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United States. Congress. Senate. Select Committee.

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. 54) online

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18918 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. HoFTA. I believe John T. O'Brien, if I am not mistaken.
Mr. IvENNEDY. Could I call Mr. Duffy, Mr. Chairman ?
The Chairman. Come forward, Mr. Duffy.

TESTIMONY OF LaVERN J. DUFFY— Resumed

The Chairman. Mr. Duffy, you have been previously sworn, have
you?

Mr. Duffy. Yes ; I was, Mr. Chairman.

TESTIMONY OF JAMES R. HOFFA— Resumed

Mr. Kennedy. Mr. Hoffa, just let me ask you a question.

Were Mr. Smith and Mr. JBoling suspended ?

Mr. Hoffa. I believe that Boling is driving a truck at this particu-
lar moment, to the best of my information. I don't know what Smith
is doing.

Mr. Kennedy. Have they been suspended?

Mr. Hoffa. Boling is not suspended. Since Boling is working
under a union-shop contract, necessarily to provide a livelihood for
himself he needs his union book where there is a union shop concerned.

Mr. Kennedy. I am asking if he has been suspended as an officer,
Mr. Hoffa.

Mr. Hoffa. I do not believe from what I know, and I am guessing
now what I am telling you, and what I pick up, but I believe that
Boling and Smith both are out as officers on suspension, or on leave
of absence.

Mr. I^NNEDY. They took leave of absence ?

Mr. Hoffa. Yes ; I am quite sure. I don't think Boling now, and I
think you have the record, I don't think Boling now is an officer even
on leave of absence. I believe Boling left, if I am not mistaken, from
his official position.

Isn't that correct, Mr. Kennedy ? You have the records.

Mr. IvENNEDY. Yes ; we do. Wliat concerns me is that the attorney
for the International Brotherhood of Teamsters assured the court
in November of 1958 that both Mr. Boling and Mr. Smith were
suspended. I refer to page 833.

The Chairman. Smith ?

Mr. Kennedy. Both Mr. Smith and Mr. Boling —

Notwithstanding the fact of the recommendations of the board, charges were
preferred against Boling and Smith and they were preferred at the interna-
tional level. They were suspended.

That is on November 13, 1958, on page 833.

Mr. Duffy, do we find from an examination of the records that Mr.
Boling and Mr. Smith were, in fact, suspended ?

TESTIMONY OF LaVERN J. DUFFY— Resumed

Mr. Duffy. I would like to read from the special call

Mr. I^nnedy. Would you just answer the question and then read?
Mr. Duffy. They were not.

Mr. Hoffa. Senator, may I ask a question, first, sir, for clarifica-
tion?



IMPROPER ACTIVITIES IN THE LABOR FIELD 18919

The Chairman. Yes, you may.

Mr. HoFFA. What time is he talking about now in regard to whether
or not they took a leave of absence or suspension ?

Mr. Kennedy. We will get into that.

What documents do you have before you, Mr. Duffy ?

Mr. Duffy. A special call meeting of the executive board of the
Teamsters Union Local 515, Chattanooga. I am readii.g from the
minutes of January 6, 1959.

The Chairman! You have identified it. Is that a copy of the
minutes that you have, or is it the original ?

Mr. Duffy. A photostatic copy, Mr. Chairman.

The Chairman. Did you get the original in the course of your
investigation, or did you only take a photostatic copy of them ?

Mr. Duffy. They wouldn't give me the originals.

The Chairman. But you were permitted to make a photostatic
copy and that is what you are testifying from ?

Mr. Duffy. That is correct.

The Chairman. That photostatic copy may be made exhibit No. 10.

(Document referred to was marked "Exhibit No. 10" for reference
ar.d may be found in the files of the select committee.)

Mr. Kennedy. Let's get this straight first. These are the minutes
of January 6, 1959 ; is that correct ?

Mr. Duffy. Correct.

Mr. Kennedy. Whom does it list as the officers of the local as of
that time ?

Mr. Duffy. Brother Glenn Smith, president.

Mr. Kennedy. Mr. Glenn Smith was president in January 1959 ?

Mr. Duffy. Yes. Mr. Boling, secretary-treasurer.

Mr. Kennedy. Do you find any time prior to that, from an ex-
amination of the records, that Mr. Smith or Mr. Boling were
suspended?

Mr. Duffy. They were not.

Ml-. Kennedy. Yet the court was assured that they had been
suspended ?

Mr. Duffy. In November they were assured that they had been
suspended.

The Chairman. What date was the matter before the court?

Mr. Kennedy. On November 13, 1958, Mr. Chairman.

The Chairman. Have you examined that record, Mr. Duffy, the
court record ?

Mr. Duffy. I have, Mr. Chairman.

The Chairman. What do you have with respect to it, documentarily
speaking ?

Mr. Duffy. There is no reference to that court action whatsoever
in these minutes.

The Chairman. I am not talking about the minutes of the meeting.
■\Yliat documents do you have with reference to the court action from
which you are testifying or can testify ?

Do you have a transcript of the court proceedings about which you
are testifying?

Mr. Duffy. I have, Mr. Chairman.

The Chairman. All right. The transcript, for purposes of refer-
ence, may be made exhibit No. 11.



18920 IMPROPER ACTIVITIES IN THE LABOR FIELD

(Transcript referred to marked "Exhibit No. 11" for reference and
may be found in the files of the select committee.)

The Chairman. Now, you may testify as to the contents of it.

Mr. Kennedy. First, you are going to go into what was said during
the court case, and then go into the minutes.

The Chairman. What do you find there with reference to the court
case in which Glenn Smith and Boling were involved, or reference
was made to them ?

Mr. Duffy. I quote from pages 368-369 of the court case, U.S. dis-
trict court, Cunningham v. English. Mr. Williams was questioning.
I will read that exchange.

The Chairman. Wliat are you reading ?

Mr. Duffy. U.S. district court case in Judge Letts' court.

Mr. Kennedy. The monitors' case ?

Mr. Duffy. Yes.

Question: Now, with respect to Boling and Smith, about whom there was
some testimony here, was an order of recommendation issued on their case?

Answer : Yes, sir ; that would have been order of recommendation No. 19,
which was issued on August 19, 1958.

Question : That is in evidence as a petitioner's exhibit, and does that likewise
direct that charges be filed against Boling and Smith in Tennessee?

Answer : Yes, sir.

Question : Does it likewise recommend that Boling and Smith be suspended
pending disposition of the charges?

Answer : It does.

Question : Was there a dissent filed by Monitor Wells in this case?

Answer : There was ; yes, sir.

Question : Before going into that, have Boling and Smith been suspended?

Answer : They have been suspended.

Question : Have charges been preferred against them?

Answer : Charges have been preferred.

I think that is sufficient.

Mr. Kennedy. That was on November 7, 1958 ?

Mr. Duffy. Yes.

Mr. Kennedy. And this is November 13, 1958, that you are reading
now?

Mr. Duffy. This is also U.S. district court, Mr. Williams
making a summary statement :

Mr. Williams. With respect to Boling and Smith : At the time. Your Honor,
that the request come from the Board of Monitors, charges had been pre-
ferred at the local level. The local had tried to seize jurisdiction, because they
didn't want charges to come from the International; and apparently in an
effort to thwart the taking of jurisdiction by the International, charges were
preferred against Boling and Smith at their own executive board level.

Notwithstanding that fact, at the recommendation of the Board, charges
were preferred against Boling and Smith, and they were preferred at the
International level. They were suspended ; a board was sent in to hear those
charges. Boling and Smith went into court, and they sought to enjoin the
hearing. They succeeded in getting a temporary restraining order. Your Honor,
but counsel from the International went in to Tennessee, resisted this, and
succeeded in winning the case, so that the hearing could go forward. The
hearing has gone forward, and it is now completed ; the evidence has been
taken, and we are awaiting the decision of the panel.

The Chairman. What date is that that the hearing had been com-
pleted and awaiting the decision of the panel?

Mr. Duffy. November 13, 1958.

The Chairman. I thought you said, Mr. Hoffa, it was still in
progress.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18921

Mr. HoFFA. The last information I have from the panel said it was,
to the best of my recollection, and I am recalling from memory. Mr.
Kennedy has a copy of it. He ought to read the report.

The Chairman. That is the report to the court.

Read that again.

What is the report to the court back on November 7, 1958, about
these charges against Smith and Boling? What disposition had
been made of them?

Mr. DuFFT (reading). The case is going forward and the hearing is now
completed. The evidence has been taken and we are waiting the decision of
the panel.

The Chairman. Who composes the panel ?

Mr. HoFFA. I believe John T. O'Brien, Frank Fitzsimmons, I think,
and I am not sure, maybe Gordon Conklin, of St. Paul, Minn.

Mr. KJENNEDY. That is Mr. Carl Mamango ?

Mr. HoFFA. No.

Mr. KENNEDY. He wasn't on it ?

Mr. HoFFA. No. Fitzsimons, O'Brien, and Conklin, I am quite
sure — O'Brien acting as chairman.

Mr. KIennedy. Do we have a letter there indicating

Mr. HoFFA. Yes, you have it.

Mr. Kennedy. I will try to find it.

Mr. HoFFA. Thank you.

Mr. Kennedy. We can find that, Mr. Chairman.

We will come back to that.

Senator Ervin. While you are looking for that, I would just like
to make this observation to Mr. Hoffa, who I do not believe is a lawyer.

In my judgment as a lawyer, your analogy to the action of a cor-
poration's board of directors is not relevant. If the officer of a
corporation is indicted for evasion of personal income taxes, it would
not be legal for the directors of the corporation to authorize his
defense. It would be an illegal act for which they can be held per-
sonally responsible.

Mr. HoFFA. Senator, I am not a lawyer, but I am sure that the stock-
holders have a perfect right to issue a bonus or some other method
of paying for the legal fees, if they want to.

Senator Ervin. Not except by unanimous consent.

Mr. Hoffa. This, I believe, was unanimous in our meeting, and it
was the same thing.

Senator Ervin. What meeting acted on this ?

Mr. HoFFA. I believe it was a meeting of the membership of the
local union, from the best information I have, that approved the
actions of the executive board. I believe in the first instance it was
the action of the director of the Southern Conference, who is presently
dead — Mr. Gale Murin.

Mr. Kennedy. Which case are you talking about? Are you talk-
ing about the use of the money initially ?

Mr. Hoffa. The Senator raised the question concerning what I said
about corporation stockholders as compared to our executive board,
and the question of the membership on a comparable basis, of whether
or not they could authorize expenditures of funds of their organi-
zation.

Mr. Kennedy. For the fixing of a judge ?



18922 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. HoFFA. That isn't what the Senator said.

Mr. Kennedy. Is that the case you are talking about? Could I
get that clear ?

Senator Ervin. I was asking him about authorization, about the
expenditure of union funds to defend Smith upon the charge of in-
come tax evasion, which was, of course, clearly a defense of an accusa-
tion of a personal crime which had no legal relationship whatever to
the union,

Mr. Kennedy. Mr. Duffy, from a review of the minutes of 1957 —
first, does it show that Glenn Smith was president and Boling secre-
tary-treasurer all during 1957 ?

Mr. Duffy. That is correct.

Mr. Kennedy. Even during this period of time when it was stated
before the court, in Judge Letts' court, during 1958 — even though it
was stated to Judge Letts' court that he had been suspended in
November ?

Mr. Duffy. That is correct. He was on the payroll.

Mr. Kennedy. All during 1958 both Glenn Smith and Boling
were officers ?

Mr. Duffy. Right.

Mr. Kennedy. Then on January 6, 1959, they took some action;
is that right?

Mr. Duffy. That is right.

Mr. Kennedy. Would you read the minutes ?

Mr. Duffy (reading) :

Special called meeting of the executive board, .January 6, 1959.

Brother Carmichael told the executive board we all know and are well aware
of the trial going on in Nashville, Tenn. Brother Smith and Brother Boling
have been through a lot and are under a lot of pressure and strain for the
past several months.

Brother D. L. Campbell made motion to give Brother Smith and Brother
Boling a 6-month leave of absence with full pay in advance.

The Chairman. ^Vliat?

Mr. DuFi^Y. Six months leave of absence with full pay in advance.

The Chairman. Full pay in advance ?

Mr. Duffy. Correct.

I might say, Mr. Chairman, that on January 6 I think the jury
went out on his income tax trial, and on January 7 he was convicted
for income tax evasion. So the night before they authorized this
expenditures.

The Chairman. All right.

Mr. Duffy (reading) :

Brother Sneed seconded the motion and the motion carried unanimously.

The Chairman. Are you reading from the minutes I have made
an exhibit ?

Mr. Duffy. That is correct.

Brother Carmichael stated that the minutes of the regular monthly meeting
held on March 4, 1958, that the funds of local union 515 may be used in any
way necessary to protect any of its members, agents, or oflScers who may be-
come involved in any trouble connected with the union activities in accordance
with that meeting of March 4, 1958. We need to borrow .$5,000 from the
Southern Conference of Teamsters to assist in the cost of the trial by Brother
Smith and Brother Boling.

Motion made by Brother Campbell to borrow .$5,000, to pay back $500 per
month.

The motion was seconded by Brother Sneed. Motion carried unanimously.



' IMPROPER ACTIVITIES IN THE LABOR FIELD 18923

Mr. ICennedy. Then did Mr. Glenn Smith receive his 6 months
salary in advance?

Mr. Duffy. Yes.

Mr, Kennedy. Identify the check.

Mr. Duffy. Check No. 11947, dated January 8, 1959, from the Truck
Drivers and Helpers Local 515, signed by Mr. Glenn Smith, presi-
dent, H. L. Boling, secretary-treasurer. The sum is for $5,129.80.
I might read what is on the check :

Payroll period January 16, 1959, to July 10, 1959, 6 months leave of absence,
recommended at executive board, approved by regular meeting January 6, 1959,
salary $6,110, withholding $980.20 ; net $5,129.80.

Mr. Kennedy. What period of time does that take him tlirough?

]Mr. Duffy. Through next month, July 10 of next month.

Mr. Kennedy. So he has received his salary in advance for all this
period of time ?

Mr. Duffy. That is correct.

Mr. Kennedy. He was never suspended. He just took a leave of
absence and got his salary in advance 'i

Mr. Duffy. That is correct.

Mr. Kennedy. What happened as far as Mr. Boling ?

Mr. Duffy. Mr. Boling took over the local.

Mr. Kennedy. Mr. Boling — they told the court that Mr. Boling had
been suspended ?

Mr. Duffy. Well, he hadn't been. Do you want me to read those
minutes '?

Mr. Kennedy. Yes.

Mr. Duffy. This is a special called meeting of the executive board
of local 515, January 20, 1959.

The purpose of this meeting is to discuss with the executive board the condi-
tion that presently exists due to the president and biisiness manager being
granted a leave of absence, and due to him accepting the leave of absence, based
upon his recent conviction of income tax pertaining to the indictments of 12
members of local 515 in 1951, and the payment of $18,500 to have these indict-
ments quashed.

Mr. Kennedy. Kead that again, please.
Mr. Duffy (reading) :

Tax pertaining to the indictments of 12 members of local 515 in 1951, and the
payment of $18,500 to have these indictments quashed.

Mr. Kennedy. That is right in the minutes ?
Mr. Duffy. Yes.

After a general discussion of the executive board it was discussed that due
to the uncertainty of Brother Smith's status of income tax evasion and probably
that this matter may be cleared up whereby Brother Smith could return to his
job, and due to the short time remaining in his unexpired term, that the executive
board appoint Brother Boling as president and business manager for the unex-
pired term ; "William A. Test as secretary-treasurer for the unexpired term, and
Brother George Hicks, Jr., as recording secretary for the unexpired term,
with the imderstandiug that any time before the end of the unexpired term, that
Brother Snuth has his legal difficulties clear away, he shall return to the same
position as before he left.

It is the recommendation of the executive board to the general membership for
approval of the executive board action.

Motion was made by Brother Carmichael and seconded by Brother Silas Cal-
lahan, tru.stee.



18924 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Kennedy. So Glenn Smith took the leave of absence, got 6
months' salary in advance, and turned the local over to Boling, who
was supposed to be suspended, but Boling took over the local ; is that
correct ?

Mr. Duffy. That is correct.

Mr. Kennedy. With the understanding that when Smith's legal
difficulties were resolved, he could come back and take over his old
position ?

Mr. Duffy. That is correct.

The Chairman. The photostatic copy of the check about which you
have testified, may be made exhibit No. 12.

(Check referred to was marked "Exhibit No. 12" for reference and
will be found in the appendix on p. 19125.)

Mr. Duffy. Could I read some more minutes? This is a special
called meeting of local 515 on January 20, 1959.

Meeting was called to order by Brother Glenn Smith at 7 p.m. The purpose
of this meeting is growing out of the indictment of 12 members of local 515 by
spending $18,500 we were able to get the indictment quashed.

The Chairman. What was that ?
Mr. Duffy (reading) :

The purpose of this meeting is growing out of the indictment of 12 members of
local 515 by spending $18,500 we were able to get the indictment quashed.

This is in the minutes of the meeting. Apparently they were writ-
ten by Mr. Smith.

Eight years later Brother Boling and myself were indicted on income tax
evasion. Brother Boling was acquitted. I was convicted. I have an appeal in
for a new trial. How long it will be, I don't know. At this time, I have been
under a lot of pressure, also Brother Boling. As you know, I am on a leave of
absence, and I would like to see this local left in good hands. I hope to return
soon, and, again, I may never return. If I get my legal diflficulties cleared away,
I will return to my job. I will also be a candidate for reelection the last of this
year, if my problems are cleared up. If not, I will not run for oflBce again.

At this time, I will ask that the executive board meeting minutes be read which
were held on January 20, 1959.

Motion was made to accept the reading of the minutes of the executive board.

Motion was made by Brother James ; seconded by Brother Carter.

Mr. Hoffa. Is he now saying that the minutes of the executive board
were read to the rank and file ? Is that what he is referring to ?

The Chairman. You refer there to some minutes being read; is
that correct ?

Mr. Duffy. That is correct.

The Chairman. What you are reading now are the minut«vS of a
rank-and-file meeting, are you ?

Mr. Duffy. This is a special called meeting.

The Chairman. A special called meeting ?

Mr. Duffy. It is not a regular meeting.

The Chairman. Not a regular meeting, but a special meeting called ?

Mr. Duffy. Eight.

The Chairman. And these minutes of the executive board of Janu-
ary 6 are now being read on January 20 to a membership meeting, a
special called membership meeting ; is that correct ?

Mr. Duffy. That is correct.

The Chairman. Does that clear it up ?

Mr. Hoffa, Yes.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18925

Mr. DuTTY (reading) :

Motion made by Brother James and seconded by Brother Carter. The ayes
carried unanimously.

Brother Smith said he wanted to thank all the members for the confidence they
had in him and he was sure the local was left in good hands.

Brother Boling said he would do the best he could with the local.

For the record, I am not going to take my leave of absence at this time.

Motion made and seconded to adjourn, at 8 :20 p.m.

W. A. Test, Recording Secretary.

Mr. Test was one of the individuals indicted in 1951, I might say.
A number of these other individuals that made motions at the meeting
were also indicted.

Mr. Kennedy. How much money was involved in the legal fees and
in the salary ?

Mr. Duffy, xittomey fees for Glenn Smith and Boling paid from
Teamster funds, total amount, $16,473.07.

Mr. Kennedy. How much of that came out of the Southern Confer-
ence of Teamsters ?

Mr. Duffy. Well, I can only tell you the attorneys who received the

Mr. Cecil Branstetter, Nashville, Tenn., received $5,150 ; Mr. Stanley
Rosenbloom, tax attorney, St. Louis, received $10,100 ; Mallinax, Wells
& Morris, a law firm in Dallas, received $1,223.07.

Senator Kennedy. Mr. Hoffa, any of this information which has
been coming out now, did you know that before now ?

Mr. Hoffa. Senator Kennedy, this is a local union affair, with rank-
and-file participation in a democratic fashion, conducting the affairs
of an autonomous local union. Unless it was brought to the attention
of the general president or the international union, we would liave no
way of knowing such information, and presently to my knowledge
there is no such information transmitted to the international union.

Senator Kennedy. In other words, what has been read here today
by Mr. Duffy is news to you, in regards, for example, to his compen-
sation in advance ?

Mr. Hofi



Online LibraryUnited States. Congress. Senate. Select CommitteeInvestigation 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. 54) → online text (page 16 of 38)