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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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and will be found in the appendix on p. 19121.)

Mr. TiERNEY. I have the executive board minutes of local 239 of
September 10, 1957. This was after the trial of Sam Goldstein in
connection with the criminal charges, and prior to appeal.

With respect to Mr. Goldstein remaining as president, I will read
excerpts from tlie executive board minutes.

Brother Morrell took the floor to make a motion that it was the opinion and
desire of the executive board of this local that Brother Goldstein be continued
in his absence as tlie legal president of this local union and to continue to draw



IMPROPER ACTIVITIES IN THE LABOR FIELD 18829

compensation as such throughout the period of his involvement with his legal
problems and until such time as the executive board deemed otherwise.

After discussion, Brother Keenan seconded this motion and a motion was then
adopted unanimously.

The Chairman. That clearly indicates at that time, then, they in-
tended while he served his sentence, for him to continue to serve as
president and to get his pay ?

Mr. TiERNEY. That is correct, Mr. Chairman.

The Chairman. And the records corroborate that by the payments
having been made and were current up to June 19, about a week ago ?

Mr. TiERNEY. That is correct, Mr. Chairman.

Mr. Kennedy. Who paid Mr. Goldstein's legal bills in connection
with these matters ?

Mr. TiERNEY. We examined the legal bills, and on the basis

Mr. Kennedy. What were the legal bills prior to 1957 ?

Mr. TiERNEY. The legal bills prior to 1957, they had the firm of
Katz & Wolchok on a retainer basis and they averaged around $1,700
a year.

Mr. Kennedy. What was the legal bill for last year or the year
before ?

Mr. TiERNEY. The legal bills from 1956 to the present time in 1959,
excluding the Katz-Wolchok, was some $70,000, j)aid by the local
union.

Mr. Kennedy. This included legal bills in connection with Mr.
Goldstein?

Mr. TiERNEY. That is right. We can determine that at least some
$35,000 of his legal bills were directly in connection with the criminal
prosecutions of Mr. Goldstein. We haven't been able to determine
exactly how much of the remainder or the balance of the $35,000, but
it is a good portion of it, I am certain.

The Chairman. In other words, the dues money, the assessments
against members, if they are legitimate members of this union, have
been used to defend or for the defense, the legal defense, of Mr. Gold-
stein, the president of the union ?

Mr. TiERNEY. That is correct, Mr. Chairman.

At this same executive board meeting from which I read the minutes
previously, they herein authorize- the payment of these legal bills.

The Chairman. The minutes of that meeting may be made exhibit
No. 4-A.

(Minutes referred to were marked "Exhibit No. 4-A" for reference,
and may be found in the files of the select conmiittee. )

Senator Kennedy. Was that indictment for attempted extortion
from employers ?

Mr. TiERNEY. From employers, yes, in connection with his duties
as a labor union leader.

Senator Kennedy. Wliat was his plea ?

Mr. TiERNEY. Subsequently he entered a j)lea of guilty to the at-
tempted extortion charge.

Senator Kennedy. He was trying to extort money from an em-
ployer for keeping labor peace ?

Mr. TiERNEY. He was attempting it, yes. That is exactly it; yes,
sir.

Senator Kennedy. How many attorneys did he have on his payroll
for that amount of money ?



18830 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. TiERNEY, We have a list of some six attorneys, Senator.

Senator Kennedy. For this one case ?

Mr. Tierney. Well, we are not sure of all of them. But the major-
ity of them were in relation to this case.

Senator Kennedy. How long was his litigation in this one case ?

Mr. Tierney. He was initially indicted on the first case in 1956, and
it continued off and on up until his final sentence in March 1959, and
in the interim he was indicated on another charge, another extortion.

Senator Kennedy. Thank you.

Mr. Kennedy. Also, some of those legal bills were for Tony Ducks
Corallo ; is that right ?

Mr. Tierney. Yes.

Mr. Kennedy. Do you know anything specifically as far as Tony
Ducks Corallo?

Mr. Tierney. When Tony Ducks Corallo and Sam Goldstein ap-
peared before the committee in 1957, the attorney for him was one
Joseph M. McDonough, of Boston, Mass. The records show a fee of
$10,000 paid to him.

Mr. Kennedy. Paid to him for the appearances ?

Mr. Tierney. For their appearances before this committee.

Mr. Kennedy. $10,000 ?

Mr. Tierney. $10,000.

Mr. Kennedy. This was in connection with another union, orig-
inally, where he was trying to collect $30,000, and ultimately received
$20,000. He had an arrangement with Johnny Dioguardi when the
employer was trying to avoid unionization by another union ?

Mr. Tierney. That is right.

Mr. Kennedy. And Goldstein and Max Chester we had before the
committee, who were threatening the employer's children, they were
going to enable this employer to avoid signing up with this other
union, the Electrical Workers ; is that right ?

Mr. Tierney. That is right.

Mr. Kennedy. So it was a sell-out of the employees ?

Mr. Tierney. That is right.

The Chairman. Do you want to make any comments, Mr. Gold-
stein? Is there anything stated here that is inaccurate, false, or
untrue that you want to correct ?

Mr. DiRENzo. Except this. Senator

The Chairman. Let the witness answer.

Mr. DiRENzo. I think in the interest of justice we should correct
one facet of this. There was a statement made by Mr. Kennedy about
threats to children.

Mr. Kennedy. I said by Max Chester. I said as far as Max Ches-
ter was concerned, we had the tape recording in connection with his
threat to the employer's children, and he was involved in this case in
connection with Johnny Dioguardi.

The Chairman. Mr. Tierney, have you a record of the employment
and earnings, have you, of Mr. Goldstein, taken from the union rec-
ords?

Mr. Tierney. That is correct.

The Chairman. That may be made exhibit No. 5.

(Document referred to was marked "Exhibit No. 5" for reference
and may be found in the files of the select committee.)



IMPROPER ACTIVITIES IN THE LABOR FIELD 18831

The Chaikman. I assume, Mr. Goldstein, you wish to make no com-
ment regarding the testimony you have just heard ?

Mr. Goldstein. Senator McClellan, sir, I respectfully decline to
answer.

The Chairman. I will have to accept that declining as a negative
answer, that you don't care to make any comment about it.

Mr. Goldstein. One second.

(The witness conferred with his counsel.)

The Chairman. The Chair will announce we cannot conclude with
this witness before noon. I wish to recess now. We will return at
2:30.

The committee will resume at 2 :30. This witness will have to come
back.

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

(Whereupon, at 12':35 p.m. the select committee recessed, to recon-
vene at 2 :30 p.m. the same day.)

AFTERNOON SESSION

(The selection committee reconvened at 2:30 p.m., Senator John L.
McClellan (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 Kennedy. )

The Chairman. Mr. Goldstein, will you resume the witness stand,
please ?

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

The Chairman. Mr. Kennedy, you may proceed.

Mr. Kennedt. Mr. Chairman, in connection with the two matters of
Mr. Goldstein, on both of these cases Mr. Goldstein was convicted.
As I understand it, one of them is extortion. The official title is ex-
tortion. Is that correct ?

Mr. Direnzo. Attempted extortion.

Mr. Kennedy. And the other is a bribery of a union official ?

Mr. Direnzo. That is correct.

Mr. Kennedy. Could we straighten it out in the record ? He is now
serving a year in prison ; is that correct ?

Mr. Direnzo. That is correct.

Mr. Kennedy. In connection with the bribery of the union official?

Mr. Direnzo. That is correct.

Mr. Kennedy. And he has received a suspended sentence on the
other?

Mr. Direnzo. That was a case that was tried for 8 weeks, and the
jury was out for 3 days. On three occasions the jury came in and said
they could not agree on a verdict.

Mr. Kennedy. Did they agree on the third day ?

Mr. Direnzo. On the third day they did.

Mr. Kennedy. He was convicted of attempted extortion?

Mr. Direnzo. He took the plea after the conviction.

36751— 59— pt. 54 4



18832 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Kennedy. He pled guilty to that ?

Mr. DiRENzo. That is correct.

Mr. Kennedy. And he is on suspended sentence for that ?

Mr. DiRENzo. That is correct.

Senator Kennedy. Are you representing the union or this person,
personally ?

Mr. DiRENzo. I think I can say I honestly represent both.

Senator Kennedy. Have you been counsel for the union ?

Mr. DiRENzo. Not directly that way. But I think the record will
clearly indicate in the summation which took approximately 3 hours,
it would indicate the advantages that would come to the union as a
result of the activities of Sam Goldstein.

Senator Kennedy. May I ask you whether you are the attorney for
the union with which he is connected ?

Mr. DiRENzo. That is a difficult question to answer. I think you
could say yes and you could say no. I represented Sam Goldstein in-
dividually. But the beneficiary of any advantages that would be de-
rived from his services, I think, went to the union.

Senator Kennedy. Maybe that would lead into the next question of
who was compensated.

Mr. Direnzo. I received my compensation from the union, I think
as the beneficiary of any services rendered by Mr. Goldstein.

Senator Kennedy. Let me ask you whether the services you are now
rendering Mr. Goldstein, are you being compensated by Mr. Goldstein ?

Mr. DiRENzo. Through the union, and I still say they inure to the
benefit of the union.

Senator Kennedy. Is it your opinion that his presence here is to the
benefit of the union ?

Mr. DiRENzo. I think any services he rendered inure to the benefit
of the union.

Senator Kennedy. Let me ask you if your presence in his testimony
he is giving today, if it is your opinion that this is to the benefit of
the union members and that they should pay your fee?

Mr. Direnzo. I think the union enjoyed his services and, as such, he
is entitled to the benefits of the union.

Senator Kennedy. Is that another way of saying that you are being
paid by the union for your work here ?

Mr. Direnzo. The fact of the matter is I have not been paid for
this appearance.

Senator Kennedy. Who will you bill ?

Mr. Direnzo. Sam Goldstein, and if I get the check from the union,
I will accept it, without apologies to anyone.

Senator Kennedy. I am just asking what the facts are.

Have they been paying you in the past ?

Mr. Direnzo. They have.

Senator Kennedy. Have you represented him in the past in any
litigation ?

Mr. Direnzo. I have. I represented him in an 8-week trial and all
preparation before and subsequent to it.

Senator Kennedy. And the union paid for that ?

Mr. Direnzo. I received checks from the union.

Senator Kennedy. Tell me, if you will, how members of the union
benefited from the actions Mr. Goldstein took which resulted in his
being ijulicted.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18833

Mr. DiRENzo. In this particular case, the union membership would
have had an additional 200 or 300 members if that deal would have
been accomplished.

Senator Kennedy. I don't want to take too much time, Mr. Chair-
man, but I would like to know what the deal was.

Mr. DiRENzo. He tried to get these members into his union.

Senator Kjennedy. By doing what l

Mr. Direnzo. By rendering a service to a man who was having
a labor problem, a very sincere problem. The man said he had never
enjoyed a day's peace because he was at the hands of a Communist
union that were milking him and bothering him and he couldn't get
a day's work from a man.

All he ever wanted, he said, was a day's work, nothing more, nothing
less, and he said he didn't enjoy peace until after these men interceded
and the other miion recognized that they might lose the contract
and another union might get it.

Senator Ivennedy. In other words, then, in return for a compen-
sation, he became the bargaining agent for these people ?

Mr. Dieenzo. He did not. That was the thing they were nego-
tiating for at that time.

Senator Kennedy. How much money did he get from the employer
to give him peace ?

Mr. Dieenzo. He got no money from him. Max Chester received
the sum of $10,000. That is in the record. We never denied it.

Senator Kennedy. He got no money ?

Mr. Direnzo. He didn't get 5 cents of it.

Senator ICjennedy. What did he plead guilty about ?

Mr. Direnzo. He didn't plead guilty. The jury found him guilty
after being not able to agree for 3 days.

Senator Kennedy. What did they find him guilty of after 3 days ?

Mr. Direnzo. Bribery of a union official, and the others were
alleged to be in the transaction.

Senator Ivennedy. They were paid but he was not ?

Mr. Direnzo. Max Chester was paid.

Senator Kennedy. He didn't give any to Sam Goldstein ?

Mr. Direnzo. Apparently not. There is no proof that they did.

Senator Kennedy. What did the jury think ?

Mr. Direnzo. They couldn't agree for 3 days. They did agree
after the third day.

Senator Kennedy. The point I want to make, and I do not want
to interfere at all with your right to protect Mr. Goldstein, he has
obvious rights to counsel, but I am not sure you are as senstive on the
question of the ethical problem involved here as you might be.

It seems t



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 6 of 38)