Evening star., 1935-10-20
SHUSHAN DEFENSE
GIVES ITS VERSION.
Cash on Which Income Tax
Was Not Paid Held
Longs Funds.
Sy the Associated Press


NEW ORLEANS, october 19.-The
second week of Abraham Lazard Shu-
shan's trial in Federal District Court
for alleged income tax evasions ended
today with the robust defendant at
tempting to show that moneys the
Government claims he received and
failed to ccount for in his tax returns
we're gifts to the late Huey P. Long
Louisiana political machine.
Shushan charged in a 10-count IN
tiictment with willfully attempting to
defeat payment of $7l 900 taxes on a
gross unreported income OF $44o,O00
for the years 1929l933, inclusive, be-
gan unfolding his defense through the
testimony of witnesses who laid bare
the financial dealings of the Louisiana
Democratic Association, Longs State
organization
Hugh M. Wilkinson, Shushan's at
torney. informed the court and the
Jury that the defense was based on
the contention that Shushan, in ham
ding large sums termed rebates" or
graft" by the Government, was mere
ly acting as the fiscal agent for the
Long organization.
Prosecutions Case Attacked.
After opening its case yesterday the
defense lost little time in launching
Its attack on the Governments testl-
mony. The latter was devoted prin-
cipally to the contention that Shu-
shan, president of the Orleans Levee
Board, received thousands of dollars
In rebates" on lake shore develop
ment contracts awarded the Standard
Dredging Co. of New York. but did not
include them in his tax returns
BY the testimony of two witnesses
today the defense tried to show that
Shushan served as the unofficial finan-
rial agent of the Louisiana Demo-
cratic Association.
Charles j. Donner, secretary of the
State organization and leader of its
fifteenth New Orleans ward group,
testified that during the period COW
cred in the indictment five major elec-
tions we're held for each of which he
received between $500 and $4,000
campaign expenses from Shushan.
Got Other Funds.
He said he got the money directly
from the defendant in cash. declaring
the organization did not maintain an
expense account. He further teStl-
fled that he obtained other cash from
Shushan. in his capacity as secretary
of the L. D. A, for distribution in
New Orleans of campaign circulars
written by the late Senator Long.
Monte E. Hart, New Orleans elec
~
late political dictator" with his sound
trucks, testified that he carried an
envelope given him by Shushan to
New York in the Spring of 1884 to
deliver to C. R. Birch, secretary of
the Standard Dredging Co. He said
the envelope contained three levee
board bonds, and that Birch opened
the envelope in his presence and
placed the bonds with batch Of IS
others. Birch said, Hart went on, that
he tBirch) had given large sums to
EhuShan as political contributions.
Hart then testified tnat he asked
Birch about some electrical work he
wanted TO get, and that Birch asked
him if he would take bonds in pay
ment.
Bond Deal Suggested.
81 asked him." Hart said. eff he
meant would I consent to take bonds
in payment for the work. and he said
No that he'd pay me in cash, but
for me to add the amount of the bonds
to the bill. so they could get the bonds
out"
Asked to explain what was meant
by get the bonds out the witness
said:
Mr.. Birch told me that both the
bonds and other contributions of his
company were being investigated and
that he had not paid income tax on
the bonds, and that there was going
to be hell to pay for this situation"