The Bismarck tribune., 1928-09-15
BY JAMES p. KIRBY

story Of Phi!adelphia. |
BY JAMES p. KIRBY
Philadelphia, Sept. l6.-The "City
Of Brotherly Love" is such no
longer. The city Of the traditional
mild-mannered Quaker, like others
in the front rank in America, today is
engaged in 4 desperate struggle to
rid itself Of the fostering sore Of
racketeering.
Twenty gang murders, some Of
them exceptionally brutal. were com.
mitted during the past year.
Money talked-or guns barked, as
racketeers collected their fortunes in
tribute, mostly from Philadelphia 5
speakeasies, estimated to number
$4,000.
Machine guns roared their leaden
hail into those who crossed the rack
eteers' path; other guns equipped
with silencsrs spat noiseless death
from secret places; leading gangsters
wore bullet proof vests for protec-
tion.
Ten million dollars . year is the
estimate made by loyal Philadelph-
ians as the amount the racket ex-
acted through the amazing system OF
corruption and collusion permitting
its existence.
Grand Jury Probe Under Way
Into this picture Of terrorism and
graft walked District Attorney John
Monaghan a few weeks ago-keen-
eyed, iron -jawed and resolute prose-
cutor, utterly fearless and determ-
ined to smash "the system" The
vigor Of Monaghan's grand jury in
vestigation shows that he means bus
mess and already the underworld
md also some men now in high places
are quaking in fear Of what is to
come.
As one observes the operations Of
the racketeer in Chicago, st. Louis,
Detroit, Cleveland and other typical
American cities and finds the Shiny
trail Of the Chicago operators, 80
alse in Philadelphia does one en-
counter the relationship between
those forces and the local under
world.
;"Scarface. al" Capone, the ruler
Of Chicago's racketeers, is the friend
and adviser Of Max boo Boo" Hoff,
the prize fight promoter who is the
overlord Of Philadelphia's under
world.
Capone has visited Hoff on nu-
merous occasions, it. has been de-
veloped by District Attorney Mona
CHAN. Nor were Capone's visits
merely social calls.
The astounding business methods
which have made Capone the ruler
of all he surveys in Chicago were
quickly adopted by Hoff and his as
sociates in the racket here. The de-
gree Of efficiency with which it
worked, almost excites ones admira-
tion.
AS in Chicago, the booze racket
in Philadelphia is organized down
to the last detail. +. Big business
showed the way when it established
arbitration as q means Of settling
disputes, and organized crime quickly
adopted such methods to its pur-
poses.
Underworld Has Arbitrator
In the booze racket in Philadelphia
today there exists an arbitrator land
it is believed by Monaghan that he
was appointed by Hoff) whose duty
It il to iron out disputes over terri
tory, prices, saloons, speakeasies,
and even the personnel. And the ar
bitrator's decisions are final.
The holding company, the device
Of big business used for the purpose
of more effectually handling land
frequently Of concealing) certain
transactions not deemed suitable ia
the public gaze, is another device
adopted by the racket. .
Securely locked in the vaults OF
the district attorneys office arr
the books and records, the corpora
ton documents, Of the Franklin
Mortgage and Investment Company
the holding company organized BY
Hoff and his partners, Charles
Schwartz and Samuel Lazar
Schwartz is now under indictment ii
the federal court in Cleveland, as one
Of the ITO conspirators to violate the
national prohibition act.
And these books and documents
disclose amazing things. For ex,
ample, entries made and kept with
remarkable precision. are shown
therein. Other records Of firm o1
public accountants also seized b,
the district attorney disclose pay
m&nts o high o $4,000 1t time te
high police officials and others.
internationally, through the mazl
ct stories that fill Philadelphia news.
papers, there appears the name Of
Congressman Benjamin N. Colder oi
Philadelphia, one Of the organizer.
and, until recently, secretary Of thu
Investment company"
It was Colder, who when Schwartz
was to be taken back to Cleveland
ffem Philadelphia BY federal off
GERS, represented Schwsrtz as coun
sei.
On the day Schwartz was, TO b,
called into federal court, Golde,
caused subpoen4s to be Issued fol
evtry Charles Sehwartx In the tele
phone book spd the city directory
and the perplexod federal officer
from Cleveland, never having seer
the man they sought, could not o.
tAblish to the courts satisfaction
which o. the dozen OF na0r0 Charles
6shwartxs in the courtroom was thl
msn they sought.
W6er Bullet Proof Vests
It was "Boo-B Boo" Hoff who intro
duced tho naachine gun, the silence,
TOR the automatic pistol, and til
bnllet-pEool vest - Philadelphia.
Edwaid s. GolAbet9, proprietor o.
military reeds store. now unds
bond q 4l0,O00 on charge Of per
Jury brought BY Monaghan, h4s ID