11. An Early Mafia Beachhead in Labor Racketeering
Paul Kelly’s ability to swing elections helped him greatly. It earned him political favors that kept him out of legal trouble, or made it go away and helped lessen its impact when it did arrive. When a rivalry with another street gang led by a Monk Eastman spilled into street violence, Tammany Hall ordered Kelly and Eastman to settle their differences in a boxing ring. The match ended in a draw, however, and when the street fighting resumed, Eastman was arrested for robbery. Tammany Hall withdrew its protection from Eastman, who was convicted and sent away for ten years in Sing Sing.
That left Kelly as NYC’s uncontested top gang boss. After he survived a messy assassination attempt in 1905 that entailed a bloody public shootout, Kelly was arrested but soon released because of his connections. Tammany Hall ordered him to tone it down, however, and Kelly reduced his direct street gang involvement. He moved into labor racketeering, and got himself appointed vice president of the longshoremen’s union – an early beachhead for the mafia in labor unions. From that position, Kelly provided muscle in labor disputes, until he passed from natural causes in 1936.
