Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/36

SI-7085-F regarding what transpired in the Grand Jury proceedings. The sheet identified by Penovich contained entries showing the distribution of $32,687.00 on December 2, 1924, as follows:

Town $6,537.42 (Paid)

Ralph 1,634.35

Pete 1,634.35

Frank 5,720.22

J & A 5,720.22 (Paid)

Lew 5,720.22

D 5,720.22

$32,687.00

It also had the following entry: "Frank paid $17,500.00 for Al". (This sheet was explained to me by witnesses Shumway and Frank Pope as a record of the distribution of the syndicate profits of the Hawthorn Smoke Shop on hand December 2, 1924). On cross examination Penovich testified that he did not how what the entries meant; that it was an exact copy of a slip that he received at the end of each month's business of the syndicate from Ralph Capone and which he copied into the book; that he did not pay any of the amounts to the persons indicated; that he handled the cash in the business until surplus profits accumulated; and that at the end of the month or the first of the month, he would give it to Frank Pope to be distributed; that he, (Penovich) was a partner in the business when it started in May of 1924 and was supposed to get 25% but was cut to 5% by Ralph Capone; that he went into the business with Ralph Capone because he (Ralph) "could do the fixing" in Cicero with political powers, police departments or anyone that might be in a position to stop the gambling, or authorities that were in a position to arrest; such as the State's Attorney, the Mayor or the Sheriff; that he knew of these connections through conversations he had with Ralph Capone and because of the attentions shown to Ralph when he appeared in public places. Penovich had been a witness before the Federal Grand Jury and had not been used at the trial as a Government witness because it was plainly evident that he was attempting to shield Alphonse Capone. His answers to questions were misleading and false. He had been a member of the Capone organization for several years and was hostile to the Government. When an attempt was made to serve him with a Grand Jury subpoena in February of 1931, he was operating a gambling house for the organization at Hollywood, Florida. He avoided service and left the State of Florida the same day he learned that a subpoena was about to be served upon him. After several weeks he returned to Chicago for a day and we learned that he was at the home of Marie Moran, a woman with whom he lived and who ran a house of prostitution at 439 Belmont - 35 -