Archive for the International Longshoremen Association

Joe Bruno on the Mob – Johnny Dio – A Gangster’s Gangster

Posted in Cosa Nostra, criminals, disasters, FBI, FBI, Gangs, gangsters, Internal Revenue Service, labor unions, mafia, mobs, Mobsters, murder, New York City, New York City murder, organized crime, police, Uncategorized with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on March 9, 2012 by Joe Bruno's Blogs


                If there was a way to make an illegal buck, Johnny” Dio” Dioguardi, called by Bobby Kennedy the “master labor racketeer,”  had his sticky fingers in the pot. Dio was such a treacherous thug at a young age, in 1936, U.S. Attorney Thomas E. Dewey claimed Dio was, “A young gorilla who began his career at the age of 15.”

            Johnny Dio was born Giovanni (John) Ignazio Dioguardi on April 28, 1914, on Forsyth Street in downtown Manhattan. Dio had three brothers: Frank and Vincent, who were legitimate guys, and Tommaso, or Thomas, who became, as did Johnny Dio , a capo in the Luchesse crime family. Dio also had an unnamed sister who can be identified only as “Mrs. Dioguardi-Priziola.”

 Dio’s father Giovanni B. Dioguardi, who owned a bicycle shop, was murdered in August 1930 on a street in Coney Island, in what police called a “mob-related execution.” It seemed that the elder Dioguardi and another enterprising gentleman had robbed a rich lady of her jewelry, and the two men had were arguing over how to split the proceeds. The elder Dioguardi, who had been arrested twice for murder but never convicted, took six shots to various parts of his body, and it is presumed the other gentleman kept all the jewelry.

Johnny Dio graduated grammar school, but after less than two years at Stuyvesant High School, Dio dropped out and went to work for his uncle on his mother side: gangster James “Jimmy Doyle” Plumeri. By this time, the handsome Dio (who was said to have looked like silent movie star Rudolph Valentino) had already gotten a reputation on the Lower East Side as a tough youth, who terrorized street vendors into giving him a good portion of their wares for free. Uncle Jimmy Doyle (nobody called him by his real name Plumeri), recognizing Dio’s talents for thuggery, immediately put Dio to work as a schlammer (leg-breaker) in the Garment Center for Doyle’s Jewish associates Louie “Lepke” Buchalter and Lepke’s partner Jacob “Gurrah” Shapiro, who were affectionately known as “The Gorilla Boys.” Lepke, along with Albert “The Lord High Executioner” Anastasia, was the head of Murder Incorporated, a group of stone killers who murdered whomever the mob bosses in New York City and around the country said needed to be murdered. However, there is no proof that Dio ever joined that august group. Dio’s specialty was union-related extortion, and in that, he was tops in his field.

Dio and Doyle started a garment workers trucking association, whereby the truckers working in the Garment Center were forced to join the trucker’s union, headed, of course, by Dio and Doyle. If a poor sap trucker decided he didn’t want to join the  union, a trip to the hospital was inevitable, if not a trip to the morgue. The union dues was hefty, but at whatever price they were forced to pay, it was a small price indeed to ensure the  trucker’s continued good health. Of course, the “union dues” never made it into the union’s coffers (it went straight into Dio’s and Doyle’s pockets instead), and phony books were established to satisfy whomever decided to enquire about the trucker’s union’s financial solvency.

Members of the trucker’s union were even told where to spend their money and how much to spend on specific items. Dio and Doyle were pals with a local barber, and they ordered their truckers to patronized this special barber to the nifty tune of $2.50 a month. The truckers were also told where to buy their wine, where to buy their meats, and where to buy their clothing, and how much to spend on each item, which was certainly not at bargain prices.

For several years in the 1930s, Dio and Doyle, with nobody to stop them, had a sweet deal going for themselves in the Garment Center. Besides extorting the truckers, the dynamic duo of Dio and Doyle profited from the other end of the totem pole too. They forced the Garment Center’s clothing manufacturers (bosses) to employ only union truckers. Then they used the clout of their trucker’s union to bulldoze the clothing manufacturers into paying hefty off-the-books fees in order to keep their business up-and-running, and profitable.

If the clothing manufacturers refused to pay the extortion fees, Dio and Doyle would order their union truckers to go on strike, putting a dead stop to the clothing manufacturer’s cash flow. On occasions, if the bosses didn’t play ball, union thugs (schlammers) would break the bosses’ fingers, their arms and legs; and sometimes all three body parts on the same visit.  In extreme cases, like if a boss threatened to talk to the Feds, Lepke’s Murder Incorporated boys would enter the scene, and seconds later, the chatty boss would exit the face of the earth, toes up.

In 1932 and 1933, Dio and Plumeri were indicted twice for extortion, but they beat the rap both times, because their victims refused to talk to the Feds. In 1934, Dio was lucky enough to be elected executive secretary of the Allied Truckmen’s Mutual Association, an association of employers. Even though Dio was boss of the trucker’s union, he represented their employers during a strike by 1,150 Teamsters in September 1934.

            Nice work if you can get it.

However, in 1937, both Dio and Doyle ran out of luck. The nephew and uncle duo were indicted for extortion and “atrocious assault.” During the trial it was alleged that Dio and Doyle, and several other of their gangster underlings, had been extorting as much as $500 from each trucker. Plus, it was alleged they had forced the clothing manufacturers to add a hefty “tariff” to every suit, coat, and pair of pants manufactured in the Garment Center. This tariff went straight in the pockets of Dio and Doyle, and that increased the cost of good for the general public.

Sweet deal indeed.

According to an article in the New York Daily Mirror, “At the trial, frightened witnesses testified how recalcitrant employers and employees were beaten when they refused to pay. One man said he was confined to bed for two weeks after an assault. Another said the hoodlums had threatened to cut off his ears.”

Realizing they were dead in the water, during the middle of the trial, both Dio and Doyle pled guilty as charged. In return they received free room and board in upstate Sing Sing Prison for a period of three-five years.

After he was released from prison, Dio decided New York City was too hot for him, so he moved to Allentown, Pennsylvania, where he took up roots long enough to open his own dress manufacturing plant; non-union, of course. He later sold the plant, and to guarantee the new owners would have no trouble, Dio took $11,200 under the table to ensure that his erstwhile plant would remain non-union.

Dio sped back to New York City, and using the same tactics he had employed in Allentown, he  set up a dress wholesaler. Using his profits from the business, Dio was smart enough to buy legitimate businesses, which included real estate and trucking. He also dabbled in the stock market, making him seem to the IRS as just another tax-paying citizen. But the New York City police knew better. They just couldn’t pin anything illegal on Dio, although they continued trying.

Back in his old Forsyth Street neighborhood, Dio decided to start a family. He married the former Anne Chrostek (a non-Italian). She bore Dio two sons (Philip and Dominick) and one daughter (Rosemary) who sadly passed away from an unknown illness. It was during this time that Dio, before the age of forty, was officially inducted into the Luchesse Crime Family, making him all the more untouchable on the streets of New York City. Even though they were only Italian on their father’s side, both of Dio’s sons eventually followed in their father’s footsteps into a life of crime. Philip Dio, who was called “Fat Philly,” was later inducted into the Colombo Crime Family, while Dominick, like his father, became a made man in the Luchesse Crime Family.

(Editor’s note: The Mafia rules changed around this time to allow more members to be inducted into the “Honored Society,” to fill the gaps of those who either were killed or sent to the can;  “college” as the mob likes to call it. At this point, only your father (not both parents) had to be Italian for you to get “your button.” If your mother was Italian and your father a non-Italian — you were spit out of luck. Them’s the breaks.)

By the 1950’s, Dio had become a powerful captain (capo) in the Luchesse Crime Family, and with money pouring into his coffers in bundles (he allegedly earned $100,000 a week), he started living the life of a colonial baron. In the early 1960s, Dio moved his family into a spacious estate out on Freeport, Long Island, which cost Dio $75,000 in cash (Dio didn’t like banks or bank loans). During the week, Dio ate with his cronies in the best New York City eateries (his favorite being the trendy Black Angus Steakhouse). But, as is the Italian custom, Sundays were strictly for the family (famiglia). Inviting family member and close friends, Dio was proud of the fact he was an expert cook and was personally able to conjure up the best Italian delicacies to delight his guests. Dio was especially gracious to his wife, whom he loved dearly (unlike most mob men, Dio was faithful to his wife). Instead of personally buying his wife Christmas presents, Dio would give her a shoe box stuffed with cash, with a little note saying, “Buy yourself some nice clothes, honey.”

During the 1950’s, through his connections with New York City Teamster leaders Martin Lacey and John O’Rourke,  Dio became tight pals with Teamster big-wig Jimmy Hoffa. Dio and Hoffa  first met in a secret meeting in a New York City hotel room, and Hoffa, who had hoped to unseat Teamster President Dave Beck, figured  Dio, with his union background, would be the perfect person to become chums with. In late 1955, Dio was able to obtain charters from the Teamsters to set up seven Teamster locals, called “paper locals,” because they did not have actual teamsters as members. The roles were filled with Dio’s relatives and pals, and their vote for teamster president was in Hoffa’s back pocket.

Dio’s modus operandi for more than 30 years was this: control the unions, then use the unions as a sledgehammer over the heads of the bosses. Dio would tell the bosses, “Pay or my boys will strike.”  The bosses always paid, the workers always got screwed, and Dio made out like a bandit every time.

During his illustrious criminal career, Dio controlled the unions to the detriment of its members to such an extent, that during the 1950’s McClellan Committee hearings into organized crime, the committee issued the statement, “It cannot be said, using the widest possible latitude, that Johnny Dioguardi was ever interested in bettering the lot of the workingman.”

Famous Mafia turncoat Joe Valachi owned a dress factory on Prospect Avenue in the Bronx for 12 years. Valachi once said, “I never belonged to any union. If I got into any trouble, any union organizer came around, all I had to do was call Johnny Dio and all my troubles were straightened out.”

However, in 1956, as the Teamsters elections neared and they were scheming for control, both Hoffa and Dio had a stone in their shoe, and his name was syndicated newspaper columnist Victor Riesel.

Victor Riesel was born on March 16, 1913 on the Lower East Side to Jewish parents in a mixed Italian/Jewish neighborhood, not far from where Dio grew up.  Victor’s father, Nathan Riesel, was very proactive in union activities and was instrumental in creating the Bonnaz, Singer, and the Hard Embroiderers Unions. In 1913, he also helped organized Local 66 of the International Ladies Garment Workers Union, and soon he was elected secretary-treasurer of that union, then finally president.

When Victor Riesel was a young child, his father taught him how to make union speeches, which the young Victor fiercely gave at union meetings and at outdoor union rallies. Nathan Riesel was hard-line anti-communist, and he was strident in preventing the communists from infiltrating his locals. Victor saw his father return  home many times, beaten and bloodied from fights he had with communists activists, or the mobsters (schlammers) who were hired by the factory owners to break up union strikes that Nathan Riesel had participated in. This formed the notion in Victor Riesel’s young mind that gangsters were the bane of legitimate unions.

In 1926, Nathan Riesel moved his family to the Bronx, where Victor attended and graduated with honors from Morris High School. While in high school, Riesel began working as an “stringer” for several newspapers throughout America. His writings were mostly about the labor movement in the United States, and how they were hampered by a “gangster element,” who sought to play both ends of the spectrum by infiltrating the unions, then working for the boss manufacturers to physically quell any union strikes or demonstrations. In 1928, Riesel enrolled in night classes in the City College of New York City (CCNY), where he took courses in human resource management and industrial relations. To support himself while attending night school, Riesel worked at strenuous jobs, both in a steel mill and in a saw mill. While in college, Riesel also worked as a columnist, then as an editor on the student newspaper. Besides writing columns on the labor movement, Riesel also wrote columns on varied subjects like literature, and the theater.

While in college, to get needed experience in the outside newspaper world, Riesel took a job as a general office boy at The New Leader, a political and cultural weekly magazine that was both liberal and anti-communist. Riesel cuts his teeth in the business by doing anything his bosses at the newspaper told him to do, including sweeping the floors, and writing columns for the newspaper. In 1940, after 12 long years of hard work, both in and out of school, Riesel finally earned his Bachelor of Business Administration from CCNY. He was offered the job as the managing editor at The New Leader, and he took the job with the determination of ridding the unions of “gangsterism.”

Riesel caught his first big break, when in 1941, he was hired as a columnist for The New York Post. In the 1948, when the Post changed management, Riesel switched to the New York Daily Mirror, owned by newspaper magnate William Randolph Hurst. By 1956, Riesel’s column was syndicated in 193 newspapers throughout the United States. In that same year, Riesel began working in conjunction with United States Attorney Paul Williams, with the expressed purpose of taking on the gangsters who ran the New York City garment and trucking unions.

This was a double whammy for Johnny Dio, who was heavily involved in both unions, and for Jimmy Hoffa, who was trying to unseat Dave Beck as head of the Teamsters.

On April 5, 1956, Riesel was asked to be a guest host on Barry Gray’s WMCA overnight radio talk show. Riesel had recently been on a rant in his columns concerning the International Union of Operating Engineers and its President William DeKoning Jr., who Riesel claimed was conspiring with known labor gangster Joseph Fay to reinstall DeKoning’s father William DeKoning Sr. as the president of the union. DeKoning Sr. had just exited the can after being imprisoned for extortion, and Riesel felt that having the senior DeKoning back as president of the union would be a downright disaster.

As a result of his columns on both DeKonings and Fay, Riesel received numerous death threats. However, Riesel shrugged them off, knowing only a fool would hurt an esteemed member of the press. Doing so would certainly result in the law coming down hard on all union racketeers, and their rackets.

On this particular radio show, Riesel invited two members of the International Union of Operating Engineers, who were challenging the DeKonings for control of the union. This did not sit too well with Johnny Dio, or with Jimmy Hoffa, who both figured Riesel would go gunning for them next.

Gray’s show originated  at Hutton’s Restaurant on Lexington Avenue and 47th Street. After the show, which ended at 2 a.m., Riesel and his secretary moseyed over to Lindy’s restaurant, on Broadway between 49th and 50th Street, to grab a bite to eat and drown the food down with hot steaming coffee. (Ironically, this was the same Lindy’s Restaurant in front of which small-time gambler Herman Rosenthal was shot to death in 1912.)

At approximately 3 a.m., Riesel and his secretary emerged from Lindy’s and started walking toward the secretary’s parked car on 51st Street. Riesel wore his eyeglasses to work, but when he was out in public, for appearances sake, he normally removed his eyeglasses. Just as Riesel and his secretary neared the secretary’s car, Riesel took off his eyeglasses, put them in an eyeglass case, and inserted the case into the breast pocket of his overcoat. Suddenly, a tall, thin man, wearing a blue and white jacket, sprung from the shadows of the Mark Hellinger Theater and flung a vial contain sulfuric acid into Riesel’s eyes, rendering Riesel blind for the rest of his life. Then the assailant calmly walked away and disappeared into the night. Thereafter, Riesel wore sunglasses to shield the public from the sight of his severely disfigured eyes.

The day after the attack, the Daily Mirror offered a $10,000 reward for information that led to the capture and conviction of Riesel’s assailant. The Newspaper Guild of America, the New York Press Photographers, the New York Reporters Association, and the Overseas Press Club chipped in with another five grand. In less than a week, donations from assorted groups, including the labor unions and radio station WMCA, had raised the reward total to $41,000.

With tips coming in in droves, some reliable, some not so reliable, in August of 1956, the FBI ascertained that Riesel’s assailant had been small-time hood Abraham Telvi. The only problem was, Telvi was now deceased; apparently murdered on July 28 because he had demanded another $50,000 on top of the paltry $500 he had already been paid for throwing the acid in Riesel’s face.

On August 29, Dio was arrested for conspiracy in the Riesel attack. Dio pled not guilty and was released on $100,000 bond.

On October 22, Dio’s pal Joseph Carlino pled guilty to hiring Telvi to attack Riesel. Carlino implicated two other men, Gandolfo Maranti and Dominick Bando, as accomplices in hiring Telvi.  Carlino also said that Dio had ultimately given the order for the attack. Dio lawyered up with a top New York City mob attorney, and his attorney was able to get Dio’s trial severed from the trial of Maranti and Bando.

At their trial, both Maranti and Bando verified Carlino’s assertion that Dio had engineered the attack against Riesel. Maranti and Bando were both found guilty of conspiracy. But their sentencing was delayed until after the Dio trial.

Dio’s attorney was able to delay his trial for almost six months, and during this time Maranti and Bando began to have bouts of memory loss. When Dio’s trial finally commenced, both Maranti and Bando recanted their testimony, and with no corroboration of Carlino’s claim that Dio ordered the Riesel attack, all charges against Dio were dropped. Maranti was given 8-16 years in prison, and Bando 2-5 years in prison, and another 5 years for contempt of court. Amazingly,  Carlino received a suspended sentence for aiding the law  in the convictions of Maranti and Bando. However, no matter how the situation was cleared or not cleared up in court, Dio has forever been remembered as the man who “blinded Victor Riesel.”

In October of 1956, Dio was indicted, along with several Teamster officials, on extortion and conspiracy charges. The indictment said that Dio had extorted money from New York City Garment Center truck drivers, and had also extorted money from Garment Center manufacturing bosses not to have the same truck drivers go out on strike. Also included in the indictment was the alleged extortion of New York City stationery store owners, whose stores Dio’s men had picketed. The store owners were allegedly told that if they wanted the picketing stopped, they would have to force their employees to join Teamster Local 295, and hire Johnny Dio’s “labor consulting” firm, Equitable (not) Research Associates, for a $3,500 retainer, and $200 a month salary.

Because Dio’s attorneys were so adept at stalling tactics, and the fact that key government witnesses had recanting their testimony, Dio’s trial did not take place until November of 1957.

The trial took four weeks, but when it ended, Dio was convicted as charged and sentenced to two years in prison. While in prison, Dio was indicted again on extortion charges. This time, instead of the victims being stationery store owners, they were the owners of electroplating shops. In 1958, Dio was convicted again, and this time the judge threw the book at Dio, sentencing him to 15-30 years. Dio began serving his time in Sing Sing Prison, while appealing his sentence. On June 23, 1959, an appeals court inexplicable overturned the decision in Dio’s trial, saying that since Dio didn’t issue the threats personally, he should not have been convicted of extortion. A split court ruled, “Extortion cannot be committed by one who does not himself induce fear, but who receives money for the purpose of removing or allaying pre-existing fear instilled by others.”

Jonathan Kwitney said in his book Vicious Circles, “The decision seemed to legitimize the whole purpose of the Mafia.”

However, the law was not finished with Johnny Dio. On June 24, 1959,  one hour after he finished his two-year bit on the first extortion charge, Dio was pinched by the Feds and charged with income tax evasion; for non-payment of taxes for three dress manufacturing companies he owned (non-union, of course), and two labor union locals. Dio went on trial in March of 1960. He was found guilty and was sentenced to four years at the federal prison in Atlanta, Georgia. Dio was released in March of 1963, partially on the basis that he had obtained a real job in a legitimate industry. Dio claimed he was now a salesman for Consumers Kosher Provision Company, another sham job that provided Dio the opportunity to do what he had done in several other industries before. This time it was the kosher meat business that would pay the piper for Dio’s Machiavellian machinations.

At first, the scam worked like a charm. Dio and a bunch a his mobster buddies separately approached two rival kosher meat companies and convinced both of them that their business would be ruined if they did not hire their group of thugs to fight back against the other company’s group of thugs. The two competing companies were the Consumers Kosher Provision Company, run by a dupe named Herman Rose, and the American Kosher Provision Inc., who had employed mobster Max Block (he had just been forced to resign as head of the butcher’s union) to make sure other mobsters didn’t try to shake down American Kosher. Block’s muscle was provided by Genovese thug Lorenzo “Chappy” Brescia, who had been extorting the butcher’s union for years. According to Vicious Circles, Block was receiving an annual salary of $50,000 a year from American Kosher, and Brescia’s cut was $25,000 a year.

This is where Dio began working his magic in the kosher meat business. Through two intermediaries, Dio approached Herman Rose and convinced Rose that in order to compete with American Kosher, it was imperative Rose hire Johnny Dio to protect his interests. Rose figured this was the right thing to do and he hired Dio at the salary of $250 a week; not an exorbitant amount of money. But it gave Dio the appearance of an honest job, and it gave the Mafia the opportunity to control the prices in the two top kosher meat companies in the area. (This is why, overnight the price of kosher meats skyrocketed.)

After Herman Rose died in 1964, Dio convinced the Kleinberg family, which owned the majority of stock in Consumer Kosher that it was good business to merge with American Kosher. The Kleinbergs, trembling in their boots, agreed with Dio’s assessment, and with the mob running both companies, the “bust-out business” in the kosher meat industry began in full throttle. 

Soon, Dio and his pals, using their usual tactics, began scooping up, and creating from scratch, other small kosher meat companies. Stock was transferred back and forth between the companies, and so were the assets, which included the kosher meat itself. First, Consumer Kosher went bankrupt; then did American Kosher. The other Dio-controlled companies started acquiring the meats (that had not been paid for), and one by one, they too declared bankruptcy, only to be acquired by another sham company owned by, what the newspapers called, “The Kosher Nostra.” The suppliers of the meat out west, because of the multiple bankruptcy proceeding, were stiffed of their meat payments. According to New York Post reporter Marvin Smilon, one of these meat providers had the temerity to ask one of Dio’s meat cronies, “Why do we have to deal with Dio?” He was told, “Sit down and be quiet. You ask too many questions.”

But all good things must come to an end. In 1966, Dio, along with four of his associates, were indicted for “bankruptcy fraud.” In 1967, they were all found guilty, and Dio was sentenced to five years in prison. However, with his high-powered attorneys working their magic, Dio was able to stay out of prison for almost four years. This gave Dio the extra time he needed to work another scam, called “The Great Mafia Bagel War.”

It started with Ben Willner, who had a machine that could make automated bagels, for around 50 cents a bagel, whereas a hand-rolled bagel cost about 65 cents to produce. This was not good news for the Bakery and Confectioners Workers Union, because it put their member’s jobs at risk. Willner was great pals with Moe Steinman, who didn’t care too much how the bagels were being made, because he had a stranglehold on bagel distribution, not bagel production. Willner ran to Steinman, and Steinman, hoping to help his pal out, introduced Willner to Johnny Dio, whom Steinman knew was an expert at “labor-related problems.” Dio helped out Willner, for a piece of the pie of course, and soon Steinman was packing his supermarkets with anywhere from $3,000 to $4,000 worth of Willner’s bagels a week.

The only problem was that Genovese Crime Family capo Thomas “Tommy Ryan” Eboli had his own bagel maker, who was being short-changed because of the Willner/Dio/automated bagel-making machine trio. This man was named Arthur Goldberg and he ran to Eboli, screaming. Eboli demanded a sit-down with Dio, who had been with the Luchesse Family for more than 30 years. At the time, in the New York City Mafia pecking order, the Genovese Family was much more powerful than the Luchesse Family, and Dio was effectively pushed out of the bagel business for good. Dio broke the bad news to Willner, and as a result, in December of 1969, Willner was forced to close shop. This led to the Eboli/Goldberg crew taking over Willner’s business, and his automated bagel-making machines.

Dio felt bad about losing his bagel scheme, but he felt even worse, when in November of 1970, he ran out of appeals and was forced to go to prison for a five-year stretch at the federal prison at Lewisburg, P.A. on the bankruptcy fraud charges. (He did not Pass Go, and he did not collect the customary two hundred dollars.)

In 1972, while still in prison, Dio was indicted again, this time for stock fraud, concerning the At Your Service Leasing Corp., a luxury car leasing firm that did most of its business with organized crime figures. It was alleged that in 1969, before Dio went to prison, Dio, along with Carmine Tramunti, Vincent Aloi, and Michael Hellerman, “floated” $300,000 of false stock in the car leasing company. Dio’s group then either bribed, or forced security dealers to sell the stock, and then turn over the money to the Dio investment group. The jury found Dio guilty, and he was hit when a knockout blow when he was sentenced to nine and ten-year prison terms, to run consecutively. Dio appealed his convictions twice, but he lost both appeals.

Johnny “Dio” Dioguardi never was a free man again. Dio died on January 12, 1979, in a Pennsylvania hospital, where he had been transferred to from federal prison. To add insult to injury, Dio was scheduled for parole in just a few short months.

The news of Johnny Dio’s death did not receive an inch of space in any of the New York City daily newspapers, even though a paid death notice appeared a few days after his death in the New York Daily News.

It was as if Johnny Dio, a gangster’s gangster if there ever was one, had never existed.

http://www.josephbrunowriter.com/index.html

Joe Bruno on the Mob – Joseph P. Ryan – President of the International Longshoremen Association – Port of New York

Posted in biography, bootleggers, Cosa Nostra, criminals, crooks, Gangs, gangsters, labor unions, mafia, mobs, Mobsters, murder, New York City, New York City murder, organized crime, police, riots, Uncategorized with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on August 27, 2011 by Joe Bruno's Blogs


In 1892, the International Longshoremen Association (ILA) started out as a legitimate labor union in the Great Lakes area, to help the dockworkers get a fair shake from their employers. The ILA expanded to the east coast, and by 1914, ILA’s New York District Council was created. Almost immediately, the ILA became a mob stronghold, manipulated by the most vicious Irish mobsters of that era. The most prominent of whom was Joseph P. Ryan. But we’ll get to Ryan later.

To understand how the mob manipulated the docks, and the ILA, you must grasp the manner in which dockworkers were hired daily. The method for hiring was not who was the most qualified, the strongest, or the most industrious person available. The only thing that mattered is that you paid tribute to the hiring boss, who ran the docks like the Gestapo ran Hitler’s Germany.

The way it worked was like this: twice a day, all able-bodied men, who were looking for work, would line up in front of the loading dock. Then a stevedore (hiring boss) stood smugly in front of the dock, and one-by-one he selected the men who he deemed lucky enough to get a day’s work. Of course, you had no chance of getting a job if you didn’t give the stevedore a percentage of your day’s pay. The stevedore would then kick up the cash to the head stevedore, who would in turn kick it up to the ILA bosses. With this money, the ILA bosses would then grease the palms of politicians and cops, and everyone else who needed to get paid, to keep the money rolling into the pockets of the big shots who ran the ILA. And if you were known as somebody who had given the ILA trouble in the past, you might as well have stayed home, because there was no way the stevedore would even look at your face.

Joseph P. Ryan first burst on the scene around 1917, when he organized the ILA “New York District Council,” a branch of the nationwide ILA. In 1918, Ryan became president of the ILA’s “Atlantic Coast District.” It was during this time that the power began shifting from the Great Lakes to the Port of New York, which was closer to Europe, where many of the ships that were unloaded on the docks originated. During this time, the ILA was facing strict competition from the west coast-based Industrial Workers of the World (IWW). The ILA was attempting to draw in the IWW into their organization, and in 1919 they succeeded.

In 1921, ILA President T.V. O’Conner resigned, and his place was taken by Anthony Chlopek, who turned out to be the last ILA President based in the Great Lakes. It’s not clear if he was appointed by Chlopek, or elected by the membership, but Joe Ryan served as the First Vice President of the ILA for all six years of Chlopek’s presidency.

In 1927, Ryan’s time had finally come. Ryan was elected President of the ILA, which power base was now firmly entrenched in the Port of New York.

Ryan’s journey from basically nobody to the President of the ILA had not been an easy one. Ryan was born on May, 11, 1884 in Babylon, Long Island. His parent were Irish immigrants, and Ryan suffered a severe blow at the age of nine when both of his parents died within a month of each other. Ryan was put in an orphanage, but he was eventually adopted by a woman who brought Ryan to live with her in the Chelsea section of Manhattan, a few blocks south of the lawless Hell’s Kitchen area.

Ryan did menial jobs in the neighborhood, before he got a job loading and unloading on the Chelsea Piers. In 1917, Ryan purchased his union book for the sum of two dollars and fifth cents. Within a few weeks, Ryan hurt his foot while unloading a freighter, and when he was released from the hospital, and not being able to work on the docks again, Ryan was somehow appointed to the job of secretary of ILA Local 791. From that point on, there was no stopping Joe Ryan’s meteoric rise.

“Boss Joe,” as Ryan came to be known, was a ruthless fighter, who elevated the shape/payback system on the docks to an art form. To enforced his vice-like grip on the ILA membership, Ryan hired the worst men imaginable, some of whom has lost their jobs as bootleggers when Prohibition ended in 1933, and some of whom had just recently been released from prison, where they had been sentenced for committing the most violent of crimes. These were the perfect men for Ryan to employ, since cracking a few heads, or legs, and maybe even killing a person once in a while, was certainly not adverse to these men’s nature.

Ryan’s power was so absolute, he organized fund raisers (his men were compelled to contribute, or else) for the politicians who were on Ryan’s pad; one of whom was Mayor Jimmy “Beau James” Walker. When Walker was forced to resign in 1932, Ryan, with tears dripping from his pen, issued a statement supporting the disgraced Walker. Ryan wrote, “The labor movement in the city of New York regrets that political expedience has deprived them of a Mayor whose every official act has been in conformity with the Americanistic (Ryan invented that word himself) policies of organized labor.

Ryan’s plan was to control all dockworkers in the United States, but in fact, his power hardly extended outside the boundaries of New York. When Franklin D. Roosevelt ascended to the Presidency in 1933, he enacted his New Deal, which solidified Ryan’s total control of the ILA. “The Norris-La Guardia Act,” which limited the use of injunctions to prevent strikes and picketing, helped Ryan assert his muscle on the docks. And the Wagner Act of 1935 guaranteed the rights of workers to vote for their own representation. And who controlled those votes? Why Joseph P. Ryan, of course.

Ryan’s biggest problem in uniting all ILA workers in America was the resistance he received from the west coast contingent, which was led by radical left-winger Harry Bridges. In 1934, Bridges organized a strike of the West Coast ILA, in rebellion over a contract Ryan had negotiated on their behalf. Ryan, incensed at the west coast insurrection, traveled extensively all over the west coast of America: to San Francisco, Portland, Tacoma, and Seattle. In each location, Ryan argued the main sticking point to the negotiations: the shape-up form of employment. Ryan and his New York pals were for it, everyone on the west coast was against it; saying it was unfair to the workers. The West Coast ILA wanted to implement a “hiring-hall” system, in which “time in the hold” and “seniority” were the main factors in men getting work. Of course the “hiring hall” system would put an end to the stevedore graft machine, and Ryan wanted no part of that.

Ryan’s west coast trip was a complete failure. In each ILA location he visited, his recommendations were shot down, emphatically. The president of the Tacoma ILA local announced to the press, “No body of men can be expected to agree to their own self destruction.”

Things were so bad for Ryan in San Francisco, there were physical confrontations in the streets, between the west coast strikers, the strikebreakers Ryan had brought in from the east coast, and the local police. The riots were so violent, the National Guard was called in to end the disturbances.

Chalk that up as another loss for Ryan.

When Ryan returned home to the Port of New York, he was not a happy camper. He denounced his west coast opponents as “malcontents” and “communists,”and he strove to become even more diligent in exercising his absolute power over the New York ILA. One of Ryan’s most effective tools in keeping his men in line was the fact that he was able to issue union charters to whomever he saw fit. The men who received these charters were then able to form their own Union Locals. After these Locals were created, the individual local bosses would kick back a substantial part of the member’s dues to the Joseph P. Ryan Retirement Fund, of which, of course, there were no written records.

One such Local that Ryan had in his back pocket was Local 824, which was run by Ryan crony Harold Bowers. Local 824 was particularly prestigious and quite profitable because it presided over the Hells Kitchen piers, where luxury liners like the Queen Mary and the Queen Elizabeth were docked. Local 824 soon became known as the “Pistol Local” because it was almost completely comprised of Irish gangsters who had long criminal records. Local 824’s boss Bowers, an ex-con, had a criminal record as long as a giraffe’s neck. Bowers had been arrested for numerous crimes, including robbery, possession of a gun, grand larceny (twice), and congregating with known criminals. Bowers was also suspected in dozens of waterfront murders, but no murder charge could ever be pinned on him.

Harold’s cousin Mickey, as murderous a bloke as Harold, was also instrumental in running Local 824. Mickey was a suspect in the murder of Tommy Gleason, an insurgent in Local 824, who tried to wrest control of Local 824 from the Bowers family. Gleason was filled with lead while he was visiting a deceased pal in a Tenth Avenue funeral parlor. Mickey Bowers was suspected of Gleason’s murder, and he was brought in for questioning. However, with no concrete evidence, Mickey Bowers was released. There is no record of the Gleason murder having been solved, and it is not clear if Gleason was laid out in the same funeral parlor in which he had been shot.

In 1951, Ryan began losing control of the ILA, when his men did something they had never done before: they spat in the face of Ryan and his tyrannical leadership by going on strike. With over thirty thousand men involved (without pay of course), the strike lasted twenty five days. Due to the strike, 118 piers were shut down, and millions of dollars were lost by hundreds of companies, who needed their goods unloaded on the docks.

The leader of this strike was not a longshoreman, but a priest named Father John Corridan. The
son of a County Kerry-born policeman, Corridan was born in Manhattan’s Harlem. In 1928, Corridan graduated from Manhattan’s prestigious Regis High School. After completion of his seminary requirements and assignments in other parishes, in 1946, Corridan was assigned to the Xavier Institute of Industrial Relations, on West 16th Street. There Father Corridan met many longshoremen who told him of the woes they suffered at the hands of men like Ryan and the Bowers cousins.

Being a street kid himself, the chain-smoking, fast-talking priest decided to do something about the abominations that were transpiring on the waterfront. Corridan teamed up with New York Sun writer Malcolm Johnson to write a series of articles entitled “Crime on the Waterfront.” These articles spurred writer Bud Schulberg to write the screenplay for the Academy Award winning movie “On the Waterfront, which starred Marlon Brandon and Lee J. Cobb. Actor Karl Malden played the part of Father Corridan, whose name in the movie, for some reason, was changed to Father Barry.

Soon after the New York Sun articles were published, New York Governor Thomas E. Dewey announced that the state’s crime commission would open an investigation into criminal activities in the Port of New York. This investigation was called “The Waterfront Hearings.” During these hearings hundreds of men who worked on the waterfront were called in to testify (some were honest workers – others were ruthless “Dock Wallopers”). The workers mostly gave honest testimony, while the “Dock Wallopers,” mainly invoked their Fifth Amendment Rights not to incriminate themselves.

One of the men who was called in to testify at the Waterfront Hearings was a shady figure named William “Big Bill” McCormack. McCormack owned several businesses, including the U.S. Trucking Company, which worked extensively unloading on the Port of New York docks. McCormack was very close to Ryan, and it was alleged that Ryan and McCormack were, in fact, partners in several of McCormack’s businesses.

In 1950, as a result of pressure from the New York newspapers, Mayor Bill O’Dwyer, who was in the pocket of Ryan and other known gangsters, reluctantly called for a city investigation of the waterfront. The investigation became a sham, when Mayor O’Dwyer, at the urging of Joe Ryan, appointed McCormack as the chairman of a “blue-ribbon panel” to “investigate” waterfront activities. After month of a dubious investigations, funded by New York City taxpayer dollars, McCormack’s “blue-ribbon panel” concluded, “We have found that the labor situation on the waterfront of the Port of New York is generally satisfactory from the standpoint of the worker, the employer, the industry, and the government.”

That was obviously the “Big Lie.”

When McCormack was brought before the Waterfront Hearings, he was questioned about the previous testimony of the supervisor of employment for the division of parole. This supervisor had testified that although he had never met “Big Bill” McCormack, he had met with McCormack’s brother Harry many times. The purpose of these meetings was that on numerous occasions men, who were being released from prison on parole, would have the prison officials put in writing a note that said, “Mr. H.F. McCormack will make immediate arrangements for this inmate’s union membership upon his release.”

It was estimated that over 200 parolees were given “jobs” with McCormack’s Penn Stevedoring Company. Some of these jobs may have been legitimate dock work, but most ex-con’s employed by McCormack’s Penn Stevedoring Company were nothing more than thugs and leg breakers, and sometimes murderers for the union.

When “Big Bill” McCormack was asked at the Waterfront Hearings why he had employed so many men with dubious backgrounds, McCormack said, “It’s because I take a human view of employee problems. I’m human, and they’re human.”

Two of the “human” men employed by the McCormack Penn Stevedoring Company, after they were released from jail, were John “Cockeye” Dunn, and Andrew “Squint” Sheridan. Both men where eventually fried in the electric chair, after they were convicted of the murder of hiring stevedore Andy Hintz, while both killers were working for McCormack.

After McCormack’s testimony before the Waterfront Commission, the New York Herald Tribune wrote, “Mr. McCormack’s activities on behalf of the longshoreman’s union suggest that he has been pulling the strings for Joseph P. Ryan for many years, and may, in fact, be a more powerful figure on the waterfront than the Boss (Ryan) himself.”

Joseph P. Ryan was the 209th and final witness before the crime commission’s Waterfront Hearings. After one day of brutal cross examination, it was clear Ryan’s days were over as Joe “The Boss” of the Port of New York. Under grueling testimony, Ryan was forced to admit that he appointed many convicted felons like Harold Bowers to prominent positions in the ILA. Ryan claimed no knowledge of the fact that 30% of the union officials he personally appointed had criminal records. Ryan also testified he had no idea that more than 45 IRA Locals in the Port of New York kept no financial records, and that his hand-picked bosses had frequently given themselves raises, without these raises being ratified by the voting members of the Locals.

However, the final nail in Ryan’s coffin was inserted when it came to light that Ryan had misused more than $50,000 from the ILA’s Anti-Communist Fund for his own personal use. Instead of scouring the docks looking for communist activities, Ryan used this money for grand dinners for himself and his cronies at places like the Stork Club, repairs to his Cadillac, and to purchase the expensive clothes that Ryan wore. Ryan also had the gall to use Anti-Communist Funds to go on a cruise to Guatemala.

Still, Ryan would not give up his control of the New York Waterfront without a fight. In 1953, the American Federation of Labor decided to expel the ILA from it’s membership. AF of L President George Meany said, “We’ve given up all hope that the officers or members of that union will reform it. We’ve given up hope that the ILA will ever live up to the rules, standards, and ethics of a decent trade union.”

After hearing what Meany had to say, Ryan gritted his teeth and growled, “Then we’ll hold on to what we have.”

However, Ryan’s hubris lasted only for a short time. In order for Meany to allow the ILA to remain part of the American Federation of Labor, Meany insisted that Ryan step down from the post that Ryan had held for 26 years. Ryan had no choice but to comply.

Ryan’s travails were not over with yet. In 1954, after being convicted of violations of The Labor Management Relations Act (Taft-Hartly Act), Ryan was sentenced to 6 months in prison and a $2500 fine. Ryan appealed his conviction.

However, on July 1, 1955, the United States Court of Appeals Second Circuit denied Ryan’s appeal, saying, “Defendant-Appellant, Joseph P. Ryan, President of the International Longshoremen’s Association (hereafter called ILA) was indicted, on three counts, in that, on three separate occasions, he unlawfully, willfully and knowingly received sums in the aggregate of $2,500, from corporations employing members of the ILA. The judge, holding defendant guilty on all counts, sentenced him to imprisonment for six months on each count (the sentences to run concurrently) and fined him $2,500. As my view is not to prevail, I shall not discuss the other objections that the accused raises, except to say that I have considered them, and that they have not convinced me that any error was committed that would justify a reversal. I would affirm the conviction.”

Ryan did his six months in the can. Then he disappeared, never to be heard from on the waterfront again.