She complained to local authorities about harassment by the NYPD, and when they paid no heed she ran advertisements in Harlem newspapers, accusing senior police officers of corruption. The police responded by arresting her on a trumped up charge, and in response she testified to the Seabury Commission about the kickbacks she had paid them. The Commission subsequently fired more than a dozen police officers.
Queenie and her chief enforcer Ellsworth "Bumpy" Johnson refused to pay protection to Schultz, but the wave of violence and intimidation began wearing them down. Eventually, however, Bumpy Johnson approached Lucky Luciano. He negotiating himself into the position of enforcing the will of the Five Families by supervising and shaking down Harlem's Black lotteries and bookmakers. He also approached Madam St. Clair and tried to persuade her to come with him. She at first refused, but Bumpy continued doing his best to protect his former boss. However, both eventually realized that the struggle was hurting business, and collaborated to arrange a truce with Schultz. Queenie was allowed to operate so long as she continued paying the Family Tax to the Italians.
In 1935, Schultz was assassinated on the orders of The Commission (mafia). St. Clair had nothing to do with his murder, but sent a telegram to his hospital bed. It read, "As ye sow, so shall ye reap." This incident made headlines across the nation.