Evening star., 1935-09-29
G-MEN OPEN WAR
ON RACKETEER|NG
Field Is Wide Open, Hoover
Declares, After In
vestigation.
BY REX COLLIER.

The G-men, having delivered
smashing blows at kidnapping and bank
robbing, are trailing gangsters into
another field of crime-industria
racketeering.
j. Edgar Hoover. head Oman, re-
turned from New York yesterday with
flrst-hand information on racketeer-
ing conditions reported to be acute
there. He said his agents are investi-
eating various types of racketeering
affecting interstate commerce in vari-
GUS parts of the country.
The field is wide open," he re-
marked, because kidnapping. extortion
and bank robbery are being brought
under control"
The Federal Bureau of Investiga-
ton will bring all available resources
to bear On racketeers who attempt to
muscle in" on legitimate interstate
businesses by exacting tribute under
threat of violence or by actual acts of
violence, such as bombing, gunflre or
halting of shipments.
Interstate Angle of Cases.
Hoover said his study of the situa-
tion in New York was in the nature of
a bird dog survey" in which he
sought to ascertain whether the field
covered by complaints there was one
in which Federal agents have juris-
dicticn. He indicated some of the
offenses appear to have an interstate
angle which would bring them within
the scope of the Federal racketeering
act.
Under this statute, the Justice De-
partment is authorized to arrest and
prosecute persons who Interfere with
interstate trade or commerce by vio-
lence, threats, coercion or ntimida-
ton" The law, passed in June, 1884,
provides for imprisonment of violators
for from l to 10 years or assessment
OF a $4,000 fine, or both.
Constitutional limitations of the
act prevent the F. B. I. investigators
from handling cases which do not in
yolve interference with delivery of
goods across State lines. They are
powerless to act where threats or
violence are aimed at stores, res
taurants or other businesses of intra-
state nature.
A grand jury in New York is in
vestigating violations of State laws
against racketeering.
Poultry Racketeering.
New York racketeers have centered
much of their activity about the
poultry business. in which tons OF
birds raised in New Jersey and other
nearby States are shipped into Man.
haitian for consumption there. This
type of violation, it is said, comes
within the purview of Hoover's agents.
The "chiseling-in" variety Of racke-
teer was in his heyday during the
reign of Al Capone and his gang, but
the breakup of that mob, due both
to income tax prosecutions and inter-
gang warfare, caused the underworld
to turn to other ways of making
"easy money"
kidnapping for ransom, extortion
conspiracies and bank robberies be-
came SO commonplace that Congress
enacted special laws giving the De-
partment of Justice jurisdiction in
such crimes. The spectacular round
up OF kidnapers, extortionists and
hank robbers that followed brought a
marked decline in these offenses.
The racketeering law was passed
long after the kidnapping act and was
designed to meet the developing crime
problem along the industrial front.
According to Joseph B. keenan,, As
sistant Attorney General in charge OF
the criminal division, however, the
law has so many limitations that the
Federal Government is greatly handi-
capped in its war on racketeers.