Evening star., 1932-09-20
Gordon L. HoStetter Reveals
Evils to National Confer
enCe on Government.
S165, 900, 900 DECLARED
EXPORTED IN CHICAGO
Extension of Lawlessness to Cor
rupt Politics and Business
Is Shown as Menace.

The racketeering Of four classes in
this country-business men, leaders of
organized labor, criminals and politi-
clans-is costing the American public
a stupendous sum every year, Gordon
L. Hostetter, executive director Of the
Employers Association of Chicago told
the National Conference on Govern
ment, meeting today at the Willard
Hotel
Speaking under the auspices of the
National Municipal League. Hostetter
arraigned the business mans group and
union heads along with criminals a.
responsible for the racketeering that
has gained vice-like grip on many
American cities.
"Racketeering, he declared, lis an
inside job and native American prod
uct. fer which business itself is too
greatly responsible. The power and
spread of the evil is traceable in a great
part. therefore, to the subtlety OF its
operations and the respectable appear
ance OF its abiding places. The cost of
the racket IS incalculable
Experience has demonstrated, he de-
clared. that racketeering. once thought
temporary form of graft or extortion.
has developed permanent roots in cor
rupt politics and business.
Four Elements Cited.
The true racket" he said, "is COM
prised of four elements, as follows:
Il. The business man, business group
or association of business men.
2: The leader or leaders Of organ
lied labor.
g. The criminal underworld
"A. The politician
Hostetter estimated that racketeering
costs citizens of Chicago as much every
year as the entire expenditure of the
city government. or about s165. 900, 900.
The racketeering has undergone q
change for the worse in the past two
years, he added.
whereas several years ago Organi-
cations OF business men and organized
labor were principally responsible, with
the criminal acting merely as a tool, or
an agent, the criminal Is now gaining
the aScenGency.
What is more alarming, organized
criminality Is directing its efforts to-
ward control Of business and labor as
a means of perpetuating itself-when.
as. and If. and possibly regardless of
whether, its peculiar field Of activity
is destroyed by the repeal or modiflca-
tion OF the eighteenth amendment.
open declarations of this intention
have been made by some of the coun-
try's most notorious criminals and suf-
hcent evidence is present to indicate
the success of their programs.
The collective purpose and sole in
tent of this conspiracy, obviously, is
exploitation CT the public.
1T Is not my intention to indict the
whole field of either business or labor
unions. There are high ethical stand
ards in both, but there is also a be-
trayal uf the public by both. Each
needs to recognize the imperative need
OF thorough cleaning of its own house,
just as the public needs to recognize
the need for a revival Of genuine Amer
ican citizenship"
Hostetter's description of a racket is:
"A mental condition, a philosophy of
economies. translated into a course of
action and seized upon by business men
and labor leaders as a quick solution
of their problems of competitive condi-
tions and labor organization control"
Billboards Discussed.
A large portion CT this mornings ses-
sion OF the Bicentennial Conference en-
Planning. Parks and Government, of
which the Municipal League sessions
are a Fart, was devoted to discussion
OF the advances made in the campaign
against billboards throughout the coun-
try and the steps taken by the States
Continued on Page 2, Column A.