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1931 51 CHICAGO ILL TIMES SATURDAY, JUNE 6, 1931, U. S. RUSHES CAPONE TO TRIAL 1931 51 LORD OF GANGLAND FACES LONG TERM Capone FOR TAX FRAUD That A1 Capone, Chicago's poorest world's fair advertise- ment, get the quickest trial GANGSTER GIVES the members of his brought before the justice, was indi- U S. Dist. $50, 000 BOND IN Q Johnson lose his first indict- frauds, stated TAX FRAUD CASE probability Capone be summer. Federal Judge of six months Interest 6/6/3 jall Accused of Evading pealed, $215,080 Levy. with ernment e. John- son. today that in Aurora and agents com- which has alcohol syndi- named by the local dictment early in by Chief noon which evidence upon of 45 cused him of eva- men sion of income of Jack, Ca- taxes amounting pon is en route to $215 080. Unit- and at Leavenworth ed State Attorney plea of guilty to charges of violation of the George E. Q Johnson, who has JUDGE BARNES won a conviction [TRIBUNE Photo.] against every gangster he has tried for income tax frauds, announced he was ready for the supreme test against Capone, the chief of gang chiefs Capone, on learning that the in dietment had been returned, went di rectly to the office of United States Marshal H. C. w. Laubenheimer, ac companied by his attorneys, Capt William F Waugh and John Goshkin. His ball had been fixed at $50,000. A surety bond had preceded him and it had been examined and approved in the district attorny's of fice. Deputy Marshal Joseph O'Neill, as soon as Capone appeared, served him with bench warrant issued by Federal Judge John P. Barnes, before whom the indictment was returned. Freed Until Arraignment. Capone was taken to the court clerk's office, where he signed the bond, and then before Judge Barnes. who attached his signature, and Ca pone was free so far as the income tar. case is concerned until the day of his arraignment. But Capone is under $5,000 bonds on an'appeal from a six months' jail sentence for con- tempt of court imposed by Federal Judge James H. Wilkerson for ma- lingering when summoned before the federal grand jury more than a year inderal prosecutor the contempt appeal probably would be decided soon and there is a probabil- ity that Capone would be in jail be- fore the income tax indictment is tried. The indictment which was handed to Judge Barnes' clerk by J. Milton Trainer, real estate man and foreman of the grand jury which had spent three months on the Capone investi- gation, contained five felony and two misdemeanor counts. Another indict- ment, returned on March 13 and sup- pressed, contained one felony count relating to Capone's income in 1924 The possible maximum penalty on the six felony and two misdemeanor counts is thirty-two years' imprison- ment and fine of $80.000. Find $1,038,654 Income. The government alleged that Capone owes taxes of $215,080 on a net in- come of $1,038,654 for the years 1924 to 1929, inclusive. The government does not say that this was the total of Capone' income of those six years, but it represents the amount the gov. ernment expects to be able to prove that the chief gangster pocketed. The statement was made that dur- ing those six years Capone filed no income tax return, although it was known that he received vast income due to is monopoli of the booze alky, and beer business of the Chi cago territory his control of the gam- bling rackets and his profits from his string of brothels. Capone had boast ed that he was too smart for the gov. ernment, that he put no money in banks and no money could be traced to him. Gang Power Weakening But, according to government offi- cials, $1,038,654 was traced directly to Capone and therein, it Is said, lies a story indicative of the disintegration of the great organization that had its connections and agencies all over the country and was part of a huge international syndicate that has. en- abled millions of Americans to flout the prohibition laws for twelve :rears. Capone's gang lieutenants have talked to save themselves. govern- ment agents stated. Capone has been pushed around so much his power has waned. United States Attorney Johnson's strategy was said to h- ited in proceeding exhib- (Continued on pa

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    "ocrText": "1931 51\nCHICAGO ILL TIMES\nSATURDAY, JUNE 6, 1931,\nU. S. RUSHES CAPONE TO TRIAL\n1931 51\nLORD OF GANGLAND\nFACES LONG TERM\nCapone\nFOR TAX FRAUD\nThat A1 Capone, Chicago's\npoorest world's fair advertise-\nment, get the quickest trial\nGANGSTER GIVES\nthe members of his\nbrought before the\njustice, was indi-\nU\nS.\nDist.\n$50, 000 BOND IN\nQ\nJohnson\nlose\nhis\nfirst\nindict-\nfrauds,\nstated\nTAX FRAUD CASE\nprobability Capone\nbe summer.\nFederal Judge\nof\nsix\nmonths\nInterest 6/6/3\njall\nAccused of Evading\npealed,\n$215,080 Levy.\nwith\nernment\ne.\nJohn-\nson.\ntoday\nthat\nin\nAurora\nand\nagents\ncom-\nwhich\nhas\nalcohol\nsyndi-\nnamed\nby\nthe\nlocal\ndictment\nearly\nin\nby\nChief\nnoon which\nevidence\nupon\nof\n45\ncused him of eva-\nmen\nsion\nof\nincome\nof\nJack,\nCa-\ntaxes amounting\npon is en route\nto $215 080. Unit-\nand at Leavenworth\ned State Attorney\nplea of guilty to\ncharges of violation of the\nGeorge E. Q\nJohnson, who has\nJUDGE BARNES won a conviction\n[TRIBUNE Photo.] against every\ngangster he has tried for income tax\nfrauds, announced he was ready for\nthe supreme test against Capone, the\nchief of gang chiefs\nCapone, on learning that the in\ndietment had been returned, went di\nrectly to the office of United States\nMarshal H. C. w. Laubenheimer, ac\ncompanied by his attorneys, Capt\nWilliam F Waugh and John\nGoshkin. His ball had been fixed at\n$50,000. A surety bond had preceded\nhim and it had been examined and\napproved in the district attorny's of\nfice. Deputy Marshal Joseph O'Neill,\nas soon as Capone appeared, served\nhim with bench warrant issued by\nFederal Judge John P. Barnes, before\nwhom the indictment was returned.\nFreed Until Arraignment.\nCapone was taken to the court\nclerk's office, where he signed the\nbond, and then before Judge Barnes.\nwho attached his signature, and Ca\npone was free so far as the income\ntar. case is concerned until the day\nof his arraignment. But Capone is\nunder $5,000 bonds on an'appeal from\na six months' jail sentence for con-\ntempt of court imposed by Federal\nJudge James H. Wilkerson for ma-\nlingering when summoned before the\nfederal grand jury more than a year\ninderal prosecutor the\ncontempt appeal probably would be\ndecided soon and there is a probabil-\nity that Capone would be in jail be-\nfore the income tax indictment is\ntried.\nThe indictment which was handed\nto Judge Barnes' clerk by J. Milton\nTrainer, real estate man and foreman\nof the grand jury which had spent\nthree months on the Capone investi-\ngation, contained five felony and two\nmisdemeanor counts. Another indict-\nment, returned on March 13 and sup-\npressed, contained one felony count\nrelating to Capone's income in 1924\nThe possible maximum penalty on the\nsix felony and two misdemeanor\ncounts is thirty-two years' imprison-\nment and fine of $80.000.\nFind $1,038,654 Income.\nThe government alleged that Capone\nowes taxes of $215,080 on a net in-\ncome of $1,038,654 for the years 1924\nto 1929, inclusive. The government\ndoes not say that this was the total\nof Capone' income of those six years,\nbut it represents the amount the gov.\nernment expects to be able to prove\nthat the chief gangster pocketed.\nThe statement was made that dur-\ning those six years Capone filed no\nincome tax return, although it was\nknown that he received vast income\ndue to is monopoli of the booze\nalky, and beer business of the Chi\ncago territory his control of the gam-\nbling rackets and his profits from his\nstring of brothels. Capone had boast\ned that he was too smart for the gov.\nernment, that he put no money in\nbanks and no money could be traced\nto him.\nGang Power Weakening\nBut, according to government offi-\ncials, $1,038,654 was traced directly to\nCapone and therein, it Is said, lies a\nstory indicative of the disintegration\nof the great organization that had\nits connections and agencies all over\nthe country and was part of a huge\ninternational syndicate that has. en-\nabled millions of Americans to flout\nthe prohibition laws for twelve :rears.\nCapone's gang lieutenants have\ntalked to save themselves. govern-\nment agents stated. Capone has\nbeen pushed around so much his\npower\nhas\nwaned.\nUnited States Attorney Johnson's\nstrategy was said to h-\nited in proceeding\nexhib-\n(Continued on pa"
}