Born Michele Merlo to Calogero and Maria Merlo in Sambuca Zabut, Sicily, at the age of nine Merlo immigrated with his family from Palermo to New Orleans and, then, in 1900, to Chicago. In 1902, Merlo's father died of a stroke, at the age of 52, leaving the 22-year-old Merlo and his sick mother to fend for themselves. Merlo later became involved in the Chicago chapter of Unione Siciliana, a national organization dedicated to assisting Sicilian immigrants in America. Although Merlo later transformed the Unione into a front for organized crime, he reportedly did have a genuine concern for the welfare of the Sicilian residents of Chicago's Little Italy.