Rothstein_ The Life, Times, And Murder Of The Criminal Genius Part 30

Chapter 20: Coverup: "A Decenter, Kinder Man I Never Knew".

294 Murder weapon: Police were able to trace the weapon's early history. On June 1, 1928 a Joseph Novotny of St. Paul, Minnesota purchased the gun at auction. On June 15 he sold it to an unknown man. At some point it found its way into-and out of-NYPD detective bureau hands. For the record, its barrel number was #359,946.

294-95 "Rothstein ... smuggling ring.": NY World, 17 November 1928, p. 2; NY Times, 18 November 1928, p. 24; NY Sun, 19 November 1928, p. 14; NY Sun, 24 November 1928, p. 6; Katcher, p. 335. One arresting officer was Gene Tunney's brother, Detective Tom Tunney. Isaiah Leebove represented Luciano and Uffner, State Senator Elmer F. Quinn represented Walsh.

Decades later, Luciano denied any knowledge of what really happened. "All I knew about it," he told an interviewer in the early 1960s, "was that he welshed on a bet. That was the rumor. Of course, the cops called me in and they grilled me, but I never knew who done it."

Luciano added, "I did lots of favors for Rothstein, too. I used to back him in poker games. We both made money. But he could spend it so fast just livin' that it even made my head spin, and I was a pretty good spender myself. All he hadda do was ask me for the dough he owed; I'd've sent it right over." (Gosch and Hammer, p. 41) 295 Charges dismissed: NY Sun, 23 November 1928, p. 22.

295 "It's Raymond's . . . to believe.": NY Times, 18 November 1928, p. 24; Albany Times-Union, 12 November 1928, pp. 1, 2; Albany Times-Union, 17 November 1928, pp. 1, 10; Albany Times-Union, 13 November 1928, pp. 1, 2; NY Daily Mirror, 29 November 1928, p. 4; Kobler (Capone), pp. 243-44. Dog racing remained illegal nationwide until 1931, when Florida became the first state to legalize the sport. Mobsters operated most of the first legal tracks. Fixing dog races was considerably more common-and easier-than fixing horse racing.

295 Detroit, Corbo, Diamond: NY Sun, 23 November 1928, p. 22; NY Sun, 26 November 1928, p. 2.

295-96Overcoat: Whelan Report, p. 7; NY World, 11 November 1928, p. 2; Albany Times-Union, 19 November 1928, p. 2; NY Sun, 1 December 1928, p. 2. The Whelan Report indicated police found "a key to Room 349 in the pocket of said coat." They also discovered several handkerchiefs initialed "G. McM" in the room and "a s.h.i.+rt size 16."

297 "The only ... been secured." Whelan Report, p. 8.

297 New friends: NY Sun, 19 November 1928, p. 14; NY Sun, 20 November 1928, p. 23; NY Sun, 21 November 1928, p. 6; NY Sun, 27 November 1928, p. 2; NY Sun, 29 November 1928, p. 29; NY Eve. Post, 20 November 1928, pp. 1, 7; NY Times, 20 November 1928, pp. 1, 24; NY Daily Mirror, 29 November 1928, pp. 3-4.

297 "Sat.u.r.day night ... quite silly.": NY Daily Mirror, 29 November 1928, pp. 3-4.

297 "Every one ... look different." : NY Times, 20 November 1928, pp. 1, 24; NY Sun, 20 November 1928, pp. 1, 23; NY Eve Post, 20 November 1928, pp. 1, 7.

298 Room 349 unguarded, McMa.n.u.s apartment: Whelan Report, p. 11. By not searching McMa.n.u.s' apartment, police not only missed valuable clues (espe- ciall badly needed photos of the fugitive), they potentially avoided finding the fugitive there.

298 Will terms: NY Daily Mirror, 14 November 1928, p. 28; NY Daily News, 11 November 1928, pp. 2, 3; NY Daily News, 17 November 1928, p. 3; NY Daily News, 18 November 1928, p. 3.

299 Search for a.s.sets: NY Daily News, 17 November 1928, pp. 3, 5; NY Daily News, 18 November 1928, p. 3.

299 21 separate proxies: NY World, 28 November 1928, p. 2.

299 Debts: ibid. p. 1; NY Sun, 10 November 1928, p. 3.

299-00 "The irony ... his heirs.": NY World, 10 November 1928, p. 2.

300 Politicians: NY Post, 23 November 1928, p. 8; NY Sun, 27 November 1928, p. 2; NY Sun, 7 December 1928, p. 1; NY Daily Mirror, 29 November 1929, p. 4; NY Red Book, 1929 edition, pp. 42, 43; Betts, p. 88.

300 McMa.n.u.s, Hines: Valentine, p. 106. McMa.n.u.s wasn't the only gambler utilizing Tammany clubhouses. Johnny Baker operated out of Chief Clerk of the City Court Harry C. Perry's club at Fourth and Bowery; Baldy Froelich and Gus Mayo held forth at Sheriff Thomas M. Farley's 369 East 62nd Street clubhouse.

300 "A man ... he wanted.": Connable and Silberfarb, p. 289.

301 "Of the ... clubhouse.": NY Amsterdam News, 4 June 1938, p. 14.

301 "Vote every star": Thomson and Raymond, p. 127.

301 Hines' mobster ties: ibid2-33.

302 Marinelli: ibid. pp. 59, 127-58; NY Times, 26 March 1957, pp. 1, 38; Katcher, pp. 257-59, 264; Weiss, pp. 62-33; Werner, pp. 558-63. Rothstein had significant business dealings with both Hines and Marinelli, issuing numerous liability and property damage policies for Marinelli's trucking business, plus a $40,000 life insurance policy on Marinelli.

303 "Get in.": Katcher, p. 329. From Gang Rule in New York: "Years later Jimmy Hines confided to J. Richard ["Dixie"] Davis, [Dutch] Schultz's mouthpiece, that he had done everything in his power to save McMa.n.u.s. He undoubtedly had." (Thomson and Raymond, p. 72) 303 "He said ... Arnold Rothstein.": NY Sun, 6 December 1928, p. 2; Thomson and Raymond, p. 71. Shalleck possessed an interesting legal lineage. His career began in Bill Fallon's office. Maurice Cantor's began in Shalleck's. (NY Eve. Post, 28 November 1928, p. 6; Thomson and Raymond, p. 138) 304 "arrest a man.": Whelan Report, pp. 14-5; NY Times, 4 December 1929, p. 24; NY Sun, 29 December 1928, p. 1; Lardner and Reppetto, p. 213. Cordes also went to school with Essenheim.

304 "h.e.l.lo, George." . . . ... hair cut and shave.": NY Sun, 3 December 1928, p. 1.

304-05 "With his . . for him.": ibid. 4 December 1928, p. 20.

305 "A decenter, kinder ..." ... "... him anywhere.": Katcher, pp. 4-5.

305 "I'm afraid ... to a 'squealer.' ": NY Daily Mirror, 29 November 1928, p. 3.

305-06 "Circ.u.mstantial evidence ... sound one.": NY Sun, 1 December 1928, p. 1.

306 "And McMa.n.u.s, ... nothing happened.": NY Daily Mirror, 1 December 1928, p. 3.

306 Indictments, Farry: Taking the almost unprecedented step of releasing a firstdegree murder suspect on bail was Supreme Court Justice Aaron J. Levy, a key player in the Rosenthal murder case. William McLaughlin, a former police inspector who had once supervised McMa.n.u.s' father, supplied McMa.n.u.s' bail. (Thomson and Raymond, p. 71; NY Eve. Post, 5 December 1929, p. 21) All other material witnesses had been released months before Farry-Red Martin Bowe, Sidney Stajer, and Nate Raymond, for example, on $10,000 bail.

307 Keating- Macrery: Thomson and Raymond, pp. 197-98.

307 "Mr. Unger ..." ... "... is important.": NY Graphic, 22 November 1928, p. 4.

307 Burkan: NY Times, 7 June 1936, Sect. II, p. 9. In 1920 Burkan represented John Slavin against John McGraw in the Lambs Club a.s.sault case.

308 Trial schedule: NY Herald-Tribune, 6 December 1929, pp. 1, 6.

308 Election returns: Walsh, p. 204; Fowler (Beau James), pp. 256-57.

308 Murray: NY Times, 15 October 1967, p. 85. Thomson and Raymond, p. 233. Murray briefly represented Little Augie Orgen in the July 1926 murder of garment worker Samuel Landman.

308 Failure to connect the dots: NY Sun, 25 November 1929, p. 24.

308 Murder weapon: NY Sun, 20 November 1929, p. 1.; NY Sun, 21 November 1929, p. 2.

309 "show that ... Arnold Rothstein." NY Eve. Post, 21 November 1929, p. 2.

309 "Murray: "Was the ..." ... "... a smile.": ibid. pp. 1, 2; NY Sun, 22 November 1929, p. 2; Stowers, pp. 24-25, 31-32. While in police custody, Thompson hinted that he'd been in Room 349, but sensed trouble and left just minutes before Rothstein arrived. He never testified to this effect.

309 Marguerite Hubbell: NY Sun, 22 November 1929, pp. 1-2; NY Times, 29 November 1929, p. 1.

310 Marian Putnam: NY Sun, 22 November 1929, pp. 1, 2; NY Sun, 30 November 1929, p. 3; NY Eve. Post, 30 November 1929, p. 2; NY Eve. Post, 1 December 1929, p. 2; NY Times, 30 November 1929, pp. 1, 14. George McMa.n.u.s's brother Charles was among those investigating Mrs. Putnam. As the trial began, he was in Asheville on the case.

310 Orringer: NY Eve. Post, 4 December 1929, p. 8; NY Sun, 3 December 1929, p. 2; Stowers, pp. 28-31.

310 Walters: NY Eve. Post, 4 December 1929, p. 8.

311 Jackson, Bender: NY Sun, 3 December 1929, p. 2; Whalen Report, p. 13.

311 Scher: Crouse, p. 147.

311 Meehan, Farry: NY Times, 5 December 1929, pp. 1, 22.

312 $10 bribe, tripping: NY Times, 5 December 1929, pp. 1, 22; NY Journal, 5 December 1929; NY Journal, undated clipping; Albany (NY) Times-Union, 4 December 1929, pp. 1, 4 NY Sun, 4 December 1929, pp. 1, 2 NY Eve. Post, 4 December 1929, pp. 1, 8. About the only unpleasantness for McMa.n.u.s during the trial transpired as he attended the NYU-Carnegie Tech game on Thanksgiving Day at Yankee Stadium: robbers entered his apartment, stealing $20,000 worth of jewels and clothing. Big George called the police. (NY Eve. Post, 30 November 1929, p. 2; Stowers, p. 32) 312 "But take ... Rothstein.": NY Eve. Post, 4 December 1929, p. 8; NY Sun, 23 November 1929, p. 2.

312 Police witnesses: NY Times, 5 December 1929, pp. 1, 22.

313 If the ... People rest.": NY Times, 6 December 1929, p. 14.

313-14 "In a case ... overcome.": NY Times, ibid.

314 "Not guilty." ... "... tell mama." NY Herald-Tribune, 6 December 1929, pp. 1, 6.

314-15 "I was ... merry Christmas.": NY Times, 6 December 1929, pp. 1, 14; NY Herald-Tribune, 6 December 1929, pp. 1, 6; NY Sun, 6 December 1929, pp. 1, 29: NY Eve. Post, 5 December 1929, pp. 1, 21.

315 Kolsky: NY Eve. Post, 22 November 1929, p. 1.

Chapter 21: "Tell Me Who Is Using My Money For Dope".

316-17"I know ... to move." Rothstein, pp. 20, 172.

317 Drug users: Albany Times-Union, 10 November 1928, p. 2; Jonnes, p. 29; Katcher, p. 220; Chafetz, p. 404; Johnston, pp. 70, 169, 205-206, Klein, pp. 81, 135. Not until 1909 would there be a concerted effort to close the city's opium joints.

317 Narcotics prohibition: In 1918 a congressional committee estimated the number of narcotics users in the nation at one million. America's most famous drug addict of the 1920s was silent-film star Wallace Reid who, like many World War veterans, developed his morphine addiction after being treated with it as a painkiller. Actress Louise Brooks alleged that Lionel Barrymore was also addicted to the drug. Comedienne Mabel Normand was heavily into cocaine.

318 Vantine's: Katcher, pp. 294, 309; Goldman, p. 111. The scale of Diamond's drug dealings with A. R. may be discerned from a comment made after Rothstein's death by narcotics peddler Ike Berman. Frustrated by the indecision of an undercover agent, Berman blurted out: "Do you know who I used to do business with? Arnold Rothstein, Jack [Legs] Diamond and Oscar and Sam Weiner ... we used to bring back a million dollars' worth of junk from Merck's factory in Berlin."

319-2OKing, Schoellkopf: NY Times, 16 March 1923, p. 3; NY Times, March 26, 1923, pp. 1,2; NY Times, March 28, 1923, pp. 1, 3; NY Times, March 29, 1923, pp. 1, 3; NY Times, 27 April 1923, p. 36; NY Times, 20 July 1923, p. 18; NY Times, 10 January 1924, p. 5; NY Times, 27 January 1924, pp. 1, 15; NY Times, 15 March 1924, p. 17; NY Times, 9 December 1928, p. 1; NY Times, 22 March 1930, pp. 1, 10; NY Journal, 3 December 1928, page unknown; Sann, p. 95; Thomson and Raymond, pp. 44, 56; Levine, pp. 64-65; Rothstein, p. 158; Katcher, p. 306; Carey, pp. 209-22; Ferrell, p. 128; Russell, p. 572. Less than a year later, in February 1924, twenty-five-year-old Louise Lawson, another Rothstein-connected showgirl, was suffocated in her West 77th Street apartment. A. R. had insured the diamond and platinum jewelry stolen during her murder. The policy lapsed just before her death.

320 Webber, Vachuda: NY Times, 13 July 1926, p. 18; NY Times, 28 January 1927, p. 21; NY Times, 24 February 1927, p. 14; NY Times, 16 December 1928, Sect. I, p. 6; Jonnes, pp. 78-80, 102. Defending Webber and Vachuda was George Z. Medalie, A.R's attorney in the Edward M. Fuller bankruptcy. Medalie also defended Legs Diamond on drug charges after A. R. set Legs up in 1927.

321 Diamond, Mellin: NY Times, 16 October 1927, p. 1; NY Times, 4 December 1929, p. 31; Levine, p. 64; Lavine, p. 98.

321 "the mystery ... Europe": Levine, pp. 87-88; Ferber, pp. 206-13; Morris (The Man Who Fell from the Sky), pp. 114-20.

321-22 "probably the. . ." ... "You'll get yours.": NY Times, May, 19, 1928, p. 13; NY Times, 5 July 1928, p. 1; Ferber, pp. 205-208; Pasley, pp. 129-130. While in Philadelphia, Loewenstein narrowly missed death when an airplane propeller came so near his head, that it struck his derby hat.

322 Disappearance: NY Times, 5 July 1928, p. 1; NY Times, 7 July 1928, p. 1; NY Times, 13 July 1928, p. 5; Morris (The Man Who Fell from the Sky), pp. 7-9. Six other persons were aboard Loewenstein's plane: the pilot and copilot, his valet, his financial secretary, and two female stenographers.

322-23 "Two mechanics ... cruising speed.": NY Times, 7 July 1928, p. 1 323 "More and ... that source.": Katcher, p. 296.

323 Kerrigan, Kelly, Connolly: NY Sun, 11 December 1928, page unknown.

324 Prisament raid: NY Times, 16 November 1928, p. 9; NY World, 16 November 1928, p. 1; Katcher, p. 295. A. R. had a long history of funding drug dealers. Besides providing bail for Webber, Vachuda, Legs Diamond, and Stajer, he provided loans to such drug dealers as Albert Spitzer, Oscar Kirshon, Abe Stein, Louis Jaffe, and Irving "Little Itch" Halper. (Thomson and Raymond, pp. 64-65) 324 "Mr. Kerrigan ..." ... "... New York.": NY Sun, 11 December 1928, page unknown.

325 "It appears ... his own.": Arnold Rothstein FBI File, C. D. McKean to J. Edgar Hoover, 26 November 1928.

325-26 "The question ... his death.": ibid.

326 "The information ..." ... "... smuggling syndicate.": NY American, 2 December 1928.

326 Twentieth Century Limited: Said investigators of what they seized from Unger: "They were cute, those fellows. Take the trunks we seized at Grand Central . . . They were filled with what appeared to be perfectly innocent looking little Christmas parcels. Some were done up in red tissue paper. Some were done up in green. They were wrapped in pretty, decorative, ribbons and cords."

326-27 Unger, Lowe, Meyers: NY Times, 9 December 1928, p. 2. Reputedly a close Rothstein a.s.sociate, Lowe had previously served a year-and-a-day on federal drug charges. While awaiting trial, Unger obtained $10,000 bail from Rothstein.

327 "This.... the country.": ibid. In March 1929 Tuttle would reveal: "a casual study of some of the [Rothstein] account books indicated that receipts of from six to seven thousand dollars were received daily by the syndicate leaders in their headquarters in this city." Of course, he also had this to say: "An examination of these papers plus developments of Rothstein's connections with the drug conspiracy will tend to show a motive for [his] murder."

327 "Wait a ... folks about.": NY Sun, 8 December 1928, pp. 1, 2; NY Sun, 10 December 1928, pp. 1, 3; NYSun, 12 December 1928, p. 3; NYSun,14 December 1928, p. 1; NY Sun, 15 December 1928, pp. 1, 2; NY Sun, 18 December 1928, p. 1; NY Sun, 19 December 1928, pp. 1, 2; NY Sun, 20 December p. 1,2; NY Sun, 21 December pp. 1,3; NY Times, 9 December 1928, p. 1.

328 "as if ... abdomen.": NY Times, 28 December 1928, p. 11.

328 Nutt, Mattingly, Cunningham: Musto, p. 207-208; Levine, p. 87; tonnes, p. 84. In 1921 A. R. reported gross income of $31,544.48 and a net of $7,257.29 and paid $35.25 in federal income taxes. The Treasury Department indicted him, charging that his gross income amounted to at least $70,227.88, with a net income of $45,490.29, resulting in a tax payment of $4,795.32. Nothing came of the indictment.

Eventually the IRS made slightly more reasonable calculations regarding the taxes A. R. owed: $166,076 in 1919, $44,532 in 1920, and $15,478 in 1921. In July 1936 the IRS finally abandoned any idea of collecting from A. R.'s estate, saying it could not identify sufficient a.s.sets to satisfy their claims.

329 "may have ... affected thereby.": NY Times, 17 April 1938, Sect. II, p. 6; tonnes, p. 29.

Chapter 22: Aftermath: "A Wonderful Box".

330 "The recovery ... light . . .": NY Times, 29 September 1929, Sect. 10, p. 1.

331 "If there is ..." ... "... high standing.": NY Times, 29 September 1929, p. 2; NY Times, 30 September 1929, pp. 1-2, 24.

331 "Not even ... are missing.": NY Times, 28 September 1929, pp. 1-2. One item left in Rothstein's papers was a September 1922 letter from judge of the Court of General Sessions candidate Edward Shannon Brogan who solicited a substantial loan from A. R. and promised "be a.s.sured that I will never forget favors, and this is a real one." Brogan lost to Republican Morris Koenig, brother of Manhattan County GOP Chairman Samuel Koenig. That may explain why that correspondence survived Tammany's vetting.

332 Vitale guests: We have crossed Delagi's path twice before. Starting as an errand boy to Tammany boss Tom Foley, Delagi failed the bar exam five times before finally succeeding. In 1912 Delagi served as one of two courtappointed attorneys in the murder trial of Lieutenant Charles Becker's publicist Charles Plitt. In May 1920 he arranged for the return of f.a.n.n.y Brice's stolen blue Cadillac Laundelet, after Nicky Arnstein surrendered to authorities.

333 Pasley, pp. 144-45; Walsh, pp. 205-07; Allen (The Tiger), pp. 232-33; Smith (Thomas E. Dewey and His Times), p. 109; Kohler (Capone), pp. 229-31; Thomson and Raymond, pp. 101-04, 116, 118, 200-15, 319; Kohler (Ardent Spirits), pp. 263-64. Capone also played a large part in Yale's murder. Many accused him-and not Terranova-of ordering it. Capone's black Nash had its own history. It had been purchased for him by Parker Henderson, Jr., son of the former mayor of Miami. The machine gun found with it was traced to Fred Burke, a suspect in the 1929 St. Valentine's Day ma.s.sacre.

334-35 a.s.sistant D.A.: "What . . . dismissed.": Thomson and Raymond, pp. 209-10.

335 "We do ... his banks.": NY Times, 14 March 1930, pp. 1-2.

335-36"guilty of . . . incompetency.": Fowler (Beau James), p. 270; Allen (The Tiger), p. 233; Katcher, p. 347; Thomson and Raymond, pp. 208-10; Cohen (The New York Graphic), p. 144; Katcher, p. 307.