Evening star., 1951-05-01
50 Types Of Business
Invaded by GangIand,
Senators Disclose

Gangsters and racketeers have
tnflltrated so areas of legitimate
business in the United States, i'm
porting many tactics of the boot
logger, the terrorist and the black
inarketeer, the Senate Crime re-
port pointed out today.
The list released by the Ke-
fauver committee leads off alpha
betically with advertising and
winds up with transportation,
while the liquor industry heads
the group chosen as examples OF
the infested areas.
Scores of specific instances were
cited in which the Capone heirs
and fellow mobsters have cap
tured or penetrated legitimate en-
terprises with resulting "unscrup-
ulous and discriminatory practices,
extortion, bombing and other
forms of violence to eliminate
competitors and to compel Gus
toners to take articles sold by the
mobsters."
Banking and Finance Cited.
Other industries cited as exam
Piles were automobile and truck
ing, transportation. steel. oil.
banking and finance. garment
manufacturing, juke boxes. slot
and vending machines, laundry
and dry cleaning, real estate, no.
tells. restaurants and night clubs.
food products and labor unions.
In the latter area, however, the
committee found that 'the hood
lum element has been driven to
the wall in all but few important
instances" An outstanding ex-
ception, it was said. is "the In
ternational Longshoremen's Union
on the East Coast
Most of the report space was
devoted to gangster infestation
of the liquor industry, especially
IN the field of distribution. The
Senators took the industry to task
for failure to assume it's proper
Share. of enforcement responsible
ity with Federal, State and local
control agencies.
-. Laws Partly to Blame.
:. Too. ''our laws and laW-enforce-
ment agencies" are at least partly
to blame. the report declared.
The inf1ltration of former boot
leggers into the legitimate trade
was "a natural one" the COM
nittee said, but unfortunately
many racketeers found it hard
to drop methods of operation
which characterized their rum
running days"
Investigators found the former
bootleggerS involved in huge
black market liquor deals during
World War II and in present-day
bootlegging operations into dry
areas" ...-.
Public Industry Concerned.
The public interest was 'vitally
concerned" in the hoodlum opera
tions, especially around Kansas
City. Here the Senators found
two ''Mafia hoodlums, Joe and
Vincent di Giovanni, holding ex-
elusive franchises for several lead
ing brands of whisky.
The Senators said these licenses
were withdrawn after their dis
closures, but this action was
nullified by the subsequent reis-
suing of these licenses to the sons
Of these gangSters."
The investigators found Capone
heirs and their hackers deeply in
yolved in the liquor business in
Chicago, while Frank Costello and
his friends controlled leading do
mestic and import brands from
headquarters in New York and
parts of New Jersey.
AS a result of wide spread gang
ster penetration, the Senators said,
they called meeting of revenue
and liquor commissioners from the
South last March. These COM
missioners told a sordid story of
bootlegging operation extending
into the South out of Cairo, H., "
it was reported.