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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"
}