The Underworld
September 4, 2025
10 minutes

Chicago’s Bloodstained Century: Gangsters, Graft, and the Birth of Organized Crime

Uncover the violent, corrupt underworld of early 20th-century Chicago, where gangsters like Al Capone ruled the streets, Prohibition fueled a blood-soaked bootlegging war, and City Hall was in the mob’s pocket.

Chicago’s Bloodstained Century: Gangsters, Graft, and the Birth of Organized Crime

A City Forged in Fire and Blood

In the early 20th century, Chicago was a city of contradictions. It was a place of towering skyscrapers and bustling stockyards, where immigrants from Europe and the American South came to chase the promise of a better life. But beneath the gleaming facade of progress, Chicago was also a city of corruption, violence, and organized crime. The streets were ruled by gangsters like Al Capone and Dean O’Banion, the police were often in the pockets of the mob, and the political machine thrived on bribes and backroom deals. This was a city where the American Dream collided with the American Nightmare, where the line between law and lawlessness blurred, and where the violence of the era would shape Chicago’s identity for generations to come.

The early 20th century in Chicago was a time of brutal competition, where bootleggers, union bosses, and politicians fought for control of the city’s lucrative vice trades - gambling, prostitution, and, most famously, alcohol during Prohibition. The gangs that rose to power in this era were not just criminals; they were entrepreneurs, politicians, and even folk heroes to some. But their reign of terror left a trail of bloodshed that would stain the city’s history. From the St. Valentine’s Day Massacre to the corruption of City Hall, Chicago’s crime history is a story of ambition, betrayal, and the human cost of a city’s unchecked greed.

The Rise of the Gangsters: How Chicago Became the Capital of Crime

The Birth of the Chicago Outfit

The roots of Chicago’s organized crime can be traced back to the late 19th century, when the city’s rapid industrialization and influx of immigrants created fertile ground for criminal enterprises. The first major gang to emerge was the Black Hand, a group of Italian extortionists who targeted their own community. But it was the arrival of Prohibition in 1920 that transformed Chicago into the capital of organized crime.

Prohibition turned the sale and distribution of alcohol into a multi-million-dollar industry, and the gangs that controlled it became some of the most powerful forces in the city. The Chicago Outfit, led by Johnny Torrio and later Al Capone, rose to dominance by controlling the flow of bootleg liquor from Canada and the Midwest into the city’s speakeasies and bars. The Outfit’s influence extended into politics, law enforcement, and even the courts, making it nearly untouchable.

The King of Chicago: Al Capone

No figure is more synonymous with Chicago’s crime history than Al Capone. Born in Brooklyn to Italian immigrant parents, Capone moved to Chicago in the early 1920s and quickly rose through the ranks of the Chicago Outfit. By the mid-1920s, he was the undisputed king of the city’s underworld, controlling a vast empire of speakeasies, brothels, and gambling dens.

Capone’s reign was marked by brutal violence. He was responsible for the deaths of hundreds of rivals, including the infamous St. Valentine’s Day Massacre in 1929, when his men, dressed as police officers, gunned down seven members of the rival North Side Gang in a garage on Clark Street. The massacre was a turning point in Chicago’s gang wars, solidifying Capone’s control over the city’s criminal underworld.

But Capone was more than just a gangster. He was a celebrity, a folk hero to some, and a symbol of the lawlessness that defined the era. He cultivated an image of a generous benefactor, donating to charities and feeding the poor during the Great Depression. But beneath the veneer of respectability, Capone was a ruthless killer who ordered the murders of anyone who stood in his way.

The North Side Gang and the Irish Mob

While Capone and the Chicago Outfit dominated the South Side, the North Side was controlled by the Irish mob, led by Dean O’Banion. O’Banion was a charismatic and ruthless gangster who made his fortune in bootlegging and hijacking. His gang, the North Side Gang, was one of the few groups that could challenge Capone’s dominance, and their rivalry would lead to some of the bloodiest years in Chicago’s history.

O’Banion’s death in 1924, at the hands of Capone’s men, set off a wave of violence that would last for years. His successor, George "Bugs" Moran, continued the war against Capone, culminating in the St. Valentine’s Day Massacre. Moran survived the massacre, but his gang was crippled, and he spent the rest of his life as a broken man, a shadow of the powerful gangster he once was.

The Places That Still Stand: Relics of a Violent Era

The Green Mill Cocktail Lounge: A Gangster’s Hangout

One of the few surviving relics of Chicago’s gangland era is the Green Mill Cocktail Lounge in the Uptown neighborhood. Opened in 1907, the Green Mill became a favorite haunt of Al Capone and his associates during Prohibition. The lounge was a speakeasy where gangsters, politicians, and jazz musicians mingled in the shadows. Today, the Green Mill is still a functioning jazz club, its dark wood interiors and dim lighting evoking the atmosphere of the 1920s. Some say the spirits of the gangsters who once frequented the place still linger, and that the sound of gunfire and laughter can sometimes be heard late at night.

The Green Mill’s backroom was allegedly used by Capone to conduct business, and it is said that the gangster’s ghost still lingers there. The club’s current owner, Dave Jemilo, has embraced its history, and the walls are lined with photographs of the gangsters and jazz musicians who once filled its rooms. The Green Mill is not just a bar; it is a living museum of Chicago’s gangland past.

The Biograph Theater: The Site of Dillinger’s Death

Another landmark tied to Chicago’s crime history is the Biograph Theater in Lincoln Park. This was the site of John Dillinger’s death in 1934, when the infamous bank robber was ambushed by FBI agents as he left the theater after watching Manhattan Melodrama. Dillinger, one of the most wanted men in America, was gunned down in the alley beside the theater, and his death marked the end of an era of high-profile gangsters in Chicago.

The Biograph Theater still stands today, though it is now a music venue known as the Vic Theatre. The alley where Dillinger fell is marked by a plaque, and visitors can still see the spot where he died. The theater’s history is a reminder of the violence that once gripped the city, and of the gangsters who became folk heroes in their time.

The Holy Name Cathedral: A Gangster’s Funeral

The Holy Name Cathedral on North Wabash Avenue is another site tied to Chicago’s crime history. This was where Al Capone’s rival, Dean O’Banion, was given a lavish funeral in 1924 after being gunned down in his flower shop. The funeral was a spectacle, with thousands of mourners lining the streets to pay their respects to the fallen gangster. The cathedral’s grand architecture and somber atmosphere make it a fitting place to reflect on the violence of the era.

Today, the Holy Name Cathedral is still an active place of worship, but its history is a reminder of the gang wars that once tore the city apart. The cathedral’s stained glass windows and towering spires stand as a stark contrast to the bloodshed that took place on its doorstep.

The Corruption Machine: How Crime Ruled City Hall

The Political Machine and the Mob

Chicago’s crime history cannot be understood without examining the role of politics. The city’s political machine, led by figures like "Big Bill" Thompson and later Richard J. Daley, was deeply intertwined with organized crime. Politicians and gangsters worked hand in hand, with the mob providing the muscle and the money to keep the machine running, and the politicians providing protection and influence in return.

The relationship between the mob and City Hall was symbiotic. Gangsters like Capone needed political protection to operate their businesses, and politicians needed the mob’s money and muscle to maintain their power. This corruption extended to the police department, where officers were often on the take, looking the other way when it came to mob activities or even acting as enforcers for the gangs.

The Role of the Police

The Chicago Police Department was notorious for its corruption during the early 20th century. Officers were often paid off by gangsters to ignore their activities or to provide protection. Some even worked directly for the mob, acting as muscle or lookouts. The police were so deeply compromised that it was nearly impossible to trust them, and many citizens saw them as little more than armed thugs in uniform.

The most infamous example of police corruption was the relationship between the mob and the police during Prohibition. Officers would tip off bootleggers about raids, accept bribes to ignore speakeasies, and even participate in the hijacking of rival gangsters’ shipments. The line between cop and criminal was so blurred that it was often impossible to tell them apart.

The Role of the Unions

Organized crime in Chicago was not just about bootlegging and gambling. The mob also had a stronghold in the city’s labor unions, particularly in the Teamsters and the longshoremen’s unions. Gangsters like Capone and his successors used the unions to extort businesses, control the flow of goods, and even influence elections.

The unions provided the mob with a steady stream of income through kickbacks and extortion, and in return, the gangsters provided the unions with muscle to break strikes and intimidate rivals. This relationship gave the mob even more power over the city’s economy and politics, making it nearly impossible to challenge their control.

The Gang Wars: Bloodshed on the Streets of Chicago

The Beer Wars

The competition for control of Chicago’s bootlegging trade was fierce, and the gangs that fought for dominance were willing to kill to protect their territory. The Beer Wars, as they came to be known, were a series of violent conflicts between rival gangs over control of the city’s lucrative alcohol trade.

The most notorious of these conflicts was the war between Capone’s Chicago Outfit and the North Side Gang. The two groups fought a brutal battle for control of the city’s speakeasies and breweries, with bombings, shootouts, and assassinations becoming almost daily occurrences. The violence reached its peak with the St. Valentine’s Day Massacre, but the war continued for years, leaving a trail of bloodshed across the city.

The St. Valentine’s Day Massacre

The St. Valentine’s Day Massacre is perhaps the most infamous event in Chicago’s crime history. On February 14, 1929, four men - two of them dressed as police officers - entered the SMC Cartage Company garage on North Clark Street, where seven members of the North Side Gang were gathered. The men lined their victims up against the wall and opened fire with Thompson submachine guns, killing six of them instantly. The seventh victim died shortly after.

The massacre was a turning point in Chicago’s gang wars. It solidified Capone’s control over the city’s underworld and marked the beginning of the end for the North Side Gang. But it also drew national attention to the violence in Chicago and put pressure on the federal government to take action against Capone and his organization.

The End of Capone

The St. Valentine’s Day Massacre was ultimately Capone’s downfall. The public outcry over the violence led to a federal crackdown on organized crime, and Capone was finally brought to justice - not for his numerous murders, but for tax evasion. In 1931, he was sentenced to 11 years in federal prison, effectively ending his reign over Chicago’s underworld.

Capone’s downfall did not end the violence in Chicago, but it marked the beginning of a new era. The Chicago Outfit continued to operate, but it was never again as powerful or as visible as it had been under Capone’s rule.

The Women of Chicago’s Underworld

The Madams and the Mob

While the gangsters of Chicago’s underworld were mostly men, women played a crucial role in the city’s vice trades. Madams like Mary "Polly" Adler and Myrtle Jones ran some of the most successful brothels in the city, catering to the wealthy and powerful. These women were not just passive participants in the criminal underworld; they were entrepreneurs who built empires of their own.

Adler, in particular, was a legendary figure in Chicago’s vice history. She ran a high-end brothel that catered to politicians, gangsters, and businessmen, and she was known for her intelligence, her business acumen, and her ability to navigate the dangerous world of organized crime. She was also a close associate of Capone, and her brothel was a favorite haunt of the city’s elite.

The Female Gangsters

While most of the gangsters in Chicago were men, there were a few women who made names for themselves in the criminal underworld. One of the most notorious was Ma Barker, who, along with her sons, led a gang of bank robbers and kidnappers in the 1930s. Though her operations were mostly outside of Chicago, her reputation as a ruthless criminal made her a legend in the city’s underworld.

Another female gangster was Diamond Annie, a madam and bootlegger who ran a string of brothels and speakeasies in the 1920s. She was known for her sharp tongue and her ability to outmaneuver the police, and she was a respected figure in the city’s vice trades.

The Wives and the Widows

The wives and widows of Chicago’s gangsters also played a significant role in the city’s crime history. Many of these women were left to pick up the pieces after their husbands were killed or imprisoned, and some even took over their husbands’ criminal empires. Mae Capone, Al’s wife, was known for her loyalty and her ability to manage her husband’s affairs while he was in prison. After his death, she lived quietly, but her name remained synonymous with the era of Chicago’s gangsters.

Other women, like the widows of the St. Valentine’s Day Massacre victims, were left to raise their children alone, often in poverty and stigma. Their stories are a reminder of the human cost of the gang wars, of the families that were torn apart by violence and the lawlessness of the era.

The Legacy of Chicago’s Crime History

The Birth of Modern Organized Crime

Chicago’s crime history in the early 20th century was not just a local phenomenon - it was the birthplace of modern organized crime in America. The gangs that rose to power in Chicago during Prohibition would go on to shape the national criminal underworld, establishing networks of corruption, extortion, and illegal trade that would last for decades.

The Chicago Outfit, in particular, became one of the most powerful criminal organizations in the country, with tentacles that extended into politics, labor unions, and even Hollywood. The Outfit’s influence can still be felt today, in the corruption scandals that continue to plague the city and in the gangs that still operate in its shadows.

The Impact on Chicago’s Identity

The crime and corruption of the early 20th century left a lasting mark on Chicago’s identity. The city became synonymous with gangsters, with the image of Al Capone and his ilks shaping the way the world saw Chicago. But the era also left a deeper legacy, one of resilience and survival in the face of adversity.

The immigrants who came to Chicago in search of a better life, the workers who built the city’s industries, and the families who endured the violence of the gang wars all contributed to the city’s identity. Chicago became a place where the American Dream was both realized and betrayed, where the promise of opportunity was tempered by the reality of corruption and violence.

The Lessons of the Past

The crime history of early 20th-century Chicago is a cautionary tale about the dangers of unchecked power and the cost of corruption. It is a reminder that the line between law and lawlessness is often thin, and that the systems we create to maintain order can be just as corrupt as the criminals they are meant to control.

But it is also a story of resilience. The people of Chicago - immigrants, workers, and even the gangsters themselves - found ways to survive in a city that was often stacked against them. They built communities, they fought for justice, and they left a legacy that continues to shape the city today.

The Ghosts of Chicago’s Crime History

The Hauntings of the Gangland Era

Chicago’s crime history has left its mark on the city in more ways than one. The sites of some of the most infamous gangland killings are said to be haunted by the spirits of those who died there. The garage on Clark Street, where the St. Valentine’s Day Massacre took place, is one of the most famous haunted sites in the city. Visitors and workers in the area have reported hearing the sound of gunshots and the cries of the victims, and some claim to have seen the ghostly figures of the men who were gunned down that day.

Other sites, like the old Lex Hotel, where Capone once had his headquarters, are also said to be haunted. Some claim to have seen Capone’s ghost, a shadowy figure in a pinstripe suit, wandering the halls of the hotel. Others report hearing the sound of jazz music and laughter, as if the ghosts of the gangsters and their molls are still partying in the rooms where they once held court.

The Legends of the Speakeasies

The speakeasies of the Prohibition era were not just places to drink - they were the heart of Chicago’s nightlife, where gangsters, politicians, and ordinary citizens rubbed shoulders in the shadows. Some of these speakeasies, like the Green Mill Cocktail Lounge, are still standing today, and they are said to be haunted by the spirits of the gangsters and flappers who once filled their rooms.

The Green Mill, in particular, is famous for its ghost stories. Some claim to have seen the spirit of a gangster who was shot and killed in the bar, while others report hearing the sound of jazz music and laughter late at night, long after the last patron has gone home.

The Echoes of the Past

The true haunting of Chicago’s crime history is not the ghost stories or the legends - it is the weight of the past itself. It is the knowledge that the city’s streets were once ruled by violence and corruption, that the political machine was built on bribes and backroom deals, and that the gangs that controlled the city’s vice trades were as much a part of its identity as its skyscrapers and stockyards.

For those who walk the streets of Chicago today, the echoes of the past are still there. They are in the old speakeasies that have been turned into trendy bars, in the buildings that once housed gangsters’ headquarters, and in the stories that have been passed down through generations. They are a reminder that the city’s history is not just a tale of progress and opportunity - it is also a story of struggle, of resistance, and of the human cost of a city’s unchecked ambition.

References

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  2. Bilek, E. (2004). The First Vice Lord: Big Jim Colosimo and the Birth of the Chicago Mafia. Barricade Books.
  3. Cohen, R. (2004). The Chicago Outfit. Arcadia Publishing.
  4. Helmer, W., & Bilek, E. (2006). The St. Valentine’s Day Massacre: The Untold Story of the Gangland Bloodbath That Brought Down Al Capone. Citadel.
  5. Kobler, J. (1971). Capone: The Life and World of Al Capone. G.P. Putnam’s Sons.
  6. Kohn, R. (2019). The Chicago Outfit: The History and Legacy of America’s Most Notorious Crime Syndicate. Charles River Editors.
  7. The Chicago Tribune. (2018). The Rise and Fall of Al Capone in Chicago. chicagotribune.com
  8. The New York Times. (2017). Chicago’s Gangland History: From Capone to the Outfit. nytimes.com
  9. The Guardian. (2019). The Women of Chicago’s Underworld: Madams, Molls, and Mob Wives. theguardian.com
  10. The Atlantic. (2020). The Legacy of Chicago’s Gang Wars. theatlantic.com
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  12. FBI Records. (2015). The Chicago Outfit and Organized Crime in the 20th Century. fbi.gov
Reading time
10 minutes
Published on
September 4, 2025
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Author
Diego A.
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