American Organized Crime

Tommy guns, bootlegged alcohol, bathtub gin, and millions of dollars in profit were prolific in the world of organized crime! While other ethnic gangs existed, the largest and most well-known was the Italian mafia. Gangs provided protection, money, and purpose to members who were often young, poor, immigrant men. Prominent American cities such as Chicago, New Orleans, and New York City saw a large influx of organized crime with the passing of the 18^th Amendment, which banned the sale of alcohol. Continue reading to see how small street gangs turned themselves into some of the most powerful operations in America!

American Organized Crime Origins

Throughout the first part of the 20^th century, labor wars and the onset of prohibition created a perfect storm for organized crime in America. In the 1800s, gangs were first formed as a means of protection for immigrants. These gangs came to rely on each other, believing they could not trust the police or other gangs.

Prohibition agents destroying barrels of alcohol in 1921. Source: Wikimedia Commons

The early gangs eventually dissolved and were generally made up of poor immigrants living in crowded slums. However, the Italian immigrants who formed the mafia ("Cosa Nostra") came to define organized crime in America. The mafia would maintain power for decades, becoming incredibly powerful and wealthy through illegal methods such as extortion, selling stolen goods, and prostitution.

History of Organized Crime in America

The late 19^th and early 20^th centuries ushered in thousands of Italian immigrants fleeing difficult economic times. New York City saw 250,000 Italian immigrants by 1890, and by 1910 half a million immigrants called the city home. With the large influx of immigrants, gangs formed to protect their own and profit from illegal activities. These gangs often used violence to benefit themselves and sometimes victimized fellow immigrants in their communities. The influence of Italian gangs proliferated with the introduction of Prohibition in the 1920s.

Portrait of Al Capone, 1935 Source: Wikimedia Commons

Fig. 5 Image of the bombing of Nagasaki, 1945

In 1920 Congress passed the 18^th Amendment banning the sale, production, and transportation of alcohol. Temperance societies had popped up all over the U.S. by the twentieth century, and a new wave of anti-liquor sentiment ignited in the early 1900s. These societies often pushed that alcohol was the cause of lawlessness and the breakdown of families. With the banning of alcohol, Italian-American gangs and others took advantage and entered the profitable bootleg trade. The Italian gang was transformed into a highly successful business that used bribes, money laundering, and smuggling to increase profits.

Organized Crime in the 1920s

Before the Prohibition era, crime was considered random and unorganized, not serving business-like goals. Most gang members worked for corrupt politicians, doing their bidding and often bullying people to vote a certain way. However, the 18^th Amendment eliminated thriving bars overnight, and gangs instantly filled the void. Mobsters began bringing in new profits that required a business model to organize. While the decision to ban alcohol was made to slow down violence, it only became a catalyst for thriving gang businesses.

New York City Deputy Police Commissioner watching agents pour liquor into sewer following raid, 1921 Source: Wikimedia Commons.

Mafia bosses soon began making millions of dollars annually from the bootlegging business. Some profits were used to bribe politicians and police to look the other way. Organized crime was forced to increase their effort in running their operations. Many gangs had to hire accountants and lawyers to organize and funnel the money away. However, the booming bootlegging business ended when Prohibition was repealed in 1933. While bootlegging had officially ended, gangs' business practices would continue for decades.

Cosa Nostra "Our Thing"

As Italian immigrants came to America, the old mafia soon evolved into Cosa Nostra or "our thing." Cosa Nostra was interchangeable with the Sicilian mafia and became well known in America by the 1920s.

Louis Capone and Emanuel Weiss, American Mobsters in the 1930s, Public Domain, Wikimedia Commons

The Cosa Nostra is a descendant of the Mafia, but is different in its goals and organization. New York is believed to be the first large congregation of the Cosa Nostra, but the first significant grouping began in New Orleans. Like most immigrants, those who formed the Sicilian Mafia came to America to escape economic difficulties.

In the above quote, Robert Anderson explains that the new Cosa Nostra prevalent in 1920s America did not rely solely on familial ties, but spread out to encompass business partnerships that benefitted the gang. The Cosa Nostra had evolved into an incredibly complex organization with various levels, authorities, and specialties, making organized crime in America highly profitable.

Leaders of American Organized Crime in the 1920s

Every gang needs a leader, and in America, the organized crime bosses became infamous figureheads of their operations.

Paul Kelly

Paul Kelly is sometimes referred to as the father of organized crime due to starting the Five Points Gang, one of the first dominant gangs in New York.

Italian American mobster Paul Kelly Source: Wikimedia Commons

Kelly became well known for exploiting young, poor men and recruiting them into the gang. During the early 1900s, Kelly became known as one of the most successful mobsters in New York. The Five Points gang would produce some of the most infamous mobsters of the 20^th century, such as Johnny Torrio and Al Capone.

Giovanni "Johnny" Torrio

Moving to New York with his mother in 1884, Giovanni Torrio's mother Americanized her son, giving him the name Johnny. Torrio began running with the James Street Gang and opened up an illegal gambling ring. Paul Kelly, the mafia boss at the time, brought Torrio into the business, teaching him how to look legitimate.

Johnny Torrio leaving the federal courthouse in New York

during his trial, 1939. Public Domain, Wikimedia Commons

Torrio broke away from Kelly to start his empire that involved prostitution, loans, and opium. Torrio eventually began mentoring Al Capone, who would become one of the most infamous mob bosses.

Al Capone

Al Capone was one of Chicago's most influential and well-known mob bosses. In his youth, Capone joined a New York gang, where he would meet Johnny Torrio. At 19, Capone was a father and husband who worked at a construction company in Baltimore for a short time before returning to work for Torrio in the bootlegging business. Torrio turned over the business to Capone in 1925. As Capone gained notoriety, he spent his wealth publicly, not concerned about drawing attention.

Mug Shot of Al Capone in Philadelphia, Pennsylvania, where he had been arrested for carrying a concealed weapon, 1929 Source: Wikimedia Commons

It is estimated that Capone was worth roughly $100 million in 1920. Capone became well known for using intense violence to assure his dominance. For example, in the St. Valentines Day Massacre in 1929, Capone decided to murder seven rival gang members, souring public opinion. President Herbert Hoover responded by taxing income on illegal ventures, providing a solid case against Capone. In 1931 Capone was officially convicted and sent to prison for 11 years.

The End of the American Gangster

While mob bosses and gangs continued to thrive through Prohibition, the public and the federal government started to notice.

J. Edgar Hoover sitting at his desk 1930s-1940s Source: Wikimedia Commons

The burgeoning bootlegging industry had been profitable for gangs and allowed them to protect themselves fully through weapons and alliances. Local police forces lacked appropriate tools to fight organized crime, and their officers were often already bribed by gangs. The fledgling Federal Bureau of Investigation (FBI), under J. Edgar Hoover would begin implementing critical new practices (such as fingerprinting) to help bring down mafia bosses. While the FBI encountered several failures, it ultimately captured or killed many public enemies by 1934.