Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-11-27
Defense Opens
Tomorrow in
Warning Trial
Tax Case Is Expected
To Go to Jurors by
Tuesday Night
By CARTER BROOKE JONES.

BY CARTER BROOKE JONES.
With the Warning income tax case
expected to 60 to the jury by Tues
day night, defense attorneys to-
morrow in District Court will begin
presenting the evidence with which
they hope to convince the II men
and / woman that the three War;
ring brothers and their tax con-
sultant, Gordon L. r. Sadur, were not
guilty of conspiring to defraud the
Government of taxes on revenue
from the numbers game.
Justice Bolitha j. Laws announced
as the trial was recessed Wednesday
night for the rest of the week that
he would rule tomorrow on defense
motions to strike out certain prose-
cution evidence. His ruling is await
ed with interest by attorneys on
both sides, since some rather novel
legal questions are involved in the
Districts first tax fraud conspiracy
case.
The defense objected particularly
to certain conclusions drawn by H.
Watson Leese, an internal revenue
agent, which he based on his study
of books, records and statements
in the Warning investigation. Coun-
sci for the Warnings and Sadur de-
clared, for one thing, that the esti-
mate of the revenue auditor that
1t cost the three brothers $4,000
apiece for living expenses for each
nf tho 109E 1000
pulled out of the air" There was
no evidence on the point, they pro-
tested, and the figure was set up
arbitrarily as a guess.
Manner of Living Cited.
Mr.. Leese said he based his living
cost estimate on the manner in
which the Warnings were known to
ive-their houses, automobiles and
other factors-but he had figured
the amount by which the Govern
ment allegedly was "shortchanged, -
both with and without the COM
puted expense of upkeep. 1t was a
matter for the jury to determine
how much weight to give the esti-
mated living expense, in the Gov
eminent view. The defense, how
ever, pointed to certain contradic-
tory evidence-for instance, state
ments attributed to Emmitt War;
ring, head of the business, that he
lived modestly, seldom went any
where and wore inexpensive cloth
ing, and to an assertion by Leo
Warning that he might have drawn
as much as 500 a week out of the
safe, but doubted it was more.
Harry T. Whelan and William B.
O'Connell, attorneys for the War
rings, and Leo A. Rover, counsel for
Sadur, moved to strike out all refer
ence to the hypothetical living ex-
penses and also an item of about
$4,000, which the Government COM
puted the Warnings made during the
early part of 1884, when Emmitt
Warning first started his numbers
business and before he began keep
ing books.
Justice Laws allowed all the Gov
eminent evidence to stand tenta-
lively, but indicated he wanted to
study the authorities over the week
end and would make a final ruling
tomorrow.
Brief Testimony Expected.
Indications yesterday were that
defense testimony would be fairly
brief Sadur is expected to take
the stand early in the defense case
and probably will be the most i'm
portant defense witness. Sadur,
who is certified public account
ant and has practiced in tax mat
tiers before the Treasury Depart
ment for many years, will attempt
to refute the conclusions drawn
by the Government. He will make
his own analysis of the Warning
books and records, which the de-
tense has brought into court.
While defense attorneys have not
revealed their plans, observers con-
slider extremely remote the chances
that any of the Warnings will take
the stand.
With the defense admitting the
authenticity of most of the docu-
mentary evidence introduced by the
ACKNOWLEDGEMENTS copies of
the numbers books and records of
purchases which Emmitt Warning
or his agents made-the issue re-
wolves largely around what con-
struction to place on these exhibits
the conclusions to which they
point.
The defense, however, disagrees
violently with the charts drawn up
by Revenue Agent Leese, in which
the basis of the claims made against
the Warnings is set forth. The
attorneys for the brothers and their
tax consultant will contend that the
Government has failed to show a
conspiracy to defraud, and any
errors in the books were honest ones.
Rested Wednesday,.
The Government, whose case is
being prosecuted by United States
Attorney David A. Pine and Assist
ant Attorney John j. Wilson, rested