The Washington times., 1933-10-07
FEDERAL PROBE
RAPS VERDICT
Of SUICIDE
Killing in "GoId Coast" Palace
Occurs 6 Hours Following
Indictment of Victim

Indictment of Victim
CHICAGO, Oct. 7 G.N.SO.
Bizarre underworld alliances, with
hints of sensational disclosures,
came to light today as Depart
ment of Justice agents opened an
investigation of the apparent Slay-
ing of Edgar B. Lebensberger, Chi
cago's gambling and night life
king.
Six hours before the wealthy
gambler was found shot through
the head in his swank Gold
Coast" home, Lebensberger was in
dicted by Federal grand jury for
completely in the $500.000 Loop
mail robbery of last December 6.
Reasons for Staying
Indicted with him we're John
j. Boss" Mclaughlin, former
member of the State legislature
and big-time gambler, and Joseph
Sans, so-called credit manager at
Lebensberger's fashionable gam
bling resort, the 225 Club.
The indictments will be fol
lowed by the seizure of seven
other suspects, including a widely
known Chicago gang leader, Fed
eral agents disclosed.
United States District Attorney
Dwight Green, in ordering Federal
agents to begin an investigation,
said:
81 can think of several rea-
sons why, LebenSberger may
have been murdered, according
to the underworld code.
'We have merely scratched
the surface"
What the reasons were, Green
refused to say, but it was lntl'
mated that the victim may have
been killed to prevent his testi-
n1ony as a Government witness
In the mail robbery case.
Green swept aside a coroner's
verdict that Lebensberger COM
mitted suicide while temporarily
insane" He was shot on the
left side of the head, but he was
right-handed. No powder burns
could be found on the body.
In the victims puzzling life, a
contradiction of association with
members of elite society on one
hand and gang leaders and racke-
teers on the other, Federal agents
were seeking solution to his
death.
Associate of Winkler
The dead mans alliance with
the underworld came to the fore
when police ordered the arrest OF
Gus Winkler. North Side leader
of the Capone gang, who ascended
to the throne with the Staying of
Ted Newberry. NeWberry had
been partner of the gambling
king, and Winkler, too, was said
to have a financial interest in the
225 Club.
Gangster and gambling ele-
ments were reported to be expect
ing a "blowoff" in the gambling
and vice situation in Chicago as
the Federal investigation gained
momentum.
Iebensberger was shot to death
in bed at his North Side residence,
a replica of the Venetian home of
Desdemona, tragic figure in
Shakespeare's "Othello." His
blonde widow testified at the in
quest that he had recently threat
ened to kill himself.
The bullet passed through the
head and imbedded itself in a bed
post. The victim was found by
his butler, clutching revolver.
Nearby was a table on which
stood half-emptied whisky bot
tie and numerous cigarette stubs.
Son of Millionaire
Iebensberger's life was a puzzle.
Born to wealth and affluence as
the son of Lafayette Lebensberger,
millionaire distiller, he was edu-
Gated to a life of society.
At his three night clubs and
gambling resorts, LebenSberger
associated with members of elite
society and the underworld of
gangland as well.
He was the associate and friend
Of such gangSters as Newberry.
Stage and screen stars were
patrons of his night life ventures.
He generously bought complete
wardrobe for Frances White, the
singer, when she attempted a
comeback a month ago.
Lebensberger's indictment dis
closed that Clark B. Ritchie, in
vestment broker, previously had
been indicted on a charge OF pos
session of the stolen bonds con-
tained in the looted mail sacks.
Sol Stern, a bond salesman, is out
on $4,000 bail, in connection with
Nr41oknr1y