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JOHN EDGAR HOOVER
nmzcron REC£;y£O
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�L 7 3,� 5-.5:-""October 16, 10 ,%E�._,:;,
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DuTIHS301m
L 11.41
Vn the afternoon of the 15th instant, a
telegram was received by the writer from Special Ll�
Assistant to the Attorney Gmeral Oeeaa at Chicago,
requesting that contact be made with the Offim of
Ur. Teague,member of the Farm Board for the purpose
of ascertaining the correct name and address of one
Mr. Taggart, mentioned in a letter addreaeed Mr.
Teague by Mr. Eustace, which letter had been for-
warded to the Bureau eons daye ego by Mr. Teague.
I communicated with Hr. &#39;I&#39;eague&#39;e offim
and ascertained that he was out of town mt learned
through his Secretary that he probably had no personal
knowledge of the address of Mr. Teggart. Hie Secre-
tary, however, agreed to telegraph Hr. Eustace in
Calif.and to advise this office promptly upon receipt
of a reply. In the meantime, a telegram was forwarded
to the Chicago office, advising that Taggert&#39;e initials
were V. C. and that efforts were being mde to learn
hie address.
This morning Mr. Teegue &#39;e office called by
telephone ani stated that a reply had been received
from Lir. Eustace, listing that 111�. &#39;I�aggart&#39;e correct
name was V. C.¥agg&I&#39;t and that he was employed by
the Fry Broker ge Company on Racine Avenue, 14th Place,
Chicago in the eouth water market neighborhood. This
infornnti on wm promptly telegraphed to the Chicago
office.
Respectfully,
Q/2,/1 /1
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JOHN EDGAR HOOVER
DIIICTUI
October 20, moo.
I-.H.fOI-<ANDliI92! FOIL �I&#39;EE&#39; IIIHECIUR
The attached letter from the Chicago office in the
matter of LLANNY SCh�R.AIHEHG, TONY RONANO, JUICE GRAPE III�TE&#39;I�IGA-
&#39;I&#39;lcl�&, describes the plan of investigation tentatively adopted
at the time Llr. Oeees wee at Chicago. This morning Agent Fey
called me by long distance and advised that Agents Little and
Lliller had conferred with Charles Irrgang and perfected arrange-
ments whereby a carload of grapes would be "knocked doth" to
Agent Eilillo under an assumed name. This trans action would re-
quire no tram fer of money. However, Irrgang would fur: ish a
cashier&#39;s check for $600 to be used by DiLillo to pay the freight
on the car amounting to 530 odd dollars and to defray the ex-
pected rechat charge of $50.00. The returns of sales will be
placed in the bank by Arrent Fay and later surrendered to Llr. Irr-
5&1?-
I
Upon receipt of information from Agent Fey, I advised
L2". Qseee, who in turn later saw fir. O&#39;Brien and has now requested
t�n"t we proceed with the investigation as planned. Consequently,
I have prepared the attached wire authorizing the Chicago office
to proceed.
Fey has been advised that the Bureau is desirous
of having Agerrt D1Lillo return to his headquarters at the very
earliest practicable 118138. _
Agent
&#39; Beeps ctfully,
V. &#39;5. Hughes. �
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pd�??? B�-1-1&#39;4-I53-:15
REOORDED &#39;
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C� ° �92 ,wr5"
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- - , £111-zmx of T "92_-.7, -he/�;;__ggu_?-f"£&#39;;§_.K. P. 0. Bo: No. 1405, "~ &#39;.i,,;&#39;-{__:1 VJ c.11cnG0. ILL. I 2� Aniavh t -
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. F I!�:-, �#11-Ocwbe
UCTZD !830&.1
Director, as: mm rsmc;&#39;ro1~rY amuse;Qeen °
Bureau of Investigation, .Tuxcx°on.iPs nmsrroiriozr;
Department of Justice, §§Tl3IBQ§T MATTER _p__4"Washington, D. C. 7777477 A 47
Dear Sir:-
Pursuant to telephonic instructions received from
Mr. Vincent Hughes on October 15th and 14th, l950, Agents Albert
Miller, E. T. Little and D. DiL11lo conferred Iith Special Assis-
tant to the Attorney General, Er. I. B. Oseas, who arrived at the
Chicago Bureau Office on the morning of October l5, 1930 at 9 A. M.
The investigation conducted by Kr. Oseas and the above named Agents
will he covered in the font of a report which will be submitted shortly.
During Mr. Oeess� visit he informed the writer that he
desired Agents Little and Miller to interview approximately twenty
persons, all located in the city of Chicago, and engaged in various
phases of the juice grape business, and such other persons having
useful information, which interviews with the foregoing may disclose.
It was hr. Oaeas� idea to obtain, if possible, signed statements fro
all persons interviewed, and he was informed that the Chicago Bureau
Office would sake every effort to comply with this request.
As a result of the conference had by Mr. Oeeas with
Mr. Charles Irrgang, Er. Oseas decided that Agent Dilillo could be
used to advantage in conducting an under-cover investigation. The
present plan is to have Agent DiLillo purchase a carload of grapes
becomes engaged in the above business he will be approached and &#39;
either requested to discontinue or contribute a certain amount of A
and sell than at the Juice grape tenminal of the Chicago & NorthWestern hailway. It is expected that shortly after Agent DiLillo "929292
9292
money for the privilege of conducting his Juice grape business at
the North western Railway terminal. Mr. Oseas suggested that prior
to the entrance of Agent DiLillo into this business that he [DiLillo!
visit the various tenninals where juice grapes are being sold and
also the Auction for the purpose or becoming acquainted Iit*.the.i_-.n. _;»
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manner in which the Juice grape business is conducted. Hr. Oseas
also requested that Kr. DiLillo should not becoze engaged in the Juice
grape business until October 20, 1930, at the earliest, as he Oneal!
wanted to talk this matter over with the officials of this Bureau.
Hr. Oseas had no definite suggestion as to the manner
in which Agent DiLillo�s business would be financed. However, he
stated in substance that Kr. Irrgang would finance this proposition,
bt had no inroznmtion as to the details concerning same. Hr. Oseas
was also undecided as to whether it sOUld be best to have Agent
DiLil1o deal directly with.Er. Irrgang, or through an intermediary.
On the afternoon er October 17, 1930, the writer had
a telephonic conversation with Mr. Charles Irrgang, at which time the
latter informed the writer that he had knowledge that Agent Dilillo
was the man who would be used under cover in this investigation. This
would seen to indicate that since the writer�: conversation with Hr.
Oseas, the letter has informed Mr. Irrgeng as to the identity of the
man to be assigned under cover. While talking to Kr. Irrgang definite
information was obtained concerning the manner in which Agent DiLi1lo
would operate. Er. Irrgang suggested that Agent Dilillo should �get
next to one of the boys buying grapes st the Auction and request him
to purchase a csrload for him� DiLillo!. Mr. Irrgang stated that
possibly it would be necessary to pay e sall fee for this service,-
probably fifteen to twenty-five dollars. He informed the writer
that carloads of juice grapes were selling for approximately $1,000.
He stated that he was ready and willing to furnish the necessary finan-
cial backing for Agent DiLillo&#39;s business venture, and related that
the money obtained by Agent DiLillo, as a result of his selling a
carlosd of grapes, could be delivered to an agent of this office, and
in turn given to Er. Irrgeng. Mr. Irrgang stated that he was not
interested as to whether or not the juice grapes could be sold at
a profit by Agent DiLillo.
At the time the writer conferred with Mr. Oseas, prior to
his departure from Chicago, Illinois, he stated he expected to return
to Chicago about November 5th or 6th, 1930. He requested that he
be immediately notified when Agent Dildllo enters the juice grape
business, and further, that he be kept advised as to any unusual events
which may arise therefrom. The writer advised Mr. Oseee thatthe Bureau
would be promptly advised should any unusual develoPmBnt5 °°°�T in
this connection. &#39;
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Mr. Oseas also
pay tribute on two or three
corroboration, if possible,
DiLillo is approached by any person or
occasions,
suggested that, if possible, Agent DiLillo
as demanded, and suggested that
be obtained in all instances shere Agent
persons engaged in interfering
with the sale of juice grapes at the North Isstern terminal. At this
time it is the intention of the sriter
Palmera the latter, it being advised,
for assignment on October 18, 1930! go
nn I, &#39;I&#39;92QW�&#39;I&#39;IQT�"�Y92 9292c.l�|: �T! .1�! Q"f9292&#39;92+ ff;VJ-J E-92 kb�v-kUl.lU.l.D1l¢L�-I U5-3§B Ll-L III-ll UbbWl I UV
by Mr. Oseas.
to have Agents DiLil1o and
sill report to this office
into the juice grape business
obtain the corroboration desired
The substance of the foregoing infornmtion was related
to Hr. Vincent Hughes by long distance telephone on the afternoon
of October 1?, 1930, and as per instructions received at that time,
i this office sill suggested that Fr. Irrgang dras a check in the amount
necessary for the purchase of a earload of juice grapes, which till
in turn be converted by this office into a cashier&#39;s check and used
at the time the carload of juice grapes is purchased. Mr. Irrgang&#39;s
check will be drawn in a sufficiently large amount to include the fee
which may be charged by the person purchasing the Juice grapes for �
Lgent DiLillo, and
may be requested.
have to be paid in cash, and this cash
also to cover the $50 tribute, which it is thought
Both of the latter transactions, of course, will
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the time the cashier&#39;s check above mentioned is tendered in payment
for the carload of juice grapes. Inasmuch as Mr. Osess desires that
Agent DiLillo pay tribute, if possible, on two or three occasions,
the foregoing procedure will be repeated as often as is necessary.
It is also Hr. Oseas&#39; idea to pass marked money at the time the last
tribute is exacted and hnnediately thereafter have the person or
persons exacting such tribute taken into custody. Nothing definite,
of course, can be decided upon this phase of the case at the present
time an713015" .._ it is not knosn shat circumstances sill arise in the course
of the investigation. However, you may rest assured that the Bureau
will in no nay be embarrassed by the action taken by the Agents assigned
to this matter.
--- - ne|_ .s________;__;.a92lAgents DiLil1o and ralmera sill oe only impressed with
the fact that they are to do nothing which may form the basis for
a defense of entrapment at a subsequent date.
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The writer has endeavored to lay before you the present
etatue of the foregoing investigation end if anything in the etoree
mentibned plan of procedure doee not meet with the approval of the
Bureau, or it the Bureau desires to iseue further instructions with
respect to the conduct of this investigation, same will be greatly
appreciated by this office. This office will endeavor to keep the
Bureau constantly informed as to further developments,ee they arise,
in this investiget ion-
Yery truly veere-I I
5-><~ $31". X. FAY,
FXF-Ink Acting, Special Agent in Charge.
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CHICAGO, ILLINOIS � "-3"
Po O0 BC:
m.s.r 11, 1930 5, 1
Bureau of Invest igation,
Depertmant of Justice,
Washing-tcn, D. C.
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Dear Sir . Manny Schrsiberg; Tony Romano, Juice
Grape Inveatigat ion- Anti Trust
photostetie copiee oi� editorial page oi� the itic
Rural Press, Sen Francisco, California, date October
11, 1950.
the editorial
There are trenanitted hererit: tIo
Attention is respectfully invited to
appearing under the caption "g}1cago
Recketeering and California" end to the eta eunents
therein eonta ine� in ich relate to the intestigation
nos in progress in this office in connection Iith the
above entitled matter. The enclosures are submitted
for the attention oi� the Department.
Very truly yours,
1&#39;. I. FAY, £11111-3
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October 14, 1930. -- % �st; -
4 92&#39;,-I �I
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92___.
EEIORANDUM I03 THE DIRECTOR UCTI5lE30&:
with further reference to the requst of Er. O&#39;Brien
made to the writer on the 13th instant to have Special Agents
assigned to cover the Northwestern Railroad Yards at Chicago
unier cover for the purpose of observing th activities or the
gangsters there in collecting tribute from purchasers of grapes,
I desire to advise that arrangements have been made to have
Sp6CiE1 Agent D. DiLillo of the Pittsburgh office at Chicago on
the morning of the 15th instant to meet Mr. Oseas of Kr. O&#39;Brian&#39;e
division who is leaving this afternoon for Chicago. The Chicago
office has been advised to have present tomorrow morning Special
Agents Little and Scanlon as well as Agent Albert Miller. Er.
Oseas desires to obtain certain additional inronmation from Agent
Kifler who has previously investigated the case and he may probably
use either agent Scanlon or Agent Little with Agent DiLil1o in the
Northwestern Railroad Yards.
Hr. Oseas plans to have the work in the railroad yards
continued for only severd.days because it is believed that by that
time he will be able to ascertain just what is going on at the yards.
However, in all probability, he will Iant the Agents to assist him
in making some additional interviews and Agent Albert Miller no doubt
will be used for that purpose ____irm. On-.&#39; Respectfully:
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"Tth further reference to the TUIUE�CR,£�..
at Chicogo, I desire to advise that this morning I had a confdfenzpe
with Llr. Oseas who left Chic-ago yesterday. Li". Oseas stated there
is no doubt whatever that there is a racket in the juice grape in-
dustry at Chicago, that it is controlled absolutely by certain gang-
sters, that the greater part oi� the shipment of grapes from the
�fest Coast is routed to the tracks of the Northwestern Railroad,
where the disposition of the grapes is entirely under the dominion
oi� Italians. Lir. C-seas stated that he personally visited these
tracks on Thursday oi� lest week when there were 160 odd carloads of
grapes bei my sold, that among the many hundreds of peogk, both
sellers and purchasers, he did not see a half dozen persons of
other than Italian oriri n, and had, therefore, concluded that it
would be utterly impracticable for anyone other than an Italian
to attemnt to learn what was going on.
He stated fbrther that he had conferred several times and
at length with CP.aBI..E:s Ii~�d<.G.;-1-�G who made the origdnal complaint to
the ;Jeper1rr.ent, and had discussed ways and mans of ascertaining
the facts in an effort to ialie some action. Ergang advised that it
would be utterly impossible to expe ct any persons engaged in the
racket to talk; that several weeks ago a raid had been made by the
State&#39;s Attorney&#39;s office on the Northwestern Railroad tracks and
a considerable number of the vendors of grates had been arrested
and interropated but nothing was learned from any or them. They do
not reinse to talk but_they know nothing concerning a racket when
they are interrogated.
Ilr. Oseas stated that Irrgang volunteered to furnish the
funds for an Agent oi� this Bureau to alter into the grave business;
that is, to actually purchase a carload oi� grapes through his Irr-
gang&#39;s] auction, then to move that car to the Northwestern Railroad
trac}-as for sale by retail by our Agent. Mr. Oseas stated that after
discussing the matter with Irrgang and with the Agents at the Chicago
office, he had concluded this was the only means oi� obtaining any
information oi� valueand tentative plans had been made along these
lines.
Mr. Oseas stated further that he had interviewed the Presi-
dent oi� the Lorthwestern sailroad who lent a very sympathetic ear to
the complaint and sta&#39;ed that it had been on his suggestion that the
raid was made by the State&#39;s Attorney&#39;s office several weeks before I
but the t the raid had been absolutely �it ile B92.- far as results were
concerned. The President of the Railroad arranged that lir. Oseas
I
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would have a conference with the Railroad official in charge of the
unloading of the tracks where the grapes are wold. This official
talked freely apparently to LL:-. Oseas and stated that he kmw that
the business was absolutely under the dominion of the racketeere
hat could offer no evidence w support that state.-ant, ct-ha than
circumstances at the tracks. Mr. Oseae stated that in wiew of the
absolute daninion exercised by the racketeere, it could lnrdly be
expected that anyone would voluntarily testify against them. It
had been our impression that the raclceteers had con�ned their ac-
tivities!-to 2&#39; tracks of the Northwestern Railroad and while ih.
Qseas at impression, it was found that the reason for
this was that no one would buy frcm the other tracks so apparently
the racketeers lave brou Edit about a condition which permits of the
purchase of grapes only at the Northwestern tracks where thqr do
have absolute sway.
I inquired of 1.11". Oseas what the plans were with regard
to the handling of the money which might be furnislnd for Agent Di
Lille to rake the purchase of grapes and ecccnmt for the ret11_&#39;r&#39;n of
sales. He stated that that had not been definitely decided upon
and requested no to notify the Chicago office to have th Agent see
Irrgang again on I-�onday and perfect these plans. He stated that ar-
rangements had been made to have a further conference with Irrgang
after agent DiLillo had learned ecmething about the grape business
at Chicago; that DiLillo has now had Thursdw, Friday and Saturday
and will have tomorrow, Sunday, one of the biggest days in the 1.-rage
business at Chicago, to have observed generally how the hisiness was
conducted and consequently it would be in order to again eee Irrgang
and complete their plans. However, DiLillo has not seen Irrgang to
date and I.Ir. Oseaa stated that the Agents at Chicago, Agent Fay parti
oularly, had felt tint it would be wise not to have Irrgang meet
DiLillo or to know DiLillo in any way. I concurred in this view be-
cause I believe it would be better for all parties concerned for
DiLillo not to deal directly with Irrgaxg.
Mr. Oseas is to see Mr. O&#39;Brien on Monday morning Mr.
O&#39;Brien is not at the Department today! and will acquaint him with
the plans. In the meantins, I have celled Age-m Fay at the Chisa@
office, suggesting that Agents Miller and Little see Irrgsng on Mon-
day morning and perfect the plans previouly discussed but that they
should take no act n til they had called this office by telephone
and had received to act. It is cmtenplated that as
soon as they call this office on Monday, Mr. O&#39;Brien will be fully
informed and can then state whether he desires to have the plans
proceed.
Respectfully,
4 �L A
V. We Hu¬.heI I
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ll:-. Hughes.
Ir. I&#39;ll�.
llr. H&#39;l.1gh68._
llr. leg.
Hr. Bzghel.
COPTFJS DES TR
&#39;1 2C JUL 27
_1�_-�-II-F-PHORE _Q°_1HEF51&#39;1IIQ1[iE&#39;1_&#39;l_IEl§_I 1|ng_;s_mnns&#39;s Ann
�L "R- 3411 l9&#39;1�IJ!Lé°E"&#39;1lem
L, TM ,°.°e&#39;IlQB1&#39;-&#39;_-B _L&#39;h._.!°_§9.&#39;
"In-. Osees and Ir. Irzgsng had quite s eonterenoe
eonoerning the Juice grape ntter. Ir. Ddtillo is
going into the grape business. Be is to bid tor s ser-
losd of grapes end the osrlosd will be knocked don to
him, after iaioh he is to go to the Iortlwestern Terminal
end mdeevor to dispose oi� that on-load oi� grspes. I asked
Ir. Osess how the srrengemeents eould be oerried out to buy
these grapes and he said he Iould teke that up Iith you
tomorros when he gets to Isshington. the osrloed or grapes
�I111 eost $1,000.00. Ir. Osees stated he thought it Ioulll
be better for Agent DiLil1o to nssooiste himself Iith 1 In
in the grape business end request hin to bid tor the esrlosd,
even though it might be neoesssry to pq him I $15.00 our {£5.00
eossnission, etter iiioh D11�.-illo sen go down to the truck himself
end sell the grapes."
"How ere th&#39;e grepes to be purchased?"
"I inegine in oesh."
"I think by cheek would be better.�
"The only thing is, Ir. Bughes, that is In buy through s
second party.�
�Ties I understend the check pmposition. Iell, of course,I
1.1---L -�l-�.-92- ---92.l 92.- §-�|.-- A-.-. &�l-4. L--L -eel --eseilpcu--I Once QIll U U115� Zllln�ll U� U�.-�ll PU U} PI-LIL �llH UAUMUH LU� I
cashier&#39;s check.�
�Ir. Oseas wants Dilillo to do nothing so tar es going into
the ectusl business is oonoerned until Monday. &#39;l&#39;hst I111
giwe you sn opportunity to talk to Osees. I thought Isould
give you this in the lesntins.�
�I em glsd you did.I
"In the meantime DiLillo is going mt end tnmilisrizing
himself Iith the grape business in general, so thst when
he goes into it he will know something shout it."
�I will get in touch with Osess snd will cell you up site:-ward."
OYED
1954 ,7
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night no iir. �ohrniborg, one uf the aliugo� runteu-u, Ir. BOIWO1 _. I
 took an our to u lunch ngon whore Schrniberg In gating. Bouts]. &#39; &#39;j;j}}�;&#39;�£ §&#39;-j stated that Schnibo:-3&#39;: bodyguard In thu-0 at the tin, tut I lid .&#39;
n "tot notice tin. &#39;~_ Then Iur0";ivIt_&#39; IQ _70n_rl_Il-Q1-Qu&#39;9n_ jh-{kg-_nek;
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Jinn the named éfjhl consign�! O1� ,8" 0.3 9?!-¢l8°. Pl "
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e &#39; ; �Iarde, and explained Oh! III the grape! at $116" II-I�1l|.l�;;;;-&#39; &#39;
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..._.k__H late by _I1"1"g_lIbk5,i~�1_I_t--11"_!h.a did 317 _ to all papee et_,e1._i ea Q0
 �!.&#39;."*&#39;==,-*=~."=.~.*�=&#39;*"&#39; ""514 i!£".!:&#39;*-"° *.J%°§;!"&#39; &#39;91" &#39;°"!&#39;.7"U":�?:-¥T?f Tgrepee. Ir. -�faipeoa eeu was that wee new in�: aai
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ire &#39;!I.eeii.&#39;.- -as the eerldritee the beetle-are local." &#39;~"-1"�-;-..&#39;;¢-&#39;
the rain oi� laet light the walk nae very 1:641. Inadiately eljllling
than tradki are the newly built runway: at the Bt. Paul B» I» they
Iere built especially ea Juice grape traakee They are laid out in ».
swam um erg bounnu; min __e1_t_ eleur .4171!» 1!-In ¢¢-!!.11!l?>1-1;�:**ir..;
the hrthseetem ear 1-e-Qeé. e.J.a.-22.1.1 $9 n;e_e!$!&#39;e_ ;#= !!1!=!l__§!%@_ .5*!!�-5-"-�-1&#39;;&#39;."=1_&#39;;�~"-f�i&#39;.?�he 15¢ ;-pea tar ye;-hep: �I: _3�,!h|_ara&#39;_.2l.i&#39; ,e_6tTe_ frgr 3,011" Q Ilflji Pl!-1 921&#39;lCl_le I3&#39;¢_�;BQ_92l|1 =Q&#39;9&#39;l!1$l_i_t;s"a�ll �ii.-,__.,#__:that it required £1-eat lipluaey for _hin �g�. _ . _. - .;§~"&#39;that he eel alreeb been ehet at emu -aw---$,,a�. 1&#39; V =�..;"a�-$.~:,,,,__.,-;;i_.-�;., . ~-
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that brokers en; nu at thug ark.-t_eeIte11ue.�.i;92v. .!=!lI.r9111_�,#,!_3&#39;_@,"�ir-i;_-;-;v.{+iJ_r;;r:.;_have mu ginieitehei to� m ¢1im=;..!.l&#39;treet.Y-,r1! W� F
near the Betta Pb Teri: an! Qboeei a the eeetioe-.11� the luctiea--trait
" " < *1 at Ir. om-* re eatin-. ymlyuw, Irrsus qr 1¤ .1? H
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an to the ietaiie of hie ecnp1eint.- ir. etatei he iii eertiii
that the $50 par ear Iae nun being paid at the cnieeso and North
Iestarn R.ai1Iay&#39;e juice grape track ae tribute, but he could not euhit
the nanae or any of the peddle:-e who have paid euah tribute or who have
been approached for ;a3I92ant oi� �lributee Ir. I1&#39;r8m8 ""91 $11� &#39;51"
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.l,�*-�*�-�W ""&#39;""*oun"&#39;!.i:z1u; no sum �llltllillllj1I�fI!J.UII,"IOIlti1�§1I§"¬BO"��NI!*�""�*""
 or tho praeillol proniling in to touinnla at Chicago with ntonnoo
j&#39;_&#39;-_-"&#39;.o&#39;.@;.1"Z~.&#39;;"-&#39;*&#39; to tho Iolo and mi-toting oi� juice upon: Son:-11 yous no tho
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 =_:;.;-751� .jui::pl1&#39;:poiH:rn tho: :1 oonzorno� Illwll�l: ho%|!§.II&#39;I
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In ono flonoo oi� �tho in-l,_ �lo not�, in �If; 1:-char�: opinion, no o poo 1
thing, tor one oi� tho &#39;3-omit: �ax-out in pg oxolu�o lolopnloni pours �T &#39;
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i-"if ,*=:&#39;$n=:&#39;, hug Ssh:-aiherg, as 2:11 es Fro! Sir; 2.21.! .1Ie.2h_I.2 Bubin, are all
T nomborl of tho Capone gang. Schniborg, Blane and Rubin Q11 hold
&#39; thennoolvoo out to be roprooontotivoo or tho Roi-thorn Fruit and Produce Co.,
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