Daily News from New York, New York • 59

DAILY NEWS, SATURDAY. DECEMBER 16, 1972 LXjH J.X Li: 1 i.4. 5 By ALFRED ALBELLI A self-styled "religious -man" serving 25 years to life for a slaying 10 years ago was judged by the Appellate Division yesterday to have been mentally incompetent at the time of his trial. The court unanimously reversed his conviction and ordered a new trial. The-defendant, an inmate of Green Haven Prison in upstate Stormville, is James Mullooly, 51, who was convicted in February 1963 of the fatal shooting on June 11, 1962, of Taylor S.

Gay, 55, an vice president of Phillips Petroleum Co. Mullooly fired a single bullet into Gay in the Hudson Manhattan Railroad terminal on Cortlandt St. after he Mary, who stood by her brother during the trial, admitted she had been dating- Gay for several years but insisted that their relationship was platonic and did not extend beyond an occasional, casual kiss. In its 5-0 decision yesterday the Appellate Division directed that a new trial be held within 0 days, failing which the indictment would be dismissed and the defendant discharged. Bail Set at $2,500 The justices also fixed bail at $2,500 pending a new trial but directed that Mullooly's present sanity "be reevaluated by the appropriate authorities before his release on bail.

Mullooly's attorney, William Leibo-vitz, said he would take immediate steps to carry out procedures necessary to have his client released in bail. found Gay there with Mullooly's sister, Mary, then 42. Mary was Gay's secretary. Gay had been legally separated from his wife for five years. It was stated during the trial that Mullooly, a traveling auditor, did not know Gay personally but "thought he knew him as the devil as the 'Rasputin' who had seduced his chaste sister." Mullooly, a bachelor, and his sister lived together for many years in Jersey City.

Gay, a 1929 Harvard graduate, lived at the fashionable Creek Club in Locust Valley, L.I. His wife, the former Berta Brych, lived in Manhasset with their daughter, Georgeanne, 19. "The man needed killing," police quoted Mullooly as saying at the time. "Somebody had to kill him. I took it on myself.

I am a religious man. I did not like the idea of a married man going around with my unmarried sister." James Mullooly at time of his arrest on June 14, 1962. alfflfflllllllllllfflllM Giving Can Be Fun Hot-Dog en i By MICHAEL PATTERSON A vigorous police crackdown on licensed hot-dog ven dors was abruptly halted by the mayor's office yesterday in the face of thousands of complaints from pushcart owners that thev were being "harassed" out of existence. The crackdown which began Monday, was outlined in a department directive signed by Deputy Inspector William Gun- dersen. calling for the increased issuance of summonses and the impounding of pushcarts for 5" evidence.

Will Consult Committee After receiving a flood of com plaints from the city's 2,500 hot- dog purvevors and added pres sure from Local 627 of the Provision Salesmen and Distributors Union, whose members supply the pushcart owners, the city I baeked down. A City Hall spokesman said the Police Department was ordered by Michael J. Dontzin, counsel to the mayor, to "sus pend" its crackdown. "The directive wiU remain sus T) pended," the spokesman saia. until the mayors inter-Agency Committee on Peddlers has a NEWS photo by Bill Stahl Jr.

Brian Bresg, 6, a visitor from Wappingers Falls, N.Y., helps Santa Claus decorate tree in The News lobby. Brian also brought gift for Christmas Toy Chest. All readers are invited to contribute, whether or not they can visit Santa. Donations every cent going to needy children may be mailed to Sally Joy Brown, The News, PO Box 1481, New York, N.Y. 10017.

See story Page 15. Gty Sets Erne 0 (old Sleet By ARTHUR MULLIGAN A fierce northeast storm, with winds gusting up to 50 miles an hour, roared up the coast and struck the city yesterday, starting as snow mixed with sleet and changing to heavy rain. It flooded roads in low-lying areas and made homeward-bound traveling chance to meet and examine the directive. Apparently the com mittee was not consulted. Vendors to Go to Court Despite the suspension, Sey mour Waldman, an attorney hired bv the hot-dog vendors, said he would go into court next week to charge discriminatory and ar bitrary action against vendors by the police.

Waldman said the department's campaign sprang from a crack down on unlicensed peddlers but has spread to licensed pushcart owners because of pressure by- store owners. Although they are licensed, hot-dog vendors must abide by city regulations such as not selling within 250 feet of a compet NES choto Jack Smith Boy join shis father at hot-dog vendors meeting yesterdiy. 50OG Ball Sef- In Mob Killing A reputed associate of Mafia mobsters in Massachusetts was held in $503,050 bail here yesterday after FIJI agents seized him in connection with a 19o7 gangland-style slaying near Boston and the bombing of a lawyer's car in Middlesex County. Mass. A U.S.

Magistrate Hard Raby set the ball and ssheduled a hearing Monday for Francis P. Sa-lemme, 39, of Sharon, who was arrested on the street here. FBI agents said he had been living in a Yorkville apartment hideout. Salemme was indicted in 19'j3 for the murder of William Bennett and is also under indictment in Middlesex County, in connection with the bombing of the auto of attorney John Fitzgerald, lawyer for underworld figure-Joseph (Baron) Barfloza." Ml ing store, at intersections and on certain streets. Maurice H.

Nadjari, the spec slow and hazardous. The storm started here in mid-morning and caused slippery road conditions in Long Island, Northern Jersey and upstate New York. Nearly an inch of snow was reported in Port Washinton, L. before the precipitation turned to rain. Upstate and in New Jersey the warming trend occurred later.

Rough for Long Islanders Long Islanders, suffering through the 16th day of the Long Island Railraod Strike, found driving conditions more intolerable than on any day since the walkout started. An increase in Christmas shoppers added to the problems. J. Henry Weber, NEWS chiefs meteorologist said that the rain would turn to snow again before ending this morning, but that there would be no appreciable accumulation of snow. He said that the 1.5 inches expected to fall before the storm passes on the Mnnr r1 rfn A rvnll hnfn nA.AfA ial state prosecutor, is reportedly investigating charges that policemen in the Wall Street area have accepted payoffs from peddlers for not enforcing the regulations.

N.J. Daily Lottery Winner Friday: 1 8449 The prizesr S2.500 If your ticket matches the winnrra number. S225 if the five 9 ts are right, but in reverse order. Also S22S if either the last four or the first four match. $25 if the first, middle or last three match.

Also S25 if all five digits are correct, but appear in scrambled orfler. $2.50 if any too consecutive diflits match the winner. NEWS photo by Charles Frattini up to 15 inches of snow- were- Liberty and yesterday arent the temperatures'beltfw frefezirigl-' let ites" hi their fatnbrella during' 'i lPllS. JJ.1J..