Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/31

SI-7085-F There is attached as Exhibit No. 38, photostat of safe deposit box records of the Pinkert State Bank of Cicero, Illinois, covering a safe deposit box jointly rented by Alphonse Capone and Louis La Cava. Miss J. Alexander, an employee of the Pinkert State Bank identified Al Capone, the taxpayer in this case, as the same person who signed the contract for this box and who signed the various entry slips covering visits to the box from time to time. Before the Federal Grand Jury Mr. Louis La Cava testified that the daily records relating to the profits of the gambling business at Cicero were kept in this safe deposit box by Capone and himself. Testimony of Frank Pope, one of the managers of the Cicero gambling establishments, L. A. Shumway and other witnesses, established that La Cava made regular visits to the gambling establishment to inspect their record of profits, that he regularly collected the surplus and that he was regarded as the collector and representative of the owner of the business. La Cava claimed that all the collections from the business were turned over by him to Mike Merlo and Tony Lombardo. Merlo and Lombardo were murdered before La Cava testified so he knew that the government could not interview them to confirm or refute his statement.

There are submitted herewith as Exhibits Nos. 39, 40, 41 and 42 sworn statements of Frank Pope, Ben Pope, Louis La Cava and Peter Penovich, Jr, with reference to the operation of the gambling business at Cicero and the distribution of the profits from the business. Conflicting, indefinite, misleading and untruthful testimony was given by these witnesses during interviews in our office and later before the grand jury as they were members of the Capone organization each one being hostile to the government and they claimed they were afraid of reprisals from the Capone organization in the event the government used them as witnesses to convict their leader of evasion of income taxes. After a careful consideration of their statements, together with the testimony of L. A. Shumway (Exhibit No. 6 and No.6-A) and one sheet of the gambling record kept by Penovich and Shumway (Exhibit No. 43) it was found that during the year 1924 the net profits reflected in the book record (Exhibit No.5) of the gambling business in Cicero were divided as follows:

Louis Alterie, for John Torrio and Dion O'Bannion  18%

Dave Bates, for Dion O'Bannion and John Torrio     18%

Peter Penovich, Jr.                                 5%

Al Capone                                          41% - 30 -