Clipped From The New York Times
NEW $3,000,000 RDM FRAUDS REVEALED 30,000 Cases of Whisky Taken From Warehouses Here on Fake Permits in December. HICH OFFICIALS INVOLVED Director Day Recommends Dismissal of Several Agents Deniea Ha Intenda to Resign. Thirty thousand cases of whlaky. valued at .t.onO.CiKi. wore withdrawn from I bonded warehouses In this city In De-j cember on forged permits, according to a Government agent, who haa been at work on the cae. I The Investigation la being carried an I hv Several H a r. a r. a - . ik. n.wni. ment. Including the Department of Justice and the Special Intelligence' Unit of the Internal Revenue Bureau. It has taken a wlJo range and may Involve Government employes a a well as bootleggers In many parta of the country. The Investigation ia being carried on with the utmost secrecy, but it was Intl-mmed that the true story would never com- to light becau.-e of the Influential persons ullcicU to be involved. In this .innc Hon, it was said last nlcht that Rlph A. Day. Federal Prohibition Director rf this Stste, had recoirlmenilPd to Washington the lla-misal of several clerks. He appeared yesterday to be gn atiy troubloi over the conditions in his office, but he refused to ro.T.mfnt on the us of the forged permits. He will go to Wsshlngton today to confer with his superiors relative to conditions In this city. Hugh McQuillan, head of the Special In tell 1- fence Unit of th Internal Revenue lureau. In charge of the Investigations here, will also go to Waahlngton. Director Day again denied that he Intended to resign, it had been reported for three weeks that n would soon relinquish th r-lace. He reiterated that the sole reason for the recent resignation of Colonel Herbert G. Catrow. his chief ssslstant. was because he had completed the work for which he had been appointed: that he had been engaged principally because of his ability as an organizer, and that when be had finished this work there was nothing else for him to do. Colonel Catrow Is Treasurer of the National Republican Club. (A West Fortieth Street, and for many years has been a close friend of Director Day. it was rumored last night that Peter McCoy, an Aastatsnt United States District Attorney and close friend of Director Iay. waa slated to succeed Mr. "straw. Mr. McCoy haa been Assistant The Federal jury nearlng the casw (against John Dunston. President of Jack's. Inc.. a corporation which oper ates Jack s Kestaurant at Forty-thlrU Street and Sixth Avenue, waa unable to agree after deliberating nine hours, and was 'dismissed yesterday by Judge John C. Knox. The principal Government witness were Prohibition Agents Iasy Klnstein and Moe Smith and William Hclnxe. a waiter. It was raid Dunston wculd be placed on trial again early next week.