The Myth of Capitalism

Chapter TwoDividing Up the Turf

Our competitors are our friends.

Our customers are our enemies.

—James Randall, president, Archers Daniel Midland

Turf wars are bad for business. The Mob understands that, and businesses do as well.

In 1931, after a very bloody power struggle known as the Castellammarese War, peace came to the Italian‐American mafia in the United States. The organized Mafia Commission was created to mediate conflicts and divide the territory after Charles “Lucky” Luciano ordered the killing of Salvatore Maranzano, the capo di tutti capi (“boss of all bosses”). As a youngster, Maranzano had wanted to become a priest and even studied to become one, but drifted into the Mob.¹ Maranzano wanted to establish peace and divide up the United States among families, but he saw himself as the master at the top. That did not suit many of the families, who wanted their territory, without a boss.

“Lucky” Luciano quickly arranged which families would share power to prevent future turf wars. He abolished the title of capo di tutti i capi, and instead, maintained control through the Commission by forging alliances with other bosses. The Mafia Commission divided up New York among the Five Families: the Bonanno, Colombo, Gambino, Genovese, and Lucchese families.² As long as they stayed off each other's streets, things were fine.

The Commission was open minded and cooperative. It had representatives from the Los Angeles crime family, the Philadelphia crime family, the Buffalo crime ...