The Washington times., 1922-03-05
YEAST CO. Wins
PERMISSION To
Make ALCOHOL
lair suspsnds Closing Order
Pending Probe-oigantio
Frauds Charged.

Pending an exhaustive investiga-
ion, Internal Revenue Commissioners
blair last night directed suspension
II the order issued by Prohibition
Commissioners Haynes revoking the
license Of the F1eischmann Yeast
company to manufacture and sell
medicinal alcohol.
Strenuous objection to Haynes
order were made yesterday by coun.
'el for the company, who charged
hat the permit had been revoked
without a proper understanding OF
he facts.
The yeast company has on hand
It this time approximately 1.000, 900
;allons of alcohol. 100000 gallons
icing held by the Fleischmann plant
at Langdon. d. c. Tho other plant
having alcohol as q by.product 10 at
Peekskill. N. Y.
yesterday by Prohibition Commits.
sioner Haynes as to tho manner In
which the yeast company Is alleged
o have diverted thousands Of barrels
If alcohol to illegal use.
Botleggors Reap Harvest.
In evading the law the names OF
prohibition directors in three States
were forged. he said. Fabulous sums
Of money have been pouring into the
bootleggers' treasury an q result. he
said, and in one instance entire
blocks OF houses were leased 30 that
stills could be operated at q mimi
mum OF risk or interruption.
Specific instance of alcohol from
The Fleischmann plants In five States
alleged to have been sold on forged
permits show q total OF 1000. 200
gallons. One-half of this was diverted
into the bootleg industry. It In
The cities from which the ALLEGED
distribution was made are New
York. Philadelphia. Brooklyn. Jersey
City. Cincinnati. and Bridgeport.
Conn. Haynes records show.
The Cincinnati plant of the com.
pany was sold last September to
George Remus, the sale to become
effective January I, 1922. Between
the period OF September and the end
Of the year Remus was provided
with a power of attorney. alleged
to have been executed by tho
Fleischmanns. giving him authority
TO operate as he would II the sale
had been consumated.
1t is charged by prohibition bu-
reau officials that Remus sought to
get control Of the Cincinnati plant
so that he would be in better posi-.
ton to influence the distribution Of
the alcohol and the bootleg whiskey
into the various districts IN an ef.
fort TO keep up the prices
To Prosecute An Cases.
Much of the alcohol withdrawn
from the yeast company plants was
withdrawn. Il IL alleged. on forged
permits intended for the Hawaiian
agency. Since some time 10 required
to check up on the Hawaiian per
units the bootleggers were able 70
operate without detection. Hundreds
OF these permits were used. Pro
hibition agents have not yet learned
how the hootleggers got possession
Of the blank permits.
So far as the report Of tho pro.
hioition bureau goes. no connection
has been established between the
local plant and the bootleegers' ring.
Commissioner Haynes declared last
night that In closing this source Of
supply he had dealt the bootlegger
ring one of the heaviest blows direct.
ed against II since the Eighteenth
Amendment became a law.
Haynes declared that he would
prosecute everyone Of the cases
against the Fleischman interests.
In Bridgeport there Ia an tndict.
ment standing now.