We have secured further evidence relating to Sam Guznik, who was indicted for the years 1927 and 1928. The new evidence relates to the year 1929, and a new indictment covering the three years is to be returned by the grand jury within a day or two.
I was anxious to get an additional special agent started, promptly, on some new angles of the Capone case, and you wired instructions that Special Agent Sullivan be assigned. It was necessary for him to complete some work on the police cases, and he has not been available until this afternoon. I have some leads which may establish income to Capone from houses of prostitution, and Agents Sullivan and Malone are starting out this afternoon on that angle. I believe that this angle will warrant careful investigation, because in the event that we an show the connection of the taxpayer with this particularly disreputable business, we would probably be assured of a conviction in the event such evidence is brought before the jury. We also believe that if such evidence is presented, the court would, no doubt, inflict a heavier sentence than would be inflicted if the income related only to gambling.
With office space which was talked about when you were in Chicago has not materialized. We may get a small room suitable for one or two men to work in within a few days, if some furniture can be secured. The room is located next to the United States Commissioner's Office where there are a lot of questionable persons hanging around the halls. I would not feel it advisable to use that room unless we could have steel filing cabinets in which to lock our records. We are now using four cabinets in this office, and we are badly in need of two or three more, as the old desk I am using cannot be locked, and the ancient flat top desk being used by Revenue Agents Clagett, Westrich and Hodgins cannot be locked. The three revenue agents have one small desk between them. I have tried to get the use of an additional steel cabinet but they are needed for other purposes. I tried today to borrow a cabinet from the United States Attorney's Office, and they are "to let me know about it". That is the usual stall around here.
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