Evening star., 1951-03-31
The Political Mill
Revenue Bureau Proves
Vigilance in Tax Cases
Brought Measure Of Justice
To Those Who Defied Law

Brought Measure Of Justice
To Those Who Defied Low
By Gould Lincoln
The Senate crime Investigation may
have the effect of bringing more prose-
cutions and heavier penalties for in
come tax evasions by underworld char
acters, gamblers and corrupt politicians.
The Internal Revenue Bureau, with its
trained agents throughout the country,
has been vigilant and has run down tax
evasionS by many Of these individuals.
Not all the cases dug up by these agents,
however. have been prosecuted. That
is the job of the Justice Department.
The penalties are imposed by the courts.
In list of 1873 convictions of alleged
gamblers, racketeerS and others in the
criminal element, involved in the VIC.
lation of the tax laws since August 1.
1945, there were So sentences which did
not include jail, but imposed fines or
probationary periods or both. Some of
the sums OF money involved in the cases
where jail sentences were not imposed
were large dncluding the tax evasions
and the penalties for non-payment).
Also the occupations from which the de-
PENDANTS derived large profits smelled to
high heaven. Some of the penalties i'm.
posed seemed like a slap on the wrist.
even though the defendants also were
compelled to pay taxes they had evaded
and also the penalties attached.
Methods of Prosecution.
A tax-evasion case, after having heen
thoroughly investigated by the internal
Revenue Bureaus agents, who are sleuths
of ability. is considered by the legal staff
OF the bureau. If the information seems
reliable and evidence likely to stand l,n
in court, the case is turned over to the
justice Department, where It is further
mulieo over oy lawyers. Lawyers do not
aIWays agree. and some Of the cases fall
oy tne wayslde. Those that the de-
partment believes will be effective are
turned over to the district attorneys in
the area where the evasion has taken
place. The great majority are prose-
cuted-but there have been cases which
nave progressed slowly, if at all. In
nuence, politics have sometimes PLAYED
tnelr part. as the Senate crime COM
mlttee investigation has shown in other
oJPCo VI CElullQal cases.
Not every district attorney has re.
celVed pat on the back from ton Gov
eminent officials for his diligence IN
prosecuting tax evaderS and political
corruptlon1sts. An outstanding instance
o! tnlS KIND OF thing was Maurice M.
Mllllgan, district attorney for the West
ern olStrlct OF Missouri. Mr.. Millisan
as olstrlct attorney put in jail members
OF tne notorious Pendergast machine for
vote fraud and the late Tom Pendergast
nlmself Tor income tax evasion. Presi-
oent truman, then Senator from Mis-
souri,, cast the sole vote against Mr.. Nil.
ngan, when Mr.. Milligan'S name was be.
lore the Senate for confirmation on a
reappolntment by the late President
Franklin D. Roosevelt. And in 1913.
when Mr.. Milligan's term expired, presi-
dent Truman appointed another man in
his place. That kind of thing might
easily be deterrent.
Samples of Sentences,
Take look at few samples of the
sentences handed out to the tax-evasion
vlolators. A protection man." whose
tax deficiencies and penalties amounted
to around $250,00O was sentenced
to pay a $4,000 fine. In another
case a gambler and bootlegger was found
10 have $293, l46.29 in tax evasions and
penalties. and he was sentenced to pay
fine OF $5.000-in addition, Of course.
TO the payment of the evaded taxes and
penalties-and placed on probation for
nve years. In a third case the operator
OF numbers racket. with evaded taxes
and penalties amounting to more than
$lo9,000, was fined $1,000. sentenced to
two years in Jail on two other counts
and the jail sentences were suspended
and the defendant placed on probation.
The head of an abortion ring-so re-
garded by the police-was found to have
tax deficiency of more than $4,000.
He was sentenced to one year in Jail and
fines amounting to $4,000.
BY no means. however, are all the
sentences imposed light or inadequate.
James " Bove. a union racketeer, who
was indicted along with two other per-
sons for tax evasionS and penalties total
ing more than a million dollars, was
sentenced to five years imprisonment
and fined $4,000.
The Internal Revenue Bureau has
been strong arm to help bring to
some measure of justice mobsters and
racketeers and corrupt politicians who
otherwise have defied the laws.