Evening star., 1936-02-17
TAX GRAB DENIED
At LIBEL TRIAL
Sebastian S. PugIiese Re-
called in Margiotti Suit
for Reuuestioning.
BY the Associated Press.


WASHINGTON, Pa, February IT,
Sebastian s. Pugliese. law partner Of
Attorney General Charles j. Margiotti,
was called back to the stand today
for more croSs-examination on the
testimony he gave in support of Mar
giotti's criminal libel charges against
the Philadelphia Inquirer.
Pugliese followed the attorney gen.
eral on the stand to make emphatic
denial he took part in or had any
knowledge of tax fee grab"
Margiotd accuses the Inquirer of
defaming him in an article published
last September 20. saying that the at
torney general and his associates were
out to grab tax collection authority
which may net them millions in the
next four years" Pennsylvania poll
tical figures are keenly watching the
progress of the case.
Jury Under Guard.
The trial Is being resumed against
the Inquirer and two of its officials
after three day recess called because
of the death of the attorney generals
mother. The jury OF seven men and
five women have been kept under
guard since adjournment.
Pugliese told the court the only tax
case he took part in was that to col
lect personal property taxes from the
estate of the late George w. Craw-
ford, oil and gas millionaire. The
tax was payable in Venango County
and Pugliese said he understood he
was engaged because the Crawford
will had been probated in Allegheny
County (Pittsburgh).
Law Passed Last Year.
The tax collection followed passage
last year of an amended personal
property tax law, adding one-mill
State levy to an old four-mill tax
for use of counties only.
Testimony has disclosed the Craw-
ford estate claim was settled for
$180.000 with attorneys to receive q
$4,000 fee, divided equally between
Samuel Wilson of Clarion and two
law partners Of Margiotti, Pugliese
and John E. Evans, sr.
The attorney general while on the
stand denied there was any plan for
a fee grab" and testified there were
two law firms, with one of which he
had no connection. He said it was
this firm, made up of Pugliese and
Evans, that received the tax collection
contract.
Margiott is a former Republican
who deserted his party to support Gov.
George H. Earle and the Democratic
ticket in 1884. The Inquirer Is Re-
publican.
Admits Conferring.
The Attorney General said his first
knowledge of the Crawford case came
two months after his partners had be-
come interested in it. He admitted
comforting with the county commits
sioners and later going to the estate
executors requesting an inventory of
assets.
He insisted this was done in the Ca
pacity of private citizen interested
in his partners, the commissioners and
in apprehending "tax-dodging mil
nonaire."
An amended personal property tax
law, adding a 1-mill state tax to an
old act which levied 1 mills for
counties exclusively, was passed by the
Legislature and signed by the Gov
ernor last June 22 Mortgages, "for-
eign" stocks and bonds, annuities, ETC.,
were subject to the levy, which the
newspaper said had been collected ir-
regularly in smaller counties.
Right To Contract.
County commissioners have the
right to contract with agents to collect
the levy. granting power to settle
claims for less than face value.
The article named Attorney Will
son as the front man and chief
negotiator" in the alleged drive to
obtain contracts for collections. It
stated a 40 per cent contingent fee
contract was obtained in Warren
County by Wilson and Lemuel B.
Schofield, former director Of pub
lie safety in Philadelphia. which later
was repudiated by the county COM
miSsioners.
The article continued:
THE friends Of Margiotti had more
luck over in Venango County, heart
of Pennsylvania petroleum country,
where the uncollected personal prop
erty taxes are estimated in excess Of
$4,000, 900 by Joseph A. McElhaney,
chairman Of the county commission.
In Venango, Wilson. the associate.
and Sebastian Pugliese and John E.
Evans, the partners of Margiotti,
struck oil to the tune of a $50, 900
fee on their first try what they
we're interested in here was the Craw-
ford estate.
George w. Crawford, native Of
Venango County and chairman of the
board of the Columbia Gas & Electric
Corp, died in Pittsburgh early last
April, leaving an estate estimated at
from $4,000, 900 to $25 ,O0o, ,o00."
The ATTORNEY General said he had