Evening star., 1944-03-05
81 Seized al Miami,
Black Market Exposed
In Railroad Tickets
By the Associated Press.

% tuc AsoOClateu EIcSS.
MIAMI, Fla, Mar. 4.-Director
]. Edgar Hoover of the Federal
Bureau OF Investigation an
nounced the arrest today Of 81
persons at Miami and Miami
Beach in the first step of a Ma.
tionwide investigation to stamp
out what he termed "a vicious
black market" in railroad reser-
vations.
He said those arrested included
16 railroad employees, IA hotel work
ers and one taxicab driver. The
Miami group was showing a profit
Of between $4,000 and $4,000 q
month, and Mr.. Hoover quoted two
railroad employees and hotel
worker as saying they planned to
buy q hotel with their gain.
Servicemen victimized.
The railroad men are charged with
violating the United States criminal
code which forbids the sale of any
service to passenger at a rate in
excess Of that charged other per-
sons for the same accommodation.
The hotel men were charged with
conspiracy to violate the same code.
This investigation is Nationwide,
extending into the North and to the
Pacific Coast" Mr.. Hoover said.
Other arrests will follow here and
probably in other parts of Florida.
"The viciousness of the whole
thing Is aggravated by the large
number Of servicemen who are un-
able to get reservations because
they can't pay the $40 to 500 fees
asked above regular railroad fare
while wealthy tourists can"
One Made 125 Deals.
Mr.. Hoover termed the fee-taking
both a racket" and a black mar
ket and disclosed that the FBI had
been working on Miami and Miami
Beach angles for three weeks. He
himself entered the investigation
10 days ago.
One man made 125 deals and
showed a profit of $1,000, Mr.
Hoover stated, without naming the
individual
All those accused will be prose-
cuted In Federal Court here by
Ernest L. Duhaime, assistant dis
trict attorney. Convictions would
make possible penalties Of two
years imprisonment and $4,000
fines for each violation.
The FBI director reported that
while there are so-called ticket
selling rings in various parts OF
the country. there is nothing to
indicate collusion between the
Miami group and those operating
elsewhere.
Suspects Listed.
He listed the railroad employees
against whom charges had been
placed as follows:
Florida East Coast Railway
Roger Joseph Barreto, ticket agent:
Larry L. Cole. freight station clerk
Mrs. Tressa B. Cunningham, dia-
gram clerk: James Frederick Dew.
hurst, ticket agent: Stanley George
Hewitt, ticket clerk; Mrs. Flora Post
Lee. diagram room clerk, and Terry
ORourke, ticket clerk.
Seaboard Air Line Railway-N. E
Brown, Jessie Adrian Mcintyre
Jack William Nichols, L. M. Perry
j. w. Taaffe, A. S. Wilburn and L
@. Wright, all ticket sellers.
Atlantic Coast Line Railway
Harry Goeggel, ticket seller, and
Fred L. Gust, city passenger agent.
The one taxicab driver under
arrest was listed as Harry Miller
and Mr.. Hoover gave the hotel en-
ployes' names as follows:
Louie Banack, Albert Douglas
Deverich, Morris J. Goldberg. Zack
j. johnson, Isiah King, Frank
Matarese, John j. McManus
Maurice Monte, Van Buren Morris
Eddie Peters. Leo Shaw, Ruff.
Thomas Williams, Irving Krame,
and George Fitzgerald.
All were released on bond Of $3.50
to $500 each.