Evening star., 1951-05-01
Gangsfers WouIdG Gain
From Legal Gambling,
Report Declares
BY the Asseeiated Press

Report Declares
BY the Assoeiated Press
The Senate Crime Investigating
Committee. said today that legaliz-
ing gambling generally would play
into the hands of gangsters.
Just because some States have
sanctioned pari-mutuel betting on
racing, the committee said in its
report to the Senate, it does not
follow that it would be wise to le-
galize other forms of gambling "far
more likely to be dominated by un-
derworld elements"
Those States which have le-
galized pari-mutuel betting have
done so in an attempt to satisfy
the gambling urge in the manner
which can be most closely con-
trolled and least likely to be ac-
companied by the familiar evils
Of gambling" the committee said.
while race track wagering un-
doubtedly results in individual
personal tragedies as a result OF
undisciplined betting, the damage
can be more or less limited to per-
sons who can better afford to
incur financial losses. -.
"In the opinion of this commit
tee here is no sense or logic in
legalizing the greater evils of OFF,
track betting simply because it
has been the considered Judgment
of number of States that pari-
mutuel betting can be controlled
and operated without undue detri-
ment to society.
There has not been presented
to this committee any plan for
the extension of controlled gam
bling which carries with it a sub
stantial chance of success. On
the contrary, each plan for ex-
tending legal gambling appears to
play into the hands of the gang
ster element"
This bootlegging operation is
fully reminiscent of the 1920s. the
Senators said. Activities included
"hi-jacking of trucks, camouf1ag-
ing of liquor shipments, use of
fictitious names, counterfeiting of
Federal and State liquor stamps,
violation of ICC regulations and
corruption of public officials.
Black Market Link Revealed.
Some of the wholesalers in
volved in the current ring were
found by the committee to have
been connected with a huge World
War II liquor black market ring" ;"
Leading distillers, it was re-
ported, were asked by Southern
authorities to cancel the franchise
Of distillerS found to support the
bootleg ring, and promised to do
SO. Conditions failed to improve
however" the report said.
The industry, the Senators de-
clared, takes the attitude it does
not Share enforcement RESPONSE
bility with Federal and State
agencies, which should weed out
undesirables" through the power
of licensing. The Senators ex-
pressed the view that Federal
agencies should tighten control
and that additional legislation is
also needed"
With regard to the automobile
and trucking business the Sena-
tors pointed out that Joe Adonis
in Brooklyn and Anthony D'Anna,
a former Detroit bootlegger and
racketeer, have entered this field
with marked success. nS s
AdOnis Controlled Auto Sales.
Adonis. it was said, controlled
the sale Of a large number Of
automobiles from a distributor
who ran up an onsavory record
of black-market deals during
World War H."
"Longie" Zwillman, described
as another prohibition racketeer,
today "owns a number of very
profitable legitimate enterprises
in the motor and trucking field.
In Minneapolis and st. Paul, it
was said. the citizens were rocked
by evidence showing that the
hoodlum element had nearly sue
ceeded in taking over the Twin
City eRapid Transit Co." In
stances Of gangster penetration
OF the transport field were cited
in Cleveland and New Jersey.
Hoodlums have bought into
some of the smaller steel COM
panies in Detroit and Pittsburgh.
the Senators said, while Frank
Costello and Frank Erickson have
invested in oil interests in Texas
apparently in efforts to hide
Illegal gains from the tax collec-
tors. A member of the Capone
syndicate, 1t was pointed out, was
involved in Wyoming oil deal
with well-known hoodlums from
Vari0IlS n1id ~WoSfoy.y1 nif;o~