The Wilmington morning star., 1947-06-25
AsPeglerSeesH
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era, had become one Of the most formidable
criminals of the new underworld of Hollywood,
New York, Miami and the grand circuit of
summer and winter gambling resorts.
He was officially an aristocrat Of this new
underworld, being listed in the international.
| confidential blue-book and all the lesser direc-
tories Of the FBI and the several agencies Of
the Treasury department..
The Treasury took a special interest in him
because the enforcement Of the narcotics act
is 9 responsibility Of the Treasury and Siegel
had established a milk route, as he and his
colleagues called it, by which drugs were de-
livered from sources in old Mexico to stations
in The United States.
The principal port Of entry was the Cali
foraia border, and Los Angeles and Hollywood
were important points of distribution and sale.
The musicians union in its recent con-
vention adopted a resolution which is slgnltl-
cant in this respect. The resolution would per-
NIT the expulsion from the unon OF any mem
Der who used or carried on traffic in mar
cotics.
I. was hastily explained that this was
me, ely an affirmative ges IRE in favor OF law
and order and not directed at any special
condition in the trade.
The truth is, unfortunately, that because SO
mary of the really active members OF the
union are employed in resorts OF tne uhoer-
world and the twilight world Of luxurious and
expensive dives run by racketeers, but patro-
nized by more or less respectable clients, they
are brought very close to the narcotics trade.
Tie few spectacular cases in recent years
in which prominent bands.nen were caught
using or handling marijuana and other drugs
are merely an indication.
Detection is difficult and has been especial
" so in the moving picture colony because
some of the public officials were VIGOROUSLY
friendly to Siegel. In one case in which he was
defendant on a minor charge the prosecuting
attorney actually took a most respectful at
THU lie toward Siegel who, naturally, walked
out discharged.
Siegel's latest and greatest venture was MS
Flamingo, a gambling resort and hotel al Las
VEGAS, New. Billy Wilkerson, OF Hollywood. the
publisher of a moving picture trade paper
and for years the operator Of expensive rest
auran.s patronized by the movie industry,
started the Flamino, intending, he said, to
run a restaurant only.
Las Vegas is close to Hollywood and is
heavily patronized by men and women who
earn tremendous salaries in the movies, In
radio and in the night clubs.
In the night club phase of the entertainment
industry, most of the big operators are either
underworld personalities themselves Or fronts
for catalog criminals.
Wilkerson soon got an offer from Siegel but
whether this offer was enforced by Muscle"
Wilkelson was unwilling to say as long as
Sie2e] lived.
At any rate. Wilkerson found that he had
not only one partner, Siegel, but two others,
one an old-time Philadelphia bootlegger OF the
Boo Boo Hoff gang, the other a westerner who
had no official criminal record, although his
underworld associations in Phoenix, Ariz.,
we're noted by both the FBI and the narcotics
bureau.
Wilkerson said the cost of the Flamingo
finally went to. IS, 900, 900 and that the place
was running behind because it was too lavish.
Siegel was bringing in some of the most
expensive night club and radio talent to en-
tertain his guests. Some Of them dropped
much of their pay back to Siegel at his
gambling tables.
There was a direct business relationship
here between The entertainment world and one
Of the most dangerous criminals in the coun-
Wilkerson finally goi GU. Of the Flamingo
epd his story was that he never suspected
Siegel's character until J. Edgar Hoover of
the FBI telephoned him and warned him that
he was in bad company.
Del Webb, one Of the owners Of the New
Yo.k Yankees, who got rich as a war con-
s~truct,on contractor on Army projects in
Arizona, was the building contractor and, as
recently as last winter, found himself with
a lien of $500, 900 against the Flamingo proper
ty.
He said at the time that if Siegel should
default he would Of course take over the place
but would not try to operate the gambling
house Instead he would sell it and get his
money out. Now, apparently, he must make
his decision.
1t would be navive, Of course, to believe
that either Wilkerson, a very worldly man,
or Webb didn't know the character Of Siegel.
Business men in large operations always in
v~estigate men with whom they do business
on such a scale if they don't know them
thoroughly in the first place.
George Raft, the synthetic tough guy Of the
movies, boosted that he was an old friend
Of Siegel and appeared as a character witness
Tor HIM in a trial in Los Angeles.
At the same time it was established that
Leo Durocher Of the Brooklyn dodgers was
an intimate member o. the same social circle.
Siegel's circle also included most OF Rats
Ne" fcrk friends, among them Lucky
Luciano, little Augie Carfano and a well-known
New York thief whose method is to lift ex-
pensive fur coats from women patrons of night
cluLs by a process called the switch, and sell
them to Hollywood customers at reduced
prices.
Tie switch is done in the checkrooms.
More or less drunk patrons, on leaving, are
mar led inferior fur coats, if they complain the
mistake is r%ectified. But often enough thew
don t notice the difference until the next day.
This fur thief was a member of Rats social
and gambling circle.
The permanent townspeople Of Las Vegas
organized last winter to try to drive out Siegel
because he was organizing to axe over politi-
cal control of not only Las Vegas but the
Whole state Of Nevada.
Slegel won the frs. round OF the political
tight a few months ago in a small election.
A few days ago the owner of an old es-
.aollshed Las Vegas hotel said approximately
this to him:
"Siegel, I understand it annoys you to be
called Bugs
Well, Buggy, one Of these days someone is
going to shoot you if that is what it takes
to get you out Of Las Vegas"
Delaware was a slave-holding state at the