The New York herald., 1922-03-20
IS ACCUSED
AS A BOOTLEGGER
Federal Reserve Official of
Miami to Be Arrested in
Big Liquor Deal.
TWO SMUGGLERS TAKEN
Their Confessions Implicate
Financial Man, Who Pleads
Exposure Means Ruin.

Special Dispatch to THE NEW York HERALD.
| MIAMI, March 19.--Secret inyestiga-
tons In this city and nearby winter
resorts for the last ten days by force
of more than thirty special operatives
brought down from the Northern
States by Col. L. G. Mutt, Chief of
Federal Prohibition Agents, resulted
to-day in the seizure of a smuggled
consignment of whisky, gin and fancy
| liquors. worth, at prevailing bootleg
ging prices $4,000 and the arrest of
two of the smugglers.
Thomas n. Lewis and Wilbur
Phelps. the two men arrested. had de-
livered 100 cases of Scotch whisky
and gin to two Government agents.
They signed confessions involving the
vice-president of one of TIE principal
national banks of Miami, a member
OF the Federal Reserve system. This
banker, whose name Is being tempo
rarily withheld while certain data is
being completed, probably will be ar
rested in few days.
His connection with the case as a CO.
conspirator and the man who financed
the deal in his capacity as a bank Of
| ficer with the knowledge of the cashier
and in the presence OF both parties TO
the deal is certain to be brought out in
the court proceedings.
Evidence is in hand one banker was
to receive a personal payment OF
eighteen bottles of fine brandies as his
reward for putting the loan through the
bank in addition to the interest which
the bank would receive on a demand
note.
When confronted with the fact that
the Federal authorities had knowledge
OF the whole transaction this banker al
most collapsed in his own home last
night. He had the exact amount OF
money which was to bind the deal, about
$4,000 in bills of large denominations, In
pocket of his pajamas when two OF the
Government operatives called on him
about IL p. NJ.
They had been posing as New York
bootleggers and had been offered con-
signment of booze by Lewis and Phelps,
with the banker as go-between and GUS
todian OF the money. The banker turned
over the money to the Fedora! agents,
and pleaded with them not TO arrest
him. He said It would ruin him for life
and do incalculable injury to the repu-
| tation and business Of the bank. The
Government agents did not arrest him.
then they took Lewis and Phelps into
custody at once, but they feel certain
| the banker can be found at any time, on
account OF his prominence.
Phelps came here about year ago
from Atlanta and went into partnership
| with Lewis in cigar store. But from
! the start IL appears their chief business
was bootlegging. They found Il pront-
| able TO have a little punch board or
their cigar counter with severai smai
circles printed on 1t. Purchasers were
invited TO pay 10 cents to punch a
hole.
About a week ago two Federal agents
entered the place. They bought cigars
and inquired what the board was for
They were told that whoever punched
one OF the holes would force through the
other side a slip OF paper containing a
number There was lucky number on
each board. The two strangers IN
quired about prizes.
well. would not say this 70 every
body" said one OF the partners but you
fellows look on the square and don't
mind telling you that the prize Is bottle
OF imported Gordon gin or scotch
whisky"
"we1l try it, said the two strangers.
They spent a good many dollars during
the next two days punching the board
and came away with a quart OF London
Gordon gin. a quart of Dunevilie's lrish
whisky. a quart OF Burke's Irish and q
quart OF old Highland Scotch.
During this period they were also taik-
ing with walters in restaurants. bell hops
In hotels. other cigar store keepers and
generally finding out how easy i was
10 buy imported liquor In Miami and
the many suburbs.