Medford
Tribune
Second Section
MEDFORD, OREGON, THURSDAY, FEBRUARY 16, 1950
Pages 1-6
Old Capone Gang, Frank Costello Run
Nationwide Rackets, Crime Parley Told
Washington. Feb. 18 U.R)
The mayor of New Orleans said
today that the old Capone gang
and Frank Costello of New York
controlled nation-wide gambling
rackets with an annual take that
may total $10 billion.
Mayor De Lesseps S. Morrison,
spokesman for the American Mu
nicipal association, told Attorney
General J. Howard McGrath's
crime conference the Capone and
Costello organizations are the
two major "criminal syndicates"
operating in America.
In a prepared speech which
included an 11-point program
recommended by the association
for a fedoral-state-local attack on
organized crime Morrison said:
Key To Business
1. The Continental Press serv
ice is the key to a betting busi
ness with an annual take of
$3 billion to $8 billion.
2. A slot machine syndicate
"controlled by Frank Costello"
has an annual take of $1 billion
to $2 billion, plus an unknown
income from allied activities.
"There is an abundant fund of
facts which point to control of
this (Continental) wire service by
the old Capone gang," Morrison
said. "We have good reasons to
believe that the slot machine
syndicate is controlled by Frank
Costello.
"The shy and retiring czar of
the slot machine racket always
understates his interest in rack
ets and government in his pub
lic denials of the facts about his
potency and influence."
300 Cities Served
He said that more than 300
cities are served by Continent
al's 16,000 miles of leased wire.
Morrison said that Costello
told a federal grand jury some
years ago that he moved his
New York slot machine opera'
tlons to New Orleans in 1836.
"He said that he sent down
'Dandy' Phil Kastel, ex-convict
and one-time associate of Arnold
Rothstein, to incorporate and run
the business," Morrison said. 'To
day he (Kastel) lives and oper
ates in Jefferson parish above
New Orleans outside our juris
diction." In recent years, Morrison said,
Kastel followed other "recog
nized techniques" of the Costello
syndicate by entering allied
fields. He said Kastel built the
luxurious Beverly club gam-
Springfield Merchant
Seeks Congress Seat
Eugene, Feb. 16 Walter
Swanson. a merchant in the
Glenwood district of Springfield,
said this week that he will file
for the democratic nomination
for congressional representative
fr6m the fourth district. He is
first to announce his intention
of seeking the democratic nom
ination. The post is that now held by
Harris Ellsworth, Roseburg re
publican. Swanson is a graduate of Ore
gon State college and the Uni
versity of Oregon. He is operator
of a farm and home store, and is
30 years of age. In making his
announcement, he said he has
"no fear of the republican whis
per and smear campaign of
bogey-man tales of our entering
into a socialistic state.
"If we enter into a socialis
tic state," he said, "the repub
licans will drive us to it."
DISTINCTIVE
Draw Draperies
WE MAKE THEM ,
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Wakefield Drapery
2nd Floor Medford Furniture, 6th & Bartlett, Ph. 2-6010
z:
bling house in Jefferson parish,
and financed bar and tavern op
erators at interest rates lower
than those of banks with the un
derstanding such places "must
install their machines.
Citiienahip Questioned
He said the charter of the club
registered as its agents, Kastel
and Carlos Marcello, "local ex
convict and syndicate man." He
questioned Costello's continued
enjoyment of naturalized citi
zenship and charged the New
Yorker with perjury when
swearing to his final papers in
1926 that he had not violated
any law.
". . . It is our understanding
that he was at that time the na
tion's top rum-ruunner," Mor
rison said.
The mayor said that Dudley
Geigerman, Costello's brother-in-law,
was manager of the slot
machine company as late as
1947.
Morrison said that the slot ma
chine -company, now known as
the Louisiana Mint company,
owns "most of the 8.000 gam
bling devices for which the bu
reau of internal revenue issued
$100 tax stamps in Louisiana last
year.
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Lots For a Little
Employment Mounts
Throughout Oregon
Salem. Ore.. Feb. 16 U.R)
Employment is on the increase
in Oregon, with thousands of
workers going back to their
jobs throughout the state as re
sult of recent moderating tem
peratures, the state unemploy
ment compensation commission
reported today.
Most optimistic reports on the
early spring pick-up came from
lumber and logging districts of
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Soldier Of Fortune
May See Change
In War Regalia
Washington, Feb. 16 (U.R)
The army today hinted at the
soldier of the future world:
Wear a nylon helmet instead
of the old tin hat.
Encase himself in plastic body
armor.
Be invisible to the infra-red
gadgets that can see in the dark.
Col. J. E. Finks, army research
chief, told a house appropria
tions subcommittee in testimony
published today that all those
experiments are in the testing
stage.
Liqhter Helmet
The helmet would be lighter
and probably cheaper than the
metal top piece that gave head
aches to our troops in two world
wars, Finks said. It Is of com
pressed nylon fiber as hard as
metal.
Finks said another army pro
ject is a program to "develop
body armor items that nave in
creased ballistic protection, com
fort, and yet are light in
weight."
The army also is experiment
ing with dyes which could make
clothing invisible to sensitive in
fra-red Instruments wmcn en
able snipers to pick off men in
the dark.
The army indicated the old
army isn't dead yet. It said it
still needs money for 800 hom
ing pigeons and new funds to
buy 97 mules and 23 dogs.
Jersey Club Meet
Held At Ashland
The Rogue River Jersey Cattle
club held its regular monthly
potluck dinner and business
meeting at the E. B. Payer home
in Ashland, February 12. A talk
on "Importance of advertising
milk products and stressing their
nutritive value was given Dy
Earl Jossy and a review of the
annual state meeting of the Jer
sey Cattle club was heard.
Frank Schutzwhol was nom
inated by the local club as a
candidate for the position of dis
trict director to assist the state
fieldman for the Oregon Jersey
Cattle club.
Attending were Mr. and Mrs.
Lewis Miller. Mr. and Mrs. Frank
Schutzwhol. Mr. and Mrs. Phil
Sparling, Bud Miller. Merrill
Miller, Mr. and Mrs. H. L. Mc
Colm and daughter, Betty, Mr
and Mrs. John Reinhart and Bill
Sappington of Josephine county
Mr. and Mrs. Delbert Mongold
and Sally and Larry, Mr. and
Mrs. Clifford Moore and sou,
Rex, Mr. and Mrs. Earl Jossy,
Mr. and Mrs. R. E. Van Deusen,
Mr. and Mrs. Jessie Lydiard,
and Richard Wyant of Jackson
county.
Salem. Ore.. Feb. 16 (U.R)
Robert G. Davis of Roseburg
filed his candidacy Tuesday for
district attorney of Douglas
county.
western Oregon, the commission
noted. The re-opening of many
large construction jobs also
shared responsibility for the
first upward swing in eniDlov-
ment since the holidays.
Initial claims, denoting lay
offs, dropped from 11,880 to
,ooo me iirsi ween oi reoruary.
And several large offices in
cluding Astoria, Coos Bay, Eu
gene and Grants Pass reported
fewer requests for weekly com
pensation. Nearly every office on
the western side of the Cascades
predicted quick return of sea
sonal operations, mainly because
of a good demand for lumber and
many postponed building jobs.
In Eugene, center of the doug
last fir industry, claims dropped
from 600 In one week, with sev
eral mills and logging outfits
resuming activities. Three big
lumber and plywood mills re
opened In the Lebanon area. De
spite a shortage of logs, now
being supplied on a day-by-day
basis where possible, Grants
Pass reported 250 men back at
work and more being called.
Activity On Coast
Coastal offices were unani
mous in reporting increased ac
tivity even with bad roads and
lingering snow that handicapped
loggers in the foothills. In the
Toledo area several mills and
logging outfits were working
again. Construction men were
expected to start on several new
schools soon.
Nearly 400 fewer claims came
from Coos Bay, where some
large employers were re-hiring
workers. A similar report was
issued at Astoria. Tillamook also
joined the back-to-work move
ment. Increased construction opera
tions brightened employment
outlooks at Salem and Hillsboro.
Oregon City also reported many
workers reluming to activities
interrupted by the unprecedent
ed January weather.
CRYSTAL BALL CLOUDED
Atlanta (U.R) Fortune tellers
in Albany will have to gaze into
their crystal balls overtime to
find out where they can get some
extra money. The city council
decided to hike the license fees
for oracles from $100 to $500
a year.
Hamtramck, Mich. U.R) Af
ter a two-month search, police
found Charles Muir'a stolen car
in the police pound, where it had
been all the time.
Juneau, Alaska U.R) Mrt.
Frances Longley, 38, of Nome,
has been appointed by Gov. Er
nest Gruening to the public wel
fare board. She was the first
Eskimo ever graduated from a
Nome high school. She received
her diploma in 1930.
Mt. Shasta, Cal., Feb. 19 (U.R)
Mrs. Hazel Drew, 44, Eugene,
Ore., was reported in critical
condition in Mt. Shasta hospital
today as result of injuries suf
fered in an automobile accident.
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"There were 13,599 employees who were with the company in a non
management capacity in 1939, and who were still with us in 1949.... It
is noteworthy that 4,880 or 36 per cent of these employees had prog
ressed from the non-management into management forces, which em
phasizes the opportunity for advancement in the business."
from the Annual Report for 1943 of The Pacific Telephone and Telegraph Company.
The record of this ten -year period proves again that the op
portunity to advance is indeed unusual in this up-from-the-ranks
industry, More than one out of three went ahead to
management positions. All had the chance to progress. This
was true of women as well as of men.
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46
of the men
promoted
in 10 years
-Zi.:.. ft r -
of the women
promoted
in 10 years
There is big opportunity for advancement in the telephone
service. Every foreman, chief operator, wire chief, superintend
ent and every officer of the company came up through the ranks.
The future holds even greater promise as we grow and expand
with the est.
The PaCifiC Telephone and Tefegraph Company