JUDGE ANGRY

Grey River Argus, 3 August 1935, Page 7

JUDGE ANGRY

RACKETEER WINS OUT Acquitted by Jury INCOME TAX EVASION CHARGE. (Aus. and N.Z Cable /.esn.) (Received August 2, 5.5 p.m.) i NEW YORK, August 1. At the town of Malone, Arthur Pregenheimcr, known to the underworld as “Dutch Schultz” was acquitted by a jury of the Federal Court today on a charge of having defrauded the Government of over one hundred thousand dollars of income tax, due on his vast profits from the sale ol illicit liquor during the prohibition regime. This was his second trial. In the first trial the jury reached a deadlock. The present jury deliberated for over twenty-eight hours. Their verdict came as a shock to the Judge presiding. Judge Bryant, whose anier increased when the gangster grinnM at the crowd, which responded wit® cheers and applause. “Before I discharge you,’’ Judge Bryant scornfullv addressed the jury, “I will have to say that your verdict is such that it shakes the confidence of ’aw-abiding people in integrity and truth. You have rendered a blow against law enforcement, and given an encouragement to penpie who would flaunt the law.” The evidence at the trial revealed that Flegenheimer had made a fortune from the sale of beer, and that he was closelv associated with, if he were not he actual operator of, many profl able rackets. He admitted that ho had never filed a tax report.