Sam Maceo
Encyclopedia
Salvatore Maceo, also known as Sam Maceo, was a businessman, community leader, and organized crime
boss in Galveston, Texas
in the United States. Because of his efforts, Galveston Island became a nationally known resort
town during the early and mid 20th century, a period known as Galveston's Open Era. He and his brother, both Sicilian
immigrants, owned numerous restaurant and casino venues including the now-vanished Hollywood Dinner Club and the Balinese Room
. Sometimes known as the "Velvet Glove," Sam's smooth style and ability to influence people were legendary. He was able to wield influence comparable to an elected official and he held relationships with celebrities and politicians throughout Texas and the United States. During his lifetime he and his island home were known nationwide.
The culture and economy Sam and the Maceo syndicate helped create on the island engendered the nickname "Free State of Galveston
." He was also involved in the development of the Las Vegas Strip
during the late 1940s, particularly the establishment of the Desert Inn
.
in the United States. He trained as a barber
and moved to Galveston in 1910, shortly before World War I, to start a business with his brother Rosario (Rose) Maceo
.
), and invested in the gang's gambling operations. Eventually the Beach Gang leader Ollie Quinn
and the brothers opened the Hollywood Dinner Club, the Gulf coast's most elegant night club at the time. Sam's smooth personality quickly made him the face of the nightclub. He is said to have developed his style and interpersonal skills by modeling Quinn's facility in dealing with politicians.
Fortuitous arrests of the leaders of the gangs allowed the brothers to gain control of the island's underworld. The Maceos gradually invested in numerous clubs and other entertainment ventures in the city involving gambling and bootlegging. Their other big venture, besides the Hollywood, was a club and casino
called Maceo's Grotto (later renamed the Balinese Room
) which opened in 1929. The Maceos soon controlled most of the gambling, prostitution, and other vice on the island. Their wealth and Sam's ability to deal with influential figures allowed him to exert increasing influence over other businesses and the government of the island.
The syndicate created by the Maceos quickly became a business empire. Through business dealings and partnerships Sam Maceo was able to earn millions for the syndicate.
The headquarters of the Maceo syndicate was the Turf Athletic Club. In addition to gym
nasium and steam room
facilities the club contained a bookmaking parlor for baseball and horse race betting as well as two clubs, the Studio Lounge and the Western Room. The business empire included dozens of bookmaking parlors, casinos, and clubs throughout the island and Galveston County
, particularly Kemah
and Dickinson
. Additionally the Maceos came to dominate vice and narcotic
s as far north as Dallas
.
The crown jewel of the Maceo empire was the Hollywood Dinner Club. Once the Hollywood was shut down by the Texas Rangers
in 1939 the Balinese Room
became the premiere club in the syndicate's holdings. Other properties held by the Maceos included the Moulin Rouge, Murdoch's Bingo, and the Pleasure Pier.
Investments in oil speculation helped to diversify the Maceo's portfolio and add to their wealth leading to the creation of Gulf Oil Properties. Other Maceo corporate holdings included Maceo and Company, Dickinson Equipment, Murdoch Bathhouse Company Inc., Gulf Coast Properties Inc., Gulf Entertainment places, and the Galveston Novelty Company.
Maceo cultivated relationships with business leaders throughout Galveston including William L. Moody
, head of one Galveston's most prominent families. Over the years Sam was able to secure substantial financing from Moody's American National Insurance Company
(ANICO) and many other institutions. Maceo established strong relationships with other leading families such as the Sealys and the Kempners. Major legitimate businesses on the island such as banking and hotels were, in fact, able to thrive in large part because of the illegal activities.
It would be a mistake to think that the Maceos owned all the major vice businesses on the island. Though dominant figures in many ways, they generally did not attempt to prevent others from prospering so long as it did not interfere with their businesses. Nevertheless, in the view of many the Maceos ran the island for three decades.
dancer from Rhode Island
in 1941. Sedgwick had begun her career in ballet at a young age, had performed for heads of state throughout Europe and had performed in Universal Studios
films such as "You're a Sweetheart" (1937). While traveling with a group of entertainers to Galveston, Edna met Sam and they were soon married. Sam and Edna had three children, Sam Jr., Edward, and Sedgie. Reports indicate that Edna was never really accepted by Galveston society. Following Sam's death Edna returned to Hollywood with her sons and married Henry Plitt of New York, founder of Plitt Theaters.
The Fertitta family and the Maceo family considered each other kin because of the marriage of Joseph Frances Fertitta to Sam's sister Olivia Maceo. The Fertittas became involved in the Maceo businesses due to this relationship.
The general public saw Maceo as a kind, generous person who genuinely cared for the Galveston community. Sam was known for favoring local companies when hiring contractors for the syndicate. He donated heavily to the church and to local charities. According to one story a local automobile dealer, on the edge of bankruptcy, fortuitously managed to sell a fleet of cars to all of the priests in the city, paid for by Sam Maceo. Another account says that when Maceo discovered that a local black
church could not afford a new roof, a work crew soon appeared free of charge to do the work.
Though the Maceo-owned clubs were raided numerous times the raids were rarely successful (with the important exception of the Hollywood Dinner Club being closed) and the Maceos were able to carry on their business throughout their careers.
in 1931 and this distinct advantage over Galveston gradually lured mob
figures such as New York City's Bugsy Siegel
to Las Vegas
. The competition created by the up-and-coming entertainment center in the desert
substantially challenged the island on the Gulf. Still even during the later years the Balinese Room was able to attract the likes of Tony Bennett
and Peggy Lee
, among others.
By the late 1940s corruption at the Texas state and county level was in decline. As investigation of the Maceo activities became more serious, the Maceos began plans to move their empire to Nevada. Sam Maceo became a major investor in the Desert Inn
, which opened in 1950, the largest and most elaborate casino resort on the Las Vegas Strip
at the time. Moe Dalitz
, who opened the Desert Inn, and Sam and had long been allies and business partners, and financing of the Las Vegas project was largely facilitated by the Maceos and Moodys through the ANICO (the company, for its part, is known to have lent millions to known mob figures). Sam and Rose Maceo transferred controlling interest of most of their Galveston empire to a new group dominated by the Fertitta family with investments coming from business interests around the island. The Fertitta group, however, never wielded the influence that the Maceos had.
Sam Maceo died of cancer in 1951 at Johns Hopkins Hospital
, just after the opening of the Desert Inn. His death made national obituary
news. Galveston's wide-open era ended a few years after Maceo's death when authorities raided the island's gambling establishments. The Balinese Room continued to operate as a restaurant until 2008, when it was completely destroyed by Hurricane Ike
.
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
boss in Galveston, Texas
Galveston, Texas
Galveston is a coastal city located on Galveston Island in the U.S. state of Texas. , the city had a total population of 47,743 within an area of...
in the United States. Because of his efforts, Galveston Island became a nationally known resort
Resort
A resort is a place used for relaxation or recreation, attracting visitors for holidays or vacations. Resorts are places, towns or sometimes commercial establishment operated by a single company....
town during the early and mid 20th century, a period known as Galveston's Open Era. He and his brother, both Sicilian
Sicily
Sicily is a region of Italy, and is the largest island in the Mediterranean Sea. Along with the surrounding minor islands, it constitutes an autonomous region of Italy, the Regione Autonoma Siciliana Sicily has a rich and unique culture, especially with regard to the arts, music, literature,...
immigrants, owned numerous restaurant and casino venues including the now-vanished Hollywood Dinner Club and the Balinese Room
Balinese Room
The Balinese Room was a well-known nightclub in Galveston, Texas, United States built on a pier stretching 600 feet from the Galveston Seawall over the waters of the Gulf of Mexico...
. Sometimes known as the "Velvet Glove," Sam's smooth style and ability to influence people were legendary. He was able to wield influence comparable to an elected official and he held relationships with celebrities and politicians throughout Texas and the United States. During his lifetime he and his island home were known nationwide.
The culture and economy Sam and the Maceo syndicate helped create on the island engendered the nickname "Free State of Galveston
Free State of Galveston
The Free State of Galveston was a whimsical name given to the island city of Galveston in the U.S. state of Texas during the early-to-mid-20th century. Today, the term is sometimes used to describe the culture and history of that era...
." He was also involved in the development of the Las Vegas Strip
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
during the late 1940s, particularly the establishment of the Desert Inn
Desert Inn
The Desert Inn was a Paradise, Nevada, hotel/casino that operated from April 24, 1950, to August 28, 2000. Designed by noted New York architect Jac Lessman, it was the fifth resort to open on the Las Vegas Strip. The property included an 18-hole golf course. Locals nicknamed the resort "The D.I."...
.
Early life
Salvatore Maceo was born in Palermo, Sicily to Vito Maceo and Angelina Sansone in 1894. In 1901 the Maceo family immigrated to Leesville, LouisianaLeesville, Louisiana
Leesville is a city in and the parish seat of Vernon Parish, Louisiana, United States. The population was 6,753 at the 2000 census. It is part of the Fort Polk South Micropolitan Statistical Area. The city is home to the Fort Polk U.S. Army installation...
in the United States. He trained as a barber
Barber
A barber is someone whose occupation is to cut any type of hair, and to shave or trim the beards of men. The place of work of a barber is generally called a barbershop....
and moved to Galveston in 1910, shortly before World War I, to start a business with his brother Rosario (Rose) Maceo
Rosario Maceo
Rosario Maceo , also known as Papa Rose or Rose Maceo, was a Sicilian immigrant and organized crime boss in Galveston, Texas in the United States. Because of his efforts and those of his brother Sam, Galveston Island became a nationally known resort town during the early and mid 20th century,...
.
Growth of an empire
As Prohibition took hold the brothers began to give gifts of wine (low-quality to be sure) that they were able to smuggle to their customers. As their customers became more interested in the liquor they gradually became more serious bootleggers. The Maceo brothers allied themselves with the Beach Gang, opened a "cold drink place," (i.e. speakeasySpeakeasy
A speakeasy, also called a blind pig or blind tiger, is an establishment that illegally sells alcoholic beverages. Such establishments came into prominence in the United States during the period known as Prohibition...
), and invested in the gang's gambling operations. Eventually the Beach Gang leader Ollie Quinn
Ollie Quinn
Ollie J. Quinn was a gang leader in Galveston, Texas in the United States during the early 1900s. He, with Dutch Voight, led the Beach Gang, one of the two gangs which controlled most of the Galveston underworld until the mid 1920s...
and the brothers opened the Hollywood Dinner Club, the Gulf coast's most elegant night club at the time. Sam's smooth personality quickly made him the face of the nightclub. He is said to have developed his style and interpersonal skills by modeling Quinn's facility in dealing with politicians.
Fortuitous arrests of the leaders of the gangs allowed the brothers to gain control of the island's underworld. The Maceos gradually invested in numerous clubs and other entertainment ventures in the city involving gambling and bootlegging. Their other big venture, besides the Hollywood, was a club and casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
called Maceo's Grotto (later renamed the Balinese Room
Balinese Room
The Balinese Room was a well-known nightclub in Galveston, Texas, United States built on a pier stretching 600 feet from the Galveston Seawall over the waters of the Gulf of Mexico...
) which opened in 1929. The Maceos soon controlled most of the gambling, prostitution, and other vice on the island. Their wealth and Sam's ability to deal with influential figures allowed him to exert increasing influence over other businesses and the government of the island.
The Maceo syndicate
The headquarters of the Maceo syndicate was the Turf Athletic Club. In addition to gym
Gym
The word γυμνάσιον was used in Ancient Greece, that mean a locality for both physical and intellectual education of young men...
nasium and steam room
Steam room
A steam room is an enclosed space with large amounts of high temperature steam, creating a high humidity environment. People sit in this room in a similar way to a sauna , for relaxation and purported benefits to health and well being. They can be commonly found in gyms, sanitariums and health...
facilities the club contained a bookmaking parlor for baseball and horse race betting as well as two clubs, the Studio Lounge and the Western Room. The business empire included dozens of bookmaking parlors, casinos, and clubs throughout the island and Galveston County
Galveston County, Texas
Galveston County is a county located in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. As of the 2010 U.S. Census, the population was 291,309. Its county seat is Galveston. League City is the largest city in Galveston County in terms of population; between...
, particularly Kemah
Kemah, Texas
Kemah is a city in the U.S. state of Texas within the Houston–Sugar Land–Baytown metropolitan area. The city's population was 2,330 as of the 2000 census. Located in Galveston County, Kemah's main industry comes from shipping...
and Dickinson
Dickinson, Texas
Dickinson is a city in Galveston County, Texas within the Houston–Sugar Land–Baytown metropolitan area. The population was 17,093 at the 2000 census.-History:...
. Additionally the Maceos came to dominate vice and narcotic
Narcotic
The term narcotic originally referred medically to any psychoactive compound with any sleep-inducing properties. In the United States of America it has since become associated with opioids, commonly morphine and heroin and their derivatives, such as hydrocodone. The term is, today, imprecisely...
s as far north as Dallas
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
.
The crown jewel of the Maceo empire was the Hollywood Dinner Club. Once the Hollywood was shut down by the Texas Rangers
Texas Ranger Division
The Texas Ranger Division, commonly called the Texas Rangers, is a law enforcement agency with statewide jurisdiction in Texas, and is based in Austin, Texas...
in 1939 the Balinese Room
Balinese Room
The Balinese Room was a well-known nightclub in Galveston, Texas, United States built on a pier stretching 600 feet from the Galveston Seawall over the waters of the Gulf of Mexico...
became the premiere club in the syndicate's holdings. Other properties held by the Maceos included the Moulin Rouge, Murdoch's Bingo, and the Pleasure Pier.
Investments in oil speculation helped to diversify the Maceo's portfolio and add to their wealth leading to the creation of Gulf Oil Properties. Other Maceo corporate holdings included Maceo and Company, Dickinson Equipment, Murdoch Bathhouse Company Inc., Gulf Coast Properties Inc., Gulf Entertainment places, and the Galveston Novelty Company.
Maceo cultivated relationships with business leaders throughout Galveston including William L. Moody
William Lewis Moody, Jr.
William Lewis Moody Jr. was an American financier and entrepreneur from Galveston, Texas, who founded a private bank, an insurance company, and one of the largest charitable foundations in the United States. Moody was active in the day-to-day operations of his companies until two days before his...
, head of one Galveston's most prominent families. Over the years Sam was able to secure substantial financing from Moody's American National Insurance Company
American National Insurance Company
American National Insurance Company is a major American insurance corporation based in Galveston, Texas. The company and its subsidiaries operate in all 50 U.S. states, the District of Columbia, Puerto Rico, and American Samoa.-Company description:...
(ANICO) and many other institutions. Maceo established strong relationships with other leading families such as the Sealys and the Kempners. Major legitimate businesses on the island such as banking and hotels were, in fact, able to thrive in large part because of the illegal activities.
It would be a mistake to think that the Maceos owned all the major vice businesses on the island. Though dominant figures in many ways, they generally did not attempt to prevent others from prospering so long as it did not interfere with their businesses. Nevertheless, in the view of many the Maceos ran the island for three decades.
Personal life
Maceo first married Jessica McBride in Galveston. He later remarried to Edna Marie Sedgwick, a balletBallet
Ballet is a type of performance dance, that originated in the Italian Renaissance courts of the 15th century, and which was further developed in France and Russia as a concert dance form. The early portions preceded the invention of the proscenium stage and were presented in large chambers with...
dancer from Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
in 1941. Sedgwick had begun her career in ballet at a young age, had performed for heads of state throughout Europe and had performed in Universal Studios
Universal Studios
Universal Pictures , a subsidiary of NBCUniversal, is one of the six major movie studios....
films such as "You're a Sweetheart" (1937). While traveling with a group of entertainers to Galveston, Edna met Sam and they were soon married. Sam and Edna had three children, Sam Jr., Edward, and Sedgie. Reports indicate that Edna was never really accepted by Galveston society. Following Sam's death Edna returned to Hollywood with her sons and married Henry Plitt of New York, founder of Plitt Theaters.
The Fertitta family and the Maceo family considered each other kin because of the marriage of Joseph Frances Fertitta to Sam's sister Olivia Maceo. The Fertittas became involved in the Maceo businesses due to this relationship.
Public perceptions
In the business world Sam Maceo was known as a being pleasant and persuasive. He was influential with politicians, business leaders, and Hollywood celebrities alike.The general public saw Maceo as a kind, generous person who genuinely cared for the Galveston community. Sam was known for favoring local companies when hiring contractors for the syndicate. He donated heavily to the church and to local charities. According to one story a local automobile dealer, on the edge of bankruptcy, fortuitously managed to sell a fleet of cars to all of the priests in the city, paid for by Sam Maceo. Another account says that when Maceo discovered that a local black
African American
African Americans are citizens or residents of the United States who have at least partial ancestry from any of the native populations of Sub-Saharan Africa and are the direct descendants of enslaved Africans within the boundaries of the present United States...
church could not afford a new roof, a work crew soon appeared free of charge to do the work.
Criminal investigation
In 1937 federal charges were filed against Sam Maceo who was accused of being the mastermind of a nationwide narcotics trafficking scheme. Maceo was released on bail and fought extradition to New York. Ultimately he was acquitted in 1942. There was a great deal of speculation in the Galveston community as to whether Maceo was framed including speculation that the Moody family was involved.Though the Maceo-owned clubs were raided numerous times the raids were rarely successful (with the important exception of the Hollywood Dinner Club being closed) and the Maceos were able to carry on their business throughout their careers.
End of an era
The heyday of the Free State was over by the 1940s. Because of conflicts with the United States Treasury, the Hollywood Dinner Club was shut down in the late 1930s. The local clubs found it increasingly difficult to attract major entertainment figures. Gambling had been legalized in NevadaNevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
in 1931 and this distinct advantage over Galveston gradually lured mob
American Mafia
The American Mafia , is an Italian-American criminal society. Much like the Sicilian Mafia, the American Mafia has no formal name and is a secret criminal society. Its members usually refer to it as Cosa Nostra or by its English translation "our thing"...
figures such as New York City's Bugsy Siegel
Bugsy Siegel
Benjamin "Bugsy" Siegel was an American gangster who was involved with the Genovese crime family...
to Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
. The competition created by the up-and-coming entertainment center in the desert
Desert
A desert is a landscape or region that receives an extremely low amount of precipitation, less than enough to support growth of most plants. Most deserts have an average annual precipitation of less than...
substantially challenged the island on the Gulf. Still even during the later years the Balinese Room was able to attract the likes of Tony Bennett
Tony Bennett
Tony Bennett is an American singer of popular music, standards, show tunes, and jazz....
and Peggy Lee
Peggy Lee
Peggy Lee was an American jazz and popular music singer, songwriter, composer, and actress in a career spanning six decades. From her beginning as a vocalist on local radio to singing with Benny Goodman's big band, she forged a sophisticated persona, evolving into a multi-faceted artist and...
, among others.
By the late 1940s corruption at the Texas state and county level was in decline. As investigation of the Maceo activities became more serious, the Maceos began plans to move their empire to Nevada. Sam Maceo became a major investor in the Desert Inn
Desert Inn
The Desert Inn was a Paradise, Nevada, hotel/casino that operated from April 24, 1950, to August 28, 2000. Designed by noted New York architect Jac Lessman, it was the fifth resort to open on the Las Vegas Strip. The property included an 18-hole golf course. Locals nicknamed the resort "The D.I."...
, which opened in 1950, the largest and most elaborate casino resort on the Las Vegas Strip
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
at the time. Moe Dalitz
Moe Dalitz
Morris Barney "Moe" Dalitz was a Jewish American bootlegger, racketeer, casino owner and philanthropist who was one of the major figures who helped shape Las Vegas, Nevada in the 20th century. He was often referred to as Mr...
, who opened the Desert Inn, and Sam and had long been allies and business partners, and financing of the Las Vegas project was largely facilitated by the Maceos and Moodys through the ANICO (the company, for its part, is known to have lent millions to known mob figures). Sam and Rose Maceo transferred controlling interest of most of their Galveston empire to a new group dominated by the Fertitta family with investments coming from business interests around the island. The Fertitta group, however, never wielded the influence that the Maceos had.
Sam Maceo died of cancer in 1951 at Johns Hopkins Hospital
Johns Hopkins Hospital
The Johns Hopkins Hospital is the teaching hospital and biomedical research facility of Johns Hopkins University School of Medicine, located in Baltimore, Maryland . It was founded using money from a bequest by philanthropist Johns Hopkins...
, just after the opening of the Desert Inn. His death made national obituary
Obituary
An obituary is a news article that reports the recent death of a person, typically along with an account of the person's life and information about the upcoming funeral. In large cities and larger newspapers, obituaries are written only for people considered significant...
news. Galveston's wide-open era ended a few years after Maceo's death when authorities raided the island's gambling establishments. The Balinese Room continued to operate as a restaurant until 2008, when it was completely destroyed by Hurricane Ike
Hurricane Ike
Hurricane Ike was the second-costliest hurricane ever to make landfall in the United States, the costliest hurricane ever to impact Cuba and the second most active hurricane to reach the Canadian mainland in the Great Lakes Region after Hurricane Hazel in 1954...
.
See also
- Free State of GalvestonFree State of GalvestonThe Free State of Galveston was a whimsical name given to the island city of Galveston in the U.S. state of Texas during the early-to-mid-20th century. Today, the term is sometimes used to describe the culture and history of that era...
- Galveston, TexasGalveston, TexasGalveston is a coastal city located on Galveston Island in the U.S. state of Texas. , the city had a total population of 47,743 within an area of...
- Rosario MaceoRosario MaceoRosario Maceo , also known as Papa Rose or Rose Maceo, was a Sicilian immigrant and organized crime boss in Galveston, Texas in the United States. Because of his efforts and those of his brother Sam, Galveston Island became a nationally known resort town during the early and mid 20th century,...
- Sicilian American
- Tilman J. FertittaTilman J. FertittaTilman Joseph Fertitta is an American businessman and the founder, chairman of the board, President, CEO and primary shareholder of Landry's Restaurants...