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FEDERAL BUREAU OF TNVESTIGATION ALPHONSE CAPONE NEWS ARTICLES! PART 10 OF 11 SUB A

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Page 1: FEDERAL BUREAU OF TNVESTIGATION - The Vault

FEDERAL BUREAU OF TNVESTIGATION

ALPHONSE CAPONE

NEWS ARTICLES!

PART 10 OF 11

SUB A

Page 2: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Page 3: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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§§> wesama-rou,7~oen '?10.��Ie-ieatiees in its ll.'|1V:_lIB!1lIl8'l'A1;�Cl.p0tN:. once mighty overloni ofG111-case�: II-Blland. the Peder!-1Government today had annealedhim $120,000 10: un-Ilxei.

"scarfaee" la now doAlcatraz Prison. Califevading various income taxesmg the palm! I1!!! Ind_hem--run

The Treasury Department listbegan service of identical assess-ments against 14 Capone hench-IDQII. -

The assessment covers 19,000barrels of beer at $6 each. andcomes ¥ en nit-e@eth to t-he big-gest raid on the illicit beer bus!»

band have been alaln linoe thpone reign in Chicago. this wi

ot affect the Government�: acon. Ben-eh In being made toroperty ldt by these men aaainshieh Federal liens can be Diaoed.

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000 ln back liquor revenue taxes_:1-om. &#39;�.5o.er!e1:e 5.!" ¬�.-epom and14 0! his lasociates proceededanother step today when the&#39;I�reasuJ&#39;y formallv accented assess-�ments oertmed by the unit oigrtaxes and penalties. -

Capone. now in AlcatrazCalifornia. la being assessed forthe nonpayment 0! taxes on 19.000barrels oi� beer at $6 per barrel.

If Capone or his lawyer. MikeO&#39;Hea.rn. does not pay, the Gov-ernment will try to collect IromQ9 living members or the olduxcero colony. &#39;Amons those liable for the tax-L

amen are: John J. Nolan. the man . -with 31 aliases and �bookkeeper� 1.:Ior the outfit; Ralph Capone, Al&#39;slgbther: Al-131-1-st Dodd, Charles; .

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Page 7: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Page 8: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Capone in now In Aicatru !_>r!ann,for evading various income tundxu-tn: the pa-pmbition b_ne_r-nm-

The Treasury Department ahabean lervina of identical uneas-lnents walnut 14 Oapnne hench-aen. The oertltlcatlonnft-heattics was made-to &#39;11-emu-y oft -dab I month no by the �ha:and Penalties Division of thepartment oi�ustice. =r "

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A� 1111 " ~51;: - ._ H

.hQ".-Hr &#39;*Tilhs&#39; I &#39;&#39;11: lune put? u!_Gl1�l&#39;l�I-&#39;Il�Tmyf&#39;Gepe:.io,

�iII¥QQ-.llll�l_l-Cul��i-H0 Cl!-Ib.I3�-44

an Q Hm klhop:lndlImhI.gu&#39;919°" mtg; c|p¢=:&#39;om:3=u:umnu&#39;: &#39;*"&#39;��*&#39;°"1�°"°�""*°&#39; &#39;

lleoh. asllh�l

Attullnnh ll Ul|fI|nn!.� HG III-In �IV! Until &#39;I�tlt!idQy B11111 the - 0 a be,r,¢_c|c-1.0 �cm 92&#39;l"�=m Club hld &#39;1-92&#39;=&#39;="I*l =11? Hm" l°- 1112:� sum um m..&#39;3~. 12?;tent-Iumn obviously mg, with lttendlntl in checkeredtn mktn: love. md tmilormn. For the presaxtjhehvllit�r in 092IIIV!;§- games have been discontinued.

Own mode-I1 W11 9 rumabily it the luggatizn at armwu . iqlii�-negkmd l:uro- � period 0! qpuuion inn tndi»hnun�tnmxm�xh . Cunt:|.nundm&#39;I&#39;h.trdPoge.! 92nmoun &#39;

B tum" "

lunpea-money. � ~

here.� - - dhouue until they �liened up.at

It oonven- .

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ell� {III

�H� �uh ai&#39;» *5� Q� � &#39; "92-&#39;A"= _ ._ - r &#39; " .- - �. 921 ! � . M I Q-at-no-J. 1 D-92__ &#39; , _ - . -;_ _.¢.;h:,= ,&@§§#§§z? -w@�~w@-_� - ,_ -r92 ,_ ,

_ J -471" V -_ �*1��z. . t ! �n ..&#39;" 13""e.» - 15;�-:,�.�,�f@&#39;: A 3:.

* LI-Inna I"-"._= l=I&#39;IwiI§t&#39;l19w=IIl&#39;-&#39; - TIn: III� utuh1¢h=nbim;alo_r§y1,|g&#39; nxenmqieve�ue. _ -_ , , :__ . .»-,;=- -¥;;-@,;*.,.:***....*1~,.= mm -M-~~g an - .. &#39; pg .. ." "P 5* -""""&#39;*§:°r °�&#39;-KEN� *"&#39;-;L,&#39;,:$ "Ouwne Motel!� W Ina! biing "��°� °t *&#39;at zlniniu �mm mrb�l m|r§d1nn=|%.�m1&#39;hm &#39;* �"5"�! &#39;P°* °" �*3. �l &#39;. �mt mowmm-ma-imm mloutheut owner at _£I.h&#39;oou:1 andG ff?� u W15»: when l&#39;reporf:r visited n.&#39;°°&#39;°"�=� "&#39;5 "1 ""&#39; 5°�! FM�?ht» eam1n¢iviuuu- 3"� "&#39;5&#39;-�*�°"&#39;> c"*°�&#39;-"&#39;°"&#39;�&#39; A 1-�:2-3m&#39;:�mtv|1::ed&#39; -é�did� ymu� u �m1otI-l1phlndAl,IuvIorkingbe-

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an dtwc �u-ee or tour �ake!-windawe !&#39;l&#39;h.I.| obvious ms-

tton of the odd: does mt G¢&#39;.er

theLrluck,however.�Ilnnlewlllon. 1

That Cicero Jlmbling in in the

ted tn the nrepantlon ot newtutu. Four Ipotn within a short- imce oi 22d:�:t-eet end Ciceromue zelgeizsng 1-eturhhhed tor

lining, c Ind blowing thework: on n good meh �ue mm.

Other business teels the bene�-

�---____________

1 -En.rm __-- &#39;1- 21-;

t in�uence 0! the lyndhtate Ibo.e women in the vicinity of

Oak Puk avenue, Stick-ln 01¢ raedhogle thnt

k �u: yours, A e lyn-- te operate: n handbook with aan Rutherford as manager:"You can lly -�whet you went

-- tthe qndlelte, but they lure- -- hulneu ln 1&#39;-ltdghborhood.e were stun-in; tn dath in this

O�WWel!&#39;lll1H.hdl¢lTPe�l&#39;I-Iild92-- tnde.�

-"nut plht netioml-�nue, �H1-~ -- Gun net" llnGurn,4lsohu- :p|#,nndrIu1nittm|nnome

- than the �G! Illlll�tl, keeper

CUgh! numb]:-*§u=-.~m&#39;Il1:oul&#39;�&#39;wis do-

� H �&#39;**_ A e� �LCHICAGO DAILY NEWS �&#39;5Q "- � H� /20- <

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Page 18: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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RECORD or iiE|BOW|TZ

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%c>ghen&#39;s Opponentpone&#39;S Mouthpiece,

Says Ex-JudgeFormer Magistrate Leo

��ealy linked the names of Sam

qnlfenees at Democratic ralliesih ughout the borough lastpight.Z Msa�ing Leibowitz fer aspiringJo the Democratic nominntinn forDistrict Attorney alter havingIerved as the attorney"mouthpiece" tor Al Canon .Keely wheeled tor the eleeti nat Prosecutor Geazhen, who sum of the ncketeera and 1|I|lvt$"92-t92&#39;FT i�d ¬?ii�:T92�.�

_m.&#39;rA mom BOOK.Henli. bosom friend and at one

glue the attorney fur Lelbowitz.pped into the pages of a book.

�Not Guilty.� purporting to be thelife of Lelhowitz. for the 1nl�m&#39;ma-Iion he hm-led at Lelbowits.

�He trieke� the poliee he jElam�: �lthy money," ensued&#39; an ee.

ea-Ir. �He I&#39;M wlned and dined, Qnnene. _l!e e1.!!e_"1_e.*.-.:ee 9:; &#39;

�pone at lull on lwme. The

"And teen Lelbewlte wiehee =hat book never Ind been Irrit-

. n. It: ehocklnl revelations et&#39; elloelatlen with the Indet-

erlcl haunt him in this cam-:1. It urn Lelbowit: that Al

pone lent in when Capone 92his blood vampire; invaded

w York."B98111: I Irimd of Leibowitm.

t- t-ne tige en! Q1l.:e92.eiu�e 9.-:£Jet=92em. on n ehnrge ea� nubormtlon.

-» perlury. Keely acted ea his et-- ey. The indictment was die-

-Quotinz from the book. Heahvdo�lthe:layin:ufthree:nem-raofthewhtte�nnd Ilntin

hlch eeuled the policeAl Capone. . .1

still quot-In: hum the t.leeland lull. �Page *

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Page 19: FEDERAL BUREAU OF TNVESTIGATION - The Vault

- --_- , z , - __ ._ . - - _ ,- 92 . &#39; -�- &#39; ---dirau-~n~u-_� " J. - ._&#39; � &#39; ""&#39;-7� &#39; �-�- &#39; &#39; --- = 7 __.,,, 7%..� . - 7- . = - 77., _- -~� "I"? " _

.. _ _&#39; .-_v~-�.- ____::.H__ � b;---7" 1; ;_-r_i_-�-_?_&#39;rj: 15-;.__.�1_ ____,_ _. "_-_t;i1;___&#39;:_ fr:-fj7jLf&#39;;�jlj"f_*;?§-_;F_:f1&#39; _ -E5:-&#39;4-é"-7* 7 7-:~r_:+;¢Er?7=j;__-7,17;--1�_&#39;_ -3- -7* £7-.-: ..<.R�=_....?__._.,..7?"_-..,._=&#39;*;.1:.7__.-"�"""&#39;7 - ~-�=-if-.:.f7"&#39;?f&#39;"_*1¢~;<r++::--£5*&#39;i�=7�&#39;"�*"*�=ri?*7�;i*¬Ffi~-*7 *7 ii 7 _ -� �&#39; ~ �-I-�-» n-¢_ __________ _ _ _ _ 7- I -lnu��92_-_ _�l¢.~-A --1nm___ i__,,_________ __, ___ __, _ __ " V N� _ Hf" " v� W �i�_ W �� � V_ jji &#39;*7�~7*7~ -_&#39; -- .. *7 »�,,_ _7�.�__�__�¢;_ -_ _ V ;,_&#39;***___:_�_f�f_�f;:� &#39; *

: 7 _ : -, _ &#39;� &#39; I� "&#39; &#39; j� T " " &#39; &#39;7 *�**f --- *7 *-._§-&#39;_ �7_1<�~=:=_;i�.i.� � � . ,, ..- 4 -Q7--I-1 --Li ii ._=-; 7 ��- �t: j _n-uIj|~_A_* =11... q-I-_:5;-_ ; ~*_&#39;i=":_:,; �-»---��f7�.* :*==|i"* �- "f A. .7� W - 1»-up �lib M , , I _

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"�""" &#39;""&#39;" San Yrlnciaco EXAIIIIEB ""&#39;-�"&#39;-&#39;-&#39;

- 7 -7 Beptolbar 6, 1935. . 112- . -__ J-

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92

A �.@~:&#39;= £: �~l_q,p- ~.7.&#39;-._�-�?- 7 &#39; � &#39; � "� &#39;

if Te>ié.§!,:_&#39;Sept. :3.--uu=1#+A1 ;CapoheImp t:1rped7_philant.l_u*ppit in £1cntmz P!�ison, W; D.�May,_ oomgdl murderer, amid tonight as he �pmpami 11�; mm dam&#39;|ln&#39;the �qlectric chair: 1&#39; 1- T"**- gr - ".*T~__,:� �T *-W May, yho served 10 months in ; Prison� &#39;orchest.rk. &#39;0a&#39;ponq ijso&#39;,Mcn.�-az with Capqne, sud cg-Yvffmd lo� my $400 for 1 tennisQpone bad p1u&#39;cha.set! $1,200 worth court for the *�?��~&#39;*"~ L -D

&#39; Hay was electmc�ted late to--� band m5t���°��- ma P"�_ night {or his purl! in-a triple �slay-�énted ,the Alcatraz lug near Fort W!!!&#39;Bl""" 7 &#39;&#39;�&#39;--- &#39; __ -.»,---._,k1]|.

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inhmn U

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Jnlrp�Heath . .

Lesa:Quinn ,Schcidv_ ..Schildew: .Tcmm

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Page 20: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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�s. GIVES CAPDNE 000 TAX BILLT " r &#39;3; rasosnncx c. OTHMAII.� wssnnzsrou -;uP}.=&#39;r@ the incredible-Alp_hQ1&#39;_92sei

ll&#39; Scarface Al! Capone yesterday went a $120,0 i_!gb|J,E&#39;orlunpaid taxes on 20,000 barrels of a nauseous flu_1d_ jw chhe sold for 50 cents a bottle as beer during prohibition. =

� �-�-� The onetime overlord o! Chi-Icago rum running, vice and gamb-

1

-i. 1_....-_.. .�.__

ling was putter-ing suilenly in thelibrary of Alcatraz prison, serymg�an 11-year sentence on previous}tax charges, when the Bureau Of�lnternll Revenue discovered thelnew debt on his back-alley brew.

.1 The Government also charged!1� scores of Gap-one�s nrewmnste_rs,il�nger men and collectors with{hsuin e hand in the sale of the.~ 20,005 barrels. These included Al&#39;s�brother Rllpli, Bert Delaney, Au-1 st Dold, Charles Feuehnneyer,�nlseyh Fusco, Jack Guzilc, GeorgeHow ett, Albert Johnson, FrankJuffra, Nicholas Jntira, ggmen;Levine, l�chael Lop:-lsti, J n J.;

;Nolan and Steve Swnboda. They&#39;ll�ell pay up too-�or else. -&#39; G-men renewed their search forthe untold millions Capone wassuprosed to have hidden so hecon d walk iron: ¥1-ison some eightyears hence, e at and wealthycitizen and once again wear greensilk union suits under his well-�tsilored broadcloth. 0l The Treasury -in _y u> collectfrom the triple-chi Capone incivil courts. If F 1 sleuths em�unearth the golden che thezethinkexists, the Govern t may ableto mark its bill paid. Otherwisethere may be new criminal chargesi�v�-&#39;i§l.iag Cswae when la is fer:-awsway from the island prison in SanlFrnnc.|sco Bey. yg_|i-�iIi-

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Page 21: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Y if __&#39;_~!¥"A_:-,�*&#39;-&#39;1-"T17-;..5�.&#39; "i""::&#39; .&#39;-�~ �T":%=_--_ E.-"&#39;*"�?&#39;-==___� �=l=&#39; ~-- &#39; "*"" <�.~ -1-: - . __._ I

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�ut�sgs $120;m�H

.. . -I"I if A*I@mee1WP¢m= 92Ga�gséer �and Friend:H¢_fl.r_sesse¢l for U n paid

1 e-Taiesbii�eer �?""-

;_ WABHING&#39;1�ON,Auz. Io AP!.--;é A1011»-ne. Chicago beer bnronnow;

Ier�n: an 11-year sentence In "�I Aleahru Penitentiary tor income�tax evuion, today wee; almost $120,000 by the &#39;I�reeeury�Hm llquortuee not paid.Z The aeaeeement also Ill 1e%ae ega1netot.hermembereo!theq_ -1J cego syndicate with which CQIHIIQ; ,mu connected In the _Dl&#39;0h1b1,,DL92Hem.

1] Capone 1.; charged mm the H�legal manufacture, distribution and Weale at beer. . ~

é The &#39;I�rea-sun will t-eke at-epe Im-e xnecnetely to eelleet the assessment é�In 1 clv� court proceeding. *1 The Juztlee nepmment um:- �lhhwi�mdoubtmnna

renewed leereh lo: ,f and other mete et�l believed92 lo have been lee:-eted bl� Clpone

during the luau; yearn 0! his �III-

hT�:eu1emr:GMn�m.n92met." the C nonee 1 emynxiicate involve 19,9843/3 barrel:ggsgur�emd between 1031. e II-�u assessed$8 I barrel.

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- �r. Joseph ___.___I M1-.Kei11; _____ _

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Page 22: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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y. eriinienl Files !_&#39;.&#39;la:Ir|ig� en],0008arreIs eticizod Beer.

. ...- 1;,-. . ......-,11..- .�,_,�,.. ,

i t LL� �HUHT FUND CABHES

_ ..;.....,__,...

.rmuq;wm Act in Civil étiit.__B»¢u¢¢ Chief Ha: No Prop: 1-9% 5*»!-&#39;9~&#39;:9*I_..-..- _... . _-._ ._ .. .____,,__,. ..a .7. ..__.____.. an ..___.¢...-;.

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&#39; -,_W.A3H1NG&#39;lION, £08. I0--Thegovernment will attempt to collectabout _§120.000 to beer taaee fromIll Capone, former� Chicago underworld king. and tom-teen members

. 2 the bootleg lyndicata which hedirected until jailed for in-oome ta!

_Juet1oe announced today. --_1�ar aelemblieg voluminous ari-l department bellevea it� rove that the Q no lyndt

� ll - I.P P9

eete manufactured and eold 19084% halt-barrel! at high powered

Q beer" in prohibition days. Admit-.t.lng that thin ta only a email Ino-tion oi the eyndloate&#39;e actual out-

1 put. the department, nevertheleee.haeaakedtheTreaaurytoltertao-�tion tor collection oi liquor taaee�On the beer, which has been traced1� to the Ge-pone gang. � &#39;� Joleph Lawrence, adminlltretorlor the Attorney General tn charge

� of taaee and penaltlee, today oer-Mtl�ed to Commissioner at InternalRevenue H-alvarln; .t.he too lgh

1-lahow that Capone�: syndicate manu-; lectured the 19.34% halt-barrele 0!

¢ Expert: o! the liquor Tat Div!-921� elon announced that the one had��loot been turned over to them yet,but explained that the�neual pro-92oedure is to eaeeee the tea dueegelaet each member oi� the eyed!-eate. eelleeting it where they can.

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I� "-I |"i��92�l 1&#39;

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_ gaiml�ld. cum» Syndicate .

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_$l20,000TAX LEYIED;UNGAPONEANDGANGH;1_ uodlh-omPage0ne.__j.iho in new aervlng hie eentence

the income _ta:: conviction in.eatraz Inland. will be eta:-ted�I�rea.eury Department in an -.to collect the $119.00�! in hear.

- &#39;, ancordingto the JuIt1c�eJDe-�iipt, ..92,... .. ..

!I&#39;be tom-teen othcre named withCkpone, many ed them prominentin the Chicago underwor d of pro-hibition daye, are: .

Ralph Capone, brother I thelung leader: Jack Gaelic. De-laney, august Doid. Char s Fue.he-meyer, Jame: Fuaco, rge How-lett. Albert Johnson. Frank Ju�ra,Nicholas Ju�frl, Hy-¥:|an LevineJeane Loprll�, John . mum and

Q Steve Swohota.l� Doubt Over Oepondb Ilnanooe.

Ipecial to �Pat HIV You �rune.CHICAGO. Aug. 80-�&#39;I�wo con-

Wlicting views were presented heretoday concerning the government�:

92 chance: of collecting the ta: assess-�ment against Al Capone and his old� |yndir-e.te- Government official!

hinted at the chance �that large-aume had been accreted by the gang�leaders and that these could be r�aiiaed to cover the inclement-

It wee oonelderad likely that

already uee¢i-�uen&#39;ie�ee�i»au- in--corne tan de�clency._,___�l|_ incometa: lleblllty wee oompromlaed at$157,418 taet lay. �Capone�! at-torney, Michael Ahern. a peeledtrom original elalma oi $823,�:and the stipulation was the result.Hr. Aha�:-nttaid that there had beenno nego ia one toward _ -Hr. Ahern laid be d &#39;mt

any appreciable eum o! money

eald that he knew of no apropertyh Id. th I . :.:*:...""�.......=&#39;-"W" 2:2-{overnmenh .� _. ...-- - A

Captain �William F. Waugh �lter-ney representing the ayndlcate dun-ing the liquor tndictmant troublee,also expressed doubt that Caponestill held property lrom which thenew aeeeaement might be realized.92 The new tax repreeente a levy onbeer eelzed in relde during theyear! 1021 to 1082. Informationgained by the raid: wee incorpo-rated in an indictment namingCapone. Bert Delaney and eomethirty-live othere, and chargingconspiracy to manufacture and aellillicit brew. After being amendedseveral tlznel the indictment was

dissolved atter the repeal of theEighteenth Amendment.

One angle of the cane by whichthe new aaeeeement can be need asa threat over the gang leaders lsthe fact that the ludgment will be

�in effect for eia yearn from ye8ter-day. Capone went to prison May 6.1982. and ti releaeed for good be-havior in seven and a half years

�ajorlt ot Capone&#39;s tangiblebeta lnytbe form of real eetate.Wmlil.VQ to turn all earning! tor

over to the government.two yeare

&#39;;&#39;!..~; . .in. |&#39;;&#39;_:__i&#39;l-&#39; ,1:", 1H|Iw-- »:ini.Il.,_ [-1 l,� 92J E, �

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been cached by Clpone."&#39;Be

F+i

U» ..i-HPo Té1=_=.�.=lno-. o§.§+-me ..Chief Clerk

Mr. Cle|{_.____ .

Mr. Coffey

Hr. Etlwarda ___._Hr. Egan._ _________ _�Mr. Poxwortb .

Mr. HarboMr. Joseph . . . . .._Ll:-. Keith ..

Mr. Lester . _ _ . . . . .._

Mr.Mr. Schcl�§.._&#39;{.____M1�. S£hLder ....... ..

Mr. Tom:-n

Mr. Trot-y .......... _.

525:�

Page 23: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Page 24: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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on.._. �I-4: -

&#39;f.sms¢twommrPf" on 19.984!/Q Gallons

&#39; J-Seized in Chicago Raids

Msny Others _Assessod

$228,747 Is Sought FromGordon Yand Associates

__ �<r-.._...__.--_--M �=1

,_,,,. _ ..--sI&#39;-~ �� - "&#39;* T. 4 __ _s. __. __ *7 _7T- ,_.. . � - 14."...----�--~-�----"&#39; 7 . o - &#39; �- "&#39; W _._

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. I &#39; II1&#39;�¢1.ssoe£sIsdPre|| [�y 5.;-&#39;_&#39;-;�§ hj �ik {M58 Mr.WASHINGTDF, 1 . BD.��.i9211.1: Capone.

Chicago&#39;s sear-tsoed beer baron. and&#39; fourteen or his gangster cronies today

were billed to: $129,!!!! In unpaid ts:assessments on illegal liquor-_ &#39; &#39;

The assessment was mother step inthe Justice DepsriJnent�l i&#39;und-eoilect-ing drive against men charged with

. reaping �large prollts in the days be-t fore repesl. Others smessed previously

included Irving Wuey Gordon} Wes-; ler. Ms: Hesaier and Iviiorris Green-� berg, and Heine Wsiner, of Wisoongi,Q who is reputed to have battled -~. pone&#39;s �muscling in� along the Northlihore and in the Wisconsin reaortiL district. �

The assessment today against Gs-�� pone--now in Alcatraz prison in Cali- �._ tornis�and otha alleged members or� his Chicago-Cicero. 111., syndicste, was&#39; sent to the Tf�sury for collection by, Joseph Lawrence, sdminlstrstor oi the7 Justice Department�: uni; 0! taxes&#39; and penalties.

Assessments $5,000,000 -Lawrence&#39;s unit, which has assessed

shout $5,060,000 in tsses on illegsiliquor in the last year, devotes s ms- 1

�jot portion of its time to unsettled 1�seeounts oi� prohibition rioletors. U

_ Al 0spone�s lawyer, Michael J. &#39;I shesrn. said in Chicago that Capone,&#39; now serving a sentence ior income ta:; evssion. was "supposed to he broke."| But Lawrence retorted that the gov-

ernment is �ee to collect the entirets: Irons any one ed� the Iyndloate

_ who hes money. Tax authorities hsve .Kthe right to seize the property oi�

those who refuse to -pay. JWexler, Hessler and Greenberg,

leaders or s New York-New Jersey syn- �"p. �lcll-8. were sues-sed 1225.041 on 129,- ,910 prooi-gallons oi illegsl alcohD1&#39;1 about two months ego, Lswrenoe anld.q Tax oi I6 a Barrel sought 1I� The Cspene assessment wss bssed&#39;1 on 10,9455 barrels of liquor known to �H have been handled by the gang be-,| tween 1921 and 1932. All the bsrrels

counted were reported in raids orseizures during the prohibition era,Lawrence said. The ta: was alsusdst I8 s barrel.

l4wrence&#39;s men still have 60.000

92

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.._~;_ " __.~::"-&#39;. &#39;.="--=.}= � Mr. BqughmanChief Clerk -

cu: ------- --Ca�ey . _ . _ . ...Edwards ....-

Egan--.---~ForwonhHsrho -

Joseph ....-.-Keith

Lester.._._....

Q1113-n----~ -Sch�id�SchilderTam-m ....... --

1�;-gcy-&#39; �nn�v-..--�u ----

Page 25: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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* A &#39; ___:":&#39;_f_ _*&#39;"__i_ �__&#39; _ ._ Ch!|:fClsrk..........&#39; ""7....P-.~..§&#39; �._�.-T ---92 _A &#39; �--�=-e_=s-� *n..4||-a, e _ __&#39;�"L&#39;2T_&#39;7f,�::���_ 2-__-�_�__�: � � . -�&#39;=:i, - e _ , .&#39;_1a" -we

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$120,000 C92 , � . . .

WASHINGTON, Aug.� so-un-�Ai Capone, Chicago beer bh.ron�aow�Jae:-wing in 1! year sentence in Ai-i catrsz penitentiary tor income ta:Y evasion, today was assessed I120,-� 000-tor liquor taxes not paid.

jl&#39;.�i�he assessment, orhered by LIE., eeeu:-y, else er-...e levierl eggn FM� �ner members 0! the Chicago

M cats with which Capone was noknected during the prohibition era-- Capone is charged with the ille-&#39;|&#39;a1 manufacture, distribution and!n1s of some 20,009 bu-rels of beer.

The justiee department said:".l"his will no doubt ean I

. renewedsearchior �aehnulaand| other emu s�ll believed to have� Lee-.. %.=~e*.1-A L-g Qpene gur-

ln; the long years 0! his Illi-HM�92!"U�rI�0ns." I-�&#39;-*"&#39;

V;ISGO;3::$I1�¬

AU-GU;-ET 30

-&#39;92»&#39;92

Hr. Lester ........ ..

M1. Quinn ....lie.llr. SchLIdcr......__.

i, &#39; Mia; Glaudy ........ ..

n- - 4 - &#39; " " &#39;92/"

{¥&#39;i3»;gJ__"i.,_--_*&#39;=z;-.-;-,§I&#39;.1�nisnn;:&#39;:.......

Mr. G81!� .......... ..

Ir. Ca�cy ......... ..Ir. Idwszrds ..-....Hihllan ..... &#39;

Ila Foxwurth ..... .,M1. Blilfbli

Ir. Joseph ....... ..

Mr. Reid:

.36;

Page 26: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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levies $I20,0Q0___f Tax Againsi Capone A; W,. WABIi1NG&#39;1"ON,A . ..lernntidtuzl Newsl�l����ta of $120.00!! Irene levied

kltllnst A! Capone today by mg.ta.xea and Penalties unit of the,-7&#39;-923ti°= D�llartment. Assessmentwas made on urges that �Bear-tace A1" had anuhctumd, dia-;&#39;�>92l�?;;d.a-nd Id egme 23,1390 bgr--mu m _ _ .Inn-m." N� �°"°�d

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In Alcatraz

E WASHINGTON, Aug. 30 Wi.�-A1rilapone, Chicago beer baron new-Laerving an eleven-year sentence in=_A1catraz Penitentiary for income"tax evasion, today was assessed al-ipnost $120,000 for liquor taxes notpaid. _ .

I, The assessment, erdei-ed by the_g�reasury, also was levied "against

ther members of the Chicago syn-,dicate with which Capone was con-,nect.ed during the prohibition era.t Capone is charged �with the ille-�gal manuiacture, �distribution andgale of some 20,090 barreis of beer.

5&#39;I&#39;he Treasury will take steps imme-Idiateiy to collect the assessment in*a civil eourt proceeding.5 The Justice Department, in an-gnouncing this move, said:1 "I�h&#39;is will no doubt mean a re-inewed search for the funds and-other assets still believed to havelbeen seer ed by Capone during theflung ye o! his unlawtul opera--tions." -

1" if -lr &#39;-

FI KW 1&#39;3?!-7. P.t..

Chief Clerk ..._M3. CIESH ---- ..

Mr~_C_f!!$1� ..._..lit.Mr.

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Assets of Beer Baron low --�-Le:-/-&#39;1

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Page 28: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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� �ssessed by Treasury. rWASHINGTON, Aug. 80 A. PJ.�

�_A_! Capone, Chicago beer buco-now serving an eleven-year sen-

ttence in Alcatraz Penitentiary forilncome tax evasion, was nsscased�almost $120,000 today for liquoritnaueu not paid.

The assessment, ordered by theTféiiiii�-&#39;, also &#39;v&#39;-�as levied againstother members of the Chicago syn-dicate with which Capone was con-nected during the prohibition era.� Capone is charged with the 11-!legal manufacture, distribution andsale of some 20,000 barrels of beer},

The Treasury will take steps im-_i-medlately to collect the assessmentIn a. civil court proceeding.

The Department ct Justice in sn-nouncing thls move eaid:

"This will no doubt mean I re-newed search for the funds andother assets still believed to have,been lecreted �by -Capone duringthe long years oi� his unlawlul op-

eratlons.�The Justice Department said the�

assessment has been certified inthe Qommissiouer of Internal Rev-enue by Jose Lawrence, admin-Iistrator tor e attorney-general �In charge 0! taxes and penalties�unit oi the D artment oi� Justice. �

> I

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Page 29: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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levied dust A1 Capone todir by

|Justiee Den:-rtment. Asseamnentwas made on chlrlei "@1110 &#39;Y5°l1"

; 0. 0 hoe _ Al� hl��i &#39; mnnu!n.ctured..

distributed. I-D6.

sold §m_ne;0.0000 . barrels. " Hi��a legal and hith-- �p 0 i e 1&#39; Q d

i sDirlts.&#39;fCapone. now

n Federal pris-oner in Alcatrezfortress, was in-cluded ln .5 list0! the plleeedmembers� of theChicago syndi-

§l_. icatetruled byjg Al linen! mm_ __ &#39;*1 In making the announcement�fthe Justice Department said it�would endeavor to collect this

amount �due in this civil proceed-ings." This, no doubt, will mean1 renewed search for the funds

� and other assets believed to have�been secreted by Capone durlnethe long yeosle-0!-his unlawfulqperetlons.

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Page 30: FEDERAL BUREAU OF TNVESTIGATION - The Vault

UF�I[,t BOX1525

PITTSBQRGH

e_n-nlar __,,, I

!�lhu�led o� to _A10atra,:_Prlson toThe scar-raced gangter who

T.

- oome tax payments was -aeeueed=� $120,000 today by the commissioner

.1-IUJM his oenvlctlon. but the Gov-&#39;�u&#39;nment lnalome teller-that the

A llv "beier92&#39; imm �I

-

PA. k-if �~ �~<�� 1*�! o

H

rs&#39;l&#39;l&#39;:i&#39;B&#39;u&#39;FGH PR|:"�SS Imgust 50 B335llr. l�-lan..._-.-...._llz.I�o:I1-web .... __.

Ir. Natbm _II. 1&#39;0-laan._.....-._Ir. Balaachnln _.....Qki Clerk. ..... -....an. cl-¢¢ ..._._-__..

m Ix. Coley __.---._....� Ir. �Edwards .-......_

Hr. Keith ..._._ .__--.IINTINII --=»-»=--------.

_ _ In snail! F

1|"-"ll H [ll-. __---� &#39; 1- For

harges Gangster Failed9Q,"L92QQ .0

A-�Barr er W

I .wesrnnarou 11:. I0-The

V� The United Prue. .7 IA

and seize ,eome of the iabulous for-tune Al Capone wee reputed tohave hidden away before he was

nerve llyeers. 92 &#39; ;

ruled e. rich underworld domain iiiprohibition days but who escapedall severe penaltle o! the lay un-tll he was convicted of ending in-

01- Internal Revenue.The Gommiasioner ruled that 63- ll

pone. beck in the days vyhen hisllrlgsters� guns protected a mo-nopoly on bootleg beer saiu in Chl- 1eago, had felled to pay taxes tothe Government on 20,000 �barrelslnl&#39;_beer. - -;_ � 92

TIQ6 fact that it was uiezm ingiven a. high-perered kick by,doubtful m�tods. apparently dl_Gn�t1Interfere qt the necessity of pey- 9292ill texee. I 92

U. I. to Fight - 1Although Capone is ln a. desolate

Ileon in Benmgnclsco Bey, the-_0overnment dz to lo intomurt to try to collect the $130,000by civ� lult. �_ The one-time gang leader�: lu-eome presumably has been cut o�

money might be available it lt wins�01111 action. .&#39; � . .pone&#39;a despite theof his lron hand. supgredly

ellltinued to Iundtlorralter in-�rouatlon. =

0 ENFURTUNE;ll l92lDl&#39;|92|lI;

III

I, t

Government Set out today to �ii�&#39;

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Page 31: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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T OFFICE BOX 1525PITTSBURGH. PA,

gnu-» I-"&#39;

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_ during the prohihttion era.

L���ie�

$W�mmWk@@£ PT!.&#39;.i&#39;YeeT=2<.g&#39;1 *9; .r,� _ - .., � _ 4 l

fame �4-92l92p�i?.�l_a _�h..v_. X l _ ,1, .- 7�s�~ 11¢

Iet ooruuyAnd aeineaome oi the I abul

e Al Capone In

ed oi! to dieatrql _l:-ieonwhle11jeh.ra.92_,

.--.�I&#39;he poor-laced gm�ter -Ibo» =tzm..,."�=*.1:&#39;=1�=%"��"* �l�kn 0 "__ Inevere penaltleeo! the by g�-__ he wu convlebedolending -mme �ta! payment: wal

,_l1:t0,000 today by the Uommiuiooer; Internal B-evmue. ; .-&#39; .. &#39; -192

The Commissioner ruled_ that Oa-=pune, beck in the days when hie.

lan8$ters&#39; lime protected� _a Ino-_nopoiy on bootleg-bee eels in Obi-*

cago. had tailed to pay taxes tothe Government on 30,000 �ban-eleof beer. _ K 92

The tact that it was lllezel beer.given a high-powered kick bydoubtful �5, apparently didn&#39;tinterfere , the necessity of pay- 1in: taxes. &#39; I =

U.5.aol&#39;l;ht -Although Capone is in a desolate}

- wison in Ban E;-anctsco Bay, the;i�ovemment �intends to I0 lntni* court to try to collect the $120,000, by civil Iuit. &#39;&#39; _ &#39;I".he one-time fang leader�: in-

come presumably has been cut 0!! Asince his conviction, but the Gov-1*eminent indicated belie! 1-that the

. money might be available it lt wins,, the civil action. &#39; o 7- -Capone�: organisation, despite the

lose oi� his iron hand, supposedly w tunctton after ha !n=oaroeration. -

There have been tequent reports&#39;._that the beer our pwnvided for him-

lel! during the days on bothmoney and lives cg "bee: nmnen-were cheap. � . ;

As. a result, the Department of.Jnstlce mu renew a lelrch tor�tunde which Capone ll believed tohave hidden away before he gave�himself 1.1;�: for trial-expecting at:liaetaiig tlentenceitnotrreedomInstead of the ll year�: to which hemenu -4�-if-nnpnl

Blrvee Three Year: . h&#39; &#39;I&#39;he .;ovqrnment&#39;s action todeyplaoed the �rst actual gienalty mlCapone for his alleged illegal liquorpro�t. Capone has eerved threeyearn, three inontha ar.-dI�da;rI,ot_|the eentmce for evading� taxes on�his gambling income. 92

He was sentenced in Ohiolio. Oct.11, 1031. Be began his eentenoe HAtlanta, May 4, 1032, and was Irani-Ierred to Alcatraz Bent. 22. 1031. i

Included in the mega! liquor ti:alleeement were nuinerous un-named members oi a well orianiled

� Chicago crime syndicate which Oa-pone was alleged to have directed

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ta his use it5 volt would hlve lo!

hll Immcr cltcnll. Thegpirlf at compromise which hasItem at a tar overnight: onin the namable bracket: must:ale the Unltnd Stltel Clovcrnmlnticthlmuthlamajuuaztomhternalnld la

any-way. In hm, there in nu doubt about that.n a a 0 _ 5,,

mun"! awn! CaponeN tar bl-I I�dent oppodtiun&#39; llc�ride and Bishop Cannon.hadlmmditnecssanuunnrmmethwas alan a great popular impatience. Ill lull be-

� bum! rich. and with wealth clme arrolance. and ltnnrlnu�y annoyed hnnst taller: Including llltorlnlwriters. to nbeenre their partner In erlmu aplmtthe eighteenth amendment and the pmblin| lavano comlunably Ilzed. He val guilty II man!-i.n-udemal n-ad-urn at the p�ee. ineludmg, mean-tng 1.0 the geaaip nt� ht: day. rune routine buniciduwhich Iull�ild unimportant and vary undulnhlacittnanl.

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iC95n}v.i¢t Say; l#f5i.!lYL V--~ &#39;* " 1.1:.

At Alcatraz-?_ " K� -&#39; " _ eopmem. ms.j BAN l"R.ANCIBOO�A sordid version�of life in Alcatraz "Island prison in!5:2 Bay nus mid yesterday}by William Henry Ambrose, iormer;narcotics dealer who was removed tor"dqm�n�on ulnmzmne . -1

Ambrose told a story of 1 prisonat almolt eontlmul lllenee, where

�even lard ehuneten like Al 01-iae i�e�e Chhie eke nee

nre"hnrnlngIpeverlheI&#39;Ilesandregulations.� - . lHe revealed that Capone, �rst of

America�: �N01 Public Enemies,� hasbeen promoted to prison librarian. �

�Capone has been thrown in thehole three or Iour times for talking,�

spoken by the convicts in line, at the"�lble. at work or in their cells. We�got to talk once I. week�on Baturda �

iu�nlhdheel -~ &#39;3,,,,.,were allowed out in the yard.� . -.

&#39;.l�he fuardl H1 kindergartenutni! on prisoner: who are nup-posed to be the wont in America.Sill! rules like this:

�I1� you leave bite I loom! on yourpl-nee, you hoe one meal. So llyou take e Inn�nrtu and leave �the �lm um» they�:-e too

lam r"No 1-Mike, not 1 elnglc ml�nnper.

You con buy magazines, but theycome to you with {ages endiartielmtorn out. Your let-ers eome to you

eenseredandretyped.Outntet.tu-ee-%e!e11-e_vyoumey1ge&§o:I_evenLin

"It&#39;s the silly. egnvetlngsuch ea [rubbing the safety nmr

hecktmmymljustesmonuybuwgfinished shaving in cold Il&#39;B,te:�-that

_ v_- Ambrose end. �Not 1 word can nei� 6&#39; �

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ijunmn Accusinem IST A.Il. AGAIN

.. &#39;�§ie,&#39;:e _

ponelily It y&#39; . Seekin� ,.Powef.g ,_ .. . _. .

Brmka�i� W &#39;|.�ii1&#39;�*.!i.�"iii-honey, Aldermm md TammanyElder of the �rst Assembly Dis-ftrict, eastern hail, repeated many. 288 made in ,a.n org-eniunion[�eeting last night um I0:110. old-time New Yuk

I_ f;i4_.._ E __ll _ &#39;

tnrees led by Albert, lnrinaiii,Oounty Clerk Ind ieader ct the

A �A ..-.....92.92_.-Q-u I-l_L - �H niucmuly Uainrlii�. " "92 Torrie end Mn-|nel1i,1t&#39;1ns I1-leged by Lewis ,1�. X.MSa.ntange1o,have formed an alliance to extendMa.ri.ue1i1&#39;a &#39;|w:y&#39;tu-tber down &#39;onthe east side. _ _ ,-.?"&#39;.&#39;l&#39;o.rrto," -Rid -I1�. -lent!-Bgelo,Yntdered llarinelllmun in the tickettrict it he knewhim." &#39; n n

Mr. Bantanlelo in 1 candidate I0:Alderman. 7_ Qevez� Qeye % yr; sentmgeiez

brother, Robert V. Bantangeio. As-sistant District Attorney, warnedthe Marinelii forces in n speech towithdraw their ticket in the FirstDistrict by August 116-lut day iordeclining nominations-or take theennseqnenees. 1!: dis! net smfy_, .&#39; an-�cketeer and assoc� 7 e consequences. Last night, .l

_ pone is Interesting him the; German Enhoney, addressing 9. ra ly_Z_,, s ip �ght. on behlii or theatrthe Downtown Club, as Median

4

V � ;?T".T�!&#39;3T7&#39;-&#39;i".;.. .., .-.;&#39; V. _.,{8t.. until; warning-intognun-crate form. �_ "�-*?&#39; � -;§ �The men =11: In Mt hoodiums,� he Q _ "�1nd_b_eIcre1jthe Dewey In SUM92 cuszinc tum hostile; &#39;7 _I *llp17rIs"-Y-&#39;801bm6n: l�iemhb 5�=d1dlte, lttlt-had O13} El�n�nttemptiru to to »;d.i.§t____ri___

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_ .._- - - ~�-�;- ;ZZ&#39;:_-Z7-7 �- K »-&#39;-&#39;-&#39;�_ .�!;_. - -75:;-I=_;:�r_�_,~&#39; &#39; 77 -"*"_-.-~.=__-_4__-===="��~ * &#39; 1-� &#39; H 4�:-�

ii� leader, and place it in the hand: of

V

- qr.

,v ~921 __,,¢_ -ex_92

.ivobiaemns Accuses t�USING GANGISMTERSA

ormer Cepone�ea {Illegal toIe Adina iau�ret J. DJ

-- A beagle, ra;l.;�:_&#39;_=;gangster: were mvad1n|"tne out».em part of the �rst Aleemhly Die-.

Etrlct in an attempt to .wreet the�eederahip or the area from Davidlle.honey,-- -preeent -Democratic

Alfred Harinelli, Democratic leaderof the Second Aaeembly Diatrict:were made lest night at a rally atat Downtown Club, .U HadiaonStreet. - ¢. -~ &#39; -

The meetingyntt-ended by1norethan 1,500, II-I addreaaed by LevrleF. X.� Santaniello end Howie �J�.Bolomon, Aldermanic and Aaeemhly¢andidatea,_reepeetive1y, from thedistrict, and uI.&#39;HIhODB]f, preli-dent of the club, . _ V �

Hr. �antangello contended that

ekT.

"Capone gangsters, led by JohnTorrio, who brought Capone to Chi-ee,go,"&#39;-ha&#39;d-. allied themselves �wittyMr. _Ma1-inelli in� the fight �over the�lemdea-e_hip&#39; at the district. Here.»-Jeerted um Torrio had ordered uniMarinelil to �put a certain man onthe ticliet in hi own district it you 92know what&#39;s good tor you." , Q,Ir. Ilahoney declared he would H

oppoee any attempt by Ilr. llarinelil �to aeeume control of hie district. �He aaid that �the men oppoelng meare led by hoodlume and before longthe Dewey lnveetigation may heiilf�ng into aomethin; beeideevice." &#39; _ I

The contention that Mr. lhrinelllwas �dictating pollciee outelde I

own dlltriet" wee made by r.lemon. �The cluhhouae was ti

I-J

capacity and many hearddrealee through loud-epeakera

the etreet. - &#39; -F Q -1-

Kw-

___ _~....- ___..__.-.....-- -1-_"

[oh-_ C1agg....-.......Mr. Coley ..-... .Mr. Edwards ---...Mg, [gm-|

Mr. Pcxwvrlh . .__...M1�-�lrb� ._-.... .

Mr. JosephMr. licito .......... --

511-. Lester ......... --

Mr. S:i92eli1*_...-.--.--Ll;-. Sshilder ------- .-

Mr. Tum-m -

Mr. Tracy ---------- --

Hiai Goods ........ _.

THE NEW YURK TH§?SForwarded� by lee York "&#39;1

�U6&#39;i �

K , / I. /4 .

:1�;

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Page 38: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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"

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�~E£ :: �-��-�_����-�_- }�r~� . �-...._._ .... e e-- _-.. -. _o. - -. ._...._. _.- .,_ _.. - e ....-..._--.--._ r....,....- H. ....._..�. . ,..-. ._ ,_._;me V :_ , W. &#39; &#39; -- 1" - ".>�___.=:.n� -&#39;x;� --. IA f i +: * . �~ . .. - n &#39; ~ I

_ _ _� ;�_�;__:_ ...:1�:-- - � � &#39;_�_::4 HIM __-- - -- *7� _ � _|_ T _ 7» �-- ;* �:7 » -�~*&#39; 77 7 - - �-��- -�iii - -n--vi-qi -. � 2 V iI v. ,.,.:,S2&#39;.&#39;_u1�Z5IS@$�iS--- 4»--4. .&#39; -1-&#39;--n 5�l�&#39;" e Ti-I-P-_

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W� -�4-92. ; . M ._._....

. i .1 Ki Alcatraz_ _�" "_ " Coon-iebt ma.

BAN I"RANCISOO�-A sordid versionoi life In Alcatraz Island prison inBan Francisco Bay was told yesterday

- by William Henry Ambrose, Iormer&#39; narcotics dealer who was removed for

Aleportotion to England.-Ambrooe told o ltory of o prison

of almost eontimul silence, wheneven turd ehoroctere like Al Oo-pone, one-time l�;�nieo.go Vice iorli,ore �burning op over the role: lhlregulations.� &#39;He revealed that Capone, �rst oi

America�! "No.1 Public Enemies," hoebeen promoted to prison iibmrian.

I �Capone hos been thrown in thehole three or four times for talking,�Ambrose mid. �Not e word can oe

- spoken by the convicts in line, It thetable, It work N� in their cell], Wetvt�hHoih-once A week-an Saturdayll�emoon Irorn .1 to lzlii when we

"t"

-92

e *-� -L. ..,...;-;..;:...;....-:;T &#39;-"" ...-Z-�"5�*;--"&#39;"-" **"i?7?-~*:&#39;-_-4-ii-=--=hZ_ _.i- � "&#39; 1_-_---T 7- -- -; -- g_w �� -1�: � � -�-�%-er 1:5"

~

__ ..__�--M _- .--_ _-- -ml �ASHINGIQJ Ens --

.... - may 14, 19:5

3C<>nv_i<=f 5eY§T5iIhk�Ru1esi&#39; *by United rreu � j &#39;werieaiiowed out in the yard.� &#39;

".I&#39;be guards try kindergartenItal! on prisoner: who ore lop-posed to be the worst in America.Billy rllel like thllt

"Li you leave bite of food on yourplace, you lose one meal. So ifyou take a Irankfuner and leavethe lkino because therire tootough, you one meal the next

lay."No radios, not o oingle newspaper.

You em buy meguinee, but theycome to you with page! end orticieetom out. Your letters oome to you

92 censored mt! retypecl. Out of e three-pege letter you my |et dz or oevenlinen. .

&#39;_&#39;It&#39;a the only, "renting thinn-gu-ct {ll [robbing the enieiy tutorc romyoujultuloonuyou efinished mmng in cold wnr11-�gt

1/ V

m; Ai ~�----W

Mr. �l�oiooIe.. -.__

llr. Bughnun -...-Chid Clerk -..--__--.

Mr. Cir�; .-_..�.&#39;......Mr. Coley ......... ..Mr. Edvard! -...-..-

Mr. E:oo....---......&#39;Foxwnrth ..... --

Mr. Hlrba .__........Mr. Joseph ...-.. --Mr. Keith ....-. ..-....Mr. Letter -..........

Mr. Sdia�l _.._,,.,..ii-Ir. SchIhtor.-.....-.Mr. Toma: ........--

Hz. &#39;l�ne;.........--

92�92

I

oi� ...-...._.....----on-nan

.. ... --nu up-one

~

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Page 39: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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-._,.-: ft�-&#39;_,92r�.,"_ff,.&#39;7�."._�.

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1+.� f.;.4 - ~Il- -_»-we &#39;

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[fa&#39; Search of the Treasury Depar*- ment for funds and other asse

}Government is tis�ed it has col;

LEVIEHABAINSTurvuumnis-inGovernment Seeks to "Cullenon Pre-Repeal Chicago Beer;14 Henchman on U. S. Lists&#39;11» Iirstiliederal-Jnove as noi-

lect revenue "taxes on"1;he bussstream of illlcitbeer which �owedthrough Chicago in the herds -.ot �Bcar1ace" A1 Capone _cam &#39;today with an assessment &#39;_ or;QLZQJJQO against the Capone sang:

Certification of the assessmenagainst Capone. who is now servin: an 11-year term in Alcatra-Priaon, and 14 members of hi_band, was made by Joseph Law_rence, administrator for the Attorney General tn charze of taxesand penalties. ".�That this be followed by

additional asse tnents until the

lected on every drop or Caponebeer was Indicated by I..awrenee_He said: t &#39;

STILL STUDY EVIDENCE __�We arestlll studying addi-

tional evldenoe. The assessmentls d alnst 1e.sa41,§&#39;-= being ma e asba ls I beer which we haverre o .established, was handled by theCapone gang."_ _ .1.It each or the 15 members o

the sang pays his-proportions -share o the $120300, whichat the rate of 86 Per barrel, h .will pay" ss,o&#39;r1.s:. Lawrenceadded: - - ~ -- t

�Of oonrse. not ever? one of "_these|nenmaynosrbelnaposltlon to pay. If each ean-

not meet his share, the one-srho has the largest assets mustbear the brunt of the penalty."

FILE ON PALACE &#39;

as been carried on sineapone&#39;s conviction. Thousih th _

I vernment has �led a tax liengamut the riorlda winter horn:

..|-

.3:

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Mr. Cie[g_,Hm Co�ay!.l- TA--.-.1-

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Blrbe _........

Jonah ......

M-I�,Hr.Idr. Keith , ,__;__

Ir. 7

..Ml 5cheid£....K_318- 1�ssnm...--......

. &#39;l�raoy......IMF Gamly ______ __I_

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Page 40: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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.|= -.&#39;r-,_- 5�-- I,T: -. - �I , -; w h us, -_ _ - � &#39; ~ � __ 1,, _ - _. - _,<..£ _ ~

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-rw� ~:--i-nlnm; s-1: " . . _ F--- -. &#39; . __ __ _1,» &#39; �=;:;=< &#39;*j.I.,&#39;.n. _&#39;...�.:. &#39;v*2""_&#39;>;.o~ - "__::-___v_N ., - . �$1.. _... ____»,,_;;_-_______.nAn,_ _.

§h%&#39;1T¢�-_4--_-He

:-#l&#39;ii»i-j=%&#39;i= .1=-=2=="=*.-?Yh9¢j.t-*9?"1-¢;14mm,&#39; �aw.�2151*!" -=1-:><r*=-112111.�; s=.¢.*=.1&#39;..�1°f."1�I &#39;he pa-oce|s92|erver.. int; be Fuel! F�?-41¢ .G=i?=&#39;=.=1*?=-=&#39;**. 19&#39;.-.¥}*°-&#39;!°°;_?***.

putment oi Justice,&#39; y"e";".£1":

�ine beotua he �lled in oenort in

e -":,-31W ,.,..-"Pme .m°n";=¢.�9§fcs1n&<»--h_;equeIted. ihroulll 111%

ll"-|fo1;:92|Q-4@IBl�l- wk�--1.-1.-.t whinh

lflempt "to -eolkc�and asopioteo by civil!

I &#39;5: hosed . ;Il!>0!� Jlnternalyevenue taxu on lame IL000 -hlt-

4 oi known to

oeticn

$e heed manubkhltld and soldhis dloate -between 1921 and19:2. � H1� or the barrel: counted

Here teporied in roidl or seizure:In um period. w - - ---4-Capone&#39;l hwyer, �Richie! 1.3-g92henrn,- Illd in Chicllo that hill;-client is �tuppooed 10- be brokefiiT�owever. Joseph Lawrence. ed-gxnmiztntor ox the Department or

_§Ju|tice�| to: �unit, said thet the*Government might collect the en-

mob who� has money. f. Simijnr actions lIl1IlIt1_ otherkingpin boo�egger: have �beentaken previously. Amonl those

bueeesed were Irving �Waxey"92-Gordon, Mu: Healer. Houir Green-�berl-anLH:i=I WI1n92:._Ih|:,.�rl%.three, Ieaderi of e New Jersey-Y�g»: York ayndgzf-e, were unused. .51-7-my--I80. proof gallon: d;111ege1 alcohol ebouP&#39;IWU"?l_bnthl

. v .

_ _ r -_ _ 8.-: .I 1: .¢k 1 ¢, W ~ f 92 -

1, 7.3.; ,5 5:- e "=;-&#39;- r, ..:.. ":Laf&#39;-&#39;

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ii?�. . ...;...

Chi-!c1¢Fi _h__......Ir. Chas -------- --�r. Coley. ....... .>...-._..- -Mr. Edwards &#39;

Bx. Foxworth ----- --

Mr. Hotbo ........ -- .&#39; Klit. Joseph ;H.r.Ke£-th .......... .. _

Hr. Lcs1.�r-----------

--- " - � Mr.

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Page 41: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Page 42: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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kapone Is _Bl_&#39;_l80�, Qtbr�qad,¢§m;¢:¢;lf;i;;1=&;f�§.;;re* marge e�1§£?n¢p&ea;i�en¢n1» &#39;;B#¢ket=e;c1§tr�mdktiaaWitrg Ba .-n&#39;@n:Ia1ions+-&#39;.,._l_- 3!;;__7 H -Bul_He I8 �Bui_ninq}iUpIT_. 1,.,,-_. ,..� .,.» 92 _ __ ..§*-- � &#39; " copm;m.�1_I3l. by uu onma . r

%�= -1SAN&#39;FRANCISCO, -Aug.-�.l3.� A so id version of lifefin Alcatraz Island prisonin San Francisc y was told to--tdayeby William !jIcnry92Arbbrose, former n� r tics dealer, whowas taken from Alcatraz for deportatio .__o �England. *He&#39;nerved a "year in the&#39;pris0n. 7- é . &#39; - . .&#39; r Ambrose "told s. story of a *p1&#39;is0n�0� ost continualsilence, where even hard characters 11k 1 Capone, -0ne-tice_Chicago vice lord, are �burning up" er the rules andregulations.� _. . e &#39; _ "

E -The prison-imposed silence rules, perm ing the con-�-�cts to tllk only once i. week. lndt� * _" � ~ �- ��M �nmn -mots" °� Mann� ver, "is burnln up It the restric-

&#39;m �"3 h�"l°.&#39;t&#39; to be� °f glans of that catraz medhouse&#39;e__prtaon7regu1at.92on§,_&#39;Ambrose he Sam 1 _ , c. ._ &#39;

I _H -reveuled that Capone; �rst of "wh°°"?1&#39; -91° ¢° 7" Vb�§:r:1ericI.&#39;s �Ho. 1 public enemies." mid that $11!: ll his mgr! One� been promoted to prison iibra-,1t was a ute � 011:. M13 ,riatz. &#39; 1 � .&#39; he added. _�.A1 not clicking 1.1;! &#39;I&#39;lae&#39;lormer Chicago gangster how- underthe treatment." , _ _I

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Page 43: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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It has been sud that some>&#39;_|good is in I11 evil ind some evil&#39;. in all good. No Americnn can beEiiarticulnrly proud of the pie-l. ture on the right, iiowing Uncle&#39; Sam squeezing out profits {mmI� �bootleg-gers, racketeers and other&#39;_ -criminals. _ _ &#39; 1__ .

That this Government shou�l interest itself in criminals and

hunt them� down with �G-men"ONLY when those criminals havefailed to pay Income tax, divid-ing their criminal earnings with

»

with evil, when told that lawforbids Uncle Sam to interferewith criminals within htate limits

5 unless mch criminals owe hiin1 _ money. When they do owe himp money it i possible for the Gov-H ernment� long arm to reach out

and gather in delinquent taxpay-� ers wherever they are found.

Such ranching out put th� �ch-crimin , Ca one in s ee . eepdown in EH1: of AlcatrazP on. This. makes it possiblefo the Government to hunt

- ra eteers in my city where� th fail to "divide." A strange,

bu s useful source of income.

UncTe &#39;Sa.1&#39;|:i, mm�; Tunbelievnhle. _&#39; Yoimée the good n&#39;n§ue¢&#39;

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Page 44: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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-=, &#39;f1t_._inlc_l�ernekesT.0§.ol_:ber�y. ragweed.line _9292ras=aot ut&#39;non1"�HtUee ttstedln �theseiaolumns-last January ascertain to appearin this glorious year of New Deals and neweverything that we have every year. Our

- system Went wrong. The tea leaves did�:�not reveal that Mr; "Midget". .Fe1&#39;.nekesiE would io soon become weary of his retreat

at Joliet and resume active business.~ From now on until Ivir. Fernekes resumes

closer relations with the law-eniorcing au-horities his name may be expected to ap-

ar in the reports of every crime present-ng difficulties of soluti n. 0 t of J l� t0 u o 1e ,

___ Mr. .FEl_�ht!l 8S =wi1l_tak&#39;e up the burden laiddown by . Capone when that illustrioushoodlum le or e&#39; south andlater -tookup residence in California. It is a neces-

. sary job and Mr. Fernekes is just the rnanfor it." Lack of ii drarnatie and mysteriousgoat to assume responsibility for unsolvedcrimes has been severely ielt ever since Mr.Capone went away from here.

When ggwas among us his name wasmagic gilt to enliven many a dull police in-cident. In addition to building the pyramids,striking Billy Patterson and kidnaping Char-ley Ross, Mr. Capone or some of his sinistergangllancl henchmen stole the baby&#39;s pacifier,chased the family cat and, according to the-ory, committed every&#39;crime that stumpedthe police. &#39; &#39; . &#39;

Later John Dillinger qualified for a briefperiod as the omnipresent omnibus oi ban-ditry, raiding banks, grocery stores androadhouses at all points of the compassand at all points on the dial of the clock,simultaneously and serially." "Baby Face"Nelson pinch-hit for a while after the "G"men rubbed out John, bot soon there wasno "Baby Face" either.

Now comes the "Midget," tripping outof the long house at Juliet as blithesome asSadie Thompson in "Rain." And aren&#39;t the

"&#39;t&#39;0pp!fs and the head-hunters gla¢l�!""&#39;-"&#39;

CHECAGU DMLY NEWS11.. .4�- - J- 4.....0s..,, .�

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Page 45: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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ouiémo HERB"?-.;..f0B PRISON BM.-L IBM&#39; �Pi-i_m&#39;chioo, _-&#39;Ca�i.&#39;,&#39; Juli I

"-"-A! Capone&#39;iwa&#39;s-*deai:rlbed&#39;he:-e]totiny n_ too hard tor the m� ballteam organized tram prisoner: in�

catraz prison; . " . EPrison ot�cials declined to com-i

&#39; ent on 1�ep0r1.s published in theibronicle saying Capone had in-

the wrath of fellow prisoners!ause- he tried to order itherni

bout as though they were mem-&#39;rs 01 his notorious Chicago gangf

of the Prohibition era. - &#39;;Capone, serving I sentence for]

income tax evasion, was reported;also to have been visited by hiswile and their �son, who wereforced to converse with him througha voice tube. - -

Official Jl1�!n0un¢ements trom theison for �incorrigib1es," 1-_mi92¬olt in San Francisco bay, ha;n limited strictly in rout�tiers. .

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I _ ,7," ,4 . �-b _ I I &#39; VBAN FRANCISCO, July 2.- E1-

- Capone was described here today �too hard -tor the softball� teem 1*

�organized _fl&#39;0m -prisoners in Alcaqprison. O�ielals decunel to

"1-��i�t an rsrm�-. P.-zbllsha :r.,.,$0 Chronicle saying Capone hadalncurred the -wrath or iellowj �pri-koners because he tried £0 order?� hem about no though they were�-inembers oi his notorious Chicagoigang. _ I " 17 Capone, serving 0. sentence for in-

ine tax evasion, was reported alsohove been visited by his wife

-� eir son, who were lowed to -

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Page 47: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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. &#39;2!�-.!»",,"? i�i �¬f@=Y-�+i.-&#39;,H&1I1�!s -in -{§7e&#39;m:oeev . ;

Mr.Mr.Mr.Mr.ChiMr.

Mr�.Mr.M1�.

Nathan .. HT055011 ...... -- �Backus ...... -- PBaughrnan ._at Clerk _____ ..

c92e:.&#39;:.-.--...--kCoffey .....---EdwardsEran - -

Mr. H3rbo.....----Mr, Kénth ........ ..

Mr. Lemar ------ --

MrMrMr�Mr

Hr

_ Quinn ....... --

, SchHde!&#39;------, Smith ....... --

, Tarn�..-------. Traci! ---------

Miss Candy ----- --

I _ �I-= e &#39;. "r ~

&#39; ";._.�*",_.&#39;;� �HQIHQ Q-. - .--,_- _&#39; ~!..I. "�_::-1-2---r.---92-5�, _.&#39;_ - 1��W50�: lint. big" 3 *

umgez ,0» t-.51 11!?�§; lme� eurvivorg &#39;0! me�-em� %e �:yndicate" nnutl-e92!&#39;¬92l gue-1-. 1!92s= .2»;-.1. .":-W-J� .1.-~=-= 1Qlel�hf �V1Ic0unt&#39;Hllt£B&l!� miurll 92_nUq�, "Tile History if 30011;? �I�,� completed the-_1o92!rn_qy

laden ta .�!:P$.g-!.92. _�"&#39;-- 1�For �aere�in the Qlillll-bf the

re eiu �leerhee Al":nee92£� I;ite&#39;lpllS. yellow tie, pearl tedore.ck lzlgur--with 4 mwnmnéue 92

bed darling drepedgn my left;e. .- _ ~- &#39; .

8&#39;81» amt no am�I-. A1 new gave a eumhie -

m-nmeee-t...neweua_1:§*her I job yaihlnl jhll�lween. :1-.,_

- uch were the bl�str t�mlimi&#39; �the -&#39;.::de:&#39;!!e:-Ii �She hey! ell-�ied, however. that the rut of the &#39;cture ween&#39;t no bed. �It. show:ekeukea. In-Jerking, rum run-4

_ 3 Ind lame pretty hilt hlll�llnl .qt!-gum �and �tomm-iee." .

-LL: �ue oopiee� �an-lved&#39; �It -wasIeerned Iut nigi�. iint -the _orig-

_ 1 p�ntipg nm-�hem an all weemu -in-ma �in-.ll921nl in

nement Mr at the Glencoe I: eJame; ll. 11- Glaser, lrela b &#39;, whole neat Vllnount Hnltl: Guring the 1283 W":&#39;1£&#39;:_F%&#39;-.

IE1-,re&#39;:*i-=e=v.2-&#39;~ &#39;=- P.-l~.t¬é-�-&#39;E�5&#39;i§i&#39;.-av

T x s/1 _£}-Ih--&#39;.-�rs.92-F ..»> � -i.-"Y2 1 &#39;

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Page 48: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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�" - :;__ :,; 4.-.- -1� * &#39;-I ._i__..:: M... . _ _ _ .5. __ __ - _ I~ _ __r 4 ___lr n-1� 11:5"-J" � *�� _ �"_&#39;-5.? �v���� � �- _ 4&#39;92�l �� �

__ __ K, __ 1. _ _____.__._..._..._ ._.... _.._. .__ _ �_._.._-._ ..:_.f_:____:__ __:__r.._.�_._...___ _. .__�__ ~:§:.-:...__.m_ Y.._..,.__..._::_ ._._.__ _..._ __--.*._-A _

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__��%.:-=.;�_*�*A_._-&#39;¬-~_; iii;-:%_;;� 1-�� �_ *3 it! $1 7�;3§_&#39;:_-77: _.:=~ -� - *- � k � � -

- _ --p-..~._ _ __,_ _--._-_..-_ "M-_ _- -_ .---». __ _. .. ._ -__-.

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Page 49: FEDERAL BUREAU OF TNVESTIGATION - The Vault

W_jq __W ___%_ _2 L_P j L t:__3__�U1&#39;__4_*W_IT__fW�__-_nkH__A_H¬ESEC____i _E_M?Tr:1H;V_�_Q_�J__E!3 _: _ mi piA_:__�___I92_&#39;_.n___%_______HQ___ _ �M:L.1�! _=___�_ _ _ t___l I __ _4� __ ___ V _H __ _ _ __ I J _H Q _i u fa I l __k _ 1 My �I H I L v _ _ _7_v_ h_ I � q L ,� � _ _ _K L _4 __�_ I _ _ W_� � _ D _ _ T 8 _ ____ r __ _I _>_ I J J _ A_ __. __ _ _ �_ _ � _ &#39;__�_ �h _� __ J _�_ ___ _|_ q QH-L.� __hE" _Y;_ L; 4A_ _ __ _ _ __ _ __ _ � HH___ �_ �___w__ __&#39;__ � &#39;M_�___M __ _h__ V; _ ___ __ ____q _A�____-m___g____________�_ _� _ I _ _ _ _ _ Ml _ _ _ H _ _ _ V Qggn u_______:�__g SW85: mg___�__ O __ M _82� E _:c?gm_� __ __"___ Hwa____z__ W Q_§__ _ _ _ > __$__% � B____q__g__§g___Eg J_h__�____w__W____�u_o__gg_d_ inn _�_3_�n__ 5 ___gn_g___ E1 aw? pg _�_ _ __ _ ___a _ gqa� ___3; 15 8? gm; u%_2_%__�m 2% u _�__;_§_8_ ____=§_ �_�_____ ¢_°_ymM&O_ ________i°__ ai_n�piw�gmi_MMst�l_ _I _:_hw_r&#39;§m$¥m£EH__pWw�m__/_&#39;_&#39;____�: _�_ J _ P_ F j t __ I �r.-,_92 . _r__ if_ ____� WM___ _ _�f .___ _ a :1 !.ag¥_� _1 ___&#39;_ _ _�_____� __ in if _ _ 1 __V W _ �__M_ H_d_ . :_ * _ _ _ _J �_____�_:: �_ _ _j *3r_:M_ � j

Page 50: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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4&#39;".-P . Iv"!tn: "�fdui�juwh� __ d I04 rl n I �lillltl, �in his �I

*9!� . �92_ll�|!"O_;g&#39;|&#39; _ &#39;35-" a+i�fll "� _ � &#39; &#39;2&#39; Ii Iatinuni "D1011!-&#39;0!� _ - Gs� i§�:�n pm km.-e ma -"f�"&#39;","&#39;°�°" ;� Q gcawling henchmen �in _ill&#39;5&#39;i-

und. their hand; thrust omi-�92 uily in their poekeu Avnlr�tly the 92

erll mu: In about to bunt. 111%0 The �Honda &#39;11 lfrithf-IIIQ 1�ha awn: ummt nu cull»-1=�I-3hll pocket. _ � _ I

* Hciuren Bpotlul I1IlIIh&#39;I&#39;- Vi; �_u.rU.n3_l,t =5» mt. tin �pgrll wave�3 murky waterfront noun with 1 ghost Hjphip riding in the buzkgrulll� and �ve 1�%-aaky :e&#39;.::&#39;.a.h..euQ 92I_1.:l@_ldlng lack: of 1�iqonn-�bani wmnky ta-om -1 lvevd� h.unch. Otherl. cl!!!-Chill l_9292"°|"¢" 92�jnnd p lublnlchinl gun, an apparently1-nun; at an lttackllll BUM! unriv-; The yolk.-4&#39; an annual. &#39;htIwever--

�wa at we-r., &#39;.-.= :. !&#39;esh.ee.t nu; theItnra mm! Stripes wlyvl-B H U16 bI�¢@l¢_-

Panel: show throe lpedtqsy Joann.nd than the panorama, tqrlll :&#39;92�&#39;I_1.�ith huge trucks 1u§nberln3_IJ0I1&#39;I "IQoonli: muntrylldq gm! grin

lien "Dialing _uT:? it ii�h %=1&#39; "I!!!Jtommyguns. Three nlrphnol mooLion ovoriaud. Ivel1&#39;Lhl.n£.llIl92ell�lLin in the district-miimht �u mvl-Iran

_§p|-nu d1w ¢&#39;�m_."92m r_� The whole work of the� -il�it ll!-

pl&#39;i|I-�I191�! ulull�l, wan� gun. ��an is tug� tbip-ipcoufzt

or1u.I!eunip__nt:-_un._; -.�.1t In hater I.ll"f___�f�. =�� !T "- -�vulva-tn 0 . � _ _" lanai� il _ -- f�*

I l&#39;- r � �~»r~»-5. &#39; .� u

" Mr. Backus _____ _b

_ M� 33!-l8&#39;hman_.

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ch|�f ClQrk______

Ml Co�ey ,_______M" �WardsMl�. Egg" ________ MHr. Harm;Mn I- elm. LesterMr. Quinn _________Mr- SGhiiuur______Mr. Brril�-| _________Mr. &#39;l&#39;Amm.______

MP ClassH

? NIH Tracy ______

&#39;I- �_~u4r-�~qg_ __

¢

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2S

~.rr:92:~ ; 1.-~11!�-i� IK-wk .

f » APR 2 1911

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I=-the G&n<1y_______ i

Page 51: FEDERAL BUREAU OF TNVESTIGATION - The Vault

A.-Q _ V

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2-+

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�L 0%

*:� .T.&#39;¢?.-=?&#39;_#;.1ea,.¢=;"

� � � V � �-*�-;1-�.~$?-_&#39; " . _=

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§" .. � r 9_. ._

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7 gm: um rmW:-in-i=m=&#39;-�u-=a" .

_ h�erllueoemrl. 1 �.

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drnwhlk pug lord�!nul92�Iof�llGlW:rn-

inmml qt dun nplnntQ-�ll: on till Ibdu-1| �

u the Government lndnumpromtnld the $180,406

%!,�U."|&#39;B, I Itttlemenlx

n Oil! marked "DO¬l:m-" in the hiker, sppan-I

qua jvutierl InIntcrprhc. The page

noonbd I diltributlon of

"row: paid $0,531.42." ,gal Pd; gnch nnuivod

Qoualn�y um ml-M1In-hi. J I: L. Iawl

Q9: �B1�. $5,110.13.lodge: 1-aw:-dud the pro�t:

maul. Wlrldnt upluil md�u �Hart-horn: amok:

hum I87. 1026. in_Il.l bullnoi, tor which

neon! nu hut. lnclududhnnqmnl guns. dice,jQkI1�,�.l l|qh.92unM and �

51- Ill b�llnalatbl ntbnh .

,,,.,_____-.-J-»--.--

-Nathan _____ HToluon .._.._..Backus ...._.Bnunhrnnn.

sf Clark ,.....CIIRIH.C0l"fey_.__.___Edwa.rd|�._..EI&#39;i|n__�.. _ _Harbo...... .Keuhv.--......l-eater. ......_.Quinn. ....._.F-phllder. 5|-.-ma .�iamm_ ...-.._T:::v . ,_____

_1n�1_,____

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Page 52: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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_ _. _ __ _,_ 5;," _ _ . ___ �__:k~ 1 # -it -=:i*�"""-"""!&#39;.&#39;" ��"&#39;�� ~2_e_ee--- - -----i- I-_ W» , ~-*-r ~ &#39;.�~.&#39;*&#39;-+&#39;� -,.~ --~_-- v - 1 .- er�-:==4r-~._ :."- I-:�� ; �- ___ i L1� _ ,,-;_-_�é-- � ~--;_::&#39;;-_f_ ; . 11-_-_t+92-nsgj �-3- i-$1--�-: "3-:3-_~;~&#39;�&#39; 5* :-:;_:~_&#39;_*_-�_-&#39;e-�&#39;_-- "".�f&#39;:L""�f"�&#39; __

�&#39; � ��� �_� �_� �4p_.....LI� =�� _ - ��i __� - _ �_ _&#39;_ lQ;; &#39;_Q fw 1 "WT Y-21...? -:�...&#39;.&#39;:.;;;.�~" W _{;__ . .,Lm::l

, ..

1- " � .".�§". H"�""-"92

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kiwi--, .--~ -p_ ___ __ ___,,_,.-,,___k -�"3 fee. .&#39;_;lr;1;l:....,_ t .. e

nll�mi cmma

T0 $220 980ii--n�-

Al Capone he agreed with theUnited Btatee government that lieoI&#39;I&#39;�!V.1&#39;l0indilP1.tted income

lo: tn» year! 10:4 to mo. BEEF:� An announcement an-I made here�yesterday that Ipecial attorney! torthe treasury department and oonnael

elaimed by the government|t:2.uz in 1:20.980 i

A Pllblie heerm: on §hpon=&#39;a eoveel11-om the government lewoet forlo-morrow before Judzo J Russell Leech

lot the board oi tax anneal: was enn-

lneiead Judze Leech will return

Z tier the former have alrw�| | I _ K stipulation: reducing the

u&#39;!II&#39;�"r1ifrom �Washington Holiday,e government will then ask the

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it _ _ ,judgment: be entered etelnat C190!-loand three other gangsters who agreedto stipulation reductions last week.

By entering the atipulatlon agree-mente. Capone. through liln attorney,Michael Ahern, admits only that heowea a certain amount oi money intaxea. Collection of thin illdlm��lmust be madejay Collector or InternalRevenue Carter Harrllon.

It was conceded by government oi�-�eiala that collection oi� the entireJudgment might prove diiilcuit. be-cauae gangntera rarely have visibleaaaeia. There are liens enlnet Ca-

e�a uity in hla home at Miami,e. it in laid. would wipe

eufnnxy a emllr-nrrr1t an indebted-neae_ Agents or the investigatingunit or the internal revenue depart-ment must ierret out hie other llleta,the o�lciala laid. _

The elvil tax ease againat Caponehas been investigated ainoe pecemberby Elden McFarland. apeclal attorneyfor the-treasury department, and hisaleiatanta John E. lliarahall and Bor-ne-rd E Daniela.

They had lone to [rent lengths,obtaining depoeitiona ti-om 21 pereonain �Florida, impounding the books or�

believed that Capone�: ouunael agrelto the atipulation to avoid. not qnfthe expense ot a. lengthy hearing, Bturther revelationa ct the tannerlonra many llletl-I activities.

1 The atlpulation �xed Capone�a neii�income tor the air year! at mam,and the amount of taxee and penal-tlea at $220,080. Capone la In Aloe»-tran pl-laon, serving an 11 year len-tence Ior violation of the income tlaws. Lent week atipulationa reduoirl�their total tn: claim: ��m $1,251,698

former Capone gambling houael and�other illelal intarelta. and aubpena-

to $529,062 were amen to by map�:Capone, Jack Guellt, end Jamel

lug numeroul--batik-alerita. It wee;___, 7_4f__jq�* ii�, 7"

Mondl. &#39; i

t ,6 5� <&#39;/AL� 1&#39; <»-92

Page 53: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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i

I&#39;0-z&#39;c&#39;EAz1Abi:vl�vv1?TO U. S. PRISON;

CAPONE HOODLUMRocco De Gr!-zia. l11¢Bed OI-P0119

�hoodlum, surrendered yesterday toted States Marshal William H. Mc-

nnell and was thken with I5 otherp oner! to Leavenworth penitentiary14-, begin serving e. sentence of 18months imgoeedmecently by F866?!-1

_ __.,. . _ ,_ .. .--. __ _... .- ..-.»_-_� ,Judge cmr1e¢"!!.-&#39;w?,&#39;6u_&#39;wara �tor m-come tax eVl8i_o_n. ___

Among the others token to prisonwu Paul Leo Gorakl. II years old,alias " Dr." Paul Wagner. G-orakl waspentenoed yesterday to two yeu-5 inLeavenworth by Federal Judge Wil-liam H. Holly on chlrgea-of violatingthe Harrison _ otie law and imper-sonating 1 -3 rernment ollicer. Hemended unity-

Gonki was nrmated in Januany,1934. at 8205 enewood avenue alterthe state department nf reg-ht:-a.tion

,4¢.7

04.1.

4,-

&#39; ;."&#39;.�;?� .--__ &#39; &#39;----�--&#39;�� - 1"..-

�?¬.-_�:.:I_-_;"�_-":;.;.&#39; &#39;*&#39;??"&#39;.T£�-l&#39;�li"&#39; *�"7T_-3&#39;e5-7 _-Q 5; *&#39;iI.*==�"��*y1_ -4�--1l�&#39;�* Ti; �?�_5�:*"~ _ _ �ff _l � �J ___e_...__..-n " &#39;_ °&#39;"� _-_; _J:;1zi;___*�--��-�;i_____?_ � Q;ii: �e �Q-T1i�elZ;:&#39;é&#39; < .-I: - -1,: ,~: m.1&#39;b|»n.-....._t;

Mr.Clo|I.__, ____ __

�-&#39;, "&#39;1 59-I-lIhmnn-.&#39;1 , _ _ cum c|.1-k_______i Mr.ColI0y _____ __

Hr. Idwnrg, _____III�. Kiln __________in I-lav-bq_________

4" M1:-.l<elmMPH; Lostlur _________Min-. Qcnin-n_________-vim. Sqhildgr-______

*�T7-&#39;.&#39;l_B-!�92=l"|&#39;l _________?"- T:&#39;.&#39;_Cy ______ __

-3->5 -.&#39;;.;:1cty

-- - -»- 1 1 _f,&#39;<:Q_ -.&#39; &#39;_~=.::-3.1:. &#39;.:T_S&#39;.1.--and education had complained thathad practiced medidne without ecanoe. He was convicted in Its.court and lentencad to &#39;|sf.:_m0nl&#39;:h.! {Xthe county jail in this cue

Assistant", United States Attorney,Mary Bailey told Judge �Holly yester-day that Go:-ski turgid the names oflegitimate -doctor! to prescription; in!order to get narcotics which �he 5 dtn "patients." The federal in! -sonation charge grew out of G0 1&#39;:representation that he Wu a. mom rot the army medical reuerve. _

. &#39;

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Page 54: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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- 7-Tn cO1&#39;f &#39;y H______ �-

Mr. Edwards f

Eran ,, jf� __ -

Mr. HarbQ_________ 5M�. Keith __ �MP�. LF92925,{ef _ _ � rH

5 jclr. L31 Tm _____ __ ��Ir. �miner-___ __El!� _ � I

;= ..;L.M "-�I1 l __.y _________}�K f--=_».- Gunny _____ __

LI &#39;

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t�epqrt Mn. Qaponf���t_ - - �- n

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The Chronicle an Hm A1 °�P°"° "nvmg In the am I":-anciloo ha! aw�on under an uaumna nu-ma 1-0 Mnear her hulbmd. the to:-mar Chic!-frgangster. 019011! �I l°1""m� "1 &#39;ea: aente�noo on Alcatraz Inland. 1

uump� yfoofn PEI!-R-Q�llworrlgiblel.

Mr� 18 -�-~���-�- -4--"

�Hi�? 3!�-I8hman..

Chief Clark ______Mr. Coffey ______

Mr.-Edwards _____M=&#39;- E-can _ _____ __M-&#39;- Harbo

MI�. Kelth__,__ ____MI�. Lester ______ __5923I�- Cum.-1 _______ __Mr. Schilder ____ __Mr. Tamm

Mr. Tracy _________Miss Candy _ _____

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Page 55: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Mr.&#39;1&#39;UlIHP_.._...Ir. ClQgg..........Mr. Bauihm�� --Chlof Clerk -...._Mr. Coffey ...... ..

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ANllST�Elll§ETS4-@__-_

- ~18 llMlNTll TERM

I iifllll TAX EVASIUN. . q-_1-_-1-1--

e Grazia of Old Capone» Mob Pleads Guilty. &#39;

4, _i__.__--

Rocco De Gruia, once o. member ofe old Capone gang. was oentenced

to 18 m�nthl InLeavenworth pen-! t e n t I I. r y and�ned 81,000 yea-urday by Federal= udge Charles E.

oodward on 1arge 01&#39; inc�me

evggion. D8rnzla p I e o d e 0ilty ond admit-

ted an income of319,932 for the3-can or lit! and1030.

De G r A ml a &#39; obrother, Nlcholu.or b o p 1 e 1 d e d

ilty to Achlrk�-of tailing to �leincome tax re-

*_

ll

o oi-l of

H0000 DI GBLZIA.turns tor 192! Ind 1930. wan ��ed- 250 and placed on probation for one

28.1�7 .Conviction of De Grazia left but one

major �income tar cane for trial. courtaches pointed out. The defendantthin cllo lo Willlom �H. Malone, tor-r chalrmon of the Illinois to: co

l. lon, �who in reported to be n I -,1 in Germany. /-�

-I

. 5 --1*.� .92 .�!..�,.l4 92- -»=; -betgndanto _.ln Eree.¢tlIq� .l= --- ptbmlooel jlloom-&#39;. 11&#39;. �tony 51$ 1&#39;08 zmpln-s-y� jfam� I 11

_&#39;e,|:n.ox ehier, who 1rl;i_looi_:� ll-I-hi&#39; l &#39; "I83Ch�ierton. Ind" ll. . 3:&#39; &#39; no Rosenberg,� pa~ou_:1n�.11 Aida!!!�in the am word.-ind ,@�I_l .�a.loy,,gap: or the lotion&#39;II_!�lon,|E5ttodol-th� &#39;.&#39;,"t�~ -_"Tho jovernmellt woo bronuing tozvagor Indictment 11 �!92low_bor_ry at

0 lle.92yu;Iln1nJt_.Q�odh:r92hy.&#39; o 1-orucharged vrtthtn�uretbpoyouxol465.000 tor the gear: ofllzi ma 1930,-- following on operitlon In �Jinn-

, 1934, qhortly �irt hi lndloinent.Anlotant Atwrney Genera-I Inllle

-- mlter announced yeozorooy that---- goverunient would gibve ogoinstl�is-10:": ootota !n_ on dfort to collect �-1;: qt 881.000, which theii�letm t�=11&#39;gOd"lh.l!-ll6&#39;0&#39;IGd �r tho�-3 _

- m 1920 to 1082. l �_--- j;l O&#39;Hara Ian u Bu iunhao� �-It also on announced-&#39; t the delth or llolofiou�t not

Ilnken the perjufypllo 1¢l.tUt_&#39;ltnlphI - = orgnmler £01-the moving Mo-1

_- &#39; - Imlon. -Unltaé ltltbl jttorneyllH btH.Gnen�ld�n-tlildtoon-|dent or; oouviotlon Ii�siout paoonoo-I H1101, &#39; O&#39;Hara �wu Indicted forperjurr -tor bu tel�mony during thehveo�gauon bi the hdenl-II-nadqlury-- the Inlay tn: uoymeuu. �

In the De Qrulll an Ldotnnm.~ - no sum Aao�zy Eéwff�lnp-1&#39;fltold�zaoourt znoooboummealnratln: 18 handbooks, molt of__q|Kel:_ole Pals. Ibo _ | lttorncr lid." t he d-_ of I400 adpy durlul tho

-. -- ntloned in tho hs�lchnoot andpogo ";motootlon" of $1-I00 o month.

A x 536;�?~/¬~=¢~ /.. PW �*" J?�

Mr. Nathn1&#39;92-..---Mr. Tolson ...... ..

Mr. Clogg.-..._..Mr. Baughrnaru.Chlef Clark ..... ..

Mr. Coffey ------ --Mr. Edwards ..-..

Mr. Egan _._.-...-Mr. Horbo.....---Mr. Kalth .-....--.Mr. Lester ...... ..

Mr. Qulnn...-....Mr. 5chHdBl&#39;.-----Mr. Tarnm ..... ..

Mr. Tracy -.__...Miss Candy -

-_.-_-Q--v� ..:I---

-

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Page 56: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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*1; T-tee; r ;__;e _--.7 2: ::-- e_,e_;_;�_e_~- @-...me ...._ L.� "L __"."__;_&#39;,-,_,____ * �*� -��* _ � � _ _- -- - � _. . ;T_e_, _ __; I r:&#39; "Wl- &#39;-&#39;1 - �l _�=�£&#39;~*��p-¢;=__ ~+;-nib _.4

�_,.q-1__�- -__

JBWNTHSTUH -*|]�P|]N[oMd--eome tn. Rocco De G-ruin was�

.q&#39;, >-In . ..&#39; � -_--�1h &#39;1 e - - 4. 1ii wne gang-�, Because, _ _

-atera, he negieetechto pay his in-

eentenced by Federal Judge Wood-ward yesterday 1.9 eighteen months_1ln Leavenworth penitentiary and�$1.000 tine. .. -9- He gnd hi! brother. Nicholas.pleaded guilty. The latter 1Iva$92�&#39;31-anted probation after being sen-teneed to a year in the Brideweiinnd $250 �ne. . - i

By drawing the prison term for�tax cheating, De Grazia toiiowed.ithe path of A1 and Ralph Capone,{Jake and Sam Guzik, Frank Nittl.Terry Druggan, Frankie Lake and��m0st� recently-Murray Hum-� jig -I .De Grazia admitted Iaiiing topay $203130 tax in 1029 and 1980.- According to Assistant UnitedStates Attorney E. Riley Campbell,he confessed] to internal &#39;1-evenueinvestigators that as operatedeighteen handbookl, mostly in Mei-roae Park, had a H00 1 day pay-roii and paid $1,200 1 gqnth-�r�"1I!ut1I=�UB." _ i .

-1:iughman__�Chief 9|,,-k_______Mr. Coffey ___.____M13 £dwardn__Ml�. Egg� ______Mr. Ha:-bo._____Mr. Kgjth _____ UMr. Lester

M"- Q�-Ir92n.......MIR SchHder.,__Mr. Tnmm ____ __M� TF8-c¥....... ~

"s

__________________ __&#39;: ?

u

Miss Candy_____

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Page 57: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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-21 _ _ "r- *-- L, �, ~A i ---P - ~~- ~~~ _-__,,_ ___ H , i __~_ ti�, - __ ;&#39; _ i ~~ ~_ e_,,,,_ W ,__ ,__ _____ , " _ W.-.-q�;_�_r..�.-:1

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_ . _ __,___ H,__HlmO___ _ _�_M &#39; .-

Mr. Edwards i"1" Elan

I� Keith __,,__ -� Mr. Llltergb &#39;I Mr-Quinn

r Mr. Scnait-|&#39;__7� PM Taré�/7:, Mr. Tl&#39;3L�;y�________5&#39; Mina Gamay _ I&#39; """"""""" *7�?

.._._. -W1; L� _,,

g.E;=§&#39;_-Q-Z�§.&#39;STIM0lV�1"�> IN CAPUNL IA!!

.EVASION PROBEMiami. F11.-. Jen. I0-�- R�!-Dlpolb

.tlone of government witnesses here; n appeals by Al Clpone. tormer Chi-] cage gen; leader; hll brother, Ralph.

IIi

1

gnd his lid. -TIC-k Guzlk. from federalincome in assessments totelini$1,212,695.64 were completed ind-ll"liter 1. two day hearing.

= They will be reviewed by the federalboard oi tn: eppeeln in ChicagoMarch 11.

All Capone, whq in in Alcatrazprison in California. eervint 1 sentencetor income tux evuion, ie protestingassessment! totaling 868,644.08 for theyearn 1924 to 1929. incliulve.

Ralph ans.-ne ie preteetiiig l,.;eeee-mente totaling $311,282.53 tor theiveare 1926 �to 1928. and Guzik, I832,-TBZ fol� the year: 1924 to 1.929.

Ta: liabilities at the trio duringtheir residence et Hleml Beech werelou ht by Elden Mcfarllul.-Ill�ll.....L_

"gtuijner far the treaiiirf 6: .

»- iv� -, e-,~

--.--

92

/. � Li �

FI Mr.

MF.;_&#39;-_:a;__|.:i§r}&#39;_92an.&#39;-chief El;-i<�.�_-__...Mr. Coffey ______ .. �Mr. Edwards FMr. Er-ran _.._......

Mr. Herbo.______..Mr. Keith ........ ..Mr. Luster ...... ..

Qulnn...._....51-;hHder ,,,, ..Mr.

Mr. Tarnm ______ .- iMr. Tracy ....... -. �

� 92 _ , -. A A __ _ _u____ r 7 ��t � __.. ,. __..

1 Miss candy92w.<>>

Kb92,

Page 58: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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e JV Mnwéé H;$j§;ag_l;$;x3�:a;# F~e~wc�;mW_=&#39; =r--w&#39;-=f&#39;- *~�tj -0--��v� .-0-1"-Vf*"* i ____v . 1.; _ ¥:;__ -- ~ _ &#39; *"" �W-&#39; ��-�-" �Q &#39;,,,e._ &#39;__ - &#39;7 " " J:-4&#39; &#39;-7--"� .__... ... ..-.-e -- &#39; �-�<--_�i::..*.,;*__-� - - ---- *+*��--&#39; "&#39; "&#39; " &#39; "TH .&#39; _&#39; &#39; -"���TF_._&#39;.&#39;. Lu--1&#39; _ L &#39; .._,&#39;,J-~ -� -_��-r- .-__.,._-_-- ,___;.-,__q ._ ..�-1 ---w� �-~&#39;- ~-"&#39;�"&#39; &#39;" �_ -_..__.__......_,_... -- _ __ _ ,_. .._e :----_-»_--_- ---1:1; ,-_- ~__-_� 1!:-,~-=&#39;-&#39;*-»------K7__ _ _ __&#39;-"__.*" __� _ _____, _ W- "- � &#39; -" V K �&#39; ~ ~ "_, ,7 _ _ �__&#39;- �_ ... - &#39;_ �&#39;__.___...._ .._,_...___...._ ---��-�-�-""_",�"��. &#39; _&#39;T_�"~ :5 � &#39; 7 �; __&#39; __ 1_._Z&#39;___-.--_-�-u�---1-�---�:-___ - �- _ __r �__j . _w__ __,_ . ..5u_.u ~- --��-��-,&#39;jT�_ Y - "&#39; " L, -3,� - &#39; .=.._..r_a.-&#39; .1:-2.; V--Q �- &#39;-*"""�i " &#39; &#39; � �� ..~,- � �_._.xIIiIl-B----- , __ -- , , - W , ;; -- � ~W ___x-.---_-_;-_-:--g- ____ __ �___ ii _ --���� W _ _ ,_ ,_ , _ , _ ___�_.,__._._-A

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_� _ _ ,;-""_. -- &#39;L&#39;_� " j

_ _ ._ __ ,�_e.__._,_. __........_...-----�-&#39;-_ �_f_ ,

2� _ » -_ ___,� ,>-rs--.1-H--.-=¥=&#39;---~ --�&#39;-

JANP1935 e-mm prom: &#39; mMEn1�UlN--II

= _ , 1 &#39; - 7 �-"-"r-A "-�%*��,~ %CAPONES TAXES

:-- "&#39;1-_.&#39;j;,§_-._.._..__!-._.__ 1 - _ .- :&#39; ---

;U.**5�.�Is Seekmg_. _. » -ii/";To Collect 41 &#39; &#39;

-__-_..i--

em. 1.?L1DEN°E.&#39; Wes:-mzcrron, Jen. e mm-The Government will appear soon

ore the United Bf-ates Bond ofI I MP . "

1,5beck in-gpom; taxesD I1-gltlee gum_ Capone,now eervln�an 11-yeare e n t e_ neeI o r t e 2evasion.

Witnessesare beina

3 rounded up�quietly topresent to1::*.:.:;*22 - W»191.0?� C�_ �II. _l. each 5:1-I06 IMIIpone beduneome rrom gemblinz end othertopentiona totaling more than Imillion dollars for the yen; 1925�:0 1929. The uiumenbe will be

_ ,1 .-....-.--�_ ..__..e _ A_ y-, &#39; e �.

.} 3"" -"""""""__i=*i_.:. �ig �-._::;---&#39;* ._ -1.1

&#39; i Mrs N:n&.em.._,,_. �l

__ A _ i _,,__�__,j?__ 4* �*&#39;v&#39;- ii &#39;

$391,506,? I, - .

Mr. T0!Iv;>&#39;|&#39;1,..._.A_LMr. �C1;-[[.-..._....Mr. Baughmarl -.Crier Clark .... _.P� r. Cclfay _. &#39;

92�-r. Edwardn .,...Mr. Bcan _,.,_ _--_ V

2&#39;Hfr. I-larb: ....... .. ,I-&#39;.r. Kolthm... &#39;

-- , ,_t.;;&#39;.m. . _ . ._.

:":I921L,l--.!&#39;� .-._;.r, 5,5;-&#39;92a|c.n-r, &#39;

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u �lnchy an wndwa�nt I Wm�i-uu-hdup at all wihngaes

lsti�ed either lot or 118111-Blchieftain In "Previous Qa-

ecues. -_ .

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1 Mr. cm" ........ ..L Mr. Bauzhr-nnn-.

Chief Clark ....--.Mr. Coffey ...... _.

I Mr. Edward! .....i Mr. Eian ........

Mr. HlfbO;.Z.....

L Mr. Keith ...._...-1] Mr. Lester ...... .-A Mr. Quinn ....... ..

Mr. Sohlldlr ____ _.I Mr. Tnmm ...... ..Mr. Tracy ...... ..Mill Bandy ..... ..

l .................. --[

I�

92!�:92Jh41%i1=i;n»,@¢5@l§%§:32%i*�%fW-/fa -A 4

Page 61: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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gm� Quln|-|___ __M" $cni:ci:r 1MR Tfacy .

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5iiKl$BH1o.��aIIAPIJNHAX

- 1-ii I�WASHINGTON, Jen.� 8.-0?!-�

The government will appear noonbefore the United Btatal board oftn: appeah lu Chicago in on effortto collect $891,506 in back incometaxes and penalties from Al Capone,now aerving an elevexvyear aen-itenee for tax evnalon. |

Witneuu ere being rounded up�to prove that Capone land ineomefrom gnmbllni and other opera-tlone totaling more than a milliondoiinre tor� the yearn 1925 to&#39;1929.lneluelve. - --�

It la not likely that Capone willbe neieued from prison to attendthe hearing. Through bl! attor-_ney, Michael J. Ahearn, be bumade the claim that the penaltiesproposed would eonltltute �doublepuninhnxent" and destroy his eon--unmmnnm--" p--�--

I �;§ =£

up92"R�

ox

-,,a._e5~v-;-_, ___ _ ___ -_k ._,..=__ .... __,_ _.___ _ _ ,___. __ �H __ , . _�&#39;»%.E�.:"&#39;"-=-i**Aee,...:;*.;&#39;�Ej_i.A*?5i_;>;2==_f-""�{ -4 Cm" . __;fli�i* - &#39;_�r- Clagg______5 - 7 - �~ .�. ~ -aunt� &#39;1?�-| -��---. � "HMr. Baughmln __

Chlaf Clrk _____ __MP. Cllffay ______

F Mr. EdWard5_____

Mr. Eign _______

M13 Harbq _______ __Mr. Keith ____

Mr. Lester ______ __Mr. Qulnn......Mn $chllder_,____

Mr. Tarnm ______ __

MI�. Tracy

Mlsn Gnndy ____ __

Page 62: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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;|sr.oou|y__,_______,____l|u.mnm|._______

; Ir. In-p°______&#39; In». Keith &#39;

i Il&#39;.1AIIAr__._...__..E llr. Quinn ______________

Ir. Bohuoor..______llr. �ham

kl�/Plky __i____

_ __ ____ _. _. ._......___..- 3 92

341." CAPONE- i;fmnriczrnrsn livenlo HUNGER STRIKE�.w � | &#39;

Ban _I�rs.nc-isco, 031., Dec. 15.- P!-,Bome at the alleged oaurets a£.A.tca-traz"island, including an asserted hungerotrike by Al Capone snd other prloon- iers, were diuclosed today by John,Btadig. young counterfeiter, bEfU1&#39;6�0�1-�cials chipped him baskjnto the gov-ilernment&#39;s carefully guarded prison tor�arch criminals. �

"I&#39;d rather die than 5&#39;0 back to Al-catraz. That�: a hell hole." Stadlg toldConstable John Ott immediately alter

ibeing Qpture-1:1 near Lox-tinez. Cal.,ri�yesterday. He escaped recently while�being returned to the prison IromPortland, where he had been taken tolppear in court. " �

"I got s 15 year sentence at Port-�land through s tra.meup," Smdig said.�"The warden, lttorney general, snd�Portland court framed me because Ii

�had written a. letter to the attorneygeneral criticizing the prison. -

rI

g Ill i-t~n,............_._ . __

" My pal and1&#39;1&#39;!an&#39;ud1edl the warden

motion pictures in the prison once s.month. He shackled us and threw usiln the dunteon tor this, snd it we got:two slices oi! bread 0. day we were�lucky. _ � -1 �A1 Capone snd other prisonerswent on 0. strike and retused to eator come out or their cell. and in threeQ;y§_1g_were released tromggeon. It was otter that I w o e to the�lttorney general.� &#39;

Z5 �A

, 9??! {ruck" &#39; 3

to allow us some newspapers sud;

_ »���--it __&#39; -�-*�-",_,_:�_&#39; ._

I

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NIH? s........._.F11�-f&#39;B.§

Mr. CoffeyMr. Edwards

92

Mr. Egan ._._______,rMr�. Harho,.____.,,iMr. Keith _ JMr. Lester� l

r. Qulrm ....... ,.Mr . Sch!|I�ier____

Mr. T rn Hr. Tracy ....... _.

___________________ __ �

"?&#39;/go�/�Y./2-/4�J¢ Q3

Page 63: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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Mr. Tmiian §-animus &#39;$.Ilu1= -.-n �$=_.=n: :. - o=;_=|>-_¢=�@-_ 1-1 I--�Z1 �P hi-in _.__,_-¬-,,. ,1.-�_:-.-.�% -- s -�=r� -- � - _ -i_ ~� ~n=_n£.�_&#39;r;_&#39;- &#39;i~_a -i -Vi ;,�_�-�_- Jill -E1� 7--,-»;;;T�_"" e . e AT� :7._

----�-- � - ._ _._._. 1171 _ K

lIlFllllLi-..,;-.&#39;-J. &#39;7 .,";:;

y LUNEER SllllKEllllkllrll�lliilaptured Fugitive Tells Se-� erets of ll. S. Island Prison;

Prefers Death lo_ Return1 Q _ __.___.a.- �

�S31 FRANCISCO, Dec. 15.-UP:-Semi�! the alleged secrete 01Alcntrlz Island, lncluyling an us-nerted hunger ntrlke by Al CaponeQndotber prisoners, were disclosedjodny by John B_t.adlg, young culm-terfeiler, betore officials clappedhim back into the government�:carefplly guarded prison for archtrlmlnule. V&#39; After being enptured near Mar-

reln h id1lnez,CnJ.,yelte y, e :�re the dietlmn &#39;§55?¬F�

l.

iill

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0r"&#39;1.&#39;nr|s._ "*"*-1*�g�;n».mJ-Q-:_c s<m1&#39;;£!.=3&#39;£&#39;a&#39;l-"¢,-§_ped uoenily whllfbemng no--iurned to the prison Tbbm, Port»

M. when ne had beaptnkm toPal-T 1l&#39;l.&#39;_§�-ll�!-..§&#39;.-i;,l,&#39;-_&#39;.�_Y,�£.i_&#39;.§3.l � __

I T�iing 0! I110 hl"p_t&#39;b0n,&#39;$e nldr-- "&#39;1 ivrute �a�le�A!r1I�1in Hor-

�ll Ill I �lldfléll �e�an-rdlln to Ilw 1|yaperla-nd mo�cpyinhtruelnthe

�||ri|-on once 0 �umnth. -He�.Ulm¢&#39;-liled us and threw till! the"dn.ngoon"Ior thls.&#39;und ll we"-�at

!.&#39;�wnelinnlo1b.readncIaywe&#39;were=� �Al Capone and other prluonen

went on n �utilise and re�lled toeat or come out of �adr mils,

11 in �res hp we Iere ro-IIIIIUOII. It was

the Afton

SEPARATE CELLS. �He I-ddbdi ��Capone. �llachlne Gun� {Kelly

, ll�l Harvey Bailey are confined�temperate relll like the:-alto!"II. Eachmlnlilockodlnllil

unlltnry cell it I280 p. IIL and,i92lye locked up until hills. In.1; �We was [ray unilormn dur-| In] �le week and change to hlllp

nnel on Sunday. The guards areplenty ptrlot, but the treltnlent

&#39; In the main inn�! no bad. We <!on&#39;t¥ [et much exercise, duly cl: hours&#39; Q week. spread ever loven dun.

There ll no�dope In the prison."

|r

>-I

i Stedlg his �gured in three es-Ppapee, one atwhlch� wu_,,lavGni-i"I��"."". .

lll1

i

i

ChMrMr

MI�. Egan __ ______Mr. H-I-rho _______ __MIN Keith _____ _Mr.

M13 Quinn _______ __

Schlldery/_ lTam:-n ______ __ 1Mr.

Mr.Mr.

92 if

I.Mr-"Blush -" r

1ef12�lIl&#39;lr _- Ccffey __- Edwar _____

La�er

Tra¢y______�__

Page 64: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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imnsm mm-rl|nl&#39;rl&#39;92l&#39;|&#39;

�|I92HH92||1|92£F� &#39; &#39; .l£aptured Fugitive Tells Se-

in Q l_I�_..I l92_!----Hi GFGTS Oi U. 5. ISIHIIU l"I&#39;l5UH;_92 Prefers Death 10] Return1 j . _ --_-1- . &#39; 92

&#39;BA§[92FRANC1BCO, De_c. 15.-UP!-BOIBg_�92[ the"nlleger.92 I99?!� 051Alcatru Island, including an us-1Iartcd hunger ltrlke hy Al ClP°n¢;nd&#39;other prilnnerl, VII�! diaciosedtoday by John Btadig. young coun-jertelter, bgfore omen}: clampedmm hag}; mm Lhg zovernmenrsJ:-;r_;fu_1I-yr g1w..r92i_ed_ prlgon I01� I-NI-92criminals. .&#39; Alter being captured near Har-tlnez, Cal, yutefday he id:-" the .11. wk» &#39;§5|;:arr¢

&#39;� kedupu.I!tlll80n.m.

Pain I� I

f ; &#39;=I,=: �*aI====_==&#39;~5&#39;~:g 1, A; =-ii-_**-._=.=="&#39; i_I~.-_; _T_T_.:__:.:_e1- .__ ._--�__ _,

._ _.,_._�. ..__-._... . 1-1-_.._» _

�!I&#39;1&#39;-31.1.3 or mum. _-"f h""�[j"&#39;rb;Js4¢-,»1c"i§a>unT&#39;¢&#39;1&#39;=IZ&#39;FE$&#39;itpewi racently- �dill; BeingQurned in tha�|u-hon it-hm Part.-Q!-ML when no hid bong khan to

PM-r In cr.92_urt.;;;1.;.r.Eglel�ng 0! life in1§_r§aon,"!n!�IlId: n latter to

"&#39;11 pa ll1d&#39;I1nl&#39;,lbkod"�|e -¥-�iinlln tn �luw Q Homo sown»_]B�GI�l-lll� motion picture: h�n 4Jprlson once n- mcnjth. ;

�unar-.kIed&#39;usnnd£hrewu!n.H1a<dungeon lot �ll. and it we gm I

__ [two Incas" oi hremi aria; wéwnn 92&#39;

�Al Capone and okhar priuonu-1went on rntfike and rd�lod tn

�eat or mm: out of �aelr cells,and tn �u.-no dun we won to- trom the dungeon. It In _.I�ar that I wroh to �u Attoricy Gum!-ll.� "- - &#39;

IN GEPARATE �5118. 92. He added: ;

�Capone, �Machine Gun� Rally �and Hung Bn�eg an con�ned L�

punt: -ell; like H10 Nit oi k= Each min ll locked In his

eellnti:80p.m.nnd� �lly! 10¢ :| �We wear pay unltorriu dur-92&#39;ln¢ the week and change to bluej �nes an Sm-�day. The guard: areI plenty ptriot. but the treatmentI�-� In the main im&#39;t In bad. We don&#39;t{ [ct much ezepcilg, duly nix hours_ I week, upland over maven hyl.&#39; There ll no&#39;dope In �ue prlunn.�T Btldig ha; �gured in threa es-1

- &#39; Hr tznrrgnma

= =0-mm� Clerk

- Esdn -.-......

wanes, one ofwhick w�,,h-wGhi-Y 1-u~=&#39;r""r . V

1 ilk"/1!/I -47/ ,,4:"� r/. 9/,é:d4>%Pwu

P?"&#39; go� /-z»/@-;;/ /J

Page 65: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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&#39; Ilia-H10 �ll -uyl�pwhieh ewu kllleli.

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. Smuggling of dope intoe eon�:-aty lieii yesterday;

rumpled Sheriff-elect John�.omen to uiepoee iievidi

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_=_M0ncypenny�s intimat i 0 n s-�um lack of political pull was&#39;it the bottom Of his removal

the etricteei fulee of penel institu-w�om_ _. w 1 __ 1ELLB_0F cnnm. - -1.§"Do|>q hm! lmllltlod In i

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Page 66: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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tI.N.8.!�Inmatee in all of Califor-Qahh stale prison: today were en-joying epeciel Thanksgiving Daymeals. but to A1 Capone and thedid ieieeteci Fbni boys� onAlcatraz fedenl penitentiary, the�Devil&#39;s Isle� in the middle of SanFrancisco Bay, it was just anotherThursday. Warden James A. John-eton, warden at Alcatraz, said�There wiii be no epeciel dishes

� Mr. Bauihm--. �� . Chiei Clark;

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Page 67: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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/Ivur UV II YEARS, »AVERS OFFICIAL"

Sa_n Flincluco, Cal, Nov. 23.- .P}�" here will be 110. parole tor A1 Cnpone �r we .-,¢a.-=r 1-.1¢¢:%i= mma priscizi"&#39;1ncorr1§lb1en," Co]. Jaél Moore, chiefladen-al probation officer, made knowntoday, --, �AI Capone Ind others at his likewill have to ierve oqt their entire

� fmrmn in Alcatraz prison. Thgre Irl1I~&#39; no paroles recommended by myfxwartment for them.� Col. Qfooru dzcllxi. "Capone must perv¢_ ou11 _ 1&#39; sentence." �

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Page 68: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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_ -at .0lmu;e; mu em-an ll -up[Mei-.1 District court or Atinnte. IrhlleV he was Imprllonod in the tedemi peni-tentiary �I-Bel�, but �before its �nnl re-

jection by the lupreme oourt Capone�hm achieved the releue he uouxht.He in iiken out of the penitentiary

Aicetru Island. oi! the California coast.Neverthelen the petition tor e. writ}

denied today, wu in the matter Qt:

the letter being warden ot the Atlanta�

nu plea. after he had been committed�to the penitentiary on Mny 4, 1932. Asupreme court decision in mother clse theld that the ltatute 0! limitatiene in Acriminal Income tax else! in three 3yeqre_ end not nix. no the government �relied upon in convicting Ch�one. *

But Capone�: lawyers had tailed toraise the piee. during the trial and this

of certiorn-L which the Supreme court ;1

Aiphonse Capone vs. A. C. Adei-hold,�

penitentiary. throne�: lnwyere rained

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precluded him tr-om further relief.The Supreme oourt took under ad-

visement the cue&#39;in which Sam 1T. Ansell, who investigated oi n

YuMem is mm: e " un-Loni� 500.000 nee. -

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Page 71: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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pderhdinting.

1-3-�92:n:runeu| I61� L�-Q-POI�come tn: evasion§t!1et .-.e the tndlctr."more then three yeIeged oftensee occuof limitations ba:11-om taking jurisdl

The lction of theto Capone the sololppeal for n reheawhich the odds w-him. As e result iIn itly It Alcatrazuntil he become: eli

Since the court coIn the Oeeentjal podon, it threw no Ii;hon whether ooumIn appealing to th~pea]: from the decigrist Court for N

ad erred in taiiirItatute of llmltaticimpediment to his t

Beeldes the ten-ytenee, Capone rec"term in county jail�$50,000.

At the trial. couiasked the court toat not guilty on tthe statute of limlta�consideration ot IIyears prior to the 1:government replied &#39;the 1im¢al.i0n was eibl nn tternpt toit u-.41 sun.-en-nun-nu u-|924I.l|UGO&#39; The trlel court B-ilnn for e directed

ed, reversal of ti-1pought on the eol-cut�ciency of the{the question or the-1:_lt.iouI not rel

In e petltl�n toroorpiul �ied in th{or the Horgeu-n Di

Page 72: FEDERAL BUREAU OF TNVESTIGATION - The Vault

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fihleegeb it-Gang Clmieftein 1:1�92-. Believed Likely te�erve Hie . � ;,- :fl&#39;§_Ine_ et flleetne. &#39;_;_; H 1�. . . __�2&#39;4"� bum� � Q M-~.e.L; rune. -71» 1Fwlm-nuomre. -Oat. u;-Pm»-J�y the-leetyzenue �u-ongh Ihleh -I� hc_me_ek_&#39;"Cl]92oue "&#39; Idlghl. &#39;7�have �Zewnregl -Ihi rest .e.!.._.hiI .

aw .wI=1=="I>* &#39;1=°9m@" was t6�1n21."1m blanked to-%92yb"ytheBup:-emeCourt.- &#39; �

jeeted e petition or the former Ch!

lower eourt �ndlng-e, in e hebeee.;eor;pue proceeding. K -: Counsel for Capone, conceding in-��home tez evlllon chu-lee, argued�;that es the lndlctmentjvee drtwnl�more than three Years liter the &#39;51-1�jqed otteneee occurred, the etetute »gt ilmltetione herred� the courtQrom taking Juriedietion.&#39; The ectlon of the high court leftto Capone the eole reoouree or en,eppeai for e reheering. e move in�,which the odd: would be against�lm. AI e result Capone ls likely:to my et Moetru prleon et leastlptll he heoomee eligible tor parole.

Slnoe the oourt con�ned ite rulinglo the eeeentiel point of the peti-tion, ll: threw no llghtwon the quee-�on whether counsel tor Capone.l_.ueppee.llngtotheCourtoIAp-ml tram the deeielm 0! the Die-

Court tor Northern Illinois,led erred In felling to relee theetetute of llmitetlone ee e legalimpediment to hie trill. &#39;

Beeldee the ten-yeer prleon een-|tence, Cepone received e year&#39;s-term in county je.lJ end e. �ue of350.000.

At the trlel. eouneel-for Ceponemelted the court todirect e verdict0! not guilty on the ground thatthe eletute of ll-mltetione preventedibonelderetlen or en ottenee threel eere prior to the indictment. The ;

vernment replied that In thle eeee&#39;e llmtetion wee eix �year: heeeuee

en ttempt to &#39;detreud"_ the�gl_ted8tetee.&#39;__&#39;_"� -.&#39; . The. oourt overnaied mo-

tor e directed verdict. On ep-�. 1-evereel It the nonfiction wee

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-�Supreme Court in an effort toescape his sentence on eharges oi�

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limitations prevented his trial.� "Thus the hish court left unan-�iswered the question 0! whether1 or not Capone&#39;s lawyers made at,i&#39;ata1 error when he was tried in _&#39;Federal court in Chicago by not 1raisins the statute or limitations�?question in the proper way. . �J

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