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Purple Gang Aka Sugar House Gang — Part 3
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Detroit File #60-174
Blizaheth, New Jersey, uses the Detroit race track in their operations.
8 advised that.the numbers gang from eround Elizapeth, New
“Jersey, has an agreement with some member of the Detroit race traok
so that odds are switched at the lest minute in order to make the de-
sired numbers in the published daily mutuals come out in order that the
numbers racket, which pays off on the combination of mutuel numbers at
the Detroit race track, will not have the lucky number fall on one where
the purchases are unusually heavy for that particuler days
According | every day while: the Detroit race track ia ‘running
some representa f the mob. in New Jersey will telephone the contact .
at the Detroit raga track and advise what numbers should show in the
published mituals for the day in order to insure that the lucky number
will not be one where the purchases are unusually heavy. Then, accord-
ing to the mituals are shifted a figurea two if necessary in
order to make the desired number appear. He stated he knows this has
been done because in 1938 he procured the cooperation of two detectives
from the Special Investigation Squad of the Detroit Police Department
and shecked on the telephone calla that came in daily from the numbere
mob in New Jersey. He atated his observations indicate this practice
has continued. He advised that he knows nothing concerning the identity -
of the numbers mob in New Jersey and his only information ie that each
day in 1938 at least the telephone calls came from some city close to
Elizabeth, New Jersey, or possibly from Elizabeth, New Jersey, itself.
GANGS IN DETROIT -
At present there are no known gengs or mobs of hoodlums operating as
such in Detroit. Detroit, four or five years ago, was the headquarters
for the notorious Purple Gang that operated for a while and controlled |
@ great number of illicit and gemi-{llicit activities in thia eres.
During its operation the Purple Gang controlled auch thinge as the —
malt industry, liquor labels, breweries, whiskey smuggling, dope, etc.
However, this gang was dissolved through the activities of the Detroit
Police Department and tts remnants, if not in the penitentiary, have
become engaged in auch ectivities as handbooks, big money gambling, the
numbers racket, and like operations,
The original head of the Purple Gang, ABE BERNSTEIN, presently resides
at the Book Cadillac Hotel, Detroit, Michigan, and receives a vary sub-
stantial income from the race track wire service in Detroit. Information
indicates that several years ago, when he had his Purple Gang together,
he muscled in on the wire service as it was conducted then and has ,
maintained his interests sufficiantly to force the ANNENBERG interests
to pay him a rake off. ABE's two brothers, JOE and IZZIE BERNSTEIN,
-L2-
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