Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-21
DEWEY STRIVING
TOBOLSTER CASE
Big Business Methods Are
Used by Both Sides in
Trial of Hines.
Ry tho Associated Press.


Ry the Associated Press.
NEW YORK, Aug. 20-Big busi-
ness methods OF criminals and big
business methods Of fighting them
were in struggle for supremacy to-
night in the conspiracy trial Of James
J. (Jimmy) Hines Of Tammany Hall.
The embattled forces were outlined
clearly in the FIRST week of testimony
accusing Hines o: being political
'fixer" of police and magistrates
courts.
On one hand was the intricate and
powerful numbers" combine organized
by the late Dutch Schultz, the gang
ster.
On the other was the businesslike
crime fighting machine developed by
District Attorney Thomas E. Dewey Of
Manhattan.
The efficiency of the Dewey Or
ganization was evidenced even as the
trial recessed for the week end. 1t
reached across the country to Los
Angeles to find possible witness in
San Quentin Prison. Max Silverman,
a one-time bondsman, who, the po-
lice say, knows all about Schultz's
methods of obtaining political pro
lection" for his underworld operations.
Located by Finger prints.
No comment came from the Dewey
ONCE on reports Silverman would be
brought here to testify; but it was
freely rumored the prosecution hoped
he could bolster evidence already in
the record purporting to show that
Hines received a $500 weekly retainer
to ''fix" arrests OF Schultz henchmen.
Silverman was located by q routine
check of firgerprints within . fort
night Of his arrest.
Bookkeepers, well versed in their
craft, were essential to the unraveling
Of the big business methods Of Schultz
& Co., For many account books are
involved in the evidence against Hines
AS District Attorney Dewey and the
first of his S. witnesses pictured it to
the jury this week, the racket began
with penny bets. Each bettor staked
his mite on hope that he could guess
q combination OF numbers that would
turn up in the New York Clearing
House totals, in the total sales on the
stock exchange, or in the pari-mutuel
betting boards of race tracks. The
odds were l in 1000 and the take"
ran into the millions.
Banker Pays on Winners.
The bettors placed their bets with
collectors cigar store or
small shop owners, or rowing free
agents-who took out 10 per cent. The
collectors" pooled their income with
y controller" who took out per cent.
The controllers" forked over to =
banker" who paid OF the winners
and kept the profits.
There were a number Of bankers"
IN the business when Schultz first ap-
peared and decided to consolidate the
whole thing as part Of his illicit en-
pire. Three Of them, Joseph "Spasm"
1son, Wilfrid Brunder and Alexander
Pompez, all colored, have testified to
having been bought out" by the |
gangster at gunpoint. Each was prom
ised one-third of the profits, but never |
got 1t. They had to be content with |
salaries ranging from 500 to $3.50 . |
week.
Schultz was collecting millions but,
these bankers testified, too much Of 1t
was going out IN unnecessary expense
for bail and fines for employees" ar
rested in raids.
To put stop to this. Lson told the
jury in Justice Ferdinand Pecora's
court, Schultz ordered contributions
to the political club of Jimmy"
Hines, the Tammany chieftain. In
the period in 1892 and 1893 when
the prosecution charges Hines was
employed as Schultz's "fixer," Ison
said arrests dropped so per cent.
Pompez corroborated the "contribu-
tions" and Mr.. Dewey backed this
piece OF testimony with a statement
from George Weinberg. another wit
ness, that Weinberg paid of Hines in
cash each week at Schultz's personal
direction for protection.
Testimony Repudiated.
And. Weinberg added, Hines told
him he Hines would be able to
take care Of" the police and magis-
trates.
Testimony at q hearing before one
magistrate-now dead-who dismissed
numbers" cases during the period |
Hines Is alleged to have been the
Schultz "fixer" was then read into
the record.
An tntimation that the organiza-
ton he is attacking is still powerful,
although he has rounded up many
Of its employees, came from the youth
full district attorney at one point in
the development of this weeks testi-
mony. He expressed it when one of
his witnesses, Julius (Red) Williams.
colored captain in Hines political
organization, repudiated testimony
Williams had given against Hines be-
fore the grand jury. 1t was in the
form of a question:
Who got to you since you talked
In my office?"
However, the trial will end. Hines
contends he is innocent and his coun-
sci have indicated they will challenge |
the credibility Of witnesses like Vein
berg.
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