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BAR NAMES 56
ATTORNEYS IN
1930
CHICAGO
CANAL SCANDAL
TUESDAY,
Files Its Charges with
U. S. TO ACCUSE
1930 24
Suprame Court.
CHICAGO ILL TRIBUNE
FRIDAY, MAY 23, 1930.
OLIVER OF TAX
(Pietures on back page.)
The Chicago Bar association startled
Chicago legal circles yesterday with a
petition, filed before the state Supreme
FIXING INCOME
U. S. GRAND JURY
court at Springfield, cha rging 56 at-
torneys with " unprofessional and dis-
honorable " conduct in conhection with
I
INDICTS NICHOLS
the sanitary district pay roll scandal.
The association asked permission to
1
file information against the lawyers.
Defendant Asks Judge to
Disbarment was not asked specifically,
AS TAX EVADER
but the high court was requested to
deal out such punishment as it should
Try Case Without Jury.
deem fit to uphold the standards of
the legal profession and maintain its
0
honor and dignity.'
Counsel for Gene G. Oliver, mem
Lawyers Attack Petition.
ber of the board of assessors, under
Income of $94,000 Over
The attorneys named will fight the
indictment for evasion of income
petition, it was predicted. Maclay
taxes, requested Federal Judge Wood
Hoyne, former state's attorney and
ward yesterday to try the case with
Salary Charged.
aead of the sanitary district in 1927
out a jury. During the hearing on
and 1928, whose name headed the list,
the motion, it was brought out that
issued a statement in which he ac-
the government would introduce evi-
cused the association of seeking to
William E. Nichols, alleged tax
dence that tax fixing was a source
place itself above the law. Other at-
fixer, was indicted by the federal
of Oliver's income.
torneys in the list, which included
Although there were intimations
grand jury yesterday on charges of
the names of some of the most promi-
at the time of the indictment of Wil-
evading $4,938.39 in income taxes for
nent lawyers in the city, attacked
liam E. Nichols, alleged tax fixer, said
vhat they termed the tyrannical
1927 and 1928. Nichols'. name has
to have been associated with Oliver,
ction of the association.
figured in the state's attorney's in-
that the government would seek to
Hoyne and Hector Brouillet, head
prove tax manipulations on Oliver's
vestigation into charges of bribery in
the district law department in 1925
part, yesterday's disclosures were the
Building Commissioner Christian P.
id 1926, were accused of acquiescing
first of a definite nature.
and he has been a
the placing of an excessive number
frequenter of the office of Gene G
the lawyers on the district pay roll
Sees " Prejudicial " Defense.
Oliver, a member of the board of as-
d in paying them salaries in excess
State Senator James J. Barbour,
sessors, according to federal inyesti
their services to the sanitary dis-
Oliver's attorney, informed the court
gators.
ct. Other lawyers were charged
that a trial without a jury was desired
Nichols, who is a salesman for the
h being on the pay roll without giv-
because of the prejudicial nature of
Wisconsin Lime and Cement company,
adequate legal services for their
the proposed defense, The request was
was indicted on two counts, the first
apensation.
made on the basis of a recent decision
charging that he had a total income
Named in Bar List.
of the United States Supreme court
of $50,624.29 in 1927 and the second
mong the better known lawyers
that a jury may be waived by a de-
that he received $55,962.28 in 1928. He
ned in the list were James C.
fendant in a felony case "within the
is alleged to have received $44,728 in
rien, known widely as Ropes
discretion of the court.' Judge Wood-
1927 above his salary and $49,459,28 in
rien for his success in winning
ward promised a ruling this morning.
other income during 1928. The true
aging verdicts in murder cases
'Your honor," said Mr. Barbour,
bill sets forth that he filed returns
(
ile he was an assistant state's at-
"this defendant is a member of the
and paid taxes only on his salary and
mey; William Scott Stewart, also a
board of assessors, and receives a sal-
interest from bank deposits, less the
mer assistant state's attorney and
ary of $9,000 a year. As committee
regular deductions.
ell known criminal lawyer; Stephen
man from his township, he handled
Malato, John F. Higgins, Sidney
considerable sums contributed for cam-
Income Believed Higher."
paign expenses. In addition to these
Nichols' income for the two years
yon, A1 F. Gorman, John R. McCabe
nd Eugene L. McGarry.
sources, he was given to gambling
mentioned in the indictment is believed
on the races.
to have been much more than that
John C. Garriott Jr is charged with
getting his brother-in-law, Hugh Miller,
Fears Race Bet Prejudice.
specified, according to Assistant United
States Attorney Dwight H. Green, but
o
a place on the law department pay
"The fact that a public official
he said amount could
to
roll and with receiving $150 without
played the races is likely to preju-
be shown to be income.
giving any services.
n
dice the minds of the jurors, par-
One of the witnesses before the
Pay Roll Charges Againt 53
ticularly at this time, when the mat-
grand jury in the Nichols investiga-
In addition to Hoyne, Brouillet, and
ter of assessing property is of such
tion was Attorney Morris Weinberg,
ci
Garriott, accused of acquiescing in the
public concern. We feel that this case
and he is alleged to have served a
m
payments, 53 other lawyers are alleged
should be tried by one person, one
number of clients whose sole demand
m
to have been on the pay roll without
who is learned in the law and who
was for a reduction in their taxes.
fa
returning adequate services. These 53
will not be prejudiced.'
Judge Woodward asked whether the
Weinberg, according to the internal
and the amounts they are alleged to
revenue investigators, dealt with Nich-
have received follow:
question of knowledge and intent
ols, who in turn is alleged to have
st
would arise, and whether there would
Barry J. Berman
$ 6,666.56
communicated with the proper officials
John M. Beverly
be conflicting testimony He was in-
4,400.00
formed by counsel for both sides that
relative to having assessments low-
Frank J. Brewbaker
4,200.00
ered.
Davis 8. c. Esrow
5,500.00
this would be a major question.
Assessor Oliver is under indictment
Jhha J. Dillon
5,799.62
am reluctant to assume the re-
for evasion of income taxes and his
Arthur Donoghue
3,124.95
sponsibility of a jury," said the court.
Roy Egan
3,600.00
" When the evidence is of a conflict-
case is set for trial on June 18.
Denjel V. Gallery
3,541,00
Samuel J. Graff
ing nature and the question of knowl-
Bribe Charges Made.
1,250.04
John S. Hall
2.700,00
edge and intent must be decided upon,
Although Nichols has figured in the
Jelun F. Higgins
23,499.86
it is proper for a jury to try the
state's attorney's investigation into
Eugene M. Hines
8,958.18
case."
the affairs of Commissioner Paschen's
A. Paul Holleb
7,933,07
We are not asking leniency, your
office, the federal authorities did not
John R. Horan
2,788,78
honor, said Senator Barbour.
concern themselves with this phase.
of
Meyer D. Kauffman
8,729.7
Charges that bribes were solicited and
re
Assistant United States Attorney
John B. King
11,000,00
Cassius Poust then stated that the
paid in Paschen's office were made
in
Philip A. Lozowick
8,333,2
by Jules K. Masse, a draftsman, in
da
Edward Phillip Luczak
2,003.43
government would show evidence of
Carl H. Lindqnist
5,724,91
a civil suit, and a grand jury investiga
10
income other than that announced
Stephen A. Malato
6,875.00
by the defense.
tion foliowed
ve
G. Edwin Mitchell
17,916.66
Tax Fixing Evidence.
The federal investigators expressed
St
William 8. Newburger
4,500.00
the opinion that virtually all of the
va
James C. O'Brien
3,500.00
There will be evidence of income
income Nichols is alleged to have made
Adam E. Patterson
3,600.00
from tax fixing," he said. This was
above his salary was as payment in
Joseph Paufissen
4,650.00
brought out, Mr. Poust explained, in
Lea v. Boeder
connection with tax fixing.
4,250.00
order that the court might understand
Ivor L. Smith
5.800,00
Nichols was a candidate for state
sch
Philip Sonnenshein
the expected conflicting testimony.
4,610.80
senator in 1922.
mo
Augustus L. William
3,666.63
The question of tax fixing will
Charles F. Brown
7,708.49
not be an issue. The only thing to
Jacob M. Laventhal
2,874.93
consider is income,' said Senator
Nathan A. Lawrence
8,415,52
Barbour. He then stated that Oliver's
Edward H. Lucbeck
10.064,52
Sidney Lyon
alleged income on which taxes were
9,767.76
Arthur F. Manning
6,240.00
not paid was simply a matter of
Harry Mantell
5,908.46
computation,' and that Oliver lost as
James J. McDermott
6,537.65
much as he won on the races.
Bobert H. Eberle
2,083.30
Oliver's trial is set for Thursday
AI F. Gorman
8,330.60
Four indictments charge evasion of
Thomas P. Grant
4,583.26
Henry K. Jacobs
some $70,000 in taxes, interest, and
3,166.55
Kleofas S. Jurgelonis
penalties on income estimated at
3,435.38
Joweph A. Kolb
2,000.00
$272,000 for 1926, 1927, and 1928.
Medard A. Kunz
8,000.00
Johe M. Lowery
4,500.00
Benard J. Mahonoy
10,253.43
George II. Masom
9,687.50
John B. McCabe
7,500.00
Frogene L. McGary
3,800.00
Mark J. MeNamara
5,208.25
Abraham L Misener
2,083.30
Vietor Ohrenstein
2,889.24
William Scott
Stewart
3,750.00
Formal Charge of Bar.
The formal charge against the law-
yers states that they are guilty of
unprofessional and dishonorable
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"ocrText": "Trilrme left\nBAR NAMES 56\nATTORNEYS IN\n1930\nCHICAGO\nCANAL SCANDAL\nTUESDAY,\nFiles Its Charges with\nU. S. TO ACCUSE\n1930 24\nSuprame Court.\nCHICAGO ILL TRIBUNE\nFRIDAY, MAY 23, 1930.\nOLIVER OF TAX\n(Pietures on back page.)\nThe Chicago Bar association startled\nChicago legal circles yesterday with a\npetition, filed before the state Supreme\nFIXING INCOME\nU. S. GRAND JURY\ncourt at Springfield, cha rging 56 at-\ntorneys with \" unprofessional and dis-\nhonorable \" conduct in conhection with\nI\nINDICTS NICHOLS\nthe sanitary district pay roll scandal.\nThe association asked permission to\n1\nfile information against the lawyers.\nDefendant Asks Judge to\nDisbarment was not asked specifically,\nAS TAX EVADER\nbut the high court was requested to\ndeal out such punishment as it should\nTry Case Without Jury.\ndeem fit to uphold the standards of\nthe legal profession and maintain its\n0\nhonor and dignity.'\nCounsel for Gene G. Oliver, mem\nLawyers Attack Petition.\nber of the board of assessors, under\nIncome of $94,000 Over\nThe attorneys named will fight the\nindictment for evasion of income\npetition, it was predicted. Maclay\ntaxes, requested Federal Judge Wood\nHoyne, former state's attorney and\nward yesterday to try the case with\nSalary Charged.\naead of the sanitary district in 1927\nout a jury. During the hearing on\nand 1928, whose name headed the list,\nthe motion, it was brought out that\nissued a statement in which he ac-\nthe government would introduce evi-\ncused the association of seeking to\nWilliam E. Nichols, alleged tax\ndence that tax fixing was a source\nplace itself above the law. Other at-\nfixer, was indicted by the federal\nof Oliver's income.\ntorneys in the list, which included\nAlthough there were intimations\ngrand jury yesterday on charges of\nthe names of some of the most promi-\nat the time of the indictment of Wil-\nevading $4,938.39 in income taxes for\nnent lawyers in the city, attacked\nliam E. Nichols, alleged tax fixer, said\nvhat they termed the tyrannical\n1927 and 1928. Nichols'. name has\nto have been associated with Oliver,\nction of the association.\nfigured in the state's attorney's in-\nthat the government would seek to\nHoyne and Hector Brouillet, head\nprove tax manipulations on Oliver's\nvestigation into charges of bribery in\nthe district law department in 1925\npart, yesterday's disclosures were the\nBuilding Commissioner Christian P.\nid 1926, were accused of acquiescing\nfirst of a definite nature.\nand he has been a\nthe placing of an excessive number\nfrequenter of the office of Gene G\nthe lawyers on the district pay roll\nSees \" Prejudicial \" Defense.\nOliver, a member of the board of as-\nd in paying them salaries in excess\nState Senator James J. Barbour,\nsessors, according to federal inyesti\ntheir services to the sanitary dis-\nOliver's attorney, informed the court\ngators.\nct. Other lawyers were charged\nthat a trial without a jury was desired\nNichols, who is a salesman for the\nh being on the pay roll without giv-\nbecause of the prejudicial nature of\nWisconsin Lime and Cement company,\nadequate legal services for their\nthe proposed defense, The request was\nwas indicted on two counts, the first\napensation.\nmade on the basis of a recent decision\ncharging that he had a total income\nNamed in Bar List.\nof the United States Supreme court\nof $50,624.29 in 1927 and the second\nmong the better known lawyers\nthat a jury may be waived by a de-\nthat he received $55,962.28 in 1928. He\nned in the list were James C.\nfendant in a felony case \"within the\nis alleged to have received $44,728 in\nrien, known widely as Ropes\ndiscretion of the court.' Judge Wood-\n1927 above his salary and $49,459,28 in\nrien for his success in winning\nward promised a ruling this morning.\nother income during 1928. The true\naging verdicts in murder cases\n'Your honor,\" said Mr. Barbour,\nbill sets forth that he filed returns\n(\nile he was an assistant state's at-\n\"this defendant is a member of the\nand paid taxes only on his salary and\nmey; William Scott Stewart, also a\nboard of assessors, and receives a sal-\ninterest from bank deposits, less the\nmer assistant state's attorney and\nary of $9,000 a year. As committee\nregular deductions.\nell known criminal lawyer; Stephen\nman from his township, he handled\nMalato, John F. Higgins, Sidney\nconsiderable sums contributed for cam-\nIncome Believed Higher.\"\npaign expenses. In addition to these\nNichols' income for the two years\nyon, A1 F. Gorman, John R. McCabe\nnd Eugene L. McGarry.\nsources, he was given to gambling\nmentioned in the indictment is believed\non the races.\nto have been much more than that\nJohn C. Garriott Jr is charged with\ngetting his brother-in-law, Hugh Miller,\nFears Race Bet Prejudice.\nspecified, according to Assistant United\nStates Attorney Dwight H. Green, but\no\na place on the law department pay\n\"The fact that a public official\nhe said amount could\nto\nroll and with receiving $150 without\nplayed the races is likely to preju-\nbe shown to be income.\ngiving any services.\nn\ndice the minds of the jurors, par-\nOne of the witnesses before the\nPay Roll Charges Againt 53\nticularly at this time, when the mat-\ngrand jury in the Nichols investiga-\nIn addition to Hoyne, Brouillet, and\nter of assessing property is of such\ntion was Attorney Morris Weinberg,\nci\nGarriott, accused of acquiescing in the\npublic concern. We feel that this case\nand he is alleged to have served a\nm\npayments, 53 other lawyers are alleged\nshould be tried by one person, one\nnumber of clients whose sole demand\nm\nto have been on the pay roll without\nwho is learned in the law and who\nwas for a reduction in their taxes.\nfa\nreturning adequate services. These 53\nwill not be prejudiced.'\nJudge Woodward asked whether the\nWeinberg, according to the internal\nand the amounts they are alleged to\nrevenue investigators, dealt with Nich-\nhave received follow:\nquestion of knowledge and intent\nols, who in turn is alleged to have\nst\nwould arise, and whether there would\nBarry J. Berman\n$ 6,666.56\ncommunicated with the proper officials\nJohn M. Beverly\nbe conflicting testimony He was in-\n4,400.00\nformed by counsel for both sides that\nrelative to having assessments low-\nFrank J. Brewbaker\n4,200.00\nered.\nDavis 8. c. Esrow\n5,500.00\nthis would be a major question.\nAssessor Oliver is under indictment\nJhha J. Dillon\n5,799.62\nam reluctant to assume the re-\nfor evasion of income taxes and his\nArthur Donoghue\n3,124.95\nsponsibility of a jury,\" said the court.\nRoy Egan\n3,600.00\n\" When the evidence is of a conflict-\ncase is set for trial on June 18.\nDenjel V. Gallery\n3,541,00\nSamuel J. Graff\ning nature and the question of knowl-\nBribe Charges Made.\n1,250.04\nJohn S. Hall\n2.700,00\nedge and intent must be decided upon,\nAlthough Nichols has figured in the\nJelun F. Higgins\n23,499.86\nit is proper for a jury to try the\nstate's attorney's investigation into\nEugene M. Hines\n8,958.18\ncase.\"\nthe affairs of Commissioner Paschen's\nA. Paul Holleb\n7,933,07\nWe are not asking leniency, your\noffice, the federal authorities did not\nJohn R. Horan\n2,788,78\nhonor, said Senator Barbour.\nconcern themselves with this phase.\nof\nMeyer D. Kauffman\n8,729.7\nCharges that bribes were solicited and\nre\nAssistant United States Attorney\nJohn B. King\n11,000,00\nCassius Poust then stated that the\npaid in Paschen's office were made\nin\nPhilip A. Lozowick\n8,333,2\nby Jules K. Masse, a draftsman, in\nda\nEdward Phillip Luczak\n2,003.43\ngovernment would show evidence of\nCarl H. Lindqnist\n5,724,91\na civil suit, and a grand jury investiga\n10\nincome other than that announced\nStephen A. Malato\n6,875.00\nby the defense.\ntion foliowed\nve\nG. Edwin Mitchell\n17,916.66\nTax Fixing Evidence.\nThe federal investigators expressed\nSt\nWilliam 8. Newburger\n4,500.00\nthe opinion that virtually all of the\nva\nJames C. O'Brien\n3,500.00\nThere will be evidence of income\nincome Nichols is alleged to have made\nAdam E. Patterson\n3,600.00\nfrom tax fixing,\" he said. This was\nabove his salary was as payment in\nJoseph Paufissen\n4,650.00\nbrought out, Mr. Poust explained, in\nLea v. Boeder\nconnection with tax fixing.\n4,250.00\norder that the court might understand\nIvor L. Smith\n5.800,00\nNichols was a candidate for state\nsch\nPhilip Sonnenshein\nthe expected conflicting testimony.\n4,610.80\nsenator in 1922.\nmo\nAugustus L. William\n3,666.63\nThe question of tax fixing will\nCharles F. Brown\n7,708.49\nnot be an issue. The only thing to\nJacob M. Laventhal\n2,874.93\nconsider is income,' said Senator\nNathan A. Lawrence\n8,415,52\nBarbour. He then stated that Oliver's\nEdward H. Lucbeck\n10.064,52\nSidney Lyon\nalleged income on which taxes were\n9,767.76\nArthur F. Manning\n6,240.00\nnot paid was simply a matter of\nHarry Mantell\n5,908.46\ncomputation,' and that Oliver lost as\nJames J. McDermott\n6,537.65\nmuch as he won on the races.\nBobert H. Eberle\n2,083.30\nOliver's trial is set for Thursday\nAI F. Gorman\n8,330.60\nFour indictments charge evasion of\nThomas P. Grant\n4,583.26\nHenry K. Jacobs\nsome $70,000 in taxes, interest, and\n3,166.55\nKleofas S. Jurgelonis\npenalties on income estimated at\n3,435.38\nJoweph A. Kolb\n2,000.00\n$272,000 for 1926, 1927, and 1928.\nMedard A. Kunz\n8,000.00\nJohe M. Lowery\n4,500.00\nBenard J. Mahonoy\n10,253.43\nGeorge II. Masom\n9,687.50\nJohn B. McCabe\n7,500.00\nFrogene L. McGary\n3,800.00\nMark J. MeNamara\n5,208.25\nAbraham L Misener\n2,083.30\nVietor Ohrenstein\n2,889.24\nWilliam Scott\nStewart\n3,750.00\nFormal Charge of Bar.\nThe formal charge against the law-\nyers states that they are guilty of\nunprofessional and dishonorable"
}