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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 Chairman. I know he has been reimbursed now.

Mr. Naiman. He would have been reimbursed anyhow, sir,
because

The Chairman. Why were you having it handled that way ? What
I am trying to get at is what 'interest did the local labor organization
have in paying your expenses down there in a plane deal? Why
should they ever pay it in the first place ?

Mr. Naiman. They shouldn't pay it, sir, but they were reimbursed
for it.

The Chairman. I know, but I don't understand wliy they paid it
in the first place. Do you ?

Mr. Naiman. It may be that I wasn't there when he checked out.
I don't know. That could happen, too.

The Chairman. I don't know why they would need to pay your bill.

Mr. Naiman. I don't need anybody to pay my bills, sir.

The Chairman. I didn't say you did. That is the strange thing
about it. It was after this investigation got underway that you reim-
bursed them,

]Mr. Naiman. Certainly, Senator, I wouldn't for 1 minute think of
having anybody pay $50 or $100 to pay my expenses. I don't need that.

The Chairman. *^That is the mystery about it. Why should a labor
organization, a local, want to send a check to the hotel to pay your bill ?
Can you explain it ?

They don't just do those things gratuitously, I don't suppose. There
was the man with you signing the checks.

Mr. Naiman. Yes, sir. Senator, but it could be with the idea, pos-
sibly, that he knows he would get reimbursed.

The Chairman. Why didn't he just let vou pav your bill to begin
with?



IMPROPER ACTIVITIES IN THE LABOR FIELD 19063

Mr. Naimax. As I told you before, Senator, maybe I wasn't present
at the time. Maybe we had to leave right away to catch a plane. I
don't know.

Mr. Kennedy. What was the union paying his bill for ?

Mr.NAiMAN. Sir?

Mr. Kennedy. What was the union paying his bill for ?

The Chairman. I can't see where there is any cost or expense in this
trip that should be charged to the union dues-paying members.

Mr. Naiman. Only for the purpose that he knew I would reimburse
him back again, sir, and that is the truth.

The Chairman. You said he would be reimbursed. But I am talk-
ing about what was the reason

Mr. Naiman. If he did it that way. I don't even know.

The Chairman. What was the reason for the labor local to pay the
expense of this trip down there, when you were down there on a
matter of trying to sell airplanes ? Can you explain that ?

Mr. Naiman. If he did, it was only for the purpose that he knew
he was getting it right back.

The Chairman. Didn't he go down there with you ?

Mr. Naiman. Yes, he did, sir.

The Chairman. At your request ?

Mr. Naiman. Yes, sir.

The Chairman. And went to Cuba at your request ?

Mr. Naiman. That is right, sir.

The Chairman. So you were not on business for the local labor
organization at that time, were you ?

Mr. Naiman. He had some other things he was doing, too.

The Chairman. I am talking about as far as you are concerned and
when he was with you.

Mr. Naiman. You see, I am not an attorney. I came without an
attorney. I don't want to get into debates with you because I would
lose.

The Chairman. I am not an attorney or physician at the moment.
I am trying to find out if there is any reason on earth why a local labor
organization should out of its dues money pay the expense of a trip
down there to sell airplanes.

Mr. Naiman. That was only with the idea that if he did do tliat, he
knew he was getting it back.

The Chairman. Well, he got yours back. I don't know whether
the union got his back or not. Do you ?

Mr. Naiman. Ask your investigators. They sure do.

Mr. Kennedy. They didn't get it back until we started our investi-
gation, as Mr. Constandy can show.

Mr. Naiman. I know, but don't the records show they got their
money back ?

Senator Goldwater. Mr. Counsel, might I call something to coun-
sel's attention, and possibly it would help here. Both of these bills
were charged ; is that not correct?

Mr. Constandy. That is correct.

Senator Goldwater. Cash or check was not offered at the time they
checked out ?

Mr. Constandy. That is correct.



19064 IMPROPER ACTIVITIES IN THE LABOR FIELD

Senator Goldwater, One of these bills was signed by Alvin Naiman,
the other was signed by Louis Triscaro, but both of them gave the
address of the Akros Dynamics Corp.

Mr. CoNSTANDY, That is correct.

Senator Goldwater. The hotel statement was signed on March 19,
but the bill was paid by check on May 21, from the Excavating, Build-
ing Material, Construction, Drivers and Race Track Employees Local
Union 436 ; is that not correct ?

Mr. CoNSTANDY. That is correct.

Senator Goldwater. It is almost 2 months later.

Tlie Chairman. Two months later and paid by the local.

Senator Goldwater. The question I have in mind is why did Mr.
Triscaro give your corporation as his address ?

Mr. Naiman. I didn't get that, sir.

Senator Goldwater. Why did Mr. Triscaro in signing his bill at
the hotel give your corporation as his address ?

Mr. Naiman. Because it is probably our bill.

Senator Goldwater. No, you have a bill and he has a bill. He
signed both of them, by the way. It is his signature that authorizes
them to be charged. Your signature of entry into the hotel is on one,
and his is not on the other.

Mr. Naiman. Did I understand you correctly, sir, to say that he
signed both bills ?

Senator Goldwater. Yes. Louis Triscaro signed both bills.

Mr. Naiman. And charged it to Akros ?

Senator Goldwater. That is right. But the union paid the bill.

Mr. Naiman. Then that is a mistake, sir.

Senator Goldwater. It is not a mistake. Two months later they
paid the bill and the hotel sent

Mr. Kennedy. Mr. Constandy can clarify what happened.

Senator Goldwater. I wanted to get into the record that Triscaro
signed both of these.

Mr. Naiman. Then probably I am right, that maybe I wasn't pres-
ent at the time, that we had to go out and meet a plane. I certainly
had no intention of having anybody pay my bills. I don't need any-
body to pay my bills.

Senator Goldwater. But the bill came to your office, because your
office address is on there.

If it came to you, why didn't you pay it? Why did you send it on
to Triscaro to have the union pay it?

Mr. Naiman. Did I send it on to him ?

Senator Goldwater. I didn't say you did. He paid it. I don't
know how you got it to him.

Mr. Constandy. I think that bill was sent to Mr. Triscaro at his
own office address as he changed it when he signed the folio.

Mr. Kennedy. Explain what happened.

Mr. Naiman. There could have been a mistake all around.

Mr. Constandy. When both Mr. Triscaro and Mr. Naiman checked
in they gave as their business address the Akros Dynamics Corp.,
care of Mr. Naiman's office address. However, when they checked out,
Mr. Triscaro signed both bills and at that time gave his own address,
so that the bill was sent to Mr. Triscaro and was in turn paid by the
local union.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19065

Another point on this is that this bill never had been charged to
Mr. Naiman. Mr. Naiman has never made any reimbursement of this
particular bill. Both yesterday and tliis morning I went over with
Mr. Naiman on the breakdown of the check which he gave to Mr.
Triscaro about being a reimbursement and the breakdown as he gave
it to me then was that the airplane fare was $206.

Mr. Kennedy. What airplane?

Mr. CoNSTANDY. I liavc here the bill.

Mr. Kennedy. There were a number of bills, in clarification, of Mr.
Triscaro and Mr. Naiman where the local paid the bill ; is that correct?

Mr. CoNSTANDY. That is correct.

Mr. Kennedy. And this was just one of those ?

Mr. CoNSTADY. This was one of those.

Mr. Kennedy. And the records show that Mr. Naiman has still not
reimbursed the local union for those bills, for this particular one?

Mr. CoNSTANDY. That is correct.

Mr. Kennedy. He has reimbursed them within the last couple of
days in connection with some of these others ?

Mr. CoNSTANDY. Ycs. The other one on which he made reimburse-
ment was purely the trip to New York, and New York to Miami
and back to Cleveland. That is the only one on which reimbursement
was made.

On that reimbursement, the breakdown is $206 for plane fare,
and I have before me the American Airlines transportation receipt
on Universal Air Travel ticket for one ticket from Cleveland to
La Guardia to Miami and Cleveland, purchased on February 11, 1959,
the date that Mr. Herbert Burris, Triscaro, and Mr. Naiman traveled
to New York City to confer with Mr. George Burris.

The charge for that flight was $206.75.

Mr. Kennedy. Was that just for Mr. Triscaro I

Mr. CoNSTANDY. Just for Mr. Triscaro. The bill for that flight
was charged to local 436 and payment for that charge and others
billed to local 436 was made by check on April 23, drawn on the ac-
count of local 436 in the amount of $589.83 ; $206.75 is for the flight
that Mr. Triscaro took on behalf of Mr. Naiman.

The Chairman. When was the union ]-eimbursed by Mr. Naiman
for this expense?

Mr. Constandy. If I may. Senator, there are two other parts to
the reimbursement and I will cover them first.

The Chairman. All right.

Mr. CoNSTANDY. The second breakdown Mr. Naiman gave me was
$188 for hotel expenses, and that figure corresponds with the charge
to Mr. Naiman and Mr. Triscaro at the Montmartre Hotel, in Miami
Beach, Fla.

Mr. Kennedy. What day I

Mr. Constandy. February 12 and 13.

Mr. Kennedy. So the local union paid for that also?

Mr. Constandy. The local union paid that bill. That bill was in
the amount of $188.37. The folio was charged to Mr. Louis Triscaro
for himself, and I might add that the folio for Mr. Triscaro includes
the charge of $2.89 and bears the notation, "Alvin Naiman," and
indicates that that charge was incurred at the restaurant, so that
Mr. Naiman 's restaurant charge for that meal was paid by Mr.



19066 IMPROPER ACTIVITIES IN THE LABOR FIELD

Triscaro, whose own entire bill of $188.37 was paid by check 3675,
of local 436, on March 23. That was in the amount of $188.37.

The last item on the reimbursement that Mr. Naiman speaks of
is for $248 out-of-pocket expenses.

The Chairman. $248 out-of-pocket expenses ?

Mr. CoNSTANDY. Yes. That would be for cab fares and so forth.
Again, the figure corresponds to an expense account that Mr. Triscaro
submitted to his local union in the amount of $248.40. However, the
expense account commences on Monday, February 9, and if you would
like, I will read the pertinent notations from it.

Mr. Kennedy. This is of some significance, Mr. Chairman, as we
go along, because of the contacts that were had with Mr. Hojffa, as
will come in later on, in connection with an attempt to obtain a loan
from the International Brotherhood of Teamsters for this company,
and the fact that Mr. Triscaro 's contacts, as you will see from this
expense account, were all charged to the union and then later reim-
bursed by this gentleman within the last week or so.

The Chairman. All right.

Mr. CoNSTANDY. The expense account, written in hand, I assume,
by Triscaro, reads —

Total expense for 6 days, Washington, New York, Miami, Washington, commenc-
ing Monday night, February 9, 1959, cab to airport, supper for four and back,
$22.45.

The plane flight was canceled and the next entry is Tuesday, Febru-
ary 10, a charge for airport breakfast, $6.10, cab to the International
Brotherhood of Teamsters Building, Washington, D.C., $4. Cab to
airport and supper, $11.10. This is the date preceding the meeting
in Cleveland between Mr. Herbert Burris, Mr. Naiman and Mr.
Triscaro.

This indicates that Mr. Triscaro traveled from Cleveland to Wash-
ington to the IBT Building and back to Cleveland the day preceding
the meeting in Cleveland.

Mr. Kennedy. On behalf of Akros Dynamics ?

Mr. CoNSTANDY. Well, the bill includes this; yes.

Mr. Kennedy. Subsequently, when he was trying to get reim-
bursed, when Mr. Triscaro was attempting to get reimbursed from Mr.
Naiman, he included the charge that he made on February 9, to Wash-
ington, D.C, to a visit to the International Brotherhood of Teamsters,
a taxicab back to the airport and back to Cleveland, on February 10,
which was the day that preceded the meeting in Cleveland between
Mr. Naiman, Mr. Burris and Mr. Triscaro.

Mr. CoNSTANDY. That is correct. The rest of this expense voucher
runs through the 11th, 12th, 13th, and 14th, and includes the out-of-
pocket expense in connection with that trip to New York and then
Miami and back to Cleveland.

The Chairman. How much does it total ?

Mr. CoNSTANDY. $248, the same figure Mr. Naiman gives me as his
out-of-pocket expenses for Avhich he reimbursed Triscaro. The last
entry on this voucher is again interesting, in that the day they rushed
from Miami, following the signing of the agreement in Miami, the
following day, February 16, Mr. Triscaro again traveled from Cleve-
land to Washington, and his expenses of $17.40 were included among
the $248 for which he was reimbursed.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19067

Mr. Kexnedy. So once aojaiii the tri]> to Washington, D.C, the fol-
lowing day was reimbursed by Akros Dynamics ?

Mr. CoNSTANDY. Yes. Mr. Triscaro had drawn a check of $248.40
on February 17, 1959, drawn against the local union account, for his
out-of-pocket expenses in connection with this trip, and the stub nota-
tion shows —
Expense to Washington and New York and Miami, Fla., $248.40.

The Chairman, Let these documents be made a part of an exhibit.
What have you testified to?

Mr. CoNSTANDY. I liave testified to the airline transportation ticket
and the check in support of the payment.

The Chairman. Let those documents be made exhibit No. 28.

(Documents referred to were marked "Exhibit No. 28" and may be
found in the files of the select committee. )

The Chairman. That includes the last expense account, exhibit No.
28. That was for $248.40.

Mr. Constandy. From his best recollection yesterday and today,
he gave a total figure of $642 having been repaid to Triscaro by him.
We have procured from the local union, Mr. Triscaro's local union in
Cleveland, a photostatic copy of the check to Mr. Louis Triscaro, dated
June 1, 1959, bearing the number 3848 and in the amount of $643.52,
signed Alvin Naiman, and endorsed "Reimbursement to Louis Tris-
caro, airplane trip to New York City and Miami, hotel and pocket
expenses," and the endorsement is then Louis Triscaro, with the stamp
of the local union.

The Chairman. According to your statement, to your examination
of the record, the check for $643.52, dated June 1, was reimburse-
ment to Triscaro but does not include these last items we have been
talking about down in Miami ?

Mr. Constandy. No, it does include those items, but it doesn't in-
clude the hotel bill about which we were discussing before I started,
the one at the Eden Roc.

Mr. Kennedy. It includes the February trip, Mr. Chairman, but it
does not include the March trip. That is the point. It includes the
$600 for the February trip, but not the IMarch one.

The Chairman. It does not mclude Mr. Naiman's bill that was cov-
ered by $139. 75 check ?

Mr. Constandy. That is correct. ^

The Chairman. It does not include that ?

Mr. Constandy. That is correct.

The Chairman. So Mr. Naiman still owes the local. In order to
get the account straight, he is still due to reimburse the local for this
last hotel bill in Miami ?

Mr. Constandy. That is correct.

Mr. Kennedy'. And one of the most significant parts, of course, is
the fact that the check, although dated June 1, actually it can be
shown

Mr. Constandy. Yesterday this check was in the pocket of an em-
ployee of the local union, and had not been cashed at the bank, had not
been deposited in the bank. So it bears no bank marks. There was
another document. The ledger card of the local union, which is the
second card, carries entries from October 23, 1958, miscellaneous cash
receipts for the local union, and runs through to the last entry, which
is dated Jmie 27, 1959.



19068 IMPROPER ACTIVITIES IN THE LABOR FIELD

The last entry is the one about which we are concerned. Under re-
marks explaining it, it reads, "Reimbursement for plane trip and
hotel, Alvin Naiman, check 3848, June," the date is illegible, "expense,"
and the date it was paid is June 27. It is the last entry on the ledger
card and would indicate that it was the last received, the one prior
to it beiiLs: June 25.

Mr. KJENNEDY. So this conforms with the testimony of the witness
that he dated it back to June 1 so that it would appear that they had
reimbursed the local, and Mr. Triscaro had not taken this money
improperly from the union, that the union had been reimbursed prior
to the time of our investigation, which would have been, as far as
Mr. Naiman is concerned, June 1. That is the reason that the check
was dated June 1, to try to precede that.

Actually, although dated June 1, it was not turned over to the union
and Mr. Triscaro until last week, as Mr. Naiman has stated.

The Chairman. Is there anything further ?

That last document you testified to, the last two documents, may be
made a part of exhibit No. 28.

Mr. Kennedy. Mr. Constandy, isn't it correct that the first time
you interviewed Mr. Naiman was June 2 ?

Mr. Constandy. Tliat is correct.

Mr. Kennedy. That is why they selected the date of June 1.

The Chairman. Do you want to make any comment, Mr. Naiman ?

Mr. Naiman. Just one comment. Senator, and I want this on record.
I don't want the union to pay one red cent for me involving my deal.

The Chairman. Do you think now you still owe them something?

Mr. Naiman. If I do, they shall get it.

The Chairman. I don't doubt it.

Mr. Naiman. I want that on the record.

The Chairman. On the basis of the record now, do you think you
probably still owe them some money ?

Mr. Naiman. If it will show tliat. I still don't know.

The Chairman. You heard it. Do you think it shows it ?

Mr. Naiman. If it shows it, they shall get paid.

The Chairman. All right.

The committee will stand in recess until 2 o'clock.

(Members of the select committee present at time of recess : Senators
McClellan and Gold water.)

(Whereupon, at 12 :35 p.m. the select committee recessed, to recon-
vene at 2 p.m. the same day. )

AFTERNOON SESSION

The select committee reconvened at 2 p.m., Senator John L. Mc-
Clellan (chairman of the select committee) presiding.

The Chairman. The committee will come to order.

(Members of the select committee present at time of reconvening:
Senators McClellan and Church.)

The Chairman. Call the next witness.

Mr. Kennedy. ]Mr. Naiman.

TJie Chairman. Let the record show Mr. Naiman is recalled.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19069

TESTIMONY OF ALVIN NAIMAN— Resumed

Mr. Kennedy. Mr. Naiman, after the agreement was signed with
Mr. Burris, you turned over the documents to Mr. Dranow; is tliat
correct ? That is what we went through this morning.

Mr. Naiman. Yes.

Mr. Kennedy. And subsequently you received the option of William
Steiner, and you turned that over to Mr. Dranow also 'i

Mr. Naiman. That is correct, sir.

Mr. Kennedy. That is of some importance, Mr. Chairman, from a
later witness.

Did Mr. Dranow then proceed to support the company? Did he
invest some money in the company ? Did he pay some of the bills ?

Mr. Naiman. That is right, sir.

Mr. Kennedy. In fact, you made arrangements to fly one of the
planes from Arizona to Cuba, did you not ?

Mr. Naiman. That is right, sir.

Mr. KJENNEDY. And that was paid for by Mr. Dranow, was it not ?

Mr. Naiman. That is correct.

TESTIMONY OF JOHN P. CONSTANDY— Resumed

Mr. Kennedy. What does it show as expenditures by Dranow on
behalf of this company ?

Mr. Constandy. $27,387.24, known by us, and arrived at in this way :
The largest amount was $10,637 which was paid to the Hamilton Air-
craft Co. in order to send the plane to Cuba. That included the cost
of the gas, oil, radio equipment, and payment for the crew. The in-
surance for the same flight was $4,750. That was the insurance cov-
erage for that flight to Cuba from Tucson, Ariz.

In addition to that, Mr. Dranow paid to Akros Dynamics $3,500,
$500 to Mr. Alvin Naiman, $1,800 to Dominick Bartone, and $2,800
to the Southern Pacific Railway Co., and $1,000 to the Central Truck
Lines, the latter two items coming about as a result of moving the parts
from Alabama to California.

Mr. Kennedy. Alabama?

Mr. Constandy. Yes. The parts w^ere stored in Mobile, Ala. The
only other item that Mr. Burris testified to this morning was received
by him from Mr. Dranow was $750 as reimbursement on his travel
expenses in connection with Cleveland to Miami.

Mr. Kennedy. Mr. Naiman, you went to Cuba on four different
occasions ; is that right ?

Mr. Naiman. To the best of my knowledge.

Mr. Kennedy. Three of those were February 18 to February 21,
March 19 to March 22, March 30 to April 4. Mr. Triscaro went with
you on three of those four occasions, did he not ?

Mr. Naiman. To the best of my recollection, yes.

Mr. Kennedy. He went on the February 18 to February 21, March
19 to March 22, and March 30 to April 4. And Mr. Bartone went with
you one each of the occasions that you went ; is that right ?

Mr. Naiman. I think we met him there once.

Mr. Kennedy. But he was there ; he was in Cuba ?

Mr. Naiman. Yes, sir.



19070 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Kennedy. And Mr. Dranow was in Cuba from February 18 to
February 21, and on the second trip from March 19 to March 22.

So you went four times, Mr. Triscaro went with you on three of
those occasions ; Mr. Dranow went with you on two of those occasions,
Mr. Bartone made a total of some six trips and on four of those
occasions covered your trips to Cuba ; you met him or went with him
to Cuba.

Mr. Naiman. That is right.

Mr. Kennedy. This was all in connection with trying to sell the
planes to Cuba ?

Mr. Naiman. That is right.

Mr. IvENNEDY. At the time the plane came to Cuba, Mr. Bartone
had been trying to make these arrangements about selling the plane
to the Cuban Government. The plane arrived in Cuba on what day ?

The plane arrived in Cuba on March 21. Then you went over on
March 19 and were there through March 22 ; is that right ?

Mr. Naiman. That is probably right, sir, if the record shows it.

Mr. Kennedy. That was at the time Mr. Triscaro and Mr. Dranow
were with you ?

Mr. Naiman. You are probably right, sir.

Mr. Kennedy. With whom did you talk while you were in Cuba
about selling the plane ?

Mr. Naiman. The one I spoke to was Mr. Bartone.

Mr. Kennedy. With whom was he in contact ?

Mr. Naiman. That I can't answer.

Mr. Kennedy. While you were in Cuba on the March 29 trip, you
were still attempting to sell the plane, and the plane was in Cuba.
Did Mr. Triscaro speak to you about Mr. Dranow and what he wanted
to do about the company, whether he wanted to withdraw from the
company ?

Mr. Naiman. He mentioned that he was no longer interested in
the deal.

Mr. Kennedy. Did Mr. Triscaro tell you that ?

Mr. Naiman. Yes.

Mr. Kennedy. He told you that Mr, Dranow was no longer
interested ?

Mr. Naiman. To the best of my recollection, yes.

Mr. Kennedy. And what arrangements were made at this time ?

Mr. Naiman. Wliere Mr. Dranow was to turn back all the stock,
records, and whatever was involved.

Mr. Kennedy. At this juncture, there was a reasonably good chance
of selling the plane to the Cuban Government, was there not ?

Mr. Naiman. It seemed that way.

Mr. Kennedy. I mean, you were optimistic about them buying the
plane?

Mr. Naiman. I was, sir.

Mr. Kennedy. "V^Hiat would be the reason that while these negoti-
ations were taking place, and it looked like there was a good chance of
selling it, what was the reason that Mr. Dranow sent word that he was
going to withdraw ?

Mr. Naiman. JNIr. Kennedy, that is one question I can't answer.
I don't know.

Mr. Kennedy. Were the papers returned to you when you returned
to Miami ?



IMPROPER ACTIVITIES IN THE LABOR FIELD 19071

Mr. Naiman. Yes, sir.

Mr. Kennedy. Well, did

Mr. Naiman. Some of them were. The others were mailed.

Mr. Kennedy. Do you know what arrangements Mr. Dranow then
had with Mr. Bartone ?

Mr. Naiman. None that I know of. To my knowledge, he severed
himself with the deal.

Mr. Kennedy. Do you know of, in fact, he had any arrangements
with Mr. Bartone during this period or subsequently ?

Mr. Naiman. I cannot answer that. To my knowledge, no.

Mr. Kennedy. Now, on this trip that you went over to Cuba the
end of March, did you have a representative of a bank who was ac-



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