The Louis Zahn Drug Company
The Louis Zahn Drug Company gained a certain amount of infamy for its role in bringing down notorious Chicago cop and Mafia bag man, Richard "Dick" Cain. This footnote in the storied history of the Chicago Mafia, also known as the "Outfit" and "Chicago Syndicate," led me to a critical piece of evidence that had been covered up in the Tylenol murders investigation.
The Louis Zahn Drug Company Heist
In October 1963 a truck loaded with $250,000 worth of drugs was stolen from the Louis Zahn Drug Company warehouse in Melrose Park, IL. Four months later the Chief of Inspectors for the Cook County Sherrif's department, Dick Cain, received a tip from mobster Guy Mendola that some of the stolen drugs were stored at the Caravelle Motel. Chief Dick Cain, Lieutenant James Donnelly, and Sergeant John Chaconas raided the motel and recovered $43,000 of the stolen drugs. "The tipster was someone in the burglary gang," Cain told the press.
To State's Attorney, Daniel P. Ward, the story sounded suspicious, so he launched an investigation into Cain's dealings with Mendola. It turned out that the raid on the Motel was a setup, engineered by Cain with Mendola's help. The details of the scheme were never proven, but the State’s Attorney maintained that Cain and Mendola were unable to find a buyer for some of the drugs, so Cain, Donnelly, and Chaconas conducted a fake raid to create the impression that it was their superb investigative work that led to the recovery of a portion of the stolen drugs, when in reality they were involved in the theft. Cain was fired and convicted for lying about the robbery to a grand jury, but his sentence was later suspended.
In December 1967, Cain was indicted for his role in the 1963 Franklin, IL Savings & Loan robbery, and in October 1969 he was sentenced to four years in the Texarkana, TX penitentiary.
Paroled in 1971, Cain, who spoke five languages and was probably a bona' fide genius, resumed his role as right hand man to deposed Outfit boss Sam Giancana, who was living in exile in Mexico because things were too “hot” in Chicago. Cain served as Giancana’s international courier and scout for gambling operations and investments in corporations in Europe and elsewhere. Cain was also involved with an Outfit crew of jewelry thieves.
By 1973 at least one of Cain's fellow mobsters believed that he'd become a liability. Some think that Sam Giancana and Cain had a serious dispute. Others believe the jewelry thief crew decided that Cain couldn’t be trusted any longer.
On December 20, 1973, two men wearing ski masks and carrying walkie-talkies entered Rose's Sandwich Shop in Chicago’s West Side and ordered the eight people inside up against the wall. One man held a twelve gauge shotgun under Cain's chin, pulled the trigger twice and blew his head off. The killers quickly fled, accompanied by what witnesses later said was a mysterious "woman in blue."
Thirty years later an FBI informant revealed that Joseph “Joey the Clown” Lombardo, who became an outfit capo in the 70s, was the triggerman.
Why was Dick Cain killed? According to one Chicago cop the answer was simple: "He knew too much."
In fact, Cain had been working as a double agent for years, supplying information about the Outfit to FBI agent William Roemer.
The connection between Dick Cain and The Louis Zahn Drug Company left a footnote in the storied history of the Chicago Outfit that provided the link I would need to determine the truth about the Tylenol murders. That this bit of history was the final piece of the puzzle is ironically fitting, considering the true nature of the properly polished, politically correct executives who covered up critical evidence during the Tylenol murders investigations.
The Louis Zahn Drug Company
The Louis Zahn Drug Company was a privately held wholesale distributor of drugs and related products. Its customers included retail drug stores, nursing homes, and hospitals. The company was founded in 1931 by Louis Zahn.
On January 27, 1982, the Louis Zahn Drug Company named William P. Altman president and chief operating officer. It's unclear how long Altman served as President and COO.
John Stockman was Cheif Financial Officer for Zahn Drug from 1971 to 1983.
Mevlyn Zahn was majority owner of the Louis Zahn Company.
Andrew J. Zahn was a principal in the Louis Zahn Drug Company and also served as President of the Zahn Investment Group.
Zahn Drugs was the largest pharmaceutical distributor in the Midwest before its sale, in 1989, to FoxMeyer. In 1995 FoxMeyer filed for bankruptcy and sold all its assets to the McKesson Corporation.
This building, in Melrose Park, IL, housed the Louis Zahn Drug Company headquarters and warehouse.
Louis Zahn Drug Co. employee, Jim Dempsey, was interviewed by ABC at the company warehouse in Melrose Park, shortly after the Tylenol murders. Dempsey stated that agents from the FDA, FBI, and Illinois Department of Law Enforcement had all been at the warehouse. "They were principally interested in the lots of Extra-Strength Tylenol capsules that we had, and they were also interested in what customers had purchased them, how many, and when," said Dempsey.
Melrose Park: Jewel Foods Distribution Center, The Louis Zahn Drug Company Distribution Center, and Walgreens
The Louis Zahn Independent Pharmacies
In August 1981, the Louis Zahn Drug Co. announced the association of its 10 Family Drug Centers in the Northwest suburbs of Chicago with Familycare Drug Centers Inc., which franchised its name to the Zahn associated pharmacies and provided corporate planning, national marketing, regional distribution, and wholesaler support services.
The Louis Zahn Drug Company Trucking Business
In order to transport its products to its customers, Zahn maintained its own delivery operation by leasing trucks and hiring drivers who were members of the Union. Zahn and the Union drivers entered into a collective bargaining agreement covering the period from April 1, 1982 through March 31, 1985. The Louis Zahn company used a legal loop-hole to get out of their contract with union truck drivers in 1984.
One more bit of Notoriety for the Louis Zahn Drug Company
Before his arrest in 1978, convicted mass-murderer, John Wayne Gacy, worked for a subsidiary of the Louis Zahn Drug Company for 2 1/2 years. He was hired to do remodeling work at several drug stores. Gacy was executed in 1994, still maintaining that he was wrongly convicted.
Gacy's final words: "Kiss my ass."
John Wayne Gacy
John Wayne Gacy8213 SummerdaleNorwood Park, IL 60611
Objective: Seeking a position utilizing my broad range of managerial skills and organizational ability. Specifically seeking position with upward growth potential and advancement.
Work Experience: Retail Management, Fast Food Management, Civic Organization, Civil Defense, Government, Carpentry, Remodeling, Building Contractor, Cement Contractor.
Business Experience:
May 1975 to PE SYSTEMS Norwood Park, Illinois
Present Founder/President
Other:
* Successfully managed two independent contracting firms
* Developed building and drug store remodeling business
* Appointed Democratic Precinct Captain
* Successfully organized the Chicago Polish Day Parade
* Founded and presided over two companies with quarter-million dollar yearly income
Jun 1969 to PDM CONTRACTING - Chicago, Illinois
Apr 1975 Founder/President
Other:
* Successfully managed painting and decorating firm
* Named Secretary/Treasurer Norwood Park Township Street District
May 1966 to Kentucky Fried Chicken - Waterloo, Iowa
Jan 1969 Management Trainee/Graduate KFU
Other:
* Advanced to manager of two KFC locations
* Commissioned Honorary Colonel, Governors Brigade
* Successfully organized 40 Jaycee events
* Served in ministry as Jaycee Chaplain
* Named Jaycee Chaplain of the Year Iowa State
* Served Jaycee Board of Directors
Jan 1963 to Robinson's Department Store - Springfield, Illinois
Jan 1965 Management Trainee/Nunn Bush Shoes
Other:
* Organized 40 Jaycee events in first year
* Awarded "Key Man" by Jaycee's
* Voted "Outstanding First Year Jaycee"
* Voted Illinois Third Best Jaycee of the Year
* Successfully planned Central Illinois' largest Christmas Day
Parade
Jan 1960 to Palm Mortuary - Las Vegas, Nevada
Jan 1961 Mortuary Attendant/Ambulance Driver
Other:
* General Assistant
* Ambulance Driver
Aug 1954 to IGA FOODS - Chicago, Illinois
Dec 1959 Delivery
Other:
* Appointed Civil Defense Captain
* Organized Chi-Ro-Youth Club
Education: Chicago Public Schools
Business School
Kentucky Fried Chicken University
Other:
* Wechsler IQ: Verbal 119, Performance aspects 129
* Superior Intelligence/Very Bright
Personal: Able to work with and manage people, active in civic organizations, activepolitical organizations, knowledge of municipal government, knowledge of organization and fund raising events, work exceptionally well with young people.
Available to work all shifts including third shift late night
and weekends.
Available to travel.
Hobbies: Holy Name Society Bowling League.
Playing "POGO" the clown at hospitals, community and
charity events.
Archeology, Excavating and Masonry work.
50 Health Marts planned for Greater Chicago area
50 Health Marts planned for Greater Chicago area
CHICAGO -- Health Mart, FoxMeyer's franchise program, signed a letter of intent to convert 25 Family Drug franchises to Health Mart stores in the Greater Chicago market.
The conversion, with closings expected by year's end and grand openings anticipated next spring, will bring to 35 the number of Health Marts here. The Windy City is the nation's second-largest market in drug store sales, having reached $2 billion in this fast-growth market last year.
Michael Webster, president of Health Mart, predicted that 50 Health Mart franchise agreements in Chicagoland may be signed by year-end.
"The pharmacies participating in the program will received a customized store layout, with our red, white and blue interior and exterior signage," Webster said.
They'll also get an integrated advertising, merchandising and pricing plan, and an aggressive private label program.
"We offer 358 private label items," Webster said. "Eighty are vitamins, and the rest OTC and H&BA products. All of our private label products are national brand equivalents, priced 25 to 30 percent below comparable major brands, and will generate 40 to 50 percent gross profit for the retailer," he said.
Health Mart currently operates 547 stores in the nation, with total sales reaching $504 million. The Family Drug franchises were part of a program supported by Louis Zahn Drugs in Chicago. FoxMeyer's parent company, National Intergroup, purchased Louis Zahn earlier this year.
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