Anti-Racketeering Act of 1934
The Anti-Racketeering Act of 1934 was a significant piece of legislation aimed at combating organized crime in the United States during a time when gangster activity was on the rise. Proposed by Assistant Attorney General Joseph B. Keenan, the act sought to empower federal authorities to assist local law enforcement struggling against crime syndicates that used violence, extortion, and bribery to control business and politics. The legislation defined racketeering broadly, encompassing various acts that interfered with interstate commerce through coercion or threats. Convictions under the act carried severe penalties, including long prison sentences and hefty fines.
This act was part of a broader set of crime-fighting measures supported by President Franklin D. Roosevelt and Congress, reflecting a federal commitment to address the growing influence of organized crime. The Anti-Racketeering Act remained in effect until it was revised by the Hobbs Act in 1946, which expanded its scope. Later, in 1970, the Racketeer Influenced and Corrupt Organizations Act (RICO) further strengthened the government's ability to prosecute racketeering activities. Overall, the Anti-Racketeering Act of 1934 played a crucial role in shaping the legal framework against organized crime in the United States.
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Anti-Racketeering Act of 1934
The Law: Federal legislation enacted to protect trade and commerce from interference by criminal threats of violence or coercion
Date: Became law May 18, 1934
Significance: The Anti-Racketeering Act was the first federal law enacted to fight the control that organized crime was suspected of holding over local communities.
During the 1920’s and 1930’s, there was a significant increase in gangster activity and organized crime in the United States. Groups of criminals used bribery, extortion, threats, and violence to manipulate and control political officials, judges, and police officers and to harass local businesses. These groups were suspected of controlling gambling, prostitution, and the sale of illegal alcohol. Local authorities felt helpless in their fight to end criminally controlled rackets.
The 1934 Anti-Racketeering Act was proposed by Assistant Attorney General Joseph B. Keenan. Keenan, who testified before the Senate Judiciary Subcommittee on March 2, 1934, asserted that federal authorities needed an antiracketeering law to help fight organized crime. Racketeers were debilitating legitimate businesses and communities. To fight back, local authorities needed assistance from the federal government. The Anti-Racketeering Act was one of six changes in the criminal justice code recommended by Keenan to aid the Department of Justice in its goal to put every gangster, racketeer, and kidnapper out of business and into jail.
The Anti-Racketeering Act was one of several crime-fighting bills submitted to Congress by Senator Hy Ashurst of Arizona and Senator Royal Copeland of New York. Reflecting the recommendations made by Keenan, these bills aimed to reduce crime in the United States by increasing the powers of the federal government to assist local communities. The crime bills were vigorously supported by President Franklin D. Roosevelt. The House of Representatives quickly approved all six bills on May 5, 1934, and the Senate passed them on May 15. Numerous criminals were subsequently arrested and convicted under the Anti-Racketeering Act.
Under the Anti-Racketeering Act, racketeering was defined as any act or threat of violence committed to divert or interfere with interstate commerce and any actual or intended attempts at extortion in connection with interstate commerce transactions. Racketeering included any acts or coercions used to force an individual or business to join or not to join any organization or to buy or not to buy goods. It included any acts of violence to individuals in connection with such activities. Those convicted of racketeering would receive a maximum of ninety-nine years in prison and a fine commensurate with the profits derived from racketeering transactions.
The Anti-Racketeering Act remained unchanged until 1946, when Congress passed theHobbs Act. The Hobbs Act placed previously exempted illegal labor-union activity within the reach of federal prosecutors. In 1970, Congress passed the Racketeer Influenced and Corrupt Organizations Act (RICO), which increased penalties for those convicted of racketeering and permitted the seizure of assets acquired or used at the time of the criminal activity.
Bibliography
Cressey, Donald R. Theft of the Nation: The Structure and Operations of Organized Crime in America. New York: Harper & Row, 1969.
Lyman, Michael D., and Gary W. Potter. Organized Crime. 3d ed. Upper Saddle River, N.J.: Prentice-Hall, 2000.