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THURSDAY. OCTOBER § 1931. - simi ete See Bent, 18, 1990, a) Cr ima vince eoert exae 03 6 né bed trond mess jc. Si. it tt Popa ce ene ca He he pee L L.¢ 1G find complete records for] fea aera [ups Set on AN The next Mating! came in ty fn , € nd pay Lu Brae TAB Wan eTsccr amet {we con co taxes an the: AL UES po: recessed to per- ~ B mi a Corcsion of facts contained} Teste Said thet be ser in May ag.ys audit, je said that he reeozr red one: es signature as) Matos” 5, Ideas. abergurt te the story told thie M suberqurn oy es Cerone was not sacichied othe: ps second i ether on the matter of © deiincuenc? an on the 1 4p with Cenone himse exact ownersh!p ed wath precision, ideas for & Dis core :ke the General be p have tl Mr Gn rauseg an ¢ shirk Sas ad three asroriates preposizion to the ectors admitting that he tas wprndous organiza- ris brains THe outed ho + gen tured from Mr.loth pike up the Maturcie Tete! ter ana evar to read Apr: “reer on Tae remeininz 7 SUSE earn, between 3 three unnamed asso parte of such an orzarvation it In Capes Secs ne stoiiv. ae 3977 Soray rere G00 and wn 108 ard Vio met more than $162.99) 2 5 tyear, Thee vere some eecuct. Arcana’ aoa the [er were Sithe expenses of econ Mr Capone reps Chan Cf ernierener: erste rene So hee atiorney thi PEE Be tes 1 ce period was Re leer loots Which Cansie omer wat tas ran dekt to his associates founesrr of nis gs tntae” t. Soe ef bis Fiorida Ws 10 bem One at the Iter Like £200 Bal tory in the ware’ Ci nene ds to tha: he was Bietee th oe Pag oot Be po. off a $3009) capital to ih ermorarsten en that hed bro see bee Be ales Tor pence Gf the oveat sa tier he tere to be spit te fhar ore-tusd woud am tp tee ems precio ew former ant Blo Satine ey Gas. Sopieever, ope pe eomemnere 7 aerate ers rot be was care larse bo!r- cero hitb aeots vont at ng tite cen ied with Radegaards fetteg that oe wan hed been te nit 3 M 17 Maver eich g stgtement br Mr. Matt Te a term identif) scrapttve of Mz. Cano..? Jdevermining nu nes taxable income.” Close of Negotlations. ‘The letter. 29 the noves disclose. was) Inanded by Mr. Matsingly on Bep%. 20, 1980, to C. WW. Herz.ce, internal reve enue agent in Chicago at the time. bringing to a close # long series of conferences between Mr. Capone and Government gents, ‘The oversures of Mr. Capone to reach an ag-eement with the United [Sta:es anc e his duties as root etizen and taxparer we Isaried, so the notes disclose, March, 23, 1930. At this time came Mr. Ca. pone with ike illuminating state- My. Capone hes never filed an in- leome tax revurn but wants to co-op- the gosersment.” ented that in the eightecr: ate fears prosecution dicrtoseree he may ad steven: © avvencec th.s con- Perens ieeared what Mz e tens the Words rigMt out special revenue! een. ated cored by Mr. Mat~ cent were wei! ‘he fears expr cate ant his erounded. “Any siatemient vou make.” he said, mer be the ecbjees of an investiga Hor. ar tha: can be, used against ” His Frankness Suffers. Bz. Capone's frat. suffered 8 2 chtough Chis warz.nig. bul he went ‘adm: thot hee been’ ied by Mr Matin. jy, that he haz never fed an income- fax return. He staced furshermiore that he kept no bocks, had no check- ing accounts and cared no proper! 3 $0 far ag to prev.ousir ac: Matuinzly Inierrupred ne te say——as has deen pre Ise: forth—thor un to Capone represen ng empirre: NS E etahaled “No” 7 + er relatives a1 “Id rather not answer." “What did you do with your wmponey?” “I carried it on my person.” “Have you any connection with the ‘Hawthorne dog track?” “Td rather not answer” Next Talk in 1930. ‘That ended that discussion. ‘The next negotiation was opened on Bert. 1, 1930, when Mr. Mactingly came to Mr. Wilson's office and told him he vas having difficults submitting the facts of the taxpayer's (the words are Mr. Mazzingly’s) income. “The taxpayer.” he sald, “fears that they may be used in & prosecution.” Mr. Wilson prom'sed no immunity, put did say that his office had noth- img to do With prosecution, So. the next dav, Sept. 20, Mr. Matting!y arrived before Mir. Herrick with the lengthy document outlined bove—the intimate stery of the rest i tus effor: to Cesar the'Mr. Capone, Ard Mr. Herrick filed things that preumebiy were Caetar’si}y geay against the ay wbe be just anc equradie share ef the coud use it to send Mr. Cat. 0 profits ebia.ning from violalens Of. Leavenworth. s Bad News for AL Je was general!y believed by dis- snerested spectazers about the cvur:- room thet Mr Crmone mient not sur- ave were this sory of is - bo! istruegie presenta to the jury. Ard the ecfense attorness seemed to take the same view of the riatter. : ‘Michaei Ahern. of counsel for Mz, ‘Cepore. contended that Kr. Matting- I's letter was a privllered commun: cation, submitted in a particuler cc! trow government |therefore cou'¢ rot be used again: jr. Capone in anccher case. Jude: Wilkerso. didn't think this was the case. "You are wrone.” he sald. “A cit! zen {meaning M: Cape] who has violated a federal law cannot escape a federa! grand jury simpy by pre- senting facta to a subordinate of the treasury department. And the facts iso mubmixted are not priviieged as 1 ten ic If a citizen comes to @ govern- vment agent as in this case and gives ncome-tax figures to satisty his full ies as @ citizen under the law such array of facts Coes not constitute ‘omise and 35 net privileged. in this instance, the is whether or not tingir's statements were duly au- thorized by Capone. Mr. Abctn Decialme, Ahern showed sans of rising your honor.” be said in & ir voice, have long fous! Mid vor furs! or sustice in th of taxes. Re your Fiorida memser we iad the Boston 12 Tans per jawyrr eiewer)) “But this ls rs tne Bosten “17 Cer |rartse'-Juege, Wkerson reminds je Matting: conttsbuted that Me.| him, Cenane had furnished 810000 each! seamee seem we Beet 69-180-86 vie