Indianapolis Times, Indianapolis, Marion County, 20 June 1952 — Page 1
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ndianapolis Times
”
63d YEAR—NUMBER 100
Gambler Costello Got Judge Frees 20-Year "Holiday' on {Convicted on Taxes, Senator Says
BY CHESTER POTTER
Seripps-Howar
WASHINGTON, June 20—Frank Costello had an un-|
d Staff Writer
paid “charge account” with the Internal Revenue Bureau
for 20 years, Senator John Senate today.
He also said the bureau wrote off as ‘‘uncollectible” $315,156 in
taxes owed by (Dandy) Phil Kastel, chief lieutenant of Costello.
In his latest expose of how racketeers got preferred freatment from the bureau, Sen. Williams cited some of the rackets and businesses from which Costello and Kastel made hundreds of thousands of dollars at a time when the bureau could find no assets to attach for delinquent taxes. Sen. Williams could find no record of where the government, prosecuted Frank Costello for his! failure to file tax returns for the| years 1926-32.
‘Fair Deal Boasting’
“The Fair Deal administration] has done a lot of boasting about | being the defender of the average man,” the Delaware Republican) said, “However, that claim has | a hollow ring when one observes| the manner in which it has en-| forced the income tax laws] against America’s most notorious) racketeers as compared with the! manner in which our tax laws are|
being enforced against the aver-|
age taxpayer. “What Frank. Costello Philip Kastel own today; I do not| know, but it is an established fact they did possess large as-| sets during the period in which, they were allowed to remain de-| linquent in their income taxes.
“During this period, the Treasury Department was not only. claiming inability to locate any assets worth attaching, but also was actually writing off a substantial part of their debts _uncollectible.”
Sen. Williams said for almost|/iness. Kastel got $33,459 out of/rant.
20 years, the bureau carri its delinquent books $30,000 o by Costello and his wife, Loretta, for the years in| which no tax returns were Med. Costello repeatedly tried’to settle this claim by compromise, offers. When revenue agents tried to collect the money, Sen. Wil-| liams said, they cofildn't find! anything Costello owned.
on’
But in 1044, Costello accident-| |aries as head of the corporation. |
ally left $27,200 in cash in a New! York taxicab. The money was! turned over to police and when! Costello claimed it; Uncle Sam finally attached it. In 1947, a|
J. Williams charged in the
While on the Other Hand
By Seripps-Howard Newspapers
WASHINGTON, June The Internal Revenue Bureau threatened to sell a Houston man's $5000 home because he owed $3.90 in taxes, Sen. Williams said today. To show the contrast between the way the Houston man was | treated as compared with racketeers Frank Costello and “Dandy” Phil Kastel, the Sen-
ator put in the record a story |
from the Houston Press, Scripps-Howard newspaper.
| @ This story, published May 27,
1952, told how Silas Gray, a retired and disabled watch-
maker, got a notice to pay the | $3.90 within 10 days or face |
issuance of a warrant authoriz-
ing “the seizure or sale of your |
property.” “I've hardly had time to pay the bill--and they threaten to sell my home,” Mr. Gray said.
{collectible,” the Senator continued,
and’ ‘Both of these individuals. were,
|erigaged in numerous prosperous; operations.”
Slot Machines
He listed the earnings of Costello and Kastel from the Lou-| isiana Mint Co., of New Orleans, |slot machine enterprise. Costello's
{take from 1942 to 1946 was $213.-|
896 and Kastel pocketed $255,896. Another New Orleans enterprise, the Créscent Music Co.,
23 showed Mrs. Costello and Kastel,
as partners in a juke box bus-!
'this, the Senator said, in 1944 and,
almost (1945. Mrs. Costello got the same in
for those years and about $7700
in previous years.
The Beverly Country Club, a he had issued only three search| ‘warrants in five years in such |
gambling house in New Orleans, was another Costello-Kastel ven-!
ture. Sen. Williams said Costello,
got $8299 from this source in 19486, with Kastel $10,826. In later years, Kastel drew $63,000 in sal-|
Couldn't Find Assets
Finally, Sen. Williams Costello formed the 79 Wall [Street Corp. on Apr. 26, 1944,
20—
Gaming Charge
Police Didn't Have Search Warrants
By JOHN V. WILSON
Police today were criticized |
for conducting raids without search warrants as 11 men 'were freed on gaming charges.
Municipal Court 3. They were arrested in a raid
May 11 at a “social club” at 2401 {Bethel Ave. | Lt. Joseph Klein testified he
entered the “club” without a {search warrant. He found two men shooting dice ard nine oth-! ers grouped around a table watch-| ing.
Cites ‘Reputation’
Lt. Klein said the place had a “bad reputation” and that he had received several reports of gam-| ing there. Judge Harry O. Chamerlin, {Criminal Court 1, declared:
“This is a case where there {should have been a search warrant.
“It would have been so easy to {get one. For the life of me, I don’t {see why you didn’t. I have no {doubt gaming was going on there {and these men should be pun\ished. But I ami compelled to dis\charge them.” | Explaining the search warrant w to the poli®e, Judge Chamber{lin said, “That’s the law of the (land. I didn’t make it.” | Judge Chamberlin pointed out {later that the police may apply, {to any judicial officers for a {search warrant. In Marion Coun~ {ty that would mean 25 courts. The judge explained the application for search warrant must {be based on “probable cause.” He ‘said he would consider the reputation of a gaming place as suffi-
The 11 were appealing convie-! tions from Judge Phillip L. Bayt,'
FRIDAY, JUNE 20,
|
1952
Entered as Second-Class Matter at Tosommee Indianapolis,
Indiana. Issued Daily.
Schricker Will Become Candidate For Senato
cient for issuing a search war- | Judge Chamberlin said he has] ever issued a search warrant for a gaming raid. Judge Saul! _
{I. Rabb, Criminal Court 2, said!
cases. Judge Bayt declared a search {warrant is not needed when po-
lice see gambling committed “In|
{their view.” “At the timé the case was| heard I was of the opinion there]
said. |was sufficient evidence to find
them guilty, The police must; ‘have testified they saw
court decision gave the bureau with himself listed as president, gambling.
$24,233. Reached Court
In another case,
and George Wolf, of New York |City, as treasurer.
“This corporation was formed, the bureau at a time when Frank Costello fined $50 and costs and sentenced |steal” and to make his case on claimed Costello owed $455,687 in owed the government over $30,.- [to 10 days in jail. The other nine this issue before the country.
Fined, Sentenced Two of the men had been
taxes and penalties for the years) 000,” Sen. Williams said, “and at! had been fined $25 and costs.
1936-40, inclusive: The income involved came from the earnings of a Louisiana novelty company
ia time when the Treasury Depart-| ment was ciaiming they were unable to find where Frank Cos-
Earlier, Judge Chamberlin re-|dividéd on some issues, but not
| versed the conviction of Jess] Anderson, 27081; W. 10th St.,
in which Kastel was a partner./tello owned any assets whereby bartender at a tavern at 2641!
This case finally reached ..the U. 8. Tax Court and the Fourth Circuit Court of Appeals, which ruled the government was wrong fn trying to collect from Costello. In fact, the result was Costello] got $32,713 in refunds. Costello applied the refund to|
partner, Kastel.
the debt could be collected.” Between June 1, 1944, and June 1, 1948, $305,000 in rents were collected from as president, drew only nominal salaries— $5000, $8000, $5500 and $6000. “To say the least, rather substantial
{time racketeers who have been heen shown that the defendant {he must make the real fighting Uncle Sam ¢laimed Kastel owed delinquent in their income taxes had
tenants of this! (building. Costello,
these are| investments) the delinquent tax owed by hisiand earnings for a couple of big-| freed,
| W. Michigan St., on a charge of possessing a slot machine. Police arrested Mr. Anderson Mar. 1 after a Camp Atterbury
| soldier complained- the bartender “pay off” on ai
had refused to “bingo” pinball. machine. Defense Attorney Sam Blum asked that Mr. Anderson be saying no evidence had!
“possession of or control |
$492,773 in interest and penalties and who have been pleading in- gover” the machine.
for 1936-37. This was reduced to $344,729 when the U. 8S. Tax Board of Appeals ruled out the penalty Assessment, “On Mar. 20, 1943," Sen. Wil-| Jiams said, “the balance of the] 1936 and 1937 accounts, totaling $344,729, was written off as uncollectible.” Three years later, approximately $52,000 was put back on the] books as money owed by Kastel,| and in 1947, this was reduced $32,713 by Costello’s refund. The remainder was Written off as #uncollectible,” the Senator said. |
“During the period in 1943 ini.
which Costello and Kastel were! delinquent in their income taxes, and even having a substantial portion of them canceled as un-|
abality to pay,” the Senator said.
‘You Can Be That
Master Salesman
How good a salesman are you? What de you do when the customer says ‘‘No”? Conrad N. Hilton, president of the Hilton Hotel chain, has the formula to make YOU the BEST salesman in your firm. He reveals his approach to master salesmanship in . .
‘FIVE .JASTER SALESMEN UNVEIL THEIR MAGIC Starting Monday IN THE TIME 8
Judge Chamberlin agreed, tell-| {ing police, “It seems to me you! i got the wrong man.’ Mr. Anderson had been sentenced to 30 days in jail and fined {$100 and costs by Speedway | | Magistrate George Ober. p
County Gets $423, 000
State Beverage Fees
| Marion County today was given | {$423,959.73 in the state distribu-| {tion of $2,071,595.7 in permit |
{fees by the State Alcoholic Bever-|
{age Commission. | Since repeal, the state has re[turned $54,823,187.33 to city, lcounty and school units of government.
the | Dwight: Eisenhower invades his |native Texas tomorrow to cut {loose on the so-called
a [feeling is that he should train
lke Prepares Blast
On Texa
Ike falling in Hine fn Rink: if | ing, Taft says.........Page 3 By CHARLES LUCEY { Scripps-Howard Staff Writer DENVER, June 20 Gen,
“Texas
The General's advisers are
lon this. The almost-unanimous {full firepower on the Taft forces involved in this explosive dispute lover Texas’ delegates to the {Chicago GOP convention. Mostly, the General's strategists] have insisted he should keep his campaign on a high plane and not descend to tough in-fighting, {always characteristic of this {stage of a nomination battle. But on the Texas issue they say
speech expected of him, or his cause could suffer. The speech Saturday night at| ‘Dallas will be extremely im‘portant in point of timing—it | comes just a ‘week before the!
| Republican National Committee] {meets at Chicago to consider thed
Honor Medal (Goes to Hoosier
| A Hoosier Marine killed -by his own heroic act today won the nation’s highest decoration—the | Congressional Medal of Honor. Named with seven other Ma{rine heroes who sacrificed their {lives in the Korean War was {19-year-old Cpl., Charles G. | Abrell, formerly of Terre Haute. | The youth who left high school tat 17 to enlist: inthe Marines learned the medal in action Nov. 110, 1951. In announcing the award, the {Marine Corps said Cpl. Abrell|
hiniself bodily into an enemy ma'ehinegun bunker, killing himself and the entire enemy guncrew. The son of Mrs. Bernice Abrell, now of Farmersburg, Cpl. Abrell |is believed to be the first Hoosier Marine to win the Medal of!
awards bing to 21 the number
{Marines in Korean fighting. Born in Terre Haute, Cpl. Abirell moved with. his family to {Nevada and enlisted there. His mother later returned to Indiana
his grandparents, Mr. and Mrs. {Earl Bowen, and his sister, Mary Jo. A brother, Paul, resides in Chicago.
lations are: 1st Lt. Frank N. | Mitchell, Newnan, Ga.; Sgt. Fred-| ‘erick W. Mausert III, Baltimore; |Cpl. Joseph Vittori, Bevegly,
'ton, Nampa, Ida. Pfe. Whitt L.' Moreland; Austin, Tex.
&
{dominated GOP
was killed: by his own grenade! {after he pulled the pin and threw!
{Honor in the Korean conflict. The |
of medals, of honor awarded to
and lives at Farmersburg with
Other men cited for the decor-!
Gomez, smaller loan John L. made the
Mass; Pfc. William B. Baugh, | Harrison, 0.; Pfc. Edward Omaha; Pfc. Herbert A. Liitle- Democrats:
as GOP Row
cases of disputed Selegatians from’ several states. It won't be enough, Gen. Tke has been told, to deliver a broadly principled exposition of the need for honesty in politics. Get down to cases, he is being urged, and spell out what happened in the choosing of Texas’ delegates.
The General has been told it can be done without name-calling or bombast by forcefully and simply presenting the facts and letting the public decide.
The contention of the Texas Ike forces is that they outvoted old guard supporters of Sen. Rob6rt A. Taft in district meetings all over Texas, but that the Tafttate committee ignored their legitimate claims and gave the Ohioan most of Texas’ 38 delegates.
The Taft forces insist the Eisenhower people were mostly Democrats who never had voted Republican and who had been advised, by newspaper ads and | postcards, that they could go for {Ike in the GOP district meetings iand still vote in’ the Texas Democratic primary. They say this utterly destroys any concept of party responsibility and does away with the {idea of parties picking their own | nominees and then fighting each {other in the November election. But the Ike people insist they | signed pledges which met requirements laid down by the Taft forces. They have prepared detailed legal briefs, complete with pictures, to submit to the GOP National Committee in Chicago. This issue goes beyond the present fight for the. presidential nomination. The cambination of a growing Southern dislike for the Truman Fair Deal, plus an industrialization which has brought . thousands from the North into Dixie has raised hopes for a two-party system. Eisenhower leaders argue it will never come under the Southern. old guard, whose only interest say Ike's men-—has been to keep control of whatever patronage comes its way. If the General makes the fighting speech which has been promised, it could have an important effect in setting the whole tone of his campaign from here to Chicago. He is writing the speech himself, rather than leaving it to ghostwriters, and the hope is for a good one.
Views on the News I ————
Dan Kidney IT WOULD BE NICE IF the war could be won on the playing fields of Chicago. » » ~ RUSSIA WANTS Sweden to understand that all oceans must become Red seas.
” ” ” JOHN L. LEWIS has offered $10 million of his miners’ money to the CIO steel ‘union. Phil Murray may remember the much
|
it turned out Lewis ‘didn’t want anything back ‘but
SKI HAPPY LOVELIES—These three water skiers will feature the Ski-Capades which will appear at Blue Lake in the 3000 block of W. Morris St. for a three-day stand under the sponsorship of the Marion County Junior Deputy Sheriffs, Inc. The show, which has five champions in its lineup, is scheduled here July 4-6.
Today’ s News, -.
in The Times
Garvey ‘Taps Senators for opposing seaway plans ...... Bishop to ordain son as Methodist deacon ......o0000e
Editorial Page
The steel strike hits home . . . an editorial Aseennee Mixed politics behind Interstate Commerce Commission job +. . Dear Boss . . . by Dan Kidney '...i.o.vuihs Long delay is urged in parley with Russia . . . Europe... by R. H. Shockford
National
Attorney's ouster “is ‘just the start,” McGranery declares Cut down in production could be expensive in money,
New mirrors reflect graceful trend Gadgets for cool comfort ve Mrs. Durward Kirby is proof you can mix a career with a family—Caprices Fashions from the West ....
Other Features: BridB0 avecssressessinen 35 COMICE viverernvesein 34,35 CroBaword :..coissensesee 35 Editorials ...... sivnssene 22 Radio, Television ........ 18 *Robert Ruark ..o.coveeese 21
EE I
Ed Sovola ....... sesasas 23 SPORE: oss vasvrtnsnnss 25-27 Har] WIBON «.cvessevrees 21 WOMBR'E. sis snsnesesasssB,P 14
What Goes on Here .....
Japan's Wartime Pilots To Be Reactivated
en years courses; Press
ago, was learned today.
ican troops in Japan to lease 100 American planes, them small training craft:
of Japanese defense force.
Sugar Ray Faces Loss
Page tion,
Page
Page
TOKYO, June 20 (UP)—Japan| plans to let its wartime pilots, grounded since the surrender sevtake refresher;
ports said the national police reserve has asked Amer-
most of The planes also would be used as part
Of Middleweight. Title
NEW YORK, June 20 (UP)—
|
For Race in
forced to yield to the demand
Reached for comment at the Statehouse, Gov, Séhricker said: { “All I can say now is I have received scores of letters and tele‘grams from earnest and insistent |friends urging me to be a candijdate for Senator. I will make a {statement in the next 24 hours.” | However, The Times learned | Gov. Schricker has reluctantly | consented to have his name |placed before the Democratic State Convention Tuesday but that he is still not seeking the job.
Prefers to Retire
The Governor would much rather retire from public life when his term ends Jan. 1. The only politician twice elected Governor of Indiana, Mr. Schricker made his decision to lead the Democrats in the fall because he felt he owed a further tour of duty to the party and the people of Indiana.
Persons close to the Governor |said he was conscious of an ob- | ligation to his friend and fellow| workers.
The Democratic State Committee, as well as big and little party officials over the state, have urged the Governor to run for the Senate, In addition, the Governor’s office reports he has scores of letters and telegrams from Re-| {publicans and independents plead- |
ling with him to be a candidate.
Against Sen. Jenner
Governor's decision to make one more race puts him squarely against Republican Sen, William E. Jenner, whe Was re~inominated by the vention” recently
Politicians regard this as one concurring opinion in
Xo the best matches in Indiana’s political history. Both are the 17 leading vote getters of their par[ties | For weeks, the Democratic high command has privately said the Governor would be a candidate “even if we have to draft him off the speaker's platform.”
Gov. Schricker has been named
. 22/the convention keynote speaker.
There are no other Democratic candidates for the Senate. Most
22 prospective candidates declined to
{enter the race when it became |known the Governor might accept
Page! the nomination.
3! Native Hoosier
| Gov. Schricker is the son of {German immigrant parents. He
planes, U, 8. defense, say {was born in North Judson, but airmen . . . by Jim Lucas.. 2 NOW has a home in Knox. | <The Governor has been a weekSports {ly newspaper editor and banker, . Page Later, he rose to state senator, Carl Erskine's ho-hitter...... 25|lieutenant governor and governor. Joe Williams ............. 25 Once, he was defeated for senator Field & Stream ........ Sav . 26/by Republican Homer E. CapePGA, other golf news........ .427| hart. Women's New Catholic Parish
To Be Organized Here
The Roman Catholic Chancery Office today announced the formation of a new parish to be {located in southeast Indianapolis. | Catholic families living in the {area between Our Lady of Lourdes Church and the Holy Name Church, Beech Grove, will be included in the new parish. Properties are in the 4900 block of Fletcher Ave. The Rev. Fr. John Herold, present pastor of the St. Augustine Church, Leopold, Ind., was commissioned to organize the new parish.
Fill Many Wants Through Want Ads
J Have you any idea the wide variety of things you can buy through the Want-Ads of The TIMES? Read them over every day and you'll find you can supply many of your needs and desires . . and at bargain prices, too!
it
For instance, in the long list of today’s TIMES WantAds you'll find such items as Red Chairs, Bass Viol, Juke Box, Malt Mixers, Speedgraphic and Equipment, Tricycle; 16” Electric Fan, Furniture and Appliances for every room in the house.
P atath chu “Thp ini ME Out OoPPOsl- thing but
The New York Boxing Commission ruled provisionally today that Sugar Ray Robinson’s middleweight crown will be vacated automatically if he takes the light. heavyweight title from Joey Maxim Monday night.
LOCAL TEMPERATURES BRAM. 39 10 A. Mm... T4
You cah also benefit by selling your no-longer-need
Tam... 8 lam... 8am. 61 12 (Noon) 7 fam... MN 1pm..."
+.
Governor Will Issue Statement on Plans
dn
24 Hours
By IRVING LEIBOWITZ . Gov. Henry F. Schricker will be the Pemocratic candk date for Senator, The Indianapolis Times learned today. " Pressure is so great on the 68-year-old Governor he i
s of the party.
GOV. SCHRICKER—Yields.
Court Blocks Impeachment.
Action Taken in Trustee ‘Bribe’ Case
| Loopholes in the state impeachiment law were admitted by an Indiana Supreme Court jurist-te-day as the high purt Blocked 2 Spencer Co d
In
Perfect” James A. Emmert who Spencer County ; Urdix B. Ewing had jurisdiction in the case of Township Trustee Frank Ayer, who was charged with “discriminating” against a job application of a former school teacher. ;
Temporary Writ He The high court had ordered a temporary writ of prohibition n the case Jan. 31. Ayer is charged in an affidavit with soliciting a bribe from the school teacher, Mrs. Margaret Thomas. Mrs. Thomas stated ih sworn testimony to The Times that Ayer had threatened not to sign her to another term of teaching unless she contributed to his campaign fund. She said she refused to contribute and subsequently was not rehired by Ayer. Judge Frank Gilkison wrote the main opinion in today's high court decision.
“The charges were not properly drawn,” he said in his opinion. The battle of legal wits being waged between the courts and County Prosecutor Volmer Frantz seemed to hinge on who had the authority to impeach a township trustee. The Spencer County iriat thought it fell within his court's jurisdiction. “If Ayer is guilty of a crime then the grand jury can impeach him,” said Judge Emmert.
Never Convicted
Ayer has not been convicted of any crime. He was indicted by the Spencer County grand jury on a charge of soliciting a.Dribe from a school She td t Charges were bro agaliis Ayer and two other township trustees in the county after sworn statements from three eachin charging bribe solicitation published in The Indianapols Times.
Prosecutor Franz said he's net too concerned about the i ment action being blocked by. the | Supreme Court. He said, “We still have’ “the criminal indictment against’ Ayer and the other two ryan which the grand jury charged them with soliciting bribes: en | school teachers.” , Zi:
i
PR
Drop Charges Jailbreak Pair Here
17-year-olds who the Marion County Ap were dismissed today. = Deputy Prosecutor Leb told Judge Saul I. Rabb, Court. 2, he bir Bw charges because Frm in ay on + Farm in May on a
iin _
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