Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/28

SI-7085-F This investigation established that the taxpayer Al Capone was interested in certain houses of prostitution run by his syndicate since the early part of 1924. One of the houses of prostitution controlled by the Capone organization was the Harlem Inn at No. 4225 Harlem Avenue, Stickney, Illinois. 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). Reverend Hoover, Mr. Bragg and Mr. Morgan, as officers of the West Suburban Citizens Association, previously had forced the sheriff to action and had cooperated with him in raiding the Harlem Inn. 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. At the time of the murder of Assistant States Attorney McSwiggen, the Chicago police raided the Harlem Inn in their efforts to locate Al Capone who was accused of causing the murder of the states attorney but he was not found on the place. They did find a supply of firearms, a large amount of dynamite, whiskey and detailed records setting forth the daily income of the Harlem Inn derived from prostitutes. Photostate of the records secured during that raid are submitted herewith as Exhibits Nos. 21 and 21-A and 22 to 37, and they cover the period of eighteen days. They establish that the total income of the Harlem Inn from this source for that period amounted to $6,398.00. On that basis the yearly income of this house of prostitution was $129,000.00. These daily records cover the period from April 6, 1926 to April 25, 1926. On these daily sheets in column No. 1 appears the name of each prostitute connected with the Harlem Inn on that date. In column No. 2 appears the income of each prostitute for one night. In column No. 3 the entries represent 50% of the income or each prostitute taken by the establishment. In column No. 4 the entry represents 10% of the second column, which was the amount charged the prostitute by the establishment for towel service. In column No. 5 the entry represents the net income received by the prostitute; in column No.6 - 27 -