Evening star., 1938-04-05
WARNINGS TRIAL
ON TAX CHARGES
. SEEN IN 6 WEEKS
Five Due to Be Arraiqned
Soon on Claim of
Numbers Profits.
INDICTMENT HINTS
SENSATIONAL TURN
Protection Payments Evidence
Given Jury-Fraud Plot Laid
to Defendants.
BY CARTER BROOKE JONES.

BY CARTER BROOKE JONES.
Tentative plans were made today by
United States Attorney David A. Pine
to hold within about six weeks the trial
OF the three Warning brothers and
two public accountants. charged with
conspiracy to evade payment of in
come taxes on revenue from the num-
bers game.
The trial probably will be set for
late in May or early in June
A joint indictment was returned
yesterday against Emmitt r., Leo Paul
and Charles Richard (Rags) Warning;
Gordon L. r. Sadur, head of Sadur &,
Co.. income tax accountants, and his
brother-in-law and business associate,
Henry L. Sherr
The five were charged with conspir-
ing to defraud the Government of
taxes on profits which the Warnings
made from the numbers business.
Meanwhile. Maj. Ernest w. Brown,
superintendent of police. disclosed he
has been in conference with Internal
Revenue authorities over allegations
OF the brothers in their tax returns
that certain sums were paid for pro
lection"
This matter was brought to his at
tention by Federal officials "a long
time ago. Maj. Brown said today.
An immediate inquiry was launched in
an effort to determine if any money
was received by police from numbers
racketeers. he said. but the investiga-
ton, which is being continued, has
failed to substantiate the allegations.
If there is any man in the Police
Department receiving graft. I want
to know about it." Maj. Brown de-
clared. I'VE have tried to learn the
identity Of the persons to whom the
Warnings allege they paid money for
protection, but they refuse to give
any names.
Il am awaiting with interest devel-
opments at the trial when the Gov
ernment will prosecute the brothers
on the phase of the indictment relat-
ing to protection payments"
MIR. Pine and Assistant United States
Attorney John j. Wilson are expected
to try the case for the Government.
Mr. Wilson presented it to the grand
jury.
Early Arraignment.
The five defendants will be arraigned
at an early date, possibly late this
week.
They surrendered promptly yester-
day after the grand jurors filed into
Justice Jesse c. Adkins court with
the indictment. They were accom-
panied by bondsmen, who posted the
necessary bonds.
Emmitt and Leo Warning were re-
quired to put up bonds of $4,000 each.
The third brother, Bags" is COM
pleting sentence of 18 months to two
years in the Atlanta Penitentiary for
completely in gang shooting. He will
be brought here for the trial.
Emmitt and Leo appeared in light
colored topcoats, both wearing dark
glasses.
Disputes Published Record.
Discussing published version of
his police record, Emmitt, reputed head
OF the numbers syndicate, said he
noticed he was reported to have re-
ceived once in pre-repeal days a SEN
tence of 10 to 30 days for possession
OF liquor. He remarked to a ne-,s-
paper man:
"1l bet you $1,000 against a penny
I never served DAY in Jail in my life"
The reporter did not take him up.
The dlminutive and dapper Emmitt
Warning did not seem to know what
he had been indicted for, remarking
to a record clerk at police headquar-
ters, where he was booked, that he
thought it was for Stealing from the
Government
Sadur and Sherr were allowed to
post bonds of $2,50O each.
While none of the defendants or
their attorneys would discuss the
charges against them, there were every
indication that pleas of not guilty
would be entered and the case fought
vigorously. Whether the indictment
will be attacked with preliminary legal
motions has not yet been revealed.
When the bonds were posted. Harry
T. Whelan appeared as attorney for
the Warnings and Myron G. Ehrlich as
counsel for Sadur and Sherr.
Sensational Trial Possible.
There were indications in the indict-
ment that the trial may be sensational.
Wide speculation was caused by a
clause in the grand jury's accusation
Charging it was part of the alleged
conspiracy for the defendants to con-
ceal under tax-exempt entries in the
books OF their numbers business pay
ments of large sums" to persons un-
known to obtain Immunity from
prosecution for violations of the laws
OF the District of Columbia prohibit
ing gambling"
The indictment did not reveal fur
ther details of these alleged protection
payments by the Warnings or their
amounts, but this phase of the case
Is expected to be developed fully at
the trial.
The Warning brothers, according
to the indictment, built up a numbers
business in Washington which made
net profit of some $237, 900 In three
years. They were charged with ac-
counting for only about $4,000 in
profits in making income tax returns.
The actual tax evaded for the three
years under investigation-1934, 1885
and 1s36-was placed in the indict-
t,1ent at s2s.249.31.
This marks the first effort of the
Government to collect alleged untaxed
portions of the profits from Washing
tons reputedly huge numbers racket
1t also is the first income tax fraud
case brought here Such cases usually
are prosecuted in Baltimore, where
income taxes for the District are COL
lected The Warning case was based
on . conspiracy. alleged to have been
plotted in Washington.
The indictment followed months of
investigation by the Intelligence Unit
Of the Internal Revenue Bureau.