It is hard to imagine today, but gambling was a huge business in Ann Arbor during the 1930's and 1940's. A gambling probe of the police department took place in June of 1946, based on information supplied by local gamblers. The probe was the result of a year long investigation into gambling within the city. Seventeen people had been indicted on gambling charges, when the probe of the police department was ordered.

Chief of Police Sherman Mortenson and Detective Lt. Eugene Gehringer were accused of non-enforcement of gambling laws, taking bribes and permitting handbook operators to store their money in a safe at police headquarters. Circuit Judge James Breakey was appointed to act as a one man grand jury with Prosecutor William Brusstar assisting.

Judge Breakey began his probe by asking the police commission to remove Chief Mortenson and Lt. Gehringer from the department. The judge held a news conference asking the police commissioners to take legal steps to have the two officers removed from office. The officers publicly denied all of the charges.

On June 11, 1946, formal charges were filed with the court accusing Chief Mortenson and Lt. Gehringer with the graft charges. Both officers immediately filed for a hearing with the police commission, to defend themselves against the charges. Joseph Hooper was the chairman of the police commission and he granted their request. The commission was empowered to fire the officers and their actions were separate from the courts.

The police commission issued the following statement, “This is the first time anything like this has happened here. We naturally are deeply shocked, but we have sworn to do our duty and will let the ax fall where it may, whether it hurts anyone or not.” The police commissioners, Orlando Stephenson, Joseph Hooper and Herbert Frisinger, felt they had no choice but to immediately suspend the officers. As the department was now without a chief, Captain Casper Enkemann was appointed acting chief.

The charges stemmed from alleged instructions given by Chief Mortenson to “lay off” any investigation of gambling operations in the city. Specifically mentioned was the United Cigar Store, which was located at 118 E. Huron. The owners, Vernon Maluder and Wilson Haight, were also under grand jury indictment. These two were alleged to have been permitted to keep receipts, from their gambling operations, in the department's safe. Gehringer was said to have been a good friend of Haights. At the time of the incident Lt. Gehringer was the head of the department's detective bureau. The United Cigar Store was believed to do $1500 a day in horse betting, an extremely large amount of money at the time.

Specifically, Chief Mortenson was being investigated for refusing to order enforcement of gambling laws at these establishments and if orders were given they were half-hearted and never acted upon. Judge Breakey stated the numbers racket was rampant in the city and allowed to grow and flourish under Chief Mortenson's administration. The Judge further charged that Mortenson had received money and gifts from branches of the underworld for the protection he provided for them.

Chief Mortenson issued the following statement in denial of the charges. “Of course I am shocked at these charges and accusations which I most earnestly and emphatically deny. I have been a law enforcement officer for 23 years and felt I have earned and deserved the confidence and respect of my associates in this community. It has been my experience as a peace officer that even the most desperate law violator is entitled to his opportunity for a fair, impartial and just hearing. I shall expect no more and will be satisfied with no less.

Until the time arrives I shall have nothing further to say, except that I trust my friends will still keep on indicating their confidence and faith in me, as they have so generously done since this publicity was created.”

On August 4, 1946, the police commission hearing against the officers began in the council chambers. This hearing was somewhat unusual, as Prosecutor Brusstar was presenting the evidence against the officers. This hearing was strictly to determine their employment status with the police department, not to determine if any criminal charges were warranted. Up to this point the officers still had not been charged with any crime. Before the hearing began, Prosecutor Brusstar stated he had 37 witnesses who would testify against the two officers. Chief Mortenson was dismayed when he read the prosecutors witness list. He had no idea why some were testifying against him, due to little or no previous contacts with them.

On August 6, 1946, Police Commissioner Stephenson was giving his opening statement in the hearing against Chief Mortenson and Lt. Gehringer, when Defense Attorney George Burke interrupted him and read a prepared statement from the chief. This statement would shock the commission, as it stated that the chief did not wish to return to the police department in any capacity, no matter what outcome of the hearing was.

Stephenson then asked if a formal resignation would follow and Burke stated “yes.” It is believed this resignation was submitted to limit the scope of the hearing, so it could not be expanded to other possible charges. This backfired as the commission ruled that Prosecutor Brusstar could continue with the case as he saw fit. Chief Mortenson stated the resignation was not an admission of any guilt whatsoever.

While he resigned, he stated he would still fight to clear his name. He stated, “I have come to the conclusion that if I returned to my former position, it would be unjust to myself and to the men in the department. Nothing that I could do would convince certain people, who desire to think otherwise, that I was trying to do an honest efficient and capable job. The men serving with me would be subject to the same unfair suspicion and with that handicap they too, would be unable to do their best work.” The chief's statement was not a confession of guilt but he believed whatever the outcome of the hearing, he could not continue to run the department effectively. His resignation took place 23 years to the day of his appointment to the police department.

The hearing began with the testimony of George Whitman, owner of a pool room at 119 E. Ann St. He stated he had given Lt. Gehringer about $50 over a period of six months and this money was “just a present” and was never solicited. He asked Lt. Gehringer if it was permissible to play cards in the pool room and was told it was “all right if no money is involved.”

On cross examination, Whitman stated he once rented two parking spaces at the Armory from Gehringer, then an officer in the state troops (army reserves). Defense Lawyer Keyes claimed the money was for these rental payments.

Two other witnesses were called by the prosecutor, a barber shop owner and cab company owner, but neither provided any details of gambling. The cab owner, Carl Breining, did state he observed a bag handed to Lt. Gehringer in the O.K. Pool Room. Breining stated he observed a known numbers man, speaking on the phone and state “I have to get something for Mr. Gehringer.” Gehringer later entered the pool room and took the bag from him, although Breining could not state exactly what was in the bag.

The barber, Samuel Elliott, testified that a gaming room had been operating for eight years in the back room of his barber shop, at 209 N. Fourth, and it had never been raided. He also asserted that he had observed Gehringer go into the O.K. Pool room about twice a month. The pool room was across the street from his barber shop. Elliott did admit that he had been arrested by the police department for gambling.

The hearing continued the following day with the testimony of Howard Brown, who worked at the United Cigar Store. He testified that he observed another clerk take money and a slip from a customer, that he said was used to make horse racing bets, in the presence of Lt. Eugene Gehringer. Brown did testify that he did not see what was written on the slip however.

Sidney Smith, a former handbook operator, testified that he was employed by the cigar store for the sole purpose of aiding handbook operations. He stated the store did $1500 per day in bets.

Officers of the department were forced to testify against their own command officers. Officer Huizenga testified that Chief Mortenson told him “not to bother with the cigar store, because if they were raided in one place, they would probably open in another.” Officer Krasny testified that he had reported gambling at the store to Captain Enkemann, but that no action was taken. Det. Stauch testified that Lt. Gehringer told him that the gambling was small and petty at the store and the Detective Bureau had more important things to do. Det. Stauch denied that the chief had told him to “lay off” the cigar store.

John Jetter, owner of the cigar store, testified he paid Det. Gehringer $20 a month to collect on bad checks but this money was not a payoff for protection against police raids.

The only testimony damaging to the chief came from Nick Theros, an admitted numbers bet collector and reputed to be the head of Ann Arbor's racket operations. He refused to testify until he was granted immunity and the prosecutor agreed. Theros did testify, but under protest from Defense Attorney Burke. Burke stated that Theros was browbeaten into testifying and he had “heard someone drew a pistol on Theros” in order for him to testify. Prosecutor Brusstar denounced the accusations as “preposterous.”

When Theros did testify on Friday, August 9, 1946, he stated he had bribed Chief Mortenson with “between $180 and $200” during the years of 1941 and 1942. The money was paid to the chief in lots of $25 to $50 on five or six occasions.

Under cross examination he was unable to state where the money was exchanged and admitted he had no agreement with Chief Mortenson for any protection. It was further revealed he was under a psychiatrist care during the time frame that he allegedly gave the chief the money. Theros testified he was never threatened with a gun, as alleged by Defense Attorney Burke, but that County Prosecutor Rae wore one once, when he was being questioned by him.

Damaging testimony towards Det. Gehringer continued from Clarence De Luce, bartender at the Town Club. He stated he heard Gehringer tell the manager of the Town Club, Henry Charron, “Bill Haight (owner of United Cigar Store) is ruffled up about your booking bets and muscling in when he's paying protection.” He also testified that Det. Gehringer gambled at cards with other members at the club.

Sgt. Alfred Toney and Lt. Earl Clark testified that money from the United Cigar Store was in fact kept in the police department safe occasionally. Under defense questioning they stated this service was normal and offered without comment to any business owner that asked. Even schools kept their money in the safe when needed.

The prosecutor rested his case and the following were his major points of evidence against Chief Mortenson and Lt. Gehringer:

1. A statement by George Whitman that he paid Gehringer about $50 in gifts.
2. John Jetter, owner of United Cigar store, testifying he paid Gehringer $10 to $20 monthly as a gratuity for the collection of bad checks.
3. Det. Stauch's testimony that Gehringer told him “gambling is small and petty and the detective bureau has more important things to do.”
4. The testimony of Theros, who stated he had paid bribe money to Chief Mortenson.
5. Statements by witnesses that Det. Gehringer was friendly with known gamblers and played cards with them.

Defense attorneys for the officers then put on their defense for them and began by calling Chief Mortenson to the stand. Under questioning by his attorney, and cross examination by the prosecution, he stated he “never took money from anyone” and “constantly sought to keep gambling in check.”

The chief further stated he had never “closed his eyes” to gambling. He denied taking money from Theros and stated “Department records show there definitely was something done about gambling.” The chief also denied that Officer Huizenga brought forth a complaint about gambling at the United Cigar Store.

Lt. Gehringer was next to testify. He denied that he or Chief Mortenson had ever permitted, or protected gambling in the city and he denied taking any bribes to do so. Under questioning from Prosecutor Brusstar, he asserted that he “always made gambling arrests when I had the evidence” and “never protected anyone.”

He denied with vigor the statement made by Howard Brown, clerk at the United Cigar Store, that bets were being placed there, in his presence. He did state he took money from John Jetter for collecting money for bad checks, written to the United Cigar Store. He said this is a service he gave to any business. As to Det. Stauch's assertion that he was told to “lay off” the alleged gambling operations at United Cigar Store, “I told him not to make lengthy gambling investigations when working on other cases.” Lt. Gehringer also denied being close personal friends with Wilson Haight, owner of the United Cigar Store, stating he knew him, but not socially. The defense then rested its case.

With the proceedings complete, the police commission met privately to reach a conclusion. After studying the evidence, they completed their report on August 22, 1946. The commission cleared Chief Mortenson of any wrongdoing, but ordered the removal of Lt. Gehringer from the department, because of improper, but not illegal conduct.

Chief Mortenson stated, “I felt throughout that there was no other decision the commission could make. I knew in my own mind that I had nothing in my record of 23 years as police officer and chief for which I must apologize. I wish to thank the commission for a fair hearing and my friends for standing by me.”

Lt. Gehringer also felt a measure of gratitude, while he was found to have acted improperly, he was cleared of bribe taking. He said, “The vindication on the sweeping charges of bribery, corruption, conspiracy and agreement with the so-called underworld of Ann Arbor is gratifying. The record of testimony certainly reflects the absence of any such misconduct on my part. The finding that I had disqualified myself in so far as my usefulness to the department, is hardly borne out by the record. My undisputed testimony is that I did have gambling, as well as all law violations under constant surveillance and would and did made arrests for gambling, when such violations occurred in my presence and in such manner that the arrests would be sustained in a court of record.

“The decision reached is a harsh one, under the circumstances and on the testimony adduced. However, it has been foremost in my mind since the grand jury findings were made public, that my usefulness to the Ann Arbor Police Department was then so seriously impaired, that it would have been impossible for me to have continued in my official capacity, regardless of the commission's decision.”

The commission ruled Grand Jury Prosecutor William Brusstar, did not present a clear and satisfactory preponderance of evidence to sustain the charge that Chief Mortenson accepted money directly or indirectly. They further stated that the statement read into the record on August 13, 1946, is equivalent to a resignation and “is hereby so considered.” While the chief may have been cleared, I believe it is safe to say the commission was not comfortable with what had occurred under the chief's “watch” and would not ask him to stay.

They explained the grounds for Lt. Gehringer's removal on three counts:

1. That he had collected bad checks for compensation from a known gambler, when he knew such services could not be rendered by any member of the department for compensation.
2. That his associations and connections with known gamblers disqualified him, insofar as his usefulness to the department is concerned in the enforcement of anti-gambling laws.
3. That in instructing subordinates, he made it appear that gambling was of minor consequence and that it was not necessary to give it primary attention, when he knew that the enforcement of laws with respect to gambling was a matter of major consequence.

The end result of the hearing was the resignation of the chief and the removal of Lt. Gehringer. No criminal charges were ever brought against the chief or Lt. Gehringer. Obviously a very sad chapter in the history of the police department, but an interesting one nonetheless.