INTERNAL REVENUE SERVICE
Chief, Intelligence Unit,
Bureau of Internal Revenue,
Dear Mr. Irey:
The Capone investigation is going steadily ahead. Not as fast as I would like to have it, but the evidence in the case against Al has been strengthened since my last letter to you.
I sent you a copy of an affidavit made by the Reverend H. C. Hoover, by which we established through admissions made by Al Capone to him that he (Capone) was the owner of the gambling establishment of which we have the book records reflecting a net profit of $574,000, during a period of twenty-four months. I am enclosing a copy of a statement made by Chester Bragg, prominent real estate dealer in Cicero, in which he states that Al Capone admitted to him that he was the owner of this establishment. I am enclosing a copy of a report made by David A. Morgan, investigator for the West Suburban Ministers and Citizens Association, of Cicero, and Berwyn, relating to a raid made by him and others on this gambling establishment, May 16, 1925. He states that during the raid he turned over to Lieutenant Davidson, the sheriff in charge of the raid, Mr. Al Capone, as the owner of the place, and I asked Morgan how he knew Al was the owner, and he stated that Al came to the place a few minutes after the establishment had been entered by the officers. The officers had placed a guard at the door with instructions not to allow any one to enter. Al demanded that he be let in and told Mr. Morgan, "I am the owner of this place". When Al entered the establishment during the raid, he also said to Morgen and others, "This is the last raid you will ever pull". It was the last raid Morgan ever pulled. Morgan and