Evening star., 1925-11-09


| livered yesterday at the Chicago con-
vention of the Anti-Saloon League. in
| which he used the names of Pennsyl-
vania concerns which he charges have
been granted permits for the with
drawal of millions of gallons of alco-
hol that ultimately found their way
into the bootleg trade, was regarded
here today in some quarters as the
severest attack made on prohibition
| enforcement.
Declaring that mot drop of al.
cohol or OF intoxicating liquor can be
| legally manufactured. stored, trans
ported or sold without a Federal per-
nit. the Pennsylvania Governor said
that the Federal permit Is the first line
of defense against violations of the
law. He quoted Commissioned Haynes
TO show that the Federal Government
alone has the responsibility for the
conduct of the permit system, and con-
tinued'
Hits Granting OF Permits.
I'm spite of such abundant power,
the fact Is that the Federal permit
has not been used as 1t should have
been used to keep known lawbreakers
out OF the business of breaking the
law. With facts in their possession
sufficient to arouse the suspicious of
a woolly lamb, Federal officials have
been granting permits for the max.
ing and the selling of alcohol TO com.
panies officered by known violators
of the law. and have refused to cancel
these permits. even when the law
breakers had finally been indicted for
their law breaking"
Gov. Pinchot then proceeded to give
in detail a list of cases in which he
charged the Federal permits for with
drawal of alcohol had been misused.
He gave the names of concerns and
persons, which, however, are omitted
here. He said.
Take the case Of the - corpora
ton of Philadelphia. Despite the fact
that in 1924 over 25, 600, 900 proof gall
Ions a year of alcohol We're produced
under Federal permit in the Philadel-
phia district, this corporation was
granted permits for making, ware
housing and denaturing an additional
unlimited Quantity of alcohol.
Attacks Company Heads.
When this corporation applied for
its permits its president was a man
known to be. associated. with law
beraking concerns. Its secretary was
a man whom Federal agents reported
as the president of sales corpora
ton in Philadelphia which was con-
nected with a notorious reshipment of
$500 barrels of whiskey. which the
Federal records say were part of
Overholt returned from France. placed
in warehouse in Eddington and later
seized in Lipschultz's raid The
agents also recommended disapproval
for any concern that Mr.. - is con-
nected with He Is at present await
ling sentence for bootlegging.
Yet when the stock held by these
men was transferred TO the vice presi
dent of the company. himself connect
ed with an Indiana distillery. Commits
sioner Haynes was willing, as he said
in letter of October s, 1924, that
these permits should be granted-and
they were granted.
This case is given added point
when We remember that 1t Is through
the camounage of denatured alcohol
that the huge streams of poison drink
flow into bootleg channels In the
, United States the production Of de
natured alcohol increased from 29, 600 ),
600 wine gallons in 1920 to 50 900 ,00o
wine gallons in 1925. OF that huge
increase, $4,000. 600 gallons were al
legged to be used in making those
kinds OF denatured alcohol from which
the denaturants are easily removed
l say alleged because no one knows
how much OF IL was ever actually de
natured.
| AicOnOI lnaccOunted fOr.
Take another case, that of the
-- Co, also of Philadelphia. On
April IL, 1928 Federal agents reported
that the accounts of this company
showed several thousand gallons OF
alcohol unaccounted for Further. in
letter from Chief of General Pro
hibition Agents Yellowly. dated June
%, 1928, Commissioner Haynes was
informed that the company was a
mere blind to cover a dstillery of
New Jersey, that its products are
never denatured and are sold direct TO
the bootlegging trade.
I'm the face of these facts the
company was given permit to with
draw, denature, and sell $4,000 gal
Ions of specially denatured alcohol each
month until May, 1928, and 275,ooC
gallons thereafter, until they were
indicted in July of this year for
diverting pure alcohol as denatured
Federal statutes. Their permit has
not even yet been revoked"
Another case, that of the -
Co. of Philadelphia. Chief of Genera
Prohibition Agents Yellowly or
April Is. 1924. advised Commissions,
Haynes that Division Chief Sans re
ported that the company had no,
been acting in good faith with the
department" that he concurred in q
recommendation for the disapprova
of its application for an increase Of
an increase of alcohol, and advised
that, criminal prosecution be started
against 1t for conspiracy
Permit Never Revoked.
I'm spite of the obviously fraudu
lent character of its business the com
pany permit has never been revoked
I last Winter in a special message
to the Legislature urging the passagt
of a bill which would have stopped
this poison alcohol traffic in Penn
slyvania, l showed that in the Cit.
of Philadelphia alone, enough de
natured alcohol was alleged t.
to meet every possible legitimate
requirement in the manufacture o.
more tobacco than is grown ir
the whole United States. Within Z
few weeks after this public state
nent Commissioner Haynes author
. ized a Arm of cigar manufacturers II
the City of Philadelphia to withdraw
5000 gallons a month Of denaturet
. alcohol, or at the rate Of 100000 gal
Ions a year-more than enough fol
treating the entire tobacco crop o.
the world.
Until this permit for IS 900 gallon.
per month was allowed by Commits
sioner Haynes. during Is years of 1t.
manufacturing of tobacco, this con
Germ had never used in all over 34Sl
worth of any denatured alcoholic fluid
Specially denatured alcohol can b,
sold legally only to manufacturer
: holding permits from the Federal Gov
F. ernment. to be used in making othe,
products. Here is, and is well known