Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-02-04
Warning
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truth about the $4,000 or $4,000
you owed Killeen?"
Then, said the witness, Emmitt
said he guessed he did owe Killeen
around $4,000. When it was sug-
gested he make an affidavit to this
effect, Emmitt baked, the witness
said, and never did swear to the
statement.
The defense is seeking to establish
the Killeen loan as added capital
with which Emmitt and his brothers,
Leo and Charles, were enabled to
start their numbers business in 1894.
Such loan would have lessened the
tax liability.
Tells of Protection Payments.
Mr.. Swain testified that at an
interview in the spring of 1887 he
reminded Emmitt that he had said
he paid police protection of $500 in
1884, $1,000 month in 1885 and
about $4,000 a month in 1886 and
these sums would show a heavier
income than the tax returns indi-
Gated. Emmitt, according to the
witness, said he didn't remember
mentioning these sums but If he had
it was true. although he thought
$4,000 a month was more than was
paid in 1886
Charles Warning, when inter-
viewed by Government agents, re-
ferred all inquiries concerning the
profits of the numbers business to
Emmitt, declaring he was the bust
ness man" Mr. Swain said The
witness quoted Charles as saying he
didn't know how much he had with
drawn from the safe at the num-
bers headquarters on K street, that
the three brothers simply drew out
what they needed from time to
time.
While trials customarily are ad-
journed Friday over the week end,
Justice Bolitha j. Laws directed a
morning session today because the
jury of one woman and II men is
being kept in court custody through
out the trial The attorneys ex-
pressed hope that they could speed
the case to a conclusion by the
middle of next week. The previous
trial, which resulted in a hung jury,
lasted nine court days and spread
over three weeks. but that jury was
not locked up between sessions.
Mr. Swain took the stand first late
yesterday and again described his
part in the investigation of the tax
able income of the Warning num-
bers business.
Brought Revised Schedule.
He said Gordon L. R. Sadur, the
public accountant who is on trial
able income of the Warning business
with the three Warning brothers,
came to the intelligence unit
Offices and brought a revised
schedule he had prepared of the
income for 1885. Mr.. Sadur ex-
planned. the agent said, that sl3.-
900 police protection which Emmitt
Warning said he had paid that year
had been taken care of" by lad
justing the win and loss column
totals" Mr. Swain said Mr.. Sadur
added:
But if you want to show it on
the schedule I can add it to the
gross income and then deduct it
from the allowable expenses"
The accountant reached across the
desk and wrote in the figure in red
pencil, Mr.. Swain said.
The witness said he told Mr.. Sa-
dur it could be added to the in
come but not to the expenses. be-
cause protection was not an allow
able deduction. and H. Watson
Leese, a revenue agent, who was
present, cited a ruling by the gen.
eral counsel of the bureau to the
effect that bribery was not deducti-
BILE from taxable income. Mr.. Sadur
expressed surprise at this according
to the witness.
Describes Two Visits.
Mr.. Swain described two visits to
the Warning numbers headquarters,
then located in the $500 block of
K street NV. On both occasions
the money in the safe was counted
with Emmitt Warnings permission.
The Federal agent said the first
count yielded $30.732.50 in denomi-
nations ranging from $50 pennies
to one thousand-d dollar bill, and the
second count, made December 80,
1896, revealed $24 1924 SO.
Mr.. Swain testified that he dis
covered from checking the figures
in the Sadur tax schedule against
those in the Warning books, which
had been surrendered to him for
audit, that the hit" or expense
column had been padded by $3.50
each week for 1885 to make up the
sum allegedly paid out for police