Monday, Jul. 24, 1950
Big Show In Miami
Investigations into illegal gambling in the U.S. tend to be as stylized as burlesque shows. But some are more entertaining than others; there have been few finer examples of the phenomenon than the Senate hearings on Florida crime, conducted in Miami last week by Tennessee's agile Senator Estes Kefauver. The Senator and his investigators managed to half unveil such titillating glimpses of skulduggery and to inspire such righteously innocent denials that even hardened Miamians seemed fascinated.
This was no mean tribute. Few states have done as much as Florida in demonstrating how smoothly the law can be thwarted--Miami, Jacksonville, Fort Lauderdale and West Palm Beach usually provide every kind of gambling during the winter season and have attracted throngs of money-heavy racketeers as residents. Still, it was interesting to discover that Florida's handsome Governor Fuller Warren had been elected to office on a campaign fund of no less than $462,000--$154,000 of it provided (in spite of a law forbidding political contributions by racetrack operators) by a dog-track owner named William H. Johnston.
Friendly Gesture. The sheriff of Dade County (Miami), an ex-prize fighter and traffic cop named Jimmy Sullivan, also gave a fine performance. He appeared before the committee flanked by a lawyer and a tax accountant and declared 1) that his assets had increased from $2,500 in 1944 (when he was elected sheriff) to $70,000 in 1948, and 2) that after federal income-tax authorities had questioned some of his returns, he had amended them to include $50,000 more income than showed on the originals. But he explained that his increase in wealth had come only from profits on real estate and "little deals." He explained his troubles with the income tax as easily: an "expert" named Hardin R. McQueen had just made some mistakes.
Sullivan admitted that, as a friendly gesture, he had given an honorary sheriff's card to a man representing Bookmaker Frank Erickson in Miami Beach. A more embarrassing aspect of his relations with gamblers was brought up by two of his former deputies. One of them, Richard Howden, told the investigators that the other, one Tom ("Sailor") Burke, had been the sheriff's "bag man," had delivered $36,000 in payoff money to the sheriff's wife and had gotten signed receipts for the boodle. Burke, however, heatedly denied the charge. That sort of thing, he strongly implied, was unlawful.
Another sheriff, Walter Clark of Broward County, admitted that most of his income came from a one-third interest in a firm which engaged in a numbers game and held federal licenses for pinball and slot machines. But, he piously protested, he always thought it handled only jukeboxes and cigarette-vending machines.
Little Helper. As virtually everybody in Florida knows--and as witnesses testified--gambling in Broward County is controlled by New York and New Jersey gangs, and bookmaking in Miami Beach by the S & G Syndicate, which also has investments in valuable beach property. But the hearing produced an interesting tale about the S & G, which was a local racket until it began having certain difficulties last year.
One of the governor's investigators, for instance, began harassing S & G bookies. A little later the S & G--which did a $26,500,000 business in 1948--lost its racing wire service. At this point, without explanation, the syndicate got a new partner, Harry Russell, an associate of Chicago's Capone gang. After that there was no more trouble.
The committee was naturally anxious to ask Harry Russell to explain his panacea, and did its best to subpoena him. But Harry just couldn't be found; he sent word that he remembered what happened to Kansas City Gangster Charles Binaggio, who was killed after talking to the authorities. Neither could the other partners in the S & G be found, nor Dog Track Magnate William H. Johnston, the man who gave the governor the 150 Gs. Like all good things, crime investigation could be carried a little too far.
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