Business: Guilty Harriman

Last week a Federal jury in Manhattan found Joseph Wright Harriman guilty of ordering $1,713,000 worth of false entries in the books of his now closed Harriman National Bank & Trust Co., of misapplying $600,000 in assets. On the stand Defendant Harriman, much improved physically and mentally since his half-mad nights from a sanatorium last year, craftily tried to shift the blame to his co-defendant and onetime executive vice president, Albert Murray Austin. The jury acquitted Austin on all counts.

Federal Judge John C. Knox complimented the jurymen on their five weeks' service: "The verdict is altogether understandable. As to Defendant Austin, I dare say you found him, as I did, to be one who took his direction from the man in control . . . and therefore such guilt as might rest on him was of a different type than that which characterized Mr. Harriman. ... I hope that other bank officers, entrusted with the proper use of the moneys in their care, will take this verdict very much to heart."

Mr. Austin sobbed soundless relief. Mr. Harriman licked dry lips noisily. Then Harriman and his white-haired wife went home to the Doctors' Hospital where they have both lived as patients since last fall Maximum penalty for the 16 counts on which Harriman was convicted is 80 years in jail, $80,000 fine.

Three days after the verdict a woman hurtled down past the windows of Manhattan's Squibb skyscraper. Her body was identified as that of Sarah A. Burke. 55, Harriman's confidential secretary for 22 years.