Evening star., 1923-10-19
JERSEY OFFICIAL
! IN RUM BR|bE NET
Senator Edwards Ex-Secre-
tary Accused in $50, GOO
NJ. Y. Saloon Plot.
r. the A.ssneia Ted PrRsH

BY the Assoeia TED Press.
NEW YORK. October 1s.-FedeTal
prosecutors and prohibition forces
have dealt bootiAgging strongholds of
New York city and the state of New
Jersey hard blows.
Developments in the last twenty
four hours have been:
Disclosure of a plot 20 swamp New
York with New Jersey beer TO the
exclusion of the product of brew cries
in other neighborIng states.
Arrest Of eleven persons, including
a New Jersey state official, prohibi-
ton agent, a warehouse man, four
wealthy brewers, two dealers in alco-
hol and two alleged ego betweens."
Got $4,000 In BriBes.
Charges by United States District
Attorney Hayward that hts agents.
posing as corrupt" tnveTgled partici-
pants in the plot into passing over
$4,000 in part payment of bribes that
were to have reached 100000.
Disclosure by Fl. ID. Esterbook, spe-
cial customs agent, that sixty rum
boats, S56000a worth Of liquor and
130 prisoners had been taken in a
series of raids on o--shore craft.
Seizure of three truck loads OF New
Jersey beer brought into Manhattan
alleged bootleg conspirators. most of
them at the Hotel Pennsylvania.
Evokes Paddock Law.
Hayward filed suit TO evoke the
paddock law against f1fty-four sa-
looms, cafes and cabarets, announc-
ing 1t is only a preliminary to the
closing of 1000 openly conducted
places in New York city.
The three truckloads of beer enter
ing New York from the Jersey shore
VVnN In oh Of hi IA ftpv,
agents. thought by the alleged own
ers of the liquor to have been sue
cessfuliy bribed. The agents, after
having accepted money offered as a
bri5e. accompanied the beer to ward
off the police" and permitted the
three trucks to get well into the city
before the seizure was made. Six
men were arrested.
Chief Enforcement officer Yellow
ley said this cargo was only the first
of several hundred the New Jersey
lequor men thought they were going TO
get into New York under the protection
Of agents.
Arrested In Hotel.
Earlier in the day federal agents.
working under direct orders from
Washington, bagged the eleven al
legged conspiratOrs in the Hotel Penn
sylvania and elsewhere, who were
alleged to have used $4,000 to bribe
agents not to stop brewing in New
entry into New York. The agents,
In turn. were making regular reports
of their collections to Washington.
from where instructions were being
issued.
The alleged conspirators were met
at the hotel by appointment, one at
q time, and arrested.
Barring of the alleged conspiracy re-
state of affairs in New Jersey and
possibly Pennsylvania. Mr.. Hayward
said. State and other officers, poll
ticians and persons high in social
circles are involved"
The men arrested are J. Harry
Foley. former secretary to Senator
Edwards of New Jersey, when the
latter was, governor. and now state
superintendent of weights and meas
ures: Herbert katz of the Paterson
Brewing and Mating Company; Ed
ward Butler of the Peter Breidt
Brewing Company of Elizabeth, " j.;
Company. rassaic n. J.; George Sec
ber of the Rising Sun Brewing Com
pany. Elizabeth. n. j.; Henry Green
field, a prohibition agent: Emmanuel
Elfenbein. a truckrnan and ware
housernan: Herman ]. Goldman. Theo-
dore l. Schwartzman OF the Herman
Chemical Company. Brooklyn. y. Y:
William Nathan of Hoboken, n. j.,
and DR.. Leo ZakarOff.
Conspiracy Ia Charged.
All were charged with conspiracy TO
give bribes to influence the conduct
of prohibition agents Specific charges
against Goldman. Schwartzman. FL
fenbein, Greenfield Nathan and Zaka-
rolf involved giving money to permit
the transDortion and sale of alcohol
to be rectifed into whisky and other
alcoholic beverages
1t was explained that denatured
alcohol was redjstilled into grain
alcohol and used for manufacture of
whisky; that grain alcohol. which
was to have been denatured was in
stead used to make whisky and that
money was paid to permit these prac-
tices and to protect those carrying
them out.
The charges again Foley and the
four officials of breweries alleged
that they had paid bribes to federal
agents to permit them to food New
York and New Jersey with beer of
high alcoholic content. The agents
In accepting the bribes. 1t was stated.
agreed to permit the manufacture
the other hand promised to use their
best efforts to prevent the sale in
New Jersey of beer made in Penn
sylvania. With the st.590 received
by federal agents today .hn total
Of bribcs seized hy the f,overnme MT
forces and confscated was $S4.50O. ac-
cordlng to United States Attorney
Hayward, who estimated the total
given in bribes s'nre tIte conspiracy
originated was about S7000oo
Report to Dausherty.
Mr.. Hayward declared ne was pow
erlcss to act against corrupt offic ia Is
except in so far as thcy came within
his Jurisdiction. but hS said he in
ended to submit all HIS findings to
-Attorney General Daushcrty for
direct action.
The investigation, it was stated
began in June, when reports came To
Washington that the prohibition law
hot h~n ,1xy til -
an attempt was being made to cover
them up by wholesale bribery, in
which prominent persons were in
volved.
General Prohibition Agents Grill
and Dunigan came to New Jersey and
began an inquiry. Immediately they
said they were approached by boot
leggers who assured them they
could get rich quick" If they would
be reasonable"
In August Special Agents Roche
and Barbara of the special intelli.
gence unit of the Treasury Depart
ment Joined Grill and DUNCAN. All
pretended they were corrupt and
that they were working hand in
glove with the conspirators.
Agents Pocketed Bribe Money.
While the agents collected the $780,
900 in bribes, they saw that other
bribe collectors were reaping a har.
vest of money on promises that they
would establish connections In high
places in Washington with people
who would make beer running ant
selling absolutely safe"
Most of this money, the agents
found. went into the pockets of the
collectors and go-betweens whose
were false. Bribes accepted by the
agents ranged from S400 to $4,000
some of the go-betweens receiving
as much as $4,000 for single AK.