The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-05
AL CAPONE IS
INDICTED BY
Federal Jury
Huge Income Tax Evasion
on GangIand Profits Is
Charged to Gar.
ENDS TW0-YEAR PROBE
Crime Kings Attorney Is
Negotiating for Plea
of Guilty.
BIZ United prcss

By United Prcss
CHICAGO, June "Scarface" Al
Capone was indicted today by a
federal grand jury on charges OF
evading payment Of income taxes
on the hundreds Of thousands Of
dollars he wrested from Chicago
rackets.
simultaneously, William F. Waugh,
one OF Capone's attorneys, revealed
that he had approached the district
attorneys Office with negotiations
for the gang chief to plead guilty to
the charges.
With the indictment was revealed
the story Of how government agents
conducted a secret two-year investi-
cation into Capones myriad Of
financial affairs from coast to
coast. questioned 1000 persons who
had dealings with the nations fore
most gangster, and called several
hundred witnesses before this and
previous grand juries before round
Ing out their case against Capone.
Made Huge Profits
The indictment charges that Ca
pone took $915,55295 in underworld
profits from 1925 to 1929, inclusive,
and that he owes the government
Sl82, 591.24 in taxes.
The indictment charges six sepa-
rate felonies and two misdemeanors
against the gang chief in a total of
twenty-three counts-enough to re-
move Capone from the gangland
picture to a prison cell for thirty
two years, if convicted.
Capone was reported hiding in
Chicago, pending outcome Of his at
torney's negotiations.
The indictment characterizes Ca
pone as Alphonse Capone, alias AL
phonse Brown, alias Al Capone, alias
A. Brown, alias Scarface Brown,
alias Scarface Capone, alias A.
Costa, the last new name for the
gang leader.
1t is charged that Capone made
gross income Of $257,236.98 in 1925
from his triple rackets and that he
owes for that year taxes Of $751;
365.25.
Others Sent Up
Al is among the last of the big
shot gangsters the government
hopes to put behind bars from now
until after the 1888 worlds fair.
Ralph, his brother, was convicted
and sentenced to three years;
Frank Nitti, AIS cousin, pleaded
guilty and was sentenced to eighteen
months: Jack Guzik, Capone's
right-hand man, was convicted and
sentenced to five years; Sam Guzik,
brother of Jack. was convicted and
sentenced to one year, and Louis
LipschuetZ, brother in-law of Jack
Guzik, was convicted and sentenced
to one year.
Besides them, frankie Lake and
Terry Druggan, predecessors Of Ca
pone in the beer racket, have plead
ed guilty tentatively. The charges
against all were evasion of income
tax
worst Ring Ever Known"
A. P. Madden, quiet-spoken chief
investigator for the revenue depart
ment, revealed to the United Press
that the wide-flung investigation
barred the Capone gang as "the
worst criminal outfit that ever ex-
isted," with Al Capone as the head
of the inner circle"
During all the inquiry, the inves-
tigators were unable to find Single
document on check bearing the
gang leaders signature. Neither
were they able to find that Capone
ever had a bank account, despite
the fact that he has handled mil
lions of dollars in his ten-year ca
reer as head of the Chicago under
world.