davidaulloa/AmericanStories huggingface dataset:
The Washington times., 1938-08-17
'HOU Dutch Made
Numbers Game
Crooked

a crooked racket. They used q
man called Abba-Dabba. He was
inside the pari-mutuel system at
certain race tracks. AS soon as
the numbers were in, the bank
would take out quarters and the
fifty-cent slips and figure out
the numbers.
"As soon as the first five races
were over the bank would tele-
phone to George Weinberg, with
the numbers of the high slips.
He would tell Abba-Dabba. Abba.
Dabba would fix the odds on the
last race, so the high bettors
couldn't possibly win"
AS an earlier-and less scien.
tific-basis for the gamble, Dewey
went on, the policy gamblers had
used the clearinghouse figures.
If the clearing house, for exam.
pie, reported a balance of $248,-
798,642.04. the secret winning
numbers" would be the last three
figures listed.
But this method Of operation
was discarded for the sure-thing
pari-mutuel system, and the oper-
ators kept more and more of the
receipts.
1t was in 1881, according to the
district attorney, that Arthur
Du c h Schultz Flegenheimer
gang leader, decided to make
the policy game a racket" In
that year, however, Schultz was
engaged in a war with another
gangster, Vincent Coll, since slain.
numbers game didn't get organ.
lied by Schultz in a big way un'
til 1882.
Dewey said that when Dutch
Schultz decided to organize the
policy games into one big racket
he formed an organization. "Bo"
Weinberg and Marty Krompie1
were his partners. Lulu" Rosen
cranz was SchultZ's bodyguard
The district attorney also named
number of "gorillas" who, he
said, we're part Of the Schultz mob
"They organized the many
small games into a big racket"
declared Dewey. George Vein
berg (brother Of BOZ became
active in the setup. Harry
SchoenhauS was the chief book
keeper.
The Washington times., 1938-08-17

DERLES remedies are as novel
~ as his analysis. He offers
three different remedies for diff
ferent industries: (A) more
monopoly in the form Of cartels
for some, CD public ownership
for others, and (C) more COM
petition for a third class.
The cartel formation he rec
ommends for industries which
are not prepared either for
monopoly or public ownership,
including: steel, power, certain
natural resources, motors, oil,
copper, possibly textiles, and
some others.
For the public ownership field
he apparently has in mind trans
portation, power in part; some
OF the natural resources includ-
ing oil. Gle says all these in
dustrieS involve the real choice
between regulated monopoly and
government ownership, there
fore, he does not draw a straight
line between them.)
The rest would presumably
enjoy free competition.
Between gasps while reading
the recommendations, the anti.
monopoly Investigators indi-
Gated there was not much
chance Of the committee accept
ing the Berle plan as a whole.
That sounds like a logical. de-
duction. While the Berle plan
may or may not be good eco
nomics, it is certainly not cur
rent politics. It admits blunders
of the past, exposes fake issues
of the present and provides a
remedy which seems to contain
Strychnine as well as balm.
The case he makes out con.
vincingly, however, is that hard
and fast remedies are impos-
sible.
The Washington times., 1938-08-17
Berle Argument

IL little business is not neces-
"A sarily good socially; nor is
all big business wicked socially,
Berle argues in the requested
analyses. He claimed the small
est independent garment manu-
facturers, for instance, must
chisel to live in highspeed COM
petition. Big business may be
better able to meet the demands
of labor and the social require
mentS Of the com m unity
(through more taxes, better
working conditions.)
What Berle wants the COM
mittee to do first is to find q
business which is satisfactory
and use that as a standard
measuring stick. The test as to
whether it is all right would be
the degree by which it meets
the needs Of the people in pro-
duction, distribution, ETC., main
tains liberty, performs its service
to society.
The Washington times., 1938-08-17


men if it is ever made public.
The Assistant State Secretary
starts out by suggesting that
publicly accepted preconceptions
Of monopolies and prices (those
which have been stressed by all
the politicians who have been
talking on the subject) are not
true.
In the first place he wants to
know If the hounds are chasing
the right rabbit, whether monop-
oily is really what they are after.
Monopoly is not necessarily big
business.
Furthermore, prices have moth
ing economically to do with
monopolieS.
And as for remedies, such sug-
geStionS as that of the commit
tee chairman, Senator OMa-
honey, for Federal licensing Of
corporations would only create
Government business dictator
ship.
The Washington times., 1938-08-17

He also asks what labor really
wants in the end; says labor
can drive any small business
to the wall; suggests the wage
and hour method Of current
procedure is wrong; what would
be better is an annual wage,
permanency Of jobs, plus pen
sionS and sick relief.
He punctures an IckesJack.
son balloon when he says Lund.
berg'S inaccurate Sixty Fami-
lies" may have private wealth
but not economic power. What
the investigators should go after
Is the concentration of power
which he claims is lodged in
unity of interest, not money.
He mentions such things as J.
P. Morgan and Guaranty Trust,
the Aluminium Company and
Niagara Hudson, control OF
rayon supply, block booking.
Incidentally, Berle also pune
lures q pretty thoroughly de-
flated Oliphant balloon, the un-
distributed profit tax. He claims
this tax gives a perpetual Gov
ernment franchise large corpora
tions by denying small competi-
tors the right to enlarge them
selves.
The erroneous basis Of this
tax (which Mr.. r. indicated in
his West Virginia speech he may
seek to revise and repropose) is
that a small company is not a
matter of mathematics. A gro
cery store with $4,000 annual
profits would be big business;
q steel or an auto plant with
the same would be pitifully
weak business,
The Washington times., 1938-08-17
Vast Subsidy System,

QERLE also suggests a way for
- the New Dealers to get after
industry by checking up on Gov
eminent subsidies. He thinks
the subsidy system is vast. There
are direct subsidies like Mer-
chant Marine, Airmail, etc.; in
direct ones like tax exemptions,
franking privileges, second class
mail: Government orders for
steel, ETC.: special privileges
granted for radio and communi-
cations; tariffs; RFC, FEC loans
ETC.; Government private protec-
tion (Sugar, farm productS.) He
even thinks the Government is
Subsidizing the automobile in
dustry by building good roads,
and offers the admittedly shock
ing suggestion that relief pay
ments are really Government
subsidies to industry because the
Government, for instance, takes
care of the auto workers in
lay-off periods.
The Washington times., 1938-08-17
Bund Resists Inquiry

Efforts of the American Legion
to obtain information concerning
the German-American bund have
been resisted by officials, he said
The legion, he added, has dis
covered the extent and nature oi
operations Of the organization.
The bund has seized upon the
opportunity to attempt to JUS
tify its existence in the United
States by claiming that its chief
aim is that of fighting Commu-
niSm within this country" Chail-
laux said.
"Their interest in fighting
Communism should be accepted
on about the same plane as the
Communist party when it tries
TO say that its chief reason for
existence here is that Of oppos-
ing EasciSn and Naziism."
The Washington times., 1938-08-17
Hope Ddre's Status

Dewey discussed ]. Richard
Dixie" Davis, a disbarred lawyer
and former "mouthpiece" for the
Schultz organization. Davis was
arrested in Philadelphia months
ago and brought back to the
Tombs in New York. Recently it
was announced he had turned
States evidence and would be a
star witness for the State. With
Davis, when he was arrested, was
Hope Dare, beautiful red-haired
show girl.
while Dixie Davis was in
prison" Dewey told the jurors,
"he had bad throat, which re.
quired expert medical attention.
He was allowed to visit his doc
tor,
The Washington times., 1938-08-17
Hines wife Stars
As C0urf attraction

NEW YORK, Aug. II Q.N.S).-Star attraction in JUS
ce Ferdinand Pecoras court where her husband is on
trial, Is James J. Hines charming wife,
She is quite literally beautiful woman, slim as
dehutant" with complexion any deb might envy, Lowell
brown eyes and hair which is barely going gray. She is
dressed Smartly in white.
with Mrs. Hines sits her daughters-inaw, Mrs. James d.
Hines lr; Mrs Philip Hines and Mrs. Eugene Hnes and
of her three are there constantly at their
father elbow pattng him the back uttering words OF
encouragement.
The Washington times., 1938-08-17
Bars Jury Taking
Hines Trial Notes

NEW YORK, Aug. II
I.N.S.). - District Attorney
Dewey turned to Judge Ferdi-
nand PecOra before starting
his address at the trial of
James ]. Hines and asked
that the jury be permitted to
make notes of the many
names which would figure in
his grafton. PecOra promptly
turned him down, saying:
"NO, 1 never permit a jury
to make notes. They must
rely on their memory"
Dewey smiled his acqui-
eScence.
The Washington times., 1938-08-17
Leader Says Jews
Will Fiqht Arabs

LONDON, August II G.N.S.).
Vladimir JabotinSki, leader
of the Zionist revisionist move
ment. was quoted today in a
Reuters dispatch as warning that
Jews in Palestine will strike back
with armed force if the Arab
Terror" is not suppressed.
The Washington times., 1938-08-17

sympathetic toward Communists,
Chaillaux included the Garland
Fund, the Workers Alliance, Ma
tional Congress for Unemployment
and Social Insurance, Interna-
tional Workers Order and the
International Labor Defense.
Communist inflences, he said,
dominate the American League
for Peace and Democracy and the
American Youth Congress.
Other organizations he listed as
"un.American" included tn e
American Friends of the Soviet
Union, North American Commit
tee to Aid Spanish QoyaliSD De
mocracy, the American Friends OF
Spanish Democracy and the
American Society for Technical
Aid to Spanish Democracy.
Would Ban Bund
Turning to the German-Amer
1can Bund. Challaux said the
American Legion condemns it in
the same vigorous way in which
1t condemns Communism.
I'VE urge your committee"
he said, Ito take whatever steps
may be necessary to make the
operations of the German-Amer-
lean Bund illegal in this coun-
try, just as we have urged you
to make the operations of the
Communist party illegal in this
country, so long as either Of
them teaches. openly or Sc
cretly, adherence to programs
of violence looking to altera-
tion of our form of govern
ment or so long as either Of
them tries to foster dictator
ships upon the American
people"
The Washington times., 1938-08-17


monopoly IN
v e s t | eating
C o m m / t.
tee from Mr..
r o o S e Velt'S
h / 6 h e s t
r a n k / n g
ra in t rust
man. Adolph
A. Berle. It
may have the
S ! m e effect
as a lighted
match among
the economic
b q ! | o o II S
being floated
The Washington times., 1938-08-17

ization, he declared that on one
of the police raids $4,000 worth
Of policy slips were found.
Dewey pointed out that count l
against Hines involves the charge
of general conspiracy to operate
a lottery-or "numberS"-game.
The subsequent counts, he ex-
planned merely pick out the
dates when the alleged violations
took place.
Dewey held a piece Of yellow
paper in his hand as he explained
how the game operated.
Hines sat quietly at defense
counsel table. listening to Dewey
with a poker face" cast to his
bronZed countenance,
The Washington times., 1938-08-17

%, of the 1900 block First st.
s. W., and George Guest, So, Of
the 1900 block Arkansas Ave. N. w,
Alfred Bowie, 80, was treated at
Emergency Hospital, and Steve
Kelly, As, of the 400 block M st.
N. W., was taken to Freedmen's
Hospital.
Collapsing from the heat while
being questioned at the Thirteenth
precinct, Leslie Hamilton, 81, of
the 900 block New York Ave.
N. W., was taken to Gallinger
Hospital.
The Washington times., 1938-08-17
ACCuser Found
In Bridqes Case

I.N.S.) Margaret Kerr, of
the Better America Fedora
ton. Of Los Angeles, said to-
day that she Is the mystery
woman" said to have evi-
dence that United States
Department Of Labor Off
cials advised Harry Bridges,
West Coast CLIO leader, how
to escape deportation on
Communist charges.
Miss Kerr, q cOmely,
freckled-faced woman, re-
fused to discuss the case.
The Washington times., 1938-08-17
Hits "Innuendoes"

He also visited a woman
named Hope Dare several times
at her apartment, where he kept
his things. He changed his
clothes there and had meals.
The mother of Hope Dare was
present. I ask you not to believe
1nnuendoes about these visits"
Dewey related that there were
few arrests after the Schultz
organization got control of the
policy racket.
"A raid on the bank was an
expensive business, said Dewey.
he said those arrested were pro
Vlded with legal protection.
Citing the extent of the organ
The Washington times., 1938-08-17
$4,000 Contract
Awarded in Dallas

I.N.S.O The Dolph Bateson
Construction Company of Dallis,
Tex, today was awarded a con-
tract totaling $416,8O0 to con-
Struct four buildings at the Fed
eral Women'S Institute at Dallas.
The Washington times., 1938-08-17
Heat Kills -Four
In Gotham Area

NEW YORK, Aug. II
U.N.S.). Another day of
scOrching heat brought Suf-
fering to millions in the
metropolitan area today.
While thousands slept In
parks and ON the beaches
the official weather fore
caster predicted no relief.
A high temperature Of 81
degrees was registered yes.
terday as against 93.4 de-
grees the day before but in
creased humidity made the
weather more uncomfortable.
Four persons died from the
heat.
The Washington times., 1938-08-17
Capital Credit Banks

RERLE wants an investigation
~ of the credit system and be-
lieves a new system Of capital
credit banks (backed by a capi-
tai reserve bank) is necessary.
The Washington times., 1938-08-17

Dewey delivered his address to
the jury in a casual matter-of-fact
manner. He talked for only about
an hour and IS minutes.
He explained in detail how the
policy game had become popular,
particularly with people of small
means who bet pennies, nickelS
and dimes in the hope of pulling
down the big prizes. He said the
chances against the player win
ming were 1000 to l.
Schultz took over the lottery
games in February, 1892" said
Dewey. "On Washington's birth
day. in that year, Hines came
back from Hot Springs and the
protection was arranged.
From that day on Hines got
$500 a week from Schultz and
anything else he wanted up to
$1,000"
The Washington times., 1938-08-17
dewey 7 ELL S
HINES JURY OF
NUMBERS LURE.
How "HunCh" Players
Dope Tickets Barred

NEW YORK, Aug. II G.N.SO
A blue ribbon jury learned from
Prosecutor Thomas E. Dewey
about the futile fascination of the
policy game as the prosecutor de-
livered a terrific indiStment of
James j. Hines as a protector
of racketeers.
More than half Of the policy
players in New York city are resi-
dents of Harlem, Negroes whose
Superstitions go back beyond the
iungles of Africa to the very dawn
of the human race. Almost any
little arresting incident in daily
lif els a "hunch" for a policy
player.
HOW THEY DO 1T
Dewey instanced that a policy
fiend would buy new CO" @""
then consult his dream book and
tind out if new car L
tain numbers. If 1t did - A
number, that was the number he
would play.
Juror Hugh C. Harle inter-
rupted:
only one thing I don't under
stand, where do the receipts
come from? Who gives the re-
ceipt, even for two cents?"
There are no receipts in this
game" said Dewey. 1T is a
game that is played on faith
and luck, and if the banker
doesn't pay off he loses the Gus
toner.
DUTCH" WAS SMART
"You raise an interesting
point. During the course Of the
conspiracy one of the ideas
which Dutch Schultz had was
the development of photo
stating machine, because false
claims are often made. People
do not remember what they bet
on or keep a copy for them
selves, so they can try and cheat
the banker and say to the col
lector, I bet on this number.
Back in the year 1881, policy in
New York was largely controlled
by Alexander PompeS, who came,
Dewey thought, from Cuba. Then
there were the two brothers Ison,
who conducted one of the largest
policy banks. Henry Myro was a
big banker, and a character named
Maloneywas another. They were
doing at that time a business OF
approximately $10,000,00O a year.
1t was a field so lucrative it at
tracted the Shrewd gaze of Arthur
Flegenheimer, better known as
Dutch Schultz" He was smart
enough in 1881 to see that proiibi-
tion was on its last legs. So the
astute Mr.. Flegenheimer moved in
on the policy bankers of Harlem
and took the good thing away
from them.
NAMES SCHULTZ AIDES
"Bo weinberg and Marty Krom-
pier were his partners" DaWey
said, "the men who were Dutch
Schultz mobsters, plain and sim
pie, were Abe Landau, who is dead,
II believe; Lulu RosenkranZ, who
was Schultz bodyguard; Dannie
Dale, also a bodyguard; Larrie
Carney, a gorilla; Solly GirSn,
who is missing, and John Coney.
Schultz then sent for George
Weinberg, a gambler, and as
Dewey related to the jury, through
Weinberg brought into the ring
a shrewd lawyer named ]. Rich
ard Dixie" Davis. Various others
were brought into the mob. Early
in 1882, after Vincent Coll had
been killed, Schultz called meet
ing. The gang was ready to go in
a big way, the organization was
complete and functioning
smoothly.
TOUGH PROBLEM
Dewey said that policy is only
about 20 years old in the city of
New York. It is one of the hard
est problems the law authorities
have ever had to deal with be-
cause, played in very small sums
of money, it is SO popular with
large masses of people.
-----------
The Washington times., 1938-08-17
Directed From Russia

Al du ellO \ w SlLOW CLlnt 61AASA
lean Communist activities are di-
fected from Russia, Chaillaux
quoted from the Communist man
tfesto which he said is "the only
bible known to Communist party
members"
The manifesto, he said, declares
that Communists everywhere
support every revolutionary move
ment against the existing social
and political order of things"
The Communist Internationale.
Of Moscow, Chaillaux said, is the
directing force of world commun-
ism. He quoted from its consu-
tuition as saying that it is "a union
Of communist parties in various
countries" whose membership lis
open to all those who accept the
program and rules of the given
Communist party and Of the Com
munist Internationale, who join
one of the basic units Of a party,
actively work in it, abide by all
the decisions of the party and Of
the Communist Internationale,
and regularly pay party dues.
Reds Financial Aid
Listing organizations which, he
eaid, have given financial support
TO the Communist party, have &C
cepted leadership from known
Communists or indicated from
their activities that they are
The Washington times., 1938-08-17
CroOkedness Enters

Dewey explained that the mum
bers based on the racetrack parl
mutuels ran from 1000 to 999."
The winner was to get 600
to l but there were deductions
which brought the odds down to
$40 to l." he said. There were
no receipts. This game was
played on faith and luck.
After this racket got Or
ganized they decided they could
make more money by making 1t
The Washington times., 1938-08-17
Colossal Aggregate"

Explaining the policy racket
Dewey said people who play it bet
as low as a penny or two, or
nickel or a dime. Sometimes the
player wagers a dollar-Very in.
frequently as much as IS.
In the aggregate the game
runs into colossal sum OF
money" Dewey declared.
He said the game has been In
operation for "20-odd years" In
the city of New York.
He added that it appeals to a
large number of superstitiouS
people who play a combination
of numbers"-some who stick tc
the same numbers combination In
the belief that it will win the big
money prize some day.
The Washington times., 1938-08-17
BREAK IN HEAT
is DUE TONIGHT
s5 LIKELY today
Showers Are Expected
To Bring Relief 4
CONTINUED from Page ~

Continued from Page ~
lie Health Service, Communicate
ions Commission and Securities
and Exchange Commission.
Brief showers during the night
did little to help, and the low
temperature Of the night was only
76, recorded at 1 o'clock this
morning.
Thousands Of persons rushed
from the offices to the parks and
beaches in search Of relief. Every
available bit of parking space
around Hams Point was occupied
by persons hoping for a breeze off
the river.
Park Police reported that many
persons passed the night in Rock
Creek and other parks through.
out the city. Even the brief show.
ers did not drive them out Of
the parks.
The fords in Rock Creek Park
were crowded with children who
went wading in an effort to keep
cool, while every swimming pool
was packed to capacity.
The humidity yesterday
mounted to 81 per cent, eight
degrees more than on Monday,
and even the Weather Bureau
dismissed as many employees as
could be spared.
The Washington times., 1938-08-17

A SHOCKING memo on busi-
"A ness and economics has been
received privately by the anti.
The Washington times., 1938-08-17
Protected Schultz,
Jury Is Told by
Prosecutor

Continued from Page II
ruary, 1892. In the organization,
according to Dewey, were a lot
of "gorillas."
"Hines Got $500 a Week"
The Washington times., 1938-08-17
SeUen in Hospital

Seven of those overcome were
taken to hospitals. Those treated
at Casualty were Eddie Alphant,
%, Of the 1900 block Fourth st.
N. W.; Isaac Sarvis, SO, of the 600
block I st. S. E.; Jodie Crowder,
The Washington times., 1938-08-17
8 U. S. OFFICIALS
CITED BY LEGION
At RED" PROBE.
Six Men, Two Women
Included in Group
Continued from Page /

Continued from Page II
those things in their files. but
have been told by past com.
mander that he has information
that Government employees have
been active in allied Communist
organizations"
Chaillaux suggested to Represen-
tative Thomas that it would be
proper" for the committee to
seek legion files from George NAL
10y or Tom Roberts. officials sta
toned in Washington.
Laying before the committee
scores of documents. Chaillsux
charged that American Commun-
ism still takes orders from Mos
COW.
Attacking the German-American
bund. headed by Fritz Kuhn he
denounced Nazi propaganda and
asked Congress to enact leglsla-
tion to outlaw organizations such
GS the bund.
The Daily Alaska empire., 1938-09-28
GOLDEN HORN
 OPERATOR ON WAY INSIDE
(. C. Mespelt Taking Re. cent Bride to Medfra
 Home Near McGrath

Bound for Medfra with his recent bride, c. c. Mespelt, one of the op- orators of the Golden Horn mine, took passage to Fairbanks today with Pacific Alaska Airways.
 At Medfra, on the North Fork of the Kuskokwim, just above Me Grath, Mespelt, his brother, R. A. Mespelt, and L. M. Roderick, are working one of the few lode mines in the KuSkokwim country
 This morning, Mespelt said he and his partners would continue to work the well known mine through out the winter as in years past. Vein structure in the Golden Horn, where assays vary from forty dollars a ton to well over a hundred dollars, has not changed, Mespelt said.
 Its still small proposition, he said Our veins pinch out and open up again, but because we have no overhead to speak of and all oi us work in the mine ourselves, we manage to keep the costs of mining | and milling down." From five to eight men are cm- ployed at the property and milling equipment consists of a ten-tor stamp mill and a five-ton ball mill Mespelt said.
 The property has been worked since 1926 For the first two years it was operated by the Treadwell. Yukon Company, but that company gave it up as "too small" Mespel said
 Mespelt was married Septembel g in Seattle to Eva Fraser. This i! his brides first trip to the Terri. tory They will make their home at Medfra.