Evening star., 1937-12-19
Elmer L. Trey Rounds 30 Years
Of Tracking Big Crime Came
Head OF Treasury s
Agencies Hopes for
'AnOther Thirty
By REX COLLIER,

started out on what seemed to be
rather prosaic career as a Govern
ment clerk.
Today the erstwhile clerk, Elmer l.,
Trey, can look back on years replete
with extraordinary service as a Fed
eral investigator.
His Is story of skirmishcs with Al
Capone, Dutch Schultz and other no.
torious racketeers, Of tense vigils at
6ourland Mountain in the efforts to
ransom the Lindbergh baby and of
such other achievements as the re-
covery OF hundreds Of millions of dol
lars from tax evaders and the co-ordi-
nation of all Treasury investigative
activities.
The boyish Government clerk Of 30
years ago little suspected he was en-
tering on career of high adventure
when he reported for duty at head
quarters Of the Postal Inspection Serv-
tee in the old Post Office Department
Building on December Is. 1907. His
assignment to this service was a casual
one, but 1t proved fateful.
His first duties included taking down
reports on investigations conducted by
postal inspectors. He wrote up for
these operatives reports on spectacu-
lar mail robberies and postal frauds of
many kinds-clues found. witnesses in
terviewed, suspects arrested and aues-
toned, confessions obtained. It was
highly interesting work for any youth
and it fired young Irey's imagina-
ton. His chief ambition now was to
become a postal inspector. 1t was not
many months before his abilities as
an investigator were recognized and
utilized.
Founded Tax Unit.
For IL years Mr. Trey continued in
the Postal Inspection Service. Dur
ing part OF this time his work came
to the attention of an Assistant POST
master General, and Mr.. Trey created
such a strong impression that the
omclal remembered him several years
later when he had need for an in
Vestigator to do special Job. The
Assistant Postmaster General was
Daniel c. Roper, now Secretary of
Commerce.
In 1919, when Mr.. Roper was in
ternal revenue commissioner under
President Wilson, he arranged for the
transfer of Mr.. Trey to the Internal
Revenue Bureau to conduct an in
vestigation of income tax frauds,
which had reached scandalous pro-
portions with the doubling of income
taxes during the World War.
Mr.. Trey established an intelligence
unit in the Internal Revenue Bureau
and with Mr.. Roper's approval brought
into it five of his former colleagues in
the Postal Inspection Service. That
was the nucleus of an organization
which numbers today about $50
trained investigators who have been
notably successful in matching wits
with and outsmarting a wide variety
Of tax law violators.
The work Of the newly formed in
teiligence unit at first gained little
public notice. Occasionally it was
mentioned in the press in connection
with tax fraud disclosures and prose-
cutlonS, and special notice was given
when the unit broke up a Million
dollar liquor tax evasion conspiracy.
The Capone Squad.
Meanwhile, AL Capone and his gang
we're at the height of their reign of
lawlessness. They defied police and
public opinion. Fearful Of Uncle Sam.
they watched carefully to avoid any
f1agrant violation of Federal laws.
Capone had heard of income tax
laws, but he paid little attention TO
them. Who would think of invas,i-
eating AL Capones income-or dare
to do It? However, to 1e on the safe
side, he juggled his books-such as
they were-and kept them hidden
from prylng eyes. He let no one
know what gambling dens and dis
orderly houses he owned or con-
trolled, or what beer running syn
- d1cates poured their illicit gains into
his secret bank accounts. Those who
tried to muscle in or who got too nosey
usually were found riddled with ma
chine gun bullets in some dark alley.
Chief Trey called in his best agents
and together they vowed to get" AL
Capone. He created q secret "Capone
squad" and placed in charge of it
Frank Wilson, a quiet, bespectacled
Baltlmorean. Wilson now is chief of
the Secret Service. The squad, later
to be dubbed the "untouchables.
worked in close co-opera ton with the
Chicago office of the Intelligence Unit,
presided over by A. P. Madden. The
agents delved deeply and impudently
into Capone's financial affairs. They
scanned bank accounts of Capone's
relatives and known associates. They
checked ownership of buildings and
businesses in Cicero, Capone's head
quarters. They traced purchases of
automobiles and palatial homes used
by the Big Shot" They invaded
gambling houses and vice dens. and
questioned scores of underworld
figures.
Then the Lindbergh Case.
Eventually they pieced together an
amazing record of illicit profits lead
ing direct to Capone; profits that had
not been reported to the Government
and on which no income taxes had
been paid.
The result is too we'll known to
elaborate on here. Briefly, AL Capone
went to prison for IL years. and the
Government found itself in possess
sion OF an all-powerful weapon against
other crime syndicates-the income
tax laws. Countless numbers of
rscketeers have felt the effect of this
potent weapon.
1t was the Capone case which in
directly led to Mr.. Irey's participation
IN the Lindhergh kidnapping inyesti-
cation. A few days after the abduc-
zion OF the baby the underworld was
Sull OF rumors that the crime was
committed by the Capone gang. One
report was that the kidnapping was a
scheme to permit Capone to get out
OF prison to hunt" for the child.
BY restoring 1t to his parents he would
thus become hero and could demand
. pardon.
Col Iipdhoruh