Fact-checked by Grok 2 weeks ago

Dutch Schultz

Arthur Flegenheimer (August 6, 1902 – October 24, 1935), better known as Dutch Schultz, was an American mobster who rose to prominence in New York City's underworld during the Prohibition era through bootlegging and later dominated illegal gambling operations including the numbers racket.^[1]^[2]^[3] Born in the Bronx to German-Jewish immigrant parents, Schultz began his criminal career with petty theft and burglary before capitalizing on the demand for illicit alcohol, establishing a network of speakeasies and hijacking rival shipments in brutal turf wars that included clashes with Jack "Legs" Diamond.^[2]^[3] After Prohibition's repeal diminished bootlegging profits, he shifted focus to extorting and controlling Harlem's policy banks, using enforcers to muscle out local operators and amass wealth estimated in the millions, while evading federal taxes through layered corporate fronts.^[4]^[3] His empire unraveled when he plotted to murder special prosecutor Thomas E. Dewey, a move vetoed by the National Crime Syndicate; in retaliation, Schultz was ambushed and fatally shot on October 23, 1935, at the Palace Chop House in Newark, New Jersey, by suspected syndicate hitmen, dying the next day after uttering cryptic final words.^[5]^[6]^[3]

Early Life

Childhood and Family Background

Arthur Simon Flegenheimer, later known as Dutch Schultz, was born on August 6, 1901, in the Bronx borough of New York City to German-Jewish immigrant parents Herman and Emma (née Neu) Flegenheimer.^[7] ^[8] Some records indicate a birth year of 1902, though 1901 aligns with contemporary accounts and memorials.^[1] Herman, who had worked as a plumber and saloonkeeper after arriving from Germany, abandoned the family around 1910, leaving Emma listed as divorced in the U.S. Census that year and forcing her to support her children through menial labor such as taking in laundry.^[9] ^[10] The Flegenheimers resided in working-class immigrant enclaves of the Bronx and later Manhattan, amid the dense urban poverty characteristic of early 20th-century New York, where waves of European Jewish migrants faced economic competition, antisemitism, and limited opportunities in factories or service trades.^[2] Emma's efforts to maintain the household exposed her son to the harsh realities of immigrant survival, including overcrowded tenements and reliance on community networks in Yiddish-speaking neighborhoods.^[11] Arthur, the second of two sons, grew up in this environment of financial instability, with his father's departure exacerbating the family's dependence on his early contributions to the household.^[9] Flegenheimer received only a basic formal education, leaving school after the eighth grade around age 14 to take on odd jobs such as delivering newspapers and working in local businesses, reflecting the common path for children in impoverished immigrant families who prioritized immediate economic needs over prolonged schooling.^[12] ^[13] This early exit from education immersed him further in the street-level hustles of New York's lower classes, where ethnic gangs and informal economies provided alternative structures amid systemic barriers to upward mobility for recent arrivals.^[14]

Initial Criminal Involvement

Arthur Flegenheimer, later known as Dutch Schultz, began his criminal activities in adolescence following his father's abandonment of the family around 1908, dropping out of school to support his mother and siblings through odd jobs that soon veered into petty theft and hooliganism in the Bronx.^[2] By age 17 in 1919, he faced his first significant arrest for burglary after breaking into an apartment, leading to a conviction and sentence of 17 months in the penitentiary on Blackwell's Island, now Roosevelt Island.^[2]^[7]^[3] This period marked his only incarceration despite a subsequent career rife with violent offenses, as contemporaries noted his evasion of further prison time through influence and intimidation.^[15] Upon release around 1920, Flegenheimer adopted the street moniker "Dutch Schultz," derived from his German-Jewish heritage—"Dutch" as a corruption of "Deutsch"—and possibly appropriated from a local hoodlum or boxer of similar name, reflecting the ethnic underworld nicknames common in early 20th-century New York.^[1]^[2] He transitioned from isolated burglaries and larcenies to associating with small-time Bronx gangs, where he honed skills in extortion and hijacking shipments, precursors to larger rackets amid the post-World War I economic shifts and rising organized vice in the city.^[16]^[9] These early involvements exposed him to the hierarchical structures of New York’s Jewish and Italian criminal networks, though he initially operated on the fringes, avoiding major syndicates until partnering with figures like Joey Noe in low-level enforcement roles at illicit venues.^[17] Police records from the era document multiple minor arrests for disorderly conduct and petty larceny prior to his burglary conviction, underscoring a pattern of escalating juvenile delinquency in the immigrant slums.^[2]^[18]

Rise in Organized Crime

Bootlegging Empire During Prohibition

Dutch Schultz capitalized on the black market created by the 18th Amendment, ratified on January 16, 1919, and enforced via the Volstead Act starting January 17, 1920, which banned the production, sale, and transportation of alcohol until its repeal in 1933. This federal policy distorted legal markets, generating premium prices for illicit liquor and incentivizing entrepreneurial ventures in smuggling and distribution, as legal alternatives were criminalized. Schultz, operating primarily in the Bronx, focused on beer running—importing and distributing fermented malt beverages from hijacked or clandestinely brewed sources—to supply speakeasies and illegal bars, adapting to demand that persisted despite enforcement efforts.^[1]^[19] In the early 1920s, Schultz entered the trade amid the Bronx beer wars, partnering with Joey Noe around 1925 after working as a bouncer at Noe's Hub Social Club speakeasy. Their operation expanded rapidly, controlling distribution networks that supplied hundreds of Bronx establishments with beer trucked in from breweries in New Jersey and upstate New York, often through violent intimidation to coerce purchases and eliminate competitors. Schultz employed brutal tactics, including beatings and murders, to secure territories, as no strategy was deemed off-limits in persuading saloon owners to buy exclusively from their drops; this ruthlessness helped them dominate the borough's beer trade by the late 1920s.^[3]^[9] Mentored by gambler and fixer Arnold Rothstein, who provided strategic guidance on scaling operations, Schultz formed alliances that bolstered his network while navigating rivalries, such as with the Shapiro brothers—Jacob "Gurrah" and Irving—who initially resisted buying from Schultz and Noe, sparking turf conflicts resolved through escalating violence after Noe's 1928 murder. By the mid-1920s, their syndicate reportedly generated millions in annual revenue from bootlegging alone, reflecting the lucrative premiums of Prohibition-era scarcity where a barrel of beer could fetch several times its pre-ban value. This wealth accumulation stemmed directly from policy-induced shortages, enabling Schultz to amass a fortune absent in lawful commerce.^[19]^[14]

Expansion into Numbers Racket and Extortion

Following the end of Prohibition in December 1933, Dutch Schultz shifted focus from bootlegging to more stable illicit enterprises, particularly the policy game, also known as the numbers racket, which involved bettors wagering small sums on three-digit numbers derived from stock exchange clearings or similar public data.^[4] In Harlem during the early 1930s, Schultz targeted the lucrative operations run predominantly by African-American bankers, using a combination of political influence through Tammany Hall allies like James J. Hines, police payoffs, and intimidation to coerce compliance.^[4] His attorney, Dixie Davis, played a key role by convening meetings at Democratic clubs such as the Oswasco, where operators like Alexander Pompez—a prominent Cuban-American policy banker—were pressured into paying weekly tribute, reportedly $600, for "protection" while retaining nominal control of their banks.^[4] Similarly, figures like Joseph Matthias Ison faced demands of $500 weekly, enabling Schultz to extract a cut without fully disrupting daily collections by runners who gathered bets from street-level players.^[4] Schultz's takeover marginalized independent operators, including resilient figures like Stephanie St. Clair, who publicly advertised against his incursions in Black newspapers but ultimately capitulated under sustained pressure, allowing him to consolidate control over major Harlem banks run by Pompez, Ison, and Wilfred Brunder.^[20] ^[4] To boost profitability, Schultz employed accountant Otto "Abbadabba" Berman, who manipulated winning numbers through insider access to exchange data, ensuring predictable payouts of about 25% to winners while the house retained the rest; this generated an estimated average daily gross of $35,000 from Harlem alone, translating to annual revenues of $12–14 million across his policy network.^[4] Early enforcers like Vincent Coll aided in securing compliance through strong-arm tactics before internal disputes led to Coll's defection in 1930, after which Schultz relied on loyal lieutenants to maintain order among collectors and bankers.^[2] Beyond Harlem, Schultz expanded policy operations into upstate New York cities like Albany and Syracuse, leveraging corruption to embed rackets in local economies. In Albany, he bribed politicians and officials to tolerate policy banks, integrating them with union activities for cover and enforcement.^[21] Similar tactics in Syracuse involved payoffs to secure operational leeway, allowing steady cash flow from working-class bettors amid the Depression's economic desperation. Schultz also infiltrated labor unions, such as Local 359 of the Seafood Workers, extorting wholesalers and restaurant owners through threats of strikes or violence, often executed via hulking associates like Jules Modgilewsky (alias "Big Jules").^[22] This diversification demonstrated Schultz's operational pragmatism, as the numbers racket provided reliable, low-overhead income less vulnerable to federal crackdowns than liquor, supplemented by slot machine placements in sympathetic venues and labor extortion schemes that capitalized on post-repeal union disarray.^[19] Precise bookkeeping by Berman ensured audited ledgers masked illicit gains, while political bribes sustained territorial dominance against rivals.^[4]

Gang Conflicts and Violence

Dutch Schultz's rivalry with Jack "Legs" Diamond escalated during the late 1920s amid competition for control of bootlegging territories in New York. The feud intensified after Diamond's gang allegedly ambushed and killed Schultz's partner, Arnold Rothstein associate Joey Noe, in October 1928, prompting Schultz to retaliate by targeting Diamond's associates.^[2] Multiple assassination attempts on Diamond followed, with the gangster surviving several shootings, earning him the moniker "Clay Pigeon of the Underworld." Schultz reportedly expressed frustration over Diamond's resilience, questioning if anyone could kill him permanently.^[23] The conflict culminated on December 18, 1931, when Diamond was shot 17 times in his Albany rooming house by assailants believed to be Schultz's hitmen, ending the direct rivalry.^[1] Internal betrayal emerged with enforcer Vincent "Mad Dog" Coll, who demanded equal partnership in Schultz's operations around 1930 and subsequently formed his own gang to muscle into Schultz's numbers racket and protection rackets. Coll's tactics included kidnapping Schultz enforcers for ransom, such as the failed July 28, 1931, attempt on lieutenant Joey Rao, which sparked public gun battles in the Bronx.^[24] Schultz responded by ordering the May 1931 murder of Coll's brother Peter, escalating the war that claimed numerous lives on both sides through 1932.^[25] Schultz placed a $50,000 bounty on Coll, who was ultimately machine-gunned to death on February 9, 1932, outside a Harlem drugstore, though Schultz's direct involvement in the hit remains attributed to contract killers.^[26] These conflicts exemplified violence as a mechanism for enforcing territorial monopolies and resolving disputes in Prohibition-era markets lacking legal recourse, with Schultz subcontracting hits to specialists rather than conducting them personally. Schultz-linked killings, including rivals, disloyal subordinates, and witnesses, numbered in the dozens across his operations, serving to deter encroachment and maintain dominance in beer distribution and extortion.^[5] Such targeted eliminations reflected calculated responses to threats rather than indiscriminate aggression, aligning with the economic incentives of unregulated criminal enterprises.^[9]

Legal Confrontations

Tax Evasion Indictments and Trials

In January 1933, Arthur Flegenheimer, known as Dutch Schultz, was federally indicted in New York for income tax evasion, charged with failing to file returns or report approximately $92,000 in taxable income derived primarily from his bootlegging operations during 1929, 1930, and 1931.^[27] ^[28] The U.S. Attorney's office, led by George Z. Medalie, alleged Schultz concealed profits from his Bronx-based beer distribution racket by routing funds through associates and avoiding documentation, a common tactic among Prohibition-era operators to obscure illicit revenues while complying minimally with tax laws that treated such gains as taxable despite their criminal origin.^[27] This pursuit exemplified the Internal Revenue Service's strategy of targeting organized crime figures through financial audits, as proving predicate offenses like bootlegging proved challenging amid corrupt local enforcement, though critics noted the inherent contradiction of federal policy in criminalizing activities while demanding taxes on their proceeds.^[1] Following the indictment, Schultz evaded capture for over 20 months, fleeing to upstate New York hideouts under aliases and relying on a network of lieutenants to manage his numbers racket and extortion enterprises, which by then generated an estimated $7 million in total wealth from diversified illicit sources including policy betting and labor racketeering.^[3] ^[9] He surrendered voluntarily in November 1934 after negotiations, posting bail and preparing defenses that included relocating the trial venue to rural areas like Syracuse and Malone to empanel less urban juries potentially sympathetic to anti-Prohibition sentiments.^[3] ^[1] Prosecutors under Thomas E. Dewey emphasized discrepancies in Schultz's accounting, such as unreported cash flows exceeding $100,000 annually, but faced hurdles in tracing laundered funds through front businesses.^[28] Schultz's first federal trial in Syracuse concluded with a hung jury on April 29, 1935, after jurors deadlocked on the validity of extrapolated income estimates from informant testimony.^[28] The retrial in Malone ended in acquittal on August 1, 1935, following 28 hours of deliberation by a jury of local farmers, whom presiding Judge Frederick Bryant publicly rebuked for ignoring evidence of unreported earnings, calling the verdict a "blow to law enforcement."^[29] ^[30] Despite the federal victory, Schultz faced parallel New York state tax charges, resulting in a conviction that carried a suspended sentence, allowing him temporary reprieve amid ongoing scrutiny of his finances but underscoring the government's layered approach to dismantling illicit empires through revenue enforcement rather than direct prohibition violations.^[31] This selective federal emphasis on taxes, while effective against figures like Al Capone, highlighted enforcement inconsistencies, as legal gains from legalized post-Repeal beer sales went untaxed in practice during Schultz's peak, revealing causal tensions between moralistic bans and fiscal pragmatism.^[1]

Threats to Law Enforcement

Following his acquittal on federal income tax evasion charges in a second trial concluded in mid-1935, Dutch Schultz perceived Special Prosecutor Thomas E. Dewey's pivot toward dismantling the Bronx numbers racket—Schultz's primary revenue source generating an estimated $20 million annually—as an existential peril to his criminal enterprise.^[31]^[3] Schultz, whose operations depended on policy banks processing thousands of daily bets, interpreted Dewey's strategy as a deliberate escalation beyond tax matters into core extortion and gambling activities, prompting defensive countermeasures disproportionate to prior legal skirmishes.^[31] In internal discussions among his lieutenants during October 1935, Schultz advocated assassinating Dewey, along with potential witnesses and judicial figures tied to ongoing probes, framing such actions as preemptive strikes to neutralize threats before they could yield convictions or dismantle his network.^[5] These proposals, articulated in heated strategy sessions, exposed Schultz's deepening paranoia, as he fixated on individual prosecutors as personal vendettas rather than systemic challenges, insisting on violent retaliation despite risks of broader crackdowns.^[5] Accounts from later mob testimonies and law enforcement reconstructions indicate Schultz outlined rudimentary plots, including targeting Dewey during public appearances, underscoring his readiness to provoke open conflict over selective enforcement.^[1] This stance diverged markedly from contemporaries in the nascent Mafia Commission, who prioritized restraint against high-profile officials to avoid inviting intensified federal scrutiny, as evidenced by their collective veto of Schultz's schemes in favor of accommodations like jurisdictional carve-outs or witness intimidation short of murder.^[5] Schultz's insistence on assassination reflected a deviation from evolving codes emphasizing business continuity over impulsive defiance, positioning his rackets—and by extension, affiliated syndicates—as vulnerable to retaliatory waves of prosecutions that could erode Prohibition-era gains.^[31]

Assassination and Demise

Mob Commission Deliberations

In October 1935, the National Crime Syndicate—a confederation of major organized crime leaders including Lucky Luciano, Meyer Lansky, and representatives from New York families—held deliberations on Dutch Schultz's proposal to assassinate Manhattan Special Prosecutor Thomas E. Dewey.^[32] Schultz, facing aggressive tax evasion prosecutions led by Dewey that had already resulted in two indictments and weakened his bootlegging and numbers rackets, argued the hit was essential for his survival and continued operations.^[5] The group, functioning as a precursor to the formalized Mafia Commission established later that year, prioritized collective stability by maintaining an uneasy truce among ethnic gangs in the post-Prohibition underworld, viewing Schultz's plan as a reckless escalation that could provoke widespread federal crackdowns.^[3] Luciano led the opposition, contending that Dewey's high public profile as a crusading attorney—later twice elected New York governor and briefly the Republican presidential nominee—would ensure the assassination drew unprecedented law enforcement retaliation, endangering the Syndicate's national rackets in gambling, extortion, and labor unions.^[5] The vote was unanimous against the proposal, with participants including Luciano's nascent Genovese family allies and Jewish syndicate members like Lansky emphasizing that individual threats to powerful prosecutors undermined the fragile peace enforcing territorial divisions and profit-sharing agreements.^[32] Joseph Bonanno, in his autobiography recounting early Syndicate dynamics, described the idea of targeting Dewey as "insane," underscoring how Schultz's volatility risked exposing interconnected operations to intensified IRS and Justice Department scrutiny.^[33] Schultz's defiance, including public rants against the decision during the meeting, positioned him as a disruptive force in the anarchic criminal economy, where self-enforcing truces had emerged to minimize violent turf wars and maximize illicit revenues.^[5] The Syndicate concluded that eliminating Schultz preemptively preserved organizational integrity, authorizing his contract to avert the chain reaction of investigations his actions might trigger across multiple cities.^[3] This calculus reflected a shift toward centralized dispute resolution, testing the Syndicate's authority just months after the 1934 repeal of Prohibition had forced adaptation to new revenue streams.^[32]

The Newark Shooting

On October 23, 1935, around 10:30 p.m., Charles "The Bug" Workman and Emanuel "Mendy" Weiss, enforcers linked to the organized crime syndicate's execution arm later known as Murder, Inc., ambushed Dutch Schultz at the Palace Chop House on East Park Street in Newark, New Jersey.^[5]^[6] The gunmen entered the establishment boldly, one proceeding directly to the rear dining area while the other targeted the restroom, exploiting Schultz's brief separation from his group during a routine meal.^[6] Schultz, who maintained a heavily protected routine with bodyguards and frequent shifts in operations—such as relocating his base to Newark amid legal pressures—proved vulnerable in this unremarkable stopover.^[34] Workman trailed him into the restroom and fired at close range, striking Schultz once in the abdomen with a .45-caliber round that coursed downward through his stomach and liver as he stood at the urinal.^[5]^[6] Eyewitness accounts from staff, including waiter Benjamin Bergenfeld, described the assailants in dark overcoats and low-pulled hats advancing confidently, with gunfire erupting in rapid bursts resembling machine-gun fire or shotgun blasts.^[6] At the table, Weiss simultaneously opened fire, killing accountant Otto Berman with multiple shots to the chest, arm, cheek, and abdomen, while wounding lieutenant Abe Landau—severing his carotid artery—and bodyguard Bernard "Lulu" Rosenkrantz with six hits to the face, neck, torso, and hands.^[5]^[6] The victims' companions returned fire with handguns, shattering a cigarette machine and embedding bullets in walls and a neighboring window, but failed to strike the attackers, who escaped in a black sedan driven by an accomplice.^[6] Two .45-caliber pistols were later recovered at the scene, supporting ballistic evidence of the close-quarters execution.^[6] Schultz staggered from the restroom amid the pandemonium, collapsing near the table as Newark police, alerted by the commotion, arrived within minutes under Captain Thomas Rowe.^[6] The wounded were rushed to Newark City Hospital for emergency surgery, with forensic examination confirming the precision of the hits despite the brief exchange—highlighting the hitmen's tactical coordination in bypassing outer security and capitalizing on Schultz's isolated moment.^[5]^[6]

Deathbed Ramblings and Immediate Aftermath

Schultz was shot multiple times on October 23, 1935, at the Palace Chop House in Newark, New Jersey, sustaining wounds to the stomach, spleen, colon, and shoulder from .32- and .45-caliber bullets.^[2]^[5] He was rushed to Newark City Hospital, where he lingered in critical condition for approximately 22 hours before succumbing to peritonitis and hemorrhage on October 24, 1935, at around 8:30 p.m.^[2]^[35] Medical examination confirmed the gunshot trauma as the direct cause, exacerbated by infection from perforated organs, with no evidence of prior poisoning or other factors.^[2] During his final hours, Schultz was administered morphine for pain, inducing a state of delirium documented by Newark police stenographer F.J. Lang, who transcribed over 2,000 words of his utterances from bedside interrogations starting around 4 a.m. on October 24.^[35]^[36] The statements were largely incoherent, featuring disjointed phrases such as "Oh, oh, dog biscuits and when he is happy he doesn't get happy please, please to do this," "The glove will fit you to a T," and fragmented references to lawyers, money, and unnamed adversaries, reflecting opioid-fueled confusion rather than deliberate codes or revelations.^[37]^[35] When pressed by detectives on his assailants, Schultz responded evasively with lines like "Don't let Satan draw you too fast" and avoided naming suspects, yielding no actionable intelligence amid his evident disorientation from blood loss and narcotics.^[38] Subsequent analyses of the transcripts, including literary interpretations, have treated them as nonsensical artifacts of terminal agony, debunking claims of embedded ciphers or prophecies as unsubstantiated speculation.^[39]^[36] In the immediate aftermath, Schultz's death created a brief power vacuum in his Bronx-based rackets, but his organization fragmented without igniting widespread gang warfare, as territories in numbers gambling and extortion were swiftly absorbed by rivals including Lucky Luciano's network and associates like Joey Adonis.^[5] Police investigations stalled due to lack of witnesses and Schultz's uninformative ramblings, with no arrests tied directly to the hit until decades later, when confessions from Murder, Inc. members confirmed the Commission's role in sanctioning it to avert Schultz's planned assassination of prosecutor Thomas Dewey.^[2]^[5] This orderly transition underscored the stabilizing effect of the nascent Mafia Commission, preventing the retaliatory cycles seen in prior underworld feuds.^[5]

Enduring Legacy

Structural Impact on Mafia Organization

Dutch Schultz's participation in the 1931 Atlantic City Conference marked a pivotal transition from the fragmented, violent gang rivalries of the Prohibition era to a more centralized framework for organized crime. The conference, attended by figures including Schultz alongside Italian and Jewish mob leaders, laid groundwork for the National Crime Syndicate, emphasizing profit-sharing and dispute resolution to minimize destructive wars like the ongoing Schultz-Coll feud, which had claimed over 40 lives by 1931. This structure aimed to supplant the chaotic territorial battles fueled by bootlegging scarcities, where gangs vied for control without overarching mediation, resulting in homicide rates in major cities spiking to record levels during the 1920s.^[40]^[19] Schultz's subsequent defiance of the Syndicate's Commission exemplified the perils of non-cooperation within this emerging hierarchy. In 1935, facing tax evasion charges pursued by Special Prosecutor Thomas E. Dewey, Schultz proposed assassinating Dewey—a plan the Commission rejected unanimously, citing the risk of severe federal retaliation that could dismantle the entire network. Schultz's insistence on proceeding independently prompted the Commission to authorize his elimination on October 23, 1935, in Newark, New Jersey, reinforcing centralized authority and deterring other operators from unilateral actions that threatened collective stability. Pre-assassination, independent bosses like Schultz operated with relative autonomy, perpetuating localized violence; post-assassination, the Commission's enforcement power contributed to a decline in open inter-gang conflicts, as evidenced by reduced bootleg wars after Prohibition's repeal and the Syndicate's mediation protocols.^[3]^[19] Economically, Schultz's dominance of the numbers racket in Harlem and the Bronx post-1933 repeal demonstrated the persistence of underground economies amid inelastic demand for prohibited vices. Having muscled into Harlem's gambling operations—previously run by Black bankers like Stephanie St. Clair—Schultz's network extracted an estimated 50% house edge on wagers, generating millions annually from a low-barrier game drawing daily participation from working-class bettors with stakes as small as a penny. This shift from alcohol to gambling underscored how repeal redirected but did not eradicate black markets, as bans on lotteries and vice created artificial scarcities incentivizing organized control. Violence associated with Schultz's operations, including extortion and turf enforcement, arose not inherently from participants but as a rational response to state-imposed prohibitions that precluded legal arbitration, amplifying disputes over high-margin territories.^[41]^[42]^[43]

Cultural Portrayals and Myths

Early 1930s tabloids frequently sensationalized Dutch Schultz's criminal activities, depicting him as a prototypical Prohibition-era gangster through lurid accounts of bootlegging wars, extortion rackets, and violent enforcements, often prioritizing dramatic headlines over precise details of his calculated operations in beer distribution and policy gambling.^[44] These portrayals amplified his notoriety, with Schultz himself selecting his alias for its brevity in newsprint, reflecting an awareness of how media amplification shaped public perception of mob figures.^[45] Such coverage, while rooted in verifiable events like the 1931 Dewey investigations into his Bronx enterprises, embellished Schultz's persona as impulsively brutal, overshadowing evidence of his strategic alliances and financial acumen derived from first-hand law enforcement records.^[11] Literary treatments have further mythologized Schultz, particularly William S. Burroughs' 1970 screenplay The Last Words of Dutch Schultz, which transforms transcriptions of his 1935 deathbed delirium—ramblings recorded by police stenographers—into a surreal, fictional narrative blending gangster biography with experimental collage techniques.^[46] Burroughs' work, inspired by the transcribed mutterings published in contemporary newspapers, exaggerates the chaotic poetry of Schultz's final hours for artistic effect, diverging from empirical accounts that attribute the incoherence to morphine-induced hallucinations rather than prophetic insight.^[39] This approach exemplifies how post-war literature often reframes historical criminals through modernist lenses, prioritizing thematic ambiguity over causal analysis of Schultz's downfall via mob commission decisions. In film, Schultz appears as a secondary antagonist in Francis Ford Coppola's The Cotton Club (1984), where actor James Remar embodies him as a ruthless Harlem numbers racket operator whose volatility precipitates mob retribution, aligning with documented tensions over policy control but amplifying interpersonal drama at the expense of broader syndicate dynamics.^[47] Similar dramatizations occur in Hoodlum (1997), with Tim Roth portraying Schultz in conflict with Harlem gangster Bumpy Johnson during the 1930s, emphasizing territorial gunplay while condensing complex economic rivalries into cinematic confrontations.^[48] Television references, such as mentions in Boardwalk Empire (2010–2014), allude to Schultz's real-life rivalries with figures like Lucky Luciano without full character development, underscoring a pattern where media favors anti-heroic charisma—Ruthless yet cunning—over unvarnished records of his paranoia and failed assassination plots against prosecutors, a bias evident in Hollywood's recurrent gangster romanticism that substitutes narrative appeal for rigorous historical fidelity.^[49] These depictions collectively sanitize Schultz's documented thuggery, such as the 1935 Newark hit stemming from his overt threats, in favor of mythologized individualism, reflecting entertainment industry's causal distortion toward viewer engagement rather than empirical truth.^[3]

The Hidden Treasure Legend

The legend of Dutch Schultz's hidden treasure emerged amid his 1935 federal tax evasion trials, during which he reportedly feared government seizure of his illicit earnings from bootlegging, extortion, and the numbers racket.^[22] Associates claimed Schultz instructed his bodyguard, Bernard "Lulu" Rosenkrantz, and others to bury a steel strongbox or safe containing $5 to $7 million in cash, gold coins, diamonds, jewels, and bonds—equivalent to over $100 million in contemporary value—near Phoenicia in the Catskill Mountains of upstate New York.^[50] These accounts, drawn from posthumous testimonies by surviving gang members, posited the burial occurred in late 1934 or early 1935 to safeguard assets before potential incarceration, with Schultz allegedly retaining knowledge of the precise location.^[9] Schultz's deathbed mutterings on October 24, 1935, following his assassination in Newark, further amplified the rumor, as he deliriously referenced "the safe" and hidden valuables, though these ramblings lacked coherent directions and were recorded by police stenographers without yielding actionable leads.^[51] Treasure seekers, including locals and professional hunters, produced purported maps and conducted digs in the Phoenicia area throughout the decades, with efforts persisting into the 2020s using metal detectors and ground-penetrating radar.^[52] Law enforcement, including post-mortem searches of Schultz's properties and associates' premises, recovered no such hoard; inventories of his estate revealed only modest liquid assets, with much of his wealth tied to operational cash flows from ongoing rackets rather than static burials.^[53] Despite extensive explorations—spanning over 85 years and involving state police, amateur groups, and even televised expeditions—no verified cache has surfaced, undermining the legend's empirical foundation.^[22] Historical analysis indicates the tale likely exaggerates dispersed or seized legitimate holdings, as Schultz's enterprises demanded continual liquidity for bribes, payroll, and expansions, rendering improbable the hoarding of millions in untraceable form amid federal scrutiny.^[50] The myth's persistence reflects a psychological draw akin to historical treasure frenzies, where unverified anecdotes sustain hope of effortless windfalls, yet causal scrutiny of Schultz's documented finances reveals no unexplained shortfall justifying a massive hidden reserve.^[54]

References

[1]
Mobster Dutch Schultz is born | August 6, 1902 - History.com
Arthur Flegenheimer, who will go on to become one of New York's most feared criminals under the name “Dutch Schultz,” is born in the Bronx.
[2]
Dutch Schultz - Last Words, Treasure & Death - Biography
Apr 2, 2014 · Dutch Schultz was born Arthur Flegenheimer on August 6, 1902, in the Bronx section of New York City. During his relatively brief life, Schultz ...
[3]
Brick from the Palace Chop House | Federal Bureau of Investigation
Schultz continued to build his enterprise, adding illegal gambling and tax evasion to his criminal resume. In 1933, he was indicted on a tax charges and spent ...Missing: activities | Show results with:activities
[4]
Harlem Policy Rackets — Dutch Schultz: Beer Baron of the Bronx
There seems to be several versions of Schultzs involvement in the Harlem policy rackets, or numbers as it was often called. Much of the information came ...
[5]
'Beer Baron' Dutch Schultz gunned down 90 years ago
Oct 13, 2025 · Schultz was killed by a .45-caliber bullet, but his associates were shot with .38s. The hitmen reportedly used .38s and possibly a sawed-off ...
[6]
SCHULTZ IS SHOT, ONE AIDE KILLED AND 3 WOUNDED
LINK TO BROOKLYN KILLING Witnesses in Broadway Shooting Pick Picture of Stern, Man Sought in Amberg Death. SCHULTZ IS SHOT, ONE AIDE KILLED. Share full ...
[7]
Dutch Schultz (1901-1935) - Find a Grave Memorial
Original Name: Arthur Simon Flegenheimer ; Birth: 6 Aug 1901. Bronx, Bronx County, New York, USA ; Death: 24 Oct 1935 (aged 34). Newark, Essex County, New Jersey, ...<|separator|>
[8]
Dutch Schultz - The Beer Baron of the Bronx - Biographics
May 21, 2025 · Dutch Schultz was born Arthur Simon Flegenheimer on August 6, 1902, in the Bronx, to a couple of German Jewish immigrants named Herman and Emma Flegenheimer.
[9]
Mobster Dutch Schultz & His Hidden Treasure - Legends of America
He was born Arthur Simon Flegenheimer on August 6, 1901, in the Bronx borough of New York City to German Jewish immigrants Herman and Emma Neu Flegenheimer.Missing: childhood | Show results with:childhood
[10]
Dutch Schultz (born Arthur Simon Flegenheimer; 1901 – 1935) was ...
Aug 10, 2019 · Dutch Schultz (born Arthur Simon Flegenheimer; 1901 – 1935) was a New York City-area German-Jewish-American mobster of the 1920s and 1930s ...
[11]
Dutch Schultz | Research Starters - EBSCO
Dutch Schultz, born Arthur Flegenheimer, was a notorious American gangster who rose to prominence during the Prohibition era in the early 20th century.
[12]
Dutch Schultz - Mr. Arthur Flegenheimer - CooperToons
Arthur Simon Flegenheimer was born on August 6, either in 1901 or 1902 depending on your source. The date 1902 seems to be what most people cite. However, 1901 ...
[13]
Born on August 6, 1901, was American mobster & crime ... - Facebook
Aug 9, 2025 · Born on August 6, 1901, was American mobster & crime leader, Dutch Schultz. Dutch dropped out of school in the 8th grade to help support himself ...Missing: petty | Show results with:petty
[14]
Dutch Schultz, The Fearsome Mobster Of Prohibition-Era New York
Aug 18, 2024 · Murder Inc. hitmen tracked Schultz to the Palace Chop House in Newark, New Jersey, on Oct. 23, 1935, and shot him in the restaurant's bathroom.
[15]
SCHULTZ REIGNED ON DISCREET LINES; Never a Strong-Arm ...
At that time he gave his name as Charles Harman and was sent to Blackwell's Island on an indeterminate sentence. It was the only time he was ever sent to jail ...
[16]
https://www.britannica.com/biography/Dutch-Schultz
[17]
Dutch Schultz and The American Dream - Criminal Element
Nov 20, 2013 · Schultz was subsequently sentenced to one year in Blackwell's Island Prison (which is now Roosevelt Island). Upon his release, he went to work ...
[18]
Dutch Schultz - Gangster - J-Grit.com
He served 17 months, which despite his lengthy criminal career, was to be his only prison sentence. Upon his release he was given his nickname by friends who ...
[19]
Prohibition Profits Transformed the Mob
Prohibition practically created organized crime in America. It provided members of small-time street gangs with the greatest opportunity ever.Missing: scale | Show results with:scale
[20]
Stephanie St. Clair, Harlem's 'Numbers Queen,' Dominated the ...
May 21, 2021 · When the Great Depression set in, Schultz set his sights on Harlem's numbers game. He gave Black and Latino policy operators two options: ...
[21]
[PDF] GAMBLiNG IN PERSPECTIVE - Office of Justice Programs
Corruption, \vhich when related to illegal gambling, involves the passing of money or some other fo~m of bribe to a police officer, politician, or other public ...
[22]
Searching for a mobster Dutch Schult's millions in the Catskills
Jul 20, 2021 · Let's rewind. Schultz was born Arthur Flegenheimer in the Bronx in 1901 to German-Jewish immigrant parents and soon ran with the Bronx's Frog ...Missing: origin heritage
[23]
Legs Diamond: A History of Kingston's Most Notorious Gangster
Oct 22, 2021 · Legs Diamond, the rival of infamous bootlegger Dutch Schultz, rose to notoriety, made enemies, and met his end in the Hudson Valley.
[24]
Vincent 'Mad Dog' Coll: The Irish immigrant turned NYC gangster
Apr 19, 2024 · On July 28, 1931, Coll attempted to kidnap Joey Rao, a major Schultz lieutenant. The attempt failed and in the ongoing gun battle on a public ...
[25]
The Death of Mad Dog Coll: 312 West 23rd Street | Infamous New York
Nov 2, 2014 · Accused of murdering a fifteen-year-old boy during a drive by shooting, Vincent “Mad Dog” Coll (far right) and his mob yucked it up with reporters during the ...Missing: enforcers | Show results with:enforcers
[26]
The Official Web Site of Mad Dog Coll/War with Dutch Schultz
Coll and his gang continued their assault on Schultz's operation by raiding one of his Bronx warehouses and demolishing a number of his trucks used to ...
[27]
HUNT DUTCH SCHULTZ FOR TAX ON MILLIONS; Federal Officials ...
"Schultz," Mr. Medalie said, evaded the income-tax law by concealing profits from his beer racket for years other than 1929. He concealed these profits by ...Missing: details | Show results with:details
[28]
1935: While facing tax evasion charges, NYC beer baron and ...
Jul 31, 2021 · Schultz was charged with not filing tax returns on illegally earned income during 1929, 1930, and 1931, his heyday before the repeal of ...Missing: details | Show results with:details
[29]
SCHULTZ IS FREED; JUDGE EXCORIATES JURY OF FARMERS
Schultz acquitted after jury had been out 28 hrs; Judge scores jury; Schultz's counsel asserts all Fed and State taxes will be paid; still faces conspiracy ...
[30]
The Search for the Lost Treasure of Dutch Schultz | Visit Malone
Jun 29, 2015 · Dutch Schultz was acquitted on August 1, 1935. The courtroom, and the crowds outside, cheered and applauded. Presiding Judge Bryant, a native of ...<|separator|>
[31]
Thomas E. Dewey Defeats Dutch Schultz - HistoryNet
Jun 12, 2006 · Schultz's criminal activities eventually led to a federal indictment for tax evasion. The Dutchman managed to beat the rap in 1935, but New ...
[32]
What was The Commission? - National Crime Syndicate
The first real test for The Commission came in 1935 when Dutch Schultz ... Thank you for keeping it dialed to the National Crime Syndicate. I have ...
[33]
[PDF] Transformation Of The American Mafia, 1880-1960 - eGrove
Apr 25, 2015 · ... Bonanno and Sergio Lalli, A Man of Honor: The Autobiography of Joseph ... The ACN Commission universally voted against Schultz's ...<|separator|>
[34]
The murder of bootlegger Dutch Schultz - New Jersey 101.5
Oct 23, 2020 · Schultz was known as a ruthless bootlegger who transitioned into numbers, extortion, and other rackets after the end of Prohibition. In one of ...
[35]
Transcript of Death Bed Statements Made by Schultz
Statements made by Arthur (Dutch Schultz) Flegenheimer were taken down by a Newark police stenographer, FJ Lang.
[36]
The Last Words of Dutch Schultz - The Atlantic
Abe Landau pushes himself up and staggers out in pursuit of the gunman, pulling himself along the bar. He makes the door just as a black car pulls away. He ...
[37]
The Last Words of Dutch Schultz - Fourmilab
Oh, oh, dog biscuits and when he is happy he doesn't get happy please, please to do this. Then Henry, Henry, Frankie you didn't even meet me. The glove will fit ...
[38]
The Last Words of Dutch Schultz and His Hidden Treasure
Jun 16, 2015 · Schultz in known to have said, 'Don't let Satan draw you too fast.' He said this after being asked 'who shot you?' Other Gang leaders knew ...
[39]
The Strange Poetry of a Notorious Gangster's Last Words
Oct 8, 2020 · In 1935, Dutch Schultz ... In his morphine delirium Schultz babbled nonsense threats to his enemies and incoherent entreaties to his friends.
[40]
Timeline — Dutch Schultz: Beer Baron of the Bronx - Crime Library
Schultz attends Atlantic City Conference. April 1931 - Feb. 1932. The Coll / Schultz War. May 31, 1931. Peter Coll is murdered by Schultz gunmen. June 18, 1931.
[41]
How Stephanie St. Clair Built a Gambling Empire in 1920s Harlem
May 9, 2022 · Instead, she made her fortune in the underground economy of the numbers racket. Fearlessly facing down corrupt cops and violent mobsters alike, ...
[42]
The Repeal of Prohibition
By 1929, after nine years of Prohibition, many Americans were discouraged. · In Chicago, on February 14, 1929, cohorts of infamous racketeer Al Capone lined up ...Missing: rackets Schultz<|separator|>
[43]
Prohibitions create black markets and cause violent crime
Aug 10, 2016 · The transport and sale of illicit booze became a prolific criminal enterprise backed by well-armed, violent gangs. The result: a homicide rate ...
[44]
https://www.poststar.com/dutch-schultz-newspaper-clippings/collection_e1c142b1-2f19-570b-b3d7-47220556d5c8.html
[45]
Dutch Schultz - Mafia Stories
Schultz actually was an avid newspaper reader. He allowed he had taken the name of Dutch Schultz because "it was short enough to fit in the headlines. If I'd ...Missing: 1930s sensationalism
[46]
The Last Words of Dutch Schultz - RealityStudio
A fiction written in the form of a screenplay, this work was inspired by Burroughs' interest in reputed mobster Schultz.
[47]
Forgotten Hollywood: The Back Story of the Making of "The Cotton ...
Feb 28, 2023 · In the film, Gere plays a trumpet player, Dixie Dwyer, who saves the life of a Jewish gangster, Dutch Schultz (James Remar), and is put on his ...
[48]
Hoodlum
Aug 30, 1997 · Hoodlum, directed by Bill Duke, tells the story of Ellsworth “Bumpy” Johnson, a black gangster who did battle with mobster Dutch Schultz in the 1930s.
[49]
21 Real-Life Gangsters on Boardwalk Empire | Den of Geek
Oct 26, 2014 · The Brain also had an eye for talent, as well as seeing the potential in Luciano and Lansky, he used Jack “Legs” Diamond and Dutch Schultz on ...
[50]
Bootlegger's Bounty: The Hidden Treasure of Gangster Dutch Schultz
May 16, 2024 · As with bootlegging, certain territories in New York belonged to him and partner Joey Noe, and any encroaching was dealt with swiftly: One ...
[51]
Gangster's Gold | About the Episode | Secrets of the Dead - PBS
It is widely believed that notorious Bronx-based gangster and bootlegger Dutch Schultz buried a fortune estimated to be worth more than $50 million somewhere ...Missing: bodyguard testimony
[52]
Searching for gangster Dutch Schultz's gold - New York Post
Nov 14, 2020 · Yes, legend has it that the Catskills town of Phoenicia conceals a trove of money, bonds and jewels that once belonged to a New York City bootlegger named ...Missing: facts | Show results with:facts
[53]
Search for Gangster's Treasure Finds More Tin Than Gold
Aug 21, 2005 · Rumors persist that Dutch Schultz buried millions in the Catskill Mountains. In 70 years, nothing has been found, but the hunt goes on.Missing: FBI results
[54]
Loot | The New Yorker
Nov 12, 2001 · The gangster Dutch Schultz, fearing a long prison term (which he didn't get) or assassination (which he did, in 1935), loaded his ill-gotten millions into a ...