Indianapolis Times, Volume 45, Number 40, Indianapolis, Marion County, 27 June 1933 — Page 1
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‘MISUSE’ CHARGED OF HUGE SUM IN CEMETERY FUND $400,000 ‘Misapplied’ by Directors of Glen Haven Association, Declares Judge Rochford, Receiver., BITTER ACCUSATIONS ARE HURLED Plan for Reorganization Offered by Attorney for Officials Spurned by Counsel for Creditors. Charges, denials,, and recriminations were hurled thick and fast today in superior court four, when an attempt of former directors of the Glen Haven Cemetery Association to dissolve the receivership met with spirited opposition. Tentative reorganization plans advanced by Merle N. A. Walker, attorney for the officials, were scorned by J. J. Rochford, receiver; his son, Paul Rochford, attorney for a group of creditors, and Paul C. Wetter, representing lot owners. “It is most presumptuous for these men, who have
pillaged funds from this corporation, to ask that it be returned to their hands,” the elder Rochford asserted. “More than SBOO,OOO passed through their hands, and when I became receiver, I found only $1.83 in the Indiana National bank,” he declared. “Misapplication" Is Charged He charged that at least $400,000 had been "misapplied and misap- ! propriated by the men who wete j trusted in this community.” Walker opened the hearing with presentation of a plan whereby additional funds would be available for operation of the cemetery, provided the receivership was dissolved. He suggested that Dwight Ritter, former director, would serve as manager without pay. A proposition to give creditors a ten-year mortgage, plus a $2,000 payment on account, was rejected firmly by Paul Rochford. "My clients have taken note after note from you people, and we have all we w r ant,” he stated flatly. The receiver declared that there w'ere insufficient funds in the receivership to pay costs of administration, amounting to approximately $3,000. Advances Money Himself “The receipts have been about $1,083, and the remainder of the $3,000 has been advanced from my own pocket, with the approval of the court,” the elder Rochford said. In defense against the attack j launched by the Rochfords on the former officials, Walker stated that I “the directors are anxious to | straighten this thing out.” “They have more at stake than any one,” he declared. “They put j their money into the association—” j “Yes, but never forget, I also put j money into the cemetery, and those \ men got it,” interjected Wetter ris- i ing to his feet with the outburst Demands Fund Protection Wetter, who purchased several lots when the cemetery, located on Kessler boulevard, was floated byj the directors, has played a leading part in the organization of lot owners. In a statement to the court, Wetter pointed out that a perpetual care fund, totaling $89,000, and representing the result of an agreement which set aside a per cent of all receipts, was the property of the lot owners and should be protected. “The receiver should be instructed to proceed against the directors and all others responsible, to recover this fund,” Wetter demanded. In commenting on reorganization j plans, Wetter declared that the lot i owners “will be glad to see any j workable program in operation, be-, cause that's the only way they'll! ever get anything.” The receiver declared that within a few d,.ys he would reveal the details of a new' plan of reorganization, which will have the backing of legitimate business men of unquestioned capital and character.” j Judge Weir informed the attorneys that the court would await further action on their part regarding reorganization moves before j making any ruling. HOLD THEFT SUSPECTS Two Charged With Stealing Battery Plates from Rail Property. Big Four railroad detectives today held for city police Fred Meyers, 25.! and George Miller. 30, of 1620 Concord street. The detectives said they caught Meyers and Miller with a truckload of battery plates stolen front railroad property. The truck was the property of John Rubin, 3112 West North street. Times Index Page Book-A-Day 13 Bridge 9 Broun Column 6 City Briefs 12 Classified 14 Comics 15 Crossword Puzzle 13 Curious World 15 Dietz on Science 13 Editorial 6 Financial 12 Fishing 11 Hickman Theater Review 13 Lippmann Column 12 Obituaries 2 Serial Story 15 Sports 10, 11 Talburt Cartoon 6 Vital Statistics 13 Womans Page 8
The Indianapolis Times Fair tonight and Wednesday, except a probability of a local thunderstorm; continued warm.
VOLUME 45—NUMBER 40
FOREIGN BONDS 'SPREE' CHAR6ED Kahn Claims Reckless Bidding Ruined American Buyers of Securities. BY LYLE C. WILSON United Press Staff Correspondent WASHINGTON, June 27.—0tt0 H. Kahn, head of Kuhn, Loeb & Cos., charged today before the senate stock market investigating committee that in “two mad years,” from 1926 to 1928, American international bankers went in a foolish, reckless bidding spree for foreign bonds to the det-
riment of the American investors, who ultimately bought the securities. “Who were those bankers?” demanded Senator Edward P. Costigan (Dem., Colo.) “I hope, you w ill not ask me to say whether the leading bankers were represented there,” Kahn replied, and when pressed pleaded.
"I am six years older now than I was then, and my memory is not what it was.” Kahn was the first witness in the investigation of Kuhn. Loeb & Cos. For this public appearance, the little man discarded the famous cloak which marks him at Manhattan first nights. The long, ivory cigaret holders, waved so judiciously during intermissions at the Metropolitan opera house, did not appear. Leaning forward slightly, arms folded and speaking with easy precision, Kahn compared himself and his bank in its relation to railroads to a physician in his relation to a sick man. SEEK ARREST OF 7 ON LICENSE CHARGES City Judge to Ask State Police to Make Roundup. State police will be asked to arrest seven of thirty-eight motorists ordered into court Monday for failure to have driver’s licenses, Municipal Judge Dewey S. Myers announced today. The thirty-eight were notified to appear by motorcycle officer Harry Smith. All of the seven who did not appear have rural route addresses. Each of the thirty-one in court today had licenses, obtained since they were notified to appear, and all were released. POLICE HEAD STRICKEN South Bend Official Recovering From Blood Poisoning. By T nited Press DENVER, Colo., June 27.—John B. Kuespert, police chief of South Bend, Ind., was recovering today from a case of blood poisoning in his right foot. Chief Kuespert arrived here bytrain from the Mesa Verde national park where the foot became infected and was removed to the home of friends. He was accompanied by his wife, his son, and his daughter-in-law.
Lippmann in London Walter Lippmann is in London, attending the world economic conference, and the first of his articles direct from the scene of this epochal conclave appears today on The Times financial page. While he is abroad, he will write at least six articles on the problems before the conference, the viewpoints of the different nations concerned, the progress of the parley, and give his analysis of the situation. He will remain in the British capital until early in July. Mr. Lippmann's dispatches will bring to Times readers information about the conference which they could get from no other writer, giving the views of an authority on economics who is acknowledged to rank with the world's greatest. One sentence from the Nation's Business for June is sufficient to establish this rating: “The journalist who has the greatest influence on Washington thought these days is Walter Lippmann.” Read his first article from London on the Snancial page today.
CHILD LABOR BAN LIKELY BY COTTON GROUP Leader Says $lO Week Minimum Would Oust ‘Baby Workers.’ URGE 40-HOUR WEEK First Industry Hearing Under Recovery Act Is Begun. BY H. O. Thompson United Press Staff Correspondent WASHINGTON, June 27.—Child labor in the cotton textile industry probably will be eliminated through application of a code of fair competition, George A. Sloan, president of the Cotton Textile Institute said today at the first of the industry hearings under the national recovery administration. dloan, recognizing complaints which have been made since the presentation of the textile industry’s proposed code, said he and his associates would be glad to deal with the child labor problem. “In the first place,” Sloan said, “setting of the minimum wage at $lO would make the hiring of children uneconomical. Urges 40-Hour Week “The number of children under 16 employed in the cott n textile industry is less than 2 per cent of the total. Application of this code probably would eliminate even the small percentage now employed.” Sloan, representing the textile industry's argument for an agreement to set a minimum wage of $lO and a maximum work week of forty hours, said such a code would increase the present 400,000 textile workers by an additional 100,000. Destructive conditions such as overcapacity, overproduction and price cuttinf even to points below the cost of production would be remedied, he said, under the provisions. Sloan read a telegram from the child labor committee of New York, asking him to consider an amendment to the code outlawing employment of children under 16. Injects Tariff Issue “We are entirely willing to consider the matter,” he said, “and it may be desirable to provide for it in a supplementary code.” The tariff issue was injected into the hearing by Sloan, who said protection must be given to prevent competition that would divert trade to foreign industries. He pointed out that the increased cost of production lunder the textile code would in effect constitute a discrimination against American industry. GOP IS SUSPENDED FDR AUTO CRAGKUP Pleads for Another Chance Before Safety Board. Pleading for another chance, Patrick Welch, patrolman, involved in a recent automobile accident in which a woman was injured, was suspended thirty days by the board of safety today. Welch placed his resignation in the hands of the board with the understanding that it will become effective at the will of the board. While driving his car, Welch, said by fellow officers to have been under the influence of liquor, ignored a traffic signal at New York and Meridian streets, colliding with another car. BONDSMAN'S TROUBLES GROW: FACES EVICTION Donald Underwood, Accused in Hijacking, Is Sued by Landlord. Difficulties of Donald Underwood, professional bondsman. charged with complicity in hijacking of a truckload of beer, were increased today when George Yandes, his landlord, filed suit in superior court two for posssession and damages for rental of Underwood's offices at 27 South Alabina street. Yandes charges two months rent at $45 a month is due. GETS UFEJFoFsLAYING Otis Turner Sentenced for Murders of Andrew and Oral Reedy. By l nilcd Press ' SULLIVAN. Ind.. June 27.—Otis Turner, Hymera. convicted on charges of second degree murder last month in connection with the farm mortgage slaying of Andrew and Oral Reedy, was sentenced to life imprisonment today. Judge Martin E. Pigg pronounced sentence after overruling a motion for anew trial.
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INDIANAPOLIS, TUESDAY, JUNE 27, 1933
WHEAT PASSES $1 PRICE LEVEL FOR DECEMBER, MAY DELIVERIES
Mayor Watches Cop Nab Fleeing Bandit Suspects
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Left, Patrolman Fred Swego. Right above, Leo Francis and Edward T. Young.
Shots Fired in Midnight Race Bring Sullivan to Scene; Publicly Commends Policeman. As Mayor Reginald H. Sullivan removed his shoes preparatory to retiring at midnight a fusillade of shots rang out in the stillness surrounding his home at 503 North Capitol avenue. The mayor hastily donned his clothes and rushed into the street'in, time to see Patrolman Fred Swego, riding on the running board of a careening taxicab, end the mad dash of a car carrying two alleged bandits. Swego emptied his revolver at the car.
STATE INCOME TAX HELD VALID Judge Upholds Statute in Ruling on Realtor’s Test Suit. In a ruling in superior court five today Judge Russell J. Ryan upheld constitutionality of the gross income tax law' enacted by the 1933 legislature. The decision was in a suit filed by J. Harry Miles, Indianapolis Real Estate Board president, attacking the law. tions from Indianapolis civic groups opposing the law'. Miles’ attorneys have not decided w'hether to appeal to the state supreme court. “Ryan’s decision, holding the gross income tax law constitutional in its major provisions, is good news,” Governor Paul V. McNutt said. “Without. the revenue from the gross income tax law, not only the state financial situation, but that of hundreds of school units, would be critical.” BODIES OF ATLANTIC AIRMENME FOUND Spaniards’ Wrecked Airplane Located in Mexico. Bii Time* Special MEXICO CITY. June 27.—The pilot boat Coloso moved dow'n the coast today to pick up the bodies of Captain Mariano Barberan and Lieutenant Joaquin Collar. Spanish aviators, who disappeared a week ago on a Havana-Mexico City flight after spanning the Atlantic in the longest over-w'ater flight ever made. Emilio Balcazar, a driller for the Aquila Oil Company, reported to the government he found the wrecked airplane, “Four Winds,” and the broken bodies of the transAtlantic aviators on a palm-cov-ered island in the coastal lagoon or Lake of Le Machona, betw/een Puerto Mexico and Santa Ana bay. MAN WHO WALK HOME IS FREED ‘Nig’ Strolls Out of Marshal’s Office at Peace With World. Irw'in (Nig) Goldman, the man who wouldn't walk home from an auto ride with a woman, walked out of the United States marshals office a free man today on a charge of- uttering and possession of a counterfeit $1 bill. The charge was dropped for insufficient evidence at Goldmans hearing today before United States Commissioner Howard S. Young. • Nig” told a tale of receiving the dollar bill as taxi fare from a woman after a “pick-up” date in the Crow's Nest area of the city. He was charged with attempting to pass the bill in payment for a soft drink. Hourly Temperatures 6 a. m 74 10 a. m 87 7a. m 79 11 a. m 90 Ba. m 83 12 (noon).. 90 9 a. m 85 1 ,p. m 93
The chase of the two men arrested by Swego, Leo Francis, 103 West Walnut street, and Edward T. Young, 28, roomer at 1338 West Thirtieth street, started at Wheeler’s rastaurant, 12 West Market street, and ended just north of Mayor Sullivan’s home when the tax forced the bandit car to the curb. Entered Restaurant Alone Today at city hall, Mayor Sullivan will go before the board of safety to publicly commend Swego’s action. The car was stopped near the restaurant shortly before midnight. Leaving Young in the car, double parked at the curb, Francis entered the restaurant alone, according to a report to police by Glenn Layton, 29, of 2350 North Delaware street, night manager of the restaurant. Demanding money, the bandit pulled a gun. Layton tried to ws ste time by fumbling with the cash register. Seizes $l5O From Till The bandit demanded that Layton hurry and seized $l5O from the till just as a customer entered. The robber dashed into the street, with Layton and the customer in pursuit, shouting to attract the attention of Swego, who was leaving his station as traffic officer at Illinois and Market streets. The car, gathering speed, swung on to North Illinois street. Swego leaped to the running board of a taxi cab driven by Leon Allgood, 1103 Kappes street. While scores looked on, the chase, joined by hastily summoned police radio cars moved northwest into Indiana avenue then north on Capitol. Officers Open Fire Near North Street the taxi came abreast of the car and Swego ordered the driver to halt. When the driver failed to obey, Swego opened fire directly in front of the mayor's house. When Sullivan reached the spot where the chase ended, they found Swego holding the two prisoners while a crowd, aroused by the shots, gathered. He congratulated the officer. Later Mayor Sullivan said: .“Swego’s work deserves-the commendation of all citizens. The city should be proud to have men in the police department who conduct themselves so courageously.” Francis and Young are charged with robbery and auto banditry. PIG, BURIED MONTH IN DITCH, IS UNHARMED Swine, Dug From “Prison.” Takes Nourishment After Release. By United Prr ROCHESTER. Ind., June 27.—A pig. buried a month in a ditch on the farm of Hugh Norris, near here, took nourishment again today, apparently unharmed by its imprisonment. The pig disappeared May 27. It was dug from the ditch Monday by Hugh Norris Jr., after he saw a part of the snout protruding from freshly-turned dirt. The pig was believed to have been entombed when a bank of the ditch gave way under its weight. SUNSTROKE IS ~FATAL Rochester Man Dies of Attack Suffered Week Ago. By United Press ROCHESTER. Ind., June 27.—A sunstroke suffered a week ago proved fatal here to Thomas D. Perdue, 29. <
CONGRESS TO BACK TARIFF CUTJSCLAIM Any Roosevelt Plan Sure of Support, World Parley Told. BY HARRY FLORY United Press Staff Correspondent LONDON, June 27—Congress will ratify any tariff agreement proposed by President Roosevelt, Representative Samuel D. Mcßeynolds, chairman of the house foreign affairs committee, assured a private meeting of the economic sub-committee of the world economic conference today. He also said the United States delegation here is willing to consider any tariff reduction agreements within the scope of Secretary of State Cordell Hull’s tariff resolution, presented to the conference. Mcßeynolds denounced the Haw-ley-Smoot tariff act, blaming the Republicans for it and contending that the Democrats had opposed it. However, replying to an attack by Walter Stucki of Switzerland against United States tariffs, he said Europe’s quota system was equally objectionable. France Clings to Plan He pointed out that the United States’ domestic policy already had restored 1,000.000 men to jobs and increased commodity prices 16 per cent. “We hope,” he continued, “that other nations can do the same thing. We can aid in this by reducing tariffs and cutting off trade barriers and quotas.” France clung tenaciously, despite American opposition, to her insistence that currency stabilization must lead, the world to better times. With the conference awaiting eagerly and somewhat nervously the arrival of Professor Raymond Moley with President Roosevelt's new instructions to the American delegation, and with reports current that Holland might go off the gold standard, Georges Bonnet, French finance minister, outlined his country’s policy to the monetary subcommittee. ' Bonnet Makes Appeal In a strong appeal for stable monies, Bonnet said little of permanent value could be accomplished toward- bringing the world back to normal until nations agreed to stabilize their currencies. Bonnet, Dr. Alberto Beneduce of Italy, and Alfred Sarasin, president of the governing board of the Swiss State bank, all showed, in a series of speeches that wound up the subcommittee’s long general discussion, support for Great Britain's policies, rather than those of the United States as expressed Monday by Senator James Couzens (Rep., Mich.), of the American delegation. 1,300 DRY WORKERS WILL BE DISMISSED Ouster of Bureau Aids to Save Millions. By United Press WASHINGTON. June 27.—The prohibition bureau will dismiss more than 1,300 employes at the 'end of this week, effecting an annual saving of $4,000,000, Attorney General Homer Cummings said today. M’NUTT RADIO SPEAKER Governor "..eak on Program of National Education Association. Governor Paul V. McNutt will speak Monday on a radio program sponsored by the National Education Association during its annual convention in Chicago. “A State Meets the Educational Needs of Its Children,” will be McNutt's topic. The program will be broadcast over the NBC-WEAF network from 4 to 4:30 p. m. Mid-west stations carrying th& program will include WTAM and WSM.
West Virginia , California Vote on Dry Act Repeal
By United Press Voters in two more states—West Virginia and California—went to the polls today to vote on repeal of the eighteenth amendment. The New York state convention, heavily committed to repeal, met in Albany under the presidency of former Governor Alfred E. Smith, pioneer in the fight against prohibition. Should both West Virginia and California vote wet they will be the fifteenth and sixteenth states to do so. Repeal has been favored in each of the fourteen states that has voted so far. In West Virginia, considered a “doubtful state,” betting odds were 3 to 1 in favor of the wets, though both sides claimed victory. The •
Entered as Reccnd-Clasa Matter at Tostoffice. Indianapolis
Crops Destruction by Hot, Dry Weather Goes On, Although Scattering of Showers Temporarily Causes Market Pause. CORN CLOSES 3 CENTS HIGHER Oats and Rye Climb in Chicago Pits; Chief Interest in New York Commodity Trading Is in Gains by Cotton. BY HAROLD E. RAINVILLE United Press Staff Correspondent CHICAGO, June 27.—Dollar wheat became a reality on the Board of Trade today as both December and May deliveries pushed above that figure, May touching $1.05' t at one time. It was a repetition of Monday’s active session, with bullishness rampant although the volume of 208,000,000 bushels, third largest in the history of the exchange, probably will not be equaled.
PUBLIC ENEMY NO.HNDICTED Murray Humphries Accused of Federal Income Tax Evasions. By United Press CHICAGO. June 27.—Federal indictments charging income tax evasions were returned today against Murray Humphreys, the man who became Chicago’s No. 1 public enemy when Alphonse (Scarface Al) Capone was taken to prison. The indictments were returned as a climax to the government’s exten-
Humphreys
eluding tax evasions of more than $20,000. The government investigators charged that over the three-year period Humphreys’ income amounted to $136,000. on which he should have paid $26,108.04. Instead, it was charged. Humphreys paid only $2.967.53 in income taxes. Indicted with Humphreys was Morris I. Gordon, an official of the Meadowmobr dairy, one of the many business enterprises in which Humphreys is alleged to have been interested. Gordon was charged with perjury in connection with testimony beofre the grand jury, Under federal statutes, Humphreys can be sentenced to a total of sixteen years in prison and fined a maximum of $31,000 upon conviction under the indictments. Dwight H. Green, federal district attorney, revealed it was discovered that Humphreys was interested in dozens of differene businesses. HOOSIER IDENTIFIED AS OHIO BANK BANDIT Drove Right Through Posse, Suspect Laughingly Admits. By Times Special WARSAW, Ind., June 27.—Merritt Longbrake, 37, of Claypool, was identified today as the bandit who held up the Hicksville (O.) bank, April 18, obtaining $2,900. The identity was established by Henry Wentworth, assistant cashier. Longbrake jokingly asked Wentworth if he remembered having to lie prone on £he floor during the holdup. The prisoner added that after the robbery he drove his automobile through a posse which had formed in a small town near Hicksville. “By going slow, I didn’t arouse any suspicion,” he explained. He is being held with his brother, Herbert, 31, of Mishawaka, and John Ellis, 29, of South Bend, in connection with bank robberies at Hicksville and Huntsville, O.
Last legislature had a vast majority. California wets campaigned on the premise that repeal would help the state's grape industry. Both sides claimed victory. The state’s dry laws were repealed in a popular election last November. Two states where elections had been held previously, formally ratified the twenty-first repeal amendment at conventions Monday. They were Indiana and Massachusetts. The score to date: For repeal: New York, New Jersey, Rhode Island, Illinois, Michigan, Nevada, Delaware, Wyoming, Indiana, Wisconsin, Massachusetts, Connecticut, New Hampshire and lowa. Against repeal: None. u
HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents
Wheat prices were the highest since Aug. 4, 1930, and all deliveries of all grains were the highest in over two years. Crop destruction by hot weather went on apace .although a scattering of showers and the forecast for more gave the market a temporary pause shortly before noon, and there was a reaction of more than a cent. The finish in all grains was on the way up despite profit-taking. Big Gains Are Scored At the close wheat was 5% to 6*4 cents higher, corn 34 to 3% cents higher, oats 2% to 2% cents higher, rye 34 to 4% cents higher and barley up 6 to 7 cents. Provisions were sharply higher. Minneapolis wheat rose as much as 7 cents att he start today. Liverpool continued firm, but failed to make a full response, closing 14, to 1% cents higher. Cash prices were 2 to 3 cents higher. Receipts were nine cars. Corn lost part of a substantial gain that had set new highs for more than two years on the forecast for showers. The market held strong, however, at 2% to 3 cents higher at mid-session. Cash prices were 1 to 3 cents higher. Receipts were 282 cars. Interest in Cotton High All deliveries of oats and rye set new highs early, and oats was 2 to 24 cents higher at mid-morning while rye was 24 to 2% cents higher. More damage was reported in oats. Cash prices were 2 cents to 3 cents higher. Receipts were twenty-three cars. New York's commodity interest chiefly centered in cotton. After an easier opening cotton started forward again and reached anew seasonal high for gains arour J one dollar a bale. Rubber was up 11 to 19 points at the opening, silver futures showed gains of more than 1 cent an ounce, silk trading was heavy in a wide range. Rails Lead Stocks Rise By 1 nitfd Prrn% NEW YORK, June 27.—Railroad shares featured a strong stock market session today. The group roc? 1 to 3 points to new highs since 1931. while other sections of the market followed and, despite profit-taking, maintained gains in active turnover. Several individual issues made more spectacular gains than the rails, but the latter were consistently strong. Motor shares were active and strong. General Motors came out 20,000 at 30 and then mounted to 304, up %, and anew top for the year, while Chrysler made anew high at 36%, up 14. Among the special issues to make broad gains were Celanese, Case, National Distillers, Industrial Rayon Johns-Manville and Allied Chemical. The latter reached 120, up 24, following declaration of the regular dividend. In the railroad group new highs for the year or longer were made by Southern Pacific 314, up 24; Southern Railway 254, up 14 • Erie 1 preferred 20, up 24; Union Pacific 1194, up 4; Baltimore & Ohio 25%, up 2%; Nickel Plate 16, up 2%; Nickel Plate preferred 23, up 2%; Pensylvania 30%, up %; and Louisville & Nashville 55%, up 14. Atchison rose nearly 3 points. FIREWORKS SALE IN OLD BUILDING PROBED Safety Board to Check Granting of Permit for When Block. Announcing Fourth of July fireworks regulations today, the safety board opened a probe of granting of a permit for sale of fireworks in the old When building. 38 North Pennsylvania. Stating that the building is hazardous, Donald S. Morris, board member, complained that granting the permi' was another instance of what he termed widespread ignoring of city ordinances. Sale of fireworks will be permitted only on Sunday and Monday, the board decreed. GRAIN TAX WRIT READY, Amount of Processing Levy Fixed by Agricultural Division. By United Pretn WASHINGTON, June 27.—A proclamation fixing the exact amount of the wheat processing tax, together with its effective date, was prepared today by the agricultural department.
sive fight against racketeering that has continued since similar tactics enabled federal prosecutors to send Capone to prison. Four counts were contained in the charges of the federal grand jury covering alleged income evasions over the years 1930, 1931 and 1932 and in-
