On March 16 and 17, 1954, the federal bureau arrested Anthony Pape and the rest of his crew on narcotics charges. In fact, the feds managed to infiltrate an undercover agent who posed as narcotics buyer. The agent’s name was Harry Mattera who testified before the grand jury that he saw Coduto come out of a restaurant, entered an auto with Pinna and then drove to the 1500 block in Warren av. He also said that he saw Coduto counting out money to Pinna. Coduto then received a newspaper in which two packages of heroin were wrapped. The agent said that later Coduto returned to the restaurant and gave the newspaper to Mattera. Mattera also added that he paid $800 for the heroin packages. Later the dope peddlers refused to sell the agent more dope and counterfeit money, so the agent told his superiors that the Pape gang had detected him and would kill him. For this reason, the bureau decided to make the arrests. Because most of the defendants like the Pape brothers and Coduto were released on $25,000 bonds, Accardo immediately called a meeting with his West Side representatives Giancana and Battaglia and ordered the deaths of the Pape gang members.
On April 10, 1954, Anthony and James Pape were driving down Flournoy St. when suddenly another car with two hitmen blocked their path. James Pape, who drove the car, apparently made a frantic effort to elude the assassins by turning south and that’s when one of the hitmen fired few shotgun blasts hitting James in the head and also fatally wounding his brother Anthony in the head and shoulder. Their car went out of control, struck the corner of a building and stopped on the sidewalk. James’ body was found sprawled face down in mud in the parkway with his legs still under the steering wheel and Anthony was in front beside the driver s seat. Anthony was taken to the Garfield Park hospital in a critical condition and died two days later. He never gave up his killers. My opinion is that since the killing occurred near the Lawndale area, Battaglia must’ve sent Lenny Patrick and William Block to do the job. Now the rest of the Pape gang members were receiving death threats, which was the main reason for them to start shaking in their own boots and be scared from their own shadows. Frank Coduto told the feds that he and the rest of the gang were very much scared for their safety and pushed for their imprisonment because they knew if they stayed at their homes it was the end for them. But it was too late for Coduto. On May 14, 1954, Coduto was on his way home while driving along Cullerton St with one of his associates. When he came near his house, his wife Antionette was waiting for him at the window but she filed to see the man on the back seat. Suddenly few shots were fired from a .38 caliber pistol and Coduto fell against the door causing it to open and his body fell out. Coduto was shot three times in the back of the head and once in the shoulder. Out of nowhere a black sedan came behind Coduto’s car, picked up the killer and sped off into the night. The other gang members were saved by going off to prison. For example, Schullo received 60 years, Ponzi and Pinna received 15 years separately and Iacullo received 30 years in prison. So again the Outfit bosses succeeded in protecting themselves by “silencing” the only people that had the chance to connect them with one of the dirtiest business in the underworld.
Frank Coduto
During this period the government wasn’t well informed about the Outfit’s hierarchy and membership but they started to listen to stories about the new up and coming “young bloods”. Rumours spread around that the new guys were hoping that some kind of trouble would turn up among the old gang chieftains and they would kill
each other, so things would get better for younger fellas. Whether the rumours were true or not, in August, 1954 two Outfit old timers Charlie Gioe and Frank Maritote were murdered obviously on the orders of the Outfit’s hierarchy. The murders were allegedly executed by Battaglia’s personal and favourite duo Charles Nicoletti and Felix Alderisio. Also the mid 1950’s was a tough period for Tony Accardo because the government was after him and he also managed to make few mistakes along the way. So Ricca decided that he should give the top spot to the man that desired it the most and would kill anyone just to get there. That man was Sam Giancana. Giancana was blinded by the huge amounts of cash and extensive power that he simply overlooked the heat from the government that was coming his way. Ricca understood this, Accardo understood this and even Battaglia understood this. But even with that Giancana would bring the Outfit on much higher scale which was never seen before.
Giancana’s organization looked like this…Frank Ferraro from the South Side was his underboss and Murray Humphreys was his advisor and political fixer. Hyman Larner was the main guy with overseas connections and smuggling routes. Ricca and Accardo remained in the shadows behind Giancana as top advisors, especially Ricca. Ross Prio remained as the top representative on the North Side and after the death of Claude Maddox, Joseph Aiuppa became the boss of the Cicero area. Aiuppa’s close associate Jack Cerone was the boss of Elmwood Park, the old Mafia boss Frank LaPorte was the main guy in the Chicago Heights, Lenny Patrick had the Lawndale area and part of Rogers Park, and Fiore Buccieri and Sam Battaglia took the West Side and other parts from the city. Bucceri was the main guy in the old area of Taylor Street, parts of the North/West Side and parts of Cicero and Battaglia took Melrose Park and other areas. If you look at this list, you will see that Giancana’s organization was very much similar to the hierarchy of the old Capone gang. Except for the fact that the top positions were taken by the Italians, they still had the non-Italians on high positions and Giancana’s ego was as bigger than Al Capone’s.
Chicago Outfit boss Sam Giancana
So now Sam Battaglia went to the Casa Madrid in Melrose Park and told Rocco DeGrazia that he, meaning Battaglia, is in charge now. The old man simply stepped away and remained only as owner on a document paper of the Casa Madrid which was renamed by Battaglia as the Avenue Lounge. The basement of the joint was where Battaglia held “debtors court” where he sat as a judge in his court room and decided who is going to get a beating and who’s going to end up dead. Now you ask your self why there is not another option like not getting anything of those two options?! That’s because if someone was called at the Casa Madrid, that meant that he was in big trouble. Battaglia was known for chasing debtors by himself around the streets of Melrose Park and gave them the “bust ya in the teets” treatment publicly in front of everyone in the neighborhood. Because of his violent and at the same time public actions, Battaglia became one of the most feared and successful loan sharks in Chicago. Battaglia handled few millions of dollars on the streets of the Windy City at any given time. Battaglia also controlled gambling and loans shark operations in the suburbs of Melrose Park, Schiller Park, Bellwood, Franklin Park, Stone Park, Northlake and also in Gary and Hammond, Indiana and Milwaukee, Wisconsin.
Now in the position as area boss, except gambling and loan sharking, Battaglia also operated several other illegal enterprises including extortion, burglary rings and narcotics. He had a quite rough crew of enforcers and money makers that some of them were almost independent and since most of them were former 42 gang members they were also direct with the boss of the organization Sam Giancana. For example, Phil Alderisio was the main guy who specialized in loan sharking, extortion, bookmaking and was also a liaison between the Chicago Outfit and the Milwaukee mob. Alderisio answered only to Battaglia and Giancana. Another top guy was Albert Frabotta who was very close with Alderisio since the old days, and was also involved in extortion, gambling and of course in murder. Charles Nicoletti was the main enforcer in Melrose Park and one of the most feared individuals in the organization. His “hobby” was also gambling. Willie Daddano, another enforcer with fearless reputation, was a guy who loved stealing so he controlled a ruthless burglary crew and also specialized in loan sharking and extortion. Rocco Pranno, another gruesome individual who operated in Stone Park, was known for his involvement in vending machines, extortion and large scale of loan sharking operations. So the positions of these guys in the hierarchy of the Outfit were very confusing because they had other members of the organization who obeyed their orders or in other words most of these guys had their own crews. By looking at all of these big names in the Outfit it seemed like Battaglia was one among equals, but in reality he was a little bit more equal than the others because all of these high profile gangsters referred to other people in Battaglia’s name as “the old man wants to see you”. So according to my opinion, Battaglia was the “chief of staff”.
The gang also had high level associates who worked as front men and also had political connections. For example, Leo Rugendorf was the main front man for the gang in legitimate businesses, a major mob fence of stolen property and was also involved in large scale loan sharking activities. He was questioned about numerous murders and during one period of time, the FBI considered Rugendorf as a member of the Outfit. Irwin Weiner was also a favourite front man for the gang who worked as a bail bondsman and fixer and was also a very close associate of Battaglia and Alderisio. Battaglia’s brother Joseph was in charge of the gambling operations at a casino which was located in the Casa Madrid. Joe also handled few bookmaking operations around Melrose Park with another member of the crew known as Angelo Jannotta. Jannotta was one of Battaglia’s chief bookmakers together with Frankie Beto. Battaglia’s associate from the old gun totting days, John Wolek was involved in loan sharking activities and Joe Amabile still served as Battaglia’s enforcer and extortionist. Later Amabile was ordered to work in Northlake together with Rocco Pranno. Joe Rocco served to Battaglia as his leading counterfeiter and Rocco Salvatore was the chief driver and bodyguard. Salvatore also oversaw all of the gambling operations and reported everything to Battaglia. Tony Cardamone was a relative of Willie Daddano and served as Battaglia’s front man. John Zitto was a gambling operator and also worked as keeper at Battaglia’s headquarters the Casa Madrid. Americo DePietto was the guy that ran the narcotics racket in Melrose Park. He had a crew of dope peddlers that handled 10 million dollar a year narcotics ring that controlled over 80% of the trafficking in Chicago. DiPietto's crew was formed by members like Joe Battiato, Teddy DeRose, Angelo Passinni, Solly Monte, Frankie Carriscia and Mike Demaro. The crew had connections to drug traffickers from St. Louis, Detroit, Kansas City, Los Angeles and Cleveland. The crew imported heroin from France through Canada and also from South America. DiPietto worked under Alderisio and was also a close associate to Nicoletti. As for the old Capone mobster Rocco DeGrazia, he remained as an elder statesman for the gang and advisor to Battaglia. He also acted as a messenger or as Battaglia’s voice on many mob sit downs.
Rocco DeGrazia
The Melrose Park crew wasn’t the biggest money making crew within the Outfit but there was a certain characteristic that made it special. Most of the other crews were specialized in certain illegal schemes, for example the Northsiders were mostly involved in gambling and investment in very profitable legit enterprises or the Taylor Street crew which specialized in national loan sharking activities. The difference was that Battaglia’s crew maybe did not generate the same cash amount as Ross Prio’s North Side rackets but they were involved in every possible illegal racket. They had all of these different criminal contacts in and out of Chicago and so if anyone wanted to start a new venture, first they had to go and talk to the guy with most contacts and that was Sam Battaglia.
During the late 1950’s the Outfit’s main illegal racket in Chicago was loan sharking. The Melrose Park crew lent money to companies that were on the downfall such as car companies, building supplies wholesale companies, clothing factories and food companies. For example, in 1957 Meyer Ditlove, who was an Outfit associate and also ex-convict because he served time for his involvement in the infamous horse meat scandals, launched the Twin Food Products Company at 3250 Wentworth Av. The Twin Food became very successful company that sold shortening products to many restaurants and hotels around the Chicago area. And why was the company so much successful, well because guys like Sam Battaglia and Felix Alderisio held interests in the company. Ditlove needed more cash so he decided to get involved with the Melrose Park crew. Beside Detlove, Battaglia’s front men in the company were Leo Rugendorf who served as the company’s president, and Ditlove’s son-in-law Lawrence Rosenberg who served as secretary and treasurer. The main stockholders in the company were Battaglia, Alderisio and Albert Frabotta. Battaglia and his associate from the old days Marshall Caifano served as salesmen for the company and of course the main reasons for the success of the company were the hoodlum tactics that were applied on many night clubs, hotels and restaurants to induce them to buy from the Twin Products Company. The Twin Food also distributed products owned by sister companies such as Twin Distributing Company and The P&S By-Products Company, which both were owned by the Outfit. Battaglia who allegedly “worked” as a salesman for the Twin Food, was also a buyer for the P&S By-Products, who was engaged in buying of a meat by-products used in the manufacture of commercial shortening. So the companies became a real “cash cow” for Battaglia and his gang and they meant to keep it that way.
Another example was the Sterling-Harris Ford Agency at N. Cicero Av. in Chicago which was owned by Leroy Sterling and George Harris. Sterling was previously involved in the shortening business with the Twin Food Company but decided to form his own car business with his partner Harris. But there was problem for the two business partners and the problem was money. So Sterling decided to ask for help from his former business partner and secretary of the Twin Food Co. Lawrence Rosenberg. Rosenberg told Rugendorf about the problem and they received the “ok” from Alderisio and Battaglia. Now Sterling was in big trouble because he didn’t realize that he and his company were in the hands of the Chicago Outfit. Battaglia quickly connected the Ford Agency with the Evanston Cab Company which started buying cars from the Ford Agency because it was secretly controlled by Sam Giancana, Frank Ferraro and Gus Alex. Like any other legitimate enterprise, this company was also a “cash cow” for the organization but not for long.
Leo Rugendorf
During the late 1950’s the Chicago Outfit was too powerful and was slowly taking over the Vegas casinos from the rest of the national gangs. So in 1958, Battaglia’s old attorney and friend Sidney Korshak hosted a national mob meeting in Beverly Hills, California. Present at the meeting were Moe Dalitz and Morris Kleinman, representatives from the Cleveland mob, Joe Stacher and Longy Zwillman from the New Jersey mob, Meyer Lansky from New York, Sam Garfield from Detroit, plus Chicago delegates Sam Battaglia and the Outfit’s man in Las Vegas and Battaglia’s partner Marshall Caifano. The purpose of this meeting was about the Outfit’s takeover of the Stardust Casino. The casino was previously owned by Dalitz but he agreed, because he had no other choice, to lease the casino for $100,000 a year in the name of a firm known as Karat Incorporated. Dalitz was the president of that firm and John Drew, who was a known Outfit associate, was the vice president. So now Paul Ricca, Tony Accardo, Sam Giancana, Murray Humphreys and Sam Battaglia, all had their own shares in the casino.
In 1958, The United States Senate Select Committee on Improper Activities in Labor and Management, also known as the McClellan Committee, came to Chicago to study the extent of criminal or other improper practices in the field of labor-management relations. All of the well known Chicago Outfit bosses, members and associates were publicly questioned and were also uncovered for what they really represented. In July the committee called for Sam Battaglia to answer their questions and now the world had the first glimpse of one of the original mob figures in the country. Here’s a small part from the investigations:
The Chairman: State your name and your place of residence and your business or occupation.
Mr. Battaglia: My name is Sam Battaglia. I live at 1114 North Ridgeland Avenue, Oak Park, 111.
The Chairman: What is your business or occupation?
Mr. Battaglia: I refuse to answer on the ground that my answer…wait a while…I refuse to answer on the ground that my answer may tend to incriminate me.
The Chairman: I suggest you change that word "refuse" to "decline."
Mr. Battaglia: I decline.
The Chairman: Will you make that change as you read your statement?
Mr. Battaglia: I don't understand.
The Chairman: I said, instead of using the word "refuse," will you say you "decline"?
Mr. Battaglia: Do I have to do that?
The Chairman: Well, you may have to. I think "decline" shows a little more respect for your Government, don't you?
Mr. Battaglia: O. K. decline, then.
The Chairman: Proceed.
Mr. Kennedy: Could you tell us, Mr. Battaglia, a little bit about your background, as to where you were born?
Mr. Battaglia: I decline to answer on the ground that may tend to incriminate me.
Mr. Kennedy: Just where you were born, Mr. Battaglia. Can't you tell us that?
Mr. Battaglia: I answered already.
Mr. Kennedy: I am asking you again to reconsider your answer. Could you tell us where you were born, and the date of it?
Mr. Battaglia: I answered it.
Mr. Kennedy: I would like to have you reconsider it, and what is your answer on reconsideration of my question?
Mr. Battaglia: I answered it.
Mr. Kennedy: You haven't answered this question. I want to have the date and the place of your birth.
Mr. Battaglia: I decline to answer on the ground that may tend to incriminate me.
Mr. Kennedy. You were born in Chicago, were you, in 1909, is that correct?
The Chairman: Let the Chair make a record here, please. We are going to test out some of these instances. The Chair will ask you the question "Where were you born?
Mr. Battaglia: I refuse to answer…decline to answer on the ground that that may tend to incriminate me.
The Chairman: With the permission of the committee, with its approval, the Chair orders and directs you to answer the question.
Mr. Battaglia: I answered it.
The Chairman: Is that your answer?
Mr. Battaglia: Yes, sir.
The Chairman: You understand that you are being ordered and directed by this committee to answer the question as to where you were born?
Mr. Battaglia: I just told you where I was born.
The Chairman: You did?
Mr. Battaglia: I just told you.
Mr. Kennedy: Is that correct?
Mr. Battaglia. I answered the question.
The Chairman: Now, I asked you the question, and I have ordered and directed you to answer, and state where you were born.
Mr. Battaglia: I answered it.
The Chairman: Is that your answer?
Mr. Battaglia: Yes, sir.
The Chairman: That is not an answer. That answer will not be accepted. Do you still refuse to answer?
Mr. Battaglia: I answered it.
The Chairman: I said: Do you still refuse to answer and state to this committee where you were born?
Mr. Battaglia: I answered it.
The Chairman: Is that the answer you want to give?
Mr. Battaglia: Yes, sir.
The Chairman: Your answer is that you refuse or decline on the ground that to answer it might tend to incriminate you?
Mr. Battaglia: Yes, sir.
The Chairman: Do you honestly believe if you told this committee where you were born that a truthful answer to that question might tend to incriminate you?
Mr. Battaglia: One answer leads to another, and I am not answering.
The Chairman: I asked you if you honestly believed that, if you gave a truthful answer to the question: Where were you born? a truthful answer might tend to incriminate you.
Mr. Battaglia. I answered it.
The Chairman: You haven't answered this question, and, with the approval of the committee, the Chair orders and directs you to answer the question as to whether you honestly believe that, if you gave a truthful answer to the question: “Where were you born?” a truthful answer might tend to incriminate you.
Mr. Baitaglia: I answered it.
The Chairman: You have not answered it, and the Chair holds you have not answered it, and you are under orders and direction of the committee to answer it.
Mr. Battaglia: I just told you; I read this off this paper, and I answered you.
The Chairman: You haven't read off that paper when I asked you if you honestly believe.
Mr. Battaglia: I refuse to answer on the ground that it may tend to incriminate me. Does that answer your question now?
The Chairman: That doesn't.
Mr. Battaglia. That is my answer.
The Chairman: All right, let the record stand. Proceed, Mr.
Kennedy.
Mr. Kennedy: Have you ever been arrested?
Mr. Battaglia: I refuse to answer on the ground that it may tend to incriminate me.
The Chairman: The Chair, with the approval of the committee, orders and directs you to use the word "decline" instead of "refuse."
Mr. Battaglia: All right, decline.
The Chairman: Can you say it with any more contempt?
Mr. Battaglia. What is the matter with "refuse", that is a word too, isn't it?
The Chairman: Proceed.
Mr. Kennedy: As we understand it, Mr. Battaglia, your specialty is armed robbery, is that correct?
Mr. Battaglia: I refuse to answer on the ground…on the ground it may tend to incriminate me.
Mr. Kennedy: You are back on "refuse."
Mr. Battaglia. What is the other word?
The Chairman: The other word is "decline," and it is a little more respectful.
Mr. Battaglia: All right, decline.
Mr. Kennedy: Now, did you know Estelle Carey? Did you know that young lady?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Were you arrested in connection with Estelle Carey in 1943, in connection with her being bludgeoned and burned to death?
Mr. Battaglia: I decline to answer on the ground that it may tend to incriminate me.
Mr. Kennedy: You and Marshall Caifano at that time were arrested in connection with her murder?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Can you tell us anything about the murder of Estelle Carey?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Then tell us about Alexander Chase, could you tell us anything about him?
Mr. Battaglia: I decline to answer on the account it may tend to incriminate me.
Mr. Kennedy: You were also arrested in connection with his murder, were you not?
Mr. Battaglia: I decline to answer on account it may tend to incriminate me.
Mr. Kennedy: Now, our interest in you, Mr. Battaglia, is your relationship with Mr. James Weinberg, and Paul "Needle Nose'' Labriola. Could you tell us anything about James Weinberg and Paul "Needle Nose" Labriola?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy. Did you know "Needle Nose" Labriola?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Now, when Labriola and Weinberg were making arrangements for setting up this association, they had to go or it was suggested that they get in touch with you, and the man in overall charge of it was Sam "Golfbag" Hunt, but that you were in charge of the West Side, is that correct ?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: And the man that they had to be solicited on the South Side was Bruno Roti, is that correct?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Now, according to the testimony yesterday, what developed was that the group of "Needle Nose" and Weinberg failed to get your permission when they moved in on the West Side, and so you became very angry, is that correct?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: And because you got angry, Bruno Roti also with' drew his support from the South Side, is that right?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: And you all work those things out together, do you Mr. Battaglia, a little club among yourselves?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: And then an instance was given where Marshall Caifano's brother was killed in the attempt to kidnap Theodore Roe. His name was "Fatty" Leonard, is that right?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: And because Roe had killed "Fatty" Leonard when they were trying to kidnap him, Roe was later killed out in Chicago, is that correct?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: And according to the testimony yesterday, you were in on the job of killing Roe, is that correct?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Did you have anything to do with killing Roe?
Mr. Battaglia: I decline to answer on the ground it may tend to incriminate me.
Mr. Kennedy: Well, Mr. Chairman, this witness doesn't want to seem to help much.
The Chairman: Are there any other questions? You will remain under your present subpoena subject to being recalled for further testimony. Where can we notify you?
Mr. Battaglla: At home.
The Chairman: Where is your home?
Mr. Battaglia: 1114 North Michigan.
The Chairman: You will remain under your present subpoena.
Mr. Battaglia: You mean I can go home now?
The Chairman: Upon reasonable notice, you can expect to reappear before the committee at such time and place as it may designate to give further testimony.
Mr. Battaglia: Yes, sir.
The Chairman: You will remain here for the remainder of the day, and we may want to recall you.
Mr. Battaglia: All right.
The Chairman: Do you agree to remain under the present subpoena to return, do you?
Mr. Battaglia: I have got to, you are telling me to stay here, and what do you want ?
The Chairman: What is that?
Mr. Battaglia: You are telling me to stay here?
The Chairman: I said for the present, but when you are excused today you will remain under the same subpoena, and you agree to that, do you, and to return whenever the committee desires to interrogate you further?
Mr. Battaglia: I suppose, I don't know.
The Chairman: What is that?
Mr. Battaglia: I suppose. Am I supposed to agree to it? I don't know.
The Chairman: Well, we can put you under another subpoena right now, if you want to do that.
Mr. Battaglia: I will agree.
The Chairman: You will agree?
Mr. Battaglia: Yes, sir.
The Chairman: Very well.
Mr. Battaglia: Yes.
The Chairman: All right, stand aside.
