Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-21
Probe Indicates Output of IS
DistiIIeries Reaches 900,-
900 Gallons a Week.
SCOPE OF PLOT GROWS
AS FACTS ARE DISCLOSED
Four Millionaires Declared at Head
Of Conspiracy-Delivery System
Spans Entire Nation.
Es tire Associated Press.


CLEVELAND, Ohio, February 90
Aiore than two weeks of Federal grand
fury investigation here into an al
ieged nationwide conspiracy to vfo-
tate the eighteenth amendment have
served to show how extensive were the
operations of the supposed ring"
but have not brought in sight the epd
bf the inquiry.
As questioning Of witnesses goes on
from day to day. new links are forged
in the chain of evidence that now
teeches from San Diego to Providence
And links up ring" operations in New
York. Boston, Atlantic City, Baltimore,
Newark. Philadelphia, Chicago, ST.
Paul, Cleveland. Minneapolis, Duluth
and other large cities.
Before many days District Attorney
"A. z. Bernstein hopes to have indicted
between 20 and 100 persons for as
many as 100 overt acts connected
with the alleged conspiracy. While
the grand jury is in recess until Tues
day Mr.. Bernstein Is at work on the
indictments. having gone into seclu-
sion for that purpose. When the
grand jury returns it Is scheduled to
hold night sessions for the first time
in the history of Cleveland's Fed
eral Court.
Treasury Department agents have
been sent from Washington to ST.
Paul, Minneapolis and Philadelphia to
several days ago and to help round
up witnesses for whom there are out.
Standing unserved subpoenaS.
Scope of Inquiry Growing.
With the apprehension Of these wit
neSses and suspects, new evidence Is
expected, particularly in the operation
of Eastern subsidiaries OF the alleged
''ring.' The bringing in of the wit
nesSeS and suspects means an in
definite extension of the investigations,
since each contingent that goes into,
the grand jury room duplicates more
people and reveals more angles.
Forty arrests have been made in
the case and more than loo are likely
TO be involved, it has been consistent
iy stated. Among those who are still
sought are said to be four Philadel-
phia millionaires-"the Wall Street OF
the rum ring"
Among those definitely involved to
date are internal revenue officers,
prominent professional and business
men, heads and employees of indus
trial alcohol companies, railroad en-
ployes, automobile tranferrnen, Gus
TONER'S" truck drivers, policemen and
bootleggers already sentenced IN
other cases.
Some of those who testified to the
grand jury concerning their part In
tho rings operations have told how
far the alleged conspiracy had sur
passed their early conceptions OF It.
Stories enanating from the district
attorneys office from time to time In
fiicate the following operations Of the
t'rum ring"
Control 75 Per Cent OF Alcohol.
The conspiracy was headed by four
philadelphia millionaires.
Associated with the millionaireS
were 80 others who controlled rs per
cent Of the alcohol business In the
United States, regulating the price
from coasht to coast.
Fifteen distilleries were operated by
{he ring" producing $1,000,000 worth
of alcohol each week, at distillery
prices.
The output was sold to wholesalers
for Sl4O,00O,0 900 a year, and retailing
at SO to $40 gallon, brought the
country's alcohol bill for liquor from
this one source to over $500, 100000
IL year.
Nine hundred thousand gallons Of
alcohol were manufactured each week,
or 46.S00,000 gallons a year.
Initial establishment of two distil-
leries in Pennsylvania. two in Mary
land and one in Kentucky was FOL
lowed by establishment Of subsidiaries
IN various territories to sell the prod
Qct at Wholesale.
DistillerieS and subsidiary organiza-
tions were established under protec-
ton of local authorities and through
political influence.
Cleveland Is Center.
Later redistilling plants were estab-
1ished to convert the eastern-produce
aenatured product into marketable
beverage form.
Cleveland was chosen as a redis-
filling and distributing point because
Of Its lake and railroad facilities and
it's central location.
A redistilling plant was operated in
Philadelphia under the guise of a per-
fume factory.
Chicago was a main distributing
point for Illinois and Indiana, with
branches in smaller cities in those
states.
st. Paul and Minneapolis was the
site of a ring, which supplied neigh
boring cities and supervised distribu-
ton to the Pacific Coast.
Philadelphia received 10000 gallons
et alcohol week on a conservative
estimate.
Drums OF alcohol containing 100
gallons were 'watered" to make as
much as 200 to 800 gallons so as to
increase distribution and profits.
FIVE TAKEN IN RAID.