Arizona republican., 1922-03-05
YEAST COMPANY TO
GET REHEAR|NG on
SUSPENDING PERMIT
TRepublIcan A. p. Leased wire1

WASHINGTON, Mar. 4-Order by
Prohibition Commissioner Haynes re-
voking the industrial alcohol permits
of the F1eischmann company. Inc,
OF New York, and II of it's agencies,
We're suspended until Tuesday. to-
night, by Internal Revenue Commits
sioner Blair.
The orders were suspended. Mr..
Blair said. pending re-hearing of
the case on Tuesday. He added that
he himself would hear the case.
Mr. Blair's action was taken with
the approval of Secretary Mellon.
upon the request Of counsel for the
Fleischmann company for an appeal
from the hearings on the case held
in Philadelphia before S. F.. Rutter
former associate federal prohibition
director for Pennsylvania, upon
whose recommendation Mr.. Haynes
Issued the revocation orders.
A final decision will be reached
Tuesday Mr.. Blair said at the con-
clusion of the hearing which he will
conduct himself but meanwhile the
whole matter is to be held In abey-
ance. orders for the seizure of alcohol
in Fleischmann agencies being held
up, but the company agreeing not to
determination OF the proceedings.
Decision to grant the F1eischmann
company an appeal from the orders
revoking it's alcohol permits was
reached at a conference late today
between Secretary Mellon, Assistant
Secretary OF the Treasury Dover,
Commissioner Blair, Prohibition
Commissioner Haynes and Solicitor
of Internal Revenue Mapes. 1t was
decided to leave disposal of the case
in the hands of Mr.. Blair.
Date for the final hearing was set
at conference between Mr.. Blair
and counsel for the company.
Quantities of Industrial alcohol di-
verted to non-medical purposes by
F1eischmann agencies during the
past year, revealed in testimony be-
fore the hearing held by Mr.. Rutter,
were made public tonight by prohi-
bition headquarters. At New York,
out of 1900 gallons Of industrial al
cohol handled, $4,000 gallons were
said to have been diverted: at Brook
lyn $4,000 gallons were handled and
$4,000 gallons diverted; in New Jer-
sey 10000 gallons handled, 5000 di-
yerted: and in Bridgeport, Conn.
5000 gallons handled and 69,515 di-.
verted.
Company Disputes Charges
NEW YORK. Mar. 4--Henry Kali
tenbach, vice president of the
company. Inc, manu-
facturers of yeast and alcoholic BIZ
products, tonight asserted that the
federal prohibition department sis in
such a bad muddle it doesn't know
what's going on. It doesn't know
what it's all about"
His statement was occasioned by
the announcement that Prohibition
Commissioner Haynes order revok-
ing Industrial alcohol permits of the
company had been sus-
pended by Internal Revenue Com
missioner Blair, and that seizure of
alcohol in possession of the company
and its II agencies would be held up.
I'VE shall continue to manufac-
ture alcohol said Mr.. Kaltenbach,
although we shall respect the gov
ernment's order by not shipping any
Of 1t until Tuesday"
Concerning charges that several
thousands of gallons OF al
cohol had been diverted to nom
medicinal uses" by the Fleischmann
he said:
apparently the prohibition de-
partment is under the impression
that all alcohol not used as medicine
Is bootlegged. They seem to forget