Al Capone

“ On the night of April 26, 1926, Assistant States Attorney for Cook County W. H. McSwiggin, was murdered in Cicero, Illinois. Mr. McSwiggin had a few months before interviewed witnesses in a murder case in which Capone was alleged to be involved. Al Capone was accused of the McSwiggin murder and the police raided his Cicero gambling establishment on that date. This book was found in the safe of the establishment by the police during the raid and it was turned over at that time together with other records seized, to Special Agent P. F. Roche of the Chicago Division. ”

“ There is no doubt that if Capone thought he could remove the 'heat' from himself and his gang, and bargain for a reprieve from the raids and arrests and convictions resulting from the investigators' activities, he would have done so, even at the cost of putting the Lingle murderer on a doorstep somewhere, dead. ”

“ We were informed that he had learned that the government was aware of his plot to stop his prosecution, that he then abandoned the plan at the demand of other members of his organization and that he had departed for his home at Miami, Florida. Our activities in interviewing witnesses with reference to Capone and in gathering evidence to establish his income tax evasion were not diverted because of his threat or plot against our lives. We did, at your suggestion, take certain precautions in order that persons not connected with our office would be unable to learn about our movements. ”

“ Capone, that this respondent's activities were linked with those of an organized body of men whose outlaw camp is at the Lexington Hotel. Of this body the defendant Capone was chief. The respondent claims that he didn't know what this band was doing, but his understanding is that they were engaged in gambling and bootlegging.
"It is perfectly clear from a long array of conclusive circumstances that this band exercises a coercive influence over those with whom it comes in any contact which is nothing less than insurrection against the laws of the United States. ”

“ We all feel real pleased over our new location. Kindly continue to send mail to me at the Post Office Box 1101. The telephone number of this office is Randolph 5254.
I had a conference today with Mr. Clawson, the new First Assistant U.S. Attorney regarding the possibilities of the conspiracy indictment against Al Capone, Ralph Capone, Peter Penovich, Louis Alterie, Louis La Caya, and others. Mr. Clawson is inclined to favor a conspiracy indictment, and is looking up some conspiracy cases. ”

“ On the occasions when Al Brown came to the gambling houses operated by the syndicate, he was usually accompanied by Mops Volpe. Al Capone's younger brother, known as Bottles, was employed in the gambling houses as Floor man and I think was paid $25.00 per day while business was good. On some occasions we would have from 300 to 500 persons in the gambling houses making bets,etc., and we would have from 20 to 40 persons employed. ”

“ The telegraph operators employed to receive the race information and results over the wire from the General News Bureau were Jimmie Stanton and Joe Funk. All employees in the establishments were paid in cash each day. Cashier's checks were not used by me in paying off the winners of the bets. I do not remember of any time, after Jimmie Mundi discontinued in Cicero that Ralph Capone, Jack Guzik, Frank Nitto or Al Capone made any bets on the horses. ”

“ Tessem in tracing various financial transactions of members of the organization through the Pinkert State Bank and other institutions was one of the most important factors of the investigation. The successful termination of the income tax cases and prosecutions in Chicago of Al Capone, Frank Nitto, Jack Guzik, Sam Guzik and Louis Lipschultz was due to a great extent to the persistence of these agents, to their exceptional ability and to their willingness to assume their share and more than their share of the hard work which was facing all of the agents assigned to these cases. ”

“ Most cowboys and Indians laid down their guns long ago. Al Capone no longer roams the streets of Chicago, and reports that you cannot walk outside in New York City after dark without a karate expert by your side are somewhat exaggerated. ”

“ But prosecutors don't put people in jail for crimes they have committed; they put people in jail for crimes they have committed THAT CAN BE PROVED IN COURT. Chicago federal police put Al Capone in prison for income-tax fraud. Chicago is a big town, with a rough-and-ready bare-knuckle tradition on both sides of the law.
Fry Guy had broken the case wide open and alerted telco security to the scope of the problem. But Fry Guy's crimes would not put the Atlanta Three behind bars—much less the wacko underground journalists of Phrack. ”

“ The net profits established from this business for 1924 by the gambling book record, Exhibit No. 5, and by testimony of Mr. Shumway, was $300,250.94 and 41% of this amount or $123,102.89 was the net income of Al Capone from that source for that year. This amount was the net income set forth in the indictment covering the year 1924. No evidence was submitted by the defense to refute this income from the gambling business but the defense did produce witnesses to testify that the taxpayer suffered greet losses through bets on horse races with bookmakers at Chicago, Illinois, and Miami, Florida. ”

“ Stickney, a western suburb, adjoins Cicero, Berwyn and the City of Chicago. Al Capone attempted to make a deal with Reverend Hoover to allow him to operate the gambling business at the Hawthorne Smoke Shop in Cicero without molestation by agreeing to withdrew his illegal activities from Stickney in the event that Hoover and the West Suburban Citizens association would not interfere with the activities of the organization in Cicero (see statement Reverend Hoover, Exhibit No. 8) . ”

“ The tactics used by Penovich were used by other witneeses employed around the gambling houses in their attempts to shield the leader of their organization, and on account of their antagonistic attitude the United States Attorney decided it would be inadvisable to use Peter Penovich, Frank Pope, Ben Pope, Robert Barton or Louis La Cava as government witnesses at the trial of Capone. ”

“ Important witnesses were sent by the defense to other states, also out of the country, and the principal defense witnesses gave perjured testimony at the trial. During the trial the defendant and his armed body guard, Phillip D'Andrea, glared at the government witnesses instilling fear in them and causing them to temper their testimony in favor of Capone. The most daring effort to thwart the case of the government was an attempt to fix the jury. ”

“ As this investigation established that the funds for the purchase of the home and for the improvement of the estate were entirely furnished by the taxpayer, Al Capone, it is believed that the government lien covering the property is valid and it is recommended that unless the tax assessed is paid within a reasonable time that appropriate steps be taken to foreclose the lien and cause the sale of this property, the proceeds to be applied to the unpaid taxes. ”

“ The Capone syndicate purchased the property known as the Harlem Inn on February 29, 1924. It was bought under the name of Louis Lipschultz, a brother-in-law of Jack Guzik, and on January 7, 1925, the property was deeded by Lipschultz to Jeannette Keithly, a sister-in-law of Jack Guzik. Capone was aware of the efforts of Hoover, Bragg and Morgan to have the sheriff and the state authorities close up this place on account of its being a house of prostitution and he tried to enter into a deal with Reverend Hoover who refused to consider any such proposition. ”

“ There is submitted herewith as Exhibit No. 103, a sworn statement of John Newton Lummis, Jr., of Miami, Florida, dated September 5, 1931, and Exhibit No. 103-A, a transcript of his testimony at the trial. Mr. Lummis stated that he was in the real estate business and is at the present time tax assessor in Dade County, Florida; that he knew the defendant, Alphonse Capone; that in 1928 he was connected with the real estate company that sold a home to Capone; that he and Parker Henderson took Capone to inspect several houses at Miami Beach; that Capone purchased for $40,000 a place on Palm Island ”

“ It was necessary from time to time to move the gambling business from place to place in order that we might not be disturbed in the operation of the business and just before Jimmie's departure we had to move to the place known as The Subway. About the time Al Brown declared himself in on the gambling business and a short time after Mundi left for California, Ralph Brown, whom I later knew to be Ralph Capone, appeared, and Ralph announced to the employees that Pete Penovich was to be the new manager and would have charge of the business in the future. ”

“ On October 10, 1931, the writer recommended (Exhibit No.165) that a jeopardy assessment be immediately made against the taxpayer and that liens be filed by the Collector of Internal Revenue in Florida in order to protect the interest of the government, as we found that the taxpayer was attempting to dispose of his home, the household furniture, two yachts and a McFarlane automobile for $150,000.00. The assessment was made and due notice served on the taxpayer at Chicago on October 24, 1931. The assessment against Alphonse and Mae Capone for four years, 1926 to 1929, inclusive, was $137,328.16. ”

“ Leslie A. Shumway at Miami, Florida, on February 18, 1931, relating to the gambling business conducted by the taxpayer, Capone, in Cicero, Illinois. Mr. Shumway was cashier of the establishment and made the entries in the book record referred to above as Exhibit No. 5. ”

“ His immunity was explained by statements of members of his organization that all of their activities were protected on account of large graft payments made by them to insure the unmolested conduct of their various businesses. ”

“ He is close to General Vaughan and John Maragon, and thick with Jake Arvey, Chicago Democratic boss, friend and apologist for Al Capone’s cousin, Charlie Fischetti, king of the Chicago underworld. Kronheim’s son was recently made a Municipal Court judge in Washington. Truman nominated166 Kronheim’s lawyer, “Jiggs” Donahue to be District Commissioner. And Kronheim supplies the White House liquor.
One to watch as a power is a Boston lawyer, Paul T. Smith. ”

“ He has been identified with various narcotic traffickers since about 1938, in New York, Kansas City and Tampa. Convicted in Kansas City for violation of immigration laws as outgrowth of a narcotics investigation.
D’ANDREA, Philip: Subject is an influential member of the Mafia. His uncle, Anthony D’Andrea, was head of the Mafia in the Chicago area some years ago. Philip formerly a big shot member of the old Capone mob was convicted in the Southern District of New York in the Brown-Bioff case and is presently on parole. ”

“ Of course, he's the head gangster, but Piselli is the Capone of New York."
"Oh Piselli! I find him bourgeois, always talking of his sons becoming gentlemen, and how he would like to visit his old mother in Castiglia."
"He may be a mother's boy in Italy but, oh boy! what a bastard he is here. At that, he's better looking than Capone who is a big ape. I've seen him."
"The appearance of a man is not of a final consequence."
Lucy considered this. "You said it. I don't care for men who have nothing but looks."
Simone lit a cigarette. "You mean they must have something of substance as well?" ”

“ Tompkins," he asked me. "How's your health? You don't look any too good to me. Don't you think you'd be better for a little special care?"
I laughed admiringly. "So that's how it's done, is it? Well, I never thought the Secret Service was reduced to blackmail. Okay, I'll pay."
"Who ever mentioned pay?" Flynn was indignant.
"Nuts!" I replied. "Cops are all the same. They jail Capone for income tax because they can't convict him of being a racketeer. You think you're being cute by sending people to the booby-hatch if you have no proof that they're dangerous. ”

“ What would you have me tell?"
"The name of the Capo-Mafia, for instance."
"You think there is a Capo-Mafia?"
"I know it. What's more, I know who he is."
"Belisario Cardi? Bah! Few people believe there is such a man."
"You and I believe it."
"Perhaps. But what if I could lay hands upon him? Think you that I, or any Sicilian, would dare? All the police of this city could never take Belisario Cardi. It is to make laugh! Our friend Donnelly was unwise, he was too zealous. Now—he is but a memory. He took a life, his life was taken in return. This affair will mean more deaths. ”

“ Historically the Mafia burst from a soil fertilized by the blood of martyred patriots, and represented the revolt of the people against all forms of the tyrannous government of the Bourbons; but the fact remains that, whatever its origin, the Mafia to-day is a criminal organization, having, like the Camorra, for its ultimate object blackmail and extortion. ”