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Heart of the Chain O’Lakes
As soon as the railroad tracks were extended to Fox Lake, the area became easily accessible to the average worker. Suddenly, they were only a short train ride away from the “Heart of Nature,” including the famed Lotus beds and other gifts of nature. With its key location on a peninsula formed by three of the major Chain lakes, Nippersink Point (Fox Lake) became a major attraction for tourists and sportsmen. The Heart of the Chain O’Lakes was born.

Resort heyday
Fox Lake was a major vacation destination, and as early as 1909 the summer population exploded to an estimated 20,000 people. For its first 50 years, the Village was a resort community in the era of what has been called the “resort heyday.” During the last 50 years, Fox Lake has slowly transitioned to being a recreational, residential community, where few resorts remain and most summer cottages have been replaced by permanent residences.

While there were many reasons for the decline of the local resorts, the Great Depression was the most devastating to the recreation economy. The resorts began a disappearing act over the next two decades. Resort properties were subdivided and summer cottages were converted to year-round homes. Since most of the buildings were of frame construction, requiring high maintenance and repairs, many owners could no longer afford the cost of upkeep. Many of the smaller resorts were closed and converted to homes. While some water-related businesses have survived and a few have prospered through the decades, they are the exceptions.

Consider that today, there are far fewer resorts, cottages and rooms-to-rent on the Chain O’Lakes than there were in 1910, when the resident population was much smaller. Most of today’s 28,000 boats registered on the Chain belong to residents or to “weekend warrior” boaters. The old resort business model faded, along with its aging structures. During its heyday, the area was a vacation destination, where people would stay for a week or two—and possibly, for the entire summer.

Prohibition
Prohibition began on January 16, 1920, and mandated that no more intoxicating liquors could be sold in the United States. This impacted the Village in many ways. There were 48 liquor licenses in the Village before Prohibition, whose license fees provided a major source of revenue for the Village government. Since this dried up the Village’s income from liquor licenses, it created the need for local property taxes from the Village residents.

Most of the saloons became ice cream parlors, selling near beer and soft drinks with lesser license fees. Of course, many of the ice cream parlors covered for “other products” being sold. Keeping in mind that the sale and distribution of illegal alcohol was not well enforced, the resorts were able to do reasonably well during the prosperous, free-spending Roaring Twenties.

The resort area had a reputation for lawlessness during Prohibition. Of course, Fox Lake’s reputation extended back to a 1910 Chicago Tribune investigation, which concluded with a “Vice at Fox Lake flaunted in the Open” headline. The Chicago mob made their presence known in the Chain O’Lakes area as they battled to control the illegal alcohol market. Well-known Chicago gangsters frequented the area, sometimes seeking seclusion “while things cooled off.” Fox Lake became part of the turf war scene on Memorial Day, 1930, when Manning’s Resort on Pistakee Lake was the site of a shootout, where three gangsters were killed and one local injured. The shooting was believed to have been in retaliation for the St. Valentine’s Day massacre.

Prohibition Repeal
After Prohibition was repealed in 1933, the former saloons started to reopen. Starting in 1934, there were 38 liquor licenses issued by the Village, which rose to 57 in 1945 and continued at the 55 level through the early 1980s. Of course, in the early years, the liquor licenses were mostly for saloons (taverns) and resorts, whereas in later years many of the licenses have been for convenience stores, grocery stores, and gas stations. There has been a myth that Fox Lake had more taverns per capita than any other municipality in the country, but this has not been factually verified.

One of the Village’s more colorful characters, Edward (“3 Star”) Hennessy, spent some time in jail for selling illegal alcohol. After the repeal, he opened a legal bar and dance hall called “3 Star Hennessy’s.” He painted the outside wall with a sign “Wine Women and Song,” but the State and local Liquor Commission objected to his sign, wanting it removed. He cited it as a biblical expression and won—the sign remained.

Gambling
Gambling was always very popular in the resort area. Many of the early clubhouses and resorts were known by their high stakes card games. The Mineola and the Illinois hotels were noted for their gambling activities. The 1910 Chicago Tribune investigative report spoke of Fox Lake’s 40 saloons and resorts with “questionable women” and open gambling.

After Prohibition was repealed, the mob quickly shifted its focus from the illicit alcohol trade to gambling. Slot machines, punch boards, and horse-race books were the new sources of income. Gambling was always an attraction in the Chain O’Lakes resort area and Fox Lake was no different. By 1945, Fox Lake had an estimated 200-300 slot machines in operation in the Village. Slot machines continued to be a key source of gambling going into the late 1940s.