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Queensland Police and political corruption circa 1961: North Queensland: & Police Commissioner Frank Bischof


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Queensland Police and political corruption circa 1961: North Queensland: & Police Commissioner Frank Bischof


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Queensland Police and political corruption circa 1961: North Queensland: & Police Commissioner Frank Bischof


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Queensland Police and political corruption circa 1961: North Queensland: & Police Commissioner Frank Bischof

From  HISTORY OF ORGANISED CRIME IN QUEENSLAND:  Organising Crime in Queensland P.J. Dickie - thesis draft 1
By  P.J. Dickie

Between 1928 and 1938 a number of Italians and one Australian prostitute were murdered or mutilated in the Ayr, Ingham and Innisfail areas of North Queensland. Although some of the murders appear to have been related to the domestic affairs of some of the victims, others seemed to be linked to the extortion activities of an organisation known as the Black Hand or Mano Nera. The murders ceased after the killing, in 1938, of suspected gang leader and Ingham baker Vincenzo D'Agostino. In 1930 and 1934, prominent members of the Calabrian communities of Sydney and the Riverina town of Griffiths were killed. Police investigations showed family and other connections between these victims, their associates, and the "Black Handers" of Ingham, including, notably, D'Agostino. No particular significance was to be attached to these events until another round of killings in the Calabrian community of Melbourne in the 1960s.

Impact of the Second World War:

Following the Japanese entry into the Second World War Queensland became a forward base for the conduct of the war. The influx of servicemen was a major boost for the illegal economy with the demand for illegal services increasing perhaps three-fold. In particular, the technically illegal but effectively regulated prostitution "houses" were unable to cope; an unregulated industry quickly sprang up to meet the deficiency, allegedly with some tacit assistance from Federal authorities calling on the Sydney criminal establishment to provide additional prostitutes. In addition, wartime restrictions on many goods created the conditions for a thriving black market.

Precincts sprang up where illegal alcohol, prostitution and gambling occurred in close proximity to one another. For the first time Queensland's illegal economy was sizeable and centralised enough to support persons taking the role of organisers or "protectors".

A listing of the principal illegal goods and services of the wartime era would include unlicensed alcohol, gambling, unregulated prostitution, vehicles and fuel, stolen or "recycled" military equipment, official documentation, black market commodities and abortion.

Although little hard evidence survives, anecdotal accounts support the view that corruption in the police force increased significantly during the war years, and that it extended well beyond the hitherto relatively benign activity of turning a blind eye to the activities of publicans and SP bookmakers.

The illegal economy collapsed at the end of the war. The healthiest sector, sustained by continuing post war shortages, was property crime. Thieves and their fences then adjusted with minimum discomfort to an era of increasing prosperity and the greatly increased availability of consumer goods. The war left a significant legacy; at least some of the detectives exposed to corruption during the war maintained corrupt informer/partner relationships with favoured criminals. With the most significant rewards in property crime, those thieves and fences in particular who had influential police contacts were regarded as  the criminal elite. They were to remain so until the 1960s.

The SP industry boomed during the war despite the requisitioning of racetracks as troop camps. Unlike Sydney, Queensland's SP operators continued to maintain their independence of the general criminal milieu, finding only a natural community of interest with publicans trading out of hours. Both activities certainly benefited from corruption, as far as is known, usually through mainly local arrangements.

III. Postwar development of organised crime

Against a background of frequent allegations of widespread illegal gambling and, to a lesser extent, corruption, the State Government established a fourth Royal Commission on racing in 1951. Police then estimated there were 980 illegal bookmakers in the State, with 530 in the metropolitan area alone. The Royal Commission recommended that off-course betting be permitted outside the metropolitan area, or sufficiently distant to avoid upsetting the principal racing clubs. The government enacted legislation in 1954 in line with these recommendations but with the added proviso that a local referendum had to approve the setting up of betting shops. Little changed.

Later evidence to the (Fitzgerald) Commission of Inquiry indicated that both SP bookmakers and publicans were involved in political as well as police corruption, making payments into a "Premier's Fund". A new Country Party-Liberal Party government took office in 1957, and in 1962 introduced legal off-course betting in the shape of the TAB. The discovery by the government that its newly appointed Police Commissioner, Frank Eric Bischof, was in receipt of considerable corrupt payments from SP bookmakers, was kept concealed from public knowledge. Bischof stayed in office.

In retrospect, the appointment of Bischof handed control of the police force to a clique of officers who had become accustomed to corruption during the Second World War.

Some evidence has come to light indicating an almost immediate attempt to extort protection monies from the technically illegal but by long tradition "regulated" houses of prostitution; when this foundered because of the scale of demands for payment by police, Bischof unilaterally closed the brothels. Restoring the status quo would, the government realised, place them in a difficult position politically; the celebrated "houses" remained closed and prostitutes began to work from streets, bars and suburban homes. This could occur regularly only with the tacit approval of police; with the restraining influence of medically-based regulation removed, corruption flourished.

The effect of Bischof's action was to bring prostitution into the mainstream illegal economy, increasing both the overall size of the illegal economy and the scope for greater criminal organisation. For the first time a generalised criminal elite began to develop in Brisbane, composed of corrupt police and their favoured thieves, fences, prostitutes, sly grog merchants and gambling entrepreneurs. In such a grouping, police were able to exert a considerable degree of control over crime, on occasion, it has been alleged, organising it.

When required, crime could also be "solved" with amazing rapidity. In the early 1960s, however, the focus of corruption in the police force began to shift away from sharing in the proceeds of crime towards the receipt of regular income from the providers of illegal services, most significantly the prostitutes, SP bookmakers, and the relatively new baccarat clubs, the precursors of the illegal casino.

Institutionally, this trend was marked in 1962 by the consolidation of Licensing Branch responsibilities to include policing all metropolitan prostitution, out of hours liquor trading, gaming and SP bookmaking. It was confirmed by the subsequent voluntary transfer of a number of notable Consorting Squad detectives to the Licensing Branch.

Cosy relationships between police and criminals have one weakness, an in built tendency to recurrent scandal. In 1963, one such scandal lead to a Royal Commission, into alleged police toleration of after-hours drinking and prostitution at the inner city National Hotel. The police in question, including Bischof, emerged essentially unscathed; later there was to be evidence that with the assistance of civilian and criminal associates they had significantly manipulated the evidence put before the Royal Commission.
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