Dutch Schultz


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Local officials had thrown up plenty of roadblocks during his investigation of Waxey Gordon. Still, there was one gangster who saw the special prosecutor as a threat. Despite his tough words about this Dewey fellow, Dutch Schultz was showing signs of cracking. Arthur Flegenheimer was the son of a Bronx saloonkeeper who deserted the family when the boy was As his mother toiled at a series of dismal jobs to make ends meet, Arthur set off on a different course.

He logged his first arrest, for burglary, at the age of Once out of jail, Arthur, now calling himself Dutch Schultz after an earlier New York gangster, began moving up in the world of crime. Policy, better known as the numbers racket, was an illegal but popular gambling game. Nevertheless, controlling the numbers racket, even with a profit margin of up to 60 percent, was not enough for Schultz. With the invaluable help of a mathematical genius named Otto Abbadabba Berman, Schultz manipulated the winning digits so that less frequently played numbers won.

On the legal front, Schultz received advice from Dixie Davis, who had no problem with dallying on the wrong side of the law. In that same magazine series, Davis recalled his first meeting with the Dutchman. His murderous reputation had led me to expect a ruffian, but he was not at all that way. He was a small but well-set man, with good features. The girls used to say he looked like Bing Crosby with his nose bashed in. Davis soon learned that the former Arthur Flegenheimer had big plans.

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Dutch Schultz was a man of vision, the lawyer wrote. I remember a time when he was reading about the Russian revolution and his eyes glistened as he told me how the Bolsheviks had taken over the gold from a government bank. Schultz loved power, but he loved money even more. Hitman Bo Weinberg was one man who learned the hard way. Weinberg had been a loyal killer for Schultz. He had even served time for contempt of court after he refused to testify when the Dutchman was first indicted for tax evasion.

Yet when Schultz heard that Weinberg had tried to horn in on his territory, he had no qualms about eliminating Bo — doing the job himself, according to some accounts. Dewey was behind the tax indictment, so Dutch decided to lay low until the aggressive young prosecutor returned to private life. Once Dewey was out of the picture, Schultz managed to beat the rap. His first trial, held in Syracuse during the spring of , ended in a hung jury.

For the second trial, which Davis helped get moved to the small northern town of Malone, New York, the gangster embarked on a public relations blitz. It will be apparent to all who have followed the evidence in this case that you have reached a verdict based not on the evidence but on some other reason, sputtered the judge, accurately enough; but Dutch Schultz was a free man again. Schultz left the courtroom in Malone that summer to find that his criminal empire was crumbling. He had never been popular among the mob leaders of New York — they found him too cold, too violent, and too unpredictable — and his fellow gangsters had moved in to divide his territory among them.

Policy was the only major line of business that remained truly his. Schultz smarted, but he knew he was not powerful enough to take back what he had lost.

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The Search for the Lost Treasure of Dutch Schultz

Instead, he set out to try to rebuild his empire, using the numbers as a cornerstone. Then Schulz learned that Dewey had set his sights on the numbers racket, a shift in strategy that Schultz perceived as a direct threat to him.


  • Thomas E. Dewey Defeats Dutch Schultz.
  • Dutch Schultz Treasure | Unsolved Mysteries Wiki | FANDOM powered by Wikia!
  • Thomas E. Dewey Defeats Dutch Schultz.

Schultz also suspected that Dewey had it in for him personally. He was right. As Dewey wrote in his autobiography, I regarded it as a matter of primary importance to get Dutch Schultz. Schultz worried about Dewey for several days. Finally his paranoia and ruthlessness drove him to a deadly resolution.

Dutch Schultz Treasure

He would have Dewey killed. Members were divided over the plan. Mobsters often killed each other, but going after Dewey would be an act of unprecedented audacity that would bring the wrath of the authorities down on the mobs. In the end, the group delayed the decision, but began to lay the groundwork by appointing Albert Anastasia to outline a scheme for a potential execution.

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Anyway, they ironed all that out.


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  4. He got so familiar with Cory, the madam, he wanted to take charge, you know. And Lucky, it was his mistress, too. That was a dangerous proposition because Luciano would likely kill them if he found out, and apparently he did. One night in the mids, while Grauso and Dietz drove to a brothel in Troy, New York, a couple of cars followed them and blocked the driveway. A fight ensued but Grauso realized he forgot his gun and Dietz was killed.

    Dutch Schultz Meets Mob Godfathers (Hoodlum, 1997)

    Grauso ended up working the numbers, or lotteries, for Schultz. He received a crippling stab wound to his leg. He asked Schultz for a few months off and returned to Connecticut. Grauso said Schultz had mentioned wanting to get rid of Dewey because the prosecutor was making a case against him. Grauso was warned not to return to New York. I knew they were after everybody.

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