Evening star., 1922-08-07
'SHAKE-UP DENIED
IN DRY BUREAU
No Changes to Be Made Be-
cause of BIackmaiI
Disclosures.
ACCUSED FURNISH BOND
Officials Guarding Evidence
Against Two Mem Arrested at
Racquet Club Saturday.

No general sha.ke-up OF the pro-
hibition bureau will be a sequel to
the sensational disclosures at
preliminary hearing before United
States Commissioner George H. Mac
donald Saturday when Melville Stern
fels and Max Halperin, New York
attorneys. were arraignesl In connec-
tion with an alleged plot to defraud
the government by obtaining Official
records from the internal revenue
bureau. E. C. Yellowley. chief of
the general prohibition agents stated
today.
AS far as / know no such action
is even contemplated" Mr.. Eellowley
said.
,Shake-up RumOrSd.
Rumors of an impending shake-up
in the prohibition office. it was point
ed out probably originated when it
was brought out at the hearing be-
fore Commissioner Macdonald that at
least two employees OF the revenue
bureau were involved In the alleged
conspiracy to preclude the prosecu-
ton of professional bootieggers in
the principal cities of the states along
the Atlantic seaboard. in which Hal
perrin aud Sternfels ars charged by
dry agents with being the leaders.
The two bureau clerks accused of be-
Ing Implicated In the plot have been
released on their personal cognisance
because they turned states evidence
against Halperin and Sternfela
In connection with the alleged con-
spiracy prohibition officials decline
to indicate. Neither would the pro-
h,bition authorities intimate whether
other employees had been involved in
the sensational case.
Nj febowley expressed the opin
ion today that SterBfeis and Halperin
are the master minds" of a gigant.c
liquor ring which ramifies into viz
tually all the eastern states. and
limited that arrests of others operat-
ing with them are expected. The
most important of the evidence
against the accused New York law
yers. according TO Mr.. Yellowley. Will
not be revealed until they go before
the federal grand jury september 6.
Whether they will face any charges
Evidence TO Be Guarded.
Ii : not the intention of the bureau,
Mr.. Yellowley said, to make public
its evidence against the accused men
at this time and spoil the case besides
tipping off lot OF criminals to our
plans We haze enough charges ana
sufhci4nt evidence to support them
againA Sternfels and Halperin to
send them 20 the penitentiary for tn.
renaainder of their natural life
statement made in New York
yesterday by Halperin to the effect
that his first visit TO Washington was
on Saturday and that ne came here
under the impression that he was 10
lie retained as counsel for two Balti-
more ynen. was branded by Mr,
Tellowley as "a lie"
The prohibition official said he had
evide noe to show that both Halperin
and Sternfeis had been in this city
on numerous occasions
Released ON &25 900 Bond
Halperin was released on the
5000 bond, furnished by a profess
s!onal bondsman. early yesterday
morning and returned Immediately
to New York. Stsrnfels, however
did not furnish his bond until this
morning, and was kept in the 10th
precinct station since his arrest
Although Sternfers bail was orig
inally fixed at $4,000 by Commits
sioner Macdonald, IL was reduced
today to $4,000. No reason was Civ
en- by the government officials for the
substantial reduction in Sternfels
bond.s