The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-06-26
RALPH CAPONE
|. IS MILLIONAIRE,
BEER DID IT
Brother of ChiCago'S Gang
Gar Piled Up Annual
Haul of 100000.
THRIvED FOR 6 YEARS
Income Tax Probe Reveals
Fortune; Draws Term
in LeavenWorth.
BY BRUCE CATION,
NEA Service Writer

NEA Service Writer
CHICAGO, June 26.-How much
money can a Chicago gangster make
in year?
A definite answer to that abb
sorbing question is available for the
first time. Federal court records
show that a gangster can take in
at least 100000 a year-with the
probability that it will be a good
deal more.
This is approximately four times
the annual salary of the President
Of the United States.
This figure is available because
Of the recent conviction of Ralph
Capone, brother of the famous
Scarface Al, on charges Of violat-
ing the law relating to the filing
of income tax returns and the pay
ing Of income taxes thereon.
$1,80O,OOO in Six Years
Three other gangsters - Terry
Druggan, frankie Lake and Frank
Nitto - are also under indictment
for fake income tax returns.
Ralph Capone, who is under
sentence Of three years in Leaven-
worth, and who will be one of
the few Chicago gangster1 actu-
ally to go to prison if the higher
courtr do not reverse his convic-
ton, banked $1,800,oOO in the six
years from 1923 to 1929.
Thus he was convicted not for
bootlegging, but for the profits he
made thereby.
Dwight H. Green, assistant United
States attorney who handled the
case against him, doesn't think that
that is the whole story, either.
"His total income" says Mr..
Green, probably was a good deal
higher than that, but if we were
called on to prove it in court, our
evidence would be rather meager.
However, the indications were that
it was substantially more"
Not Big Shot
Now Ralph Capone isn't one of
gangland'S big shots. He has a
famous and powerful brother, and
he had a good racket Of his own,
but he never was one of the real
headliners.
But Ralph Capone was able to
bank 100000 a year; and If you
ever wonder how Chicago's gang got
that way, you might ponder over
the size of that income for a while
remembering, as you ponder, that
Ralph Capone was only one of
many.
The Capone inc"~1e tax investiga-
ton took time - between six and
eight months. Meanwhile, the in
vestigators checked up to see if Ca
pore had made any tax returns.
They found that in 1926 he had
filed returns for the years 1922,
1923, 1924 and 1925.
His returns showed net incomes
of $4,000 for 1922 and $4,000 for
each OF the other years, and said
that the money was made in
"speculations." The $4,000 tax due
on this money, however, never had
been paid.
Fortune in Beer
eve also got evidence to show
how his money had been made"
says Green. "At the trial we had
testimony from men who had OPP
Grated saloons. Many Of the de-
posts on Capone's various dummy
accounts were checks given him by
these people-and they testified that
the checks were in payment for
beer.
Originally they were paying $35
barrel for the stuff. Then the
price went to $40, then to $50 and
finally to $55, -7hichI understand is
the price now"
So Ralph Capone, convicted, faces
a trip to Leavenworth. But when
I asked Mr.. Green If it might not
be possible for the government to
send some more gang leaders to
prison in the same We. seeing that
Chicago seems unable to put them
there for murder or robbery or boot
logging, he shoc.l his head doubt
fully.
Garry Their Rolls
"The trouble is" he said, that
they don't have bank accounts any
more. The gangsters won't take
checks now-nothing but cash. And
they don't deposit their money in
banks. They carry it around with
the n"
"rhen," 1 said, "the average gang
ster must have a pretty stable roll
of money on his hip all the timer"
Green nodded.
He does"