The mobs moved in on Hollywood moviemakers during the reign of Al Capone, when the industry was still silent. Movie executives tended to be silent, too, when faced with Capone threats.
The Capones made their first move through George Browne and his associate Willie Bioff, a longtime pimp. Together, they ran Local 2 of the International Alliance of Theatrical and Stage Employees (IATSE).
To show what fine fellows they were, Browne and Bioff had the union ladle out free soup for unemployed actors. And the two proceeded to ladle more than soup. That same year they pressured a large financially pressed Chicago movie chain to cancel 20 percent paycuts on its employees. As an alternative, Bioff said they would take $20,000 under the table.
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By the time Capone went to prison for income tax evasion, his titular successor, Frank Nitti, had decided to move heavily into movie extortion. He slated Browne to run for the IATSE presidency in the 1934 election. Browne predictably had the Chicago votes sewn up; Lucky Luciano and Louis Lepke saw that he got support in New York; and Al Polizzi took care of the campaign in Cleveland. Browne won in a walk. And Willie Bioff went along to watch over Browne.
For delivering unto Browne the union presidency the Chicago Outfit took 50 percent of all illegal money that was taken in. Later, the fee was raised to 75 percent. This did not represent a squeeze on Browne and Bioff. There was so much money coming in they had no complaint.
The fee for avoiding a strike by projectionists in New York was set at $150,000 (a fabulous sum for Depression days), in Chicago $100,000. Refusal resulted in stink-bombings of the theaters. In 1936 Bioff told the head of Loew’s, Inc.: “Now your industry is a prosperous industry and I must get two million dollars out of it.”
Bioff and Browne then worked out a settlement that called for the four big distributors—MGM, Loew’s, Paramount and Twentieth Century-Fox—to cough up $50,000 a year each, and a smaller company to pay $25,000. In addition, the two leaders got a number of concessions that pleased the union membership, and they were hailed at the 1938 convention.
Browne and Bioff then turned around and levied a 2 percent tax on all their members’ earnings, which brought in $60,000 a month. This did not please the membership; it led to a revolt. That, combined with exposures by columnist Westbrook Pegler, led finally to the duo’s conviction on racketeering charges in 1941.
Facing long prison terms, Bioff and Browne started talking. As a result of their testimony most of the Chicago Outfit’s leadership were convicted— Nitti, Phil D’Andrea, Paul Ricca, Charlie Gioe, Lou Kaufman and Johnny Roselli—and given 10-year prison terms.
They served the minimum sentence and were paroled in a little over three years, a development that provoked a national political scandal. When they got out, the mob influence in Hollywood had hardly deteriorated. Roselli continued to be a power in the movie capital and even turned movie producer himself, turning out a number of law-triumphs-overcrime epics such as He Walked by Night.
Roselli had no trouble getting to make these projects. He made the movie moguls an offer they couldn’t refuse. And when the mob wanted to promote the career of some worthy or unworthy actor or actress it had little trouble getting the proper results.
Since the movie shakedown convictions of Browne and Bioff, the mob has become much more sophisticated in its operations. A union threatens a strike and a lawyer-labor relations expert arbitrates it. He draws a colossal fee for his services on which, minus expenses, he pays the taxes. The balance is then cut up with Chicago.
