Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-12-04
Warning Tax Jury
To Seek 10 Break
Deadlock Today
36-Hour DeIiberution
FuiIs to Result in
Freud Verdict

by CARTER BROOKE JONES.

IA Vic VR4AAAB A4CUAIlS INK iI0uu
case. and the IL men and l woman
composing the District Court jury
were sent to q hotel for the second
night since they took the case at
noon Friday.
While the long scrutiny OF the
evidence without result indicated a
hopeless deadlock, Justice Boli.na
]. Laws did not question the jury
yesterday, and 1t was expected that
he would leave the IL to weigh their
problem until tomorrow, at least,
before bringing them into court for
report.
They will be brought back to their
jury room to spend Sunday vres-
ting anew with the conflicts that
evidently have beset them. If a
verdict is reached today, 1t is ex-
pected that Justice Laws will sum-
mon the defendants and attorneys
and receive 1t. The case was given
to the jury at 1883 am. Friday.
Judge ut Hogan Dinner.
Justice Laws remained within
telephone call al yesterday, and
last night went to the Mayflower
Hotel to act IS POSTMASTER at the
annual dinner of the District Bar
Association. The dinner was III
honor Of Frank j. Hogan. Washing
ton lawyer, whofs the current presi-
dent of the American Bar Associa-
ton.
Justice Laws, the most recent ap-
pointee to the District Supreme
Court, also was honored with =
testimonial. Those attending the
dinner included United States At
torney David A. Pine. who headed
the prosecution in the Warning
trial, and two Of the defense coun-
sci, Leo A. Rover, . former United
States attorney, representing Cor
don L. r. Sadur, the Warnings tax
adviser, and Harry T. Whelan. at
torney for the three Warning
brothers.
The presiding justice had ar
ranged to receive the verdict at
the close of the dinner, in case the
jury agreed, with the attorney ready
to hurry back to court in their
evening clothes in case they were
needed. but no word came from
the closely guarded jury room back
to Justice Laws temporary court
room on the third floor Of the new
Police Court Building. Shortly be-
fore II o'clock the jurors were
taken back to their hotel for an
other nights sleep. There was no
indication Of how they stood.
Defendants Return Home.
The defendants, all under bond,
were allowed to return to their
homes during the evening, SUBJ
ject to telephone call. They and
their attorneys will be within reach
today in case the prolonged de-
liberation should bring a verdict,
There. was the possibility that q
compromise verdict would end the
13-day trial. Under the courts in
structions. any two of the defend
ants could be convicted of the al
legged conspiracy to defraud the
Government, with the other two
acquitted. Justice Laws pointed out,
however, that it took at least two
persons to plot a conspiracy, and a
single defendant could not be found
guilty.
The Government charged that
Sadur. whom the three brothers re-
tanned to audit their books and
prepare their tax returns, and En-
mitt Warning. who ran the numbers
business. conSpired to withhold por-
tions of the income tax. and that
Leo and Charles rags Warning
as equal partners in the concern
were implicated In the alleged con-
spiracy.
1t was possible. under the court S
charge. for the jury to acquit Sadur
and convict the three brothers, or
convict Sadur and Emmitt and find
his brothers not guilty. These poten-
tial split verdicts were, Of course,
aside from the jury's privilege OF
convicting or acquitting all four OF
the defendants.
look IN S1,JoV,VVO.
Sadur's alleged connection with
the case was wrapped up largely
in the charge that he concealed
$4,000 in police protection money
which Emmitt, according to Federal
agents, said he paid in 1885. This
was the year the three brothers re-
turned for taxation 81 ,86884 apiece
when their books showed they took
in about 81. $4,000 from the num-
bers business.
Sadur, who testified at length,
commended he wrote Pro beside
$4,000 on the tax work sheet he
prepared and directed the attention
Of revenue officials to this, claiming
it as a deduction. The Government
said bride money was not deductible
and that Sadur admitted as much.
The Warnings were charged with
depriving the Government of some
$4,000 in taxes over q period of
three years by concealing their true
income from the numbers business.
The Government, maintaining that
the books which the defense brought
into court did not reflect the income
accurately, set forth expenditures
in excess Of reported income as EVIL
dence of the alleged tax fraud.
The defense commended that EN-
mitt borrowed money with which to
start his numbers business and the
expenditures did not prove his in
come. Voluminous exhibits, includ-
ing books and records and receipts
OF purchases, were submitted in the
course of the trial.