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Zwiliman’s a! Habits Told ‘Extravagant, ‘Gener ous” but Not ‘Cheat,’ us chent asa man who not only was devoid of any| intent to cheat the government out had actually overpaid his in- tome taxes, Toolan painted this picture in opening for the defense ia Zwill- nan’s trial on charges of having! evaded payment of taxes of $46.100 for 1947 and 1948. Toolan presente dhis opening after As-| sistant U.S, Allorney Wilfred W. Hollander, opening for the gov- ernment, told the jury they would; be given enouzh facts to draw the fair inference that the de- fendant had deliberately cheated son his income tax returns in those years, . Toolan said that Zwillman had overpaid his 1947 taxes by more than $18,600 and his 1948 by more ‘than $20.000. His client, he said, got refunds in those amounts. He added: ‘ “A Man of Means” * "This is not a man with a criminal intent to cheat. The record shows that he estimated his taxes generously “He was a man of considerable means. Petrhaps he was extrava- gant but it is no crime to spend money. He made no illicit ex-, penditures. He spent the money on his wife and two children, on his home (50 Beverly Rd., West Orange) and on his father-in-law. Eugene E. Mendeis, who lives with them. : “The government has kept a magnifying glass on what Mr. Zwillman paid for his groceries, en his bills for the butcher. the baker and candlestick maker. This man has lived in a glass” cage.” Toolan emphasied that the gov- ernment it prove beyond a rea- sonable doubt that the sums. Zwiliman spent in excess of his reported income was income earned “from some likely source, in those particular years.” He! said the government would fail to Present such proof, All One Pocket In the government's opening. Hollander said that the prose jon would’ -y Brg 2 _ C by Zwillman’s wife and by bis} father-inlaw cal ntially| from Zwillman and therefore! must be treated as a unit. “As an example,” he said, 1941 the defendant made a gift of the Public Service Tobacco! Co. of Hillside to his wife. But the defendant draws a $13,000 sal- ary from that company, borrows, money from it and personally, lends the company’s money to his} (riends without notes and without) interest.” Hollander told the jury that the government had made an exhaus- tive investigation to make sure that the large sums spent by Zwillman in 1947 and 1948 had rot been lent or given to him or nherited by him. He explained it length the net worth theory on vhich the government is basing ts case. He added: “John J. O'Hara, special in- ernal revenue agent, made a node} investigation, He inquired of every stock broker on the New York Stock Exchange. He went ‘rom store to store in certain owns, He covered every bank n the state. os, place was take: prander |Living tone of Fe Piirepont ‘ave., Rutherford, the first of four! ‘alternates selected Jast week. Defense counsel took deposi- tions Friday from Mendels, 82, ‘who is at the Zwillman home while recovering from an opera- tion. Government lawyers at: tended and cross-examined Men-/ dels. Depositions were authorized: by the court on a plea by defense ‘counsel that Mendels, a key wit) ness, mighruvtwewable to come to court to testify. | “In 1947 the defendant spent 3110,000 on clothing, furniture, emodeling his house and sump-}f mous vacations. Some of these oxpenditures were made by Mrs. Hy swillman. After allowing the de-|r endant credit for all funds avail-},, tble to him in those years, we |, iave $40,000 unaccounted for in 1947 and $50,000 in 1948.” The trial started today with aj; iury of 12 and three alternates n the box. One of the original jurors, Harry P. Anson of 19; King St. Morristown, was taken sick immediately after he was sworn in last Wednesday. He was still ill tedepuand was ex- cused by Judge Wortendyke. His NEVARK EVENING NERS Newark, New Jersey Nete_j-27- l . Edition off SUBMITTED BY THE NEWARK FIELD DIVISICN Page_[- \- L99= NOT RECORDED 138 yon. . 1956