Business activity dropped when investigators raided Chinatowns on both coasts; Chinese merchants in New York City lost $100,000 a week in sales.

Chinatown leaders fought back by appealing to politicians for help and by posing legal challenges to the constitutionality of the Justice Department investigations. Fortunately, in March 1956 a federal judge threw out the subpoena attack, calling it a “mass inquisition.” But by then, much damage had been done. Business activity dropped when investigators raided Chinatowns on both coasts; Chinese merchants in New York City lost $100,000 a week in sales. American authorities also leaked the Drumwright report to the press, which ran stories accusing the Chinese community of immigration fraud. (Chang 252)