1936

A single penny got Los Angeles store owner Ethel Jamison convicted.

One day at her shop, Police Officer James Mulligan placed a penny in the slot machine, pulled the lever, received a penny premium and cashed it with her.

He arrested her, as slot machines were illegal in California, and the case went to trial. The jury found her guilty of possessing a gambling device. She was punished with a 30-day suspended jail sentence.

Source: Reno Evening Gazette (Nev.), “Transaction of Lonely Cent Gets Woman Jail Sentence,” Oct. 17, 1936.

Joseph “Doc” Stacher (born Gdale Oistaczer, 1902-1977) was a “a genial, shrewd, witty gent” who could be “homicidally tough,” wrote “Voice of Broadway” columnist Jack O’Brian (Monroe News-Star, March 17, 1977). Closely aligned with fellow Jewish Mobsters, Meyer Lansky and Abner “Longie” Zwillman, this immigrant had “galvanic” power and extreme wealth.

Here are some facts about Stacher that provide insight into the man and his life in organized crime.

1) Stacher was involved in various gambling businesses in North and South America, from slot machine distribution and bookmaking to casino ownership and management.

2) Throughout the years Stacher owned various pieces of real estate and commercial enterprises. His many assets included two homes, one in Beverly Hills, California and the other in Orange, New Jersey; nightclubs in California; hotel-casinos in Las Vegas, Nevada and New York (oftentimes, as a silent partner); and assorted other businesses. He even owned a hidden stake in Columbia Pictures. With Zwillman, Stacher owned Runyon Sales Co., which manufactured and distributed automatic coin-operated machines.

“[Stacher] was worth many millions (some experts’ estimates say he still can put his canny hands on upwards of $100 million at any given, or taken, moment,” wrote O’Brian (Monroe News-Star, 1971).

3) Between ages 22 and 26, while an active member of the Bugs and Meyer Mob during the 1920s, Stacher racked up a slew of arrests and charges:

1924, November 26:     breaking, entering and larceny
1926, April 21:               assault and battery
1926, August 18:           assault and battery
1927, June 7:                atrocious assault and battery
1927, July 11:                atrocious assault and battery
1927, August 15:           robbery
1927, December 4:       interfering with an officer guarding a still for federal authorities
1927, December 9:       atrocious assault and battery
1928, May 29:               an “open charge,” which later was dismissed

4) At Lansky’s request, Stacher organized a 1931 meeting, at the Franconia Hotel, of all of the top New York-area Jewish mobsters. They decided, at the conference, to join forces with the U.S.-based Italian Mafia. Charles “Lucky” Luciano, representing the Italian Mafioso, agreed, and the National Crime Syndicate was formed.

5) Stacher first got in tax trouble in 1952, when the Internal Revenue Bureau (IRB) claimed he owed $340,000 (about $3.6 million today) in unpaid taxes for the nine years between 1933 and 1941. After the IRB issued liens against him, Stacher paid the amount in full.

6) In the same year, a federal grand jury in New York indicted Stacher on charges of illegal gambling and conspiracy in connection with the Arrowhead Inn (which he’d owned with Lansky during the 1920s). After successfully fighting extradition from Nevada for a year, Stacher eventually returned to The Empire State in 1953 and pleaded guilty to 20 charges. He was fined $10,000 ($104,000 today) and given a one-year suspended jail sentence.

7) The U.S. Immigration and Naturalization Service (INS) revoked Stacher’s citizenship in 1956 and sought to deport him. This was because he hadn’t not disclosed his criminal record on his citizenship application 26 years earlier. The INS could not return Stacher to his homeland (what now is Poland), however, because federal law forbade deportations to Communist countries.

8) Stacher pleaded guilty, in 1964, to two counts of evading payment of federal taxes. He was fined $10,000 and given the choice of going to prison or leaving the country. He opted for the latter and sought refuge in Israel. Its Law of Return, passed in 1950, granted every Jew the right to immigrate there and become an Israeli citizen.

9) A rabbi/member of the Knesset, or Israeli parliament, defrauded Stacher. Worried that Israel would refuse him citizenship, Stacher asked friend Frank Sinatra to seek help from this politician who owed the crooner a favor. Also, Stacher donated to the same man $100,000 ($897,000 today) to be used for charitable purposes. The rabbi/Knesset member, though, used the money to build the Central Hotel in Jerusalem.

“Outraged at being ripped off, Stacher sued in a court case that drew headlines and laughs throughout the country,” reported Mafia Stories. “Israelis were amused that such a giant figure in American crime could be so taken by a meek-looking rabbi.”

Eventually, Stacher recouped the money.

10) Stacher passed away in a Munich, West Germany, hotel room on February 28, 1977, reportedly from a heart attack, and his body was transported back to Israel. There, only eight people, all men, attended his funeral. He was buried secretly and the name on his grave was changed to conceal his interment site.

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Sources

Martin Mooney

1935-1936

In about mid-December 1935, New York newspaper reporter Martin Mooney (1896-1967) faced serving his jail sentence during the upcoming holidays. His offense? Contempt of court for refusing to reveal to the local grand jurors the sources he’d used in an exposé on illegal gambling in New York City.

“It won’t be so bad if I have to go to jail before Christmas,” Mooney said. “Just think of all the presents I won’t have to buy or all the parties I won’t have to go to then.”

Journalist Stands Firm

One of the unlawful activities the grand jury had been investigating earlier that year was operating numbers, or policy,* which violated New York state’s gambling and lottery laws.

Mooney, a reporter for the New York American,** a William Randolph Hearst-owned morning newspaper, wrote a series of articles alleging that despite the grand jury’s efforts to curb the local numbers racket, it continued to prosper in the city. In other words, the citizen group’s work was ineffective. To make the case, Mooney used confidential sources, men continuing to run these games, quoting them and describing their enterprises.  

Consequently, the grand jury began looking into the validity of the claims in Mooney’s exposé. The jurors called the reporter as a witness during a related hearing, and asked him to provide the names and addresses of the people and places he’d mentioned in his pieces. The journalist refused, noting his sources were confidential and privileged.

Ethically, that was true. Legally, though, it wasn’t. The state of New York didn’t have any law on the books that protected reporters from having to reveal their sources.

The Bad Guy

Not surprisingly, in May, Mooney was sentenced to 30 days in jail and fined $250 (about $5,000 today) for contempt of court.

“The only reason I am being thrown into jail is because I refuse to head a committee of my colleagues to supply Information to the grand jury,” the reporter told the court. “Had I accepted that offer, I know very well I would have been purged” (Syracuse Herald, May 17, 1935).

The only conviction to come out of the grand jury’s inquiry into the numbers racket was of Mooney, the messenger instead of any of the perpetrators.

“I feel it is a great injustice that an innocent newspaper man should be the great prize corralled by this great grand jury in its lone investigation,” Mooney said. “There is no court in this land which holds me in the contempt in which I hold this grand jury.”

Fighting For Change

Mooney and his attorney James D.C. Murray took the case all the way up to New York’s highest court, the Court of Appeals. Before each legal body along the way, Murray argued the privilege afforded physician and patient, attorney and client, should be given to reporters and their confidential sources. Every court’s ruling was the same: Mooney had to cough up his sources or carry out his punishment.

“The decision was based on the law of the state, and that law today prohibits newspapers from protecting sources of confidential information,” noted a Syracuse Herald op-ed piece (Feb. 1, 1936).

Further, the Court of Appeals noted that a decision to enact a shield law for reporters was under the purview of lawmakers not the courts. (Coincidentally, such a bill, calling for reporter immunity, had been introduced in the New York State Legislature in its previous session but had been killed in committee.)

The Epilogue

Following the New York Court of Appeals‘ ruling in January 1936, Mooney served his sentence in the Queens County Jail. (Presumably, he paid the fine as well.)

The year before, at about age 39, he abandoned journalism and pursued screenwriting, in which he would be successful, too. He would base many of his screenplays on the underworld about which he’d written as a reporter. The movies for which he’s best known, according to IMDB, are “Mr. Celebrity” (1941), “Men of San Quentin” (1942), “Silent Witness” (1943), “The Great Mike” (1944) and “Detour” (1945).

As for affording journalists the right to keep their confidential sources, well, confidential, New York wouldn’t enact a law in this regard until 1970, and when it did, the privilege only would apply to certain journalists, ones with staff positions at newspapers, magazines and TV stations.

Mooney’s story, however, spurred quicker action in other states: California (1935), Kentucky (1936), Arkansas (1936), Arizona (1937), Pennsylvania (1937), Indiana (1941), Ohio (1941) and Montana (1943).

To date, the U.S. doesn’t have a federal shield law.

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* Numbers, or policy, of the past was lottery-type games in which players bet on a number they predicted would appear in a specific source on a specific future day and time. Originally, operators generated the winning numbers through lottery drawings but that evolved into them using baseball scores, parimutuel totals, cattle receipts and other combinations of figures that routinely appeared in a local newspaper. Because players could wager nickels and dimes, even those who couldn’t afford even part of a lottery ticket could play numbers. Therefore, the game became prevalent in poor U.S. neighborhoods.

** The New York American was published between 1902 and 1937, when Hearst merged it with its afternoon newspaper, the New York Evening Journal, and the combined papers became the New York Journal-American. The Journal ceased publication in 1966.

Sources