Al Capone Part 03

FBI Vault

Al Capone

Al Capone Part 03

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On the afternoon of the 30th instant, Agent Iay of
the New York office called by telephone to advise that Ir. Charles
Irrgang, who has financed Agents DiLillo and Palmera in the Juice
Grape business, had advised that he had received word frun Subject
Ianny0Sch.raiberg and two others who had mde certain induclnsnts
looking towards a partnership had-=e=tI:tIId that they were informed
that gc&#39;:&#39;ez-went agent: had entered into the grepe h-.:eine:e; that they
were not in any way fearful of the consequences; and Ir. Irrgang stated
that hewnd not finance another car for these Agents; that he would
not testify to the facts which he has already disclosed to our Agents;
that he would no longer cooperate with the Government, and that he as
through. Agent Fay stated that iir. in-gang slide these ltatqnents in
no belligerent attitude whatever, hut in an attitude clearly indicating,
in fact supported by the statement that he was fearful for his life and
would onder no circumstances have anything mre to do with this intesti-
gation. In T18! of this information, I promptly ccununicated with Er.
Oeeas, in in-.O&#39;Brian&#39;s Diviion, and it was agreed that Agents Palmsrs
and DiLillo would be prcnptly released from this work in Chicago, and
that further investigation would necessarily be
full facts with regard to the Irrgang statemnt
Fey eteted M
30th instant.&#39;:92u1I Q1-in Q IQ--s92~__§ In I-B4 -n-I92-srvu-us y.|.csU927 In LUPULU L-ll 85$ III-.l.I
Respectfully,
0/I - _ 4 Asuspended until the
were received. Agent
on the night of the
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Agent !&#39;ay at the Chicago Office called by telephone
yesterday morning to advise that Special Agents DiLillo and Pelnere,
assigned to the0.Tuice¢rape Investigation had succeeded in disposing oi
s carload of grapes on the Northwestern Railroad tracks at e loss of
Ql95.00; that no approaches have heennade to either of these Agents while
working on the railroad tracks, although subject Romno, one of the leading
racketeers, had sold grapes from e ear placed next to that of the agents,
and it was assumed that Romano had performed that work for the pirpole of
sizing up Palrnore and DiLillo, as it has not been his practice to sell
grapes but merely to circulate around the ears where they were being sold.
Dilillo observed the passing of funds, from one grape vendor _ &#39;
to Bomno tut did not overhear the conversation and does not know the
circumstances attendant upon that transfer of ihnds. Agent Di!-illo,
however, obtained the number of the car from which these grapes were sold
and can identify the vendor when it becomes necessary to do so at e
later date.
Agent lay also advised that abject llardrvchohreiberg had
&#39; oonmunimted with llr. Charles In-gang, who is financing the grape husineis
for the Agents, requesting a conference yesterday. In-gang, of course,
had agreed and will advise the Agents promptly upon the conclusion of
said conference, the subject thereof.
Agent Iay desired instructions as to whether an additional
car of grapes should be purchased and sold. I advised him to make no
further arrangements until I had an opportunity to confer with Hr. Oseas
of the Department. I conferred with Mr. Oseas, who stated he would like
to have the Agents purchase and sell another car of grapes, even though
the Agents were under the impression that possibly e leak had occurred
and the racketeers were advised of their plans, because he stated that if
they suspected anything, the withdrawal of the Agents after the sale of
only one cerload of grapes would confirm that suspicion and u her
nE O.~I1£;;;!   ,§&#39;,$:
c NOV 3 not 36.! 3COPIES PTISTROYED NOV -3 L930
120 JUL 27 M54 -V Nathan  7"-5 P

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hand, if the recketeere were only suspicious of theee Agents, their
presence with another cerload or grepea might alley that euepicion _
and they might he approeche on the seoon oeceiio. ii Tiii of thii
request of Mr. Osaee, I will instruct the Chiesgn Office to permik the
Agent: to proceed with the sale or another carload or grapes, unless
developments growing at of the ecnference between Irrgeng end Sehrwiberg
make the eeme impoasible. I expect to learn or the results of the
conference before the close or bueinsae today.
Respectfully,
94,1/1/la _ /L _
/!rv*r~;/&#39;-wo.-
Ye I Hughes.
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October 50th, 1930
AIR HAIL.
Director, R3: 1&#39;0!!&#39;!ClJRmlL1D; ILNRT
Bureau of Investigation USCHRLIBERG -IUICB
Department of Justice, ¢,GRA.PE INVESTIGATIONIaahington, D.C. ANTI ZIFIUST HATER. y!/X-I
Dear Sir:
Attached hereto you will pleaee find an ori-
ginal and two copiea of a memorandum sublnitted by Special
Agent a- ll. T. Little and Albert Miller of this office, da-
ted October 30th, 1930, relating to a conference had Iith
Ir. Charles I. Irrgang at the latter: office, on eaid.
date.
I
Very truly yours,
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October 50, 1950
IEBJORAHIIJM TO ACTING SPECIAL LGINT IN CHARGE
1&#39;. X. FAY
R0: ZIUNY ROLIANO; MANNY SGERAIBERG
JUICE  RAPE DTVESTIGATION
At 11:30 A. ll. on this date Agents conferred eith Mr,
Cbarlee I. Irrgang at hie office, 169 South tter Harket. Hr. Ir:-gang
etated that at 7:30 P. ll. on October 89, 1930 Subject Manny Schraiberg
called at Hr. Irrgang&#39;e apartment at the Medinah Athletic club and Iae ac-
companied by teo men ehom Schraiberg introduced ae Bnnjiryrne or Bryceand Mickeyjar orzaxeon. After Schraiberg had nnde certain that Mr. Irr-
gang&#39;a apartment a occupied only by llr. Ir:-gang and hie Iife, he etated
that the two men Ii th him were hie financial backers, and that it be under-
epone organization .utood that they eere "big ehote" in the "organization", meaning the L1
The man named Byrne or Byrnee undertook to act ae epokee-
nan and etated flatly to Br. Irrgang that their purpoee in coming to eee
him Iae to I01k out eome arrangement in regard to marketing of juice grapes
in the various terminals ac that the "organization" and the auction company
could both profit by euch arrangement. Byrnee etated, according to Ilr. Irr-
gang, that he 2;; in pessaaaion of records which the Capone organization hadobtained in a raid on the former headquarter: of Toegiello and hie gang on
North Michigan Avenue, which recorda ehoeed that up November 1, 1929 Joe
ggierrara had _Jaid in to the Liello organization a net profit of $43,500.00,
and tat the reeorde further indicated that for the entire juice grape ehip-
ping eeaeon of 1929 a total of between $100,000.00 and $110,000.00 had been
paid in aa profite by Ierrara to Aiello.
Byrnea etated that the organization, believing that Subject
Schraiberg eae entirely familiar with the Juice grape eituation, and baeed
upon hie representation that large profits eere to be obtained in tnie
"racket", had placed the eum of 00,0 D.0O in a loop
finance the Juice grape racket for the eeaeon of 1930
Schraiberg had been "" able to ahoe but a emall profitbank to be ueed to
but that to date
to the great diaappoin
ment of the Capone gang, and that it lea for thie reason in particular, that
ie, to effect eome plan ehereby larger profits could to guaranteed to the
Capone organization, that Byrnee, Schraiberg ard Sax had called upon Hr.
Irrgang. The laet named stated that Byrnee requeeted Irrgang to euggeet a
plan ehereby the organization and Irrgang could both reap a profit from the
eele of jtiee grapes in the chieego tercinale, and By:-me atated to Ir:-gang
that for a coneideration he eae prepared to guarantee that hie organization
eoald force every peddler engaged in the eale of juice grapee in the Chicago
COPIES DESTROYED
120 JUL 27 I4 42,;y/_;_3.-37t-
fitI

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terminals, including those peddlers engaged in business on the Rock Island;
the Santa 1"e and the Northwestern tracks, to purchase &#39; - grapes exclusively
from nu. Irrgang and the U. S. Iruit auction Company.
Ill. Irrgang stated he explained that the juice grape market
to date had been unprofi table for all concerned, and tint since the season
was nearing a close, and in vies of the mrthsr fact that the prospects for
good prices betseen non and the close of the season were very poor, he did
not consider that it vould be north the shile of all concerned to agree upon
any plan for the remainder of the present season. Ir. Ir;-gang explained
that he did not Iieh to enter into negotiations Iith the organization at this
time and used the last above argument as a means whereby to postpone any def-
inite errangements with the Capone organization.
%. Irrgang farther stated tmt he -int to ions pains to
point out to Byrnes and his two companions that the Goverment, vhile in-
terested in the Juice grape situation, was concerned chiefly with the past
activities of Joe Iarrara and the Aiello organization, and that his, Ir.
Irrgang&#39;s, trip to Iashington was made in connection with the Government
investigation which Ins been in progress for a long period of time and had
nothing to do whatever with the situation as it has existed during the
present juice grape market. Lt this point in the conversation Byrnss re-
marked that the organization has been aware for acne time that the Govern-
mnt see conducting an investigation and had reliable infornation, and that
for some time past the Government had opened seven or eight ears of Juice
grape on the tracks of the Northeastern Railroad. Byrnes stated further,
according to Mr. Irrgang, that the organisation was mu; able to deal, not
only with the city Government and the States Attorney&#39;s office, but with
the Federal Government as tell, am stated that even tthe Goverrmnt ran at
Ieshington mt earn a living.
Hr. Irrgang stated that the three parties above mentioned
freely discussed the murders of Tony Farrara and Joe Liello and rather
plainly indicated that both sere brought about through the C8P°!1° °16Il"
ization. Frequent mention vas made by Byrnes of machine guns and millions
of dollars in capital and strong arm methods vhich have in the past been
empleyed, not only on the juice grape tracks but in other rackets in Chicago
- J _ Q _ ____n1h_4..| _._ _.ls.z.._ en..--_ 1--e--at - In iwnnlisslflnn hf Q1U °§= J-I-lIUIl.|.l. 3 all l"4".V*&#39;5""&#39;. 5" 3by ii GpOIi6 Organization, wining .u
great strength and power of the Capone gang.
Hr. Irrgang stated that By-rnes seemed to be fully conver-
sent sith the juice grape industry, including the growing of the arena! in
California, the shipimnt of can-load snipmentl to Chicaeo. and other pain"
of distribution in the Bast, and cited the tact that 450 oarloade oi juice , ,/7

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grapes were being disposed of daily at present in the iiew York terminals, and
in this connection stated that arrangements were now being mda by the local
organization and a similar organization in Haw York whereby, eomnnneing with
the next 1931 Juice grape season, the "rachet" in New York would be controlled
also by the local Gapone orgamzationt
Ir. Irrgang stated further that during the conference tip
three parties stated that tiny were preparing to control the juice grape
situation in Chicago in its entirety, and that the organization would die-
tate to the railroads, including the og-jhwestern Railroad through Fresident;Sergent, and the Chairmn of the Board, Hr. liar-vingiwwitt, .Tr., with Ihll
Byrnes stated he had attended school, the terms up n which the railroads
would be pcmitted to switch care to the various teem tracks, and in this
connection Byrnea stated that just prior to the killing oi Joe Iarrara in
June of this year, it was understood that Iarrara had made arrangements withthe chi cagmlwaukee, Bt. Paul and Pacific Railroad whereby the North-
weetern trac would be closed to peddlera and the latter forced to do all
of their selling from the tracks oi the llilvnukee Railroad, and that it was
at tm request end dictet ion oi Ferrare that the nee cmeht juice grew
tracks were constructed by the Milwaukee Railroad in anticipation oi this
year&#39;s Juice grape business on those tracks.
Ir. Irrgeng stated Byrncs informed him that Tony,¢Butch,
formerly a member oi Liello gang, is new engaged in a juice grape racket
at Milwaukee, Iisconein, and Rockford, Illinoi e, and that Pony Butch is"gunning" for Markkdmson for the reason that Ldamson wwew him money and
will not pay.
Hr. Irrgang stated that no arrangements were made between
him and the three parties above named, and at the conclusion of the confer-
ence it was understood by those present and stated by Ir. Byrnes that the
organization would withdraw entirely from any further participation in the
juice grape market for the rcuinder oi the present aeaaon, but that gub-
jects Schraiberg and Romano would be permitted to conduct whatever business
they desired tor their own personal benefit during the balance oi this sea-
I011.
__ _ 1 . Q AI . _-n___ L1 ___p__n_.__ _.|A.w_ A.w__IJ-. Irrgang ltated tint utter ms conrerence with HI
three parties above named, he became convinced that it would be futile
to continue the present investigation, and that he was not willing to
furnish any more grapes to be used in an under cover investigation; tur-
ther that he was irankly concerned with his personal safety and alarmed
that should it become known to the Capone organization that he was assist-
ing the Government in this investigation, the penalty for such assistance
would be his lire. Mr. Irrgang stated he wished it definitely understood
by the Bureau and officials in Washington that he would not testify in
this case and was not lling that any [email protected]:ceht =de by him be
used as evidence in this case. V,
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Llr. In-gang stated he would be willing to connmnicate
verbally to any official of the Government the matters hereinabove et
forth, but that he would not make any written statement covering hie con-
ference with the parties above named.
It was the impression at these agents that In-gang as
badly frightened by the above named parties.
The money now on deposit in the Joint account oi he
writers as trustees, all of which was furnished by the auction company and
which includes the proceeds or the sale oi the carload of juice grepee, can
be returned to the auction company by check whenever desired, according to
Hr. Irrgang .
The foregoing will later be incorporated in an investigative
report.
Very truly yours ,
2. .,&q&
ll. T. LI&#39;1"ILE
Spec ial Agent _
ALBERT llII.J..ER
m&#39;1,;AB special Agent
CC-Director
60-166
A
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Chock from U. S. Fruit Auction 00.,
Chockntrm U. S. Fruit Auction 00.,
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&#39;~ rDough! 11 Conn, mnnnghg r-actor
I Ir92ut lndnotrlon, LM., Int! d tho:
Cnllltrnh. Vhanrdinr tion,§
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nlng tho Introduction of new nope
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ltltuneat that his org-onlntlono would =
Lilla: Ind "lulu o chnnou" with lto D00!-i§&#39;IIl&#39;l and rnckotooro.
. Ir. Conn II-I ruched at tho Union
Louuo club, than ho fliiltorod tom
tordu for n vlllt boforo his dopnrturo If
today lo: Ion Irnnciocq. ,
Delhi I0  hpone.
Lt lb uhb Ir. Dunn III Dodcludu 0»_ _ ,_ t
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not lcqullntod with tho lltunon him
olthorootounnnolrothorhoomfth tolophono mango: and tolo- Juno. &#39; &#39; -"
gnmo from 1.11 loctlons of tho noun-;
U7 I-nqulrlng into tho truth of pub-
Ilhod town: on tho nut coast that
IIIIII1-oru. mpposedly inspired by Co-
pono, ind trad amdnlo at Fruit
hadustrlu ond Irindrod concornn that
Iholr now grnpo by-product, which tor-
hontl tnto wine, would not ho por-
Imod tn C|llCiI&#39;0,lnG other l.o.r¢o
canton. ir, n-an ii  io:-menu»Aecordln: to L-H. sher, alum
unnnngnr oi Fruit Induot:-too, hi eon-
corn hm roach-ed no Vlrilnln bun
Clponc, u otatod In o lsnntuh tron
Iruno.O92l. ho UIPM-¢ll IN ll!
Capone&#39;s Chimzo hoodqulrtun Dd
throltonod to blow tho holds 08"
0! peroonl lnnrkottnx tho nnnomtrotoo
in Chicago. Now Yuri boodlumo B6
inluod nimu nitimotuanl in 1-Inoei
to tho out. it wu renortod. Hon was -"loyal." _ _ i*
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went of lull
time I11 mil»!
use of bone nude
menged wine.   .. ..,
Fem I4_me teem lldsgi &#39;-92..I.e.t
the ]l I eonoeatrlte kin tram
wine |re|>el_ "I&#39;ll belnl continue!
then, Ind uopiel of l.¢vertllIlI|02I hi
Ihlnh the lean: um hem! eup-
Drt of the IF!! Industry U-1| ut-
ed were reach-ed hen In prohibition 1&#39;-oclnle. Ireu ma dry! emu unnf
lo wonder whether Ilgpl. rlnee ted
not elreedy become e tact vhout the ~
he]; at my mudllcetion at the Vel-
etude.ctorrepee-lntI.he1lt.hnmend-taint. . - K
They pointed £0 I-he Ittll-an la
=!&#39;-Es}: 22:: is-&#39;=1m==t "&#39;""- Pal!
pledged to enforce the T-Ihlinltlen- 4; __ e.__4 -j ._ gi-
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lhnorandum of telephone sell tron Ir. Dunn, at Chicago.
Ir. Dunn said he Ill calling about the grape Juice ease.
He said that L. I.4icOca-meek a representative oi theNational Committee and Rayl§n_1aain, eane in to see Ml.
Ee told Ir. Dunn that Ir. Benjamin had told hi; to age -
to see Hr. Dunn at the Bureau ottioe and he could get all
of the information the Bureau has relative to the shake
Gillie
Ir. Dunn said he told Ir. IcComaok that all the tiles are
in Iashington at the present time and that the Attorney
General would have to release than. Ir. Hoover said that
Ir. Dunn did the right thing.
an-. llcComeck told an-. 1>u%at yesterday he nu: had a
personal interview with Al spans, who gave his personal
assurance that his "boo-d1ums"&#39; are not ooncerned in the
racket in any Iay. Er. Hoover said it would be a great
mistake to deal rith anyone who is in personal mntaot
aith Ll Capone.J _ &#39;4 J I:&#39; ;&#39;l&#39;1&#39;9292 
:2 &#39;~_&#39;.l Y E Ds. c D :_m¢92
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Mr. Hoover said he had told the representative oi the Grap
iuuiuai-1"] sh; It &#39;|FOi.i1 b8 I great I-llilkl Q @081 Iith 11
uapona or iifiiii oonnaoted iith him-
BIG
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NOVZBIBSUM.-_...--|. _-4, x. ._
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&#39; 5-;_  5- 5*%e rep:-eeentetive wished to learn ea: thing about the
Fruit Growers or California, eppeel for protection lgalplt "2,gwet ere . 5}-927&#39;*_5
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hicago Daily Tribune
December 4, 1930.
File 60-166.
C lND|Cl&#39;SIINE;GEl&#39;S
tom-:nsu.amws
hnAmldu,O. t~dnnduJ
-Nine eiciaie at th ttamia Vine-
yard eompany new awaiting um
under tederai indictment tor umpir-
ary to violate the prohibition ia_Ir by
eeiiinj grape wine, today began
maaeuvere let e navel lahnee.
Your d the ue Indicted, Ill -
then: Lee Annie; reaidentl. ed enamendee demand tor a bin at par-E
ticui-are train the United ltatc awar-
ney containing an aneeltbn that the&#39;_U
5&#39;
government iiae for pearl eeaenedi
technical lab-e.cttone d the prehhitlnnlaw. The dezendante legal ue:-el
nee eet up the detenee eentenuerr that
the |e rnment tteel! lea beennancin&ruit lnuetrlee, Ltd.  which
bee an ii.e attorney label Walker
Wlilebrandti, which olera .a beverage
eerviee identical with that they were
mmumtw. &#39;
nu government hrn beard leened
Fruit Induliriee. &#39; Ltd. 14.000300
through the grape qontrnl lrelrd, the
detendante ever. and inter that the
federal money new h elllll in Iii-
llll the market iron Ihich mlunia
Vlneyante oeenpany Iae_-to:-dbl; le-
tached.
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gttgm
l3-Declares Dry _Enfq§t:_||;t&#39;s_,
,0; K._d In&#39;dustry. 1
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IIETLILS: AI 0110160, ILLINOIS
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REFERENCE: Report of special Agent R. H. Butterlorth,
dated 11/24/31, at Chicago, Illinois.
.._ _ , .. .. ..,.,,.. -  .___ -._._;, _on-1n.s= m CHICAGO, n.1.mo1s.     A. &#39; . ~&#39;- &#39;. _   . . --. .&#39; r," "-&#39; .. . .. I . 5,. __.,§!l&#39;_;..__
_  _ ._-= cnariee I. &#39;11_-rgen&#39;g,l!enege§ et~-dheindependent l&#39;i&#39;92i1ilnlL&#39;.-5&#39;;-&#39;~-?
&#39; _"Produce&#39;Auction Company, Chicago, Illinois, Ill 1Il1i01&#39;.921"°¢ I115 #38105 $l1litlFr8 .__-Tfhns been no 1-ac-92_::t:&#39;.:r1:g £:_*.&#39;he_ sole or juice g:&#39;apoe92in Chicago, _I11ino_1e, nringI__l
. {g juiga grape leaeon Of 1951- Ir.  Oil!!! lihli iipmente Of $0189 grpl "
to Chicago, Illinois, have been epleted for this eeuon, luid that no pore Juieej _
érlaea will be eold "on track unti1_the Fell of 1B,38.g_=_     T,&#39;1 &#39;  ,+
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Q¢¬;?@?@&#39;- -&#39;92N Director, &#39; /1; "&#39;"-"&#39;. Bureau of Investigation /;f&#39; T?/pl Department of Iuetice,  L!. "  &#39;97
Washington, D. C.
O U
R6: MANNY BCERAIBKRG; TONY ROIMNO.
O JUICE CHUPE INVESTIGATION.
 ANTI-&#39;I!RUS&#39;1&#39; MATTER.
Dear Sir:
Investigation in the above captioned cane reflects
that the juice grape ehipmente to Ghicege, Illinois, have been
completed for the eeaaon of 1931 and that no morejuice grapes
will be sold "on track" until the fall of 1932.
Inatructione are requested ea to whether further in-
vestigation is desired in this matter, which is being carried as
inactive in this office under instructions from the Bureau.
Ye? truly I&#39;M 1  4/ 1 J /1,% 	
H. A. HcSIain,
RjN]3;HJ special Lgent in Charge.
00-166
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D1/lS!UH CINE
January 14 , 1932.
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GRAPE ARTITRUST GL3}
Bureau File ggz-gggjg.
In the Fall of 1930, an investigation Ins initiated by
the United States Bureau of Investigation oi allegations that certain
levies had been and Iere being assessed against purveyors of grapes
Ihich arrived in Chicago from California. The grapes in question
were of a variety which made them Valuable primarily because of
the juice that could be extracted from them. The investigation
related to charges that raclseteers in ficago, pend.-icuJ_a_rly, ears
making an assessment of $20 per car load for the grapes which ar-
rived in the Chicago Freight Yards, and an additional assessment
of three cents against each lug or crate of grapes sold from the
cars in the Freight Yards. The indications were that this practice
had led to a depression in the grape market, which Ias further
aggravated by the fact that a rival gang of racketeers was alleged
to be planning to assess an additional levy of $30 per car, thus
bringing the total amount of tribute levied by racketeers to the
total of $50 per car.
The fact that this complaint was made and that the
Department of Justice had become active in the investigation
became known, presumbly by some person connected with the con-
plainants. Considerable publicity attended the making of the
complaint and the indications that an investigation would be made,
which resulted in causing it to be practically impossible to ob-
tain evidence of the actual collection of levies. As a result
of the investigations which were made, hotever, it was agreed
by all that the effort made by this Bureau in that case for a
time at least caused a discontinuance of the practice.
COPIES DESTROY ED
23 nus :3 1954 °T °°BD"m-
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