This should have led the Bureau of Internal Revenue to take a closer look at Mickey’s finances, as it had done nearly two decades earlier in the case of Al Capone. Yet remarkably, as Warren Olney noted in the final report of the Special Crime Study Commission—a report that came out the same month that Senator Kefauver was interrogating Mickey Cohen in Los Angeles—“there has never been a racketeer, hoodlum, or gangster of first rank importance convicted of income tax fraud in California.” Nor, according to comments made by Treasury Department officials at a conference on organized crime in the spring of 1949, were any such cases in the works. Local Bureau of Internal Revenue agents had actually tried to start an investigation several years earlier. But after their superiors discovered the probe, they’d been detailed to other assignments.
The Kefauver Committee had no intention of letting Mickey off so lightly. During their questioning, committee members homed in on Mickey’s massive expenditures and minimal income. Grudgingly, Cohen admitted to a $40,000 home (far less than its actual value) with $48,000 worth of home furnishings. That still left a gap of $210,000 in unaccounted-for income. When pressed about the discrepancy by chief counsel Rudolph Halley, Cohen replied that over the past four years, he had borrowed about $300,000, most of which, he added, had been spent on lawyers’ fees as a result of the constant “harassment from the LAPD.”
Halley asked if there were any notes or collateral that could document these loans.
Mickey said there were not. People had lent him money, Cohen continued, because “they just happen to like me.”
“How do you maintain that kind of credit?” Sen. Charles Tobey of New Hampshire asked.
Mickey cracked his first smile. “It’s getting very weak, Senator.”
The audience chuckled. By the end of the week, the investigators were gone. When a reporter asked Cohen what he thought of the experience, Mickey cracked, “All them congressional committees are a joke, a gimmick for the furtherance of a politician.” Bill Parker worried him much more.
DURING PARKER’S first month on the job, four different emissaries approached him with variations on a single proposal: appointing a gambling “czar.” Ostensibly, this person’s job would be to curb gambling, but Parker felt his interlocutors were actually more interested in organizing it. Fearing a frame-up, Parker spoke openly about these overtures at a countywide meeting of law enforcement officers later that month. He was convinced that the various attempts to snuff out Mickey Cohen suggested that the Syndicate was preparing to move into Los Angeles in force. Los Angeles, which Parker described, in language harkening back to the 1920s, as “the last white spot among the great cities of America,” risked becoming Chicago. The LAPD was determined to resist this, he told his audiences. But he warned, “I do not know how long this can be continued. There are men here ready to get their tentacles into the city and drain off large sums of money through gambling activities of various kinds.”
Parker argued that if the forces of law and order were to prevail, a counteroffensive was needed. For too long, gangsters had taken advantage of the fact that when things got “hot” in one of Los Angeles County’s forty-five-odd municipalities, they could just move to another. At a meeting of regional law enforcement officials, Parker proposed a new approach—a central intelligence bureau that pooled resources from all of the region’s law enforcement agencies and pursued gangsters wherever they attempted to hide. Representatives from the three dozen law enforcement agencies present readily agreed to participate in such an effort. But Parker’s ambitions were larger still.
“This plan goes deeper than a means of saving Los Angeles from the stigma of vice,” Parker continued. “We are protecting the American philosophy of life. It is now clear that Russia is hoping we will destroy ourselves as a nation through our own avarice, greed, and corruption in government. Hence, this program has a wider application than in the Los Angeles area alone.” Parker envisioned a national consortium of departments committed to information-sharing.
The assembled group was, according to one account of the meeting, “startled,” both by the scope of Parker’s ambitions and by his tone. In his first speeches as chief-of-police-elect, Parker had struck a hopeful—even humble—note, committing himself and his officers to the “reasonable enforcement of the law and respect for the rights and dignity of the individual—to work for the community, not rule it.” But already another side of Chief Parker was appearing—the profoundly pessimistic observer of American decline, the Spengler of City Hall.