Monday, Dec. 01, 1930

War Between Two Worlds

Theodore Roosevelt or his like in the White House might well have been impelled long since, by sheer curiosity, to have a look at such a national phenomenon as Chicago's Alphonse ("Scarface") Capone has been allowed to become. It would have been distinctly Rooseveltian to command Capone's presence in Washington on any old pretext and settle his hash out of hand, man to man.

Such could never be the method of President Hoover. Yet last spring he did name Capone by name and though averse to "drives" of any sort by the Federal power, he did tell newsgatherers that concerted Federal action would be taken against the thriving Underworld. He said the line would be prosecution for violations of the income-tax and other (Volstead, Harrison, Mann, Dyer) Government statutes (TIME, May 19). He cited the indictment for income-tax fraud of Scarface's brother, Ralph ("Bottles") Capone, to illustrate the kind of action he meant.*

Last week in Chicago, Attorney General Mitchell's subordinates obtained another notable conviction--that of fat little Jack Guzick, Scarface Capone's "treasurer" and business brains. Next day Attorney General Mitchell described what the U. S. has been and is doing about racketeers throughout the land.

The Nation. The Attorney General spoke in broad terms. On both seaboards and along the Mexican border, he said, customs and narcotic squads have been increased, reorganized. In all racket-ridden cities investigators are plodding away at gangsters' bank-accounts and records. A special agent is in Chicago coordinating the work of Prohibition, Narcotics and Industrial Alcohol Bureaus, the Immigration, Coast Guard and Customs Services. All this might have seemed nebulous without the Guzick conviction to give it point. And the same day Guzick was indicted, mounted Customs men had slain two smuggling gangsters, wounded another, in Texas.

In Guzick's case, the Government proved he had made $1,044,333 in three years, of which he had failed to declare $229,000 in his income tax returns. The Internal Revenue agent in Chicago an nounced last week that Scarface's own bank-accounts, and records of his nu merous gambling-joints, nightclubs, dog tracks, were being searched diligently; his indictment was forecast before spring. Law & Order did not know where Scarface was last week. One report positively located him, heavily guarded, in a North Side (enemy) Chicago restaurant. An other had him sojourning on a California ranch, where he spoke to newsgatherers: "Don't make public where this ranch is . . . Federal raps are hard to beat."

Municipal, State and civic anti-crime drives seemed last week to reflect the present temper of the Government.

In Chicago, Gangsters Richard Michael Sullivan and Frank Bell were sentenced to death by a jury. They face electrocution for the murder of Christ Patras, which Bell's recent "confession" linked to the Lingle and Zuta slayings (TIME, Oct. 13). Another jury upheld the first test vagrancy warrant issued against 26 "public enemies'' by Judge John H. Lyle.

This jury convicted James ("Fur") Sammons, oldtime Moran-Aiello gangster, greatly pleasing the Judge. He, curly-haired, grinning, loud-voiced, obtained much publicity last summer by resurrecting a law of 1874 which provides that anyone unable to earn an honest living may be sentenced to six months on the rockpile. Although not endorsed by the Bar Association, Judge Lyle was easily re-elected last month. As accused under-worldlings are brought before him, he violently lectures them, brusquely sets their bail at $10,000 or more. He it was who detained Jack Guzick for Federal trial, and Jack's brother Harry has also been indicted. Sample of Judge Lyle's talk: "I don't get a kick out of punishing people, but I do relish the opportunity of being a judge when two such men as you, living off vice and crime, fattening on blood-money, are brought before me!"

Last week, radiant at the prospect of getting more & more of the 26 Enemies before him, Judge Lyle ordered Sammons held in $150,000 bond for Federal prosecution on hijacking charges. He cancelled all bail for Gang Leader Frank Nitti.

Acting Police Commissioner John H. Alcock last week summoned, to a cooperation meeting at the University of Chicago, all police officials presiding within a radius of 50 mi. of the Loop.

New York. New York City's rackets and gunplay are easily in a class with Chicago's. But not until this month have Manhattan newspapers given local crime the publicity Chicago's press usually affords it. The New York Telegram, after a survey, reported that there had been 89 shootings in the city within one month. Aroused by this and other testimony, District Attorney Thomas C. T. Grain last week called a meeting of 50 such civic leaders as Owen D. Young, Seward Prosser, Thomas W. Lamont, John Davison Rockefeller Jr. Forty gentlemen attended, formed what newsmen likened to an oldtime frontier vigilance committee. A call was issued for complaints from racket victims. These poured in immediately, revealing gang levies on trucking, music, milk, funerals, laundries, freight, cleaning & dyeing, et al.

Simultaneously in two courts, New York's most colorful and wealthiest alleged racketeer--long, loose-jointed, big-mouthed Larry Fay, indicted a year ago for collecting "dues" from milk dealers (TIME, Oct. 29, 1929)--came into renewed prominence. He was not at either session in person. The Appellate Division, investigating corrupt city magistrates (TIME, Aug. 25), heard tell of a little black notebook in which Fay once kept useful telephone numbers. Hearings on milk rackets more recent than that for which Fay was indicted chanced upon evidence that he may be still the milk gangs' overlord. But observers thought it unlikely that he, in the face of one indictment, would return to his milk game while he still has sources of revenue like his nightclubs, his string of taxicabs, his assembly plant for high-class taxicabs which he sells to independent chauffeurs.

*Bottles, sentenced to jail, appealed and last week was at large under bond.

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