5) The Italian voting bloc now controls some of the largest cities in

the country. It is the largest single unit in New York, where all three candidates for mayor in 1950 were Italians. Too many of their men in office have ties to the Mafia. They can count on the votes of their countrymen in nominations and elections. The mass votes of Italians are bartered back and forth and usually can be delivered, by Black Hand threats in Italian neighborhoods, by appeal to blood relationship and national pride, or through the pages of powerful Italian language newspapers.

During his recent campaign, New York’s Mayor Impellitteri charged that Gene Pope, publisher of Il Progresso Italiano-Americano, the biggest Italian daily in the country, was an intimate of Frank Costello. We have seen them dining together on intimate terms.

No book could comprehensively cover the mob’s facets in Washington, but here are a few, at random:

The President’s military aide and poker pal, Major General Harry Vaughan, has associated with Frank Costello. They were brought together through his stooge, the convict John Maragon, who was a pal of the late Bill Helis, Greek millionaire and partner in Costello’s New York and Louisiana enterprises—as well as in a Scotch distillery.

Joe Adonis, New York mobster and lieutenant of Costello, had financial dealings with Harold F. Ambrose, former special assistant to the Postmaster General. Ambrose pleaded guilty to charges of operating a $600,000 fraudulent stamp-selling scheme. Adonis was questioned by the D.C. grand jury, but refused to talk, after which the United States had amnesia about his connection with the case. Ambrose is related to Democratic Senator O’Mahoney. His failure to go to trial protected his underworld associates.

Attorney General McGrath, who may be a U.S. Supreme Court Justice before this appears in print, was a Senator from Rhode Island and an important member of Rhode Island’s Democratic machine. That outfit has tight ties with the underworld. Within days after McGrath was pushed upstairs to the Attorney Generalship, to make way for Bill Boyle as Democratic National Chairman, McGrath made a trip to New York City. There he or his double had dinner at the Copacabana night club with Joe Nunan, former Commissioner of Internal Revenue, and Julie Podell, manager of the cafe. It has been frequently charged in New York that Costello has an interest in the corporation. The late Mayor La Guardia ordered police to cancel the club’s license if Podell, long an associate of Costello, was ever found on its premises again. Podell, while giddy, told one of your reporters that Costello had advanced $50,000 to open the club.

At the time of the dinner party there, the Copa was a possible defendant in a tax-action growing out of an investigation into the charges that it was owned by Costello. Since then, Podell was in Hot Springs with Costello and several other mobsters from all parts of the country, in an annual convention. McGrath has since stated there is no organized crime or vice in the country.

Former Attorney General Tom Clark, now a Justice of the United States Supreme Court, was closely associated with attorneys who represented underworld figures. There were no major underworld prosecutions during his term of office. A Congressional investigation elicited the startling information that Clark’s boyhood pal, Maury Hughes, a Dallas attorney, was retained by five members of the old Capone mob, who had been convicted of extorting millions from the movie industry, to induce the federal authorities to nol-pros outstanding indictments against them and secure premature paroles.

Hughes, with other lawyers close to the administration, worked this feat of legal legerdemain. While these pages were being written, the same Maury Hughes secretly succeeded in keeping Alan Smiley, a notorious West Coast gangster who had been ordered deported, in the country. Smiley was Bugsy Siegel’s buddy, and was seated next to him on a love-seat in Virginia Hill’s Beverly Hills mansion when Siegel was ambushed and assassinated, in the only spot in the room visible to the torpedoes hidden outside, in bushes.

Until recently, Smiley had been passing himself off as an oil broker and real estate man in Houston, Texas, where he lived with his wife, a former movie starlet, in Glen McCarthy’s swank Shamrock Hotel. Smiley took up with a Texas oilman, Lenoire Josey, who liked to gamble. Smiley said he liked that, too. He knew some good places.

He and Josey went to Sam Maceo’s ornate casino, the Balinese Room, in Galveston. Then they went to the Mounds Club, in Cleveland. After that they went to the Flamingo, in Las Vegas. A trip to Phil Kastel’s (and Costello’s) beautiful Beverly, outside New Orleans, followed. When Josey counted up he had lost $500,000. Smiley “admitted to being a big loser, too.” If so, he got some back, because he owns a bit of stock in the Flamingo.

While these lines were being written, the California Crime Commission, headed by Admiral William H. Standley, Retired, castigated government aides for their ties with criminals. He said the relationship between the underworld elements and certain officials “must of necessity make it embarrassing for Federal officials to undertake prosecutions.”

A specific example was Sam Termini, described as a godson of the late Charlie Binaggio, who would have had to earn $900,000 income last year to be able to afford the cash payments made on his mansion in San Mateo County. He paid income tax on no such sum.

It cited the case of Dorothy A. McCreedy as a specific example of tieups between criminals and government officials, stating:

“The McCreedy woman is a convicted madame, a major figure in the prostitution racket in California for years and operator of two large whore-houses in Honolulu.”

She was reported to the Income Tax Bureau as a suspected evader, but “she is also a partner in a business called Safety Step Sales Co., and one of her partners is Ernest M. Schino, chief field deputy in the Office of the Collector of Internal Revenue.”

They tell a spicy story about Dorothy, whom we know well—personally, not professionally. When F. D. Roosevelt made his first trip to Hawaii, the Secret Service failed to send ahead a black open touring-car of expensive make, familiar and standard for the President on open display. Honolulu was winnowed. Only one such car was found in the Territory. It was owned by Dorothy, who used to drive her gals through town, to show them off, for promotion.

Dorothy pridefully lent the car. Everyone in Honolulu recognized it on sight, but the President didn’t know that. He flashed his historic grin, waved his hat, but couldn’t understand why the cheers were accompanied by an obbligato of guffaws.

It was charged, and never refuted in the 1950 campaign, by both Governor Dewey and Mayor Impellitteri that Ed Flynn, New York political boss and intimate of the late President Roosevelt, is Frank Costello’s contact in New York State. Flynn, who has, and retained after the debacle, the national patronage in the state, used it frequently to procure appointments in high places, including the federal district bench, the New York State Supreme Court and some prosecutors, of men known to be friendly to associates of Costello. His defeated choice for governor of New York, former Congressman Walter J. Lynch, of the Bronx, had, while he was in Congress, introduced a “sleeper” which would have permitted the underworld kings, notorious for such frauds, to evade prison sentences for tax delinquency.

A report, in the possession of the Los Angeles Police Department, which we have seen, states that Flynn or someone who looked remarkably like him—with Frank Costello, Phil Kastel and others—was in Mexico City in December, 1948. Costello was in conferences that contemplated taking over the Mexican National Lottery. The group was partied by A. C. Blumenthal, expatriate New York showman.

Lynch, like his boss Ed Flynn, was a never-deviating New Deal-Fair Deal Democrat. He never voted against an administration measure. In the last Congress there was a mighty affinity between New Dealers and crooked dealers. For instance, former Senator Lucas, of Illinois, the majority leader, was beholden to the Nash-Kelly-Arvey machine. Appointments of shady figures to federal positions in Illinois cleared through him, the senior Senator, as all must.

Left-wing Democratic Senator Hubert Humphrey, of Minnesota, is a pal of ex-convict Charles Ward, millionaire calendar printer. Ward has many ties with the underworld all over the country, and was one of the financial backers of Anna Roosevelt’s attempt to start a daily newspaper in Phoenix, Arizona. This was once he was outsmarted in a money deal. As is not unknown in the Roosevelt tradition, he got one cent on the dollar back. Bill O’Dwyer said he found a direct tie between Ward and Brooklyn’s Murder, Inc.

Under such auspices, the underworld is establishing a firm grip on Minnesota. Its attempt to take over the Minneapolis and St. Paul traction systems is a part of the general picture across the land and was exposed by Lait last summer in his Daily Mirror column. It resulted in the indictment of one of the mobsters, Kid Cann, so called because of his many incarcerations.

The New Dealers have been kind to the underworld ever since their victorious election in 1932, after Costello and Jimmy Hines, with Ed Kelly, had successfully managed the convention fight in Chicago. While Frank Murphy was Attorney-General he saw to it that prosecuting attorneys laid off the boys. Internal Revenue agents prepared a tax case against Costello and Frank Erickson, but the U.S. Attorney was ordered to pigeonhole it.

Following Frank Erickson’s conviction in New York on gambling charges, District Attorney’s investigators seized his books and papers. Among them was a memo reading, “Phone Daddy Long Legs.”

The sleuths jumped on this. They figured it was a code or nickname for one of the mob aces. That is one of the toughest problems encountered by racket-busters, i.e., breaking down the aliases used by the kings of the underworld on their books and in their records.

The gumshoes rushed over to the Island and interviewed Erickson in his cell.

“Who is Daddy Long Legs?” they asked. “And what did you want to call him for?”

Erickson laughed uproariously. “Why shouldn’t I phone him?” he inquired. “After all, I’m related to him by marriage and he’s the Vice President.”

After the investigators had recovered from their shocks, this is what Erickson told them:

“An in-law of mine is an in-law of Barkley’s. Barkley visited me in my Long Island home. My grand-kids are crazy about him. They nicknamed him ‘Daddy Long Legs.’”

The story of the Binaggio killing in Kansas City, anticipated in Chicago Confidential, is recent, but the full background of the case has never been aired before.

President Truman is and was a loyal member of his county Democratic organization. And as such—a party man who never split his ticket—he was forced to go along, though unwillingly, when the Chicago hoodlums put Binaggio in as the leader.

When the President first went into politics, the Mafia was just one of the mobs. It had not organized the country. In the 1920s, most of the big city machines were owned by Irish bosses, who were tied up with the local Irish underworld gangs. Each city was independent of all other cities.

On the surface, the conviction of Tom Pendergast by U.S. Attorney Maurice Milligan was a smashing victory for law and order. But it was, at the same time, a greater victory for the Capone and Costello mob. There are high government cops—not friends of the administration, either—who have the wild idea that the only effect of Pendergast’s conviction was to permit Charley Fischetti’s ambassador to Kansas City, Tony Gizzo, to put in his own man, Binaggio, as county leader. Milligan’s brother Tuck was counsel for Joe de Luca, a Mafia boss and convicted dope smuggler, during and after his brother’s term as United States attorney. Milligan prosecuted few Sicilian hoodlums. T-men demanded 20 years for De Luca. Milligan’s office asked for only 3 for his brother’s client; he was sprung shortly thereafter and the stool pigeon who convicted him was murdered. We looked up the official record and that is so.

As new Democratic leader of the President’s home county, Binaggio had great influence. Naturally, the President wanted to carry his own state in local and federal elections, so he had to work through his home organization. The presence in it of people like Binaggio and Gizzo may have turned his stomach, but that was politics.

We have explained that the Big Mob does not operate directly in Washington on the street and sewer levels, such enterprises being franchised out to locals. The Syndicate does do business in the District in connection with its legitimate affairs and some of its larger sub-rosa undertakings. In the latter category are black-marketing, the sale and resale of government surplus, padding of war contracts, etc. The boys had an office in the Thomas Circle Building during World War II, in which they dished out war contracts. One day a man was killed there, but so great was their influence that no record was made on the police blotter. The newspapers still know nothing about it.

A couple of hotels in Washington are owned by interests known to be backed by underworld coin. Many chain stores owned by mob money have branches there. Money of “Lepke” Buchalter, executed head of Murder, Inc., is in Jarwood’s men’s clothing store, across the street from the Department of Justice. The history of this chain makes a human interest story.

When Lepke surrendered, to be turned over to J. Edgar Hoover, he understood the boys put in a “fix” so he would be tried on federal charges and not turned over to Brooklyn’s crusading District Attorney, Bill O’Dwyer, on the Murder, Inc., rap, which meant the chair in Sing Sing.

But Hoover would have nothing to do with such a deal, and gave him up to New York State. Lepke was convicted of first-degree murder. He knew he had been railroaded by the Mafia, which had wanted to get rid of its Jewish partner. He threatened to blow the whistle, and was promised leniency if he would talk. His wife, an attractive brunette, went to see him in his cell and told him her life had been threatened, she would be croaked if he spilled. That was not so. Lepke loved her, so he went to the hot seat with his lips sealed to protect her.

Most of his illegal profits had been stashed away in secret safe deposit vaults. He told her where they were. While Lepke was in the death-chamber, his wife was often seen with Arthur Jawitz, a slick-looking young guy, who had attracted the attention of the Feds when they were looking for Lepke, whose bed he was keeping warm.

Shortly after Lepke’s electrocution, his widow married the black-haired young man, and set him up in the men’s clothing business. They changed their name to Jarwood. The underworld says Lepke left her $20,000,000 in U.S. currency. A former wife of Jawitz showed up, charged he had married Betty Buchalter bigamously. She said Betty was “keeping” Jawitz while her gangster husband was still alive.

After the Kefauver Committee quizzed Lou Wolfson, head of the Capital Transit Company, which owns the street-cars and buses in Washington, seeking gangster-ties, it went no further. There was no evidence. Wolfson, who lives in Jacksonville, Florida, says he is a legitimate businessman. We have no knowledge to the contrary. But it was developed under oath at a Senatorial hearing that Wolfson and one William B. Johnston had, between them, raised a fund of half-a-million dollars for the campaign of Florida’s governor, Fuller Warren. Wolfson and Johnston each put $154,000 into this private, special campaign kitty, and were intimately associated during the campaign. Johnston is president of Sportsman’s Park racetrack in Chicago, and several dog-tracks in Florida, which were owned by the late Al Capone. Johnston makes frequent payments to Capone associates as “loans.” He admitted he had been associated with mob-owned enterprises.

Another witness, Leo J. Carroll, testified that it was general knowledge in 1948, that with the election of Governor Warren, one-third of whose campaign Wolfson financed, “the Mob would take over Florida.” It did.

A few months after Wolfson secured control of the Washington transit system, he was permitted to raise the fare to 15 cents a ride, on the plea of extreme poverty. Right after that, the company doubled its quarterly dividends from 50 cents to $1 a share. Company stock scored a sensational advance, reaching $39. When Wolfson landed control he bought 109,000 shares at $20.

Wolfson’s campaign to buy the local transit system was authorized by the ICC and the Securities Exchange after an adverse recommendation of the examiner and over opposition of minority stockholders. In less than ten months, the Wolfson group succeeded in dominating the board of directors and placing its own men in strategic executive spots, one of whom is Frank E. Weakly, president of the Wardman Park Hotel.

Now the SEC has granted Wolfson permission to sell some of his stock at the inflated price, which gives him the company and his money back. At this writing, he is negotiating to buy the Washington Redskins from George Marshall.

You can feel the presence of the mob in Washington. You can see evidence in many directions that it is there. John L. Laskey, immediate past president of the District Bar Association, resigned the chairmanship of its law enforcement committee because he had represented three witnesses called before the Senate Crime Investigating Committee in connection with Florida gambling. He was a former U.S. attorney.

When Frank Costello testified briefly last year before the Senate Interstate Commerce Committee investigating the transportation of slot-machines across state lines, the photo of a Senate attache calling a cab for him while Capitol policemen pushed nosy spectators away, was widely published. But what hasn’t been printed is that a table was reserved for him in advance in the Senators’ private dining-room in the Capitol, and while the great Costello dined with his staff of lawyers, a couple of U.S. Senators humbly waited for seats. The Senate dining-room is operated on a concession basis by the son-in-law of a Chicago vending-machine manufacturer.

It could be some of the Senators are on Costello’s payroll. The law firms of at least 40 Senators and Congressmen regularly represent the wire service and local gamblers in their home towns.

Now let’s gander the Kefauver Committee.