Part 34

This time the tipster ran into a blank wall. He learned that the sacks of marihuana were still stacked in the shed on Pena’s ranch. But that was all he could learn, except that in the past Pena had smuggled shipments of marihuana across the Rio Grande at a bend in the river about five miles upstream from the little West Texas town of San Ygnacio. When the water was low, the carriers were able to walk across the stream. If the river rose from sudden rainfalls, the marihuana was floated across the river on inflated inner tubes or on inflated rubber boats. In each case, an automobile was waiting at a designated spot to receive the contraband.

Ellis ordered a continuous surveillance of the river bend. For more than three months agents kept watch in relays, hiding in the mesquite near a small roadside park on top of a hill overlooking the sweep of the river. But the watches were fruitless. Each time Ellis inquired about the sacks of marihuana at Pena’s ranch, he was told they were still there.

In December, Ellis was reading the routine reports from New York of marihuana seizures that had been made in the city. These reports were circulated periodically to all agents-in-charge throughout the United States. There seemed to be nothing unusual in this particular batch of reports until Ellis came across an account of the arrest of one Wilfredo Fernandez, who had been caught with 16 pounds of marihuana in his possession. The line which drew his attention said that the marihuana was packed in one-pound lots in paper sacks which had been enclosed in plastic and sealed with adhesive tape. Ellis sensed that, somehow, Muno Pena had outwitted him, and the very thought enraged him. He sent a message to New York for more information on the arrest of Fernandez and where he had obtained the marihuana.

Fernandez, it developed, had been arrested in November for possession of cocaine. When his apartment was searched, agents came across the packaged marihuana. Fernandez sullenly admitted that he had bought it in Chicago from a dealer he knew only as “The Lawyer.” The Lawyer had taken him out on Lawrence Avenue, where they had met a man who appeared to be a Mexican, driving a stake truck with a green body. The Mexican had taken the marihuana from a large cotton sack--and then driven away. He had never seen the Mexican before and didn’t know where he lived.

“He was a skinny fellow about five feet eight tall, and he had black hair and a pale complexion,” Fernandez said. “That’s all I know.”

Ellis knew in his heart that this marihuana had come from Pena. And later he was to learn how cleverly Pena had outwitted him. Pena had stacked the sacks of processed marihuana in the shed on his ranch where any of the workers could see them as they passed by. But what the workers didn’t know was that one night Pena had removed the marihuana to a hiding place known only to himself and substituted other sugar sacks which looked identical.

One night Pena had taken the sacks to the river, where he met a confederate. They had carried the sacks across the river to the highway where the confederate had hidden his automobile, to which was attached a U-Drive-It trailer. The marihuana was stacked in the trailer and then covered with a mattress, a set of bed springs and a few household articles. These were lashed down with a tarpaulin over them--and then the driver headed north. To all outward appearances, he was a worker moving with his household goods from one job to another.

Ellis asked Chicago Customs agents to check on long distance telephone calls made in November by The Lawyer. And within a few days he received a list of names ranging from barkeeps to uncles, aunts, and cousins, horse track bookies, and pool parlor operators.

Meanwhile, agents in Laredo had been checking on Pena’s associates and on his family. They made a list of everyone known to have any connection, even casually, with Muno Pena.

It was when Ellis checked these two lists of names that he found there was one name which appeared on both lists. The name was Isuaro Garza. The agents’ information was that Garza was married to Muno Pena’s sister. Mrs. Garza and her three children lived in Laredo and maintained a home there. But Garza, for some months, had been living on the outskirts of Kenosha, Wisconsin. Occasionally Mrs. Garza and the children would drive north to spend a few days with Garza. They never stayed for long and always returned to their Laredo home. No one seemed to know what Garza was doing in Kenosha.

Ellis thought he knew what Garza was doing there. He was certain that Garza was the man from whom The Lawyer had obtained the marihuana--and that Garza was Pena’s man, making deliveries in Chicago from the 1,000 pounds of marihuana smuggled across the Rio Grande.

Ellis was so positive of this connection that he appealed to Washington for permission to take six agents from the Laredo office--men long accustomed to working on this type of case--for an investigation of Garza. But headquarters was in the midst of an economy wave. Ellis was told that funds were tight and that it would be impossible for him to take six men from Laredo on an uncertain mission. However, he was given authority to go to Kenosha himself and to take along one aide. If he could make a case against Garza within ten days, well and good. But at the end of ten days he must return at once to his post in Laredo.

Ellis chose Agent G. L. Latimer to accompany him. The two set out for Kenosha, driving day and night, through a snow storm which was sweeping the Middle West. They located Garza’s home. He was living in a small white frame house just outside the northern edge of the town.

“There were two or three feet of snow on the ground,” Ellis recalls, “and it looked like we were going to have to stake out the place by living in sleeping bags. But there was a motel nearby which was closed for the winter. We got permission from the owner to slip into the court from which we could see Garza’s house. We were sure he was our man--but we wanted to know who was calling for the marihuana and where it was hidden. We wanted to catch the whole apparatus if possible. So day and night we watched Garza’s house.”

Occasionally Garza would leave the house for a trip to the grocery store, to go to a movie, or to visit in the city. The agents were unable to detect him making any deliveries. But on the tenth day--the last day of grace for Ellis and Latimer to be away from their Laredo posts--a car drove up to the white frame house. A man entered and shortly came out carrying a package which he stowed in his automobile. When he had driven a short distance from Garza’s home, he was halted. Ellis found the package filled with marihuana. It was in a paper sack enclosed in plastic and taped with adhesive.

With this evidence, a search warrant was obtained and the agents advanced on Garza’s house. It was nearing midnight when Ellis knocked at the door. A light came on and then the door was opened and a voice said, “Who is it? What do you want?”

Ellis shoved the door open, revealing a skinny Mexican standing in his long-handled underwear, shivering from the cold.

“We are U.S. Customs agents,” Ellis said. “We have a warrant to search this place.”

Isauro Garza submitted meekly. A loaded pistol lay on a table near his bed, but he gave no resistance. The agents found 720 one-pound sacks of marihuana hidden in closets and in the attic--the largest haul of marihuana ever to be made in the United States. Its retail value was $720,000.

Garza feigned surprise over the discovery of the marihuana. He told officers he “had no idea what was in the sacks.” He said a man named Tony called at his home one day and left a truckload of sacks. Tony asked him to keep them for him. Another fellow named Pepe came from Chicago three or four times. “He picked up some of the stuff and gave me $600 for rent and expenses--but I didn’t know what it was all about,” Garza said.

A jury thought otherwise. Garza was sent to prison for five years. And Muno Pena? He had lost another round to Dave Ellis, but he continued his operations on a smaller scale. Customs agents are waiting for the day when he places one foot across the border--and then he’ll be out of circulation for quite a while.

A DIRTY BUSINESS

A cunning and ruthless hoodlum, two crooked Customs employees, two Greek narcotics peddlers in Shanghai and a supporting cast of killers, goons and dupes formed one of the greatest narcotics syndicates the United States has ever known. Over a span of less than two years in 1936–1937, this gang smuggled into the country narcotics believed by Customs agents to have had a retail value of at least $10 million. Their system was so simple that it was almost foolproof. Almost ... but not quite.

The prime mover in this profitable operation was Louis “Lepke” Buchalter--a name which perhaps doesn’t mean much to the younger generation. But in the prohibition era and the years of the depression, Lepke built a fantastic financial empire on a foundation of terror, violence and murder combined with a genius for organizing. He was, in many respects, more powerful and more successful than “Scarface” Al Capone and dozens of other hoodlums of the times who were more publicized in the nation’s press.

Louis Lepke Buchalter rose to power in the shadow of the Jazz Age, the era which evokes sentimental memories for so many Americans. But Lepke’s world was about as sentimental as a tommygun.

He was a small, slender man--5 feet 7--with a dark complexion and black hair which he parted on the side. He was soft-spoken and seemingly humble in manner. He had large brown eyes that appeared as soft and gentle as the eyes of a fawn. But his eyes only masked the evil in this man who schemed and killed until he ranked at the top of the list of U.S. criminals.

By all odds, Lepke was the most brilliant--and the most dangerous--of the criminals. It was Lepke who showed the underworld how to infiltrate and take over control of labor unions, and how to become silent partners in the management of industries. It was Lepke who put murder on a wholesale basis with an organization that became known as Murder, Inc. It was Lepke who found the chink in the U.S. Customs Bureau’s defenses against narcotics smuggling--and who made narcotics smuggling almost a pleasant pastime.

Lepke is worth at least a footnote in any history of our times because he symbolized an era of graft, corruption and violence the likes of which the nation had never known before. He was born on February 6, 1897, in Manhattan’s Lower East Side, one of a family of eleven children. The family lived in shattering confusion in a small, crowded apartment over the hardware store owned by the father, Barnet Buchalter.