Terre Haute's Red Light District reopens in 1917

By Mike McCormick

February 24, 2002

Terre Haute's Red Light District in 1917-18 (Part III)

Though Terre Haute's "Red Light District" reopened on Nov. 7, 1917, most former houses of ill fame stayed dark.

Many prostitutes had relocated to other cities, and presumably, were gainfully employed. Because mayor-elect Charles R. Hunter was committed to cleaning up "the Tenderloin" upon assuming office on Jan. 7, 1918, it was not deemed worthwhile to reestablish a resort for "a mere 60 days."

Saloons were another matter. Mayor James M. Gossom decided to allow saloon owners to enjoy a "last inning" before Hunter took over, especially because Prohibition was scheduled to go into effect on April 2, 1918.

According to unconfirmed reports, several saloonkeepers -- particularly Jimmy Locke, Wade Duncan and Jimmy Shea -- lost considerable money supporting Gossom's campaign. The 60-day window might allow his boosters time to recover losses.

The projected impact of Prohibition was being felt. Under a federal law, two of Terre Haute's distilleries were forced to cease operations at 11 p.m. Sept. 8, 1917.

Commercial Distilling Co. at 501 Prairieton Ave., owned by Thomas E. Beggs, and Merchants Distilling Co. at 1535 S. First St., owned by Fred B. Smith, kept their employees while awaiting a decision on the constitutionality of "Indiana's dry law."

The Majestic Distillery, 301-311 S. First St. -- the nation's second-largest distillery -- stayed open to blend spirits under a contract with the federal government.

While Hunter was doling out appointments to his new administration, Gossom discharged or demoted several employees known to favor the enforcement of regulations requiring bars to close on Sunday and between midnight and 5 a.m. on other days.

After the election Gossom named William "Billie" O'Donnell, co-owner of a westside saloon, as president of the Terre Haute Board of Safety.

In early December, rumors surfaced that some members of the Retail Merchants Association were urging Hunter to permit a few brothels near downtown to remain open.

Under the alleged proposal, the merchants promised to ask Terre Haute's three daily newspapers -- The Star, The Tribune and The Post -- to discontinue writing stories about the underworld so as to minimize community agitation.

Hunter denied the story and each of the newspapers took strenuous exception to any suggestion that advertising dollars could manipulate editorial policy.

The day after Hunter became the city's chief executive, businesses in the Red Light District were notified that all laws would be strictly enforced. Most bordellos disappeared promptly and saloons closed at the required times.

 

A possible scandal unfolded when Hunter's Superintendent of Police John Beattie accepted two new desks as gifts from Eddie Gosnell. Meanwhile, Sullivan Circuit Court Judge William H. Bridwell was named special judge in the cases pending against Gosnell and Frank "Buster" Clark as the result of the July 1917 slot machine raids.

Attorneys for Clark and Gosnell attacked the indictments by filing pleas in abatement alleging that the criminal charges were fruits of a massive campaign, financed by private sources, targeted specifically at the two men.

Meanwhile, the federal charges against Vigo County Prosecutor William E. Horsley for failing to advise local conscription boards of their statutory duties were defeated when the evidence disclosed that no one sought his advice.

Seeking re-election in November, Horsley asked special prosecutors James O. Piety and Thomas F. O'Mara to resign but they refused to do so.

Horsley testified for Clark and Gosnell during hearings on the pleas in abatement, attesting to pressure imposed by the Committee of Fourteen to "get" the two men. Despite his testimony, the trial court denied the pleas.

On Tuesday, April 2, 306 licensed Terre Haute businesses ceased to operate as "saloons" at midnight. Most did not close but became "soft drink parlors," dispensing non-alcoholic beverages, including "C.V.," Celto and Bevo produced locally by the Peoples Brewing Co. and the Terre Haute Brewing Co.

It was easier to enforce regulations governing saloon hours than to prevent a soft drink parlor from serving whiskey or beer out of a back room to regular customers.

Anti-prohibition adherents remained hopeful that the Indiana Supreme Court would void the state's "dry statute." Beer brewed in Terre Haute was stockpiled.

A Terre Haute Brewing Co. employee reported he delivered 34 carloads of beer to a depot in Westville, Ill., a few days before April 2.

By May 1918 the number of Vigo County roadhouses outside the city limits had ballooned from 60 to 150. One notorious haunt was the Oak View Club at 13th Street and Haythorne Avenue, owned and operated by Gosnell.

Detective Pearl Conover uncovered a stash of stolen booze in a shed on the "west side," transported there from Westville in a Buick touring car and a Ford truck.

In June, a Sullivan County grand jury returned indictments against Clark, Gosnell, Edward Curran, Edgar Thompson, Lloyd Clark and George McCauley for grand larceny.

Slowly but surely, a few brothels reopened. In May, abatement cases were filed to shut down 15 houses of ill fame. A month later, a vice squad arrested 30 people in a raid, including Terre Haute City Councilman Everett Raider, who was visiting Edith Smith's resort at 214 N. Second St.

Raider disappeared for a few weeks and, finally, resigned from his elected post.

Conclusion next week

Prior Story  Next Story  
 Historical Index BackHome