As early as 1932 the press reported that Rocco, Andrew, and Nick De Grazia were in control of slot machines for the syndicate in the western suburbs. Yes. Mr. PETERSON. Is your testimony going to apply to gangs, as you say, attempting to take over local government? I mean the one before that, the tourists' association. Aiuppa and two others were arrested for operating a handbook in the Post Time Tavern, 4824 Cermak Road, Cicero. Senator WILEY. The Chicago Daily News on April 30, 1929, stated, reporting the testimony: Three witnesses supplied the testimony regarding the machine-gun deal through the Cicero police with the Capone dog track, which was owned by John Patton, boy mayor of Burnham, and Jack Guzik, business manager for Capone. It is stated that Ricca came to this country about 1920 and that his name in Italy was Magleo or Maglio. These boxes were in Chicago - except in the first ward, where the Century has the monopoly - Cicero, Argo, Calumet City, in Illinois, Hammond, Indiana Harbor, and Whiting. I don't know whether the "A" stands for Arnold or not. Mr. Peterson also explained that there are some names in the statement that he has there that he would not want to make public, but will give the committee privately. At their meeting last year where you made a report, I believe it was, in Cleveland, Ohio. Nitti was attracted to Ricca, so the story goes, because of his intelligence and induced him to work at the Lexington Hotel which was a Capone gang headquarters, as a confidential aid to Nitti. Tony (Big Tuna) Accardo, reputedly the longtime head of the Chicago mob and a former associate of gangster Al Capone, died Wednesday night. On June 26, 1931, Lawrence Imburgio was arrested in a roadhouse near Wheaton, Ill. in company of Claude Maddox, Tony Capezio, Rocco De Grazio, and Doc Stacey. Mr. HALLEY. They began operations in Louisiana in 1934, and it is claimed that the first year of their activities there netted them about $800,000. The Chicago Crime Commission credited Accardos long life to his insistence that the Chicago mob should stay away from drug trafficking which exerted a corrupting influence on many other criminal organizations. The committee should know that that Mr. Peterson made every effort to have a copy of his statement that could be made public in the committee's hands by yesterday, so it could be mimeographed, but he found that the pressure of work was such that he just could not do it. Needless to say, Accardo bought the house for a very nice price. Shortly after the shooting, Accardo was seen in the lobby of Capones headquarters, the Lexington Hotel on Michigan Avenue, with a machine gun. Regardless of the truth of that allegation, it is definitely known that, upon the death of Colosimo, John Torrio became the lord of Chicago's underworld. In recent years Ralph Capone has been very influential in the vicinity of Lyons, Ill. Accardo started out as a bodyguard for Al Capone during Prohibition and later had his own 40-year reign as a Windy City mob boss. Then Michael Volpe, the man responsible for watching the house, was called to testify. That was their testimony. They bought 150 juke boxes which they distributed and took about 70 spots away from Peskin. DeMere approached Buglio and asked him to go outside for a conference and a few minutes later the shooting occurred. Released on parole in 1947. In January of 1978 Accardo and his wife Clarice went to their condo in Indian Wells, to enjoy the sun, entrusting their house to long time friend Michael Volpe. Subsequent testimony proved they were killed in a basement and their bodies later dumped in a grave. He is a. big automobile dealer on Chicago's East, Side, too. And he and Swanson also had their throats slashed. When the cops arrived they told Levinson that the thieves had done a superb job, leaving no traces. In particular, he became entrenched in a Chicago suburb called Burnham, Ill., with the assistance of John Patton, who became known as the boy mayor of Burnham. Mr. Peterson, will you continue with your testimony, please? For the information of the press and others here, the committee will continue with Mr. Peterson's statement at 2:30 this afternoon in this room, but his statement will be interrupted at 3:15, at which time Mr. William Brown, the president of the Pioneer News Service, will testify. He has a long criminal record. In 1923 he operated a garage at 1214 Jackson Boulevard, Chicago, with Murray Humphreys. The purchase was made in the name of Irving Haim and the money was obtained from a New Orleans bank on notes secured by Irving Haim, Phil Kastel, Frank Costello and William Helis. The next individual of importance in the Capone syndicate is Ralph Pierce. Gambling is unquestionably closely associated with the top-ranking members of the syndicate. Before long, the mob was wealthier than it had been in years. Is that the name of the syndicate? Much like Capone, Giancana craved attention and loved the limelight. The Federal grand jury returned an indictment charging the following violated the Federal Communications Act : Jack Guzik, 7240 Louella ; Leslie A. Kruse, alias Kane, 5206 Oakton Street, Niles Center; Maurice L. Goldstein, alias M. L. Goldie. He was 86 years old a remarkable achievement for someone who had spent most of his life in such a dangerous business. The principal purpose of my testimony is first to show the growth and development of some of the major gangs and the connections between these major gangs and many other sections of the country. A protg of Prohibition-era boss Al Capone, Accardo ordered a combined 10 revenge slayings and cover-up murders tied to the daring predawn break-in. Mr. PETERSON. On August 21, 1941, the State's attorney of Chicago charged that Rocco De Stefano together with Harry V. Russell, prominent handbook operator, Peter Tremont, policy operator, Patrick Manno, policy operator, Max Caldwell, Milton Schwartz, and Maurice Margolis, had helped spend $910,000 looted from the treasury of local 1248, Retail Clerks Protective Association, union funds. I don't think he was ever confronted by anybody with it. . The police recovered records which revealed that John Torrio, John Patton, Al. The house was built by a millionaire manufacturer in 1930 for $500.000. Unfortunately, I was under such pressure in trying to get ready; in fact, I just finished dictating it yesterday before I left and I didn't have extra copies. The Italian-American Mafia, known as La Cosa Nostra, was doing great. Although he was not officially implicated in the movie extortion case the Chicago press reported on June 29, 1942, that the president of the Chicago Motion Picture Operators Union was to testify in New York City on the following day regarding statements made by him concerning payments made by the union to the Capone syndicate. Lester A. Kruse, alias Leslie Kruse, alias "Killer" Kane, has been actively associated with members of the Capone syndicate and has also been prominently identified with the racing news service activities. They recently just built a large addition to it. It will be noted that Epstein is a big betting commissioner; and, in view of the fact that Virginia Hill has been so closely identified with Benjamin (Bugsey) Siegel of the New York mob and Allen Smiley, Epstein assumes some importance with reference to the Nation-wide gambling set-up. Just recently, however, in 1948, John C. Stofel became the village president out in Cicero and was doing a very excellent job. Tony Capezio, "Tough Tony," resides also in River Forest, Ill., 1048 Ashland Avenue, and has been considered a member of the Capone mob since about 1929. That is correct. Maddox originated from St. Louis, Mo., where he was convicted for burglary on August 5, 1919. He knew he wouldn't get his jewelry back even if the burglars were caught. And that wasnt the only setback for the mob. The United States Government was insisting that this $50,000 be included in Humphreys' income-tax returns. He called 911 straight away. The third indictment named Edward M. Dobkin, Cornelius J. Sullivan, James Rossi, alias James Ross, all Chicago gamblers, and charged them with receiving Continental Press News and distributing it from the Victoria Hotel to numerous bookies. This company---. 27678 was returned by the Cook County grand jury charging Ralph Buglio, Abe Rosenthal, and Mary Duff with burglary. TESTIMONY OF VIRGIL W. PETERSON, OPERATING DIRECTOR, CHICAGO CRIME COMMISSION, REPRESENTING THE AMERICAN MUNICIPAL ASSOCIATION. Jack Guzik was very close to Al Capone until the time he died. Possessing a nimble mind and a canny instinct for survival, Accardo boasted of having never spent a night in jail. Senator WILEY. After John Torrio left Chicago about 1929 is when Al Capone became the ruler of Chicago's underworld. Senator WILEY. A five-bedroom, 6,200-square-foot Colonial-style mansion in River Forest once owned by legendary Chicago Outfit figure Anthony "Tony" Accardo sold Friday for $1.13 million exactly half what. In connection with De Grazio's income tax evasion case, when he was being charged with income-tax evasion, Federal agents seized him at his home at 1049 North Elwood Avenue, Oak Park, in 1934. This burglary was a personal insult to Accardo, no doubt about it. Is that the same person mentioned by Mr. Brown that he bought his stock from? The following year he was convicted for robbery in St. Louis, Mo. I have that in another paper here, I am sure, but I do not have it with me. I will be glad to do that. In May 1931 Ralph Capone was allegedly operating the Casanova Club, 1025 North State Street, Chicago, Ill. With reference to the Federal income-tax violation Ralph Capone received a sentence of 3 years in a Federal penitentiary and a $10,000 fine in one case, a similar sentence in a second case and a year in the Cook County House of Correction and a $10,000 fine in the third indictment. I can check it through our files. Pat Manno has been in association with a number of nationally known gangsters at hotels in Miami Beach, Fla., during the past season, and that Manno also owns a residence at 5812 Pinetree Drive, Miami Beach, Fla., which is in his wife's name, Dorothy Manning. Mr. PETERSON. Capezio's wife Marie is the sister of Frank Nitti, former head of the Capone mob. In fact, it was brought out that Heeney was one of the men who handled the contact with State Senator Brady and. "Little New York" Campagna admitted having an interest in and receiving huge sums of money as his share from the proceeds of this establishment. The CHAIRMAN. He is a well-known gambler in Chicago for the past probably 30 years, I guess, and his last name is Ryan. What position did you hold with the FBI when you left? All of you remember him undoubtedly. Mr. PETERSON. Ralph Capone's conviction was upheld when the case was appealed. The New York group was also interested in this racket, and at a single session of one legislature they claimed they spent the sum of $100,000 in an effort to secure favorable legislation. In 1930 Costello and his lieutenant, Dandy Phil Kastel, were associated with Irving Hain. On December 22, 1943, Nick De Grazio appeared as a witness for a defendant in a rape case. He is a prominent businessman. From the East coast all the way to the West coast, and everything in between was controlled by twenty-some mob families. Paul Ricca, among other property, has a summer estate located near Long Beach, Ind., worth about $75,000. The CHAIRMAN. Sedway's testimony apparently did not carry a whole lot of weight, as the final 11,500-page Kefauver Committee report included just four pages from the Las Vegas proceedings. Guzik's brother-in-law, Louis Lipschultz, has been active in Cook County. However, they were subsequently released as a result of court action and are presently on parole pending appeal. Vogel, among other contacts, did have one George "Babe" Tottenelli, who was the trouble-shooter for Ed Vogel on the south side in connection with slot-machine activities for a number of years. He was a three-time target of the U.S. Senates permanent subcommittee on investigations. I have no control over anybody, Accardo testified. At that time they were charged with violation of the National Prohibition Act. In 1924 he began operating the Evans Co., at 311 Curtiss Street. In 1944 it was alleged that Gus Alex, Hymie Levin, Gus Liebe, and others were connected with the notorious gambling. Tony Capezio was one of the suspects in the St. Valentine's Day Massacre in Chicago in 1929 and was also a suspect of the murder of Mike DePike Heitler. The CHAIRMAN. As I said before he has been associated in business activities with Tony Accardo. For a while, Frank Nitti stepped up to take Capones place as boss. Peter Tremont has operated in Chicago the Silver Wheel, the Ditto Wheel, and the Rome Wheel. By the late 1970s he had stepped back, letting others do the work and take the heat. Phil went to Vegas, sent to kill Sunshine on suspician that he was stealing some of it. Then Michael Volpe, the man responsible for watching the house, was called to testify. Accardo family members and Michael Volpe, a handyman for Accardo who discovered the burglary, appeared before the grand jury, represented by appellee Carl M. Walsh. The $275,000 seized in the raid on Accardo's home was later returned to him. Mr. Brown left before the name was mentioned, or I would have had him stay. He spent a lot of time before the grand jury. Levinson had a successful jewelry store on North Clark Street. Western Union provided the technical equipment. That gives a brief background of the beginning of the Capone syndicate. In 1931 Rocco De Grazio was the leader of the Capone organization in the north and west suburban sections of Chicago. Early in 1950 the Los Angeles Police Department was seeking Jack I. Dragna, one of the most notorious gangsters on the west coast. Since Frank Nitti committed suicide in 1943, Tony Accardo has frequently been considered the leader of the Capone syndicate. It goes into the major crimes and the effect upon the lives of the citizens in the various communities, and so forth? He was implicated in the million-dollar movie-extortion case along with the other Capone gangsters. Ryan was a known burglar, and when police discovered his body he had a police scanner on him, which is used by a lot of burglars to monitor police activity. He is an associate of many of the most important members of the Capone outfit, including Nitti, deceased leader of the gang, Murray Humphreys, Paul Ricca, and Louis Campagna. Hunt was indicted for murder and his chauffeur, Hyman Gottfreed, alias Hy Godfrey, was indicted as an accessory. During this period the Capone syndicate was virtually in control of dog racing throughout the Nation. On May 8, 1930, the Federal prohibition agents raided the Cotton Club, 5340 West Twenty-second Street and the Monmarte Cafe, 4835 West Twenty-second Street, both Cicero, Ill., and alleged that these places were owned by Ralph Capone. Pat Manno, alias Patrick J. Manning, has been in the policy racket in Chicago for many years. Shortly thereafter the entire loot was returned to Levinson. With the distribution of alcohol once again legal, the Outfit had to find a new source of income. It proved an ill-conceived endeavor, and it didnt take long for Accardo to seek his proverbial pound of flesh. While Accardo had advised Giancana to keep your head down, Giancana did not listen. This organization was known as, as I said before, I believe, the Trans-American Publishing & News Service, Inc. On June 13, 1947, O'Hara publicly announced with reference to the Trans-American "We are going out of business. Information has been developed indicating that gunmen who have been involved in some of the shootings on the west coast have hung around Borcia's establishment in Los Angeles. He is still apparently active. He was born on June 6, 1920, and was the youngest and last remaining child of Joseph and Mattia Cashio Accardo. The CHAIRMAN. The premises on which the Primrose Bar in Los Angeles is located were previously owned by Jack Dragna, notorious west coast gangster who operated a vice resort upstairs. In 1943 the newspapers charged the Nitti-Ricca-Campagna combine had cleaned out the treasury of the Retail Clerks International Protective Association, Local 1248. Capezio has also been closely associated with John I. In 1935 when Rocco De Grazio was convicted of income-tax evasion he admitted he was operating 18 handbooks, many of which were in Melrose Park, Ill., and he paid $1,200 per month for protection. He was once charged with the time-worn badger game. This book contained the addresses and names, in many instances the private telephone numbers, of some of the leading underworld characters in the Nation. He has since been writing for more than five years, developing his expertise in subjects like Soviet history as well as World War II, and his work has appeared in Esquire, Hyperallergic, Polygon, History Today, and The New York Observer. It was surrounded by a seven-foot-high wrought iron fence and two electrically controlled gates. After four trials, Hunt was found not guilty on January 11, 1943. That company has the cigarette-vending machines where you put in 20 cents and get out a package of cigarettes. Nobody was ever arrested for any of the murders. Accardo seems a closed book and there is little in the way of witness testimony to his character. Mr. HALLEY. Mr. PETERSON. We will resume in about 5 minutes. In New York the company was known as the True-Mint Co. In 1948 Peskin was a distributor of juke boxes under the name of the Automatic Music Instruments Co. in States of California, Nevada, and Washington. The price for the misdeed would be paid in blood. Some time later Torrio was sentenced to serve 9 months in the Du Page County Jail and received a $5,000 fine. In 1931, Capone was found guilty of tax evasion and sent to prison. He has been the part owner of the El Patio gambling place at 5914 West Cermak Road, together with Joe Corngold. In other words, they get you coming and going. On October 27, 1934, Humphreys pleaded guilty to income-tax evasions and was sentenced to serve 18 months in the Federal penitentiary and was fined $5,000. He had to eliminate two more men, men who could tie him to the killings of the burglars. Senator WILEY. Information was received some years ago that Evans was one of several hoodlums who were attempting to gain control of the dry-cleaning industry. Apparently, Capone gangsters intended to kill Bugs Moran, Willie Marks, and Ted Newberry, all of whom were North Side underworld leaders. The CHAIRMAN. He was indicted by the Cook County Grand Jury on January 30, 1942, as I mentioned a few moments ago, with others for conspiracy to operate policy rackets. All Rights Reserved, Copyright 2019, Thomas P. Hunt, Whiting, VT 05778. Chicago. The arrest was merely one on suspicion, and they were released. Did the Federal Government take any action for the collection of back taxes? Mr. PETERSON. The press alleged that was killed by the Capone gang in order to take over the Motion Picture Operators Union. Europe and others push for a standard lunar time zone. In 1947 it is known that Evans claimed to be the owner of the establishment. Last reports were to the effect that Imburgio was suffering from Burger's disease, which has incapacitated him. I think I went into that case just a few minutes ago. Willie Heeney has likewise been prominently identified as a member of the Capone syndicate for a long time. That information, of course, has been a matter of public record over a long period of time. Accardo was supposedly heard whistling 'You are my sunshine' referring to a Vegas lawyer nicknamed 'Sunshine'. He has also been known to maintain close relations with some of the individuals who have been prominently identified with the underworld on the east coast. Mr. PETERSON. In other words, the law violators dictate law-enforcement policies and control certain law-enforcement agencies. Until 1921 Kastel had operated a bucket shop under the name of Dillon & Co., which it was claimed resulted in swindling clients out of approximately a half million dollars. So he decided to call his friend Joe Batters. I would have to check that, though. But many experts believe thats one of the main reasons for his success and a testament to his intelligence. His draft card in 1944 which was found on him when he was arrested carried the address of 5123 University Avenue. are important figures in the Capone organization. He was also arrested in 1943 as a suspect in the Estelle Carey murder case in Chicago and in 1945 was arrested for questioning in connection with the murder of James "Red" Forsythe, a notorious hoodlum. There is no indication he has been active in rackets in Chicago and in fact indications are to the contrary. He also maintains a residence address at, 3100 North Sheridan Road in Chicago, where his brothers, Rocco and Joe, live. About 70,000 people. What did their tax returns show? He was released on parole in 1947 and it is still pending. Accardo was arrested many times on allegations ranging from murder to extortion to kidnaping. Accardo, the son of a shoemaker, was born Antonio Leonardo Accardo in 1906 in Chicagos Little Italy. Accardo was called to testify, but he took the fifth and revealed nothing. Still, whenever Accardo was called to court to testify on his involvement with the Outfit, he firmly denied any and all allegations. The CHAIRMAN. I might possibly have it here on a legitimate enterprise. 1 and the czar of business rackets in Chicago. The five New York families and the Chicago family, known as The Outfit, held the most power. Benjamin "Bugsy" Siegel, Meyer Lansky, and Charles "Lucky" Luciano were said to be the enforcers for the gang and they engaged in terrorizing tactics as enforcers. Though Accardo technically retired from being a Mafia boss in the late 1950s, he continued to pull the strings as a consigliere. Time goes fast. Senator WILEY. As one mutual associate put it: Tony Accardo has more brains before breakfast than Al Capone ever had all day.. Several months ago it was alleged that Harry Russell had "muscled" into the S. & G. Syndicate, Miami Beach, Fla. Harry Russell, together with his brother Dave Russell, operated a handbook at 186 North Clark Street, Chicago. In the early 1960s, it seemed like Accardo was in danger of serving a prison sentence. As an interesting sidelight as to how he got the name, in May 1930 Sam Hunt was arrested in the State's attorney's office as a member of a shotgun squad that kidnaped and wounded a man at Berwyn and Ashland. In the income tax hearing there it was claimed that Lipschultz then received a gross income of $107,111 from the Harlem Tavern in Stickney, Ill., the Stockdale Saloon in Forest View, and the old Hawthorne Kennel Club, which was known as a Capone syndicate enterprise. The activities of the Capone gang consisted principally of illegal liquor racket, gambling, and allied activities such as dog racing. That is a generalization. He owns a home, in addition to his address in Chicago at 6471 Allison Road, Miami, Fla., Allison Island. Pollack associated with numerous other members of the Capone syndicate, and it was customary for him to take them on airplane trips from Chicago to Miami. But the bodies kept dropping. By the mid-1920s, Accardo had already met Al Capone. I said that Joseph Aiuppa was allegedly one of the owners of the Taylor Manufacturing Co. in Cicero. The CHAIRMAN. The CHAIRMAN. When Colosimo was killed in 1920 there was some justification for the claim that Torrio had imported Frank Yale to commit the murder. The indictment was dismissed after Al Capone was convicted of income-tax evasion and sentenced to the Federal penitentiary. In recent years he has operated the Primrose Path, 1159 North Clark Street, Chicago, and in recent months has operated a place called the Primrose Bar in Los Angeles. An argument followed and the driver of the car was shot and killed. It was also alleged at that time that Humphreys and other hoodlums were attempting to muscle in to a milk-drivers union. He was frequently referred to as the master mind of the underworld. The CHAIRMAN. The John Binder Collection Feeling disrespected and unappreciated, a rogue Chicago Outfit burglary crew robbed the suburban mansion of longtime crime boss Tony "Big Tuna" Accardo. In 1922 indictment No. Sam "Golf Bag" Hunt, whose real name is Samuel McPherson Hunt, has been closely associated with many prominent members of the Capone syndicate including Murray Humphreys, Ralph Pierce, Jack Guzik, Charles Fischetti, and others. In a criminal career that spanned eight decades, he rose from small-time hoodlum to the position of day-to-day boss of the Outfit in 1947, by moving the organization into new operations and. Moretti had been castrated and disemboweled. In 1932 it was alleged that Humphreys and others were attempting to dominate the teamsters union. He had been badly beaten and had his throat slit. Mr. Peterson's statement will take approximately 4 or 4 1/2 hours more and he has to leave at 5 o'clock tomorrow afternoon; so, much as the committee hates to work overtime and anybody else hates to work overtime, we will have to go on for 30 minutes this afternoon. Accardo died of heart and lung. As of 1941 he was vice president of the Cook Oil Co. As of 1944 he had addresses at 2233 East Sixty-eighth and 1722 East Seventieth Street, Chicago. Did they return what they made on Federal income tax returns? Tony Accardo has operated gambling places in Chicago in partnership with both Harry Russell and Dave Russell, and he has also been a partner of Lawrence Imburgio. Too much time. Mr. PETERSON. The CHAIRMAN. Mr. PETERSON. That covers it I think, mostly. They forced the chief of police out, as a matter of fact. As early as 1932 Joe Adonis, Frank Erickson, and others were promoting a big sweepstakes operation. 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