2. The Business of Al Capone
• “Al Capone was to crime what J.P. Morgan was to
Wall Street: the first man to exert national influence
over his trade.” (Pasley, 4)
• He used many of the same tactics as businessmen
used,
Established an oligopoly in Chicago, which
expanded to all of Illinois.
Later, started a national convention of crime gangs
in Atlantic City (in 1929).
At the convention, he divided up the U.S. into
territories for each gang, making a national
oligopoly.
3. Capone’s Innovations
Capone made use of trucks,
telephones and tommy guns to
eliminate competition.
His organized lines of succession
allowed his “crime outfit” to flourish
without him.
He improved efficiency of bootlegging
(on-time deliveries and quality control).
4. Innovations Continued…
Always paid his debts, paid bookies
fairly; this led to a good “credit rating”
with other gangsters and customers.
Showed foresight: he created “front
businesses” right away.
First front business: an antiques shop.
Used bribery on police and government
officials.
5. “Caponeville”
Businesses try to establish a secure
base of operations.
Al Capone did this in Cicero (a Chicago
suburb).
He bribed all politicians and police in
Cicero, and was untouchable while
there (basically owned Cicero).
6. “The Legend of Scarface”
The public had mixed emotions.
Capone was liked for distributing
alcohol, but feared for being a
notorious gangster and murderer
(Public Enemy No. 1).
For decades, Chicagoans were torn
between pride and embarrassment.
Capone indirectly helped to end
prohibition.
7. Works Cited
Theodore J. Karamanski. “The Legend of Scarface.” Chicago
History Spring 2006: 4-19. SIRS Researcher. Web. 22
September, 2009.
Pasley, Fred D. Al Capone The Biography of a Self-Made Man
(Kessinger Publishing’s Rare Reprints). Grand Rapids:
Kessinger, LLc, 2004. Print.
Iorizzo, Luciano. Al Capone A Biography (Greenwood
Biographies). New York: Greenwood, 2003. Print.
Unknown. “The FBI and the American Gangster, 1924-1938.”
THE FBI: A Centennial History, 1908-2008 2008: 16-32. SIRS
Government Reporter. Web. 22 September, 2009.
