Evening star., 1951-05-01


, the first to receive copies of
epOrt. The Senator's secretary,
big package Of the documents
Star staff Photo.
the gamblers. gangsters and rack
eteers who are continually f1out-
ing them. Violation should be
made a felony.
Probe Hampered by Failure
OF Criminals to Keep Records
The committee has been con-
hampered in the course
Of its inquiry into the activities of
known criminals and their politi-
cal and official allies. by the fail
ure of these individuals to keep
and maintain books and records
Of their income and expenses.
Income tax returns in most
instances merely give gross figures
of income and expenses without
of the nature of these
While honest businessmen COM
ply with this regulation. hoodlums,
venal officials and some politicians
with underworld affiliations, do
not. The committee feels
the obligation to keep adequate
books and records of account
should bind not only honest busi-
nessmen but also those who profit
from crime. Willful failure to
comply with this obligation should
subject the offender to prosecu-
ton and punishment. At present
such failure is misdemeanor.
The law should be amended to
make it felony.
VI. Gambling casinos should be
required to maintain daily rec
ords of money won and lost to
be filed with the Bureau of Inter-
nal Revenue. They also should be
required to maintain such addi-
tional records as shall be pre-
scribed by the bureau. officials
Of the Bureau of Internal Rev.
enue should have access to the
premises of gambling casinos and
to their books and records at all
times. Where the casino is op-
Grating illegally, in addition to
the aforementioned obligations,
the operators of the casino should
be required to keep records of all
bets and wagers.
The cash returns from gambling
casinos are fantastic in amount,
There is also, at the present time,
no way in which the tax returns
filed with the Bureau of Internal
Revenue by the proprietors OF
these casinos can be adequately
checked. The committee feels
that one way of placing gambling
casinos under control is to require
them to keep daily returns to be
filed with the Bureau of Internal
Revnue and maintain prescribed
books and records.
In order to maintain even q
closer check upon the operations
of the illegal gambling casinos
the committee recommends that
such casinos be compelled to keer
a record of all wagering and bet
ting transactions which take place
within its walls
Might Result in Putting
Casinos Out of Business
The committee is we'll aware
that these provisions may we'll put
illegal gambling casinos out OF
business.
VII. The law and the regula-
tions of the Bureau of Internal
Revenue should be amended so
that no wagering losses, expenses
or disbursements of any kind, in
cluding salaries, rent, protection
money, ETC., incurred in or as a
resultAsf illegal gambling shall be
deductible for income-tax pur-
poses.
Under present income tax law
and regulations, criminals and
racketeers in computing their in
comes for tax purposes are per-
mitted to deduct from their gross
incomes the operating expenses
and wagering losses of their illegit-
innate gambling enterprises.
In the opinion of the committee,
this is not only incongruous but
highly undesirable.
If organized professional gam
bling is to be stopped by. any
Federal enactment. this recon-
mendation is best calculated to dc
VIII. The transmission of gam
bling information across State
lines by telegraph. telephone, radio
television, or other means of con-
munication of communication IA
cility should be regulated SO as to
outlaw any service devoted to a
substantial extent to providing in
formation used in illegal gambling