Daily Kennebec journal., 1922-01-05
|ND|CT SCORE FOR LIQUOR
WITHDRAWALS IN new YORK
Former State Dry Head
Tops List --0ther Of
ticiaIs, Trio Of Poll
ticians and Drug
Heads Included

New York. Jan. "A bombshell
w,s exploded today in New York
federal prohibition headquarters.
Cracking of the seals on a secret
Indictment returned some weeks ago
nv the federal grand jury investigat-
tnr enforcement of the Volstead Act
ia this city revealed the fact that
Harold l.. Hart a prominent Bing-
hamton attorney who formerly serv-
81 as federal prohibition director for
the state Of New York, headed a list
ara score Of defendants charged with
conspiracy TO dcfraud the govern
mont through liquor Withdrawals.
Indicted with Hart were two other
high enforcement officials. three poll
ticlans and a number of the drug"
concerns and their officers. The list
a. defcndants included:
Thomas Reddy. formerly allied with
the post Office Department and the
Departdent Of Justice. and who later
served as Hart's assistant. before
ihe lntter's resignation last fall.
Michael J. Lynch. a clerk in Hart's S
.ace. with key to the cabinet con-
taIning the serially numbered with
drawal permits.
William A. orr, private secretary
Il, charles :. Whitman when the lat
t,r occupied the gubernatorial chair
md now engaged in the insurance
business
owen ". Murphy. treasurer Of the
RfnoX county Democratic Commit
ilr
vhomas L. Duffy, Bronx politician.
The following drug concerns and
intt officers:
central Drug company. $. and Il.
Drug spocialtics company. Alps Drug
company, Reliance Distributing COM
pany. Herman Levin, Max Gordon,
Ualucy Brauston, Louis Billoon, John
Gerni. Charles }. Stenbers. Bonfglio
Ncnusti. John A. Penna, Nathan Field
ard Arthur Kraus.
The indictment. returned after an
..stlgatcn OF several months, con-
4lrtcd hv Assistant L. $. Attorney
Maxwell =. Mattuck, followed com
patnts OF lax enforcement of the
No'stcad Act and frequent shifts In
federal prohibition headquarters.
When federal Judge Knox late to-
dav ordered the seals broken 1t was
found that the defendants had been
.uurgod with dcfrauding the govern :
n,ut hy issuing false and fraudelel-.
n3tudrawal permits whereby liquor
.vcccding vastly the amounts allow :
.d any one defendant for the com
rounding ot drugs had sheen with
,raNn. The offense, alleged TO have
involved wholesale quantities of IL
u Ior. ranks with felony and upon
,outi,tion the defendants would face
three year terms.
D,- tNnch and Duffy later appear
- before Federal Judge Knox ana
entering tentative pleas OF not guilty
were released in $4,000 bail each.
counsel also entered not guilty
u'cas for tho drug companies indict-
- No additional bail was set In
rosc cases as all were under iail
iu connection with other charges.
Judge Knox granted a postpone
m,nt until tomorrow in the arrange
r'u' 90 Rcddy. Murphy and former
Director Hart.
The indictments followed an IN
ycstiratlon which started with the
-sI.ir. ~ n truck load of liquor on
tre road between Philadelphia and
rult moro. consigned to the Central
prlg company. agents. who mace
II.e seizure noted that tho permit was
~ The series Of 5000. At that time
e legal permit number for Harts
vfjcc was i9i coo. Hart is alleged TO
have coun,errigned the bogus per-
lrts
Various distillories were approach
- by holders OF similar permits and
.ot douhting their validity. allowed
'bc Nouor 10 be withdrawn.
Ralph 4. pav. who succeeded Ar.
'lbft rs federal prohibition director
ft- New York state. declined tonight
f. comment on Mr.. Harts indict-
mont
An 7 can say" he said. us that
nenS ~ those indicted are in any way
onnected with my ONCE"