THE JEWISH HISTORY SERIES - Lesson
#8
Arnold Rothstein, King of the Jews
(1882-1928)
Arnold Rothstein's name is virtually
unknown today, but in his time he was known far and wide as, among other things,
The King of the Jews, The King of New York, A. R., Mr. Big, The Fixer, The Big
Bankroll, The Man Uptown, and The Brain.
Arnold Rothstein was arguably the most
personally successful professional criminal in American history, and given
American history, that's saying a lot. He made millions of dollars in his
lifetime, and that's 1920s dollars.
He was the inspiration for the
character of Meyer Wolfsheim in The Great Gatsby, and Nathan Detroit in
Guys and Dolls. He was rumored at the time and is now generally accepted
by historians to be the mastermind of the "Black Sox" scandal, the fixing of the
1919 World Series by professional gamblers. He financed and had some interest in
virtually ever major bootlegging operation during Prohibition, with the
exception of the bloody gangster scene in Chicago, which was too wild for even
him to control. He is the father of modern narcotics trafficking, and in some
chroniclers' opinion the real father of the Cosa Nostra despite not being
Italian. Arnold Rothstein was gambling, and Arnold Rothstein was money. He was
Mr. Broadway and had his own booth at Lindy’s restaurant in Manhattan where he
held court. He was quite possibly the most completely amoral human being who
ever lived.
Arnold Rothstein was born in a
brownstone on East 47th Street in Manhattan in 1882, the second of five
children. His parents, Abraham and Esther, were middle class when he was born
and his father grew fairly wealthy on his own later in life through "legitimate"
business.
He wanted all his sons to be rabbis,
but apparently old Abe noticed from a very young age that Arnold was a weird
kid. Young Arnold spent many hours alone in cellars and closets choosing dark
places in which to play. At the age of three he had already taken a disliking to
his older brother Harry. One night Abraham entered the boy’s bedroom to find
Arnold standing over the sleeping Harry with a knife in his hand. When the
father pleaded for an explanation, Arnold simply replied, "I hate Harry."
Later on his parents found that they
could not trust Arnold with small amounts of money to go to the store; their son
would come back and sullenly tell them he had lost the money pitching pennies or
playing craps with bigger kids down the street. What was worse was when old Abe
found out that more often than not, his son was actually WINNING--even in his
early days Arnold was incredibly lucky at gambling--but he lied about having
lost his parents' dime or quarter bread and milk money so he could keep that
too.
Years later Rothstein told a
psychologist that when he was young his mother took Harry and his younger
sister, Ethel, on an extended trip to San Francisco to visit her relatives. The
first night she was gone Abraham found Arnold hidden away in a closet weeping
uncontrollably. "You hate me," cried Arnold. "She hates me and you hate me, but
you all love Harry. Nobody loves me." It was the only time Rothstein showed any
deep emotion during his childhood. Well, jeez. They didn't love him because he
was a rotten kid who stole and lied, but that presumably never occurred to the
boy.
Arnold fell two years behind in grade
school and found himself a classmate of his younger brother Edgar. Edgar would
later recall, "I’d do all the homework and Arnold would copy it and remember it.
Except in arithmetic. Arnold did all the arithmetic. He loved to play with
numbers." When Harry Rothstein was thirteen he informed his parents that he
wanted to study to become a rabbi. This decision delighted Abraham. Arnold, who
had shunned his religious studies even more than his regular schooling, was
chided by his father, "You should be proud of being a Jew."
A defiant Arnold responded, "Who cares
about that stuff? This is America, not Jerusalem. I’m an American! Let Harry be
a Jew!" For someone who would someday be called "The King of the Jews," this was
pretty ironic.
Arnold quit school for good in 1898,
went onto the streets, and never looked back. So far as is known, he never in
his life held a legitimate job. He began shooting dice and playing the Jewish
card game stuss for a living, almost always rising a winner. Arnold frequented
pool halls, which in the early days of their existence were places where bets
were placed and lotteries played. As gamblers waited around for the results
there was usually a billiards table to occupy their time. Rothstein earned a
reputation as pool shark.
Rothstein became a regular at
Hammerstein's Victoria Theatre where a craps game was always in action every
Monday. The popular game drew the likes of Monk Eastman and Herman "Beansie"
Rosenthal. (See Jewish History Series passim, The Bowery Gorilla and
Croaking Beansie.) He soon began lending money to several of the players
and launched a lifelong career as a loan shark. For every four dollars he lent
he collected five in return. If any problems arose in collecting the loans,
Rothstein would turn to his newly found friend Monk Eastman. The bullet-headed
thug, with a broken nose and cauliflower ears, met little resistance when trying
to retrieve payments due Rothstein.
Building a reputation as a gambler and
shylock while still only sixteen, Rothstein began to cultivate a friendship with
Timothy D. Sullivan, Tammany Hall's East Side political boss. Sullivan, known as
"Big Tim," gained his powerful political standing by delivering the Democratic
vote on Election Day. In return, Sullivan looked out for the people in his
district, delivering coal and food for the needy, and helping others get jobs or
legal assistance when necessary. Rothstein became a regular at Sullivan's
headquarters. He ran errands for Big Tim and served as a Yiddish translator for
Sullivan's Jewish constituents. Sullivan soon realized that Rothstein was a
young man with a future.
With Big Tim's backing, in 1902
Rothstein began working on his own. He booked bets on baseball games, elections,
horse races and prizefights. In addition, he gambled on his own – shooting
craps, playing pool and participating in poker games. Rothstein had a simple
philosophy, "Look out for Number One. If you don't, no one else will. If a man
is dumb, someone is going to get the best of him, so why not you? If you don't,
you're as dumb as he is."
Rothstein's new home was the Broadway
Central Hotel and his new "profession" was that of a cigar salesman, which gave
him an official reason for hanging around gambling houses, hotels and saloons.
During this period Rothstein developed his lifelong habit of carrying a big
bankroll. He believed that by carrying a large sum of money, and flashing it,
that it helped gauge his prominence. "Money talks," Rothstein told a reporter.
"The more money the louder it talks."
In 1907, he met a 19 year-old Irish
Catholic girl named Carolyn Greene. (As mentioned before, for some reason Jewish
criminals always gravitate to Irish or at least Gentile women. Rothstein is
never known to have had a single Jewish wife or mistress; his relationship with
Fanny Brice was purely financial and narcotics-related.) He courted Carolyn
through the simple and direct method: he took her to dinner and spread his money
out over the table. "This is going to make me important," he told her. "I know
how much money means. I'm going to have more and more of it. Nothing is going to
stop me."
She was convinced and she married
Rothstein in 1909. His long-suffering father Abraham cast him out of the family
and sat shiva for him, making him legally dead according to Jewish religious
law. Lying, stealing, gambling, and maybe a little maiming and murder on the
side was fine, so long as it was over money. Marry a Gentile and you're done
here, kiddo.
Rothstein's idea of settling down was
to diversify his gambling and become "the house," opening a series of very
high-class gambling joints with plush decor, restaurants with haute cuisine, and
evening dress required for all the high rollers. He started with a brownstone on
West 46th Street, outfitted with roulette wheels, dice pits, faro and poker
tables. Over the years Rothstein moved way upmarket, eventually managing several
of the most high-end casinos in the country out of huge mansions he bought in
Long Island and Saratoga. His clientele included Tammany Hall politicians,
governors and U.S. Senators, silent film stars, writers like F. Scott
Fitzgerald, Damon Runyon, Eugene O'Neill and the Bohemian crowd from Greenwich
Village, captains of industry, drunken flappers and jazz babies from the East
Coast's social register, anyone with money the throw away. Plus, of course, a
leavening of gun-toting gangsters like Legs Diamond, Bugsy Siegel, Meyer Lansky,
Owney Madden, Lucky Luciano, and Dutch Schultz. Rothstein took advantage of what
he termed "snob appeal" for his gambling den. "People like to think they're
better than other people," Rothstein once told the writer Damon Runyon. "As long
as they're willing to pay to prove it, I'm willing to let them."
In his adult years Rothstein routinely
carried as much as $25,000 in a roll in his pocket, which in those days was more
money than many working-class families ever saw in their lives. No one ever
tried to rob him, knowing if they did they'd have to deal with some of the
King's associates, charming gents like Monk Eastman and later on Legs Diamond,
Owney "Killer" Madden, and the psychopathic Bugsy Siegel.
The one time someone did try to stick
him up, a down-and-out former schoolteacher named Will Davis who thought he had
a foolproof betting system for horse racing and needed a stake, Rothstein gently
talked him out of it. When he wanted to, Rothstein could charm the birds out of
the trees. More than one observer described Rothstein's personal magnetism with
his marks as "like a bird with a snake." He took away Davis's gun, took him home
and gave him a meal, listened to his system which sounded like it might work,
took him onto the payroll briefly, and made over $100,000 at the track before
firing Davis and putting him on a train back to California, after having him
beaten bloody by some of Diamond's gangsters. But he did stick a $50 bill in
Davis' pocket as the train was pulling out.
En passant, ripping off a Gentile in
some especially slick and egregious manner like this is called by the Jews a
korban. Rothstein's many korbans were one of the things that
contributed to his elevated reputation among his people. But he could be just as
ruthless with his fellow Jews. When his childhood friend Herman Rosenthal (see
Croaking Beansie) finally realized that his big mouth was about to get
him whacked, he ran to his old buddy Rothstein on July 5th, 1912 and begged for
$500 to get out of town. "Forget it, Beansie," said Rothstein. "You waited too
late. You're not worth $500 to anybody any more." Rosenthal was murdered in
front of the Hotel Metropole that same night by three Jews and an Italian, on
orders from a Jewish-born corrupt police lieutenant, Charles
Becker.
Becker and his hired guns were
eventually fried in the electric chair, and to make a long story short,
Rothstein stepped into Becker's place as the main liaison between New York
City's corrupt political establishment and the underworld. From then on he had
it made. Rothstein took cash for everything he did. Soon he and Carolyn moved to
an apartment at the corner of Broadway and 52nd Street. Their new home had eight
rooms and two baths, as well as separate quarters for a butler and a maid.
With Tammany Hall in his corner,
Rothstein could get away with murder, ar attempted murder, anyway. On January
19th, 1919 Rothstein was rolling the bones in a floating crap game at 301 West
57th Street. Most of Rothstein's games were "protected," but every now and then
snafus occurred, and the police actually raided this one. As they were smashing
in the door, to everyone's amazement Rothstein, who was usually left the rough
stuff to his gangster buddies, pulled out a revolver and opened fire, wounding
three police officers, albeit slightly. Rothstein was arrested with the smoking
gun in his hands, literally. It looked like an open and shut case.
WRONG...
Rothstein was booked for assault with a
deadly weapon, then provided bail money for all the gamblers who had been
arrested. An overzealous inspector, Dominic Henry, having somehow acquired the
peculiar notion that Jews should obey the law like everyone else and refrain
from taking pot shots at the cops, refused to let the matter quietly go away and
pushed for an indictment, although it took him six months and the intervention
of the U. S. Attorney's office for the District of New York to get one.
When the case was called Rothstein’s
attorney simply got up and requested a dismissal, which the judge readily agreed
to. Scuttlebutt was that Rothstein had paid $32,000 to get the case quashed.
Rothstein then used his political contacts to get Inspector Henry indicted for
perjury, convicted and sentenced to five years in prison, as a lesson to any
other stroppy goyim who might get ideas above their station.
Arnold Rothstein's most famous exploit,
one which was later immortalized by Hollywood in the movie Eight Men Out,
was the fixing of the 1919 World Series. Rothstein biographer Leo Katcher
claims, "He did not fix the Series. Rothstein’s name, his reputation, and his
reputed wealth were all used to influence the crooked baseball players. But
Rothstein, knowing this, kept apart from the actual fix. He just let it happen."
Uh..okay, Leo. If you say so.
The series between the Chicago White
Sox and the Cincinnati Reds was won by the underdog Cincinnati team five games
to three (at the time the series was best of nine). Eight players from the
Chicago team conspired to throw the games, earning themselves entry into the
Baseball Hall of Infamy as the "Black Sox." Their throwing of the games were so
clumsy, though, that there was immediate suspicion aroused. After a
screaming-headline investigation, all eight players involved were banned from
playing baseball for life, and a new office of Baseball Commissioner was
created. Ban Johnson, the president of the American League, was certain of
Rothstein’s participation in the fix and openly said so. To which Rothstein
responded, "My only connection was to refuse to do business with some men who
said they could fix it…I intend to sue Ban Johnson for libel…" Needless to say,
he never did.
Up until 1920, Rothstein was a highly
successful gambler, corrupt political fixer and criminal who also dabbled in
such illicit enterprises as securities fraud, fencing stolen bonds, diamond
smuggling, and other such white collar crime. He knew and used the services of
gangsters and hit men, but only as bodyguards or on a kind of piecework basis
when there was a specific job of wet work that needed to be done, usually
collecting money for him. He was not primarily a mobster himself, but that was
about to change.
When Prohibition began on January
16, 1920, Rothstein had many of the component parts of organized crime in place.
Rothstein immediately appreciated the immense profits to be made in providing
liquor for thirsty Americans, and there is no doubt that he was responsible for
financing, systematizing and organizing the bootlegging business on the East
Coast, and thereby quite probably preventing the New York bootleg scene from
degenerating into the total blood-soaked free-for-all which occurred in places
like Chicago, St. Louis, and Kansas City. It was at this
time that Rothstein began to assemble a stable of gunmen that included men like
Diamond, Siegel, Lansky, Luciano, Jacob "Little Augie" Orgen, Lepke Buchalter,
Gurrah Shapiro, and Dutch Schultz (Arthur
Flegenheimer.)
Rothstein handled the consumption end of the illegal alcohol business, not
so much the importation. He already had massive real estate interests in New
York, and he financed many retail outlets for bootleggers, as well as becoming
the silent owner of at least half the city's speakeasies or illegal bars and
night spots. His realty firms negotiated rentals and leases and his insurance
companies insured the premises. He bankrolled many bootleggers and provided them
with trucks and drivers to transport their illegal cargo. He provided money and
manpower and political protection. He arranged corruption – for a price. And, if
things went wrong, Rothstein was ready to provide bail and attorneys. He put
crime on a corporate basis instead of the loose-knit patchwork of ethnically
based gangs living off robbery and burglary and petty street crime which existed
prior to Prohibition. In this sense, he is indeed the father of the modern
Syndicate.
As always in any form of organized
crime, Jews were prominent. One of Rothstein’s first ventures into rum running
came after a meeting with Waxey Gordon (Irving Wexler) and Detroit bootlegger
Maxie Greenberg. While in Detroit, Greenberg began smuggling in whiskey from
Canada, which he purchased largely from the Jewish Bronfman family, prominent
liquor dealers and Zionists to this day . Realizing how profitable this venture
was, Greenberg wanted to expand and needed $175,000 to do so. He traveled to New
York in hopes that through Gordon, he could obtain financing from Rothstein.
From this arose the infamous, all-Jewish Detroit and Cleveland Purple Gang, with
a fleet of rum-running boats so big it was called "The Little Jewish Navy."
Rothstein was always content to remain
a silent partner and sponsor of the bootleggers. The business was so huge and
complex that he could never hope to control it all, and he knew this. But one
illicit trade Arnold Rothstein did in fact reserve for his own personal
monopoly, and woe to the criminal who trespassed
thereon--narcotics.
It is not widely known that opium based
narcotics and cocaine were not always illegal in this country. Up until the late
'Teens dope flowed freely in this country; the first anti-drug bill, the
Harrison Act was not passed until 1916. There were nowhere near as many addicts
as there are today, but many of them were wealthy socialite types, silent film
stars such as Wallace Beery and others, and they were willing to pay top dollar
for their now illegal blow and smack. Rothstein was never involved in street
pushing; he was strictly importation and wholesale. Some of the first major drug
lords in America, whose names are virtually unknown today, were criminals
bankrolled and supervised by Rothstein, men like Harry Mather, "Dapper Dan"
Collins, Sid Stager, George Uffner, and Jacob "Yasha" Katzenberg.
Rothstein purchased the well-known
importing house Vantines as a front for his drug operation. The establishment
had a legitimate reputation and shipments arriving from China and the Orient
received only a cursory inspection. Rothstein made sure that when he got word
someone he knew was furnishing a home that Vantines received part of that
business. It was reported that Jewish songstress and comedienne Fanny Brice
ordered thousands of dollars of furnishings and bric-a-brac from Vantines to
adorn a new apartment, which she got for free after first letting Rothstein's
crew remove certain "extras" hidden away in secret compartments in the
consignments. In addition to Vantines, Rothstein purchased several antique shops
and art galleries to serve as legitimate fronts for his drug business.
In May of 1928, to Rothstein's
irritation, the newspapers detected and questioned him about a series of
meetings he held with "Captain" Alfred Loewenstein, the Belgian-born Jewish
stock swindler and war profiteer who was considered to be at that time the
richest man in the world. (see Jewish Histories passim, The Man Who Fell From
The Sky) It has been speculated that Rothstein was working with Loewenstein
on some kind of European dope network, the two fell out, and then Loewenstein
literally fell out, out the door of his private airplane thousands of feet above
the English Channel. Rothstein has been accused of having his co-religionist
whacked in this unusual manner, although there is no hard evidence for this
assertion.
But what goes around comes around, and
The King of the Jews was about to get his own ticket punched.
As big as he was, Rothstein never
gave up his personal gambling. On September 8th, 1928, Rothstein sat down in a
Manhattan hotel room for a marathon poker game which lasted until the morning of
the 10th. The other players participating in the game were
all professional gamblers and/or gangsters themselves. They included West Coast
gambler and criminal Nathan "Nigger Nate" Raymond, Alvin "Titanic" Thompson, Joe
Bernstein, and New York bookmaker and leg-breaker George McManus, who acted as
Mine Host.
"Nigger Nate" was not black himself,
but acquired his nickname because he allegedly had a sexual taste for dark meat;
he had a long record for armed robbery, labor racketeering and strike-breaking
thuggery, and suspected homicide.
"Titanic" Thompson was a Texan who wore
a ten-gallon hat and spurs even on the sidewalks of New York. He carried a
pearl-handled six-shooter and had been known to use it on suspected cheaters. He
got his nickname because he was a survivor of the sinking of the Titanic.
According to underworld legend, he and his fellow players were so engrossed
in their poker in the saloon lounge that they didn't notice the iceberg hit and
the fact that the ship was sinking until the water was lapping the tilted deck
beneath their feet, and when the others rose to make a break for it Thompson
called out, "Oh, come on, fellers, we got time for one more hand!"
George McManus was a hardened
Irish thug who was known to have several notches on his gun. These were not men
that anyone in his right mind would screw around with, but this time Rothstein
slipped badly in the character judgment department. That classic Jewish hubris
and arrogance was about to catch up with Mr. Big.
For once, Rothstein's usual luck or
skill at cards deserted him. By the end of the marathon card game, Rothstein was
a big loser. He owed Raymond $219,000, Bernstein $73,000, and Thompson $30,000.
When Rothstein walked out, without so much as signing an IOU, a couple of the
players became irritated. McManus assured the pair, "That's A. R. Hell, he's
good for it. He'll be calling you in a couple of days." But he
didn't.
A week passed and Rothstein had still
not made good. Rumors began to circulate that the game was crooked. Rothstein
confided to Nicky Arnstein, "A couple of people told me that the game was
rigged." Arnstein's advice to Rothstein was to pay the players off, "No point to
your advertising you were a sucker." The word percolated like wildfire down
Broadway: Mr. Big had welshed on a gambling debt. As sponsor of the game, by the
unwritten law of professional gamblers George McManus had stood guarantor for
all the players, and it was his responsibility to make sure all bets were
settled. As the weeks passed, the pressure began to get to McManus who began
drinking and threatening Rothstein in speakeasies for making him into a
patsy.
On the evening of November 4th, 1928,
Rothstein arrived at Lindy's restaurant on Seventh Avenue and went to his
private booth. Lindy's was Rothstein's office. He kept a regular schedule there
and several men were already waiting to see him when he walked in that night.
One of the men, Jimmy Meehan, ran the Park City Club, one of the city's biggest
gambling dens during the 1920s. Meehan operated the plush club with a bankroll
supplied by Rothstein. He warned Rothstein again to pay up; McManus was getting
dangerously angry. "I'm not afraid of some dumb Irish palooka," replied
Rothstein with a sneer. "I'm Mr. Big, remember? I pay when I feel like paying."
WRONG...
About 10:15, Rothstein received a
telephone call. After a short conversation he hung up and motioned for Meehan to
walk outside with him. "McManus wants to see me at the Park Central," Rothstein
said. He then pulled a gun out of his pocket and handed it to Meehan saying,
"Keep this for me, I will be right back." Meehan then watched Rothstein walk up
Seventh Avenue. Why Rothstein handed over his own weapon to Meehan before going
to meet a dangerous adversary like McManus, or why he didn't take some of his
own bodyguards with him, has always been a mystery. Perhaps after years of
immunity from the law and his miraculous ability to get out of any scrape,
Rothstein had indeed come to believe he was invincible and
immortal.
The exact sequence of subsequent events
has never been satisfactorily explained, although it is believed that Rothstein
did go up to McManus's room 349 in the Park Central, where he was registered as
George Richards. At 10:53 the West 47th Street police station received a call
from the manager of the hotel. Arnold Rothstein had been found lying shot on the
floor by the employee's entrance. About the same time as the shooting, a
..38-caliber revolver was thrown out of one of the windows of the hotel by
someone and bounced off the roof of a taxicab on the street; the driver turned
the gun over to the police. Rothstein was conscious when he was taken to
Polyclinic Hospital and underwent emergency surgery for the removal of a single
bullet from his belly, and for several days he lingered in agony before he died
of peritonitis and blood poisoning at age 46.
George McManus was arrested and tried
for the murder, but acquitted due to lack of evidence, and the defense's case
was helped by the fact that to give the man his due, even in his final death
throes Arnold Rothstein had held to the code of the underworld and refused to
name the man who had shot him. Rothstein's estate was almost completely looted
by his many crooked associates, and his widow Carolyn received only a few
thousand dollars in the end out of all the millions that Rothstein had
squirreled away over the years.
The King of the Jews was dead.
Sic transit gloria mundi.
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