Left-wing Democratic Senator Hubert Humphrey, of Minnesota, is a pal

of ex-convict Charles Ward, millionaire calendar printer. Ward has

many ties with the underworld all over the country, and was one of

the financial backers of Anna Roosevelt’s attempt to start a daily

newspaper in Phoenix, Arizona. This was once he was outsmarted in

a money deal. As is not unknown in the Roosevelt tradition, he got

one cent on the dollar back. Bill O’Dwyer said he found a direct tie

between Ward and Brooklyn’s Murder, Inc.

Under such auspices, the underworld is establishing a firm grip on

Minnesota. Its attempt to take over the Minneapolis and St. Paul

traction systems is a part of the general picture across the land

and was exposed by Lait last summer in his _Daily Mirror_ column. It

resulted in the indictment of one of the mobsters, Kid Cann, so called

because of his many incarcerations.

The New Dealers have been kind to the underworld ever since their

victorious election in 1932, after Costello and Jimmy Hines, with

Ed Kelly, had successfully managed the convention fight in Chicago.

While Frank Murphy was Attorney-General he saw to it that prosecuting

attorneys laid off the boys. Internal Revenue agents prepared a tax

case against Costello and Frank Erickson, but the U.S. Attorney was

ordered to pigeonhole it.

Following Frank Erickson’s conviction in New York on gambling charges,

District Attorney’s investigators seized his books and papers. Among

them was a memo reading, “Phone Daddy Long Legs.”

The sleuths jumped on this. They figured it was a code or nickname for

one of the mob aces. That is one of the toughest problems encountered

by racket-busters, i.e., breaking down the aliases used by the kings of

the underworld on their books and in their records.

The gumshoes rushed over to the Island and interviewed Erickson in his

cell.

“Who is Daddy Long Legs?” they asked. “And what did you want to call

him for?”

Erickson laughed uproariously. “Why shouldn’t I phone him?” he

inquired. “After all, I’m related to him by marriage and he’s the Vice

President.”

After the investigators had recovered from their shocks, this is what

Erickson told them:

“An in-law of mine is an in-law of Barkley’s. Barkley visited me in my

Long Island home. My grand-kids are crazy about him. They nicknamed him

‘Daddy Long Legs.’”

The story of the Binaggio killing in Kansas City, anticipated in

_Chicago Confidential_, is recent, but the full background of the case

has never been aired before.

President Truman is and was a loyal member of his county Democratic

organization. And as such--a party man who never split his ticket--he

was forced to go along, though unwillingly, when the Chicago hoodlums

put Binaggio in as the leader.

When the President first went into politics, the Mafia was just one of

the mobs. It had not organized the country. In the 1920s, most of the

big city machines were owned by Irish bosses, who were tied up with the

local Irish underworld gangs. Each city was independent of all other

cities.

On the surface, the conviction of Tom Pendergast by U.S. Attorney

Maurice Milligan was a smashing victory for law and order. But it was,

at the same time, a greater victory for the Capone and Costello mob.

There are high government cops--not friends of the administration,

either--who have the wild idea that the only effect of Pendergast’s

conviction was to permit Charley Fischetti’s ambassador to Kansas

City, Tony Gizzo, to put in his own man, Binaggio, as county leader.

Milligan’s brother Tuck was counsel for Joe de Luca, a Mafia boss and

convicted dope smuggler, during and after his brother’s term as United

States attorney. Milligan prosecuted few Sicilian hoodlums. T-men

demanded 20 years for De Luca. Milligan’s office asked for only 3 for

his brother’s client; he was sprung shortly thereafter and the stool

pigeon who convicted him was murdered. We looked up the official record

and that is so.

As new Democratic leader of the President’s home county, Binaggio had

great influence. Naturally, the President wanted to carry his own state

in local and federal elections, so he had to work through his home

organization. The presence in it of people like Binaggio and Gizzo may

have turned his stomach, but that was politics.

We have explained that the Big Mob does not operate directly in

Washington on the street and sewer levels, such enterprises being

franchised out to locals. The Syndicate does do business in the

District in connection with its legitimate affairs and some of

its larger sub-rosa undertakings. In the latter category are

black-marketing, the sale and resale of government surplus, padding

of war contracts, etc. The boys had an office in the Thomas Circle

Building during World War II, in which they dished out war contracts.

One day a man was killed there, but so great was their influence that

no record was made on the police blotter. The newspapers still know

nothing about it.

A couple of hotels in Washington are owned by interests known to be

backed by underworld coin. Many chain stores owned by mob money have

branches there. Money of “Lepke” Buchalter, executed head of Murder,

Inc., is in Jarwood’s men’s clothing store, across the street from the

Department of Justice. The history of this chain makes a human interest

story.

When Lepke surrendered, to be turned over to J. Edgar Hoover, he

understood the boys put in a “fix” so he would be tried on federal

charges and not turned over to Brooklyn’s crusading District Attorney,

Bill O’Dwyer, on the Murder, Inc., rap, which meant the chair in Sing

Sing.

But Hoover would have nothing to do with such a deal, and gave him up

to New York State. Lepke was convicted of first-degree murder. He knew

he had been railroaded by the Mafia, which had wanted to get rid of

its Jewish partner. He threatened to blow the whistle, and was promised

leniency if he would talk. His wife, an attractive brunette, went to

see him in his cell and told him her life had been threatened, she

would be croaked if he spilled. That was not so. Lepke loved her, so he

went to the hot seat with his lips sealed to protect her.

Most of his illegal profits had been stashed away in secret safe

deposit vaults. He told her where they were. While Lepke was in

the death-chamber, his wife was often seen with Arthur Jawitz, a

slick-looking young guy, who had attracted the attention of the Feds

when they were looking for Lepke, whose bed he was keeping warm.

Shortly after Lepke’s electrocution, his widow married the black-haired

young man, and set him up in the men’s clothing business. They changed

their name to Jarwood. The underworld says Lepke left her $20,000,000

in U.S. currency. A former wife of Jawitz showed up, charged he had

married Betty Buchalter bigamously. She said Betty was “keeping” Jawitz

while her gangster husband was still alive.

After the Kefauver Committee quizzed Lou Wolfson, head of the Capital

Transit Company, which owns the street-cars and buses in Washington,

seeking gangster-ties, it went no further. There was no evidence.

Wolfson, who lives in Jacksonville, Florida, says he is a legitimate

businessman. We have no knowledge to the contrary. But it was developed

under oath at a Senatorial hearing that Wolfson and one William B.

Johnston had, between them, raised a fund of half-a-million dollars for

the campaign of Florida’s governor, Fuller Warren. Wolfson and Johnston

each put $154,000 into this private, special campaign kitty, and were

intimately associated during the campaign. Johnston is president

of Sportsman’s Park racetrack in Chicago, and several dog-tracks

in Florida, which were owned by the late Al Capone. Johnston makes

frequent payments to Capone associates as “loans.” He admitted he had

been associated with mob-owned enterprises.

Another witness, Leo J. Carroll, testified that it was general

knowledge in 1948, that with the election of Governor Warren, one-third

of whose campaign Wolfson financed, “the Mob would take over Florida.”

It did.

A few months after Wolfson secured control of the Washington transit

system, he was permitted to raise the fare to 15 cents a ride, on the

plea of extreme poverty. Right after that, the company doubled its

quarterly dividends from 50 cents to $1 a share. Company stock scored

a sensational advance, reaching $39. When Wolfson landed control he

bought 109,000 shares at $20.

Wolfson’s campaign to buy the local transit system was authorized by

the ICC and the Securities Exchange after an adverse recommendation

of the examiner and over opposition of minority stockholders. In less

than ten months, the Wolfson group succeeded in dominating the board of

directors and placing its own men in strategic executive spots, one of

whom is Frank E. Weakly, president of the Wardman Park Hotel.

Now the SEC has granted Wolfson permission to sell some of his stock

at the inflated price, which gives him the company and his money back.

At this writing, he is negotiating to buy the Washington Redskins from

George Marshall.

You can feel the presence of the mob in Washington. You can see

evidence in many directions that it is there. John L. Laskey,

immediate past president of the District Bar Association, resigned

the chairmanship of its law enforcement committee because he

had represented three witnesses called before the Senate Crime

Investigating Committee in connection with Florida gambling. He was a

former U.S. attorney.

When Frank Costello testified briefly last year before the Senate

Interstate Commerce Committee investigating the transportation of

slot-machines across state lines, the photo of a Senate attache calling

a cab for him while Capitol policemen pushed nosy spectators away,

was widely published. But what hasn’t been printed is that a table

was reserved for him in advance in the Senators’ private dining-room

in the Capitol, and while the great Costello dined with his staff of

lawyers, a couple of U.S. Senators humbly waited for seats. The Senate

dining-room is operated on a concession basis by the son-in-law of a

Chicago vending-machine manufacturer.

It could be some of the Senators are on Costello’s payroll. The law

firms of at least 40 Senators and Congressmen regularly represent the

wire service and local gamblers in their home towns.

Now let’s gander the Kefauver Committee.

26. TERROR FROM TENNESSEE

The House and the Senate have unlimited power and initiative in one

function only--they can investigate anything.

No President can veto a resolution for an investigation or by law curb

its activities or its scope. Theoretically, the purpose is to acquire

facts on which to base future legislation. Some of the mightiest of

our historical moves have sprung from such inquiries. Giants have

risen in the course of them. Harry Truman would probably have remained

an obscure little nonentity were it not that he became chairman of a

comparatively inconsequential Senate body which got to asking questions.

One of the surest ways to grab public attention is for a legislator to

propose a resolution for a special investigation. If it passes it is

not submitted to a standing committee, but its author is by established

custom chosen as its chairman.

This is the story of a special Senatorial investigating committee.

In many ways it is typical of such things under the Fair Deal, where

politics can strangle this last independent prerogative of Congress.

The central character of this tale is Estes Kefauver, who sprung a

Senate motion to investigate crime. Your authors have a personal

property right in this venture. For Senator Kefauver had read _Chicago

Confidential_, and what he found there made his hair stand on end. This

is no conjecture. His resolution was prompted by what we had discovered

and published.

He was sincere, impulsive and ambitious--if you can call a yen to be

Vice-President an ambition. He is our friend, and as such we wish

him well and, as Americans who know a little more than most of their

fellow-citizens about what is going on, we cheered the possibilities of

an untrammeled turning of the turf that would show up officially any

important portion of the staggering facts for which we risked our lives.

Kefauver began bravely. He realized that he had lightning bolts in both

hands; that he not only could become one of the foremost men of his

time, but that he could accomplish priceless service to his country.

With the infinite power that was his, he could expose and perhaps

destroy the Syndicate and the Mafia which rules it, and save us from

the creeping, leaping conspiracy of criminals which already in many

elements of our life has superseded constituted government.

But he wants to be Vice-President.

At this writing, he is 47; Barkley is 73. Political wisdom would

dictate that the second man on the next national Democratic ticket

should come from a border state. Kefauver is from Tennessee. He became

a headliner when he licked boss Ed Crump. He is of Dutch-American stock

and a Protestant.

He has four years more on his Senate term and could be re-elected. But

for a national nomination one needs a majority of the delegates at a

convention. Delegates are party men, designated by the party.

He had no more than taken his first bold steps when the party went to

work on him. No Democrat can fight the Mafia and get anything from most

Democrats except obstruction. They are so intimately and intricately

interwoven with the underworld plunderworld through all political

strata that they must protect it.

Kefauver was too naive to foresee this. He comes from one of the few

states where there is no gangsterism except in picayune city and county

affairs, and in those the Republicans share the chicken-feed rewards.

Kefauver campaigned in a coonskin cap and unhorsed the Memphis machine,

which had no great state-wide strength from within and no tie-ups to

bring it help from without. But the explosion that followed when his

bill passed rocked the whole national party.

Kefauver, in his innocence, had read our book of disclosures, but

like thousands of others, he failed to grasp the significance of the

political forces which have become integrated with the system, without

which it could not have spread, and to which it has contributed and

does contribute incalculable money, leadership and votes. It was

inconceivable to him that mayors and governors he knew and many of the

statesmanlike Senators with whom he mingled, could be beholden to, not

to say slaves of, swarthy, sinister men, many of them ex-convicts, who

traffic in bodies of women, making and supplying dope-fiends, dealing

in extortion, smuggling, bootlegging, hijacking, bribing and murdering

in the principal cities and states of the union; that these hyenas were

a controlling influence in nominations and elections; that they owned

vast commercial and industrial enterprises, labor unions, even some

newspapers, and that their pirate hands gripped the steering wheels of

enormous financial fleets.

He read it. But he couldn’t believe it. And what he did believe of it

he couldn’t digest.

Now he finds himself in the middle of a giant whitewash. He is the

chump whose good name is used to shield the key figures of the Mafia

and obfuscate their tie-up with the big city Democratic machines. He

does not admit it publicly but he is heartbroken.

Senate Republicans, seeking an issue, jumped in to support the proposed

investigation. Kefauver’s bill at once became a hot potato the

Democrats couldn’t drop.

Dave Niles, Bill Boyle, J. Howard McGrath, and Scott Lucas huddled.

They found it was too late to sidetrack the proposed investigation;

it had to go on, but with “sensible” safeguards. Suggestions that

the probe be transferred to other committees were waved aside as

impractical; it was necessary to have a front for this and Kefauver

was perfect for the job. He is a man of personal honesty, with no

embarrassing machine or underworld connections.

The committee was voted, but with the surprising proviso that the

Vice President should name the minority party members. This was

unprecedented. Minority leaders always choose their own committee

members. The purpose of this tactic was to deal Michigan Senator Homer

Ferguson, the Republican’s top investigator, out. Membership was

limited to five, three Democrats and two Republicans. Thereupon Vice

President Barkley followed orders, named two GOPers, one harmless.

Both were in the middle of violent primary campaigns, fighting for

political survival. It was known they could not spend much time with

the committee. Wiley, a good man, is a ranking minority member of

the Foreign Relations Committee. He was kept close to that post by

the Korean mess. Julius Cahn, Wiley’s intelligent aide, was rendered

impotent. And Tobey is more a New Dealer than most Democrats. He got

campaign support from the administration, and in payment gratuitously

but muddle-headedly blamed gambling in New York on Dewey.

The motor of a Senatorial investigating committee is its counsel and

the staff. The members have other duties, must attend other committee

meetings, must be on the floor for roll-calls. And they are not

usually professional prosecutors. They are at the mercy of their staffs.

That’s when the shenanigans began. Kefauver had no experience with such

shenanigans. He didn’t know whom to retain. Tom Murphy, Alger Hiss’

nemesis and later Police Commissioner of New York, was recommended. But

Murphy was persona non grata in Washington because he had guts enough

not to throw the Hiss prosecution, after he had learned that would

please the Attorney General’s office.

Dave Niles told Kefauver to ask Ferdinand Pecora for advice. Pecora,

then a Justice of the New York State Supreme Court, was getting by on

the reputation of having exposed the money barons of Wall Street in the

early 1930’s. Pecora is a thoroughgoing New Dealer and Kefauver is one

of the faithful. They failed to tell the man from Tennessee that Pecora

is Bronx boss Ed Flynn’s man. Flynn is head of the machine in which

Frank Costello is a power. Pecora attended Costello’s celebrated party

at the Copacabana nightclub, with half the local bench, a number of

jurists who owed their robes to Costello.

Pecora recommended his protégé, Rudolph Halley, of the law firm of

Fulton, Walter and Halley, for counsel and Felix Frankfurter phoned

to confirm it. Halley had been on the staff of the Truman Committee

when Fulton was its chief counsel, so he looked good to Estes as an

experienced prober. But Halley had been an attorney for the Hudson &

Manhattan Railroad, in which it was alleged underworld characters owned

stock. Kefauver told your reporters he had heard a rumor Halley might

have represented them, and had asked him about it before hiring him.

Kefauver looked us in the eyes and stated, “Halley said it wasn’t so.

Naturally, I took his word for it.”

After the Kefauver Committee had been functioning some months, Halley

admitted to your reporters before witnesses, that he knew there were

large underworld holdings in that company, which had been his client.

We have a sworn affidavit which reads as follows:

“Mr. Halley stated that the statement in the book _Chicago

Confidential_, to the effect that the underworld syndicate has bundles

of stock in the Hudson & Manhattan tubes, was substantially correct;

that it was his own personal knowledge, as former counsel for the

Hudson & Manhattan Railroad, that the underworld owned large blocks of

stock in that company.”

After a change in management, Halley was dismissed from the H & M,

and went to work for the Kefauver Committee at $120 a week. The new

management of the railroad said it had virtually eliminated suspicious

stockholders and emasculated shady directors who could not be fired.

Among the investigators hired by the committee were ex-cops,

disappointed lawyers and the usual Washington hanger-on-ers,

recommended for jobs by influential friends.

Kefauver’s principal source of information about the underworld was

what he had read in _Chicago Confidential_, He knew no more. He asked

Mortimer to take a leave of absence from his newspaper and act as paid

adviser to the committee. Mortimer accepted, but said that he would

take no compensation. Over the weekend, Kefauver withdrew his offer in

a telegram in which he blamed other Senators. He said they feared other

newspapermen would be offended. That was an alibi, quickly arranged

when influential Democrats vetoed the idea. But he took advice from Nat

Perlow, editor of the Police Gazette!

At the first open hearing of the committee, subpenaed gamblers

were represented by Morris Shenker, St. Louis lawyer, formerly on

the Missouri Democratic committee. As a result of his good work in

obtaining campaign donations, Shenker was named by Bill Boyle to the

Democratic finance committee. He hastily resigned after the deal was

exposed in Lait’s column.

Every effort was made to keep Kefauver concentrated on gambling.

Syndicate heads know the nation is not shocked over bookmaking.

Whenever witnesses or informers got hot on narcotics, the spine of the

Syndicate system, or began to talk about the huge investments of the

underworld in legitimate business, they were brushed off. There were

rumors of fixes, payoffs and other such skulduggery, though Kefauver

was absolutely in the clear. But whenever he was warned such things

were happening, Kefauver, a softie at heart, who believes evil of no

one, said it was impossible.

Though he promised your reporters his committee would hold open

hearings in New York and Chicago before election, at which no punches

would be pulled, he folded up like a frightened puppy. After one day in

New York, at which no one of importance was questioned, the committee

adjourned until after the election, with the statement that Joe Adonis,

who had been allegedly sought for 90 days, was unavailable. Your

reporters saw Adonis every night at the corner of 50th Street and

Broadway while committee investigators were supposed to be searching

for him. While the great man-hunt was supposed to be on, Adonis

voluntarily surrendered himself to New Jersey authorities who wanted to

prosecute him for gambling.

When asked why Costello hadn’t been called before election, a committee

spokesman stated “We have nothing to ask Mr. Costello.”

Similar wariness was shown in Chicago. When former police captain Dan

Gilbert, who was Jake Arvey’s hand-picked candidate for sheriff of

Cook County, was on the stand at a secret hearing, he was questioned

about his wealth. Your authors had exposed him as the richest cop in

the world, a millionaire. Gilbert’s salary had never topped $9,000

a year, yet he admitted at the closed hearing he owned more than

$350,000--which he said he had acquired through “speculation.” The

committee dropped it then. Senator Kefauver, in an interview, said,

“Captain Gilbert was a forthright witness.” When the _Chicago Sun

Times_, a Democratic New Deal newspaper, got hold of the minutes of

the secret hearing and splashed the text on Page 1 a few days before

election, Kefauver threatened to hold someone in contempt for the

leak. Yet the committee did not explain why this information of public

interest had been bottled up before election, and why Gilbert’s bank

accounts and securities had not been scrutinized.

Later, Kefauver imperiously “directed” Eugene C. Pulliam, publisher

of the _Indianapolis Star_ and _News_, “to discontinue” publication

of a series exposing gambling as revealed by previous committee

investigations, under penalty of a contempt citation.

While Estes was threatening other newspapermen with jail, columnist

Drew Pearson, his fervent supporter, was permitted to obtain access

to secret committee records, including highly confidential income tax

returns.

Wherever the committee held hearings, its staff tried to pick on the

little guys, fingered as the goats. The procedure in Miami was to put

six local Jewish bookmakers out of business. The Mafia was muscling in

on them anyway. The dispossessed were scheduled to be closed up so the

Chicago Sicilian mob would have clear sailing in Miami as soon as the

hullabaloo about the crime investigation blew over next year.

Washington Confidential · 第 18 / 30 段