The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-20

Continued From Page One)
curious damned the second floor
Federal Building room.
The firm headed by the convicted
men went into bankruptcy several
months ago and Immediately after
Federal investigation Of their OPP
erations began.
Witnesses, ranging from laborers
TO millionalres, testified against
them.
Defense Of the duo was based on
the fact that there was no intent
in any defrauding and that they
attempted TO present the best re-
suits to customers. They claimed
they had put up their own funds in
an effort to save the firm.
Pending further action and SEN
fencing, both men are at liberty
under bonds of $4,000 each.
Pfaff lives at 29O1 N. Pennsyl-
vania-st and Hughel at 5348 dinner
av
With eight days of testimony.
pleas, arguments and instructions Of
Judge Baltzell to consider, the jury
Of nine farmers, two real estate and
insurance men and one lumber deal
er received the case at 2:15 yeSter-
day, adjourned for lunch and began
deliberations at BIS.
Late yesterday Judge Baltzell held
a conference with attorneys, and at
the jury was called to the court
room.
The jurors revealed that failure to
reach a verdict was due to inability
to concur on questions Of fact.
Then l am unable TO assist you
further" said Judge Baltzell. He
instructed them to resume delibera-
tions, leave the verdict in a sealed
envelope with their foreman and re-
turn to court at $3.50 today.
Defendants Seem Composed
Throughout the trial Mr.. Pfaff
and Mr.. Hughel seemed perfectly
composed.
In his instructions, Judge Baltzell
told the jurors to put from their
mind any remarks, statements or
questions of the court in considering
the facts.
you must disregard anything I
have said IN the course of this trial
or any opinion you may believe me
to have he said.
There are two things you must
decide:
Did the defendants enter into q
scheme or artifice to defraud and if
SO did they use the mails in further
anCe of this scheme?
You have only one duty" he con-
Cluded, and that is to decide the
guilt or innocence of these men. Or
the court rests the responsibility Of
the sentence, if any"
Closing arguments by both sides
began at $50 and continued until
Val Nolan, United States district
attorney, made his last plea for a
finding of guilty.
This case reeks of fraud of the
worst kind said Mr. Nolan. These
men we're able to commit these Of
lenses because they had a good
name and were trusted by their
customers. That is why crimes of
this sort are more shocking than
any other
Asks Guilty Verdict
Their chief defense so far seems
to be that they did not steal all the
money that passed through their
hands" Mr. Nolan continued. You
must find them guilty to protect
people from others of their sort
Mr.. Nolan paid tribute to former
Senator James E. watson, defense
attorney for Mr.. Hughel,
1t has been a refreshing expert
enCe to be associated with the Sen
ator in this trial. I consider him
the outstanding advocate on the
American scene in the last so years.
Shows Utter Desperation of Defense
But his presence here means
something else. 1t shows the utter
desperation Of these defendants, :"
Mr.. Watson and Clair McTur-
nan emphasized in their defense Of
MIR, Hughel the depressed condition
of the security martS that led to the
collapse of the firm. They blamed
the losses to customers to conditions
outside the control of the defend
ants.
Furthermore Numbered Mr.
watson, IN stake my reputation
that this fellow Hughel did a fine,
honest, straightforward job in
managing Mrs Crosley's securities. F."
Mrs. Georgia crosby is the Indi-
annapolis widow who is alleged to
have lost a fortune through her
dealings with Pfaff g. Hughel, Inc.
Charges Hurled
Earlier in the day Howard Caugh-
ran, assistant district attorney, had
charged that Mr.. Hughel had OBJ
tanned more power than an honest
man would want or a dishonest man
should have in procuring power Of
attorney, proxies and key to her
lock box from Mrs. CrOsley.
Fred f. Hines, Mr. Pfaff'S attor-
ney, maintaines his client was con-
nected with tn firm in the last two
years only as a salesman and had
no knowledge Of any fraud, if any
fraud existed.
Pfaff & Hughel. Inc, filed volun-
tary bankruptcy petition in Federal
Court April s, 1885. Investigation
led to a Federal grand jury indict-
ment on six counts of a mail fraud
scheme on Oct. /. Besides Mr.. Pfaff
and Mr.. Hughel Robert D Robin
son, former treasurer of the firm
was named by the jury.
Mr.. Robinson was freed last week
at the conclusion of the govern
ment'S case when Judge Baltzsll
sustained a motion for a directed
verdict Of not guilty.
Taansss 51H \<th