The Washington times., 1924-04-24
REVENUE PROBE
SECRETS ARE
EXPOSED
Hearst's International Gives
Facts Behind Efforts to
Shut If Oft.
By Cosmopolitan News servlee.

BY Cosmopolitan News service.
NEW YORK, April "a. - While
President Coolidge ana Secretary OF
the Treasury Mellon are trying to !
prevent the investigation into the
Internal. Revenue Bureau, and La
Toilette followers are determined to
bring that Investigation about,
Hearts International Magazine
comes out and prints some Of the
most interesting matter behind the
contest.
The article which appears in the
May number, is entitled What is
behind the liquor probe?" The !
two general classes. One in Penn
Pennsylvania story centers around |
the Overholt Distiilery and the Mel.
lon National Bank, The Illinois |
story centers around the Sehrman !
Hotel, Judge George A. Carpenter.
and a pardon issued sby President |
Coolidge.
The GrossHnan Case.
Last December President Cool |
idge pardoned Philip Grossman,
wealthy Chicago saloon keeper" ac-l
cording to Hearts International. |
First there was a Federal injunc- |
ton, restraining Grossman from
selling intoxicating liquors. Cross
man continued to operate his saloon
at Wells and Madison streets, and
1t was later proved in open court
to the satisfaction Of United States
Judge Kenesaw M. Lands, that
Grossman had ignored the writ and
was continuing to sell liquors.
Judge lands thereon, on February
z, 1921, sentenced Grossman to
serve one year in the Chicago house
Of correction and to pay fine Of
81 1000 dollars.
From this sentence Grossman ap:
pealed, but the United States Court
of Appeals affirmed the lower court.
aside the sentence, and asked a re-
hearing Of the case. This petition
was denied, and order made to take
Grossman in custody.
1.-THE United States marshal failed
to carry out the order, claiming he
understood that Grossman had fed
to Germany. Actually GrOssman
was at his saloon virtually all the
time.
Got New Attorney.
Meanwhile, Grossman changed
attorneys. His new attorney, Louis
]. Behan, is a law partner Of Homer
K. Galpin, chairman Of the Repub-
lican central committee and leader
in the Mccormick. NICK inley -Brund-
age faction of the Republican party.
ION about December II Senator
Mckinley received a Geographic
request to arrange an appointment
with the President for Homer K.
Galpin and another for the follow
ing day. The Senator arranged the
appointment and Galpin saw the
President on the 18th. Before the
end of the month Coolidge granted
the pardon, without Grossman be-
ing inside the jail"
Pennsylvania is q hot center in
this controversy, according to
Hearst's International, partly be-
cause of Governor Pinchot's activity,
partly because it is the home Of the
Secretary Of the Treasury.
zone Of the most important cases
politically is the Falkins-G Goodman
case.
1.-THE Federal grand jury indicted
FalkinS and Goodman on a charge
Of conspiracy to defraud the United
States. The indictment alleged that
Falkins had knowingly accepted
forged liquor permit by which 1850
cases Of whiskey were removed from
the Overholt distillery and turned
over to Goodman.
Got 1900 Cases.
I'VE know exactly what evidence
the Federal agents collected. Their
report shows Goodman got away
with 1900 cases Of this shipment;
they visited the saloon Of Morris
Goodman and found 496 cases of
Overholt whiskey in quarts, nom
beverage, with serial numbers, ap-
parently tallying with the shipments
to Beading, Pa, on the January 4,
1921, fake permit.
1.-THE records show that--from
September 3, 1920 to January 6,
1921, Morris Goodman withdrew in
all $4,000 gallons from this one
distillery.
"'In all, Morris Goodman with
drew 4,359 On his own permit and
1929 cases on permits belonging to
others. He also withdrew $50 bar
rels on permits to other Names"
Upon inquiry the agents found
that these fake permits were in
the Mellon National Bank, accord
ing to the article, instead Of being
properly in the files Of the Over
holt Distillery.
The agents then called at the
Mellon National Bank and request
ed that the permits be turned over
to them. They were referred to De-
wald Hicks who at first asked the
agents to return the neyt day This
they refused to do and insisted on
immediate delivery. Hicks then
turned them over.
Cases Dismissed.
"The evidence involving the re.
moval Of this whiskey from the
Overholt Distillery was submitted
to United States Attorney r. j.
Driscon, who promptly subpoenaed
thirty-two witnesses before the
Federal grand jury, resulting in
the indictments referred to. These
indictments were returned on March
8, 1921.
ION March 49,, 1921, Mr.. Driscoll
was very suddenly removed from
office and Walter Lyons was APP
pointed United States Attorney.
ION December 20, 1921, the United
States Attorney dismissed all these
indictments for insufficient evi.
dence.'"
CENTRAL HIGH ROMANCE
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