Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-07
CAPONE'S MILLIONS
PICTURED AT TRIAL
Prosecution Charges Gang
Car Became Rich, but
Evaded Taxes.
BY the Associated Press.

FEDERAL BUILDING, CHICAGO,
October THE Government began its
income tax fraud case against Alphonse
Capone in deliberate, scholarly manner
today, charging that although the gang
emperor made million dollars and
more in six years from gambling land
other business enterprises" he de-
lioerately tried to evade payment of
taxes.
There was no mention Of the gang
sters reputed reign Of terror through
aSsasSinations as he faced his first jury
on bookkeeping charge.
Dwight H. Green. assistant district
Government case with an Unconditional
account of the two indictments Of %
counts against Capone and Of the vari-
Gus sums OF alleged income and taxes
from 1924 to 1929.
The evidence will show" Green said,
that the defendants manner of doing
business, his handling huge sums of
money in cash and Geographic money
orders, his dissipation of assets, all were
part of scheme to defeat and evade
the taxes. He had money in plenty,
but he. paid none of it TO the Gov
eminent"
The opening statement was delayed
about 40 minutes by conference be-
tween Federal Judge James H. Wilker-
son and counsel for both sides. The de-
Tense said it had learned reasons for
which one of the jurors selected yester-
day should be disqualified but after the
conference, the jurors were all allowed
to remain and there was no explana-
ton Of the objection.
I believe the court will instruct
you" said Green that it is not neces-
sary to prove the exact amounts; that
the Government need only prove that
the defendant had some net income on
which he paid no tax.
Jury Leans Forward.
'"The jurors, all middle aged or elderly
men, leaned forward and listened in
tently. The court room was silent ex-
cept for his voice. mainly because, Judge
Wilkerson had forbade any Of the 40
newspaper men to STIR
The evidence will show that this de-
PENDANT never filed return in this Fed
eral distriTt, never paid any tax for any
OF the years covered In these indict-
ments," Green continued. although he
maintained an Office, principal head
quarters and his principal residence in
this city"
The alleged liquor and vice branches
OF the syndicate supposedly headed by
the scar-faced Capone were not men,
tloned. Green said, however, the EVIL
dence would show that certain gam
bling interests in Cicero. with which the
defendant was connected" realized net
profits Of $4,000 in 1924. $4,000 in
1925. $4,000 in 1925 and huge sums"
in 1927. 1928 and 1929.
Inc Capone income which the Gov
eminent had uncovered was $123,lOl in
1924, S257 .285 in 1925, $195,676 In 1925,
S2l8,056 in 1927, $25,S87 in 1928, and
SlO3.999 in 1929. The total amount of
tax due was $2l5,080.
Transactions Hidden.
He carried on his business activities
in cash, checks Of other persons and
telegraph money orders.
The only defense objection during the
statement came when Green said that
after the Government began its investi-
CATION, Capone came to them and
through his attorneys admitted that he
had liability to the Government Judge
Wukerson overruled the objection, say
ing the jury would understand that it
was merely an opening statement and
net evidence.
Green said that late in 1927 or early
in 1928 Capone rented ''palatial home
in Florida" paying $4,000 for a six
months season. He added>that the de-
fendant later paid $4,000 for large
home In Florida and expended more
than 100000 for maintenance and i'm
provements.
He lived on very lavish scale, both
here and in Florida" said Green.
The first Government witness testi-
fed records in his Office showed that
Capone filed no income tax returns for
the years in question. The defense did
not croSS-eXamine.
Insurance Man Testifies.
Chester Bragg, an insurance agent
OF Berwyn, Chicago suburb, testified
that he, as a member Of the West
SUBURBAN Ministers and Citizens As
ISOLATION, took part in a raid on an
alleged gambling establishment in
Cicero during May, 1925.
I was assigned to guard the front
door while the other members of the
raldlng party went to the second floor
OF the building" Bragg testified. "A
man che identified him as Capone)
began pushing on the door to get in
II asked him, What do you think
this is, a party?' He said, I own this
place, So I let him in"
Bragg said Capone followed the raid
ing party to the second floor A few
minutes later, Bragg said, he heard
Capone ask the Rev. Hoover, a Berwyn
minister and leader of the raid, why
are you always picking on me?"
You pulled the last raid on me that
you're going to pull" the witness quoted
Capone as telling the minister.
Describes Capone Resort.
Bragg said the second floor of the
building was equipped with what he
believed to be roulette wheels chuck-a-
luck games and racing forms Under
cross-examination. however. he declined
to say he was positive that the equip
ment constituted gambling devices.
Capone was not arrested during the
raid, Bragg said, because, I believe.
the raiding party had no warrant for
his arrest"
When asked why Capone was not
subsequently arrested, Bragg replied:
don't pretend to know the intri-
cac1es OF the law in such cases. think
1t was rotten follow-up job by the
police after the raid"
PILOT SAYS FORBES
EAII tn GIVE AIN