Evening star., 1950-04-30
Binoggio
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of the racket which the jury list
ed as doing this gross business:
Dice games: $19 million.
Numbers or policy racket
$3.5 million.
Bookmaking operations on
horse races: $8.5 million.
Gives Source of Information.
I The grand jury said that horse
race information comes to the
local bookmaketrs from the Stand
ard News Service, a Kansas City
enterprise that is owned and con-
trolled by Charles Gargotta (now
deceased) Tano Lococo, Eddie
"Spitz" Osadchey. and Morris
"Snag" Klein, doing business as
the University Distributing Co.
THE Standard News Service re-
ceives its horse race news from
Continental Press Service over
wires and instruments it leases
from the Western Union Tele-
graph Co. This news is trans
mitted from Chicago to other
cities throughout the United States
simultaneously with it's trans
mission to Kansas City. 1t is the
same organization that was
operated by James Ragen of Chi
cago. ILL.,. before his murder IN
1916. and Mickey Mcbride of
Cleveland, Ohio"
The report continued:
Undoubtedly the most sordid
and vicious situation or condition
existing in Jackson County, Mo-,
uncovered by this grand jury is
the tax-fixing racket, perpetrated
under the administration of
George r. Clark former county
assessor. by means of which
thousands of dollars have been
iextorted by jacking up or threat
ening to jack up the real estate
or personal taxes of legitimate
business organizations. Indiffer-
ences or opposition to the over
lords Of the Kansas City UNDER
world by these legitimate business
houses inevitably resulted in in
exorable and swift retaliation.
adjustment" Practice Attacked.
THE more extensive phase of
the tax-fixing racket involved the
tax adjustment practice. THE
jury report said. Claude Lewis,
a deputy assessor under Clark,
kept properties off the tax rolls
and in concert with professional
tax adjustors would adjust real
estate taxes for properties on
which he had assessments doubled
or tripled.
Edward D. Collins, ST., another
deputy assessor under Clark, su-
pervised the personal property
and the merchants and manufac-
turerS' tax adjustments. BY rea-
son of the liaison between Lewis
and Collins on the one hand and
the tax adjuster' and the un-
scrupulous citizens on the other
hand, by the practice of raising
and then lowering taxes for fee,
Jackson County. Missouri, has
been deprived of vast sums of
money to the detriment of this
community but to the profit of
Lewis and Collins, the professional
tax fixerS and Others"
The report said the reach and
ramification of the Kansas City,
Missouri, underworld are not,
however, confined to Kansas City
and vicinity
Influence Felt in Iowa.
The jury said it's influence
reaches to Council Bluffs. Iowa.
The report gave this illustration:
Early in 1912 Dick Mohoney
and Bill Hill of Council Bluffs,
Iowa, opened up Council Bluffs
with the Stork Club in competi-
ton to the well-established Chez
Paree. From small beginning
in 1912 the Stork Club developed
into an elaborate gambling casino.
In 1945 Mohoney and Hill sold
the Stork Club to 'Chickie' Ber-
man of Minneapolis, Minnesota
and Al Abrams and Cy Silver OF
Omaha, Nebraska.
These three men operated il
until 1945 follows text when
Berman and Abrams sold out their
interests and it was reopened un-
der the management and owner
ship of Cy Silver, Max and Elmer
Abramson, Fred Weyerman and
Fred Barnes. Under the guidance
and management of these part
ners the Stork Club was remodeled
and over $45 1000 was expended ir
undermining the gambling casino
that was operated IN connection
with its dinner service which
served as cover for the gambling
activities.
Club Was Taken Over.
"Slot machines, black jack, rou-
lette wheels, dice tables and horse
books became the chief attrac.
tions. In early 1947 the Kansa.
City underworld stretched out 1t.
clutches to Council Bluffs. c,
Silver relinquished his interest fol
a pittance and Charles Hutter
Morris Klein. George Beskas, Ed.
ward Osadchey, alias Eddie Spitz
and Earl Kennedy took over one.
half interest without a dollar in.
; vestment.
THE other half interest was OBJ.
tanned by Fred E. Barnes O.
Omaha, Neb., for $4,000. TIL,
Stork Club continued 10 eperat,