Evening star., 1946-01-04
Government Comedies
WEAK Case Against
Two in Fraud Trial

The Government conceded today In
the mail fraud trial involving En-
gineers' Group, Inc, that evidence
against two defendants, James Bar
ton Underwood and Bert Hall. is not
as strong as that against Donald
Wakefield Smith, former member of
the National Labor Relations Board,
and Representative Curley, Demo-
crat, Of Massachusetts,, who takes
office Monday as Mayor of Boston.
William A. Paisley, special assist
ant to the Attorney General, in ar
guing against a defense motion for
a directed verdict of acquittal, made
this statement after District Court
Justice James M. Proctor had asked
If he thought an ordnance engineer,
employed by the Group, had not
taken more active part in the all
legged conspiracy than Underwood.
Mr.. Paisley said the engineer was
an employe, while Mr.. Underwood
was president of the group.
Calls Evidence Adequate.
He called the defense arguments
yesterday typical jury speeches, not
appropriate to a motion of this
kind"
The prosecutor said: 1--WE think
there is substantial evidence shown,
so far, of a scheme to defraud and
conspiracy to use the mails in
executing that fraud"
Mr.. Paisley asserted that the
Group, which the defendants al
legedly operated. got from 100000 to
$4,000 from individual contractors.
None of this money was returned,
he said, except in three instances
and this totaled about $4,000. No
contracts were secured for contrac-
tors and, he contended, every one
connected with the Group dropped
out as rats forsaking" a sinking
ship"
Jury Is Excused.
Another defendant, James G. Full
Ter, executive vice president, fed
when the enterprise went on the
rocks and left no forwarding ad-
dress, Mr.. Paisley said. Fuller now
Is serving five-year term for send
Ing fraudulent securities through the
mails, but at present is in custody
OF deputy United States marshal.
Justice Proctor has excused the
jury until Thursday when the argu-
mentS on the motion for a directed
verdict are being conducted.
The jurist gave the Government
until Monday to file a brief in an
swer to one filed by Defense Coun-
sci William E. Leahy and Nicholas
j. Chase, on behalf of Representa-
tive Curley.
This relates to a transcript of
testimony in a West Roxbury
(MassD court concerning a $3,5O0I
transaction. The defense contends
that this was purely personal and
not connected with Engineers
Group, Inc, the Government says
it was linked to Group activities.
Challenges Conspiracy Proof.
Mr.. Leahy, in urging Justice
Proctor yesterday to grant a di-
rected verdict of acquittal for all
five defendants, maintained that
conspiracy was not proven. Even
If there was conspiracy, he
said, it would fall into two general
classif1cations-one involving hous-
ing and the other machinery. He
characterized the indictment as
sophomore.
Mr.. Leahy argued that there is a
fatal variance between the allega-
tions of the indictment and the evi-
dence produced in court by the Gov
ernment.
Several prominent persons con-
nected with the Group, including the
treasurer and general counsel, were
not indicted, nor were they called
as witnesses, Mr.. Leahy empha-
sized. Gaps in the testimony
are filled in with suspicious and
guesses, he said. Representative
Curley didn't get cent of Group
funds, as shown by an FBI financial
summary of its activities, Mr.. Leahy
declared.
THE Government will never be
able to show that Gov. Curley was
involved IN any wrongdoing," said
Mr.. Leahy.
Failed to Get Breaks"
The lawyer added that if the firm
had gotten a break" in securing
contracts, it would have paid of all
the contractors who gave 1t fees and
the case would never have been
brought.
I'VE have two different groups
coming on the scene of activity, yet
all thrown into the hopper, under
this silly Indictment" Mr.. Leahy
said.
The lawyer asserted that the only
one with knowledge about machin-
eiy, housing, ammunition, shells, etc.,
involved in the Group contracts was
Mr.. Fuller. There is so little evidence
of corporate action that the drafter
of the indictment did not have the
"temerity" to charge the Group as a
defendant, he asserted.
Arthur j. Hilland, counsel for
Underwood. said the latter was elect
ed president of the Group January S,
1912, but resigned February 16 Of
that year. Evidence fails to show
that he had any knowledge of any
scheme to defraud, he told Justice
Proctor.
Attorney jeff Busby, representing
Hall, said there Is no incriminatins
evidence against his client, who was
with the Group only about six weeks.
Mr.. Hall had no knowledge of any
criminal act being committed by any
one in the Group, he said
"If any one is entitled to a directed
verdict, it is this man." said Attorney
T. Emmett Mckenzie, speaking on
behalf of Fuller.