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Investigation of improper activities in the labor or management field. Hearings before the Select Committee on Improper Activities in the Labor or Management Field (Volume pt. 5) online

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INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD



HEARINGS

BBFORH THD

SELECT COMMITTEE

ON IMPROPER ACTIVITIES IN THE

LABOR OR MANAGEMENT FIELD

EIGHTY-FIFTH CONGKESS

FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, 85TH CONGRESS



MARCH 26 AND 27, 1957



PART 5



Printed for the use of the Select Committee on Improper Activities in the
Labor or Management Field




INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD



HEARINGS

BEFORE THE

SELECT COMMITTEE

ON IMPEOPER ACTIVITIES IN THE

LABOE OE MANAGEMENT FIELD

EIGHTY-FIFTH CONGRESS

FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, &5TH CONGRESS



MARCH 26 AND 27, IGSl



PART 5



:Prlnted for the use of the Select Conmiittee on Improper Activities in the
Labor or Management Field




UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHBiGXON : 1957

(PUBLIC )-
. _ \l oH/



^



^351



Boston Public Library-
Superintendent of Documents



SELECT COMMITTEE ON IMPROPER ACTIVITIES IN THE LABOR OR
MANAGEMENT FIELD
JOHN L. McCLELLAN, Arkansas, Chairman
IRVING M. IVES, New York, Vice Chairman
JOHN F. KENNEDY, Massachusetts JOSEPH R. MCCARTHY, Wisconsin

SAM J ERVIN, JB., North Carolina KARL E. MUNDT. South Dakota

PAT MCNAMA^A, Michigan BARRY GOLDWATBR. Arizona

ROBERT F. Kennedy, Chief Counsel
Rdth Yodng Watt, Chief Clerk

n



CONTENTS



Area: Seattle, Wash. (Beck)

Appendix 1 685

Testimony of —

Beck, Dave 1511, 1538, 1654

Shefferman, Nathan 1578, 1592, 1632

EXHIBITS

117. Harris Trust & Savings Bank check dated Julv 25, 1949, ducL-d Appears

pavable to Dave Beck in the amount of $8,000 signed by on page on page
Nathan W. Shefferman 1584 1685

118. Harris Trust & Savings Bank check dated January 17,

1950, pavable to Dave Beck in the amount of $4,000

signed by Nathan W. Sheflf erman 1 584 1 686

119. Note from desk of Dave Beck to Mr. Shefferman asking

him to pay T. Yorozu Gardening Co. $1,918.15 and

receipt from T. Yorozu Gardening Co 1 604 1 687-

1688
120A. Statement from T. Yorozu Gardening Co. to Dave Beck

dated November 29, 1952, in the amount of $179.86 1606 1689

120B. Statement from T. Yorozu Gardening Co. to Dave Beck

dated October 31, 1952, in the amount of $440.38 1606 1690

120C. Statement from T. Yorozu Gardening Co. to Dave Beck
dated August 30, 1952, in the amount of $182 and note

■ from desk of Dave Beck to Mr. Shefferman 1606 1691-

1692
120D. Statement from T. Yorozu Gardening Co. to Dave Beck
dated September 30, 1952. in the amount of $184 with

note from desk of Dave Beck to Mr. Shefferman 1606 1693-

1694

121. Statement from Prentice Nursery & Decorating Co. to

Dave Beck dated Julv 22, 1952, in the amount of

$2,159.77 ' 1607 1695

122. Note from desk of Dave Beck to Mr. Shefferman asking

that he forward check to Prentice Nursery in the amount

of $4,534.94 1608 1696

123. Statement from Saks Fifth Avenue in the amount of

$90.92 1609 1697

124. Statement from Haymarket Clothing Co. dated February

9, 1954, to N. W. Shefferman, shipped to Dave Beck, 2

coats in the amount of $270 1612 1698

125. Statement from H. Sulka & Co. in the amount of $179.50

with note from desk of Dave Beck "Please pay this

account— Dave" . 1613 1699-

1700
126A. Samples of items purchased for Dave Beck bv Nathan

Shefferman I 1615 1701-

1703
126B. Sample of items purchased for Dave Beck, Jr., bv Nathan

Shefferman J 1615 6704

127. Nine folders of bills in bulk (*)

128A. Harris Trust & Savings Bank check dated June 8, 1949,
payable to Dave Beck in the amount of $100 and signed

by Nathan Shefferman 1635 1705

128B. Harris Trust & Savings Bank check dated December 23,

1949, payable to Dave Beck in the amount of $427.40

and signed bv Nathan Shefferman 1635 1706

128C. Harris Trust & Savings Baiik check dated October 27,

1950, payable to Olympic Hotel in the amount of $224.10

signed by Nathan Shefferman 1 635 1 707

♦May be found in the files of the seleet committee.

in



IV



CONTENTS



128D. Harris Trust & Savings Bank check dated October 28, duoed Appears
1950, pa.vable to Dave Beck in the amount of $200 and on page on page
signed by Nathan Sheflferman 1635 1708

128E. Harris Trust & Savings Bank check dated Februarj^ 15,

1950, payable to Dave Beck in the amount of $300 and

signed by Nathan Sheflferman 1635 1709

128F. Harris Trust & Savings Bank check dated July 25, 1950,
payable to Olympic Hotel in the amount of $200 and
signed by Nathan Sheflferman 1635 1710

128G. Harris Trust & Savings Bank check dated August 15.
1952, payable to Dave Beck in the amount of $200
signed by Nathan Sheflferman 1635 1711

128H. Harris Trust & Savings Bank check dated September 17,
1952, payable to Dave Beck in the amount of $750 and
signed by Nathan Sheflferman 1635 1712

1281. Harris Trust & Savings Bank check dated September 17,

1952, payable to Dave Beck in the amount of $200 and

signed by Nathan Shefferman 1635 1713

128J. Harris Trust & Savings Bank check dated January 23,

1951, payable to Dave Beck in the amount of $150 and

signed by Nathan Sheflferman 1635 1714

128K. Harris Trust & Savings Bank check dated March 9, 1951,
payable to Dave Beck in the amount of $125 and signed
by Nathan Sheflferman 1635 1715

128L. Harris Trust & Savings Bank check dated September 24,
1951, payable to Dave Beck in the amount of $200 and
signed bv Nathan Sheflferman 1635 1716

128M. Harris Trust & Savings Bank check dated .January 2, 1953,
payable to Olympic Hotel in the amount of $100 and
signed by Nathan Sheflferman 1635 1717

128N. Harris Trust & Savings Bank check dated January 15,

1953, payable to Dave Beck in the amount of $100 and

signed by Nathan Sheflferman 1635 1718

1280. Harris Trust & Savings Bank check dated February 14,
1953, payable to Dave Beck in the amount of $200 and

signed bv Nathan Sheflferman 1635 1719

128P. Harris Trust & Savings Bank check dated July 13, 1953,
payable to Dave Beck in the amount of $150 and signed
by Nathan Sheflferman 1635 1720

129. Labor Relations Association of Chicago check dated June

11, 1952, in the amount of $750 and signed by Shelton

Sheflferman 1648 1721

130. Four checks of Brown Equipment Co. dated June 21, 1954,

for $50,000 each pavable to Dave Beck 1677 1 722-

1725

131. International Brotherhood of Teamsters, Chauflfeurs, and

Warehousemen check No. 136 dated April 7, 1955, in
the amount of $163,215 and signed by Dave Beck,
president, and John J. English, general secretary 1679 1726

132. Letter to Joint Council 28. Building Association and

Western Conference of Teamsters, signed by Dave

Beck, dated, December 30, 1954 1680 1727-

1728

133. Accord and satisfactory agreement signed by Frank

Brewster and Dave Beck dated Julv 7, 1954 1680 1729-

1730

134. Letter dated December 29, 1955, to Joint Council 28

Building Association and Western Conference of

Teamsters, and signed by Dave Beck 1681 1731

135. Note from desk of Dave Beck to Bill saying to send check

in amount of $5,629 payable to public relations divi-
sion, and International Brotherhood of Teamsters
check No. 8544 dated October 9, 1953. in the amount of

$5,629 payable to public relations division 1682 ^^32-

17d4
Proceedings of—

March 26, 1957 1509

March 27, 1957_. 1591



INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD



TUESDAY, MARCH 26, 1957



Select Committee on Improper Activities

IN THE Labor or Management Field,

Washington^ D. C.

The select committee met at 10 a. in., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the caucus room, Senate Office Build-
ing, Senator John L. McClellaii (chairman of the select committee)
presiding.

Present: Senator John L. McClellan, Democrat. Arkansas; Senator
John F. Kennedy, Democrat, Massachusetts ; Senator Irving M. Ives,
Republican, New York; Senator Sam J. Ervin, Jr., Democrat, North
Carolina; Senator Pat McNamara, Democrat, Michigan; Senator
Joseph 11. McCarthy, Republican, Wisconsin ; Senator Karl E. Mundt,
Republican, South Dakota; Senator Barry Goldwater, Republican,
Arizona.

Also present : Robert F. Kennedy, chief comisel of the select com-
mittee; Jerome Adlerman, assistant counsel; Alphonse F. Calabrese,
investigator; Carmine Bellino, accountant consultant; Ruth Young
Watt, chief clerk.

(Members present at the convening of the session: The chairman,
Senators Ives, Ervin, McNamara. Kennedy, and Mimdt.

The Chairman. The Chair wishes to announce to the audience that
you are here as guests of the committee. You are welcome but we ask
each of you to give us your full cooperation by helping us keep order
so that these proceedings may continue, when they start, uninterrupted.

The Chair feels that it is appropriate that he should make a brief
opening statement for the record before the witness who is scheduled
to testify today is called to the witness stand.

In the course of an investigation regarding operations of labor
imions and their relationship with governmental agencies, conducted
by the Senate Government Operations Permanent Subcommittee on
Investigations during the latter part of last year and the early part of
January of this year and prior to the establishment of this select com-
mittee, information was discovered clearly indicating the misuse of
union funds by Mr. Beck, International President of the Brotherhood
of Teamsters, Chauffeurs, Warehousemen and Helpers of America.

As chairman of that subcommittee I so advised Mr. Beck by letter,
January 5, 1957, and invited him to be present at the hearings that
subcommittee had scheduled for January 15, 1957, for the purpose of
giving him an opportunity to answer such charges and derogatory testi-
mony as might be testified at that time.

1509



1510 IMPROPER ACTIVITIES IN THE LABOR FIELD

Tliereaf ter, on January 17, Mr. Beck wired me :

In compliance with doctor's instructions, I am unable to accept your invi-
tation to apijcar in Washington before your subcommittee Friday, January 18.

Subsequently, this select committee was created on January 30,
1957, by Senate Resolution 74, of the 85th Confess, and commmiica-
tions have taken place between Mr, Beck and myself as chairman of
the select committee since that date.

In the course of that correspondence, I, as chairman of this select
committee, advised Mr. Beck by letter on February 16, 1957, that :

It is expected that your testimony wiU be desired by the committee. As you
know information has already been develoi?ed refiecting upon your personal
financial operations as related to union activities.

In that letter, I also advised Mr. Beck that :

It is anticipated that further information of that nature will be developed
by the committee during hearings at an early date,

and suggested —

This, no doubt, is of interest to you and the select committee will be very
glad to have you attend the hearings,

I, therefore, requested that in the meantime :

I request that you instruct your attorney, or executive assistant to make avail-
able to the committee all of your personal financial records from 1950 to date.

And I advised him that :

The information they will provide is essential to a thorough and proper
examination into an investigation of the issues involved.

A subsequent exchange of telegrams between Mr. Beck and the
chairman have already been placed in this record, culminating in his
agreeing to appear before this committee today and have present his
financial records that the conmiittee has requested.

This hearing today was scheduled primarily to allow Mr. Beck to
turn over to the committee certain of his personal financial books and
records. I think it fair and proper to say that during the past 10
days, evidence was developed before this committee supplemented
by additional information that the committee has, that clearly in-
dicates that from the years 1949 through the first 3 months of 1953, Mr.
Beck took more than $320,000 from the teamsters union treasury in
Seattle.

From the information now before this committee that money so
taken by Mr. Beck was neither a gift nor a loan to him from the
union. That and other evidence already before this committee show-
ing the loose and irresponsible management of union funds by high
union officials has caused this committee, the rank and file of union
members and the public at large, to have a deep concern.

It is something in which this committee under its mandate and re-
sponsibility has a dii'ect interest and an official duty to reveal the
facts, to get the truth about such practices and to recommend to the
Senate remedial legislation to prevent such occurrences in the fu-
ture.

It is almost trite to say that it is most disturbing to have informa-
tion in this record indicating that the president of the Interna-
tional Brotherhood of Teamsters, Chauffeui-s, Warehousemen, and
Helpers of America, the largest and most powerful union in our coun-
try, may have misappropriated over $320,000 of union funds.



IMPROPER ACTIVITIES IN THE LABOR FIELD 1511

Therefore, tlie urgent necessity for this committee to receive the
financial books and records of Mr. Beck, that he has been requested to
produce and also to have him appear as a witness and explain to this
committee and to the people of the United States all of the facts sur-
rounding his taking of this money from the union's treasury is most
apparent.

I regard this testimony as indispensable if the committee is to
establish a complete and truthful record. We are, therefore, glad
to give Mr. Beck this opportunity to appear and we invite his whole-
hearted and enthusiastic cooperation to the end that the truth may
be established.

Does any other member of the committee wish to make any comment
before we proceed to take testimony ?

Senator Ives. I simply want to state that I concur absolutely in what
you had to say. I think we all feel the same way about it.

The Chairman. Thank you very much, Senator Ives.

Are there any other comments before we proceed ?

Senator Ervin. I just concur and adopt what Senator Ives said,
which expresses my views on this subject, and what the chairman
has said.

The Chairman. If there is nothing further, the witness, Mr. Beck,
will come around. You are present and you will stand and be sworn.

You do solemnly swear that the evidence you shall give before this
Senate select committee shall be the truth, the whole truth, and noth-
ing but the truth, so help you God ?

Mr. Beck. I do.

The Chairman. Be seated.

TESTIMONY OF DAVE BECK, ACCOMPANIED BY HIS COUNSELS,
ARTHUR D. CONDON, DAVID FOSS, AND KENNETH SHORT

The Chairman. Will you state your name, your place of residence
and your business or occupation for the record ?

Mr. Beck. My name is Dave Beck and my residence is 16749 Shore
Drive, Seattle, Wash., and my office address is 25 Louisiana Avenue,
Washington, D. C, and I am president of the International Brother-
hood of Teamsters, Chauffeurs, Warehousemen and Helpers of
America.

The Chairman. Mr. Beck, under the rules of the committee, a wit-
ness appearing has the right to have counsel present to advise him
regarding his legal rights. Have ^ou counsel present today?

Mr. Beck. Part of my counsel is present. Chief counsel Senator
Duff is not present. Mr. Condon, associated with him, is present, and
Mr. David Foss, associated with Senator Duff is present.

The Chairman. Mr. Condon and Mr. Foss ?

Mr. Beck. And Mr. Kenneth Short who has the records with him
is also present.

The Chairman. Counsel for Mr. Beck will state their name and
their places of residence and give their office location please.

Mr. Condon. My name is Arthur Condon, my home is in Annapolis,
Md. and my office is 1000 Vermont Avenue, Washington, D, C.

Mr. Foss. My name is David Foss and I live at 2800 Quebec Street,
Washington, D. C, and this is my office in Washington.



1512 IMPROPER ACTIVITIES IN THE LABOR FIELD

The Chairman. Thank you very much, gentlemen.
. Mr. Beck, yesterday the Chair received a communication from you
which I interpreted as one that you desired to read at the opening of
the hearings today, under rule 7 of the committee rules. Is that
correct ?

Mr. Beck. That is correct. I Avould like to have my counsel read
it, if there is no objection from the chairman.

The Chairman. Let me see now. You are the udtness.

Mr. Beok. That is right.

The Chairman. You signed it?

Mr. Beck. That is right.

The Chairman. I suggest you read it.

Mr. Beck. I will be glad to read it.

Mr. Condon. Could we have the original ?

The Chairman. I have the original.

Mr. Beck. This communication is under date of March 25, 1957,
addressed to the Honorable John L. McClellan, chairman of the Sen-
ate Select Committee on Improper Activities in the Labor or Manage-
ment Field, Washington, D. C.

In accordance with i-ule 7 of the rules of procedure of your committee, the
following? statement is filed herewith :

Pursuant to Senate Resolutions 74 and 88, 85th Congress, 1st session, your
committee has required my appearance today together with my personal records.
I have appeared, and I have with me the records which the committee has
demanded.

A purpose of this committee under the resolution establishing it is to "conduct
an investigation and study of the extent to which criminal or other improper
practices or activities are, or have been engaged in in the field of labor-manage-
ment relations, or in groups or organizations of employees."

Insofar as this purpose seeks to establish, determine, or adjudicate "criminal
practices or activities" the functions of tliis committee to such end constitute a
usurpation of executive and judicial prerogatives not bestowed upon the Con-
gress, the Senate, or this committee under the Constitution and hence, are in
violation of articles I, II, and III of the Constitution. Consequently this objec-
tion to the committee's lack of jurisdiction is fully reserved.

In view of nationwide newspaper, radio, and television accounts of the pro-
ceedings before this committee and the testimony in connection therewith, and
further in view of proposed criminal actions against me of which I have been
advised are arising out of alleged violations and further in view of other asserted
or implied violations of Federal and State laws, I intend to assert all privileges
as to anything I might say, and T have a detei'mination not to waive or imply
the waiver of any protection and privileges afforded me by the Constitution and
the Bill of Rights as to any question which may be propounded to me or to the
production of my records.

Respectfully submitted.

Dave Bp:ck,
25 Louisiana Avenue, Washington, D. 0.

The Chairman. Thank you very much, Mr. Beck. The original
should be returned for the committee's files. Here is a mimeographed
copy of it which counsel may use.

Mr. Beck, does that conclude your prepared statement and opening
statement?

Mr. Beck. Yes, Senator. Mr. Chairman, I would say it would.

The Chairman. Then it becomes, as I interpret this statement, the
duty of the Chair to rule on the question you raise as to the jurisdic-
tion of this committee.

I interpret the third paragraph of your letter to me, which you have
just read, as challenging the jurisdiction of this committee to interro-
gate you regarding the subject matter under inquiry.



IMPROPER ACTIVITIES IN THE LABOR FIELD 1'513

Is the Chair's interpretation correct according to your intent and
j)nrpose ^

(The witness conferred with his counsel.)

Mr. Beck. Yes; I do challenge the jurisdiction.

The Chairman. Then it becomes the duty of the Chair to rule upon
it, subject to his ruling which may be appealed by any member of the
committee to the vote of (he committee, and if no appeal is taken the
Chair will appeal it himself to the committee for their approval or
disapproval of his ruling.

The Chair overrules the challenge to the committee's jurisdiction.
There is no doubt in the C'liair's mind that this committee under the
i-esolution of the Senate establishing it has had delegated to it by the
United States Senate as an arm of that body a duty to conduct the
character of investigation that the committee is now in course of
conducting, and that duty and the responsibility under the mandate of
that resolution that is vested in this committee charges the committee
with the duty of interrogating this witness about the matters that are
involved in these headings, and particularly those matters that the
Chair referred to in his opening statement.

As to the contention that it violates articles I, II, and III of the
Constitution, the Chair would remind those who are interested that
section 8 of article I of the Constitution provides —

The Congress shall have power to lay and collect taxes, duties, imposts, and
excises, to pay the debts and provide for the common defense and general wel-
fare of the United States; but all duties, imposts, and excises shall be uniform
throughout the United States.

Under that paragraph 1 of section 8, which the Chair has just read,
the Congress is charged with the duty of enacting laws that will pro-
tect the common defense and general welfare of tliis country.

Since the Congress has enacted laws legalizing and authorizing
certain organizations of laboring people, and since those laws were
within the jurisdiction and within the authority of the Congress to
enact, it is the continuing duty of Congress to constantly review those
laws, to ascertain how they operate, how they are administered and
the results achieved therefrom, and, where necessary or where advis-
able, to amend, change, modify, or repeal such laws.

I would also call attention to the third paragraph of section 8 of
the Constitution which says that the Congress shall have power to
regulate commerce with foreign nations and among the several States,
and with the Indian tribes.

I need not refer to other sections of the Constitution to sustain
the position that the Chair has taken in overruling this challenge.
I think practically all of our labor laws are based upon the com-
merce clause of the Constitution.

Certainly if we have the authority to legislate in any area, the
Congress has the authority, and any legally constituted committee
of the Congress has the authority, to investigate in any area m which
it has a duty and responsibility to legislate.

That is the ruling of the Chair, gentlemen of the committee.

Senator Mundt. So that we can know exactly where we are at
the very beginning ♦of this hearing, I would like to move that the
ruling of the Chair be sustained.

Senator Kennedy. Second the motion.



1514 IMPROPER ACTIVITIES IN THE LABOR FIELD

Senator Goldwater. Second the motion.

Tlie Chairman. The motion has been heard that the ruling of the
Chair be sustained. It has been duly seconded.

Is there any discussion ?

Senator Ixncs. I would like to make a comment in that connection,
Mr. Chairman. In your discussions of the Constitution and what is
intended by the Constitution, and what is intended by the Senate set-
ting up this committee, I think that I should point out that among our
duties is to ascertain whether there has been any law violations as
well as these other things that you have mentioned. I do not think
that you mentioned law violation. That is just as important as all of
the rest of these things. There is no point in our enacting legislation
in the Congress if it is going to be disregarded and if it is not going
to be observed and that is what we have got to find out and we have
to find out what the causes are.

There is no question in my mind but what the Senate intended us
to have this power in setting up this committee. If the Senate has
the power the committee has the power, so you are challenging the
Senate itself, and you are challenging the Congi-ess itself in the chal-
lenge you make. You are challenging, moreover, the whole Govern-
ment of the United States.

Senator Kennedy. I was just going to say four members of this
select committee are members of the Labor Committee which has direct
jurisdiction over amending any laws which may be necessary involving
the rights of labor. For that purpose, they were placed on the
select coinmittee and, therefore, I do not think tliat there is any
question that the select committee has the right to interrogate Mr.
Beck.

Mr. Condon. Mr. Chairman

The Chairman. Just one moment, until this motion is disposed of.

Is there any further discussion, gentlemen?

You have heard the motion, and tliose favoring the motion say
"Aye," opposed "No."


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