Nelson Johnson - Boardwalk Empire - The Birth, High Times, and Corruption of Atlantic City

Farley’s dominance made the senate’s committee system meaningless. With Hap in control, the committees had no function except for political window-dressing. The only senate committee of any real importance was Judiciary, which passed upon nominations of the governor. Farley was either chairman of that committee or its dominant member during most of his career. For the next 25 years, Hap Farley was an insurmountable reality with whom every governor, regardless of party, had to contend. He could not be ignored. Farley controlled the senate so totally that it was political suicide to oppose him. “I can remember sitting in on more than one meeting between Hap and a governor. Hap’s agenda was always first.” The governors either dealt with Hap Farley or had their programs frustrated.

One bill that passed into law in 1945 demonstrates the power that Farley had attained after four years as senator. In September 1944 the Boardwalk was severely damaged by a hurricane. Whole portions of it had been washed away. It was wartime and Atlantic City’s government didn’t have the finances for the necessary repairs. Farley and Atlantic County Assemblyman Leon Leonard sponsored legislation to create the Municipal Improvement Tax or “Luxury Tax.” The Luxury Tax was special legislation designed to permit Atlantic City to levy a sales tax, something neither state government nor any other city in New Jersey had the power to do. The bill would permit a 5 percent tax on all retail sales, including food and drink in public restaurants, hotel rooms, and other services and entertainment. The idea was popular in the resort as the bulk of the revenue raised would come from tourists. It was estimated that the Luxury Tax would gross $500,000 to $800,000 per year and was to expire after a single summer season.

Securing the necessary votes in the senate was routine. Despite the opposition of a lone Republican Senator from Essex County, Farley had 15 votes, four more than required. The problem was in the assembly, where 31 votes were needed, and again the opposition came from the Republicans of Essex County. The Essex County Republicans had campaigned for election the previous year by running against new taxes of any kind. Without the four Republican votes from Essex County, there were only 28 Republican votes available. Farley tried every tactic he could think of, but the Essex County Assemblymen wouldn’t budge. Rather than see his bill go down to defeat, Farley turned to Nucky Johnson’s old ally, Jersey City Mayor Frank Hague.

Hudson County Democratic boss Frank Hague controlled four votes in the assembly, and Farley had something he wanted. There were two Republican bills aimed at Hague’s machine, both of which had the support of Governor Edge. One bill limited the jurisdiction of the Hudson County Traffic Court, reducing the authority of Hague’s handpicked magistrates. The other was designed to make the Hudson County Boulevard Commission a bipartisan agency—the commission was a major source of patronage. Hague wanted both bills killed, and only Farley could do that. Farley defied the governor and promised Hague the bills would never reach the floor of the senate. In exchange, Hague delivered his four votes and Farley got what he wanted. More than 50 years later the Luxury Tax is still in effect, generating millions of dollars in revenue.

With each re-election Farley’s presence loomed larger in the state house. In 10 years as senator he had become the most respected, and feared, powerbroker in New Jersey. To get anything done in Trenton, you had to see Hap. His power brought attention, and between 1946 and 1950 Farley was subjected to one investigation after another. His role as attorney for both the Atlantic City Race Track and a local contracting firm, Massett Construction Company, were scrutinized, as were the finances of Atlantic City’s government and the county Republican organization. In each instance Farley came away unscathed. Rather than tarnish his image, these investigations increased his stature.

One inquiry into Farley’s empire that attracted nationwide publicity was the U.S. Senate’s investigation into organized crime. In 1951 Estes Kefauver, U.S. Senator from Tennessee, was gearing up to run for President. As part of his campaign he had declared war on organized crime and the rackets. Using his position as chairman of a Senate Committee, Kefauver went from one city to another holding public hearings, exposing the local crime syndicates. During the preceding year there was a rebellion by several Atlantic City police officers, which attracted national attention and placed Farley and his organization high on Kefauver’s list.

In the summer of 1950 a group of police officers and firefighters organized themselves in an effort to secure a wage increase. The average police officer received an annual salary of less than $3,000; they were seeking a pay increase of $400 per year. The wage demands weren’t taken to Mayor Altman or the city commission but rather to Farley. City hall was filled with people handpicked by Farley. He was the puppeteer, and city government moved as he pulled the strings. When the city commission held its weekly caucus, Farley was always on hand for key decisions. No public contract, tax assessment, fire inspection, liquor license, or Boardwalk concession received approval if Hap said no. The leaders of this group knew they could never get a pay raise without his support.

Farley met with a delegation of employees and heard their requests. As usual he was cordial and assured them he’d “work something out.” The employees took this to mean they’d receive a raise. Several city commission meetings came and went with no action taken or any mention of their request. When approached a second time, Farley told the group’s leaders they’d have to be patient a while longer. Rather than wait, the group began a petition drive. Their game plan was to force a public question for their pay raise onto the ballot at the November election of 1950. Circulating their petition door-to-door, they gathered more than 16,000 signatures. With that type of public support, they believed Farley and the city commissioners would have no choice but to support them. They were wrong.

Farley went to a mass meeting of police officers and fire fighters and asked them to withdraw their request for the referendum. The leaders of the petition drive refused. Farley responded by having a loyalty oath circulated. The oath amounted to a counterpetition for police and fire fighters to renounce the referendum and to accept a future wage ordinance to be approved by the city commission. City employees who had signed the loyalty oath were expected to show their paper ballots (the election was pre-machine voting) to the poll workers. The intimidation worked. The referendum proceeded as scheduled and was soundly defeated. The question received the support of less than half the number of voters who had signed the petition, humiliating the group’s leaders.

Three of the movement’s spokesmen were policemen Jack Portock, Fred Warlich, and Francis Gribbin. They were bitter at their defeat and determined to get revenge. They retaliated by hitting Farley’s organization where it hurt.

After Nucky Johnson went to jail, and during World War II, the “slough” had been on more often than not. The slough was the term used to describe the closing of the gambling rooms because of outside pressure, first the federal investigators and then the U.S. Army, which stationed thousands of recruits in the resort’s hotels during World War II. By 1950 things had returned to normal. While Farley’s people were less brazen than Nucky Johnson, the rackets flourished under Hap. Protection money continued to be paid to the organization with Stumpy Orman tending to such matters, keeping Farley one step removed from handling payoffs.