Atlantic City Conference - The Conference

The Conference

Jewish crime Boss Meyer Lansky was married in early May 1929 and his closest underworld friends concluded that the resort town of Atlantic City, New Jersey would be an ideal place to have his honeymoon and hold the conference, allowing Lansky to mix pleasure and business, along with the rest of the Bosses. The date and place was set for the weekend of May 13–May 16, making the conference the first known underworld summit of its kind, which could be considered the first concrete move towards establishing the National Crime Syndicate that eventually controlled all major criminal activities across the United States.

The Atlantic City Conference was said to be hosted by John Torrio, Charlie "Lucky" Luciano, Frank Costello and Meyer Lansky, depending on who you ask. The old world leaders or "Mustache Petes" from New York, Giuseppe "Joe the Boss" Masseria and Salvatore Maranzano, were not invited, as well as future underworld power Joseph "Joe Bananas" Bonanno since he was Maranzano's top lieutenant at the time. The list of crime leaders who were invited to attend the conference read like a who's who of the Prohibition era and the future of organized crime. The host of the conference was powerful, Atlantic City and South Jersey crime Boss, Enoch "Nucky" Johnson, who provided the hotel accommodations, food and entertainment for all, while making a guarantee of no police interference.

Of course the largest delegation in the conference came from the New York/New Jersey area and included Bosses John "The Fox" Torrio, formerly of Chicago, Charlie "Lucky" Luciano, Frank Costello, Giuseppe "Joe Adonis" Doto and Vito Genovese, all top members of Manhattan's powerful Masseria Family, Albert "The Mad Hatter" Anastasia, Frank "Cheech" Scalise and Vincent Mangano, from the D'Aquila/Mineo Family of Manhattan, Gaetano "Tommy Brown" Lucchese, represented the Reina Family out of the Bronx, Quarico "Willie Moore" Moretti, represented the Masseria Family's Newark, New Jersey interests, Meyer "The Brain" Lansky and Benny "Bugsy" Siegel, Bosses of the Bugs and Meyer Mob, who protected liquor shipments in the New York/New Jersey areas, Louis "Lepke" Buchalter and Jacob "Gurrah" Shapiro, considered the underworld's "Rockefellers" and also known as the "Gorilla Boys", Abner "Longy" Zwillman, also representing Newark, New Jersey, Dutch Schultz, Bronx beer baron and Harlem numbers king, Owen "Owney the Killer" Madden, Boss of Manhattan's Hell's Kitchen and the Irish Combine, Frank Erickson, former Rothstein Lt., Costello associate and future bookmaking kingpin.

Chicago was represented by Alphonse "Scarface" Capone, Frank "The Enforcer" Nitti, Jake "Greasy Thumb" Guzik, Frank "Frank Cline" Rio, top members of the South Side Capone Gang and representing Mid West interests, Capone body guard and only one of two Irish gangsters present Frank McErlane of the South Side Saltis/McErlane Gang. From Philadelphia came the top Jewish Bosses, Irving "Waxey Gordon" Wexler, Harry "Nig Rosen" Stromberg, Max "Boo Boo" Hoff, Irving "Bitzy" Bitz and Charles Schwartz. From Cleveland came the "Little Jewish Navy" of Morris "Moe" Dalitz and Louis "Lou Roddy" Rothkopf, along with adopted Polizzi Family member, Leo "Charles Polizzi" Berkowitz who represented "Little Italy's", "Mayfield Road Mob". The feared Purple Gang of Detroit was represented by brothers Abe and William Joseph "Bugs Bill" Bernstein. Boston's most prominent bootlegger, Charles "King" Solomon was present, while Kansas City's "Balestrere Gang" and the "Pendergast Machine" were represented by Boss John Lazia. Delegations from Florida and Louisiana were also present at the time, which would most likely be, Luciano and Costello allies, Santo Trafficante, Sr. of Tampa and Sylvestro "Silver Dollar Sam" Carolla of New Orleans.

Two of the underworld's most powerful leaders, Giuseppe "Joe the Boss" Masseria and Salvatore Maranzano of New York were not invited. The old guard or "Mustache Petes" maintained traditional old world ideals and business practices that restricted them from working with other ethnic gangs outside of the Italian underworld, this was counter to the ideals and principles that the leaders, such as Luciano and Torrio wished to express to the other delegates in Atlantic City. At the time of the conference, future underworld power, Joseph "Joe Bananas" Bonanno was Maranzano's top Lt. and aide and was not invited to Atlantic City, but he would soon become one of the architects of the "National Crime Syndicate" and the La Cosa Nostra Commission.

The conference started off with a bit of an embarrassing incident for some of those invited who tried to check into the first hotel Nucky Johnson had them registered at. Johnson had registered them at the exclusive Atlantic City Breakers Hotel along the Boardwalk, which was restricted to white Anglo-Saxon Protestants, and Nucky had used proper Anglo-Saxon aliases for the guests. (Ironically, in later years, the Breakers Hotel catered to a mainly Jewish clientele, becoming known as "The Aristocrat of Kosher Hotels".) Once the hotel's management got a look at some of the guests who were trying to check in, the aliases didn't match the Italian and Jewish faces staring at the management and they delegates were refused admittance in to the hotel, the manager not knowing who he was refusing. By this time Johnson had heard about the problem and rushed over to the hotel to take care of the situation. Al Capone being himself screamed at Nucky Johnson for not making the proper arrangements and a loud argument ensued between the two gangsters while the others watched and hoped they would not come to blows. Suddenly Johnson who was taller and heavier than Capone shoved him into a limousine and ordered every one to follow him. They headed for the Ritz-Carlton and Ambassador Hotels and when Capone reached the hotel he ripped several framed paintings and photos off the walls of the hotel and started to throw them at Nucky Johnson. The others concentrated on keeping Al Capone calm and quiet for the time being.

For the first three days there were a constant round of parties at the hotels with Nucky Johnson supplying plenty of liquor, food and girls for entertainment. For the guests who brought their wives or girlfriends, Johnson provided the women with fur capes as gifts. Meyer Lansky who was the new bride groom and guest of honor received the Presidential suite at the Ritz Hotel, with a constant supply of champagne for him and his wife Anna.

There were several important items to discuss among the Bosses and attendees such as constant competition for imported and bootleg liquor profits among the gangs, what to do about the liquor business if or when Prohibition ends, greater investment in gambling operations and what to do about the Chicago and Irish problems. As would be expected with sharply dressed gangsters from around the United States, the Atlantic City delegates conducted their more serious discussions and business, privately in conference rooms atop the Ritz and Ambassador Hotels, but not all the meetings were held in a room around a long table, some discussions were had out in the open, with the delegates taking their socks off and rolling up, their pants for walks along the beach, on the sand and in the open air. This made the Conference no great secret, with local newspapers carrying photos of Al Capone and some of the other prominent delegates as they cruised down the boardwalk and beaches, dipping their feet into the water. Important decisions were made to stop competing with each other during the remainder of Prohibition and cooperate in pooling their resources to maximize profits and develop a national monopoly in the illegal liquor business. One of the most important discussions was what to do when Prohibition ends. The Bosses decided to reorganize themselves and their gangs into cooperative organizations, investing in legitimate breweries, distilleries and liquor importation franchises. By making investments in the legitimate liquor business and by owning nightclubs, bars and restaurants to distribute the liquor and maximize profits, this gave the Syndicate some security against the repeal of Prohibition.

The delegates held discussions about taking a larger interest in illegal and cooperative gambling activities such as bookmaking, horse racing and casinos. The New York and Chicago representatives laid out a plan to tie in the national wire service for horse racing bettors with the Daily Racing Form and to lay off bets throughout the United States. This idea was introduced to the conference delegates after Al Capone ran into Chicago's Moses Annenberg who controlled the mob that enforced distribution of William R. Hearst's newspapers in the Chicago area. The Families in New York and Chicago would oversee and direct operations for this cooperative and very lucrative venture. New York Bosses, Frank Costello and Meyer Lansky were chosen as directors to coordinate the operations along with Chicago representatives. New York's future layoff king and gambling czar Frank Erickson was chosen to oversee the organization of the operation along with Chicago's Moses Annenberg. Chicago businessman and underworld associate Moses Annenberg was not originally invited to the conference, but after running into Capone, the well known Annenberg was most likely invited to confer with the leaders on business matters concerning the national race wire.

It was agreed by the conference delegates that investments in the legitimate liquor business and gambling was the way to offset the loss of profits from the end of Prohibition and discussions to divide the country into exclusive franchises and territories for the Bosses and their gangs were started at the Atlantic City Conference.

Another important topic was the ongoing violence and bloodletting that was occurring in Chicago. The underworld wars in Chicago and to some extent New York, had brought about a public and media outcry on law enforcement to stop the violence. There had been added media and law enforcement attention and this was placing pressure on underworld rackets and operations around the country. Most of the pressure was mainly due to the recent St. Valentine's Day Massacre in Chicago. With former Al Capone Boss and mentor Johnny Torrio taking the lead and Charlie "Lucky" Luciano and the other delegates backing him up, Capone was chosen as a sacrificial lamb to ease the heat brought on the underworld and its leaders. Al Capone was convinced after much debate and refusal to allow himself to be arrested on a minor charge and sent to prison for a short period of time, deflecting the media and law enforcement pressure for the good of the whole underworld. After the conference was concluded, Chicago underworld Boss Al Capone and his bodyguard Frank Rio went to Philadelphia where two friendly cops arrested and charged them with carrying a gun. Al Capone and Frank Rio were sentenced to a year in prison, but were released and back in Chicago after several months.