Why was illegal gambling allowed to operate openly in Phenix City In the 1930s Phenix City and Russell County were on the verge of bankruptcy. The area had no industrial or business base and revenues were insufficient to meet expenses. Into this void stepped the gambling bosses. In return for the freedom to operate, we will solve your budget problems. You might ask, how could gambling solve the budget problems if gambling was illegal? Here is how. First the gambling bosses agreed to pay fees of $2500 for business licenses (a princely sum in the 40's and 50's). Further local law enforcement would stage periodic raids in which arrests would be made. The arrestees would post high cash bonds and then fail to appear for court. The city/County would then forfeit the bond and the money would go into the public treasury. Of course no one ever tried to pickup the no shows. BTW, the gamblers were innovative and shrewd people. One problem was how to dispose of worn out slot machines and other gambling paraphernalia. The answer, let local Police confiscate it in the raids and then destroy it. It provided for good PR for the cops and got rid of the old machines. Jobs In a city/county where there was no industry, jobs were hard to provide. The gambling houses provided lots of good paying jobs to local citizens. Charity The gamblers knew that until they could seize the government they had to have the forbearance of the citizens. So the first hospital in Phenix City was build largely with money donated by the gambling bosses. In addition they paid off churches mortgages and were generous with the schools and local sports leagues. Takeover Despite making money hand over fist, the gambling bosses were still uneasy. After all, the city/county officials could revoke the unspoken deal and they chafed under some of the restrictions (for example, until his death, the Mayor who made the original deal refused to allow prostitution in the city limits, you had to go out in the county for that). So the bosses began to contribute heavily to the campaign coffers of local and statewide candidates. Eventually they said the hell with that and just began running their own people. They got the law changed so that Russell County became a separate judicial circuit (allowing them to elect the DA and Judges), they elected their own Sheriff and controlled the Police Department through their councilmen. The End A local lawyer named Albert Patterson ran for Attorney General on a pledge to "Clean up Phenix City". To the shock of the bosses and despite their vote buying and election fraud, he won. Before he could take office, he was gunned down in the streets of Phenix City. Indicted for his murder was the Chief Deputy Sheriff of Russell County (convicted), the local District Attorney (acquited) and the Attorney General of Alabama (never tried because he entered a mental institution). Thats the story of Phenix City. Does it have any similiarities to or relevance to today. What say you reader? |