Capone went to work for Yale's old mentor, John Torrio. Torrio saw Capone's potential, his combination of physical strength and intelligence, and encouraged his protégé. Soon Capone was helping Torrio manage his bootlegging business. By mid-1922 Capone ranked as Torrio's number two man and eventually became a full partner in the saloons, gambling houses, and brothels.
When Torrio was shot by rival gang members and consequently decided to leave Chicago, Capone inherited the "outfit" and became boss. The outfit's men liked, trusted, and obeyed Capone, calling him "The Big Fellow." He quickly proved that he was even better at organization than Torrio, syndicating and expanding the city's vice industry between 1925 and 1930. Capone controlled speakeasies, bookie joints, gambling houses, brothels, horse and race tracks, nightclubs, distilleries and breweries at a reported income of $100,000,000 a year. He even acquired a sizable interest in the largest cleaning and dyeing plant chain in Chicago. Although he had been doing business with Capone, the corrupt Chicago mayor William "Big Bill" Hale Thompson, Jr. decided that Capone was bad for his political image. Thompson hired a new police chief to run Capone out of Chicago. When Capone looked for a new place to live, he quickly discovered that he was unpopular in much of the country. He finally bought an estate at 93 Palm Island, Florida in 1928.
Attempts on Capone's life were never successful. He had an extensive spy network in Chicago, from newspaper boys to policemen, so that any plots were quickly discovered. Capone, on the other hand, was skillful at isolating and killing his enemies when they became too powerful. A typical Capone murder consisted of men renting an apartment across the street from the victim's residence and gunning him down when he stepped outside. The operations were quick and complete and Capone always had an alibi.
Capone's most notorious killing was the St. Valentine's Day Massacre. On February 14, 1929, four Capone men entered a garage at 2122 N. Clark Street. The building was the main liquor headquarters of bootlegger George "Bugs" Moran's North Side gang. Because two of Capone's men were dressed as police, the seven men in the garage thought it was a police raid. As a result, they dropped their guns and put their hands against the wall. Using two shotguns and two machine guns, the Capone men fired more than 150 bullets into the victims. Six of the seven killed were members of Moran's gang; the seventh was an unlucky friend. Moran, probably the real target, was across the street when Capone's men arrived and stayed away when he saw the police uniforms. As usual, Capone had an alibi; he was in Florida during the massacre.
Although Capone ordered dozens of deaths and even killed with his own hands, he often treated people fairly and generously. He was equally known for his violent temper and for his strong sense of loyalty and honor. He was the first to open soup kitchens after the 1929 stock market crash and he ordered merchants to give clothes and food to the needy at his expense.
Capone had headquarters in Chicago proper in the Four Deuces at 2222 S. Wabash, the Metropole Hotel at 2300 S. Michigan Avenue, and the Lexington Hotel at 2135 S. Michigan Avenue. He expanded into the suburbs, sometimes using terror as in Forest View, which became known as "Caponeville." Sometimes he simply bribed public officials and the police as in Cicero. He established suburban headquarters in Cicero's Anton Hotel at 4835 W. 22nd Street and in the Hawthorne Hotel at 4823 22nd Street. He pretended to be an antique dealer and a doctor to front his headquarters.
Because of gangland's traditional refusal to prosecute, Capone was never tried for most of his crimes. He was arrested in 1926 for killing three people, but spent only one night in jail because there was insufficient evidence to connect him with the murders. When Capone finally served his first prison time in May of 1929, it was simply for carrying a gun. In 1930, at the peak of his power, Capone headed Chicago's new list of the twenty-eight worst criminals and became the city's "Public Enemy Number One." The popular belief in the 1920s and 30s was that illegal gambling earnings were not taxable income. However, the 1927 Sullivan ruling claimed that illegal profits were in fact taxable. The government wanted to indict Capone for income tax evasion, Capone never filed an income tax return, owned nothing in his own name, and never made a declaration of assets or income. He did all his business through front men so that he was anonymous when it came to income. Frank Wilson from the IRS's Special Intelligence Unit was assigned to focus on Capone. Wilson accidentally found a cash receipts ledger that not only showed the operation's net profits for a gambling house, but also contained Capone's name; it was a record of Capone's income. Later Capone's own tax lawyer Lawrence P. Mattingly admitted in a letter to the government that Capone had an income. Wilson's ledger, Mattingly's letter, and the coercion of witnesses were the main evidence used to convict Capone.
n 1931, Capone was indicted for income tax evasion for the years 1925-29. He was also charged with the misdemeanor of failing to file tax returns for the years 1928 and 1929. The government charged that Capone owed $215,080.48 in taxes from his gambling profits. A third indictment was added, charging Capone with conspiracy to violate Prohibition laws from 1922-31. Capone pleaded guilty to all three charges in the belief that he would be able to plea bargain. However, the judge who presided over the case, Judge James H. Wilkerson, would not make any deals. Capone changed his pleas to not guilty. Unable to bargain, he tried to bribe the jury but Wilkerson changed the jury panel at the last minute.
The jury found Capone not guilty on eighteen of the twenty-three counts. Judge Wilkerson sentenced him to a total of ten years in federal prison and one year in the county jail. In addition, Capone had to serve an earlier six-month contempt of court sentence for failing to appear in court. The fines were a cumulative $50,000 and Capone had to pay the prosecution costs of $7,692.29. n May 1932, Capone was sent to Atlanta, the toughest of the federal prisons, to begin his eleven-year sentence. Even in prison Capone took control, obtaining special privileges from the authorities such as furnishing his cell with a mirror, typewriter, rugs, and a set of the Encyclopedia Britannica. Because word spread that Capone had taken over in Atlanta, he was sent to Alcatraz. There were no other outfit members in Alcatraz, and security was so tight that he had no knowledge of the outside world. He was unable to control anyone or anything and could not buy influence or friends. In an attempt to earn time off for good behavior, Capone became the ideal prisoner and refused to participate in prisoner rebellions or strikes. While at Alcatraz, he exhibited signs of syphilitic dementia. Capone spent the rest of his felony sentence in the hospital. On January 6, 1939, his prison term expired and he was transferred to Terminal Island, a Federal Correctional Institution in California, to serve his one-year misdemeanor sentence. He was finally released on November 16, 1939, but still had to pay fines and court costs of $37,617.51. After his release, Capone spent a short time in the hospital. He returned to his home in Palm Island where the rest of his life was relaxed and quiet. His mind and body continued to deteriorate so that he could no longer run the outfit. On January 21, 1947, he had an apoplectic stoke that was probably unrelated to his syphilis. He regained consciousness and began to improve until pneumonia set in on January 24. He died the next day from cardiac arrest. Capone was first buried in Mount Olivet Cemetery in Chicago's far South Side between the graves of his father, Gabriele, and brother, Frank, but in March of 1950 the remains of all three were moved to Mount Carmel Cemetery on the far West Side.
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