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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. 54) online

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the so-called paper locals that were set up by Mr. Jolmny Dioguardi
and Tony Ducks Corallo to gain control of the Teamsters in the New
York area for Mr. Hoffa ; isn't that correct ?

Mr. Gordon. I respectfully decline to answer that question on the
ground it may tend to incriminate me.

Mr. IvENNEDY. Isn't it correct that you obtained your position of
some prominence through the fact that your brother, Mr. Abe Gor-
don, operates Local 805 of the Teamsters ?

Mr. Gordon. I respectfully decline to answer that question on the
ground it may tend to incriminate me.

Mr. Kennedy. And Mr. Abe Gordon is one of Mr. Hoffa 's closest
associates in New York City ; isn't that correct ?

Mr. Gordon. I respectfully decline to answer that question on the
ground it may tend to incriminate me.

Mr. Kennedy. Isn't it correct that that is the reason you were able
to get this job and go on the payroll for $200 a week, because of your
contacts ?

Mr. Gordon. I respectfully decline to answer that question on the
ground it may tend to incriminate me.

Mr. Kennedy. Isn't it correct that one of these companies. Union
Local Sales, is now owned by you ?

Mr. Gordon. I respectfully decline to answer that question on the
ground it may tend to incriminate me.

The Chairman. Is that the one making some of these jackets? That
is Union Local Supply.

Mr. Kennedy. There are two companies. Maybe you could
straighten it out, Mr. Marks. Doesn't Mr. Gordon now have one of
these companies, Union Local Supply or Union Local Sales?

Mr. Marks. Union Local Sales.

Mr. Kennedy. You turned the company over to him ?

Mr. Marks. That is right.

Mr. Kennedy. What did they do. Union Local Sales ?

Mr. Marks. They wanted to do the same thing Union Local Supply
was doing.

Mr. Kennedy. Making the jackets?

Mr. Marks. Yes, sir.

Mr. Kennedy. Is that one of the folders ?

Mr. Marks. Yes, sir.

The Chairman. This may be made exhibit 24.

(Document referred to was marked "Exhibit No. 24" for reference
and may be found in the files of the select committee.)

Mr. Kennedy. One moment, Mr. Marks.

This company was to make the jackets, as well as certain other
kinds of cigarette lighters and cuff links and such things, all with the
Teamster emblem on them.

Mr. Marks. Not only Teamsters, but industrial and other union
locals.

Mr. KJENNEDY. Why did you turn the company over to Mr. Gordon ?



IMPROPER ACTIVITIES IN THE LABOR FIELD 19025

Mr. Marks. There was nothing there; it wasn't making anything.

Mr. IvENNEDY. Could you tell us why he turned the company over
to you ?

Mr. Gordon. Mr. Kennedy, I refuse to answer that question on the
ground it may tend to incriminate me.

Mr. Kennedy. Mr. Chairman, as we pointed out on page 4135 in
part 11 of the hearings before the committee, prior to Mr. Gordon's
getting in the paper local case and becoming an officer of local 651,
his occupation was with the Gordon Liquor Store.

The Chairman. Is that this Gordon you are talking about ?

Mr. Kennedy. That is right. That is local 651, which was com-
pletely a paper local. It had no membership.

His 1953 occupation was with the Gordon Liquor Store, and his
1954 occupation or only source of known income was with the Gordon
Liquor Store, and in 1955, the same, and in 1956 the same.

In 1955, he was listed as secretary-treasurer of local 651 of the In-
ternational Brotherhood of Teamsters, which had no membership.

Could you tell us how that came about? I think we asked you
before.

As I said, the major power behind Mr. Nat Gordon is his brother,
Abe Gordon, who I expect will be a witness tomorrow.

The Chairman. Do you wish to make any correction of the state-
ment by counsel ?

Mr. Gordon. Senator, I respectfully decline to answer that ques-
tion on the ground it may tend to incriminate me.

The Chairman. All right.

Mr. Kennedy. That is all, Mr. Chairman.

The Chairman. All right, stand aside. Call the next witness.

Do you need Mr. Marks any further ?

Mr. Kennedy. Mr. Marks, was there any discussion about the
labels inside the jackets?

Mr. Marks. Frankly, I don't remember if there was.

Mr. Kennedy. You don't remember whether there was. Did you
ever try to get union labels?

Mr. Marks. No.

Mr. Kennedy. You never did?

Mr. Marks. I was told that wq couldn't get it, and it made no
difference to me whether we did or not.

Mr. Kennedy. Did you mention the fact you were friendly with
Abe Gordon, or Abe Gordon might be able to get the labels ?

Mr. Marks. Never.

Mr. Kennedy. Abe Gordon's name never came up ?

Mr. Marks. No, sir.

Mr. Kennedy. You never even knew Nat Gordon's brother's name
was Abe?

Mr. Marks. Not prior.

Mr. Kennedy. At the time he was working with you, did you know
it then?

Mr. Marks. Yes, sir.

Mr. I^NNEDY. Did you say Abe Gordon could get the labels for
you?

Mr. Marks. Never, sir.

Mr, ICennedy. You never told that to anyone ; is that right ?



19026 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Marks. No, sir.

Mr. Kennedy. All right.

Mr. Phillip Pitell.

The Chairman. You do 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, Pitell. I do.

TESTIMONY OF PHILLIP PITELL

Mr. Kennedy. This is the last witness, Mr. Chairman.

The Chairman. State your name, your place of residence, and your
business or occupation.

Mr. Pitell. Phillip Pitell, 536 Garfield Street, Linden, N.J. Presi-
dent and treasurer and secretaiy of Grand Sportswear.

The Chairman. You are president of Grand Sport-swear?

Mr. Pitell. Yes, sir.

The Chairman. Is that a manufacturing company or a mercantile
company ?

Mr. Pitell. We are contractors.

The C'hairman. You contract for what; to sell or to manufactured

Mr. Pitell. Men's outer wear.

The Chairman. Do you make it or do you just sell it ?

Mr. Pitell. We make it.

The Chairman. You make them ?

Mr. Pitell. Yes, sir.

The Chairman. All right. Proceed.

Mr. Kennedy. Mr. Pitell, how long liave you been in that work, in
that line ?

Mr. PirELL. Six years.

(At this point Senator Goldwater withdrew from the hearing room
and Senator Ervin returned.)

Mr. Kennedy. Grand Sportswear Co. was temporarily out of work
in September of 1957 ; is that right ?

Mr. Pitell. Yes, sir.

Mr. Kennedy. And then did you receive notification from the union
representative that the Svirslcy Clothing Co. on Fifth Avenue, New
York City, was going to have some work available ?

Mr. Pitell. I was called into the Svirsky Co. at 8 o'clock the fol-
lowing morning.

Mr. Kennedy. Did you go in and see Svirsky ?

Mr. Pitell. That is right.

Mr. Kennedy. Would you tell us what happened then t

Mr. Pitell. When I got there in the morning, they showed me a
coat that they wanted made up, and they wanted to know if I was capa-
ble of making it. So I said I am equipped to make that kind of a
jacket because it has a combination of wool and leather. My plant
was equipped 100 percent to make leather, and so I could make the
wool and the leather.

So while we were over there they cut up one coat and they asked
me if I would be good enough to niake it and bring it back the same
day, because they wanted to bring it up to Detroit.

So I told them that I would.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19027

The Chairman. You mean they cut out the material ?

Mr. PiTELL. That is riojht.

The Chairman. You took it to your phint and made it into a jacket ?

Mr. PiTELL. Yes, sir.

So I did it and I brouj^ht it back, and tliat is how we got the first
sample made.

Mr. Kennedy. Who was at this meeting— Mr. Seymour Svirsky ?

Mr. Pitell. Yes, sir.

Mr. Kennedy. Was anybody else from the company there ?

Mr. Pitell. Well, he ran the show.

Mr. Kennedy. Did he indicate to you at that time how many jackets
would be made?

Mr, Pitell. Well, he said the figures would be terrific, and we would
have work for years.

Mr. Kennedy. How many were indicated to you ?

Mr. Pitell. When we first got together, he quoted about 80,000.

Mr. Kennedy. 80,000 ?

Ml-. Piteli.. Yes, sir.

Mr. Kennedy. And, subsequently, did he indicate to you that there
would be even more jackets?

Mr. PiTEix. He said there is no limit to how far we could go.

Mr. Kennedy. What did you understand by that? Did they indi-
cate there was going to be a jacket for every Teamster Union member?

Mr. Pitell. I was glad to believe that.

Mr. Kennedy. Did they indicate it to you? I am sure you were
glad to believe it, but did they indicate it to you?

Mr. Pitell. Not exactly indicate, but they came in a romidabout way
to make me understand that there was supposed to be one jacket for
every member of the Teamsters Union.

Mr. Kennedy. This was going to be a very profitable operation and
keep you very bus}^ for a long period of time.

Mr. Pitell. It was supposed to be.

Mr, Kennedy. So you made up the jacket, and they said it would
have to be taken out to Detroit for approval and brought back. Did
they get in touch with you after that ?

Mr. Pitell. Well, then, I was going to go away for a vacation.

Mr. Kennedy. Did you start making up the jackets ?

Mr. Pitell. After hanging around Svirsky's place for about 3
weeks, they finally made the connections or got the wool and we started
cutting. We were put into production.

Mr. Kennedy. How many jackets did vou make up ? From Febru-
ary 13, 1958, through August 15, 1958,* you made a total of 15,824
jackets?

Mr. Pitell. The exact figure I wouldn't know, but it is around
that.

Mr, Kennedy. Is that what the record shows?

Mr. Belling. 15,824 jackets, which were sold or charged to the
Teamsters, made up by this witness. He made up a little more than
that, but that is all that Svirsky charged the Teamsters.

Mr. Kennedy. What was the labor cost on each one of them ?

Mr. Pitell. At the beginning it was $2.22 per coat. And after
we were making them a while, I saw that it was impossible to continue
so I asked for another quarter. After due fighting, and what I mean
is arguing back and forth, I got it.



19028 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Kennedy. Now, then, Svirsky went into bankruptcy ; is that
right?

Mr. PiTELL. That is right.

Mr. Kennedy. Did you continue to make Teamsters jackets then?

Mr. PiTELL. Well, then I was approached by the Union Local
Supply.

Mr. Kennedy. They asked you to make up some jackets ?

Mr. PiTELL. That is right.

Mr. Kennedy. Now, Seymour Svirsky was in that company; is
that right?

Mr. PiTELL. All indications pointed to it, but I couldn't swear.

Mr. Kennedy. Wlio do you think ran that company ?

Mr. PiTELL. The way they operated, I even thought it was Mr.
Marks, and he told me, "Seymour Svirsky has to be in on this," and
he sure must have been, because he gave me the material with a medi-
cine dropper.

Mr. Kennedy. How many jackets did you make up for that com-
pany? Was it over 3,000 jackets?

Mr. PiTELL. Approximately 2,000 men and 1,000 ladies.

Mr. Kennedy. You made up Teamster jackets for the women Team-
ster members ; is that right ?

Mr. PiTELL. That is right.

Mr. Kennedy. And at the time the labor cost was from $3.10 to
$3.25 a garment?

Mr. PiTELL. Yes, and I was to supply some sort of material in there.

Mr. Kennedy. Now, having performed the work yourself of making
these jackets, how much would you have charged if you received a con-
tract directly from the Teamsters Union to make up the jacket ? How
much would you have made the jackets for?

Mr. PiTELL. Well, now, at which prices — the prices in 1958 or pre-
vailing prices as of now ?

Mr. Kennedy. In 1958, when the contract was first awarded.

Mr. PiTELL. I could have made those jackets for $10.50.

Mr. Kennedy. That would have included a profit ?

Mr. PiTELL. I hope so.

Mr. Kennedy. Now, the Teamsters were actually charged, Mr.
Bellino, how much ?

Mr. Bellino. From $12.75 to $13.75.

Mr. Kennedy. You would be glad to make up the jackets for $10.50 ?

Mr. PiTELL. I could make it cheaper than anybody because I
wouldn't have the overhead that a larger man has, and I could work on
a smaller margin of profit.

Mr. Kennedy. Were you ever contacted to place a bid other than the
contract through these people ?

Mr. PiTELL. No, sir.

Mr. Kennedy. But if you had been contacted to place a bid, you
would have been able to make them for $10.50 ?

Mr. PiTELL. Yes, sir.

Mr. Kennedy. Now, Mr. Bellino, if the Teamsters had obtained the
jackets directly from Mr. Pitell, instead of through Benjamin Dranow,
how much would that have saved the Teamsters ?

Mr. Belling. They could have saved approximately $52,000.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19029

Mr. Kennedy. So $52,000 of Teamsters Union funds were used need-
lessly in this case. There is no information, is there, that bids went
out generally to companies to find out how much they would make
these jackets for?

Mr. Belling. No.

Mr. I^nnedy. It just went through Benjamin Dranow, and he, in
turn, awarded the contract ?

Mr. Belling. That is correct.

Mr. Kennedy. If it hadn't been handled in that way, the saving
could have been at least $50,000 ?

Mr. Belling. That is correct.

Mr. Kennedy. Was there any discussion about placing the union
label on these jackets?

Mr. PiTELL. When I first started in the early part of 1958, we were
putting in the union label.

Mr. Kennedy. You were?

Mr. PiTELL, We were.

Mr. Kennedy. That was for Mr. Svirsky ?

Mr. PiTELL. That is right, and he was supplying it. Then we ran
out of the labels, and I didn't put any more in.

Mr. Kennedy. So then what happened ?

Mr. PiTELL. Well, I was told to go over

Mr. Kennedy. Did you raise a question about putting in a union
label?

Mr. Pitel. To be frank with you, as long as they didn't want it in
there, I could save money on it.

Mr. Kennedy. I understand you could save money by not sewing
it in.

Mr. PrrELL. That is right.

Mr. Kennedy. But did a question come up about the union label ?

Mr. PiTELL. Yes. I was asked to go over to the union office and
purchase the union labels.

Mr. Kennedy. T\^io asked you to do that ?

Mr. PiTELL, Sol Marks.

Mr. Kennedy. He asked you to purchase the label ?

Mr. PiTELL. Yes. When I went over there, I was told I could not
purchase them, the jobber would" have to purchase the union labels
and give them to me. In other words, no contractor can buy a union
label. It is supposed to be supplied by the jobber.

Mr. Kennedy. So what happened then ?

Mr. PiTELL. I was told that I couldn't get them.

Mr. Kennedy. So did you go back and tell Sol Marks.

Mr. PiTELL, I went back and told Sol Marks,

Mr, Kennedy, What did he say ?

Mr. PiTELL. He said, "You go back there again and tell them to see
Abe Gordon."

Mr. Kennedy. He told you to go back and see the union and tell
them to see Abe Gordon ?

Mr. PiTELL. To see Abe Gordon. So when I went back there, I was
talking to the manager of local 575, that is in our union

Mr. Kennedy. The ILGWU?

Mr. PiTELL. It is not the international.

Mr. Kennedy. Amalgamated?



19030 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. PiTELL. Yes, amalgamated. He told me, he said, "Phil, I
don't want to have nothing to do with this." He said, "I don't want
to have no trouble with no Abe Gordon or anybody." He said, "If
jou want the union label in there you got to get it through your job-
ber." And that is how it remained.

Mr. Kennedy. Did you put the label in ?

Mr. PiTELL. No.

Mr. Kennedy. Did you think it was surprising, when making these
jackets for union members, that there wasn't going to be any union
label?

Mr. PiTELL. Personally, I didn't care. I saved a quarter of a cent
a coat by not putting it in.

Mr. Kenned. Because you didn't have to sew it in; is that correct?

Mr. PiTELL. Well, I have to compensate the girls when they put
in anything extra.

Mr. Kennedy. Did you go back and report to Sol Marks what the
imion official had said?

Mr. PiTELL. I did.

Mr. Kennedy. What did he say ?

Mr. PiTELL. Nothing was done about it. Nothing was said.

Mr. Kennedy. You never put the union labels in ?

Mr, PiTELL. No.

Mr. Kennedy. What did you understand Nat Gordon had to do
with this company ?

Mr. PiTELL. Well, as far as I knew, he was a salesman.

Mr. Kennedy. Did you have any contact with him yourself?

Mr. PiTELL. And then he came to my place one day and said, "Phil,
there is no more Union Local Supply. From now on it is Union
Sales."

Mr. Kennedy. Who owned Union Sales?

Mr. PiTELL. The checks were signed by Nat Gordon.

Mr. Kennedy. The checks were signed by Nat Gordon?

Mr. PiTELL. Yes.

Mr. Kennedy. He took over, evidently, Union Sales?

Mr. PiTELL. What the deal was, I wouldn't know.

Mr. Kennedy. That is all, Mr. Chairman.

The Chairman. Is there anything further?

The committee will stand in recess until 10:30 in the morning.

(Members of the select committee present at time of recess: Sen-
ators McClellan and Ervin.)

( Wliereupon, at 4 :05 p.m. the select committee recessed, to recon-
vene at 10:30 a.m., Tuesday, June 30, 1959.)



INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD



TUESDAY, JUNE 30, 1959

U.S. Senate,
Select Committee on Improper Activities

IN THE Labor or Management Field,

Washington^ D.G.

The select committee met at 10:30 a.m., pursuant to Senate Reso-
lution 44, agreed to February 2, 1959, in the caucus room, Senate
Office Building, Senator John L. McClellan (chairman of the select
committee) presiding.

Present : Senators John L. McClellan, Democrat of Arkansas ; Sam
J. Ervin, Jr., Democrat of North Carolina ; Frank Church, Democrat
of Idaho ; Barry Goldwater, Republican of Arizona ; Carl T. Curtis,
Republican of Nebraska.

Also present : Robert F. Kennedy, chief counsel ; Jerome S. Adler-
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, GAO in-
vestigator ; Ruth Y. Watt, chief clerk.

The Chairman. The committee will be in order.

(Members of the select committee present at the convening of the
session were Senators McClellan and Curtis.

The Chairman. Call the next witness.

Mr. Kennedy. Mr. Chairman, we are going into a different trans-
action this morning, and this is a transaction that will deal with two
individuals who have been associated with the Teamsters in one way
or another: Mr. Benjamin Dranow and Mr. Louis Triscaro, who is
second in charge of the Ohio Conf ei"ence of Teamsters.

The first witness of approximately seven or eight witnesses is Mr.
Earl T.Benjamin.

The Chairman. Will you come around, Mr. Benjamin ?

Mr. Benjamin, will you be sworn ?

Do you 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. Benjamin. I do.

TESTIMONY OF EARL T. BENJAMIN

The Chairman. State your name, your place of residence, and your
business or occupation.

^ Mr. Benjamin. Earl T. Benjamin. I live at 3981 West 140th
Street, Cleveland, Ohio, and I am president of Welded Construction
Corp.

19031



19032 IMPROPER ACTIVITIES IN THE LABOR PIELD

The Chairman, That is a building fii*m, is it ?

Mr. Benjamin. It is a steel fabricating firm.

The Chairman. Do you waive counsel, Mr. Benjamin?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. Mr. Benjamin, you are a pilot ?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. You have been associated with airplane ventures
and have been a member of the Port & Harbor Commission of
Cleveland?

Mr. Benjamin. Yes, sir.

Mr, Kennedy. In 1957, you received a telephone call from a friend
from California, Mr. William Steiner ; is that right?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. And he told you of the fact that there were some
surplus Government planes that were up for sale ?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. These were planes known as C-74 Globemasters ?

Mr. Benjamin. Yes, sir.

Mr. KJENNEDY. Could you tell us what they were ?

Mr. Benjamin. Well, the planes he said were coming up for sale
were the original C-74 Globemasters, originally starting out as a
DC-7 before they had the large bulk cargo fuselage.

Mr. Steiner stated that it would take very little to certify these air-
planes and get them as usable cargo planes for industry, the aircraft
industry.

Mr. Kennedy. It was going to be the largest piston-drive airplane
in commercial operation?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. And it was designed to carry 170,000 pounds of 125
troops, plus a crew of 9 ?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. And it could accommodate a cargo as large as a 21/^-
ton truck ; is that right ?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. The plane was never placed in civilian operation,
was it ?

Mr. Benjamin. No, sir.

Mr. Kennedy. Due to the Korean war ; is that right ?

Mr. Benjamin. Yes, sir.

Mr. I^.nnedy. And the cost to the Government was $1.5 million
apiece ?

Mr. Benjamin. I don't know what the Government cost was.

Mr. Kennedy. I believe that is w^hat the records show.

Mr. Benjamin. Yes, sir.

Mr. Kennedy. Wliat did Mr. Steiner suggest to you at that time?

Mr. Benjamin. Mr. Steiner suggested that he could take care of
the certification end and what the deal would be would be that peo-
ple would come in with the money of 50 percent, and 25 percent would
go to Mr. Steiner and 25 percent to myself and 50 percent to the people
that financed the project, which was to be ratified when we sat down
to the negotiations.

Mr. Kennedy. So, Akros Dynamics Corp. was formed in April
of 1957?



IMPROPER ACTIVITIES IN THE LABOR FIELD 19033

Mr. Benjamin. Yes, sir.

Mr. Kennedy. It was incorporated actually on April lY, 1957, for
the purpose of purchasing these airplanes ?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. Now, on the first bid that you put in, which was for
$1.5 million, for how many of these airplanes ?

Mr. Benjamin. For $1.5 million we bid all 11 airplanes and all of
the parts and the whole catalog.

Mr. Kennedy. And the Government rejected all of the bids; is that
right?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. On what grounds ?

Mr. Benjamin. On the grounds I have been informed there wasn't
enough money for them.

Mr. Kennedy. And then they readvertised ?

Mr. Benjamin. They readvertised on a negotiated sale, and the
second time we bid $1,581,000 but we did not get the 27 engines that
went in the first package.

Mr. Kennedy. Did you receive the airplanes themselves ?

Mr. Benjamin. No, we were awarded the the contract.

Mr. Kennedy. For how many of the airplanes 'i

Mr. Benjamin. We were awarded the contract for all 11.

Mr. Kennedy. And it was some of the parts you did not get?

Mr. Benjamin. Well, we made payment to the Government of
$500,000 and we received four aircraft and a portion of the parts.

Mr. Kennedy. That was in the summer of 1958, was it?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. And the price was $1,581,000 ?

Mr. Benjamin. Yes, $1,581,000.

Mr. Kennedy. Originally you had expected to obtain some backing
through a Cleveland restaurant owner by the name of Mike Zap-
pone?

Mr. Benjamin. He would get the people to finance the project.

Mr. Kennedy. And ultimately it was found that he could not handle
it or his people could not handle it, and then Mr. Al Naiman was
brought into the deal, and he was to help finance it; is that right?

Mr. Benjamin. Yes, sir.

Mr. Kennedy. For the details, the contract with the U.S. Air Force
was amended to jjrovide payment to the U.S. Air Force of $500,000
on August 24, 1958, and $200,000 on November 5, 1958, and eight
equal monthly payments thereafter of $110,167.75 commencing on
December 1, 1958 ?

Mr. Benjamin. That is correct.

Mr. Kennedy. With a half percent interest on the principal bal-
ance payable from August 25 with each installment?

Mr. Benjamin. That is right.

Mr. Kennedy. The agreement further provided for the release of
four planes on the payment of $500,000 with the others to be released
as payments covering them was made ?

Mr. Benjamin. That is correct.

Mr. Kennedy. Now, you and Mr. Naiman went to the Pan Amer-
ican Bank of Miami, Fla., to try to obtain some financing?



19034 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Benjamin. Yes, sir.

Mr. Kennedy. And there you negotiated a loan; is that right?

Mr. Benjamin. That is correct.

Mr. Kennedy. Now, it was determined by the bank that they could
not make the loan needed by Akros without additional collateral;
is that right ?

Mr. Benjamin. That is right.

Mr. Kennedy. So a rather complicated transaction then occurred?



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