Evening star., 1939-02-02
Lawyer Challenges
Theory Of Warring
Tax Conspiracy
Sudur's Counsel Reserves
Right for Later
Attack on Claim

BACKGROUND
Emmitt, Leo and Charles (Rdgs)
Warning 1Uere indicted last spring
on charges OF conSpiring to de-
fraud Government OF some s2S,-
900 in income tdres from their
numbers business ouer period
OF three gears Gordon L. r.
Sddur, public accountant, 1Dhom
the Warnings retained to make
out their tar returns, also. 1UdS
indicted First trial resulted in
a jury disagreement.
The Governments theory of con-
spiracy in the Warning income tax
fraud case was challenged in District
Court today by Irwin Goldstein.
newly counsel for Gordon
L. r. Sadur, public accountant re-
tanned by the three brothers to pre-
pare tax returns on their numbers
business.
At the close of the opening state
ment by United States Attorney
David A. Pine, Mr.. Goldstein asked
when the alleged conspiracy to de-
fraud the Government started if, as
the prosecutor had told the jury, his
evidence would show that in 1884
there was no partnership among the
Warnings. The defense attorney
pointed to Mr.. Pines admission that
the numbers business may have been
Emmitt Warnings alone in 1884,
that no partnership could be estab-
lished definitely untHI935 and Sadur
admittedly was not engaged as the
Warnings tax adviser until 1886.
Mr.. Pine reminded the defense
that he had promised to show the
association of the three Warnings
was "the closest" from the first. al
though Emmitt had said they did
not enter formal partnership until
January /, 1885,.
Started From Scratch.
The United States attorney told
the jury of one woman and II men
that Emmitt started in the numbers
game from scratch, on shoestring"
about midyear of 1854, and soon
afterward teok in his brothers Leo
and Charles. The three brothers.
the prosecutor said, were bound "by
an illegal enterprise which required
the closest bonds and also by ties
of blood"
Justice Bolitha ]. Laws asked if
1t was not the theory of the Gov
ernment that Leo and Charles con-
spired with Emxlitt in defrauding
the Government of income taxes for
the entire three years, 1884 through
1896, and that Sadur entered the
alleged conspiracy in 1896.
Mr.. Pine said it was, adding, "And
this made Sadur responsible for all
past acts of the conspiracy"
MIR. Goldstein said he wanted to
get the Governments position
straight. He and Leo A. Rover, at
torney for Leo and Charles Warning,
reserved the right to attack the
Governments idea of conspiracy
later on legal grounds. Mr.. Gold
STEMS challenge was based on the
point that it takes more than one |
person to form a conspiracy.
$4,000, 900 in 1885.
Mr.. Pine declared in his opening
statement the Governments evi-
dence would show Emmitt Warning,
who was in effect "the chairman of
the board of this complicated and
vast business" built up from moth
Ing to a gambling industry that |
crossed around 100000 in 1885
the year in which each of the BROTH |
ers filed an individual income tax
return of approximately $1,000. The
evidence will show, he said, that the
income returned was less than
many of the Warning pick up men
and Office employees received that |
year.
Explaining in some detail how the |
numbers game is operated, Mr.. Pine |
said the evidence would show that |
the Warnings were captains of this |
industry" or at least we're in 1886,
the year covered in the indictment. |
He promised to prove that Sadur
''hampered and impeded the Gov
ernment's investigation of the War
rings taxes
The Governments first witnesses
were from the Internal Revenue Of
dces In Baltimore and Washington
and established formal proof of the
returns which the Warnings made
during the three years at issue.
The Government will show, Mr..
Pine told the jury, that the daily
"play" of the Warning numbers busi-
ness amounted to $4,000 in 1885.
Question of Protection.
TIL. district attorney again al
iuded to the alleged police protec-
tion which Emmett Warning was
said to have told Government in
vestigators he was paying-an item
of expense which was much dis
cussed during the first Warning
trial-but never developed beyond
the bare assertions attributed to the
defendant.
Mr.. Pine said the Government
would show Emmett admitted pay
ment of $4,000 to bribe police in
1885, although the Warnings re-
fused to name the policemen"
When this protection item was
called to his attention at the Intel
Igence Unit Office of the Internal
Revenue Bureau, Emmett was told,
Mr.. Pine said, that he must have
operated at loss that year if he
and his brother earned a net income
OF only s5.400, as they claimed.
Emmett said he couldn't account
for the money" Mr.. Pine added.
HE said he knew he didn't operate
at loss, that he made some
money"
With the jury kept in court
custody by order of Justice Laws,
court and attorneys promised to ex-
pedite the retrial as much as pos
sible. The first trial, in which the
Jury failed to agree, spread over