COMMENTS TO JURY.

Manawatu Standard, Volume LV, Issue 210, 3 August 1935, Page 7

COMMENTS TO JURY.

BY AMERICAN JUDGE

FRAUD CHARGE FAILS. NEvTyORK, Aug..]. At Malone, Arthur Flegenheimcr. known to the underworld as “Dutch Schultz.” was acquitted by a jury in the Federal Court to-day of a charge of having defrauded the Government of over IOCT.OOO dollars in income tax due on vast profits from the sale ol illicit liquor during prohibition. It was his 'second trial, the first jury having reached a deadlock. The present jury deliberated for over 28 hours. The verdict came as n shock to the presiding Judge (Mr Justice Bryant), whose anger increased when the gangster grinned at the crowd, which responded with cheers and applause. “Before I discharge you,” Mr Justice Bryant scornfully addressed tire jury, “I will have to say that your verdict is such that it shakes the confidence of law-abiding people in integrity and truth. You have, rendered a blow against law enforcement and given aid and encouragement to people who would flout the law.” Evidence at the trial revealed that Flegenheimcr made a fortune from the sale of beer and that he was closely associated with, if not- the actual operator of, many other profitable rackets. He admitted that Ire had never filed a tax report.