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Behind the Gemstone Files |
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The
Skeleton Key AUTHORSHIP ALPHA-1775 GEMSTONES A B C D E F G H I J K L M N O P R S T U V W Y Z
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UPDATED
June 21, 2002 09:43 PM
Late in 1954, Onassis went into business with the Rockefellers - Laurence Rockefeller and William Zeckendorf, the real estate operator. This little partnership, or consortium, had one purpose: to buy out Howard Hughes. The idea came from Johnny Meyer, whom Onassis had hired away from Hughes earlier. When he had been with Hughes, his job was to make sure Hughes' Aircraft got its fair share of government contracts, and then some. After World War II, he was in the national spotlight when Congress demanded he substantiate some $169,666.17 spent over four years on Hughes' behalf. The money had been charged to the government as business expenses related to the contracts, but some of it had been spent to entertain some of Hollywood's most beautiful women so they, in turn, would entertain the aircraft manufacturers. After that public appearance, Onassis "stole" him away, impressed with his uninhibited aplomb. His duties for Onassis were less taxing, perhaps, for they included handling invitations to the Christina, making sure Onassis had plenty of his favorite cigars, and sharing countless evenings with him in the world's nightclubs. They became not just employer-employee, but friends, and Meyer gave Onassis lots of details about the inner workings of Hughes' operations. Onassis was impressed with Hughes, with his attitude, with his wealth and his power. Through an old friend, Spyros Skouras, Onassis learned Hughes was thinking about getting rid of everything except RKO Studios. Thus the Onassis-Rockefeller-Zeckendorf consortium was born, with Zeckendorf named as the negotiator for the group. With Meyer's help, a secret appraisal was made of Hughes' various corporations and the three men made an offer of $400 million for the Hughes Tool Co., Hughes Aircraft, Hughes brewery in Houston and several other of his interests. Zeckendorf talked to Hughes about it almost daily and at some point, Hughes spoke directly with Onassis and Rockefeller, then told Zeckendorf that, in principle, he would accept the offer. The next day, Zeckendorf was off to Hollywood, contract in hand. Hughes agreed to see him, but had suddenly changed his mind, claiming, "I never agreed, nor had any intention of selling anything to you." (8:105-6) Nov. 11, 1954 - Venture capitalist Laurence Rockefeller, real
estate tycoon William Zeckendorf, and Greek shipping magnate
Aristotle Onassis had formed a syndicate interested in
purchasing Hughes’ entire empire, and he offered $400,000,000
cash. While the trio had excluded RKO and TWA stock from the deal,
they were anxious to sign documents transferring ownership of all of
Hughes’ other companies “within days,” according to a
statement made by Spyros Skouras, president of 20th Century-Fox
studios, who had acted as an intermediary between the parties. Rockefeller and group expected that Hughes was serious, and later
statements suggested they did, they had not allowed for the Hughes
mystique. Noah Dietrich testified in deposition that it was “another fishing expedition.” Hughes never was serious
about selling anything. His whole [plan] was merely to gain
insight into what he was currently worth. And the best way to
determine that was by placing the companies in play.” On
November 11, 1954, Zeckendorf and Rockefeller flew to Los Angeles
from New York, carrying bank documents confirming the solvency of
the syndicate, and actually expected to close the deal. They were
met at the airport and taken to the Beverly Hills Hotel, where they
checked into adjacent suites on the third floor. The following day,
the tank-sized real-estate tycoon and the slim investor went by a
Hughes-provided limousine to a pre-determined parking lot where they
were met by a driver wearing a red shirt, black pants, and penny
loafers, who instructed the two men to accompany him to his waiting
car, an old Chevrolet that Zeckendorf described as “something the
Okies might have used on the trek west twenty years ago.” The
driver transported the two men to an area of town Zeckendorf
described as “about as far away from humanity as I’ve ever
been.” It was in a section of downtown Los Angeles off Central
Avenue, surrounded by warehouses and deserted factories. They
stopped in front of what appeared to be an abandoned building. It
was, in fact, the once-proud Mason Hotel, its glory faded behind termite-eaten windows and padlocked doors,
guarded by a squadron of Hughes’ drivers, “rather good-looking
men with crew cuts.” The
entrepreneurs were directed to walk up to the fourth floor, and
taken to a door at the end of a deserted hallway. There, after an
elaborate “pattern of knocks,” the door was opened and Howard
Hughes welcomed his guests into a large room, empty except for a
sagging sofa and two wooden chairs plus some rusted equipment that
resembled boilers or large wash tubs. Hughes
was wearing a soiled white shirt, dirty khaki slacks, stained canvas
shoes for the encounter that the real estate tycoon labeled “the
strangest meeting—I guess it was a meeting.” There, in the dust,
the cobwebs, and the relics from the past, the man who hated germs
and refused to shake the men’s hands calmly read through detailed
contracts which were tailored to satisfy his list of demands. After
sitting silent for over an hour, Zeckendorf finally spoke. “I think
you’ll find everything is exactly as you wanted,” he said. Hughes looked
up slowly from the stack of papers, and nodded his head. “You’re
right. Except for one thing.” Zeckendorf raised his eyebrows, as
he felt himself suck in air. “The price. You don’t know what
you’re talking about. Not enough.” “‘What is
enough?” Zeckendorf asked. “I won’t
tell you,” Hughes said. “Do you want
to sell?” “Under
certain circumstances. “‘What
circumstances?” “If the price
is right.” “What
price?” “The price
you might offer me. If it
is enough, I’ll sell.” “I’m
offering four hundred and fifty million; will you take it?” “No.” “Howard, five
hundred million. Take it
or leave it. “I’ll leave
it.” Without further explanation, Hughes rose and walked toward
Zeckendorf, calmly handed him the unsigned contract and left the
room. Zeckendorf and Rockefeller were stunned. Zeckendorf moved from
his chair, and rushed as fast as his over-weight, swollen legs could
to catch up with Hughes, only to see the dust from an old Chevrolet
leaving the parking lot as he reached the threshold of the landing.
There, in the filth of what Zeckendorf described as a
“flophouse,” he watched as Hughes’ chauffeur opened the rear
door of the old car and stood at attention as if this sort of
thing happened every day. The following
morning, Zeckendorf gave a news conference in which he
labeled the failure of the deal as due to “a completely
unpardonable, unilateral and unconscionable reversal on the part
of Howard Hughes.” William
Zeckendorf engaged in a real-life game of Monopoly during his
career. Among the properties he bought or sold were the site of
the United Nations, the Chrysler Building and the What happened literally overnight? Hughes' interests were intimately linked with those of the CIA, and perhaps the CIA had no intention of letting the Hughes empire become a part of Onassis' holdings. Hughes gave Zeckendorf no explanation - just sent him on his way and the matter was never brought up again. The story does, however, establish two things: (a) the Hughes-Onassis connections go deeper and farther back than Roberts presented, and (b) Onassis was doing business with the Rockefellers on things other than oil, thus giving insight into the depth and height of Onassis' connections in the political world. If he was dealing with the Rockefellers, you can bet he was doing deals with a lot of other people that have never come out, people like perhaps the Roosevelts and Kennedys. If we were to follow the Roberts scenario closely, one could make a case that Onassis' supposed kidnapping of Hughes was revenge for Hughes' earlier "double cross", but there is every indication that is not the way Onassis did business. In fact, he respected those who stood up to him and even got a big laugh out of those who sometimes conned him out of money (smaller amounts, admittedly). In this case, Onassis didn't lose anything except possibly face with Rockefeller and Zeckendorf. If that had been the case, Onassis would have struck back, if even emotionally, at the source of his bad information - Spyros Skouras. There's no sign their relationship changed because of it. Johnny Meyer himself pops in and out of the Onassis story, like a shadow. You see him, then you don't.
In fact, Nixon was bought and paid for long before 1957. "...he [Hughes] was pleased when Dwight Eisenhower was reelected to his second term in the White House for he brought with him Richard Nixon as his vice-president, and a man Hughes thought of as his." (25:241) Nixon had been involved with organized crime since his military days, when he ran an on-base gambling operation. Once he got into politics, he became a frequent guest of Meyer Lansky and was photographed with Lansky at his private residence in Cuba. Hughes, too, had been sleeping with the Mob, even though his reputation (especially in Las Vegas) was one of a person out to "run the Mob out of town." It was all a charade. Hughes depended on the Mob and they on him. Nov. 29, 1955 - The Internal Revenue Service denied Howard Hughes Medical Institute a tax-exempt status as a charity. At this point, the institute didn't even exist, except in Hughes' head. Hughes went into a deep depression only slightly eased by Noah Dietrich's employment of the Washington law firm of Hogan & Hartson. Its senior partner was Seymour Mintz, one-time IRS special attorney and the man who had hired Robert Maheu. March 1956 - Mintz finally filed a protest against the IRS decision. This roused Hughes out of bed, where he had become increasingly reclusive with his headaches, back pain and deteriorating mental state, aggravated by a severe case of syphilis he had contracted years earlier. (Hughes had developed skin blisters from the disease and scraped at them until they bled, hoping the blood would "purify" his system; this is probably what triggered his phobia about germs). His only visitor was Dr. Verne Mason, who brought him Empirin #4 with codeine. His reward: Hughes gave him the directorship of the Howard Hughes Medical Institute. Hughes started courting Florida Governor Leroy Collins, with private tours of Hughes Aircraft and private jet flights to see the sights of Los Angeles. It was Hughes' first time out of his bungalow in two weeks, and the first time off the hotel property in four months. Thus started Hughes' "purchase" of politicians. Collins publicly praised Hughes' plans for putting his medical institute in Florida. Early April 1956 - Collins was in a tight primary race with Fuller Warren. His payoff from Hughes was (at the very least) an announcement that Hughes was going to build a 30,000-acre aircraft manufacturing plant that would "far transcend in importance, payrolls and future development any industrial development now in the state." Fuller said the announcement was "strictly a hoax" designed solely "to deceive and mislead the people of Florida" into voting for Collins. Pan American, United and American Airlines, who had just placed some $1 billion worth of orders for new jets, were stunned - and terrified that Hughes had plans for a "transonic jet airliner capable of speeds and distances far in excess of anything Boeing or Douglas have in development," according to industry analysts. His rivals' equipment could be obsolete overnight. Hughes himself hadn't been buying the new jets, and his rivals wondered why. In fact, Hughes' latest obsession was a device to keep one's toenails apart so they wouldn't hit as they grew. Dec. 10, 1856 - Nixon's brother, Donald, was desperately trying to cash in on his brother's name with three restaurants that started selling "Nixonburgers." But he needed money - badly. Hughes had Noah Dietrick transfer $250,000 to Nixon's mother, Hannah, who put up a piece of property at the corner of Santa Gertrudis and Whitter Boulevards in Whitter, Calif. as collateral. It had once been the family home, but after several transformations had been turned into a Union Oil gas station. At about the same time, Dr. Verne Mason showed up at Dietrich's home and told him, "Noah, I think the time has come for you to have Howard declared incompetent." Dietrich told him to go to hell. "I am not about to play doctor," he said, and told Mason that as head of the medical institute he was better qualified to make such a move. Mason mumbled something about his $50,000 salary and unlimited expense account and shuffled out the door. When Hughes heard about it, he was stunned and immediately cleaned up his act - shaved, trimmed his toenails and took a shower. He decided it was time to get married. If he had a wife, one he could control, that might stop any traitors who might think he was going crazy. (25:242-41) Jan. 6, 1957 - He showed up on the doorstep of Kathryn Grayson looking like a suitor and feeling like a fiance. He proposed - but this time she didn't accept so quickly (as she had once before, only to be snubbed at the last minute). She said she was leaving on a concert tour the next day and they'd talk about it when she got back. Enraged, Hughes said no, they'd talk about it now. When she insisted, he slapped the hell out of her. She walked away from him and told him to leave; she never wanted to see him again. He returned to the Beverly Hills Hotel and his mood darkened. (25:242) Jan. 8, 1957 - Two days later Hughes proposed to Jean Peters. Impressed more by his "desire" to leave his wealth to medical science than by his money, she accepted. She wanted only one thing - they would live in a house together, as man and wife. Hughes said OK, but he wanted something, too - a promise she would never try to have him declared incompetent. The next day Hughes called Los Angeles tax attorney James J. Arditto to make the secret arrangements for the ceremony in Tonopah, Nevada, a small town 200 miles northwest of Las Vegas, near a farm where he had once gone into hiding with actress Billie Dove. Jan. 12, 1957 - Hughes and Peters took a TWA Constellation flight in the early morning hours, along with aides George Francom and Roy Crawford, attorney D. Martin Cook, plus a TWA pilot and co-pilot - all sworn to secrecy, and dressed in hunting clothes to perfect the deception. On the second floor of a dilapidated hotel, G. A. Johnson married Marian Evans in front of county clerk Eudora V. Meyley. "Johnson's" age was listed as 46, born June 8, 1910, a resident of Las Vegas. (Hughes was actually 51, born Sept. 24, 1905 and lived in Beverly Hills). "Marian Evans" was listed as 29, born Oct. 15, 1927 and a Los Angeles resident. (She was 30, born Oct. 1, 1926 and a resident of Bel Air). Nevada law allowed false names, but required the other facts be correct; they weren't. Their agreement to live "together as man and wife" lasted five days before Hughes returned them to the Beverly Hills Hotel - he in Room #4 and she in Room #19. Unhappy, she brought up their agreement, so he took her to a rented house in Palm Springs and tried to live out the charade as long as he could, their marriage sexless. (25:243-44) Feb. 1957 - Donald Nixon was already about to default on his loan, so Dietrich called a meeting to see what they could to do to help. Mar. 1, 1957 - With Richard Nixon's help (after learning Hughes was trying to "help" his brother out of a tight money situation, the Howard Hughes Medical Institute was suddenly reclassified as a tax-exempt charity; the IRS gave no explanation for its sudden reversal.
Actually, Hughes had already been married for three months before the alleged "Onassis kidnap scheme" (Jan. 12, 1957). This would seem to blow the whole premise of Roberts' story out of the water, if the phony marriage took place "a few days later" - after the March kidnapping. Was Roberts' own paranoia (and brain tumor) getting the better of his judgment and fact-finding ability? Or was he just mistaken in his timeline? As for Chester Davis being "Chester Cesare" or even "Cesare Davis" (I've checked it out both ways), there seems to be no evidence that Chester Davis was anyone but Chester Davis. Even finding information on Chester Davis has proven difficult. The high-powered attorney is more of a mystery than Hughes hmself. The Onassis-Hughes kidnap story has become a legend in Hollywood and was even the plot of the James Bond movie Diamonds Are Forever, which featured an evil tycoon (Blofeld) who has himself cloned and kidnaps Willard Whyte (played by Jimmy Dean) from his secretive bungalow atop one of the Las Vegas casinos. The comparison is obvious and even makes allusions to evil schemes involving gemstones (diamonds, though, not Roberts' "artificial rubies") as well as hints that the US moon landing was a hoax, set up and filmed in a Las Vegas area studio owned by "Willard Whyte." It makes for a nice movie, perhaps, but is it true? The movie angle takes up a significant portion of the book Inside the Gemstone Files, which is long on speculation and woefully short on facts. Certainly, Hughes' behavior did take a strange turn at about this same time; he was never seen again by the outside world. But a scuffle that leaves Hughes brain-damaged and whisked off to some hotel in the Bahamas? Roberts offers absolutely no proof, no evidence even - just his word that it is so. For more details, read The Disappearance of Howard Hughes.
It would be interesting for a photographic expert, such as Robert Groden who worked with the House Select Committee on Assassinations, to analyze the photographs of the known Howard Hughes to determine which photos are indeed of Hughes and which are of his various doubles, such as Wayne Rector (below).
Twelve years later, the world started to wonder if indeed Hughes was dead. In 1969, rumors were flying that Hughes was dead. Vegas' responses were numerous. "He's got a gambling license don't he? Well, he wouldn't get it without my approval. . . . I wouldn't grant a license to anybody in a deepfreeze - draw your own conclusion. We checked his signature in the F.B.I. files. Yes, yes, I have [talked to Hughes] but I'm not bragging about it; just routine business, period." - George Franklin, District Attorney of Clark County Hughes' Mormon Mafia quickly went to work to dispel those
rumors, even as they acknowledged they were widespread:
You have to consider the purchase of the hotels and
casinos as an interim step to something else, but what that
is, he hasn't yet said. And that's what they all want him to
explain: What are you going to build here? What are you
going to bring here? Why are you here? And he really doesn't
feel obliged to tell us what he has in mind until he's ready
to do so. Nor does he feel obliged to come and take a bow on
the balcony to prove he's alive. People are always asking if
he's alive. Even the lawyers said this in the TWA case. This
is what led to the phone conversation with Governor Laxalt.
Every now and then he recognizes the importance of
reestablishing that he is indeed alive. They said he gave up
TWA because he wouldn't make a court appearance, but the
fact remains that it was a propitious time to sell. He got
$86 a share and it's now at $40. Hughes gives employment to 50,000 people, but there is
nobody in it who knows everything he does - he never feeds
every bit of information to any single person. Nobody knows
the whole picture. Mrs. Hughes also stays out of the
limelight. He doesn't need the publicity and neither does
she, so why do it? Everybody in the world is interested in
Howard Hughes, and if he ever decides to make a public
appearance, I can assure you it will be a mammoth press
conference indeed." All rumors were supposedly discounted when Esquire magazine had pictures of "Hughes" on its cover stating "Howard Hughes We see you!" But was it really Hughes? The photos are taken from too far away to be of any analytical use. "Hughes" spots the photographer and his bodyguard, who had been lounging by the pool ogling the girls, jumps into action. This "Howard Hughes" looks a lot different from the old man photographed above (double Wayne Rector?) just three years later.
In 1957, Vito Genovese plotted an unsuccessful attempt on Costello's life. Later the same year, he was the key man behind the barbershop rubout of Anastasia. Genovese was assisted by Anastasia underling Carlo Gambino, who seized control of the Anastasia crime family, but then maneuvered against Genovese. Gambino conspired with Costello, Meyer Lansky and the exiled Luciano, all of whom had come to hate and fear Genovese's ambitions to become a new "boss of bosses."
The bullet, though, had only creased Costello's skull. When confronted in court with his alleged assailant, Vincent "the Chin" Gigante, Costello claimed he had seen nothing. But he wisely heeded the not-so-subtle message and retired from his underworld business. ("How America Met the Mob" by Jack Kelly, American Heritage, July-August 2000)
As events leading up to September showed, it was Vito Genovese who had his heart set on becoming the "boss of bosses." His lust for power led to his assassination attempt (or do we just call it a "hit"?) on Frank Costello. In 1957 Vito Genovese made an overt effort to seize overall mob leadership. he was to fail almost as ignominiously as Maranzano did, although he ended up being "taken out" by the feds rather than by bullets. In many respects Genovese, who preferred being called "Don Vito," had all the qualifications for being the boss of bosses. He was one of the most feared of the Mafia dons, killing as readily as Albert Anastasia, but possessing the cunning to plot his foes' downfall - a quality the slow-witted Anastasia did not possess. As much as any single person, he can be credited with keeping the Mafia in the narcotics business, a move that some other mafiosi, such as Frank Costello and, despite the contentions of federal narcotics authorities, Lucky Luciano, at times strongly opposed. Genovese started out in Luciano's shadow in the 1920s and in the course of knocking off many rivals rose to the top with Lucky. After World War II he started a murder campaign to gain new status for himself, with Luciano in exile in Italy. He is known to have ordered the deaths of Willie Moretti in 1951, Steve Franse in 1953, and Albert Anastasia in 1957. And he was the obvious mastermind behind the attempt on the life of Frank Costello, which eventually led to Costello's retirement. This bloodbath, instigated by Genovese, was the reason for the Apalachin meeting, where he planned to announce that he was the "new boss." ("Meet the new boss, same as the old boss.") Where Bruce Roberts came up with substituting the name Aristotle Onassis for Vito Genovese, we will never know. There certainly are occasions where Roberts has confused names (such as confusing John Meier for John Meyer among the Onassis-Hughes lieutenants), but confusing Genovese with Onassis is far beyond just a simple identify error. Here are the facts, as we know them, on what happened at Apalachin - and why. Nov. 13, 1957: As Sam Giancana's brother, Chuck, and his wife, Anne Marie, sat down to catch the evening news with cake and coffee, they were amazed to see what Joseph Amato of the Bureau of Narcotics had told the McClellan Committee earlier that day: "We believe there does exist ... a society, loosely organized, for the specific purpose of smuggling narcotics and committing other crimes. ... It has its core in Italy and it is nationwide. In fact, international." "Oh, my God!" Anne Marie exclaimed. She looked at Chuck and asked, "Is that true?" "No! Mafia? What the hell is that? It's just a name some government guys made up, that's all." At that moment, his brother, Sam, was on his way to the New York Apalachin meeting. (1:351) Nov. 14, 1957: The gathering was at the 150-acre estate of Joe Barbara in Apalachin, NY. That same day, a New York state police and federal Treasury Department raided the place and netted a dozen union officials, one Buffalo civic leader and 58 known gangsters. Of those 58, 50 had arrest records, 35 had convictions, 18 were suspected murderers, 15 had narcotics arrests. and 30 had gambling arrests. Of the same group, 22 were involved in labor union activities, 22 in import-export ("olive oil and cheese"), 19 were involved in major grocery businesses, vending machines and construction, and 17 were involved in the ownership of bars, restaurants and hotels. Police believed another 50 or so had escaped into the woods; Sam Giancana was one of those. Two days later, back in Chicago, Sam stopped by the Thunderbird Motel (which Chuck operated) and sidled up to the bar, grinning like the canary that had swallowed the cat. He made a big show of shaking one of his silk-suited pants legs. "What the hell's wrong with your leg?" Chuck asked. "I'm shakin' those goddam New York backwoods burrs off my pants," he roared with laughter. He and his brother went into the office to share the story over a cup of coffee. "Burrs?" Chuck said with a chuckle. "Damn it, I knew if anybody could outfox the coppers up at the conference, it was you." "Yeah, you heard about Apalachin? It's all over the news, right? Well, I wasn't even gonna go originally ... but I did it as a favor to Lansky and Costello. They didn't go because they had a good idea what pitch [Vito] Genovese was going to make. But somebody had to be there. Shit, I had to run like a fuckin' rabbit through the goddam woods. The place was full of briars. ... I tore up a $1200 suit on some barbed wire, ruined a new pair of shoes." "Jesus, it sounds crazy ..." "It was crazy. And man oh man was it ever cold! Did you know leaves get real slippery when they're wet? Well, they do ... out in the backwoods this time of year. You should've seen some of the guys slippin' and slidin' down on their asses, splittin' out their pants. Some of them went right down through the trees, right down the hill." "It sounds like it must have been a zoo. The news said the coppers were everywhere." "Like ants," Sam said. "Well, I guess a lot of guys didn't get away, huh?" "Yeah, and they're ready to kill Genovese. ... They blame him for gettin' pinched. Shit, Chuck, that Genovese, the cocksucker, thought he was gonna make himself 'boss of bosses' ... and after he tried to kill Costello and had Anastasia hit, if you can believe that." Giancana told his younger brother that he, Lansky, Luciano, Costello and Gambino talked before the meeting, anticipating Genovese' move. "Gambino and I would go and we'd lay back. We'd play both sides ... find out what the sneaky bastard was up to ... that's all. No way was the sonofabitch gonna be my boss. The man's fuckin' crazy if he thinks I'd let him get away with that. Look what he's done to Frank Costello! "Genovese is a total fuckin' ass ... but he's ruined now. Nobody will ever listen to him again. Any boss worth his salt would have had the place protected. And I'm gonna make damned sure every guy in the country knows that." (1 :353-54) Yet, according to Bruce Roberts, it was not Vito Genovese intending to announce that from now on he would be "the boss of bosses" - but Aristotle Onassis. That simply doesn't match any known facts about Apalachin from anyone who was there. It is true that J. Edgar Hoover had deliberately ignored the "Mafia." (Actually the word is one coined by the government, not by "the Outfit" as they called themselves. Likewise, "la Cosa Nostra" was a government phrase few of the mobsters themselves had ever heard before. The "mafia" was a generic word, with an entirely different meaning for centuries.) Hoover had been on the take - in two ways - and so he was glad to look the other way. In addition, Hoover got good press by going after kids who stole cars. To him, that was crime-fighting. First, Hoover had his J. Edgar Hoover Foundation - and many of the top donors were mobsters and ex-bootleggers such as the Bronfman Brothers (Seagram's Distilleries). It provided Hoover with a good public image and it provided a money-laundering pipeline from the foundation back to Hoover in the form of money for speeches, consulting, etc. Second, Hoover got his horse racing tips from the mob - and they never let him down. "Costello worked the whole thing out," Giancana said. "He knew Hoover was just like every other politician and copper, only meaner and smarter than most. Hoover didn't want an envelope every month - that offended his sensibilities ... so we never gave him cash outright; we gave him something better. Tips on fixed horce races. It was up to him how much money he wanted to make on the information. He could bet ten thousand dollars on a horse that showed 20-to-1 odds, if he wanted ... and he has." It was easy getting the tips to Hoover. Costello would get a phone call from Frankie Erikson, the country's biggest and most powerful bookie, about an upcoming fixed race. Costello would then tell columnist Walter Winchell and Winchell would call Hoover. Hoover would jump in his car and head to the track claiming he was "working on a case." "He'd place a $2 bet at the window while one of his flunkies put the real money on the sure thing at the $100 window," Giancana told his brother. Hoover won every time. "Nice and neat, for sure, and you can call it anything you want ... but a payoff is a payoff is a payoff." (1 :356) Even after Apalachin, Hoover continued to insist there was no such thing as "a Mafia" (when mobster Joe Valachi testified before Congress, he confirmed what Hoover had been saying: the Mob never referred to themselves as "the Mafia." Instead, Valachi came up with a new term - la Cosa Nostra.) The FBI picked up word of a meeting that was held four days before the Apalachin convention. This get-together, "reportedly larger than that held later in Apalachin," took place at the estate of Genovese lieutenant in New Jersey. It covered the topics usually attributed to Apalachin, which may have been a continuation of this earlier gathering. ... Hoover had been upstaged and embarrassed with the Apalachin bust. However, no one in the press dared suggest - or even look into - possible "Mafia"-Hoover ties. Instead, even to this day, writers have gone easy on Hoover, suggesting other possibilities for why he "looked the other way." Some say he did it because he knew how corruptive the mob was and didn't want his own agents compromised. J. Edgar Hoover understood that Apalachin made a mockery of his long-held position that no Mafia existed in America. His claim that the Bureau lacked jurisdiction proved a skimpy fig leaf for his agency's utter dearth of intelligence about mob activities, now so clearly seen to have an interstate dimension. A few days in the wake of Apalachin, Hoover set up a "Top Hoodlums Program," using the bureau to consolidate information on leading gangsters. How did it happen? Did it happen as Bruce Roberts claims "on the basis of a tip-off from some Army Intelligence guys who weren't in on the plan"? Here's how author Jack Kelly told the story in an article for American Heritage in 2000: "The day was mild for November; the blanket of sodden clouds promised rain. By noon the hilltop estate was fragrant with the prehistoric aroma of roasting meat. The visitors, dressed in silk suits, white-on-white shirts, fancy pointed shoes, and lush camel hair coats, looked distinctly out of place in the tiny upstate-New York hamlet known as Apalachin. "A meeting of George Rafts," an observer would note.Robert Kennedy lambasted the Eisenhower administration that same year for its failure to prosecute gang bosses. "The proof is the Apalachin convention," he said. "Sixty top gangsters were there, but no local, state or Federal officer knew about it. It was discovered only by chance." So, in some respects, Roberts was right - it was "discovered by chance" and not through any efforts by J. Edgar Hoover. Somewhere, in my vast archives, I recall seeing one brief published item years ago that would confirm Roberts' claim that the first word indeed came from Army intelligence. But since I can't find it, I'm afraid I can't legitimately use it to either credit or discredit Roberts' specific allegation. If I can locate it, I will include it in a future revision. |
May 2, 1957:
Frank Costello (right) was returning from an elegant
restaurant on New York's east side. His wife and some friends went
on for a nightcap at another watering hole, but Frank, as usual, had
phone calls to make. He climbed out of a taxi at his Central Park
West apartment building. As he said goodbye to a friend, he failed
to notice a hulking figure exit a Cadillac and precede him into the
lobby. When Costello entered, the man leaped from ambush and
shouted, "This is for you, Frank." He fired at Costello's
head. Costello dropped, his assassin ran.
Croswell recognized the young man as the son of
Joseph Barbara,
who was president of the local Canada Dry Bottling Co. Barbara had a
reputation as a bootlegger and a man of shady associations. On a
hunch, Croswell and Vasisko, patrolling in an unmarked car, drove
past Barbara's lavish home a few miles away in the Apalachin
(pronounced Ap-a-LAY-kin by the locals). They noted two strange cars
-- a coral and pink Lincoln and a blue Cadillac with Ohio plates.
Croswell, his instincts honed by 12 years in the Criminal
Investigation Division, thought the matter merited further probing.
He checked the Barbara place again after dark. He talked the matter
over with two investigators from the Alcohol and Tobacco Tax Unit in
nearby Binghamton. He resolved to inquire further in the morning.
...