The Waterbury Democrat., 1939-02-03

Among some 40 defendants in
 New Mexico's sensational WPA
 fraud trial at Albuquerque is
 Mrs. Anita Tafoya, above, sister of Senator Dennis Chavez.
 Levy about check from the city of Waterbury, issued in 1881.
 Concerning Levy's admissions be- fore the jury and his attempt to get into the present record that fact that he corrected his false statements before the grand jury, Judge Inglis said, in answer to Alcorns objec- ton, that he would have chance to straighten it out on redirect ex- animation.
 Judge Inglis also ordered stricken from the record remarks made by Alcorn concerning the fact that Levy did make corrections of his original under-o oath testimony.
 No Court Memory
 Levy admitted that he had mo court memory" but said his memory was fairly good" when questioned by McDonough concerning his false tes- timony before the grand jury.
 Are you telling the truth?" de- manded McDonough when he said that he "did not think" he had made trip to the Waterbury Trust com- pany with Kelly on one occasion.
 Many times Levy said, in reference to his grand jury testimony, 'That answer was not correct"
 That answer was false," he said in connection with his grand jury testimony that he did cash @ check in June of 1881 for $1 300. .
 Held Down to "Lie"
 "It was a lie, wasn't it," said Me- Donough.
 "Yes," was the reply.
 "You knew you were committing perjury at the time you gave that answer?"
 "Yes," was the reply. McDonough said also, in no un- certain terms of voice, That answer that you cashed it at the Water bury Trust was also 8 lie, @ false- hood and untrue"
 He also admitted that when he testified that several checks cashed were kept to himself were untrue.
 Do you know there is an in- come tax man in the courtroom" asked McDonough.
 T saw him here yesterday" was the reply.
 All Were Untrue
 Before the grand jury, Levy said he admitted receiving several checks, cashing them at the Waterbury Trust, and claimed he took all the money to New Haven to invest for other personal uses.
 All those answers made before the grand jury were untrue, with ref erence to taking the money to New Haven without splitting, Levy said today, but he added today that the corrections were made before the grand jury.
 Levy denied, when questioned by McDonough that he had gone to the City of Hartford and attempted to sell them the idea of installing utilities survey" to cut the costs, after the Waterbury contract had been complete. He also said that he does not know how Alcorn came into possession of the photostatic copy of the Waterbury contract that has been introduced as evidence.
 McDonough brought out that Levy was partner in the Brown ing corporation of Brooklyn, N. Y, whose speciality was securing for light and power users reductions in rates and refunds. He got 50 per cent "cut" of all fees, the witness said. Not more than $2,000 net was received by the Browning corpora tion from the city of Waterbury, Levy said, of which he got half or $1 ,000. Later, he had an oral con- tract with Kelly under the same terms as the original written coii- tract which was released by Brown ing on payment by the city of $4,- 300, $2,000 of which was kicked back" Levy testified earlier.
 Upholds Cellar Story
 In regard to the witness testimony that Controller Leary said, after be- ing introduced to him: Lets go downstairs where we can talk bet tier" Attorney McDonough said: Do you want to tell this court and jury that you went down cel- lar in the city hall in 8 dark room when there were comfortable leatber chairs and closed doors in the maor's office and also in the private office of the controller. That is the truth" Levy replied, adding that his grand jury state ment that he had to give half of all checks to Kelly was also true. He admitted Kelly insisted on light and power survey of the schools and power stations before he got the contract to help reduce rates; and also said the mayor had told him Kelly had done considerable work trying to accomplish the same pur- pose for which the contract was given Levy that is, get lower elec- tric and power rates.
 McDonough, aided by grand fury minutes, traced Levy from his birth to last May. the witness corroborat- ing facts that he had turned over his law practice to his brother, had been dismissed from Yale for cheat ing in ane animation, earned about 5000 a year as a lawyer but went into the motion picture theater busi- ness combining it with his electric rate reducing plans. which netted 25 theaters a saving of $50,000, includ- ing about $900 for two Waterbury theaters owned by the Warner brothers.
 Levy told the court and jury, while questioned by AcDonough, that he had testified before the grand jury to keeping large sums of money in safe at his New Ha-