The Waterbury Democrat., 1939-02-08
Witness Admits Lying
 Before Grand Jury
Mysterious Night Visit of Mrs. Levy Recalled-"Iired Holding Bag" State Witness Intimates in Testimony

'SS hsAeAAheOS hAa and the one he told in court last week--not only makes him out as Q liar, but also tends to befuddle the reader and make 1t difficult to fol- low through,
 Recognizes Agent
 Quite unexpectedly, Attorney Me- Donough, while discussing Levy's income tax difficulties, asked the witness to point out any income tax men in the court room whom he might recognize.
 After gazing about for c moment, Levy pointed to one, and called him by name. The federal man, dis pleased by the spotlight thrust sud- denly on him, ignored McDonough's request that he stand up. At Q word from Attorney William J. | Wholean, counsel for Martin J, Dunn, and United States Commis- sioner at Hartford, McDonough dropped the subject.
 Levy was advised by Alcorn to begin at the beginning and tell the truth" when the witness allegedly presented himself before the grand Jury, after experiencing the change of heart"
 On instance of Levy's lies before the grand jury is his claim that T had no dealings with Leary at all," His testimony last Wednesday was directly contradictory to that. The witness testified that until 1887 he kept his money in Q safe at his home, then he acquired Q safety deposit box in bank. Levy was al- so questioned before the grand jury concerning his acquaintanceship with e number of Waterbury law yers.
 Held Conference
 Levy told the court and jury yes. terday that prior to his appearance before the grand jury, March 20 :. |. the day of alleged revelation he conferred for more than on hour with his attorney and County De- tective Hickey ct The Elton. In di- rect contradiction to his previous testimony, he said that he hasn't talked to him since except concern- ing "generalities,"
 Levy denied he had been ct The Elton last Thursday night until Attorney McDonough reminded him that he had spoken to him in tho lobby. Levy claimed that he did not confer with any member of the Al. corn staff at that time. The state squad resides at The Elton.
 Levy also said that he had met Kelly in New Haven March 90, the day before his revelations.
 Reading from the transcript of Levy's testimony before the grand jury March %, Attorney McDonough asked him questions concerning claims he met Kelly and Leary in the cellar of city hall, where tho plan to kick back half the receipts from the utilities survey was al- legedly made.
 "Substance'
 A difference in the wording of the story told the grand jury and the story told the court last week was dwelt on by MeDonough, who finally won from Levy the admis- sion that "it was only the sub- stance of what had been said"
 Levy said he could not recall the exact words of the conversation.
 Concerning Q check for si,800 al- iegedly indorsed by Levy and turned over to Kelly in 1881, MeDonough asked Levy if he could prove that Kelly actually got the check and that Levy himself had not taken it and eashed it. "You swore in March that you took that money to New Haven," reminded McDonough.
 Levy later told Q story of reeeiv. ing $50 from Kelly, flor his trouble for coming to Waterbury to sign the check"
 He also stated that he and Brown. ing were dissatisfied with the S4,200 which they were paid in io32 for their utilities survey efforts. About s2,000 was turned over to Kelly, he said.
 No Suit
 Levy said that the sum was less than what was duo them, but it twas what we were forced to accept" He admitted to McDonough that under the contract in effect, he believed he and Browning could have in. stituted suit and collected from the city. No suit was instituted, how. ever.
 Questioned concerning his reason for undergoing c "change of heart" and changing his story before the jury, Levy said Tt occurred to mo that it was time for mo to stop holding the bag"