He is Palmer Webber, who was staff director in 1943 for Sen. Pepper (D)

of Florida, and chief economic adviser in 1944 to Sen. Kilgore (D) of

West Virginia. Webber bore down on his Senate contacts from a rent-free

office in the Library of Congress. How he got it free nobody knows.

For two years Webber held a job as “legislative correspondent” on

Capitol Hill for the Federation for World Government. Records in the

office of the secretary of the Senate show Webber was not registered as

a lobbyist for the federation and the organization is not registered

to conduct a lobby. In addition to his arduous efforts to defeat the

anti-Communist measure and his work for the federation, Webber was a

demon, worked for votes for passage of the fair employment practices

bill.

Webber was transferred by the World Government Federation from

Washington to New York “to do research.” The shift was for “political

reasons.”

He is an errand boy for the Lawyers Guild, which the House Un-American

Activities Committee cited as a “front” organization. It has also

been active in another “cause” sponsored by Webber--the drive for an

investigation of the F.B.I.

In 1947, Webber, a Ph.D., conducted a class in political philosophy

at the King Smith school, where the democratic form of government was

smeared to GI and other students.

A reporter attended Webber’s class on May 27, 1947, when Senator

Pepper was a guest. A woman student referred to J. Edgar Hoover as the

American Gestapo head and declared the Catholic church was leading a

crusade for war.

A woman in the audience, a secretary to a Republican Senator from the

Midwest, jumped up and shouted, “Thank God for the F.B.I.”

Webber was arrested in Charlottesville, Va., for distributing Communist

Party literature. Police records show he paid a forfeit rather than

fight the case.

He was at one time a research director for the CIO Political Action

Committee in Washington and in 1948 was a paid director in charge of

activities of the leftist Progressive party in 11 southern states.

Another who lobbies against anti-Communist bills, and is openly so

registered, is former Democratic Congressman Jerry J. O’Connell, of

Montana.

Utilizing his privileges of the floor, as an ex-Representative,

O’Connell strides into the House and Senate while they are in session,

and delivers advice, orders and inspiration to left-wing Congressmen,

and threats to others.

When the Senate was debating the Communist control bill in an all night

session last September, O’Connell took up a station at the Senate door

with a reporter from the Daily Worker, and without any pretense of

disguise, dictated the unsuccessful opposition’s floor strategy.

But listen to the hue and cry when a manufacturer’s lobbyist buys a

Coca Cola for a Congressman.

Being a government lobbyist can produce desirable advantages,

especially for a Marshall Plan press agent.

A survey reveals that the Economic Cooperation Administration

information office has been giving several of its employes free

visits to Europe and the Middle East. Robert Mullen, director of ECA

information, toured Europe. He mapped a $7,500 ’round-the-world trip,

but postponed a visit to the Orient when the bullets began to fly.

Mullen sent an heiress to the J. P. Morgan banking fortune to London

for a convention of clubwomen--to get new propaganda material on the

Marshall plan to influence American clubwomen. He sent an inexperienced

youth, hired as a “picture expert,” to Paris and London, to see the

sights and get new pictures for propaganda purposes here.

Though ECA has 73 American press employes in Paris alone, and 56 in

16 other Marshall Plan missions in Europe, plus 222 Europeans on

these staffs, ECA sent a former woman reporter to Paris to get “human

interest” stories for a clubwoman propaganda pamphlet.

The ECA press information office in Paris has a chief who gets about

$20,000 a year in salary and expense money, has highly paid former

reporters on his staff, but the ECA here sent a man from Washington to

show a group of editors about Europe. Several others went to Europe on

similar assignments.

Mullen has 48 on his Washington staff, drawing a total of $280,000

a year. Among these are the Morgan heiress, an ex-bullfighter, the

daughter of a symphony conductor and a score of graduates from defunct

war agencies. He separated a noted Negro Air Force pilot, who achieved

some success as an author, from his Washington staff and dispatched him

to Formosa at $15,000 a year to direct Marshall plan press information

there.

The American press agents for ECA will draw $673,000 in salaries this

year.

Congress gets around sporadically to investigating the lobbying “evil.”

The latest “crusade” was conducted by leftish Congressman Frank

Buchanan, who muddled the issue so much, no one knows what happened,

except that the National Association of Manufacturers emerged the

villain. Congressmen don’t hanker to expose lobbies, even if they’re on

the other side. When the investigation was first voted by the House,

Buchanan wanted to give the appropriation back, an unprecedented

departure where committee chairmen always yell for more. Buchanan tried

to handcuff the lawyers engaged to conduct the investigation, though

both were good Democrats and good Fair Dealers. But they were also

honest. Lou Little, of Pittsburgh, a co-counsel, quit broken-hearted.

Counsel Benedict Fitzgerald, of Greenfield, Mass., a whiz of a prober,

was not even allowed to write the report. Buchanan refused to swear

in some witnesses; if they lied it would not constitute perjury. When

counsel called attention to that, he angrily shut them up.

The real brains of the investigation into lobbying was Lucien Hilmer,

committee staff director. He is regarded as a left-wing lawyer. When

George Shaw Wheeler was fired from the government for consorting with

Communists, Hilmer appeared as his lawyer and beat the case. Two years

later, as an economist with the U. S. Army in Czechoslovakia, Wheeler

vindicated the Civil Service Commission when he moved in on Berlin Red

headquarters. He announced he was a Communist and always had been one.

Hilmer shares a law office with John F. Davis, who represented Alger

Hiss before the House Un-American Activities Committee. Hilmer had

worked under Max Lowenthal on the old Wheeler Committee.

And did we remember to tell you that the Kansas City Chamber of

Commerce has an office on 16th St., across the road from the Russian

Embassy? Both pressure groups have displayed amazing influence in

Washington.

_INSIDE STUFF_: The law requiring lobbyists to register is used as a

racket by some. They advertise in trade papers: “Lobbyist, registered

with the Congress of the United States,” then sell prospective chumps

the idea they are “licensed” to lobby. Anybody may file his name and

set up his own “cause.”

24. RACKETS BY REMOTE CONTROL

Our newspaper confreres, in the main, were willing to be hospitable and

helpful when we galloped in and made no secret of our aims. We don’t

expect them to write our books. But they often give us tips, which

saves work.

The first question we asked was, “Who is the Washington Mafia boss?”

The invariable answer was that the local underworld was unaffiliated

with the national setup, free and independent, self-contained.

All our experience made us reject that picture. We had traced and

charted organized crime through the gang wars of Prohibition to this

day. We had charged and it was being substantiated that no city of

importance was left out of the clutches of the Mafia, with its brains

in New York and its powerhouse in Chicago. It was inconceivable that

a rich, large center on the Atlantic seaboard, almost a suburb of

Manhattan, could be bypassed. So we found out for ourselves. This is

the situation in Washington:

The National Syndicate, for reasons of prudence, has avoided first-hand

operations in the District. You find few important Sicilian names in

the police files. Vice, crime, gambling, narcotics and, to a smaller

extent, contraband liquor, are farmed out by franchise to a cohesive

local mob which deals with and pays tribute to national headquarters.

Despite tremendous influence, legal advice and guidance and the

constitutional immunity against self-incrimination, the Mafia has

an almost superstitious fear of Congressional committees. A city

administration can be bought or scared or rigged. But nobody can

capture 96 Senators and 435 Representatives. And any one of these is

one of the immediate bosses of Washington; and any one of these can

arise any day and demand a probe of anything. On the rare occasions

when important racketeers were dragged to Washington on subpena, with

all the assurances they got from many members beholden to them and

the shocking obeisance paid them openly, they wet their pants in the

witness chair.

Yet, these greedy gluttons can’t find it in their miserly souls to

declare it an open town, any more than they can force themselves to

pay honest income taxes, though they awaken in their silk pajamas

screaming, from nightmare dreams about Al Capone and Alcatraz.

District of Columbia is and was dominated by Emmitt Warring, Gary

Quinn, Sam Beard, the Sussman brothers and Attilio Acalotti. The chief

operation of these men is gambling, which will be traced in more detail

later. They staked out locations in Washington, worked together in

harmony, well aware that the capital would not go for Chicago-style

assassinations.

But the national Syndicate did not hesitate to work openly in the

adjoining Maryland suburbs, where the late Jimmy La Fontaine, who died

in bed at the age of 81 in 1949, was the local front man. Fontaine’s

rococo gambling casino, across the street from the District line, was

as far as the Mafia cared to go openly. His chief lieutenants were

Snags Lewis, Pete Gianaris and Mike Meyers. Snags has pleaded guilty to

a mild rap on a bargain which will take the heat off others.

We have described the dope setup in the District, where local

wholesalers send to New York for supplies, so that the Mafia does

not have to deliver them in the capital. By a similar procedure,

the gamblers and other racketeers procure their wire service from

representatives of the big mob, across the border in Maryland. Snags

Lewis was the local wire service man.

When it came to such things as numbers, whoring, illicit liquor and

after-hour spots in the District, the local boys tried to hold on to as

much as they could. They didn’t want to divvy up with the Syndicate.

The big mob didn’t like that.

When the Mafia moves in, it gears its method to local situations. For

instance, Dallas, one of the last hold-outs, is being taken over at

this writing by strong-arm work and gunplay.

But when the beach-front bookmaking syndicate in Miami held out, it

was cut off from its wire service, then local cops did the gangsters’

work by raiding the recalcitrants, to make way for the Syndicate’s own

operators.

It was clear to Frank Costello in New York and Charlie Fischetti in

Chicago, the operating heads of the underworld, that gat-work would not

be tolerated in Washington. They knew the Metropolitan Police couldn’t

be counted on to cooperate, with J. Edgar Hoover on the grounds.

Few understand why the F.B.I. has not acted against the Mafia. Its

jurisdiction is circumscribed by Congress, and the black-handers have

been smart enough to keep out of fields in which Hoover may act.

The outside mobsters adopted a third procedure to tighten their hold on

the local underworld, one that had worked with great success in other

towns. It came through with flying colors in Washington. Last year

there was an epidemic of robberies of local underworld figures, and not

by accident or coincidence.

One victim was Emmitt Warring. Three men forced their way into his

home, at 3900 Macomb Street, and robbed it at gun-point. Insiders

say the amount of cash lifted from Warring’s safe was about $100,000.

Warring told newspapermen it was only $20,000. He refused to cooperate

with the police and would not admit or deny that the holdup had taken

place. In the same week, the same thugs held up Johnny Williams, a

numbers racket boss. Robert “Ryebread” Schulman and Theodore “Little

Joe” Scheve also were held up. Williams’ father-in-law is Dick Austin,

a numbers king in Atlantic City and Washington.

Chief of Police Barrett said, “I am alarmed by the crimes. We can’t

have this sort of thing going on here. Pretty soon somebody’s going to

get shot.” That was Scheve. But nobody got arrested. Then Washington

racketeers saw a great light. They made peace with the Big Mob, which

established its regency over the District, leaving the former operators

in as partners with nominal control.

George P. Harding, victim of the recent slaying in the Hideaway Club,

engineered the Warring robbery for the Mafia. Harding was born in Italy

and had a long and bloody career as a gunman and killer, before being

slain by his friend and associate, Joseph Nesline.

Nesline, who admitted the shooting, is a four-time loser. He told

police it was either “Harding or me.” His story was Harding had accused

him of running out with his share of the gravy in a gangster-operated

oil well deal in Texas, where Frank Costello and his boys are buying

heavily into leases and royalties. The dead man had been sitting with

George A. Clainos, white-slaver and member of the local Syndicate, who

passed him a gun.

The actual cause of the killing, which we are telling you confidential,

is that it was ordered from Mafia headquarters in Brooklyn, because

Harding, who knew too much, was an intemperate drinker and was talking

too much.

Harding had been warned “to be good or else” several months ago,

through word transmitted by Tony Ricci, alias Tony Goebels, who is the

message-center for the Unione Siciliano.

The formula of permitting local operators to retain management was

followed last year when the mob moved into Tampa and Jacksonville,

Florida, and was used also with much success in Newark, New Jersey,

where the non-Italian mob of Abner “Longy” Zwillman was absorbed into

the Mafia. The Cleveland branch, run chiefly by Jews and Irish, was

given the same modus operandi and absorbed.

The chain of command and remittance from the District to top

headquarters is through Prince Georges County, Maryland, where Gianaris

handles the numbers intake from the District and Lewis superintends

payments for horse wire service--which is utilized also as a clearing

house to transmit receipts from all other illegal activities, entered

on the books as payments for the services or as losses on bets.

La Fontaine’s organization is kept together by Lewis and Meyers.

Charlie Ford, Washington lawyer, who appears frequently in this book as

counsel for gamblers, vice-hucksters and bottle-clubs, is the trustee

of La Fontaine’s fabulous estate. In this connection some complicated

bookkeeping is required.

It develops La Fontaine was only a front man. Eighty percent of his

holdings belonged to the Big Mob. His death brought intricate mixups,

and what was his and what was the Mob’s had not been identified in full

detail. The situation is similar to that which followed the slaying

of Edward J. O’Hare, Chicago mobster, who operated race tracks for

the Capone syndicate. The stock of Sportsman’s Park, Chicago, and the

Miami Beach Kennel Club was in his name. He left it to his heirs and

associates. It took years for the accounts to be straightened out, and

when they were, some money was paid over in the form of a “loan” to

Paul “The Waiter” Ricca, a close associate of the late Capone, who is

one of the ruling heads of the secret Grand Council of the Mafia.

The La Fontaine payoff to the top was made through Nig Rosen of

Philadelphia to Meyer Lansky of New York. Lansky is a tributary of

Frank Costello and a gambling partner of Joe Adonis. Nig Rosen is a

friend of Washington Police Chief Barrett.

La Fontaine was one of the most colorful men Washington ever saw. His

legendary career as a gentleman gambler spanned half a century. This

last of the gas-lit era gamblers was one of five children of a poultry

dealer. He was apprenticed to his father’s trade and might have carved

for himself a similar career, except for a fatal flaw in his make-up:

he could not bear to kill a chicken, nor could he stand the thought

of others killing chickens he had raised. He hid his favorites in his

father’s attic.

A three-cent strike Jimmy made on the old St. Louis lottery netted

him $12. With this he set up shop across the Potomac in Virginia. He

then went to work for the Heath brothers, old-time gambling combine. He

soon had his own card table and he prospered. Subsequently he opened

the Mohican Club, near Glen Echo, Maryland. Expanding, he purchased a

large tract in Prince Georges County and established “Jimmy’s Place.”

Around it he built a high green fence and within it men won and lost

fortunes. Women never got past the door and no man who couldn’t afford

to lose was ever admitted again. It was staffed by more than a hundred

carefully chosen attendants, all covered by social security. They made

regular contributions to a retirement fund.

The house limit was $200 on craps, $500 a card on blackjack, and $10 on

numbers, with no-limit games in private rooms for certain customers who

could stand a tough tap. “Jimmy’s” catered to as many as 2,000 gamblers

a night.

Oddly, La Fontaine never got out of the poultry business. His passion

was cock-fighting and he maintained a stable of 100 birds. Seeing

them killed in action did not affront him. He also made horse book

and traveled from track to track. La Fontaine bankrolled Tex Rickard,

the fabulous fight promoter, in his early days. After Rickard’s death

he formed a silent partnership with Herman Taylor, Philadelphia fight

promoter.

Jimmy served a jail term for income tax evasion and paid a fine of more

than $200,000. The Big Mob had long cast covetous eyes on La Fontaine,

who by now not only had his own profitable gambling enterprise on which

he himself admitted paying off $100,000 a year for local protection,

but he controlled also the entire underworld in the lush Maryland

counties adjoining the District. About 20 years ago, emissaries from

Philadelphia came down to muscle him out. One representative of Nig

Rosen, a gunman named Milsie Henry, was mysteriously murdered, for

which La Fontaine was loudly but not officially mentioned. The case

is still unsolved. Shortly thereafter, La Fontaine was kidnaped by

hoodlums from New York and Philadelphia. Before he was returned his

family had to come up with $40,000 “expense money.” And the Mafia was

declared in on his enterprises.

Most naïve Washingtonians believe the appointment of attorney Charlie

Ford as the trustee of his estate was a logical sequence, as Ford is

a gamblers’ lawyer. He testified before a house committee that he

represented many gamblers, some of whom were such powers that they

were unknown to the police or public as gamblers. He refused to divulge

their identities. One is a liquor dealer and another, a local jeweler.

Ford has legal contacts with the topmost figures of the Mafia. When the

wife of Charlie Fischetti, one of the most powerful men in the national

underworld, the most powerful in Chicago, was subpoenaed before the

Kefauver Committee, Ford flew to Chicago to represent her, though the

Fischetti-Guzik gang has staffs of legal sharks who specialize in

outwitting the authorities.

Quite often there is legal jockeying following the death of important

gangsters like La Fontaine.

After Bugsy Siegel was slain in Beverly Hills, Morris Rosen showed up

from New York at Siegel’s ornate Flamingo and took over all of the

murdered man’s assets before his body was cold. They had never belonged

to him at all. They were Syndicate property. So was 80 per cent of La

Fontaine’s.

25. WHO’S WHO IN MOBOCRACY

For two books and for the hundreds of newspaper stories we have done on

American gangsters and their maze of intertwining organization we got

enough to be publicly proclaimed America’s top experts in the field.

We have been offered lectures and speaking engagements before bodies

of bankers, merchants, criminologists, police conventions and on radio

programs. But we have saved some new names and some newly-discovered

secrets for this book, because a “confidential” without that factor

would be regarded as a gold brick; and because our publisher knows us

and trusts us and hasn’t the rabbit in him that the owners of other

media display, when they say:

“But you just can’t publish that kind of stuff. You’ll get us all

killed!”

One magazine which paid for the rights to do a digest of _Chicago

Confidential_ weakened and, instead, did a piece speculating on our

chances of surviving our tenure on the bestseller lists!

We have our own ways of getting this material, which so many think is

so dangerous. It comes from many sources, all confidential. Some of it

is right from the racketeers, themselves, for they have vendettas and

jealousies and hatreds on which they don’t dare to act in the open. The

widow of a murdered hoodlum drove hundreds of miles and met us in a car

in Central Park and gave us the tale of who rubbed him out and why.

This was a woman who had told the cops and the prosecutors that she

knew nothing, had no idea how her husband made a living, had never met

any one who was even “shady.”

Here and there a person who has been shaken down or shaken out, and

thus knows a small angle which may be valuable as a tip-off on one or

two people and authentic tactics gets to us and spills.

We don’t believe all we hear. But facts mesh up and patterns form and

truths evolve.

We have sketched for you the process whereby the pennies, dimes and

dollars of the numbers-players, horse-bettors, hookers and junkies

are harvested in Washington and funneled to the satraps who live in

penthouses and mansions in New York, Chicago, Beverly Hills and Rome.

They are big industry, our biggest. And while the principals hide in

their drawing-rooms even if they pass through Washington, to or from

Florida, they must maintain here high-powered lawyers, tax experts

who study and report every decision of the Treasury, lobbyists, press

agents and spies. Many of the vast legal businesses into which they

channel their cash have branch stores and offices here. The Syndicate

is an international conspiracy, as potent as that other international

conspiracy, Communism, and as dirty and dangerous, with its great

wealth and the same policy--to conquer everything and take over

everything, with no scruples as to how.

This gigantic money trust has assets of billions, exceeding the

combined wealth of Morgan, Rockefeller and all the Wall Street

freebooters of old.

It owns, through legitimate sources of trade, incalculable commercial,

residential, hotel and investment real estate, surpassing the holdings

of insurance companies. Through its purchase of stocks and bonds

it controls some and is attempting to control other transportation

companies, as well as railroads, hotel chains, distilleries and

breweries, department stores and chain stores, clothing and dress

manufacturers, steel and iron works, franchised automobile

distributors, trans-Atlantic steamship lines, a movie producer, a

radio chain, a big-league ball team, phonograph recording companies,

insurance corporations, banks, theatres, night clubs, laundries,

oil wells; it has been buying into even newspapers. This is only a

condensed catalog of its dishonest interests in once-honest enterprises.

A thief is always a thief. These modern pirates could not go straight.

As soon as they dip their sticky hands into something legitimate, it

goes crooked.

One of their favorite tactics is to buy in the open market enough stock

of a company, to create a nuisance value. They organize a minority

stockholders’ committee and dig up proxies. They have no real intention

of trying to get control, but some time before the stockholders’

meeting, they approach the management and offer to sell at a premium,

usually three or four times above the market listing. This is cold

blackmail.

Washington Confidential · 第 16 / 30 段