nature of his testimony was not dis
closed.
Judge Learned Hand in United States
District Court denied yesterday the APP
plication of the Standard Carpet CONF
pany, 3l9 East Forty-fourth street. for
the release of S100.0 900 worth of carpets
and fixtures seized by Frank X. Bowers.
Collector of Internal Revenue, after vast
quantities of liquor had been confiscated
from the place, In his decision Judge
Hand ruled that Mr.. Bowers must file
within three days a libel of information
against the seized goods.
The decision sets "A precedent mas
much as il seems to give the Internal
Revenue Department the right TO sews
all fixtures in places where liquor OH
which no Government tax has been paid
is found secreted.