New-York tribune., 1922-12-30
Indict Four
La MOntagnes
In Rum Sales

Ill mum CdlcS
tcsntlnusd NON page sn,l
which charges the utteranee and
passing Of forged withdrawal permits.
The information which led TO the in
vestigation and indictments came 20
Mr. Hayward f-om "a volunteer Wit
ness" The Federal prosecutor re-
marked yesterday that most Of the
facts which he presented 20 the grand
jury were in the possession Of the
/ New York prohibition director as early
as last June, although the latter did
not see ft 20 feport the facts 20 me-"
Mr. Hayward declared that the in
dictments were the result Of bis first
opportunity TO carry the campaign
against Illicit traffic in liquor into high
places. The prohibition enforcement
authorities eluttered his Office with
cases Of small Importance. he said. but
By no chance did they ever give him
information leading 70 the prosecu.
tion Of persons Of prominence.
lie was resolved. he said. TO find out
whether the law could be applied TO
I rich as we'll as poor and to prevent by
/ so applying IL. II he could, the relapse
I into "selective anarchy" which such
uneven obedience TO the law would con-
stitute.
Rum Conhseation Predicted
/ Judge Knox spoke along the same
/ lines in his comments TO the grand
/ jurors who handed up the indictments,
saying IL was time people who be-
! lieve themselves above the law should
/ learn that the Volstesd act has the
same force and validity as any other
part of the Constitution"
Sixteen thousand gallons OF rye, 316
cases Of Scotch, 500 cases Of gin and
/ e,224 gallons Of wine, brandy and other
I intoxicants arc said 20 have been dis
/ posed Of by the La Montsgnes and
/ their followers. Federal authorities
believe the indictments may lead 20
the confscation OF almost S3,000,000
worth of liquor still in stock.
The La Montagnes are said 20 have
Sll0 a case, although sales, apparently
FOR nOn-beyerage purposes, were listed
on their books AZ only $50 case. The
difference of $50 on every case sold is
alleged 20 have been split up among
the ringleadeTs.
Among the evidence In the case are
checks said 10 have been given the
La Montagnes to which are signed the
names J. Livingston e. Co., b. B.
/ Thsyer, II. lie Roy whitney, Walter
Mayer and 4. Townsend Irwin.
/ Mr.. Hayward's statement follows;
Exclusive Places Involved
"Tho indictments here fled involve
the bootlegging directly by the La
MOntagnes and their agents Of $4,000
gallons Of rye whisky, 3l6 cases Of
/ Scotch whisky. 500 cases Of gin and
e,224 gallons Of assorted wines, bran
dies, etc This is a minimum estimate
of the smodnt bootlegged BY the La
+ Mobtagnes in the last year An addi-
tional quantity, probably still larger,
was sold 70 bootleggers acting on their
own account under either forged or
purchased permits.
"The indictments are self-explaha-
tory. The first knowledge we had Of
this great conspiracy and the whole
sale bootlegging operations under II
/ came to Major Clark few weeks ago
frcm volunteer witness, and we
/ simply followed the trail, even though
| il led to select circles and exclusive
places The Office Of the New York
I exhibition Director had most Of the
facts the grand jury and my Office
nave worked so hard TO get, as early
L. l.s.N 4 a
report the facts 10 me.
"Thc first indictment contains two
counts. one for conspiracy TO violate
the National Prohibition Act and one
/ for conspiracy TO defraud the govern
ment Of taxes. The conspiracy in
cludes the operation OF three com
panies, Green River Distilling Com
pany, Eminenee Distillery Company.
/ Inc, and E. La Montagne's Sons. Inc.
/ the stock OF all Of which companies IS
held by the Copperheld Co., lney the
stock Of which in turn Is owned en-
tirely by the four la Montague
brothers.
Forged Permits Alleged
"It is alleged in the indictment that
The defendants sold whisky Of tho
Green River Distillery Co., Inc, to
persons who had no permits therefor
The Green River held what Is known
as B or wholesale liquor dealers
permit from aJnuary, 1920, to Novem-
Der. 1921, when all such permits were
cancelled, and during this entire
period large quantities OF Green River
whisky we're sold 70 other bootleggers,
who would present forged and altered
+ permits therefor.
ct is further alleged that defendants
obtained a branch distillery permit FOR
Eminence Distillery Company, Inc, and
sold whisky of that company to per-
sons who had no permit 70 purchase.
This whisky was sold direct 20 con
sumers and the transactions covered by
counterfeited and forged permits.
1T is further alleged that defend
ants sold intoxicating liquors Of Z. La
Montague Sons. Inc, 70 persons who
had no permits therefor. The liquors
OF this company were imported wines.
gin, Scotch whisky, brandy, etc. The
permits which covered these transac-
tions were not, 90 far as Is known,
forged. but IL not we're delivered b.
the permittees TO the La Montagnes
with the understanding that permittees
would not obtain the liquor or pay for
II, but that II might be bootlegged by
La Montsgnes.
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