New-York tribune., 1922-03-15
Writs Issued
L or Seizure OF
l6 Fur Firms
Government Moves to Col
lcci $2,OOO,OOO Luxury
Tax Said To Be Overdue;
Expect Indictments To-day
Fifty Concerns Examined
Action Is Second Step in
Previous Arrest of Three
in Alleged Conspiracy

On January "a and % Federal agents
arrested three men charged with being
the ringeadcrs and Intermediates in
n conspiracy to defraud the govern
mcnt of approximately $4,000, 900 in
luxury taxes owed by some 800 manu-
featuring furriers. Yesterday, as the
second step to nullify the alleged plot,
warrant of distraint to take posses
sion of the business of sixteen furricrs
who have refused to pay the taxes said
to be overdue was issued from the
office of the Collector of Internal
Revenue.
The books Of more than fifty con-
Germs thought to have figured in the
conspiracy have been examined in the
last month, and it is expected that
many similar warrants will be issued
soon.
Indictment Expected To-day
simultaneously with the action Of
the Treasury Department came tho an
nounccment from Assistant United
States Attorney Canil, who is handling
the criminal end Of the case, that one
indictment against fur manufacturers
suspected Of completely in the plot
probably viii be handed down to-day
and that others will follow immcdi-
ately. He declared that he knew
nothing Of the warrants Of distraint
and that tho list OF those against
whom such action is to be taken may
not coincide with that on the indict-
mcnts.
Frank X. Bowers, collector of in
tcrnal revenue, refused to give out the
names of the furricrs whose busincsse.
are to be seized, but the fact that
among them is Barnett Weingold, OF
los West Twenty seventh Street, be
came known when counsel for thai
concern appeared before Judge Julial
W. Mack in the Federal court late yes
terday and obtained court ordel
staying the execution of the warrant
until Friday, when the matter vii
come up for hearing.
The governments claim against
Weingold totals s46.7S3 and is bascc
on the charge that eight monthly pay
mcnts varying between $4,000 anc
I $4,000, we're withheld, to each of whicf
! the statutory penalty for failure tt
/ file proper returns has been added. Ac
cordng to the criminal allegation.
made, last January many furriers cor
/ spircd to use Il counterfeit receip
stamp to deceive agents sent to OK
anime their books and 10 convinc,
them that the taxes had been paid.
Drastic Steps Provided
Collector Bowers declared yosterda
that each of the firms named in tn,
warrant Of distraint WAS given ter
days notice to pay on March 4. II,
! appeared confident that the proof O.
/ the governments determination givcr
yesterday would be sufficient to con
vince the furriers that further delay
was useless, and said that the sum de
manded probably would be paid before
more drastic steps become necessary
Otherwise, he concluded, the factorie.
viii be closed and left in charge OF
/ deputy marshals until sales can be ar
ranged. This is the regular procedure
The three men arrested in January
were Morris Rosenblum, of Parksids
| Court, Brooklyn, a former deputy in
| ternal revenue collector; Herman r
| Schuss, Of the Aberdeen Hotel. anc
Melville G. Newmark, actuary of the
American Fur Dealers Association
with Offices at as West Twenty fourth
! Street.