Federal judge to 8 months in jail for contempt of court. The CHAIRMAN. 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. He has been in charge and control of some of the largest gambling establishments in Lake and Cook Counties. Mr. PETERSON. Taran was finally located in Brainerd, Minn. De Lordo was named by James Egan, the payoff man in the gang killing of Martin (Sonny Boy) Quirk, which killing occurred on September 18, 1943, as having been implicated with John Joseph Williams and others in the killing. Later Fred Morelli once Cooney's bookkeeper, then became head of Century Music Co. Senator WILEY. I would have to check that, however. Wide open gambling operations have taken place at this establishment for many years. Do you call that the agent in charge? Mr. PETERSON. Released on parole in 1947. He was also one of those arrested in 1935 as a suspect in the murder of Thomas Malloy, boss of the motion-pictures operators' union in Chicago. In addition, Fusco admits ownership of three other wholesale distributing houses for liquor. Its no wonder why FBI agent William F. Roemer Jr. called Accardo the genuine godfather.. Frank Diamond was sentenced to the penitentiary in 1943. Up until 1941 his name appeared as one of the stock-holders of some of the dog tracks down there. Capone had already established himself as a tough gunman with the Five Points gang of New York City. I wish it were possible to have copies of these notes for the benefit of the press. In fact, information has been received that after the $70,000 fire at the Tavern Distributing, Inc., records and appliance division in Miami, on June 15, 1947, Anthony De Lordo actually tried to contact Sam Taran by telephone. Born Antonino Leonardo Accardo on April 28, 1906, the future kingpin grew up in the Little Sicily area of Chicago. Torrio even actually envisioned a vice monopoly for the entire county. He is one of the big-shot policy racketeers on Chicago's South Side. Some of these fellows have been city office holders in Cicero? Should rap lyrics be used as evidence in court? This has to do with allegedly setting up this racing news service to take over the old Annenberg regime. There was a two-month reprieve from the bloodshed before the final two members of Mendells crew, Bobby Hertogs and Johnny McDonald, met their own gruesome fate. It is claimed that he graduated from the school of architects and engineering at the university. The operation of the gang has been extended to many places in the United States, and important alliances have been made from time to time with the powerful underworld leaders in other parts of the country, particularly with members of the so-called Frank Costello gang in New York. Nicholas De Grazia, 121 Twenty-second Avenue, Melrose Park, Ill., has been another important figure in the Capone syndicate's gambling operations. O'Hara was formerly associated with Thomas Malloy in the moving-picture operators union. Hunt was wounded. At that meeting the American Municipal Association passed by unanimous vote a resolution stating that they felt that this was a matter in which in some instances they needed the cooperation of the Federal Government in helping them in their law-enforcement problems, and they asked for an investigation by some Federal agency or by Congress. On November 20, 1930, he was found guilty and sentenced to a term of 5 years in the Federal penitentiary and fined $7,500. though he was picked up in Miami Beach in 1929 on vagrancy charges while playing golf with Al Capone and Jack McGurn. He admitted he operated a pool hall owned by his brother and thathewas a poker dealer. Joseph Peskin, alias Sugar Joe Peskin, 7625 Essex Avenue, Chicago, Ill., has been associated with members of the Capone syndicate and is one of the biggest juke box operators in Chicago. Dobkin has been a betting commissioner for many years. In February 1945 he was arrested with Tony Accardo, top-ranking man of the syndicate, and one Daniel Beneduce, of 4259 Gladys Avenue, Chicago, as suspects in a kidnaping. He was indicted for kidnaping in Chicago in 1929, and that case was nol-prossed. Mr. PETERSON. In this infamous incident, four unknown men viciously gunned down seven men who worked for George Bugs Moran, Capones most notorious rival. There was also an indictment returned at that time and when the case went to trial, George McLane then took the witness stand and said he refused to testify on the ground - he exercised his privilege. Torrio had built up power for his organization of gangsters, and this was taken over by Capone and became even more powerful as time elapsed. Once Al Capones bodyguard, Tony Accardo eventually rose to the top of the Chicago Mafia. SPECIAL COMMITTEE TO INVESTIGATE Ryans right-hand man, Stevie Garcia, made it until February 2 when he popped up as trunk music at the Sheraton Hotel next to OHare International Airport. It is a civic organization. Jack Guzik's father was naturalized on November 5, 1898, at which time he was apparently 10 or 11 years of age and received his naturalization when his father became a citizen. In some instances they felt some organized gangs were attempting to take over local governments. On July 18, 1932, John Capone, then 29 years of age, was arrested with his bodyguard who at that time was Rocco Fischetti. They were later returned to the penitentiary. There is just a little bit left leading up to the background of the Capone gang here, and then perhaps that would be a good breaking off point. The CHAIRMAN. What position did you hold with the FBI when you left? Senator WILEY. However, he is a friend of Willie Heeney, one of the old time Capone syndicate operators in Cicero. That is correct. Mr. PETERSON. In 1924 he began operating the Evans Co., at 311 Curtiss Street. Tony (Big Tuna) Accardo, reputedly the longtime head of the Chicago mob and a former associate of gangster Al Capone, died Wednesday night. I believe there was testimony introduced in the congressional hearings with reference to the parole a year ago. Accardo allegedly took over as mob chief when Ricca retired in 1968, although he deferred to Ricca until he died in 1972. He had decided to appoint Joseph Ferriola as boss. But their holiday would be short lived. Rather than stepping down from a position of power, he stepped aside. In Louisiana they organized the Pelican Novelty Co. together with a number of subsidiary companies, one of which was the Bayou Novelty Co. No more ties to Accardo. Murray's first conflict with the law occurred in 1918 when he was arrested as John Humphreys on a charge of burglary. Jack Guzik was very close to Al Capone until the time he died. Following a grand jury investigation in 1943 this establishment moved to Lake County where they controlled the Vernon Country Club, one of the most elaborate establishments in that area. 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. 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. It was claimed that this territory was secured through the assistance of Frank Garnet, a son-in-law of Jack Guzik, the one-time business manager of the Capone syndicates operations. That was at the time when all this mysterious money was dumped in on Eugene Burnstein's desk in Chicago and they paid off these so-called back tax claims. But Accardo was known by his colleagues as Joe Batters, apparently out of respect for his skills with a baseball bat. They recently just built a large addition to it. He was a three-time target of the U.S. Senates permanent subcommittee on investigations. After four trials, Hunt was found not guilty on January 11, 1943. 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 is also allegedly owner of a cocktail lounge and there have also been allegations, which have not been proved, that he has an interest in a currency exchange. He allegedly owned a home at 5352 LaGorce Drive. And what better way to do that than by taking out his rage on traitors? After John Torrio left Chicago about 1929 is when Al Capone became the ruler of Chicago's underworld. What is the estimated amount of money he has in those enterprises? He was later indicted in connection with this matter, but not convicted. This indictment charged conspiracy to operate a policy game. The house did not attract any attention, which was a good thing, but at some point Accardo must've asked himself why he didn't enjoy his hard earned millions. That was a liquor association. Two persons familiar with crime. De Stefano controls a chain of retail liquor stores in which Fusco is supposed to have an interest or did have an interest. 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. I will be glad to do that when I get back. At the time of Mangano's death he was riding in a car owned by Cavaliera. He was given the nickname Big Tuna by a Chicago newspaper reporter after having his picture taken with a 400-pound tuna he caught off Florida. The CHAIRMAN. Torrio was arrested and so were numerous other individuals. Charles Fischetti is one of the most important members of the syndicate at the present time. Mr. Peterson, before you start your formal statement I thought we should have a further word about the American Municipal Association. In 1932 he was arrested at the Planters Hotel with Frank Rio, Capone's Philadelphia cellmate, Paul Ricca and Michael Costello. Senator WILEY. In recent months John Capone has been associated with Herman Kiefus, who has been very active in gambling activities on the South Side. Accardo said profits from the 'Owl Club' in Calumet City, Ill., helped pay for a Palm Springs, Calif., condo and he had $700,000 in the bank from gambling savings. During this period the Capone syndicate---. It seemed as if the group of burglars who were responsible for the grave insult had all been dealt with, but Accardo wasn't finished. Mr. PETERSON. It is quite a long statement, and it is understandable that he couldn't do it; but he did try to do it. Jack Guzik, another member of the syndicate, was the business manager of the Capone syndicate or was called such during the heyday of Al Capone's regime in Chicago. In recent months he has been living in California, I believe it is Tarzana, Calif. WASHINGTON 1950 Another man in the syndicate, Ralph Cavaliera, alias Armie, 2815 Dickens Avenue, Chicago, was a close associate of Dago Lawrence Mangano at the time of Mangano's death in 1944. Mr. Peterson, I think we will interrupt your statement at this point. The CHAIRMAN. Several years ago August Circella was one of the owners of the notorious Colony Club on Chicago's North Side. What did their tax returns show? He was known as Joe the Boss, and was head of the Italian lotteries and similar illegal activities. In October, Accardos houseboy, native Sicilian Mike Volpe, vanished weeks after testifying in front of a grand jury investigating the slayings linked to the January break-in. He was released in each of those instances. The CHAIRMAN. the trunk of his car on April 6. It would be a pretty fast mimeographing job. 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. He was 86 years old a remarkable achievement for someone who had spent most of his life in such a dangerous business. No, that was not the name. All of you remember him undoubtedly. Senator WILEY. That is the so-called Bioff-Brown case. and Louis Pokrass, and a number of others. He has been arrested with Claude Maddox as well as with Rocco De Grazio, Fred Rossi, and others. I know it is very difficult for them to follow this. The CHAIRMAN. He was picked up, arrested, following that. Interesting story, Sunshine was investing with some of the Outfit's skimmed money. Mr. PETERSON. /r/Mafia features stories, interviews, documentary and news articles about organized crime around the world. Mr. PETERSON. It begins at Cicero Boulevard or Avenue, which is about 48 blocks west. Hill at the Acapulca. Still, whenever Accardo was called to court to testify on his involvement with the Outfit, he firmly denied any and all allegations. Accardo was vacationing in California at the time of the robbery. He was a brothel house owner, and I think he was killed around 1930. He became the operator of a restaurant known as Colosimo's, which was located at 2136 South Wabash Avenue. Even as he got older, he continued to insist that he was a beer salesman and nothing more. Arrested in this raid were John Patton, Robert Larris McCullough, Joe Fusco, Frank Nitti, and others. Evans was born in November 1898 in St. Louis, Mo. What did you say they did to the movie industry? He founded and runs The Gangster Report (www.gangsterreport.com) newsmagazine website. Mr. Peterson, will you continue with your testimony, please? On October 1, 1926, he was indicted, together with Al Capone, the mayor and chief of police of Cicero, Ill., and many others. Mr. Peterson, at that point, that is a statement of fact, and how do you know that? Ricca apparently was born in Naples, Italy, about 1899. And by the 1940s, the "Capone mob" controlled Chicago. It was charged by the State's attorney's office in Chicago on August 21, 1941, that Pat Manno together with the others that I mentioned a few moments ago had attempted to loot or actually spent a large amount of that $910,000 from the Retail Clerks Protective Association. I do not seem to have it with me. All right, Mr. Peterson, if you will carry on. The United States Government was insisting that this $50,000 be included in Humphreys' income-tax returns. Early in 1950 the Los Angeles Police Department was seeking Jack I. Dragna, one of the most notorious gangsters on the west coast. Bettmann/Contributor/Getty ImagesA young Tony Accardo in 1930, when he was still moving up in the ranks of the mob. He was also the husband of his wife Clarice, with whom he had two daughters and two adopted sons. Among the names contained in this book was that of Tony Accardo, together with his residence address in River Forest, Ill. I have the address in some of my other notes here. Accardo would turn out to be a much sharper boss than the man who made him a member at age twenty. Dandy Phil Kastel and Frank Costello were also engaged in large-scale slot-machine activities. His company is known as the Universal Automatic Music Corp., 1506 East Sixty-seventh Street, Chicago, Ill. During the prohibition era Peskin operated the J. P. Food Distributors, Inc., 4446 South State Street, which was ostensibly a wholesale grocery but actually was used to buy corn sugar and other products needed in the manufacture of alcohol. That covers it I think, mostly. The CHAIRMAN. That was prior to the time they were released from the penitentiary. Mr. PETERSON. Apparently pleased with his work, Capone gave him the nickname Joe Batters.. On April 7, 1925, the press reported a raid on the headquarters of the Torrio-Capone gang, which was then located at 2146 South Michigan Boulevard. We reach Al Capone's brothers, Ralph, John, Albert, and Matthew - Ralph and John have been the most active insofar as racketeering activities are concerned. Following the 1924 election, Cicero became the headquarters for the Torrio-Capone combination, and an influence of the members of this organization has been strong until the present time. On June 7, 1934, when he was arrested, he was in the company of Matt Capone, Ralph Capone, brothers of Al, and Denis Cooney, who was a powerful figure in the Capone syndicate. Mr. PETERSON. He was tried and acquitted of that charge and was represented by Rothstein's attorney. Before that, St. Louis 1 year, before that Milwaukee 2 years, and then I worked in Chicago for 2 years, in New York City, Florida, Philadelphia. Email blog@themobmuseum.org. Tony Accardo's brother, Martin L. Accardo, has recently resided at 1217 Granada Boulevard, Coral Gables, Fla. 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. About two decades ago he was a member of the notorious "42 Gang." Once in 1933 he received a sentence of 1 year in the House of Correction on a concealed weapons charge. I have the one extra copy that I gave to your committee here. He has been considered one of the most important syndicate members in Cicero for many years. 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. Pat Manno, alias Patrick J. Manning, has been in the policy racket in Chicago for many years. 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. With the distribution of alcohol once again legal, the Outfit had to find a new source of income. The CHAIRMAN. "On April 19, 1961, confidential informant T-6 advised" the FBI "that the Chicago hoodlum faction under Tony Accardo is feuding with the Balistrieri faction in Milwaukee," according to the . ), (The committee reconvened at 2: 30 p. m. pursuant to the taking of the noon recess.). He is a felon, having been sentenced to the Federal penitentiary to serve 1 1/2 years for violation of the National Prohibition Act in 1932. I think he has a filling station out there. I think it was 2 or 3 years ago. Theres nobody else left now.. As a sidelight, from about 1922 to 1931 Joe Masseri was the head of the underworld activities of what is frequently called the Mafia. Sometime after 1933 Peskin entered the juke-box business. It is understood that. 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. They settled for around $100,000. In fact, it was brought out that Heeney was one of the men who handled the contact with State Senator Brady and. 4 or 5 months in connection with the reorganization. Without any question he is one of the leading members of the syndicate. Is that the name of the syndicate? Matter of fact, in 1951 he had just bought his dream house. Mr. PETERSON. You say that happened in Wisconsin? He was rejected for military service. When I left the FBI, I was in charge of the Boston office. Claude Maddox, a public enemy and the member of the Capone syndicate, is also allegedly associated with Aiuppa in the Taylor Co. I mentioned a short while ago the records recovered by the Los Angeles Police with reference to Jack I. Dragna and his lieutenant, Mo Mo Adamo. Thank you very much, Mr. Peterson. The CHAIRMAN. But the bodies kept dropping. In 1943 Ricca had a suit pending against the tenant and owner of a downtown building for personal injuries suffered during an elevator fall. The real beginning, of course, is much earlier, but many of the most important criminal gangs operating throughout the country today stemmed from the major gangs operating in Chicago and New York City, in particular, about 30 years. This is not allowed by the union, and with the union's help I have gotten back all 50 of the 50 spots they took. Terms of Service, 2023Gangsters Inc. - www.gangstersinc.org . He was implicated in the million-dollar movie-extortion case along with the other Capone gangsters. I might say to you, Mr. Peterson, that the Director of the FBI, Mr. Hoover, and Mr. Nichols, the Assistant Director, have spoken very highly of your work with the Federal Bureau of Investigation and also with the Chicago Crime Commission. They settled it for about 20 cents on the dollar. I am giving this from memory as far as what they testified to, but that is my recollection. It appears that he did proceed to New York City and was grilled by the grand jury in connection with that case. The CHAIRMAN. Mr. Peterson, we will recess at about 12:25 if you can find some place where you can stop. They were convicted in Federal court in New York City in 1943. It happened 40 years ago this month, in the early morning hours of January 6, 1978. Mr. PETERSON. Claude Maddox has been a prominent member of the syndicate for many years. 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. For the Outfit leader the house was a way of showing Chicago he was top dog, and had the wealth to prove it. He was 86. By the late 1940s the "Capone mob" was called The Outfit, and was run by Antonino "Joe Batters" Accardo (photo right). Time goes fast. Mr. PETERSON. Epstein was formerly the head of a group usually referred to as Stern & Horwick, which maintained gambling offices at 10 North Clark Street and 720 North Wabash Avenue. Accardo didn't need the money the drugs provided, he had enough. Maddox originated from St. Louis, Mo., where he was convicted for burglary on August 5, 1919. 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. A short time later Ralph O'Hara became head of the Motion Picture Operators Union of Chicago, Local 110. William Roemer, a retired FBI agent who tracked Accardos career for years, said recently he could never charge Accardo but believed he was one of the triggermen in the St. Valentines Day massacre in Chicago in 1929. That is right. Senator WILEY. The couple had four children together, including two adopted sons and two biological daughters. Named in the injunction were Louis Romano, president of the union, Frank Nitti, Murray Humphreys, Louis "Little New York" Campagna, Fred Evans, and Paul Ricca. In 1931 the crime commission named him as a public enemy. Were there subsequent developments? Many of them remained in the same field following prohibition. Mr. PETERSON. He had to eliminate two more men, men who could tie him to the killings of the burglars. In 1932 it was alleged that Humphreys and others were attempting to dominate the teamsters union. For a while, Frank Nitti stepped up to take Capones place as boss. Heres a list, Before and after photos from space show storms effect on California reservoirs, 19 cafes that make L.A. a world-class coffee destination, Stationmaster arrested after train collision in Greece kills at least 36, Ohios senators to unveil rail safety bill in wake of East Palestine derailment, After months of pounding, Ukrainian official says military may pull back from Bakhmut, Elizabeth Holmes cites her new baby as a reason she should avoid prison for Theranos scam, What time is it on the moon? But he was released on his own recognizance. In fact, as far back as 1931 he testified in connection with a case that he was a commission man and that when business was good he handled from $25,000 to $50,000 a day in bets. Mr. PETERSON. Mr. PETERSON. In connection with the Federal parole of Paul Ricca, "Little New York" Campagna, Charles Gioe, and Phil D'Andrea, Accardo was indicted in Federal court in Chicago. No. Information was received some years ago that Evans was one of several hoodlums who were attempting to gain control of the dry-cleaning industry. Pat Manno also has listed as his permanent address 1439 North Franklin Street, River Forest, Ill. Lawrence Imburgio, alias Hindu, is the brother of Joseph Imburgio Bulger, former mayor of Melrose Park, Ill. You will recall that Bulger's name was used by Tony Accardo in gaining entrance to the Federal penitentiary to visit Capone mobsters whose parole created a national sensation. And as he distanced himself from the Outfit, Accardo began to enjoy the spoils of his job. Before long, the mob was wealthier than it had been in years. They changed the ordinance to read differently than it had before, which took his control over the chief of police. Mr. PETERSON. Cicero is southwest of Chicago, approximately 8 miles. Tony Accardo died on May 22, 1992, from congestive heart failure and acute respiratory failure. In 1946 it was alleged in a statement made by James M. Ragen to the State's attorney that Guzik, together with Tony Accardo and Murray Humphreys as representatives of the Capone syndicate were attempting to muscle into the Continental Press. I think that is one of the real significant points of the entire organized-crime problem. Apparently, Capone gangsters intended to kill Bugs Moran, Willie Marks, and Ted Newberry, all of whom were North Side underworld leaders. The CHAIRMAN. On October 5 his family reported him missing, and he hasn't been seen since. 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. In 1937 Haim negotiated the purchase of this J. J. Dailey & Son, Ltd., holding company of William Whitely & Co., distillers. That was before the Taft-Hartley Act, in 1943. The CHAIRMAN. 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