The area of Manhattan where four streets – Anthony (now Worth), Cross (now Mosco), Orange (now Baxter), and Little Water (now nonexistent) – converged was known as the "Five Points".
In 1842, famous British author Charles Dickens visited the area and was appalled at the poor living conditions and substandard housing.
[1] In the pre–civil war era, Catholic immigrants often dealt with ethnic prejudice and class discrimination from Nativist White Anglo-Saxon Protestants.
As a result, many Irish immigrants formed local street gangs such as the Kerryonians, the Forty Thieves, the Shirt Tails, and the Chichesters, to rebel against their low social status.
As time went on, Jewish, Polish and Eastern European immigrants would also be brought within the ranks of the Five Points Gang, making them even more powerful and influential.
A Tammany Hall deputy named Tom Foley brought Kelly and Eastman together and told them that neither would receive any political protection if they did not resolve the border dispute.
Kelly had been a boxer in his younger days, and was said to make a better showing in the earlier rounds, but Eastman was a larger man and fought ferociously.
Eastman's imprisonment meant the Five Points Gang had no effective rival for control of organized crime activities in the Lower East Side.
Paolo Vaccarelli/Paul Kelly survived an attempt on his life, after being shot three times by two of his former lieutenants, James T. "Biff" Ellison and Pat "Razor" Riley, in a gun battle inside the New Brighton in 1905.
Tammany Hall pressure made him keep a lower profile after this incident, while New York Police Commissioner William McAdoo closed the New Brighton for the protection of its socialite regulars.
After Kelly closed the New Brighton, he moved operations to the Italian immigrant communities in Harlem and Brooklyn, while also retaining ties to his old neighborhood, becoming a vice president of the International Longshoremen's Association (ILA) under his Americanized birth name of Paul Vaccarelli.
Former Five Pointers such as Torrio, Capone, Lansky and Luciano became the leaders of the new groups and, with mentoring from influential businessman and criminal genius Arnold Rothstein, expanded their operations on a national and international basis.
With the 18th Amendment and the Volstead Act establishing Prohibition in 1920, profits from bootlegged liquor became a huge source of revenue for the Mafia families.
Torrio later helped form a National Crime Syndicate in the United States, following the demise of the Five Points Gang and after Capone replaced him in Chicago, in coordination with Luciano and Lansky.