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Louis Lipschultz
(Photo by kind courtesy of Mr. Randall Lipschultz and the Lipschultz family)




 Louis Lipschultz was the brother in law of Jack Guzik who was Capone's money man.
He was the connection to getting properties connected to the mob such as hideouts, businesses for gambling, beer distribution and such. In essence, he was the Capone mob business manager.
Louis was born in Illinois on August 1,1893, to Harris and Rachel Lipschultz. His fdather was a junk peddler and his mother was a homemaker. Louis had four sisters and three brothers. In 1907, one of his sisters named Rose married a man by the name of Jack Guzik. This man would be an important figure for years to come in the Chicago mob outfit.

In 1910, at only 16 years old, Louis is already working as a messenger boy for the Western Union Telegraph office. He does this because his father had passed away, and now Louis had to help out the family.

By 1920, after  staying on the straight path, and working hard, Louis becomes the credit manager at the Western Union Company.

Mid 1920's, fed up of the toiling for low wages, Louis Lipschultz becomes involved with bookmaking and gambling operations in Cicero through his brother in law.  Also because of his relation to Jack Guzik, he gets a wink from the mob by only paying them out low cut of the profits in order to operate unheeded.


Mr. Lipschultz owned the land at Courtes Oreilles in Wisconsin that later turned into the famous Capone Hideout. While Capone may have passed through there, he never lived nor owned the place. Edward J. O'Hare, who was a St. Louis lawyer that went into business with the Capone mob in order to run the dog and horse tracks in Cicero purchased the land as a trustee for a St. Paul concern. Then Lipschultz took ownership of this land with his wife.
The land and house then became under ownership of Edward O'Hare, who then built a luxurious cabin there, and spent tme with his daughter and son. It was also his love nest for his new girlfriend at the time named Ursula Sue Granata. After his assassination in 1939, the land reverted back to the Lipschultzes who then sold it once again a couple of years later. After that, it was then that the Capone ownership legend was suddenly born.

Edward J. O'Hare and Louis Lipschultz were also connected and their association was linked to the Hawthorne Kennel Club for 1928, and 1929. In 1928 ,O'Hare was President and Lipschultz was listed as Treasurer. In 1929, John Patton was sent in to join them and Lipschultz was relegated onto the board of directors. The dog track soon to be horse track became heavily mobbed up. The Hawthorne Kennel Club became the Sportsman racetrack in 1932, after dog racing as banned.






Corporation listing for 1928.
(Courtesy of Mr. Randall Lipschultz)









Lipschultz was a shrewed businessman making sure to cover his tracks in later years after being convicted of income tax evasion.

(Photo by kind courtesy of Mr. Randall Lipschultz and the Lipschultz family)



The income tax rap was just not for Lipschultz. The IRS had been taking down gangsters way before Al Capone. The list included gangsters like Sam Guzik, Terry Druggan, Frank Nitto, Ted Newberry, Ralph Capone and many others.

What became uncanny was the number of gang members, and associates falling down to the IRS charge. The reason being is they had a government informant in their ranks feeding information about their business practices. Edward J. O'Hare was one of them who had played a pivotal role in bringing info on several Capone gangsters. He did this to save himself from his own tax problems and try to ridding himself of the gangster element ever present at his tracks.

Louis Lipschultz and Jack Guzik are both also trapped in the income tax net. While Guzik is tried and eventually sentenced to 5 years, Louis is indicted for failure to pay income tax for 1927, and 1928 totaling over $200,000 from illegal activities. On June 8, 1931, his trial is set for court, but the case drags on.  On February 21,1936, after many years of delays, Lipschultz will eventually evade prison time, pay $7000 in a compromise settlement, and get away with just a fine for $500. Two felony counts and a misdemeanor were stricken off.


SEE O'HARE


In 1948, Cicero town president John Stoffel appointed as police superintendant Joseph Horejs to clean up Cicero. Horejs told gambling boss Louis Lipschultz to take his bookmaking operation out of Cicero. Shortly after this, Horejs was fired and replaced.
This showed the real power of Lipschultz and the Chicago mob connections.



Louis Lipschultz was well respected by lawyers, politicians and law officials right up to his senior years. As the later photos denote, he was still always impeccably dressed.









Louis Lipschultz will pass away on May 20, 1987. His death will go unnoticed in the local papers.
Louis made sure to fly under the radar right until the end!







My special thanks to Mr. Randall Lipschultz, and to the Lipschultz family
 for without whom, this page would not be at all possible.