When the Mob Infiltrated City Government

Former Water Commissioner James Marcus (center), is escorted from FBI headquarters in New York by two unidentified FBI agents. Marcus, who recently resigned as New York City Commissioner of Water Supp

In 1967, the FBI arrested New York Water Commissioner James Marcus for taking kickbacks from the mob. Marcus was a close friend of Mayor John V. Lindsay, and his arrest was one of the most personally embarrassing political scandals of Lindsay's career. In this press conference, Lindsay responds to reporters’ questions about the arrest and tries to assure New Yorkers that their elected officials are not for sale.

James Marcus was first hired in 1965 as a non-paid aide for Lindsay, dealing with issues like the clean up of MacDougal Street. Despite various scandals and even a lawsuit, he had a precipitous rise: one year later, in 1966, he was appointed the city's Commissioner of Water, Gas, and Electric. Young, handsome, and well connected, Marcus moved well among the social circles of prominent Northeast families: he was married to the niece of Ambassador John Cabot Lodge and was a rising star in New York City politics.

Marcus' glossy personal and professional histories, however, were a total fraud.

Various accounts describe Marcus as having dropped out of two or three different colleges despite claiming to be a law school graduate.  His entree into Lindsay's inner circle was partially a result of his fabricating his resume experience with successful careers in business, finance, and public relations. Marcus gave everyone around him the impression he had family money, but at the time of the investigation, he was knee deep in debt to some unsavory loan sharks. In short, James Marcus was a dream come true for the Cosa Nostra. His financial woes and secret past were perfect weaknesses to exploit.

Lucchese crime family boss Antonio "Tony Ducks" Corallo leaned on Marcus.  As head of the city's utilities, Marcus controlled construction contracts for the city's water, gas, and electric infrastructure. Corallo convinced Marcus to award an $800,000 no-bid contract to contractor ST Grand, Inc., to cleanup the Jerome Park Reservoir in the North Bronx.  In exchange, the two would split a $40,000 kickback. The bribery scheme was exposed in the fall of 1966. Later, it blossomed into an even bigger bribery conspiracy when the FBI eventually laid down a series of indictments for Lindsay allies, including prominent politicians like former Tammany Hall leader Carmine DeSapio, whom Marcus testified against in a separate trial.

This press conference takes place right after Marcus' 1967 arrest. Mayor Lindsay tries to position himself above the fray, adopting a bureaucratic tone in answering reporters questions.  The mayor explains the contract vetting process, the necessity for no-bid awards in "emergency situations," and the integrity of the administrative process. Ultimately, Lindsay passes the buck to his newly appointed Commissioner of Investigations, Arnold G. Fraiman, and sidesteps several questions about other internal corruption allegations.

In time, the bribery scandal was not as far reaching as some in the press had hoped.  Corruption was exposed, but other top Lindsay officials remained unscathed, and the Marcus Affair was eventually dwarfed by many other problems that plagued Lindsay during his tenure. And yet, it seemed made for the movies - as perfect as any good pulp fiction. Main characters were a mafia hit-man and a suave political insider with a troubled financial past. Mayor Lindsay was a polished political dilettante whose good looks and squeaky-clean image contrasted starkly with the city's seedier underbelly. And, of course, there was the backdrop of New York City in the 1960s, oozing charming urban grit. And who can forget all those stylishly noir men wearing hats.

Audio courtesy of the NYC Municipal Archives WNYC Collection.

WNYC archives id: 150338
Municipal archives id: T1992