In 1936, the most powerful gangster in America went to prison, and the charge wasn't murder. It wasn't bootlegging, or extortion, or the hail of bullets that killed Joe the Boss over a late lunch in Coney Island. Charles "Lucky" Luciano was convicted on 62 counts of compulsory prostitution, and the case turned on a woman the mob had never once bothered to watch its mouth around.
Her name was Florence Newman, though she collected aliases the way other people collect stamps — Florence Brown, Florence Martin, Florence Marston. The tabloids gave her the name that stuck: Cokie Flo.
Two dollars, fifteen minutes
The stock market crash of October 1929 gutted nearly every business in America. Prostitution was not among them. The going rate was two dollars for fifteen minutes — about forty-five dollars a quarter hour in today's money — and the customers kept coming. In Depression-era New York the papers called the women bluesies, loose women, soiled doves. They called the brothels houses of ill repute. They called what was sold there counterfeit love, which is a lovely phrase for a transaction that had nothing whatsoever to do with love.
Illegal and enormously profitable is a combination that draws exactly one kind of investor.
A born gangster
Luciano was born in Sicily in 1897 and came to the United States with his family in 1906. He may have struggled with English, but he had no trouble at all explaining to his classmates who was in charge. His first business was a protection racket, run out of a schoolyard, protecting kids from boys exactly like him. Nobody mourned when he dropped out in 1914.
He made friends easily — Meyer Lansky, Buck Siegel, Giuseppe Masseria, the one they called Joe the Boss. In 1929 somebody beat Luciano, stabbed him, and left him for dead on a Staten Island beach; a police officer stumbled across him in time to save his life. Nothing personal, just business. Luciano was certain Joe the Boss had ordered it, and in April 1931 Joe the Boss was eating at a Coney Island restaurant called Scarpados when four gunmen walked in. The man who sent them was Charlie Luciano, and he came out of it with a promotion and a nickname.
A board of directors for crime
The first thing Lucky Luciano did as New York's new top boss was reorganize. He divided the city among five families and then went to Chicago with a proposal: a Commission, a board of directors to oversee the mob's interests nationally and settle disputes between families before they turned into street wars. He didn't want to be called boss of bosses. He wanted to be chairman of the board, which is a quieter kind of power and a much cleaner set of hands.
Then he turned his attention to prostitution, and saw what a man with an MBA brain sees: a chaotic market ripe for consolidation. His model was the chain store. Same services, same prices, same management, and independent operators who wouldn't come aboard were bullied and frozen out until they closed. It worked. It dumped roughly twelve million dollars a year into his pocket — close to $263 million today. He himself paid twenty dollars for a tumble, the going rate, sometimes tucking a five-dollar bill into a brassiere if he was feeling flush. Business was business.
Luciano ordered murders, ran bootleg liquor and chaired a national crime syndicate, and none of it touched him — he went down on 62 counts of compulsory prostitution, convicted largely because the mob talked business freely in front of a prostitute they didn't consider a person. Ten months later she took it all back.
Dewey gets a free hand
In 1934, a grand jury was convened to investigate racketeering in New York City, and what came out of it forced Governor Herbert Lehman to lean hard on District Attorney William Dodge until Dodge, ducking and weaving to the last, appointed a special prosecutor: Thomas E. Dewey.
Dewey had already jailed the New Jersey beer baron Waxy Gordon and had Dutch Schultz facing tax charges. He had a memory like an elephant and the tenacity of a starving dog on a bone, and his nickname was Admirable Dewey. He took the special prosecutor job on one condition — that he be the boss, with a free hand and the backing of every enforcement agency going. Two sides of the same coin, that one and Charlie.
Here's the irony that could break your teeth: when Dutch Schultz decided to assassinate Dewey, it was Luciano who vetoed it and had Schultz gunned down instead, in the men's room of the Palace Chop House in Newark. Killing a squeaky-clean public official would have been terrible for business. Lucky Luciano saved the life of the man who buried him.
The witness in scarlet lipstick
They took him on April Fool's Day, 1936, at the Arlington Hotel in Hot Springs, Arkansas, where he'd gone with his girlfriend, the Broadway dancer Gay Orlova. Ninety indictments. Extradition to New York. And for the first week of trial, Dewey had twenty witnesses and no case, because nobody could put Luciano in a room where a crime was discussed.
Then Florence Brown took the stand on Friday, May 22, 1936. She'd been in detention a week, taking what they called the narcotics cure, and she was so deep into withdrawal that the judge directed the prosecution to give her small doses of brandy at intervals so she could finish. Fidgeting, restless, clasping and unclasping her hands, wearing her trademark scarlet lipstick — and Luciano, who had been sitting through the whole thing in aggrieved indifference, suddenly started scribbling notes to his lawyers.
She described a car ride after a dinner in Chinatown. Jimmy Fredericks complaining that the bookers — the pimps and madams — were holding out on them. And Charlie: "Get all the bookers downtown tomorrow and we'll straighten the matter out." She described another meeting where he laid out the whole vision — "We could even get the madam on a salary or commission basis." The defense came at her hard and she didn't blink. "Just because a gal has a little trouble with dope, don't make her a liar."
Nancy Presser testified that women in Lucky's houses had their feet and stomachs burned, and some had their tongues cut out for talking. Thelma Jordan described being threatened with death. Mildred Harris, who'd begged Luciano to let her husband go straight and was coldly refused, finished what Cokie Flo started. The verdict covered 558 counts and took more than forty minutes to read. Guilty, guilty, guilty, guilty.
Sicily, Juarez, and a gas station
Lucky Luciano didn't stay in prison and he didn't escape. He served at Sing Sing, then at remote Dannemora, worked the prison laundry, and — good Catholic that he considered himself — arranged to get a church built. Then he cut a deal: mob intelligence for the U.S. Navy during the war. Dewey, unhappy about it, agreed to a commutation of Luciano's sentence on condition of deportation. Lucky walked onto a boat and went home to Sicily. His eight co-defendants got no such favor.
In March 1937, Cokie Flo recanted, saying Dewey had used her addiction to force a fabricated story out of her. Bette Davis played her that same year in Marked Woman. She and Mildred Harris took their article money to California and opened a gas station, of all things. It didn't last. She ended up in the brothels of Juarez.
She went toe to toe with the most powerful criminal organization in the country, and she walked away breathing, which almost nobody in this story managed. "Mr. Dewey got to be a hero. Charlie made out fine in the end. I lived my life."

