Dutch Schultz (born Arthur Simon Flegenheimer; August 6, 1901October 24, 1935) was an American mobster based in New York City in the 1920s and 1930s. Schultz made his fortune in organized crime-related activities, including bootlegging and the numbers racket. Schultz's rackets were weakened by two tax evasion trials led by prosecutor Thomas Dewey, and also threatened by fellow mobster Lucky Luciano. Schultz asked the Commission for permission to kill Dewey, in an attempt to avert his conviction, which they refused. When Schultz disobeyed them and made an attempt to kill Dewey, the Commission ordered his murder in 1935. Schultz was shot at a restaurant in Newark and died the next day.
Early life
Arthur Simon Flegenheimer was born on August 6, 1901, to German Jewish immigrants Herman and Emma (Neu) Flegenheimer, who had married in Manhattan on November 10, 1900. He had a younger sister, Helen, born in 1904. Herman Flegenheimer apparently abandoned his family, and Emma is listed as divorced in the 1910 US Census. (In her 1932 petition for U.S. citizenship, however, she wrote that her husband had died in 1910–though it is unclear whether he died before or after the 1910 US Census.) The event traumatized young Flegenheimer, who spent the rest of his life denying that his father had abandoned his family. Flegenheimer dropped out of school in the eighth grade to help support himself and his mother. He worked as a feeder and pressman for the Clark Loose Leaf Company, Caxton Press, American Express, and Schultz Trucking in the Bronx between 1916 and 1919.
Criminal beginnings
When Flegenheimer began working at a neighborhood night club owned by a small-time mobster, he started robbing craps games before turning to burglary. Eventually he was caught breaking into an apartment and sent to the prison on Blackwell's Island (now called Roosevelt Island). Flegenheimer/Schultz's mugshot, aged 18, was published in the 2010 book New York City Gangland. He proved to be such an unmanageable prisoner that he was transferred to a work farm in Westhampton, Long Island. After he was recaptured following an escape, he had an extra two months added to his sentence.
Flegenheimer was released on parole on December 8, 1920, and went back to work at Schultz Trucking. With the enactment of the Volstead Act and the start of Prohibition in the United States, the shipping company began smuggling liquor and beer into New York City from Canada. This led Flegenheimer to start associating with known criminals. It was also during this time that Flegenheimer became better known as "Dutch" Schultz. Following a disagreement, he left Schultz Trucking and went to work for their Italian competitors.
Criminal career
Bootlegger
In the mid-1920s, Schultz had begun work as a bouncer at the Hub Social Club, a small speakeasy in the Bronx owned by a gangster named Joey Noe. Noe was impressed with Schultz's ruthlessness and reputation for brutality when he lost his temper, and he made him a partner. Together they soon opened more illegal drinking joints around the Bronx. Using their own trucks to reduce high delivery costs, they brought in beer made by Frankie Dunn, a brewer in Union City, New Jersey. Schultz often rode shotgun to guard the trucks from hijackers.
Schultz and Noe soon had to deal with the brothers John and Joe Rock, who were already running a bootlegging operation in the Bronx. Initially the brothers refused to buy beer from Noe and Schultz, but eventually John, the elder brother, agreed to cooperate; however, his younger brother Joe refused. One night the Noe-Schultz gang kidnapped Joe, beat him and hung him by his thumbs from a meat hook. They then allegedly wrapped a gauze bandage smeared with discharge from a gonorrhea infection over his eyes. His family reportedly paid $35,000 for his release. Shortly after his return, he went blind. From then on, the Noe-Schultz gang met little opposition as they expanded across the entire Bronx. Bootlegging during Prohibition made Schultz very wealthy.
Gang wars
The Noe-Schultz operation, which had begun to flourish in the Bronx, soon became the only gang able to rival the network of Italian crime syndicates that became the Mafia's Five Families. When the gang expanded from the Bronx over to Manhattan's Upper West Side and the neighborhoods of Washington Heights, Yorkville and Harlem, they moved their headquarters to East 149th Street in The Bronx. However, this brazen move led to a bootleg war with New York's Irish Mob, led by Jack "Legs" Diamond.