Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-09
IL. s. SCORES POINT
|. AT CAPONE'S TRIAL
Evidence on Alleged Offer of
Tax Settlement Is Ad-
mitted.
BY the Associated Pres

BY the Associated Press
CHICAGO. October Am alleged
admission by Al Capone through an
attorney that he was liable on = fotn-
year income of $3.50. 900 has ses1
brought to light by the Government N
/ its attempt to convict the gang cf,ies
as a Federal income tax dodger.
Documentary evidence, intended n
show that Capone once confessed this
liability was put into the records of
Capone's trial yesterday over the siren
uouS objection Of defense counsel. It
included a neatly typed two-page letter
treated by all concerned as a highly
! important document, the contents Of
which, however remained secret to
the jurors at the end Of the third days
session Of the trial But the world in
general knew that the letter was signed
Lawrence p Mattingly" that it was
addressed 10 the Internal Revenue Bu-
reau. and that it contained the alleged
edmission by Capone that he was not
only liable. but willing to pay tax on
the $266000.
Contents Kept Secret
The jury heard a witness identify the
letter and heard the court rule that Il
was admissible But Judge James II
Wilkerson. at the close Of session. asked
the prosecution 10 withhold the reading
Of the document.
Hes not sure yet. he may throw It
out after all commented Defense At
torney Michael Ahern.
The judge merely wants little more
evidence a little more background be-
fore this is read" said United States
District Attorney George E O. johnson.
The letter was the final exhibit in
series through which the prosecution
told Of Capone's effort. in 1890. to reach
On agreement with the Government on
his income tax. It was admitted after
three-hour legal argument. Judge
Wikerson ruling it could be considered
as an act by the defendants agent, not
as proof of what it contained
Louis Wilson. emplove of the Internal
Revenue Departments Chicago Office.
testified that il was brought into the
ofhce by Mattingly, a Washington at
torney representing Capone. with the
statement: Here's the best we could
Go and Capone is willing TO pay tax
on these figures"
Prior to the latter part Of the year
1925" read the letter in part. "he
tCaponel was employed at salary
which at no time exceeded SIS per week
During the years 1926 to 1929. inclusive.
he was the recipient of considerable
sums of money. title of which vested IN
him by right of possession. only. Tax
payer (Capone) became active as
principal with three associates at about
the end of the year 1925.
Because of the fact that he had no
capital to invest in their various I'M
dertakings his participation during the
entire year 1926 and the greater part
Of 1927 was limited During the years
1928 and 1929 the profits of the organi-
Zation of which he was a member were
divided as follows:
"One-third to group of regular en-
ployeS and one-SiXth each to the tax
payer and three asSocia ties. = Not
withstanding that two Of the taxpayers
associates from whom I have sought
| information insist that his in
come never exceeded $4,000 in any
one year. / am of the opinion that his
! taxable income for the years 1926 and
1927 might be fairly fixed at not to
exceed $4,000 and $40 900. respectively.
and for years 1923 and 1929 not to ex-
coed 100000 per year"
Authority Is Denied.
Capone himself was present during
one conference With revenue agents.
according To Government witnesses and
exhibits, admitting that he had never
filed a return, but referring all questions
regarding his income to Mattingly.
The defense argued that none of the
evidence should be admitted because it
constituted an attempt to compromise
criminal liability. The Capone At
torneys said Mattingly was not au-
thorized TO make such statements and
that the defendant should not be held
accountable for them.
An indication of Capone's financial
system was given by Miss Helen Alex
ander. Young, blond and comely. who
said she kept records of the safety
boxes in a Chicago bank, one of which
allegedly was rented by "Alphonse Ca
pone." She identified signatures on
pass cards to the deposit boxes as hav-
ing been made by Capone and pointed
out the signer as the bulky nattily
dressed defendant whom the Govern
ment refers to as "Scarface Capone."
al Brown Smoky "Ascosta" and
other names
She said Capone was a joint lessee
Of a safety box. visited it several times
to remove or make deposits and kept it
for about a year
Another witness was George Silently,
an Internal Revenue Department en-
ploye from Washington. D. c. He iden-
tilted a power of attorney document
given by Capone to Mattingly. The
document gave Mattingly power to act
in any and all matters concerning in
come tax" for the defendant.