The New York herald., 1922-08-01
New York Doctor Is Among
Twelve Accused of Fraud
Involving $5,000,000.
HIGHER UPS ARE SOUGHT
Prosecutor Suspects Diplo-
matte Agents of Being
Members of Ring.

Special Dispatch to THE Nrw YosK IIERsLp
PHILADELPHIA. July 3l.--A plot in
volving s5.0o0.O0o worth OF whisky
was brought to light to-day when
warrants were issued by United States
Commissioner Manley at the request
of George w. Coles. United States
Attorney. for the arrest of twelve men
on charge of bribery and conspiracy
to defraud the Government.
Among those for whom warrants
were issued was Andrew Hamilton,
who resigned recently as police lieu
tenant. Others named in the plot are
Matthew Griffin, former head OF the
United States Secret Service in this
city: two other ex-Secret Service men,
a customs inspector, a New York
physician and Harold l.. Smith of
Villa Nova, president of the Harold
L. Smith Company, exporters.
According to H. B. Friedman. Assist
ant United States Attorney, the investi-
gators have only scratched the surface
in the conspiracy to defraud. and several
higher-ups living in Washington will be
arralgned Also il is declared that
diplomatic representatives Of several
foreign countries are involved. Lieut..
Hamilton to-nish: denied having had
any connection ".-.h the conspiracy.
II never was more surprised ir my
life" he said. than when I read OF my
alleged connection with the matter. /
can't see how they involved me In IL.
know none of the parties involved. with
the exception OF Matthew Griffin, whom
have known more than twenty-five
years. and Herbert Simon. who works
for Mr. Griffin.
Deputy United States Marshals started
this afternoon TO round up the twelve
men. and Commissioner Manley in
structed the Marshals to tell the accused
that there would be a hearing on Fri-
day and that $4,000 bail would be de-
manded of any who were held.
Secret Service agents have been work.
ing on the case eight months II was
decided to-day by Messrs. Cole and
Friedman that enough evidence had been
obtained against the twelve men 70 en-
able them TO issue warrants.
IL Is charged in the AFFIDAVIT that the
men conspired 70 remove whisky IN an
Illegal manner from the New Heliam
Distillery for export and then 10 sub
stitlte water for the whisky. Accord
ing TO tho charge the conspirators in
tended to draw 5000 barrels Of whisky
and mako substitution OF water. but tho
scheme failed when 100 barrels had been
withdrawn.
I'VE have evidence" said MIR. Fried
man, that we expect viii result in the
conviction of the twelve men. Also
have evidence that men higher up arc
connected with the case and those men
are being investigated"
After the permit was obtained i
added Mr.. Friedman. 100 barrels Of
whisky were withdrawn from the ware
house and taken TO a warehouse AZ Eric
avenue, and Hamill, y customs officer,
was detailed 10 watch IT, Grifiin's de-
livery agcncys men also we're put on as
private guards.
ION June 1, 1921. when Customs In
spector Hamil was on duty at o'clock
he met Simon and Griffin. The guards
we arc informed. bribed the customs Of
flcer by giving him si,1o0 In cash and a
promise OF $40 for every barrel that
came out OF the warehouse and also the
promise OF an expensive home in West
Philadelphia II he would close his eyes
and mouth as to what would happen.
Two hours later two trucks appeared
and unloaded 100 barrels Into the ware
house. on June 2 other men went TO
the warehouse picked the customs lock
on the door. took out ten barrels and
had them loaded on truck and re-
moved to a warehouse"