Page:Letter from Hodgins, Westrich, Clagett to IRS Agent in Charge regarding Al Capone, 1931.djvu/8

 These wire transfers in a few cases were sent to Al Capone in his own name and in most cases to him under the name of A. Costa, who can be identified as Al Capone by Western Union employees. See Exhibit H.

Mr. Mattingly, in his letter to Mr. Herrick, admits income of $100,000 for 1929, but inasmuch as the rough draft of this letter reads £2,000 a month, income has been fixed at $104,000. A deduction of $1.00 has been allowed for all years.

That the syndicate was selling beer is certain. During the Ralph Capone Trial checks were traces from Raplh Capone's bank account to Hak Brothers and John Kunz. Mr. Miles Hak and Mr. Kunz testified these checks were given in payment of beer. That they were in the alcohol business is equally certain. Many checks drawn on the account of Max Altershon was cashed by Frank Nitto. Mr Altershon states these checks were given in payment of alcohol; also a statement from another witness in Devenport, Iowa, saying L. Lipschultz from whom he purchased alcohol, told him (the witness) that (L. Lipschultz) was working for Al Capone.

Some time ago Special Agents Malone and Sullivan were drafted into the case for the purpose of developing evidence that would connect the syndicate with several houses of prostitution located in Stickney, Illinois Several of Jack Cuzik's checks were traced to the Maple Building Corporation, in payment on the building house a notorious joint called The Stockade. It is believed that Special Agents Sullivan and Malone were making progress in developing evidence to establish ownership by the syndicate of the Harlem Inn and the Shadow Inn, both in Stickney, Illinois, when the case broke and Al Capone pleaded guilty.

The only known assets of Al Capone is his home in Florida. See Appraisal, Exhibit S. Two automobiles partly paid for, personal effects, and his stock in the Hawthorne Kennel Club.

The report is made as near possible in accordance with the figures used in the indictments. Changes were made for the years 1925 and 1928, due to the correction of the figures, otherwise the figures used are the same. See Exhibit T. - 8 -