William Wilkerson - Bugsy's Influence

Bugsy's Influence

Like many of his gangster counterparts, Siegel yearned to be legitimate. The perfume of legitimacy and respectability he craved was still well beyond his reach. But by the spring of 1946, that perfume became stronger - wafting in on the heat waves of Wilkerson's Flamingo.

Meyer Lansky pressured Siegel to represent them in Wilkerson's desert project. Someone had to watchdog their interests. Siegel, who knew Wilkerson and lived near him in Beverly Hills, was the obvious choice as a liaison. But Siegel was infuriated. He wanted no part in any operation that took him back to Nevada on a permanent basis. It meant forsaking his comfortable Beverly Hills nest and Hollywood playboy lifestyle and enduring the sweltering heat of the Nevada Desert. At Lansky's insistence, however, Siegel reluctantly consented.

Throughout the spring of 1946, Wilkerson and Siegel met almost daily at the publisher's office. He worked closely with Wilkerson, assisting him in every way possible. Wilkerson gave Siegel tasks to perform and welcomed suggestions. Siegel proved remarkably useful. He obtained black-market building materials through his connections. The post-war shortages that had dogged construction were no longer a problem. At first Siegel seemed content to do things Wilkerson's way. His desire to learn everything about the project from the ground up took precedence over his "sportsman" lifestyle. It also seems to have temporarily subdued his aggressive impulses. Under Wilkerson's tutelage, Siegel played the willing pupil, earnestly learning the mechanics of building an enterprise.

The role of the pupil did not come easily to Benny Siegel. Perhaps outdistanced and afraid of being upstaged by his mentor, Siegel began to feel intimidated and paranoid. He grew increasingly resentful of Wilkerson's talents and vision. As time went on, the gangster's respectful admiration disintegrated into an insane, all-consuming jealousy. It all started quietly enough. Siegel reverted to his familiar role; the big-shot. He began making decisions on his own without Wilkerson's consultation or authorization. Informing work crews that Wilkerson had put him in charge, Siegel ordered changes which conflicted with the blue-printed plans. Wilkerson was understandably furious. When Siegel was confronted, he sheepishly apologized, only to resume his autocratic behavior once Wilkerson's back was turned. Then, taking credit for Wilkerson's vision, Siegel began boasting that the Flamingo had been his idea.

The problem came to a head when Siegel openly protested his watchdog role. He demanded more hands-on involvement in the project. In an effort to appease the gangster and keep the project moving smoothly, Wilkerson agreed to a compromise. It was mutually agreed that Siegel would supervise the hotel portion while Wilkerson retained control of everything else.

Siegel asked Wilkerson to find him an architect and a contractor. Wilkerson readily obliged, hiring architect Richard Stadelman and Phoenix contractor Del E Webb. The construction project was split into two distinct halves, Siegel had his crew and Wilkerson had his. There was little or no communication between the two sections, and soon the operation fell into a welter of disarray and mayhem. Neither man would have anything to do with the other. Siegel's jealousy manifested itself even further when he went into furious competition with Wilkerson. Within a month he had spent the funding allocated for the hotel portion and stridently demanded more from Wilkerson's budget. Wilkerson refused.

Wilkerson had every reason to be worried. Siegel's unchecked extravagance was alarming. Wilkerson's only hope was that the powers behind Siegel would awake to the situation and fire him. He reasoned that he could still make the venture a success so long as Siegel was stopped in time.

As time passed, Siegel's grandiose ambitions mushroomed into uncontrolled greed. Unhappy with the business arrangements originally negotiated by Harry Rothberg, the gangster began to view Wilkerson, who held the reins of power, as a major obstacle. In May 1946, Siegel decided that the original agreement had been a mistake. It had to be altered to give him full control of the Flamingo. Siegel offered to buy out Wilkerson's creative participation, not with cash, but corporate stock - an additional 5 percent ownership in the operation. On June 20, 1946, Benny formed the Nevada Project Corporation of California, naming himself as president. He was also the largest principal stockholder in the operation, which defined everyone else merely as shareholders. From this point on the Flamingo became effectively a syndicate-run operation.

The brief friendship between the two men was also now at an end. After the incorporation, Siegel could not get rid of Wilkerson fast enough. With Wilkerson now a mere stockholder, the Flamingo was Siegel's, interference free. He never consulted Wilkerson again and wasted no time in implementing his own plans.

W.R. Wilkerson Enterprises underwent an astounding change. Siegel fired all of Wilkerson's on-site associates and staff. Decorator Tom Douglas and architect George Vernon Russell were replaced by Del Webb and Richard Stadelman. Responsibility for the interior decorations was delegated to Siegel's girlfriend, Virginia Hill.

Wilkerson had been stripped of all creative control. His duties as hotel manager could not begin until the hotel was finished. Seeing no point in remaining in Las Vegas, he returned to Hollywood.

Siegel's dream of owning the Flamingo outright was still unrealized. As yet, one crucial element remained - the land. Contractually, this acreage belonged to Wilkerson under the terms of the February 28 agreement. Siegel schemed to obtain full possession of it from the publisher. Siegel offered Wilkerson a percentage of corporate stock in exchange for his land. Wilkerson agreed to sell half his property for an additional 5 percent stake in the Nevada Project. Siegel signed an agreement to this effect.

But Siegel was still unhappy. He brooded over the remaining half, and in early August, approached the publisher to sell his final parcel of land. Again the gangster offered corporate stock. And again Wilkerson agreed, but insisted on another 5 percent as payment. Siegel accepted. On August 22, 1946, and agreement reflecting this exchange was executed between the two men. This brought Wilkerson's shareholding total in the corporation to 48%, making the publisher the largest single shareholder in the Flamingo