1 00:00:01,875 --> 00:00:04,042 Since before the birth of the United States, 2 00:00:04,208 --> 00:00:09,167 alcohol, sex and gambling have lurked in every dark corner. 3 00:00:09,167 --> 00:00:13,667 Every city has neighborhoods that are offering leisure 4 00:00:13,667 --> 00:00:16,500 and vice and sometimes seediness. 5 00:00:16,500 --> 00:00:19,250 I'll make it worth your while. 6 00:00:19,375 --> 00:00:20,667 America's really fertile 7 00:00:20,792 --> 00:00:22,583 for these types of sin industries. 8 00:00:22,708 --> 00:00:24,167 You just gotta pick your poison. 9 00:00:25,375 --> 00:00:27,167 At the turn of the 20th century, 10 00:00:27,292 --> 00:00:29,167 visionary entrepreneurs, Buck Duke, 11 00:00:29,292 --> 00:00:31,875 Jack Daniel, and Adolphus Busch, 12 00:00:32,000 --> 00:00:34,250 have turned small regional indulgences 13 00:00:35,833 --> 00:00:38,000 into powerful national brands. 14 00:00:39,375 --> 00:00:42,333 Hedonism is in the grasp of every American. 15 00:00:43,292 --> 00:00:45,333 ♪ I can dance with the devil ♪ 16 00:00:45,458 --> 00:00:48,708 Now, the temperance movement is battling back. 17 00:00:48,875 --> 00:00:49,875 Who's Carrie Nation? 18 00:00:50,000 --> 00:00:52,458 A problem. 19 00:00:52,542 --> 00:00:55,500 If they wanna ban the sale of cigarettes, 20 00:00:55,667 --> 00:00:56,833 let them. 21 00:00:56,958 --> 00:00:58,000 They'll only make the rest of the country 22 00:00:58,167 --> 00:00:59,292 want them even more. 23 00:01:00,667 --> 00:01:01,417 And protection 24 00:01:01,542 --> 00:01:03,375 from sexually transmitted diseases. 25 00:01:04,792 --> 00:01:06,042 Condoms, rubber condoms. 26 00:01:06,167 --> 00:01:07,417 Is outlawed. 27 00:01:08,750 --> 00:01:10,958 While one woman's underground numbers racket 28 00:01:11,083 --> 00:01:13,417 will give rise to the state lotto system. 29 00:01:13,542 --> 00:01:14,667 You're light. 30 00:01:14,792 --> 00:01:16,083 You think you can come in here and intimidate me? 31 00:01:16,208 --> 00:01:18,583 As a battle for America's soul erupts. 32 00:01:18,708 --> 00:01:20,167 You are under arrest 33 00:01:20,292 --> 00:01:22,792 for violating Section 37, Article 2 of the penal code. 34 00:01:26,125 --> 00:01:27,875 America will never go dry. 35 00:01:28,000 --> 00:01:29,208 You'll never get away with this. 36 00:01:29,333 --> 00:01:31,042 Get out! 37 00:01:32,167 --> 00:01:32,917 ♪ Aye aye ♪ 38 00:01:33,042 --> 00:01:34,333 ♪ I did it and aye aye ♪ 39 00:01:34,417 --> 00:01:35,958 ♪ I proved it and aye aye ♪ 40 00:01:36,042 --> 00:01:38,167 ♪ I finished, I came and I saw ♪ 41 00:01:38,292 --> 00:01:39,917 ♪ I gave it my all ♪ 42 00:01:40,042 --> 00:01:41,667 ♪ I changed the game ♪ 43 00:01:41,792 --> 00:01:43,292 ♪ I made it a boss ♪ 44 00:01:43,292 --> 00:01:44,792 ♪ Yeah ♪ 45 00:01:55,792 --> 00:01:56,667 The Gilded Age, 46 00:01:58,292 --> 00:02:01,333 it's remembered as a time of wealth, opulence and glamor, 47 00:02:02,667 --> 00:02:05,458 but a closer look reveals another side. 48 00:02:09,208 --> 00:02:13,125 It was an age of excessive aggression and business. 49 00:02:13,125 --> 00:02:14,375 The wealth was extraordinary 50 00:02:14,542 --> 00:02:16,792 and the poverty was absolutely brutal. 51 00:02:16,792 --> 00:02:19,500 What we don't realize is there was no social safety net. 52 00:02:19,625 --> 00:02:21,333 So you literally could starve to death. 53 00:02:21,458 --> 00:02:23,167 You had to go beg in the street. 54 00:02:23,292 --> 00:02:25,583 Mark Twain describes it as an age, 55 00:02:25,708 --> 00:02:29,250 where on the surface, everything is gleaming with gold. 56 00:02:29,375 --> 00:02:32,167 But underneath that surface, it's rotten at the core. 57 00:02:32,292 --> 00:02:35,250 You see that in the proliferation of vices. 58 00:02:35,375 --> 00:02:36,583 Alcohol and tobacco 59 00:02:36,708 --> 00:02:39,000 are becoming easier to find than ever. 60 00:02:39,000 --> 00:02:40,167 While they're still prevalent 61 00:02:40,292 --> 00:02:42,500 in sketchy saloons and back alleys, 62 00:02:42,625 --> 00:02:45,875 now they're showing up in local shops, the general stores. 63 00:02:47,500 --> 00:02:49,875 Driven by the first national brands of their kind, 64 00:02:51,417 --> 00:02:54,750 Jack Daniel's, Budweiser, and American Tobacco. 65 00:02:59,292 --> 00:03:01,083 Anheuser-Busch in the Midwest, 66 00:03:01,208 --> 00:03:03,625 they're able to adopt refrigerated carts. 67 00:03:04,667 --> 00:03:07,750 They can send their products to Los Angeles, 68 00:03:07,875 --> 00:03:10,208 to Texas, to New York. 69 00:03:12,458 --> 00:03:15,208 You can have somebody smoking a cigarette 70 00:03:15,333 --> 00:03:17,708 that has tobacco that was cultivated in the south. 71 00:03:19,250 --> 00:03:23,375 You could be in a town that has no distillery, 72 00:03:23,542 --> 00:03:27,167 and you could get your hands on a bottle of Jack Daniel's. 73 00:03:29,000 --> 00:03:32,333 Americans sucked down almost 24 gallons of beer 74 00:03:32,458 --> 00:03:35,708 each year, more than double the amount 75 00:03:35,833 --> 00:03:37,542 of just a few years before, 76 00:03:37,667 --> 00:03:40,417 and Adolphus Busch's signature Budweiser 77 00:03:40,542 --> 00:03:42,833 sells more than a million bottles a year. 78 00:03:44,375 --> 00:03:45,708 These innovators, people like a Henry Ford, 79 00:03:45,833 --> 00:03:49,625 a Adolphus Busch, a Bill Gates and a Elon Musk, 80 00:03:49,750 --> 00:03:50,875 all are gamblers. 81 00:03:51,000 --> 00:03:55,167 And they're willing to gamble on their own ability, 82 00:03:55,292 --> 00:03:56,167 their own vision. 83 00:03:56,292 --> 00:03:57,708 Busch took that ambition 84 00:03:57,833 --> 00:04:00,875 and was able to succeed at wild levels. 85 00:04:06,167 --> 00:04:07,208 This one. 86 00:04:10,708 --> 00:04:12,500 Now, Busch is trying to groom 87 00:04:12,667 --> 00:04:15,833 his eventual successor, his son, August. 88 00:04:16,750 --> 00:04:18,375 This is you. 89 00:04:18,500 --> 00:04:19,167 Sit, 90 00:04:19,292 --> 00:04:20,208 watch, 91 00:04:21,542 --> 00:04:22,750 learn. 92 00:04:27,625 --> 00:04:29,458 August had grown up in the brewery, 93 00:04:29,583 --> 00:04:32,375 but he simply did not want anything to do with it. 94 00:04:32,500 --> 00:04:34,625 And just not particularly interested 95 00:04:34,625 --> 00:04:37,000 in having somebody else, especially his father, 96 00:04:37,125 --> 00:04:38,583 tell him what to do all the time. 97 00:04:38,708 --> 00:04:41,333 He was used to doing whatever he wanted. 98 00:04:43,208 --> 00:04:44,833 Instead of learning the ropes, 99 00:04:44,958 --> 00:04:46,042 August spent years 100 00:04:46,167 --> 00:04:48,000 running a failing cattle ranch in Montana. 101 00:04:54,542 --> 00:04:56,833 Before being forced back by his dad. 102 00:04:56,958 --> 00:04:57,667 I'm here. 103 00:04:58,500 --> 00:04:59,875 You look ridiculous. 104 00:05:00,000 --> 00:05:00,792 Take that off. 105 00:05:01,875 --> 00:05:03,042 Sit down. 106 00:05:03,167 --> 00:05:04,833 Now, he's second in command 107 00:05:05,000 --> 00:05:07,542 at the biggest beer company in the country. 108 00:05:10,417 --> 00:05:14,000 When August came back from being a cowboy, 109 00:05:14,125 --> 00:05:15,542 and he came back to St. Louis 110 00:05:15,667 --> 00:05:18,375 and rather grudgingly settled in 111 00:05:18,542 --> 00:05:21,167 at the brewery with his father. 112 00:05:21,167 --> 00:05:23,667 The timing couldn't be worse. 113 00:05:23,667 --> 00:05:26,792 The biggest obstacle Anheuser-Busch has ever faced 114 00:05:26,792 --> 00:05:28,375 is quickly gaining power. 115 00:05:31,000 --> 00:05:32,042 Who's Carrie Nation? 116 00:05:33,250 --> 00:05:34,167 Ugh. 117 00:05:39,375 --> 00:05:41,167 A problem. 118 00:05:41,167 --> 00:05:43,333 Nicknamed a bulldog for Jesus, 119 00:05:43,458 --> 00:05:45,458 Carrie Nation is the radical face 120 00:05:45,583 --> 00:05:47,333 of the temperance movement. 121 00:05:47,458 --> 00:05:49,667 And she spread her anti-vice rhetoric 122 00:05:49,792 --> 00:05:53,500 from a small church in Kansas, all across the Midwest. 123 00:05:56,333 --> 00:05:58,375 Carrie Nation or Hatchet Granny, 124 00:05:58,500 --> 00:06:01,000 was part of the women's Christian temperance movement. 125 00:06:01,000 --> 00:06:03,875 Carrie Nation looked like your grandmother or your aunt. 126 00:06:04,000 --> 00:06:07,667 She was this small woman, but she was fierce. 127 00:06:08,750 --> 00:06:10,625 And she was famous or infamous 128 00:06:10,625 --> 00:06:14,750 for going to saloons in Kansas and chopping 'em up. 129 00:06:15,917 --> 00:06:19,667 She has a way that she goes about her business. 130 00:06:19,667 --> 00:06:21,250 Serious woman. 131 00:06:21,375 --> 00:06:22,958 And goes out and attacks. 132 00:06:24,250 --> 00:06:25,583 I mean, you have to think about it, 133 00:06:25,708 --> 00:06:28,333 you had to be pretty committed to your work to do that. 134 00:06:29,500 --> 00:06:31,167 You could think of American history 135 00:06:31,292 --> 00:06:34,083 as being this long kind of struggle 136 00:06:34,208 --> 00:06:36,458 between forces of modernization 137 00:06:36,542 --> 00:06:38,667 and forces towards, what we would think of today, 138 00:06:38,792 --> 00:06:41,250 as like traditional family values. 139 00:06:41,375 --> 00:06:43,375 But they really take an intense form 140 00:06:43,542 --> 00:06:45,333 around the turn of the 20th century 141 00:06:45,417 --> 00:06:48,833 because society was changing so rapidly. 142 00:06:49,000 --> 00:06:52,083 Nation's been arrested more than 30 times. 143 00:06:52,208 --> 00:06:53,708 And her 20 year crusade 144 00:06:53,875 --> 00:06:56,250 is grabbing headlines across the country. 145 00:06:56,375 --> 00:06:58,917 Now, after years of targeting liquor, 146 00:06:59,042 --> 00:07:01,833 the movement is coming for brewers as well. 147 00:07:01,958 --> 00:07:04,625 They want to go after the distillers, fine. 148 00:07:05,958 --> 00:07:09,208 But there's a difference between whiskey and beer. 149 00:07:11,500 --> 00:07:12,917 So why don't you say that? 150 00:07:16,375 --> 00:07:18,917 Liquor's the problem, not beer. 151 00:07:23,875 --> 00:07:25,750 To fight Carrie Nation, 152 00:07:25,875 --> 00:07:30,625 Adolphus Busch spends $100,000, 2.6 million today, 153 00:07:30,750 --> 00:07:33,750 to advertise beer as a healthy alternative to liquor. 154 00:07:34,583 --> 00:07:35,500 ♪ Dangerous, in control ♪ 155 00:07:35,667 --> 00:07:37,333 ♪ I'm cuffing it, I know ♪ 156 00:07:37,458 --> 00:07:39,792 Busch systematically and intentionally 157 00:07:39,792 --> 00:07:43,000 set out to distinguish the beer industry and beer 158 00:07:43,167 --> 00:07:47,083 as a very different product than hard liquor. 159 00:07:48,250 --> 00:07:50,583 ♪ Here I go ♪ 160 00:07:50,708 --> 00:07:53,500 The ads pitch beer as a beverage of moderation, 161 00:07:53,625 --> 00:07:55,917 focusing on its lower alcohol content 162 00:07:56,042 --> 00:07:58,042 and nutritional benefits. 163 00:07:58,208 --> 00:07:59,500 Anheuser-Busch's ads, 164 00:07:59,500 --> 00:08:01,500 there was always like a family scene. 165 00:08:01,500 --> 00:08:03,167 Everybody is sitting there drinking Budweiser. 166 00:08:03,167 --> 00:08:04,667 If that was gin, 167 00:08:04,792 --> 00:08:08,375 like this scene wouldn't look quite the same. 168 00:08:08,500 --> 00:08:09,917 At least it wasn't whiskey. 169 00:08:10,042 --> 00:08:11,292 It wasn't vodka. 170 00:08:11,292 --> 00:08:14,625 It was wholesome for wholesome Americans. 171 00:08:14,750 --> 00:08:15,833 Busch's campaign 172 00:08:15,958 --> 00:08:18,458 is a direct assault on distillers. 173 00:08:22,708 --> 00:08:25,833 As prohibition fever became more intense, 174 00:08:25,958 --> 00:08:28,625 the brewers just aggressively pushed the idea 175 00:08:28,750 --> 00:08:30,250 that they're not distillers, 176 00:08:30,375 --> 00:08:34,958 which, no surprise, was infuriating to the distillers. 177 00:08:35,083 --> 00:08:37,125 Including the most famous whiskey brand 178 00:08:37,250 --> 00:08:39,250 in the country, Jack Daniel's. 179 00:08:40,542 --> 00:08:42,333 Anheuser-Busch is railroading us. 180 00:08:46,875 --> 00:08:48,375 Last thing we need right now 181 00:08:48,542 --> 00:08:50,000 is to go to war with the brewers. 182 00:08:50,125 --> 00:08:51,000 Jack Daniel's 183 00:08:51,000 --> 00:08:53,458 sells over half a million bottles a year, 184 00:08:53,583 --> 00:08:56,708 and his nephew, Lem Motlow, helps run operations. 185 00:08:56,875 --> 00:08:59,917 But now, temperance is threatening to tear it all down. 186 00:09:00,042 --> 00:09:02,833 Jack Daniel didn't marry, didn't have any kids. 187 00:09:03,000 --> 00:09:06,750 He really didn't have anybody to pass his legacy down to. 188 00:09:06,875 --> 00:09:09,667 Jack and Lem are facing a growing crisis. 189 00:09:09,833 --> 00:09:11,833 They may haven't always seen eye to eye. 190 00:09:11,917 --> 00:09:14,542 Lem sort of presented himself to the world 191 00:09:14,667 --> 00:09:17,000 in a different way from Jack Daniels. 192 00:09:17,000 --> 00:09:18,958 I'm a outlaw, a renegade, 193 00:09:19,042 --> 00:09:21,792 I don't follow the rules kind of thing. 194 00:09:25,167 --> 00:09:26,875 Just inspecting the barrels. 195 00:09:27,000 --> 00:09:28,667 They are old. 196 00:09:29,625 --> 00:09:31,667 Now we say aged. 197 00:09:32,083 --> 00:09:33,583 They are in need of replacement. 198 00:09:33,708 --> 00:09:36,125 I don't want you trying to reinvent the wheel here. 199 00:09:37,250 --> 00:09:38,583 We'll continue this later. 200 00:09:40,708 --> 00:09:41,667 Already under attack 201 00:09:41,792 --> 00:09:42,833 from the temperance movement, 202 00:09:43,000 --> 00:09:45,375 and now from desperate beer brewers, 203 00:09:45,500 --> 00:09:47,542 Jack and Lem need to get on the same page 204 00:09:47,708 --> 00:09:49,667 if they're going to weather the storm. 205 00:09:51,042 --> 00:09:53,167 Maybe consider putting out a peach brand. 206 00:09:53,167 --> 00:09:54,375 No. 207 00:09:54,500 --> 00:09:55,417 Just hear me out. 208 00:09:55,542 --> 00:09:56,583 No, it's out of the question. 209 00:09:56,708 --> 00:09:57,458 Nothing is out of the question. 210 00:09:57,583 --> 00:09:59,375 It's my name on the bottle. 211 00:10:02,500 --> 00:10:03,625 Slap somebody else's name on the label. 212 00:10:03,625 --> 00:10:05,042 Hell, put mine on. 213 00:10:05,208 --> 00:10:07,042 Lem really wanted to build a brandy distillery 214 00:10:07,167 --> 00:10:10,292 'cause brandy was a lower proof than whiskey. 215 00:10:10,292 --> 00:10:11,417 Jack was like, "No, no, no. 216 00:10:11,542 --> 00:10:12,792 We're just gonna do this thing 217 00:10:12,792 --> 00:10:13,708 and we're just gonna do this thing great, 218 00:10:13,833 --> 00:10:15,708 and that's what we're about." 219 00:10:15,833 --> 00:10:18,042 So long as we keep making the best whiskey in the world, 220 00:10:18,167 --> 00:10:20,708 I suppose everything else will work itself out. 221 00:10:20,833 --> 00:10:23,833 Just thinking about what's best for the company. 222 00:10:23,958 --> 00:10:27,167 The product is the company. 223 00:10:27,292 --> 00:10:28,708 You know, it's not personal. 224 00:10:29,583 --> 00:10:30,708 It's just business. 225 00:10:37,708 --> 00:10:41,500 By 1903, the growing storm of temperance 226 00:10:41,625 --> 00:10:42,917 continues to build. 227 00:10:43,042 --> 00:10:45,583 Soon, three states have gone dry, 228 00:10:45,708 --> 00:10:48,833 and the rest of the country begins to take notice. 229 00:10:48,917 --> 00:10:52,500 Individual states were putting in their own prohibitions 230 00:10:52,625 --> 00:10:55,875 well before prohibition itself actually hit. 231 00:10:56,000 --> 00:10:59,000 And sometimes it even went down to county to county, 232 00:10:59,125 --> 00:11:01,542 Jack Daniel's, where it's made, Lynchburg, 233 00:11:01,667 --> 00:11:03,375 even today is a dry county. 234 00:11:03,542 --> 00:11:04,958 And so you could buy at the distillery, 235 00:11:05,083 --> 00:11:07,167 but you can't buy in the rest of the county. 236 00:11:08,708 --> 00:11:10,333 Now, reformers are targeting tobacco 237 00:11:10,458 --> 00:11:12,167 and gambling too. 238 00:11:12,292 --> 00:11:13,458 Part of the issue 239 00:11:13,583 --> 00:11:17,500 is how much pleasure are we allowed to have 240 00:11:17,625 --> 00:11:19,833 that is acceptable to society. 241 00:11:20,000 --> 00:11:23,250 Some individuals say the best thing you can do for society 242 00:11:23,375 --> 00:11:27,833 is to eliminate these sources of ill health. 243 00:11:28,000 --> 00:11:29,708 And other individuals are gonna say, 244 00:11:29,875 --> 00:11:31,833 "But I'm an American and I have my freedom. 245 00:11:32,000 --> 00:11:33,667 And if I wanna smoke, I'm gonna smoke. 246 00:11:33,833 --> 00:11:35,542 And if I wanna drink, I'm gonna drink." 247 00:11:35,667 --> 00:11:38,167 And there is no easy answer to that. 248 00:11:38,167 --> 00:11:40,833 Be therefore perfect, even as your Father, 249 00:11:40,958 --> 00:11:43,292 which is in heaven, is perfect. 250 00:11:43,417 --> 00:11:44,625 Anti-vice crusaders 251 00:11:44,750 --> 00:11:47,167 are also cracking down on pornography, 252 00:11:47,167 --> 00:11:49,917 which is transformed from sketches and drawings 253 00:11:50,042 --> 00:11:53,333 to photographs and even moving pictures. 254 00:11:53,458 --> 00:11:54,708 And thanks to their lobbying, 255 00:11:54,875 --> 00:11:58,167 all forms of contraception are virtually illegal. 256 00:11:58,292 --> 00:11:59,750 If you were caught 257 00:11:59,875 --> 00:12:01,542 manufacturing and selling condoms, 258 00:12:01,667 --> 00:12:04,000 you could be fined or sent to prison. 259 00:12:04,000 --> 00:12:05,417 So in some ways, 260 00:12:05,542 --> 00:12:08,667 buying a condom in the late 19th and early 20th century, 261 00:12:08,792 --> 00:12:14,208 would've been similar to buying marijuana in the 1990s. 262 00:12:19,875 --> 00:12:21,333 No one knows the consequences better 263 00:12:21,458 --> 00:12:24,625 than Julius Schmid, the former factory worker 264 00:12:24,625 --> 00:12:26,542 who was busted selling illegal condoms 265 00:12:26,708 --> 00:12:29,083 he made out of sausage casings. 266 00:12:29,208 --> 00:12:31,708 Schmid was bailed out and then a month later, 267 00:12:31,875 --> 00:12:34,875 the judge gave him a fine of $50 268 00:12:35,042 --> 00:12:39,167 and seized and destroyed the 700 condoms 269 00:12:39,292 --> 00:12:42,583 that were collected in that September raid. 270 00:12:42,708 --> 00:12:43,750 Undeterred, 271 00:12:43,875 --> 00:12:45,583 Schmid jumps right back into the game. 272 00:12:45,708 --> 00:12:47,333 I mean, it was kind of crazy. 273 00:12:47,417 --> 00:12:49,083 In spite of getting arrested, 274 00:12:49,208 --> 00:12:53,833 he's determined to still fulfill the demand for condoms. 275 00:12:53,958 --> 00:12:56,208 He realizes that there's still money to be made. 276 00:12:56,375 --> 00:12:58,000 But while he was out of commission, 277 00:12:58,000 --> 00:13:00,583 other illicit dealers have muscled in on his turf. 278 00:13:00,708 --> 00:13:01,583 What's going on? 279 00:13:01,708 --> 00:13:02,500 You disappeared. 280 00:13:02,667 --> 00:13:04,125 I've made other arrangements. 281 00:13:07,083 --> 00:13:09,083 Now, he's looking for a new weapon 282 00:13:09,208 --> 00:13:10,500 to take it back. 283 00:13:10,500 --> 00:13:12,250 A lot of these early condoms 284 00:13:12,375 --> 00:13:17,417 were made out of intestines, linen or fish skin. 285 00:13:18,042 --> 00:13:22,708 I can only imagine it might not be as romantic. 286 00:13:23,167 --> 00:13:25,833 So Julius Schmid knows what needs to happen. 287 00:13:26,000 --> 00:13:29,042 Schmid wants to transform the condom entirely, 288 00:13:29,208 --> 00:13:31,083 and to do it he looks to a technology 289 00:13:31,208 --> 00:13:33,417 used in industrial manufacturing. 290 00:13:33,542 --> 00:13:36,125 We tailor it to your exact specifications. 291 00:13:37,208 --> 00:13:38,792 Called vulcanized rubber. 292 00:13:40,125 --> 00:13:43,000 Pioneered by Charles Goodyear in 1839, 293 00:13:43,125 --> 00:13:45,667 vulcanized rubber is treated with heat and sulfur 294 00:13:45,792 --> 00:13:48,292 to make it stronger and more elastic. 295 00:13:48,292 --> 00:13:51,375 Now it's used to make everything from raincoats and galoshes 296 00:13:51,542 --> 00:13:55,917 to industrial gaskets and tires, but not condoms. 297 00:13:56,042 --> 00:13:57,625 I don't believe you mentioned, 298 00:13:57,625 --> 00:13:59,333 what exactly are you manufacturing? 299 00:14:01,667 --> 00:14:02,542 Rubber caps. 300 00:14:05,083 --> 00:14:06,458 Vulcanized rubber 301 00:14:06,583 --> 00:14:10,500 enables the rubber to be manufactured much thinner 302 00:14:10,625 --> 00:14:12,167 and also much more elastic. 303 00:14:12,167 --> 00:14:15,458 And obviously these are two characteristics of condoms 304 00:14:15,542 --> 00:14:17,917 that are gonna make them much more comfortable 305 00:14:18,042 --> 00:14:20,375 and much more effective. 306 00:14:20,542 --> 00:14:21,708 Even though 307 00:14:21,833 --> 00:14:23,042 it could land him right back in jail, 308 00:14:23,167 --> 00:14:25,833 Julius Schmid wants to bring the condom 309 00:14:25,958 --> 00:14:27,542 into the industrial age. 310 00:14:32,667 --> 00:14:34,292 Just a few miles uptown, 311 00:14:34,292 --> 00:14:36,667 without regulation to stand in his way, 312 00:14:36,792 --> 00:14:38,917 Buck Duke has turned America Tobacco 313 00:14:39,042 --> 00:14:42,000 into one of the most powerful conglomerates on the planet, 314 00:14:42,000 --> 00:14:45,208 making him the third richest man in the world 315 00:14:45,375 --> 00:14:48,833 behind only Andrew Carnegie and John D. Rockefeller. 316 00:14:48,917 --> 00:14:51,000 We deem the Carnegie's and the Vanderbilt's 317 00:14:51,125 --> 00:14:53,833 and the Rockefeller's as legitimate enterprise, 318 00:14:53,958 --> 00:14:55,917 but we have a harder time with people 319 00:14:56,042 --> 00:14:58,542 or organizations that are engaged in vice. 320 00:14:58,667 --> 00:15:02,167 But Buck Duke is in many ways the same as Henry Ford 321 00:15:02,292 --> 00:15:03,333 or Carnegie, 322 00:15:03,458 --> 00:15:06,417 they are just different sides of the same coin. 323 00:15:07,750 --> 00:15:09,000 Duke is the biggest buyer 324 00:15:09,000 --> 00:15:11,000 of raw tobacco in the world. 325 00:15:11,125 --> 00:15:13,500 By the 20th century, American Tobacco 326 00:15:13,500 --> 00:15:16,000 sold 90% of the tobacco products 327 00:15:16,125 --> 00:15:19,083 that were sold in the United States. 328 00:15:19,208 --> 00:15:20,458 And he's used his leverage 329 00:15:20,542 --> 00:15:24,333 to bully growers into accepting rock bottom prices. 330 00:15:24,458 --> 00:15:27,125 Couple of farmers outta Kentucky and Tennessee 331 00:15:27,125 --> 00:15:28,667 wanna renegotiate the price 332 00:15:28,792 --> 00:15:30,375 of the tobacco leaf they sell us. 333 00:15:32,417 --> 00:15:35,250 Farmers were outraged about the low prices 334 00:15:35,375 --> 00:15:37,667 that they were receiving for their tobacco. 335 00:15:37,833 --> 00:15:40,125 And they blamed the tobacco monopoly, 336 00:15:40,125 --> 00:15:42,833 which had all the power to set low prices 337 00:15:42,958 --> 00:15:45,542 that farmers were obliged to receive. 338 00:15:45,667 --> 00:15:47,000 Price is already set. 339 00:15:49,833 --> 00:15:51,292 They want to sell to someone else, 340 00:15:52,667 --> 00:15:53,750 good luck to them. 341 00:15:55,958 --> 00:15:58,333 So farmers in Tennessee and Kentucky 342 00:15:58,417 --> 00:16:00,917 form the Planters' Protective Association, 343 00:16:01,042 --> 00:16:03,833 essentially a cooperative marketing society. 344 00:16:03,917 --> 00:16:05,333 Farmers would come together 345 00:16:05,500 --> 00:16:07,208 and pledge to withhold their crop 346 00:16:07,375 --> 00:16:09,667 from the marketplace until prices rose. 347 00:16:11,083 --> 00:16:12,667 Should we make them a counter offer? 348 00:16:20,208 --> 00:16:21,500 We're American Tobacco. 349 00:16:21,625 --> 00:16:24,333 We do not negotiate. 350 00:16:30,167 --> 00:16:32,917 As a businessman, one of Duke's premier qualities 351 00:16:33,042 --> 00:16:36,000 was a ruthlessness that went hand in hand 352 00:16:36,125 --> 00:16:38,375 with a disdain for labor organizing. 353 00:16:39,542 --> 00:16:41,333 Soon, tensions begin to rise 354 00:16:41,417 --> 00:16:43,708 along the fertile tobacco growing portion 355 00:16:43,875 --> 00:16:44,667 of the southeast, 356 00:16:44,833 --> 00:16:47,000 known as the Black Patch. 357 00:16:47,000 --> 00:16:49,625 And in 1905, it turns violent. 358 00:16:52,542 --> 00:16:55,333 And Buck Duke doesn't know that a vicious paramilitary group 359 00:16:55,500 --> 00:16:59,625 is about to wreak havoc and take aim squarely at his back. 360 00:17:08,375 --> 00:17:09,833 Conglomerates are growing to dominate 361 00:17:09,958 --> 00:17:11,500 the US economy. 362 00:17:11,625 --> 00:17:13,333 Andrew Carnegie's US steel 363 00:17:13,458 --> 00:17:16,833 is worth over $34 billion in modern money. 364 00:17:16,958 --> 00:17:19,042 John D. Rockefeller's standard oil 365 00:17:19,208 --> 00:17:21,667 brings in nearly a billion dollars a year. 366 00:17:21,667 --> 00:17:25,250 Buck Duke's American Tobacco is worth over 7 1/2 billion. 367 00:17:26,292 --> 00:17:28,125 You have a couple of successive 368 00:17:28,125 --> 00:17:29,583 presidential administrations 369 00:17:29,708 --> 00:17:31,917 that are all about laissez faire economics. 370 00:17:32,042 --> 00:17:37,167 And the idea is if the market is allowed to do its thing, 371 00:17:37,292 --> 00:17:39,000 that then you will be even 372 00:17:39,167 --> 00:17:40,458 a pretty strong place economically. 373 00:17:40,542 --> 00:17:43,458 So this kind of like anti-regulatory sentiment 374 00:17:43,583 --> 00:17:46,583 contributes to the consolidation of great power 375 00:17:46,708 --> 00:17:47,708 in several monopolies. 376 00:17:47,875 --> 00:17:49,417 These big businessmen 377 00:17:49,542 --> 00:17:52,833 who are able to control entire industries. 378 00:17:54,042 --> 00:17:55,750 Got a minute? 379 00:17:55,875 --> 00:17:57,000 What is it? 380 00:17:57,125 --> 00:17:58,417 There's legislation on the books 381 00:17:58,542 --> 00:18:01,167 to fight monopolies, but it's never enforced. 382 00:18:01,333 --> 00:18:04,125 And for years, Duke has used his corporate power 383 00:18:04,125 --> 00:18:06,958 to bully farmers into taking pennies on the dollar 384 00:18:07,042 --> 00:18:08,292 for their tobacco leaf. 385 00:18:09,500 --> 00:18:11,458 Tobacco farmers could not sell their tobacco 386 00:18:11,542 --> 00:18:14,458 for a price that allowed them to have a decent living. 387 00:18:15,625 --> 00:18:18,542 Monopolies have such an economy of scale 388 00:18:18,667 --> 00:18:22,000 that they can really piss off a lot of people. 389 00:18:22,125 --> 00:18:24,833 You control the market and they have to sell to you 390 00:18:24,958 --> 00:18:28,042 at the price that you determine, not the price they want. 391 00:18:28,167 --> 00:18:29,583 So there's gonna be problems. 392 00:18:30,875 --> 00:18:32,333 These farmers gather together 393 00:18:32,417 --> 00:18:34,083 and they agreed amongst themselves 394 00:18:34,208 --> 00:18:36,750 that they would not sell their tobacco 395 00:18:36,875 --> 00:18:38,042 below a certain price. 396 00:18:38,167 --> 00:18:39,292 And then they went around 397 00:18:39,417 --> 00:18:41,208 and encouraged their neighbors to participate 398 00:18:41,333 --> 00:18:43,500 and to join this association. 399 00:18:43,667 --> 00:18:45,500 Not everybody agreed. 400 00:18:45,500 --> 00:18:47,042 In response to Buck Duke's 401 00:18:47,167 --> 00:18:49,042 hardball buying strategy, 402 00:18:49,167 --> 00:18:52,208 by 1906, the Planters' Protective Association 403 00:18:52,333 --> 00:18:55,875 has 30,000 members that won't sell to American Tobacco, 404 00:18:56,000 --> 00:18:58,167 and they develop a paramilitary wing 405 00:18:58,167 --> 00:19:01,917 called the Night Riders to intimidate anyone who will. 406 00:19:03,375 --> 00:19:05,000 The Night Riders borrow tactics 407 00:19:05,167 --> 00:19:08,833 from a brutal terrorist group active at the time. 408 00:19:08,958 --> 00:19:11,000 Night Riders are terrifying, 409 00:19:11,000 --> 00:19:12,792 riding their horses into town, 410 00:19:12,792 --> 00:19:14,333 setting things on fire, 411 00:19:14,417 --> 00:19:16,708 cutting communication with the outside world, 412 00:19:16,833 --> 00:19:18,333 often in disguise. 413 00:19:18,458 --> 00:19:22,875 It's not that different from a Ku Klux Klan. 414 00:19:23,042 --> 00:19:25,333 They would trample on somebody's crop 415 00:19:25,458 --> 00:19:28,292 if they had sold to the American Tobacco Company, 416 00:19:28,292 --> 00:19:30,500 or they might burn their barn at night. 417 00:19:31,917 --> 00:19:33,333 The Protective Association 418 00:19:33,417 --> 00:19:35,000 is learning techniques from the Klan. 419 00:19:35,000 --> 00:19:37,458 It's got code words, the hooded garb. 420 00:19:37,542 --> 00:19:39,625 It does its work at night. 421 00:19:41,625 --> 00:19:43,833 And over time, disproportionately, 422 00:19:44,000 --> 00:19:45,000 African American farmers 423 00:19:45,167 --> 00:19:48,208 become the victim of this vigilantism. 424 00:19:51,708 --> 00:19:53,167 The press dubs the conflict, 425 00:19:53,167 --> 00:19:55,458 the Black Patch Tobacco Wars, 426 00:19:55,542 --> 00:19:58,375 and they dominate headlines from coast to coast. 427 00:19:58,500 --> 00:20:00,375 Coverage includes scathing rebukes 428 00:20:00,542 --> 00:20:03,292 of the most powerful tobacco magnate in the world, 429 00:20:03,417 --> 00:20:06,167 Buck Duke, who continues to buy tobacco 430 00:20:06,292 --> 00:20:08,083 outside the association, 431 00:20:08,208 --> 00:20:10,417 which some see as provoking the violence. 432 00:20:12,167 --> 00:20:14,167 We need to issue a statement. 433 00:20:14,292 --> 00:20:15,500 It's best to stay ahead of this, 434 00:20:15,625 --> 00:20:17,833 make sure we control the narrative. 435 00:20:17,958 --> 00:20:18,708 No. 436 00:20:20,375 --> 00:20:22,292 I don't think it was really ever a question 437 00:20:22,292 --> 00:20:25,667 whether or not to negotiate with the association. 438 00:20:25,833 --> 00:20:29,417 There was simply no reason to, from a business perspective. 439 00:20:29,542 --> 00:20:30,958 Farmers were in debt. 440 00:20:31,042 --> 00:20:33,000 Farmers were desperate. 441 00:20:33,000 --> 00:20:36,000 We can't let these farmers keep terrorizing each other. 442 00:20:41,792 --> 00:20:43,875 They want to burn each other's farms down, 443 00:20:45,083 --> 00:20:45,833 let them. 444 00:20:49,708 --> 00:20:51,458 Just a few miles away, 445 00:20:53,292 --> 00:20:54,583 in the Tenderloin district, 446 00:20:55,792 --> 00:20:57,750 Julius Schmid has been hard at work, 447 00:20:57,875 --> 00:21:00,417 trying to develop a brand new kind of condom 448 00:21:00,542 --> 00:21:01,958 made of vulcanized rubber. 449 00:21:02,042 --> 00:21:06,167 We're still mostly talking about very old fashioned 450 00:21:06,167 --> 00:21:09,792 technology involving sewing together 451 00:21:09,792 --> 00:21:11,958 bladder from goats or sheep. 452 00:21:12,042 --> 00:21:15,250 But then we get into manufacturing using rubber. 453 00:21:16,667 --> 00:21:19,750 When we think about these early used condoms, right? 454 00:21:19,875 --> 00:21:20,792 It was thick. 455 00:21:20,792 --> 00:21:22,750 It was kind of heavy. 456 00:21:22,875 --> 00:21:26,667 And one size, well, it doesn't necessarily fit all. 457 00:21:28,375 --> 00:21:30,208 You actually had to measure it to your penis 458 00:21:30,333 --> 00:21:31,958 and cut it to the right size 459 00:21:32,042 --> 00:21:35,667 before actually adding the ribbons and tying it on. 460 00:21:37,167 --> 00:21:39,292 These older condoms were reusable. 461 00:21:39,292 --> 00:21:43,292 So you would wash them and you would let them dry out 462 00:21:43,292 --> 00:21:45,500 and reuse them, put them in a box, 463 00:21:45,667 --> 00:21:48,500 and then you would use them again until they disintegrated. 464 00:21:49,875 --> 00:21:51,000 At the time, 465 00:21:51,125 --> 00:21:53,375 rubber condoms are virtually unknown. 466 00:21:53,542 --> 00:21:56,375 So instead of putting them in plain paper packaging, 467 00:21:56,500 --> 00:21:59,958 he brands them and he uses a symbol of power and virility 468 00:22:00,042 --> 00:22:01,500 taken from ancient Egypt. 469 00:22:03,833 --> 00:22:05,375 The Pharaoh, Ramses. 470 00:22:07,042 --> 00:22:09,833 Julius Schmid was very clever at marketing 471 00:22:10,000 --> 00:22:11,708 and selling his condoms. 472 00:22:12,833 --> 00:22:15,833 They also had extremely appealing graphics. 473 00:22:15,917 --> 00:22:19,667 Westerners had begun to do archeological excavations 474 00:22:19,792 --> 00:22:23,750 in Egypt, and this had sparked a real Egyptology craze. 475 00:22:23,875 --> 00:22:27,375 And so when Julius Schmid created the Ramses condom, 476 00:22:27,542 --> 00:22:29,792 he was really buying into a bigger trend. 477 00:22:31,167 --> 00:22:32,833 At the beginning of the 19th century, 478 00:22:33,000 --> 00:22:35,583 Napoleon's forces brought back a treasure trove 479 00:22:35,708 --> 00:22:38,792 of Egyptian relics, including the famed Rosetta Stone. 480 00:22:38,792 --> 00:22:42,458 It unlocked translation of ancient hieroglyphs in 1822, 481 00:22:42,542 --> 00:22:45,250 igniting a craze called Egyptomania. 482 00:22:45,375 --> 00:22:48,125 It influenced everything, from art to architecture, 483 00:22:48,125 --> 00:22:51,542 and interest remains high well into the 20th century. 484 00:22:55,083 --> 00:22:58,208 When we look at the early names for these condoms, 485 00:22:58,375 --> 00:23:01,833 they're really projecting onto non-White 486 00:23:01,917 --> 00:23:05,333 non-Christian people, an unbridled sexuality. 487 00:23:06,458 --> 00:23:08,583 So people are reading stories. 488 00:23:08,708 --> 00:23:10,958 They're seeing burlesque sketches 489 00:23:11,083 --> 00:23:14,375 and early films in which people are wearing turbines 490 00:23:14,500 --> 00:23:18,875 and there's harems, and basically this idea of orgies, 491 00:23:19,000 --> 00:23:20,500 and all this kind of fun. 492 00:23:21,625 --> 00:23:23,542 Branding and marketing is critical 493 00:23:23,667 --> 00:23:27,000 because when that consumer thinks about your business, 494 00:23:27,125 --> 00:23:28,958 you wanna have one thought coming to their mind. 495 00:23:29,042 --> 00:23:32,333 So for example, Apple computers, it's about innovation. 496 00:23:32,458 --> 00:23:34,625 For UPS, it's about being on time. 497 00:23:34,750 --> 00:23:36,375 You gotta have that one thing 498 00:23:36,500 --> 00:23:38,000 that consumers will remember you by 499 00:23:38,000 --> 00:23:40,333 in a very crowded market. 500 00:23:40,417 --> 00:23:42,083 To avoid being busted again, 501 00:23:42,208 --> 00:23:45,083 rather than selling his Ramses condoms out of his apartment, 502 00:23:45,208 --> 00:23:46,708 Schmid decentralizes, 503 00:23:46,833 --> 00:23:49,000 selling them out of a network of apartments, 504 00:23:49,000 --> 00:23:52,167 hotel rooms and back alleys, all over the city. 505 00:23:53,500 --> 00:23:55,667 Julius Schmid saw an opportunity 506 00:23:55,667 --> 00:23:57,917 and he took advantage of the opportunity. 507 00:23:59,375 --> 00:24:01,667 His condoms tended to be even more reliable. 508 00:24:01,667 --> 00:24:03,500 So if you were looking to buy a good condom, 509 00:24:03,667 --> 00:24:05,583 you bought one of his products. 510 00:24:05,708 --> 00:24:07,625 He came to the United States from Germany 511 00:24:07,625 --> 00:24:08,833 and like many immigrants, 512 00:24:09,000 --> 00:24:11,167 he built a business from the ground up 513 00:24:11,292 --> 00:24:13,542 and he was an incredible success story, 514 00:24:13,708 --> 00:24:15,833 an innovator and an entrepreneur. 515 00:24:17,208 --> 00:24:20,417 Soon, Schmid is selling nearly 100,000 condoms 516 00:24:20,542 --> 00:24:23,417 a day, but still working outside the law, 517 00:24:23,542 --> 00:24:27,167 there's no way he can expand for now. 518 00:24:32,833 --> 00:24:34,833 Condoms have been illegal for decades. 519 00:24:34,958 --> 00:24:37,333 Now booze seems headed that way too. 520 00:24:37,417 --> 00:24:40,375 And Jack Daniel's brash nephew, Lem Motlow, 521 00:24:40,542 --> 00:24:42,750 wants to implement a risky new strategy. 522 00:24:42,875 --> 00:24:47,625 Currently our warehouses are stocked at 65%. 523 00:24:47,625 --> 00:24:50,333 Now I wanna get that to 95% by the end of the year. 524 00:24:50,458 --> 00:24:51,542 Most distillers didn't think, 525 00:24:51,708 --> 00:24:52,833 well, the temperance movement, 526 00:24:52,958 --> 00:24:54,667 if it was actually going to stick. 527 00:24:54,792 --> 00:24:58,542 Lem Motlow saw it coming, and so he ramped up production. 528 00:24:58,708 --> 00:24:59,875 But we're already producing 529 00:25:00,042 --> 00:25:02,500 as much as this distillery can handle. 530 00:25:02,625 --> 00:25:03,875 Which is why I started next week, 531 00:25:04,042 --> 00:25:07,333 we'll begin diluting the mixture by 5%. 532 00:25:09,458 --> 00:25:11,000 Customer won't know the difference. 533 00:25:11,000 --> 00:25:14,458 But the quality of the production started to suffer. 534 00:25:14,542 --> 00:25:16,917 Did you run that by your uncle? 535 00:25:17,042 --> 00:25:19,500 Lem was a little less brand protective. 536 00:25:19,625 --> 00:25:22,583 Lem was more, "How do we make money off of distilling?" 537 00:25:22,708 --> 00:25:24,000 And Jack Daniel was more, 538 00:25:24,125 --> 00:25:26,375 "How do we make the best whiskey that money can make?" 539 00:25:26,500 --> 00:25:29,708 My uncle put me in charge. 540 00:25:31,000 --> 00:25:32,833 From here on in, y'all report directly to me, 541 00:25:32,958 --> 00:25:35,042 and only to me. 542 00:25:38,125 --> 00:25:39,250 Uncle Jack is many things, 543 00:25:39,375 --> 00:25:40,500 but he is a man living in the past. 544 00:25:40,667 --> 00:25:42,042 I am thinking about the future. 545 00:25:44,500 --> 00:25:48,583 From here on, our top priority is expansion. 546 00:25:56,292 --> 00:25:57,000 Get out. 547 00:25:58,875 --> 00:25:59,625 Now. 548 00:26:02,500 --> 00:26:03,167 You too, George. 549 00:26:12,417 --> 00:26:15,208 Okay, let me make this crystal clear. 550 00:26:16,750 --> 00:26:20,208 Quality is our top priority. 551 00:26:25,792 --> 00:26:27,083 You're excused for the day. 552 00:26:29,958 --> 00:26:30,667 Get out. 553 00:26:32,542 --> 00:26:33,958 Come on Jack, let's be a little bit- 554 00:26:34,042 --> 00:26:37,667 Get out! 555 00:26:55,958 --> 00:26:58,167 By 1908, six states 556 00:26:58,292 --> 00:27:00,000 have banned the sale of alcohol. 557 00:27:03,833 --> 00:27:05,833 On one part it's fear of alcohol 558 00:27:05,958 --> 00:27:07,833 as a essentially sinful thing. 559 00:27:07,958 --> 00:27:10,708 But also we are experiencing the Industrial Revolution 560 00:27:10,833 --> 00:27:12,667 and new ways of working are being developed. 561 00:27:12,667 --> 00:27:13,958 And some of the biggest enthusiasts 562 00:27:14,042 --> 00:27:16,000 behind the temperance movement are employers 563 00:27:16,167 --> 00:27:19,500 who want workers that are showing up on time, 564 00:27:19,625 --> 00:27:20,750 and that's a whole new concept, right? 565 00:27:20,875 --> 00:27:22,750 You don't just show up at work at dawn. 566 00:27:22,875 --> 00:27:25,000 Now we have this thing called the clock. 567 00:27:26,625 --> 00:27:28,167 Half the workers don't show up on time, 568 00:27:28,167 --> 00:27:30,792 the other half sort of trickle in by lunchtime. 569 00:27:30,792 --> 00:27:33,542 They kick off and go have a couple beers at noon. 570 00:27:33,667 --> 00:27:36,667 And so there's a real incentive among employers 571 00:27:36,667 --> 00:27:39,250 to promote temperance as the something 572 00:27:39,375 --> 00:27:40,750 gonna get you into heaven, 573 00:27:40,875 --> 00:27:43,000 but it's also gonna make you a more productive citizen 574 00:27:43,125 --> 00:27:45,042 in this new industrial economy. 575 00:27:47,208 --> 00:27:50,625 In 1909, North Carolina goes dry too, 576 00:27:51,458 --> 00:27:53,125 then Tennessee. 577 00:27:54,708 --> 00:27:57,000 And the changes pour fuel on another movement 578 00:27:57,000 --> 00:27:59,000 gaining steam across the country. 579 00:28:01,333 --> 00:28:05,083 Fighting for a temperance was kind of the first time 580 00:28:05,208 --> 00:28:08,417 that a lot of women enter the quasi political realm 581 00:28:08,542 --> 00:28:10,667 of organizing for a social cause. 582 00:28:12,958 --> 00:28:15,583 The argument was really that alcohol ruins homes, 583 00:28:15,708 --> 00:28:18,292 and we women are the guardians of the home 584 00:28:18,292 --> 00:28:20,458 and of morality and virtue, 585 00:28:20,542 --> 00:28:22,833 and so you should give us the vote. 586 00:28:22,958 --> 00:28:24,417 Because those are the kind of causes 587 00:28:24,542 --> 00:28:25,833 that we're gonna vote for. 588 00:28:25,917 --> 00:28:29,250 So women's suffrage is definitely tied to temperance. 589 00:28:35,583 --> 00:28:38,125 Lem Motlow pushes to sell as much Jack Daniel's 590 00:28:38,125 --> 00:28:41,417 as he can before any more states go dry, 591 00:28:41,542 --> 00:28:44,000 but his uncle has been holding him back. 592 00:28:44,125 --> 00:28:47,208 Lem, can I speak to you a second? 593 00:28:50,250 --> 00:28:50,958 It's important. 594 00:28:55,042 --> 00:28:55,833 What? 595 00:28:57,208 --> 00:29:00,458 Then, on October 9th, 1911. 596 00:29:01,750 --> 00:29:04,750 Your uncle passed away last night. 597 00:29:07,375 --> 00:29:09,542 Jack Daniel dies unexpectedly 598 00:29:09,667 --> 00:29:10,708 of blood poisoning. 599 00:29:13,125 --> 00:29:13,833 I'm sorry. 600 00:29:17,958 --> 00:29:19,250 Thanks for letting me know. 601 00:29:31,958 --> 00:29:34,000 Forged with the help of his friend and mentor, 602 00:29:34,125 --> 00:29:36,917 Nearest Green, Jack Daniel's legacy 603 00:29:37,042 --> 00:29:40,500 is the best selling American whiskey in the world, 604 00:29:40,500 --> 00:29:43,833 available in over 170 countries. 605 00:29:43,958 --> 00:29:46,000 And it helped transform distilling 606 00:29:46,125 --> 00:29:50,000 from barnyard moonshine to a respected American tradition. 607 00:29:51,500 --> 00:29:54,375 Jack Daniel's makes things cheaper and more available. 608 00:29:55,708 --> 00:29:57,667 You don't have to go out to the juke joint 609 00:29:57,792 --> 00:29:59,958 or to wherever, to get a whiskey. 610 00:30:00,042 --> 00:30:04,042 You get it in your store and it looks legitimate, 611 00:30:04,208 --> 00:30:08,000 just as legitimate as your tomato soup. 612 00:30:09,417 --> 00:30:11,500 Now, the threat of prohibition 613 00:30:11,500 --> 00:30:13,250 is looming closer than ever. 614 00:30:13,375 --> 00:30:17,083 Lem Motlow is in charge, and he's prepared to risk anything, 615 00:30:17,208 --> 00:30:19,750 including the brand's quality and reputation, 616 00:30:19,875 --> 00:30:22,125 to cash in while he can, 617 00:30:22,125 --> 00:30:24,417 desperate to keep the company alive. 618 00:30:31,958 --> 00:30:34,500 While anti-alcohol further rises, 619 00:30:34,500 --> 00:30:36,000 the Black Patch Tobacco Wars 620 00:30:36,125 --> 00:30:38,667 have now dragged on for four years. 621 00:30:42,625 --> 00:30:45,083 All right, what else we got? 622 00:30:46,542 --> 00:30:48,333 And Buck Duke's refusal to negotiate 623 00:30:48,417 --> 00:30:51,083 has put him and his American Tobacco empire 624 00:30:52,000 --> 00:30:53,792 under a microscope. 625 00:30:57,542 --> 00:30:58,333 Clear the room. 626 00:31:10,542 --> 00:31:12,208 What is this? 627 00:31:13,833 --> 00:31:14,958 We've been indicted 628 00:31:15,042 --> 00:31:17,250 for violation of the Sherman Antitrust Act. 629 00:31:20,458 --> 00:31:22,667 The Sherman Act is designed to keep companies 630 00:31:22,667 --> 00:31:24,958 from manipulating or fixing prices. 631 00:31:25,042 --> 00:31:27,083 It was sponsored by Senator John Sherman, 632 00:31:27,208 --> 00:31:29,167 all the way back in 1890. 633 00:31:29,292 --> 00:31:31,750 But after years of not enforcing it, 634 00:31:31,875 --> 00:31:34,125 a new wave of progressive politicians 635 00:31:34,125 --> 00:31:36,667 are using it to go after monopolies. 636 00:31:36,792 --> 00:31:39,958 With the presidency of Teddy Roosevelt, 637 00:31:40,083 --> 00:31:43,333 who saw himself as a progressive and a trust buster, 638 00:31:43,500 --> 00:31:45,667 the federal government began to turn its attention 639 00:31:45,833 --> 00:31:48,542 to what people saw as the abuses 640 00:31:48,667 --> 00:31:50,833 of these giant corporations. 641 00:31:50,958 --> 00:31:52,417 Monopolies come to be seen, 642 00:31:52,542 --> 00:31:55,833 particularly by progressive and federal reformers, 643 00:31:55,958 --> 00:31:58,542 as harming consumers, as harming workers, 644 00:31:58,708 --> 00:32:00,292 as preventing the competition 645 00:32:00,292 --> 00:32:02,583 that the American economy would need 646 00:32:02,708 --> 00:32:05,292 to grow in a robust way 647 00:32:05,417 --> 00:32:08,083 and really to concentrate the spoils of industrial activity 648 00:32:08,208 --> 00:32:10,125 in the hands a select few. 649 00:32:10,250 --> 00:32:11,875 The government is suing us. 650 00:32:18,417 --> 00:32:19,667 While the government cracks down 651 00:32:19,833 --> 00:32:21,042 on American Tobacco, 652 00:32:27,792 --> 00:32:30,500 Julius Schmid dodges anti-vice laws 653 00:32:30,625 --> 00:32:32,042 tied to the temperance movement. 654 00:32:32,167 --> 00:32:34,958 His rubber condoms are spreading like wildfire, 655 00:32:35,042 --> 00:32:36,792 but selling them is illegal. 656 00:32:36,792 --> 00:32:38,875 And he's already been arrested once. 657 00:32:39,000 --> 00:32:40,958 I think to be the type of person 658 00:32:41,042 --> 00:32:43,375 to run an illegal business, 659 00:32:43,500 --> 00:32:46,167 you really have to be driven by this belief 660 00:32:46,167 --> 00:32:50,083 that your product or service is so needed 661 00:32:50,208 --> 00:32:54,000 or desired by a community or a population, 662 00:32:54,125 --> 00:32:58,333 that it's worth it to run this illegal enterprise. 663 00:32:58,500 --> 00:33:01,708 Production management will go here, by the windows. 664 00:33:01,833 --> 00:33:02,958 Makes sense. 665 00:33:03,042 --> 00:33:04,792 Despite keeping a low profile, 666 00:33:04,792 --> 00:33:06,917 Schmid is determined to bring his condoms 667 00:33:07,042 --> 00:33:08,542 into the industrial age, 668 00:33:08,708 --> 00:33:11,833 with a brilliant plan to cover his trail. 669 00:33:11,958 --> 00:33:14,500 And, as requested, the... 670 00:33:17,042 --> 00:33:19,708 specialty items 671 00:33:20,708 --> 00:33:23,667 will be produced solely down here, 672 00:33:23,792 --> 00:33:25,625 on the basement level. 673 00:33:28,500 --> 00:33:30,833 Schmid invests all his ill-gotten gains 674 00:33:31,000 --> 00:33:32,625 into a state-of-the-art factory 675 00:33:32,750 --> 00:33:36,542 that'll produce rubber gaskets used to seal perfume bottles. 676 00:33:36,667 --> 00:33:39,125 Don't show these to anyone. 677 00:33:40,917 --> 00:33:41,625 Understood. 678 00:33:43,375 --> 00:33:46,167 With a secret facility for producing condoms. 679 00:33:46,292 --> 00:33:49,250 Schmid is certainly a great example 680 00:33:49,375 --> 00:33:53,125 of an American entrepreneur, innovator, 681 00:33:54,250 --> 00:33:58,958 who combines this spirit of capitalism 682 00:33:59,042 --> 00:34:01,750 with willingness to try new things. 683 00:34:03,875 --> 00:34:05,000 Schmid opens his factory 684 00:34:05,125 --> 00:34:06,625 in Little Falls, New Jersey, 685 00:34:08,250 --> 00:34:10,250 and begins advertising his condoms 686 00:34:10,375 --> 00:34:12,667 as French goods and medicines. 687 00:34:15,167 --> 00:34:16,500 Someone like Julius Schmid, 688 00:34:16,500 --> 00:34:18,833 who is marketing and selling condoms, 689 00:34:18,917 --> 00:34:22,333 he could have argued that he was doing a public service 690 00:34:22,417 --> 00:34:25,042 for Americans by protecting them against disease. 691 00:34:26,208 --> 00:34:28,833 When you think about how a factory, 692 00:34:28,917 --> 00:34:34,000 employing hundreds of people, making an illegal object, 693 00:34:34,500 --> 00:34:38,167 manages to stay out of the courts, out of the newspapers. 694 00:34:38,333 --> 00:34:39,625 There is really only one answer 695 00:34:39,750 --> 00:34:42,708 and that's, they're clearly very popular. 696 00:34:42,833 --> 00:34:45,000 Schmid can now supply all the condoms 697 00:34:45,000 --> 00:34:47,292 New York City needs 10 times over, 698 00:34:49,208 --> 00:34:51,417 if he could keep skirting the law. 699 00:35:03,625 --> 00:35:06,667 Despite his best efforts, Adolphus Busch's attempt 700 00:35:06,667 --> 00:35:10,167 to differentiate beer from liquor is failing. 701 00:35:10,292 --> 00:35:12,333 It was already definitely affecting the business. 702 00:35:12,458 --> 00:35:13,958 It was affecting every brewery. 703 00:35:14,042 --> 00:35:16,167 Some breweries were shutting down. 704 00:35:16,292 --> 00:35:17,208 I'm sorry, son. 705 00:35:19,042 --> 00:35:21,125 Temperance is not going away. 706 00:35:21,125 --> 00:35:22,167 It's inevitable. 707 00:35:26,208 --> 00:35:28,625 Come on, America will never go dry. 708 00:35:31,292 --> 00:35:32,458 Don't be so sure. 709 00:35:37,542 --> 00:35:40,292 At a time when the life expectancy rate was 44, 710 00:35:40,292 --> 00:35:44,500 and years of hard work and no doubt drinking 711 00:35:44,500 --> 00:35:48,708 had taken its toll, his health began to fail. 712 00:35:50,292 --> 00:35:53,708 11 states have now banned the sale of alcohol 713 00:35:53,833 --> 00:35:56,917 and Anheuser-Busch is forced to close down warehouses 714 00:35:57,042 --> 00:35:59,000 and saloons in every one of them. 715 00:35:59,167 --> 00:36:00,125 Drink up 716 00:36:01,667 --> 00:36:02,750 while you still can. 717 00:36:05,667 --> 00:36:07,250 Prohibition is threatening 718 00:36:07,375 --> 00:36:10,250 to bring the entire company crashing down. 719 00:36:23,208 --> 00:36:24,458 Nearly a dozen states have gone dry, 720 00:36:24,542 --> 00:36:27,375 with more threatening to ban alcohol every day. 721 00:36:28,750 --> 00:36:31,417 Anti-vice crusaders are calling for national prohibition, 722 00:36:32,750 --> 00:36:35,125 which would be a disaster for Anheuser-Busch. 723 00:36:35,125 --> 00:36:38,083 You have to think beyond just one person 724 00:36:38,208 --> 00:36:39,583 and the brand itself, 725 00:36:39,708 --> 00:36:43,000 these employ literally the entire town. 726 00:36:43,125 --> 00:36:45,333 And so they were very nervous 727 00:36:45,458 --> 00:36:47,667 as to how prohibition was going to shut that down 728 00:36:47,667 --> 00:36:50,333 because it essentially would kill the economy 729 00:36:50,417 --> 00:36:51,875 for their communities as well. 730 00:36:52,000 --> 00:36:53,375 So great pressure. 731 00:36:53,500 --> 00:36:56,542 And I can't imagine how stressful that might have been. 732 00:36:58,042 --> 00:37:00,833 I can't imagine being in the shoes of someone 733 00:37:01,000 --> 00:37:05,167 who put your blood, sweat, and tears into building a company 734 00:37:05,167 --> 00:37:08,750 and the government changes the rules midway 735 00:37:08,875 --> 00:37:11,167 and it all might be taken away. 736 00:37:11,292 --> 00:37:14,125 That is a whole added pressure 737 00:37:14,125 --> 00:37:17,000 that most entrepreneurs, fortunately, 738 00:37:17,167 --> 00:37:18,417 don't have to deal with. 739 00:37:25,458 --> 00:37:27,583 Have you seen my father? 740 00:37:31,250 --> 00:37:32,833 What? 741 00:37:34,208 --> 00:37:35,667 What is it? - Son, 742 00:37:35,833 --> 00:37:36,875 I'm sorry. 743 00:37:40,125 --> 00:37:40,833 He passed. 744 00:37:50,375 --> 00:37:52,833 On October 10th, 1913, 745 00:37:52,958 --> 00:37:56,083 the man who revolutionized the American brewing industry, 746 00:37:56,208 --> 00:37:57,500 dies of a heart attack. 747 00:38:01,250 --> 00:38:02,625 Memorials are held 748 00:38:02,625 --> 00:38:05,000 at all 36 remaining Anheuser-Busch facilities 749 00:38:05,167 --> 00:38:06,667 across the country, 750 00:38:06,833 --> 00:38:08,625 with countless mourners in attendance. 751 00:38:08,625 --> 00:38:13,417 How Adolphus Busch is not spoken in the same realm 752 00:38:13,542 --> 00:38:15,417 with all of those other business titans 753 00:38:15,542 --> 00:38:19,250 of the late 19th, early 20th century, is beyond me. 754 00:38:21,292 --> 00:38:23,708 He was employing thousands of people 755 00:38:23,833 --> 00:38:26,667 in the city of St. Louis and across the country. 756 00:38:26,667 --> 00:38:31,333 His payroll was huge and it wasn't just in the brewing. 757 00:38:31,458 --> 00:38:33,750 It was in the bottling, it was in the driving, 758 00:38:33,875 --> 00:38:36,833 it was in the design, it was in farming. 759 00:38:36,917 --> 00:38:40,833 It was in manufacturing railroad cars and other machinery. 760 00:38:41,000 --> 00:38:42,875 Will it be long enough to keep the beer fresh? 761 00:38:43,042 --> 00:38:47,208 He just, across the board, had this vertical integration 762 00:38:47,333 --> 00:38:49,542 that other giants of the day have. 763 00:38:51,583 --> 00:38:53,542 When he dies, Adolphus Busch 764 00:38:53,708 --> 00:38:57,667 leaves behind a personal fortune of nearly $60 million, 765 00:38:57,667 --> 00:39:01,417 the equivalent of 1.6 billion in today's money. 766 00:39:01,542 --> 00:39:04,542 We are talking about thousands of bottles a day. 767 00:39:04,667 --> 00:39:07,042 The reason that Adolphus Busch probably isn't studied 768 00:39:07,167 --> 00:39:10,042 with the great captains of industry of his day, 769 00:39:10,167 --> 00:39:11,833 like Rockefeller and Carnegie, 770 00:39:11,917 --> 00:39:14,792 is simply because of the product he produced. 771 00:39:14,917 --> 00:39:18,583 Steel and oil themselves are uncontroversial, 772 00:39:18,708 --> 00:39:21,000 even if some of the business methods used 773 00:39:21,125 --> 00:39:22,875 by the tycoon's work. 774 00:39:23,000 --> 00:39:26,542 Here was a product that had a social stigma, 775 00:39:26,667 --> 00:39:29,292 and it's probably not an easy sell 776 00:39:29,292 --> 00:39:31,792 for the textbooks or the teachers of the land 777 00:39:31,917 --> 00:39:35,500 to teach youngsters about somebody who made beer 778 00:39:35,625 --> 00:39:37,917 as somebody that they should emulate. 779 00:39:42,042 --> 00:39:44,083 August Busch is suddenly on his own. 780 00:39:44,208 --> 00:39:46,500 And the wave of nationwide prohibition 781 00:39:46,500 --> 00:39:48,750 is getting stronger every day. 782 00:39:48,875 --> 00:39:50,500 He took the company 783 00:39:50,625 --> 00:39:53,542 at a moment where his father had built it up 784 00:39:53,708 --> 00:39:55,708 to one of the two largest breweries in the world, 785 00:39:55,833 --> 00:40:00,708 and then this monster, this barbarian at the gate shows up, 786 00:40:00,833 --> 00:40:05,333 and its August's responsibility to try to usher the company 787 00:40:05,417 --> 00:40:08,333 through these really treacherous waters. 788 00:40:18,958 --> 00:40:20,542 While anti-vice crusaders 789 00:40:20,667 --> 00:40:22,708 lobby to shut down the brewing industry, 790 00:40:22,875 --> 00:40:25,333 American Tobacco is fighting federal regulators 791 00:40:25,500 --> 00:40:27,000 on a different front. 792 00:40:27,125 --> 00:40:31,167 Duke's monopolistic practices culminate in a suit 793 00:40:31,167 --> 00:40:33,375 brought by the Department of Justice, 794 00:40:33,500 --> 00:40:35,208 and American Tobacco's lawyers 795 00:40:35,333 --> 00:40:39,667 basically say that American Tobacco Corporation is a person 796 00:40:39,792 --> 00:40:42,708 and as such, it ought to have all of the rights 797 00:40:42,833 --> 00:40:46,917 that an individual does to be free of state regulation. 798 00:40:55,333 --> 00:40:57,833 Buck Duke has fought the case tooth and nail, 799 00:40:57,958 --> 00:40:59,833 all the way to the Supreme Court. 800 00:41:14,708 --> 00:41:15,583 Just tell me. 801 00:41:19,458 --> 00:41:23,042 The Supreme Court confirmed the American Tobacco Company 802 00:41:23,167 --> 00:41:25,667 was in violation of the Sherman Antitrust Act 803 00:41:25,667 --> 00:41:27,958 and engaging in restraint of trade 804 00:41:28,042 --> 00:41:30,667 and non-competitive monopolistic behavior. 805 00:41:32,042 --> 00:41:34,000 And that meant that it was going to be broken up 806 00:41:34,125 --> 00:41:35,917 into its constituent parts. 807 00:41:38,417 --> 00:41:40,000 That will ultimately result 808 00:41:40,125 --> 00:41:43,583 in the dissolution of American Tobacco, 809 00:41:43,708 --> 00:41:45,875 incidentally, on the very same day 810 00:41:46,000 --> 00:41:49,000 that Rockefeller's standard oil monopoly is also dissolved. 811 00:41:49,167 --> 00:41:52,083 Duke is obviously quite upset and in response, 812 00:41:52,208 --> 00:41:56,208 he basically turns his back on the US tobacco industry. 813 00:41:57,375 --> 00:42:00,667 American Tobacco is split into three companies, 814 00:42:00,667 --> 00:42:05,000 Liggett and Myers, Lorillard, and R. J. Reynolds, 815 00:42:05,125 --> 00:42:07,333 which will eventually produce Paul Malls, 816 00:42:07,417 --> 00:42:09,458 Newports and Camels. 817 00:42:09,542 --> 00:42:11,708 Duke devotes the rest of his life 818 00:42:11,875 --> 00:42:14,708 to other ventures and to philanthropy. 819 00:42:14,875 --> 00:42:17,917 He buys Trinity College and endows it as Duke University. 820 00:42:18,042 --> 00:42:20,458 He also starts the firm, Duke Energy, 821 00:42:20,542 --> 00:42:22,500 which provides hydroelectric power 822 00:42:22,667 --> 00:42:24,583 to North Carolina and Virginia. 823 00:42:26,500 --> 00:42:27,833 For better or worse, 824 00:42:27,958 --> 00:42:30,500 Buck Duke is the father of the modern cigarette, 825 00:42:30,625 --> 00:42:32,500 transforming it from a novelty 826 00:42:32,500 --> 00:42:34,750 into the dominant form of tobacco. 827 00:42:34,875 --> 00:42:38,750 And by the time of his death on October 10th, 1925, 828 00:42:38,875 --> 00:42:41,833 he's the third richest man on the planet. 829 00:42:41,958 --> 00:42:44,833 You can't be too sympathetic, because when he dies, 830 00:42:44,917 --> 00:42:47,917 he is one of the wealthiest men in the world. 831 00:42:48,042 --> 00:42:51,292 So if there's compensations for having been broken, 832 00:42:51,417 --> 00:42:53,542 he can cry all the way to the bank, 833 00:42:53,667 --> 00:42:55,083 as the expression goes. 834 00:43:03,208 --> 00:43:04,542 Jack Daniel's 835 00:43:04,667 --> 00:43:06,958 is one of the biggest distilleries in the country 836 00:43:07,042 --> 00:43:10,458 and Lem Motlow's using all its manufacturing might 837 00:43:10,542 --> 00:43:12,875 to crank out whiskey while he still can. 838 00:43:13,042 --> 00:43:16,000 Lem Motlow saw the temperance movement coming, 839 00:43:16,167 --> 00:43:19,333 and he didn't think it was actually going to stick. 840 00:43:19,417 --> 00:43:21,708 There's no way the United States 841 00:43:21,833 --> 00:43:24,458 was going to cut out that much of their budget 842 00:43:24,542 --> 00:43:26,542 by eliminating liquor sales. 843 00:43:26,708 --> 00:43:28,042 And so he ramped up production. 844 00:43:28,208 --> 00:43:32,500 He thought, "There's no way we are going to get shut down." 845 00:43:34,417 --> 00:43:35,958 You wanted to see me. 846 00:43:36,042 --> 00:43:38,958 Days of the five-day work week are over. 847 00:43:40,375 --> 00:43:42,583 I need you and everyone else to work around the clock, 848 00:43:42,708 --> 00:43:44,500 at night's, weekends, whatever. 849 00:43:44,500 --> 00:43:46,250 It's a lot of overtime. 850 00:43:46,375 --> 00:43:47,333 I'll pay. 851 00:43:47,417 --> 00:43:49,417 You can take a calculated risk 852 00:43:49,542 --> 00:43:52,333 when you really know your market. 853 00:43:52,458 --> 00:43:54,042 You need to be decisive. 854 00:43:54,167 --> 00:43:56,375 And I think the best entrepreneurs 855 00:43:56,500 --> 00:43:58,542 really have a fire inside of them, 856 00:43:58,708 --> 00:44:00,833 and I think that fire 857 00:44:00,958 --> 00:44:05,042 can get a person through all the adversities 858 00:44:05,167 --> 00:44:07,500 and all the setbacks that can happen. 859 00:44:07,500 --> 00:44:09,292 It does take a special kind of risk taker 860 00:44:09,292 --> 00:44:10,792 because you never know 861 00:44:10,792 --> 00:44:12,875 when the government's gonna come in to shut you down. 862 00:44:13,042 --> 00:44:14,750 Can I ask what this is about? 863 00:44:16,708 --> 00:44:17,625 Temperance. 864 00:44:18,958 --> 00:44:20,500 Prohibition, going dry, whatever you wanna call it, 865 00:44:20,667 --> 00:44:24,583 it's coming, and when it does, no going back. 866 00:44:24,708 --> 00:44:25,708 You need to increase production. 867 00:44:25,875 --> 00:44:27,667 Push the men as hard as you need to. 868 00:44:27,833 --> 00:44:29,208 If they complain? 869 00:44:32,042 --> 00:44:33,833 Fire 'em. 870 00:44:33,917 --> 00:44:35,833 Even though Carrie Nation's crusaders 871 00:44:35,958 --> 00:44:38,292 are pushing to ban alcohol nationwide, 872 00:44:40,125 --> 00:44:44,125 Lem starts pumping out 300 gallons of Jack Daniel's a day 873 00:44:45,333 --> 00:44:47,000 and adds new brands to the line. 874 00:44:48,417 --> 00:44:51,375 Lem was always a strategic business minded person. 875 00:44:51,542 --> 00:44:53,333 Hey, walk with purpose. 876 00:44:53,500 --> 00:44:54,667 Don't saunter. 877 00:44:54,667 --> 00:44:56,042 It was his idea to go into brandy. 878 00:44:56,167 --> 00:44:59,333 He did release a kind of lower tier brand of whiskey. 879 00:45:00,958 --> 00:45:02,667 Lem selling his own name brand whiskey 880 00:45:02,833 --> 00:45:05,333 and a new peach brandy to maximize sales 881 00:45:05,458 --> 00:45:07,500 while liquor's still legal. 882 00:45:07,500 --> 00:45:11,083 Then, on June 18th, 1914, 883 00:45:13,833 --> 00:45:17,083 a chain of events in Europe leads to a conflict 884 00:45:17,208 --> 00:45:20,042 that'll erupt into the First World War. 885 00:45:20,167 --> 00:45:21,125 Into that! 886 00:45:22,875 --> 00:45:24,083 Move, move. 887 00:45:26,625 --> 00:45:28,042 Go! 888 00:45:30,208 --> 00:45:31,500 Gas! 889 00:45:36,792 --> 00:45:37,667 They don't know it yet, 890 00:45:37,667 --> 00:45:39,500 but it'll be a turning point 891 00:45:39,625 --> 00:45:42,000 for the battle for America's soul 892 00:45:42,125 --> 00:45:46,167 and an opportunity for a whole new empire of vice. 893 00:46:07,208 --> 00:46:09,500 After three years of fighting in Europe, 894 00:46:09,667 --> 00:46:11,792 on April 4th, 1917, 895 00:46:11,792 --> 00:46:14,417 the United States finally enters World War I. 896 00:46:16,542 --> 00:46:19,917 Soon, over 4 million troops are headed overseas, 897 00:46:20,042 --> 00:46:22,333 but they're missing a key piece of equipment. 898 00:46:22,458 --> 00:46:25,167 The irony of it all is when you think about war, 899 00:46:25,292 --> 00:46:27,167 we wouldn't send our troops into battle 900 00:46:27,292 --> 00:46:30,500 without armor, gear, bulletproof vest. 901 00:46:30,625 --> 00:46:34,667 And the condom was like the very first bulletproof vest, 902 00:46:34,667 --> 00:46:36,833 if you know what I'm saying. 903 00:46:36,958 --> 00:46:39,625 The truth is people have always had sex, 904 00:46:39,625 --> 00:46:41,667 people will always have sex. 905 00:46:41,667 --> 00:46:44,208 The goal should have been to provide these men 906 00:46:44,333 --> 00:46:47,333 with protection, but there were concerns 907 00:46:47,500 --> 00:46:49,792 about the morality of young men 908 00:46:49,917 --> 00:46:52,375 engaging in sex outside of wedlock, 909 00:46:52,500 --> 00:46:56,000 especially with women who engaged in sex for pay, 910 00:46:56,125 --> 00:46:58,833 who might infect them with syphilis or gonorrhea. 911 00:46:58,958 --> 00:47:01,750 And so they emphasized the idea of abstinence 912 00:47:01,875 --> 00:47:03,792 or continent, as they called it. 913 00:47:07,958 --> 00:47:10,250 Now, Julius Schmid sees an opportunity 914 00:47:10,375 --> 00:47:12,667 to finally sell his revolutionary 915 00:47:12,667 --> 00:47:14,042 product above board. 916 00:47:14,167 --> 00:47:16,792 Hi, yes, is this the office of the quartermaster? 917 00:47:18,167 --> 00:47:22,667 I manufacture a highly specialized life-saving product 918 00:47:22,792 --> 00:47:24,875 that can protect our troops in Europe. 919 00:47:25,000 --> 00:47:27,292 Condoms, rubber condoms. 920 00:47:29,708 --> 00:47:32,083 Yes, this is a serious inquiry. 921 00:47:32,208 --> 00:47:35,333 Americans, in the early 20th century 922 00:47:35,458 --> 00:47:39,375 have their own cultural and religious and moral frameworks 923 00:47:39,542 --> 00:47:41,375 for thinking about sexuality. 924 00:47:41,500 --> 00:47:45,417 So the idea that they would supply soldiers 925 00:47:45,542 --> 00:47:47,500 with this device 926 00:47:47,500 --> 00:47:49,833 that would enable them to have sex 927 00:47:49,917 --> 00:47:52,208 is really out of the question. 928 00:47:56,542 --> 00:47:57,500 The US isn't willing 929 00:47:57,667 --> 00:47:59,500 to buy Schmid's illicit goods, 930 00:48:01,167 --> 00:48:04,167 but he realizes there are over 25 other countries 931 00:48:04,167 --> 00:48:06,375 sending troops to the battlefield. 932 00:48:10,292 --> 00:48:12,542 Want you to find out which of those countries 933 00:48:12,708 --> 00:48:14,500 are supplying condoms to their troops. 934 00:48:15,875 --> 00:48:17,958 The British were engaged in this war 935 00:48:18,042 --> 00:48:20,042 for a much longer period than the Americans. 936 00:48:20,167 --> 00:48:22,458 And so they actually saw the impact 937 00:48:22,583 --> 00:48:24,667 that venereal disease had on their troops, 938 00:48:24,792 --> 00:48:26,000 and the consequences 939 00:48:26,000 --> 00:48:29,208 of not providing your troops with condoms. 940 00:48:33,583 --> 00:48:37,375 Julius Schmid was willing to provide condoms 941 00:48:37,542 --> 00:48:41,833 to the other countrymen that were fighting in World War I, 942 00:48:41,917 --> 00:48:45,208 and he was really able to grow his business 943 00:48:45,375 --> 00:48:47,292 while he waited for the United States to catch up 944 00:48:47,292 --> 00:48:49,000 with all these other countries. 945 00:48:50,333 --> 00:48:51,625 Gonorrhea and syphilis 946 00:48:51,625 --> 00:48:54,000 are the most common sexually transmitted diseases 947 00:48:54,125 --> 00:48:55,333 in World War I. 948 00:48:55,417 --> 00:48:57,833 The first results in a painful infection, 949 00:48:58,000 --> 00:48:59,833 but the second could be fatal. 950 00:48:59,917 --> 00:49:01,167 And while they're both treatable, 951 00:49:01,292 --> 00:49:02,833 recovery could take weeks, 952 00:49:02,917 --> 00:49:05,500 keeping soldiers on the sidelines. 953 00:49:05,500 --> 00:49:07,167 At any given time, 954 00:49:07,292 --> 00:49:10,000 there was about 15% of our soldiers 955 00:49:10,125 --> 00:49:11,583 who had a venereal disease. 956 00:49:11,708 --> 00:49:15,500 That's something like 18,000 men on any given day. 957 00:49:15,500 --> 00:49:17,000 Now, if you consider 958 00:49:17,000 --> 00:49:20,042 that if United States had just embraced condoms, 959 00:49:20,208 --> 00:49:22,583 perhaps World War I could have been over sooner 960 00:49:22,708 --> 00:49:25,292 because we would've had more men on the battlefield. 961 00:49:26,375 --> 00:49:29,042 By 1918, more and more American troops 962 00:49:29,167 --> 00:49:31,500 are shipping out to the front lines, 963 00:49:31,625 --> 00:49:33,625 causing a major shift at home. 964 00:49:33,625 --> 00:49:35,167 There are suddenly work shortages 965 00:49:35,292 --> 00:49:37,208 in major cities across the north 966 00:49:37,375 --> 00:49:40,042 and African Americans flock to fill the void, 967 00:49:40,208 --> 00:49:42,208 touching off the Great Migration. 968 00:49:43,417 --> 00:49:44,875 The Great Migration is a period of time, 969 00:49:45,042 --> 00:49:48,708 really from World War I to 1970, 970 00:49:48,833 --> 00:49:50,667 in which millions of African Americans 971 00:49:50,792 --> 00:49:54,333 are moving to northern cities and western cities. 972 00:49:55,542 --> 00:49:58,750 The African Americans dreams of migrating, 973 00:49:58,875 --> 00:50:02,458 going to new places, are fueled by economic conditions. 974 00:50:03,875 --> 00:50:06,250 The situation in the south has really deteriorated 975 00:50:06,375 --> 00:50:09,375 in the first decades of the 20th century. 976 00:50:09,500 --> 00:50:11,333 You still got the horrific experience 977 00:50:11,458 --> 00:50:13,042 of African Americans or sharecropping 978 00:50:13,167 --> 00:50:14,750 and tenant farmers. 979 00:50:16,042 --> 00:50:18,417 You have the reemergence of the second Ku Klux Klan. 980 00:50:18,542 --> 00:50:20,083 And then you've got voter restrictions, 981 00:50:20,208 --> 00:50:21,542 which are really tightening it down 982 00:50:21,708 --> 00:50:25,083 on the ability of African Americans to vote in the south. 983 00:50:25,208 --> 00:50:27,750 And so African Americans are just fed up and they leave. 984 00:50:29,250 --> 00:50:32,333 During World War I, factories need laborers 985 00:50:32,417 --> 00:50:36,167 because during a war, immigration slows down, 986 00:50:36,167 --> 00:50:38,125 those jobs are available for African Americans, 987 00:50:38,250 --> 00:50:39,875 really for the first time. 988 00:50:40,042 --> 00:50:41,542 During World War I alone, 989 00:50:41,667 --> 00:50:44,583 nearly half a million African Americans move north 990 00:50:44,708 --> 00:50:47,708 and a million more follow over the next decade. 991 00:50:47,833 --> 00:50:52,792 By 1920, New York's black population will increase by 66%, 992 00:50:53,875 --> 00:50:57,375 with 200,000 people settling in the neighborhood of Harlem. 993 00:50:58,875 --> 00:51:01,333 And in one tenement, a recent immigrant 994 00:51:01,417 --> 00:51:04,583 from the West Indies named Stephanie St. Clair 995 00:51:04,708 --> 00:51:06,792 is struggling to make ends meet. 996 00:51:14,458 --> 00:51:15,250 Hey, hey. 997 00:51:20,708 --> 00:51:22,667 That's it you're out. 998 00:51:22,667 --> 00:51:23,583 I paid my rent. 999 00:51:23,708 --> 00:51:24,417 Not on time. 1000 00:51:25,625 --> 00:51:28,333 Stephanie St. Clair is born in the 1890s 1001 00:51:28,458 --> 00:51:30,917 in the French Caribbean in Guadeloupe. 1002 00:51:31,042 --> 00:51:33,125 She makes her way to New York City 1003 00:51:33,125 --> 00:51:36,542 with dreams of economic stability. 1004 00:51:36,667 --> 00:51:38,125 She's really ambitious. 1005 00:51:38,250 --> 00:51:39,583 You can't do this. 1006 00:51:41,167 --> 00:51:44,417 Hey, hey, get away from that. 1007 00:51:44,542 --> 00:51:49,250 She is working as the domestic worker or as a seamstress. 1008 00:51:49,375 --> 00:51:52,667 And this is not the type of job that any black woman wants. 1009 00:51:52,667 --> 00:51:56,000 This is an occupation that you can barely make rent. 1010 00:51:56,125 --> 00:51:57,833 Where am I supposed to go? 1011 00:51:57,958 --> 00:52:00,000 It's not my problem. 1012 00:52:06,833 --> 00:52:08,167 Already destitute, 1013 00:52:08,167 --> 00:52:10,458 St. Clair is now homeless as well. 1014 00:52:13,208 --> 00:52:14,708 - All right. - All right. 1015 00:52:14,833 --> 00:52:15,833 Next. 1016 00:52:15,917 --> 00:52:17,708 Then we get 4-5-6. 1017 00:52:17,833 --> 00:52:20,125 4-5-6, uh-huh. 1018 00:52:20,125 --> 00:52:21,917 Then you get 6-2-2. 1019 00:52:22,042 --> 00:52:24,333 6-2-2, okay. 1020 00:52:24,458 --> 00:52:26,167 She doesn't know it yet, 1021 00:52:26,292 --> 00:52:28,667 but a game she discovers in Central Park 1022 00:52:28,792 --> 00:52:32,083 will make her one of the richest women in America, 1023 00:52:32,208 --> 00:52:34,292 and eventually, give rise to an industry 1024 00:52:34,292 --> 00:52:39,000 worth $105 billion, the state lotto system. 1025 00:52:39,125 --> 00:52:41,500 But it'll also put her on a collision course 1026 00:52:43,042 --> 00:52:44,708 with the New York mafia. 1027 00:52:50,458 --> 00:52:52,125 It's the 1910s. 1028 00:52:53,083 --> 00:52:55,083 The Yankees have just moved to town. 1029 00:52:55,208 --> 00:52:57,625 Motor cars compete with horses for space. 1030 00:52:57,625 --> 00:53:00,000 It's the industrial capital of the nation. 1031 00:53:00,167 --> 00:53:02,542 But in Harlem, there's an underground, 1032 00:53:02,708 --> 00:53:03,792 hidden in plain sight. 1033 00:53:04,958 --> 00:53:06,000 Give me 500, will you? 1034 00:53:06,000 --> 00:53:07,333 You want 500? 1035 00:53:07,417 --> 00:53:10,042 Harlem becomes a kind of vice zone, 1036 00:53:10,167 --> 00:53:13,333 whether it's alcohol, prostitution, gambling. 1037 00:53:13,458 --> 00:53:15,667 Some of that is the result 1038 00:53:15,792 --> 00:53:19,458 of the practices of the New York Police Department. 1039 00:53:19,542 --> 00:53:22,333 Sort of letting the city know that certain things 1040 00:53:22,417 --> 00:53:23,542 will be tolerated in Harlem 1041 00:53:23,667 --> 00:53:25,417 that won't be tolerated elsewhere. 1042 00:53:25,542 --> 00:53:27,417 And in fact, in many instances, 1043 00:53:27,542 --> 00:53:29,375 local police are collecting bribes 1044 00:53:29,500 --> 00:53:31,708 from illegal activities that are going in Harlem. 1045 00:53:32,875 --> 00:53:35,500 New York City was overrun with corruption. 1046 00:53:35,625 --> 00:53:37,875 For instance, you wanted to leave your push cart 1047 00:53:38,000 --> 00:53:39,375 on the lower east side, 1048 00:53:39,542 --> 00:53:41,375 technically only supposed to keep it there for 15 minutes, 1049 00:53:41,500 --> 00:53:43,958 they paid a 25 cent bribe to keep it there all day. 1050 00:53:44,083 --> 00:53:47,167 There was no overnight parking allowed in New York City 1051 00:53:47,167 --> 00:53:50,000 because people would use the bathroom underneath it. 1052 00:53:50,000 --> 00:53:51,833 You bribed a cop to park. 1053 00:53:51,958 --> 00:53:55,208 You bribed a cop to keep your saloon open after midnight. 1054 00:53:55,375 --> 00:53:57,167 You bribed a cop to look the other way 1055 00:53:57,167 --> 00:53:58,792 at the door of your brothel. 1056 00:53:58,917 --> 00:54:02,333 It's a lawless world, fraught with danger, 1057 00:54:02,458 --> 00:54:03,958 and full of possibilities. 1058 00:54:05,333 --> 00:54:07,458 So, because people don't have access 1059 00:54:07,542 --> 00:54:11,000 to opportunities in the aboveground economy, 1060 00:54:11,000 --> 00:54:12,833 a lot of residents of Harlem 1061 00:54:12,958 --> 00:54:16,333 seek out economic mobility in an underground economy, 1062 00:54:16,458 --> 00:54:19,083 doing things outside of the law. 1063 00:54:21,167 --> 00:54:22,042 How you doing, brother? 1064 00:54:22,167 --> 00:54:24,167 Can I get a 7-1-9? 1065 00:54:24,167 --> 00:54:26,083 Okay, 7-1-9. 1066 00:54:26,208 --> 00:54:26,875 That's it? - Yeah, that's it. 1067 00:54:27,000 --> 00:54:28,083 Okay, cool. 1068 00:54:28,208 --> 00:54:29,625 Appreciate you. 1069 00:54:29,625 --> 00:54:31,667 The heartbeat of Harlem's illicit economy 1070 00:54:31,667 --> 00:54:35,500 is an illegal lottery game known as a numbers racket. 1071 00:54:35,500 --> 00:54:37,542 People can play for as little as a penny, 1072 00:54:37,667 --> 00:54:40,333 and almost everyone in town does. 1073 00:54:40,458 --> 00:54:44,208 The game is also known as the poor man's lottery. 1074 00:54:44,375 --> 00:54:49,750 Players selected three digits between zero and 999. 1075 00:54:49,875 --> 00:54:51,208 The winning three digit number 1076 00:54:51,375 --> 00:54:53,708 is selected from each day's newspaper, 1077 00:54:53,833 --> 00:54:56,208 randomly pulled from published interest rates, 1078 00:54:56,375 --> 00:54:58,208 stock market closing numbers, 1079 00:54:58,375 --> 00:55:00,708 even the results of horse races. 1080 00:55:00,833 --> 00:55:03,333 And the numbers racket isn't just the lottery, 1081 00:55:03,458 --> 00:55:06,125 it's Harlem's defacto underground bank. 1082 00:55:06,250 --> 00:55:07,125 You have it going, all right, buddy? 1083 00:55:07,125 --> 00:55:08,500 Thanks a lot, appreciate it. 1084 00:55:08,625 --> 00:55:10,625 It was difficult if not impossible 1085 00:55:10,625 --> 00:55:14,333 for Black arrivals in New York to access the banking system. 1086 00:55:14,458 --> 00:55:16,542 So if you want to start a business, 1087 00:55:16,667 --> 00:55:19,042 it is going to be very, very unlikely 1088 00:55:19,208 --> 00:55:20,458 that you're gonna get a bank loan. 1089 00:55:20,542 --> 00:55:23,208 So you need to turn to community sources 1090 00:55:23,375 --> 00:55:24,667 in order to gather up the money. 1091 00:55:24,792 --> 00:55:27,583 In some ways, this is both the stock market 1092 00:55:27,708 --> 00:55:30,375 and the banking system of Harlem. 1093 00:55:33,458 --> 00:55:36,167 Stephanie St. Clair has gone from homeless 1094 00:55:36,333 --> 00:55:38,375 to a steady job at a local numbers game 1095 00:55:38,542 --> 00:55:39,958 called a policy house. 1096 00:55:42,750 --> 00:55:45,333 I was wondering if you might be hiring? 1097 00:55:45,458 --> 00:55:47,625 I'm a quick learner and good with arithmetic. 1098 00:55:47,750 --> 00:55:50,458 $10, non-negotiable if you can start today. 1099 00:55:51,792 --> 00:55:54,125 Now, she doesn't just help run the game. 1100 00:55:54,125 --> 00:55:55,458 She also plays it. 1101 00:55:56,375 --> 00:55:57,667 How many today? 1102 00:55:57,792 --> 00:55:58,583 I'll take three. 1103 00:56:00,792 --> 00:56:03,167 And her fortunes really change 1104 00:56:03,292 --> 00:56:05,375 when her number hits. 1105 00:56:08,583 --> 00:56:11,000 And that resulted in $1,000, 1106 00:56:11,167 --> 00:56:14,167 which is a lot of money in 1923. 1107 00:56:14,292 --> 00:56:16,000 And Stephanie, she is a dreamer, 1108 00:56:16,125 --> 00:56:20,750 she's really ambitious and goes after what she wants. 1109 00:56:20,875 --> 00:56:23,542 For those who are living on the margins, 1110 00:56:23,667 --> 00:56:26,750 vices are a big part of their everyday existence, 1111 00:56:26,875 --> 00:56:30,500 and they also offer a pathway to economic success. 1112 00:56:30,500 --> 00:56:32,625 A criminal enterprise is a way 1113 00:56:32,625 --> 00:56:36,333 that people can achieve a part of the American dream. 1114 00:56:36,458 --> 00:56:37,333 There you go. 1115 00:56:46,292 --> 00:56:47,750 This is only half. 1116 00:56:49,125 --> 00:56:53,333 The numbers banker is also known as the policy banker 1117 00:56:53,458 --> 00:56:55,667 or if they're really big time, 1118 00:56:55,792 --> 00:56:58,167 meaning they have a large bank, 1119 00:56:58,167 --> 00:57:00,750 lots of money, lots of employees, 1120 00:57:00,875 --> 00:57:03,292 they're also known as the Kings of Harlem. 1121 00:57:03,417 --> 00:57:05,833 And the banker is really the central player 1122 00:57:05,958 --> 00:57:07,125 in the operation. 1123 00:57:07,250 --> 00:57:09,500 He is the one who puts up the capital, 1124 00:57:09,625 --> 00:57:11,667 to establish the bank. 1125 00:57:11,792 --> 00:57:14,083 You're the fourth one to hit today. 1126 00:57:14,208 --> 00:57:16,417 That's as much as I can give you. 1127 00:57:16,542 --> 00:57:18,250 You can't be serious. 1128 00:57:18,375 --> 00:57:19,792 It's the best I can do. 1129 00:57:20,958 --> 00:57:22,542 They're referred to by various names. 1130 00:57:22,667 --> 00:57:24,333 Sometimes they're called Policy King. 1131 00:57:24,458 --> 00:57:26,667 Sometimes they're called Numbers Barons. 1132 00:57:26,792 --> 00:57:30,000 And when they find themselves with too large a hit, 1133 00:57:30,000 --> 00:57:32,542 they'll end up not honoring every single winning bet 1134 00:57:32,667 --> 00:57:34,042 that has been placed with them. 1135 00:57:35,375 --> 00:57:37,417 I'm not leaving here without my money. 1136 00:57:38,792 --> 00:57:39,542 All of it. 1137 00:57:40,667 --> 00:57:41,500 What are you gonna do? 1138 00:57:41,625 --> 00:57:42,792 Go to the cops? 1139 00:57:46,583 --> 00:57:49,958 You bribed a cop to let your illegal numbers game go. 1140 00:57:50,042 --> 00:57:53,125 And that money was then given to the police captain 1141 00:57:53,125 --> 00:57:54,500 who gave it to the superintendent 1142 00:57:54,667 --> 00:57:56,750 who gave it to the local Tammany politician 1143 00:57:56,875 --> 00:57:59,750 and it got kicked all the way up to Boss Tweed. 1144 00:57:59,875 --> 00:58:02,500 Tammany Hall's like a synonym for corruption. 1145 00:58:02,667 --> 00:58:05,542 And you really think I'm gonna believe that you can't pay? 1146 00:58:08,417 --> 00:58:10,208 You can push around the other girls here. 1147 00:58:11,792 --> 00:58:12,542 Not me. 1148 00:58:13,792 --> 00:58:17,208 She is a risk taker and someone who is tough 1149 00:58:17,333 --> 00:58:20,000 and someone who just won't back down. 1150 00:58:22,542 --> 00:58:24,000 I don't think you hearing me. 1151 00:58:25,250 --> 00:58:26,292 Take it or leave it. 1152 00:58:32,625 --> 00:58:34,375 The experience lights a fire 1153 00:58:34,500 --> 00:58:36,667 in Stephanie St. Clair and her drive 1154 00:58:36,667 --> 00:58:38,458 will someday bring the numbers racket 1155 00:58:38,583 --> 00:58:39,708 out of the underground, 1156 00:58:39,875 --> 00:58:42,292 turn it into a government backed game 1157 00:58:42,292 --> 00:58:45,833 that generates over $100 billion a year. 1158 00:58:46,958 --> 00:58:50,083 But first she'll need to take over Harlem to do it. 1159 00:58:57,042 --> 00:58:58,917 For over 18 bloody months, 1160 00:58:59,042 --> 00:59:01,750 the US has been fighting in World War I, 1161 00:59:01,875 --> 00:59:04,000 and Julius Schmid is cashing in, 1162 00:59:04,000 --> 00:59:06,792 by supplying Allied troops with condoms. 1163 00:59:07,750 --> 00:59:11,375 While the other Allied forces were being provided condoms 1164 00:59:11,542 --> 00:59:13,667 to prevent sexual transmitted diseases, 1165 00:59:13,792 --> 00:59:15,875 Americans were suffering badly from it. 1166 00:59:16,750 --> 00:59:19,167 Then, on November 11th, 1918, 1167 00:59:19,167 --> 00:59:21,042 the war comes to an end 1168 00:59:21,167 --> 00:59:24,667 and over 2 million veterans return home to the US, 1169 00:59:24,667 --> 00:59:27,292 bringing new habits they picked up overseas. 1170 00:59:29,000 --> 00:59:31,792 While he was producing those condoms for other countries, 1171 00:59:31,917 --> 00:59:33,917 the other countrymen in that war 1172 00:59:34,042 --> 00:59:38,875 were teaching Americans about the benefits of condoms. 1173 00:59:39,000 --> 00:59:41,083 Thanks in large part of Julius Schmid, 1174 00:59:41,208 --> 00:59:43,500 the government is faced with overwhelming evidence 1175 00:59:43,500 --> 00:59:44,667 of condom success, 1176 00:59:44,792 --> 00:59:47,958 preventing sexually transmitted infections, 1177 00:59:48,042 --> 00:59:51,083 turning the tide in favor of birth control advocates 1178 00:59:51,208 --> 00:59:52,833 like Margaret Sanger. 1179 00:59:52,958 --> 00:59:54,667 Margaret Sanger was the first person 1180 00:59:54,792 --> 00:59:58,542 to open a birth control clinic in the United States. 1181 00:59:58,667 --> 01:00:00,208 She really believed birth control 1182 01:00:00,375 --> 01:00:02,208 should be the first route, 1183 01:00:02,333 --> 01:00:05,875 but the anti-vice movement was afraid of contraception 1184 01:00:06,000 --> 01:00:08,042 because they thought it facilitated vice. 1185 01:00:08,167 --> 01:00:11,000 They thought it would allow more men to go to more brothels 1186 01:00:11,167 --> 01:00:12,625 with less fear of VD. 1187 01:00:12,750 --> 01:00:14,625 And she and her husband both got hounded. 1188 01:00:14,625 --> 01:00:16,875 She was actually arrested. 1189 01:00:17,000 --> 01:00:18,542 The same year the war ends, 1190 01:00:18,708 --> 01:00:20,583 Sanger wins a landmark decision 1191 01:00:20,708 --> 01:00:22,750 in the New York State Court of Appeals. 1192 01:00:22,875 --> 01:00:25,833 Her clinic can now legally distribute condoms. 1193 01:00:25,917 --> 01:00:28,667 Condoms finally become legal with a catch. 1194 01:00:28,667 --> 01:00:31,958 Condoms are legal as a prevention against disease, 1195 01:00:32,042 --> 01:00:34,667 but they're not legal as a contraception. 1196 01:00:34,792 --> 01:00:37,833 Of course, that's a tremendously vague idea. 1197 01:00:37,917 --> 01:00:40,125 You can't tell if someone is buying the condom 1198 01:00:40,125 --> 01:00:41,667 to prevent disease 1199 01:00:41,792 --> 01:00:44,292 or they're buying the condom as a form of contraception. 1200 01:00:44,292 --> 01:00:47,708 So there tended to be a lot of moralistic discussions 1201 01:00:47,875 --> 01:00:50,167 about how people use the condoms. 1202 01:00:50,292 --> 01:00:51,292 That was really up to them. 1203 01:00:52,958 --> 01:00:56,000 Soon, nearly 30 states legalized condoms 1204 01:00:56,125 --> 01:00:58,750 and Julius Schmid's sales skyrocket, 1205 01:00:58,875 --> 01:01:01,750 generating $900,000 every year, 1206 01:01:01,875 --> 01:01:04,625 the modern day equivalent of 15 million, 1207 01:01:05,542 --> 01:01:07,000 Schmid's decades of work, 1208 01:01:07,000 --> 01:01:09,792 bringing condoms out of the shadows and into the light. 1209 01:01:09,792 --> 01:01:13,917 In the 1920s, the US birth rate drops by half, 1210 01:01:14,042 --> 01:01:16,917 preventing countless unwanted pregnancies, 1211 01:01:17,042 --> 01:01:19,958 saving thousands of lives each year 1212 01:01:20,042 --> 01:01:23,208 and earning him the nickname, the King of Condoms. 1213 01:01:23,375 --> 01:01:26,625 ♪ It's the time of our life ♪ 1214 01:01:26,750 --> 01:01:29,333 When you really think about condoms today, 1215 01:01:29,458 --> 01:01:31,833 this man played a huge role 1216 01:01:31,958 --> 01:01:36,583 in helping the United States as a society, as a nation, 1217 01:01:36,708 --> 01:01:38,750 understand the importance. 1218 01:01:39,833 --> 01:01:42,667 Condoms have created an opportunity 1219 01:01:42,792 --> 01:01:44,125 for people to make choices 1220 01:01:44,125 --> 01:01:46,208 about their bodies and their health. 1221 01:01:48,583 --> 01:01:50,792 I think that the condom 1222 01:01:50,792 --> 01:01:54,792 is actually a symbol of freedom in America. 1223 01:01:55,958 --> 01:01:57,708 Schmid's success propels condoms 1224 01:01:57,833 --> 01:02:01,167 to full nationwide legalization in 1965. 1225 01:02:02,542 --> 01:02:06,125 His business is eventually purchased by the Durex company. 1226 01:02:06,125 --> 01:02:08,750 And today the products he helped pioneer, 1227 01:02:08,875 --> 01:02:11,333 are part of a $10 billion industry. 1228 01:02:15,167 --> 01:02:17,750 While contraception is becoming more accepted, 1229 01:02:17,875 --> 01:02:20,917 the calls to ban alcohol are reaching a fever pitch. 1230 01:02:22,792 --> 01:02:24,958 Now the temperance movement saw an opportunity 1231 01:02:25,042 --> 01:02:28,250 during World War I to basically make sure 1232 01:02:28,375 --> 01:02:30,458 they not only delivered their message, 1233 01:02:30,542 --> 01:02:31,833 but now their message was wrapped 1234 01:02:32,000 --> 01:02:34,625 in a giant American flag. 1235 01:02:34,625 --> 01:02:37,625 Anti-German sentiment, during World War I 1236 01:02:37,750 --> 01:02:40,750 is converging with this prohibition sentiment 1237 01:02:40,875 --> 01:02:44,542 because as Germans are seen as kind of nefarious 1238 01:02:44,667 --> 01:02:48,000 and scary and anti-American, well, 1239 01:02:48,000 --> 01:02:51,833 they're connected in the popular imagination to beer. 1240 01:02:51,917 --> 01:02:54,667 That provides this basis for saying, "Well, 1241 01:02:54,792 --> 01:02:57,458 we need dry cities, this is a German thing, 1242 01:02:57,583 --> 01:02:59,792 and we've gotta stamp that out." 1243 01:02:59,792 --> 01:03:01,833 You have the push for constitutional limit 1244 01:03:01,958 --> 01:03:05,417 to outlaw alcohol consumption or out sale of alcohol. 1245 01:03:06,542 --> 01:03:08,125 And it's successful. 1246 01:03:09,292 --> 01:03:11,125 And then by 1918, 1247 01:03:11,125 --> 01:03:13,500 you had the formal passage of that amendment, 1248 01:03:13,625 --> 01:03:15,500 which becomes the Volstead Act. 1249 01:03:15,500 --> 01:03:17,042 On January 16th, 1250 01:03:17,167 --> 01:03:19,750 alcohol becomes illegal in the US, 1251 01:03:21,208 --> 01:03:25,792 and Lem Motlow's Jack Daniel's distillery grinds to a halt. 1252 01:03:25,792 --> 01:03:28,333 The strategy of ramping up backfired, 1253 01:03:28,500 --> 01:03:31,500 because he had now sunk all of his money into a product 1254 01:03:31,625 --> 01:03:33,000 he could no longer sell. 1255 01:03:33,125 --> 01:03:38,250 And so all of the capital that they had was in danger 1256 01:03:38,375 --> 01:03:43,042 and so Jack Daniel's started to really teeter on the edge. 1257 01:03:44,875 --> 01:03:46,750 Motlow has spent the last few years, 1258 01:03:46,875 --> 01:03:49,417 cranking out whiskey at a breakneck pace. 1259 01:03:49,542 --> 01:03:53,042 And he's sitting on 50,000 gallons of it in his warehouse. 1260 01:03:55,750 --> 01:03:57,000 That was kind of the moment 1261 01:03:57,000 --> 01:03:58,750 that everything sort of crashed in around him. 1262 01:03:58,875 --> 01:04:00,458 And at that point, he had no idea 1263 01:04:00,542 --> 01:04:02,583 how he was gonna run his business. 1264 01:04:03,917 --> 01:04:05,500 Then, he gets a visit 1265 01:04:05,625 --> 01:04:07,500 from an unscrupulous entrepreneur, 1266 01:04:07,500 --> 01:04:09,083 named George Remus. 1267 01:04:10,333 --> 01:04:10,875 Mr. Remus. 1268 01:04:11,000 --> 01:04:12,208 Come on in. 1269 01:04:13,708 --> 01:04:16,167 A pleasure to meet you. 1270 01:04:16,292 --> 01:04:16,875 Please. 1271 01:04:19,542 --> 01:04:22,292 There were some loopholes in the Volstead Act 1272 01:04:22,292 --> 01:04:26,292 where you can sell whiskey as long it was medicinal. 1273 01:04:26,417 --> 01:04:29,083 George Remus was a lawyer and a pharmacist, 1274 01:04:29,208 --> 01:04:31,500 so he could see both ends of the spectrum. 1275 01:04:31,500 --> 01:04:33,000 Oddly enough, 1276 01:04:33,125 --> 01:04:35,083 there were a lot more scripts being written for whiskey 1277 01:04:35,208 --> 01:04:38,250 as medicine, after prohibition hit. 1278 01:04:39,375 --> 01:04:42,500 So, what's your offer? 1279 01:04:42,500 --> 01:04:43,375 How much? 1280 01:04:44,917 --> 01:04:46,250 250 a gallon. 1281 01:04:47,417 --> 01:04:48,208 250? 1282 01:04:49,875 --> 01:04:50,708 You're kidding, right. 1283 01:04:50,875 --> 01:04:52,958 I can sell for five times that. 1284 01:04:53,083 --> 01:04:55,333 Well, technically you can't. 1285 01:04:58,958 --> 01:05:01,583 George said, "Let me buy a stake 1286 01:05:01,708 --> 01:05:03,625 in your Jack Daniel's warehouse 1287 01:05:03,750 --> 01:05:06,167 and I can deliver it as medicine." 1288 01:05:06,292 --> 01:05:08,167 I mean, the market's not what it used to be, 1289 01:05:08,167 --> 01:05:09,958 not the medicinal market anyway. 1290 01:05:11,958 --> 01:05:14,125 And this is all above board? 1291 01:05:16,208 --> 01:05:17,625 100%. 1292 01:05:21,708 --> 01:05:22,708 The only way this deal will work 1293 01:05:22,833 --> 01:05:24,625 is if you take the whole lot, 1294 01:05:25,917 --> 01:05:28,625 50,000 gallons, all of it. 1295 01:05:33,125 --> 01:05:35,000 I'll have the paperwork drawn up 1296 01:05:35,125 --> 01:05:36,417 and sent to you in the morning. 1297 01:05:37,833 --> 01:05:39,167 Motlow had no choice. 1298 01:05:39,167 --> 01:05:41,167 Nobody wanted that whiskey, going into prohibition. 1299 01:05:41,292 --> 01:05:42,917 So he did what he had to do. 1300 01:05:44,625 --> 01:05:46,333 Motlow can legally sell his whiskey 1301 01:05:46,500 --> 01:05:49,292 to George Remus, a licensed pharmacist, 1302 01:05:49,292 --> 01:05:53,125 but only at 50% less than the pre-prohibition price, 1303 01:05:54,167 --> 01:05:55,917 but it's better than nothing. 1304 01:05:59,125 --> 01:06:02,458 All across the industry, other companies aren't so lucky. 1305 01:06:05,208 --> 01:06:07,083 Clearly prohibition came 1306 01:06:07,208 --> 01:06:10,625 and that translated into the closure of thousands of saloons 1307 01:06:10,625 --> 01:06:12,125 and the shutting down 1308 01:06:12,125 --> 01:06:13,958 of hundreds and hundreds and hundreds of breweries. 1309 01:06:14,042 --> 01:06:16,125 You could look at a graph of breweries in 1900 1310 01:06:16,250 --> 01:06:19,167 and the number just goes straight down. 1311 01:06:22,250 --> 01:06:24,875 August Busch tries to pivot away from Budweiser 1312 01:06:25,042 --> 01:06:29,667 to stay afloat, but so far he's grasping at straws. 1313 01:06:29,792 --> 01:06:31,500 Once prohibition happened, 1314 01:06:31,500 --> 01:06:33,208 Anheuser-Busch ended up making everything 1315 01:06:33,333 --> 01:06:35,667 from boats, to ice cream, to soap. 1316 01:06:35,833 --> 01:06:37,583 I mean, anything to stay alive. 1317 01:06:39,167 --> 01:06:41,208 Just like Lem Motlow's got a stockpile 1318 01:06:41,333 --> 01:06:43,208 of Jack Daniel's in his warehouse, 1319 01:06:44,625 --> 01:06:47,375 August Busch has a surplus of hops and barley 1320 01:06:47,542 --> 01:06:49,333 gathering dust. 1321 01:06:56,792 --> 01:06:58,792 And so I can't manufacture it. 1322 01:06:58,792 --> 01:06:59,625 I can't sell it. 1323 01:07:01,292 --> 01:07:03,583 So I'm forced to sit on a stockpile of ingredients 1324 01:07:03,708 --> 01:07:04,500 I can't move. 1325 01:07:06,375 --> 01:07:08,208 There's gotta be some work around. 1326 01:07:13,667 --> 01:07:14,375 But that's it. 1327 01:07:16,083 --> 01:07:18,125 What if we just sold the ingredients? 1328 01:07:19,958 --> 01:07:20,667 It's not illegal. 1329 01:07:22,250 --> 01:07:24,125 Technically, no, it's not. 1330 01:07:27,167 --> 01:07:30,417 The constitutional amendment simply forbids the sale 1331 01:07:30,542 --> 01:07:32,833 and manufacture of alcoholic beverages, 1332 01:07:32,917 --> 01:07:36,333 but there was nothing to prevent someone 1333 01:07:36,500 --> 01:07:39,708 from going to a store and buying packets of yeast 1334 01:07:39,875 --> 01:07:45,708 or packets of malt and taking them home and making beer. 1335 01:07:45,833 --> 01:07:47,208 What Busch was hoping was 1336 01:07:47,333 --> 01:07:49,625 that they would be able to sell the ingredients 1337 01:07:49,625 --> 01:07:52,542 to consumers who were gonna go home and make beer. 1338 01:07:56,250 --> 01:07:58,125 August Busch may have figured out a way 1339 01:07:58,125 --> 01:08:00,042 to sidestep prohibition, 1340 01:08:01,708 --> 01:08:04,375 but it's a strategy that will soon draw the interest 1341 01:08:04,542 --> 01:08:08,458 of one of the most notorious gangsters in American history. 1342 01:08:17,375 --> 01:08:20,167 Prohibition's been in effect for more than a year, 1343 01:08:20,167 --> 01:08:22,458 at least according to the letter of the law. 1344 01:08:24,333 --> 01:08:26,458 You had people drinking in their homes. 1345 01:08:26,583 --> 01:08:28,125 You had speakeasies. 1346 01:08:28,250 --> 01:08:30,292 And there was also a lot of corruption there. 1347 01:08:30,292 --> 01:08:32,083 Cops were being paid off 1348 01:08:32,208 --> 01:08:34,792 to kind of let certain places operate. 1349 01:08:38,292 --> 01:08:41,417 The irony is that President Harding, who is a dry, 1350 01:08:41,542 --> 01:08:44,292 keeps this room in the White House for his cabinet 1351 01:08:44,292 --> 01:08:45,500 that's filled with liquor 1352 01:08:45,667 --> 01:08:47,875 that he's purchasing from a moonshiner, 1353 01:08:48,000 --> 01:08:49,250 and that's clearly illegal. 1354 01:08:49,375 --> 01:08:51,083 So he's pushing a national policy, 1355 01:08:51,208 --> 01:08:53,000 which is enforcing prohibition, 1356 01:08:53,000 --> 01:08:55,708 and yet the reality is that the moralism 1357 01:08:55,833 --> 01:08:59,583 that you hear political leaders preaching from on high, 1358 01:08:59,708 --> 01:09:01,875 in no way resembles what they were doing 1359 01:09:02,000 --> 01:09:03,875 in their private lives. 1360 01:09:04,000 --> 01:09:07,167 The government seizes 140,000 illegal stills 1361 01:09:07,333 --> 01:09:11,000 a year, and confiscates over a million gallons of alcohol. 1362 01:09:11,000 --> 01:09:12,667 But by the 1920s, 1363 01:09:12,667 --> 01:09:15,417 it's estimated that the most successful bootleggers 1364 01:09:15,542 --> 01:09:19,167 are raking in over $100 million a year, 1365 01:09:19,333 --> 01:09:22,042 the modern equivalent of half a billion. 1366 01:09:22,208 --> 01:09:24,125 Because you've now pushed it underground, 1367 01:09:24,250 --> 01:09:25,500 you have organized crime. 1368 01:09:26,625 --> 01:09:29,083 And you have a new group of leaders, 1369 01:09:29,208 --> 01:09:31,208 Lucky Luciano, New York, 1370 01:09:31,375 --> 01:09:33,208 Joe Bonanno, New York, 1371 01:09:33,375 --> 01:09:35,333 Al Capone in Chicago. 1372 01:09:35,500 --> 01:09:39,042 The suspicions are that almost half of the cops in Chicago 1373 01:09:39,208 --> 01:09:41,000 were dirty, 'cause you have so much money 1374 01:09:41,000 --> 01:09:42,333 involved in alcohol. 1375 01:09:42,417 --> 01:09:45,500 They're involved in the transport and the sale of, 1376 01:09:45,625 --> 01:09:48,500 and turning their blind eye to all of this stuff happening. 1377 01:09:48,500 --> 01:09:52,500 So it's creating criminal activity by the people 1378 01:09:52,625 --> 01:09:55,208 that are supposed to protect us from criminal activity. 1379 01:09:59,292 --> 01:10:01,292 August Busch is skirting the law, 1380 01:10:01,292 --> 01:10:04,125 selling brewing ingredients instead of beer, 1381 01:10:04,125 --> 01:10:06,417 but he's barely scraping by. 1382 01:10:06,542 --> 01:10:08,375 Can I bother you for a second? 1383 01:10:08,500 --> 01:10:10,792 We had a big order come in this morning, and I mean big, 1384 01:10:10,792 --> 01:10:13,167 That's the kind of order we want, isn't it? 1385 01:10:14,583 --> 01:10:18,792 The order's from an Al C. out of Chicago. 1386 01:10:18,792 --> 01:10:20,167 You follow me? 1387 01:10:20,167 --> 01:10:21,583 Al C.? 1388 01:10:23,458 --> 01:10:26,292 There are so many stories floating around 1389 01:10:26,292 --> 01:10:29,083 about breweries who were dealing with criminals 1390 01:10:29,208 --> 01:10:30,417 like Al Capone. 1391 01:10:31,833 --> 01:10:33,917 For me as someone who has spend a lot of time 1392 01:10:34,042 --> 01:10:37,167 thinking about the Busch family. 1393 01:10:37,167 --> 01:10:38,667 It's hard to imagine 1394 01:10:38,667 --> 01:10:43,333 that he would've risked the reputation of the company, 1395 01:10:43,458 --> 01:10:45,875 but it's entirely possible. 1396 01:10:48,500 --> 01:10:51,083 Some of the greatest mobster we've ever seen 1397 01:10:51,208 --> 01:10:53,000 had brilliant entrepreneurial minds. 1398 01:10:53,000 --> 01:10:56,167 Legal or not, when you're able to create that much wealth 1399 01:10:56,167 --> 01:10:58,375 and make that much money, you have to be smart. 1400 01:10:58,542 --> 01:11:00,625 Jeff Bezos found out what people needed 1401 01:11:00,625 --> 01:11:02,208 and what they wanted, and he came to them 1402 01:11:02,375 --> 01:11:05,500 with a solution that was very profitable to him. 1403 01:11:05,625 --> 01:11:07,375 Al Capone was no different, you know. 1404 01:11:07,500 --> 01:11:10,958 I mean, he was operating illegally and breaking the law, 1405 01:11:11,042 --> 01:11:12,208 but he was seeing the world 1406 01:11:12,333 --> 01:11:14,333 through the eyes of his customers. 1407 01:11:15,750 --> 01:11:17,708 And he was able to give them something that they all wanted. 1408 01:11:19,667 --> 01:11:22,250 I pretend like I never saw the order come in? 1409 01:11:23,208 --> 01:11:24,000 Fill the order. 1410 01:11:25,333 --> 01:11:27,625 Just don't mention this to anyone. 1411 01:11:28,958 --> 01:11:30,917 You can have Al Capone tell the American people, 1412 01:11:31,042 --> 01:11:32,292 "I'm just a businessman. 1413 01:11:32,417 --> 01:11:34,375 I give the public what the public wants." 1414 01:11:34,500 --> 01:11:37,458 But when that comes with corruption, 1415 01:11:37,542 --> 01:11:39,833 at it's core is this fundamental fear 1416 01:11:40,000 --> 01:11:42,333 about the very soul of America. 1417 01:11:46,708 --> 01:11:49,500 While August pushes the limits of the law, 1418 01:11:49,500 --> 01:11:52,083 George Remus has a deal to sell Jack Daniel's 1419 01:11:52,208 --> 01:11:53,417 as medicinal whiskey. 1420 01:11:53,542 --> 01:11:57,333 Now, that whiskey was being guarded 1421 01:11:57,417 --> 01:11:59,917 because you weren't allowed to just take barrels out 1422 01:12:00,042 --> 01:12:00,792 and sell it. 1423 01:12:02,042 --> 01:12:04,500 Hurry up, keep it quiet. 1424 01:12:04,625 --> 01:12:07,833 George Remus, he was going in and doing a strategy 1425 01:12:07,917 --> 01:12:11,625 that most teenagers do when they're kids, 1426 01:12:11,625 --> 01:12:15,208 which is take some of the whiskey, replace it with water 1427 01:12:15,375 --> 01:12:18,833 and then sell the whiskey that he was taking out. 1428 01:12:19,000 --> 01:12:21,292 Come on, let's go, let's go. 1429 01:12:21,292 --> 01:12:23,917 Remus drains 50,000 gallons of whiskey, 1430 01:12:24,042 --> 01:12:27,333 worth the modern equivalent of nearly 60 million bucks, 1431 01:12:27,458 --> 01:12:29,167 then fills the barrels with water 1432 01:12:29,292 --> 01:12:31,458 so authorities won't notice. 1433 01:12:31,542 --> 01:12:34,500 Then he doubles down, stealing his own dummy barrels, 1434 01:12:34,500 --> 01:12:36,708 and putting in insurance claims for the losses 1435 01:12:38,375 --> 01:12:40,000 and nobody's any the wiser. 1436 01:12:41,708 --> 01:12:44,417 His illegal hooch is part of a burgeoning prohibition era, 1437 01:12:44,542 --> 01:12:45,667 underground economy. 1438 01:12:45,792 --> 01:12:47,417 There's not just the consumption of alcohol 1439 01:12:47,542 --> 01:12:48,667 to profit from. 1440 01:12:48,792 --> 01:12:51,208 There's like this whole underworld of vices. 1441 01:12:51,333 --> 01:12:53,958 And so you see connected to drinking, 1442 01:12:54,083 --> 01:12:57,167 gambling rings and different kind of gaming houses, 1443 01:12:57,167 --> 01:13:00,000 prostitution, all of these vices. 1444 01:13:01,750 --> 01:13:03,375 And in Harlem, 1445 01:13:04,333 --> 01:13:06,833 Stephanie St. Clair wants her piece of the pie 1446 01:13:07,000 --> 01:13:10,333 and she's willing to make a huge bet on herself to get it. 1447 01:13:12,375 --> 01:13:13,542 There are a lot of women betting in the game. 1448 01:13:13,667 --> 01:13:15,000 Many, many women are working 1449 01:13:15,000 --> 01:13:16,958 as a kind of middle management in the game, 1450 01:13:17,042 --> 01:13:20,833 but it is very rare to see a woman who is banking the game, 1451 01:13:20,917 --> 01:13:24,625 who really rises to the top of a numbers organization. 1452 01:13:27,542 --> 01:13:29,500 St. Clair pours everything she earned 1453 01:13:29,500 --> 01:13:32,625 working for the policy kings into opening her own game. 1454 01:13:33,875 --> 01:13:37,167 And she incorporates modern technology, like phones 1455 01:13:37,167 --> 01:13:38,333 and adding machines, 1456 01:13:38,417 --> 01:13:40,917 making hers the most efficient place in town. 1457 01:13:41,042 --> 01:13:42,458 Stephanie St. Clair, 1458 01:13:42,542 --> 01:13:44,833 who was one of the first ones to embrace the telephone, 1459 01:13:44,958 --> 01:13:48,208 to collect customers bets for the numbers. 1460 01:13:48,375 --> 01:13:50,500 Instead of having a series of runners 1461 01:13:50,500 --> 01:13:52,000 go around to people's homes 1462 01:13:52,125 --> 01:13:53,917 to actually collect their bet for the day, 1463 01:13:54,042 --> 01:13:55,208 this was much quicker. 1464 01:13:55,333 --> 01:13:57,000 And plus it had saved her a lot of money 1465 01:13:57,125 --> 01:13:58,500 in having to employ runners. 1466 01:13:58,625 --> 01:14:01,583 The one thing that's clear is that she is innovative. 1467 01:14:01,708 --> 01:14:04,833 She really proves herself to be just relentless. 1468 01:14:04,917 --> 01:14:07,083 In some ways, her numbers operations 1469 01:14:07,208 --> 01:14:08,667 reflect accounting firm. 1470 01:14:08,792 --> 01:14:11,500 There's a lot of people tallying things up. 1471 01:14:12,875 --> 01:14:14,625 Within a year, St. Clair's policy house 1472 01:14:14,625 --> 01:14:16,500 is raking in the modern equivalent of 1473 01:14:16,625 --> 01:14:19,000 $4 million annually, 1474 01:14:19,167 --> 01:14:21,500 making her the first and only, 1475 01:14:22,708 --> 01:14:25,167 policy queen, in New York. 1476 01:14:25,167 --> 01:14:28,333 She is the numbers queen in Harlem. 1477 01:14:28,417 --> 01:14:30,583 You have a Black immigrant woman 1478 01:14:30,708 --> 01:14:33,833 who dominates a male dominated game. 1479 01:14:33,958 --> 01:14:34,958 Like this is someone 1480 01:14:35,042 --> 01:14:37,042 who is stepping outside of her place, right? 1481 01:14:37,167 --> 01:14:41,083 So in many ways she becomes this local celebrity. 1482 01:14:42,458 --> 01:14:43,708 Her fame is spreading. 1483 01:14:43,833 --> 01:14:46,333 Soon, the whole underworld will know her name 1484 01:14:46,500 --> 01:14:48,458 for better or worse. 1485 01:14:55,208 --> 01:14:56,625 A few hundred miles away, 1486 01:14:56,625 --> 01:14:59,375 Lem Motlow has agreed to a perfectly legal deal 1487 01:14:59,500 --> 01:15:00,708 with George Remus. 1488 01:15:01,875 --> 01:15:03,833 Exactly, that's what I told him. 1489 01:15:07,292 --> 01:15:08,083 Let me call you back. 1490 01:15:10,625 --> 01:15:12,667 Can I help you, gentlemen? 1491 01:15:12,792 --> 01:15:14,583 We're gonna need you to come with us. 1492 01:15:15,708 --> 01:15:16,542 What is all this about? 1493 01:15:16,708 --> 01:15:18,125 You are under arrest 1494 01:15:18,250 --> 01:15:20,625 for violating Section 37, Article 2 of the penal code. 1495 01:15:21,458 --> 01:15:22,333 What? 1496 01:15:22,458 --> 01:15:23,625 What are you talking about? 1497 01:15:25,875 --> 01:15:28,500 The federal agents guarding the Jack Daniel's warehouse 1498 01:15:28,625 --> 01:15:31,500 recently made a startling discovery. 1499 01:15:33,208 --> 01:15:36,125 All the barrels are filled with dirty water, 1500 01:15:36,125 --> 01:15:39,500 but the feds have no idea that George Remus is to blame. 1501 01:15:40,708 --> 01:15:42,125 Shut up and walk. 1502 01:15:43,458 --> 01:15:45,833 And on June 7th, 1926, 1503 01:15:45,917 --> 01:15:49,458 Lem Motlow is charged with violating the Volstead Act, 1504 01:15:49,583 --> 01:15:52,750 putting his legendary uncle's legacy in jeopardy. 1505 01:15:57,042 --> 01:15:58,167 In a time when women aren't welcome in 1506 01:15:58,167 --> 01:16:00,875 boardrooms and many minorities are shunned, 1507 01:16:03,708 --> 01:16:06,500 thanks to her wildly successful numbers racket, 1508 01:16:06,625 --> 01:16:08,667 Stephanie St. Clair is one of the richest, 1509 01:16:08,792 --> 01:16:10,167 most powerful people in Harlem. 1510 01:16:13,458 --> 01:16:15,208 Let's see what you have for me today. 1511 01:16:21,542 --> 01:16:24,500 She lived at 409 Edgecombe in Sugar Hill, 1512 01:16:24,500 --> 01:16:27,333 and this is a building where doctors, lawyers, 1513 01:16:27,458 --> 01:16:31,625 prominent race reform leaders like W. E. B. Du Bois lived. 1514 01:16:31,750 --> 01:16:34,833 So she definitely rubbed shoulders with those folks. 1515 01:16:36,917 --> 01:16:38,667 Stephanie St. Clair is someone 1516 01:16:38,792 --> 01:16:41,542 who is always dressed to the nine. 1517 01:16:41,667 --> 01:16:46,708 Fur coats, cars, property, the latest cloche hats, 1518 01:16:46,875 --> 01:16:50,250 all of that denotes a sign or symbol of wealth. 1519 01:16:52,458 --> 01:16:54,500 Don't tell me what they cost. 1520 01:16:54,500 --> 01:16:56,417 The really interesting thing about St. Clair 1521 01:16:56,542 --> 01:16:58,583 is that she crafted a narrative 1522 01:16:59,875 --> 01:17:01,708 that showed her as this kind of wealthy, 1523 01:17:01,833 --> 01:17:04,708 kind of badass business woman. 1524 01:17:04,833 --> 01:17:07,000 St. Clair isn't just rich, 1525 01:17:07,000 --> 01:17:10,167 she's also one of the biggest employers in the borough. 1526 01:17:10,167 --> 01:17:12,833 St. Clair's operations are very, very large, 1527 01:17:12,958 --> 01:17:14,458 hundreds and hundreds of people. 1528 01:17:14,542 --> 01:17:16,167 People working in the counting rooms 1529 01:17:16,167 --> 01:17:18,167 and those people are making a decent living. 1530 01:17:18,167 --> 01:17:19,792 And there has to be a degree of security 1531 01:17:19,917 --> 01:17:21,958 because you're handling large amounts of cash. 1532 01:17:22,083 --> 01:17:25,125 Some people need to coordinate political relations, 1533 01:17:25,125 --> 01:17:27,250 relations with the police. 1534 01:17:32,083 --> 01:17:32,833 You're light. 1535 01:17:35,375 --> 01:17:36,125 Excuse me. 1536 01:17:40,292 --> 01:17:41,833 Prices went up last month. 1537 01:17:42,917 --> 01:17:44,250 I didn't agree to that. 1538 01:17:45,500 --> 01:17:47,500 Greed and corruption is everywhere. 1539 01:17:47,625 --> 01:17:48,542 It's the local government. 1540 01:17:48,708 --> 01:17:49,500 It's judges. 1541 01:17:49,500 --> 01:17:52,667 It's the police. 1542 01:17:52,792 --> 01:17:55,167 You think you can come in here and intimidate me? 1543 01:17:59,708 --> 01:18:00,917 Here's my counter offer. 1544 01:18:01,875 --> 01:18:03,667 You can either take the money 1545 01:18:03,833 --> 01:18:06,833 I've been gracious enough to give you every week, 1546 01:18:06,958 --> 01:18:10,708 or I could contact my friend down at the Times 1547 01:18:10,833 --> 01:18:13,000 and tell him about your little extortion ring. 1548 01:18:15,417 --> 01:18:18,167 Wonder if he might be interested in a story like that? 1549 01:18:22,500 --> 01:18:24,375 Are you threatening us? 1550 01:18:24,542 --> 01:18:25,917 Don't tempt me. 1551 01:18:33,250 --> 01:18:34,667 St. Clair hatches a plan 1552 01:18:34,792 --> 01:18:36,833 to expose police corruption 1553 01:18:36,917 --> 01:18:39,000 by naming names to the press. 1554 01:18:39,125 --> 01:18:42,000 It'll make her a hero to the Harlem underground, 1555 01:18:42,000 --> 01:18:44,667 but put a target squarely on her back. 1556 01:18:55,042 --> 01:18:57,500 August Busch can't make his signature Budweiser 1557 01:18:57,625 --> 01:18:59,333 in the face of prohibition, 1558 01:18:59,458 --> 01:19:02,250 and he's barely keeping Anheuser-Busch above water. 1559 01:19:04,042 --> 01:19:07,833 Then, on October 24th, 1929, 1560 01:19:07,958 --> 01:19:10,333 after years of unchecked growth, 1561 01:19:10,417 --> 01:19:14,833 the stock market crashes, shedding 30 billion of value, 1562 01:19:17,208 --> 01:19:19,958 and throwing the United States economy into chaos. 1563 01:19:20,042 --> 01:19:23,250 In the 1920s crash of the stock market. 1564 01:19:23,375 --> 01:19:24,792 People are buying stocks 1565 01:19:24,917 --> 01:19:28,167 because they believe there's a way to make money, stocks. 1566 01:19:28,167 --> 01:19:30,958 You don't have to work, make your money work for you. 1567 01:19:32,125 --> 01:19:34,667 Americans have always been interested in this. 1568 01:19:34,667 --> 01:19:36,833 And I think in the kind of thrill of gambling, 1569 01:19:37,000 --> 01:19:38,375 the idea of quick money, 1570 01:19:38,542 --> 01:19:42,167 that there is a possibility that you can walk out of a room 1571 01:19:42,333 --> 01:19:45,000 in a much better economic state than you walked in. 1572 01:19:45,000 --> 01:19:49,333 Now that is not the truth for most gamblers. 1573 01:19:49,458 --> 01:19:50,583 Within a year, 1574 01:19:50,708 --> 01:19:52,333 12 million people are out of work 1575 01:19:52,500 --> 01:19:56,000 and 12,000 more are losing their jobs every day, 1576 01:19:56,125 --> 01:19:58,250 20,000 companies go bankrupt, 1577 01:19:58,375 --> 01:20:01,708 but where most entrepreneurs see disaster, 1578 01:20:01,833 --> 01:20:04,250 August Busch sees opportunity. 1579 01:20:10,917 --> 01:20:12,000 The Great Depression is compounding the pain 1580 01:20:12,167 --> 01:20:14,917 of prohibition and 1,200 of the 1,300 1581 01:20:15,042 --> 01:20:17,292 major American breweries have shut down. 1582 01:20:17,292 --> 01:20:20,208 But with 25% of the workforce unemployed, 1583 01:20:20,375 --> 01:20:23,208 income tax revenue is plummeting, 1584 01:20:23,333 --> 01:20:27,167 and August Busch sees a new angle to save his business. 1585 01:20:27,167 --> 01:20:29,875 Anheuser-Busch is an American institution. 1586 01:20:31,458 --> 01:20:34,208 And we pay more than $3 million in taxes every year. 1587 01:20:35,958 --> 01:20:38,833 Prohibition didn't stop people from drinking. 1588 01:20:38,958 --> 01:20:41,208 It made them just figure out other ways 1589 01:20:41,375 --> 01:20:42,500 to get their alcohol. 1590 01:20:42,500 --> 01:20:43,875 It wasn't regulated. 1591 01:20:44,042 --> 01:20:46,083 So the legal vendors got penalized, right? 1592 01:20:46,208 --> 01:20:47,792 The government doesn't get to tax it. 1593 01:20:47,917 --> 01:20:49,250 People who are drinking it 1594 01:20:49,375 --> 01:20:51,875 don't know whether it's safe to drink or not. 1595 01:20:52,000 --> 01:20:56,083 No one's winning, right, except for the criminals. 1596 01:21:00,250 --> 01:21:01,833 I mean, you wanna talk about finding tax revenue 1597 01:21:01,917 --> 01:21:03,958 to pull this country out of the depression, 1598 01:21:04,875 --> 01:21:07,500 legalize beer, regulate it, 1599 01:21:08,542 --> 01:21:10,333 tax it. 1600 01:21:10,417 --> 01:21:15,417 By 1932, the argument being made about beer 1601 01:21:15,542 --> 01:21:18,500 was that it would be better for the country 1602 01:21:18,500 --> 01:21:22,417 to end prohibition to bring the tax revenue back. 1603 01:21:22,542 --> 01:21:24,958 I'm just asking you to think about it. 1604 01:21:26,792 --> 01:21:27,625 You too. 1605 01:21:28,917 --> 01:21:31,875 I cannot stress how much revenue 1606 01:21:32,042 --> 01:21:34,083 alcohol brings to the Federal Treasury. 1607 01:21:34,208 --> 01:21:37,583 It is one of the most taxed products in the United States. 1608 01:21:37,708 --> 01:21:38,417 When you're drinking a bottle of beer, 1609 01:21:38,542 --> 01:21:40,500 you're drinking a lot of taxes. 1610 01:21:43,000 --> 01:21:44,167 Busch publishes a pamphlet 1611 01:21:44,167 --> 01:21:46,833 called "An Open Letter to the American People," 1612 01:21:46,917 --> 01:21:48,958 claiming that repealing the 18th Amendment 1613 01:21:49,042 --> 01:21:52,250 would bring back 1.2 million jobs overnight. 1614 01:21:53,708 --> 01:21:55,708 Even people who had originally 1615 01:21:55,833 --> 01:21:58,333 funded the prohibition movement, 1616 01:21:58,458 --> 01:22:00,333 like the DuPont Brothers 1617 01:22:00,417 --> 01:22:03,958 and officials with big motor companies in Detroit, 1618 01:22:04,042 --> 01:22:05,792 were joining organizations 1619 01:22:05,792 --> 01:22:07,500 that were lobbying to repeal 1620 01:22:07,625 --> 01:22:12,125 because it had just become clear that it wasn't working. 1621 01:22:12,125 --> 01:22:13,917 It's also worth noting 1622 01:22:14,042 --> 01:22:17,208 a point that I think most Americans don't realize, 1623 01:22:17,333 --> 01:22:21,208 the prohibition amendment was never voted on by the voters. 1624 01:22:21,333 --> 01:22:23,125 All Busch could do now, 1625 01:22:23,125 --> 01:22:25,417 is hope his tactic works. 1626 01:22:33,458 --> 01:22:35,000 The man who runs the Jack Daniel's distillery, 1627 01:22:35,167 --> 01:22:39,375 Lem Motlow, has more to worry about than just prohibition. 1628 01:22:39,500 --> 01:22:42,333 After being arrested for violating the Volstead Act, 1629 01:22:42,458 --> 01:22:43,542 he's beaten the rap. 1630 01:22:44,958 --> 01:22:48,042 When George Remus was taken to federal court 1631 01:22:48,167 --> 01:22:50,500 to answer for all the bootlegging that he did, 1632 01:22:50,500 --> 01:22:52,833 he didn't name Lem. 1633 01:22:52,958 --> 01:22:54,208 But soon finds himself 1634 01:22:54,333 --> 01:22:57,125 right back in the middle of a court case. 1635 01:22:57,125 --> 01:22:58,958 Lem ended up getting in trouble 1636 01:22:59,083 --> 01:23:01,917 for shooting a conductor on a train. 1637 01:23:02,042 --> 01:23:03,917 So there was a Black conductor 1638 01:23:04,042 --> 01:23:05,625 saying, "Where is your tickets?" 1639 01:23:05,625 --> 01:23:08,333 Lem didn't feel that he needed to answer that question, 1640 01:23:08,458 --> 01:23:11,083 so another conductor came in and asked the question again. 1641 01:23:11,208 --> 01:23:12,708 This time he was a White conductor 1642 01:23:12,833 --> 01:23:14,583 and Lem pulled a weapon 1643 01:23:14,708 --> 01:23:17,208 and ended up shooting the White conductor. 1644 01:23:17,375 --> 01:23:22,000 ♪ If you lock, a dragon in a cage ♪ 1645 01:23:22,000 --> 01:23:26,625 ♪ He'll do anything he needs to get away ♪ 1646 01:23:28,042 --> 01:23:28,958 The fate of Lem Motlow 1647 01:23:29,042 --> 01:23:30,750 is now in the courts hands. 1648 01:23:41,500 --> 01:23:42,500 Stephanie St. Clair 1649 01:23:42,625 --> 01:23:45,458 blasted corrupt New York cops in the press. 1650 01:23:45,583 --> 01:23:49,542 Because St. Clair was really challenging police power 1651 01:23:49,667 --> 01:23:53,000 and authority, the cops had it out for her. 1652 01:23:53,167 --> 01:23:55,333 But despite her public fight, 1653 01:23:55,458 --> 01:23:57,875 she still relies on police looking the other way 1654 01:23:58,000 --> 01:23:59,542 to keep her business going. 1655 01:24:00,792 --> 01:24:01,625 Excuse me, ma'am. 1656 01:24:03,667 --> 01:24:05,125 I believe you dropped these. 1657 01:24:07,000 --> 01:24:09,542 My, my, my, what do we have here? 1658 01:24:12,250 --> 01:24:13,333 What is this? 1659 01:24:13,458 --> 01:24:14,958 Stephanie St. Clair, you're under arrest 1660 01:24:15,042 --> 01:24:17,125 for the possession of number slips. 1661 01:24:17,125 --> 01:24:18,417 Are you kidding me? 1662 01:24:20,750 --> 01:24:23,000 Despite having the cops on their payroll, 1663 01:24:23,125 --> 01:24:26,792 Stephanie St. Clair is arrested in December of 1929. 1664 01:24:28,125 --> 01:24:29,708 You'll never get away with this. 1665 01:24:31,042 --> 01:24:33,333 Who do you think a judge is gonna believe? 1666 01:24:33,458 --> 01:24:38,458 Several cops claimed that she has number slips. 1667 01:24:38,875 --> 01:24:40,375 I promise you'll regret this. 1668 01:24:40,500 --> 01:24:43,208 There was other people who saw what happened, 1669 01:24:43,333 --> 01:24:47,125 who said that they didn't see any number slips. 1670 01:24:48,000 --> 01:24:49,417 I never break my word. 1671 01:24:49,542 --> 01:24:50,833 Let's go. 1672 01:24:53,000 --> 01:24:54,417 Stephanie St. Clair's arrest 1673 01:24:54,542 --> 01:24:57,667 is meant to discredit her and reestablish police authority, 1674 01:24:57,792 --> 01:25:01,125 but instead of bringing the numbers racket in line, 1675 01:25:01,125 --> 01:25:03,667 it'll touch off a violent gang war 1676 01:25:03,667 --> 01:25:06,708 with the most dangerous mobsters in New York. 1677 01:25:10,292 --> 01:25:11,458 I can work with that. 1678 01:25:12,750 --> 01:25:13,917 Looks like- 1679 01:25:14,042 --> 01:25:16,250 They promised more next week. 1680 01:25:16,375 --> 01:25:17,917 The battle for the nation's soul 1681 01:25:18,042 --> 01:25:18,958 isn't over yet. 1682 01:25:19,042 --> 01:25:20,375 Legalize beer. 1683 01:25:20,542 --> 01:25:24,167 And a new era in American vice begins. 1684 01:25:25,875 --> 01:25:26,917 Deal me in. 1685 01:25:27,042 --> 01:25:27,750 You're over the limit. 1686 01:25:27,875 --> 01:25:28,875 I said, deal me in! 1687 01:25:29,042 --> 01:25:30,208 Excuse me. 1688 01:25:30,333 --> 01:25:31,958 A new kind of magazine. 1689 01:25:32,042 --> 01:25:33,000 Full nudes. 1690 01:25:33,125 --> 01:25:34,250 Have you lost your mind? 1691 01:25:34,375 --> 01:25:36,208 Completely changes the game. 1692 01:25:37,208 --> 01:25:38,083 I'll pay cash. 1693 01:25:40,125 --> 01:25:42,333 A new battle for tobacco supremacy. 1694 01:25:42,458 --> 01:25:43,375 What the hell is smoker's cough? 1695 01:25:43,500 --> 01:25:45,375 A public relations nightmare. 1696 01:25:45,500 --> 01:25:47,667 Gives rise to an American icon. 1697 01:25:47,833 --> 01:25:50,625 We call him the Marlboro man. 1698 01:25:52,083 --> 01:25:53,500 You gotta do what's best for you. 1699 01:25:53,500 --> 01:25:56,000 The future of the state lotto system. 1700 01:25:56,125 --> 01:25:57,917 Shot in the head, left out in the street. 1701 01:25:58,042 --> 01:25:59,000 Ends up in the hands 1702 01:25:59,000 --> 01:26:01,292 of a notorious New York mobster. 1703 01:26:01,292 --> 01:26:02,708 We're gonna shut 'em down. 1704 01:26:02,833 --> 01:26:05,125 And it all leads to a desert town 1705 01:26:05,250 --> 01:26:06,750 in the middle of nowhere. 1706 01:26:06,875 --> 01:26:08,000 Las Vegas. 1707 01:26:08,000 --> 01:26:08,792 What does that even mean? 1708 01:26:08,917 --> 01:26:09,667 No idea. 1709 01:26:11,042 --> 01:26:12,208 That will become known 1710 01:26:13,208 --> 01:26:14,458 as Sin City. 1711 01:26:14,542 --> 01:26:16,000 It's gonna be spectacular.