Prohibition and Organized Crime
Volstead Act
- passed on October 3, 1919
- act stating that beverages over a 0.5 alcohol volume were illegal
- After that day, more and more speakeasies started popping up all over the United States
- speakeasy- illicit store that sells alcohol during Prohibition
- bootlegger- someone who carries, makes, or sells alcohol illegally
- along with the 18th amendment, it says individual states should enforce
- some refused, like Maryland
- New York repealed it in 1923
Prohibition
The 18th Amendment
- passed by Congress on December 18, 1917
- ratified January 16, 1919
- states that it is illegal to buy, sell, import, export, or make alcohol
- does not state that it is illegal to drink or have
- loophole for those who already owned it
- some wealthy people had wine cellars
- exceptions for sacramental reasons and medicine
- the 21st amendment repealed Prohibition
- ratified on December 5, 1933
- average american 15 and older consumed an average of 7 gallons of alcohol a year
- began with the temperance movement in the early 19th century (around 1820)
- alcohol and physical abuse were frequent occurrences
- woman had few legal rights and needed husbands support
- husbands spent all their money on alcohol
- movement formed, majority were women, that protested to ban alcohol
- supported by other movements, such as the abolition and suffrage movements
- the Great Depression and the revenue that comes from alcohol was one of the reasons Prohibition was repealed
St. Valentine's Day Massacre
Organized Crime
http://www.history.com/news/10-things-you-should-know-about-prohibition
- Jack McGum, henchman of Capone, located George Moran's headquarters
- claimed to have whiskey to sell
- Capone's men dressed as plic officers and drove in a stolen police car
- Moran's men obeyed "police" orders
- four gunman killed seven Moran mob members
- Moran escaped
"There'd never been a more advantageous time to be a criminal in America than during the 13 years of Prohibition. At a stroke, the American government closed down the fifth largest industry in the United States - alcohol production - and just handed it to criminals - a pretty remarkable thing to do" - Bill Bryson
People Known for Organized Crime
William Bill McCoy
- American Sea Captain
- smuggled Whiskey into the U.S. from the Bahamas
- registered ships in British registry
- credited with inventing "burlock"
- captured and spent nine months in New Jersey Jail
"I have no tale of woe to tell you. I was outside the three-mile limit, selling whiskey, and good whiskey, to anyone and everyone who wanted to buy"
Johnny Torrio
- Italian - American
- Ran over 100 brothels in Chicago
- Leader of the Chicago Outfit
- Took Al Capone under his wing
- Hired Frankie Yale to kill Colosimo, allowing mobs to excel in bootlegging business
- Rival gang attempted assassination
- Handed control of Chicago Outfit to Capone
Dutch Schultz
Organized Crime
- worked as bouncer at speakeasy
- Became allies with ruthless Noe
- Controlled beer supply in New York areas
- clashed with rivaling gangs
- Legs Diamond War
- War with Vincent Coll
- Shot and killed in New Jersey
Johnny Torrio
Al Capone
William "Bill" McCoy
Dutch Schultz
George Remus
Al Capone
- flourished during the period of the prohibition movement
- prohibition was enforced in order to reduce crime but violence increased
- people who became unemployed because of the closures of all alcohol related industries turned to organized crime
- they began to make alcohol themselves to make easy money to support their families
Organized Gangs
- Organized gangs imported alcohol from Canada and the Caribbean and built their own distilleries
- Sold the alcohol to speakeasies
- Made deals and bribed the law enforcement
- Modified cars to have secret compartments and to hold more alcohol
- originally from New York, but moved to Chicago on Torrio's request
- bartender and bouncer who moved up in ranks
- Profited about $60 million annually
- lived a luxurious life and gained public's sympathy, his popularity waned
- believed that he personally killed dozens, and ordered deaths of hundreds
George Remus
What did the government do about organized crime?
The Racketeer Influenced and Corrupt Organizations Act (RICO) - allowed prosecutors to go after crime families and their sources of revenue both legal and illegal. They could convict leaders who ordered others to do a crime.
- criminal offense attorney turned bootlegger in Cincinnati
- found loopholes in Volstead act
- bought distilleries
- Fleischmann Distillery
- Death Valley Farm
- used hidden tunnel to push products to bootleggers
- threw elaborate parties
- died in Covington, Kentucky