Daily News from New York, New York • 3

DAILY NEWS, WEDNESDAY, AUGUST 23. 1961 nir rarer mi am MVami i a 2) VP By EDWARD O'NEILL and NEAL 1WTTKUSON Accusing Mayor Wagner and his family of ''fantastically hiyh livinef" at flracie Mansion, Controller Lawrence E. Gerosa announced late yesterday that he will send to District Attorney Hogan today documentary evidence of two alleged violations of the City Charter. Gerosa. an independent candidate for mayor, issued his charges through Deputy Controller Louis Cohen, who hap-pens to be a righthand man of Rep.

Charles Buckley, Bronx Democratic boss. Buckley is supporting Arthur Levitt. Wagner's organization opponent in the coming Iemocratic primary. I rv 1 I -J I. 'i i I i i a Mayor Wagner, in reply, vigorously denied any improer conduct, pointed out that Gracie Mansion must be maintained a city show-place and voiced re- Tr I Stilt- i i- I'M 4 INKWS foto l.y F.iil Iurer.

Jean lalrmple smiles htr apartment after brush ith burglar. city employes for your own personal use and your own personal property." 2. That over nearly eisrht years i'l the mayoral residence the Wairners contracted for $21 .:2 in interior decorating whi was done at city expense by a fitm in whirh "an in-law the family was a principal." Cohen, speaking wiih Gerosa's public r-lations ai.l. Walter Holmes, at his sMe. named the firm a- Katherine Cwdm.

of 3:5 K. St. He showed a bill with a notation in one corner, Reid Oi Church Road, tlieenwiih, I'min." A Telephoned Denial According to Cohen, the Edwards name represented a Co-Adin i I urglar's Act Flops; 14 I how Lady Sez: Cut! The thief who tried out a Inirglajy act at 4 A. M. yesterday in the home of Jean Dalrymple, Broadway producer and a director of the New York City Center, should have KW'S Kiatik IbHiimi-nto at hand.

Ilepat Controller l.oiii. ohen fire "luth-ln ins" harces at Mimr Jjnrr esterday. boiiu of tiiis. However, stl-fedly represenre-l 1I2.17-V1'I salaries of five servant k. bot-ter.

two maids and laundress. Offit-ial receM ions, which Cohen placed at pnis tni-el-larieous oullavs. raised total e- (1) carried a noiseless flashlight and (2) turned it on assK'iate related to Mrs. wanner, whose maiden name was Edwards. A call to Mrs.

Reid Edwards al Greenwich brought a spirited denial of the controller's "I am not related to Mayor Wagner," she said. has been no violation of the City Charter. I was married to the t- 1 Tiiuiiuirs hi me nans) in died before Mavor Wagner took i the pe. office. I have since used the name hl p-i for vegeta.de sooner.

I First, he didn't turn on the light after climbing; in a bath-1 room window of the third-floor apartment of Miss Dalrymple and her husband. Philip Ginder, at 110 E. 55th at Park Ave. In the gloom he missed seeing $10,000 to $20,000 In jewelry on a bathroom table. Then he entered the bedroom and clicked on his flashlight, awakening Miss I.

"I heard the noise and there in the corner was a man with a flashlight." she said. "I thought I must be dreaming, but I de-i cided to reach for a phone. Then he flashed th light in my face. "He turned it oiT again anil, i as 1 was saying to the operator. I '(Jive me the police- I have a I I burglar in my I 1 heard the floor creak as he left." Her husband slept through it all.

The burglar vanished before police arrived. Egghead Gives Soviet the Slip Vienna, Aug. 22 (UPI). Reliable sources said today a young Russian scientist ha defected to the West in protest auainst Soviet domination of his native Ukraine. He is believed to have gone to the United States.

The sources identified the scientist as Nikolai Ivanonvich Sereda. 24. an electronics specialist from Kiev. They said he slipped away from' a touring Russian party here last month and was granted political asylum by the Austrian government. Soviet officials here were described by the sources as Iwing "very upset" over the defection.

for meat and fish." Cohn said. Admires the Menu "They ate pretty gnd. I'll til you. You'd think they were feeding an army up there. Lobster, caviar, spia'-s.

steaks show 'm the bills they did very well. Mayor Watner in his reoly said "The three persons the controller says are citv employes, put- work in violation of th Controller Crroia Taking charges to DA gret that details "so sordid should le spread out in what is rapidly Itecoming a very sordid campaign." Cohen charged: 1. That Mayor Wagner took three Gracie Mansion household workers, who are city employes, to his Islip. L. summer home for June-September, and that Mrs.

Wagner later billed the city for food eaten by the three domestics at Islip. Cites Section $9 "This is a violation of Section of the City Charter and it constitutes a misdemeanor." declared Cohen. "You cannot take name. I am now Mrs. Roltert Lam bert." Cohen asserted that the letting of decorating contracts constituted a violation of Section Js of the City Charter which he said forbids city officers or employes to he interested in transactions with the city.

Violation Carries Penalty A violation is punishable upon conviction by imprisonment up to a year, a $500 fine or both and forfeiture of office. Coh' also handed out copies of a report declaring that the Wagner personal expenses at Grade Mansion since I. 1954, totaled $27 5,073.5. A employe not city halter, me in any sense of the word. They (Continue an page 6.

col. t) SIC Eyes Legal Of track Betting in War on Crime By FRANK IIOLEMAN Washington. Aujr. 22 (News Bureau). The New York State Investigation Commission is considering' a full-scale study of legalized off track letting as an antidote to crime.

Chairman Goodman Sarachan told Senate prolers today. "It may very well be that we a N'fcws reporter asked him if he 1. Thirty million Americans bet will go into that question and conduct an exhaustive studv to were reallv serious aUiut making fV i on the bangtails. 2. They bet about $3.5 billion a year legally at the track, another $50 billion with bookies.

They lose $5.5 billion a year, of which $5 billion goes to the bookies. 4. The bookies use $750 million a year to corrupt law enforcement officers. Crooked lietim a study of otTtrack betting. Calls Hoods Protected "In my opinion, the study would be worthwhile," Sat at nan replied.

He indicated the com- i mission has such a project under very active consideration. Cops in many New York cities are protecting professional gamblers, Sarachan told the Senators. Yoik cities, arrested 107 person and seized in cash along with a mountain of policy slips. punc-htMards. cards, dice, football pool cards, etc.

6.100 leM.kies in Slate the basis of the catch, the SIC estimated that gamblers in central New York alone mad- 5o million profit a year on a gross handle of half a billion dollars. It fiirured there were at least bookies operating in the state, although only fei-eral gambling stamps have been sold there. "Our investigation did include New York City," Saiarhjn conceded. "Hut we lielieve that New York City is a beehive activity for gambling." MeClellan pointed out that "hundreds of millions of dollars" e-cape federal taxation from ital gambling operations. the moral aspect." he 't the go eminent has i-bi'iTy i ba-e down fc I tbt Other that 20 testimony brought out companies are flooding see whether legalized gambling will reduce crime," Sarachan testified before the Senate's investigations subcommittee.

At the same time, Sarachan predicted stricter regulations on legalized bingo games to keep racketeers from horning in. First 3 Witnes-nes Sarachan and two other SIC tnemlers, Jacob Grutnet and Myle Itne. were the first witnesses as Sen. John I MeClellan (D-Ark.) opened his long-awaited hearings on organized gambling and crooked devices. The witnesses called for a federal wiretap law and stiffer sentences and a national crackdown on race wire services to put the hookies out of business, thus cutting off organized crime's major source of income.

After Sarachan left the stand. the country with a fantastic ar "The chief of police in of crooked do-it-yourself gam- bling equipment including community knows virtually everv professional gambler," he said. The Senators also heard testimony from John Scarne of Lynd-hurst, N.J., who descriled himself as a man who makes his living exposing crooks. Scarne provided a string of statistics on many things, including these, on horse t-pl ft. Goodman Sarachan tells Senate probers of gambling investigation in New York.

have the power to clean up gamblers." LC.il raids, SIC agents swooped 'on le.keH in i) N'ew magnetic lielt for dice rl'ers and contact lenses to read the backs of marked cards. Sen. Henry Jackson (D-ash.) agreed with the witnesses that federal action may be necessary. he warned against depending too nmch on Uncle Sam, saying: "'Local law authorities already i racing:.