In mid-twentieth-century Portland, gambling dens, brothels, and unlicensed bars operated virtually uninhibited by police as long as vice racketeers paid scheduled kickbacks to key city law enforcement officials.

An allegation against Mayor Schrunk soon landed him before the special Senate committee headed by Arkansas Democrat John McClellan investigating U.S. labor racketeering in March 1957.

While still sheriff in September 1955, Schrunk and his deputies had raided the 8212 Club, a gambling and after-hours drinking joint financed by Portland Racketeer James B. Elkins.

But he did admit that his deputies had raided the 8212 Club, seen liquor being illegally served after hours, spotted gambling equipment all over the place—and that he had gone away without taking further action.

[12] Continued resentment by Schrunk and his supporters was seen as a contributing factor to Robert Kennedy losing the Oregon Democratic Primary to Eugene McCarthy in May 1968.