Gangsters Of LAKElife Country

Al Capone Baby Face Nelson John Dillinger

by Ray Balogh

Back in the heyday of Depression-era gangsters, the Wawasee lakes area, particularly Barbee Hotel, served as a hideout haven for many of the notorious Chicagoland public enemies.

Some say they are still there. The rogue’s gallery included

Al Capone, Baby Face Nelson, and John Dillinger — and their confederates and bodyguards.

Kosciusko County’s quiet lakeside communities were readily accessible from the Windy City but sufficiently tucked away to provide adequate reclusiveness for the criminals between “jobs.”

Capone was a rather frequent guest, staying at Barbee Hotel when a gang war broke out in Chicago. He invariably stayed in Room 301 after clearing the hotel of the rest of its guests so he could be alone.

Nelson, born Lester M. Gillis, became a criminal partner of Dillinger, and was also noted to stay at Barbee Hotel. He helped Dillinger break out of the Crown Point jail, after which Dillinger and fellow escapee Herbert Youngblood, with other members of his gang, raided the police station in Warsaw in 1934. They made off with two service pistols and three bulletproof vests, and made their escape in the Lake County Sheriff’s brand new V-8 Ford.

Ironically, driving the car from Warsaw to Illinois enabled the FBI to get involved in the manhunt for Dillinger. “At that time, bank robbery and murder were not federal crimes, but transporting a stolen vehicle across state lines was,” said Greg Steffe, co-director of the Old Jail Museum in downtown Warsaw. website indianahauntedhouses.com includes Barbee Hotel & Restaurant in its list of allegedly haunted structures around the state.

Its report on the hotel states, “Hotel staff have reported sightings, photos taken at the hotel to include orbs ... Even Rita Hayworth’s spirit is said to live here, appearing as a faint light outside the building.”

The Haunt Spot reports, “It is believed many of these gangsters returned to the hotel in death. Staff members have reported seeing an old man sitting in a booth after closing. When staff members talk to him there is no response. Thinking they are dealing with an unruly customer they leave to get assistance. However, upon returning, the bar is empty and no one has seen anyone leave.”

“One legend states the hotel was a popular place that gangsters took their girlfriends to. One gangster, however, took the girlfriend of another gangster. She was then murdered in the hotel by the jealous thug. People have reported that they hear her wailing at night and they feel cold spots generating from the area," according to The Haunt Spot.

One reader posted on indianahauntedhouses. com on April 25, 2021, “Being a new resident of Indiana we decided to look for historical places to dine. We were at a table and I decided to film the inside while we waited for our order. “The next day I reviewed the footage. There was something bigger than an orb that literally danced around our table.

Paranormal Activities

The Barbee Hotel is also somewhat famous for its reputed paranormal activities, which many associate with the gangsters’ presence in those early days. The

robin.ph / Shutterstock.com

It was so exciting to see an actual ghost. I still have the footage and show it often to people wanting a unique dining experience.”

The hotel and restaurant, unintimidated by the eerie reports, still celebrates its connection with the gangsters of the 1920s by drenching its decor with Al Capone newspaper articles and memorabilia and hosting Roaring ‘20s New Year’s Eve parties where attendees dress as gangsters or flapper girls.