The Mafia Encyclopedia (44 page)

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Authors: Carl Sifakis

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BOOK: The Mafia Encyclopedia
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Page 119
not clear, although some in the underworld view his sending Louis Lepke to the electric chair in 1944 as having a link with the alleged payoff from the mob. At the time the right wing press, especially the Hearst
New York Daily Mirror
, speculated that Lepke, one of the top-ranking members of the national crime syndicate, tried to save his own life by offering Dewey "material ... that would make him an unbeatable presidential candidate." The thinly veiled reports inferred that Lepke could deliver to Dewey Sidney Hillman, president of the Amalgamated Clothing Workers and President Franklin Roosevelt's most important labor adviser, as the instigator of several crimes including one of murder. In any event, Dewey, after granting Lepke a 48-hour reprieve, did not deal with Lepke and let him go to his death.
Many Dewey sycophants lionized him for that act. Prosecutor Turkus said, "To the credit of Dewey, he did resist and he did reject. He would not do business with Lepke, even with the greatest prize on earth at stakethe presidency of the United States." But had Dewey granted clemency to Lepke, it more than likely would have guaranteed his defeat. If he had gotten Hillmanassuming Lepke could deliver himthe price essentially would have been letting such men as Luciano, Shapiro, Adonis, Costello, Lansky and Anastasia off the hook on murder charges. Indeed, Lepke indicated he would leak no mob information. To let Lepke live for the price of Hillman alone (although Hillman was never directly named) would appear a politically motivated effort to dethrone FDR by nailing his chief labor adviser.
There are other explanations to the incident, especially that Lepke might not have been able to hand Dewey the labor leader because he had no evidence. When Lepke was strapped into the electric chair, it was likely that the biggest sighs of relief came not from Hillman or the White House, but from the ruling board of the crime syndicate. They inherited Lepke's racket empire and none of the headaches he might have given them.
By the early 1950s, Dewey, disappointed at the end of his White House hopes, also exhibited considerable disinterest with his racketbusting past. His actions regarding the Kefauver crime investigation hearings in 1950 and 1951 were disturbing even to Republicans on the committee and in congress. Dewey refused to appear at the New York City sessions although he said that if given enough advance notice he might offer the senators a few minutes of his valuable time in his private office. The offer made no allowances for the committee's staff or counsel, investigators, court stenographers and so on, and under these circumstances, they declined leaving New York City for Albany. In refusing to appeara remarkable position for a racketbuster who had constantly hauled witnesses in for questioning and declared an innocent man would want to help official inquiriesDewey's behavior differed little, many held, from the actions of mobsters thumbing their noses at the U.S. Senate.
The committee wanted to question Dewey about the facts surrounding Luciano's pardon, an action he had never been obliged to answer in an official forum, and also about the wide-open gambling in Saratoga in upstate New York, where evidence indicated the rackets and the fix were operated by Meyer Lansky. From the evidence the committee did hear, Governor Dewey was just about the most uninformed man in the state on gambling in Saratoga. His superintendent of the state police, John A. Gaffney, said it was not his responsibility to do anything about gambling there or pass along information about it to Dewey. However, even deprived of police intelligence, Dewey undoubtedly had to know what was going on in Saratoga, a watering hole for the social set in which Dewey mixed. Yet Dewey's ignorance about gambling was not repeated concerning bailiwicks other than in his own state, if the words of gambling expert John Scarne are to be accepted. Scarne related he once asked Dewey at a Republican rally in the Waldorf Astoria why he had cold-shouldered the committee. Dewey responded, according to Scarne, more or less in the following words: "Scarne, I knew that when I issued that invitation to Kefauver and his four Senate stooges, they would never show up in Albany. They knew that I knew that the Committee members' five states had more political corruption, gambling, casinos, bookies and houses of prostitution than any other five states in the country."
Thus we are left with a governor of New York knowing more about crime and corruption in such states as Tennessee, Maryland, Wisconsin, Wyoming and New Hampshire (of all places) than in his own.
Had the Dewey misadventures ended with Kefauver, his acts still might be construed as nothing more than political competitiveness, even though a number of other governors from both partiesStevenson of Illinois, Lausche of Ohio and Youngdahl of Minnesotahad eagerly cooperated. By the early 1960s however Dewey had become more accommodating than ever about mob gangsters and the way they operated in the new gambling scene. The former racketbuster became a major stockholder in Mary Carter Paints, which somehow just seemed to have an interest in gambling in the Bahamas. And on Grand Bahama the man pulling the strings for Mary Carter Paints (later renamed Resorts International) was none other than Meyer Lansky, who had long before learned how to invest secretly in companies through the wonders of Swiss bank accounts. While this did not disturb Dewey, it appears to have
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upset reporters for the
Wall Street Journal
who uncovered the seamy story of political payoffs on the islands and won a Pulitzer Prize for their efforts.
Despite considerable turmoil Mary Carter still went ahead. The casinos that opened were filled with familiar racket faces behind the tables and in the management offices, and the manager of one of the clubs was Lansky's man Eddie Cellini (brother of Dino Cellini who ran Lansky's interests in England).
It was a rather sorry finale for Tom Dewey. "From racketbuster to racketbacker," someone said. It may have been a harsh verdict, but in a field where some behavior is required to match that of Caesar's wife, Dewey could not be said to have won a cigar.
See also: "
Kefauveritis
."
Diamond, Jack "Legs" (1896-1931): Lone wolf racketeer
Jack "Legs" Diamond was often called the "clay pigeon of the underworld" because he survived so many attempts on his life. Nobody liked Legs. The police hated him, Dutch Schultz hated him and so did a varied group of mobsters, including Owney Madden, Vince Coil, Meyer Lansky, Waxey Gordon, Louis Lepke, Gurrah Shapiro and Lucky Luciano to name just a few. It was said in the end that gunners for Schultz put Diamond to sleep permanently after catching him snoozing in his bed. But it would only have been a matter of time before one of the above, or one of several others, knocked him off. Legs Diamond was a double-dealer and a chiseler, and he was never known to keep his word to anyone, except maybe to his brother Eddie.
Some said the nickname of "Legs" came about because in Diamond's early days as a package thief his long limbs never failed to carry him beyond the law's reach. But other underworld cynics said he was so named due to his habit of "running out on his friends." Typical was the case of Diamond's henchman-bodyguard John Scaccio who did the dirty work for the Diamond mob when they sought to take over a number of rackets in Greene County, New York. When Diamond himself escaped prosecution in the case, he put up no money for Scaccio's defense, withdrew his attorneys from the case and let Scaccio face the music alone. Scaccio drew a long prison term. Diamond was equally infamous for promising his boys who went to prison that he would pull some strings to get them freed early. Naturally, as soon as they were gone, he forgot about them.
After his early heisting days Diamond showed up slugging and killing for Little Augie Orgen, the top labor racketeer in the early 1920s. Diamond is credited with masterminding the killing of Kid Dropper which made Little Augie number one in the field. Little Augie turned over to Diamond some of his bootlegging enterprises. It turned out that Little Augie was the last man Diamond was loyal to. He served as his bodyguard and even took some bullets in his arm and leg when Little Augie was gunned down on a Lower East Side street in 1927. Diamond's loyalty, however, did not extend to seeking revenge against his boss's killersLouis Lepke and Gurrah Shaiprowhom he had recognized. When he was released from the hospital, he made peace with them. Lepke and Gurrah took over Little Augie's labor rackets while Diamond took over the rest of the deceased's bootleg business and his narcotics operations. From there on Legs understood the rewards of disloyalty.
Bucking the national crime syndicate, Legs Diamond (Foreground, left)
became known as the "clay pigeon of the underworld" because of
the many attempts on his life. He was called "unkillable"until three bullets
in the head, while he was sleeping, gave the lie to that label.
Diamond was catapulted into the big time. He became a Broadway sport, even opening through fronts his own joint, the Hotsy Totsy Club on Broadway in the 50s. Diamond often invited underworld rivals to peace meetings there. Many of them ended up murdered in a back room.
In 1929 Diamond and his lieutenant, Charles Entratta, killed a hoodlum named Red Cassidy right at
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the bar in full view of a number of Hotsy Totsy employees and patrons. Diamond and Entratta fled certain arrest and conviction. From hiding they decided to clear themselves and did so by killing the club bartender and three customers. Four others, including the hat-check girl, disappeared. Diamond and Entratta were clairvoyant enough to suspect the witnesses would not reappear. With no one left to testify against them they resurfaced and said blandly they understood the police wanted to talk to them about something. Naturally, they were not prosecuted.
However, Legs's absence had created some complications. Dutch Schultz had moved in on Diamond's rackets while he was gone. What the Dutchman took, he was seldom known to return. A full-scale war began.
War had almost broken out between them in 1928 when Legs suspected Schultz of sending an expeditionary force out to Denver to kill Eddie Diamond, his brother, who was battling tuberculosis. Later Diamond determined that the great brain of the underworld, fixer Arnold Rothstein, was behind the attempt. After Little Augie's death in 1927 Diamond had worked for Rothstein and served him as a high-priced bodyguard. Rothstein, Broadway's leading gambler, paid Diamond $1,000 a week to protect him from poor losers at cards, to escort heavy winners to their homes and to persuade debtors to pay up. Meanwhile Rothstein helped Diamond expand his bootleg and drug operations, but the pair quarreled just before Rothstein's murder and split up. As an object lesson to Legs, Rothstein sent the hit squad to get Eddie. Eddie survived and lived to come East and die in bed of his affliction, but Diamond exacted full vengeance on the five hit men, killing them all.
Now in the war with Schultz the rest of the underworld cheered Schultz on, supplying him with any information they got on Diamond's doings. Schultz was himself a rogue elephant within the emerging national crime syndicate but compared to Diamond he could be regarded as a solid team player.
There were those who were convinced that Diamond would never be killed, that he in fact couldn't be killed. In the past it had been that way. In October 1924 rival gunmen peppered his head with shot and put a bullet in his heel in an ambush. Diamond drove himself to the hospital and got his wounds tended. The second near miss on his life came when Little Augie was assassinated. Diamond lost so much blood from wounds that doctors said he could not survive. He did.
The war with Schultz added to his battle injuries and his reputation for being murder-proof. Shortly after he personally knocked off a pair of Schultz enforcers in October 1930, Legs was curled up in a cozy suite with his mistress, showgirl Kiki Roberts. Suddenly gunmen stormed in and pumped him full of lead. Kiki escaped injury and called for an ambulance. Legs was sped to the hospital where, confounding the doctors, he survived. The following April Diamond was ambushed coming out of a roadside inn. He took a bullet in the back, another in the lung, a third in the liver and a fourth in the arm. Again, the surgeons said he had no chance. Again, Diamond recovered.
By now Legs himself was convinced he was unkillable. When a gangster informed him that a couple of Brooklyn mugs had been sent to get him, he replied, ''What the hell do I care?"
Meanwhile Diamond was terrorizing a great many mobsters. He let it be known that when he was fully recovered from his wounds he was taking a bigger piece of the action in Manhattan. He served notice on Joey Fay that he was taking over more of the nightclub rackets and Waxey Gordon that he was getting more of the bootlegging and moonshining business. Lansky and Luciano realized they were going to be next on Legs's "want list."
Thus, it was never determined with certainty exactly who were the hitters who put Legs away in December 1931. Diamond was hiding out in a room in Albany, New York, a location known only to a few of his confederates. He was sound asleep when the two hit men slipped into the room. One held him by the ears while the other shot him three times in the head. Diamond this time was absolutely, positively dead.
See also:
Horsy Totsy Club
.
Dickey, Orange C. (1920-): Army captor of Vito Genovese
The experiences of a 24-year-old sergeant in the army's Criminal Investigation Division, Orange C. Dickey, demonstrated the difficulty that has always existed in prosecuting Mafia-connected members of organized crime. A former campus cop at Pennsylvania State College, Dickey broke the case of a lifetime when he arrested American mafioso Vito Genovese in Italy in 1944 on black-marketing charges.
Genovese had fled to Italy in 1937 to escape a murder rap. He became a fervent supporter of Benito Mussolini, even to the extent of having a political opponent of the Italian dictator hit in the United States. When by 1944 it was obvious which side was going to win the war, Genovese switched his allegiance once again. He turned up at the headquarters of the Allied military governor, Colonel Charles Poletti, formerly New York lieutenant governor under Thomas E. Dewey, and ended up becoming an official interpreter on Poletti's staff, assigned to the huge supply base at Nola.
It was a case of putting the fox in charge of the hen house, and Genovese soon parleyed his position into that of the biggest black-market operator in occupied

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