Bragg were knocked down and assaulted by the gang that afternoon when they left the gambling establishment. A month later three men were waiting in an alley near Morgan's garage when he returned home about midnight. They apparently were going to take him "for a ride", as they were armed and commanded him to accompany them. He resisted and they shot him, leaving him to die, but he was not fatally wounded and recovered in about a month. He said he decided the raiding business was not healthy and that Al Capone had made good his threat that it would be the last raid he would ever make. I am enclosing copies of affidavits made by J. Stanton and James Funk, telegraph operators, employed in the gambling establishment. They state that they were not allowed to permit employees of the establishment, or patrons, to frequent the wire office, as information coming over the wires relating to the races was strictly confidential. They further state that Al Capone was one of the few persons that entered the wire office. Shumway, the cashier, testifies that Al directed that he (Shumway) take charge of the funds on hand at the time of the raid. In view of the unqualified admissions of Al to three high class witnesses that he was the owner of the establishment, and the further evidence that Al directed the cashier (Shumway) to take charge of the currency on hand when the raid was made, it appears that the government is warranted in proceeding against him on account of his failure to report income from this source, and to pay the tax upon it.
We have secured further evidence relating to the transactions of Louis Lipschultz, who was indicted on March 15th. We have a new witness, Lawrence Pedigo, who states that he purchased alcohol from Louis Lipschultz in the years 1927 and 1928, valued at $60,000. We have cancelled checks which he made payable to Lipschultz, and which bear Lipschultz's endorsement, covering about $20,000. We have bank records by which we trace the entire $60,000 from Pedigo into the hands of Louis Lipschultz. This witness states that Lipschultz informed him that he worked for Al Capone. He stated further that several of the shipments of alcohol which he secured from Lipschultz were analyzed by a chemist in Rock Island, Illinois, and that it was necessary for him to return the shipments to Lipschultz because the alcohol was poisoned alcohol and he did not dare to sell it to his patrons.
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