The Waterbury Democrat., 1936-04-13


 Operates in Lower Rank of
 Federal Courts Jurists
 Blamed for Detroit MuddIe
 Hughes Takes a Hand.
 Washington, April 13-The in- peachment trial of federal district judge by the senate calls attention to the judicial process and the way 1t sometimes operates in the lower reaches of the federal courts.
 Appointments to the district bench are political ones and the ap- pointees usually have political back grounds. Senators of the party in power have the most important voice in those appointments.
 While District Judge zIaIsted L. Ritter of Florida was trying to ex- plain to the senate why he re- ceiyed money from a lawyer to whom he had assigned a receiver ship, Chief Justice Charles Evans Hughes of the U. $. supreme court stepped into cockeyed situation in Detroit, where several other district judges play important roles. The tale:
 More than three years ago, two billion-dollar banking chains in Michigan collapsed, precipitating the state bank holiday, which pre- cipitated the national bank holi- day. The key banks of the two chains were the First National and the Guardian National Bank of Commerce.
 Thirty-four bankers, officers of the two groups were indicted in June, 1884, for alleged false reports and other banking law violations.
 Judges Won't Step Aside
 The apartment of Justice has been trying to get the cases tried ever since and its lawyers at tribute failure to proceed to the re- fusal of Michigan's three federal district judges-republicans ap- pointed by Taft, Coolidge and Hoover-to step aside and allow an outside judge without Detroit bank ing connection to be assigned to the bank cases.
 Hughes has now appointed Judge Patrick T. Stone of Wis consin, democrat, to try the bankers. Recently fourth judic- ial district was created in Michi- gan and the job was given to Arthur F. Lederle, who is expect ed to sit elsewhere while Stone comes in for that purpose.
 The government will proceed to trial with the first case May 1.
 Judge Arthur J. Futile and Judge Edward A. Moinet had been bank presidents in Michigan and they disqualified themselves. That left Judge Ernest A. O'Brien, who in- sisted that he would try the bankers cases, though the government in- sisted he was unfit to do so.
 O'Brien went on with 8 trial which resulted in acquittal of three defendants-who, however, are still under other indictments.
 Charge Judge Erred
 The government went to the cir cult court Of appeals, charging more than 30 prejudicial errors in O'Brien's charge to the jury. It also alleged that O'Brien was per- sonally involved, because his wife was in debt to one of the banks and facing suit by its receiver be- cause she had recovered collateral on certain loans without paying off certain other loans in the bank.
 The appeals court ordered O'Brien to step down and let an outside judge come in. But o. Brien fought on. Represented by John w. Davis, he appealed to the supreme court itself. The su- preme court refused to review the case, which made the appeals court ruling effective.
 But Department of Justice off, cials declare the appeals court still was unable to persuade one of the three judges to accept transfer so that a substitute might be as- signed to the trial. The stymie was broken by creation of the fourth judgeship.