Evening star., 1946-01-05
Justice Proctor 10 Rule
Thursday on Move ~
To Kill Fraud Case =


Proctor today was considering
whether to throw out the mail fraud
case against five defendants. identi-
fed with Engineers Group. Inc, but
will not announce his decision be-
fore Thursday, when the jury re-
turns. The trial has adjourned until
then.
The jurist has under consideration
a motion for directed verdict and
the Government has until Monday
to file brief answering one by
counsel for Representative James M.
Curley, Democrat, of Massachusetts,,
a defendant, opposing the admission
OF the transcript of proceedings in
a West Roxbury (Mass.), court re-
lating to Representative Curley. The
Government wants those proceed
ings considered in the current case.
Mr.. Curley, one-time president of
Engineers Group, Inc, which the
Government says was a cloak for
the mail fraud and conspiracy. is
to be sworn in as mayor of Boston
on Monday.
U. S. Drops Two Counts.
The Government is abandoning
two counts of the indictment, Will
liam A. Paisley, special assistant to
the attorney general, advised Justice
Proctor yesterday at the close of
the arguments on the defense
motion to end the case. Mr.. Paisley
made nc explanation of why the
Government is abandoning these
counts.
William E. Leahy. attorney for
Mr.. Curley, declared the Govern
ment has failed to prove guilty
knowledge of an alleged mail fraud
conspiracy on the part of the
defendants. He stressed the point
that Mr.. Curley never received a
cent from the group, that he never
wrote letters about it, never solicited
business, did not know the terms
of any contract and made no repre-
sentations.
Mr.. Leahy said Mr.. Curley never
made any statements about the
firms financial status and never
engaged in any conspiracy to de-
fraud anybody out Of anything. The
lawyer insisted the Government had
failed to prove a continuing scheme
to defraud and said if any such
existed, it involved different groups
of people at different times, con-
cerning different subject matter.
inadvertently. in the course of
his discussion, Mr.. Leahy mentioned
the name Kelley, instead of Curley.
John M. Kelley one of the prosecu-
tors, jumped to his feet and said:
Il resign" when the defense counsel
identified him as president of En-
gineers' Group, Inc.
Scheme Pictured as Fiction"
Mr.. Kelley branded the defend
ants scheme as sheer fiction to the
point Of fantasy" in dissecting the
evidence and attempting to convince
Justice Proctor that each of the
five is guilty.
Donald Wakefield Smith, former
member of the National Labor Re-
lations Board, a defendant, had
told client that the group made
no pretext of carrying large bank
balances, but cut frequent and
sizeable dividends. Mr.. Kelley con-
tended. The defendant Bert Hall
represented that he could obtain
aviation contracts, the prosecutor
said. Mr.. Curley was pictured by
members of the group to prospec-
tive clients as man of tremendous
political power, Mr.. Kelley main-
tanned, and Mr.. Curley was present
when business deals were discussed.
James Barton Underwood, an
other defendant, was president of
the group and took an active part
in proceedings, Mr.. Kelley con-
tended. The prosecutor told Justice
Proctor he would give scant atten-
ton to the defendant James G.
Fuller, who was executive vice pres
ident of the group. Borrowing one
of Fuller's own phrases in a letter,
Mr.. Kelley said, that it would be
"too superfluous" to recount his
manifold activities.
Attorney T. Emmett Mckenzie,
representing Fuller, who is now
serving five year sentence for
sending fraudulent securities
through the mails, told the jurist:
This is a terriflcally weak case
against these defendants"