Evening star., 1938-12-02

charged NTH conspiracy to de.
fraud the Government of some
$4,000 in profit tares on a ST.
100000 numbers business. Tares
claimed copered a period of three
years and case tnpolpes alleged
effort to conceal from taration
$4,000 tDhich Emmitt assertedly
paid for police protcction-dur-
ing one year.
BY CARTER BROOKE JONES.
The Warning income tax fraud
case was submitted to a District
Court jury of l woman and II men
at 11:5e am. today, after a trial
that lasted nearly three weeks.
Justice Bolitha j. Laws charged
the jury after United States attor.
ney David A. Pine, in the closing
argument, urged conviction OF
these racketeers intrenched behind
protected lawlessness" and declared
an acquittal would place lawless-
ness in the saddle"
Justice Laws instructed the Jury
that 1t did not have to pass di-
rectly on whether police protection
money paid by a gambler was de-
ductible from his taxable income.
The Government contended it was
not.
Referring to the item of $4,000 in
alleged protection which the Gov
eminent said was withheld from the
1885 income Of the numbers busi-
ness, Justice Laws said the jury
need pass only on whether the
Warnings tax consultant, Gordon
L. r. Sadur, honestly believed this
an allowable deduction or whether
he tried to conceal it with the mo-
tive of defrauding the Government.
The whole alleged conspiracy, the
court told the jury, was a question
OF the state of minds of the de-
PENDANTS, not whether they paid
sufiicient tax.
The district attorney added:
They ask us why we didn't let
the Warnings pay up their tax? You
would think the Government was
dealing with q Bible class. The de-
fense cited the cases Of business
executives. professional people and
movie actors who were allowed to
adjust large income tax claims. I
know Of cases where the Government
didn't let racketeers pay up to escape
prosecution-that's the difference.
mo doubt the Warnings would
have liked to settle the tax. Then
they'd have reduced tie odds and
made the poor, gullible public pay
more.
Put Police Under Cloud
They already have corrupted one
branch Of our law enforcement
agencies. They didn't have the de-
cency to name the police they were
paying Oh. thus leaving the whole
department under a cloud, when
you and know that by and large
the police are honest"
Discussing the evidence that the
three Warning brothers had done a
s., ,000, 900 numbers business In 1885
but had returned for taxation in
comes Of only approximately $l,868
apiece, the district attorney said:
Was Emmitt Warning conduct
ing an eleemosynary institution for
the benefit Of his clerks, his pick
up men and the police?"
Mr.. Pine cited on the Warning
tax returns the fact that some Of
his clerks who were on salary and
numerous of his pickup men were
earning larger sums that year than
he admitted in his tax returns.
"Can This Gang Go Unwhipped?"
Answering the argument of de-
fense counsel that the Warning
brothers and their tax censultant,
Gordon L. r. Sadur, were tricked
into statements by Federal investi-
gators, Mr.. Pine said he didn't
blame the intelligence unit of the
Internal Revenue Bureau for being
careful how they dealt with this
gang" The prosecutor added:
They were dealing with men
who had made a crooked alliance
with crooked police. And this in
wolves the question of whether this
gang, entrenched behind q barrier
Of protection, can 60 unwhipped of
justice"
The defense, Mr.. Pine cited, had
tried to make out that Emmitt War
ring was a guileless soul who didn' t
know about figures and taxes.
"Emmitt is no fool" the prosecutor
told the jury, anyone who could
build up on shoestring business
that probably was bigger than 80
per cent of the businesses in WASH
ington If you exclude the utilities
and big department stores"
Charging Sadur with an account
ing legerdemain which is better than
pulling q rabbit out of q hat" the
district attorney said the numbers
Arm ought to have been called WAR
ring Bros. & Sadur."
Changes Phony Tax Schedules.
He charged Sadur with presenting
the Revenue Bureau with "phony
doctored tax schedules" and de-
clared it was obvious that the tax
report was trying to get the War
rings out Of trouble and keep their
taxes down at the same time"
In the closing argument for the
defense yesterday afternoon, Leo
A. Rover, attorney for Sadur, con-
tended there was no evidence that
(see WARNING, Page A-14)