By: HISTORY.com Editors
Mobster Dutch Schultz is born
Arthur Flegenheimer, who will go on to become one of New York’s most feared criminals under the name “Dutch Schultz,” is born in the Bronx. Thirty-three years later, his life came to a violent and bloody conclusion when he was shot down in the men’s room of the Palace Chophouse in Newark, New Jersey.
After dropping out of grade school, Flegenheimer joined a local gang. He stole the nickname of another thug and from then on was known as either Dutch Schultz or “the Dutchman.” He soon became involved in bootlegging, bringing liquor down from Canada during the early Prohibition years, and making his own beer.
How Prohibition Created the Mafia
Starting in January 1920, the United States became a dry country. Prohibition banned the manufacture and sale of alcohol in an attempt to civilize unruly Americans (and some other reasons). The experiment had many unintended consequences, but most dangerously, it fostered the rise of organized crime and the American Mafia.
Within a few years, Dutch Schultz was one of the biggest gangsters in New York, employing as many as 100 gunmen to enforce his rackets—one of whom, Legs Diamond, split from Schultz and started his own operation. When Diamond’s gang began hijacking Schultz’s liquor shipments, a full-scale war broke out. On December 19, 1931, the war ended abruptly: Diamond was shot 17 times by one of Schultz’s hit men. Schultz reportedly quipped, “Just another punk caught with his hands in my pockets.” With Diamond’s competition eliminated, Schultz’s operation was clearing an estimated $20 million a year.
In 1933, prosecutors charged Schultz with tax evasion. After the trial was moved to a small upstate New York town, Schultz hired a public relations firm to change his image. He donated a lot of money to charity and briefly gave up his expensive wardrobe. The act worked: Schultz was acquitted. However, when he returned to New York City, the authorities were more determined than ever to bring him in.
In a meeting with several other major organized crime figures, Schultz demanded that they kill Thomas Dewey, the city’s special prosecutor. But, not wanting to draw any more attention to their own illegal operations, the other leaders decided to eliminate Schultz instead.
On October 23, 1935, Schultz was plotting to kill Dewey with his gang at the Palace Chophouse when Charlie “Bug” Workman walked into the restroom and shot him as he was washing his hands. Workman then proceeded to kill three others in the Schultz gang. But Schultz did not die instantly. He was delirious and rambled to police officers trying to identify the killer. Eventually, he slipped into a coma and died soon thereafter at the age of 33.
Also on This Day in History
Discover more of the major events, famous births, notable deaths and everything else history-making that happened on August 6th
Related
Crime
42 videos
The brutal 1947 murder in Los Angeles of aspiring actor Elizabeth Short has never been solved. But there is no shortage of theories.
The FBI released two sketches of the Unabomber suspect: the first in 1987 and a second, which became iconic, in 1994.
Orphaned at 14, Billy the Kid became one of the Wild West’s most legendary outlaws. But how much of his reputation matches the real man?
About the author
HISTORY.com works with a wide range of writers and editors to create accurate and informative content. All articles are regularly reviewed and updated by the HISTORY.com team. Articles with the “HISTORY.com Editors” byline have been written or edited by the HISTORY.com editors, including Amanda Onion, Christian Zapata, Cristiana Lombardo and Adrienne Donica.
Fact Check
We strive for accuracy and fairness. But if you see something that doesn't look right, click here to contact us! HISTORY reviews and updates its content regularly to ensure it is complete and accurate.
Citation Information
- Article Title
- Mobster Dutch Schultz is born
- Author
- HISTORY.com Editors
- Website Name
- History
- Date Accessed
- October 29, 2026
- Publisher
- A&E Television Networks
- Last Updated
- May 27, 2025
- Original Published Date
- November 13, 2009
