New-York tribune., 1922-03-25
Old Dry Chief Rob Warehouse
OfPennsylvania OF ,812 Quarts
And 40 Indicted OF Seized Rum
W. C.. Mcdonnell and Other
Observation-Disclosures
Accused of Conspiracy to
Defraud by Using Permits
Daugherty Is Criticized
Allegation Made That Attor-
ney Generals Office Re-
tardcd Work of Prosecutor

PHILADELPHIA, March "a William
G. Mcdonnell, former Federal prohibit
tion director for Pennsylvania, and
forty-siX others, including several as
sociatcs Of Mcconnell while he was
prohibition director, were indicted to-
day by Federal grand jury for CON
spiracy to defraud the United States
government in the fraudulent issuance
of permits to withdraw liquor from
bond
The indictments were returned after
grand jury investigation OF the al
legged release of 100000 gallons of
whisky and alcohol to bootleGgers
during the seventy-day regime Of Me
Conncll as head Of the prohibition law
enforcement staff in Pennsylvania.
Mcconnell. prominent in Pennsyl-
vsnia Republican politics, and former
State Senator, was appointed Prohibi-
ton Director on the recommendation
OF Boics Penrosc.
The indictments were returned few
hours after T. Henry Walnut, former
Assistant District Attorney, had dc
livered an address before the City Club
in which he asserted that proceedings
against Mcconnell before the grand
jury had been held up by District At
torncy George W. Coles and the Attor-
ney Generals Office at Washington.
Says Daugherty Is Being Used
Walnut declared that when he had
desired to proceed against Mcconnell
end present evidence against him to
the grand jury he had been pre-
vented from doing so and had been
informed by Coles that action against
Mcconnell "at this time would en-
harrass the Attorney Generals Office
Mr.. Walnut declared that Attorney
General Daughcrty himself was being
used to accomplish a disroputable end"
Walnut's connection with the Dis
trict Attorneys Office was severed last
week when resignation presented by
him several months previously was ac-
cepted by Ru1h Holland, Assistant At
torney General, in Attoreny General
Daueherty's absence in Florida.
The former Assistant District At
torncy regarded the acceptance Of the
resignation as a dismissal and declared
in statements that he was "Ousted to
prevent the prosecution of Mcconnell" "
Walnut was chiefly responsible for
direction Of grand jury sessions inycs-
tigating violations of the Nolstcad law
District Attorney Coles, commenting
on the charges Of Walnut, said ne was
not concerned with the utterarces Of
person formerly alta to this of
flee"
Upon the acceptance of Walnut'x
resignation by the Attorney Generals
office last week District Attorney Coles
stated that the resignation would
cause no delay in plans of the Dis
trict Attorneys office to Immediately
present evidence against alleged VIC
lators Of the prohibition law without
regard to person"
Approves District Attorneys Work
The grand jury in a special report
said 1t desired publicly to thank Dis
trict Attorney Coles "for the very
methodical and efficient way in which
he has presented the work to US"
Walnut is "Hulled"
WASHINGTON, March 24.-Former
Special Assistant United States Attor-
ney T, Henry Walnut was "completeiv
hulled' by the action of the PhiladeI-
phia grand jury in bringing indict-
nents against former Federal Prohibi-
tion Director Mcconnell, OF Pennsyl-
Vania, and others, Attorney General
Daugherty declared tonight.
considering the unjustifed insinu-
ations of Mr.. Walnut" Mr.. Daugherty
said. "the action of the grand jury and
the court proceedings made public to-
day as consummation of the work Of
the Department Of Justice according to
the plans Of the Department of Justice.
without the assistance of Mr.. Walnut
and in spite Of his interference com
pletely hulls that walnut. do not
care to say anything more on the sub
ject."
Mr., Daugherty said later, however,
that tigation here convinced the
department that the program OF the de-
partment could be carried out as expe-
ditousiy without Mr.. Walnut as with
him"