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03 - The Commission.  

Mar 28, 2026 · 9m 42s
03 - The Commission.  
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The Commission.   As an alternative to the previous despotic Mafia practice of naming a single Mafia boss as capo di tutti capi, or "boss of all bosses", Luciano created The...

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The Commission.  
As an alternative to the previous despotic Mafia practice of naming a single Mafia boss as capo di tutti capi, or "boss of all bosses", Luciano created The Commission in 1931, where the bosses of the most powerful families would have equal say and vote on important matters and solve disputes between families. This group ruled over the National Crime Syndicate and brought in an era of peace and prosperity for the American Mafia. By mid-century, there were 26 official Commission-sanctioned Mafia crime families, each based in a different city (except for the Five Families which were all based in New York). Each family operated independently from the others and generally had exclusive territory it controlled. As opposed to the older generation of "Mustache Petes" such as Maranzano and Masseria, who usually worked only with fellow Italians, the "Young Turks" led by Luciano were more open to working with other groups, most notably the Jewish-American criminal syndicates to achieve greater profits. The Mafia thrived by following a strict set of rules that originated in Sicily that called for an organized hierarchical structure and a code of silence that forbade its members from cooperating with the police (Omertà). Failure to follow any of these rules was punishable by death.  
The rise of power that the Mafia acquired during prohibition would continue long after alcohol was made legal again. Criminal empires which had expanded on bootleg money would find other avenues to continue making large sums of money. When alcohol ceased to be prohibited in 1933, the Mafia diversified its money-making criminal activities to include (both old and new): illegal gambling operations, loansharking, extortion, protection rackets, drug trafficking, fencing, and labor racketeering through control of labor unions. In the mid-20th century, the Mafia was reputed to have infiltrated many labor unions in the United States, most notably the Teamsters and International Longshoremen's Association. This allowed crime families to make inroads into very profitable legitimate businesses such as construction, demolition, waste management, trucking, and in the waterfront and garment industry. In addition they could raid the unions' health and pension funds, extort businesses with threats of a workers' strike and participate in bid rigging. In New York City, most construction projects could not be performed without the Five Families' approval. In the port and loading dock industries, the Mafia bribed union members to tip them off to valuable items being brought in. Mobsters would then steal these products and fence the stolen merchandise.  
Meyer Lansky made inroads into the casino industry in Cuba during the 1930s while the Mafia was already involved in exporting Cuban sugar and rum. When his friend Fulgencio Batista became president of Cuba in 1952, several Mafia bosses were able to make legitimate investments in legalized casinos. One estimate of the number of casinos mobsters owned was no less than 19. However, when Batista was overthrown following the Cuban Revolution, his successor Fidel Castro banned U.S. investment in the country, putting an end to the Mafia's presence in Cuba.  
Las Vegas was seen as an "open city" where any family can work. Once Nevada legalized gambling, mobsters were quick to take advantage and the casino industry became very popular in Las Vegas. Since the 1940s, Mafia families from New York, Cleveland, Kansas City, Milwaukee and Chicago had interests in Las Vegas casinos. They got loans from the Teamsters' pension fund, a union they effectively controlled, and used legitimate front men to build casinos. When money came into the counting room, hired men skimmed cash before it was recorded, then delivered it to their respective bosses. This money went unrecorded, but the amount is estimated to be in the hundreds of millions of dollars.  
Operating in the shadows, the Mafia faced little opposition from law enforcement. Local law enforcement agencies did not have the resources or knowledge to effectively combat organized crime committed by a secret society they were unaware existed. Many people within police forces and courts were simply bribed, while witness intimidation was also common. In 1951, a U.S. Senate committee called the Kefauver Hearings determined that a "sinister criminal organization" known as the Mafia operated in the nation. Many suspected mobsters were subpoenaed for questioning, but few testified and none gave any meaningful information. In 1957, New York State Police uncovered a meeting and arrested major figures from around the country in Apalachin, New York. The event (dubbed the "Apalachin Meeting") forced the FBI to recognize organized crime as a serious problem in the United States and changed the way law enforcement investigated it. In 1963, Joe Valachi became the first Mafia member to turn state's evidence and provided detailed information of its inner workings and secrets. More importantly, he revealed the Mafia's existence to the law, which enabled the Federal Bureau of Investigation to begin an aggressive assault on the Mafia's National Crime Syndicate. Following Valachi's testimony, the Mafia could no longer operate completely in the shadows. The FBI put a lot more effort and resources into organized crime activities nationwide and created the Organized Crime Strike Force in various cities. While all this created more pressure on the Mafia, it did little, however, to curb its criminal activities. Progress was made by the beginning of the 1980s, when the FBI was able to rid Las Vegas casinos of Mafia control and made a determined effort to loosen the Mafia's stranglehold on labor unions.  

The Mafia's involvement in the US economy.  
By the late 1970s, the Mafia were involved in many industries, including betting on college sports. Several Mafia members associated with the Lucchese crime family participated in a point-shaving scandal involving the Boston College basketball team. Rick Kuhn, Henry Hill, and others associated with the Lucchese crime family, manipulated the results of the games during the 1978–1979 basketball season. Through bribing and intimidating several members of the team, they ensured their bets on the point spread of each game would go in their favor.  
One of the most lucrative gains for the Mafia was through gas tax fraud. They created schemes to keep the money that they owed in taxes after the sale of millions of dollars' worth of wholesale petroleum. This allowed them to sell more gasoline at even lower prices. Michael Franzese, also known as the Yuppie Don, ran and organized a gas scandal and stole over $290 million in gasoline taxes by evading the Internal Revenue Service (IRS) and shutting down the gas station before government officials could make him pay what he owed. Franzese was caught in 1985.  
Labor racketeering helped the Mafia control many industries from a macroeconomic scale. This tactic helped them grow in power and influence in many cities with big labor unions such as New York, Philadelphia, Chicago, Detroit and many others. Many members of the Mafia were enlisted in unions and even became union executives. The Mafia has controlled unions all over the U.S. to extort money and resources out of big business, with recent indictments of corruption involving the New Jersey Waterfront Union, the Concrete Workers Union, and the Teamsters Union.  
Restaurants were yet another powerful means by which the Mafia could gain economic power. A large concentration of Mafia-owned restaurants was in New York City. Not only were they the setting of many killings and important meetings, but they were also an effective means of smuggling drugs and other illegal goods. From 1985 to 1987, Sicilian Mafiosi in the U.S. imported an estimated $1.65 billion worth of heroin through pizzerias, hiding the cargo in various food products.  
Another one of the areas of the economy that the Mafia was most influential was Las Vegas, Nevada, beginning just after World War II with the opening of the first gambling resort, The Flamingo. Many credit the Mafia with being a big part of the city's development in the mid-20th century, as millions of dollars in capital flowing into new casino resorts laid the foundation for further economic growth. This capital did not come from one Mafia family alone, but many throughout the country seeking to gain even more power and wealth. Large profits from casinos, run as legitimate businesses, would help to finance many of the illegal activities of the Mafia from the 1950s into the 1980s. In the 1950s more Mafia-financed casinos were constructed, such as the Stardust, Sahara, Tropicana, Desert Inn, and Riviera. Tourism in the city greatly increased through the 1960s and strengthened the local economy.  
The 1960s were also when the Mafia's influence in the Las Vegas economy began to dwindle, however. The Nevada State government and Federal government had been working to weaken Mafia activity on the Strip. In 1969, the Nevada State Legislature passed a law that made it easier for corporations to own casinos. This brought new investors to the local economy to buy casinos from the Mafia. The U.S. Congress passed the RICO Act a year later. This law gave more authority to law enforcement to pursue the Mafia for its illegal activities. There was a sharp decline in mob involvement in Las Vegas in the 1980s. Through the RICO law, many in the Mafia were convicted and imprisoned. 


Wikipedia: Creative Commons Attribution-ShareAlike 4.0 License.

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Author Popular Culture and Religion.
Organization Popular Culture and Religion.
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