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- JOHY” UGAR HOOVER Cc DIRECTOR . WS. Begartment of Justize Cc Pureau of Investigation Washington, 2. C. MEORANUM FOR THE prrgotor: OCT gg 189 Agent Fay at the Chicago Office called by telephone yesterday morning to advise that Special Agents DiLillo end Palmers, assigned to the?Juice Grape Investigation had succeeded in disposing of @ carload of grapes on the Northwestern Railroad tracks at a loss of $1095.00; that no approaches have beenmade to either of these Agents while working on the railroad tracks, although subject Romano, one of the leeding racketeers, had sold grapes from « car placed next to that of the agents, and it wes assumed that Romano had performed that work for the purpose of sizing up Pelmere and DiLillo, as it has not been his prectice to sell grapes but merely to circulate around the cars where they were being sold. Dilillo observed the passing of funds, from one grape vendor to Romano tut did not overhear the conversation and does not know the circumstances attendant upon that transfer of funds, Agent DiLilio, however, obtained the number of the car from which these grapes vere sold end can identify the vendor when it becomes necessary to do eo at a later date. Agent Fay elso advised that subject Manhy Sohreiberg had communicated with Mr. Charles Irrgang, who is financing the grape business for the Agents, requesting ea conference yesterday. Irrgang, of course, had agreed and will advise the Agente promptly upon the conclusion of eaid conference, the subject thereof. Agent Fay desired instructions as to whether an additional car of grapes should be purchased and sold. I edvised him to make no further arrangements until I bad an opportunity to confer with Mr. Osesa of the Department. I conferred with Mr. Oseas, who stated he would like to have the Agents purchase and sell another cer of grapes, even though the Agents were under the impression that possibly a leak had occurred end the racketeers were advised of their plana, because he stated that if they suspected anything, the withdrawal of the Agents efter the sale of only one carload of grapes would confirm that suspicion and u her 53 - aN pereigr Sonn) RECORD ixy gee NOV 3 ein! COPIES PESTROYED NOV <8 1830 120 JUL 27 i964 . | i i Nathan Fie 1 4 =