LOTTERY RACKET

Wanganui Chronicle, Volume 83, Issue 48, 27 February 1939, Page 7

LOTTERY RACKET

JURY FINDS TAMMANY LEADER GUILTY TRIUMPH FOR PROSECUTOR CONSPIRACY WITH GANGSTERS EXPOSED Received Feb. 26, 8 p.m. NEW YORK, Feb. 25. A jury, after seven hours’ deliberation, convicted the former Tammany leader, James J. Hines, on all thirteen counts of an indictment which charged him with conspiring with gangsters to create and operate a "policy racket,” estimated at 20,000,000 dollars annually. Hines faces a maximum of 27 years' imprisonment. It was a spectacuiai victory for the New York County District Prosecutor, Mr. T. E. Dewey. Most observers were expecting an acquittal, and it is now considered that Dewey will be almost assured of a Republican nomination for President in 1940. Hines heard the verdict without the slightest sign of emotion. His attorney announced that he would appeal immediately. "The verdict is a re-assertion of

democracy’s ability to clean its own house and cast out those who betray it,” said the District Attorney (Mr. Dewey) in a statement after the verdict had been given.

Sentence will be announced oi March 3.

The first trial of Hines, heard before Mr. Justice Pecora, broke down last September after the closing of the State’s case. Evidence for the defence was being heard, and a lawyer, Mr. Lyon Boston, former assistant to the ex-District Attorney, Mr. William C. Dodge, testified that Mr. Dodge had deputed him to investigate Hines’ long-rumoured connection with the numbers racket, but that he had found no evidence against Hines. Mr. Dewey started corss-examlning. Suddenly he asked: "Don’t you remember any testimony about Hines and the poultry racket?” At this counsel for the defence, Mr. Lloyd Stryker, jumped up. “Wait:'' he said. “I ask for a mistrial.” Mr. Stryker argued that the prosecutor’s remark had nothing to do with the trial at hand, and was deliberately prejudicial to his client. Mr, Dewey insisted that the question was proper and justified. Mr. Justice Decora adjourned the Court for the week-end to decide.

Giving his decision two days later, Mr. Justice Pecora said that because Hines was charged only with conspiracy to "contrive a lottery,” the question about the poultry racket was improper and prejudicial, and the request for a mistrial would be granted. Weinberg had given evidence at this trial that Hines received regular 1000-dollar stipends, and that occasionally Arthur ("Dulch Schultz”) Flegenheimer, a notorious beer-runner who was later killed by gunmen, gave him an extra 1000 dollars a week in order to reduce the number of arrests. The lottery racket netted the leaders 45,000 dollars a day. Weinberg also alleged that another notorious gangster, Dixie Davis, gladly supplied additional thousands with which to "keep Hines sweet.” Weinberg declared he overheard a conversation between Hines and Judge Capshaw, in which the latter assured Hines that he had never failed to "take care’ of arrested policy racketeers, and when an important case arose, Judge Capshaw dismissed the defendants, Judge Capshaw subsequently denied ever being influenced. George Weinberg, who was expected to be the star witness at this second trial, shot himself dead in the bathroom at his home, using a pistol belonging to a detective who hau been assigned by Mr. Dewey to watch Weinberg to prevent just such an occurrence. Weinberg found the gun in a pocket of the detective's overcoat, which was hanging in tjie bedroom closet. Mr. Dewey suspended the detective for negligence. He said he would use a transcript.of Weinberg s testimony at the previous trial but he thought it would not be nearly as effective.