Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-01
DELUGE OF BOGUS
RUM PERMITS SEEN
IN McCARL DECISION

Continued from First Page.l
well as the complete permits and
prescriptions"
In denying the Treasury the right
to use prohibition funds for any of the
three proposed methods, Controller
General McCarl pointed to his prior
decision, holding that the expenses
incident to the criminal proceedings
would not be questioned on the basis
that there was an extraditible crime
having some immediate connection
with enforcement of prohibition in
this country.
McCarl Denies Authority.
The present proposal Of the Treas
ury to replevin and then buy the pa
per, however, McCarl said, involves
proceedings In foreign country for
enforcement of prohibition in this
country" There is no authority. ex-
pressed or implied, in the national
prohibition act, or the appropriations
for enforcement, for proceedings in
foreign countries to stop the manu-
facture in such foreign countries OF
intoxicating liquors that might be
struggled into this country in viola
ton of the national prohibition act.
likewise, there is no authority, ex-
pressed or implied, for proceedings in
foreign countries to stop the manu-
facture in such foreign countries of
watermarked paper used by this coun-
try In the printing of permit and
prescription blanks.
I'm either case, in the absence of
express statutory authority or treaty
provisions, II would be a question,
after manufacture, of it becoming a
matter of stopping the smuggling into
this country. which is for administra-
tive consideration"
The McCarl decision was recognized
today by officials in close touch with
the situation as virtually tying the
hands of the administration in it's
proposed course o. action. Whether
any new attempts will be made in
Canada remains TO be decided fol.
lowing conferences between legal ex.
perts " the Department Of Justice
and the Treasury Department.
Four Indicted i'm Boston.
Pursuing further efforts to stop the
alleged conspiracy in prohibition pa.
per, the Treasury, through the Office
of the chief prohibition investigator
has already secured the indictment In
Boston of four men accused off hav
AAA6 liiS
device for putting the watermark
prohibition" in the paper. The men
who were charged with having de
frauded the United States by manu-
featuring the bandyroll in Holyoke
Mass, were arrested in New Yorl;
city, and will be tried in Boston Fed
eral Court March II.
Even should this case be success
full, however, the supply of paper
remains in Canada, along with the
entire machinery for it's further
manufacture. With a court decision
In Canada that the men on trial there
were not guilty OF violating any Ca
madam law. the situation leaves the
factory and operators there the OPP
portunity of turning out more paper
The supply of watermarked paper
in question, about II tons, was seized
by the mounted police on dock al
Montreal, according to records here
when 1t was about to be loaded on q
vessel bound down the St. Lawrence
River. 1t was in the custody of the
court during the criminal case, anC
is still being held temporarily by the
court until some decision may bt
reached as to how the United State:
may proceed further, if it proceeds
at all.