Labor Slugger
Encouraged by Rothstein, Shapiro and Buchalter entered the lucrative arena of New York labor racketeering working for Jacob "Little Augie" Orgen. Orgen had previously wrested control of this racket from Nathan "Kid Dropper" Kaplan in the decade-long labor slugger wars. The gangsters had infiltrated labor unions in the busy Garment District of Manhattan, assaulting and murdering the union leadership to gain control. The gangsters then instituted a system of kickbacks and skimming from union dues while at the same time extorting the garment manufacturers with the threat of strikes.
After working for Orgen for a while, Shapiro and Buchalter started planning to take over his operations. Realizing that Shapiro and Buchalter posed a threat, Orgen allied himself with brothers Eddie and Jack "Legs" Diamond. Shapiro and Buchalter soon made their move. On October 15, 1927, Orgen and Jack Diamond were standing on the corner of Delancey and Norfolk Street in the Lower East Side. Two gunmen (thought to be Shapiro and Buchalter) drove up to the corner. One gunman got out of the car and started shooting while the driver began shooting from the inside the car. Orgen was killed instantly and Jack Diamond was severely wounded. With Orgen's death, Shapiro and Buchalter took over his labor racketing operation. The two partners soon began massive extortions of both labor unions and businesses as they created a massive criminal monopoly in the Garment District.
Read more about this topic: Jacob Shapiro
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