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    "label": "1931 Scrapbook",
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    "id": "160919119",
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    "contentType": "document",
    "title": "1931 Scrapbook",
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    "coverageEndDate": {
        "logicalDate": "1931-12-31",
        "year": 1931
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        "logicalDate": "1931-01-01",
        "year": 1931
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{
    "seq": 57,
    "pageIndex": 0,
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    "ocrText": "g\nINCOME TAX PROSECUTIONS HIT\nHARD BLOWS AT RACKETEERING\nnew york bity imles april\nHaving Won Success in Chicago, the Federal Forces Have Moved\nwith Fresh\nOn New York to Conduct Investigations in This City\nfrom victories won in Chica- because they demonstrate that the that he had evaded payment of about\ngo, where indictments and convic-\nculprit is not immune to the law.\n$300,000 in income taxes, interest and\ntions have been obtained against\nDiscussing the convictions of Ralph\npenalties.\nracketeers who failed to report their\nCapone and Jake Guzik, he has said:\nGovernment investigators and\nplunder on their income taxes, the\n'Ralph Capone and Jake Guzik can\nprosecutors had done a thorough job\nFederal authorities have launched a\nnever again be leaders in organized\nof preparing evidence. For example,\nsimilar campaign in New York. Co-\ncrime. Their immunity-or gang-\nwhen defense lawyers attempted to\noperating with United States Attor-\ndom's belief in their immunity-is\npaint Capone as a gambler who had\nneys, investigators from the Internal\ngone. That was their stock in trade.\nlost heavily in operating a handbook,\nRevenue Bureau are now looking into\nThey will not be able to count on\nthe prosecution called saloon-keepers\nthe financial operations of a number\nold loyalties when they come out of\nto testify that they had paid him $55\nof New York characters, and the\nprison.\"\na barrel for quantities of beer.\nfirst indictments have been handed\nIn addition to hurting gang morale,\nThe verdict, given April 26, 1930,\ndown. The following article describes\nthis demonstration of the lack of\nwas guilty. In June Judge Wilker-\nthe results of the Chicago campaign\nimmunity of gang chieftains un-\nson imposed a sentence of three years\nwhich is being repeated in New\nquestionably has another important\nYork.\nin the Leavenworth penitentiary and\neffect: it strengthens public morale.\nfine of $10,000.\nBy FRANK A. SMOTHERS.\nIt makes honest citizens feel that\nthere is some use, after all, in tak-\nThus was brought to a successful\nCHICAGO.\ning a stand against organized crim-\nissue the first of the income tax\nHICAGO is beginning to realize\ninals.\nfraud cases against major gangsters,\nthat it has a strong weapon\nand action on the remaining cases\nagainst its racketeers and\nIn person Mr. Johnson, the main-\ngangsters, who for years have\nspring of the drive, is not the prose-\nfollowed promptly. In July Assessor\ncutor standardized in detective\nOliver was convicted. His sentence\nseemed immune from effective at\ncalls for eighteen months at Leaven-\ntack by the authorities. This weapon\nworth and payment of a $7,500 fine.\nis the Federal law, as enforced by\nSpecial public interest attached to his\nGeorge E. Q. Johnson, United States\ncase during the trial, when evidence\nDistrict Attorney for the Northern\nwas introduced that he had made\nDistrict of Illinois.\nlarge sums in \"adjusting\" taxes.\nAs the years passed, with the city's\nAfter the conviction, the greatest\ngang leaders going unpunished, Chi-\npressure was exerted in the Federal\ncago had grown cynical concerning\nBuilding in an attempt to win pro-\nthe ability of State and local officers\nbation for the politician. But the\n1931 28\nof the law to cope with them. But\npressure was futile.\nfor more than a year the city -has\nbeen acquiring a different impres-\nNitti Pleads Guilty.\nFrom\nsion regarding Federal law and its\nNext to fall under T Teral convic-\nenforcement, and now that impres-\ntion was Nitti, the Capone \"en-\nSun-Telegraph\nsion is rapidly changing to assur-\nforcer,\" one of the most ruthless\nPITTSBURGH, PA.\nance.\ngangsters Chicago has known. The\nFederal Accomplishments.\nbest he could do when he found him-\nThe reputation of the Federal\nself enmeshed in trouble with the\ngovernment was to plead guilty to\nclint 4-19-21\nweapon rests not upon ballyhoo, but\nupon facts, among which are these\ncharges of evading payment of $158,-\nA jail sentence for Scarface Al\n823 in income taxes. Sentenced last\nCapone, probably the most power-\nDecember, he is now serving an\nful gang entrepreneur in America's\n(ghteen-month term in Leaven-\n7TH CANGSTER\nhistory, who 16 designated as Num-\nworth. Also, he was fined $10,000.\nber One in Chicago's list of 'pub-\nlic\nenemies.\nBefore December was over, Jake\nA pententiary sentence for Ralph\nGuzik had been sentenced. A jury\nCapone, his brother, Number Two\nin the list.\nhad found him guilty on charges of\nSENTENGED IN\nAssociated Press Photo.\nA penitentiary sentence for\neyading the income tax laws. Ac-\nFrank Nitti, known as the en-\nRalph J. Capone.\ncording to the prosecution, he had\nforcer.' in token of his place as\nfailed to pay a tax amounting to\nchief of the strong-arm department\nby which Capone's edicts have been\nstories. A friendly man, with rather\nnore than $200,000 on a total income\nCHICAGO COURT\nenforced.\nsoft, wavy hair and a quiet, pleasant\nestimated at more than $1,000,000 for\nA penitentiary sentence for Jake\nmanner, he might be thought a cul-\n1927, 1928 and 1929. Judge Wood-\nGuzik, also a headliner in the\ntured minister; and, indeed, he is a\nvard sentenced him to serve five\nCapone organization, and a Fed-\neral indictment against his brother\nchurch worker of long standing.\nyears at Leavenworth and to pay\nBrother of Capone Manager\nSam.\nIn dealing with gangsters, he has\nfine.\nGets Year in Prison and\nPleas of guilty to Federal charges\nshown that his quietness is of a very\nfrom Terry Druggan and Frankie\nState Representative O'Brien, hav-\n$2,500 Fine in Tax Case.\nLake, pioneers of the large-scale\ncool kind. This coolness was well\ning been convicted by a jury in De-\nliquor racket of the Middle West\nillustrated in a parley which he, with\ncamber, was sentenced early in Janu-\noften designated as the 'squires,'\ntwo of his aides, had with Ralph\nary to serve eighteen months and\nCHICAGO, April (INS,)\nbecause they indulge in country\nestate life.\nCapone before that self-confident\npay a $6,000 fine. It was shown dur-\nWith the conviction Sam\nman realized that he was in the in-\nThe Federal arm, in its attack upon\ning the trial that Timothy J. Crowe,\nGuzick, George E. Q. Johnson,\ncome tax toils. Capone had been\noutstanding persons, has not confined\nthen president of the Sanitary Dis-\nUnited States district attorney to-\nbrought before the prosecutor, so\nitself to striking at gangsters. Pow-\ntrict of Chicago in its famous period\nthe gangster thought, in connection\nof \"whoopee\" and wild sper ing,\nday chalked up seven scores/i his\nerful Chicago politicians have felt\nwith prohibition liquor matters, and\nwar his happener\n-\nincome-tax assault on Chicago's\nhe was not much concerned\nso-called politico-criminal al-\nAssessor of Cook County, and State\nthese matters. He was affable; he\nRepresentative Lawrence C. 'Brien\nCrowe kept his friend's trucks bisy\nliance.\nstarted out by playing the part of\nare under Federal sentence, and a\nat Sanitary District expense. Acc rd-\nGuzick, brother of Jack, who is\na captain of industry who could af-\nFederal indictment stands against\ning to a government agent named\nbusiness manager of Al Capone's\nford to be generous, with Federal\nChristian P. Paschen, Building Com-\nConverse, 'Brien had enjoyed a\nenterprises, was sentenced to\nofficials. Having asked whether he\ngross income of $436,000 in three\nmissioner in the Cabinet of former\nLeavenworth yesterday for a year\nmight smoke, and having been in-\nMayor William Hale Thompson.\nyears; yet he had not thought it\nand a day and was fined $2,500.\nformed that he might, he laid a\nnecessary to file tax returns.\nIncome Tax Charges.\nhandful of cigars on the table. A\nGuzick, who pleaded guilty to\nsensitive soul might have been hurt\nDruggan and Lake,\ndodging payment on a $380,000 in-\nIn all the foregoing cases except-\nby the fact that nobody took\na\nDruggan and Lake, in January,\ncome for three years, became the\ning that of Scarface Al, the charge\ncigar, but seemingly Ralph was not.\npleaded guilty to the income tax\nninth defendant and the seventh\nhas been substantially the same: vio-\nlation of the income tax laws.\nHe was a big fellow, and he talked\ncharges against them, but they stipu-\ngangster to feel the lash of the\nàs such. He saw no harm in boast-\nlated that they could change their\nCapone's present sentence, a short\nfederal prosecutor.\ning of his financial prosperity when\npleas on certain points in the event\none, fixed at six months, is for con-\nOthers who have been con-\nquestions were put to him touching\nthe higher court overruled the trial\ntempt of court. But it is reported\nupon it. As the conversation pro-\ncourt on similar points in the \"Brien\nvicted, all listed as \"public\nthat the government is also prepar-\nand Ralph Capone cases. Hence, the\nenemies,\" except Guzick, include\ning an income tax case against him,\nceeded, he revealed to the quiet,\nstudious District Attorney that he\ndecisions on the O'Brien and Capone\nAl Capone, head man, sentenced\nwhich, if successful, would send him\nto 6 months in jail for contempt\nhad bank accounts under five dif-\nappeals are awaited with special in-\nto prison for a considerably longer\nof Federal Court; Jack Guzick,\ntime,\nferent aliases in the Pinkert State\nterest. Even in the event of rulings\nsentenced to 5 years and a day\nBank of Cicero, Ill., the Chicago\nagainst the government in those\nin prison and fined $17,500 for in-\nThe attack by the government is\nsuburb which has gained interna-\ncases, however, \"the squires,\" it is\ncome tax evasion; Ralph Capone,\na flank attack, as District Attorney\ntional notoriety for its liquor, gam-\nunderstood, will have to serve jail\nbrother of Al, sentenced to 3 years\nJohnson describes it It has struck,\nbling and vice activities.\nsentences of two years each. And if\nand fined $10,000 for tax evasion:\nas it were, from the side, a vulner-\nThe examination over, Capone was\nthe government is sustained in the\nTerry Druggan, former beer baron.\nable side. Gangsters and politicians\nstill confident. \"You don't have any-\nCapone and o Brien matters, Drug-\npleaded guilty to tax evasion, sen-\nhave found that it is not so easy to\nthing on me,\" he said.\ngan and Lake will be liable to sen-\ntence awaiting outcome of Ralph\ncover up income tax violations as\n\"Only enough to send you to the\ntences as high as twenty years or\nCapone appeal; Frank Nitti, Ca-\ncertain other matters.\npone captain, now serving an 18-\npenitentiary,\" replied Mr. Johnson.\nmore, and fines of $50,000.\nmonth term for tax evasion\nThe sentences provided so far,\nIn the trial, held before a jury in\nSuch has been the progress of the\nFrankie Lake, Druggan's former\nranging from eighteen months to five\nthe court of Federal Judge James H.\nincome tax cases to date. There is\npartner, also pleaded guilty and\nyears in prison, accompanied by\nWilkerson, testimony revealed that\nno question that the Federal drive\nsentence awaiting Capone appeal;\nlarge finez t're sufficiently heavy to\nbetween 1924 and 1929 Capone had de-\nalready has greatly impaired Chicago\nTony (Mops) Volpe, Capone\nhave proved uncomfortable to those\nposited about $1,871,000 at the Cicero\nracketeering business. And the drive\nhenchman, facing deportation to\nwho received them. To be sure, only\nbank. On that basis, it was contended\nis by no means over.\nItaly for illegal entry.\nNitti has actually atarted serving\nSignificance is attached to the\ntime. Appeals are pending in the\nguilty pleas of the gangsters in\n(\nother cases in which convictions have\nthat Johnson is batting a thou-\nsand in the prosecuting league\nbeen obtained. But little if any hope\nThey realize the inevitable, it is\nis held out for the appeals. Like-\nsaid, therefore are willing to 'cop\nwise the indictments are taken with\na plea.\ngreat seriousness. Mr. Johnson does\nnot prosecute until he is convinced\non the basis of the evidence"
}