Omaha Revenue
Officers Trap
Big Tax Dodgers
yMost Carefully Planned Con
spiracy to Defraud Govern
til ment Defeated With Con
viction of Coopers.
By J. T. ARMSTRONG.
Tax (lodgers, no matter how crafty
and wealthy, cannot successfully
avoid the vigilance of the govern
.i.iuent.
Officers of the Omaha revenue of
fice recently demonstrated this fact
i when they uncovered what they con
sider the most carefully planned con
spiracy to defraud the government
*ver brought to light under the
^revenue law.
, At t result of their activities, al
most $1,000,000 In taxes will be col
J lected, and two of Iowa's wealthiest
,citlxens have Just been sentenced to
pay heavy fines.
These two men are A. A. Cooper,
Jr., and W. F. Cooper, brothers, of
pubuque, la. They are sons of 4he
.late A. A. Cooper, founder of the
Cooper fortune, which was built on
the profits of the big Cooper Wagon
•qd Buggy company.
Fined >10,000 Each.
The brothers were sentenced Thurs
day by Federal Judge Scott to pay
i fines of $10,000 each. The Judge
denied their motions for new trials.
The investigation by the Omaha of
ficers and the convictions obtained
are without precedent. From its in
ception to its completion, the case
has been one of amaxing revelations.
Since the Cooper company was
organised in 1902, revenue officers de
clare. it has voluntarily paid only $58
to the government in taxes. The of
fleers estimate the company should
‘ . have paid an income tax of more
than $40,000 each year since the in
„ come tax law became effective in
1913.
More amaxing still are the methods
used in avoiding the payment of
• taxes. Records of sales of a tre
*. mendous volume of merchandise were
omitted from the company’s books.
Bank accounts under fictitious names
Tvere opened. And insurance money
collected by the company on several
occasions for alleged fire losses was
secreted.
Investigations of No Avail.
Previous Investigations proved of
no avail, so carefully was the plan
to defraud the government worked
out. The last and succesaful Investi
gation did not start until the death
* of the senior Cooper in 1919.
At the time of his death, It was
'Alleged that he died penniless. Au
gusta Maria King, a granddaughter,
brought auit a short time later, how
ever, asserting that her grandfather's
estate constituted a fortune. She in
sisted that she be given her share of
«the es ata, and asked the appointment
of an administrator.
Her petition was granted, but the
case was postponed, and revenue of-,
ficers allege the granddaughter was
paid a large sum of money to drop
| the case. The first adm.nistrator ;
- %^tben was discharged, and Fred Bell,
I Wither of A. A, -fflusi Cooper, Jr.,
I waa*Pf,oln,cd administrator.
Petition Resisted.
i an aftermath of this case, how
vfc, th® law firm of Hlrd, Henehan,
gaith A O'Connor of Dubuque, who
jepresented the Cooper heire, brought
suit to collect attorneys’ fees. They
f'l petitioned the court for a rule re
1 nulling the defendants to produce
books and papers showing the amount
and value of the estate. This pell
tion was resisted on the grounds,
among others, that such information
might be valuable to the government
in determining the federal tax due
from the estate.
The death of the elder Cooper oc
curred after the passage of xfrhat is
known as the federal estate tax law,
which imposes a tax and requ.res the
filing of a return on estates of more
than $50,000.
Despite reports to the contrary, offi
cials of the collectors office were
strong In the belief that the estate
was amenable to this law. They
asked representatives of the estate
to file returns. The Cooper broth*ra
refused this request, alleging that all
their fathers property had been
transferred by him during his life
time.
Real Query Starts.
Due to the insistence of the collec
tor’s office at Dubuque and the activ
ity of Charles Mcl*ean of that office,
Administrator Hell filed a return
which showed no tax due on the
estate.
J Then the sweeping investigation, di
! rected by James J. Drakeford, imer
• nal revenue agent in charge of the
2 Omaha office, really was started. Tho
J fighting spirit of Mr. Drakeford vvr.s
• roused by the reports of field officers
} He ordered the investigation to de
J termine the correctness of the re
• turn filed by the Cooper estate, lie
J was determined that It was to ho u
i thorough one.
1 It fell to the lot of J. H. .Sherlock
2 of the Omaha office and A. J. Nelson
J of Dubuque to carry on the Invest!
Sgatlon. On April 21, 1921, these offi
cers served upon William F. C**o|ier.
president of th® A. A. Cooper com
• pany, Inc., a revenue agent's sub
| puma duces tecum, ordering the pro
{ duction of the books of the concern
* and all the hooks of A. A. Cooper, sr.,
• which would disdoHo the nature and
value of the assets of his estate at
•he time of his death.
• .Subpoena Mak* s History.
J Thia subpoena wna served under
• section 1305 of tbe revenue a*'t of
( 1913. It is destined to make history
1 In the annals of the Income tax law.
I For previous to Its service there haii
I been no interpretation by any court
J of its meaning and powers.
J Hut the subpoena failed to bring
• forth the necessary Isjoks and records
2 and the officers determined to make
J an Independent investigation. They
irpent many days examining the bank
ledger sheets In Dubuque and event
ually sorted out the larger and more
active deposits in the various banks
of both Dubuque and Chicago. Nor
did they overlook large amounts In
2 banka which had been collected for
J fire losses.
» W'lth this Information In hand,
! Agent In Charge Drakeford directed
I that the Coopers as Individuals and
•11 corporations of which they were
officers be questioned snd Investigat
ed to determine the correctness of
th# income tax returns filed by them
either as Individuals or ns officers of
corporations.
t The income tax Investigation was
I
1
u. S^Officers Who Unraveled Huge Income Tax Plot
No, 1,
•I. H. Sherlock, chief estate tax offi
cer of the Omaha division, who
opened the Cooper Investigation.
No. 2.
James J. Drakcford, revenue agent,
in charge of the Omaha division, un
der whose supervision the revenue
agents worked in ilie Cooper case.
No. 3.
Here are the revenue agents and
Department of Justice officers who
built up ami won the case against the
combined with the estate tax inquiry
in May, 1921, and Revenue Agent
Charles F. Reilly was detailed to as
sist. A few months Liter this com
olned invts t «ti4»n was completed.
Austin A. t »pcr and William F.
Cooper were cted on a number of
chargee by a f tier.-1 grand jury at
Cedar Raj Os. In., in April. 1922.
In br> ’ I** inch* ..lent charged
conspir; ■ ♦fraud ,n : nrnent
in filing . !sc and nt re
turns as officers of the \. a. Cooper
Wagon and Ruggy company. Ad
ditional indictments woi> re urned by
the federal grand jury at Dubuque,
one of which was d.rec ed against
Katherine Cooper, a sister: and an*
ether against Phil Ryder, an officer
of the Julien Hotel company, A. A
fGust Cooper is a principal stock
holder in the Julien Dubuque hotel.
Altogether there were 13 indict
ments returned against the Coopers
and Ryder, charging conspiracy to
defraud, false income returns and
perjury.
Spectacular Trial.
The trial of the two Cooper broth
ers. which ended in their conviction
and which was only recently complet
ed. ’was one of the most spectacular!
legal battles in that section of the
country. Fxpensive legal talent was
employed by the Coopers and array
ed against the government.
For almost a month the battle was
waged. The government, in present
ing its case, introduced its discover
ies that dozens of bank accounts di
rectly under the control of the Coop
ers were en’ered under fictitious
names, in an effort to throw the fax
collet- . m i»ff . <* t II.
The cr,«e c? /’ ! in the conviction
and resulting fines of the two men.
T\Hfb#' other indictments remain t*«
be tried.
Total coat of the trial is estimated
at $50,000. Tlie Coopers were ordered
to pay all of this amount.ju ad
—-— ------ -- ixi - i
OMAHA MONDAY. JULY 9
hirgpn* < Irrn* In thr World (bring
a Dudv §tr*«t I ’ i. r. i l »•
RfMrrf on *»Ip nn f»ny tf lAc
Miim at i'nitt £ Ikscekal.
Iron and Wire
Fences and Gates
Railings, Window and Door
Guards, Trellises and Flower
Borders, Iron Clothes Posts, Door
Screen Guards and Paper Burn
ers.
Champion Iron and
Wire Works
J. J. Loddy, Prop.
ISOS Jackaon JA ckion 1590
ANCHORITE FENCE POSTS
Cooper brothers. Front row. at the
right of the picture are, left to right:
Special Attorney G. N. Murdock, Chi
cago; Assistant United States District
Attorney H. R. Trewln and United
State* District Attorney G. I*. Uin
vllle, both of Cedar Rapids. In the
second row, left to right, are: Reve
nue Agents >1. II. Sherlock of Omaha
and F. McCann of Kansas City, Mo.
At the table in the rear are Revenue
Agents C. F. Reilly of Omaha, I. *W.
Jones of Washington, A. J. Nelson of
dition to their fines. During the
trial the Jury was held incommuni
cado and under constant guard of
two United States deputy marshals.
Kvader* Pay Up.
Since the Indictments were returned
a large number of tax evaders In the
Omaha division of the revenue de
partment have voluntarily disclosed
and paid taxes of which the govern
ment had no previous knowledge.
One Instance is cited where a tax
evader, after reading of the progress
of the trial, hurtled to his bunk,
withdrew $8,000 wrapped it In a news
paper and rushed Into the collector's
Dubuque and Special Agent Partridge
of Washington. Court Reporters O. B.
Swislier, C. J. Hamilton anil R. C.
Turner are in the rear On the right
of the picture.
So. 4.
A. J. Nelson, internal revenue agent
of Duhuqur, who is known in
Dubuque as the "Nrniesia of the
Cooper brothers."
No. 5.
Charles F. Reilly, internal revenue
nt of Omaha, whose income tax
1 <*. He offered the money in pay.
ment of taxes he had withheld which
had not been discovered up to that
time by revenue officers. It is
estimated that taxes paid voluntarily
as a result of the trial total many
tlmis more than the cost of the trial.
I). M. Kelliher, leading counsel for
the Coopers, was formerly a solicitor
for the bureau of internal revenue
In Washington. Accountants for the
Coopers, the Murphy Clillin Holland
Company, all are former revenue serv
ice officials in the Omaha division.
More than 1.800 exhibits were In
troduced during the trial, and 120 wit
nesses were examined. Evidence gath
investigation aided materially in the
government’s victory.
No. 6.
More than tuo tons of evidence wete
obtained by (lie government for use
against the Coopers. Here is a picture
<;( some of the evidence, taken in the
court room of the Federal building in
lhihui|ue. I nited States Marshal
llavls, standing, and Deputy I nited
States Marshal tiilmore are also in
I lie picture.
ered by the government weighed ap
proximately two ton*, and over 800,
000 words of testimony were taken
by court reporters. Witnesses were
brought to the trial from 13 slates,
and truck loads of way bills from
railroad companies w« re hml.-q to
the federal court In Dubuque in the
government's efforts to aceoimt for
sales of merchandise not shown on
the Cooper books.
The entire revenue service is con
gratulating Agent In Charge I d ike,
ford of Omaha and th« off --is who
worked so skillfully under hi* direc
tion to unravel the plot .to defraud
and bring the plotters to justice.
Nicholas Oil Company to
Give Patrons Souvenirs
The Nicholas Oil corporation of
Omaha, will celebrate it* 11th anni
versary July .T Souvenirs will be
given patpm* of its 12 filling station*
on that day.
First filling station in Omaha, was
established by the company at Twen
ty-fourth and Hickory street* July 3.
1012. Later the company leased the
corner it now occupies at Seventeenth
teenth anti Jackson street*. It also
claims to have originated the drain
age pit service idea.
Officers are L. L. Murrell, presi
dent. Judge W. A. Kedick. vice pr**o
d*nt; Michael Shirley, tlii « « tor, and
Stockton Heath, manager and treas
urer.
Airplane “White Elephant”
on Storape Firin'* Hands
Omit, n Vnn and Storage company
hue an airplane It want* to got rid of
It is a .IN41).
The plane was stored with them by
the Curtis* company.
The Cordon rumptny, scrnrdlng to
a petition filed In district court to rc
cover money due them, ohnrgo.s tin
plane h in been stored since April 27.
11)20 and that It paid the freight and
Insurance on It.
__________
Hoc \\ nit Ads Tiring Hi suits
Slayer of Girl, I 1. Hears
Life Term Pronounced
James Corblno was sentenced to
life imprisonment by District Judge
«
(ioss y. et< rriay for th- sl.ij.pg ..f
Ann a tjreco, 14, at her home tie u g»»t
of April :<>
Corhino. who protested throughout
his trial that he was unable to speak
English, when asked whether he had
anything to say, declared. In perfect
English, that he did not shoot the
girl.
"Well, you are pretty lucky with
the sentence you got." the jtidt ail
Vis-d him.
He overruled a motion for new
trial. mad. by t'otbino’s attorneys. J
Society Hocks
to Horse Show and
Tennis Tourney
9
Olympia Lacks Brilliance of
Prewar Days—Holland’s
Queen Travels Incognito
—American Women's
Club Opened.
By Vnlveresl Service.
London, June 30.—Society flocked
to the horse show at Olympia and
to Wimbledon for the tennis matches
I this week. While the presence of the
j king and queen and the prince of
i Wales at Olympia gave impetus to
I the success of this gathering of so
! i lety many are of the opinion that
the show is not as brilliant as it
was before the war when Judge
Moore, the Vanderbilts and others
gave the functions a truly internation
al flavor.
Of course everybody went to Wim
I baton to see Suzanne Lenglen, Mrs.
Mallory, Little Rill Johnston and
the boy cyclone Richards. The meet
ing was the most successful in the
history of international lawn tennis.
Queen Wilhelniina in England. ^
One of the interesting events of
the week was the welcome given here
by King George and Queen Mary for
Queen Wilhelniina of the Netherlands,
who was traveling incognito with
Prince Henry as the Count and
Countess VanRuren. The royal visi
tors will spend five weeks as guests
of the famous DeKlemings, at Rydall
Hall and will then return to The
Hague to celebrate their silver wed
ding.
Several society wtimen have recent
ly been noticed ‘ with butterflies
painted on their arms.
Princess Mary has put Master
George Lascelles, who is now five
monthy old and a chubby, healthy
baby, into short clothes.
American Women's Club.
Tuesday afternoon occurred the
formal opening of the new home of
the American Women's Club at 46
Grosvenor street, formerly the resi
dence of Sir Edgar Speyer. Mrs.
Curtis Brown, the president, received
the guests.
The Spanish shawl craze is being
revived, and every one is wearing
white and scarlet over their gowns.
Irish Girls Not
Modest Charge
C
Tendency Blamed for
Loss of the Virtues for
Which Isle Is Famed.
Dublin, June 30.—There are not
likely to he many poem* written or
songs sung in the future about the
modesty arid purity of the Irish maid
ens unless the colleens mend their
ways, in the opinion of Rev. Dr.Hack
ett. Catholic bishop of Waterford. In
an address at Clonmel, Bishop Hack
ett asserted that the conduct of many
Irish young women had come to be,
one of the blackest blots upon the |
country's escutcheon.
“Many young girls,” the bishop
said, "seem to have lost all sense of
shame. . For them modesty has be
come a thing of the past."
The blame for this condition is
placed by the bishop upon the anti
government movement that hag so
upset the Ktnerald isle.
"If this unfortunate struggle con
tinues any longer.” Bishop Harkett
solid, "and if purity does not assert
Itself and religion does not step in
Ireland's plight will Indeed he sad.
t'p to now the purity of Irish maidens
has been a thing in nhich every
Irishman has gloried- The whole
continent has looked to Imlan^ as a
moral nation. I am sorry to say that
it Is not true today.
"I sincerely hope that my voice
mill t h the car-, of those young
women whose conduct is an outrage
on decency If these v».ung women
nr-* not made t*- realise them tmsitlon
Urn condition of Ireland will he the
Knickerbockers
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$5 OO khnki BrfethM $4 05
$<> 50 Tweed Knfcke-s $4
*12.30 Linen Kiticfccr ?ult» *9 75
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You will appreciate the Personal Service rendered by
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B. J. DE GROODT D. NORTHUP
Assistant General Freight Agent Commercial Agent
Omalian Succeeds Britton
as Electric Body Official
J. E. Davidson of the Nebraska
j Power company, received word yester*
day of the death of John Britton of
Han Francisco. Mr. Britton wa.< first
vice president of the National Kleo*
trie Ei«ht association, of which Mr.
Davidson was second vice president,
Mr. Davidson now becomes first vice
president.
j Sale of Trunks
Bags and Suit Cases
We are closing out about forty Belber Wardrobe'
Trunks at very low prices. Unquestionably this con
stitutes an excellent opportunity to purchase for your
vacation.
$44.00 full size Belber Ward
robe Trunk, equipped wyth
drawers and hanging section
,Tch.T",op:... .$33.50
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robe Trunk, equipped with
drawers and hanging section,
%■.$27.50
$30.00 steamer size Belber
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and hanging
$40.00 three-quarter size Bel
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hat box, laundry bag and hang
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open top.ipJU.UU
$44.00 full size Belber Trunk
with shoe pockets, hat box,
laundry bag and hanging sec
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top ..■. •
Steamer size Tray Trunks of \
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$87.00 full size Belber Ward
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for.
Phone Us Your Order for .
Victor Records
for- 4th of July
2432. Parade of the Woodtn Soldier*-—-Patrol. ? .7^
Walter B. Rogers and His Band.
Boy Scout* of America—Marrh.
Walter B. Rogers and His Band.
5055. America (My Country ’Tis of Theei 1.00
Collegiate Choir.
Dixie—
Criterion Male Quartet.
2007. American Fantajie—Pare I. .75
New York Police Band.
Americai Fantaiie-Part II.
New York Police Band.
2002. National Emblem March. .75 *~
Brunswick Military Band.
Jack Tar March.
Brunswick Military Band.
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1*0 YEARS
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