Copyright
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

. (page 21 of 38)
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 21 of 38)
Font size
QR-code for this ebook


no longer there. I think it is the center purpose, if I may say so, sir,
to accomplish the questions raised by the Senate rather than how it
was accomplished.

The Chairman. Mr. Hotfa, I may say this to you. The whole pur-
pose of this is to ascertain what conditions prevail in labor-manage-
ment relations and what legislation this committee might recommend
or what legislation the Congress of its own initiative might conclude
should be enacted in order to remedy the condition.

So the purpose is to show what conditions prevailed and whether
their rights were protected — whether it is necessary to enact addi-
tional laws to secure them tiie rights they are entitled to and to protect
them in the rights they are entitled to.

You have a constitution. The question is, here you have a constitu-
tion that gives you the power in these cases. We have had many in-
stances here where there have appeared before us officials of this union,
locals and higher echelons of the union official family, who have been
repeatedly convicted for crimes and who are still in office. Some of
them served their sentences long ago and are in office. Some of them
are more recent. We get down here to these particular cases of Glenn
Smith and Doling. Then we get to the case of Goldsteiii who is now
in the prison and, as I understand, according to the testimony, while
in prison is drawing $20,000 a year of dues-paying money.

The question is, how do you operate this section ? Do you enforce
it? Do you do anything about it, or is it necessary that the Congress
under these circumstances think it advisable to enact legislation to
deal with the problem ?

Mr. HoFFA. Senator, I have outlined, I believe as completely as I
can, irrespective of how many times I am asked the question, as to
what I will do under this provision of the constitution.

The Chairman. Now you were asked what you have done in the
past, and you said "Nothing" insofar as carrying out the provision is
concerned.

What different way do you think will accomplish the same result?

Mr. HoFFA. I would like to say something, if I may, before we close,
concerning this particular question.

Mr. Williams. I understand we were going to adjourn at 5 :30.

The Chairman. Just a moment.

After all, we will get to adjournment at the proper time. Make
your statement.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18959

Mr. HoFFA. I feel, Senator, I have an obligation as an American
citizen who appears in front of this committee in response to a sub-
pena to attempt to answer questions to the best of my knowledge and
my ability.

But I would like to register an objection to you, Senator McClellan,
and to this committee today, to the avowed intent and purpose of the
chief counsel of this committee as quoted in the Saturday Evening
Post.

He feels it is tiis duty to get Hoffa. '"I feel deeply that it is the obligation of
people with advantages to lead those who lack them." It is an ancient feeling,
the sense of aristocratic obligation ; it is deeply ingrained in Kennedy.

I question, sir

The Chair3IAn. Is that a quote from Mr. Kennedy I

Mr. Hoffa. No, but the whole article is based on what Mr. Kennedy
has consistently said.

The Chairman. Just a moment, I certainly am not going to hold
Mr. Kennedy or anyone else accountable for what a newspaper or
some publisher's opinion may be.

Mr. Hoffa. Senator, if I may say so, you hold me responsible for
every action of every individual that appears in front of this commit-
tee. You even hold me responsible for articles that somebody has
written.

The Chairman. You know the difference. Here you are the head
of a union with power vested in you by a constitution to take certain
action to keep that union — the conduct of its officers and of its ad-
ministration — clean and free from criminal activity.

Now you have a responsibility there. I would not take respon-
sibility for what any paper might publish unless it is a quote and
they attribute it to me and, if I did say it, I would take the responsi-
bility for it. If I didn't, I would not.

I am not going to hold Mr. Kennedy responsible for some article
in a paper unless he is quoted and is quoted correctly.

Mr. Hoffa. That rule applies to me.

Mr. Chairman. Yes, it applies to you, but it is not the same with
respect, sir, to your responsibility and duty as president of an inter-
national union, as to the conduct of the inferior officers over whom
you have jurisdiction and whom you have the power to discipline
according to your constitution.

Mr. Hoffa. Sir, it is my responsibility to be able to carry out the
constitution in such a way that it does not disrupt or destroy this
international union.

The Chairman. You have made that statement. I have not quar-
reled with you. That is the way you say you are going to do it. I
think it is the duty of the committee, and we are trying to develop
the testimony here as to how you do it, what you say you do, how
you operate, and the question arises whether that is adequate to
protect people who become the victims of wrong in your union and
the public and whether laws are needed to correct the condition.

Mr. Hoffa. I don't think you can say that the question of this
international union in behalf of its members in every contract we
have isn't amply protected.

The Chairman. Let us not argue here for hours. We know what
the record is. It is sworn testimony. Anything you want to say to

36751— 59— pt. 54 12



18960 IMPROPER ACTIVITIES IN THE LABOR FIELD

refute any testimony that is here is perfectly all right. I want you
to have that. But I don't want to go off here on tangents about what
some article may have said or didn't say.

We get right down to what the facts are and the Congress weighs
them and they can be governed accordingly.

(Members of the select committee present at this point in the pro-
ceedings: Senators McClellan and Ervin.)

Senator Ervhst. What I had in mind was this: Here is this man
Goldstein, who is the president of a local in New York, who has been
duly convicted and sentenced to prison for betraying his local, and
who has been serving a term for 3I/2 months that he has actually been
in prison, and who is now still drawing a salary at the rate of $20,000 a
year.

Wliat I would like to know is what do you, as president of the union,
of the international, with the power to remove him from his union
office, propose to do about it ?

Mr. HoFFA. Exactly as I told you.

Senator Erven. What is that?

Mr. HoFTA. To follow the constitution and to get the results that
the constitution intended without destroying this union through the
processes I stated, through the executive board.

If unable to do so there, to the members, and from the membership,
if necessary, to our executive board. But in my humble opinion, I
believe that the membership, the officers of this local union, fully
realize the constitutionality of this provision as passed by our con-
vention and will carry out instructions.

Senator Ervint. Then you are telling us, are you not, in a rather
circuitous way, that you, as president of the union, do not propose
to use the power you have under subsection (d), I believe it is, of
article 13, to remove him?

Mr. HoFFA. I am not telling you that at all, sir.

Senator Ervix. You say you are going to take it up with the local.

Mr. HoFFA. I will get the same results and will carry out the same
intent of that provision.

Senator Ervtn. How much longer will you allow him to draw
salary from dues-paying members at the rate of $20,000 a year while
serving a term in prison before you take action about it ?

Mr. HoFFA. You know. Senator, it is a peculiar tiling, if Mr.
Kennedy had this information for as long as he had it might have
been well to give it to me so I would have known it before yesterday,
sir.

I didn't know it before yesterday. You can't expect me, I don't
believe, to wait to come over here and still move over there at the same
time.

Mr. Kennedy. Do vou want me to name some other people that you
should remove, Mr. Hoffa ?

Mr. HoFFA. Not what you say remove. I want names as to this
particular individual, to a document that I submitted to you, which
you claimed were incorrect, which you failed to correct.

Mr. Kennedy. Plow much money has been given to Senator Bender
in connection with his investigation ?

Mr. Hoffa. I believe you have those figures far more accurately
than I have in my memory. You ought to put it into the record.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18961

Mr. Kennedy. Mr. Bellino, could we put those figures in ? Would
that be all right, Mr. Chairman ?

Mr. Williams. Mr. Chairman, we made travel plans in the light
of what you said, that we were going to adjourn at 5:30. Now we
are opening a whole new vista.

The Chairman. Your client wanted to get through in time to go
by 8 o'clock. I am trying to expedite it. I am going to quit pretty
soon.

I don't have any hesitancy about that. But we have a job to do
here. I am trying to make"^ as much headway as we can, as much
progress as we can.

Mr. Hoffa said he had to catch a plane by 8 o'clock. I assured him
we would get him there by that time.

Mr. Williams. Thank you very much.

The Chairman. Do you solemnly swear that the evidence you shall
give before this Senate select committee shall be the truth, the whole
truth, and nothing but the truth, so help you God ?

Mr. Belling. I do.

TESTIMONY OF CARMINE S. BELLINO

The Chairman. What is your name and what is your position with
the committee ?

Mr. Belling. Carmine S. Bellino, accountant with the committee.

The Chairman. You have been accountant for the committee since
its inception ; is that correct ?

Mr. Belling. That is correct, sir.

The Chairman. Proceed now.

Mr. Kennedy. Mr. Chairman, this is- ■

The Chairman. The question is about the money that has been paid
to Mr. Bender and his committee, the cleanup committee, or whatever
term is used for it, the rackets investigating committee, of the Team-
sters Union International.

What records do you have ?

Mr. IvENNEDY. Could I just explain what preceded this, Mr. Chair-
man?

This is local 239 which was run initially by Tony Ducks Corallo.
We went into the affairs of this local back in 1957. This man was
found guilty in 1957, and the information was developed at that time.
In 1958 when Mr. Hoffa appeared before the committee, he stated
Sam Goldstein was no longer an officer of the local union. Now he
states that he did not know about the information regarding Sam
Goldstein, and he also says that he has this investigating committea

I would like to ask Mr. Bellino how much the investigating com-
mittee has been paid in order to give this information to Mr. Hoffa.

Mr. Belling. The total amount paid to Mr. Bender for services and
expenses from August 18, 1958, to May 4, 1959, amounted to $58,636.07.

The Chairman. Has he reported any incidents to you at all that
should come to the attention of the executive board for disciplinary
action ?

Mr. HoTTA. Senator Bender •*

The Chairman. That is a question. Has his committee reported
anything to you at all that should come before your executive board
for its consideration with respect to disciplinary action ?



18962 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. HoFFA, No. He is in the process of investigation.

The Chairman. In 11 months he has not been able to find anything
to report to you ?

Mr. HoFFA. He was stopped by the court, I believe.

The Chairman. I didn't understand your last answer.

Mr. HoFFA. I say believe he was stopped by the court. They filed
an order and I believe he was stopped by the court, if I am not
mistaken.

The Chairman. Is there anything further ?

Mr. Kennedy. Up to what date were these charges of Mr. Bender
made ?

Mr. Belling. May 4, 1959.

Mr. Kennedy. Did he work almost every day ?

Mr. Belling. Pie was paid for 180 out of a possible 181 days.

Mr. Kennedy. And he also was paid by the International Broth-
erhood of Teamsters out of union fimds for the use of the office and
stenographic help ?

Mr. Belling. Yes, sir ; rent, telephone, and stenographic help.

Mr. Kennedy. Mr. Bellino, you received the subpena for the tele-
phone calls of the International Brotherhood of Teamsters ?

Mr. Belling. Yes, sir.

Mr. Kennedy. Do you fhid there were telephone calls made by Mr.
Hoffa to Glenn Smith at local 515 of the Teamsters in Chattanooga
during the period of time that Mr. Glenn Smith was allegedly
suspended ?

Mr. Belling. Yes, sir.

Mv. Kennedy. Could we have those ?

The Chairman. How many do you have ?

Mr. Belling. We have three.

The Chairman. Made from Mr. Hoffa to Smith?

Mr. Belling. They say from Hoffa — the first one I have is Hoffa,
one is from Bufalino, and from the Teamsters Building, and a third
one from Hoffa to Glenn Smith, but they reached a George Hicks.

The Chairman. Those may be made exhibit No. 13.

(Telephone toll tickets referred to were marked "Exhibit No. 13"^
for reference and may be found in the files of the select committee.)

Mr. KIennedy. Isn't it correct that the one from Mr. Bufalino was
on the same day that this letter was allegedly written ?

Mr. Bellino. Yes, sir. August 28.

Mr. Kennedy. Isn't it correct that on that same day, August 28,
Glenn Smith moved in court to get an injunction against the inter-
national office taking any action against him ?

Mr. Belling. Yes, sir. On that day Bufalino spoke to him for 9^
minutes.

Mr. Kennedy. So even before this letter, if this letter was sent,
even before it was possibly sent, the local union took action against
the international union ?

Mr. Belling. Yes, sir.

Mr. Kennedy. And these two other telephone calls from Hoffa to
Glenn Smith are on what days ?

Mr. Belling. One is on September 30, and the other one is on Jan-
uary 7, 1959.

The Chairman. The other is 1958?

Mr. Belling. 1958, yes, sir; the 30th.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18963

The Chairman. Do you wunt to make an explanation of those
calls, Mr. Hoffa ? *

Mr. Hoffa. I don't find anything significant about it; nothing.

Mr. Kennedy. There was one other matter, Mr. Chairman.

The Chairman. Mr. Bellino, the compilation of the expenditures,
the payments, to Mr. Bender and his committee, they may be made
exhibit No. 14, for reference.

(Document referred to was marked "Exhibit No. 14" for reference
and will be found in the appendix on p. 19126.)

Mr. Kennedy. Mr. Chairman, we have subpenaed Mr. Ray Cohen
to appear before the committee. He was to appear yesterday before
the committee. We received notification from his attorney that he
was ill and he would have to remain in bed for a week, because he had
a bad fever, and that he could not appear before the committee.

We have had testimony in connection with him.

We received information this morning that Mr. Cohen was on his
yacht, about which we had testimony, participating in a tuna tourna-
ment off the New Jersey coast. So, Mr. Chairman, we sent an in-
vestigator down to the dock to welcome JMr. Ray Cohen when he got
off the ^hip. I just received notification that he has just stepped off
the boat. He is looking tau and healthy, and we will have another
subpena for him.

But it would appear, in view of the fact that we were notified that
he was ill, he is certainly, if I might submit it to the chairman, in
contempt of the committee.

The Chairman. We will take that matter up.

Is the subpena being served on him now ?

Mr. Kennedy. That is correct, Mr. Chairman. I have the letter
here from the attoriie}'.

The Chairman, Direct him to be here Monday morning.

Mr. Kennedy. This is the letter from the attorney, saying he is too
iU to come.

The Chairman. Subpena the attorney also. We will find out
about this. I will not have this committee delil>erately and willfully
imposed upon.

Wo are going to take a lecess.

Do you want Mr. Hoffa back Monday ?

Mr. Kennedy. Can I point out a couple of things?

I want to point out that as far as Glenn Smith and Boling are
concerned, they admitted under oath, Glenn Smith did, that he took
$18,500 of union funds to fix the judge ; that the monitors looked into
it, and they were informed that Mr. Glenn Smith and Mr. Boling
were suspended

Mr. Williams. Is this going to be a question, Mr. Chairman?

The Chairman. Just a moment.

Mr. Kennedy. They were informed that Mr. Glenn Smith and
Mr. Boling were suspended; that we made an investigation and we
found out that not only were they not suspended but that Mr. Glenn
Smith took a leave of absence and turned the local over to Mr. Boling.
Mr. Smith took a leave of absence with 6 months' advance salary,
didn't do any work, and is on leave of absence at the present time.
All of their legal fees, amounting to some $15,000, were paid by the
Teamsters, even though this man has admitted — this is not a question



18964 IMPROPER ACTIVITIES IN THE LABOR FIELD

on trial — this man has admitted taking the money and using it to
try to corrupt the judge.

The Teamster attorneys being paid out of the union funds are
arguing in the case that he shouldn't have to pay tax on the money
because he was a conduit to a public official, or that he embezzled the
money and therefore shouldn't have to pay taxes on it.

The Chairman. The record shows tliat that testimony is in the
record.

Mr. Hoff a, do you want to make any correction of it ?

Mr. Williams. I believe that doesn't call for a statement. I tliink
it was simply a summary for the Sunday papers, Mr. Chairman.

The Chairman. Well, I hope people will read it. I think they
should be informed.

The committee will stand in recess until 11 o'clock Monday morning.

(Members of the select committee present at the taking of the re-
cess were Senators McClellan and Ervin.)

(Whereupon, at 5 :45 p.m., the select committee recessed, to recon-
vene at 11 a.m., Monday, June 29, 1959.)



INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD



MONDAY, JUNE 29, 1959

U.S. Senate,
Select Committee on Improper Activities

IN THE Labor or Management Field,

Washinffton, D.C.

The select committee met at 11 a.m., pursuant to Senate Resolu-
tion 44, agreed to February 2, 1959, in the caucus room, Senate Office
Building, Senator John L. McClellan (chairman of the select com-
mittee) presiding.

Present: Senator John L. McClellan, Democrat, of Arkansas;
Sam J. Ervin, Jr., Democrat of Xorth Carolina; Barry Goldwater,
Republican of Arizona; Carl T. Curtis, Republican of Nebraska.

Also present : Robert F. Kennedy, chief counsel ; Jerome S. Alder-
man, assistant chief counsel; Walter R. May, assistant counsel; John
P. Constandy, assistant counsel; Carmine S. Bellino, accounting con-
sultant; Pierre E. G. Salinger, investigator; Frank Lloyd, investi-
gator ; Ruth Y. Watt, chief clerk.

The Chl^irman. The committee will come to order.

Call the next witness, Mr. Counsel.

Mr. Kennedy. Mr. Chairman, we are starting the hearing this
morning which will go on through tomorrow morning, dealing with
the essential figure of Mr. Benjamin Dranow.

I thought I would summarize a little of the background that is
already in the record about Benjamin Dranow.

The matter that we are going to have this morning deals with
the land project known as Sun Valley, down in Florida. Sun Valley
was originally started by Mr. Henry Lower, a Teamster Union offi-
cial out in Detroit. He then became a promoter of this land scheme
down in Florida.

During the period of time he was promoting the land scheme
in Florida, he was a Teamster Union official and received some $90,-
000 in salary and expenses. At the time he was made a Teamster
Union official, he was a fugitive from a road gang in California.

Since our investigation of his activities, he has been picked up in
two separate States for the unlawful possession of narcotics.

Mr. Henry Lower began the project in Florida, which was mainly
to promote the sale of lots of land to Teamsters, Teamster members
and Teamster Union officials.

He got his start from Teamster Union funds themselves, the
original money that went into the Sun Valley plan.

The main purchasers of land were, as I say, Teamster Union mem-
bers and Teamster Union officials. There were official documents

18965



18966 IMPROPER ACTIVITIES IN THE LABOR FIELD

put out by the Teamsters Union to promote the sale to Teamster mem-
bers. There were movies taken of the land shown to Teamster Union
members. A number were prevailed upon to buy the lots.

Mr. Ploffa had, unknown to all the Teamster Union officials and
Teamster Union members, a 45 -percent option to purchase land down
there at its original cost, so that if it was profitable he could step in
at the original cost and buy up 45 percent of the property, he and
Owen Bert Brennan had this option which was unknown until our
hearings.

First, in June of 1956, Mr. Hoffa transferred $300,000 to a Florida
bank to induce the Florida bank to loan money to this land scheme.

Subsequently, the land scheme needed another $200,000, and then,
I believe in December 1956, Mr. Hoffa transferred another $200,000
down to the Florida bank to induce the Florida bank to loan money
on this land scheme of Henry Lower.

Mr. Henry Lower went to the bank and told them if they would
loan the money he in turn could get the deposits of these funds in
their bank, with the further understanding that the money would
be placed in the bank and pay no interest.

All of this property, Mr. Chairman, was sold to the Teamster
Union members with the understanding that there were roads, plumb-
ing, lighting, that everything was all set.

As we developed in our hearings, none of this was done. Mr.
Henry Lower took the money that was supposed to go into develop-
ing this land scheme and started his own other land operation up
in Detroit. Specifically, he took well over $125,000 that was sup-
posed to go into building roads in Florida and put it in up in
Detroit.

So ultimately, this land scheme went bankrupt.

The Chairman. Wliichone?

Mr. Kennedy. The land scheme at Sun Valley, Fla.

Even as of this time all the Teamster Union members who purchased
lots of land cannot go in there and fuid their lots, because not only
did he not build the roads or put in the plumbing or any of these
things, but he didn't even mark the lots of land so that anybody
would know, going in there, where his particular piece of property
was.

So that is one phase of it.

The Chairman. That we have already gone into, that is a matter
of record up to now ?

Mr. Ejsnnedy. Yes, sir.

The Chairman. Except I don't know about the bankruptcy. Had
it gone bankrupt ?

Sir. JCennedy. At the tim.e we held our hearings, indicating that
this had been a fraud on all the Teamster LTnion members and the
other individuals that purchased the ]>roperty, and also indicating
that the money coming out of the Florida bank didn't go into the land
scheme in Florida but V7as embezzled by Mr. Henry Lov/er. Tlien
the whole Ip.nd scheme went bankrupt.

The Chairman. The project that he put the money into on the
strength of the deposit that was made in the Florida bank, tlie loan
he secured on the strength of that deposit, did not go into the Sun
Valley project but went into a project in Michi



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 21 of 38)