Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/6

SI-7085-F Our efforts were then directed toward locating Mr. Shumway who disappeared in April of 1926, in order to secure his testimony relating to the operation of the Capone gambling establishment known as the Hawthorne Smoke Shop. After a search of four months he was located at Miami, Florida, on February 18, 1931, a t which time I interviewed him. His sworn statement taken on that day was the first evidence secured in this investigation directly establishing taxable income to Alphonse Capone and proving the evasion of taxes by him. As it was advisable to have Mr. Shumway testify before the grand jury as soon as possible I had him return with me to Chicago and he appeared before the grand jury on February 24, 1931. Particular pains were taken to keep secret the fact that Mr. Shumway appeared before the grand jury and the defense did not learn that he was a government witness until he appeared in the court room at the trial. The book record relating to the profits of the gambling establishment which was identified by Mr. Shumway and his testimony relating to the net profits of the establishment were the basis for the first indictment covering the year 1924 reported against Alphonse Capone by the grand jury on March 13, 1931, and also for the counts covering the years 1925 and 1926 in the indictment against him reported by the grand jury on June 4, 1931.

There is submitted herewith as Exhibit No. 6, a sworn statement made by Mr. Leslie A. Shumway at Miami, Florida, on February 18, 1931, relating to the gambling business conducted by the taxpayer, Capone, in Cicero, Illinois. Mr. Shumway was cashier of the establishment and made the entries in the book record referred to above as Exhibit No. 5. His statement was as follows:

"State of Florida) ss County of Dade  )

Mr. Leslie A. Shuwway, of Miami Beach, Florida, being duly sworn, deposes and says:

From about June of 1924 until May of 1926 I was employed in Cicero, Illinois, in a gambling establishment. On account of the illegal nature of this business, it was necessary to move from place to place in order to conduct the business without interference from law officers. The business was first conducted at No. 4835 West 22nd Street in a ground floor store in the Western Hotel. A cigar store was operated - 6 -