Evening star., 1952-01-29
Tax Agent Tells
Get.Rich-Quick
Story Of Nelson's
Started on $4,000
And Soon Recouped
Money, Jury Hears

HtiO SVVt NSSV0fS0
Money, Jury Hears
By W. H. shippen
A get-rich-quick partnership In
the numbers racket was described
today at the gambling conspiracy
trial of Charles E. Nelson and IS
co-defendants in District Court.
An Internal Revenue Bureau
agent testified that one OF the four
partners told him Nelson put UP
$4,000 as capital in 1914. soon
received his cash outlay back and
the syndicate operated until 1856
on seH-supporting basis.
Perrin A. Kent, one of the final
Government witnesses, told the
jury he was given this account OF
the financial operations of the
Robert L. Nowland Associates
by Mrs. Mary c. Nowland, one Of
the four partners. The other part
ners were the Nelson's and Mrs,
Nowland's husband.
Donohue Called, Excused.
Earlier Commissioner F. Joseph
Donohue was excused from testi-
flying as defense witness after
being served with a subpoena and
reporting to the witness room. He
was informed that Defense Coun-
sci Charles E. Ford would not re-
quire his presence on the stand.
Mr.. Ford said he took this ac-
ton after Assistant United States
Attorney John w. Fihelly in
formed him that he did not plan
to offer in evidence the statements
made before the grand jury by
two police officers and a former
detective, all among the defend
ants.
Mr.. Kent testified that Mrs.
Nowland told him the syndicate
got its start with $4,000 which
Nelson put up in 1914.
Profit Put at 1917
Within a year, according to pre-
vious tetimony, the four-way
partnership was taking a total of
$55,000 in bets, and by 1946 the
annual take was up to $3.50, 900.
Federal investigators figured the
profit on this gross business was
at least 10 per cent, or well over
$338,000 in IL months.
Mr.. Kent said Mrs. Nowland
told him last August at her resi-
dence In Alexandria that expenses
listed as good will and advertis-
ing" were for the purchase Of
turkeys and cash gifts to the syn
dicate's numbers writer's and pick
up men.
Under cross-examination by
Defense Counsel T. Edward
O'Connell, Mr.. Kent admitted he
did not agree with a previous
witness regarding Nelson's income
tax returns on the sale Of his race
horses.
Called 1t Income.
Previously, Samuel w. Ford, an
other agents of the Internal Reve-
nue. Bureau, had told the jury of
his investigation of the income
tax returns of the Nelson's and
Nowlands.
Mr.. Kent said he advised Mel
son that money he received from
selling his string of race horses
should be reported as income
rather than capital gains" The
latter listing would have been
taxed at lower scale. Mr.. Kent
admitted he had been in dis
agreement with Mr.. Ford when
the latter advised Nelson that he
should list the money received
from the horses as capital gains.
Lawyer Ford, who represents
Inspector Albert I. Bullock, de-
tective Sergt. Robert G. Kirby
and James E. Lowry, a former de-
tective, objected to this line of
questioning into details of the
partnership tax returns and was
upheld by the court.
No Immunity Claimed.
Mr.. Ford had subpoenaed Com
missioner Donohue to show the
officers did not testify voluntarily
before the grand jury.
He had told newsmen he
expected to show. through Mr..
Donohue's- testimony, that the
District Commissioner. in his
weekly broadcasts, had threatened
policemen with Trial Board &C
ton should they decline to answer
questions of grand juries or con-
gressional investigating commit
tees.
May Rest Case Today.
Meanwhile, the Government was
expected to rest its case this aft
ernoon. Mr.. Fihelly told the judge
he plans to call only one more
p witness, after finishing with
Mr.. Kent.
At least a dozen of % witnesses
produced so far by the Govern
ment have testified they worked
for the Nelson's and the Nowlands
in various capacities in the last
40 years.
These have included pickup
men, women adding machine
operators. an Office manager who
made up to $4,000 a year and
persons who said they wrote num-
bers for the syndicate in the Dis
trict.
Witnesses late yesterday in
cluded Mrs. Moody Wilson, col
ored, of the 1900 block of c street
Sc, who said she wrote numbers
for the syndicate for severa'
years up to 1850.