Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-07-25
u. 5. PLANNING
.Appea|inRu|ing
On Gaming Tax
Case Dismissed
As Violation of
Fifth Amendment

The United States Attorneys
Office is considering a swift APP
peal of the Municipal Court de-
cision which yesterday held the
Federal gambling tax stamp act
to violate the fifth amendment |
when applied in the District.
Judge Thomas C. Scalley, in
diSmiSSing tax stamp case, adj
mitted the law is constitutional
when applied to the States but |
declared that it forces Washing
ton gamblers to incriminate
themselves.
Laws enacted by Congress to
deal with District crime, the jur-
iSt pointed out, are Federal in
nature. He added that there is
no general Federal antigambling
law and therefore, the tax act
could be applied to the States
regardless of their local gam
bling laws.
Reason for Ruling.
The District, however, is gov
erned by the Congress andOjhere-
fore, the tax stamp act. which
requires discriminating signed
statements, is a violation of the
fifth amendment, the judge de-
clared.
Judge Scalley then dismissed
the case against Frank Lewis, 81,
Of the first block Of DeFrees
street NV, who was charged
with failing to register under the
act and failing to purchase the
required $50 tax stamp.
Sources in the United States
Attorneys Office indicated that
the decision would be taken to
the Municipal Court of Appeals
for review. If it is, the way would
be paved for the case to eventu-
ally reach the Supreme Court.
Last March the Supreme
Court ruled the tax stamp act
was constitutional when applied
to the States. The high court,
however, did not comment on the
applicability of the law to the
District.
so Convictions Here.
To date, some SO convictions
here under the tax stamp law
have been made. A number Of
those may be upset if the higher
courts should uphold Judge
Scalley'S opinion.
However, only those persons
who did not plead guilty to the
charge and who noted exceptions
to their convictions would be
eligible to have their convictions
over-ruled.
Should yesterdays decision be |
upheld, it would also mean that |
the large, loosely knit District |
gambling Syndicates would be
free from Federal harassment.
The job of enforcing the local |
gambling statutes would be left |
up to the Metropolitan Police
Department alone.
Even should the law be up
held by the higher courts, it is
not expected to act as a large
deterrent to gamblers. So far,
only the smaller bookies and
numbers writer's have been pros
secuted.
Judge Scalley, in his 23-page
decision, granted a motion to
dismiss the charge against Lewis
after 1t was filed by defense
attorneys Myron G. Enrich and
Walter Gallagher.
discriminating Answers.
The jurist declared "this de-
PENDANT could not pay the tax
and file return without giving
answers which would tend to
incriminate him :"
He pointed out that in every
instance in the pas congress
Sional legislation has required
that a tax be paid on a given
occupation there has also been
attached freedom from Federal
prosecution for that occupation.
In this instance, however, the
Judge said Lewis was in effect
told he must register and pay
the $50 tax and at the same
time is not entitled or licensed"
to engage in the taxable activ-
1tieS-in this instance, gambling.
ut is thus observed" the
opinion read, that the con-
greSSional intention was that in
formation demanded by the
registration form must be
given
II believe the information re-
quired calls for answers that this
defendant could reasonably fear
would incriminate or tend to
incriminate him of a violation
OF Federal law. This is all that
is required to bring into effect
the Fifth Amendment"
Questions Act.
Judge Scalley declared there
is serious question as to wheth-
er or not the tax stamp act is
a penalty in the guiSe of a reve-
INCREASING measure.
He said that in the present
case evidence of the commits
sion of crime is called for be-
fore the tax becomes owing and
DUE" and that this makes the
law penal measure rather than
tax measure.
In conclusion, Judge Scalley
noted that Il wish to re-empha-
size my strong and always abid-
ing desire to afford the privilege