Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-16
100000 Gallons Yearly in
Philadelphia Diverted,
Governor Declares.
EXECUTIVE LAYS FACTS
BEFORE TREASURY HEADS
Arrangements Made for Co-opera-
ton in Stopping Leak-Tobacco
Companies Come Under Fire.

ARRANGEMENTS for submission OF
evidence gathered by agents OF the
State of Pennsylvania concerning
alleged diversion of alcohol into the
bootleg trade from Federal permittees
near Philadelphia were concluded at
:: conference at the Treasury today
between Secretary OF the Treasury
Mellon. Assistant Secretary Andrews
and Gov. Clifford Pinchnt "f PennSNi-
vania.
Following the conference of more
than an hour Gov. Pinchot dictated
q statement for the press IN the pres
ence of Gen. Andrews, and with some
suggestions from him, concerning the
reasons for the visit here OF the Penn
Svlvania governor.
NV purpose in coming to NashlnS-
ton" said Gov. Pinchot in ms state
ment, was 10 lay before secretary
Mellon the alcohol situation in Phlll-
Gelphia.
we have pretty vel beaten the
brewers. but enormous quantities OF
alcohol are still being diverted into
the bootleg trade. | pointed out 10 tne
secretary not only the increase OF %
per cent in alcohol production in the
Philadelphia district from ia TO
1925. but also that large numbers OF
FedefaI permits are eNidch'tN Ch-"cSN
in diverting alcohol.
Cites Tobacco Cases.
For example. | told him OF one
tobacco company which gets enough
alcohol each year for tobacco spray TO
treat twice the crop of the United
States and half of the crop of the rest
of the world.
Another company asked for enough
10 make two and one-half pounds of al
cohol to every pound of tobacco, and
Is now drawing one pound of alcohol
20 one of Tobacco. The normal is one
pound of alcohol to 1900 pounds OF
tobacco.
1t has been arranged that all facts
hearing on the alcohol trade in Penn
syIvania which are in possession of
the State administration shall be sub
mitted TO Secretary Mellon and Gen.
Andrews for their information and
action, and shall at once set men
at work tabulating and otherwise
preparing material.
at Cen. Andrews suggestion this
material will be submitted as early
as possible in order that 1t may be
used in connection with review OF all
these permits by the Federal Govern
ment, which review must be ternli-
mated by March 81.
'''lhe amount Ol diCOliol vi dN IL y coi
lv by concerns in Philadelphia, which
7 have reason to believe are not on
the level. is about 100000 gallons.
How much more, | do not know.
II shall also submit material bear
ing upon the need for revision of reSu-
lations in certain respects
THE diversion of alcohol in Phila-
deIphia is still going on on
a very large scale. This alcohol now
provides practically all of the illegal
drink manufactured in PENNSYLVANIA.
MY purpose In coming to Washing
ton is to assist the Government 10
stop that leak at the source.
Says Pittsburgh Was Worst.
In response to questions from the
large number of newspaper men who
had gathered in Gen. Andrews Office,
where the governor dictated his state
ment, Gov. Pinchot said the situation
under the prohibition administrators
in Pittsburgh. which was the worst
citv in Pennsylva MIA" (" was improving
rapidly.
THE change is marked and most
welcome" said the governor.
The situation at Philadelphia, how
ever. the governor stated was about
the same" He added that his report
on the Philadelphia alcohol diversions
cast no personal aSpeuSionS on Pro
hibition Administrator Murdock, eA-
planning that he had come to state the
facts, without reference to person
alities.
Gov Pinchot also said he had called
the attention of Secretary Mellon TO
the attitude of State legislators al
Harrisburg who were supposed to be
under w l.. Mellon" and who in
two previous sessions had been "op
posed TO dry legislation" and at the
present time were still opposed.
In reply TO questions as to his pur'
pose in calling the attention of Secre.
tary Mellon to this fact. the governor
replied that he had merely acquainted
the Secretary with the facts. The gov
ernor. however, would not be drawn
into d direct admission that he had
told this to Secretary Mellon in the
hope of having w. L. Mellon, nephew
of the Secretary, bring influence to
bear in favor of dry legislation for the
State. The governor predicted. how.
ever, that two ury bills, one on beer
and the other on alcohol, would be
enacted at Harrisburg.
Scores Attack on Nephew.
When the attention of Secretary
Mellon was drawn to the statements
by Gov. Pinchot concerning the State
Legislature and W. L. Mellon the
secretary SAID thdt prior 10 Gov
Pinchot's visit he had had no knowl
edge whatever that there was an
alcohol bill pending at HarrisburS.,
The Secretary said that concerning
the Inference that W. l.. Mellon oil
Pittsburgh, who is my nephew, has
control of the Allegheny delegation
in Harrisburg. it is an indefensible
insinuation.
''W. L. Mellon is a private citizen
enca ced in business in Pittsburgh.
and just because he is u nephew
of The Secretary of the Treasury is
no reason for exploiting him in this
direction.
This is something which has moth.
ing 10 do with enforcement of the
prohibition law. the purpose of the
appointed conference.
Assistant Secretary of the Treas
ury Andrews when asked fthe matter
brought up by Gov. Pinchot concern
ing alcohol in Philadelphia coincided
with any Information in the hands
of the Government here replied that
the conference this morning had been
in generalities with view to arriving
al a policy of cooperation between
the State and Federal governments
There would be ccmnlete co-opera