Killing the Fatboy: Carl Williams, Mick Gatto and the Melbourne gangland war (Part One: 1952–1976)
Carl Williams surprised both law enforcement and the underworld by wrestling control of Melbourne’s ecstasy trade in the early 2000s. Having defied the criminal establishment, Williams’ rise was accompanied by a spate of murders which rocked the city. As public concern mounted, police finally succeeded in imprisoning the face of Melbourne’s gangland war. Facing a lengthy sentence, Williams agreed to talk with investigators from anti-corruption, a decision which soon cost him his life. The central figure in the first series of Channel 7’s “Underbelly” (2008), Williams has joined the pantheon of infamous Australian criminals. In reality however, Melbourne’s gangland war was the result of more complex forces than just one man’s ambition, reflecting the changing nature of Australian organised crime in the early 21st century.
During the 1970s, a major force in Melbourne’s underworld had been the Federated Ship Painters and Dockers Union (FSPDU), which reportedly imposed a system of taxation on crime committed in the city. The union had emerged in the early 20th century, and was relatively left-wing in its political orientation. In Melbourne, the local branch of the Painters and Dockers was led by State Secretary George Doyle, who was accused of Communism by government investigators. At the same time, there was a growing criminal element within the FSPDU, a common theme in waterfronts across the world. Noticeably, they appear to have been more influential in Melbourne’s privately-owned dockyards, likely because employers saw them as easier to work with than left-wingers such as Doyle.
Already, the Painters and Dockers were known to be less militant than the staunch Communists in the rival Waterside Workers Federation, and were rewarded with federal industrial award that helped entrench their position. Then, in 1952, George Doyle’s role was taken over by designated successor Jim Donegan, who was soon forced to cede control of the private-sector docks to the criminal element. Over the following years, the influence of organised crime grew in the union, gaining key positions by stacking local branches with gangsters, who were employed in no-show jobs. The practice was likely backed by employers, who would have been happy to hire some “ghost dockers” as long as they didn’t vote Communist.
Outside of Australia, a similar overlapping of organised crime and organised labour can be observed operating in a similar matter to the Painters and Dockers, particularly in the maritime industry. In part, this is due to the historic role of the waterfront as a haven of illegal activities such as smuggling. At the same time, dockworkers and sailors also have a history of political radicalism, meaning that gangsters are often a preferable alternative. Along America’s East Coast, the International Longshoreman’s Association was closely associated with the Mafia, with New York’s Murder Inc believed to have been responsible for the death of grassroots leader Pete Panto.
By 1971, Jim Donegan was dead, having suffered liver failure. With him gone, violence quickly broke out as the union’s criminal element sought to take over. With Donegan’s presumed replacement, Patrick Shannon, apparently unwilling to stand, a lowly member named George Carey agreed to step into the role. Within months, Carey had disappeared, either running away from the job or murdered by the criminal elements. Finally, Shannon assumed the role, scheduling an election for 1972 to confirm a mandate for him and his allies to lead the union.
Shannon’s ticket for the election was opposed by a rival slate set up by William “Billy” Longley. A man with a long criminal history, Longley was joined by James Bazley, a reputed contract killer, and the Painters and Dockers would soon be engulfed in violence. An early incident took place outside the union offices, when a Longley associate was hit with a brick after brandishing a gun. Afterwards, Shannon ally Alfred Nelson disappeared, with his abandoned car later hauled out of the ocean. According to rumours, Nelson had wielded the brick in the earlier skirmish, while the man said to be responsible for his death was longtime criminal Desmond Costello.
Although the Shannon faction was less aligned with organised crime, they were still waterfront workers, and so were not afraid of fighting back against Longley’s bid for power. In December 1971, Desmond Costello was shot and killed, with the violence continuing into the next year during the lead-up to the vote. Notably, a fire at the union’s offices destroyed decades worth of records just a week before members went to the polls. Despite Longley’s efforts however, he was still unable to take control of the Painters and Dockers from Shannon, with his slate suffering a resounding defeat in the election. Instead, he relied on his contacts in the underworld, with the new State Secretary shot dead in Melbourne pub in 1973.
In the investigation into the Shannon case, Longley was ultimately found guilty of ordering the murder, and was returned to prison in 1975. Still, control of the Melbourne branch of the Painters and Dockers had finally been wrestled away from the left. In the place of Shannon, Longley ally Jack “Putty Nose” Nicholls became State Secretary, and it would be in this period that the Painters and Dockers would reach the height of their power in Melbourne’s underworld. However, this power came with further turmoil, as the various criminals involved with the union fought amongst themselves for power.