This Podcast offers a comprehensive overview of Murder Inc., an infamous organized crime enforcement group active in New York from the late 1920s to the early 1940s. They detail its origins as an alliance of Jewish and Italian-American mobsters, like Louis “Lepke” Buchalter and Albert “Mad Hatter” Anastasia, who led the group’s “murder-for-hire” operations for the National Crime Syndicate. The Podcast explains how this syndicate of shadows, formed by figures such as Lucky Luciano and Meyer Lansky, used Murder Inc. to eliminate rivals and enforce discipline, frequently recruiting local gangsters from impoverished neighborhoods.
Key events, such as the murder of Dutch Schultz and the pivotal role of informant Abe “Kid Twist” Reles, are highlighted, ultimately leading to major arrests and trials in the 1940s that severely weakened organized crime and reshaped its future operations. The texts also touch upon the Havana Conference, which solidified power-sharing and strategic alliances among crime families, showing the lasting impact of these historical criminal organizations.
Study Notes: Introduction to Murder Inc.
Murder Inc. was a highly efficient, shadowy killing machine a Syndicate of Shadows. It operated for years, responsible for hundreds, possibly thousands, of murders across America.
It functioned as the brutal enforcement arm for the National Crime Syndicate, also known as “the muscle” of this notorious Syndicate of Shadows.
This organization operated with corporate precision, turning death into a business.
The study will examine how this deadly syndicate emerged, the ruthless figures behind it, their methods, and its eventual downfall.
This deep dive offers a critical look at how organized crime transformed, innovated its structure, adapted, and faced its own weaknesses, providing unique insights into the mob’s evolution from disorganized street fighters to a sophisticated, business-like entity.
The Impact of Prohibition
The Prohibition era, starting in 1920 with the 18th Amendment and the Volstead Act, banned alcohol nationwide, creating a massive economic vacuum.
This created a lucrative opportunity for this Syndicate of Shadows in organized crime, leading to staggering profits from illegal alcohol.
Prohibition forced historically rival ethnic gangs, including Jewish and Italian groups, to set aside their differences and cooperate for survival and profit, serving as a major catalyst for the formation of a unified national syndicate.
The Castellammarese War and the Rise of Luciano
The late 1920s saw the Castellammarese War in New York, a bloody power struggle between “Old World” bosses Joe “The Boss” Masseria and Salvatore Maranzano for control of the city’s crime families.
This conflict, which lasted for two years, was public and violent, making the streets of New York a battleground.
For younger, more pragmatic figures like Lucky Luciano, this constant bloodshed disrupted their money-making operations and was bad for business.
Luciano, a visionary in his own right, saw that these old-world feuds generated too much police attention and destroyed potential profits.
He meticulously planned to end the cycle by assassinating both Masseria and Maranzano.
Luciano’s Consolidation of Power
On April 15, 1931, Lucky Luciano orchestrated the killing of Joe Masseria at a Coney Island restaurant; Luciano excused himself to the restroom, signaling hitmen (reportedly including Albert Anastasia) to gun down Masseria.
A few months later, in September 1931, Maranzano was killed in his Manhattan office by Jewish hitmen led by Red Levine.
With the old guard eliminated, Luciano paved the way for a revolutionary idea: a national board of directors for the Mafia, known as “The Commission.”
Formed in 1931, The Commission was a total game-changer, shifting power from autocratic bosses to a more structured, almost democratic board.
The Commission’s goals were to prevent future wars, streamline business, divide territories, and settle disputes through a vote, uniting top figures from both Italian and Jewish outfits.
The Formation of Murder Inc. (The Combination)
To enforce the Commission’s rules without direct involvement from the bosses and avoid attracting police attention, a new kind of enforcement arm was needed. The Syndicate of Shadows operated with plausible deniability.
This led to the formation of “Murder Inc.,” also known in the underworld as “The Combination,” emerging in the early 1930s.
Murder Inc. was an exclusive, multi-ethnic hit squad serving both the Italian and Jewish mobs.
Their job was clear: carry out the Commission’s orders with precision and leave no trail back to the top leaders.
Key Figures of Murder Inc.
Two key figures ran Murder Inc., both deadly but with very different styles.
Louis “Lepke” Buchalter, often called the mastermind or architect, built vast labor racketeering empires. He controlled unions and businesses through muscle and extortion, operating with cold, quiet efficiency in industries like garment, trucking, and bakeries.
Albert Anastasia, nicknamed “The Mad Hatter” and later “The Lord High Executioner,” rose to power through ruthless control of the Brooklyn waterfront and dockworker unions. He gained power through sheer terror and explosive violence, with his first known murder in 1920 by knife, showing his cold and emotionless nature early on.
The Front Operation and Recruitment
The front for Murder Inc.’s deadly operations was surprisingly ordinary: the Midnight Roses Candy Store in Brownsville, Brooklyn, run by Rosie Gold.
This seemingly innocent 24/7 candy store served as a hub where hitmen would gather, play cards, and wait for their next contract.
The killers themselves were mostly recruited from tough, working-class neighborhoods in Brooklyn, including Jewish and Italian individuals from areas like Brownsville and Ocean Hill.
These “Brownsville Boys” and their Italian counterparts were young street thugs shaped and trained into efficient, cold-blooded killers.
Notable members included Abe “Kid Twist” Reles, known for being small, psychopathic, favoring an ice pick, and sometimes called “crazy as a bedbug.” Another was Martin “Bugsy” Goldstein.
Their reputation for macabre methods instilled pervasive fear, making their threat absolute.
Business Model of Murder Inc.
Murder Inc. turned murder into a business model, operating systematically.
Killers received a regular salary (a retainer), plus extra fees for each hit, ranging from $1,000 to $5,000.
In a chilling parallel to legitimate businesses, families of killers even received benefits if the killer was jailed or killed on the job, fostering fierce loyalty.
The organization also enforced a strict code of silence, “Omertà,” which was paramount and made them incredibly difficult to penetrate.
This structure mirrored legitimate business practices but in a dark, criminal context.
Brutality and Intimidation
The early brutality of Murder Inc. is exemplified by Abe “Kid Twist” Reles’s early days. He had a feud with the Shapiro Brothers and allegedly beat William Shapiro, then buried him alive in a sandpit in Canarsie in 1934.
This visceral act was a terrifying message designed to instill absolute fear, demonstrating that they meant business.
Harry “Pittsburgh Phil” Strauss, the “Phantom Killer,” reportedly committed between 30 and 500 murders. He never carried his own weapon, picking one up at the scene, and notoriously tied victims to slot machines before dumping them in the East River to prevent bodies from floating up.
These gruesome details were not just about brutality; they built the “Murder Inc. brand” and instilled pervasive fear, ensuring that if you crossed the Syndicate, you were marked, and the end would not be pretty.
The Downfall: The Dutch Schultz Hit and Luciano’s Conviction
The undoing of Murder Inc. began ironically with the breaking of Omertà and the unintended consequences of their actions.
In 1935, Dutch Schultz, under pressure from prosecutor Thomas Dewey, sought permission from The Commission to kill Dewey, who he considered his nemesis.
Albert Anastasia was tasked with scouting Dewey’s location, even disguising himself as a doting mother pushing a baby carriage with a child on a tricycle as cover, staking out Dewey’s apartment on Fifth Avenue.
The Commission, including Luciano, Lansky, Lepke, and Costello, flatly refused, believing that killing a prosecutor like Dewey would bring too much unwanted police attention and was bad for business.
However, Schultz disobeyed the Commission and intended to kill Dewey anyway.
Seeing Schultz as a loose cannon and a threat to their stability, the Commission ordered his assassination.
On October 1935, Schultz and his crew were gunned down at the Palace Chop House in Newark, New Jersey, by Mendy Weiss and Charles “The Bug” Workman, assigned by Lepke.
The unintended consequence: prosecutor Dewey, rather than backing off, redirected his focus straight onto Lucky Luciano.
This directly led to Luciano’s conviction on forced prostitution charges in 1936, ironically making the hit meant to protect the syndicate responsible for the downfall of its main architect.
The Demise of Murder Inc.
Abe “Kid Twist” Reles, facing the electric chair in 1940 for the 1936 murder of candy store owner Joseph Rosen (who knew too much about Lepke’s rackets), decided to save himself.
Reles turned informant, becoming the “canary who could sing but couldn’t fly,” exposing the inner workings of Murder Inc., naming names, and providing details on countless unsolved murders, including his own.
Reles’s testimony unleashed a legal storm of trials, convictions, and executions, bringing down many core figures, including Harry “Happy” Maione, Frank “The Dasher” Abbandando, Pittsburgh Phil Strauss, Bugsy Goldstein, and Mendy Weiss. All were convicted and sent to the electric chair.
Louis “Lepke” Buchalter, after going into hiding and even turning himself into the FBI, was extradited back to New York, convicted for the Rosen murder based on Reles’s testimony, and executed in March 1944. He remains the only major mob boss ever executed in the U.S.
Reles’s betrayal truly dismantled the heart of the Murder Inc. machine.
The Mysterious Death of Abe Reles
The fate of Abe Reles, the star witness, is crucial and mysterious.
On November 12, 1941, Reles was under 24/7 police protection at the Half Moon Hotel in Coney Island, supposedly secure.
He “fell” from his sixth-floor window and died.
The official story was a suicide attempt, with sheets tied together found in his room, but almost no one believed it.
There was a $100,000 bounty on his head, and all five police guards assigned to him claimed to have fallen asleep simultaneously, raising extreme suspicion.
Murder seemed far more likely, and his death was incredibly convenient for Albert Anastasia.
Anastasia’s Continued Rise and Fall
With Reles dead, the key witness against Albert Anastasia in the murder of union activist Pete Panto was gone, and the case against Anastasia collapsed.
Anastasia walked free, and even served a short stint in the army from 1942-1944, gaining naturalization.
He continued his ascent, maneuvering to become the boss of the Mangano Crime Family, orchestrating the disappearance of Vincent Mangano and conveniently “finding” Philip Mangano’s body floating in a swamp in 1951, using his same ruthless tactics.
However, by 1957, Anastasia faced tax evasion charges and became isolated, challenged by ambitious rivals like Vito Genovese and Carlo Gambino.
His end was classic mob style: on October 1957, while relaxing in a barber chair at the Park Sheraton Hotel in Manhattan, masked gunmen rushed in and killed him, marking the brutal end of “The Lord High Executioner.”
The Lasting Impact of Murder Inc.’s Fall
The fall of Murder Inc. changed the game for organized crime, forcing a major shift away from a centralized, multi-ethnic hit squad operating in the open, which proved too risky due to exposure, informants, and executions.
Mob families had to become smarter, keep a lower profile, and handle hits more privately, often within their own family structures.
Organized crime learned a hard lesson from Murder Inc.’s downfall, making it less about “corporate killing” and more about internal affairs.
The business of murder continued, but methods adapted to become less visible.
The story of Murder Inc.’s rise and spectacular fall highlights the constant tension between centralizing power and decentralizing risk, and the vulnerability that comes with huge profits built on violence and fear.
It demonstrates that even the most powerful structures built on such foundations are ultimately fragile, and that even in society’s darkest corners, things evolve, power shifts, and accountability, though sometimes delayed, can eventually catch up.
The sophisticated, almost corporate approach to murder, complete with retainers and family benefits, ultimately imploded due to internal betrayal and public scrutiny, raising questions about the true cost of such power and how effectively operations built on darkness can ever truly remain hidden in the long run.