Evening star., 1944-01-19
Government Rests
In Embezz|ement
Trial Of Steinberq
Bookkeeper's Attorney
To Ask for Dismissal
Of Charges Tomorrow

To Ask for Dismissal
Of Charges Tomorrow
The Government rested it's case
today in the District Court trial of
Albert w. Steinberg, 43. former
bookkeeper and Office manager of
Forman, Inc, wholesale liquor dealer,
charged with embezzlement of more
than $4,000 Of the firms funds.
Justice Matthew F. Mcclure ad-
journed proceedings until tornor-
row morning when Defense Attorney
Austin F. Garfield will argue a mo-
ton for dismissal of the 7l-count
indictment against Steinberg.
Assistant United States Attorney
Bernard Margolius informed the
court that the Gov ernment has
agreed to directed verdict on two
counts of the indictment.
Shortage Was Rumored.
Under cross examination. 1t.
Comdr. John r. Fitzpatrick, former
attorney of Forman. Inc, and the
Governments final witness, testified
that there were 'rumors around
town. during 1912 concerning
shortage Of the firms funds prior
to Steinbergs arrest. Mr.. Fitzpat-
rick, who joined the Navy six
months before Pearl Harbor. said
he did not inform officials of the
firm, since 1T was only rumor.
and didn't consider it any of my
business"
Comdr. Fitzpatrick. in direct tes-
timony yesterday, told the jury that
Steinberg during conversation in
local hotel had admitted that he
had embezzled funds from the For
man firm
The naval officer, who appeared
in uniform, insisted his testi-
mony had nothing to do with
the military service and asked to be
called DIR" He has Phi. D. degree,
and was former dean of Columbus
University Law School, He testi-
fled Steinberg had asked for help,
that he had refused and had ad-
vised Steinberg to get a criminal
lawyer.
Jury Is Excused.
Defense Attorney Garfield In
brief cross examination before court
recessed yesterday began asking DR..
Fitzpatrick about his activities as
counsel during the formative stages
of the Forman firm. After objec-
ton by Mr.. Margolius to the line
of cross-questioning, the jury was
excused and Justice MCGUIRE heard
extended arguments between coun-
sci over the proposed plan for
cross examination. Mr.. Garfield
indicated he planned, if permitted
by the court, to prove "bias and
prejudice on the part of the wit
ness.
The story of how Steinberg had
paid $4,000 in bills to a representa-
tive OF two bonding companies so
the companies would not suffer loss
from any shortages found in the
Forman firms accounts was told
to the jury by William E. Cumber-
land, attorney. who represented the
bonding companies.
$4,000 Carried in Stocking"
The $4,000 was carried bv Stein
berg in his stocking" in the form
of nine $1,000 bills, and ten 500
bills. the witness testified
The money was accepted in Cum
berland's Office and locked up in
a safe deposit box where it still
remains, Mr.. Cumberland con-
tinued. The two bonding COM
panies between them paid in full
the Forman company claim on
shortages. he added. although one
of them paid only part of their to-
tai liability because their contract
had been in effect for only one
month.
Asked why the $4,000 in bills was
not turned over to the bonding COM
pany, Mr.. Cumberland said his firm
was keeping it in trust for whoever
it belonged to, Forman-or, he added
as an afterthought, maybe Stein
berg"
Guilt Not Discussed.
He insisted the transactions and
conferences in his Office over the
matter were strictly in adjustment
of civil liability. and that the
innocence or guilt" of Stein
berg were never discussed. He said
Steinberg told him the shortage
money was transferred by him from
the Forman accounts because he
had been promised a share in the
firm, bonuses, and pay increases
Gilbert Smulkin, certified public
accountant explained to the jury
at length. and through use of a
blackboard, how he claimed Stein
berg had manipulated the tForman
books so as to conceal withdrawal
of cocb