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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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believe my answer might tend to incriminate me.

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

The Chairman. Is there anything you want to say about your
relationship with the union ?

Mr. DeRoma. I respectfully decline to answer because I honestly
believe

The Chairman. You can say no.

Mr. DeRoma. I believe my answer might tend to incriminate me.

The Chairman. It would be a whole lot shorter to say no, you do
not want to talk about it.

All right, stand aside.

Call the next witness.

Mr. Kennedy. Mr. Dave Frechette.

The Chairman. You do solemnly swear the evidence you shall give
before this Senate select committee will be the truth, the whole truth,
and nothing but the truth, so help you God ?

Mr. Frechette. I do.

TESTIMONY OF DAVE H. FRECHETTE, ACCOMPANIED BY COUNSEL,
H. CLIFFORD ALLDER

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

Mr. Frechette. My name is Dave Frechette. I live at 1835 North-
west 185th Terrace, Miami 69, Fla.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18847

The Chairman. Do you have iiiiy business or occupation that you
can state for the record ?

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

The Chairman. Let the record show Mr. Allder appears as counsel
for the witness.

Proceed, Mr. Kennedy.

Mr. Kennedy. Mr. Frechette appeared before the committee, Mr.
Chairman, some months ago. He is secretary-treasurer and business
representative of local 290 in Miami, Fla., of the Teamsters Union.

Is that right, Mr. Frechette?

Mr. Frechette. I respectfully decline to answer because I hon-
estly believe my answer may tend to incriminate me.

Mr. Kennedy. Mr. Chairman, he is the one that wrote the letter
to Mr. Hofl'a in cormection with their organizing drive down in
Miami, Fla.

Could I read excerpts from that letter ? We have already put it into
the record.

The Chaiicvian. To refresh the memory of the witness and of mem-
bers of the conmiittee, counsel may read the letter.

Mr. Kennedy (reading) :

As I've outlined above, we're in a fight to the finish on this one since it can
malje or break us in this part of the South and we intend to use every tactic at
our disposal. Bernie Rubin, the head of the three laborers locals here, has a
gimmick he has used successfully in the past when he gets into a knockdown
dragout battle with a contractor where FHA or VA financing is involved. He
employs the segregationist feeling here concerning the Negro and makes it
backfire into their laps. On a Sunday when the developer has his model homes
on display to the public and when he makes his sales, he floods the models with
a few hundred colored laborers and their families, who parade through the
models and many express an interest in purchasing a home in the project with
a few actually making application. In the light of this segregation thing here,
this ruins the sales for the day. Then he delivers a crowning blow by having
one family show up with a certified check for the full purchase price, with
Rubin's attorney in tow, and the colored man asks to buy a house. Of course the
man signs the necessary legal papers so that the money is not actually his, but
belongs to the local.

If the sales agent refuses to sell him a house or hedges around about it, a
formal complaint is immediately registered with the FHA and VA, who, as you
know, whenever any Federal money or guarantees are involved can brook no
discrimination. This usually ends it, as the builder gets shook up about having
his mortgage financing fouled up.

Rubin says this should be our ace in the hole on this Heftier situation, as he's
selling his houses twice as fast as he can build them because he has a terrific
financing deal out of the FHA under title 216 which provides up to a 40-year
mortgage and allows a family to get into the house with $400 down total. This
title 216 is some kind of cooperative mortgaging arrangement. If it's fouled up,
or he thinks it's going to be fouled up, he's dead. Rubin's willing to supply the
necessary people for this deal, but he thinks the money should be put up by the
Teamsters for this go-round, since it is a joint venture. It will take $15,000
to buy one of these homes. Actually, there never will be a purchase made and the
money is never out of the control of the local. But, as you well know, my
local doesn't have the money to even put up in the form of a certified check.
If you can see your way clear to having it put up, I think we can be assured
of a winner down here. I wouldn't want to handle the money myself, but would
suggest that Ben Cohen, the attorney here, handle it as your personal repre-
sentative.

The Chairman. Has this witness been interrogated about the letter ?
Mr. Kennedy. He has, Mr. Chairman. This was a letter sent back

36751— 59— ,pt. 54 5



18848 IMPROPER ACTIVITIES IN THE LABOR FIELD

on March 18, 1958, to Mr. Hoffa. As you know, subsequently there
was $10,000 sent to Ben Cohen, and subsequently another $5,000, to
the attorney, Mr. Cohen, which, at that time it was stated was for other
work that Mr. Cohen was doing during that period of time for the
Teamsters Union.

The Chairman. Does the letter refresh your memory? Do you
recall the incident now ?

Mr. Frechette. I respectfully decline to answer because I honestly
believe my answer may tend to incriminate me.

The Chairman. I thought it might refresh your memory.

Go ahead.

Mr. Kennedy. Has the Teamsters Union taken any steps against
you or to deal with you disciplinarily in connection with writing this
letter and suggesting such a proposition, making such a proposition ?

Mr. Frechette. I respectfully decline to answer because I honestly
believe my answer may tend to incriminate me.

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

The Chairman. Stand aside.

Call the next witness.

Mr. Kennedy. Mr. W. A. Smith.

The Chairman. Be sworn, please.

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. Smith. I do.

TESTIMONY OF W. A. SMITH, ACCOMPANIED BY COUNSEL,
H. CLIFFORD ALLDEE

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

Mr. Smith. My name is William A. Smith. I live at 420 Wanda
Drive, Nashville, Tenn, I am an assistant business agent for Local
Union 327, Nashville, Tenn.

The Chairman. Thank you very much.

Let the record show Mr. Allder appears as counsel.

All right, Mr. Kennedy.

Mr. Kennedy. Mr. W. A. Smith, known as Hard-of -Hearing Smitty,
appeared before the committee on December 10, 1957, during the hear-
ings involving the Teamsters in Tennessee. He was identified as a
leader of a mobile goon squad which operated in some four or five
States, going around and dynamiting employers and shooting at em-
ployees. He operated out of local 327 in Nashville, Tenn.

Mr. Smith himself has a record of some 17 arrests and 14 convic-
tions, actually 18 arrests. He has been convicted on 13 different occa-
sions. He is no^v under sentence of 2 to 10 years for assault with
intent to kill.

The Chairman. Has that last conviction been since the committee
started its investigation ?

Mr. Kennedy. That is correct.

The Chairman. Was it based on an incident that occurred which
the committee investigated and about which we had testimony here?

Mr. Kennedy. That is correct.



IMPROPER ACTIVITIES IN THE LABOR FIELD 18849

The Chairman. And his conviction was subsequent to the time the
testimony was developed by this committee ?

Mr. Kennedy. That is correct.

The Chairman. All right. Proceed.

Mr. Kennedy. Mr. Chairman, he was identified as performing dyna-
mitings in at least five instances. He was identified before the com-
mittee as being connected with dynamitings in Nashville, Tenn., Jack-
son, Miss., and Knoxville, Tenn.

The sworn testimony also developed that he was involved in sabo-
taging trucks by siruping motors and slashing the tires of the trucks
in Newport, Tenn., as well as other places. He was involved in some
personal assaults against individuals. Then in connection with one
of those individuals, who was beaten so badly by Mr. Smith and by
other officials of the Teamsters I^nion that the man lost his mind, he
was to be prosecuted ; but Mr. Hotfa intervened with the emj^loyer, and
the prosecution against Mr. Smitli at that time never went forward.

Isn't it correct that you are still a union official, Mr. Smith?

Mr. Smith. I respectfully decline to answer because I honestly be-
lieve my answer might tend to incriminate me.

The Chairman. Is he still serving a sentence?

Mr. Kennedy. He has been sentenced to 2 to 10 years in the latest
conviction and he is now on appeal in the case.

The Chairman. In other words, since this last conviction he has
been on appeal ?

Mr. Kennedy. Tliat is correct.

The Chairman. And the execution of tlie sentence is being stayed
pending the outcome of the appeal.

Mr, Kennedy. That is correct.

Could you tell us if Mr. Hoffa or the Teamsters took any disci-
plinary action against you, Mr. Smith ?

Mr. Smith. I i-espectfully decline to answer because I honestly be-
lieve my answer might tend to incriminate me.

Mr. Kennedy. Mr. Chairman, could I call a witness in connection
with this matter?

The Chairman. Yes.

Mr. Kennedy. Mr. Duffy.

The Chairman. You do' solemnly swear the evidence you shall give
Ijef ore this Senate select committee'shall be the tmth, the whole truth,
and nothing but the truth, so help you God ?

Mr. Duffy. I do.

TESTIMONY OF La VEEN J. DTJTTY

The Chairman. Mr. Duffy, you are a member of the staff of this
committee and have been since the time the committee was established,
or shortly thereafter ?

Mr. Duffy. Yes, sir.

The Chairman. Proceed.

Mr. Kennedy. Mr. Duffy, have you examined the records to deter-
mine whether Mr. W. A. Smith is still a union official ?

Mr. Duffy. He is. I would like to make one other point. He
appeared here as a witness on December 10, 1957. Four days later
he went back to Nashville, Tenn., and was picked up at the Jungle



18850 IMPROPER ACTIVITIES IN THE LABOR FIELD

Club, and was cliarged with being drunk on the street, disorderly and
offensive conduct, and resisting arrest.

He forfeited a $200 bond in that case. That was 4 days after he
appeared before this committee.

The Chairman. That was before tliis last conviction ?

Mr. Duffy. Two months later he was indicted and 2 months after
that, in March 1958, he was convicted.

Mr. KENNEDY. For what offense ?

Mr. Duffy. He was convicted for conspiracy to assault with intent
to kill.

Mr. Kennedy. Was another official involved ?

Mr. Duffy. Mr. William Reynolds, former president of local 621,
Xnoxville.

Mr. Kennedy. Was Mr. Reynolds a union official at the time ?

Mr. Duffy. He was.

Mr. Kennedy. Was he a union official at the time the charge was
made ?

Mr. Duffy. No.

Mr. Kennedy. He had not been a union official for approximately
a year?

Mr. Duffy. That is correct.

Mr. Ej:nnedy. You say the union took no disciplinary action against
Mr. W. A. Smith despite the testimony before the committee and his
conviction ?

Mr. Duffy. I interviewed the president a few days ago and asked
about Mr. Smith, and he said Mr. Smith had negotiated a number of
favorable contracts for the local.

Mr. IO:nnedy. What do we find as far as the records ? Did the local
expend any money on behalf of Smith ?

_ Mr. Duffy. Local 327 spent $9,000 in his behalf, local 621 in Knox-
ville spent $750. The Southern Conference of Teamsters spent $6,000 ;
for a total of $15,750 expended.

_ Mr. Kennedy. And Mr. Reynolds wasn't even a union official at the
time he was indicted ?

Mr. Duffy. That is right.

The Chairman. What you have just given was spent for Mr. Rey-
nolds?

Mr. Duffy. And Mr. Smith ; both.

The Chairman. For the two of them, for their defense ?

Mr. Duffy. Right.

The Chairman. That was in connection with the charges upon
which Mr. Smith has been convicted and which is now on appeal ?

Mr. Duffy. It is now on appeal. The lawyers are still on retainer
down there.

Mr. Kennedy. What were the names of the attorneys who received
this money ? Do you have that ?

Mr. Duffy. I am not sure of that, Mr. Kennedy.

Mr. Kennedy. But some $15,000

Mr. Duffy. $15,750.

Mr. Kennedy. Of union funds were used to defend Mr. W. A.
Smith and Mr. Reynolds, although as revealed before the committee,
they had participated in these dynamitings, and Mr. Smith already
had an arrest and conviction record of some



IMPROPER ACTIVITIES IN THE LABOR FIELD 18851

Mr. Duffy. Sixteen, at that time.

Mr. Kennedy. And some 12 convictions at that time?

Mr, Duffy. Yes.

Senator Kennedy. Does Mr, Hoff a know Mr. Smith ?

]Mr, Duffy, Yes ; I think he does.

Senator Kennedy. Isn't it a fact we have a picture of Mr. Hoffa
and Mr. Smith?

Mr. Duffy. Yes.

Senator Kennedy. This was taken May 15, 1959, it says on the back
of it, shortly after his arrival in Tennessee, taken by the Nashville
Teimessean.

Shortly after his arrival, James Hoffa, right, president of Teamsters
International, stands with his local 327 henchmen and parries questions
from newsmen. Behind Hoffa is Sid Zagri, legislative representative
for the international. The others are, from left. Bob Ozment, busi-
ness agent; Don Vestal, Local 327 president; Frank Reed, business
agent; Ralph "Red" Vaughn, business agent; and W. A, "Hard-of-
Hearing" Smith, business agent.

Sid Zagri is the attorney for the Teamsters carrying on the fight in
the House of Represesntatives against the passage of a reform bill.

That was 1 month ago, after the conviction.

The Chairman. I present to you the photograph that has been
commented above here, and ask you to examine it and state if you
identify it.

(The photograph was handed to the witness.)

(The witness conferred with his counsel.)

The Chairman. Have you examined the photograph?

Mr. Smith. Come again, will you?

The Chairman. I beg your pardon?

Mr. Smith. Do you mind coming again with it?

The Chairman. Yes, I will come again. I say, have you examined
the photograph?

Mr. Smith. I respectfully decline to answer because I honestly be-
lieve my answer might incriminate me.

The Chairman. I believe your attorney is suggesting that you
answer it.

(The witness conferred with his counsel.)

Mr. Smith. I beg your pardon. I misunderstood you. I did look
at it.

The Chairman. All right.

Do you now identify the photograph ? Do you recognize it ?

Mr. Smith, I respectfully decline to answer because I honestly be-
lieve my answer might tend to incriminate me.

The Chairman, We will make it exhibit No. 7.

(Photograph referred to marked "Exhibit No. 7" for reference,
and may be found in the files of the select committee.)

Senator Kennedy. Mr. Smith, isn't it a fact that Mr. Hoffa, in
discussing the information which had been brought out by the com-
mittee in its interrogation of you, that Mr, Hoffa said that they
needed somebody who could kick those hillbillies in line, with reference
to your work?

Mr, S]MiTH. Are you through ?

Senator Kennedy. Yes.



18852 IIVIPROPER ACTIVITIES IIST THE LABOR FIELD

Mr. Smith. I respectfully decline to answer because I honestly be-
lieve my answer might tend to incriminate me.

The CHAiRMAiSr. Are you proficient at kicking them in line?

Mr. SiMiTH. I respectfully decline to answer because I honestly be-
lieve my answer might tend to incriminate me.

Mr. Kennedy. Mr. Duffy, do we find also that the union expended
other funds in connection with the other individuals who appeared
as witnesses, namely, Mr. Perry Canaday ?

Mr. DuEFT. Yes.

Mr. Kennedy. He was a witness before the committee ?

Mr. Duffy. He appeared on December 10, 1957. The first action
in Nashville was in December— I should say January 1955. He was
nrrested for breaking barber shop windows. He was indicted on
May 27, 1955. He was convicted on November 4, 1955, and got a
6-month sentence.

The Teamsters at that time spent $1,500 for him in the defense,
even though it was a barber shop incident and had nothing to do
with the Teamsters.

Mr. Kennedy. In fact, their argument was it didn't have any-
thing to do with a labor dispute ; is that correct ?

Mr. Duffy. Yes. On November 28, 1955, Canaday was arrested
again and indicted with C. B. Richardson, convicted on February 19,
1957, and sentenced to 11 months 29 days. The union expended in
behalf of these two individuals, and incidentally, they just got out of
jail in the past 3 days, $11,050 for the 11 months 29 days they were
in prison.

Mr. Kennedy. They paid money to their wives while they were in
prison ?

Mr. Duffy. They paid moneys to their wivas and families, $300
a month to Mr. Canaday, $200 a month to Mr. Richardson, and they
each received a $100 Christmas bonus.

I interviewed Mr. Vestal, the president of the local, and he stated
to me that they are now going to pay their back salaries. As I say,
within the past 2 days, Mr. Canaday received $200 and Mr. Richard-
son received $100.

Mr. Kennedy. So how much does this total for these individuals
that have been identified with this violence, identified before the com-
mittee ?

Mr. Duffy. I have another case on Mr. Canaday. Mr. Canaday
was also indicted for assault on a fellow by the name of Keith Draper,
who also appeared as a witness in 1957. We don't know the exact
amount, but we do have at least $640 that they expended in his
behalf.

In the defense of that particular case, Mr. Canaday stated that
this was not a labor dispute, but still the Teamsters came to his de-
fense and paid his attorney bills.

The total amount of money expended in behalf of these individuals
attached to local 621, local 327 in Tennessee, was $28,940.

The Chairman. $20,000?

Mr. Duffy. $28,940, and we might have to add an additional $11,-
000 to that if the Teamsters in Nashville decide to give back salaries
to them for the 11 months served in jail.



IMPROPER ACTR'ITIES IX THE LABOR FIELD 18853

The Chairman. That amount has been expended on the defense
of these two individuals and for the support of their families while
in prison ?

Mr. Duffy. Yes.

The Chairman. Is that correct ?

Mr. Duffy. That is right.

The Chairman. And the back salary, if paid, will run some addi-
tional $7,000 ?

Mr. Duffy. Approximately $11,000.

The Chairman. Some $11,000 additionally?

ISIr. Duffy. Yes.

The Chairman. All right.

Mr. Kennedy. That is all, Mr. Cliairman.

The Chairman. Are there any other questions ?

If not, you may stand aside.

Call the next witness.

Mr. IvENNEDY. John Filipoff.

The Chairman. You do solemnly swear 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. Filipoff. I do.

TESTIMONY OF JOHN W. FHIPOFF, ACCOMPANIED BY COUNSEL,
H. CLIFFORD ALLDER

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

Mr. Filipoff. My name is Jolm W. Filipoff. I live at 141 Coral
View Street, Monterey Park, Calif.

The Chairman. Have you any business or occupation to speak of ?

Mr. Filipoff. I respectively decline to answer because I honestly
believe my answer might tend to incriminate me.

The Chairman. Let the record show Mr. Allder appears as counsel.

Senator Kennedy. Mr. Chairman, could I ask the counsel whether
he is today representing the International Brotherhood of Teamsters
or whether he is representing these people each individually ?

Mr. Allder. I am representing each one of them individually.

Senator Ivennedy. This isn't an improper question, but could I
ask you how they all happened to hire the same counsel ?

Mr. Allder. I wouldn't be able to answer that. Senator.

Senator Kennedy. I think you could answer it. You must know
how they all came from different parts of the country to secure the
same attorney.

Mr. Allder. That is true. I could give you five or six reasons. I
told Senator McClellan one time that^^over a year ago I objected to
television. Fortunately for me, he denied that motion of mine and
he allowed the ^^■hole liearing for 2 weeks to be televised into Chicago.

Newsreel men are here at every hearing that I appear at, and that
has been televised throughout the country. I attribute it to that more
than anything else.

Senator Kennedy. Mr. Allder, are you stating as a member of the
bar that it is your presumption that all of these men from different
sections of the country secured your services as lawyer because they
may have seen you on television ?



18854 IMPROPER ACTIVITIES IN THE LABOR FIELD

Mr. Allder. No, sir. That is one reason.

Senator Ej;nnedy. Could you give me the real reason? There^
must be some common clearinghouse. I am just trying to find out
the facts. There is nothing wrong with it, as far as I know.

Mr. Allder. I can assure you there is nothing wrong with it.

Senator Kennedy. Perhaps you can tell me how they all happened
to hire you. Wliat are the other reasons ?

Mr. Allder. The other reason is that m.any attorneys forward cases
to me. I have been practicing law in the District of Columbia for 30
years. I have appeared before many committees both in the House and
Senate, as attorney.

Senator Kennedy. Did all of these attorneys forward the cases to
you?

Mr. Allder. No, they may have talked to other Teamsters that
recommended me. I don't know. I don't ask them.

Senator Kennedy. Wliat is the third reason ?

Mr. Allder. It may have been any one of a number of reasons. It
may have been previous people who testified here, who were known
to them. They may have recommended me.

Senator Kennedy. Are there any other reasons ?

Mr. Allder. Not that occurs to me at the moment.

Senator Kennedy. In other words, your three reasons are (1) TV;
(2) the people who previously appeared here may have recommended
you; and (3) that local lawyers all sent them to see you. Is that all
the reasons ?

Mr. Allder. No, there may be other reasons. Those are three that
occur to me at the present time; yes, sir.

Senator Kennedy. Could you give any other reasons?

Mr. Allder. I don't think any attorney who knows who recom-
mends him directly about any particular matter.

Senator Kennedy. We have about 15 or 20 witnesses, and I think
one or two of them were represented by other attorneys. But you-
represented most of them. Isn't it a fact that someone here in Wash-
ington, on the Teamsters legal staff or the Teamsters organization
itself, secured your services ?

Mr. Allder. No, sir, that is not true. I might say this. Senator, I
would say two-thirds of those appearing here today I have been with
before in the period of the last 2 years. There is an accumulation.
There are only a few of the crowd that I have here today that are
here for the first time. I am appearing the second time with them.

Senator Kennedy. I was trying to find out, and you state it isn't so,
if one of the officers of the international organization of Teamsters
here in Washington, or the attorney for the organization, if they asked
you to represent these people who were subpenaed, and you say that is
not right.

Mr. Allder. I don't want to go that far. There are attorneys who
I do know who represent interests of the Teamsters who have referred
cases to me, such as Mr. FitzGerald of Detroit, who has sent any num-
ber of cases to me.

Senator Ivennedy. Have you represented this gentleman before
this committee?

Mr. Allder. Yes, I have. I represented him in January of this
year.



IMPROPER ACTIVITIES US THE LABOR FIELD 18855

Senator Ivennedy. And Mr. Smith ?

Mr. Allder. No, this is the first time I have represented Mr. Smith.

Senator Kennedy. How did Mr. Smith hire you ?

Mr. Allder. I can't remember the name of the attorney, but there
was an attorney here in town yesterday with Mr. Smith who called me
and after that call I appeared.

Senator Kennedy. You don't remember the name of the attorney ?

Mr. Allder. No, but I can ascertain that name for you.

Senator Kennedy, I am not attempting to imply anything, but I
am interested in the Teamsters attorneys, and I am interested in where
they get their compensation. I am interested in that in some cases there
are conflicts of interest. It is not true in your case, from anything I
know, that that is a fact at all. But I am interested.

The point that seems to me to be important about all of this is that
these people uniformly take the fifth amendment. They have all been



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 8 of 38)