When Lepke surrendered, to be turned over to J. Edgar Hoover, he understood the boys put in a “fix” so he would be tried on federal charges and not turned over to Brooklyn’s crusading District Attorney, Bill O’Dwyer, on the Murder, Inc., rap, which meant the chair in Sing Sing.
But Hoover would have nothing to do with such a deal, and gave him up to New York State. Lepke was convicted of first-degree murder. He knew he had been railroaded by the Mafia, which had wanted to get rid of its Jewish partner. He threatened to blow the whistle, and was promised leniency if he would talk. His wife, an attractive brunette, went to see him in his cell and told him her life had been threatened, she would be croaked if he spilled. That was not so. Lepke loved her, so he went to the hot seat with his lips sealed to protect her.
Most of his illegal profits had been stashed away in secret safe deposit vaults. He told her where they were. While Lepke was in the death-chamber, his wife was often seen with Arthur Jawitz, a slick-looking young guy, who had attracted the attention of the Feds when they were looking for Lepke, whose bed he was keeping warm.
Shortly after Lepke’s electrocution, his widow married the black-haired young man, and set him up in the men’s clothing business. They changed their name to Jarwood. The underworld says Lepke left her $20,000,000 in U.S. currency. A former wife of Jawitz showed up, charged he had married Betty Buchalter bigamously. She said Betty was “keeping” Jawitz while her gangster husband was still alive.
After the Kefauver Committee quizzed Lou Wolfson, head of the Capital Transit Company, which owns the street-cars and buses in Washington, seeking gangster-ties, it went no further. There was no evidence. Wolfson, who lives in Jacksonville, Florida, says he is a legitimate businessman. We have no knowledge to the contrary. But it was developed under oath at a Senatorial hearing that Wolfson and one William B. Johnston had, between them, raised a fund of half-a-million dollars for the campaign of Florida’s governor, Fuller Warren. Wolfson and Johnston each put $154,000 into this private, special campaign kitty, and were intimately associated during the campaign. Johnston is president of Sportsman’s Park racetrack in Chicago, and several dog-tracks in Florida, which were owned by the late Al Capone. Johnston makes frequent payments to Capone associates as “loans.” He admitted he had been associated with mob-owned enterprises.
Another witness, Leo J. Carroll, testified that it was general knowledge in 1948, that with the election of Governor Warren, one-third of whose campaign Wolfson financed, “the Mob would take over Florida.” It did.
A few months after Wolfson secured control of the Washington transit system, he was permitted to raise the fare to 15 cents a ride, on the plea of extreme poverty. Right after that, the company doubled its quarterly dividends from 50 cents to $1 a share. Company stock scored a sensational advance, reaching $39. When Wolfson landed control he bought 109,000 shares at $20.
Wolfson’s campaign to buy the local transit system was authorized by the ICC and the Securities Exchange after an adverse recommendation of the examiner and over opposition of minority stockholders. In less than ten months, the Wolfson group succeeded in dominating the board of directors and placing its own men in strategic executive spots, one of whom is Frank E. Weakly, president of the Wardman Park Hotel.
Now the SEC has granted Wolfson permission to sell some of his stock at the inflated price, which gives him the company and his money back. At this writing, he is negotiating to buy the Washington Redskins from George Marshall.
You can feel the presence of the mob in Washington. You can see evidence in many directions that it is there. John L. Laskey, immediate past president of the District Bar Association, resigned the chairmanship of its law enforcement committee because he had represented three witnesses called before the Senate Crime Investigating Committee in connection with Florida gambling. He was a former U.S. attorney.