"RACKETS" 8135 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON COMMERCE UNITED STATES SENATE SEVENTY-THIRD CONGRESS SECOND SESSION PURSUANT TO S.Res. 74 A RESOLUTION AUTHORIZING AN INVESTIGATION WITH A VIEW TO THEIR SUPPRESSION VOLUME I PART 1 NEW YORK CITY AUGUST, 14 to 15, 1933 Printed for the use of the Committee on Commerce UNITED STATES WASHINGTON: 1933 INVESTIGATION OF SO-CALLED "RACKETS" Part I MONDAY, AUGUST 14, 1933 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON COMMERCE, The subcommittee met at 10:30 a.m., at the Bar Association, 42 West Forty-fourth Street, New York City, Senator Royal S. Copeland, chairman, presiding. Present: Senator Copeland, chairman and Col. Franklin S Hutchinson, chief of investigation. (The committee thereupon proceeded to the consideration of Senate Resolution 74, which is as follows:) [Senate Resolution 74, Seventy-third Congress, first session] Whereas there have grown up in this country numbers of so-called "rackets", and newspapers carry numerous accounts of "beer rackets", "poultry rackets" "milk rackets", "food rackets", "laundry rackets", "drug rackets", and other similar schemes for the exploitation, deception, and terrorizing of our citizens; and Whereas the legitimate trade and commerce of the country, as well as the general welfare of our people, demand that the Federal Government take any steps within its power to suppress such practices: Therefore be it Resolved, That the Committee on Commerce, or any duly authorized subcommittee thereof, is authorized and directed to investigate so-called "rackets" and "racketeering" practiced in the United States, and to report to the Senate as soon as practicable the results of its investigations, together with its recommendations, if any, for necessary remedial legislation through the exercise of the postal power, the power over interstate and foreign commerce, or otherwise. For the purposes of this resolution the committee, or any duly authorized subcommittee thereof, is authorized to hold such hearings, to sit and act at such times and places during the sessions and recesses of the Senate in the Seventy-third Congress until the final report is submitted, to employ such clerical and other assistants, to require by subpoena or otherwise the attendance of such witnesses and the production of such books, papers, and documents, to administer such oaths, to take such testimony, and to make such expenditures as it deems advisable. The cost of stenographic services to report such hearings shall not be in excess of 25 cents per hundred words. The expenses of the committee, which shall not exceed $10,000, shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman, or by the chairman of the subcommittee if one shall be appointed. The CHAIRMAN. I will ask the meeting to come to order because it is desired to broadcast the introductory addresses. There is a growing conviction in our country that the administration of justice has fallen down. Our citizens cannot understand why racketeering and kidnaping appear to be on the increase. The cost of crime is steadily advancing. Conservative students of the subject place the levy at varying amounts, even as high as 13 billions of dollars annually. Everything we buy, every purchased |