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; ? ina al indictment against the subjects be kept open until April 30, 1947, the maxisum period within which a motion for a new trial on the grounds of newly discovered evidence could have been made. Mr. KOSTELANETZ wrote that without the threat of punishment "these gangsters" might use violence and coercion to bring about a change of testimony by Chicago witnesses in the anti-racketeering case. Furthermore, no useful purpose would be served in keeping the mail fraud case alive after April 30, 1947 inas- much as the court might impose concurrent sentences and the Government would have to spend large sums of money. Therefore, KOSTELANETZ recommended that the nolle prosse of the mil fraud indictment be made after April 30, 19472 He also recomended a nolle prosse of the indictment against HARRY HOCKSTEIN for the same reasons and because the chances of obtaining a con- _wiction were extremely doubtful, It was also recomended that ISADORE AE be sentenced on the perjury indictment after the nolle prosse of ' the mail fraud indictment because of his previous good reputation, plea of guilty and later cooperation with the Government. According to this confidential memorandum it was also recommended by KOSTELANETZ that the case be assigned to his assistant, RAYMOND P. WHEARTY. In addition to the above memorandum, a con- fidential memorandum for the file by BORIS KOSTELANETZ, dated July 17, 1946 was located. In this latter memorandum it was set forth that KOSTELANETZ had discussed the disposition of the case with the Attomey General and with Mr. JAMES P. McGRANERY on July 16, 1946, The Attorney : General directed that BORIS KOSTELANETZ be appointed a Special Assistant to the Attorney General for one day after April 30, 1947 to follow through on his recomendations in the foregoing memorandum. BORIS KOSTELANETZ, according to this memorandum, related the wishes of the Attorney General to Mre Caudle, of the Department. It was agreed by all, according to this menorandum, that no statement would be made to counselloss for the sub- jects in regard to the Government's plans other than the statement that the indictments could not be nolle prossed at that time but fair dispos- ition would be worked out in due course, om wee Sy “8 peo press A SO oT hgh ra wr ~ ~~ a! 2 oe ete wey ey we eee