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Evening star. [volume] (Washington, D.C.) 1854-1972, July 31, 1951, Image 5

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Crime in America
Business and Underworld Link
Noted in Detroit by Probers
By Estes Kefauver
Former Chairman of Senate
Crime Committee
CHAPTER 14
An alarming aspect in the pat
tern of crime in America is that
certain manufacturers have delib
erately allied themselves with
racketeers as a means of con
trolling labor relationships.
In Detroit, the Senate Crime
Committee turned up four in
This is the 14th of a series of 20
articles condensed from the book,
"Crime in America," by Senotoi
Aefouver.
'tanoiS in which large industrial
concerns awarded lucrative con
tracts to gangsters or men who
had anderworld connections.
Typical was the link between
Santo (Sami Perrone and the
Detroit-Michigan Stove Co. The
bespectacled, balding Perrone once
served a six-year sentence for
violating the prohibition laws, and
both he and his brother, Gaspar,
had been arrested for questioning
on murder charges, though later
released. Ironically, Santo had a
license to carry a revolver at the
time we questioned him. It was
promptly revoked by Detroit au
thorities
Started in Stove Works.
Perrone barely can read and
write English. He went to work
more than 40 years ago as a core
maker for the stove works, per
haps the largest non-union plant
In the area. Perrone insisted he
never even had discussed labor
problems with John A. Fry, com
pany president, and Mr. Fry tes
tified he never had heard of any
labor difficulty or any physical
violence at the plant.
aiUUilU l«7in, IIUWCVCI, LI1CIC
. was a serious strike when a union
made a strenuous effort to or
ganize the stove works. Twelve
years later. Fry told a grand jury
investigating labor rackets that
during the dispute “I talked with
some of the fellows in the plant,
including the Perrones. and I
wanted to know whether or not
we could get some help to come
in. and they said they thought
they could.
"There was some fights outside
the gate on the part of the pick
ets ^attacking the men w’hen they
came in to lunch. I think after
the first day we had 75 or 80
policemen around the plant.”
Netted Over $40,000 a Year.
Shortly after this violent strike,
Santo Perrone, the coremaker,
was given a contract to purchase
and haul away the scrap from
the stove works. Thus, the illiter
ate manual laborer acquired an
income which in recent years has
netted him between $40,000 and
$65,000 a year. He lives in a lux
urious mansion, drives a costly
car, and has been able to lend
large sums of money.
The company also toe* care of
Santo’s brother, Gaspar, changing
its coremaking department to a
subcontractorship. Using com
pany materials and the same:
company-owned equipment with
which he had worked as an em
ploye, Gaspar became the con
tractor who supplied the factory
w ith sand cores.
Later, Santo and Gaspar were
sent to the penitentiary for il
legally manufacturing whisky.
The company kept Santo's scrap
contract in effect for him while
he was in prison. Also, while the
Perrones were imprisoned, the
United Auto Workers, CIO, which
previously had been kept out of
Detroit-Michigan Stove, was able
to organize one of the plants. A
UAW organizer said, though, that
when Mr. Perrone got out of jail,
“the organization disappeared.”
An Immigration and Naturali
zation Service inspector told us
that, while investigating aliens
illegally in the United States, he
learned that 20 such violators
were working at the Detroit
Michigan Stove Co. Gaspar was
questioned by the committee
about a speedboat which he owns
and operates on the Great Lakes
between Michigan and Canada,
but he denied that he ever
smuggled in any aliens.
The Perrone-Stove Works story
fits neatly with that of a larger
plant, Briggs Manufacturing Co
makers of auto bodies. President
Fry of the stove works and Presi
dent William Dean Robinson of
Briggs are close friends.
Son-in-Law Gets Contract.
For approximately 20 years,
Briggs had contracted with an es
tablished firm, Woodmere Scrap
Iron, for removal of ferrous scrap
from the Briggs plant. In 1945,
Santo Perrone’s son-in-law, Carl
Renda, 28, suddenly applied for
the contract.
The contract was taken away
from Woodmere and awarded to
Renda, despite the facts that he
had no knowledge of the business,
no equipment and not even a tele
phone or office where he could
be called.
Then Perrone's son - in - law
turned around and made a sub
contract with Woodmere. the old
contractor, whereby Woodmere
kept right on doing the work.
But Woodmere paid Renda $2.50
a ton more than he had paid
Briggs for the scrap, giving him
an income which has reached
$101,000 a year. As our report
commented: “the inference is in
escapable that what Renda was
being paid for was the service
(‘muscle’) of his father-in-law,
Perrone.”
Six Officials Badly Beaten.
Six prominent officials of the
Briggs union were badly beaten
by unknown persons in the year
that followed granting of the
Renda contract.
Before going to Detroit, the
committee explored in the New
oYrk-New Jersey area the tie-up
between the Ford Motor Co. and
the notorious gangster, Joseph
Dota. alias Joe Adonis. Adonis is
a principal stockholder of the
Automotive Conveying Co. of New
Jersey, which transports automo
biles away from the Ford plant at
Edgewater, N. J.
Because of this, the committee
looked into possible relationships
between Ford's plants in the De
troit area and other racketeers.
We found that the principal haul
away operator was the E & L
Transport Co., in which one An
thony D’Anna, ex-convict and for
mer sugar supplier to bootleg
gers, was a 50 per cent stock
holder. D Anna drew a $27,000
salary from E & L but apparently
he did nothing to earn it.
Got 50 % Share of Agency.
Before acquiring his E & L
stock, D’Anna. through negotia
tions with Harry Bennett, labor
boss for the late Henry Ford, Sr.,
had obtained a 50 per cent share
of a profitable Ford agency in
Wyandotte, Mich.
Bennett, now retired, had as
the committee noted, “employed
virtually a private army recruited
from ex-convicts and criminals
to engage in battles against labor
and in other anti-social activi
ties.” Subpoenaed from his Cali
fornia ranch tor testify, he was a
hostile and difficult witness
When we asked him about the
gang factions in Detroit, he snap
ped: “Do you want me to get mj
head blown off?”
Bennett admitted that, although
he was a key man in one of the
largest plants in the world, he
kept no flies, records or memo
randa of any kind.
In fairness to Ford, our re
port observed that the companj
“is taking vigorous steps to disas
sociate itself from these racket
leer-held contracts.” It now is at
tempting to terminate by some
legal means its deal with Adonis
Sought to Buy Up Stock.
Also in Detroit, the committee
cleared up the mystery of how
Cleveland gamblers acquired ar
important block of stock in a
fatal industry, the Detroit Steel
Corp. Max J. Zivian, president
of Detroit Steel, told us that ir
1944 Detroit Steel merged with
Reliance Steel Corp. of Cleveland
Zivian undertook to purchase
the Reliance president’s stock foi
approximately $580,000. He said
he was in Cleveland when gam
bler-businessman Morris Dalitz
whom he had known slightly
"bumped into me in the street.”
Zivian said he told him that he
was attempting to close a big
deal but was short $100,000
Dalitz, without even looking at a
balance sheet, arranged a bank
loan for the necessary money. So
■ ■■ ■■■ ■■■■ "■ 1 .... ■■ ~
1
the Cleveland syndicate acquired
10,000 shares of Detroit Steel
stock.
Zivian subsequently became
friendly with the Cleveland gam
bler and once took a trip on
Dalitz’ yacht.
! TOMORROW: Philadelphia:
Police tactics in the City of
Brotherly Love.

j Condensed from book. "Crime In
(America." by Estes Kefauver. Cpr. Ifl.il.
! Published by Doubleday. Inc. Distributed
[by General Features Corp.
_ *
1951 Traffic Death Toll
May Increase to 37,800
By th« Associated Prtu
’ CHICAGO, July 31.—The Na
tion’s traffic death toll for 1951
may reach 37,800, the fourth
highest in history, the National
| Safety Council warns.
In the first six months this
year, the council reported, 16,320
persons lost their lives in traffic
accidents, 8 per cent higher than
for the same period in 1950.
The June total of 3,080 was 18
per cent over June, 1950. It was
jthe biggest increase for any
month since July, 1946, and the
second highest June toll on rec
iord.
The council said heavier travel
was responsible for much of the
| increase.
I
Hew Witness Arrested
lit Louisiana Mystery
ly the Associated Press
NEW ORLEANS. July 31.—Part
of the mystery surrounding a man
found dead in a Louisiana swamp
is cleared up, but his identity re
mains a puzzle.
Sam Jones, thei one first identi
fied as the victim, gave officers
his version of how the man died.
Jones said that Donald Easter
wood, once tried and acquitted on
a charge of murdering Jones,
knew the man's name.
Easterwood, 26, was arrested at
his Baton Rouge home after this
disclosure by Jones yesterday and
jailed at nearby Gretna on a
charge of investigation of murder.
He refused to say anything be
cause his lawyers were not pres-i
ent.
Easterwood had been free on
bond as a material witness. He
was first arrested last week after
Jones was found alive in Denver,
Colo. .
John Faulkner, chief deputy
criminal sherifT, said the 40-year
old Jones signed a statement in
which he said the man fell on a
knife and killed himself during a
fight. Mr. Faulkner quoted Jones
as saying he put the body in the
swamp.
- Under subsequent questioning
while under the influence of a
truth serum, Jones said that Eas
terwood knew the man’s name.
Jones is being held under a mur
der charge in connection with
the unidentified "John Doe.”
Levin Named to Post
In Public Health Bureau
Gilbert V. Levin, of Baltimore,
has been appointed stream pol
lution engineer in the Bureau of
Public Health Engineering, Dr.
Arthur E.jCliff, acting director of
public health, announced today.
Mr. Levin was graduated from
Johns Hopkins University with a
master of science degree in sani
tary engineering in 1948 and has
been employed in the Maryland
State Department of Health and
the California State Department
of Public Health.
He is a member of several en
gineering societies and lives at
4845 Kansas avenue N.W.
Baronet's Marriage
To Tantalizing V/ih
Annulled by Court
Sy th« Associotad Prats
LONDON. July 31.—A British
baronet whose lovely bride posed
for nude honeymoon snapshot?
but shied away from the nuptia:
bed is entitled to his freedom, the
Court of Appeal held yesterday.
The court granted Sir Franci?
Beaumont, 27, a decree of nullity
of his marriage to blond Barbara
Singleton Beaumont, 23-year-old
actress. The ground was her “will
ful refusal” to consummate the
marriage.
A lower court had tossed out
Sir Francis’ suit March 1, along
with Lady Beaumont’s cross-peti
tion for divorce on cruelty
grounds. Sir Francis appealed.
The young baronet testified the
nude snapshot sequence and its
aftermath occurred during their
honeymdon on the Isle of Capri
in June, 1949.
He said Barbara stripped and
posed for him on the balcony of
their hotel, but rebuffed his hus
bandly advances.
One thing led to another, Sir 1
Francis related, and eight days1
later they parted. _
Sylvan Theater to Show
Film on Mauna Loa
The mighty Mauna Loa volcano
will erupt Thursday night—on
film.
The fire-and-lava display, in
color, will highlight a free-admis
sion National Park Service pro
gram, “A Visit to Hawaii National
Park,” which starts at 8:15 p.m.
at the Sylvan Theater on the
Washington Monument Grounds.
In case of rain the program will
be housed in the Commerce De
partment Auditorium, Fourteenth
street between Constitution ave
nue and E street N.W.
Gregory Peck in Hospital
LA JOLLA, Calif., July 31 (A*).—
Gregory Peck has entered Scripps
Memorial Hospital here, for a rest.
He has been playing in summer
theater here. Mr. Peck, 35, was
ordered yesterday to undergo a
thorough checkup. His August
tour through the East and Mid
west was canceled.
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* —AP Photo.
ANTHONY D’ANNA.
Made money, but did he earn it?
—AP Photo.
HARRY BENNETT.
Didn’t want head blown off.
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