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" Lieutenant William B; I ones and Sergeant "George
they had no information concerning me F. Barrett.,**nerelating th ' ' " 52 e l c-...,* .~»2; a
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best ofhis rec_olle.ction he believee___t he,t Frank Guinanwie en ea;-;_,o9n§;;_ej§..li
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J. -,.. . -4..He states he understood that Frank Twas in_t1fQ'ublo_ in _FJ. o;-_ida," I
nd we enten ed from the Fede al Gourt-.te.o the Atl ta V '1. Eh es e * r 4 __ an or save r _. J]itentiary, "the details -of which he_?-dideenot kncm; *
states/tha15;ahe does not rec who. ave hi::_L;-this..;;lj.n'fon1a:_' ente _.ej1ang,eniente trith . _'melce guefrd e<j;,__'f-i_[n_c1}1eiriei_s "J-H.,.._....:..... 1: "n...'.,_..a.J- ..-. ..-:1...-.-.'--..-..-. H -. A"__*...-3.-.......-..=| 1-..." n';-'.¢'.-C-.:- .-.4-.,A|-mil "5-an-»-if--. |UH.l'-1-ll-1.16 1' I DU-l1'Uh ll ll-92-l V92'-LIULI-.¬|-BU-ll-ll J-Ll IIUJ. L?WUU| -Hy B67.MU' D.92I-U_U92il-_ fr _,__',,<-5
unable to ascertain whether there was 'suoh' _e person residing atP
hire.
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;;. -. "Agent without revealing his identity: indteistienéd
Lillie Guei.nan,,_ 525 North Fulton Avenu§_,;I!;p_' g-'eg1a_e§_"m"e;;e_-1»eeeggw-:=;.1e;;.};%;.'.
0; '-this homise $he';etatee_"ehe_ is a -.dQEQ1IPi§8.T1;he -.lge[senient..eél;-=T;q<
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r. _ ._ ,i_ = 5 ,3 _: ._.___.-u, . f-;1¢;;-J.-_-,_; ;_ .,-_ .i_:;Frank n-lm=m rH-H --.92=|"r¥.l-.-_.- 1n-mu_r 2511-e".-aun-,¢.--;-- iilaytl--I-hlAA - ---n pm -nwg = I-"v-I
etated to "her lmowledge he had -never
heing- involved in feome minor trouble, e:i;t_o;g1obiil1§',§edfe1ej11{iie';-e'-in ;"_..;.j?TFlorida about two years ago. She de11"ié d"E1iet{hei"'t"e-¬Jn""F1*enlc nee e92'rerY ~- i
served any time in any institution. She admitted, however, that he
does not wo tead' and the he is at employed and is now
and that he has been living with a man named Carl Crawford at this
eddreee. She etatee the leet poeition held by her son Frank was aey" ~
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The~ the er? no 'r"e¢PrdE"" was
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t to borrow theBaltimore Police Department who a eed to allow Agen' ' i also the photo rs h of this original fingerprints oi g pperson, -in or<ier.that_ the photograph. ma}? b_$.,eIhibi_t,e,;1 i:i,__1§_§w ,f{9;'_1;, _, V_ that s sea;-ch may he made of the fingerprint recornis of ie Feder'al,. ~ Bureau of-Investigation to ascertaiu:§{hether_has-.s criminal ~_' 1_ :_ - ~c92 Ki? I ' I ._. _ _ .r_,._ - it _ I;__,. - . .'w::§ I ....1'" '_ I Q g _ ~l_-=' " e _.-- 1% . e :1 ' - . "92= !!.- - . .' " ' *3?" "~ 1»: "- -» " "~ -e r:~ - ii I Q9 -A» ,~ V -Q . ,*.,,.-a,_. .4_'@.¢92 fr ».
it "' - :Y_0RK orricshr N$?_YORK;_GITY -i = -_
- _ will ahibit photograph or _1:o my.-. a,_e.w.lJiic'kam,'E:cecutive Er1ito;;;,'_ReaQ.'Detect vs i _' - es, ..
Madison Avenue, to ascertain whether he_csai i<i_en'tif3{ -this-_
._-9. t_ 92.= 3. " .,_ ._ I picture eel. Barrett; ,If_uo__t', obtaife descri;:_ti_on_,:oiE w_
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t Room 114,03 Mn Cele? ----- --
37° Lexington 1-V6llllO 3* 55""4' ~-----
}J$;| I35 York I, Y, In Es ----------- --
Mr. Foxwurth ..... ..
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Hr. Joili ....... ....
August 3, 1955. "1" wk ---------- --
llh Lester ......... .-
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Mr. 'lracy...... .._..-.
Director, ma Gubmnum
-i Federal Bureau of Investigation, """""""""""" "
_ _ U. S. Department of Justice,
fig- ._t Pennsylvania Avenue at 9th Street, H. 17., f
Washington, n. 0. *
Dear Sir:
',.f-1-:5, Re ence is made to letter from Special Agent in C rge
J. M. Keith, shington Field Office, dated July 27, 1955, in t e
matter of article entitled TI-an 'X' H Ihioh appeared in he . -
'=-ii: Detective °otion Weekly magazine publi ed by the Frank A ey 'Q Company New York City in the issue i Hay ll, 1955.
Special Agent George J Starr of this office called at
the o fice of Frank 4. llunsey c e , 260 Broadway, new York City,
, the absence of William T rt, president, talked with Albert
J. ibney, an associate publishe of the Frank L. lluneey Company. Mr.1 -. -"'-55*Gi ney stated that before disclosing the identity of the writer of the
article he would want tc discuss the nutter with the lawyers for the
company. He stated, however, that the article Ias written by amen
formerly in the Government service and now residing in New Jersey. llr.
Gihnejr stated that he had he 1'1¬!'I'f16ge of the authenticity cf the
article and that the statement contained therein might be true or un-
true. He personally had no knowledge of the extentjo I.'ni_ch_t_he_y __ if _ Mcould be relied upon. RECO '*I 2 45:»Hr. Gibney subse uentl tei]J.e§§oned' e St d M . _ q v "r=a#""-V 'istated that he had been in communication with tlixe uthor of the e;rt:92.ele,*,*'~-_*-'
and the latter promised to be in Gibney's office on Thuredgyz q592_F1.;§y:g - _ _.-.5of this week, at which time 11. would talk with Agent Starr "whom he '
claimed to knee. n Thursday cf this week, in the aheenee of Agentu? ii? IStarr, a telephone call was received from Mr. Gfnhney-'s'"office;*1d1i-elf-~@LX§><Lvwas handled by Special Agent F. K. O'Donnell of this of_1:Lice,,_§d the Qcorms DES'lROYED SEP 6 1935 i ab» 35 $3} . _.§;.;=;-_ _ A 1- -.¥.-53»-~~--..__9 e uca_6 11964 P- 7? Y ~* iM¢ C, Q!
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person calling stated that he was llr. Gibney, that the person to be
interviewed was then in his office, and that he had informed Gibney
that he iii well acqnaieo. with agent dtarr and preferred to talk
personally with that agent. The person calling then stated that the
man in his office told him he lived out of town and would be in town
again on Monday when he would telephone this office before calling to
eee Agent Starr» .
Yesterday a man whom I believe you know of, namely, Major
Charles E Russell, called at this office and Ins interviewed by agent
Starr. - or Russell stated to Agent Starr that he was the author of -
the mgaeine article, that he eee the an ehe 'te.lked with Agent 0'9-one
nell from Mr. Gibney's office, and that his reason for being so cautious
was that he did not went to be "put on the spot by discussing the
matter indiscriminately with some agent whom he did not loner. Major
Russell stated that the statements contained in the article which was
published in Tletective Fiction Weekly are absolutely correct as to
facts, that whatever embellishments appear therein were merely added
to make a better story, but that the substance is absolutelycorrects
The meeting referred to occurred, however, in Brooklyn, H. Y., and not
in a mid-western neg, and the man to whom the $10,000.00 a "week offer
was made is Major ssell himself.
Major ussell stated that the headquarters of the Ll
Capone syndicate ha been shifted from Chicago to Brooklyn, and that -
the entire racket e3 - sate field, including vice, gambling, liquor
and various other l , is now controlled and directed by a nan named{ito and two men diqtto of Brooklyn. y have associated with
hem many notoriou teers, including ch hultz, and the three
X men named are the ads of the syndicat at t r headquarters they
have a group of young men, none of appear o be over twenty-four
years of age, who are professional ki ers whose _activi,tios are
limited to performing that functio or th s ieate. They have
numerous henchmen, including young auyers octors, and various other
men of the professional type, as e'e..l es th- usual gangster tywe They
receive a "out" from all the raoketeer operations from Chicago to the
east coast and from Boston to below Philadelphia. Some time, posibly
along in April, they had Russell come to their meeting place and there
in the presence of from twelve to fifteen men, including Vito, one of
the Tottos, hutch Schultz and others, made to him the proposition
which is set out in the magazine article. Major Russell stated that,__,, _ --,--_._:k; 31-; :--¢-i_1n,-LA_';"_-4' - .4... _
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they ere absolutely desperate, that they are fighting their battles
to the well, and {hat they feel something has to be done to curb the
activities of the Department oi Justice agents-
]-gent Starr states that he has known jor Russell for e
number of years and there has always been some doubt es to hin-
Russell claims to have been one oi the more important nen in charge
oi Military Intelligence operations in France and elsedmere in Europe
during the World Yhrs He has written sngazine articles end possibly
boob about his various almost unbelievable exploits. In may instances
it seems to be impossible to determine ehether he is dealing with fact
or fiction in his articles and tells. in addition to his writings he
has frequently talked over the air end at various gatherings, end on
such occasions he manages to create the impression that he eotmlly
directed the investigations whereof he speaks end that they are tru
happenings.
Ihen Colonel Peter Treub was stationed at Governors
Island, New York, he end Russell were very friendly end at that time
Russell gave a series oi lectures considered to be of e confidential
nituri on espionage and cm.:nter=espi%=. these lecture: =er= given
in ze army Building and were attended by reserve end regular Arlw
officers. agent Starr attended practically ell of the lectures end
he states tnet so i er as he could determine the instructions given
were valuable end apparently based on a good knowledge of the subject
or were the result ct considerable reading. These lectures were
illustrated by occasional stories oi episodes occurring over sees,
but as to the authenticity of these stories Agent Bterr has no
knowledge.
The officers oi tlmllitery Intelligence Division
stationed on Governors Island, es York, have on many occasions been
dO92Ib'|;l92l1 of llejor Russell's baol-ground and have seriously questioned
his right to insinuate that he occupied a position of responsibility
in the llilitery Intelligence over sees during the Iorld Iar. The
Intelligence office here and in the hr Department at Iasbington
should have considerable information as to llajor Russell}
!Le.jor Russell ststed to ilgent that he llnows you
quite well, having become acquainted with you-. when Billy Burns, as
he celled him, was the Director of the Bureau.
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Lgent Starr states that he is unable to form a denite
opinion as to whether or not Russell has anything tangible to offer.
In spite of his enqahatic restatement of 1d:at appears in the magasine -
article and his olm oi close contact with these underworld .
characters developed as a result of favorawhioh he has been ablt
to do ior them irm time to time, it appears he, aooo:-rig to
his own statement, attempted toeucpose than on the radio. It is some-
what difficult to reconcile these two attitudes. In addition to his
verbal corroboration of the magazine article, he stated further to s
Agent Starr that the inside story oi illapone, which was published
in the newspapers some time ago, was written by him at Capone's request
and with material furnished by Capone; that the purpose of writing the
series of articles was to clear up to the atisfaction of the under-
world the stories which were floating around regarding tin so-called
mark of the rat" - the scar which appears on Capone's cheek. Russell
stated that a mn was sent here from Chicago to deliver to him an
envelope which presumably contained money to reimburse him for having
written these articles but that he declined to accept this envelope,
stating that he had already b n paid by the newspaper syndicate nhioh
published he articles. Rus e 1 further stated that the inside storyof Frankielllale, aliawv eiYale, also ms written by him withmaterial furnished thr g underworld sources.
hussell as erv hatic in hi statement that the"=E§1§rwor1e desires mt , if not possibly already sucoesszl in
so doing, men'i_n_t deral Bureau of Investigation or, as he terms
it, the Depertrhent o Justice, and he stated that he was told by these
underworld characters that they have available men who can meet all
the requirements for appointment to a position in the Department.
The above are statements made as statements of fact by
Russell. As against this, however, Agent Starr notes that there are
times when there seems to be a lack of sincerity in Russell's state-
ments. Occasionally he lightly changes the information which he
furnishes. '
Russell indicated that he is anxious to cooperate with
the Bureau, that he would expect to make no money out of it, and that
he sees a serious menace in the situation. He further indicated that
if the Bureau will pay his expenses he will be perfectly Willing to
proceed to Washington to discuss this matter with you personally;
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otherwise, he will be glad to discuss it further with Agent92_ Starr.
The matter was left open to future contact inasmuch as Agent Starr
informed. Russell that this infonnation would be transmitted direct
to you and that thereaiter Agent Starr would communicate with him.
A copy of this letter is being forwarded to the Wash-
ington Field offic for Special Lgent in Charge J. M. Keith, marked"Personal and Conf%tie.1".
No further action will be taken in this matter pending
receipt of instructions from the Bureau.
~w»2W=-M -
R. YIHITLEY,
Special Agent in Charge.
CC-Weshingiaon Field
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62-5552' ' 2.-,..,s. ,92__2.;Ix_X -,i,__m _» .4: M1 W... ,-=.=.-i_»=<w92.a..,..,,__._;__..;it-.,, 77 _-_i.4___ 511- n... v. Q ix.--hp =., 4 » .:.n - -- = -" r" -= *-
giaharal @111-nan uf gllnfreehgatrnnf X
Room 1.1405
570 avenue
New York, N. 1'.
1I1g92I-It 2,-In 19350
Ellireotor, _Federal Bureau ofInve ctigati en, *
U, S. Department of Justice,
Pennsylvania Avenue at Ninth Street, H. I.,
Washington, D. 0.
Dear $5.1":-RE: ALPHO SEQMPOHE with ali s.0. T-&ISHOP. STEPHEN Tigkm.
Conspiracy to Receive and Send
Contraband out of the United StatenIlr. Bsujhnen
Chief Clerk ....
Mr. Clog; .._...
Ir. Coley
lit. Edwards .
Mr. Ezan.....A
Liv. Foxworth
Hr. Ha:-be
Hr. Joseph
Mr. Keith .._-.
Hr. Lester ....
Hr. Quinn"...
in-. BchahiL...
nu. seam..-
lllh Tlmm _..
Ir. Treoy._..
Hili Glndy-.
-n-one -0.. - .--
_1?===4t=n*=1~rn-h 1E1e==;=1*-J°2=s1@- i
Reference is mde to my personal and c hl
letter to you dated August 3, 1955, relative to the investigative
activity conducted by Special Agent George J. Starr of this office
concerning article entitled "The "'1' Hen which appeared in the
-7§De-tective Fiction Weekly Magazine published by the Frank L. Hmiaey
Company of New York City, in the 158116 of llay 1;, 1955, in New York
File Eu; 62-5556.
IA re-view of this le and the eibo entitledmatter indicates the possibility of Major Charles E:§Ruasel1 hav-
ing some knowledge concerning the U. S. Penitentiary matter. The
letter of reference indicates that in additiento the article men-
tioned above, Major Russell has written a number of magazine arti-
cles and possibly books, relative to matters criminal and stated to
Agent Starr that he had written the "inside story of Al Capone at
Capone's request, and from material furnished by Capone himself.
In vi s interest in er -~ -I;
C activities, and a e ed_Rre'viouq ynnggtion 1:1-b1l_§1Ph°n§9 ; ...
theiBurea1_1 is MW? E9,-',1l1E_I§£!°3'Ed 17° @2115?-E5-61'_'|;h6&,<lI'3-B9-bi |-?I_°f
heeaieent ¬1=er;1n=-ieinte Meier Rve=¢11.1'or the e pee or
dete whether he has knowledge of the nanusor .- entitled"Th £1051-aphy of Al Capone Life in the atlenta Pe ' = tiary" which
was submitted to Mr. R. okam, Executive Editor r i eal Detective
Stories , New York City, together with various 92"j¬ clippings,
. J B. ,,, - I= 92v9}92 af-J ' .v;i' iii ii5-1935 Q xi 0 .e;¢Ji;;f;:;_
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Director August 214., 1935.
photographe of purported inmates of the United States Penitentiary
at Atlanta, scene: of that institution, oonsiderable correspondence
and what are purported to be official records of the Penitentiary
L. the etent %or Russell. is qmstioned upm these pants, ill
d ale be dete tether he has an connection with, F Barrett, and FrenkGuin.m, these three in
dividuale ving en no tioned in the 1 entitled matter.
Very truly yours,
/. , /'
Special Agent in
Washington Field;
NJI. File N00 62 5556
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' FEDERAL BUREAU OF INVESTIGATION
l"urn1No.1 ww-H~*+c:rw ac,T1-us CASE ORIGIHATED AT m " FlI..E. NO. mg m
REPORT MADE AT DATE WHEN MADE PERIOD FOR REPORT IIIADE BY IWI-ilcn MAD: O __ '
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lgter arrested his pa:-tnnr, Gui G1-uteri, on 1 01.11111 - largo; that Grautord,
, was a mom 1&1-ola violator and In hel tor thn Hike! States Rahal uni f
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adrieed he reported to the parole otee: ale-eqnirad, I-,;f"1g5;_ Q-I
a to to t tie Oi Jane to no Ma girl §ha *e, e J that finite; ';j;te:'
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nigm and um on the aeeend new he not cu-i 61-arreni, another
W1 '¢h=H1=~r M1111 W s= *= maven. hue-m= =11 tree *1ei",.P_tm'e@1ee»:i ,"to Tempe, flex-iéaf ind arrange for ms 511-]."'1'1.~i.'eM'to open a beauty '51
Mlle I
__ A, . . ,. Guinan stated that in and hie gir1_._£r1lII.d.IO1'Q P1-ll-_I§.'§0-H -
get married and he no perliaaion to drive her Plymouth Bedanend he ha"! -
ii: letters in his poaeeaaion establishing the feet tietja iai Qgtqigpion Iii-in ynq, o'er, one 1» 3,1.» no 4:-1 :Q1_'iend'a mm .
e hie wire jive ed Ilia. and the laet heheard or her lhl in living." J| Ba Iluylanl but ee btai-ling ':_a¢_iivoree, I e not to either »h-.-t -to 1»-=4 em 1-= -he =1».-L we Av V
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wrote a mall book, entitled "Remake: iani Ihieia eoneilted of aboit 156
pages, but that he wee refused permission to have it printed until his nan-
tenoe had been eerred. Guinan eai his book oenteinod In 1>h°V°8I'9Ph 91 F
reference to oioiel records, because all this could be out out Ihen the
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iiiiiiiii iii pouu iiiill
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Quinn saint that this onlyas iifiiiaiam
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up unpleyoi by 111: broth», upnnd int-nu, Ihajjiaiii-ates-n ' . '= f%?i"..'_'~"':;'*
stationary utablilhant at 31'? Inst Innklin hast, Bnllnrb,-.Ia7;J.|;d,, 1 1=-7'-1 . . -. w . :~. k ' -,.'- .~ -V 1 ~ - -2 _ r 1- - - A 7:1 , .. _ __."-.. - 1;: I-in ft" ' J1. _ I-:;_.: __ _~ _=f.-'92";{ 1» 1 mo: .9111»-I *'"'.1'_..'¢ 1% Mina 9,5 A-I84, "M
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_ Guiana statue he hai been in Iii In-2': Gity, In Yuk," lltv
oral than but that he has not been there sinus 1989. In ionic: knowing L I,
Hiscgn, gxenntivo oagta;-.nt the D11 Dohotivu stories; fjff.3 19;-1: litv In Yoxk or 1" hrhlit an am-an lultmn 1 ~ '1 A ' ' __ , _ . , _ _ 7. _ I _ 4 I'lIil_ hm 1:-IIn»|i;' " ;I .--v. 3 'v vv ' - :- v ---wnuwq. w-ww ff-Ivy Q1 _w" Iqywu-Ir? .up_w1IQCU.7.f F7i U , . __ .. land» an adv-Lad he bu nerd at a nah; henna on am ltrant, '
_I1ath_ Strut, ant gt 1 maxing henna an 191;; Strut up Sh ltchiaa Lit-9 5- -
nae, Io! Toxic 8131, lei Ink, but nu he don qt 1-cantor its min 6: n '
MW ! 1=¢=" *1" ~=. =>' r¢-@W*1. "W J »--
' ' 1 Y ' - - lot the benefit of the I'uhr111a' ' ""§'0' Co';crii'§'1;1L '
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GJS:EL September 10, 1935
62-5552 ' ,
1-.<_ |
uirector,
Federal Bureau of Investigation,
U. S. Department of Justice,
Pennsylvania Avenue at 9th Street, NW,
Washington, D. C.
Re: ALPHossQEAP0nE, with aliases, et al-'
cosslhscr T0 RECEIVE AND sssn
couwsssasn our or THE UNITED srssss
PEMIIENIIARY, ATLANTA, GEORGIA.
Dear Sir:
Reierence is nede to the letter from this office
to the Bureau, dated August 2 1935 and the reply thereto whichwas contained in personal contial letter from the Director
dated August 29, 1935.
In acc rdance with the instructions contained
in the Bureau letter, Sp ial Agent George J. Starr of this office
interviewed Major Charla E. Russell regarding the above matter.
Major Russell stated th he was not the author of the article
which tree submitted 1:-¢92 .ee.l Detective Stories entitled "'lhe
Biography of Al Capone ; Life in the Atlanta Penitentiary," sup-
posed to have been written by F.! <Ba.rrett, Baltimore, Md. The heme
of Barrett was mentioned, "but brought no response or reaction from
Major Russell, who apparently was not at all familiar with the "
name. He could offer no information as to who might write an ar-
ticle of that nature, but expressed the belief that it might be
an article more or less concocted by someone having some super: ___--e =---»=~s;1==i1--=- --;-I1=*-92i|n:t>_-==¢¢-i-¢~_-~- -7'» »»_-gm-3 we-»~> =rM-- -_--~~--.~+----:~=s=:.=4s=.»1-6-E-luiue-»~-ei~'I-<»~ec%|@:e_-d-io92e.si»;:s->_-e~~-=» -'»-~ -<7-~~-A see-is-i-..--,--in
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aide:-able -co:-reeponence, and yhat were purported to be 011'1c£_92a1, ; .A - -- - - -I-,4 »_.-l.__,I l_;_.;__ p _ ,g_________ "_A' K '
on one occasion from Beltimore, concerning the bale
or the manuscript; ' . " e
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P5é'<?§"é5 i'é'¢dr_#'§'tf'¥iiisi'_1i@.é__f§:¢i£1i12aiit.;;»;:<I;§51ia1-y incident
that ocourred within the walla, not alone concerning
GaTi5iie_"§f,T>1iT§Qhf1dentia1"o__matte;#a_bot|reen' the prisoniendthe i D°P§?1i§l9!L1i..,9I..--IIAFE$22..§1L.F§5h1n8t°~ Recognizing my
position Capone bid for end obtained my services as his
prison eec}w1:eMt__a;i~y, oven purchasing and giving to me a type
writer E'6 uae in the evenings with which to do his corree
pondance. i'Tatura11y, I was aware of efery thought ani
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In In "- =w=I===u - 1 ' :Editor, mu. nsmcwm srqgr mmznwl, ~ ' 4 -"
444 Madison Avenue, * . _ V _
New York City,
Dear Mr. Mickml " _ '
I trust you have had an opporhmity to read ttn
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office to be photoatated 11' the Bureau requests the semer - "
UNDEVELOPED um: uasgmggoggmg orgxgg.
At Baltimore, limb, will contact the ex-prese agency
to ascertain the facts of the receipt by F. Barrett, 325 North
Fulton Avenue, of the manuscript which was forwarded to him via
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570 Lexington Avenue '
New York City *Mr. Egan,_____,____
Mr. Foxworih
Mr. am», ' ' Me..:eeepsL92_ ,
sJs=EL - September 10, 1955 62-ssesobl 4 Mr - - QMPERSONAL AND c mum - " A 'sCh:;"t
. RECORDED . D as is _, e
1:. s. Department of Justice, F'L111*ir92 B-Y1-A U? H "1-W °
Pennsylvania Avenue at 9th reet, Nwuf 3 '935A_M_
p. Washington, D. C.
U. S. DEPARTMEF-5T JUQTICE./5.. . Re: ' ' ,
D ective Fiction Week ye FT[_""
- s QDear Siri
Reference is made to letter from this office dated
August 3, 1955, and Bureau reply thereto contained in personal
and" eenha-.tie.1 " tter from the Director dated August 29, 1955
J. Starr of this office, and furnished to Agent Starr informa-Mr. Keith
. Lester
92 Hr.#1child:
Mn racy,,__________
Miss Glndy ________ __
Major Charles Elssell was interviewed by Special Agent George "
tion to the effect that the present headquarters of the so-called
"Capone Syndicate", controlling racketeering in the ' dle West
Yarde wand East, is licated in Brooklyn, N. Ye, near the B ooklyn Navy
S 1 l
'e made a rough diagram showing th lane Democratic
Club on Yo Street, and stated that this is hangout for some
of the mi r members of the organisation; t two of the so-7/.
led
"big shot live on York Street; one of th known to him at Mike",
lives on he same side of the street as th e Democratic Club
is lo d and a block or so south, while another one, known to
him as hat-lie", lives on the opposite side of the street some
distance north of the location of the Lane Democratic Club. The
Lane Democratic Club is located at about the middle of the block,
and according to Major Russell, the actual headquarters of the
Syndicate is located in the premises occupied by an ice cream
parlor on either one of the two streets between which the Lane
Democratic Club is located and at the corner of the street east
of Sands Street and parallel thereto. He stated that this loca-
ti on would be identified by the fact that diagonally across the
street, in the middle of the block, would be found an Italian
restaurant run by an individual who is supposed to be a Count.
Major Russell also stated that a favorite hangout for these people
-. e__ _ _._: __ ..i _ ._ ......_... .. :.. .... .. n _._- ... ll .....1S 1.11 B. grlll ur cafe, the xwsuu uf v'ui1.1.uh la the Seashell uJ.'
some similar name» 92
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c G;;:>
Director
S2-5556
9-10-35
Special Agents Starr and Bryan Farrell of this office drove
through the territory included in Major Russell's description for the
purpose of checking whether or not there is any indication of the
accuracy of the addresses furnished. The agents found that the
Lane Democratic Club is located at 200 York Street, telephone,
Cumberland 6-9576, and it is situated between Gold and Charles Streets.
The agents then drove along Gold Street, and at the corner of Gold
and Nassau Streets found the Nassau Ice Cream Parlor. Nassau Street
continues on into the Bridge Plaza, and located next to the ice cream
parlor are some very we1lbuilt garages. Both of these facts cor
roborate what was mentioned by Major Russell in endeavoring to desig-
nate the exact location to Agent Starr. The Italian restaurant,
however, which was supposed to be located diagonally across the
street, was not observed by the agents. Following the street around
the Navy Yard wall, agents found that the Sea Grill was located in
approximately the location described by Major Russell, at the corner
of North Elliott Street and Flushing Ayenue.
as to the operations of these people, Major Russell stated
that as far as he knows, these mn do not theselves participate in
any activities such as handling "hot" bonds or jewelry or operating
any vice or-gambling establishments. they do, however, comletely
control the so-called "protection? racket. They have divided the
entire Middle West and East into districts, and the City of New York
is also divided into districts, and the people operating in the
various criminal activities in these districts do so with the per- '
mission of the Syndicate and in accordance with the dictates of the
Syndicate. Disputes between various operators of illegal activities
in the districts, or disputes between contiguous districts SIB
settled by this Syndicate, and practically daily meetings are held
by the heads of the Syndicate in the premises in which the above-
mentioned ice cream parlor is located. It is impossible to operate
any of the profitable rackets without the sanction of this Syndicate,
and the revenue of the Syndicate is derived from the cut which it
takes on all revenue from such activities.
Major Russell states that the members of the Syndicate
have no trouble getting things which they want. For example, he
mentioned in confidence that when he expressed a desire to obtain
a nice fox neck piece for his daughter, he obtained one through
one of the members of this Syndicate for an amount far below its
actual value. More recently, he states, he was approached by a
certain Sheriff of New Jersey, whose name he did not disclose, but
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Director
62-5556
9-10-35
who is about sixty-five years of age and is shortly to be married,
1:119 desired to obtain a _diamond bracelet 1'01 hi8 intended bride,
stating that he would like to get something worth about $10,000
and would pay therefor about $2,500. Major Russell states that he
spoke to one of the members of the Syndicate, possibly either
Mike or Charlie, and was told that the word would be sent out
that such an article was wanted, and that as soon as it was
available, it would be delivered to Major Russell. The latter
states, however, that he informed them that he had no desire to
handle the article and that when the article was obtained, if
they notified him, he would bring their representative to the
prospective purchaser or vice versa-
Agent inquired further of Major Russell whether or
not he had any information to indicate that this Syndicate actually
handled any hot bonds or securities at the premises where they
have their headquarters, and he stated that they did not, CO3?
tinuing alo this line versation, however, he stated that somewhere on in New Y located a G
detective agency operated by a man named , uho claimsto have some very good contacts and supposedly does some work
for the Standard Oil and Vacuum Oil Com anies. One of his emr
ployees or ass ciat s is a man named , commonlylcnown as i This , accor ing to Major
Russell, ha§_approached him on three different occasions re-garding the possibility of disposing of some "hot" bonds or "J
securities. However, Major Russell states he never went into
any details of the matter, has absolutely no knowledge of the
nature of the securities of uhish this man was trying to dis-
pose, and does not know whether all three conversations per-
tained to the same lot of securities or whether these were three
different transactions.
" With referenoe to the financial activities of the
Syndicate, Major Russell stated that the Syndicate is at the
present time financing the construction of a large, glass-enclosed
club or cafe, which is to be located on the bottom of the ocean
somewhere near Miami, Flas, share the guests will be surrounded
by marine life visible through the glass walls while they partake
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Director
62-5556 .
9-10-35
unlisted telephones in the premises occupied byithe ice cream parlor,
which premises served as headquarters for the Syndicate. This is not
substantiated by the Brooklyn Address Telephone Directory. p
During the previous interview, Major Russell stated
to Agent Starr that after he had written the life of Capone, upon
the latter's instructions, for the purpose of clearing up in the
minds of the underworld and Capones friends and enemies the reason
for the scar on Capone's face, Capone sent to him by one of his _
henchmen an envelope which presuably, according to Major Russell,
contained money to compensate him for having written the article. He
stated, however, that he declined to accept this envelope, as he had
been adequately compensated when he sold the story to the press.
During the course of the more recent interview, passing reference
was made to this incident, and on this occasion Major Russell stated
that the envelope contained, as he termed it, "ten grand", meaning,
of course, $10,000. In connection.with the above discrepancy, Agent
Starr states that during the previous interview, it was'made very
clear by Major Russell that he had not seen the contents of the
letter; therefore, could only presume that it contained money.
Major Russell promised to get in touch with Agent
Starr at a future date in the event that he picked up any further
information. The agent states that Major Russell appeared to be
slightly disappointed that he had not been invited to Washington to
be interviewed there or possibly here by the Director, although he
stated to the agent that he was quite willing to discuss these mat-
ters with the agent, for the reason that he has known the agent for
a number of years.
It is Major Russell's opinion that it will take a
very clever agent to work in with these people, but that possibly it
could be done by someone who looked the part and who could hang around
the Sea Grill. He also suggested the possibility of taps on the tele-
phones located in the premises where the ice cream.parlor is. ,
No further investigation is being undertaken with
reference to the activities of the Syndicate described by Major Rus-
sell, pending receipt of instructions from the Bureau.
A copy of this letter is being forwarded to the
Washington Field Office for the atte on of Special Agent in Charge
J. H. Keith, marked Personal and Co vial.
Ve y yours,
lu-
cczwashington Field . ' T ,
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