Evening star., 1938-11-19
QuiizofWarriinq
Prober Resumes
On Monday
Discrepancies Slight
In Some Instances
Says Treasury Agent
By CARTER BROOKE JONES.

BY CARTER BROOKE JONES.
With the books Of the Warning
numbers business still under the
judicial searchlight, the income tax
conspiracy case against the three
Warning brothers and two tax ac-
countants was in weekend recess
today.
When the trial is resumed at 10
am. Monday the defense will con-
tinue cross examination of William
H. F. Swain, special agent Of the
Treasury intelligence unit.
At adjournment last night Harry
T. Whelan of counsel for the War
rings had succeeded in eliciting from
the witness an admission that the
discrepancies between the books as
written up by the defendants and
as rechecked by the Governmet were
slight In several cited instances when
the weekly salaries and commissions
were added to the hit" or loss COL
umn each Saturday.
Would you say" Mr.. Whelan de-
manded. that the hit column was
padded?"
II couldn't say" said Mr. Swain.
IT don't know"
He admitted that the discrepan-
cies could have been due to mathe-
matical errors.
81 Errors in One Year.
In his direct examination of the
witness United States Attorney
David A. Pine had brought out that
for one year. 1885, there were 81
errors In the Warning books, as
compared with the figure finally
arrived at by auditors at the In
ternal Revenue Bureau.
Mr.. Swain also declared he had
determined in his investigation of
the books that the item of $3.50 a
week which Emmitt Warning alleg-
edly said he paid for protection"
in 1885 had been added to the "hit"
column. The Government denies
that the item is an allowable deduc-
ton from income tax.
when you first interviewed En-
mitt Warning" Mr.. Whalen asked,
did you warn him that any state
ments he made might be used
against thim?"
mo, I did not" the Federal agent
said.
Wasn't he told that his books
and records would not be turned
over to the police?"
"Yes, we had promised that. He
had been told that they we're only
for the purpose of investigating his
income"
Recalling that Mr.. Swain and two
other agents had visited the War
ring headquarters on K street NV.
twice, counting the cash in the safe,
the defense attorney inquired: Did
you ask Emmitt why the money was
kept in a safe rather than In a
bank?"
mo"
Didn't you think it unusual?"
mot considering the line of busi-
ness he was in"
Did you ask him." Mr.. Wheian
went on. where he got the money
to pay off when he was hit hard two
days in August of 1885. one day for
$4,000 and the following day for
S22.000?"
mo, I didn't"
Previous testimony had brought
out that the Federal men, visiting
Emmitt Warning without announc-
ing their purpose, had asked him to
ftA cofn Nnf1nfin0 ornYHXi.
mately 100000 on one occasion and
$4,000 on another.
Opened Safe Readily.
Did he make any objection to
opening the safe and counting the
money!" Mr.. Whelan demanded.
mo, he didn't"
Didn't he bring you every book
and record you asked for?"
"Yes, think he did"
District Attorney Pine suggested
that Emmitt didn't bring the slips
which he and his brothers were sup
posed to leave in the safe when they
withdrew money. The witness said
he had asked for these, but 'Emmitt
had said he hadn't kept them.
A few of these slips previously
turned in were photographed by the
Government and offered in evidence.
One withdrawal was by Emmitt for
$1,000 and the others were for vary
ing amounts by Emmitt or his
brothers.
Quizzed on Protection.
Justice Bolitha J. Laws 1nterro-
gated Mr.. Swain searchingly re-
garding what Emmitt had said about
paying protection, but the witness
could not recall that the defendant
had made any explanation beyond
saying he had paid $3.50 a week for
this purpose in 1885 and a larger
sum in 1886.
Mr.. Swain said he did not ask
whom Emmitt had paid off" nor
other details of the protection.
The first week Of the trial ended
with the Governments case still
apparently far from complete. It
was indicated the prosecution evi-
dence might not be completed be-
fore the middle of next week.
The three Warning brothers and
the two accountants, Gordon L. r..
Sadur and Henry L. Sherr, are
charged with conspiracy to defraud
the Government of approximately