Evening star., 1939-08-21
Shushan, Ex-Aide
OF Long;4 Others
Indicted in Fraud
$l32,740 Held Given to
Politician in levee
Bond Refundine
BACKGROUND

BACKGROUND
Er-GoU. R. w. Leche and
Seymour Weiss Uere indicted
more than tueek ago on charges
of conspiracy to pioldte the Con-
ndlly Hot Or Act by dllouing
an oil firm, to step up its pro-
duction. The Government
charges Leche and Weiss netted
S67, 900 apiece.
BY the Associated Press.
NEW ORLEANS. Aug. 21.-
Abraham L. Shushan, powerful
Louisiana politician and former close
associate of Huey P. Long, was
indicted by the Federal grand jury
here today with four other persons
on charges of using the mails to
defraud.
The indictment concerned an
Orleans levee board bond refunding
action in which Shushan allegedly
received $132,740.
Named with the 300 pound former
president of the Levee Board, whose
name was stripped from Shushan
airport here two weeks ago, were
Robert j. Newman and Marvin T.
Harris, jr., members of the promi-
nent investment firm of Newman,
Harris & Co.; Herbert w. Wagues-
pack, member of the Levee Board
at the time of the transaction, and
Henry j. Miller, an accountant, all
of whom are alleged to have shared
in $496,000 fee paid in the re-
funding.
DR.. Smith, One Other Indicted.
Two other indictments were
handed down today, one naming
State Senator Clarence A. Lorio,
prominent Baton Rouge politician
and former aide to Huey P. Long,
and the other DR.. James Monroe
Smith, former head of Louisiana
State University. Lorio was charged
with using the mails to defraud,
Smith with income tax evasion.
Newman Harris & Co. is one of
the largest investment firms in the
South.
The indictment alleges the fraud
grew out OF an arrangement where
by the firm would receive Is per
cent on all savings effected through
refunding operations in 1886 and
1897.
The Government alleged that
Waguespack, as a member of the
board, urged and influenced other
members of the board" from which
Shushan had shortly before retired
as president to accept the plan, and
that the fee charged the board was
exorbitant and far in excess of the
value" OF services rendered, mas
much as the defendants pretended
there had been 100000 saving,
whereas actually the saving
amounted only to $4,000.
S39S,220 Profit Split Alleged.
The indictment charged Newman
and Harris paid Charles Fitere,
since deceased, $12,946 "as a bribe
for acting as spy and informer" in
obtaining confidential board infor-
nation about bidding of competitors
and that when they received ap-
proval of and executed their plan,
they split $398, ,22O.O1.
The Government charged Shushan
received one-third of this amount,
$132, ,704; Newman and Harris a
a quarter each of $99, $50, and Miller
1873 per cent, or $66,370.01. The
Government alleged Miller and
Waguespack then formed a part
nership and Miller paid Waguespack
70 per cent of his share, or $46,-
450.01, and retained 1891 for him
self.
The Government charged that it
was the duty of Waguespack as a
member of the board and chairman
of its Finance Committee to have
the bonds refunded ION the most
reasonable and favorable terms
available" and that he violated his
duty.
The other four defendants were
charged with aiding" Waguespack.
All bonds were fixed at $4,000
each except Miller, whose bond was
fixed at 5000.
The violent death yesterday of DR..
j. A. Shaw, key Government. witness
and keeper of Louisiana's oil indus
try secrets for decade, gravely COM
plicated the Federal investigation OF
tangled State affairs, but Govern
ment prosecutors promised no letup.
DR.. Shaw, director of the min
erals division Of the Louisiana Con-
servation Department and titular
"czar" Of the States oil industry,
was found fatally wounded ct his
(see OIL, Page A-6.)