CIA File on Ray, Manuel

SUBJECT: Case 4569E - Erquita Area Company

FEP : Support Speed Letter Did 12 Apr 65

1. The following will bring you up-to-date.

2. As we suspected (see LANJ 0557, paragraph 2), the Search Warrant signed 26 Mar 65 was predicated upon the testimony of Donmond O'Neill, Investigator, Alcohol & Tobacco Tax Division, US Treasury Department, given the same date, to the effect that "in pursuant to his authorized legal duties" he had observed 369 machine guns and one firearms silencer inside the building at 15036 Proctor Avenue, City of Industry, California, occupied by subject. Gene Price, Special Agent, (State of California) Department of Justice, testified also that he had probable and reasonable cause to believe that subject had machine guns in its possession.

3. The affidavit in support of the Search Warrant, the Search Warrant and its return with five pages of inventoried weapons were all filed on 5 Apr 65. On the 7 Apr 65 preliminary hearing of co-defendant Lowell V. Knudson, one machine gun, two silencers, and company books and records were introduced as exhibits. Several individuals testified, including a firearms expert and Gordon Ingran. Co-defendant Knudson was represented by Donald H. Kettner. After all witnesses were heard, Knudson was held to answer and ordered to appear for arraignment in Department A of the Superior Court on 22 Apr 65. He was released on his own recognisance.

6. On 22 Apr 65, Kaudaon was arraigned and trial was set for 14 Jun 65 at 0900. It will then be assigned to a particular Superior Court Judge. (Superior Court, Case No. 303253).

5. Incidentally, there is a fair chance that the trial judge may be A. Andrew Hauk, former shipmate and good personal friend of both the Chief and Deputy Chief, LAFO. Judge Hauk is a former GAI officer, and assistant counsel for Union Oil Company, Los Angeles.

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