Prohibition in Charlevoix (Alleged Occurrences)
Organized crime, bootlegging, and gambling flourished during the Prohibition era (1920-1933) as a direct result of the national alcohol ban. Resort communities in Northern Michigan, including Charlevoix, became hotspots for these illegal activities because they offered a level of privacy and anonymity unavailable in larger cities.
Charlevoix is known today as a peaceful lakeside community with fewer than 3,000 year-round residents. Yet beneath its tranquil image lies a colorful Prohibition-era past filled with gambling rooms, floating speakeasies, and rumors of infamous crime organizations such as the Purple Gang and Al Capone operating in the area. The heavy influx of visitors in the summer provided the perfect cover for gamblers and partygoers.
The Purple Gang
In the summer, people would come to Charlevoix to escape the hustle and bustle of the city but also to experience the underground nightlife. One of the most prolific organized crime groups operating within Michigan was the Purple Gang, a Detroit-based mob. According to local historian Dave Miles, the Purple Gang supplied Charlevoix hotels and restaurants with slot machines, making it easy for visitors to drop their coins in quickly and be gone within minutes. It is also said that the Purple Gang, along with other mobsters, may have influenced local law enforcement efforts, allowing these operations to continue with little interference.
The Keuka
The legend of the Keuka stands out as one of the most intriguing chapters of Charlevoix's Prohibition history. Launching on Lake Charlevoix on New Year's Eve in 1929, the ship operated as a floating speakeasy while officially presenting itself as a local dance hall. This offshore escape from the law ran until 1931. Local lore suggests that the infamous Al Capone may have been the financial backer behind this speakeasy, though no definitive evidence has ever confirmed this claim. On January 1, 1931, a dispute between two intoxicated passengers resulted in the ship’s manager, Ed Latham, getting shot in the stomach. Latham survived his injuries, but this was the final straw, and the speakeasy was shut down and sold at auction. Being out on the lake, guests could escape the law and enjoy a hidden nightlife scene. Its story adds a mysterious chapter to Charlevoix’s past.
On August 14, 1932, less than a year after being shut down, the Keuka sank and now lies 50 feet below the surface of Lake Charlevoix. At the end of its life, the Keuka had begun decaying and had to be pumped of water daily due to its old age. Legend offers three possible explanations for its demise. Some believe the boat was scuttled by the owners to hide things from federal authorities. Others claim it was sunk by the local Woman's Christian Temperance Union as an act of their disdain for the activities that took place onboard this ship. And a third and perhaps most likely, is that it just succumbed to leakage.
Today, those who have the proper training and equipment are able to dive down and view the remains of what once was the legendary Keuka.
The Colonial Club
During the Prohibition era, the Colonial Club was one of Charlevoix's premier gambling spots. Designed to appeal to the affluent summer crowds, the establishment provided an exclusive and discreet atmosphere for its wealthy patrons. Known for its elegance and sophistication, the Colonial Club provided little outward indication of the activities taking place inside. Guests enjoyed fine dining, dancing, drinks, and social gatherings, but gambling was undoubtedly one of the club's biggest attractions. The combination of luxury and secrecy made it a popular destination during an era when many sought entertainment beyond the boundaries of the law.
Charlevoix's Prohibition-era history serves as a reminder that even the most peaceful communities can harbor fascinating stories and hidden chapters from the past.