The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-05
FORMER DRYLAW
OFFICIAL INDICTED
{: s WITH ASSISTANTS
, Twenty Accused in Plot
Involving False Liquor
Permits.

NASsONN-NNe -
Of liquors. Robert L. Hart. former
HrdsfaI prohibition enforcement di-
srector for New York state and once
City Judge of Binghsnton. y. v
two Of his assistants. two prominent
enpcratic city politicians. and a
srImber Of alleged fake drug cen
Germs have been indicted by u Fed
erai grand jury.
CTThe indictments. numbering
vEepty. were made public today.
q W. Harris Assistants Indicted.
some Of those indicted with Hort
>,xere: Thomas Reddy. chief assist
~anf to Hart. former postofnce ln-
. spector and one time deputy chise
81 The Department IF Justice
Michael ]. Lynch. in charge OF the
xySuance Of permits at prohibition
enforcement headquarters.
-wiHiam A. Orr. once secretary to
-ySrv Charles VI. whitman and now
In the insurance business.
Owen p. Murphy. treasurer of the
Democratic committee for The
Rronx
Thomas F. Duffy. political
leader. active for many years in
,,The Bronx.
- other defendants named were:
- Central Drug Company. 5. and Il.
Drug Specialties Company, The
Alps Drug Company. The Reliance
- Distributing Company; Herman Lev
'Din. Max Gordon. Barney Brauston.
t1Lesis. BILLION. John Gorini. Charles
J. SNfnberg. Bonhglio Venusti. John
La Penna. Nathan Field. Arthur
Kraus.
Inquiry Took Two Months
The drug corporations and their
slofficers named in the indictments
iSere charged with organizing not
:, for the purpose of engaging in the
,,,drue business. but for the illegal
,sha adling of wholesale quantities Of
liquor to be used for beverage pur-
'~pdses
= Since the indictments were re-
turned by the Federal Grand Jury.
s-some weeks ago. they had been kept
i-sealed pending the completion of the
inquiry. and when the investigation
Twas brought to a close Judge John
20 Knox ordered that the present
ment be opened and made public.
Two months were required to for
emulate the charges embodied in the
indictments.
. IT was stated in an authoritative
Quarter tonight that great politi-
cal pressure was brought to bear
Ito have the indictments quashed.
i~and that Prohibition Commissioner
'0Rov' G. Haynes eventually was
'Hforced to appeal to President Hard
ing direct
,--rNl-- Freed ON $1,000 Bosds
Late in the afternoon Lynch. the
permit man at prohibition head
-tnarters. and Thomas F. Duffy. As
Sociate of owen b. Murphy in the
insurance business. and William
!, \. Orr appeared before Judge Knox
:, and entered tentative pleas of not
: guilty to the conspiracy indictment.
They were released on bonds OF
-'s5.O0O each.
The drug compa mics indicted.
Through their counsel entered tenta-
. tive pleas of not guilty. and as these
/, individuals are already under bail
son other indictments. they were not
.'required to file additional bonds.
Pleading in the case of Director
,,Hart.-his chief assistant. Reddy. and
s,"wan T. Murphy. at the suggestion
.,uf Col. Thomas Il. Fielder. and with
s'the consent of Assistant District
stAttorney Mattuck. further inquiry
was postponed until tomorrow.
., Orr Held A. intermediary.
D. William A Orr is named in the
n tir
Intermediary between the 8 & Il. Drug
s,company. the Central Drug Com
,ipany and the Alps Drug Company.
''on the one hand. and the prohibit
ton officers on the other. to obtain
, sl'eciaI withdrawal permits by means
sfof which they obtained alcohol and
,tiipuors in great excess of the
''awount allowed them in their basic
/, .permits.
. The Indictment charges that MUIR
s'phy. Orr. Duffy and others obtained
s'Sh' withdra wal permits from Harris
office. numbered serially from 247,-
O0l to $4,000. at a time when the
., Legal serial number had reached
-s"nly $4,000. a method similar to
stthat used in money order frauds.
- The falsely issued and illegal per-
mIts. the indictment charges. were
presented to an authorized diSxil-
lery. The distillery was required
TO make inquiry by registered mail
s'as to the correctness OF the per-
Units. 1t was part Of the conspiracy.
=. IL Is alleged. to mail verifica tions
TO the selling distillery. No record
sgof the permits or Notifications was
itkept in the prohibition office. the
,'indictment declares. the plan being
to conceal all knowledge Of the
transactions from the Treasury De-
; partment.
Pay Well for Permits
- Hart appeared before the grand
s'jury several times to testify re-
garding the forged withdrawal per-
'mits- The forged permits bore the
name of Hart. imprinted with a fac
.simile signature. These permits
sold for enormous prices. it IL said.
and were traded in by wealthy
bootleggers like certificates Of stock
on the stock exchange
=, Following the resignation" OF
Hart. October 2, after seven months
'in office. and the appointment Of E.
e. lellowley, as Federal prohibition
director for this district, many ar
rests were made of persons who
= presented the forged withdrawal
s'permits to bonded warehouses for
the removal Of truck loads of bond
ed whisky. gin and imp, rted
liquors.
:, Approximately 10000 cases Of
shiquors are said to have been in
involved in the transactions result
1ng from the use of false permits
Violation of the VoIstead act il not
charged in the indictments.
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