Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-02-22
Millionaires Head
Great Liquor Ring
Investigation Reveals

Cleveland, Feb. 2O-(AP)-More
than two weeks Of federal grand jury
investigation here into an alleged ma
tion-wide conspiracy to violate the
18th amendment have served to show
how extensive were the operations of
the supposed ring" but have not
brought in sight the end of the in
quiry.
AS questioning of witnesses goes
on from day to day, new links are
forged In the chain of evidence that
now reaches from San Diego to Pro-
violence, and links up ring" opera
tons in New York, Boston, Atlantic
City. Baltimore, Newark, Philadel-
phia, Chicago, Cleveland, st. Paul,
Minneapolis, Duluth and other large
cities.
Before many days, Dist Atty.
Bernstein hopes to have indicted be-
tween 20 and 100 persons. The grand
jury is in recess until Tuesday. When
1t returns 1t Is scheduled to hold night
sessions for the first time in the his
tory Of Cleveland's federal court
Treasury department agents have
been sent from Washington to st.
Paul, Minneapolis and Philadelphia
to speed UP arrests on warrants is
sued several days ago and to help
round up witnesses for whom there
are outstanding unserved subpoenas.
Forty arrests have been made and
more than 100 are likely to be involv-
ed, 1t has been consistently stated.
Among those who are still sought are
said to be four Philadelphia million
n irn fbn oil
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 transfer men,
customers" truck drivers, former
policemen and bootleggers already
sentenced in other cases. Stories
emanating from the district attor-
ney's office from time to time indi-
cate the following operations of the
rum ring;
The conspiracy was headed by four
Philadelphia millionaires.
Associated with the millionaires
were 80 others who controlled IS per
cent. of the alcohol business in the
United States, regulating the price
from coast to coast.
Fifteen distilleries were operated by
the ring" producing $1,000,0o0 worth
Of alcohol each week, at distillery
prices.
The output was sold to wholesalers
for $140.000.000 a year. and retailing
at SO to $40 a gallon brought the
country's alcohol bill for liquor from
this one source to over $500.000.000
year.
Nine hundred thousand gallons Of
alcohol were manufactured each week.
or 46S00.000 gallons a year.
Initial establishment of two dstil-
leries in Pennsylvania, two in Mary
land and one in Kentucky was followed
by establishment of Subsidiaries in va
rious cities to sell the product at
wholesale.
Distilleries and subsidiary organiza-
tions were established under protec-
ton of local authorities and through
political influence.
Later redistilling plants were estab-
lished to convert the eastern-produced
denatured alcohol into marketable bev-
erage form.
Cleveland was chosen as redistill-
ing and distribution point because of
it's lake and railroad facilities and its
central location.
A redistilling plant was located 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 distri-
button to the Pacific coast.
Philadelphia received 10000 GAL
Ions Of alcohol a week on a conser-
yative 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.