Evening star., 1932-04-15
INCOME TAX LAW
is INVOKED BY u. S.
IN KIDNAPER QUEST

Continued From First Psge.)
very quietly after Capone, in a pub
llshed interview, offered to aid in the
baby quest providing the authorities
would release him temporarily.
During this period investigators were
known to be probing rumors that the
kidnapping was plot to obtain Capone S
freedom-or at least to secure conces-
sions for him from the Government.
Numerous Conferences.
1t is said the intelligence unit was
invited to aid in the investigation By
Col. Lindbergh Wilson and Madden
were stationed at the Lindbergh home,
but made frequent visits to New York.
They, with Chief Trey, had numerous
conferences with Lindbergh and with
the latters attorney, Col Breckenridge.
The trio offered to Col Lindbergh
all information concerning Capone and
his organization that had come into
their possession as a result of the in
come tax Investigations in gangland
II is understood this information had
no direct bearing on the reported con-
q
Of securing Capone's release.
The agents we're especially interested
however, in the ransom arrangements.
If a large sum of money was to be
paid the kidnaperS, the bureau wanted
to know to whom the payment was
paid. Under income tax laws such a
payment would be subject to taxation
by Uncle Sam.
Embarrassing Position.
Collection of such a tax obviously
would place the Government in the
embarrassing position of demanding a
snare OF the ransom demanded for the
childs return
1t can be stated definitely that the
Government has no intention whatever
OF taxing the $4,000 paid by DR.. Con-
don to an unknown person representing
the kidnaperS.
The Treasury is vitalIy interested
however, in bringing to Justice those
who received this money. ManifestIy
recipients of the ransom will not Ge,
clare the money in their income tax
returns next year. 1t is up to the
Government to trace them, lust as it
was necessary to trace Capone and
his associates.
wilson and Madden directed the long
investigation that led to the inprison-
ment OF Al and Ralph Capone and a
number of their henchmen for income
tax violations. Wilson was in personal
charge OF the probe, while Madden was
agent In charge of the Chicago Office
of the intelligence unit.
Capone Angle Dropped.
The pair had an intimate knowledge
of the Capone syndicate and its work
lngs. 1t was thought this information
might prove of value in the event of
the definite development of a Capone
clue in the kidnapping. 1t is under
stood the Capone angle virtually has
been eliminated from serious consid-
Grafton at the present time.
Identity of Wilson and Madden dur
ing their stay at the Lindbergh home
was unknown even to close observers
at Hopewell. The two operatives dealt
with Lindbergh and his i'm
mediate representatives.
During the period of the agents stay
at Hopewell Chief Trey made num-
Der of week end trips to New York for
consultation with his men and with
Lindbergh.
Trey was acting under orders Of Sec
retary Mills, who has taken deep per-
Sonal interest In the Lindbergh case.
Treasury officials Mum.
Treasury officials today refused to
confirm or deny the story of their par
ticipation in the kidnapping investiga-
ton, but The Stars information is
from unimpeachable sources.
1t was learned today that Trey was
at Hopewe1 within the past week in
furtherance Of the Governments efforts
to apprehend the mysterious stranger
who received from DR.. John F. Condor
on April 2 in New York cemetery a
box containing $4,000 in IS, $40 and
$40 bills.