◆ SpookStack

Bre a a 5 / ‘ ae Memorandum for the Director. ~4- July 25, 1936 and contractors' relationship, in that the jobbers would buy the material end design the dresses while the contractors would do the sewing, operating and finishing of the dresses; that prior to the Code the jobbers could bid one contractor against the other until the price of contractor service reached a starvation figure; that the Code set up machinery whereby the jobber was responsible to the worker and contractors for a decent wage, and in the event he didn't pay it the victim could present his case to an impartial chairman who would hear the facts and designate the reimbursing of the complainant, if such was warranted. The large jobbers, particularly those in the low price wholesale field, rebelled against this restraint and employed racketeers for protection. Le and Charles Gurrah, with five others, were named as being the outstanding racketeers employed b Ww zht to evade the articles of the Code. further that he had heard that contractors who before the impartial chairman against certain wholesale firms in the Dress Industry, had been visited at night by gangsters and threatened with death. The individuals who were threat and the gangsters who made the threats were unknown ait ::.. this was a rumor that he was unable to verify. The New York Office has conducted an extensive investigation on the Dress Industry and advised the Bureau by letter on July 3, 1936 that the Dress Industry investigation would be completed in approximately six or eight weeks, This investigation, however, has failed to develop any information definitely connecting Buckhalter with the alleged racketeering activities in this industry. A news article in the New York American appeared on April 30, 1936, which was entitled "The Garment Racket Drive Opens", and stated in substance that racketeers moved into the office of Arthur Saffer, Inc., 1239 Broadway, which is a men's clothing concern, and compelled him to be banker and pay off men for them. The article quoted Murray I. Gurfern, who is Special Prosecutor Dewey's assistant as follows: "Starting his contacts thocugn personal friends, patter was drawn in by Louis Buckhalvexr alias Lepke and Charles alias Jacob’Shapiro, until he could not extricate himself from his criminal associates. Lepke and Shapiro, known asGurrah, simply made their headquarters at Saffer's offices installing their henchmen who terrorized business men of the garment district",