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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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years ago ; and of Bill Presser for about the past 6 years. I do know them
well enough to talk with them when we meet. Except for casual meetings,
I have met with Babe Triscaro and Bill Presser on only one occasion : Some-
time in early 1956 an appointment was made to speak at a meeting and when
there, spoke — not at the Teamsters Hall — with both Bill Presser and Babe Tris-
caro, among others, to seek their support and the support of the Teamster or-
ganization for William O'Neill, who w^as then a candidate for the governorship
of Ohio.

My solicitation of their support was due to my long, active role in poli-
tics. * * *

Mr. Kennedy. I believe he states in there that he had informed
the judge of his financial arrangements with the Teamsters.

Mr. Salinger. He does state that.

Mr. Kennedy. That is all.

The Chairman. Call the next witness.

Mr. Kennedy. Mr. Joseph DeGrandis.

Mr. Allder. He will be here in a couple of minutes.

Mr. Kennedy. Mr. Wainwright.

Mr. Allder. Here is Mr. DeGrandis, Mr. Kennedy.

The Chairman. Be sworn.

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. DeGrandis. I do.

TESTIMONY OF JOSEPH DeGRANDIS, ACCOMPANIED BY COUNSEL,
H. CLIFFORD ALLDER

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

Mr. DeGrandis. Joseph DeGrandis, 3890 Victory Boulevard, Staten
Island, N.Y.

The Chairman. What is your business or occupation, Mr. De-
Grandis ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. You have counsel present ?

Mr. DeGrandis. I do.

The Chairman. Let the record show the same counsel appears for
this witness as for the preceding witnesses.

Mr. DeGrandis, is there anything at all you are willing to do to
cooperate with the committee, to help it carry out the mission that
the Congress gave to it, to perform the duties that are incumbent upon



IMPROPER ACTIVITIES IN THE LABOR FIELD 18821

it under the assignment it has, anything at all you are willing to do to
cooperate ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. You think that is the act of a good citizen, do you ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. Proceed, Mr. Kennedy.

Mr. Kennedy. Mr. Chairman, Mr. DeGrandis has appeared before
the committee previously. He is president of Automatic Coin & Ven-
ing Machine Union, Local 266 of the International Brotherhood of
Teamsters in New York City.

His criminal record, as it has been put into the record before, includes
a conviction in 1939 for criminally receiving stolen property. He
received a 2i/2- to 5-year sentence in Sing Sing. He was paroled and
returned to Sing Sing as a parole violator, following his arrest for
possession of an unregistered still.

Following his release from Sing Sing he was sentenced to the U.S.
Federal Penitentiary in Atlanta, a cause arising out of the still.

He received a charter for local 13 of the Retail Clerks Interna-
tional Association, and that charter was lifted on March 5, 1957, by
the international union because of charges of racketeering against Mr.
DeGrandis.

The Chairman. When that union found a condition that prevailed
in connection with this man's union associations and relationships,
they took action and immediately lifted the charter ?

Mr. Kennedy. They felt it was run as a racket.

The Chairman. What happened since ?

Mr. Kennedy. They went in to obtain all the books and records of
Mr. DeGrandis' local, went in to take possession of the office. They
didn't find checks, membership records, or anything; they found in
the office only two items : a billy and a gun.

Shortly after this Mr. DeGrandis became a Teamster Union official
in New York City.

The Chairman. Did you seek out a position with the Teamster
Union, or after they learned about your situation and the equipment
you had on hand, did they seek you out to become a member or officer
of their union ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

Mr. Kennedy. Mr. Chairman, he became head of the local and re-
ceived a charter from the Teamsters, and at the time of our hearing
the local had fewer than 100 members. Its operation, once again,
was financed through label fees. The dues were 65 cents per machine.

Mr. DeGrandis received a salary of $250 a week, and he purchased
two automobiles which had been authorized by the minutes. It is in-
teresting to note as we put into the record, that the minutes authoriz-
ing his possession or purchase of the two automobiles were written
up on December 5, 1957. From an examination of the records in
which the minutes appeared, we found that the book that contained
the minutes had not been purchased until May 15, 1958, although the
minutes were written up in December 1957.

The Chairman. Do you wish to give any explanation of that un-
usual circumstance?



18822 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. Was it ever voted by the members of the union for
you to have those two automobiles at union expense ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. Are the minutes that reflect that action absolutely
false?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. Do you believe if they were truthful, if the record
were truthful, that it would tend to incriminate you ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. Proceed.

Mr. Kennedy. That is all.

Senator Kennedy. Mr. DeGrandis, if you have 100 members and
they are paying an average of $5 a month dues, though I don't know
what it is — you don't want to say what it is, do you ?

Mr. DeGrandis. I respectfully

Senator Kennedy. All right.
^ That is $500 a month. Your salary is $1,000 a month. In addi-
tion, you have these two cars, plus whatever else you may get, what-
ever other income you may have. It is quite obvious, then, that you
are receiving the balance of your income from employers, and you
are receiving it from these lal>els, or whatever you might call them,
stickers, that you place on the machines. You get so much per month.
What is it, 65 cents per month ?

Mr. Kennedy. 65 cents per month.

Senator Kennedy. How many machines do you have ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

Senator Kennedy. Isn't it a fact that you have a contract with
Eugene Jacobs, head of the United Coin Machine Operators of New
York, who came before this committee and took the fifth amendment ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

Senator Kennedy. Isn't it just a racket which you have with less
than 100 members ? You give protection to Mr."^ Jacobs, who is a
racketeer also, and any time anybody tries to bring in any machines
which compete with those under Mr. Jacobs' management, then you
threaten to put a picket line around the shop, and in that way you
protect Mr. Jacobs and the employers ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

Senator Kennedy. That isn't a union ; it is just a racket by you and
these employers with whom you are associated. If that is an inac-
curate statement in any way, I will be glad to retract it.

Mr, DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

Senator Kennedy. I would like to see if we could get an opinion
from the National Labor Relations Board and the Department of
Justice whether these payoffs in the form of stickers per machine per



IMPROPER ACTIVITIES IN THE LABOR FIELD 18823

month is against the law, if it is not a form of extortion or an employer
payoff.

The Chairman. They certainly had an opportunity to give it con-
sideration by this time. This record has been public knowledge of
what has been going on. I hope they will give us an opinion about it.
We will seek it.

Mr. Kennedy. I will put out again, Mr. Chairman, that this gentle-
man has received two serious criminal convictions, he has been arrested
a number of times, he is under indictment at the present time. He
was expelled from another union because of racketeering. He now
holds this union position.

All of this information that I put into the record before has been
disclosed, and which I put back into the record today, and he is still
an officer in the union.

The Chairman. Is he still an officer of the union ?

Mr. Kennedy. That is what we understand.

The Chairman. Still operating as an official of a union, a repre-
sentative of a union ?

Mr. Kennedy. That is correct.

The Chairman. And this racketeering — if it is racketeering — that
you just described, continues?

Mr. Kennedy. That is right.

The Chairman. Are there any further questions ?

Is there anj^thing in the world that you want to say about this to
kind of clarify this, if there is any confusion in your mind about it ?

Mr. DeGrandis. I respectfully decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. I assume it is clear.

All right. Stand aside.

Call the next witness.

Mr, I^nnedy, Mr, Sam Goldstein.

The Chairman. Be sworn.

You do 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 tnith, so help you God ?

Mr. Goldstein. I do.

TESTIMONY OP SAM GOLDSTEIIT, ACCOMPANIED BY COUNSEL,
MICHAEL P. DIRENZO

The Chairman. All right, Mr. Goldstein, state your name, your
place of residence, and your business or occupation.

Mr. Goldstein. Sam Goldstein, 157 Mary Lane, Jericho, Long
Island, N.Y.

Mr. Direnzo. Will the record indicate that he is represented by
Michael P. Direnzo, 253 Broadway, New York City.

The Chairman. Did you say you were employed ?

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer on the ground that it may tend to incriminate me.

The Chairman. In other words, if you have any employment, occu-
pation, or business, you honestly believe that if you admitted it and
told what it was, it might incriminate you ; is that correct ?



18824 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer the question on the ground that it may tend to incriminate me.

The Chairman. I will ask you again : Do you honestly believe that
if you answered the question truthfully — that a truthful answer might
tend to incriminate you as to what your business or occupation is ?

Mr. Goldstein. Senator McClellan, sir, I rest on my previous answer.

The Chairman. I ask you this question again : Do you honestly be-
lieve that if you gave a truthful answer to the question, "What is your
business or occupation?" — that a truthful answer to that question
might tend to incriminate you ?

(The witness conferred with his counsel.)

Mr. DiRENzo. He desires to confer with coimsel.

The Chairman. Confer.

(The witness conferred with his counsel.)

Mr. Goldstein. Senator McClellan, sir, I rest on my prior answer.

The Chairman. The Chair, with the approval of the committee,
orders and directs you to answer the question. I now propound it
agam:

Do you honestly believe that a truthful answer to the question,
"What is your business or occupation?" might tend to incriminate
you?

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer the question on the ground that the answer might tend to
incriminate me.

The Chairman. The Chair, with the approval of the committee,
orders and directs you to answer the question, and that order will con-
tinue through the time that you remain on the witness stand.

You have counsel with you, but I am interested in knowing, and
I think we ought to find out, whether witnesses can come before this
investigating committee, or any other tribunal that has the authority
to require testimony, and state that they decline to answer a question
because it might tend to incriminate them without stating, and re-
fusing to state, whether they honestly believe that if they gave a
truthful answer to the question, that a truthful answer might tend
to incriminate them.

I don't believe witnesses have the right, under the fifth amendment
to the Constitution, to capriciously invoke the fifth amendment. I
think they have to be sincere in it. When they refuse to make a
statement under oath that they honestl}^ believe that such a truthful
answer might tend to incriminate them, I believe that they are sub-
ject to disciplinary action for failing to answer, and I think it is a
duty under the law to answer.

You have counsel. You can consult with him about it, but the
order remains until you answer the question.

Mr. Goldstein. Senator McClellan, sir, I know you are urging me
in good faith, but I honestly and truthfully believe that the answer
may tend to incriminate me.

The Chairman. That is all I have asked you for 5 minutes — if you
honestly believed it.

Mr. Goldstein. I honestly do, sir.

The Chairman. Let us proceed.

Mr. Kennedy. Mr. Goldstein, did you give your present address?

Mr. Goldstein. I did, counsel.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18825

Mr. Kennedy. Wliat was that?

Mr. Goldstein. 157 — my present address?

Mr. Kennedy. Yes.

Mr. Goldstein. Well, now, that is a question. Just 1 second, sir.
I would like to retract my prior answer.

(The witness conferred with his counsel.)

Mr. Goldstein. My legal address is 157 Mary Lane, Jericho, Lons:
Island, N.Y.

Mr. Kennedy. Wliere are you now living ?

Mr. Goldstein. Under the auspices of the city of New York ?

Mr. Kennedy. Rikers Island?

Mr. Goldstein. That is right. Counsel Kennedy.

Mr. Kennedy. You are in prison at the present time?

Mr. Goldstein. That is right, sir.

Mr. Kennedy. You still have a job, however?

Mr. Goldstein. I respectfully decline to answer on the grounds that
it may tend to incriminate me.

The Chairman. What is he in prison for ?

Mr. Kennedy. Mr. Chairman, he has an extensive criminal record.

The Chairman. Wliat is it at present ?

Mr. Ivennedy. Extortion.

The Chairman. You are in prison now on a conviction of extor-
tion ; is that correct ?

Mr. Direnzo. For the record, if the Senator pleases, he is not in
prison for an extortion at the present time.

The Chairman. Well, you are there for something. Do you want
to tell us what it is? I don't see how it can particularly incriminate
you.

Mr. Goldstein. Senator McClellan, I respectfully decline to an-
swer

The Chairman. All right. Decline.

What does the record show ?

Mr. Kennedy. Sam Goldstein has an extensive criminal record,
starting back in 1946. He was convicted of operating a gambling
establishment in Miami, Fla., when he received a fine.

He is presently, according to our information, president of local
239 of the International Brotherhood of Teamsters. He is, as he
stated, in jail at the present time. He was indicted in 1956, along
with Johnny Dioguardi and Max Chester. They were indicted for
asking for $30,000 and receiving $10,000 for bribery and extortion.
All the defendants were convicted on July 24, 1957. On September 5,
1957, all the defendants were sentenced to 1 year in the penitentiary
and $500 fines on two counts, to run consecutively, a total of 2 years,
and $1,000 fine. They all filed appeals and were out on bail.

Subsequently, on March 11, 1959, Sam Goldstein and Johnny Dio-
guardi were brought back and resentenced on this indictment. Gold-
stein received 1 year in the New York City Penitentiar;^ and fined
$500, four counts, to run concurrently; Dioguardi was given a sus-
pended sentence on the four counts. _

Therefore, he is in jail on that indictment.

There was a second indictment in 1957. He was indicted by him-
self at that time on March 5, 1957, for conspiracy, one count; at-
tempted extortion, one count; coercion, one count; and extortion,
four counts.



18826 nviPROPER activities in the labor field

On March 27, 1958, before Judge Mullen, in the general sessions
court, he pled guilty to attempted extortion to cover all the counts,
and he was sentenced on February 18, 1959, to 3 to 5 years in the State
prison ; the execution of the sentence was suspended and he was put
on probation. In the meantime, he went to jail on the first conviction.

The Chairman. It all involved extortion or some form of cor-
ruption, thievery ; is that right ?

Mr. Kennedy. Yes. Therefore, he has been in jail for some 2 or 3
months. He still holds his union position, although on page 16014
of the record, Mr. Hoffa gave us the names of those individuals who
had been removed from positions within the Teamsters Union because
of convictions of crimes. Mr. Sam Goldstein was one of those listed
by Mr. Hoffa as no longer being a union official.

The Chairman. What date was that testimony ?

Mr. Kennedy. September 1958.

The Chairman. In other words, September of last year. Mr. Hoffa
was testifying that Mr. Goldstein was no longer an officer of the union,
that he had been expelled ; is that correct ?

Mr. Kennedy. He said he was expelled at that time.

The Chairman. He wasn't supposed to be a member at that time,
according to Mr. Hoffa ?

Mr. Kennedy. That is right. TJiis is the local where the secretary-
treasurer was Anthony "Tony Ducks" Corallo. This is the local that
was involved in the paper locals and which played an important role
in our hearings during 1957.

I would like to call Mr. Paul Tiemey, from the staff of the com-
mittee, to put into the records tlie information to show that Mr. Sam
Goldstein is an officer of the local and still receiving his salary while in
the penitentiary.

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. Tierney. I do.

TESTIMONY OF PAUL J. TIEEKEY

The Chairman. Your name is Paul Tierney, a member of the staff
of this committee, and have been serving as such since the committee
was established ; is that correct?

Mr. Tierney. That is correct.

The Chairman. In the course of your duties, have you investigated
this matter with reference to Mr. Goldstein as to his present status with
the union and his salaries or moneys he is receiving from the union at
the present time and in the recent past ?

Mr. Tierney. I have, Mr. Chairman, and also a staff member under
my supervision.

TESTIMONY OF SAM GOLDSTEIN, ACCOMPANIED BY COUNSEL,
MICHAEL P. DIRENZO— Resumed

The Chairman. Will you state, Mr. Goldstein, for the information
of the committee, whether you are now a member of the Teamsters
Union or any other union ?



IMPROPER ACTIVITIES IN THE LABOR FIELD 18827

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer on the ground that it may tend to incriminate me.

The Chairman. Will you state for the record whether you are now
an officer in a Teamsters Union, particularly local 239, or any other
local or labor organization, if you are an officer in any of them at the
present time ?

ISIr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer the question on the giound that it may tend to incriminate me.

The Chairman. Will you state for the record whether you are now
drawing compensation from local 239, while you are serving your
prison term, in the form of salary, expenses, gratuities, or for any other
purpose during the time you are serving your prison sentence?

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer the question on the ground that it may tend to incriminate me.

The Chairman. Are you drawing such sums or moneys, or compen-
sation, from any union, from any labor organization while you are so
serving your sentence ?

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer the question on the ground that it may tend to incriminate me.

The Chairman. The Chair is going to direct your attention to the
testimony of Mr. Tierney, a staff member.

I wish you would follow it closely. If there are any errors, any
discrepancies, any inaccuracies in what he says, I want to give you
the opportunity to correct it.

Proceed.

Mr. Kennedy. I want to point out, Mr. Chairman, that Mr. Gold-
stein appeared before the committee in 1957, and the role that he
played, the fact that he took $20,000 from the union, for instance,
and paid no interest on a supposed loan, that he was intricately in-
volved in the setting up of the paper locals, that he was involved with
many gangsters and hoodlums, that he himself had a bad criminal
record — this was all brought to the attention of the now international
president of the Teamsters.

The Chairman. Give us the record, what you found.

TESTIMONY OF PAUL J. TIEENEY— Resumed

Mr. Tierney. In examining the records, we examined particularly,
Mr. Chairman, employment records of local 239 of the Teamsters.
These show that Sam Goldstein is still employed, and as president,
as I will later explain, of local 239, and received a salary. The last
we had was for the week ending June 19, 1959.

The Chairman. June 19, 1959 ?

Mr. Tierney. That was the last one.

The Chairman. In other words, your records show that his salary
was paid up until that time ?

Mr. Tierney. In other words, it was currently paid up as of the
time we made the examination.

The Chairman. You don't know whether it has been paid since,
but you have concluded your examination as of about that time and
found that he was currently paid up about a week ago ?

Mr. Tierney. That is correct.

Mr. Kennedy. How much does he receive from the union ?



18828 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. TiERNEY. He receives a salary of $375 a week, plus $25 a week
in expenses, for a total of $400 a week, or $20,800 a year.

The Chairman. He is receiving that salary from the local while
he is serving a prison sentence for extortion or some comparable
crime ?

Mr. TiERNET. That is correct.

The Chairman. That is a local that is a miit of the International
Teamsters ?

Mr. TiERNEY. That is right, affiliated with the International Broth-
erhood of Teamsters.

Mr. Kennedy. How many members does that local have ?

Mr. TiERNEY. I am not sure.

Mr. Kennedy. We will have some more testimony on it this aft-
ernoon, which we will put in.

Isn't it correct that he also has an automobile ?

Mr. TiERNEY. I am not sure of that right now.

We didn't get into that.

Mr. Kennedy. We will get into that.

You can also show that he is still the president ?

Mr. TiERNEY. President of local 239.

Mr. Kennedy. That he is president of the local.

Mr. TiERNEY. That is right.

We have a letter from Mac Sherman, recording secretary of local
239, dated March 3, 1959, to the recording secretary of joint council
16, Mr. Edward Corrigan, which lists duly elected officers of local
239 Avho are eligible to vote in joint council elections.

Sam Goldstein is listed as president in that letter.

The Chairman. What is the date of that letter ?

Mr. TiERNEY. March 3, 1959.

The Chairman. Was he in prison at that time ?

Mr. TiERNEY. He was sentenced just shortly after that.

The Chairman. Are they still carrying him? Do you have any-
thing to show that they are still carry hig him as president?

Mr. TiERNEY. The records do not specifically show that. We can't
get people to answer questions. That is our problem, Mr. Chairman.

The Chairman. Whether he is president or is not president, he is
getting $20,000 a year of of the union ?

Mr. TiERNEY. That is right. His salary as president was $400 a
week. As of March 3, 1959, he was getting $400 a week as president,
and the same salary continues up to the present time.

Mr. Kennedy. Don't some minutes indicate that they intended to
keep him on as president ?

Mr. TiERNEY. We have the minutes.

The Chairman. That letter may be made exhibit No. 4.
(Document referred to was marked "Exhibit No. 4" for reference



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 5 of 38)