Lecture 3: Evolution and historical roots of OC

Italian Mafia
 Dominated literature, media, and entertainment
 Not the case historically
 Public perception: Italian American phenomena

Prohibition
 18th century: moderate drinking accepted
 19th century: alcohol abuse concerns
 1826: American Temperance society – ‘pledge of abstinence’
o Temperance movement began
o 1846: Maine outlawed alcohol
o Unsuccessful despite liquor laws
o Sales and use were still widespread
 National Prohibition Movement “Noble Experiment”
 Prohibitionists:
o Alcohol is a drug: destroyed lives, disrupts families
 Govt Job: prohibit alcohol sales
 Pressure on politicians
 Sentiment of Prohibition movement
o Important to understanding OC
 Symbolic Crusade
 Gusfield 1963
 Prohibition movements
o Less to do with alcohol
o Disgust of immigrants
 “tired and poor” – myth
 Immgrants subject to discrimination
o Access to jobs
o Education
o Medical care
 Prohibition = reaction to immigration
 18th amendment – January 2019
 Volstead Act – October 2019: enforcement mechanism
 Law
o Enforced sporadically
o Public opposition
18th amendment
 Section 1
 Section 2
 Section 3
 Result
o Bootlegging
o Smuggling
o Speakeasies (during prohibition: Chicago had 10 000 speakeasies)
 Opponents
o Law ineffective
o Personal choice
o Massive campaign
o 1933 – 21st amendment

21st amendment
 Section 1
 Section 2
 Section 3

Prohibition cont
 Criminal ‘goldmine’
 Tainted politics
 Corrupted police officers
 Despite law: whoever wanted liquor could get it
 Criminal entrepreneurs
 Massive infrastructure to handle alcohol demand
 Factories
 Transportation system
 Import system
 Market demand: complex organization, new electronic technology

Chicago Mob
 Prohibition and political machine
 Turn of the century: corruption common daily business
 Al Capone – reputation of Chicago
o 1899 Brooklyn NY
o Street gang member – Five pointers
 o ‘tough’ willing to follow orders
o Frankie Yale (mentor) bartender
o Suspected of murder
o 2 options: leave or risk being murdered
o 1920: moved to Chicago
o Torrio – mentor to Capone
o Crime boss – ‘Big Jim’ colosimo
 Prostitute operator
 Political power (chicagos first ward)
 Aware of upcoming prohibition - not interested
 Profits too lucrative – shot to death in office
 Torrio (known for intellect) takes over Colosimo’s rackets
 Capone helps in expansion
 Torrio would recognize possibilities prohibition would bring
 Buys breweries – preparation for demand
 Convinces other to stop fighting for turf
 Torrio – alliances and future
 Capone – day to day operations
 Reputation: ‘benevolent crime king’ provides liquor
 O’banion (northside): hijacks torrio and capones liquor
 Partnerships in brewery
 Obanion sells out prior to raid
o Torrio arrested and fined
o Capone and obanion tensions
o Obanion shot in flower shop
 Northside: taken over by Hymie Weiss
o Weiss retaliates over Obanions murder: ambush Capone on the street
o Capone is unharmed
o Torrio – shot 5 times prior to serving prison sentence
 Capone: new crime boss
 Feud: Capone v Weiss
 Weiss: shot going to car

St valentine’s day massacre

 Capone opposition: Charles “Bug” moran
 Massacred: murdered by Capone
 Hitmen: dressed as police officers
 Seven murdered
Chicago Mob cont
 Business and organized crime leaders need to do something about Capone
 1929: group of citizens pay visit to President Hoover asking for 2 things
o Repeal prohibition
o Help in controlling Capone
 Agent Elliot Ness form Treasury Department assigned to Chicago police department
o Police dept: widespread corruption
o Special squad: mob tried to bribe
 Could not gather enough evidence on Capone
o Idea: indicted for tax evasion
o 11 year prison sentence
o Released in 1939
o Died age 48

New York Mob

 2 factions
o Joe Masseria – Salvatore Maranzano – conflict -1930
o Charlie “Lucky” Luciano – rises to dominance
o Long term alliance
 “new order”
o Luciano: all crime factions welcome
o No bosses: negotiation and conciliation
 1934: post prohibition
 Operatives: looking for ways to profit
 Illegal liquor rackets – defunct
 Luciano opportunist
o New racket is prostitution
o Takes over independent brothels
o Coerced into splitting profits
 Outrage from public re: ON in NY
 Demand action from public officials
 Prosecutor Thomas Dewey: OC task force
o ‘one by one’
o Luciano prosecuted sentenced
New York – Las Vegas Connection
 Development of gambling
o Evolution of OC in NY
o Major player: Benjamin “Bugsy” Siegal
o Brooklyn NY – middle class
o Moved to Manhattan – met Meyer Lansky (stolen car business)
 Siegel and Lansky
o Getting into trouble
o Character witnesses for each other
 Siegel moves to Hollywood from NY
o Movie star
o Muscled in on local rackets
o Other businesses: screen extras guild, racing, gambling casino
 1939: murdering of Hank Greenberg
o Arrested in 1940
o Siegel no longer welcome in Hollywood
o Murder charges dropped: why?
o Murder of witness in NY
o Collusion with DA
o Spread money – LA and NY
 Siegel: ‘visionary’
o Combined luxury hotel/gambling resort in ‘middle of the desert’
o The flamingo
 Cost 1 mil
 Funding?
 December 1946 casino portion opened
o Rumours games were fixed
o January : closed until hotel completed
o NY partners ‘need new management’
o June 1947 siegel assassinated