Today, the kind of partnership Torrio and Walton struck with Capone and Walker is known as profit sharing.
Walton took on more and more partners, and eventually called his stores Walton’s Family Center, and then just Walmart.
Sam Walton seems to have walked the straight and narrow, but in 2003, federal agents raided Walmart stores in twenty-one states and slapped them with a “racketeering” indictment, in which they were charged with violating U.S. labor laws.
James Linsey of Cohen, Weiss and Simon, a law firm representing the workers of Walmart, had this to say, “The essence of racketeering is layering so that you insulate the people at the top, whether it’s Vito Corleone or Tony Soprano or, in this case, the top management of Walmart.”
As noted earlier, we’re all made of the same stuff.
LESSON 78
They Can Take It in the Ass on My Dance Floor: Don’t Let Opinions Stand in the Way of Profit
THE Mafia bans gays from membership. As far as I know, they’re not about to implement the “Don’t Ask, Don’t Tell” policy. However, the Mob will deal with anyone, without prejudice.
Some friends and I took over a nightclub in Manhattan. The former club owners catered to homosexuals one night a week. Before handing us the keys, they explained to us that gays were their best clientele.
“They’re big spenders, and never cause any problems,” said one owner. “I never have to worry about them wrecking the joint, and they don’t sneak weapons in.”
“They’re our classiest clients,” his partner added. “But I wouldn’t care if they took it in the ass on my dance floor ’cause their cash is good.”
As noted earlier in this book, the Mafia expects its members to adopt the values of the organization, and those who flout these values are dealt with swiftly and severely. That said, the Mafia does not question the values of others they do business with. Profit is the bottom line.
For a time, the Bonanno family allowed drugs while the other New York families did not. Still, all five families did business together. In contrast, U.S. businesspeople are often excluded from doing business in ripe markets because of political differences derived from conflicting values.
Well, who the fuck are we?
The logic of criminal business, of the bosses, coincides with the most aggressive neoliberalism. The rules, dictated or imposed, are those of business, profit, and victory over all the competition. Anything else is worthless. Anything else doesn’t exist.
—Roberto Saviano, Gomorrah
Imagine a meeting where two Mafia bosses discuss millions of dollars, enough to enhance the riches of both families. The meeting goes well and a deal is hammered out. The two bosses shake hands and kiss. They walk outside to the parking lot where one don drives away in a big old ’73 Caddy gas guzzler with a broken muffler, leaving a cloud of smoke behind. The other don, speaking through a cough, announces to his men that he’s canceling the deal. His reason: the don in the Caddy is polluting the world.
The next thing to pollute that parking lot would be gun smoke; the don who canceled the deal would be dead.
It’s naive to think that your values should be universal.
If you want to fix the world, and plan to shun everyone who doesn’t agree with your ideas of right and wrong, you’re cutting off your nose to spite your face. If you lose a little sleep over some of the characters you deal with, donate some of your profits toward bettering the world.
If the Mafia had imposed economic sanctions on countries like Cuba, India, South Africa, Iran, and Iraq, then the infamous Pizza Connection, in which the Mafia dominated the global drug trade, would never have connected.
It’s important to stay connected with our world. Teach people by example.
In ancient times, a Greek historian named Herodotus traveled the known world recording stories for his book, The Histories.
Back then, most nations were run like Mafia fiefdoms, ruled by dictators who make today’s Mob bosses look like Tinker Bells. Persia, or modernday Iran, was one such nation.
In The Histories, Herodotus writes of a Persian king named Darius who ruled over various ethnic groups within his kingdom. One day, “Don” Darius called on a bunch of Greeks within his realm and said to them, “I know youse cremate your parents when they die, but how much would I have to pay youse to eat them instead?”
The Greeks took offense and told Darius, in so many words, to go fuck himself.
Darius then called on a bunch of Indians within his realm and said to them, “I know youse eat your parents when they die, but how much would I have to pay youse to cremate them instead?”
The Indians were appalled and answered Darius in the same manner as the Greeks.
Based on Darius’s inquiry, Herodotus concluded that societies have different customs and therefore reasoned that right and wrong are subjective.
LESSON 79
Choosing Your Consigliere
IN the early days of the American Mafia, a consigliere, or counselor of a family, was an older man chosen for his experience, wisdom, and street smarts. He was well respected and counted upon to remain objective in all of his decisions. A skilled diplomat, he could defuse potential problems and advise the boss on how to steer the family around obstacles.
Over time, however, this revered position became a political one, and the consigliere amounted to the number-three man in the family in terms of wealth and power.
Sammy “The Bull” Gravano, before being elevated to the position of underboss, was appointed consigliere of the Gambino family at the tender age of forty. Gravano held court over men twice his age and ten times as smart. The older wiseguys listened to his decisions, not on account of any accrued wisdom, but because he’d kill them if they didn’t. The Mob neglected to honor the true purpose of this position, and paid a heavy price.
In business, you need a good consigliere, someone you trust to give sound advice. That someone should be rooting for your success, but detached from your business and therefore able to see things clearly. A spouse, a sibling, a mentor—pick a person who can be trusted, and you’ll have a great source to turn to for advice.
LESSON 80
Why Frankie Fever Don’t Believe the Hype
A capo named Frankie Fever once told me a story about his early years on the street. He was a teenager, sitting in a pizzeria eating a slice, when two guys walked in and sat down at a table behind him. One guy said to the other, “I got five grand together, can you give it to me for five?”
The other guy said, “No way, you can flip this shit for twelve anywhere. I gotta get six.”
“I can’t do it,” said the first guy. “Five is all I got. Can you give it to me on the arm? I’ll square up with you after I sell it.”
“No way,” said the second guy.
“I’ll see what I can do.” The first guy got up and walked out of the pizzeria.
Frankie turned around in his seat to face the guy still sitting there and said, “Whatchu got?”
“Ten pounds of skunk weed. It goes for twelve grand. You interested?”
“You lookin’ for six?” asked Frankie.
“Yeah.”
Frankie knew that skunk was marijuana, but knew little else about the drug trade. He did know if he got six grand together, he could double his money on the street.
“I’ll be back in twenty minutes,” said Frankie. “Hold it for me.”
“Hurry up. If my friend comes back with the cash, I gotta let it go.”
Frankie had two grand of his own. He ran down the block to his future father-in-law’s house and asked to borrow the other four, promising him five in return. Frankie then ran back to the pizzeria and made the buy.
Ten minutes later, Frankie was sitting at home wondering what to do with ten pounds of compressed oregano. He’d been duped. He never saw the guys again.
Frankie told me he learned two major lessons that day. Never jump at anything—as we’ve already covered in “Fireproof Your Ass”—and don’t
buy something just because someone else wants it.
As crazy as it may sound, this is how Hollywood and the publishing industry works. A book or screenplay can float around forever, but if one or more people suddenly want it, there’s a buzz and everyone starts to bid, pumping up the price.
Major publishers and film studios write off losing propositions. You, however, should never bid on or buy something just because someone else wants it.
LESSON 81
I Got an Inside Guy: Staying Up on the Competition
MY fence once told me, “If a company has five hundred employees, half are ripe for an inside tip.”
Imagine going into a conference room and knowing exactly what the other party wants or needs to get out of the negotiations—their rock-bottom price, the most they’ll give, the least they’ll take. That info can all be provided to you over a beer at Patrick’s Pub.
When pulling off heists, my biggest tips came from ordinary employees, an inside guy or gal privy to golden information.
Every company has its share of people willing to talk. I can’t count how many times I sat in a diner booth whispering with an inside guy as he arranged table napkins as buildings, coffee mugs as trucks, and forks as people.
Sure, a lot of these tipsters were backed up on their bills, behind on the rent, or drowning in credit card debt. But sometimes, my inside guy didn’t even want a cut from the take; he just wanted to talk over a drink.
People are lonely and many are unhappy with the company they work for. Beer, wine, or a cocktail will loosen people’s screws, but most people will talk if you’re just willing to listen.
LESSON 82
Hide Your Money Under the Mattress: Stay Cash Heavy
I knew a fence named Freddie. Besides moving stolen goods, Freddie was involved in a million other scams. If Freddie got jammed up on the street and owed some coin, he’d hem and haw until the other guy called for a sit-down.
At the sit, Freddie would admit to the debt but claim he was broke. As a gesture of good faith, he’d offer to pay even more than he owed, but in merchandise, of which he had plenty lying around. In this way, Freddie didn’t make many friends, but he stayed cash heavy and unloaded goods he wanted to sell anyhow.
A company should avoid Freddie’s habit of alienating people but adopt his strategy of holding on to cash.
The capricious way of the streets has ingrained in mobsters the hard truth that today’s income, however secure it may seem, can be cut off tomorrow. The Mob offers no pension, severance package, or 401(k). It’s all about how much cash you can stash, which is not such a bad goal for anybody, as we have seen in recent economic times.
Most of a mobster’s criminal affairs are cash transactions, so staying cash heavy is deeply rooted in his behavior. When a mobster goes into business, he brings his cash-heavy mind-set with him. Thrust into an office, he finds himself juggling phone calls, customers, credit cards, insurance policies, stocks, bonds, bank accounts, and payroll. But he never forgets, as so many businesspeople do, that cash flow must remain his primary concern at all times.
Big companies need massive credit to survive in the corporate jungle, but keep a heavy cash reserve behind your outstanding debt. During the latest economic crunch, companies with huge cash reserves survived. So did the Mafia—without bailout money.
LESSON 83
Poverty Sucks. Or Does It?
IN the Mob, when shit hits the fan, you’re in the wind.
While on the run, it’s not the chase that bothers you—that’s exciting. It’s being out of touch with loved ones. Even if I was staying at a five-star hotel, I’d get tired of living out of a suitcase, and long for a home-cooked meal. But that’s The Life. You tough it out, or it breaks you.
While on the lam with other mobsters, I could see who was built for hardships and who wasn’t, who could survive a stint in jail and who’d probably fold under pressure.
You don’t have to experience life on the lam or serve a prison sentence to prepare yourself for a tough spell that’s bound to happen now and then. You just have to remember where you came from. If you become a big shot and forget your roots, your background is useless.
On the other hand, a leader who never forgets what it’s like to have little or nothing can survive any hardship.
He will always be a slave who does not know how to live upon a little.
—Horace
Sicilian Mob boss Bernardo Provenzano never forgot his peasant background. When fate allowed, Provenzano lived in a mansion by the sea, wore the finest clothes, and drove the fastest cars. However, when the need arose, Provenzano traded in his fancy clothes for a farmer’s outfit, and his resort-style digs for a dive in the boonies. He’d recall his ragged roots, the memory of which enabled him to tough it out while maintaining control of his men and, more important, himself.
When the law finally pinched Provenzano, the shabby cottage he was living in stank of stale cheese and rotten vegetables.
Mob boss Frank Costello slept inside a vat on his way to America. Carlo Gambino braved the choppy transatlantic crossing as a stowaway. Both men never forgot their roots.
If you’re reading this book, chances are you come from humble origins. Never forget it!
The most successful CEOs do often have a certain make-up—often they come from adversity, having had a difficult background in some way that has helped to create the DNA of a super-CEO.
—Steve Tappin, author of The Secrets of CEOs
A leader willing to face problems head-on, take a salary cut, and sacrifice personal time and energy is a leader worth following.
Poverty doesn’t always suck. If you remember what it was like, that memory will carry you through even the hardest times.
LESSON 84
The Mafia Is a Brand Name: When to Franchise
ONE reason a Mafia associate works so hard to get in with a family is because once he’s in, he has the potential to earn much more using the family name.
Pete Penovich was a Chicago gambling boss during the time of Al Capone. At Capone’s criminal trial, Penovich testified that he voluntarily gave up 100 percent of his own profitable gambling machine when he was offered 25 percent to throw in with Capone’s Outfit. Penovich said that the original 25 was later cut down to 5 percent. Yet he was never forced to stay with the Outfit, and earned more at 5 percent under the Capone franchise than he had earned alone.
The Capone gambling franchise offered Penovich a larger clientele, better locations, and strong protection.
For similar reasons, Aunt Mary’s Coffee Shop might convert to a Starbucks.
Think about it.
LESSON 85
It’s Good to Be King: But No One Is Above the Law
LONG before there was John Gotti of Queens, who considered himself a king, there was King John of England, who considered himself a don.
June 15, 1215. A sit-down was arranged at Runnymede near Windsor Castle in England. King John was about to meet with his barons, or capos. By this time, everyone in the realm was disgusted with the king’s horseshit; he thought he was above the law. The barons could have easily whacked him but instead they gave him an ultimatum.
They told their king that he ruled by their consent and was therefore bound by the same rules as everyone else. They also made it clear to him that if he broke any rules, they were going to whack him. King John got the message.
Four hundred years later, in 1649, King Charles I of England ignored the rules and his capos chopped off his head. They don’t fuck around in England.
My father always said . . . if you break the rules, you end up in a dumpster. If I break rules, meaning himself, they’re gonna put two in my hat and put me in a dumpster. That’s the way it works.
—John Gotti, Jr., quoting his father, John Gotti, Sr.
A Lucchese mobster once told me, “The family belongs to us. We put our boss there, an’ we can take him down.”
How often do leaders slip into the delusion that they’re ab
ove the rules?
Usually, the body of a Mafia don drops along with his approval rating. This danger keeps most bosses in line.
Colombo had to go because he . . . believed he was bigger than the mob, that he was indestructible. Wrong.
—Joey Black
You might think, Well, I’m not a Mob boss, no one’s going to shoot me. Think again. Plenty of employees go postal. You’re also not immune to employee discontent. A petty employee might break the pencil sharpener or water cooler, steal the pens and pencils. No big deal. What about the employee who gives away company secrets, that inside guy I spoke about earlier? Every company has its share of jerks, you can’t help that. But if you’re disliked, you risk a consensus of enemies.
Al Capone was liked by his employees. He owned a piece of an Italian restaurant where a rival mobster, Joseph Aiello, offered ten grand to the chef to sprinkle a little poison over Capone’s pasta instead of parmesan cheese. The chef, who liked Capone, went straight to Big Al and told him about the plot.
I liked running booze for Dean. He paid well; he never stiffed his drivers. . . . He really believed in treating his people well.
—Employee of Chicago mobster Dean O’Banion, quoted in T. J. English, Paddy Whacked
Unlike Capone, Aiello’s employees weren’t very fond of him. He died with thirty holes in him, about the same amount of holes on a parmesan cheese grater, the instrument that might’ve killed Capone if he hadn’t been so well liked.
LESSON 86
Guys Like Us, Guys Like Them: Stick with What You Know
ONE day I was bullshitting with another mobster when we heard over the radio that the space shuttle had landed safely.
“Fuckin’ amazing,” I said. “Imagine the brains it takes to get that fuckin’ thing into space and back.”
Mob Rules Page 17
