U.S. District Court Judge James R. Miller has temporarily suspended hearing testimony in the tax case against Fairchild Industries and its chairman of the board, Edward G Uhl.
Miller dismissed the jury today, telling them he had to attend an out-of-town judicial conference. The testimony is expected to resume Monday.
The jury was also in recess most of last week and yesterday while the attorneys on both sides argued with the judge over the specifics of the indictment against the Germantown, Md., aircraft company and its board chairman. The arguments were prompted by a defense motion for a judgment of acquittal, which, if granted, would dismiss the case.
Fairchild and Uhl are charged with falsifying corporate tax returns for 1971 and 1972 by claiming a depreciation on company cars. The U.S. attorney has been arguing that Fairchild is not entitled to the depreciation because corporate officers who were selected for company cars reimbursed the corporation for 63 percent of their cost, and that money was used to make illegal political contributions.
Defense attorneys argue, though, that Internal Revenue Service rulings allow depreciation on any company asset that is used to generate money. Since the officers paid for using the cars, the cars did generate money, the defense attorney said.