The Mafia Encyclopedia (11 page)

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Authors: Carl Sifakis

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Page 22
confederation of forces that left each supreme in his own area. Above all, the conferees understood the need for working with all ethnics. In fact, almost half of them were Jewish; in terms of the power they represented, they probably composed a more potent force than the Italians.
In reality the conference was the creation of two men of like thoughtsMeyer Lansky and Johnny Torrioboth of whom saw the virtue of establishing a syndicate of cooperation. Plans were laid at the meeting for activities after Prohibition. It was agreed that the gangs would get into the legitimate end of the liquor business by acquiring distilleries, breweries and import franchises. It was agreed there was a big future in gambling and the country was divided into exclusive franchises for both the liquor and gambling campaigns.
Emphasis was laid on the fact that all these activities had to be apportioned peacefully to avoid the sort of gang wars that would inevitably lead to governmental crackdowns. The successful Seven Group that resolved the bootlegging wars was held up as the way of the future.
This, it was agreed, did not mean force would not have to be used to achieve this end. All the conferees understood that the Luciano-Lansky forces would have to employ considerable violence to get rid of the old-line mafiosi. No one at the time articulated the idea but the conference had agreed to kill off the Italian Mafia and replace it with an American Mafia, one that functioned within an all-ethnic combination. Capone certainly understood he had to rid Chicago once and for all of Mafia kingpin Joey Aiello; that task was accomplished the following year.
Overall, both Torrio and Lansky had hoped the conference would go even further in establishing the crime syndicate, but overall they were satisfied with the results. It had been a conference that started out badly and still managed to end with Capone and Johnson embracing one another.
Never before had so much been accomplished by such a group of important criminals, and it had been done in most unorthodox manner. Many decisions were taken as the leading criminals in America walked barefoot through the water, their pants legs rolled up. In such fashion empires were carved out and decisions made on who would live and who would die.
See also:
Seven Group
.
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B
Bagman: Payoff man or collector
Although the word
bagman
was first applied in the United States to traveling salesmen who carried their wares in bags, "bagmen" maintained a different livelihood in underworld parlance. Stolen goods were carried off in bags by thieves, who thus became bagmen. Later they sold the loot to fences who also carried the booty around in bags, often to give the appearance of being salesmen. Since fences were always in peril of being caught by police, they carried a supply of money in their bags to pay their way out of trouble. In time, the term
bagman
exclusively connoted an underworld character who carried around moneycash to be used for bribes, or already collected from bribers, or for other illegal enterprises.
The Mafia was always big on using women as bagmen. The most famous of these was Virginia Hill, probably the bedmate of more mafiosi than any other woman in America. During the Kefauver hearings, the senators tried to figure out why she was used so much as a bagman. In executive session, Senator Charles W. Tobey of New Hampshire professed puzzlement why so many men in organized crime were so willing to give her expensive presents and large sums of money.
"Young lady, what makes you the favorite of the underworld?" he asked Hill
.
"
Senator," a much-sanitized version of her reply went, "I'm the best goddamned lay in the world
."
Certainly less outspoken was Ida Devine, the wife of Irving "Nig" Devine, a longtime associate of Meyer Lansky. Dubbed "the Lady in Mink" because she always dressed well, Ida once traveled by plane from Las Vegas to Los Angeles and then by train to Chicago and Hot Springs where she picked up more money before returning to Chicago. She then flew to Miami, her handbag always clutched tightly in her hand. That was hardly surprising since she was carrying $100,000 in cash. At the end of the line she handed over the money to Meyer Lansky.
The top payoff man of the Capone-Chicago syndicate was Greasy Thumb Guzik, so-called because his fingers got greasy from handling so much money. He was the mob's bagman in paying off police and politicians. His duty was to sit nightly at a table at St. Hubert's Old English Grill and Chop House, where district police captains and sergeants could pick up their payoffs. Other visitors to Guzik included bagmen for various Chicago mayors and other high officials. It was entirely fitting that Guzik died at work and with his boots on, at St. Hubert's partaking of a sparse meal of lamb chops and a glass of Mosel. Less philosophical were those who had not made their pick-ups in time.
It was well known that mob payoffs in New York City for years went through Frank Costello, although it seems likely that he seldom handled the money directly. For instance, for many years payoffs to the police department were handled by Joe Cooney, better known as Joe the Coon. Every week he delivered $10,000 in small bills to the commissioner's office, a sum said to have been increased to $20,000 during the regimes of Joseph A. Warren and Grover A. Whalen. Because he was a redhaired, freckle-faced Irishman, Joe the Coon attracted little attention as he walked about with a brown paper bag (stuffed with bills). Still, Lucky Luciano advised Costello
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to instruct Joe the Coon to change a lightbulb in the building now and then so he blended in even more.
The Kefauver Committee crime hearings in the early 1950s dug up facts on how bagmen operated during the reign of Mayor William O'Dwyer. Frank Bals, always close to O'Dwyer and seventh deputy police commissioner, admitted to the committeeand later retractedthat while he and his 12-man staff were charged with investigating gambling and corruption of the police department, they turned matters completely around. Bals said they were actually bagmen for the police department, collecting payoffs from gamblers and parceling it out at headquarters.
Occasionally, the financial mastermind of the syndicate, Meyer Lansky, personally played bagman when the recipient was very highly placed. He handed over huge sums to Huey Long, the political dictator of Louisiana, and Fulgencio Batista, the dictator of Cuba. In the case of Huey Long, Lansky and his aide, Doc Stacher, arranged to pay the Kingfish three to four million dollars a year, in Switzerland, where the tax men, hot after Long, would never find it.
Stacher explained to him, "You have nothing to worry about. We'll take the money there for you with our special couriers and nobody but you and us will know your number. And only you will be able to draw on the account. Your signature and secret code which you will give the bankyou don't even have to tell uswill be your protection. To put money in, all we need is the number. To draw it out, you need the code that only you will know. You must never write it down. Keep it in your head."
Naturally, Long was deeply impressed and allowed the Lansky-Costello forces to take over gambling activities in his domain. Somehow a bagman loaded with ready cash has a way with people.
Baldwin Wallace College: "Mafia U."
Within certain law enforcement circles and, most likely, among the ranks of organized crime, small Baldwin Wallace College in Berea, Ohio, is referred to as "Mafia U." Although the arrangement has never been quite clear, Alfred Bond, the president of the college, was known to have given a commitment to government agents that the school would falsify its records to provide backgrounds for former mafiosi. Neither the U.S. Justice Department nor President Bond ever discussed the number of repentant mafiosi that eventually were added to the alumni lists, but noted television reporter Fred Graham in his book,
The Alias Program
, puts it a shade more kindly than using the Mafia U. sobriquet "... it seems possible that this tiny Ohio college could have developedwith Justice Department assistanceone of the largest Italian-American alumni groups in the Midwest.''
Eventually, there is little doubt that Mafia snoopers learned to look for a Baldwin Wallace background when tracking possible "new citizens" in the government's witness protection program. It may also be presumed that Mafia U.'s participation in salvaging former mafiosi probably tapered off.
The school's experience in the program may not always have been a happy one. Fabricating a college background is no easy chore; a great many bases at an institution have to be meticulously covered to make the phony background stand up. Justice Department bungling sometimes made the job that much harder.
In one case, a cover history for a prize informer, Gerald Zelmanowitz, assigned him the new name Paul J. Maris. His bogus résumé stated: "9/53-6/55Baldwin WallaceBerea, Ohio." However, in answer to inquiries, the registrar's office at one time verified that "Maris" had been awarded a bachelor of science degree in 1957. Yet in other cases the office of admissions reported there was no record of a Paul Maris ever having attended Baldwin Wallace College. Later, President Bond insisted that the Justice Department simply had never included Maris's name as one to be inserted in the records, an oversight that contributed mightily to the many mishaps in the masquerade. Eventually Maris was unmasked as a non-person when his picture failed to turn up in the school yearbook.
All in all it was hardly a stirring example of higher education in action.
Balistrieri, Frank P. (19181986): Milwaukee Mafia boss
Although feared by his local "button men" (soldiers), Frank Balistrieri never ranked high in nationwide Mafia or crime syndicate councils. This is explained by Milwaukee's proximity to Chicago.
Noted for spreading its Windy City tentacles over much of the country and operating on the proposition that everything west of Chicago belongs to them, the Chicago Outfit's claim is not entirely recognized in Las Vegas, Arizona or California. But other domains, notably Kansas City and Milwaukee, are another matter.
In September 1985 Balistrieri and eight others were tried in federal court on charges of skimming $2 million of the Argent Corporation's gross income from casino operations. Allegedly, the defendants skimmed the money as a tax dodge and then distributed the cash to organized crime interests in Kansas City, Chicago, Milwaukee and Cleveland.
Balistrieri had gotten a share but whether it was a fair share is debatable. Both the late Kansas City don Nick Civella and Balistrieri felt they were entitled to

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