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CHAPTER III
ORGANIZED TERRORISM

From what has been related so far, I presume the reader may gain some idea of the dangerous type of men whom I refer to as members of the Black-Hand Society.

You are now familiar with the kind of punishment meted out to one whom the gang suspects of having betrayed a member. You have also been acquainted with the Sicilian custom of revenge by way of an actual example showing how the slayer of the man in the barrel came to his end in a manner that is as certain as daylight follows darkness. It is the racial idea of the antique Hebrew law, "An eye for an eye and a tooth for a tooth." The Sicilian "vendetta" demands a life for a life. You may have noted further that the police of New York and the machinery of the law failed to track down the slayer of the man in the barrel. A circumstance that makes it singularly difficult for the authorities to cope with this type of criminals is that the Sicilian does not ask the police for help when a member of his family is murdered. He keeps it quiet. And as quietly a blood relative of the slain person assumes the responsibility which we Americans place on the police and the courts. The end of Petto, the Ox, shows exactly what happens when individual vengeance succeeds in place of justice meted out by a court of law.

The reader will remember that when the criminal band, which the police rounded up in connection with the barrel murder, were turned out by the police magistrate, because there was insufficient evidence to hold them for the murder of Benedetto, the suspects dropped out of sight as far as the police of New York were concerned.

The Secret Service kept its eagle eye on them, however. Every suspect was carefully "shadowed" by a special operative. We expected that they would gravitate back to their haunts, and they did. We spotted them in such places as the café of Pietro Inzarillo, at No. 226 Elizabeth Street, and in the dark, little Italian grocery shop of Ignazio Lupo, at No. 8 Prince Street, which is just around the corner from Inzarillo's place. We also located suspects loafing around the dingy, garlic-smelling restaurant of Giuseppe Morello, tucked away in the rear of Lupo's grocery shop, like an evil thing afraid of the light of day.

Criminals wanted by Uncle Sam are not suffered to drop from the sight of the Secret Service. Members of this gang were busy in the counterfeit money line. The government was necessarily interested in following their movements. Consequently I stayed right on the job with my men at trailing and spotting the suspects. After a while I had in my possession quite a neat bundle of facts that gradually disclosed to us the impulse and the motives behind this crime-hardened gang of men. I say without the slightest hesitation that the basic, underlying motive of these men is a fierce and uncompromising passion to get rich quick. That is what makes them murderous criminals. It is the same get-rich-quick impulse that we find among unscrupulous business men and gamblers, but it is of a much more dangerous caliber and pregnant with every sinister motive to the most horrible and debased forms of crime. It is true that the "Black-Handers" got a pretty good start in this country before the authorities were alive to the danger, but it is also true that the Secret Service did finally succeed in rounding up the leaders and their henchmen, reducing the nefarious operations to a minimum. Had this not been done just about the time it was actually done, the "Black-Hand" Society would have increased its stranglehold upon the population to a point where the police might not have been able to guarantee the personal safety of the citizens. Even at the present time, when the authorities may be said to have the situation well in hand, the danger of renewed "Black-Hand" activities by other groups would not be removed if the Secret Service were to relax its vigilance for ever so short a time. The threat of Bolshevism, already flaring upon the horizon, as a menacing torch over murder-maddened mobs defying law and order, would be a welcome brother. In the chaos created, if the Red Bolsheviks should ever succeed in demoralizing this country, the malefactors of the "Black-Hand" Society would thrive as maggots in a cheese. A mixed brand of terrorism would soon show its evil head, a mixed brand that would bring every decent citizen to shudder at the mention of BLACK BOLSHEVISM.

In looking into the motives of the men who represented the Sicilian Mafia, or "Black-Hand" Society, in this country, I was fortunate to elucidate not a few particulars that go to show how these criminals actually operate.

The Black-Handers here would terrorize their less courageous countrymen from the provinces of Southern Italy. They had been at this form of blackmail for some years. Lupo and Morello were the leaders. The money obtained by blackmail and threats of various kinds was divided among a few men, but most of the funds went to Lupo and Morello. As fast as Morello got money he would farm it out by acquiring a barber shop or set up a man in a shoe repairing shop. He also invested in several Italian restaurants. Lupo was in the habit of putting his money into Italian grocery stores. He soon became one of the greatest importers of olive oil and Italian lemons in New York City. It is known that more than $200,000 was accumulated by the two leaders in a few years. This estimate is based on testimony submitted by people who have complained since of the way in which they were terrorized.

Lupo and Morello were an ideal combination to force leadership upon the "Black-Handers" in this country. Morello was the rough, bearish and hairy-looking monster, cruel as a fiend, and always unshaven. Lupo was the well-dressed, soft-spoken, slick-looking "gent" of pretended refinement. He, too, was cruel and heartless. Lupo was the business man of the two. Morello had in his make-up more of the cunning of the born criminal. He was cautious like the fox and ferocious like a maddened bull. Lupo was always suggesting new business ways for the investing of the blackmail money. To Lupo's scheming brain can also be traced the proposition to build a tenement house with such funds as he and Morello could spare from the various barber shops and the importing ventures in which they were interested.

They built one tenement house and sold it at a profit. They built several other tenement houses and likewise sold these at a profit. Every time they would take the money and reinvest in more buildings. It was also at Lupo's suggestion that a scheme was concocted to form an association for building purposes with the object of selling stock in the association to Italians from Southern Italy only and exclusively. The association was called the Ignatz Florio Association of Corleone.

The main purpose of this association was to accumulate sufficient funds to erect two rows of Italian tenements in One Hundred and Thirty-seventh Street and One Hundred and Thirty-eighth Street and Cypress Avenue, in the Bronx. Stock in the association was placed on sale for three dollars and five dollars per share. When the dividends came due, payment was made or the dividend turned over to the account of the holder of the stock. The tenements went up in quick succession.

Lupo and Morello finally succeeded in getting the control of the association entirely in their own hands. They used the funds to develop their business ventures, Morello specializing in barber and shoe shops, Lupo sticking to his olive oil importing enterprise. Some of the contractors who put up the tenements were paid, and some were not. Those who had furnished materials for the buildings received some manner of payment, but there were several who got nothing. Law suits began to threaten the two leaders. The holders of the stock began to inquire rather insistently about dividends.

At this juncture, Lupo and Morello stuck their heads together and hatched a deep-dyed scheme for making counterfeit money. They would establish a large counterfeiting plant. They would take the counterfeit stuff and give it to the stockholders in the association. For every thirty-five cents which the association owed to a holder of stock Morello and Lupo would give one full dollar in counterfeit money. The person receiving the counterfeit money would be obliged to dispose of it according to the directions given by Lupo and Morello, who held themselves competent to instruct the members of the association so that the bad money could be disposed of without risk of arrest. This counterfeiting scheme was hatched in the summer of 1908 in the rear of Morello's evil-smelling, dingy little spaghetti joint.

CHAPTER IV
COUNTERFEIT BILLS APPEAR

In May, 1909, counterfeit two-dollar and five-dollar bills began to appear in many of the large cities, such as New York, Philadelphia, Pittsburgh, Buffalo, Chicago and Boston. Some of the bills were distributed as far away as New Orleans. The simultaneous appearance of the bills in so many different cities indicated quite plainly that a large band was operating in the distribution of the bad money.

Ever since Lupo and Morello and his associates were arrested in 1908, and were turned out by the Police Magistrate because there was not sufficient evidence to hold them for the barrel murder, I had not lost sight of them. They were being trailed all the time, day and night. As a result of my watchfulness, I learned many things that have since proven to be very useful to the government in its efforts to keep the counterfeiting of money down to a minimum.

Among other things, I learned that Morello made frequent trips to Chicago and other cities where the counterfeit money seemed to flourish. Morello made a flying trip to New Orleans on one occasion when my men tracked him all the way. When his train arrived in Philadelphia we knew he was on board; when the train reached Baltimore we knew he was on the train, and when he arrived at Washington we knew where the "Black-Hand" leader was; and so on, till he arrived in New Orleans. On his arrival there certain Italian confederates were waiting for him and escorted their chief to a little Italian café where a conference was held in a back room lasting a little longer than two hours. Immediately after the conference was over, Morello took the next train back to New York.

Now enters into the story a man by the name of Antonio Cecala. Remember the name of this man, for he plays an important part in the game for the remainder of the story. Cecala, whom we will establish here as the third executive bandit in the Lupo-Morello group, made trips to Philadelphia, Pittsburgh and Buffalo. Cecala proved a valuable aid to the two "Black-Hand" captains.

Lupo was tracked by Secret Service men to cities where the counterfeit money was circulating. Another thread of investigation disclosed the not unimportant fact that there were members of the Ignatz Florio Association scattered all over the United States, especially in the populous centers where the five- and two-dollar counterfeit bills were being circulated. Besides, I was getting information daily from banks and merchants that the bills were being "pushed on the market" in abundance. I also learned that Italians from Corleone, Sicily, were the only Italians who were trusted in these centers by the Morello-Lupo gang, pointing to the probability that the bad bills were being circulated and "pushed" through native Corleonians exclusively.

Another clue showed that the bills were being manufactured somewhere in the immediate vicinity of New York City. I fine-combed the State of New York upon learning this. Naturally, my attention was focused on the Corleone Italians in New York City. In this way I gathered that Lupo had fled from his creditors, to whom he owed money in connection with his Italian grocery stores business. I finally succeeded in locating him living in Ardonia, New York, which is not very far from Highland on the Hudson River.

Past experience with these Morello-Lupo counterfeiters had taught me not to make an arrest until I had the net completely woven around the men who made the money. It is futile to arrest the "pushers-of-the-queer" – that is, the men who distribute the bad money among the little Italian grocery stores and shoe shops, small merchants, and the like. The arrest of these men only serves to warn the manufacturers of the bad money that the Secret Service is on the trail. The factory then closes down, and it is moved away to another location. Even if a conviction of the distributor of the bad money is obtained, no definite information can be obtained from the convicted man. He could not tell the government anything of value even if he wished to "squeal." As a rule, all that a "pusher" or distributor can tell is where he got the bad money.

Here is where Antonio Cecala looms up as a very important criminal factor in the counterfeiting game as plied by the Black-Handers under the leadership of Lupo and Morello. Remember this: Lupo and Morello always remain in the background. Cecala was the connecting link between the two leaders and the "pushers-of-the-queer."

Cecala was the man who got in touch with those who wanted to buy the counterfeit money to circulate it at the rate of thirty-five cents on the dollar.

Cecala was careful to deal only with men whom he knew – men who were from Corleone. He would pick six of these as his deputies. These deputies would choose six others, and so on. Cecala made business trips to other cities and took the orders for counterfeit money. He also had the say as to whom should be the agent in each city directly responsible to him. These various deputies were required to give their O. K. before any money would be sent to or given to any person by Cecala.

As soon as Cecala would receive a request from a deputy for money to be passed to certain Italians asking for it, it was Cecala's job to go to Lupo and Morello and obtain their sanction before the money would be handed along down the line from the distributing plant to the person buying it at thirty-five cents on the dollar for the obvious purpose of "pushing" it off on some unwary store-keeper.

The reader can now readily appreciate that with a crafty organization like this the "pusher" could not testify, even if he desired, that he had got the bad money from either Lupo or Morello. In fact, the "pusher" never even heard of either of the leaders except in some indirect way. Always, however, when the money was passed over to the pusher by one of Cecala's deputies or remote subordinates a sinister warning was given not to "squeal" if caught – a warning always portentous with the threat of murder.

To "squeal" meant fatal punishment. The man in the barrel is grim testimony to that fact.

At about this time I had pretty good evidence that the leaders of the counterfeiting gang were none other than Morello and Lupo, as I had suspected from the outset. Still, the time was not ripe to make arrests that would result in dead-sure convictions. It is true the two leaders could be arrested and charged with the making of these counterfeit notes, but where was the evidence connecting them with either the passing or the manufacture of the bills?

Let me here recite the case of Giuseppe Boscarini just to help the reader appreciate how very difficult it would be, at that juncture, to get Lupo and Morello involved in a way that would satisfy a court and jury that they were legally guilty of making and of passing counterfeit money:

While in Pittston, Pa., I learned that a man in that city named Sam Locino knew Boscarini, a New York agent of the Black-Hand Society. After talking with Locino for some time he told me that Boscarini had made several trips to Pittston lately, and that Boscarini was willing to sell counterfeit money to him. When Locino mentioned Boscarini's name I felt sure that the Pittston man was talking of one of Cecala's most active deputies.

In order to see how far Locino could go with Boscarini, and whether Cecala's deputy would turn counterfeit money over to Locino, I made the latter write a letter in the Sicilian dialect to Boscarini asking the deputy of Cecala to send a sample of the counterfeit money in order that Locino might see what it was like and whether he thought he would be able to get rid of some of it in Pittston.

When Locino had finished the letter I took it over to the post office, and with the Mayor of the city and the Chief of Police as witnesses I had the letter registered and addressed to Boscarini. I came back on the same train that brought the letter to New York, and when Boscarini signed for it at the registry window, this act of his was noted down by men of the Secret Service.

The next day Boscarini went to a sub post office on the Bowery and bought a special delivery and a two-cent stamp. He placed the stamps upside down on a large white envelope. An agent of the Service saw him buy the stamps and place them on the envelope; also, the agent saw the fictitious return address which Boscarini put on the envelope: the agent saw this as Boscarini put the letter into the slot at the sub-station.

I returned to Pittston on the same train with the letter and notified Locino that the letter was addressed to him at the General Delivery. He got the letter and opened it in my presence. It contained a counterfeit two-dollar bill and a counterfeit five-dollar bill of the kind made by the Morello gang.

Then I sent Locino to New York and gave him thirty-five dollars with which to buy one hundred dollars' worth of the counterfeit money from Boscarini. I saw to it that the genuine money was secretly marked for the purpose of "getting" it on some member of the gang when the raid would come and in which I contemplated taking Morello and Lupo together with Cecala, Boscarini and others.

Locino contrived to meet Boscarini at Mulberry and Prince Streets, and the two talked it over. An appointment was made by Boscarini to meet Locino again on the same day.

One of the things I had ferreted out meanwhile was to locate the headquarters for the distribution of the bad money as being at No. 231 East Ninety-seventh Street. Secret Service men had hired apartments across the street from this place, and were watching every one that entered and left the place. Their view was interfered with by great boxes of macaroni and other Italian groceries piled high in the windows of the store. My men also learned that it was here, behind the macaroni boxes, that secret conferences were being held between Cecala, Morello, Lupo and others. A conference would never last more than fifteen minutes. The store was run by Morello, Lupo and others. It was a wholesale store. The small Italian grocers in New York were compelled to make their purchases there at the peril of being wrecked by a bomb if they did not. To this store went Boscarini when he left Locino at Mulberry and Prince Streets. At the Ninety-seventh Street store Boscarini met Cecala and several others of the gang. Returning to meet Locino, Boscarini handed over a roll of bills to the Pittston man. Secret Service men saw the bills handed over. Locino handed the bills to me. When the bills were examined they were found to be counterfeits of the same make as those previously sent to Locino in the letter.

Even then we made no arrest. It would have been a foolish piece of business at that time, for I was busy on other ends of the case pulling in valuable threads of evidence. After the lapse of a week Locino came to New York from Pittston and purchased more of the counterfeit money from Boscarini, giving in return genuine money, which was secretly marked.

Finally the time arrived when the government had evidence which was deemed sufficient to convict most of the band. The raid was made. When Cecala was seized and searched there was found on him two of the genuine bills with the secret marks which I had placed on the bills given to Locino.

Locino's testimony, the reader will see, was necessary in order to secure a conviction of Boscarini and Cecala. By Locino's telling what part he had played in the game the government was put in position to verify the following complete chain of evidence: Locino writing the letter to Boscarini and asking for the counterfeit samples; Boscarini receiving the letter, and receipting for it; Boscarini posting the answering letter to Locino, the letter on which the Secret Service man saw the stamps placed upside down on the long white envelope. Then, further, Locino receiving the letter at the General Delivery, and his opening it in my presence and finding the counterfeit two- and five-dollar bills. Locino could testify that he got counterfeit money from Boscarini and had given him the genuine money secretly marked in return for the spurious bills, thus directly connecting Boscarini with the charge of passing spurious money. Also, Locino could verify my testimony of secret marks being placed on the bills, so that when the marked bills were found on Cecala, Locino could identify them as the ones he had given to Boscarini in return for the counterfeit money passed by Boscarini to him. Locino could thus connect Boscarini and Cecala. Other evidence connecting Cecala with Boscarini was in my possession, but which I need not give here. It merely served to corroborate the testimony of Locino.

Locino was perfectly well aware what it meant to go on the witness stand and "squeal." He had heard of the man in the barrel. After some weeks of thinking the matter over Locino loosened up and declared that he had an ancient wrong to right! He never explained to me further just what his grievance against the "Black-Handers" was. He finally made up his mind to take the stand and tell what he knew.

Needless to say that Boscarini was sentenced to fifteen years in the Federal Penitentiary at Atlanta, Georgia. But it is worth mentioning here that shortly after Boscarini received his sentence Locino was shot twice in the back of the head at Pittston. He survived, however, and is confident that he will be able to take care of himself for many years to come.

The point I want to make clear by relating this story of facts is as follows:

I traced the connection of Cecala with the passing of these counterfeit bills by finding the genuine money with the secret marks on him. Nevertheless, I had not reached the leaders, Lupo and Morello, who were still in the background serenely confident that they could not be legally implicated in the passing or the manufacturing of the counterfeit bills.

True, we could prove that Cecala and Morello and Lupo had met many times, and that they had been to the houses of one another and eaten at the same table. Other evidence of a like nature could be produced; but such evidence was not sufficient to convict the two leaders of the charge of either passing, having in their possession, making or causing to be made, any of the counterfeit notes which were being poured into the great centers of population at one and the same time. Had I stopped with Locino's testimony, I never could have got the leaders. But the Secret Service never leaves the trail of the counterfeiter, and the way in which the long arm of the government reached out for the "Black-Hand" leaders, who loomed in the shadowy distance like the silhouettes of devils incarnate, will be told here for the first time.