University of Rochester Department of Rare Books & Special Collections Thomas E. Dewey Papers , ' ' "" " - !. ,�',".' � , ' ' ". ,, .. , lIl, WILLIAM 8. HERLANDS COMMISSIONER STATE OF" NEW YORK" I ' i, EXECUTIVE DEPARTMENT OF"F'ICE OF' THE 270 BROADWAY , NEW YORK 7, N. Y. COMMISSIONER OF" INVESTIGATION REcTOR 2-"'2151 , M1 4Gar �_ . , 06•• 0 .." " " "�'ii�ttb yo,*i .�� • .$$e�,?Uat1- hM" been'.DI4d.".i,t"Ull· •• ta��.�.�.�4P�it :�,�lathg to th.��011�t ,tlle i�t'e,n��:�I'���;'�m�i and the sr�tiaa ot��l:.·tOJ- ��i.�,,�t:' l1t,. :';depQ�"�n'.. ' ' ', �, ' , ",' � " � , :,> . ',_ i'd ·:,�:i : ::,:i. ' , , . ' ,, ' ," ':- ' �i " /f'. :: ' , " , , I nav. the,l1oDO� �" ·tNa_l�';'�'.tl('the report t.h�.8ti,tg.ti1on. 'of that • University of Rochester Department of Rare Books & Special Collections Thomas E. Dewey Papers (I '. I' • I I" < '�--' .. ,.,' �.<I . " '''� . �: . ' J f •• ).,' CONTENTS LETTj:CR OF TRANS�/rITTAL ••'•• � ••• ••. � •• •• � •• it • ; � • • • • • • •• i .. INTRODUC'I'ION •••••••••••••• • It ••• e· ••• 4. �. � •• � ••• _... 1 Dates of the C onunut n ti on , P arole . • and Deporta tion ••• •• � •••• � ••� ••• � •• ;. ; ••• , • • • 1 The Commutation and the Governor's - Message to the Le g isl ature ' ••• .••• • ••••••'" .. 1 The Prp.ctice of. Gr9.nting Commutation tor the Purpose of Deportation., •• " .. .. it. •. 2 Scope of the Investigation.·.-•••• •• ••••' ... .. ... 2 ••• • • , .... 4. •• ••' •••• '. • •• • • • • • THE QUESTIONS ANSWERED �'.' • 3 I ' SYNOPSIS OF THE EVIDENCE •• � .. ..... � • • ••••• ••• � •• •• • •• 4 OFFICIAL CONFIR�ITATION OF THE WAR-AID PROJECT BY REAR ADMIRAL CARL ESPE, DIRECTOR OF NAV A.L INTELLr<+ENCE •• It ••• ••• • •••• • •••• ••• � • • • • • •• 11 . " . SUMMARY OF FINDINGS OF F.�CT •••••• • ,; . .... ... .. II •• 12 CHAPTER 1 WHY THE NAVA.L I ��TELLIGENCE ,AUTHORITIES ORIGINATED THE USE OF·UNDERWORLD INFORMANTS ••••••••• ,,� .. '. � ••• • •••••••• • , •••• 14 ' The Gr�ve National Emor gency ••••• •••• •• I) 0 14 /. o •••••••• •••• __ !t � •••• •• •• • � _ War Chronol gy . 15 B1cpgraph1oal Notes on the Major Witne sses .... .. .. ... .. � • • •• � •••••••••• r15 The Pert inen t Problems and Working Theories of the District Intelligence Officel Third N�val Distrlot l in 1942 •• 16 tl The Functiops of the B_3rt Section alid (I " • the F Section ••••· •••••••• •• ••••••• �" 20 'r'; Th� Use of Informants with Criminal Records and Underworld Conneo tions in rn. t s •• e • ••• Terms of Intelligence Ope ion . 21 ., \ ' The 'Aoute Needfor' Na,val ' " - • e e :. "•• . ••• •• • •••••' •• _ .• . Inte l��g ng . � 21 � �: . .. : . ,:':�A o e on th �'): Use orCrim�nal " .;\;,�o:;,; N t . ' . ' t • • • • • ••• .;::-:. ';\ . ' : �:- ,��:��� :�:l�ov�.:rl s'�·\.� eo'.:- �. • • , • 21 - . " o' l,:(r,;,'" > .......� . > • . --. �./,, .... ; '. ' � • ', - ' . I " .:''';. , �> · ,.· · .· :�i��Oftio1alIn_st·�uct1ons with Respeot,' . Informants ••• • • •• i ' : ..' '.: < :' \.. ·to' " •••••••• •• � ' ••.• 22 . I'. 22 I .. ' I ' 1.1. ' . " , r o :�; 1#..:::, .: . ... : I��: • University of Rochester Department of Rare Books & Special Collections Thomas E. Dewey Papers "- \_�.) CHAPTER , 2 HOW THE DISTRICT INTELLIGENCE OFFICE, THIRD NAVAL Dr.STRICT, L'\UNCHED mE PLf1N TO USE· UNDERWORLD I't-;rFOR1�ANTS 1 UNDERWORLD' LE�,DERS .I\ND THEIR CONT�CTS. �.. 24 In troduc tion •• •• ••• �.. •• •• •• • • • ••• • • • • •• • 24 The Init i al Conference: Mar ch 7, 1942.. 24 The Second Confer ence : Mnrch 25, 1942 •• 26 " 3, HOW JCE SOCKS" LANZA WA.S BROUGHT INTO · THE WAR-AID PROJECT ,ON M�,RCH 26, 1942 WHAT •••••, •• •••• ••• • !' •• •••, .•••• 29 AND HE DID • Introduction •••• • � •• _ �. Ii. ••••• ••• ••• ••• .• 29 The Moeting of Lanza, L8nza's Attorney and Colonel '1urf'ei n on MI?.rch 26, 1942. 29 '. L The Meoting of' nnza, Lanzr. t s Attorn ey , Colonel Gurfein and Commandor Haffenden About One Woek l\fter March 26, 1942... 32 Subs e cp ent Meet ings Between Lanza and Commander Hatfenden. e •• •••••, • :. • • • .... •• 33 The Work That Lanz a Did for Naval Intelligence Through His Own Contacts . 34 " Activities in Connecti on with • .Fi shing Fleet s •• ,. .• • e!t ••• ••••• � • • 34 Intelligence Activitios on Long . r Is 1 and • • • • � " • • '. • • • • .• • • • .. • • • • • • •• 3 5 Placing Nav�l Intelligence Age nt s . on Boa t s • ' . • • • • .. •.• • • • • • . .. • • • • • • .• • • 35 Obtaining Information .i\bout .the· Waterfront, Possible ' S�bot age , and Loaks Concerning Convoy .Movements '36 4 WHY �·ND HOW LUCI.�NO W".S BROUGHT INTO THE NAV'L INTELLIGENCE, ACTIVITIES.. •.••• ••••• • 38 ."Mr., G�erin'18 Testimony •• •••• �.. •.•.•.• • •.•.•• 38 .. " . IA'·· Lanz'� 's Testimony'� . '•• •• •' � ••� . .. .. e.. • •• . .. 38 -,., .�.,:. 39 : ..... : " 11'1 �'" " ',\ .:.,: . ., .!. .. .. ' .i· . '--' University of Rochester Department of Rare Books & Special Collections Thomas E. Dewey Papers CH� PTER Page Lieutenant Commander Kelly's TGstimony.� 40 Inspector Nugent's Te stimony ••••••• •••• • 41 �olonel Gurfein's Affidavit.� •••• •• •••• • 41 District Attorney Hogan's Af fidavit ••• oe 42 Mr. Polakoff's Testimony o . IJ ••••••• o� •••• 42 Meyer LFl.nsky's Testimony ••••••••• ••o •• •• 45 Commander Haffenden's Kefauver Committee's Te stimony Concerning the Origin of .the ' • • • • • • • • • • • • • oft he Pr 0 j e ct. • • • • • • ., eo.. 47 5 LUCIANO'S TRANSFER ON MAY 12, 1942 FROM CLINTON PRISON TO GREf.T MEADOW PRISO N, IN COMPLIANCE WITH THE l1E0,UEST OF THE DISTRICT INTELLIGENCE; OFFICE, THIRD, NAVAL • • • • • • • • • • • DIS TR I CT. • • • • • • 0 • 0 • • • • • • • • • 0 .'. 49 Introduc t ion and Surrimary•• • 0 •• •• •• _ .' ••• 0 4g Herbert H. Lehman Was the Governor, and His Appointoe, John A. Lyons, WqS the Commiss ion 8 r of Correct ion, in 1942 ••• 49 Great Moadow Prison: a "Ma.ximum l1 Securi ty Pri s on •• ••••• � • * •••••••••••• 50 The N�vy's Written Requost to Cownissioner Lyons to Transfer Luciano • • •••• • •••••• 50 The A ff idr\ vi t of Li"euten9.nt· Commandor Cowe n •••••••• • •••• ••• ••• • ••• •••• •• 50 The Af f id avit of Ensign Lr.mber son ••• 51 The Aff i davit of Harry L. Bone steel . 51 The Affidavi t. of Vernon A • Morhous •• 52 The Affid:�vi t of C.olonel GurfGin it • I)'5 4 The Affidav'it of Dis-tri c·t Attor·ne y . , ••• " •• 0 •••• •••• •• •• • Hog an , � ......... 54 . .' ." .. - The Report of Commiss ione r Mor8. n " 9 1> Q 54 6 HOW LUCll�NO 1\IDED THE NAR EFFORT ••• • � •••• 5e Intr oduc ti on nnq. Summa.:ry .... ......... ... 56 Some of Luciano's Major C ont ac ts •• • •••• ', 57 iv University of Rochester Department of Rare Books & Special Collections Thomas E. Dewey Papers . C �i KPTZR Page The Procedure Followed in Visiting Luciano at J?ris on •• •.••e. e e e • e •• e . ..... ." •••• •.• • e •• 58 00tnG •.• •. , • •• !�ecord Facts of of the \lisits • � ••• • 59 . • . ... •. •• • ••. ftecorded Visits by .(r. �:olakoff . 59 · hecorded Visits by .1eycr Lansky ••. •.••••,. .... 60 R. e cor ded Vis its :;y Joe ".jocksL Lanza �.. ••.• • 60 Other hecorded ..... .... ... .... ..... ... Visits .. � .... .. e. ' 60 t. The First Visit to Luciano: Between May 15 a.nd. June 4, 19 42 by :lr. Polakoff and " 'Toyer Lansky .. ......... ..... .... ...... ... ...... :•• e :.. 61 Details of ��yGr La nsky 's Naval Inte11igenc� i . ... e • , . • • •. • , ;, • J�� c t v i tie s . • • • • • e • • eo·.. .. • • o' •• :... :. 62 Details of Lanza's Naval Intelligence '\ctivities .1ftcr Luci a no .�as Brought .I.)ro c •• ••••••• •••o ' . ... o • .•• •.• ' Into the j c t . .. .•. 68 Wire-Tap Corroboration of the Underworld'S c .... i c • , � . Inte11i{�'€;nc ctiv it s ., .. e eo . e .• ••e •. • • •.•••: 71 November 24 anti 26, 1942 : Lanza, McCabe, Lansky and Commander Haffenden re Jubvcrsives and ' 3ubvGrsivc Literature . " .........0' •• ••• . • • .• • 72 November 25 and December 22, 1942:. Lanza, :-IcCabe [-Ind Commander . Haff enden .!:£ Harry Bri dge s .«•• ••••.•• ••••• - 7 3 November 30, 1942: Lanza, HcCabe, . d A. .;ent Xii and COiUmander Haffenden ••" • . ... 74 November 30, 1942: Lanza and Commander ' Ka it z .. .. .. .. , ............ ', •.••, .. .. .....0 . � ••.. 7·4 December 7, .1942: Lanza, HcCabe and ' Commander Ha f 1 ende n !:.£. i'8p1endid ' \vor k Ii . • • • • • .. .. • • e • _ • • � .. • • • • .. • •. ••• • • .. • • • . • • • 75 December 7, 1942: Lanza and IlcCabe, re Getting a './ait6r in a Place for Commander Haff enden •••• _ ••..••• , .. • • • • • ••• . 75 December 7, 1942: Lanza, J..1cCabe, i • • Adon s and Commander Haffenden • ;. • t '0". ' • '0 75 December 8, 1942: Lanza , licCabe and Commander Kelly .. .. .... ..... 76 JJecember 8, 1942: Lanza ,.1IcCabe, Adonis, ��ngano and Commander Haf:f enden . ...e ••••.; •• t . ....... ..... to ' '.' • • 76 December 14, 1942: Ben Espy, .lIcCabe and Adonis ••••••••••••••� •• • � ••• ••••. ,�. 77 ... .. Decenber 26, 1942: Lanza and Lansky L·., . 77 v University of Rochester Department of Rare Books & Special Collections Thomas E. Dewey Papers C H APTER December 28, 1942: Lanza, Lansky and Lascari . , .. �., •., . , ... !""""";,,,� 77 Details of the Intelligence Activities as Helated by Mr. Polakoff ••••" . ... .. 77 Othe r Corroborat ing Evidence ••• , .,. ....... 79 The Intelligence Activities of Luciano and His Contacts: As Disclosed to and Viewed by Naval Personnel •••• . �.�.� ••�. So Captain MacFall ••••• � ••• , . .... .. ... ... .. 80 Captain Wharton •..•••.•..•••..•••.•• • ' • • '. 81 Colonel Cinco tta •.••.•..�, .,.............. 83 Commander Marsloe •..••••" .... ...........'�. 84 ' Commander Alfieri •.•.••.••.••••• ••••_