The Lodge doesn't wish to perpetuate the stereotype that Halflings are criminals, but on the other hand, if there is organised crime in a city, then Halflings deserve just as big a piece of the pie as any Big Footer.
[...]
The Council in that city counts among its members "Bloody" Jacob Rumplewheat, leader of the Resurrection Brotherhood, a syndicate of very successful Halfling bodysnatchers. The Council is also quite aware of the many illegal goods traded at Odfast's Pipehouse.
[...]
Also kept secret is just how often the Lodge involves themselves in these practices, not to mention other behaviours, which, at least on the surface, seem counter to Halfling interests. For example, more than one Halfling inn- or shopkeeper has gone broke because the Lodge has forbidden him to sell to human customers or to raise his prices to a profitable level. More than one businessman has been "asked nicely" not to pursue his ideas for expansion or opportunities for great wealth because of some obscure deal the Lodge has made—or claimed to have made. And more than one Halfling has noticed that, all too often, it is the members of the Council who seem to receive the largest financial benefits from these back-stage arrangements. Of course, those who have suffered cannot voice their concerns, because the Lodge will instantly label them as troublemakers who refuse to support Halfling business and destroy all hope of them ever making a profit. If censure doesn't work, then the heavies can be called in.
The Lodge dislikes such messier extremes (things go so much more smoothly when everyone works together) and it hates to involve human parties (why hire human thugs when Halfling thugs sit idle?)