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Racketeering and Failure at the Gotham Hotel

Background of the Gotham Hotel

Prior to 1943, the Gotham Hotel had a much different reputation than what it has today. From its construction in 1924 until the early 1940s, the Gotham hotel was similar to any other hotel in Detroit and had an entirely different name, the Hotel Martinique[1]. However, there were not nearly enough hotels that catered to the black community during this time, let alone desirable ones. As a result, In 1943 John White, Walter Norwood, and Irving Roane purchased the hotel with the hopes of making it an oasis for the black community in Detroit[2]. The Gotham Hotel became the most well-renowned hotel for black people in Detroit and regularly hosted popular celebrities and athletes, such as Langston Hughes and Jackie Robinson[3]. It boasted beautiful rooms and critically acclaimed restaurants. After nearly 20 years of success, the hotel closed its doors to the public in 1962[4].

The Raid at the Gotham Hotel

A large downfall of the Zerilli Era came in 1962, when a gambling racket run inside the building formerly occupied by the Gotham Hotel was raided by the Michigan State Police, aided by the IRS and local authorities [5][6][7]. The raid was no small feat, since the security at the hotel was tightly controlled by the use of a “building-wide buzzer alarm system” and an extensive camera system that linked to a television in the lobby[6]. All authorities involved handled the case with complete secrecy when investigating the hotel, and at 5:00 pm on November 9th, 1962, 112 officers, led by Anthony Getto of the IRS’ intelligence division, raided the hotel[7].

Upon entering the hotel and trying to use the elevators, it was found that the power to them was cut, and the officers had to use the stairs to reach all nine stories and 250 rooms of the hotel [7][8]. On the top floor, a crooked dice game was found with $5,000 on the table [7][9]. On the other nine floors, bet slips, adding machines, counting machines, guns, ammunition, and at least 30 safes were found [7]. The next day, the safes were cracked to find a grand total of $49,200 in the safes alone [9]. When everything was totalled, the raid amounted to 160,000 bet slips, $60,000 in cash, and 33 adding machines [7][8].

In the raid, 41 arrests were made [7][5]. Nine of which were held in federal custody and  arraigned the next day on charges for not having a gambling stamp and evading taxes [7]. Also in federal custody were John White, Earle Cuzzens, Benjamin Ormsby, Curtis Lewis, James Cummings, James Gholston, Nick Richardson, Delores Stone, and Dorothy Grier [7]. The rest of those caught in the hotel were the ones found playing dice on the tenth floor, and they were placed under investigation for violating Michigan gambling laws [7]. John White and Earle Cuzzens were released on $10,000 bond for not having a Federal gambling stamp [9]. The other individuals found in the dice game were tried on charges for gambling or conspiracy [9].

The Consequences of the Raid

The raid on the Gotham hotel had many financial consequences. The numbers operation at the hotel was said to bring in 21 million dollars yearly, so that revenue for the hotel operators and their syndicate helpers which included Anthony Giacalone and Pete Licavoli was now gone[10]. The raid had a larger effect on the gambling scene in Detroit as well. John White, Earl Cuzzens and James Cummins were among the better known operators that were arrested[10]. In John Edwards' 1963 senate testimony, no gambling location could boast immunity in Detroit anymore[10]. This meant many operators moved their gambling operations outside of the city. According to Edwards, the operators that stayed were continually on the move. This made policing easier because there were more opportunities to observe them and catch their mistakes[10]. Trust in any gambling operations in the Detroit area also faltered because during the raid, marked cards and loaded dice were confiscated and made public[10]. Finally, the phone number of Anthony Giacalone and Pete Licavoli appeared in the personal phone directory of John White which was confiscated during the raid. With this evidence, the police began to confirm the longstanding belief that the numbers operators at the Gotham were connected to the Detroit Syndicate[10].

Who Were the Players?

The Gotham Hotel was frequented by an opulent and affluent clientele during its heyday in the 1940s through the early 1960s. The hotel’s original owner was John White, an entrepreneur and leader that had a pivotal impact on the Detroit community as well as the black community at large[11]. As a black hotel, the Gotham Hotel was a paradise retreat for local dignitaries, celebrities, and more to gather together and enjoy the company of high ranking officials and socialites. John White filled his hotel with an unsavory group of characters that contributed to the Hotel’s future corruption and gambling activities. It included black businessmen, gamblers, and mafia affiliated cronies including Anthony Giacalone and Pete Licavoli.

Of these mafia bosses were two pivotal protagonists in the Gotham Hotel story: Anthony (Tony Jack) Giacalone and Pete Licavoli[12]. Tony Giacalone was a Detroit mafia gambling boss, and he teamed up with Licavoli to manage the gambling/illegal rackets present at the Gotham Hotel. Giacalone was a powerful boss, stabilized in the Detroit mafia ring and a powerful gambling player. Tony Jack made a name for himself as a soldier in Detroit’s growing Italian underworld and worked for a number of local rackets with Pete Licavoli and Joseph Zerilli. Giacalone eventually became a capo in the Detroit Partnership and a stress boss. Giacalone had a vast piece of the Gotham Hotel action and reaped benefits from the profits of the Hotel. Detroit Police Commissioner George Edwards declared war on the Giacalone gambling operations at the Gotham Hotel. Giacalone was involved in gambling rackets, baseball and football pools, and off track betting.

...

Prohibition Era

The Detroit River

Throughout the Prohibition era, from 1920 to 1933, the Detroit River was utilized to facilitate the flow of illegal liquor from Canada to Detroit. The bootleggers who brought the booze from Canada to Detroit along the river were referred to as rum runners.  These bootleggers also owned the majority of the speed boats that were afloat in the river. These boats aided the bootleggers to transport the booze from Canada and into Detroit. Detroit had a dedicated fleet of patrol boats to prevent the transportation of liquor across the border. However, this system was not as effective as the government wanted because the federal officers on duty have been caught taking bribes to facilitate and look the other way of the transportation of liquor from Canada.[13] Towards the end of the Prohibition, the gangs began upgrading from their previous smaller speed boats to larger boats that were able to manage the heavy seas and made it possible to carry more booze. Also, they were adding even larger motors so their boats became faster and they were able to do their jobs even faster and maintain their schedule.[14] Detroit continued to add more of a police presence on the river to try and eliminate the transportation of alcohol from Canada to Detroit. The issue with this is that the river is so expansive that the rum runners were able to go around these checkpoints by going more out of the way. Lastly, the bootleggers allegedly believed that it was impossible for the government to block the whole river without having the police lineup shoulder to shoulder and that they would always be able to find a way around the police.[15] Another important way bootleggers are able to smuggle booze is through the bridge and tunnels that connect Detroit to Windsor.

The Detroit-Windsor Relationship

In the late 1920s, following the 18th Amendment to the United States Constitution, the Detroit Partnership capitalized on new transportation mediums in order to conduct their illicit activities revolving around the distribution of alcohol. A major benefit of Detroit’s location during the prohibition era was it’s close proximity to the Canadian border and neighboring city: Windsor, Ontario. Throughout the decade, like the United States, the province of Ontario also had prohibition; however, it did not include a ban on the production and exportation of alcohol[16].

Up until the late 1920s, both goods and civilians crossed the Detroit-Windsor border strictly via ferry, since there was no bridge. The thriving automotive industry within Detroit encouraged immigrants from Canada to seek work in the United States. While the influx of Canadian workers to Detroit helped boom its economy; nevertheless, the current primary means of transportation at the time, ferry or private watercraft, invited bootleggers to shuffle their illicit goods through large crowds of immigrants[16]. At the same time, initial plans and blueprints to build the Ambassador Bridge and Detroit-Windsor Tunnel were underway with overwhelming public support as Detroiters became upset with the apparent lack of infrastructure[16].

By the time the Ambassador Bridge and the Detroit-Windsor Tunnel were built in 1929 and 1930, respectively, the liquor trade was firmly under the purview of the state and provincial governments[16]. For many, the opening of the bridge became an important symbolic moment representing the close relationship between Americans and Canadians. The city of Windsor and Detroit-Tunnel were consequently nicknamed “Windsor the Wicked” and “Detroit-Windsor Funnel” within local dialect as the relationship between the two neighboring cities of received a negative reputation due to illegal liquor trading[16]

Borderland

The Detroit-Windsor border is also known as a Borderland, providing a resource [for economic growth] for these neighboring cities. A Borderland is advantageous for many reasons, including the ability to exploit resources from either side of said border. This is not only essential but a defining characteristic of a Borderland. Additionally, individuals tend to utilize Borderlands for social, cultural, or economic gain; in the case of the Detroit-Windsor border, this is certainly true.

Historically, the Borderland of Detroit-Windsor is very unique; it was originally where workers had immigrated for the automotive industry. Since the border was already actively being used for trading purposes, it was simple to begin the business of smuggling alcohol across the Detroit River during the prohibition era.

The cities swiftly became taken advantage of for their differences in laws, regulations, exchange rates, differing strength of law enforcement, amongst other things, but most importantly, their close proximity. Since the act of smuggling was seemingly being overlooked across the Detroit-Windsor border, mafia organizations like the Detroit Partnership and the Purple Gang were quick to jump on it as a new source of income. This made smuggling an easy, reliable, and extremely lucrative business model for them.

Fundamentals of the Mafia Prohibition Economy

Prohibition opened the door for some of the largest illegal crime syndicates in the United States to form. At its peak, the black market for alcohol would be Detroit’s second largest industry, second to only the colossal automotive industry[17]. Even more astounding was the estimate that the auto industry meekly surpassed the illegal alcohol industry by twenty percent. Corruption and smuggling ran rampant, turning small and unassuming surrounding towns like Ecorse into “Michigan’s Barbary Coast”[17].

Organizations like the Detroit Partnership and Purple Gang smuggled as their primary business, but soon branched into extortion, illegal gambling, and the operation of speakeasies. Through these schemes, mafia leaders were able to accumulate vast wealth and purchase homes in affluent neighborhoods.

One great example of this is Joseph Zerilli, an eventual Detroit mafia boss, who found his roots in organized crime through prohibition era schemes[18]. Zerilli became recognized by the police after the period of 1919-1922, as the police frequently arrested him for prohibition violations, robbery, and murder accusations among other crimes. Additionally in 1931, he was caught up in the murder case of Chester LaMare[18]. The authorities supposed that it was a move for Zerilli’s East Side gang to take control of the Detroit criminal scene. Eventually, Zerilli became the leader of an illegal organization that brought in over $150 million in the 1960’s and was identified to be at the Apalachin meeting in 1957[18].

Boss "Singing Sam" Catalanotte (1921–1930)

Presiding over the shaky peace arrangement of Detroit's Giannola-Vitale War was a Giannola gunman named Salvatore Catalanotte. Catalanotte was one of the few men who was both respected and well-liked among the competing Mafia groups.

The Detroit Mafia can be traced back to the early 20th century while the roots of the Detroit Partnership can be traced back to the “Motor City” Mafiosi. Gaspar Milazzo, a very influential Prohibition-era mobster, was born in 1887 and was originally from Castellammare del Golfo, Sicily. He decided to relocate to Detroit from Brooklyn in 1921 after he and fellow Castellammarese Clan leader Stefano Magaddino were implicated in a New Jersey area murder concerning a longtime feud between two old world Mafia factions from Castellammare.

Milazzo was a loyal ally of the Bonanno-Magaddino-Bonventre clan of Castellammare, which in the early 1900s was at war with the equally powerful Buccellato clan over rights to control their area of Castellammare in the province of Trapani in the early 1900's. The war between the two Castellammarese Mafia clans followed many Castellammarese immigrants and Mafia members who found their way across the Atlantic to the large American cities like New York City, Chicago and Detroit where they settled and continued to participate and organize Mafia activities.

Gaspar Milazzo, known as "The Peacemaker" and Stefano Magaddino, known as "The Undertaker", were two of the earliest Castellammarese Clan leaders to settle in the Brooklyn area. The two of them maintained a great deal of influence within the local Mafia and the various activities that their group controlled, such as gambling, the Italian lottery, loansharking, extortion and various legitimate business interests. The Mafia crew based in Brooklyn led by Milazzo and Magaddino soon found itself opposed by the members of the Buccellato clan who had also settled in Brooklyn and were involved within the Italian underworld.

Eventually, the continued violence between the two groups caused Milazzo and Magaddino to flee New York City in 1921 after they were wanted for questioning in connection with the murder of a Buccellato clan member after the man that Milazzo and Magaddino they allegedly contracted to do the hit began to cooperate with authorities. Magaddino fled to Buffalo, New York, while Milazzo managed to make his way to Detroit, where both mafiosi used their high level positions within the "Castellammarese Mafia.” The pair also used their connections to other powerful and influential Mafia leaders in New York, Chicago, Philadelphia, and Eastern Pennsylvania to establish crime families in these areas. In fact, the relocation of Milazzo and Magaddino and their establishment of powerful East coast Mafia families would play a big role in the eventual unification of the American Mafia, known to its members as La Cosa Nostra or "This Thing of Ours."

Gaspar Milazzo quickly established himself as a powerful and influential mobster within the Detroit underworld and would be recognized as a capable underworld adviser and mediator of Mafia disputes; hence, the epithet "The Peacemaker". Detroit had a large Sicilian immigrant population and was one of the East Coast's bootlegging hubs. At the time of Milazzo's arrival to Detroit, the Jewish Purple Gang controlled much of the liquor trafficking in the area. Because of his mediation skills, many of the area’s mafiosi sought Milazzo’s counsel and leadership throughout the 1920s. Because of this, Milazzo maintained a high degree of involvement within the local Mafia and the Prohibition era rackets.

Milazzo aligned himself with Salvatore Catalanotte, known as "Singing Sam", the local head of the Unione Siciliana and one of the leading and most respected Sicilian Mafia bosses in Detroit, despite only being in his mid 20’s at the time. Milazzo and Catalanotte led two of the more powerful and influential Mafia factions within the Detroit area. Together, they would align the city's Mafia factions into a loosely organized and cohesive unit that controlled bootlegging, gambling, narcotics, prostitution and other rackets within the city of Detroit and surrounding areas.

After the violent and bloody Detroit Mafia wars of the 1910s, rivalries and smaller conflicts continued between the various Mafia factions or gangs based in the city and surrounding areas. This took place until 1920, when Sam Catalanotte was able to broker an uneasy peace and organize the local gangs into a loosely unified Mafia group under what was known as the "Pascuzzi Combine", established by Catalanotte with the co-operation of all the top local Mafia leaders and their factions.

Soon after Gaspar Milazzo arrived on the Detroit underworld scene in 1921, he began to assist Catalanotte with the continued unification and leadership of the local Mafia. With Catalonotte's death in February 1930 at the age of 36, Milazzo maintained his position as a high-ranking member of the Detroit Mafia and continued to oversee the peace between the local Mafia factions.

Milazzo was then recognized as the senior Mafia leader in the area and the boss of the local Mafia. However, the death of Catlanotte was an event that threw the Detroit Mafia into chaos. Catalanotte and Milazzo were both respected Mafia advisors and had managed to maintain an uneasy peace between the various mafia factions within the Detroit underworld for roughly a decade. After Catalonette's death, Milazzo found himself in a precarious position and would ultimately end up only leading the Detroit Mafia as the undisputed boss for two months.

Milazzo was a close associate of the Eastside Gang, led by Angelo Meli, William Tocco and Joseph Zerilli, three of Detroit's leading mafiosi and underworld bosses. Milazzo's Mafia group and the Eastside Gang maintained alliances with other mob factions, including the River Gang, led by brothers Thomas and Peter Licavoli who shared the local bootlegging rackets and various underworld activities with each other.

Other criminal groups active at the time included the Westside Mob, a combination of Wyandotte area mob boss Joseph Tocco, known as "The Down River Beer Baron" and the LaMare Gang based in Hamtramck, led by Chester "Big Chet" LaMare. Subtle rivalries and disputes continued throughout the 1920s between the various Detroit Mafia factions, but for the most part the top Mafia groups maintained a working alliance under Sam Catalanotte. It was not until Catalanotte died and more serious Mafia rivalries and conflicts occurred.

The Purple Gang

With immigrants flowing into the United States throughout the late 19th century and early 20th century, Italian mafioso and their families settled into the neighborhoods of the thriving city of Detroit, Michigan. The mafia had a presence in and influence over Detroit long before the years of Prohibition. With the implementation of Prohibition laws, Detroit became notorious for smuggling alcohol from Canada, across the Detroit River, and into the States [19]. While the Detroit Mafia was involved in this illegal smuggling and bootlegging, Prohibition created the opportunity for new gangs to gain power. One of the most infamous of these was a group of Jewish gangsters called the Purple Gang[20].

At the time, organized crime was prominent in most U.S cities, and Jewish gangs had a large influence across the country[21] . During the years in which the Detroit Mafia was fighting amongst themselves for control over the Italian underworld, the Purple Gang grew in strength and numbers[21]. These men used their connections across the Canadian border to create a bootlegging business that competed with Chicago and New York’s crime operations[21]. By the late 1920’s they ruled the Detroit underworld with successful operations in rum-running, narcotics, gambling, prostitution, and extortion[22].

Throughout the 1920s and 1930s, the Detroit Partnership and the Purple Gang experienced a mixed relationship, working cooperatively and clashing. As Prohibition continued, the Purple Gang established its mark in the city, and territory between the two groups started to take shape. In the early days of Prohibition, the Purple Gang held territory on the Detroit River, the Eastside Mob manned the St. Clair River, and the Westside Mob claimed the Rouge River [23]. While the respective groups within the Detroit Partnership primarily smuggled alcohol from Canada to the United States, the Purple Gang was known for also hijacking liquor shipments along the water [23]. Through its valuable territory and strong ties to Canadian distilleries, the Purple Gang supplied whiskey to Chester LaMare for a period of time[23]. They even had an impressive business of supplying the infamous Chicago gangster, Al Capone, with Canadian whiskey[21].

The Purple Gang and the Detroit Partnership both owned and competed throughout Detroit by owning several blind pigs establishments, fighting for revenue. The Purples and Detroit Partnership both used these to boost their profits, taking advantage of the ban on alcohol in Detroit. It also led to more illegal revenue streams like prostitution and gambling within these establishments[24].

While the Purple Gang was not a major player in the Crosstown Mafia Wars and was left relatively unscathed, there were still a few Purple Gang casualties as the group was found in the war’s crosshairs. Notably, Donald Overtstein, a hijacker for the Purple Gang, was found dead in an alley, although little additional information surrounds this murder[25]. There are not many records of competition between the Italian mobs and the Purple Gang, possibly because mob families had kept much of their operations secretive. The two groups also lived in separate neighborhoods, as different minority and ethnic groups at the time did not inhabit the same areas.

The two groups coexisted throughout Prohibition. However, toward the end of this era, the Detroit Mafia began to move against the Purple Gang[21]. The concentration of power post-Crosstown Mafia Wars and decimation of the Purple Gang after the Collingwood Manor Massacre [26] left the Detroit Partnership in an advantageous position relative to the Purple Gang.  During the massacre, three gang members: Joe Lebowitz, Hymie Paul, and Isadore Sutker, were members of the Purple Gang subgroup, the Little Jewish Navy, but they wanted to form their own gang[27]. They were killed for this, and the driver of their vehicle, Sol Levine, turned state's witness against leaders of the Purple Gang[27]. The fall of the Purple Gang was the result of egos and jealousy[27]. The Purples continued to fall apart when two gunmen for the Purple Gang, Abe Axler and Ed Fletcher, known as Public Enemies 1 and 2 in Detroit, were murdered in 1933. They were each shot five times and were left holding hands in the back of a car in Oakland County[28]. The case was never solved but there is speculation that it was due to the bad blood between the two and the Licavoli gang within the Detroit Partnership, but could also have very well been the Purples themselves as the gang was falling apart and there was bad blood amongst the members[28]. This murder and the involvement of the two men in both gangs illustrate that there was heavy tension and rivalry between both gangs.

The Purple Gangs’ rise to power over the Detroit underworld did not last long, as members became reckless and many were arrested or killed. With new leadership by Joseph Zerilli and the formation of the Detroit Partnership, the Italian mafia was able to regain power[21]. Prohibition - the origin of the Purple Gang’s primary revenue source - became repealed in 1933, and Abe Bernstein, an original member of the Purple Gang, was left as the depleted group’s leader[23]. Consequently, in what was marked as a rare peaceful transfer of power, Bernstein ceded the Purple Gang’s gambling arm to Zerilli and Tocco[23]. The final end to the Purple Gang was an interaction between a purple, Harry Millman, and a member of the Italian Mafia where Millman spat in the face of the mafioso[27]. The Mafia got revenge by killing Millman, and this was one of the last mentions of the Purple Gang[27]. The Italian mob outlasted the Purple Gang and ultimately triumphed over them as the leaders of the Detroit Underworld by the late 20th century.

The Crosstown Mafia War (1930-1931)

Milazzo had been recognized as one of the Detroit Mafia's top bosses since the early 1920s and relative stability had reigned within the local underworld throughout this time, but by 1930 continuing Mafia rivalries based in New York and Chicago concerning his Castellammarese allies grew to be a problem for Milazzo. At the heart of the volatile situation within New York City's Mafia lay Milazzo's fellow Castellammarese mafiosi who found themselves being opposed by powerful boss Giuseppe "Joe the Boss" Masseria. The ongoing feud had reached a boiling point and supporters on both sides in New York, as well as Chicago were preparing for war.

Gaspar Milazzo and his longtime ally, Buffalo Mafia boss Stefano Magaddino had secretly supported their allies in New York and Chicago, including Chicago Mafia bosses Giuseppe Aiello and Al Caponne, in opposition to Joe Masseria. However, by 1930, both men openly supported their allies, including Chicago Mafia boss Giuseppe Aiello, who was being opposed by a powerful Masseria ally in Chicago, Al Capone. Joe Masseria, the recognized "boss of bosses" was incensed by the disrespect Milazzo and Magaddino were showing him by supporting his enemies and soon Masseria decided Milazzo and Magaddino, both powerful and influential mafiosi, must be eliminated.

Masseria accomplished this in Detroit by supporting a Milazzo adversary, Chester William LaMare, boss and leader of the Westside mob and its racketeering in Detroit, more specifically the Hamtramck area. LaMare was born in Ripacandida, Italy on January 6, 1887 to two parents of Italian descent.[29] LaMare later established himself as a naturalized U.S. citizen and in 1917, proclaimed his occupation to be a self-employed fruit merchant in Detroit.[30] LaMare was believed to be a close associate of Milazzo, and in fact some Mafia historians claim Milazzo was LaMare's mentor during the 1920s. LaMare and his Westside gang were rivals with Milazzo and his Eastside allies, especially as LaMare’s ambition and lust for power grew. While the influential Sam Catalanotte was still alive, LaMare’s power thirst was kept in check as any disruption of peace would cause an all-out war. In the early 1920s, LaMare established a base of operations in Hamtramck. He opened a popular night club known as the Venice Cafe. With his business partners and the leaders of the Eastside Gang, Angelo Meli, William Vito "Black Bill" Tocco, and Joseph "Joe Uno" Zerilli, LaMare grew rich and powerful, shaking down brothels and gambling houses for protection and muscling into bootlegging rackets. Hamtramck became so corrupt that in the fall of 1923, Michigan Governor Alex Groesbeck ordered detachments of the Michigan State Police into Hamtramck to take control of the city government. This operation resulted in the arrest and eventual conviction of 31 men, including Hamtramck Mayor Peter C. Jezewski, for Prohibition law violations. [31] LaMare was sentenced to a year in federal prison, but the judge increased his original fines and gave him probation on LaMare's promise to "go straight".

The Eastsiders, who operated predominately on the upper Detroit River east of the city, had prospered in the liquor and beer rackets. The Licavoli brothers operated a lucrative rum-running operation on the Detroit River. Whiskey haulers were forced to pay the Licolvi brothers to haul their liquor for them. If they did not pay the protection money they were hijacked and put out of business permanently. The Eastside mob was also engaged in the gambling and drug rackets. LaMare and his Westside gang were rivals with Milazzo and his Eastside allies, especially as LaMare’s ambition and lust for power grew. While the influential Sam Catalanotte was still alive, LaMare’s power thirst was kept in check as any disruption of peace would cause an all-out war.

In early February of 1930, Sam Catalonotte died from pneumonia. The situation was exactly what LaMare had been waiting for. LaMare had previously been the principal lieutenant of Sam Giannola and believed he should have been elevated to Catalonotte’s position of supreme boss by the end of the Giannola-Vitale War.

With the support of Joe Masseria in New York, LaMare began to make plans to eliminate the leaders of the Eastside gang which included Angelo Meli, William Tocco and Joseph Zerilli. LaMare scheduled a meeting between the two divisions of Detroit at a Vernor Highway fish market, where he planned for three gunman to assassinate Eastside mob bosses.

Eastside gang leader Angelo Meli was uneasy about the meeting and felt LaMare could be setting him and his associates up. Meli contacted Gaspar Milazzo who was recognized as the new boss and a trusted mediator within the Italian underworld and asked him to represent the Eastside gang and mediate the dispute believing that LaMare would never attempt to murder such as highly respected and feared Detroit Mafia leader knowing it would instantly start a war. On May 31, 1930, Milazzo and his driver and right-hand-man, Rosario "Sam" Parrino arrived at the Vernor Highway Fish Market.

While they waited in a private area for LaMare and his associates, three gunmen leaped out from a back room and shot both men to death. Milazzo was hit in the head and died instantly, while Parrino was shot in the chest, abdomen and arm and soon died. The three assassins, Joe Amico, Joe Locano, and an underworld character known as “Benny the Ape,” were later identified by witnesses. However, the three gunmen were tried and acquitted of the murders when witnesses could not identify them in the courtroom. The lack of memory was a common ailment among witnesses to related murders in the Prohibition era in Detroit.[32]

The Fish Market Murders developed into the major gang conflict between the Eastside and Westside Mobs, which would later be known as the Crosstown Mafia War. Meli immediately swore to avenge the deaths of his two representatives. Between May 31 and July 23 of 1930, at least 14 men were murdered by gangland guns.

The killings stopped abruptly with the murder of WNBC radio commentator Gerald Buckley on July 23rd, who was shot in the lobby of the LaSalle Hotel on the same night that the vote to recall Detroit Mayor Charles Bowles took place. Since it is known that Buckley was suspected of having underworld connections, many believe that he was killed by mobsters for his participation in the Bowles recall campaign.

In response to the killing, The Detroit police enacted severe measures to restrict undesirable and illegal crime, as they tried to find persons of interest after Buckley’s murder. The Detroit Police put a grand jury into place immediately to investigate the crimes that were happening. Most mob leaders went into hiding, while gangs maintained a much lower profile as the war continued. The police and the Eastside Mob were looking everywhere for Meli. Police speculated that Meli told Joe Amico and the other assassins from the fish market that they needed to put their boss, LaMare, “on the spot,” soon or they would end up dead. On February 6, 1931, LaMare arrived at his home with his bodyguard, Joe Girardi. LaMare asked his wife to drive Girardi home. Two men entered the house, who was later identified by fingerprints as Joe Amico and Elmer Macklinand, shot LaMare twice in the side of his head. Chester was found dead in the kitchen several hours later by his wife.

LaMare’s death successfully ended the Crosstown Mafia War in 1931. Amico and Macklin were later tried and acquitted for the murder of LaMare. Leaders of the Eastside Mob became the originators of what was to become Detroit’s modern-day Mafia organization.

The establishment of the Detroit Partnership

One of the main outcomes of the Crosstown Mafia War was the establishment of The Detroit partnership. This is also colloquially referred to as the Detroit crime family, Detroit Combination and the Detroit Mafia. The Detroit Partnership is an Italian-American organized crime family based out of Detroit, Michigan. They hold interests in the Midwest such as Michigan and Ohio, Canada, and other cities in West Virginia, Nevada and Sicily as well. After Lamare’s death and many other Mafia leaders such as Joe Tocco, other remaining Detroit Mafia leaders continued to unite under one group and leadership and band together. Lamare was a hindrance that disrupted previous peace within the Detroit Mafia, and then the Detroit Partnership started to take off.

The Vernor Highway Fish Market meeting in Detroit had a huge impact, as this had really turned into a war between the Westside and Eastside mafias. During this time in Detroit, many people were getting killed in the daytime and in crowded streets, as the Vernor Fish Market Murders catalyzed a large string of murders within the city. Between May 30 and July 23, 1930, at least fourteen men died. And then after Gaspar Milazzo’s death, there was a war that began within the Detroit Mafia, the Castellammarese War in New York. Chester LaMare’s reign was troubled by the fact that he was a watched man, not only by his fellow mafiosi, but also by local law enforcement who often raided his business establishments such as his speakeasies, and interfered with his other rackets. LaMare went into hiding, and more than a dozen Mafia members were killed in Detroit during the Eastside gang/Westside gang war that lasted about a year. In February, 1931, LaMare was betrayed by two of his own men, but the reasoning behind this was due to Angelo Meli confronting the two and saying that if they didn’t kill Lamare, then he would kill them instead. Thus, it was betrayal out of desperation. So the two men then shot Lamare in the back as he met with them in his home. This played a role in ending the Crosstown Mafia War, which impacted the Detroit Partnership, and influenced why some of the Detroit Mafia leaders decided to band together.

Outcomes of Crosstown Mafia War

One of the main outcomes of the Crosstown Mafia War[33] was the establishment of The Detroit partnership[34]. This is also colloquially referred to as the Detroit crime family, Detroit Combination and the Detroit Mafia. The Detroit Partnership is an Italian-American organized crime family based out of Detroit, Michigan[35]. They hold interests in the Midwest such as Michigan and Ohio, Canada, and other cities in West Virginia, Nevada and Sicily as well. After Lamare’s death and many other Mafia leaders such as Joe Tocco, other remaining Detroit Mafia leaders continued to unite under one group and leadership and band together. Lamare was a hindrance that disrupted previous peace within the Detroit Mafia, and then the Detroit Partnership started to take off.

The Vernor Highway Fish Market meeting in Detroit had a huge impact, as this had really turned into a war between the Westside and Eastside mafias. During this time in Detroit, many people were getting killed in the daytime and in crowded streets, as the Vernor Fish Market Murders catalyzed a large string of murders in Detroit. Between May 30 and July 23, 1930, at least fourteen men died. And then after Gaspar Milazzo’s death, there was a war that began within the Detroit Mafia, the Castellammarese War in New York. Chester LaMare’s reign was troubled by the fact that he was a watched man, not only by his fellow mafiosi, but also by local law enforcement who often raided his business establishments such as his speakeasies, and interfered with his other rackets. LaMare went into hiding, and more than a dozen Mafia members were killed in Detroit during the Eastside gang/Westside gang war that lasted about a year. In February, 1931, LaMare was betrayed by two of his own men, but the reasoning behind this was due to Angelo Meli confronting the two and saying that if they didn’t kill Lamare, then he would kill them instead. Thus, it was betrayal out of desperation. So the two men then shot Lamare in the back as he met with them in his home. This ended the Crosstown Mafia War, which played an impact in the Detroit Partnership and how some of the Detroit Mafia leaders decided to band together.

Castellammarese War

After the death of Gaspar Milazzo a war ignited within the Detroit Mafia and at the same time, the Castellammarese War in New York was officially beginning. During this time in Detroit, Chester LaMare, with the support of powerful New York boss Joe Masseria, was recognized as the new Detroit Mafia boss. His reign was plagued by the fact that he was a marked man, not only by his fellow mafiosi, but by local law enforcement who continuously raided his business establishments, such as his speakeasies, and interfered with his other rackets. At this point in time, LaMare was already a notoriously prolific bootlegger and proprietor of illicit gambling houses. Lamare was earning upwards of $250,000 yearly from his illicit enterprise[36].  Adjusted for inflation to today’s value, Lamare was earning over $4,000,000 per year[37]. LaMare’s success created many enemies who were in the same line of business.  Joe Zerelli, otherwise known as “The Crime Czar of Hamtramck” was one such rival[38].  Zerelli also controlled speakeasies and wanted LaMare out of the way so that he could capture more of the profits from the industry.  LaMare made plans to murder Zerelli, however, they were ultimately unsuccessful and Zerelli would outlive him[36].

LaMare went into hiding while more than a dozen Mafia members were killed in Detroit during the Eastside gang/Westside gang war that lasted roughly a year. In February 1931, LaMare was having a meal with his bodyguards, Joe Amico and Elmer Macklin, when he was murdered. [39] While Amico spoke to LaMare, Macklin rose to wash some dishes and subsequently shot his boss in the back. [39] Both Amico and Macklin had a murky history with their previous operations, being described as "not too well trusted even by the gangland [they] served." [40] LaMare's wife was not present at the time of the murder, as she was driving one of her husband's associates back to his home in Detroit. [41] Some theorized that Mrs. LaMare was informed of or even involved in her husband's murder, given the unique circumstances of her absence that night. [40] Eventually, these rumors dissipated. Betrayed by his own men in his home, LaMare and his authority were swiftly put to an end. The death of LaMare in early 1931 and other Mafia leaders later on, such as Joe Tocco, led to the remaining Detroit Mafia leaders uniting under one group and leadership: that of the reigning Eastside gang leaders, Angelo Meli, "Black" Bill Tocco and Joe Uno Zerilli.

Alongside Meli, Tocco and Zerilli would be their allies John Priziola and Peter Licavoli who become part of the Detroit Partnership's "Ruling Council", the crime family's top leadership committee. This was basically the formation of the Detroit crime family or Detroit Partnership as it became known within the American underworld. At the same time, Detroit's Mafia factions were in opposition of each other once more throughout 1931, the Castellammarese War raged on within New York's Italian underworld pitting the city's two most powerful, old-world Sicilian bosses and their supporters against each other.

The assassination of the New York Mafia "boss of bosses", Joe Masseria on April 15, 1931 effectively ended the large-scale Mafia war based in New York. The next round of events in New York's Italian underworld would influence not only Detroit's underworld future but basically that of the American underworld. Soon after the death of Joe Masseria his main rival and successor, Salvatore Maranzano was murdered on September 10, 1931, by a rising faction of young Mafia leaders within the New York Mafia. These young, modern Mafia leaders had helped Maranzano eliminate Masseria, but all the while they were biding their time and planning their eventual take over of the New York underworld and consolidation of the Italian underworld nationwide.

The death of New York's two old-world-style Mafia leaders, Masseria and Maranzano signaled and solidified the rise of a young, modern Mafia leader, Charles "Lucky" Luciano, and his supporters known as the "young turks". Under the leadership of Luciano and the allied leaders within New York's Five Families came the establishment of The Commission, the ruling committee of the American Mafia. Under the New York Mafia's new regime, which included bosses Charlie Lucky Luciano, Joseph "Joe Bananas" Bonanno, Vince Mangano, Thomas Gagliano, and Joseph Profaci, the Detroit Partnership was officially recognized within the Italian-American underworld's new organizational structure. The powerful midwest crime family became one of the 24 original Mafia crime families that comprised La Cosa Nostra in America and began its dominance within the Michigan underworld.

The American Lebanese Club

This section is on the American Lebanese Club, which was a mafia-run gambling establishment fronted as a "social fellowship" organization. The American Lebanese Club eventually became the Lower East Side of Detroit Club, abbreviated to Lesod Club. Members of the Lesod Club played Barbut, a dice game of Middle Eastern origin. The Lesod Club, operated by Anthony and Vito Giacolone, moved locations a number of times throughout its existence due to police-generated pressure. Police had regular surveillance on the Lesod club and raided it many times, attempting to uncover the illegal gambling that was carefully hidden under the facade of a social club, until its closure in 1962.[42]

The American-Lebanese Club was first raided by police in 1942 for gambling suspicions. From 1942 until early 1959, it was raided 18 times and 275 people were arrested, yet none of them had been charged. Police were unable to bring about a court case due to insufficient evidence—that is until Asab Jordan went to the police after amassing a $5,000 debt gambling at the club.

After this event, the police set up a 24-hour surveillance sting operation in October 1959 to track which members were visiting the club. They installed lights in the area and took pictures of various members to arrest in the future. There were reports that members were so fed up with the surveillance that they started taking pictures of the police officers that were watching the club.

On December 29, 1959, the police made their largest raid on the club, arresting 28 members, later bringing 11 members to trial. The police suspected that Vito Giacolone, an underboss of the Partnership, and Michael Thomas ran the gambling operations of the club, which could bring in $10,000 in a typical weekend. Asab Jordan was the star witness in the case, but police almost lost his testimony when he failed at attempting suicide, which he says was unrelated to the case, but more so related to pressures to pay his debts.

Over the following months, others were arrested in relation to the gambling charges, with individuals being identified by the pictures the police took over several months. The people arrested after the raid were never charged, while the 11 people awaiting trial pleaded guilty and were facing two years in prison. Ultimately, the 11 members were assessed fines ranging from $100-$300, with Vito Giacolone receiving the highest fine of $300.

After the constant surveillance and resulting court cases, the American-Lebanese Club stopped operating and became the Lower East Side of Detroit (LESOD) Club.[citation needed]

The Lower East Side of Detroit (LESOD) Club

When the American-Lebanese Club was shut down in 1959, the Lesod Club, originally Lower East Side of Detroit Club, took its place at 106 W Columbia St. and later moved to River Rouge.[43] The Lesod club was much like the American-Lebanese Club. Registered as a men's social club, the Lesod club ran an illegal barbudi game that could rake in $30,000 in one night.[44] The club was run by two mafiosi, Vito and Anthony Giacalone.[45] Adding onto the security measures put in place when it was the American-Lebanese Club, the Giacalone brothers developed extremely cautious systems to protect the club against police.[44]

The game was played upstairs behind a locked door with a peephole. The outside was guarded who screened people before they were allowed to enter through the locked door downstairs. There was a while where Billy Giacalone and his henchmen, Otis Tincer, who were both involved in security, let police upstairs to look around. Unfortunately for the police, all they would find after hearing people rushing around upstairs, was men playing checkers.[44]

Eventually, the police filed a petition for abatement of a nuisance and they subpoenaed everyone who entered the club in the nights that followed. All of the witnesses pleaded the fifth amendment, however, the police already had enough evidence for a search warrant. Before the search warrant could be exercised, the Lesod Club closed and did not try to reopen in the city of Detroit.[44] Despite not reopening in the city, Vito attempted several times to move the gambling operation to the suburbs.[46]

Gambling and the American Lebanese Club

This section will discuss the American Lebanese Club's relationship to the gambling game "barbut." Gambling has deep roots in the American Lebanese Club as well as Lebanese culture. Even today, the manager of the recently opened Casbah Club at a West Beirut Hotel, Antoine Franjeih, said that "Lebanon has gambling in its blood." [47] In fact, the gambling from the popular dice game "barbut" is largely why police placed surveillance on the American Lebanese Club in the late 1950s.[48]

Barbut is a dice game that originated in the Middle East and has become a relaxing and social pastime played worldwide. Players are attracted to barbut because of the winning odds which are "even" for every player at any given time of the play. [49] The essence of how the game is played starts with players throwing dice to determine who will become the "shooter" and the "fader." The player with the highest role will serve as the shooter and the player to his right will be the fader. The fader will put up a stake and the shooter will choose whether to cover some or all of the fader's bet. The shooter or fader may also decide not to bet. Then, the dice will be passed around the table counterclockwise to the next players. [50]

As gambling was illegal in the US in the 1950s, the police closely investigated the American Lebanese Club because of its suspected involvement in gambling. On December 30, 1959, police officials maintained that even though the club had a facade of other activities like handing out pumpkins to neighborhood children, that the American Lebanese Club was still a front for gambling. [51] In fact, after a three-year cold war between the police and the American Lebanese Club, the police seized 28 men after dice cups with $2,604 in cash and $1,235 in checks were found in suspected gambling money. [52] Ultimately, while the American-Lebanese Club was registered as a "social-fellowship organization," the club was really centered around gambling as it was a convenient setting for the Giacalone brothers, like Anthony Giacalone, who often brought in as much as $30,000 a night from barbut. [53]

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