A Question of Faith

When would-be Automaker Preston Tucker and seven associates went on trial three months ago for mail fraud conspiracy and violation of securities laws, the Federal Government marshaled an impressive amount of evidence. It brought into the Chicago court 73 witnesses and 1,000 documents in an attempt to prove that Tucker and associates had used $28 million raised in sales of stock and dealer franchises "for [their own] personal benefit and profit." The advertising of the Tucker Corp. was called a "pack of lies." None of the 34 cars made, said Govern" ment attorneys, had contained any of the revolutionary mechanical features mentioned in the ads.

The Government's case took 49 days. At its conclusion, Tucker's attorneys sprang a surprise; they offered no defense witnesses. "After all," said one, "it is impossible to present a defense when there has been no offense." Instructing the jury, Judge Walter J. La Buy said that the primary question was whether Tucker and associates had intended to defraud stockholders or had acted in good faith. Even though they had failed to make cars, said the judge, "good faith is a 'complete defense." This week, after 17 1/2 hours of deliberation, the jury acquitted Tucker and associates of all counts. Said one juror: "It wasn't so hard to reach a decision. From the beginning only two jurors voted guilty." Said Tucker, whose company is now under a trustee in bankruptcy: "It's been like a bad nightmare. This is a victory for the stockholders and dealers as well as free enterprise."

This file is automatically generated by a robot program, so reader's discretion is required.