Evening star., 1950-11-19
BY the Associated Press

LOS ANGELES, Nov. 49,
recommendation to remove tn
gag rule which prevents Fedora
income tax agents from report
ing crime violations to local au.
thorities was heard today by th'
Kefauver Senate crime investi
eating subcommittee.
The committee, after trying
without much luck to pry income
information out of gambler
Mickey Cohen, questioned Don.
aid o. Bircher, a retired intelli.
gence unit man of the Bureau Of
Internal Revenue, who made ia,
Investigations of several under.
world figures.
After testifying at the CLOSED
session. Mr.. Bircher told reporters
that before retiring as a group
chief of the intelligence unit last
August 81, he had investigated
among others, Bugsy Siegel, 9
gangleader slain in Beverly Hills
and Tony Cornero Stralla, former
operator of gambling Ships of
Southern California.
Tax Law Curbs Cited.
Mr.. Bircher said he told the
subcommitte that changes in the
income tax laws should be made
so that Federal agents could in
form local law enforcement Off
GERS OF violations. He cited, as ar
example, the fact that If a tax
agent finds druggist is peddline
narcotics he cannot report it.
The former Federal officer also
recommended a law to require a
disallowance Of income tax deduc-
tlons because of any illegal ac-
tivity.
Mr.. Bircher said that when he
retired he went into business
briefly with Harry Sackman. an
accountant for the Guarantee Fl
nance Co., but left him last October
Il. The California Crime Commits
sion has alleged that the finance
company was a front for a wide
spread bookmaking syndicate do
ing a business of 81 million a year.
Mr.. Bircher said he only handled
two accounts while he was associ-
ated from September / to October
81 with Mr.. Sackman and that
both were for legitimate business
men.
Utley and Cohen at Odds.
Another witness questioned to-
day was James Utley, described by
The California Crime Commission
as a man of increasing impor-
tance in the California under
1t was apparent that Utley and
Cohen are not exactly on speaking
,erms. A reporter asked Utley If
ned ever had any business deal
ngS with Cohen. Utley took a
nickel out of his pocket and said:
I've never had that much busi-
ness dealings with Cohen. In fact,
ny conversations with Cohen have
oeen very, very brief"
The subcommittee, critical of the
sheriff's Office in connection with
of the Guarantee FL
nance Co. case, also questioned
Capt. AL Guasti. Capt.
Guasti said he told the subcom-
mittee that he did not write a
letter to Los Angeles police off,
cial telling 1t. James Fisk to "lay
off" the Guarantee Finance Co.
Charges that such a letter was
written were made by the Cali
fornia Crime Commission.
Meeting of Malta Figures Revealed.
The Senate crime probers, who
questioned Sheriff Eugene w.
Biscailuz yesterday, asserted that
his office did nothing about the
Guarantee Finance Co. and that
It's operations were first disclosed
BY the State Crime Commission.
Senator Kefauver said today his
subcommittee is extremely in
in learning more about
q convention of narcotics and
Malta figures" called in Tijuana.
Mex, about the time of the
Kansas City Binaggio- -Gargotta
Sayings.
The Tennessean made the OBJ
after a brief questioning
If Frank Bompensiero, a San
Diego cafe owner as the committee
wound up a three-day stand here.
Bompensiero said he made on
he average of two or three trips
week last spring to a restaurant
n Tijuana, about 10 miles from
San Diego.
Here he said he dined and wined
with such well-known narcotics
figures as: Francisco Cappola,
Kansas City: Sylvester Carolla,
New Orleans: Anthony Lopiparo,
st. Louis; Tano Lococo, Kansas
City; Sebastiano Gallo. San Diego.
Senator Kefauver said there were
others. including Giacomo Barto-
lima and Carlo Sciotarno, whose
home towns were not given.
The Senator said all are re-
puted leaders of the Malta, the
secret Sicilian Crime Society
Senator Kefauver added that all
have either been deported from,
or denied admission to, the United
States because of narcotics con-
victions or links.
This group of narcotics ex-
pelles from all over the country
gathered in the border gambling
and bullflghting city, Senator
Kefauver said, shortly before the
April 5. 1850. slayings of Charles
Binaggio, Kansas City Northside
Democratic boss, and his strong
arm man, Charles Gargotta, ar
ex-convict and known as a merci-
less enforcer of BiNaggio's poll.
tical decisions.
The two were slain in BiNag.
gio's political club rooms.
I'VE are extremely interested ir
why these Malta and narcotics