The sun. [volume] (Newberry, S.C.) 1937-1972, September 21, 1951, Image 2
THE NEWBERRY SUN, NEWBERRY. S. C.
r,
SCANNING THE WEEK'S NEWS
of Main Street and the World
Korean Peace Negotiations Stalled;
Senate Group Makes Crime Report
BLACKMAIL —With renewed claims by Chinese Communists that
Kaesong’s neutrality has been violated several times, a general feeling
that peace negotiations are stalled until after the San Francisco con
ference on a Japanese peace treaty, which began on the 4th, has de
veloped in the nation’s capital.
Gen. Matthew B. Ridgway has reportedly expressed the opinion
that the cease-fire talks were a blind from the start and that the Allies
must now be prepared for renewal of full scale conflict. The Communists
have played at the game of blackmail—a peace in Korea for abandon
ment of the Japanese treaty.
Now that the treaty conference is underway, and the U.S. continues
in its determination to sign the treaty, there is little reason to believe a
settlement will be reached in Korea. To the corttrary, it appears likely
all-out war will flare up at any moment.
The Communists have used the weeks of negotiations to full advan
tage in their build-up of equipment and men in Korea. They are re
ported to have approximately 500,000 men in the country, with 400,000
near the front. Approximately 600 tanks and great numbers of heavy
guns have been brought into the war zone. The build-up of air power is
well over 1,000 planes.
N If the Communists have benefited from the weeks of lull, so have
United Nations forces. Regiments are at full strength for the first time
and have better and a greater number of weapons. Their defense posi
tions are the best since the Korean conflicts began.
A few of the nation’s leaders still believe there is a 50-50 chance of
peace in Korea. But every day the odds are changing for the worse.
f
< CRIME REPORT— The senate crime investigating committee con
cluded its 15-month investigation with a report that said “the tentacles
of organized crime reach into virtually every community throughout
the country.”
K As a solution it recommended the formation of a national crime co
ordinating council which would support and aid the activities of crime
commissions in the home towns of the nation.
Among its other recommendations: (1) That the federal security
agency develop a nation-wide educational campaign on the effects of
narcotics; (2) that the federal penalty for narcotics peddling be in
creased; (3) that congress prohibit “interstate facilities in connection
with any bet or wager, thus putting an end to layoff and comeback
transactions between gamblers in different states”; and (4) that con
gress tighten laws to prevent aliens from entering illegally and liDeral-
ize the deportation process.
One of the most startling statements of the report was the one which
charged that some communities have been enslaved by organized crime
and grafting public officials and that honest people have lost their voice
in their own local government in many areas.
OATIS CASE —Czechoslovakia’s ambassador received a stormy wel
come last week when he called on the White House to present his
credentials. President Truman told him bluntly the quickest way to im
prove relations between the two countries would be to free imprisoned
newspaperman, William N. Oatis.
The ambassador said the “case is closed”, but a number of diplo
matic observers believe otherwise. They believe Czechoslovakia will
try a little blackmail, such as the deal the U.S. engineered with Hungary
to win the release of businessman Robert A. Vogeler, also imprisoned
on spy charges.
Hungary was granted a number of minor trade and diplomatic con
cessions for releasing Vogeler. Czechoslovakia's terms may be curbs on
Radio Free Europe, a privately run American radio station at Munich
which broadcasts anti-Communist propaganda behind the Iron Curtain.
DEFENSE TREATIES—The United States last week signed defense
treaties with the Philippines, Australia, and New Zealand. It was a
major step in this country’s policy of securing peace and stopping the
spread of communism in the Pacific.
The pacts, which following the pattern of the 12-nation North At-
' lantic alliance by binding the U.S. to aid the Pacific countries in case
of an attack on either, must be ratified by the senate. They are not
expected to come up for action before early next year, however.
FOOD PRICES—The Independent Grocers Alliance, which has some
10,000 members, predicts that food prices are likely to go down this fall.
According to J. Frank Grimes, president of the group, “Big farm
crops and heavy production of processed foods promise to make many
food price ceilings purely academic within the next few months.”
Whether propaganda or not, Grimes recommends the group’s mem
bers reduce food inventories in the weeks ahead. “That way, stores can
be ready to jump in and buy when prices ease—then launch big sales
that will make them more friends among thrifty consumers.”
FOREIGN AID- The senate last week passed its version of a for
eign aid bilL The measure authorizes $7,286,250,000 to erect military and
economic defenses against communism. The total was $1,213,750,000 less
than asked by President Truman.
Two weeks ago the house sliced $1,001,250,000 off the $8,500,000,000
requested by the administration.
Now the bill goes to conference with the house and senate working
out a compromise of their differences. Whatever the final figure, it will
not be near the $8.5 billions asked by the administration. The bulk of
the funds, approximately 80 per cent, in both the house and senate bills,
will be used for military aid. Later congress must vote actual funds to
carry the authorizations approved by both branches.
DOUGLAS UPROAR—The suggestion last week by William O.
Douglas, supreme court justice, that the U.S. recognize Red China, has
caused an uproar on the American scene.
Douglas, who made the suggestion in an interview in San Francisco
upon his return from an expedition along the southern frontiers of both
Russia and China, said recognition would give the free world a real
political victory. He said recognition would capitalize on the struggle
between Chinese nationalism and Russia’s drive for far eastern solidar
ity.
In the senate, however, Douglas’ statement brought blasts of anger.
Said Senator Connally of Texas, “We have not recognized Red China.
We do not intend to recognize Red China. Justice Douglas is not secre
tary of state. Douglas is not President of the United States. He never
will be.”
(Ed. Note—While Drew Pearson
is on a brief vacation, the Wash
ington Merry-Go-Round is being
written by several distinguished
guest columnists, this one by Mr.
Henry J. Anslinger, the Treasury
Department’s Commissioner o f
Narcotics and the U. S. Representa
tive on the United Nations Narcotio
Commission.)
The Narcotic Peddler
r^HE narcotic peddler
not
de
does
kidnap your children; he
stroys them.
In extreme distress, parents
brought their 16-year-old boy to my
office. The lad quivered like the
leaves of the aspen. He was suf
fering the dreaded withdrawal syn
drome of drug addiction. He was
one of those who used bravado to
gain admission to the delinquent
gang.
“Tell me where you get heroin,”
I said. “I will send you to the
hospital for a cure.”
We used an undercover agent to
buy from the “pusher,” who led
us to the wholesale peddler. Then
by progressive steps we graduated
to one of the' big traffickers who
controlled a nation-wide syndicate
We trapped him like a rat. It took
men, eKSless patience, long hours
of vigilant surveillance, and infi
nite detailed corroboration. Now
where did he get his supply? From
a country which signed the Geneva
Convention of 1931 to limit the man
ufacture of narcotic drugs to med
ical needs, and then estimated its
heroin consumption at ten times its
actual medical needs.
We first picked up the interna
tional leakage when the Los An
geles county sheriff turned over to
us a peddler with ten ounces o:
heroin. He got it from a ship’s
steward traveling between New
York and Trieste. In Trieste, the
Allied military authorities had in
advertently repealed narcotic laws
Diversion in Italy provided a ready
source, with the connivance of the
Mafia. Wheels within wheels. The
narcotic traffic is intricately inter
laced and skillfully interwoven.
Crime in America
By ESTES KEFAUVER
United States Senator
One of a Series
Birth of the Crime Committee
Ordinarily, Americans don’t think much about the existence
and influence of organized crime. They know vaguely that it is
there, and they let it go at that. For some years, however—since the
days when I was a young lawyer in Tennessee—I had been troubled
by the unpleasant realization that there was a tie-up between crime
and politics.
The idea stayed with me when I became a member of the senate
in January, 1949. More and more I was concerned with the
phenomenon of politico-criminal corruption.
Early in 1950, an accumulation of events high-lighted the
desperate need for learning the real facts about crime in America.
The American Municipal associa-
EVA QUITS—Eva Peron, politically the most powerful woman in
the western hemisphere, who a few days before accepted the nomination
for vice preident on her huband’s ticket in the November election, last
week announced her decision to quit the race.
The western world, which has eyed the Argentina dictatorship with
a suspicious eye, had heard reports of a serious split in the Peronista
party since the President and Senora Peron had told a mass meeting
that they were ready to “bow to the will of the people.”
Her withdrawal is expected to consolidate the party behind her hus
band, Juan, and elect him to another six year term.
DEFENSE—President Truman in a nation-wide broadcast from San
Francisco, where he attended the opening of the Japanese peace treaty
conference, warned the nation that not even an armistice in Korea must
be allowed to slow the efforts to strengthen the free world against future
Communist aggression.
“Whether negotiations in Korea are successful or not,” he said, “we
must continue to drive ahead to build defensive strength for our country
and the free world.
“The plain fact is that the Communists may try to resume the of
fensive in Korea at any time. Moreover, they are capable of launching
new attacks in Europe, in the Middle East, or elsewhere in Asia, wher
ever it suits them.”
SCHOOL DAYS
Schools Due to Set Record Enrollment
Oscar Ewing, federal security ad
ministrator, estimates - that more
Americans are expected to go to
school this year than ever before.
He figured the total at 33,121,000,
compared with the 1950-51 peak of
82,703,000.
Ewing said, the largest enroll
ment will be at the elementary
level—from 23,686,000 last year to
24,468,000 this year. Secondary
school enrollments are expected to
increase from 6,142,000 last year to
6,168,000. -
Due to the diminishing number
of war veterans and to the draft
ing of college-age men, the enroll
ment in colleges and universities is
expected to decline from 2,500,000
last year to 2,225,000. Private com
mercial schools are expected to
have 175,000 students.
Bureau Is Model
We have 195 agents; less than 2
percent of the federal enforcement
personnel. These men account for
10 per cent of the federal prison
population, and their convictions
average 95 per cent. Our force is
about as large as that of the police
department in a place the size of
Tampa, Florida.
The whole world regards the
U. S. Treasury Department’s
Bureau of Narcotics as a model.
The work is dangerous, nerve
racking, round-the-clock, yet
there is something which makes
crusaders of all who -engage in
it. They respond beyond the
call of duty.
Our enemy is artfully cunning.
The seller is satisfied, and the user
won’t tell. There are no complaints
as in crimes like Tobberies and
kidnapping. Not one witness before
the Senate Crime Committee would
reveal his source of supply, through
fear of consequences. We work
completely undercover, and must
come up with the corpus delicti
(evidence) at the conclusion of the
investigation.
We need a law which will put
the peddler away longer than 1’6
months. The House of Representa
tives passed such a bill. It is pend
ing in the Senate.
UN Seeks New Plan
Harold Normandale is an addict
with over 100 arrests, including one
for rape, murder, and many for
narcotics. He peddled narcotics to
take care of his own addiction. This
type creates addicts. There are
thousands like him. They have no
sense of moral responsibility. They
would, without hesitation, shoot
heroin into the radiant veins of
your 15-year-old daughter, and send
her into prostitution to get money
for the heroin they pump into her
innocent body, yet such peddlers
get off with suspended sentences.
The addict must be quaran
tined in the city hospitals. Bal
timore has the distinction of
being the first city to set aside
10 beds for the disintoxication
and rehabilitation of drug
addicts.
Limitation on manufacture of
narcotic drugs and control of inter
national distribution have been
accomplished through eight treat
ies. The United Nations is now
working on a plan to limit opium
production to world medical needs.
Traffic Grows
About 1947 we had the traffic
under control. Prison wardens re
ported an absence of addicted crim
inals. The population of our Lex
ington Narcotic Hospital had fal
len to sucb an extent that a move
was under way to abolish the hos
pital. I urged all to stand by and
to prepare. We could feel it com
ing here and abroad. Warnings
went unheeded. In the past two
years it rolled in like an engulfing
surf.
tion, alarmed by the effects of in
terstate crime operations on local
governments, called for federal con
sideration of the problem. Newspa-
papers—and the free press is one
of our democracy’s most potent
weapons — were making startling
disclosures about the power of mod
ern crimesters, the white-collar suc
cessors to the A1 Capones of an
earlier era.
I felt the time had come to dem
onstrate that there is nothing the
American people cannot overcome
if they know the facts So I took
the issue to the senate floor by in
troducing a bill calling for a full-
scale senate investigation of crime
in interstate commerce.
As chairman, 1 was extremely
fortunate in having the backing of
four able colleagues. These were
Sen. Robert R. O’Conor, Democrat,
of Maryland, to whom I turned over
chairmanship of the committee last
May when I felt the time had come
for me to step down; Sen. Lester C.
Hunt, Democrat, of Wyoming, whose
great gift for common sense and ar
riving at sound decisions contributed
much stability to our deliberations;
Sen. Alexander Wiley, Republican,
of Wisconsin, and that remarkable
moral battler, Sen. Charles W. To-
bey. Republican, of New Hamp
shire.
Serving on the crime commit
tee was a tremendous emotional
experience for all of us. For me,
it became more than merely a com
mittee appointment: it became a
way of life. Almost everything con
ceivable happened; in San Francis
co, someone stole my hat in the
federal courthouse; in Los Angeles,
a youngster grabbed me in the court
house corridor as I walked past a
telephone booth and asked me to
say a word to “Mom.”
* • •
Our first hearing was conducted
in Miami, Fla., on May 26, 1950.
Between that date and the time my
term as chairman ended, I traveled
approximately 52,380 miles from
coast to coast. Hearings were con
ducted in Miami, Tampa, New Or
leans, Kansas City, Cleveland, St.
Louis, Detroit, Los Angeles, San
Francisco, Las Vegas, Philadelphia,
Washington, Chicago, and New York.
They brought in evidence of wide
spread crime in other cities and
states, and our investigators dili
gently pursued these leads. We ques
tioned witnesses from nearly evory
state in the union.
Through it all, I listened with
mounting indignation and revulsion
to the shocking story of our national
disgrace. When it was over, we had
established that a nationwide crime
syndicate does exist in the United
States, despite the protestations of
a strangely assorted company of
criminals, self-serving politicians,
plain blind fools and others who may
be honestly misguided, that there is
no such combine.
The Mafia and
Lucky Luciano
The Mafia is the shadowy inter
national organization that lurks be
hind much of America’s organized
crime. It is a network about which
no member, on fear of death, will
talk.
In fact, some of the witnesses
whom we had good reason to be
lieve could tell the Senate Cringe
Committee about the Mafia, sought
to shrug it off as a sort of fairy tale
or legend that children hear in
Sicily where the Mafia originated.
The Mafia, however, is no fairy
ale. It is ominously real, and it
nas scarred the face of America
with murder, traffic in narcotics,
smuggling, extortion, white slavery,
kidnaping and labor-racketeering.
La Mafia even has its secret—
and, of course, unwritten — code
called “Omerta,” a derivation of
the Italian word for "man.” The
code is simple and brutal: death
to those who resist or inform on
the Mafia. Usually, a member of
the offender’s family is killed as
additional warning.
Narcotics Agent Claude A. Foll-
mer testified that there is “some
contention” as to the identity of
the New York head of the Mafia.
He revealed that “it has always
been my understanding that it is
either Vincent Mangano or Joseph
Profaci.”
Mangano is said by New York
police to be active in Brooklyn
waterfront rackets. We had planned
to question him, but our hearing
time was consumed by other de
velopments. His brother Philip Man
gano. also active on the waterfront
and publicly identified as promi
nent in the Mafia, ^ras questioned
by the committee in executive
closed session. A month after our
New York hearings, Philip Man
gano was found dead in a Brook
lyn swamp, shot three times in the
head.
Agent Follmer told how the Nar
cotic Bureau in the early 1940s
broke up a vicious Mafia-backed
Kansas City narcotics ring. “All of
these persons,” he related, “were
members of the Mafia, or Black
Hand, and were financed in the
narcotics traffic as a group by the
Mafia. This Mafia subsidiary placed
the illicit drug traffic on a business
like basis and hired a legal advisor,-
supervisor, general manager, trav
eling representative, a bookkeeper,
and an extensive retail sales force. •
“At St. Louis, a branch office
operated under John Vitale, who
was in turn under the domination of
Thomas Buffa and Tony Lopiparo,
chiefs of the St. Louis Mafia.”
(In St. Louis, some months later,
the committee summoned Gang
ster Lopiparo, alias “Lopip,” to
ask him about his presence with a
group of Sicilian gangsters in Tia
Juana, Mexico, about the time Bin-
aggio and Gargotta were murdered
in Kansas Qity. Lopiparo at first
was a sullen, snarling witness. He
crouched in the witness chair and
refused even to admit he had been
in Tia Jilana. When I asked him on
what legal ground he could jus
tify his refusal, he snapped back:
“Haven’t I got a Constitution?”)
“In 1942,” Follmer went on, “it
was determined that one of the
sources of supply for the Kansas
City group was a Mafia organization
in Tampa, Fla., which in turn re
ceived smuggled drugs^ from Mar
seilles, France, via Havana, Cuba.
It was also indicated that Sebastvno
Nani, one-time Brooklyn Mafia
hoodlum, now established in Cali
fornia, had furnished several large
shipments of drugs to the Kansas
City syndicate from New York.”
When the committee said that
Lucky Luciano, now in exile in Italy
after his deportation from the United
States, was operating as the inter
national arbiter of crime, an as
sociate of Luciano’s in Italy pro
tested that once again poor Mr.
Luciano was being maligned. We
do not think so. There was too much
solid evidence.
Daring World War II, there was
a lot of hocus-pocus about sup
posedly valuable services that Lu
ciano, then a convict, was sup
posed to have furnished the mili
tary authorities in connection with
plans for the invasion of his native
Sicily. We dug into this and ob
tained a number of conflicting stor
es. This is one of the points about
which the committee would have
questioned Governor Dewey, who
commuted Luciano’s sentence, if the
governor had not declined our in
vitation to come to New York city
to testify.
One story which we heard from -
Attorney Moses Palakoff was that
naval intelligence had sought out
Luciano’s aid and had asked Pola-
coff to be the intermediajry. Pola-
koff, who had represented Lifciano,
said, !‘The theory behind it waa
that the government had the Ger
mans pretty well spotted, but they
were afraid that if any sabotage
might be done it would be done
through Italians, who weren’t well
spotted." He was referring to sabo
tage along the New York water
front. From a retired naval com
mander, who had a hand in the af
fair, we received inconclusive testi
mony as to the substance and value
of the information obtained from
uciano.
Next Week: The Wire Service:
Public Enemy No. 1.
Condensed from the book, “Crime In
America,” by Estes Kefauver. Cpr. 1951.
Pub. by Doubleday, Inc. Dist. General
Features Corp.—WNU.
MORAL BREAKDOWN
FBI Director Notes Athletic Scandals
WASHINGTON — J. Edgar Hoo
ver, chief of the Federal Bureau of
Investigation, believes that the re
cent and current college athletic
scandals, combined with the gangs
of youthful hoodlums in large cit
ies, indicate “a breakdown of the
moral fiber of the country.”
In a recent testimony made be
fore a Senate Appropriations Com
mittee, the FBI director said there
“is much less respect for law and
order.” He cited cases in large
cities where gangs of hoodlums run
wild, with little respect for law.
The tendency to break awaj
from “controls and discipline,” he
said, also extends to the colleges,
many of them much too slack in
scholastic requirements. Commer
cialized athletics is much at fault,
he concluded.
Crime in America
By ESTES KEFAUVER
United States Senator
Two of a Series
The Wire Service: Public Enemy No. 1
The nationwide crime syndicate became “big business” during
prohibition. So when the “noble experiment” ended, the gangs
had to look for a new money-maker. Narcotics were profitable but
limited. Organized prostitution has been made difficult by the
Mann (white slavery) Act. Thus, the mobs turned to illegal gam
bling, which now, according to the experts, has become a 17 billion
dollar annual racket.
“Gambling,” said “Betting Commissioner” James J. Carroll, an
unwilling and television-shy witness in the final days of our Senate
Crime Committee hearings, “is a biological necessity for certain
types . . . the quality that gives substance to their day dreams."
No varieties of this “biological
necessity” were overlooked by the
mobs—slot machines, punchboards,
cards, dice, roulette, wagers on
Sporting events and the “numbers”
racket. But the big killing came
when they successfully penetrated
illegal bookmaking on horse races.
Thereby, a vast and corrupting new
industry—the gang-dominated wire
service—was born.
• • •
The colossus of the racing news
industry today is an organization
known as Continental Press service,
a virtual monopoly.
From Arthur M. (Mickey) Mc
Bride, of Cleveland, Ohio, and his
bald, seemingly disingenuous broth
er-in-law, Tom Kelly, of Chicago,
both of whom were unhappy wit
nesses, we obtained a remarkable
biography of Continental press.
McBride insists he started Con
tinental on a modest $20,000 bank
roll purely out of sentiment and
good will to provide a job for his
brother-in-law, Kelly.
The new wire service set up elabo
rate precautions. Instead of selling
“news” direct to bookies, Conti
nental set up “regional distributors”
to whom it sold its service. Conti
nental would gather the racing news
through an elaborate nationwide
system and would telegraph this in
formation to its distributors. Mc
Bride himself admitted that Conti
nental got the news out of the race
tracks “by either going in and pay
ing a concession price, or taking it
out otherwise.” The “otherwise” in
cluded use of spies with high pow
ered telescopes and “wig-wag”
men.
The distributees, in turn, pass
ed the news for a price to thousands
of illegal bookies all over the coun
try. Cpntinental was not supposed
to know anything about that. “I,”
McBride irrelevantly remarked,
“never have been in a bookmaking
joint in 25 years.” Finally Mickey
wearily acknowledged the obvious
fact that “certainly” Continental’s
news “eventually got to bookmak
ers.”
We isolated instances where
parties, supposedly operating as in
dependent distributors, a c t u al 1 y
kept only small salaries or percent
ages and remitted thousands of dol
lars—the bulk of their profits—to
Continental.
• • •
From Mickey McBride, who ap
peared at the Cleveland hearings
in a suit of “race-track plaid,”
hand-painted suspenders and a very
sincere bow tie, we elicited the
tortuous story of how Continental’s
ownership shifted back and forth be
tween the McBrides and the Ragen
family. Mickey himself never
wanted to run Continental, so in the
beginning he went to an old col
league, the late James M. Ragen
Sr., and asked him if he would
take over. In 1942 McBride said
he sold out to Ragen’s son, James
M. Ragen Jr. The following year
Ragen Sr. took over and put pres
sure on Mickey to return to the
business. '
Mickey compromised by buying
one-third of Continental back fqr
$50,000 as an investment for his
son, Eddie, then 19 years old.
• • •
Ragen's difficulties with the Cap-
one syndicate actually went back a
number of years, but in 1946 he ran
head-on into trouble. The Chicago-
Capone mob had been eyeing Conti
nental Press; if they could seize
control it not only would provide
them with a Golconda of profits
but would be a source of jobs for
literally thousands of hoodlums.
• • •
The mob’s initial approach was
in the form of a conciliatory out
thoroughly dishonest proposition, ad
vanced by three leading syndicate
members, Jake (Greasy Thumb)
Guzik, Tony (The Enforcer) Ac-
cardo and Murray (The Camel)
Humphreys. The mob sweetly in
sisted that all it wanted to do was
to cut itself in and help build up
the business.
As Ragen saw tl\e picture, how
ever, once the mob had moved in
and had gained sufficient experience
to dispense with his “know-how,”
he would be found some morning
dead in an alley.
As part of the incredible scen-
CIT1ZENS AROUSED
ario, according to Ragen, the Ca
pone interests used Dan Serritella
as their emissary. Serritella had
served in the Illinois legislature as
a senator for 12 years, during part
of which period he also was engaged
in the business of publishing a
scratch sheet. He had been a friend
and business associate of Ragen’s
enemy. Greasy Thumb Guzik, and
Serrietella told us how Guzik had
advanced him $15,000 to $20,000 to
start up one scratch sheet venture
in which they shared the profits
50-50.
At the outset, the Capone mob
countered Ragen’s opposition by
starting a rival wire service called
Trans-American Publishing and
News Service. Through its superior
gang connections, Trans-American
made deep inroads into Continen
tal’s business. In Chicago opposi
tion to Continental was sparked
by the mob’s wire outlet, a mysteri
ous outfit known as “R&H.”
• • *
A less stubborn man might have
let the Capone mob take over the
nationwide bookie racket. Possibly,
if he had, Ragen would have b$6a
alive today. But he kept on fighting
until, on June 24, 1946, just as he
had predicted, he was ambushed
and mowed down with shotgun
blasts on a Chicago street.
Ragen’s murder is one of Chi
cago’s many unsolved gang slay
ings, just as is the more recent
murder of former Police Lieutenant
William Drury. Drury was shot to
death the evening before he was to
have talked to an investigator about
appearing as a witness before the
committee.
• • •
Then suddenly in May 1947, Mic
key McBride came back into the
picture. He bought Continental back
from the Ragen interests. The price
was $370,000 payable over a period
of 10 years, and the business was to
be the sole and exclusive property
of young Eddie.
With the Ragens gone, Trans-
American folded the very next
month, and peace was restored. All
the bitterness apparently was for
gotten and many of the old Trans-
American-Capone crowd came right
in with ContinentaL
Mickey McBride and all the Con
tinental crowd vigorously and em
phatically deny the existence of any
deals or connections whatsoever
with the Capone-Chicago syndicate,
but evidence before the committee
indicates otherwise.
R&H even fixed its own rate for
such service at $750 a week, which,
by comparison % with amounts
charged other non-mob outfits for
similar service, was a ridiculously
low figure.
But finally McBride agreed that
“the seniors did all the talking” and
that young Eddie, at least, “didn’t
open his mouth at any time.”
The committee reported to the
senate:
“From the preponderance of evi
dence ... a conclusion is warranted
that the Continental Press service
is controlled not by Edward Mc
Bride . . . but by the gangsters who
constitute the Capone syndicate ...
that Arthur McBride is deliberately
making ^ gift to the Mafi-affiliated
Capone mob in Chicago of about
$4,000*8 week, which represents the
difference in price paid by the Ca
pone-controlled R&H service and
the price paid by their competitors
in the same city.” In my opinion,
the way to cope with the problem
would be a bill placing a legal
straitjacket on Continental and on
any other wire services that might
spring up.
• • •
In 1942 when California feared air.
attack by the Japanese, a vital
telegraph circuit which served an
air force field was knocked out by
a plane crash. Continental Presft
managed to get its wire service for
the gamblers resumed in something
like 15 minutes. It took the Fourth
army, responsible for the defense of
the entire West Coast, something
like three hours.
Next week: Chicago: The Heri
tage of A) Capone.
Condensed from the book, ”Crime In
America,” by Estes Kefauver. Cpr. 1951.
Pub. by Doubleday. Inc. Dist. General
Features Corp.—WNU.
Indictment of Newsmen Stirs People
LAKE CHARLES, La.—The in
dictment of five newspapermen has
aroused public indignation and al
most doubled the membership of
the Peoples Action Group, which
fights gambling and corruption.
Thomas B. Shearman, publisher
of the Lake Charles American
Press and four assistants are
charged with defaming a trio of
gamblers and 16 parish (county)
officials. The peoples group had at
tempted to get an indictment
against the parish sheriff on
charges of malfeasance, but the
Grand Jury returned an indictment
against the newsmen instead.
Senator Kefauver commented: “I
certainly hope the citizens of Lou
isiana will rise to the defense of
these courageous men to expose the
gambling situation in their Parish.”
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