The Gangster Era
The Gangster Era
1920s-1930s

Dutch Schultz

The Beer Baron of New York

BABY FACE NELSONBONNIE AND CLYDEBUGSY SIEGELCREEPY KARPISPRETTY BOY FLOYDDUTCH SCHULTZJOHN DILLINGER
eatlife.net eatlife.net@gmail.com


Updated October 2024
Posted October 2023

FBI Dutch Schultz
Dutch Schultz
The Beer Baron of New York

Schultz, born Arthur Simon Flegenheimer, was a bootlegger and racketeer who tussled with the Mafia's Five Families, including Lucky Luciano and Irish mobsters. "The Beer Baron of New York" killed multiple people who stood in his way. He was arrested on tax evasion charges, partly due to FBI taps on his phones, though he was acquitted. He asked the Five Families for permission to kill US attorney Thomas Dewey. When they refused, he threatened to kill Dewey himself, and the Mafia, fearing law enforcement retribution over the killing of a prosecutor, arranged a hit on Shultz themselves. Shultz was shot on October 23, 1935, in the Palace Chop House restaurant bathroom and died two days later.

Dutch Schultz Armored Car
Dutch Schultz Armored Car
1931 Lincoln
Dutch Schultz Armored Car

Dutch Schultz Armored Car

Dutch Schultz Armored Car

Dutch Schultz Armored Car

Dutch Schultz Armored Car

Dutch Schultz Armored Car

Dutch Schultz

WIKIPEDIA Dutch Schultz
Born Arthur Simon Flegenheimer (August 6, 1901 – October 24, 1935) was an American mobster based in New York City in the 1920s and 1930s. Schultz made his fortune in organized crime-related activities, including bootlegging and the numbers racket. Schultz's rackets were weakened by two tax evasion trials led by prosecutor Thomas Dewey, and also threatened by fellow mobster Lucky Luciano. Schultz asked the Commission for permission to kill Dewey, in an attempt to avert his conviction, which they refused. When Schultz disobeyed them and made an attempt to kill Dewey, the Commission ordered his murder in 1935. Schultz was shot at a restaurant in Newark and died the next day.

Bootlegger
In the mid-1920s, Schultz had begun work as a bouncer at the Hub Social Club, a small speakeasy in the Bronx owned by a gangster named Joey Noe. Noe was impressed with Schultz's ruthlessness and reputation for brutality when he lost his temper, and he made him a partner. Together they soon opened more illegal drinking joints around the Bronx. Using their own trucks to reduce high delivery costs, they brought in beer made by Frankie Dunn, a brewer in Union City, New Jersey. Schultz often rode shotgun to guard the trucks from hijackers.

Schultz and Noe soon had to deal with the brothers John and Joe Rock, who were already running a bootlegging operation in the Bronx. Initially the brothers refused to buy beer from Noe and Schultz, but eventually John, the elder brother, agreed to cooperate; however, his younger brother Joe refused. One night the Noe-Schultz gang kidnapped Joe, beat him and hung him by his thumbs from a meat hook. They then allegedly wrapped a gauze bandage smeared with discharge from a gonorrhea infection over his eyes. His family reportedly paid $35,000 for his release. Shortly after his return, he went blind. From then on, the Noe-Schultz gang met little opposition as they expanded across the entire Bronx. Bootlegging during Prohibition made Schultz very wealthy.

Gang wars
The Noe-Schultz operation, which had begun to flourish in the Bronx, soon became the only gang able to rival the network of Italian crime syndicates that became the Mafia's Five Families. When the gang expanded from the Bronx over to Manhattan's Upper West Side and the neighborhoods of Washington Heights, Yorkville and Harlem, they moved their headquarters to East 149th Street in The Bronx. However, this brazen move led to a bootleg war with New York's Irish Mob, led by Jack "Legs" Diamond.

In the early hours of October 16, 1928, Noe was shot several times outside the Chateau Madrid, a speakeasy at 231 West 54th. Although seriously wounded, he managed to return fire. A blue Cadillac was seen hitting some parked cars and losing one of its doors before speeding away. When police found the car an hour later, they discovered the body of a Louis Weinberg (no relation to Schultz gang members Abraham "Bo" Weinberg and George Weinberg) in the back seat. Noe's wounds became infected and he died on November 21. Schultz was left angry and distraught by the loss of his friend and mentor.

Retaliation started a few weeks later when Arnold Rothstein, a kingpin in the Jewish mob, was found fatally shot near the service entrance to the Park Central Hotel on November 6, 1928. Although George "Hump" McManus supposedly killed Rothstein over a bad gambling debt, Schultz is believed to have ordered the killing in retribution for Noe's death. This theory is supported by the fact that the first person McManus rang after the killing was Schultz's attorney, Dixie Davis. Schultz's trusted lieutenant, Bo Weinberg, then picked up McManus and drove him away from the murder scene. McManus was later cleared of the killing.

On October 12, 1930, Legs Diamond was shot and wounded at the Hotel Monticello on Manhattan's West Side. Two gunmen forced their way into Diamond's room and shot him five times before fleeing. Still in his pajamas, Diamond staggered into the hallway and collapsed. When asked later by the New York Police Commissioner how he managed to walk out of the room, Diamond said he drank two shots of whiskey first. Diamond was rushed to the Polyclinic Hospital in Manhattan, where he eventually recovered. On December 30, 1930, Diamond was discharged from Polyclinic. During his absence, his gang was forced to leave the city. When he returned home, Diamond began carving out a new territory for himself in Albany. He was killed in a cheap Albany rooming house at 67 Dove Street by two gunmen in December 1931.

Schultz also had to deal with internecine conflicts within his own gang. In 1930, one of Schultz's enforcers, Vincent Coll, demanded to be made an equal partner. This was because Schultz gang members received a flat salary instead of the customary percentage from the take-a unique arrangement compared to other major gangs in organized crime. When Schultz refused, Coll formed his own crew with the ultimate goal of murdering Schultz and taking over his territory. In the bloody gang war that followed, Coll lost his older brother Pete and earned the nickname "Mad Dog" from the press after a child was killed during a botched assassination attempt committed by his gang. In February 1932, Coll was lured into a trap. While he was taking a call in a drugstore phone booth, gunmen entered the store and machine-gunned him to death. The killers may have included Edward "Fats" McCarthy and the brothers Bo and George Weinberg.

RacketeerHarlem numbers racket
With the end of Prohibition, Dutch Schultz needed to find new sources of income. His answer came with Otto "Abbadabba" Berman and the Harlem numbers racket. The numbers racket, the forerunner of "Pick 3" lotteries, required players to choose three numbers, which were then derived from the last number before the decimal in the handle (total amount bet) taken daily at Belmont Park. Berman was a middle-aged accountant and math whiz who helped Schultz fix this racket. In a matter of seconds, Berman could mentally calculate the minimum amount of money Schultz needed to bet at the track to alter the odds at the last minute. This strategy ensured that Schultz always controlled which numbers won, guaranteeing a larger number of losers in Harlem and a multimillion-dollar-a-month tax-free income for Schultz. Berman was reportedly paid $10,000 a week.

Schultz began extorting New York restaurant owners and workers.
Schultz, working through a hulking gangster named Jules Modgilewsky, also known as Julie Martin, made deals with the leaders of Waiters Local 16 and Cafeteria Workers Local 302 to extort money by forcing restaurant owners to join the Metropolitan Restaurant & Cafeteria Owners Association, an employer association that Schultz had founded. Those who refused to join the Association were faced with exorbitant wage demands from the unions, followed by strikes and stink bomb attacks. The Metropolitan Association then stepped in to arrange a settlement of the strike with a sweetheart contract for low wages contingent on the employer joining the Association. Martin/Modgilewsky successfully extracted thousands of dollars of tributes and "dues" from the terrorized restaurant owners for Schultz.

During Schultz's tax evasion trial he began to suspect that Martin was skimming from the shakedown operation; Schultz had recently discovered a $70,000 disparity in the books. On the evening of March 2, 1935, Schultz invited Martin to a meeting at the Harmony Hotel in Cohoes, New York. At the meeting, at which chief enforcer Bo Weinberg and mob lawyer Dixie Davis were also present, Martin belligerently denied Schultz's charges and began arguing with him. Both men were drinking heavily as the argument continued, and Schultz sucker-punched Martin. Finally, Martin admitted that he had taken $20,000, which he believed he was "entitled to" anyway. Dixie Davis related what happened next:

Dixie DavisDutch Schultz was ugly; he had been drinking and suddenly he had his gun out. Schultz wore his pistol under his vest, tucked inside his pants, right against his belly. One jerk at his vest and he had it in his hand. All in the same quick motion he swung it up, stuck it in Jules Martin's mouth and pulled the trigger. It was as simple and undramatic as that-just one quick motion of the hand. Dutch Schultz did that murder just as casually as if he were picking his teeth.

As Martin contorted on the floor, Schultz apologized to Davis for killing someone in front of him. When Davis later read a newspaper story about Martin's murder, he was shocked to find out that the body was found on a snow bank with a dozen stab wounds to the chest. When Davis asked about this, Schultz replied, deadpan, "I cut his heart out."

Shooting and Death
Schultz was shot on October 23, 1935, while he was at the Palace Chop House restaurant at 12 East Park Street in Newark, New Jersey. While Schultz was in the bathroom, two Murder, Inc. hit men named Charles "The Bug" Workman and Emanuel "Mendy" Weiss entered the establishment.

Workman and Weiss entered the back room of the restaurant, where they fired numerous times at the Schultz gang members. Berman collapsed immediately after he was shot. Landau's carotid artery was severed by a bullet passing through his neck, and Rosenkrantz was hit repeatedly at point-blank range. Nevertheless, despite their injuries, both gangsters rose to their feet, returned fire, and drove the assassins out of the restaurant. Weiss jumped into the getaway car and ordered the driver to abandon Workman. Landau chased Workman out of the bar and emptied his pistol at him but missed. After Workman had fled on foot, Landau finally collapsed onto a nearby trash can.

Witnesses say Schultz staggered out of the bathroom, clutching his side, and sat at his table. He called for anyone who could hear him to get an ambulance. Rosenkrantz rose to his feet and demanded that the barman, who had hidden during the shootout, give him some change. Rosenkrantz called for an ambulance before he lost consciousness.

Schultz received the last rites from a Catholic priest at his request just before he went into surgery. He reportedly believed Jesus enabled him to beat an indictment and had promised to convert. He lingered for almost one day, speaking in various states of lucidity with his wife, mother, a priest, police, and hospital staff, before he died of peritonitis on October 24, 1935.

Other Wikipedia Citings