Few mob historians say that Hyman "Hy" Larner aka “Red” Larner was one of the most low profile and shadowy figures in Chicago’s underworld history.Once when he was recognized by the government or the press,he was named by the tabloids as "The Ivy League Mobster",”The Riddle Man”,“Chicago’s Mistery Man” and also as “Chicago’s Meyer Lansky”.All the other mobsters that appeared in the papers every day, their pictures were all over the front page’s but when Larner’s name was mentioned,he was sometimes described as a “forntman” or “puppet” of some of the big shots in the Outfit and nothing more than that.In fact Hyman was a Jewish international mobster who was considered as a member and started from the bottom and than rose to the top and became very powerful within the Chicago Outfit and understood the rackets and was a very smart and shrewd person and there are many legends and riddles about his life.Larner belonged to the non-italian faction of the Chicago Outfit and he rarely appeared on any of the criminal charts but there are strong evidences and reports that he was involved with the Outfit’s major leagues and major businesses for a long period and was also recognized by some law enforcement as one of the mobs higher-ups.Also his life story may bring some unanswered questions about the Outfit in to the light.Did he really managed to stay in the shadows and pulled some strings here and there,or he really was just a puppet for the mob,its for you guys to decide.This is his story from my point of view…
Born in 1915 in Chicago,a jewish boy in a poor family which later was driven by the way of the streets and criminal life like any other young hood in Chicago’s South suburbs.He dropped out of school at young age and started working for political bosses around the Chicago area as a ruthless enforcer or as a “bummer” during elections and union protests.Since childhood he was a very tuff kid with a high pitched voice.He started his criminal career with other youngsters who were hired to descend on political or union gatherings of rival candidates for the sole purpose of creating a disruption by using bone-breaking tactics with fist fights and in some cases even a murder.Theres not much info about Larners criminal roots so we must get back in the criminal past of the Outfit to understand the circumstances that sorounded and brought him into the life.
Back in the 1920’s,the infamous Chicago mobster Edward Vogel was the one who originally invited many gangs into Cicero for the help of fixing the 1924 election.At that time the Italians like John Torrio and Al Capone headed one of the biggest and strongest gangs in Chicago.Even other gangs,like the Irish Northsiders or the Dean O’Banion gang, were also getting along.They all knew that if they all played along with Vogel and helped in the elections,millions of dollars could be made.Vogel also knew that if his choice as puppet mayor was elected, then Cicero would be a wide open teritorry for gambling, booze and prostitution. Millions were to be made for all the gangs(Italian,Irish,Jewish) who played along.Some of the gangs like the Torrio’s and O’Banion’s already had their own stakes in the bootleging and gambling operations in Vogels territory and they all have sent their own reinforcements to help with the election.This made a big conflict between these gangs and Vogel knew that,but the thing was he didn’t care because he just needed a backup for his own greedy needs.
So during this time period there was a war between the Torrio gang and the O’Banions.Torrio already had a big vice joint in Cicero but he had no political protection and the joint was closed many times.So the same year on April during Chicago’s Primary election,the so called “satellite” gangs that were connected with the Torrio’s immediately went to work.Many gangs started polling booths with machine guns to see if the local residents "voted right".They even attacked and kidnapped several campaign workers and cars filled with gunmen paraded the streets of Chicago.Some even entered the office of Democratic candidate William Pflaum,broke every bone in his body and wrecked his office.Democratic campaign worker Michael Gavin was shot in both legs and held against his will with eight other campaign workers until Election Day was over.Also Stanley Stanklevich,a Democratic worker was kidnapped and 8 others held as prisoners.The government heard about the violence and sent 70 Chicago police officers in which resulted with the death of Frank Capone,one of Al’s brothers.In the end Vogel won the election and Cicero became a captive city.Vogel’s main business,besides smuggling booze,was the gambling business.Vogel,from his connection with the new mob in power reaped richly from it's benefits.David Morgan was a Chief investigator for the Minister's and Citizens association and was under Vogels payroll.He also had a share from the gambling rackets in Cicero so one day,for unknown reasons,Morgan tried to inform the government about Vogel and his associates.So on July 8,1925 Vogel,with the “ok” from Torrio,sent few of his underlings to find Morgan and put him on the spot.He was found and was shot multiple times but survived the shooting and never again said a word about the operation.
Edward Vogel
Back in the days,during the mid 1920’s Vogel with the help of the Capone’s passed the word along the suburbs that they wanted to install coin machines and gambling devices around the locals.Matt Kolb was one of the obstacles.Kolb was a big time racketeer and a gambling czar who ruled the North West Side and held more than 150 joints.The Outfit needed to use force because every time when they wanted to place their coin machines,all of the merchants refused.Jake Guzik,the Outfits gambling big shot,tried to change Kolb’s mind from time to time but that didn’t worked ether.Years passed and on October 25 1931,the Outfit’s boss Al Capone was convicted of income tax evasion and sentenced to ten years in prison and that same day Matt Kolb was killed at his speakeasy gambling club, the Club Morton on the corner of Dempster and Ferris Road.The shooting suspect were Red Barker and Paul Ricca. Kolb's death was a major push for Vogel and his gambling empire in Chicago.
In Chicago the Italians and the Jewish community were united in crime since the early days so young Hyman made connections with many criminal hoods from different nationalities like older criminals from the 42 gang or jewish gangs headed by the Guzik brothers.
On April 12,1932 it was one of the most violent election days in the history of Chicago. 40,000 cops were watching to prevent fraud and organised terrorism during the election.There was few shootings,few kidnappings, and numerous fights that resulted with more than 100 hoodlums being arrested.Young Hyman “Red” Larner together with other hoodlums were recruited and armed with macnineguns and baseball bats to “keep the peace” at ballot boxes during the elections.They were hired by the Outfit and Larner together with his cronies started to colaborate with the Capone gang and also joined in this movement.This was the time when Hyman Larner was introduced to his mentor and also his future boss Eddie Vogel.Vogel was similar to New York’s Arnold Rothstein in finding fresh meat,or in other words finding young hoodlums with brains.Vogel saw something else in Larner besides muscle,he saw that the young hood also had brains for business.
During that period the Chicago Outfit has made its mark mostly on industries like bootlegging booze and prostitution.The new slot machine and gambling industry also embodies the fundamental nature of mafia racketeering.Slot machines built during this period usually had a payback of about 50% when they weren’t bugged.When half the money you feed in its retained, it doesn’t take long before the machine had it all. And when the bug was used, you lost even faster. It was this type of machine that was called the “one-armed bandit”.
Not coincidentally, the Outfit and the mob in general,also became involved in the production of slot machines in the 1920’s and 30’s, as exemplified by the business activities of Eddie Vogel.Vogel by now was a big time dealer of coin machines like the slot machines and other machines of various entertainment. By this time there were numerous gambling joints in Chicago ranging from handbooks for racetrack betting,many of which also contained slot machines.For example there was Cicero’s Rock Garden Club.Rocco Fischetti, sometimes known as Ralph Fisher has been in charge and control of this large gambling establishment.AlsoVogel knew Frankie Foster, a Chicago gangster who operated illegal gambling for many years.Foster was considered as one of Chicago's toughest mobsters in the gang era of the 1930's.So young Larner besides doing political violence he was now involved in many illegal gambling operations by placing slot machines.Under his bosses rule,Larner with the help of his new contacts, forced many local owners to pay tribute to the Outfit and place Vogel’s gambling machines.He used many violent tactics such as breaking slot machines or breaking bones of the owners who refused to pay up.Young Hyman also knew how to deal with independant slot operators who tried to muscle in on the Outfit’s territory.The slot machines represented only a portion of the businesses that Ed Vogel controlled,and were the foundation of other future criminal activities.
The one-armed bandit(courtesy of myalcaponemuseum.com)
During the 30’s,when the Outfit also placed its foothold in Miami,Florida,a lot of gangsters opened their own joints,private houses and criminal operations(mostly gambling)in that area.A Miami grand jury reported that "in much of the city, residents and tourists alike could find numerous street machines and other gambling devices."Mobsters like Vogel,Ralph Capone and Jake Guzik sent their own men wich placed and oversaw the gambling operations in Miami.Some reports say that duiring this period Vogel,together with Guzik,made a connection with New York’s big shot Frank Costello and expanded the coin machine business around the country big time.Vogel agreed to send Larner to expand the gambling and coin machine rackets as one of the Outfit’s representatives in Florida.
By now the New York mob has established their own gambling operations in Florida and their main representative was Meyer Lansky,the infamous jewish mobster.Many mob historians say that Lansky was the financial brain behind this operations but I look at him more as a frontman for the mob.Yes he knew how to gamble but his main success was his mafia connections.The mob gave him physical security for their establishments and also gave him their financial back up.The Chicago Outfit and Lansky's organization started a good working relationship and by this time the young up and coming mobster Hy Larner was ordered to work closely with Meyer.Meyer became also one of his mentors but Larner’s primary loyalty was to the Outfit and Eddie Vogel.Lansky taught his fellow jewish “student” how to operate and how to gamble,so he became one of his favorite underlings.
By 1940 Larner had no criminal record at all which amazed his mob bosses and fellow associates.Also on May 31,1940 Ralph Capone,one of the Outfit’s big shots was arrested by the police on gambling charges and during his interrogation he claimed that does not know anything about the slot machines,Hy Larner or Edward Vogel.On August 28,1940 there was a takeover in Chicago’s Melrose Park for the jukebox territory.Vogel have sent Larner and other hoodlums to crush,burn and smah their rivals jukeboxes.Also two truckers of the Universal Automatic music corporation were kidnapped and also several murders occurred during the conflict.When the smoke cleared,Vogel has claimed Melrose Park as his own gambling territory.Vogel and Larner also expanded their coin machine business in Skokie and Des Moines.In 1941, it was estimated that the gambling operations of the Chicago Outfit made an amount of $3,875,000 and at the age of 26,Hy Larner made his first real big fortune.While smuggling coin machines through out the country,in 1941 Larner was arrested for the first time in Little Rock, Ark., for possessing a gaming device and was fined $316.90 and was also sentenced to serve 30 days in jail.This was his first and last conviction.At the beginning of the 1940’s Larner faithfully served his bosses and eventually drifted into the orbit of the non-italian faction of the Chicago Outfit which was headed by Jake Guzik,Murray”The Camel”Humphries and Eddie Vogel.
Back in the 1930’s,the mob had already established gambling operations in Cuba also.All of the national crime families had their own shares in the hotels and casinos.The Chicago Outfit had its shares in the Sevilla Biltmore and the Sans Souci hotels and casinos.The Outfit had its own top representatives in Havana so other low level Chicago mobsters also started to operate their own operations as well.Big shot Ed Vogel,now connected with the NY mob,was placing coin machines not just in the Outfit’s casinos but also in other joints as well that were owned by different factions of the national syndicate.In the early 40’s Vogel already made connections with some Cuban officals like Cuban president General Fulgencio Batista and many underworld figures and with the help of these connections Hy Larner started to smuggle coin machines in and out of the country big time.Larner also got involved and invested in other criminal enterprises such as smuggling tobacco and white slavery or prostitution.By now Larner established good connections in Cuba and made his own smuggling routes which was his way for making the big buck.Hundreds of prostitutes were smuggled from Cuba into the U.S. or the other way around.Larner now was connected to another up and coming mobster and also one of Vogel’s best underlings,Gus Alex,a greek mobster who,together with Larner,ran a multi-million dollar prostitution ring out of elite hotels and casinos in and out of the U.S.
In the early 40’s some of the old bosses started to get nervous because the ambitious young turks were makin more and more money and with money,comes power and that left a sour taste in the mouths of some of the old bosses.So on April 1943 one of Larner’s mentors,Jake Guzik was kidnapped allegedly by the hot headed Taylor street crew.In a condemned building in Cicero with a gun to his head,story goes that the boys gave Guzik $200.000 and offer to support the new generation or else.Guzik agreed and was released in just two days.Thats when Larner met his new partner in crime Sam”Mooney”Giancana the future boss of the Outfit who had full support from the younger generations and also from one of the “fathers” of the Chicago Outfit,Paul”The Waiter”Ricca.
During the mid 40’s Vogel had an idea for placing cigarette machines in mob controlled restaurants and bars in Chicago and with Larners new tobacco smuggling connections,there was no problem.Larner started to import Cuban tobacco and cigarettes into the U.S. and with the help of his mob associates,every tavern,bar,restaurant,hotel,club or casino had Vogel’s cigarette machines.Also Larner was involved in highjackin trucks filled with cigarettes along the nations highways.Placed in Vogel’s vending machines,each pack of stolen cigs offered a 100% profit.This operations brought a lot of cash for the Outfit and a new big fortune for Hy Larner.Larner was partner with Sam Giancana in the cigarette business and theres a rumour that current Outfit front boss Tony”Joe Batters”Accardo was involved in this business also.Theres another story that by this time the national mob sometimes used Larners smuggling routes for importing narcotic’s in the U.S. and two of his partners were an up and coming bosses Santo Trafficante Jr. from Tampa and Carlos Marcello from Dallas.
With all of these operations Larner stashed so much dirty cash that he had to find a way to hide it because after Al Capone's conviction for tax evasion back in the 30’s ,Larner saw that he was also too vulnerable to a similar prosecution.To protect himself,Larner transferred the illegal earnings from his growing smuggling and coin machine empire to a Swiss bank accounts,where anonymity was assured by the Swiss Banking Act.Larner also started to launder his dirty cash by investing in numerous steel companies and also in oil wells.By the late 40’s Larner owned few restaurants and a mortgage company in Chicago and also had a interest in four oil wells and other investments like real estate.He made over $150.000 a year and had a big apartment in Chicago 3430 at Lake Shore Drive,also one in Skokie and a big house in Miami,Florida.
In April 1947,bossman Eddie Vogel was arrested on gambling charges.He and his brother William Vogel, Tony Fragassi(Vogels bodyguard),Skokie's village president and his trustees were indicted for operating slot machines in Skokie.On May 13,1947, the Outfit’s Judge John A. Sbarbaro,also known as the Outfit’s undertaker because he arranged all of the funerals for the Outfit’s big shots, frees Edward Vogel , his brother William and all indicted in the conspiracy.Also Cicero’s former assistant state's attorney Frank Christensen was involved in a gambling racket with the village president John C. Stoffel.Both were on Eddie Vogels payroll.Both man tried to muscle Vogel and also tried to black mail him.So in April 1949 Chistensen was shot to death outside of his home and few days later a car filled with Outfit hitmen blocked Stoffel's car and started taking shots at him, but he managed to get away.
Now a lot of Outfit big shots started to have legal problems and the young guns ,including Larner,saw the big picture and pushed forward to take over the underworlds kingdom.Larner slowly buy surely was becoming one the Outfit’s international gangsters.Now he had to protect himself with the help of his old associates and alliances so he inlisted some low level criminals and formed his own gang and street muscle,but he still answered and paid tribute to his boss,Edward Vogel and the other Outfit higher ups.
By the late 1940’s Larner recruited other small time ex-convicts,burglars and extortionists to do his “dirty work”.Larner’s oldest associate was Pete Altieri,a big time slot machine operator and also a “army recruiter” for Ed Vogel.One of Vogels underlings and a close associate of Larner,was also Jim”The Green Hornet”Rini,a ruthless Chicago criminal who did a lot of burglaries,extortions,car thefts and hits for the mob.Theres a story that he did more than 20 crimes in one night and he also had his own small band of low level criminals.Also two other associates were Frank”Tommy Leggs”Mustari,Outfit hit man involved in many hijacks and in the slot machine business and Alex Ross,a huge ruthless enforcer and a hitman for the mob.Frank Mustari was the cousin of Sam Rinella,a known Al Capone’s capo back in the 1920’s.Tony Fragassi was Eddie Vogels bodyguard and also a tax collector for Vogels coin machines and a close associate of Hy Larner.Lou Lederer was also a close associate of Larner and a partner in Hy’s smuggling business.Lederer was a sort of a scout in other countries for Larner and the Outfit and also a frontman at The Tropicana hotel/casino in Las Vegas. All of these men,including Larner and Gus Alex,answered to their bosses Vogel,Guzik and above all,Humphries.Also all of these guys had an extensive reputation in Chicago as being what was known as outstanding ruthless con men.Jim Rini,Frank Mustari and two of their associates Robert Furey and Angelo Divito,once were arrested with a list of 100 prostitutes, suspected of organizing a racket to smuggle the prostitutes out of the country. Undoubtedly, this was a syndicate operation operated by Hy Larner and Gus Alex.
This crew of extortionists and muscle men also worked for the Chicago Heights crew and protected their slot and vending machines under the rule of Francis Curry. He was a close associate of Hy Larner and also a very close friend of Outfit boss Paul Ricca. Curry and Larner were given permission to operate their machines in Will County and payed tribute to the Chicago Heights crew boss Frank LaPorte. Dennis Kelly was a union delegate with underworld connections. One day he decided to move on some of Curry’s and Larner’s gambling operations so in April 1947 he was shot by a few gun blasts but managed to survive.
William “Bill” McCabe who was an ex-County State’s Attorney and was also a part owner of a newspaper called The Spectator which started publishing in 1929. The Spectator was a weekly newspaper which actively crusaded against gambling operations and the mob. So McCabe decided to run for committeeman in the Forty-Sixth Precinct in April 1948. He was known among the Outfit members as an outspoken critic of vice and gambling. So on April 8,1948 McCabe was kidnapped, stabbed, beaten and shot but miraculously managed to survive. Later McCabe claimed that he was attacked by Outfit henchmen for refusing to withdraw from the elections. He eventually recovered and remained as the main shareholder of the weekly Spectator but ceded daily control of the newspaper to his partner, Molly Zelko. Zelko continued strongly the crusade against the Outfit’s gambling operations.
