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

Another person who helped transform Atlantic City was Arthur Goldberg of Park Place Entertainment, who died at age 58 in October 2000. Smart and tough, yet ethical and courteous, almost courtly, Goldberg was a leader in the true sense of the word. In the brief period he was active in the gaming industry he earned an enviable reputation with casino moguls and Wall Street investors alike. In August 1999, Barron’s , the Dow Jones business and financial weekly, declared him “King of Craps” in a feature article.

Arthur Goldberg’s empire began with his family’s Newark-based trucking company, Transco Group, a hauler of goods for such national accounts as Tropicana, Safeway, and Pepsi-Cola. A graduate of Villanova Law School, he gave up the law after only two years to run the family business for his father, who had suffered a serious heart attack. In 1979, with earnings from Transco, Goldberg acquired a major position in Triangle Industries, a wire and cable maker. He quickly became CEO of Triangle and realized a $7 million profit on his investment when Triangle was bought by other investors a year later. In 1983, Goldberg made another large investment into International Controls, a conglomerate producing everything from bomb casings and electric utility towers to tractor-trailers. Again, Goldberg became CEO and several years later, after improving the value of the company, sold his stock for another large profit. His reputation as an investor willing to get his hands dirty by involving himself in the management of the companies he bought added to Goldberg’s aura.

As the decade of the ’80s came to a close, Goldberg had been so successful that he found himself with little to do. In 1989, he acquired controlling position of a food distributor, DiGiorgio Corporation, which sold Italian food items. It was profitable, but not enough of a challenge. A year later he paid $14 million, or $8 a share, for a 5.6 percent interest in Bally Entertainment, Inc., the owner of Bally’s Park Place Casino Hotel. At the time, Bally’s was in serious trouble and was in danger of being forced into a Chapter 11 bankruptcy filing.

Goldberg had bought into a headache. Consistent with past ventures, he dove into the casino business feet first, never contemplating failure. He went to Bally’s Board of Directors with a turnaround plan, conditioned on his being named Chairman and CEO. The Board accepted his proposal and Goldberg never looked back. His performance in turning Bally’s around was extraordinary by anyone’s yardstick. Investors who stayed with Goldberg from the day he joined the company in November 1990, to the Hilton Hotel’s purchase of Bally’s nearly six years later, saw their shares increase in value from $3.50 to $28. At Goldberg’s encouragement, despite the earlier debacle, Hilton reapplied for licensing and this time was successful.

The Hilton merger moved Arthur Goldberg and the Hilton organization—and with them, Atlantic City as well—to the first tier of the gaming industry, worldwide. Goldberg became President of Hilton Gaming and brought 11 Hilton properties, including the Flamingo and Las Vegas Hilton, under his control with the four he had. That total increased to 18 gaming properties with the purchase of three major Mississippi casinos when newly formed Park Place Entertainment was spun off from Hilton. The final addition to his empire before his early demise was Paris-Las Vegas, a lavish $800 million casino hotel that opened in September 1999. Arthur Goldberg set the standard for the new gaming entrepreneur in Atlantic City and the nation. He is sorely missed.

Several political leaders whose efforts in the public arena throughout the 1980s and ’90s complimented the dynamism of people like Goldberg, Trump, and Wynn are James Usry, William Gormley, and James Whelan. Despite differences in politics and styles, each, in their own way, worked to keep Atlantic City moving forward.

James Usry was part of the last wave of Blacks drawn from the South to Atlantic City’s hotel industry. Born in Athens, Georgia, in 1922, Usry’s family came north shortly after his birth. He was a soldier in World War II, serving in a famous segregated unit, the “Black Buffaloes.” An outstanding athlete, he played for a short time with the “Harlem Globetrotters.” A graduate of Atlantic City High School and Lincoln University, Jim Usry devoted most of his career to education. As a teacher and school administrator, he touched the lives of thousands of local children.

Usry had been a community leader for years prior to making his first run for political office in 1982. He lost to Michael Matthews in a bitterly contested election. Following Matthews’ indictment, Usry was elected Atlantic City’s first African-American mayor in the recall election of 1984. Re-elected to a full term in 1986, Jim Usry’s agenda was Atlantic City’s residents. As stated by the Press of Atlantic City at the time of his death:His legacy is found in the daycare facilities, the youth centers, and the new housing complexes that dot the city—even though many of those improvements were built after he left office. He was the one who sent the message: Atlantic City’s residents cannot be passed by.

Jim Usry’s tenure as mayor was scarred by bribery charges arising out of the “COMSERV” investigation in 1989. COMSERV was a seriously flawed state “sting operation,” long on press releases and short on hard evidence. Usry eventually pled guilty to a minor campaign finance violation and was defeated in his re-election bid in 1990 by James Whelan.

Jim Whelan, a genuine Democrat (not an Atlantic City “Republicrat”), came to city politics by a different route. A native of Philadelphia, he vacationed in Atlantic City during the summer and as a teen became a lifeguard on resort beaches. After completing college at Temple University, where he was an All-American swimmer, Whelan relocated to Atlantic City and was hired as a teacher and swimming instructor in the local school system. Through his involvement with both students and parents, he built a strong network of supporters. In the ’80s he was elected twice to City Council, where he was often a lone voice of reason. During his several terms as mayor beginning in 1990, Jim Whelan displayed uncommon political courage in leading a city divided by race and petty factions. He is the first post-Farley era mayor to govern effectively. During Whelan’s three terms in office, whole portions of the city were transformed. His integrity and maturity place him in a class apart from political types. Atlantic City’s debt to Jim Whelan is a large one.

The third player who has had a key role in beginning the rebuilding of Atlantic City over the past 20 years is State Senator William Gormley. Bill Gormley is steeped in city and county Republican politics. He is the son of the late Atlantic County Sheriff Gerald Gormley, a loyal lieutenant in the Republican organization under both Nucky Johnson and Hap Farley. Gormley is a graduate of Notre Dame and Villanova Law School. Despite the makings of an attorney, politics and government are his profession. As a legislator, con-ciously or not, he emulates Hap Farley. Regardless of his aspirations for higher office, he’s been successful at exploiting his relationships in the state capitol to Atlantic City’s benefit. In the 20 years he has been in Trenton, Bill Gormley has earned the respect of every key player in the State House. In the time he has served as Chairman of the Senate Judiciary Committee, he has grown into one of the most powerful public officials in New Jersey. He should continue to be a force in both Trenton and Atlantic City.

Working together throughout the ’90s, Gormley and Whelan provided not only the leadership but the vision and political will to get things done. Whelan was the mayor Gormley needed as an ally and the city needed as a leader in order to begin rebuilding the resort. And the rebuilding has begun.