Honolulu Star Bulletin

SMUGGLING RING
MAY HAVE BEEN
OPERATING HERE

That the arrest of an opium smuggling "hui" in San Francisco February 15 by customs men of that port may throw some light on the identity of the party who attempted to smuggle 400 tins of opium into this port on the Matson steamer Manoa recently, the shipment, however, being seized by the customs inspectors before it could be taken off the wharf, is believed here today.

According to the San Francisco Chronicle of February 16, the "ring," the branches of which are said to spread like the spokes of a wheel to every part of the United States, Mexico, Honolulu and the Orient, was unearthed the day previous by Capt. Joseph Head of the United States customs service, working under the directions of Surveyor of the Port Justus Wardell.

"A German banker of Mexico City," says the Chronicle, "whose name the authorities have withheld for international reasons, and a wealthy Mexican, who is under arrest, are said to head the ring.

Typed Code Employed

"Messages between members of the group were carried on in typewritten code to avoid detection, and other like methods were used to keep the federal officers from discovering the illegal trafficking. A mass of the coded messages has been found and customs officers are now attempting to decipher them.

"New arrests are expected here momentarily and last night Wardell wired to Washington to take up the case of the German banker in Mexico City, who has been manufacturing the opium, with the Mexican authorities. Wardell said yesterday that he had information that the banker had 30,000 cases of opium stored in Mexico City and he would ask the treasury department to request the Mexican officials to seize the drug.

One Member Confesses

"One of the members of the ring confessed to Wardell yesterday and laid bare the workings of the ring. Agents of the smugglers, according to the confession, are located in Hong Kong, Honolulu, El Paso, Mazatlan, San Francisco, Portland, Seattle, Chicago and New York.

Federal inspectors headed by Capt. Head, John Toland and E. E. Enlow of Special Agent Tidwell's office, raided the Chinese mercantile firm of Tsue Chong Wing & Co., 737 Washington street, late yesterday in an effort to find a quantity of the drug said to be concealed in the store. The member of the ring who confessed told Surveyor Wardell that the Wing Company was the distributor for the drug here. After searching up to a late hour last night nothing had been revealed.

Two Under Arrest

"Jose Delsardo, a wealthy Mexican, who formerly stopped at the Palace Hotel, and Ng Hee, a Chinese, have already been arrested as being implicated in the ring. Delsardo is said to have made arrangements for the operation of the ring with the German banker in Mexico City more than six months ago. Delsardo, it is alleged, lately assumed the name of R. J. Castello, and has lived in a downtown apartment house.

"Following the seizure of 400 cans of opium at Honolulu recently, Capt. Head picked up a lead on the ring in this city. His vigilance was rewarded last Saturday night, when he saw a man pass 20 cans of opium to Delsardo at Post and Mason street. Delsardo, Head says, took the drug to Sutter and Mason streets, and turned it over to Ng Hee."