Showing posts with label Treasury Department. Show all posts
Showing posts with label Treasury Department. Show all posts

26 July 2017

Embryo of the FBI

On this date in 1908: Former U.S. Secret Service operatives were assigned to serve under Chief Examiner Stanley Wellington Finch of the Justice Department. The following year, the DOJ's new investigative arm was given the name, "Bureau of Investigation." In 1935, it was rechristened, "Federal Bureau of Investigation."

Stanley W. Finch
Aside from a staff of accountants used to monitor financial dealings of the U.S. court system, the DOJ had no investigative staff before July 26, 1908. When it needed to engage in an investigation of a federal crime, it hired private detectives or "rented" operatives from the U.S. Secret Service.

The practice had a number of flaws. It was costly and inefficient. The quality and technique of a private investigator could not be controlled. Secret Service agents were primarily loyal to their full-time bosses in the U.S. Treasury Department. The inter-department renting of operatives also could be cut off at any moment through Congressional budgeting measures.

Finch reportedly argued for some time for the creation of an investigative unit within the DOJ. U.S. Attorney General Charles Bonaparte of the Theodore Roosevelt Administration was convinced to give the idea a try. He hired a group of former Secret Service men in the summer of 1908. On July 26, Bonaparte placed the group under the command of Finch.

Finch remained at the helm until 1912, when he was appointed special commissioner for the suppression of white slave traffic. His successor at the Bureau of Investigation was Alexander Bruce Bielaski, who continued as chief through the Great War and into the early stages of America's first "Red Scare."

14 November 2016


Syracuse Herald-Journal, Nov. 15, 1957
On this date in 1957, the American Mafia's convention at Apalachin, New York, was revealed by New York State Police. 

As officers, assisted by agents of the federal Treasury Department, set up a roadblock and began taking a close look at the luxury automobiles parked at the secluded Joseph Barbara estate in Apalachin, dozens of Mafiosi darted out of the Barbara home and attempted to drive or run away from the scene. That suspicious activity permitted police to gather up the fleeing gangsters and take them in for questioning. Leading underworld figures from around the country were identified. It has been speculated that a number of other Mafia conventioneers escaped the notice of authorities merely by remaining within the house until police had departed.

The incident became a media sensation and prompted state and federal investigations. It ultimately compelled federal authorities - including FBI Director J. Edgar Hoover, who long resisted the idea of an vast criminal conspiracy - to recognize the existence of a nationwide Mafia network.

See DiCarlo: Buffalo's First Family of Crime, Volume II, for a detailed discussion of the Apalachin convention and its aftermath.