Evening star., 1938-11-21
Warning 1rio's
Pickup Men
Once Quizzed
Cases Were Made Out
Against Runners,
Court Is Told
BY CARTER BROOKE JONES.

The Treasury Departments In
telligence Unit recommended for
prosecution a number of Warning
pickup men," it was revealed TO-
day for the first time in District
Court at the trial of the three War;
ing brothers and two tax account
ants for alleged conspiracy to de-
fraud the government of income
taxes from the numbers business.
This was brought out by William
H. F. Swain, special agent of the
Intelligence Unit, under interroga-
ton by United States Attorney David
A. Pine
He indicated these also we're
leases" for alleged violation of the
income tax laws, though the number
involved and their names we're not
mentioned.
Mr.. Swain had testified that in
connection with his investigation of
the taxable profits from the Warning
numbers business he interviewed a
number of pickup men, or runners,
of whom 55 were listed In the returns
for 1896.
Cases Were Made Out.
But you were interviewing them
for the purpose of making tax cases
against them, not of obtaining in
formation from them concerning the
tax liability of the Warnings" the
prosecutor suggested.
yes"
Did you make any such cases?"
Mr.. Pine asked.
II did"
What became of the cases was not
revealed. No indictments have been
returned, however.
! Continued croSS-eXamination oc-
cupied most of the morning session.
The information about the pickup
men was elected by Mr.. Pine on re-
direct examination.
At one point in the -examina-
ton by Harry T. Whelan, attorney
for the Warnings, Mr.. Swain said
protection money "is one of those
things that are discussed at the in
telligence unit office"
Not Allowable Deduction.
/ lliuiIdCCo llllS SuUJCCI Ildu UCCll
brought up from time TO time in
dealing with the tax returns of
gamblers, and all agents had been
given to understand that bribe
money was not an allowable deduc-
ton.
Emmitt Warning has been quoted
by Mr.. Swain and another Federal
cold hA id q q
protection sums ranging from $400
to 1000 month between 1884 and
the end of 1886.
"Was there some doubt in your
mind as to whether this protection
was deductible item?" Mr.. Whelan
inquired.
! Mr.. Swain said there was no doubt
in his mind that he had seen legal
citations on the subject, though he
could not quote them at the mo-
ment.
Using a blackboard, Mr. Whelan
drew up hypothetical chart of a
days numbers business, in which
he supposed that 1000 customers
wagered 81 each on different num-
ber. Under the system used by the
Warnings, the attorney brought out.
the writer's and pickup men would
have taken $500 of the collections
for this day. One client necessarily
would have hit the lucky number,
collecting $500 for his 81. This
would have left only 500 to the
backer and his salaries and office
expenses would have had to come
out of that.
Tells of Trip to Home.
Frank A. Dawson, another spe-
cial agent of the Intelligence Unit,
told of a trip he made with Mr..
Swain to Emmitt Warnings home
in the 5000 block of Macomb street
NV. Mr.. Dawson said Emmitt
was questioned concerning his liv-
ing expenses, but gave no definite
figures. adding:
Il don't spend much money. I
don't go anywhere. I don't need
much money for myself"
At one of the interviews in the
Intelligence Office, Mr.. Dawson tes-
titled, Emmit. Warning expressed
concern lest the details of his num-
bers business which he was giving
the income tax people would be
turned over to the police, but he
was assured that 'it is not the pol
icy of the Office to give any conf
dental information to the police"
The Government brought out
| tranScriDt of the interview which
two intelligence agents had with
Charles R. (Rags) Warning while he
was in the Atlanta Penitentiary on
May 4, 1887, serving a term for
implication in the O'Brien gang
shooting. The jury was informed.
however, only that the interview
(See WARRING, Page A-4)
| n p A. Ns FIJI