Evening star., 1938-11-17
Huzen
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Warnings numbers books for 1884.
1885 and 1886, explaining the task
he had in trying to compute the
profits from this illicit enterprise.
The authenticity of the books was
not questioned by the defense. but
Mr.. Rover was trying to develop
that the Warnings were cooperative
and did not Intentionally withhold
any source of income.
Emmitt Warning, head of the bus
mess. started keeping books in July
of 1884, the witness said, and the
only way the Internal Revenue Bu-
reau had of checking on his income
that year was by taking the records
from then until December 81.
Began ON Shoestring.'
Emmitt, previously quoted by Mr.
Leese as having declared he went
into the game "on shoestring" and
even had to borrow money to get it
launched, ran up gross play" of
$203,81716 that half year, the wit
ness said.
Hits. however 0osses to lucky GUS
toner's, accounted for $168549.45
during the half year, according to
the Warning books. Salaries and
commissions totaled S16,9O6,15 for
that period.
Mr.. Leese said in going over this
portion of 1884 he found Emmitt
had deducted $500 for fines, pre-
sumably for employees who ran afoul
of the law; $50 for bail bonds and
5000 for lawyers fees.
For that year, tMr. Leese testi-
fled, he found a discrepancy be-
tween the tax which Emmitt paid.
This amounted to something less
than $50 in taxes. the witness said.
The numbers man had reported for
1884 net income of s1O,68528.
United States Attorney David A.
Pine suggested that maybe the jury
didn't understand what play" and
"hits" and other gambling terms
meant.
Il don't know much about it my
self" Mr.. Rover replied.
He then asked the witness if he
understood the way the Warnings
had operated their numbers busi-
ness and Mr.. Leese replied that he
did. adding:
I'm not what you might call an
expert on the numbers business"
Collected S1,335,065.
The jury of one woman and II
men gathered around the books as
they were spread out on the rail of
the jury box. Emmitt Warning.
seated beside his brothers, Leo and
Rags" spread out other books and
went over them, following the testi-
mony closely.
During 1885. the books showed,
according to the witness, the gross
play was $1.335 ,O65.07. During that
year. however. the books revealed
that the brothers lost $l,233, 3,1O7.6O
of their take" to customers who hit
the lucky numbers. Commissions
to pickup men amounted to $780,
OIL SO ard the Office pay roll totaled
$24,2 ,299.13.
Mr.. Leese explained to the jury
what was meant by total play, hits
and other terms used in conducting
a numbers business. In arriving at
the 1885 income, the Federal agent
said, he added in sll, l,106.05 for four
days in which no play at all was
shown on the books. He said he
had computed this by taking the
average of other days, but admitted
he had no personal information
concerning the operations during
those days. Under cross examina-
ton, Mr.. Leese admitted that En-
mitt Warning had filed returns for
each of the years under question
and had paid taxes. The witness
also conceded that the Warnings
had submitted their records and
books to the income tax authorities
without objection when an lnvesti-
CATION of their profits were started
by the intelligence unit.
Warnings Asked Data.
Mr.. Leese testified late yesterday
that he and two agents from the
Intelligence Unit, Treasury Depart
ment, together with Mr.. Sadur.
went to the Warning numbers head
quarters, then located in the $500
block of K street N. w., In the fall