In 1981, an FBI team visited Donald Trump to discuss his plans for a casino in Atlantic City. Trump admitted to having ‘read in the press’ and ‘heard from acquaintances’ that the Mob ran Atlantic City. At the time, Trump’s acquaintances included his lawyer Roy Cohn, whose other clients included those charming New York businessmen Antony ‘Fat Tony’ Salerno and Paul ‘Big Paul’ Castellano.
‘I’ve known some tough cookies over the years,’ Trump boasted in 2016. ‘I’ve known the people that make the politicians you and I deal with every day look like little babies.’ No one minded too much. Organised crime is a tapeworm in the gut of American commerce, lodged since Prohibition. The Volstead Act of January 1920 raised the cost of a barrel of beer from $3.50 to $55. By 1927, the profits from organised crime were $500 million in Chicago alone. The production, distribution and retailing of alcohol was worth $200 million. Gambling brought in $167 million. Another $133 million came from labour racketeering, extortion and brothel-keeping.
In 1920, Chicago’s underworld was divided between a South Side gang, led by the Italian immigrant ‘Big Jim’ Colesino, and the Irish and Jewish gangs on the North Side. Like many hands-on managers, Big Jim had trouble delegating, even when it came to minor tasks such as beating up nosy journalists. When the North Side gang moved into bootlegging, Colesino’s nephew John Torrio suggested that the South Side gang compete for a share of the profits. Colesino, fearing a turf war, refused. So Torrio murdered his uncle and started bootlegging.
Torrio was a multi-ethnic employer. Americans consider this a virtue, even among murderers. The Italian ‘Roxy’ Vanilli and the Irishman ‘Chicken Harry’ Cullet rubbed along just fine with ‘Jew Kid’ Grabiner and Mike ‘The Greek’ Potson — until someone said hello to someone’s else’s little friend.
Torrio persuaded the North Side leader Dean O’Banion to agree to a ‘master plan’ for dividing Chicago. The peace held for four years. While Torrio opened an Italian restaurant featuring an operatic trio, ‘refined cabaret’ and ‘1,000,000 yards of spaghetti’, O’Banion bought some Thompson submachine guns. A racketeering cartel could not be run like a railroad cartel. There was no transparency among tax-dodgers, no trust between thieves, and no ‘enforcement device’ other than enforcement.
In May 1924, O’Banion framed Torrio for a murder and set him up for a brewery raid. In November 1924, Torrio’s gunmen killed O’Banion as he was clipping chrysanthemums in his flower shop. Two months later, the North Side gang ambushed Torrio outside his apartment and clipped him five times at close range.
Torrio survived, but he took the hint and retreated to Italy. His protégé Alphonse ‘Scarface’ Capone took over the Chicago Outfit. The euphemists of Silicon Valley would call Al Capone a serial disrupter who liked breaking things. By the end of Prohibition in 1933, there had been more than 700 Mob killings in Chicago alone.
On St Valentine’s Day 1929, Capone’s men machine-gunned seven North Siders in a parking garage. This negotiation established the Chicago Outfit’s supremacy in Chicago, and cleared the way for another Torrio scheme. In May 1929, Torrio invited the top Italian, Jewish and Irish gangsters to a hotel in Atlantic City and suggested they form a national ‘Syndicate’. The rest is violence.
Is crime just another American business, a career move for entrepreneurial immigrants in a hurry? John J. Binder teaches business at the University of Illinois in Chicago, and has a sideline in the Mob history racket. He knows where the bodies are buried, and by whom. We need no longer err by confusing North Side lieutenant Earl ‘Hymie’ Weiss, who shot his own brother in the chest, with the North Side ‘mad hatter’ Louis ‘Diamond Jack’ Allerie, who was shot in the back by his own brother; or with the bootlegger George Druggan who, shot in the back, told the police that it was a self-inflicted wound. Anyone who still mixes them up deserves a punishment beating from the American Historical Association.
Binder does his own spadework, too. Digging into Chicago’s police archives, folklore, and concrete foundations, he establishes that Chicago’s mobsters pioneered the drive-by shooting. As the unfortunate Willie Dickman discovered on 3 September 1925, they were also the first to use a Thompson submachine gun for a ‘gangland hit’. Yet the Scarface image of the Thompson-touting mobster was a fiction. Bootleggers preferred the shotgun and assassins the pistol. Thompsons were used ‘sparingly’, like a niblick in golf.
Al Capone’s Beer Wars is a well-researched source book. Readers who never learnt to read nothing because they was schooled on the mean streets will appreciate Binder’s data graphs and mugshots. Not too shabby for a wise guy.