Free Five Families: The Rise, Decline, and Resurgence of America's Most Powerful Mafia Empires by Selwyn Raab Page A

“rackets,” the gang members demanded or extorted contributions from merchants and individuals whose property and lives would otherwise be endangered.
    “Racketeer” is a totally American invention, probably coined by a newspaper reporter to describe the innovative 1930s breed of mobsters.
    One shake-down the post-Prohibition mafiosi borrowed from the defunctBlack Hand was setting up phony “security” companies to protect businesses from arsonists and vandals who might damage their properties. Merchants and restaurateurs who declined to sign up with these spurious watchguard services often found their windows smashed or their premises ravaged by suspicious fires.
    Jewish gangsters in New York had invented the art of industrial racketeering in the Garment Center, which had a large percentage of Jewish workers and sweatshop proprietors. The Jewish thugs had been invited into the industry by both sides during fierce strikes in the 1920s. They worked as strikebreakers for manufacturers and were employed by some unions as gorillas to intimidate factory owners and scabs during organizational drives. When the confrontations ended, the gangsters who had worked illegally for both sides stayed on, gaining influence in the unions and in management associations. Their alliances with union leaders gave the Jewish racketeers the power to extract payoffs from owners by threatening work stoppages and unionization drives. Alternately, the unions paid them off by allowing Mob-owned companies to operate nonunion shops. Some mobsters muscled into companies as secret partners, getting payoffs from the principal owners in exchange for allowing them to operate nonunion shops or for guaranteeing sweetheart labor contracts if they were unionized.
    Lucky Luciano, the only godfather with close ties to top Jewish gangsters during Prohibition, had little difficulty in absorbing Jewish Garment Center rackets into his own dominion. Jewish hoods became junior partners and vassals of Luciano in one of the city’s largest and most profitable industries. According to Joe Bonanno, who shunned mergers and deals with the Jewish underworld, Luciano in the mid-1950s was the dominant Mob figure in the garment industry. “Luciano had extensive interests in the clothing industry, especially in the Amalgamated Clothing Workers Union,” Bonanno wrote later. Charlie Lucky offered to place Bonanno’s men in important positions in the Amalgamated, which was the principal union involved in manufacturing men’s and boys’ clothing. Once empowered in the union, Bonanno, like Luciano, could control vital jobs, set union contractual terms, and share in kickbacks from the manufacturers.
    Luciano’s offer was politely turned down because Bonanno did not want to be obligated to another family. The independent-minded Bonanno had another good reason to go it alone: he had his own connections to the other vital clothing industry union, the International Ladies Garment Workers Union.
    Like the other New York bosses, Bonanno had numerous traditional criminal activities and new “front” enterprises to keep him busy and affluent. He had taken over a variety of legitimate businesses: three coat manufacturing companies, a trucking company, laundries, and cheese suppliers. There was also a Joe Bonanno funeral parlor in Brooklyn that was suspected of being used to secretly dispose of victims murdered by the family. The ingenious Bonanno was said to have used specially built two-tiered or double-decker coffins with a secret compartment under the recorded corpse that allowed two bodies to be buried simultaneously. Income from these fronts was a handy means for warding off tax audits and justifying his above-average lifestyle.
    Bonanno’s underlying capitalist philosophy rested on a basic theory that guided him and other bosses: eliminate all competition. “One must remember that in the economic sphere one of the objectives of a Family was to set up monopolies as far as it