The coastland times. [volume] (Mnateo [i.e. Manteo], N.C.) 1947-1959, 1952-01-11

YET the TAX COL1uuSSlOu PIOAAPsAS
granted licenses to the same hood
lums.
This, as the dual-roled Mr.. Moore
explained, was a sort of grand
daddy clause" to protect the peo-
pie who were in the business when
the law was passed. When Counsel
Rudolph HALEY asked how the
commission possibly could have IL
censed a certain gambler who had
a fragrant record for Illegal opera
tons in other states, Moore replied:
How was he going to learn the
businesS?"
We also were captivated by the
unique role of Clifford Aaron Jones,
attorney at law, lieutenant gov
ernor Of the state and partner
in the Pioneer Club, the Golden
Nugget, and the Thunderbird Ho-
tel, all gambling operations. Lieu
tenant Governor Jones' 21z per
cent interest in the Pioneer Club,
which he purchased for $1,000, has
yielded him approximately $14,
a year, and his / per cent interest
in the Golden Nugget, for which he
paid $2S,310 pays about $4,000.
The move which placed the tax
commission in the business Of lie
censing gamblers, as matter Of
fact, was precipitated by Robert
E. Jones, district attorney Of the
county in which Las Vegas is 10
Gated and a law partner-though
no relation-to Lieutenant Cover
nor Jones. He wrote the tax COM
mission that the gangsters were
getting too quarrelsome since Sic
gels assassination and that war
fare might break out at any time.
Siegel, an associate Of Lucky Lu-
ciano, Frank Costello, Joe Adonis
and other rulers Of the Eastern
mob, moved into Las Vegas around
1912, and established the plushy
Flamingo Hotel. Working with Moe
Sedway, ex-convict and longtime
racketeer, he was the indiSputable
car Of the Nevada wire service.
Actually, he was believed to have
muscled in as q silent partner Of
every bookmaker to whom he sold
the wire service and he would re-
fuse service to any bookie who
would not stand still for the
muscle"
He was shot to death in the
home he was leaving for Virginia
Hill in Beverly Hills, Calf. There
are two theories for his assassina-
ton: ~ He attempted to carry his
muscle" tactics too far, and/or
(2) His last East coast and Chi
cago mob hackers were displeased
with the way he had managed their
Western interests.
The Fischetti brothers Of the
Chicago Capone syndicate, the
Frank Costello-Frank Erickson in
terests in New York, and certain
members of the Detroit mob had
invested heavily in Bugsy's Flam-
lingo, which reputedly cost between
$4,000, 600 and $4,000, 900. They were
said to be displeased with Bugsy's
management Of the expensive prop
erty.
Virginia Hill is said to have
known that the killing was to hap.
pen and she was out Of the United
States at the time. In New York
later, she furiously disclaimed such
knowledge.
Anyway. after SiegePs murder,
the Flamingo's operation was tax.
en- over by Morris Rosen and Moe
Sedway. They attempted to carry
on Bugsy's race wire monopoly
but weren't tough enough.
Soon the Stearns brothers, opera
tors Of the Santa Anita Club, mex
door, began tapping the Frontier
Clubs race wire. 1t was then thai
the district attorney began fearing
that shooting would break out, and
the licensing arrangement. which
has led to dubious peace among the
gamblers In Nevada, was set UP.
Next week: California: Whels
Lobbyists Grow Big and MObster.
Thrive.
Condensed from the book, 'Crime In
America" by Estes Kefauver. Cpr. 1881
Pub. by Doubleday. InGI. Dist. Genera
Features Corp.-WNU.