PROHIBITION LAW

Press, Volume LXVI, Issue 19851, 12 February 1930, Page 11

PROHIBITION LAW

—♦— I ENFORCEMENT OPERATIONS. BIG HOTEL RAIDED. (CNIfED PRESS ASSOCIATION—BY ELECTEIC TBLEOBATH—COPYRIGHT.) (Received February 11th, 9.5 p.m.) NEW YORK, February 10. Prohibition agents, under the direction of the Federal Prohibition Administrator, Mr Campbell, raided a ten million dollars hotel, which is one of the largest in the city. They seized liquor and arrested thirteen persons, who were alleged to be engaged in providing liquor to guests. Mr Campbell stated that the raid was designed for the provision of an equity action to force the padlocking of the hotel "from top to bottom." Oilier hot-el raids are expected here. At Philadelphia, eight persons, including three former Prohibition agents, were seized in connexion with the alleged diversion of eight million dollars' worth of industrial alcohol jo bootleggers from a distilling plant. CHARGES OF EVASION IN CHICAGO. NEW YORK, February 10. The Grand Jury at Chicago has indicted thirty-one corporations and 156 individuals on charges of diverting 1,000,000 gallons of alcohol a year for seven years into bootleg channels. Three hundred definite breaches of the Prohibition law were disclosed during the investigation which has occupied twelve months. The biggest conspiracy in the history of the Prohibition movement had been uncovered by Prohibition agents, according to a Chicago newspaper. More than 150 persons were involved in a syndicate operating all over tho country that flooded the United States with spurious liquor. The most astounding fact of all was that the Federal Government had supplied every drop of this liquor. Agents traced 4,000,000 gallons of industrial alcohol, which had been diverted into the bootleg trade. The basis of operations was the discovery t>y » former Bulgarian chemist of a formula for extracting essential oils from hair tonics, perfumery, and kindred products. This chemist s sudden rise to wealth provided the key to the solution of the mystery why so many new perfume companies wcro being established. MORE INDICTMENTS RETURNED. (Eeeeived Pebruary 11th, 8.40 p.m.) CHICAGO, February 11. Indictments citing 297 overt acts were returned, charging thirty-ono corporations and 156 individuals with Prohibition violations, following disclosure of operations throughout the nation of an alcohol ring which it was alleged had diverted a million gallons of industrial alcohol per year into bootleg channels since 1923. At Springfield (Illinois) indictments were returned charging two prominent food products corporations with Prohibition violation. The specific charges were suppressed. The indictments, the first of their kind, will bo pushed as test cases. The National Prohibition Administrator, Mr Doran, called the indictments in the Chicago area "the natural course of events, and there was nothing very sensational. That is all I am at liberty to say now. as matters are just coming to a head."