Evening star., 1935-02-06
VAST RUM GANG
HEREFACES PROBE
Thousands of Gallons of
Liquor Struggled In From
Three States.

men have smuggled several hundred
thousand dollars worth of contraband
liquor into Washington since repeal
of the eighteenth amendment will be
the second case presented to the
special grand jury called to investi-
gate P. w. A. fraud charges. United
States Attorney Leslie c. Garnett an
| nounced today.
This case, according to investiga-
tors establishes definitely that large
scale bootlegging is going on in
Washington despite the availability
of legal liquor
An undercover investigation by
agents of the Alcohol Tax Unit has
established that alcohol and whisky
have been run into Washington from
New Jersey, Maryland and Virginia.
Washington was described as the
distribution center" for this untaxed
liquor.
1t was reported that Investigators
have learned more than Sl50000
worth Of alcohol has been shipped to
Washington from single New Jersey
plant without payment of any tax.
The loss to the Government in unpaid
taxes. it was believed, will run higher
than 100000.
Sold as Taxed Liquor.
1t was expected the evidence will
show the alcohol brought in from New
Jersey has been used in preparing
supposedly legitimate brands Of
blended whisky, much of which has
been sold as legally taxed liquor.
Most of the liquor from Maryland and
Virginia is Of the "moonshine" variety
and is supposed to have been peddled
in pint and half pint lots in the
poorer sections of the city.
Assistant United States Attorney
Henry Schweinhaut, who will present
the case to the grand jury. will seek
indictments against 20 or IS men, in
Guiding several residents of Wash
ington.
Board Approves Inquiry.
Announcement of the grand jury
inquiry into bootlegging here was
hailed by members of the Alcoholic
Beverage Control Board, who reiter-
ated their intention of strict license
supervision. They pointed out the
board has no power except over
licenses.
Mrs William Beverley Mason, vice
chairman of the board, said:
I'VE have no information In hand
of any organized gang which is en-
gaging in bootlegging of beverages. but
if proper authorities can produce the
evidence we hope that the result will
be to stamp out Illicit dealings"
A similar statement was made by
Isaac Cans. A. B. c. Board member,
who stressed that the board, in CO.
operation with police, has been check
ing up very closely on the operations
of the licensed dealers and has cited
a number of license holders before the
board on various charges. including
failure to observe the tax-stamp rules.
President Interested.
Meanwhile, national efforts to wipe
out the illegal liquor traffic occupied
the attention of President Roosevelt.
He told newspaper men at his press
conference that through cooperation
between this and other countries, the
smuggling of liquor into the United
States has been reduced sharply.
The Chief Executive said that since
prohibition was repealed, runners of
alcohol have supplanted the old-fash-
ioned liquor runners. The alcohol
traffic up until recently was so large
the United States was being defrauded
of between $40 1000, 900 and $50, 900 900
In taxes. Mr.. Roosevelt said.
There still are some unplugged
holes, he continued, but explained that
by bringing about closer cooperation
with Great Britain. Canada, Cuba,
Mexico and the Bahamas, illegal
sources Of supply are being shut down
rapidly. Newfoundland and st. Pierre
he named as two sources which had
not yet been closed.
Pleased by Canada's Aid.
The President was particularly well
pleased with the assistance Canada Is
rendering in patrolling the border and
reporting the clearance of all ships
bound for the United States Probably
for the first time in history, he said,
the two countries have locked arms for
strong border control.
Under the new agreement with Can
ada, the United States supplies air
planes for border patrol duty and the
Dominion furnishes a mounted police
officer to ride with the pilot, thus
making it possible to land on either
side Of the border.