Why Were Jukeboxes a Preferred Income for Organized Crime at the American Midcentury?
Why were jukeboxes a preferred income for organized crime during the midcentury in America? Although they may not have been the most lucrative alternative, the appeal lied in their all-cash transaction and poor accounting mechanisms, making them an ideal cover for shady activities.
Nickels and Dimes: The Cash Flow
Jukeboxes were a steady source of income, with people using them all the time for entertainment. Organized crime organizations recognized this potential and promptly got involved, seeing a business opportunity in these machines. Their involvement stemmed from their nature as capitalists, always seeking to capitalize on any available avenue for profit.
Unlike many other businesses, jukeboxes operated almost exclusively on cash transactions. The actual revenue generated from these machines was difficult to track due to poor accounting practices. A single operator would drive around collecting money from different locations, and the exact amounts collected were often kept secret. This made it easy to manipulate the cash flow by slipping a few extra bucks into the system, making the business a convenient and accessible means for money laundering.
A Perfect Cover for Illicit Activities
The cash nature of the business offered a tax advantage. Since all transactions were in cash, there was less risk of financial irregularities that could otherwise be flagged by tax authorities. The only times jukebox businesses became problematic, even violent, were when multiple criminal organizations tried to monopolize them in a particular location, or when the establishment owners became uncooperative. Even in such instances, the jukeboxes' cash transactions made it challenging to trace any illegal activities back to their source.
The mass appeal of jukeboxes also contributed to their use by organized crime. They were popular among teenagers, who frequented places like bars, soda fountains, and bowling alleys where jukeboxes were installed. The sheer volume of cash transactions resulted in a significant revenue stream for the mob. It is estimated that they reported only about 25% of what they actually took in, highlighting the extensive use of these machines for illicit financial activities.
The Impact on Music and Entertainment
The ubiquity of jukeboxes also played a role in how new music was introduced to consumers. These machines served as a portable means of entertainment, breaking new music to the masses. Jukeboxes became a legal and necessary part of certain types of entertainment venues, such as bars, burger joints, and restaurants, where they required routine maintenance from the operators.
There were no other easily portable music players at the time, making jukesboxes a unique and valuable asset for various businesses. Their legal status and cash-based transactions provided an environment that attracted the attention of organized crime, who saw the potential for significant financial gains and powerful tools for their operations.
In conclusion, while numbers alone wouldn’t truly capture the extensive use and impact of jukeboxes by organized crime in the midcentury, the combination of their all-cash transactions, ease of manipulation, and overall impact on society made them a preferred target for such illegal activities.