Monday, April 16, 2012

Bootlegging During The Prohibition Era


The Prohibition era which started on 17 January 1919, when the Eighteenth Amendment to the U.S Constitution was ratified and ended in 1933 when the amendment was repealed, provided an extra source of income for criminals. The Amendment prohibited the manufacture, sale and transportation of alcoholic beverages, but as there was still demand for alcoholic beverages so bootleggers fulfilled this demand. Around this time Luciano, worked for Arnold Rothstein.

Luciano wanted to collaborate with other gangsters to cut down the cost of political protection and reducing the likelihood of hijacked shipments, thus increasing his profits and territory. However Giuseppe “Joe The Boss” Masseria prevented Luciano from taking the path.

In 1921 Luciano began a bootlegging operation with Vito Genovese and Frank Costello, his longtime friend, business partner and eventually Underboss. He first met with them and many other mafia leaders through his involvement in the Five Points Gang.

Luciano and his partners ran the largest bootlegging operation in New York, one that also extended into Philadelphia. He imported scotch directly from Scotland, rum from the Caribbean, and whiskey from Canada. Luciano was also involved in gambling. By 1925 Lucky Luciano was grossing over $12 million a year; however he was netting much less due to the high costs of political protection.

Arnold Rothstein