Evening star., 1949-08-04
Stamp Counferfeiting
Added 10 Charges Of
Georgia Protection
~ the Assoc;otsd Press

BY the Assoeiatsd Press
ATLANTA, Aug. A. Former
Gov. M. E. Thompson and other
Georgia political leaders were ac-
cused last night of protecting
bootleggers who flooded the
States dry counties, with illegal
whisky.
A counterfeiting angle was
added to the already sensational
developments today.
State Revenue Commissioner
Charles Redwine exploded the
political bombshell. He said he
based the charges on the testi-
mony of a former Revenue De-
partment official. a special State
investigator and other State
agents.
Presented to Grand Jury.
Mr.. Redwine already has made
his information and exhibits
available to a Fulton (Atlanta)
county grand jury.
The testimony, as quoted by Mr..
Redwine. centered on the 1913
Thompson administration. The
commissioner also mentioned for
mer Gov. E. D. Rivers, Thompson's
political friend, former Revenue
Commissioners Glenn Phillips and
Downing Musgrove, former Liquor
Enforcement Chief T. M. Price
and big liquor dealers.
A 2-foot stack Of records were
turned over to Fulton Solicitor
Paul Webb. The exhibits show
more than 100000 in 1900 lille
gal sales to dry counties in a six
month period, from June IA. 1948,
to January 5, 1949, Mr.. Redwine
said.
He added they were seized in a
raid on an Atlanta liquor whole
sale firm. Seven cases Of whisky
also were conflscated. Mr.. Red
wine said the state tax stamps on
this liquor were counterfeit.
The far-flung liquor ring appar-
emily f1ourished under State pro-
lection, the commission charged.
Three witnesses, he added, spoke
Of a 50-cent per case "fee" on
the bootleg liquor. Special Inves-
tigator Charles Blaum was quoted
as saying the fee was added to
the list price to 60 into a cam
paign fund"
Elton Bishop, supervisor Of field
forces for the Alcohol Control
Unit from 1914 to June, 1948, was
quoted by Mr.. Redwine:
Information came to me that
there was an organized opera
ton Of selling tax-paid liquor in
dry counties with the knowledge
and consent Of State officials.
Revenue agents under me said
they had instructions from
'higher-ups' not to bother with
tax-paid liquor. ."
Il heard reports of this 5o-cent
fee. It was described as a 'slush
fund to me. but that's all I
know about it."
For Campaign Fund.
Mr.. Redwine said Special In
vestigator Blaum gave this in
formation:
He witnessed a meeting of
Georgia liquor wholesale dealers
in May. 1947, when Thompson
was governor and Phillips was
revenue commissioner.
1T was explained that
they had permission from the
governor and the revenue de-
partment to 60 to work in dry
counties and sell to bootleggers
directly.
"The list price was to be in
SO cents a case to 60 into
a campaign fund"
Thompson. Phillips and Mus
grove denied any part in the ring
outlined by Redwine.
Blaum told Redwine that re-
tailers held several meetings to
protest the alleged systematic.
organized how of whisky from
wholesalers to bootleggers. The
commissioner said Blaum describ-
ed one meeting:
Thompson came in and said
somebody in this room had ac-
cused him Of being in cahoots with
John Horace Bowen "a liquor op-
erator) and former Gov. Ed Rivers
in this wholesale liquor racket.
Thompson said this was a God
damn lie. Then he went to
pieces"
"This 5o-cent fee got too hot." 4"
Redwine quated Blaum. "They
had to drop it after a while. But
that was the original arrange
ment. Wholesalers them
selves have told me about it,"
Redwine said the firm raided by
his agents was the Richmond
Wholesale Liquors, Inc, operated
under a license to r. w. Best of
Augusta and Atlanta.
British Union Gusts Red
Who Criticized Royal House
BY the Associated Press