Nihil Obstat

Ed Murphy: Gay Blackmailer and Activist – Chapter 4 – Secret Lives: J. Edgar Hoover and Roy Cohn

Ed Murphy told me: “J. Edgar Hoover is one of my sisters.”

In 1983, I was shocked to hear Ed insinuate that the late FBI director was gay and liked to dress in women’s clothes. Even among very gossipy gay men, I never heard a breath of rumor that the late FBI director liked guys and was also a transvestite. Similarly, in the 1980s at Dignity/NY, I learned that the ruthless society lawyer, Roy Cohn, had contracted AIDS, not cancer of the liver as he claimed. Ed may have known about Hoover from firsthand stories he heard, and likely had pictures to prove it. I’m not clear if Ed Murphy’s claims are from the time of the “Chickens and the Bulls” blackmail period, or, whether the Mafia had compromising photos of Hoover and his associate director and companion, Clyde Tollson, from years before.

Clyde Tollson and J. Edgar Hoover on vacation

In his explosive 1993 book, “Official and Confidential: The Secret Life of J. Edgar Hoover,” author Anthony Summers claimed Hoover denied the existence of the Mafia and never pursued them because the Mafia had blackmail material on him. One of the photos was said to show Hoover blowing Clyde Tollson. The knowledge of Hoover’s homosexual activities may have kept gangsters like Meyer Lansky and Frank Costello safe from FBI scrutiny.

Author David Carter wrote in his 2004 book, “Stonewall: The Riots That Sparked the Gay Revolution,” that when FBI agents joined the “Chickens and the Bulls” case, they found a photograph of J. Edgar Hoover “posing amiably” with one of the ringleaders and discovered information that Clyde Tollson was being blackmailed by the extortion ring. Both the photograph and documents disappeared after the FBI joined the investigation. David Carter thought Ed Murphy was the man posing with Hoover. Journalist and author Burton Hersh said that it was Sherman Kaminsky. It may be that Ed Murphy’s decades of work in Mafia-run gay bars, and his involvement in male prostitution and blackmail gave him access to knowledge and photos, which not only kept him safe from the Feds, but out of jail in the “Chickens and the Bulls” case.

Elwood Hammock, one of the chief extorters in the “Chickens and the Bulls” case also said that J. Edgar Hoover was homosexual as detailed in a memo dated May 19, 1966, from Special Agent in Charge (SAC) in Charlotte, N.C. to Director, FBI. The memo describes a taped telephone interview with an unnamed woman the evening of May 18, 1966. It was conducted by FBI agent Charles S. Miller of Durham, N.C.

“(BLANK) stated that on or about 4-10-66 (BLANK) ELWOOD HAMMOCK (BLANK) New York City. She recalled that ELWOOD was intoxicated at the time, and he was discussing various personalities in whom he and his confederates were interested. During the course of this conversation, he stated to her that J. EDGAR HOOVER was a homosexual. He stated also that he, ELWOOD HAMMOCK, and (BLANK) who she later learned was (BLANK) allegedly had telescopic movies or photos of a blond, blue-eyed young man who resided in either Georgetown or Bethesda, Maryland. It was not clear to (BLANK), but she gathered that this young man was guarded by two Doberman pinscher dogs, and she gathered by inference that this young man was an alleged friend of MR. HOOVER. She stated she was shocked when ELWOOD made such a fantastic allegation, and she informed him that it was utterly impossible and untrue. She stated that (BLANK) was an inveterate liar, and she placed no substance in his statement. She stated she admired the Director greatly, recognized what he had done for the country, and as she thought about the matter more, she decided to repeat ELWOOD’S conversation to a Detective (BLANK) of the New York District Attorney’s staff with whom she had been working.”

The person who had the most damaging information about J. Edgar Hoover was Susan Kaufman Rosenstiel, the 4th wife of liquor magnate Lewis S. Rosenstiel, chairman of Schenley Industries, Inc. Rosenstiel, a bisexual, was a former bootlegger who was a close associate of mobsters Meyer Lansky and Frank Costello. He was good friends with power broker attorney, Roy Cohn, and J. Edgar Hoover. He endowed the J. Edgar Hoover Foundation with $1 million in 1965. Lewis Rosenstiel’s lifelong involvement with mobsters came to light only in 1970, when the New York State Legislative Committee on Crime determined that he was part of a consortium to smuggle liquor during Prohibition.

Lewis and Susan Rosenstiel had an ugly, contentious divorce before Lewis Rosenstiel moved on to Wife #5. Rosenstiel spent almost half a million dollars trying to concoct evidence to use against his wife in divorce proceedings. He may have turned to his friend, J. Edgar Hoover, for help. At least, this is what Susan Kaufman thought, believing that the FBI director helped stack the cards against her in divorce court. In retaliation, she told anyone who would listen that Hoover was a cross-dresser and homosexual.

Meyer Lansky & Lewis Rosenstiel

During their divorce, Rosenstiel’s 4th wife, Susan Kaufman, alleged that Rosenstiel hosted orgies at the Plaza hotel where he supplied “boy prostitutes” for certain guests. Kaufman would later make the same claims under oath for the New York State Joint Legislative Committee on Crime in the early 1970s. Most of Kaufman’s testimony to the Committee was behind closed doors and remains sealed. Her claims are shocking, but both the Crime Committee Chairman, John Hughes, and his Chief Counsel, Edward McLaughlin, found them credible. McLaughlin remembered her as an excellent witness:  “I thought she was absolutely truthful. The woman’s power of recall was phenomenal. Everything she said was checked and double-checked, and everything that was checkable turned out to be true.”

Roy Cohn on vacation

Larry Summer’s book, Official and Confidential: The Secret Life of J. Edgar Hoover,” describes one night in 1958 where Susa  n Rosenstiel witnessed a sex scene with her husband, Roy Cohn, J. Edgar Hoover and two teenage boys in a suite at the Plaza Hotel in New York. Hoover was in drag, “wearing a fluffy black dress…lace stockings and high heels, and a black curly wig. He had makeup on, and false eyelashes. Roy introduced him as “Mary” …It was obvious he wasn’t a woman; you could see where he shaved.” They had some drinks, and the teenage prostitutes arrived. They went into the bedroom and “Mary” undressed, taking off his dress and pants and leaving on a garter belt. He lay on the bed, “and the boys work on him with their hands. One of them wore rubber gloves…Then Rosenstiel got into the act with the boys. I thought, “You disgusting old man.” Hoover and Cohn were watching, enjoying it.”

If what she described happened, it would be easy to imagine that Meyer Lansky and others in organized crime had blackmail photos of Hoover in a dress or getting serviced. Susan Rosenstiel quoted her husband as saying, “because of Lansky and those people, we can always get Hoover to help us.” Hoover was a blackmailer himself. “He was the biggest fuckin’ extortionist in the country,”

Ed Murphy told Arthur Bell in a 1978 interview.  “He had presidents by the balls. He had a record on everybody and his brother.”Not everybody believed Susan Kaufman’s stories. Robert M. Morgenthau, the U.S. Attorney in New York, found her claims baseless. So did famous attorney William Hundley, at that time working in the U.S. Justice Department. “Susie Rosenstiel had a total axe to grind,” Hundley said. “Somebody who worked for me talked to her. It was made up out of whole cloth. She hated Hoover for some alleged wrong he had done. Plus the story was beyond belief.”

The story does sound fantastical. How could the head of the FBI–and a notorious blackmailer himself–get himself into a position where he was held hostage? Perhaps it was a trade-off. Hoover had his secrets protected and access to male prostitutes. In return, organized crime didn’t need to worry about the FBI nosing too deeply into their operations.

Coming Tomorrow:  Chapter 5:  Stonewall Shakedowns