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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  • New York repealed it in 1923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  • the 21st amendment repealed Prohibition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  • the Great Depression and the revenue that comes from alcohol was one of the reasons Prohibition was repealed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
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