Green’s Dictionary of Slang

to murder, to kill.

1931–4		D. Clemmer Prison Community (1940) 331/2: erase, vi. To wipe out, to kill.
1936		L. Pound ‘American Euphemisms for Dying’ in AS XI:3 198: Done for/erased/finished/flattened out.
1947		L.J. Valentine Night Stick 144: After Maione was arrested, orders were issued to ‘erase’ Catalano.
1971		E. Wilson Show Business Nobody Knows 124: Abe had feared he would be erased some day. It was one of the rules of the mobster game.