New-York tribune., 1922-08-15
sl,O0O,OOORunn
Taken, Ginger
Ale Substituted
Two New York Warehouses
Looted of $500 Gases
of Whisky for Benefit
OF Illicit Booze Sellers
Guards Believed Involved
DIR. Kherilla, Said To Be
Leader of Philadelphia
Ring, Is Arraigned Here

Bonded liquors worth approximately
s1,ooo,0oo were reported yesterday to
have disappeared from two New York
City warehouses. Water or ginger ale
was substituted for the regular stock
and packed into the warehouse to fill
space.
This wholesale diverting of bonded
liquor is in addition to $4,000 900 worth
OF whisky and other liquors involved
in what is now known as the Philadef-
phia conspiracy case. Detectives of the
Intelligence Division of the Treasury
Department believe the whisky has
found its way into bootleg channels.
One of the victims of yesterdays re-
ported robberies is among the largest
warehouse concerns in the world, the
Republic Storage Company, with three
enormous repositories located at
Eleventh Avenue and Forty fifth Street:
GAL West Thirty-fifth Street and 534
Washington Street. The other concern,
the name of which has been withheld,
conducts big warehouse in First Ave.
nue..
1t was established yesterday that
some time after February 1 1900 cases
of bonded whisky disappeared from
one of the Republic company's ware
houses and that an equal number of
cases of ginger ale was substituted The
value of the liquor which disappeared
SO mysteriously was 100000 on the
bootleg market. An equal number of
cases is said to have been removed
from the unnamed warehouse in First
Avenue and it's value on the bootleg
market is also 100000.
Warehouse officials Silent
Officials of the warehouses refused
yesterday to discuss the matter for
publication. A detective employed by
the intelligence unit of the United
States Treasury Department admitted
that to rob the warehouses it would be
necessary to corrupt one of the gov
ernment guards on duty in the ware
houses. In the Philadelphia case,
where liquor valued at millions dis
appeared and gave place to water, ar
rests Of Treasury Department employees
were reported. Arrests were also
made in New York and removal pro-
ceedings begun by Philadelphia United
States District Attorneys
Arabian, with sumptuous apartment
on Central Park West, was arrested
here and arraigned yesterday charged
with being the principal conspirator in
the Philadelphia case. The complaint
was sworn out by Assistant United
States District Attorney John NJ. Blake.
The value of liquor diverted in this
conspiracy was placed at S5,000,000,
bootleg prices.
DR.. Kherilla appeared yesterday
afternoon with Jonah Goldstein, his
counsel, before United States Commits
sioner Samuel H. Hitchcock. Attorney
Goldstein conferred with Assistant
United States District Attorney Henry
Fieldman, who came here from Phiia-
delphia, after which DR.. Kherilla was
advised to waive examination in re-
moval proceedings and furnished a
bond of $4,000 for his appearance in
the Philadelphia Federal courts.
Attorney Goldstein asked that his
client be permitted to appear before
the Federal grand jury in Philadelphia
and make a clean breast of his alleged
participation in the plot to withdraw
liquor there, for the purported pur-
pose of export to Greece. Instead of
the liquor being shipped abroad it is
charged the barrels were filled with
water and the water exported.