Dallas gambling chief ends his own life

On this date in 1932...

Warren Diamond, fifty-five-year-old Prohibition-Era gambling czar of Dallas, Texas, ended his own life at his Highland Park West home on August 10, 1932.

Austin American Statesman

Diamond had been a patient at St. Paul Hospital (formerly St. Paul Sanitarium, located at the western corner of Bryant Street and Hall Street). Early on the morning of Wednesday, August 10, he decided to leave the hospital. He called for a taxi and rode three and a half miles to 4224 Armstrong Parkway, the large home he shared with his wife Nellie. A surprised and uneasy Nellie greeted him at the door. Diamond brushed past her and proceeded to his upstairs bathroom. Knowing that her husband had been despondent over his health issues, Nellie quickly summoned George Foote, Diamond's longtime friend and business associate.

A short time later, a gunshot was heard.

Foote entered the bathroom and found Diamond dead of a bullet wound to the head. An automatic pistol was on the floor a couple of feet from Diamond's body. A coroner's investigation determined that Diamond committed suicide at about 8:45 a.m.

Newspaper reports of his death referred to the gambling racketeer as a "sportsman and philanthropist" and as a former druggist. Later reports revealed that he suffered from an untreatable cancer of the prostate and his deteriorating condition drove him to suicide.

Diamond death certificate

Diamond's funeral was held on the morning of Friday, August 12. The Rev. Louis Harrington, pastor of the Church of the Blessed Sacrament, conducted the services. Diamond was interred in a family mausoleum he earlier constructed at the Grove Hill Cemetery. His pallbearers included two of his known lieutenants, F.L. "Dub" McClanahan and Ben Whitaker.

(Findagrave.com)

Diamond's gambling empire, assembled over decades, was dismantled after his death. George Foote, his top aide, reportedly took over the Dallas-area policy (numbers) rackets. Ben Whitaker, who also dabbled in bootlegging, assumed control over the bookmakers and wire news service. Dub McClanahan took the popular no-limit craps games.

Gambling operations within Diamond's old headquarters at the St. George Hotel, between Main Street and Commerce Street, were taken over by Dallas Mafioso Joseph Civello. Civello's operation, which included craps, bookmaking and a race wire service, was said to be under the protection of the local police department.

Behind the scenes, a former Warren Diamond apprentice was scheming to take control of it all. Benjamin "Benny" Binion reportedly broke away from the Diamond organization in the latter half of the 1920s and established his own organization at Dallas's Southland Hotel. His operation was said to be protected by Galveston-based mob boss Sam Maceo.

St. George Hotel on Main Street (smu.edu)

Just a few years after Diamond's death, Binion was regarded as the top man in Dallas gambling. In 1936, he started to force independent bookmakers to make protection payments to him. Control of policy rackets was nailed down with the fatal shooting of holdout independent operator Ben Frieden in September of that year. The St. George Hotel gaming rooms fell under his control when Joseph Civello was arrested on a federal narcotics charge (local police protection was little help). Years later, Civello was released from prison and pardoned after evidence surfaced that his own attorney and his trial judge conspired to remove him from the Dallas gambling scene through a narcotics frame-up.

Political changes in the late 1940s made Dallas an unfriendly place for Benny Binion. He moved on to become a key figure in the growth of gambling casinos in Las Vegas, Nevada.

Sources:

• Cartwright, Gary, "Benny and the boys," Texas Monthly, October 1991, p. 137.
• Edgerton, Harold J., "Joseph Francis Civello," FBI report, file no. 92-2824-137, NARA no. 124-10290-10440, May 17, 1968, p. 26-29.
• Glass, Mary Ellen, excerpts of interview of Lester Ben "Benny" Binion, "World Series of Poker: A retrospective," University of Nevada, Las Vegas, Center for Gaming Research, May 20, 2009, accessed Aug. 9, 2018. (https://gaming.unlv.edu/WSOP/BennyBinion.html)
• Kuykendall, Leo E., "Lester Benjamin Binion," FBI report, file no. 92-3241-7, NARA no. 124-90088-10054, Feb. 28, 1958, p. 11-12.
• Reid, Ed and Ovid Demaris, The Green Felt Jungle, Cutchogue NY: Buccaneer Books, 1963.
• Death certificate of Warren H. Diamond, Texas State Department of Health, Bureau of Vital Statistics, certificate no. 33744, Aug. 1, 1932.
• John F. Worley Directory Co.'s Dallas City Directory 1925, Dallas: John F. Worley Directory Co., 1925, p. 866.
• Worley's Dallas City Directory 1929 Vol. XLII, Dallas: John F. Worley Directory Co., 1929, p. 361.
• Worley's Dallas City Directory 1932 Vol XLV, Dallas: John F. Worley Directory Co., 1932, p. 615.

• "Warren Diamond ends life after leaving hospital," Dallas Morning News, Aug. 11, 1932, p. 1. Funeral announcement, Dallas Morning News, Aug. 12, 1932.
• "Wealthy sportsman found dead at Dallas," Austin American Statesman, Aug. 10, 1932, p. 1.
• McCormick, Harry, "Crime in Texas III: Benny Binion Dallas' gift to racket ranks," Dallas Morning News, Feb. 13, 1951, p. 1.

Hennessys capture Sicilian brigand in New Orleans

On this date in 1881: Cousins David and Michael Hennessy, members of the New Orleans detective (or "aides") force, capture fugitive Sicilian brigand Giuseppe Esposito near the St. Louis Cathedral in the Crescent City.

Esposito

Esposito, also known as Giuseppe Randazzo and as Vincenzo Rebello, had escaped Italian authorities while headed to trial for homicide and other crimes. In the 1870s, he crossed the Atlantic and settled briefly in New York City before moving on to New Orleans. Police and press believed the Mafia of Palermo assisted in his escape and flight from Sicily. Esposito became the recognized leader of the Sicilian underworld in New Orleans, settled down and started a family.

He was betrayed to Italian authorities by some of his New Orleans associates. A U.S. private detective firm was hired to locate him and bring him to justice. Private detectives of the Mooney and Boland Agency worked through the New Orleans Chief of Aides Thomas Boylan to arrange the capture.

Esposito's arrest was conducted very much like a kidnapping. The Hennessys caught him alone, grabbed him and threw him into a carriage, taking him off to a secret location. He was prevented from seeing any of his New Orleans family or friends. The following day, he was smuggled aboard a steamship that was already under way for New York City.

The circumstances of his arrest and his New York City efforts to avoid extradition to Italy became international news and the subjects of Congressional inquiries.

NY Evening Telegram

In a series of hearings before U.S. Commissioner Osborn in New York, the prisoner contested his identification as the brigand Esposito and claimed to have been a good citizen in New Orleans at the time that Esposito was committing crimes in Sicily. Witnesses - some of whom were later linked with the Mafia - came from New Orleans to support his story. The prisoner had difficulty in explaining his documented use of aliases. His alibi failed when Italy sent police officials to New York to identify the fugitive brigand.

Esposito's return to Italy was handled as suddenly as his arrest. Once the U.S. Commissioner was satisfied of his identity and before any legal appeals could be considered, Esposito was turned over to Italian authorities and placed on a ship for Europe. His wife and child were left behind in the U.S. (Esposito trusted New Orleans allies to care for his family. They failed to do so and took Esposito resources for their own benefit. Esposito later tried without luck to sue them from his Italian prison cell. His wife gave birth to a second child after his deportation. Both children were later placed in New Orleans orphanages.)

In his absence, the Crescent City's Sicilian underworld broke apart into warring factions - the competing Provenzano and Matranga organizations.

The Hennessys became instantly famous following the Esposito arrest (though the local police superintendent accused them of insubordination for acting without his approval). Their fame came at a terrible price. Within ten years of Esposito's capture, both of them were murdered. In each case, the killings remained officially unsolved but were widely believed performed by Sicilian gangsters.

David Hennessy

Mike Hennessy, who relocated to the Houston-Galveston area and started a private detective business there, was shot to death a short distance from his Houston home on Sept. 29, 1886. He was shot repeatedly from behind. One suspect, D.H. Melton, was arrested but later released for lack of evidence.

David Hennessy became police superintendent in New Orleans and actively fought the local Mafia. As he returned home from work on the evening of Oct. 15, 1890, he was attacked by a group of gunmen. He was knocked down from a distance by a shotgun blast of bird shot and then mortally wounded by higher-caliber slugs fired into his body at closer range. He died the next day. The assassination of the police superintendent resulted in the imprisonment of members and associates of the local Matranga Mafia and later to the Crescent City lynchings.

Read more about this subject in:
Deep Water: Joseph P. Macheca and the Birth of the American Mafia
by Thomas Hunt and Martha Macheca Sheldon