Evening star., 1935-09-11
.$141,0DO SW|NDLE
Barred BY WOMAN
Witness Against Reno Gam.
bIers Tells of Lost
Wallet Ruse.
BY the Associated Press.

BY the Associated Press.
NEW YORK, September IL
White-haired Mrs. Mary e. Callahan,
motherly-looking woman, testified
In Federal Court today that she and
her husband were swindled out Of
$l41 900 at Reno, New.
A Government witness in the mail
fraud and conspiracy trial of James
C. Mckay and William J. Graham,
Reno gamblers. Mrs. Callahan OF
Rochester, N. Y, said that even after
she had been fieeced she was loath to
believe the "con" men had lnten-
tionally duped her.
Il told my husband, Let's give them
the benefit Of the doubt" she testi-
fed.
Lost Wallet Trick.
Mrs. Callahan. now q widow, said
that Jack Corbett. the "steerer." met
her and Mr.. Callahan In Los Angeles,
Calf. in the Fall of 1880. Then en-
tered the "spieler,". Mr.. Leahy, by
means of the lost wallet trick.
I'VE were eating in q restaurant"
the witness said.
My husband, Mr.. Corbett. Mr..
Leahy and me. Mr.. Jeahy apologized
to my husband for stepping on his
foot. 1t wasn't any ones foot. 1t
was wallet"
Describe what was In the wallet"
prompted J. Howard Carter, assistant
United States district attorney.
Mrs. Callahan said 1t contained a
bond for 100000 and newspaper
clipping about a man who was making
considerable money betting on horse
races.
Turf Exchange" Member.
"Mr. Leahy represented himself as
a member Of the Turf Exchange" said
the witness.
Then she told the familiar story Of
how Leahy said he was making great
profits playing the races, and how he
offered to "let them In on it,"
She and Mr.. Callahan took advan-
tage Of the offer and directly won
$500 900 "on paper" said Mrs. Gala
han. Then all Of them went to Reno,
where she was told she must show to
betting oficials substantial evidence
Of financial responsibility before col
lecting her winnings
The con" men asked the Galatians
to produce $4,000, the witness said.
adding that she asked Roy Frisch,
missing cashier of the Riverside Bank
in Reno, TO arrange for the sale of
securities TO that amount.
Receiving Cut Charged.
The Government accuses Mckay
and Graham of facilitating such
transactions at the bank. and OF re-
ceiving cut thereby from the
swindlers
I'VE asked Mr. Frisch to inquire at
our bank in Rochester about transfer
and sale of the securities" Mrs. CAL
lahan said.
He said 1t wouldn't be ethical. that
we would have to go back and get
them ourselves"
Mrs. Callahan went East and OBJ
tained them, depositing them in the
Riverside Bank. Through the bank,
she said. the securities were quickly
| converted into $l4l 900.
Corbett took the money and in
formed the Galatians he had placed
| it on the wrong horse. whereupon,
a well-planned drama was enacted for
the benefit of her and her husband,
the witness said.
Mr.. Leahy said he'd shoot Mr..
Corbett," she related. Mr.. Corbett
cried, then said he'd make it all up"
A wiZened old man, Agard Joseph
son of Spokane. Wash, testified that
he was directed to Reno by q Mr..
Evans. "steerer." and q Mr.. Male,
"spieler"
He was approached in Los Angeles,
Calf, in May, 1882. and promised
great wealth If he allowed Mr.. Male"
to use his funds in playing the stock
market. Josephson said
He was fleeced out Of $4,000, the
witness said.
Reinhold Hermel of New York testi-
field he was mulcted out Of $24, 200
by the lost wallet-race track"
artif1ce.
The defendants sat stolidly at the
counsel table. So far they have ap-
parently been only mildly interested
in the proceedings.