Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-08
.CAPONE ADMITTED
+. LIABILITY, IS CLAIM:
u. S. Seeks Right 10 Prove
Gang Car Offered TO
Settle" in Part. . : .
BY the Associated Press.

BY the Associated Press.
FEDERAL BUILDING, Chicago, Oc-
tober 8.-The Government attempted 10
introduce into the records of Al Capone' =
income tax trial today mass of docu-
ments purporting To show that the gang
chief had admitted tax liability and
attempted to settle with the Revenue
Department.
AS the first witness was called and
the prosecution asked him 10 identify
one of the documents, defense attorneys
announced this Is line Of evidence
to which we object strongly and are
prepared to argue point of law" The
jury was excused and Assistant United
States District Attorney Samuel G.
Clawson read to the court what he
expected to introduce as evidence.
Attorney Is Quoted.
This included the alleged statement
by a Capone attorney that the gang
ster admitted he owed some tax" and
would be willing to settle on the basis
of the following income, $4,000 In
1926, $4,000 in 1927. 100000 in 1923
and 100000 in 1929. Prior to 1926 the
big fellow made only SIS week as an
employee of Johnny Torrio, the attorney
was quoted as telling the government.
Lawrence b. Mattingly, Chicago at
torney, who Specializes in tax matters,
was the man quoted profusely in the
Governments exhibits.
The first exhibit of the group was a
power of attorney, allegedly signed by
Capone. in which the gangster informed
all those concerned that Mattingly
could represent him in conferences with
revenue agents and make any lawful
agreements on compromises with them.
Court Hears Report.
A stenographic report of an alleged
conference in which Capone himself
took part was also read TO the court,
but the gangster was quoted as saying
little except I'D rather let my lawyer
answer that" He did say, according
to the exhibit that he had no bank ac-
counts. no real estate. no safe deposit
boxes. that he owned no race horses
and that he carried his money on his
person
Mattingly. in letters to the Govern
ment agents. and in conversations. all
in the Spring of 1890, was quoted as
saying that Capone admitted liability
but that II was much less than the pub
lie and the Government suspected.
Since Capone left the employ of Tor
rio Cthe gang bass whose place he
took. the attorney was quoted as say
ing that the defendant had been as
ISOLATED with three other men in a
business. enterprise. but that because
Capone entered the business with 10
capital. his return in the first few
years was not large.
group of regular employees received
one-third of the profits, said a Mat
tingley letter to the Revenue Depart
ment, and Capone and the other three
heads of the business each took one
sixth
TIE Government yesterday tried to
link Capone with the gambling houses
Of Cicero. where the garg chief once
made his home.
None of the first five witnesses who
appeared at the opening of the trial
in Federal Court was able, however, to
state definitely that the gang chief re-
ceived any money from the gaming
establishments. Capone's small but
energetic defense staff SHIPPED constantly
at the Governments case.
His attorneys appear TO be egged on
by the scar-faced defendant He leans
forward and whispers to them every
few minutes. The rest Of the time he
elowers or smiles at the witness, ae-
cording to the way the testimony is
going.