The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-13
HOLD FORMER
/. U. S. AGENT IN
CAPONE TRIAL
One Time Revenue Aid
Didn't Report Interview
With 'SCarfaCe.'
DELAY D'ANDREA CASE
Government BareS Lavish
Spending by Public
Enemy No. l.
BY RAY BLACK
United Press stan Correspondent

GHhtCA ANoS 0t&A NNfECspVnucuh
FEDERAL BUILDING, CHICA-
GO, Oct. BACKWARD Waters, for
mer internal revenue agent who
testified today at Al Capone's in
come tax fraud trial that he con-
ferred with the gang leader about
income tax and failed to report the
matter to his superiors, was ordered
held until conclusion of the trial
by Federal Judge James H. Wilker-
son.
1t was explained that Waters re-
tention was not an arrest. He was
ordered to report daily on the orig
inal subpoena, presumably for fur
Their questioning.
The witness said he chatted with
Capone about income tax matters
over stems of good beer" in a
Cicero smoke shop, one of Capone's
suburban headquarters.
Did you do anything as a result
OF this conversations" the judge in
quired
NO" Waters answered.
OdAlcu MACE SUN bOiOneY
did you have later CONVERSE
tons with the defendant"
Yes" said Waters, lin 1926
told Capone the papers were print
ing stories that he made $1,000 900
at the race tracks and owned a
string of race horses"
What did he Say?"
He said the race track stuff was
boloney and that the horses be-
longed to his brother Ralph"
Hearing of the contempt of court
charge against Phil D'Andrea.
chauffeur bodyguard of Capone, who
was arrested Saturday as he left the
federal building with a revolver in
his pocket, was continued today by
Judge Wilkerson until Friday.
Returned to Jail
D'Andrea was returned to the
county jail, where he has been
since his arrest, without being adj
mitted to bail.
Attorney Joseph r. Roach, asso-
ciated in the defense of D'Andrea,
told the court he was not prepared
for an immediate hearing.
Capone, on trial as a taxpayer"
who is charged with evasion of
$215,00 tax on an income of $1O38,-
654 in six years, has been pictured
to the jury of small-town trades
men as one who:
Got his start in life as a bar
keep in Coney Island IN. " sa-
loon.
Came to Chicago as a gang handy
man eleven years ago at a salary
he contends was only $75 a week.
Bought $4,000 Mansion
In recent years spent a winter in
Florida resort hotel with a retinue
of gunner, spending money like
water.
Bought a $4,000 Palm island
mansion and lavished 100000 on it's
fittings.
Bought italian glove silk under
wear at $12 a garment.
Ordered $135 suits a half dozen at
time, and $50 shirts and SIS neck
ties by the dozen.
Had a garage full of automobiles,
among them a $12,500 specially built
Mcfarland.
Spent Fortune on Gifts
Gave away as Christmas presents
thirty diamond-encrusted gold belt
buckles costing $275 each, one Of
which was worn by Alfred (Jake)
Lingle, Chicago Tribune reporter,
when he was slain.
Spent $3.50 in little more than
year on thirty-three cigaret
lighters mounted with small watches,
perfume atomizers, jewel boxes,
diamond rings platinum necklaces,
studded with diamonds and rubies,
and other novelties Of the gold
smiths and lapidarian's art.
Lived in gaudy splendor at the
Metropole and Lexington hotels in
Chicago, paying $500 and up a
week for rent, and peeling off bills
from a roll that one witness said
would choke an OK" to pay for
no rtiac cOcti,7cr "a 000 ~ mora aoofo