Arthur Simon Flegenheimer was born on August 6, 1902 in the
Bronx. His parents were both German Jews. His mother, Emma had tried
to raise little Arthur in the orthodox faith. Her efforts were not
entirely in vain, in later years Schultz would develop respect for
his religious upbringing. At different stages of his life he claimed
to be Jewish, Protestant and Catholic. It was not uncommon for him
to turn to religion at times of crisis during his career.
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Dr. John F. Condon |
Growing up in the tough Bergen and Webster Avenues section of the
Bronx, Flegenheimer joined a street gang for protection and to be
part of a cohesive group in which he could make a name for himself.
He attended Public School 12, where the principal, Dr. J. F. Condon,
would one day gain notoriety by delivering the Lindbergh baby ransom
money to Bruno Richard Hauptmann.
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When Flegenheimer was fourteen, his father left home. What effect
this had on the young man is hard to determine. Shortly after this
desertion though, Flegenheimer quit school. Schultz never admitted
that his father abandoned the family. He preferred to tell people
that his father was a fine person and died during Schultz’s
teenage years. Working a variety of odd jobs, Flegenheimer soon realized that an
honest day’s work was not going to make him happy…or rich. He
began hanging out at the Criterion Club where Marcel Poffo, a local
hoodlum whose police record included bank robberies and extortion,
befriended him. Hoping to impress his mentor, Flegenheimer began his
criminal career by holding up crap games that refused to pay a
percentage to Poffo.
At the age of seventeen, Flegenheimer received his first and only
prison sentence. Arrested for burglarizing a Bronx apartment,
Flegenheimer used the name Charles Harmon (an alias he would
continue to use). He was sent to Blackwell’s Island, a brutal
prison located in the middle of the East River. It later became
Welfare Island and today is known as Roosevelt Island. Flegenheimer
was not an ideal prisoner, and the experience certainly did nothing
to rehabilitate him. In fact he was so unruly that he was
transferred to a tougher prison, Westhampton Farms, from where he
escaped for a few hours. He was returned and an additional two
months were added to his sentence. Upon his return to the Bronx, his
old Bergen Gang buddies anointed him “Dutch Schultz,” much to
the chagrin of his loving mother.
By the mid-1920s, Schultz realized that bootlegging was the way
to make serious money. He got involved in the beer trade working as
a strong-arm goon for some of the bigger operators. He once drove a
beer truck for the legendary Arnold Rothstein, and at one time he
and Charles “Lucky” Luciano were members of the Jack “Legs”
Diamond gang.
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Dutch Schultz early in his career |
In early 1928, Schultz was bartending in a speakeasy owned by
childhood friend Joey Noe (pronounced Noy or Noey, depending on
whose book you read). While working here Schultz gained a reputation
for brutality when someone triggered his temper. It was perhaps this
ruthlessness that made Noe admire him and take him on as a partner.
The two men were soon on their way to building a beer empire in the
Bronx and beyond.
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With the profits from their speakeasy they opened more
operations. They began to purchase their own trucks to avoid the
delivery cost of wholesale beer. The beer for their operations was
obtained from Frankie Dunn, a Union City, New Jersey brewery owner.
Schultz would ride shotgun to protect his trucks from being
hijacked.
The two partners realized they could increase their profits by
supplying beer to their rivals. If speakeasy owners turned down
overtures to purchase beer from the Schultz/Noe combine, they were
soon warned to buy it, or else. Joe and John Rock were brothers who
decided to play hardball with Schultz. John quickly stepped aside,
but his stubborn Irish brother refused to give in. One night Joe
Rock was kidnapped by members of the Schultz / Noe gang, and
brutalized. Rock was beaten and hung by his thumbs on a meat hook.
The gang allegedly wrapped a gauze bandage over his eyes that had
been smeared with the discharge from a gonorrhea infection. His
family reportedly paid $35,000 for his release. Shortly after Joe
Rock went blind.
These tactics instilled fear among Schultz’s competitors and
heightened his reputation for utter ruthlessness. It also made it
easy for the partners to muscle in on the beer trade in the Bronx.
As the operation grew, new beer suppliers were needed to fill the
orders the gang was receiving. In addition, they began to attract a
group of enforcers who would soon make a name for themselves. Among
this group of toughs were Abe “Bo” Weinberg and his brother
George, Vincent Coll and his brother Peter, Larry Carney,
“Fatty” Walsh, Joey Rao, and Edward “Fats” McCarthy.
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Jack "Legs" Diamond (POLICE) |
The operation, which began modestly in the Bronx, was now
expanding over to Manhattan’s upper West Side into the
neighborhoods of Washington Heights, Yorkville, and Harlem. Schultz
and Noe moved their headquarters out of the Bronx and onto East
149th Street in Manhattan. However, the gang’s move to Manhattan
brought them into direct competition with Jack “Legs” Diamond.
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The response from the Diamond gang came quickly. At seven
o’clock on the morning of October 15, 1928, Diamond’s men
ambushed Joey Noe outside the Chateau Madrid nightclub on West 54th
Street near Sixth Avenue, while Schultz was rumored to be meeting
with rumrunner William V. “Big Bill” Dwyer. Although Noe was
wearing a bulletproof vest, slugs ripped through his chest and lower
spine. Noe apparently got off a number of shots in return. Witnesses
reported seeing a blue Cadillac bounce off a parked car, losing one
of its doors before speeding away. When police found the car an hour
later, they discovered the body of Diamond gunman Louis Weinberg (no
relation to Bo and George) dead in the back seat.
Noe was rushed to Roosevelt Hospital. Despite a valiant effort by
the hospital’s staff, Noe slowly faded away. By the time he died,
three weeks later on November 21, he weighed a mere ninety pounds.
In Paul Sann’s excellent biography, To Kill the Dutchman, he
discusses Schultz’s feelings about Noe’s death:
“There is no question that Schultz was crushed. Noe was the
closest intimate of all his days. He might have drawn some
inspiration from a hoodlum like Marcel Poffo, but Noe, who always
called him Arthur, as when they were kids on the street corner
without a care in the world, put him on the golden highway. When Noe
was with him, he could give the armed guard a night off, and Noe for
that matter, was the only one he ever took along when he went to see
his mother.”
In the wake of the shooting of Joey Noe, Schultz was bent for
revenge. On November 4, 1928, the financier of the New York
underworld, Arnold Rothstein, was shot in the Park Central Hotel and
died two days later. While the most common theory for the murder was
that Rothstein had welshed on a gambling debt to George McManus, it
was rumored that Schultz may have been involved because of
Rothstein’s friendship with Diamond. Perhaps supporting this
theory was the fact that the first person McManus called after the
shooting was Schultz attorney, Richard J. “Dixie” Davis. After
the phone call, Schultz associate, Bo Weinberg picked up McManus and
spirited him away. McManus was later cleared of the killing.
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Bo Weinberg
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Another theory involved Diamond because he felt Rothstein had
double-crossed him in a recent narcotics deal. Whatever the case,
when Diamond, the so called “clay pigeon of the underworld” due
to the number of times he was shot, met his demise on December 18,
1931, Bo Weinberg’s name was connected to the murder.
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Schultz was then on his own. He would never again have a partner
and he moved freely in the New York underworld as an independent
operator. By the late 1920s his influence became so great that he
was invited to meetings called by Lucky Luciano and his associates
as they began to build a national organized crime structure.
At one of Luciano’s meetings the importance of police and
political payoffs was being discussed. A vote was taken and everyone
agreed with Luciano that more money should be expended for
protection, except Joe Adonis. Schultz, suffering from the flu, sat
alone in a corner of the room so not to spread his germs. Adonis
stood looking at himself in the mirror and combing his hair. He then
wheeled around and, referring to himself, said, “The star says
yes.” With that, Schultz darted across the room, grabbed Adonis in
a headlock and breathed heavily into his face.
“Now, you fuckin’ star, you have my goims,” roared Schultz.
The others howled with laughter. However, Adonis did get the flu
and was grounded for a week.
In May 1929, Schultz participated in the Atlantic City
Conference. The meeting was attended by dozens of mobsters of
various ethnic and religious backgrounds from around the country.
The main topic of the conference was cooperation between the gangs
and the cities they represented, and to discuss plans for the day
Prohibition was repealed.
Due to his working relationship with Luciano, when the
Castellammarese War began in February 1930, Schultz was aligned with
the forces of Giuseppe “Joe the Boss” Masseria. Opposed to the
Masseria faction was Salvatore Maranzano who was actively seeking to
become the “capo-di-tutti-capi,” boss of all bosses. The war
raged on for fourteen months until Luciano setup Masseria to be
murdered in a Coney Island restaurant. Not satisfied with the spoils
of war, Maranzano put together a hit list of people he wanted out of
the way. On the list were Luciano, Adonis, Frank Costello, Vito
Genovese, and Schultz himself. Hired to carry out these murders was
Vincent “the Mad Mick” Coll, who at the time was in the middle
of a gang war with Schultz.
When Luciano was informed of the hit list from traitors inside
the Maranzano organization, an assassination team was put together
to murder the treacherous newly crowned boss of bosses. The hit
squad dressed as police officers, murdered Maranzano in his Park
Avenue office on September 10, 1931. Rushing out of the building,
one of Maranzano’s employees ran into Coll and warned him to
leave. The “Mad Mick” was on his way to a meeting with
Maranzano. Reported to be part of the hit squad was Schultz’s man
Bo Weinberg.
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