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The American Mafia - Kefauver Report #3. U. S. Senate Special Committeeto Investigate Organized Crimein Interstate Commerce. ND CONGRESS1st Session. REPORTNo. 3. 07. SENATETHIRD INTERIM REPORT (Part B)OF THE SPECIAL COMMITTEETO INVESTIGATE ORGANIZED CRIMEIN INTERSTATE COMMERCEPURSUANT TOS. Congress)MAY 1 (legislative day, APRIL 1. Ordered to be printed.

UNITED STATES GOVERNMENT PRINTING OFFICE 7. WASHINGTON 1. 95. SPECIAL COMMITTEE TO INVESTIGATEORGANIZED CRIME IN INTERSTATE COMMERCE(PURSUANT TO S. ST CONG.)ESTES KEFAUVER, Tennessee, Chairman. HERBERT R. O'CONOR, Maryland.

CHARLES W. TOBEY, New Hampshire. LESTER C. HUNT, Wyoming. ALEXANDER WILEY Wisconsin. RUDOLPH HALLEY, Chief Counsel. ALFRED M. KLEIN, Associate Counsel.

DOWNEY RICE, Associate Counsel GEORGE S. ROBINSON, Associate Counsel. JOHN L. BURLING, Associate Counsel. JOSEPH L. NELLIS, Associate Counsel. HAROLD G. ROBINSON, Chief Investigator. The committee wishes to express its appreciation to Judge Morris Ploscowe, of New York City, and the Commission on Organized crime of the American Bar Association, of which Robert P. Patterson is chairman, for their valuable assistance in the preparation of this report.

CONTENTS Page. . Conclusions. Recommendations. 5II. Introduction. 20  Acknowledgments of appreciation. III. Suggestions for action by State and local governments. IV. Louis, Mo. 4. Philadelphia, Pa.

Chicago, Ill. 5. 0  Tampa, Fla. Cleveland, Ohio. 67  Detroit, Mich. Analysis of the city stories:   Syndication of crime and the Mafia. The role of the wire service in organized crime. Syndicated basketball, football, and baseball betting.

Comeback money. 16. The narcotics traffic. Infiltration of racketeers into legitimate business. Breakdown of enforcement machinery. Official corruption and connivance. Public responsibility.

VI. Committee accomplishments. VII. Should gambling be legalized? The numbers are shown above to provide a reference to the original printed report. Because it was especially long, this report was divided into two web sections.

This is Part B. 3. SENATEContinued from Part A.

NEW ORLEANSLouisiana presents a complete case history on how national gambling and racketeering elements align themselves with local operators in a metropolitan area, Mayor De. Lesseps S. Morrison told the committee at its first open hearing in New Orleans. Information offered by Mayor Morrison, businessmen, ministers, other citizens, and local law- enforcement officials, supplemented by the reluctant testimony of a parade of gamblers, wire- service and slot- machine operators, and narcotics peddlers, traced for the committee the nature, extent, and history of this alliance. The activities of organized crime covered by the committee in this area were mainly four: Slot- machine operation, the conduct of gambling casinos of varying degrees of luxury, the extensive wire services which supported the heel bookmaking operations throughout the area, and the narcotics traffic.

The interstate nature of all four activities was made perfectly clear: They made extensive use of equipment or supplies brought in from the outside on common carriers. The slot- machine story. Huey Long's welcome to Costello and his slot machines when they were banished from New York gave the impetus to the present alignment of interstate and local operators in slot machines, gambling houses, bookmaking, and related activities, Mayor Morrison testified.

They continued to use the city as a storage and distribution point until, in 1. Louisiana Mint Co., and confiscated 1,0. Bosch's explanation hinted that all these machines were not operating legally. Bernard Parish gave similar testimony concerning the wide- open operation of slot machines in their parishes. Questioned about where he bought his machines, Kastel refused to confirm that they came from Mills Bros.

The gambling casinos. The parishes of Jefferson and St. Bernard, Mayor Morrison told the committee, have one of America's largest concentrations of gambling houses, wide open in violation of the law. Typical of the swank casinos was the Club Forest, whose activities early in 1. It had a casino, open to the public for day and night operation. The daytime operation included the .

The club paid $3. The night operation included a keno game, six roulette wheels, small dice games, four tables of blackjack, from two to five tables for the big dice game. If they ran out of money they could cash checks or get loans on their jewelry. Ghost Son Full Movie In English more. This information was elicited from underlings and the records they brought in. Scherling, Gonzales Azcona, Lawrence Luke, and Vic Gallo, remained in hiding throughout the investigation.

Equally elaborate and boasting in addition expensive night- club entertainment was the Beverly Club establishment opened in the same parish late in 1. Kastel and Costello with a refuge for their New Orleans enterprises. His original partners, Kastel told the committee, were Costello, A. Rickefors, from whom he first rented and later bought the grounds and building, Carlos Marcello, and Lansky. Bernard recognized the names of half a dozen others. The wire services. With an important race track in the area, with handbooks running openly throughout the parishes, and with horse rooms figuring substantially in the activities of the luxurious gambling casinos, New Orleans was an important focal point for the wire services of the Continental Press Service.

Fogarty, owner with his son of the Daily Sports News, had been publishing racing results and forms in New Orleans for nearly 3. Mayor Morrison testified that it was over some of these wires that his police department found the only direct service to bookmakers in New Orleans after the two raids. For the rest, bookmakers in New Orleans as in the outlying parishes relied on getting their information and placing their bets through telephones which connected with the horse rooms and bookie parlors serviced by these wires. The narcotics traffic.

From Thomas Mc. Guire, agent in charge of the Bureau of Narcotics in New Orleans, the committee learned that the drug traffic here ranked in importance with that of other metropolitan port areas. Any place which operates wide open, Mc. Guire said, tolerating prostitution, gambling, and so forth, is the perfect field for narcotic peddlers who are frequently involved in other types of rackets. The sheriff of Jefferson Parish minimized the dope traffic in his own jurisdiction. The committee had information that Carlos and his brother Anthony owned a boat used in running narcotics into the port of New Orleans. The importance of Carlos Marcello in New Orleans rackets. In every line of inquiry, the committee found the trail of Carlos Marcello.

Amusement Co. Presidential pardon. Also in touch with Marcello was Charles Gordon, a main cog in a national football betting syndicate.

Typical bookkeeping of gambling enterprises. Proof of long suspected juggling of figures and keeping of books which did not accurately reflect the facts was found in the New Orleans testimony of Vernile Cavalier, a former dice man and cashier at the elaborate Club Forest. Even granting the incredulous theory that many would be so bold as to hand these case hardened operators bad checks, the fact that much of the money so advanced was immediately lost by the customers at the tables without leaving the casino would render this theory of loss to the club somewhat paradoxical. The frustrated attempts of citizens' groups to get court and official action. Outside of the city of New Orleans, citizens' attempts to bring about local official action met with frustration. Dana Dawson, a pastor of a Metairie church, organized a citizens' league in Jefferson Parish to close up the gambling casinos.

James Mc. Cain, recounted that they were in the courts for 4 years. Douglas Carroll and Rev. Thomas Carruth recounted their concern about the concentration of 2.