The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-01
BY ROBERT TALLEY
NEA Service Writer

copyright. 1881. by NEA Service. Inc.)
CHICAGO, July 1.-The business
depression which reduced the de-
mand for Al Capone's liquor, gam
bling and vice may be responsible
for the gang leaders insolvency to-
day, but he owes his approaching
penitentiary sentence to a small
group of persistent men who worked
nearly four years to get him be-
hind the bars.
The intelligence unit" Of the
United States internal revenue bu-
reau probably is the least known Of
Uncle Sans investigating agencies.
1t hunts income tax dodgers quietly,
sticks with a given job year after
year, works behind the scenes, gets
no glory, wants none. In fact, this
probably is the first time you ever
have seen its name in a newspaper.
It's chief is Elmer L. Trey, a vet
eran investigator with many famous
cases to its credit.
Heading the Chicago division,
which comprises seven states, is A.
P. Madden, division chief. An ace
among its special agents is Frank
]. Wilson of Washington.
They're Not Detectives
It's men are not detectives and
do not claim to be. Mostly, they
are expert accountants and law
yers. They know little about guns
end nothing about DISCUSSES, but
they do know an awful lot about
bank accounts and financial trans
actions.
Give one Of them a few days and
he possibly can tell you more about
your financial affairs than you
know yourself.
They worked three and one-half
years to get the goods on AL Ca
pone, and in doing so they assisted
in the financial wrecking of his
gang by sending two of his chief
lieutenants to the penitentiary and
getting several more started we'll
on the road there.
Two in Prison
Frank Nitti, Capone gang treas
urer and alcohol king, and Sam
Guzik, its slot machine and vice
car, are in Leavenworth prison
now for trying to beat te income
tax law.
Ralph Capone, AIS brother and
chief of the beer division, is under
sentence of three years, but has ap-
pealed.
Jack Guzik, Capone's business
manager and head of the gambling
syndicate, likewise is under SEN
tence, but has appealed.
The trail that finally led to AL
Capone himself began late in 1927.
One of the bureaus agents found
that Ralph Capone had not filed
returns of 1922, 1923, 1924 or 1928.
He suggested to Ralph that he had
better file.
Claimed Insolvency
Ralph filed, but paid no tax, in
sisting that he was financially I'M
able. Pressed, he offered $1,000 as a
compromise. He represented that
he was insolvent, or virtually so,
and that his only holdings
amounted to half interest in race
horses of doubtful value.
In January, 1923, the intelligence
agents began to investigate his
ability to pay his taxes, penalties
and interest charges for the four
years.
Somewhere along the line the in
vestigators CHANGED upon a $500
NJ n 1Nxy ctr ~
whom they knew to be interested in
a slot machine racket. Who got it?
Bank accounts were quietly
analysed and it was found that
this check had been deposited in a
bank at Cicero (Chicago suburb
and Capone stronghold to the
credit of one James Carson
Make Amazing Discovery
Tracing the James Carson" ac-
count the agents made an amazing
discovery. They found that several
years before Ralph Capone had
opened an account in this bank un-
der his own name, and had then
opened and closed six successive &C.
counts under various aliases, dur
ing whiche timee 100000 passed
through these several accounts.
This discovery wasn't easy. The
bank officials said they didn't know
of any connection between the va
rioius accounts and therefore could
be of little aid. Moreover, the bank
officials we're not acquainted with
flames Carson" or any of the others
because, as they said, these Gus
toners had never come to the bank
They always sent the signature
cards out to them, it was explained
and deposits and Withdrawals were
made by representatives. The can
celed checks had been returned to
the customer long ago. There
seemed to be no trail to follow