The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-04-03
B0MB|NGLA|D
TO GANG king
INDICTED HERE
Lorenzo Juliano, Suspect in
Indianapolis Booze Case,
Held in Chicago.
BLAST SOLUTION SEEN
u. S. Agents Declare Key Is
Found to Terrorism
Campaign.
BLAST SOLUTION SEEN
BY G. G. NICOLET.

CHICAGO, April 3.-The special
intelligence department of the
United States Government stepped
into Chicago's political bombing
war" today, arrested a Well-knoWn
gangster and announced his arrest
would lead to solution of the bomb
ing of the homes of Senator Charles
S. Deneen and Judge John A. Swan
son.
The gangSter was Lorenzo Juliano,
wealthy alcohol racketeer, in whose
home Federal agents found thirty
eight sticks of dynamite Saturday.
He was arrested by Pat Rocke, vet
eran investigator for the Govern
ment'S special intelligence depart
ment.
Within an hour after Julianos
arrest Roche took into custody Ar
thur Forshan, said to have been an
under cover agent for the Federal
prohibition department in Indian
spolis. Four others whose names
were withheld also we're arrested.
See Bombing Solution
Roche then announced that the
arrests will give us leads which will
result in solution of the mysterious
bombings."
The secrecy which surrounded the
arrests and questioning gave rise to
)Snany rumorS, chief among which
were:
That Gov rnment operatives had
solved the murder Of Diamond
Toe" Esposi ', whose assassination
vas attributed to his activity in be-
half of Senator Deneen's anti-ad-
pinistration faction.
SD That one of the men under arrest
= lad confessed that under JuIfanos
ORDERS he had participated in six
murders and twelve bombingS.
THAT one prisoner admitted he
was Juliano's special agent" in the
bombings of the homes of Deneen
and Swanson.
That the arrests, coupled with the
arrival of Mabel Walker Willie
brandt, assistant United States At
torney General, indicated intention
of the Government to investigate
Chicago'S war of gangsters and pol
iticians.
Indicted in Indianapolis
Juliano was arrested in the Ken
sington district, in the southwest
section of Chicago's suburban area.
This section has been the scene of
nearly a dozen gang slayings in the
last few months.
Last week Federal agents found
a truckload of alcohol in a garage
at JUliano's home. 1t was said he
was being sought last week when
raiding squad of Federal prohibi-
ton agents shot William Beatty,
municipal court bailiff and Repub-
lican ward leader
Juliano and more than ninety
others were indicted two months
ago at Indianapolis for alleged con-
spiracy to violate the prohibition
law
Forshan, indicted with Juliano,
was arrested while he was attempt
ing to extort a $375 bribe from a
Blue Island saloon keeper, also un-
der Indictment.
The link between Juliano and the
assassination of Esposito, powerful
Sicilian leader, was not supported
by any information made public by
Government operatives.
Hint at Fatal Break
It had been understood Juliano,
ruler of Chicago Heights gangsters,
was close friend of Diamond
Joe's," and that he had aided "Dia-
mond Joe" in the latter's race for
ward committeeman in the old
. Bloody Nineteenth" ward.
There we're reports, however, that
#uliano might have had some hand
n Esposito's death, because of Es-
posito's failure to protect certain
alcohol gangs, which it was charged
S1e had guaranteed.
EspoSito's death has been at
4 ributed variously to politics and
hen to vengeance of alcohol gang
kters. He supported Senator De-
4heen and Judge Swanson against
the administration faction headed
2by Mayor William Hale Thompson
Rnd States Attorney Robert E.
Grove, Judge Swanson's opponent
For the Republican nomination for