NEW YORK SENSATION

Wairarapa Times-Age, 27 May 1938, Page 7

NEW YORK SENSATION

ARREST OF TAMMANY HALL LEADER LOTTERY AND INTIMIDATION CHARGES. ALLEGED ASSOCIATION WITH GANGSTERS. By Telegraph.—Press Association, Copyright. NEW YORK, May 26. That the relentless campaign of Thomas E. Dewey, New York’s Special Prosecutor of the Racket and Vice Investigation, will continue, no matter how influential are those whom he accuses. was indicated by the arrest of James Hines, Tammany Hall's most powerful individual district leader, on lottery charges. Hines is charged with attempting to "influence and intimadte judicial officers and others charged with the duty of enforcing and administering the laws of New York.” Hines's arrest has caused a sensation. It was made possible through the confession of three members of the “Dutch” Schultz gang indicating that Hines provided protection against arrest and prosecution of this most notorious racketeer whose gains were estimated to total one hundred million dollars from the Numbers Lottery, in which even school children's pennies were raked in. Hines was released on 20,000 dollars bail.' Dewey, who engaged in a bitter word battle with Hines’s attorney, in which the latter came off second best, intimated that the grand jury indictment would show that Hines consorted and shared profits with some of the most vicious gangster figures of recent years including Bedises, Schultz, and the notorious Dixie Davis, and that he actively intimidated judges and other law enforcement officers who attempted to bring these men to justice. The arrest of Hines marks the first arraignment on serious charges of a Tammany leader for many years. Hines was also charged with receiving 500 to 5000 dollars weekly as a “rake off" from the Numbers racket. “Dutch” Schultz, whose real name was Arthur Flegenheimer, was shot by rival gangsters while sitting with three friends in a tavern at Newark, New Jersey, on October 23, 1935. He was head of a powerful New York gang, and it was to put a stop to activities such as this that Dewey, in 1935, was (appointed Special Prosecutor. Tammany Hall is the headquarters of the Democratic Party’s “machine” in New York city. Until recent years it held undisputed sway over New York city politics.