Moses L Annenberg
Moses L Annenberg (1878–1942): Gambling information czar
Probably no fortune in America was built on a sturdier foundation of cooperation with organized crime and the Mafia than that of Moses Annenberg. A newspaper circulation man by trade and a gambler to boot, Moe Annenberg rose from poverty in the slums of South Side Chicago to accumulate the largest estimated individual income of any person in the nation—thanks to mob money.
Considered a "circulation genius" by William Randolph Hearst, Moe started out in the circulation department of the Chicago Tribune. Later, he was hired away by Hearst's new sheets in town, the American and the Examiner, serving from 1904 to 1906 as circulation manager. He became a grand operative during the early Chicago newspaper circulation wars, selling newspapers with an army of sluggers, overturning the competition's delivery trucks, burning their papers and roughing up newspaper vendors.
Moe's "genius," in fact, was muscle. His roster of sluggers reads less like a publishing staff than a muster of public enemies. A typical Annenberg employee was Frank McErlane. Former Chicago journalist George Murray later described the Annenberg-McErlane relationship: "McErlane went on to become the most vicious killer of his time. Moe Annenberg went on to become father of the ambassador to the Court of St. James."
Under Hearst, Annenberg was one of the highestpaid circulation men in the nation. Hearst so valued him that he tolerated Moe's myriad private business dealings. More than Hearst himself, Annenberg realized the money to be made in the racing information field, both legally and illegally. In 1922 he bought the Daily Racing Form and by 1926 his various private businesses became so big he quit Hearst. In a few years Moe took over the New York Morning Telegraph, Radio Guide, Screen Guide and, most important, formed the Nation-Wide News Service in association
with the East Coast's biggest gambler, Frank Erickson, a close associate of Lucky Luciano, Meyer Lansky and Frank Costello.
In 1929, Al Capone brought Annenberg into the underworld's famous Atlantic City Conference, the gathering at which the groundwork was laid for the national crime syndicate. Capone and Annenberg ironed out the details of a syndicated racing wire in discussions on the boardwalk.
Nation-Wide brought in a flood of money. The service received its information from telegraph and telephone wires hooked into 29 race tracks and from those tracks into 223 cities in 30 states, where thousands of poolrooms and bookie joints operated in violation of local laws. Annenberg thus became the fifth largest customer of American Telephone and Telegraph, making transmissions only slightly behind RCA and the three press associations of the day. It was with Annenberg's cooperation that Lansky sewed up for himself his preeminent gambling position in Miami and Florida's lush East Coast.
In the 1930s Annenberg also took over the century-old Philadelphia Inquirer and through it became a power in Republican Party politics—a "respectable" citizen. But Moe was to end up like Al Capone—hauled up for income tax evasion. In 1939, both he and his only son, Walter, were indicted. For the year 1932 the government found Annenberg owed $313,000 and paid only a paltry $308. For 1936 alone Annenberg owed an estimated $1,692,000 and paid $470,000, still not the epitome of civic-mindedness. All told, along with interest and penalties, Moe's unpaid taxes came to $9.5 million.
Annenberg claimed that, because much of his activities came during a period of national Democratic dominance, his legal troubles were politically inspired. More accurate was the evaluation of the New York Times, reporting that the money gush became so large "it apparently did not seem worth while to give the government its share."
Walter pleaded not guilty and finally Moe, in what some observers to the conversation regarded as the epitome of paternal devotion, declared: "It's the best gamble. I'll take the rap." Moe was in his 60s and his lawyers advised that a guilty plea by him could well lead to the dropping of charges against his son. The gamble paid off. Moe got a three-year prison term and handed the government $9.5 million in settlement.
Nation-Wide News folded and Moe was succeeded as the country's racing information czar by James M. Ragen, who set up Continental Press Service. Walter Annenberg remained an important publishing king and society figure and under President Richard Nixon went on to become ambassador to England. Moe wasn't around anymore but he would have been proud. "Only in America," he might well have said. And it would have been true. Organized crime and the great fortunes derived from it never flourished as in America.
Probably no fortune in America was built on a sturdier foundation of cooperation with organized crime and the Mafia than that of Moses Annenberg. A newspaper circulation man by trade and a gambler to boot, Moe Annenberg rose from poverty in the slums of South Side Chicago to accumulate the largest estimated individual income of any person in the nation—thanks to mob money.
Considered a "circulation genius" by William Randolph Hearst, Moe started out in the circulation department of the Chicago Tribune. Later, he was hired away by Hearst's new sheets in town, the American and the Examiner, serving from 1904 to 1906 as circulation manager. He became a grand operative during the early Chicago newspaper circulation wars, selling newspapers with an army of sluggers, overturning the competition's delivery trucks, burning their papers and roughing up newspaper vendors.
Moe's "genius," in fact, was muscle. His roster of sluggers reads less like a publishing staff than a muster of public enemies. A typical Annenberg employee was Frank McErlane. Former Chicago journalist George Murray later described the Annenberg-McErlane relationship: "McErlane went on to become the most vicious killer of his time. Moe Annenberg went on to become father of the ambassador to the Court of St. James."
Under Hearst, Annenberg was one of the highestpaid circulation men in the nation. Hearst so valued him that he tolerated Moe's myriad private business dealings. More than Hearst himself, Annenberg realized the money to be made in the racing information field, both legally and illegally. In 1922 he bought the Daily Racing Form and by 1926 his various private businesses became so big he quit Hearst. In a few years Moe took over the New York Morning Telegraph, Radio Guide, Screen Guide and, most important, formed the Nation-Wide News Service in association
with the East Coast's biggest gambler, Frank Erickson, a close associate of Lucky Luciano, Meyer Lansky and Frank Costello.
In 1929, Al Capone brought Annenberg into the underworld's famous Atlantic City Conference, the gathering at which the groundwork was laid for the national crime syndicate. Capone and Annenberg ironed out the details of a syndicated racing wire in discussions on the boardwalk.
Nation-Wide brought in a flood of money. The service received its information from telegraph and telephone wires hooked into 29 race tracks and from those tracks into 223 cities in 30 states, where thousands of poolrooms and bookie joints operated in violation of local laws. Annenberg thus became the fifth largest customer of American Telephone and Telegraph, making transmissions only slightly behind RCA and the three press associations of the day. It was with Annenberg's cooperation that Lansky sewed up for himself his preeminent gambling position in Miami and Florida's lush East Coast.
In the 1930s Annenberg also took over the century-old Philadelphia Inquirer and through it became a power in Republican Party politics—a "respectable" citizen. But Moe was to end up like Al Capone—hauled up for income tax evasion. In 1939, both he and his only son, Walter, were indicted. For the year 1932 the government found Annenberg owed $313,000 and paid only a paltry $308. For 1936 alone Annenberg owed an estimated $1,692,000 and paid $470,000, still not the epitome of civic-mindedness. All told, along with interest and penalties, Moe's unpaid taxes came to $9.5 million.
Annenberg claimed that, because much of his activities came during a period of national Democratic dominance, his legal troubles were politically inspired. More accurate was the evaluation of the New York Times, reporting that the money gush became so large "it apparently did not seem worth while to give the government its share."
Walter pleaded not guilty and finally Moe, in what some observers to the conversation regarded as the epitome of paternal devotion, declared: "It's the best gamble. I'll take the rap." Moe was in his 60s and his lawyers advised that a guilty plea by him could well lead to the dropping of charges against his son. The gamble paid off. Moe got a three-year prison term and handed the government $9.5 million in settlement.
Nation-Wide News folded and Moe was succeeded as the country's racing information czar by James M. Ragen, who set up Continental Press Service. Walter Annenberg remained an important publishing king and society figure and under President Richard Nixon went on to become ambassador to England. Moe wasn't around anymore but he would have been proud. "Only in America," he might well have said. And it would have been true. Organized crime and the great fortunes derived from it never flourished as in America.
posted by Mak | 4:37 AM
2 Comments:
Thanks for your research on Moe and Walter Annenberg. I knew Walter when he was U.S.Ambassador in London and I was a the Student Affairs Officer in the Cultural Affairs section.He hated giving Ambassadorial speeches (a main job there) as he stuttered. His wife wanted to be invited to upper class dinners but Moe's jail time precluded that. Walter gave a big check to Nixon and became Ambassador. His wife knew the royal family had to meet with the U.S. Ambassador, ditto other upper crust Britons. Walter spent hugely on grand parties and paid to renovate beautifully the Ambassadorial residence. He also gave lots to British charities, with the stipulation his gift must be treated as anonymous (though of course he signed the gift covering letter so every recipient knew who gave the money). Gradually he and his wife overcame the hostile reception which greeted them in London.When AP carried a photo of Prince Charles teeing off on Annenberg's Rancho Mirage private golf course, the invitations to society parties began to come in. The message was, if you want to meet the Royal family at my place, invite me to yours. The Ambassador's confidant over lunch on a tray was Ted. He was a Cockney who managed the Embassy bar and restaurant in the basement. I asked Ted what they had to say to each other. Ted said business. I asked Ted how he managed to drive a silver Rolls Royce on his salary. Ted explained it was standard practice for managers to get 20% from their suppliers.A funny, bright talker, Ted was a Cockney soul brother with the Ambassador. The Annerberg foundations do a lot of good though the basis of the fortune was partly criminal.
Yes, this was a very informative article. Doing some research on the Annenberg's historical ties to then and now and this helped past some of the other books out there mostly focusing on his publishing career and leaving out his discrepancies which really did define him over anything else.
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