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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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companymg you ?

Mr. Naiman. Yes, sir.

Mr. Kennedy. That was a Mr. M. K. Lewis, Jr. ?

Mr. Naiman. That is correct, sir.

Mr. Kennedy. We have a copy of his report, Mr. Chairman, in
connection with that trip.

The Chairman. Mr. Lewis ?

Mr. Kennedy. Yes.

TESTIMONY OF WALTER R. MAY— Kesumed

The Chairman. Where did you obtain it?

Mr. May. From Mr. Lewis' files in the Pan American Bank in
Miami.

The Chairman. Was this procured under subpena ?

Mr. May. Yes, sir.

The Chairman. Identify it and I will make it an exhibit.

Mr. May. This is a report from Mr. Lewis to the credit files of the
bank.

The Chairman. That may be made exhibit No. 29.

(Report referred to was marked "Exliibit No. 29" for reference
and may be found in the files of the select committee.)

Mr. Kennedy. Mr. May, this report covers the trip to Cuba in
connection with Akros Dynamics ?

Mr. May. Yes, it does.

Mr. Kennedy. The representative of the bank went because of the
fact that this company was deeply in debt to the bank ?

Mr. May. Yes, sir.

Mr. Kennedy. They wanted to oversee the negotiations for the
sale of the airplane themselves ; is that right ?

Mr. May. That is correct.

Mr. Kennedy. Does Mr. Lewis make note of the fact that Mr.
Triscaro was one of those who accompanied the group ?

Mr. May. Yes, he does.

Mr. Kennedy. Would you read to the committee that part of Ids
report that deals with Mr. Triscaro ?

Mr. May. This is the report from M. K. Lewis, Jr., vice president
of the bank. In this report, he states :

On Monday, March 30, in company with Alvin Naiman of Akros Dynamics
Corp., and Louis Triscaro, who represents a group of investors who are backing
Naiman, I went to Havana to lend some assistance in the negotiations of the

36751— 69— pt. 54 19



19072 IMPROPER ACTIVITIES IN THE LABOR FIELD

C-74's. Upon arrival we were met by Dominick Bartone and proceeded to the
Air Force Base where I had occasion to examine the C-74 that had been flown
there.

The plane is in excellent condition and is guarded by troops of the Cuban
Government.

Mr. Kennedy. There is one other part,

Mr. May. Another part indicates the feeling that Mr. Lewis had
regarding the negotiations in progress. He says :

It appears that it is a bona fide transaction in process for the sale of from
4 to 10 of the C-74's to the Cuban Government, subject only to the signing of
an actual purchase order and to the working out of the details as to the final
pasrment.

Mr. Kennedy. So if this, in fact, went through, Mr. Dranow would
have made huge profits from the company, would he not, if you had
been able to sell the planes to the Cuban Government as had been
expected ?

Mr. Naiman. I should say so; yes.

Mr. Kennedy. Isn't it a fact that in view of the fact that the sale
was about to be made, that Mr. Dranow's interest was then going to
come through Mr. Bartone and Mr. Triscaro ? That rather than to
have the ownership of the company himself that this was now to be
handled not with his having the interest himself, but the interest was
going to be handled through Mr. Bartone and Mr. Triscaro ?

Mr. Naiman. Mr. Triscaro never entered into negotiations on this
deal, sir.

Mr. Ivennedy. Of course, the records would appear to indicate
otherwise, Mr. Naiman, as you understand and realize, the fact that
he made all of these trips on your behalf, the fact that he went to
Cuba on three different occasions to try to sell the plane, the fact
that the bank representative felt he was the one who was backing the
whole project.

It states here clearly,
Mr. Louis Triscaro, who represents a group of investors who are backing Naiman.

That is the representative of the bank ; that is his report.

Mr. Naiman. I don't know where he got that inference, though.

Mr. Kennedy. What you have is you have Mr. Triscaro in it from
the very beginning, starting on February 9, and going to New York,
then going to Florida, then coming back to Cleveland and on three
different occasions taking a trip to Cuba in connection with the sale
of the airplane.

Then you have the bank representative who said that from his
understanding it was Mr. Triscaro who was in back of all of this
operation.

Wasn't it a fact that as the documents were in Mr. Bartone's name,
or, rather, in his possession — not Mr. Bartone — in Mr. Dranow's name,
that it was felt that it would be better to turn those documents back
and have the operation handled through you and through Mr.
Triscaro?

Mr. Naiman. No, sir ; I wouldn't say that, sir.

Mr. Kennedy, Let me ask you a question: Did you speak to Mr.
Triscaro subsequently about obtaining a loan from the Teamsters
Union?



IMPROPER ACTIVITIES IN THE LABOR FIELD 19073

Mr. Naiman. I didn't speak to him about obtaining a loan from
the Teamstere Union. I spoke to him about obtaining a loan, the
possibility of getting one.

Mr, Kennedy. Was it discussed at that time that you might ob-
tain a loan from the Teamsters Union ?

Mr. Naiman. The possibility of it ; yes, sir.

Mr. Kennedy. Who first suggested obtaining a loan from the
Teamsters Union ?

Mr. Naiman. Sir?

Mr. Kennedy. Who first suggested obtaining a loan from the
Teamsters Union?

Mr. Naiman. ^Vlio first suggested it ?

Mr. Kennedy. Yes.

Mr. Naiman. Well, Mr. Triscaro told me that the Teamster Union
had a loaning agency, which I was not familiar with, and there was
a possibility maybe of trying to get some funds from them.

Mr. Kennedy. So what arrangements were made?

]\Ir. Naiman. I can't answer that.

]\Ir. Kennedy. Well, what arrangements did you make to obtain
the loan ?

Mr. Naiman. I don't remember that, Mr. Kennedy.

Mr. Kennedy. Did Mr. Triscaro suggest that you go to Chicago,
that he would make arrangements for you there, that you should go to
Chicago to try to obtain the loan ?

Mr. Naiman. Yes.

Mr. Kennedy. And isn't it correct that Mr. Bartone accompanied
you on the trip to Chicago to try to obtain the loan ?

Mr. Naiman. I had asked Mr. Bartone to accompany me on the
trip.

Mr. Kennedy. And did he accompany you ?

Mr. Naiman. Yes, he did, sir.

Mr. Kennedy. Did you visit there in Chicago with a representa-
tive of the pension and welfare fund ?

Mr. Naiman. I don't know whether he was a representative of the
pension and welfare fund.

Mr. Kennedy. "Wlio did you see in Chicago ? ^-

Mr. Naiman. A gentleman by the name of Mr. Downs.

Mr. Kennedy. Mr. James C. Downs ?

Mr. Naiman. That is right.

Mr. Kennedy. He is chairman of the board of the Keal Estate
Research Corp.

Mr. Naiman. That is right, sir.

Mr. Kennedy. And doesn't he have the position also of making
recommendations on loans for the pension and welfare fund?

Mr. Naiman. Subsequently I found that out.

Mr. Kennedy. Did you understand that when you went to see him ?

Mr. Naiman. Not necessarily, no; not at the beginning.

Mr. Kennedy. Did Mr. Downs, when you went to see him, expect
you ? Did he know you were coming ?

Mr. Naiman. To my knowledge, he expected us ; yes.

Mr. Kennedy. Did you see him twice the first time? Did you see
him once in the morning and then come back again in the afternoon?

Mr. Naiman. That is right, sir.



19074 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Kennedy. Did Mr. Triscaro, before you went up there, tell
you that he would contact Mr. Hoffa to get his help in obtaining a
loan?

Mr. Naiman. No, sir ; I was not told that.

Mr. Kennedy. Did you have any conversations with Mr. Triscaro
about the fact that he would make a contact with Mr. Hoffa?

Mr. Naiman. No, sir ; nothing like that.

Mr. Kennedy. Was Mr. Dranow's name mentioned at the first
meeting that you had with Mr. Downs?

Mr. Naiman. Not to my knowledge.

Mr. Kennedy. Well, did anybody else mention his name ?

Mr. Naiman. Not to my knowledge.

Mr. Kennedy. Well, you were there.

Mr. Naiman. Well, I could have stepped out, too. I mean, your
investigators told me, yes, but I don't remember it.

Mr. Kennedy. You don't remember whether his name was
mentioned ?

Mr. Naiman. No, sir ; I don't.

Mr. Kennedy. You went to see Mr. Downs on April 13; is that
right?

Mr. Naiman. I don't remember the date. I remember I was there.

Mr. Kennedy. Did you tell Mr. Downs that you had been in con-
tact with Mr. Triscaro ?

Mr. Naiman. Yes.

Mr. Kennedy. And didn't Mr. Bartone say that he had been in con-
tact with Mr. Dranow ?

Mr. Naiman. Not to my knowledge, sir.

Mr. Kennedy. You don't remember that being stated ?

Mr. Naiman. That I don't remember.

Mr. Kennedy. Wlien you left that meeting, did you expect to receive
the loan ?

Mr. Naiman. We just brought up the possibility of making the
loan, so I can't say readily that I expected to get a loan at the first
meeting.

Mr. Kennedy. Mr. Chairman, we expected to have Mr. Downs as
a witness today. He had made plans some months ago to go to
Europe. One of his sons is in the service over there and they could
only go for a 3-week period. So he made an affidavit for the
committee.

Ordinarily it wouldn't be sufficient to take an affidavit, as he would
have been an extremely important witness, but in view of the fact
and the hardship it would have imposed upon himself and upon his
family, we allowed him to go. He said when he returned he would
testify if the committee wanted to hear him. But we do have an
extensive affidavit from him in connection with this application, this
loan application.

The Chairman. Do you have the affidavit duly verified ?

Mr. Kennedy. We do.

The Chairman. The affidavit may be made exhibit No. 30.

(Affidavit referred to marked "Exhibit No. 30" for reference and
may be found in the files of the select committee.)

The Chairman. You may read excerpts from it if you desire.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19075

Mr. KJENNEDY. It states :

I, James C. Downs, Jr., make the following statement voluntarily to John P.
Constandy and Walter R. May who have certified themselves to me as assistant
counsels of the U.S. Senate Select Committee on Improper Activities in the
Labor or Management Field. This statement is being made by me with the
realization that it may be used in public hearings before the committee.

I serve as chairman of the board and am active in the affairs of the Real
Estate Research Corp., 73 West Monroe Street, Chicago, 111. On or about
March 1, 1959, the Real Estate Research Corp. was retained by the trustees
of the Central States, Southeast and Southwest Areas Pension Fund to perform
certain functions in connection with applications for loans from the pension fund.

In general terms, the research corporation's duties consist of receiving the
application, making a preliminary study, and submitting the information to the
screening committee of the fund. Thereafter, upon the approval of the screen-
ing committee, the research corporation makes a full study and appraisal of
the loan situation and submits the result, together with a recommendation, to
the trustees of the fund. The approval of and commitment for any and all loans
granted by the pension fund is solely vv^ithin the authority of the trustees of the
fund.

On Monday, April 13, 1959, two individuals with whom I was not acquainted
visited me at my Chicago office. They introduced themselves as Alvin Naiman
and Dominik Bartone ; said they had come in connection with a loan ; and asked
if I had heard from James Hoffa who, they said, was supposed to have notified
me by telephone that they were going to visit me. Not having been contacted by
Mr. Hoffa in relation to the matter, I requested that Mr. Naiman and Mr. Bar-
tone return later in the day, and they left my office.

Thereafter, on the same day, I telephoned Mr. Hoffa in Washington, D.O., and
told him of the visit by Mr. Naiman and Mr. Barton. Mr. Hoffa said he should
have called me earlier but had not gotten around to it ; that Naiman and Bar-
tone were interested in a loan ; and the Teamsters were interested in making
the loan if it appeared to me that it would be a good loan.

Later in the day Mr. Naiman and Mr. Bartone returned to my office and we
discussed the loan they desired. Mr. Naiman wished to obtain a loan of $300,000
from the pension fund to finance the sale of some airplanes which had been pur-
chased from the Government, and as security for the loan, Mr. Naiman was offer-
ing his interest in a company called Niagara Crushed Stone, Ltd., located in
Port Colborne, Ontario.

Mr. Bartone discussed the planes themselves and the potential sale of them
to Cuban buyers and others. Both Mr. Naiman and Mr. Bartone stressed their
urgent need for money to finance the project and led me to believe they expected
that the loan would be granted immediately.

I recall that Mr. Naiman said they had been in contact with a "Babe" Triscaro
in regard to the loan and had been led to believe that the loan would be ap-
proved. Mr. Bartone stated that in regard to the loan they had also been in
contact with Benjamin Dranow who, Mr. Bartone said, was a person who worked
with Mr. Hoffa. Mr. Bartone stated that they had arranged for the loan
through Benjamin Dranow who had assured them it would be granted.

On or about April 17, 1959, I visited the property of the Niagara Crushed
Stone Co. at Port Colborne and found a high level of activity. However, I
learned that the Toronto-Dominion Bank of Crowland, Ontario, had extended
credit to the company of $150,000, of which $148,000 had been drawn against.
To secure this loan, accounts receivable and the inventory of stone and rubble
had been pledged.

For this and other reasons which were set forth in my letter of April 24,
1959, to the screening committee of the fund, I concluded that there was not
sufficient security to warrant a loan to Mr. Naiman on the basis of his interest
in the company, and I so informed the screening committee on April 24.

Thereafter, on April 28, the material submitted by Mr. Naiman to my office
in connection with his loan application was returned to Mr. Naiman.

Sub.sequently, on or about May 1, I received a telephone call from Mr. Hoffa,
speaking from Washington, D.C. Mr. Hoffa said that Al Naiman was then in
Mr. Hoffa's office and they were discussing Mr. Naiman's loan which had been
rejected by the screening committee.

Mr. Hoffa asked me if there was any basis upon which a loan to Mr. Naiman
would be acceptable. I told Mr. Hoffa that I might recommend the granting
of a loan if Mr. Naiman met certain conditions, s,uch as —



19076 IMPROPER ACTIVITIES IN THE LABOR FIELD

(a) Agreeing to the use of $156,000 of the loan to pay a debt against the
stock of the company and forthwith posting that stock as collateral ;

(&) Agreeing to subordinate to the loan $500,000 owed him by the company;
and

(c) Agreeing that the balance of the loan would be paid to the Toronto-
Dominion Bank of Crowland, Ontario, for the purpose of retiring a loan to
the company.

Mr. Hoffa then asked me if it were necessary that the bank loan be paid off
and I replied in the affirmative. It was apparent to me from our telephone
conversations that Mr. Hoffa was anxious to have this loan granted.

I heard nothing more concerning the loan until May 7 when Mr. Naiman called
our oflSce to say he was under the impression that something further was going
to be done on his application ; that he was willing to subordinate moneys due
him from the company, and that he expected the loan to be approved.

Thereafter, I was surprised to learn from Francis J. Murtha, executive secre-
tary of the pension fund, that the trustees of the fund were being circulated by
wire for approval of a loan to Mr. Naiman in the amount of $300,000, subject
to our certification of the security of such a loan. On May 26, 1 directed a letter
to Mr. Hoffa, a copy of which letter is hereby incorporated by reference at this
point, setting forth the conditions upon which I would certify the security
of such a loan.

Here is a copy of the letter, Mr. Chairman. In the letter, he sets
forth the conditions that he stated to Mr, Hoffa on the telephone as
to how he would approve the loan. He had stated to Mr. Hoffa on the
telephone, according to the affidavit, that he would approve the loan
if certain conditions were met.

Thereafter, and this is stated, to his surprise the secretary of the
pension fund was circulating the trustees, asking for their approval
of the loan, subject to his approval or his stamp, and he then sent
out this letter so that there would be no misunderstanding that we was
approving the loan without these conditions.

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

The Chairman. This letter is already a part of the affidavit, and it
is a part of the exhibit.

You have heard the affidavit read of Mr. Downs, and he is the man
you went to see about the loan, and you have heard references there
and his statement as to what you represented to him about Mr. Hoffa
and about Mr. Dranow.

Are those statements in the affidavit correct?

Mr. Naiman. I don't remember Mr. Dranow's name being men-
tioned. As I said, probably he wasn't there at all times.

The Chairman. Is there anything in that affidavit that you want
to refute or deny?

Mr. Naiman. No, sir ; I don't think so.

Mr. Kennedy. The significant fact, or one of the significant facts,
is that it was Mr. Bartone who brought up Mr. Dranow's name, and it
would appear that Mr. Dranow was withdrawing his interest or was
changing his interest after the beginning of April of 1959 in the com-
pany, and it was then operating through Mr. Bartone, so that when the
trip was made by Mr. Naiman and Mr. Bartone to Chicago, in con-
nection with that loan, it was Mr. Bartone who brought up that name.

The Chairman. It was Bartone seeking the loan instead of Mr.
Dranow.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19077

Mr. Kennedy. And the arrangements had. been made through Mr.
Dranow, and as this affidavit states :

Mr. Bartone stated that in regard to the loan they had also been in contact
with Benjamin Dranow who, Mr. Bartone said, was a person who worked with
Mr. Hoffa.

The Chairman. How many times did you talk to Mr. Hoffa about
this loan?

Mr. Naiman. One time, sir.

The Chairivian. When was that ?

Mr. Naiman. It was in the paper.

Mr. Kennedy. It was after Mr. Downs had turned the loan down,
and you had further conversations with Mr. Triscaro ; is that correct ?
After your first visit ?

Mr. Naiman. I believe that is right.

Mr. Kennedy. And then did Mr. Triscaro arrange for you to see
Mr. Hotf a here in Washington, D.C. ?

Mr. Naiman. Yes, sir.

Mr. Kennedy. So you and Mr. Triscaro took a trip here to
Washington, D.C. ?

Mr. Naiman. That is right.

Mr. Kennedy. And you went and visited with Mr. Hoffa ?

Mr. Naiman. Yes, sir.

]Mr. Ivennedy. And would you relate to the committee what hap-
pened at that meeting?

Mr. Naiman. You just related it, sir.

Mr. Kennedy. Tell us what happened.

Mr. Naiman. You just told us that.

Mr. Kennedy. He is telling of the fact that Mr. Hoffa called him
about the loan, but who was present at the meeting? Did it take
place in Mr. Hoffa's office ?

Mr. Naiman. Yes, sir.

Mr. Kennedy. Who was present at the meeting?

Mr. Naiman. Mr. Hoffa was there, and I was there, and Mr.
Triscaro was there, and another gentleman — I don't know his name.

Mr, Kennedy. The other gentleman had a mustache ?

Mr. Naiman. Yes, sir.

Mr. Kennedy. Is that Mr. Gene San Soucie ?

Mr. Naiman. I wouldn't know.

Mr. Kennedy. What did you discuss at that meeting ?

Mr. Naiman. The possibilities of making a loan.

Mr. Kennedy. ^Vhat did Mr. Hoffa say to you at that time?

Mr. Naiman. If I could meet all of the conditions that were
required by Mr. Downs, possibly I could get a loan.

Mr. Kennedy. Wliat did he say about the airplanes?

Mr. Naiman. He did not discuss the airplanes.

Mr. Kennedy. Didn't you discuss the airplanes at all ?

Mr. Naiman. No, sir.

Mr. Kennedy. He didn't say anything about the fact of, what kind
of a deal had you gotten yourself into in connection with the air-
planes ?

Mr. Naiman. There was absolutely no mention of the planes at all.

Mr. Kennedy. I don't want to go through the same thing we went
through this morning, Mr. Naiman, but isn't it correct that you had
some discussion about the airplanes while you were there ?



19078 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Naiman. To my knowledge, I would say "No, sir."

Mr. Kennedy. Just think again.

Mr. Naiman. I just don't remember.

Mr. Kennedy. Just think again, now, Mr. Naiman, and isn't it cor-
rect that you discussed the airplanes to some extent while you were
there ? Now, you are under oath.

Mr. Naiman. I honestly don't remember, and I don't think so.

Mr. Kennedy. Didn't he say to you and didn't you tell us that he
stated that you had gotten yourself in a deal down there with those
airplanes ?

Mr. Naiman. It was never discussed in front of me, sir; I can't
remember.

Mr. Kennedy. Would you think again, Mr. Naiman, and I know
you don't want to get yourself into difficulty, but you shouldn't get
yourself into difficulty here also.

Would you think again ?

Mr. Naiman. I honestly tell you that I cannot remember any dis-
cussion about the planes that day, sir.

Mr. Kennedy. Now tell me this : Did you tell our investigators that
you had discussed the planes with Mr. Hoffa at that time ?

Mr. Naiman. I never made that statement, sir. I never made that
statement.

Mr. Kennedy. Could I ask Mr. May, Mr. Chairman ?

The Chairman. All right, Mr. May, you have heard the witness
testify he had made no such statement about having discussed the
planes with Mr. Hoffa on the occasion of his visit here to see him in
his office.

Have you discussed this matter with the witness, Mr. May ?

Mr. May. Yes, sir, I have.

The Chairivian. Wliat was the information that he gave you regard-
ing his conversation there with respect to planes, airplanes ?

Mr. May. Mr. Naiman met with us in New York a couple of weeks
ago, and told us about his visit to Washington with Mr. Triscaro, and
he met with Mr. Hoffa, and at that time Mr. Hoffa told Mr. Naiman
that he had involved himself in a most miserable airplane deal, and
at that point Mr. Naiman used other language, but the gist of it was
that it was not a good deal.

Mr. Naiman told that to Mr. Constandy and to myself.

The Chairman. Do you recall having made such comment?

Mr. Naiman. I don't remember ; really I don't.

The Chairman. Do you deny that you made the statement ?

Mr. Naiman. I don't remember making a statement of that kind.

The Chairman. You say you don't remember ?

Mr. Naiman. Do you want me to tell the truth ? I am telling you
the truth, and 1 just don't remember making a statement like that.

The Chairman. We are interested, I think, in getting just the truth.

Mr. Naiman. That is right, sir.

The Chairman. So you don't remember, and therefore you can't say
that you did make it or that you didn't ; is that the way you want to
leave the record ?

Mr. Naiman. If you please, sir.

The Chairjman. You want to leave it that way ?

Mr. Naiman. If you please, sir.



IMPROPER ACTIVITIES IN THE LABOR FIELD 19079

I just can't remember making a statement like that, and I am very
sincere in saying so.

Mr. Kennedy. What did Mr. Hoffa think that the loan was for,
then?

Mr. Naiman. Sir?

Mr. Kennedy. What did you explain that the loan was for ?

Mr. Naiman. The loan was made exactly as was purported on the
affidavit of Mr. Downs, and that was it.

The Chairman. It was not unusual at all when someone seeks to
borrow a large sum of money, that the lender usually inquires "Why
do you want so much money ? "

Did that not occur ?

Mr. Naiman. What is that?

The Chairman. I say it is not an unusual thing when one is making
application for a loan, or seeking to borrow a considerable amount
of money, that the lender usually asks, "What do you want that
money for?"

Mr. Naiman. That is right, sir.

The Chairman. Wliat is that ?

Mr. Naiman. That is right.

The Chairman. That is right?

Mr. Naiman. Yes.

The Chairman. Were you asked what you wanted the money for in
this instance ?

Mr. Naiman. The money was

The Chairman. I know what it was, but were you asked what it
was wanted for ?

Mr. Naiman. That is right.

The Chairman. By whom?

Mr. Naiman. By Mr. Hoffa.

The Chairman. Surely ; and did you tell him ?

Mr. Naiman. Yes; I did.

The Chair]vian. What did you tell him?

Mr. Naiman. I told him that I wanted the money for the stone
quarry, both to take care of the stock and also to take care of the bank.



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