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Since before the
birth of the United States,

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alcohol, sex and gambling have
lurked in every dark corner.

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Every city has neighborhoods
that are offering leisure

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and vice and
sometimes seediness.

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I'll make it worth
your while.

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America's really fertile

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for these types
of sin industries.

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You just gotta pick your poison.

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At the turn
of the 20th century,

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visionary entrepreneurs,
Buck Duke,

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Jack Daniel, and Adolphus Busch,

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have turned small
regional indulgences

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into powerful national brands.

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Hedonism is in the
grasp of every American.

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♪ I can dance with the devil ♪

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Now, the temperance
movement is battling back.

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Who's Carrie Nation?

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A problem.

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If they wanna ban
the sale of cigarettes,

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let them.

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They'll only make the
rest of the country

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want them even more.

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And protection

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from sexually
transmitted diseases.

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Condoms, rubber condoms.

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Is outlawed.

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While one woman's
underground numbers racket

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will give rise to the
state lotto system.

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You're light.

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You think you can come
in here and intimidate me?

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As a battle
for America's soul erupts.

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You are under arrest

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for violating Section 37,
Article 2 of the penal code.

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America
will never go dry.

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You'll never get
away with this.

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Get out!

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♪ Aye aye ♪

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♪ I did it and aye aye ♪

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♪ I proved it and aye aye ♪

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♪ I finished, I came and I saw ♪

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♪ I gave it my all ♪

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♪ I changed the game ♪

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♪ I made it a boss ♪

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♪ Yeah ♪

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The Gilded Age,

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it's remembered as a time of
wealth, opulence and glamor,

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but a closer look
reveals another side.

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It was an age of excessive
aggression and business.

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The wealth was extraordinary

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and the poverty was
absolutely brutal.

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What we don't realize is there
was no social safety net.

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So you literally
could starve to death.

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You had to go beg in the street.

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Mark Twain describes
it as an age,

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where on the surface, everything
is gleaming with gold.

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But underneath that surface,
it's rotten at the core.

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You see that in the
proliferation of vices.

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Alcohol and tobacco

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are becoming easier
to find than ever.

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While they're still prevalent

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in sketchy saloons
and back alleys,

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now they're showing up in local
shops, the general stores.

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Driven by the first national
brands of their kind,

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Jack Daniel's, Budweiser,
and American Tobacco.

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Anheuser-Busch in the Midwest,

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they're able to adopt
refrigerated carts.

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They can send their
products to Los Angeles,

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to Texas, to New York.

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You can have somebody
smoking a cigarette

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that has tobacco that was
cultivated in the south.

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You could be in a town
that has no distillery,

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and you could get your hands
on a bottle of Jack Daniel's.

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Americans sucked
down almost 24 gallons of beer

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each year, more than
double the amount

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of just a few years before,

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and Adolphus Busch's
signature Budweiser

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sells more than a
million bottles a year.

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These innovators,
people like a Henry Ford,

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a Adolphus Busch, a Bill
Gates and a Elon Musk,

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all are gamblers.

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And they're willing to
gamble on their own ability,

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their own vision.

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Busch took that ambition

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and was able to
succeed at wild levels.

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This one.

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Now, Busch
is trying to groom

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his eventual successor,
his son, August.

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This is you.

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Sit,

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watch,

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learn.

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August had grown
up in the brewery,

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but he simply did not want
anything to do with it.

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And just not
particularly interested

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in having somebody else,
especially his father,

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tell him what to
do all the time.

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He was used to doing
whatever he wanted.

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Instead
of learning the ropes,

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August spent years

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running a failing
cattle ranch in Montana.

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Before being
forced back by his dad.

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I'm here.

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You look ridiculous.

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Take that off.

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Sit down.

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Now,
he's second in command

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at the biggest beer
company in the country.

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When August came back
from being a cowboy,

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and he came back to St. Louis

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and rather grudgingly settled in

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at the brewery with his father.

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The timing
couldn't be worse.

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The biggest obstacle
Anheuser-Busch has ever faced

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is quickly gaining power.

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Who's Carrie Nation?

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Ugh.

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A problem.

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Nicknamed
a bulldog for Jesus,

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Carrie Nation is
the radical face

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of the temperance movement.

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And she spread her
anti-vice rhetoric

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from a small church in Kansas,
all across the Midwest.

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Carrie Nation
or Hatchet Granny,

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was part of the women's
Christian temperance movement.

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Carrie Nation looked like
your grandmother or your aunt.

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She was this small woman,
but she was fierce.

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And she was famous or infamous

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for going to saloons in
Kansas and chopping 'em up.

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She has a way that she
goes about her business.

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Serious woman.

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And goes out and attacks.

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I mean, you have
to think about it,

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you had to be pretty committed
to your work to do that.

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You could think
of American history

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as being this long
kind of struggle

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between forces of modernization

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and forces towards, what
we would think of today,

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as like traditional
family values.

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But they really
take an intense form

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around the turn of
the 20th century

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because society was
changing so rapidly.

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Nation's been
arrested more than 30 times.

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And her 20 year crusade

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is grabbing headlines
across the country.

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Now, after years of
targeting liquor,

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the movement is coming
for brewers as well.

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They want to go after
the distillers, fine.

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But there's a difference
between whiskey and beer.

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So why don't you say that?

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Liquor's the problem, not beer.

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To
fight Carrie Nation,

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Adolphus Busch spends
$100,000, 2.6 million today,

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to advertise beer as a
healthy alternative to liquor.

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♪ Dangerous, in control ♪

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♪ I'm cuffing it, I know ♪

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Busch systematically
and intentionally

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set out to distinguish
the beer industry and beer

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as a very different
product than hard liquor.

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♪ Here I go ♪

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The ads pitch beer
as a beverage of moderation,

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focusing on its
lower alcohol content

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and nutritional benefits.

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Anheuser-Busch's ads,

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there was always
like a family scene.

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Everybody is sitting
there drinking Budweiser.

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If that was gin,

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like this scene wouldn't
look quite the same.

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At least it wasn't whiskey.

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It wasn't vodka.

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It was wholesome for
wholesome Americans.

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Busch's campaign

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is a direct assault
on distillers.

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As prohibition fever
became more intense,

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the brewers just
aggressively pushed the idea

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that they're not distillers,

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which, no surprise, was
infuriating to the distillers.

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Including the
most famous whiskey brand

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in the country, Jack Daniel's.

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Anheuser-Busch
is railroading us.

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Last thing
we need right now

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is to go to war
with the brewers.

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Jack Daniel's

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sells over half a
million bottles a year,

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and his nephew, Lem Motlow,
helps run operations.

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But now, temperance is
threatening to tear it all down.

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Jack Daniel didn't marry,
didn't have any kids.

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He really didn't have anybody
to pass his legacy down to.

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Jack and Lem are
facing a growing crisis.

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They may haven't
always seen eye to eye.

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Lem sort of presented
himself to the world

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in a different way
from Jack Daniels.

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I'm a outlaw, a renegade,

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I don't follow the
rules kind of thing.

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Just inspecting the barrels.

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They are old.

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Now we say aged.

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They are in need
of replacement.

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I don't want you trying
to reinvent the wheel here.

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We'll continue this later.

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Already under attack

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from the temperance movement,

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and now from desperate
beer brewers,

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Jack and Lem need to
get on the same page

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if they're going to
weather the storm.

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Maybe consider
putting out a peach brand.

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No.

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Just hear me out.

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No, it's out of the question.

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Nothing is out of
the question.

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It's my name on the bottle.

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Slap somebody else's
name on the label.

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00:10:03,668 --> 00:10:05,085
Hell, put mine on.

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00:10:05,251 --> 00:10:07,085
Lem really wanted to
build a brandy distillery

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00:10:07,210 --> 00:10:10,335
'cause brandy was a
lower proof than whiskey.

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Jack was like, "No, no, no.

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We're just gonna do this thing

217
00:10:12,835 --> 00:10:13,751
and we're just gonna
do this thing great,

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00:10:13,876 --> 00:10:15,751
and that's what we're about."

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So long as we keep making
the best whiskey in the world,

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I suppose everything else
will work itself out.

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Just thinking about
what's best for the company.

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The product is the company.

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You know, it's not personal.

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It's just business.

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By 1903, the
growing storm of temperance

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continues to build.

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Soon, three states
have gone dry,

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and the rest of the country
begins to take notice.

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Individual states were putting
in their own prohibitions

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well before prohibition
itself actually hit.

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And sometimes it even went
down to county to county,

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Jack Daniel's, where
it's made, Lynchburg,

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00:11:01,710 --> 00:11:03,418
even today is a dry county.

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And so you could buy
at the distillery,

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but you can't buy in
the rest of the county.

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Now, reformers
are targeting tobacco

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and gambling too.

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00:11:12,335 --> 00:11:13,501
Part of the issue

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is how much pleasure
are we allowed to have

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that is acceptable to society.

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00:11:20,043 --> 00:11:23,293
Some individuals say the best
thing you can do for society

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is to eliminate these
sources of ill health.

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And other individuals
are gonna say,

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"But I'm an American
and I have my freedom.

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And if I wanna smoke,
I'm gonna smoke.

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And if I wanna drink,
I'm gonna drink."

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And there is no
easy answer to that.

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Be therefore perfect,
even as your Father,

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which is in heaven, is perfect.

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Anti-vice crusaders

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are also cracking
down on pornography,

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00:11:47,210 --> 00:11:49,960
which is transformed from
sketches and drawings

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00:11:50,085 --> 00:11:53,376
to photographs and
even moving pictures.

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00:11:53,501 --> 00:11:54,751
And thanks to their lobbying,

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00:11:54,918 --> 00:11:58,210
all forms of contraception
are virtually illegal.

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If you were caught

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00:11:59,918 --> 00:12:01,585
manufacturing and
selling condoms,

258
00:12:01,710 --> 00:12:04,043
you could be fined
or sent to prison.

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00:12:04,043 --> 00:12:05,460
So in some ways,

260
00:12:05,585 --> 00:12:08,710
buying a condom in the late
19th and early 20th century,

261
00:12:08,835 --> 00:12:14,251
would've been similar to
buying marijuana in the 1990s.

262
00:12:19,918 --> 00:12:21,376
No one knows
the consequences better

263
00:12:21,501 --> 00:12:24,668
than Julius Schmid, the
former factory worker

264
00:12:24,668 --> 00:12:26,585
who was busted selling
illegal condoms

265
00:12:26,751 --> 00:12:29,126
he made out of sausage casings.

266
00:12:29,251 --> 00:12:31,751
Schmid was bailed out
and then a month later,

267
00:12:31,918 --> 00:12:34,918
the judge gave him a fine of $50

268
00:12:35,085 --> 00:12:39,210
and seized and destroyed
the 700 condoms

269
00:12:39,335 --> 00:12:42,626
that were collected in
that September raid.

270
00:12:42,751 --> 00:12:43,793
Undeterred,

271
00:12:43,918 --> 00:12:45,626
Schmid jumps right
back into the game.

272
00:12:45,751 --> 00:12:47,376
I mean, it was kind of crazy.

273
00:12:47,460 --> 00:12:49,126
In spite of getting arrested,

274
00:12:49,251 --> 00:12:53,876
he's determined to still
fulfill the demand for condoms.

275
00:12:54,001 --> 00:12:56,251
He realizes that there's
still money to be made.

276
00:12:56,418 --> 00:12:58,043
But while
he was out of commission,

277
00:12:58,043 --> 00:13:00,626
other illicit dealers have
muscled in on his turf.

278
00:13:00,751 --> 00:13:01,626
What's going on?

279
00:13:01,751 --> 00:13:02,543
You disappeared.

280
00:13:02,710 --> 00:13:04,168
I've made other arrangements.

281
00:13:07,126 --> 00:13:09,126
Now, he's
looking for a new weapon

282
00:13:09,251 --> 00:13:10,543
to take it back.

283
00:13:10,543 --> 00:13:12,293
A lot of these early condoms

284
00:13:12,418 --> 00:13:17,460
were made out of intestines,
linen or fish skin.

285
00:13:18,085 --> 00:13:22,751
I can only imagine it
might not be as romantic.

286
00:13:23,210 --> 00:13:25,876
So Julius Schmid knows
what needs to happen.

287
00:13:26,043 --> 00:13:29,085
Schmid wants to
transform the condom entirely,

288
00:13:29,251 --> 00:13:31,126
and to do it he
looks to a technology

289
00:13:31,251 --> 00:13:33,460
used in industrial manufacturing.

290
00:13:33,585 --> 00:13:36,168
We tailor it to
your exact specifications.

291
00:13:37,251 --> 00:13:38,835
Called
vulcanized rubber.

292
00:13:40,168 --> 00:13:43,043
Pioneered by Charles
Goodyear in 1839,

293
00:13:43,168 --> 00:13:45,710
vulcanized rubber is
treated with heat and sulfur

294
00:13:45,835 --> 00:13:48,335
to make it stronger
and more elastic.

295
00:13:48,335 --> 00:13:51,418
Now it's used to make everything
from raincoats and galoshes

296
00:13:51,585 --> 00:13:55,960
to industrial gaskets and
tires, but not condoms.

297
00:13:56,085 --> 00:13:57,668
I don't believe you mentioned,

298
00:13:57,668 --> 00:13:59,376
what exactly are
you manufacturing?

299
00:14:01,710 --> 00:14:02,585
Rubber caps.

300
00:14:05,126 --> 00:14:06,501
Vulcanized rubber

301
00:14:06,626 --> 00:14:10,543
enables the rubber to be
manufactured much thinner

302
00:14:10,668 --> 00:14:12,210
and also much more elastic.

303
00:14:12,210 --> 00:14:15,501
And obviously these are two
characteristics of condoms

304
00:14:15,585 --> 00:14:17,960
that are gonna make them
much more comfortable

305
00:14:18,085 --> 00:14:20,418
and much more effective.

306
00:14:20,585 --> 00:14:21,751
Even though

307
00:14:21,876 --> 00:14:23,085
it could land him
right back in jail,

308
00:14:23,210 --> 00:14:25,876
Julius Schmid wants
to bring the condom

309
00:14:26,001 --> 00:14:27,585
into the industrial age.

310
00:14:32,710 --> 00:14:34,335
Just a few miles uptown,

311
00:14:34,335 --> 00:14:36,710
without regulation
to stand in his way,

312
00:14:36,835 --> 00:14:38,960
Buck Duke has turned
America Tobacco

313
00:14:39,085 --> 00:14:42,043
into one of the most powerful
conglomerates on the planet,

314
00:14:42,043 --> 00:14:45,251
making him the third
richest man in the world

315
00:14:45,418 --> 00:14:48,876
behind only Andrew Carnegie
and John D. Rockefeller.

316
00:14:48,960 --> 00:14:51,043
We deem the Carnegie's
and the Vanderbilt's

317
00:14:51,168 --> 00:14:53,876
and the Rockefeller's as
legitimate enterprise,

318
00:14:54,001 --> 00:14:55,960
but we have a harder
time with people

319
00:14:56,085 --> 00:14:58,585
or organizations that
are engaged in vice.

320
00:14:58,710 --> 00:15:02,210
But Buck Duke is in many
ways the same as Henry Ford

321
00:15:02,335 --> 00:15:03,376
or Carnegie,

322
00:15:03,501 --> 00:15:06,460
they are just different
sides of the same coin.

323
00:15:07,793 --> 00:15:09,043
Duke
is the biggest buyer

324
00:15:09,043 --> 00:15:11,043
of raw tobacco in the world.

325
00:15:11,168 --> 00:15:13,543
By the 20th century,
American Tobacco

326
00:15:13,543 --> 00:15:16,043
sold 90% of the tobacco products

327
00:15:16,168 --> 00:15:19,126
that were sold in
the United States.

328
00:15:19,251 --> 00:15:20,501
And he's
used his leverage

329
00:15:20,585 --> 00:15:24,376
to bully growers into
accepting rock bottom prices.

330
00:15:24,501 --> 00:15:27,168
Couple of farmers outta
Kentucky and Tennessee

331
00:15:27,168 --> 00:15:28,710
wanna renegotiate the price

332
00:15:28,835 --> 00:15:30,418
of the tobacco
leaf they sell us.

333
00:15:32,460 --> 00:15:35,293
Farmers were outraged
about the low prices

334
00:15:35,418 --> 00:15:37,710
that they were receiving
for their tobacco.

335
00:15:37,876 --> 00:15:40,168
And they blamed the
tobacco monopoly,

336
00:15:40,168 --> 00:15:42,876
which had all the
power to set low prices

337
00:15:43,001 --> 00:15:45,585
that farmers were
obliged to receive.

338
00:15:45,710 --> 00:15:47,043
Price is already set.

339
00:15:49,876 --> 00:15:51,335
They want to sell
to someone else,

340
00:15:52,710 --> 00:15:53,793
good luck to them.

341
00:15:56,001 --> 00:15:58,376
So farmers in
Tennessee and Kentucky

342
00:15:58,460 --> 00:16:00,960
form the Planters'
Protective Association,

343
00:16:01,085 --> 00:16:03,876
essentially a cooperative
marketing society.

344
00:16:03,960 --> 00:16:05,376
Farmers would come together

345
00:16:05,543 --> 00:16:07,251
and pledge to
withhold their crop

346
00:16:07,418 --> 00:16:09,710
from the marketplace
until prices rose.

347
00:16:11,126 --> 00:16:12,710
Should we make
them a counter offer?

348
00:16:20,251 --> 00:16:21,543
We're American Tobacco.

349
00:16:21,668 --> 00:16:24,376
We do not negotiate.

350
00:16:30,210 --> 00:16:32,960
As a businessman, one of
Duke's premier qualities

351
00:16:33,085 --> 00:16:36,043
was a ruthlessness
that went hand in hand

352
00:16:36,168 --> 00:16:38,418
with a disdain for
labor organizing.

353
00:16:39,585 --> 00:16:41,376
Soon,
tensions begin to rise

354
00:16:41,460 --> 00:16:43,751
along the fertile
tobacco growing portion

355
00:16:43,918 --> 00:16:44,710
of the southeast,

356
00:16:44,876 --> 00:16:47,043
known as the Black Patch.

357
00:16:47,043 --> 00:16:49,668
And in 1905, it turns violent.

358
00:16:52,585 --> 00:16:55,376
And Buck Duke doesn't know that
a vicious paramilitary group

359
00:16:55,543 --> 00:16:59,668
is about to wreak havoc and
take aim squarely at his back.

360
00:17:08,418 --> 00:17:09,876
Conglomerates
are growing to dominate

361
00:17:10,001 --> 00:17:11,543
the US economy.

362
00:17:11,668 --> 00:17:13,376
Andrew Carnegie's US steel

363
00:17:13,501 --> 00:17:16,876
is worth over $34
billion in modern money.

364
00:17:17,001 --> 00:17:19,085
John D. Rockefeller's
standard oil

365
00:17:19,251 --> 00:17:21,710
brings in nearly a
billion dollars a year.

366
00:17:21,710 --> 00:17:25,293
Buck Duke's American Tobacco
is worth over 7 1/2 billion.

367
00:17:26,335 --> 00:17:28,168
You have a couple
of successive

368
00:17:28,168 --> 00:17:29,626
presidential administrations

369
00:17:29,751 --> 00:17:31,960
that are all about
laissez faire economics.

370
00:17:32,085 --> 00:17:37,210
And the idea is if the market
is allowed to do its thing,

371
00:17:37,335 --> 00:17:39,043
that then you will be even

372
00:17:39,210 --> 00:17:40,501
a pretty strong
place economically.

373
00:17:40,585 --> 00:17:43,501
So this kind of like
anti-regulatory sentiment

374
00:17:43,626 --> 00:17:46,626
contributes to the
consolidation of great power

375
00:17:46,751 --> 00:17:47,751
in several monopolies.

376
00:17:47,918 --> 00:17:49,460
These big businessmen

377
00:17:49,585 --> 00:17:52,876
who are able to control
entire industries.

378
00:17:54,085 --> 00:17:55,793
Got a minute?

379
00:17:55,918 --> 00:17:57,043
What is it?

380
00:17:57,168 --> 00:17:58,460
There's
legislation on the books

381
00:17:58,585 --> 00:18:01,210
to fight monopolies,
but it's never enforced.

382
00:18:01,376 --> 00:18:04,168
And for years, Duke has
used his corporate power

383
00:18:04,168 --> 00:18:07,001
to bully farmers into
taking pennies on the dollar

384
00:18:07,085 --> 00:18:08,335
for their tobacco leaf.

385
00:18:09,543 --> 00:18:11,501
Tobacco farmers could
not sell their tobacco

386
00:18:11,585 --> 00:18:14,501
for a price that allowed
them to have a decent living.

387
00:18:15,668 --> 00:18:18,585
Monopolies have such
an economy of scale

388
00:18:18,710 --> 00:18:22,043
that they can really
piss off a lot of people.

389
00:18:22,168 --> 00:18:24,876
You control the market and
they have to sell to you

390
00:18:25,001 --> 00:18:28,085
at the price that you determine,
not the price they want.

391
00:18:28,210 --> 00:18:29,626
So there's gonna be problems.

392
00:18:30,918 --> 00:18:32,376
These farmers gather together

393
00:18:32,460 --> 00:18:34,126
and they agreed
amongst themselves

394
00:18:34,251 --> 00:18:36,793
that they would not
sell their tobacco

395
00:18:36,918 --> 00:18:38,085
below a certain price.

396
00:18:38,210 --> 00:18:39,335
And then they went around

397
00:18:39,460 --> 00:18:41,251
and encouraged their
neighbors to participate

398
00:18:41,376 --> 00:18:43,543
and to join this association.

399
00:18:43,710 --> 00:18:45,543
Not everybody agreed.

400
00:18:45,543 --> 00:18:47,085
In
response to Buck Duke's

401
00:18:47,210 --> 00:18:49,085
hardball buying strategy,

402
00:18:49,210 --> 00:18:52,251
by 1906, the Planters'
Protective Association

403
00:18:52,376 --> 00:18:55,918
has 30,000 members that won't
sell to American Tobacco,

404
00:18:56,043 --> 00:18:58,210
and they develop a
paramilitary wing

405
00:18:58,210 --> 00:19:01,960
called the Night Riders to
intimidate anyone who will.

406
00:19:03,418 --> 00:19:05,043
The Night Riders borrow tactics

407
00:19:05,210 --> 00:19:08,876
from a brutal terrorist
group active at the time.

408
00:19:09,001 --> 00:19:11,043
Night Riders are terrifying,

409
00:19:11,043 --> 00:19:12,835
riding their horses into town,

410
00:19:12,835 --> 00:19:14,376
setting things on fire,

411
00:19:14,460 --> 00:19:16,751
cutting communication
with the outside world,

412
00:19:16,876 --> 00:19:18,376
often in disguise.

413
00:19:18,501 --> 00:19:22,918
It's not that different
from a Ku Klux Klan.

414
00:19:23,085 --> 00:19:25,376
They would trample
on somebody's crop

415
00:19:25,501 --> 00:19:28,335
if they had sold to the
American Tobacco Company,

416
00:19:28,335 --> 00:19:30,543
or they might burn
their barn at night.

417
00:19:31,960 --> 00:19:33,376
The Protective Association

418
00:19:33,460 --> 00:19:35,043
is learning techniques
from the Klan.

419
00:19:35,043 --> 00:19:37,501
It's got code words,
the hooded garb.

420
00:19:37,585 --> 00:19:39,668
It does its work at night.

421
00:19:41,668 --> 00:19:43,876
And over time, disproportionately,

422
00:19:44,043 --> 00:19:45,043
African American farmers

423
00:19:45,210 --> 00:19:48,251
become the victim
of this vigilantism.

424
00:19:51,751 --> 00:19:53,210
The press
dubs the conflict,

425
00:19:53,210 --> 00:19:55,501
the Black Patch Tobacco Wars,

426
00:19:55,585 --> 00:19:58,418
and they dominate headlines
from coast to coast.

427
00:19:58,543 --> 00:20:00,418
Coverage includes
scathing rebukes

428
00:20:00,585 --> 00:20:03,335
of the most powerful tobacco
magnate in the world,

429
00:20:03,460 --> 00:20:06,210
Buck Duke, who
continues to buy tobacco

430
00:20:06,335 --> 00:20:08,126
outside the association,

431
00:20:08,251 --> 00:20:10,460
which some see as
provoking the violence.

432
00:20:12,210 --> 00:20:14,210
We need to issue a statement.

433
00:20:14,335 --> 00:20:15,543
It's best to stay ahead of this,

434
00:20:15,668 --> 00:20:17,876
make sure we control
the narrative.

435
00:20:18,001 --> 00:20:18,751
No.

436
00:20:20,418 --> 00:20:22,335
I don't think it was
really ever a question

437
00:20:22,335 --> 00:20:25,710
whether or not to negotiate
with the association.

438
00:20:25,876 --> 00:20:29,460
There was simply no reason to,
from a business perspective.

439
00:20:29,585 --> 00:20:31,001
Farmers were in debt.

440
00:20:31,085 --> 00:20:33,043
Farmers were desperate.

441
00:20:33,043 --> 00:20:36,043
We can't let these farmers
keep terrorizing each other.

442
00:20:41,835 --> 00:20:43,918
They want to burn
each other's farms down,

443
00:20:45,126 --> 00:20:45,876
let them.

444
00:20:49,751 --> 00:20:51,501
Just
a few miles away,

445
00:20:53,335 --> 00:20:54,626
in the Tenderloin district,

446
00:20:55,835 --> 00:20:57,793
Julius Schmid has
been hard at work,

447
00:20:57,918 --> 00:21:00,460
trying to develop a
brand new kind of condom

448
00:21:00,585 --> 00:21:02,001
made of vulcanized rubber.

449
00:21:02,085 --> 00:21:06,210
We're still mostly talking
about very old fashioned

450
00:21:06,210 --> 00:21:09,835
technology involving
sewing together

451
00:21:09,835 --> 00:21:12,001
bladder from goats or sheep.

452
00:21:12,085 --> 00:21:15,293
But then we get into
manufacturing using rubber.

453
00:21:16,710 --> 00:21:19,793
When we think about these
early used condoms, right?

454
00:21:19,918 --> 00:21:20,835
It was thick.

455
00:21:20,835 --> 00:21:22,793
It was kind of heavy.

456
00:21:22,918 --> 00:21:26,710
And one size, well, it
doesn't necessarily fit all.

457
00:21:28,418 --> 00:21:30,251
You actually had to
measure it to your penis

458
00:21:30,376 --> 00:21:32,001
and cut it to the right size

459
00:21:32,085 --> 00:21:35,710
before actually adding the
ribbons and tying it on.

460
00:21:37,210 --> 00:21:39,335
These older condoms
were reusable.

461
00:21:39,335 --> 00:21:43,335
So you would wash them and
you would let them dry out

462
00:21:43,335 --> 00:21:45,543
and reuse them,
put them in a box,

463
00:21:45,710 --> 00:21:48,543
and then you would use them
again until they disintegrated.

464
00:21:49,918 --> 00:21:51,043
At the time,

465
00:21:51,168 --> 00:21:53,418
rubber condoms are
virtually unknown.

466
00:21:53,585 --> 00:21:56,418
So instead of putting them
in plain paper packaging,

467
00:21:56,543 --> 00:22:00,001
he brands them and he uses a
symbol of power and virility

468
00:22:00,085 --> 00:22:01,543
taken from ancient Egypt.

469
00:22:03,876 --> 00:22:05,418
The Pharaoh, Ramses.

470
00:22:07,085 --> 00:22:09,876
Julius Schmid was
very clever at marketing

471
00:22:10,043 --> 00:22:11,751
and selling his condoms.

472
00:22:12,876 --> 00:22:15,876
They also had extremely
appealing graphics.

473
00:22:15,960 --> 00:22:19,710
Westerners had begun to do
archeological excavations

474
00:22:19,835 --> 00:22:23,793
in Egypt, and this had sparked
a real Egyptology craze.

475
00:22:23,918 --> 00:22:27,418
And so when Julius Schmid
created the Ramses condom,

476
00:22:27,585 --> 00:22:29,835
he was really buying
into a bigger trend.

477
00:22:31,210 --> 00:22:32,876
At the beginning
of the 19th century,

478
00:22:33,043 --> 00:22:35,626
Napoleon's forces brought
back a treasure trove

479
00:22:35,751 --> 00:22:38,835
of Egyptian relics, including
the famed Rosetta Stone.

480
00:22:38,835 --> 00:22:42,501
It unlocked translation of
ancient hieroglyphs in 1822,

481
00:22:42,585 --> 00:22:45,293
igniting a craze
called Egyptomania.

482
00:22:45,418 --> 00:22:48,168
It influenced everything,
from art to architecture,

483
00:22:48,168 --> 00:22:51,585
and interest remains high
well into the 20th century.

484
00:22:55,126 --> 00:22:58,251
When we look at the early
names for these condoms,

485
00:22:58,418 --> 00:23:01,876
they're really
projecting onto non-White

486
00:23:01,960 --> 00:23:05,376
non-Christian people,
an unbridled sexuality.

487
00:23:06,501 --> 00:23:08,626
So people are reading stories.

488
00:23:08,751 --> 00:23:11,001
They're seeing
burlesque sketches

489
00:23:11,126 --> 00:23:14,418
and early films in which
people are wearing turbines

490
00:23:14,543 --> 00:23:18,918
and there's harems, and
basically this idea of orgies,

491
00:23:19,043 --> 00:23:20,543
and all this kind of fun.

492
00:23:21,668 --> 00:23:23,585
Branding and
marketing is critical

493
00:23:23,710 --> 00:23:27,043
because when that consumer
thinks about your business,

494
00:23:27,168 --> 00:23:29,001
you wanna have one thought
coming to their mind.

495
00:23:29,085 --> 00:23:32,376
So for example, Apple computers,
it's about innovation.

496
00:23:32,501 --> 00:23:34,668
For UPS, it's about
being on time.

497
00:23:34,793 --> 00:23:36,418
You gotta have that one thing

498
00:23:36,543 --> 00:23:38,043
that consumers will
remember you by

499
00:23:38,043 --> 00:23:40,376
in a very crowded market.

500
00:23:40,460 --> 00:23:42,126
To avoid
being busted again,

501
00:23:42,251 --> 00:23:45,126
rather than selling his Ramses
condoms out of his apartment,

502
00:23:45,251 --> 00:23:46,751
Schmid decentralizes,

503
00:23:46,876 --> 00:23:49,043
selling them out of a
network of apartments,

504
00:23:49,043 --> 00:23:52,210
hotel rooms and back
alleys, all over the city.

505
00:23:53,543 --> 00:23:55,710
Julius Schmid
saw an opportunity

506
00:23:55,710 --> 00:23:57,960
and he took advantage
of the opportunity.

507
00:23:59,418 --> 00:24:01,710
His condoms tended to
be even more reliable.

508
00:24:01,710 --> 00:24:03,543
So if you were looking
to buy a good condom,

509
00:24:03,710 --> 00:24:05,626
you bought one of his products.

510
00:24:05,751 --> 00:24:07,668
He came to the United
States from Germany

511
00:24:07,668 --> 00:24:08,876
and like many immigrants,

512
00:24:09,043 --> 00:24:11,210
he built a business
from the ground up

513
00:24:11,335 --> 00:24:13,585
and he was an incredible
success story,

514
00:24:13,751 --> 00:24:15,876
an innovator and
an entrepreneur.

515
00:24:17,251 --> 00:24:20,460
Soon, Schmid is
selling nearly 100,000 condoms

516
00:24:20,585 --> 00:24:23,460
a day, but still
working outside the law,

517
00:24:23,585 --> 00:24:27,210
there's no way he
can expand for now.

518
00:24:32,876 --> 00:24:34,876
Condoms have been
illegal for decades.

519
00:24:35,001 --> 00:24:37,376
Now booze seems
headed that way too.

520
00:24:37,460 --> 00:24:40,418
And Jack Daniel's brash
nephew, Lem Motlow,

521
00:24:40,585 --> 00:24:42,793
wants to implement a
risky new strategy.

522
00:24:42,918 --> 00:24:47,668
Currently our warehouses
are stocked at 65%.

523
00:24:47,668 --> 00:24:50,376
Now I wanna get that to
95% by the end of the year.

524
00:24:50,501 --> 00:24:51,585
Most distillers didn't think,

525
00:24:51,751 --> 00:24:52,876
well, the temperance movement,

526
00:24:53,001 --> 00:24:54,710
if it was actually
going to stick.

527
00:24:54,835 --> 00:24:58,585
Lem Motlow saw it coming, and
so he ramped up production.

528
00:24:58,751 --> 00:24:59,918
But we're already producing

529
00:25:00,085 --> 00:25:02,543
as much as this
distillery can handle.

530
00:25:02,668 --> 00:25:03,918
Which is why I
started next week,

531
00:25:04,085 --> 00:25:07,376
we'll begin diluting
the mixture by 5%.

532
00:25:09,501 --> 00:25:11,043
Customer won't know
the difference.

533
00:25:11,043 --> 00:25:14,501
But the quality of the
production started to suffer.

534
00:25:14,585 --> 00:25:16,960
Did you run that
by your uncle?

535
00:25:17,085 --> 00:25:19,543
Lem was a little
less brand protective.

536
00:25:19,668 --> 00:25:22,626
Lem was more, "How do we make
money off of distilling?"

537
00:25:22,751 --> 00:25:24,043
And Jack Daniel was more,

538
00:25:24,168 --> 00:25:26,418
"How do we make the best
whiskey that money can make?"

539
00:25:26,543 --> 00:25:29,751
My uncle put me in charge.

540
00:25:31,043 --> 00:25:32,876
From here on in, y'all
report directly to me,

541
00:25:33,001 --> 00:25:35,085
and only to me.

542
00:25:38,168 --> 00:25:39,293
Uncle Jack is many things,

543
00:25:39,418 --> 00:25:40,543
but he is a man
living in the past.

544
00:25:40,710 --> 00:25:42,085
I am thinking about the future.

545
00:25:44,543 --> 00:25:48,626
From here on, our top
priority is expansion.

546
00:25:56,335 --> 00:25:57,043
Get out.

547
00:25:58,918 --> 00:25:59,668
Now.

548
00:26:02,543 --> 00:26:03,210
You too, George.

549
00:26:12,460 --> 00:26:15,251
Okay, let me make
this crystal clear.

550
00:26:16,793 --> 00:26:20,251
Quality is our top priority.

551
00:26:25,835 --> 00:26:27,126
You're excused for the day.

552
00:26:30,001 --> 00:26:30,710
Get out.

553
00:26:32,585 --> 00:26:34,001
Come on Jack, let's
be a little bit-

554
00:26:34,085 --> 00:26:37,710
Get out!

555
00:26:56,001 --> 00:26:58,210
By 1908, six states

556
00:26:58,335 --> 00:27:00,043
have banned the sale of alcohol.

557
00:27:03,876 --> 00:27:05,876
On one part it's
fear of alcohol

558
00:27:06,001 --> 00:27:07,876
as a essentially sinful thing.

559
00:27:08,001 --> 00:27:10,751
But also we are experiencing
the Industrial Revolution

560
00:27:10,876 --> 00:27:12,710
and new ways of working
are being developed.

561
00:27:12,710 --> 00:27:14,001
And some of the
biggest enthusiasts

562
00:27:14,085 --> 00:27:16,043
behind the temperance
movement are employers

563
00:27:16,210 --> 00:27:19,543
who want workers that
are showing up on time,

564
00:27:19,668 --> 00:27:20,793
and that's a whole
new concept, right?

565
00:27:20,918 --> 00:27:22,793
You don't just show
up at work at dawn.

566
00:27:22,918 --> 00:27:25,043
Now we have this thing
called the clock.

567
00:27:26,668 --> 00:27:28,210
Half the workers
don't show up on time,

568
00:27:28,210 --> 00:27:30,835
the other half sort of
trickle in by lunchtime.

569
00:27:30,835 --> 00:27:33,585
They kick off and go have
a couple beers at noon.

570
00:27:33,710 --> 00:27:36,710
And so there's a real
incentive among employers

571
00:27:36,710 --> 00:27:39,293
to promote temperance
as the something

572
00:27:39,418 --> 00:27:40,793
gonna get you into heaven,

573
00:27:40,918 --> 00:27:43,043
but it's also gonna make you
a more productive citizen

574
00:27:43,168 --> 00:27:45,085
in this new industrial economy.

575
00:27:47,251 --> 00:27:50,668
In 1909, North
Carolina goes dry too,

576
00:27:51,501 --> 00:27:53,168
then Tennessee.

577
00:27:54,751 --> 00:27:57,043
And the changes pour
fuel on another movement

578
00:27:57,043 --> 00:27:59,043
gaining steam
across the country.

579
00:28:01,376 --> 00:28:05,126
Fighting for a temperance
was kind of the first time

580
00:28:05,251 --> 00:28:08,460
that a lot of women enter
the quasi political realm

581
00:28:08,585 --> 00:28:10,710
of organizing for
a social cause.

582
00:28:13,001 --> 00:28:15,626
The argument was really
that alcohol ruins homes,

583
00:28:15,751 --> 00:28:18,335
and we women are the
guardians of the home

584
00:28:18,335 --> 00:28:20,501
and of morality and virtue,

585
00:28:20,585 --> 00:28:22,876
and so you should
give us the vote.

586
00:28:23,001 --> 00:28:24,460
Because those are
the kind of causes

587
00:28:24,585 --> 00:28:25,876
that we're gonna vote for.

588
00:28:25,960 --> 00:28:29,293
So women's suffrage is
definitely tied to temperance.

589
00:28:35,626 --> 00:28:38,168
Lem Motlow pushes
to sell as much Jack Daniel's

590
00:28:38,168 --> 00:28:41,460
as he can before any
more states go dry,

591
00:28:41,585 --> 00:28:44,043
but his uncle has
been holding him back.

592
00:28:44,168 --> 00:28:47,251
Lem, can I speak
to you a second?

593
00:28:50,293 --> 00:28:51,001
It's important.

594
00:28:55,085 --> 00:28:55,876
What?

595
00:28:57,251 --> 00:29:00,501
Then,
on October 9th, 1911.

596
00:29:01,793 --> 00:29:04,793
Your uncle passed
away last night.

597
00:29:07,418 --> 00:29:09,585
Jack
Daniel dies unexpectedly

598
00:29:09,710 --> 00:29:10,751
of blood poisoning.

599
00:29:13,168 --> 00:29:13,876
I'm sorry.

600
00:29:18,001 --> 00:29:19,293
Thanks for letting me know.

601
00:29:32,001 --> 00:29:34,043
Forged with the
help of his friend and mentor,

602
00:29:34,168 --> 00:29:36,960
Nearest Green, Jack
Daniel's legacy

603
00:29:37,085 --> 00:29:40,543
is the best selling American
whiskey in the world,

604
00:29:40,543 --> 00:29:43,876
available in over 170 countries.

605
00:29:44,001 --> 00:29:46,043
And it helped
transform distilling

606
00:29:46,168 --> 00:29:50,043
from barnyard moonshine to a
respected American tradition.

607
00:29:51,543 --> 00:29:54,418
Jack Daniel's makes things
cheaper and more available.

608
00:29:55,751 --> 00:29:57,710
You don't have to go
out to the juke joint

609
00:29:57,835 --> 00:30:00,001
or to wherever,
to get a whiskey.

610
00:30:00,085 --> 00:30:04,085
You get it in your store
and it looks legitimate,

611
00:30:04,251 --> 00:30:08,043
just as legitimate
as your tomato soup.

612
00:30:09,460 --> 00:30:11,543
Now, the
threat of prohibition

613
00:30:11,543 --> 00:30:13,293
is looming closer than ever.

614
00:30:13,418 --> 00:30:17,126
Lem Motlow is in charge, and
he's prepared to risk anything,

615
00:30:17,251 --> 00:30:19,793
including the brand's
quality and reputation,

616
00:30:19,918 --> 00:30:22,168
to cash in while he can,

617
00:30:22,168 --> 00:30:24,460
desperate to keep
the company alive.

618
00:30:32,001 --> 00:30:34,543
While anti-alcohol
further rises,

619
00:30:34,543 --> 00:30:36,043
the Black Patch Tobacco Wars

620
00:30:36,168 --> 00:30:38,710
have now dragged
on for four years.

621
00:30:42,668 --> 00:30:45,126
All right, what else we got?

622
00:30:46,585 --> 00:30:48,376
And Buck
Duke's refusal to negotiate

623
00:30:48,460 --> 00:30:51,126
has put him and his
American Tobacco empire

624
00:30:52,043 --> 00:30:53,835
under a microscope.

625
00:30:57,585 --> 00:30:58,376
Clear the room.

626
00:31:10,585 --> 00:31:12,251
What is this?

627
00:31:13,876 --> 00:31:15,001
We've been indicted

628
00:31:15,085 --> 00:31:17,293
for violation of the
Sherman Antitrust Act.

629
00:31:20,501 --> 00:31:22,710
The Sherman Act
is designed to keep companies

630
00:31:22,710 --> 00:31:25,001
from manipulating
or fixing prices.

631
00:31:25,085 --> 00:31:27,126
It was sponsored by
Senator John Sherman,

632
00:31:27,251 --> 00:31:29,210
all the way back in 1890.

633
00:31:29,335 --> 00:31:31,793
But after years of
not enforcing it,

634
00:31:31,918 --> 00:31:34,168
a new wave of
progressive politicians

635
00:31:34,168 --> 00:31:36,710
are using it to go
after monopolies.

636
00:31:36,835 --> 00:31:40,001
With the presidency
of Teddy Roosevelt,

637
00:31:40,126 --> 00:31:43,376
who saw himself as a
progressive and a trust buster,

638
00:31:43,543 --> 00:31:45,710
the federal government
began to turn its attention

639
00:31:45,876 --> 00:31:48,585
to what people saw as the abuses

640
00:31:48,710 --> 00:31:50,876
of these giant corporations.

641
00:31:51,001 --> 00:31:52,460
Monopolies come to be seen,

642
00:31:52,585 --> 00:31:55,876
particularly by progressive
and federal reformers,

643
00:31:56,001 --> 00:31:58,585
as harming consumers,
as harming workers,

644
00:31:58,751 --> 00:32:00,335
as preventing the competition

645
00:32:00,335 --> 00:32:02,626
that the American
economy would need

646
00:32:02,751 --> 00:32:05,335
to grow in a robust way

647
00:32:05,460 --> 00:32:08,126
and really to concentrate the
spoils of industrial activity

648
00:32:08,251 --> 00:32:10,168
in the hands a select few.

649
00:32:10,293 --> 00:32:11,918
The government is suing us.

650
00:32:18,460 --> 00:32:19,710
While the
government cracks down

651
00:32:19,876 --> 00:32:21,085
on American Tobacco,

652
00:32:27,835 --> 00:32:30,543
Julius Schmid dodges
anti-vice laws

653
00:32:30,668 --> 00:32:32,085
tied to the temperance movement.

654
00:32:32,210 --> 00:32:35,001
His rubber condoms are
spreading like wildfire,

655
00:32:35,085 --> 00:32:36,835
but selling them is illegal.

656
00:32:36,835 --> 00:32:38,918
And he's already
been arrested once.

657
00:32:39,043 --> 00:32:41,001
I think to be
the type of person

658
00:32:41,085 --> 00:32:43,418
to run an illegal business,

659
00:32:43,543 --> 00:32:46,210
you really have to be
driven by this belief

660
00:32:46,210 --> 00:32:50,126
that your product or
service is so needed

661
00:32:50,251 --> 00:32:54,043
or desired by a community
or a population,

662
00:32:54,168 --> 00:32:58,376
that it's worth it to run
this illegal enterprise.

663
00:32:58,543 --> 00:33:01,751
Production management
will go here, by the windows.

664
00:33:01,876 --> 00:33:03,001
Makes sense.

665
00:33:03,085 --> 00:33:04,835
Despite
keeping a low profile,

666
00:33:04,835 --> 00:33:06,960
Schmid is determined
to bring his condoms

667
00:33:07,085 --> 00:33:08,585
into the industrial age,

668
00:33:08,751 --> 00:33:11,876
with a brilliant plan
to cover his trail.

669
00:33:12,001 --> 00:33:14,543
And, as requested, the...

670
00:33:17,085 --> 00:33:19,751
specialty items

671
00:33:20,751 --> 00:33:23,710
will be produced
solely down here,

672
00:33:23,835 --> 00:33:25,668
on the basement level.

673
00:33:28,543 --> 00:33:30,876
Schmid invests
all his ill-gotten gains

674
00:33:31,043 --> 00:33:32,668
into a state-of-the-art factory

675
00:33:32,793 --> 00:33:36,585
that'll produce rubber gaskets
used to seal perfume bottles.

676
00:33:36,710 --> 00:33:39,168
Don't show these to anyone.

677
00:33:40,960 --> 00:33:41,668
Understood.

678
00:33:43,418 --> 00:33:46,210
With a secret
facility for producing condoms.

679
00:33:46,335 --> 00:33:49,293
Schmid is certainly
a great example

680
00:33:49,418 --> 00:33:53,168
of an American
entrepreneur, innovator,

681
00:33:54,293 --> 00:33:59,001
who combines this
spirit of capitalism

682
00:33:59,085 --> 00:34:01,793
with willingness
to try new things.

683
00:34:03,918 --> 00:34:05,043
Schmid
opens his factory

684
00:34:05,168 --> 00:34:06,668
in Little Falls, New Jersey,

685
00:34:08,293 --> 00:34:10,293
and begins advertising
his condoms

686
00:34:10,418 --> 00:34:12,710
as French goods and medicines.

687
00:34:15,210 --> 00:34:16,543
Someone like Julius Schmid,

688
00:34:16,543 --> 00:34:18,876
who is marketing
and selling condoms,

689
00:34:18,960 --> 00:34:22,376
he could have argued that he
was doing a public service

690
00:34:22,460 --> 00:34:25,085
for Americans by protecting
them against disease.

691
00:34:26,251 --> 00:34:28,876
When you think
about how a factory,

692
00:34:28,960 --> 00:34:34,043
employing hundreds of people,
making an illegal object,

693
00:34:34,543 --> 00:34:38,210
manages to stay out of the
courts, out of the newspapers.

694
00:34:38,376 --> 00:34:39,668
There is really only one answer

695
00:34:39,793 --> 00:34:42,751
and that's, they're
clearly very popular.

696
00:34:42,876 --> 00:34:45,043
Schmid can
now supply all the condoms

697
00:34:45,043 --> 00:34:47,335
New York City needs
10 times over,

698
00:34:49,251 --> 00:34:51,460
if he could keep
skirting the law.

699
00:35:03,668 --> 00:35:06,710
Despite his best efforts,
Adolphus Busch's attempt

700
00:35:06,710 --> 00:35:10,210
to differentiate beer
from liquor is failing.

701
00:35:10,335 --> 00:35:12,376
It was already definitely
affecting the business.

702
00:35:12,501 --> 00:35:14,001
It was affecting every brewery.

703
00:35:14,085 --> 00:35:16,210
Some breweries
were shutting down.

704
00:35:16,335 --> 00:35:17,251
I'm sorry, son.

705
00:35:19,085 --> 00:35:21,168
Temperance is not going away.

706
00:35:21,168 --> 00:35:22,210
It's inevitable.

707
00:35:26,251 --> 00:35:28,668
Come on, America
will never go dry.

708
00:35:31,335 --> 00:35:32,501
Don't be so sure.

709
00:35:37,585 --> 00:35:40,335
At a time when the life
expectancy rate was 44,

710
00:35:40,335 --> 00:35:44,543
and years of hard work
and no doubt drinking

711
00:35:44,543 --> 00:35:48,751
had taken its toll,
his health began to fail.

712
00:35:50,335 --> 00:35:53,751
11 states have
now banned the sale of alcohol

713
00:35:53,876 --> 00:35:56,960
and Anheuser-Busch is forced
to close down warehouses

714
00:35:57,085 --> 00:35:59,043
and saloons in
every one of them.

715
00:35:59,210 --> 00:36:00,168
Drink up

716
00:36:01,710 --> 00:36:02,793
while you still can.

717
00:36:05,710 --> 00:36:07,293
Prohibition
is threatening

718
00:36:07,418 --> 00:36:10,293
to bring the entire
company crashing down.

719
00:36:23,251 --> 00:36:24,501
Nearly a dozen
states have gone dry,

720
00:36:24,585 --> 00:36:27,418
with more threatening to
ban alcohol every day.

721
00:36:28,793 --> 00:36:31,460
Anti-vice crusaders are calling
for national prohibition,

722
00:36:32,793 --> 00:36:35,168
which would be a disaster
for Anheuser-Busch.

723
00:36:35,168 --> 00:36:38,126
You have to think
beyond just one person

724
00:36:38,251 --> 00:36:39,626
and the brand itself,

725
00:36:39,751 --> 00:36:43,043
these employ literally
the entire town.

726
00:36:43,168 --> 00:36:45,376
And so they were very nervous

727
00:36:45,501 --> 00:36:47,710
as to how prohibition was
going to shut that down

728
00:36:47,710 --> 00:36:50,376
because it essentially
would kill the economy

729
00:36:50,460 --> 00:36:51,918
for their communities as well.

730
00:36:52,043 --> 00:36:53,418
So great pressure.

731
00:36:53,543 --> 00:36:56,585
And I can't imagine how
stressful that might have been.

732
00:36:58,085 --> 00:37:00,876
I can't imagine being
in the shoes of someone

733
00:37:01,043 --> 00:37:05,210
who put your blood, sweat, and
tears into building a company

734
00:37:05,210 --> 00:37:08,793
and the government
changes the rules midway

735
00:37:08,918 --> 00:37:11,210
and it all might be taken away.

736
00:37:11,335 --> 00:37:14,168
That is a whole added pressure

737
00:37:14,168 --> 00:37:17,043
that most entrepreneurs, fortunately,

738
00:37:17,210 --> 00:37:18,460
don't have to deal with.

739
00:37:25,501 --> 00:37:27,626
Have you seen my father?

740
00:37:31,293 --> 00:37:32,876
What?

741
00:37:34,251 --> 00:37:35,710
What is it?
- Son,

742
00:37:35,876 --> 00:37:36,918
I'm sorry.

743
00:37:40,168 --> 00:37:40,876
He passed.

744
00:37:50,418 --> 00:37:52,876
On
October 10th, 1913,

745
00:37:53,001 --> 00:37:56,126
the man who revolutionized
the American brewing industry,

746
00:37:56,251 --> 00:37:57,543
dies of a heart attack.

747
00:38:01,293 --> 00:38:02,668
Memorials are held

748
00:38:02,668 --> 00:38:05,043
at all 36 remaining
Anheuser-Busch facilities

749
00:38:05,210 --> 00:38:06,710
across the country,

750
00:38:06,876 --> 00:38:08,668
with countless
mourners in attendance.

751
00:38:08,668 --> 00:38:13,460
How Adolphus Busch is not
spoken in the same realm

752
00:38:13,585 --> 00:38:15,460
with all of those
other business titans

753
00:38:15,585 --> 00:38:19,293
of the late 19th, early
20th century, is beyond me.

754
00:38:21,335 --> 00:38:23,751
He was employing
thousands of people

755
00:38:23,876 --> 00:38:26,710
in the city of St. Louis
and across the country.

756
00:38:26,710 --> 00:38:31,376
His payroll was huge and it
wasn't just in the brewing.

757
00:38:31,501 --> 00:38:33,793
It was in the bottling,
it was in the driving,

758
00:38:33,918 --> 00:38:36,876
it was in the design,
it was in farming.

759
00:38:36,960 --> 00:38:40,876
It was in manufacturing railroad
cars and other machinery.

760
00:38:41,043 --> 00:38:42,918
Will it be long enough
to keep the beer fresh?

761
00:38:43,085 --> 00:38:47,251
He just, across the board,
had this vertical integration

762
00:38:47,376 --> 00:38:49,585
that other giants
of the day have.

763
00:38:51,626 --> 00:38:53,585
When he
dies, Adolphus Busch

764
00:38:53,751 --> 00:38:57,710
leaves behind a personal
fortune of nearly $60 million,

765
00:38:57,710 --> 00:39:01,460
the equivalent of 1.6
billion in today's money.

766
00:39:01,585 --> 00:39:04,585
We are talking about
thousands of bottles a day.

767
00:39:04,710 --> 00:39:07,085
The reason that Adolphus
Busch probably isn't studied

768
00:39:07,210 --> 00:39:10,085
with the great captains
of industry of his day,

769
00:39:10,210 --> 00:39:11,876
like Rockefeller and Carnegie,

770
00:39:11,960 --> 00:39:14,835
is simply because of
the product he produced.

771
00:39:14,960 --> 00:39:18,626
Steel and oil themselves
are uncontroversial,

772
00:39:18,751 --> 00:39:21,043
even if some of the
business methods used

773
00:39:21,168 --> 00:39:22,918
by the tycoon's work.

774
00:39:23,043 --> 00:39:26,585
Here was a product that
had a social stigma,

775
00:39:26,710 --> 00:39:29,335
and it's probably
not an easy sell

776
00:39:29,335 --> 00:39:31,835
for the textbooks or
the teachers of the land

777
00:39:31,960 --> 00:39:35,543
to teach youngsters about
somebody who made beer

778
00:39:35,668 --> 00:39:37,960
as somebody that
they should emulate.

779
00:39:42,085 --> 00:39:44,126
August Busch
is suddenly on his own.

780
00:39:44,251 --> 00:39:46,543
And the wave of
nationwide prohibition

781
00:39:46,543 --> 00:39:48,793
is getting stronger every day.

782
00:39:48,918 --> 00:39:50,543
He took the company

783
00:39:50,668 --> 00:39:53,585
at a moment where his
father had built it up

784
00:39:53,751 --> 00:39:55,751
to one of the two largest
breweries in the world,

785
00:39:55,876 --> 00:40:00,751
and then this monster, this
barbarian at the gate shows up,

786
00:40:00,876 --> 00:40:05,376
and its August's responsibility
to try to usher the company

787
00:40:05,460 --> 00:40:08,376
through these really
treacherous waters.

788
00:40:19,001 --> 00:40:20,585
While
anti-vice crusaders

789
00:40:20,710 --> 00:40:22,751
lobby to shut down
the brewing industry,

790
00:40:22,918 --> 00:40:25,376
American Tobacco is
fighting federal regulators

791
00:40:25,543 --> 00:40:27,043
on a different front.

792
00:40:27,168 --> 00:40:31,210
Duke's monopolistic
practices culminate in a suit

793
00:40:31,210 --> 00:40:33,418
brought by the
Department of Justice,

794
00:40:33,543 --> 00:40:35,251
and American Tobacco's lawyers

795
00:40:35,376 --> 00:40:39,710
basically say that American
Tobacco Corporation is a person

796
00:40:39,835 --> 00:40:42,751
and as such, it ought to
have all of the rights

797
00:40:42,876 --> 00:40:46,960
that an individual does to
be free of state regulation.

798
00:40:55,376 --> 00:40:57,876
Buck Duke has
fought the case tooth and nail,

799
00:40:58,001 --> 00:40:59,876
all the way to
the Supreme Court.

800
00:41:14,751 --> 00:41:15,626
Just tell me.

801
00:41:19,501 --> 00:41:23,085
The Supreme Court confirmed
the American Tobacco Company

802
00:41:23,210 --> 00:41:25,710
was in violation of the
Sherman Antitrust Act

803
00:41:25,710 --> 00:41:28,001
and engaging in
restraint of trade

804
00:41:28,085 --> 00:41:30,710
and non-competitive
monopolistic behavior.

805
00:41:32,085 --> 00:41:34,043
And that meant that it
was going to be broken up

806
00:41:34,168 --> 00:41:35,960
into its constituent parts.

807
00:41:38,460 --> 00:41:40,043
That will ultimately result

808
00:41:40,168 --> 00:41:43,626
in the dissolution
of American Tobacco,

809
00:41:43,751 --> 00:41:45,918
incidentally, on
the very same day

810
00:41:46,043 --> 00:41:49,043
that Rockefeller's standard
oil monopoly is also dissolved.

811
00:41:49,210 --> 00:41:52,126
Duke is obviously quite
upset and in response,

812
00:41:52,251 --> 00:41:56,251
he basically turns his back
on the US tobacco industry.

813
00:41:57,418 --> 00:42:00,710
American Tobacco
is split into three companies,

814
00:42:00,710 --> 00:42:05,043
Liggett and Myers, Lorillard,
and R. J. Reynolds,

815
00:42:05,168 --> 00:42:07,376
which will eventually
produce Paul Malls,

816
00:42:07,460 --> 00:42:09,501
Newports and Camels.

817
00:42:09,585 --> 00:42:11,751
Duke devotes the
rest of his life

818
00:42:11,918 --> 00:42:14,751
to other ventures
and to philanthropy.

819
00:42:14,918 --> 00:42:17,960
He buys Trinity College and
endows it as Duke University.

820
00:42:18,085 --> 00:42:20,501
He also starts the
firm, Duke Energy,

821
00:42:20,585 --> 00:42:22,543
which provides
hydroelectric power

822
00:42:22,710 --> 00:42:24,626
to North Carolina and Virginia.

823
00:42:26,543 --> 00:42:27,876
For
better or worse,

824
00:42:28,001 --> 00:42:30,543
Buck Duke is the father
of the modern cigarette,

825
00:42:30,668 --> 00:42:32,543
transforming it from a novelty

826
00:42:32,543 --> 00:42:34,793
into the dominant
form of tobacco.

827
00:42:34,918 --> 00:42:38,793
And by the time of his
death on October 10th, 1925,

828
00:42:38,918 --> 00:42:41,876
he's the third richest
man on the planet.

829
00:42:42,001 --> 00:42:44,876
You can't be too sympathetic,
because when he dies,

830
00:42:44,960 --> 00:42:47,960
he is one of the wealthiest
men in the world.

831
00:42:48,085 --> 00:42:51,335
So if there's compensations
for having been broken,

832
00:42:51,460 --> 00:42:53,585
he can cry all the
way to the bank,

833
00:42:53,710 --> 00:42:55,126
as the expression goes.

834
00:43:03,251 --> 00:43:04,585
Jack Daniel's

835
00:43:04,710 --> 00:43:07,001
is one of the biggest
distilleries in the country

836
00:43:07,085 --> 00:43:10,501
and Lem Motlow's using all
its manufacturing might

837
00:43:10,585 --> 00:43:12,918
to crank out whiskey
while he still can.

838
00:43:13,085 --> 00:43:16,043
Lem Motlow saw the
temperance movement coming,

839
00:43:16,210 --> 00:43:19,376
and he didn't think it was
actually going to stick.

840
00:43:19,460 --> 00:43:21,751
There's no way the United States

841
00:43:21,876 --> 00:43:24,501
was going to cut out
that much of their budget

842
00:43:24,585 --> 00:43:26,585
by eliminating liquor sales.

843
00:43:26,751 --> 00:43:28,085
And so he ramped up production.

844
00:43:28,251 --> 00:43:32,543
He thought, "There's no way we
are going to get shut down."

845
00:43:34,460 --> 00:43:36,001
You wanted to see me.

846
00:43:36,085 --> 00:43:39,001
Days of the five-day
work week are over.

847
00:43:40,418 --> 00:43:42,626
I need you and everyone else
to work around the clock,

848
00:43:42,751 --> 00:43:44,543
at night's, weekends, whatever.

849
00:43:44,543 --> 00:43:46,293
It's a lot of overtime.

850
00:43:46,418 --> 00:43:47,376
I'll pay.

851
00:43:47,460 --> 00:43:49,460
You can take a calculated risk

852
00:43:49,585 --> 00:43:52,376
when you really
know your market.

853
00:43:52,501 --> 00:43:54,085
You need to be decisive.

854
00:43:54,210 --> 00:43:56,418
And I think the
best entrepreneurs

855
00:43:56,543 --> 00:43:58,585
really have a fire
inside of them,

856
00:43:58,751 --> 00:44:00,876
and I think that fire

857
00:44:01,001 --> 00:44:05,085
can get a person through
all the adversities

858
00:44:05,210 --> 00:44:07,543
and all the setbacks
that can happen.

859
00:44:07,543 --> 00:44:09,335
It does take a special
kind of risk taker

860
00:44:09,335 --> 00:44:10,835
because you never know

861
00:44:10,835 --> 00:44:12,918
when the government's gonna
come in to shut you down.

862
00:44:13,085 --> 00:44:14,793
Can I ask what this is about?

863
00:44:16,751 --> 00:44:17,668
Temperance.

864
00:44:19,001 --> 00:44:20,543
Prohibition, going dry,
whatever you wanna call it,

865
00:44:20,710 --> 00:44:24,626
it's coming, and when
it does, no going back.

866
00:44:24,751 --> 00:44:25,751
You need to increase production.

867
00:44:25,918 --> 00:44:27,710
Push the men as
hard as you need to.

868
00:44:27,876 --> 00:44:29,251
If they complain?

869
00:44:32,085 --> 00:44:33,876
Fire 'em.

870
00:44:33,960 --> 00:44:35,876
Even though
Carrie Nation's crusaders

871
00:44:36,001 --> 00:44:38,335
are pushing to ban
alcohol nationwide,

872
00:44:40,168 --> 00:44:44,168
Lem starts pumping out 300
gallons of Jack Daniel's a day

873
00:44:45,376 --> 00:44:47,043
and adds new brands to the line.

874
00:44:48,460 --> 00:44:51,418
Lem was always a strategic
business minded person.

875
00:44:51,585 --> 00:44:53,376
Hey, walk with purpose.

876
00:44:53,543 --> 00:44:54,710
Don't saunter.

877
00:44:54,710 --> 00:44:56,085
It was his idea
to go into brandy.

878
00:44:56,210 --> 00:44:59,376
He did release a kind of
lower tier brand of whiskey.

879
00:45:01,001 --> 00:45:02,710
Lem selling
his own name brand whiskey

880
00:45:02,876 --> 00:45:05,376
and a new peach brandy
to maximize sales

881
00:45:05,501 --> 00:45:07,543
while liquor's still legal.

882
00:45:07,543 --> 00:45:11,126
Then, on June 18th, 1914,

883
00:45:13,876 --> 00:45:17,126
a chain of events in
Europe leads to a conflict

884
00:45:17,251 --> 00:45:20,085
that'll erupt into
the First World War.

885
00:45:20,210 --> 00:45:21,168
Into that!

886
00:45:22,918 --> 00:45:24,126
Move, move.

887
00:45:26,668 --> 00:45:28,085
Go!

888
00:45:30,251 --> 00:45:31,543
Gas!

889
00:45:36,835 --> 00:45:37,710
They
don't know it yet,

890
00:45:37,710 --> 00:45:39,543
but it'll be a turning point

891
00:45:39,668 --> 00:45:42,043
for the battle
for America's soul

892
00:45:42,168 --> 00:45:46,210
and an opportunity for a
whole new empire of vice.

893
00:46:07,251 --> 00:46:09,543
After three years
of fighting in Europe,

894
00:46:09,710 --> 00:46:11,835
on April 4th, 1917,

895
00:46:11,835 --> 00:46:14,460
the United States finally
enters World War I.

896
00:46:16,585 --> 00:46:19,960
Soon, over 4 million
troops are headed overseas,

897
00:46:20,085 --> 00:46:22,376
but they're missing a
key piece of equipment.

898
00:46:22,501 --> 00:46:25,210
The irony of it all is
when you think about war,

899
00:46:25,335 --> 00:46:27,210
we wouldn't send our
troops into battle

900
00:46:27,335 --> 00:46:30,543
without armor, gear,
bulletproof vest.

901
00:46:30,668 --> 00:46:34,710
And the condom was like the
very first bulletproof vest,

902
00:46:34,710 --> 00:46:36,876
if you know what I'm saying.

903
00:46:37,001 --> 00:46:39,668
The truth is people
have always had sex,

904
00:46:39,668 --> 00:46:41,710
people will always have sex.

905
00:46:41,710 --> 00:46:44,251
The goal should have
been to provide these men

906
00:46:44,376 --> 00:46:47,376
with protection, but
there were concerns

907
00:46:47,543 --> 00:46:49,835
about the morality of young men

908
00:46:49,960 --> 00:46:52,418
engaging in sex
outside of wedlock,

909
00:46:52,543 --> 00:46:56,043
especially with women who
engaged in sex for pay,

910
00:46:56,168 --> 00:46:58,876
who might infect them with
syphilis or gonorrhea.

911
00:46:59,001 --> 00:47:01,793
And so they emphasized
the idea of abstinence

912
00:47:01,918 --> 00:47:03,835
or continent, as they called it.

913
00:47:08,001 --> 00:47:10,293
Now, Julius
Schmid sees an opportunity

914
00:47:10,418 --> 00:47:12,710
to finally sell
his revolutionary

915
00:47:12,710 --> 00:47:14,085
product above board.

916
00:47:14,210 --> 00:47:16,835
Hi, yes, is this the
office of the quartermaster?

917
00:47:18,210 --> 00:47:22,710
I manufacture a highly
specialized life-saving product

918
00:47:22,835 --> 00:47:24,918
that can protect our
troops in Europe.

919
00:47:25,043 --> 00:47:27,335
Condoms, rubber condoms.

920
00:47:29,751 --> 00:47:32,126
Yes, this is a serious inquiry.

921
00:47:32,251 --> 00:47:35,376
Americans, in the
early 20th century

922
00:47:35,501 --> 00:47:39,418
have their own cultural and
religious and moral frameworks

923
00:47:39,585 --> 00:47:41,418
for thinking about sexuality.

924
00:47:41,543 --> 00:47:45,460
So the idea that they
would supply soldiers

925
00:47:45,585 --> 00:47:47,543
with this device

926
00:47:47,543 --> 00:47:49,876
that would enable
them to have sex

927
00:47:49,960 --> 00:47:52,251
is really out of the question.

928
00:47:56,585 --> 00:47:57,543
The
US isn't willing

929
00:47:57,710 --> 00:47:59,543
to buy Schmid's illicit goods,

930
00:48:01,210 --> 00:48:04,210
but he realizes there are
over 25 other countries

931
00:48:04,210 --> 00:48:06,418
sending troops to
the battlefield.

932
00:48:10,335 --> 00:48:12,585
Want you to find out
which of those countries

933
00:48:12,751 --> 00:48:14,543
are supplying condoms
to their troops.

934
00:48:15,918 --> 00:48:18,001
The British were
engaged in this war

935
00:48:18,085 --> 00:48:20,085
for a much longer period
than the Americans.

936
00:48:20,210 --> 00:48:22,501
And so they actually
saw the impact

937
00:48:22,626 --> 00:48:24,710
that venereal disease
had on their troops,

938
00:48:24,835 --> 00:48:26,043
and the consequences

939
00:48:26,043 --> 00:48:29,251
of not providing your
troops with condoms.

940
00:48:33,626 --> 00:48:37,418
Julius Schmid was
willing to provide condoms

941
00:48:37,585 --> 00:48:41,876
to the other countrymen that
were fighting in World War I,

942
00:48:41,960 --> 00:48:45,251
and he was really able
to grow his business

943
00:48:45,418 --> 00:48:47,335
while he waited for the
United States to catch up

944
00:48:47,335 --> 00:48:49,043
with all these other countries.

945
00:48:50,376 --> 00:48:51,668
Gonorrhea and syphilis

946
00:48:51,668 --> 00:48:54,043
are the most common sexually
transmitted diseases

947
00:48:54,168 --> 00:48:55,376
in World War I.

948
00:48:55,460 --> 00:48:57,876
The first results in
a painful infection,

949
00:48:58,043 --> 00:48:59,876
but the second could be fatal.

950
00:48:59,960 --> 00:49:01,210
And while they're
both treatable,

951
00:49:01,335 --> 00:49:02,876
recovery could take weeks,

952
00:49:02,960 --> 00:49:05,543
keeping soldiers
on the sidelines.

953
00:49:05,543 --> 00:49:07,210
At any given time,

954
00:49:07,335 --> 00:49:10,043
there was about
15% of our soldiers

955
00:49:10,168 --> 00:49:11,626
who had a venereal disease.

956
00:49:11,751 --> 00:49:15,543
That's something like
18,000 men on any given day.

957
00:49:15,543 --> 00:49:17,043
Now, if you consider

958
00:49:17,043 --> 00:49:20,085
that if United States had
just embraced condoms,

959
00:49:20,251 --> 00:49:22,626
perhaps World War I could
have been over sooner

960
00:49:22,751 --> 00:49:25,335
because we would've had
more men on the battlefield.

961
00:49:26,418 --> 00:49:29,085
By 1918, more
and more American troops

962
00:49:29,210 --> 00:49:31,543
are shipping out
to the front lines,

963
00:49:31,668 --> 00:49:33,668
causing a major shift at home.

964
00:49:33,668 --> 00:49:35,210
There are suddenly
work shortages

965
00:49:35,335 --> 00:49:37,251
in major cities across the north

966
00:49:37,418 --> 00:49:40,085
and African Americans
flock to fill the void,

967
00:49:40,251 --> 00:49:42,251
touching off the
Great Migration.

968
00:49:43,460 --> 00:49:44,918
The Great Migration
is a period of time,

969
00:49:45,085 --> 00:49:48,751
really from World War I to 1970,

970
00:49:48,876 --> 00:49:50,710
in which millions
of African Americans

971
00:49:50,835 --> 00:49:54,376
are moving to northern
cities and western cities.

972
00:49:55,585 --> 00:49:58,793
The African Americans
dreams of migrating,

973
00:49:58,918 --> 00:50:02,501
going to new places, are
fueled by economic conditions.

974
00:50:03,918 --> 00:50:06,293
The situation in the south
has really deteriorated

975
00:50:06,418 --> 00:50:09,418
in the first decades
of the 20th century.

976
00:50:09,543 --> 00:50:11,376
You still got the
horrific experience

977
00:50:11,501 --> 00:50:13,085
of African Americans
or sharecropping

978
00:50:13,210 --> 00:50:14,793
and tenant farmers.

979
00:50:16,085 --> 00:50:18,460
You have the reemergence
of the second Ku Klux Klan.

980
00:50:18,585 --> 00:50:20,126
And then you've got
voter restrictions,

981
00:50:20,251 --> 00:50:21,585
which are really
tightening it down

982
00:50:21,751 --> 00:50:25,126
on the ability of African
Americans to vote in the south.

983
00:50:25,251 --> 00:50:27,793
And so African Americans are
just fed up and they leave.

984
00:50:29,293 --> 00:50:32,376
During World War I,
factories need laborers

985
00:50:32,460 --> 00:50:36,210
because during a war,
immigration slows down,

986
00:50:36,210 --> 00:50:38,168
those jobs are available
for African Americans,

987
00:50:38,293 --> 00:50:39,918
really for the first time.

988
00:50:40,085 --> 00:50:41,585
During
World War I alone,

989
00:50:41,710 --> 00:50:44,626
nearly half a million
African Americans move north

990
00:50:44,751 --> 00:50:47,751
and a million more follow
over the next decade.

991
00:50:47,876 --> 00:50:52,835
By 1920, New York's black
population will increase by 66%,

992
00:50:53,918 --> 00:50:57,418
with 200,000 people settling
in the neighborhood of Harlem.

993
00:50:58,918 --> 00:51:01,376
And in one tenement,
a recent immigrant

994
00:51:01,460 --> 00:51:04,626
from the West Indies
named Stephanie St. Clair

995
00:51:04,751 --> 00:51:06,835
is struggling to make ends meet.

996
00:51:14,501 --> 00:51:15,293
Hey, hey.

997
00:51:20,751 --> 00:51:22,710
That's it you're out.

998
00:51:22,710 --> 00:51:23,626
I paid my rent.

999
00:51:23,751 --> 00:51:24,460
Not on time.

1000
00:51:25,668 --> 00:51:28,376
Stephanie St. Clair
is born in the 1890s

1001
00:51:28,501 --> 00:51:30,960
in the French
Caribbean in Guadeloupe.

1002
00:51:31,085 --> 00:51:33,168
She makes her way
to New York City

1003
00:51:33,168 --> 00:51:36,585
with dreams of
economic stability.

1004
00:51:36,710 --> 00:51:38,168
She's really ambitious.

1005
00:51:38,293 --> 00:51:39,626
You can't do this.

1006
00:51:41,210 --> 00:51:44,460
Hey, hey, get away from that.

1007
00:51:44,585 --> 00:51:49,293
She is working as the domestic
worker or as a seamstress.

1008
00:51:49,418 --> 00:51:52,710
And this is not the type of
job that any black woman wants.

1009
00:51:52,710 --> 00:51:56,043
This is an occupation that
you can barely make rent.

1010
00:51:56,168 --> 00:51:57,876
Where am I supposed to go?

1011
00:51:58,001 --> 00:52:00,043
It's not my problem.

1012
00:52:06,876 --> 00:52:08,210
Already destitute,

1013
00:52:08,210 --> 00:52:10,501
St. Clair is now
homeless as well.

1014
00:52:13,251 --> 00:52:14,751
- All right.
- All right.

1015
00:52:14,876 --> 00:52:15,876
Next.

1016
00:52:15,960 --> 00:52:17,751
Then we get 4-5-6.

1017
00:52:17,876 --> 00:52:20,168
4-5-6, uh-huh.

1018
00:52:20,168 --> 00:52:21,960
Then you get 6-2-2.

1019
00:52:22,085 --> 00:52:24,376
6-2-2, okay.

1020
00:52:24,501 --> 00:52:26,210
She
doesn't know it yet,

1021
00:52:26,335 --> 00:52:28,710
but a game she discovers
in Central Park

1022
00:52:28,835 --> 00:52:32,126
will make her one of the
richest women in America,

1023
00:52:32,251 --> 00:52:34,335
and eventually, give
rise to an industry

1024
00:52:34,335 --> 00:52:39,043
worth $105 billion,
the state lotto system.

1025
00:52:39,168 --> 00:52:41,543
But it'll also put her
on a collision course

1026
00:52:43,085 --> 00:52:44,751
with the New York mafia.

1027
00:52:50,501 --> 00:52:52,168
It's the 1910s.

1028
00:52:53,126 --> 00:52:55,126
The Yankees have
just moved to town.

1029
00:52:55,251 --> 00:52:57,668
Motor cars compete
with horses for space.

1030
00:52:57,668 --> 00:53:00,043
It's the industrial
capital of the nation.

1031
00:53:00,210 --> 00:53:02,585
But in Harlem, there's
an underground,

1032
00:53:02,751 --> 00:53:03,835
hidden in plain sight.

1033
00:53:05,001 --> 00:53:06,043
Give me 500, will you?

1034
00:53:06,043 --> 00:53:07,376
You want 500?

1035
00:53:07,460 --> 00:53:10,085
Harlem becomes a
kind of vice zone,

1036
00:53:10,210 --> 00:53:13,376
whether it's alcohol,
prostitution, gambling.

1037
00:53:13,501 --> 00:53:15,710
Some of that is the result

1038
00:53:15,835 --> 00:53:19,501
of the practices of the
New York Police Department.

1039
00:53:19,585 --> 00:53:22,376
Sort of letting the city
know that certain things

1040
00:53:22,460 --> 00:53:23,585
will be tolerated in Harlem

1041
00:53:23,710 --> 00:53:25,460
that won't be
tolerated elsewhere.

1042
00:53:25,585 --> 00:53:27,460
And in fact, in many instances,

1043
00:53:27,585 --> 00:53:29,418
local police are
collecting bribes

1044
00:53:29,543 --> 00:53:31,751
from illegal activities
that are going in Harlem.

1045
00:53:32,918 --> 00:53:35,543
New York City was
overrun with corruption.

1046
00:53:35,668 --> 00:53:37,918
For instance, you wanted
to leave your push cart

1047
00:53:38,043 --> 00:53:39,418
on the lower east side,

1048
00:53:39,585 --> 00:53:41,418
technically only supposed to
keep it there for 15 minutes,

1049
00:53:41,543 --> 00:53:44,001
they paid a 25 cent bribe
to keep it there all day.

1050
00:53:44,126 --> 00:53:47,210
There was no overnight parking
allowed in New York City

1051
00:53:47,210 --> 00:53:50,043
because people would use
the bathroom underneath it.

1052
00:53:50,043 --> 00:53:51,876
You bribed a cop to park.

1053
00:53:52,001 --> 00:53:55,251
You bribed a cop to keep your
saloon open after midnight.

1054
00:53:55,418 --> 00:53:57,210
You bribed a cop to
look the other way

1055
00:53:57,210 --> 00:53:58,835
at the door of your brothel.

1056
00:53:58,960 --> 00:54:02,376
It's a lawless
world, fraught with danger,

1057
00:54:02,501 --> 00:54:04,001
and full of possibilities.

1058
00:54:05,376 --> 00:54:07,501
So, because
people don't have access

1059
00:54:07,585 --> 00:54:11,043
to opportunities in the
aboveground economy,

1060
00:54:11,043 --> 00:54:12,876
a lot of residents of Harlem

1061
00:54:13,001 --> 00:54:16,376
seek out economic mobility
in an underground economy,

1062
00:54:16,501 --> 00:54:19,126
doing things outside of the law.

1063
00:54:21,210 --> 00:54:22,085
How you
doing, brother?

1064
00:54:22,210 --> 00:54:24,210
Can I get a 7-1-9?

1065
00:54:24,210 --> 00:54:26,126
Okay, 7-1-9.

1066
00:54:26,251 --> 00:54:26,918
That's it?
- Yeah, that's it.

1067
00:54:27,043 --> 00:54:28,126
Okay, cool.

1068
00:54:28,251 --> 00:54:29,668
Appreciate you.

1069
00:54:29,668 --> 00:54:31,710
The heartbeat
of Harlem's illicit economy

1070
00:54:31,710 --> 00:54:35,543
is an illegal lottery game
known as a numbers racket.

1071
00:54:35,543 --> 00:54:37,585
People can play for
as little as a penny,

1072
00:54:37,710 --> 00:54:40,376
and almost everyone
in town does.

1073
00:54:40,501 --> 00:54:44,251
The game is also known
as the poor man's lottery.

1074
00:54:44,418 --> 00:54:49,793
Players selected three
digits between zero and 999.

1075
00:54:49,918 --> 00:54:51,251
The winning
three digit number

1076
00:54:51,418 --> 00:54:53,751
is selected from
each day's newspaper,

1077
00:54:53,876 --> 00:54:56,251
randomly pulled from
published interest rates,

1078
00:54:56,418 --> 00:54:58,251
stock market closing numbers,

1079
00:54:58,418 --> 00:55:00,751
even the results of horse races.

1080
00:55:00,876 --> 00:55:03,376
And the numbers racket
isn't just the lottery,

1081
00:55:03,501 --> 00:55:06,168
it's Harlem's defacto
underground bank.

1082
00:55:06,293 --> 00:55:07,168
You have it going,
all right, buddy?

1083
00:55:07,168 --> 00:55:08,543
Thanks a lot,
appreciate it.

1084
00:55:08,668 --> 00:55:10,668
It was difficult
if not impossible

1085
00:55:10,668 --> 00:55:14,376
for Black arrivals in New York
to access the banking system.

1086
00:55:14,501 --> 00:55:16,585
So if you want to
start a business,

1087
00:55:16,710 --> 00:55:19,085
it is going to be
very, very unlikely

1088
00:55:19,251 --> 00:55:20,501
that you're gonna
get a bank loan.

1089
00:55:20,585 --> 00:55:23,251
So you need to turn
to community sources

1090
00:55:23,418 --> 00:55:24,710
in order to gather up the money.

1091
00:55:24,835 --> 00:55:27,626
In some ways, this is
both the stock market

1092
00:55:27,751 --> 00:55:30,418
and the banking
system of Harlem.

1093
00:55:33,501 --> 00:55:36,210
Stephanie St.
Clair has gone from homeless

1094
00:55:36,376 --> 00:55:38,418
to a steady job at
a local numbers game

1095
00:55:38,585 --> 00:55:40,001
called a policy house.

1096
00:55:42,793 --> 00:55:45,376
I was wondering if
you might be hiring?

1097
00:55:45,501 --> 00:55:47,668
I'm a quick learner and
good with arithmetic.

1098
00:55:47,793 --> 00:55:50,501
$10, non-negotiable
if you can start today.

1099
00:55:51,835 --> 00:55:54,168
Now, she doesn't
just help run the game.

1100
00:55:54,168 --> 00:55:55,501
She also plays it.

1101
00:55:56,418 --> 00:55:57,710
How many today?

1102
00:55:57,835 --> 00:55:58,626
I'll take three.

1103
00:56:00,835 --> 00:56:03,210
And her
fortunes really change

1104
00:56:03,335 --> 00:56:05,418
when her number hits.

1105
00:56:08,626 --> 00:56:11,043
And that resulted in $1,000,

1106
00:56:11,210 --> 00:56:14,210
which is a lot of money in 1923.

1107
00:56:14,335 --> 00:56:16,043
And Stephanie, she is a dreamer,

1108
00:56:16,168 --> 00:56:20,793
she's really ambitious and
goes after what she wants.

1109
00:56:20,918 --> 00:56:23,585
For those who are
living on the margins,

1110
00:56:23,710 --> 00:56:26,793
vices are a big part of
their everyday existence,

1111
00:56:26,918 --> 00:56:30,543
and they also offer a
pathway to economic success.

1112
00:56:30,543 --> 00:56:32,668
A criminal enterprise is a way

1113
00:56:32,668 --> 00:56:36,376
that people can achieve a
part of the American dream.

1114
00:56:36,501 --> 00:56:37,376
There you go.

1115
00:56:46,335 --> 00:56:47,793
This is only half.

1116
00:56:49,168 --> 00:56:53,376
The numbers banker is also
known as the policy banker

1117
00:56:53,501 --> 00:56:55,710
or if they're really big time,

1118
00:56:55,835 --> 00:56:58,210
meaning they have a large bank,

1119
00:56:58,210 --> 00:57:00,793
lots of money,
lots of employees,

1120
00:57:00,918 --> 00:57:03,335
they're also known as
the Kings of Harlem.

1121
00:57:03,460 --> 00:57:05,876
And the banker is really
the central player

1122
00:57:06,001 --> 00:57:07,168
in the operation.

1123
00:57:07,293 --> 00:57:09,543
He is the one who
puts up the capital,

1124
00:57:09,668 --> 00:57:11,710
to establish the bank.

1125
00:57:11,835 --> 00:57:14,126
You're the fourth
one to hit today.

1126
00:57:14,251 --> 00:57:16,460
That's as much as
I can give you.

1127
00:57:16,585 --> 00:57:18,293
You can't be serious.

1128
00:57:18,418 --> 00:57:19,835
It's the best I can do.

1129
00:57:21,001 --> 00:57:22,585
They're referred
to by various names.

1130
00:57:22,710 --> 00:57:24,376
Sometimes they're
called Policy King.

1131
00:57:24,501 --> 00:57:26,710
Sometimes they're
called Numbers Barons.

1132
00:57:26,835 --> 00:57:30,043
And when they find themselves
with too large a hit,

1133
00:57:30,043 --> 00:57:32,585
they'll end up not honoring
every single winning bet

1134
00:57:32,710 --> 00:57:34,085
that has been placed with them.

1135
00:57:35,418 --> 00:57:37,460
I'm not leaving
here without my money.

1136
00:57:38,835 --> 00:57:39,585
All of it.

1137
00:57:40,710 --> 00:57:41,543
What are you gonna do?

1138
00:57:41,668 --> 00:57:42,835
Go to the cops?

1139
00:57:46,626 --> 00:57:50,001
You bribed a cop to let
your illegal numbers game go.

1140
00:57:50,085 --> 00:57:53,168
And that money was then
given to the police captain

1141
00:57:53,168 --> 00:57:54,543
who gave it to
the superintendent

1142
00:57:54,710 --> 00:57:56,793
who gave it to the
local Tammany politician

1143
00:57:56,918 --> 00:57:59,793
and it got kicked all
the way up to Boss Tweed.

1144
00:57:59,918 --> 00:58:02,543
Tammany Hall's like a
synonym for corruption.

1145
00:58:02,710 --> 00:58:05,585
And you really think I'm gonna
believe that you can't pay?

1146
00:58:08,460 --> 00:58:10,251
You can push around
the other girls here.

1147
00:58:11,835 --> 00:58:12,585
Not me.

1148
00:58:13,835 --> 00:58:17,251
She is a risk taker
and someone who is tough

1149
00:58:17,376 --> 00:58:20,043
and someone who just
won't back down.

1150
00:58:22,585 --> 00:58:24,043
I don't think you hearing me.

1151
00:58:25,293 --> 00:58:26,335
Take it or leave it.

1152
00:58:32,668 --> 00:58:34,418
The
experience lights a fire

1153
00:58:34,543 --> 00:58:36,710
in Stephanie St.
Clair and her drive

1154
00:58:36,710 --> 00:58:38,501
will someday bring
the numbers racket

1155
00:58:38,626 --> 00:58:39,751
out of the underground,

1156
00:58:39,918 --> 00:58:42,335
turn it into a
government backed game

1157
00:58:42,335 --> 00:58:45,876
that generates over
$100 billion a year.

1158
00:58:47,001 --> 00:58:50,126
But first she'll need to
take over Harlem to do it.

1159
00:58:57,085 --> 00:58:58,960
For over 18
bloody months,

1160
00:58:59,085 --> 00:59:01,793
the US has been
fighting in World War I,

1161
00:59:01,918 --> 00:59:04,043
and Julius Schmid is cashing in,

1162
00:59:04,043 --> 00:59:06,835
by supplying Allied
troops with condoms.

1163
00:59:07,793 --> 00:59:11,418
While the other Allied forces
were being provided condoms

1164
00:59:11,585 --> 00:59:13,710
to prevent sexual
transmitted diseases,

1165
00:59:13,835 --> 00:59:15,918
Americans were suffering
badly from it.

1166
00:59:16,793 --> 00:59:19,210
Then, on
November 11th, 1918,

1167
00:59:19,210 --> 00:59:21,085
the war comes to an end

1168
00:59:21,210 --> 00:59:24,710
and over 2 million veterans
return home to the US,

1169
00:59:24,710 --> 00:59:27,335
bringing new habits
they picked up overseas.

1170
00:59:29,043 --> 00:59:31,835
While he was producing those
condoms for other countries,

1171
00:59:31,960 --> 00:59:33,960
the other countrymen in that war

1172
00:59:34,085 --> 00:59:38,918
were teaching Americans about
the benefits of condoms.

1173
00:59:39,043 --> 00:59:41,126
Thanks in
large part of Julius Schmid,

1174
00:59:41,251 --> 00:59:43,543
the government is faced
with overwhelming evidence

1175
00:59:43,543 --> 00:59:44,710
of condom success,

1176
00:59:44,835 --> 00:59:48,001
preventing sexually
transmitted infections,

1177
00:59:48,085 --> 00:59:51,126
turning the tide in favor
of birth control advocates

1178
00:59:51,251 --> 00:59:52,876
like Margaret Sanger.

1179
00:59:53,001 --> 00:59:54,710
Margaret Sanger
was the first person

1180
00:59:54,835 --> 00:59:58,585
to open a birth control
clinic in the United States.

1181
00:59:58,710 --> 01:00:00,251
She really believed
birth control

1182
01:00:00,418 --> 01:00:02,251
should be the first route,

1183
01:00:02,376 --> 01:00:05,918
but the anti-vice movement
was afraid of contraception

1184
01:00:06,043 --> 01:00:08,085
because they thought
it facilitated vice.

1185
01:00:08,210 --> 01:00:11,043
They thought it would allow
more men to go to more brothels

1186
01:00:11,210 --> 01:00:12,668
with less fear of VD.

1187
01:00:12,793 --> 01:00:14,668
And she and her husband
both got hounded.

1188
01:00:14,668 --> 01:00:16,918
She was actually arrested.

1189
01:00:17,043 --> 01:00:18,585
The same
year the war ends,

1190
01:00:18,751 --> 01:00:20,626
Sanger wins a landmark decision

1191
01:00:20,751 --> 01:00:22,793
in the New York State
Court of Appeals.

1192
01:00:22,918 --> 01:00:25,876
Her clinic can now legally
distribute condoms.

1193
01:00:25,960 --> 01:00:28,710
Condoms finally become
legal with a catch.

1194
01:00:28,710 --> 01:00:32,001
Condoms are legal as a
prevention against disease,

1195
01:00:32,085 --> 01:00:34,710
but they're not legal
as a contraception.

1196
01:00:34,835 --> 01:00:37,876
Of course, that's a
tremendously vague idea.

1197
01:00:37,960 --> 01:00:40,168
You can't tell if someone
is buying the condom

1198
01:00:40,168 --> 01:00:41,710
to prevent disease

1199
01:00:41,835 --> 01:00:44,335
or they're buying the condom
as a form of contraception.

1200
01:00:44,335 --> 01:00:47,751
So there tended to be a lot
of moralistic discussions

1201
01:00:47,918 --> 01:00:50,210
about how people
use the condoms.

1202
01:00:50,335 --> 01:00:51,335
That was really up to them.

1203
01:00:53,001 --> 01:00:56,043
Soon, nearly
30 states legalized condoms

1204
01:00:56,168 --> 01:00:58,793
and Julius Schmid's
sales skyrocket,

1205
01:00:58,918 --> 01:01:01,793
generating $900,000 every year,

1206
01:01:01,918 --> 01:01:04,668
the modern day
equivalent of 15 million,

1207
01:01:05,585 --> 01:01:07,043
Schmid's decades of work,

1208
01:01:07,043 --> 01:01:09,835
bringing condoms out of the
shadows and into the light.

1209
01:01:09,835 --> 01:01:13,960
In the 1920s, the US
birth rate drops by half,

1210
01:01:14,085 --> 01:01:16,960
preventing countless
unwanted pregnancies,

1211
01:01:17,085 --> 01:01:20,001
saving thousands
of lives each year

1212
01:01:20,085 --> 01:01:23,251
and earning him the nickname,
the King of Condoms.

1213
01:01:23,418 --> 01:01:26,668
♪ It's the time of our life ♪

1214
01:01:26,793 --> 01:01:29,376
When you really
think about condoms today,

1215
01:01:29,501 --> 01:01:31,876
this man played a huge role

1216
01:01:32,001 --> 01:01:36,626
in helping the United States
as a society, as a nation,

1217
01:01:36,751 --> 01:01:38,793
understand the importance.

1218
01:01:39,876 --> 01:01:42,710
Condoms have created
an opportunity

1219
01:01:42,835 --> 01:01:44,168
for people to make choices

1220
01:01:44,168 --> 01:01:46,251
about their bodies
and their health.

1221
01:01:48,626 --> 01:01:50,835
I think that the condom

1222
01:01:50,835 --> 01:01:54,835
is actually a symbol
of freedom in America.

1223
01:01:56,001 --> 01:01:57,751
Schmid's
success propels condoms

1224
01:01:57,876 --> 01:02:01,210
to full nationwide
legalization in 1965.

1225
01:02:02,585 --> 01:02:06,168
His business is eventually
purchased by the Durex company.

1226
01:02:06,168 --> 01:02:08,793
And today the products
he helped pioneer,

1227
01:02:08,918 --> 01:02:11,376
are part of a $10
billion industry.

1228
01:02:15,210 --> 01:02:17,793
While contraception is
becoming more accepted,

1229
01:02:17,918 --> 01:02:20,960
the calls to ban alcohol
are reaching a fever pitch.

1230
01:02:22,835 --> 01:02:25,001
Now the temperance
movement saw an opportunity

1231
01:02:25,085 --> 01:02:28,293
during World War I to
basically make sure

1232
01:02:28,418 --> 01:02:30,501
they not only delivered
their message,

1233
01:02:30,585 --> 01:02:31,876
but now their message
was wrapped

1234
01:02:32,043 --> 01:02:34,668
in a giant American flag.

1235
01:02:34,668 --> 01:02:37,668
Anti-German sentiment,
during World War I

1236
01:02:37,793 --> 01:02:40,793
is converging with this
prohibition sentiment

1237
01:02:40,918 --> 01:02:44,585
because as Germans are
seen as kind of nefarious

1238
01:02:44,710 --> 01:02:48,043
and scary and
anti-American, well,

1239
01:02:48,043 --> 01:02:51,876
they're connected in the
popular imagination to beer.

1240
01:02:51,960 --> 01:02:54,710
That provides this
basis for saying, "Well,

1241
01:02:54,835 --> 01:02:57,501
we need dry cities,
this is a German thing,

1242
01:02:57,626 --> 01:02:59,835
and we've gotta stamp that out."

1243
01:02:59,835 --> 01:03:01,876
You have the push for
constitutional limit

1244
01:03:02,001 --> 01:03:05,460
to outlaw alcohol consumption
or out sale of alcohol.

1245
01:03:06,585 --> 01:03:08,168
And it's successful.

1246
01:03:09,335 --> 01:03:11,168
And then by 1918,

1247
01:03:11,168 --> 01:03:13,543
you had the formal
passage of that amendment,

1248
01:03:13,668 --> 01:03:15,543
which becomes the Volstead Act.

1249
01:03:15,543 --> 01:03:17,085
On January 16th,

1250
01:03:17,210 --> 01:03:19,793
alcohol becomes
illegal in the US,

1251
01:03:21,251 --> 01:03:25,835
and Lem Motlow's Jack Daniel's
distillery grinds to a halt.

1252
01:03:25,835 --> 01:03:28,376
The strategy of
ramping up backfired,

1253
01:03:28,543 --> 01:03:31,543
because he had now sunk all
of his money into a product

1254
01:03:31,668 --> 01:03:33,043
he could no longer sell.

1255
01:03:33,168 --> 01:03:38,293
And so all of the capital
that they had was in danger

1256
01:03:38,418 --> 01:03:43,085
and so Jack Daniel's started
to really teeter on the edge.

1257
01:03:44,918 --> 01:03:46,793
Motlow has
spent the last few years,

1258
01:03:46,918 --> 01:03:49,460
cranking out whiskey
at a breakneck pace.

1259
01:03:49,585 --> 01:03:53,085
And he's sitting on 50,000
gallons of it in his warehouse.

1260
01:03:55,793 --> 01:03:57,043
That was kind of the moment

1261
01:03:57,043 --> 01:03:58,793
that everything sort of
crashed in around him.

1262
01:03:58,918 --> 01:04:00,501
And at that point,
he had no idea

1263
01:04:00,585 --> 01:04:02,626
how he was gonna
run his business.

1264
01:04:03,960 --> 01:04:05,543
Then,
he gets a visit

1265
01:04:05,668 --> 01:04:07,543
from an unscrupulous entrepreneur,

1266
01:04:07,543 --> 01:04:09,126
named George Remus.

1267
01:04:10,376 --> 01:04:10,918
Mr. Remus.

1268
01:04:11,043 --> 01:04:12,251
Come on in.

1269
01:04:13,751 --> 01:04:16,210
A pleasure to meet you.

1270
01:04:16,335 --> 01:04:16,918
Please.

1271
01:04:19,585 --> 01:04:22,335
There were some loopholes
in the Volstead Act

1272
01:04:22,335 --> 01:04:26,335
where you can sell whiskey
as long it was medicinal.

1273
01:04:26,460 --> 01:04:29,126
George Remus was a
lawyer and a pharmacist,

1274
01:04:29,251 --> 01:04:31,543
so he could see both
ends of the spectrum.

1275
01:04:31,543 --> 01:04:33,043
Oddly enough,

1276
01:04:33,168 --> 01:04:35,126
there were a lot more scripts
being written for whiskey

1277
01:04:35,251 --> 01:04:38,293
as medicine, after
prohibition hit.

1278
01:04:39,418 --> 01:04:42,543
So, what's your offer?

1279
01:04:42,543 --> 01:04:43,418
How much?

1280
01:04:44,960 --> 01:04:46,293
250 a gallon.

1281
01:04:47,460 --> 01:04:48,251
250?

1282
01:04:49,918 --> 01:04:50,751
You're kidding, right.

1283
01:04:50,918 --> 01:04:53,001
I can sell for five times that.

1284
01:04:53,126 --> 01:04:55,376
Well, technically you can't.

1285
01:04:59,001 --> 01:05:01,626
George said,
"Let me buy a stake

1286
01:05:01,751 --> 01:05:03,668
in your Jack Daniel's warehouse

1287
01:05:03,793 --> 01:05:06,210
and I can deliver
it as medicine."

1288
01:05:06,335 --> 01:05:08,210
I mean, the market's
not what it used to be,

1289
01:05:08,210 --> 01:05:10,001
not the medicinal market anyway.

1290
01:05:12,001 --> 01:05:14,168
And this is all above board?

1291
01:05:16,251 --> 01:05:17,668
100%.

1292
01:05:21,751 --> 01:05:22,751
The only way
this deal will work

1293
01:05:22,876 --> 01:05:24,668
is if you take the whole lot,

1294
01:05:25,960 --> 01:05:28,668
50,000 gallons, all of it.

1295
01:05:33,168 --> 01:05:35,043
I'll have the
paperwork drawn up

1296
01:05:35,168 --> 01:05:36,460
and sent to you in the morning.

1297
01:05:37,876 --> 01:05:39,210
Motlow had no choice.

1298
01:05:39,210 --> 01:05:41,210
Nobody wanted that whiskey,
going into prohibition.

1299
01:05:41,335 --> 01:05:42,960
So he did what he had to do.

1300
01:05:44,668 --> 01:05:46,376
Motlow can
legally sell his whiskey

1301
01:05:46,543 --> 01:05:49,335
to George Remus, a
licensed pharmacist,

1302
01:05:49,335 --> 01:05:53,168
but only at 50% less than
the pre-prohibition price,

1303
01:05:54,210 --> 01:05:55,960
but it's better than nothing.

1304
01:05:59,168 --> 01:06:02,501
All across the industry, other
companies aren't so lucky.

1305
01:06:05,251 --> 01:06:07,126
Clearly prohibition came

1306
01:06:07,251 --> 01:06:10,668
and that translated into the
closure of thousands of saloons

1307
01:06:10,668 --> 01:06:12,168
and the shutting down

1308
01:06:12,168 --> 01:06:14,001
of hundreds and hundreds
and hundreds of breweries.

1309
01:06:14,085 --> 01:06:16,168
You could look at a graph
of breweries in 1900

1310
01:06:16,293 --> 01:06:19,210
and the number just
goes straight down.

1311
01:06:22,293 --> 01:06:24,918
August Busch tries
to pivot away from Budweiser

1312
01:06:25,085 --> 01:06:29,710
to stay afloat, but so far
he's grasping at straws.

1313
01:06:29,835 --> 01:06:31,543
Once prohibition happened,

1314
01:06:31,543 --> 01:06:33,251
Anheuser-Busch ended
up making everything

1315
01:06:33,376 --> 01:06:35,710
from boats, to ice
cream, to soap.

1316
01:06:35,876 --> 01:06:37,626
I mean, anything to stay alive.

1317
01:06:39,210 --> 01:06:41,251
Just like Lem
Motlow's got a stockpile

1318
01:06:41,376 --> 01:06:43,251
of Jack Daniel's
in his warehouse,

1319
01:06:44,668 --> 01:06:47,418
August Busch has a
surplus of hops and barley

1320
01:06:47,585 --> 01:06:49,376
gathering dust.

1321
01:06:56,835 --> 01:06:58,835
And so I can't manufacture it.

1322
01:06:58,835 --> 01:06:59,668
I can't sell it.

1323
01:07:01,335 --> 01:07:03,626
So I'm forced to sit on a
stockpile of ingredients

1324
01:07:03,751 --> 01:07:04,543
I can't move.

1325
01:07:06,418 --> 01:07:08,251
There's gotta be
some work around.

1326
01:07:13,710 --> 01:07:14,418
But that's it.

1327
01:07:16,126 --> 01:07:18,168
What if we just sold
the ingredients?

1328
01:07:20,001 --> 01:07:20,710
It's not illegal.

1329
01:07:22,293 --> 01:07:24,168
Technically, no, it's not.

1330
01:07:27,210 --> 01:07:30,460
The constitutional amendment
simply forbids the sale

1331
01:07:30,585 --> 01:07:32,876
and manufacture of
alcoholic beverages,

1332
01:07:32,960 --> 01:07:36,376
but there was nothing
to prevent someone

1333
01:07:36,543 --> 01:07:39,751
from going to a store and
buying packets of yeast

1334
01:07:39,918 --> 01:07:45,751
or packets of malt and taking
them home and making beer.

1335
01:07:45,876 --> 01:07:47,251
What Busch was hoping was

1336
01:07:47,376 --> 01:07:49,668
that they would be able
to sell the ingredients

1337
01:07:49,668 --> 01:07:52,585
to consumers who were gonna
go home and make beer.

1338
01:07:56,293 --> 01:07:58,168
August Busch
may have figured out a way

1339
01:07:58,168 --> 01:08:00,085
to sidestep prohibition,

1340
01:08:01,751 --> 01:08:04,418
but it's a strategy that
will soon draw the interest

1341
01:08:04,585 --> 01:08:08,501
of one of the most notorious
gangsters in American history.

1342
01:08:17,418 --> 01:08:20,210
Prohibition's been
in effect for more than a year,

1343
01:08:20,210 --> 01:08:22,501
at least according to
the letter of the law.

1344
01:08:24,376 --> 01:08:26,501
You had people
drinking in their homes.

1345
01:08:26,626 --> 01:08:28,168
You had speakeasies.

1346
01:08:28,293 --> 01:08:30,335
And there was also a
lot of corruption there.

1347
01:08:30,335 --> 01:08:32,126
Cops were being paid off

1348
01:08:32,251 --> 01:08:34,835
to kind of let certain
places operate.

1349
01:08:38,335 --> 01:08:41,460
The irony is that President
Harding, who is a dry,

1350
01:08:41,585 --> 01:08:44,335
keeps this room in the
White House for his cabinet

1351
01:08:44,335 --> 01:08:45,543
that's filled with liquor

1352
01:08:45,710 --> 01:08:47,918
that he's purchasing
from a moonshiner,

1353
01:08:48,043 --> 01:08:49,293
and that's clearly illegal.

1354
01:08:49,418 --> 01:08:51,126
So he's pushing a
national policy,

1355
01:08:51,251 --> 01:08:53,043
which is enforcing prohibition,

1356
01:08:53,043 --> 01:08:55,751
and yet the reality
is that the moralism

1357
01:08:55,876 --> 01:08:59,626
that you hear political
leaders preaching from on high,

1358
01:08:59,751 --> 01:09:01,918
in no way resembles
what they were doing

1359
01:09:02,043 --> 01:09:03,918
in their private lives.

1360
01:09:04,043 --> 01:09:07,210
The government
seizes 140,000 illegal stills

1361
01:09:07,376 --> 01:09:11,043
a year, and confiscates over
a million gallons of alcohol.

1362
01:09:11,043 --> 01:09:12,710
But by the 1920s,

1363
01:09:12,710 --> 01:09:15,460
it's estimated that the
most successful bootleggers

1364
01:09:15,585 --> 01:09:19,210
are raking in over
$100 million a year,

1365
01:09:19,376 --> 01:09:22,085
the modern equivalent
of half a billion.

1366
01:09:22,251 --> 01:09:24,168
Because you've now
pushed it underground,

1367
01:09:24,293 --> 01:09:25,543
you have organized crime.

1368
01:09:26,668 --> 01:09:29,126
And you have a new
group of leaders,

1369
01:09:29,251 --> 01:09:31,251
Lucky Luciano, New York,

1370
01:09:31,418 --> 01:09:33,251
Joe Bonanno, New York,

1371
01:09:33,418 --> 01:09:35,376
Al Capone in Chicago.

1372
01:09:35,543 --> 01:09:39,085
The suspicions are that almost
half of the cops in Chicago

1373
01:09:39,251 --> 01:09:41,043
were dirty, 'cause
you have so much money

1374
01:09:41,043 --> 01:09:42,376
involved in alcohol.

1375
01:09:42,460 --> 01:09:45,543
They're involved in the
transport and the sale of,

1376
01:09:45,668 --> 01:09:48,543
and turning their blind eye to
all of this stuff happening.

1377
01:09:48,543 --> 01:09:52,543
So it's creating criminal
activity by the people

1378
01:09:52,668 --> 01:09:55,251
that are supposed to protect
us from criminal activity.

1379
01:09:59,335 --> 01:10:01,335
August Busch is
skirting the law,

1380
01:10:01,335 --> 01:10:04,168
selling brewing ingredients
instead of beer,

1381
01:10:04,168 --> 01:10:06,460
but he's barely scraping by.

1382
01:10:06,585 --> 01:10:08,418
Can I bother you for a second?

1383
01:10:08,543 --> 01:10:10,835
We had a big order come in
this morning, and I mean big,

1384
01:10:10,835 --> 01:10:13,210
That's the kind of
order we want, isn't it?

1385
01:10:14,626 --> 01:10:18,835
The order's from an
Al C. out of Chicago.

1386
01:10:18,835 --> 01:10:20,210
You follow me?

1387
01:10:20,210 --> 01:10:21,626
Al C.?

1388
01:10:23,501 --> 01:10:26,335
There are so many
stories floating around

1389
01:10:26,335 --> 01:10:29,126
about breweries who were
dealing with criminals

1390
01:10:29,251 --> 01:10:30,460
like Al Capone.

1391
01:10:31,876 --> 01:10:33,960
For me as someone who has
spend a lot of time

1392
01:10:34,085 --> 01:10:37,210
thinking about the Busch family.

1393
01:10:37,210 --> 01:10:38,710
It's hard to imagine

1394
01:10:38,710 --> 01:10:43,376
that he would've risked the
reputation of the company,

1395
01:10:43,501 --> 01:10:45,918
but it's entirely possible.

1396
01:10:48,543 --> 01:10:51,126
Some of the greatest
mobster we've ever seen

1397
01:10:51,251 --> 01:10:53,043
had brilliant
entrepreneurial minds.

1398
01:10:53,043 --> 01:10:56,210
Legal or not, when you're able
to create that much wealth

1399
01:10:56,210 --> 01:10:58,418
and make that much money,
you have to be smart.

1400
01:10:58,585 --> 01:11:00,668
Jeff Bezos found out
what people needed

1401
01:11:00,668 --> 01:11:02,251
and what they wanted,
and he came to them

1402
01:11:02,418 --> 01:11:05,543
with a solution that was
very profitable to him.

1403
01:11:05,668 --> 01:11:07,418
Al Capone was no different,
you know.

1404
01:11:07,543 --> 01:11:11,001
I mean, he was operating
illegally and breaking the law,

1405
01:11:11,085 --> 01:11:12,251
but he was seeing the world

1406
01:11:12,376 --> 01:11:14,376
through the eyes
of his customers.

1407
01:11:15,793 --> 01:11:17,751
And he was able to give them
something that they all wanted.

1408
01:11:19,710 --> 01:11:22,293
I pretend like I never
saw the order come in?

1409
01:11:23,251 --> 01:11:24,043
Fill the order.

1410
01:11:25,376 --> 01:11:27,668
Just don't mention
this to anyone.

1411
01:11:29,001 --> 01:11:30,960
You can have Al Capone
tell the American people,

1412
01:11:31,085 --> 01:11:32,335
"I'm just a businessman.

1413
01:11:32,460 --> 01:11:34,418
I give the public what
the public wants."

1414
01:11:34,543 --> 01:11:37,501
But when that comes
with corruption,

1415
01:11:37,585 --> 01:11:39,876
at it's core is this
fundamental fear

1416
01:11:40,043 --> 01:11:42,376
about the very soul of America.

1417
01:11:46,751 --> 01:11:49,543
While August
pushes the limits of the law,

1418
01:11:49,543 --> 01:11:52,126
George Remus has a deal
to sell Jack Daniel's

1419
01:11:52,251 --> 01:11:53,460
as medicinal whiskey.

1420
01:11:53,585 --> 01:11:57,376
Now, that whiskey
was being guarded

1421
01:11:57,460 --> 01:11:59,960
because you weren't allowed
to just take barrels out

1422
01:12:00,085 --> 01:12:00,835
and sell it.

1423
01:12:02,085 --> 01:12:04,543
Hurry up, keep it quiet.

1424
01:12:04,668 --> 01:12:07,876
George Remus, he was going
in and doing a strategy

1425
01:12:07,960 --> 01:12:11,668
that most teenagers
do when they're kids,

1426
01:12:11,668 --> 01:12:15,251
which is take some of the
whiskey, replace it with water

1427
01:12:15,418 --> 01:12:18,876
and then sell the whiskey
that he was taking out.

1428
01:12:19,043 --> 01:12:21,335
Come on, let's go, let's go.

1429
01:12:21,335 --> 01:12:23,960
Remus drains
50,000 gallons of whiskey,

1430
01:12:24,085 --> 01:12:27,376
worth the modern equivalent
of nearly 60 million bucks,

1431
01:12:27,501 --> 01:12:29,210
then fills the
barrels with water

1432
01:12:29,335 --> 01:12:31,501
so authorities won't notice.

1433
01:12:31,585 --> 01:12:34,543
Then he doubles down, stealing
his own dummy barrels,

1434
01:12:34,543 --> 01:12:36,751
and putting in insurance
claims for the losses

1435
01:12:38,418 --> 01:12:40,043
and nobody's any the wiser.

1436
01:12:41,751 --> 01:12:44,460
His illegal hooch is part of
a burgeoning prohibition era,

1437
01:12:44,585 --> 01:12:45,710
underground economy.

1438
01:12:45,835 --> 01:12:47,460
There's not just the
consumption of alcohol

1439
01:12:47,585 --> 01:12:48,710
to profit from.

1440
01:12:48,835 --> 01:12:51,251
There's like this whole
underworld of vices.

1441
01:12:51,376 --> 01:12:54,001
And so you see
connected to drinking,

1442
01:12:54,126 --> 01:12:57,210
gambling rings and different
kind of gaming houses,

1443
01:12:57,210 --> 01:13:00,043
prostitution, all
of these vices.

1444
01:13:01,793 --> 01:13:03,418
And in Harlem,

1445
01:13:04,376 --> 01:13:06,876
Stephanie St. Clair wants
her piece of the pie

1446
01:13:07,043 --> 01:13:10,376
and she's willing to make a
huge bet on herself to get it.

1447
01:13:12,418 --> 01:13:13,585
There are a lot of
women betting in the game.

1448
01:13:13,710 --> 01:13:15,043
Many, many women are working

1449
01:13:15,043 --> 01:13:17,001
as a kind of middle
management in the game,

1450
01:13:17,085 --> 01:13:20,876
but it is very rare to see a
woman who is banking the game,

1451
01:13:20,960 --> 01:13:24,668
who really rises to the top
of a numbers organization.

1452
01:13:27,585 --> 01:13:29,543
St. Clair
pours everything she earned

1453
01:13:29,543 --> 01:13:32,668
working for the policy kings
into opening her own game.

1454
01:13:33,918 --> 01:13:37,210
And she incorporates modern
technology, like phones

1455
01:13:37,210 --> 01:13:38,376
and adding machines,

1456
01:13:38,460 --> 01:13:40,960
making hers the most
efficient place in town.

1457
01:13:41,085 --> 01:13:42,501
Stephanie St. Clair,

1458
01:13:42,585 --> 01:13:44,876
who was one of the first ones
to embrace the telephone,

1459
01:13:45,001 --> 01:13:48,251
to collect customers
bets for the numbers.

1460
01:13:48,418 --> 01:13:50,543
Instead of having
a series of runners

1461
01:13:50,543 --> 01:13:52,043
go around to people's homes

1462
01:13:52,168 --> 01:13:53,960
to actually collect
their bet for the day,

1463
01:13:54,085 --> 01:13:55,251
this was much quicker.

1464
01:13:55,376 --> 01:13:57,043
And plus it had saved
her a lot of money

1465
01:13:57,168 --> 01:13:58,543
in having to employ runners.

1466
01:13:58,668 --> 01:14:01,626
The one thing that's clear
is that she is innovative.

1467
01:14:01,751 --> 01:14:04,876
She really proves herself
to be just relentless.

1468
01:14:04,960 --> 01:14:07,126
In some ways, her
numbers operations

1469
01:14:07,251 --> 01:14:08,710
reflect accounting firm.

1470
01:14:08,835 --> 01:14:11,543
There's a lot of people
tallying things up.

1471
01:14:12,918 --> 01:14:14,668
Within a year,
St. Clair's policy house

1472
01:14:14,668 --> 01:14:16,543
is raking in the
modern equivalent of

1473
01:14:16,668 --> 01:14:19,043
$4 million annually,

1474
01:14:19,210 --> 01:14:21,543
making her the first
and only,

1475
01:14:22,751 --> 01:14:25,210
policy queen, in New York.

1476
01:14:25,210 --> 01:14:28,376
She is the numbers
queen in Harlem.

1477
01:14:28,460 --> 01:14:30,626
You have a Black immigrant woman

1478
01:14:30,751 --> 01:14:33,876
who dominates a
male dominated game.

1479
01:14:34,001 --> 01:14:35,001
Like this is someone

1480
01:14:35,085 --> 01:14:37,085
who is stepping outside
of her place, right?

1481
01:14:37,210 --> 01:14:41,126
So in many ways she becomes
this local celebrity.

1482
01:14:42,501 --> 01:14:43,751
Her
fame is spreading.

1483
01:14:43,876 --> 01:14:46,376
Soon, the whole underworld
will know her name

1484
01:14:46,543 --> 01:14:48,501
for better or worse.

1485
01:14:55,251 --> 01:14:56,668
A few hundred miles away,

1486
01:14:56,668 --> 01:14:59,418
Lem Motlow has agreed to
a perfectly legal deal

1487
01:14:59,543 --> 01:15:00,751
with George Remus.

1488
01:15:01,918 --> 01:15:03,876
Exactly, that's
what I told him.

1489
01:15:07,335 --> 01:15:08,126
Let me call you back.

1490
01:15:10,668 --> 01:15:12,710
Can I help you, gentlemen?

1491
01:15:12,835 --> 01:15:14,626
We're gonna
need you to come with us.

1492
01:15:15,751 --> 01:15:16,585
What is all this about?

1493
01:15:16,751 --> 01:15:18,168
You are under arrest

1494
01:15:18,293 --> 01:15:20,668
for violating Section 37,
Article 2 of the penal code.

1495
01:15:21,501 --> 01:15:22,376
What?

1496
01:15:22,501 --> 01:15:23,668
What are you talking about?

1497
01:15:25,918 --> 01:15:28,543
The federal agents guarding
the Jack Daniel's warehouse

1498
01:15:28,668 --> 01:15:31,543
recently made a
startling discovery.

1499
01:15:33,251 --> 01:15:36,168
All the barrels are
filled with dirty water,

1500
01:15:36,168 --> 01:15:39,543
but the feds have no idea
that George Remus is to blame.

1501
01:15:40,751 --> 01:15:42,168
Shut up and walk.

1502
01:15:43,501 --> 01:15:45,876
And on June 7th, 1926,

1503
01:15:45,960 --> 01:15:49,501
Lem Motlow is charged with
violating the Volstead Act,

1504
01:15:49,626 --> 01:15:52,793
putting his legendary
uncle's legacy in jeopardy.

1505
01:15:57,085 --> 01:15:58,210
In a time when
women aren't welcome in

1506
01:15:58,210 --> 01:16:00,918
boardrooms and many
minorities are shunned,

1507
01:16:03,751 --> 01:16:06,543
thanks to her wildly
successful numbers racket,

1508
01:16:06,668 --> 01:16:08,710
Stephanie St. Clair
is one of the richest,

1509
01:16:08,835 --> 01:16:10,210
most powerful people in Harlem.

1510
01:16:13,501 --> 01:16:15,251
Let's see what you
have for me today.

1511
01:16:21,585 --> 01:16:24,543
She lived at 409
Edgecombe in Sugar Hill,

1512
01:16:24,543 --> 01:16:27,376
and this is a building
where doctors, lawyers,

1513
01:16:27,501 --> 01:16:31,668
prominent race reform leaders
like W. E. B. Du Bois lived.

1514
01:16:31,793 --> 01:16:34,876
So she definitely rubbed
shoulders with those folks.

1515
01:16:36,960 --> 01:16:38,710
Stephanie St. Clair is someone

1516
01:16:38,835 --> 01:16:41,585
who is always
dressed to the nine.

1517
01:16:41,710 --> 01:16:46,751
Fur coats, cars, property,
the latest cloche hats,

1518
01:16:46,918 --> 01:16:50,293
all of that denotes a
sign or symbol of wealth.

1519
01:16:52,501 --> 01:16:54,543
Don't tell me what they cost.

1520
01:16:54,543 --> 01:16:56,460
The really interesting
thing about St. Clair

1521
01:16:56,585 --> 01:16:58,626
is that she crafted a narrative

1522
01:16:59,918 --> 01:17:01,751
that showed her as
this kind of wealthy,

1523
01:17:01,876 --> 01:17:04,751
kind of badass business woman.

1524
01:17:04,876 --> 01:17:07,043
St.
Clair isn't just rich,

1525
01:17:07,043 --> 01:17:10,210
she's also one of the biggest
employers in the borough.

1526
01:17:10,210 --> 01:17:12,876
St. Clair's operations
are very, very large,

1527
01:17:13,001 --> 01:17:14,501
hundreds and hundreds of people.

1528
01:17:14,585 --> 01:17:16,210
People working in
the counting rooms

1529
01:17:16,210 --> 01:17:18,210
and those people are
making a decent living.

1530
01:17:18,210 --> 01:17:19,835
And there has to be
a degree of security

1531
01:17:19,960 --> 01:17:22,001
because you're handling
large amounts of cash.

1532
01:17:22,126 --> 01:17:25,168
Some people need to coordinate
political relations,

1533
01:17:25,168 --> 01:17:27,293
relations with the police.

1534
01:17:32,126 --> 01:17:32,876
You're light.

1535
01:17:35,418 --> 01:17:36,168
Excuse me.

1536
01:17:40,335 --> 01:17:41,876
Prices went up last month.

1537
01:17:42,960 --> 01:17:44,293
I didn't agree to that.

1538
01:17:45,543 --> 01:17:47,543
Greed and corruption
is everywhere.

1539
01:17:47,668 --> 01:17:48,585
It's the local government.

1540
01:17:48,751 --> 01:17:49,543
It's judges.

1541
01:17:49,543 --> 01:17:52,710
It's the police.

1542
01:17:52,835 --> 01:17:55,210
You think you can come
in here and intimidate me?

1543
01:17:59,751 --> 01:18:00,960
Here's my counter offer.

1544
01:18:01,918 --> 01:18:03,710
You can either take the money

1545
01:18:03,876 --> 01:18:06,876
I've been gracious enough
to give you every week,

1546
01:18:07,001 --> 01:18:10,751
or I could contact my
friend down at the Times

1547
01:18:10,876 --> 01:18:13,043
and tell him about your
little extortion ring.

1548
01:18:15,460 --> 01:18:18,210
Wonder if he might be
interested in a story like that?

1549
01:18:22,543 --> 01:18:24,418
Are you threatening us?

1550
01:18:24,585 --> 01:18:25,960
Don't tempt me.

1551
01:18:33,293 --> 01:18:34,710
St.
Clair hatches a plan

1552
01:18:34,835 --> 01:18:36,876
to expose police corruption

1553
01:18:36,960 --> 01:18:39,043
by naming names to the press.

1554
01:18:39,168 --> 01:18:42,043
It'll make her a hero to
the Harlem underground,

1555
01:18:42,043 --> 01:18:44,710
but put a target
squarely on her back.

1556
01:18:55,085 --> 01:18:57,543
August Busch can't make
his signature Budweiser

1557
01:18:57,668 --> 01:18:59,376
in the face of prohibition,

1558
01:18:59,501 --> 01:19:02,293
and he's barely keeping
Anheuser-Busch above water.

1559
01:19:04,085 --> 01:19:07,876
Then, on October 24th, 1929,

1560
01:19:08,001 --> 01:19:10,376
after years of unchecked growth,

1561
01:19:10,460 --> 01:19:14,876
the stock market crashes,
shedding 30 billion of value,

1562
01:19:17,251 --> 01:19:20,001
and throwing the United
States economy into chaos.

1563
01:19:20,085 --> 01:19:23,293
In the 1920s crash of
the stock market.

1564
01:19:23,418 --> 01:19:24,835
People are buying stocks

1565
01:19:24,960 --> 01:19:28,210
because they believe there's
a way to make money, stocks.

1566
01:19:28,210 --> 01:19:31,001
You don't have to work, make
your money work for you.

1567
01:19:32,168 --> 01:19:34,710
Americans have always
been interested in this.

1568
01:19:34,710 --> 01:19:36,876
And I think in the kind
of thrill of gambling,

1569
01:19:37,043 --> 01:19:38,418
the idea of quick money,

1570
01:19:38,585 --> 01:19:42,210
that there is a possibility
that you can walk out of a room

1571
01:19:42,376 --> 01:19:45,043
in a much better economic
state than you walked in.

1572
01:19:45,043 --> 01:19:49,376
Now that is not the truth
for most gamblers.

1573
01:19:49,501 --> 01:19:50,626
Within a year,

1574
01:19:50,751 --> 01:19:52,376
12 million people
are out of work

1575
01:19:52,543 --> 01:19:56,043
and 12,000 more are losing
their jobs every day,

1576
01:19:56,168 --> 01:19:58,293
20,000 companies go bankrupt,

1577
01:19:58,418 --> 01:20:01,751
but where most
entrepreneurs see disaster,

1578
01:20:01,876 --> 01:20:04,293
August Busch sees opportunity.

1579
01:20:10,960 --> 01:20:12,043
The Great Depression is
compounding the pain

1580
01:20:12,210 --> 01:20:14,960
of prohibition and
1,200 of the 1,300

1581
01:20:15,085 --> 01:20:17,335
major American breweries
have shut down.

1582
01:20:17,335 --> 01:20:20,251
But with 25% of the
workforce unemployed,

1583
01:20:20,418 --> 01:20:23,251
income tax revenue
is plummeting,

1584
01:20:23,376 --> 01:20:27,210
and August Busch sees a new
angle to save his business.

1585
01:20:27,210 --> 01:20:29,918
Anheuser-Busch is an
American institution.

1586
01:20:31,501 --> 01:20:34,251
And we pay more than $3
million in taxes every year.

1587
01:20:36,001 --> 01:20:38,876
Prohibition didn't stop
people from drinking.

1588
01:20:39,001 --> 01:20:41,251
It made them just
figure out other ways

1589
01:20:41,418 --> 01:20:42,543
to get their alcohol.

1590
01:20:42,543 --> 01:20:43,918
It wasn't regulated.

1591
01:20:44,085 --> 01:20:46,126
So the legal vendors
got penalized, right?

1592
01:20:46,251 --> 01:20:47,835
The government
doesn't get to tax it.

1593
01:20:47,960 --> 01:20:49,293
People who are drinking it

1594
01:20:49,418 --> 01:20:51,918
don't know whether it's
safe to drink or not.

1595
01:20:52,043 --> 01:20:56,126
No one's winning, right,
except for the criminals.

1596
01:21:00,293 --> 01:21:01,876
I mean, you wanna talk
about finding tax revenue

1597
01:21:01,960 --> 01:21:04,001
to pull this country
out of the depression,

1598
01:21:04,918 --> 01:21:07,543
legalize beer, regulate it,

1599
01:21:08,585 --> 01:21:10,376
tax it.

1600
01:21:10,460 --> 01:21:15,460
By 1932, the argument
being made about beer

1601
01:21:15,585 --> 01:21:18,543
was that it would be
better for the country

1602
01:21:18,543 --> 01:21:22,460
to end prohibition to
bring the tax revenue back.

1603
01:21:22,585 --> 01:21:25,001
I'm just asking you
to think about it.

1604
01:21:26,835 --> 01:21:27,668
You too.

1605
01:21:28,960 --> 01:21:31,918
I cannot stress
how much revenue

1606
01:21:32,085 --> 01:21:34,126
alcohol brings to
the Federal Treasury.

1607
01:21:34,251 --> 01:21:37,626
It is one of the most taxed
products in the United States.

1608
01:21:37,751 --> 01:21:38,460
When you're drinking
a bottle of beer,

1609
01:21:38,585 --> 01:21:40,543
you're drinking a lot of taxes.

1610
01:21:43,043 --> 01:21:44,210
Busch
publishes a pamphlet

1611
01:21:44,210 --> 01:21:46,876
called "An Open Letter
to the American People,"

1612
01:21:46,960 --> 01:21:49,001
claiming that repealing
the 18th Amendment

1613
01:21:49,085 --> 01:21:52,293
would bring back 1.2
million jobs overnight.

1614
01:21:53,751 --> 01:21:55,751
Even people who had originally

1615
01:21:55,876 --> 01:21:58,376
funded the prohibition movement,

1616
01:21:58,501 --> 01:22:00,376
like the DuPont Brothers

1617
01:22:00,460 --> 01:22:04,001
and officials with big
motor companies in Detroit,

1618
01:22:04,085 --> 01:22:05,835
were joining organizations

1619
01:22:05,835 --> 01:22:07,543
that were lobbying to repeal

1620
01:22:07,668 --> 01:22:12,168
because it had just become
clear that it wasn't working.

1621
01:22:12,168 --> 01:22:13,960
It's also worth noting

1622
01:22:14,085 --> 01:22:17,251
a point that I think most
Americans don't realize,

1623
01:22:17,376 --> 01:22:21,251
the prohibition amendment was
never voted on by the voters.

1624
01:22:21,376 --> 01:22:23,168
All
Busch could do now,

1625
01:22:23,168 --> 01:22:25,460
is hope his tactic works.

1626
01:22:33,501 --> 01:22:35,043
The man who runs the
Jack Daniel's distillery,

1627
01:22:35,210 --> 01:22:39,418
Lem Motlow, has more to worry
about than just prohibition.

1628
01:22:39,543 --> 01:22:42,376
After being arrested for
violating the Volstead Act,

1629
01:22:42,501 --> 01:22:43,585
he's beaten the rap.

1630
01:22:45,001 --> 01:22:48,085
When George Remus was
taken to federal court

1631
01:22:48,210 --> 01:22:50,543
to answer for all the
bootlegging that he did,

1632
01:22:50,543 --> 01:22:52,876
he didn't name Lem.

1633
01:22:53,001 --> 01:22:54,251
But
soon finds himself

1634
01:22:54,376 --> 01:22:57,168
right back in the
middle of a court case.

1635
01:22:57,168 --> 01:22:59,001
Lem ended up
getting in trouble

1636
01:22:59,126 --> 01:23:01,960
for shooting a
conductor on a train.

1637
01:23:02,085 --> 01:23:03,960
So there was a Black conductor

1638
01:23:04,085 --> 01:23:05,668
saying, "Where is your tickets?"

1639
01:23:05,668 --> 01:23:08,376
Lem didn't feel that he needed
to answer that question,

1640
01:23:08,501 --> 01:23:11,126
so another conductor came in
and asked the question again.

1641
01:23:11,251 --> 01:23:12,751
This time he was
a White conductor

1642
01:23:12,876 --> 01:23:14,626
and Lem pulled a weapon

1643
01:23:14,751 --> 01:23:17,251
and ended up shooting
the White conductor.

1644
01:23:17,418 --> 01:23:22,043
♪ If you lock, a
dragon in a cage ♪

1645
01:23:22,043 --> 01:23:26,668
♪ He'll do anything
he needs to get away ♪

1646
01:23:28,085 --> 01:23:29,001
The
fate of Lem Motlow

1647
01:23:29,085 --> 01:23:30,793
is now in the courts hands.

1648
01:23:41,543 --> 01:23:42,543
Stephanie St. Clair

1649
01:23:42,668 --> 01:23:45,501
blasted corrupt New
York cops in the press.

1650
01:23:45,626 --> 01:23:49,585
Because St. Clair was really
challenging police power

1651
01:23:49,710 --> 01:23:53,043
and authority, the cops
had it out for her.

1652
01:23:53,210 --> 01:23:55,376
But despite
her public fight,

1653
01:23:55,501 --> 01:23:57,918
she still relies on police
looking the other way

1654
01:23:58,043 --> 01:23:59,585
to keep her business going.

1655
01:24:00,835 --> 01:24:01,668
Excuse me, ma'am.

1656
01:24:03,710 --> 01:24:05,168
I believe you dropped these.

1657
01:24:07,043 --> 01:24:09,585
My, my, my, what
do we have here?

1658
01:24:12,293 --> 01:24:13,376
What is this?

1659
01:24:13,501 --> 01:24:15,001
Stephanie St. Clair,
you're under arrest

1660
01:24:15,085 --> 01:24:17,168
for the possession
of number slips.

1661
01:24:17,168 --> 01:24:18,460
Are
you kidding me?

1662
01:24:20,793 --> 01:24:23,043
Despite having the
cops on their payroll,

1663
01:24:23,168 --> 01:24:26,835
Stephanie St. Clair is
arrested in December of 1929.

1664
01:24:28,168 --> 01:24:29,751
You'll never get
away with this.

1665
01:24:31,085 --> 01:24:33,376
Who do you think a
judge is gonna believe?

1666
01:24:33,501 --> 01:24:38,501
Several cops claimed
that she has number slips.

1667
01:24:38,918 --> 01:24:40,418
I promise you'll regret this.

1668
01:24:40,543 --> 01:24:43,251
There was other people
who saw what happened,

1669
01:24:43,376 --> 01:24:47,168
who said that they didn't
see any number slips.

1670
01:24:48,043 --> 01:24:49,460
I never break my word.

1671
01:24:49,585 --> 01:24:50,876
Let's go.

1672
01:24:53,043 --> 01:24:54,460
Stephanie
St. Clair's arrest

1673
01:24:54,585 --> 01:24:57,710
is meant to discredit her and
reestablish police authority,

1674
01:24:57,835 --> 01:25:01,168
but instead of bringing
the numbers racket in line,

1675
01:25:01,168 --> 01:25:03,710
it'll touch off a
violent gang war

1676
01:25:03,710 --> 01:25:06,751
with the most dangerous
mobsters in New York.

1677
01:25:10,335 --> 01:25:11,501
I can work with that.

1678
01:25:12,793 --> 01:25:13,960
Looks like-

1679
01:25:14,085 --> 01:25:16,293
They promised more next week.

1680
01:25:16,418 --> 01:25:17,960
The battle
for the nation's soul

1681
01:25:18,085 --> 01:25:19,001
isn't over yet.

1682
01:25:19,085 --> 01:25:20,418
Legalize beer.

1683
01:25:20,585 --> 01:25:24,210
And a new era
in American vice begins.

1684
01:25:25,918 --> 01:25:26,960
Deal me in.

1685
01:25:27,085 --> 01:25:27,793
You're over the limit.

1686
01:25:27,918 --> 01:25:28,918
I said, deal me in!

1687
01:25:29,085 --> 01:25:30,251
Excuse me.

1688
01:25:30,376 --> 01:25:32,001
A new
kind of magazine.

1689
01:25:32,085 --> 01:25:33,043
Full nudes.

1690
01:25:33,168 --> 01:25:34,293
Have you lost your mind?

1691
01:25:34,418 --> 01:25:36,251
Completely
changes the game.

1692
01:25:37,251 --> 01:25:38,126
I'll pay cash.

1693
01:25:40,168 --> 01:25:42,376
A new battle
for tobacco supremacy.

1694
01:25:42,501 --> 01:25:43,418
What the hell
is smoker's cough?

1695
01:25:43,543 --> 01:25:45,418
A public relations nightmare.

1696
01:25:45,543 --> 01:25:47,710
Gives rise
to an American icon.

1697
01:25:47,876 --> 01:25:50,668
We call him the Marlboro man.

1698
01:25:52,126 --> 01:25:53,543
You gotta do
what's best for you.

1699
01:25:53,543 --> 01:25:56,043
The future
of the state lotto system.

1700
01:25:56,168 --> 01:25:57,960
Shot in the head,
left out in the street.

1701
01:25:58,085 --> 01:25:59,043
Ends
up in the hands

1702
01:25:59,043 --> 01:26:01,335
of a notorious New York mobster.

1703
01:26:01,335 --> 01:26:02,751
We're gonna shut 'em down.

1704
01:26:02,876 --> 01:26:05,168
And it all
leads to a desert town

1705
01:26:05,293 --> 01:26:06,793
in the middle of nowhere.

1706
01:26:06,918 --> 01:26:08,043
Las Vegas.

1707
01:26:08,043 --> 01:26:08,835
What does that even mean?

1708
01:26:08,960 --> 01:26:09,710
No idea.

1709
01:26:11,085 --> 01:26:12,251
That
will become known

1710
01:26:13,251 --> 01:26:14,501
as Sin City.

1711
01:26:14,585 --> 01:26:16,043
It's gonna be spectacular.