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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
(')
5
{')
5
(')
5
{')
5
(')
7
(0
7
(0
8
(')
8
(0
8
(•)
8
{')
8
(')
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
20
20
20
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
21
22
22
22
22
60
60
60
90
90
90
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
96
96
96
96
97
98
99
99
99
100
100
101
102
102
103
103
103
103
103
104
104
104
105
105
105
105
105
106
106
107
107
107
107
107
108
108
108
108
108
108
108
109
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
at page —
109
109
109
109
109
110
110
110
110
117
118
118
119
119
120
140
147
154
154
154
157
{')
(=)
{')
(')
{')
(.')
732
733
733
734
734
734
735-740
740
741
740
742
(')
160
743-745
161
746-747
161
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
253
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,e 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 found out.
Mr. Halley. What did people tell you ?
Mr. Griffin. Well, about gambling conditions and just about
various things.
Mr. Halley. Did they tell you that the law was not being enforced
in Miami?
Mr. Griffin, Yes.
Mr. Halley. Did they make charges about the law-enforcement
authorities?
Mr. Griffin. They made charges about authorities in Miami and
various other places.
Mr. Halley. Did you tell all of that to the Governor?
Mr. (iRiFFiN. I had several discussions with him about it.
Mr. Halley. And then you resigned?
Mr, Griffin. I didn't resign. He fired me.
ORGANIZED ORIAIE IX INTERSTATE COMMERCE 359
Mr. Halley. For what reason did he fire you?
Mr. Gkiffin. I imaoine he had a oood reason to fire me. 1 donx
know what his reason was. He never gave me any reason. He an-
nounced my appointment, and the next day I was fired ; so, that is all 1
can say about that.
Mr. Halley. You mean you served for only 1 day?
Mr. Griffin. No. I had been chief investigator for several months,
but I hadn't exercised any of my authority, and I don't think that
anybody knew that he had appointed me chief investigator, because I
had a citrus business to look after and I didn't particularly want to
be identified as an investigator unless it became necessary.
Mr. Halley. As an investigator what did you investigate?
Mr, (tkiffix. What did I investigate?
Mr. Halley. What did you do about investigating?
Mr. Griffin. I was getting ready to do something, but I didn't get
the opportunity.
Mr. Halley. What did you need in order to have the opportunity ?
Did you ask for any authority?
Mr. Griffin. He had given me the authority.
INIr. Halley. Did you need funds?
Mr. Griffin. Well, I volunteered to do it without funds. I felt
like I had made quite a contribution to thd campaign, and I just
believed in better government than it looked like we were getting, so,
after discussing these things with him several times, I told him to
announce my appointment as chief investigator ; so, the announcement
came out. It apparently was all right until a day or two later; then
he fired me.
Mr. Halley. Do you think that somebody objected to your being
named chief investigator?
Mr. Griffin, I imagine somebody did,
Mr. Halley. Have you any idea about who it might have been ?
Mr. Griffin. I have my ideas.
Mr. Halley. Bill Johnston?
Mr, Griffin. Well. I wouldn't want to say it was Bill Johnston,
It might have been Bill Johnston,
Mr. Halley. Didn't you tell that to Downey Rice ?
Mr. Griffin. I made a statement that Bill Johnston was in Talla-
hassee the day that I got fired. That is as much as I told Mr. Rice,
Mr. Halley. Do you think that Bill Johnston went to Tallahassee
to see the Governor?
Mr. Griffin, It's possible that he did.
Mr. Halley. And the next thing that happened was that you got
fired?
Mr. Griffin. That's right. I got fired.
Mr. Halley. Can you state any reason why Bill Johnston would not
have wanted you to investigate gambling in Florida?
Mr. Griffin. Well, I suppose that there are plenty of reasons. I
don't suppose I can state any of them. I probably wanted some of
the law-enforcement officers to enforce the law; that would have been
3iiy intention.
^Ir. Halley. Did you ever talk about it with Johnston ?
Mr. (triffin. No ; I can't say that I ever did.
Mr. Halley. Did you know this investigator that they call "Bing"
Crosby ?
68958 — 50 — pt. 1 24
360 ORGANIZED CRIME EST INTERSTATE COMMERCE
Mr. Griffin. Yes, sir.
Mr. Halley. Did he work for you ?
Mr. Griffin. No.
Mr. Hallet. Or under your direction ?
Mr. Griffin. No, sir.
Mr. Halley. Did you know that he had come to Miami to make an
investigation ?
Mr. Griffin. I had been told that; yes.
Mr. Halley. Who told you that ?
Mr. Griffin. Oh, various ]:)eople. I don't remember who.
Mr. Halley. Did you know whether he had made one?
Mr. Griffin. Whether Crosby had made an investigation? I had
heard that he had been down there.
Mr. Halley. Did he come back to Tallahassee or to Jacksonville
with any findings?
Mr. Griffin. I don't know,
Mr. Halley. Did you ever discuss Crosby's investigations with
Johnston ?
Mr. Griffin. No.
Mr. Halley. Or with Kush ? Do you know Mr. Eush ?
Mr. Griffin. Yes ; I do know Mr. Rush.
Mr. Halley. Did you ever discuss Crosby's investigations with
Rush?
Mr. Griffin. No.
Mr. Halley. Crosby was fired too, was he not, or at least called off
the investigation ?
Mr. Griffin. That I don't remember.
Mr. Halley. You don't remember?
Mr. Griffin. It seems to me like he was called in to Tallahassee,
but I don't recall.
Mr. Halley. Well, he came to Miami and started investigating; is
that right ?
Mr. Griffin. He had been investigating.
Mr. Halley. And then he was called to Tallahassee? Is that
right?
Mr. Griffin. I believe he was.
Mr. Halley. Did he do any more investigating in the Miami area
after that?
Mr. Griffin. Well, it's my opinion that he is still investigating. I
suppose he is still investigating.
Mr. Halley. Is he actively investigating?
Mr. Grifftn. I couldn't answer that. I don't know.
Mr. Halley. You were investigator for some months, but you didn't
do anything ; is that right ?
Mr. Griffin. I didn't do anything; no. Nobody at that time knew
that I was an investigator.
Mr. Halley. Now, you have mentioned $154,000 that was put into
the campaign. Did you put your own money in ?
Mr. Griffin. I put my money and my partner's, who is in business
with me; the two of us contributed.
Mr. Halley. Did you get any money from auy other person?
Mr. Griffin. No.
Mr-. Halley. Do 3^ou know whether Johnston got money from any
other person?
ORGANIZED CRIME IK INTERSTATE COMMERCE 361
Mr. Griffin. I don't know where Johnston's money came from.
Mr. Halley. It was all cash ?
Mr. Griffin. I can't say it was all cash.
Mr. Halley. Did he have any books, do yon know ?
Mr. Griffin. If he did, I didn't see them.
Mr. Halley. As a matter of fact, didn't you tell Mr. Downey Rice
that Mr. Johnston kept his book in his hip pocket?
Mr. Griffin. I never saw any books, if he had any.
Mr. Halley. You also mentioned that you didn't know that he had
any office, that he just had a home in Jacksonville?
Mr. Griffin. I don't know yet whether he has an office or not.
The only time I ever saw Johnston was when we needed to put up
some money, and we would agree on the amounts, and the money was
given to the treasurer, and he handled the disbursing of most of the
funds until the end of the campaign, which ran out of money, and
Mr. Wolf son and Mr. Johnston just paid the bills. I think it was a
large sum of money and that it didn't go through the campaign head-
quarters. I gave him my notes for my one-third.
Mr. Halley. Where did Johnston bank, do you know ?
Mr. Griffin. I don't know.
Mr. Halley. Was it the Continental Bank in Chicago?
Mr. Griffin. I don't know.
Mr. Halley. You don't know ?
Mr. Griffin. I think it was Jacksonville.
Mr. Halley. In Jacksonville ?
Mr. Griffin. My bank is the Continental Bank in Chicago.
Mr. Halley. Your bank ?
]\Ir. Griffin. He might have banked there. I don't know wdiere he
banked.
Mr. Halley. Did you ever get any checks from him on the Conti-
nental Bank?
Mr. Griffin. One time he gave me a cheek, and I didn't get the
amount and I don't remember the bank, but I feel certain that the
man that handled the financing can still give you that.
Mr. Halley. But didn't you tell Mr. Downey Rice that he banked
in the Continental Bank in Chicago?
Mr. Griffin. No, sir.
Mr. Halley. Does Mr. Rice remember you as having said that he
was mistaken?
Mr. Griffin. I don't even remember the Continental Bank. It
might be that I got a check on the Continental Bank at one time. He
gave me a check one time.
Mr. Halley. But you told Mr. Rice, did you not, that Johnston
told you that his bank was the Continental Bank iii Chicago ?
Mr. Griffin. Well, I think I have heard him mention that he did
business with the Continental Bank. I think it was also the Atlantic
Bank in. Jacksonville, but I wouldn't want to make that as a statement.
Mr. Halley. Didn't you also tell Mr. Rice, as the situation pro-
gressed, that tlie thing became apparent to you that Johnston's motive
for contributing to the campaign was to insure protection of gambling
enterprises in Florida ?
Mr. Griffin. I don't remember making any statement substantially
like that. The discussion did come up about the functioning of — it had
362 ORGANIZED CRIME IN INTERSTATE COMMERCE
been in tlie papers. Mr. Rice knew what Mr. Johnston's business was
and I never said "Yes'' or "No."
]\Ir. Halley. Did Mr. Rice put all these things in the memorandum
that he wrote ? Would he be mistaken i
Mr. Griffin. It could be he didn't make any memorandum when
he was there with me.
Mr. Halley. Well, if he wrote one shortly after he left you and
put all these things down, would he be mistaken ?
Mr. Griffin. I wouldn't say he would be mistaken about any of
them but I am certain that what
Mr. Halley. Did Mr. Rice take some notes right in your presence?
]Mr, Griffin. No. When I saw him he was there about 3 hours.
Mr. Halley. Didn't he make the notes while you talked?
Mr. Griffin. I don't remember him making any notes.
Mr. Halley. What was your motive for making the contributions?
Mr. Griffin. My motive? I liked Fuller Warren. I know him
since college. I am in the citrus business and own and operate and
control several thousand acres of citrus. I wanted to see better govern-
ment and I thought I was going to get it.
Mr. Halley. You also wanted to get your partner on the citrus
commission, didn't you?
Mr. Griffin. Naturally I would like to get him in. Naturally I
would want my associate as chairman, which he was.
Mr. Halley. He was your business partner ?
Mr. Griffin. Yes.
Mr. Halley. And he went on the commission as chairman; is that
right ?
Mr. Griffin. I worked on the commission as chairman.
Mr. Halley. And you got appointed through the committee as a
special investigator?
Mr. Griffin. I got my appointment as chief investigator before I
got on. I don't remember the dates, but it was sometime along about
the same time.
Mr. Haixey. Between the time you were appointed and the time
you were fired, did you make any trips at all to Miami or Miami Beach ?
Mr. Griffin. Not as an investigator.
Mr. Halley. I didn't ask you that. Did you make any trips as
investigator ?
Mr. Griffin. Yes ; I was in Miami.
Mr. Halley. How often ?
Mr. Griffin. I think twice.
Mr. Halley. Where did you stay when you came to Miami?
Mr. Griffin. At the McAllister.
Mr. Halley. McAllister Hotel ?
* Mr. Griffin. Yes.
Mr. Halley. And did you have any discussions with any people in
Miami ?
Mr. Griffin. Some people discussed some things with me while I
was down here.
Ml'. Halley. Did you discuss the gambling situation with anybody?
Mr. Griffin. Not any more than I had to. A lot of people wanted
to discuss it and I couldn't help but discuss it.
Mr. Halley. With whom did you discuss it, the gambling situation?
ORGANIZED CRIME IN INTERSTATE COMMERCE 363
Mr. Griffin. I don't just remember. There were so many of them
that discussed it or tried to that I just can't recall. _ ■
Mr. Halley. Do you recall calling on the commissioners?
Mr. Griffin. No.
Mr. Halley. Did you call on the sheriff ?
Mr. Griffin. No.
Mr. Halley. Or the chief of police?
Mr. Griffin. No.
Mr. Halley. You made no attempt to investigate at all ?
JNIr. Griffin. I didn't make any attempt. I heard lots about it from
lots of people, but I wasn't investigating.
Mr. Halley. Did you talk to Jolmston about it ?
jNIr. Griffin. You couldn't get on the street without hearing about
it, or getting in a taxicab.
]Mr. Halley. Well, you were getting a lot of street talk, but did you
try to get facts?
Mr. Griffin. I got what seemed to me to be substantially the truth
of what was happening.
Mr. Halley. In those months who did you go to in your official
capacity to attempt to 
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