AFFIDAVIT IN SUPPORT OF MOTION TO VACATE DECREE AND GRANT REHEARING In the District Court of the United States, Northern District of Illinois, Eastern Division United States of America, complainant, v. Robert Mulcahy and Romain Blakesly, defendants. In Equity No. 3798 STATE OF ILLINOIS, County of Cook, ss: AFFIDAVIT Robert J. Mulcahy being first duly sworn, on oath says that he is one of the defendants in the above-entitled proceeding, and that he was and is the owner of the liquor referred to in the bill of complaint filed herein, subject to a lien thereon in favor of one Harry S. Tansey, as hereinafter set forth. Affiant further states that about 3 weeks prior to January 5, 1925, he retained Mr. Frank J. Jones, a member of the Chicago bar, with office at 210 North La Salle Street, in Chicago, to represent him in this matter, but that he had not paid the said Jones any retainer; that previously he had been represented by Mr. Charles A. Williams, a member of the Chicago bar, who withdrew from the employment; that on January 4, 1925, affiant talked with said Jones in his office, and was advised that the above-entitled cause would be on Judge Wilkerson's trial call on the following day, but that affiant need not come to court for the reason that the case would not be tried on January 5, but would be continued to January 16, 1925. Affiant further says that except on the occasion above mentioned, he was never at any time informed that the said case was set for trial, and was not informed of any continuances or applications for continuances. And affiant further states that he was not present at the hearing before his honor, Judge Wilkerson, on January 5, 1925, for the reason hereinbefore stated. Afliant further says that he had and has a complete and valid defense to the sa'd bill of com; laint herein before referred to, and that the nature of his defense was and is as follows: (1) That on or about March 9, 1923, Harry S. Tansey was the owner of several thousand shares of the capital stock of Grommes & Ullrich, an Illinois corporation, theretofore engaged in the business of dealing in intoxicating liquors, etc., and then the owner and possessor of a large quantity of such intoxicating liquor and other merchandise; that on or about the date aforementioned, said Tansey sold to affiant to wit: 1,722 shares of said capital stock of said corporation, at the price of $95,000; that affiant gave in lieu of cash payment for said stock his note dated on or about March 9, 1923, for the principal sum of $95,000, payable to the order of said Tansey 60 days after date thereof, with the express understanding and agreement that in event of a dissolution of said corporation, and a distribution of its assets to its stockholders prior to the payment of said note, said Tansey should have a lien on such assets so distributed to affiant, as security for the payment of said note; a copy of which note, marked "Exhibit A" is attached hereto and made a part hereof; that shortly thereafter the said corporation of Grommes & Ullrich was, pursuant to vote of its stockholders, formally dissolved and its charter surrendered and that pursuant to the terms of dissolution the stock of liquors then on hand was distributed pro rata among the then stockholders; that pursuant to such arrangement there was distributed to affiant, so being the owner of said 1,722 shares of said stock, a corresponding number, or 1,722 packages of said liquor; that the affiant believed and represented that he would be able to obtain the necessary permits to enable him lawfully to sell the said liquor to drug stores, hospitals, or other parties having permits to purchase the same, and turn it into money; that pursuant to the agreement made at the time of the sale by said Tansey to affiant of said 1,722 shares of stock, to secure the payment of the said note to said Tansey, affiant agreed to and with said Tansey that from time to time, as he should be able lawfully to sell the said liquor he would turn over to said Tansey the moneys received from such sales, to be applied in partial payment of the said note; that said Tansey should have a lien on the said liquor to secure the payment of the said note, and that in the event that affiant should be unable lawfully to sell the said liquor that then he would turn the same over to said Tansey in satisfaction of the said note; and affiant denies that he purchased the said liquor from said Tansey or from said corporation of Grommes & Ullrich, but on the contrary avers that he acquired the same in the manner herein related. (2) Affiant further represents that owing to circumstances which subsequently arose he never made any effort to dispose of the said liquors, and has never paid to said Tansey the said note nor any part thereof and that he still owes said Tansey the face amount of said note, to wit: $95,000; and that said Tansey, so far as affiant is advised, is still the owner and holder of said note. (3) Affiant further. represents that the liquor hereinbefore referred to (approximately 1,722 packages) is the same liquor referred to in the bill of complaint filed herein and which is therein described as "about 1,700 cases of Grommes & Ullrich intoxicating liquor." (4) Affiant further represents that on March 30, 1923, and continuously at all times prior thereto, to wit: from the date of going into effect of the National Prohibition Act, the said Grommes & Ullrich was the holder of a permit from the Federal Prohibition Department, authorizing and permitting the said Grommes & Ullrich to keep in its possession large quantities of intoxicating liquors and also to sell the said intoxicating liquors; that on March 24, 1923, said Grommes & Ullrich was the owner, and lawfully in possession of a large quantity of intoxicating liquors, including the liquor here in question, all of which liquor had been lawfully acquired by said Grommes & Ullrich prior to June 30, 1919, and on all of which liquor the said Grommes & Ullrich, prior to said June 30, 1919, had paid in full all Federal taxes; that on March 24, 1923, affiant was the owner of 1,722 shares of the capital stock of said Grommes & Ullrich, a corporation, acquired as hereinbefore recited, and that theretofore the stockholders of said Grommes & Ullrich had voted to distribute the then remaining assets of the said corporation in kind and pro rata to the stockholders, and that pursuant to such action of the stockholders, there had been distributed to affiant to wit, 1,722 packages of liquor (said packages consisting of cases and jugs) being a part of the liquor then lawfully owned and possessed by said Grommes & Ullrich as hereinbefore stated; that on said March 24, 1923, affiant made application in writing to the Federal prohibition director at Chicago, Ill., for a permit to transport the said 1,722 packages of liquor from the premises of the said Grommes & Ullrich at 114 West Illinois Street in Chicago, where they were then stored, to premises at No. 2419 West Monroe Street, in Chicago, which premises it was declared would be used as a private warehouse by affiant; that subsequently and on March 30, 1923, the said application was approved and permit granted in accordance therewith, authorizing the transportation of the said liquors from and to the premises in said application mentioned, by Roscoe C. Andrews, who at that time was Federal prohibition director for the State of Illinois, a copy of which application and permit and of the instructions printed on the reverse side thereof, is attached hereto marked "Exhibit B" and made a part hereof. (5) Affiant further represents that in and by said permit it was required that the transportation of said liquors must be completed on or before May 1, 1923; that such transportation was begun and completed on to wit, the 8th day of April A. D. 1923; that every movement in and about the transportation of said liquor was known to said Federal prohibition director, and was conducted in the presence and under the supervision of agents and representatives of said prohibition director, by whom they had been detailed for that purpose; and that all of said liquors were transported to and placed in the said premises at No. 2419 West Monroe Street in Chicago, Ill.; that the premises occupied by affant, and in which the said liquors were stored, consisted of the second and third floors of the building known as No. 2419 West Monroe Street; that said premises were equipped with steel doors and with steel bars over all windows, all securely locked; that no one other than affiant had access to the said premises, and that no other goods were stored therein than the liquors hereinbefore mentioned; that the said premises constituted a private warehouse of affiant over which he had sole and exclusive control and dominion. (6) Affiant further represents that prior to the date of seizure of said liquors by the United States marshal, a number of packages thereof had been taken and removed by burglars, being persons unknown to affiant, and affiant is informed and believes, and so states the fact to be, that since the said liquors were seized, and since they have been in storage in the Government warehouse, a number of other packages were taken and removed from said Government warehouse by persons unknown to affiant; affiant does not know and is not able to state how many packages were so taken, nor how many now remain in said Government warehouse, and affiant avers that he is not able to state the exact value of the liquor which now remains in said Government warehouse, but that the total value of all that remains is less than $95,000, which is the amount of said Tansey's lien. (7) Affiant further states that he denies that he was guilty of any violation of law either in acquiring the ownership of the said liquor or in the mode of its acquisition; or in the transportation of the same to the premises at 2419 West Monroe Street, herein before referred to; or in keeping the same in the said premises or in the manner in which the same were kept therein, or in any other respect whatsoever, but avers that he has at all times and in all things, faithfully and strictly complied with all the requirements of law; and denies that the said liquors or the place wherein they were kept, constituted a public and common nuisance, and denies that there was anything unlawful or objectionable in the keeping or the manner of keeping the said liquors in said private warehouse. And further affiant saith not. ROBERT J. MULCAHY. Subscribed and sworn to before me, a notary public in and for Cook County, Ill., this 30th day of January A. D. 1925. [SEAL] ESTHER M. CONWAY, Notary Public. EXHIBIT A CHICAGO, March 9, 1923. $95,000 Sixty days after date I promise to pay to the order of Harry S. Tansey ninetyfive thousand no/100 dollars at room 710, Chicago Title & Trust Co. Building, Chicago. The undersigned hereby makes application for a permit to transport the liquor described below and now stored in premises at 114 West Illinois Street, Chicago, Ill., used as a private warehouse by Grommes & Ullrich to 2419 Monroe Street, Chicago, Ill., which premises are or will be used as a private warehouse by Robert J. Mulcahy, such transportation to be completed on or before May 1, 1923. The undersigned hereby swears or affirms that the above statements are true; that he is the sole owner of the liquors described above; that they were legally acquired and fully tax-paid, and may be legally used for beverage purposes in his private dwelling. This permit is not to be construed as a license or privilege to violate any State or local law. ROBERT J. MULCAHY. Sworn to and subscribed before me this 24th day of March 1923. FRANCES L. STEINER, Notary Public. The above application is hereby approved and permit is accordingly granted authorizing the transportation of the liquors described above from and to the premises mentioned, provided, however, that such transportation must be completed on or before May 1, 1923. Dated this 30th day of March 1923. ROSCOE C. ANDREWS, Federal Prohibition Director, State of Illinois. EXHIBIT B INSTRUCTIONS This form is to be used for application for and permit to transport intoxicating liquor legally acquired and possessed for beverage purposes from the private dwelling of the owner or place of storage to a private dwelling or place of storage. The applicant will give the location of the premises and the name of the occupant and the purposes for which such premises are used, such as "dwelling," "warehouse," etc. Under "Kind of liquor," in column 1, will be entered the description, as "John Doe whisky," "Port wine," etc. In column 2 the number and kind of packages, as "1 case," "12 quarts," "1 keg," etc. In column 3 will be entered the serial numbers of packages, if any. In column 4 will be entered the quantity in wine gallons of each kind of liquor. In column 5 will be given the date when such liquor was acquired, the manner in which acquired, such as "purchase," and the name of the person from whom procured. If the liquor was procured subsequent to July 1, 1919, evidence must be submitted to show legal possession. Before forwarding the application to the Federal Prohibition Director the applicant must appear in person before a person authorized to administer oaths and there sign and swear to the form. The officer taking the oath, unless he be a deputy collector of internal revenue, must affix his seal or other evidence of authority to administer oaths. See article XV, as amended, of regulations 60, for further instructions relative to removal of beverage liquors. I, Hoyt King, clerk of the United States District Court in and for the Northern District of Illinois, do hereby certify that the annexed and foregoing is a true and full copy of the original affidavit of Robert Mulcahy, one of the defendants, in support of motion to vacate decree and grant rehearing, with exhibits A and B thereto attached, in the case of United States of America v. Robert Mulcahy and Romain Blakesly, Equity No. 3798, filed January 31, 1925, in said case, now remaining among the records of the said Court in my office. In testimony whereof, I have hereunto subscribed my name and affixed the seal of the aforesaid Court at Chicago, Ill., this 18th day of February 1942. [SEAL] HOYT KING, Clerk. · By EDWARD E. DOUGLAS, Deputy Clerk. [From the Chicago Tribune, Feb. 25, 1942] UNITED STATES DESTRUCTION OF WHISKY IN 1923 TO BE REVIEWED Government destruction of the "liquid" assets of the old Grommes & Ullrich Corporation, whisky dealer, will be reviewed by the House of Representatives Committee on Claims, it was indicated yesterday. Hoyt King, clerk of the Federal district court, said Representative Dan R. McGehee (Democrat, Mississippi) had requested files on the case after one of the company's stockholders, Harry S. Tansey, former municipal court bailiff, had filed a claim for $81,000 plus interest against the Government. The company in 1923 passed out thousands of cases of choice spirits to stockholders in return for their investment. Tansey charged that prohibition agents unlawfully destroyed 1,722 cases-one for each share of stock-belonging to him. Ten stockholders, including Tansey, were freed by a Federal court jury in 1923 on charges of conspiring to violate the prohibition laws. UNITED STATES DISTRICT COURT, OFFICE OF THE CLERK, Chicago, February 24, 1942. Re Harry Tansey, D. C. 10979 and 11474. Hon. DAN R. MCGEHEE, House of Representatives, Washington, D. C. MY DEAR CONGRESSMAN: Beg to refer you to my letter of February 18, 1942, in which I asked you to advise this office whether you wished the record of the depositions taken in New York City and which are a part of the files in case 11474. I am enclosing three certified copies of the final orders of the above cases. As I stated in my previous letter, there are no exhibits on file or record of the testimony taken during the trial. Yours very truly, HOYT KING, Clerk. In the District Court of the United States for the Northern District of Illinois, Eastern Division, Saturday, December 1, 1923. No. 11474 The United States v. Grommes & Ullrich et al. Present: The Honorable Evan A. Evans, judge. This being the day and hour to which the further trial of this cause was on yesterday continued come again the parties by their attorneys and the defendants in their own proper persons; come also the jury who were duly elected, impaneled, and sworn herein as aforesaid and the trial of this cause proceeds and the jury now here after hearing all the evidence adduced, arguments of counsel and charge of the court retire to their room with a sworn bailiff to consider of their verdict and afterwards return into court and render their verdict and upon their oath do say, "We, the jury, find the defendant not guilty." Therefore it is considered by the court that the defendant go hence without delay. UNITED STATES OF AMERICA, Northern District of Illinois, ss: I, Hoyt King, clerk of the United States District Court in and for the Northern District of Illinois, do hereby certify that the annexed and foregoing is a true and full copy of the original order entered December 1, 1923, In re United States v. Grommes & Ullrich et al., D. C. 11474, now remaining among the records of the said court in my office. In testimony whereof, I have hereunto subscribed my name and affixed the seal of the aforesaid court at Chicago, Ill., this 18th day of February 1942. [SEAL] HOYT KING, Clerk. In the District Court of the United States for the Northern District of Illinois, Eastern Division, Monday, October 6, 1924 Present: The Honorable George A. Carpenter, judge. Comes Edwin A. Olson, attorney for the United States and for good cause shown, it is hereby ordered that the United States marshal of the northern district of Illinois, be and he is hereby authorized to dispose of the exhibits at private sale to any person having a permit to buy liquor under section 27, National Prohibition |