The Piqua Daily Call June 26 1931 Capone Million in Bank

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The Piqua Daily Call June 26 1931 Capone Million in Bank - THET PIQUA DAILY CALK FRIDAY, JUNE 26, 1931...
THET PIQUA DAILY CALK FRIDAY, JUNE 26, 1931 Chance Discovery of $500 Slot Machine Check Three Years Ago Led to Uncovering of Capone Gang's Millions in Chicago Banks THE MEN WHO GOT THE. EVIDENCE of huge Income tax fraud by Al Capone are shown here. Chief Irey, of Washington, heads tho secret service of the TJ. $," Bureau of Internal Revenue; Division Chief Madden, of Cliicogo, Is In charge In that area; Special Agent Wilson Is an ace Investigator. Investigator. They aro - shown with U. 8. District Attorney (icorge E. Q. Johnson of Chicago, to whom they turned over their evidence lor prosecution. A M EDITOR'S NOTE: This Is the I mira tu iuut exclusive siurjes uu "How They Got Al Capone," who laces sentence, at Chicago on June 30, to a federal penitentiary. Previous stories have ' told ' how Capone Is now insolvent as the result result of business depression" and federal prosecution of his gang, and of U. S. 'District Attorney George E. Q. Johnson, their ne - By ItOBEttT TALLEY NEA Service Writer (Copyright,' 1031, NEA Service, Inc.) Chicago, June 26 The business depression which reduced the demand demand for Al Capone's liquor, gambling gambling and vice may be responsible for the gang leader's Insolvency to - y, but he owes his approaching nltentiary sentence to a small group of persistent men who worked worked nearly four years to get him behind behind the bars. The "Intelligence unit" of the U. internal Revenue Bureau is pro bably the' least known of Uncle anis investigating agencies. It hunts Income tax dodgers quietly, sticks with a given Job year after year, works behind the scenes, gets Had Awful Bearing Down Pains I I I B; Bj Si i H Kyj. 1QC . What One $500 Slot Machine Check Turned Up After Three Years. The extent of gangland's financial operations in Chicago and the part played , by the gangsters mentioned in this story is indicated indicated by these figures, taken from federal court records at Chicago. Chicago. These Incomes are for three years in each case. The government government does not contend that the:e figures are complete; they represent represent merely the amounts the government was ab'.e to prove. Three - year income. Source Ralph Capone 51,811,000 Beer Frank Guilk 1,040,000 Gambling Frank Nltti 700,000 Alcohol Sam Guzlk 310,000 Slot machines . All these meh were Al Capone's lieutenants. How much of the money they collected eventually went to the "Big Shot" himself? They wouldn't tell, preferring to go to the penitentiary instead. The government was getting ready to show what Al Capone got when he suddenly pleaded guilty and thus evaded a trial. was in an awful condition. I hid bearing down pains and hid to lie down a great deal. I read what other women had to say about Lydia E, Pinkham'i .Vegeuble. Compound. "Alter taking the first bottle of your wonderful ncdicine l felt better right away. My pain is goae and the color is coming backj "Every day I am getting stronger. I will answer all letters asking about this medicine " Mrs. Gerald Gerald A. Ritchey, 1200 Johnson Ave, Portage, Pennsylvania. glory, wants none. In fact, this i is probably the first time you have ever seen its name in a newspaper. Therefore, it is order, to ten mcthlne about this. little known but highly efficient secret service organization. It works under the direction of David Burnet. - U. B. commissioner of Internal revenue at Washington. Its chief Is Elmer h. Irey, a veteran. Investigator' with many lamous cases ro its creuu.. Heading the Chicago division, which comprises seven states, is A. p. Madden, division chief. An ace among its special agents is Frank J. Wilson of Washington. Its men arc not detectives and do not claim to be. Mostly, they are expert accountants and lawyers. They know little about guns and nothing about disguises, but they do know an awful lot about bank accounts and financial transactions. Give one of them a few days nno he can possibly tell you more about your financial affairs than you know yourself. They worked three and one - half vears to get the goods on Al Capone, and In. doing so they assisted in the financial wrecking of his gang by sending: two of his chief lieutenants to the penitentiary ar.d getting several several mare started well on the road there. Frank Nltti, Capone gang treasurer and alcohol king, and Sani Guzlk, its slot machine and vice C7ar, are in Leavenworth prison prison now for trying to beat the income income tax law. Ralph Capone. Al's brother and chief of the beer divis ion, is under sentence oE three years but has appealed. Jack Guzik, Capone's' Capone's' business manager and head of the ganmling syndicate, Is like wise under sentence, Dur nas appealed. appealed. There are others, too, but they don't figure In this story. The trail that finally led to Al Capone himself began late In 1927, One of the Income Tax Bureau's agents found that Ralph Capone had not filed returns for 1922, 1923, 1924 or 1925. He suggested to Ralph that he had better file. Ralph filed, but paid no tax, insisting insisting that he was financially unable. unable. Pressed, he offered $1,000 as a compromise. He represented that he was insolvent, or virtually so, ana that' his only holdings amounted to half interest In race horses of doubtful value. $500 Slot Machine I Check Gives First Clew . ' - In January, 1928, the Intelligence agents began to investigate his abil ity to pay nis taxes, penalties ana interest chaTges for the lour years. Somewhere along the line the investigators investigators chanced upon a $500 check drawn by a South Side man whom they know to be interested in a slot machine racket, wno got, it? Bank accounts were quietly analyzed and It was found that this check had been deposited in a bank at Cicero (Chicago suburb and Capone stronghold) to the credit of one "James Carson." Tracing the "James Carson" account account the agents made an amazing discovery. They found that several years before Ralph Capone had opened an account in this bank under under his own name, and had then opened and closed six successive accounts accounts under various abases, dur ing which time $2,000,000 passed through these several accounts This discovery wasn t easy. The bank officials said they didnt.knov of any connections between the va rious accounts ana tnereiorc coma of little aid. Moreover, the bank officials were not acquainted with James Carson or any of the others because, as they said, these customers had never come to the bank. They always cent the signa ture cards out to them, it was explained, explained, and deposits and withdrawals withdrawals were made by representatives. representatives. The canceled checks had been Teturned to the customer long ago. There seemed to be no" trail to follow. Slow Comparison of Accounts Links Them - But this didn't stump the Investigators. Investigators. By tediously checking the amounts of withdrawals and comparing comparing these amounts with simultaneous simultaneous deposits to other accounts and finding people who got various checks, the investigators finally. tied Ralph to every one of these accounts. accounts. Where the amounts wer in round numbers it was hard, but where odd amounts were involved comparison was easier. The govern - lie Fresh Callies .....9c Sliced Pork 13c Loin Chops 20c 16c Spring Lamb Stew . . . . ; 11c Roast 15c BOILED HAM Machine Sliced 33c VEAL Pocket 10c Roast . 13c Chops 15c JOWL SMOKED BACON PICNICS lie 14c Hamburger 3 lbs. 23c SPARE NECKBONES RIBS I 6 LBS. j L. 25c I 25c STEAK J Boneless 15c Swiss 20c Pork Liver 8c Hearts, beef, pork 8c SLICED CREAM BACON CHEESE 19c 18c ment then Droduce. testified Ralph signed checks By these various aliases In their presence, presence, Moreover, handwriting ex perts, Identified the various signature signature cards as having been.slgned by the same man. Turning .next to the deposits made to these, accounts, the agents traced these checks back to saloon keepers who had bought beer from Ralph. They even - produced saloon keepers who testified to this on the witness stand: Some of them were payroll checks that saloon keepers had cashed for their customers, Remittance sheets of the bank showed checks sent to other banks for collection. Though details may vary, everv bank keeps such ord of every check. For six weeks six men did nothing else but trace literally thousands upon thousands of old checks. Bales or dusty remittance remittance sheets - and other bank records, records, long stored In warehouses, were taken out and scanned. Ralph Capone Trail Leads to Guzlk Account In the end .they got .what - they wanted. The trall.of the Ralph Capone Capone checks led to Jack Guzik's accounts accounts in other Chicago' banks - ac - counts that represented yearly transactions running Into hundreds of thousands of dollars. Gangdom being linked together. some means best known to themselves, the agents found Fred Reese, Guzik's financial helper, in St. Louis and brought him back here. Reese testified he,. at vansvs times, had purchased $25O,0DO worth of cashiers ' checks with gang profits profits from gambling lr5uses. Practically Practically all of these were traced to Gu zlk, just as Heese said they could be. Guzlk, trying to be shrewd, had turned in ' his money and bought cashier's .checks, but he was too dumb to know that cashier's checks leave the clearest trail of all. The Capone gang's Hawthorne dog track' was paying huge profits In one year it altually paid a 300 per cent cash dividend. These divi dend checks were traced and some found deposited to the account of a Dr. David B. Owens in a certain bank. Strangely enough, an iden tical sum of money, had been withdrawn withdrawn from Dr. Owens' account the next day. Strangely, too, an exact ly similar amount had been deposited deposited to Guzik's credit in another Chi:ago bank the following day. On the stand, Dr. Owens' admitted that the stock held in his name really belonged to Guzik. ' The trail led next to the accounts of Sam Guzik, Jack's brother. Sam was hiding behind aliases, too, and dabbling with various brokerage houses, but again the careful checking checking of accounts nailed its man. Sam pleaded guilty. Nittl, Gang Treasurer, Is Finally Nailed On and on the trail led to Frank Nltti and his transactions, as it was eventually ascertained, of $700,000 to $800,000 in two years. But Nittl had a different system; he didn't deposit the checks he collected, but would merely leave them at the bank to he cleared, call back again after they had been cleared and get the cash. It looked like Nittl hadn't left much of a trail. But investigators who had been trained as expert accountants knew better. They knew that, every bank keeps a record of out clearings showing where cheeks sent to it for collection went when they went home. Tedious tracing followed these checks back to the alcohol buyers and others whence they came. Nitti soon found it advisable to enter a plea of guilty and take 18 'months in Leavenworth, where he is now. Trail at Last Leads, - To "Big Shot" Himself On and on the trail led, through a maze of bank records of one sort or another. Weeks and months had gone by since the government agents had stumbled on that first 55O0 slot machine check, that led its devious path to Ralph Capone, otherwise "James CaTson," but al ways the object was the same. Higher up was the man who was yet 'to be got the "Big Fellow" himself. The other day the Internal Reve - ic Bureau's men found themselves ready. At last they had the long - sought missing link. They struck. The long - awaited income tax in dictments against Al - Capone himself himself were returned. A few days later Capone came into court and pleaded guilty. you may guess what that miss ing link was. Until Capone Is actually actually behind the bars at Leavenworth Leavenworth penitentiary, these shrewd Investigators will not reveal it. Specifically, Al was charged with 'failure to file, failure to pay, at tempt to defeat and evade" income taxes for the years 1924, 1925, 8, and lszg on an Income totaling $1,038,653.69. The govern ment says it can prove that he evaded a tax of $215,080.48, which now with the 50 per cent penalty for fraud and lnferest charges - amounts to $400,000. They say they can prove this much income in court; there may bo much more. Others of the Income (ax burn's burn's secret service who aided in getting the goods on Al Capone were: Spcciu Agents N. E. Tessem and Clarence Converse of Chicago: Archie Me;'tln of Kansas City; U. S. Revenue Agents Wcstrich and Claggett of Brooklyn, and William Hcdglns, Chicago revenue agent. Tho trouble with young mcrt who yearn to be In other people's shoes Is that . they are not so anxious to follow In their footsteps. ' This generation, remarks the office office sage.. Is distinguished by lt hustle; the past generation, by lt bustle, BRIGHT BOY TEACHER: What happened in 1483? PUPIL: Luther was bom. TEACHER: Quite right. Ar.d what happened in 1847? PUPIL (after a long pause) : Luther Luther was four years old. Tit - Bits. FALSE ALARM A false nlarm from Box 73, near the Ohio Marble company at..l0:45 o'clock last night broke the monotony monotony of heat and inactivity for firemen. Insure With J. Hen Wilkinson Co Joe Saum 531 N. Main St. Open Evenings and Sunday Morning Soup Beans, hand picked 5 hs. ......... .25c Water MelonB, round New Potatoes, first quality, peck . . . . . , . . 29c Boiled Ham, machine sliced, lb 35c Bananas, good solid fruit 7 lbs 25c Lard, bring your bucket, pound 9c Super Suds, 10c size 2 for 15c Crystal White Soap, 10 bars 35c Palniolive Soap, 2 for 15c Flour, 24Vz lb. bag .... 49c Rees' Country Butter, special price Fancy box bacon in piece, lb 20c Iodine Salt, shaker box, 2 for 15c iPeas, Corn Tomatoes, No. 2 can 3 for 25c Root Beer extract, makes 40 pints pkg 15c 1 I CHEER UP! CHEER UP! S J. R. Miles, Insumnco Co. Carl Hrlinpll. Insurance. PROSPERITY IS HERE We are restocking our Men's Department, with all new goods. LOW PRICES Taken from present market market condition and NOT war prices. Come in and be convinced. . . Men's Overalls, Good Brand . Pfc All sizes Men's Work 11,19 Pants J Men's Khaki , Pants ; ; &0 "Men's White Duck Pants CISlC . Good heavy duck Men's Work Shirts, doubled stitch - C ed, two pockets Men's Dress Shirts All colors and stripes tO Men's Ties, Plain Colors " and Stripes.. iW Men's H - i - c Socks ,,. H2 Men's Dress Socks Sq Eegiilar 35c J. Men's Dress Pants S .98 Light colors and stripes J. Men's Shorts all' colors IOP 3 Pair for 1.00 Men's Rayon Shirts A&P 3 For' $1.00 $W Men's Belts, black' Slfctf and white eltjr Men's Dress Oxfords Sg Black ! Men's Work.. , fig Shoes J. Children's Shoes and ga Oxfords JL We also have a line of ladies oxfords and pumps at very low prices. Men's Suits or Ladies plain drees es cleaned and pressed Called for and delivered. 75c Shuchat's Phone 479 133 N. Main St SUGAR CURED SMOKED HAMS ' Center whole or m Slices xhalf 28c 16cl Minced Ham 20c Bologna 12y2c Franks, 2 lbs 23c Summer Sausage .20c Oleo ; 11c PURE LARD wltti.eaeh BOo meat orde LBS. 15c

Clipped from The Piqua Daily Call26 Jun 1931, FriPage 8

The Piqua Daily Call (Piqua, Ohio)26 Jun 1931, FriPage 8
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  • The Piqua Daily Call June 26 1931 Capone Million in Bank

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