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Full text of "Investigation of organized crime in interstate commerce. Hearings before a Special Committee to Investigate Organized Crime in Interstate Commerce, United States Senate, Eighty-first Congress, second session, pursuant to S. Res. 202 .."

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INVESTIGATION OF ORGANIZED CRIME 
IN INTERSTATE COMMERCE 



HEARINGS 

BEFORE A 

SPECIAL COMMITTEE TO INVESTIGATE 

OEGANIZED CKIME IN INTEKSTATE COMMERCE 

UNITED STATES SENATE 

EIGHTY-FIEST CONGEESS 

SECOND SESSION 
PDRSDANT TO 

S. Res. 202 

A RESOLUTION AUTHORIZING AN INVESTIGATION 

OF ORGANIZED CRIME IN INTERSTATE 

COMMERCE 



PART 1 



FLORIDA 



MAY 26 AND 27, JULY 13, 14, AND 15, AUGUST S 
AND 10, AND SEPTEMBER 19, 22, AND 26, 1950 



Printed for the use of the Special Committee to Investigate 
Organized Crime in Interstate Commerce 







NVESTIGATION OF ORGANIZED CRIME 
IN INTERSTATE COMMERCE 



HEARINGS 

BEFORE A 

SPECIAL COMMITTEE TO INVESTIGATE 

DEGANIZED CRIME W INTERSTATE COMMERCE 

UNITED STATES SENATE 

EIGHTY-FIRST CONGRESS 

SECOND SESSION 
PURSUANT TO 

S. Res. 202 

A RESOLUTION AUTHORIZING AN INYESTIGATION 

OF ORGANIZED CRIME IN INTERSTATE 

COMMERCE 



PART 1 , v\^' 



.<V^ 



V 



FLORIDA 



MAY 26 AND 27, JULY 13, 14, AND IJ- AUGUST 9 
AND 10, AND SEPTEMBER 19, 22, AND 26, 19o0 

Printed for the use of the Si>ecial Committee to Investigate 
Organized Crime in Interstate Commerce 




UNITED STATES 
GOVERNMENT PRINTING OFFICE 
^gy^g WASHINGTON : 1950 







,^v 



Cofi 



SPECIAL COMMITTEE TO INVESTIGATE ORGANIZED CRIME IN 
INTERSTATE COMMERCE 

ESTES KEPAUVER, Tennessee, Chairman 
HERBERT R. O'CONOR, Maryland CHARLES W. TOBEY, New Hampshire 

LESTER C. HUNT, Wyoming ALEXANDER WILEY, Wisconsin 

RUDOLPH Halley, Chief Counsel 

II 



CONTENTS 



Testimony of — Page 

Allenberg, Abe, 3301 Collins Ave., Miami Beach, Fla___ 29, 89^125, 475-487 

Burbridge, William, city councilman, Miami Beach, Fla 430-434 

Burk, Thomas G., deputy sheriff, Dade County, Fla 194r-213 

Clark, Walter, pherifl", Broward County, Fla., accompanied by C. L. 

Chancey, attorney 126-134, 452-475 

Cohen, Ben, attorney, Miami Beach, Fla 492-531 

Costa r, Charles B., accountant, 903 First National Bank Building, 
Miami, Fla., accompanied by William G. Ward, attorney, 1229 

Dupont Building, Miami, Fla 30-41 

Crosby, William O., investigator for the Governor of the State of 
Florida, accompanied by Mr. Starrey, attorney, Tallahassee, 

Fla 370-386 

Eisen, Ben, accountant, 1308 Harrison Street, Hollywood, Fla 4-26 

Eisen, Seymour, Hollywood, Fla 4-26 

Ervin, Richard, attorney general, State of Forida, accompanied by 

Messrs. Gasque, Toni, and Norton, of attorney general's staff 177-191 

Fant, Julian E., treasurer, Warren Campaign for Goveimor 366-369 

Pulenwider, Jack, former investigator for Crime Commission of 

Greater Miami, Fl:. 280-282 

Fulford, S. R., policeman, town of North Miami, Fla 272-278 

Furman, M. G., accountant, Miami Beach, Fla 284-237, 434-445 

Gips, Leon, Miami Beach, Fla 411-420, 423 

Goldman, Abe A., public-relations agent, Miami, Fla 284^290 

Griffin, C. V., Howey-in-the-Hills, Fla., accompanied by David Reich, 

attorney. Washington, D. G 353-366, 596-599 

Hall, David W., accountant, Miami. Fla 306-316, 328-330 

Harkness. Alistair G.. Dade County, Fla 290 

Hart, Ralph M.. accountant, 310 Citizens Building, West Palm Beach, 

. Fla., accompanied by Mr. Chappell, attorney, Miami, Fla 43-65 

Hawkins, J. L., chief criminal deputy, sheriff's office, Dade County, 

Fla 278-280 

Hibbs, Mrs. Hazel, 246 Northwest Thirty-first Street, Miami, Fla 26-29 

Howden, R. W., investigator for Equitable Life Assurance Co., 1428 

Northwest Thirty-second Street, Miami, Fla 191-194 

Johnston, William H., Jacksonville, Fla., and Chicago, 111., accom- 
panied by John W. Pehle and Laurence S. Lesser, attorneys, Wash- 
ington. D. C 600-609,616-655 

Levitt, Jules, Miami Beach, Fla.. accompanied by Ben Cohen, attornev, 

Miami Beach, Fla '532^547 

Levitt, Leo, Miami Beach, Fla.. accompanied by Ben Cohen, attorney, 

Miami Beach, Fla 547-556 

Milledge, Stanley, .ludge, circuit court of Dade County, Fla 144-152 

Morris, Walter, assistant director of communications. National Air- 
lines, 1947 Northwest Forty-eighth Street, Miami, Fla 140-144 

Neu, Mrs. Gladys, Aberdeen, ^Md., accompanied by John L. Laskey, 

attorney 1 , '718-730 

Neu, Richard A., Aberdeen, Md., accompanied by John L. Laskey, 

attorney ' '707-718 

O'Rourke, John F., 521 Second Street, Miami, Fla 66-89, 445-452 

Parker, Robert, 903 First National Bank Building, Miami. Fla., accom- 
panied by Robert C. Ward, attorney, 1229 Dupont Building, Miami, 

Fla 1-4 

Perdue. Pat, vice squad, Miami Beach, Fla 420-430' 

III 



IV 



CONTENTS 



Testimony of — Continued ^^^^ 

Perkins, S. M., accountant, 340 Candia, Coral Gables, Fla_— 174-177, 282-283 

Plissner, Harry, Miami Beach, Fla 332-337 

Rice, Maj. Thomas A., and Mrs. Kuth M., Aberdeen, Md 703-707 

Richard, Melvin J., city councilman, Miami Beach, Fla 213-230 

Rosenbaum, Edward, 1040 Venetian Way, Miami, Fla., accompanied 

by Ben Cohen, attorney, Miami Beach, Fla 55e-577, 591-596 

Rush, John A., attorney, Jacksonville, Fla 387-407 

Russell, Harry, Miami Beach, Fla 657-662, 664-687 

Salvey, Harold, Miami Beach, Fla., accompanied by Ben Cohen, 

attorney, Miami Beach, Fla 577-590 

Schine, Meyer, Miami Beach, Fla., accompanied by Oscar L. Gruber, 

attorney. New York, N. Y 346-353, 611-616 

Short, Phil R., lieutenant of police, Miami Beach, Fla 407-411 

Sullivan, Daniel P., operating director, Crime Commission of Greater 

Miami, Fla 152-174 

Sullivan, James A., sheriff, Dade County, Fla., accompanied by Richard 

M. Hunt, attorney, Miami Beach, Fla 237-271, 283-284, 291-331 

Ta.vlor, Harry G., attorney, 807 Dupont Building, Miami, Fla 230-232 

Voikart, Ernest, Jr., assistant cashier, First National Bank, Aberdeen, 

Md 689-696 

Voikart, Ernest, Sr., attorney, Aberdeen and Baltimore, Md 696-703 

Wolfson, Louis, Miami, E'la., and New York City ^__ 337-345 

Schedule and summary of exhibits iv-ix 

Friday, May 26, 1950 1 

Saturday, Rlay 27, 1950 43 

Thursday, July 13, 1950 135 

Friday, July 14, 1950 233 

Saturday, July 15, 1950 387 

Wednesdav, August 9, 1950 491 

Thursday, August 10, 1950 610 

Tuesday, September 19, 1950 , 656 

Friday, September 22, 1950 663 

Tuesday, September 26, 1950 688 

Appendix 731-798 

Supplemental data 798-804 

SCHEDULE OF EXHIBITS 



Number and summary of exhibits 



1. Greenacres Casino summary, 1949-50 ledger 

2. Greenacres Casino payroll ledger, 1950 

3. Club Eoheme payroll ledger, 1950 

4. Club Boheme, 1948-49 and 1949-50 seasons' ledgers. _. 

5. Greenacres Casino cash book, 1949-50 

6. Club Boheme cash book, 1948-49 and 1949-50 

7. Income-tax return of Club Boheme, 1948 

8. Federal income-tax returns of Jake Lansky, 1936-48; 

also, Louisiana and New York State returns 

9. Income-tax returns of George Sadlo 

10. Income-tax returns of S. L. Bratt 

11. Income-tax returns of Vincent Alo 

12. Income-tax returns of William and Ida Bischoff 

13. Income-tax returns of Colonial Inn 

14. Income-tax returns of Greenacres and William Bischoff, 

trading as Greenacres Club, 1945 through 1949 

15. Income-tax returns for Greenacres Club for 1944 

through 1949 

16. Partnership return, entitled "Frank Erickson, Bert 

Briggs, and Colonial Inn" 

' Returned to witness. 



Introduced 


Appears on 


at page— 


pa^e— 


5 


(0 


5 


(') 


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{') 


5 


(') 


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{') 


5 


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7 


(0 


7 


(0 


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(') 


8 


(0 


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(•) 


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(') 


9 


(0 


16 


(0 


16 


(0 



CONTENTS 
SCHEDULE OF EXHIBITS— Continued 



Number and summary of exhibits 



17. Tax returns reflecting ownership of Colonial Inn and 

sale of this property to Greenacres 

18. Statements of restaurant charges for Club Boheme to 

customers, for February 1950 

19. Unpaid bills of Club Boheme 

20. Canceled checks of Club Boheme 

21. Bank statements and canceled checks of Greenacres 

Club 

22. Six books of deposit slips for Greenacres and Club 

Boheme 

23. Some canceled checks and bank statements of Club 

Boheme and payroll-tax account 

24. Three check-books and two check-stub records of both 

the Club Boheme and Greenacres __ 

25. Miscellaneous papers of Samuel L. Bratt, Club Green- 

acres, "The Farm" and Club Boheme 

26. Sales-tax reports to the State of Florida for Greenacres 

Restaurant 

27. Accounts receivable and paid, Club Boheme, 1948-49 

season 

28. Current check book of Club Boheme 

29. Seven folders on payroll taxes 

29A. "The Farm" 

29B. Colonial Inn 

29C. Greenacres and Bishop 

29D. Greenacres 

29E. George Scherman, et al 

29F. Club Boheme 

29G. Combination Greenacres and Bishop 

30. Accident reports, Club Boheme 

31A. Accident reports, Club Boheme 

3 1 B. Accident reports, Club Boheme 

32. Lease on Club Boheme 

33. Contribution folder, Club Boheme and charities, etc 

34. Realty leases for Colonial Inn 

35. Show contracts for Club Boheme 

36. Miscellaneous correspondence for Colonial Inn 

37. Cabaret-tax folder for Colonial Inn 

38. Minute book for Bouches' La Boheme, Inc 

39. Miscellaneous papers 

39A. Canceled checks, vouchers, and bank state- 
ments 

39B. Income-tax returns; work papers, etc., re- 
lating to income-tax returns 

39C. Fifteen checks, either payable to, or en- 
dorsed by, or bearing notations with the 
name "Alickey Cohen" 

40. Income-tax file from 1942 to 1944 for Abe Allenberg.. 

Letters from Andy Pellino on the stationery of 
Henry Pellino, CPA, New York City, discussing 
AUen'berg's taxes in connection with those of 
Fi-ank Erickson 

41. Miscellaneous papers having reference to the Wofford 

Hotel 1 

42. Miscellaneous papers concerning Tropical Park and 

Gables Racing Association 

43. Photostat referring to partnership in Wofford Hotel, 

dated September 21, 1945 

' Returned to witness. 
2 On file with committee. 



Introduced 
at i>age— 



16 

19 
19 
19 

20 

20 

20 

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20 

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22 

60 

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60 
90 



90 
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90 
95 



Appears on 
pape— 



VI 



CONTENTS 
f5CHEDULE OF EXHIBITS— Continued 



Number and summary of exhibits 



44. Photostat of dooument, dated December 28, 1945, re 

formation of partnership between Allenberg, Car- 
fano, and Lorentzen 

45. Photostat of document dated April 20, 1945, giving 

Carfano authority to sign checks 

46. Assignment, dated May 23, 1946, submitted during 

Allenberg's testimony 

47. Group of checks signed by Allenberg 

48. Photograph of Anthony Carfano, alias "Little Augie" 

Pisano 

49. Photograph of Frank Erickson 

50. Photograph of Joe Adonis 

51. Photograph of Meyer Lansky 

52. Photograph of Vincent Alo, alias "Jimmie Blue Eyes" 

53. Photograph of Michael Coppola, alias "Trigger Mike".-. 

54. Photograph of Julius Kramer 

55. Photograph of Benny Karpf, alias "Benny Kaye," 

alias "Ben Schwartz," alias "Ben Kahn" 

56. Photograph of Frank Livorsi 

57. Photograph of Alfred "Poagy" Toriello 

58. Photograph of Frank Costello 

59. Photograph of George Angersola 

60. Photograph of John Angersola, alias "John King" 

61. Photograph of Romeo Jos. Civetta 

62. Photograph of Tony L. Cibetta 

63. Photograph of Carlo F. Civetta 

64. Photograph of Jo.seph Di Carlo 

65. Photograph of Sam Di Carlo, alias "Toto" 

66. Photograph of Sam "Gameboy" Miller 

67. Photograph of Fred Angersola, alias "Fred King" 

68. Photograph of Abraham "Longie" Zwillman 

69. Photograph of Joseph Friedlander 

70. Photograph of Nicholas Delmore, alias "Delmar" 

71. Photograph of William Moretti, alias "Willie Moore," 

alias "William Maretti" 

72. Photograph of Angelo "Gyp" DeCarlo, alias "Di Carlo," 

alias "Edward Meing" 

73. Photograph of William Riga, alias "Silent Martin" 

74. Photogra])h of Joseph Massei, alias "Joseph D. 

Massey" 

75. Photograph of William Gusto Bischoff, alias "Harry 

Clark," alias "Lefty Clark" 

76. Photograph of Louis Ricciardi, alias "Louie the Wop"_ 

77. Photograph of Joe Burnstein, alias "James Burnett"... 

78. Photograph of Pete Licavoli, alias "Peter Moceri," 

alias "Peter Little" i 

79. Photograph of Isadore Blumenfield, alias "Kid Cann". 

80. Photograph of Martin F. Guilfoyle 

81. Photograph of Charles Fischetti 

82. Photograph of Murray "The Camel" Humphreys 

83. Photograph of Martin Accardo 

84. Photograph of Paul Viela, alias "Ricca" 

85. Photograph of Max Pollock, alias "Caldwell" 

86. Phot ograph of Ralph Buglio 

87. Photograph of Willie Hccney 

88. Photograph of Harry Rosen, alias "Nig Rosen," alias 

"Herman Stromberg" 

89. PhotoKraph of Samuel Hoffman, alias "Cappy Hoff- 

man," alias "H. Field" __ 1 . 

90. Photograph of David Glass 

' Rotunicd to witness. 
' On flic with committee. 



Introduced 
at page- 



95 

95 

96 
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109 
109 



CONTENTS 
SCHEDULE OF EXHIBITS— Continued 



VII 



Number and summary of exhibits 



91. Photograph of Jack Silver, alias "Herman Gross," 

alias "May Rothman, alias "Frank Rosso" 

92. Photograph of Max Segal, alias "Big Shooey" 

93. Photograph of Frank Russo, alias "Tucker," alias 

"Paul Carbo," alias "Jimmie the Wop" 

94. Photograph of Abe Martin, alias "Abe Glassman" 

95. Photograph of John Rosen, alias "PMwin Goldberg," 

alias "Irving Greenberg" 

96. Photograph of Nathan Stromberg, alias "Nussie Rosen". 

97. Photograph of Joseph Herman Kriss 

98. Photograph of Tony Narcisi 

99. Photograph of Frank Matteo, alias "Matto," alias 

"Mattio," alias "Frankie Mendell" 

100. Card showing Abe Allenberg as honorary deputy sheriff 

101. Courtesy card to Abe Allenberg from Florida Sheriffs 

Association 

102. Letter to Miami Beach Kennel Club, June 15, 1944, 

from Abe Allenberg 

103. Letter from Jim Ponzio to Abe Allenberg, dated Sep- 

tember 27, 1948 

104. Letter from George Killion, treasurer. Democratic 

National Committee, Washington, D. C, to Abe 
Allenberg, dated May 6, 1947, enclosing receipt for 
$2,500 contribution 

105. Letter to Abe Allenberg, dated August 4, 1948, signed 

"Ralph" 

106. Grand-jury report, spring term, Dade County, Fla 

107. Clipping from Miami Daily News, July 11, 1950, en- 

titled "Covmty Delays Elisor Conference" 

108. Chart furnished by Daniel P. Sullivan, showing major 

gambling operations in Palm Beach and Dade County. 

109. Chart furnished by Daniel P. Sullivan, acting director. 

Crime Commission of Greater Miami, showing loca- 
tion of major gambling operations in Broward County. 

110. Chart furnished by Daniel P. Sullivan, listing guests 

at WofTord, Grand, and Sands Hotels 

111. Pictures and criminal records furnished by Daniel P. 

Sullivan 

112. Letter, dated July 19, 1949, from George F. Richard- 

son, Philadelphia Police Department to Daniel P. 
Sullivan, Crime Commission of Greater Miami, 
setting forth history of gambling operations in 
Philadelphia and Miami areas 

113. Photostat of deed from deed book 2843, page 494, 

showing transfer of property in Coral Gables held by 
John Angersola (King) and Alfred Polizzi 

114. Photostat of deed, dated July 29, 1946, showing 

transfer of property to Arthur Me Bride and Alfred 
Polizzi 

115. Photograph of subdivision known as L^niversity Estates 

of Coral Gables 

116. General ledger relating to operations of Charles and 

Sam Friedman; submitted by S. M. Perkins 

117. Journal relating to Charlie's Inn, a night club operated 

by Charles and Sam Friedman; submitted by S. M. 
Perkins 

118. Canceled checks, relating to operations of Charles and 

Sam Friedman, from January 1936, through 1949; 
submitted by S. M. Perkins 

119. Bank statements for the year 1949, relating to the opera- 

tions of Charles and Sam Friedman; submitted bv 
S. M. Perkins \ 



Introduced 
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{') 
(=) 

{') 
(') 
{') 

(.') 
732 

733 

733 

734 

734 

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735-740 

740 

741 
740 
742 



(') 



160 


743-745 


161 


746-747 


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748 


161 


{') 


175 


(») 


176 


(') 


176 


(') 


176 


0) 



1 Returned to witness. 

2 On file with committee. 



VIII 



CONTENTS 
SCHEDULE OF EXHIBITS— Continued 



Number and summary of exhibits 



Introduced 
at page- 



120. Letter from Melvin J. Richard to Robert Taylor, 

county solicitor, dated June 15, 1950; submitted by 
Melvin J. Richard 

121. Photostat of 1947-48 license of S. & G. Investment Co.; 

submitted bv Melvin J. Richard 

122. Photostat of 1948-49 license of S. & G. Investment Co_ . _ 

123. Photostat of 1949-50 license of S. & G. Investment Co_ _ _ 

124. Photostat of card attached to 1947-48 license of S. & G. 

Investment Co., signed "Leo Levitt by Ben Cohen, 
attorney" 

125. Records submitted by Harry G. Taylor, attorney, iden- 

tified in memorandum submitted to Mr. Kiley, in- 
vestigator 

126. Tax returns, bank checks, bank statements, various 

instruments of ownership of property, mortgages, 
records of tax paid: Harold Salvey and S. & G. 
Syndicate 

127. Winter-term, grand-jury report, 1948, Dade Countv, 

Fla :_- 

128. Correspondence between sheriff Sullivan and Law En- 

forcement League of Dade County; also letter from 
Tom Watson, attorney general, State of Florida 

129. Letter from Richard Hunt, attorney, to Sheriff Sullivan, 

Opinion from the supreme court of the January 
term, dated January 17, 1950 

130. Statistics from Sheriff Sullivan's office, Dade County, 

Fla., for years 1945 through 1949 

131. Statistics from Sheriff Sullivan's office, Dade County, 

Fla., for period from February 1, 1950, through March 
15, 1950 

132. Statistics from Sheriff Sullivan's office, Dade County, 

Fla., for January 1950 

133. Records of Sheriff Sullivan's predecessors in office, 1943 

and 1944 

134. Photograph of raid, showing racing wire set-up 

135. Record of raids of Sheriff Sullivan's office, for 1950 

136. Copy of bill for declaratory decree; also opinion and 

order by circuit court 

137. Photographs and criminal records, submitted by Sheriff 

Sullivan 

138. Home of John Angersola 

139. Home of Sam Taran 

140. Home of Ralph Buglio 

141. Home of Martin Leo Accardo 

142. Home of Charles Fischetti 

143. Home of Tony Accardo 

144. Letter from circuit court clerk, Sevier County, Tenn., 

to Sheriff Sullivan, regarding Jimmie Sakelaris 

145. Record of Sheriff Sulhvan's office for the second quar- 

ter, 1946 

146. Set of books for Charlie's Inn, Miami Beach, Fla., sub- 

mitted by S. M. Perkins 

147. Income-tax reports, work sheets, and papers for 1936 

through 1949 for Charles and Sam Friedman; sub- 
mitted by S. M. Perkins 

148. Bank statements and canceled checks, through June 

1950, for Charlie's Inn 

149. Paper wrapped in cellophane, submitted by Abe Gold- 

man, noting telephone numbers 

1 Returned to witness. 
» On file with committee. 
' Written into record. 



220 

224 
224 
224 



224 
232 

234 

244 

244 
247 

247 

248 

249 

249 

252 
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253 

262 

263 

263 
263 
264 
264 
264 
264 

269 

270 

283 

283 
283 

288 



CONTENTS 
SCHEDULE OF EXHIBITS— Continued 



IX 



Number and summary of exhibits 



Introducod 
at page- 



Appears on 
page- 



ISO. 

151. 

152. 

153. 

154. 

155. 

156. 

157. 

158. 

159. 

160. 

161. 

162. 

163. 
164. 

165. 
166. 
167. 
168. 
169. 
170. 

171. 
172. 
173. 



Letter from Gov. Fuller Warren to Sheriff Sullivan, 
asking cooperation of sheriff's office with Mr. Crosby, 
special investigator for the Governor of the State of 
Florida 

Photograph of Sheriff Sullivan's house at 1803 North- 
west Sixth Street 

Photograph of Sheriff Sullivan's house at 2321 South- 
west Fourth Street 

Photograph of Sheriff Sullivan's house at 2327 South- 
west Fourth Street 

Photograph of Sheriff Sullivan's house at 2370 South- 
west Fourth Street 

Photograph of Sheriff Sullivan's house at 2338 South- 
west Fifth Street 

Photograph of Sheriff Sullivan's house at 2620 South- 
west Ninth Street 

Pliotograph of Sheriff Sullivan's house at 2332 South- 
west Fifth Street 

Photograph of Sheriff Sullivan's house at 2236-2238 
Southwest First Street 

Photograph of Sheriff Sullivan's house at 2240-2242 
Southwest First Street 

Photograph of Sheriff Sullivan's house at 261 South- 
west Thirtieth Road 

Photograph of Sheriff Sullivan's house at 2485 South- 
west Fourth Street 

Income-tax returns of Sheriff Sullivan, from 1940 
through 1949 

Financial statements of Sheriff Sullivan, 1944 and 1950_ 

List of contributions collected by Abe Allenberg for 
Warren Campaign for Governor 

Work sheets, prepared by Harold G. Robinson, asso- 
ciate counsel, showing contributions by S. & G. 
Syndicate to police and firemen's organizations 

Work sheets, prepared by Harold G. Robinson, asso- 
ciate counsel, showing payments made by S. & G. 
Syndicate for "regular" wire service 

Work sheets, prepared bj^ Harold G. Robinson, asso- 
ciate counsel, showing payments made by S. & G. 
Syndicate for "special" wire service 

Work sheets, prepared by Harold G. Robinson, asso- 
ciate counsel, showing gross receipts for S. & G. 
Syndicate 

List of original stockholders in Orange Park Kennel 
Club and Jacksonville Kennel Club; submitted by 
William H. Johnston 

First National Bank, Aberdeen, Md., deposit ticket, 
dated Apr. 6, 1945, of Tredick Ford, payment on 
mortgage, to the account of Mrs. — Mitchell, showing 
deposit of $2,000 

Ledger sheets, from First National Bank, Aberdeen, 
Md., of Mrs. May H. Ford and Tredick Ford, 
Aberdeen , Md 

Photostats of agreement of sale and deed, covering 204 
west Bel Air Avenue, Aberdeen, Md., signed by 
Ethel G. Sullivan and James Sullivan 

Photostats of three checks, signed by Thomas A. Rice, 
payable to the order of Gladvs F. Neu, in amounts 
of $5,000, $5,000, and $50, respectively 



293 

302 

303 

303 

304 

304 

304 

304 

304 

304 

304 

304 

306 
331 

484 
576 
595 
595 
595 
633 

690 
690 
704 
705 



0) 

782 

782 

783 

783 

784 

784 

785 

785 

786 

786 

787 

0) 
787-788 

(') 
788 
789 
790 
790 
791-792 

(0 

(') 

793-795 
796-797 



* Returned to witness. 
2 On file with committee. 



X CONTENTS 

SUPPLEMENTAL DATA 

Page 

Letter to Rudolph Halley, chief counsel, dated August 8, 1950, from Hon. 
Fuller Warren, Governor of the State of Florida, enclosing clipping from 
Fort Myer News-Press 798-801 

Letter to Rudolph Halley, chief counsel, dated August 8, 1950, from Hon. 
Fuller Warren, Governor of the State of Florida, enclosing ITebruary 18 
statement by Governor Warren 801-802 

Letter to Rudolph Halley, chief counsel, dated August 9, 1950, from Hon. 
Fuller Warren, Governor of the State of Florida, enclosing August 7 
order to sheriffs of Florida 802 

Letter to Rudolph Halley, chief counsel, dated August 14, 1950, from Hon. 
Fuller Warren, Governor of the State of Florida, enclosing February 21 
statement by Governor Warren 802-803 

Letter to Senator Kefauver, chairman, dated November 6, 1950, from Max 
Marmorstein, Cleveland, Ohio 803-805 



INVESTIGATION OF ORGANIZED CRIME IN INTERSTATE 

COMMERCE 



FRIDAY, MAY 26, 1950 

United States Senate, 
Special Committee To Investigate 
Organized Crime in Interstate Commerce, 

Miami^ Fla. 

The committee met in the courtroom of the United States district 
court, Miami, Fla., on May 26, 1950, Senator Estes Kefauver, chair- 
man, presiding. 

Present : Senators Kefauver and Hunt. 

Also present : Rudolph Halley, chief counsel. 

The Chairman. The committee will come to order. For the record 
this is the select committee of the United States Senate for the pur- 
pose of investigating interstate criminal transactions, appointed by 
the President of the Senate pursuant to Senate Resolution 202. 

Mr. Halley. As a courtesy to an attorney, Mr. Robert C. Ward, who 
represents Mr. Robert Parker, an employee of Charles B. Costar & Co., 
certified public accountants, let me state this for the record : A subpena 
has been served on ]Mr. Parker, but he claims that he cannot produce 
certain records in the absence of his employers. He is here with 
counsel and, since the next witness is going to take a considerable 
amount of time, I will ask the committee as a courtesy to listen to 
him now. 

The Chairman. All right. 

TESTIMONY OF ROBERT PARKER, ACCOMPANIED BY ROBERT C. 

WARD, ATTORNEY 

Mr. Halley. Will you state your name and address for the record, 
Mr. Parker? 

Mr. Parker. Robert Parker, office address 903 First National Bank 
Building, Miami, Fla. My home address is 2170 Northwest Fifty- 
eighth Street, Miami, Fla. 

JNIr. Halley. Mr. Ward, you are counsel for Mr. Parker? 

Mr. Ward. Yes, sir. 

Mr. Halley. What is your full name and address ? 

Mr. Ward. Robert C. Ward, 1229 du Pont Building, Miami, Fla. 

The Chairman. Do you solemnly swear that the testimony you will 
give this committee will be the truth, the whole truth, and nothing but 
the truth, so help you God ? 

Mr. Parker. I do. 



2 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Halley. Mr. Parker, you received a subpena to produce certain 
records. 

Mr. Parker. That is right. 

Mr. Halley. And they are records of Charles B. Costar & Co., certi- 
fied public accountants? 

Mr. Parker. Well, I don't know whether we have all of those records 
or not. 

Mr. Halley. Are you an employee of Charles B. Costar & Co. ? 

Mr. Parker. Yes. 

Mr. Halley. What is your position ? 

Mr. Parker. Well, I am more or less in charge in the absence of 
Mr. Costar. 

Mr. Halley. Are you in charge? 

Mr. Parker. I am in charge of the procedure of the work, with 
another man. 

Mr. Halley. Who is the other gentleman? 

Mr. Parker. Edward J. Diedriech. 

Mr. Halley. Is he a partner of Mr. Costar ? 

Mr. Parker. No. 

Mr. Halley. Is he associated with him? 

Mr. Parker. He is an employee, the same as I am. 

Mr. Halley. In their absence you are in charge ? 

Mr. Parker. That is right. 

Mr. Halley. You received a subpena to bring certain records ? 

Mr. Parker. That is right. 

INIr. Halley. Have you looked to see if those records are on the 
premises ? 

Mr. Parker. No, sir ; like I say, I am in charge of the way the flow 
of work goes on but I don't think I am in charge of the office to the 
extent that I could take any of the records off or put any back other 
than on a particular job. 

Mr. Halley. You received the subpena? 

Mr. Parker. Yes. 

Mr. Halley. Is there anything you would like to say about it, Mr. 
Ward? 

Mr. Ward. In the absence of Mr. Costar, as Mr. Parker stated, 
gentlemen, he is just an employee. Those records that you are after 
we are willing to give to the committee but until such time as Mr. 
Costar is back Mr. Parker, as he says, doesn't know where all of the 
records are or if we have them all. Mr. Costar is on his way down here 
from Washington at the present time, I believe. 

Mr. Halley. When will he arrive? 

Mr. Ward. His office doesn't know. He was in Johns Hopkins 
getting a physical check-up and he said he would be in Miami some- 
time this week end, and at that time we would be perfectly willing 
to produce the records. 

Mr. Halley. May I go off the record? 

The Chairman. Yes. 

(Discussion off record by permission of the chairman.) 

The Chairman. What is Charles B. Costar & Co., a partnership or 
corporation ? 

Mr. Parker. It is a partnership. There is no such thing as a cor- 
poration in the accounting business;, no more than there is in the law 
business. 



ORGANIZED CRIME IN INTERSTATE OOIVOIERCE 3 

The Chairmax. Are you the highest one in command in the absence 
of Mr. Cost ar? 

Mr. Parker. No; Mr. Diedriech is. 

The Chairman. Where is he ? 

Mr. Parker. He is out of the office and has been out of the office all 
day working. 

The Chairman. Is the subpena addressed to Mr. Diedriech too? 

Mr. Halley. Yes. but the office has been unable to produce him. Mr. 
Parker has been in charge and is the only one in the office today. 

The Chairman. You understand that it is not a matter of whether 
Mr. Costar is willing for the records to be produced. We have sub- 
penaed the records and if the records are there, we want them. 

Mr. Parker. Let me put it this way : It is not a matter of routine 
to me in the office if I do something I should not do. I have to work, 
you know. I don't believe it is within the realm of my job to do that^ 
otherwise I would be willing to do so. 

The Chairman. It is a subpena of the United States Senate that 
has been served on you. We do not want to give you any trouble, but 
this is a select committee of the Senate and we have a right to get 
those records. You are the man in charge of the office upon whom 
the subpena has been served, so it is not a question of whether Mr. 
Costar wants you to do it. Unless we can be assured that the records 
will be availal)le, I think we had better instruct Mr. Parker to have 
them here at 9 o'clock in the morning, subject to a citation of contempt 
b}^ tliis committee if he doesn't produce them. 

Mr. Parker. Suppose I find that instead of an armful we have a 
truckload of them, what assistance will I have in getting them over 
here? 

The Chairman. We will assist you in getting them over here. 

Mr. Ward. Will it be agreeable to have Mr. Parker check the rec- 
ords ? He doesn't know at the present time if the records or all of 
them are over there. 

Mr. Halley. The records are there. You are probably misin- 
formed. He advised our investigator what records are there, and 
we know what records are there. 

Mr. Parker. That is wrong. 

Mr. Halley. Mr. Parker so advised the man who served the sub- 
pena on him. I think now that you are simply delaying matters. The 
objection is not substantial at all. 

The Chairman. When was this subpena served upon you ? 

Mr. Parker. About 12 o'clock today. 

The Chairman. Have you made any effort to find the records? 

Mr. Parker. When they brought the subpena there I checked over 
the names with the secretary and she checked off the names of the 
ones which to her knowledge we never did any work for and that is 
what I informed the investigator, the nature of the records we had 
and which ones we had done no work for. 

Mr. Halley. The inference being that you had done work for 
others ? 

Mr. Parker. Yes, but that does not necessarily mean that w^e have 
any records. 

Mr. Halley. We are simply wasting time. Go back and check to 
see what you have and produce them pursuant to the committee's 
instructions. 



4 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Ward. At 9 o'clock? 

The Chairman. If you get them together in that time without any 
undue liardship. 

Mr. Ward. We can inform you in a little while as to just what is 
there. 

The Chairman. Suppose you let us know as soon as you can. As 
soon as Mr. Parker can find out just what he has got in the office, you 
can inform us over here. 

Mr. Parker. Let me explain one thing. When records get so old 
they are transferred to storage. As to those in storage, I don't have 
any idea what they would be. I don't think we can get them by 9 
o'clock. If they are 5 or 6 years old they go in storage. 

The Chairman. You can let us know what the situation is by 5 : 30 
today ? 

Mr. Parker. Yes; I can give you an idea of what we have in the 
office. 

The Chairman. We will expect to hear from you by 5 : 30 today. 
Thank 3^011. 

TESTIMONY OF BEN EISEN AND SEYMOUR EISEN 

Mr. Halley. Wliat is your name and address^ 

Mr. EisEN. Ben Eisen, 1308 Harrison Street, Hollywood, Fla. 

Mr. Halley. This gentleman is your brother? 

Mr. Ben Eisen. Yes, sir. 

Mr. Halley. State your name and address for the record. 

Mr. Seymour Eisen. jMy name is Seymour Eisen; my address is 
Hollywood, Fla. 

The Chairman. Do you and each of you solemnly swear that the 
testimony you will give this committee will be the truth, the whole 
truth, and nothing but the truth, so help you God? 

Mr. Ben Eisen. I do, 

Mr. Seymour Eisen. I do. 

Mr. Halley. Mr. Eisen, are you an accountant ? 

Mr. Ben Eisen. Yes, sir. 

Mr. Halley. Do you have a certified public accountant's license in 
the State of Florida ? 

Mr. Ben Eisen. No, sir. I have no firm at all. I have been here 
since 1934. 

Mr, Halley. You operate as an individual ? 

Mr. Ben Eisen. Yes, sir. 

Mr. Halley. Are you a certified public accountant ? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Where is your office ? 

Mr. Ben Eisen. I have no office. 

Mr. Halley. Where do you work? 

Mr. Ben Eisen. I worked at Gulfstream and the Hollywood Ken- 
nel Club. Since 1945 or 1946 I have practically divorced myself from 
much of the work at Greenacres, Boheine, and Colonial Inn and have 
given most of my time to Hollywood Inn and Gulfstream. 

JSIr. Halley. A subpeiui was served upon you today? 

Mr Ben Eisen. Yes. 

Mr. Halley. Pursuant to that subpena have you brought certain 
records here? 



ORGANIZED CR'IME IN INT-ERSTATE COMMERCE 5 

Mr. Ben Eisen. Yes. 

Mr. Halley. Would you care to produce those records and describe 
tliem '^ 

Mr. Ben Eisen. I have quite a few records, sir. 

Mr. Halley. What records have you brought? 

The Chairman. Let's get them up here and see what we have got. 

Mr. Ben Eisen. One of your men was up at the place and took 
whatever he thought that he wanted. If there is anything else he 
wants, he can come up and we will be glad to give him anything else 
he wants. 

Mr. Halley. Do you work with Mr. Ben Eisen? 

Mr. Seymour Eisen. Not under his .supervision. 

Mr. Halley. Do you work for the corporation ? 

Mr. Seymour Eisen. I work independently. 

Mr. Halley. In the same office? 

Mr. Seymour Eisen. No. I have no office. 

Mr. Halley. You also work at the Gulf stream Race Track? 

Mr. Seymour Eisen. I work at the Gulfstream Race Track as pay- 
roll clerk. 

Mv. Halley. Where else do you work ? 

Mr. Seymour Eisen. Club Boheme. I use the office of the Colonial. 

Mr. Halley. Do you use the office of Club Boheme, too? 

Mr. Seymour Eisen. No. It is not suitable. 

Mr. Halley. Will you go ahead and describe the books? 

Mr. Seymour Eisen. I have here the Greenacres Casino summary, 
1949-50 ; Greenacres 1950 payroll, Club Boheme 1950 payroll, Boheme 
Casino, 1948-49 and 1949-50 seasons; Greenacres cash book, 1949-50 
and Club Boheme cash book for 1948-49 and 1949-50. 

Mr. Halley. Mr. Chairman, I offer into evidence as exhibit Nos. 1 
through 6, respectively, the books that have just been produced. 

The Chairman. They will be accepted as exhibit Nos. 1 through 6 
and will be made a part of the record. 

(Greenacres Casino summary 1949-50, ledger, marked "Exhibit 1"; 
Greenacres payroll ledger, 1950, marked "Exhibit 2"; Club Boheme 
payroll ledger, 1950, marked "Exhibit 3" ; Boheme Casino 1948-49 and 
1949-50 seasons, ledger, marked "Exhibit 4"; Greenacres cash book, 
1949-50, marked "Exhibit 5"; and Club Boheme cash book, 1948-49 
and 1949-50, marked "Exhibit 6." Exhibits later returned to witness 
after analysis by committee.) 

Mr. Halley. Will you describe the nature of the business of the 
Club Boheme? 

The Chairman. Are these boys brothers ? 

Mr. Ben Eisen. Yes,. The Club Boheme is a restaurant and night 
club. 

Mr. Halley. Does it have any gambling operations ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. Will you describe the gambling operations there ? 

Mr. Ben Eisen. Well, I don't know how to begin. Can you ask 
specific questions ? 

Mr. Halley. Yes. Is there a crap game at the Club Boheme ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. Roulette wheels up there ? 

Mr. Ben Eisen. Yes. 



6 ORG'ANIZE'D CRIME IN INTEESTATE COOVEMER'CE 

Mr. Hallet. Are there various card games and games of chance 
operating there ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. What are the games of chance operated by Club 
Boheme ? 

Mr. Ben Eisen. That's all. 

Mr. Halley. Is tliere any horse-race betting at the Club Boheme ? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. The gambling takes place in rooms other than the, 
restaurant ; is that correct ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. In the restaurant there is music ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. And entertainment? 

Mr. Ben Eisen. Yes, sir. 

]VIr. Halley. In the form of a night club show ; is that right ? 

Mr. Ben Eisen. Yes, sir, 

Mr. Halley. Is the Club Boheme open to the public ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. Anyone can go to the Club Boheme and have dinner 
and see the show ; is that correct ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. And then can gain entrance to the other rooms in 
which they can gamble ? 

Mr. Ben Eisen. I don't know what the procedure is. I never was 
there to observe it. 

Mr. Halley. You have been there ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. The people could freely walk in and out of the gam- 
bling rooms ? 

Mr. Ben Eisen. Yes. 

]Mr. Halley. Where is the Club Boheme located ? 

Mr. Ben Eisen. It is located on Koute AlA, Hallandale, Fla. 

Mr. Halley. Do you have records indicating the ownership of the 
Club Boheme? 

Mr. Ben Eisen. Not in my possession. There are tax returns which 
would indicate that. 

Mr. Halley. Who prepared the tax returns? 

Mr. Ben Eisen. Well, the tax returns were prepared by — I sum- 
marized the figures and the tax returns were prepared by George 
Goldstein, a New Jersey accountant. 

Mr. Halley. Do you know Goldstein Bros. ? 

Mr. Ben Eisen. No, sir. They are in Newark, N. J. 

Mr. Halley. Is that Goldstein & Goldstein? 

Mr. Ben Eisen. I don't know. 

Mr. Halley. Do you have any records indicating the ownership of 
the Club Boheme? 

Mr. Ben Eisen. Not here. 

Mr. Halley. Do you have them in your ofRce or your home or at 
the Club Boheme? 

Mr. Ben Eisen. I reiterate that the ownership, as far as I know^ 
is what is on the tax returns themselves. There are no others. 

Ml'. Halley. Have you ever seen the tax returns? 

Mr. Ben Eisen. Yes. 



ORGANIZED CRIME IN INTE'RSTAT'E COMMERCIE 7 

Mr. Halley. Do you recall the ownership as shown on the tax 
returns ? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Where are the tax returns ? 

Mr. Seymour Eisen. I have them here. 

Mr. Halley. Can you produce them now ? 

Mr. Seymour Eisen. Yes. 

Mr. Ben Eisen. He don't know whether you mean the property 
itself or what. You see, sir, the property is owned by somebody else. 

Mr. Halley. You have just handed me a document which appears 
to be a copy of a partnership return of income for 1948 for the Club 
Boheme. I offer this into evidence. 

The Chairman. It will be received and made a part of the record 
as exhibit No. 7. 

(Copy of income-tax return of Club Boheme, 1948, marked "Exhibit 
No. 7," later returned to witness after analysis by committee.) 

Mr. Halley. Where did you get the information for this tax 
return ? 

Mr. Ben Eisen. The information was derived from the books and 
records of the Club Boheme. 

Mr. Halley. In your possession ? 

Mr. Ben Eisen. No, sir ; at the Club Boheme. 

Mr. Halley. Are they now at the Club Boheme? 

Mr. Ben Eisen. They are right here. 

Mr. Halley. This return shows certain names which I will recite 
for the record: Frank Shireman, Samuel L. Bratt, Claude Litteral, 
Meyer Lansky, Jack Lansky, and George Sadlo, which shows a total 
distribution there of $205,470.77. Can you explain the manner in 
which the distributive share of each of these persons was arrived at? 

Mr. Ben Eisen. Well, I could figure it out in a minute for you if 
you will give me a little time. I thought the percentages would be on 
here but I don't see them. 

Mr. Halley. Do you have any other records indicating the per- 
centage ownership of each of these individuals ? 

Mr. Ben Eisen. It should be in here. 

Mr. Halley. What other tax returns do you have here ? 

Mr. Ben Eisen. What tax returns do I have to give to you and what 
do you want ? 

Mr. Halley. We want all that you have. 

Mr. Ben Eisen. Shall I go back a distance? 

Mr. Halley. Yes. Go ahead and tell the committee what you have. 

Mr. Ben Eisen. Well, I have Mr. Lansky's tax returns that go all 
the way back as far as I can remember. Here they are. 

Mr. Halley. Thev are in a folder marked "Jack Lansky, Federal 
returns, 1936 to 1948"? 

Mr. Ben Eisen. 1949 is in there, too. 

Mr. Halley. I offer this entire folder in evidence as exhibit No. 8. 

The Chairman. It will be received in evidence as exhibit No. 8 
and made a part of the record. 

Mr. Halley. What other tax returns do you have? 

Mr. Ben Eisen. Can I ask you something off the record ? 

Mr. Halley. It will go on eventually even if you go off the record. 
We cannot make any commitments. 

68958 — 50 — pt. 1 2 



8 lORG'ANIZE'D CRIME IN INTERSTATE COMMERCE 

Mr. Ben Eisen. I am not asking for anything. All I want to know 
is to make sure that we will have these tax returns again so that I 
will be in a position to get the information for the next returns. 

The Chairman. That is assured. 

(Folder previously produced and admitted in evidence as exhibit 
No. 8 contains Jack Lansky Federal returns, 1936 to 1949, also Louisi- 
ana and New York returns, and was later returned to witness after 
analysis by committee.) 

Mr. Halley. The next exhibit offered is a folder of income-tax 
returns marked "George Sacllo," which folder is offered in evidence 
as exhibit No. 9. 

The Chairman. It will be received in evidence as exhibit No. 9 and 
made a part of the record. 

(Folder containing income-tax returns of George Sadlo marked 
"Exhibit No. 9." Later returned to witness after analysis by com- 
mittee. ) 

Mr, Halley. The next folder is marked "Income-tax returns of S. L. 
Bratt," which is offered into evidence as exhibit No. 10. 

The Chairivian. It will be received in evidence and made a part of 
the record as exhibit No. 10. 

(Said folder of income-tax returns of S. L. Bratt marked "Exhibit 
No. 10." Later returned to witness.) 

Mr. Halley. The next folder is marked "Income-tax returns of 
Vincent Alo," which is offered in evidence as exhibit No. 11. 

The Chairman. It will be received in evidence and made a part of 
the record as exhibit No. 11. 

(Said folder of income-tax returns of Vincent Alo marked "Exhibit 
No. 11." Later returned to witness.) 

Mr. Halley. The next is a folder containing tax returns of William 
and Ida Bischoff, which is offered in evidence as exhibit No. 12. 

The Chairman. It will be received as exhibit No. 12 and made a part 
of the record. 

(Said folder containing tax returns of William and Ida Bischoff 
marked "Exhibit No. 12." Later returned to witness.) 

Mr. Halley. The next folder is a folder containing income-tax 
returns of Colonial Inn, which is offered in evidence as exhibit No. 13. 

The Chairman. It will be received in evidence and made a part of 
the record as exhibit No. 13. 

(Said folder containing income-tax returns of Colonial Inn marked 
"Exhibit No. 13." Later returned to witness.) 

Mr. Halley. Mr. Ben Eisen, will you state what the Colonial 
Inn is? 

Mr. Ben Eisen. The Colonial Inn is Minsky's Burlesque now. 

Mr. Halley. Is it a place which is now used as a burlesque house ? 

Mr. Ben Eisen. Yes, sir. 

Mr. Halley. What was it formerly ? 

Mr. Ben Eisen. Niglit club and casino. 

Mr. Halley. Gambling casino? 

Mr. Ben Eisen. Yes. 

Mr. Halley. When did it cease to be a gambling casino and be- 
come a burlesque liouse? 

Mr. Ben Eisen. I believe the return you have there in your hand is 
the last one. 



ORGANIZED CRIME IN INTE'RSTAT'E COMMERCE 9 

Mr. Halley. By the return I hold in my hand you refer to the 1948 
return ? 

Mr. Bex Eisex. Yes, sir. 

Mr. Halley. Were the operations of the Colonial Inn transferred 
to some other place? 

Mr. Bex Eisex. To the Club Boheme. The same shareholders run 
the Club Boheme — not all the same but a majority of them. You can 
check the names on the 1948 return with those on the return of the 
Club Boheme, and you can probably see the name as shown. 

Mr. Halley. What is the Greenacres Club ? 

Mr. Bex Eisex. Restaurant and casino. 

Mr. HxVLLEY. Is Greenacres the same as the Colonial Inn ? 

Mr. Bex Eisex. No, sir. 

Mr. Halley. Is Greenacres still operating as a gambling casino 
and restaurant ? 

Mr. Bex Eisex. It is closed now. 

Mr. Halley. Was it operating during the past winter ? 

Mr. Bex Eisex. Yes, sir. 

Mr. Halley. Will you state whether or not you have here the in- 
come tax returns for Greenacres? 

Mr. Bex Eisex. Yes [produces returns]. The schedules are inside. 

Mr. Halley. You have handed me a folder of income tax returns 
for the Greenacres and William H. Bischolf, known as Greenacres 
Club. Are these all of the income tax returns for the Greenacres 
Club? 

Mr. Bex Eisex. Yes. 

Mr. Halley. I otfer them in evidence as exhibit Xo. 14. 

The Chairmax. The folder will be received in evidence and made 
a part of the record as exhibit No. 14. 

(Folder containing income tax returns of Greenacres and William 
H. Bischoff, trading as Greenacres Club, 1945 through 1949, marked 
"Exhibit No. 14." Later returned to witness.) 

yiv. Halley. Greenacres Club is located where ? 

Mr. Bex Eisex. In Broward County. I don't believe it is in any 
town. It is county "property."'' 

Mr. Halley. Broward County is the county immediately adjacent 
to the county in which Miami is located; is that right? 

Mr. Bex Eisex. That is right. 

Mr. Halley. Greenacres Club is a place which serves meals ? 

Mr. Bex Eisex. That is right. 

Mr. Halley. Does it also have entertainment ? 

Mr. Bex Eisex. No entertainment. 

Mr. Halley. Does it have gambling, card games, roulette, and so 
forth ? 

Mr. Bex Eisex. Yes. 

Mr. Halley. And what other games of chance, would you say ? 

Mr. Bkx Eisex. They had a wheel there. 
Mr. Halley. Roulette wheel ? 

Mr. Bfx Eisex. Not roulette. What do you call it ? It is called 
the Big Six wheel — that is what they call it. 
Mr. Halley. Does it have card games ? 
Mr Bex Eisex. I believe it has. 



10 lORG'ANIZE'D CRIME IN INTERSTATE COMMERCE 

Mr. Halley. Do you have the 1949 return for Greenacres? I see 
the last one here is 1948. 

Mr. Ben Eisen. No ; that year is not over yet. ^ 

Mr. Halley. You are on a fiscal year ending October 31, 1949? 

Mr. Ben Eisex. Right. 

Mr. Halley. This return shows the following as the owners of 
Greenacres Club : Greenacres 60 percent and W. H. Bischoff 40 per- 
cent. Is there a breakdown of the parties in interest of Greenacres ? 

Mr. Ben Eisen. I believe in this particular return the 60 percent of 
Greenacres is transferred over to Boheme and picked up in that return 
with all of the other partners. Do you want to check that now ? 

Mr. Halley. Yes ; we will do that now. 

Mr. Ben Eisen. Where is that return you just had ? 

Senator Hunt, It is on the bottom there. It is exhibit 8. 

Mr. Ben Eisen. It is picked up in the — the 60 percent was picked 
up over here. It was picked up in this income-tax return and you will 
probably see it when you check the record. 

Mr. Halley. Do you have the return for William H. Bischoff ? 

Mr, Ben Eisen, Yes, I just gave you the folder. Here it is — the 
Greenacres, the one that you just had in your hand. You see it right 
here, "income from partnership of Greenacres, $133,233.88." 

Mr. Halley. Will you look at the return for the Club Boheme ? Do 
you have that there ? 

Mr. Ben Eisen. You have it. 

Senator Hunt. It is Exhibit No. 8. 

Mr. Halley. I will now turn to the return for Colonial Inn. I note 
that among the owners of Colonial Inn in your previous year, 1947-48, 
there appeared F. Erickson, but he does not appear among the owners 
of the Club Boheme on the tax return. Do you know whether or 
not Frank Erickson had any beneficial interest in the Club Boheme? 

Mr. Ben Eisen. None that I know of. 

Mr. Halley. I notice that B. Briggs has 5 percent of Colonial Inn. 
Does B. Briggs have any beneficial interest in Club Boheme? 

Mr. Ben Eisen. Not that I know of. 

Mr. Halley. I notice that Joe Doto had 15 percent of the Colonial 
Inn. Do you know Joe Doto by another name? 

Mr. Ben Eisen. Yes. 

Mr. Halley. By wliat other name ? 

Mr. Ben Eisen. Joe Adonis. 

Mr. Halley. Does ,iop A donis by that name or any other name have 
any interest in the Club Boheme ? 

Mr. Ben Eisen. No. 

Mr, Halley, When the Colonial Inn was converted from a gambling 
casino to a burlesque house, were the accounts closed formally ? 

Mr. Ben Eisen. I believe they were. 

Mr, Halley, Did you handle that transaction? 

Mr, Ben Eisen. No, 

Mr. Halley. Who did? 

Mr. Ben Eisen. ISIr, Lansky, 

Mr, Halley, What accountant made up the account? 

Mr, Ben Eisen. We didn't have any. 

Mr. Halley. No accountants? 

Mr. Ben Eisen. No. 



ORGANIZED CRIME IN INTERSTATE COMIVIERCE 11 

Mr. Halley. Are you referring to Jack Lansky ? 
Mr. Ben Eisen. Yes, sir. 

Mr. Halley. Who gave Jack Lansky the figures with which to close 
the accounts for Colonial Inn ? 

Mr. Ben Eisen. He took the figures from the final report. 

Mr. Halley. You mean that you used the income-tax report as the 
final report ? 

Mr. Ben Eisen. Right. 

Mr. Halley. Was there a more full report given to the participants 
than the income-tax report? 

Mr. Ben Eisen. No. 

IVIr. Halley. Do you have possession of the canceled checks for the 
Colonial Inn ? 

Mr. Ben Eisen. Yes, sir. 

Mr. Halley. Do you have the final distribution that was made to 
the partners of Colonial Inn ? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Where are the books that were used for that final dis- 
tribution ? 

Mr. Ben Eisen. I don't believe that they were paid by checks. 

Mr. Halley. How were they paid ? 

Mr. Ben Eisen. In cash, I believe. 

Mr. Halley. How much cash was involved? 

Mr. Ben Eisen. I don't know. I w asn't at the closing, sir. 

Mr. Halley. You are an accountant. You certainly must be able 
to guess how much cash the Colonial Inn had at the end of business. 

Mr. Ben Eisen. The records will show that. 

Mr. Halley. Will you look at the records and tell me? 

Mr. Ben Eisen. I don't have the records here. 

Mr. Seymour Eisen. We brought the current stuff down first. Any- 
thing else we will produce,, if you need it. 

Mr. Halley. Can you produce the record of the Colonial Inn ? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. Will you produce that tomorrow morning at 9 o'clock ? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. Are you familiar with the records ? 

Mr. Seymour Eisen. Yes. 

Mr. Halley. Do you know how much cash was available for distri- 
bution at the time the Colonial Inn closed ? 

Mr. Seymour Eisen. No, sir. 

Mr. Ben Eisen. The records will show exactly what cash there was 
at the end of the period, because it is recorded in the records. Let me 
have one of those things there. It is copied right in here and also 
the money in the bank is there, so that woulcl be the cash at the 
end of the period. 

Mr. Halley. Where did you get your figures for the daily receipts 
of the Colonial Inn ? 

Mr. Ben Eisen. From the cash book. 

Mr. Halley. Who kept the cash book ? 

Mr. Ben Eisen. Seymour. 

Mr. Halley. Where did Seymour get the figures with which to keep 
the cash book ? 



12 ORGANIZED CKIIVIE IN INTERSTATE C'OMIMERCE 

Mr. Seymour Eisen. The cash book is a daily or monthly summary, 
however you want it, of the business transactions. It shows the dis- 
position of moneys put in the bank and pay-outs for expenses. 

Mr. Halley. Were you in charge of the bookkeeping operations of 
the Colonial Inn ? 

Mr. Seymour Eisex. Yes, sir. 

Mr. Halley. From day to day? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. Are you in charge of the day-to-day bookkeeping oper- 
ations at the Club Boheme? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. At the end of the day do you personally count the cash ? 

Mr. Seymour Eisen. No, sir. 

Mr. Halley. Who gives you the figures each day of cash receipts and 
cash disbursements? 

Mr. Seymour Eisen. The cash receipts in the restaurant are counted 
by me and are deposited in the bank by me. The cash distributions are 
recorded and checks are made periodically. 

Mr. Halley. Let's turn to the gambling casino. Who counts the 
cash receipts there? 

Mr. Seymour Eisen- I had nothing to do with that. 

Mr. Halley. Do the books reflect the profits of the gambling casino ? 

Mr. Seymour Eisen. Yes; there is a record kept of the gambling 
casino income. 

Mr. Halley. Daily ? 

Mr, Seymour Eisen. Daily. 

Mr. Halley. Do you keep that record ? 

Mr. Seymour Eisen. No. 

Mr. Halley. Who kept it ? 

Mr. Seymour Eisen. Mr, Lansky. 

Mr. Halley. Personally? 

Mr, Seymour Eisen, He submitted it to me at the end of the season 
and I analyzed it. 

Mr. Halley. "VYliat do you mean by analyzed it ? 

Mr. Seymour Eisen. I can show you better than I can explain it. 

Mr, Halley, Will you do that? 

Mr. Seymour Eisen, I will turn to the Boheme Casino, to the date 
January 3, 1950, This is the sheet that was handed to me at the end 
of the year and I summarized it and analyzed it. Now in this book 
here let's look for the date January 3, and it shows : "win $1,385 ; loss, 
$128 ; cigars, etc., $21.65." Now, sir, that is the extent of that day. 

Mr. Halley, Does that puiport to be a page covering that daj^'s 
operations ? 

Mr. Seymour Eisen, Yes. 

Mr. Halley. You don't receive these pages each daj' ; is that correct? 

Mr. Seymour Eisen, No, sir, 

Mr. Halley. Who handed vou these pages at the end of the season, 
the 1950 season ? 

Mr. Seymour Eisen. I don't remember what individual handed 
them to me ; I just got them and summarized them, 

Mr, Halley. You got them all in a batch ? 

Mr. Seymour Eisen. Yes, sir. 

Mr, Halley. Willyou search your memory and state to this com- 
mittee who handed you the batch of papers in this exhibit entitled 



ORG'AISriZED CE'IME IN ENPT'ERSTAT'E COMMEROE 13 

"Cash Receipts and Disbursements'" for the Club Boheme gambling 
operations ? 

Mr. Seymour Eisen. No one handed it to me. The only way it 
happens is this : I would go into the casino room at the cashier's table 
and that is where it was and I just took them. 

Mr. Halley. Some time ago you said that Mr. Lansky himself kept 
that record; is that correct? 

Mr. Seymour Eisen. As far as I know^; yes. 

Mr. Halley. Is that his handwriting? 

Mr. Seymour Eisen. I don't know. 

Mr. Halley. We are looking at page dated 1-3-50, which presum- 
ably means January 3, 1950. In the upper right-hand column there 
is shown a balance of $175,886.83. Do you recognize that hand- 
writing at all? 

Mr. Seymour Eisen. No, sir. 

Mr. Halley. Did you ever see anybody making these sheets out? 

Mr. Seymour Eisen. No, sir. 

Mr. Halley. Who told you these sheets existed? 

Mr. Seymour Eisen. Mr. Lansky had the records. 

Mr. Halley. Which Mr. Lansky? 

Mr. Seymour Eisen. Jack Lansky I am referring to, sir. 

Mr. Halley. What records does he have ? 

Mr. Seymour Eisen. He is in charge of all records, and I did the 
work for him as bookkeeper. 

Mr. Halley. At the end of each night's operations is the cash 
counted ? 

Mr. Seymour Eisen. May I explain something here. There are 
two divisions to this, the restaurant and the casino. I handled the 
restaurant. 

Mr. Halley. You count the cash each night at the restaurant? 

Mr. Seyiniour Eisen. Yes; and I make the deposits. 

Mr. Halley. You don't count the cash at the casino ? 

Mr. Seymour Eisen. I have nothing to do with that until the end 
of the year, when I put it in this book. 

Mr. Halley. Who counts the cash at the casino ? 

Mr. Seyjniour Eisen. I don't know, 

]Mr. Halley. You are there every night ? 

Mr. Seymour Eisen. I am there part of the night and during the 
day. 

Mr. Halley. You were there at the end of the night's operations 
in the dining room ? 

Mr. Seymour Eisen. Yes. 

Mr. Halley. Who is in charge of the casino ? 

Mr. Seymour Eisen. Mr. Lansky. 

Mr. Halley. Jack Lansky ? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. Is he there every night, substantially every night? 

INIr. Seymour Eisen. Yes. 

Mr. Halley. Do the books reflect the people employed in the casino ? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. What books reflect it ? 

Mr. Seymour Eisen. The payroll books. 

Mr. Halley. What exhibit is that ? 



l4 ORG'AXIZED CRIME IN INTERSTATE C'OIVEMERCE 

Mr. Seymour Eisen. I submitted them to you. 

Mr. Halley. They are in evidence? 

Mr. Seyimoue Eisen. Yes, sir. 

Mr. Ben Eisen. Can I help j^ou out a little ? 

Mr. Halley. Yes. 

Mr. Ben Eisen. I just want to explain something here. If my 
brother had to stay there every night and watch them count the money, 
he would be there until 5 or 6 o'clock in the morning, because these 
places don't close until very late, and the entire gambling casino is 
in charge of Mr. Lansky, in main control there, and he prepares his 
own summary that will be reflected in the books. At the end of the 
night I can probably tell you myself that after they close each table 
the take the money and put it in the cashier's cage and they count it 
down. 

Mr. Halley. Who counts it? 

Mr. Ben Eisen. Mr. Lansky. 

Mr. Halley. Personally? 

Mr. Ben Eisen. Yes ; or Mr. Sacllo, or whoever is there with him. 

Mr. Halley. One of the partners supervises it? 

Mr. Ben Eisen. Yes. One of the partners counts it and another 
partner checks it with him. In the casino they have a cashier at the 
cashier's cage where all of the "take" is taken, and those figures in all 
probability are the cashier's figures, and you can find out who he is 
by looking in the payroll book which reflects the cashier's crap men 
and everybody. 

Mr. Halley. It is your opinion that this handwriting here is the 
handwriting of the cashier ? 

Mr. Ben Eisen. That is right. It is not Jack Lansky's handwriting. 

Mr. Halley. You are familiar with the handwriting of Jack 
Lansky ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. Do you know the cashier's name? 

Mr. Ben Eisen. George Brown and Joseph Kirby. 

Mr. Halley. That is something that can be furnished later and at 
some length ? 

Mr. Ben Eisen. All right. 

Mr. Halley. Who runs the Greenacres' operations? 

Mr. Ben Eisen. Samuel L. Bratt. 

Mr. Halley. Is Edward G. Bischoff connected with Greenacres? 

Mr. Ben Eisen. Edward ? It is William. 

Mr. Halley. You have it William H. Bischoff here. 

Mr. Ben Eisen. That is right. 

Mr. Halley. Is he connected Avith Greenacres' operations? 

Mr. Ben Eisen. Yes. 

Mr, Halley. Who runs the big crap game at the Greenacres ? 

Mr. Ben Eisen. William H. Bischoff and Greenacres have a 60-40 
partnership. 

Mr. Halley. Who actually operates it, supervises the operations? 

Mr. Ben Eisen. Mr. Bischoff. 

Mr. Halley. Do you know a Mr. Joe Massei ? 

Mr. Ben Eisen. No. 

Mr. Halley. Did you ever hear of the name? 

Mr. Ben Eisen. In the papers ; yes. 



ORGANIZED CRIME IX IN'TERSTATE COREVIERCE 15 

Mr. Halley. Have you ever seen anybody by the name of Joe 
Massei ? 

Mr. Ben Eisen. Never saw liim. 

Mr, Hallet. Have you ever seen Joe Massei, Seymour? 
Mr. Seymour Eisen. No. 

Mr. Hali.ey. Have you ever heard of any connection with Green- 
aci'es or the Colonial Inn, either direct or indirect, by Joe Massei or 
have you seen any records indicating such participation? 
:Mr. Bex Eisen. No. 

IMr. Halley. "What other records do you have here ? 
Mr. Ben Eisen. These are the same thing — Greenacres. You will 
note that this Greenacres is operated in two sections; one is the 
restaurant and the other is the casino. One is the 60-40 ownership, 
this part over here, and I just pointed out to you the restaurant end, 
and this other one here is the gambling end. 

]\Ir. Halley. It is in the gambling that you have the 60-40 per- 
centage : is that right ? 

Mr. Ben Eisen. Let me illustrate. 

Mr. Halley. Go ahead. 

Mr. Ben Eisen, The Bischoff-Greenacres has the main game ; that 
is tlie big game, as they call it. Now the wheel and the Bix Six are 
run by the restaurant, and the restaurant takes that and puts it in its 
income along with the income from the food, drinks, and so forth. 

Mr. Halley. In other words, the tax returns in exhibit No. 14 reflect 
the income from the big game ? 

Mr. Ben Eisen. That is right. 

Mr. Halley. Do I understand correctly that the tax return that is 
filed each year for Greenacres and Bischoff is a tax return on one 
crap game ? 

Mr, Ben Eisen. That is right. 

Mr. Halley, Known colloquially as the big crap game ? 

Mr, Ben Eisen, Yes, sir. 

Mr. Halley. Which is run hj Bischoif ? 

Mr. Ben Eisen, Yes, sir. 

Mr. Halley, Isn't it a fact that Joe Massei has been interested in 
the big game, too ? 

Mr. Ben Eisen. Yes. 

Mr. Halley. Don't they call it the New York crap game, too ? 

Mr, Ben Etsen. Yes. 

Mr. Halley. There is other gambling at the Greenacres ? 

Mr. Ben Eisen, Yes, 

Mr, Halley, Is there another table where the stakes are smaller? 

Mr. Ben Eisen, Yes, 

Mr. Halley. Koulette wheels? 

Mr, Ben Eisen, Yes, 

Mr. Halley. A separate return is filed for the other gambling op- 
erations ? 

Mr. Ben Eisen. Only for the wheel and the restaurant, which is 
together. 

Mr. Halley. How about the smaller crap game ? 

Mr. Ben Eisen. That is taken into the big crap game, which han- 
dles the "craps." 

Mr. Halley. All of the crap games are reflected in the returns of 
the Greenacres-Bischoff combination, exhibit No. 14 ? 

Mr. Ben Eisen, That is right. 



16 ORGANIZED CRIME IN INTERSTATE COIMMERCE 

Mr. Halley. Now, you have produced here another batch of re- 
turns in a folder entitled "Greenacres Regular," which I will offer 
in evidence as exhibit No. 15. 

The Chairman. It will be received and made a part of the record 
as exhibit No. 15. 

(Said folder containing income-tax returns of Greenacres Club, for 
1944 through 1949, marked "Exhibit No. 15," returned to witness.) 

Mr. Halley. Will you describe the income that is indicated in these 
return constituting exhibit No. 15 ? 

Mr. Ben Eisen. I am giving you everything I have got, so you 
can have a little file about it. If it is not on top, then it is inside. 
This one here is for 1944. It should be in another folder here. 

Mr. Halley. Let's find it now. Let's make sure they are all in one 
folder, in one exhibit. 

Mr. Seymour Eisen. There is none for 1949-50 yet. 

Mr. Halley. How about 1948-49? 

Mr. Seymour Eisen. Here it is. 

Mr. Halley. You have handed me one ending October 31, 1949. 

Mr. Ben Eisen. It must be in here somewhere ; maybe it is mixed 
up in here somewhere here before 1949. See? This is the Bischoff 
one and this is the Greenacres. Is that right ? 

Mr. Halley. I don't know. You tell me. 

Mr. Ben Eisen. Yes, this is for Greenacres. Now you have them 
up to 1949. 

Mr. Halley. So we have exhibit Nos. 14 and 15 properly identified? 

Mr. Ben Eisen. Yes, sir. 

Mr. Halley. Exhibit No. 16, which is offered in evidence, is a part- 
nership return of income tax from January 17, 1946, to April 3, 1946, 
entitled "Frank Erickson, Bert Briggs, and Colonial Inn." 

The Chairman. It will be received in evidence and made a part 
of the record as exhibit No. 16. (Later returned to witness.) 

Mr. Halley. Let it be known that the business or profession is 
noted on the record as booking, too. 

The Chairman. It will be so noted. 

Mr. Ben Eisen. This money here is shown as income to the Colonial 
Inn, and then it is picked up in 

Mr. Halley. In other words, the income shown in exhibit No. 16 
is picked up in another return ? 

Mr. Ben Eisen. That is right. 

Mr. Halley. This holder is what ? 

Mr. Ben Eisen. This shows the ownership of the Colonial realty, 
the property. 

Mr. Halley. And in this folder is the return showing the property 
income ? 

Ml". Ben Eisen. Yes; and the sale of the property to Greenacres. 

Mr. Halley. I offer it in evidence. 

The Chairman. It will be received in evidence and made a part of 
the record as exhibit No. 17. 

(Said folder identified as above marked "Exhibit No. 17." Later 
returned to witness.) 

Mr. Halley. As a convenience to you these folders will be kept 
together. 

Mr. Ben Etsen. Thank you. 



ORGANIZED CRIME IN ENTE'RSTATE COMMERCE 17 

Mr. Halley. I would now like to go back to the cessation of the 
operations at Colonial Inn and the start of the operations at Club 
Bolieme. The Colonial Inn operated through 1948 ; is that right ? 
Mr. Ben Eisen. Yes, sir. 

Mr. Halley. And the very next year Club Boheme started ; is that 
right? 
Mr. Ben Eisen. Yes. 

Mr. Halley. According to your records and your testimony Frank 
Erickson and Bert Briggs no longer participate in the operations ; is 
that correct? 

Mr. Ben Eisen. In the Boheme? 

Mr. Halley. Yes. 

Mr. Ben Eisen. That is right. 

Mr. Halley. Can you explain the circumstances under which they 
dropped out of that operation ? 

Mr. Ben Eisen. I don't know. 

Mr. Halley. Have you ever done any accounting for Frank Erick- 
son? 

Mr. Ben Eisen. No. 

Mr. Halley. Have you ever done any personal accounting for 
Frank Erickson? 

Mr. Ben Eisen. Never. 

Mr. Halley. Do you do any personal accounting for Bert Briggs ? 

Mr. Ben Eisen. No. 

Mr. Halley. Have you ever ? 

Mr. Ben Eisen. No, sir; aside from giving them a statement at 
times of their booking, when he brought me the figures I made up a 
statement of the accounts and it reflected the profits, of which Colonial 
Inn received one-half, and I believe later on Boheme had an interest 
with him. 

Mr. Halley, Do you have any correspondence that you have brought 
with you with Erickson or Briggs ? 

Mr. Ben Eisen. No. I didn't keep any correspondence with them. 
The only thing I did was to answer a letter their accountant sent me, 
which I received around January sometime, and he was in an awful 
rush to get an idea of the share that Briggs or Erickson had, and I 
wrote him a letter and told him exactly what the figures showed, and 
told him that the tax returns would follow as soon as they were 
drawn up. 

Mr. Halley. Do you have a copy of the letter to which you refer? 

Mr. Ben Eisen. No. I don't keep them. 

Mr. Halley. You don't keep copies of letters ? 

Mr. Ben Eisen. No. I don't write many. 

Mr. Halley. What is that accountant's name ? 

Mr. Ben Eisen. Andy Pellino. 

Mr. Halley. "\Yliat is his address ? 

Mr. Ben Eisen. I believe it is Fifth Avenue, New York City. 

Mr. Halley. Do you recall in the year 1948 writing a letter to 
Andy Pellino about the income of Briggs and Erickson? 

Mr. Ben Eisen. Yes. 

Mr. Halley. And that was 2 years ago ? 

Mr. Ben Eisen. I believe it was. 

Mr. Halley. Wliy does that letter stand out in your memory ? 



18 ORGANIZED CRIME IN INTERSTATE CO]VIMERCE 

Mr. Ben Eisen. It could only be a schedule of what their share of 
the profits were from the Colonial Inn, if it was 1948, and also their 
share of the profits from the books, so that they could enter it on their 
returns. . 

Mr. Halley. What other letters did you write Andy Pellmo? Did 
you write him from time to time or just once? 

Mr. Ben Eisen. I don't believe I ever wrote more than two letters 
to him. 

Mr. Halley. In each case stating income ? 

Mr. Ben Eisen. Yes ; always income. They would ask me what it 
was and I would just answer his letter and sign it. 

Mr. Halley. You know Andy Pellino pretty well ? 

Mr. Ben Eisen. I have known him a long time but I never had any 
business with him except these two letters. 

Mr. Halley. What books did you refer to ? 

Mr. Ben Eisen. They had a book in the Hollywood Beach Hotel. 

Mr. Halley. What kind of a book ? 

Mr. Ben Eisen. Horse book. 

Mr. Halley. "Who ran it ? 

Mr. Ben Eisen. Bert Briggs. 

Mr. Halley. ^Vlio owned it? 

Mr. Ben Eisen. Bert Briggs, I suppose ; it was in his place. 

Mr. Halley. Did Frank Erickson have an interest in it? 

Mr. Ben Eisen. Yes. 

Mr, Halley. In what years did they have these books ? 

Mr. Ben Eisen. The books ran all through the Boheme or the Colo- 
nial Inn, we will say, because the income was picked up in both returns. 

Mr. Halley. You also know that Frank Erickson alone or with 
others has a gambling concession at the Boca Raton ? 

Mr. Ben Eisen. I don't know. 

Mr. Halley. Isn't it also a fact that Frank Erickson, without or 
with associates or partners, has a gambling concession or interest at 
the Roney-Plaza Hotel? 

Mr. Ben Eisen. I don't know. 

Mr. Halley. Do you know whether or not Frank Erickson has 
employees or agents accepting bets at the race tracks in and around 
Miami ? 

Mr. Ben Eisen. I don't know. 

Mr. Halley. Did you ever discuss with Erickson the reason why 
Erickson and Briggs did not participate in the Club Boheme? 

These questions are addressed also to your brother, Seymour Eisen. 
Do you know the answers to any of those questions ? 

Mr. Seymour Eisen. No, sir. 

Mr. Halley. Did Jack or Mever Lansky ever discuss with you, Sey- 
mour, the reasons why Frank Erickson don't participate in the Club 
Boheme? 

Mr. Seymour Eisen. No ; they never talked or discussed that with 
me at all. 

(Recess.) 

Mr. Halley. Was there a horse book at Colonial Inn ? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Or at Greenacres? 

Mr. Ben Eisen. No. 



ORGANIZED CRIME IN INTERSTAT'E COMMERCE 19 

Mr. Halley. Or Club Bolieme ? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Are your answers to the questions the same ? 

Mr. Seymour Eisen. Yes, sir. 

Mr. Halley. Was there ever a horse wire in any of those chibs? 

Mr. Ben Eisen. No, sir. 

Mr. Seymour Eisen. I never saw none. 

Mr. Halley. Did they have a ticker service at any of these places ? 

Mr. Ben Eisen. None of those places. 

Mr. Halley. Did you ever hear of a place called the Farm Casino ? 

Mr. Ben Eisen. Where ? 

Mr. Halley. F-a-r-m Casino, in Broward County. 

Mr. Ben Eisen. That is the farm. There hasn't been any gambling 
there in years. 

Mr. Halley. Was there once gambling at the farm ? 

Mr. Ben Eisen. Yes. They were enjoined a long time ago; long 
before the Colonial Inn. 

Mr. Halley. Who owns the farm ? 

Mr. Ben Eisen. The farm was owned by Jack Lansky. 

Mr. Halley. Did Frank Erickson have a part of it? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. I would like to turn to the rest of the reports and 
get them into evidence. 

Exhibit No. 18 is a folder containing statements of restaurant 
charges for Club Boheme to customers for February 1950. 

(Folder of statements of restaurant charges for Club Boheme to 
customers for February 1950 received in evidence as exhibit No. 18. 
Later returned to witness.) 

Mr. Halley. Next is a folder containing unpaid bills of Club 
Boheme. 

(Folder of unpaid bills for Club Boheme received in evidence, 
marked "Exhibit No. 19." Later returned to witness.) 

INIr. Sey^iour Eisen. Here is a miscellaneous checking account. 

Mr. Halley. We want to get all of your vouchers and checks to- 
gether. You have a box of vouchers. 

Mr. Seymour Eisen. This is the Greenacres checking account. 
There are others which I haven't got here. 

Mr. Halley. As exhibit No. 20, I offer a box containing canceled 
checks of Club Boheme. 

( Checks Nos. 1 through 1822 on First National Bank of Hollywood, 
Fla., received in evidence as exhibit No. 20. Later returned to wit- 
ness.) 

Mr. Halley. Mr. Eisen, will you state whether exhibit No. 20 con- 
tains all of the canceled vouchers and bank statements of Club 
Boheme in your possession? 

Mr. Seymour Eisex. I don't know what is here, sir. I would have 
to look to see what is in here. 

Mr. Halley. Would you rather I put it this way : Do you know of 
any that you have that are not in this box ? 

Mr. Seymor Eisen. There are other records around, but I don't 
know which records. I will bring them up, as we told JNIr. Rice, any- 
time he M'ants it. 

Mr. Ben Eisen. We were in such a hurry to get down here. We ^r* 
together whatever was there and brought it down. 



20 ORGANIZED CKIME IN INTERSTATE COMAIERCE 

Mr. Halley. If Mr. Rice visits the office, where are they located ? 

Mr, Seymour Eisen. Right now everything is at the farm in Hal- 
landale. 

Mr. Halley. If Mr. Rice visits the farm during sometime next 
week, will you coo])erate and give him .any other records he needs? 

Mr. Ben Elsen. Yes, sir. 

Mr. Seymour Eisen. All the records that he wants ; all the records 
I have. 

Mr. Halley. Do you have any canceled checks for the Greenacres? 

Mr. Seymour Eisen. There is a box of them. 

Mr. Halley. Here is a box of canceled checks and bank statements 
for Greenacres, which I offer in evidence as exhibit No. 21. 

The Chairman. It will be received and made a part of the record. 

(Box of bank statements and canceled checks of Greenacres 
Restaurant received in evidence as exhibit No. 21. Later returned to 
witness.) 

Mr. Seymour Eisen. I have a group of duplicating deposit slips for 
Greenacres and Club Boheme. That is what it amounts to. 

Mr. Halley. How many books of deposit slips are there? 

Mr. Seymour Eisen. Six. 

Mr. Halley. I offer the entire six as one exhibit, exhibit No. 22. 

The Chairman. Let it be received and made a part of the record. 

(Six books of deposit slips for Greenacres and Club Boheme received 
in evidence as exliibit No. 22. Later returned to witness.) 

Mr. Halley. A batch of some canceled checks and bank statements 
of the Club Boheme and payroll-tax account are offered in evidence as 
exhibit No. 23. 

The Chairman. It is received and made a part of the record. 

(Canceled checks and bank statement of Club Boheme and payroll- 
tax account received in evidence as exhibit No. 23. Later returned to 
witness.) 

Mr. Seymour Eisen. Here are three checkbooks and two check-stub 
records of both the Club Boheme and Greenacres. 

Mr. Halley. I offer them all in evidence as exhibit No. 24. 

The Chairman. It will be made a part of the record. 

(Three checkbooks and two check-stub records of Club Boheme and 
Greenacres received in evidence as exhibit No. 24. Later returned to 
witness. ) 

Mr. Halley. A folder of miscellaneous papers, correspondence, etc. 

Mr. Ben Eisen. That was just laying on the talde. 

Mr. Halley. It is offered in evidence as exhibit No. 25. 

The Chairman. It will be received and made a part of the record. 

(Folder of miscellaneous papers of Samuel L. Bratt, Club Green- 
acres, the farm. Club Boheme, received in evidence as exhibit No. 25. 
Later returned to witness. ) 

Mr. Seymoltr Eisen. Here are some Greenacres paid and unpaid 
bills that go with that. 

Mr. Halley, What do you have next? 

Mr. Seymour Eisen. Sales-tax reports, State of Florida, 

Mr. Halley. For what? Greenacres Restaurant? 

Mr. Seymour Eisen. Yes. 

Mr. Halley. I offer it in evidence as exhibit No. 2G. 

The Chairman. It will be received and made a part of the record. 



ORGANIZED CRIME IN INTE'RSTAT'E COMMERCE 21 

(Sales-tax reports, State of Florida, Greenacres Restaurant, 
received in evidence as exhibit No. 26. Later returned to witness.) 

Mr. Halley. We will add to exhibit No. 24 one other check-stub 
book. 

The Chairman. It is so ordered. 

Mr. Seymour Eisen. Other accounts receivable. 

Mr. Halley. Accounts receivable and paid for Club Boheme? 

Mr. Seymoltr Eisen. Yes, Club Boheme, 1948-49 season. 

Mr. Halley. Offered in evidence as exhibit No. 27. 

The Chairman. It will be received and made a part of the record. 

(Accounts receivable and paid. Club Boheme, 1948-49 season, re- 
ceived in evidence as exhibit No. 27. Later returned to witness.) 

Mr. Halley. The current checkbook of Club Boheme is offered 
in evidence as a separate exhibit, No. 28. 

The Chairman. It will be received and made a part of the record. 

(Current checkbook for Club Boheme received in evidence as exhibit 
No. 28. Later returned to witness.) 

Mr. Halley. A batch of seven folders on payroll taxes is offered as 
exhibit No. 29, identified as follows: 29-A, the farm; 29-B, Colonial 
Inn; 29-C, Greenacres and Bishop; 29-D, Greenacres; 29-E, George 
Scherman et al. ; 29-F Club Boheme; 29-G, combination Greenacres 
and Bishop. 

The Chairman. Let them be received and made a part of the record. 

(Seven folders on payroll taxes, marked "Exhibit Nos. 29-A 
through 29-G, inclusive, received in evidence. Later returned to 
witness. ) 

Mr. Seymour Eisen. Sales-tax reports, cabaret-tax reports, and 
bank statements. Club Boheme. 

Mr. Halley. The folders so described are offered as exhibit No. 30. 

The Chairman. It will be made a part of the record. 

(Sales-tax reports, cabaret-tax reports, and bank statements, Club 
Boheme, received in evidence as exhibit No. 30. Later returned to 
witness.) 

Mr. Halley. Two folders as previously described by the witness as 
accident reports, offered as exhibit Nos. 31-A and 31-B. 

The Chairman. Let them be received and made a part of the record. 

(Accident reports. Club Boheme, received in evidence as exhibit 
Nos. 31-A and 31-B. Later returned to witness.) 

Mr. Halley. The lease on Club Boheme is offered as exhibit No. 32. 

The Chairman. It will be received and made a part of the record. 

(Lease on Club Boheme received in evidence as exhibit No. 32. 
Later returned to witness.) 

Mr. Halley. Contribution folder, Club Boheme, and charities, etc., 
is offered as exhibit No. 33. 

The Chairman. It will be received and made a part of the record. 

(Contribution folder. Club Boheme, and charities received in evi- 
dence as exhibit No. 33. Later returned to witness.) 

Mr. Halley. A folder of realty leases for the Colonial Inn, offered 
as exhibit No. 34. 

The Chairman. Let it be received and made a part of the record. 

(Folder of realty leases for Colonial Inn received in evidence as 
exhibit No. 34. Later returned to witness.) 

Mr. Halley. A folder entitled "Show Contracts"' for the Club Bo- 
heme is offered in evidence as exhibit No. 35. 



22 ORGAXIZED CRIME IN INTERSTATE COMMERCE 

The CiiAiRMAx. Let it be received and made part of tlie record. 

(Folder entitled "Show Contracts" received in evidence as exhibit 
No. 35. Later returned to witness.) i ^ , • i 

Mr. Halley. Miscellaneous correspondence folder for the Colonial 
Inn is offered as exhibit No. 36. 

The Chairman. Let it be received and made a part of the record. 

(Miscellaneous correspondence folder for Colonial Inn received in 
evidence as exhibit No. 36. Later returned to witness.) 

Mr. Halley. Cabaret-tax folder for the Colonial Inn is offered as 
exhibit No. 37.) 

The Chairman. Let it be received and made a part ot the record. 

(Cabaret-tax folder for Colonial Inn received in evidence as ex- 
hibit No. 37. Later returned to witness.) 

Mr. Halley. Minute book for Bouche's La Boheme, Inc., is offered 
exhibit No. 38. 

The Chairman. It will be received and made a part of the record. 

(Minute book for Bouche's La Boheme Inc., received in evidence as 
exhibit No. 38. Later returned to witness.) 

Mr. Halley. Wliat is Bouche's La Boheme? 

Mr. Seymour Eisen. It is now the property of Club Boheme. 

Mr. Halley. Just what is it? Wliat is this. corporation; do you 
know? 

Mr. Seyiniour Eisen. I do not. 

Mr. Halley. Is it a building? 

Mr. Seymour Eisen. I don't know. I had nothing ever to do with 
it. These are the reports we inherited in cleaning up. 

Mr. Halley. One folder of miscellaneous papers offered in evidence 
as exhibit No. 39. 

The Chairman. Let it be received and made a part of the record. 

(Exhibit No. 39 contains the following: Stock certificates for 
Bouche's La Boheme, Inc., and book of blank stock certificates; agree- 
ment dated January 9, 1947, between Richard Melvin of Miami and 
Hy Ginnis of Chicago, pertaining to Club Boheme; inventory of Club 
Boheme and various legal documents re Club Boheme, the Hampshire 
Corp., Hy Ginnis, Albert Bouche, Edna Bouche, and Noel Montfiori ; 
bank statement and canceled checks re Greenacres, Club Boheme tax 
account and Club Boheme cabaret account. Later returned to wit- 
ness.) 

The Chairman. Let the record show that the committee will work 
in cooperation with you, and that Seymour Eisen says anything he 
can do he will do, and that the representatives of the committee may 
see any bills or any current reports that they need to see. 

Mr.' Halley. Mr. Ben Eisen, returning to the exhibit which is the 
cash receipts and disbursements on the gambling at Colonial Inn — is 
this La Bolieme — Club Boheme — I think you identified the hand- 
writing on the individual sheets and I think we were talking about a 
sheet dated January 3, 1950, so I will turn to that again. Is that the 
signature of the cashier? 

Mr. Ben Eisen. That is riglit. 

Mr. Halley. Do you remember the name of the cashier? 

Mr. Ben Eisen. I will give you the cashier's name. His name is 
Joe Kirby. 

Mr. Halley. Will you spell that? 

Mr. Ben Eisen. K-i-r-b-y. And George Brown. 



ORGANIZED CRIME IN ESTTERSTTAT'E COMMERCE 23 

Mr. Halley. Wliicli one's is that handwriting? 

Mr. Bex Eisen. I don't know ; either one. Tliey have ahnost the 
same handwriting. If yon look tlirongh here, they are pretty close. 
I don't know. This might be George Brown and that might be Joe 
Kirby. 

Mr. Halley. Where are they? 

Mr. Ben Eisex. They are here. One is here. 

Mr. Halley. Which one is here ? 

Mr. Ben Eisen. Kirby is here. 

Mr. Halley. Where is he ? 

Mr. Ben Eisen. Living in Hollywood. 

Mr. Halley. Do you know his address? 

Mr. Ben Eisen. No; I don't know his address, but I think the 
records will show it. 

Mr. Halley. Where is Brown? 

Mr. Ben Eisen. Brown just finished working at the art gallery 
and he went up to New York. They are up on a buying trip. He will 
probably be back soon. 

Mr. Halley. I don't want to seem to pry, but it seems to me there 
might be a few more papers in this brief case. 

Mr. Ben Eisen. They are mine, unless you want those blanks. 

Mr. Halley. Not relating to these clients? 

Mr. Ben Eisen. You can look at them if you like. 

Mr. Halley. No ; you are testifying under oath. 

Mr. Chairman, I respectfully suggest that the witness be excused for 
the present and that the subpena be adjourned sine die subject to 
recall by the committee at such time as the committee sees fit. 

The Chairman. That will be clone, but before we do that, perhaps 
Senator Hunt may have a few questions he wishes to ask. 

Senator Hunt. No ; I haven't any. 

The Chairman. I have one or two that I would like to ask. 

You referred to Bobo, I believe, as Joe Adonis. Was that you that 
did that ? 

Mr. Ben Eisen. Yes, sir. 

The Chairman. Do you know Joe Adonis? 

Mr. Ben Eisen. Yes, sir. 

The Chairman. How come he was called "Bobo"? 

Mr. Ben Eisen. I believe "Joe Doto," sir, was his right name. 

The Chairman. Joe Doto ? 

Mr. Ben Eisen. His nickname is "Adonis," as far as I know. 

The Chairman. Is he carried on all of these books as Joe Doto 
rather than Joe Adonis ? 

Mr. Ben Eisen. That is right. 

The Chairman. Does the record show what interest Joe Doto or 
Joe Adonis has now in Club Boheme or any of these clubs that we have 
been talking about ? 

Mr. Ben Eisen. Yes, sir; the record shows it. 

Mr. Halley. When did you last see Joe Adonis or Joe Doto? 

Mr. Ben Eisen. I don't think I saw him this year at all. I saw him 
last year. 

The Chairman. Are any other people carried on here by any other 
than the names by which we know them? Frank Costello, for in- 
stance — does he have some other name? 

Mr. Ben Eisen. No. 

68958— 50— pt. 1 — —3 



24 ORGANIZED CRIME IN rNTT-ERSTATE COMMERCE 

Tlie Chairman. Or Frank Erickson ? 

Mr. Ben Eisen. No. 

The Chairman. There is one point I didn't understand and that 
was your statement that when a dividend was made at the end of the 
season, when the various interests were paid off, you didn't have any 
record to show me how much they were paid ; is that correct ? 

Mr. Ben Eisen. No; I just said that the — I wasn't there when any 
dividends were paid. 

The Chairman. You said they were paid in cash ? 

Mr. Ben Eisen. That is right. 

The Chairman. Who did the paying? 

Mr. Ben Eisen. Mr. Lansky. 

The Chairman. Do you know why they were paid in cash rather 
than by check? 

Mr. Ben Eisen. No, sir. 

The Chairman. Don't you have any idea? 

Mr. Ben Eisen. It seems to have been the custom. 

The Chairman. Tliere was a 

Mr. Ben Eisen. They paid that way all the time. I never ques- 
tioned why they didn't pay in checks or why they paid in cash. 

The Chairman. The money was kept in a bank, wasn't it? 

Mr. Ben Eisen. Yes, sir. 

The Chairman. Who would draw the money out of the bank? 

Mr. Ben Eisen. Mr. Lansky. 

The Chairman. And they got the cash ? 

Mr. Ben Eisen. Yes, sir. It could also have been left in the bank- 
roll ; the bankroll cash that they used daily. 

The Chairman. Did they have a safety-deposit box ? 

Mr. Ben Eisen. Yes, sir. 

The Chairman. Where was that box ? 

Mr. Ben Eisen. At the Club Boheme. 

The Chairman. How about in one of the banks? 

Mr. Ben Eisen. I don't know. 

The Chairman. Do you know, Seymour? 

Mr. Seymour Eisen. No, sir. 

The Chairman. Were you ever there, Ben, when a dividend was 
paid in cash ? 

Mr. Ben Eisen. No, sir. 

The Chairman. Were you, Seymour? 

Mr. Seymour Eisen. No, sir. 

The Chairman. Do you know why it was paid in cash rather than 
being paid by check? 

Mr. Seymoitr Eisen. I don't know, sir. 

Mr. Ben Eisen. We have never been out there — I have never been 
and I know Seymour hasn't been — whenever they closed. 

The Chairman. Why would anyone pay in cash rather than by 
check? The money was kept in the bank, wasn't it, deposited in the 
bank? 

Mr. Ben Eisen. No, sir. 

The Chairman. Tlioy had no bank deposits? 

Ml'. Ben Eisen. Yes, but all the money wasn't deposited. The 
bankroll was always kept in cash at the casino. The only deposit 
they made would be for- — if somebody y)aid them by check and they 
deposited that money in the bank, then draw it out and they would 



ORGANIZED CRIME IN INTERSTATE COMMERCE 25 

Still have that in the bankroll all the time. When the restaurant 
needed any money, they would draw a check from the casino and 
deposit it in the restaurant account. 

The CFrAiioiAx. What percentage of the money taken in in the 
joint o])eration would you say was deposited in the bank? 

Mr. Ben Eksen. That is hard to figure, sir. 

The Chairman. What is your best guess ; about ? 

Mr. Ben Eisen. It seems to me like the amount of money in the 
bank was never very much, because the restaurant was always short of 
money. The restaurant actually lost money every time they operated. 
Seymour could ])robably give you a little more information. 

The CiiAiK.ArAN. What is your information, Seymour'^ 

J\Ir. Seymour Eisen. All the money of the restaurant is deposited 
in tlie bank daily. The money from the casino I don't know about. 

The Chairman. The record shows here that on some days the 
Casino won a net of more than $1,000. Would that money all be kept 
together until the end of the season? 

Mr. Seymour Eisen. It could possibly be. 

The Chairman. Do you know whether it was or not ? 

Mr. Seymour Eisen. No, sir. 

The Chairman. Who would have kept the money? 

Mr. Seymour Eisen. Mr. Lansky. 

The Chairman. Did he have a safe at the Casino ? 

INIr. Seymour Eisen. There is a safe at the Casino. 

The Chairman. Were you ever present when a dividend was paid 
at the end of the season ? 

Mr. Seymour Eisen. No, sir. 

The Chairman. Senator Plunt? 

Senator Hunt. For the record I think it ought to be clear that if 
you refer to the bank, you don't mean tlie commercial bank; you 
mean the bank at the Casino? 

Mr. Ben Eisen. No, sir. All the restaurant money was deposited 
in the bank account in the bank. 

Senator Hunt. But the money from the Casino was not? 

Mr. Ben P^isen. No, sir. 

Senator Hunt. You have been referring always to the bank as the 
bank of the casino, haven't you ? You used the term meaning — — 

Mr. Ben Eisen. Bankroll. 

Senator Hunt. Meaning a bankroll? 

Mr. Ben Eisen. Yes, sir. 

Senator Hunt. I see. 

The Chairman. Ben and Seymour, you w^ill be 

Mr. H ALLEY. There is just one other line of questioning that was- 
called to my attention. 

You also do the accounting, do you not, Ben, for the Hollywood 
Kennel Club? 

Mr. Ben Eisen. I am comptroller there. I am not the accountant. 
We have the accountant come in at the end of the season and make up 
the report for the State and for the income tax. 

Mr. Halley. You haven't yet given us those records for the Holly- 
wood Kennel Club. 

Mr. Ben Eisen. No, I didn't bring any records for the Hollywood 
Kennel Club, but I will be glad to. 

Mr. Halley. You will give them to us ? 



26 'ORGANIZED CRIME IN INTERSTAT'E COMMERCE 

Mr. Ben Eisen. Whatever you want, I will be glad to have you 
come up and check it. 

Mr. Halley. Does Mr. Erickson own any part of the Hollywood 
Kennel Club? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. None whatsoever? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Does Mr. Briggs? 

Mr. Ben Eisen. No, sir. 

Mr. Halley. Do you know whether or not Joe Adonis is related to 
Costello? 

Mr. Ben Eisen. Only from the paper I know he is a nephew. 

Mr. Halley. Joe Adonis is Costello's nephew ; is that right ? 

Mr. Ben Eisen, Yes. 

The Chairman. Did you ask whether Frank Erickson owns any 
part of the Kennel Club ? 

Mr. Ben Eisen. Yes, sir ; he doesn't. 

The Chairman. The record will show who owns it. 

Mr. Ben Eisen. Yes, sir. 

The Chairman. How many owners are there? 

Mr. Ben Eisen. There are, I believe, six shareholders. 

The Chairman. Can you tell us who they are? 

Mr. Ben Eisen. Yes, sir. William J. Sims, Sr. ; William J. Sims, 
Jr. ; Florence Strong; Lee McKichie ; Mrs. Barbara Roberts ; and there 
is an old lady from Long Island who has about nine shares. I just 
can't think of her name right now, but I will have it for you when you 
need it. 

There are 661 shares in the Hollywood Kennel Club. 

The Chairman. Is there anything further, Mr. Halley ? 

Mr. Halley. Yes, sir; are there any wire-service outlets at the 
farm ? 

Mr. Ben Eisen. I don't know, sir. 

Mr. Halley. Don't you operate at the farm ? 

Mr. Ben Eisen. No, sir; there is nothing operating at the farm. 

Mr. Halley. Don't you keep the books there? 

Mr. Ben Eisen. We just put them over there for storage. After 
giving up the Club Boheme lease, they took all the stuff out. 

Mr. Halley. Is it possible that a wire service could be operating 
there without your knowledge? 

Mr. Ben Eisen. Sure. 

Mr. Halley. Seymour, do you know whether or not a wire service 
operates at the farm? 

Mr. Seymour Eisen. I don't know of any wire service at the farm, 
sir. 

Mr. Halley. Thank you. That is all. 

The subj)enas lliut have been served upon you, Ben and Seymour, 
are continuous in etl'ect subject to further order of the committee. 

Mr. Ben Eisen. Right. Is there anything else this afternoon? 

Mr. Hai>ley. We have some more witnesses. 

TESTIMONY OF MRS. HAZEL HIBBS 

Mr. Hai,ley. Will you state your name? 

Mrs. Hii5BS. Mrs. Hibbs; Hazel Hibbs; H-i-b-b-s. 



ORGANIZED CKIME IN EVTERSTAT'E COMMERCE 27 

Mr. Hallet. What is your address, Mrs. Hibbs ? 

Mrs. Hibbs. 246 Northwest Thirty-first Street. 

Mr. Halley. Miami ? 

Mrs. Hibbs. Miami. 

The Chairman. Mrs. Hibbs, under the rules of the committee, all 
witnesses have to be sworn. AVill you rise ? 

Do you solemnly swear that the testimony you are about to give 
the committee will be the truth, the whole truth and nothing but the 
truth, so help you God ? 

Mrs. Hibbs. I do. 

Mr. Halley. IVIrs. Hibbs, will you tell us where you are employed 'i 

Mrs. PIiBBs. I w^ork for Louis" Gillman, Certified Public Account- 
ant. 

Mr. Halley. Louis Gillman ; G-i-1-l-m-a-n ? 

Mrs. Hibbs. That is right. 

Mr. Halley. Where is Air. Gillin'm's ofiice located? 

Mrs. Hibbs. 1224 Ingraham Building. 

Mr. Halley. Miami ? 

Mrs. Hibbs. Miami. 

]\fr. Halley. Do you know whether or not Mr. Gillman does the 
accounting work for a firm known as the S & G Investment Co.? 

Mrs. Hibbs. I have never seen anything on it. 

Mr. Halley. Have you ever seen anything on the S & G Syndi- 
cate ? 

Mrs. Hibbs. No, I haven't. 

Mr. Halley. Do you know where Mr. Gillman is? 

Mrs. Hibbs. He went to Cuba today with the Shrine convention. 

Mr. Halley. Is he expected back ? 

Mrs. Hibbs. He will be back Monday. 

Mr. Halley. Will you state where he lives ? 

Mrs. Hibbs. I think the address is 427 Northeast Twenty-sixth 
Street ; I believe that is right. 

JVIr. Halley. In Miami ? 

Mrs. Hibbs. In Miami. 

Mr. Halley. How long have you worked for Mr. Gillman? 

Mrs. Hibbs. About 8 years. 

Mr. Halley. In what capacity ? 

Mrs. Hibbs. As his secretary. 

Mr. Halley. How many people are in Mr. Gillman's office ? 

Mrs. Hibbs. At the present time I believe are two young ladies 
and about four boys ; about six people, you might say. 

Mr. Halley. What are the functions and duties of each of the young 
ladies ? 

Mi's. Hibbs. They are typists. 

Mr. Halley. Are they subordinate to you ? 

Mrs. Hibbs. Yes, sir. 

Mr. Halley. And the boys do what? 

Mrs. Hibbs. The boys are auditors. 

Mr. Halley. Do they work directly under Mr. Gillman? 

Mrs. Hibbs. Yes, sir. 

Mr. Halley. Are you generally familiar with Mr. Gillman's ac- 
counts. 

Mrs. Hibbs. I know what accounts he has and audits. 



28 ORGAlSriZED CRIIME IN INTERSTATE COMMERCE 

Mr. Halley. Have you ever heard of Mr. Harry Russell ? 

Mrs. HiBBS. No, I haven't. 

Mr. Halley. Have you ever heard of Mr. Harold Salvey ? 

Mrs. HiBBS. No, I haven't. 

Mr. Halley. Mr. Charles Friedman? 

Mrs. HiBBS. No ; I don't. 

Mr. Halley. Mr. Jules Levitt ? 

Mrs. Hibbs. No ; I never heard of him. 

Mr. Halley. Samuel P. Cohen ? 

Mrs. Hibbs. Yes, I have. 

Mr. Halley. You have heard of Mr. Samuel P. Cohen ? 

Mrs. Hibbs. Yes, sir. 

Mr. Halley. Is he a client or customer of Mr. Gillman's? 

Mi-s. Hibbs. I believe he is a brother-in-law of Mr. Gillman's. I 
think that is the relationship. 

Mr. Halley. In what business is Mr. Cohen ? 

Mrs. Hibbs. I honestly don't know what he does. 

Mr. Halley. Does Mr. Gillman do any accounting for Mr. Samuel 
P.Cohen? 

Mrs. Hibbs. I believe he made up his income tax. That is the only 
thing I know of. 

Mr. Halley. Have you ever heard of Mr. Edward Rosenbaum ? 

Mrs. Hibbs. Yes, I clid. 

Mr. Halley. Would you say who he is ? 

Mrs. Hibbs. I don't know who he is. He was in the office, but that is 
as far as I know. 

Mr. Halley. Does Mr. Gillman or his company do any accounting 
for Mr. Edward Rosenbaum? 

Mrs. Hibbs. No. I think several years ago he made up an inconie 
tax for him, but not recently. 

Mr. Halley. Has Mr. Rosenbaum been in the office recently ? 

Mrs. Hibbs. No ; he hasn't. 

Mr. Halley. Have you ever heard of Mr. Joseph Friedlander ? 

Mrs. Hibbs. No, I don't know him. 

Mr. Halley. Mr. Jack Friedlander? 

Mrs. Hibbs. No. 

Mr. Halley. Have you ever heard of the wire service dealing with 
horse-race information ? 

Mrs. Hibbs. No. My work is strictly accounting, and I have charge 
of tlie typing department and the files. 

Mr. Halley. Does Mr. Gillman do the accounting work for any 
people in the bookmaking business? 

Mrs. Hibbs. No, I wouldn't know that. I wouldn't know whether 
he is connected with bookmaking or not. 

Mr. Halley. But you might from the files have noticed whether the 
business of certain of his customers was bookmaking? 

Mrs. Hibbs. Not that I know of. I wouldn't know whether he was 
or not. 

Mr. Halley. I am not quite sure I understand your answer. Is it 
that you wouldn't know or that you don't know of any? 

Mrs. Hibbs. I don't know of any. 

Mr. Halley. In other words, to your best knowledge, there are no 
customers or clients of Mr. Gillman's who are in the bookmaking 
business? 



(ORGANIZE© CRIME IN mTERSTATE C'OMMERGE 29 

Mrs. HiBBS. Not that I kilow of. 

Mr. Halley. I have no further questions, Mr. Chairman. 

The Chairman. Senator Hunt? 

Senator Hunt. I have no questions. 

The Chairman. Thank you very much, Mrs. Hibbs. 

TESTIMONY OF ABE ALLENBERG 

Mr. Halley. Will you state your name? 

jNIr. Allenberg. Abe Allenberg. 

Mr. Halley. What is your address? 

Mr. Allenberg. 3301 Collins Avenue. 

Mr. Halley. The Robert Richter Hotel? 

Mr. Allenberg. Yes, sir. 

The Chairman. Mr. Allenberg, will you stand and hold up your 
right hand ? Do you solemnly swear that the testimony you will give 
this committee will be the truth, the whole truth and nothing but the 
truth, so help you God ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Mr. Allenberg, you were served by me with a subpena 
duces tecum ? 

Mr. Allenberg. Yes, sir; I was. 

Mr. Halley. That subpena asked for certain records ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Do you care to make a statement about those records? 

Mr. Allenberg. Whatever papers I have are over at the Boulevard 
Hotel in packages, because I was at the hotel. My lease expired and 
we were moving out of there and we wrapped everything up in bundles 
and I w^ould have to go over and open the bundles and see how many 
papers I have on the Tropical Park situation. Tropical Park Manor 
and the Wofford Hotel. All the papers that I have will be over there. 

Mr. Halley. These papers relate, do they not, Mr. Allenberg, to 
the ownership of certain interests in the Tropical Park Race Track 
which was in your possession as a trustee; is that correct? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And to the ownership of an interest in the leasehold 
of the Wofford Hotel? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And do they also relate to the ownership of the Boule- 
vard Hotel ? 

Mr. Allenberg. No ; it would be the lease of the Boulevard Hotel. 

Mr. Halley. And to various other ventures in which Mr. Frank 
Erickson appears in one way or another ? 

Mr. Allenberg. Mr. Erickson does not appear in the Boulevard 
Hotel at any time. 

The Chairman. When are you going to get the records ? 

Mr. Allenberg. As soon as I can. IBy tomorrow afternoon I will 
try to have them. The building is closed up and it is dark there at 
night. I will go there tomorrow morning. 

The Chairman. All right, sir. 



30 ORGAXIZED C'RIIME IN INTERSTATE COMMERCE 

TESTIMONY OF CHARLES B. COSTAR, ACCOMPANIED BY 
WILLIAM G. WARD, ATTORNEY 

Mr. Halley. Your full name is Charles B. Costar ? 

Mr. Costar. Yes, sir. 

Mr. Halley. Your address is the First National Bank Building, 
Miami, Fla ? 

Mr. Costar. Yes, sir ; 903, if you want the room number. 

The Chairman. Mr. Costar, do you solemnly swear that the testi- 
mony you will give this committee will be the truth, the whole truth, 
and nothing but the truth, so help you God ? 

Mr. Costar. I do. 

Mr. Halley. Mr. William G. Ward is appearing as attorney. 

Mr. Ward. Personal attorney for Mr. Costar. 

Mr Halley. What is your address ? 

Mr. Ward. 1229 Dupont Building. 

Mr. Halley. Do you want to make a statement, Mr. Ward? 

Mr. Ward. I want to make this statement : When Mr. Costar called 
me about 3 : 30, I was advised by telephone at about 2 o'clock or 2 : 30 
that my associate Eobert Ward came down here and Mr. Costar told 
me what the situation was. He is an accountant here with some large 
practice and a large office and I told him to get whatever files he had 
available and bring them down even though he was not subpenaed. 
So he is here for the purpose in his professional capacity of giving 
you any information he has, and if you want more files or records, 
they are available to you. 

I also want to make this statement : With reference to his constitu- 
tional rights, not on behalf of himself but on private information 
which he has for some of these clients, I assume the usual laws apply, 
the same as the other, and unless the client himself claims immunity, 
he is privileged to give whatever information he has. 

The Chairman. That is our usual resolution. We appreciate your 
cooperation, JNIr. AVard. 

Mr. Costar. Senator, may I say this : I haven't yet received the sub- 
pena, and as I told you a moment ago, they looked for me and I wasn't 
there. My wife met me at the train and said, "They were looking 
for you." 

I wanted to let you know I want to cooperate with you. 

The Chairman. We appreciate that. 

I think it would be best to serve a subpena on Mr. Costar. 

Mr. Halley. The subpena whicli you issued. Senator Kefauver, 
was issued to Mr. William B. Deegan. May I amend it to insert my 
name instead? 

The Chairman. Let it be amended. 

Mr. Halley. And I will serve it upon Mr. Costar. Would you 
like to read it, then we can talk about it? 

Mr. Costar. I have read the print. Now I want to read the type- 
written matter [reading]. 

All rjo-lit, sii'. 

Mr. IIali,ky. Did you ever represent the Farm Casino? 

Ml-. Costar. Yes, sir. 

Mr. Halley. Do you now? 

Mr. Costar. Well, that operated on the — as I recall from memory, 
it was only ojie season, and Avhen I say "one season" I mean a period 



ORGANIZED CRIME IN INTERSTAT'E COMMERCE 31 

of 4, 5, or 6 weeks; maybe not tliat long. \Vliat we call the season 
probably is anywhere from December through March or April. 

Mr. Halley. Were you handling the accounting for the Farm Ca- 
sino during that period? 

Mr. CosTAR. My office was; yes, sir. 

Mr. Halley. Were you personally familiar with it? 

Mr. CosTAR. We were familiar to this extent : They gave us daily 
reports of their operations and from that we wrote up records and 
filed tlieir taxes; their tax returns. 

Mr. Halley. Wlio were the owners of the Farm Casino? 

Mr. CosTAR. It was a joint venture or partnership composed of 

The Chairman. Mr. Costar, when did the Farm Casino operate? 
You say it operated one season? 

Mr. CosTAR. Yes, sir. 

Mr. Halley. What season? 

Mr. CosTAR. I will try to tell you from the file I have on it. It is 
the only file. The period January 7 to April 30, 1944, and as I recall, 
that is the only time it operated. 

Mr. Halley. Do you have the records pertaining to the Farm 
Casino available now? 

Mr. CosTAR. This is the only thing I have, Mr. Halley. This is a 
power of attorney and a letter of protest protesting the findings of 
the agent. Let me qualify that. 

We have been able to find in the short time I have been in the office 
this afternoon 

Mr. Halley. Do you liave the income-tax returns ? 

Mr. CosTAR. No, sir ; I don't have it with me. We may not have 
it. As a general rule, when the Treasury Department gets through 
with the two or three clients I represented that are in this business, 
we destroy them. After the assessments have been made of the re- 
turns and the returns have been examined and they paid their de- 
ficiency, if there is any due, and so forth, we just don't waste that 
space. 

Mr. Halley. Is it your testimony that you have destroyed the tax 
returns representing or relating to the Farm Casino? 

Mr. CosTAR. Not until I check further. I told you I got into my 
office at about 3 o'clock and we checked to get as much as I could 
together to come over here. 

Mr. Halley. Did you check to see if you had the checks and tax 
returns too relating to Farm Casino? 

Mr. CosTAR. No. All the files and tilings I have here and if there 
is anytliing 

Mr. Halley. What files do you have to deliver to the committee? 

Mr. CosTAR. The only one I have is this tax case. 

Mr. Halley. Would you deliver that now pursuant to the sub- 
pena? 

Mr. CosTAR. Yes, sir; but I would like to have an inventory of it. 

Mr. Halley, That can be done. 

Mr. CosTAR. In detail. I would like to have a detailed inventory. 

Mr. Halley. Would you make j^our inventory and we will cer- 
tify to it. 

Mr. CosTAR. All right, sir. 



32 ORGANIZED CHIME IN INTERSTAT'E COMMERCE 

The Chairman. Under those conditions, it will be made a part of 
the record and Mr, Costar, we will work with you in getting any of 
these back to you as quickly as possible. 

Mr. Costar. Senator, may I say this: For all or anything that I 
have in my office, you don't have to have a subpena. Just come and 
get it, and if you want to have your people come there and work, I 
will make them comfortable and give them a place to work in. We 
want to cooperate with you. We have a number of accounts there 
and over the years we have accumulated a lot of files. 

Mr. Halley. Did you ever represent Frank Erickson personally? 

Mr. Costar. No., sir. The only way Mr. Erickson has ever ap- 
peared in my files was through this Farm Casino, he being one of the 
participants. 

Mr. Hai.ley. The Farm Casino is engaged in the gambling business ? 

Mr. Costar. Yes, sir. It was a joint venture composed of a number 
of men that operated it. Yes; they gambled out there. They had, I 
believe, a crap game. I was never out there, and I am talking from 
hearsay. I have never seen the operation, but I guess that would 
cover it. 

Mr. Halley. Do you represent any other clients who are in the 
gambling business? I am not confining my questions to the matters 
in the subpena. 

Mr. Costar. Yes, sir. I would say that Charlie Thomas would be 
classified as in the gambling business. 

Mr. Halley. Would you spell the name ? 

Mr. Costar. Charles Thomas. 

Mr. Halley. Any others ? 

Mr. Costar. And Jack Friedlander. 

Mr. Halley. Do you still represent those two ? 

Mr. Costar. Yes, sir. 

Mr. Halley, Any others ? 

Mr. Costar. Dave Byer. He is now deceased. He has been dead 
for 2 years this May — this month. 

Mr. Halley. Any others? 

Mr. Costar. That is all I can think of right at the moment. These 
others that are on here — Padget, Dyer, and Wall — those fellows have 
been in this Farm Casino I know in operation with these other men, 
but individually and personally I haven't represented either one of 
those. 

Mr. Halley. You understand the question is not confined to the 
names recited on the subpena. Do you represent any other people at 
all or company whose venture is in the gambling business? 

Mr. Costar. There is one that you don't have on here that comes 
to my mind, and that is Murl Yarborough — ]M-u-r-l. 

Mr. Halley. Could we take these in order and would you state 
their business. First I think you mentioned Dave Byer. 

Mr. Costar. Yes, sir. 

Mr. Halley. In wliat business is he? 

Mr. Costar. When he was alive he was interested in the operations 
of Mr. Thomas, tlie same operations, and was a partner in this joint 
venture of tlie Farm Casino. 

Ml-. Haixey. What is the present operation of Mr. Thomas? 

Mr. Costar. Mr. Thomas didn't do anything this last year, so far 
as I know. 



ORGANIZED CE'IME IN ESTTERSTAT'E COMMERCE 33 

Mr. Halley. What was his last- 



Mr. CosTxVR. His last operation that he participated in was the 
casino in Miami. 

Mr. Halley. What Avas the name of it ? 

I^Ir. CosTAR. Chib 86. 

Mr. Halley. Was tliat a joint venture? 

Mr. CosTAR. Yes, sir. 

jNIr. Halley. Do you recall, without the aid of a document, the 
others in the joint venture? 

Mr. CosTAR. No, I don't. There are a number of them, Mr. Halley, 
and I may have overlooked some of them. Mr. Thomas was in it, 
Mr. Friedlander and I\Ir. Yarborough. I am not sure whether Mr. 
Dyer was or not. I would have to refer to the record. There was a 
lumiber of them. 

I personally don't do a lot of this work, and I would have to go to 
the records to be sure that I was telling you a true statement of facts. 

Mr. Halley. Are there any other gambling businesses or ventures 
of Cliarles Thomas wliich you recall now ? 

Mr. CosTAR. Mr. Halley, I believe he has an interest in what you 
call the numbers game, but I am not sure about that. I would have 
to go to the records. 

Mr. Halley. For the committee's benefit, would you state what 
you mean by a numbers game ? 

Mr. CosTAR. Just for the lack of a better name, perhaps, in Cuba 
they have a lottery, and they sell tickets here, as I understand, on 
the ending number : that is, from zero to 99. You can call that bolita 
or lottery or numbers or whatever else. I have heard this and I 
don't know from actual experience, but they have a daily operation 
that they operate, and whether he is in it or not, I don't know. That 
is something he will have to answer because I make up his returns 
strictly from the information that he brings in on those operations ; 
the figures that they submit on those operations. 

Mr. Halley. You have those records and will turn them over to 
the committee? 

Mr. CosTAR. Yes, sir. 

Mr. Halley. What are the operations of Jack Friedlander? 

Mr. CosTAR. Club 86. Other than that I don't know except that in 
preparing his return he tells me that he made this much money here, 
that much there and elsewhere, and that is what we report on the 
return. 

]\Ir. Halley. Do these people — let us say Friedlander spcifically — 
give you any records to support their statements? 

Mr. CosTAR. Most of their operations are confined to joint ventures 
and partnerships, and the income is from that source. 

Mr. Halley. Is the income generally cash in the form of bills rather 
than bankable checks? 

Mr. CosTAR. In Club 86, Mr. Halley, we have a very complete set of 
records. The other operations — and please make note of this until I 
can verify it from the records — so far as I can recall, the other opera- 
tions are maintained by other accountants — who they are, I don't 
know, but they will come in at the end of the year or at tax return time, 
and he will say, "This is what I made from this operation or that" 
and so on and so forth. 



34 ORGANIZED CmME IN INTERSTATE COMMERCE 

Senator Hunt. May I ask: What do you mean by "an operation"? 

Mr. CosTAR. Well, assuming that he has an interest in a baseball 
pool. I am just using it as an illustration. I don't know, Senator. 
He will come in and say, "Charlie, here is what I made on the baseball 
pool last year." With that in mind, I will say, "Who are the part- 
ners," and he will say, "Just don't worry about that. This is a part- 
nership," and I will put that down on his return, or pass the informa- 
tion on to my auditor to make up his return. 

The only one I can recall right now without going to the records 
that we actually kept the records on — and that is in a strictly super- 
visory way — we are not there to keep the detail of it — is the Club 86. 
The others he brings the information in to me. 

Senator Hunt. Do you know if this Club 86 has like games going 
in any other city or any other State, with a like organization or a like 
set-up ? 

Mr. CosTAR. Not to my knowledge. I don't know. Senator. I know 
the Club 86 operation, but other than that I don't know anything 
about it. We have a complete set of records on their operation out 
there. 

Mr. Hallet. The committee has seen a number of complete sets of 
records — may I interpolate — because I am trying to get your views 
as an expert rather than examining you on anything that you should 
by inference think concerns you. 

The committee has seen a number of so-called complete sets of rec- 
ords which when examined carefully turn out to be dependent upon 
unverified figures concerning the handling of large amounts of cash 
which never get to a commercial bank and are simply stated from day 
to day or week to week. 

When you refer to a complete set of records, do you go behind the 
figures given you concerning the handling of cash ? 

Mr. CosTAR. No, sir; we don't. That would be impossible, Mr. 
Halley, unless we had a crap table or a roulette table, but the internal 
control we have out there is quite good. 

Mr. Halley. Isn't it a fact that in all these gambling operations the 
income day after day is in the form of large amounts of cash which 
are never banked ? 

Mr. CosTAR. Well, no; I wouldn't say that. I would say — and I 
think the records will speak better than I can speak — as I recall, their 
routine is to' put a large amount in the bank every day because they 
always handle a lot of checks and they have to be cleared, and so forth. 

Mr. Halley. Over and above what goes into the bank, isn't there 
a large amount that never does go into the bank ? 

Mr. CosTAR. I don't believe so, Mr. Halley. I don't know. The 
record would have to answer that for me. I would like to refer to 
that instead of my memory. 

Mr. Hatjley. Would you say or do you know it to be a practice of 
any gambling establishment to deposit each day the total receipts of 
tlie day before in the bank? 

Mr. CosTAR. I have advocated it, and up to a point — and what that 
point is we will have to get from the record — they do deposit the day's 
receipts, whether in cash or in checks. 

Mr. Halley. Do you mean they deposit a part of the day's receipts ? 

Mr. CosTAR. They deposit the entire receipts. I have advocated 
that, but whether they followed it through or not, I don't know. 



ORGANIZED C'R'IME IN INTERSTAT'E COMMERCE 35 

Mr. Halley. Did you ever attempt to ascertain whether any of your 
clients have taken that advice? 

Mr. CosTAR. Bear in mind that the man on my staff is the man 
doing the work. I have tokl them that and if they don't do it 100 
percent of the time, or 90 or 40 percent or 20 percent — as I said, the 
record will speak for itself better than I can tell. 

Mr. Halley. Are your men on the premises each night? 

Mr. CosTAR. No. sir. 

Mr. Halley. Your men have to take the statements of the people 
who are there? 

Mr. CosTAR. That is correct. We strictly prepare their returns, 
and in the case of Club 86 we write up the books and records from the 
daily sheets and reports that are submitted to us. 

Mr. Halley. Do you check the records in the case of Club 86 and 
any other gambling ventures which you audit to ascertain whether, 
on the face of the records, there are not comparatively large sums of 
cash which never are deposited in the bank ? 

IMr. Costar. Even their records as going into their own bank, 

Mr. Halley. What do you mean by "their own bank" ? 

Mr. Costar. They are just like a race track. They operate on the 
some principle. The race track has a bank roll that they call the 
B. K.— $300,000 or $500,000, and they maintain that figure, or upward. 
It may run up to $500,000. Let us assume that they start with a bank 
roll of $300,000. That may be high down here, or maybe $100,000, but 
the principle is there, and if they don't deposit it, it will increase their 
bank roll. 

]\f r. Halley. That is in the form of cash on hand ? 

Mr. Costar. Yes. 

Mr. Halley. Which they record but keep on the premises? 

Mr. Costar. Yes. It is kept in the armored truck. The armored - 
truck people handle it. 

Mr. Halley. Where do the armored-truck people put it? 

Mr. Costar. In the safety-deposit vault. I know they are insured 
and they are responsible for it. 

Mr. Halley. Do you mean that all cash on the premises each night 
is delivered to the armored truck ? 

Mr. Costar. Oh, yes. 

Mr. Halley. They do not have vaults of their own? 

Mr. Costar. They have a small safe out there, but this bank roll I 
have been told has been turned over to the armored-truck people. 

Mr. Halley. Who are the armored-truck people ? 

Mr. Costar. The only one here is Rolfe Armored Truck. 

Mr. Halley. How do you spell it? 

Mr. Costar. R-o-l-f-e."^ 

Mr. Halley. Do they service the various gambling establishments? 

Mr. Costar. I don't know. I know they service the Club 86. That 
is the only armored-truck service I know of, and I would say they 
service all. 

Mr. Hai^ey. From a tax-accounting standpoint, the practice, if it 
does exist, of having sums of cash which are not deposited in the com- 
mercial bank daily would leave the possibility of having income which 
would not be reported or recorded in any way, would it not ? 

Mr. Costar. No. 



'36 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Halle Y. How is it subject to control? Aren't you depending 
on what you are told by your client ? 

Mr. CosTAR. I just told you that they start with a bank roll of $300,- 
000 or whatever it may be. That fluctuates either up or down either 
in the bank or on deposit in the cash account. 

Mr. Halley. On a particular day, say January 2 or 3 of 1950, the 
bank roll starts at $300,000, and from the night's operations they 
make $15,000. Is there any way in the world to show whether they 
have $15,000 or whether they put in their own records $10,000 and 
kept $5,000 in their safe or in their pocket ? 

Mr. CosTAR. I think I answered that a moment ago when I said there 
was an internal control. 

Their procedure is that they have a money room, the same as a race 
track operates, and that money is put in there. The table is set up, 
and I get the procedure, and they charge that operator with so much 
money. They put whatever is necessary to give him enough change. 
He sells chips. If he gets too much money on the table he turns it 
into the money room, or he puts the cash in a little slit and it drops 
down into a box. Then somebody comes around and opens the box 
with a key. They don't operate that way around here. I have never 
seen that. 

Mr. Halley. Suppose he sells $100 worth of chips. 

Mr. CosTAR. His money is lying in a box. 

Mr. Halley. And that is emptied from time to time ? 

Mr. CosTAR. Yes, sir. 

Mr. Halley. And if he wins, there are chips back on the next play. 
There is no record of that, is there ? Does he keep any record of each 
play ? 

Mr. CosTAR. No. 

Mr. Halley. He could deal $100 worth of chips over and above that 
all night long and there would be no way to tell whether he sold his 
$100 worth of chips 10 times or a hundred times. 

Mr. CosTAR. Sure. If he starts with $5,000 and he ends up with 
$30,000, he must have won $25,000. 

Mr. Halley. You can't tell that if they empty the money as it is 
won, which goes into a drawer periodically and emptied by one of the 
employees of the house. 

Mr. CosTAR. But a record is kept in the money room. 

Mr. Halley. Wliat happens to the money in between ? 

Mr. CosTAR. They receipt him for what they have taken off. 

Mr. Halley. Do they give the teller a cash receipt? 

Mr. CosTAR. Yes. 

Mr. Halley. What does he do with those receipts? 

Mr. Costar. I don't know. 

Mr. Halley. Do you get them? 

Mr. CosTAR. No; I don't. We don't get them. They keep that 
record of what they put out in addition to any money they advance, 
and by the same token they keep a record of what they take off. 

Let us assume that, following througli your questioning, we put 
$5,000 on and lie loses it in some dice game. Some guy comes along 
and wins it and they have to pay him off. So they will draw an addi- 
tional $25,000 from the money room and it is charged to the table. 
So the money room is your control. There would have to be collusion 



ORGANIZED CRIME IN INTERSTATE COMMERCE 37 

between your operator and the tellers in the money room and the audi- 
tor, or whoever it is in charge of the records at the casino. 

Mr. Halley. Is there an auditor at these casinos? 

Mr. CosTAR. They have a man there who does all of that. 

Mr. Halley. Who is the man at Club 86 ? 

Mr. CosTAR. I don't know, but I think Ashley was the one that did it 
the last time. 

Mr. Halley. What is Ashley's full name? 

Mr. CosTAR. Tom is his full name — ^Tom Ashley. 

JNlr. Halley. Wliat does Tom Ashley do? Doesn't he get a slip 
periodically from the owners telling him what the net income or loss 
from each form of gambling is ? 

Mr. CosTAR. Not to my knowledge. The people I have represented 
have never done anything like that. They just take it as it comes. 
There are so many partners that it is impossible to work it that wa.y. 

Mr. Halley. Let me ask you a hypothetical question and see 
whether you would consider the following methocl of operation a 
proper one. Suppose the moneys were deposited in the cashier's cage 
through the course of any evening, and at the end of the night it was 
counted by the owner of the house who kept a private record and 
turned that record over to the auditor only at the end of the year. 
Would you say that would be a proper mode of operation? 

Mr. Costar. No ; I wouldn't say that would be proper because — well, 
if the individual was reliable, it would be. But I, as an accountant, 
couldn't accept that without some qualification. At Club 86 we don't 
have that. 

Mr. Halley. What qualification would you require in order to 
accept it? 

Mv. CosTAR. At Club 86? 

Mr. Halley. Yes. 

Mr. CosTAR. To begin with, you have many partners — 8, 10, or 12 — 
I don't know how many without referring to the records, and you have 
a number of people that this money goes through and the record goes 
through their hands. You would have to have collusion among a great 
many people before you could do that. 

Mr. Halley. The individual who handles each table is not aware 
of the total ? 

]Mr. CosTAR. No. 

Mr. Halley. So far as he know^s, the table next to him might be 
having losses while he is winning ? 

Mr. Costar. He doesn't know. It is all cleared through the money 
room. 

Mr. Halley. And the man that does the counting in the money room 
doesn't keep these individual slips that are handled — these receipts — 
to the tellers ? 

Mr. CosTAR. Until the end of the day. Then he makes his recapitula- 
tion. 

Mr. Halley. So that if the man in the money room and the partner — 
if there is any collusion, the addition at the end of the day is whatever 
they want it to be. 

Mr. CosTAR. They would have to be stealing from each other, or one 
would be taking advantage of the other. 

Mr. Halley. Not if they split evenly. 



38 ORGANIZED CRIME IN INTERSTATE COMMERCOE 

Mr. CosTAR. I am satisfied that with the way that is controlled out 
there, that couldn't happen. The same thing would apply to a race 
track. 

Mr. Halley. You haven't convinced me that there is any way in 
the world, when you have a man who is not one of your auditors who 
is working for the people who run this place to sit in a game and count 
the money and then destroys all slips at the end of the day. I am not 
satisfied that there is any way in the world to keep him from marking 
down the total for the day and any figures that his boss wants him to 
mark down. 

Mr. CosTAR. We must rely on honesty, which your records prove most 
people are. Secondly, when you deal with a lot of people or more than 
two people, you get into a lot of trouble and collusion and conniving 
and scheming, and thirdly, somewhere along the line they would trip 
themselves. There are three major factors that are against that. It 
may happen. I am not saying it doesn't, but I think it is impractical. 

Mr. Halley. But you have heard of it actually happening ? 

Mr. CosTAR. I never heard of it happening with that number of 
partners they have out there, or any other operation elsewhere. I 
have never heard of it. 

Mr. Halley. Have you never heard of money being taken off the 
top at a gambling house ? 

Mr. CosTAR. Yes, but I say where you had collusion with 8 or 10 
partners or more, plus the men that work for you. 

Mr. Halley. You need only the collusion of one man and that 
is the man that does the counting in the cage. 

Mr. CosTAR. You need more collusion than that if you understand 
accounting. 

Mr. Halley. With all these games going and a lot of receipts being 
handled, no two men in the room have any idea of the total because 
the man at one table is busy and he can't watch any other table but 
his own. 

Mr. CosTAR. I don't know. 

Mr. Halley. The receipts are all torn up. If you kept the receipts 
permanently you might have some check, but the very fact that the 
receipts are torn up at the end of the day indicates a desire to elimi- 
nate the possibility of a check. 

Mr. CosTAR. I don't think they are torn up. I am not out there. 
They may hold them for a week or 2 weeks or will hold them 8 weeks. 
I don't know how long. 

All I know is that they give us a recapitulation, and that is the 
basis on wliich we make up the tax return and write the report on. 
Have you ever been in a gambling casino? 

Mr. Halley. If you don't mind, I will ask the questions. 

Mr. CosTAR. When I said it, I realized what I had said, I am sorry. 

Mr. Halley. Let's keep the questions on this side. 

Mr. CosTAR. I was going to preclude explaining how a casino 
operates. 

Mr. Hall?:y. I have read books on it. 

Mr. C'osTAR. If you want to take it off the record 

Mr. Halley. (io ahead and explain it for tlie record because T 
tliink that is important. You are not answering the questions for my 
benefit, but for tlie ])enefit of the committee and for the record and 
we are trying to get the benefit of your expert knowledge on it to 



ORGANIZED CRIME IN INTERSTATE COMMERCE 39 

ascertain Avliether or not this type of operation can possibly be con- 
trolled so that when the tax point of view is concerned, there is a 
proper safeguard for the j^ublic, 

Mr. CosTAR, Mr. Halley, at Clnb 86 — and I have been in jnst a 
couple of them in my time, they have a something built around the 
wall with peepholes that look like air conditioning holes or whatever 
you want to call them. 

They have men stationed up there to watch these operators, and they 
also have over each crap table, the times that I have been in the casino, 
which hasn't been too many in my time — I have just visited them, they 
have a man standing on a ladder or whatever you want to call it. 
The scene is familiar and he looks down and he is watching those 
players. You say to me, "Why do they do that?" For two reasons: 
first, to make sure that the operator is not clipping them, and second 
to see that there is not a lot of phoney dice being thrown by the players. 
Beyond that I don't know what the purposes are, but that is a safe- 
guard that is in most casinos. 

You have men hidden behind this wall — at the Club 86 I am talking 
about — plus the man that stands on the ladder. They then change those 
men periodically often during the evening. How long they stay on 
the ladders at a time I don't know, but Joe Doakes will be here for 
10 minutes and Paul Smith will be at the same latter for another 
10 minutes. That is another safeguard. 

Mr. Halley. That is all very carefully described in an article in 
The Saturday Evening Post about 2 weeks past dealing with Reno, 
and it corroborates what you said. 

Mr. CosTAR. I have never been there. 

Mr. Halley. Aren't they there to see that the individual players and 
dealers don't cheat the house ? 

Mr. Costar. That is right. 

Mr. Halley. For instance, a particular player who happens to be a 
friend of a dealer, they want to make sure that he doesn't win too 
often. 

Mr. Costar. That is right. 

Mr. Halley. But that very safeguard makes it so difficult for the 
dealer to pocket the money that it is not really necessary for them to 
follow through with this system of receipts and checks on their own 
people very carefully. They are watching their own people very 
carefully by watching and not by bookkeeping. 

Mr. Costar. You have a thought there, but if you are the dealer and 
I am the money-room man, I check you out, and there is my auditor 
back here, and when he gets through at the end of the day and he 
has checked you and given you $50,000 for that table tonight, you had 
better check in with $50,000 or show you paid out $50,000 plus your 
winnings. That is what he goes by. 

Mr. Halley. There are seven other tables ? 

Mr. Costar. Yes. 

Mr. Halley. It all gets counted up rather carefully in the counting 
room ? 

Mr. Costar. That is right. 

Mr. Halley. And the owner or the partners — two or three of them — 
are in there with one low-paid employee who is called an auditor, and 
he writes down the figures. 

68958—50 — pt. 1 4 



40 ORG'ANIZED CRIME IN INTERSTATE COMMERCE 

Mr. CosTAR. I wouldn't say lie is low paid, and I don't know 
that there are three or four partners. I have never been there at 
the time of morning when they close. 

Mr. Halley. How can you say that you are sure that the system 
works if you have never been there to see the accounting? Isn't it 
apparent that if one or two men are counting and calling off figures 
to an auditor and they tear up the receipts as they go, they can pretty 
well tell the auditor what they want ? 

Mr. CosTAR. The auditor doesn't get it that way. The man in the 
money room is charged up with the money he has turned out or sent 
out and he has to get it back or get receipts for it and he makes his 
daily report, and then it goes to his auditor or whoever keeps the 
recap sheet. 

Mr. Halley. Who is the money man ? 

Mr. CosTAR. The man in charge of the money room. 

Mr. Halley. Is he an accountant or is he one of the partners. 

Mr. CosTAR. I don't know. I have never been in there in the morn- 
ing when they closed up. I couldn't answer that. 

Mr. Halley. I don't think I have any further questions, Mr. Chair- 
man. 

The Chairman. Mr. Halley, what about the records and all that? 

Mr. Halley. We are going to collect them tomorrow and any rec- 
ords you have you will turn over to the committee's investigator; 
is that right ? 

Mr. CosTAR. Yes, sir. Can I ask you a question on that? There 
are a number of records and files. Rather than inventory those files, 
I would like to have your re])resentatives work in my office, if possible. 

Mr. Halley. We would like to have the records at least long enough 
to study them in our own office, so perhaps the best thing is to inventory 
them. 

Mr. CosTAR. It is going to take some time ; a few days to get them 
together. 

Mr. Halley. You can generally inventory a file that big in an hour 
by just picking up a paper and dictating from it. 

Mr. CosTAR. You are welcome to it. It is not a question of not 
turning it over. 

The Chairman. Suppose w^e have someone meet with you in the 
morning and see what can be done. 

Mr. Halley. There will be somebody in your office at what time ? 

Mr. CosTAR. We get in there on Saturday — I only have one young 
lady come in and one of the men. We don't work on Saturdays except 
to keep the office open with a skeleton crew. 

Mr. Halley. I think it can be done on Monday. It will probably 
be Mr. Rice. 

Mr. Halley. Were any of the Friedlander operations outside of 
the State of Florida or were they all local? 

Mr. CosTAR. Mr. Halley, I couldn't answer that truthfully. I 
would just guess. 

Mr. Halley. Would the records show it? 

Mr. CosTAR. I am not too sure about that. He might have said 
"XYZ" partnership and we wouldn't have asked for an address. 
On the other hand, I think the address is required on the tax returns, 
and I think they would show the address. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 41 

Mr. Halley. May I ask whether after you have produced these 
records, if Mr. Rice, assistant counsel to the committee, has any ques- 
tions, you wouhl have any objection to answering them ? 

Mr. CosTAR. No ; I will be glad to. Let me repeat again : I will 
cooperate with you in every way I can, 

Mr, Halley, Thank you. 

Mr. CosTAR. You don't have to subpena me or threaten me. I am 
willing to cooperate with you and I want you to have the information 
that you want. 

Mr. Halley. Thank you very much. 

The Chairman. Is there anything further, Mr, Halley ? 

Mr, Halley, No, sir. 

The Chairman. Do you have any questions, Senator Hunt ? 

Senator Hunt. I have no questions. 

The Chairman. Thank you, Mr. Costar. 

The committee will stand adjourned until 9 a. m. tomorrow morning. 

(Whereupon the committee adjourned at 5:55 p. m. until the fol- 
lowing morning.) 



INVESTIGATION OF OEGANIZED CKIME IN INTERSTATE 

COMMEECE 



SATURDAY, MAY 27, 1950 

United States Senate, 
Special Committee To Investigate Organized Crime 

IN Interstate Commerce, 

Miami^ Fla. 
The committee met, pursuant to adjournment, in the courtroom of 
the United States district court, at 9 a. m., Senator Estes Kefauver 
(chairman) presiding. 
Present: Senators Kefauver and Hunt. 
Also present : Rudolph Halley, chief counsel. 

TESTIMONY OF KALPH M. HART, ACCOMPANIED BY MR. 
CHAPPELL, ATTORNEY 

Mr. Halley. Will you state your full name and address ? 

Mr. Hart. Ralph M. Hart, 211 Eclgewood Drive, West Palm Beach, 
Fla. 

The Chairman. Mr. Hart, will you stand and be sworn, please ? 

Do you solemnly swear that the testimony you will give this com- 
mittee will be the truth, the whole truth, and nothing but the truth, 
so help you God 1 

Mr. Hart. I do. 

Mr. Halley. A subpena was served upon you yesterday to produce 
certain records, was it not ? 

Mr. Hart. Yes, sir. 

Mr. Halley. The subpena asked for all records relating to John F. 
O'Rourke, Frank Erickson, and Mickey Cohen? 

Mr. Hart. Yes, sir. 

Mr. Halley. Have you brought such records ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Would you produce them now for the committee? 

Mr. Hart. Here is the bank statements from 1943 to 1949, and such 
deposits slips as were in my possession. 

The Chairman. Mr. Counsel, I didn't understand. Is Mr. Hart 
an auditor or a public accountant ? 

Mr. Hart. I am a certified public accountant ; yes, sir. 

The Chairman. And your office is here in Miami ? 

Mr. Hart. No, sir. My office is in 310 Citizens Building, West 
Palm Beach, Fla. 

The Chairman. Mr. Chappell, you are from West Palm Beach? 

Mr. Chappell. I am from Miami. 

43 



44 ORGANIZED CKIME IX INTER STATE COMMERCE 

Mr. Hart. These are my tax files, which is the only work I do for 
Mr. O'Rourke. I have the quarterly wage reports which I prepared 
for him, and the income-tax returns. 

Mr, Halley. Do you do any work for Mr. Erickson ? 

Mr. Hart. No, sir. 

Mr. Halley, I^ rank Erickson ? 

Mr. Hart, No, sir. 

Mr. Halley, You work only for O'Eourke? 

INIr. Hart. Yes, sir. 

Mr. Halley. Do you know whether he uses the services of any other 
auditor or accountant? 

Mr. Hart. Mr. O'Rourke? 

Mr. Halley. Yes. 

Mr. Hart. Not that I know of. 

Mr. Halley. Do you handle all his work ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Wliat is his business ? 

Mr. Chappell. Go ahead and tell him, 

Mr. Hart. I think he operates a handbook. That is what we call it. 

Mr. Halley. Where does he operate it ? 

Mr. Hart. West Palm Beach. 

Mr. Halley. What is a handbook ; would you state it just generally ? 

Mr. Hart. He books horse bets. 

Mr. Halley. And does he lay off his bets with anybody ? 

Mr. Hart. Yes; he does. 

Mr. Halley. With whom ? 

Mr. Hart. I don't know whether I can say as to that. My work is 
income-tax work. He has lay-off bets and action and pay-off bets and 
checks with various people, and I don't know any of them. 

Mr. Halley. What names appear in the checks and records. 

The Chairman. Mr. Hart, I think we will get along better, and 
your attorney will tell you so, if you tell vis without any reluctance 
what you know about that. 

Mr, Chappell, He is willing to do that. 

Mr. Hart, I will be glad to do that. 

The Chairman. We don't have to go by the strict rules that are 
observed in a court. This is not a criminal trial. We are making a 
senatorial inquiry to see what the picture is and what kind of legisla- 
tion we want to recommend to the Senate. So, we would appreciate 
your cooperation. 

As I said, we are not bound by the strict rules of evidence that pre- 
vail in courts in which you have had some experience. We will make 
better time and we will understand that some of this may be second- 
hand information that you tell us, or other than of your own knowl- 
edge. So, I thought I would like to make that explanation to you, 

Mr, Hart. I don't know enough about his operations to say who he 
lays off bets to. 

Mr, Halley, Certain names appear. Would you name the people 
with whom he does business? 

Mr, Hart, He has done lots of business with Mickey Cohen. He 
has had business transactions with Frank Erickson. Those two names 
appear on my subpena. 

Mr. Halley. Do any other names occur to you besides those which 
were given to you on the subpena ? 



ORGANIZED CR'JME IN ESPTERSTAT'E COMMERCE 45 

Mr. Hart. Well, you know those things are not important for my 
work. I have them in my files. 

Mr. Halley. Mr. Hart, bear this in mind : Following up what Sen- 
ator Kefauver said, you have given us just the two names we have 
reason to believe you know about. I don't consider that cooperative 
spirit. It seems to me that relying only on that and not remembering 
at this point isn't very convincing. There must be other people. A 
man can't operate a handbook and lay offs just in that way. 

Mr. Hart. There are other people. 

Mr. Halley. Who are they ? 

Mr. Hart. I don't know. 

Mr. Halley. Have you any idea? 

Mr. Chappell. How long would it take you to look at your records 
and find out? 

Mr. Hart. I can look through them very quickly and find out. I 
don't remember these people's names. I don't know them. 

Mr. Halley. Go ahead and refresh your recollection, 

Mr. Hart. I recall a list of checks payable to one man, that the 
checks were borrowed by the Treasury Department, and I have their 
receipt for them. I can't recall the man's name. It was Luke Church. 

Mr. Halley. Where is Luke Church located ? 

Mr. Hart. Luke Church — I don't know the man. All I have here is 
this receipt for canceled checks that I gave the Treasury Department. 
I have three pages of it. 

Mr. Chappell. I think he is from Miami. 

The Chairman. Mr. Chappell thinks he is from Miami. 

Mr. Chappell. We feel that he lives in Miami here. 

Mr. Halley. Mr. O'Rourke will be in to give us that information. 

The Chairman. He hasn't had time to look and see any others. 

Mr. Hart. I will have to go to the canceled checks to do that. I 
don't know the names. They are in there but I don't know the names. 

Mr. Halley. May I suggest that we take the testimony and per- 
haps while Mr. O'Rourke is testifying Mr. Hart can look through 
the checks and resume the stand later ? 

The Chairman. So ordered. 

Mr. Halley. Does Mr. O'Rourke have a partner in the handbooks ? 

Mr. Hart. No, sir ; he does not. 

Mr. Halley. He owns that himself? 

Mr. Hart. Yes, sir. 

Mr. Halley. Does he have any other businesses ? 

Mr. Hart, No other business activities that I know of. 

Mr. Halley. Does he operate any business at the Boca Raton Hotel ? 

Mr. Hart. Not at the present time ; no. 

Mr. Halley. Did he at one time ? 

Mr. Hart. Yes, sir. He operated a business that developed recently ; 
that he operated a business there during two winter season with that 
New York man — what's his name again ? 

Mr. Halley. Frank Erickson? 

Mr. Hart. Frank Erickson. 

Mr. Halley. Have you met Frank Erickson ? 

Mr. Hart. No, sir. 

Mr. Halley. What business did he operate at Boca Raton ? 

Mr, Hart. They booked horse bets. 



46 ORGANIZED CRTME IN KSTT'ERSTAT'E COMMERCE 

The Chairman, Louder, Mr. Hart. 

Mr. Hart. They booked horse bets. 

Mr. Halley. From the guests of the hotel ? 

Mr. Hart. Well, I would have to guess at that. I was never there 
and I don't know, l3ut that undoubtedly is correct. 

Mr. Halley. During what years did they operate ? 

Mr. Hart. Well, it was 1947-48 season and 1948-49, I believe. 

Mr. Halley. Did they operate in 1949-50 at Boca Raton ? 

Mr. Hart. Not to my knowledge. 

Mr. Halley. Did Mr. O'Rourke have any other business in 1947-48 
or 1949 that you know of? 

Mr. Hart. Yes, he had a crap game. 

Mr. Halley. Wliere? 

Mr. Hart. West Palm Beach. 

Mr. Halley. At what premises was it operated ? 

Mr. Hart. It was upstairs, the northwest corner of Lamanna Street 
and Dixie Highway. 

Mr. Halley. Was it connected with any restaurant ? 

Mr. Hart. No, sir. 

Mr. Halley. Or place of entertainment? 

Mr. Hart. No, sir, 

Mr. Halley. Did he own that himself ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Did he have any business at the Roney Plaza Hotel ? 

Mr. Hart. Not to my knowledge. 

Mr. Halley. Did you file an income tax report for the Boca Raton 
operation ? 

Mr. Hart. No, sir. 

Mr. Halley. Did you keep the books on that ? 

Mr. Hart. No, sir. 

Mr. Halley. Who did? 

Mr. Hart. I don't know. I didn't even know about it until he — I 
didn't know he operated there until probably December 1949, during 
an income-tax investigation. 

Mr. Halley. Did you keep the books on the crap game operations ? 

Mr. Hart. No, sir. No books were kept on those operations. It is 
all done by bank operation, and his tax returns are prepared from 
bank deposits. 

Mr. Halley. You mean each day's receipts are deposited in the 
bank? 

Mr. Hart. No, I don't think that is correct. In the operation the 
cash bankroll consistently runs short. They deposit checks only. 
Very seldom is there an excess of actual cash because they take in 
checks. They deposit the checks and if the cash bankroll runs short, 
they write a check to cash to reimburse bankroll. 

Mr. Halley. Do you know in what bank the crap game deposited 
its money ? 

Ml'. Hart. It all went in the same bank account. 

Mr. Halley. What account is that? 

Mr. Hart. AVell, in recent years he has been using the Atlantic Na- 
tional Bank in West Palm Beach. 

Ml-. Halley. Does he also use that to bank for the book that he 
keeps there ? 

Mr. Hart. Yes, sir, it is all in the same bank account. 



ORGANIZED CKIME IN INTERSTATE COMMERCE 47 

Mr. Halley. Does Mr. O'liourke have any other businesses? 

The CiiAiEMAN. You say "in recent years." How about in past 
years ? 

Mr. Hart. He had a bank account at the Florida Bank & Trust Co. 
prior to this and he has had a bank account in the First National at 
Palm Beach. 

Mr. Halley. The Florida Bank & Trust Co. in West Palm Beach? 

Mr. Hart. Yes, sir. 

The Chairman. Has he continued those three accounts or have they 
all been merged into the one at the Atlantic National Bank? 

Mr. Hart. Those accounts have been continued. I have the bank 
statements. The activities have been through the Atlantic National 
Bank in recent years. 

Mr. Halley. Pursuant to the subpena, you have brought the state- 
ments and canceled checks for all of these bank accounts; is that 
correct ? 

INlr. Hart. Yes, sir. 

Mr. Halley. Do you know of any other business that Mr. O'Rourke 
had during the years, say, from 1946 to date? 

Mr. Hart. No other business activities. He had a few little invest- 
ments. 

JSIr. Halley. What type of investments 2 

Mr. Hart. He bought a mango gi'ove; a grovelet. I think it is a 
development where the development maintains a grove for some years. 
The checks would go through regular in payment of the contract, and 
he had an investment in a piece of property in. Riviera, Fla. 

Mr. Halley. Is that in Florida ? 

Mr. Hart. Yes. Riviera Beach, Fla. 

Mr. Halley. Does he have any other property or real estate? 

Mr. Hart. Not that I know of, no, sir. 

Mr. Halley. What were the net profits for the crap game during 
the year 1949 ? 

Mr. Hart. I don't notice it. It is all in one account. It is all com- 
bined when it gets to me. 

Mr. Halley. Who works up those figures and gives them to you ? 

Mr. Hart. I prepare the tax returns from the bank statements. 

Mr. Halley. You can't tell a profit in a crap game from a bank 
statement alone, can you ? 

Mr. Hart, I can tell the combined profit of the operations, yes, sir. 

Mr» Halley. You make no effort to segregate the crap game from 
the books and any other business that he may have ? 

Mr. Hart. No, sir. It is all in one bank account. 

Mr. Halley. In other words, your tax return is prepared on the 
assumption that all moneys received and all disbursements go through 
the bank account ? 

Mr. Hart. The payroll is paid in cash. It doesn't go through the 
bank account. 

Mr. Halley. Is it your testimony that all cash that Mr. O'Rourke 
received in any way except that which is disbursed for payroll or 
other leiritimate expenses goes through the bank account? 

Mr. Hart. He takes out a withdrawal to the account of cash. 

Mr. Halley. Does he report that to you ? 

Mr. Hart. Yes, sir. 



48 ORGANIZED CRIME IN INTERSTATE COMMERCaB 

Mr. Halley. What is that drawmg account? 

Mr. Hart. I think it has been $50 a week. 

Mr. Halley. And you deduct that or rather add that to the net 
income ? 

Mr. Hart. I add that to his income, 

Mr. Halley. Just $2,500 a year in cash ? 

Mr. Hart. Yes. 

Mr. Halley. Is there any other cash that you allow for ? Cash that 
is withdrawn ? 

Mr. Hart. There are other adjustments. He may make a loan at 
the bank, borrow some money or pay off a loan or may borrow some 
money from some of his friends, and those adjustments I have to make 
to the bank statement to arrive 

Mr. Halley. Let's confine the discussion to cash. Is it your testi- 
mony that all of the cash which he receives in any of his operations 
is deposited in the bank account? 

Mr. Hart. That is the plan he works under. I don't handle the 
deposits, but I have no reason to doubt the cash is deposited. 

Mr. Halley. The only cash which would go in the bank account is 
$2,500 a year which he draws, and cash which is used for actual busi- 
ness disbursements? 

Mr. Hart. Yes, sir. 

Mr. Halley. But you have no check on that at all ? 

Mr. Hart. I have no check on it ; no, sir. 

Mr. Halley. You just accept that statement from him; is that 
right ? 

Mr. Hart. Yes, sir. 

Mr. Halley. What was the net profit for his operations in 1949 ? 
Would you refer to the records ? 

Mr. Hart. I can't tell you about 1949. It doesn't amount to any- 
thing because they have been closed and I haven't filed a 1949 return 
yet. 

Mr. Halley. What do j^ou mean when you say that they have been 
closed ? 

Mr. Hart. They have not been open for operations. The State 
has been sewed up. 

Mr. Halley. There was no book kept in 1949 ? 

Mr. Hart. There was a little bit of booking done on the telephone 
and so on, but I don't think it pays expenses. 

Mr. Halley. Is it your testimony that Mr. O'Kourke was not op- 
erating for the year 1949? 

Mr. Hart. Well, it is my testimony that his place of operations has 
been closed the majority of the year. I think they operated — the}'- 
were closed January 7 or 8, 1949, and they have been in there some 
with the doors closed and about — did a little telephone business, but I 
don't know how much. 

Senator Hunt. Why were they closed ? 

Mr. Hart. The heat was on. 

Senator Hunt. Do you know the source of the lieat ? 

Mr. Hart. No; I couldn't swear that I do. 

Senator Hunt. Wliore was tliat jilace of business? 

Hr. Hart. In the Grand Hotel or on Datura Street, in the Grand 
Hotel building, not the hotel proper. 



ORGANIZED CRIME IN INTERSTATE COMIVIERCE 49 

Senator Hunt. How many rooms did he occupy ? 
Mr. Hart. Two. 

Senator Hunt. How many employees did he have ? 
Mr. Hart. That would vary from six to eight or nine. 
Senator Hunt. Could you give us the names of the employees? 
Mr. Hart. Yes, sir. 

Senator Hunt. Are they in your records? 
Mr. Hart. Yes, sir. 

Senator Hunt. How many telephone outlets did he have ? 
Mr. Hart. I don't know anything about that, sir. 
Senator Hunt. Where did he get his wire service ? 
Mr. Hart. Well, there was a leased wire that came in there to West 
Palm Beach and the operator distributed the service to all the books 
there. 

Senator Hunt. Would your records show by canceled checks who 
and the amount he paid for this service. 
Mr. Hart. I think so. 

Senator Hunt. Do you know if there were any checks made pay- 
able to the Continental Press? 

Mr. Chappell. I was talking to Mr. O'Rourke and he told me all 
of his checks were made payable to cash; that he was requested to 
make them that way. 

Mr. Halley. What service did he use ? 

Mr. Chappell. I just wanted to say that I thought it might be of 
assistance in giving him a thought. 

Mr. Hart. The checks are payable to cash, but they all bear the 
endorsement "for deposit." 

I don't recall the names he mentioned. 

Senator Hunt. These various telephone outlets that he had, were 
they all in his name? 

Mr. Hart. I don't know anything about that. 

Senator Hunt. Was he a wholesaler or retailer of this press serv- 
ice; that is, did he receive his wire information and then retail it 
cut, or did he use it for his own purposes and sell it directly to the 
bettor? 

Mr. Hart. Sell it. 

Senator Hunt. If you were placing a bet with him, the only wire 
service he would utilize — he would utilize that wire service for his 
own information. He wouldn't sell that wire service to you that 
you might go out and retail it again ? 
Mr. Hart. No. 

Senator Hunt. He was not in the nature of a wholesaler of book 
or wire information? 

Mr. Hart. No ; I wouldn't think so. 

Mr. Halley. What is the last year in which the book did operate ? 
Mr. Hart. 1948. 

Mr. Halley. What was the net profit? 
Mr. Hart. I will have to look at the record. 
Mr. Halley. Would you look it up ? 

Mr. Hart. That was a very poor year. He shows a net profit of 
$1,702.45. ^ 

Mr. Halley. $17,000? 
Mr. Hart. No, sir; $1,700. 



50 ORGANIZED CRIME IN INTERSTAT'E COMMERCE 

Mr. Hallet. What operations are shown in that return ? 

Mr. Hart. Handbook. 

Mr. Halley. What was the net on the handbook? 

Mr. Hart. The figure I just gave you — $1,702.45. 

Mr. Hallet. Is that the total net income reported by him? 

Mr. Hart. No, sir. He had interest, $379.75. 

Mr. Halley. How about the operation at Boca Eaton ? 

Mr. Hart. It is in these figures. 

Mr. Halley. In those figures ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Wliere is it? Where are your work sheets showing 
how you arrived at it ? You have all the papers here, do you not ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Let us have the work sheets showing how you got the 
$1,702.45 figure ; do you have that ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Let's review them. What operations are shown in the 
work sheets? 

The Chairman. Let's get this clear. This is for what year ? 

Mr. Hart. 1948. 

The Chairman. Is that the calendar year 1948 ? 

Mr. Hart. Yes, sir. 

The Chairman. All right. What is the date of the return you have 
just referred to ? 

Mr. Hart. 1948 calendar year. 

Mr. Halley. Is it dated March — where is the copy of the return ? 

The Chairman. This return is undated, but this is an individual 
income-tax return for the year 1948. It would have been sent in early 
some time in 1949 ; is that right? 

Mr. Hart. I think I had an extension on it. It probably was sent 
in 60 days after March 15. 

The Chairman. Yes, sir. All right. Go ahead. 

Mr. Halley. Turning to your work sheets, would you explain the 
figures and show first the source of income for 1948 ? 

Mr. Hart. I arrived at the income by taking the bank deposits and 
eliminating items which are not income. 

Mr. Halley. You are now talking about gross income for 1948 be- 
fore expenses ? 

Mr. Hart. That is right. 

Mr. Halley. What is the gross income for 1948 ? That is, as shown 
by the work papers ? 

Mr. Hart. $489,139.42. 

Mr. Halley. That is actual income gross ? 

IVIr. Hart. That is the gross receipts from the business. 

Mr. Halley. And it is your contention from a business grossing 
four-hujidred-and-eighty-nine-thousand-odd dollars there was a net 
profit of $1,702.45 ; is that right? 

Mr. Hart. During the course of income-tax examination, I would 
admit there is probaJilv an error of about $1,000 in that. 

Mr. Halley. About $1,000? 

Mr. Hart. Yes, sir. 

Mr. Halley. What are the sources of income ? 

Mr. Hart. What are the sources of income ? 



ORGAlSriZED CRIME IN mTERSTATE COMMERCE 51 

Mr. Halley. Yes. How much did the handbook make and how 
much did the operation at Boca Raton make? 

Mr. Hart. I have no separation on tliis. I don't think there was 
a crap game. I don't know whether there was in 194:8 or not. I woukl 
like to look at tlie records. 

That was ck)sed before the books was. I have no segregation of 
the different businesses. They all went through one bank account. 

Mr. Halley. Did the Boca Raton business have its own separate 
bank account ? 

Mr. Hart. No, sir. 

Mr. Halley. You testified that you didn't even know until 1949 
that there was a Boca Raton business. If it all went through a bank 
account and you knew about it when you prepared the 1948 income 
tax, it seems to me you would have known there was a Boca Raton 
business before December 1949. 

Mr. Hart. I am telling you now that I didn't know until December 
1949. I knew there was a Boca Raton business but I didn't know 
Frank Erickson had anything to do with it. I knew Mr. O'Rourke 
operated there and that funds went through the bank. 

Mr. Halley. Are you now changing your testimony ? 

Mr. Hart. No, sir. 

Mr. Halley. I recall very definitely your testifying that you didn't 
know there was such a thing as an operation at Boca Raton. 

Mr. Hart. I said I did not know there was any such thing as a 
partnership at Boca Raton. 

Mr. Halley. Will the stenographer please go back and read back 
that portion of the witness' testimony concerning what we have been 
talking about? 

(The record was read by the reporter.) 

Mr. HxVlley. May the record show that the earlier portion of the 
witness' testimony has been read to him. 

Do you have any comment now with reference to whether or not 
you want to change your earlier testimony, because it is quite apparent 
that your earlier testimony was that you didn't know there was such 
a thing as an operation at Boca Raton by Mr. O'Rourke. 

The Chairman. Until December 194:9. 

Mr. Hart. My testimony, whatever it is, should have been that I 
did not know of the operation by a partnership in Boca Raton. I 
knew of Mr. O'Rourke 's operation, but I believed that it was a pro- 
prietorship operation and had no knowledge of Erickson's connec- 
tion with it. 

Mr. Halley. You have testified previously that you didn't file an 
income-tax return for the Boca Raton operation because you didn't 
know about it. 

Mr. Hart. I don't think I testified to that. 

Mr. Halley. Mr. Hart, did you file the income-tax report for the 
Boca Raton operation? 

Mr. Hart. It was a partnership return, which I did not file. 

Mr. Halley. Do you have a copy of the partnership return ? 

Mr. Hart. I think I do ; yes, sir. 

Mr. Halley. Will you produce it? 

Mr. Hart (searching through documents). I don't have it. 

Mr. Halley. The subpena that was served upon you called for all 
the papers relating to O'Rourke and Erickson. That was clearly 
within the terms of the subj)ena, was it not? 



52 ORGANIZED CRIME IN m'TERSTAT'E COMMERCE 

Mr. Hart. It is not there. 
Mr. Halley. Do you know where it is ? 

Mr. Hart. No ; I can't say that I do. I thought I had it with me. 
Mr. Halley. Do you have some additional records in your office? 
Mr. Hart. It might be in my office. 

Mr. Halley. Do you have correspondence in your office? 
Mr. Hart. Regarding these matters? 
Mr. Halley. Yes. 
Mr. Hart. No, sir. 

Mr. Halley. Where is the correspondence regarding these matters, 
and by "these matters" I am referring to Mr. O'Rourke's transactions. 
Mr. Hart. I would have no occasion to have any correspondence 
with him. 

Mr. Halley. I note there is some correspondence with the Bureau of 

Internal Revenue in these files that you have been thumbing through. 

Mr. Hart. Yes ; there is some with the Bureau of Internal Revenue. 

Mr. Halley. When you receive a copy of a tax return from another 

a ccountant, there is at least a transmittal letter, isn't there ? 

Mr. Hart. Well, I don't have any — there were no transmittals with 
these returns. They were delivered to me by Mr. O'Rourke. 

Mr. Halley. I don't believe that, and I believe you do know who 
prepared the return. I believe that you are just evading the questions 
of the committee and are attempting to give the committee as little 
information as possible. 

Mr. Hart. That is your privilege. 
Mr. Halley. That is a fact. 

The Chairman. Mr. Hart, let me ask you a question. When did 
you get this partnership return for 1948 of Erickson and O'Rourke ? 
Mr. Hart. During an income-tax examination on Mr. O'Rourke's 
1948 return. 

A revenue agent came in and a man named Price and asked some 
questions and asked if I had a copy of the partnership return for 
Boca Raton and I told him I didn't know there was any partnership 
down there, and he said "Yes," there was, and he gave me what in- 
formation he had about it and I call Mr. O'Rourke and asked him 
about it and he said "Yes," he thought Erickson filed a partnership 
return, and I said I would like to see it, and I asked him to bring it 
down to me and he looked it up and brouiiht it to me. 

The Chairman. What do you think you have done with it? 
Mr. Hart. I don't know. I thought I had it in the file with me. 
Mr. Halley. I don't know how you could prepare the 1948 tax re- 
turn without the partnership return before you if you were reflecting 
the income from Boca Raton in this tax retnrn for 1948. 
Mr. Hart. The income is in these deposits. 

Mr. Hali^ey. How do you know? You are a certified accountant'^ 
Mr. Hart. Yes. 

Mr. Halley. And you are a lawyer? 
Mr. Hart. Yes, sir. 

Mr. Halley. How do you know the income is in those deposits? 
Mr. Hart. That is already in the record; that I don't know. I 
have been told here that I am not bound by the strict rules of evidence 
in this testimony ; that I can give you what: I do know and what I think 
about it. If you want to pin me down to Avhat I can actually swear 
to, I don't know anything about these operations. 



ORGANIZED CRIME IN INTE'RSTAT'E COMMERCE 53 

Mr. Halley. How can you prepare this tax return witliout know- 
ing it and have it on the return ? 

Mr. Hart. I prepared the tax return from the information as fur- 
nished and as stated. 

Mr. Halley. And that information as stated was simply all the 
income that went into a bank account ? 

Mv. Hart. Yes, sir. 

Mr. Halley. Without any break-down? 

Mr. Hart. Yes, sir. 

Mr. Halley. You are agreeing with me that there was no break- 
down at all showing where the income came from? 

Mr. Hart. I don't know what business it came from. There is no 
segregation between the different businesses. 

Mr. Halley. You don't even know that certain businesses were in 
existence, did you ? 

Mr. Hart. I knew the business was in existence, but I didn't know a 
partnership was in existence. 

Mr. Halley. You testified that you didn't know until the end of 
1949 that there was any business at all. I presume that you are 
changing that testimony and you are now saying that you did know 
there was a Boca Raton business. 

Mr. Hart. I definitely didn't know and I don't think I testified I 
didn't — I was testifying about the partnership return and at the 
time I stated I didn't know that existed. 

Mr. Halley. That record will stand as it reads. What I want to 
know now is if you did know there was a Boca Raton business and a 
separate partnership, how could you accept these figures and not 
have asked, at the time you prepared this report, for a partnership 
return for Boca Raton, or a statement from the auditor for the part- 
nership? How could a lawyer or an auditor prepare an income-tax 
return without getting a statement from the auditor who prepared 
the partnership return ? 

INIr. Hart. When I prepared this return, I didn't know there was a 
partnership. 

Mr. Halley. You knew there was a business? 

Mr. Hart. Yes. 

Mr. Halley. Where were the figures for the business ? 

Mr. Hart. In this bank account. 

Mr. Halley. Did you think that the book at Boca Raton grossed so 
little that it wouldn't show up larger than the figures you have in 
your gross-income figures for 1948? 

Mr. Hart. I have not any reason whatever to doubt the fact that 
the money was being deposited in this account. 

Mr. Halley. Do you have the work sheets for the previous years ? 

The Chairman. Just a minute on that. 

Mr. Halley. I want to compare them, sir. I want to show the 
size. Let's say we have 1947 and 1946. 

Mr. Hart. 1 have 1947. 

Mr. Halley. Do you have 1946 ? 

Mr. Hart. Yes. 

Mr. Halley. When did the Boca Raton operations start ? 

Mr. Hart. They operated two seasons. I thought I had those 
returns. 



54 ORGANIZED CROME IN INTERSTATE COMMERCE 

Mr. Halley. Wasn't it the season of 1947-48 and the season 1948- 
49? 

Mr. Hart. That is what I think it was ; yes, sir. 

Mr. Halley. So that the first year in which any income from Boca 
Raton wonld be reflected would be the winter season starting around 
January 1948 because the winter 1947-48 would show no real opera- 
tions before the season opened in January at a place like Boca Raton; 
isn't that so ? 

Mr. Hart. No ; I don't think it is. I think they opened earlier than 
that. 

Mr. Halley. Then there may have been some income in 1947 from 
Boca Raton? 

Mr. Hart. I think so. 

Mr. Hatxey. There would be a great deal of income starting Janu- 
ary 1948 into 1948 from Boca Raton; isn't that right? 

Mr. Hart. I don't know what you mean by income. There would 
be a 

Mr. Halley. I am talking about gross income. There would be a 
greater volume of receipts. Gross receipts? 

Mr. Hart. Yes. 

Mr. Hali,ey. If you are dealing with an individual business and 
not a partnership, then in your work sheets showing gross income, 
you would have the gross income from the whole book operation at 
Boca Raton and not merely the net profit. 

Mr. Hart. That is what I am testifying that I believe I do have, sir. 
I have no reason to question it. 

Mr. Halley. Yet, if you take your gross receipts for 1948 — what 
are they? 

Mr. Hart. Gross receipts from business were $489,179.42. 

Mr. Halley. And for 1947? 

Mr. Hart. $453,917.14. 

Mr. Haixey. And for 1946? 

Mr. Hart. $410,949.43. 

Mr. Halley. Where are your work sheets showing tlie specific 
expenses at the Boca Raton Hotel ? 

Mr. Hart. I wouldn't have that except on those copies of tax returns 
that I was furnished. 

Mr. Halley. How did you file your 1948 income-tax return 
yourself? 

Mr. Hart. I have that right here. 

Mr. Halley. You have ]3reviously testified that you didn't keep any 
of the books for the Boca Raton ? 

Mr. Hart. That is correct. 

Mr. Halley. Then how could you reflect the Boca Raton income in 
this 1948 income-tax return? 

Mr. Hart. I have answered that question three times. 

Mr. Halley. I would like to have you answer it again, please. 

Mr. Hart. I am of tlie opinion, and I have been told, that the 
receipts from the Boca Raton Club are in these gross receipts in this 
bank account. 

Mr. Halley. That would be gross receipts from the Boca Raton 
Club? 

Mr. Hart. No, sir. I didn't say that. I said that the gross receipts 
from the Boca Raton Club are in these items. 



ORCANIZED CRIME EST ESPTERSTATE COMMERCE 55 

Mr. Haixey. The fjross receipts from the Boca Raton Chib would 
be in the gross items that you have reported here ; is that right? 

Mr. Hart. That is my honest opinion. 

Mr. Hai.lf.y. They woukl all liave been deposited in the Atlantic 
National Bank because that is where all these items come from? 

Mr. Hart. Yes, sir, I believe that to be true. 

Mr. Hali.ey. Do you want this committee to believe that you 
thought that during the years that Mr. O'Rourke was operating at 
Boca Raton his gross income didn't go up at all; that the gross 
amount of bets that he handled didn't ,go up? If you compare your 
gross income for 1948 with the gross income foi- 1047 and for 194G, 
jou will see that it is substantially the same, and I ask you if you 
don't know that the gross income from Boca Raton in 1949 was sub- 
stantially, alone, in excess of $750,000? 

Mr. Hart. No ; I don't know that. 

Mr. Halle Y. If that is the fact, is it even possible that you could 
have reflected gross receipts from Boca Raton in this figure of 1948 
showing total bank deposits of about $552,000? 

]Mr. Hart. It would have been possible to have had $750,000 receipts 
and $552,000 deposits. 

Mr. Halley. The whole theory of your tax returns falls if I am 
right. 

Mr. Hart. No, sir. 

Mr. Halley. You have testified that the bank deposits showed all 
of Mr. O'Rourke's income. That is the theory on which you j)repared 
the tax return ? 

Mr. Hart. That is correct. 

Mr. Halley. And that your tax returns reflect Boca Raton for 1948. 
It is a sheer impossibility isn't it ? 

Mr. Hart. Not that I know of, sir. 

Mr. Halley. How do you find $750,000 in $552,000 ? 

Mr. Hart. I am not trying to find it. You are the one who found it. 

Mr, Halley. You are stuck with it, and what I would like to have 
you reconcile is that that is an honest tax return with the statement I 
have made, and you have to accept my statement that the gross receipts 
for Boca Raton in 1948 were in excess of $750,000. 

Mr. Hart. I have testified regarding the figures I have here, and 
I have told you what they are and what in my opinion they are made 
up of. 

Mr. Halley. Do vou contest my statement that the gross receipts 
for Boca Raton in 1948 were $750,000 ? 

Mr. Hart. I am saying that I clon't know anything about that. 

Mr. Halley. You should know something about it. 

Mr, Hart, All I know is what you have told me, 

Mr. Halley. That is not right. That is not right at all. You 
have seen the partnership returns for Boca Raton. You have told me 
that. That is your testimony. 

Mr. H-:U?T. That is right. I have seen the partnership return. 

Mr. Halley. But somehow or other, you forgot to biing it down 
here. Do you know why ? 

Mr. Hart. I can only say in that respect that it was not intentional. 
I thought I had it with me, and I don't know why I don't have it. 

Mr. Halley. If you have seen it and discussed it in connection with 
an inquiry of the Bureau of Internal Revenue, you must have in mind 

68958— 50— pt. 1 5 



56 ORG'AXIZED CRIME IN INTERSTATE COMMERCE 

the size of the operation at Boca Raton. It must have been very 
forcibly brought to your attention in your discussions with the Bureau 
of Internal Revenue. 

Mr. Hart. No, sir. 

Mr. Hallet. Isn't it a fact that you have already offered to pay 
the Bureau of Internal Revenue a very substantial sum in settlement 
of a claim for additional tax for Mr. O'Rourke ? 

Mr. Hart. Suppose you say Avhether it is a fact or not. 

Mr. Halley. Suppose you do. Suppose you testify by answering 
questions. 

Mr, Hart. It is not a fact 

]\Ir, Halley. You have never offered to pay a substantial sum to the 
Bureau ? 

JNIr. Hart. No sum of any kind, substantial or unsubstantial. 

Mr. Halley. You have been discussing the payment of additional 
sums, have you not ? 

Mr. Hart. No, sir. 

Mr. Halley. Have you had any discussions with the Bureau ? 

Mr. Hart. They examined Mr. O'Rourke's return; the usual dis- 
cussions. 

Mr. Halley. Have they asked for an additional payment ? 

ISIr. Hart. Yes, sir, 

Mr. Halley. Have you flatly refused to make any additional 
payment? 

;^Ir. Hart. They have not asked for an additional payment. They 
have proposed an additional assessment which in the ordinary course 
of business would not be payable until assessed, 

Mr. Halley. Has any discussion taken place in compromise of that 
proposal ? 

JSfr. Hart. Not to my knowledge; no discussions with me were had 
in connection with any compromises, and I have never heard of it. 

Mr. Halley. In looking at that partnership tax return which you 
received and which you asked for, is that your testimony — that you 
asked for it after a dispute arose with the Bureau of Internal Revenue? 

Mr. Hart. That is right. 

Mr. Halley. Then you asked Mr. O'Rourke to get that for you? 

]Mr. Hart. I asked him if there was a partnership return and he 
said he tliought maybe there was that Erickson had entered, and if 
he could find it he would bring it in. 

Mv. Halley. And he brought it ? 

INIr. Hart. Yes, sir, 

Mr. Halley. And when you got it, did you look at it ? 

Mr. Hart. Yes. 

Mr. Halley. Did you notice that the gross income was far in excess 
of the total gross income that you stated in your own return for all 
operations? 

Mr, Hart, Well, I wouldn't say that I did, I think perhaps you 
are confusing gross receipts and deposits, which are not the same 
by any means. That return, I think, showed gross receipts. These 
figures that I am testifying here from my work papers are not neces- 
sarily the gross turn-over or the gross receipts. They are the gross 
deposits. 

Mr. Haeley. What is the difference between gross receipts and gross 
deposits ? 



ORGANIZED CR!IME IN INTERSTATE COMMERCE 57 

Mr. Hart. You might book $6,000 worth of bets and only win $1,000. 
The $1,000 woukl be deposited. Tlie $5,000 you would pay back out. 
I tliink that is where the difference is between the size of these figures. 

Ml'. Halley. If anything, your receipts would be even greater tlian 
your bank deposits and your work sheets should show the receipts. 

Mr. Hart. I don't know whether they should or not. 

Mr. Halley. Are you an accountant ? 

Mr. Hart. Yes, sir. 

Mr. Halley. Don't you think the work sheets should show the gross 
receipts of a business^ 

JNlr. Hart. I think the work sheets I have here are correct. 

Mr. Halley. You say they are correct, but you don't really think 
they are correct. 

j\Ir. Hart. I think they are correct. 

JMr, Halley. How do you reconcile that with the gross receipts 
of the Boca Raton operation? 

Mr. Hart. The gross receipts of the Boca Raton operation are 
undoubtedly set up on a win and lose basis. The gross receipts as I 
show them are really gross receipts less losses. 

Mr. Halley. Let's go over that. Let's take your statement for 
1948. Here are your gross receipts there, $489,109.42 ? 

Mr. Hart. Yes, sir. 

Mr. Halley. What are they ? 

JMr. Hart. That is the 

jNlr. Halley. Are they wins less losses? I think that is what you 
just said. 

Mr. Hart. That is the bank clearances; that is what it is. You 
don't deposit your losses. You may have a $3,000 bank roll, do 
$27,000 worth of business and you may break even. 

]\Ir. Halley. Do I understand 

Mr. Hart. That is not from the gross amount of money taken. 

Mr. Halley. Do I properly understand that the $489,000 repre- 
sents the amount of money O'Rourke won in 1948 ? 

Mr. Hart. No, sir. 

Mr. Halley. You said it was wins less losses. Is that his net win- 
nings for 1948— $489,000? 

Mr. Hart. No, sir. 

Mv. Halley. What is it? 

Mr. Hart. It is his bank deposits. 

ISlr. Halley. That is no answer. You said it represented wins 
less losses. 

Mr. Hart. Each day's deposits — they deposit the checks they take 
in. They may do $10,000 worth of business and wind up with $4,000 
wortli of checks and only make $500 for that matter. 

The Chairman. What is that bank roll listed here ? 

Mv. Hart. That is tlie bank roll, things written in to reimburse the 
bank roll in this business. The cash l)ank roll consistently runs short. 

Tlie Chairman. What is the pay off? 

]\Ir. Hart. That is the payment of bets, or lay-off. Lay-off may be 
there also. 

Tlie Chairman. Then as I understand it, you also have the amounts 
paid off either to lay off or payment of bets? 

Mr. Hart. By check. These are all checks : no cash transactions. 



58 ORG'AXIZED CREVIE EST IN'TERSTATE COMMERCE 

The Chairman. Wliere did you reflect the amount of the bank roll 
that finally came in the fixing up of this 1948 income ? 

Mr. Hart. That is the bank roll which was kept at Boca Eaton ? 

Mr. Chappell. Senator, will you let me say something that might 
clarify the situation ? 

The Chairman. All right, Mr. Chappell. 

Mr. Chappell. As I understand it, O'Rourke was really an agent for 
Erickson in the Boca Katon operation. That is the way I understand 
it. 

The Chairman. Agent for whom ? 

Mr. Chappell. Erickson. 

Mr. Halley. Do you mind my interrupting? I think that if you 
wanti:o testify to that, we will accept your testimony, but I must 
advise you not to testify to it until you know the facts. 

Mr. Chappell. I thought it would clarify it. 

Mr. Hallet. It doesn't clarify it. It contradicts the Imown facts. 
If you want to testify to that so that the record will show that that 
is your version of the facts, we will accept the testimony. 

Mr. Chappell. I think you know as well as I do that I couldn't 
testify to it. 

Mr. Hallet. I think you were confusing the facts because the facts 
are not as you say. 

I am sorry, Mr. Chairman. I have no further questions on this line, 
unless the committee would like to proceed further. 

The Chairman. I wanted to get from Mr. Hart again the sources 
of Mr. O'Rourke's income. 

Mr, O'Rourke had an interest in his partnership in Boca Raton dur- 
ing the time that you have stated ; is that correct ? 

Mr. Hart. I am told that that is correct ; yes, sir. 

The Chairman. And he also had his own crap game in West Palm 
Beach? 

Mr. Hart. He has had. 

The Chairman. Anyway, during the same time or at some time he 
had the operation at Boca Raton, he had a crap game in West Palm 
Beach? 

Mr. Hart. Yes, sir. 

The Chairman. And then he had an orchard or a grove ? 

Mr. Hart. That is one of his investments. I think it is nonpro- 
ductive yet. 

The Chairman. And he also had a furniture and fixtures business ? 

Mr. Hart. No, sir. I think you are looking at the depreciation 
schedule on his tax return. I took depreciation on the furniture and 
fixtures in his place of business. 

The Chairman. Those are the only businesses that you know of? 

Mr. Hart. Yes, sir. 

The Chairman. That you have recited ? 

Mr. Hart. Yes, sir. 

The Chairman. How about that partnership return? You have 
got it somewhere. 

Mr. Hart. I am sure I do have it ; yes, sir. 

The Chairman. How are we going to get an opportunity to see it? 

Mr. Hart. Well, I don't understand why I don't have it with me. 
How would you like to have it ? Shall I make you a copy of it ? Any- 
thing you say. 



iORGA]NnZED CRIME IN INTERSTATE COMJSIERCE 59 

Mr. Halley. I think probably you ought to get it down here just 
as fast as you can— the return itself. It will have to go into evidence. 

Mr. Hart. I will be glad to do that. I don't know why it is not 
here. 

The Chaxrmaist. Mr. Rice will be here, and we will make some 
arrangement for Mr. Hart to give it to him. 

Mr. Halley. Give it to Mr. Rice at the hotel this evening or dur- 
ing the later afternoon if you can get it back here by 3 or 4 o'clock, 
The committee will be in the courthouse here. 

Mr. Hart. I don't see how I can get it back here by that time. I 
have to go up to get it. 

Mr. Halley. In the later part of this afternoon you can deliver it 
to Mr. Rice who is at the McAllister Hotel. 

Senator Hunt. Do you have anyone in your office whom you can 
ask to pick it out and send it on down ? 

Mr. Hart. I wouldn't know where to have them look for it because 
it should have been in the file. It is probably on my desk. It will 
take time to go through the file. 

The Chairman. If you can't find Mr. Rice, Mr. Brown, would you 
be the custodian for it % 

Mr. Brown. I would be glad to. 

Mr. Halley. Also this file stripped down bare of all memoranda, 
correspondence — anything but official papers that you are required to 
keep. 

Mr. Hart. I don't have any correspondence for that man. I just 
simply do his tax work. I have a little correspondence with the 
Treasury Department and that is about all. 

The Chairman. Mr. Hart, did Mr. O'Rourke sign these tax re- 
turns himself? 

Mr. Hart. Yes, sir. 

The Chairman. You didn't sign tliem as the person having pre- 
pared the return for him ? 

Mr. Hart. I guess so. 

The Chairman. How about the partnership return? Does it have 
the person who prepared it on it % 

Mr. Hart. I don't know, but I think so. I think it does. 

The CiL\iR3iAN. Mr. Hart, just in the ordinary run of things, if 
somebody brought a tax return that was in controversy, or a copy 
of one, being a lawyer and an accountant, the first question you would 
ask would be, "Who prepared this?" Wouldn't that ordinarily be 
the first question you would ask ? 

Mr. Hart. I must have asked that question ? 

The Chairman. You must have asked that question. 

Mr. Hart. It doesn't appear to me who prepared it. There it is. 
It has been filed. 

The Chairman. Suppose you wanted to question some figure about 
it, wouldn't you like to know the person who prepared it so you could 
check with him and get some explanation of some of the items? 

]Mr. Hart. Not unless I found it necessary to question it. I would 
just get a co])y of a return, and if I found something wrong with it, 
something I didn't think was right, naturally we would inquire who 
prepared it. 

The Chairman. You have no idea who prepared it ? 



60 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Hart. I tliiiik the return shows. I know tlie orij^inal shows. 

The Chairman. AVhat is your independent idea as to who prepared 
it ? You must have some idea. 

Mr. Hart, Mr. Erickson had it prepared. I suppose his account- 
ants did. I don't know. I didn't do any work for Erickson. I never 
met the man. 

The Ch airman. Is it your understanding that the tax return was 
prepared in New Jersey or New York and sent down to Mr. O'Rourke, 
or that a copy was sent to him ? 

Mr. Hart. Yes, sir. 

The Chairman. How did you get that understanding? 

Mr. Hart. Because 1 got the return from Mr. O'Rourke. He 
brought it to me. 

The Chairman. Why do you think they were prepared in New 
York or New Jersey ? 

Mr. Hart. Because that is where Erickson operates. I suppose 
it is from there. 

The Chairman. Have you had any correspondence with the man 
who prepared it? 

Mr. Hart, No. 

The Chairman. Did you ever see Mr. Erickson? 

Mr. Hart. No, sir; not to my knowledge. I may have seen him, 
but not that I know of. 

The Chairman. Mr, Halley, what other information is in these files? 

Mr. Halley, I want to offer in evidence, so they can be examined 
by the committee after the witness has testified, a box containing 
canceled checks, vouchers, and bank statements. 

The Chairman. It will be received in evidence and made a part 
of the record, 

(Box containing canceled checks, vouchers, and bank statements 
received in evidence as exhibit No, 39A. Later returned to witness 
after analysis by committee.) 

Mr, Halley. I offer in evidence two folders containing income tax 
returns, copies, work papers, and other documents relating to income- 
tax returns of Mr, O'Roui'ke, submitted here by Mr, Hart, 

The Chairman. Let them be marked and received in evidence. 

(Folders of income tax returns, work papers, etc., received in 
evidence as exhibit No. 39B. Later returned to w^itness. ) 

Mr. Halley. And I offer in evidence, as a separate exhibit, but part 
of exhibit No, 39 A, an exhibit comprising 15 checks, either payable 
to or endorsed by or bearing notations with the name "Mickey Cohen." 

The Chairman. Let them be marked and received in evidence. 

(Group of 15 checks payable to or endorsed by Mickey Cohen re- 
ceived in evidence as exhibit No. 39C. Later returned to witness. ) 

The Chairman, I wanted to ask Mr. Hart one or two questions 
about those checks. They may have been asked while I was out of 
the room. 

Senator Hunt. They were not. 

The Chairman. Mr. Hart, do you know how this operation worked, 
this lay-off business ; how these checks happened to be issued to Mickey 
Cohen and to the Atlantic National Bank with Mickey Cohen's name 
on the left of it? 

Mr. Hart. Well, of course I don't have any personal knowledge of 
that, but I am satisfied I know, but I can't swear that I know. 



ORGANIZED CR'IME IN INTERSTAT'E C'OMAIERCE 61 

Senator Hunt. Give us your opinion. 

The Chairman. Tell us what you know about it, 

Mr. Hart. As I understand it, Mickey Cohen telej^honed Mr. 
O'Rourke and <2:ave him some business and they discussed matters and 
Mr. O'Rourke agreed to take some business, and they would have a 
set agreement to pay, whenever either one owed the other as much as 
$5,000, and the settlements always went west. There didn't any of 
them come east. 

The Chairman. You mean that Mickey Cohen would lay off bets 
with Mr. O'Eourke? 

Mr. Hart. I would guess so. I wouldn't know whether it was lay 
off or what it was. 

The Chairman. And the other way around ; Mr. O'Eourke would 
bet with or lay off bets with Mickey Cohen ? 

]Mr. Hart. Yes, sir. 

The Chairman. Is this referring to bets on the horses or is this in 
connection with the Boca Eaton operation ? 

Mr. Hart. Both of those. Boca Eaton is a horse-book operation. 
Those checks are all in connection with bets on horses. 

The Chairman. They haven't anything to do with his crap game 
in West Palm Beach ? 

Mr. Hart. No, sir. 

The Chairman. There is one check in particular that I want to get 
your explanation of, and that is the check dated October 17, 1947, 
payable to the Atlantic National Bank and made by John F, O'Eourke. 
In the left-hand corner is a notation "Mickey Cohen B." How was 
that check cashed ? It has no endorsement. 

Mr. Hart. That was the initial settlement, I believe, and that was 
cashed and the money sent by Western Union to ]Mickey Cohen. I 
believe that is correct on that check. 

The Chairman. Then Mr. O'Eourke apparently took this check to 
the Atlantic National Bank and withdrew the money in cash, desig- 
nating that it was withdrawn in order to get it to Mickey Cohen, and 
apparently he took the cash and sent it to Mickey Cohen by Western 
Union ? 

Mr. Hart. I think that is correct. 

The Chairman. That check was never sent through the mails to 
Mickey Cohen, was it? 

Mr. Hart. No, sir. 

The Chairman. Eeferring here to the check of October 17, 1947, 
which apparently is the same date as the check we have been referring 
to, check No. 127, there is a check of $3,495, payable to Mickey Cohen 
with a little notation "B" in the upper part, and signed or made by 
John F. O'Eourke. That check bears the endorsement of Mickey 
Cohen and Michael Cohen. Apparently it was deposited m the 
Hollywood-McFadden branch of the Citizens'-something bank in Los 
Angeles, Calif. ; is that correct ? 

Mr. Hart. I think so ; yes. 

The Chairman. How about the checks that Mickey Cohen sent to 
Mr. O'Eourke? 

Mr. Hart. Well, I don't know whether Mickey Cohen was smarter 
than Mr. O'Eourke or whether he had some hot horses but there were 
never any checks that came that way. 



62 ORG!A]SnZED CRIME IN ESTT'ERSTATE COMMERCE 

The Chairman. So that check would have been sent through the 
mails? 

Mr. Hart. That is right. He got him hooked at the start and kept 
him hooked. 

The Chairman. Mr. O'Ronrke would bet on horses in California 
and would bet through Mickey Cohen and he always lost ; is that the 
way it was, or a lay-off proposition ? 

Mr. Hart. No, sir. Mickey Cohen did most of the betting with 
him and his horses won. 

The Chairman. Where is the record of the transactions of the bets 
between John F. O'Rourke and Mickey Cohen ? 

Mr. Hart. I never have seen any. These are the settlements. 

The Chairman. There would have to be some way of keeping up 
with them. These are very substantial amounts of money that they 
have been passing around. 

Mr. Hart. Evidently they do keep it. 

The Chairman. Here is one check dated June 7, 1948, No. 292, made 
out to cash in the amount of $5,000. That one is endorsed by Lyle 
Woodhall; is that correct? 

Mr. Hart. Yes, sir. 

The Chairman. Is that for the purpose of getting money and send- 
ing it out by Western Union to Mickey Cohen ? 

Mr. Hart. There was one sent by Western Union and one sent by 
cashier's check, I believe, and I don't know which is which, to tell 
you the truth, but this man who endorsed this check is Mr. O'Rourke's 
cashier. 

The Chairman. Lyle Woodhall? 

Mr. Hart. Yes, sir. 

The Chairman. "Wliat is this notation in the upper left-hand 
corner ? 

Mr. Hart. The B means bank roll, and the C means Mickey Cohen. 

The Chairman. You are satisfied that these checks or the proceeds 
from these checks were sent to Mickey Cohen ? 

Mr. Hart. I have no reason to doubt it. 

The Chairman. Anyway, you reported it in the work sheets or 
income tax as disbursements ? 

Mr. Hart. That is right. 

The Chairman. Did you check the Western Union records to see 
whether they had been sent ? 

Mr. Hart. No, sir. During the course of this income-tax examina- 
tion, the revenue agents checked that and gave me the information. 

Senator Hunt. Are these both Mr. O'Rourke's signatures? They 
obviously are not the same handwriting. So which is his signature ? 

The Chairman. For the record, we are comparing checks Nos. 155 
and 127. 

Mr. Hart. I think they are both his. 

Senator Hunt. These signatures appear to be entirely different. 

Mr. Hart. I don't see much difference. It is a different pen, but I 
am sure that is all Mr. O'Rourke's writing. It is written apparently 
with a heavier hand or a different pen, but I believe those are both 
his writing. 

Senator Hunt. There is a difference in the F. 

Mr. Hart. That is the only difference I see — in the F. You take 
the R. It is a peculiar R and it follows right straight through. 



ORGANIZED CR'IME IN INTERSTATE COMMERCE 63 

Senator Hunt. I am not a handwriting expert, but I don't see any 
similarity about them. 

The Chairman. Is there anything further? 

]\Ir. H ALLEY. I have one or two questions further. Would you 
explain the items listed under "bank roll"? What is the bank roll? 
I am now referring to the 1948 work sheets. 

Mr. Hart. Those are the funds from which they pay their losing 
bets. 

Mr. Halley. Is that a cash fund ? 

Mr. Hart. Yes, sir. 

Mv. Halley. I presume that at the beginning of the year, January 
1, 1948, Mr. O'Rourke started out with a certain amount of money in 
cash which he calls his bank roll ; is that right? 

Mr. Hart. That is right. 

Mr. Halley. And as it is diminished, it is replenished with cash 
drawn from the bank by check ? 

Mr. Hart. Yes, sir, 

Mr. Halley. For example, you show here payments to the bank roll 
of $5,000, $3,000, $5,000, $2,000, and so on down the line, making a total 
of payments to the bank roll of $221,400; is that right? 

Mv. Hart. That is right. 

Mr. Halley. AVhat was his original bank roll as of January 1, 1948 ? 
What did he start with? 

Mr. Hart. Apparently there was no change from 1947. I will have 
to determine it. Apparently there was no change from 1947. 

Mr. Halley. How much did he have in this cash bank roll on Janu- 
ary 1, 1948 ? 

'Mr. Hart. The standard bank roll has been $3,000. 

Mr. Halley. Do you mean that that is the capital that he uses? 

Mr. Hart. Tliat is the bank roll he handled for the cashier. 

IMr. Halley. Does he have a bank roll at the book as well as at the 
crap game? 

Mr. Hart. They use the same one. They use it in the book in the 
daytime and the crap game at night. 

Mr. Halley. And when the bank roll needs more money, a check is 
just made, cash is taken out and put in the bank roll ; is that right? 

Mr. Hart. That is right. 

Mr. Halley. How do you know that the money that goes into the 
bank roll is actually paid to pay losses in gambling? 

Mr. Hart. I haven't said I did know. 

Mr. Halley. Is there any way anybody in the world would know 
that Mr. O'Rourke is not putting that money in his pocket, or some 
substantial amount which in 1948 amounted up to $221,400 ? 

Mr. Hart. I don't know how anyone would know. 

Mr. Halley. I have no other questions. 

The Chairman. With regard to these checks to replenish the bank 
roll, how would they be made ? Cashed and the money taken out of the 
bank? 

Mr. Hart. Cashed at the bank. 

The Chairman. That would be done by Mr. O'Eourke himself? 

Mr. Hart. He writes the checks and may send somebody to cash 
them. 

The Chairman. May send his cashier around ? 



64 ORGANIZED CEIIME IN INTERSTATE COMMERCE 

Mr. Hart. Or some other employee who is available at the time. 

The Chairman. Are there any records at Boca Raton or at the dice 
game to show that these replenishments, as represented by checks, were 
actually receipted into the bank roll? 

Mr. Hart. I don't think so. 

Mr. HaiXey. Don't you keep the betting sheets ? 

Mr. Hart. I probably had the betting sheets, but they sure don't 
keep them. 

Mr. Halley. What do they do with them ? 

Mr. Hart. They are destroyed. 

Mr. Halley. Each day? 

Mr. Hart. I think daily. 

Mr. Halley. What motive would they have to destroy them if 
these are honest records that we have been talking about ? 

Mr. Hart. They have frequent raids by the law-enforcement officials 
and they don't like to have these records around as evidence to be 
picked up by a J. P. or constable or whoever comes in to raid the place. 

The Chairman. In what county is Palm Beach or West Palm 
Beach? 

Mr. Hart. Palm Beach County. 

The Chairman. Wlio is the sheriff up there ? 

Mr. Hart. John Kirk. 

The Chairman. How long has he been the sheriff ? 

Mr. Hart. Maybe 3 or 4 years. 

The Chairman. This dice game in West Palm Beach is something 
anybody can walk in to that wants to play ? 

Mr. Hart. I think it was ; yes, sir. 

The Chairman. And the Boca Raton operation was something that 
anybody out there who wanted to participate could participate in? 

Mr. Hart. I have never been there. I don't know a thing about it, 
really. I don't know where it was operated. 

The Chairman. That is all. 

Senator Hunt. Mr. O'Rourke carried on his book operations to a 
considerable extent with telephone service, didn't he ? 

Mr. Hart. During the times when his front door was locked, he 
did some telephone business, and these big transactions with Mickey 
Cohen where he lost pretty near everything he had was by telephone. 

Senator Hunt. Someone would telephone in a bet and if he hap- 
pened to win, Mr. O'Rourke would need to pay him. What process 
would he use in paying him? Would he send cash by messenger or 
woidd he make him call and collect the bet or write him a check and 
mail him his winnings ? 

Mr. Hart. Well, most of the checks that are written are to pay 
bets from out of town. The local people who bet over the telephone 
and win come in the next day and collect. 

Senator Hunt. Those checks that went out of town, of course, 
would go through his checking account and would go through your 
accounting in making up his income tax? 

Mr. Hart. That is right. 

Senator Hunt. That is all. 

The Chairjvian. With regard to these local people who would call 
up — say John Jones would call up and want to bet $10 on a certain 
horse, would Mr. O'Rourke take the bet when Mr. John Jones would 
put his money up, or would it be on credit? 



ORGANIZED CRIME IN INTERSTAT'P COMMERCE 65 

Mr. Hart. At the moment it would be on credit. If he lost he would 
either come and pay, or they would come out to collect. If he won 
they usually made him come after it. 

The Chairman. Suppose Mr. O'Rourke ^ot a bet of $10,000 or $12,- 
000, too big an amount for him, would that be when he would lay some 
of it off to some other man? 

Mr. Hart. Yes ; either a big bettor or a lot of little bettors whenever 
he got more on a particular horse than he could carry. 

The Chairman. Who would he lay off to? 

Mr. Hart. Sometimes he would lay it off locally. 

The Chairman. Mention one name. Mr. Chappell mentioned one 
that lived in Miami. 

Mr. Halley. Luke Church. 

Mr. Hart. He laid off bets to him, and there are others, but I just 
don't remember the names. 

The Chairman. He lays off with Frank Erickson ? 

Mr. Hart. He might. 

The CiiAiR]\rAN. He might lay off to Mickey Cohen ? 

Mr. Hart. Mickey Cohen's operations might have been lay off; 
yes, sir. ' _ ^ 

The Chairman. That is all. 

Mr. H ALLEY. Thank you. 

Senator Hunt. I want to ask you a few questions. These checks 
are most interesting because of the tremendous amounts involved 
and being a one-way street apparently on which Mr. O'Rourke never 
won. 

Would you be in a position to tell us whether or not Mr. O'Rourke 
was made to remit these moneys because of any threats within gang- 
land, so-called? 

Mr. Hart. I never heard of any such things ; no, sir. He took the 
bets and he lost and he paid off. Gamblers have a sort of code of 
ethics of their own and they trust one another and if they lose they 
pay off. 

Mr. Halley. What happens if they don't pay off, if the trust doesn't 
work ? 

Mr. Hart. I have never known of a local instance where anything 
happened where he wasn't paid off. I don't think I know of a bet 
where a book didn't pay off. There has been a few colored-town opera- 
tions where there were some mysterious shootings reputed to be caused 
by bets not being paid off on bolita. 

Mr. Halley. Isn't it a fact that you don't live long in the gambling 
business if you don't pav off? 

Mr. Hart. I presume that is true. 

The Chairman. Did Mr. O'Rourke have a policy operation or a 
numbers racket or any connection with that ? 

Mr. Hart. No, sir. 

The Chairman. During any of the times that you kept his records ? 

Mr. Hart. No, sir ; not that I know of. 

The Chairman. Was it brought out how many telephones he had 
in the Boca Raton operation, or do you know ? 

Mr. Hart, No, sir ; I don't know. 

The Chairman. All right. Is there anything further ? 

Mr. Halley. Not of this witness. 

The Chairman. Thank you, Mr. Hart. 



66 ORGIANIZED CRIME IN INTERSTATE COMMERCE 

TESTIMONY OF JOHN F. O'EOURKE, WEST PALM BEACH 

Mr. Halley. What is your address, Mr. O'Kourke? 

Mr. O'RouRKE. 521 Second Street. 

]Mr. Halley. Do you have a x^lace of business ? 

Mr. O'RouRKE. I did have. 

INIr. Halley. Where was it ? 

Mr. O'RouRKE. It was in the Datura Arcade. 

The Chairman. This is in West Palm Beach ? 

Mr. O'RouRKE. That is right. 

The Chairman. Mr. O'Rourke, will you rise and be sworn? 

Do you solemnly swear that the testimony you will give tlie com- 
mittee will be the truth, the whole truth, and nothing but the truth, 
so help you God ? 

Mr. O'RouRKE. I do. 

Mr. Halley. Wliat business did you have there ? 

Mr. O'Rourke. Bookmaking. 

Mr. Halley. You said it has been closed ? 

Mr. O'Rourke. Yes; but we sneak a lick with a customer once in 
a while. 

Mr. Halley. You say they cut your wire off ? 

Mr. O'Rourke. We lost it. 

Mr. Halley. What wire did you have ? 

Mr. O'Rourke. I don't know w^iere that wire came from. As far 
as I know, it was the one that was leased. 

Mr. Halley. Who did you lease it from ? 

Mr. O'Rourke. I couldn't tell you the name of tliat company to 
save my soul. 

Mr. Halley. I think you had better tell us the name of the com- 
pany. 

Mr. O'Rourke. I will find out and tell you, but I swear I can't give 
you the title of it. 

Mr. Halley. How long did you have the wire? 

Mr. O'Rourke. I guess the wire I had 6, 7, or 8 years. 

Mr. Halley. And who cut it off ? 

Mr. O'Rourke. I imagine the State did. 

Mr. Halley. When you originally got the wire, who did you see; 
who did you talk to ? 

Mr. O'Rourke. That has been so long ago — I think it changed 
hands since then. 

Mr. Halley. Wlio did you talk to then ? 

Mr. O'Rourke. I just can't remember. I don't remember who it 
was. In fact, I can't recall who it was. I think it was in 1932, if I 
remember right. 

Mr. Halley. Can you give the name of anyone with whom you 
dealt in connection with that wire ? 

Mr. O'Rourke. Yes ; I can give you a man, a fellow by the name of 
Burns. 

Mr. Halley. You paid off a man by the name of Burns: is that 
right? 

Mr. O'Rourke. Yes, sir. 

Mr. Halley. What is his full name? 

Mr, O'Rourke. Dave. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 67 

Mr. Halley. David Burns? 

Mr. O'KouRKE. Yes, sir. 

Mr. Halley. Where does he live ? 

Mr. O'RouRKE. I think he lives in Miami. 

Mr, Halley. Wliere do you pay him ? 

Mr. O'RouRKE. He comes around to the place to collect the money. 

IVIr. Halley. He comes to your place of business to collect ? 

Mr. O'RouRKE. That is rio;ht. 

Mr. Halley. Do you pay him by clieck or in cash ? 

JNIr. O'EouRKE. By check. 

Mr. Halley. Supposing something goes wrong with the wire, to 
whom do you complain ? 

Mr. O'RouRKE. I don't handle that, to be frank with you. AVe 
don't have any operation witli the wire. As far as that is concerned, 
it is more or less comes through — I don't fool with it. I don't com- 
plain of operating it or fool with it. I don't know who the man who 
operates it calls. I guess he calls some serviceman. 

Mv. Halley. Let's quit beating around the bush. Isn't it a fact 
tliat you are protecting the people who are furnishing you with the 
wire { 

Mr. O'RouRKE. I can't answer truthfully because I don't handle 
that part of it. 

Mr. Halley. You just in your own way, without my trying to ask 
a lot of questions tell this committee where you get your wire serv- 
ice — from whom and what the arrangements are. 

]Mr. O'RouRKE. I told you — Mr. Bui-ns comes around and collects 
twice a week and as far as me knowing the title of the company or 
who lias the contract or anj^thing about that, I can't tell you truth- 
fully because I don't know. 

Mr. Halley. Where can you find Mr. Burns in Miami ? 

Mr. O'RouRKE. I don't know his address. 

]\Ir. Halley. You mean a man whom you don't know where to locate 
comes to your place of business twice a week to collect money? 

Mr. O'RouRKE. No ; they don't come twice a week. Sometimes once 
a month. That is when we were operating ; maybe once ever 2 months, 
maybe he comes tAvice a week or twice a month. 

Mr. Halley. For whom did Mr. Burns work? 

Mv. O'RouRKE. I can't tell you that. I guess he comes from the 
people who had the wire. 

Mv. Halley. Don't you know that? 

Mr. O'RoiKKE. I know you people know the name of it, but I can't 
recall. If I did, I would give it to you, honestly. 
'' Mr. Halley. Did you ever have a contract for the use of the wire ? 

Mr. O'RouRKE. No contract. 

Mr, Halley. An oral agreement? 

Mr. O'RouRKE. Yes, sir. 
^■^ Mr. Halley. Wliat were the terms of the agreement ? 

INIr. O'RouRKE. Only so much a week. In the summer we pay $50 
a week, and maybe in the winter it M'ent up to $125 a week. 

Mr. Halley. Is that the fact; is that your best recollectio.J 

Mr. O'RouRKE. In certain months during the summertime, when it 
was busy, we paid $75 a week, and it would go up with the season. 

Mv. Halley. Who would fix the amount ? Would Mr. Burns come 
in and tell you what you were going to pay ? 



68 ORGlAISriZED CHIME IN INTERSTAT'E COMMERCE 

Mr. O'RouRKE. He would say, "John, we are going to raise the price 
now. It is $150," or whatever it was. 

Mr. Halley. Did you ever argue about it ? 

Mr. O'RouRKE. No, I never did. 

Mr. Halley. Did the repair man come from time to time to fix 
the wire? 

Mr. O'RouRKE. The wire was not directly in the place. Some re- 
pairman must have come in — I don't handle that at all. 

Mr. Halley. Who handled the wire at your place of operations ? 

Mr. O'RouRKE. There isn't any individual that handles it at my 
place of operations. If you want me to explain it, I will give you the 
whole detail. 

Mr. Halley. I would appreciate it. 

Mr. O'RouRKE. For the Senators' benefit and for the committee's 
benefit, I have nothing to hide on it. 

In West Palm Beach, the wire service comes in into a central office, 
and we have a broadcasting system that runs out there through a 
speaker, just like you run a speaker from this room to over there. 
That is the way it is handled. 

Mr. Halley. Where is the central office? 

Mr. O'Rourke. It doesn't come directly into the place. 

Mr. Halley. "Wliere is the central office? 

Mr. O'Rourke. Evidently the central office is not there now. 

Mr. Halley. Where was it last? 

Mr. O'Rourke. Last it was in a room across in the Datura Arcade 
from where I am in another room. There were several books run 
there that were getting this information and we run the wire speakers 
out from there. 

Mr. Halley. Where did the service come from? Did it come up 
from Miami? 

Mr. O'Rourke. I can't swear to that, but I can give you my opinion 
if you want it. I can't swear because I don't know. I think it was a 
leased wire from one end of the State to the other, but I can't swear 
to it. I am just paying them off as a service. 

Mr. Halley. What is your present business ? 

Mr. O'Rourke. I am not doing anything. I am looking for a job. 

Mr. Halley. '^Vlien did you last run a book ? 

Mr. O'Rourke. You mean an open place ? 

Mr. Halley. Open or closed. 

Mr. O'Rourke. I still take a few bets on horses now. 

Mr. Halley. In West Palm Beach ? 

Mr. O'Rourke. Yes. Any time a friend calls me up and I have 
friends who want to bet on a horse. 

Mr. Halley. Do you do that by telephone ? 

Mr. O'Rourke. Not necessarily. I haven't a telephone in my place. 

Mr. Halley. How do you get the business ? You said "any time a 
friend calls me up." 

Mr. O'Rourke. Calls me at home or anywhere else, or if I see him on 
the street or run in to him. 

Mr. Halley. Where do you lay off your bets now ? 

Mr. O'Rourke. I don't get that much business. 

Mr. Halley. You don't lay off at all ? 

Mr. O'Rourke. No. 



ORGANIZED CMME IN INTERSTATE COMMERCE 69 

Mr. Halley. When did you last operate openly ? 

Mr. O'RouRKE. I think it was around February a year ago ; around 
that time. 

Mr. Halley. February of 1949 ? 

Mr. O'RouRKE. Yes. Eight after this State administration went in. 
I remember it was shortly after that. It was around February. I 
am quite sure. It was right after the State administration 

Mr. Halley. They shut you down ? 

Mr. O'EouRKE. No ; it was a local situation more or less. You know 
how local things are. 

Mr. Halley. I think the committee would like to know a little more 
about how this particular situation worked. 

Mr. O'EouRKE. It was just one of those things; everything went 
down. We just were — the wire service was closed up. 

Mr. Halley. Who did it? The sheriff? 

Mr. O'Eourke. The sheriff didn't do it. 

Mr. Halley. Who closed up your place ? 

Mr. O'Eourke. It was closed up on account of — one part about it 
was on account of the grand jury session ; the grand jury investigating. 

]VIr. Halley. The grand jury ? 

Mr, O'Eourke. Yes ; they are still hot now. 

Mr. Halley. Wlio runs the grand jury ? Is there a district attorney ? 

Mr. O'Eourke. State's attorney. 

Mr. Halley. For the county ? 

Mr. O'Eourke. Yes. 

]\Ir. Halley. And when they started, everybody stopped open oper- 
ations ? 

Mr. O'Eourkje. Yes. We operate at the discretion of the people. 

j\Ir. Halley. Was anybody arrested? 

Mr. O'Eourke. I was. 

Mr. Hatjle. Were you convicted ? 

Mr, O'Eourke. No. 

Mr. Halley. Was anybody else arrested? 

Mr. O'Eourke. No. 

Mr, Halley. What happened to your case ? 

Mr. O'Eourke, It was a funny situation. It is on record, I hap- 
pended to be attacked by the flying squad. 

Mr, Halley, Wlio are the "flying squad"? 

Mr. O'Eourke. The beverage department. 

Mr. Haley, Is that the State beverage department? 

Mr. O'Eourke. Yes, sir. 

Mr. Halley. What would they be doing in a gambling place? Were 
you also selling liquor? 

Mr, O'Eourke, No, In fact, we were practically closed at that time 
when they came in, but they had a little stand in there that sold beer, 
and that carries a liquor license. Just bottled beer. 

Mr, Halley, You were arrested for selling beer? 

Mr, O'Eourke. That is to give them the privilege of coming in, 

Mr. Halley^ Then you were arrested for making a book; is that 
right ? 

JNIr, O'Eourke, Yes, 

Mr. Halley. Is that case still pending? 

Mr. O'Eourke. No. That case was thrown out on account of a search 
warrant. 



70 ORGAAnZED CRIME IN m'TERSTATE COJVEVIERCE 

Mr. Hallet. What judge? 

Mr. O'RouRKE. Justice of the peace. 

Mr. Halley. What is his name? 

Mr. O'RouKE. Harper. 

Mr. Halley. Do you know his full name ? 

Mr. O'RouRKE. No. They call him "Sleepy." 

Mv. Halley. "Sleepy'' Harper? 

Mv. O'RouRKE. Yes. 

Mr. Halley. In West Palm Beach ? 

I^Ir. O'RouRKE. Yes, sir. He ran for the legislature at that time. 

Mr. Halley. Let's go back to the good old days in 1948. You were 
operating wide open then ; were you not. 

Mv. O'RouRKE. That is right. 

Mr. Halley. Nobody arrested you? 

Mr. O'RoLRKE. No. ^ 

Mr. Halley. You had no trouble then ? 

Mr. O'RouRKE'. No. I don't know of any at that time. 

Mr. Halley. Wliat business were you operating in 1948 ? 

Mr, O'RouRKE. In what way do you mean? 

Mr. Halley. You had certain gambling operations in 1948. Would 
you specify what they were ? 

Mr. O'RouRKE. I was running a book, and I had a night crap, game 
I'unning, too. 

Mr. Halley. Both in West Palm Beach? 

Mv. O'Rourke. Yes, sir. 

Mr. Halley. Any other operations? 

Mr. O'RoLTRKE. Well, if you call agents out in a hotel which I 
included in the book 

Mr. Halley. Would you specify what those agencies were? 

Mr. O'Rourke. Only one, in the Boca Raton Club. 

]Mr. Halley. Any others? 

Mr. O'Rourke. No ; not as I can recall now. 

Mr. Halley. The Roney Plaza ? 

Mr. O'Rourke. No, sir. 

Mr. Halley. No other hotels? 

Mr. O'Rourke. No. 

Mr. Halley. How did you happen to go into the Boca Raton? 

Mr. O'Rourke. Well, it is a funny story there. It seems that most 
of the hotels were having books in them and the management wanted 
to put in a book down there. 

ISIr. Halley. Do you mean Mr. Schine ? 

Mr. O'Rourke. Yes, sir. And for entertainment of customers, and 
it was kind of isolated, and I went down and talked to him. 

Mr. Halley. How did you jfind out that the management wanted 
to put a book in ? 

^Ir. O'Rourke. He contacted me. 

Mr. Halley. Mr. Schine contacted you ? 

Mr. O'Rourke. Yes. 

Mr. Halli:y. Did he phone you ? 

Mr. O'Rourke. Yes. 

Mr. Halley. Mr. Schine personally telephoned you? 

Mr. O'Rourke. I can't swear to that, but he had someone in his 
hotel, the manager or someone like that. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 71 

Mr. Halley. You are talking about Mr. Scliine Sr. ? 

Mr. O'RouRKE. Yes, sir; Morris. 

Mr. Halley. And you went down to see liini at the Boca Raton? 

Mr. O'RouRKE. That is right. 

Mr. Halley. What was the conversation? What year was this? 

Mr. O'RouRKE. 1947, I think it was. I was there 2 years. 

Mr. Halley. Started in the fall of 

Mr. O'RouRKE. The first year — what year was it that — this is 1950 — 
1949— it was 1947 or 1948. 

Mr. Halley. You saw him at the hotel ? 

Mr. O'RouRKE. Yes, 

Mr. Halley. That would be in the fall of 1947? 

Mr. O'RouRKE. That would have been, if I would recollect, before 
the Christmas holidays. 

Mr. Halley. Would you tell the committee what he said to you 
and what you said to him? 

Mr. O'RouRKE. The conversation, the best I can recollect, would be 
like this: Boca Raton had quite a reservation list and it was iso- 
lated — nothing but cabanas and a golf course — and he figured if I 
could or would entertain the idea he would like to have someone run 
a book there for his customers in the afternoon. 

Mr. Halley. Did you discuss terms and rents to be paid to the 
hotel? 

Mr. O'Rourke. He discussed them more frequently than I did. 

Mr. Halley. Did he get a cut of the profits { 

Mr. O'RouKKE. No, sir; he didn't. He was cold-blooded. I tried 
to make him that proposition, but I didn't get it. 

Mr. Halley. Didn't he want to take a cut i 

Mr. O'RouRKE. No, sir. 

Mr. Halley. What did he get? 

Mr. O'Rourke. a straight fee. 

Mr. Halley. How much ? 

Mr. O'RoURKE. I can't recollect that. The checks will show that 
because it was a pretty good amount. 

Mr. Halley. How did jNIr. Frank Erickson get into that deal, too? 

Mr. OTvouRKE. I will tell you how that was, too: In talking to 
Mr. Schine, he said — in fact, the deal was too much for me to handle 
for the price tliat he asked, and I said, "I just can't go for it because 
I am not that kind of man," and he said, "I w^ould like to do it," and 
I said, 'T would like to, but I can't consider it," and I never met Mr. 
Erickson and didn't know of him. I knew of him by reputation, and 
he said, "Maybe you can work it around to where it won^t be so tough 
on you," so he gave me Mr. Erickson — where Mr. Erickson was, and 
I don't know if he made an appointment or if I made an appointment. 
He was stopping in Miami at the Roney Plaza Hotel, and I said that 
I would go down and talk to him. So, I went down and talked to him 
and he said, "John, if you want to take a gamble on it, I will go with 
you." That was practically the substance of the conversation. 

Mr. Halley. You were in as 50-50 partners ? 

Mr. O'Rourke. That is right, because up there there were some 
customers that I couldn't have handled anyway and that was the 
whole situation. If we weren't 50-50 partners, I wouldn't hardly go 
in, because I couldn't takp. the situation at that price we were paying, 

68958— SO—pt. 1^—6 



72 ORGAJSnZED CRIME IN INTERSTATE COMMERCE 

and he said, "Maybe we will make some money and maybe not; but if 
you are willing, I will go into it with you." 

Senator Hunt. Do you remember what the price was? What was 
the office cost per month ? 

Mr. O'RouRKE. This was on a season basis. 

Senator Hunt. Would it be $100 or $1,000 a month % 

Mr. O'RouRKE. Not per month. If I remember right, it was right 
around— I don't know— $27- or $25- or around $20,000. 

Senator Hunt. $20,000 for the season ? 

Mr. O'RouRKE. $20,000 for the full season. 

Senator Hunt. And you made the check to Mr. Schine ? 

Mr. O'RouRKE. To the Boca Raton Club. 

Mr. Halley. In your bookmaking business, did you lay off your bets 
with anyone ? 

Mr. O'RouRKE. Very seldom. Sometimes I received bets from 
them, but I always ran my business this way and tried not to take any 
more than I could handle myself, but sometimes I would make per- 
sonal bets myself — if you call that laying off; and again, if you have 
a friend that maybe wants to bet a little money and you didn't want 
to hold it or maybe I want to bet on his horse or make a bet, too. 

Mr. Halley. Who would you lay off to ? 

Mr. O'RouRKE. Mostly around town; the local boys around town. 

Mr. Halley. Could you name the people ? 

Mr. O'RouRKE. Mr. Risdon, Mr. McRichie. 

Mr. Halley. What are their full names ? 

Mr. O'RouRKE. Joe Risdon. 

Mr. Halley. In Miami or West Palm Beach ? 

The Chairman. Wliat about Tracy ? 

Mr. O'RouRKE. Matty? 

Mr. Halley. Also West Palm Beach? 

Mr. O'Rourke. Matthew J. Tracy. He is from West Palm Beach. 

Mr. Halley. Did you ever lay off with Luke Church in Miami ? 

Mr. O'Rourke. Not directly to him. 

Mr. Halley. How would that come about ? 

Mr. O'Rourke. That would go to a fellow, but not very much lay 
off, either. At one time I did, too. It was through Dick Evans. 

Mr. Halley. You mean througii Dick Evans you laid off to Luke 
Church? 

Mr. O'Rourke. No. I think, if I remember right, it may be that 
Luke Church was working for Dick Evans. They had some con- 
nection ; but, so far as Luke Church was concerned, I wouldn't know 
him if he walked into tlie room, but I knew Dick very, very well. 

Mr. Halley. Wliere is Evans ? 

Mr. O'Rourke. He is dead now. 

Mr. Halley. Where was he? 

Mr. O'Rourke. He was in Miami. 

Mr. Halley. Did you ever lay off with Erickson ? 

Mr. O'Rourke. Never did any business with Erickson. Never, 
made an out-of-town bet with Erickson in mv life. The only trans- 
action with Erickson was with the Boca Ratoii Club. 

Mr. Halley. On the Boca Raton Chib you actuallv ran the book? 

Mr. ORouRKE. No; he had a man there". 



ORGANIZED CEIIME IN INtTERSTATE COMMERCE 73 

Mr. Halley. He had a man there? 

Mr. O'RouRKE. Yes. 

Mr. Halley. Did you have a man there or were you there yourself ? 

Mr. O'RouRKE. I don't think I made two trips down there the whole 
season. 

Mr. Halley. Did you have a man there ? 

Mr. O'RouRKE. Yes. 

Mr. Halley. How many men did you have there? 

Mr. O'RouRKE. We hired some fellows around the club. We had 
some cabana boys and a locker-room boy. 

Mr. Halley. Who did Erickson have there ? 

Mr. O'RouRKE. Erickson had a man by the name of Steve Mauro, 
I think his name was. 

Mr. Halley. How do you spell Mauro ? 

Mr. O'RouRKE. I think he was Italian — M-a-u-r-o. 

Mr. Halley. Did you do any business with Mickey Cohen? 

Mr. O'Roukke. Yes, sir. 

Mr. Halley. Would you describe the circumstances? 

Mr. O'RouRKE. I hate to tell you because it was disastrous, but I 
will tell you what happened. Mickey called me — this was before he 
got a lot of publicity — I think the records show, he called me and said, 
"Do you want to take some business ?" 

I said, "Who in hell are you ?" 

He said, "Mickey Cohen from Los Angeles." 

He asked if he could bet on some California horses and I said, "No, 
only Florida," and he said, "All right," and I said, "I will have to 
investigate you." 

I did, and the only thing I was interested in finding out was finding 
out if his credit was fairly good and if it was reliable. 

Mr. Halley. Had vou lieard of him before ? 

Mr. O'RouRKE. No"; I hadn't. 

Mr. Halley. You never heard of him ? 

Mr. O'RouRKE. Never. 

Mr. Halley. He called you out of a clear blue sky with no intro- 
duction ? 

Mr. O'Rourke. Yes ; out of a clear blue sky. 

Mr. Halley. Did you ask him how he had heard of you ? 

Mr. O'RouRKE. I didn't ask him that. 

Mr. Halley. How did he know you were operating in West Palm 
Beach ? 

Mr. O'RouRKE. I don't know how, but news gets around pretty fast. 

Mr. Halley. What was the news that got to Los Angeles about 
you ? 

Mr. O'RouRKE. I don't know how he got it there. 

Mr. Halley. Did it strike you as funny as it strikes me ? 

Mr. O'Rourke. It strikes me as funny as it does you, but it hap- 
pened that I have some relatives in California and I called them up. 

Mr. Halley. Did they recommend him ? 

Mr. O'Rourke. No ; they didn't recommend him. He has got a little 
reputation, but he has a reputation of paying. I said, "That is all 
that is necessary for me, I will take a shot at him, and I will see if he 
is hot or if he is cold." 

Several days later he called me and said, "If you want some busi- 
ness I can give you some business. I want to bet on some California 
horses." 



74 ORCANIZED CRIME IN INTERSTATE COMMERCE 

T said, "I don't go for any California horses. It is too damned 
close to the race track for me." 

He said, "I will give yon some eastern horses," and I said, "All 
right," and we did business, and if I remember right, we would settle 
on maybe if I owed him $5,000 or if he owned me $5,000, we would 
settle on tliat basis. I never did catch him. 

Mr. Halley. Did you place any bets with him ? 

]\Ir. O'RouRKE. Only personal bets ; maybe some times. I remember 
one day he hit me a pretty good lick, and I grabbed the racing form 
and tried to pick me one to get even. That was all I did. I was trying 
to get out. 

Mr. Halley. How^ much monev did you bet with Mickey Cohen ? 

Mr. O'RouRKE. I don't think I bet $1,500. I don't think I really 
bet that much with him on my bets with him. 

Mr. Halley, On one occasion or all together ? 

]Mr. O'RouRKE. I think maybe one afternoon I might have either — 
no, that was different $100- and $200-bets. If I remember right, I gave 
liim very few bets. 

Mr. Halley. Was he betting his own money, or laying off to you ? 

Mr. O'RouRKE. That I couldn't say, but from our conversation, I 
imagine he was doing a little betting himself. 

Mr. Halley. Did he pick a great many winners ? 

Mr. O'RouRKE. The checks will show he did. I know I cut him 
off pretty damned quick. 

Mr. Halley. You cut him off ? 

Mr. O'Rourke. Yes, sir. 

Mr. Halley. You ran almost a year with him, didn't you ( 

Mr. O'EouRKE. No ; I don't think so. 

Mr. Halley. I have the checks here starting in October of lO-tT and 
running through November 1948. 

Mr. O'RouRKE. Well, that may be true, but some of that business 
was some money that I owed him and stood him off until I could 
pay him. 

^Ir. Halley. On November 27, 1948, there are two $2,500 checks. 

Mr. O'RouRKE. Yes, sir. 

Mr. Halley. Is that money you had owed him ? 

IMr. O'Rourke. Yes, sir. 

Mr. Halley. How long can you get along owing money to Mickey 
Cohen ? 

Mr. O'Rourke. I don't know. 

Mr. Halley. How had you owed it to him ? One of these checks is 
November 1 and the other one is November 15. 

Mr. O'RouRKE. That is right. 

]Mr. Halley. Was that paying a single item for $5,000? 

Mr. O'RouRKE. That is right. 

Mr. Halley. In June of 1948 you paid him $5,000. That you didn't 
owe him ^ 

Mr. O'RoURKE. I think that was some of the balance due. We 
miglit have done business for 6 or 7 or 8 months. 

Mr. Halley. Right at the start he w^on a good deal of money from 
you in 1947? 

Mr. O'RouRKE. That is right. 

JMr. Halley. And you kept on doing business? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 75 

:\rr. O'RouRKE. No ; I cut liim down. I was trying to get my money 
back. Instead of taking maybe $400 or $500 on a horse, I would take 
$100 or something like that. 

Mr. Hali.ey. These checks are for rather large sums of money. Do 
they represent the accumulation of a considerable number of bets? 

Mr. O'RouRKE. Yes, 

Mr. Halley. They weren't big bets of $10,000? 

Mr. O'RouRKE. Nothing like that. I don't think his top bet would 
be over $300 or $400 ; maybe on an even money shot or a 2 to 1 shot 1 
would handle $500. 

Mr. Halley. He would lose some of them. He never w^on them 
all, did he? 

Mr. O'Rourke. Sure, he'd lose some. I have had him hooked be- 
fore and he sent me a check. 

Mr. Halley. Who kept the arithmetic on all of these $100 bets 
back and forth ? 

Mr. O'Rourke. We would make a sheet on it and send it out. 

Mr. Halley. Where are those sheets now? 

Mr. O'Rourke. I don't know. They are destroyed. 

Mr. Halley. Who destroyed them ? 

Mr. O'Rourke. After that raid and all of that up there, I think a 
lot of it dissipated. 

Mr. Halley. Did you keep them until the raid? 

Mr. O'Rourke. No; I don't think so. After I settled up on the 
amounts and stuff and made the checks out, I don't think I kept any 
of those records. It w^as made on a slip like that [indicating]. 

Mr. Halley. Before you sent him a check, would you call him up 
and say. "Look here. This is what I owe you" ? 

Mr. O'Rourke. He always called me. 

Mr. Halley. He would keep a record and you would keep a record ? 

Mr. O'Rourke. That is right. 

JNIr. Halley. And then there would be a phone call ? 

Mr. O'Rourke. He would call me. If we bet today, tomorrow 
mornino- or tomorrow afternoon he would call to see if we checked. 

Mr. Halley. Did you balance your credits and your standing 
practically every day l3y telephone ? He would be calling every day ? 

Mr. O'Rourke. That is right. 

Mr. Halley. Each day you compared ? 

Mr. O'Rourke. Yes. We would put the balance at the top and 
start another day. 

Mr. Halley. And you ripped up those sheets ? 

Mr. O'Rourke. Yes. We didn't keep them. 

Mr. Halley. You did a lot of business in 1948, didn't you? You 
handled a lot of money ? 

Mr. O'Rourke. I guess I did. 

Mr. Halley. Almost over $750,000 at the Boca Raton place alone? 

Mr. O'Rourke. I don't know the exact figure there. 

Mr. Halley. Well, there was a lot of money. 

Mr. O'ROURKE. They made some good business. I think they did 
handle some business there. 

Mr. Halley. Some very substantial business ? 

Mr. O'Rourke. Yes, sir. 



76 ORGAN^IZED CKIME IN mTERSTATE COMMERCE 

Mr. Halley. And the records show it to be over $750,000 in a 3- 
month season. You wouldn't be surprised if the records showed that, 
would you ? 

Mr. O'RouRKE. No ; I don't think so. I don't know if it was or not. 

Mr. Halley. Do you know whether it sounds reasonable to you? 

Suppose I told you that between January and April, a period of 
just 3 months, there were gross receipts of at least$ 750,000. Would 
that surprise you ? 

Mr. O'RouRKE. It might at that. The only thing I was keeping was 
the winning and losing account. 

Mr. Halley. What would you do ? Were you the operator or did 
Frank Erickson come in and check up there on the people who were 
there each day ? 

Mr. O'RouRKE. Frank had his man and he would check each day. 

Mr. Halley. You have to watch people pretty carefully to see 
that they don't put their friends in on some bets after the race is over, 
don't you ? 

Mr. O'RoTJRKE. I don't think men of his type would do that. 

Mr. Halley. Men of whose type ? 

Mr. O'RouKKE. Erickson. He is a legitimate bookmaker. 

Mr. Halley. Do you consider Erickson a legitimate bookmaker? 

Mr. O'RouRKE. He is an honest man. 

Mr. Halley. How you mean "legitimate" ? You don't mean that he 
operates within the law, do you ? 

Mr. O'RouRKE. I don't think he would take advantage of me or you 
or anybody else in the business and do an underhanded trick like that. 

Mr. Halley. I was talking about something else. You have em- 
ployees operating at the hotel ? 

Mr. O'RouRKE. Yes. 

JNIr. Halley. And they were taking bets ? 

Mr. O'RouRKE. Yes. 

Mr. Halley. And paying off for you ? 

Mr. O'Rourke. Yes. 

Mr. Halley. You are not there every minute yourself, are you ? 

Mr. O'Rourke. I was not there at all. 

Mr. Halley. Never? 

Mr. O'Rourke, No. Maybe once or twice during the whole season, 
but I never did go around the place. 

Mr. Halley. Who actually operated it? 

Mr. O'Rourke. Mauro. Mauro was running it. 

Mr. Halley. And your part was just furnishing half the capital? 

Mr. O'Rourke. Well, when we started off, there was not much 
financing to do. 

Mr. Halley. For what reason did Erickson need you? 

Mr. O'Rourke. No particular reason. I was around in Boca Raton, 
and I was taking bets around the locker house and stuff like that — 
small bets— and then Schine approached me. That was when I turned 
the proposition down because it looked like it was too much for me 
to handle and then the subject of Erickson came up. 

Mr. HATJ.EY. From Schine? 

Mr. O'Rourke. That is right. 

Mr. Halley. Then Mr. Schine provided half the capital? 

Mr. O'Rourke. Schine didn't. 



ORGANIZED CHIME IN INTERSTATE COMMERCE 77 

Mr. H ALLEY. I mean Erickson. 

Mr. O'RouRKE. Erickson would stand good for it. 

Mr. Halley. Did you get reports each day of the operations, or 
each week ? 

Mr. O'RoTJRKE. Only win and lose. 

Mr. Halley. Each day? 

Mr. O'Rourke. That is right. 

Mr. Halley. What did you do with them ? 

Mr. O'Rourke. I would mark it down and keep a record of it. Like 
maybe a fellow would bring you a check to pay a bet, or I would get 
a check for $8,000 or $9,000 and I deposited it in my account. 

Mr. Halley. Who kept the records for that ? 

Mr. O'Rourke. Mauro did. 

Mr. Halley. Who kept the bank roll for it ? 

Mr. O'Rourke, Mauro. 

Mr. Halley. Who kept the bank account for it ? The commercial 
bank? 

Mr. O'Rourke. No. Only the checks that came in, I deposited them. 

Mr. Halley. You would put in all the checks that were brought to 
you from Boca Raton ? 

]Mr. O'Rourke, That is right, in my account. 

Mr. Halley. Mauro would bring them to you ? 

Mv. O'Rourke. That is right. I would put them through the bank 
roll to pay off. Then I would write a check and put it in. 

Mr. Halley. Wliat accounts are you referring to? 

Mr. O'Rourke. Personal account. 

Mr. Halley. At the Atlantic National Bank ? 

l\h\ O'Rourke. My bank account; my account. 

]Mr. Halley. Was there a lot of cash bet at Boca Raton ? 

Mr. O'Rourke. Considerable. 

Mr. Halley. So that most of the betting at Boca Raton was by 
check ? 

Mr. O'Rourke. Most of it was by check. 

Mr. Halley. Was the pay-off in cash or by check? 

Mr, O'Rourke. Sometimes I wrote a check. Maybe some people 
I would give cash, or do it on exchange, like people win today and lose 
tomorrow, or sometimes you carry a man on account until he check 
out — stuff like that, and at the end of the day maybe he would be win- 
ners, but he didn't get the money, but the guest is still there, and 
maybe he would lose $500 today or tomorrow, and that would go as 
winnings to me. At the end of the season, when he checked out after 
a 2 weeks' stay, he may owe me or I may owe him, and whenever that 
check came in, I deposited it. 

Mr. Halley. These checks went into your account ? 

Mr. O'Rourke. That is right. 

Mr. Halley. What work did Mauro have to do ? 

Mr. O'Rourke, He kept the winnings and losings. 

Mr. Halley. Each day? 

Mr. O'Rourke. Yes. 

Mr. Halley. What did he do with the winnings and losings? 

Mr, O'Rourke. Checks or anything he turned over to me for de- 
posit. 

Mr. Halley. What did he do with those that he would get each day ? 



78 ORG'AXIZED CRIME IN mTERSTATE COMMERCE 

Mr. O'RouRKE. I don't know. He gave me a report at the end, which 
I mailed to New York. 

Mr. Halley. Who made the income tax return for the operation at 
Boca Raton ? 

Mr. O'RouRKE. For who ? 

Mr. Halley. The partnership. 

Mr. O'RouKKE. I didn't make any partnership return. 

Mr. Halley. The partnership return was made by Erickson's 
accountant ^ 

Mr. O'RouRKE. That is right, Later. I didn't know they were going 
to make a partnership return. 

Mr. Halley. Wliere did Erickson's accountant get the figures ? 

Mr. O'RouRKE. From Mauro, I guess. 

Mr. Halley. And he showed a certain amount of profit and a cer- 
tain amount of loss in that partnership return ? 

Mr. O'RouRKE. That is right. 

Mr. Halley. Wlien did you get your share of the profits ? How did 
that work ? 

Mr. O'RouRKE. The first year, I believe, I owed them the difference 
between the deposits of the checks, if I remember correctly — the checks 
that I deposited in the bank — the difference between that — Erickson 
had some coming and I think I gave him a check for that. 

Mr. Halley. I am completely lost in this accounting. I don't even 
begin to see how you did it. Let's try to work it out. 

Let's say here is a Boca Raton man comes in and bets $1,000. 

Mr. O'RouRKE. Yes, sir ; for the day ? 

Mr. Halley. Yes, and at the end of the day he is loser by $900. 

Mr. O'Rourke. Yes. 

Mr. Halley. He settles up at the end of the day ; is that right ? 

Mr. O'Rourke. Not necessarily. 

Mr. Halley. What happens to the $900 that the customer owes at 
the end of January — say January 4, 1948? 

Mr. O'Rourke. January 4, 1948, if I remember, they carried this 
this way, to the best of my recollection : you said that they paid that 
that day? 

Mr. Halley. Yes. 

Mr. O'Rourke. You say he lost $900. That Avould have been turned 
in as a winner for $900, because you have to take it as a winner that 
day. But the man doesn't pay but he owes you $900 and it is an 
account you carry from day to day. Now, at the end of his time 
there, or at the end of the season he may win or lose — win two or three 
times. 

The difference between his winnings and losses, if he wants to settle 
his account — it would probably be either a check or cash to him, or 
check, whichever he wanted. But this winner is going down, and tliey 
balance — from day to day. 

Mr. Halley. That is pretty complicated bookkeeping. 

Mr. O'Rourke. No, sir. It is a record between winnings and losses. 

Mr. Halley. That is a lot of figures that you have to keep. 

Mr. O'RoiRKE. No. 

Mr. Halley. You have his winnings and losses; is that right? 

Mr. O'Rourke. Say today he owes you $900 and tomorrow he owes 
you $400 — that is $1,300 he owes you. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 79 

Mr. Halite Y. And then if the customer wins the next day $900 or 
$1,000 he owes you only $300. 

Mr. O'RouKKE. We have to win some days. Then this brings it 
back to $900, so you lose $900, and if he wants cash I give him cash, 
or a check. 

Mr. Haeley. What happens if I give you a check? 

Mr. O'RouRKE. Giveg me a check ? 

Mr. Halley. If I gave a check to Mauro who was running the game 
on the premises, what would he do with the check ? 

Mr. O'RouRivE. Give it to me. 

i\Ir. Halley. Invariably ? 

Mr. O'RouRKE. That is right. 

Mr. Halley. And it would go into your account in the Atlantic 
National Bank ? 

Mr. O'RouEKE. That is right. 

Mv. Halley. Suppose Mauro got cash instead of a check? 

Mr. O'Rourke. It would go in the bank roll. 

Mr. Halley. Would he give you a statement of what was in the 
bank roll at the end of each day ? 

Mr. O'Rourke. Not winners and losers. I would know exactly how 
much is there because the checks he gives me — if I can explain it. For 
example, say he gives me $5,200 worth of checks. I deposit those. 
Then I have up here the winners and losers, say $500. All right. 
That is the winners and losers. Maybe here he is giving me more 
checks over here, so I owe him money. At the end of the season there 
will be a balance here, which means I deposited more checks in my 
account than I had coming. 

Mr. Halley. As your share of the cut ? 

]\Ir. O'Rourke. If I remember right, I give him a check for the 
difference. 

Mr. Halley. How much of a check did you give Mr. Erickson ? 

Mr. O'Rourke. I don't remember. I think it was around $3,000 
or $4,000. 

Mr. Halley. Do your deposit slips show which deposits came from 
the crap game and which came from the book and which came from 
Boca Raton ? 

Mr. O'Rourke. No, sir. 

Mr. Halley. It is all together in one big unidentifiable group ? 

Mr. O'Rourke. That is right. It is all run in together. 

Mr. Halley. On the cash side of it, there is no record whatsoever 
to show where the cash came from ? 

Mr. O'RoiTRKE. On what? 

Mr. Halley. Where you take your wins and losses and put them 
into your bank roll, there is no record to show that the cash came 
from any particular transaction or not, is there ? It is simply a bank 
roll which is large or small. 

Mr. O'Rourke. No, sir. All that was deposited was checks. 

Mr. Halley. And there is no way in the world that anybody could 
check up to find out whether the figure is right or wrong? 

Mr. O'Rourke. No ; I don't know that he could or not. In the book 
we cash a lot of local checks — payroll checks and stuff like that as an 
accommodation, and especially on Saturdays maybe a fellow, after 
banking hours, has to leave town and has to have some money for a 



80. ORGANIZED CRIME IX LS'TERSTAT'E COMMERCE 

ticket and stuff like that. As an accommodation we had a check- 
cashing proposition. Other times we have a lot more checks to cash 
and you have to refurnish the bank roll. 

Mr. Halley. Do you have a safe-deposit box? 

Mr. O'RouRKE. Yes, sir. 

Mr. Halley. In what bank? 

Mr. O'RouRKE. In the Atlantic National Bank. 

Mr. Halley. Any other box? 

Mr. O'RouRKE. No, sir. 

Mr. Halley. One box in the Atlantic National Bank ? 

Mr. O'Rourke. Yes, sir. 

Mr. Halley. Do you own any real estate? 

Mr. O'Rourke. I own ni}-^ house. 

Mr. Halley. Where is the house ? 

Mr. O'Rourke. 521 Twenty-eighth Street. 

Mr. Halley. Do you own any other businesses ? 

Mr. O'Rourke. No. 

Mr. Halley. Or property? 

Mr. O'Rourke. No. I am buying a little piece of property on a 
contract — a mango grove, and I pay $225 every quarter. 

Mr. Halley. What is the total cost of the mango grove ? 

Mr. O'Rourke. I think around $4,000 or $5,000. 

Mr. Halley. In 1948, your own records show, you banked approxi- 
mately $500,000, and that your total income for the year was only 
something like $1,700. 

Mr. O'Rourke. That is the year I took that beating. 

Mr. Halley. Is that the year you took the beating from Mickey 
Cohen ? 

Mr. O'Rourke. Yes, and I think I mortgaged my stocks and bonds 
and everything else. 

Mr. Halley. Is that how you account for the sad situation in 1948 ? 

Mr. O'Rourke. Yes, sir. 

Mr. Halley. What was your net income in 1947 ? 

Mr. O'Rourke. I don't know. You must have it there. 

Mr. Halley. Did you have any very unusual losses in 1947, or was 
that a normal year ? 

Mr. O'Rourke. 1947? 

Mr. Halley. Yes. 

Mr. O'Rourke. I don't know. I think I had some fairly good 
losses in there, too ; whatever the checks would show there. On those 
bank deposits, we cashed a lot of checks, naturally, and people there 
would even send up payrolls to cash. We did a lot of cashing of 
checks, so that runs your deposits up quite a bit. 

Mr. Halley. I don't understand. Do you mean that your bank 
deposits in the Atlantic National Bank reflect other than your income 
from your business? 

Mr. O'Rourke. Those deposits are not all income. 

Mr. Halley. Then you must have lost. I think perhaps the Gov- 
ernment owes you a lot of money, then, because by your bank deposits 
apparently considering them all as income, your accountant arrived 
at a gross income figure. Is it your position that this gross income 
figure is wrong ? 

Mr. O'Rourke. No. 



ORGANIZED CRIME IN INTERSTATE C'OMMERCj: 81 

Mr. Hali.ey. You say you have cashed a lot of checks. How many 
checks would you cash in a week, on the average? 

Mr. O'RotTEKE. I have no way of estimating, 

Mr. Halley. a thousand ? 

Mr. O'RouRKE. Maybe more than that. 

Mr. Halley. Two thousand ? 

Mr. O'RouRKE. Maybe more than that. 

Mr. Halley. So that if your total deposits were $552,000, would 
you say that it is conceivable that as much as $100,000 might repre- 
sent simj^ly checks cashed as an accommodation ? 

Mr. O'RouRKE. I couldn't tell you the truth what it might be. 

Mr. Halley. Make an estimate, please. 

Mr. O'RouRKE. I don't know. 

Mr. Halley. $50,000? 

Mr. O'KouRKE. I don't know exactly. If a man would come to me 
and say, "John, cash me a $100 check. I have to catch a plane," or 
maybe he couldn't get to the bank, or maybe they would send a nigger 
up with a bunch of payroll checks because the banks are all closed. I 
would cash them for him. That is an accommodation. 

The Chairman. The question is: Are those checks listed? 

Mr. O'RouRKE. Yes, sir. They are all in there. 

Mr. Halley. Would vou say in a single year they would total at 
least $10,000? 

Mr. O'RouRKE. They would run much more than that. 

Mr. Halley. At least $50,000 ? 

Mr. O'RouRKE. I imagine more than that. 

Mr. Halley. $100,000? 

Mr. O'RouRKE. I can't estimate that. 

Mr. Halley. They run at least $50,000 ? 

Mr. O'RouRKE. I imagine they would. 

Mr. Halley. In any given year when you were operating; is that 
right? 

Mr. O'RouRKE. Yes, sir. 

Mr. Halley. And $50,000 would be a low figure rather than a high 
figure ? 

Mr. O'RouRKE. I don't know that. That is just 

The Chairman. Those are checks that had nothing to do with bet- 
ting? 

jNIr. O'RouRKE. That is right. Of course it doesn't mean they were 
all accommodation propositions. Senator, but there were a lot of 
them that way. There were very few checks I would take on bets, 
unless it was from out of town and most all of them were personal 
checks ; people I know around town there. 

Mr. Halley. Would you have for your crap game and your 

Mr. O'RouRKE. I cashed for a lot of people checks — unemployment 
checks from the Government, that they didn't have bank accounts, 
and some of the banks would charge them 25 cents and things like 
that. If you know them, you cash it for them. 

Mr. Halley. Did you charge for cashing checks ? 

Mr. O'RouRKE. No. 

Mr. Halley. Even payroll checks ? 

Mr. O'RouRKE. No. 

Mr. Halley. No charge ever ? 

Mr. O'Rourke. No, sir. 



82 ORGAJSriZED CRIME IN INTERSTAT'E CO]\IMERCE 

Mr. Halley. You have a bank roll, do you not, when you operate 
your games ? 

Mr. O'RouKKE. Yes. 

Mr. Halley. Do you make it a practice of keeping a certain amount 
of money in the bank roll ? 

Mr. O'RouRKE. We try to keep it around $5,000. It varies from 
$2,500 up to $7,500, and with the action back and forth, checks would 
go back and forth. 

Mr. Halley. When the bankroll went down, you would draw checks 
from the bank? 

Mr. O'Rourke. That is right. 

Mr. Halley. Cash a check and take the cash and use that for your 
bankroll ? 

Mr. O'Rourke. Yes, sir. 

Mr. Halley. And what record did you keep of the use to which 
you put the cash withdrawn from the bank and put in the bankroll? 
Do you keep a book showing disbursements out of the bankroll ? 

Mr. O'Rourke. No disbursements outside of the bets would be made 
by the bankroll. 

Mr. Halley. You kept betting sheets ? 

Mr. O'Rourke. No; just a ticket; just a pad like that — maybe 2 or 
3 inches wide and maybe 4 inches long. 

Mr. Halley. What did you do with those sheets after you paid the 
bettor or took his money? 

Mr. O'Rourke. We kept them in the cashier's, in a drawer with the 
winners and losers. 

Mr. Halley. Where is the sheet now ? 

Mr. O'Rourke. I don't know. 

Mr. Halley. What happened to them? 

Mr. O'Rourke. Destroyed them. 

Mr. Halley. Did you destroy them? 

Mr. O'Rourke. They were put out a long time ago. All I kept up 
there one time — I kept those sheets for 6 or 7 years and it was in the 
old post office. I had a truckloacl of them. I kept them up because they 
are not in any form. They are not tied together. They are plain 
pieces of paper w^ith a rubber band around them, and when we changed 
location, nobody ever came in to look around or anything so I just 
told the boys to carry them out and throw them in the incinerator 
because there was a stack as high as from here to there. 

Mr. Halley. You have none any more? 

Mr. O'Rourke. Not any more. 

Mr. Halley. Wlien you had your accountant work up your figures 
for each year, did you give him those sheets for the year ? 

Mr. O'Rourke. No. 

Mr. Halley. Why not? 

Mr. O'Rourke. He didn't ask for them. 

Mr. Halley. Did you tell him there were such sheets ? 

Mr. O'Rourke. I was always told to deposit all checks I received; 
don't cash any checks for cash ; put them all in and if I needed to re- 
plenish the bankroll, take it. 

Mr. Halley. You didn't deposit the cash you received? 

Mr. O'Rourke. Tlie cash? I think those checks the cashier cashed. 

Mr. Halley. When you would win a cash bet. that cash went into 
the cash bankroll ? 



ORGAXIZED CR'IME IN INTERSTATE COMMERCE 83 

Mr. O'RouRKE. That is right. 

Mr. Hallp:y. And it was not deposited in the bank? 

Mr. ORouRKE. No ; these checks were all cashed. 

Mr. Hallf.y. You kept no cash book showing receipts of cash ? 

Mr. O'RouRKE. No. 

Mr. Halley. I have no further questions. 

The Chairman. I have one or two questions. Do you want to ask 
some now. Senator Hunt? 

Senator Hunt. No, sir. 

The Chairman. Mr. O'Rourke, this Mr. Schine that you talked to, 
is he the one that owns the McAllister Hotel here in Miami ? 

Mr. O'Rourke. I don't know if he owns the McAllister. I under- 
stand he owns the Roney. 

The Chairman. How long had you known Mr. Schine when he 
called you to come to see him? 

Mr. O'RouRKE. I had never met him. 

The Chairman. Did you ever meet Mickey Cohen ? 

Mr. O'RouRKE. Never seen him in my life. 

The Chairman. What was your first transaction with Mickey 
Cohen ? 

Mr. O'RouRKE. How it came about? 

The Chairman. Yes. 

Mr. O'RouRKE. Just repeating, he called me one day on the phone 
and asked me if I wanted some business, and I told him I would never 
turn down any business. 

The Chairman. Do you know how he got your name ? 

Mr. O'RouRKE. No ; I can't tell you that. 

The Chairman. Assuming that Mickey Cohen would call and want 
to place a bet, how long would that be before the race would take 
place? 

Mr. O'RouRKE. Probably anywhere from 5 to 20 minutes. 

The Chairman. That would be on some race at Hialeah or Tropical 
Park out here ? 

Mr. O'RouRKE. I don't know if he bet much on any Florida races. 
I think it was more the eastern tracks. I don't know because Florida 
was running most of the time. 

The Chairman. Anyway, you would take a bet on any track he 
wanted to place it on? 

Mr. O'RouRKE. Not on California. 

The Chairman. Was the pay-off on the basis of the pari-mutuel 
pay? 

Mr. O'RouRKE. Yes, sir. 

The Chairman. That is the way you figured it? 

Mr. O'RouRKE. Yes, sir. 

The Chairman. You referred to the partnership that you had with 
Erickson at Boca Raton. When did you first start doing business 
with Mr. Erickson ? 

Mr. O'RouRKE. If I remember right, I did business with him 2 
years. It must have been '47 and '48. 

The Chairman. Did he have any interest in your dice game that 
you had in West Palm Beach? 

Mr. O'RouRKE. No interest whatever in anything. 

The Chairman. The only connection you had with Mr. Erickson, 
according to your testimony, was at Boca Raton? 



84 ORGAN^IZED CRIME IN IIS^ERSTATE COMMERCE 

Mr. O'RouRKE. That is absolutely right. 

The Chairman. Wlieii was the hrst you knew he had made out a 
partnership income tax return ? 

Mr. O'RouRKE. It was some time during the summer, after he left 
herQ. He sent me a copy of the partnership return that had been 
turned in and I think, if I remember right — — 

The Chairman. Did you have that when Mr. Hart made out your 
personal income tax return? 

Mr. O'RouRKE. No, sir, it came later. 

The Chairman. You turned that over to Mr. Hart, did you? 

Mr. O'RouRKE, Yes, sir. 

The Chairman. Later on? 

Mr. O'KouRKE. Yes, sir. 

The Chairman. Did you use a separate bankroll for the operations 
at Boca Eaton and also for your crap game ? 

Mr. O'RouRKE. You mean as cash? 

The Chairman. Yes. 

Mr. O'RouRKE. Yes, sir, it was separate cash. 

The Chairman. The two businesses were not interlocked insofar 
as the personnel of the operation were concerned, except yourself? 

Mr. O'RouRKE. No. We had diiferent personnel down there. 

The Chairman. You took checks or profits from both operations 
and put them in the same bank account ? 

Mr. O'RouRKE. Yes, sir. 

The Chairman. JNIr. O'Rourke, how do you pay off for protection 
for your operations ? 

Mr. O'RouRKE. I don't know there was any protection. 

The Chairman. You can't operate a place like that in violation 
of the law unless somebody knows about it. Who did you pay off? 

Mr. O'EouRKE. I didn't pay anybody off. 

The Chairman. Mr. O'Roiirke 

]Mr. O'RouRitE. I have friends in politics. I have been in Florida 
ever since 1919. 

The Chairman. Mj question was : Who did you pay off for your 
protection in Palm Beach? 

Mr. O'RouRKE. As far as protection. I may give a little for cam- 
paigns and stuff like that, but that is all. 

The Chairman. How much for campaigns, sa}', in 1948? 

Mr. O'RoTJRKE. 1948 ? I don't think it would run inuch in an elec- 
tion. I don't remember of any election in 1948. 

The Chairman. The sheriff's election? 

Mr. O'RouRKE. No, it doesn't make any difference, sheriff or any- 
body come along — ^maybe $100 or $150 or something like that. It 
is a donation. 

The Chairman. In cash? 

Mr. O'RouRKE. Sometimes it takes care of a little advertising in 
maybe the newspapers or something like that. 

The CHAiR:i\rAN. Cash ? 

Mr, O'RouRKE. Not to them, workers and things like that. 

The Chairman. Was it cash that you paid out ? 

Mr. O'RouRKE. Oh, yes; a little out of my pocket. 

The Chairman. Out of the bank roll ? 

Mr. O'RouRKE. No, sir; mostly out of my pocket. 



ORGANIZED CRIME IN INTERSTATE COMIVIERCE 85 

The Chairman. You didn't give any checks? 
Mr. O'RouRKE. No, sir. 

The Chairman. How much would your contributions for ad vert is- 
ino; or wliat not be in the year, say, 1948? 

Mr. O'RouRKE. I don't think, Senator, honestly that it would run 
very much ; maybe $1,500 or $2,000 for different things. 

A lot of times they come around and tell you they have a little pro- 
gram and things like that and you do favors for them like that. 

The Chairman. Mr. O'Rourke, my question to you was: Who did 
you make these payments to ? 

]Mr. O'RouRKE. Senator 

The Chairman. Did you make a payment to the sheriff or to some- 
body on behalf of the sheriff? 

Mr, O'RouRKE. No, sir ; never had an agent, never paid an agent. 

The Chairman. How about the sheriffs 

yiv. O'RouRKE. I didn't pay no sheriff. 

The Chairman. You didn't pay, but just a little contribution — a 
small amount? 

Mr. O'RouRKE. At election time I would help out in my way, get 
out and work and do things like that. 

The Chairman. Now about the money? 

Mr. O'RouRKE. Very little donations on that end of it. I may have 
given a little money. 

The Chairman. To the sheriff's committee? 

Mr. O'RoLRKE. No, the Democratic committee, the executive com- 
mittee organization — things like that, or campaigns like that. 

The Chairman. Did you make any record of what you gave ? 

Mr. O'RouRKE. No ; I did not on personal donations. 

The Chairman. Your dice game was wide open for anybody to come 
in to, wasn't it ? 

Mr. O'RouRKE. Yes, sir. 

The Chairman. How long did you operate that ? 

Mr. O'RouRKE. I don't know, maybe 3 or 4 years. 

The Chairman. Did you ever get raided until you were closed up 
finally? 

Mr. O'RouRKE. No, sir. 

The Chairman. For being in violation of the law ? 

Mr. O'RouRKE. No, sir. 

The Chairman. Who did you talk to about not closing you up ? 

Mr. O'RouRKE. I didn't talk to anyone in particular. 

The Chairman. I know, but who in general? Who did you talk 
with in general or in particular about giving you protection so you 
wouldn't be closed up ? 

]Mr. O'RouRKE. I don't think, Senator, that that atmosphere was to 
anyone's discredit. It was more or less of a liberal community. 

The Chairman. Mr. O'Rourke, you don't just operate a dice game 
•wide open in a town in violation of the law for 3 or 4 years unless you 
have some understanding about it. Who was it that' you talked with 
in general or in particular ? 

Mr. O'RouRKE. I don't remember talking to anybody in general or 
particular about it. 

The Chairman. Did you talk to anybody about it ? 

Mr. O'Rourke. There was a boy when I went into the dice game. 
He run a dice game and I went in bank roll with him. 



86 ORG'ATSriZED CRIIVIE IN ESTTERSTATE COMMERCE 

The Chairman. Wliat has that to do with whom you talked? 
About using the bank roll with somebody else ? 

Mr. O'RouRKE. I don't know. 

The Chairman. Mr. O'Rourke, I am afraid you are not answering 
the committee very fairly. It is our job to find out just how opera- 
tions like yours operate without being closed up and what influence 
with the local enforcement officers there is. How did you get by all 
of this time without being closed up ? 

Mr. O'RouRKE. I think more or less the reason I got by was being 
local, being around the town for years, and in business there for 
many years. 

The Chairman. Wlio was your sheriff in 1948 ? 

Mr. O'RouRKE. The same one as now. 

The Chairman. What is his name ? 

Mr. O'RouRKE. Kirk. 

The Chairman. K-i-r-k? 

Mr. O'RouRKE. Yes, sir. 

The Chairman. Do you know him? 

Mr. O'RouRKE. Yes, sir. 

The CocAiRMAN. Did you contribute to his campaign ? 

Mr, O'RouRKE. I went out and worked for him as much as I could. 

The Chairman. Did you contribute to his campaign? 

Mr. O'RouRKE. A little on the side ; not directly to him. . 

The Chairman. How did you contribute ? 

Mr. O'RouRKE. I don't think I put in $500 in it. 

The Chairman. Do you think you put in $500 ? 

Mr. O'RouRKE. I might have around a few different spots. 

The Chairman. To whom did you give it ? 

Mr. O'RouRKE. Hired a workers' group and give them maybe $10 
to talk or maybe place cards. 

The Chairman. Who did you give the big sums to ? 

Mr. O'RouRKE. Not in his election I didn't give no big sums. 

The Chairman. Did you have a talk with the sheriff before the 
campaign about the fact that you were going to help him ? 

Mr. O'RouRKE. No, sir; I did not. In fact, the sheriff was an old 
ex-ballplayer and I played ball with him for years, and the first time 
he ran, I was against him and this time I was for him. 

The Chairman. You don't think all this work and this $500 that you 
put in the sheriff's campaign had anything to do with your staying 
in business? 

Mr. O'RouRKE. No ; I don't. I think if he had a complaint or war- 
rant or anything else he would have taken legal action. 

The Chairman. Who was tlie mayor of West Palm Beach in 1918 ? 

Mr. O'RouRKE. I don't know who it was in 1918. 

The Chairman. Who is the mayor now ? 

Mr. O'RouRKE. Mr. Keating. I don't even know him. 

The Chairman. When did he come in ? 

Mr. O'RouRKE. He came in about 2 weeks ago. 

The Chairman. Who was the mayor just before he came in office? 

Mr. O'RouRKE. The mayor was a man by the name of Holland. 
I don't even know him. I met him one time. 

The Chairman. Who is the head of the police department in West 
Palm Beach? 

Mr. O'RouRKE. Matthews. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 87 

The Chairman. How long has he been there? 

Mr. O'RouRKE. I think he has been in a little over 2 years, if I 
remember right. 

The Chairman. Do you know him? 

Ml-. O'KouRKE. Not very intimately. I know his family and I knew 
his old dad very well, but this young boy — I don't know him. 

The Chairman. How was he selected ? 

Mr. O'EouRKE. He is elected by the people. 

The Chairman. Did you help him in his campaign? 

Mr. O'RouRKE. No. 

The Chairman. You didn't have any workers out for him ? 

Mr. O'RouRKE. No, sir. In fact, I was then for the man he beat. 

Senator Hunt. Mr. Hart made your personal income-tax return 
and then later you received the partnership return from Mr. Erick- 
son and you handed that to Mr. Hart. Did you make a supplementary 
personal tax return showing some $34,000 of your profits from your 
partnership ? 

Mr. O'RouRKE. No, sir; I didn't. 

Senator Hunt. You didn't do that ? 

Mr. O'RouRKE. No, sir. It was included in the whole blanket thing. 
I don't know" why Mr. Hart didn't. I turned it over to him. It was 
a complicated affair. 

Senatoi- Hunt. Has anything been said about not doing it? 

]Mr. O'RouRKE. They have not. 

Senator Hunt. They probably will, don't you suppose ? 

Mr. O'RouRKE. Yes, sir ; I believe they will. 

Senator Hunt. Why don't you beat them to it and attend to it 
and save yourself a penalty ? 

Mr. O'RouRKE. I have intended to do that, and I expect I will do 
it. After he filed that, if I recollect, I think Mr. Hart said, "Maybe 
we'll be penalized by it." He filed the report and sent it in later after 
we filed our report. 

Senator Hunt. Didn't you know that you had those earnings? 

Mr. O'RouRKE. It was in my original report. 

Senator Hunt. In your personal return? 

Mr. O'RouRKE. Yes, sir ; in the blanket report. 

Mr. Halley. You have just contradicted yourself. First you said 
it was not included and then you said it was included. 

Mr. O'RouRKE. I don't mean it was not included. What I say is — I 
put mine all together in one report. I didn't itemize it separately as a 
partnership. 

Mr. Halley, As I remember, your return is not in accordance with 
the facts. 

The Chairman. I want to ask this question, Mr. O'Rourke : Were 
you asked with whom you laid off bets? 

Mr. O'Rourke. Yes; I believe I was. 

The Chairman. How do you know the people who you can lay off 
bets with? 

Mr. O'Rourke. I don't think — I haven't laid many bets off. 

The Chairman. When j'ou want to lay bets off, how do you know 
who to get in touch with? 

Mr. O'Rourke. For the last several years, I knew them by acquaint- 
ance. 

68958— 50— pt. 1 7 



88 ORGANIZED CEIME IN INTERSTATE COMMERCE 

The Chairman. Where ^vould you meet them? 

Mr, O'RouRKE. Men who have been in the bookmaking business for 
years. 

The Cir AIRMAN. You laid off bets with Erickson? 

Mr. O'EouRKE. No, sir; not a bet. The only transaction with Mr. 
Erickson was on the deal I have mentioned. 

The Chairman. Who did you lay off with in New York or Chicago ? 

Mr. O'EouRKE. Not in New York or Chicago. 

The Chairman. You got this man down here in Miami that you 
can lay bets off with ? 

Mr. O'RouRKE. I did for a while lay off a few bets to Dick Evans. 

The Chairman. You must have some understanding between you 
fellows about who will take a lay-off bet. How do you get that 
information ? 

Mr. O'RouRKE. You get to know the fellows that are in town here. 
I have never laid any bets out of the State. In fact, there are three or 
four bookmakers around there in West Palm Beach and we do busi- 
ness with one another and naturally we did a little business with some 
of the Miami boys locally around here that are close by, and that 
comes from association. 

Take football. If I need a couple of Orange Bowl tickets. I call one 
of them and get some tickets for a friend and things like that, but I 
never laid off' many bets. I think Dick Evans is the man I laid bets 
off with. It is too hard to do that. 

The Chairman. You read in the papers where Mr. Erickson's books 
were secured in New York? 

Mr. O'RouRKE. Yes, sir. 

The Chairman. Have you talked with him since that time? 

Mr. ORouRKE. Only to say "Hello.'* 

The Chairman. Where was he when you said "Hello" ? 

Mr. O'RouRKE. I only ran into him by accident, not by engagement, 
prearranged or anything. I went to New York before 1 ever knew 
his name was in the papers. I went up there to see a friend of mine 
and ran into him in the barber shop. 

The Chairman. Just accidentally? 

]Mr. O'RouRKE. Yes. No prearranged meeting at all. That was 
after he testified at Washington. 

The Chairman. Did you see him after you ran into him at the 
barber shop? 

Mr. O'RouRKE. OnW a few minutes, after he got through shaving 
and a haircut. 

llie Chairman. Did you transact any business? 

Mr. O'RouRKE. Not a single thing. The only thing I remember 
referring to business was — I just asked him how he was feeling and 
he said it was getting tough. 

The Chairman. Did you see Frank Costello? 

]Mr. O'RouRiiE. I don't know Frank Costello, only by his pictures 
in the paper. I never met him in my life. 

Tlie Chairman. Did you see Joe Adonis when you were up there? 

Mr. O'RouRKE. I didn't talk to Joe Adonis. I saw him in Dinty 
Moore's Restaurant. I had no business with liim. I know him by sight. 

Mr. Hai,ley. When did you go to New York? 

Mr. O'RouRKK. Wednesday two weeks ago or Tuesday a week ago.- 

Mr. Halley. When did you return to West Palm Beach? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 89 

Mr. O'RouRKE. I think I <rot in here Saturday. 

Mr. Halley. Just a ^Yeek ago today ? 

]\Ir. O'RouRKE. I think that was it. I am pretty sure it was a. 
week ago today. 

Mr. Halley. How long were you in New York ? 

Mr. O'RouRKE. I stayed in New York one day and one night, and L 
left the next day. 

Mr. Halley, Did you go any place before New York? 

Mr. O'RouRKE. That is right. 

Mr. Halley. You stayed a day and a night and you returned here? 

Mr. O'RouRKE. That 'is right. 

Mr. Halli:y, What hotel did you stay in ? 

Mr. O'RouRKE. Waldorf. 

Mr. Halley. In what barber sliop did you meet Mr. Erickson? 

]Mr. O'RouRKE. In the Waldorf. 

:Mr. Halley. What day was that ? 

]SIr. O'RouRKE. That was the morning after I got in. I think it 
was on a Wednesday. 

Mr. Halley. You just hapjjened to bump into Erickson in the 
Wfddorf Barber Shop ? 

Mr. O'RouRKE. That is right. 

Mr. Halley. Did you see him or did he see you ? 

Mr. O'RouRKE. i didn't know he was in there. He was in the 
barber chair. 

Mr. Halley. Did he recognize you and call you over ? 

Mr. O'RouRKE. No, sir. 

Mr. Halley. Did you see him in the barber shop ? 

Mr. O'Rourke. Yes. 

Mr. Halley. And you walked over to him ? 

Mr. O'Rourke. That is right. 

Mr. Halley. That is all. 

The Chairman. Did you ever talk with him on the telephone since 
then ? 

Mr. O'Rourke. No, sir ; not since then. 

The Chairman. Is there anything else, Mr. Halley ? 

]\lr. Halley. That is all. Thank you. 

The Chairman. Thank you, Mr. O'Rourke. 

Tlie committee will recess until 2 o'clock. 

(Wliereupon, at 12:45 p. m. a recess was taken to reconvene at 
2 p. m.) 

afternoon session 
The Chairman. The hearing will be resumed. 
FURTHER TESTIMONY OF ABE ALLENBERG, MIAMI BEACH, FLA. 

The Chairman. Mr. Allenberg, you were sworn yesterday, were 
you not ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Have you responded to the subpena duces tecum that 
was served upon you ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And you have furnished certain records to this com- 
mittee? 

Mr. Allenberg. Yes, sir. 



90 ORGANIZED CRIME IX INTERSTATE COMMERCE 

Mr. Halle Y. Do you want to identify the records that you have 
produced ? 

What are these documents I have here ? 

Mr. Allenberg. Those are income-tax returns. 

Mr. Hallet. For what years ? 

Mr. Allenberg. For many years back. 

Mr. Hallet. They run up to 1949 ? 

Mr. Allenberg. I think 1946, 1947, 1948, and 1949 are in the hands 
of Mannie Kramer, who is an accountant. 

Mr, Hallet. In the hand.s of Mannie Kramer, who is an accountant ? 

Mr. Allenberg. Yes, sir. 

Mr. Hallet. And these are the ones for prior years; is that right? 

Mr. Allenberg. Yes, sir. 

Mr. Hallet. I offer in evidence these documents as exhibit No. 40 
the income tax file from 194:2 to 1944 for Abe Allenberg, which file 
also contains letters from Andy Pellino on the stationery of Henry 
Pellino, a certified public accountant of New York City, discussing 
Allenberg's taxes in connection with those of Frank Erickson. 

The Chairman. It will be received and made a part of the record. 

( Exhibit No. 40, income tax returns and papers relating thereto are 
on file with committee ; letters from Pellino appear in the appendix 
on p. 731.) 

Mr. Hallet. And you have an envelope of miscellaneous papers 
referring to the Wofford Hotel i 

Mr. Allenberg. Yes, sir; miscellaneous papers referring to the 
Wofford Hotel. 

Mr, Hallet. I offer in evidence a folder of miscellaneous papers 
referring to the Wofford Hotel as exhibit No. 41. 

The Chairman. It will be received and made a part of the record. 

(Folder of miscellaneous papers re Wofford Hotel received in evi- 
dence as exhibit No, 41 on file with committee.) 

Mr. Hallet. Here is another batch of miscellaneous papers con- 
cerning Tropical Park and Gables Racing Association. 

The Chairman, Let these miscellaneous papers in the brown enve- 
lope be filed and made a part of the record as exhibit No. 42. 

(Miscellaneous papers re Tropical Park and Cables Racing Asso- 
ciation received in evidence as exhibit No. 42 on file with connnittee.) 

Mr. Hallet. When did you first come to Miami ? 

Mr, Allenberg. 1935. 

Mr. Hallet. Will you state the circumstances ^ 

Mr. Allenberg. I came down here representing Frank Erickson 
in the purchase of an interest. in the Gables Racing Association. Ho 
bought a 20 percent interest in the Gables Racing^Association. The 
interest was taken in my name as trustee, and that contimied on until 
1941. 

Mr. Hallet, In otlier words, you came down as Frank Erickson's 
agent in the Gables Racing Association ? 

Mr. Allenberc;. As his attorney. 

Mr. Hallet. How much money did he invest in the Gables Racino- 
Association? ' *^ 

Mr. Allenberg. Upward of $250,000. 

Mr. Hallet. Did you serve as president of the Troi:>ical Park Race 
Track? 



ORGANIZED CMME IN INTERSTAT'E COMMERCE 91 

Mr. Allenberg. Xo. I served as comptroller of the race track. 

Mr. Halley. How much money was invested in all by the various 
people in this Tropical Park Kace Track ? 

Mr. Allenberg. The race track had already been in existence for 
a few years and was on the ver<re of bankruptcy when this money was 
put in! This money was put in to keep the race track solvent. Up td 
that time I don't know how nuu-li had been invested. 

Mr. Halley. At the time that Erickson put his money in, then, he 
was the only man to supply new capital ; is that ri<rht ? 

Mr. Allenbekg. That is ri<rht. 

Mr. Halley. And he took over control of Tropical Park Track? 

Mr. Allenberg. Yes. sir. 

Mr. Halley. With you as his representative ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Were you on a salary basis? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Did you have any interest in the business as an owner? 

Mr. Allenberg. Xo, sir. He took all of the profits, whatever tliey 
were. 

Mr. Halley. Did you get a commission of any kind ? 

Mr. Allenberg. Xo, sir. 

Mr. Halley'. a straio;ht salary? 

Mr. Allenberg. Straight salary. 

Mr. Haij:,ey. Hoav nuich ? 

Mr. Allenberg. Started at $10,000 and I think it went to $15,000 
a year. 

Mr. Halley. Did you have any other business interests in Miami 
or Miami Beach after 1935 while you were connected with Tropical 
Park Track? 

Mr. Allenberg. Xot while I was with Tropical Park Race Track. 

Mr. Halley. Did you have any other income except your salary 
from Frank Erickson? 

IVIr. Allenberg. Xo. I didn't get a salary from Frank Erickson. 
It came from the Gables Racing Association. 

Mr. Halley. Which operated the track ? 

Mr. Allenberg. ^^Hiich operated the track. 

Mr. Halley. And you devoted all your time to the track ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. In 1941, what happened ? 

Mr. Allenberg. The stock of the Gables Racing Association was 
sold and Erickson was then out of Tropical Park Race Track. The 
stock was sold in the Gables Racing Association at that time and 
he received the proceeds of the sale. 

Mr. Halley. What did you do after that ? 

Mr. Allenberg. After that I made arrangements with Tom Cas- 
sara to take over the operation of the Wofford Hotel. 

Mr. Halley. Would you state the circumstances under which that 
arrangement was made? How did you first meet Cassara and so 
forth? 

JNIr. Allenberg. I had known Cassara down here and he heard that 
I was looking around to get into the hotel business since I was out 
of Tropical Park Race Track, and he suggested that I take over from 
him the lease of the Wofford Hotel. I couldn't take the lease over be- 



92 ORGANIZED CRIME IN INTERSTATE COMMERCE 

•cause Mrs. Wofford wouldn't sign it, so we took it over under a man- 
agement contract, and I had a half interest in it and in order to clean 
up the debts of the Wofford Hotel, it required a little over $20,000. I 
put $10,000 in and I borrowed the balance from Frank Erickson, and I 
regarded it as a loan when I took it, but he might have regarded it 
as a partnership arrangement with me. 

At any rate we continued on for 2 years and he got his money back 
plus an overage, and one day I talked with him and he said he didn't 
want to have anything to do with the Wofford Hotel. He said, "You 
can have it on your own." 

Sothen I continued on for the next couple of years. The Wofford 
Hotel was my own proposition. 

Mr. Halley. How much money did he give you to invest in the Wof- 
ford originally? 

Mr. Allenberg. $11,500. He loaned me some after that to keep it 
going with. 

Mr. Halley. How much in all did he lend you ? 

Mr. Allenberg. He might have loaned me another $10,000 after I 
was in operation. 

Mr. Halley. So your best estimate is that he gave you a total of 
over $20,000 ? 

Mr. Allenberg. That is right, and that was paid back to him. 

Mr. Halley. At what time did you first go into the management 
of the Wofford? 

Mr. Allenberg. That was in November of 1941 ? 

Mr. Halley. And when did you leave the Wofford ? 

Mr. 'Allenberg. In 1945. I came back there for the winter of 
1945-46 and stayed there until it was either March or April of that 
year. 

Mr. Halley. During that time, was Erickson interested in the 
Wofford? 

Mr. Allenberg. For the first 2 years. 

Mr. Halley. And after that, Erickson no longer had an interest 
in it? 

Mr. Allenberg. No. 

Mr. Halley. Did he receive any part of the profits after — in the 
first 2 years ? 

Mr. Allenberg. I don't know whether he received it as profits or 
part of his money back. 

Mr. Halley. Who kept the accounts for the Wofford ? 

Mr. Allenberg. The accounts were kept by the accountants. 

Mr. Halley. Isn't it a fact that you reported the income to Erick- 
son and that he was given what was known as his share of the profits? 

Mr. Allenberg. It might have been reported that way. 

Mr. Halley. Continuing with the Wofford Hotel, what other people 
were in the management besides yourself and Cassara ? 

Mr. Allenberg. After 1 got in there, I found out that John King 
had an interest in it, and a man called Augie Carfano had an interest 
in it. 

Mr. Halley. Now, Augie Carfano was called Little Augie, was 
he not ? 

Mr. Allenberg. Yes. 

Mr. Halley. And John King is a well-known racketeer from Cleve- 
land, isn't he ? 



ORGANIZED CRIME IN INTERSTAT'E COMMERCE 93 

Mr. Allenberg. I have since learned that. 

Mr. Halley. You didn't know it at that time ? 

Mr. Allenberg. No, sir. 

Mr. Halley. Isn't it something of a remarkable coincidence that at 
that one hotel at the same time there should go into the management 
you who had been Erickson's representative with Erickson's money, 
Little Augie, and Jolm King — all at the same time ? 

Mr. Allenberg. Yes, 

Mr. Halley. At the time, Erickson did not want to go into the 
Wofford Hotel deal? 

Mr. Allenberg. That was the only deal that I could find for myself 
to go into business on the beach because it took the least amount of 
money and I asked Erickson if he would loan me that money to take 
an interest, or take his money in whatever way I would be able to give 
it to him, so that I could have something to be doing down here at the 
beach. There were no other hotels to get. There were others, but it 
took a lot of money to get a hotel. I could have bought the other half 
of the interests that were in there for another $20,000 if I had had it. 
I didn't go in there to go in with Carfano, King, or Erickson. I 
originally tried to go in with two other gentleman here in town, but 
Mrs. Wofford would not consent to an assignment of the lease. I went 
to her and she said they — she wouldn't consent to an assignment ; I had 
to go in on my own. 

Mr. Halley. Once you got into the WofFord Hotel, a number of 
Erickson's people moved in ; isn't that right ? 

Mr. Allenberg. Right. 

Mr. Halley. Who were they? 

Mr. Allenberg. They were living there from time to time — Briggs. 

Mr. Halley. Who is Briggs, and will you tell us what his business 
was? 

Mr. Allenberg. Briggs was associated with Erickson. 

Mr. Halley. What did Briggs do ? 

Mr. Allenberg. He would represent Erickson in some of these 
gambling ventures they had; whether it was the race track or the 
Hollywood Beach Hotel or some of the gambling clubs — whatever 
they might be, he would be with him. 

Mr. Halley. What were some of these gambling ventures that you 
speak of? Let's start with the race track. Describe the gambling 
ventures at the race track. 

Mr. Allenberg. Gambling ventures at the race track would be 
where there are men to go to the race track or make bets on horses and 
they don't bet money into the mutuel machines, but they bet it with 
what are known in race tracks as bookmakers. That is what the func- 
tion of those men w^ould be. 

Mr. Halley Let me see. Erickson has operated books within the 
grounds of the various race tracks around Miami ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And he operated them through these people he had sta- 
tioned there in Miami ? 

Mr, Allenberg. That is right. 

Mr. Halley. Who are some of the people who operated inside of the 
track for Erickson ? 

Mr. Allenberg. Briggs, Cantor, Zeldow. Those men would also do 
this at the track : They handled what is known as come-back money. 



94 ORGANIZED CE'IME IN INTERSTATE COMMERCE 

That is money that is bet, that is called in to a telephone somehow in 
the neighborhood and they would come into the race track and would 
bet it on the horses. 

Mr. Halley. There was a central clearinghouse for that type of 
bet in Miami, wasn't there, such as a bar or a room above a bar? 

Mr. Allenberg. That would bet right out at the race track. 

Mr. Halley. The bets came in by phone from somewheres 'i 

Mr. Allenberg. Yes. They would go to the race track or some 
place in the vicinity of the race track. There might have been another 
one in tow^n, but I don't know whether Erickson would have anything 
to do with that. That might be of a local nature. 

Mr. Halley. The phone call would be at the race track in a phone 
booth? 

Mr. Allenberg. Not at, but right adjacent to the race track so you 
can get inside, 

Mr. Halley. Somebody to bring in the money ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And Erickson would have a man to receive the phone 
calls? 

Mr. Allenberg. Yes ; it would be one of those men. 

Mr. Halley. Who besides Briggs and Cassara did that work at the 
race track? 

Mr. Allenberg. Zeldow, Strader. Another fellow used to be around 
there with them. At any rate, I think the man died. 

The Chairman. How would it be if we got continuity of what Mr. 
Allenberg is telling us and then go back into anything that we need to 
fill in? 

Mr. Halley. Fine. Go right ahead. 

Mr. Allenberg. Having been at the race track for many years, I 
knew many of the intricacies of the workings and what tliey do out 
at the race track. Then after they wovild be out there, tliey would 
meet certain people and bet on horses, and they would bet with them — - 
maybe it might be John Jones or Tom Smith who would make his 
bets with him, and those would be the men who were taking the bets. 
They were Erickson's representatives. As to paying off, they had an 
agreement, whether the next day or the same day or the week after- 
ward, it all depended who the people were. Many of those men lived 
at the hotel where I was associated with it, and they wanted to give 
me the hotel business rather than give their business to somebody 
else. 

Anyhow, I had the business, and I would accommodate them practi- 
cally every day by cashing checks for them. 

The Chairman. Go ahead. 

Mr. Allenberg. Also at the race track were these men who would 
sometimes, I imagine, play part of their bets back into the machine 
again in order to give the race track additional business. 

Senator, that I think was the picture of what a man could do on 
the race track pretty fully. He takes bets from somebody. 
> The Chairman. Mr. Allenberg, we want the picture about how this 
mob operates, and w^e are going to get it either the easy way or the 
hard way because you know. 

Mr. Allenberg. I am telling you the easy way. That is the picture 
at the race track. They take their bets, and they pay off either that 



ORGANIZED CRIME IN INTERSTATE COMMERCE 95 

day or tlie next day or whatever the method would be that they would 
have arranged for with the man they did the betting with. 

The Chairman. What else happened ? 

Mr. Allenbekg. And they would win or lose on those things. 

The Chairman. Then you left the Wofford ? 

Mr. Allenberg. I left the Wofford Hotel, yes, sir, in 1945. 

The Chairman. Where did you go to then ^ 

Mr. Allenberg. To the Boulevard Hotel with two partners. One 
was Herman Levitt and the other was Charlie Collins, both hotel men 
for many 3'eai'S on the beach ; well-known hotel men. 

The Chairman. And the mob went with you? 

Mr. Allenberg. Some of Erickson's men came over to the Boule- 
vard Hotel. There was 'nobody followed anybody there. Senator. 
There were many race-track clerks in the area of Miami during the 
time of the races. The racing season was on. 

The Chairman. Here first is a photostat of what appears to be a 
pajier dated September 21, 1945, relative to a partnership on the Wof- 
ford Hotel. Do you recognize those signatures ? 

Mr. Allenberg. I recognize the names, sir — Carf ano and Lorentzen. 
Lorentzen was a relative of John King's; I remember that. 

The Chairman. Let that be filed as exhibit No. 43. 

(Photostat of paper referring to partnership in Wofford Hotel, 
dated September 21, 1945, received Jn evidence as exhibit No. 43. 
Loaned to committee by Mr. Daniel P. Sullivan, Greater Miami Crime 
Commission, and subsequently returned to him.) 

The CiLMR:\f AN. Here's a photostat dated December 28, 1945, advis- 
ing about the formation of a partnership between Abe Allenberg and 
Anthony Carfano and Otto Lorentzen. Do you recognize those signa- 
tures ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. As yours? 

Mr. Allenberg. Yes, sir. 

The Chairman. Those are the men you were in partnership with? 

Mr. Allenberg. It says I assigned my interest in the partnership 
over to those men. It says that I disposed of my interest. 

The Chairman. Up here are the names of the partners and then 
you assigned it to some other people? 

Mr. Allenberg. Yes, sir. 

The Chairman. That is exhibit No. 44. 

(Document dated December 28, 1945, re formation of partnership 
of Abe Allenberg, Anthony Carfano, and Otto Lorentzen received 
as exhibit No. 44. Loaned by, and later returned to Mr. Daniel 
Sullivan.) 

The Chairman. Here is a photostat of a document dated April 20, 
1945, saying that Anthony Carfano is a partner and that he has au- 
thority to sign checks; is that correct? 

Mr. Allenberg. Yes, sir. I was out of there along there. 

The Chairman. That will be exhibit No. 45 and made a part of the 
record. 

(Document dated April 20, 1946, authorizing Carfano to sign checks 
received in e\^idence as exhibit No. 45. Loaned by, and later returned 
to Mr. Daniel Sullivan.) 

The Chairman. Do you recognize the signature on this paper of 
May 23, 1946, which is an assignment? 

Mr. Allenberg. Yes, sir. 



96 ORGAlSrrZED CKIME in nSTTERSTATE COMMERCE 

The Chairman. Tliat will be exhibit No. 46. 

(Assignment dated May 23, 1946, received in evidence as exhibit 
No. 46. Loaned by, and later returned to Mr. Daniel Sullivan.) 

The Chairman. Here is a group of checks signed by Abe Allen- 
berg, trustee, Wofford Hotel, for different amounts, either signed by 
you or Joseph Cardone or Fred J. King. Do you identify the signa- 
tures on those checks ? 

Mr. Allenberg. Yes, sir. 

The Chairman. They will be received and made a part of the 
record. 

(Group of checks signed by Abe Allenberg, trustee, Wofford Hotel, 
received in evidence, exhibit No. 47. Loaned by, and later returned to 
Mr. Daniel Sullivan.) 

The Chairman. Do you recognize this picture, Mr. Allenberg? 

Mr. Allenberg. That is Carf ano. 

The Chairman. He is the man with whom you were in partnership ? 

Mr. Allenberg. Yes, sir. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Anthony Carf ano, alias Little Augie, received in 
evidence as exhibit No. 48.)^ 

The Chairman. Little Augie was your partner ? 

Mr. Allenberg. Yes ; I am sorry to say. 

The Chairman. Do you recognize this picture? 

Mr. Allenberg. That is Frank Erickson. 

The Chairman. That is Frank Erickson? 

Mr. Allenberg. Yes, sir. 

The Chairman. He was your sponsor in this ? 

Mr. Allenberg. Yes, sir. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Frank Erickson received in evidence as exhibit 
No. 49.) 

The Chairman. Did he stay at the Wofford Hotel ? 

Mr. Allenberg. Sometimes. 

The Chairman. And Little Augie was there, of course? 

Mr. Allenberg. Yes, sir. 

The Chairman. Do you recognize this picture? 

Mr. Allenberg. That is Joe Adonis. 

The Chairman. Did he stay at your hotel? 

Mr. Allenberg. I think he did at times. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Joe Adonis was received in evidence as exhibit 
No. 50.) 

The Chairman. Let's go back just a minute. The first was Little 
Augie ? 

Mr. Allenberg. Yes, sir. 

The Chairman. What was his legitimate interest in INIiami ? Wliat 
business did he have here? 

Mr. Allenberg. He had an interest in the Raleigh Hotel, I am told, 
and he had an interest in the AVofford Hotel. 



1 Exhibit Nos. 48 througli 99, wliicli are photographs, are on file with the committee. 



ORGANIZED CRIIME IN INTERSTAT'E COMMERCE 97 

The Chairman. What else ? . t- -it n 

Mr Allenberg. He was supposed to be representing Jimmy Kelly, 
his father-in-law. That is how I understood it. Jimmy Kelly was 
a racketeer and night club man in New York and a Democratic leader. 

The Chairman. What other interests did he have m Miami ^ 

Mr. Allenberg. Outside of those two, I don't know. 

The Chairman. What illegitimate interests did he have? 

]\Ir. Allenberg. Gambling by playing horses and going to the 
night places and gambling. I don't know what his interest was m 
any place. 

The Chairman. And the exhibit before was that of Frank J^rick- 

son? 

Mr. Allenberg. Yes, sir. 

The Chairman. What were Frank Erickson's interests in Miami? 

Mr. Allenberg. Frank Erickson's interest in Miami was Tropical 
Park, and the interest he had with me in the Wofford Hotel. 

The Chairman. What else ? 

Mr. Allenberg. He had an interest in the Colonial Inn, and he had 
an interest years ago in the Boheme Club. 

The Chairman. What is his interest here now ? 

Mr. Allenberg. Nothing as far as I know, Senator. 

Mr. Halley. You haven't told Senator Kefauver all of the interests 
that Frank Erickson has had in and around Miami. How about 
the three big hotels, the Hollywood Beach, Boca Raton, and the 
Roney ^ 

Mr. Allenberg. He has had a concession at the Roney Plaza Hotel, 
an interest in the concession at the Hollywood Beach Hotel, and the 
concession at the Boca Raton Club. 

Mr. Halley. What kind of concession ?. 

Mr. Allenberg. Bookmaking concession. 

Mr. Halley. He operated a private book ? 

Mr. Allenberg. Yes, sir. 

The Chairman. How much did he pay for the concession at the 
Roney Plaza? 

Mr. Allenberg. All I know, Senator, is what I get from hearsay. 
I never heard it. 

The Chairman. Now, Mr. Allenberg 

Mr. Allenberg. I didn't know just until the thing was closed that 
he was in it. I heard he paid $55,000. 

The Chairman. You didn't know anything about the negotiations ? 

Mr. Allenberg. No, sir ; not in the least. 

The Chairman, What did it come to at the Boca Raton Club ? 

Mr. Allenberg. That I don't know. 

The Chairman. Did you negotiate any of these? 

Mr. Allenberg. No, sir; because I was not in favor of them. 

The Chairman. You didn't approve of them ? 

Mr. Allenberg. No, sir. 

The Chairman. Who is this a picture of ? 

]\[r. Allenburg. That is Meyer Lansky. 

Mr. Halley. That will be exhibit No. 51. 

(Photograph of Meyer Lansky received in evidence as exhibit No. 
61.) 

The Chairman. Did he stay at the Wofford Hotel? 

Mr. Allenberg. He did occasionally ; yes, sir. 



^8 ORGANIZED CKiME IN INTERSTATE COMMERCE 

The Chairman. He is a well-known criminal ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Who is this a picture of? 

Mr. Allenberg. This one I don't know, Senator. 

The Chairman. Look on the back and see if you can recognize his 
name ? 

Mr. Allenberg. I recognize the name "'Jimmy Bkie Eyes," it says 
on here. 

The Chairman. Do you know him? 

Mr. Allenberg. He stopped at the Wofford Hotel. 

The Chairman. Then he was a customer of yours ? 

Mr. Allenberg. Yes, sir. 

The Chairman. And he is a well-known criminal? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Didn't he also have an interest in the Colonial Inn with 
Erickson ? 

Mr. Allenberg. From what I have read in the newspapers. 

Mr. Halley. And from what you know, too. Let's keep away from 
what you read in the newspapers. 

Mr. Allenberg. Don't push me any further than I have to be 
pushed. I don't know. I never spoke to the man about his interests 
in the Colonial Inn. I never spoke to the man about any of his in- 
terests. If he stopped at the Wofl'ord Hotel, it was because he came in 
and rented a room there. 

Mr. Halley. Did you ever speak to Erickson about his interests in 
the Colonial Inn? 

Mr. Allenberg. No, sir; I did not. 

The Chairman. The one before is Lansky. What was his interest 
in Miami ? 

Mr. Allenberg. I was led to believe it was in the Colonial Inn or 
in gambling places tliat would be up in Broward County. I never 
spoke to him about it. 

The Chairman. You don't know of any other interests ? 

Mr. Allenberg. No, sir. 

The Chairman. Let this be received and made a part of the record. 

(Photograph of Vincent x\lo, alias Jimmy Blue Eyes received in 
evidence as exhibit No. 52.) 

The Chairman. Do you recognize the name of this party ? 

Mr. Allenberg. Yes, sir. 

The Chairman. What is his name? 

Mr. Allenberg. I can't think of it. I recognize his face. 

Tlie Chairman. Look on the back. 

Mr. Allenberg. Michael Coppola. 

The Chairman. Do you remember him now? 

Mr. Allenberg. Yes, sir. 

The Chairman. Wliat is his alias? 

Mr. Allenberg. I didn't know lie had an alias, only what I see here — 
Trigger Mike. 

The Chairman. Did you know him as Trigger Mike? 

Mr. Allenberg. No, sir. 

Tlie Chairman. Did lie stay at the Wofford Hotel? 

Mr. Ali>eni'.er(;. Yes, sir; I am pretty sure. 

The CiiAHiMAN. What was his interest in Miami? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 99' 

Mr. AiJ.EXBKHG. I wouldn't know except that he was interested in 
gambling houses. 

The Chairman. Do you know of an}' property he owns? 

Mr. Allenberg. No, sir. 

The Chairman. This picture will be received and made a part of 
the I'ecord. 

(Photograph of Michael Coppola, alias Trigger Mike, received ia 
evidence as exhibit No. 5-).) 

The Chairman. Do you recognize the picture of this man? 

Mr. Allenberg. No, sir. 

The Chairman. Look at the back and see if you know his name. 

Mr. Allenberg. No, sir. 

The Chairman. You don't know him ? 

Mr. Allenberg. No, sir. 

The Chairman. Julius Kramer: does that strike a familiar ring? 

JNIr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Julius Kramer received in evidence as exhibit No. 
54.) 

The Chairman. Do you recognize the picture of this person? 

]\Ir. Allenberg. No, sir. 

The Chairman. What is the name on the back of that picture? 

Mr. Allenberg. Bennie Kay. 

The Chairman. Do you know Bennie Kay ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Is that him? 

Mr. Allenberg. Yes, sir. 

The Chairman. Then you do recognize his picture? 

Mr. Allenberg. I do know after I looked at it. 

The Chairman. Was he a customer of the Wofford Hotel? 

Mr. Allenberg. Not when I was there. 

The Chairman. Was he over at the Boulevard Hotel? 

Mr. Allenberg. No, sir. 

The Chairman. When did you see him ? 

Mr. Allenberg. Around in the restaurants in town. 

The Chairman. Did you know him to s])eak to ( 

Mr. Allenberg. I knew him to say "hello" to. 

The Chairman. Where did you first know him ? 

Mr. Allenberg. I think in Wolfie's. 

The CiiAiRMAx. What is his interest in Miami ? 

Mr. Allenberg. He is in the gambling house business. He is sup- 
posed to be the man connected with the Blackamoor Room or some 
club over the Blackamoor Room. They played cards or gambled. 

The Chairman. Is that in Miami ? 

Mr. Allenberg. Miami Beach. 

The Chairman. That will be received and made a part of the rec- 
ord. 

(Photograph of Bennie Kay received in evidence as exhibit No. 55.) 

The Chairman. Do you recognize the picture of this man? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name. 

Mr. Allenberg. No, sir: I don't know him by name either: repu- 
tation or otherwise. 



100 ORGANIZED CRIME IX INTERSTATE COMMERCE 

The Chairman. The name is Frank 

Mr. Allenberg, Livorsi. 

The Chairman. You never saw him? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Frank Livorsi received in evidence as exhibit 
No. 56.) 

The Chairman. Do you know this man ? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name on the back. 

Mr. Allenberg. I recognize the name "Poagy." 

The Chairman. Was he one of your customers at the hotel ? 

Mr. Allenberg. He lived at the Wofford Hotel. 

The Chairman. Where is he from ? 

Mr. Allenberg. I don't know. 

The Chairman. He is a well-known gambler, isn't he ? 

Mr. Allenberg. I don't know what his business is. Senator. 

The Chairman. What was his interest in Miami ? 

Mr. Allenberg. I don't know. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Alfred Toriello received in evidence as exhibit 
No. 57.) 

The Chairman. Do you recognize this picture ? 

Mr. Allenberg. That is Frank Costello. 

The Chairman. Did he ever stay at the Wofford Hotel ? 

Mr. Allenberg. Yes, sir ; I think he did. 

The Chairman. Ancl at the Boulevard Hotel ? 

Mr. Allenberg. No, sir ; he never stopped there. 

The Chairman. How well did you know Frank Costello? 

Mr. Allenberg. How well? I didn't know him .well at all. I 
know him to say "Hello" to. 

The Chairman. He stayed in your hotel ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Did you know him in New York before you came 
down here ? 

Mr. Allenberg. Yes, sir. 

The Chairman. How well did you know him in New York ? 

Mr. Allenberg. I didn't know him well in New York, either. I 
knew him from having met him through Frank Erickson. 

The Chairman. How long did you know him in New York before 
you came here ? 

Mr. Allenberg. Maybe 2 or 3 years. 

The Chairman. Did you ever have any business dealings with him? 

Mr. Allenberg. I never had ; no, sir. 

The Chairman. How did you happen to know him? 

Mr. Allenberg. I met him tlirough Frank Erickson. 

The Chairman. What is Frank Costello's business interest in 
Miami? 

Mr. Allenberg. I don't know wliat Frank Costello's business 
interest is, Senator. All I know is he is supposed to be interested up 
in the Colonial Inn in Broward County, but not down here. 

The Chairman. Does he have an interest up there now? 

Mr. Allenberg. That I don't know, Senator. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 101 

The Chairman. Now, can you tell us what other interests he has? 
Does he have an interest in the bookie operations in the Koney Plaza? 
Mr. AiXENBEBG. I don't know. 

The Chairman. What is your best information? ^ 

Mr Allenberg. My information would be that he doesn t have. 
The Chairman. Let this photograph be received and made a part 

of the record. . ■, . ■ -, i -u-^ 

(Photograph of Frank Costello received ni evidence as exhibit 

No. 58.) ^ ^ ^ . , 

The Chairman. These pictures, most of whom you recognized, are 

the so-called New York syndicate, aren't they ? Erickson, Costello 

Mr. Allenberg. Gamblers, yes, sir. • , • g 

The Chairman. That is the so-called New York syndicate, isn t it i 
Mr. Allenberg. I would say "Yes." 
The Chairman. And they were all practically customers ot your 

hotel ? 

Mr' Allenberg. They all lived at the Wofford Hotel, Senator. 

The Chairman. You were glad to have them there, weren't you? 

Mr. Allenberg. No, sir. 

The Chairman. Why didn't you keep them out ? .•■■,. 

Mr. Allenberg. When a guest comes to stop at a hotel, it is hard 
keeping him out. 

The Chairman. They were there during the war years, weren t 
they? 1943 and 1944? 

Mr. Allenberg. That is right. 

The Chairman. Were you turning people away? 

Mr. Allenberg. Yes, sir. 

The Chairman. You were turning people away in droves, so you 
could pretty well choose your guests. 

You know you would go down personally to meet some of them at 
the train. For instance, Frank Erickson ? 

Mr. Allenberg. Erickson; yes, sir. 

The Chairman. And Costello? 

Mr. Allenberg. Not Costello, sir. 

The Chairman. And Frank Erickson and his whole bunch — his ac- 
countant, ills wife, and you had an arrangement where you could drive 
your car next to where they would get off and put them in your car 
and take them to the hotel. 

Mr. Allenberg. It was not my car because we hired it. 

The Chairman. You did have a car hired and you would go down 
and get them right out of the puUman, into your car so you wouldn't 
have any inconvenience and they wouldn't be seen ? 

Mr. Allenberg. I don't know that it actually was not to be seen. 

The Chairman. Did you go to meet all of your guests like that? 

Mr. Allenberg. Some of them I did. 

The Chairman. Your special ones? 

Mr. Allenberg. They would have to be special to go down and meet 
them. 

The Chairman. Let's look at a few more pictures and see if you 
recognize them. 

Do you recognize this man? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name on the back and see if you know 
his name. 



102 [ORGANIZED CRIME' IN INTERSTATE COMMERCE 

Mr. Allenberg. I don't see any name, Senator, unless it is "Sulli- 
van." 

The Chairman. "Angelino from Albany." 

Mr. Allenberg. The name means nothing to me, Senator. 

Mr. Halle Y. That is exhibit No. 59. 

(Photograph of George Angersola received in evidence as exhibit 
No. 59.) 

Mr. Halley. We have a name "George Angersola." 

Mr. Allenberg. That is George King. 

Mr. Halley. That is George King? It doesn't look like him. 

Mr. Allenberg. I know George King. That is none of the brothers 
of John King. 

The Chairman. Was John King or George King a customer of 
yours ? 

Mr. Allenberg. George King lived at the AVofford. 

The Chairman. And lie is of the so-called Cleveland gang? 

Mr. Allenberg. So I am told. Senator. 

The Chairman. You know that ; don't you ? 

Mr. Allenberg. I don't know it, Senator. 

The Chairman. You know all of these men have criminal records as 
long as your arm. 

Mr. Allenberg. Now we do. 

The Chairman. You know it at the time ? 

Mr. Allenberg. No; I didn't know it at the time. All that has 
come out since then. 

The Chairman. He has been in the Boulevard Hotel with you; 
hasn't he? 

Mr. Allenberg. No, sir. 

The Chairman. Whose is the second picture ? 

Mr. Allenberg. John King. 

The Chairman. Is he a brother? 

Mr. Allenberg. Yes, sir. 

The Chairman. He is another one of the Cleveland gang; isn't he? 

Mr. Allenberg. Yes, sir. 

The Chairman. Was he a customer of yours at the Wofford Hotel ? 

Mr. Allenberg. John King had an interest in it. 

The Chairman. In the Wofford Hotel? 

Mr. Allenberg. Yes, sir. That is the same James King as on those 
papers. 

The Chairman, And he had a criminal record before he had an 
interest in the Wofford Hotel? 

Mr. Allenberg. I did not know it. 

The Chairman. This photograph will be received and made a part 
of the record. 

(Photograph of John King received in evidence as exhibit No. 60.) 

The Chairman. Do you recognize this man ? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name. 

Mr. Allenberg. I don't recognize him. 

The Chairman. What is his name? 

Mr. Halley. Romeo Joseph Civatta. 

The Chairman. That will be received in evidence and made a part 
of the record. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 103 

(Photograph of Romeo Joseph Civatta received in evidence as 
exhibit No. Ol.) 

The Chairman. Do you recognize this man ? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name on the back and see if you recog- 
nize his name. 

Mr. Allenberg. No, sir ; I do not. 

Mr. Halley. C-i-b-e-t-t-a. 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name, and see if you recognize that 
name. 

Mr. Allenberg. No, sir; I do not. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Tony L. Cibetta received in evidence as exhibit 
No. 62.) 

The Chairman. Do you recognize this man? What is his name? 

Mr. Allenberg. It is the same — Civetta — Carlo F. Civetta. I don't 
know him. 

The Chairman. It will be received and made a part of the record. 

(Photograph of Carlo F. Civetta received in evidence as exhibit 
No. 63.) 

The Chairman. Do you recognize this picture ? 

Mr. xVllenberg. No, sir. 

The Chairman. Read his name. 

Mr. Allenberg. Joseph Di Carlo. 

The Chairman. Was he a customer of yours ? 

Mr. Allenberg. He was a customer of the hotel, but I don't remem- 
ber him ; I remember the name. 

The Chairman. How about Civetta? 

Mr. xVllenberg. I don't i-emember him. 

The Chairman. Was he a customer? 

Mr. Allenberg. I don't remember. 

The Chairman. This picture will be received in evidence and made 
a part of the record. 

(Photograph of Joseph Di Carlo received in evidence as exhibit 
No. 64.) 

The Chairman. How about Sam Di Carlo. Do you recognize his 
picture? 

Mr. Allenberg. No, sir. 

The Chairman. Do you remember his name? 

Mr. Allenberg. No, sir. 

The Chairman. Was he a guest at the hotel ? 

Mr. Allenberc;. When I say I don't remember I mean I don't 
remember whether it was Sam or George or what the name was, but 1 
remember the name Di Carlo. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Sam Di Carlo, alias Toto, received in evidence as 
exhibit No. 65.) 

The Chairman. Do you recognize this picture? 

Mr. Allenberg. Yes; I remember this fellow. 

The Chairman. Who is he ? 

68958 — 50 — i)t. 1 8 



104 lORG'ANIZED C'RtlME! IN INTERSTATE COMMERCE 

Mr. Allenberg. His name is Miller. He never lived at the Wof- 
ford Hotel. 

The Chairman. You have known him here for quite a while ? 

Mr. Allenberg. Known of him. 

The Chairman. Do you know him personally ? 

Mr. Allenberg. I know him to say hello to, but that is all. 

The Chairman. Is he a criminal ? 

Mr. Allenberg. I don't know, except that I see a mark on here. 

The Chairman. That will be received in evidence and made a part 
of the record. 

(Photograph of Sam Miller received in evidence as exhibit Xo. 66.) 

The Chairman. Do you recognize this man 'i 

Mr. Allenberg. No, sir. 

The Chairman. Fred King. 

Mr. Allenberg. That does not look like Fred King ; the one I know. 
I know Fred King. 

The Chairman. You know Fred King? 

Mr. Allenberg. Yes, sir. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Fred King received in evidence as exhibit No. 67.) 

Mr. Halley. You don't recognize him even after you see the picture ? 

Mr. Allenberg. You can see the smile on his face that that is him. 

The Chairman. Do you recognize this picture? 

Mr. Allenberg. No, sir. 

The Chairman. Read his name. 

Mr. Allenberg. I don't know^ him. I know the name by reputation. 

The Chairman. Was he a guest at your hotel ? 

Mr. Allenberg. No, sir. 

The Chairman. And you don't remember him? 

Mr. Allenberg. No, sir. 

The Chairman. Do you know this man ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. The picture of Abraham Zwillman will be No. 68. 

(The photograph of Abraham Zwillman received in evidence as 
exhibit No. 68.) 

Mr. Allenberg. He is a friend of John King's. 

The Chairman. Did he stay at the Wofford Hotel? 

Mr. Allenberg. I think he stayed at the Wofford, but I am not 
sure. 

The Chairman. Do you know this man ? 

Mr. Allenberg. That is Jack Friedlander, a man with a gambling 
reputation. 

The Chairman. Where did he come from ? 

Mr. Allenberg. I understood he came from Jersey. 

The Chairman. Was he a guest at the Wofl'ord Hotel ? 

Mr. Allenberg. I don't think so. Senator. I know who he is, but 
I don't think he stopped at the Wofford Hotel. 

The Chairman. But he is a well known local gambler? 

Mr. Allenberg. Yes, sir. 

The Chairman. What is his interest in Miami? 

Mr. Allenberg. Gambling houses, as far as I know. 

The Chairman. That will be received and made a part of the 
record. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 105 

(Photograph of Jack Friedlander received in evidence as exhibit 
No. 69.) 

]Mr. Halley. Do you know what gambling houses Jack Fried- 
lander is in? 

Mv. Allenberg. The Island Club — a couple of years. 

Mr. Halley. Any others? 

Mr. Allenberg. The 86 Club a couple of years ago. 

The Chairman. Do you recognize this picture? 

INIr. Allenberg. No, sir. 

The Chairman. Read his name. 

Mr. Allenberg. Nicholas Delmore. 

The Chairman. Did you ever hear of his name ? 

Mv. Allenberg. Yes, sir. 

The Chairman. Was he a guest of yours at the Wofford Hotel? 

]Mr. Allenberg. I don't remember whether he was or not. He is 
vague to me. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Nicholas Delmore received in evidence as exhibit 
No. TO.) 

The Chairman. Do you know William ]Mooretti ? 

Mr. Allenberg. He stopped at the Wofford Hotel, but I wouldn't 
recognize him from this picture; but he stopped there. 

Thhe Chairman. Who is he? 

Mr. Allenberg. He is from Jersey, too ; supposed to be a gambler 
from Jersey. 

Tlie Chairman. A part of the so-called Jersey gang or mob? 

Mr. Allenberg. The reason I remember his name is he moved from 
the Wofford Hotel up to one of the better hotels — the Versailles or 
something. I remember the name. 

The Chairman. That will be received and made a part of the record. 

(Photograph of William Mooretti received in evidence as exhibit 
No. 71.) 

The Chairman. Do you remember this man? 

jNIr. Allenberg. No, sir. 

The Chairman. Read his name. 

Mr. Allenberg. No ; I don't remember him at all. 

The Chairman. Do you remember that name as being at your hotel ? 

Mr. Allenberg. I remember a De Carlo. We had three pictures, 
Senator, but I don't remember which one. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Angelo De Carlo received in evidence as exhibit 
No. 72.) 

The Chairman. Do you know this person ? 

Mr. Allenberg. No, sir. 

The Chairman. Read his name. 

Mr. Allenberg. No ; I don't know him. I never saw him. 

Tlie Chairman. What is the name on that ? 

Mr. Allenberg. Riga. 

The Chairman. That will be received and made a part of the record. 

(Photograph of William Riga received in evidence as exhibit 
No. 73.) 

The Chairman. Do you know this person ? 



106 lORG'ANIZED CRIME: IN USTTERSTATE COMMERCE 

Mr. Allenberg. That is Joe Massei. 
The Chairman. Where is he from? 
Mr. Allenberg. From Detroit. 

The Chairman. Was he a guest at the Wofford Hotel ? 
Mr. Allenberg. No, sir. 
The Chairman. Where did you know him? 

Mr. Ali^nberg. He used to visit King and Carfano and I met him 
around there. 

Mr. Halley. Is Massei interested in any gambling enterprise in the 
Miami vicinity that you know of? 

Mr. Allenberg. Only by reputation that I have heard ; Greenacres 
is the place I heard. 

Mr. Halley. He has a very substantial interest in the so-called big 
crap games, doesn't he ? 

Mr. Allenberg. I am not sure what it is, but I know he is supposed 
to have a substantial interest in Greenacres. He also has a legitimate 
business here — the Miami Provision Co. 

The Chairman. What is the Miami Provision Co.? 

Mr. Allenberg. A meat company. 

The Chairman. Is that located on the beach ? 

Mr. Allenberg. No ; it is located in Miami. 

The Chairman. Does he have an interest, direct or indirect, in the 
Wotford Hotel, or did he have? 

Mr. Allenberg. Not that I know of. 

The Chairman. How about the Boulevard Hotel? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of Joseph Massei received in evidence as exhibit No. 
74.) 

The Chairman. Do you know this person? 

Mr. Allenberg. No, sir. 

The Chairman. Read his name. 

Mr. Allenberg. Lefty Clark. 

The Chairman. Do you know Bischoff ? (Alias Lefty Clark.) 

Mr. Allenberg. Lefty Clark. 

Tlie Chairman. Look at him. Do you recognize him ? 

Mr. Allenberg. He got fatter, think, since this picture. 

The Chairman. Was he a guest at the Wotford Hotel ? 

Mr. Allenberg. No, sir. 

The Chairman. Where did you know him ? 

Mr. Allenberg. I met him around the Wofford Hotel. He never 
lived there. 

The Chairman. What is his legitimate interest in Miami? 

Mr. Allenbeug. I don't know that he has any. 

The Chairman. Illegitimate interest? 

Mr. Allenberg. Greenacres. 

The Chairman. You saw him around the Wofford Hotel? 

Mr. Allenberg. I would say that I didn't. 

The Chairman. That will be received and made a ])art of the record. 

(Photogra])h of AVilliam BisclioH'. alias Lefty Clerk, received in | 
evidence as exiiibit No. 75.) 

The Chairman. Do you know this person? 

Mr. Allenberg. No, sir; I don't know him. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 107 

The Cpiairmax. Look at his name. 

Mr. Allenberg. No, sir; I don't recognize him. Louis Ricciardi. 
The Chairman. That will be received and made a part of the record. 
(Photograph of Louis Ricciardi received in evidence as exhibit 
No. 76.) 

The Chairman. Do you know Joe Burnstein? 

Mr. Allenberg. No, sir. 

The Chairman. Or James Burnett? Do you recognize that pic- 
ture? 

Mr. Allenberg. I don't recognize it. 

The Chairman. Never saw him before ? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the rec- 
ord. 

(Photograph of Joe Burnstein received in evidence as exhibit No. 
77.) 

The Chairman. How about Pete Licavoli or Little Pete? Do you 
remember him ? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name and his aliases. 

Mr. Allenberg. I don't know him. 

The Chairman. That will be received and made a part of the rec- 
ord. 

(Photograph of Pete Licavoli received in evidence as exhibit No. 
78.) 

The Chairman. Do you know Isadore Blumenfield ? 

Mr. Allenberg. No, sir ; I do not. 

The Chairman. Did you ever see his name before ? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Isadore Blumenfield received in evidence as exliibit 
No. 79.) 

The Chairman. Do you recognize this person ? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his name. 

Mr. Allenberg. I know the man by name, but I don't even know 
him. 

The Chairman. Was he a guest at your hotel ? 

Mr. Allenberg. No, sir; he never stopped there. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Martin Francis Guilfoyle received in evidence as 
exhibit No. 80.) 

The Chairman. How about the Fischetti boys? 

Mr. Allenberg. I know them by name. 

The Chairman. Did they stop at the Woiford? 

Mr. Allenberg. No, sir. 

The Chairman. Where did they stop ? 

Mr. Allenberg. I don't know. 

The Chairman. Did you ever see them in Miami? 

Mr. Allenberg. On Twenty-third Street. 

The Chairman. Did they ever come to the WofFord Hotel ? 

Mr. Allenberg. They have a home here, as I understand it. 

The Chairman. You do know them ? 

Mr. Allenberg. Yes, sir. 



108 ORGANIZED CRIIME IN INTERSTATE COMMERCE 

The Chairman. Is this a picture of Charles Fischetti ? 

Mr. Allenber(?. Yes, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Charles Fischetti received in evidence as exhibit 
No. 81.) 

The Chairman. What about Murray Humphrey. 

Mr. Allenberg. I don't laiow him. I don't remember him. 

The Chairman. Do you know his name ? 

Mr. Allenberg. Only from seeing it in the newspapers. 

The Chairman. You have never seen him personally ? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Murray Humphrey received in evidence as exhibit 
No. 82.) 

The Chairman. Do you know this man ? 

Mr. Allenberg. He has been in the vicinity on Twenty-fourth 
Street. 

The Chairman. Where is he from ? 

Mr. Allenberg. Either Detroit or Chicago. 

The Chairman. Was he a part of the old Capone syndicate? 

Mr. Allenberg. I don't know it, except from what I have heard. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Martin Accardo received in evidence as exhibit 
No. 83.) 

(Photographs of Max Caldwell and Paul Viela received in evidence 
as exhibits Nos. 84 and 85, respectively.) 

The Chairman. Do you recognize this picture? 

Mr. Allenberg. No, sir. 

The Chairman. Ralph Buglio? 

Mr. Allenberg. I don't know him. 

The Chairman. Was he a guest of the hotel ? 

Mr. Allenberg. I would say "No." 

The Chairman. This will be received in evidence and made a part 
of the record. 

(Photograph of Ralph Buglio received in evidence as exhibit 
No. 86.) 

The Chairman. Willie Heeney ? Do you know him ? 

Mr. Allenberg. No, sir ; I do not know him. 

The Chairman. That will be received and made a part of the 
record. 

(Photograph of William Heeney received in evidence as exhibit 
No. 87.) 

Mr. Allenberg. Is that the same man that might have a liquor 
store on Washington Avenue? I don't know him, either, but there 
is another man by the name of William Heeney. 

The Chairman. Do you know Nig Rosen or Harry Rosen? 

Mr. Allenberg. No, sir. 

The Chairman. Look at his picture and see if you recognize him. 

Mr. Allenberg. No, sir ; I do not recognize him. 

The Chairman. Have you ever heard his name ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Has he ever been a guest of the Wofford Hotel? 

Mr. Allenberg. I don't think so. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 109 

The Chairman. That will be received in evidence and made a part 
of the record. 

(Photograph of Harry Rosen received in evidence as exhibit No. 
88.) 

The Chairman. Samuel Hoffman? 

Mr. Allenberg. I don't recognize him, either. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Samuel Hoffman received in evidence as exhibit 
No. 89.) 

The Chairman. David Glass ? 

Mr. Allenberg. I know him. 

The Chairman. Where did you know him ? 

Mr. Allenberg. He was operating the Grand Hotel. He is in the 
hotel business. 

The Chairman. Is he still in the hotel business ? 

Mr. Allenberg. He is over at the Sands Hotel. 

The Chairman. Does he operate the Sands Hotel ? 

Mr. Allenberg. I think so. 

The Chairman. Where is Rosen from ? 

Mr. Allenberg. This is David Glass. 

The Chairman. I mean David Glass. 

Mr. Allenberg. He is from Philadelphia. 

The Chairman. And Rosen is from Philadelphia, too, isn't he? 

Mr. Allenberg. That I don't know. 

The Chairman. That will be received and made a part of the record. 

(Photograph of David Glass received in evidence as exhibit No. 90.) 

The Chairman. Do you know Jack Silver ? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

( Photograph of Jack Silver received in evidence as exhibit No. 91.) 

The Chairman. Do you know Max Segal ? 

INIr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Max Segal received in evidence as exhibit No. 92.) 

The Chairman. Do you recognize this picture ? 

Mr. Allenberg. No; I don't. 

The Chairman. As Frank Russo ? 

Mr. Allenberg. No, sir. 

The CiiAiR3iAN. That will be received and made a part of the record. 

(Photograph of Frank Russo received in evidence as exhibit No. 93.) 

The Chairman. Do you know this man's name ? 

Mr. Allenberg. No, sir. 

Tlie Chairman. Abe Martin, alias Abe Glassman ? 

Mr. Allenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Abe Martin received in evidence as exhibit No. 94.) 

The Chairman. Do you know John Rosen or Edwin Goldberg or 
Irving Greenberg? 

Mr. Allenberg. No ; I don't know him. 

The Chairman. That will be received and made a part of the record. 

(Photograph of John Rosen received in evidence as exhibit No. 95.) 

The Chairman. Do you know Nathan Stromberg? 

Mr. Allenberg. No, sir. 



110 (ORGANIZED CRttMEl IN INTERSTATE COMMERCE 

7 'he Chairman. That will be received and made a part of the record. 

(Photograph of Nathan Stromberg received in evidence as exhibit 
No. 96.) 

The Chairman. Do you know Joseph Herman Kriss? 

Mr. Allenberg. No, sir. 

The Ciiair]\ian. That will be received and made a part of the record. 

(Photograph of Joseph Herman Kriss received in evidence as 
exhibit No. 97.) 

The Chairman. Do you know Tony Narcisi ? 

Mr. Aelenberg. No, sir. 

The Chairman. That will be received and made a part of the record. 

(Photograph of Tony Narcisi received in evidence as Exhibit No. 
98.) 

The Chairman. Where did the Philadelphia gang stay when they 
were down here? 

Mr. Allenberg. I don't know, Senator. 

The Chairman. At the Sands Hotel ? 

Mr. Allenberg. I don't know. 

The Chairman. Do you know Frank Matteo ? 

Mr. Allenberg. No ; I don't know this fellow. 

The Chairman. That will be received and made a j^art of the record. 

(Photograph of Frank Matteo received in evidence as Exhibit No. 
99.) 

The Chairman. Mr. Allenberg, a remarkable number of these peo- 
ple who are big-time gamblers and acquaintances of yours stayed at 
your hotel. 

Mr. Allenberg. I didn't know the reputation of these people until 
the last few years, Senator, and they lived there years ago, before any 
of us knew of their reputations or had it called to their attention. 

The Chairman. You knew what they were doing in your hotel ? 

Mr. Allenberg. Well, they 

The Chairman. They were gamblers and they made your hotel 
their headquarters for their activities. 

Mr. Allenberg. I can't say. Senator. I don't know. Some of them 
were gamblers, but I didn't know all of them to be gamblers. People 
come down here to go to the race tracks every day, anxious to gamble, 
and they gamble thousands of dollars at night. 

Mr. Halley. Mr. Aallenberg, you were in the Wotford Hotel from 
1941 to 1948; is that right? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And in the Boulevard Hotel in 1946, 1947, 1948, and 
1949? 

Mr. Allenberg. Yes. My lease just terminated. 

Mr. Halley. When did the lease at the Boulevard Hotel terminate? 

Mr. Allenberg. April 1, 1950. 

Mr. Halley. Eight up to April 1, 1950, you have continued to 
operate the Boulevard Hotel ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And right up to April 1950 various of Erickson's 
people stayed at the Boulevard Hotel ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Who were they ? 

Mr. Allenbeu(;. Bert Briggs, Cantor, Zeldow^; that is all I can 
remember offhand that stayed there this last winter. I wasn't around 



ORGANIZED CRIME IN INTERSTATE COMMERCE 111 

tlie hotel last winter because I ^Yas over operating the Robert Richter 
Hotel. 

Mr, H ALLEY. Did they continue to operate their gamblino- from the 
Boulevard Hotel up there last winter, as you have previously testified 
they did in the past? 

Mr. Allenherg. I would say that they have not changed any. 

Mr. Halley. As I understand your testimony, Briggs ancl Cantor 
in particular would be in charge of the operations within the track? 

Mr. Allenbekg. That is right. 

Mr. Halley. At what tracks did they operate? 

Mr. Allenberg. Any track that happened to be open. 

Mv. Halley. At the track they W'Ould take bets from bettors at the 
track personally, and they had a method of receiving bets by telephone ? 

Mr. Allenberg. They wouldn't receive the bets by telephone in the 
race track. That would have to be outside of the track. 

Mr. Halley. They had an associate outside of the track? 

Mr. Allenberg. Yes. 

Mr. Halley. Who reported to them as soon as he got the bet? 

Mr. Allenberg. They would hit the machines and make the bet. 
That was not done for the purpose of betting with them. That was 
for the purpose of putting money into the machines. These bets out- 
side the track were sent to the race tracks. That is what they call 
comeback money in race tracks. 

Mr. Halley. What would be in that for Erickson, taking bets from 
the machines? Why would he do that? 

Mr. Allenberg. The reason they do that is that comes not from 
down here, but from Jersey or wherever else they might be or have 
been operating, and if they got big bets from Tom Jones and if Tom 
hit, they wanted to reduce tlie size of the bet that they took. 

Mr. Halley. They w^oulcl put it in the machine if they didn't want 
to book it themselves? 

Mr. Allenberg. That is right. 

Mr. Halley. Who operated that comeback operation? What in- 
dividual ? 

Mr. Allenberg. Who did it the last winter, I don't know. 

Mr. Halley. Who did it before that ? 

Mr. Allenberg, I can't think of his name. The fellow is dead. 
He died here last year. 

Mr. Halley. One of Erickson's people ? 

Mr. Allenberg. Yes, sir. 
_ Mr. Halley. Did they also receive bets by telephone from other 
cities ? 

Mr. Allenberg. Not at the Boulevard Hotel. 

Mr. Hallp:y. Where did they receive them? 

Mr. Allenberg. That would be in the other office, not down here. 

Mr. Halley. You are speaking of the Teepee Grill ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Tell the committee about that. 

Mr. Allenberg. I don't know^ anything about the Teepee Grill. 

Mr. Halley. You must. 

Mr. Allenberg. I am telling you that all I know is that it is in the 
nature of a night club. That is all I know of the Teepee Grill. I was 
never there in my life. I wouldn't know where it is or anything. 



112 ORGANIZED CRIIMEI IN INTERSTATE COMMERCE 

Mr. Hallet. There was a very elaborate operation on the floor 
above the night ckib of the Teepee Grill and you know about it, I am 
sure. I think this : That it is time for you to convince the committee 
that you are willing to tell the committee what you know. 

Mr. Allenberg. This is the first time I ever knew the Teepee Grill 
had anything upstairs over their show place. This is the first time that 
I ever heard of it. 

Mr. Haleey. Where did the wires come from out of the city for the 
booking of bets by telephone ? 

Mr. Allenberg. I don't know. 

Mr. Halley. You know that they did come in; that bets were 
booked and received by phone ? 

Mr. Allenberg. There were bets made all over the United States 
in different gambling houses. 

Mr. Halley. I mean in Miami — the people who stayed at the Boule- 
vard Hotel — Briggs, Cantor, and their associates received bets by 
telephone, didn't they ? 

Mr. Allenberg. Not at the Boulevard Hotel. 

Mr. Halley. They received them somewhere. 

Mr. Allenberg. I don't know where they received them. 

Mr. Halley. You know they received such bets. 

Mr. Allenberg. They may have had an office where the telephones 
were but I don't know where it was and didn't know anything about it. 

Mr. Halley. You know there was such an office. 

Mr. Allenberg. There was an office. 

Mr. Halley. Where they received telephone bets ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. Didn't they report every day to Erickson or his ac- 
countant in New York on the results of the day's operations? 

Mr. Allenberg. I would say that they did, 

Mr. Halley. How did they report ? 

Mr. Allenberg. I don't know ; I suppose by telephone or by letter. 

Mr. Halley. Wasn't that all done in the Boulevard Hotel ? 

Mr. Allenberg. I would assume it was, but I don't know. I would 
say "Yes" ; it was done that way. 

Mr. Halley. These were all your close friends ? 

Mr. Allenberg. Yes, but I didn't do — I don't know how they oper- 
ated their business. 

Mr. Halley. They didn't shut their doors to you. 

Mr. Allenberg. They didn't if I wanted to go in and see what went 
on, but I never went in. 

Mr. Halley. You knew what was going on? 

Mr. Allenberg. They sent their notices, or whatever they had. 

Mr. Halley. Many people around the Boulevard knew, so you must 
have known, too. 

Mr. Allenberg. Of course I knew it was going on, but I didn't 
know what they were doing. I don't know what they had and I 
didn't know how they handled it. 

Mr. Halley. At the end of each day, the men at the track would 
come in with their money. 

Mr. Allenberg. Yes. 

Mr. Halley. And somebody would sit down to total it up, Avouldn't 
they? 

Mr. Allenberg. Yes, sir. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 113 

Mr. Hai.ley. And that was done upstairs in the Boulevard Hotel? 
Mr. Allenberg. Yes. 

Mr. Halley. And the next morning some of the checks went to 
the bank to be cashed, didn't they ? 
Mr. Allenberg. Yes. 
Mr. Halley. Who would do that ? 

Mr. Allenberg. I would cash checks for them if they asked me to. 
Mr. Halley. Would you endorse the checks ? 

Mr. Allenberg. Sometimes. The betting at the race track was 
legal. There were mutuel windows where everybody was betting. 
It was all mixed up in a situation where people are betting on horses, 
and it didn't seem to be anything out of line. Everybody was play- 
ing horses or gambling down there or doing one of those kinds of 
things. You cTidn't even think of it. 

Mr. Halley. You have stated the atmosphere and you have stated 
the reasons and also the facts. The committee is not at this moment 
sitting in judgment. The committee is sitting to get the facts. If 
you want to state as part of the facts how widespread it was, ex- 
plain it- 

Mr. Allenberg, I can only tell you as much as happened around 
the Boulevard Hotel. 

Whether there were three or four or five men who would come 
back at night and go to their room — and assume for the sake of 

the record that they compiled their record of the day there 

Mr. Halley. You don't have to assume it. You know it, don't 
you? 

Mr. Allenberg. Yes; I know it. I never saw them do it, but I 
would assume that is what happened. 

Mr. Halley. You know it beyond any doubt. There is no doubt 
in your mind that that is what they were doing up there, is there ? 
Mr. Allenberg. Yes, sir. 

Mr. Halley. Did Erickson also receive bets from other bookies 
and other gamblers in the nature of lay-offs? 

Mr. Allenberg. That would be at the race track. 
Mr. Halley. Did he do it ? 
Mr. Allenberg. I would say that he did. 

Mr. Halley, Who are some of the people who laid off bets with 
Erickson ? You can help and I think you should. 

Mr. Allenberg. I am telling you from reputation of the fellows 
that played horses or books out there, and I would assume those would 
be the ones that would bet with him — Max Courtney, fellows like Joe 
Boyle — I don't know whether he ever did or not, but I know they are 
gamblers. George Scherman was a bookmaker out there, but I don't 
know to what extent he might have bet with Erickson. They were 
all bookmakers. 

Mr. Halley. I would like to turn to another subject for the moment. 
What is the Abe Allenberg Contracting organization — H. L. Straus ? 
Mr. Allenberg. There is no such thing as an Abe Allenberg Con- 
tracting Co. There is a contract between Abe Allenberg and H. L. 
Straus. 

Mr. Halley. What is that? 

Mr. Allenberg. A contract in reference to the sale of the race 
track. 



114 ORGANIZED CRIME IN INTERSTATT: COMMERCE 

Mr. Hallet. What was the price for wliich the race track was sold? 

Mr. Allenberg. It was about — a little over a million dollars — and 
Erickson had 20 percent of it. There was also — that is the contract 
you are talking about, that paid $80,000 to John Patton. Frank 
Erickson 

Mr. Halley. Who is John Patton ? 

Mr. Allenberg. John Patton was one of the owners of the Gables 
Racing Association stock. 

Mr. Hallet. He was in with Erickson in this Gables Eacing 
Association ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. He represented the Capone syndicate, didn't he? 

Mr. Allenberg. I couldn't say that. 

Mr. Halley. He comes from Chicago? 

Mr. Allenberg. Yes. 

Mr. Halley. Wasn't he one of Capone's men ? 

Mr. Allenberg. I don't know. I wouldn't say that he was. 

Mr. Halley. Would you say that he wasn't ? 

Mr. Allenberg. I would snj he wasn't because I happen to know 
the man. 

Mr. Halley. When did you last hear from Patton? 

Mr. Allenberg. I heard from Patton yesterday. 

Mr. Halley. Did you get a letter from him ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. In what connection ? 

Mr. Allenberg. In reference to this contract. The balance of the 
payment was made, and I didn't have the contract and I didn't know 
where it was. The lawyers in Baltimore prepared the assignment. 
The contract is in my name, and when the assignment is executed 
either the check is made to me and I endorse it over to Patton as his 
money — that must be the contract with Straus. 

Mr. Halley. Were you paid a commission in connection with the 
sale of Tropical Park? 

Mr. Allenberg. This is the commission. 

Mr. Halley. $36,000? 

Mr. Allenberg. No; it was $80,000 all togethei-, and Patton got 
$16 — Erickson and Patton got $80,000, and they got paid in propor- 
tion of 20 to 36. In other words. Erickson got five-ninths and Patton 
got four-ninths. 

Mr. Halley. Did you ever get any part of it from Erickson ? 

Mr. Allenberg. No, sir. 

Mr. Halley. You were still on salary ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. What is the American Totalisator Co. ? 

Mr. Allenberg. They are the people that were associated with 
the purchase of this (rabies Racing Association stock. 

Mr. Halley. Who are those ]:)eeple? 

Mr. Allenberg. Gurney Monks, liis brother: H. L. Straus. Straus 
is dead. Thei'c were two otlier partners, and I have to deliver 
their 

Mr. Halley. Tliat is the conclusion of the Gables transaction ? 

Mr. Allenberg. That is the last of the Gables transaction that I 
have anything to do with. It terminates Avith this. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 115 

]Mr. Hallky. Did you have a tradiiiof authorization for Frank 
Erickson here in Miami to trade at any stock-brokerage housed 

Mr. ALLENBERci. I never traded for him. 

Mr. Halleyn Did you have an authorization to do it^ 

Mr. Allenberg. I may have had. I don't remember. 

]Mr. Halley. Did you have a power of attorney from Erickson? 

Mr. Allenberg. 1 don't remember, Mr. Halley, if I did. 

Mr. Halley. How did Erickson hapi)en to invest in the Colonial 
Inn? Did that happen after you came down here lepresenting him? 

Mr. Allenberg. Yes, sir. 

Mr. Halle;y. In what year did he go into the Colonial Inn? 

Mr. Allenberg. I would say that he Avent into the Colonial Inn 
when Ben Marden owned it. 

Mr. Halley. AVhen was that ? 

Mr. Allenberg. Not too many years ago. 

Mr, Halley. Before the wari' 

Mr. Allenberg. Yes, sir. I would say before the war. 

Mr. Halley. Long before the war or just before the war; aronnd 
1940, would you say ? 

Mr. Allenberg. I am trying to — I think he had an interest — it is a 
matter of record. 

Mr. Halley. After you were in Tropical Park? 

Mr. Allenberg. Yes, sir. 

Mv. Halley. And before you sold out of Tropical Park; is that 
right ? 

Mr. Allenberg. That I don't remember. 

Mr. Halley. Under what circumstances did Erickson go into the 
Colonial Inn ? 

Mr. Allenberg. That I don't know. I had nothing to do with 
that. 

Mr. Halley. Did Briggs have a part of Colonial Inn? 

Mv. Allenberg. That I don't know, except what I have seen in the 
records that have come out. I don't know" otherwise. 

Mr. Halley. Would it be your judgment that Briggs' interest was 
his own or was he simply holding it for Erickson, knowing the rela- 
tion between the men ? 

Mr. Allenberg. It would seem to me that Briggs would be on a sal- 
ary basis for that, as far as I can see. 

Mr. Halley. And if he held an interest he held it as a trustee for 
Erickson ? 

Mr. Allenberg. I would imagine that might be the case. That is 
my supposition, the same as yours. 

Mr. Halley. Adonis was in that, too, wasn't he? 

Mr. Allenberg. I don't know. I have heard that he w^as. 

Mr. Halley. And Lansky? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. And Litteral ? 

Mr. Allenberg. Litteral? I haven't heard he was. 

Mr. Halley. Alo? 

Mr. Allenberc;. I don't know. I haven't even heard about him. 

Mr. Halley. Was Erickson also in Greenacres? 

Mr. Allenberg. I think that Greenacres and Colonial Inn, as I 
knew\ was one operation. I don't know whether it was true or not. 

Mr. Halley. Is that also true of Club Boheme? 



116 ORGANIZED CRIME', IN INTERSTATE COMMERCE 

Mr. Allenberg. Yes. I am saying not that I know anything of my 
own knowledge. I am saying what my supposition is. 

Mr. Halley. How do these fellows operate here openly, Mr. Allen- 
berg? Do they pay off the authorities? 

Mr. Allenberg. Your guess is as good as mine. I haven't any more 
right to my opinion than anybody else has. 

Mr. Halley. The sheriff doesn't interfere with these operations, 
does he ? 
Mr. Allenberg. No. 

Mr. Halley. Nor does the chief of police ? 

Mr. Allenberg. No. That doesn't necessarily mean always that 
they would be paid off. 

Mr. Halley. The mayor doesn't interfere either ? 
Mr. Allenberg. No. 

Mr. Halley. Do you know all of these gentlemen personally ? 
Mr. Allenberg. Most of them. 

Mr. Halley. Do you have any doubt that they know that this 
gambling goes on openly all over the county ? 

Mr. Allenberg. I would say they would have no doubt about the 
fact that it was going on. 

Mr. Halley. They would have to be blind ? 
Mr. Allenberg. Yes. 

Mr. Halley. It goes on in the open in practically every hotel? 
Every hotel has a book ? 

Mr. Allenberg. Yes ; except my hotel. 
Mr. Halley. The Robert Richter does not ? 
Mr. Allenberg. It did not have it under my operation. 
Mr. Halley. Will you state as a fact that the Robert Richter did 
not have a book? 

Mr. Allenberg. That is right. 
Mr. Halley. Did the Boulevard have a book ? 
Mr. Allenberg. No, sir. 
Mr. Halley. How about the Wofford ? 

Mr. Allenberg. The Wofford had no book when I was there. 
Mr. Halley. Didn't the Wofford originally have a set-up for 
gambling ? 

Mr. Allenberg. No, sir. That was a figment of somebody's imagi- 
nation. The sheriff came over there with the patrol wagon on the 
theory that the whole top floor was a gambling house. Tliere wasn't 
anything there. There were people living there. 

Mr. Halley. Just before Erickson decided to go to the Colonial 
Inn, wasn't it held to be a fact that the Wofford M\as being used for ' 
gambling? 

Mr. Allenberg. No, sir. 

Mr. Halley. Isn't that why he originally financed the purchase 
for you ? 

Mr. Allenberg. There is not the slightest truth in that. 
Mr. Halley. Did you ever see any gambling equipment in the hotel ? 
Mr. Allenberg. No, sir ; I never did. 
Mr. Halley. Even when you first went into it ? 

Mr. Allenberg. No, sir. Tliose fellows used to go upstairs and 
used to play cards for very heavy stakes, such as poker or gin, but 
they played for big money. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 117 

Mr. Halley. How do you explain the fact that the officials do not 
interfere with these operations? p ,. • i . ^i 

Mr Allenberg. There must be some kind of political set-up they 
are attached to. They might put money into the campaign funds or 

something. , , ^ • i i i 

The Chairman. Well, Mr. Allenberg, you have done considerable 

fixing yourself , haven't you ? 

Mr. Allenberg. No, sir, Senator ; I have not done any hxmg. i hat 

is not m • ^r) 

The Chairman. You never fixed up a public otlicial '. 

Mr. Allenberg. No, sir; I have not. 

The Chairman. This John Patton that you referred to m your 
records a few minutes ago as owning part of Tropical Park race track 
with Erickson — is that correct? 

Mr. Allenberg. Yes, sir. -,■ . j- r^i- 

The Ch\irman. Wasn't he one of the Capone syndicate from Uhi- 
cao-o^ Isn't that the man with a criminal record from Chicago? 

Mr. Allenberg. I do know that he has a criminal record, Senator. 

The Chairman. He is a notorious gambler in this section of the 

^°Mi\ Allenberg. I don't know whether he is notorious as a gambler. 

He is notorious in having his name linked with Capone. 
The Chairman. He still has a home at the beach ? 
Mr. Allenberg. Yes, sir. , o 

The Chairman. What other interests does he have here ( ^ 
Mr. Allenberg. He is associated with the :Miami Beach Kennel 

Club — he or his son. i . , -a 

The Chairman. I see here that you got to be honorary deputy sheriti 

of Dade County. 

Mr. Allenberg. Yes, sir. 

The Chairman. Is that from Jimmy Sullivan? 

Mr. Allenberg. He is the sheriff of Dade County ; yes, sir. 

The Chairman. I have a card here showing that you are an honorary 
member. That will be filed as an exhibit. . 

(Card showing Abe Allenberg honorary deputy sheriff received m 
evidence as exhibit No. 100. See appendix, p. 732. ) 

Mr. Allenberg. I asked him for the card. 

The Chairman. Did he know about your association with all these 
gamblers or criminals ? , , • i i j 

Mr. Allenberg. I know more people that have unblemished records 
among those I happened to have known years ago and with whom I 
have been associated, but they didn't have records at that time. 

The Chairman. Did you ask Jimmy Sullivan to make you a deputy 
sheriff? 

Mr. Allenberg. Yes, sir. 

The Chairman. Your friendship wath him has been rather close 
for over quite some period of time ? 

Mr. Allenberg. I have known him pretty well. 

The Chairman. And have always supported him in all of his elec- 
tions ? 

Mr. Allenberg. Yes, sir. 

The Chairman. How long have you know him ? 

Mr. Allenberg. 'Since he ran for sheriff the first time. 

The Chairman. How long has that been ? 



118 lORGANIZED CRIME: IN INTERvSTATE C'0]VIMERCE 

Mr, Allenberg. Eight years ago. 

The Chairman. Who is the chief of police at Miami Beach? 

Mr. Allenberg. Albert Simpson. 

The Chairman. Are you pretty close with him ? 

Mr. Allenberg. Yes, sir; I know him pretty well. When I say 
"close," I mean I know him. 

The Chairman. And you supported him in his election ? 

Mr. Allenberg. Simpson? No, sir. They are not elected. They 
are appointed. 

The Chairman. How about the mayor ? 

Mr. Allenberg. I didn't take any part in the mayor's election. 

The Chairman. Who is the mayor ? 

Mr. Allenberg. The mayor is Harold Turk. 

The Chairman, Do you know him well ? 

Mr. Allenberg. Yes, sir. 

The Chairman. You had the Florida Sheriffs' Association out at 
your hotel, didn't you ? 

Mr. Allenberg. Yes, sir. 

The Chairman. And you had a special card to the Florida Sheriffs' 
Association in 1948 ^ 

Mr. Allenberg. Yes, sir. 

The Chairman. That will be filed as an exhibit. 

(Courtesy card, Florida Sheriffs' Association, Abe Allenberg, 
received in evidence as exhibit No. 101, See appendix, p. 733.) 

Mr. xVllenberg. The Florida sheriffs go to different cities for their 
convention. 

The Chairman. What isthis paper ? 

Mr. Allenberg. This letter is apparently a copy of a letter 

The Chairman. Which you wrote to the Miami Beach Kennel Club 
dated June 15, 1941:. 

Will you read the letter? It is very short. 

Mr. Allenberg. When they had the convention they stayed at the 
Wofford Hotel June 12 and 13, and this was for the rooms they occu- 
pied there. 

The Chairman. This Mr. Johnston in this letter is the man who 
owns a number of dog tracks around here ? 

Mr. Allenberg. Yes, sir. 

The Chairman. And does he have this Kennel Club to whom this 
letter is addressed? 

Mr. Allenberg. He is associated with it. 

The Chairman. Why did you send it to that Kennel Club ? 

Mr, Allenberg, That was his address. 

The Chairman. The letter is addressed to the Kennel Club, isn't 
it? 

Mr. Allenberg. That is correct. He might have told me to send the 
bill to the Kennel Club. 

The Chairman. Let tliat be filed as an exhibit. 

(Letter to Miami Beach Kennel Chib re Wofford Hotel bill received 
in evidence as exhibit No. 102. See appendix, p. 733. ) 

The Chairman. Who is Jim Ponzio? 

Mr. Allenberg. A restaurant man from New York, a personal 
friend of mine. He has never been down here. 

The Chair^nian. Is he in a racket ? 

Mr. Allenberg. No ; he has a diner. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 119 

The Chairman. And this is a letter that you received from him? 

Mr. Allenberg. Yes, sir. These people were making a diner for 
him and there was trouble with the electrical work and they had to try 
to have somebody fix it up for him. 

The Chairman. Let us mark this as "Exhibit No. 103." 

(Letter from Jim Ponzio to Abe Allenberg dated September 27, 
1948, received in evidence as exhibit No. 103. See appendix, p. 734.) 

The Chairman. In this letter it says : 

They are having difficulty with the electrical inspectors due chiefly to wiring. 
We encounter this from time to time and a few dollars will fix everything up. 
However, the chief electrical inspector's name in INIiami is Knox and his assist- 
ant's name is Couseu. If you will contact these two men personally or have 
your emissary in Miami take care of them and see that the thing is accepted, 
it would help things a great deal. 

Mr. Allenberg. It was not taken care of. 

The Chairman. Who is your emissary in Miami? 

Mr. Allenberg. I guess he means some of my political friends that 
I have around that might be able to see the thing was properly 
straightened out. 

The Chairman. You get things fixed up with your political friends? 

Mr. Allenberg. There might be a favor once in a while. It is not 
a question of fixing. 

The Chairman. He says, "P. S. I understand Senator Pepper is 
the man to give the O. K." 

Mr. Allenberg. Pepper didn't know anything about it. 

The Chairman. Did you ask Senator Pepper about this ? 

Mr. Allenberg. No, sir. 

The Chairman. How did he understand that? 

Mr. Allenberg. Maybe Kullman, the people who built the diner, 
told them that. They just used the man's name and didn't know what 
they were talking about. 

The Chairman. You apparently contributed $2,500 to the Demo- 
cratic National Committee on March 31, 1947; is that correct? 

Mr. Allenberg. I sold 10 tickets to the National Democratic Com- 
mittee to Frank Erickson. 

The Chairman. You sold 10 tickets? 

Mr. Allenberg. Yes, sir ; I sold 10 tickets. 

The Chairman. Where was the dinner? 

Mr. Allenberg. Honey Plaza Hotel. 

The Chairman. Is that what that $2,500 is for ? 

Mr. Allenberg. Yes, sir. 

The Chairman. What favor were you trying to get out of the Demo- 
cratic National Committee? 

Mr. Allenberg. Nothing in particular. 

The Chairman. Let's make that a part of the record. 

(Letter dated May 6, 1947, from George M. Killion, received in 
evidence as exhibit No. 104. See appendix, p. 734.) 

Mr. Allenberg. There was a lot money raised down here. 
Senator. 

The Chairman. Did Frank Erickson attend the dinner ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Did you attend the dinner? 

Mr. Allenberg. Yes, sir. 

The Chairman. Did Frank Costello attend the dinner? 

Mr. Allenberg. I don't think so. 

68958— 50— pt. 1 9 



120 ORGANIZED ORlIMEl IN INTE'RSTATE COMMERCE 

The Chairman. Who was the principal speaker at the dinner? 

Mr. Allenberg. I don't remember. 

The Chairman. Did you contribute anything to the Kepublican 
National Committee? 

Mr. Allenberg. No, sir. They didn't have any dinner. 

The Chairman. Have you contributed to the Kepublican National 
Committee ? 

Mr. Allenberg. No, sir. 

The Chairman. Only the Democratic? 

Mr. Allenberg. Yes, sir. It happened to be one of those things 
that came along and there was a great hurrah made about it. 

The Chairman. Why didn't Frank Erickson buy anything in his 
own name ? 

Mr. Allenberg. I was the one that sold it. 

The Chair]man. You were the seller of the tickets ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Who got you to sell the tickets? Who spoke to 
you about it ? 

Mr. Allenberg. A. C. Carrara, of the Democratic national treas- 
urer's office. 

The Chairman. And he wrote you and asked you to sell some 
tickets ? 

Mr. Allenberg. He was doAvn here. 

The Chairman. Did he stay at the Wofford Hotel? 

jMr. Allenberg. I don't think so. 

The Chairman. Who is Ralph or Raphael W. Alpher? 

Mr. Allenberg. He was a lawyer in New York. 

The Chairman. Here is a letter from Ralph W. Alpher dated 
August 4, 1948. He signed it "Ralph'' so he must be a good friend 
of yours. 

Mr. Allenberg. Yes, sir. 

The Chairman. Let's make that letter an exhibit. 

(Letter dated August 4, 1948, signed "Ralph" received in evidence 
as exhibit No. 105. See appendix, p. 734.) 

The Chairman. Who is the Mr. Perlman or Pearlberg mentioned 
in this letter ? 

Mr. Allenberg. He is a man that lives here in town. 

The Chairman. What is his first name ? 

Mr. Allenberg. Jack. 

The Chairman. He talks about a contact with the Governor-elect. 
Is that Warren ? 

ISIr. Allenberg. Yes, sir. 

The Chairman. Did you investigate this matter and find out 
about it ? 

Mr. Allenberg. No, sir ; I did not. 

The Chairman. What is your association with Mr. Warren ? 

Mr. Allenberg. I know Mr. Warren very well. 

The Chairman. Did you contribute to his campaign? 

Mr. Allenberg. No, sir; I did not, except in a very small way; 
maybe a couple of hundred dollars. 

The Chairman. In Tennessee a couple of hundred dollars is a pretty 
substantial contribution. How mucli did you contribute to Governor 
Warren's campaign ? 

Mr. Allenberg. About $300. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 121 

The Chairman. Do you want to think about that again? 

Mr. Allenberg. No, sir. 

The Chairman. Who did you contribute it through? 

Mr. Allenberg. Through myself. 

The Chairman.- Who did you contribute it through ? To whom did 
you give it? 

Mr. Allenberg. It went out as expenses. I bought signs. 

The Chairman. You just gave $300 and you paid for signs and 
things of that sort? 

Mr. Allenberg. Yes, sir. 

The Chairman. Did you send something to his campaign manager 
here in Dade County ? 

Mr. Allenberg. No, sir ; because I helped campaign myself over on 
the Beach. 

The Chairman. You were a part of the management yourself ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Did you collect money for him ? 

Mr. Allenberg. Yes, sir. 

The Chairman. How much did you collect ? 

Mr. Allenberg. $5-, $6- or $8,000. I just don't remember offhand. 

The Chairman. There is quite a difference between $5,000 and 
$8,000. 

Mr. Allenberg. I know, but I haven't computed it, Senator. I 
never figured it. 

The Chairman. Do you still have your records ? 

Mr. Allenberg. Yes ; I have some of the records here. 

The Chairman. To whom did you turn that over ? 

Mr. Allenberg. That went to the expenses of the campaign. 

The Chairman. Were you his manager over on the Beach? 

Mr. Allenberg. No, sir ; I was the treasurer. 

The Chairman. How about Frank Erickson? Did he contribute, 
too? 

Mr. Allenberg. No, sir ; he had nothing to do with it. 

The Chairman. How about Little Augie ? 

Mr. Allenberg. Nothing. 

The Chairman. Or any other gamblers. . Did you get any money 
out of them ? 

Mr. Allenberg. Never got any money from any of those fellows. 
Whatever it is, I have a record of it here. 

The Chairman. Mr. Allenberg, how old are you ? 

Mr. Allenberg. I will be 59 on the 25th of October. 

The Chairman. Are you married? 

Mr. Allenberg. Yes, sir. 

The Chairman. How much family do you have ? 

Mr. Allenberg. Wife and two children. 

The Chairman. Where were you born? 

Mr. Allenberg. Portland, Oreg. 

The Chairman. Did you go to school out there ? 

Mr. Allenberg. No, sir. I went to school in New York. 

The Chairman. You and your family moved to New York? 

Mr. Allenberg. Yes, sir. 

The Chairman. You are a lawyer? 

Mr. Allenberg. Yes, sir. 

The Chairman. ^-NHiere did you study law ? 



122 ORGANIZED CHIMEi IN INTERSTATE COMMERCE 

Mr. Allenberg. New York Law School. 

The Chairman. Where did you practice in New York ? 

Mr. Allenberg. I practiced at 115 Broadway and 165 Broadway. 

The Chairman. Who did you practice with at 115 Broadway? 

Mr. Allenberg. House, Grossman, and Vorhouse. 

The Chairman. And at 165 Broadway? 

Mr. Allenberg. By myself, and at 1482 Broadway I practiced by 
myself. That is up at Forty-second Street. 

The Chairman. And you represented Erickson when you were in 
New York? 

Mr. Allenberg. Yes, sir. 

The Chairman. How long did you represent him up there? 

Mr. Allenberg. About 2 years, I think. 

The Chairman. How about these other people that stayed at your 
hotel from New York, part of the so-called New York syndicate or 
gang? 

Mr. Allenberg. Senator, I never represented any of them. 

The Chairman. What difficulty was it that you got into in the 
practice of law? 

Mr. Allenberg. I didn't get into any difficulties. 

The Chairman. You didn't? 

Mr. Allenberg. No, sir. 

The Chairman. Are you still a member of the New York Bar? 

Mr. Allenberg. Yes, sir. 

The Chairman. Didn't have any disbarment proceedings? 

Mr. Allenberg. No, sir. 

The Chairman. And did you have a successful practice when you 
came down here? 

Mr. Allenberg. Fair. 

The Chairman. Erickson got you to come down ? 

Mr. Allenberg. I came down here representing him; yes, sir. 

The Chairman. And you just pulled up from the law practice? 

Mr. Allenberg. It didn't just come about that way. When I came 
down here, it was part of the agreement that somebody was to counter- 
sign the checks of the company until the mortgage was paid back, 
and he asked me if I was agreeable to staying down here for a few 
months, and the first thing I knew I took over the handling of all 
the business of the track, so it didn't take long until I was manager 
of the race track, and after everything else, I decided to stay down 
here. 

The Chairman. Wouldn't you consider yourself in this situation; 
that you are kind of a front for the gang ever since that time? 

Mr. Allenberg. I never tliought so, Senator. 

The Chairman. In other words, when they want to have some 
operations come in in Miami or Miami Beach or in tliis part of Florida, 
you get things arranged for them and you are the one they get in 
touch with? 

Mr. Allenberg. No, sir ; that is not so. 

The Chairman. How do you account for the fact that so many of 
these people stayed at your hotel and when you went to another hotel 
they moved with you? 

Mr. Allenberg. Not so many. Only the men in association with 
Erickson came to my hotel. Nobody else came, and at the Hotel 



ORGANIZED CRIME IN INTERSTATE COMMERCE 123 

WofFord they cam« there because of those fellows that were there — 
King and Carf ano — that is why they came there. 

The CiiAiRMAX. You didn't know King was a criminal when you 
went into partnership with him? 

Mr. Allenberg. No, sir; I did not. 

The Chairman. When you found out, did you terminate the 
partnership ? 

Mr. Allenberg. As soon as I could ; I did. 

The Chairman. It had been well known for quite some time, 
hadn't it? 

Mr. Allenberg. Not generally ; no. 

The Chairman. He was a pretty big criminal ? 

Mr. Allenberg. No, sir. This is 1945-46 when I got out of the 
Wofford Hotel. 

The Chairman. When Erickson made his first trip to Florida, he 
looked around and guided these people to you for you were his lawyer 
and he wouldn't leave them in the dark. 

Mr. Allenberg. These men didn't all come in there at once. They 
lived there at different times in the season. Maybe in February there 
might be 10 or 15. King was supposed to have had a good reputation 
so far as I was concerned, from the inquiries I made about him. 

The Chairjvian. Where did you make those inquiries? Did you 
ask Erickson if he had heard of King ? 

Mr. Allenberg. I didn't know King when I went there. 

The Chairman. When did you first learn who he was? 

Mr. Allenberg. I didn't learn anything about King until maybe 
a couple of years ago and these gentlemen started to make revelations 
about him. 

The Chairman. Didn't you know these people were all racketeers? 

Mr. Allenberg. No, sir. I knew they were in the gambling busi- 
ness, but I didn't know they were racketeers. 

The Chairman. You think it was just a coincidence, then, that they 
all gathered at the Boulevard Hotel ? 

Mr. Allenberg. They didn't gather in the Boulevard Hotel. You 
mean the Wofford. 

The Chairman. I mean the Wofford Hotel. 

Mr. Allenberg. It is not a coincidence. They were drawn there 
by those other two men that I was associated with, and that I didn't 
know. 

The Chairman. You knew that they all gambled up there together 
for tremendous stakes, didn't you ? 

Mr. Allenberg. Occasionally, they would. 

The Chairman. How much would the stakes be in those games ? 

Mr. Allenberg. Senator, it might run from $500 to $5,000. I 
never saw a game that went on up there. I never went into a room. 

The Chairman. Was that poker ? 

Mr. Allenberg. It could be poker or gin. 

The Chairman. All bunched around there ? 

Mr. Allenberg. Erickson didn't stay around there. 

The Chairman. "Wlio were some of the boys ? 

Mr. Allenberg. Carfano, King, and some of these other fellows 
whose names and pictures you have there. 

The Chairman. Did Aclonis hang around ? 

Mr. Allenberg. Not much ; only occasionally. 



124 lORGANIZED CRlIME IN INTEHSTATE COMMERCE 

The Chairman. Did you have a special room for him ? 

Mr. Allenberg. No, sir ; we did not. 

The Chairman. Massei ? 

Mr. Allenberg. He never lived at the hotel. 

The Chairman. Did he come to see the boys ? 

Mr. Allenberg, Once in a while he would come around. 

The Chairman. Mr. Halley ? 

Mr. Halley. Do you know that Massei is running the dope racket 
i n Miami ? Did you ever hear that ? 

Mr. Allenberg. No, sir ; I never heard it. I don't know that there 
is any dope racket in Miami or Miami Beach. 

Mr. Halley. There is dope sold in Miami ? 

Mr. Allenberg. If there is I don't know it. 

Mr. Halley. You don't Imow Massei has anything to do with it ? 

Mr. Allenberg. No, sir ; I don't. 

The ChAirman. Who all have we got in these games ? 

Mr. Allenberg. I am just surmising, telling you the fellows that 
sat around. 

The Chairman. Let's see. "We first have Massei, Carfano, who 
else? 

Mr. Allenberg. King. 

The Chairman. Wlio else? 

Mr. Allenberg. I don't know, Senator, who might play cards. 

The Chairman. Joe Adonis ? 

Mr. Allenberg. No, he was not around the hotel. 

The Chairman. Let's get some more names in those big games. 
You would know who was in them. Was Erickson ? 

Mr. Allenberg. No, sir ; he never played with those men. He was 
not friendly with those men. 

The Chairman. Who was his auditor ? 

Mr. Allenberg. They didn't gamble at cards. These men that I 
have identified 

The Chairman. Of the people you say were guests at your hotel, 
would most of them play in the games? 

Mr. Allenberg. I imagine most of them would gamble. 

The Chairman. Do you know that? 

Mr. Allenberg. I don't know. That was my supposition. 

The Chairman. That is all from me right now. 

Mr. Halley. May I ask one question : Do you know Bill Johnston ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. He just left Miami and is reported to have gone to 
Europe ; do you know that ? 

Mr. Allenberg. Yes, sir. 

Mr. Halley. He is reported to have been quite a fixer; did you 
ever know that ? 

Mr. Allenberg. No, sir. 

Mr. Halley. It is stated that he is the man who had arranged the 
games that were run without being shut down. Had you ever heard 
that? 

Mr. Allenberg. No, sir. 

Mr. Halley. Not even by reputation ? 

Mr. Allenberg. No, sir. 

Mr. Halley. Did you ever give a party or dinner at which A. C. 
Caraway and Bill Johnston and a lot of other people were enter- 



ORGANIZED CRIME; IN INTERSTATE COMMERCE 125 

tainecl by you ? Also by Straus, J. D. Thornton, possibly in connec- 
tion with that Democratic dinner ? 

Mr. Allenberg, Might have, but I don't remember. I don't recall. 

Mr. Halley. Will this memorandum refresh your recollections ? 

Mr. Allenberg. These are just people that I was to see. I was on 
a trip. This man was in Detroit and I was going to Detroit. These 
are names of people I know. 

E. E. Hoff is an automobile dealer. H. L. Straus was in Baltimore, 
and Caraway — I might want to drop them postal cards or might want 
to stop and see them or get in touch with them when I get away. 

Mr. Halley. Who did you call on when you got to New Orleans ? 

Mr. Allenberg. I have never been in New Orleans for more than 2 
-days in my life. 

The Chairman. Who did you call on there ? 

Mr. Allenberg. The Roosevelt Hotel. 

The Chairman. What did you go over there for ? 

Mr. Allenberg. I was on my way to California, driving through. 

The Chairman. You didn't go to New Orleans and come back here 
and then go on to New York on one occasion ? 

Mr. Allenberg. No, sir. 

The Chairman. Do you know the gambling interests in New 
Orleans ? 

Mr. Allenberg. I have heard about it. 

The Chairman. Do you know any of them ? 

Mr. Allenberg. Kastel and Costello were supposed to be there. 

The Chairman. Do you know Phil Kastel ? 

Mr. Allenberg. Yes, sir. 

The Chairman. Where did you know him ? 

Mr. Allenberg. He used to come to the Wofford Hotel. 

The Chairman. Did you see him when you were in New Orleans ? 

Mr. Allenberg. I went there the night I was there and there was 
once I saw him. I was there two or three, but I didn't see him. I 
didn't see him there. I went to the club. 

The Chairman. Does he see you when he comes here ? 

Mr. Allenberg. I haven't seen liim in years. 

The Chairman. Do you know Mickey Cohen ? 

Mr. Allenberg. No, sir. 

The Chairman. Is there anything else, Mr. Halley ? 

Mr, Halley. I have nothing further. 

The Chairman. That is all, Mr. Allenberg. 

Mr. Allenberg. I want you to know that I have never been in any 
•difficulties and I am not the man they come to in this area to do any 
fixing or for any gambling. I don't gamble myself. 

The Chairman. The record shows what it shows. 

Mr. Allenberg. These people stopped at my hotel. 

The Chairman. And they are some of the people you have described 
to the committee. 

I would say offhand that the people you have been associating with 
make a pretty bad appearance. 

Mr. Allenberg. It is bad, but I didn't know their reputations. 

The Chairman. You know their reputations now, don't you? 

Mr. Allenberg. Yes, sir. For instance, you told me about the 
Teepee Grill 



126 ORGANIZED CRIIMEI IN INTERSTATE COMMERCE 

The Chairman. We are very anxious to see whether there is any 
improvement in the situation down here. 

1 want to say frankly that I think a good deal of the distress here 
is of the kind that you have aided and abetted and you have been a 
pretty close cog in the wheels of a good deal of it. 

What is going to happen in the future is going to be a matter of a 
great deal of interest. 

That is all. Thank you. 

TESTIMONY OF WALTER CLARK, SHERIFF, BROWARD 
COUNTY, FLA. 

The Chairman. Do you solemnly swear that the testimony that you 
will give the committee will be the truth, the whole truth and nothing 
but the truth, so help you God ? 

Mr. Clark. I do. 

The Chairman. I have one or two preliminary questions I want 
to ask, Sheriff Clark. 

What is your first name ? 

Mr. Clark. Walter. 

The Chairman. And you live at Fort Lauderdale ? 

Mr. Clark. Yes, sir. 

The Chairman. Is that Broward County ? 

Mr. Clark. Yes, sir. 

The Chairman. How old are you. Sheriff? 

Mr. Clark. I am 46. 

The Chairman. When were you first elected sheriff ? 

Mr. Clark. In 1932. 

The Chairman. In 1932? 

Mr. Clark. I was elected to the State office in 1933. 

The Chairman. You have been sheriff how often since that time ? 

Mr. Clark. All the time. 

The Chairman. Ever since 1933 ? 

Mr. Clark. Yes, sir. 

The Chairman. What did you do before you were the sheriff? 

Mr, Clark. I was in the meat business ; in the grocery business. 

The Chairman. Sheriff, under the laws of Florida, in connection 
with illegitimate or illegal gaming and operations outside of the law, 
what is the law of Florida about your duties as to closing them up? 
Do you have to wait until you get a notice or complaint, or is it your 
responsibility to go out and do something about it on your own ? 

Mr. Clark. If we have a complaint or anything like that, we are 
supposed to look after it. 

The Chairman. In the absence of complaints, if you know or have 
reason to believe that certain transactions are taking place that are 
illegal, is it your duty to do it? 

Mr. Clark. Yes, sir. 

The Chairman. Sheriff, we have abundant testimony that over a 
period of quite a number of years numbers of places have been oper- 
ating openly in your county ? 

Mr. Clark. Yes, sir. 

The Chairman. And they are being operated by i>eople who are 
operating in interstate commerce by bookmaking and laying off bets; 



ORGANIZED CRIME IN INTERSTATE COMMERCE 127 

certain members of gangs who have come down and are operating in 
vour county. Have you had knowledge of those matters 2 

Mr. Clark. I haven't had any knowledge of any gambling. 

The Chairman. I mean of gambling operations. 

Mr. Clark. I have no knowledge of that. 

The Chairman. Is the Colonial Inn in your county ? 

Mr. Clark. Yes, sir. 

The Chairman. Is that operating now ? 

Mr. Clark. No, sir. 

The Chairman. Is Greenacres operating? 

Mr. Clark. No, sir. 

The Chairman. How long did it operate? 

Mr. Clark. They operated some several seasons. 

The Chairman. Does the record show about when Greenacres 
operated? 

Mr. Halley. Greenacres operated up to about 1947 ; didn't it ? Is it 
operating today ? 

Mr. Ci.ark. No. 

The Chairman. Did it close down when the season was over? 

Mr. Clark. Yes, sir. 

The Chairman. Sheriff, our question is : If Greenacres operated last 
season, the season before, and the season before and prior to that time, 
and if Colonial Inn operated, how come you let them operate? 

Mr. Clark. I was elected on the liberal ticket, and the people want it 
and they enjoy it. 

The Chairman. So, you just nod your head or wink your eyes at 
them ? 

Mr. Clark. I let them have what they want for the tourists down 
here. 

Mr. Halley. What do you mean by the "liberal ticket"? Did it 
say on the ballot that you were going to allow gambling to go on ? 

Mr. Clark. No. 

Mr. Halley. Who are the people that wanted the gambling ? What 
do you mean by that? 

Mr. Clark. The majority of the people expressed their opinions. 

Mr. Halley. How did they know that yours was a liberal ticket? 
Don't you think they may have thought that you were going to run an 
honest administration and stop things that were against the law? 
How did the majority of the people know that yours was the liberal 
ticket ? Did you go around in your campaigns and tell everybody you 
were for open gambling? 

Mr. Clark. No, sir. 

Mr. Halley. What do you mean by being elected on a liberal ticket. 
I think that kind of answer is an insult to the committee. 

Mr. Clark. The people know that I am more or less liberal-minded. 

Mr. Halley. What people know it? Do the people who have a job 
and work and pay taxes and who don't go to expensive gambling 
houses know it ? 

Mr. Clark. Yes, sir. 

Mr. Halley. How do they know it? Do you advertise that you 
don't enforce the law? 

Mr. Clark. I don't do that. 

Mr. Halley. Did you ever take before the people the issue whether 
jou should allow gambling to be open or closed? 



128 ORGANIZED CRIME' IN INTERSTATE COMMERCE 

Mr. Clark. The newspapers more or less carried it as an issue up 
there. 

Mr. Hallet. At the election or before the election ? 

Mr. Clark. Yes, sir. 

Mr. Halley. And you were elected anyhow ? 

Mr. Clark. Yes, sir. 

The Chairman. Do you make any report to the attorney general 
of Florida as to what the places are that are operating ? 

Mr. Clark. No, sir. 

Mr. Halley. Did he call on you to close down any of these places — 
I mean the attorney general of Florida ? 

Mr. Clark. He called on me this winter. 

Mr. Halley. Did you close them down ? 

Mr. Clark. Yes, sir. 

The Chairman. When? 

Mr. Clark. I don't know what date it was. Somewhere around the 
first of the year, I believe. 

The Chairman. Are Roscoe machines — these one-armed bandits — 
illegal under the Florida law? 

Mr. Clark. No, sir. 

The Chairman. They are not in public places. 

Mr. Clark. I don't laiow what you mean. 

The Chairman. Wliere you put a quarter in, pull a lever, and you 
might get something back and you might not. 

Mr. Clark. In money or the horse races ? 

The Chairman. No ; I am talking about the 

Mr. Clark. No; they are not. 

The Chairman. They are illegal. 

Mr. Clark. Yes ; they are illegal. 

The Chairman. Your county is pretty full of them ? 

Mr. Clark. No, sir. 

The Chairman. In the stores ? 

Mr. Clark. No, sir. 

The Chairman. Hotels? 

Mr. Clark. No, sir. 

The Chairman. Do you know Frank Erickson ? 

Mr. Clark. No, sir ; I don't 

The Chairman. Never met him? 

Mr. Clark. Never have ; no, sir. 

The Chairman, Do you know any of the fellows that operate the 
Colonial Inn or Greenacres? 

Mr. Clark. I know Jack Lansky. 

The Chairman. You knew what he was doing ? 

Mr. Clark. I knew he was running a place down there. 

The Chairman. How long have you known him ? 

Mr. Clark. Since he has been running it down here. 

The Chairman. Sheriff, do these people pay you off? 

Mr. Clark. No, sir. 

The Chairman. Do they contribute to your campaign ? 

Mr. Clark. They contribute to tlie campaign. 

The Chairman. Did Jack Lansky? 

Mr. Clark, The boys in the south end handle the campaign. 

The Chairman. What do you mean "the boys in the south end" ? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 129 

Mr. Clark. I have friends down there, and they go to these fellows 
and they contribute to the campaign. 

The Chairman. How much do they contribute ? 

Mr. Clark. I don't know. I never asked and never looked to see. 

The Chairman. Who is the head of your organization in the south 
end? 

Mr. Clark. Mr. Lewis handles that. 

The Chairman. What is his first name ? 

Mr. Clark. Charlie. 

The Chairman. Is he the fellow that got the money ? 

Mr. Clark. I suppose it was ; yes. 

The Chairman. Do you have any idea how much he got? 

Mr. Clark. No ; I don't know. 

The Chairman. $500, $10,000? 

Mr. Clark. I don't know. 

The Chairman. Don't you get around when you are preparing your 
campaign and see how much you are going to need and sort of figure 
where you are going to get it ? 

Mr. Clark. It all depends on what it is going to cost. 

The Chairman. What did your campaign cost you? What did 
you spend on your last campaign ? 

Mr. Clark. I don't know what we did spend. 

The Chairman. You have an idea. Sheriff, of what you spent. 

Mr. Clark. We had this campaign committee, and I never asked 
them what they spent. I don't know what they did spend. 

The Chairman. You have amassed a good deal of property; 
haven't you ? 

Mr. Clark. Not so very much ; no, sir. 

The Chairman. Don't you own quite a number of business prop- 
erties in Fort Lauderdale ? 

Mr. Clark. No, sir. 

The Chairman. How many ? 

Mr. Clark. I got my home where I live. I got a little farm. 

The Chairman. How little a farm ? 

Mr. Clark. About 100 acres. 

The Chairman. Don't you own a business property in Fort Lauder- 
dale, or an interest in one ? 

Mr. Clark. Yes, sir. 

The Chairman. What is that? 

Mr. Clark. It is a garage and filling station. 

The Chairman, On the main street? 

Mr. Clark. On the Federal Highway ; yes, sir. 

The Chairman. Who is your associate in that ? 

Mr. Clark. My brother. 

The Chairman. What is his first name? 

Mr. Clark. Robert. 

The Chairman. How much did you pay for that business ? 

Mr. Clark. I would have to check with him. 

The Chairman. About how much? $25,000? $50,000? 

Mr. Clark. I guess around maybe $30,000. I couldn't be positive. 

The Chairman. Do you own any other business ? 

Mr. Clark. No, sir. 

The Chairman. Or any interest in any other business? 

Mr. Clark. I cot a little farm land. 



130 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. How much did you pay for that? 

Mr. Clark. $16 an acre. 

The Chairman. How many acres ? 

Mr. Clark. I got about 200 acres. 

The Chairman. About $32,000 ? 

Mr. Clark. No. 

The Chairman. $3,200; is that what you paid for it? 

Mr. Clark. Something like that. 

Tlie Chairman. Is it an orange grove ? 

Mr. Clark. No; just faiTti land. 

The Chairman. Do you have any other business interest? 

Mr. Clark. Farm land — nothing but farm land and stuff like 
that. 

The Chairman. What is this "stuff like that" ? You would know 
if you had some other business interests. You said you had your 
home, half an interest in a filling station, and you have 200 acres of 
farm land for which you paid $16 an acre, and what else? 

Mr. Clark. I got some stock in Rib-N-Rite Co. 

The Chairman. What type of company is that? 

Mr. Clark. They started making attachments for typewriters. 

The Chairman. Is it an operating concern now ? 

Mr. Clark. No, sir. 

The Chairman. Has it gone out of business? 

Mr. Clark. It is in the hands of the court now. 

The Chairman. In the hands of a receiver ? 

Mr. Clark. Yes, sir. 

The Chairman. Do you own any other real estate ? 

Mr. CL.VRK. I own a lot. I would have to correct the record ; maybe 
one or two little lots. 

The Chairman. Are they valuable lots ? 

Mr. Clark. No, sir. 

The Chairman. Not valuable ? 

Mr. Clark. No, sir. 

The Chairman. How about any buildings ? Do you own any build- 
ings ? 

Mr. Clark. No, sir. 

The Chairman. Wliat is the salary of the sheriff of Broward 
County? 

Mr. Clark. $7,500 a year. 

The Chairman. Do you make anything extra on fees? Or is it a 
straight-salary basis ? 

Mr. Clark. Fee basis. 

The Chairman. In addition to that, do you get a certain amount for 
fees ? 

Mr. Clark. I get all over a certain amount in fees. 

The Chairman. Plus the $7,500? 

Mr. Clark. Yes, sir. 

The Chairman. What does the total salary usually run then ? The 
salary, the fees, and the amounts you make out of the office? 

Mr. Clark. I would have to check my records. 

The Chairman. Over an average year you have some idea about 
what it was. 

Mr. Clark. I think my income was anywhere from $15,000 to 
$35,000. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 131 

The Chairman. That is from the office of sheriff, or is that all of 
•your income? 

Mr. Clark. That is all of it. 

The Chairman. How about the office of sheriff? You get $7,500 
salary and then fees for different things; I suppose turnkey fees and 
things of that sort ? 

Mr. Clark. Yes, sir. 

The Chairman. What does that amount to? 

Mr. Clark. It varies. Some years I will make more than I will in 
others. 

The Chairman. Let's say last year. 

Mr. Clark. Last year I didn't make very much. 

The Chairman. How much ? 

Mr. Clark. I don't know. I would have to check and see. 

The Chairman. How many gambling places operated in Broward 
County last year during the season ? 

Mr. Clark. Three or four. 

The Chairman. How about bookmaking operations? Did you do 
anything to try to check them ? 

Mr. Clark. We closed them this winter. 

The Chairman. After some State law was passed or after the Gov- 
ernor issued an order about it? 

Mr. Clark. The attorney general. 

The Chairman. How many did you have operating up to that 
time ? 

Mr. Clark. I don't know. 

The Chairman. What would be your best guess ? 

Mr, Clark. I guess four or five of them places. 

The Chairman. Along on the main street where anybody could 
go in ? 

Mr. Clark. In the city limits I usually let the county and city 
police handle it. 

The Chairman. Isn't it your responsibility as sheriff of the county ? 

Mr. Clark. Yes; the same as it is their responsibility in the city. 
However liberal the commissioners want it, that is what we are. 

The Chairman. By "liberal," you mean how open they want it ? 

Mr. Clark. Yes, sir. 

The Chairman. That is what you let them go on ? 

Mr. Clark. Yes, sir. 

The Chairman. Do you feel that the people over there elected you 
on an open-town platform ? 

Mr. Clark. Yes, sir. 

The Chairman. You have been doing that since 1933 ? 

Mr. Clark. Yes, sir. 

The Chairman. Suppose one of these fellows wants to set up a 
place like Greenacres or Colonial Inn or an operation of that kind, do 
they come and get in touch with you or some of your representatives 
to make arrangements about it ? 

Mr. Clark. They usually go to the official — they don't make ar- 
rangements. 

The Chairman. You say they get some officials ? 

Mr. Clark. I mean, the city wants it liberal. 

The Chairman. You mean he gets in touch with some of the city 
officials about opening up? 



132 lORGANIZED C'RIIMB IN mTEKSTATE COMMERCE 

Mr. Clark. I don't know whether they get in touch with the city 
officials. 

The Chairman. Do they get in touch with you ? 

Mr. Clark. No, sir. 

The Chairman. Did Lansky get in touch with you when he opened 
Colonial Inn? 

Mr. Clark. No, sir. 

The Chairman. Or any of his representatives ? 

Mr. Clark. I don't know. 

The Chairman. Do you know Mr. Allenberg down here ? 

Mr. Clark. Yes, sir. 

The Chairman. At the WofFord Hotel? 

Mr. Clark. Yes, sir. 

The Chairman. Did he come up to see you about opening up any 
of these places ? 

Mr. Clark. No, sir. 

The Chairman. How well do you know Mr. Allenberg? 

Mr. Clark. I have known him occasionally — seen him off and on. 
We had a convention in his hotel a few years ago. 

The Chairman. Any other questions, Mr. Halley ? 

Mr. Halley. I want to know a little bit more about the liberal 
ticket. You say the newspapers accused you of allowing the city to 
be run wide open, or the county? 

Mr. Clark. Yes, sir. 

Mr. Halley. That was the opposition crowd ? 

Mr. Clark. Yes, sir. 

Mr. Halley. Did you issue a statement saying, "Of course, I am 
going " 

Mr. Clark. No. 

Mr. Halley. Did you deny it? 

Mr. Clark. No, sir. 

Mr. Halley. If we checked the records, would we find that you 
made a speech or issued a statement denying charges that ^-ou failed 
to enforce the law ? 

Mr. Clark. I don't think you would. 

Mr. Halley. You never denied those charges ? 

Mr. Clark. Not that I remember. 

Mr. Halley. Never admitted it or denied it. You just let it ride? 

Mr. Clark. Not that I remember. 

Mr. Halley. What did you say in your campaign? Did you make 
some speeches? 

Mr. Clark. I made one speech. 

Mr. Halley. Did you say anything about gambling in your speech ? 

Mr. Clark. No, sir. 

The Chairman. What did you say, Sheriff ? 

Mr. Clark. Just told them that I was — I thought I had done a 
good job as sheriff of the county. 

The Chairman. Told them that you were healthy ? 

Mr. Clark. Told them a few of the things I had done for them. 

The Chairman. But you didn't say anything one way or the other 
about gambling? 

Mr. Clark. No, sir. 

The Chairman. Did your opponent? 

Mr. Clark. He did. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 133 

The Chairman. How much did you win by ? 

Mr. Clark. I think I beat two men by somewhere around 1,500 
votes. 

The Chairman. Out of how many votes? 

Mr. Clark. I guess it was — I can't say positive — maybe 18,000 or 
20,000 votes, I guess. 

Mr. Halley. Did you provide deputies to protect these gambling 
houses ? 

Mr. Clark. No, sir. 

Mr. Halley. There are no deputy sheriffs ? 

Mr. Clark. No, sir. 

Mr. Halley. Are there any stationed in any of the gambling houses ? 

Mr. Clark. No, sir. 

Mr. Halley. Do they all contribute to your campaign ? 

Mr. Clark. I don't know. 

Mr. Halley. Did the people who run Greenacres contribute ? 

Mr. Clark. I couldn't say. I didn't go to them and ask them myself. 

Mr. Halley. What do you think ? 

Mr. Clark. I couldn't tell you. 

Mr. Halley. Have you ever been to Greenacres, or have you walked 
into the place ? 

Mr. Clark. No. 

Mr. Halley. The Boheme Club? 

Mr. Clark. I was down there at some charity affair sometime. 

Mr. Halley. Were you ever in the Colonial Inn ? That is, before 
it gave up its gambling operations ? 

Mr. Clark. We were down at a couple of charity affairs sometimes. 

Mr. Halley. Prior to the charity affairs, is it your testimony that 
you never entered the premises of Greenacres or besides those affairs ? 

Mr. Clark. I don't believe I was ever in there unless I went down 
after somebody ; I don't remember. 

Mr. Halley. Did you consider it your duty as sheriff of the county 
to at least find out what was going on in a place that was notoriously 
engaging in gambling, even if you were liberal ? 

Mr. Clark. I never had any complaints on it. 

Mr. Halley. You knew gambling was going on ? 

Mr. Clark. Yes, sir. 

Mr. Halley. You didn't even care to find out what it was like ? 

Mr. Clark. No. 

Mr. Halley. And the same applies to Club Boheme? And to the 
Colonial Inn? 

Mr. Clark. Never went in them. 

Mr. Halley. Was there gambling at the charity affairs ? 

Mr. Clark. No, sir. 

Mr. Halley. Just eating and entertainment? 

Mr. Clark. Yes, sir. 

Mr. Halley. During those charity affairs, was gambling going on 
in the other rooms? 

Mr. Clark. No, sir. 

Mr. Halley. You would say that you have never personally wit- 
nessed any gambling in any of those places such as Club Boheme, 
Colonial Inn, or Greenacres ? 

Mr. Clark. Yes, sir. 



134 ORGANIZED ORIIME' IN INTERSTATE COMMERCE 

Mr. Halley. That is your specific testimony ? 

Mr. Clark. Yes, sir. 

Mr. Halley. I have no other questions. 

The Chairman. Thank you, Sheriff. Do you want to make an addi- 
tional statement? 

Mr. Clark. I closed up Greenacres one time. 

The Chairman. When was that? 

Mr, Clark. Two or three years ago. 

The Chairman. What did you do that for ? 

Mr. Clark. On some complaints. 

The Chairman. They got a little rowdy, did they ? 

Mr. Clark. I had some complaints from somebody. 

The Chairman. Didn't they open right up after that ? 

Mr. Clark. I don't remember. 

The Chairman. You just closed them up for a short time? 

Mr. Clark. I don't remember whether they were closed for the rest 
of the season or not. 

The Chairman. All right, Sheriff. Thank you. 

Mr. Halley. The stenographer is specifically instructed to keep the 
notes and any extra copies of the testimony in a secure place under 
lock and key, and to advise the committee of the total number of 
copies which are made and the location of any extra copies and of 
the notes. 

The stenographer is further instructed not to divulge any copies 
of the testimony except with the permission of the committee in 
writing. 

The committee will require one copy of the record, for which the 
committee is to be billed at the price agreed. 

(Whereupon, at 5 : 50 p. m., the hearing was adjourned subject to 
call of the chairman.) 



INVESTIGATION OF OEriANIZEI) CRIME IN INTERSTATE 

COMMERCE 



THURSDAY, JULY 13, 1950 

United States Senate, 
Special Committee To Investigate 
Organized Crime in Interstate Commerce, 

Miami^ Fla. 

The committee met in the courtroom of the United States district 
court, Miami, Fla., on July 13, 1950, Senator Estes Kefauver (chair- 
man), presiding. 

Present : Senators Kefauver and Hunt. 

Also present : Rudolph Halley, chief counsel ; Alfred Klein, associ- 
ate counsel ; Downey Rice, associate counsel ; William Garrett, associ- 
ate counsel ; Harold G. Robinson, chief investigator ; Ralph W. Mills, 
investigator; Daniel P. Sullivan, operating director; and Col. J. R. 
Younger, president of the Crime Connnission of Greater Miami. 

The Chairman. The committee will come to order. 

Ladies and gentlemen, this is a duly constituted hearing of the 
United States Senate Special Committee To Investigate Organized 
Crime in Interstate Commerce, pursuant to Senate Resolution 202, 
Eighty-first Congress, second session, which vests in this committee 
the following authority, and for the benefit of the interested people 
and the public it might be well to read the resolution under which 
this committee operates. It is very brief. It requires the committee — 

to make a full and complete study and investigation of whether organized crime 
utilizes the facilities of interstate commerce or otherwise operates in inter- 
state commerce in furtherance of any transactions which are in violation of the 
law of the United States or of the State in which the transactions occur, and, if 
so, the manner and extent to which, and the identity of the persons, firms, or 
corporations by which such utilization is being made, what facilities are being 
used, and whether or not organized crime utilizes such interstate facilities or 
otherwise operates in interstate comniierce for the development of corrupting 
influences in violation of the law of the United States or of the laws of any 
S'tate: Provided, however, That nothing contained herein shall (1) authorize 
the recommendation of any change in the laws of the several States relative to 
gambling, (2) effect any change in the laws of any State relative to gambling, 
or (3) effect any possible interference with the rights of the several Sates to 
prohibit, legalize, or in any way regulate gambling within their borders. For 
the purposes of this resolution, the term "State" includes the District of Co- 
lumbia or any Territory or possession of the United States. 

With reference to the jurisdiction of the committee, it will be seen 
that if there is any violation of the laws of the United Statas or of 
the several States involving interstate commerce, there is jurisdiction 
in this committee. 

135 
68958— 50— pt. 1 10 



136 (ORGANIZED OROME' IN INTERSTATE COlVIMERaE 

In the hearings of the committee, the question of jurisdiction will 
not be considered from purely the matter of the particular hearing 
at the place wliere it is being had — that is, in hearings in other parts — 
in Washington and elsewhere — the committee has developed and un- 
questionably will develop to a greater extent matters which relate to 
interstate transactions in which Florida operations and people are 
involved. 

So, in case the matter should come up as to the question of contempt 
proceedings or anything of that sort, the over-all picture developed by 
the committee will be considered relative to its jurisdiction. 

It must be apparent, however, that while the committee has very 
wide jurisdiction to make its investigation, this is not a prosecuting 
committee. We are not a court for the purpose of inflicting penal 
punishment upon anyone. 

The purpose of the committee is, of course, as with any legislative 
committee, to find out what the facts are with reference to whether the 
laws of the Federal Government are adequate, whether they need 
changing, or whether any amendments or additional laws should be 
passed. 

Of course, it is the hope of this committee also to make it clear that 
we cannot possibly investigate every criminal in the United States or 
every criminal transaction. If we did so, we could, of course, spend 
a great deal of time and go to many places in the country. 

We wish to call your attention to the fact that this committee is 
composed of five very busy Membei^ of the United States Senate, and 
the staff of the committee, or most of them, are doing what they are 
as a matter of public service rather than for compensation. 

So we are anxious to do our job as thoroughly as we can and make 
our report to the Senate. We will try to get a thorough, accurate, and 
over-all picture of the big aspects of the problem that we are investi- 
gating, and the rest is the responsibility and job of the local people, 
the local law-enforcement people and officers, and people who want 
and are interested in good government. 

As to the work of this committee, any laws that the Federal Govern- 
ment may pass cannot, of course, give you law enforcement or elimi- 
nate criminal activities unless the local people want to have it done 
and are willing to see that they have law-enforcement officers and 
governmental officials w^ho will insist that it be done. 

We are not setting ourselves up in competition with any law-enforce- 
ment officers, the Department of Justice, the local-enforcement officers, 
or the State of Florida. 

Our hope is that we can work in cooperation with and be of assistance 
to these enforcement agencies, and that we may be able to present to 
the public the tremendous importance of the over-all crime picture 
as it affects the daily lives of the people of our country. 

In that connection it may be appropriate to state that the best evi- 
dence we have is that the take from crime, gambling, and other cor- 
rupting influences from the American people per year — and it has 
to be a rather wild guess — is somewhere between 15 and 22 billion 
dollars. 

That is, of course, a great deal more than we are spending on our 
armed services and our Armed Forces today. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 137 

The second part of the jurisdiction of this committee is to see what, 
if any, corrupting influences, are at work upon law-enforcement officers 
and people in government generally. 

In the long run, it is, of course, necessary to first establish — and 
that will be done either here or in hearings in other parts of the 
country — that there have been violations; that there is a stream of 
crime in interstate commerce, and then from that point the committee 
has jurisdiction to see what, if any, corrupting influences may have 
resulted or may have come along as protection in order that such 
crime might take place. 

It is not, however, our prerogative, unless that is established or 
unless we know that it is going to be established, to get into the matter 
of local politics. State, county, or city. 

We are not charged with the job of investigating the purity or lack 
of purity in local political matters unless it comes within the first 
major premise. 

The present hearing is that of a subcommittee which is duly con- 
stituted as consisting of the chairman of the committee and Senator 
Lester C. Hunt, of Wyoming. Such subcommittee is designated pur- 
suant to a resolution duly adopted by a quorum of the full committee 
at a committee meeting held in Washington, D. C, on July 11, 1950. 
Said resolution, which is hereby made a part of the minutes of this 
meeting, reads as follows: 

Be it and it is hereby resolved, That the chairman be and he hereby is authorized 
to designate subcommittees for the purpose of holding hearings at Miami, Fla., 
on July 13 and 14, 1950 ; at St. Louis, Mo., on July 18, 1950 ; and at Kansas City, 
Mo., on July 19 and 20, 1950, or at such other time as the chairman may specify ; 
and, that, one member of the subcommittee so designated shall constitute a 
quorum for the purpose of conducting such hearings, administering the oath, 
and taking testimony of witnesses appearing before it, and taking such other 
action as may be appropriate. 

At the outset I desire to state that this committee, through a duly 
constituted subcommittee, held executive hearings in Miami, Fla., on 
May 26 and May 27, 1950, at which 13 witnesses were heard and cer- 
tain documents were subpenaed. 

Thereafter, through its investigative staff, the committee continued 
to make investigation in Miami, Fla., and in Dade County and Bro- 
ward County, Fla. The committee is now ready to hear certain wit- 
nesses with reference to certain of the facts developed in this in- 
vestigation. 

However, it is important that it be made clear at this point that 
these hearings are a portion of a continuing investigation of organized 
crime in Dade and Broward Counties and elsewhere. Certain wit- 
nesses upon whom the committee has attempted to serve subpenas 
cannot be found at their usual residences and places of business. 
These include : 

Sam Cohen, Harold Salvey, Charles Friedman, Edward Rosen- 
baum, Jules Levitt, Harry Russell, George L. Bowers, William H. 
Johnston, John Patton, Sr., and Jack Friedlander. 

These witnesses may be under the mistaken impression that by re- 
maining away from their usual places of abode they can impede or 
avoid the investigation of this committee. The committee hereby 
serves notice upon them that any such impression is entirely erroneous. 
The committee hearings will continue here at this time and in Wash- 



138 ORGANIZED OROME' IN INTERSTATE COMMERCE 

ington and in other places hereafter. The committee will hear at 
this time as many as possible of the considerable number of witnesses 
who will appear before it. The committee will seek out any witnesses 
upon whom it has not been able to effect service of this lawful process 
and these witnesses will be found and brought before this committee 
to testify. 

Let me say by way of explanation that Mr. Sam Cohen had an 
operation and is in the hospital and he has expressed a willingness to 
testify when he is able to do so. 

The chairman and the committee liave checked with the people 
who have undertaken to serve subpenas upon the other witnesses. A 
diligent effort has been made to locate them. It is inconceivable that 
they do not know they are desired for appearance before this com- 
mittee. The only impression or conclusion that must be drawn from 
their refusal to appear or to get in touch with the committee or with 
our staff is that they feel that they, by their absence, might be able to 
impede the investigation of this committee, or that they feel that it 
would be very bad for them for what they have done or the business 
they are engaged in for them to appear. 

But in any event the subpenas will remain outstanding for them, 
and if by any chance any of them have not heard they are wanted 
here, we hope that they will get in touch with us. 

The press and radio have been very cooperative in carrying the 
message all over the Nation that these men are wanted. 

They will not be able to permanently embarrass the committee and 
they are doing themselves no good by failing to cooperate. This, of 
course, makes it more difficult for the committee because these are 
important witnesses and in certain phases of our investigation we 
will necessarily, for the time being, have to resort to secondary evi- 
dence, whereas we would, of course, like to present more direct evi- 
dence. 

Tlie committee wishes at the outset to thank Judge Holland, the dis- 
trict judge, and Judge Whitehurst for their cooperation in making 
this courtroom available. They have arranged to hold trials and 
hearings at great inconvenience in other quarters in order to cooperate 
with the committee. We are very, very grateful to them. 

We are grateful to Deputy Marshal Gates and his assistants for 
their cooperation and their help both at the executive hearings and at 
this hearing. 

Many of the officials of the Government of Florida, Dade County, 
Miami, in this section, have been of tremendous assistance and have 
tendered their cooperation and we want to express our thanks to 
them; also to Col. Jack Younger, president of the Greater Miami 
Crime Commission, and to Dan Sullivan, and to the valiant citizens 
who have worked with that commission and backed it up. We want 
to thank them and pay a very high compliment to them for the work 
they have done. It has been invaluable to us. 

Now, the rules of the game in this hearing will be that if any wit- 
ness is called, necessarily some names will be used. Some people will 
be talked about aud some charges will be made against people who are 
not present. 

By screening the testimony at private hearings, we have tried to 
eliminate as mucli of that as possible. The committee does not wish 
to do any innocent citizens any harm. If inadvertently any harm is 



ORGANIZED CRIME IN INTERSTATE COMMERCE 139 

done, we want to rectify it as quickly as possible. So that while we 
have a very full schedule, if any person whose name is used here or 
anywliere else in the country feels that he has been maligned or un- 
justly accused or represented, or if they want to make any explana- 
tion, or if they want to charge that any statement that has been made 
is untrue, the committee will hear them on the same clay the statement 
is made, if they make application to the committee or to our staff, and 
give them an opportunity to make any explanation or to refute any 
charges that have been made. They can feel at perfect liberty to get 
in touch with any of us about it. 

If any one of the witnesses wishes to have counsel present, counsel 
will be welcomed. 

Ordinarily the rules of the committee provide that questions that 
counsel wish to ask shall be given to the committee. We will permit, 
within reasonable limitations, one's own counsel to ask questions, 
but of course we will have to limit the extent if it goes on too long. 

I don't know whether we are going to be able to permit smoking over 
a long period of time or not. We will start off with permission to 
smoke. We may have to discontinue it. 

The committee also wishes to thank the press for its cooperation 
and the press photographers. We want to have order and decorum 
in the committee and we don't want to have anyone embarrassed. We 
want to get the facts from the witnesses, so when a witness first ap- 
pears on the witness stand, the ]5hotographers with their flashlight 
bulbs can take his picture, or during the time he is sworn, or just be- 
fore he testifies or after he testifies. During the testimony I will 
have to ask that flashlight bulbs not be used. I am sorry if this in- 
conveniences anyone, but some people find it very difficult to think and 
testify with bulbs flashing about. 

Senator Hunt? 

Senator Hunt. Mr. Chairman, I believe I have nothing in addi- 
tion to what you liave said. I think you have touched on all matters 
that need to be touched on before the opening of the hearing and I 
have nothing further to add. 

The Chairman. Thank you, Senator Hunt. Does anyone have any 
brief questions he wants to ask about procedure ? 

(No response.) 

The Chairman. If not, the resolution appointing this committee 
as a subcommittee to receive testimony will be made a part of the 
record. 

(The resolution is as follows :) 

Resolution 

Be it and it is hereliy resolved, That the chairman be and he hereby is author- 
ized to designate subcommittees for the purpose of holding hearings at Miami, 
Fla., on July 13 and 14, 1950, at St. Louis, Mo., on July 18, 1950, and at Kansas 
City, Mo., on July 19 and 20, 1950, or at such other time as the chairman may 
specify ; and, that one member of the subcommittee so designated shall con- 
stitute a quorum for the purpose of conducting such hearings, administering 
the oath, and taking testimony of witnesses appearing before it, and taking such 
other action as may be appropriate. 

The Chairman. Mr. Colman and Mr. Laiken and the others, will 
you please be sworn ? 

(Messrs. Henry E. Colman, Leonard Laiken, Irving Bakst, Gordon 
B. Girling, and Billy L. Pickett were sworn as official reporters for 
the subcommittee.) 



140 ORGANIZED CRIME' IN" INTEESTATE COMMERCE 

The Chairman. Wlio is our first witness ? 
Mr. Hallet. Mr. Walter Morris. 

The Chairman. Our first witness is Mr. Walter Morris. Mr. Mor- 
ris, will you come forward, please ? 

TESTIMONY OF WALTER MORRIS, ASSISTANT DIRECTOR OF 
COMMUNICATIONS, NATIONAL AIRLINES 

The Chairman. Mr. Morris, do you solemnly swear that the testi- 
mony you will give this committee will be the whole truth and nothing 
but the truth, so help you God ? 

Mr. Morris. I do. 

Mr, Halley. Mr. Morris, will you state your address and your 
occupation ? 

Mr. Morris. My address is 1947 Northwest Forty-eighth Street, Mi- 
ami, Fla. I am employed by National Airlines as assistant director of 
communications. 

Mr. Halley. Mr. Morris, did you serve on the grand jury for Dade 
County, Fla. ? 

Mr. Morris. Yes, sir ; I served as foreman of the spring term grand 
jury for the period May 10, 1949, to November 7, 1949. 

Mr. Halley. And did that grand jury issue a presentment ? 

Mr. Morris. It issued a final report to the court. 

Mr. Halley. A report was presented to the court ? 

Mr. Morris. Yes. 

Mr. Halley. And can you, as foreman of that grand jury, identify 
that report? 

Mr. Morris. Yes. 

Mr. Halley. Do you have a copy with you ? 

Mr. Morris. I have. 

Mr. Halley. Mr. Chairman, I offer in evidence as exhibit No. 106 the 
grand jury report. 

The Chairman. The grand jury report will be received and made 
a part of the record as exhibit No. 106 to the testimony of Mr. Morris. 
(See appendix, pp. 735-740.) 

Mr. Halley. Will you summarize the findings of the grand jury 
of which you were foreman ? 

Mr. Morris. Well, we found in the testimony of witnesses whom we 
considered to be reliable that there appears to be quite a congregation 
of criminal elements in the Miami area, or in the south Florida area. 

Mr. Halley. Did you find any crime condoned by local law-enforce- 
ment agencies ? 

Mr. Morris. Well, we found that crime existed, and that it would 
be difficult to believe that it could exist without the condonation of 
local law-enforcement agencies. 

Mr. Halley. Did you have occasion to censure any law enforcement 
agency in Dade County ? 

Mr. Morris. I believe that we made some mention of the sheriff's 
office and their efforts to locate members of the jury, or rather to serve 
subpenas for jury service, and we also had something to say about the 
city police department. 

Mr. Halley. What did you have to say about the city police depart- 
ment? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 141 

Mr. Morris. It seemed that quite a bit of bickering and feuds existed 
in tlie police department. 

Mr. Hallet. Reading from page 7 of your report, did the grand 

jury conclude as follows : 

If the people of Dade C5ounty desire that organized crime be destroyed, it can 
be destroyed. The facilities required are available in the choice of men they 
elect as sheriff and city commissioners. 

Mr. Morris. Yes ; we made such a statement. 

Mr. Halley. Did you hear evidence to justify such a statement? 

Mr. Morris. Yes. 

Mr. Halley. Did you hear witnesses? 

Mr. Morris. Yes. 

Mr. Halley. Did you conclude that bookie operations were operat- 
ing in the city of Miami and in the city of Miami Beach ? 

Mr. Morris. Yes. 

Mr. Halley. And you heard witnesses who testified to this effect? 

Mr. Morris. We did. 

Mr. Halley. Did you hear testimony to the effect that Dade County 
was wide open to anybody desiring to visit well-appointed air-con- 
ditioned places set up for card games, dice games, roulette, and book- 
making? 

Mr. Morris. We did. 

Mr. Halley. Did you find that in Miami, Bolita and the numbers 
racket were flourishing ? 

Mr. Morris. Yes ; they were. 

Mr. Halley. Did you conclude that there appeared to be little 
effort made to curb these gambling operations, although they were 
being carried on under the eyes of the police ? 

Mr. Morris. Yes. 

Mr. Halley. Now, Mr. Morris, did you find any evidence that 
this crime was on an organized basis by groups of organized criminals 
operating on a widespread basis ? 

Mr. Morris. Well, particularly in bookmaking, it would be very 
difficult to believe that the organization or the set-up that they had 
could exist unless it was conducted on an organized basis. 

Mr. Halley. And did you have testimony to that effect ? 

Mr. Morris. Yes. 

Mr. Halley. Did you have testimony to the effect that nationally 
known criminals and racketeers were finding a haven in Dade County ? 

Mr. Morris. We did. 

Mr. Halley. And that these same criminals and racketeers were 
in charge of the crimes as to which you had testimony ? 

Mr. Morris. Yes. 

Mr. Halley. Mr. Morris, is there anything further you would like 
to say about your findings and about the evidence before you to this 
committee ? 

Mr. Morris. Well, it would appear to us that it would be very diffi- 
cult for local law enforcement agencies to cope with some of these 
things when they cross State lines, and there was evidence presented 
to us which indicated that in many cases the criminal activity in one 
location is being conducted more or less from a remote point, at a 
headquarters, so to speak, which in many cases exist outside the com- 
munity, outside the county, and even in a different State. 



142 ORGANIZED ORlIME: IN INTE'R'STATE eiOMMERCE 

Mr. Halley. Do you have any recommendations you would want 
to make to this committee ? 

Mr. Morris. Being a layman I wouldn't feel that I was competent 
to make recommendations for the enactment of legislation necessary 
to control this, but I do feel that there is a definite need for it. 

Mr. Halley. As a grand jury, your function was to find facts? 

Mr. Morris. Yes. 

Mr. Halley. And you heard evidence and on this evidence you did 
find facts ? 

Mr. Morris. Yes. 

Mr. Halley. I have no further questions, Mr. Chairman. 

The Chairman. Mr. Morris, what is your occupation? What do 
you do ? 

Mr. Morris. I am an airlines communications man. 

The Chairman. This report was made in the spring of 1949 or in 
the summer of 1949 ? 

Mr. Morris. The jury was impaneled in the spring of 1949 and the 
report was submitted on November 7, 1949. 

The Chairman. And there had been a previous grand jui-y which 
made a report in 1947 or 1948? 

Mr. Morris. Yes. 

The Chairman. It is stated here that your report is a repetition of 
what is contained on the subject in the admirable report of the grand 
jury for the winter term of 1947. 

Mr. Morris. Yes. 

The Chairman. So the conditions that you found have apparently 
been going on for some time ? 

Mr. Morris. Apparently so. 

The Chairman. Mr. Morris, what indictments, did you return 
against any of these gamblers ? 

Mr. Morris. We returned no indictments against them. 

The Chairman. Isn't the province of a grand jury to ferret out vio- 
lators of the law and return indictments against them ? 

Mr. Morris. It is. 

The Chairman. Why couldn't you do that? 

Mr. Morris. Well, the grand jury was handicapped by many things. 
Our grand jury was somewhat confused by the enactment of certain 
State legislation intended to strengthen the system which actually 
placed some doubt as to our legal status. 

The Chairman. Do you mean by "State legislation" whether you 
had jurisdiction in the county or whether the State had jurisdiction? 

Mr. Morris. No. The legality of the jury itself was in question 
for a while. It is very difficult for a local grand jury to get evidence 
against people who are operating through several States. After all, 
we are liere in one place, and it is very difficult to follow leads which 
disappear across State boundaries. 

The Chairman. How about bookmaking and gambling places and 
places of that sort ? Are they so difficult to find ? 

Mr. Morris. No ; they are not difficult to find at all. 

The Chairman. Why couldn't you bring them in and get indict- 
anents against them? 

Mr. Morris. Frankly, we could see little point in indicting a local 
small-time bookmaker who is merely one small part of a large organi- 
zation. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 143 

The Chairman. And you couldn't reach the bigger fellow? 

Mr. Morris. We couldn't reach the bigger fellows at all. We tried. 
Six months we tried. 

The Chairman. What efforts did you make? 

Mr. Morris. We used every tool at our command. Our final deci- 
sion was that the grand jury was probably incapable or incompetent 
to deal with crime on such a widespread basis, such a widespread or- 
ganization. Our final recommendation was that perhaps the P^ederal 
Government might look into it. 

The Chairman. Well, sir, as you very well know, this business of 
passing on the responsibility to the Federal Government is not a very 
healthy picture. We want to assume the responsibility where it is 
necessary that we do it, but getting the Federal Government into the 
local law enforcement is not a healthy thing, in the opinion of the com- 
mittee, if it can be handled by the local people. 

After all, unless it has the backing of and support of the local agen- 
cies, nobody can get very far. 

Take Frank Costello and Frank Erickson and many of thosepeople 
who have been over here and who operate in this section, don't they 
come here where they can be reached by subpena of the grand jury? 

Mr. Morris. They appear to be here from time to time; yes. 

The Chairman. Where they would be subject to arrest in this juris- 
diction ? 

Mr. Morris. Yes. 

The Chairman. How about the cooperation of the law-enforcement 
officers with the grand jury? Did they bring information to the 
grand jury about the so-called big operators that you have talked 
about ? 

Mr. Morris. I can't say that we received information from them as 
to the big-time operators ; no. 

The Chairman. Senator Hunt, do you have any questions ? 

Senator Hunt. I might ask: What particular office or what par- 
ticular local official has the greatest responsibility in enforcing the 
gambling and the vice laws ? 

Mr. Morris. I M-ould say the sheriff does. 

Senator Hunt. The sheriff's office? 

Mr. Morris, That is my personal opinion. 

Senator Hunt. Did the sheriff appear before your grand jury? 

Mr. Morris. No ; he did not. 

Senator Hunt. How come he didn't testify ? 
■ Mr. Morris. During a great portion of our time, I believe he was 
out of the State fishing. 

Senator Hunt. Out of this State fishing? 

Mr. Morris. I think he was; yes. 

Senator Hunt. The State is rather noted for fishing itself; isn't it? 

Mr. Morris. As I remember, it was North Carolina or some such 
place. They also have fish there. 

Senator Hunt. How long were you in session ? 

Mr, Morris. For 6 months. 

Senator Hunt. And he was fishing for the full 6 months ? 

Mr. Morris. I don't believe that he was during that last portion. 
Some other things came up which made it inad\asable for us to call 
him at that time. 



144 ORGANIZED C'RIIME IN INTERSTATE COMMERCE 

Senator Hunt. I take it from your answer to my question that 
the grand jury would primarily hold the sheriff accountable for the 
lack of enforcing the law ? 

Mr. Morris. I think he is the supreme authority in the county; 
yes. 

Senator Hunt. Is that the sheriff that was removed by the former 
Governor, or was that in another county ? 

Mr. Morris. I think that is another county, sir. 

Senator Hunt. It is a little difficult to understand, Mr. Morris, 
after your investigation and what you have put in your report, that 
you were unable to bring any indictments of any kind. What par- 
ticularly intimidated your grand jury? 

Mr. Morris. Well, I think that some of the things which actuallj' 
stopped us from doing more were things beyond our control and 
which actually have no bearing ; certain State legislation which unfor- 
tunately was enacted at the time our jury was in session. 

Senator Hunt. I know you are not an attorney, but do you happen 
to know what that legislation was, or what the purport of it was ? 

Mr. Morris. Yes. It was intended to strengthen our jury system 
by increasing the number of members on each jury in order that it 
would be easier to maintain a quorum, and the law was enacted in- 
creasing the number of jurors without the saving clause to the jury 
which was in existence at the time of the enactment, and it was taken 
then to the circuit court. 

The first indictment we returned was appealed to the circuit court 
and then to the supreme court as to whether or not we were a legally 
constituted body, and there was considerable confusion for some time 
and we didn't know what to do. 

Senator Hunt. I have no other questions. 

The Chairman. The sheriff you referred to was Sheriff Jimmy 
Sullivan of Dade County ? 

Mr. Morris. That is true ; yes. 

The Chairman. Thank you, Mr. Morris. 

TESTIMONY OF HON. STANLEY MILLEDGE, JUDGE OF THE 
CIRCUIT COURT OF DADEn[!OUNTY, FLA. 

The Chairman. Judge Stanley Milledge, please. 

Judge Milledge, do you solemnly swear that the testimony you will 
give the committee will be the truth, the whole truth, and nothing but 
the truth, so help you God ? 

Judge Milledge. I do. 

The Chairman. The committee appreciates your appearance here, 
and we hope you will feel free to give us any information you think 
will be of help to us. 

Mr. Halley. Judge Milledge, are you a judge of the Circuit Court 
of Dade County ? 

Judge MiiXEDGE. Yes. 

Mr. Halley. How long have you been a member of that bench ? 

Judge Milledge. About 5i/^ years. 

Mr. Halley. Did you, in connection with your official duties, become 
acquainted with any matters of law enforcement in Dade County? 

Judge Milledge. Well, my principal source of knowledge was prior 
to my being on the bench, or, rather after I had served an interim term 



ORGANIZED CRIME, IN INTERSTATE COMMERCE 145 

of C months. Then I was State attorney for 2 years from August 1 
1943, until I went on the bench 2 years hiter. 

Mr. Halley. In w^hat year did you ^o back on the bench ? 

Judge MiLLEDGE. I went back on July 1, 1945. 

Mr. Halley. Now, did you have occasion at some time to appoint a 
number of private citizens as agents of the court and furnish them 
with warrants to obtain evidence ? 

Judge MiLLEDGE. On one occasion. I don't recall just when it was. 
I believe it was a year ago last March or April. 

Mr. Halley. Would you state exactly what you did on that occasion, 
Judge ? 

Judge MiLLEDGE. Some people came to me with their affidavit just as 
a law-enforcement officer, fortified by photographs of some place over 
at Miami Beach showing headphones and all the usual paraphernalia 
not merely of a gambling establishment but a relay station at least for 
disseminating gambling to bookies. On the basis of the affidavit, 
which was in the usual form of affidavit upon which a warrant of 
arrest and search is sought, fortified by other testimony, considerable 
doubt was expressed as to whether if that warrant were given to the 
law-enforcement officers designated by law to serve warrants it would 
be effectively served, and I appointed an elisor under the statutory 
provision which permits the court to do that in case of necessity. 

Mr. Halley. Did you furnish your elisor with warrants? 

Judge MiLLEDGE. Yes. 

Mr. Halley. And was the warrant served on the premises at which 
there was alleged to be this gambling and bookmaking equipment ? 

Judge MiLLEDGE. It was. 

Mr. Halley. Would you state the name of the premises at which 
the establishment was located ? 

Judge MiLLEDGE. I am sorry, I don't recall. I could 

Mr. Halley. Was it the Surf side Hotel at Miami Beach ? 

Judge MiLLEDGE. I believe so. 

Mr. Halley. And what was the result of the serving of the warrant ? 
Was an indictment found on the premises ? 

Judge MiLLEDGE. Yes. The warrant was returned to me. Of course, 
any prosecution upon that warrant would not be in the circuit court ; 
so, I had nothing further to do with any prosecutions that might have 
resulted from that action. 

The warrant, of course, having issued from the circuit court, was 
returnable to the circuit court; and the warrant, affidavit, and the 
objects seized as a result of the warrant were then turned over to the 
clerk of the Criminal Court of Record of Dade County. 

Mr. Halley. Did your elisors find a short-wave radio in operation 
on those premises ? 

Judge MiLLEDGE. I am sorry, I don't recall. 

Mr. Halley. Do you know whether they found a large number of 
telephones present? 

Judge MiLLEDGE. Yes; I remember that. I haven't had any oc- 
casion to check back on any of this since the return of the warrant. 
I am speaking from memory, but I do recall that there was a consid- 
erable number — I don't recall how much — of telephone equipment. 

Mr. Halley. Did they find a bookmaking establishment operating 
as well ? 

Judge MiLLEDGE. I believe so. 



146 ORGANIZED GRIME' IX INTERSTATE COMMERCE 

Mr. Hali^ey. Do you know whether the case after it left your hands 
was prosecuted to a conchision ? 

Judge MiLLEDGE. No. An information was filed by the solicitor of 
Dade County, and there have been some hearings on it recently. In 
addition to knowing about it from reading the newspapers, I am 
aware of it because one of the assistant county solicitors telephoned 
me and asked me if I would testify in the criminal court of record 
as to what evidence I had upon which I issued the warrant to an 
elisor rather than one of the regular constituted law-enforcement of- 
ficers. I told him I was willing to do so, but I have heard nothing 
on it since, and I don't know exactly what has happened; but I do 
know from that that there has been no trial of the case. 

The Chairman. You mean, the arrest was made in April 1949 and 
there has been no trial as yet ? 

Judge MiLLEDGE. I am not certain of the date, but there has been 
no trial, and I believe that is the approximate date of the arrest. 

Mr. Halley. Is that an unusual delay on an information for gam- 
bling and operating a handbook ? 

Judge MiLLEDGE. Well, in my circuit court we have criminal juris- 
diction over capital offense; but, speaking from general knowledge, 
I would say this type of case that was not unusual ; no. If it were 
some insignificant bookmaker I would say that was rather longer 
than usual. 

Mr. Halley. Are you properly interpreted in saying that in case 
of an important law breaker there is a lengthly delay in the adminis- 
tration of justice in Dade County? 

Judge MiLLEDGE. There usually seem to be difficulties of one sort 
or another that are always encountered, perhaps sometimes the ab- 
sence of witnesses that are material as, for example 

The Chairman. We appreciate the absence of witnesses, Judge. 

Judge MiLLEDGE. Yes. I understand you are having the same 
difficulty. 

When I was State attorney we had a long session of the grand 
jury, from May until November. We called in the members of the 
Miami Beach group most of the names of which I recall from having 
heard them read out here by you this morning. Senator Kefauver. 
We called one of the accountants of the group, realizing, of course, 
that we were giving immunity, but we didn't think that was giving 
him anything because he already had the most effective immunity 
that he could possibly have. As a result of that, the record and testi- 
mony of one of the partners, we returned indictments against all of 
the others. 

Of coui-se, with us, criminal prosecutions except in capital cases are 
not upon indictment. They are upon information by the county 
solicitor, and an information can issue directly by the solicitor or 
he can use the grand jury indictment as well as a base. He is not 
by law required to inform simply because a grand jury has indicted, 
but he did. He informed against the same persons whom the grand 
jury indicted, but those cases never came to trial, and I understand 
ithat one of the witnesses, the accountant, went to Brazil ; and it is my 
information that he has never returned here. 

The Chairman. What is his name? 

Judge MiLLEDGE. Davis. R. Davis, I believe. And the other one, 
the one we got the information from, Friedman, got ill, I undei^tand, 
and had to spend a great many months in a New York hospital. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 147 

I understand that when tlie case was finally called it was called 
at the insistence of the defendants who complained of the long delay 
in not being brought to trial. Of course, the State was then unable 
to proceed because it had no witnesses. 

Mr. Halley. Mr. Chairman, at this point I would like to offer in 
evidence a clipping from the ]Miami Daily News dated July 11, 1950. 

The Chairman. That will be received and admitted as exhibit No. 
107 to Judge Mi Hedge's testimony. (See appendix, p. 740.) Do you 
want to read part of it? 

Mr. Halley. May I? This is headed "County Delays Elisor Con- 
ference," and it states that there is a conference pending in connection 
with the cases of 15 men arrested, and I am quoting : 

County authorities have postponed until Thursday their conference on future 
action in tlie cases of 15 men arrested in an elisor raid on the Surfside Hotel at 
Miami Beach a year ago last April. 

The conference wdiich has been called, according to the newspaper, 
will be with the assistant of the county solicitor — 

and attorneys for the S. & G. syndicate. The latter have moved to suppress 
evidence in the case on grounds that an elisor warrant is illegal. 

Do you know w^ho the S. & G. syndicate are ? 

Judge MiLLEDGE. Well, that is the popular name, shall I say, of 
the peoj^le whom I referred to as having been indicted by the grand 
jury in the long term of 1914 and the same people whose names I 
heard read this morning as not having been served by the subpena of 
this committee. 

Mr. Halley. Are they the people to whom you referred as having 
been successful in many cases in delaying the administration of 
justice? 

Judge MiLLEDGE. I wouldn''t say they exclusively; no. 

]Mr. Halley. They and others? 

Judge MiLLEDGE. And others ; yes. 

Mr. Halley. Do you know whether or not the police department of 
Miami Beach cooperated with your elisors when they attempted to 
serve a search warrant? 

Judge MiLLEDGE. Well, of coui*se, I w^asn't there 

Mr. Halley. Was a report made to you ? 

Judge MiLLEDGE. Yes ; that they did. 

Mr. Halley. And a report was made by the elisors, by your elisors, 
and their official return to you ? 

Judge MiLLEDGE. That is correct. 

Mr. Halley. Would you state what the official return to you was? 

Judge MiLLEDGE. Hostility on the part of the police officers in- 
volved. 

Mr. Halley. Were there any police officers who appeared on the 
premises while the raid was in progress ? 

Judge MiLLEDGE. So it was reported to me. 

Mr. Halley. Did they assist the elisors ? 

Judge MiLLEDGE. No. They sought to hinder them. 

Mr. Halley. Can you name any of the police officers who sought to 
iiinder your elisors in the service of their warrant? 

Judge MiLLEDGE. I am sorry; I don't recall their names. 

Mr. Halley. Would you recall a name if I mentioned it? 

Judge MiLLEDGE. I doubt it. I doubt if I would. 



148 lORG'ANIZED CRilME IN mTER'STATE COMMERCE 

Mr. Halley. I show you a name and ask you if it refreshes your 
memory [handing document to witness]. 

Judge MiLLEDGE. The city of Miami Beach you are speaking of ? 

Mr. Halley. Yes. 

Judge MiLLEDGE. I am sorry ; I don't know the gentleman and even 
looking at it I am not sure. I don't recall. 

Mr. Halley. But you are definite that certain police officers of 
Miami Beach did impede the service of the warrant ? 

Judge MiLLEDGE. Yes, if I can believe the reports, and I do believe 
them that were given to me. 

Mr. Halley. Thank you. I have no further questions. 

The Chairman. Judge Milledge, just tell us about the problems. 
You have been prosecutor and you have been a judge for 5I/2 yeai-s and 
a State's attorney prior to that time and then a circuit court judge 
before then. What is the difficulty ? 

Judge Milledge. Well, Senator, I think it has two aspects shall I 
say. There is a technical difficulty in some of it. So far as dealing 
with this situation on a local level such as on the indictments of the 
people whom I mentioned a while ago that doesn't represent anything 
that is beyond the technical power of the local people to deal with. 
There our difficulty is our unwillingness to do so, our lack of desire 
to do so. We seem always to have the misfortune of having in office 
at any given time some people who want to enforce these gambling 
and other criminal laws dealing with organized crime, but we always 
have some who wouldn't. Then the thing shifts around and in those 
offices where you have people willing to do something they go out and 
lackadaisical fellows take their place and the converse takes place 
in some other department. 

So, you always have some willing to do it and some who are not. 
You never can get them organized, get the team organized at any one 
time to do something. It isn't entirely the fault, in my opinion, of 
any one officer. It is a combination of perhaps the judiciary, or the 
judiciary perhaps are not entirely blameless in the matter. 

The Chaikman. Why is the judiciary not blameless? 

Judge Milledge. Well, a little fear, shall I say, of the power of the 
racket people. People who hold elective offices are always apparently 
a little concerned about re-election, of course, and the power of the 
money that is behind the rackets and the fear of antagonizing this 
business, the fear that so much money will be put behind them at the 
next election that they will be defeated. 

The Chairman. You mean, it is notorious in Dade County that 
even candidates for the judiciary apprehend that gangsters of great 
230wer and with a lot of money might be able to adversely affect their 
elections ? 

Judge Milledge. Of course, it is very hard for me to speak of other 
people, but I would say that is a thought that exists in the minds of 
most people and I can see no reason for making an exception as regards 
the judiciary. 

Now, I don't wish to infer that there is any corruption in that field. 
I think there is corruption but I don't think it is that department. 

The Chairman. Who tried the matters of criminal cases? The cir- 
cuit court has jurisdiction of felonies, is that correct? 

Judge Milledge. Capital felonies. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 149 

The Chairman. How are the other criminal cases tried? 

Judge MiLLEDGE. Well, there is a criminal court of record which has 
jurisdiction of all felonies less than capital felonies and a court of 
crimes that deals with misdemeanors. However, it has been the 
practice locally for a long time, as long as I can remember, sort of an 
unofficial division of this business, that although this gambling busi- 
ness or violations of State laws by either gambling which is a mis- 
demeanor and operation of a gambling outfit which is a felony if those 
things occur within municipal limits they are treated as violations of a 
municipal ordinance, I presume to get the revenue from the fines. So, 
the only prosecutions that are had are had under the municipal ordi- 
nances and the court uses the procedure of fine with the person fined 
going back and operating all over again. 

Now, that part of it is simply one of attitude. However, I believe 
this is a field in which no matter how much people try there is extreme 
difficulty if not impossibility in coping with certain aspects of this 
thing as I found out myself in trying to ferret out some information 
about this wire service and as a result of which I drew the act which 
is presently the law of the State, presented in 1945 and 1947 and 
finally passed in 1949. 

In the course of that investigation I found it impossible to get 
hold of some of the people that I wanted to reach. For example, 
there would be a contract made for a leased wire from say New- 
York to Miami. The contract was made by people who aren't here 
and whom I couldn't reach. Of course, I had difficulty in reaching 
people who were presumably here. For example, ther& w^ere certain 
names with which I got familiar but wdiose faces I was never able 
to see and I was never able to get process served on them because 
when process was turned over to the officers they told me, "We heard 
of those names, but we have never seen their faces." 

There were names like Walter Keough and Haggerty. Their names 
appeared on papers of dealing with these wire services and I think 
there was somebody named O'Brien. I would hear about these people 
but I never could and had no means of apparently ever being able 
to get hold of those people and get them either before me on the 
processes of the State attorney or the processes of the grand jury. 

You are greatly handicapped when you find what you need in 
order to protect the interests of the State of Florida and you can't 
even get hold of the people whom it is necessary for you to get hold 
of in order to lay out some kind of a program, legislative or otherwise. 

So, on that aspect of it when you get into this part of it that is 
interstate I think you will find that thoroughly honest and unques- 
tionably competent men like the present attorney general of Florida 
are up against some insuperable difficulties because of the power, 
because the power extends as far as the State line and the other end 
is always someplace else and he can't get hold of it. And, to a limited 
extent I found that was true, too. 

The Chairman. So, at least as to the interstate use of wire serv- 
ices in connection with gambling and criminal activities you feel 
that the only way it can be handled is by the Federal Government 
putting some blocks in the way ? 

Judge MiLLEDGE. Yes. I think there are a few people who hon- 
estly would ask the Federal Government to take over the whole field 
of organized gambling, but I don't think it is necessary. However, 



150 lORGANIZED ORilME IN INTERSTATE COMMERCE 

a thing like this wire service, communications without which there 
can hardly be any large scale gambling I think would be extremely 
difficult, if it is too much to say impossible, for the State to handle 
because the thing you are trying to deal with is not confined to the 
State. I think it is the same problem as interstate commerce or 
anything else. 

The Chairman. Judge, I have your quotation of the comment you 
made charging the Dade County Grand Jury which I think is some- 
what of a gem and I would like to read it to you and see if you made 
this statement : 

Going to the multiraillion dollar rackets they could not exist unless officers 
charged with law enforcement were not afraid of gang overlords' money than 
the people who elected them. 

Is that what you said ? 

Judge MiLLEDCxE. I certainly did and nothing has happened since 
to change my mind. 

The Chairman. You think that the people charged with law en- 
forcement here in this section are more afraid of gang overlords than 
they are of the people who elected them ? 

Judge MiLLEDGE. Yes. I think that is perhaps changing a little 
bit. I think public opinion here is changing for the better. 

The Chairman. So I take it the chief difficulty has been in the 
enforcement branch, that is, the people who have to enforce the law, 
the sheriff and the police department, or, would you specify where 
your chief difficulty has been ? 

Judge MiLLED(3E. Well, personally I do not mind specifying, Sen- 
ator, but I would rather you would excuse me from not being any more 
specific about it. 

As I heard Mr. Morris say a while ago, of course, the sheriff is the 
chief law-enforcement officer but frankly I don't think you can lay 
everything at the sheriff's door. I think the responsibility has to be 
divided a little bit more than that. Our municipal police, our prose- 
cutors, and our courts, they are all a team of law enforcement and if 
you get the whole team working, I mean, if you do not get the whole 
team working it is very difficult to get anything done. 

The Chairman. The public too is a part of the team, isn't it? 

Judge MiLLEDGE. Yes. 

The Chairman. Senator Hunt? 

Senator Hunt. Judge, do your State laws set out, as in some State 
laws, that where a sheriff or a prosecuting attorney has cognizance 
or is aware of violations under his jurisdiction, whether a complaint 
is made or not, he himself is subject to fine and imprisonment if he 
doesn't prosecute on his cognizance ? 

Judge MiLLEDGE. I know of 

Senator Hunt. Your law doesn't provide that? 

Judge MiLLEDGE. I know of no specific provision of that character. 

Senator Hunt. It would be rather helpful if you had that law in 
your Florida law books, wouldn't it ? 

Judge MiLLEDGE. Yes ; I believe it would. Senator. I think it would 
help. 

Senator Hunt. I noted in last night's paper that your State Senate 
now is taking an interest in this matter and has appointed a com- 
mittee of thi-ee to look into the situation to see what the State itself 



ORGANIZED CRIME: IN INTERSTATE COMMERCE 151 

can do on this matter. I will leave this thou<^ht, so that perhaps yovi 
mi^ht want to sn^ifgest any laws that might help the situation. 

Judge MiLLEDGE. Thank you very much. I certainly will pass that 
on. 

Senator Hunt. Judge, you speak of being unable to get in contact 
with or subpena those people operating on a Nation-wide basis. How- 
ever, I am sure you do feel that those people cannot operate Nation- 
wide and into Florida without their local contacts here. 

Judge MiLLEDGE. That is true, of course. 

Senator Hunt. Let's talk for a few minutes, Judge, about the eco- 
nomics of the situation. Do you have many people in this area who 
think that gambling brings business or creates business or promotes 
prosperity or is good for the community ? 

Judge MiiXEDGE. Yes ; we do, but we don't have nearly as many of 
them fortunately as we used to have. I believe at one time, perhaps 10 
years ago, it would be fair to say that a majority of the people here 
felt that way. Whatever they thought about the other aspects of it 
tliey tended to blink at it as a sort of economic necessity, as I suppose 
some of us do about the Florida divorce laws as that sort of thing. I 
am certain, however, that the proportion of the people who believe 
that is rapidly diminishing and I would venture the guess that the 
majority of the people here now are convinced that it is an economic 
loss. 

Senator Hunt. Well, take here in this area^ — we had some figures on 
it — it goes up to millions yearly and I think the people of your com- 
munity if they don't understand should know that that "take'' doesn't 
stay in Florida, that it goes to the heads of the syndicates primarily 
in New York, Cleveland, Chicago, and Los Angeles, and so forth. 

Just for the information of the public here in Florida, you do have 
here in Florida a sales tax, don't you ? 

Judge MiLLEDGE. Yes. 

Senator Hunt. I will make the statement, and this is based on 
actual ex])erience, that if you could eliminate gambling in this area 
you would find that those millions, roughly estimated at $15,000,000 
a year from this particular area would go into legitimate channels of 
trade. It would not only be far more beneficial to your merchants 
and to your general business activities than the money that is spent 
on gambling, but it would also be very beneficial to your local gov- 
enunent. Not knowing how your taxes are divided, if it all goes to 
the State or not, I say it would be most helpful if a tax could be col- 
lected on that vast sum of money that goes out of your State for 
gambling, that if you didn't have gambling it would go into legitimate 
trade channels. 

I make this statement advisedly because I had the same experience 
in my State where we watched it carefully, and where gambling was 
closed down the sales-tax situation and general business conditions 
improved, and improved immediately. 

I think that might be a thought that you might get over to your 
people that would be somewhat helpful. 

Judge MiLLEDGE. I am sure it will. 

Senator Hunt. I haven't any other questions. 

The Chairman. Judge, do the other members of the judiciary in 
Dade County in this section share your general views about the prob- 
lems you have testified about ? 

68958 — 50 — pt. 1 ill 



152 ORGANIZED CHIME' IN" INTERSTATE COMMERCE 

Judge MiLLEDGE. I am not sure, Senator. I believe tliey do. 
The Chairman. Judge, we appreciate your appearance before the 
committee and thank you for the information you have given us. 

TESTIMONY OF DANIEL P. SULLIVAN, OPERATING DIRECTOR, 
CRIME COMMISSION OF GREATER MIAMI 

The Chairman. Mr. Sullivan, do you solemnly swear that the 
testimony you will give this committee will be the whole truth and 
nothing but the truth, so help you God ? 

Mr. Sullivan. I do. 

Mr. Halley. What is your occupation, Mr. Sullivan ? 

Mr. Sullivan. I am operating director of the Crime Commission 
of Greater Miami. 

Mr. Halley. Would you state for the record what the Crime Com- 
mission of Greater Miami is; what is the organization, its organiza- 
tion, and so forth? 

Mr. Sullivan. The Crime Commission of Greater Miami is a civic 
organization that was founded by representatives of about 90 civic 
clubs. They held a law-enforcement session in the Mayfair Theatre- 
in March 1948. That session was addressed by Attorney General Tom 
Clark, and the delegates at that convention by actual vote agreed to 
form a law-enforcement agency, a crime commission, for the purpose 
of engendering a better respect for law and attempt to get better law 
enforcement in this area. 

Mr. Halley. When did you become the operating director ? 

Mr. Sullivan. In August 1948. 

Mr. Halley. Will you state for the record your experience and 
qualifications prior to becoming operating director of the Crime Com- 
mission of Greater Miami ? 

Mr. Sullivan. I was special agent of the FBI, supervisor and agent 
in charge for IQi/^ years, beginning with 1932 up to the latter part' 
of 1942. 

Mr. Halley. By "the FBI" you mean the United States Department 
of Justice, Federal Bureau of Investigation ? 

Mr. Sullivan. That is right. Subsequently, I was director of plant 
protection at the Consolidated-Vultee Aircraft plant here in Miami 
all during the war, having charge of the responsibility for the investi- 
gation of sabotage and antiespionage and plant security and investiga- 
tion at the plant. I subsequently was employed as chief investigator 
by the Florida State Racing Commission during the year 1945-46. 

Mr. Halley. Mr. Sullivan, have you prepared certain exhibits show- 
ing the known gangsters living and operating at Miami Beach? 

Mr. Sullivan. At Miami Beach and elsewhere in Dade County and 
in Broward County. 

Mr. Halley. Would you produce those charts ? 

Mr. Sullivan [produces three charts] . This exhibit (No. 109, p. 740) 
is not to scale. It was designed to give the committee an idea as to the 
general location of the major gambling operations in Broward County 
in relationship to the city of Miami and the general area. The center 
of that chart shows the United States Federal Highway, which is the 
principal highway running north out of Miami. Just beyond, a 
matter of a hundred feet or so, north of the Dade County line, iiii 



ORGANIZED CRIME IN INTERSTATE COMMERCE 153 

Broward County, on the right side of the highway is located the 
Colonial Inn. Immediately next to the Colonial Inn is the Gulf stream 
Kacetrack, which goes to the corner of the United States Federal 
Hif^hway and Hallandale Beach Road. The Club Greenacres is located 
about a mile and a half west of the United States Federal Highway 
on the Hallandale Beach Koad, and almost directly across from the 
Gulfstream Racetrack -property is located what is called the Farm. 
Going east from the Federal Highway about a mile and a quarter, 
toward the ocean, is located the CUib Boheme. These three places- 
Colonial Inn, Greenacres, and Club Boheme— are the three principal 
gambling operations in Broward County. 

I might say that the Colonial Inn here is not operating as a gambling 
place. In the spring of 1948 an injunction suit was brought against 
it, and an injuction was granted and it closed gambling. It has since 
been run as a dance hall or night club for the last two seasons. The 
property was formerly owned by Jake Lansky, of Broward County. 

The Club Boheme subsequent to May 1948 began gambling opera- 
tions with the same gi-oup that formerly controlled the gambling at 
Colonial Inn. 

Mr. Halley. In your subsequent testimony you will identify the 
people that you are talking about? 

Mr. Sullivan. Yes. I just merely want to give you the general 
picture now. The Club Greenacres is operated by generally the same 
group which formerly was connected with the Colonial Inn but who 
subsequently took over the gambling at the Club Boheme. The 
Farm is a large abandoned night club and gambling house. Orig- 
inally it was called the Plantation. In the late thirties it burned 
down. Subsequently a new building was placed on it, and they called 
it the Farm in the year 1939. In 1940 an injunction suit was brought 
against it for gambling operations, and a permanent injunction was 
granted. 

In the year 1945-46 I was with the State racing commission and 
I made an investigation of wire service. At that time I found that 
the service was originating in Baltimore, Md.-, and a line was running 
all the way down through Maryland, Virginia, North Carolina, South 
Carolina, Florida, and into Miami. On this line there were certain 
drops where customers took the service from the wires and then dis- 
seminated it locally. At that time the principal places for the dis- 
semination of the information received from this line, and which was 
broadcast by the local distributors to bookies, were located at two 
points: One in Dade County at the Dade County Newsdealers on 
Northwest First Court across from the courthouse, and the other place 
was located at the Farm. The information that comes in on this wire, 
which is a drop wire, is received by ticker. The local distributor then, 
through an arrangement at that time made with the Western Union 
Co., obtained leased wires, and through the Western Union connected 
the customers, generally made up of bookies, with the Western Union 
frame. Then at the location where the information is received over 
this interstate wire there would be a hook-up whereby a man or an- 
nouncer could speak into a microphone and that microphone was in 
turn connected with the multiplicity of wires appearing on the frame 
of the Western Union, so that his voice could be heard simultaneously 
in gambling places and any other places which might pay for this 
service. The Farm at that time was set up so that this simultaneous 



154 ORGANIZED CRIME' IN INTERSTATE COMMERCE 

broadcast to bookies could be made from that location as well as at 
the Dade County Newsdealers. It was explained to me that the pur- 
pose of that was so that, in the event the county authorities of Dade 
County should by some action interfere or interrupt the wire service 
here, it could be carried on from the broadcast emanating in Broward 
County at the Farm. 

In the year 1946 there was one service company that brought in the 
wire service and distributed it. It was called the Hollywood News 
Service. It changed its name to Miami News Service. Early in that 
year there was a service started up in the name of Trans-America 
News & Publishing Co., which was a Chicago-operated race-wire serv- 
ice, running in competition with the established Continental Press. A 
leased wire was established from Cicero, 111., to a place located in Miami 
Shores, just north of Miami, at tlie Graham Press. Another wire tele- 
meter line from the Graham Press to New York City and return was 
also established at that location. The Trans-America went into busi- 
ness and subsequently, early in the year, around June or July 1947, 
after Trans- America was established and had established other similar 
services in other parts of the country, and after James Ragan was 
killed, they announced that they would retire from the wire-service 
business. At that time the facilities that had been established in the 
Graham Press were not released. These facilities were turned over 
and made a part of the established Continental Press Service. 

At the present time I believe I am right in saying that the Graham 
Press is not used as a major distribution point for the dissemination 
of racing information. It is merely used as a drop, one of several 
drops. In 1946 there were approximately 22 outlets in the Greater 
Miami area for wire service. Within a year that number liad jumped 
to between 120 and 125 in the period of 4 years. 

Mr. Hallet. In the meantime wire service was made illeaal in the 
State of Florida? 

Mr. SuLLTVAN. This was up to the time they cut them hist year, in 
December 1949. I think there will be testimony to the effect tluit tlie 
wire service was cut off throughout the State. 

The identities of the individuals that are connected with Colonial 
Inn, Club Greenacres, and the Club Bolieme, I think, can probably 
be handled in the next chart. 

The Chairman. We would like to have this chart and the succeeding 
charts marked as exhibit Nos. 108, 109, and 110 to the testimony of this 
witness. (See appendix, pp. 740-742.) 

Mr. Sullivan. I would like to stress the fact that the Graham Press 
is not to my knowledge a bookmaking operation; it was merely one 
outlet. 

Mr. Halley. That is the Graham Press ? 

Mr. Sullivan. That is right — the Graham Press. 

Mr. Sullivan. Now, this chart (exhibit No. 108, ]). 741) is generally 
concerned with the major gambling operations in Broward County. It 
shows certain points of gambling o])erations in Palm Beach and Dade, 
Counties. The Colonial Inn was a major gambling o))eration in Bro-' 
ward County until it was closed in May of 1948. The gambling in that 
l)lace was controlled by Jake Lansky and his brother, Meyer Lansky ; 
Joseph A. Doto, alias Joe Adonis, Vincent Alo, alias Jimmie Blue Eyes, 



ORGANIZED CRIME! IN INTERSTATE COMMERCE 155 

Frank Erickson, Bert Brings, Claude Litteral, and Samuel L. Bratt. 
Originally, this gambling operation was a joint venture between this 
group of New York gamblers and a group of Detroit gamblers. That 
existed up through the year 1946. A group of Detroit gamblers, headed 
by Mert Wertheimer, Reubin Mathews, and Danny Sullivan, had about 
321/2-percent interest in the 

The Chairman. I take it that you do not hesitate to explain that 
he is not of your branch of the Sullivan family ? 

Mr. Sullivan. He is Red Irish. They controlled 321/^ percent of the 
operation of the Colonial Inn. Subsequent to that year the interest 
of that particular group of Detroit gamblers was taken over and 
absorbed by the remaining operator from New York. The o})- 
erations of the Colonial Inn are akin to the operations in the Club 
Greenacres. Ninety percent of the ownership of Greenacres is in the 
operators of the Colonial Inn. The other 10 percent of the Club 
Greenacres is divided among two other operators who do not appear 
in the Colonial Inn. The Club Greenacres is considered or has been 
considered in past years as a sawdust joint, but in recent years it 
has been dressed up and it more or less caters to the big-time gamblers. 
The principal income from the Greenacres comes from the "money 
crap game," the New York crap game, and that New York crap game is 
controlled by William G. Bischoff, alias Lefty Clark. Joe Massei, of 
Detroit, bankrolled Bischoff. 

Mr. Halley. The chart shows that both of them lived in Detroit ; 
is that right ? 

Mr. Sullivan. Yes. 

Mr. Halley. Does one of them maintain a local residence and place 
of business in Miami ? 

Mr. Sullivan. Yes; but I would like to reach that later on, 

Mr. Halley. Will you reach that later on ? 

Mr. Sullivan. Yes. These same two men, as will appear on this 
chart, are interested in the gambling operations in ^liami Beach 
called the Club Collins, located at Twentieth and Collins Avenue, 
Miami Beach. That club operated up until 2 months ago. The 
principal game was "skin game," and in that were Jack Friedlander, 
Newark; Joseph Massei, Detroit; William Bischoff, alias Lefty 
Clark, Detroit ; Trigger Mike Coppola, New York City ; and Bennie 
Kaye, New- York City. 

Friedlander, one of the operators of the Club Collins, also is a part- 
ner in the Island Club gambling house located at Sunny Isles in 
Dade County, in the county area. That operation is controlled by 
Jack Friedlander, Samuel P. Cohen, a member of the S. & G., Herbert 
"Pitsy" Manheim, of Detroit, and Sam Gameboy Miller, of Cleveland, 
Ohio. Up to the year 1948 Frank Erickson and Bert Briggs each had a 
15 percent interest in the Club Greenacres and the Colonial Inn op- 
eration. In turn Erickson controlled the gambling casino concession 
at the Boca Raton Club in Palm Beach County. 

Erickson's operations in Dade County have been carried on at the 
Wofford Hotel, beginning in 1941 through 1946. Also at the Roney 
Plaza Hotel for a part of one season and at the Boulevard Hotel from 
1946 to 1950. The gambling operations of Erickson at these three 
places are not similar to the normal gambling operations found in the 
hotels on Miami Beach. They have gambling concessions at most of 



156 lORG'ANIZED CHIMB IN INTERSTATE COMMERCE 

the hotels and these concessions are leased out for sums ranging from 
$2,500 to $50,000 per season. That is merely a gambling monopoly 
given to one or more men who have the privilege of establishing book- 
making operations within the hotels and the cabanas outside of the 
hotels. 

Erickson's interest in the Wofford Hotel was not in the gambling 
concession in the hotel. That was used as headquarters for his agents, 
consisting of Bert Briggs, L. A. Cantor, and Jackie Zeldow. Erickson 
used the Wofford Hotel as a base of operations for the handling of 
large lay-off bets or moneys received by him in New York, New Jersey, 
and possibly at other points. Some of that money, of course, would 
be taken to the racetrack and put through the mutuel machines. 
That was done for the purpose of laying off bets wagered on a partic- 
ular horse. That was more or less a headquarters for the racetrack 
activities of Erickson and his agents. The same condition existed at 
the Boulevard Hotel. The Eoney Plaza Hotel, however, was con- 
sidered to be a gambling concession. That was taken over for the 
purpose of accepting gambling bets from customers located inside the 
hotel and in the cabanas outside on the ocean. 

The operators of the Colonial Inn are reflected in the operations 
of the Louisiana Mint Co. — the joint gambling operations of that 
company are between that company and Phil Kastel and Jack Lansky, 
of Broward County. Phil Kastel is of New Orleans. 

There has been testimony put in the record in a previous hearing 
as to the principal gambling operations of the Frank Costello Syndi- 
cate in the New Orleans area, particularly in the slot machine business. 

I think that more or less generally covers the background of the 
gambling phase. 

(Puts up third chart.) 

Mr. Sullivan. This chart shows three hotels on Miami Beach — the 
Wofford Hotel, the Grand Hotel, and the Sands Hotel. These three 
particular hotels were selected to identify the various persons who 
frequented and used these hotels as a meeting place. 

The history of the Wofford Hotel is found m a lease that was signed 
by Thomas J. Cassara and Neal Lang of Miami Beach on November 
1, 1940, for a period of 10 years. 

Cassara is an attorney. He graduated from the National Law 
School in Washington and he lived in New London, Conn. Neal Lang j 
was at that time manager of the Raleigh Hotel in JNIiami Beach, and ' 
Cassara was also there employed. 

Lang, in a subsequent suit filed in the circuit court, declared that 
he never had any interest in the operation of the Wofford Hotel, that 
he signed the lease merely as an accommodation, and that he did so at 
the instance of Tom Cassara. The hotel was operated by Cassara for 
a period of 1 year, and then subsequently there was a contract signed 
between Abe Allenberg and Frank Erickson whereby they agreed to 
put up certain money to Cassara and take over the operation of the 
hotel. Ten thousand dollars was put up by Allenberg and ten thou- 
sand by Frank Erickson. 

In the year 1940 Cassara had arranged for the building of a hotel 
called the Raleigh Hotel in Miami Beach. Testimony in a case in 
the circuit court was to the effect that he borrowed $25,000 from John 
Angersola, alias John King, of Cleveland, Ohio. He also testified that 



,0RGANIZE1> CRilME IN INTERSTATE COMMERCE 157 

hv had at different times borrowed money in different sums and at 
(liti'erent places from Jimmie Kelley, the father-in-law of Anthony 
Ciirfano, alias Little Augie, and several others. The testimony was 
tluit Anthony Carfano personally had no interest in the hotel. How- 
ever, in the year 1941 Cassara left and went to Chicago. Abe Allen- 
l)erg became resident manager of the hotel and Max Marmorstein be- 
came the manager and operator of the hotel. Max Marmorstein is a 
liotel operator from Cleveland, Ohio. He maintains his office in the 
Ninth and Chester Building in Cleveland, Ohio, and his telephones 
were taken out of that office in 1943 because they were connected with 
gambling operations. That building is the headquarters of the Em- 
pire News Service controlled by "Mushy" Wexler. 

Subsequent to 1941 Otto Lorentzen, a nephew of John Angersola, 
John Cardone, another relative of John Angersola, Abe Allenberg, 
Max Marmorstein, John Angersola and a brother, Fred Ang,ersola, 
and Anthony Carfano were set out as being partners in the operation 
of that hotel. Carfano himself signed correspondence from the hotel 
as managing director. The hotel thereafter became a meeting place 
for well-known racketeers and gangsters from all over the country. 

Erickson, Bert Briggs, Al Cantor, Jackie Zeldow, and Frank 
Strader used the Wofford Hotel as their headquarters for their "on- 
track" gambling operations. 

At that hotel large private gambling games took place. The par- 
ticipants in these games were, among others. Little Augie; John 
Angersola, alias John King ; Joe Massei, of Detroit ; Charles Fischetti, 
of Chicago ; Angelo De Carlo, alias Gyp De Carlo, New Jersey ; Alfred 
"Big Al" Polizzi ; Max Welsberg ; Alfred "Poagy" Toriello, of New 
York City and Providence; Joe Burnstein, of Detroit; and Trigger 
Mike Coppola of New York City. 

Among the clientele, guests, and associates who frequented the place 
were Joseph A. Doto, alias Joe Adonis ; Meyer Lansky ; Vincent Alo, 
alias Jimmie Blue Eyes, from New York City; Frank Costello; George 
Angersola, of Cleveland ; Romeo Civetta and Tony and Carlos Civetta, 
all of Cleveland, Ohio; Alfred Polizzi, Cleveland; Abner "Longie" 
Zwillman, Newark, N. J. ; Nick Delmore, Elizabeth, N. J. ; Nick Bravos, 
Chicago ; Willie Moretti, Bergen County, N. J. ; Joe Di Carlo, of 
Youngstown, Ohio; Joseph Jasper Aiello, alias Fats, of Youngstown; 
Nicholas P. Tamburello, alias Nicoline, Youngstown ; Frank De Fil- 
lipo, New Jersey; Herman Stark, of New York City; William G. 
Bischoff, alias Lefty Clark, of Detroit. 

I have the criminal records here of all of them. 

The Chairman. We would like to have these all filed as one exhibit 
to your testimony. 

(The photographs and criminal records referred to by Mr. Daniel 
Sullivan are on file with the committee as exhibit No. 111.) 

Mr. Sullivan. I have here a number of them, which I won't go 
over. I will turn them over to the reporter. I have some other things 
I could mention in passing. For instance, I have a photograph of the 
home of John Angersola, 5440 La Gorce Drive, Miami Beach. Fla. 
I have a photograph of the home of Charles Fischetti, 6475 Allison 
Road, Allison Island, Miami Beach, Fla. ; a photograph of the home 
of Alfred "Poagy" Toriello, of New York City and Providence, at 
8842 Hawthorne Avenue, Surf side, Fla. 



158 lORG'ANIZED ORIEVLE IN IjVTE'R'STATE COMMERCE 

The Chairman. Let us not mix them up, but if any of the members 
of the press want to make duplicates of the photographs of any of the 
palatial homes they have the committee's permission to do so. Pass 
them around to the ijress tables. 

Mr. Sullivan. Among the persons that I mentioned in this testi- 
mony was Joe Burnstein, of Detroit, Mich. Burnstein is one of three 
brothers, concerning whom there has been some testimony, I believe, 
before the committee. He has been located here at different times 
in the Miami area, and in the past years he was part owner of the 
lounge at the Albion Hotel. Telephone calls have been traced from 
Mickey Cohen's telephone in New York City to the telephone located 
in that lounge. 

In the year 1949 Burnstein became the manager of the Max Cohen 
Distributing Co., a beer distributorship in Miami, and he left town 
after the organization lost about $7,000 or $8,000. At least he went 
into debt and left town, owing creditors to that extent. 

He went to California to join his brother, Izzy Burnstein, who 
owned a string of horses on the west coast, and was back in Miami 
Beach this past season. 

The residence of Vincent Alo is located at 1248 Monroe Street, 
Hollywood, Fla. 

The Chairman. Is that alias "Jimmy Blue Eyes" ? 

Mr. Sullivan. Alias "Jimmy Blue Eyes." Joe DeCarlo, who was 
mentioned in this narration of the persons directing the Wofford 
Hotel, is the same individual who has transferred his operations from 
Buffalo, N. Y., to Youngstown, Ohio. He did this in the year 1945. 
In Youngstown he associated himself w^itli Joseph "Fats" Aiello and 
with Charles "Cadillac Charlie" Cavallero and Nicoline Tamburello. 
In Youngstown they organized the numbers and horse-book-making 
racket in conjunction with a man by the name of Ray Lanese. 

Ray Lanese, according to the chief of police of Youngstown, Ohio, is 
a nephew of Joe Massei, and has been operating the Italian Village 
Restaurant on Twenty-third Street, Miami Beach, which has been 
a place where a great many of these characters frequent. 

The residence of Nick Delmore, of Elizabeth, N. J., is at Terracina 
Avenue, Golden Beach, Fla. It is a new home, just recently built, and 
completed in the last few months. 

In conjunction with Angelo "Gyp" De Carlo (De Carlo is a well- 
known gambling operator) he has operated the Chatterbox Night 
Club in the vicinity of New Brunswick, N. J. De Carlo and William 
"Fats" Riga are owners of the DeRiga Trading Corp. That company 
owns a large subchaser, which was converted here in Miami Beach 2 
years ago and which was refrigerated, and is now used for fishing. 
Associated with them in this enterprise is Frank De Fillipo, who 
comes from their same general area in New Jersey. 

The residence of Sam De Carlo, of Buffalo, N. Y., is located at 6166 
Pinetree Drive, Miami Beach, Fla. 

The operations of the Wofford Hotel connect with the operations 
of tlie Grand Hotel. John Angersola, of Cleveland, appears as one 
of the creditors of Thomas J. Cassara, operator of the Wofford 
Hotel. 

Fred Angersola, his brother, and Beiinie Street signed a lease on the 
Grand Hotel in the year 1944, which lease terminated in the fall of 



.ORGANIZED CRIME IN INTERSTATE COMMERCE 159 

last year. Thomas Cassara was also interested in tlie operation of the 
Grand Hotel. In fact, he was the owner of record of that property 
until the year 1937, at which time he sold it. Then, subsequently, he 
became the lessee of certain night clubs. They had two night clubs 
connected with that property. Along with John Angersola ancl his 
brotlier, Fred Angersola, they signed a lease on that property in the 
year 1!>40, extending for a period of 5 years. Subsequently, Cassara 
in 1941, in the same year that he left Miami Beach and left the Wofford 
Hotel, withdrew his connection with these night-club operations. 

The opei-ations were not too successful, and for several years the 
night clubs did not operate. This past year one of them did operate 
under the name of Chez Paree, and is still in operation as a strip- 
tease night club. 

The lease on the Grand Hotel, although in the name of Thomas 
Cassara and Fred Angersola, did not reflect the true ownership of all 
of the parties concerned. In 1944, in connection with the 5-year 
lease that was given to Fred Angersola and to Bennie Street, there 
was required that the sum of $39,000 be put up as deposit on the lease ; 
$15,000 of this money was put up by Bennie Street; $16,500 was put 
up by Fred Angersola ; and $7,500 was put up by Joe Massey (Massei) , 
whose name does not appear on the record as having any interest in 
this hotel. 

Subsequently, Joe Massey took up his residence in the penthouse 
of that hotel. In more recent months he has been living at a new 
home just constructed at 520 Lakeview Drive in Miami Beach. 

In the year 1946 Dave Glass, a numbers operator and a horse-book 
operator from Philadelphia, joined Bennie Street, likewise a horse- 
book operator, in taking over the lease on the Sands Hotel. That 
lease required the putting up of a deposit of $90,000 in rent money. 
The lease was signed, and that hotel has been operated by these two 
men since that time. Dave Glass himself has operated a gambling 
concession at that hotel. 

The hotel became a gathering place, particularly, for a group of 
gamblers, racketeers, gangsters, from Philadelphia, Pa., headed up 
by Nig Rosen. Nig Rosen heads up a mob of about 25 or 30 men who 
operate in the Philadelphia area. Rosen himself has headquarters in 
New York City, where he is the operator of the Dearest Miss Dress Co. 
His first lieutenant is Max Weisberg, alias "Willie" Weisberg. His 
second in command is Samuel "Cappy" Hoffman, 

The photographs and criminal records of Rosen, Weisberg, Max 
Rothman, Nussie Rosen, Max Seigal, Samuel "Cappy" Hoffman, Mi- 
chael Matteo, Frank Matteo, Anthony Narcissi, Harry Provan, Harry 
Siegel, Irving Greenberg, Joseph Herman, Abe Glassman, Moe New- 
man, and Jack Newman I have here, and they are available to be 
introduced in the testimony. 

The Chairman. All right, sir. 

Mr. Sullivan. The operations of this particular group centered at 
the Sands Hotel. In the year 1946, when this lease was signed and 
the hotel operation was taken over by Street and Glass, there were 
very few of these men who showed up. In the season of 1948-49, a 
year ago, however, the whole group that I have mentioned made this 
place a headquarters. They had taken over the gambling operations 
and iramblinir concessions at a number of hotels in Miami Beach but 



160 ORGANIZED ORIDVIE DST INTERSTATE OOQVIME'RCE 

used the Sands Hotel more or less as a headquarters for their gambling 
operations. 

Closely associated with them at the Sands Hotel was Jack Fried- 
lander, of Newark, N. J., Marco Reginelli, of Camden, N. J. (also 
known as the Little Guy), who also appeared to be a party in interest 
in their gambling operations. William Moretti, alias "Willie Moore," 
of Bergen County, N. J., was frequently at the hotel with Nig Rosen. 

In February 1949 the wire service was shut off in the Miami Beach 
area. On the Sunday subsequent to that shut-off there was a meeting 
at the hotel at which Marco Reginelli, along with Nig Rosen and a 
very few others in this same mob, attended. 

The history and the connections of this gang, I believe, can be found 
in a letter from the Philadelphia police department, dated July 19, 
1949, in which their history and the general history and the operations 
of this crowd in the Philadelphia area is set forth by Mr. Frank Rich- 
ardson, assistant superintendent of police, commanding the detective 
division of the Philadelphia police department. Among the other 
general statements as to the operations of this gang, he mentions the 
fact that they headquarter at Miami Beach during the winter season, 
where they maintain gambling operations. 

He goes on to tell their general background from the time that they 
started their operations back in the early twenties, during the pro- 
hibition era, and established themselves as bootleggers and rumrunners 
and the principal gangsters in the Philadelphia area. 

The Chairman. That will be made an exhibit to your testimony 
and will be a part of the record. 

(The letter referred to was marked "Exhibit No. 112" and appears 
in the appendix on p. 743.) 

Mr. Sullivan. Among the persons connected with the Sands Hotel 
as having a financial interest and who was referred to by the employees 
of the hotel, was Alfred Polizzi, "Big Al" Polizzi, of Cleveland, Ohio, 
as distinguished from Albert Polizzi, "Chuck" Polizzi, of Cleveland, 
who was reported to be a cousin of Alfred Polizzi. A photograph and 
criminal record of Alfred Polizzi is here, and I would like to introduce 
it into the record. 

The Chairman. It will be made a part of the record. 

( Exhibit No. Ill is on file with committee.) 

Mr. Sullivan. In recent years Polizzi has moved to the Miami area, 
where he is now engaged in the construction business. He has been in 
association, however, with "Little Augie" Pisano and the various 
other persons who frequented the Wofford Hotel. He is the owner 
of the Wood Duck, a yacht which is anchored at the Miami Beach boat 
slips. That boat is registered in his name, under Coast Guard No. 
41J198. That same boat was registered prior to July 23, 1940, to 
Arthur B. McBride, of Cleveland, Ohio, who was either at that time, 
or shortly thereafter, the sole owner of the Continental Press wire 
service. 

On July 23, 1940, according to tlie records of the Coast Guard, 
Arthur McBride transferred title of this boat to Fred Angersola, alias 
Fred King, the same man who was the lessee of the Grand Hotel, and 
whose brother has been active in the operation of the Wotford Hotel. 

On August 15, 1941, Fred Angersola transferred this boat to one 
Charles K. Green, whose identity is not known to nie. Five days later. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 161 

on August 20, 1941, the boat was transferred under United States 
Customs No. 241036, as an undocumented vessel. The information on 
that transfer of title is not known, but the next notation in the Coast 
Guard files reflects that this boat was sold by Amy King, who is the 
wife of John King, to Alfred Polizzi on June 3, 1944. 

The association of John Angersola and Polizzi is reflected in photo- 
stat of deed in the real-estate records of Dade County, in deed book 
2843, page 494, which reflects the transfer of certain lots in the Riviera 
section of Coral Gables, jointly held by John Angersola and his wife, 
Amy Angersola, and Alfred Polizzi and his wife, Philomena Polizzi. 

The Chairman. That will be made as an exhibit to your testimony, 

(The deed referred to was marked "Exhibit No. 113" and appears 
in the appendix on p. 746.) 

Mr. Sullivan. In addition, Polizzi has owned considerable other 
property in the Coral Gables area. On July 29, 1946, M. F. Pafford 
and his wife, Mildred C. Pafford, and George H. Newsome and his 
wife, Mary J. Newsome, and Harry W. Shank and his wife, Goldie F. 
Shank, transferred title to the entire subdivision, known as University 
Estates of Coral Gables, jointly to Arthur B. "Mickey" McBride and 
Alfred Polizzi. A photostatic copy of this deed is offered. 

The Chairman. It will be made a part of the record and an ex- 
hibit to your testimony. 

(The deed referred to was marked "Exhibit No. 114" and appears 
in the appendix on p. 748.) 

Mr. Sullivan. A photograph of the subdivision which is located 
near the Ponce de Leon High School in Coral Gables is offered. 

The Chairman. It will be received. 

(The photograph referred to was marked "Exhibit No. 115" and 
is on file with the committee.) 

Mr. Sullivan. In the year 1939 a major investigation of the num- 
bers racket was conducted by the Cleveland police department. As a 
result of that investigation 19 persons were indicted. Among the 
persons indicted was a man by the name of Scerria, who fled to Mexico. 
John Angersola was also indicted, and one of the brothers, either 
George or Fred Angersola. 

Six of the indicated men used the "Wood Duck in fleeing the juris- 
diction of the court in Cleveland and in going to the Great Lakes and 
passing down through the inland waterway to the Miami area. In 
1941 the case was brought to trial, and the brothers were acquitted. 
The investigation had to do with the investigation of extortion in 
connection with Negro numbers. 

It does not show on these charts but there has been a very close 
connection between the persons who have frequented as clients or 
patrons or customers of the Wofford Hotel and the Grand Hotel. As 
a matter of fact, the Grand Hotel, located on Twenty-third Street, 
is only about two blocks away from the Wofford Hotel, and the same 
persons who either were patrons of, or frequented, the Wofford Hotel 
also frequented the Grand Hotel, and that area around the Grand 
Hotel became nationally known as a meeting place probably for more 
nationally known racketeers and gangsters than any one local area in 
the United States. 

The investigations that we have conducted, and which cannot pos- 
sibly be gone into fully here, disclose a tremendous amount of property 



162 ORGANIZED CRIME IN INTE'R'STATE COMMERCE 

that has been accumulated by racketeers from all parts of the country, 
particularly those east of the Mississippi River. The money that is 
poured into legitimate busineses, in hotel investments, and so forth, 
is most difficult to trace. 

The Chairman. Mr. Sullivan, the matter of money placed in legiti- 
mate businesses by these people is one of the primary parts of the 
inquiry of this committee. I know that you have already furnished 
the committee with very substantial infoniiation. I will ask 
that you document all that you have, and that will be made a part of 
your testimony and part of the record of this committee. We fully 
realize that going into the details of each one of these investments at 
this hearing would consume too much time, and so we will handle it 
in that fashion, but your documentation will be made public when 
it is completed. 

Mr. Sullivan. For instance, in the case of Joe Massei, of Detroit, 
he has spent the great bulk of his time in Miami Beach for the past 
10 years. His interest is disclosed in the lease on the Grand Hotel. 
His ownership of his home at 520 Lakeview Drive, a tremendous home, 
discloses his interest. He is a one-half owner of the Miami Provision 
Co., which is one of the exclusive provision companies located in 
Miami, and of which there is a photograph here. 

The Chairman, All of these will be made exhibits to your testi- 
mony and a part of the record. 

(Exhibit No. Ill, on file with committee.) 

Mr. SiTLLivAN. He is the owner of the yacht Verjo II, which is stored 
at the Miami Beach boat slips. 

The Chairman. Who is this you are referring to ? 

Mr. Sullivan. Joe Massei. 

The Chairman (indicating document). And this is his criminal 
record ? 

Mr. Sullivan. That is his criminal record, and there is the photo- 
graph of the Italian Village Restaurant, located on Twenty-third 
Street, which is operated by his nephew, Ray Lanese, who was con- 
nected with eloe De Carlo in the operation of the numbers and book- 
making in Youngstown up to the year 1948. 

William G. Bischoff, alias "Lefty" Clark, who is nationally known 
as an outstanding crap dealer and operator of crap games, and who 
is interested with Massei to the extent of 40 percent of the net income 
from the Club Green Acres, makes Miami Beach his home. He resides 
at 4383 North Meridian Avenue, Miami Beach. 

The connection of Massei with the rackets in Dade County is not 
known other than through his backing of the operations of "Lefty" 
Clark, However, our investigations have reflected that Joe Massei 
controls large-scale numbers operations and horseracing books in the 
Detroit area. In that town his chief lieutenant is Pete Licavoli, 
Detroit ]:)olice department No. 30787. There is his photograph and 
criminal record. 

Another of his lieutenants is Joe Bommarito, alias "Scar Face," 
Detroit police department No. 37496. Bommarito is the owner of an 
apartment at 6795 Abbott Avenue, Miami Beach. 

Tlie Chairman, It will be made a part of the record, 

( Exhibit No, 111, on file with conmvittee.) 

Mr. Sullivan. Also associated with Massei in horsebook and num- 
bers o])erations in the Detroit area is Larry ISIcHugh, Detroit police 



ORGANIZED CRIME IN INTERSTATE COMMERCE 163 

department No. J-21944, Herman Bernstein, Detroit police depart- 
ment No. 30946, and Phillip Lieberman, coowner of the Century Bar 
;iiid Kestaurant Equipment Co., located at 2144 Bagley xVvenue in 
Detroit. 

In the year 1947, Tony Accardo, of Chicago, leased the home of 
James Passanante at 9199 Collins Avenue in Miami Beach. Passanante 
is a coowner with Gerhardt Wobernian and Steve Brancaleone of the 
Master Music and Gay Coin Co., located at 4866 Woodward Avenue in 
Detroit. These men, w^ith Steve Robetaille, were connected with the 
Master Music Co. and racehorse handbooks and numbers operations 
in the Detroit area. 

Massei is also associated with them in those operations. Others 
connected with Massei's operations in Detroit are Louis Eicciardi, 
alias "Louis the Wop," Detroit police department No. 8950, Joseph 
Burnstein, Detroit police department No. 14498, Samuel Lipkin, Fred 
J. Drain, Charles Cobbler, FBI No. 1144812, and Nicholas Tamburello, 
FBI No. 9457071. 

Accardo's brother, Martin Accardo, Chicago police department No. 
C-33656, resides at 1217 Granada Avenue, Coral Gables, which home 
he owns. Tony Accardo is also the owner of a yacht called the Glcurijo. 
This boat is stored at the Miami Beach boat slips and shows painted 
on it Clarijo^ River Forest, 111. 

Three years ago arrangement for the rental of this boat slip were 
made by Joe Massei, who at that time stated that he was making these 
arrangements for his partner from Chicago, 111., Tony Accardo. Sub- 
sequently, this boat has been used by Harry Russell, of Chicago, and 
by others for fishing parties, and apparently for pleasure purposes. 
I believe the testimony W'ill hereafter show a connection between this 
boat and Harry Russell's residence and also with the residence of 
George Bowers, one of the operators of the Sunny Isles Casino at 
Sunny Isles, Fla. 

The photograph and criminal record of Louis Ricciardi reflects a 
large number of arrests for drug violations, at least four charges of 
murder and a number for armed robbery and others. A photograph 
of his residence, 9166 Harding Avenue, at Surf side, I also give you. 

I believe it might clarify my testimony if I make a statement to 
this effect: The fact that the chart shows a definite connection be- 
tween certain hotel operations and between certain groups does not 
mean that the associations or possible connections of these people 
can be dovetailed or tied up and put info a block. My investigations, 
for instance, have shown, as reflected by my testimony, that there is a 
community of interest between these five groups and an overlapping 
of the operations, both in gambling and legitimate businesses, which is 
most difficult to trace out. 

The mere fact of the geographical origination of a particular man 
does not mean that he must be tied up today with the persons located 
in the town he came from. We found that particularly true in the 
Miami area where we have a combination of people connected in legiti- 
mate businesses and who have rackets elsewhere and here, who come 
from St. Paul, Minneapolis, Chicago, Detroit, Cleveland, Youngs- 
town, Akron. Buffalo, Boston, Providence, R. I., New York, Philadel- 
phia, Wasliington, D. C, and practically all of the large towns located 
east of the Mississippi River. And those connections show up in, 
different operations at different times with different individuals. 



164 lORG'ANIZED OKIME' IN ESPTE'R'STAT'E COMMERCE 

For instance, Fred Angersola is shown as the operator of the Grand 
Hotel, the lessee of the Grand Hotel, but his brother, John Angersola, 
is shown as one of the operators of the Wofford Hotel, but the Wofford 
Hotel, in turn, is a mixture of Cleveland people and New York City- 
people, and the persons who took part in gambling games in the Wof- 
ford come from New York, Detroit, Philadelphia, Providence, New 
Jersey, Cleveland, and other towns, and that seems to go through all 
our investigations ; that although there is a common enterprise, which 
might be gambling, nevertheless they have individual interests that 
the people might have, regardless of geographical location. 

In the case of the gambling in Broward County I think it can be 
generally stated that that major gambling has been controlled by a 
group of New York racketeers, to the exclusion of other racketeers 
from Chicago, Detroit, and what not. 

In the Miami area gambling has been controlled in great measure 
by local operators until the last year or two. The legitimate business 
interests, however, overlap from one to another. 

In the Martinique Hotel in Miami Beach, Isadore Blmnenfield, alias 
"Kid Cann" — he is not shown on the chart — has been stated from a 
number of sources as being a large owner of that property. That 
real estate on which the Martinique Hotel is located is owned by a 
corporation. The lots south of that hotel are owned by the same cor- 
poration. One of the principal officers in that corporation is Ed 
Berman of Minneapolis, Minn. Ed Berman is one of three brothers. 
Edward Berman, FBI No. 713989, who was sentenced in the United 
States district court in Oklahoma, to 5 years in the United States 
penitentiary in connection with a Federal charge of conspiracy in 
connection with kidnaping. He was sentenced on October 7, 1933. 

Dave Berman, FBI 52755, has a criminal record which shows a 
number of arrests and at least one case of conviction at the Sing Sing 
Prison in November, November 23, 1927. 

Charles Erving Berman, FBI No. 111205, is also a brother of Ed 
and Dave Berman. Charles Berman goes by the alias of Chick Ber- 
man, and he now has gambling concessions in Miami Beach and was a 
very frequent visitor to the Club Boheme and the Club Green Acres 
in Broward County this past season. 

The Martinique Hotel opened up in the year 1946, immediately 
after the war, as a new hotel. The gambling concession at that hotel 
was taken over by a New Yorker, a man by the name of Julius Cramer, 
alias Julius Steel, alias Julius Berman, and is commonly known in 
Miami Beach by the name of Beeman, Jules Beeman. His criminal 
record goes back to the year 1924 and shows a large number of arrests 
on such charges as grand larceny, felonious assault, and drug 
violations. 

Subsequent to his taking over this gambling concession he was 
brought before the Federal court as a material witness in a special 
inquiry being made of the narcotics operations in this area. Jules 
Beeman has in the last year or so taken over as a partner in the opera- 
tions of a gambling syndicate in Miami Beach known as the Little 
Syndicate. The Little Syndicate has been control led by two gamblers, 
Sammy Clark and Harris Leveson, and in the last year and a half 
Jules B?eman has become one of the principal owners in that gambling 
operation. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 165 

The criminal records and photographs of the people I mentioned 
and the photographs of the hotel are there. 

In searching the real-estate records of Dade County we found that 
Isadore Blumenfeld, along with Edward Berman, and Blumenfeld's 
brothers, Harry and Yiddy Bloom, were associated with the purchase 
of a tremendous amount of property in the Greater Miami area. 
Along with them was a man by the name of Abe Brownstein and his 
wife, Emma, S. I. Bernbaum, and his wife, Birdie Bernbaum, and 
8. W. and Leroy Feldman — all of Minneapolis, Minn. 

As the result of a search of the real-estate records we found that 
Blumenfeld, Berman, and these others either jointly or individually, 
or partially between them, owned the LaBelle Apartments, at 344 
Euclid Avenue, Miami Beach, the Hollingsworth Apartment, at 1641 
Pennsylvania Avenue, Miami Beach, the Tamiami Hotel j at North- 
west Second Avenue and Flagler Street, the Hotel Martinique, two 
undeveloped lots on Byron Avenue between Eighty-fourth and 
Eighty-fifth Streets, Miami Beach, a hotel located south of the Mar- 
tinique Hotel, three ocean-front lots south of that hotel, a parking lot 
at 225 West Flagler Street, Miami, Fla., five lots in the Normandy 
Golf Course subdivision, two lots in the intersection of Michigan Ave- 
nue and Indian Creek Drive, Miami Beach, Fla. 

The ownership of the property is not restricted to the ownership of 
outsiders. Our investigation disclosed, and investigations previously 
made by Melvin Richard, presently city councilman at Miami Beach, 
disclosed that the S & G Syndicate members had purchased a tre- 
mendous amount of ocean-front property, running from the Firestone 
estate, from Forty-third Street, Miami Beach, up to and beyond 
Sixty-second Street, Miami Beach, and this is probably the most ex- 
pensive real estate in the nonbusiness area, nonbusiness real estate in 
the Miami area. 

Among the property owners was Harold Salvey, Charles Friedman, 
Sam Cohen, Jules Levitt and his sister, Virginia Levitt, Sam Fried- 
man, brother of Charles Friedman — all of these of the S & G Syndi- 
cate — Samuel T. Haas, a retired criminal lawyer from Cleveland, Ohio, 
and Thomas J. McGinty, operator of the Mounds Club at Cleveland, 
Ohio. 

Our investigation further disclosed the ownership of a tremendous 
amount of ocean-front property south of Palm Beach, at Lake Worth, 
Fla. We found that the property on which the Palm Beach Ambas- 
sador Hotel is located, at Lake Worth, was owned by Samuel T. Haas. 
That building was built by the Burnstein Bros., a construction com- 
pany of Cleveland, Ohio. 

One of the officers in that construction company was Allard F. Roen, 
and Roen was the recipient of telephone calls that originated on the 
west coast with a large gambling operator who I believe was Mickey 
Cohen. 

Edward P. Strong, who was formerly owner of several race tracks 
in Ohio, and who was a major stockholder in the Detroit race track, 
and who is associated with Arthur B. McBride, of Cleveland, in cer- 
tain business enterprises, also was disclosed as being the owner of a 
large amount of property in the same area in which Sam Haas owned 
property at Palm Beach. 

On May 23, 1950, two suits were filed in the circuit court in Dade 
County, asking for the rezoning of the property located north of the 



166 (ORGANIZED ORIIME IN INTE'RSTATE COMMERCE 

Firestone estate, of which a number of lots are owned by the S & G 
Syndicate. These suits were brought, one by Harold Salvey, a mem- 
ber of the S & G Syndicate, and the other suit by Thomas G. McGinty, 
and the purpose of the suits was to require that the property be opened 
up from residential to hotel and apartment zoning. By so doing the 
owners of that property would increase their profits three to four 
hundred percent, making it possible for the owners to realize a tre- 
mendous profit in case that proj^erty could be rezoned. 

The other legitimate interest of the racket element in this area is 
reflected in the ownership of the Lyric. It is a wired-music organiza- 
tion of which the majority of the stock is controlled by one Bennie 
Kaye, who is carried on a previous chart as the operator of gambling 
at the Club Collins on Collins Avenue, Miami Beach. 

On February 27, 1950, we conducted an investigation to investigate 
and check on the activities of two men who were reported to be in- 
stalling illegally and improperly telephones in various gambling loca- 
tions in the Miami Beach area. As a result of our investigation we 
found two men driving in an automobile who pulled up in the rear of 
Lincoln Road in Miami Beach. These two men contacted the driver 
of a telephone company truck and the truck was opened and the two 
occupants of this car, Melvin Zeigler and Lawrence A. Bridis, driving 
a 1941 Buick club coupe automobile, proceeded to take telephone 
equipment from the truck for a period of 15 or 20 minutes; a tre- 
mendous quantity of equipment. 

The original information of our inquiry was to the effect that these 
men were installing telephones and taking telephones out of the bookie 
establishments in Miami Beach. During the course of the surveillance 
the investigators saw these men go into various hotels to the loca- 
tions of the cabanas with telephone instruments, wires, and various 
other types of telephone equipment and return with other telephone 
instruments of a different nature, which apparently they had 
replaced. 

Since that time we have received information and are now investi- 
gating an agreement for the purchase of certain sound equipment 
which is used for the purpose of taking and transmitting information 
by wire illegally or improperly. This consists of a set whereby it 
can be tied into either a telephone wire or a power line, and com- 
munications can be sent over those lines by carrier current and the 
information picked up within an area of 12 to 15 miles. 

The CiiAiKMAN. Mr. Sullivan, when you reach a place where you 
can pause, I think you had better do so. How much longer do you 
think your testimony will take? 

Mr. SuLLiVxVN. I don't think any longer than 15 minutes. 

The Chairman. I want you to make your full statement but we 
would like to notify some witnesses, if they will be needed this after- 
noon, or as to whether they will be needed. 

A number of witnesses are here under subpena, and all witnesses 
who have been subpenaed and are requestecl to appear before the 
committee must remain in attendance at the hearings unless specifically 
excused. If any of you cannot conveniently be here this afternoon 
you might chock with Mr, Robinson or Mr. Halley of the connnittee 
staff and see wliether it was the intention to have you this afternoon 
or whether you should come back tomorrow; but do not leave unless 
you secure permission to do so. 



ORGANIZED CRIME, IN INTERSTATE COMMERCE 167 

The committee will stand in recess until 2 o'clock, at which time 
we will resume our proceedings promptly. 

AFTERNOON SESSION 

The Chairman. The connnittee will come to order. Mr. Sullivan, 
will you come back to the stand? 

Mr. Sullivan. Yes, sir. 

The Chairman. All right, Mr. Sullivan. Will you proceed with 
your testimony? 

Mr. Sullivan. I have jnst a couple of items here that I would like 
to clear up. I had misplaced a photograph of Sam "Gameboy" 
Miller, and the other is Isadore Blumenfield, alias Kid Cann, and also 
a photograph of an apartment house owned by Herbert Manheim at 
998 Bay Drive, Miami Beach. 

The Chairman. They will be attached with their criminal records. 

Mr. Sullivan. They are already in evidence. 

(Exhibit No. Ill on file ^xith committee.) 

Mr. Sullivan. In connection with the ocean-front lots that I have 
testified about this morning, those lots were valued a year ago at $800 
to $1,000 per front-foot. With the present zoning changes the lots 
are approximately 4 percent less at the present price of $3,750 and 
$4,000 per front-foot. 

I might just conclude by briefly stating that the identities of the 
principal gambling operations in Dade County. The gambling in 
Miami Beach is more or less limited to horse bookmaking and the major 
operations are controlled by the S. & G. Syndicate, of whom the mem- 
bers are Jules Levitt, Sam Cohen, Charles Friedman, Harold Salvey, 
Eddie Rosenbaum, and Harry V. Russell, the latter being a member 
only for about the past 15 months, and he formerly was connected with 
the Capone Syndicate as a partner in the operations of gambling of 
Charles Gioe and Ralph Pierce at the Silver Bar at 400 South S^ate 
Street. 

The Miami Syndicate — an old gambling syndicate — has more or less 
headquartered their operations at Club 86. This club has not been 
open for gambling for the last 2 years. However, some of the 
members have their individual horse-bookmaking operations and the 
identity of the members of Charles Thomas, Merle Yarbrough, Jack 
Friedlander, Cliff Spikes, and Marty Richman. 

The Sunny Isles Casino is located at Sunny Isles. It is run by Ike 
Miller and three members of the S. & G. Syndicate from Miami Beach, 
Charles Friedman, Jules Levitt, and Harold Salvey. This year 
George Bowers was also an owner and I think one or more of the 
other members in previous years dropped out. The Island Club, 
which is also located at Sunny Isles Casino, and is operated by Herbert 
Manheim, Sam Cohen, Sam "Gameboy" Miller, of Cleveland, and 
Jack Friedlander, 

I think that summarizes the general gambling operations — the major 
operations. 

Mr, Halley, Have you to your satisfaction described the operation 
of the S. & G. Syndicate? ^ 

Mr, Sullivan, I haven't described them. I might be able to briefly 
summarize them. 

Mr. Halley. Would you do that in summary form ? 

68958— 50— pt. 1 12 



168 ORGANIZED C'RlIME IN INTERSTATE COMMERCE 

Mr. Sullivan. The S. & G. Syndicate is primarily a bookmaking 
syndicate. It has several headquarters and individual operators who 
come to this area ordinarily negotiate with themselves with the owners 
of hotels and arrange for a price for the gambling concession at the 
hotels. Then arrangements are made with the syndicate for cutting 
up the cost of the concession. The gambling operator pays the hotel 
himself personally whether it is $3,000 or $10,000. The syndicate then 
places its own value on the worth of the gambling concession. 

If the operator has paid $10,000 to the hotelman, the syndicate might 
think it is only worth $7,000 and they will only assume one half of 
what they consider to be a good price. 

In other words, they would assume $3,500, or one-half of $7,000, or 
whatever figure it is worth. Then, that money or obligation of the 
syndicate is not put up in cash. That money is paid off only out of 
profits. The operator then goes into business and arrangements 
are made with the syndicate to book bets through the syndicate, and 
the wire service is arranged for and the purchase of scratch sheets and 
other things. 

A telephone ordinarily is run into the cabanas and bets are taken 
both in the hotels and on the beach. 

Mr. Halley. Who are the members of the S. & G. Syndicate? 

Mr. Sullivan. I have just given them a few minutes ago. 

Mr. Halley. Did you mention Russell as a member? 

Mr. Sullivan. Yes, I did. 

Mr. Halley. When did he become a member ? 

Mr. Sullivan. In the spring of last year — the spring of 1949. 

Mr. Halley. What were the circumstances leading up to Russell's 
becoming a member? 

Mr. Sullivan. Early in February, at the top of the season — the sea- 
son runs from about the 15th of January to about the 5th of March; 
or even later than the 15th of January ; around the 1st of February — 
shortly after the 1st of February 1949 the wire service was suddenly 
shut off in Miami Beach, and then, on subsequent days, it was shut off 
in the rest of the south Florida area, in Broward County, Monroe 
County, and Dade County. With that service being shut off, it prac- 
tically put organized bookmaking out of business. It remained off 
for a period of 10 or 12 days and when it was renewed, Harry Russell 
was brought in as a partner in the S. & G. Syndicate. 

Mr. Halley. He had not appeared as a partner before then ? 

Mr. Sullivan. Not at all. 

Mr. Halley. Have you described the operation of the syndicate in 
Miami to your satisfaction? 

Mr. Sullivan. I think so. The major operations, as I say, were 
in Club 86. Some of the operators had been connected with the opera- 
tions of the Tepee, a night club and gambling place located on South- 
west Eighth Street, which is run off and on during the season generally 
for a number of years. 

The individual members of that syndicate have participated in other 
forms of gambling such as Bolita, numbers, as individuals. This syn- 
dicate also goes under the name of the ABC Co, as the legal entity. 

Mr. Halley. What gambling operations funnel out of Club 86? 

Mr. Sullivan. Normal crap, roulette, chuck-a-luck, bird cage; it is 
a large gambling place. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 169 

Mr. Hallet. Can you state where S. & G. gets its service today ? 

Mr. SuLLivA>r. No ; I can't. 

Mr. Halley. Do yon know whether it does get wire service or 
whether it got wire service during the past winter? 

Mr. Sullivan. I do. 

Mr. Halley. But you do not know where ? 

Mr. Sullivan. No ; I don't. 

Mr. Halley. I have no further questions. 

The Chairman. Senator Hunt ? 

Senator Hunt. This morning, Mr. Sullivan, in your testimony you 
told us of watching the transfer of a very good deal of telephone 
equipment from a telephone truck to a passenger car. Was that trans- 
action reported or was anything done about it ? Was it looked into ? 

Mr. Sullivan. Yes ; we reported it. The two men who investigated 
it reported it to the office of the county solicitor for a determination of 
whether there was evidence enough for prosecution on the question of 
whether they could identify the material that might be found in the 
car of these two men as being telephone company property, and it was 
taken under advisement. He considered making some further investi- 
gation to either search the car or bring the men in for questioning in 
an effort to locate the property, but nothing more was done about it. 

Senator Hunt. You don't know whether the telephone company 
itself was apprised of this situation? 

Mr. Sullivan. Yes ; they were apprised of it. In fact, I talked to 
the officials of the telephone company, and it was agreed that the mat- 
ter would be taken up with the county solicitor's office. 

Senator Hunt. Nothing came of it ? 

Mr. Sullivan. Nothing came of it. 

Senator Hunt. You are probably acquainted with the situation here 
better than any other individual. Would you care to make any kind 
of an estimate of the gambling take in this area in any one season ? 

Mr. Sullivan. That would be difficult. I would say that the gross 
take of the S. & G. Syndicate on Miami Beach alone runs between 
$30,000,000 and $40,000,000 a year, and that their net runs somewhere 
between $4,000,000 and $8,000,000 per year. 

Senator Hunt. And that doesn't include the gambling take? 

Mr. Sullivan. And that doesn't include the gambling houses and 
other gambling operations. 

Senator Hunt. Would you care to make any estimate — just a 
guess — as to what you think the total value of the gambling business 
runs to here in a season, just to give us an idea ? 

Mr. Sullivan. I would say that probably the rest of the gambling 
in the county doesn't amount to any more than what the S. & G. makes ; 
probably rims somewhere around $10,000,000 — $8,000,000 to $10,- 
000,000. 

Senator Hunt. Let's not limit it just to one county; to this area — 
the Miami area. What would you estimate the take to be ? 

Mr. Sullivan. Senator, I really just couldn't do it. I am not fa- 
miliar enough with all their gambling operations in Broward County 
to come to a conclusion. It runs up to quite a large sum of money. 

Senator Hunt. Well, let me just suggest that it may be $25,000,000. 
Now, would you care to, or could you give us, any idea of what part of 
that $25,000,000 goes out of the State, goes into the cities where the 
heads of these gangs are established ? 



170 ORGANIZED ORIIME IX INTERSTATE COMMERCE 

Mr. Sullivan. Well, I think in Broward Comity a large propor- 
tion of it — a fairly large proportion of it — will go north. In Dad'& 
county, a great number of the gambling concessionaires are S. & (t. 
people located in other States like New York and New Jersey wha 
come down here during the season. That money in great measure 
will go out of here. At least their 50 percent share will go out. 
The 50 percent share that the syndicate takes of course will stay here, 
but it would be hard to estimate what proportion of that would leave 
the State and what part would stay in. 

Senator Hunt. Now, to further develop the line of reasoning I 
suggested this morning, do you think gambling is an asset to this 
community ? 

Mr. Sullivan. No, I don't. 

Senator Hunt. Economically? 

Mr. Sullivan. No, I don't. 

Senator Hunt. Wliat do the people think ? 

Mr. Sullivan. I think there is quite a large group of people that 
think that gambling is an asset in that it is an inducement to the 
tourists. 

There is, I think, a rather common and accepted opinion that 
gambling is a question of placing a dollar bet and that is all, and 
the basis upon which the people make up their minds seems to be 
that by doing that, there is no harm in placing a dollar bet, but the 
ramifications of when it becomes highly organized and operated by 
syndicates doesn't seem to reach the average person. 

Senator Hunt. Do these gamblers maintain local bank accounts? 

Mr. Sullivan. Yes ; a great number of them do. I have no way of 
estimating how many do and what percentage doesn't. 

Senator Hunt. Does a crap game bank daily ? 

Mr. Sullivan. It depends upon the game. If it is a large game, 
the banking in great measure is done through an armored truck 
service which acts more or less as the bank. The money is put in 
the armored truck and it is kept overnight and it comes back the next 
day, so the armored truck actually becomes the bank or the place of 
deposit of these funds during the gambling season. 

Senator Hunt. Do you think there is any honest record made of 
the winnings of these various gambling institutions so that the Gov- 
ernment may have a check for income tax purposes ? 

Mr. Sullivan. No, I don't. It is too easy to take money off 
the top. You can figure an operation where a gambling place could 
lose, and they probablv do lose, on an average of $20,000 a night for 
5 nights. That would mean $100,000 that they are in tlie hole. But 
if tliey were to run a lucky night where they might make $75,000, it 
would seem very foolish for a gambling operator who is operating 
outside the law to take that $75,000 and declare it all as a profit when 
he is already $100,000 in tlie hole. There is nothing to stop him 
from putting that $25,000 in his pocket and making an accurate 
return on the rest of the money, and to so instruct his accountanrs 
to make an accurate check on the money or records that he turns 
over to the accountant. 

Senator Hunt. Your crime commission, like the Chicago Crime 
Commission and the otlier crime commissions in the various cities, 
without a question of doubt lias been doing tremendously excellent 
work. 



.ORGANIZED CRIME IN INTERSTATE COMMERCE 171 

Would you care to tell the committee some specific results thtit you 
thiuk you have obtained from your work? 

Mr/ Sullivan. I think that the specific results that we have had 
down here cannot be measured in any suits that were brought, in any 
l)etter law enforcement except the law enforcement that has come about 
throuofh the pressure of public opinion. 

Miami Beach gambling, for instance, last year closed down in June 
and remained closed up until the first of this year, practically tight as 
a drum for the first time in many, many years. Then it opened up on 
a, more or less sneak basis, and as time went on it opened more and 
more and it closed down again around March. The gambling houses 
closed down. 

I believe it was due in great measure to the pressure we put on 
these gambling operations around the middle of February of this 
year, well before the season was over. That is the top of the season. 

We brought an injunction suit against one gambling place after we 
obtained information that a mob from Philadelphia was moving in on 
it — the Turf Club — and we got an injunction against that place. 

The difficulty that we find in attemptin2; to enforce the law is that 
it is an expensive proposition ; where the work of prosecution of 
the case is not taken care of by somebody that is on a payroll; 
where you have to hire attorneys to prosecute the case and you must 
hire witnesses to testify; to make investigations and to appear in 
court, and the thing is dragged out over a long period of time so that 
it handicaps us to the extent that one injunction suit will cost as much 
as $800 or $1,000. That is the difficulty of trying to do something 
by individual operations. 

In great measure we have attempted to arouse public opinion against 
the evils of it because we are a new organization on the detrimental 
effects that it has on the commnnity not only because of the money be- 
ing diverted from legitimate channels but because of the fact that this 
Avidespread gambling is an inducement to these racketeers to come 
down and invest some of that money in these gambling houses and 
gambling operations and that money is very difficult to trace. 

We know that the result of it is that the money does go into these 
gambling operations and we find ourselves with a tremendously large 
criminal population, and we think it is bad on the community b?cause 
some of the money passes from the illegitimate channels into the 
legitimate trade in the purchase of hotels and different companies and 
operations so that after they are here for a while, it is difficult to find 
out who owns what or who you are dealing with. 

So, in great measure, our operations have been directed to ap])ealing 
to the people in arousing an interest on the part of the public to 
demand of the public officials that they enforce the law. 

Senator Hunt. One more question, Mr. Sullivan. Greater Miami 
here has a project that you have been working on for a great many 
years — an educational, cultural, and trade center — a sort of continuous 
exposition that they are looking forward to and have been working 
on, with the possible expenditure in lay-out of grounds and buildings 
and some sort such as that of as much as $60,000,000. It is to encom- 
pass a trade center and an educational center and a cultural center 
for the Western Hemisphere. 

Do you think the reputation that Miami is gaining by virtue of 
this gangster headquarters in wintertime being perhaps the outstand- 



172 ORGANIZED CRIME' EST INTEKSTATE COMMERCE 

ing gambling area of the States today will work to the disadvantage 
of that greater Miami project that all Miami is looking forward to ? 

Mr, Sullivan. I certainly do. I think it has an effect upon the 
investment of any money in this area, particularly where it gets to a 
point where there is a possibility of the racket element obtaining 
political control through bribery and corruption and what not of our 
Government, because legitimate businessmen don't like to invest 
money, as you know, in any area where their investment is not secured 
by established law and order. 

Senator Hunt. I think that is all. 

The Chairman. You spoke of the Miami Crime Commission em- 
ploying attorneys to prosecute cases against these criminals; is that 
correct ? 

Mr. Sullivan. Injunction suits. 

The Chairman. Injunctions. How about the regular prosecuting 
attorney here in Dade County ? Do they prosecute the suits against 
these people? 

Mr. Sullivan. Very rarely; that is, of any gambling operation of 
any size. 

The Chairman. Have you turned information over to them, and 
what happened to the information that you turned over to them, if 
you have? 

Mr. Sullivan. Senator, the operations of these gambling places 
are so well known down here that it is a matter of common knowledge. 
It is practically reported in the press that this gambling place is 
running wide open and the next gambling place is running wide open. 
It is not a question of sneak operations. It is just common knowl- 
edge, and the diti'erent gambling places appeal to different classes of 
clientele. Some of the larger places have a plush clientele. 

The Chairman. I know if you don't live here you can't be here 
but 30 minutes and make any inquii*y when the season is on without 
being told about all of these places. 

What is the local prosecuting attorney doing or what has he done to 
close them up ? 

Mr. Sullivan. There has been no particular action taken locally. 

The Chairman. No particular action. What special action or any 
action ? 

Mr. Sullivan. No action that I know of to close them down. 

The Chairman. How about the sheriff ? What is his responsibility 
in that matter ? 

Mr. Sullivan. The sheriff has a responsibility. 

The Chairman. Is it against the laws of the State of Florida to 
have these open gambling places ? 

Mr. Sullivan. Yes. 

The Chairman. What does he do about it ? 

Mr. Sullivan. Nothing particularly. 

The Chairman. Why? Don't you give him a lot of information? 

Mr. Sullivan. The information, Senator, is already there. Every- 
body knows about it. 

The Chairman. Have you heard of him closing any of them around 
in Miami or Miami Beach ? 

Mr. Sullivan. They close them doAvn occasionally when something 
happens. For instance, the Governor was down here in February of 
this year and he appealed then, after going back to Tallahassee, to all 



X)RGANIZED CRIME' IN INTERSTATE COMMERCE 173 

of the sheriffs of the State to enforce the gambling laws and every- 
thing closed down. There was no difficulty in closing them down. 

The Chairman. For how long did they close down '^ 

Mr. Sullivan. They were closed down for the rest of the season. 
That was around the middle of February. 

The Chairman. Mr. Sullivan, the committee appreciates the fact 
that you have had a great deal of experience in this kind of matter in 
many parts of the United States. What Federal legislation do you 
recommend? What do you think the Federal Government can or 
should do to help local law-enforcement officer or State prosecuting 
attorneys with problems like you have here ? 

Mr. Sullivan. I think first of all that obviously there should be a 
much greater tightening of the enforcement of the internal-revenue 
laws and that the settlement of income-tax claims against known rack- 
eteers should be made very, very tight. I believe that the present law 
that we have on the statute books on income tax, if strictly enforced, 
Avould put a lot of these people in the penitentiary. 

Secondly, there should be some obvious control over the transmission 
of information that does not appear to be censorship. 

There should be, I believe, some control over gambling and race- 
track-information transmission, and then I believe also that there 
should be some thought given to the transportation of funds obtained 
by gambling operators locally in interstate commerce and the invest- 
ment of those funds in other States. I don't know how it can be done, 
but we find ourselves in this area, like it was mentioned this morning 
in testimony, that the question is, 'W^hy can't the law be enforced?" 

We are confronted here, the average citizen is, with the fact that 
there is a tremendous quantity of money that pours in here and goes 
into the gambling rackets and when people run for ofhce down here, 
today, it means every candidate must be able, in order to compete with 
other candidates, to put up tremendous sums of money to have any 
chance at all of winning. The only people that seem to be interested 
in investing in a candidate's chances for election are the fellows that 
are running the rackets. The average legitimate businessman won't 
put up a dime. So, the result is that the good will of the people that 
run the rackets is sought by candidates as the only means whereby a 
man can be assured of election. I think the conditions here may be a 
little bit different than in other towns because of the vast sums of 
money that inure to the benefit of the racket people engaged in gam- 
bling in this area. 

The Chairman. In your statement, I know you don't mean to refer 
to all of the condidates who are elected, do you ? 

Mr. Sullivan. No. 

The Chairman. I know that there are a good number of honest 
public officials in this section, and you referred to some of them? 

Mr. Sullivan. That is right. I don't mean every candidate, but I 
mean that the man who is considering whether he should run for office 
or not, must always consider whether he will take a chance and try to 
run for office without the benefit of the money that the other candi- 
dates have, if he refuses to take money from the rackets. 

The Chairman. As a result of the work of the crime commission 
and the increased interest on the part of some of the officials and the 
people, and with a greater appreciation of the tremendous evil over a 
Nation-wide basis as to the kind of thing that has been going on here, 



174 ORGANIZED CR3ME IN INTERSTATE COMMERCE 

do you see any evidence of an awakening of responsibility on the part 
of the people doing something about this problem ? 

Mr. Sullivan. I think there is a much greater civic consciousness 
today than there was a year and a half ago; much greater. 

The Chairman. I think one trouble sometimes is that the person 
who makes a $2 bet or occasionally engage in some such small activity 
may not appreciate the fact that when that is multiplied a million 
times, it has a corrupting influence on government all over the country, 
and that it becomes a very serious problem and that is what this com- 
mittee is interested in. 

Mr. Sullivan, we appreciate your fine work. 

I believe Senator Hunt has another word. 

Senator Hunt. Mr. Sullivan, I wanted to get your reaction to this 
situation. 

We have noticed in some of the evidence that has been submitted to 
us that there are income-tax returns where local gamblers make large, 
generous, and many contributions to local charities; to the Red Cross, 
to the Boy and Girl Scouts, polio campaigns, the cancer drive. All 
of those various organizations seem to accept this blood money as a 
contribution. Don't you think that these organizations probably 
would be — would it not be better for the community if they wouldn't 
allow these gamblers to buy public opinion or buy the editorial page ? 
I don't mean that literally as far as the papers are concerned, but just 
that expense; wouldn't it be better for the local people to lay off 
soliciting these gamblers for those contributions, for naturally when 
those gamblers make such contributions, they Iniow what they are 
doing. They are buying public opinion. I want your comments on 
that. 

Mr. Sullivan. Undoubtedly that is true, because the contributions 
I'un up into very large sums of money, and, of course, that is a part 
of the public relations and more or less can be written off at the top 
as a deductible item, but the effect on the community, of course, is that 
it leaves with the public that these organizations and the members 
of these organizations the feeling, "Well, that is a good group be- 
cause they are supporting our worthy enterprise and our endeavors 
and our aims," and it certainly has a bad effect. And, of course, along 
with that money or income that is derived from gambling that goes to 
the charitable enterprise, there is more money that goes into the 
investments in the political candidates for office, and that also has 
an effect on the community directly. 

The Chairman. Of course, the answer is, it would be better to get 
rid of them and leave all this money in the hands of the decent people 
so that they could give it to charities. 

Mr. Sullivan. Yes, sir. 

The Chairman. Thank you, Mr. Sullivan. We will be calling on 
you some more. 

I think Mr. S. M. Perkins has a record to put in the files. Is Mr. 
Perkins here? 

Come around, Mr. Perkins. 

TESTIMONY OF S. M. PERKINS, ACCOUNTANT 

The Chairman. Mr. Poi'kins, do you solenmly swear that the testi- 
mony you will give this committee will be the whole truth and nothing 
but the truth, so help you God? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 175 

]\fr. Perkins. I do. 

Tlie Chairman. All right, Mr. Halley. 

Mr. Halley. Wliat is your address, Mr. Perkins ? 

Mr. Perkins. My home address is 340 Candia, Coral Gables, Fla. 

Mr. Halley. "Wliat is j-our business address? 

Mr. Perkins. 505 First National Bank Building, Miami, Fla. 

Mr. Halley. What is your business? 

Mr. Perkins. My business is public bookkeeping and income-tax 
work. 

Mr. Halley. Were you served with a subpena of this committee to 
produce certain records? 

Mr. Perkins. I was. 

Mr. Halley. Pursuant to that subpena, have you produced certain 
records ? 

Mr. Perkins. I brought what records I have. 

Mr. Halley. W^ould you state what records you have produced and 
give them to the committee at this time? 

Mr. Perkins. This subpena called for a great lot of stuff with 
which I have no connection whatever. The only work I do that 
is connected with the S. & G. Syndicate is Charles Friedman's and 
his brother Sam. 

Mr. Halley. What work do you do for Charles Friedman ? 

Mr. Perkins. I keep the niglit-club books and his personal books. 

Mr. Halley. What work do you do for Sam Friedman ? 

Mr. Perkins. He is Charles' brother and they are partners. 

Mr. Halley. You keep the night club and personal books for both 
Charles Friedman and Sam Friedman? 

Mr. Perkins. Yes ; Charles and Sam. 

Mr. Halley. Have you, pursuant to subpena, brought all of the 
books and records in your possession relating to Charles Friedman? 

Mr. Perkins. I think so. 

Mr. Halley. Will you produce them at this time? 

Mr. Perkins. The books* are in the back of the room, and tlie can- 
celed checks. 

For the information of the committee I don't know but two of the 
people connected with the S. & G. I have never been in one of their 
bookie establishments and I have never been in their offices. I have 
been living here in Miami about 22 years, and I think I have done 
Charlie's books and Sam's for about 15 years during that time. The 
only figures I have are just Charles' and Sam's figures on the night 
club. 

Mr. Halley. Will you now produce the books and records that you 
do have relating to Charles and Sam Friedman and identify them 
as you produce them ? 

Mr. Perkins. Here is a ledger called "general ledger." 

The Chairman. Let that be made an exhibit to your testimon3^ 
That will be exhibit Xo. 116. (Later returned to witness after analy- 
sis by committee. ) 

Mr. Halley. Is that Charles and Sam together ? 

Mr. Perkins. That is Charles and Sam. They trade under the 
name of Charlie's Inn. That is a night club. 

Mr. Halley. Charlie's Inn ? 

Mr. Perkins. A night club ; yes. This is the journal. 



176 ORGANIZED ORffME IN INTEKSTATiE COMMERCE 

The Chairman. The journal will be made exhibit No. 117. (Later 
returned to witness.) 

Mr. Perkins. And this is the canceled checks for the last — I think 
they go back to January 1936 and I have them here through 1949, 
and the 1950's are in my office. I didn't think you were that far down. 

The Chairman. Mr. Perkins, it may be we will want to see the 
1950 checks. 

Mr. Perkins. You can get them in 20 minutes if you want them. 

The Chairman. I think it would be well if you would bring them 
over and the auditors of the committee will go over them with you. 

Mr. Perkins. All right. I hope to be able to do that tomorrow 
because I have to do some payroll work this afternoon. 

Mr. Halley. Do you have with you copies of income-tax returns 
and work sheets ? 

Mr. Perkins. The accountants have those files and I didn't bring 
them. This bunch of stuff here is from one accountant's office and 
these two here are in another, and they have my inco&ie-tax files. 

Mr. Halley. Wliich accounts are they? Will you name them? 

Mr. Perkins. Joseph A. Post. 

Mr. Halley. What is his address ? 

Mr. Perkins. Certified public accountant. 

The Chairman. Let's get this first. You are entitled to get copies 
of the income-tax returns ? 

Mr. Perkins. I can get them. 

The Chairman. Will you bring them this afternoon ? 

Mr. Perkins. Yes. I would like to bring them in the morning. I 
don't have time to get back. 

Tlie Chairman. That is all right. 

Mr, Perkins Two of the books are all at Blumin & Eoberts' office, 
420 Lincoln Road, Miami Beach. They seem to be working on the 
income-tax part of it in connection with an income-tax settlement 
with the Government. 

Mr. Halley. After the records in your own possession have been 
produced and the records in tlie possession of Joseph A. Post and the 
records in the possession of Blumin & Eoberts have been produced, 
will the committee then have all of the records of which you know 
pertaining to the Friedmans ? 

Mr. Perkins. They will. 

Mr. Halley. Now, will you deliver to the committee the remaining 
records that you have here ? 

Mr. Perkins. Here is the journal from January 2, 1946. They have 
two bank accounts. One is with the Mercantile National Bank, on 
the beach, and the other is the First National Bank, on Miam* Beach. 
These are the monthly bank statements and the canceled checks cover- 
ing the same period. 

The Chairman. They will be identified as exhibit No. 118, the can- 
celed checks. (Later returned to witness.) 

Mr. Perkins. Here are statements from the banks for the year 
1949. 

The Chairman. Let them be identified as exhibit No. 119. (Later 
returned to witness.) 

Mr. Halley. Is that all you have, Mr. Perkins ? 

Mr. Perkins. That is all I have. 



ORGANIZE I> CRIME IN INTERSTATE COMMERCE 177 

The Chairman. Mr. Perkins, you will remain under subpena in the 
e\ent the committee wants to question you about any of these records. 
Mr. Peekins. All right. 

The Chairman. We have no questions to ask of you at this time. 
Mr. Perkins. Thank you. 

TESTIMONY OF RICHARD ERVIN, ATTORNEY GENERAL, STATE 
or FLORIDA, ACCOMPANIED BY MESSRS. GASQUE, TONI, AND 
HORTON 

Tlie Chairman. Do you solemnly swear that the testimony you will 
give this committee will be the whole truth and nothing but the truth, 
so help you God ? 

]Mr. Ervin. I do. 

The Chairman. Mr. Ervin, the committee appreciates your attend- 
ance here. Let me say that the chairman of the committee is ac- 
quainted with Mr. George Owen who is one of your assistants m 
the States' attorney's office, in the office of the attorney general, I 
believe. 

Mr. Ervin. That is correct. 

The Chairman. Who has the good fortune to come from the State 
of Tennessee. The chairman has had an opportunity over the course 
of 8 or 9 months now of having several conferences with Mr. Owen. 
Now, before we proceed, I want to express our appreciation to him 
for his help and also for his suggestions, and we want to thank you 
for your suggestions and cooperation that you have given us. 

Mr. Ervin. Thank you, Senator. George Owen is a very fine lawyer 
who served in the Navy during the war in the intelligence division, 
and prior to that was a probation officer under Federal Judge Long. 

The Chairman. Mr. Ervin, do you have some of your staff whom 
you would like to have come up with you ? 

Mr. Ervin. I have Mr. Gasque and Mr. Toni. Mr. Horton will be 
in a little later. He had a court hearing at 2 : 30 and lie will be here 
in a moment. 

The Chairman. This is Mr. Gasque here ? 

Mr. Ervin. Yes, sir. 

The Chairman, liring them around and have them sit with you. 

Gentlemen, in case you have something to do or say, under the rules 
of our committee, I will ask you to be sworn. 

Do you solemnly swear that the testimony you are to give this com- 
mittee will be the whole truth and nothing but the truth, so help you 
God? 

Mr. Gasque. I do. 

Mr. Toni. I do. 

Mr. HoRTON. r do. 

Mr. Halley. Mr. Ervin, as attorney general of the State of Florida, 
you are familiar with the race wire service which has been operating 
in the State of Florida for the past several years ? 

Mr. Ervin. Yes, sir; I am, Mr. Halley. 

Mr. Halley. In fact, you testified on previous occasions Avith rela- 
tion to it ? 

Mr. Ervin. Yes, sir ; at the hearing of the subcommittee, and Sena- 
tor Hunt was there at the time. 



l78 ORGANIZED CRaME IN INTERSTATE COMMERCE 

Mr. Hallet. As you know, the jurisdiction is, in part, the same as 
that committee, but this committee has jurisdiction in connection with 
organized crime operating through the channels of interstate com- 
merce and in testifying here today you may want to broaden your 
testimony within the scope of the relevant testimony before this com- 
mittee. 

Before proceeding, however, would you describe section 550.07 of 
the Florida Statutes of 1941 relating to campaign contributions and 
will you describe the effect thereof^ 

Mr. Ervin. This section of the statutes, Mr. Halley, makes it illegal 
for any race track to contribute to the campaign of any political party 
or any candidate for a State, county, or municipal office. And then it 
provides that the racing commission may revoke the license or permit 
if it is determined that such contributions have been made. 

Mr. Halley. Is the prohibition restricted to race tracks or also to 
persons connected with race ti'acks or controlling race tracks or who 
are officers or stockholders of race tracks ^ 

Mr. Ervin. It also includes those. 

Mr. Halley. In other words, those persons would be prohibited, 
under this statute, from making campaign contributions ; is that right ? 

Mr. Ervin. Yes, sir. 

Mr. Halley. Is there a penal provision, Mr. Attorney General ^ 

Mr. Ervin. I am not familiar with it. I don't believe there is. I 
think the punishment consists in the revocation of a permit. 

Mr. Halley. The permit referring to the permit to operate the race 
track ? 

Mr. Ervin. Yes. 

Mr. Halley. By "race track" do you include horse race tracks ; is 
that correct ? 

Mr. Ervin. This statute from which that section is taken relates to 
horse and dog race tracks. 

Mr. Halley. Horse and dog race tracks ? 

]\Ir. Ervin. That is right. 

Mr. Halley. Now, would you also at this time inform the commit- 
tee and interpret for the committee section 365.02 of the law relating 
to railroads and other regulated utilities? 

Mr. Ervin, Oh, yes. Mr. Halley, that section is the 1949 law that 
banned wire service to bookmakers, and I might add that prior to the 
enactment of that section of the law, the Florida Railroad and public 
utilities commission had no authority to cancel any private wire or 
leased wire because it was being used to furnish bookmaking informa- 
tion. That was a new innovation in our State enactments and started 
(his chain of effort, I think, to shut off the wire service to the book- 
makers. 

I want to add this, if I may: until the people of Miami and others 
who are interested in getting this bookie bill enacted, it wasn't con- 
sidered by State officials other than perhaps the Governor, to use his 
powers in relation to seeing that the laws were faithfully executed to 
enter into the field of local law enforcement. 

I have heard the other testimony here. When I was campaigning, 
I came down to this community and 1 campaigned aggressively and 
I saw numerous people that I see here today. We thouglit it was a 
local problem. I have been attorney there for the State roads depart- 
ment, assistant attorney general, and we hadn't entered into it, but 



(ORGANIZED CRIIME! IN INTERSTATE COMMERCE 179 

when this law was put on the books, I was immediately made a defend- 
ant in a suit to have it declared unconstitutional. The Supreme Coun 
upheld the law. 

Mr. Halley. Could you give the dates ? 

Mr. Ekvin. Yes. The Supreme Court upheld that law on December 
10, 1949. The legislature enacted this law at the regular session in 
May of 19-19. The Supreme Court upheld the validity of this law. 

AVe discussed the matter with our utilities commission and the 
utilities commission pointed out to me that every one of these contracts 
for a private wire passed through my office for investigation and that 
1 had to make a report on it and it was my duty to advise whether or 
not I thought it was legal or illegal. 

So, as a sworn duty, I set up an investigative division in my office. 
I named Assistant Attorney General Toni here, and I secured a former 
investigator for the Governor's office for two or three administrations 
in the past, Mr. Gasque. 

I sent them out to investigate the wire-service contracts. There was 
no trouble, Mr. Halley, in shutting off the service that was furnished 
by the Western Union. That it was a notorious contract w^as clear. 
There were 140 drops, I believe, in south Florida where the wire serv- 
ice was furnished by Western Union. But immediately after the rail- 
road commission canceled out the Western Union wire-service contract, 
that was all part of the Continental Press Service and the other serv- 
ices — Hagerty, Interstate, the News, and the others — we found that 
the bookmakers in this area converted to telephone. They began to 
use long-distance telephones. 

So, in order to make a showing — we felt we had that duty to do — 
we sent Mr. Gasque and Mr. Toni and Mr. Horton here, who is assist- 
ant attorney general in Miami, stationed here all the time, and Mr. 
Owen — they began a drive to try to find out about the telephone serv- 
ice and we did find it, and I testified before your Committee on Com- 
merce that when they knocked out the telegraph service, we found 
that they were using the telephone to call out of the State. 

We think that there is no question but that the Continental Press 
Service is a national wire service. They use the telephone and they 
use any means that is possible to get the information, and we have 
started proceedings to knock out those telephones. It is an inescapable 
duty. 

I think we are doing the best we can and we are cooperating with 
the local enforcement officials, with the crime commission and others 
to do the job. 

I want to commend this committee on what it is doing, too. When 
I got into this phase of law enforcement, I didn't realize the ramifica- 
tions of it. I didn't realize the moral and economic points involved 
in it, but there is no question in my mind, Senator Hunt, but what we 
are having a moral reawakening in this community and in the State. 

When I ran for office, I didn't realize what the implications were. 
I thought that I would sit in Tallahassee and be the State's lawyer 
and I would not have anything in particular to do with local law 
enforcement. 

This law has opened our eyes. We are into it, and I commend this 
committee that it is something that we need here. 

The majority of the people in Miami, I think, sympathize with 
this thing. There are a great many people in the courtroom today 



180 ORGANIZED CRIME IN INTE'RSTAT'E COMMERCE 

that disagree. They have all kinds of arguments. They say, "Why, 
you are just a crusader, a farmer. You have no chance for the enforc- 
ing of the law against gambling." 

They say, too. that people are going to gamble regardless of what 
you may do. They say that it is necessary for the tourist business. 
I think they are mistaken. 

Conditions have gone on here so long as they have that they don't 
realize that there is a moral reawakening in this country, and I think 
Senator Kefauver and Senator McFarland and Senator Hunt realize 
the implications of it, and even we can't stop crime. We can't stop 
traffic violations, but we can make an effort and do the best we can. 
The newspapers are doing their part. The crime commission and 
many good citizens and the people of Miami, I think the majority of 
them, are going to join in this effort. We need the assistance of the 
Federal Government. 

A lot of people say it is not right for the Federal Government to 
encroach on our law enforcement, but the picture is well known about 
the tie-ins of this wire network and all the people who are a part of 
it. They are encroaching on us, and on the morals of our community, 
and we need the help of the Federal Government. 

I think that the bill that your committee put out is a good bill, but 
I don't think it goes far enough. I wish it were more on the order of 
our State law. I wish that we could shut off the rapid results as well 
as the information about betting and the odds and I think, too, that 
some of these legitimate news disseminators ought to join and help 
us in it, and I know that I am going on that and feel that you are not 
particularly interested, but the thing is educational, and I think that 
our law enforcement officers, as Senator Kefauver said the other 
day, many of them are honest and conscientious and they realize that 
the State means business and that the Federal Government means 
business, and that we will get somewhere, and we commend you for the 
effort you are making, and I hope we have a Federal law putting the 
crime commission, the FBI and the others into the field so as to sup- 
plement the effort that is made here in the State. 

Mr. Hallet. Mr. Ervin, in the early part of 1949, was the wire 
service discontinued to the Miami Beach area ? 

Mr. Ervin. It may have been, but it certainly wasn't by reason of 
any action I took or anyone in Tallahassee. I don't know about that. 
The wire service — the telegraph wire service — was cut off sometime 
in December of 1949. 

I have heard testimony here of Mr. Sullivan, and it may have been 
cut off because of some disagreement among the people who have car- 
ried on those operations, but I don't think the men in my office had 
anything to do with it. 

Mr. Halley. Didn't it come to your unofficial attention that in the 
early part of 1949, without any official action, but purely because of 
some dispute among the bookmaking establishments, the wire service 
was cut off? 

Mr. Ervin. Mr. Halley, I did hear that, but I want to confess to 
you that back in the early part of 1949 this business of entering into 
local law enforcement on bookies simply didn't — it wasn't something 
that we were greatly concerned with, and I didn't pay much attention 
to it. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 181 

Mr. Halley. But since then you have learned that it is a serious 
matter of at least State-wide concern? 

Mr. Ervin. Yes ; ^Ye feel that it is, and we follow the policy in our 
legislature that recognizes it as an evil. 

This law was only passed after two scandals. They tried to pass 
it in the 1948 legislature. The scandals that developed there were on 
bribery attempts, and they probably wouldn't have passed it in the 
1949 session except for bribery attempt which was disclosed and 
brought to light, and that may have had a great deal to do with its 
passage. 

Mr. Hallet. I believe you have gone on record as stating that the 
bookmaking and gambling is dominated by syndicates with men in it 
so big that they can bribe and influence public officials ? 

Mr. Ervin. I feel that that is true, Mr. Halley. The profit motive 
in this thing is tremendous, and they naturally have, to protect their 
investment; and, if they can bribe or buy anybody, they naturally 
will do it. 

Mr. Halley. Have you any specific evidence that you could bring 
to the committee's attention at this time relating to those matters ? 

Mr. Ervin. No, sir; I cannot give you an instance of bribery at- 
tempts. I do know, though, that other than those two that I tolcl you 
about in the legislature — I know it was stated many times in the 
newspapers--and I think Senator McFarland stated up there that it 
was recognized here in Florida that there was a purchase of official 
tolerance and because it was so widespread and so notorious and must 
have been — there again, I have no specific evidence on it, but it couldn't 
have been permitted without condonation on the part of some public 
officials. 

Mr. Halley. That is all I have. 

The Chairman. Senator Hunt, do you have any questions ? 

Senator Hunt. No; I don't believe I have any questions, Mr. Chair- 
man, but I should like to compliment the attorney general on his state- 
ment with reference to what effect he feels this racket has on morals 
and the economic effect it has on the locality. 

I would like to make this one observation, Attorney General Ervin : 
Over a long period of years, to the best of my knowledge, the man 
who runs for oftice on a program of good clean law enforcement, arid 
if it is fought on those grounds and those grounds alone, generally 
wins. 

Mr. Ervin. Senator, I hope so. 

Senator Hunt. There are exceptions to every rule. 

Mr. Ervin. That is a chance that I am taking, and I may have 
guessed wrong on it, but I don't feel that I have any alternative. 

In view of the situation, I will state the policy and then what I 
hope is an innate feeling about the subject. 

Senator Hunt. I don't think you have guessed wrong. I think the 
statements that you have made today have been made known through 
the State of Florida through the press, and they have enhanced your 
position no end, Mr. Attorney General. 

The Chairman. Mr. Ervin, let me get this clear now. Prior to 
the passage of this Wire Act, the wire services operated in sending 
the news out so that any bookie could get it and there was no restraint 
on their operation? 

Mr. Ervin. Yes. 



182 lORG'ANIZED CRIME IN INTERSTATE OOMMERCE 

The Chairman. As I understand it, the Wire Act prevents the 
intrastate use of wire services ; is that right? 

Mr. Ervin. That is true. 

The Chairman. After the passage of the act, didn't you have a great 
deal of difficuky about the information being sent to some out-of-State 
place and then coming back on the Continental Wire Service? 

Mr. Ervin. We did. It came back. 

The Chairman. Tell us about that. 

Mr. Ervin. I would like for Mr. Horton to tell you that, if you 
don't mind, Senator. 

I will say this, though: We found that Continental Press Service 
on tracks out of the State as well as tracks in Florida — the Associated 
Press is a subscriber of Continental Press Service, and before the in- 
formation would be sent out by Associated Press to its subscribers, 
flashed back by Associated Press wires would be the Continental Press 
Service, and it would come back in 2 or 3 minutes after races were run 
at practically any track in the country. 

The Chairman. You mean after a race was run, say, at Hialeah? 

Mr. Ervin. Yes. 

The Chairman . The news would get through ? 

Mr. Ervin. It would come back. 

The Chairman. And come back on wire service within 2 or 3 min- 
utes after a race would be run? 

Mr. Ervin. That is right. 

The Chairman. Do you feel that that was beyond your jurisdiction 
because it was an interstate transaction and there was nothing you 
could do about it? 

Mr. Ervin. I felt there was nothing we could do about it, Senator, 
and there is no way to approach it unless we get Federal legislation. 
Assuming that we do get the cooperation of the legitimate news serv- 
ices and they cut it off and delay it a few minutes, anyone can call 
Valdosta, Ga. ; or call New Orleans, La., and get the race results from 
any subscriber that may be on Associated Press' or Continental Press' 
line or anyone. 

This system of getting information is so widespread that all you 
need is a long-distance line to pick it up. 

We made a raid in Jacksonville only a few clays ago and we found 
that they were calling Minneapolis, Minn. ; Valdosta, Ga. ; Augusta, 
Ga. ; and Bristol, Tenn. 

The Chairman. For your information, that Bristol is on the State 
line between Tennessee and Virginia. The telephone company may 
be in Tennessee, but I am sure the information came from across the 
line in the other State. [Laughter.] 

You have examined the police power to cope with these transac- 
tions and you have determined after an exhaustive examination that 
you have no riglit to interfere with interstate communications ? 

Mr. Ervin. That is right. 

The Chairman. By State statute? 

Mr. Ervin. That is right. 

The Chairman. Mr. Ervin, you spoke of the 1947 legislature and 
the public scandal of trying to bribe a member of t}\e legislature to 
use influence to prevent the passage of this Wire Service Act? 

Mr. Ervin. Yes. 



ORGANIZED CRIIME IN INTERSTATE COMMERCE 183 

The CiiAiRMAX. And it was defeated in that legislature? 

Mr. Ervin. Yes. 

The Chairman. Who was it that was trying to stop the passage of 
the legislation? 

Mr. E'rvix. Senator, I don't know who the parties were that sup- 
plied the money, but I do know that two members of the House of 
Kepresentatives have publicly stated that another member of the 
House of Representatives olfered them a bribe to vote against the bill. 

The Chairman, Was it a very large sum of money, too? 

Mr. Ervin. No, sir; it was not. I think it was only $500. At the 
1'.>4U legislature, it was supposed to have gone up to $2,000. 

Tlie Chairman. Who brought the injunction suit against the State 
for testing the constitutionality of this law ? 

Mr. Ervin. That was brought by Walter M. Hagerty, John Mc- 
Henry, a corporation by the name of Interstate News Service, and H. 
E Bilson Radio Program Service. 

The Chairman. What sort of cooperation have you gotten out of 
the telephone company in Florida in your efforts to prevent tele- 
phones from being in places where the users can telephone information 
out immediately ? 

]Mr. Ervin. We are getting better cooperation the farther we go 
along. 

The Chairman. What do you mean by you "are getting better co- 
operation"? 

Mr. Ervin. They would want to give us no information about tele- 
])hones nor would they let us go in and check with them on phones 
that were listed as possible phones of bookmakers. 

After we got further along with it and they saw that we meant 
business, they began to allow us to check their toll records and to give 
us information when we found a phone and gave them a number 
for it. ^ 

They said they didn't want to get into the police end of it. They 
didn't want to assume that responsibility. 

We are doing much better, and I would not want to be critical of 
them in view of the fact that they have helped us in the last few 
months. 

The Chairman. Can you or some of your deputies or assistants 
tell about telephones in very strange places that appeared around 
race tracks here in Florida? 

Mr. Ervin. Mr, Toni, can you tell us ? 

^Ir. ToNi. The most typical installation that has been depended upon 
in the past and up until this season was known as Sunshine Park in 
a shack right across from the race track, where they had a turret 
ari'angement on top of the shack and a view of the turf board where 
you could read the turf board with a pair of binoculars. 

They had telephone connections there. We found two men there 
who admitted or stated that they were employees of the Continental 
Press Service. We found 

The Chairman. Will j^ou furnish their names for the record — their 
names and addresses? 

Mr. ToNi. Alfred Olsen 

The Chairman. Give us what you have now, whatever you have 
now, and you can give us the rest later. 

68958 — 50— pt. 1 13 



184 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. ToNi. That particular location was on the Continental wire 
circuit before the Western Union wire was canceled out. We found 
the fuse box in there. Then there were — we found similar installations 
around Tropical, Hialeah, and Gulf Stream, where there were drops 
on the old Continental race-wire line. 

The Chairman. Did j^ou find those people worked for Conti- 
nental also? 

Mr. ToNi. No; we were unable to catch them, but they were oper- 
ating at those places. They had abandoned the known«look-out places 
and had set up telephone connections in other locations. 

The Chairman. Are there any other })laces — aspects, rather, of 
this matter — that }■ on can tell us about, Mi-. Toni ? 

Mr. Toni. I think Mr. Horton can describe the leased-wire circuits 
from Baltimore which ran into the State to Key West and the circuits 
which went out of the State on which the Florida race-track infor- 
mation was relayed better than I can. 

The Chairman. Thank you very much, ]Slr. Toni. Xow. ^Ir. 
Horton, will you tell us about your kno>v ledge of the matter ? 

Mr. Horton. Senator, I don't know whether you are interested in 
all this, but it is a phase I think you might be interested in. 

Up until the set-up until December 1049 there was a circuit oper- 
ated by the Western Union Telegraph Co. Xow. to briefly state this, 
the Radio Program Service of 621 Munsey Building, Baltimore. Md., 
had a connection with the Intrastate News Service, which had its ori- 
gin in Florida, in Jacksonville. The Radio Program Service was 
operated under the management of one H. E. Bilson. I am speaking 
now with copies of the contracts filed with the public-utilities com- 
mission before me, which H. E. Bilson signed as an officer of the Radio 
Progi'am Service. That tied the link of Radio Program Service out 
of Baltimore to Florida. 

The Intrastate News Service of which we have contracts here also 
applied to the Western Union Telegraph Co. and was furnished leased- 
wire service extending from Jacksonville into Key West. 

Now, when those circuits went out, why, the only other alternative, 
I presume, was for the people who wanted that type of information to 
obtain it by telephone. In the course of our investigation, after the 
wire services went out, we found that some of these known drops on 
the circuit of the Intrastate News which was also on Radio Program 
Service in Baltimore were then calling the number of Radio Progi-am 
Service in Baltimore, the same identical group. 

It is a matter of public record in the Federal Reporter system the 
disclosure made by McBride in the case involving the Western Union 
Telegraph Co. in California. It is a circuit court of appeals decision 
in the ninth circuit decided in 1949 in which McBride made the admis- 
sion he was a furnisher of information to the group in the Munsey 
Building in Baltimore, Md. That is the place where the southern 
bookmaker operators obtain their information on races. 

There is a tie-up shown in these contracts at the time of the wire 
service with an address in New Orleans. Now, that address in New 
Orleans has been supplemented since the wire service is out with tele- 
{)hone service and these points of interest in Florida now call either 
New Orleans or they call Baltimore or they call Chicago directly. And, 
we found in the course of our investigation that direct calls are made 
to Continental Press Service in Chicatro. 



ORGANIZED CRIME IN INTERSTATE CORIMERCE 185 

That is all I liaA'e that I Ijelicve would be of direct interest to the 
committee. 

The Chairman. Mr. Horton, do you have copies of the various con- 
tracts and documents that can be turned over to the committee? 

Mr. HoRTON. These are the only copies that I have. I will be glad 
to have some copies made and furnish them to the committee. 

The Chairman. If you will, I will appreciate it. Do you then as a 
specialist in this type of thing join in the Attorney General's recom- 
mendation that some method is needed to supplement the State laws 
by the Federal control of communications if you are going to keep this 
information from being used for gambling purposes? 

jNfi'. HoRTON. Senator, I am convinced that the Federal Government 
will have to in some way supplement the State authority beyond its 
borders because we have no authority over calls that originate in the 
State going outside of the State or calls that originate in other 
States coming in here and we feel that the Federal Government is the 
only resort we have to stop that practice. 

The Chairman. Any questions, Senator Hunt? 

Senator Hunt. No. 

The Chairman. Mr. Halley ? 

Mr. Hailey. Xone of this witness, but with the permission of the 
committee I would like to ask a few questions of Mr. Gasque. 

Tlie Chairman. All right. 

iNIr. Halley. Mr. Gasque, were you in the court while Dan Sullivan 
testified? 

Mr. Gasque. Yes, sir. 

Mr. Halley. You may recall that one of the persons about wdioni 
he testified was Samuel Bratt 

Mr. Gasque. Yes, sir. 

Mr. Halley. Who was active in the operation of the Colonial Iniii 
and Green Acres. 

Mr. Gasque. Yes, sir. 

^Ir. Halley. Do you know :Mr. Bratt ? 

Mr. Gasque. Yes, sir. 

Mr. Halley. Have you had aii}^ dealings with him ? 

Mr. Gasque. No, sir. 

Mr. Halley. "Would you describe the nature of your knowledge of 
and acquaintance with Mr. Bratt? 

Mr, Gasque. I will be glad to. Back 7 or 8 years ago Mr. Bratt's 
attorney, who is Senator John E, Mathews, from Jacksonville, who 
is my senator from my home-town county, introduced me to jNIr. Bratt 
in the halls of the legislature in Tallahassee. Since that time I have 
in the course of my work through south Florida as an investigator 
for the Governor's office, and recently for the attorney general's office, 
come in contact with Mr. Bratt, I have gone to Mr, Bratt at times 
down here knowing that he had to do with the wire service and got 
information from him on people that I was checking on. He would 
very graciously give me that and I think on several occasions he has 
called me long distance from his home to mine in Jacksonville and on 
some occasions he would deliver a message like this: He was unable 
to contact Mr, Mathews and he would like for me to contact him anil 
let him know that he would be in Jacksonville the next day on such and 
such a plane and would like to see him in his office and that he was un- 
able to set him. 



186 ORGANIZED CHIME IX IXTE'RSTATE OOMIVjERC'E 

I had the misfortune, Mr. Halley. in 1947 to have a cancer of this 
eye and I had spent several months in the hospital, in hospitals. Mr. 
Bratt, I presume, knowing the position I held with the Government, 
thought it would be a nice thing to call and make inquiry as to how I 
was. Of course, I was in the hospital and wasn't at home, but he would 
call and inquire from Mrs. Gasque. 

So far as business connections in any way are concerned I know him 
no more than I know Costello, Ericson, the Capone boy, the McBride 
boy, and all these other characters whose names have l)een mentioned, 
and also Mr. Cohen. I know Costello when I see him. I know Ericson 
when I see him. I have spoken to him in Miami, in some places in 
Miami in the last 16 years that I have been traveling the State. 

I would like to say this much, that I went to work in Tallahassee 
under Governor Scholtz. I worked under his administration and then 
followed 4 years inider Governor Cone and 4 years under Holland, now 
United States Senator, and 4 years under the former Governor pre- 
ceding. In those years I have come in contact with lots and lots of 
criminals in my work and I always have felt that whatever little suc- 
cess I might have had in my work is due because I haven't tried to 
be hard-boiled or be too high-hatted to speak to anybody regardless 
of how low he might be. 

As far as any connections in business with him are concerned I 
never had any. We knew he had no interest in bookmaking as far as 
the bookie business is concerned. As far as we knew he would deal with 
Mr. Toni and myself and on different occasions we would go to him and 
ask him for certain information this last winter. He would find it 
out for us and if we happened to be gone he would call to Jacksonville 
and Tallahassee to locate us and give us whatever information we 
wanted. 

That is the entire nature of my connection with Mr. Bratt. 

Mr. Halley. Sir, in the early part of 1950 did you have occasion 
to make an official investigation, to make official investigations in the 
Miami area? 

Mr. Gasque. Yes, sir. 

Mr, Halley. You were staying at the El Comodoro Hotel ? 

Mr, Gasque. Yes, sir. 

Mr. Halley. Did you have a number of telephone calls from Mr. 
Bratt during that period ? 

Mr. Gasque. I wouldn't say a number. I wouldn't know how many. 
He called several times to Mr. Toni and myself. He tried to get hold 
of one. 

Mr. Halley. Well, did Mr. Bratt call as often as four times in a 
single day at the El Comodoro ? 

Mr. Gasque. I don't recall if he did, Mr. Halley. 

Mr. Halley. If he did would you be surprised ? 

Mr. Gasque. No, sir ; I would not. 

Mr. Haixey. Could you recall at this time the subject matter of 
the calls from Mr. Bratt? 

Mr. Gasque. He was giving us information on what we had asked 
him to check on for us. 

Mr. Halley. What information was he giving? 

Mr. Gasque. About bookmaking over there in Broward County 
where we cleaned the county up. 



ORGANIZED CRJME: IN INTERSTATE COMMERCE 187 

^Ir. Hali>ey. Did you make memoiuiida about that information 
and put it in your official files? 

Mr. Gasque. No, sir. I just made notes of it and put it in my 
pocket. 

Mr. Hallet. You never filed reports about it with your office? 

Mr. Gasque. No, sir; not where we got the information from Mr. 
Bratt. 

Mr. Halley. I have no further questions at this time, Mr. Chairman. 

The Chairman. All right, sir. Mr. Ervin, there was one other 
question I wanted to ask you. Where does the responsibility for the 
jn-osecution of criminal violations under the State law rest here in 
Dade County and Broward County? 

Mr. Ervin. Senator, there has been a Supreme Court decision on 
that on a case brought by my predecessor, Mr. Watson. I will give 
you the citation. In that case the Court said there is a line of demarca- 
tion between the duties of the attorney general and the State attorneys. 

The State attorneys and the county solicitors they have the discre- 
1 ion to determine whether to prosecute or not prosecute for a local law 
\ iolation. They are elected officials and they determine from the 
facts whether or not they should prosecute. 

Our office assists them and we have criminal appeals. If they call 
on us to brief a question we do it, but we have no control over their 
discretion of their right to prosecute or not to prosecute. 

The Chairman. You mean, if the law is bein^ flagrantly violated 
on its face, or, if the laws are being flagrantly violated on their face 
Aou have no discretion about the matter in doing anything about it? 

]Mr. Ervin. Senator, I cannot control their discretion as to whether 
or not they shall prosecute. Wherever we have a complaint regarding 
a local law violation we transmit that to the State attorney or the 
county solicitor and ask them to investigate it and determine whether 
or not prosecution is warranted. 

The Chairman. Have you done that ■ 

]Mr. Ervin. We have done that. 

The Chairman. In Broward and Dade Counties? 

]Mr. Ervin. You mean, with regard to this crime situation ? 

The Chairman. Yes ; that is right. 

Mr. Ervin. Senator, I don't recall having had a request of that 
kind that we transmitted to those officials either in Broward County 
or Dade County. We consulted with them about prosecution of these 
cases. 

You see, where we made a raid and find someone 

The Chairman. Of course, Mr. Ervin, all you need to do is read 
the newspapers to know what is going on here. 

Mr. Ervin. That is true. 

The Chairman. Well, whose responsibility is it to prosecute locally ? 

Mr. Ervin. It is the responsibility of the local prosecution office. 

The CiiAiRMAN. Do you know why it hasn't been done ? 

Mr. ER^^N. I think that it probably goes back to the customs of the 
people here. There has been in this area a so-called liberal policy. 
They didn't want to crack down on certain types of gambling. I sup- 
pose much of it grew out of that. Senator. 

Mr. HoRTON. Senator, may I just make an observation on behalf 
of Attorney General Ervin, that we have signed affidavits as to the 
basis of the complaints in Dade County and in Broward County in 



188 ORGANIZED ORUME IN INTERSTATE COMMERCE 

connection with our investigation of bookmaking operations and some 
of these cases, as far as I know, are under prosecution now. 

I don't know the results of any particular case that I can tell you 
now, but we have affidavits of violations in these two counties that have 
been brought to the attention of the local law-enforcement officers and 
the results, and complaints have been filed against those people. 

I don't think Mr. Ervin knows of that specifically. 

The Chairman. What complaints have been filed ? Do vou know, 
Mr. Horton? 

Mr. HoRTON. Well, in particular, there was a search warrant and a 
warrant for arrest issued against a bookmaking operation at the 
Saxony Hotel in Miami Beach. That was based on information 
which we had obtained through other local law enforcement officers 
who cooperated with us and the sheriff's office of Dade County served 
fi warrant and as a basis of that complaint arrests were made, charges 
were made against the individuals who were found in that bookmaking 
establishment. 

The Chairman. How about the owners of some of these bookmaking 
establishments, the big boys, the S. & G. Syndicate and the Ericsons, 
all those fellows that you have seen on the charts here ? 

Mr. HoRTON. Senator, they are conspicuous by their absence usually 
in places that you have a warrant for search and arrest, and naturally 
so because they have their lieutenants or employees operating it and 
it is very difficult to find them. 

The Chairman. Do you have a conspiracy law in the State of 
Florida, conspiracy to violate a criminal law ? 

Mr. Horton. Yes, sir; we do. 

The Chairman. If they put finances into the operation, keep the 
books, put up the money for it, wouldn't that be a part of the con- 
spiracy to violate the law ? 

Mr. HoRTON. It would be if you could get positive evidence that 
actually happens. Senator. 

The Chairman. Well, you have books and records. 

Mr. Horton. That is true, but as Attorney General Ervin pointed 
out the attorney general would feel we were exceeding the authority 
of the local law enforcement officers unless requested by the local 
officers. 

The Chairman. It is not particularly our problem, but we got a 
whole truckload of books and records back here. We had no trouble 
getting them. 

Mr. Ervin. Senator, you want to know 

The Chairman, I want to loiow why somebody hasn't done it. 

Mr. Ervin. In the first place, I don't have the authority to prosecute. 
I can't come here and take over the prosecution of cases. Probably I 
might have a duty to recommend and get into it. Where we found 
these violations we brought everything in that we obtained in the 
raids, all the information we got has gone to the local law-enforcement 
officers for prosecution. 

They cooperated to the extent of helping us on these cases where 
we got the information. The local officers, that is, the prosecuting 
officials then take this position: until the case is worked up by the 
sheriff they have no duty to do anything but prosecute once an affidavit 
or a warrant has been sworn out. 



ORGANIZED CRIIME IN INTERSTATE COMMERCE 189 

The Chairman. It wasn't my purpose to try to lecture anybody 
altout their duty. It was just a matter of our inquiry. 

Mr. Gasque. Senator, may I say a word? 

The Chairman. Yes, sir. 

Mr. Gasque. The main trouble we have is, for instance, we arrested 
a notorious bookmaker operating a gambling house. He had in this 
gambling place not only a bookmaking establishment but a roulette 
and other such equipment. That was the Valhalla Club in Holly- 
wood. We went to trial in Fort Lauderdale, the county seat. This 
man's lawyer goes in and without informing the attorney general's 
office — we were represented by Mr. George Owen. Mr. Toni and my- 
self we were sitting out in the hall under the rule to be called in as 
a witness — he gets up and pleads nolle contendre. The judge imme- 
diately fines him $500 without ever hearing the State's side or the 
State's evidence. 

In a lot of cases that we got — we got some in Jacksonville this week. 
Mr. Toni and I raided a big joint there where we got the warrant 
from the justice of the peace. We stayed right with the constable 
to serve the warrant for fear they would be tipped off before we got 
there. When we got there we got these three notorious bookmakers 
whom I have known for 30 years in Jacksonville. The justice of the 
peace made bond of $100 and it is a felony. 

So, I immediately went to the justice's office the next morning and 
explained to this justice of the peace who happens to be a lady the 
seriousness of the bookie bill, that it is a felony to operate a book- 
making joint and she agreed to raise the bond to $500 apiece which 
is $1,500 for the three men. Of course, naturally that doesn't help us 
any because that is just a drop in the bucket to them. They don't 
mind a $500 bond. 

The biggest trouble that we have is when we get one and they don't 
realize that the law says it is a felony to operate a bookmaking joint. 
They fine them $100 or give them a suspended sentence or something 
like that and they get away. 

The Chairman. Mr. Gasque, these people skip their bond? 

Mr. Gasque. In many cases they do. I know a case in Fort Laud- 
erdale that never came up for trial. We never heard anything about 
it. I inquired and was told the man forfeited the bond and the bond 
was $100. That is the cooperation we get trying to do a good job. 

The Chairman. Mr. Ervin, thank you very much and thank you 
Mr. Toni. 

Mr. Toni. Senator, those two names were Alfred M. Olsen 

The Chairman. And his address ? 

Mr. Toni. Miami, and L. Oppenheim, Miami. Flagler Hotel is 
the address. 

The Chairman. And you established that they were employed by 
the Continental Press Service of Chicago ? 

Mr. Toni. That was their statement. 

The Chairman. Do you have their signed statements ? 

Mr. Toni. No, sir. 

The Chairman. Mr, Ervin, we will be very glad if you will sit with 
the committee here and join us. Thank you very much. 

Mr. Ervin. I will come back, Senator. 

The Chairman, Mr. R. W. Howden, please. 



190 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Howden, do you solemnly swear that the testimony you will 
give the committee will be the truth, the whole truth and nothing 
but the truth, so help you God ? 

Mr. HowDEN. I do. 

The Chairman. The committee will stand in recess for 5 minutes. 

(A short recess was taken.) 

The Chaieman. Mr. Howden, will you stand aside just a minute? 
Mr. Ervin, will you come back, please ? 

Mr. Ervin, we forgot to ask you what is the law of Florida with 
reference to the amount allowable for campaign expenditures for 
candidates for various offices, that is. State offices. 

Mr. Ervin. Senator, the law has been repealed that set a ceiling on 
the amounts that could be expended by candidates. This repeal was 
effected by the 1949 legislative session. However, there 

The Chairman. So, as of now there is no limit? 

Mr. Ervin. There is no limit on the amount of expenditures. 

The Chairman. But the present law requires a full listing of all 
contributions? 

Mr. Ervin. A full listing of all contributions. 

The Chairman. What was the law prior to the Legislative Act of 
1949 ? First, the law of 1949 is not retroactive ? 

Mr. Ervin. It is not retroactive. Those of us who ran in 1948 we 
are still under that. 

The Chairman. Does the law that you were under apply to primary 
campaigns as well as general elections ? 

Mr. Ervin. Both. 

The Chairman. What is the law with reference to primary cam- 
paigns ? I mean, what was it in 1948 ? 

Mr. Ervin. You mean, the amount of the limit ? 

The Chairman. Yes. 

Mr. Ervin. The exact amount of that I will get Mr. Horton to look 
up for me. I think it was $5,000 for certain offices. I believe cabinet 
officials. As to the Governor lam not sure whether it was $10,000 
or $12,000, but I will get that for you during the course of the after- 
noon. 

The Chairman. Did this also recjuire a listing of contributions? 

Mr. Ervin. Yes. 

The Chairman. Where would they be listed ? 

Mr. Ervin. They would be listed in the return by the candidate 
filed in the secretary of state office in Tallahassee. 

The Chairman. How come the old law was repealed ? That is re- 
pealed by the 1949 legislature. In other words, who was the moving 
spirit behind it? 

Mr. Ervin. As I remember it, it was a bill that w^as sponsored by 
the house committee, I think, on elections and the reason offered for 
the repeal was that everyone ignored the limitation on expenditures 
anyway, they were making liars out of everybody and it was hypo- 
critical and tliey might as well get rid of it. 

The Chairman. Who was the sponsor of the bill in the house and 
in tlie senate? 

Mr. Ervin. Senator, I can get that for you in the course of the 
afternoon. I will have to make a call to get that. I hate to guess. 

Tlie Chairman. If you will get it and furnish it to the committee 
I will appreciate it. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 191 

Mr. Ervin, was there any fight made in the legishiture against the 
repeal of this hiw^ 

Mr. Ervin. I don't think so. As I recall it, there was a unanimous 
^ote for the bill. 

The Chairman. Do you know wdiether it was recommended by the 
Governor? 

Mr. Ervin. I don't believe it was. 

The Chairman. You don't know^ one way or the other ? 

Mr. Ervin. No, sir; I do not. 

The Chairman. Did tlie bill originate in the house or in the senate? 

Mr. Ervin. I think it originated in the house. I can be mistaken 
about that, Senator, but I can get that for you by consulting the Jour- 
nal recoi'ds. 

The Chairman. Who is the State oflicer in charge of the State elec- 
tion records of contributions? 

Mr. Ervin. Hon. R. A. Gray, secretary of state. 

The Chairman. Is he an elected official ? 

Mr. Ervin. Yes, sir. 

The Chairman. Any questions. Senator Hunt? 

Senator Hunt. How long has he been secretary of state? 

Mr. Ervin. He is going into his twentieth year. 

TESTIMONY OF R. W. HOWDEN, INVESTIGATOR TOR EQUITABLE 
LIFE ASSURANCE SOCIETY 

The Chairman. Thank you, Mr. Ervin. All right, Mr. How^den, 
will you come up ? 

Mr. Halley. I remind you that you have been sworn, Mr. Howclen. 
What is your address, Mr. Howden ? 

Mr. Ho^vDEN. 1428 Northwest Thirty-second Street. 

Mr. Halley. And, where are you now employed ? 

Mr. Howden. I am employed as an investigator with the Equitable 
Life Assurance Society. 

Mr. Halley. How long have you been employed there? 

Mr. Howden. One year on the 16th of June. 

Mr. Halley. Where were you employed between 1945 and 1949 ? 

Mr. Howden. Dade County sheriff's office. 

Mr. Halley. Under what circumstances did you leave the Dade 
County sheriff's office ? 

Mr. Howden. I was dissatisfied with the circumstances there and 
had a chance of a better position. 

Mr. Halley. Was that better position the one with the Equitable 
Life Assurance Society? 

Mr. HowT)EN. Yes, sir. 

Mr. Halley. What positions did you hold on the staff of the Dade 
County sheriff's office ? 

Mr. Howden. I was in charge of the identification bureau from 1945 
to 1947 and then I was assistant homicide investigator. 

Mr. Halley. In 1949 were you considering an offer of a job of chief 
of police some place? 

Mr. Howden. Yes, sir. 

Mr. Halley. Where was that place ? 

Mr. Howden. At Opa Locka, Fla. 

Mr. Halley, In what county is that ? 



192 ORGANIZED CRIME IN INTERSTATE CSO'MMERCE 

Mr, HowDEN. That is in Dade County. 

Mr. Halley. Before going into that matter any further would you 
state who was the sheriff under whom you served ? 

Mr. HowDEN. Sheriff Jimmy Sullivan. 

Mr. Halley. Was there a man in the sheriff's office named Tom 
Burk? 

Mr. HowDEN. Yes, sir. 

Mr. Halley. What position did Tom Burk hold ? 

Mr. Howden. He was a deputy. 

Mr. Halley. Deputy sheriff? 

Mr. Howden. Yes, sir. 

Mr. Halley. Was he in charge of any particular type of work ? 

Mr. HowDEX. His particular work was on the raiding scj[uad or 
gambling squad. 

Mr. Halley. In 1949 when you were considering taking the job of 
chief of police on the Opa Locka force at Opa Locka did you have a 
conversation about that matter with Mr. Burk ? 

Mr. HowDEN. Yes, sir; I did. 

Mr. Halley. Would you state the conversation as fully as you can 
recall ? 

Mr, HowDEX. One morning — I was supposed to take the position 
on the 15th of June and I had submitted my resignation — It was 
about 2 weeks prior to my leaving that it had been submitted to th© 
office — Mr. Burk called me aside and told me that if I was going to 
take a job out at Opa Locka he told me a man to see and if I saw this 
man he would take care of any situation that might come up there as 
far as the gambling situation or any pa^^offs might be concerned. 

Mr. Halley. Can you be more specific? Did he tell you that this 
man was to see to it that you got a cut of the gambling at Opa Locka ? 

Mr. HowDEN, Yes, sir ; he did, 

Mr. Halley. Was there any further conversation with Mr. Burk at 
that time ? 

Mr. HowDEN. At that time he told me that was the man I should 
see and I just left it there. I didn't care anything about it. 

Mr. Halley. Who was the man who was mentioned to you? 

Mr. HowDEN. I was supposed to see a Mr. Red Rainwater. 

Mr. Halley, Can you identify Mr. Rainwater ? 

Mr. Howden. I don't know him personally. I wouldn't know him 
if I would see him. 

Mr. Halley. Did you sometime thereafter have a conversation with 
a man named George Proskoff? 

Mr. HowDEN. Yes, sir. 

The Chairman. Who is George Proskoff? 

Mr. Halley. The chairman would like to know who is George 
Proskoff. 

Mr. HowDEN. He is a deputy constable. 

Mr. Halley. Where? 

Mr. HowDEN. In the first district, Dade County. 

Mr. Halley. Would you state the conversation that you had with 
Mr. Proskoff? 

Mr. HowDEN. I received a telephone call— I think it was the same 
day that I talked to Mr. Burk. It Avas that evening — at home and 
Mr. Proskoff told me that he had $200 for me to take a vacation before 



ORGANIZED CHIME IN INTERSTATE COMMERCIE 193 

I went to Opa Locka. I asked liim what it was for and he said that 
Ked Rainwater had sent it for me. 

I told him I wasn't interested in anything: that he had and if I 
did take the position as chief of police at Opa Locka they would know 
that I was the chief. 

Mr. Hallet. Did you ever take the position of chief of police at 
Opa Locka ? 

Mr. How^DEN. No, sir. Before the time for me to go out there came 
up I took this position that I now have. 

Mr. Halley. Did you have any further conversations concerning 
the position of chief of police at Opa Locka with Burk or Proskoff 
or Rainwater ? 

Mr. Howden. None after that. I had no conversations with Rain- 
water whatsoever. 

Mr. Halley. When did yon last talk to this Tom Burk? 

Mr. HoAVDEN. About 2 or 3 weeks ago, about 2 weeks ago. 

Mr. Halley. Where did you see him ? 

Mr. Howden. Down near the courthouse. 

Mr. Halley. On the street ? 

Mr. Howden. Yes, sir. 

Mr. Halley. And, did you have a conversation wdth him ? 

Mr. How^den. I had a sort conversation with him at that time. 

Mr. Halley. Would you state that conversation tjo the committee? 

Mr. Howden. I met Mr. Burk on the street. I hadn't seen him for 
some months. I asked him how he was getting along and I asked him 
what he thought about the situation developing in the courthouse. 
We had a few words and he told me that he wasn't mad at the boss, 
meaning Sheriff Sullivan, and that his main complaint was that the 
sheriff's wife had accused him of going around with large sums of 
money in his pockets on the streets and he said that they didn't have 
anything on him, that he had turned over to her amounts of $7,000, 
$8,000, $10,000, and $11,000 at a time; that he had signed receipts 
for that money. 

Mr. Halley. Was he talking about money in cash ? 

Mr. Howden. Yes, sir. 

Mr. Halley. And, did he state that he had receipts signed by Mrs. 
Sullivan, Mrs. Jimmy Sullivan ? 

Mr. Howden. Yes, sir. 

Mr. Halley. Was there any further conversation at that time ? 

Mr. Howden. No. We just passed the time of day and I left. 

Mr. Halley. Did you at any other time have conversations with 
Mr. Tom Burk about pay-off money ? 

Mr. Howden. One afternoon leaving the courthouse I believe Mr. 
Burk was quite upset. The sheriff', as I understand it, had called him 
in and reprimanded him about a new automobile that he had bought 
and in getting on the elevator I made a remark that he better be careful 
or the crime commission would get after him and he said that he didn't 
give a damn about the crime commission, that he made his and that he 
had taken care of the man with the whiskers and the rest of them 
could all go to the devil. 

Mr. Halley. Did he ever in so many words admit that he was "in 
on the take" ? 

Mr. Howden. In so many words ; yes. 



194 ORGANIZED CHIME IN EVTERSTATE COMMERCE 

Mr. Halley. And it was understood between you that being "in 
on the take" meant receiving bribe money from gamblers, is that cor- 
rect? 

Mr. HowDEN. I think that was pretty general knowledge around 
the courthouse. 

Mr. Halley. Is there anything else on the subject of bribe money 
or about the sheriff's office which you want to tell to the committee? 

Mr. HowDEN. No, sir. 

Mr. Halley. You were brought here pursuant to a subpena, is that 
correct ? 

Mr. HowDEN. Yes. sir. 

Mr. Halley. You did not volunteer to testify ? 

Mr. HowDEN. No, sir. 

Mr. Halley. You have been offered no inducement of any kind 
whatsoever to testify, have you ? 

Mr. HowDEN. No, sir. 

Mr. Halley. I have no further questions, Mr. Chairman. 

The Chairman. Mr. Howden, where is Opa Locka? 

Mr. HowDEN. It is located, I believe, about 18 miles from the court- 
house. It is j ust north of the Miami Naval Air Station. 

The Chairman. Is it in Dade County ? 

Mr. HowDEN. Yes, sir. 

The Chairman. How large a town is it ? 

Mr. HowDEN. It has a population according to the last census, I 
believe, of about 8,000. 

The Chairman. Who is Red Rainwater? 

Mr. HowDEN. He is a local gambler. I believe he is interested in 
numbers and some slot machines. 

The Chairman. Does he have that reputation and is he well known 
as a gambler ? 

Mr. HowDEN. Yes, sir. 

The Chairman. Any questions. Senator Hunt ? 

Senator Hunt. No. 

The Chairman. Thank you, Mr. Howden. Now, is Mr. Burk here? 

TESTIMONY OF THOMAS G. BURK, DEPUTY SHERIET, 
DADE COUNTY, FLA. 

Mr. Burk. Here. 

The Chairman. Mr. Burk, do you solemnly swear that the testi- 
mony you will give this committee will be the truth, the whole truth 
and nothing but the truth, so help you God ? 

Mr. Burk. I do. Yes, sir. 

The Chairman. Now, Mr. Burk, you have been subpenaed to come 
here and testifv, is that correct? 

Mr. Burk. That is correct. 

The Chairman. You, of course, understand that you are under 
oath in giving this testimony? 

Mr. Burk. Yes, sir. 

The Chairman. All right, Mr. Halley. 

Mr. Halley. Did you hear the testimony of the last witness ? 

Mr. BuiiK. I did, sir. 

Mr. HaTvLey. Plis name is R. W. Howden, is that right ? 

Mr. Burk. Correct. 



ORGANIZED CRIME' IN INTERSTATE COMMERGE 195 

Mr. Halley. Do you know the last witness? 

Mr. BuRK. Only by working with him. 

Mr. Halley. Did you work with him in the sheriff's office ? 

Mr. BuRK. We worked there in the same department. 

]VIr. Halley. What department was that? 

Mr. BuRK. The criminal department in the sheriff's office of Dade 
County, State of Florida. 

Mr. Halley. Was he attached to your gambling squad ? 

Mr. BuRK. Now and then he would go out ; yes, sir, 

Mr. Halley. Was that his principal duty ? 

Mr. BuRK. No, sir. 

Mr. Halley. What is your principal duty in the sheriff's oiBce ^ 

Mr. BuRK. I took care of the criminal court of record, the bail in 
tlie court, served papers and in the meantime went out and made 
pinches of operating gambling houses. 

Mr. Halley. Do you desire to comment on the testimony of the last 
witness? 

Mr. BuRK. Say that again, please. 

Mr. Halley. Do you desire to comment on the testimony of Mr. 
Howden ? 

Mr. BuRK. In other words, it is false. 

Mr. Halley. Did you have a conversation of any kind with Mr. 
Howden about 2 weeks ago? 

Mr. BuRK. I did. 

Mr. Halley. Did you meet him on the street? 

i\Ir. BuRK. I did. 

Mr. Halley. In the vicinity of the courthouse ? 

Mr. BuRK. Yes, sir. 

Mr. Halley. Would you state what the conversation was between 
j you and Mr. Howden ? 

Mr. BuRK. What I said, you mean ? 

Mr. Halley. Yes ; and what he said. 

Mr. BuRK. We met at a parking lot on Northwest First Street just 
west of tlie railroad tracks. He said, "How are you doing, Mate T' 
I said, "I am doing all right." He said, "How are you getting along 
on the farm?" and I said, "Fine." I said, "What are you doing?"' 
and he said something about still working for the insurance peoi)le. 

He said, "What do you know, I have seen George the Greek." 
(ieorge the Greek had been working in the sheriff's office upstairs in 
tlio criminal department. I said, "What is the matter with him," 
i and he said, "I was talking with him and and was kidding with him." 
! Now, this boy that was here he said he was kidding with George the 
Greek. He said, "George, how are you feeling?" and he said, "I am 
doing all right." He says, "You know they got something on you." 
and he said, "I ain't giving a God damn what they got on me." 

That is what Dick Howden told me. 

Mr. Halley. What did you have in mind, both have in mind? 

Mr. BuRK. I didn't ask. I was subpenaed to come to court that 
morning and didn't have much time. 

Mr. Halley. You have no idea what anybody might hare on 
' Howden ? 

Mr. BuRK. No, sir. 



196 ORGANIZED ORIIME IN INTERSTATE COMMERCE 

Mr. Halley. Is it true that you have, as alleged by Mr. Howden, 
given large sums of money in cash in amounts of $7,000, $8,000, 
$10,000, and $11,000 to Mrs. Jimmy Sullivan? 

Mr. BuEK. That is false. 

Mr. Halley. Have you ever given any sums of money in cash to 
Mrs. Jimmy Sullivan ? 

Mr. BuEK. No, sir. That is false. 

Mr. Halley. Have you ever given any sums of money to Jimmy 
Sullivan, the sheriff? 

Mr. BuRK. No, sir ; that is false. 

Mr. Halley. Did you in 1949 have a conversation with Mr. How- 
den about his taking the job of chief of police at Opa Locka? 

Mr. BuRK. A few words ; yes, sir. He told me. He said, "Tom, I 
got a break. I believe I am going out to Opa Locka as chief of police." 
I said, "That is a nice community. Why don't you go out there?" 

Mr. Halley. And during that conversation was a man named Red 
Rainwater mentioned at all ? 

Mr. BuRK. Not by Tom Burk. 

Mr. Halley. Was he mentioned by R. W. Howden ? 

Mr. Burk. No, sir. 

Mr. Halley. Have you ever read about him in the newspapers ? 

Mr. Burk. Yes, sir. 

Mr. Halley. Do you know who he is ? 

Mr. Burk. I could pick him out of a crowd; yes, sir. 

Mr. Halley. You could pick him out of a crowd? 

Mr. Burk. Yes, sir. I arrested him twice operating 

Mr. Halley. Was it an error when the first time I asked you whether 
you heard of Red Rainwater and you said, "No, sir"? 

Mr. Burk. There is two of them. 

Mr. Halley. Wliich one of them haven't you heard of? 

Mr. Burk. One is a lawyer here and one is operating book. 

Mr. Halley. If you know of the two of them how could you not 
have heard of either one of them ? 

Mr. Burk. One I don't know. 

Mr. Halley. Do you remember having told Howden that you would 
fix him up with a cut of the gambling in Opa Locka ? 

Mr. Burk. No, sir. 

Mr. Halley. You never told him anything like that ? 

Mr. Burk. No, sir. 

Mr. Halley. What is Red Rainwater's business in Opa Locka? 

Mr. Burk. I wouldn't know, sir. 

Mr. Halley. Is he in the gambling business ? 

Mr. Burk. I wouldn't know, sir. 

Mr. Halley. You have no idea ? 

Mr. Burk. No, sir. 

Mr. Halley. Even by reputation ? 

Mr. Burk. No, sir. 

Mr. Halley. You arrested him twice ? 

Mr. Burk. Not in Opa Locka; the city of Miami. 

Mr. Halley. Wliat did you arrest him in Miami for ? 

Mr. Burk. Operating a gambling house. 

Mr. Halley. "VVliat is his business in Miami ? 

Mr. Burk. I believe he is in the business of chartering books. 

Mr. Halley. Does he do any gambling business ? 



ORGANIZED CRIIME IN INTERSTATE COMMERCE 197 

Mr. BuRK. When I seen liini he was and I picked him up. 

Mr. Halley. You saw him gambling? 

Mr. BuRK. I didn't see him gambling, but I took his place and took 
him. 

Mr. Halley. And you saw him operating a gambling establishment 
on two occasions? 

Mr. BuRK. No, sir ; on one occasion. I lost one case with him. 

Mr. Halley. In the other case he was convicted ? 

Mr. BuRK. Correct. 

Mr. Halley. Did you ever tell anybody that you were "in on the 
take*'? 

Mr. BuRK. Take of what? 

Mr. Halley. Take a bribe ? 

Mr. BuRK. No, sir. 

Mr. Halley. When did you enter the sheriff's office? 

Mr. BuRK. On January 1, 1944. 

Mr. Halley. What had you been doing previously? 

Mr. BuRK. Since August 1, 1949, 1 went on a farm. 

Mr. Halley. You quit the sheriff's office in 1949; is that right? 

Mr. BuRK. Correct. 

Mr. Halley. Did you purchase that farm? 

Mr. BuRK. Yes, sir; with mortgages. 

Mr, Halley. What was the purchase price of the farm ? 

Mr. BuRK. $26,700— $26,725. 

Mr. Halley. How much of that did you pay in cash? 

Mr. BuRK. $1,000 and $4,000, $5,000. There was a $10,750 moi-t 
gage on it and I paid $1,000 and $4,000. I paid $26,750. 

Mr. Halley. You paid $26,750 

Mr. BuRK. For the place and it is mortgaged. 

Mr. Halley. How much of that did you pay in cash ? 

Mr. BuRK. $5,000. 

Mr. Halley. $5,000? 

Mr. BuRK. That is correct. 

Mr. Halley. Do you operate that as a farm ? 

Mr. BuRK. Yes, sir. 

Mr. Halley. You are retired, in other words? 

Mr. BuRK. You can call it that, but I am up to my knees in 
mortgages. 

Mr. Halley. Do you own them or are you the debtor on these 
mortgages ? 

Mr. BuRK. I have a home mortgage and I still owe $15,000 and 
something on the place yet. I pay rent ; you know what I mean. 

Mr. Halley. But you don't work for a living anymore? 

Mr. BuRK. I work in the grove, yes ; planting tomatoes, pears, and 
mangoes. Sure, I work. 

Mr. Halley. Did you have a farm before you went into the sheriff's 
office? 

Mr. BuRK. I was a nurserj' man. 

Mr. Halley. For how many years? 

Mr. Bltrk. Oh, maybe about seven or eight. 

Mr. Halley. During what period ? 

Mr. BuRK. Oh, say 1900. 

Mr. Halley. And between around 1900 and 1949 you did no 
farminjr? 



198 lORG'ANIZED CRIME IJST INTE'RSTATE COMMERCE 

Mr. BuRK. No, sir ; only around the house. 

Mr. Halley. You don't maintain that you are operating this farm 
to earn a living now, do you? 
Mr. BuRK. I do. 

Mr. Hali.ey. What is the amount of money you earned on this farm 
in the last year ? 

Mr. BuRK. In the year 1949 I paid the internal revenue, $1,069, 
Mr. Halley. Tax? 
Mr. BuRK. Income tax. 

Mr. Halley. Was that income from the farm ? 
Mr. BuRK. Yes, sir — not all from the farm ; no, sir. 
Mr. Halley. What was the remainder of that income ? 
Mr. BuRK. The remainder of the income I think — close to $5,000 I 
took from the farm and I got about $4,100 that I put extra miscella- 
neous gambling. 

Mr. Halley. What kind of gambling was that? 
Mr. BuRK. At the Hialeah Race Track. 

Mr. Halley. You mean, you just went in and won $1,000 on mis- 
cellaneous bets? 

Mr. BuRK. That is correct. In the last week in the month of Janu- 
ary I had some warrants in my hands to execute them. I went to the 
Hialeah track, met a couple of the boys and made a bet and collected. 
Mr. Halley. Was that a single bet ? 
Mr. BuRK. It wasn't what you call a big bet ; no. 
Mr, Halley. What did you make on the one bet ? 
Mr. BuRK. I got about $2,600 on the first bet and collected my man 
and brought him back, 

Mr. Halley. Did you make any more income on bets at the race 
track ? 

Mr. BuRK. Yes, sir. 
Mr. Halley. How much ? 
Mr. BuRK, About $4,100. 
Mr. Halley. About $4,100 ? 
Mr. BuRK. Yes, sir. 

Mr. Halley. These were bets you made in cash Avith the mutuel 
machine ? 

Mr. BuRK, Yes, sir. 

Mr. Halley. And you declared those profits on your income-tax 
returns ? 
Mr. BuRK. Yes, sir. 

Mr. Halley. Are you sure you weren't paying income on some cash 
you got in some other way ? 
Mr. BuRK. No, sir. 

Mr. Halley, Did you hear Mr, Howden testify that j^ou had stated 
to him that you took care of Uncle Sam ? 

Mr. BuRK. Yes — I don't quite understand what he meant by that. 
Mr. Halley. Well, I believe he explained he meant that you paid 
your income tax on whatever cash you took. 
Mr. BuRK, Those words were never used. 

Mr. Halley. But you did take care of Uncle Sam on this ffambline 
profit? 

Mr. BuRK. If you want to say 1 took care of Uncle Sam, I did. I 
paid my income tax. Is that what you mean? 



ORGANIZED CRIME. IN INTERSTATE COMMERCE 199 

Mr. Halley. It is not customary among people you know to declare 
on race-track profits. 

Mr. BuKK. He asked me, "Did you make any money?" and I said, 
"Yes." 

Mr. Halley. Have you in previous years declared winnings on 
horse races? 

Mr. BuRK. No, sir. 

Mr. Halley. Just this year? 

Mr. BuRK. Well, in 1948 and 1947. 

Mr. Halley. You also declared race-track winnings? 

Mr. BuRK. A few dollars ; yes, sir. 

Mr. Halley. Well, how much ? 

Mr. BuRK. Maybe about $900, $400. 

Mr. Halley. In any other years did you declare race-track win- 
nings? 

Mr. BuRK. No, sir. 

Mr. Halley. What was the horse you won $2,600 on ? 

Mr. BuRK, I wouldn't know the horse's jiame. You go by numbers.; 

Mr. Halley. You have no idea of the horse's name? 

Mr. Burke. Three or four horses. 

Mr. Halley. Do you remember the name of the jockey who made 
that money for you ? 

Mr. Burk. No, sir. 

Mr. Halley. Just a complete blank? 

Mr. Burk. Yes, sir. 

Mr. Hali>ey. How often have you won $2,600 on horse racmg? 

Mr. Burk. The first time. 

Mr. Halley. Never before in your life ? 

Mr. Burk. No, sir. In fact, I was never much on playing the 
horses. 

Mr. Halley. Do you OAvn any other property in addition to the 
farm you described? 

Mr. Burk. Yes, sir. 

Mr. Halley. Will you state what it is ? 

Mr. Burk. The home. 

Mr. Halley. Where is that ? 

]Mr. Burk. It is located at 2497 Twenty-first Terrace, city of Miamiy 
Dade County. 

Mr. Halley. When did you purchase the home? 

Mr. Burk. In 1946. 

Mr. Halley. That was the year after you went to the sheriff's^ 
office. 

Mr. Burk. That was 2 years. 

Mr. Halley. Two years after? 

^Ir. Burk. Yes. 

Mr. Halley. What did 3'ou pay for that home? 

Mr. Burk. I paid $8,00() down' for the home. 

Mr. Halley. You put down $8,000 in cash ? 

Mr. Burk. Correct ; cash. 

Mr. Halley. What did the liome cost? 

Mr. Burk. $11,000. 

Mr. Halley. You paid $8,000 of the $11,000 in cash ? 

Mr. Burk. That is right. 

68958 — 50 — pt. 1 14 



200 ORGANIZED CRIME IN INTERSTATE COOVIMERCE 

Mr. Hallet. Do you own any other property ? 

Mr. BuRK. No, sir. 

Mr. Halley. None whatsoever? 

Mr. BuRK. No, sir. 

Mr. Halley. Are you married ? 

Mr. BuRK. Yes, sir. 

Mr. Halley. Does your wife own any property ? 

Mr. BuEK. No, sir. 

Mr. Halley. Do you have any children ? 

Mr. BuRK. No, sir. 

Mr. Halley. Do you have any bank accounts ? 

Mr. BuRK. In the year 1949 ; yes, sir. 

Mr. Halley. How much did you have in the bank at the beginning 
of 1949? 

Mr. Btjrk. Nothing. 

JNIr. Halley. Nothing? 

Mr. BuRK. No, sir. 

Mr. Halley. Will you state to the committee how much you had in 
the bank during any time in 1949? What is the maximum amount? 

Mr. BuRK. I don't think I put any money in the bank until August ; 
probably $3,000. 

Mr. Halley. Where did you get that $3,000. 

Mr. BuRK. That came from checks from the grove. 

Mr. Halley. From the grove ? 

Mr. BuRK. Yes, sir. 

Mr. Halley. From the sale of fruit ? 

Mr. BuRK. That is correct. 

Mr. Halley. And you put that in the bank? 

Mr. BuRK. Regular channels ; yes, sir. 

Mr. Halley. Up to that point did you have a bank account ? 

Mr. BuRK. No, sir. 

Mr. Halley. How did you pay for the house when you paid $8,000 
down? 

Mr. BuRK. I have been in the city of Miami, Dade County, for 30 
years and never was out of employment. I made a few dollars and 
that was my savings. 

Mr. Halley. Where did you keep your savings, in a shoe ? 

Mr. BuRK. In the house. 

Mr. Halley. In a box ? 

Mr. BuRK. Yes, sir. 

Mr. Halley. A tin box ? 

Mr. BuRK. Yes, sir. 

Mr. Halley. Where did you keep the $8,000 ? 

Mr. BuRK. In the house. 

Mr. Halley. And where did you keep the $5,000 that you used to 
buy the farm ? 

Mr. BuRK. I didn't make that until 1949. 

Mr. Halley. How did you make that $5,000 ? 

Mr. BuRK. One thousand dollars I had from the race track and 
then I got a note for $4,000 which is pending yet. That was $5,000. 

Mr. Halley. How did you get the note for $4,000 ? 

Mr. BuRK. I got a note. 

Mr. Halley. How did you get a note ? 

Mr. BuRK. M}' 



ORGANIZED CRIIME IN INTBRSTAT'E OOMMEROE 201 

Mr. Halley. Will you describe that transaction ? 

Mr. BuKK. My sister-in-law. 

Mr. Halley. Your sister-in-law ? 

Mr. BuRK. That is right. 

Mr. Halley. You mean, she loaned you $4,000 ? 

Mr. BuKK. Yes, sir. 

Mr. Halley. That was not your money ? 

Mr. BuRK. No, sir. That was to bargain to sell the other house. 

Mr. Halley. Did you ever sell the other house ? 

Mr. BuRK. No, sir. 

Mr. Halley. Has your sister-in-law asked 

Mr. BuRK. It was mortgaged. 

Mr. Halley. Has your sister-in-law asked you for the money? 

Mr. BuRK. No ; she hasn't asked yet. I paid her $500 back already. 

Mr. Halley. By check? 

Mr. BuRK. Yes, sir. 

Mr. Halley. I thought you had no checking account ? 

Mr. BuRK. That came after August 1. 

Mr. Halley. You opened a checking account with the profits of the 
farm? 

Mr. Btjrk. Later in August, yes, sir, in 1949. 

Mr. Halley. What made you decide after you had the farm to put 
trust in banks ? 

Mr. BuRK. It was all checks and I couldn't handle it. 

Mr. Halley. You mean, the money you got before 1949 was cash? 

Mr. BuRK. I didn't start in 1949. It was in August 1949 when I 
started putting it in the bank. 

Mr. Halley. That was because you got checks ? 

Mr. BuRK. Yes. 

Mr. Halley. Are we to assume that the $8,000 you accumulated to 
buy your house in 1946 you got in cash ? 

Mr. BtJRK. That was in cash. That was my savings, yes, sir. 

Mr. Halley. Wliat was your salary as a deputy sheriff? 

Mr. BuRK. When I first went to work I think it was $300 and when 
I finished it was $350. 

Mr. Halley. $300 a month ? 

Mr. BuRK. I think when I finished it was $350. 

Mr. Halley. You say you became a deputy sheriff in 1944? 

Mr. BuRK. First day of January, 1944. 

Mr. Halley. What was your occupation prior to January 1944 ? 

Mr. BuRK. I was manager of the Police Benevolent Association of 
the City of Miami, Dade County. 

Mr. Halley. What was your rate of compensation in that job? 

Mr. BuRK. I don't know. 

Mr. Halley. Was it more than $50 a week? 

Mr. BuRK. I don't know. 

Mr. Halley. Was it more than $40 a week? 

Mr. BuRK. I don't know. 

Mr. Halley. Was it more than $30 a week ? 

Mr. BuRK. You mean the wages ? 

Mr. Halley. Yes. 

Mr. BuRK. It was $35. 

Mr. Halley. Thirty-five dollars a week? 

Mr. BuRK. Yes. 



202 ORGANIZED CRIME IN IN^TERSTATE COMMERCE 

Mr. Halley. How long did it take you to save that $8,000 in cash? 

Mr. Burke. Oh, about 18 to 20 years. 

Mr. Halley. All that time you kept that money in a box in your 
house ? 

Mr. Burke. Yes, sir. 

Mr. Halley. And then a vear after vou became deputy sheriff you 
bought a house for $8,000 — - 

Mr. Burke. That is correct. 

Mr. Halley. In cash? 

Mr. BuRK. Tlie Avar broke loose and the wife and I got together and 
we thought we better get something now. I thought I had a decent 
job to carry on. 

Mr. Halley. Do you know a Mr. Crosby ? Tom Crosby. 

Mr. BuRK. I know a Bill Crosby. 

Mr. Halley. You know a Bill Crosb}^? 

Mr. BuRK. Yes. 

Mr. Halley. Wlio is he ? 

Mr. BuRK. I think I was introduced to Bill Crosby one day in the 
sheriff's office up on the nineteenth floor in the county courthouse as an 
investigator for the Governor of the State of Florida. 

Mr. Halley. In what year? 

Mr. Burke. In 1948. 

Mr. Halley. In 1948? 

Mr. BuRK. 1948. 

Mr. Halley. Could it have been 1949? 

Mr. BuRK. It might have been 1949, the first G months, tliat is right. 

Mr. Halley. It was the early part of 1949? 

Mr. BuRK. The early part of 1949. 

Mr. Halley. About January? 

Mr. BuRK. That is right. 

Mr. Halley. Right after Governor Warren was elected? 

Mr. Bltrk. That is correct ; I am sorry. 

Mr. Halley. Practically immediately afterward? 

Mr. BuRK. That is right. 

Mr. Halley. Who introduced you to Mr. Crosby? 

Mr. BuRK. The sheriff of Dade County, Jimmy Sullivan. 

Mr. Halley. What did Jimmy Sullivan tell you ? 

Mr. BuRK. One day, I don't just remember the date, the sheriff' left 
an order with the chief criminal investigator, Jim Hawkins, notifying 
me not to go out to serve any papers. He said he would like to see 
me. Well, I stayed after lunch. I came up and went back in the 
criminal office up there and Sullivan was there and Mr. Crosby. The 
sheriff said, "Tom, I want to introduce you to a fellow by the name 
of Bill Crosby. He i-epresents the Governor's office. I want you to 
take him any place where he wants to go regardless of where it is so 
long as it is in Dade Countv." 

I said, "O. K., sheriff." 

Mr. Halley. Was Mr. Crosby supposed to be investigating any- 
thing in particular? 

Mr. Bi^RK. Not that I know of. 

Mr. Halley. Gambling? 

Mr. BuRK. The way we started that woidd be the only thing he 
wont to. 



ORG'AJSriZED CRIME IN INTERSTATE OOMMEROE 203 

Mr. Halley. Slot machines? 

Mr. BuRK. I guess anything; operated. 

Mr. Halley. Let's be specific. Didn't Mr. Crosby say lie was sup- 
posed, he was there to investigate slot machines in Dade County ? 

Mr. BuRK. He told that to the sheriff maybe, but I didn't hear it. 

Mr. Halley. He didn't tell that to you ? 

Mr. BuRK. No. 

Mr. Halley. But did the sheriflf tell you Crosby was there to inves- 
tigate slot machines? 

Mr. BuRK. No, sir. 

Mr. Halley. Did you have that conversation in the morning, of a 
particular day? 

Mr. BuRK. No; I believe it was after lunch. 

Mr. Halijsy. Then what happened? 

Mr. BuRK. Bill Crosby and I left. We went to the beach. 

Mr. Halley. You mean 3'ou got into an automobile? 

Mr. BuRK. That is correct. 

Mr. Halley. Whose car? 

Mr. BuRK. My car. 

Mr. Halley. Your personal car or an official car? 

Mr. BuRK. My car. 

Mr. Halley. Your personal car ? 

Mr. BuRK. That is right. 

Mr. Halley. What kind of an automobile was that ? 

Mr. BuRK. It was a Chrvsler. 

Mr. Halley. A Chrysler? 

Mr. BuRK. Yes. 

Mr. Halley. What year ? 

Mr. BuRK. 1948. 

Mr. Halley. 1948 Chrysler? 

Mr. BuRK. Yes. 

Mr. Halley. What model? 

Mr. BuRK. New Yorker. 

Mr. Halley. That is the large one ? 

Mr. BuRK. No; there is an Imperial. 

Mr. Halley. There is one bigger? 

Mr. BuRK. Yes. 

Mr. Halley. What did you pay for that Chrysler automobile? 

Mr. BuRK. I turned my other car in. I turned in my 1944 or 1945 
Dodge, and I had to pay I think it was $92 to the finance man. 

Mr. Halley. You mean somebody gave you a brand new Chrysler 
in return for a 1944 Dodge ? 

Mr. BuRK. Well, no. 

Mr. Halley. How much money did you pay for the Chrysler auto- 
mobile ? 

Mr. BuRK. I just don't remember what I laid down. 

Mr. Halley. You paid money for it? 

Mr. BuRK. I had to give something in order to get it off the floor; 
that is correct. 

Mr. Halley. How much did you give? 

Mr. BuRK. I just don't remember what it was. 

Mr. Halley. Did you then pay it out monthly or 

Mr. BuRK. Paid with the finance man. 

Mr. Halley. You financed it? 



204 'ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. BuRK. That is right. 

Mr. Hallet. And you paid monthly ? 

Mr. BuRK. That is right. 

Mr. Halley. How much was the total price of that Chrysler ? Ap- 
proximately over $2,000? 

Mr. BuRK. Yes, sir. 

Mr. Halley. Close to $3,000, wasn't it? 

Mr. BuRK. I think it was $2,600. 

Mr. Halley. $2,600 ? 

Mr. BuRK. Yes, sir. Maybe it was a little more. 

Mr. Halley. It might have been a little over that? 

Mr. BuRK. It might be. 

Mr. Halley. Did you handle that out of savings, too? 

Mr. BuRK. Yes, sir. 

Mr. Halley. Now to get back to Crosby ; where did you go ? 

Mr. BuRK. We went to Miami Beach. 

Mr. Halley. What did you do there ? 

Mr. BuRK, After we crossed the causeway he directed me to go, 
where to go. 

Mr. Halley. Where did he direct you to go ? 

Mr. BuRK. I believe the first place we went to Avas up at some hotel 
on Collins Avenue. 

Mr. Halley. What hotel was it ? 

Mr. BuRK. I can't remember. I just don't remember. And we took 
the place — knocked the place off and they were convicted and paid their 
fine. 

Mr. Halley. What were they doing there ? 

Mr. BuRK. OperatinjL^. 

Mr. Halley. Operating what ? 

Mr. BuRK. Book or horse. 

Mr. Halley. Horse parlor? 

Mr. BuRK. You can call it that ; yes. 

Mr. Halley. No slot machines ? 

Mr. BuRK. No. 

Mr. Halley. Were there any slot machines in the lobby ? 

Mr. BuRK. No, I don't think so. I didn't see no slot machines. 

Mr. Halley. You didn't see any slot machines over there? 

Mr. BuRK. No, sir. There was a barroom. 

Mr. Halley. Where did you go after the first hotel that you knocked 
off? 

Mr. BuRK. We took the defendant back to the county jail and booked 
him. He went out on $500 bond. 

Mr. Halley. Then what did you do ? 

Mr. BuRK. I don't think we went out that day any more. 

Mr. Halley. Did you go out on a subsequent day ? 

Mr. BuRK. We might have went out probably the following day or 
the day after. 

Mr. Halley. What happened the next time you went out? 

Mr. Btjrk. We went to the beach, went around by the courthouse, 
which is located down Meridian Avenue and First Street, and he says, 
"Tom, let's go up Washington Avenue." We went up Washington 
Avenue and he savs, "Pull over there at Fourth Street and Washing- 
ton Avenue." "We are going into that apartment house." he said. I 
didn't say anything. As I pulled up to the curbstone there was one 



ORGANIZED CRilME IN INTERSTATE COMMERCE 205 

of our men, George the Greek. As I pulled up I said, "What are you 
doing here, George?" and he said, "I am serving a paper." I said, 
"Since when do you work for the civil department?" and he says, 
"I don't work for the civil department. I am just checking up on a 
couple of joints." I said, "That is fine." 

Mr. Halley. Let us get this stra'ght. You found George the Greek 
in the bookmaking establishment ? 

Mr. BuRK. No, sir. He was on the curbstone. 

Mr, Halley. He wasn't in the establishment? 

Mr. BuRK. No, sir. 

Mr. Halley. But he didn't belong in that part of town at all, is 
that right ? 

Mr. BuRK. It looked funny to me because he was working on the 
telephone. That was where liis duty was on the telephone and when 
I seen him he was on the curbstone waiting. 

Mr. Halley. Then what happened ? 

Mr. BuRK. So George spoke to Mr. Crosby. He said a few words. 
He said, "We are going to take that place." 

Mr. Halley. Who said, "We are going to take that place" ? 

Mr. BuRK. Mr. Crosby. 

Mr. Halley. Then what happened ? 

Mr. BuRK. So I asked Crosby, I says, "What is going on here?" 
and he says, "It is one of the joints." I said, "You got a warrant?" 
I said to George the Greek, "You got a warrant?" and he said, "No," 
I said, "Go ahead, let's see what you can do." 

So they went in and I followed them. They had a guy in the hall 
up against the wall. George the Greek had this fellow against the 
wall with his hands in his pockets, I approached the place and 
I said, "George, what is wrong?" and he said, "He just come out of 
the door clown there." I said, "You can't put your hands in his pockets 
iniless 3^ou got a warrant. You can't put your hands in anybody's 
pockets unless you got a warrant. You haven't put the boy under 
arrest yet, have you?" and he said, "Well, I have seen him come from 
that door." I said, "Go ahead, make the arrest and see where it will 
get you," 

So, he turns the guy loose and he walked up and down the hall 
once or twice or three or four times. So I says, "That is the door," 
I busted the door in. I just remember the number of the door. I 
do remember the joint was 450 Washington Avenue. When we got 
in there I broke in the door and I broke into a bedroom. There were 
two beds in that room and there was another door. I knocked that 
one down. 

And that is what I had seen. 

Mr. Halley. What did you see ? 

Mr. BuRK. I seen about four or five men in there. 

Mr. Halley. What were they doing ? 

Mr. BuRK. Just sitting around the table just like these gentlemen 
are sitting around here [indicating], 

Mr. Halley. There were no telephones ? 

Mr. BuRK. There was telephones, there ; yes, sir, 

Mr. Halley. Were they operating book? 

Mr. BuRK. I believe it was an office. 

Mr. Halley. You believe it was an office ? 



206 ORGANIZED CRIME IX INTERSTATE COMMERCE 

Mr. BuRK. Yes. 

Mr. Halley. What kind of an office ? 

Mr. BuRK. Horse booking. 

Mr. Halley. Horse-booking office ? 

Mr. BuRK. There are two ends to this; a parlor and an office and 
a room are two different things. When you talk "horse booking," 
that is an office. If j^ou are going into a horse room, that is where 
they have sheets. 

Mr. Halley. All of the time Mr. Crosby was with you ? 

Mr. BuRK. Correct. 

Mr, Halley. He came right along behind you ? 

Mr. BuRK. Yes. 

Mr. Halley. Did you arrest the men that you found in that room? 

Mr. BuRK. I made no arrest, because I couldn't make it stick. I 
broke the joint down, broke it open. I said, "Do you want to file," 
and he said, "I can't file." 

Mr. Halley. Who said that ? 

Mr. BuRK. Crosby. I said, "Why not — you are well heeled." 

Mr. Halley. What do you mean by "you are well heeled" ? 

Mr. BuRK. He had a gun on. He said, "I can't file. I don't know 
what to do. There is no use to file on them. Their mouthpiece will be 
helre." 

Mr. Halley. By "mouthpiece" do you mean the lawyer? 

Mr. BuRK. Attorney. 

Mr. Halley, Did you have a pretty good idea who the mouthpiece 
was going to be ? 

Mr. BuRK. We found out afterward. He came there, 

Mr, Halley, Who was it? 

Mr, BuRK, Mr, Bennie Cohen, 

Mr. Halley. Was Bennie Cohen the mouthpiece for the S. & G. 
boys ? 

Mr. BuRK. I don't know. I just heard about that. 

Mr. Halley. You know the S. & G. ? 

Mr. BuRK. Well, I have heard so much over the grapevine, 

Mr, Halley, What have you heard ? 

Mr, BuRK. I have heard of one or two guys like Jules Levitt. Just 
the w^ay the paper says, and we always see another new name in the 
gang. 

Mr. Halley. Whose new name did you see ; whose new name in the 
gang? 

]\Ir. BuRK. Every time we see it they had a new name. 

Mr. Halley. Would the new name in the gang be Harry Russell? 

Mr, BuRK. I never heard of Harry Russell. 

Mr. Halley, You never heard the name Harry Russell before today ? 

Mr, BuRK, Only today, 

Mr, Halley, I think we had better stop here and jiause because 
we are going a little too fast. You are under oath and the question 
of 2")erjury goes just as much to what you heard as to what you did 
■or didn't do. Now, did you ever hear before this day of Harry 
Russell ? 

Mr. BuRK. No. sir. 

Mr. Halley. You never heard of him? 

Mr, BuRK. No, 



ORGAJSriZED CRIIME IN INTERSTATE COMMERCE 207 

Mr. Halley. Not even in the newspapers? 

Mr. BuRK. Only what I seen in the papers. 

Mr. Halley. You never heard his name spoken by anyone? 

Mr. BuRK. No, sir, 

Mr. Halley. To jjo on with tlie pinch with Crosby. What hap- 
pened after your conversation in which you tokl him to make the 
pinch ? 

Mr. BtiRK. Well, 10 or 15 minutes went by and all of a sudden 
here comes Jules Levitt and his attorney, and he says, "What are you 
doing?" 

]Mr. Halley. Were you still in the house ? 

Mr. BuRK. We were sitting in the bedroom. 

Mr. Halley. Was Levitt there already ? 

Mr. BuRK. In about 15 minutes. 

Mr. Halley. He must have had a pretty good idea of what was 
going on. 

Mr. BuRK. No phone rang. 

Mr, Halley, You had not made the pinch? 

Mr. BuRK. No. 

Mr. Halley. Jules Levitt walked into the bookmaking establish- 
ment ? 

Mr, BuRK, About 10 minutes afterward. 

Mr. Halley. Who was with him? 

Mr. BuRK. Bennie Cohen, his attorney. 

Mr. Halley. Bennie Cohen? 

Mr. BuRK. Yes. 

Mr, Halley. What conversation f ollow' ed ? 

Mr, BuRK, And then Jules said to me, "What are you doing here? 
Do you have a warrant?" I said, "No," and he said, "How did you 
get in; who broke the door down?" I said, "We did," and he says, 
"All right, we will take care of that." So Jules Levitt walked up 
the hall with Mr. Crosby about 20 feet away and the conversation 
was going on up there, so I couldn't hear it. I was still in the room, 
right there on the threshold looking one way and then the other. 
Mr. Levitt comes back and Mr. Crosby comes back and says, "Well, 
we made a deal. We will take in one." I said, "You will take all 
or none. If I have to file on them, I am going to take all or none, 
because our office don't work like that." 

Mv. Halley. What happened next? 

Mr. BuRK. He said, "Well, we will come to the conclusion that we 
will settle the matter that way." I said, "I couldn't see just taking- 
one." We will take all or none, I said. 

Mr. Halley. What happened then? 

Mr. BuRK. We didn't take any. 

Mr. LIalley. Would you state the names of these people that you 
found in this bookmaking establishment? 

Mr. BuRK. We took no names at all. 

Mr. Halley. Did you file a report ? 

INIr. BuRK. We ran them all out of the place, closed up the place, 
told them to move and get out and stay out. ' I had no grounds to 
make a pinch. 

INIr. Halley. AVhat grounds did you have to tell them to move out 
and get out and stay out, if you had no grounds to make a pinch? 



208 org'Ajstized criime ix interstate oommerce 

Mr. BuRK. After breaking the door down I told them that if they 
didn't move and stay out I %Yould be back there in half an hour and I 
would make a pinch. 

JNIr. Halley. Did they move out in your presence ? 

Mr. BuRK. No. George and I came back home. 

Mr. Halley. Did you come back in half an hour to see if they had 
moved ? 

Mr. BuRK. Yes; with a search warrant. 

Mr. Halley. Where did you get the search warrant? 

Mr. BuRK. I believe the search warrant was made out by a circuit 
judge. I don't remember whether it was Hawthorne, Milledge, or 
who, because I didn't file the affidavit for it. I think George the 
Greek did. Anyway, I didn't file it, 

Mr, Halley. Dicl you go back with Crosby with the search war- 
rant? 

Mr. BuRK. Yes. 

Mr, Halley. What happened at that time ? 

Mr. BuRK. We went back there and the joint looked like a dance 
hall; they moved the crowd out — in other words, everything was 
vacated. 

Mr. Halley, No equipment there ? 

Mr, BuRK, No, 

Mr, Halley, None of the men there ? 

Mr. BuRK. There wasn't a soul in the place. 

Mr, Halley, Were you surprised to find the place empty? 

Mr. BuRK. Well, from common sense, if they were there they sure 
would have got it, 

Mr, Halley, You knew they wouldn't be there when you got back 
with the search warrant, didn't you ? 

Mr. BuRK, Personally I didn't ask for the warrant. I believe it was 
Crosby. 

Mr, Halley. What was the next thing that happened in your 
transactions with Crosby? 

Mr, BuRK. What? 

Mr. Halley. What was the next thing that happened in connection 
with Crosby ? 

Mr. Bltrk. Nothing. I don't belie\'e I went out with him anymore. 

Mr. Halley, Did you go back to the sheriff's office with him? 

Mr, BuRK, No, I think we went up to some hotel again that we 
pinched a couple of days before that. George the Greek and Mr. 
Crosby had made the entrance into the place but they came out with 
nothing, 

Mr, Halley. Did you go to any other hotels or any other places? 

Mr. BuRK, That day? 

Mr, Halley. Yes. 

Mr. BuRK. No. 

Mr. Halley. Did you go with Mr. Crosby then to a total of only 
two places altogether? 

Mr. BuRK. I think he took me up to Collins Avenue around Twen- 
tieth Street and he says, "1 believe that this is n joint over there and 
we will have to get a warrant for it.'' He was just pointing to some 
hotel. 

Mr. Halley. What hotel was he pointing to? 

Mr. BuRK. I don't know. 



ORGANIZED CBIIME IN INTERSTATE COMMERCE 209 

Mr. Halley. If he pointed to a hotel in that area, could you miss a 
joint? 

Mr. BuRK. Could we ? 

Mr. Halt.ey. Does not practically every hotel in that area have a 
bookie establishment in it ? 

Mr. BuRK. I don't know. They could have but I didn't see them. 

Mr. Halley. That is under your jurisdiction ? 

Mr. BuRK. Yes. 

Mr. Halley. You know that most of those hotels have bookmaking 
establishments? 

Mr. BuRK. No, sir ; I don't know that every hotel has. 

Mr. Halley. I did not say every hotel. I said most of the hotels. 

Mr. BuRK. Except that we seen none in any one of them hotels. 

Mr. Halley. What happened after Crosby pointed to the hotel and 
said, "I think there is a joint there ?" 

]\Ir. BuRK. We didn't make any more headway. 

Mr. Halley. Just what did you say ? 

Mr. BuRK. I said, "Do you have a search warrant?" We even tried 
lo go to the back door. I said, "How are we going to get in with this 
front that I have and the front that you have got. We will never make 

it." 

Mr. Halley. Do you remember that Crosby had a map with him of 

some places marked off on it ? 

Mr. BuRK. That is correct. 

Mr. Halley. Wlien did he first show you the map ? 

Mr. BuRK. When we went out to Twenty-thircl Street and stopped 
around Liberty Avenue and the Canal ; it was in front of a floral shop, 
and he kept walking up and down and he said, "Tom, there is place 
back in here," and I said, "Let's go back." So we went back and Crosby 
didn't enter. We noticed that all the doors Avas locked and we couldn't 
hear nothing, and then he said, "How about going out and see that 
other place out there?" He knocked on the doors and nobody came 
out. Then we went to this young lady behind the counter and we 
asked her did she have a key. I said, "My name is Tom Burk of 
the sheriff's office," and she said, "I don't have any keys to that room, 
but I will call the landlord," so she picked up the phone and soon 
Bennie Cohen came and soon Jules Levitt came. 

Mr. Halley. Again at that place ? 

Mr. Burk. Yes. 

Mr. Halley. How soon did they appear after you announced your- 
self to the girl as from the sheriff's office ? 

Mr. Burk. In 10 minutes. 

Mr. Halley. Was there any conversation ? 

Mr. Burk. The conversation was between Mr. Crosby and the 
attorney. 

Mr. Halley. Bennie Cohen? 

Mr. Burk. Yes. 

Mr. Halley. You just pointed to ]\Ir. Bennie Cohen in this room ? 

Mr. Burk. I meant to say that Mr. Crosby is back there. 

Mr. Halley. Mr. Crosby is here too ? 

Mr. Burk. Yes. I was sitting alongside of him all day. 

Mr. Halley. What conversation was there between Bennie Cohen 
and Crosby ? 

Mr. Burk. Oh, I was about 12 to 15 feet away. 



210 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Halley. Getting back to tliis map, didn't Mr. Crosby show you 
a map with about 12 locations marked on it ? 

Mr. BuRK. No. 

Mr. Hallet. How many ? 

Mr. BuEK. Just that one. Then when I went to the girl behind the 
counter and asked if the landlord or landlady was there, these two 
other gentlemen came on the scene and we went in that place to- 
gether. 

Mr. Halley. What did you find ? 

Mr. BuRK. We opened the ice box first and the ice box was warm; 
nothing in it. There were two telephones laying right there on the 
counter. 

INIr. Halley. Nothing at all in there ? 

Mr. BuRK. No. 

Mr. Halley. Did you make any effort to find out from the telephone 
company what service that place had been getting? 

Mr. BuRK. No. 

Mr. Halley. Did you go back and report to Sheriff Sullivan about 
Crosby ? 

Mr. BuRK. No, sir. 

Mr. BuRK. Did you make a report about your investigation? 

Mr. BuRK. Yes. 

Mr. Halley. Did you tell him that Crosby appeared to be looking^ 
for bookmaking establishments? 

Mr. BuRK. There was nothing else said. 

Mr. Halley. Isn't it a fact that both you and Sullivan had insisted 
that Crosby was down here investigating slot machines ? 

Mr. BuRK. That word I didn't hear — slot machines. 

Mr. Halley. What word did you hear ? 

Mr. BuRK. The sheriff told me to go with Crosby and to go to any 
place where he wants to go. There was no name mentioned, circus, 
gambling, or anything else, when we left the courthouse. 

Mr. Halley. You didn't realize that 3^ou were going on a gambling 
raid ? 

Mr. BuRK. I had a slight feeling but I didn't know where in the hell 
he was going. Wlien we go across from the police station he said, 
"Tom, we will turn here at the police station and work Washington 
Avenue." 

Mr. Halley. Isn't it a fact that you went back to Sheriff Sullivan 
and said, "This fellow Crosby here is trying to make cases against 
bookmakers" ? 

Mr. BuRK. No. 

Mr. Halley. Isn't that wliat happened ? 

Mr. BuRK. No. 

Mr. Halley. How long after that did Crosby depart from IVIiami? 
He didn't stay around, did he ? 

Mr. BuRK. If he came in the office I didn't see him. 

Mr. Halley. You never saw him again? 

Mr. BuRK. No. 

Mr. Halley. No more pinches were made? 

Mr. BuRK. Yes, sir. 

Mr. Halley. By Crosby ? 

Mr. BuRK. I couldn't answer that. He never made a pinch. 



ORG'AXIZED CRIME IN INTERSTATE OOIVEVIEROE 211 

Mr. Hallky. You made tliom under liis direction? 

Mr. BuRK. Only one. 

Mr. HALr.EY. No more after that? 

Mr. BuRK. Not with Mr. Crosby, no. 

Mr. Halley. How many automobiles do you own today? 

Mr. BuRK. One. 

Mr. Halley. What kind? 

Mr. BuRK. Chrysler. 

Mr. Halley. '48? 

Mr. BuRK. '50. 

Mr. Halley. When did you buy it ? 

Mr. BuRK. I bought it starch 8, 1950. 

Mr. Halley. Does your wife own an automobile? 

Mr. BuRK. No, sir. 

Mr. Halley. What did you pay for the Chrysler that you own today ? 

Mr. BuRK. I turned one in and got $1,700 on it and put $500 down 
and me and the finance company haye got it yet. 

Mr. Halley. What model Chrysler did you purchase this year? 

Mr. BuRK. 1950. 

Mr. Halley. A New Yorker again ? 

Mr. BuRK. I don't know. I call it a station wagon. 

Mr. Halley. That is more suitable on the farm? 

Mr. BuRK. You can use it on a f ann. 

Mr. Halley. What does a station wagon cost? 

Mr. BuRK. This station wagon I got cost $1,600, and me and the 
finance company still haye got it. 

Mr. Halley. What are the monthly payments on it? 

Mr. BuRK. I think it is $132. 

Mr. Halley. A month? 

Mr. BuRK. Yes. 

Mr. Halley. That is all the questions I haye. 

The Chairman. Just one more question. What was the date that 
you won the $2,600 on the horse? 

Mr. BuRK. I don't know. It was the last week in January or the 
second week in January. 

The Chairman. January what? 

Mr. BuRK. '49. 

The Ciiair.^ian. You do remember the occasion yery well? 

Mr. Burk. Yes. I had a warrant to pick up a man at the race track. 

The Chairman. Before serying the warrant you thought you would 
play the horses a little yourself; is that right? 

Mr. Burk. Yes. In other words, we had the man spotted. He had 
a horse running and I didn't want to interfere with the race. He was 
standing in the paddock after the horses went out. 

The Chairman. You said that when you got the race track you 
met a couple boys? 

Mr. Burk. Yes. 

The Chairman. What boys? 

Mr. Burk. Dobson and his agent. Dobson was a jockey. I don't 
remember the agent's name. I had done a f ayor for Dobson one time. 
I belieye I had a warrant for Dobson one time. 

The Chairman. So you spoke to Dobson, the jockey? 

Mr. Burk. He was standing there. 

The Chairman. By the horse he was going to ride? 



212 • ORGANIZED ORttME IN INTERSTATE COMMERCE 

Mr. BuRK. Yes. 

The Chairman. And he gave you a tip on the horse ? 

Mr. BuRK. He didn't ; the agent did. 

The Chairman. How much did you bet on the horse ? 

Mr. BuRK. I think I put $50 on his nose. 

The Chairman. $50? 

Mr. BuRK. Yes. 

The Chairman. And you got $2,600 back? 

Mr. BuRK. Not quite $2,600. I think he closed around 32 to 1, a 
little over 30 to 1. 

The Chairman. For $50 on his nose you got back $2,600 ? 

Mr. BuRK. I got back about $2,600 ; yes. 

The Chairman. What did you do with that money? 

Mr. BuRK. Kept it. 

The Chairman. You didn't put it in the bank ? 

Mr. BuRK. No. 

The Chairman. Did you have a bank, account prior to 1949? 

Mr. BuRK. In the month of August ; yes. 

The Chairman. Did you have one prior to that time? 

Mr. BuRK. Yes, no. Yes. 

The Chairman. How long did you have that one ? How long before 
that did you have one? 

Mr. BuRK. Oh, way back in 1921. 

The Chairman. Between 1921 and 1949 j'ou did not have any bank 
account ? 

Mr. BuRK. I think it was around 2 or 3 years that I was riding a 
motorcycle at the beach. 

The Chairman. You handled all transactions in cash; is that 
correct ? 

Mr. BuRK. That's right. 

The Chair:man. When was it that you bought the farm ? 

Mr. BuRK. I think it was the 11th day of June. 

The Chairman. What year? 

Mr. BuRK. July. 

The Chairman. Of what year ? 

Mr. BuRK. 1949. 

The Chairman. It was August 1949 that you had $3,000 in tha 
bank ? 

Mr. BuKK. No. 

The Chairman. When did you have $3,000 in the bank? 

Mr. BuRK. About September. 

The Chairman. About September 1949 ? 

Mr. BuRK. Yes. 

The Chairman. At the time you bought the farm you paid $5,000 
in cash? 

Mr. Burk. I paid $1,000 cash and $4,000 I owed. 

The Chairman. Shortly after you put $3,000 in the bank? 

Mr. Burk. Every month the checks would come in and I had close 
to $3,000 and maybe more. 

The Chairman. Just a regular bank account? 

Mr. Burk. Yes ; Coconut (irove Bank. 

The Chairman. How long did you keep it in there? 

Mr. Burk. Some of it is still there yet. . I 



ORGANIZED CRIME IX INTERSTATE OOMJVIERCE 213 

I 

Tlie Chairman. You kept around $3,000 or nuiybe more in tliat 
bank for some considerable time ? 

Mr. BuRK. It ran up and down. Just as fast as the fruit payments 
were coming in, and of course I was paying off bills. 

The Chairman. Did you keep some cash in the tin box you told us 
about? 

Mr, BuRK, No, Once in a while we got cash for the fruit. 

The CiiAiR3ix\N, You did have some money in the box at home 
during the time j^ou had the $3,000 bank account? 

Mr. BuRK. No, 

The Chairman. Why didn't you use that $3,000 to pay something on 
the $4,000 note ? 

Mr. BuRK. I gave them $1,000 cash, and I gave a note for $4,000, I 
believe it was, and I put $1,700 in the bank and I kept the rest. 

The Chairman. You had to pay interest on the note, didn't you? 

Mv. BuRK. That's right. 

The Chairman. Your bank account wasn't drawing interest, was 
it? 

Mr. BuRK. No. 

The Chairman. You paid $500 down and you signed a note for 
$4,000? 

Mr. BuRK. That's right. 

The Chairman. And you have not paid the note yet? 

Mr. Bui'.K. No. 

The Chairman. That is all. Thank you. 

TESTIMONY OF MELVIN J. EICHARD, CITY COUNCILMAN, 
MIAMI BEACH, FLA. 

The Chairman. Do you solemnly swear that the testimony you 
will give the committee will be the whole truth and nothing but the 
truth? 

Mr. Richard. I do. 

Mr. Halley. What is your occupation, Mr. Richard ? 

Mr. Richard. I am an attorney. 

Mr. Halley. Do you hold any official position ? 

Mr. Richard. Yes. I am a city councilman in the city of Miami 
Beach. 

Mr. Halley, How long have j^ou occupied that position? 

Mr. Richard. For a little over a 3'ear. It was June of last year I 
was elected. 

Mr. Halley. For how long a term were you elected ? 

Mr. Richard. Four years. 

Mr. Halley. During your campaign, and after, have you taken any 
public position about gambling on Miami Beach? 

Mr. Richard. Yes; I have strenuously opposed gambling activities 
and the racket syndicates that operate them. 

Mr. Halley. Did you do that during j^our campaign ? 

Mr. Richard. Yes ; I did it during my campaign and in a previous 
campaign in which I was not elected, and during the past 4 or 5 years, 
since I was released from the Navy, I have been actively engaged in 
work of that sort in the city of Miami Beach. 

Mr. Halley. Have you made an effort to ascertain whether or not 
the police department of Miami Beach was performing its duty ? 



214 ORGANIZED OREME IN INTEKSTATE COMMERCE 

Mr. Richard. I have on more than one occasion. 

Mr. Halley. And in that connection did yon have any conversation 
with any members of the police department ? 

Mr. Richard. Yes ; I did. 

Mr. Halley. Did you have any conversations with a man named 
Phil Short? 

Mr. Richard. Yes ; I did. 

Mr. Halley. Would you state when you had such conversation? 

Mr. Richard. I believe the date was May 10 and May 11 of tliis year. 
The first conversation was a telephone conversation, which I recorded, 
and the second conversation was a conversation in my office, which I 
also recorded, but the second recordation was not a good record — it 
was not a clear record. 

I have the telephone conversation with me here, if you would like 
to hear it. 

Mr. Halley. Do you recall the second conversation ? 

Mr. Richard. Yes ; I do recall the content of the second conversation. 

Mr. Halley. But of the first you do actually have the recording ? 

Mr. Richard. Yes ; I have it. 

Mr. Halley. With the permission of the committee, may the witness 
produce the recording ? 

The Chairman. Yes. 

Mr. Halley. Will you produce the recording, please? 

Mr. Richard. Yes, sir. It's in a wire-recording machine. 

Mr. Halley. Before you produce the recording, may I ask you this 
question: Who was Phil Short with whom you had the conversation? 

Mr. Richard. Phil Short is an officer in the Miami Beach police 
department now. I believe he is a lieutenant. He previously was 
chief of police until after this last election. 

Mr. Halley. Will you go ahead with the recording? 

Mr. Richard. Surely. 

(The following is a typewritten transcription of the wire recording 
played to the committee by Mr. Richard :) 

A Voice. Police headquarters. 

Voice. Is Lieutenant Short there? 

Voice. No ; he's not ; he's out in the garden. 

Voice. This is Melvin Richard. Could you get him to call me? 

Voice. Just a minute ; here he comes walking in the door. 

Voice. Hello. 

Voice, Phil? 

Voice. Yes. 

Voice. IMelvin 

Voice. Yes. 

Voice. I just caught you by accident. 

Voice. Uh-huh. 

Voice. Listen, I'm curious about something. Couple of people have been talk- 
ing to me about that article that appeared in the Florida Sun about the Club 
Collins. 

Voice. Yes. 

Voice. According to the article in the Sun, you testified you saw gambling in 
that place at some previous time. 

Voice. That's right. 

Voice. And that you went away and you came back and you attempted to make 
the arrest on this particular night. How come you didn't make an arrest the 
time you were there and saw them gambling? 

Voice. All that I ever saw was poker and skin — that kind of games; that was 
^ or 4 years ago. 

Voice. This was a long time ago? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 215 

Voice. Yes ; that's right. I noticed there was games of one sort and another 
going on there all the time, and I tried to find if there is right now. But to get 
in and find them, that's another question. You have to have search wai-rants and 
everything else. There was a time, you know, we could go into tliose places, 
knock down a door and go on in and there would he nothing said ahout it, but 
nowadays they holler "illegal entry" and all that sort of thing, so you've got to 
get a search warrant, I guess, to get into them. 

Voice. Well, that place isn't 3 years old, is it? 

Voice. Oh, that place has been there for 5 or 6 years, ever since that building 
was remodeled ; when Ben Kaye had that place up there, when he first built it. 
You remember when Ben Kaye built tliat building. That was at least 5 years ago. 

Voice. Uh-huh. 

Voice. How come an arrest wasn't made on that occasion, 3 years ago? 

Voice. Well, I don't remember right now. They was playing what tliey called 
short cards, which was permissible at that time. I went in there because I 
understood there was a crap game running in there, and all that they were playing 
was short cards, and short cards at that time was permissible. 

Voice. What do you mean, "permissible"? Somebody said it was O. K.? 

Voice. Well, they had an O. K. from somebody ; yes. I don't know who from, 
but I was told not to, not to interfere with short card games. 

Voice. Were you chief then? 

Voice. No ; no, that was before ; before that time. 

Voice. Who would give you orders like that? Where would you get them from? 

Voice. Chief of police. 

Voice. You don't know who he got them from? 

Voice. No ; I don't. 

Voice. Well, when you were chief who gave you orders about what should and 
shouldn't be done, what could operate? 

Voice. Melvin, I don't want to get involved here and get somebody in trouble 
now. 

Voice. Well, I'm trying to get to the bottom of this, and I have been trying for 
a long time, and I don't care much who gets in trouble, as long as it's on the 
level. I don't want to do anything dishonest. 

Voice. Well, it always 

Voice. I mean, I didn't call you up for the purpose or with the intention of 
having this conversation with you that led into this. I would like to sit down 
with you and discuss it with you at length. 

Voice. Well, any time you're ready. 

Voice. But I would like to know from you, if you can tell me, who was it that 
gave you orders when you were chief? Somebody gave you orders, about who 
was to operate and who wasn't to operate and when they were to operate and 
when they weren't. 

Voice. Well, as a rule it was Mr. Renshaw that they charged they interfered 
with the hotels, and so forth, and were playing short cards and playing for the 
entertainment of the guests and let the guests play cards in the hotel lobbies, and, 
and I usually took my orders from him. 

Voice. How about bookmaking? 

Voice. Melvin, I would rather talk to you sometime when we're not on the 
telephone about that. 

Voice. All right. How about tomorrow? 

Voice. Anytime you say . 

Voice. Well, let me see, tomorrow is Thursday. Can you get away at lunch- 
time? 

Voice. Yes, sure. 

Voice. How about stopping around my office about 12 o'clock, and I'll see you. 

Voice. O. K., I'll do that. 

Voice. Good. Good. Thank you. 
• Voice. The foregoing was Phil Short, May 10, 1950, in the afternoon. 

Mr. Halley. When did that conversation take pLace? 

Mr. Richard. On May 10, 1950. I recorded the date right on the 
machine, so I wouldn't forget the date. 

Mr. Halley. Was that transcription an accurate report of the con- 
versation ? 

Mr. Richard. It was an accurate report. 

68958— 50— pt. 1 15 



216 ORGANIZED CRIME IN INTERSTATE; COMMERCE 

Mr. Hallet. Did he mention in that telephone conversation the 
name of the person who gave him orders when he was chief of police ? 

Mr. KiCHARD. Yes. He said "Renshaw." 

Mr. Hallet. Who is Renshaw ? 

Mr. Richard. Renshaw is Claude N. Renshaw. He is the city 
manager for the city of Miami Beach. 

Mr. Halley. Did Short come to your office on the next day ? 

Mr. Richard. He did, about 12 o'clock. 

Mr. Hallet. And did you have a further conversation with him? 

Mr. Richard. Yes ; I think I talked to Phil Short from about a half 
hour to 40 minutes. 

Mr. Hallet. Would you state the conversation to the committee? 

Mr. Richard. I recall that I asked Phil Short whether it was pos- 
sible to close down the city of Miami Beach without any difficulty, 
and he said there would be no difficulty at all ; that the chief of police 
could close the town in a matter of hours. And I asked him if that 
was so, why he had never closed it down during the time he was chief. 
He said while he was chief of police he closed it down on two occa- 
sions. 

I asked him what the occasions were. He said that one was author- 
ized and one was unauthorized. 

I asked him if he would tell me what these occasions were. He said 
he closed the town immediately after he got into office, and he was 
immediately advised by higher-ups to lay off. 

He indicated that it was the city manager who called him and told 
him that he didn't want the chief of police engaging in those activities. 
He said that he subsequently closed the town again on orders from the 
city manager. 

I asked him how it was possible for him to close the town on that 
occasion ; exactly what did he do. 

He said he called Detective Pat Purdue, the one-man bookie detail 
of the vice squad, and he told Pat Purdue to go out and close it down, 
and he closed it down in a matter of hours. 

I asked him how it was possible for Pat Purdue to accomplish that, 
and he said all he had to do was to go out and tell the boys that the 
"heat was on" and they closed up. 

I asked him how come he thinks that Chief Simpson hasn't been able 
to accomplish the job; that he has told me time and again that they 
couldn't catch these fellows, and why is it that Pat Purdue finds it so 
difficult catching people in the hotels, in bookie establishments, when 
he was able to close the town, and he said he was an honest cop when 
he was chief of police, and he knew that unless he followed orders that 
he was going to lose his job ; that he thinks that City Manager Renshaw 
is also an honest city manager, but in order to keep his job he realizes 
he nmst do whatever four councilmen tell him to. 

We talked further about the Club Collins raid at some length. He 
gave me a detailed report on it. I don't know if it would serve any 
useful purpose to the committee if I gave you the report. I can tell 
you what happened in that raid. 

Mr. Halley. Would you sununarize it? 

Mr. RiciLVHD. He said he made tliis raid without the autliority of 
the chief of police and without the knowledge of the chief of police; 
that he took a group of men who were lower in rank than he was, 



ORGANIZED CRIME! IN INTERSTATE COMMERCE 217 

and ordered them to meet liim one nio:lit at the cTolf-drivin<»: rano;e on 
Washington Avenue, near, well, it's near Dade Boulevard on Miami 
Beach. 

He said that the only policeman that he confided in was an officer 
on the beat named Raskin, and he said the reason he confided in Raskin 
was because Raskin was acquainted with the territory and was able 
to advise him what should be done, and Raskin recommended that 
the time of the raid should be in the vicinity of 11 o'clock at night; 
that that was the time when most of the racketeers w^ere in the 
vicinity. 

He said he proceeded with these men at about that hour to the 
Club Collins, and when he got there I said to him, "Did you take a 
search warrant?" 

He said, "No; I stopped at the city shop and picked up a sledge 
hammer." 

He said that the Club Collins had a solid-steel door and when he 
got up to the elevator door the door was wide open. He said that 
the i^eople wdiom he ordinarily expected to be hanging out there were 
all gone, and there was a group of wdiat he thought to be "plants" 
sitting in the various seats around the tables. 

They were holding cards, but he said that from the fashion ir 
wdiich they were holding them they obviously w^eren't playing any 
particular game of cards. They were waiting for Phil Short and 
party to arrive, and they were looking over their cards. 

He came in there and there was nothing going on that would 
w^arrant making an arrest. 

]\Ir. Halley. Was there any further conversation about that matter ? 

Mr. Richard. No; there VA^asn't. That is all he told me about the 
Collins Club, the Club Collins raid. 

Mr. Halley. What else did you talk with Phil Short about on 
that occasion ? 

Mr. Richard. I don't recall. There w^as a lot of small talk and 
conversation, but basically what I w^as trying to find out from him 
was who gave orders to keep the town closed and why it couldn't be 
closed, and I think I have given you a good summary of that con- 
versation. 

Mr. Halley. Did you make a study of certain real-estate transac- 
tions in the Miami Beach area? 

Mr. Richard. Yes. It was about 4 or 5 years ago that I became 
curious, because I observed in the newspapers that members of the 
S. & G. Syndicate were purchasing a considerable amount of real 
estate in the Indian Creek area, wdiat is commonly known at Miami 
Beach as "Millionaires' Row," between Forty-fourth Street and 
Fifty-ninth Street. 

At that time we had a committee, the junior chamber of commerce, 
that was created at my instance, a law-enforcement committee. I 
proposed that this committee investigate the ownership of those par- 
cels of land. 

The committee worked with me for a period of time, and then 
because I could give no reason for doing what I was doing — and I 
had no reason at the time ; I didn't know what I was looking for — they 
abandoned the project, and I proceeded to complete it myself. 

I w^orked many hours at the courthouse, and finally developed the 
titles to every piece of property in that Indian Creek area. After I 



218 ORGANIZED CRIME IN INTEKSTATE, COMMERCE 

had all the titles I didn't really know what to do with them. I was in 
Mr. Ford's office one day. It's in the circuit court offices, the clerk's 
office where the records are. I asked Mr. Ford if he had a book indi- 
cating the places where the deeds are returned and, also, if he had a 
book which would show me where tax bills are sent. 

I realized that when an attorney closes a real-estate deal he custo- 
marily has the deed returned to his office, and I was curious to know 
who the attorney was, who might be representing the people in these 
transactions. 

He said he iiad such a book. I checked through it, and I found the 
name of the attorney who was representing the members of the syndi- 
cate who were purchasing property there, and I found some other in- 
teresting information in the return of those tax bills to various people. 

I be M eve I gave you a letter that T sent to Mr. Taylor. 

Mr. Halley. How did you happen to write the letter ? 

Mr. Richard. I wrote this letter to Robert Taylor in an effort to 
take some action in connection with law enforcement. 

Mr. Halley. Who is Mr. Taylor? 

Mr. Richard. Mr. Taylor is the county solicitor for this area. 

Mr. Halley. And under what circumstances did you write to him ? 
Had you talked to him previously? 

Mr. Richard. Yes. I talked to Mr. Taylor on several occasions on 
the telephone. I attempted to make an appointment with him. On 
one occasion I broke an appointment with him, and on another occasion 
he told me he wasn't able to see me. We weren't able to get together. 

I wrote the letter because I didn't really think that seeing Mr. Taylor 
was going to accomplish anything. I thought perhaps a letter of this 
kind, if published, would stimulate him to take some action on the law- 
enforcement scene. 

Mr. Haltj^.y. What is the date of the letter? 

Mr. Richard. June 15, 1950. 

Mr. Halley. Using the letter to refresh your recollection about the 
real-estate transactions, will you go ahead and tell the committee 
what you found ? 

Mr. Richard. I might comment that one of the things that prompted 
the letter was the activities of this committee, Senator Kef auver's com- 
mittee. I made reference to it here, and particularly the action taken 
by Mr. Hogan in New York. 

I called attention to the fact that such action can be accomplished by 
the prosecuting attorney if he wants to accomplish the job. 

Tlie excerpt that I would like to read to you refers to this property 
I cited in this letter : 

I further recommend that you might possibly procure some valuable informa- 
tion from your brother-in-law, Ben Sheparcl. who is the city attorney in the city 
of Miami lieach. He has apparently had considerable dealin.sjis with the S. & G. 
Syndicate members and might be able to give your office a great deal of valuable 
information ccncerning their operations. To illustrate what I have reference 
to, I quote from a portion of an instrument filed by me on May 30, 1947, in a 
cause pend'ng in the circuit court of Dade County, Fla., in chancery No. 96153-F. 
It should be borne in mind, in examining the quotation, that it is customary 
practice, as you well know, for attorneys, in the representiition of clients pur- 
chasing real estate, to have the deeds returned from the recording department 
to their own offices. 

The excerpt from the pleading referred to reads as follows: 



ORGANIZED CRIME IN INTERSTATE. COMMERCE 219 

Before I tell you that, people who own property in that area have 
been seekinfT to have it rezoned through the courts. 

It is significant to note that the fee-simple titles to many of the lots in that 
area are vested in the names of members of the syndicate hereinabove referred 
to and are vested in the names of persons who in some way are directly asso- 
ciated with the city hall in IMiami Beach, Fla. Those fee-simple ownerships 
are set forth in the fullowiiii;- list together with other significant information 
showing to whom the original deeds were returned and to whom tax bills are 
sent: 

Amended plat, first ocean-front subdivision : 

Lot No. 4, the fee-simple owner : Virginia Levitt and Samuel Fried- 
man. The deed was returned to Ben Shepard, who, I explained, was 
city attorne}'. The tax bills were sent to Virginia Levitt and Samuel 
Friedman, 

Lot. No. 5, the fee-simple owner : Harold Salvey. The deed was re- 
turned to Ben Shepard. The tax bills were sent to Harold Salvey. 

Lot No. 13, in the north half of lot 12, the fee-simple owners : Samuel 
P. Cohen and Charles Friedman. The deed was returned to Samuel 
Cohen in care of Sam Kay. The tax bills were sent to Samuel P. 
Cohen and Charles Friedman, in care of Sam Kay. 

Lot No. 14, the fee-simple owner: Ocean Front Apartments, Inc. 
The deed was returned to J. N. Morris, and the tax bills were sent 
to Ocean Front Apartments, Inc., in care of Sam Kay. 

Lot No. 23, the fee-simple owner: Harold Salvey. The deed was 
returned to Copeland, Therrel & Baisden. The tax bills were sent to 
Harold Salvey. 

Lot No. 24, the fee-simple owner: Charles Friedman and Jules 
Levitt. The deed was returned to Copeland, Therrel & Baisden, and 
the tax bills sent to Charles Friedman and Jules Levitt. 

Lot No. 243, the fee-simple owner : Virginia Levitt. The deed was 
returned to Virginia Levitt, and the tax bills were sent to Virginia 
Levitt. 

Lot No. 337, the fee-simple owner : Jules Levitt and Charles Fried- 
man. The deed was returned to Ben Shepard. The tax bills were 
sent to Jules Levitt and Charles Friedman. 

The amended plat of the second ocean-front subdivision is an 
area in the same stretch of ground also known as Millionaires' Row. 

Lots Nos. 1 and 2, the fee-simple owner is William Burbridge, a 
member of the city council. The deed was returned to Copeland, 
Therrel & Baisden, and the tax bills were sent to Ben Shepard. 

Lots 4, 5, and 6 : The fee-simple owner is the Ray Corp., and the 
deed was returned to Copeland, Therrel & Baisden. The tax bills 
were sent to William Burbridge. 

The pleading went on to say : 

It is significant to note that in the case of the members of the syndicate 
the deeds in some instances were returned to Ben Sliepard ; that Ben Shepard is 
the city attorney for the city of Miami Beach and is the attorney of record for 
the city of Miam-i Beach, the defendant in this cause of action. It is further 
significant to observe that Ray Corp., hereinabove mentioned, in its last report 
filed with the Secretary of State of the State of Florida designated as its place 
of business or domicile for service of process Il.SO Washington Avenue, Miami 
Beach, Fla., which is the city hall at Miami Beach, Fla. ; that the officers of 
the corporation 

The Chairman. Wait iust a moment. The Ray Corp.: is that 
R-a-y? ^ i ' 



220 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. KiciiARD. That is R-a-y, sir. Shall I proceed? 

The Chairman. Go ahead. 

Mr. EiciiARD (continuing to quote) : 

that the officers of tlie coiiioration in the said last report were shown as Farber 
Burbridge, president ; William Burbridge, secretary and treasurer, both in care 
of Ben Shepard, attorney, City Hall, Miami, Beach, Fla., and the directors of 
the corpoi-ation were shown as Farber Burbridge, William Burbridge, and Ben 
Shepard, attorney, 1130 Washington Avenue, City Hall, Miami Beach 39, Fla. ; 
that the said William Burbridge named as an officer and director of the said 
corporation is a member of the Miam'i Beach City Council. With respect to 
lots 13 and the north one-half of lot 12 of amended plat, first ocean-front sub- 
division, aforesaid, the fee-simple owners, care of S. Kay, 420 Lincoln Road, 
Miami Beach 39, Fla. ; that the said S. Kay owns considerable property as shown 
hereinabove in the name of Sam Kay and is an officer and director in Ocean 
Front Apartments, Inc., a Florida corporation, which latter corporation is fee 
simple title holder of certain lots as shown hereinabove. Virginia Levitt is 
the wife of Jules Levitt. 

And that was the end of the pleading. 

The Chairman. Mr. Richard, will you make a copy of this letter as 
an exhibit to 3^our testimony and refer to it in any way you wish? 

Mr. Richard. Do you want the entire letter? 

The Chairman. Yes, sir. 

(The letter referred to was marked "Exhibit No. 1"20"' and appears 
in the appendix on p. 750.) 

Mr. Halley. Would you explain whether there was a matter petid- 
ing at that time involving an effort to re-zone certain parts of Miami 
Beach ? 

Mr. Richard. Yes. Several suits were pending, I believe. This 
pleading that I filed was one that I filed in one of those suits and in 
which I asked the circuit court to oust Mr. Ben Shepard as attorney 
for the city of Miami Beach, on the grounds that he represented per- 
sons who were interested in the re-zoning and apparently had an 
interest of some kind himself, as shown by the deeds. 

Mr. Halley. The re-zoning involved the property you have been 
talking about ? 

Mr. Richard. It involved property in that stretch, all of which is 
estate property. That is the same property that Mr. Sullivan in his 
testimony made reference to. 

Mr. Halley. And the city of Miami Beach was opposed to the re- 
zoning ? 

Mr. Richard. Yes. The city of Miami Beach was defendant in the 
case. 

Mr. Halley. And the attorney for the city of Miami Beach was the 
same Ben Shepard ; is that correct ? 

Mr. Richard. Yes, he was. 

Mr. Halley. The same one whom you find representing or at least, 
depending upon the deed, the attorney representing some of these 
cases, the attorney to whom the deed should be sent in these cases? 

Mr. Richard. And as director, I believe, and officer of one of those 
corporations. 

The Chairman. AVliich corporation was that? 

Mr. Richard. That was William Burbridge's corporation. That 
was the Ray Corp. 

The Chairman. AYhat business was tlie Ray Corp. engaged in ? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 221 

Mr. Richard. As far as I know — I don't know, really. I doubt if 
it was in any business. It was probably created for the purpose of 
holding this property. 

Mr. Halley. After you were elected to the city council did you 
have any discussions with Jules Levitt? 

Mr. Richard. Jules Levitt talked to me prior to my election to the 
city council and subsequent to my election to the city council. 

Mr. Halley. Was there any discussion about your campaign ex- 
penses 'i 

Mr. Richard. Yes. Immediately after my campaign in which I 
ran for the council, in 1947, Jules Levitt met me one day at the city 
hall. There were some people present whom I did not know, and 
I don't think he knew them either; they were strangers. (I say that 
because since I have made reference to this story some man called me 
some time ago and told me he was present and heard the remarks that 
passed between us.) 

Mr. Levitt told me that he had a lot of admiration for the campaign 
I ran, that he thought I had done a good job. He said that I didn't 
tell the truth when I stood on the lot and said that he had to hear me 
when he came out of his home at night, that he came out at night and 
stood in the shadows and listened to my speeches. He said the only 
thing he resented was the fact that his sons had very fine grades at 
college and he resented the things I said about their father. 

He said I would be the next mayor of Miami Beach, and that he and 
the S. & G. Syndicate would support me handsomely. 
. He told me that he was going to make the first contribution to my 
next campaign and that he would give me personally out of his pocket 
the total amount that I had spent on my campaign for office that year, 
1947. 

He asked me how much I had spent. I told him, "At least $2,500." 
He said that the first contribution to my campaign would be $2,500 
and the S. & G. Syndicate would support me in addition to that. 

He told me that he had confidence in me and was willing to take 
me around and show me the entire syndicate operations, that he would 
show me their main office and branch offices, that he would show me 
how it operated and that he would convince me that they were an 
important asset to the community, that they served to keep out a lot 
of the ^I'ew York racketeers who would otherwise be in the areas not 
controlled by the local boys. 

He told me that I w^as tired and ought to go on a vacation. He 
recommended that I visit a farm that he had in North Carolina. He 
said that he would arrange to have plane tickets for me. I told him I 
couldn't possibly consider leaving the city of Miami Beach because 
I had spent 30 to 40 days in my campaign and I hadn't practiced law, 
and I had nothing to make a living by. 

He told me that in North Carolina I would earn legitimately in my 
practice of law as much as I would have earned had I remained here. 

I told him that I had a wife and two children and couldn't afford 
to leave. He said that plane tickets would be available for my entire 
family, and we could stay as long as we liked. He said there was a 
lake there and horses and we would have a wonderful time. 

I rejected his invitation. 

'Mr. Halley. Was there any further discussion about how you would 
not lose money while you were away on vacation ? 



222 ORGANIZED CRIME IN INTEKSTATEi COMMERCE 

Mr, Richard. He said that in my law practice I would earn as much 
money as I would have earned had I been in the oiRce practicing law. 
I did not engage in any discussion with him as to how this was to be 
accomplished. 

Mr. Halley, Was there any discussion as to the possibility of mak- 
ing profitable business transactions? 

Mr. Richard. No. I think in a conversation with 3'ou I mentioned 
that, but Jules Levitt was not the man who made that reference to me. 
I did have a conversation with Jules Levitt on two other occasions. 
On one occasion I met him in front of the city hall. I had been 
pushing for some four- wall handball courts in Flamingo Park, and I 
tried to get the council to put them in. I had played handball in the 
Navy, and I thought it was a game that would interest a lot of the 
citizens of the community. All of the members of the council appar- 
ently were reluctant to do it and consequently they paid little, if any, 
attention to my request. I met him in front of the city hall and we 
discussed something about some four- wall handball courts in Flamingo 
Park. I told him that I merely had mentioned it to the city council, 
telling them that I thought four or five thousand dollars would be 
adequate for that purpose, and he said, "I think it is a good idea and I 
will help you." I said, "How can you help me," and he said, "I will 
do what I can." So the next time the city council met it was taken up 
and apparently without any request from anybody — I don't know 
whether Jules Levitt had any influence in accomplishing it or not, 
but I do know that they appropriated a considerable amount of money, 
something like $32,000, and they built very elaborate four-wall hand- 
ball courts in Flamingo Park. They were built of solid concrete 
walls, concrete block with glass in them and very fancy outside ; they 
are very beautiful courts and they have served the city very well. 

Mr. Halley. Mr. Jules Levitt is a member of the S. & G. Syndicate? 

Mr. Richard. So I understand. He did call me on one occasion 
after my election, I am pretty sure that it was subsequent to my elec- 
tion, and he merely askecl me if I would be willing to handle the real- 
estate business of the members of the syndicate. He said that they 
had considerable real-estate business from time to time, and he wanted 
to know if I would be willing to handle it and that it would be strictly 
on the level. I told him that I was reluctant to say that I would be will- 
ing to handle it. I hung up and I thought about it for a little while 
and got to wondering who I could discuss the matter with. I finally 
did call one of the top-ranking newspapermen here and I asked him 
what his impression was. I called John Pennekamp of the Miami 
Herald, and he said that it was just an effort by them to get my name 
on a check, and that it would be very foolish for me to become involved 
with them in any way. I never did any real-estate work for them. 

Mr. Halley. Did you ever do any work for Jides Levitt or Leo 
Levitt, Ben Colien or Sam Cohen or any of the members of the S. & G. 
Syndicate ? Did you ever receive any compensation from any of them ? 

INTr. Richard. No, sir. 

Mr. Halley. Did they ever support you in your election campaigns? 

Mr. RicriARD. No, sir. All of the money that we took was very 
carefully examined and every contribution went into a bank account 
and all moneys were pxpended by check. 

The Chairman. You turned down that offer that was made to ycrii ? 

Mr. Richard. Yes. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 223 

]\Ir. Hatxet. Did you ever have a conversation with Ben Cohen 
about tlie S. & G. Syndicate ? 

Mr. Richard. Yes, I did. It was in what is now the Piado Restau- 
rant, but at that time it was called Murray's. I cannot place the date. 
1 don't know whether it was prior to the election or after the election, 
but I am sure Mr. Cohen remembers. I went in the restaurant and 
sat down alone for lunch, and in a few minutes later, by accident pos- 
sil)ly, Mr. Snedi^ar, who was a city councilman at one time and who 
is now a member of the county commission, walked in and saw me 
at the table and asked to sit down and have lunch with me. I said 
I had no objection. A few minutes later Ben Cohen walked in and 
he asked me the same question and he sat down at the table, too. I had 
never seen either of these men in this place before, althoug;h I had 
been eating there regridarly because the place was immediately across 
the street from my office. 

After we sat there for a few minutes Mr. Cohen opened the con- 
versation with a casual reference to the S. & G. boys. He told me 
that if I fTot to know them I would realize that they are fine boys, fine 
fellows and "that they are the type of people you would be proud to 
have in your home." 

We g-ot into a lengthy discussion and I told him that "they are 
I am sure very nice and fine fellows but they belong in jail because 
they are violating the law." I told him that in the course of my 
experience I had met some very fine people who were in jail for 
committing crimes and that they were very nice people to talk to. We 
continued talking back and fortli and the argument got considerably 
heated and we didn't get along well. The session finally ended and 
we walked out to the curb, out on the sidewalk, and we continued 
arguing. I realized that I was arguing with Mr. Cohen in front 
of people who were passing along on the public street and that it 
was very foolish, so I stopped. I thought it was foolish for me to con- 
tinue such discussion with him out there on the public street. I said, 
"Ben Cohen, you are part and parcel in this thing; you are a part 
of the S. & G.", and Bennie got mad and pointed his finger at me and 
said, "Don't let me hear you say that again. I am not part and parcel 
of the S. & G. Syndicate. I am an attorney and I practice law and 
I have a right to represent whoever I please," and I said, "Bennie, 
I am surprised because only 30 minutes ago you told me that these 
men were people that I would be proud to have in my home." 

Mr. Halley. Did you ever check up and find out if Ben Cohen ever 
represented himself as a part of the S. & G. in connection with their 
business, other than to represent them as counsel ? 

]Mr. Richard. Yes. I have documentary evidence that he has repre- 
sented himself to be the attorney for the S. & G. Syndicate. 

]Mr. Halley. What is that documentary evidence ? 

Mr. Richard. The S. & G. Syndicate, after the local newspapers 
reported in 1949 that they had offices but no license, went down and 
took out a license or licenses, and these are photostatic copies of city 
licenses. ' This one here is for 1947-48 license, S. & G. Investment 
Co., 422 Lincoln Road. The manager is given on tlie license as Leo 
Levitt and the business is given as investments. 

The 1948-49 license is the same thing with the manager again given 
as Leo Levitt. 



224 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The 1949-50 license is of the same type, with the names shown as 
Sam Friedman and Leo Levitt. 

This document is a photostatic copy of a card attached to the 
application for the original license in 1947 which was signed Leo 
Levitt, by Ben Cohen, attorney. It is an application of the S. & G. 
and on the reverse side it was sworn to by Ben Cohen before a notary 
public, in which he states that the contents on the reverse is true. 

The Chairman. Let these be filed as an exhibit to your testimony. 
(Photostats of 1947-48, 1948-49, and 1949-50 licenses were marked 
"Exhibit Nos. 121, 122, and 123," respectively. Photostat of card re- 
ferred to was marked "Exhibit No. 124." These exhibits appear in the 
appendix on pp. 753-754.) 

Mr. Halley. Was there a suggestion made before the City Council 
of Miami Beach recently that the city hall be moved ? 

Mr. Richard. No. There was a letter read by the city clerk. We 
had been looking for additional space because the city hall is not 
quite large enough to accommodate our offices. The city clerk read 
a letter from some person who wasn't named, but in the letter it was 
stated that space was available on an entire floor of a building which 
could be used for operations of the city hall. This letter concerned 
the rental of this space by the city. I asked what the address was 
and he said Fourteenth Street and Washington Avenue, and I 
inquired around and found that it w^as Harry Salvey's building. I 
said tliat I was very much surprised that they would attempt to 
move the city hall right into their own property. 

Mr. Halley. Who is Harry Salvey 'i 

Mr. Richard. He is reputed to be a member of the S. & G. Syndicate. 

Mr. Halley. Is there anything else you would like to say to the 
committee ? 

Mr. Richard. I feel very strongly about the situation that exists 
here. I think we have to do a big job locally. I think this commit- 
tee is doing a splendid job and I think the crime commission should 
be commended for the wonderful job it has done, but I think the juris- 
diction of this committee is not going to reach far enough because of 
its inability to go into the local situation completely and fully. I 
think we need principally a program of education of the people and 
thus avoid this propaganda that has been going on over there l)v these 
public relations men of this gambling syndicate to the effect that 
gambling is essential to the economy of the city, which is a pretty 
tough thing to overcome. 

The Chairman. How old are you, Mr. Richard ? 

Mr. Richard. Thirty-eight. 

The Chairman. Where did you go to school ? 

Mr. Richard. I went to school at the New York University and 
the Florida University. 

The Chairman. Where were you born? 

Mr. Richard. I was boi-n in Brooklyn, N. Y. 

The Chairman. Did you serve in the Navy ? 

Mr. Richard. I was in the Navy 21/2 years. 

The Chairman. How long have you practiced law at Miami Beach? 

Mr. Richard. Since 1934, with the exception of the time I was in the 
Navy. 

The Chairman. As I understand it, Mr. Richard, you lost your 
1947 campaign? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 225 

Mr. Richard. Yes, I did. 

The Chairman. You won in 1949 ? 

Mr. EicHARD. Yes, sir. 

The Chairman. Did the opposition of the S. & G. and criminal 
elements of Miami Beach defeat you in 1947? 

Mr, Richard. Yes. I ran a campaign similar to the one I ran in 
1947. Contributions came to the amount of almost $5,000 and we 
had a campaign headquarters, which in that respect was different 
from the first campaign. 

The Chairman. Did you win ? 

Mr. Richard. Yes, 

The Chairman. And you didn't have them on your side ? 

Mr. Richard. No, sir. 

The Chairman. Did you get a good majority? 

Mr. Richard. Yes. I earned a 4-year term. 

The Chairman. So the idea that one cannot be elected without 
their help and support has been disproven? 

Mr. Richard. Yes, but it was a tough job. 

The Chairman, Was there any recall petition brought against 
you? 

Mr. Richard. Yes, there is a recall petition pending now to oust me 
from office, and that litigation is pending in the Supreme Court of 
Florida at the present time, to throw out the recall. 

The Chairman. Who sponsored the recall ? 

Mr. Richard. The recall was sponsored by a group of people headed 
presumably by a man by the name of Harry Plissner, but I have rea- 
son to believe that the man who was really the front man is a man by 
the name of Charles Gunches who has since been arrested by the FBI 
and is being held in California. 

The Chairman. What was he arrested for? 

Mr. Richard. On some kind of an embezzlement charge. Accord- 
ing to the newspaper article he said that he spent the money betting 
on horses and baseball games. 

The Chairman. He was the chief sponsor of the recall petition ? 

Mr. Richard. That is what I have been told, Plissner, who was 
in the front of this recall movement, has been indicted by the grand 
jury. 

The Chairman, In your opinion was the S. & G. back of the recall 
petition ? 

Mr. Richard. It is my opinion that they supported it, and I estimate 
that $150,000 was spent on the recall. 

Tlie Chairman. What charge did they place against you in the 
recall petition? 

Mr. Richard. The charge was that I pursued activities that were 
inimical to the best interests of Miami Beach and its citizens, but they 
didn't say which citizens. 

The Chairman. What activities were they? 

Mr. Richard. They didn't name any activities. That was the only 
charge in the recall affidavit. 

The Chairman. Who is Mr. Plissner? 

Mr. Richard. Plissner is a man who was active in my campaign and 
who helped me considerably. Since the election he has been indicted 
by the grand jury on a bribery charge. The bribery charge was 
thrown out by Judge Holt on the ground that I was the man who was 



226 ORGANIZED CfRIME IN INTElRSTATEi COMMERCE 

supposed to have been bribed, and Judge Holt said that I could not 
have been bribed because what I was supposed to be bribed for I 
couldn't do. That case is now before the supreme court. 

The Chairman. What was the connection of Plissner in that case? 

Mr. Richard. He is the defendant. 

The Chairman. Tell us more about the story of your relationship 
with Mr. Plissner. 

Mr. Richard. I met Mr. Plissner as a member of the junior chamber 
of commerce. He is not a man that you would expect to be in the 
chamber of commerce, the junior chamber of commerce, because he is 
much older than the age limit. I would guess that he is about 55. 
He appeared at the junior chamber of commerce one night and got up 
on the floor and complained about some specific matter, and, as usual 
and customary in organizations of this type, the president of the 
organization named him as a committee of one to go out and do some- 
thing about it. Nobody expected to hear from him again. 

At the next meeting, toward the end of the meeting, he got up and 
complained about the fact that he had been appointed a committee of 
one to do a certain thing and that he had not been called upon to report. 
He got up and made an excellent report, plainly showing that he had 
done much work and had accomplished some good for the organiza- 
tion. He was retired and apparently had nothing to do and was 
apparently willing to give all of his time to civic activities. He showed 
a real interest in me and my activities and showed a real desire to help 
me in my civic endeavors for the benefit of Miami Beach. 

The Chairman. He was interested in civic activities and he sup- 
ported you in your election? 

Mr. Richard. Very actively. 

The Chairman. Then what happened? 

Mr. Richard. After the election he showed considerable tempera- 
ment. He became angry because I wanted to talk to people on the 
street and because I wanted to return about a thousand telephone calls 
that came in during the first 2 weeks after my election. He said that 
he should handle the business for me, that a politician should have 
someone to handle things for him. We had some very terrific argu- 
ments during the first 2 weeks after the election. He told me that I 
would have to make deals. He said that if I wanted to accomplish 
any of my campaign promises that I would have to have a go-between, 
and he said that the best man would be Will Burbridge because he 
had had considerable experience and knew his way around, and I told 
him that I would not do anything of the kind. He finally worked 
himself up to the point where he suggested deals. I want you to 
know that this happened over a period of 2 weeks ; it ha]:)pened every 
night at my home and every day in my office. This final proposition 
that he made to me was one where he came to me and told me that 
I had to hear him out and let him finish without my saying anything. 
He said that the arrangement was to permit the S and G syndicate to 
run without any effort on my part to stop them ; he said that he realized 
that the newspa]:)ers woidd condemn me for it and for not keeping my 
campaign promises. 

He told me that there would be no objection to my getting up in 
the council meetings and denouncing the S and G and tlie racketeers; 
and I coukl go to the chief of police publicly and condemn him; that 
I coukl go to the city manager publicly and condemn him, but that 



ORGANIZED CRIME IN INTERSTATE COMMERCE 227 

I could not do it privately, but that if I did it publicly they would 
understand the reason for it. He said that I could also arrange raids 
to be staged in scout cars, that I could have the photographers there 
and that j^ictures would be taken and that important people would 
be arrested. He said that it was none of my business what happened 
after the arrests were made. He said that if I did these things the 
people would say that I had done my duty. He said that I could even 
condemn the prosecuting officers for failing to do their duty. 

The final deal he made to me was that he was going to handle the 
punchboard deal in the city of Miami Beach and that one-fifth of 
any income would be paid to me. He said that it would be paid to 
me through legitimate channels. He said that he would make arrange- 
ments so that nobody could ever prove that any of this money was 
paid to me. 
The Chairman. Who said that ? 

Mr. KiCHARD. Plissner. He said that he had made these arrange- 
ments and that if I went along I could probably stay in the city 
council forever because they controlled the votes and the people would 
think that I had done my duty in accordance with my campaign 
j)romises and so forth. 

The Chairman. What did you do about it? 

Mr. Richard. I had a very vicious argument with him, and he left 
on that occasion very angry. I think I had better tell you the rest 
of the story. 

The Chairman. Yes, go ahead and tell us. 

Mr. Richard. Well, I knew Mr. Plissner quite well and we were 
still friendly, and I told Mr. Plissner I was very much concerned with 
the difficulties I was running up against and that I didn't know my 
way around politically; that I didn't know in what direction to go 
or in what course I should go, and I didn't know who to talk to and 
I didn't know who to trust and that I didn't know really how to stop 
this gang situation on Miami Beach. 

I had talked to Mr. Renshaw in the early part of my career after 
I got elected and he assured me that one man could stop the gang 
operation, one councilman, but I didn't — he didn't tell me how and 
I was ashamed to ask him. I wanted him to thing I knew how. 

I told him that under the circumstances I would like to consult with 
the people who would best aid me in a campaign of this type, and I 
told him that I thought the people to help me best were the people who 
helped me get elected, and I proposed to call them together if I could 
get them — the heads of the two newspapers that supported me — the 
Miami Daily News and the Miami Herald, and although at that time 
the Florida Sun had not supported me, I said in all fairness I wanted 
to call them in, too. I wanted to present the problem to them not for 
the purpose of publicity, but to get them to advise me on what am I 
to do. They created something and I wanted some help to tell me how 
to go about ending this situation on the Beach that was bad. 

Well, before I realized it, they were willing to meet at my office 
and with some trepidation I called Mr. Pennekamp and I called Mr. 
Mahoney and Mr. Storer and I offered to meet with them any place 
they wanted at their convenience and it was they who suggested that 
they would be more than willing to meet at my office and they said nc> 
such meeting had ever taken place before. This meeting was sched- 
uled for a specific date, but before that date I had this fight with 



228 ORGANIZED CRIME IN INTERSTATE: COMMERCE 

Plissner and we weren't talking. We had a meeting at the city hall 
the day that this meeting was scheduled to take place at 2 o'clock 
in the afternoon. 

I left the city hall. I believe the meeting was a tax equalization 
board meeting, I am not certain. I left the city hall and went across 
the street to a little restaurant to get something to eat, and Plissner, 
who had been in the city council chamber, followed me across and 
sat down at the table. He asked me if I had any objection to his 
eating there and I told him I had no objection ; that it was a restaurant 
and that he had a right to eat there if he wanted to and we engaged in 
small talk. 

I kept taking my watch out and jQnally he asked me why I was look- 
ing at my watch and I told him that I might as well tell him that 
that meeting that I had arranged for was scheduled for that date at 
2 o'clock, and I told him no, I didn't intend to invite him to the 
meeting, but the more I think about it, the more I think it is a good 
idea. I said, "I am going to tell these men exactly what I have to 
contend with." I said, "I am going to tell them about people like you 
and what you are asking me to do." 

I said, "I am going to tell them, without naming you, that I can't 
get anywhere with any civic project; that I am just going to be a 
bump on a log in a city council and I am going to tell them the prob- 
lems that I have and I am going to ask them to answer me," and I 
said, "If you want to come along, I will put you on the spot and you 
can discuss the matter with them yourself." He said he would be 
glad to come. 

He came to the meeting, and the men attended. Each of the men 
brought men from the editorial staff with them. Mr. Storer did 
not attend. He sent two men from his newspaper. I presented this 
story and I turned it over to Plissner without saying that he was the 
man who had made these proposals, and the argument that ensued 
lasted, I think, for about 2 hours. It was a very vicious argument 
between Mr. Plissner, Mr. Pennekamp and Mr. Mahoney largely. 
When the meeting was over they went away and Mr. Plissner stayed 
behind. He got quite hysterical in the office and he told me that the 
newspapers were seeking nothing more than headlines; that as long 
as they could use me they would, and that I was a damn fool to go 
along with them ; that they would just as quickly break me as carry 
me; and that I owed it to him — that he elected me and it was my 
obligation to see that he got the punchboard deal or some other 
income. 

He suggested what I might do for him and he got so hysterical 
that he shouted something about his sister-in-law needing money, that 
she was in the hospital, and I told him that that was ridiculous ; that 
he was a retired man with a big home and that he had property in this 
area, and I finally didn't know how to get rid of him and I told him 
I had to leave the office and I turned down the lights and walked out 
and he followed me down the street and when we got to the street 
I told him I didn't think we thought alike and I didn't want to see him 
any more and I left, and the next day a friend of mine called me and 
told me that he had been over to this friend and told this friend that 
I had dismissed him from my service. 

The Chairman. When did the recall petition start after that? 



ORGANIZED CRIME IN INTERSTATE: COMMERCE 229 

Mr. Richard. I don't know exactly how long, but I think the re- 
call petition was started about 6 or 7 months after my election. 

The Chairman. How about the indictment? Tell how that got 
started. Make it as brief as you can. 

Mr, Richard. There is a reporter, I believe, in the courtroom w^ho 
came from the St. Louis Post-Dispatch. As a matter of fact, I 
have mentioned this story numerous times before organizations with- 
out mentioning Mr. Plissner and I mentioned it on some radio broad- 
casts and nobody paid much attention to it. 

The reporter from the St. Louis Post-Dispatch came to my office 
and asked me some questions. He published the story and it was car- 
ried in the local papers, and Plissner took it up there — took it up from 
there and commenced denying that he was the man who had made 
the bribe offer. I never named him. He started this denial. He 
went on the air and went before organizations and gave statements 
to the press. He commenced a general denial. That is how the thing 
grew up. 

The Chairman. What happened after that? 

Mr. Richard. Demands were made I name the man and demands 
were made by a radio commentator who had harangued immediately 
after that that some action be taken and finally I offered Mr. Mincer, 
who is the State attorney, that if I were asked to discuss anything 
with the grand jury, I was prepared to come in and tell my story any 
time they wanted to hear it. They sent for me. I talked to them 
and as a result of that talk an indictment was issued. 

The Chairman. And the indictment charged him with what? 
What was the charge ? 

Mr. Richard. It charged him with attempted bribery. I don't 
know. The indictment, according to the newspapers, had some other 
reference. I never have seen the indictment. 

The Chairman. You mean some radio station harangued about that 
incident? 

Mr. Richard. Yes; and they regularly played some recordings of 
harangues of a slanderous character. 

The Chairman, Wliat person on the radio ? 

Mr. Richard. Barry Gray. 

The Chairman, What station was that? 

Mr, Richard. WMIE. 

The Chairman. Who is the owner of that station ? 

Mr. Richard, I understand the station is owned by a man named 
McBride, and I believe his son is the owner of the Continental Press 
Service, 

The Chairman. Do you know whether an application is now pend- 
ing for additional service or additional strength for that station by 
Mr, McBride? 

Mr. Richard, Yes. I talked to Mr. Becker while he was here, 
who was one of the attorneys for the Federal Communications Com- 
mission, and there was a hearing conducted here in which an applica- 
tion was made for, I believe, a permanent franchise or a permanent 
permit. I don't believe they have a permanent permit. 

Senator Hunt. What are the station's call letters? 

Mr. Richard. WMIE. 

The Chairman. And they are now trying to void or throw out the 
indictment on the ground that what they charged that he tried to 
bribe you to do was not in your power to do ; is that correct ? 



230 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Richard. Yes, sir. Senator, I would like to make a comment. 
I have some very extensive wire recordings. I have mentioned this 
to Mr. Halley. They are w^ire recordings which indicate — they don't 
indicate — they state that attempts were made to, by threat and other- 
wise, procure witnesses to testify in behalf of Plissner. The recordings 
make it quite clear that the people who are making these demands 
now are making the statement that w^hat Plissner said was untrue. 

I told Mr. Halley that the recordings were so long, that they involve 
so many conversations that it would be a difficult thing to produce 
here. 

The Chairman. Well, we will analyze them and use them in such 
manner as we think will suit the purpose of this inquiry. 

Now, you mentioned the proposal for a punchboard deal that Mr. 
Plissner made of you; that he and two or three people would have 
control of the punchboards on Miami Beach; is that correct? 

Mr. Richard. Yes. He said three people and he said that the net 
income 

Tlie Chairman. Wlio were those three people ? 

Mr. Richard. He never mentioned any. He never mentioned the 
man who was going to accomplish this. 

The Chairman. What did he say the net income would be? 

Mr. Richard. He estimated it at $750,000 a year. 

The Chairman. A year ? 

Mr. Richard. Yes, sir. 

The Chairman. $750,000? 

Mr. Richard. He said they could be placed in all of the hotels and 
all of the drug stores and all stores throughout the city and they could 
realize an income of $750,000 a year. 

The Chairman. Are there any questions. Senator Hunt ? 

Senator Hunt. No, sir. 

The Chairman. Mr. Richard, this is a very interesting story you 
have given us, one in which I expect you will find counterparts in a 
great many places in the United States. 

As far as the chairman of this committee is concerned — and I am 
sure that Senator Hunt joins me — we are glad to see that you have 
stood up against the assaults that have been made and we wish there 
were more people who would stand up like you. 

Mr. Richard. Thank you, sir. 

The Chairman. That is all. 

The Chairman. Mr. H. G. Taylor ? Will 3^ou come around ? 

TESTIMONY OF HARRY G. TAYLOR, ATTORNEY 

The Chairman. Do you solemnly swear that the testimony that you 
will give this committee will be the whole truth and nothing but the 
truth, so help you God ? 

Mr. Taylor. I do. 

The Chairman. All right, Mr. Halley. 

Mr. Halley. Mr. Taylor, what is your occupation ? 

Mr. Taylor. Attorney at law. 

Mr. Halley. And where is your office? 

Mr. Taylor. 807 DuPont Building. 

Mr. Halley. Miami? 

Mr. Taylor. Yes, sir. 



ORGANIZED CKIME IN INTEKSTATE COMMERCE 231 

Mr. Halley. Were yon served with a siibpeiia by this committee 
to produce certain records? 

Mr. Taylor. Yes, sir. 

Mr. Halley. Have you produced those records? 

Mr. Taylor. Yes, sir. 

Mr. Halley. What records have you produced pursuant to this com- 
mittee's subpena ? 

Mr. Taylor. What I have ; everythino; I have got. 

Mr. Halley. Woukl yon physically present them to the committee 
and describe what you have? 

Mr. Taylor. I gave to your investigator a synopsis of all the files 

I have, and they are my personal files. No records of individuals are 
represented at all. They are office files and correspondence. 

Mr. Halley. You do not have the original records ; is that right ? 

Mr. Taylor. That is right. 

Mr. Halley. You do have office files based on those records ? 

Mr. Taylor. That is right. 

Mr. Halley. And you have produced them ? 

Mr. Taylor. That "is right. 

Mr. Halley. You have with you a copy of a summary ; is that cor- 
rect? 

Mr. Taylor. That is correct. 

Mr. Halley. May that copy be offered in evidence to save the com- 
mittee's time ? 

Mr. Taylor. This is my retained copy. The investigator has the 
original and three copies. 

The Chairman. We will file a copy that Mr. Keily has. 

Mr. Halley. Now, would you introduce into evidence those files? 
The committee will attempt to return them to you within a very 
short time, but the committee would like to inspect them. 

Mr. Taylor. I would like to announce to the committee that this is 
a matter with which we are concerned here. It is one of asserted 
Federal taxes and it involves possibly a criminal proceeding. That 
is the only interest I have in the S. & G. Syndicate or anything con- 
cerning the S. & G. 

We are scheduled for a conference in Washington very shortly with 
respect to that. We have been preparing intensively for that con- 
ference. The removal of these records and so on, not mine in particu- 
lar, but many of the others, will handicap us terribly in the preparation 
for that conference. 

Mr. Halley. I do not believe that the committee would want to 
handicap you in your work, and I do not believe that the committee's 
perusal of the records would take over 24 hours. However, it might 
take a day or so longer. But the records will be reviewed and returned 
to you. 

The Chairman. Mr. Taylor, what time tomorrow or the next day 
will you need the records? We want to cooperate with you in that 
matter and we appreciate the problem you have. 

Mr. Taylor. If the records could be returned to me by Saturday 

The Chairman. The records will be returned to you by Saturday at 

II o'clock. 

Mr. Halley". And the list of items will be your receipt. 
The Chairman. Thank you, Mr. Taylor, for your cooperation. That 
is all. 

68958—50 — pt. 1 16 



232 ORGANIZED ORIME IN INTERSTATE COMMERCE 

Mr. Halley. I offer in evidence as exhibit No. 125 the records sub- 
mitted by Mr. Taylor and identified pursuant to the memorandum 
which will be submitted by Mr. Kiely. 

The Chairman. They will be received and made a part of the record 
as exhibit No. 125. The original records must be returned to Mr. 
Taylor at 11 o'clock Saturday. ( Summary of records referred to was 
marked "Exhibit No. 125," and is on file with committee.) 

Mr. Halley. Thank you. 

The Chairman. It is quite apparent that from the very important 
but slow progress that w^e are making we are going to have to speed 
up considerably if we are to get back to Washington at any time in the 
near future. I think the committee had better meet at 9 o'clock in the 
morning instead of 10 and we will only take 45 minutes for lunch 
tomorrow noon, and go on perhaps later tomorrow afternoon than we 
have today. 

The w^itnesses who have been subpenaed will remain in attendance, 
unless you want to speak with Mr. Halley or some member of the 
staff about the time that you might be needed back here. Perhaps it 
is possible to dispense with quite a number of witnesses until tomorrow 
afternoon, or perhaps until late tomorrow afternoon, if you have other 
engagements that you need to make. 

If any witnesses are in a position where they must get away tomor- 
row afternoon for some important personal or business matters which 
require them to leave at an earlier time, they will also speak to the 
counsel or to the staff and we will try to accommodate them in their 
problems. 

With that the committee will stand in recess until 9 o'clock in the 
morning. 

(Whereupon, at 6:15, the committee recessed until the following 
morning. ) 



INVESTIGATION OF OKGANIZED CKIME IN INTEESTATE 

COMMERCE 

FRIDAY, JULY 14, 1950 

United States Senate, 
Speciai/ Committee To Investigate 
Organized Crime in Interstate Commerce, 

Miami, Fla. 

The committee met, pursuant to recess, at 9 : 27 a. m., in the United 
States District Court, Miami, Fla., Senator Estes Kefauver, chair- 
man, presiding. 

The Chairman. The committee will come to order. The chairman 
would like to inquire in the beginning whether any of the 10 witnesses 
that we have been trying to get to appear before the committee and 
upon whom we have been endeavoring to serve subpenas, have ap- 
peared this morning. If so, we would like to know, so that we can 
arrange our schedule and also determine whether or not we will have 
to rely upon secondary evidence in this hearing to prove some things 
that we would like to prove otherwise by more direct testimony. 

Sam Cohen. Mr. Cohen, I believe, is in the hospital and had an 
operation; is that correct? 

Mr. Halley. Yes. 

The Chairman. So that he is accounted for. Harold Salvey. Did 
Mr. Salvey appear? 

(No response.) 

The Chairman. Charles Friedman. 

(No response.) 

The Chairman. Eddie Rosenbaum. 

(No response.) 

The Chairman. Jules Levitt. 

(No response.) 

The Chairman. William H. Johnston. 

(No response.) 

The Chairman. John Patton. 

(No response.) 

The Chairman. Jack Friedlander. 

(No response.) 

The Chairman. Harry Russell. 

(No response.) 

The Chairman. George L. Bowers. 

(No response.) 

The Chairman. Apparently none of these 10 witnesses are present. 
The Chair might remind them, in case they got the message, tliat they 
are not accomplishing anything by failing to appear here at this hear- 

233 



234 ORGANIZED OEIME IN INTERSTATE COMMERCE 

ing ; that is, they are not accomplishing anything for their permanent 
betterment. 

I believe Mr. Furman has answered a subpena and has certain 
records that he wants identified. 

Mr. Furman, will you come forward ? 

TESTIMONY OF M. G. FURMAN, ACCOUNTANT 

The Chairman. Mr. Furman, do you solemnly swear that the testi- 
mony you will give this committee will be the whole truth and nothing 
but the truth, so help you God ? 

Mr. Furman. I do. 

Mr. Hallet. Mr. Furman, were you served with a subpena? 

Mr. Furman. That is right, 

Mr. Halley. Pursuant to the subpena have you produced certain 
records ? 

Mr, Furman. All of the records I have in my possession. 

Mr. Halley. Will you state what records you have in your 
possession ? 

Mr. Furman. A mass of detail pertaining to personal records of 
Harold Salvey and other working data which I am preparing in my 
capacity as an accountant retained by the attorneys for Mr. Salvey 
in connection with a case, an income-tax case, now pending before 
the General Counsel's Office of the Bureau of Internal Revenue, Wash- 
ington, D. C. 

Mr. Halley. Will you describe more particularly what these records 
are ; what do they cover ? 

Mr. Furman. They cover the years starting January 1, 1945, and 
through to date. I have the detail through 1949 and 1950, I believe, 

Mr. Halley, Will you now present the records to the committee? 
Would you like to turn them over in the brief cases or would you pre- 
fer to keep the brief cases ? 

Mr. Furman. No. I would just as soon turn them over that way, 
so I can get them back intact. They are arranged in a certain order. 

Mr. Halley. Will you take each brief case and describe the 
contents ? 

Mr. Furman. I can tell you generally, because there is an awful 
lot of stuff there. 

Mr. Halley. State it generally, but be complete. 

Mr. FuKMAN. There are tax returns there, copies; there are bank 
checks, bank statements ; there are various instruments of ownership 
of property, mortgages, records of tax paid, and so forth. 

Mr, Halley. I offer in evidence the miscellaneous files produced 
by Mr. Furman relating to Harold Salvey and related tax cases. 

The CiiAiRiNiAN. They will be received and made a part of the record. 
(The files referred to were marked "Exhibit No. 126," and were later 
returned to witness.) Now, the chairman understands, Mr. Furman, 
that you need these records in connection with work that you are 
doing. 

Mr. Furman. Yes, sir. 

The Chairman. We will undertake to see that they are returned 
to you as soon as possible, and I think it will be before th« committee 
leaves Miami. 



OKGANIZED CRIME' IN INTERSTATE^ COMMERCE 235 

Mr. Hali.ey. Do you have any other records of this S. & G. Syndi- 
cate in your possession ? 

]Mr. FiTiisrAN. At one time I had certain general records of th6 
syndicate in my possession wlien I was working with Mr. Bowden, an 
attorney, and also Mr. Taylor. 

Mr. I Ialley. Up to what period did you have those records ? 

]\Ir. FuRMAisr. I have hacl them oiT and on until a few weeks ago — 
lip until last Thursday or Friday when I finished the date I was pre- 
paring for INIr. Bowden. Then I returned the records, and I gave 
my data to INIr. Bowden, the attorney. 

Mr. Halley. Will you state to whom you gave the records ? 

Mr. Furman. To Mr. George K. Bowden, an attorney at law of 
Washington, D. C. 

Mr. Halley. Did you return them to him in Washington or here? 

Mr. FuRMAN. I gave him the results of the various inquiries he 
requested me to make. 

Mr. Halley. AVhat did you do with the records ? 

Mr. FuKMAN. The records themselves, sir, I arranged for the S. 
& G. man to pick up. 

Mr. Halley. What was the name of the S. & G. man who picked up 
the records ? 

Mr. FuRMAx. I think Leo Levitt picked them up. 

Mr. Halley. When did Leo Levitt pick them up ? 

Mr. FuRMAN. Either Thursday or Friday. 

Mr. Halley. Of last week ? 

Mr. FuRMAN. Of last week. 

Mr. Halley. That was a week ago yesterday, or a week ago today ? 

Mr. FuRMAN. That is correct. 

Mr. Halley. Where did he pick up those records ? 

Mr. FuRMAN. He picked them up from my office when I finished 
with them. 

]\Ir. Halley. Do you know where Leo Levitt is today? 

Mr. FuRMAN. I do not. 

Mr. Halley. When did you last see Leo Levitt? 

Mr. FuRMAN. Maybe Thursday or Friday. 

Mr. Halley. Will you please be more definite ? When did you last 
see Leo Levitt? 

Mr. FuR:\rAX. I finished the records on either Thursday or Friday. 
I left word in my office for them to contact the S. & G. office and arrange 
for them to pick up the records, because I was through with them. 
Then I put them in a certain place and told them where they were, so I 
presume he picked them up that day, because he did come over there 
occasionally when I asked for him, because he brought me records that 
I needed in connection with this tax case from time to time. 

Mr. Halley. Did you see Leo Levitt ? 

Mr. FuRMAN. I dichi't personally see him. 

Mr. Halley. Will you state when you did last see Leo Levitt? 

Mr. FuRMAx. I may have seen hiin about 3 or 4 days previous to 
that. 

]\Ir. Halley. Did you actually see him? 

Mr. FuRMAx. Yes, I did. 

Mr. Halley. And when did you last speak to Leo Levitt ? 

Mr. FuRMAx. At that time? 



236 ORGANIZED CRiEVCE IN INTERSTATE, COMMERCE 

Mr. Halley. On the telephone or in any other manner? 

Mr. FuRMAN. I have never talked to him on the telephone. 
' Mr. Halley. Have you had any communication with him since last 
Thursday ? 

Mr. FuRMAN. I haven't. 

Mr. Halley. Will you describe in specific detail the records which 
you turned over to Leo Levitt a week ago ? 

Mr. FuRMAN. There was a general ledger and the general journals, 
and there was one book for 1949, I think it was, called client's ledger, 
customer's ledger, or whatever you w^ant to call it. 

Mr. Halley. Was there a cash book? 

Mr. FuRMAN. Yes. 

Mr. Halley. A book showing disbursements? 

Mr. P'uRMAN. That is right; that is a part of the journals. 

Mr. Halley. Were there canceled vouchers and bank statements? 

Mr. FuRMAN. No. The work I was requested by the attorneys to do 
did not require me to use that data. 

Mr. Halley. The work you were doing had to do with income 
received from the S. & G. Syndicate by the various partners ; is that 
right? 

Mr. FuRMAN. My work had to do with specific questions that the 
attorney put to me, and he was largely concerned in finding out from 
me as an accountant what the actual bookkeeping and accounting pro- 
cedure was. 

Mr. Halley. So you went through the books to find that out? 

Mr. FuRMAN. To see what the bookkeeping routine was. 

Mr. Halley. The attorney was very much interested, was he not, in 
the question as to what the actual income of the S. & G. Syndicate 
members was ; am I right on that ? 

Mr. FuRMAN. He had various reports that had previously been pre- 
pared by the one-time auditor of the S. & G. Syndicate who was killed 
in an accident some time back. He had all of these reports. 

Mr. Halley. As to income? 

Mr. FuRMAN. As to income. 

Mr. Halley. Since that date various claims have been made by the 
United States Bureau of Internal Revenue showing that the income 
was very grossly understated ; is that correct ? 

Mr. FuRMAN. The United States Bureau of Internal Revenue has 
proposed certain adjustments to income, which are being contested. 

Mr. Halley. They are rather large, are they not ? 

Mr. FuRMAN. They are rather large. 

Mr. Halley. You are familiar with them ? 

Mr. FuRMAN. I think Mr. Bowden showed me a memorandum at 
one time which he had in his possession. I don't recall what it was. 

Mr. Halley. Is Samuel Friedman a member of the S. & G. 
Syndicate ? 

Mr. FuRMAN. According to the information that has been sub- 
mitted to me, I would say "Yes". 

Mr. Halley. Is Harold Salvey a member of the S. & G. Syndicate? 

Mr. FuRMAN. So far, on the face of the information submitted to 
me, yes. 

Mr. Halley. Is Jules Levitt a member of the S. & G. Syndicate? 

Mr. FuRMAN. Similarly, as far as I know. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 237 

Mr. Halley. Your answer is "Yes" ? 

Mr. FuRMAN. That is rio^ht. 

Mr. Halley. Is Harry Russell a member, of the S. & G. Syndicate? 

Mr. FuRMAN. He became a member, I think, in March of 1949. 
Prior to that time he never was. 

Mr. Halley. He wasn't a member prior to March of 1949? 

Mr. FuRMAN. That is correct. 

JMr. Halley, He was a member subsequent to March of 1949? 

Mr. FuRMAN. That is right. 

Mr. Halley. Subsequent to March of 1949 he held a one-fifth 
interest ? 

Mr. FuRMAN. I think that is what the records will reflect. 

Mr. Halley. Was Edward Rosenbaum a member of the S. & G. 
Syndicate. 

Mr. FuRMAN. Correct. 

The Chairman. Mr. Furman, the staff of our committee has not 
had an opportunity to examine the records you have brought here. 
We would like to give them that opportunity, and then we would 
like to question your briefly about some of the records. Would it be 
convenient with you to return at 2 o'clock this afternoon ? 

Mr. Furman, Yes; I could arrange that. 

The Chairman, All right, Mr. Furman, we will excuse you at this 
time. You will remain under subpena and will return to the com- 
mittee at 2 o'clock this afternoon. 

Senator Hunt. For the record, Mr. Furman, your initials, please. 

Mr. FuRiMAN. M. G. 

The Chairman. Mr. Jimmy Sullivan, will you come around? 

TESTIMONY OF JAMES A. SULLIVAN, SHERIEE, DADE COUNTY, 
FLA., ACCOMPANIED BY RICHARD M. HUNT, ATTORNEY 

The Chairman. Mr. Sullivan, do you solemnly swear that the testi- 
mony you will give this committee will be the whole truth and nothing 
but the truth, so help you God ? 

Mr. Sullivan. I do. 

Mr. Halley. Will you, Mr. Sullivan, state your occupation? 

Mr. Sullivan. I am sheriff of Dade County. 

Mr. Halley. How long have you been sheriff ? 

Mr. Sullivan. Since January 3, 1945. 

Mr. Hunt. At the outset of this witness' testimony, I would like 
to present into the record a statement by way of an objection on 
behalf of this witness, which doesn't go to the jurisdiction of the 
committee. 

The Chairman. I understand, sir, that you are his attorney? 

Mr. Hunt. That is correct. 

The Chairman. What is your name ? 

Mr. Hunt. Richard M. Hunt. 

The Chairman. Mr. Hunt, the committee is of course glad to give 
you the opportunity to appear with your client. Will you state the 
objection that you have to our interrogation of Sheriff Sullivan? 

^Ir. Hunt. The objection is not so much to the interrogation of him 
as to other matters that affect this witness and the general attitude 
and demeanor of certain members of the committee and its counsel 
in this proceeding, which I would like to reflect in this record. 



238 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. Do you want to make a brief comment? Do you 
want to file this objection ? 

Mr. Hunt. I would like to read the objection. 

The Chairman. How long is it, Mr. Hunt? 

Mr. Hunt. Three pages. 

The Chairman. Can you outline the objection and summarize it for 
the benefit of the committee ? 

Mr. Hunt. I would prefer not to in the interest of exactitude. 

The Chairman. Very well, will you read the objection? 

Mr. Hunt. The Supreme Court of the United States, in Sinclair v. 
V. S. (49 S. Ct. 268, 279 U. S. 263) and in Federal Trade Coinmission 
Y. American Tobacco Co. (44 S. Ct. 336, 264 U. S. 298, etc.) , said : 

* * * And that case shows that, while the power of inquiry is an essential 
and appropriate auxiliary to the legislative function, it must be exerted with 
due regard for the rights of witnesses, and that a witness riglitfully may refuse 
to answer where the bounds of the power are exceeded where the questions asked 
are not pertinent to the matter under inquiry. 

It has always been recognized in this country, and it is well to remember, that 
few if any of the rights of the people guarded by fundamental law are of greater 
Importance to their happiness and safety than the right to be exempt from all 
unauthorized, arbitrary, or unreasonable inquiries and disclosures in respect of 
their personal and private affairs. In order to illustrate the purpose of the courts 
well to uphold the right of privacy, we quote from some of their decisions. 

In Federal Trade ConimisMon v. American Tobacco Co. (264 U. S. 298, 305, 306, 
44 S. Ct. 336, 337 (68 L. Ed. 696, 32 A. L. R. 786) ), this Court said : "Any one who 
respects the spirit as well as the letter of the fourth amendment would be loath 
to believe that Congress intended to authorize one of its subordinate agencies to 
sweep all our traditions into the fire (Interstate Commerce Commission v. Brim- 
son, 154 U. S. 447, 479 ; 14 S. Ct. 1125, 38 L. Ed. 1047), and to direct fishing expedi- 
tions into the private papers on the possibility that they may disclose evidence of 
crimes. We do not discuss the questions whether it could do so if it tried, as 
nothing short of the most explicit language would induce us to attribute to Con- 
gress that intent. * * * It is contrary to the first principles of justice to 
allow a search through all the respondents' records, relevant or irrelevant, in 
the hope that something will turn up." 

The sovereign legislative power delegated to this committee by Sen- 
ate Resolution 202 is definitely limited and restricted to the making of a 
study and investigation of the subject matter of the resolution. 

Even in the trial of a criminal case, the person accused is presumed 
innocent until the contrary is made to appear to the exclusion of a 
reasonable doubt. The judge and jury approach their respective trial 
functions in the reception and consideration of evidence with open, 
fair, and impartial minds, and accord temperate and considerate treat- 
ment to the accused. 

The proceedings before this committee do not closely approach the 
seriousness and finality of trial where judgment and sentence follow 
the verdict. This committee can only conduct a study and investiga- 
tion through the use of fair and reasonable procedural means, con- 
sistent with the power conferred and the rights of citizens compelled 
to appear and testify by force of sovereign subpena. 

The committee and its counsel, we believe, have transcended the 
limits of committed authority, and violated the constitutional rights 
of citizens of this country in the following instances : 

1, Committee counsel caused an ex-deputy sheriff (Howden) to 
testifv to an inadmissible statement of another (wlio denied it) that 
the other person had made a very damaging remark concerning a fine 



ORGANIZED CRIME' IN INTERSTATE COMMERCE 239 

lady, wife, and mother of this city, whose husband is a witness, not a 
defendant, before this committee. 

Committee counsel well knew that the person to whom the remark 
was to be attributed held it to be false, and he further knew, as an 
accomplished examiner, that this evidence would not be received in 
a court of law under the rules of evidence; but irrespective of his 
complete awareness of proclaimed falsity and evidentiary impro- 
priety, he deliberately, heedlessly, and unnecessarily brought about 
a public smearing and indictment against an innocent lady which, 
as he doubtless intended, has brought great grief, hurt, and suffering 
to her and her two children, 

2. The third-degree attitude and partisan slant of questions pro- 
pounded by committee counsel clearly reflect the characteristic of a 
prosecutor boring in for the kill, rather than the calm, courteous, 
thoroughgoing demeanor of a quasi- judicial, official intent upon a fair 
and impartial discovery of facts. 

The studied sarcasm and the I-don't-believe-you deportment of 
committee counsel betray him as having already chosen sides and 
alining himself on the issues before ever hearing the testimony of 
witnesses most vitally concerned in the proceeding. Such is not con- 
ducive to a fair study and investigation, nor is such demeanor and 
actions of counsel fair and just treatment of citizen-witnesses brought 
before this body. 

3. The chairman of the committee is quoted in the morning paper 
as having stated publicly that, "We understand Sheriff Sullivan 
has been a very poor boy but he's pretty well off now. We're going 
to ask pretty direct questions." This statement, if true, indicates a 
state of mind on the part of the chairman which prejudges and con- 
victs the witness of corrupt acts before his testimony is even heard 
or his records inspected, and bespeaks a mental adoption of the anti- 
Sullivan smear campaign of the two local dailies and Mr. Drew 
Pearson. Such statements cannot possibly aid the hearing record of 
this proceeding, and only serve to (a) damage and slander the wit- 
ness in his name and official position, and (h) reflect a prejudgment 
which is contrary to American traditions and rules of law in judicial 
or quasi-judicial proceedings. 

This temple of justice should not be perverted into an inquisition 
whipping post ; the witness, an American citizen holding high office in 
his community, should not be made a public whipping boy ; and the 
committee should not come into this State and city, aline itself with 
the political enemies of the witness, and become the sovereign execu- 
tioner of the witness and his family under the aegis and shield of 
assumed, but undelegated, sovereign power. 

The witness has responded to committee process and is prepared to 
answer all questions put to him by the committee and to submit docu- 
mentary proofs upon both personal life and official acts. He expects 
to receive fair, proper, and unprejudiced treatment at the hands of the 
committee. 

The witness and his attorney hold the committee and its counsel 
in the highest personal, professional, and official respect, and fully 
respect the process and dignity of the Senate and of this committee. 

The witness will not, however, submit lightly to abuse or indignity 
in the course of the committee's exercise of committed power to study 
and investigate on behalf of the Senate of the United States. 



240 ORGANIZED CRIME IN INTERSTATE COMMERCE 

In closing I would like to say that nnless Mr. Halley submits before 
this hearing evidence which would be admissible in a court of law 
in connection with the left-handed and completely hearsay smear of 
Mrs. Sullivan yesterday, I would like to move the committee, at the 
conclusion of the hearing, to strike this testimony from the record 
to the end that innocent persons will not be made to suffer. 

The Chairman. ISIr. Hunt, you can make any motion at any time 
on behalf of any client that you represent. The committee is glad to 
have you make your statement which is now a part of the record. 

I think I should call your attention to the fact that of course it 
is required of us by the resolution under wdiich we are operating that 
we consider and look into corrupting influences that organized crime, 
operating in interstate commerce, may have on governing officials or 
law-enforcement officers. 

We acknowledge that in an inquiry of this kind, it is very difficult 
to do that in that some person's name might not be brought out and 
to whom some injustices may be done, and it is with that in mind that 
I have announced at the beginning of any session that if anyone felt 
that their name had been improperly used or that they had been im- 
properly accused, this committee would be ready and willing to hear 
them. 

Just a while ago the chairman received a telegram — it may have 
been delivered last night but I just got it a little while ago — in which 
Mr. Plissner, about whom Mr. Richard testified yesterday, wanted to 
make some explanation following Sheriff Sullivan's testimony. 

We expect to call Mr. Plissner to make any explanation he wishes. 

The committee has gone to a great deal of trouble in having a pre- 
liminary closed hearing in order to try to ferret out the relevant testi- 
mony to our inquiry in which we feel the Senate would be interested, 
and also the Congress of the United States, 

I should call your attention, Mr. Hunt, to the fact that the commit- 
tee spent two very full days — Senator Hunt and the chairman — in 
going over in executive session a great many conditions that are 
alleged to exist in Dade County and in this section of Florida, and 
most of which testimony has not as yet been made public. 

At that time the committee undertook to call in Sheriff Sullivan 
to testify. Sheriff Sullivan was away, I believe, on a fishing trip 
on the west cojast. The subpena was not served upon him. Sheriff 
Sullivan afterward wired the committee that he didn't know about the 
fact that he was wanted or that his testimony was desired, and tliat 
he was ready and willing to appear at any time. I think that was 
the substance of your telegram ? 

Mr. Sullivan. Yes, sir. 

The Chairman. So that is the situation. 

Mr. Sullivan. I was informed, Senator, however, that there was 
no subpena out for me, and that my office informed the caller, who- 
ever he may have been, that I could be gotten there right shortly 
if it was so desired. 

The Chairman. I can only report what was reported to me. Sheriff 
Sullivan. 

I know the chairman did ask for your aj^pearance at that time, and 
that Ave were informed botli at your liome, I believe, and at the 
office that you were not available and they didn't know where to find 



ORGANIZED CRIME IN INTEKSTATOE: COMMERCE 241 

you and they couldn't reach yon, and wouldn't be able to get you to 
appear when we were here at that time. 

I ordered that a subpena be issued for you — and frankly I can't 
say whether it was served or whether or not it was served or what 
effort was made to serve it. But inquiry was made and we were in- 
formed that we could not find you at that time. 

Mr, Halley, do you have any comment that you would like to make 
i in reply to Mr. Hunt? 

]\Ir, Haixey. If the Chair will excuse me from commenting, I pre- 
fer not to. 

I do think I should state that the law with respect to Senate com- 
mittee hearings is that they are not restricted to the testimony that 
would be admissible in a court of law. They are restricted to hearing 
1 testimony in hearing which in the good judgment of the committee 
! is fair testimony and apt to bring out the facts and the truth, but 
I they are not bound by the strict rules of hearsay or any of the other 
strict rules of evidence. 

I would further simply like to point out with respect to the law that 
the testimony to which you referred, even in a court of law, would 
not be considered hearsay. 

Mr. Hunt. I disagree with you, but very respectfully, sir. 

The Chairman. Certainly the cases do not limit a congressional 
committee to the type of testimony that is required in a court of law. 

All right, ]\Ir. Halley, will you proceed to examine Sheriff Sullivan ? 

Mr. Halley. ]Mr. Chairman, Sheriff Sullivan appears to have with 
him a nmnber of records and I would like, with the committee's per- 
mission, to ask Sheriff Sullivan if he w^ould like to make a statement 
before he is questioned. 

Mr. Sullivan. Well, first I have a letter that I would like to read 
and make a part of this record. 

The Chairman. You may do so. 

Mr. Sullivan. This is a letter to Senator Kef auver, chairman of the 
Special Committee To Investigate Organized Crime in Interstate 
Commerce. 

The Chairman. What is the date of that letter ? 

Mr. Sullivan. July 6, 1950. 

Mr. Hunt. This is in answer to your last letter. 

The Chairman. I think prior to the reading of this letter, the letter 
that the chairman of the committee wrote Mr. Sullivan will be in- 
cluded in the record. 

(The letter referred to, dated June 26', 1950, is herewith incorpo- 
rated :) 

United States Senate, 
Special Committee To Investigate 
Organized Crime in Interstate Commeiece, 

June 26, 1950. 
Sheriff Jimmy Sullivan. 

Dade County, Fla. 
Dear Sheriff Sullivan ; The United States Senate has designated this spe- 
cial committee to investigate organized crime in interstate commerce. To ac- 
complish its objectives, the committee proposes to obtain as much information as 
possible concerning tlie operations of organized criminals and racketeers in every 
portion of the country. It is hoped that by compiling this information and cross 
referencing it, the committee can discover leads which might not be obtained 
in investigations confined to particular areas alone. 



242 ORGANIZED CR'IME IN INTERSTATE COMMERCE 

For this reason, the committee is writing to a number of prominent persons 
throughout the United States for the purpose of ascertaining their views on the 
activities of organized criminals in their areas. The committee is particularly- 
interested in activities in which interstate communication facilities are used, 
or in which an investment is made in either legitimate or illegitimate enterprises 
of moneys illegally obtained in other areas, or in which some evidence of inter- 
state activity can be found. In addition, we are, of course, interested in viola- 
tions of narcotics, counterfeiting, and other Federal laws. Where there is evi- 
dence such criminals are protected with the connivance of law-enforcement 
othcers or other public otHeials. the committee will welcome your advice. 

The committee would very much appreciate receiving from you, in such detail 
as you see fit, a statement of conditions as you have observed them relating to 
the above matters. This statement will serve as a background for further 
inquiries and for investigations or hearings. Any infoi'mation furnished wiU 
be kept confidential if you so desire. 

We know that this request will impose upon both your time and energies, but 
we are assured that the sub.iect matter is one in connection with which we have 
your full interest and cooperation. This committee realizes that the task before 
it is of such great size that it can be accomplished only through the joint efforts 
and with the help of all those who are interested in stamping out organized crime 
throughout the Nation. 
Sincerely, 

EsTES Kefaxjver, Chairman. 

Mr. Sullivan (reading) : 

Hon. EsTEs Kefauvek, 

Chairman, Special Committee To Investifiate Organized Crime in Inter- 
state Commerce, United, States Senate, Washington, D. C. 

Honorable Sir : I beg to acknowledge receipt of your letter of June 26. Your 
first inquiry is addressed to activities of organized criminals in which interstate 
communication facilites are used, or in which an investment is made in the area 
of moneys illegally obtained in other areas, or in which some evidence of inter- 
state activity can be found. 

The only interstate communication facilities used by persons engaged in race- 
track booking activities which have come to our attention are the wire services 
which already claimed the attention of your committee, and which have on 
several occasions litigated their contentions in circuit courts and supreme court of 
this State. 

As to investments in this community of moneys, illegally obtained in other 
areas, this office has no information. From time to time a local law-enforce- 
ment league, and current, a crime commission have cliarged that one or more of 
the Miami Beach Hotel properties are owned by persons from other States who 
formerly were engaged in illegal enterprises or associations, but whether evidence 
exists to support these charges is a matter of which this office has no knowledge, 
since no citizen of the county, crime commission, or otherwise has ever presented 
my office with evidence, affidavit, or supported charge in this direction. It has 
been my experience that the accusations and charges of the so-called crime com- 
mission have consistently been broadcast over local radio stations and pulilished 
in local newspapers in sensational fashion, rather than being placed before 
any warrant-issuing officer or body, such as the county grand .iury, the State 
attorney, the county solicitor, any judge of the circuit court, the judge of the 
criminal court of record, the county judge, or any of the justices of the peace. 
My office has many times publicly solicited evidence upon which to ground crimi- 
nal charges against any of the persons mentioned in these radio broadcasts and 
newspaper articles, but we have yet to interview the first citizen, or to receive the 
first affidavit in connection therewith. 

My office is not apprised of violation of narcotics, counterfeiting, and other 
Federal laws which fall witliin the province of Federal law enforcement agencies, 
except that we give full cooperation to tlie investigation and appreliension activi- 
ties of tlie Federal authorities, and when oxu- officers detect such offenses or 
offenders, the proper Federal authorities are immediately notified and prompt 
action taken. 

It has never come to my attention that law enforcement officers of this county 
are in connivance with any chiss of criminal or racketeer. 

You invite my views relating to conditions in tliis county touching upon the 
subject matter of your letter, wiiich are lierewitli presented, viz: 

(a) It is my definite opinion that this county has been unjustly scandalized 
and maliciously slandered by the local crime commission and the two daily news- 



ORGANIZED CRIME: IN INTERSTATEi COMMERCE' 243 

papers of Miami in their sensational newspaper-selling charges of the existence 
of a criminal and racketeer situation in Dade County which does not exist In point 
of fact. Beinij; a resort community, with hundreds of thousands of tourists 
visiting us each year, any reasonable-minded person would know that some of 
the undesirables ot the Nation will be among tiie desirables who visit us, but it 
does not at all follow, as seems to be the theme song of the newspapers and their 
crime commission, that the entire county is bad, or that the people of this county 
are bad, merely because of the presence within our borders of a liandful of these 
undesirables. Naturally, tlieir coming here is to be, and has been, discouraged 
by my office through use of legal processes, wherever same could be applied in a 
legal manner ; however, the complaints of my critics seem to be that I have been 
unwilling to breach my $25,000 fidelity bond and my oath of office by adoption of 
illegal methods in the handling of this problem. We have never refused or 
delayed, and shall never refuse or delay, to effect an arrest or execute a warrant 
for anyone where the proper initiating affidavit is made out and the warrant 
delivered to my office for service ; and as above indicated, I have publicly solicited 
information and evidence, and have offered the full cooperation of my office to 
the end of eliminating the undesirable element from this county. 

(b) Approximately $200,000,000 per year is gambled in this county through 
legalized pari-mutuel machines at the horse and dog tracks, which are operated 
by the State of Florida in conjunction with the track owners. This condition 
seems to surcharge the atmosphere with the spirit of betting, and to incline public 
opinion considerably in favor of the placing of bets on horse and dog races and 
therefore reacts against a strict enforcement of the State gambling laws relating 
thereto. This situation renders the task of my office in enforcing the gambling 
laws, particularly against bookmaking, an extremely difficult one, as we have 
little, if any, cooperation from the public in the furnishing of evidence or filing 
of complaints against the operators of this particular class of illegal activity. 
The question is often asked as to why it is sinful and against the law to bet $10 
on Mollio-0 in the fifth race outside the wooden fence of a race track when the 
person placing the bet can bet the same amount on the same horse and in the 
same race within the confines of the track, and still be a good citizen. However, 
i realize these considerations are for others and not for the sheriff of a county, 
since it is his duty to enforce the law as he finds it upon the statute books. This 
I have consistently done to the very best of my ability. 

For your information, in the year 1948 my office handled 279 gambling cases, 
or an average of 23i/2 cases per month. In the year 1949, my office handled 574 
gambling cases, or an average of 47^/^ cases per month. With the recent addi- 
tion of several men in my criminal department, we are making an all-out effort 
to stamp out this and other classes of gambling in Dade County ; and in this 
regard, my office receives the fullest assistance and cooperation of the governor, 
the State racing commission, the State beverage department, and other State, 
county, and municipal enforcement oflScers. 

I was of the opinion in 1944, when I first became sheriff of this county, and am 
still of the opinion, that the only real solution to the local gambling problem 
lies in the adoption of a modified form of legalized gambling where all betting, 
not only on the ract tracks but off the race tracks, would be permitted under 
strict State sui)ervision with the State collecting the revenue for the benefit 
of the taxpayers and public institutions of the county. Through such means, 
I believe that gambling racketeers would be promptly put out of business, 
necessary street improvement, sewerage installations, public schools, and other 
buildings could be provided, parks could be beautified, and the public welfare 
better served generally, without a dime's additional tax expense to the taxpayers 
of the county. I realize that a large number of persons in the county stand in 
opposition to such a plan, but it is my belief that if the same were submitted to a 
referendum selection of taxpayers and citizens of Dade County, the oppositionists 
would find themselves in the minority at the voting booths. 

Notwithstanding the personal views above expressed, as sheriff of Dade 
County, I have been, and will continue to be ever mindful of my official duty as 
regards gamblers and other types of lawbreakers, and will vigilantly enforce 
the gambling laws, as well as other laws pertaining to criminal violations as 
and when the same occur and my office is able to detect and apprehend the 
offender. 

You are at liberty to handle this letter on a confidential basis, or otherwise, in 
your own discretion. 

Very truly yours, 

Jimmy Sullivan, 
Sheriff, Dade County, Fla. 



244 ORGANIZED CRIME IN INTERSTATE COATMERCE 

Mr. Halley. Is there any further statement you want to make? 

Mr. Sullivan. Mr. Halley, I have some records of our office that 
I would like to present to this committee. 

However, along the same facts that I am speaking of here, the letter 
that I just finished reading, I would like to present the winter term 
grand jury report of 1948, tlie articles that are marked on page 5. 

The Chairman. The report will be made exhibit No. 127. (Appen- 
dix, pp. 755-759.) You can read any part of it you want to. 

Mr. Sullivan. It is short. I will read it. 

The Chairman. All right. 

Mr. Sullivan (reading) : 

It has long been a known fact that law-making bodies cannot successfully 
legislate morals. The best example of this statement was the late lamented 
Prohibition Act. Impossibility of enforcement led to a general breakdown in all 
law enforcement. We are faced today with the same situation on the question 
of gambling. This grand jury has pondered the question thoroughly and deeply ; 
it has gone through every phase of gambling activities, from bookmaking to 
mobster infiltration. The consensus of opinion of the grand jurors has boiled 
down to the fact that inasmuch as we find general laxity in the enforcement of 
the gambling laws, and that inasmuch as pari-mutuel betting has been legalized 
by the State, and that furthermore if all who desire to bet were compelled to 
attend the various pari-mutual establishments they could not be accommodated 
we believe that a solution would be to legalize bookmaking where bets may be 
made and coursed through whatever pari-mutual establishment w;is operating 
at the time, thereby gaining for the State the revenue that it now loses through 
sneak bookmaking. 

Such legalized bookmaking stations should be licensed and controlled by the 
State, county, or municipal governments, whichever the legislators, in their 
judgment, may deem best. Policing of such a set-up should be put into the hands 
of the State racing commission, and the funds of such policing should be derived 
from the revenue received by the State racing commission. 

Now, I would like to read some notations here that were received by 
me, such as correspondence under date of February 4, 1947. 

The Chairman. You can file all of this as part of the record and 
read whatever you want to, if you wish. 

(Correspondence referred to was read into record. See below.) 

Mr. Sullivan. This is from the attorney general of the State of 
Florida. 

The Chairman. Wlio was the attorney general at that time? 

Mr. SuLLrv'AN. Tom Watson. 

In leading up to this letter from the attorney general of the State 
of Florida I would like to read here just one of the many articles that 
came into my office through sneaks and through the back door and in 
many other ways. It is not open and aboveboard, and was not done in 
a helpful manner or in a manner to help our office or to help our 
county ; just plain politics. Here is the copy : 

January 22, 1947. 
Mr. James Sullivan, 

Sheriff of Dade County, Fla., Miami, Fla. 

Deau Sir: As you must already know, extensive, open, illegal gambling is now 
being conducted at the Sunny Isles Casino, Dade County, Fla. 

The Law Enforcement League of Dade County demands that you do your duty 
and stop this notorious violation of law. 

As citizens of Dade County, we will not be satisfied with token raids or other 
inett'ectual actions on the part of your office. You have adeipiate means at your 
command to enforce the law, as outlined in swtion 144.02 of the Florida Statutes, 
and we demand that this be done immediately. 



ORGANIZED CRIME IN INTEESTATE COMMERCE 245 

Moreover, we extend to you all the facilities of our organization and agree to 
furnish all additional deputies needed for this purpose. 
Sincerely, 

George Light, 
Secretary, Laiv Enforcement League of Dade County, Fla. 

There was a copy of this sent to the grand jury, which was in opera- 
tion, and to the Miami Herald and Miami Daily News. All for no 
good purpose. 

The Chairman. What is tlie date of that letter, did you say ? 

Mr. Sullivan. The date of that letter was January 22, 1947. 

I have a letter here to the Law Enforcement League of January 27, 
1947: 

Law Enforcement League, 

Miami, Fla. 

Gentlemen : I acknowledge receipt of your letter of the twenty-fourth instant, 
copies of which you delivered to the local press. 

Deputies have visited and checked operations at the place of business men- 
tioned in your letter and found no law violations. You may have defeated your 
professed purpose by your haste for publicity. 

Since the first week of my administration as sheriff, certain individuals and 
organizatiotns have beset and harassed this office in the public press for the 
purpose of embarrassing and intimidating me in the performance of my official 
duties. Time after time I have solicited the complaining and allegedly informed 
person to persons to subscribe to the affidavit for search warrant prescribed in 
chapters 933.04, 933.05, and 933.06, Florida Statutes Annotated, but to date no 
one has been willing to do more than write a letter for newspaper purposes or 
send in anonymous telephone calls. The sections of law to which I refer are as 
follows : 

"933.04 Affidavits.— The right of the people to be secure in their persons, 
houses, papers and effects against unreasonable seizures and searches shall not 
be violated and no search warrant shall be issued except upon probable cause, 
supported by oath or affirmation particularly describing the place to be searched 
and the person and thing to be seized." 

"933.0.5 Issuance in Blank Prohibited. — A search warrant cannot be issued 
except upon probable cause, supported by affidavit or affidavits, naming or de- 
scribing the person, place or thing to be searched and particularly describing 
the property or thing to be seized ; no such warrant shall be issued in blank and 
any such warrant shall be returned within 10 days after issuance thereof." 

"933.06 Sworn Application Required Before Issuance. — The judge or mag- 
istrate must, before issuing the warrant, have the application of some person 
for said warrant duly sworn to and subscribed, and may receive further testi- 
mony from witnesses or supporting affidavits, or depositions in writing, to sup- 
port the application. The affidavit and further proof, if same be had or re- 
quired, must set forth the facts tending to estalilish the grounds of the appli- 
cation or probable cause for believing that they exist." 

Chapters 901.01 and 901.02, Florida Statutes Annotated, provide : 

"901.01 Judicial Officers To Be Committing Magistrates. — All judicial 
officers of this State shall be conservators of the peace and committing magis- 
trates, and may issues warrants against persons charged on oath with violating 
the criminal laws of the State, and may commit offenders to jail or recognize 
them to appear before the proper court at the next ensuing term thereof to 
answer the charge, or may discharge tliein from custody, according to the cir- 
cumstances of the case and may require sureties of the peace when the same 
has been violated or threatened. When a complaint is made to a magistrate 
that an offense has been committed within his jurisdiction, he shall examine on 
oath the complainant and any witnesses he may produce. 

"901.02 When Warrant of Arrest To Be Issued. — A warrant may be is- 
sued, for the arrest of the person complained against if the magistrate, from the 
examination of the complainment and the other witnesses, if any, has reasonable 
ground to believe that any offense was committed within his jurisdiction and 
that the person against whom the complaint was made committed it ; provided, 
however, that a warrant may be issued by said magistrates for the arrest of 
the person complained against, upon presentation to him of affidavits sworn to 
by the complaining witness or witnesses before the prosecuting attorney, pro- 



246 ORGANIZED CKIME IN INTERSTATE; COMMERCE 

vided such prosecuting attorney is authorized to administer oaths as a notary 
public or otherwise." 

Chapter 30.15, Florida Statutes Annotated, requires this office to execute 
process of the supreme court, circuit court, county court, criminal court of record 
and justice of the peace courts. By other statutes, we are required to execute 
process of the civil court of record, the county judge's court, the court of crimes 
and the juvenile court. 

Chapter 30.19, P^lorida Statutes Annotated, prescribes a penalty for failure 
to execute any writ or other process, civil or criminal, legally issu9d and directed. 
Chapter 144.01 authorizes the arrest, without warrant of any person who is in 
the disturbance of the peace. 

Chapter 901.15 provides for arrest without warrant by a peace officer when a 
felony or misdemeanor has been committed in his presence, or, in the case of 
felony only, when a felony has been committed and the officer has good reason to 
believe the person to be ari-ested committed it. This chapter also requires arrest 
upon warrant duly issued. 

Article 5, section 15, of the Florida Constitution, states that the duties of a 
sheriff "shall be pre.scribed by law." 

I have undertaken to apprise you of some of the statutes which touch upon 
the matter mentioned in your letter and the duties of this office in order that you 
may understand why phone calls, anonymous notes, and high-pressure letters 
written for newspaper spread cannot be accepted by this office as furnishing 
legal basis for a raid or arrest. Although I am sure your organization has the 
purest of motives, you must realize that the powers of this office are quite ofteu 
sought for purposes of spite, blackmail, and other ulterior motives, and the people 
are entitled to the protection against false arrest and unlawful search that the 
law intends and contemplates by reqixiring the complaining and allegedly informed 
person to execute an affidavit, except in the cases which I have mentioned. 

Any evidence or information of a law violation which you possess and desire 
to furnish in sworn form should be furnished to the county solicitor, the grand 
jury, the county judge, the justice of the peace, or to any circuit judge. 

If and when I I'eceive a warrant or capias from any of these judicial officers, 
I shall execute it efficiently and expeditiously. 

Furthex'more, I shall continue to detect and arrest crime in this county to the 
best of my ability and within lawful bounds wherever it is found. This means, 
in the case of gambling, that my deputies will arrest without warrant and prefer 
charges in every instance where they are able to elude watchers and spotters 
and gain entry peaceably and without force and personally witness the acts you 
say are being committed. 

That was the letter that I sent to the law enforcement league, and 
here is the letter that I sent to our attorney general, Tom Watson, also 
on January 27, enclosing the letter which I have just read pertaining 
to the laws of the State of Florida on the arrests, warrants, searches 
and seizures : 

Hon. Tom Watson, 

Attornei/ General, Tallahassee, Fla. 

Dear Sir : I enclose copy of letter received by me on the twenty-fourth instant 
from an organization called the law enforcement league, together with my reply 
of the twenty-seventh instant. 

I would appreciate your advising me as to whether, in my reply, I have correctly 
stated and interpreted my official duties in the matter and if not, wherein I am 
in error. 

Thanking you for this service, I am 

Yours very truly. 

This is the letter from the attorney general addressed to me on 
February 4, 1947. 

Hon. Jimmy Sullivan, 

Sheriff of Dade County, Court House, Miami, Fla. 
Dkar Mr. Sitllivan : This will acknowledge receipt of your letter of January 
27, last, as well as the enclosed copy of letter addressed to the law enforcement 
league under date of January 27, also. 

Please be advised that your reply to a letter from said league is entirely sat- 
isfactory and appropriate. 
Sincerely yours, 

J. Tom Watson, Attorney General. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 247 

I The Chairman. Let this correspondence be filed as exhibit No. 128. 

I Mr. Sullivan. I have here the opinion from the supreme court of 
the January term, dated January 17, 1950, which the opinion was 
filed, and which I took up with my attorney for a breakdown of the 
opinion as to my duties and what I should do in this protection of my 
office, with search warrants, with the issuance of search warrants. 
It reads (reading) : 
Re : Search warrants. 

Jimmy Si^tllivan, 

Sheriff, Court House, Miami, Fla. 

Dear Sheriff: We call your attention to an opinion of the Supreme Court of 
Florida tiled January 17, 1950, which imposes considerably more of a burden 
upon peace officers in the obtaining of a valid search warrant under Florida law. 

In the future, the person applying for the warrant must himself be. able to 
particularly describe the place to be searched, the things to be searched for, 
and the perscm or persons to be arrested, or if he has gained his information 
as a result of another person's investigation, he must state particularly, in the 
words of the court, "how the affiant came by the intelligence" and if through 
someone else, the other person's name must be disclosed together with such 
further information as "would be competent in the trial of the offense before 
a jury and would lead a man of prudence and caution to believe that the 
offense has been committed." 

Note the concluding language of the court which states that : "We are not 
unaware that guilty persons may go free where convincing evidence against 
them is held inadmissible because obtained by defective search warrants. But 
our paramount concern is for the guaranty in the organic law against unrea- 
sonable searches. We have spoken on this subiect, too, in Cooper v. State, 
supra, where we approved Judge Cooley's comment that 'It is oftentimes better 
that crimes should go unpunished than that citizens should be liable to have 
their premises invaded.' " 

In view of the above, a peace officer will no longer be able to make a proper 
affidavit or search warrant upon the basis of information furnished by another 
without fully revealing the identity of the other person, the manner by which 
he gained his knowledge, and all other facts pertinent to or bearing uiwn the 
other person's investigation and his entire connection with the matter. This 
means that information furnished by undercover operators or citizens who do 
not wish to have their identity disclosed no longer can be used without publicly 
recording all names and other factors involved. 

A copy of the supreme court opinion referred to is hereto attached. 
Very truly yours. 

The Chairman. Who is that letter from ? 

Mr. Sullivan. That is from Mr. Hunt here. This is the letter, 
and that is the opinion of the Supreme Court of the State of Florida 
[indicating]. 

The Chairman. Is Mr. Hunt the county attorney or is he your 
personal attorney ? 

Mr. Sullivan. Mr. Hunt is my attorney for the office, the sheriff's 
office. 

The Chairman. Is that a county position, or did you just employ 
him ? In other words, who pays him ? 

Mr. Sullivan. He is paid out of the fees from the sheriff's office. 

The Chairman. Let this letter and the opinion be filed as exhibit 
No. 129. 

(The opinion referred to appears in the appendix on p. 759.) 

The Chairman. Is this position of attorney for the sheriff's office 
a legally constituted office ? 

Mr. Sullivan. Yes, sir. 

The Chairman. Do you mean that it is set up by statute ? 

68958 — 50 — pt. 1 17 



248 ORGANIZED OEaME IN INTERSTATE COMMERCE 

Mr. Sullivan. Yes, sir; it is. You see, we have so much civil liti- 
gation in our office that daily we have to refer to our attorneys. 

The Chairman. Well, you have county solicitors; don't you? 

Mr. Sullivan, We have county solicitors, but they don't advise us 
on these things. 

The Chairman. Would they advise you on these things if you 
asked them to ? 

Mr. Sullivan. I have talked with them, but they tell me to get 
together with my attorney. 

The Chairman'. And the sheriff here has always had an attorney 
for his office, separate from any others ? 

Mr. Sullivan. Yes, sir. I believe they all have attorneys. 

The Chairman. What does that position pay? Do you know what 
it pays ? 

Mr. Sullivan. It's either $300 or $350 a month. 

The Chairman. That is customary in Florida for the sheriff to 
have an attorney for his office to advise him about matters? 

Mr. Sullivan. Yes; it is, because we have so much litigation that 
the duly elected and appointed attorneys don't have time to handle. 

The Chairman. Does the sheriff select the attorney for the sheriffs 
office? 

Mr. Sullivan. Yes ; he does. 

The Chairman. Mr. Hunt has been your attorney ever since you 
have been sheriff ? 

Mr. Sullivan. No ; he hasn't. 

The Chairman. Whom did you have before ? 

Mr. Sullivan. I had a Mr. Hollis Einehart. 

The Chairman. Did the sheriff before you have an attorney for 
the sheriff's office ? 

Mr. Sullivan. Yes ; he did. 

The Chairman. All right, sir; you go ahead. I simply wanted to 
clear that up. 

Mr. Sullivan. Senator, I would like to show here what we do in 
our office with the few men that I have. 

The Chairman. Well, you have quite a long document here. 

Mr. Sullivan. That is true, but there is some of the substance in 
there that I would like to bring out. 

The Chairman. You may file the document as exhibit No. 130, and 
you can make any exijlanation you want, Mr. Sullivan, or bring out 
any particular point you wish. 

(Statistics for sheriff's office, Dade County, Fla., 1945 through 1949, 
ap])ear in the appendix on pp. 760-765, as exhibit No. 130.) 

Mr. Sullivan. Thank you. I am going to start with the past full 
year of 1949. In the year of 1949 our office handled 8,301 prisoners. 
Fines and forfeitures for that year were $131,942.56. We had con- 
victions of 5,777. 

Prisoners sent to the State penitentiary were 277. Warrants and 
capiases served were 4,693. Homicide investigations were as follows : 
Murder, 73 ; fatal accidents, 53 ; rape, 70 ; suicide, 63 ; drowning, 24 ; 
and natural deaths, 158. 

We want to bring out the number of persons fingerprinted and 
photographed, listed according to crime committed : 



ORGAJs^ZED CRIME IN INTERSTATE OO^MJVIERCE 249 

Gambling, 44; operating a gambling house, 494; lottery, 19; illegal 
possession of punchboards, 10 ; murder, ;i2— there is something wrong 
there ; this is not right — manslaughter, 23 ; rape, 20, 

The number of arrests for illegal possession of slot machines is 7, 
and the number of machines seized is 20. 

That was in the year of 1949. 

And here are the statistics for the month of February 1, 1950^ 
through March 15, 1950. That is 45 days ; and I would like to present 
this along with our other information. I have much more here. I 
have each month in detail, of what our office does with gambling and 
the operating of gambling places. 

This is for January 1950 : Operating of gambling houses, ?A — this 
is for persons fingerprinted and photographed, listed according to 
crime connnitted — lottery, 12 ; gambling, 12 ; and that is for the month. 
of January. 

The Chairman. The committee will be glad to receive these as ex- 
hibit Nos. 131 and 132. 

(Statistics for sheriff's office, February 1-Marcli 15, 1950, were 
marked "Exhibit No. 131," and appear in the appendix on p. 7(55. 
Report on activities of sheriff's office for January 1950, dated Febru- 
ary 6, 1950, was marked "Exhibit No. 132" and appears in the 
appendix on p. 766.) 

The Chairman. Senator Hunt has a question he wishes to ask. 

Senator Hunt. Sheriff, you mentioned two figures — 7 and 20 — w^ith 
I'ef erence to slot machines. What was the 7 figure ? 

Mr. Sullivan. That was the number of persons arrested; and the 
20 was the number of slot machines seized. Just a minute 

Senator Hunt. Well, that answers my question sufficiently. 

Mr. Sullivan. The number of arrests made for illegal possession 
of slot machines was 7. The number of slot machines seized was 20. 

Senator Hunt. Now, Sheriff, do you know how many permits, $100 
Federal permits, were paid here in the county in 1948 on slot machines ? 

Mr. Sullivan. Senator Hunt, I wouldn't know that, for this reason : 
We take every slot machine that we can find in our county. 

Senator Hunt. It would, however, run up into the thousands, would 
it not? 

Mr. Sullivan. Perhaps it would; but the machines have not been 
in Dade County — I mean, operating in Dade County. 

Senator Hunt. Would you mind giving us the breakdown on the 
277 that were sentenced to the penitentiary, if you have it? If you 
don't have it, it is not too material. 

Mr. Sullivan. Well, I don't have any breakdown with the exception 
of the time that they all served. That is all I could Sfive you on 
that. ^ 

Senator Hunt. Could you tell me if any of them were bookies? 

Mr. Sullivan. I can't tell you definitely, but I don't believe that 
any of them were. 

Senator Hunt. That is all I have to ask, Mr. Chairman. 

Mr. Sullivan. Now, just for comparison, we go along to the year 
of 1948, and here are the statistics of this office : 

Prisoners handled were 8,903; fines and forfeitures, $105,101.88. 
It goes on through the subpenas which were served: 14,137. The 
warrants and capiases served were 4,587. The total homicide investi- 
gations were 355. 



250 ORGANIZED C'RITME IN INTERSTATE COMMERCE 

Now, these homicide investigations are : Murder, 55 ; fatal accidents, 
36 ; rape, 68 ; suicide, 51 ; drowning, 40 ; natural deaths, 105. In these 
investigations, if there is any peculiar circumstance surrounding any 
death that we find in Dade County, wherever it happens to be, our 
office or a deputy sheriff, or one of our special deputy sheriffs, makes 
investigations of these homicides that occur in Dade County. 

Assaults with deadly weapons, attempted rape were 361 ; burglary, 
robbery, and miscellaneous investigations were 1,361; which made a 
total of investigations of 2,077. 

Prisoners fingerprinted were 2,760. 

Senator, why I like to bring this out here is that it has been openly 
rumored and stated that this office, my office, does nothing whatsoever. 
This is perhaps the first time that the people of our county have had 
a chance to find out what the sheriff's department does in Dade County. 
If we have convictions, you read about them maybe on the back page 
or maybe in the inside or the middle of the paper. Most of the time 
what we get in the paper is absolute ridicule. 

It hasn't been 10 days since the papers have been sort of putting 
me on the back page; but, up until that time, anytime me or my office, 
or anyone having anything to do with me, was mentioned in the 
newspapers he was mentioned in a berating manner or cast off in some 
way. And when you have 6 years of this, continuously — these papers 
did everything possible that they could do in the last election, by lies 
and everything else, in trying to defeat me, with their two powerful I 
radio stations and in every publication that came out. They even at 
one time refused to put an'ad in the paper for me. 

It has been a one-sided fight throughout. They have generated these 
law-enforcement leagues; they have made our county look awful. 
They have scandalized us throughout the whole United States. That 
is, o'ur two papers. And I don't have to tell anybody about that. 
Any of you people who live all over the United States can pick up one 
of these papers and say, "Better be careful going to Dade County. 
They'll cut your head off ; jerk you in some dark alley and cut your 
head off." It started 10 days after I took office, and it has been with 
me ever since. 

The people here in Dade County are well aware of the fact that I 
was elected the last time with a big majority. 

The Chairman. By how much ? 

Mr. Sullivan. I believe it was 17,000. There were more votes cast 
in the sheriff's race in Dade County than in any other race; more votes 
than in any other race. That was in the actual election. 

The Chairman. Were these 2-year terms that you were elected for? 

Mr. Sullivan. Four-year terms. I was elected the first time in 
1944, after trying to join each branch of our United States service 
while I was still a police officer in downtown Miami. Then, when I 
failed to get into the service, well, I thought that I could be elected 
sheriff of Dade County, and I ran for this office, and the people 
elected me. 

In the year of 1948 the number of arrests for illegal possession of slot 
machines" was 6 ; the number of slot machines seized was 10. 

The Chairman. What year was that? 

Mr. Sullivan. That was the year of 1948. 

Tlie Chairman. How many slot machines were seized ? 



ORG'ANIZED' CRIME IN INTERSTATE OOMMEROE 251 

Mr. Sullivan. Ten. We had at that time eight cases of gamblino;. 
We don't charge people with gambling, becanse they get off witli a 
fine of $10 to $25, or something like that. We charge them with oper- 
ating a gambling house. If the horses are not here, I believe the fine 
is either $200 or $250. When the horses are running in Dade County, 
the fine is $500. We had 2G9 cases of operating gambling houses; 
illegal possession of punchboards, 2; murders, 7; manslaughter, 15; 
rape, 15. 

The Chairman. The committee will study these reports that you 
have prepared. Sheriff Sullivan, and they will be made exhibits to 
your testimony. 

Mr. Sullivan. I might also say in here, Senator, that this office, 
in my first 4 years of being sheriff, earned $2:35,000 in excess fees for 
our county. That was earned and turned back to the operating ex- 
penses of our county, turned back to our taxpayers. 

Previous to my taking office, the most that was earned was $58,000 
in 4 years. 

The Chairman. You are not on a fee basis. You are on a salary 
basis ; are you not ? 

Mr. Sullivan. My office is strictly on a fee basis. I make a budget, 
and I can operate up to that budget, providing I make enough money 
to pay with, which I have always done, and my budget today is pretty 
big. 

We have, I believe, 105 in our sheriff's department, and I believe 
13 or 14 of those men are deputy sheriffs who have school assigmiients 
only. They are older men. They work in our county schools in the 
unincorporated areas. 

We have 33 of our men working on our road patrols, and the rest 
of them are deputy sheriffs, of which we have 23 that are in the 
civil department, which serves all of the civil processes of our 
county. 

We have 11 of them that work up at the desk and in the jail as 
jailers. We just lost a couple of prisoners, but they broke out of a 
rusty part of our section of the jail. 

The Chairman. Is your salary fixed by law, or just how is it 
fixed? 

Mr. Sullivan. Senator, the salary is fixed by law. 

The Chairman. What is your salary ? 

Mr. Sullivan. Well, now' it's $12,000. 

The Chairman. When did it get to be $12,000 ? 

Mr. Sullivan. At the last legislature. That was 2 years ago. 

The Chairman. So, your salary during 1949 was $12,000? 

Mr. Sullivan. Yes. 

The Chairman. And your current salary is at the rate of $12,000 
a year ? 

Mr. Sullivan. It is now. 

The Chairman. Before then it was how much ? 

Mr. Sullivan. $10,000. 

The Chairman. In addition to that do you get any fees out of the 
sheriff's office ? 

Mr. Sullivan. I make a correction on the salary there. You 
asked me "before then." Before then it was $7,500. AVlien I went in 
the office my salary was $7,500 yearly. 



252 ORGAXIZED ORfTME IN ESTTER'STATE OOMME'RC'E 

The Chairman. During what years was it $7,500 ? 

Mr. Sullivan. It was '45, '46'; I believe a part of '47, maybe the 
first 2 or 3 or maybe 4 months of '47. 

The Chairman. Then the remaining part of '47 and all of '48 
it was $10,000? 

Mr. Sullivan. Yes, sir. 

The Chairman. And in '49 and this part of '50 it is $12,000? 

Mr. Sullivan. That's right. 

The Chairman. How about your deputies; who fixes their sal- 
aries ? 

Mr. Sullivan. I fix their salaries. 

The Chairman. They don't participate in any fees above their 
salary ? 

Mr. Sullivan. No, they don't. And regardless of how much I 
earn I still get what is prescribed by law as my salary. 

The Chairman. Whether you earn it or not ? 

Mr. Sullivan. Yes, sir — No, no, no ; if you don't earn it you don't 
get it. 

The Chairman. You mean, if your fees don't make up that much ? 

Mr. Sullivan. If you want to put it that way. If your fees 
don't make it we don't get it. If we don't have it in the office we 
don't get the money. I don't know just what will happen. We will 
just have to cut down, that's all. 

The Chairman. But you have always gotten your full salary 
because you have always had a surplus ? 

Mr. Sullivan. Yes. I have always turned in considerable money 
to our county. We have complete records of that in the office. 

The Chairman. Now, let us get all of your records in here. Sheriff 
Sullivan. We don't want to hurry you, but as you know, we have 
many witnesses to hear. 

Mr. Sullivan. I would like to make a little clarification on some 
of these things, which I attempted to do a while ago on the homicide 
investigations that we have. I don't know whether it was thoroughly 
understood or not that in all of the deaths that we have in our county 
if there is anything, any surrounding circumstances at all, they are 
investigated by our homicide department; and even, at times, some 
natural deaths are investigated. 

I have two previous records of my predecessors here. 

Senator Hunt. Mr. Chairman, can't those just be taken into the 
record? I don't know that we need to discuss the records of his 
predecessors in office. 

The Chairman. We will have them. The point that you want to 
make is that what you have done compares favorably ? 

Mr. Sullivan. Yes, sir. 

The Chairman. All right, sir; they will be filed as exhibits to your 
testimony. (Statistics for sheriff's office, 1944 and 1943, were marked 
''Exhibit No. 133," and appear in the appendix on p. 768.) 

Mr. Sullivan. Here is a photograph of some of the men that took 
part in a raid that I believe they spoke of yesterday [handing docu- 
ment to chairman]. Those are some of the men that were there in the 
raid that took place yesterday. 

It took place up in back — I don't know what the name of the hotel 
was. It's an old hotel, back of the Army and Navy Club at One Hun- 



ORGANIZED CRIME IN INTERSIATE COMMERCE 253 

dred and Twenty-first Street, west of the boulevard, about a distance 
of three blocli:s. 

Tlie Chairman. Tliis picture which you have lumded me is a pic- 
ture, apparently, of a racehorse wire set-up. 

Mr. Sullivan. Yes, it is. 

The Chairman. For the transmission of racing information? 

Mr. Sullivan. Yes, sir. There was eight trunk lines coming into 
this, serving there from downstairs. 

The Chairman. Who are the people in this picture, Sheriff Sullivan ? 

Mr. SuLi.iVAN. This one here [indicating] is Mr. Toni, who was 
here yesterday. 

The Chairman. We remember Mr. Toni. 

Mr. Sullivan. And this is Mr. 

The Chairman. Gasque ? 

Mr. Sullivan. Yes. Buddy Gasque. And this is one of my men, 
George Patton; and this is also one of my men. Red Hughes. 

The Chairman. Let tliat be filed as an exhibit. (Photograph re- 
ferred to was marked "Exhibit Xo. 134" and is on file with the com- 
mittee. ) Did you have something further you wanted to say about it ? 

Mr. Sullivan. Well, I thought it might possibly clear up some 
matters there, which we have many of these types of raids in our 
countj^; which we have had many of them. For the record here are 
some of our raids in 1950. This was submitted to me by my chief 
criminal deputy, Claude High, who is the criminal investigator. 

The Chairman. Will you describe it. Sheriff Sullivan? 

Mr. Sullivan. Yes, sir. These are the raids we made in different 
places in our county, and the telephones and the wire service equip- 
ment that were received, that w^e took into possession. 

On March 5, 1949, the Arlington Hotel, 455 Ocean Drive, Miami 
Beach : We got six telephones and w^ire service equipment. 

The Chairman. Is that for this year or last year? 

Mr. Sullivan. This is the last part of last year and — I'll read what 
it says here : 

The following is a partial listing of places that have been raided by this depart- 
ment where three or more phones have been confiscated. This also includes 
other apparatus used in bookmaking establishments. 

The Chairman. All right. The committee will be glad to have 
this as an exhibit to your testimony. (Memorandum dated July 12, 
1950, listing places raided by sheriff's office, Dade County, was marked 
"Exhibit No. 135," and appears in the appendix on p. 769.) 

Mr. Sullivan. Would you like to hear about the phones and what- 
not that we have confiscated ? 

The Chairman. Tell us anything you want to tell us about it. 

Mr. Sullivan. All right. We have six telephones and wire service 
equipment from the Arlington Hotel. We have five phones that were 
taken up in North Miami, where an arrest was made. I believe the 
man was Louis Kaufman. We have seven telephones from the Avia- 
tion Building, Northwest Twenty-seventh Avenue and Thirty-third 
Street. From 6505 Northwest Eighteenth Avenue, 6 telephones 
(used), 15 telephones (new, in boxes), 1 Army field telephone set, and 2 
head sets were taken. At 139 Lindsay Court, Hialeah, Fla., eio:ht 
telephones and radio equipment were taken. 



254 ORGANIZED CHIME IN INTEKSTATE OOMME'RCE 

On January 4, 1950, at 2194 South Red Road, three telephones and 
equipment; January 13, 1950, 2360 Northwest Eighty-first Street we 
had five telephones and equipment ; from 207 West Flagler, January 
19, 1950, four telephones and equipment; 2180 Northwest Seventh 
Avenue, four telephones and equipment. 

Now, these are on the beach at the different hotels. 

At the Versailles Hotel there were three telephones. At the Clay 
Hotel there were three telephones. At the Good Hotel there were 
three telephones. At the Sea Isle Hotel, three telephones; the Monte 
Carlo Hotel, three telephones; the Martinique Hotel, four telephones^ 
and the Delmonico Hotel, three telephones. 

At the Tower Radio Shop— that was April 6, 1950— at 718 South- 
west Fifteenth Avenue, five telephones and equipment; Suburban 
Club Apartments, 1539 Northeast One Hundred and Twenty-first 
Street — that is the information I gave you there [pointing to group of 
exhibits]. From the Suburban Club Apartments, one six positions 
(12-line rotary) switchboard with 20 extra phones confiscated, and 
other equipment. 

April 14, 1950, at Greentree Hotel, 110 Northeast Second Avenue^ 
six phones and otlier equipment. 

At the Betsy Ross Hotel, April 25, 1950, at 1044 Ocean Drive, 
Miami Beach, three tele])hones ; and at 210 Twenty-first Street, three 
telephones. The total phones confiscated for that period were 137. 

The Chairman. Let me see that. Sheriff Sullivan. That is dated 
July 12, 1950. This apparently covers a period beginning March 
1949. As to these telephones, do you mean that they are just tele- 
phones that you raided and took out? 

Mr. Sullivan. They are horsebooks. Arrests were made at each 
one of those places. I can't tell you offhand how many arrests were 
made, but the records are in my books, the daily arrest sheets. 

The Chairman. Do any of these descriptions fit the Roney Plaza ? 

Mr. Sullivan. No, they don't. 

The Chairman. You know that Mr. Erickson has had quite an op- 
eration there for some time, do you not ? 

Mr. Sullivan. Yes. I have heard the testimony. 

The Chairman. You have known that for some time, have you not? 

Mr. Sullivan. No, I haven't. 

The Chairman. Hasn't it been common knowledge for some time? 

Mr. Sullivan, There was an arrest; I believe that may have been 
in '47, '48. I'm not sure. I couldn't say positively, but I believe 
that there was an arrest for horsebooking in the Roney Plaza Hotel. 

The Chairman. You remember, do you not, Mr. Sullivan, that there 
were a lot of complaints made about the previous operator there, Mr. 
Salvey, in the newspapers, and that the operators of the Roney Plaza 
decided that they had better cliange operators, and they changed from 
Mr. Salvey to Mr. Erickson ? That has been in the newspapers, hasn't 
it? 

Mr. Sullivan. Well, if it has, I haven't read it. 

The Chairman. How about the Boulevard Hotel ; do you see any 
description on here of the Boulevard Hotel? 

Mr. Sullivan. I didn't mention any just now. 

The Chairman. Is that operated, or was it operated, by Abe Allen- 
berir ? 



ORGANIZED CMME IN INTERSTATE OOIMMERCE 255 

Mr. Sullivan. Well. Abe Allenberg used to operate it. 

The Chairman. Well, he had a wire service there, did he not ? 

Mr. Sullivan. He what I 

The Chairman. He had a wire service there. You knew that, 
didn't you? 

]\Ir. Sullivan. I can't say, Senator. 

The Chairman. Well now, you know he was at the Wofford and 
then he was at the Boulevard and his gang went from one hotel to 
the other with him ? 

JNIr. Sullivan. I believe he managed both hotels. 

The Chairman. What ? 

Mr. Sullivan. I believe he managed the Wofford and the Boulevard. 

The Chairman. He managed the Wofford during the time when 
Costello and Adonis and all of these people were big operators? 

Mr. Sullivan. It could be. I'm not aware of the fact. 

The Chairman. You have seen it in the papers, have you not, the 
pictures of these people in the papers, as guests, and so ferth? 

JNIr. Sullivan. Yes, sir; from time to time there have been some 
pictures; yes, sir. But there are all kinds of names which I have, a 
number of names here, and a number of pictures. And wliile we are 
speaking of the undesirable people who came into our community from 
time to time and who are not committing a crime of some kind or have 
not been wanted, or are not wanted in some other area or in our area, 
would 3^011 or some other gentleman tell me what we can do about it ? 
Our Government can't arrest them. 

The Chairman. Why? 

Mr. Sullivan. Because what are they wanted for? If we have got 
a record on them we can pick them up. If we have a record, regard- 
less of who comes in here, if we have a record and papers for him, we 
Avill pick him up. If I find that he is doing something illegal I will 
pick him up or have one of my men pick him up. 

The Chairman. Have you read about the conspiracy to violate the 
gambling laws of the State of Florida ? 

Mr. Sullivan. I heard about it. 

The Chairman. You have your attorney here. He has been your 
attorney for quite a number of years. Hasn't he advised you about 
that? He has advised you about certain laws here, matters of search 
warrants. Has he advised you about the conspiracy to violate the 
gambling laws of the State of Florida I About all you need are the 
records of the financial investments of these big boys. 

Mr. Sullivan. Well, those things. Senator, could be. However, if 
they are in the operation of some form of illegal activity and so that 
we can find them and arrest them, it will be done. 

Now, here we had a picture painted to us yesterday of the wire 
service, the interstate communications throughout our whole eastern 
part of our United States, possibly in every State ; but here was this 
picture here, and there have been hours and untold days of obtaining 
this information. 

Xow, that information was taken yesterday under oath, but why 
wouldn't it be so much better if that was taken under oath publicly, 
before you here, and the people of the United States to come down 
here and prescribe to some oath in our local government and let us 
take care of those people if they know that they are guilty of some 
crime ? 



256 ORGAJ^IZED CRIME IN INTERSTATE OOMME'RCE 

The Chairman. Well, I suppose the people of the crime commission 
have been here ready to give you any information that they can give 
you. 

Mr. Sullivan. Well, you suppose that, and I don't suppose that 
they have. These people, Senator, have been here ready to make head- 
lines in the newspapers any way and any time that they can; any- 
thing to sell a sheet of paper. 

The Chairman. Have you called on them for cooperation? 

Mr. Sullivan. Yes, sir. What do I get ? "You are the law-enforce- 
ment officer ; we're not. We are going to scandalize you and our prop- 
erty owners and taxpayers of our county. We're not going to give 
you nothing. We're going to run to the Miami Herald and the jMiami 
Daily News with it." And you will find that I am not alone in saying 
that. The people, the whole group of people sitting in the back of 
us, who know Dade County, will also tell you that. Sure, I'm for law 
enforcement. 

The Chairman. This might be a very good place, Mr. Sullivan, to 
read into the record a letter. Did you receive the original of this 
letter ? I believe this is your signature and this is the return receipt 
[indicating and handing same to Sheriff Sullivan] . Just say whether 
you received it or not. 

Mr. Sullivan. Well, you said to read this. I was seeing if I was 
familiar with it. 

The Chairman. I assumed that you were familiar with it. 

Mr. Sullivan. I might. I put my name on anything I receive, 
and I received this letter here. 

The Chairman. You received the letter ? 

Mr. Sullivan. This letter should be made public here. 

The Chairman. That is what I was going to do, Sheriff Sullivan, 
make it public. I will read the letter, or you can read it if you want to. 
What is the date of the letter? 

Mr. Sullivan. February 17, 1949. Yes, sir ; you read it. 

Tlie Chairman. I will read it. This, apparently, is a letter dated 
February 17, 1949, sent to you by the president of the Crime Commis- 
sion of Greater Miami. [Reading :] 

Hon. Jimmy Suixivan, 
Sheriff, Dade County, 

Court House, Miami, Fla. 

Dear Mk. Sullivan : This letter is written pursuant to direction of the hoard 
of directors of the crime commission and to explain the purpose of certain visits. 

You will recall that some 4 months ago the directors of the Crime Commission 
of Greater Miami invited you to meet wit)! them and you were kind enough to 
accept. At that meeting the directors explained that the purpose of the crime 
commission is to seek better law enforcement and more widespread respect for 
laws in Dade County. 

To that end we offered you and your office the full cooperation, including the 
investigative facilities, of the crime commission. 

In .January 1949, at the direction of our board of directors, one of our directors 
called your office on the teleplione for an appointment with you. He was told 
that you were out of your office at that time, so he left his name and telephone 
numl)er witli the request that you call him. I understand that he has not heard 
from you. Against the direction of the board of directors a committee of three 
of the directors called at your office so they left their names and telephone num- 
bers with your Mrs. Stewart. 

The Crime Commission of Greater Miami has a large membership and also 
.some 100 sponsoring organizations comprising a representative cross section of 
the citizenship of Dade County. Enclosed is a pamphlet showing the names of 
some of those sponsoring organizations. The crime commission can see no 



ORGANIZED' CRIME IN INTERSTATE COMMERCE 257 

reason why illegal gambling including bookie activities in Dade County should 
not be stopped promptly and permanently. Such activities are violations of 
State law and since you are the chief law-enforcement officer of the county, we 
look to you for help. 

We are informed that in December 1948 you gave to the present chairman of 
the State Kaeing Commission a signed statement indicating that horse book- 
making in r>ade (bounty was to cease inunediately and permanently. It is open 
and public knowledge that these particular activities and other illegal gambling 
activities are continuing and that many of the largest hotels at Miami Beach 
are permitting horse-booking operations on their premises. Continued toleration 
of these illegal activities will make further and more detrimental inroads on 
our general law-enforcement structure. It is our duty to our members and 
sponsoring organizations and to you, as sheriff, to call your attention pointedly 
to these facts and to let you know that if your office is unable for any reason to 
rectify them then it is our duty to inform our membership and sponsoring 
organizations, also to take such measures as may best be calculated to remedy 
them. 

Again we offer you our sincere cooperation and invite you to call on us at 
any time. 

Yours very truly, 



President, the Crime Commission of Greater Miami. 

I suj)pose that was Col. Jack Younger. Did you say you got that 
letter 'i 

Mr. Sullivan. I probably got the letter. Yes, sir, I would say, yes. 

The Chairman. You see the return receipt, signed by you, do you 
not? 

Mr. SuLLR'AN. I would say, yes. However 

The Chairman. That is a pretty important letter. If you got it 
one would think you ought to remember it, because they were oftering 
you the facilities of their whole organization, and it represented all 
the people wanting to help. 

Mr. SuLLWAN. They have been to my office and never offered any- 
thing like that. I am in my office just about every morning. We had 
one of the gentlemen come up here yesterday morning who stated that 
all the time the grand jury was in session I was out of the State, for 6 
months, which you know that I couldn't be, as the chief law-enforce- 
ment officer of Dade County, as the sheriff. The most that I have 
ever been out of the State on a vacation was 16 days. 

The Chairman. Well, Sheriff, the point is that here they say : 

To that end we offered you and your office the full cooperation, including the 
investigative facilities, of the crime commission. 

Did you take them up on that or did you ever tell them that you 
would like for them to help you? Did you ever ask them for any in- 
formation ? Did you or not ? 

Mr. Sullivan. In that particular letter, I don't know what haj)- 
pened. I don't remember talking with them after that letter was 
written. 

The Chairman. Well, that has been almost a year and a half ago, 

Mr. Sullivan. I understand that. 

The Chairman. And they have apparently offered to help. 

Mr. Sullivan. And I have publicly solicited their help also. 

The Chairman. Have you asked them for any assistance? 

Mr. Sullivan. I have been to their meetings, I have talked with 
them. I have written them. They say, "It's your job, it isn't our job." 

The Chairman. Have you asked them to furnish you with infor- 
mation about 



258 lORG'AXIZED CKIIME IN USTT'ER'STATE COMMEEC'E 

Mr. Sullivan. Let me read a letter here. 

The Chairman. Have you asked them to furnish you with infor- 
mation about the Roney Plaza, the Boulevard, or any of these places I 

Mr. Sullivan. I have asked them for information pertaining to 
gambling in general. 

The Chairman. When did you ask them ? 

Mr. Sullivan. I wrote them a letter on February 5. 

The Chairman. Of what year ? 

Mr. Sullivan. 1950. I would like to read it. 

The Chairman. All right. 

Mr. Sullivan. I am going to read the entirety of this page here and 
this quarter. 

Your weekly scandalcast 

The Chairman. To whom is the letter addressed ? 
Mr. Sullivan. It is addressed to Mr. Daniel Sullivan, Director, 
Crime Commission, Miami, Fla. [Reading :] 

Your weekly scandalcast has come to my attention. I had been warned that 
because of your activities before the current grand jury and the presence in 
Miami Beach of the United States Attorney General, whom you seek to impress, 
you would make your accusations and charges particularly sensational on your 
weekly broadcast and news write-ups this week end. You have lived up to the 
advance billing. 

As the $15,000 per year scandalizer of the so-called crime commission, you 
know that you are not honestly interested in suppressing crime in this county. 
You know you and your organization, composed of a few anti-Sullivan people, 
set out from the very first to "get" Jimmy Sullivan. You and others in your 
group who suffered two successive and overwhelming defeats at the election polls 
in the sheriff's race, have combined, planned, and conspired to talve over my 
office by means fair or foul ; and as a part of your disgraceful program you have 
broadcast every week that gambling is wide open and that the county is overrun 
with thugs, crooks, gangsters, racketeers, hoodlums, thieves, triggermen, mob- 
sters, and other friglitening appellations of your own invention. 

These charges are pure fabrications of your own creation, and you know it. 

All the local residents whom you have named as having criminal records are 
has-beens so far as the law is concerned and, while they may be listed as neigh- 
borhood undesirables, since they are not under prosecution or charge for any 
offense, they have the same rights under the Constitution and laws that yoi; or I 
have. 

Not one single name have you mentioned in all your scandalmongering speeches 
of an.v man in Dade County who is wanted by the law for any offense. Your 
repetitious, windmill attacks against the names and records of past offenders 
seem to make better and more sensational music for your deceitful purposes. 
Neither do you concern yourself with the more serious social offenses, such as 
larceny, rape, highway robbery, murder, manslaughter, juvenile assaults, bur- 
glary, and many other high felonies. Gambling is your sole oh.iective. You and 
your organization are not truly anticrime ; you ai'e anti-Sullivan, and from the 
beginning you have attempted and laid plans to do what you failed to do at 
the election polls — get Sullivan out of office. 

If you have evidence of gambling in this county, why do you secrete It in your 
files and use it only in your attempts to "get Sullivan"? If you will not place 
your evidence before nie, why have you not laid it before the county solicitor, 
the State attorney or one of our many warrant-issuing judges for action? If 
you seek to perform an honest public service, why have you not had the courage 
to use this evidence to suppress the conditions you claim to exist? 

The answer is obvious. Your purpose is to take over the sheriff's office, not 
to suppi-ess or eradicate crime. Through the medium of your scandalous, crime- 
mongering broadcasts, you seek to influence tbe grand jury to assist you in 
your hid(l(>n purpose to defeat aiul oppress nie by a back-door method, after you 
lost the front-ddoi- effort at tlie election polls. 

As to the mattcM's coviM-ed in your cliarges, my office is operated in strict accord- 
ance with a written opinion of the attorney general of Florida, based upon the 



lORGAXIZED CRIME IN INTERSTATE COMMERCE 259 

laws of this State. The Slate attorney lias a copy of that opinion and if you 
are interested, can prepare a copy for your use. 

Lastly, let nie say that, while there may be (there always has been) a small 
amount of "sneak" gambling in a few places, you, as the high-salaried "get- 
Sullivan" hatchetman, well know that on the whole, considering our community 
growth and tlie f;0-square-mile spread of over .lOO.OOO permanent residents and 
hundreds of thousands of winter visitors, the slieriffs office has done a good 
job in stippressing crime and keeping the county clean. In my entire force of 
.only 95 persons, after deducting clerks, and road patrolmen, I have only 15 men 
to haudle the criminal assignments, which includes woi-k in the criminal court 
of record, the court of crimes, and the circuit and county judge's courts. 

Divide these 15 men into working shifts, and you will understand, i>erhaps, 
what we are confronted with in our efforts to serve the people of this fast-moving 
county. Despite this shortage of manpower, our criminal division's record is, 
second to none In the South. 

A copy of this response has been mailed to Gov. Fuller Warren. 
Very truly yours, 

Jimmy Sttluvan, Sheriff. 

The Chairman. Let me see the letter a moment. You complain 
there that yon didn't have enonffh deputies or there was some shortage 
of men, that you had only 15 men to do something. Here it is : 

I have only 15 men to handle the criminal assignments, which includes work 
in the criminal court of record, the court of crimes, and the circuit and county- 
judge's courts. 

Yon really need more men than that. 

Mr. Sullivan. Senator, that is true. I have my road patrolmen 
come in and work overtime on investigation assignments, and I have 
civil men who work overtime. 

The Chairman. The point is, Sheriff Sullivan, that Judge Milledge 
here yesterday testified that he appointed some elisors, that is, citizens 
to serve warrants, and that you brought a suit, I believe, to enjoin 
their appointment. 

Mr. Sullivan. No, sir, Senator; the appointments were already 
made. 

The Chairman. Didn't you object to them ? 

Mr. Sltllivan. No. 

The Chairman. You didn't object to them ? 

Mv. Sullivan. I had nothing to do with an objection to the war- 
rant, the service of the papers, or anything else, but the manner in 
w^hich it was handled ; some law-enforcement body should have handled 
it. You shouldn't go out here and get people off the street to take on 
a raid of that kind, line people up against the wall and jerk a gun into 
their stomachs and frighten them to death, because some of them would 
nearly jump out of the window in the place. 

The Chair3ian. That was an honest effort on the part of the judge 
to get some help for you, wasn't it ? 

Mr. Sullivan. I wouldn't say so, no; because my office was there 
and we have never failed to serve one paper which the judge has issued, 
if possible, in Dade County. Then w^e also have justices of the peace 
and constables. We have law-enforcement officers who are expei'i- 
enced in making those arrests, and if one of those papers should be 
directed to me and I should fail in my duty to properly carry out 
that order I would be removed from office. All the (lovernor would 
have to do to remove me from office would be to say, "I suspend you 
from office temporarily, until the legislature meets again." 



260 ORGANIZED ORflME EST INTERSTATE OOMMERC'E 

The Chairman. I notice your letter says here : 

And as a part of your disgraceful program, you have broadcast every week 
that gambling is wide open and that the county is overrun with thugs, crooks, 
gangsters, raclieteers, hoodlums, thieves, triggermen, mobsters, and other 
frightened appelations of your own invention. 

These charges are pure fabrications of your own creation, and you know it. 

Well, I was just looking at this chart [indicating exhibit No. 108, 
a chart submitted by Mr. Daniel Sullivan]. Isn't it true that these 
people have been running around here ? 

Mr. Sullivan. Yes. 

The Chairman. You would not want to call them the creation of 
somebody's imagination if they are around here ? 

Mr. Sullivan. Yes, Senator. That is just what I have been speak- 
ing of just now though. When a group of people spend days, many 
days, getting that information and if an arrest can be made and those 
people can be taken care of before a court of justice why have not 
those papers been presented where they can be taken care of ? 

The Chairman. Well, Mr. Sullivan, you can't correctly say though 
that these people haven't been here, that it hasn't been public knowledge 
that they have been here. I have seen Miami papers during the past 
6 or 8 months with their pictures in them showing that they were regis- 
tered in hotels here. You can't say that is just pure fabrication or 
the creation of somebody's imagination, can you? I mean, that is 
liardly correct. If these people are hanging around here every year, 
why, that is not pure fabrication of "your own creation," is it? 

Mr. Sullivan. Senator, we have several hundred thousand people 
who come down here in the wintertime and it is impossible — we in 
every way invite as many people as we can to come to Dade County 
in the wintertime and the year round, particularly when the horse 
races are going — we have three horse races going here in this area 
and one of them in Broward County. We get as many people down 
here as we can. 

The Chairman. I know that Sheriff Sullivan, but you don't want 
these people [indicating chart] down here, do you? 

Mr. Sullivan. We don't want these people down here. 

The Chairman. It has been quite common knowledge to anyone 
who knows anything at all that these people have been here every 
season. 

Mr. Sullivan. Suppose we do this. Senator. Suppose if we have 
something that we can do about them we go to the law-enforcement 
officers and say, "Let's arrest these fellows. We have investigated and 
find we can arrest them on this type of charge" instead of goin^ down 
to our newspapers and saying, "This is what you see in Dade County. 
Be careful in walking down the street because somebody will strike 
a knife in you" ? Wouldn't that be better ? 

We got many thousands of property owners, and some of them are 
big property owners who pay big taxes to operate our county. We 
have the fastest-growing area perhaps in the United States. 

The Chairman. Let us get back to tliis other point. With all these 
people here you say, "Wouldn't it be better to let you know they are 
here rather than putting it in the newspapers." I asume it has been 
goincr on for a long time and it is common knowledge that tliese 
people are here and that many of them have been operating various 



lORGAJSnZED CHIME IN mTEUSTATE OOMMEROE 261 

things, illegal operations. What good would that information do 
if it was turned over to you ? I suppose as a last resort, feeling noth- 
ing else had happened, they put it in the newspapers. 

Mr. Sullivan. Well, if the newspapers are for you it is one pic- 
ture and if they are against you it is another picture. You know 
that. Senator. You are well aware of that fact. If you run for office 
you find that out and I happen to know. 

The Chairman. So you don't think the newspapers are in favor 
of law enforcement, in getting these criminals and arresting them and 
bringing them to justice and getting them out of town? You don't 
think they are in favor of it? 

Mr. Sullivan. They are. 

The Chairman. Why do you condemn their efforts in that respect 
then ? 

Mr. Sullivan. I am in favor of it just as much as they are. I work 
just as hard as they work and I have my entire force working hard. 

The Chairman. But nothing has happened ; isn't that the point ? 

Mr. Sullivan. Well, you just saw 272 or 279 of them were sent 
to our prison here last year. 

The Chairman. I didn't see any of those names on there [indi- 
cating charts]. 

Go ahead with your statement, Mr. Sullivan. I didn't mean to 
get into an argument with you. 

Mr. Sullivan. Senator, in regard to what you spoke of a minute 
ago as to the elisor raids 

The Chairman. Yes. 

Mr. Sullivan. This case was brought by Jimmy Sullivan, as sheriff 
of Dade County, Fla., against Stanley Milledge, as one of the judges 
of our Circuit Court of Dade County 

The Chairman. Then you did bring a suit? 

Mr. Sullivan. Yes, sir. 

The Chairman. I thought your counsel said no suit was brought? 

Mr. Hunt. Counsel never said that because counsel brought the suit. 

The Chairman. I see. 

Mr. Sullivan. The suit was brought to show cause, to show the 
cause why my office was not called on to serve these processes. It is 
my duty to do that and if I fail one time let them put me out of office 
legally through our State channels which they can do, but I don't 
believe that— I don't know just what happened in that case. One of 
the fellows who was working there when this took place was also one 
of the elisors who was appointed elisor. 

The Chairman. Anyway, an elisor was appointed by Judge 
Milledge? 

Mr. Sullivan. Yes, sir. 

The Chairman. Judge Milledge has a very good record of trying to 
enforce the law. 

Mr. Sullivan. Yes, sir. He is a very fine fellow. 

The Chairman. If there wasn't any question that he had to appoint 
an elisor, how about the sheriff's office? 

Mr. Sullivan. No. 

The Chairman. Did he appoint an elisor or not? 

Mr. Sullivan. Senator, he appointed an elisor but not to help out 
the sheriff's office. We were there to serve the papers. 



262 iORG.^XIZED GRUME EST ESTTER'STATE OOMME'RCE 

The Chairman. Will you explain that any way yon want? 

Mr. Hunt. Let me present, Senator, a copy of the bill for declara- 
tory decree which will present the legal issnes as they were plead in 
conrt [handing document to the chairman]. 

The Chairman. May we have this for the record ? 

Mr. Hunt. Yes, sir. I am giving it to yon for the record. 

The Chairman. I see this is a long order, Mr. Hunt. Why don't 
you explain what the orders says to save time ? "W'liat was the result 
of the order? 

Mr. Hunt. The order, signed by four of the circuit conrt judges, 
Judge Milledge excepted, holds two things, that — 

All process, except that issuing from a justice of the peace court, shall he 
served by the sheriff or any constable of the county in the district in which it is 
to be served. Process of a justice of the peace court may be served by a sheriff 
of the county or by a constable. A justice of the peace or a constable in the re- 
spective counties, may serve all process in cases where the sheriff is interested, 
and in case of necessity the judge of the circuit court may appoint an elisor to 
act instead of the sheriff. 

And it was held in this opinion by these four judges that it was 
improper to go over the head, that it was improper for a circuit court 
judge to go over the heads not only of the sheriff but the constitu- 
tionally elected and appointed justices of the peace and constables pro- 
vided under this law and to appoint a private individual to strap a gun 
on him and go raiding. 

That is the purport of it. It did dismiss the bill upon tlie ground 
that such an action could not be maintained under the Florida dec- 
laratory decree statute. 

The Chairman. Well, the bill that w^as dismissed 

Mr. Hunt. AVas the one I presented. 

The Chairman. Was Sheriff Sullivan's bill ? 

Mr. Hunt. That is right. 

The Chairman. So, there wasn't any decision here as to whether 

Mr. Hunt. You have three pages of such decision as I have just 
quoted. 

The Chairman. Well, this just states the law and then just says that 
Sheriff Sullivan's bill for some jurisdictional reason has to be dis- 
missed. 

Mr. Hunt. That latter part is correct. 

The Chairman. We will mark this as an exhibit. (Bill for De- 
claratory Decree, and opinion and order, referred to above, was 
marked "Exhibit No. lo6," and appears in tlie appendix on pp. 770- 
777.) Anything else. Sheriff? 

Mr. Sullivan. Senator, we have here some of the things of which 
you lieard yesterday. These are the records of some of the people, 
their past records, who live on Miami Beach or in different parts of 
Dade County [indicating file]. 

The Chairman. You are talking about some of the S. & G. people? 

Mr. Sullivan. Well, I am talking about the people we have 
records of. It could be. I don't know. It is possible. 

I am speaking now of this Charles Fischetti who lives on Allison 
Road, INIiami Beach, and whose plione is not published and is in his 
wife's name. His wife is a registered voter. The taxes are ])aid 
by Ami Fischetti. The gas is paid by Ann Fischetti. The water 
is paid by Ann Fischetti and the lights are paid by Ann Fischetti. 



ORGANIZED CRIME IN INTERSTATE OOlVIMERCiE 263 

The gas was paid since January 9, 1939, and tlie lights were paid 
since October 10. 1939. 

Mr. Hunt. Go to the next one. 

Mr. SuLLivAX. The next one is Joe Massei, who lives at 1062 
Northwest Twenty-second Street, who receives his mail there, rather, 
in care of the INIiami Provision Co., phone, 2-8113, and his residence 
is the Grand Hotel, 2220 Twenty-third Street, Miami Beach, ])hone, 
56813; no voter's registration; taxes on 1062 Northwest Twenty- 
second Street paid by Miami Feed & Supply Co., located at 1038 
Northwest Twenty-first Terrace. Lights in the name of Joseph 
Miller, wholesale meat business; taxes on 220 Twenty-third Street, 
Miami Beach, paid by Polkin, Inc; lights on 220 Twenty -third 
Street, Miami Beacli, paid by John G. Lux since September 30, 1919. 

Here is Sam Taran who has been in local skirmishes here from 
time to time. He lives at 6520 Allison Road, Miami Beach. The 
])hone is 86-1903 and 86-6986. His wife is Diane and brother is 
F. H. Taran; Taran Distributors, Inc., 2820 Northwest Seventh 
Avenue; Sam Taran, president; Taran Television, phone 3-7618. 
Registered voter. Taxes paid by S. H. Taran; gas paid by S. H. 
Taran since December 3, 1915 ; water paid by S. H. Taran since 
December 3, 1915 and lights paid by S. H. Taran since December 
3, 1945. 

The Chairman. How many do you have there ? 

Mr. Sullivan. Senator, the point 

The Chairman. The point is you prove that they are property 
owners ? 

Mr. Sullivan. Yes, sir. 

The Chairman. Will you file these as an exhibit to your testi- 
mony^ The committee will be glad to have the information. 
(Photographs and criminal records submitted by Sheriff Sullivan 
were nuirked ''Exhibit No. 137," on file with committee.) 

Are those the identifications of them? 

Mr. Sullivan. Yes, sir. And also some more pictures of some 
[handing photographs to the chairman]. 

The Chairman. I see you have a picture of Mickey Cohen and his 
body guards. 

Mr. Sullivan. You will be interested in this I am sure. We have 
these and records for these people here [handing documents to the 
chairman]. 

The Chairman. The first picture you hand me is the home of 
John Angersola. 

(Exhibit No. 138, see appendix, p. 777.) 

Mr. Sullivan. Yes, sir. And, here is another picture of John 
Angersola [handing photograph to the chairman]. 

(Exhibit No. 137 on file with committee.) 

Mr. Sullivan. Here is a picture of Sam Taran's home [handing 
photograph to the chairman]. 

The Chairman. It will l>e made an exhibit to your testimony. 

(Exhibit No. 139, see appendix, p. 778.) 

Mr. Sullivan. Here is a picture of Sam Taran's place of business. 

(Exhibit No. 137 on file with committee.) 

The Chairman. What kind of disiributing company is that ? 

Mr. Sullivan. It is listed on the back there. It is a meat-distribut- 
ing business, I believe. 

68958— 50— pt. 1 18 



264 ORGANIZED ORfEyTE IN INTERSTATE OO'MME'R'C'E 

Here is Ralph Buglio, 261 North Coconut Lane, Pahn Island [hand- 
ing photograph to chairman]. 

The Chairman. It will be made part of the record. 

(Exhibit No. 140, see appendix, p. 778.) 

Mr. Sullivan. Here is one of Joe Massei of the Grand Hotel [hand- 
ing photograph to the chairman]. 

The Chairman. Is that the Grand Hotel on Twenty-third Street, 
Miami Beach? 

Mr. Sullivan. Yes, sir. 

The Chairman. He doesn't own the Grand Hotel, does he ? He just 
occupies it just with somebody else? 

Mr. Sullivan. Well, he is thi!re. They claim that he is one of the 
owners. 

Joe Massei at 1062 Northwest Twenty-second Street. There is his 
provision place there [handing photograph to the chairman]. 

The Chairman. It will be made a part of the record (exhibit No. 
137). 

Mr. Sullivan. There is Martin Leo Accardo. 

(Home of Martin Leo Accardo, exhibit No. 141, see appendix, p. 779.) 

Mr. Sullivan. There is Charles Fischetti over there [indicating 
and handing photographs to the chairman]. 

(Home of Charles Fischetti, exhibit No. 142, see appendix, p. 779.) 

The Chairman. Some of them have mighty big residences, don't 
they ? 

Mr. Sullivan. Yes, sir. 

The Chairman. This is Charles Fischetti ? You have been talking 
about him. He is the Charles Fischetti from Chicago ? 

Mr. Sullivan. Yes, sir. Here is Tony Accardo [handing photo- 
graph to the chairman] . 

(Home of Tony Accardo, exhibit No. 143, see appendix, p. 780.) 

The Chairman. How come you have these pictures ? Wliat did you 
take these pictures for? 

Mr, Sullivan. Well, I was trying to find out what I would be able 
to do with them. 

The Chairman. So, that when the committee came you thought 
it would be a good idea to show them. 

Mr. Hunt. I don't think that is 

Tlie Chairman. I didn't mean to make any disparaging remarks. 

Mr. Sullivan. I was trying to find out what I could do with the un- 
desirable people that are here with their pictures and records that we 
have of them. HoweA^er, so far we only have photographs of these 
fellows and can't arrest them because we don't have anything that we 
can arrest them for. 

It has been suggested by some people that I go out and pick them 
up and put them in jail. I am under a $25,000 bond. If I go out and 
start putting people in jail for no reason wliatsoever I am on my bond. 
I have got to find some charge or another to arrest these people for. 
I got to have some charge that will stick. If I were able to employ a 
lot of outside men well then I might be able to find out some more stuff 
that is not actual crimes. 

The Chairman, Are these slips with the descriptions you have been 
reading from for the use of the committee ? 

Mr, Sullivan, Yes, sir. 

The Chairman, Can you give us those descriptions ? 



ORGANIZED CRIME IN INT'EKSTATE OOMMERCE 265 

Mr. Sullivan. Yes, sir [handing documents to the chairman]. 

Tlie Chaikman. Let them be filed as exhibits to Sheriff Sullivan's 
testimony. 

(Exhibit No. 137, on file with committee.) 

The Chairman. You had here a picture of Mickey Cohen and three 
body guards. What did you do with that? Is that just a record? 

Mr. Sullivan. This is a file that we have here [indicating] from 
which we try to find out if we have a record on these men or that we 
can place somthing against them; we don't want them here at all, a 
bit more than somebody else wants them in this State or in their State 
if they are trying to commit a crime. In fact, we don't want them here 
period. But how are we going to get them out if they have not com- 
mitted a crime or are wanted for some other charge ? 

We have pictures of all these criminals here and we have FBI 
records on them. 

The Chairman. Let me have that Mickey Cohen picture. 

Mr. Sullivan. Yes, sir [handing photograph to the chairman]. 
These pictures go with the records there [indicating]. 

The Chairman. All right, we will attach them to the record. 

(Photograph referred to is included in exhibit No. 137, on file with 
the committee. ) 

Mr. Sullivan. Now, here is a record of a local fellow who is an 
undesirable man who has been arrested here many times and taken into 
court. Every time you take him he gets out. He has been arrested in 
other places many times. 

Mr. Hunt. What is his name ? 

Mr. Sullivan. His name is John Nahas and he has been arrested 
for armed robbery, conspiracy to violate the Prohibition Act, arrested 
by State troopers and admitted to the Federal penitentiary, arrested 
for vagrancy, assault and battery; investigation receiving stolen prop- 
erty, investigation operation of bawdy house; investigation of pro- 
curer of bawdy house and prostitution ; operating house of prostitu- 
tion ; operating house of ill fame. 

Quite a number of these are not in Miami. They are in Michigan. 
They are in Indiana. They are in Kansas. They are in Illinois and 
there are several other States that they are in. 

Mr. Hunt. You want to put that in ? 

The Chairman. Yes ; put; that in the record. 

(Exhibit No. 137, on file with committee.) 

The Chairman. Sheriff Sullivan, we are going to have a very short 
recess at this time. We hoped that Mr. Harry Russell would be here. 
That matter, therefore, will be deferred. 

The committee will take a 5-minute recess. 

(A short recess was taken.) 

The Chairman. All right. Sheriff, do you have any other records? 

Mr. Sullivan. Yes ; I do have. I have the balance of these records 
of which we were speaking of at the present time. 

Anyway, at the time we get the finger prints or pictures of these 
people we get their records and if we can make an arrest we make the 
arrest. We have these pictures where we can help other law-enforce- 
ment agencies and the Federal Bureau in Washington which we have 
and they don't have. 



266 lORG'ANIZED ORIIME IX IIS-^T ERST ATE OOMMERCE 

The Chairman. A lot of the complaints, as a matter of fact, that 
have seen sent here came from other county law-enforcement officers 
or States and what not, didn't they ? 

Mr. Sullivan. Yes, sir. 

The Chairman. That information was furnished to you by them. 

]Mr. Sullivan. That is true. 

The Chairman. You put anything you have there in the record, 
Sheriff Sullivan. 

Mr. Sullivan. We have a record of a man which came up here 
yesterday for quite a discussion while this matter was being pre- 
sented, this Sam Millman. His address, his local address is 2609 
Collins Avenue, Miami Beach, and his place of arrest was at Northwest 
Thirty-sixth Street and Thirteenth Avenue, one block east of the Club 
36. He was arrested by one of our men, George Patton at 3 : 35 a. m. 
on May 5, 1950. The above subject was arrested along with Moe 
Rockfeld on suspicion of jewel robbery. He was held for investiga- 
tion and later put into a lineup for identification. People failed to 
identify the subject. Further investigation revealed that subject had 
a record. The subject was charged with "Failure to register criminal 
record.'' He was tried in the court of crimes on June 2, 1950, and was 
found not guilty. FBI record attached. "This Millman, a partner 
of Moe Rockfeld,'- that is the notation on here and his FBI record is 
put in and the last few times that he was arrested. His last time out 
of the State was December 30, 1943, in Jackson, Mich. He was 
charged with conspiracy to obstruct and impede justice and on June 
28, 1945, he was paroled to Detroit, Mich., to serve balance of term 
and on January 10, 1918. he was discharged from parole. 

We arrested him twice here, once at Miami Beach on March 2, 1950, 
for criminal registration with the sheriff's office, Miami, Fhi.. and we 
arrested him which I quoted on May 5, 1950, for investigation for which 
he was recently released. 

That is the only thing that we do when we do have no charge against 
them if the people who come to see them and identify can't say he has 
committed a crime. If we can find out or if people will help us 
instead of saying, "You go out and get it," that would help. 

The Chairman. There is a statute requiring registration by any 
people, or, requiring the registration of any people with a criminal 
record. 

Mr. Sullivan. Felonies. 

The Chairman. Felony records ? 

Mv. Sullivan. Felony records ; yes, sir. 

The Chairman. You just couldn't prove that he was the one that 
committed that offense in Michigan ? 

Mr, Sullivan. He was registered previously with our office and 
also on Miami Beach for a felony record. 

And the case of Moe Rockfeld : 

The following subject is described by the local newspapers and by the crime 
commission as a notorious Detroit and Chicago hoodlum. Moe Rockfeld, alias 
Morris Rockfeld; male white; age 44; address, local, 2(500 Collins Avenue, Miami 
Beach, Fla. IMace of arrest. Northwest Thirty-sixth Street and Thirteenth Ave- 
nue, about one block east of Club 36. Arrested by George Patton. Time, 3: 35 
a. m. on May 5, 1050. 

The above subject was arrested along with Sam Millman on suspicion of jewel 
robbery and booked into tiie county jail. Subject was later put into a line-up and 
victims failed to identify him. 



lORGANIZED CRIME IN INTERSTATE COMMERCE 267 

The subject was later charged with vagrancy and tried in court of crimes in 
absentia and found not guilty. 

He was tried in the court of crimes by his attorney. He was not 
there and his attorney pleaded for him in absentia, and he was found 
not guihy. That was on June 7, 1950. 

Now we have. Senator, these people who come here and they are 
not wasted, see? If any officer would arrest them or if any law- 
enforcement office can arrest them we \vould be happy because we con- 
sider it all right. Any time we get hold of a notorious character we 
lock him up. I know any one of my men would be very happy to do 
that. They think they have done something. They think it is a feather 
in their cap, and I always try to impress the importance of that. I try 
to do something for them to encourage it more. 

That is one of the main things that our papers should do in a case 
of that kind. 

The Chairman. Mr. Sullivan 

Mrr Sullivan. Any time our men go out and perform some out- 
standing duty for the good of the community the}^ should be praised 
for it greatly. They are just human beings, just like other people, 
and you can do a lot more with them if you try to help them insteacl 
of knocking them down every time a chance comes along to do that. 

Here is a picture of Joseph Adonis, alias Doto, and his FBI record, 
which I am going to turn over here. The last time Joseph Adonis was 
arrested was May 9, 19-iO, by the police department in New York. It 
doesn't say "Released" here. It says, "No longer wanted as Joe 
Adonis. Subject arrested an.d released." "No longer wanted," see? 

Now, this is one of the fello-ws here that we received a tremendous 
amount of very, very bad publicity on from time to time. He is from 
time to time in our area, and I tell you that that stuff in our news- 
l^ajiers doesn't do our town no good. 

The Chairman. Is he registered with you, Joe Adonis? 

Mr. Sullivan. Only in that manner. Senator. 

The Chairman. I mean, did he file his felony registration here in 
this county ? 

Mr. Sullivan. Joe Adonis has not filed in our county, I mean, in 
our sheriff's office. We have records of these following men and Joe 
Adonis. 

Frankly, Senator, I can't tell you whether he has filed with us for 
his criminal record. I would say that he has. I don't know if it is 
with the city of Miami or the city of JNIiami Beach. 

This office has records of criminals, criminal records of the following 
men: 

Ralph Buglio, Joe Massei, alias Joe Massey, Sam Taran, Frank 
Erickson, Joe Adonis, Frank Costello, Anthony Carfano, Charles Fis- 
chetti, Moe Rockfeld, alias Morris Rockfeld, Samuel Millman, Jimmie 
Sakelaris (Taran's partner), Isadore Blumenfield, alias Kid Cann, 
Nick Kokenos 

The Chairman. You mean, these people have filed their felony 
registrations with you? 

Mr. Sullivan. We have records of these. 

The Chairman. Everybody has records. Do you have felony regis- 
tration certificates on these? 

Mr. Sullivan. Of these. 



268 lORGAJSnZE'D CEIIME IN INTERSTATE COMMERCE 

The Chairman. You do have ? 

Mr. Sullivan. I am sure we have the ones of these [indicating], 
but we don't have the ones for these [indicating]. 

This office has criminal records of the following-named men 
[indicating]. 

The Chairman. What do you mean by that? You have their 
pictures 

Mr. Sullivan. FBI record. 

The Chairman. And their slip ? 

Mr. Sullivan. Yes, sir. 

The Chairman. But I was asking about the record they are re- 
quired to file when they register when they come in. 

Mr. Sullivan. That definitely I can't tell you. It will be in my 
office if we have it. 

The Chairman. That is very important, isn't it? 

Mr. Sullivan. We have a number of them. Here is one that was 
booked at 11 a. m. on February 28, 1947, in the sheriff's office, Paul 
Pancsko. He was released on a writ of habeas corpus on March 2, 
1947, by order of one of our circuit court judges. This is the gentle- 
man [handing photograph to the chairman]. 

The Chairman. I have seen his picture before. Let's get these 
into the record as quickly as we can. Sheriff. 

(Photographs and records referred to above are included in exhibit 
No. 137, on file with committee.) 

Mr. Sullivan. Yes, sir. We have about 285,000 classifications in our 
office upstairs on the nineteenth floor. 

Here is Paul Labriola that was mentioned here. He was booked in 
the sheriff's office on February 28, 1947, and was released on a writ of 
habeas corpus by one of our circuit court judges [handing photogi'aph 
to the chairman] . 

The Chairman. All right, it will be filed. (Exhibit No. 137.) 

Mr. Sullivan. I got two of those there. I got three right together 
[handing photographs to the chairman]. 

The Chairman. They will be filed. (Exhibit No. 137.) 

Mr. Sullivan. This one, John Kay, was booked by our office and 
released on a writ of habeas corpus on February 28, 1947. Nick 
Kokenes was booked on February 28. 1947, and was released on March 
2, 1947, on a writ of habeas corpus [handing photographs to the chair- 
man]. 

The Chairman. That will be filed in the record. ( Exhibit No. 137. ) 

Mr. Sullivan. Senator, I think it is very important to bring these 
things to your attention, the work that our office does in the county 
and also in trying to relieve the community of undesirable elements. 
Here is a letter from the Sevier County circuit court : 

In I'eply to the telegram received this day from Western Union in regard to 
George Laris stating his case number in circuit court 356. 

I have checked my records and I find that case No. 356 in the circuit court 
of Sevier County, Tenn., was styled: State of Tennessee v. Jimmie Sakelaris, 
alias, who was indicted in the circuit court of Sevier County, Tenn., Mai'ch 2, 1937, 
for arson, and he was tried and convicted in the circuit court of Sevier County, 
Tenn., on July 12 and 13, 1937, a motion for new trial was made by the defendant 
whicli motion was heard by tlie court on July 14, 1947, and the court overruled 
said motion for new trial ; the defendant appealed his case to the Supreme 
Court of Tennessee, sitting at Knoxville, Tenn., which appeal was perfected by 
the defendant and his counsel and pending the appeal the defendant, as I under- 
stand the record, got a pardon from the Governor of the State of Tennessee. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 269 

So far as the records In my office are concerned in regard to case No. 356, the 
defendant, Jimmie Sakelaris, alias, was convicted for arson in the circuit court 
of Sevier County, Tenn., and appealed to the supreme court sitting at Knoxville, 
Tenn., which appeal was perfected so far as my records are c<mcerned. 

If you desire a certified copy of the proceedings as they appear on record in 
my office in Sevier County, Tenn., I will be glad to furnish same but I believe 
that you would get a more complete record by getting in touch with the clerk 
of the supreme court at Knoxville, Tenn., as to the complete i-ecord and also as to 
the pardon granted by the Governor of the State of Tennessee. 
Yours truly, 

H. T. Ogle, 
Circuit Court Clerk. 

The Chairmai^. May I see it ? 

Mr. Sullivan. Yes, sir [hanclino; letter to tlie chairman]. 

Mr. Hunt. Is the record attached? 

Mr. SuTiLivAN. Yes, sir. 

The Chairman. It will be filed as an exhibit (exhibit No. 144). 
Did he file his felony certificate with you ? 

Mr. Sullivan. That, Senator, I can't tell you. I can have that 
checked, yes, sir. However, there is a law here in the State of Florida 
that is compulsory within 10 years. Here is the last current record 
of Frank Costello. This individual form is what we send up there 
to find out about Frank Costello. The arrest was made here on this. 
We found out that Frank Costello, and they said his record and that 
of Frank Saverio were identical. They were the same as the arrest 
that was made in New York City of Costello and Saverio. 

The Chairman. So you have "his record. What did you do with it? 

Mr. Sullivan. This is not the record. This is the form that was 
sent up there with the letter to the FBI in Washington to try to get 
the information to see if he was wanted for something or another, after 
the arrest was made here in Dade County. This is the last known 
address of Frank Costello. 

This is another one: Frank Erickson. The last time he was ar- 
rested here, June 8, 1939, at Queens for perjury, second degree. 

The Chairman. In 1939. 

Mr. Sullivan. Yes, sir. His case was appealed and the defendant 
was released on certificate of reasonable doubt, and $2,500 bond, Judge 
Mayes of the supreme court in 1940. 

This is additional stuff of Frank Erickson. 

The Chairman. Well, Mr. Sullivan 

Mr. Sullivan. Yes, sir ? 

The Chairman. We know that there should have been records on all 
of these people. We don't want to keep all your records here that you 
have. What are you trying to establish by putting all of this in the 
record like that? 

Mr. Hunt. May I say that the charge has been made, and he has 
done the best he can to establish the validity of these charges. 

The Chairman. Here, Frank Costello's record of an arrest in 
1939 

Mr. Hunt. You have to write off 

The Chairman. I don't see what 1939 has to do with the current 
year. 

Mr. Sullivan. Well, I think that up to that time when we got this 
letter, when he had this last skirmish with the law ; that is, the last 
time he was arrested 



270 ORGANIZED CRIIME IN INTERSTATE COMMERCE 

Mr. Halley. May I ask that the point that is being brought up 
here — the job of writing and getting certain police records, every police 
station in the United States has done that and does that. Is that 
what yon are driving at ? 

Mr. Sullivan. No, that has nothing to do with that. 

Mr. Halley. I don't see the relevancy. 

The Chairman. Anyway, let's go on here and get any others that 
you have here. 

Now, are these your original records? We don't want you to de- 
prive yourself the use of them, 

Mr. Sullivan. These were the FBI records which we have obtained. 
They are obtained by each law enforcement department in case they 
have inquiries for this or that case. In that case we pick the man up 
and see what additional charges he has, and what he is wanted for. 
These charges we got, the most of them are all of people whom we 
arrested and were in custody for some charge or another. 

If the chairman would like to have these records, here is a little pre- 
sentment that I would also just like to show. I would like to show you 
the working of our office for 3 montlis. Of course that don't cover 
this year. That covers the year 1946, right after I had been sheriff 
for 1 year. 

The Chairman. Well, can we have that made a part of the record 
also? 

Mr. Sullivan. Yes, sir. 

(Record of Sheriff Sullivan's office for 3 months, second quarter 
of 1946, was marked "Exhibit No. 145" and appears in the appendix 
on p. 781.) 

Mr. Sullivan. That is all for the present time. 

The Chairman. Is there anything else, Mr. Sullivan, that you want 
to bring out ? 

Mr. Sullivan. Senator, I don't have anything to present at the 
present ; no, sir. 

The Chairman. I think I should say by way of explanation that 
the papers that Mr. Sullivan has handed me here are for the second 
quarter of 1946, 3 months. The various arrests are for all kinds of 
things. The total for those months is 1,721, which are for health 
violations; violations of beverage laws; and drunken driving, and 
reckless driving. 

Mr. Sullivan. Senator, you will also notice the gambling cases that 
were brought in, and arrests made at that date ? 

The Chairman. The total is 130 during those 3 months. There are 
cases of drunkenness, delinquent children, and so forth. 

Mr. SuT.LiVAN. Well, I think this will show you our arrests for 
operating gambling places. 

The Chairman. Mr. Sullivan, just before we recess for lunch, these 
FBI records, any law enforcement officer can get them by writing 
for them, and they send some of them out themselves. Also if you 
send a finger]:)rint in to the FBI, they automatically send you the 
record ; is that correct? 

Mr. Sullivan. Yes, that is true, yes, it is. 

The Chairman. Do you have a record of the number of finger- 
prints you liave sent in to the FBI? 

Mr. Sullivan. I believe in our records there we do have. It is 
listed in the records at the office. 



ORGANIZED CRIME IN INTERSTATE OOJVIMERCE 271 

The Chairman. Do you know how many there were ? 

Mr. Sullivan. Well, I don't know off-hand; no, I don't. On each 
record of our yearly record from the office it is on. 

The Chairman. Do you have a record on Harry Russell, Jules 
Levitt, Eddie Rosenbaum, Charles Friedman, and Harold Salvey? 

Mr. Sullivan. If we have records of them there, they were not in 
here. ^ 

The Chairman. Was it well known that they operated the S. & G. 
Syndicate here in Dade County ? 

Mr. Sullivan. They are probably the S. & G. Syndicate operators. 

The Chairman. What do you mean, "probably," Sheriff? 

Mr. Sullivan. That is what I mean, probably, because I can't say 
definitely; because I don't positively know, but they probably are, 
from the many, many reports that we have, and the many arrests 
that we have made which their attorneys or bondsmen come in and 
make a bond or try to spring the witnesses. 

The Chairman. What are some of the things that make you think 
they probably are? 

Mr. Sullivan. Well, as I say, the arrests that we make and the 
rumors that go around, and the gossip that goes around — which it 
does. 

The Chairman. Do you mean some little bookie working for 
them gets caught and their attorney comes in and makes a bond ; is 
that what you mean ? 

Mr. Sullivan. Well that is one of the many things, yes, sir. 

The Chairman. What investigations did you make of this? 

Mr. Sullivan. We have raided at times, a number of the S. & G. 
exchanges, and the only way we know it is the S. & G. is the people 
who make the bonds, and the attorneys who represented them. 

The Chairman. Did you get any of these people in when you 
raided ? 

Mr. Sullivan. Apparently they have never been found at any 
one of the gambling places that we have raided and arrested anyone. 

As I understand, ])eople of the syndicate are not frequent visitors of 
any gambling establishment. 

The Chairman. How about their books and records ? 

Mr. Sullivan. I mean when 

The Chairman. Have you made an investigation of them? 

Mr. Sullivan. I don't believe that my office has that power to do 
that. That is the power of our State's attorney. I believe that our 
county solicitor hasn't the power; however, he has the power to 
subpena them in. 

The Chairman, All right. Do you have any other general state- 
ment you want to make, Sheriff Sullivan? We are going to recess 
pretty soon. 

Mv. Sullivan. No, I was just speaking of what you asked me. 

The Chairman. It is 12 : 30 now. I think the committee will stand 
in recess until 1 : 15 this afternoon. It is quite apparent that we 
\\ ill have to get along very much faster than we have this morning. 

We will stand in recess until 1 : 15. 

(Thereupon a recess was taken until 1 : 15 p. m.) 



272 ORGANIZED CRIME IN mT'ERSTATE OOMME'RC'E 

AFTERNOON SESSION 

(Hearing resumed at 1 : 27 p. m., July 14, 1950.) 

The Chairman. I think, in order that Sheriff Sullivan may have 
any evidence that pertains to him before the committee before he 
finishes his testimony, that in fairness all the way around, since 
we have two other witnesses that have something to say about the 
sheriff's office, it would be best to call them before he resumes his 
testimony. 

Mr. Hunt. Very well. 

The Chairman. Is Deputy Sheriff Hawkins in the courtroom ? 

( No response. ) 

The Chairman. Is Deputy Sheriff Hawkins in the committee 
room ? 

(No response.) 

The Chairman. We would like to have deputy sheriff called, if 
some one of the committee's staff will have him called. 

Mr. Hunt. We will be glad to call him. 

TESTIMONY OF S. R. FULFORD, POLICEMAN, TOWN OF MIAMI 

BEACH, FLA. 

The Chair3Ian. Mr. Fulford, do you solemnly swear that the testi- 
mony you will give this commitee will be the whole truth and nothing 
but the truth, so help you God ? 

]\Ir. Fulford. I do. 

The Chairman. Will you proceed with the questioning of Mr. 
Fulford? 

Mr. Halle Y. Mr. Fulford, were you ever on the staff of the sheriff 
of Dade County, Fla. ? 

Mr. Fulford. I was. 

Mr, Halley. During what time ? 

Mr. Fulford. From the 1st of July 1943 until November 1, 1947. 

Mr. Halley. In what capacity did you serve ? 

Mr. Fulford. I served as a deputy sheriff. 

Mr. Halley. You served as a deputy sheriff ? 

Mr. Fltlford. Yes. 

Mr. Halley. ^Yhilt were your duties ? 

Mr. Fltlford, Well, when I went with the sheriff's office I served 
a number of months on the road patrol; then I served up there on 
the desk, dispatching and taking care of the jail at night; I did that 
for a month, I believe, and then I went from there to the civil depart- 
ment where I was at the time I resigned on October 25, 1947. 

Mr. Halley. "Wliat have you been doing since ? 

Mr. Fulford. I am a policeman for the town of North INIiami. 

Mr. Halley. Have you been in that job ever since you left the 
sheriff^'s office? 

ISIr. Fulford. Yes. 

IVIr. Halley. Do you know a man by the name of Hodges ? 

Mr. Fulford. Yes; I do, 

Mr. Halley. Do you know whether there is any family relationship 
between Thomas Hodges and Deputy Sheriff Burke? 



ORGANIZED CR'IME IIST INTERSTATE COMMERCE 273 

Mr. FuLFORD. Nothing more than what a lady told me who was 
working out of this restaurant on North River Drive. She said that 
he was a brother-in-law of Tom Burke. 

Mr. Halley. Who was the lady ? 

Mr. FuLFORD. She said she was Mrs. Hodges. 

Mr. Halley. About when did you speak to this lady you are talking 
about, Mrs. Hodges? 

Mr. FuLFORD. It was sometime in the summer of 1947. 

Mr. Halley. In the summer of 1947? 

Mr. FuLFORD. Yes. It may have been late spring; it was during 
that, thought ; it was before July, 1947. 

Mr. HalT;EY. Did you stop at this restaurant run by Mr. and Mrs. 
Hodges at that time? 

Mr. FuLFORD. I stopped at this restaurant where the lady identified 
herself as Mrs. Hodges worked. 

Mr. Halley. How did you happen to stop there ? 

Mr. FuLFORD. I went out there to pick up an automobile on a court 
order, and in returning I asked my partner if he w^anted to stop and 
get something to eat. He said, "Yes, I am hungry, too." I said, 
"Let's stop at Pop Ley's place.'' The last time I was in this place it 
was operated by Mr. Ley ; he is known as Pop Ley. 

Mr." Halley. What is your partner's name ? 

Mr. Fulford. At that time it was Mr. Goldman. 

Mr. Halley. What is his name? 

Mr. Fulford. Abe. 

Mr. Halley. A-b-e? 
' Mr. Fulford. That's right. 

Mr. Halley. Is he still in the sheriff's office ? 

Mr. Fulford. No, sir. 

Mr. Halley. Mr. Fulford, what happened when you stopped at 
this restaurant? 

Mr. Fulford. We went in and sat down at a counter, and this lady 
came by and she took our order. I asked for Mr. Ley and she said he 
wasn't there any more, that he had moved. So we ordered some barbe- 
cued ribs, and in the meantime she came out and there was a conver- 
sation between her and Mr. Goldman. She asked us if we were detec- 
tives and Goldman asked her why she asked that, and she said, "You 
look like it." So we told her we were from the sheriff's office, in the 
civil department, and she said, "I have a brother-in-law" — that lady 
Avho a few minutes before had identified herself that she was Mrs. 
Hodges, said that she was the wife of Mr. Hodges and that Mr. Hodges 
was a brother-in-law of Mr. Burke. I said, "Who; that old man?" 
and she said, "You better not call him old." That was the end of our 
conversation while we were there at that time. 

Mr. Halley. W^iat happened next after that? 

Mr. Fulford. We came to the office, and either that day or the fol- 
lowing day the chief of the criminal division sent for us to come up. 
Mr. Harkness, who was then chief of the civil department, told us 
that Mr. Hawkins wanted to see us. So Goldman and I went up to 
see him, and he asked me what were we doing out there at this bookie 
joint, and I said, "What bookie joint." He said, "Do what you ought 
to do, but not go back down there." He said we were out there in 
that restaurant. I asked him where he got his information from and 
he said he got it from Mr. Burke. 



274 lORGANIZE'D CRIIME IN ESTTE ESTATE COMMERCE 

Mr. Halley. What happened next ? 

Mr. FuLFORD. The following day after limch I was standing in the 
door of the civil department when Mr. Burke came along. I called 
to him and he said, "What do you want," so I walked up to him and 
hit him on the shoulder and took him into the office and I asked liim 
why he was going around trying to start something about where I 
stopped to eat. I said to him, "I will eat anywhere I want to eat so 
long as I have the money to pay for it." I said furthermore, "I would 
like for you to keep out of my business, because if you don't" — Captain 
Buford who at that time was chief deputy 

Mr. Halley. Wliat is his name ? 

Mr. FuLFORD. Buford. I said to Burke, "If you don't keep out of 
my business I will stomp the hell out of you, and I will eat anywhere 
1 like to eat." Likewise I told Mr. Hawkins. So I guess Mr. Burke 
decided that I w\as possibly upset and intended to try it, so he moved 
off and quieted down, and then he wanted to talk. I said to him, "I 
didn't know there was a bookie joint out there. I stopped in that 
restaurant to eat." He said, "Well, it is out there for you and if you 
don't get it it is your own damn fault. If you can't get it there I can 
take you to a couple other places." 

Mr. Halley. Get what ; what was he talking about? 

Mr. FuLFORD, Money. I asked him, "Why did you go to Mr. Haw- 
kins? There was no shakedown there." He said, "If you don't get 
it, it is your own fault ; if it is not there, I can take you to a couple 
places," and then he walked off, and I have never spoken to him since. 

Mr. Halley. Did you say there was plenty for everyone? 

Mr. FuLFORD. Yes. 

Mr. Halley. Was anybody else present during this conversation ? 

Mr. FuLFORD. Yes. It was Mr. Goldman, who was working with 
me at the time, and there was another deputy also in tlie office, but 
when the little skirmish started he got out about half way between the 
door and the exit. 

Mr.. Halley. What is that other deputy's name? 

Mr. FuLFORD. Harry Cheetham. 

Mr. Halley. Did Goldman hear this; was he right there? 

Mr. FuLFORD. Yes. Goldman was standing there. 

Mr. Halley. Goldman was the man who was with you when you 
went into this Hodges' restaurant; is that right? 

Mr. FuLFORD. Yes. There was no bookie joint in that restaurant. 

Mr. Halley. During the year 1947 did you have occasion to go into a 
dry-cleaning place out there at the shack? 

Mr. FuLFORD. Out on Southwest Eighth Street? 

]\Ir. Halley. Yes. 

Mr. FuLFORD. That's right. 

INIr. Halley. Will you tell us what happened ? 

Mr. FuLFORD. We had another court order on an automobile and 
we had four or five different addresses. 

Mr. Halley. Who do you mean by "We?" 

Mr. FuLFORD. Goldman and I. We worked together for the last 
year and a half I was there. He came in tliere after I was working 
there, and he worked with me I thiuk for approximately a year and a 
half. I lived out there near this little shack dry-cleaning place, and 
it is convenient for me to have my dry cleaning done there. I had 



ORGANIZED CRIME IN ESTTERSTATE OOMMERCiE 275 

lived around there for about a year and a half. Well, I searched the 
tourist camp to no avail, and I went to this lady who runs the dry- 
cleaning place there and I asked her if she had such a name as that on 
her book. I thought possibly that if he stayed in that place he would 
leave his laundry there with her. She said "No." I described the car 
to her and she said the only person who could have an automobile like 
that would be the peo]ile in the back. She faces Eighth Street. Mr. 
Goldman asked her, "What do you mean in back," and she said, "Well, 
there is a bookie joint going on back there." 

She has a litle boy who I suppose is around 12 or 13 years old now 
and I have known' him since before he started going to school, and he 
came to me and he said, "Mr. Fulford, they have a lot of telephone 
wires in there. We children were out there playing and they called 
us some awful names and chased us away." I said. "What were you 
doing," and he said, "We were peeping through the crack." So Mr. 
Goldman told me — he says, "You set your watch with mine, and I am 
going to walk across there and in 5 minutes follow me." We set our 
watches together and in 5 minutes I walked over there. During the 
time that he was over there, I don't know what happened. I didn't 
see it. At the end of 5 minutes I walked over and when I arrived he 
was talking to a man, and I walked up within about 5 feet and stopped, 
and of course I heard most of the conversation from there on out. 

Mr. Halley. Who was talking? 

Mr. Fulford. Mr. Goldman was talking to a man who I learned 
came out of this building back of the Eight Twenty Bar. 

Mr. Halley. What was the conversation? 

Mr. Fulford. What had gone on before I don't know. I don't 
know whether Mr. Goldman identified himself as a deputy sheriff or 
not, but he asked ]\Ir. Goldman in my presence — he said, "Do you 
know Mr. Burke and Mr. Branning," and he says, "Yes, I do," and he 
says, "They are the big shots down there, are they not." I don't know 
what the reply was. I didn't hear what Mr. Goldman said. But I saw 
this man Mr. Goldman was talking to write down a name and telephone 
number, which I later learned was his telephone number. 

Mr. Halley. Do you know the name of the man that Goldman was 
talking to ? 

Mr. Fulford. If my memory serves me right his name was Hoskins. 

Mr. Halley. Hoskins ? 

Mr. Fulford. Yes. 

Mr. Halley. Do you know why he wrote this name down ; did you 
hear anything about the reason for writing the name and telephone 
number down ? 

Mr. Fulford. Yes ; I did. I heard Mr. Goldman say, "If these fel- 
lows are close to you maybe you should give me your telephone num- 
ber where I can get in touch with you," and he wrote the number and 
name down on a piece of paper that he took out of his pocket. 

Mr. Halley. Did you and Golchnan make an arrest at that time ? 

Mr. Fulford. No ; we didn't. We didn't even go into the place. 

Mr. Halley. Why not? 

Mr. Fulford. Well, my understanding was when I went to the civil 
department that I was to do civil work except the few times I was called 
out on Saturday afternoon to go with some member of the criminal 
division. 



276 lORG'AJSnZEP CRIIME IK INTERSTATE COMME'RCE 

Mr. Halley. Mr. Goldman was a member of the criminal division ? 

Mr. Fltlford. No; Mr. Goldman was in the civil department the 
same as I was. At this particular place the door was locked and we 
couldn't make an arrest ; we didn't see anything on which to make an 
arrest. 

Mr. Halley. Did you ever have a conversation with Deputy Hawk- 
ins about raiding gambling places ? 

Mr. FuLFORD. He told Mr. Goldman and I one afternoon that we 
"v^ere to lay off of any raids. 

Mr. Halley. What was the occasion for saying that ; what had 
happened ? 

Mr. FuLFORD. That was over on the beach ; we had made a raid over 
there. 

Mr. Halley. Who made the raid ? 

Mr. Fui.FORD. Mr. Goldman and I. 

Mr. Halley. Did you make an arrest? 

Mr. FuLFORD. We did. 

Mr. Halley. Right after that did you have this talk with Deputy 
Harkness ? 

Mr. FuLEORD. That's right. 

Mr. Halley. He said you were not to raid any more gambling 
places ; is that right? 

Mr. FuLFORD. Yes. 

Mr. Halley. Did he say where the order came from ? 

Mr. FuLFORD. I don't recall. He stood there and talked a little bit. 
He seemed to hesitate to hurt our feelings. He said that that was the 
chief's orders and that we were not to do anything any more. 

Mr. Hali^y. You are sure he didn't say that the order came from 
Sheriff Sullivan ? 

Mr. FuLFORD. He possibly could have said that, but I couldn't say 
because there is a lot of noise in there, and of course Mr. Harkness is a 
very old man and he don't talk too loud. 

Mr. Halley. Did he say that the order had come from someone other 
than himself ? 

Mr. FuLFORD. Yes ; but he didn't say who. 

Mr. Halley. He did say that they were the orders ? 

Mr. FuLFORD. Yes. 

Mr. Halley. Did you ever ask Hawkins of the sheriff's office to raid 
a house of prostitution? 

Mr. FiTLFORD. I talked to him for quite a while ; over a year. 

Mr. Halley. During what period was this ? 

Mr. FuLFORD. It was through 1946 and up until 1947, the day that 
I resigned. 

Mr. Halley. Was the place raided ? 

Mr. Fulford. It was raided the day I resigned. 

Mr. Halley. How long after the first complaint was that ? 

Mr. Fulford. I had been complaining about it for quite a while: 
approximately a year. 

Mr. Halley. Why did you resign ? What was the occasion of your 
resignation ? 

Mr. Fulford. The day following this episode at the 820 Bar, Mr. 
Goklman was fired. He came out to tell me he was fired. Then I 
went in and asked Sheriff Sullivan could I talk to him a minute, be- 
cause I figured if Mr. Goldman was fired for somethinjr that he did 



ORGANIZED CRIME IN INTERSTATE COMMERCE 277 

in line of duty, I was out there too and I wouldn't want to make the 
same mistake again if I stayed on. 

The sheriff refused to talk to me, so I resigned effective then and 
I remained there until the 1st of November, until he got some men to 
take our places, 

Mr. Halley. And then did you get the job you presently hold ? 

Mr. FuLFOKD. That is right. 

Mr. Halley. Is there anything else you know that you woidd want 
to tell this connnittee about the operations of the sheriff's office? 

Mr. FuLFORD. No. When I was there, I put everything I had into 
my work, and I went ahead. I had about all I could do anyway. I 
had a lot of work to do and of course at night during the winter 
season I worked the two dog tracks. 

Mr. Halley. Do you know whether Harry Cheetham is still in the 
sheriff's office ? 

Mr. FuLFORD. I haven't seen Mr. Cheetham in 4 or 5 months. As 
far as I know, he is. 

Mr. Halley. And you said that Mr. Goldman is not; is that right? 

JNIr. FuLFORD. That is right. Mr. Goldman was fired the 25tTi of 
October 1947. 

Mr. Halley. Do you know i f he is in Miami ? 

Mr. FuLFORD. Yes ; he is in Miami. 

Mr. Halley. Would you be able to give the committee his address? 

Mr. FuLFORD. Mr. Goldman has moved and I don't know his address, 
but I know his telephone number because he still has the same tele- 
phone number. I just came back off my vacation and he moved just 
before I left. 

Mr. Halley. When you leave the witness stand, would you give 
that number to Mr. Garrett of the committee's staff ? 

Mr. FuLFORD. Yes, sir. 

Mr. Halley. Have you by any chance noticed either Mr. Goldman 
or Mr. Cheetham in the courtroom ? 

Mr. FuLFORD. I haven't seen either one of them in here. Wlien I 
was standing back and looking over the crowd, I didn't see either one 
of them. 

Mr. Halley. Following which incident did you resign? I think 
you testified that Goldman was fired and then you quit. What was 
it that happened leading to Goldman's being fired ? 

Mr. FuLFORD. I don't know. That is what I went in to ask the 
sheriff about, but he wouldn't tell me. 

Mr. Halley. After which of the matters that you testified to did 
it occur ? 

Mr. FuLFORD. This was the one out on the Trail and Le Jeune Road, 
at the 820 Club. The next dav after that Mr. Goldman was fired. 

Mr. Halley. What happened at the 820 Club? 

Mr. FuLFORD. That is where he went back to the back and 5 minutes 
later I walked back there myself, and he w^as talking to a man, Hoskins 
I think was his name, and he was the man who gave Mr. Goldman a 
name and some numbers on a sheet of paper. I saw it at a distance. 
I never did look at them. 

Mr. Halley. I think you testified that Goldman got into an argu- 
ment with Burke, or that you and Goldman got into an argument 
with Burke? 



278 ORGAJSriZED CRIIME IN INTERSTATE OOMMEKCE 

Mr. FuLFORD. Mr, Burke reported to Mr. Hawkins. That was after 
this affair at Hodge's place, but that was some time prior to that. 

Mr. Halley. I have no further questions. 

The Chairman. Senator Hunt, do you have any questions ? 

Senator Hunt. I have no questions. 

The Chairman. I have no questions, Mr. Fulf ord. Tliank you very 
much. 

Mr. FuLFORD. Thank you. 

The Chairman. Mr. Goldman's name has been brought out in this 
matter and I would like for the staff to see if they can find him. Let's 
see if we can't present this testimony briefly. Is Mr. Hawkins here ? 

Mr. Hawkins. Yes, sir. 

The Chairman. All right. Come around, ]\Ir. Hawkins. 

TESTIMONY OF J. L. HAWKINS, CHIEF CRIMINAL DEPUTY, 
SHERIFF'S OFFICE, DADE COUNTY, FLA. 

The Chairman. Do you solemnly swear that the testimony you will 
give this committee will be the whole truth and nothing but the truth, 
so help you God ? 

Mr. Hawkins, I do. 

The Chairman. All right, Mr. Halley. 

Mr. Halley. Did you hear the testimony of the last witness ? 

Mr. Hawkins. No, sir, I just arrived, 

Mr. Halley, Did you ever have occasion to reprimand any of the 
deputy sheriffs in the sheriff's office ? 

Mr, Hawkins, At times, 

Mr, Halley, What was your position in the sheriff's office ? 

Mr, Hawkins, During what years, sir? 

Mr, Halley. Will you state when you first entered the sheriff's 
office? 

Mr. Hawkins. January 2, 1945, as a bookkeeper until March of 1946. 

Mr. Halley. And then what position did you hold? 

Mr. Hawkins. Then I went to the hospital and when I came out 
from the hospital I was transferred upstairs. 

Mr. Halley. To what position ? 

Mr. Haavkins. Chief criminal deputy. 

Mr. Halley. How long did you hold that job? 

Mr. Hawkins. Up until this present date, 

Mr. Halley. You are still chief criminal deputy? 
_^ Mr. Hawkins. Yes, sir. 

Mr, Halley, Have you ever heard of a man named Thomas Hodges? 

Mr. Hawkins, Yes, sir, 

Mr, Halley. Will you state whether or not you know whether he is 
related to Deputy Sheriff Burke? 

Mr. Hawkins. I have heard some hearsay. I couldn't sa}^ under 
oath that I did know it. I heard hearsay of it. 

Mr, Halley, Bearing in mind that it is hearsay, would you state 
to the couunittee what the hearsay is? 

Mr, Hawkins. The hearsay, yes; I believe brother-in-law. 

Mr. Halley. Did it ever come to your attention that Deputy Sheriff 
Abe Goldman and Deputy Sheriff S. R. Fulford had been at a restau- 
rant operated by Thomas Hodges and Mrs. Hodges? 



ORGANIZED CRIME IN INTE'RSTAT'E COMMERCE 279 

Mr. Hawkins. It w^is never called to my attention, sir. They 
worked under the branch of the civil department. 

Mr. Hai.ley. I will try to restate the testimony that the committee 
has just heard, in which Mr. Fulford said that he and (ioldman visited 
the restaurant operated l)y Mr. Hodp's and Mrs. Hodges, and that 
t he next day you reprimanded them for going, I think he said, "to that 
bookie joint." 

Mr. Hawkixs. Xo, sir. 

Mr. Halley. And he said that you told them to lay off of gambling. 

Mr. Hawkins. No, sir. 

Mr. Halley. That did not happen ? 

Mr. Hawkins. Xo, sir. May I interrupt? 

Mr. Halley. Please. 

Mr. Hawkins. If there would be any such thing like that, I would 
have referred it to the civil department. They didn't get their explicit 
orders from me. If they were assigned to my department for any 
such work as investigating gambling, then I would consider them 
under my command for that particular occasion, but they specifically 
worked out of the civil department, and I at no time reprimanded 
any man for making an investigation of any gambling or an arrest in 
any gambling. In fact. I give them a pat on the shoulder for it. 

Mr. Halley. JMr. Fulford testified that he complained several times 
to you about a house of prostitution in operation very close to the 
place where he resided. 

Mr. Hawkins. I don't know where he resided at that time. 

Mr. Halley. Did he ever complain to you about a house of prostitu- 
tion ? 

"SLv. Hawkins. Any complaints on houses of prostitution were im- 
mediately investigated and if arrests were made, which our records 
will show, arrests were made. 

Mr. Halley. Would you answer the question? The question was. 
Did Mr. Fulford ever complain to you about a house of prostitution? 

Mr. Hawkins. That I couldn't say from memory. We had several 
deputies from there who made complaints. He may have, but I 
wouldn't remember right now. Mr. Halley — is that your name? 

Mr. Halley. Yes. 

Mr. Hawkins. I wouldn't remember right now. 

^Ir. Halley. You have no recollection ? 

Mr. Hawkins. Not right offhand. We have had numerous com- 
plaints, and they Avere immediately investigated and arrangements 
made for trying to make an arrest and conviction in the court, which 
we had plenty of. sir. 

Mr. Halley. Mr. Fulford said he complained to you off and on 
about that house and it was finally raided the day or the day after he 
resigned. 

Mr. Hawkins. What address; may I ask that question? 

]Mr. Halley. I am sorry, but I don't have that information for you, 
but I am sure Mr. Fulford does. 

Is Mr. Fulford in the courtroom? 

Aside from the address which I wouldn't expect you to remember, 
don't you remember whether or not Mr. Fuiford over the period of a 
year complained to you about a house of prostitution? 

Mr. Hawkins. No, sir. Any complaint in regard to houses of 
prostitution or any complaints of any violation of the law were in- 

68058 — 50— pt. 1 19 



280 ORGANIZEIV CMME IN INTERSTATE COMMERCE 

vestigated as soon as possiblie ; at all hours of the night and the early 
morning. 

Mr. Halley. Mr. Fulford, Mr. Hawkins said he doesn't remember 
whether or not you complained about a house of prostitution, but I 
think he has indicated that he w^ould like to know the address of the 
particular place that you had in mind. 

Mr. Fulford. The same place I knocked off; on the corner of 
Twelfth Street and Seventy-first Avenue SW. 

Mr. Hawkins. They have been arrested half a dozen times. 

Mr. Fulford. That is right. 

Mr. Hawkins. And not from complaints only, but from the people 
who lived in the neighborhood also. 

Mr. Halley. Will the records of the sheriff's office show whether 
it was arrested for 1 year prior to the date that Mr. Fulford resigned ? 

Mr. Hawkins. That I couldn't say, Mr. Halley. 

Mr. Halley. The records show that one way or the other. 

Mr. Hawkins. It is there on the record what date it was. I know 
I personally conducted two arrests at the place myself. 

Mr. Halley. Would you check the records and bring them to the 
committee at your earliest convenience ? 

Mr. Hawkins. I would be happy to, sir. 

Mr. Halley. Thank you. 

The Chairman. That is all. 

Mr. Hawkins. Thank you. 

The Chairman. Is Mr. James Ivo present? 

(No response.) 

The Chairman. See if you can find Mr. Ivo. 

Meanwhile Mr, Jack Fulenwider will come around. 

TESTIMONEY OF JACK FULENWIDER, FORMER INVESTIGATOR 
FOR CRIME COMMISSION OF GREATER MIAMI 

The Chairman. Do you swear tlie testimony you will give this com- 
mittee will be the whole truth and nothing but the truth, so help you 
God? 

Mr. Fulenwider. I do. 

The Chairman. Mr. Fulenwider, did you work for the Greater 
Miami Crime Commission doing investigations at one time? 

Mr. Fulenwider. Yes, sir. 

The Chairman. On what occasion did you have first-hand evidence 
of some alleged violations and did you report it to somebody ; and if so, 
tell what you saw and what you reported and what happened. 

Mr. Fulenwider. On Monday, February 27, 1950, I was sent on an 
investigation by Dan Sullivan to investigate two men who were sup- 
posed to be either tapping telephone lines or installing telephones in 
bookies on the beach. I liad the information that these men lived at 
3799 Northwest Twelfth Terrace in Miami and that they left the house 
around 9 o'clock in the morning. I went to this address and arrived 
at the address at 8 : 20 a. m. 

Of the two men that were described to me, one was about 30 years 
old, 5 feet 11 inches, 185 pounds, with black hair, and had a pock- 
marked face. The other fellow was about 5 feet 8 inches, about 185, 
round face, light complexion, slightly bald, and chubby. That is all 
the description we had on the men. 



ORGANIZEl> CMME IN ENTKRSTATE OOMMEROE 281 

When we arrived at this address we saw two men come ont of the 
house that answered this description. They got into a LaSalle sedan 
at 8 : 20 a. m. and they headed north on Thirty-seventh Avenue to 
Seventeentli Street NW., east to Twenty-seventh Avenue and north 
to Twentieth Street and proceeded toward Miami Beach. 

The driver of this car was a very wild driver. He really got in and 
out of traffic, and we lost him at Northeast Second Avenue and Twenti- 
eth Street. 

The CiiAiRMAX. Just give us such details as are necessary to get up 
to the point. 

Mr. FuLENWiDER. I picked up the car again in the back of an address, 
600 Lincoln Road, where there was a sound company called the Twin 
City Sound Co. there. 

About 10 minutes after we arrived there, these two men came out 
of the sound company, got in their car, and they started out the alley. 
At about the same time they started out, the telephone-company truck 
pulled in and the driver of the truck hollered to them to stop. So 
they got out in the street and the three men — the man got off the truck 
and the two men got out of the car there — talked for 3 or 4 minutes. 

The truck driver backed his truck up and pulled down an alley in the 
700 block on Lincoln Road and the car with the two men followed. I 
stood there and watched the two men and the truck driver unload tele- 
phone equipment — telephones, boxes, different things out of this truck 
into the automobile for about 15 minutes. 

We followed the car then north to Collins Avenue to the San Souci 
Hotel. They parked in the rear of the hotel and the No. 2 man entered 
the hotel and the No. 1 man sat in the car a few minutes and then he 
went in the cabana section of the hotel and they were in there for 
quite some time, and the one man would carry a box of tools with him. 

They came out and went into the Embassy Hotel across the street 
from the San Souci Hotel with the tools and the equipment. They 
were only in there a few minutes and then they came out of there. 

Both men went into the Sea Isle Hotel at 2 : 30 p. m. that day, and 
at 2 : 40 p. m.. 10 minutes after they entered the hotel, the pock-faced 
boy came back out and got a dial telephone out of his car and went 
back into the hotel. The one fellow stayed there and this other guy 
came out and went to an address at 1528 Drexel Avenue, which I 
believe the property there is owned by Jules Levitt. He was in there 
for a few minutes and then came out and went to the Bancroft Hotel, 
all the time carrying his tools in the building or the hotel, whichever 
he went into. 

The Chairman. Did you see some wire, horse-racing or telephone 
equipment somewhere, and did you report it? Let's get down to the 
meat of what you have to sny. 

Mr. FuLENWiDER. I had a telephone investigator with me the next 
day and we went up by the Sea Isle Hotel and stood outside of Cabana 
No. 22 and heard results from the races right at 2 o'clock. 

We went inside the hotel and I watched this cabana No. 22, and I 
saw several telephones in there — dial telephones — about three or four 
dial telephones in there in the cabana and they were making book 
all right. Everybod}^ had scratch sheets and pencils and when this 
one fellow spotted me — I think he suspected me — he whispered some- 
thing to the guy and they closed it up and they told all the patrons 
to leave and everybody left and went out. 



282 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chaikrian. Wliat was it you reported to the sheriff's office, or 
to the prosecuting attorney's office ? 

Mr. FuLENWiDER. After I completed this investigation of seeing 
the actual taking of the equipment right out of the truck, Mr. Sullivan 
called up Mr. Zarowny of the county solicitor's office and made an 
appointment for me to come up there and explain the details of it, 
who investigated that there had been a larceny of a telephone, and 
the telephone company was advised of this and they were willing to 
prosecute. 

The Chairman. Was the telephone man with you ? 

Mr, FuLENWiDER. No, sir ; not when the actual taking of the equip- 
ment was done. 

The Chairman, Did he advise you he was willing to prosecute ? 

Mr. FtJLENwiDER. Yes, sir. 

The Chairman. Wliat happened ? 

Mr. FuLENwiDER. I wcut to the county solicitor's office and I talked 
to Michael Zarowny, and he was trying to figure out a legal way that 
could be used so this thing could be handled and to have these men 
picked up. 

He called down to the deputy sheriff's office and, if I am not 
mistaken, it was Shields. I talked to Shields about it and told him 
the circumstances, and he informed me that it was a little bit out 
of his hands and it would have to go to the chief criminal investigator, 
who was Claude High, 

So, I went upstairs to Claude High myself and told him the story, 
about all that we had seen and he flatly refused to give any aid. He 
told me that we probably fouled up the investigation so bad that 
nothing could be done about it and that is where the thing stands 
right now. 

The Chairman. Did you tell him you were willing to help or do 
anything that was best? 

Mr. FuLENWiDER. Yes. 

The Chairman. And that you had the telephone man ready to j 
prosecute? 

Mr. FuLENwiDER, Yes, sir. 

Senator Hunt, Have the telephone people taken any additional 
interest in this? 

Mr. FuLENWiDER. I dou't know whether they have or not. 

Senator Hunt. You don't know whether thev are following it up or 
not? 

Mr. FuLENWiDER. No, sir. 

The Chairman. That is all. Thank you. 

Is Mr. Ivo in the courtroom? 

(No response.) 

FURTHER TESTIMONY OF S. M. PERKINS, ACCOUNTANT. AND 
JAMES A. SULLIVAN, SHERIFF, DADE COUNTY, FLA. 

Mr. Perkins, This is the set of books for the night club that started 
May 2, 1949, I thought you might want to see them. 
The Chairman, What night club ? 
Mr, Perkins, Charlie's Inn, 

The Chairman. What is the address of the night club? 
Mr. Perkins. 323 Twenty-third Street, Miami Beach. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 283 

The Chairman. When did it close operations? 

Mr, Perkins. It is not closed. We used these books along with the 
set of books we gave j^ou yesterday, but we got them so messed up that 
we decided to keep them over the night club itself to see if we could 
find out if he was making money or not. 

The Chairman. We will make this journal and ledger an exhibit to 
your testimony. (Exhibit No. 146. Later returned to witness after 
analysis by committee.) 

Mr. Perkins. Here is a copy of the income-tax reports and the work 
sheets and papers from the year 1936 through 1949. 

The Chairman. For whom ? 

Mr. Perkins. Charlie and Sam Friedman. (Income tax reports 
referred to were marked "Exhibit No. 147" and later returned to 
witness.) Here are the 1950 bank statements and canceled checks 
through June 1950. (Exhibit No. 148. Later returned to witness.) 
You said you may want to see them. 

The Chairman. We will endeavor to get these back to you tomorrow 
noon. 

Mr Perkins. That is all. 

The Chairman. Sheriff Sullivan. I believe you have completed 
your general statement. Is there anything you want to add at this 
time? 

Mr. Sullivan. Yes, Senator. You just had a man in here that laid 
an eye of suspicion on me. That was Sam Fulford, who said he was 
with Abe Goldman. 

When I let Abe Goldman go from the civil department — Abe and 
Sam worked in our civil department — Sam w^as going to run for con- 
stable in district 2, which is this area, downtown area, of Dade County. 

After I learned that I was going to have three and possibly more of 
my men who were going to run for a political office while they were 
working in my department, I formed a letter and I gave it to the chief 
of my civil department and the chief of my criminal department and 
also the chief of my road patrol and I asked them to put this letter in 
a place where these men who have intentions of running for a public 
office can read it and the sum and substance of that letter was that if 
they run for a public office I would probably help them in any way that 
I might, but that they couldn't remain in my office and go around 
soliciting people to vote for them and obligate my office and serve 
papers and not serve papers and killing witness subpenas, and if they 
were going to run for these public offices they could go right ahead 
and announce tlieir intentions to do so, and tell me when they are going 
to resign from the department. These two men didn't do that. They 
campaigned everywhere, so I called Abie — he was the one that w^as 
doing most of the campaigning for Sam, and I told Abe, I said, "Abe, 
this morning I am going to let you go." I said, "You read that letter ? 
You have seen that letter?" and I said, "My men have got to respect 
the office and the orders that I give." 

I let Abe go and as he walked out, it wasn't 5 minutes until Sam 
walked in said, "Sheriff, I'm leaving, too, since you let my partner go. 
If he is guilty of something, I am." 

I said, "O. K., Sam, it's all right. You can stay if you want to." 

The Chairman. So you did talk to him. You didn't refuse to talk 
to him?" 



284 iORGANIZE'D CRilME IN LNTEiRSTATE OOMMERCE 

Mr, Sullivan. No. He said, "Well, Sheriff, if you like I will work 
until the 1st," and I said, "O. K., Sam." To the 1st or the 15th— I 
don't remember — but it was up to the pay day. I said. "O. K„ Sam. 
That is up to you." He left. That was pertaining to that particular 
incident. 

The Chairman. Mr, Fulford, I understand, wasn't running for 
office, was he ? 

Mr. Sullivan, Yes, sir. 

The Chairman. Both he and Mr. Goldman, too? jj 

Mr. Sullivan. They were partners; yes, sir. ;^ 

The Chairman. They were both running for constable ? 

Mr. Sullivan. One of them was. 

The Chairman. Mr. Fulford was running for constable ? 

Mr. Sullivan. Mr. Fulford was running for constable. 

The Chairman, And Mr. Goldman was not? 

Mr. Sullivan. No. 

The Chairman. Mr. Goldman got fired first, didn't he ? 

Mr. Sullivan. That is right. 

The Chairman. And then Fulford resigned? 

Mr, Sullivan, That is right. 

The Chairman, Is there anything else? 

Mr, Sullivan, Now, this account of the place at Drexel Avenue 
that you just had brought in here by Jack Fulenwider, I think in due 
fairness to Shields, who is the deputy sheriff and one of my homicide 
investigators in the office, he should be brought in here and you 
should ask him what happened. 

In that particular place where the boys went over there, I believe, \ 
if I am not mistaken, they took either six or eight telephones on Drexel 
Avenue, I am not sure. However — this affair that is supposed to 
have taken place at the 820 Club on Le Jeune Road, I never heard of it 
before. 

The Chairman. Sheriff, before you testify further, I understand 
Mr, Goldman has come in and I know in fairness to you you should 
follow his statement. Perhaps he has some statement that he would 
like to make. So, will you stand aside just a minute ? 

Mr. Sullivan. Yes, sir, 

TESTIMONY OF ABE GOLDMAN, PUBLIC RELATIONS AGENT, 

MIAMI, FLA. 

The Chairman. Do you solemnly swear the testimony you will give 
this committee will be the whole truth and nothing but the truth, so 
help you God ? 

Mr. Goldman. I do. 

The Chairman. All right, Mr. Halley. 

Mr. Halley. What is your name and occupation ? 

Mr. Goldman. Abe A. Goldman, public relations agent, city of 
Miami. 

Mr. Halley. Did you ever work for the Dade County sheriff's 
oflSce ? 

Mr. Goldman. I did. 

Mr. Halley. During what year? 

Mr. Goldman. 1945 to 1947. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 285 

Mr. Halley. Were you present here in the courtroom when Mr. 
Fulford testified a little while ago ^ 

Mr. Goldman. No ; I just got here. 

Mr. Halley. You are here pursuant to a subpena ; is that right? 

Mr. Goldman. Yes, sir. 

Mr. Halley. May 1 ask you first, Have you ever had an argument 
or a fight with Sheriff Sullivan? 

Mr. Goldman. No, sir. 

Mr. Halley. Do you have any grievance against him? 

Mr. Goldman. No, sir. 

Mr. Halley. Did you ever have occasion to eat in a restaurant 
owned by a Mr. Hodges ? 

Mr. Goldman. Yes ; I did. 

Mr. Halley. Were you with anybody at that time? 

Mr. (lOLDMAN. Yes, sir, with Mr. Fulford. 

Mr. Halley. Did anything happen while you were in that restaur- 
ant? 

Mr. Goldman. The only thing that happened was that there was 
a young lady back of the counter, w^aiting on it, that weighed about 
180 or 190 pounds, and she asked if we were from the police depart- 
ment, if we were police officers, and I said, "Do I look like a police 
officer?"' and I said, "If you would like to know, w^e are out of the 
sheriff's office," and she said, "I have a brother-in-law that w^orks in 
the sheriff's office,*' and I said, "You mean Mr. Burke?" because I 
knew his relatives were in this place. I said, "You mean old man 
Burke?" and she said he would resent that because he is very proud 
of his physical prowess, and I said I was just kidding. "He's a pretty 
good fellow.'" 

She said, "You know, I would like to have a job like yours," and I 
said, "What kind of a job?"" and she said "Being a policewoman," and 
I laughed and she said, "What are you laughing at?" and I said, 
"Damned if you ain't big enough."' That was the conversation that 
took place. 

Tlie Chaikm'n. Mr. Goldman, this is all tremendously interesting 
but let"s get to the point. 

Mr. (tOldman. That is the only conversation I held over there. 

The Chairman. All right. Go ahead. 

Mr. Halley. What happened next with reference to that Hodges 
situation? 

Mr. (70LDMAN. Mr. Fulford and myself arrived back at the court- 
house and we were told by Mr. Harkness, our boss, that the chief 
criminal deputy, Mr. Hawkins, wanted to see us on the sixth floor. 

We immediately went up and he came out of the criminal courtroom 
and met us in the hall. Hawkins' approach was, "Were you two fel- 
lows in the neighborhood of North West North River Drive?" and 
I said, "We were within the vicinity there getting something to eat. 
I hope there is no objection as to where we go to get our meals." 

He said, "No ; just wanted to know about it." 

Fulford then spoke and he said, "I guess you know what this is the 
start of. That is Tom Burke"s brother-in-law trying to put the heat 
under us. I am going to run down and close them up and never let 
them run as long as I am a deputy sheriff." 

Mr. Fulford had some words with him and visited them every day 
for the next couple of weeks and the doors were kept locked. We kept 
pretty close check on it. 



286 ORGANIZED CRIIME IN INtTERSTATE COMMERCE 

Mr. Haij:.ey. Mr. Fulford testified about a conversation he had 
with Mr. Burke in your presence in the course of the discussion about 
Hodges. Do you remember anything in addition to what you have 
already said? 

Mr. Goldman. Mr. Fulford was pretty hot about this call from the 
chief criminal deputy about having been out there and eaten in this 
restaurant about 20 feet in front of the building that housed that 
bookie joint. Burke was coming through the courthouse and the 
sheriff was out of town at the time and he took him back in the 
sheriff's private office and he told him that Mr. Fulford slapped him 
down upstairs on the nineteenth floor and that he got up. and if he 
slapped him down he wouldn't get up and if he didn't leave him alone 
he was going to stomp him to death in the sheriff's office. 

Mr. Burke turned white and said, "I meant no harm, Mate," which 
was a byword of his. 

He said, "I thought possibly you were getting a little something. 
If you aren't you are damn fools because I am getting mine and if 
you don't know where to get it, I will take you to some places and I'll 
show you where to get it and how to get it." 

Mr. Halusy. Get what? 

Mr. Goldman. Talking about money. 

Mr. Halley. Was there any further conversation at that time? 

Mr. Goldman. No, sir ; not that I recall. 

Mr. Halley. Do you remember ever going to a dry-cleaning place 
called the Shack with Mr. Fulford looking for a Buick automobile? 

Mr. Goldman. Yes, sir. 

Mr. HalIxEY. When did that happen? 

Mr. Goldman. It happened on the 24th of October, 1947. We had 
been searching for a car on the beach and everywhere else. It was a 
1946 black Buick convertible coupe. Fulford got word that there was 
a car like that seen in that neighborhood and he had been taking his 
dry cleaning to the woman that ran this place. I went in with him and 
he asked the lady if she had seen anybody in that neighborhood that 
owned a 1946 black Buick convertible coupe, and her answer was, "If 
anybody in this neighborhood owns a car like that, it is the bookies 
in back of me," and I said, "Don't tell me you got bookies here, too," 
and she said, "As if you gents don't know it," and I said, "I certainly 
didn't know it, and to prove it, I will go back there and knock it 
off." 

I turned to Fulford and I said, "Check your watch against mine and 
follow me over there in 5 minutes. 

In the meantime there was a little boy about 7 or 8 years old, a red- 
headed fellow — probably this woman's son, and he said, "I can tell 
you all about it." I said, "How do you know so much about it?'' and 
he said, "We ]:)lay in the yard and I was there when the telephone 
com])any dug the trench and put the cables in for a lot of phones, and 
I can hear the conversations quite often." 

So this woman then said, "That's a fine state of affairs when child- 
ren are exposed to it that way." 

I went back to the place alone and there was a Yale lock on there, 
oue of those flat locks, and knocked on the door and got no answer. 

There is a building called the 820 Chib that is 20 feet in front of 
this building both owned by the same num. The man that owned it 



ORGANIZED CRIME IN INTERSTATE COMMERCE 287 

used to be in the septic-tank business when — after he was with the 
zoning department. 

lie came out of the phice and said, "What are you doing here?" I 
said, "Let me ask you the same question." 

Mr. Halley. Do you know his name? 

Mr. Goldman. I don't recall it, sir. He said, "I run this bar." I 
said, "Do you run the book in the back?" and he said "No." I said, 
"Do you know who runs it?" and he said, "Yes," and I said, 'Ask 
him to come out. I want to talk to him." 

We went to the bar and called him on the phone. All this time 
took about 3 or 4 minutes and as this fellow came out of the bookie 
joint, Mr. Fulford approached me from the other side. They both 
reached me at about the same time and the man that owned the 
building walked over and I said, "There are some complaints about 
you ojierating a book there; is that true?" 

He said, "This is my headquarters for six or eight books that operate 
in this county." 

I said, "I can't go through a locked door, but I'll certainly be back 
with a search warrant and a fire ax and we will tear that door down." 

He said, "Can I talk to you freely" — this man that owned the build- 
ing said, "Can I talk freely?" and I said, "Certainly you can talk 
freely." and he said, "Do you know Burke and Branning?" and I 
said, "I certainly do." 

Mr. Halley. Who is Burke? 

Mr. Goldman. Tom Burke. 

Mr. Halley. And Branning? 

Mr. Goldman. The sheriff's brother-in-law, one of the deputies. 

I said, "Yes, I know them. They are top men." 

He said, "Yes, they are. I have made arrangements to operate 
here and I pay $100 a month in the summer and $:200 in the winter." 

Well, I said, "We will see if you have that kind of protection," and 
I said, "AVhy don't you write your name and phone numbers down on a 
piece of paper so I can turn it over to Mr. Burke and he can offer you 
that protection," and he wrote his name and numbers down in his 
own handwriting on a piece of paper for me. 

Mr. Halley. Did you say $100 a month in the summer? 

Mr. Goldman. Yes, and $jiOO a month in the winter. 

Mr. Halley. Where were they taking that? 

Mr. Goldman Burke and Branning; that was his statement. 

Mr. Halle^'. What did you do with that piece of paper upon which 
he v/rote his name and the })hone numbers? 

Mr. Goldman. 1 have them wrapped in a piece of cellophane in my 
23ocket. 

Mr. Halley. Would you present it to the committee? 

Mr. Gold:man. Yes, sir. [Handing paper.] There is the date on 
the back of it. 

Mr. Halley. One of the connnittee's staff asked you if you had any 
evidence ? 

Mr. Goldman. Yes, sir. 

Mr. Halley. And you found this? 

Mr. (lOLDMAN. Mr. Garrett asked me. I kept that in my possession. 

Mr. Halley. I offer this in evidence, Mr. Chairman. 



288 ORG'AlsriZED CRIIME ES' INTERSTATE COMMERCE 

The Chairman. That will be exhibit No. 149. (On file with com- 
mittee.) That is a piece of paper at the top of which it says "Hoskins 
48-9612" and what is the other? 

Mr. Goldman. Emniett or Eddie ; they are two brothers. 

The Chairman. Emmett or Eddie. 48-9091 ; home. 9-4710. 

Is that date correct? October 24? 

Mr. Goldman. Yes. 

The Chairman. On the back is 10-24-47. And here is something 
else written on it — 4-9169 c/o — I can't read the balance of it. 

Mr. Goldman. That was another book we located on the next corner 
from there. 

The Chairman. We will take good care of this. Mr. Goldman. 

Mr. Goldman. The reason I remember that date so well is that the 
following mornino; I was fired. 

Mr. H ALLEY. What happened the following morning? 

Mr. Goldman. The sheriff called me in his office and he said, "I am 
sorry, but we are going to reduce our personnel." 

Mr. Halley. Were you running for constable at that time? 

Mr. Goldman. No, sir. 

Mr, Halley. Was Mr. Fulford running? 

Mr, Goldman. No, sir; he hadn't made up his mind whether he 
would be a candidate or not. 

Mr. Halley. Had he announced for his candidacy ? 

Mr. Goldman. No, sir. 

Mr. Halley. You didn't resign, did you ? 

Mr. Goldman. No, sir. 

Mr. Halley. Wliat happened ? 

Mr. Goldman. The sheriff just called me and said, "We are reduc- 
ing our personnel," and then I said, "It seems strange it would be me 
because there have been men put on since me," and he said, ''Well, if 
you will sign a resignation, I will give you 2 weeks pay in advance." 

I said, "I am not resigning, so there's no need to sign one." 

He said, "I will take your commission," and I tossed it over on his 
desk, and then I started out the door and he said. "I will take your 
badge, too," and I said, "The only way I will give that up is for some- 
body to take it because I had it for 14 years. D. C. Coleman presented 
that to me and I'm not giving it up." And I told him that in my 
opinion I was being fired for enforcing the law. 

Mr. Haixey. What happened then ? 

Mr. Goldman, As I came out 

The Chairman. What did he say about it? 

Mr. Goldman. He didn't answer that. He said that is it. 

The Chairman. What is it? 

Mr. (jold:man. That was the end of the conversation. When he 
came out, Mr. Fulford was there and I said I just got fired and he 
said, "That finishes me, too." But I don't know what happened up 
there. 

A newspaperman came over to me later and said, "How aboiit a 
statement ?" and I said, "You can get your statement from the sheriff.'* 

That afternoon the front ])ages came out and said that Goldman 
had resigned effective immediately. It said that Fulford was to run 
for office and I was to be his campaign manager. I called flohn T. 
Bills on the phone and told him I would like to tell the truth about 
it and refute what the papers had said. He went on the air at 6: 30 



iorgajStized crime in interstate oommebce 289 

that night and I said that the sheriff had made a misstatement. I did 
not resign. I liad been fired and in my opinion for enforcing the law. 

Mr, Halley. You said that on the radio ? 

Mr. Goldman. Mr. Bills did it in my behalf. 

Mr. Halley. Were you present ? 

Mr. Goldman. No, sir. I was listening to the radio. 

Mr. Halley. What station ? 

Mr. Goldman. WQAM. 

Mr. Halley. Do you know Deputy Sheriff Harkness? 

Mr. Goldman, Yes, sir. 

Mr. Halley. Wliat is his full name ? 

Mr, Goldman, A. G. "Al." 

Mr. Halley. Was he the former chief of the civil division? 

Mr. Goldman. Yes, sir. He was the man we worked under. 

Mr, Halley. Did he ever give you any orders concerning gambling? 

Mr. Goldman. He only gave us instructions one time. I think it 
was the first or second raid on the beach. The time we made one we 
were called to the nineteenth floor by the chief of the criminal divi- 
sion and he wanted to know why we made this raid. We had a very 
peculiar detail. We had to go out in the county on writs of posses- 
sion and so on, not knowing where these books were and if we found 
them we were to bring them back. 

Mr. Harkness said, "The chief just told me to tell you fellows that 
you were not to make any more raids, and not to let you know that 
the orders came from him, but to be sure that it came from me. That 
that was your position." He said, "I told the sheriff I thought you 
men were too intelligent to swallow that, but I would give the order 
but I certainly didn't think you would believe them." 

I said, "Mr. Harkness, what would you do under those circum- 
stances," and he said, "I would carry out my oath of office." 

Mr. Halley. Is there anything else you want to tell this commit- 
tee, Mr. Goldman ? 

Mr. Goldman. No, sir. I didn't relish telling anything. I was sent 
for and I have answered your questions. 

The Chairman. Mr. Goldman, you didn't hear Mr. Fulf ord testify ? 

Mr. Goldman. No, sir. 

The Chairman. You came in right afterward. 

Mr, Goldman. I just got here a few minutes ago. 

The Chairman, How old are you ? 

Mr, Goldman. 57, 

The Chairman, Are you married and have you lived here a long 
time ? 

Mr. Goldman, Born and raised in this State, 

The Chairman. Do you have your home here ? 

Mr, Goldman, I have my home, two children and a grandson. 

The Chairman, Have you ever been in any kind of trouble before? 

Mr. Goldman. No, sir; no more than traffic violations. 

The Chairman, And you are now the director of public relations 
for the 

Mr, Goldman, No, I am public relations agent for the city in the 
engineering department. 

The Chaiiuman, Of the city of Miami Beach ? 

Mr, Goldman, No, the city of Miami, 



290 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. That is all I have to ask. 

Senator Hunt, 

Senator Hunt. I haven't anything. 

The Chairman. Did you follow up on this telephone installation? 

Mr. Goldman. Yes, sir. I reported them to Mr. Tucker, the man- 
ager of the telephone company, and they were removed several days 
later. 

The Chairman. They were removed from the bookie joint? 

Mr. Goldman. Out of that place. 

The Chairman. A day or two after you were discharged? 

Mr. Goldman. Yes, sir. 

The Chairman. I believe that is all, sir. We thank you. 

TESTIMONY OF ALISTAIR G. HARKlTESS, DADE COUNTY, FLA. 

Tlie Chairman. Mr, Harkness, do you solemnly swear that the 
testimony you will give the committee will be the whole truth and 
nothing Jbut the truth, so help you God? 

Mr. Harkness. I do. 

Mr. Halley. Is your full name Alistair Harkness ? 

Mr. Harkness. That is right. 

Mr. Hallet. Were you formerly in the civil department of the 
sheriff's office in Dade County ? 

Mr. Harkness. Yes. I have been for the past 16 years. 

Mr, Halley. Are you still? 

Mr. Harkness. No, not now. 

Mr. Halley. Did you resign? 

Mr. Harkness. No, I haven't resigned. I was very sick last year 
and I couldn't get the work done any longer, so the sheriff kept me in 
another capacity. 

Mr. Halley. Were you in the courtroom to hear part of the testi- 
mony of Mr. Goldman who just testified? 

Mr. Harkness. Yes, sir. I sat right over there. 

Mr. Halley. Did j^ou hear him testify with reference to youreelf ? 

Mr. Harkness. Yes, I heard what he said. 

Mr. Halley. Is that testimony true or untrue ? 

Mr, Harkness. The testimony is true. I told both Mr. Goldman 
and Mr. Fulford that the sheriff had instructed me that I was to tell 
them to lay off on any raids as we had enough civil work in the office 
for them to devote all their time to. That is what I told them. I 
said, "Those are instructions from the sheriff." 

Mr. Halley. Is there anything else you want to say in that connec- 
tion? 

Mr. Harkness. There is nothing else. I don't know how far they 
went with it because I was assigned to the civil department and I had 
no time for criminal work. 

Mr, Halley, That is all. 

The Chairman. That is all. Thank you, Mr, Harkness. 

Has Mr, Ivo gotten in yet ? 

(No response.) 

The Chairman. We can't wait for Mr. Ivo. 

Sheriff Sullivan, will you come around and we will not interrupt 
your testimony any more. 



ORG'AXIZED CRIME IN E^JTERSTATE COMMERCE 291 

njRTHER TESTIMONY OF JAMES A. SULLIVAN, SHERIFF, DADE 
COUNTY, FLA., ACCOMPANIED BY RICHARD M. HUNT, AT- 
TORNEY 

T]ie Chairman. Sheriff, you were telling us about Mr. Goldman or 
some matter sucli as that and you have heard the further testimony 
that has been brought out before the committee. Do you have any 
comment about that ? 

Mr. SuLLivAx. I do have. 

The Chairman. All right, sir. 

Mr. Sullivan. We just had to put oii a number of more men in our 
civil department to try to take care of our civil work. We had quite 
a time keeping our men who are employed for certain work to go 
ahead and do that work. 

All the men that are employed in the sheriff's department have 
orders that regardless of what department they work in, if they see 
a violation of the law, such as a felony, they are to make an arrest and 
bring the case in to the court and let the court dispose of it. That is, 
all my men, whether in the civil or criminal or on the road patrol. But 
for my men to try to spend most of their time not taking care of the 
work that they have to do, you must draw a line somewhere. So what 
are you going to do ? 

The job that those men had — the full job of carrying out the 
processes of the court, of our civil court and the circuit court — mostly 
civil courts 

The Chairman. Do you know this handwriting. Sheriff [handing 
Exhibit No. 149 to witness] '^ 

Mi". Sullivan. I don't know that I do. I don't know that I ever 
saw it before. Senator. 

The Chairman. "VVlio is Hoskins? And what are those other two 
names ? 

Mr. Sullivan. Hoskins and Emmett or Eddie. That I don't know. 
I know there used to be a Hoskins out at Seventeenth Avenue and 
West Flagler Street. They run a beer place on the corner which 
would be the northeast corner of the intersection, but outside of that 
Hoskins, I wouldn't know. I probably would know them if I did see 
them, but I don't know them from that. 

The Chairman. ^Y\lo was it that said this man was related to 
somebody ? 

Mr. Sullivan. I have a deputy sheriff' named Branning. That is 
..he one you are speaking of, that is related to me. 

The Chairman. Your brother-in-law ? 

Mr. Sullivan. He married my sister, yes. 

The Chairman. You have said earlier that Mr. Goldman said you 
fired him because of reduction in force. That is what he said you 
fired him for, the day following this raid or this visit with this place. 
You said you fired him because he was participating in a race for 
constable on behalf of Mr. Fulford ? 

Mr. Sullivan. That is right. I have the letter in my department, 
down in my office somewhere. 

The Chairman. That is a letter that you wrote ? 

Mr. SuLLiA'AN. Yes. 

The Chaii MAN. These gentlemen said Mr. Goldman was not run- 
ning for constable and that Mr. Fulford hadn't made up his mind. 



292 ORGANIZED CRffME EST INTERSTATE COMMERCE j 

Mr. Sullivan. He was campaign manager and they had made up 
their minds to run before and which they did run. 

The Chairman. Were you apprised of this visit out to the place 
where they got this number? 

Mr. Sullivan. No, sir. 

The Chairman. On the day you called them in ? 

Mr. Sullivan. No. 

The Chairman. You don't think it is coincidental your firing of 
them happened to come the day after ? 

Mr. Sullivan. No, sir. I didn't know anything about it whatsoever. 

The Chairman. Then you do think it is coincidental ? 

Mr. Sullivan. There is no connection. 

The Chairman. It is an unusual circumstance. 

Mr. Sullivan. There is np connection. 

The Chairman. All right, sir. Is there anything else, Sheriff? 

Mr. Halley. Sheriff Sullivan, did you hear the testimony of Burke 
yesterday with respect to a man named Crosby? 

Mr. Sullivan. Yes; I did. 

Mr. Halley. Would you tell the committee what happened with 
reference to Crosby ? 

First, when did Crosby first come to your office? 

Mr. Sullivan. Well, I can't tell you the date. I wouldn't be fa- 
miliar with the dates, but it was some time in the season of tli^ year — 
in the winter season of the year. 

Mr. Halley. Mr. Burke thought it was in January of 1949. 

Mr. Sullivan. It could have been. Maybe it was. 

Mr. Halley. That is W. O. Crosby; is that right? 

Mr. Sullivan. I believe it is Bing Crosby. 

Mr. Halley. His nickname is "Bing" Crosby? 

Mr. Sullivan. That is right. 

Mr. Halley. And he came to your office; is that right? 

Mr. Sullivan. He came to my office ; yes. 

Mr. Halley. What did he tell you ? 

Mr. Sullivan. He came in the office and said that he would like to 
talk with me, and I said "O. K." He said he would like to talk to me 
in private, and I said "Fine." So we walked over in the southeast cor- 
ner of the nineteenth floor in the sheriff's department and sat down and 
he handed me a letter signed by our Governor, Fuller Warren, instruct- 
ing me to cooperate with Crosby in any gambling that was found in 
Dade County. He would appreciate the cooperation of my office. 

Mr. Halley. Do you have a copy of that letter ? 

Mr. Sullivan. I may have in my office. 

Mr. Halley. Do you have the original of it ? 

Mr. Sullivan. I j^robably do. 

Mr. Halley. You brought a lot of records in here this morning. 
That is one matter that was testified to yesterday. Didn't it occur 
to you and your counsel that the committee might be interested in that 
subject? 

Mr. Sullivan. Well, I had these letters here and I was right here all 
dav with you, so 

Mr. Halley. In any event, the letter asked you to cooperate with 
Crosby? 

Mr. Sullivan. It did. 



ORGANIZED CRIME IN INTERSTATE OOMMEKCSE 293 

. Mr. Halley. Will you produce that letter for the committee as soon 
as possible ? 

Mr. Sullivan. I will. (Letter referred to entered as exhibit No. 
150. Later examined and returned to witness.) 

Mr. Halley. Did it specify what kind of gambling or did it just 
say gambling in general? 

Mr. Sullivan. Gambling in general, I believe. 

Mr. Halley. Are you sure ? 

Mr. Sullivan. I am not sure; I believe. 

Mr. Halley. Was there any special reference to slot machines? 

Mr. SuLuvAN. No; not that I can remember. The letter will state 
that when I get it. but I don't think there was. 

Mr. Halley. What did Crosby say ? 

Mr. Sullivan. "Here is a letter from the Governor.'' He said, "I 
have been here in town for some time and I do find that there is 
gambling going on in quite a number of places in Dade County." 

Mr. Halley. He came right after January 194:9; is that right? 

Mr. Sullivan. I don't know what date he came. I certainly can't 
tell you that. 

Mr. Halley. What hap})ened next with reference to Mr. Crosby? 

Mr. Sullivan. He asked me would 1 give him some men to go with 
him to see if there was gambling at these places, and I said, "I certainly 
will.'' I said, "Not only that, but I will send many more men over 
there,'' and I called in a couple of men. I don't remember the first 
men I sent out with Crosby, whether it was Burke the first time or 
whether it was Patton — I am sorry. I can't tell you which ones, but 
it was two men, I believe, the first time or the second time, maybe. 

He had information of some places and they did make arrests. 
Also, my men who I had sent over there, most of them made quite 
a number of arrests. 

Mr. Halley. Did Crosby or Burke report back to you? 

Mr. Sullivan. They came back — I don't know whether it was the 
next morning or three or four or five mornings later. I can't say 
about the reporting back because he was to go and if they saw gam- 
bling, to bring them in. 

Mr. Halley. How long did Crosby stay on the job? 

Mr. Sullivan. I don't know. 

Mr. Halley. I mean in the Miami Beach area, looking for gam- 
bling ? 

Mr. Sullivan. I can't say. He was back in here and out from time 
to time. 

Mr. Halley. Isn't it a fact that he gave up after just a few days? 

Mr. Sullivan. Oh, no. 

Mr. Halu:y. Are you sure? 

Mr. Sullivan. I am iwsitive; yes. I don't know how long he was 
investigating the gambling. 

Mr. Halley. What other men did you send out with him besides 
Burke? 

Mr. Sullivan. Well, definitely, Mr. Halley, I can't tell you. I don't 
know. 

Mr. Halley. Did vou send them out with any other men? 
J Mr. Sullivan. I did. 

Mr. Halley. You did ? 



294 ORGANIZED CKIME IN INTERSTATE COMMERCE 

Mr. Sullivan. Yes, sir. I don't know whether it was Fatten or 
Shields or McElroy. I don't know who it was. 

Mr. Halley. Will your records show ? 

Mr. Sullivan. They would show the arrests; yes, sir. 

Mr. Halley. How many arrests did Crosby make? 

Mr. Sullivan. Mr. Crosby didn't make any arrests. 

Mr. Halley. How many arrests did your men make on the basis of 
the investigation conducted with Crosby ? 

Mr. Sullivan. Well, definitely, I couldn't tell you but — I am not 
up there all the time. 

Mr. Halley. You have presented some very exhaustive records to 
the committee. Don't you have records that would show that? 

Mr. Sullivan. Oh, yes. We have some of the records, the end 
sheets, in our jail. 

Mr. Halley. Will you bring those records in ? 

Mr. Sullivan. The end sheets? 

Mr. Halley. I mean the records which will show what arrests were 
made on raids where Crosby was present. 

Mr. Sullivan. I can't say if there was. I can't say if there was. 
I can't say how many were made while he was here, whether 5 or 10, 
or what tliey were. My office is in the civil department, on the first 
floor of the courthouse, and the criminal department is on the nine- 
teenth floor. 

Mr. Halley. Mr. Burke indicated yesterday that Mr. Crosby's 
methods were very crude and that he was violating the law in making 
his arrests, and that the whole investigation was very unsatisfactory 
from his point of view. Did he ever complain to you about it ? 

Mr. Sullivan. Well, Burke did say, "Sheriff, I can't get this infor- 
mation and make these arrests without warrants." 

He said, "I want to get warrants to where we won't be — where our 
office will be taken care of and we won't be sued." 

Mr. Halley. Did he say anything else ? 

Mr. Sullivan. I said, "You can take care of the office and you don't 
have to break any doors down, unless you have a warrant to break the 
doors down, or unless you take the gamblers from public property." 

Mr. Halley. Burke testified that he never went out on any more 
raids with any warrants for arrests with Mr. Crosby; isn't that so? 

Mr. Sullivan. Mr. Halley, I can't tell you definitely about that. 
He may have and he may not have. 

Mr. Halley. Did you hear him testify ? 

Mr. Sullivan. I heard him testify. 

Mr. Halley. Did you think he was telling the truth? 

Mr. Sullivan. He could have been. I won't say he wasn't telling 
the truth. I imagine he was. 

Mr. Halley. Have you ever known him not to tell the truth? 

Mr. Sui^LivAN. I can say this here : When we wanted something 
really torn up, he was the man that we could depend on to tear it up. 

Mr. Halley. Burke? 

Mr. Sullivan. That is right. 

Mr. Halley. Was his work that satisfactory ? 

Mr. Sullivan. It was. 

Mr. Halley. As I understand it, he was forced into a resignation 
last year, in the middle of 19-19 ; is that right ? 



ORGANIZED CRIME IN USTTERSTAT'E CDMMERCiE 295 

Mr. Sullivan. Well, he wasn't forced into what you call a resig- 

""^mThalley. Well, he was let to know that he was unwelcome, 

"" M^ SuLvAN. Well, I talked with Tom a couple of times. He came 
in one day and said, "Sheritf, I am goino; to take off for a while. 

Mi- Haixey. What did you talk to him the time before he decided 

^'^Mr.'s^LivAN. As I say, I have around 100 men working arouiid 
there and my men go ahead, and they have their automobiles ihey 
Imve tS F Jrds, Chevrolets; and Plymouths. Tom has a Dodge. 

Mr. Halley. Didn't he have a Chrysler ? , .-f u 

Mr SuLLWAN. I think it was a '46 Dodge I hea«l him testify it 
was a '44, and I heard him testify it may have been a 4o 

Mr hIlley. And then he testified that he had a '48 Chrysler? 

Mr" Hunt. He will tell you, if you let him finish his answer. 

Mr. Halley. Mr. Hunt, we are getting along fine 

Mr Sullivan. I believe it was a '4(> Dodge that lom had, and he 
traded that car for this Chrysler, and Tom was always on the ]ob 
early in the morning. He would come down and get our crimina 
records from the criminal court, and he would have everythmg all 
set up when most of the other people would get down there. He was 
down there early and took a pride in working the criminal court. 
That is Judge Ben Willard's court. i u- 

So I iust'alked to Tom, and I said, "What did you buy such a big 
automobile for? The rest of my men don't feel like taking on a car 
like that, and it iust kind of makes it hard on me and the other boys. 

He said, "Sheriff, I bought this car, alid I traded my other car on it 

as a down payment." . i • i, » 

I said, "Yes, but the payments are kind of higfi. 
He said, ''That is true, but I am getting $75 a month to operate this 

^^We had cars in our department that we own, which our men also 
used at night with radio communications, and his own individual cur 
or the boys' individual cars didn't have radio^ communications. So 
that was it, and Tom said, "I am going to resign." , ^ , f 

Mr. Halley. And you were mad about his having spent a lot ot 
money for an automobile ? 

Mr. Sullivan. It didn't look right. 

Mr. Halley. Why ? v i i • i ^ 

Mr. Sullivan. You understand why it doesn t look right. 

Mr*. Halley. I would like to have you say why. 

Mr. Sullivan. I believe Tom was making $350 a month. 

Mr. Halley. $250 or $350. . ^^^ j. ■, • 

Mr. Sullivan. His salary was, I think, $275 and $75 for his car. 

Mr. Halley. For operating expenses? 

Mr. Sullivan. That is right. 

Mr. Halley. But that had to cover his actual expenses ot gas and 
otherwise; is that right? 

Mr. Sullivan. That is true. \ j ^ ^ ^i. ^ 

Mr. Halley. And the chances are that he spent a good deal ot that 
$75 in actuallv running the car ? „ . , n . 4? 

Mr SuLLiv\x. 1 am telling you that we furnished two-way cars tor 
most of our boys Pi.d i)articu'larly when they owned these cars and 



68957— 50— pt. 1- 



296 ORGANIZED CRIIME IN INTERSTATE COMMERCE 

went out on these investigations and raids, tliey would have to have 
communications with the office from time to time, to look up different 
parts of the investigation that are in the office. 

Mr. Halley. His salary was $275 a month ; is that right ? 
Mr. Sullivan. I believe it was. 

Mr. Halley. And you thought it didn't look right for a man earning 
$275 a month to have bought a new, expensive automobile; is that 
right ? 

Mr Sullivan. That is true. However, I will say this : Tom was a 
very conservative man and his home and his yard looked like they had 
perfect care at all times. He really had his yard beautiful, with beau- 
tiful plants all over. He specialized in different kinds of plants. 

Mr. Halley. That is why he quit; because you argued with him 
about the automobile? 

Mr. Sullivan. I suppose that is it. 

Mr. Halley. We will get back to that in a moment. Do you remem- 
ber hearing former Deputy Sheriff Howden testify ? 

Mr. Sullivan. Yes. 

Mr. Halley. Do you remember his having said as a part of his 
statement that Deputy Burke was resigning because you had bawled 
him out for having bought an expensive automobile? Do you re- 
member hearing that ? 

Mr. Sullivan. I heard something about his being mad about some- 
thing. 

Mr. Halley. Do you remember seeing Deputy Burke get on the 
witness stand and say that he disagreed with the facts as Mr. Howden 
stated them? 

Mr. Sullivan. Yes ; I do. ' 

Mr. Halley. Would you disagree with Mr. Howden's statement 
that you had reprimanded Burke severely for having bought an ex- 
pensive automobile ? 

Mr, Sullivan. No ; I didn't reprimand him severely. 

Mr. Halley. Do you mean you chided him gently ? 

Mr. Sullivan. I just told him that it isn't right. I told him I didn't 
think he should buy this big car, and I frankly thought he ought to get 
rid of it. 

Mr. Halley. Bnt you didn't reprimand liim severely? 

Mr. Sullivan. No. 

Mr. Halley. Burke is a man who had lived an outdoor life, and he 
is not a sensitive soul, is he, Sheriff? 

Mr. Sullivan. Mr. Halley 

Mr. Halley. What I am getting at is why did he resign ? 

Mr. Hunt. Please let him finish his answer. 

Mr. Halley. I am trying to help him. 

Mr. Hunt, You don't have to hel]) him. 

The Chairman. Just a minute, Mr. Hunt. Sheriff Sullivan is testi- 
fying and I think we are getting along pretty well except that Ave are 
going awfully slow, so let's try to get along with the testimony. 

Mr. Sullivan. Yes, Mr. Halley? 

Mr. Halley. All I am trying to ^^vt at is if it was a \ erv gentle repri- 
mand, why did Burke quit? 

Mr. Si'LLivAX. Well, T didn't curse at him or 1 didn't shout at him. 
It is not my policy to do that. 



ORGANIZED CRIME EN" INTE'RSTATE COMMERCE 297 

Mr. Halley. When did Burke quit ? It was in the middle of 1949, 
wasn't it? 

Mr, Sullivan. I believe you have the date there. 

Mr. Halley. Around June, 1949; is that right? 

Mr. Sullivan. It was some time around that date. 

Mr. Halley. Why did you wait a year to rej^rimand him for some- 
thing — for having bought an automobile in 1948? 

Mr. Sullivan. That is what I am telling you about this. I repri- 
manded Burke right after he bought the car. 

Mr. Halley. You said he quit right after you reprimanded him 
and he testified he bought the car in 1948. 

Mr. Sullivan. He didn't quit after I reprimanded him. He did 
work and said, "Sheriff, I am going to take off. I've got some work 
I have to do in my home down here and I am going to go and take care 
of my grove." 

Mr. Halli:y. He waited a year to quit? 

Mr. Sullivan. I don't know how long it was. 

Mr. Halley. You say Tom said he was going to take care of his 
grove ? 

Mr. Sullivan. That is right. He said he had some work he had 
to do. 

Mr. Halley. He said that he didn't buy the grove until June of 1949, 
I believe. 

Mr. Sullivan. I can't be specific or definite about those dates because 
it was just purely a reprimand about buying the car and having all 
my other men out there saying, "I can't buy that kind of a car." 

Mr. Halley. You reprimanded him after he bought the car, didn't 
you? 

Mr. Sullivan. I did. 

Mr. Halley. That that was about a year and a half later? 

Mr. Sullivan. I don't know when he quit, but that is when it was. 

Mr. Halley. Something else happened, though, to cause him to 
quit. You asked for his resignation, and there was a reason for it, 
wasn't there? 

Mr. Sullivan. No. it was all about the car. 

Mr. Halley. Was there more than we already have ? 

Mr. Sullivan. Not that I know of, no. 

Mr. Halley. Deputy Hawkins was in charge of the criminal side of 
your office? 

Mr. Sullivan. Howden was my chief criminal deputy until he got 
sick and went to the hospital. He was sent to the hospital by Dr. 
Chambers and Dr. Thomas. 

Mr. Halley. When was that? 

Mr. Sullivan. I am sorry, but I can't give you the definite date. 

Mr. Halley. Wasn't it about the same time that Burke" quit? 

Mr. SuLLFv^vN. No, I don't believe so. However, he was in the hos- 
pital and we didn't think he would ever recover. It was something 
he got in the First World War. 

Mr. Halley. Wasn't there really some trouble growing out of the 
Crosby visit? Didn't some friction arise between Crosby and the 
people who had sent him and Burke as a result of which Burke was 
asked to resign and Hawkins relieved of his job? 

Mr. Sullivan. In no way. 



298 (ORGAJ^IZE'D CEIME EST LNTERSTAT'E COMMERCE 

Mr. Halley. Didn't Crosby leave the Miami area within a very 
short time after he arrived in January of 1949 ? 

Mr. Sullivan. Well, I guess he left, but he was back several times. 

Mr. Halley. Didn't you send word to the Governor of Florida that 
you were responsible for law enforcement in Dade County and that 
you didn't want Crosby making gambling pinches in Dade County? 

Mr. Sullivan. No, sir ; because if I remember, he didn't make any 
gambling pinches in Dade County. 

Mr. Halley. He tried awfully hard though, didn't he? 

Mr. Sullivan. Whether or not he tried he had no authority to make 
gambling pinches in Dade County. He told the officers to do it. 

Mr. Halley. He had Burke with him, didn't he? 

Mr. Sullivan. I think Burke was with him on three, four, or five 
occasions and if Burke wasn't there he took another man from the 
office. Whoever was there he got. 

Mr. Halley. How many times did he ask the office for help after 
I think the three occasions that Mr, Burke mentioned ? 

Mr. Sullivan. Well, I don't know that — that is kind of hard to say. 
I don't know how I will be able to tell you. 

Mr. Halley. Isn't it a fact that Mr. Crosby just stopped trying to 
get any furtlier help from the sheriff's office of Dade County in 
finding gamblers and arresting them ? 

Mr. Sullivan. No. If I remember right — I don't remember if he 
was down here in March — he was here in February and March several 
times. 

Mr. Halley. Was there a man named Bowers ? 

Mr. Sullivan. I don't know any name, any man named Bowers, 

Mr. Halley. Did you ever hear of a man named Bowers i 

Mr. Sullivan. I heard of him, George Bowers. 

Mr. Halley. You heard of him ? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. Wasn't he down liere with Crosby ? 

Mr. Sullivan. Well, he could have been. I didn't know. 

Mr. Halley. Do you know a man named John Eush ? 

Mr. Sullivan. I know John Rush. 

Mr. Halley. Did you ever talk to John Rush about Crosby ? 

Mr. Sullivan. I could have. I don't remember it definitely. 

Mr. Halley. Will you search your memory and state to the best 
of your recollection whether you talked to John Rush about Crosby ? 

Mr. Sullivan. It possibly could have been. As I say I don't re- 
member any details. If you would read the details you have there 
maybe I could tell you. 

Mr. Halley. You know you did, don't you? 

Mr. Sullivan. I talked to John Rush. 

Mr. Halley. About Crosby. 

Mr. Sullivan. I don't know as I said. 

Mr. Halley. You don't know you didn't ? 

Mr. Sullivan. I don't know whether I did or not. I don't 
remember. 

Mr. Halley. Is that the best answer you can give ? 

Mr. Hunt. Pie has given his answer. 

Mr. Halley. Please let the witness answer. 

Mr, Hunt. I don't think he has a right to grill the witness time 
after time on the same proposition. 



ORGANIZED CraME IN INTERSTAT'E COMMERCE 299 

The Chairman. Well, Mr. Hunt, I think Sheriff Sullivan is quite 
able to take care of himself in this colloquy between Mr. Ilalley and 
himself. 

Mr. Hallet. Isn't it a fact that you told Mr. Eush to get Crosby 
off your county and not to let him interfere with gambline; establish- 
ments in your county; that if they were to be raided and arrested 
you would make those raids and arrests from your own office^ 

Mr. Sullivan. I don't remember telling Mr. Rush that. 

Mr. Halley. Are you sure you didn't tell him that ? 

Mr. SuLLR^AN. I don't like anybody coming into my county and 
picking out ]>eople to be arrested or anything like that, but I don't 
remember telling Mr. Rush, or, in fact, I don't remember talking to 
Mr. Rush about Crosby. 

Mr. Halley. Are you able to say definitely that you never talked 
to Mr. Rush about Crosby ? 

INIr. Sullivan. It is possible that I could have. I don't remember 
the details of it, Mr. Halley. You*niight ask Mr. Rush. He might 
tell you. 

Mr. Halley. How about Bowers ; do you know Bowers ? 

Mr. SuLLRAN. I don't know Mr, Bowers. 

Mr. Halley. You have heard of him? 

Mr. Sullivan. Oh, yes. 

]Mr. Halley. Isn't it a fact that when Mr. Crosby returned to the 
Miami area after January he was with Mr. Bowers and they were 
working together ^ 

Mr. Sullivan. It could have been, but that is something I never 
knew of. 

Mr. Halley. When you say ''It could have been," you mean some- 
body told you about it ? 

Mr. Sullivan. I say it could have been. Nobody told me about it 
anyway. I say it could have been because I don't know one way or 
another. The only time I saw Mr. Crosby when he was here in our 
town is when he came to my office and maybe we would go and eat occa- 
sionally; that is all. 

Mr. Halley. Did you ever mention to anybody whatsoever that you 
didn't want Crosby interfering with law enforcement in Dade County? 

Mr. Sullivan. Well, I don't know that I did. However, there is a 
possibility, because I like to run my own office. I was elected by the 
people of Dade County to run my own office ; and, regardless who it is, 
if they come in there to help me I am going to help them, but I don't 
remember ever making the remark of that kind. 

Mr. Halley. Wlien Crosby first came to your office he had a map 
with him ; did he not ? 

Mr. Sullivan. I never saw it. 

Mr. Halley. Didn't he show you a map ? 

Mr. Sullivan. He showed a letter from the Governor. 

Mr. Halley. Did he show you a map, too ? 

Mr. Sltllivan. I never saw the map. 

Mr. Halley. The locations he went to were S. & G. Syndicate loca- 
tions ; were they not ? 

Mr. Sullivan. That I can't tell you, because I don't know. 

Mr. Halley. Did he ever complain to you about the fact that on 
two occasions when he and Burk arrived at the scene of the place they 
were going to raid, either immediately or shortly afterward, the 



300 ORGANIZED CRIME IN INTERSTATE COMMERCE 

attorney for the S. & G. Syndicate, Ben Colien arrived on the scene ? 

Mr. Sullivan. I heard testimony to that effect here yesterday. 

Mr. Halley. You never heard tliat before ? 

Mr. Sullivan. I heard it at the time the arrests were made; yes. 

Mr. Halley. Did you ever make any attempt to find out how Mr. 
Ben Cohen was able to get information so soon ? 

Mr. Sullivan. Well, I don't know. I believe Burk said that they 
were called? 

Mr. Halley. That who was called ? 

Mr. Sullivan. That Mr. Cohen was called. 

Mr. Halley. By whom? 

Mr. Sullivan. I suppose one of the people there in the apartments. 

Mr. Halley. Did you ever investigate how this happened? 

Mr. Sullivan. The arrests on these things are made and the men 
are brought into our office. As I said, I am upstairs part of the time 
and part of the time downstairs. This county is about 65 miles long 
and about 40 miles wide, and I have many things to do, outside of 
gambling only, in our county. We have other laws that are violated 
and that we have to work on, which we try to do. I have a criminal- 
investigating department upstairs. I know that I use my full in- 
vestigating department. 

Mr. Halley. Getting back to the question, did you ever investigate 
how the attorney for the S. & G. Syndicate was able to get to the 
scene of the arrests so soon so that he was there almost as fast as 
your people on the scene? 

Mr. Sullivan. Well, I wouldn't know that unless whoever w^as ar- 
rested, which is customary, wiioever is arrested, call their attorney 
right immediately and they also call whoever is their bondsman to 
meet them, and their bondsman meets them upstairs on the nineteenth 
floor when they are brought up. 

Mr. Halley. There was no testimony that the attorney was called 
by the person arrested. The testimony was that Mr. Cohen in one 
case walked in almost immediately, and in the other case was there to 
greet them. 

Mr. Sullivan. That could be. 

Mr. Halley. Would that be investigated if it came to your 
attention? 

Mr. Sullivan. It could be, but 

Mr. Halley. Was it ? 

Mr. Sullivan. At the present time I don't believe that it was, or, 
rather, I don't see anything there was pertaining to my department 
to investigate the thing. The arrest was made or an attempt to arrest 
was made. 

Mr. Halley. For 1 minute, to get back to Mr. Fulford; do you 
r?'member whether he resigned or was fired? 

Mr. Sullivan. Well, I— 

Mr. Halley. Do you recall the testimony now ? Mr. Fulford said 
that as Goldman walked in he was fired, and then Mr, Fulford 
testified he resigned. 

Mr. Sullivan. That is what happened. He said. "Sheriff, what he 
had done I done, and I will resign, too." 

Mr. Halley. Goldman, you told the chairman, was not the man who 
was running for office. 

Mr. Sullivan. That is true. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 301 

Mr. Hali.ey. Isn't it a fact that at least three men in your office 
•who were also running for constable were never fired? 

Mr. Sullivan. That is true. 

Mr. Halley. Now, Sheriff Sullivan, when did you become sheriff? 

Mr. Sullivan. On January 2. 1945. 

Mr. Halley. What was your job before 1945? 

IVIr. Sullivan. I was a police officer. 

Mr. Halley. When did vou become a police officer? 

Mr. Sullivan. Well, in'l9;J3; the latter part, I believe, of 1933. 

Mr. Haixey. On what police force were you? 

Mr. Sullivan. Miami, Fla. 

Mr. Halley. The Miami police force? 

Mr. Sullivan. Yes. 

Mr. Halley. And you were there continuously from 1933 to 1945? 

Mr. Sullivan. I was there through January the 1st of 1944. 

Mr. Halley. AVhat did you do from January 1, 1944, to January 
1,1952? 

Mr. Sullivan. Well, I run for office until I was elected on May 
23, in 1944, and then after I was elected to office I visited some of 
the different sheriff's departments in the State of Florida. They was 
going to have a school here in the State of Florida for all the newly 
elected sheriffs, to which I was going to go. I was going to attend, 
I mean. I wanted to attend the Federal Bureau School in Washing- 
ton if I could, but I couldn't make the arrangements because they 
were already filled. 

I didn't go to the school in Florida because they told me I was 
the only man who was interested in going to the Florida school for 
the newly elected sheriffs; so I came back to Miami and went to the 
University of Miami. 

Mr. Halley. For how long ? 

Mr. Sullivan. About 4 months, I believe. 

Mr. Halley. What did you study there ? 

Mr. Sullivan. I studied criminal procedure. State government, 
personel management, and the law of torts. 

Mr. Halley. What was vour position on the police force until 
January 1, 1944? 

Mr. Sullivan. I was a traffic officer. 

Mr. Halley. A traffic officer? 

Mr. Sullivan. Well, I was a traffic officer for a good many years; 
for 7 years, I believe. 

Mr. Halley. What 7 years was that ? 

Mr. Sullivan. That was the last 7 years I was on the force. 

Mr. Halley. What did you do 

Mr. Sullivan. Previous to that, I w^as on the radio-car detail, 
working in the colored section of Miami and in the downtown area of 
Miami. 

Mr. Halley. While you were on the police force did you have any 
other business ? 

Mr. Sullivan. Well, I didn't have any other business. I would 
like to show you some things that I did while I was on the police force 
in the city of Miami. 

Do you have those things, Mr. Hunt ? 

Mr. Halley. Just a moment, please. You will have a full oppor- 
tunity, but now I am referring to other means of earning income other 
than your salary on the police force. 



302 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Hunt. That is what he is trying to tell you. 

Mr. Halley. Is that what you are trying to get at '? 

Mr. Sullivan. Yes. 

Mr. Halley. If so, it is relevant and you can give it to us now. 

Mr. Sullivan. I worked at the bus station every other month at the 
Miami Transit Co. 

Mr. Halley. Yes ? 

Mr. Sullivan. And I believe that we made, I think, around $55 a 
month extra at that, and I think I made about $8 or $10 every month 
turning lights off. Then I was buying and selling automobiles or 
radios or whatever happened to come along that I could buy and make 
a few dollars on. 

Mr. Halley. Did you 

Mr. Sullivan. I bought quite a few automobiles. 

Mr. Halley. I am sorry. 

Mr. Sullivan. I bought quite a few automobiles while I was on the 
police force. 

Mr. Halley. You mean during the war ? 

Mr. Sullivan. While I was on the police force. 

Mr. Halley. Was that after 1942 and before 1944 that you are re- 
ferring to that you were buying automobiles ? 

Mr. Sullivan. No. Most of the time I was on the police force. 

Mr. Halley. As a traffic officer, those were things you would get to 
know about? 

Mr. Sullivan. Well, people on the corner I would get to know and 
get to know about it. I would help people in many ways, and people 
would stop by and help me. 

Mr. Halley. Go ahead. You have some pictures you want to show 
us? 

Mr. Sullivan. Yes, sir. Here is one in 1937 while I was on the 
police force that I built [handling photograph to Mr. Halley] . I built 
it out at 1803 Northwest Sixth Street. 

Mr. Halley. Did you build it for yourself ? 

Mr. Sullivan. Yes, indeed. It was a two-story duplex. 

Mr. Halley. And you sold it in 1939 ? 

Mr. Sullivan. Yes ; I did. 

Mr. Halley. And did you make a profit on that transaction? 

Mr. Sullivan. Yes ; I did. 

Mr. Halley. How much ? 

Mr. Sullivan. Well. I think that I made around — I am not sure — ■ 
possibly $1,700, maybe $1,900. I am not sure. However, I went in 
there owing quite a bit of money on my property, and when I came out 
I didn't owe anything outside of my payments that I was making 
monthly and I had my property looking very beautiful. 

Mr. Halley. It looks very nice. Now, after 1939 did you have any 
other opportunities to earn money other than your salary? 

The Chairman. We will mark this exhibit No. 151 for the record. 
(See appendix, p. 782.) 

Mr. Sullivan. In 1939 I bought a lot at 2321 Southwest Fourth 
Street and I built a house there — a three-bedroom and two-bath house. 

Mr. Halley. How much did the lot cost ? 

Mr. Sullivan. The lot I believe cost either $450 or $500, something 
like that. I built a very pretty three-bedroom two-batli house. Here 
is the house [handing picture to Mr. Halley]. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 303 

The Chairman. AVe will mark that photograph exhibit No. 152 for 
the record and file it. ( See aj^pendix, p. 782. ) 

Mr. Sullivan. I sold that house after about a year or so, maybe a 
little longer, but in the meantime I had bought the lot next door to it 
iiud all that time I woi-ked on the corner. I built those houses while 
I was — while I had m^' vacation. 

Mr. Halley. Did vou build them all by yourself or did you have 
help? 

Mr. Sullivan. I had help. I had fellows helping me. I built the 
houses, but I had people to help me. 

Mr. Halley. You hired people to help you ? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. How many houses did you build altogether? 

Mr. Sullivan. Seven, I believe. 

Mr. Haliey. Between what years? 

Mr. Sullivan. Well, now, wait a minute. Five while I was on the 
police force and I bought two and remodeled them. 

Mr. Halley. While you were on the police force? 

Mr. Sullivan. Here is the one at 2327 Southwest Fourth Street 
[handing photograph to Mr. Halley]. 

The Chairman. We w'ill mark that photogi-aph exhibit No. 153 for 
the record and file it. See appendix, p. 783.) 

Mr. Halley. I would like to know in what years you had these real- 
estate transactions. 

Mr. Sullivan. I built that house, I believe, in 1940, I think. 

Mr. Haixey. On the back it says, "Built in 1940 and sold in 1941." 

Mr. Sullivan. Yes. 

Mr. Halley. Was the first one in 1939? 

Mr. Sullivan. 1937. 

Mr. Halley\ 1937? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. And there were altogether seven — five of wdiich you 
built and two of which you remodeled? 

]Mr. Sullivan. That is right. 

Mr. Halley. Now, how many did vou build before 1939 and sell 
before 1939? 

Mr. Sullivan. One. 

Mr. Halley. One? 

Mr. Sullivan. Yes. 

Mr. Halley. And six after 1939? 

Mr. SuLi.iVAN. Well, six or seven. 

Mr. Halley. Can we just have the dates when you built and sold 
each one? 

Mr. Sullivan. Well, the dates are on the backs of these pictures. 
If the dates are on the back, I will be happy to give them to you. 

Mr. Halley'. Would you, please? 

Mr. Sullivan. Well, I built in 1937 and sold in 1939 the house at 
1803 Northwest Sixth Street. Then in 1939 I built and sold in 1940 
the house at 2321 Southwest Fourth Street. Then I bought the lot in 
1939. built the house in 1940, and sold it in 1941, the house at 2327 
Southwest Fourth Street. Then in 1941 I built the house at 2370 
Southwest Fourth Street and sold it in 1942 Thanding photograph to 
Mr. Halley]. 



304 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. We will mark it "Exhibit No. 154" for the record 
and file it. (See appendix, p. 783.) 

Mr. Sullivan. However, in between time between the sale of the 
second house there at 2321 Southwest Fourth Street and the buildin<r 
of the one at 2327 Southwest Fourth Street I leased the apartment 
down in the corner 2398 Southwest Fourth Street, the duplex there 
and I sublet half of it. 

Mr. Halley. Did you derive an income out of it ? 

Mr. Sullivan. While I was building my home at 2327 I lived there 
and then when I finished the 2327 house I sublet for the winter the 
place, the duplex. 

Mr. Halley. You told us about three houses. 

Mr. Sullivan. Yes, sir. 

Mr. Halley. Will you go on ? 

Mr. Sullivan. The next one that I built after that was this two- 
story house at 2370 Southwest Fourth Street [handing photograph to 
the chairman]. It was built in 1941 and it was sold in the latter part 
of 1942. 

The Chairman. That will be exhibit No. 154 [repeating]. 

Mr. Sullivan. This one here was bought in 1942 and was sold in 
1943 [handing photograph to the chairman]. 

Mr. Hunt. What number is that? 

Mr. Sullivan. That is 2338 Southwest Fifth Street. 

The Chairman. It will be marked "Exhibit No. 155." (See appen- 
dix, p. 784.) 

Mr. Sullivan. Here is a place that was built in 1941 at 2620 South- 
west Ninth Street and sold in 1942 [handing photograph to the chair- 
man]. 

The Chairman. That will be exhibit No. 156. 

Mr. Sullivan. Here is a place at 2332 Southwest Fifth Street that 
I built in 1943 and sold in 1943 [handing pliotograph to the chairman]. 

The Chairman. That will be exhibit No. 157. 

Mr. Sullivan. Here is one that I bought in 1943 and sold in 1946 at 
2236 and 2238 Southwest First Street. A room was added in 1943. It 
is a duplex. 

The Chairman. That will be exhibit No. 158. 

Mr. Sullivan. Here is a lot that was brought in 1946, built on in 
1947 and sold in 1948. That is 2240 and 2242 Southwest First Street 
[handing photograph to the chairman]. 

The Chairman. That will be exhibit No. 159 for the record. 

Mr. Sullivan. Here is a place at 261 Southwest Thirtieth Koad that 
I bought in 1947 [handling photograph to the chairman]. 

The Chairman. That will be exhibit No. 160. 

Mr. Sullivan. Here is a house at 2485 Southwest Fourth Street that 
was built in 1949 and 1950, finished along February, something like 
that [handing photograph to the chairman]. 

The Chairman. That will be exhibit No. 161. (The above exhibits, 
Nos. 156-161, appear in the appendix, pp. 784-787.) 

Mr. Halley. You still own two? 

Mr. Sullivan. I still own 2485 Southwest Fourth Street. 

Mr. Halley. Now, in 1942 did you borrow some money from the 
First Federal Savings Bank ? 



ORGANIZED CRIME EST INTERSTATE COMMERCE 305 

Mr. Sullivan, In 1942 I imagine that I did. I built a liouse at 
2321 and 2327 Southwest Fourth Street and I got a loan on those 
houses. 

Mr. Halley. Do you remember stating your total assets when you 
applied for that loan ? 

Mr. Sullivan. Well, I didn't ever 

Mr. HALI.EY. This was in 1942. 

Mr. Sullivan (continuing). State my total assets because 

Mr, Hallet. When you apply for a loan you try to prepare a 
substantial statement, don't you? 

Mr. Sullivan. When you apply for a loan you have to have enough 
as they say at the First Federal to "span the gap" because I never did 
like to put down what money I had, so I didn't do it. 

Mr. Hallev. You mean, when you told them how much money you 
were worth you were really being very modest about it? 

Mr. Sullivan. Well, I just put down enough to get my loan. 

Mr. Halley What did you tell them your assets were to get this loan 
in 1942? 

Mr. Sullivan. I don't remember which loan it happened to be. 
However 

Mr. Halijiy. Was it $2,500? 

]Nfr. Sullivan. It could have been. Maybe I was borrowing that 
much. 

Mr. Halj,ey. In any event it could be that you said in 1942 that 
vour total assets were $2,500? 
"' Mr. Sullivan. No. In 1942? 

Mr. Halley. Yes. 

Mr. SuLiiivAN. No, it couldn't have been. 

Mr. Halley. It couldn't have been? 

Mr. Sullivan. No, sir. 

Mr. Halley. Well, what did you say they were ? 

Mr. Sui.ltvan. That I don't definitely remember, but it couldn't 
have been that. 

Mr. Halijiy. If the loan application states that, would the applica- 
tion be wrong ? 

Mr. SLTLiiivAN. It wouldn't necessarily be so. 

Mr. Halley. But it could be on the application? 

Mr. Sullivan. It possibly could; yes. It could be on the applica- 
tion; yes. 

Mr. Halley. In 1943 you sold two of those houses, did you not? 
You stated a few moments ago that you did. 

Mr. Sullivan. I may have. 

Mr. Halley. You so stated about 5 minutes ago. 

Mr. Sullivan. If that is what it says on the back there that is what 
happened. I don't know, 

Mr. Halley, It says on the back of the picture that you sold them 
in 1943. Do you have any records pertaining to these houses, financial 
records ? 

Mr. SuLUVAN. I guess my tax man has them. 

Mr. Halley. Is he here ? 

Mr. Sullivan. Yes, he is here. 

Mr. Halij5Y. Maybe he can produce them ? 



306 ORGANIZED CRIME IN INTERSTATE COMMERCE 

TESTIMONY OF DAVID W. HALL, ACCOUNTANT 

The Chairman. Mr. Hall, you may be called on to testify, do you 
solemnly swear that the testimony you will give this committee will be 
the whole truth and nothing but'the truth, so help you God? 

Mr. Hall. I do. 

The CriATRMAN. Just pull up a chair alongside Sheriff Sullivan. 

Mr. H ALLEY. What is your full name? 

Mr. Hall. David W. Hall, certified public accountant. 

Mr. Halley. And you have here certain records of Sheriff James 
Sullivan ? 

Mr. Hall. I have copies of his income-tax returns. 

Mr. Halley. Do you have any other documents ? 

Mr. Hall. Yes, I have a few closing statements on sales, not all of 
them. 

Mr. Halley. Do you have any statement showing profit and loss on 
sales ? 

Mr. Hall. Yes, in the income-tax returns. 

Mr. Halley. Do they show on the tax returns — income-tax returns? 

Mr. Hall. Yes. 

Mr. Halley. Would you make available to the committee the in- 
come-tax returns which you have here ? 

Mr. Hall. I have here copies of income-tax returns from 1940 
through 1949. 

Mr. Halley. Would you hand them over here ? 

The Chairman. Let them be made exhibit No. 162. (Later returned 
to witness.) 

Mr. Hunt. Will they be returned ? 

The Chairman. They will be. 

Mr. Halley. Now, do you have any records showing the profit and 
loss on two buildings which were sold in 1943 ? 

Mr. Hall. If I could see the returns I could tell. 

Mr. Halley. For 1943? 

Mr. Hall. Yes. 

Mr. Halley. Here you are [hands documents to the witness]. Do 
you want the amended returns? 

Mr. Hall. Yes, sir. There were two sales in the year 1943. Lot 5, 
block 6, Fairmont, purchased December 6, 1942, at a cost of $2,750. 
Subsequent to acquisition, there were improvements made to the 
property totaling $1,959. 

On March 11, 1943, the property was sold for $6,500, showing a gain 
of $1,791. 

Mr. Halley. What was the date of sale ? 

Mr. Hall. March 11, 1943. 

Mr. Halley. What was the name of the lot? 

Mr. Hall. Lot 4, block 6, Fairmont Park was bought in May of 
1943, and it cost $4,500 and the selling price was $6,950, after sub- 
tracting the cost of sales and so forth. The gain on that sale was 
$2,075.50. 

Mr. Halley. May I see the retuin for 1943? Now you have just 
handed me an amended return for 1943. Do you liave the original 
return for 1943 ? 

Mr. Hall. I have it here. 

Mr. HalIvEY. When was the amended return filed? 



ORGANIZED ORIME IN INTERSTATE COMMERCE 307 

Mr. Hall. May I see it a^ain? [File handed to Mr. Hall.] I 
don't have the date of that, but it was recently. 

Mr. Halley. In 1950 ? 

Mr. Hall. Yes. 

Mr. Halley. Now the original return was filed in 1944 for the 
calendar year of 1943 ; is that right? 

Mr. Hall. Yes, sir. 

Mr. Halley. On the original return, can you state what the net 
income was for Sheriff Sullivan, for the year 1943, was at this 
time? 

Mr. Hall. By net income, do you mean 

Mr. Halley. Net taxable income. 

Mr. Hall. After tax is off ? 

Mr. Halley. No, before taking off the taxes, state your deductions. 

Mr. Hall. $2,573. 

Mr. Halley. Well, that doesn't reflect profit on the two sales of 
real estate? 

Mr. Hall. No; that is the reason an amended return was filed this 
year. 

Mr. Halley. What are the circumstances under which an amended 
return was filed this year? 

The Chairman. Maybe Sheriff Sullivan can tell that, gentlemen. 

Mr. HuxT. Mr. Hall can tell you. 

The Chairman. Well, let's have the sheriff tell. The question is. 
Sheriff, you filed a return in 1943 and you filed one in 1950 and you 
have something else? 

Mr. Sullivan. Well, I don't know. They stated one year that I 
didn't file a return. 

Mr. Halley. You did file one in 1943, didn't you ? 

Mr. Sullivan. If you have it I did. I file one every year. 

Mr. Halley. And you filed a return showing an income of $2,387.75 ; 
isn't that right ? 

Mr. Sullivan. What do you mean? 

Mr. Halley. Now, in 1950 you corrected this to show $7,300.53. 

Mr. Sullivan. Whatever is there is the amount, the amended 
income. 

Mr. Halley. Would you answer that question as to the circum- 
stances under which the income was amended ? 

The Chairman. Sheriff, you tell us about it here. Here is the 1943 
one, and here is the amended one. 

(Chairman hands Mr. Sullivan documents.) 

Mr. Halley. Don't any of you know the facts? This has been very 
recent. 

Mr. Hunt. His auditor can tell you, if you want him to tell you. 

Mr. Sullivan. I don't know anything about these taxes — paying 
these taxes. I guess it is about 99 percent of us who don't know. I 
paid taxes for several years, and apparently my taxes were not being 
paid at all, or sent to the right places; and I have had a tremendous 
amount of checking on my income taxes for the past year or maybe 
longer. They have been calling me from all over Dade County about 
my income tax. Thev say, ''What is the matter, there has been a man 
here checking on you ?" 



308 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. Here I have been looking at your 1943 income-tax 
report. It looks like it is very skillfully made out by an auditor. Did 
somebody make it out for you ? 

Mr, Sullivan. Mr. Hardin McQueen. 

The Chairman. Does that represent the information vou gave him, 
I take it, Sheriff? 

Mr. Sullivan. Well, in each one of these cases that were filed, there 
was a total of yellow sheets that were filed with each one of these forms 
that are here, with my total income on it. 

The Chairman. These yellow sheets are not here. Sheriff, the point 
is 

Mr. Sullivan. It is a worksheet of our taxes and how they are 
made up. 

The Chairman. The point is, you had this 1943 income-tax report 
made out by an auditor. The tax here was apparently $72.66. Now 
all of these forms back here, did you or did you not make this profit on 
the sale of these houses in 1943 ? 

Mr. Sullivan. Yes. I made those sales on those houses at that time. 

The Chairman. Why didn't you report it? You have taxes here 
deducted. 

Mr. Sullivan. It was put on my income taxes. Whatever I made in 
1 943 there, was put on my income taxes. 

The Chairman. Do you mean on your original one ? 

Mr. Sullivan. Yes, sir. 

The Chairman. Then you say that this is not correct, your original 
1943 return ? 

Mr. Sullivan. Whatever the return was when I built my houses. At 
the end of the year I went to the auditor, McQueen, and I had my taxes 
straightened out with him. 

The Chairman. Well, the place here for income is, Miami Transit 
Co., Miami, Fla., $337.50 ; city of Miami, $2,335.50. Is that all. That 
is all the income you have listed in your original for 1943. Where are 
these houses. Where is the profit from these houses ? 

Mr. Sullivan. The one in 1939 and 1940 and 1941 ? 

The Chairman. No, the ones you sold in 1943 ? 

Mr. Sullivan. Senator, let me say this: On this income tax here, 
there was a yellow sheet exactly like this one here [indicating] which 
was a work sheet. That work sheet was attached to each one of my 
income leports, because my income reports were put on there — on the 
yellow sheet — ^and I left my money that was supposed to be sent, the 
money that was supposed to be the amount of profit I had made off my 
own home — on those yellow papers. And when I learned of this in- 
vestigation of my income tax, well I go and ask for the yellow sheets 
of these files that stay here. I didn't keep them myself, they are kept 
in the office, and the yellow work sheets were not there. 

The Chairman. So they were not available, they didn't show up, 
tliey were nowhere around ? 

Mr. Sullivan. No. 

The Chairman. But you know for sure. Sheriff, that you made some 
])roHt on those houses? 

]Mr. Sullivan. AVell I made some. I paid on those houses. 

The Chairman. But it is not on your account? 

Mr. Sullivan, That is true. 

The Chairman. How did you pay ? 



ORGANIZED CIRIME IN INTERSTATE COMMERCE 309 

]\Ir. Sullivan. Well, you have the records. 

The Chaikman. You decided in 1950 to pay this ; is that it ? 

Mr. Sullivan. No. 

The Chairman. How are you going to list tliat additional amount 



now 



Mr. Suixivan. Just a minute, I can show you. Will you explain 
how this is coming about, now? 

Mr. Hall. If I may have that record? 

Mr. Sullivan. These payments were not made by McQueen. There 
was quite a few irregularities in there that I didn't know about until 
I started checking them. In fact I w^anted to take your time here for 
a few minutes just to show you about 

The Chairman. Who is this McQueen you are talking about ? 

Mr. Sullivan. Well, he was the fellow that was making my income- 
tax report at the end of each year, and I was paying quarterly each 
year, and I was paying all my income. I mean all the payments that 
I was due to pay, and usually I would go over there and leave the 
money there with him and he would pay it. Sometimes I paid it 
myself. 

Mr. Halley. Is Mr. McQueen alive ? 

Mr. Suixivan. Yes, sir ; he is. 

Mr. Halley. And is he is Miami ? 

Mr. Suixivan. Well, he was about a week or so ago — 10 days or so 
ago. 

Mr. Halley. Is it your statement on the 1943 return that the chair- 
man was asking about; that you filed an additional yellow sheet which 
did show^ the income from the real-estate transactions? 

Mr. Sullivan. My income taxes were made up from a yellow work- 
slieet which was attached to the sheet of which I paid on, and the 
payments were irregular. In fact I have a check here at the present 
time of $1,800 that states that his office girl forgot somehow or other. 
He was sick and they must have not sent it, sent the money. I have 
a check here. 

Here is a letter to Mr. Hunt, my attorney : 

Dear Mr. Hunt : In regard to .Jimmy Sullivan, please find enclosed my personal 
clieck, No. 1039, dated June 12. 1950, payable to James A. Sullivan for the sum 
of .$1,826.22, to cover my statement of June 1, 1950. In view of my going to the 
hospital for an operation, and no doubt will be confined for some time, I could 
not wait for your reply to my letter and statement of June 3. Therefore, I am 
mailing you this check to prevent any further delay. With kindest regards. 
Yours truly, 

Hardin McQueen. 

INIr. Halley. Now Sheriff Sullivan, have you finished reading your 
letter? 

^Nlr. Sullivan. Yes, sir. 

]Mr. Halley. Is it then, your testimony, for this need for a cor- 
rected return in 1943 ; that this was due to some sort of mistake? 

Mr. Sullivan. Well, I think it was. I was perfectly honest in 
making my report out and I stated everything that I had made — that 
I had sold, because it w^as on record in the courthouse. 

Mr. Halley. Would you say that you simply made a mistake in 
the years 1944, 1945, 1946, 1947."and 1948 ? 

Mr. Sullivan. We have it in the record to show what happened. 
We have many records to show of actually what happened. 



310 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Halley. Now let's take 1944. There you find a return for 
$5,564.77 ; is that right ? 

Mr. Sullivan. Well 

Mr. Halley. Do you have the original returns? 

Mr. Hall. 1944? 

Mr. Halley. The original returns for 1944 ? 

Mr. Hunt. The Bureau has the original. Don't you have your 
copy ? 

Mr. Halley. Do you have a copy ? 

Mr. Hall. In 1944 Form W-2 was filed. 

Mr. Halley. And in 1944 who made the statement of income? I 
don't believe you made any statement of income at all but simply paid 
a tax ; is that correct ? 1 mean for the year 1944 ? 

Mr, Hall. This was done at the end of the year. 

The Chairman. Here it is, Mr. Hall. Just tell what that is. 

Mr. Hall. This sheet of paper I have here is an original Form 1040 
which was found in the files of Hardin McQueen out on Southwest 
Eighth Street. He is the man who made up Mr. Sullivan's income-tax 
returns. The W-:2 was turned over to the field deputy as follows: 
$207.75, taxes withheld, $10.40. That Form W-2 is the employer's 
statement that is given to employees showing the amount of income 
tax withheld. The taxpayer, if he wishes, signs the original Form 
W-2 and mails it in, which does away with the necessity of filling 
out a long form of income-tax return. 

Mr. Halley. So in 1944 he just didn't file a long form tax return? 

]VIr. Hall. Well, the W-2 went to Mv. McQueen. Whether Mr. 
McQueen sent the form in or did not, I don't know, 

Mr. Halley. Well, on the long form, if the amount is over $5,000 you 
can't use the W-2. You can't use the W-2 if a man's income is over 
$5,000 ; isn't that correct ? 

Mr. Hall. I believe that was correct in 1944. 

Mr. Halley. And Mr. McQueen is an auditor? 

Mr, Hall, Yes. He was not certified. If }' on look at his letterhead 
you will find out w4iat his ca])abilities are. He is an examiner of 
questioned documents; a handwriting expert; and a counselor on 
Federal tax. 

]Mr. Halley. Didn't you finally in 1950 file an amended long form 
return for the year 1944? 

Mr. Sullivan. Yes, I believe I did. 

Mr, Hall, Yes, 1944, In 1944 an amended form was filed, 

Mr, Halley. Now Sheriff Sullivan, do you think if you learned that 
your own income-tax return was amended in 1944, that you could 
state the sources of your account, or your income in 1944, as shown on 
that return ? 

The Chairman. Before he does that I want to see this short form 
that was filed. 

Mr. Hall. We don't have it ; the Government has it. 

The Chairman. According to this, the only tax paid was $10.40? 

Ml'. Si LLiVAN. That was tax withheld on that salary, and on tho 
original return if it was sent in. The $10,40 was taken credit for by me. 

The Chairman, His question was, what was the source of income 
in 1944 as you finally listed it? 

Mr. Sui^MVAN. Well, we liav(> a lettei (o sliow here. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 311 

The Chairman. Well, Sheriff, you tell us. You tell us what the 
source was. 

Mr. Sullivan. He will have to tell me, I don't know^ anything about 
these income taxes. 

I Mr. Halley. Can you read? It is right on the return. You read 
all morning. Just read it off the return, please. 

Mr. Sullivan. All right. 

Your exemption : Your name is James A Sullivan, and your wife is Ethel 
Sullivan. Your daujihters are Dorothy May 

Mr. Halley. Go ahead. 

Mr. Sullivan. "The city of Miami, Miami, Fla. ; amount, $207.75." 

Mv. Halley. That is income ^ 

Mr. Sullivan. The amount; yes, sir. 

Mr. Halley. Tlie total income from the city? 

Mr. Sullivan (reading) : 

Enter total income here : $207.75. Enter here the total amount of your divi- 
dends and interest, including interest from Government obligations, unless wholly 
exempt from taxation, $77.02. If you received any other income, give details 
on page 2 and enter the total here, $5,780. Add amounts in items 2, 3, and 4, 
and enter total here, $6,064.77. If item 5 includes incomes of both husband 
and wife, show husband's income here, $5,674.77. Wife's income here, $390. 
Husband and wife — if husband and wife file separate returns, and one itemizes 
deduction, the other must also itemize deductions. 6. Enter for your tax from 
table on page 4, or from line 15, page 3. 

I Mr. Halley. Now Mr. Sullivan, the question related to those parts 
lof the tax as related to your source of income. I think it would now 
Ibe ap])ropriate to turn to page 2 and state the source of additional 
income that you referred to a few minutes ago ? 
j Mr. Sullivan. That is the year that I ran for sheriff in 1944. 

Political contributions, not expended, is $5,000. 
\ Total income from above sources, $5,780. 

Mr. Halley. Can you give any further explanation of that item, 
"Political contributions, not expended"? 

Mr. Sullivan. Well, this was the year 1944 that I was elected, the 
year that I ran for sheriff, and I left the corner, and wdien the race 
was over I had money left over. 

Mr. Halley. And you happened to have $5,000 left over ? 

Mr. Sullivan. Yes. It totaled up that, or a little bit better. 

Mr. Halley. So you kept that? 

Mr. Sullivan. I kept it ; yes, 

Mr. Halley. As income ? 

Mr. Sullivan. What was I to do wnth it ? 
; Mr. Halley. Did something similar to that happen in your 1948 
campaign, too? 

Mr. Sullivan. Yes ; it did. 

Mr. Halley. Will you state the facts with reference to 1948? 

Mr. Sullivan. Well, the reference to the fact — it is after the race 
was over that I had money left over — after the race was over. 

Mr. Halley. How much did you have left over in 1948 ? 

Mr. Sullivan. I had about, if I remember right — about the same 
amount as I had the first time. 

Mr. Halley. $5,000? 

Mr. Sullivan. Around $5,000 or $5,600. 

Mr. Halley. $5,000. And that was political contributions? 

68958 — 50 — pt. 1 21 



312 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Sullivan. Yes ; that was left over from my campaign. 

Mr. Hallet. Now what led you to declare those sums as income 
when y^ou filed these amended returns in 1950 ? 

Mr.'SuLLivAN. What led me to do it ? 

Mr. Hallet. Yes. 

Mr. Sullivan. AVell, I had people, friends of mine, all over Dade 
County telling me that the income-tax man had been there checking 
on my income. I had a man come and ask me about my income tax, 
and says they were asking him about it. I says, "Well, I don't know. 
I have took care of all my income, every bit of it.'' He asked me had 
I took care of it and I told him. He says, "Those records" — he came 
to my office and told me this fii'st. I was downstairs in the courthouse 
and pulled out these pages and he told me he was from the Tax 
Department of the Internal Revenue, and he says, "I would like to 
question you some about your income.'' "Well," I says, "It is all 
right." And he says — -he sat down and talked with me for quite 
a while in my office. Then he came back and told me at a later date 
that if I didn't file any returns for 19— from 1944; that I didn't file 
any from 1944. Well I told him I filed income for every year. I 
says, "We made it out on the yellow sheet and the yellow sheet is 
right here." The yellow sheet was right there every time that we 
made our income out. "I have paid on it," I says. 

Mr. Hallet. Well, while we have the interruption may I have the 
original returns. The only one I have here is 1943. I would like 
copies of the returns filed from 1943 to 1948. 

Are you ready? 

Mr. SuLi^ivAN. Yes, sir. I wrote a letter here, the first time I knew 
that something was wrong with my income-tax returns. The letter 
is dated November 30, 1949, to the collector of internal revenue, Jack- 
sonville, Fla. : 

Gentlemen : I find the accountant who made up my income-tax reports for 
the years 1945, 1946, 1947, and 1948 did not keep an exact and detailed copy of 
the reports sent to you. Would it be possible for yovi to obtain for me photostatic 
copies of these four income-tax reports and let me have them? According to my 
records I received $91. HO refund on my 194.1 income-tax report, of which I paid to 
the Government $1,100. I paid $1,200 on my 1940 report, and should have received 
a refund of $249.18 on this, but my records do not indicate that such a refund 
was ever received. 

I paid on the 1947 income-tax report, $4,894.18, and should have received a 
refund of $726.72, but am unable to locate any such refunds as being received by 
me. I paid $1,400 on my 1948 income-tax report and have not received any 
refund on this at all. I would certainly greatly appreciate your assistance in 
furnishing me with these photostatic copies of the above, so that I may have my 
records clearly available. Thanking you, I am. 

Very truly yours, 

James A. Sullivan. 
Or James Alexander Sullivan. 

Mr. Haij.et. Mr. Sullivan, do you have anything else that you 
want to submit? 

Mr. Sullivan. Yes, sir; a letter from the Treasury Dei^artment, Mr. 
Ilalh'y. 

Mr. James Sullivan, 

Box S0S8. 

Dkak Mr. Sullivan : This is in regards to 194.1, 1946, 1947, and 1948 returns. 
Receipt is acknowledged of your connnunication dated November :M). 1949, re- 
(piesting photostatic copies of 194.1, 1946, 1947, and 1948 returns. Inasmuch as 
the above-mentioned returns are not in this office, it will be necessary for this 



ORGANIZED CRIME IN INTERSTATE COMMERCE 313 

oflSce to requisition statements. However, upon receipt of tliese returns you will 
be furnished pliotostatic c(»pies as quickly as possible. If tliis office can be of 
further service to you. please advise. 

Yours very truly, ^ , 

John L. Falis. 

Mr. Halley. Here we have a copy of your 1948 return, don't we? I 
show you a copy of your 11)48 return on the bottom of which is marked 
in ink, signed, "JAS."' Tliere are some otlier names on it, indicating 
that it is a copy of returns filed for 1948. Will you look at it and say 
if it is the copy? 

I don't understand. You were asking the Bureau of Internal Reve- 
nue for a photostatic cojjy — why ? You had a copy. 

Mr. Sullivan. My returns were not the same as the returns that 
were here. 

]Mr. Halley. They were not ? 

Mr. Sullivan. No, sir. 

Mr. Halley. What returns were here, and what returns did you 
make? 

Mr. Si'LLivAN. Well, there was much money that was paid that 
didn't reach the Internal Revenue Department. 

Mr. Halley. Isn't this the copy that you have had in the files right 
along? That is, the thing right in front of you, right on top? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. And it shows the total income of 1948, of how much 
you made '( It shows $10,T04.3?>, and you have amended it now show- 
ing a total income of $15,951.91, adding to it the $5,000 for campaign 
contributions and expenses. 

Now when you took office as sherijff in 1945, did you have any money 
in the bank? 

Mr. Si'LLiVAN. I don't know how much money I had in the bank 
because I didn't keep much money in the bank. 

Mr. Halley. Did you have $5,000 in the bank at that time? 

Mr. Sullivan. I don't remember what I had in the bank. 

Mr. Halley. January 1, 1945 ( 

Mr. Sullivan. I don't know. That is the year I left the police 
department. I don't know how much money I had in the bank. I had 
about $2,000—1 had $2,001.50. 

Mr. Halley. How^ much did you have in the bank at the end of 
1948? 

Mr. Sullivan. $34,283.60. 

Mr. Hallet. That was in one bank, but you had some money in 
another bank. 

Mr. Sullivan. I had in the Pan American Bank, $983.28, and I 
had in the Riverside Bank, $1,187.32. In the Miami Industrial Bank 
I had $424.64. I had in Treasury bonds, $1,068.75. 

Mr. Halley. You had some other property at the end of 1948, did 
you not, besides money in the bank? 

Mr. Sullivan. Yes. 

The Chairman. What is the total of money in the bank at the end 
of 1948 ? 

Mr. Hall. I can give you the figures. 

The Chairman. Read those figures once more. 

Mr. Hall. $34,283.60 in the First Federal Savings & Loan ; $424.64 
in the Miami Industrial Bank; $1,187.32 in the Riverside Bank; 



314 ORGAXIZED CRIME EST mTERSTATE COMMERCE 

$983.28 in the Pan American Bank ; in XDOstal savings certificates there 
were $201 ; United States Treasury bonds, $1,068.75. 

That is all of the cash items. 

Mr. Hallet. Wliat other assets were there at the end of 1948 ? 

Mr. Sullivan. A note receivable to George L. Tiny Parker for 
$1,000; accounts receivable, Ethel Balfe, $900; accounts receivable, 
Sam Wallace, $300; the Hungarian Culture Club, $500; automobile. 
Dodge sedan, $2,029, and another Dodge sedan, $1,629.79; a lot at 
174 Beacom Manor, Southwest Fourth Street, $1,520.85 ; lots at 172 
and 173 Beacom Manor, $3,013.95 ; lots 26, 27, 28, 29, and 40, Kenil- 
worth, vacant. Southwest First Street, $4,575.90; lot 24 of block 14, 
Brickell Estates, 261 Southwest Thirtieth Koad, $15,500; the Hen- 
dersonville, N. C, residence was $8,000. 

Mr. Halley. You bought that for cash, didn't you? 

Mr. Sullivan. Yes. 

Mr. Hallet. In what year ? 

Mr. Sullivan. 1947. 

Mr. Hallet. Is that place up in Hendersonville, N. C, in the same 
general area as the summer house that a former chief of police, Mr. 
Short, of Miami Beach, had his house in Hendersonville? 

Mr. Sullivan. I don't know. I do know Police Chief Short. I know 
him, but I didn't know him there. I never saw him up there. 

Mr. Hallet. You don't know that he also has a house in Hender- 
sonville ? 

Mr. Sullivan. My place was in Laurel Park, just outside of Hen- 
dersonville. 

Mr. Hallet. You don't know that he also had a house there ? 

Mr. Sullivan. No. 

Mr. Hallet. From whom did you buy your house ? 

Mr. Sullivan. From Ed Diehl in Homestead. 

Mr. Hallet. Homestead where ? 

Mr. Sullivan. Florida. 

Mr. Hallet. For $8,000 cash? 

Mr. Sullivan. That's right. 

Mr. Hallet. Did you withdraw the money for that from the bank ? 

Mr. Sullivan. Yes, I did. 

Mr. Hallet. Did you pay by check ? 

Mr. Sullivan. No ; I didn't get the check out of the bank; I got the 
cash. 

Mr. Hallet. You went to the bank and got $8,000 in cash out of it? 

Mr. Sullivan. They wrote tlic check for $8,000; I don't, know 
whether it was the check or the cash I paid ; I think it was cash. 

Mr. Hallet. What did you hand the man you bought the house 
from, check or cash ? 

Mr. Sullivan. I don't know whether it was check or cash ; it was 
o^ie or the other. "Wlien you get a check that is payable to you you 
have to get the check cashed and get another check. It is a savings 
account in the First Federal Bank here in Miami. 

Mr. Halley. You got a cashier's check ? 

Mr. Sullivan. Yes ; it is the same thing. 

Mr. Halley. Did you go to the bank and put $8,000 in it and then 
get a cashier's check? 

Mr. SiTLLivAN. No ; I took it out of my funds in the bank. 

Mr. Hallet. Out of what funds did you take it ? 



ORGAlSnZED OREME EST INTERSTATE COMMERCE 315 

Mr. Sullivan. I only had one fund down there in the bank ; I took 
it out of that fund at the First Federal. 

Mr. Halley. First Federal was a savings account ? 

Mr, Sullivan. Yes. 

Mr. Halley. Did you have $8,000 in the bank at that time ? 

Mr. Sullivan. I had more in there ; I don't know how much it was. 

Mr. Halley. I just want to get the date of the withdrawal from the 
bank of the $8,000. 

Mr. Hall. The Government already has all of these bank records. 

Mr. Halley. IMiat was the date of the purchase ? 

Mr. SltjLivan. Mr. Halley, I cannot tell you. 

]Mr. Halley. Do you have a transcript of the bank account for 1947 
with the First Federal Savings Bank ? 

Mr. Hall. This is all that I have on that [hands papers to Mr. 
Halley]. 

Mr. Halley. Don't you have any bank records for the year 1947 ? 

Mr. Hall. If you will let me explain it I think we can save some 
time. 

Mr. Halley. Please do so. 

Mr. Hall. The Bureau of Internal Revenue has been investigating 
Mr. Sullivan for quite some time, and quite a few records have been 
turned over to them, and all records that were available to us have 
been made available to them, and they have them there, I am sure. 
Mr, Joe Brown would be familiar with it. Most of the evidence that 
we could find of Mr. Sullivan's financial position has been turned over 
to them. 

Mr. Halley. You must have a bankbook; did you give them the 
bankbook ; did you give the bankbook to the Bureau ? 

Mr. Sullivan. I have the bankbook at home. They have copies 
of that also. 

Mr. Halley. Right now we don't know whether you paid for this 
house in cash ornot. 

Mr. Sullivan, Out of the bank. 

Mr, Halley, Did you take cash to the bank and buy a cashier's 
check ? 

Mr. Sullivan. No ; I got the cash out of the bank. 

Mr. Halley. Are you sure of that ? 

Mr. Sullivan. Yes. 

Mr. Halley. Will you be sure to get the bank records here as soon 
as possible ? 

Mr. Sullivan. Yes. 

]Mr. Hunt. The bankbook ? 

Mr. Halley. Yes. 

Mr. Hunt. Do you know whether either of the Levitts have a 
house in Hendersonville, Jules or Leo ? 

Mr. Sullivan. No. 

Mr. Halley. Is it possible ? 

Mr. Sullivan. It could be. 

Mr. Halley, Do you know them ? 

INIr. Sullivan. I don't know Jules or the other fellow. I know of 
them but I don't know either one of them, 

Mr. Halley. You have never seen them? 

Mr. Sullivan. As far as I know I haven't. 



316 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. H ALLEY. Will you ^o on with your net worth for 1948 ? 

Mr. St'LLivAN. Lots 13 and 14 of block 13 of Northern Boulevard, 
first tract, $3,689.40. 

Mr. Halley. Is that the net value of that in 1948 ? 

Mr. Hall. That is cost. 

Mr. Halley. Book value ? 

Mr. Hall. Yes. 

Mr. Halley. Go ahead. 

Mr. Sullivan. That gets everything. Against that there was a 
mortgage to Brickell estates of $10,000. There was a note payable to 
N. W. Carter for $1,883.33 ; there was an automobile from John Jones, 
Inc., for $900. 

Mr. Halley. Do your records show the total value of your assets 
at the end of 1948? 

Mr. Hall. No. 

Mr. Halley. Total book value? 

Mr. Hall. This doesn't include all of his assets. 

Mr. Halley. You mean he has some more assets ? 

Mr. Hall. Cash on hand. I have no way of finding out what that 
was. 

Mr. Halley. Was there cash on hand? 

Mr. Sullivan. There must have been. 

Mr. Halley. Do you have a safe-deposit box, Sheriff Sullivan? 

Mr. Sullivan. No. 

Mr. Halley. Does your wife? 

Mr. Sullivan. No. 

Mr. Halley. Did you ever own a safe-deposit box? 

Mr. Sullivan. No. 

Mr. Halley. Did your wife? 

Mr. Sullivan. Never. 

Mr. Halley. Did you keep sums of cash on hand? 

Mr. Sullivan. Yes, I did. I had money in the Morris Plan Bank,' 
where the Miami Industrial Bank is now, when it went broke. 

Mr. Halley. Where did you have it? 

Mr. Sullivan. In the Morris Plan Bank. 

Mr. Halley, You mean in a bank account ? 

Mr. Sullivan. I had it in that bank when the bank went broke. 
That was right innnediately before I built the home at 1803 Northwest 
Sixth Street. That bank went broke then and I didn't put any more 
money in a bank at all for a long time. 

Mr. Halley. You mean that after the Morris Plan Bank went broke 
you became a little worried about banks? 

Mr. Sullivan. After all I just put in what was necessary to have 
in the bank. 

Mr. Halley. When did that bank go broke? 

Mr. Sullivan. It was either the first of 1937 or the last of 1936. 

Mr. Halley. Foi- how many years did you keep from putting money 
in the baidi? 

Mr. Sullivan. Well, in 19;)9 I put money in a bank. 

Mr. Halley. Did you ever discuss with Deputy Sheriff Burke your 
joint unwillingness to ])ut money in banks? 

Mr. Sullivan. What? 

Mr. Halley. Did you ever have a talk with him about the fact that 
neither of you liked the bank? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 317 

Mr. Sullivan. I don't know whether I did or not. I don't know 
that I did. 

Mr. Halley. Isn't it a fact that at the end of 1948 you had total 
assets in excess of $75,000? 

Mr. Sullivan. I don't know what I had at the end of 1948. What- 
ever is on here is right. 

The Chairman. Mr. Sullivan, do you think in 1948 that $75,000 
would be a reasonable appraisal of your assets? 

Mr. Sullivan. It could have been; I sold some property in 1948. 
I imagine it would possibly be around $70,000. I sold a group of lots, 
seven or nine lots, in 1947 down here south of Fifteenth Road. I 
don't know what subdivision they are in. I bought those lots for 
$7,500. 

Mr. Halley. You bought them right after you became sheriff, 
didn't you ? 

Mr. Sullivan. It wasn't long after I became sheriff. 

Mr. Halley. You bought them for $7,500 ? 

Mr. Sullivan. Yes. 

Mr. Halley. Two years later you sold them for $25,000 ? 

Mr. Sullivan. That's right. 

Mr. Halley. From whom did you buy those lots ? 

Mr. Sullivan. From the Railway Express Co. 

Mr. Halley. To whom did you sell them? 

Mr. Sullivan. I don't know. Who did I sell them to ? I don't know 
the people. It was the first time I ever saw them, but they built some 
big apartment houses on them, on the whole thing. 

Mr. Halley. Your net on the deal was $17,500? 

Mr. Sullivan. That's right. I borrowed five or six thousand dol- 
lars, or something like that, at the time I bought the lots. 

Mr. Halley. When did you buy your home? 
•■ Mr. Sullivan. Which one ? 

Mr. Halley. How^ many homes have you ? 
, Mr. Sullivan. You mean the present one, the one I am living in 
now ? Each one of my places I built were my homes. I lived in almost 
all of them. 

Mr. Halley. You bought a house in 1946, did you not? 
, Mr. Sullivan. Yes, I did. 

Mr. Halley. Do you live in that now? 

Mr. Sullivan. No, I don't. 

Mr. Halley. Did you ever sell it? 

Mr. Sullivan. I sold it. 

Mr. Halley. For how much? 

Mr. Sullivan. For $10,500 ; no, $14,500 in 1947. 

^Ir. Halley. Do you know a Mr. William Lee ? 

^Ir. Sullivan. Yes, I do. 

Mr. Halley. Did he handle the transaction in which you bought 
a house in 1946 ? . 

Mr. Sullivan. Well, at the place that I was living at that time he 
handled the transaction of the place, in 1947, when I bought the house. 

Mr. Halley. You bought a house in 1947 from the Lucky Corp., 
did you not? 

Mr. Sullivan. That is true. 

Mr. Halley. Are you living in that house now ? 

Mr. Sullivan. No: I am not. 



318 ORGANIZED CRIME IN INTERSTATE COMMERCE: 

Mr. Halley. Did you ever live in it? 

Mr. Sullivan. Yes; I did. 

Mr. Halley. How long did you live in it? 

Mr. Sullivan. Well, I lived in it, I guess, more than 4 years. 

Mr. Halley. Have you sold it recently? 

Mr. Sullivan. I sold it, yes, couple or 3 months ago. 

Mr. Halley. What did 3^ou sell it for? 

Mr. Sullivan. $14,500. 

Mr. Halley. You bought it from the Lucky Corp. ? 

Mr. Sullivan. I bought it from Ford — Carvel Ford. 

Mr. Halley. You bought it from Carvel Ford ? 

Mr. Sullivan. Yes. 

Mr. Halley. Who is Carvel Ford? 

Mr. Sullivan. Carvel Ford is a man that is from out in Illinois, ini 
the restaurant business there. 

Mr. Halley. When did you buy it from Mr. Ford ? 

Mr. Sullivan. Well, I bought it in 1947 from Mr. Ford. I movedl 
in the property sometime in 1946. 

Mr. Halley. You rented it between 1946 and 1947 ? 

Mr. Sullivan. I was supposed to pay rent on the property. 

Mr. Halley. But you didn't? You had it rent-free? 

Mr. Sullivan. Free with the exception of some, I think, aboutl 
$300. 

Mr. Halley. Who owned it in 1946 ? 

Mr. Sullivan. Well, I guess Ford did, because he owned it wheaj 
I moved there. 

Mr. Halley. Did you ever hear of James Alexander Poulos? 

Mr. Sullivan. Only in this return here. 

Mr, Halley. What return? 

Mr. Sullivan. In this investigation of this case here. 

Mr. Halley. You mean about this house we are now talking aboutl 

Mr. Sullivan. Yes. 

Mr. Halley. Isn't it a fact that this house was bought by Mr. Lee 
as agent from Mr. Ford ? 

Mr. Sullivan. I don't know about that. I bought the house from 
Ford. 

Mr. Halley. Didn't Ford buy it in the name of a James Alexander 
Poulos, and wasn't that really you ? 

Mr. Sullivan. Not me, no. 

Mr. Halley. Well, you moved right in, didn't you? 

Mr. Sullivan. Did you say Ford bought it ? 

Mr. Halley. I mean Lee. 

Mr. Sullivan. I don't know who Ford bought it from. 

IVfr. Halley. I meant Lee. Didn't Lee handle a transaction in 
which the house was purchased in 1946 in the name of a James Alex- 
ander Poulos? Your first name is James Alexander, isn't it? 

Mr. Sullivan. That's right. 

Mr, Halley. You have heard of James Alexander Poulos, have 
you not? 

Mr. Sullivan. Yes. 

Mr. Halley. He has figured in this deal? 

Mr. Sullivan. Yes, sir. 

Mr, Halley, Has anybody been able to find him? 

Mr. Sullivan, I don't know. 



ORGANIZED CORIME IN INTERSTATE COOVTMERCE 319 

]\Ir. Halley. Isn't it a fact that Mr. Lee handled the transaction 
in which the house was purchased in 1946? 

Mr. Sullivan". I don't know. I imagine that he did, because there 
was a lot of unpleasantness about it at that time. 

Mr. Halley. A great deal of unpleasantness ? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. You remember that he gave a check for $19,968 ; isn't 
that right? Did you know that? 

Mr. Sullivan. I don't know about that. 

]\Ir. Halley. You have heard about it though subsequently? 

Mr. Sullivan. In this thing here, that's right. 

Mr. Halley. And you moved right into it, is that right? 

Mr. Sullivan. I moved in there after I sold my property over on 
Southwest First Street. 

Mv. Halley. And when did you sell your property on Southwest 
First Street? 

Mr. Sullivan. Well, I guess it was sometime in 19 — . Anyway 
sometime in 1946, I believe. I believe it was sometime in 1946 when 
I sold my duplex there on First Street, and I sold the property there, 
and I didn't have no place to live at the time, to move to. This was 
during the war. 

Mr. Halley. So Lee let you live in this house, isn't that right ? Isn't 
it Lee that you dealt with ? 

Mr. Sullivan. No. And I stayed in my apartment, I believe, for 
about 5 months after I sold the property. 

Mr. Halley. You went into the house in 1946, didn't you? 

]\Ir. Sullivan. Yes. 

Mr. Halley. And you lived there, rent free, until November 12, 
1947, wdien you bought the house ; isn't that right ? 

Mr. Sullivan. With the exception of whatever payment that I had 
made of, I don't know, three or four hundred dollars, whatever it 
happened to be. 

Mr. Halley. Now, you bought this house from a company called 
the Luclry Corp., did you not? 

Mr. Sullivan. Well, I bought it from Mr. Ford. I bought the 
propertv from Ford. 

Mr. Halley. No. The deed is from the Lucky Corp. to Sullivan, 
isn't it? 

Mr. SuLLLV'AN. I bought the property directly from Ford. 

Mr. Halley. How could you have? Poulos bought the property 
from Ford. 

Mr. Sullivan. Yes, but 

Mr. Halley. Are you the same as Poulos ? 

Mr. Hunt. Which question do you want him to answer ? 

Mr. Sullivan. I bought the property personally from Ford. 

Mr. Halley. In what year? 
■, Mr. Sullivan. Forty-seven, and there was quite a bit of misunder- 
standing about this propertv, and I got a loan and bought the prop- 
ertv. it was a loan of $10,000. 

Mr. Halley. Who loaned you the $10,000? 

Mr. Sullivan. Lee. I was living in the property, and Ford told 
me that I could live in the property, and then the property was sold. 

Mr. Halley. Isn't it a fact that Lee gave a check to somebody named 
James Alexander Poulos, who bought that house for $19,968 in 1946, 



320 ORGAXIZED CRIME IN INTERSTATE COMMERCE 

and that you bouglit that lioiise from the Lucky Corp. for $15,500 in 
1947, on November 12; is that right? 

Mr. Sullivan. No. I bought the property myself from Ford. 

Mr. Halley. But the deed is from the Lucky Corp., isn't it ? 

Mr. Sullivan. Wherever the deed was, I guess it was. 

Mr. Halley. Isn't William H. Lee the president of the corporation, 
or wasn't he at that time ? 

Mr. Sullivan. I believe so. 

Mr. Halley. And you lived in that house, rent free, until Novem- 
ber 12, 194T; isn't that right? 

Mr. Sullivan. With the exception of the money that I paid on it. 

Mr. Halley. Have you ever known anybody at any time in your life 
by the name of Poulos? 

Mr. Sullivan. I never knew him. 

Mr. Halley. You never knew anybody at all by that name ? 

Mr. Sullivan. I never knew^ him. 

Mr. Halley. The question is: Did you ever know anyone by the 
name of Poulos at any time in your life ? 

Mr. Sullivan. I don't know. I don't remember. 

Mr. Halley. Did you ever know anybody by the name of Poulos at 
any time in your life — P-o-u-l-o-s? 

Mr. Sullivan. I don't know him. I know that some people, that 
Ford and Lee and some other party were around there. I know that 
there was quite a bit of arguing going on at a number of different times. 

Mr. Halley. Did you ever know anybody in your life by the name 
of Poulis? 

Mr. Sullivan. I don't believe I ever knew a Poulis. 

Mr. Halley. Did you know anybody by the name of P-o-u-l-i-s? 

Mr. Sullivan. Not that I know of. 

Mr. Halley. In the meantime have you been able to estimate your 
net worth at the end of 1948, or has your accountant been able to do it? 

Mr. Hall. At the end of 1948 it was about $70,000. 

Mr. Halley. You say about $70,000 ? 

Mr. Hall. Yes, $70,000. 

Mr. Halley, And that is w ithout taking into account cash on hand ; 
is that right? 

JSIr. Sullivan, That is everything, everything. 

Mr. Halley, I will ask your accountant. Is that $70,000 figure 
correct not including cash on hand ? 

Mr, Hall. That does provide for $3,000 or $4,000 cash on hand. 

Mr. Halley. Three or four thousand dollars cash on hand? 

Mr. Hall, Yes. $68,000 would cover his net worth, including the 
cash. 

Mr. Halley. How much cash did you have on hand at the end of 
1948? 

Ml-. Sullivan, Well, that I can't definitely say, 

Mr. Halley, What did you do with the $5,000 that was left over 
from the 1949 campaign ; did you keep that in the form of cash ? 

Mr. Sullivan. Well, I've got a record of that somewhere, right in 
my re(!ords here. I kept it in cash for awhile until I got everything 
all straightened out, and then put it in tlie bank and used it. 

Mr. Halley. When did you de])osit it in the bank? 
Mr. Sullivan. Well, oifhand, that is something I can't tell you 
definitely. 



ORGANIZED ORIME IN INTERSTATE COMMERCE 321 

Mr. Halley. Well, you are looking at the record. You said you 
deposited it in the bank. 

Mr. Sullivan. This is a record of the financial report of July 12, 
1950. 

Mr. Halley. So the chances are that at the end of 1948 you had 
that $10,000 cash that was left over at the end of your campaign? 

Mr. Sullivan. I had it ; yes. 

Mr. Halley. In cash? 

Mr. Sullivan. No, I didn't have it all in 1948 in cash, I don't guess. 

Mr. Halley. Where do you keep those large sums of cash? Your 
own estimate admits that you had several thousand dollars in cash. 

Mr. Sullivan. Yes, I have had, many times, yes. 

Mr. Halley. Where do you keep it ? 

Mr. Sullivan. I keep it at home. I keep it in my pocket, but I 
keep it at home when I get large sums. 

Mr. Halley. Where do you keep it at home ? 

Mr. Sullivan. Well, I keep it rolled up in an old blanket and hid 
up on a shelf. 

The Chairman. Where is that? 

Mr. Sullivan. I say I keep it rolled up in an old blanket on a shelf. 

The Chairman. Rolled up in a blanket on a shelf? 

Mr. Sullivan. Yes, sir; yes, sir; that is where I kept it. Well, I 
kept money like that for years. 

Mr. Halley. Have you ever kept it in a tin box ? 

Mr. Sullivan. Well, no. I have kept money in a tin box, what we 
call a fishing box. 

Mr. Halley. Did you keep yours in a fishing box ? 

Mr. Sullivan. No — I have, but I don't keep it in a fishing box now ; 
I haven't recently. 

Mr. Halley. How recently? 

Mr. Sullivan.. Three or four years ago. 

Mr. Halley. How much money ? 

Mr. Sullivan. At times I have had quite a bit. 

Mr. Halley. How much would be quite a bit ? 

Mr. Sullivan. Well, I have had as much as $12,000 in there at one 
time. 

Mr. Halley. In a fishing box ? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. At your home ? 

Mr. Sullivan. Yes; but I don't keep it there long. I move it from 
there, because it's dangerous. 

Mr. Halley. How do you get into these large cash transactions? 
How does it come about that you had accumulated $12,000 in cash? 

Mr. Sullivan. Well", in my election in 1944 there was a lot of money 
that was turned over to me in my campaign. 

Mr. Halley. "Wliat would you say was a lot? 

Mr. Sullivan. I don't know. There was quite a bit ; seven, maybe 
$8,000. 

Mr. Halley. Cash? 

Mr. Sullivan. Well, over the whole period of time ; yes. 

Mr. Halley. And were there some checks ? What was your entire 
campaign fund in 1944? 

Mr. Sullivan. Well, you see, other people spend money on your 
election, and I know in my election I didn't spend much. 



322 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Halley. Did you spend much in your election in 1948 ? 

Mr. Sullivan. I didn't spend too much in my election in 1948. 

Mr. Halley. How much did you spend in 1948 ? 

Mr. Sullivan. Well, we have a limit on the money that we can 
spend. 

Mr. Halley. You mean a legal limit? 

Mr. Sullivan. That's right. 

Mr. Halley. No one pays any attention to that, does he? 

Mr. Sullivan. Personally, what money you can spend yourself. 
Other people can spend plenty of money or all they want. You are 
allowed to spend, I believe, for sheriff, $1,500. 

Mr. Halley. You are allowed to spend $1,500? 

The Chairman. No ; it is more than that. I saw the report here. 

Mr. Sullivan. Well, since the new law that they have put in there. 
I believe they stated there was no limit to what they could spend for 
an election. I believe that was what they testified here yesterday. 

Mr. Halley. We are talking about before the new law\ 

Mr. SuixivAN. $1,500. 

Mr. Halley. $1,500? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. Why is it, if you knew you could only spend $1,500, 
why would you accept contributions far in excess of that, so you would 
have $5,000'left over to put in your pocket at the end of the election? 

Mr. Sullivan. People spent this money for different contributions. 

Mr. Halley. Wouldn't that $5,000 you had left over be just a cash 
gratuity that you had received from your well-wishers, if you could 
only spend $1,500? 

Mr. Sullivan. I don't know so much about that; but, anyway, I 
entered that into my — after talking with my auditor — I entered that 
into my tax returns. 

Mr. Halley. A^^io were some of your contributors in 1948? 

Mr. Sullivan. In 1948 and in 1944 I have the names, in the two 
elections; I have the names of these contributors. 

Mr. Halley. Can you give them to the committee ? 

Mr. Sullivan. Mr. Rolfe, who is the armored truck man, gave me 
$500 when I was running for office. 

Mr. Halley. In what year? 

Mr. Sullivan. 1948. 

Mr. Halley. Who else? 

Mr. Sullivan. I believe, I think Mr. Withers gave about $1,500. 

Mr. Halley. Don't you have any record ? 

Mr. Sullivan. I don't keep any records of the money that was given 
ill each case during election time. 

Mr. Halley. You don't? 

Mr. Sullivan. No, sir. 

Mr. Hali.ey. How do you know that you had $5,000 left over? 

Mr. Sullivan. When everything was counted up I had $5,000 left 
over. 

Mr. Halley. Wliat was the total you got in 1948? 

Mr. Sullivan. Oh, it run about $5,600, $5,700, something like that; 
fifty-five, maybe. 

Mr. Hunt. He means the total of the contributions, I believe. 

Mr. Sullivan. Well, those contributions come in different ways. 
I don't know; it was considerable in 1948. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 323 

Mr. Halley. It was far in excess of $5,600, wasn't it. Sheriff? 
Mr. SuLLiVAX. Yes ; I guess it was. 

Mr. Halley. Let us get the real figure now. You are under oath, 
you know. 

The Chairman. Sheriff, give us your best estimate of what it w^as. 
Mr. Hunt. Do you mean the total or what was left over? 
Mr, Halley. The total of what was given to him in contributions. 
Mr. Sullivan. Well, I don't know. It went into my office down- 
town ; personally, w4ien everything was all finished and all the records 
were straightened out, I had about $5,500 or $5,600. 

Mr. Halley. You mean that is what was left after the campaign? 
Mr. Sullivan. Yes, sir. 

Mr. Halley. What was there at the start of the campaign and what 
did you collect altogether from contributors? 

Mr. Sullivan. Well, the people gave me from time to time a lot of 
money. So help me, I was out working and I can't tell you. 

Mr. Halley. Did you get in contributions more than $10,000? 

Mr. Sullivan. Probably through the whole election ; probably there 
was more than that through the whole election. 

Mr. Halley. ]\Iore than $20,000 ? 

Mr. Sullivan. Oh, no. 

Mr. Halley. I am talking about the 1948 campaign — contributions 
for your campaign. 

Mr. Sullivan. No, sir. 

Mr. Halley. You are sure it was not as much as $20,000 ?' 

Mr. Sullivan. No, sir. 

Mr. Halley. Was it as much as $15,000? 

Mr. Sullivan. Well, that could have been. It might have been^ 
Through my office downtown, in the downtown department, the whole 
contribution to my election might have been more than that, but not 
to me. 

Mr. Halley. To you it was about $15,000, would you say? 

Mr. Sullivan. No. 

Mr. Halley. What was it to you ? 

]\Ir. Sullivan. Well, I probably got around $5,500. 

Mr. Halley. I thought you said that was what you had left over? 

Mr. Sullivan. That's right. 

Mr. Halley. Well, you must have spent something. 

Mr. Sullivan. I spent, it cost me about, I don't know, around $1,400 
myself, out of my own personal funds. 

Mr. Halley. Out of your own campaign funds ? 

]Mr. Sullivan. Yes, sir. 

Mr. Halley. Out of your om'ii pocket? 

^Ir. Sullivan. Yes. 

Mr. Halley. You paid that out of your own money ? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. You got only about $5,600 in contributions. Well, 
low about your campaign headquarters; who runs your campaign? 

Mr. Sltllivan. The whole election cost more than that, I guess. 

Mr. Halley. We are talking about the campaign. Did you have a 
leadquarters in 1948? 

Mr. Sullivan. Yes, I did. I had a headquarters this side of the 
'ourthouse. 

Mr. Halley. Who was in charge of your campaign ? 



324 ORGAXIZED CRIME IX INTERSTATE COMMERCE 

Mr. Sullivan. Well, I had several people there in charge. 

Mr. Halley. Name them, please. 

Mr. Sullivan. I had Holmes Allen, who was in charge of part of 
it, I had Bill Mcintosh, who was in charge of some of it, and my wife 
was there from time to time. 

Mr. Halley. Who handled the money ? 

Mr. Sullivan. People come in there that left it ; whoever happened 
to be there at the time they came in there. They would leave it there 
with them. My wife was there most of the time. 

Mr. Halley. Didn't you designate a particular person or persons to 
handle your campaign funds? 

Mr. Sullivan. My wife was there. I was around my campaign 
headquarters very little, a very little bit. 

Mr. Halley. And Mrs. Sullivan handled part of the money? 

Mr. Sullivan. That's right ; part of it. 

Mr. Halley. Who handled the rest of it ? 

Mr. Sullivan. There was money spent in different places. There 
was campaign headquarters that was set up on the beach. There was 
campaign headquarters that were set up down in the Homestead 
area. 

Mr. Halley. Who handled the money in those places ? 

Mr. Sullivan. They set it up themselves for me. 

Mr. Halley. Then let us get back to your headquarters in INIiami. 
Who, besides Mrs. Sullivan, handled the money and was responsible* 
for finances? 

Mr. Sullivan. Well, I guess Holmes Allen handled a big part of it ini 
the run-off. In the first race he took care of a lot of the work, and II 
guess he handled some of the money. 

Mr. Halley. Do you know Jack Friedlander ? 

Mr. Sullivan. I know who he is by these hearings that we have* 
been having here. 

Mr. Halley. Do you mean that you had never heard of Jack Fried- 
lander before these hearings ? 

Mr. Sullivan. Yes, sir. 

Mr. Halley. Who is he ? 

Mr. Sullivan. He is one of the reputed gamblers here in Dadei 
County. He was arrested here a couple of years ago, I believe, fori 
investigation. I don't know that he was charged with anything, but ho 
was investigated for gambling. 

Mr. Halley. Does he operate right in the city of Miami? 

Mr. Sullivan. Well, I can't tell you that, whether he does on 
not. 

Mr. Halley. Where is the Club 86 ? 

Mr. Sullivan. It's up on Biscayne Boulevard at Eighty-sixth! 
Street. 

Mr. Halley. Do you know an accountant named Costar?' 
C-o-s-t-a-r? Charles B. Costar. 

Mr. Si LLivAN. Who ? 

Mr. Halley. Charles B. Costar. 

Mr. Sullivan. Yes, I do. Wait a minute 

Mr. Halley. He keejjs the books for the Club 8(i. Haven't you 
ever gone up and asked him to show you the books for the Club 8'" 

Mr. Sullivan. No : I haven't. 



ORGANIZED ORIME IN INTERSTATE COMMERCE 325 

Mr. Halley. Do you know what kind of a place the Club 8() is? 
' Mr. Sullivan. They run gamblin*;. 

Mr. Halley. It is in Dade County, is it not? 

Mr. Sullivan. Yes, sir. 
■ Mr. Halley. They still do, don't they? 

• Mr. Sullivan. Xo. 

. Mr. Halley. They did the winter before this? 

Mr. StTLLivAN. No, I don't believe so. 

Mr. Halley. Did you ever arrest any of the people connected with 
the Club 86 ? 

Mr. SuLLFv AN. I guess I did. I don't know how" many people worked 
there, but we made a raid there. 

Mr. Halley. One raid ? 
r Mr. Sullivan. Yes, and we arrested fellows there and in other 
places, at times, that we understood worked there. 

Mr. Halley. After making a raid did you walk over to the ac- 
countant's office and look at the books to find out who owned the 
place ? 

Mr. Sullivan. No. 

Mr. Halley. Didn't you know that Jack Friedlander was one of the 
owners of the Club 8G ? 

Mr. Sullivan. No; I didn't. 
■ Mr. Halley. You never heard of that before? 

Mr. Sullivan. He was reputedly one of the owners with Charlie 
Thomas and 

Mr. Halley. Yarborough ? 

Mr. Sltllivan. Yarborough, yes. 

Mr. Halley. Then that information had come to you? 

Mr. Sullivan. Oh, yes. 

Mr. Halley. How much did Jack Friedlander contribute to your 
campaign ? 

Mr. Sullivan. Well, now, that I don't know. 

Mr. Halley. He did contribute, didn't he ? 

Mr. Sullivan. He could have. 

• Mr. Halley. He did, didn't he ? 

Mr. Sullivan. He could have ; I don't know whether he did or not. 

Mr. Halley. What do you mean by "He could have"? I might 
have, but I didn't. 

Mr. Sullivan. There are a lot of different ways it comes in. 

Mr. Halley. Did it come or did it not come? 

Mr. Sullivan. Definitely I don't know. 

Mr. Halley. What is your best guess; you are pretty sure that he 
did contribute to your campaign, aren't you? 

Mr. Sullivan. He didn't contribute nothing to me. 

Mr. Halley. Did he contribute to your campaign? 

Mr. Sullivan. In an indirect manner it might have happened. 

Mr. Halley. Didn't he contribute to your campaign? 

Mr. Sullivan. You are asking me directly. I can't tell you directly. 
I don't know positively. 

Mr. Halley. Do you think he contributed to your campaign? 

Mr. Sullivan. He could have. 

Mr. Halley. Did anybody ever tell you that he contributed to your 
campaign? 

Mr. Sullivan. No. 



326 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Hallet. What makes you think he could have ? 

Mr. Sullivan. You seem to be of the opinion that he did. Maybe 
you have the knowledge. 

Mr. Halley. If I know it, you will admit it ? 

Mr. Sullivan. No. I said he could have. I don't know. 

Mr. Halley. Do you know that it is contempt and perjury to say 
you don't know something that you do know? I just want to be sure 
tliat you understand that. 

Mr. Sullivan. Yes. 

Mr. Halley. If you say you don't know something when in fact 
you do know, it is perjury. 

Mr. Sullivan. But I don't know it. 

Mr. Halley. Don't 3^011 know that Jack Friedlander contributed 
$5,000 to your campaign? Let's have the answer without all of this 
fuss ; answer it yes or no. 

Mr. SuLLR^4N. I don't know that he did ; no. 

Mr. Halley. Do 3^011 know that he didn't? 

Mr. Sullivan. I don't know that he did or didn't. 

Mr. Halley. I have no further questions. 

The Chairman. Senator Hunt, do you want to ask the sheriff any 
questions ? 

Senator Hunt. No. 

The Chairman. I have two or three questions. I was interested 
in this honorary deputy sheriff business that you put out here. I 
liappen to have a card here dated June 5, 1947, issued to Abe Allen- 
berg. Is that a deputy sheriff commission that you issued? 

Mr. Slt^livan. That is one of my cards. This, as you will see, is 
not a signature of mine; it doesn't have my signature on that card. 
You can see that yourself. This is a stamped signature on here. 

The Chairman. I thought it was your signature. 

Mr. Sullivan. However, let me say this while I am on the subject. 
From what I personally know and have personally found out about 
Abe Allenberg, as far as his work goes since I have been sheriff, I 
have not definitely found out anything that has been wrong with 
Abe Allenberg. He is associated with very nice and outstanding 
people; he was elected president of the INIiami Beach Association. I 
am not sure whether it was State president or State vice president. 

Senator Hunt. President. 

]\Ir. Sullivan. I don't like to slap somebody down that I don't 
really know anything wrong about. 

The Chairman. Sheriff Sullivan, you apparently keep a list of 
your honorary deputy sheriffs. This seems to be No. 460. This one 
here doesn't look like a stamped signature. 

Mv. Sullivan. They are both stamped. 

The Chairman. It looks like a genuine signature to me. Anyway, 
is ho an honorary deputy sheriff or not? 

Mr. SuT,LivAN. Well, he has this card, and I imagine that Mr. 
Harkness issued this card to him. 

The Chairman. You of course know that he was sent down here by 
a person who has been characterized as one of the Nation's greatest 
gamblers. Frank Erickson; that he has been in business with Mr. 
Erickson; that he has managed the Wofford Hotel, and you have 
seen the list of its clientele. 



ORGANIZED OREVTE UST INTERSTATE COMMERCE 327 

Mr. Sullivan. I have seen these lists up there quite a bit, but this 
man here, if I am not mistaken, he and his group that he associates 
Avith, were all before our State supreme court and I think they nolle 
])i"ossed, or whatever happened to it. T know this happened a few 
years ago out at the Tro])i('al Park, and I believe a few years ago there 
Avas something pertaining to the ownership of the hotel, the Wofford 
Hotel, on Miami Beach. 

The Chairman. Do you recall the sheriff's convention when they 
came down here in 1949 or 1948, or whatever time it was? 

Mr. Sullivan. No. The sheriff's convention I believe came to Dade 
County in 1944, the year I was elected sheriff. 

The Chairman. Didn't you have one over at the Wofford Hotel 
about that time ? 

Mr. Sullivan. I believe that they had a convention there at that 
time. I am not sure. 

The CHAir.MAN. Just one other question, Sheriff Sullivan. 
Mr. SuLLivAX. On this occasion we had a big dinner there sometime 
in the year 1944. after I was elected sheriff. At that time we had all 
of the State officials here ; that was in 1944. I think I had a sheriffs' 
convention there in 1946 or 1947. 

The Chairman. You know that when Mr. Allenberg left the 
Wofford Hotel he went over to the Boulevard Hotel, don't you? 

]\[r. Sitllivan. I saw him at the Wofford Hotel in 1944 and then 
he was later at the Boulevard Hotel in 1940 or 1947. 

The Chairman. You know that the Boulevard Hotel had a horse- 
racing gambling place there? 

Mr. Sullivan. No; I didn't know it. We raided the place. I 
don't know whether it was one or two or three times that we arrested 
them for horsebooking there. 

The Chairman. Another question. You go to North Carolina 
occasionally, and you go fishing once in a while, as anyone is supposed 
to do. Does Mrs. Sullivan go with you fishing? 
Mr. Sullivan. No ; she doesn't go with me fishing. 
The Chairman. How about on the trips that you go on ? 
Mr. Sullivan. Well, when we take our vacation, contrary to what 
this gentleman got up here and stated yesterday about being gone 
for 6 months, me and my wife have not been out of the State and away 
from this office more than 16 days. 

The Chairman. In other words, wdien you take your vacation she 
goes witli you ? 

Mr. Sullivan. Yes. 

The Chairman. When you have a lot of money in the house in a 
fishing box, what do you do with it when you go on a vacation ? 

Mr. Sullivan. I have got the money now where I don't have to 
worry too much about it. Maybe I have a little bit lying around. 
The Chairman. I mean when you had $8,000, or whatever it was. 
Mr. Sullivan. I had more than that there. I don't have any stick- 
ing around in any fishing box. 

The Chairman. You said in an old blanket in your closet. 
Mr. Sullivan. Right. 

The Chairman. Do you just leave it there when you go away? 
Mr. Sullivan. Senator, if you look like you are a man that is worth 
a lot of money, you can expect somebody to try to break into your 
house, if they are looking for money. If you don't go around spending 

68958—50 — pt. 1 22 



328 ORGANIZED CRIME IN INTERSTATE COMMERCE 

a lot of money and letting people know you have money, you don't 
have to worry too much. Down in my office I have many, many people 
who come in there wanting to borrow money, wanting to sell me stock 
in this and that. 

The Senator. Do you leave it at home when you go away on vaca- 
tions ? 

Mr. Sullivan. We don't leave it in the house, Senator. 

The Chairman. You take it and put it somewhere else, or carry it 
with you ? 

Mr. Sullivan. That's right. 

The Chairman. Do you have any further statements you want to 
make. Sheriff Sullivan? 

Mr. Sullivan. I would like to have, if you will permit me, Mr. Hall, 
to kind of straighten out some of these things about my income tax. 
1 don't know too much about this, and that's the reason I got messed 
up in it before. 

The Chairman. If Mr. Hall thinks he can straighten it out, he is 
at liberty to do so. 

Mr. Hall. Sheriff had his income tax returns prepared, as you 
know, by Hardin McQueen, and as Mr. Sullivan stated, the income 
tax information was placed upon a yellow^ work sheet 

The Chairman. Are you speaking of what you know or what has 
been told you ; did you see the yellow work sheet ? 

Mr. Hall. I saw one of them. I saw where it had been removed 
from the file. 

Mr. Hunt. Senator, he will connect it up, if you will just permit him 
to testify. 

The Chairman. Go ahead. 

Mr. Hall. I know that Mr. McQueen asked Sheriff Sullivan for 
considerably more tax money than Mr. McQueen was putting on the 
tax return. It was difficult for me to check this because at the time 
special agents of the internal revenue were working on Mr. Sullivan's 
income taxes, and it was hard for me to get Mr. McQueen to thoroughly 
express himself as to what happened, however, I asked Sheriff Sulli- 
van to carefully look for any receipt that he might have that Mr. 
McQueen had given him. Mr. Sullivan was able to find a few receipts 
showing payments, second installments and third installments, of 
income taxes of $2,053 and $750. I have these receipts here, which I 
will present to the committee. 

The collector of internal revenue didn't receive that money, so we 
have asked Mr. McQueen to reimburse Mr. Sullivan for this money 
that was retained by him presumably. We have a check here recently 
of $1,820, which is not all of it, but is part of it for the payments that 
he retained. 

I want to bring out that Sheriff Sullivan has paid in 2 years, 1947 
and 1948, $2,629.19. Including the amended tax returns, as prepared 
by me, tliis money here would have covered these shoi'tages. I asked 
Sheriff Sullivan to let me include in his income tax $5,000 in 1944 and 
1948, when he told me about the campaign contributions which had 
not been expended. That is not income, and the Government doesn't 
expect a tax on it; however, during the income-tax investigation Joe 
Brown insisted that it was, contrary to rule IC No. 3270 which I 
quoted. This rule No. 3270 saj^s: 



ORGANIZED CRIME IN INTERSTATE COMMERCE 329 

Such campaign contribution to political office seeker is not income. 

However, to show (rood faith, I asked Sheriff Sullivan if we couldn't 
put them in his return, and that is why these amounts were put in there 
in 1947 and 1948. As soon as the examination is completed I intend 
to file a claim for refund for the tax paid on these twM) amounts. 

Mr. Hunt. Mr. Hall, are you able to testify the total ainount of 
real-estate transaction profits Sheriff Sullivan has earned since he 
became sheriff? 

Mr. Hall. Yes. His profits, as reported in his income-tax return, 
as prepared by me, showed a profit on the sale of real estate of $80,- 
469.10. His salary durin<r that period was $51,843.12. His interest 
and other income amoimted to $12,124.86. Total income accounted for 
of $98,937.08. His net worth durino- that period increased $40,000, 
which means that Sheriff Sullivan spent $53,000 in living expenses. 

Mr. Halley. I don't quite follow you. ^'V^lat period are you cover- 
ing? 

Mr. Hall. From January 1, 1944, until July 12, 1950. 

Mr. Halley. The period we have been following is for the period 
on which you were able to fix his net worth, from January 1, 1945, to 
January 1, 1949. As I recall it, you started out with something like 
$2,000 in the bank, and a rather small amount of real estate, and 
ended up w^ith a net worth in excess of $70,000 at the end of 4 years. 

Mr. Hall. I would like to leave these two statements here, which I 
believe will be self-explanatory. 

Mr. Halley. I very much doubt it. 

The Chairman. Anywav, he started off in 1945 with $3,000 in the 
bank, and in 1948 he got it"up to about $38,000. 

Mr. Hunt. You didn't count anything else in 1944, Mr. Chairman, 
but yon counted everything in 1948. 

Tlie Chairman, No. I was talking about money in the bank. 

Mr. HtTNT. The 1948 total is everything that he owns. 

Mr. Sullivan. In 1938 I didn't have any money in the bank except- 
ing the bank that went broke. 

Senator Hunt. Mr. Hall, your statement, collaborated in by the 
sheriff, is to the effect that certain cash was given to Mr. McQueen 
to remit to the Government for income taxes and it was not remitted? 

Mr. Hall. That is right. 

Senator Hunt. Would Mr. McQueen corroborate that statement ? 

Mr. Hunt. We have letters from him, together with a contribu- 
tion of $1,800 on the account, which we will be glad to submit to you. 

Senator Hunt. Was any action of any kind taken toward Mr. 
McQueen ? 

Mr. Hunt. Mr. McQueen has been advised that the sheriff will sue 
him for the balance. He has been in the hospital; he had a cataract 
or some kind of an eye operation. As I have stated before, he has 
remitted $1,826.22. There is a balance of $900, and he has been advised 
that we will sue him for the balance. 

Senator Ht^nt. Did the sheriff know how much money he had left 
with Mr. McQueen ? 

Mr. Hltxt. Mr. Hall can answer that. 

Mr. Hall. He doesn't know^ all of the moneys that he left with 
Ml-. McQueen. The only thing- that I could ask Mr. McQueen to 
reimburse him for was the amount that I could prove. I have a 



330 ORGAXIZED CRIME IN INTERSTATE COMMERCE 

copy of my work sheet here, which I will be glad to present, showing 
tlie source of the information and how I was able to prove that Mc- 
Queen had received the money from Sheriff Sullivan and that he didn't 
send it in to the collector of internal revenue. 

Senator Hunt. What is your proof that the money was left with 
Mr. McQueen and that it was left in cash ? 

JNIr. Hall. I have the receipts here. Here are some photostatic 
copies of receipts. I have the originals also. My statement as to 
Mr. McQueen was developed from four main sources; first, receipts 
that McQueen himself issued to Sheriff Sullivan showing that he had 
received moneys for income-tax payments that were not sent in to 
the Government ; also bank deposit records that were furnished by Mr. 
McQueen to me; the record of the collector of internal revenue, Jack- 
sonville, Fla., and canceled checks drawn on the sheriff's account and 
charged to the sheriff's account. 

Senator Hunt. When the sheriff signed his final income-tax return 
the amount of money being remitted was on the face of that return, 
wasn't it? 

Mr. Hall. I think Sheriff Sullivan should answer that question. 
I know the answer. He signed blank returns after McQueen made 
up the yellow work sheet, and Sheriff Sullivan thought, up until re- 
cently, that it was a part of the regular income-tax return. 

Mr. Sullivan. Senator, let me say one word here. Mr. McQueen 
has made up my income-tax returns since either 1938 or 1939. He 
used to make them for me when I was a police officer on the corner. 
He would come by and I would tell him what I had and he would go 
to his office and tell me how much extra I owed, which I paid. 

Senator Hunt. Sheriff, you sign income tax returns in blank? 
That is the statement that Mr. Hall made. 

Mr. Sullivan. I would sign them because I had no reason to not 
do it. He had taken care of me all the time before, and he didn't 
charge me nothing but $5 while I was a policeman on the corner, 
so when I got to where I could do a little better, I paid him more 
money each time he took care of my income taxes. I didn't know 
but what he was a regular income tax man and that he was recognized 
by the Government as such. When I started checking they told me 
something else. They told me that they would make me new books 
and that they would show me how to make my income tax reports 
out, and that McQueen is not much of an income tax man, and that 
they didn't think too much of him. I know that he had one of those 
things hanging on the wall showing that he was an accountant. 

Senator Hunt. A certified public accountant? 

Mr. Sullivan. Yes, a certified public accountant; he had it there 
on the wall. He told me that he could sit down with the Govermnent 
tax men and work things out with them. He said that they advised 
with him from time to time and he advised with them, and I had 
no reason to disbelieve it. I never paid any attention to what was 
going on. The first thing I knew of it is when one of the income tax 
men told me that he didn't place much confidence in him and that is 
when I thought I had better start doing something about it and find 
out where I stood. 

Senator Hunt. You didn't offer to do anything about it until the 
internal revenue people were investigating your income tax return? 

Mr. Sullivan. That is when I learned it. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 



331 



Mr. Hunt. I would like to state that Mr. McQueen first remitted 
$700. After I had written a letter to him he came in the office and 
remitted $700, and I returned it to him. After two or three more 
letters to him he sent in $1,826.22, or whatever that amount is. 

The Chaieman. I think the record should show these figures with 
respect to Sheriff Sullivan's income tax return. 



Year 


Per return 


Corrected 


Year 


Per return 


Corrected 


1943 


$2, 387. 75 
5, 564. 77 
6,150.00 


$7, 033. 51 
5,591.02 
7, 836. 87 


1946 . . 


$6, 436. 51 
16, 270. 92 
9,159.42 


$.36,511.07 


1944. 


1947 


20, 323. 48 


1945- 


1948 . . .. 


19, 109. 40 









The Chairman. I have never understood exactly how you could have 
in 1944 a net worth of $2,500 or $3,000 and then in 1948 you could 
have $70,000 or $75,000 net worth, after paying expenses and what not 
during that time. What is the explanation of that ? 

Mr. Sullivan. Well, Senator, I don't know how much in salary 

The Chairman. You made $7,500 for a while and then $10,000. 

Mr. Sullivan. Yes. 

The Chairman. Beginning with 1945 to 1948 that is a discrepancy 
of $2,500, and in the course of 3 years you show a net worth of $75,000. 

Mr. Sullivan. What time? 

The Chairman. From 1945 until 1948. 

Mr. Sullivan. I sold this piece of property for $25,000, which I 
bought for $7,500, which took care of a big part of that. My total 
earnings for that period was $30,469.10 in real estate, and my salary 
amounted to $51,343.12. 

The Chairman. That is over the whole period of time. I was talk- 
ing about the difference between the end of 1944 and 1948, which repre- 
sents 3 years. Your salary would not be $50,000 for 3 years. 

Mr. Hunt. That would be 4 years. 

Mr. Sullivan. I tried to put in my income-tax returns everything 
that I made, and I tried to get in all of the bills that I had when they 
came to me. When it came to the question of these additional improve- 
ments that I put on the property that I bought they told me that I had 
to get all of these bills that were several years old. You can't get all 
of those bills unless you keep an accurate record of what you put on 
any building. 

The Chairman. Is that your explanation? 

Mr. Sullivan. Yes. 

The Chairman. We will file this as exhibit No. 163. (Exhibit No. 
163, Financial statements of Sheriff Sullivan, ap)pears in the appendix 
on p. 787.) 

The Chairman. Mr. Hunt asked me to read this statement into the 
record, which I will now do : 

I woii'ld like the record relative to the elisor matter to show that although 
I took issue with Judge Milledge upon legal grounds only, I have a deep regard 
for his ability and fairness as a circuit judge. 

EicHARD M. Hunt. 

The Chairman. The committee will stand recessed for 5 minutes. 
(Recess.) 



332 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. Yesterday Melvin Richard had considerable to say 
about Mr. Plissner. The chairman received this morning a telegram 
from Mr. Plissner, reading as follows : 

Melvin Richard perjured himself before your committee this afternoon. I 
will be in your hearing room tomorrow ready to testify under oath. Richard is 
trying to use your committee to advance his political fortunes. I am an innocent 
man who lias been libeled and slandered by Richard. If you are interested in 
justice and fair play you will call on me and listen to my story. 

Harry Plissxer. 

TESTIMONY OF HARRY PLISSNER, MIAMI BEACH, FLA. 

The Chairman. Do you solemnly swear that the testimony you will 
give this committee will be the truth, the whole truth and nothing 
but the truth, so help you God? 

Mr. Plissner. I do. 

The Chairman. You may proceed, Mr. Plissner. 

Mr. Plissner. Before this committee yesterday, Melvin J. Richard 
attacked my character and my respected position in the Miami Beach 
community. Richard has published his charges previously in news- 
papers and magazines throughout the country. 

Tliese charges have been broadcast on Nation-wide radio book-ups. 
They have now placed on record by a committee of the United States 
Senate. They are serious charges, and as such they deserve the atten- 
tion of your committee. But these charges are not true. In his zeal 
to settle a political dispute, Melvin Richard has perjured himself 
before a committee of the Senate of the United States. 

Yesterday Richard attempted to link my name with the criminal 
underworld which this committee is investigating. I am grateful 
that the committee, in the performance of its duties, has given me the 
opportunity to defend my name and character against the perjured 
testimony of Melvin Richard. 

Richard perjured himself when he denied under oath that I had 
told him the names of the men who wished to operate punchboards 
in Miami Beach. On the only occasion on which we have ever dis- 
cussed punchboards I told Richard, "Jerry Greenwald wants to know 
if you can arrange for him to operate punchboards.*' Richard, who 
is Greenwald's attorney, replied, "Jerry must be kidding," and we 
went on to discuss other matters. 

If the committee has any questions regarding this very brief dis- 
cussion between myself and Richard, I shall be glad to answer them. 
What I wish to make evident now is that Melvin Richard knowingly 
gave false testimony to this committee yesterday. 

For some time now Richard and I have been engaged in a political 
controversy bearing on local conditions in the city of Miami Beach. 
For political motives Richard has sought to destroy my reputation 
by manufacturing the story of an attempted bribe on my part, a story 
based on the conversation whose entire substance I have just stated. 

On Noveuiber 16, 1940, the Miami Herald re])orted an address 
delivered by Richard to the INIiami Beach AMVETS. In this address 
Richard stated that he had been offered a bribe of one-fifth of a 
$2r)(),()()0-a-year ])unchboard business. Two months later, in an inter- 
view published by the St. Louis Post-Dispatch, Richard repeated this 
story. But l)y fJanuary Richard's one-fifth share had multiplied from 
$50,000 to $2()0,000. 



f 



ORGANIZED GRIME IN INTERSTATE COMMERCE 333 

Havin<!: reached the top-income bracket, Richard then became 
national news. He passed his story on to syndicated cohimnists, to 
radio commentators, and to one of the most widely circulated of the 
slick magazines. 

At some point in the development of Richard's bribe story, people 
who had seen punchboards in operation in other parts of the country 
began to wonder how an annual profit of a million dollars or even — 
to take another of Richard's figures, $250,000 — could be made by 
operatino; them on Miami Beach. 

Tourists don't play punchboards. It takes time to raffle off a punch- 
board, and tourists don't stay here long enough. The 40.000 perma- 
nent residents of Miami Beach, buying chances at a few cents apiece 
certainly were no source of a million dollars annually. Richard's 
story made very little sense to anyone who thought about it, and he 
had done such an excellent job of promulgating this story that people 
in Miami Beach couldn't help thinking about it. Some of these peo- 
ple were newspapermen and local radio commentators, and their 
understandable skepticism was the substance of the "scurrilous at- 
tacks" to which Richard referred in addressing this committee yester- 

At this time Richard Avas under heavy pressure in this community 
to present his unquestionably serious charges to a grand jury. The 
local newspapers, civic organizations, and hundreds of prominent citi- 
zens demanded that he present his story under oath and that he dis- 
close the name of the alleged attempted briber. From the first Rich- 
ard has described this person in such a way that no one in this com- 
munity had any doubt of his identity, but Richard had not openly 
called me by name. 

Under this pressure Richard finally did appear before the grand 
jury, reported the bribe offer and named me as its source. At that 
time he also took the liberty of repairing an extraordinary and amaz- 
ing oversight in his earlier accounts of the bribe. For the first time 
he now recalled that not only had he been asked to connive at punch- 
boards but bookmaking was also included in the package. 

By this time Richard had evidently learned just wdiat a punchboard 
is and how implausible his original story had appeared. Bookmaking 
plugged the hole in this earlier draft of the story, and it now made 
sense, untrue as it was. 

I should like to point out to this committee, however, that in his 
testimony yesterday Richard reported the take on this protean gam- 
bling deai to be $750,000, not $1,000,000, not a quarter of a million. The 
story still appears to be in the process of revision. 

Now I have known Richard for a good many years and most of this 
time quite intimately. I know his faults in a way that I hope no 
other man will ever experience them, and I also know that Richard is 
very good at certain things. He is especially skillful in remembering 
facts which may be important to him at a future time. And yet 
Melvin Richard has said on different occasions of the very same bribe 
offer that it was $50,000, $150,000, $200,000. 

For 8 months, moreover, Richard apparently forgot that book- 
making, compared to which punchboards are hardly worth mention- 
ing, was part of the so-called deal. It is possible that Melvin Richard, 
who has built his campaigns on his claim that the take from Miami 



334 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Beach bookmaking is $16,000,000 a year forgot about bookmaking 
when he spoke to the AM VETS, to the St. Louis reporter, to Bob 
Consicline and Drew Pearson and only mentioned punehboards. Or 
is the truth of the matter that Miami Beach coukl never have produced 
a milhon dollars a year for punehboards, that Richard realized this 
at last, and that he was forced to promulgate a new fiction in order to 
make the rest of his story stick. 

If Richard's memory appears weakened now, more than a year since 
he was allegedly offered a bribe, he appears to have been even more 
forgetful directly after the date on which he claims to have been 
offered the bribe. That date, by Richard's sworn testimony, was June 
15, 1949. On June 22 of that year, however, Richard announced to 
the press that Ben Danbaum, a man of the highest character who I had 
introduced to Richard, was his choice for police chief of Miami Beach. 
And 2 months later, at a regular meeting of the city council, Richard 
again proposed Danbaum, my selectee for the job, as his candidate. 
Still later, in October, Richard named me as his choice for member- 
ship in the local housing authority. As witnesses I can name Mar- 
Echal Rothe, Miami Herald reporter, Burnett Roth of our city council 
(there are six other members besides Richard and Mayor Harold 
Turk of Miami Beach). 

Still another month went by and in November I was unanimously 
elected a member of the city planning board. Melvin Richard was 
present and voting. I refer you to the minutes of the city council. 

These actions on Richard's part clearly indicate that long after 
June 15, 1949, I enjoyed Richard's respect and was regarded by him 
as a valuable member of our community, in spite of the criminal be- 
havior which he now attributes to me as of that date. 

These appointments which I had received also indicate something 
else of importance on my behalf. For several years I devoted the 
greater part of my time toward helping to make Miami Beach a better 
place for decent people to live. For a part of this time Richard was 
my ally. He is now one of the few enemies I have ever had. But I 
have continued to think in terms of the betterment of Miami Beach, 
and I shall always do so. I have led an honest, honorable life, I have 
raised a family of which I am very proud. I have never placed a bet 
with a bookmaker. I have never taken bets. I have never entered 
a gambling house. 

Gentlemen, I am almost ready for your questions, but before I do 
that I would like to read into the record the ruling of Judge Holt 
when he dismissed the indictment against me on a writ of habeas 
corpus. 

This is from the Miami Daily News of March 20, 1950: 

Holt Ruuis Indictment Against Plissner Void 

Circuit .Tudge George E. Holt ruled today that the grand jury Indictment 
chax-ging Harry Plissner with attempting to b'ribe Miami Beach Councilman 
Melvin .T. Richard is invalid, illegal, and void. 

Plissner had taken the case to the circuit court 10 days ago in a habeas corpus 
action in which he sought to quash th& indictment. 

Judge Holt, in a three-page opinion, stated that he saw in the indictment "the 
ugly and evil specter of a political and partisan battle." He stated that the 
indictment returned a month ago, does not charge a crime, and he criti<"ized 
the Jury for returning the indictment without seeking th'e advice of the State's 
attorney or a competent lawyer. 



ORGA]SriZE,D CRIME IN INTERSTATE COMMERCE 335 

Referring to the reported $200,000 bribe Plissner is alleged to have offered 
Richard to permit "horse-booking" and punchboard operation at Miami Beach, 
Jndge Holt said : 

"The Miami Beach charter fails to disclose in any particular that the office 
of councilman has any legal authority whatsoever to enforce or relax the 
enforcement of the laws of that city in this respect. 

"It is purely a legislative office, nothing more, nothing less. Responsibility 
to enforce the laws of the city rests elsewhere. 

"It therefore follows that, where one does not possess requisite authority 
under law to enforce the ordinances of the city, a bribe or an offer of a bribe 
not to enforce certain regulations certainly does not contravene or violate any 
law of the city or the State. One cannot be bribed to do something he is power- 
less to do." 

Judge Holt added that "here we find the ugly and evil specter of a political 
and partisan battle, combined with a dissolved political partnei'ship, being 
brought into the grand-jury room by one against the other in this personal 
fight, apparently to punish one of the parties and gain an advantage over him 
by the other partner." 

Since the indictment does not charge a crime, Judge Holt stated, it constitutes 
a serious invasion of Plissner's constitutional rights. 

The action, he wrote, "despoils and abrogates not only the letter of the Consti- 
tution but its very spirit. If one is indicted and later acquitted by trial, the 
shadow and onus of the same will hang over and becloud his name and reputa- 
tion tlie rest of his life." 

In his opinion. Judge Holt pointed out that the grand jury should not be used 
as a club by a minority against the majority ; by pressure groups seeking to 
obtain that which has been denied them through other sources ; by anyone who 
wishe.s to nullify and void the very basis and essence of democratic government: 
the will of the majority of the people. 

"If this be done," he continued "the grand jury be used for these purposes, 
then every vestige of constitutional liberty and freedom will soon vanish, and 
a new era of witch-burning and night-riding vigilantes will come upon us; 
lawlessness will spread over the land " 

The Chairman. How much Ion o^er is that statement ? 

Mr, Plissner. Just one more minute. 

Tlie Chairman. Well, that isn't your statement. You can put it 
in the record, but that is the statement of a judge, and it doesn't 
particularly seem to bear on the matter in question here. 

Anything else, Mr. Plissner ? 

Mr. Plissner. No. I am ready and willing to answer all questions. 
Mr. Richards has had a holiday in the Miami Herald and in the Miami 
Daily News, which have continually been his source of publicity. I 
have had no opportunity to have a public forum. I am ready and 
willing to answer any and all questions. 

The Chairman. Mr. Plissner,, did you appear before the grand 
jury that indicted you in this matter? 

Mr. Plissner. I sent them a letter offering to appear and waive 
immunity, but they refused to listen to me. 

The Chairman. Mr. Plissner, have you ever been arrested ? 

Mr. Plissner. I was arrested once. I was arrested in Springfield, 
Mass., because I had sent out some coin-operated digger machines to 
some people there; and when the police of Springfield, Mass., told 
them they could not operate they asked them if they would permit 
them to have a trial. The trial was going to be a test case. 

The Chairman. Mr. Plissner, you were arrested then in connection 
with some slot machines or something ? 

Mr. Plissner. I volunteered for a trial, and I have here a photo- 
static copy of a newspaper where I walked in and said, "In order to 
have a test, I am ready and willing to submit to a test," and here is a 
photostatic copy of the report of the incident as it appeared in the 



336 ORGANIZED CRIME IN INTERSTATE COMMERCE 

papers: "Plissner offers self for test." And this happened in 1935 in 
Massachusetts. 

The Chairman. Have you been convicted? 

Mr. Plissner. Yes, sir. 

The Chairman. How much time did you serve? 

Mr. Plissner. I didn't serve at all. I paid a fine of $50. 

The Chairman. Well, have you operated any slot machines? 

Mr. Plissner. I wish to amend that last answer. I was a little 
excited and said that. I am now calmed down. What I meant was 
that I had one conviction which was in Sprino-field, Mass., and that 
case was a test case where I offered myself. I was arrested about 
four or five times in my entire life. They had to do with the opera- 
tion of coin-operated devices. I was in the penny-arcade, shooting- 
gallery business. In every case the case was dismissed. Four of the 
cases, I believe, had to do with licenses not being in the machines, and 
wdien they were brought into court I said, "The licenses are in there. 
They probably fell down." Then when they opened them up they 
found that the licenses were there. 

In the fifth case, I believe I was charged with operating a gaming 
device. It was a penny machine, and when it was brought to court 
the case was dismissed. So, the only conviction I ever had was this 
one on a digger machine in Springfield, Mass., and I submitted myself 
in that case. 

The Chairman. Weren't you arrested quite a number of times in 
Baltimore 

Mr. Plissner. I want to point this out to you- 



The Chairman. And you were convicted in Springfield ? 

Mr. Plissner. I think 

Tlie Chairman. I don't want to go into the details. 

Mr. Plissner. I tliink it is very unfair. 

The Chairman. Let me ask you this : Since about 1933 you have 
been in the vending-machine business in one way or another up until 
the time you came to Miami Beach about 2 years ago; is that true? 

Mr. Plissner. No ; that is not true. 

The Chairman. Didn't yoti start out in New York 

Mr. Plissner. I was in the 

The Chairman. In the Crane Machine Vending Co.? 

Mr. Plissner. No. My concern was Dreslow & Plissner. We were 
in the jobbing business, and we sold clocks, watches, and jewelry, and 
we sold to stores, and we sold to ^^arious carnival people. At that 
time we were promoting some carnival people to buy these digger 
machines. If we bought them for them, they would operate them 
and they would buy the goods from us. 

That is how we got into the vending-machine business. 

The Chairman. That is the Charles Sales Co.? 

Mr. Plissner. I don't even know what the Charles Sales Co. is. 

The Chairman. And then you operated the Springfield Novelty 
Co. in Springfield, Mass.? 

Mr. Plissner. That was part of the Dreslow & Plissner outfit. 

The Chairman. They were at 175 Fifth Avenue, New York City? 

Mr. Plissner. That was our nuiin office from which we supplied all 
our ])laces. 

Tlie Chairman. Louis Blatt, is he your brother-in-law ? 

Mr. Plissner. Yes. 



ORGANIZED CRIME m INTERSTATE COMMERCE 337 

The Chairman. And after that time you then went down to Balti- 
more, Md. 

Mr. Plissner. xVnd I operated a penny arcade. 

The Chairman. And operated the Mount Royal Novelty Co.? 

Mr. Plissner. Yes, a penny arcade. 

The Chairman. Were you arrested in connection with that opera- 
tion ? 

Mr. Plissner. Yes. I just explained. I would like to point out 
that I was in Baltimore for 7 or 8 years and had the place open 7 
days a week and 24 hours a day, and I found myself arrested for only 
havino' a license misplaced; and in one incident, where the police 
thou<>ht they had something, we went into court and it was thrown out. 
They said it was a legal machine. 

The Chairman. After you operated in Baltimore you operated three 
penny-arcade machines in Fort Meade, Md. ^ 

Mr. Plissner. Yes ; and to cater to thousands of soldiers and never 
have a single arrest out in Camp Meade, in a period of 3 years, I think, 
is a remarkable record. 

The Chairman. After that you opened a warehouse at 641 Wash- 
ington Boulevard? 

Mr. Plissner. Yes. I went out and bought a lot of salvage goods, 
and I went into the manufacturing business. 

The Chairman. You operated a shooting gallery? 

]\Ir. Plissner. Yes. I operated four of them. 

The Chairman. So, you are very familiar with the vending-machine 
business? 

Mr. Plissner. I certainly am, and I never was in any part of it that 
was illegal. 

The Chairman. All right, that is all, Mr. Plissner. 

Mr. Plissner. Thank you very much. 

The Chairman. I believe Mr. Wolfson is here. He has some other 
engagement, and he has to get away. 

Mr. Wolfson, do you solemnly swear that the testimony you will give 
this committee will be the truth, the w^iole truth, and nothing but the 
truth, so help you God? 

Mr. Wolfson. I do. 

TESTIMONY OF LOUIS WOLFSON 

The Chairman. Mr. Halley, do you have any matters you want to 
ask Mr. Wolfson about? 

Mr. Halley. Your name is Louis Wolfson ? 

Mr. Wolfson. Yes, sir. 

Mr. Halley. What is your business? 

Mr. Wolfson. I am associated in the Capital Transit Co. in Wash- 
ington, D. C, and am also the largest stockholder in the Merritt, 
Chapman & Scott Corp. in New York City. I also have other interests 
in theaters throughout the South and properties throughout Florida 
and supply businesses in Orlando and Jacksonville, Fla, 

Mr. Halley. Do you have other businesses? 

Mr. Wolfson. Well, I have stock in other corporations. 

Mr. Halley. Are you active in the management of any other busi- 
nesses ? 

Mr. Wolfson. No, sir. 



338 ORGANIZEI) CRIME IN INTERSTATE COMMERCE 

Mr. Halley. What business interests do you have in Florida ? 

Mr. WoLFSON. We have theaters in Tampa, Fla. 

Mr. Halley. Theaters? 

Mr. WoLFsoN. Yes. And in Jacksonville, Fla. ; supply businesses 
in Orlando, Fla., and in Jacksonville, Fla. Capital Transit is my 
principal interest. 

Mr. Halley. What kind of supplies ? 

Mr. WoLFSON. Industrial supplies. 

Mr. Halley. Building supplies ? 

Mr. WoLFSON. Yes, sir. Also have real estate in Tampa, Fla., and 
throughout Jacksonville. 

Mr. Halley. Did you contribute to the campaign of Fuller Warren, 
the Governor of Florida, in 1948 ? 

Mr. WoLFSON. Yes, sir. 

Mr. Halley. How much did you contribute ? 

Mr. WoLFsoN. I don't recall exactly now, but it was substantial. 

Mr. Halley. Would you give your best recollection ? 

Mr. Wolfson. It was in excess of $150,000. 

Mr. Halley. In excess of $150,000? 

Mr. WoLFsoN. Yes, sir. 

Mr. Halley. Was that a personal contribution by you ? 

Mr. WoLFSON. Yes, sir; it was. 

Mr. Halley. Was it solely your own money ? 

Mr. WoLFSON. Yes, sir. 

Mr. Halley. You obtained no part of your contribution from any- 
one else? 

Mr. WoLFsoN. No, sir. 

Mr. Halley. In what form did you make your contribution ? 

Mr. WoLFsoN. Part in cash, part by checks. 

Mr. Halley. How much of it did you contribute in cash ? 

Mr. WoLFsoN. I have no idea. 

Mr. Halley. Half? 

Mr. WoLFSON. No. I think it was less than half. 

Mr. Halley. And the remainder in checks? 

Mr. WoLFsoN. Yes, sir. 

Mr. Halley. To whom did you turn over your checks? I mean, to 
whom did you turn over your contribution ? 

Mr. WoLFsoN". The original contribution was turned over to Julian 
Fant who was treasurer of the Warren campaign. 

Mr. Halley. How much was the original contribution? 

Mr. WoLFSON. $25,000. 

Mr. Halley. And there were subsequent contributions ? 

Mr. Wolfson. Yes. 

Mr. Halley. How much ? 

Mr. WoLFsoN. I know it exceeded $150,000, but I don't know the 
exact amount. 

Mr. Halley. And to wliom were the subsequent contributions made ? 

Mr. WoLFSON. The majority of it went to Julian Fant 

Mr. Halley. Did some of it go to other people? 

Mr. WoLFsoN (continuing). State treasurer. Yes, sir. It went to 
other county lieadquarters. 

Mr. Halley. Would you state the persons to whom tlie other con- 
tributions went ? 



lORGAJSriZED ORIME EST INTERSTATE COMMERCE ' 339 

Mr. WoLFSON, Some of it was contributed to Dade County. I sent 
it direct to Dade County headquarters. I also sent it to the Hills- 
borough headquarters. There were others but those are the — I also 
sent it to the Jacksonville headquarters. There were othei^, but those 
three are the three particularly that I know. 

Mr. Halley. That is a very substantial contribution you will agree, 
would you not ? 

Mr. WoLFSON. Yes, sir. 

Mr. Halley. As a matter of fact it is far in excess of the amount 
that is permissible under the State law as you probably know. 

Mr. WoLFsoN. No, sir. I had no knowledge of any limit on con- 
tributions. 

Mr. Halley. You do know that now, don't you ? 

Mr. WoLFSON. No, sir ; I still do not. 

Mr. Halley. Whether or not you knew that you realized that you 
were making a very unusual contribution, did you not? 

Mr. WoLFSON. I realized it ; yes, sir 

Mr. Halley. Would you state your reasons ? 

Mr. WoLFSON. Fuller Warren had been a long-time friend of mine. 
With the investments that I and my associates have in the State of 
Florida and what I saw in the future if Fuller Warren was elected 
Governor it would be well worth any investment that any businessman 
would have made and had him elected Governor of Florida. 

I think he is one of the outstanding salesmen that I have ever seen 
and if there is any man that can sell the State of Florida the present 
Governor of the State of Florida can sell it. 

Mr. Halley. What investments did you have at that time that would 
be enhanced ? 

Mr. WoLFSoisr. Well, we are one of the largest holders of real estate 
in Duval County. We also have properties in Tampa, Fla. We have 
theaters in Tampa and Jacksonville. We probably have assets in 
excess of $7,000,000 or $8,000,000 in the State of Florida. 

Mr. Halley. Did you discuss your contribution with any persons? 

Mr. WoLFsoN. Well, yes, I probably did over a period of time. 

Mr. Halley. With whom did you discuss it during the time of the 
campaign and prior to the campaign? 

Mr. WoLFSox. Well, with the State committee. 

Mr. Halley. Did you discuss it with William H. Johnston? 

Mr. WoLFSox. If I did it was discussed at a finance committee 
meeting. He probably was present at the time, but I never had any 
direct discussion with INIr. Johnston. 

Mr. Halley. Did you know him ? 

Mr. WoLFSON. Yes. I have seen Mr. Johnston around Jackson- 
ville for the last 10 to 15 years. 

Mr. Halley. It has been stated that you, Mr. Johnston, and Mr. 
Griffin agreed to split the cost of the campaign three ways between 
you. Is that so ? 

Mr. WoLFSox. Well, when I came into the campaign it was under- 
stood that the three of us would carry the bulk of the campaign. 

Mr. Halley. What were you after, and as for the other two, did 
you find out what they were after? 

Mr. WoLFSON. Yes. I definitely made it clear. When I went into 
the canipaign I stated to the Governor and also to Mr. Johnston and 
Mr. Griffin that if they had any commitment from the Governor, the 



C}4U ORGANIZED CRIME IN INTERSTATE COMMERCE 

then candidate for Governor I was not interested in making any con- 
tribution, I was not interested in having my part in the election of 
the Governor, of this Governor. 

Mr. Halley. Did you know at that time that Mr. Johnston was 
president of several dog tracks in Florida ? 

Mr, WoLFSON. No, sir. I didn't know his connection. Of course, 
I knew he was associated with dog tracks, but I didn't know in what 
capacity. I thought perhaps he was head of the tracks due to the 
community chest drives and the Red Cross campaigns that I par- 
ticipated in with him to which he always made contributions, but I 
didn't know he was head of the dog tracks. 

Mr. Halley. Did you know that he headed a race track in Chicago? 

Mr. WoLFSON. Well, not directly, but I have heard hearsay, and I 
have heard him say that he had to leave the State during the cam- 
paign and go up to Chicago to open a horse track. 

I w^asn't too much interested in what his connections were or what 
his business interests were. 

Mr. Halley. Did you study the various Florida election laws care- 
fully at that time ? 

Mr. WoLFSoN. No, sir ; I never did. 

Mr. Halley. Did you know that it was illegal for a man connected 
with a racetrack to make a contribution to a campaign ? 

Mr. WoLFSoN. No, sir; I didn't know Mr. Johnston was in this 
campaign until after I got into it, and I had no knowledge of there 
being any illegality of a man being connected with racetracks. 

Mr. Halley. You knew that he put in just as much as you did, 
didn't you ? 

Mr. WoLFSON. No, sir, I still don't know that any man in the 
State of Florida put in as much money as I did in this campaign. 

Mr. Halley. Who handled the finances? 

Mr. WoLFSON. Mr. Julian Fant was State treasurer. 

Mr. Halley. Did you ever ask him for an accounting? 

Mr. WoLFSoN. No, sir. I had the utmost confidence in Mr. Fant. 
And when this amount got far in excess of what I originally agreed to 
put in they approached me and told me the thing was bogging down, 
and we were to try to stick. 

Mr. Halley. What did you originally put in ? 

Mr. WoLFSON. $25,000. 

Mr. Halley. That you gave to Mr, Fant originally ? 

Mr. WoLFSoN. Yes, sir. 

Mr. Halley. Who approached you and told you it would cost more? 

Mr. WoLFsoN. I was a]5proached by Mr. Fant and Mr. Griffin and 
probably others telling me there was urgent need for more funds. 

Mr. Halley. Wasn't it originally agreed that you, Griliin, and 
Johnstim would share the costs of the campaign and keep other 
money out ? 

Mr. Wolfson. Well, I don't think it was a definite agreement. It 
was talked that the three of us — there was talk that the three of us 
would carry the bulk of this campaign. 

Mr. Halley. That is in fact what happened, isn't it? 

Mr. Wolfson. Well, from the information that I have that is 
appai'ently what should have ha})])ened, but since he was elected Gov- 
ernor thei'e is talk that a lot of other people made contributions that 
I know nothing about. 






ORGAXIZED ORIME IN INTERSTATE COMMERCE 341 

Mr. Halley. Who are some of the other people? 

Mr. WoLFsox. Well, just hearsay. I understaiul that peo})le locally 
made $1,000 contributions or $500, after the election they said that 
they had made contributions and asked for consideration. 

Mr. Halley. What kind of consideration? 

Mr. WoLFSON. Well, they never did tell me. Of course, I advised 
them to oo down to State headquarters and tell thenu 

Mr. Halley. Did you expect any consideration for your contribu- 
tion I 

Mr. WoLFSON. No, sir. The oidy consideration I expected was this, 
for this governor to be an outstanding governor and sell the State of 
Florida. 

Mr. Halley. Well, you were in the business of selling supplies, 
Averen't you? 

Mr. WoLFSoN. Well. yes. We have sold supplies to the State of 
Florida for the last 20 years. 

Mr. Halley. To the State of Florida? 

Mr. WoLFsoN. Yes, to the State of Florida. 

Mr. Halley. And have you sold them to the State while Fuller 
AVarren has been Governor ? 

JNIr. AA'oLFsox. During his time in office we have done less business 
with the State of Florida than prior to any other administration in 
the State. 

Mr. Halley. Was that a surprise to you? 

Mr. WoLFSON. No, because it made no difference to us as far as 
the sup])ly business with the State of Florida is concerned. 

Mr. Halley. How long have you known Fuller Warren? 

Mr. WoLi<\s()x. I would say 15 or 20 years. 

Mr. Halley. Have 3'ou contributed to other campaigns of his? 

Mr. AVoLFsox. No, sir. This is the first campaign contribution I 
ever made to him. 

Mr. Halley. Can you explain why in the past you never contributed 
to his campaigns? 

Mr. WoLFsox. Well, when he ran for Governor in 1940 I wasn't 
in a financial position to make a contribution that I was in the position 
to make at a later time. I also never made any contributions to any 
political campaign during the early forties. 

Mr. Halley. It has been said that after the campaign was over in 
1948 you had a disagreement with Governor Warren and you were 
quoted in the newspapers as having made statements about gambling 
in the State of Florida and that you thought there should be a probe 
about it. Is that so? 

Mr. WoLFsox. No, sir. That wasn't exactly the facts. 

I would like to state at this time that I have absolutely no connection 
with crime, have not had any in the past and do not intend to in the 
future. I am a businessman and I have been a businessman doing 
manual work all my life. I think all this publicity that is appearing 
in the papers is hurting this State and some authority ought to dig 
into this thing and straighten the situation out. The only thing I 
did was make a statement to the Governor. I made no recommenda- 
tions. The only thing I told him was that something should be done. 

Mr. Halley. Did he follow your reconnnendation ? 

Mr. WoLFSox. That I cannot answer. 

Mr. Halley. I have no other questions. 



342 ORGANIZED CRIME IN INTERSTATE COMMERCE 

The Chairman. Mr. Wolf son, liow old are you ? 

Mr. WoLFSON. Thirty-eight. 

The CiiAiRiMAN. Thirty-eight? 

Mr. WoLFSoN. Yes, sir. 

The Chairman. You have several brothers, I understand. 

Mr. WoLFSON. I have four brothers. 

The Chairman. Your home is in Jacksonville? 

Mr. WoLFSON. Yes, sir. 

The Chairman. You made a large part of this money in the last 
few years, I understand, in the last 8 or 10 years. 

Mr. WoLFSON. Well, I know that I paid through the companies that 
I either control with my brothers or have an interest in income taxes an 
amount on an income in excess of $7,000,000. 

The Chairman. In excess of how much ? 

Mr. WoLFsoN. $7,000,000. 

The Chairman. Ton and your brothers ? 

Mr. WoLFSoN. My family ; my brothers and inyself ; yes, sir. 

The Chairman. How do you operate, as a partnership or do you 
each operate individually? 

Mr, WoLFSON. No, sir. We have many corporations and I think we 
have a couple of partnerships. 

The Chairman. The Capital Transit Co. is one of your invest- 
ments ? 

Mr. WoLFSON. Yes, sir. That is a recent investment. 

The Chairman. You own the controlling stock ? 

Mr, WoLFSON, Yes, sir, with my brothers and associates. 

The Chairman. It has been stated in the papers — I have forgotten 
the amount — how much you paid for your interest in the Capital 
Transit Co. 

Mr. WoLFSoN. Do you now want to know ? 

The Chairman. Yes. 

Mr. WoLFSON. Originally $2,250,000, but we have increased our 
holdings since then. 

The Chairman. The original investment was just something over 
a majority? 

Mr. WoLFsoN. No, sir. It was just below a majority and we have 
increased it to a majority. 

The Chairman, Was all of this money that you put in the cam- 
paign a donation or was some of it loaned ? 

Mr, WoLFsoN, No, The entire amount that I put in the campaign 
was a contribution. 

The Chairman. It was out of your own personal funds? 

Mr. WoLFsoN, Yes, sir. 

The Chairman. It wasn't corporate funds? 

Mr. WoLFSON, No, sir. 

The Chairman, Mr, Wolfson, do you know Alvin Brody out in 
Los Angeles? 

Mr. WoLFsoN. Yes, sir. I met him on two or three different occa- 
sions during the Governor's wedding. I think they had open house 
at his home. 

The Chairman. At 211 Montevo Road, Brentwood, Calif. ? 

Mr. Wolfson. I don't know the address, but at his home. 

The Chairman, Do you know Steve Brody ? 

Mr, Wolfson, Yes, sir. 



'ORGAlSriZED CRIME ITS' INTERSTATE COMMERCE 343 

The Chairman. What business were the Brodys in? 

Mr. WoLFSON. Well, Mr. Steve Brody was president of the Mono- 
gram Pictures Corp. 

The Chairmax. Wasn't Alvhi Brody one of the directors of Mono- 
gram Pictures? 

IMr. WoLFsON. No, sir ; not to my knowledge. 

The Chairman. AVlio is Mr. Fagelson? Do you know anyone by 
that name? 

Mr. WoLFsoN. No, sir. The name doesn't register. 

The Chairman. Did you buy any interest in the Monogram 
Pictures ? 

Mr. WoLFSON. Yes, sir. I was the largest stockholder in Monogram 
Pictures. 

The Chairman. When did you buy Monogram Pictures ? 

Mr. WoLFSON. In 1947 or 19-i8. 

The Chairman. How big an interest did you buy ? 

J^Ir. WoLFsoN. I had 100?}00 shares of stock out of 760,000. 

The Chairman. I mean, how much does your investment represent 
in money ? 

Mr. WoLFsoN. About $400,000. 

The Chairman. You had about that much investment or still have? 

Mr. WoLFsoN. iSTo, sir. I sold my interest. 

The Chairman. You sold your interest out ? 

]\Ir. WoLFSON. Yes, sir. 

The Chairman. When ? 

Mr. WoLFSON. About a year ago. 

The Chairman. Did Monogram Pictures give you a note for about 
$300,000 when you sold out ? 

Mr. WoLFsoN. Yes, sir. They gave us a note in excess of $300,000. 

The Chairman. How much was the note that you got ? 

Mr. WoLFsoN. My original transaction with Monogram also cov- 
ered some interest in pictures that we had in partnership with Mono- 
gram Pictures. We sold out to Monogram for, in the neighborhood, 
including the stock transaction, of about $1,250,000 and took about 
$586,000 notes. 

The Chairman. Notes of various amounts ? 

Mr. WoLFSON. Yes, sir. 

The Chairman. What did you do with those notes ? 

Mr. WoLFsoN. Well, a majority of the notes have been paid off. I 
held the notes and they were paid off on a w^eekly basis and I also 
have some notes in trust for some stock I sold and they are paying on 
the basis of $5,000 a month to the officers of Monogram and their at- 
torney who bought my interest out. 

The Chairman. AYlio did you sell the notes to? Who did you sell 
any of these notes to ? 

Mr. WoLPsoN. I didn't sell any of the notes. 

The Chairman. Did you assign any of them to anybody ? 

Mr. Wolfson. Yes, sir. 

The Chairman. Who did you assign them to? 

Mr. Wolfson. Originally I assigned them to the Atlantic National 
Bank in Jacksonville in trust. 

The Chairman. Who else did you assign them to? 

Mr. Wolfson. I don't recall any other notes that were assigned. 

The Chairman. Were any 

68958 — 50 — pt. 1 23 



344 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. WoLFSoN. I think we held the notes and they were paid on a 
weekly basis. 

The Chairman. AVere any New York people involved in this deal? 

Mr. WoLFSON. No. I neo:otiated with New York banks, but they 
didn't want to take the notes. 

The Chairman. You didn't assign any notes to anybody who lives 
in New York ? 

Mr. WoLFSON. No, sir. To the best of my knowledge, I don't believe 
I did. 

The Chairman. Did yon have one note for $300,000, do you 
remember ? 

Mr. WoLFSON. No, sir. I am pretty sure that I had a note for 
$350,000 which was against the stock that is assigned to the Atlantic 
National Bank in trust. 

The Chairman. The Atlantic National Bank in Jacksonville? 

Mr. WoLFSON. Jacksonville; yes, sir. 

The Chairman. Who is it in trust for? * 

Mr. WoLFSON. In trust for the Walter E. Heller Co., in Chicago. 

The Chairman. What is that? 

Mr. WoLFSON. They operate a commercial credit company. They 
are a banking institution, commercial banking. 

The Chairman. Did you go out to California in connection with 
this Monogram Pictures deal ? 

Mr. WoLFSON. Yes, sir. I have been out there a number of occa- 
sions. 

The Chairman. Well, who did you make the transaction with ? 

Mr. WoLFSON. Closing out the transaction? 

The Chairman. Yes, sir. 

Mr. WoLFSON. Mr. George Berle. I think his title is secretary of. 
Monogram Pictures. And their attorney. I don't recall his name. 
He is general counsel of Monogram. The two of them visited with 
me in my office and we closed the transaction. , 

The Chairman. How did you happen to get interested in Mono- 
gram Pictures? 

Mr. WoLFSON. Well, we saw the possibility of getting into the 
motion-picture field. We thought it was a good opportunity. AVe 
also thought we had one of the most outstanding motion pictures of 
modern time. The Babe Ruth Story. And we got deeper and deeper 
into the motion-picture field after that. 

Tlie Chair^ian. Who in New York is interested, if anybody, in the 
Monogram Pictures Co., do you know? 

INIr. Wo'LFsoN. No, sir. 

Tlie Chairman. Did you have any dealings with anybodv in New 
York about that? 

Mr. WoLFSON. No, sir. My deals were primarily with George Berle 
and Steve Brody, the president of Monogram. 

The Chairman. Mr. Wolfson, just as a matter of interest you went 
out. I believe for the wedding in California? 

Ml-. Wolfson. Yes, sir. 

The Chairman. Now, tell us you own the Tampa Shi|) & Drvdocks 
Co.? * ' . 

Mr. Wolfson. No. We own the Tampa Shipbuilding Corp. 

The Chairman. How many ships do you have, or, does this company 
own? 



ORGANIZED ORIME IN INTERSTATE COMMERCE 345 

Mr. WoLFSON. Well, the company is liquidated now and all we have 
is the land and the building. 

The Chairman. What is the Jacksonville company? 

Mr. WoLFSON. We operate under the name of Wolfson Bros, in 
Jacksonville, formerly the Florida Pipe & Supply Co. 

The Chairman. Do you have any ships that are owned by that 
company ? 

Mr. AVolfson. No, sir. 

The Chairman. Do you own any ships at all, or your interests? 

Mr. Wolfson. No, sir. I have a small boat of my own, but that is all. 

The Chairman. Do you have any big transport ships? 

Mr. Wolfson. No, sir. 

The Chairman. Did you have any in the last 2 or 8 years? 

Mr. Wolfson. No, sir. 

The Chairman. This Tampa company — is that a shipbuilding com- 
pany ? 

Mr. Wolfson. Yes. They operated building ships for the Navy 
during the war, and after the war built ships — 35,000 ton ships — 
for the French Government. 

The Chairman. When you took it over, did it have any ships there? 

Mr. Wolfson. Yes. They had one Navy ship that was incompleted. 

Tlie Chairman. But yen iiever had any ships that could be used for 
conveying cargo or anything of that sort? 

Mr. AVoLFSON. No, sir. 

The Chairman. Did you have any dealing with any of the Rocke- 
feller interests in connection with your ship activities? 

Mr. Wolfson, No, sir; not to my knowdedge. 

The Chairman. That you know. 

]\Ir. Wolfson. No, sir. 

Tlie Chairman. Who is the manager of the Tampa company now ? 

]\Ir. WoLFsox. Well, the company is liquidated now. 

The Chairman. Who was the manager? 

INIr. Wolfson. The latest president was P. B. Brill. 

The Chairman. And of the Jacksonville company, of the Jack- 
sonville AVolfson company? 

Mr. Wolfson. My brother Saul is ])resident. 

The Chairman. Any further questions? 

Mr. HaliJ':y. Just one question. Did you ever get back any of your 
contributions to the campaign of Fuller Warren? 

Mr. Wolfson, No, sir. I am not counting on getting it back. I 
never did expect any of the contributions back. 

Mr. H ALLEY. And you never did get any of it back ? 

Mr. Wolfson. No, sir. 

Mr. Halley. That is all. 

The Chairman. Thank you very much, Mr. Wolfson. We are sorry 
tb have inconvenienced you. 

Mr. Wolfson. That is quite all right. Thank you. 

The Chairm vn. The witnesses who are in attendance better contact 
Mr. Halley or his staff as to when they will be called to appear. The 
committee finds itself in the position of less than a third of the wit- 
nesses being called so that we are going to have to have a night session 
and then a session tomorrow. I, therefore, suggest that the witnesses 
in attendance get in touch with Mr. Hallev to see which ones will be 



346 ORGANIZED CRIME IN INTERSTATE COMMERCE 

called tonight and wliich tomorrow so as to inconvenience as few 
people as possible. 

The committee will recess now until 8 : 30 tonight. We will start at 
8 : 30 sharp. 

(At 6 : 30 p. m. a recess was taken to 8 : 30 p. m.) 

EVENING SESSION 

The Chairman. The committee will come to order. In the begin- 
ning I neglected to introduce a representative of the Judiciary Com- 
mittee, Mr. George Green, who is assigned by the Judiciary Committee 
to assist in this investigation. On my right is Senator Wiley's ad- 
ministrative assistant, Mr. Julius Calm. Senator Wiley, for reasons 
beyond his control, is unable to be present. Mr. Julius Cahn is here 
representing Mr. Wiley, and he is on Mr. Green's right. 

Mr. Schine, do you solemnly swear that the testimony you will give 
this committee will be the truth, the whole trutji, and nothing but the 
truth, so help you God ? 

Mr. ScHiNE. I do. 

TESTIMONY OF MEYER SCHINE, MIAMI BEACH, FLA. 

Mr. Halley. Mr. Schine, what is your occupation ? 

Mr. Schine. I am in the theater business and also operate hotels. 

Mr. Halley. Do you own any hotels in the State of Florida ? 

Mr. Schine. Directly, I don't ; no. A corporation owns them and, 
in turn, a corporation which I have stock in owns them. 

Mr. Halley. Do you control the Roney Plaza Hotel at Miami Beach ? 

Mr. Schine. Yes ; indirectly I control it. 

Mr. Halley. Do you also control the Boca Raton Club ? 

Mr. Schine. Yes; indirectly. 

Mr. Halley. Do you also control the Hollywood Beach Hotel ? 

Mr. Schine. No. 

Mr. Halley. Did you at one time ? 

Mr. Schine. No. 

Mr. Halley. Just the Roney Plaza and the Boca Raton ? 

Mr. Schine. Well, we also have the McAllister here. 

Mr. Halley. The McAllister Hotel in Miami ? 

Mr. Schine. Yes; and another hotel and apartment house, known i 
as the Gulfstream. 

Mr. Halley. Where is that located ? 

Mr. Schine. That is in Miami Beach. 

Mr. Halley. What is the name of the corporation through which i 
you control the Roney Plaza ? 

Mr. Schine. The name of the corporation is the Schine Theaters. 

Mr. Halley. You mean that the theater chain owns the Roney 
Plaza? 

Mr. Schine. No, sir. 

The Chairman. What is the name, Mr. Schine? 

Mr. Schine. The Schine Theaters. They don't own it; they own 
stock. 

Mr. Halley. What is the direct owner of the Roney Plaza? 

Mr. Schine. The corporation. 



ORGANIZED CRIME IN INTERSTATE COMMERCE 347 

Mr. Halley. The stock of the Roiiey Plaza is held 100 percent by 
Schine Theaters ? 

Mr. Schine. Yes. 

Mr. Halley. And you control Schine Theaters? 

Mr. Schine. My brothers and I own all the stock in the Schine 
Theaters. 

Mr. Halley. Mr. Schine, at various times have there been book- 
makins: concessions rented out at the Roney Plaza and the Boca 
"Raton Hotels? 

Mr. Schine. Only twice at the Eoney Plaza. I might preface this, 
if you don't mind. We acquired the Roney Plaza in '44, and I had 
previously rented a cabana in the place, and when I acquired it I had 
a chance to know what was going on and immediately we cleaned 
house. 

Mr. Halley. When did you acquire it ? 

Mr. Schine. January 1, 1944. 

Mr. Halley. Through the corporation ? 

Mr. Schine. Yes. And we cleaned out everybody, and we ran 
strictly without any bookmaking at all. 

Mr. Halley. For how long ? 

Mr. Schine. For 3 years. 

Mr. Halley. From '1944 to 1947? 

Mr. Schine. Yes. But in the meantime I had a great many com- 
plaints by the guests. The guests complained, and there was going on 
bookmaking on the quiet. And I complained to the manager, and the 
manager said he can't stop it. 

Mr. Halley. Who was the manager? Was it Carroll at that time? 

Mr. Schine. Carroll was, up to 1946, and then Lang became man- 
ager in '46. 

Mr. Halley. Neal Lang? 

Mr. Schine. Neal Lang ; yes. 

Mr. Halley. Is he the same Neal Lang who managed the Wofford 
Hotel? 

Mr. Schine. I don't think he ever managed the Wofford. I didn't 
know that he did. 

Mr. Halley. Wasn't he connected with the Wofford ? 

Mr. Schine. I didn't know he was connected, except I saw in the 
paper something about it. I understood he had managed a hotel called 
the Raleigh. 

Mr. Halley. He had only been with the Raleigh ? Wasn't he one 
of the original people to go with the Wofford ? 

Mr. Schine. I wouldn't know that. He had left town. When he 
came back he was hired as assistant manager by Carroll, and then 
Carroll left us and he took his job as manager. And he was manager 
there for, I think, 21^ years. 

Mr. Halley. I show you a copy of a lease between the Roney Plaza 
Corp. and various individuals. Was the Roney Plaza a corporation? 

Mr. Schine. Was the Roney Plaza a corporation ? 

Mr. Halley. Yes. 

Mr. Schine. Well, I don't know what you mean. 

Mr. Halley. Is there such a thing as the Roney Plaza Corp. ? 

Mr. Schine. I think so. 

Mr. Halley. When did you buy the Roney Plaza ? 

Mr. Schine. In 1944. 



348 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr, Halley. What month? 

Mr. ScHiNE. January 1, 1944. 

Mr. H ALLEY. And the corporation that owned the hotel directly was 
called the Roney Plaza Corp. ? 

Mr. ScHiNE. .1 don't know what the name was of the corporation. I 
think probably that is the name. 

Mr. Halley. Didn't that corporation, in the beginning of 1944, 
shortly after you bought the hotel, execute a lease to Harold Salvey 
and Charles Lebin ? 

Mr. ScHiNE. Oh, I'll tell you what happened. When we took over 
there was a cigar stand in the lobby, and we had no cigars or cigarettes 
or newspapers or magazines, and I asked Carroll to get some, and he 
couldn't, and finall3% lie brought down this — one of the men — and the 
lease was made for the cigar stand, and they agreed to pay something 
like $5,000 for the lease. And after a week I found they were making 
book, and we canceled the lease and gave them the money back; but 
we allowed them to run the cigar stand without rent, provided they 
didn't make book. 

Mr. Halley. Didn't you know at that time that Harold Salvey's 
business was bookmaking? 

Mr. ScHiNE. No; I didn't. 

Mr. Halley. You have learned that since ; have you not ? 

Mr. ScHiNE. I have seen it in the papers, that is all; but when we 
found they were making book we canceled the lease and gave them the 
money back. We agreed to let them stay at the cigar stand without 
rent. 

Mr. Halley. Thereafter, you did a lot of bookmaking at the Roney 
Plaza ; did you not ? 

Mr. ScHiNE. No. 

Mr. Halley. Has there ever been a book there? 

Mr. ScHiNE. Yes; but I told you for 3 years we didn't have any. 
Then in '47 the manager called me up — I was Nortli — and he said thati 
it was impossible to keep bookmaking out of the hotel ; the guests de- 
manded it and there was a lot of sneak bookmaking, as they call it. 

Mr. Halley. Wlio was your manager then ? 

Mr. ScHiNE. Mr. Lang. 

Mr. Halley. Lang^ 

Mr. ScHiNE. Yes. And I said, "Well, I'm coming up shortly and I" 
will discuss it with you." And I came up and we talked, and I said, 
"I hate to have it." 

"Well," he says, "I've got about nine of them now, but you can't stop 
the help or the guests or anything. We need one man to run it." 

Finally, they did make a deal with someone, who later I found 
was representing Erickson, but at the time the deal was made it was 
made with someone else^ — I don't know his name — by the manager 
and the general manager. I left for the coast, and when I got back 
they had closed them up. 

Mr. Halley. Did you know Erickson? 

Mr. Schine. I knew him just in a casual way. 

Mr. Halley. He stayed at your hotel sometimes, didn't he? 

Mr. Schine. Well, he had a cabana there, but he didn't come there 
himself. He had a cabana for friends of his who were not comiected 
with his business. 



ORGANIZED CRIME EST INTERSTATE COMMERCE 349 

f Mr. Halley. Before we get into any other hotel, is that the only 
^period during which you liad bookmaking at the Roney Phiza? 
■ Mr. ScKiXE. Well, the next year we also had it, and they were closed 
up, and then we didn't have it at all after that. 

Mr. Halley. What did Erickson pay you for the lease at the Honey 
Plaza '^ 

Mr. SciiiNE. I think he paid — I don't remember exactly — but it was 
over $25,000. 

Mr. Halley. The committee has been told it was closer to $50,000, 

Mr. SciiiNE. Well, it might have been closer, but not quite 50. 

Mr. Halley. ^Yas it over 40 ? 

Mr. ScniNE. I think it was around 40. 

Mr. Halley. Around 40? 

Mr. SciiiNE. Yes, sir. 

Mr. Halley. For the 3-month season at the Roney; is that right? 

Mr. ScHiNE. Yes. 

Mr. Halley. And that was on two successive years? 

Mr. SciiiNE. One year. He wasn't in on the deal the next year. 

Mr. Halley. In the second year he was not in on the deal? 
" Mr. SciiiNE. No. 
"" Mr. Halley. Who was in on the deal then ? 

Mr. SciiiNE. I don't know his name. It was a local man. 

Mr. Halley. Was it one of the S. & G. men ? 

Mr. SciiiNE. Well, I wouldn't know if he was connected with them, 
I presume he was. 

Mr. Halley. Are there records here in Miami which would show it, 
Mr. Schine? 

Mr. SciiiNE. I think they should be; jes. 
. Mr. Halley. Was there also bookmaking at the Boca Raton? 

Mr. Schine. Well, the same would apply in the Boca Raton. 

Mr. Halley. That there was bookmaking? 

Mr. Schine. Yes ; for about 2 years. 

Mr. Halley. Who handled tlie bookmaking at the Boca Raton 
Club? 

Mr. Schine. A fellow from Palm Beach, I think, 

Mr. Halley. Do you remember his name ? 

Mr, Schine. I think his name w^as 

'~ Mr. Halley. O'Rourke? 

Mr. Schine. O'Rourke, that's right. 

Mr. Halley. What did O'Rourke pay for the book at the Boca 
Eaton ? 

Mr. Schine, I think he paid something like $10,000 1 year, and I 
think he paid about $20,000 the next year, 

Mr. Halley. $20,000? 

Mr, Schine, I think so. 

Mr, Halley, Did O'Rourke run that book alone ? 

Mr. Schine. I wouldn't know. I never saw him run it, and I 
wouldn't know, 

Mr. Halley. Pardon me, Mr. Schine, but Mr. O'Rourke has testi- 
fied that he talked directly to you about that book. 

Mr, Schine, We talked it over, but I didn't make the deal with him. 
' Mr, Halley, Who negotiated the deal at the Boca Raton ? 

Mr, Schine, The manager negotiated it in the Boca Raton, 

Mr, Halley, Did you speak to O'Rourke about it at all ? 



350 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. ScHiN-E. Yes; I talked to him beforehand, in the year before 
he took it. I fonnd a rather deplorable condition there. Everyone 
of the caddies and bellboys were making- book and the only way 
I was told was that one man would I'lni it and then they all would 
stop, and that is exactly what would happen. 

]\fr. Halle Y. Did you just have one man run it ? 

Mr. ScHiNE. Yes. 

Mr. Halley. Did j^ou not, in fact, have two men run it? 

Mr. ScHiNE. What do you mean? 

Mr. Halley. O'Eourke wasn't there alone, was he ? 

Mr. ScHiNE. I don't know. 

Mr. Halley. Didn't Erickson actually run the book at the Boca 
Raton Club? 

Mr. SciiiNE. No ; I don't think so. 

Mr. Halley. Didn't Erickson actually have that book? 

Mr. ScHiNE. No. He was the one we dealt with, O'Rourke. 

Mr. Halley. Weren't Erickson's men actually running it? 

Mr. Schine. I wouldn't know. I wouldn't know who was there 
besides 0'K.ourke, because I never saw them run it. 

Mr. Halley. Mr. Schine, O'Rourke has testified before this com- 
mittee that he spoke to you about the operating of the book. As a 
matter of fact, I think that he said that you sent for him. 

Mr. Schine. No, I didn't. 

Mr. Halley. Did he approach you ? 

Mr. Schine. Yes, he approached me. 

Mr. Halley. And did you oiFer to let him have the book? 

Mr. Schine. I told him, after the manager sold me the idea that wo 
can't keep it out, I told the manager to negotiate the deal with him. 

Mr. Halley. Wlio talked price with O'Rourke ? 

Mr. Schine. Well, I told the manager what we might expect, and 
the manager talked price with him. 

Mr. Halley. Didn't Mr. O'Rourke say that he couldn't handle that 
book alone, that there was too much money involved ? 

Mr. Schine. No; he didn't say that to me. I know last year we 
didn't have anybody, and we had to put on 12 detectives to watch it. 

Mr. Halley, Mr. O'Rourke has a somewhat different version of it. 
Can you think of any reason why he should not tell the truth? 

Mr. Schine. I don't know anything about it; but I'm telling the 
truth. 

Mr. Halley. He says that he told you he couldn't handle the book 
alone, and that you said that you would find somebody to take half 
of it with him, that you brought Mr. Erickson into the picture, at the 
proper time. 

Mr. Schine. I think that is a mistake. 

Mr. Halley. Is that wrong ? 

Mr. Schine. Yes, because I have very little to do with bookmaking. 
I don't gamble myself, and I have very little knowledge of them. 

Mr. Halijey. Would you say that Mr. O'Rourke was mistaken ? 

Mr. Schine. I would say so. 

Mr. Halley. It would be a very difficult matter to make a mistake 
about, though. 

Mr. Schine. I don't know what he said. I didn't hear what he said ; 
but I am telling you the truth. 



lORGANIZED CRIME IN INTERSTATE COMMERCE 351 

Mr. Halley, Let me read this to you, and yon can make any com- 
ment on it that you want. Mr. O'Kourke testifying : 

Mr. O'RouRKE. I will tell you how that was, too: In talking to Mr. Schine, 
he said — in fact, the deal was too nuich for me to handle for the pri'-e that 
he asked, and I said, "I just can't go for it because I am not that kind of a man," 
and he said. "I would like to do it," and I said, "I would like to but I can't con- 
sider it," and I never met Mr. Ericksoii and didn't know of him. I knew of liim l)y 
reputaticui and he said, "Maybe you can work it around to where it won't be so 
tough on you," so he gave me Mr. Erickson — where Mr. Erickson was, and I 
don't know if he made an appointment or if I made an appointment. He was 
stopping in Miami at the Roney Plaza Hotel, and I said that I would go down 
and talk to him, so I went down and talked to him and he said, "John, if you 
want to rake a gamble on it, I will go with you." 

Mr. Schine. I disagree with him. I think he is wrong entirely. 

Mr. Halley. You disagree ? 

Mr. Schine. Yes. 

Mr. Halley. Yo^ did not mention Erickson to O'Konrke ? 

Mr. Schine. No. 

Mr. Halley. And to this day you don't know that Erickson had 
half of the book at the Boca Raton Club ? 

Mr. Schine. No, I don't. I didn't know. I know it now. 

Mr. H.vlle. Allien did you first learn of it? 

Mr. Schine. I read it in the papers. 

Mr. Halley. How recently did you read that in the papers ? 

Mr. Schine. Well, that was in New York, during the New York 
raid they had on Erickson. 

Mr. Halley. About 2 months ago? 

Mr. Schine. About 2 months ago, yes. 

Mr. Halley. And until that time you didn't know that Erickson 
had half of the book at the Boca Raton Club ? 

Mr. Schine. I didn't know who had it. All I knew was that 
O'Rourke was the man. 

Mr. Halley. How did Erickson happen to get the book at the 
Roney Plaza ? How did that take place ? 

Mr. Schine. Well, you see, for 3 years we were accosted by various 
people to let them make book, and we wouldn't. And because we 
tried to keep it what you might call an ultraclean hotel we refused 
to take on anybody, but it got so bad that the help and the guests and 
the sneak bookings were bad, and finally he came to me and talked 
to me about it, Erickson, and to me Erickson is no different than any 
other bookmaker. They all seem to be alike. And I talked it over 
with the manager, and they all agreed that it would be best to give it to 
a man who was responsible rather than to one who was fly-by-night, 
as you might say. 

Mr. Halley. 'Wliatever the reputation of the S. & G. Syndicate 
might be here in Miami, they seem to have a good reputation for 
paying their bills and being responsible. 

Mr. Schine. I never dealt with the S. & G. at all. 

Mr. Halley. Why did you find that you could take an outsider, 
like Erickson, and bypass the S. & G. ? That is really what the com- 
mittee would like to know. 

Mr. Schine. Well, the question was that if we were going to let the 
book out, we thought we might as well do it with somebody who was 
responsible and who will pay his debts and run it quietly, without 



352 ORGANIZED CRIME IN INTERSTATE COMMERCE 

having a lot of runners; and that is what they did, but they closed 
them up very quickly. 

The Chairman. Mr. Schine, where do yon live? 

Mr. Schine. Gloversville, N. Y. 

The Chairman. And do you know Frank Erickson in New York? 

Mr. Schine. I know him only casually. 

The Chairman. I mean, do you see him and talk with him ? 

Mr. Schine. I saw him in the lobby and barbershop in the Waldorf, 
and I see him around, but I don't know him well. 

The Chairman. Did you have any business with him in connection 
with this ? 

Mr. Schine. No. 

The Chairman. Where did you talk with Mr. Erickson about the 
book at the Roney Plaza ? 

Mr. Schine. He came up to my office. 

The Chairman. Here in Miami Beach? < 

Mr. Schine. In Miami Beach. 

The Chairman. How did he pay you that $40,000, or whatever it 
was? 

Mr. Schine. He didn't pay it. It was done by somebody else. He 
wasn't directly connected with it. 

The Chairman. Who was it that paid you, sir? 

Mr. Schine. I don't know. I left for the coast, and the manager 
made the deal with one of his men, I assume. 

The Chairman. Did you get the money yourself, or did the manager 
get it ? 

Mr. Schine. No; the check was given to us and deposited in the 
bank. 

The Chairman, By whom was it signed ? 

Mr. Schine. I couldn't tell you that. 

The Chairman. It was a $40,000 check, and you don't remember 
who signed it ? 

Mr. Schine. I wasn't here. When I came back the place was closed ; 
that is, they stopped it. 

The Chairman. Do you only operate these two hotels in Florida? 

Mr. Schine. No, we operate four. 

The Chairman. I mean, that had bookmaking. 

Mr. Schine. Yes. 

The Chairman. Wliere else do you have hotels? 

Mr. Schine. Well, we have one in Northampton. 

The Chairman. Where? 

Mr. Schine. In Northampton, Mass., and in Atlantic City, and 
the west coast. 

The Chairman. What is the hotel in Northampton ? 

Mr. Schine. The Northampton Inn. 

The Chairman. Do you have any bookmaking operations there ? 

Mr. Schine. No, sir. 

The Chairman. How about in Atlantic City? 

Mr. Schine. No, sir. 

The Chairman. What is your hotel there? 

Mr. Schine. The Ritz-Carlton. 

The Chairman. And on the west coast? 

Mr. Schine. The Ambassador. " 



O'RGAjstized orime m interstate commerce 353 

The Chairman. At Los Angeles ? 

Mr. ScHiNE. Yes. 

The Chairman. Do you have bookmaking there ? 

Mr. ScHiNE. No, sir. 

The Chairman. Wliat other hotels do you own? 

Mr. ScHiNE. I think that is all. 

The Chairman. They are all owned by the Schine Theater Co. ? 

Mr. Schine. By the Schine family and the theater company. They 
are not all owned by the Schine Theaters, but by the Schine family. 

The Chairman. Did the hotel business improve during the years 
you had bookmaking; was there more business, more customers? 

Mr. Schine. It was less business when we didn't have it. 

The Chairman. There was more business when you did have it? 

Mr. Schine. Last year in Boca Raton our business dropped con- 
siderably, because we didn't have it. 

The Chairman. Therefore, having bookmakers makes good busi- 
ness for your hotels ? 

Mr. Schine. No. It doesn't make good business. Personally, I 
don't like it. I really resent it, but the guests seem to like it, and in 
Boca Raton they have nothing to do but either play golf or play the 
horses, and if they can't do that they go somewhere else, and that is 
what happened last year in Boca Raton. 

The Chairman. How do you figure the sum of $40,000 ; how do you 
estimate that as being the value ? 

Mr. Schine. Well, we just asked him 50. Then he offered 25, and 
it was gotten together that way. 

The Chairman. And then you figured $20,000 up at Boca Raton ? 

Mr. Schine. Well, we couldn't get any more. 

The Chairman. What did you figure it on, the size of the operation ? 

Mr. Schine. No. It was a question of how many customers they 
could get, presumably. 

The Chairman. How does that $40,000 compare with your annual 
net profit for the operation of the hotel ? 

Mr. Schine. Well, it isn't much at all, comparatively. 

The Chairman. Did that go right into the hotel receipts? 

Mr. Schine. Yes. 

The Chairman. All right, Mr. Schine, that is all for now. Thank 
you, sir. 

TESTIMONY OF C. V. GRIFFIN, HOWEY-IN-THE HILLS, FLA. 

The Chairman. Mr. Griffin, do you solemnly swear that the testi- 
mony you will give this committee will be the whole truth and nothing 
but the truth, so help you God ? 

Mr. Griffin. Yes. 

Mr. Halley. What is your business, Mr. Griffin ? 

Mr. Griffin. Fruit business — citrus. 

Mr. Halley. Where is your business located ? 

Mr. Griffin. Howey-in-the-Hills. 

Mr. Halley. In Florida ? 

Mr. Griffin. Yes. 

Mr. Halley. Mr. Griffin, you know Gov. Fuller Warren, of course ? 

Mr. Griffin. Yes. 



354 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Halley, Did you have anything to do with his campaign for 
Governor ? 

Mr. Griffin. I helped him finance his campaign. 

Mr. Halley. Did you handle his campaign as campaign manager? 

Mr. Grlffin. Well, yes ; to a large extent. 

Mr. Halley. You are largely responsible for its policy? 

Mr. Griffin. For what ? 

Mr. Halley. The policy for rmming the campaign. 

Mr, Griffin. I had a lot to do with it. 

Mr. Halley. Did you personally make a large contribution to that 
campaign ? 

Mr. Griffin. Yes, sir. 

Mr. Halley. How much did you contribute ? 

Mr. Griffin. Approximately $154,000, 1 think. I don't have those 
figures exactly, but I did at one time release them to the press and they 
were correct. 

Mr. Halley. Did you ask any other people to contribute a similar 
amount ? 

Mr. Griffin. Yes, sir. 

Mr. Halley. Would you state to the committee exactly what hap- 
pened in that connection ? 
. Mr. Griffin. I asked Mr. Wolfson and also Mr. Johnston. 

Mr. Halley. Who is Mr. Wolfson; is that Mr. Lou Wolfson? 

Mr. Griffin. Yes. 

Mr. Halley. Mr. Wolfson, who just testified ? 

Mr. Griffin. Yes. 

Mr. Halley. And who is Mr. Johnston? 

Mr. Griffin. Well, he is from Jacksonville. 

Mr. Halley. That is W. H. Johnston ? 

Mr. Griffin. W. H. Johnston. 

Mr. Halley. What did you ask each of them ? What was your con- 
versation ? 

Mr. Griffin. Well, in the beginning — I didn't get in the campaign 
until late, and the Governor asked me to take charge of his campaign, 
and I ask Mr. Johnston and Mr. Wolfson to meet with me at a hotel in 
Jacksonville, and we each contributed, to begin with, $25,000. 

Mr. Halley. How long had you know Mr. Wolfson before then? 

Mr. Griffin. Oh, I don't remember ; some time. 

Mr. Halley. Some years? 

Mr. Griffin. No; not some years. I had known of him for some 
years, but not personally. 

Mr. Halley. Would it be a matter of months ? 

Mr. Griffin. Yes. 

Mr. Halley. Did you know him as long as 6 months at that point? 

Mr. Griffin. I think I knew him that long or longer ; knew of him. 
I wasn't closely acquainted with him. 

Mr. Halley. Had you and Wolfson become fairly good friends by 
that time? 

Mr. Griffin. Yes, 

Mr. Halley. Had you visited each other's home? 

Mr, Griffin. No, sir. 

Mr. Halley. Did you have business transactions together ? 

Mr. Griffin, No; no more than I bought some supplies from his 
place of business in Orlando. 



ORGAXIZED CRIME EST INTERSTATE COMMERCE 355 

Mr. H ALLEY. What made you pick out Wolf son as the man to go to 
and ask for a lar^e sum of money ? 

Mr. Griffin. Well, I just thought he had lots of money. 

Mr. Halley. Did anybody suggest his name to you? 

Mr. Griffin. I don't remember that anyone did. 

Mr. Halley. Did he come to you, by any chance? 

Mr. Griffin. No. 

Mr. Halley. You went to him? 

]\Ir. Griffin. Yes. 

Mv. Halley. And you asked him to share in the campaign expenses? 

Mr. Griffin. Yes. 

Mr. Halley, How did you put it to him? 

Mr. Griffin. I couldn't answer that question. I just don't remem- 
ber now, except I told him that I thought that he and I and Johriston, 
the three of us, could finance the campaign, and he was willing to go 
along. He knew the Governor, and I had known him for a long time. 
So we decided to handle the financing. 

Mv. Halley. You decided to go share and share alike? 

Mr. Griffin. Yes. 

Mr. Halley. How long had you known Johnston ? 

Mr. Griffin. Well, I hadn't known him much longer than I had 
Wolfson, except back in 1940 through some attorney I had known him, 
and I had helped the Governor at that time finance his campaign, and 
he had made a contribution, a small contribution then. I never actually 
met liim at that time. 

Mr. Halley. And you agreed to divide the thing share and share 
alike? 

Mr. Griffin. Yes. 

Mr. Halley. Did you have a joint meeting of the three of you? 

Mr. Griffin. Yes. 

Mr. Halley. At the outset, you each put $25,000 into a fund? 

Mr. Griffin. That's right. 

Mr. Halley. Was anybody appointed to handle the fund ? 

Mr. Griffin. Julian Fant. 

Mr. Halley. Is he a banker ? 

Mr. Griffin. Yes. He was already handling funds, but there wasn't 
any funds up until that time. 

Mr. Halley, Didn't Governor Warren turn some funds over to you 
at the beginning ? 

INIr. Griffin. A small amount ; very small. 

Mi\ Halley. How much was it ? 

Mr. Griffin. Well, if I recollect correctly, it was something like, 
between four and five thousand dollars. It was just three. 

]\Ir. Halley, Was it in cash or check? 

Mr. Griffin. No ; it was in a bank account, 

jNIr. Halley, You took that bank account over? 

Mr. Griffin, Yes. 

Mr. Halley. What was your interest in contributing that large 
sum of money ? 

Mr. Griffin. Well, to begin with, I didn't think that it would run 
into any such figures as it finally ran into, and of course, being inter- 
ested in citrus and being a big property owner in Florida, I had an 
interest there, from the citrus standpoint more than anything else, of 



356 ORGANIZED CRIME IN INTERSTATE COMMERCE 

getting some legislation that would give us a better quality citrus 
industry. - 

Mr. Halley. Did you want a citrus commission established? 

Mr. Griffin. It was already established. 

Mr. Halley. What did you want done wdth the commission ? 

Mr. Griffin. I didn't particularly want anything done with the 
commission. 

Mr. Halley. You didn't want a different type of regulation of 
citrus standards? 

Mr. Griffin. Yes, sir ; I had believed for a long time that it would 
be profitable to the citrus industry to ship more ripe fruit than we 
hacl been shipping, and I was going to promote legislation in an at- 
tempt to accomplish that end — which we did — and put through the 
legislature the citrus code. 

Mr. Halley. After Governor Warren was elected, is that right ? 

Mr. Griffin. Tliat's right. He agreed not to veto it, and to sup- 
port it. 

Mr. Halley. At the start you thought that Johnston was just in 
the dog track business, is that right ? 

Mr. Griffin. That's right. 

Mr. Halley. In Miami and Jacksonville ? 

Mr. Griffin. At that time I didn't even know he was in Miami. 
The only thing I knew about it was that he had a dog track in 
Jacksonville. 

Mr. Halley. As the campaign progressed did you learn that John- 
ston hacl other connections ? 

Mr. Griffin. I heard that ; yes. 

Mr. Halley. What did you hear ? 

Mr. Griffin. I don't remember. 

Mr. Halley. Do you remember talking about it to an investigator 
for this committee ? 

Mr. Griffin. Slightly, yes. 

Mr. Halley. AVell, do you remember telling him that you had 
learned that Johnston was a front for Chicago racketeers ? 

Mr. Griffin. No, sir. 

Mr. Halley. If his memorandum shows that, is it possible that 
that could be true ? 

Mr. Griffin. I never made any statement like that. It was dis- 
cussed and the investigator mentioned that, and I told him he had 
his ideas and probably knew more about it than I did. 

Mr. Halley. Did you. ever find out that Johnston was a front for 
Chicago racketeers? 

Mr. Griffin. No. I never definitely found out. 

Mr. Halley. Did you ever learn that Johnston was head of the 
Sportsman's Park Racetrack? 

Mr. Griffin, I have heard that ; yes. 

Mr. Halley. When did you hear that ? 

Mr. Griffin. Oh, I don't remember just when.- 

Mr. Halley. You have heard that that was a racketeer-controlled 
racetrack, haven't you? 

Mr. Griffin. I have heard it. In fact, it has been in the jjapers allj 
over the country. If you read the papers you couldn't help but see it. 

Mr. Halley. And didn't you learn of that during the progress i 
of the campaign ? 



ORGANIZED CRIME IN INTERSTATE COMMERCE 357 

Mr. Griffin. Not during the progress of the campaign. I was 
too busy. It was probably a few months after the campaign. 

Mr. Halley. Shortly after the campaign? 

]\Ir. Griffin. Yes. 

Mr. Halley. Then yon began to learn about Johnston, is that right ? 

Mv. Griffin. That's right. 

Mr. Halley. And was it at that time that you learned that he was 
a front for Chicago racketeers? 

Mr. Griffin. I never learned that he was a front for Chicago 
racketeers. 

Mr. Halley. You did tell that to our investigator, didn't you? 

Mr. Griffin. No; I didn't tell that to your investigator. 

Mr. Halley. Didn't yon tell Mr. Rice, who is sitting right here, 
that you believed that Johnston was sent to Florida by Chicago 
racketeers ? 

Mr. Griffin. I agreed with him. He suggested it, and, as I said, it 
has been in all the papers, and the Crime Commission of Miami said 
so, and I believe that some of their findings are probably correct, but 
I hadn't gone to the bother of investigating to find out. 

Mr. Halley. Mr. Rice approached you as saying that you thought 
Johnston "didn't own his own soul''; is that right? 

Mr. Griffin. Those statements don't agree with my memory. 
. Mr. Halley. How did you contribute the money that you provided 
for the campaign, in cash or in check? 

Mr. Griffin. By checks. 

Mr. Halley. All of it? 

Mr. Griffin. Yes ; checks, and eventually I had run out of money, 
and Mr. Johnston took my note for $35,000, and Mr. Wolf son took 
my note for $35,000 for my part of the campaign, which I later paid 
off, after it was over. 

Mr. Halley. Johnston contributed all of his money in cash, didn't 
he? 

Mr. Griffin. I don't remember how he contributed his money. 

Mr. Halley. You told that to Mr. Rice, didn't you ? 

Mr. Griffin. No, sir. 

Mr. Halley. Do you have your original memorandum, Mr. Rice? 
•• Mr. Rice. Yes. 

• Mr. Halley. Mr. Griffin, do you recall, on May 31, 1950, meeting 
Mr. Rice at 3'our home at Howey in the Hills? You do recall that, do 
you not? 

Mr. Griffin. That's right. 

Mr. Halley. Do you recall talking to him? 

Mr. Griffin. Yes, sir. 

Mr. Halley. And do you recall that shortly before that you had 
given some information to the Florida newspapers? 

Mr. Griffin. Yes, sir. 

Mr. Halley. AVhat had you told the Florida newspapers? You 
made a statement to the papers, didn't you? 

Mr. Griffin. I made a statement. I don't want to add or subtract 
anything that I said. If I at any time said anything about Mr. 
Johnston, I don't remember. 

Mr. Halley. Can you remember what you told the press now ? 

Mr. Griffin. I can't remember what I told the press 6 months ago. 

Mr. Halley, In substance what did you say ? 



358 ORGANIZED CRIME IN INTERSTATE COMMERCE 

Mr. Griffin. In substance I was asking the Governor to enforce the 
gambling hiws and keep his oath of office, and I still feel the same way. 

Mr. H ALLEY. Did you believe that he was not enforcing the gam- 
bling laws at that time ? 

Mr. Griffin. I didn't see where they were being enforced, and I 
asked him many, many times to enforce them. 

Mr. Halley. In fact, right after he was elected you caused yourself 
to be named special investigator, did you not? 

Mr. Griffin. No. It was several months after he was elected. 

Mr. Halley. How long after ? 

Mr. Griffin. I don't recall just exactly now, 

Mr. Halley. Was it early in 1949 ? 

Mr. Griffin. I would say, offhand, it was in the middle of 1949. I 
would have to look it up to verify that date. He did appoint me as 
chief investigator. 

Mr. Halley. How long did you serve as chief investigator? 

Mr. Griffin. Until he fired me. 

Mr. Halley. Until when? 

Mr. Griffin. Until I was fired. 

Mr. Halley. Who fired you ? 

Mr. Griffin. The Governor. 

Mr. Halley, How did that happen? 

Mr, Griffin, Apparently he didn't agree with my way of thinking. 

Mr, Halley, What was your way of thinking; did you have any 
discussions with Governor Warren? 

Mr. Griffin. Several; yes. 

Mr. Haley. Would you state what they were ? 

Mr. Griffin. Well, I mostly referred to the findings of the Crime 
Commission here in Miami, and that the situation didn't look right, 
and I asked him to do something about it. 

Mr. Halley. You had been appointed chief investigator ? Did you 
try to do anything about it? 

Mr. Griffin. I told him I was going to. 

Mr. Halley, Were you permitted to investigate as you saw fit ? 

Mr. Griffin. I was permitted, but nothing that I recall was ever 
accomplished ; nothing ever done, 

Mr. Halley, Did you come down to Miami and begin to investigate? 

Mr. Griffin. I didn't have to come to Miami. Lots of people 
would come to me, and they told me about different conditions, and 
that is how I found out what I foun