Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1931-10-18
THREE YEARS
FUNDS PROBE
BEFORE JURY
Beer Baron's Income
Tax Case Finally
To Be Decided

FEDERAL BUILDING, Chicago.
Oct. l7.-tPD-Al Capone's income
tax case went to the jury at 2:42
p. m. to-day.
The conclusion today of the gov
ernment's incom etax prosecution
Of AL Capone, biggest gangster Of
them all. marked the end Of an
investigation that began three
years ago.
In thei interim many Of Capone's
allies were indicted. tried and con-
victed but the big fellow" was
not indicted until June 5 OF this
year.
Changed Plea
A few weeks later he pleaded
guilty, and appeared in the court
OF Federal Judge James II. VIII
kerson for sentence. But when the
court said 1t would not be bound
by any agreement fori eniency,
Capone withdrew that plea and
decided to fight the case. The in
dictmentl. including % counts
charged that he made 1885, 54
in the years 1924 to 1929 inclusive
and that he owed a tax of S215080,
out Of which he defrauded the
government.
The trial started Oct. 6, and
Judge Wilkerson examining the
veniremen himself. needed only
one day to complete a Jury.
The governments case empha-
sized fourp oints-Capone's attempt
in 1880 to settle his income taxes,
his alleged ownership of a pros
porous Cicero, III. gambling house,
his lavish manner Of living and
the receipt of $1,000 in Geographic
money orders while staying in
Florida.
Compromise Attacked
From the amount OF time con-
sumed both in testimony and
final arguments the prosecution
evidently considered the attempted
tax compromise its best line OF at
tack. The evidence consisted main
ly Of letters and conversations with
Lawrence p. Mattingly, a Wash
ington attorney who came to the
internal revenue bureau In the
spring Of 1880 bearing a power Of
attorney and stating Mr. Capone
would like to help determine what
his liability Is and then settle up"
The defense objected strenuous
ly to the whole line Of evidence.
the principal exhibit being a letter
from Mattingly TO the revenue
bureau laying that he had at last
got together some figures. 'the best
I could do" and that Capont was
willing to pay a tax on that figure
The letter stated Capone was a
mere employe of Johnny Torrio.
old Chicago gang boss. getting SIS
a week in 1924 and 1926 and thus
owing no tax for those years. In
1926 he joined a business enter
prise" with three associates Mat
tingly wrote, but the first two
years his returns were small. be-
cause he had no capital to invest.
The income he suggested as
fair was s26 1000 for 1926; s40.-
600 for 1927; 100000 for 1928 and
100000 for 1929.
The Cicero gambling house, was
shonn by government evidence to
have made a profit Of s889. 900 in
the five years.
The government then showed
Capone as a Spendthrift q mil
lionaire playboy. Although the line
Of evidence was objected to as no
proof Of income defense attorneys
said there was no doubt that
Capone spent huge sums OF money.
Michael Ahern going so far as to
say the evidence might warrant
a probate court to appoint a con-
servator for him."
The government figured his total
expenditure at 10000 in 1927:
$4,000 in 1928: and $4,000 in
1929. "All this money must have
come from somewhere. said
Asst. y. s. Dist. Atty. Jacob !.
GrosSman.