DEPOSnuKT
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
HEARINGS
BEFORE THE
SELECT COMMITTEE
ON IMPEOPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
EIGHTY-FIFTH CONGKESS
FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, 815TH CONGRESS
FEBRUARY 26, 27, 28, AND MARCH 1, 1957
PART 1
Printed for the use of the Select Committee on Improper Activities in the
Labor or Management Field
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
HEARINGS
BEFORE THE
SELECT, WIMITTEE
ON IMPEOPEE ICTIVITIES IN THE
LABOR OR ilANlGEMENT FIELD
EIGHTY-FIFTH COXGRESS
FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, 85TH CONGRESS
FEBRUARY 26, 27, 28, AND MARCH 1, 1957
PART 1
Printed for the use of the Select Committee on Improper Activities in the
Labor or Management Field
UNITED STATES
GOVERNMENT PRINTING OFFICE
89330 WASHINGTON : 1957
\
V
Lit-wi*^ /-?^ / 'isr^j
ph. j-f
Botton Public Libniy
Superintendent of Dncumenti
SELECT COMMITTEE ON IMPROPER ACTIVITIES IN THE LABOR OR
MANAGEMENT FIELD
JOHN L. McCLELLAN, Arkansas, Chairman
IRVING M. IVES, New York, Vice Chairman
JOHN F. KENNEDY, Massachusetts JOSEPH R. MCCARTHY, Wisconsin
SAM J. ERVIN, Jr., North Carolina KARL E. MUNDT, South Dakota
PAT McNAMARA, Michigan BARRY GOLDWATER, Arizona
Robert F. Kennedy, Chief Counsel
Ruth Yodng Watt, Chief Clerk
II
CONTENTS
Area: Portland, Oreg. ; Seattle and Spokane, Wash.
Page
Appendix 347
Testimony of — , ■,, - . • •
Adlerman, Jerome S.-' ^l.Js.-' . 26,46
Calabrese, Alphonse F •_____•_'■_--_-'_-•_' 149
Crouch, Horace 182
Earl, Stanley W 159
Elkins, James B 70, 97, 131, 173, 215
Goldbaum, Hy 280
HUdreth, Lloyd 197
Lambert, William 3
Mallo}', Frank 187
Maloney, Thomas A 49
McLaughlin, Joseph P 60
Morgan, Howard 313
Ruhl, Albert J 16
Spear, Manton J 335
Terry, Stanley G. 221,230,274,293
Thompson, Ann 115
Turner, Wallace 3
EXHIBITS
Introduced Appears
on page on page
1. Ledger sheet, Teamsters' Union Temple Association, July
1948, showing loan reflected as a credit of $3,900 to Tom
Maloney, Sports Center 26 347
2. Journal sheet. Teamsters' Union Temple Association, show-
ing repayments by Tom Maloney 27 348
3. Note for $30,000 signed by Sam Bassett (Klinge loan),
dated at Seattle May 25, 1950, due on demand 32 349
4. Check dated May 24, 1950 to the order of Sam Bassett for
$30,000 signed by Teamsters and Chauffeurs Union,
Local 690, officials, J. E. Whitney, and A. J. Rulil 32 350
5. Bookkeeping machine cash account May 24, 1950, check
No. 576, in the amount of $30,000 showing payments
made by Sam Bassett (Klinge loan) 33 351-352
6. Letter dated February 5, 1957, from Mr. Bassett to Mr.
Ruhl pertaining to payment of $21,000 balance due on
Klinge loan 34 353
7. Letter dated February 6, 1957, from Mr. Ruhl to Mr.
Bassett concerning settlement of balance of note 35 354
8. Letter dated February 13, 1957, from Mr. Ruhl to Mr.
Bassett confirming the acceptance of the executive board
of $2 1 ,000 balance (Klinge loan) 35 355
9. Record of the minutes of the teamsters union dated Decem-
ber 8, 1953, approving a request to put out a loan of
$17,01)0 (Sellinas loan). _.. .47 356
10. Check for $17,000 dated December 18, 1953, to Dudley
Wilson signed by the Teamsters Union Temple Associa-
tion, per J. E. Whitney and A. J. Ruhl (Sellinas loan) 47 357
11. Bank statement showing withdrawal of $17,000 from the
Teamsters Union Labor Temple Association account 47 35S
in
IV
CONTENTS
Introduced Appears
on page on page
12. Document pertaining to extension of loan approved by the
board of trustees of the teamsters union, dated Oct. 24,
1955, to Sam Sellinas for another 2 years _ __ 47 359
13. Letter dated June 5, 1956, from Mr.'Ruhl to Mr. Wilson
serving notice of receiving interest check from Sam Sel-
linas in the amount of $175 47 360
14. Financial statement of the Teamsters Union Temple Asso-
ciation dated December 31, 1955, showing loan to Dudlev
Wilson, attorney, $17,000 (SeUinas loan) ". 48 361
15. Copy of airline receipt for tickets for Tom Maloney and
document indicating payment by Western Conference of
Teamsters 59 362-365
16. Assignment, March 29, 1950, of interest in conditional sales
contract by Thomas E. Maloney to J. P. McLaughlin,
dated December 6, 1949 . 59 366
17. Letters to James B. Elkins from Tom Malonev postmarked
October 5 and 6, 1954 1 89 367-370
18. Application for telephone service to Tom Maloney 150 371
19. Page 524 of the 1956 Polk's Spokane City Directory showing
Tom Malonev listing as teamster organizer 151 372
20 A. Bill in the amount of $21.20 made by the Olympic Hotel,
320 Eddy Street, San Francisco, Calif., for Tom Ma-
loney, dated November 12, 1954 151 373
20B. Check from files of Western Conference of Teamsters in
Seattle, dated November 15, 1954, No. 7843 payable to
order of Olympic Hotel, San Francisco, for $21.20 signed
by F. W. Brewster and John J. Sweeney 151 374
20C. Registration for room, Olympic Hotel, San Francisco, signed
by Tom Maloney, Spokane, Wash., on November 5 151 375
21. Photostatic copy of the Roosevelt Hotel, Portland, Oreg.,
registration for Tom Maloney, entered November 23,
1954, departed November 26, 1954 152 • 376
22A. Record of Olympic Hotel, Seattle, Wash., bill for Tom
Maloney with notation — "Send account to Western Con-
ference of Teamsters, 552 Denny Way, Seattle" 152 377
22B. Resjistration card, Olympic Hotel, Seattle, signed Tom
Maloney, 2704 St. Enolish Lane, Seattle, Wash 152 378
23A. Registration card, long-distance calls, and hotel bill for Tom
Maloney from the Hotel Multnomah in Portland dated
December 0-11, 1054, in the amount of $36.41 — charged
to J. J. Sweeney, 552 Denny Way, Seattle 153 379-384
23B. Multnomah Hotel, Portland, bill for John J. Sweenej'-,
December 7-8, 1954, in amount of $53.45 153 385-386
23C. Check dated January 18, No. 8081, i)avable to Multnomah
Hotel, in sum of $89.86, signed by F. W. Brew^ster,
president, and John J. Sweeney, secretary-ti"easurer, West-
ern Conference of Teamsters 153 387
24A. Copy of Hotel Olympic, Seattle, registration for Tom
Malonev 1 I 153 388
24B. Bill for Tom Malonev from the Hotel Olympic, Seattle, for
December 11-13, 1954, in the amount of $27.40 charged
to John J. Sweeney, 552 Denny Way, forwarded to
Western Conference of Teamsters 153 389-391
25A. Hotel Olvmpic registration showing address as 3711 East
Second\Street, Spokane, Wash., fur Tom Maloney 154 392
25B. Bill for Tom Maloney from Hotel Olympic from January
3-6, 1955, in the amount of $44.17, charged to John J.
Sweeney, Western Conference of Teamsters 154 393-395
26A. Bill with long-distance calls for Tom Maloney from Hotel
Multnomah. Portl.<ind, Oreg., January 6-Feb. 2, 1955. in
the amount of $241.50 rendered to Joint Council of
Teamsters 154 396-403
26B. Document showing entire bill was sent to and paid by the
Joint Council of Teamsters 154 404-405
CONTENTS
Introduced Appears
on page on page
26C. Registration of Thomas Maloney at Hotel Multnomah,
Portland, signed "Citj- of Seattle, Joint Council of
Teamsters" 154 406-414
26D. Check dated February 23, 1955, made out by Joint Council
of Teamsters, No. 37, Portland, Oreg., payable to Hotel
Multnomah for $24 1.50 154 415
27. Registration and bill from Olympic Hotel, Seattle, Wash.,
for January 17 and 18, 1955, for Tom Maloney 154 416-417
28 A. Registration, Olympic Hotel, of Tom Maloney, 3711 East
Second Street, Spokane, Teamsters 155 418
28B. Bill from Olympic Hotel, Seattle, Wash., dated February
22-24, 1955, for Tom Maloney, charged to Western Con-
ference of Teamsters, in the amount of $17.32 155 419-420
28C. Bill from Olympic Hotel, Seattle, Wash., to Western Con-
ference to Teamsters in the amount of $301.20, which
includes $17.32 charge 155 421-422
28D. Check dated March 11, 1955. No. 8274, drawn on "Western
Conference of Teamsters," in the amount of $301.20 paid
to Olympic Hotel 155 423
29. Bill and registration card of Tom Maloney from Olympic
Hotel, Seattle, Wash., for April 13--16, 1955, in the
amount of $29.13 charged to Western Conference of
Teamsters 155 424-425
30. Portland Towers, Portland, Oreg., registration and folio
indicating that Tom Maloney and Joe McLaughlin
resided there from February 1 to June 30, 1955 155 426
31. Application and folio, Park Plaza apartments in Portland,
Oreg., indicating that Maloney and possibly McLaughlin
resided there from June 1 to July 31, 1955 156 428
32. Registration and folio of King Towers, Inc., Apartments,
Portland, indicating Tom Maloney resided there from
Augu.st 1 through October 1, 1955 156 Faces 429
33. Letter dated October 5, 1955, to King Towers Apartments
signed "Tom, apartment 502," stating he is being trans-
ferred to Los Angeles 156 431
34. Withdrawal card of Stanley G. Terry dated November 30,
1954, and bearing signature of L. E. Hildreth 210 432
34A and 34B. Letters to Mr. Stanley G. Terry from L. E. Hildreth,
secretary, dated November 22 and October 6, 1955 210 433-434
Proceedings of —
February 26, 1957 1
February 27, 1957 95
February 28, 1957 159
March 1, 1957 229
f?
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
TUESDAY, FEBRUARY 26, 1957
United States Senate,
Select Committee on Improper Activities
IN the Labor or Management Field,
Washington^ D. C.
The select committee met at 10 a. m., pursuant to Senate Resolu-
tion 74, ajjreed to January 30, 1957, in the caucus room of the Senate
Office Building, Senator John L. McClellan (chairman of the select
committee) presiding.
Present : Senator John L. McClellan, Democrat, Arkansas ; Senator
John F. Kennedy, Democrat, Massachusetts; Senator Irving M.
Ives, Republican, New York; Senator Sam J. Ervin, Jr., Democrat,
North Carolina; Senator Pat McNamara, Democrat, Michigan; Sen-
ator Karl E. Mundt, Republican, South Dakota ; Senator Barry Gold-
water, Republican, Arizona.
Also present : Robert F. Kennedy, chief counsel to the select com-
mittee ; Ruth Young Watt, chief clerk.
The Chairiman. The committee will come to order.
(Present at the opening of the session were Senators McClellan,
Ives, Kennedy, Ervin, McNamara, Mundt, and Goldwater.)
The Chairman. The chair wishes to make a brief opening statement.
Senate Resolution 74, 85th Congress, agreed to January 30, 1957,
established this select committee, which has been officially named the
Select Committee on Improper Activities in the Labor or Manage-
ment Field.
This select committee is authorized and directed —
to coiirUift an investigation and study of the extent to which criminal or
other improper practices or activities are, or have been, engaged in the field of
labor-management relations or in groups or organizations of employees or
employers to the detriment of the interests of the public, employers or em-
ployees, and to determine whether any changes are required in the laws * * * in
order to protect such interests against the occurrence of such practices or
activities.
The need for such an inquiry was established prior to the adoption
of this resolution through preliminary investigations made by the
Senate Committee on Lal)or and Public Welfare, by the Senate Per-
manent Subcommittee on Investigations; tlirough efforts of other
Federal and State agencies; and through the media of the public
press.
The urgency of this problem was recently demonstrated by organ-
ized labor itself when the AFL-CIO felt impelled to adopt strict
codes of ethical practices covering the establisliment of paper locals;
1
2 IMPROPER ACTIVITIES IN THE LABOR FIELD
the administration of welfare funds; the infiltration of racketeers,
Fascists, and Communists ; and with respect to conflicts of interest.
It shall be the purpose of this committee to inquire into and expose
any illej^al or improper practices or activities in these areas and to
ascertain what changes, if any, are needed in the laws of the United
States to prohibit and protect both labor and management and the
Sublic interest against a continuation or recurrence of such wrong-
oing.
In carrying out the duties with which it is charged, it is expected
that this select committee will conduct many series of hearings, both
in executive and public sessions. Today marks the first of its public
hearings.
The select committee's investigation will not be conducted in a spirit
of antagonism toward either labor or management. It will be directed
at getting the truth and exposing evil or wrongdoing wherever it may
exist. It will seek to get facts upon which the Government can move
to better protect labor and management and the ])ublic from practices
and activities that are inimical to the public welfare.
Therefore, in the coming months this committee expects to give
attention to problems inherent in labor-management collusion, under-
world infiltration of the labor movement, misuse of union and welfare
funds, suppression of civil rights and liberties of union members by
their leaders, conflict of interest, and the use of violence, shakedowns,
and extortions.
The scope of the committee's operations will not be limited to any
particular section of the country. We already have investigators in
Philadelphia, Los Angeles, Seattle, Portland, San Francisco, Chicago,
Scranton, Minneapolis, and New York. We have received complaints
that appear to have merit from more than 20 other cities. Investi-
gators will be sent to those cities as early as our workload and man-
power staff will permit.
Nor will the committee's activities be limited to only a few unions
and their concommitant employers. Already under investigation are
the teamsters, carpenters, operating engineers, allied industrial work-
ers, and a number of other unions, together w^ith their management
employers, such as contractors, builders and depai-tment store officials.
The apparently growing influence of the underworld on labor-man-
agement relations will be of particular interest to the committee. In
some areas, criminals and their accomplices have become aware of
loopholes in the laws governing the conduct of labor unions. Tliey
are seeking to take full advantage of the opportunities that deficien-
cies in the present law afi^ord with a view of seizing control of the
labor unions and employer associations. Situations of that type have
assumed disturbins: proportions.
It is expected that this present series of public hearings on the situ-
ation at Portland, Oreg., will reveal some of the illegal and improper
practices to which I have referred, and how in some instances unscru-
pulous union leaders undertake to form, and do form, successful alli-
ances with equally unscrupulous politicians to gain control of and
to operate organized vice in violation of law.
In the near future we expect to hold public hearings with particular
attention to the problem of labor-underworld alliances in the area of
New York, At that time some nationally known hoodlums will be
IMPROPER ACTIVITIES IN THE LABOR FIELD d
called before the committee to explain their connection with labor and
management groups.
It is imperative that the committee learn not only which racketeers
are present in miion and employer associations but also how they
came to be there — who sponsored these men and who protected them.
Mere exposure, however, is not enough to drive these undesirables from
their positions. We must seek to find a way to seal them off per-
manently from the labor-management movement. Their means of
entrance must be blocked.
I say tliat the assignment this committee has been given — the duties
with which it is charged — obviously is important and stupendous.
Its labors of necessity will be arduous and difficult. They can be made
more easy and pleasant, however, and its success and constructive ac-
complishments can be greatly enhanced if it has the sympathetic
understanding and cooperation of labor, management, and the public.
That, the committee earnestly solicits.
We hope that as we undertake to discharge our duties, and as we
pursue this assignment, the committee in its efforts to render this serv-
ice, w411 merit that cooperation, understanding, and assistance that it
seeks.
Senator Ives, do you care to make any comment ?
Senator Ives. The only comment I have Mr. Chairman is to concur
completely with what you had to say. It is obvious that if we are going
to do the job we expect to do, and I think we can do very well, we have
to be utterly impartial. I am sure that every member of this com-
mittee feels that way. I am sure it will be conducted in a just and dig-
nified manner.
Nobody will be seeking to get anything on anybody which is not de-
served.
That is all I have to say.
The Chairmax. The Chair will be glad to yield to any other member
of the committee who may desire to make any comment. Is there any-
one on my right ? Senator Kennedy, or Senator Mmidt ?
A]] rijilit, gentlemen, thank you very much.
Mr. Kenned}', call the first witness.
Mr. Kennedt. Mr. Wallace Turner and Mr. William Lambert.
Tlie CiiAiRM.vx. ^Vili you be sworn? Do you, and each of you,
solemnly swear that the evidence you shall give before this Senate
select committee, be the truth, the whole truth, and nothing but the
truth, so help you God ^
Mr. Turner. I do.
Mr. Lambert. I do.
TESTIMONY OF WALLACE TURNEH AND WILLIAM LAMBEET
The Ciiairmax. Will each of you state your name, and your place of
residence, and your business or occupation, for the record, please ?
Mr. Turner. ]My name is Wallace Turner. I live in Portland,
Oreg., and I am a reporter for the Oregonian, which is a newspaper
which is published there.
Mr. La:mbert. Mj name is William Lambert. I reside in West
Linn, Oreg., a suburb. I am a reporter for the Oregonian.
The Chairman. Gentlemen, you, I am sure, are familiar with the
rules of this committee. You are privileged, if you desire to, to have
4 IMPROPER ACTIVITIES IN THE LABOR FIELD
present with you when you testify, counsel of your own choice, that is,
counsel that may advise you with respect to your legal rights only.
Mr. Lambert. Our counsel is present here, but we see no necessity
for his being with us.
The CHAiEMAisr. I believe you gentlemen were recently awarded
some kind of honor, is that correct? That is the HeyM^ood Broun
award.
Mr. Turner. Yes, sir, we liave.
Tlie CHAiRivrAN. Is that this year ?
]Mr. TirRNER. Yes, sir.
The Chairman. We congratulate you, and we are very glad to
welcome you hei-e.
All right, Mr. Counsel, proceed.
Mr. Kennedy. Mr. Chairman, Mr. Turner and Mr. Lambert have
prepared statements that they have submitted in advance.
The Chairman. Were they submitted within the rules?
Mr. Kennedy. Yes.
The Chairman, Is it a joint statement, or do eacli of you have
separate statements ?
Mr. Turner. We each have separate statement-s.
The Chairman. You may proceed first.
Mr. TuTiNER. Thank you, sir.
Mr. Robert Kennedy, this committee's cliief counsel, has asked Mr.
Lambert and me to prepare an outline of certain events which we
reported for our newspaper, the Portland Oregonian. Some of those
matters are under examinjition by this committee under terms of its
assignment from the United States Senate.
Mr. Lambert and I have worked steadily on this series of stories
during the past year. Tliis is the fourtli time that we have been
brought before investigatir.g bodies by subpena. Our newspaper has
directed us to provide every possible degree of cooperation with offi-
cials investigating the serious matters which we have reported.
The Chairman. The Chair interrupts to inquire. You say this is
the fourth time that you have been bought before investigating com-
mittees by subpena. Were those all Federal investigations ?
Mr. Turner. One of them was, sir. We appeared before the Investi-
gations Subcommittee.
The Chairman. The other two were State investigative authorities ?
Mr. Turner. Yes, sir.
The Chairman. The otlier one that you appeared before as Federal
was just recently before the Permanent Investigating Subcommittee,
is that correct ?
Mr. Turner. That is correct.
The Chairman. Proceed.
Mr. Turner. Our publisher, Mr. M. J. Frey, has said that he
believes the constitutional privileges of a newspaper carry with them
obligations of public service. It is in satisfaction of those obligations
that our newspaper has printed tlie stories to which I referred.
The persons who have committed the misdeeds j^ou will hear of
here liave attributed to us a great many other motives — all of them
dishonorable. But I shall leave to you to decide after you've heard
the evidence gathered by your staff whether we've accomplished a
public service by exposing the chicanery and venality of a group of
racketeers.
IMPROPER ACTIVITIES EST THE LABOR FIELD O
Our paper was slow in getting into this story for the reason that
we were unable to get any solid information to substantiate the many
rumors wo hearJ. Basically, the events involved here constitute a
conspiracy and none of the conspirators was ready to talk.
There were many straws in the wind, but all of them were elusive.
Not until February 1956 were we able to get a basis on which we could
begin investigation. One of the conspirators was disenchanted with
the others. By accident. I contacted him about another matter at the
time when he was ready to talk.
This man is James B. Elkins who will identify himself to you as a
racketeer. Although I had known him since 1949, 1 had not seen him
or talked to him since October 1954. My contact with him a year ago
was to attempt to get information from him about another subject.
He was unable to help me with that. But he mentioned having had
trouble with the teamsters. I pressed him for details and he would
give none. He also spoke of having a partnership arrangement with
Clyde C.Crosby.
Mr. Crosby, head of the teamster union in Oregon, also was a mem-
ber of a city commission charged with the duty of selecting a site on
which to build an $8 million coliseum. Mr. Elkins said he was work-
ing with Mr. Crosby in a real-estate speculation scheme. Mr. Crosby
was to use his influence to bring about purchase of the Elkins-Crosby
property by the public commission on which Mr. Crosby was a member.
The Chairman. As I understand it, Mr. Crosby was a member of the
city government.
Mr. Turner. He was a member of an unpaid public commission,
but in all practical purposes and under the law he was a public official.
The Chairman. Charged with a duty of what ?
Mr. Turner. Of supervising the construction and operation of this
$8 million property which I mentioned.
The Chairman. Did he have any authority or connection with the
selection of a site for the building?
Mr. Turner. He did, sir.
The Chairman. He was on the commission that would select the site,
and approve it and purchase it ?
Mr. Turner. Yes, sir.
The Chairman. All right, proceed.
Mr. Turner. I was told by my publisher and managing editor to
pursue ]\Ir. Elkins for more information. Mr. Lambert was assigned
to work with me on the story. After a great deal of persuasion, Mr.
Elkins provided us with a full story of his conspiracy with these men :
"William M. Langley, district attorney of Multnomah County where
Portland is located.
Joseph P. McLaughlin, a Seattle cardroom operator and bookie.
Thomas E. Maloney, Seattle and Spokane race track figure who had
played a leading part in Mr. Langley's 1954 campaign for district
attorney.
Mr. Crosby, the teamsters international representative for Oregon.
In addition to his dealings with these men, Mr. Elkins also made
startling revelations about Frank "VV. Brewster, a vice president of the
international teamsters union and president of the Western Confer-
ence of Teamsters. He also told many things about the late John J.
Sweeney, secretary-treasurer of the Western Conference of Teamsters.
6 IMPROPER ACTIVITIES IN THE LABOR FIELD
Not only did Mr. Elkins eventually talk freely of those matters.
He had compelling evidence to substantiate his statements. This was
in the form of tape recordings of the conversations held by the con-
spirators in Mr. Maloney's apartment. Some of those recordings are
to be played in these hearings, Mr. Kennedy has said.
I think this is a proper place to make several points clear about Mr.
Elkins. First, he has not asked the Oregonian or Mr. Lambert or
me to give him any protection for anything he has done. Second, he
has made himself available for testimony to any official body which
has issued a subpena for him. Third, despite his cooperation he was
indicted on more than a dozen counts last summer b}'' a grand jury
to which he had given his story under oath. There are more indict-
ments against him than against anyone else involved. But his only
serious complaint was that one indictment accused him of having a
part in a prostitution racket. Despite whatever else he has done, he
prides himself that in his long experience in the rackets he has never
taken the earnings of a prostitute. Finally, Mr. Elkins has been the
victim of one of the most thorough attempts at intimidation I have
ever seen visited on any witness.
The aims in life of myself and Mr. Elkins have been diametrically
opposed in the years that I have known him as a news source. I abhor
the rackets he has operated. I've tried to drive them out of our town.
I have been highl}^ critical of him for his conduct.
But for what he has done during the past year toward wiping out
a criminal conspiracy I believe to have been in the public interest.
A great deal of diversionary noise has been made about his motives.
All sorts of peculiar and bizarre notions have been forwarded by
the group of conspirators to which he once belonged. I can't begin
to analyze him to discover his motivation.
However, I think such concern is pure nonsense. What possible
difference can it make ? Tie's either telling the truth or he isn't. Since
his story is corroborated in hundreds of ways by documents and testi-
mony over which he has no control, I am positive that he is telling the
truth.
Some of that corroboration was obtained in our investigation. But
we had no power of subpena. There were only two of us. We had
no official status. That is one of the major contributions to be made
by these hearings. The excellent staff which serves this committee has
been able to uncover even more evidence of improper activity in the
conduct of the teamsters union in the Pacific Northwest than we
dreamed existed.
As newspapermen, we long ago reached the limit of our ability to
bring about changes that would halt the misuse of the economic power
of this organization. Time and again we have been visited in secret
places at night b}^ honorable workingmen who complained of their
inability to take action to stop the improper activities of their union
leaders. Without exception, they were in terrible fear that their visits
to us might become known to their union s bosses. The fear of retalia-
tion is one of the most potent weapons to silence critieieni from within
the teamsters union in the Pacific Northweast. That fear pervades
this organization.
The Chairman. What do you mean by that?
Mr. Turner. I mean the members of the union are scared to death
to get out of line.
IMPROPER ACTIVITIES EST THE LABOR FIELD 7
The Chairman, They are afraid to tell the truth and to reveal
what they know ?
Mr. Turner. Yes, sir.
The Chairman. Their fear is what ?
Mr. Turner. That their union cards at least will be taken up and
they will be out of employment.
The Chairman. You are testifying under oath that that is what
they have revealed to you in the course of your investigation of this
matter ?
Mr. Turner. I have been so told by members of that union.
Senator Mundt. Following up on that, by retaliation you mean
that they fear that they would lose their means of livelihood?
Mr. Turner. That is one thing that they fear; yes.
Senator Mundt. To be deprived of their jobs, and they could not
support their families ?
Mr. Turner. Yes, sir.
Senator Mundt. There are other types of retaliation which they
fear?
Mr. Turner. Yes, sir; that union has a history in our State of
physical violence to people who disagreed with them. I think that
your stajff has witnesses under subpena who can testify to that.
Senator Mundt. You are sajang under oath that the men who
come to visit you at night are afraid not only of the fact they would
lose their jobs and their means of livelihood, but that they might
also be subjected to physical violence ?
Mr. Turner. Yes, sir.
Senator Ives. Before you proceed from there, Mr. Chairman, do
you know of instances where those conditions have actually existed,
where those things have occurred? You say they allege that that
would happen to them. Do you know of any case where that has
happened ?
Mr. Turner. I can't think of any right now ; no, sir.
Senator I\tes. Thank you.
The Chairman. Proceed.
Mr. Turner. The officials of our State have investigated the specific
violations of law that were committed in the course of the conspiracy
which has been uncovered in the Portland area. But they were imable
to take action to halt many of the improprieties.
No longer than a month ago, the officers of the teamsters union
defied no less authority than a committee of the United States Sen-
ate. Imagine, if you can, what short shrift they give to some State
official who is limited both by budget and by authority.
A newspaper can only go so far. Local, city, county, and State
officials are hampered in the performance of their duties by union
power. The only hope of exposing a disgraceful condition which
impairs the political and economic freedom of a city like Portland
rests in such a congressional body as this one, free from such pres-
sures.
Senator Goldwater. Would the witness yield there for a moment?
You say local, city, county, and State officials are hampered in the
performance of their duty by union power. Is this economic power
or political power ?
8 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Turner. I think it would be best to say it is political power
that they are using against them. I believe there are witnesses under
subpena who have evidence to give along that line, sir.
Senator Goldwater. In your investigations, have you found that
the unions have this political power, and are using it?
Mr. Turni;:r. Yes, sir ; I have.
TheCHAjRMAN. Proceed.
Mr. Turner. A few months ago the Portland City Council passed
a resolution asking that the United States Senate send a committee
to Portland to investigate the teamsters union. On that city council
sat two men who had felt the malicious power of the teamsters. They
are subpenaod as witnesses here, and I think they can and will tell
you exactly why no local authority can deal with the racketeers and
hoodliuns who have risen to prominence and power in the teamsters
union.
They tried to take over our city government. They attempted to
ingratiate themselves with our State officials, and there is some evi-
dence that they have succeeeded to at least a limited degree. They
plotted the overthrow of the attorney general of Oregon because he
was violently opposed to organized prostitution.
And, final Ij', there is no other forum where a hearing on these facts
€an be had. Twenty years ago, Dave Beck stayed in the State of
Washington to avoid service of a subpena requiring testimony be-
fore an Oregon grand jury that was investigating beatings, bombings,
and acid throwing of goons in his union. Now he goes to Europe.
The Chairman. All right, Mr. Counsel, proceed with any ques-
tions.
Mr. Kennedy. Mr. William Lambert has a statement that he is
prepared to lead, Mr. Chairman.
The Chairman. All right, Mr. Lambert, you may proceed.
Senator Mundt. Before you conclude with Mr. Turner, I have a
question that I would like to ask in connection with the statement on
page 3 of your presentation.
You made the statement :
Finally, Mr. Elkins has been the victim of one of the most thorough attempts
at intimidation i have ever seen visited on any witness.
Will you dilate on that a little bit, and give us more details?
Mr, Turner. I must rely in what I am going to relate to you on
what Mr. Elkins told me. He tells me that he has had men come
to his house at night to threaten him; that they have come to him,
and that he has had to use physical force to drive them away. He
has been told that, unless he refuses to testify to this committee and
to State authorities, he will be indicted for violation of the Federal
wiretapping statute, and he is now under indictment for violation of
that statute.
There is a great deal of material along that line, Senator, which
I would feel better about if you would have Mr. Elkins testify to.
Senator Mundt. You are relying for your statement in that con-
nection upon information received from Mr. Elkin?, whif^h we can
elicit from him when he is a witness ?
Mr. Turner. Yes, sir.
Senator Mundt. The purpose of my inquiry was whether there was
other independent information that had come to f^our attention of
IMPROPER ACTIVITIES EST THE LABOR FIELD 9
oases which had reached the press, or actual cases of intimidation
which might have reached the police courts.
Mr. Turner. Well, sir, he and one of his employees have been
harassed by the district attorney of Multnomah County, who obtained
certain warrants used as a basis for a search of the home of one of
Mr. Elkins' employees. There were certain tape recordings seized
there. Before the court could rule on the validity of the search war-
rant, copies of these tape recordings were made, and they went all
over our city. Those tape recoiclings were used as a basis of wire-
tapping indictments in the State courts, and as a basis of one in the
Fedeial courts against both of them. The State court of Oregon has
held that evidence was illegally seized and should be quashed. That
is one example that comes to me offhand.
Senator Mundt. Because the district attorneys come and go, and
we do not want to slander some innocent district attorney, I think
that you should tell us the name of that district attorney.
Mr. Turner. This gentleman's name is William INl. Langley.
Senator Mundt. That is the one you mentioned ?
Mr. Turner. Yes ; it is.
Senator Kennedy. On tiie top of page 3, referring to the grand
jury indictment, is that sentence where you say:
Despite his cooperation he was indicted on more than a dozen counts —
is that suggesting that he was indicted on those counts because of his
cooperation with you, by the grand jury ?
Mr. Turner. No, sir; I did not mean that, sir. I merely meant to
point out that he was friendly with the grand jury and he answered
the questions, but still he was indicted.
Senator Kennedy. Would you suggest indirectly that it was ex-
cessive because he cooperated with you in any way?
Mr. Turner. Xo; I meant to suggest he was indicted in spite of
his answers.
Senator McNamara. In the second paragraph on page 2, you men-
tion Mr. Crosby was a member of the city commission. How many
members were on that commission ?
Mr. Turner. There were five.
Senator McNamara. Was he appointed by the mayor or by the
council, or whatever you call your municipal body?
Mr. Turner. He was appointed b}^ the mayor.
Senator McNamara. He really represented the mayor in this situa-
tion.
]\Ir. Turner. Well, sir, I would say that he represented the people
of Portland.
Senator McNamara. By appointment of the mayor ?
Mr. Turner. Yes, sir.
Senator McNamara. That is all, thank you.
Senator Ervin. I caught the deduction from your statement that
Mr. Crosby was interested in selling to the city of Portland property
in which he had an interest for use for this coliseum or stadium.
Mr. Turner. I believe that is right ; yes.
Senator Ervin. At least that vras the information you go, from
Mr. Elkins.
Mr. Titrner. Yes, sir ; and from other sources.
The Chairman. Are there any other questions of this witness at
the moment ?
10 IMPROPER ACTIVITIES IN THE LABOR FIELD
All right, Mr. Lambert, you may proceed to read your statement.
Mr. Lambert. My name is William Lambert. I reside at 1567 Holly
Street in AVest Linn, Oreg., a suburb of Portland. 1 have been a
newsi)aperman for 12 years, the last 6 of which I have spent as a
general assignment reporter for the Oregonian, a metropolitan daily
newspaper in Portland. On a number of occasions, I have collab-
orated with Wallace Turner in the development of news stories of
an investigative nature.
Mr. Turner and I were assigned early in IMarch 1956, to make a
thorough investigation of reports the Oregonian had received of an
attempt by certain officials of the teamsters union and their under-
world representatives to invade Portland's underworld and expand
vice operations in our city. We have worked full time on this assign-
ment since.
In a separate statement, Mr. Turner has detailed for this committee
some of the circumstances leading up to our assignment to the story.
I have read Mr. Turner's statement, and to save time I will not cover
here the same areas he has discussed.
Mr. Turner's statement tells of instances of improper union acivity
that came to our attention. There is one he did not mention. It
concerned the coin-machine industry, which repeatedly had been in
the news because of a battle over whether the city would outlaw pin-
ball devices. It was another of the incidents that led us to believe
all was not proper in the teamstei's union in our community. This
was the situation : A Portland tavern operator bought a shuffleboard
machine from a Seattle company to replace one he had been operat-
ing on a commission basis w^ith its owner, a Portland coin-machine
dealer. Soon after the machine was installed, pickets from the team-
sters union appeared and sliut off tlie tavern's beer deliveries. All
other coin machines in the place were removed by their owners. Cus-
tomers quit coming in. The tavern was almost bankrupt.
It developed that the trouble stemmed from a conspiracy between
the union and an association of pinball dealers to monopolize the in-
dustry. No tavern owner was to be allowed to own his own machine.
They had to rent them from particular persons, otherwise the union
would step in and picket the offending tavern. And this is exactly
what happened. To say the least, this obviovisly was not a legitimate
labor dispute.
The Chairman. Are you implying there or stating that in an effort
to control these machines, the o]3eratio]i of these machines, a place of
business would be picketed by the teamsters union members?
Mr. Lambert. That is right, sir.
The Chairman. In order to prevent the delivery of goods to that
business ?
jNIr. I^AMBERT. That is right, sir.
The Chairman. You said you did not think that was a legitimate
union activity or interest.
Mr. Lambert. It most certainly is not: in my judgment.
The Chairman. In other words, it involved notliing with respect
to labor, wages, or working conditions of tlie members but it was sim-
ply to undertake, and this is the implication I get from your state-
ment, to force a monopoly.
Mr. La^ibert. That is exactly right, sir.
EVIPROPER ACTWITIES EST THE LABOR FIELD H
The Chairman. Proceed.
Mr. Lambert. There was some litigation in the Federal court con-
cerning^ this particular case, "wliich I am discussing. The court so
held, that it was not a legitimate labor dispute.
Before we could complete our investigation, a series of incidents
occurred which precipitated us into print with the findings of our
probe. A series of articles was written by Mr, Turner and myself and
published in the Oregonian. Soon afterward, the Governor of Oregon
directed the attorney general to conduct a grand jury investigation of
the matters we had detailed in our articles.
The grand jury sat for 2 months and finally indicted some of the
individuals we had named in our series as conspirators. They included
the district attorney, William M. Langley ; the international organizer
for the teamsters union in Oregon, Clyde C. Crosby ; two Seattle rack-
eteers who were intimates of key officials in the Western Conference of
Teamsters; and James B. Elkins, a local racketeer.
The fact that we were short of time and facilities to make a complete
investigation resulted in our covering only a portion of the labor rack-
eteering situation existing in our city. For that reason we are pleased
that this committee, with its efficient stafi, is making a thorough in-
vestigation in Portland.
The State's investigation of the Portland situation has been ham-
pered because Oregon statutes make no provision for a special grand
jury to handle ramified investigations such as this. Typical of the
problems growing out of this single giand jury system is the fact that
the same grand jury has to handle criminal matters submitted to it by
Mr. Langley, the district attorney who is under indictment, as well as
matters presented by the attorney gerieral, Kobert Y. Thornton.
The Chairman. Do I understand that Mr. Langley, the present
State district attorney, is a State official ?
ISIr. Lambert. Yes, sir.
The Chairman. He is presently under indictment and yet he is serv-
ing or continuing to serve in that office and presenting to the grand
juiy testimony to seek the indictment of the officers ?
Mr. Lambert. That is right, sir.
And Mr. Thornton's presentations to the grand jury — he is the at-
torney general — in some instances have involved Mr. Langley. Mr.
Langley was the accused.
Mr. Langley, who is charged with conspiring with underworld rep-
resentatives of certain teamster union leaders to operate illegal enter-
prises, still is able to function as district attorney and use the power
of his office in his own defense. In several instances he has brought
about the indictment of persons listed as witnesses against him in
criminal cases in which lie is a defendant.
Our experiences in this investigation have made abundantly clear
to us the need for new Federal legislation in the field of labor to reduce
the opportunity now existing for racketeers to attain, and hold, posi-
tions of unbridled power in the labor movement.
Senator Ives. Mr. Chairman. At this point you are talking about
new legislation. Would you mind giving an indication of what you
have in mind in that subject ?
Mr. Lambert. I am not a lawyer, sir.
89330— 57— lit. 1 2
12 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Ives. I am not either, but I am interested in labor legisla-
tion.
Mr. Lambert. We have discussed this, and we haven't made a thor-
ough study of the thing. All we can see is that certainly as a layman
there are situations existing which must be subject to correction by
proper legislation. Where a labor union can empower its officials, as
it has done in this teamsters union in our experience, so that those of-
ficials can dominate the membership, and dominate the individual
members, they lose the democratic system in a labor union. This is a
little incoherent, but I am a member of a labor union, the American
Newspaper Guild, an honorable union. I know from having read
the constitution and by-laws of my union that we have procedures set
up for an appeal from unjust actions brought against us by leaders in
our union. AVhether such a thing exists in the teamsters, I am not sure.
If it does exist on paper, it certainly, as indicated to us, does not exist
in practice.
There may be some type of legislation which could correct that
situation. I don't have anything specific.
Senator Ives. It is a little difficult to legislate in that field. That
is why I raised the question.
Mr. Lambert. I appreciate that, sir.
Senator Ives. Thank you very much. If you have some ideas, I
am sure we would appreciate knowing them.
Mr. Lambert. All right, sir.
I am convinced that this Senate select committee has within its
grasp an opportunity to make a major contribution to the welfare
of the general public, and particularly to the welfare of honest work-
ing people who hold membership in labor unions.
Labor racketeering, such a we encountered in our city, I am con-
vinced, cannot survive public disclosure. The thousands of honest
members of the teamsters union in the Northwest are entitled to
know what some of their union officials have been doing in areas
entirely unrelated to those of legitimate union works, and I believe
they want to know.
The searching spotlight which this committee is turning on labor
racketeering, I believe, will do much to remove these malignancies
from organized labor. A complete detailing of the Portland story
in these hearings will help other cities recognize the symptoms of
conditions that arise when corrupt labor leaders, public officials,
and racketeers conspire against the public interest.
The Chairman : Thank you very much, Mr. Lambert.
Are there any questions ?
Senator Kennedy. Eegarding the Portland tavern owner-operator,
do you know where those machines were being made; the coin ma-
chines ?
Mr. Lambert. Which one, sir?
Senator Kennedy. The shuffleboard machine that was from a
Seattle company.
Mr. Lambert. I don't know where it was manufactured. It was
distributed by a Seattle company called the American Shuffleboard
Sales Co.
Senator Kennedy. Do they do that for a number of taverns or just
this one case that you named ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 13
Mr. Lambert. I can't say for certain. I know there were attempts
made at other taverns. I know of this one specific case.
Senator Kennedy. Do you know if the tavern owner attempted to
get an injunction against the imion?
Mr. Lambert. He did, sir.
Senator Kennedy. Was he successful ?
Mr. Lambert. He got a preliminary injunction. What the status
of the case is at this point, I am not sure.
Senator Kennedy. Did the union desist after he secured the in-
junction?
Mr. Lambert. To the best of my knowledge, it did ; yes.
Senator Kennedy. Do you know if there was a conspiracy to take
over these coin machines, or these shuffleboard machines, in Seattle,
from this one case you have given? Is there evidence that this
was a beginning of an attempt to take over all of the machines in
Seattle by using the teamsters union as a weapon against the tavern
owners ?
Mr. Lambert. I do not know that. Senator.
Senator Kennedy. Thank you.
Senator Mundt. Mr. Chairman, I have a question. On ])age 2
you refer to a very incongruous situation in which you point out that
Mr. Langley, the district attorney who is under indictment but still
serving as the district attorney, was successful in securing indict-
ments against some of the persons listed as witnesses against him. I
was wondering whether some of the indictments secured against Mr.
Elkins would fall in that category.
Mr. Lambert. They would, sir.
Senator Mundt. Thank you.
The Chairman. All right; Mr. Kenned}^, the chief counsel, will in-
quire.
Mr. Kennedy. Going back to this tavern, what the tavern owner
was trying to do was to buy a machine of his own; is that not correct?
Mr. Lambert. That is correct.
Mr. Kennedy. And the union came in to prevent him from buying
his own machine ?
Mr. Lambert. That is exactly right.
Mr. Kennedy. They would not allow him to own his own machine
and to have his own machine in the tavern; is that right?
Mr. Lambert. That is right.
Mr. Kennedy. And it was brought out in that case that this was
the procedure that had been followed in Seattle?
Mr. Lambert. There was a mention of it.
Mr. Kennedy. And that the union and the shuffleboard operators
had a contract which provided that the union would step in wJienever
any tavern owner attempted to buy his own machine ?
Mr, Lambert. That is right.
Mr. Kennedy. And the picketing that went on was not active pick-
eting, but it was just a teamster official sitting in an automobile in
front of the tavern preventing any deliveries of beer ; is that correct ?
Mr. Lambert. That is corrrect.
]\Ir. Kennedy. There are some pictures here.
The Chairman. Can you name that official ?
Mr. Lambert. Frank Mallov.
14 IMPROPER ACTIVITIES EST THE LABOR FIELD
The Chairman. As I understand you, he would park in front of
the tavern and when anyone came up to make a delivery of beer or
whatever delivery it was, he would refuse to permit them to deliver?
Mr. Lambert. That is right.
Mr. Kennedy. We have two pictures here, one of Frank Malloy sit-
ting in his car, with a beer truck about to drive up, and the second
picture is him out of the car talking to the beer-truck driver.
The Chairman. Can the witness identify those pictures ?
Mr. Lambert. I cannot identify them ; I have not seen them. I can
identify Mr. Malloy.
The Chairman. We will keep the pictures until we have some wit-
ness who can identify them.
Are there any further questions ?
(The pictures referred to may be found in the files of the Select
Committee. )
Senator Kennedy. As this is prohibited under the Taft-Hartley
Act, perhaps you could tell me why the local office of the National La-
bor Relations Board or the General Coimsel was not successful in
stopping it under the boycott provision.
Mr. Lambert. I am not sure. As I recall the Federal court case,
tliey sought the injunction on the ground that the procedure being
used was a violation of the antitrust statutes. The court in its memo-
rjindum which accompanied its order granting the preliminary injunc-
tion, set forth some very interesting language, pointing out that it was
clearly in violation of the antitrust statutes, and that the procedure
followed by the union in collusion with the association of coin machine
people was in restraint of trade or commerce, and then used this lan-
guage, that it definitely was not a legitimate labor dispute.
Now, what the NLRB did in connection with it, I don't recall. I
don't know of anything that was done.
Senator Kennedy. I am trying to find out why it was not stopped
under the Taft-Hartley Act which prohibits that kind of a boycott.
Mr. Lambert. I don't know.
Senator Ives. May I interrupt there. Senator Kennedy ? It occurs
to me that possibly the jurisdiction did not exist, and it did not have
the authority as the dispute was too small. There is a limitation on
that, and I am inclined to think that would apply in a situation of this
kind.
Mr. Lambert. I do not know.
Senator Ives. It is not interstate.
Senator Kennedy. If the machines came across State lines, it would
seem to me that it would be.
Senator Ives. There is a limitation that they have set as to the size
of the employer, and how much business is involved in dollars. I have
forgotten how much it is. I do not think it would come under that
test of jurisdiction.
The Chairman. Is there any further question?
Senator Goldwater. I would like to ask the witness, pursuing this
story, have you found any evidence of any of these gentlemen being
active in local or county or State politics?
Mr. Lambert. A number of them, sir.
Senator Goldwater. Were the teamsters, as such, active in the poli-
tics of those three subdivisions ?
Mr. Lambert. Very active, yes.
IMPROPER ACTIVITIES IN THE LABOR FIELD 15
Senator Goldwater. Were they active to the extent of backing par-
ticular candidates ?
Mr. Lambekt. That is right, sir, and I am sure that tlie committee's
counsel has witnesses under subpena who will detail that.
Senator Goldw^\ter. In your study of this case, could you determine
whether or not the unions backed these candidates with money ?
Mr. Lambert. They did, sir, and in one instance they financed the
entire campaign of one of the candidates for the city counsel. In his
reporting under the State statutes, he reported that all of his financing
came from the teamsters union.
Senator Goldwater. Well, I will not ask further questions at this
time. Thank you very much.
Senator Ervin. I w^ould like to ask a question. Was Frank Malloy
an oiRcial of the city of Portland as well as an official of the teamsters
union ?
Mr. Lambert. No, he was not. He w^as an official of the teamsters
union.
Senator McNamara. I think properly this question should be di-
rected to the other witness rather than the present one, Mr. Turner.
This question of support of public officials by these people has been
brought up. Was the mayor who appointed this man to the commis-
sion you referred to supported by tlie teamsters union officials?
Mr. Turner. It is mv recollection, sir, that he was so supported in
1952.
The Chairman. Can you speak a little louder, Mr. Turner ?
Mr. Turner. It is m}^ recollection that in 1952 the teamsters union
did support that man, yes.
Senator McNamara. Was he endorsed by your newspaper or not?
Mr. Turner. In 1952 when he won, he was not. In 1956 wdien he
lost, he was.
Senator McNamara. That is all, Mr. Chairman.
The Chairman. Are there any other questions on my right? Mr.
Chief Counsel, do you have any further questions ?
Mr. Kennedy, No.
The Chairman. Thank you very much. You w^ill remain inider
your present subpena, subject to call for further testimony.
On behalf of the committee we express our appreciation to you.
You have been very helpful throughout the preliminary work, and
helpful to the staff, and helpful to all of us.
We would very much appreciate it if you will stand by, and your
further testimony may be needed.
At any time, how^ever, that the chief counsel of the committee tells
you that you are released from your subpena, you may accept that
as being from the chairman.
Mr. Turner. Thank you,
Mr. Lambert. Thank you.
The Chairman. Call the next witness.
Mr. Kennedy. Mr. A. J. Euhl, secretary-treasurer of Local 690,
Brotherhood of Team.sters.
(Present in the hearing room were Senators McClellan, Ives, Ken-
nedy, Ervin, McNamara, Mundt, and Goldwater. )
The Chairman. Will you be sworn, please ? Do you solemnly swear
that the evidence you shall give before this Senate select committee
16 IMPROPER ACTIVITIES IN THE LABOR FIELD
shall be the truth, the whole truth and nothing but the truth, so help
you God ?
Mr. RuuL. I do.
TESTIMONY OF ALBERT J. RUHL
The Chairman. Mr. Ruhl, state j^our name, your place of residence,
and your business or occupation, please, sir.
Mr. Ruhl. Albert J. Ruhl, 3511 West Euclid Avenue, Spokane,
secretary of the Teamsters Local 690.
The Chairman. How long have you been secretary of that union?
Mr. RtJiiL. I think probably 32 years.
The Chairman. About 32 years ?
Mr. Ruhl. Yes, sir.
The Chairman. You are familiar with the rules of the committee,
I am sure, that entitles you to have counsel present if you desire, to
advise you respecting your legal rights while you testify ?
Mr. Ruhl. Yes, sir.
The Chairman. Have you arranged for your counsel or do you
waive counsel ?
Mr. Ruhl. I have not arranged for counsel.
The Chairman. You waive counsel ?
Mr. Ruhl. Yes.
The Chairman. All right, proceed, Mr. Kennedy.
Mr. Kennedy. Mr. Ruhl, you have been discussing this matter with
Mr Selinger out in Spokane, have you not?
Mr. Ruhl. Yes, sir.
Mr. Kennedy. You have discussed it with me and other members
of the staff since you arrived here ?
Mr. Ruhl. Yes, sir.
Mr. Kennedy. Now, you are familiar with Mr. Tom Maloney and
you know Mr. Tom Maloney ?
Mr. Ruhl. Yes, sir.
Mr. Kennedy. How did you first meet Tom Maloney ?
Mr. RuHi.. I met him in Seattle about 1946 or 1947.
Mr. Kennedy. Wliat was he doing at that time?
Mr. Ruhl. I do not know whether he was doing anything or not.
I was going out to the racetrack on a Sunday morning or Monday
morning and Mr. Evans was to pick me up and he called me up and
said Tom Maloney would pick me up.
I didn't know who Tom Maloney was, but after I saw him I had
seen him a couple of times.
Mr. Kennedy. Did you see him over a period of time after that ?
Mr. Ruhl. No.
Mr. Kennedy. Not frequently ?
Mr. Ruhl. Now and then.
Mr. Kennedy. Just now and then ?
Mr. Ruhl. Yes, sir.
Mr. Kennedy. Did you know him to be a very close friend of Mr.
Frank Brewster ?
Mr. Ruhl. Yes.
Mr. Kennedy. AYlio is Mr. Frank Brewster ?
Mr. Ruhl. He was secretary at that time of Teamsters Local 174,
secretary of the Joint Council 28.
IMPROPER ACTIVITIES IN THE LABOR FIELD 17
Mr. Kennedy. Wliat is lie?
Mr. RuHL. Secretary of Joint Council 28.
Mr. Kennedy. Which is in Seattle, Wash. ?
Mr. RuHL. Yes, sir.
Ml-. Kennedy. You understood that he was a very close friend of
]Mr. Frank Brewster.
Mr. RuHL. That is rio;ht.
Mr. Kennedy. Now, about a year after you met Mr. Tom Maloney,
did he come to you and request a loan from your union ?
Mr. RuHL. It was some time either a year or a year and a half later.
Mr. Kennedy. During 1948 ?
Mr. RuHL. Yes, sir.
jVIr. Kennedy. And he requested a loan ?
Mr. RuHL. Yes, sir.
Mr. Kennedy. What was the purpose of the loan ?
Mr. RuHL. He had been opening a place in Spokane called Ma-
lonev's Sport Center.
Mr. Kennedy. A^Huit was to be in the Maloney Sport Center?
Mv. Rlhl. a cigar counter in there, and a restaurant in tliere, and
a beer bar, and a card room in the back end, and baseball pool, and
football pool, and blackboard.
Mr. Kennedy. And a blackboard ?
Mr. RuHL. Yes, sir.
Mr. Kennedy. I^^ere they taking horse bets in tliere, too ?
Mr. RuHL. I don't know that.
Mr. Kennedy. Did you understand that was a fact ?
Mr. RuHL. Was it ?
Mr. Kennedy. Did you understand that to be a fact ?
Mr. RuHL. I understood they were.
Mr. Kennedy. So it was a beer parlor and a gambling place, is that
right ?
Mr. RuHL. I believe you would call it that.
Mr. Kennedy. Now, Mr. Tom Maloney came to you and requested
that the union make a loan for him to get into that business, is that
right?
jNIr. RuHL. Xo, not to get into it. He had started the business, but
before he got it open, he ran out of money.
Mr. Kennedy. He wanted the money ?
jNIr, RiTHL. He ran out of money, and he asked me to let him have
$3,900.
]\Ir. Kennedy. What did you say to him at that time ?
Mr. Rtjhl. I told him I couldn't do it.
Mr. Kennedy. Had it been the practice of your union to make loans
to people i
^h\ RuHL. No, sir.
Mr. Kennedy. Had the union made any loans prior to that time ?
Mr. RuHL. I don't think so.
jNfr. Kennedy. You had not.
Mr. RunL. No, sir.
Mr. Kennedy. So you turned Mr. Tom Maloney down, is that right?
Mr. RcHL. The first time he asked me ; yes.
Mr. Kennedy. You did not feel that it was a proper kind of loan
for your union to make ?
18 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. RuHL. I think so.
Mr. Kennedy. Did you ever loan the money to him ?
Mr. KiTHL. I did.
Mr. Kennedy. For what reason did you ultimately loan him the
money.
Mr. RuHL. He couldn't open his place, and I took it up with mem-
bers of my board and told them about it, that he would be willing to
give me the deed on the house in Edmonds, Wash., for security. They
told me if I thought it was O. K. to let him have the money.
Mr. Kennedy. Did you ever discuss it with anyone else, Mr. Ruhl ?
Mr. liuHL. I think that I discussed it with Mr.* Brewster; yes.
jMr. Kennedy. What did Mr. Frank Brewster tell you^
Mv. KuHL. He told me to help him out.
Mr. Kennedy. Now, have you the minutes of the meeting where you
discussed this with your board ?
Mr. Ruhl. No ; I haven't.
]Mr. Kennedy. Does it appear in the minutes of your meeting that
you ever discussed this with the board members ?
Mr. Ruhl. Well, that was back in 1948, and I don't have any minutes
further than 1950.
Mr. Kennedy. You do not have those minutes anymore ?
Mr. Ruhl. No.
I\Ir. Kennedy. What became of those minutes ?
Mr. Ruhl. They were in a book, and tliose are the books, and I have
two organizations over there and the minutes of the Building Temple
Association are there.
Mr. Kennedy. Did that show up that you discussed this matter with
your board members ? Does it show up in the minutes ?
Mr. Ruhl. No.
Mr. Kennedy. Would you explain to the committe why it does not
show up ?
Mr. Ruhl. Could I explain ?
Mr. Kennedy. Yes.
Mr. Ruhl. Well, I think it got so it was in a hurry, and I called as
many members of the board as I could together, and I took it up with
them, and they told me to go ahead and let him have it as long as I
had security.
JMr. Kennedy. For what reason was there a hurry on it ?
Mr. Ruhl. He wanted to get his place opened.
]Mr. Kennedy. It was not your usual practice to make loans, was it?
Mr. Ruhl. No ; it was not.
Mr. Kennedy. And you were in a hurry to loan this $3,900 to some-
body who wanted to open a card room and a gambling place?
Mr. Ruhl. I wasn't in a hurry.
Mr. Kennedy. Who was?
Mr. Ruhl. He was in a hurry.
Mr. Kennedy. Was he such a big figure there in Spokane that you
were in a hurry ?
Mr. Ruhl. I don't think so ; I just felt sorry for him.
Mr. Kennedy. Was it also because of his association with Frank
Brewster ?
Mr. Ruhl. I tliink so.
Mr. Kennedy. Was that an important factor ?
Mr. Ruhl. I think so.
IMPROPER ACTIVITIES IN THE LABOR FIELD 19
Mr. Kennedy. "^Hien you loaned him the money, the $3,900, was
tliere any provision made for any interest ?
Mr. T?uiiL. Yes, sir.
Mr. Kennedy. What provisions were made?
]\[r. RuHL. I think that he a^^reed to ffive me $350 interest.
Mr. Kennedy. You think that he did ?
INfr. RuHL. I am sure that he did.
Mr. Kennedy. Now, last nicflit I talked to you ahout a quarter of
eleven. First let us go throu<2;h this, Mr. Ivuhl. The lirst time our
staff investigators interviewed you, you said that this had been a per-
sonal loan, is that correct ?
You said that the loan had gone to jSlr. Maloney as a personal loan.
Mr. RuHL. No ; I don't think that I said that. I just said I loaned
him money, and I didn't say whether it was me or the union.
Mr. Kennedy. Then, the second time when we sent another inves-
tigator out there to see you, you said that the loan was unsecured and
was without interest.
Mr. Rtthl. That is right.
Mr. Kennedy. Xow, you have since found out that the loan was
secured and you had forgotten that.
Mr. RuHL. Well, that night that he was out to my house, I didn't
think about it, and the next morning I did tell Mr. Selinger that after
talking with a couple of the fellows who were in the building, the
recording secretary and one trustee, that we did have the deed to his
house.
Mr. Kennedy "What were the names of the people that refreshed
your recollection ?
Mr. RrHL. J. E. "Woodlej^ and George Bowman.
Mr. Kennedy. And they refreshed j^our recollection as to the fact
that Mr. Maloney put up a house, the deed of a house ?
Mr. RuHL. That is right.
JNIr. Kennedy. What about the interest? Wlien did it come to you
or occur to you that there was interest paid ?
]Mr. RuiiL. When I talked to Selinger, I didn't think that I had the
interest, and the books in the building didn't show it. I was pretty
sure that he had paid me sometime later. I went through some other
books around there, and I find that there is an item of $350 on the
teamsters books, local 690.
Mr. Kennedy. Which is a difl'erent union ?
]Mr. RuiiL. Well, it is the same union. That union owns the build-
ing.
]Mr. Kennedy. When I talked to you last night, you said that you
did not think that $350 was interest ; is that right ?
Mr. RuiiE. I wasn't sure.
Mr. Kennedy. Well, let us go through the conversation. Didn't
you say maybe you put the $350 in yourself ?
Mr. RuiiL. I said either he gave it to me or I put it in.
Mr. Kennedy. Can you remember whether you put it in or whether
he put it in ?
Mr. RuiiL. I am prelty sure that he gave it to me.
Mr. Kennedy. Why did you think it is possible that you might
have put in yourself ?
Mr. RuHL. Well, I think I was trying to be fair with the union.
If he hadn't paid me, I would luive paid it.
20 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Was there anything or any note that indicated that
there was to be $350 paid ?
Mr. RuHL. It was on the note that I have from him ; yes.
Mr. Kennedy. Do you have a copy of that note ?
Mr. RuHL. No ; I don't.
Mr. Kennedy. When did you destroy that note ?
Mr. RuiiL. I think probably 4 or 6 months ago.
Mr. Kennedy. For what reason did you destroy it ?
Mr. RuiiL. Well, there wasn't any reason. It was laying in the safe
and I just picked it up and threw it out.
Mr. Kennedy. If you didn't know this man very well, why would
you have taken $350 out of your own pocket and put it in ?
Mr. RuHL. I am not saying that I did take it out of my pocket. I
am pretty sure that he paid it.
Mr. Kennedy, You were pretty sure last night that you had paid it.
Mr. RuHL. I said that I might have.
Mr. Kennedy. Weren't you pretty sure about that last night, IMr.
Ruhl, when you were talking in the hallway with me, that this $350
had nothing to do with it ? Isn't that true ? And you said the $350
had nothing to do with Tom Maloney. Didn't you tell us that, Mr.
Ruhl?
Mr. Ruhl. I don't think so, and I think that I tried to tell you it
was interest.
Mr. Kennedy. You tried to tell us it was interest that was paid by
Mr. Maloney ?
Mr, Ruhl. Yes, sir.
Mr. Kennedy. Are you sure of that ?
Mr. Ruhl. I am sure of it.
Mr. Kennedy. Now, do you know that that $350 was paid by Tom
Maloney ?
Mr. Ruhl. I am sure it was, now,
Mr. Kennedy. You are sure you didn't put it in ?
Mr. Ruhl. I am sure of that.
Mr. Kennedy. You are surer now than you were 10 minutes ago
when you didn't know where it came from.
Mr. Ruhl. I am sure it came from INIaloney.
Mr. Kennedy. Now, he paid that interest in 1949, did he ?
Mr. Ruhl. December 8, 1949.
Mr. IvENNEDY. And you have on j^our books that this whole matter
was cleared up in 1948, and then he came back in 1949 and paid $350.
Mr. RuHi.. Everything was cleared up with the exception of that
interest in 1948.
Mr. Kennedy. Do you have anything in your books indicating you
were waiting for $350?
Mr. Ruhl. Wliatisit?
Mr. Kennedy. Do you have anything in your books or anything
in your records indicating that you expected $350 ?
Mr. Ruhl. No ; I haven't.
Mr. Kennedy. Doesn't it say that the whole transaction is ended
in 1948?
Mr. Ruhl. I don't think it says anything about when it ended.
Mr. Kennedy. Do you have anything that indicates that you ex-
pected $350 more ?
Mr. Ruhl. No ; I haven't.
IMPROPER ACTIVITIES EST THE LABOR FIELD 21
Mr. KIennedy. Did you also tell us that $1,500 was in some other
books when you were talking to us about it last night?
Mr. EuHL. Yes; I told you that $1,500 was in local 690-s books as
of the date of May 26, and I paid it back into the Temple Association
on November 24, 1948.
Mr. IvENNEDY. Did you tell us that you had misled us during the
evening about the $1,500?
Mr. RuHL. Did I what ?
Mr. Kennedy. That you had misled us about the $1,500.
Mr. RuHL. No ; I had the date wrong and I told you it was Novem-
ber 24, 1949, which it wasn't.
Mr. Kennedy. Maybe we could get all of these records in, Mr.
Chairman.
The Chairman. May I ask the witness a question or two ?
AVhen was the loan made to Mr. Maloney 'i
Mr. RuHL. Sometime in June of 1948.
The Chairman. Sometime in June of 1948 ?
Mr. RuHL. Yes, sir.
The Chairman. At that time, you took a deed to some property
to secure the loan ; is that correct ?
Mr. RuHL. Yes, sir.
The Chairman. How was the deed made out ; to whom ?
Mr. RuHL. The deed was made out to Thomas Maloney.
The Chairman. The deed was made out to Thomas Maloney. He
is the fellow borrowing the mone3^
Mr. RuHL. Yes, sir.
The Chairman. How would that give you security, a deed made
out to him ?
Mr. RuHi.. He couldn't sell the house until I got my money.
The Chairman. What I am trying to determine was this: You
loaned union money, did you ?
Mr. RuHL. Yes, sir.
The Chairman. Out of the union treasury ?
]\Ir. RuHL. Yes, sir.
The Chair:man. That is money that is received from members for
their dues.
Mr. RuHL. Yes, sir.
The Chairman. Legitimate union funds ; is that correct ?
Mr. RuHL. Yes, sir.
The Chairman. Now, whom, did you take the deed to when you
loaned him the money out of union funds ?
Mr. RuHL. The deed was in our safe at the building.
The Chairman. Well, whom was it made to ? When you deed prop-
erty, you deed it to someone. '\^niom did he deed the property to?
Mr. Ruhl. He just gave me the deed to his property.
The Chairman. I could hand you a deed to anything and it would
not be any security unless it was deeded to the man that I received
the money from.
Mr. Ruhl. That is the way it was. There wasn't anything made
out. I just held the deed to his house.
The Chairman. You just held the deed to his house and he did not
actually make a deed to secure this indebtedness, did he?
Mr. Ruhl. He just gave me that deed.
22 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. He just handed you a deed that he had on his home ;
is that all ?
Mr. RuHL. That is right.
The Chairman. But he made no deed or he gave you no instrument
of securing that loan except handing you his deed to liis own piece
of property ?
Mr. RuHL,. That is all, and he gave me that deed.
The Chairman. There was never any instrument recorded show-
ing that this loan was made out of the union funds and that he had
given security for it ?
Mr. RuHi.. No, sir.
The Chairman. There never was ?
Mr. Ruhl. No, sir.
The Chairman. Now, did your union members know that this loan
was made and did you report it to the union membership ?
Mr. Ruhl. To the building committee.
The Chairman. I am not talking about the committee. Did you
give any financial reporting to the members of your union that you
had loaned this money to start a beer joint and a gambling house out
of union funds ?
Mr. Ruhl. Just to the committee, the executive board.
The Chairman. The rank and file of the members never knew it?
Mr. Ruhl. The rank and file are not in the building association.
The Chairman. They are the ones who are paying the dues and
they have a little interest in it.
Mr. Ruhl. That is right.
The Chairman. It was their money that you loaned, the money
you were holding as trustee for the dues-paying members of the or-
ganization.
Mr. Ruhl. That is right.
The Chairman. And those who had paid the dues, except the com-
mittee, never knew that their money was being used to start a beer
joint and a gambling house, did they ?
Mr. Ruhl. I believe they did. I think on the yearly statement it
was read and I read it to them every year.
The Chairman. Are you sure of that ?
Mr. Ruhl. I am positive of it.
The Chairman. Do you have any record of it ?
Mr. Ruhl. I have the records there. It comes from the building
where I read everything.
The Chairman. Is that i-ecord lost or do you have it ?
Mr. Ruhl. I have the re<'ord here from 1948 on, everything that is
done in that building association.
The Chairman. Is there anything further ?
Senator Ives. Mr. Ruhl ; I would like to ask 3^ou a couple of ques-
tions and maybe more than that. Does the constitution or charter of
your union require that minutes be kept ?
Mr. Ruhl. Yes, sir.
Senator Ives. You keep all of these minutes and yet you are having
something here about which there w^ere no minutes, is that right?
Mr. Ruhl. I am saying that I just talked it over with four members
of the board ; yes.
IMPROPER ACTIVITIES EST THE LABOR FIELD 23
Senator I^^s. You were violating your charter, were you not, your
constitution in doing that ?
Mr. RuHL. I didn't keep the minutes and I don't know why they
weren't done.
Senator Ivj:s. No minutes were kept ?
Mr. RuiiL. That is right.
Senator Ives. Another thing I want to ask you is this : Does your
constitution and charter restrict the investment of union moneys?
Mr.RuiiL. Does it?
Senator Ives. Does it.
Mr. RuHL. No, sir.
Senator Ives. It does not say anything about the use of your union
moneys at all ?
Mr.RuHL. What is it?
Senator Ives. It does not indicate in any way, shape, or manner how
the union money shall be kept, and what shall be done with it?
Mr. RuHL. It says to be put into a bank, yes, and records kept.
Senator Ives. You have to put them somewhere but there is no
restrictions there and you can do what you want to with them ?
Mr. RmiL. There isn't any restriction of what you can do with the
money.
Senator Ives. That is a funny charter. What is the temple asso-
ciation you mention ?
Mr. RuHL. The temple association was organized when I built the
building. It is called the Union Teamsters Temple Association and
we donated money from local 690 to build the building. Besides that,
I borrowed some money.
Senator Ives. That vras authorized, I take it, by the union itself and
the union members, is that right ?
Mr. RunL. That was in a meeting and we couldn't build a building
without taking it up with them.
Senator Ives. You just loaned $3,900 that you are talking about
without taking it up with them.
Mr. RuHL. I just took it up with the board, that is all.
Senator I^ es. Thank you very much.
Senator ]\Iundt. I have one other question. A^Hien Mr. Maloney
first came to you and said, "I would like to have $3,900," you said you
turned him down first, is that right ?
Mr. RuHL. The first time I think so.
Senator Mundt. I would like to know wlty he came to you in the
first instance and what he said to try to persuade you to loan it to him
before you turned him down. Why did he come to you instead of to
a bank ?
iVfr. RuiiL. I don't presume he coidd have gotten it from a bank, he
wasn't acquainted in Spokane and I think I was about the only one
he knew in Spokane.
Senator Mundt. You were the only man he knew in Spokane ?
Mr. RuiiL. I think I Avas about the only one he Imew.
Senator Mundt. Did you know him pretty intimately or pretty
well ?
Mr. RuHL. I had known him for about 2 years by tliat time.
Senator Mundt. You had frequent contact with him and close asso-
ciation ?
24 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. RuHL. Quite a few and he came over to Seattle off and on, and
he always saw nie.
Senator Mundt. Did he offer to give you security the first time he
approached you for the loan ?
Mr. RuHL. I think he told me he would let me have that deed to
the house.
Senator Mundt. Of course, holding a deed to the house is like hold-
ing a stone. That is not any good. He can get a good deed. Did he
give you any note of any kind ?
Mr. EuHL. He had a signed note.
Senator Mundt. Did you have it on the mortgage ?
Mr. RuHL. No, sir.
Senator ISIundt. You had his sig-nature, plus a piece of paper that
he could reproduce with any attorney for $10.
Mr. RuHL. I just had the deed, and the note.
Senator Goldwater. Might I pursue this one point before you get
off it?
Mr. Ruhl, what is your capacity with your local ?
Mr. Ruhl. I am secretary-treasurer.
Senator Goldwater. What was the number of the local ?
Mr. Ruhl. 690.
Senator Goldwater, Could you tell us what the assets or worth of
the local was at the time this transaction took place ?
Mr. Ruhl. What the assets of our local were ?
Senator Goldwater. Yes.
^Ir. Ruhl. I think that we had in the neighborhood of probably
one hundred to two hundred thousands dollai-s.
Senator Goldwater. One hundred to two hundred thousand dollars.
How much did you have in this temple building association ?
Mr. Ruhl. I think that building association has always been up
to about fifty or sixty thousand dollars.
Senator Goldwater. How do you transfer funds from the general
fund of the local to the temple building association? Is that done
by a vote of the local membership?
Mr. Ruhl. All the money is donated to the building association
from local 690.
Senator Goldwater. But is it done by vote of the membership?
Mr, Ruhl. It comes by vote of the executive board.
Senator Goldwater. How many men are on the executive board?
Mr. Ruhl. Seven.
Senator Goldwater. Would it be possible for the entire assets of
the local to be transferred to the building association without the
members knowing about it ?
Mr. Ruhl. I don't think so.
Senator Goldwater. Well, if seven men can do it — ^how many mem-
bers do you have in the association ?
Mr. Ruhl, Probably about 3,000 now.
Senator Goldwater. Seven men could in effect transfer the total
assets of that local into the building association, is that correct?
Mr. Ruhl. The executive board has power to act between meetings ;
yes, sir.
Senator Goldwater. Does your constitution give that power to the
executive committee ?
Mr. RuiiL, Yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 25
Senator Goldwater. Could you transfer this money to a political
campaign ?
Mr. RuiiL. No, sir.
Senator Goldwater. But you can transfer any sums that you want
to from the general fund into the temple association ?
:Mr. RuiiL^ Yes. In 1956 we added another story to it. I just trans-
ferred another $50,000 to the temple association, to build the second
story. 1 think tlie temple association was down to around about
$39,()00, and from what investigation we made the building was
going to cost around 60. We had a meeting on that and transferred
$50,000 from teamsters local funds to the building association.
Senator Goldw^vter. Who administers the temple association?
Mr. RuHL. I do.
Senator Goldwater. And other members ?
Mr. RunL. The executive board.
Senator Goldwater. The same executive board of the union, of the
local ?
My. Rtthl. No. There are 3 members of the union's executive board
and 4 others elected.
Senator Goldwater. They are elected by the membership at large?
Mr. RuHL. Of the temple association ; yes.
Senator Goldwater. But the executive board of the temple asso-
ciation is not the same as the executive board of the local?
Mr. RuHL. ^Miatisit?
Senator Goldwater. The executive board of the temple association
is not the same as the executive board of the local ?
Mr. RmiL. Only 3 members of it.
Senator Goldwater. "Wliat control does your constitution give the
general membership over the decisions of this executive board of the
temple association ?
]\Ir. RuHL. I think that the bylaws state that the executive board
shall have power to act between meetings.
Senator Goldwater. One more question. Since you have held this
office of secretary and treasurer, have there been any contributions
made to political parties by either the temple association or the local
itself?
Mr. RuHL. No, sir.
Senator Goldwater. No contributions to political parties?
Mr. RuHL. No, sir.
Senator Goldwater. That is all I have.
The Chairman. ]\Ir. Counsel, do you expect now to go into some
records ?
Mr. Kennedy. Yes, sir ; I do.
The Chairman. Mr. Adlerman of the staff is going to assist in the
presentation ?
Mr. Kennedy. Yes, sir.
(Membei-s present at this point: The chairman. Senators Ives,
Kennedy, Ervin, McNamara, Mundt, and Goldwater.)
The Chairman. Mr. Adlerman, would you be sworn, please?
You do solemnly swear that the evidence you shall give before
this Select Senate Committee shall be the truth, the whole truth, and
nothing but the truth, so help you God ?
Mr. Adlerman. I do.
26 IMPROPER ACTIVITIES IN THE LABOR FIELD
TESTIMONY OF JEEOME ADLERMAN
The Chairman. State your name, your place of residence, and your
present employment.
Mr. Adleeman. My name is Jerome Adlerman. I reside in Arling-
ton, Va. I am assistant counsel to the Senate Select Committee.
The Chairman. You have been on the staff for quite a long time
of the Senate Permanent Investigating Subcommittee ?
Mr. Adlerman. Yes, sir.
The Chairman. You have been assisting in the investigation of the
matter before the committee today ?
Mr. Adlerman. That is right.
The Chairman. You have certain records before you. Are they
photostatic copies of records ?
Mr. Adlerman. I do, sir.
The Chairman. Mr. Counsel, you may proceed, and Mr. Adlerman
may assist you in presenting records.
Mr. Kennedy. Mr. Adlerman, do you have some records here that
you can show Mr. Ruhl which indicates the loan made and the date
of the loan ?
Mr. Adlerman. I do, sir.
The Chairman. As you present a record to the witness, will you
identify the record and state exactly what it is ?
Mr. Adlerman. All right. I have a record here, a ledger sheet,
I believe, or a journal sheet, which has a No. 99 typed in the very
left-hand corner, and it is entitled "Teamsters Union Temple Asso-
ciation, July 1948." It contains several items, a list of several items
of account, and under the date of July 24, 1948, there is an entry
"Tom Maloney, Sports Center,'' and then there is a hgure 656, which
probably is a check or a number of the check, I imagine. I don't
know. And then a credit of $3,900.
The Chairman. Is that a photostatic copy of a ledger sheet ?
Mr. Adlerman. This is a photostatic copy.
The Chairman. It may be presented to the witness and identified.
(Document handed to witness.)
The Chairman. Will the witness identify that photostatic copy
as accurate with respect to the records ?
Mr. KuHL. Yes, sir.
The Chairman. That is, the records you have been testifying about ?
Mr. Ruhl. Yes, sir.
The Chairman. That photostatic copy will be made exhibit No. 1.
(The document referred to was marked "Exhibit No. 1" for ref-
erence and will be found in the appendix on p. 347.)
Mr. Kennedy. ^Mr. Adlerman, do j'ou have the journal sheet show-
ing the repayment of the loan ?
Mr. Adlerman. Yes. I have a journal sheet entitled "Teamsters
Union Temple Association; name, Tom Maloney; address, Sports
Center," and the date, 1948, July 24, folio 99, showing a debit of
$3,900, and a balance showing $3,900.
On September 29, 1948, folio 101 shows a credit of $1,500. October
31, folio No. 102 shows a credit of $1,000. November 24, folio 103
shows a credit of $1,500. Alongside and just beneath that $1,500,
where the balance figures are contained, are two drawn lines, which
IMPROPER ACTIVITIES EST THE LABOR FIELD 27
indicate that the account probably was closed. Underneath that, or just
below that, are two check marks where the dates are set forth, leaving
the dates blank, and folio 103 showing a debit of $100.
The Chaieman. Does the witness lluhl identify that document as a
photostatic copy of the original records ?
(Document handed to witness.)
Mr. RuHL. Yes, sir.
The Chairman. It may be made exhibit No. 2.
(The document referred to was marked "Exhibit No. 2" for ref-
erence and will be found in the appendix on p. 348.)
Mr. Kennedy. I want to ask a question about that.
Evidently Mr. Maloney paid $4,000 back and he should only have
paid $3,900?
Mr. RuHL. A^^ien Sloniger went down to get the books from this
bookkeeper, he stated this $100 was interest.
Mr. Kennedy. Then why did you give him credit for the $100?
Mr. RuHL. I don't keep these books. I don't know why it is there.
Mr. Kennedy. Let me ask you again.
Mr. RuHL. There may be an error.
Mr. Kennedy. If that $100 is not a credit, what is the $350 in your
other books?
Mr. RuHL. That is what I think is the interest.
Mr. Kennedy. Wait a minute. That is $100 there plus $350 in the
other books. That is $450 interest he paid.
Mr. RuHL. Right, if this $100 is interest.
Mr. Kennedy. But what was the provision? You said he was sup-
posed to pay $350. Did he pay $450 interest?
Mr. RuHL. Well, I don't think so. But I also can't account for this
$100 on the books here.
Mr. Kennedy. Does that not appear in the books, that that $100 was
repaid to Tom Maloney ?
Mr. RuHL. He has it down here as a debit.
Yes, paid to Maloney.
Mr. Kennedy. "Why would you repay $100 if he wanted $350 inter-
est?
Mr. RuHL. I can't answer that.
Mr. Kennedy. I don't want to labor this matter, but last night we
had a rather frank discussion about why you had told us this story
originally. You will remember you talked about $1,500 that appeared
in another book and you told us that that $1,500 was part of the
repayment.
Do you remember telling us that ?
Mr.'RuHL. Right.
Mr. Kennedy. Then you told us that that was a lie, that you had
talked to us falsely.
Do you remember that?
Mr. RuiiL. No. I don't think so. I think you fellows were trying
to make me tell that that wasn't a payment on the building.
Mr. Kennedy. All right, Mr. Ruhl.
Did you also discuss the fact, and we do not have to get into names,
that there was a girl and a man that worked for the teamsters that
had embezzled some of your funds ?
89330 — 57 — pt. 1 -3
28 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. EuHL. Yes, sir.
Mr. IvEXNEDY. And that j'ou had kept that from the membership
and from the members of the board, is that right ?
Mr. RuiiL. I think there is four members of the board that knows
it. She signed an affidavit and I think four members have a copy
of that affidavit, including myself.
Mr. Kennedy. Did you tell us last night that only you and the
girl knew about it ?
Mr. RuHL. I think I mentioned that.
Mr. Kennedy. It is a little confusing to try to keep up with it,
Mr. Ruhl.
Mr. RuiiL. I know, but some of these things are way back.
Mr. Kennedy. Then you told us the $1,500 in 1949 that appeared
in the books of local 690 had been for Tom Maloney repaying the
debt. Then we asked you why it was written off in 1948 and then
you said that $1,500 had something to do with this girl repaying
$5,000 that she stole.
Mr. RuiiL. Well, it doesn't have anything to do with it. It has
to do with the payment on Maloney.
Mr. Kennedy. That figure of $1,500 appears in 1949 in local 690,
and that book is closed in 1948.
Mr. Rfiil, It shows in 1948. Last night I told you 1949, but it
shows 1948 on the books.
Mr. Kennedy. Why did you bring up the fact that the girl had
stolen the $5,000 if it didn't have something to do with the $1,500
in the other books ?
Mr. RuHL. Well, there is such a case, and it is on these books.
Not on these books, but on those folios that I brought from the Tem-
ple Association. It states that.
Mr. Kennedy. You did not tell Mr. Calabrese and myself in the
hall that you had made this whole story up ?
Mr. RuHL. No, I didn't tell you that.
Mr. Kennedy. You did not say anything about that?
Mr. RuTiL. I told you she was involved with the business agent
and the money disappeared. At the time that came up, we bought
a cash register, a National Cash Register bookkeeping machine, and
I asked her to get the book ready, and that is when I was going to
get the auditor, the same man who kept the books for the Temple
Association, to audit the books for the union. I said "You have
the books ready."
Mr. Kennedy. How long have you been in the union ?
Mr.RuiiL. Havel?
Mr. Kennedy. Yes.
Mr. RuiTi.. Ever since World War 1, 1919.
Mr. Kennedy. And you are to be retired in about a year and a half,
or you can get your retirement in a year and a half ?
Mr. RuiiL. The balance of this year and next year.
Mr. Kennedy. Did you mention anything to us about any fear
that you might have on the testimony that you would give before
the committee ?
Mr. RuHL. Did I what?
Mr. Kennedy. Mention any fear that you might have from Mr.
Dave Beck or Mr. Frank Brewster regarding the testimony that you
were going to give before this committee?
IMPROPER ACTIVITIES IN THE LABOR FIELD 29
Mr. RuHL. I think I mentioned it. You asked me if they could
do anything, and I said probably Mr. Beck could, yes.
Mr. Kenxedy. I am not going to go again into detail of that, Mr.
Ruhl, but you have been less than frank about our conversation.
The Chaieman, Let me ask you now : Do you have any fear that
if you testify- here truthfully that some reprisals may be invoked
against you ?
Mr. Ruhl. Do I have any fear now? No, I don't have any fear
riglitnow.
The Chairman. You think you are well protected as long as you
are in the presence of the committee. How about when you get out
of the presence of the committee ? Do you have any fear about that ?
Mr, Ruhl. No, I don't think I have any exactly fear. I would
hate to lose my job when I am so close to retirement.
The Chairman. So there is the possibility, then, in your own mind,
that your testimony here, if you testify truthfully and factually, that
you may have to in some way suffer for doing so ?
Mr. Ruhl. I may.
The Chairman.^ You do entertain such a fear? Just be honest.
Yes or no.
Mr. Ruhl. Well, I will sav "Yes."
The Chairman. All right. Let us proceed.
Mr. Kennedy. Let me ask you this: The records show that the
loan was repaid in 1948.
Mr. Ruhl. Right.
Mr. Kennedy. Was the loan repaid in 1948 ?
Mr. Ruhl. Yes.
Mr. Kennedy. You know that to be a fact ?
Mr. Ruhl. Yes.
Mr. Kennedy. You told us also that you had spoken to Mr. JPraiik
Brewster about the fact that the loan had not been repaid or some
part of it had not been repaid ?
Mr. Ruhl. I think that was the $350.
Mr. Kennedy. $350 that you thought earlier, when we talked to you,
you might have given out of your own pocket ? . '
Mr. Ruhl. I thought maybe I might have, yes.
Mr. Kennedy. ( 'an we go on to two otlier loans that the union has
made ?
The Chairman. You may proceed.
Mr. Kennedy. How many loans has the union made altogether ?
Mr. Ruhl. It made one to this girl, one to Sam Sellinas.
Mr. Kennedy. In point of time, just through the wliole period of
time, how many loans have you made ? You made a loan to the girl,
you made a loan to Tom Maloney, and you made two other loans ?
Mr. Ruhl. Four loans.
Mr. Kennedy. Would you discuss those two loans with us ? First,
on the loan to Mr. Richard Klinge. Will you tell us what happened
on that?
Mr. Ruhl. I don't remember the date of it.
Mr. Kennedy. Did Mr. Richard Klinge speak to j^ou ?
Mr. Ruhl. He called me on the phone and asked me if he could
borrow $30,000 from our local union.
Mr. Kennedy. What did he want to do with that $30,000 ?
Mr. Ruhl. He didn't state to me.
30 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. Did you understand that he wanted to open a tavern
in Seattle ?
Mr. RuHL. No, I didn't.
Mr. Kennedy. Did you ever find that out ?
Mr. RuHL. I know he has a tavern, but I didn't know.
Mr. Kennedy. The Rainbow Tavern ?
Mr. RuHL. What?
Mr. Kennedy. The Rainbow Tavern?
Mr. RuiiL. I never knew the name of it, no, sir.
Mr. Kennedy. Did you know that Mr. Richard Klinge was a class-
mate of Mr. Dave Beck, Jr., at the University of Washington, in
Seattle ?
Mr. RuHL. No, I did not.
Mr. Kennedy. Did you know that they were very close friends ?
Mr. RuHL. I couldn't say that I did.
Mr. Kennedy. Do you know that ]\Ir. Richard Klinge has one of
the homes in the housing development of Mr. David Beck ?
Mr. RuHL. No, I don't.
Mr. Kennedy. When Mr. Richard Klinge asked you to make the
loan of $30,000, what did you tell him ?
Mr. RuHL. I told him no, that I wouldn't.
Mr. Kennedy. Did you make the loan of $30,000 to Mr. Richard
Klinge or anyone for Mr. Richard Klinge ?
Mr. RuHL. He called up a couple of days later and asked me if I
would loan it to Sam Bassett.
Mr. Kennedy. "Who is Sam Bassett ?
Mr. RuHL. He is attorney for the teamsters union throughout the
State of Washington.
Mr. Kennedy. The attorney for the teamsters ?
Mr. RuHL. The teamsters unions of the State of Washington.
Mr. Kennedy. Did you make that loan ?
Mr. RuHL. I made it to Sam Bassett, yes, sir.
Mr. Kennedy. $30,000?
Mr. RuHL. Yes, sir.
Mr. Kennedy. Why did you make it to Mr. Bassett ?
Mr.RuHL. Wliy?
Mr. Kennedy. Yes.
Mr. RunL. He asked me if I would loan it to Sam Bassett. I have
known Sam Bassett well enough that I could trust him. I called him
up and asked him if he was going to be responsible and he said yes,
sir, that he would give me a note.
Mr. Kennfj^y. Did he tell you that Mr. Dave Beck was interested
in it?
Mr. RuHL. He did not.
Mr. Kennedy. He did not mention Dave Beck at all ?
Mr. RuHL. No, sir.
Mr. Kennedy. And you loaned the $30,000 to Sam Bassett ?
Mr. RuHL. Yes, sir.
Mr. Kennedy. What rate of interest did you get for that loan of
$30,000?
Mr. RuHL. Three percent.
Mr. Kennedy. And that was approved, was it, by the executive
board ?
Mr. RuHL. Yes, sir.
IMPROPER ACTIVITIES EST THE LABOR FIELD 31
Mr. Kennedy. Do you have any minutes of the executive board
showing that that loan was approved ?
Mr. RuHL. I have not.
Mr. Kennedy. Do you know why that does not appear in the min-
utes of the executive boards ?
Mr. RuHL. Well, that book was so far back it isn't available. It
isn't around.
Mr. Ivennedy. This is 1950. This is after the loan to Tom Maloney.
Those books are available.
Mr. RuHL. I have a minute book from 1950, yes, sir.
Mr. Ivennedy. This loan was made in June of 1950. Could you tell
us why that does not appear in the minute book of June 1950 ?
Mr. RuiiL. No, I can't. Only that I took it up with the members.
I think that would be the last deal in that last book.
Mr. Kennedy. And you say you took it up with the members?
Mr. RuHL. No. With the executive board again.
Mr. Kennedy. And they said that it was permissible to make a loan
to the lawyer of the teamsters in the State of Wasliington, $30,000
at 3 percent interest ?
Mr. RuHL. Yes ,sir.
Mr. Kennedy. Did you understand, then, that the money was used
to buy a tavern for Mr. Klinge ?
Mr. RtjHL. No I didn't,
Mr. Kennedy. The Rainbow Tavern ?
Mr. RuHL. No, I didn't.
Mr. KJENNEDY. Would you tell us whether that money has been
repaid ?
Mr. RuHL. He owes a balance of $18,200.
Mr. Kennedy. Mr. Chairman, could we put the documents in the
record regarding this loan and the dates that it was repaid ?
The Chairman. All right.
Mr. Adlerman, do you have the records before you ?
Mr. Adlerman. I have certain records, sir.
The Chairman. You have certain records before you pertaining to
this loan ?
Mr. Adlerman. I do.
The Chairman. Are they photostatic copies ?
Mr. Adlerman. They are.
The Chairman. You may proceed to identify them.
Witness Ruhl, you follow the testimony being given now by Mr. •
Adlerman so that you can verify it, or refute it.
Mr. Adlerman, I hold in my hand a note, a demand note, of $30,000,
dated at Seattle, May 25, 1950 :
On demand I promise to pay the Teamsters and Chauffeurs Union Local 690,
<30,000—
et cetera —
at 3 percent interest.
I do not want to read the whole note. It will take too much time.
The Chairman. Is that the note which has been discussed here, a
photostatic copy of it ?
Mr. Adlerman. That is right.
The Chairman. Mr. Ruhl, do you agree ?
Mr. Ruhl, do you agree that that is a photostatic copy of the note ?
32 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. E,uHL. Yes, sir.
The Cpiairman. That note will be made exhibit No. 3.
(The document referred to was marked "Exhibit No. 3" for refer-
ence and will be found in the appendix on p. 349.)
Mr. Adlerman. It was signed by Sam Bassett and due on demand at
Seattle, Wash. It bears an endorsement
Received $5,000 September 14, 1951, on account, Teamsters and Chauffeurs Union,
I-ocal 690.
Senator Gold water. Mr. Chairman ?
The Chairman. Senator Goldwater ?
Senator Goldwater. Before that is completed, I want to get some-
thing straight in my mind.
Do I understand that the money was loaned from the Temple As-
sociation fund ?
Mr. RuHL. This one we are talking about now ?
Senator Goldwater. Yes.
Mr. EuHL. This is a teamsters loan.
Senator Goldwater. This is a loan of $30,000 from the local funds,
the general f mids ?
Mr. RuiiL. Local union 690, yes, sir.
Senator Goldwater. Again, can the local lend that money without
the authority of the membership as a whole ?
Mr. RuiiL. The executive board can.
Senator Goldwait:r. Your constitution provides that the executive
board can loan $30,000 or any amount out of the general fund without
consulting tlie members ?
Mr. RuHL. It doesn't say how much they can loan. It just says they
can loan. It says they can act between the meetings.
Senator Goldwater. So the $30,000 was loaned in this case from
the general fmid of the local only on the action of the executive
committee ?
Mr. RuHL. Right.
Senator Goldwater. That is all, Mr. Chairman.
The Chairman. All right, Mr. Counsel.
Mr. Adlerman. I hold in my hand a check dated IMay 24, 1950, to
the order of Sam Bassett for $30,000, signed by the Teamsters and
Chauffeurs Union, Local 690. The signatures are Mr. Whitney, J. E.
Whitney, and A. J. Ruhl. Tlie endorsement is Sam Bassett.
The Chairman. Mr. Ruhl, do you identify that check, a photostatic
copy of it ?
Mr. Ruhl. Yes, sir.
The Chairman. It may be made exhibit No. 4.
(The document referred to was marked "Exhibit No. 4" for ref-
erence and will be found in the appendix on p. 350.)
Mr. Adlerman. I have a bookeeping machine cash account which
shows, under remarks. May 24, 1950, check No. 576, and the amount
of the ledger accounts $30,000, and the balance is $30,000, and several
payments made thereunder, to include February 8, 1955, when it
shows a payment of $400, and a balance of $19,100. Since that time,
there were two other payments of $400 and $500, the last on February
8, 1956.
The Chairman. Do j^ou identify that document, Mr. Ruhl ?
Mr. Ruhl. Yes, sir.
IMPROPER ACTWITIES IN THE LABOR FIELD 33
The CiTAiRMAis'. It will be made exhibit No. 5.
(The document referred to was marked "Exhibit No. 5" for refer-
ence and will be found in the appendix on pp. 351-352.)
The Cttatrmak. At tliis point, Mr. Ruhl, I wish to ask you a
question. Who has made tlie payments to you ?
Mr. Ruhl. Sam Bassett.
The CiiAiRMAX. They have all come through Sam Bassett ?
]Mr. RuiiL. Yes, sir.
The Chairman. Proceed.
Mr. Adlerman. I hold in my hand a letter under the letterhead of
Bassett, Geisness and Vance, Seattle, Wash., dated February 5, 1957,
addressed to Mr. Ab Ruhl, secretary of the Teamsters Union, Local
690. It says :
In re my promissory note.
Dear Ab : Richard Klinge has delivered to me a bank check in the amount
of $21,000 in payment of the balance due of principal and interest on his promis-
sory note.
If local 690 will acept this amount in full settlement of the balance now due
the union on my note, both principal and interest, I will accept Klinge's check
and deliver to you forthwith my check in the amount of $21,000. Please advise
me at your earliest convenience.
This is dated a couple of weeks ago, February 5, 1957.
The Chairmax. That is a letter from whom ?
Mr. Ajdlermax. From Mr. Bassett.
The Chairman. To whom ?
Mr. Adlerman. To Mr. Ruhl.
The Chairman. Dated when ?
Mr. Adlerman. February 5, 1947.
The Chairman. That is since this investigation started?
Mr. Adlerman. That is right sir.
The Chairman. It refers there to whom the money really was
loaned to ?
Mr. Adlerman. That is the indication.
The Chairman. Mr. Ruhl, I would like to ask you a question. Did
you know at all times that that money was borrowed for Mr. Klinge ?
Mr. Ruhl. For Mr. Klinge ?
The Chairman. Yes.
Mr. Ruhl. Mr. Klinge was the one who originally called me up and
I turned him down.
The Chairman. You knew at the time the loan was made to Mr.
Bassett that the purpose of the loan was to get the money to Klinge for
his use, did you not ?
Mr. Ruhl. Yes, sir.
The Chairman. You knew that, sir ?
Mr. Ruhl. Yes, sir.
The Chairman. Proceed.
Mr. Ivennedt. I might say in that connection, Mr. Chairman, we
have questioned Mr. Bassett about this loan and he has stated that he
took the $30,000 on orders of Mr. Dave Beck.
The Chairman. We have that confirmation ?
Mr. Kennedy. It is being sent in. We have not received it yet. I
mention it since we are discussing this matter.
The Chairman. Mr. Bassett is the attorney for the union, and still
is. As I recall it, he appeared before the Investigating Subcommittee
representing Mr. Brewster, did he not ?
34 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. That is correct.
The Chairman. Do you know the attorney that appeared for Mr.
Brewster when he was before the Investigating Subcommittee, Mr.
Bassett ?
Mr. RuHL. It is the same Mr. Bassett.
The Chairman. That is the same Mr. Bassett?
Mr. RuHL. Yes, sir.
The Chairman. All right.
We should have an affidavit. When that affidavit is received, the
Chair would like to have it made a part of the record. The original
affidavit will be inserted into the record, when received.
The Chairman. Senator Mundt ?
Senator Mundt. Mr. Ruhl, I want you to straighten out my arith-
metic. I do not think I have followed it clearly. I think I understood
that there was a balance due on the note to Mr. Bassett of $18,100.
Is that right?
Mr. Ruhl. $18,200.
The Chairman. May the Chair interrupt just a moment?
Senator Mundt. Yes.
The Chairman. The letter that has just been testified to, dated
February 5, 1957, from Mr. Bassett to Mr. Ruhl, will be made exhibit
No. 6.
(The document referred to was marked "Exhibit No. 6" for refer-
ence and will be found in the appendix on p. 353.)
Senator Mundt. Mr. Ruhl, in that letter, how much did Mr. Bas-
sett oifer to pay in order to complete the payment on the loan ?
Mr. Adlerman. He offers to compromise the outstanding indebted-
ness for $21,000.
Senator Mundt. $2,100 or $21,000?
Mr. Adlerman. $21,000.
Senator Mundt. He offers to settle the $18,200 loan for $21,000?
Mr. Ruhl. Yes, sir.
Senator Mundt. Why is there that discrepancy in amount? Is
that the interest?
Mr. Ruhl. The interest, I presume. It figures out that there would
be $2,800 interest.
Senator Mundt. The interest figures out at $21,800?
Mr. Ruhl. $2,800.
Senator Mundt. The interest?
Mr. Ruhl. If I got the check for $21,000 ; yes.
Senator Mundt. What I am trying to figure out is : Is this an offer
to compromise the loan or an offer to pay it in full?
Mr. Ruhl. It is an offer to settle it in full with just a little less
interest than the 3 percent.
Senator Mundt. About how much less would that be ?
Mr. Ruhl. I thinl<: it would probably figure out about 2 percent
interest.
Senator Mundt. About how much?
Mr. Ruhl. I think it would figure out about 2 percent.
Senator Mundt. Two percent. Have you responded to that letter
of February 5?
Mr. Ruhl,. Have I responded? Yes, sir.
Senator Mundt. Did you say yes or did you say no?
Mr. Ruhl. Well, he has the letter.
IMPROPER ACTIVITIES IN THE LABOR FIELD 35
Senator Mundt. All right.
Mr. Adlerman. I have in my hand, Senator, two letters, one dated
February 6, 1957, in which Mr. Ruhl writes to Mr. Bassett stating
that he would take the matter up at the next executive meeting, and
he would notify him whether or not the $21,000 would be acceptable.
The Chairman. Do you recognize the photostatic copy of that
letter, Mr. Ruhl ?
Mr. Ruhl. Yes, sir.
The Chairman. Is that correct?
Mr. Ruhl. Yes, sir.
The Chairman. It will be made exhibit No. 7.
(The document referred to was marked "Exhibit No. 7" for refer-
ence and will be found in the appendix on p. 354.)
Mr. Adlerman. The next exhibit is dated February 13, 1957, in
which Mr. Ruhl writes to Mr. Bassett, referring to his letter of
February 5 :
Took the matter regarding your note due to this local union up with the execu-
tive board last night at our regular meeting. They have agreed we will accept
the check for $21,000, which covers a balance due on the note plus the interest
in full. So if vou will send the check to me, I will forward your note paid in full.
Signed "Ruhl."
The Chairman. What is the date of that letter ?
Mr. Adlerman. February 13, 1957.
The Chairman. Do you acknowledge that letter as a correct photo-
static copy of the original, JNIr. Ruhl ?
Mr. Ruhl. Yes, sir.
The Chairman. That will be made exhibit No. 8.
(The document referred to was marked "Exhibit No. 8" for refer-
ence and will be found in the appendix on p. 355.)
Senator Mundt. Mr. Ruhl, what induced you and the board mem-
bers to accept 2 percent interest when you were entitled to 3 ?
Mr. Ruhl. It didn't induce me. I wouldn't accept it until I took it
up with the executive board.
Senator Mundt. That is right. But you do have a vote on that
board ?
Mr. Ruhl. Yes. sir.
Senator Mundt. Did you vote in favor of it ?
Mr. Ruhl. Did I?
Senator Mundt. Yes.
Mr. Ruhl. Yes.
Senator Mundt. "W^iat induced you, because you voted in favor of it ?
You are the only witness we have here this morning.
Mr. Ruhl. To get it cleared up.
Senator Mundt. What was that ?
Mr. Ruhl. To get it cleared up. It had been long enough.
Senator Mundt. Did you consider it a bad loan at that time, that
you had to make a discount to get the money ?
Mr. Ruhl. No ; I don't say that, but I think it had run long enough
and it should be cleared up.
Senator Mundt. Did you consider it a delinquent loan ?
Mr. Ruhl. No; I didn't consider it a delinquent loan, because the
note didn't specify any time.
Senator Mundt. Lenders do not ordinarily discount loans which are
good loans, wliich are in good standing and which are not delinquent.
36 mPROPER ACTIVITIES IN THE LABOR FIELD
You were entitled to 3 percent, wliicli, in itself, was a pretty cheap in-
terest rate for that kind of a loan. I am wondering Avhy you decided
to take 2 percent.
Mr. KcriL. I just stated that I took it up with the board and they said
take the money and settle it.
Senator Mukdi'. I am asking you why you, Mr. Euhl, voted in
favor of it, why you, yourself, voted to deprive your union of that other
1 percent to which it was entitled.
Mr. Ivunr.. I onl}? have one vote. I went along with all of them.
There are seven members on that board.
Senator Mijndt. Ever}' member there had one vote. Each man had
to make up his mind. It was either a question of putting this 1 percent
in the pocket of Mr. Bassett or Mr. Klinge or the man who paid the dues
to the union. There are o people to get the benefit of the 1 percent.
I am wondering why, as custodian of union funds, you voted to put
it in the pocket of Mr. Bassett or ]\Ir. Klinge.
Mr. RiTHL. That is right ; somebody would get it.
Senator Mundt. Somebody would get it. If you were to tell me,
"I thought this was a bad loan and I thought he should get it paid
up," I would understand that; and if you told me he was a delinquent
and you wanted to get it off the books, I would understand that. But
if it is a good loan, I caiinot understand why you would take 1 per-
cent interest out of the pocket of the unionmen and put it in the hands
of Mr. Bassett.
Mr. RuiiL. I stated that the board thought it had been long enough.
Senator Mundt. In other words, you thought it was a bad loan, a
delinquent loan, a slow loan ?
Mr. RuHL. I thought it was a little slow ; yes.
The Chairman. What was the great urgency about getting it set-
tled so quickly ?
Mr. RuiiL. There wasn't any. We just answered the letter.
The Chairman. I am sure this investigation had nothing to do
with it.
Mr. RuHL. Not on my part; no, sir.
The Chairman. You had not been offered the payment until this
investigation was well underway ; had you?
Mr. RuiiL. That is right.
The Chairman. So you decided to discount it and get it settled.
Mr. RuHL. February 5 is when I got the letter.
The Chairman. Did you thinlv by settling it that way, and getting
it disposed of, that it would not come to the attention of the com-
mittee ?
Mr. RuiiL. No ; I did not.
Senator Kennedy. What collateral did Mr. Bassett put up?
Mr. Ruhl. W^iat collateral ? Just the note.
Senator Kennedy. Wliat percentage of your resources did $30,000
involve at that time ?
Mr. Ruhl. I think at that time we had around two or three hun-
dred thousand dollars.
I am not saying exactly. I know counting that note in the team-
sters' union we had at the end of January $280,000 in our treasury.
Senator Mundt. How about the rest of this $200,000, Mr. Ruhl, the
$170,000 that Mr. Bassett did not borrow. How is that invested?
is that in interest-bearing money or is that just locked up ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 37
Mr. RuHL. What is that ?
Senator Mundt. The rest of the money in your fund, the money
that Mr. Bassett did not borrow, $170,000, which I understand was
still there after you made the loan to Mr. Bassett — is that right?
Mr. RuHL. $170,000?
Senator Mundt. Yes. Did you not say you had around $200,000
in the treasury ?
Mr. RuHL. Yes. In the treasury.
Senator Mundt. If he takes $30,000, that leaves $170,000 ; is that
correct ?
Mr. RuTiL. I am not sure of those figures.
Senator Mundt. Roughly. What happened to the rest of the
money ? Is it interest-bearing money or is it in bonds or in mothballs ?
Mr. RunL. I have at the present time $211,000 invested in Govern-
ment bonds.
Senator Mundt. That is what I am trying to find out. What hap-
pened to the rest of the money. May I ask, while I am on the sub-
ject, a little bit about the financial arrangements between Local 690
and the Temple Association, As I understand, the Temple Asso-
ciation is the creature of Local 690 ?
Mr. RuHL. That is right.
Senator ]\Iundt. Does the local occupy offices in the Temple Build-
ing?
Mr. Ruiir,. Yes.
Senator Mundt. Does it pay the Temple Association interest or
rent?
Mr. RuHT.. We pay them rent ; yes, sir.
Senator Mundt. You pay them monthly rent. Is it the regular
prevailing rent in that community ?
Mr. RuHL. I don't know whether it would be the regular going — it
isn't as much rent as you would pay if you had to go out and rent the
building. At the present time, for a long time, we have been pay-
ing $100 a month rent for the building.
Senator Ervin. Mr. Chairman, before we leave this phase, I would
like to ask a question.
The Chairman. Senator Ervin.
Senator Ervin. The result of the action of your executive board in
reducing this interest rate from 3 to 2 percent was to give away to
somebody $1,400 which, in equity and good conscience, belonged to
your union ; was it not ?
Mr. RuHL. Possibly it should be.
Senator Er\in. You stated that you did not keep the minutes. I
thought you said you were secretary-treasurer.
Mr. RuHL. Right.
Senator Ervin. Were you secretary-treasurer both of the local and
also of the Temple Association ?
Mr. RuHL. Yes, sir.
Senator Ervin. Were not those minutes supposed to be kept under
your supervision ?
Mr. RuHL. No. The recording secretary keeps the minutes.
Senator Erven. You have a recording secretary. In other words,
it is not your fiinction to supervise the keeping of the minutes?
Mr. RuiiL. No, sir.
38 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Ervin. That is all.
The Chaikman. Who supervises the recording secretary ?
Mr. RuHL. Who supervises ? The executive board.
The Chairman. The executive board. And you are on the execu-
tive board ?
Mr. RuHL. Yes, sir.
The Chairman. So you have a resi)onsibility to supervise it, do
you not ?
Mr. RuHL, I suppose so ; yes.
The Chairman. You know you do, do you not, if your statement
is correct ?
Mr. RuHL. My statement is correct. I suppose I would have that
responsibility.
Senator I\'es. Mr. Chairman ?
The Chairman. Senator Ives ?
Senator Ives. Mr. Ruhl, I would like to ask you a couple of ques-
tions. What is the real purpose of the building association ?
Mr. Ruhl. What is the real purpose of it ?
Senator I\^s. Yes.
Mr. Ruhl. The building was set up as a separate unit. It is a
corporation.
Senator Ives. For what purpose ?
Mr. Ruhi . Just to run the building.
Senator Ives. To rmi the building ?
Mr. Ruhl. So that it wouldn't be comiected with the union.
Senator Ives. You could have had it connected with the union,
could you not?
Mr. Ruhl. I presume you could, but I don't think they are usually
done that way.
Senator Ives. What are the funds used for other than the building
maintenance ? In other words, in the operation of the building asso-
ciation, what are these funds used for that you are accumulating ?
Mr. Ruhl. That is all they are used for.
Senator Ives. Apparently you are not spending them all. You
have something over $200,000 at the present time invested in Govern-
ment bonds, you say.
Mr. Ruhl. No. That money is teamsters' local 690.
Senator Ives. That is in the union treasury ?
Mr. Ruhl. There is at the present time $57,000 in the Temple
Association.
Senator Ives. Do you get any remuneration for acting in the ca-
pacity of secretary-treasurer of local 690 ?
Mr. Ruhl. I get paid by local 690 ; yes.
Senator Ives. Are you willing to tell us what you get paid?
Mr. Ruhl. I get $190 a week plus $3 a day expense allowance.
Senator Ives. Three dollars a day. That is rather moderate. Are
you paid also to serve in your capacity on the board in connection
with the Temple ?
Mr. Ruhl. No, sir.
Senator Ives. You get no remuneration of any kind for that?
Mr. Ruhl. There is nobody gets a salary on the Temple Association.
Senator Ives. Thank you very much.
Senator McNamara. Mr. Chairman, I have a few questions if you
want them at this time.
IMPROPER ACTIVITIES IN THE LABOR FIELD 39
The Chairman. All ri<?lit, Senator.
Senator McNamara. Are you an elected officer?
Mr. RuBTL. Yes, sir.
Senator McNamara. Are you bonded ?
Mr. RuHL. Yes, sir.
Senator McNamara. How lon^? is your term of office ?
Mr. RuHL,. Five years.
Senator McNamara. Five years. You have been elected continu-
ously over this long period of time that you mentioned ?
Mr. RuHL. It hasn't always been five. When I first came it was
from year to year and then it went to 3 and then it went to 5.
Senator McNamara. Has your term been continuous ?
Mr. RuHL. I have been continuously employed.
Senator McNamara. And you are elected by the rank and file, not
by the executive committee ?
Mr. RuHL. By the rank and file ; yes, sir.
Senator McNamara. You indicated that these funds are invested
in other ways than the manner brought out in the testimony here.
You did mention that you have invested some hundreds of thousands
of dollars in Government bonds ?
Mr. RuiTL. $211,000.
Senator McNamara. That is, rather than keep the money in cash.
That is the customary practice, to invest the money ?
Mr. RuHL. Yes ; to invest it.
Senator McNamara. You have repeated 2 or 3 times that the execu-
tive committee has the authority to act between meetings.
Mr. RuHL. Yes.
Senator McNamara. Does this imply that the executive committee
reports to the rank and file periodically ?
Mr. RuiiL. Yes, sir.
Senator McNamara. Is that a monthly meeting ?
Mr. RuHL. We meet the second Tuesday in each month.
Senator McNamara. Then, in effect, these transactions are sub-
mitted through the executive committee to the rank and file, and have
been generally approved ?
Mr. RuHL. Most of them ; yes, sir.
Senator McNamara. Do you mean there are exceptions?
Mr. RuHL. There are exceptions ; little meetings between the exec-
utive board that don't amount to anything, that we don't report.
Senator McNamara. But if they have the authority to act for the
local union in the interim, between meetings, then the assumption is
that they act subject to final approval, or to approval ultimately by
the rank and file?
Mr. RuHL. Yes, sir.
Senator McNamara. And the constitution so requires?
Mr. RuHL. We read all the bills off the last thing at the meeting
and then they are approved by the meeting.
Senator McNamara. Now we are getting into the finance committee^
are we not, and that is not a function of the executive committee ?
Mr. RuHL. Yes.
Senator McNamara. I was talking about the function of the execu-
tive committee. They are to report to the rank and file ?
Mr. RuHi.. I do all of my business with the executive committee.
40 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McNamara. Well, you are related to the finance committee.
You have the finance committee, I presume.
Mr. RuHL. It is the executive board.
Senator McNamara. They act as the finance committee ?
Mr.RuHL. Right.
Senator McNamara. Then it is a combination executive board and
finance committee ?
Mr. RuHL. They O. K. all the bills. I have to read to the executive
board every month everything I did, and they O. K. them.
The Chairman. O. K.'ing a bill and O. K.'ing a loan are two differ-
ent things, aren't they ?
Mr. RuHL. That is right.
The Chairman. Did the rank and file of the members at any meet-
ing O. K. this Bassett-Klinge loan ?
Mr. RuHL. No, sir.
The Chairman. Did they ever know about it ?
Mr. RuHL. Yes, sir. It is on my Taft-Hartley report, the balance
outstanding, every year. It is also in the books every year.
The Chairman. I understand it is in the books. "V\Tiat I am trying
to determine is the difference between O. K.'ing bills that are pre-
sented each month at the meeting, and ordering them paid by the
membership, and the O. K.'ing of a $30,000 loan. Did they O. K. it?
Were they ever told about it ?
Mr. RuHL. Did the union O. K. it ?
The Chairman. Yes.
Mr. RuHL. No, sir.
The Chairman. That is what I thought.
Senator McNamara. To clear up that point in my mind, I would
like to ask the witness another question.
The Chairman. All right, sir.
Senator McNamara. Then this authority that this executive com-
mittee has to loan money, as in the instance of the $30,000, or to buy
Government bonds, or any other investment that they see. is an author-
ity that is legitimately granted to them in advance by the rank and
file ; is that not correct ?
Mr. Ruhl. The bylaws read that the executive board shall O. K. all
bills.
Senator McNamara. They are so authorized ?
Mr. Rttiil. Yes, sir.
Senator McNamara. Then it is required that it be reported, and
your system of reporting is in your annual report; is that correct?
Mr, Ruhl. Right, and also in the meeting every month I read the
financial statement.
The Chairman. Senator Kennedy.
Senator Kennedy. You earlier suggested that perhaps it would be
possible for Mr. Beck to conceivably interfere with your retirement.
How is your retirement paid ?
Mr. Ruhl. 60 percent is paid by the union and 40 percent paid by
me.
Senator Kennedy. Now, could IVIr. ]3eck or anyone else outside of
your union interfere with your retirement pay ?
Mr. Ruhl. I don't know how they could, but if I got off the job, it
would interfere with it.
IMPROPER ACTIVITIES EST THE LABOR FIELD 41
Senator Ivkxxedy, You mean if you did not last for the next year
and a half. Could Mr. Beck put you off the job ?
Mr. EuHL. Could he ?
Senator Kennedy. Yes.
Mr. EuiTL. Yes, he could.
Senator Kennedy. Even if the members of your union wanted you
to stay ?
Mr. RunL. ^Vell, I think that would be a problem for the union.
Tliey would prol^ably take it up in a corner somewhere whether they
agi-eed with Beck or whether they did not. I think that could be done.
Senator Kennedy, How could Mr. Beck put you off the job without
your ^retting the equity you have in j^our retirement fund ?
Mr. RupiL. I do not think he could put me off without getting the
equity. What has been paid in I am sure I could get.
Senator Kennedy. But he could affect the 60 percent that the union
puts in. Are tliey putting it in every year ?
Mr. RuHL. I don't think he could affect that, either. I think that
is held by this retirement plan.
Senator Kennedy. In other words, Mr. Beck, you believe, could get
you discharged from your job as head of the union a year and a half
before your retirement, and that would affect your retirement pay, or
would not ? "VVliich is it ?
Mr. EuiiL. It would affect it to some degree, because it would not
be all paid in until the full age limit.
Senator Kennedy. But there is no regulation that says you must
be on the job at the time of your retirement. All you would lose
would be the 60 percent that the union would pay in in the next 18
months; is that correct?
Mr. RuHL. It would cease right there, I presume, the way it is made
out. I could not pay into it, either, unless the 60 percent was paid.
Senator Kennedy. So you would get retirement as of now at the
rate you have paid it in and the union paid in, instead of the next
year and a half, but he could not take all of your retirement pay away
from you ?
Mr. RuHL. He could not take it all.
Senator Kennedy. But he could have you discharged from your
job, in your opinion.
Mr. RuPiL. The constitution says so — that they can remove any-
body.
Senator Kennedy. They can remove the head of any local in the
country of the teamstere?
Mr. RuHL. Yes. sir.
Senator Kennedy. And does he have to show cause ?
Mr. RuHE. I presume they would, yes.
Senator Kennedy. Is there anything in the regulation that says
how he may remove you or what reasons he must have for removing
you ?
Mr. RuiiL. I think it states that they would have to have a trial.
Senator Kennedy. Not by the members of your union ?
Mr. RuiiL. No, that would be by the international union.
Senator Kennedy. All right.
Senator Ervin. I understood 3'ou to say originally that you had
apprehension that you might possibly be removed before the time
came for your retirement, from which I drew the inference, and I
42 IMPROPER ACTIVITIES EST THE LABOR FIELD
would like to know if I am correct, that if you do not stay until the
time for your retirement comes, you cannot have the benefit of retire-
ment.
Mr, RuHL. Not the full amount of it.
Senator Ervin, If you were removed from your office at this time,
as a result of trial by the international, could you get your retirement
to the extent it has been paid in ?
Mr. RuHL, I could get the amount that has been paid in ; yes, sir.
(Senator Ives left the room.)
Senator Ervin. You have nothing to apprehend except the loss of
what proportion of the retirement would be paid in between this time
and the expiration of a year and a half ?
Mr, RuHL. That is right.
Senator Ervin. Then under that system can a person retire from
the teamsters union any time he sees fit ?
Mr. RuHL. If he leaves the job, he can draw the money, yes.
Senator Ervin. Even though he has only been in there a relatively
short time ?
Mr, RuHL. Well, I don't know exactly how the thing is written.
I think he has to be there a certain amount of time. I don't know.
I am not familiar with how they have it written.
Senator Isjennedy. Do you have to be there 30 years to be eligible
for this retirement ?
Mr. RuHL. No; at the age of 65. I have been there more than
30 years.
Senator Kennedy. But you do not feel that there is any way that
Mr. Beck, regardless of what attitude he took toward you, could
in any way lessen the amount that the union itself would pay you
as of this date? In otlier words, it is not necessary that you be
on the job at that age for a certain length of time before you are
eligible for the money that the union has been putting in every year ?
Mr. RuHL. The union would not pay it. That is a policy through
the Occidential Life Insurance.
Senator Ivennedy. The union has been putting in the funds every
year. The union does not make a lump payment at the end of a
certain period of time. You have the equity in the union money as
well as the money you have put in; is that correct?
Mr, RuHL. Each month the union pays on everyone under retire-
ment, I think it is, 10 cents a member, charge to the union, 10 cents
a member.
Senator Kennedy, I do not see what Mr. Beck's power would
be, except as Senator Ervin suggests, of the amount that would be
lessened in the next 18 months by the amount this union might not
put in,
Mr, RuHL, I don't think they can put it in after you are off the job.
The Chairman, You say you would stand to lose your job and
lose the additional benefits from now until the end of next year would
provide. Is that what it amounts to ?
Mr, RuiiL, I must be there until 65 years old; yes, sir. It does
not have any concern with how long I am there.
The Chairman. I am talking about what you would stand to lose
in the event you would be discharged.
Mr. RuiiL. I would lose my salary, and I would lose part of that
pension plan.
IMPROPER ACTIVITIES IN THE LABOR FIELD 43.
Senator Goldwater. Mr. Chairman.
The Chairman. Senator Goldwater.
Senator Goldwater. I would like to change the subject just a
little bit. I am looking at 2 months, April and May 1948, of your
cash expenditures. I see expenditures m here to Spokane Build-
ing Trade Council, Western Warehouse Produce Council, or Pro-
duction Council, Western States Dairy Council, Automotive Trade
Council. What is the nature of those councils?
Mr. RuHL. Those are the monthly taxes, per capita taxes to that
division. They are divisions of the union.
Senator Goldwater. These councils are divisions of the union?
Mr. RuHL. In the Western Conference of Teamsters, yes, sir.
Senator Goldwater. They are in no way organizations of man-
agement.
Mr. RuHL. There is a bakery division, laundry division. Each
thing is set up in a category. We are taxed so much to each division.
Senator Goldwaitsr. The Building Trades Council, Spokane Build-
ing Trades Council.
Mr. RuHL. That is not the teamsters. The Building Trades Council
is the construction industry. I pay tax also to that.
Senator Goldwater. What I am trying to get at is are these councils
made up of managements ?
Mr. RuHL. Of which?
Senator Goldwater, ]\Iade up of managements ?
Mr. RuHL. No, that is the building crafts union. We are a member
of that also.
Senator Goldwater. Let us take the Western States Dairy Council.
Mr. RuHL. That is part of the Western Conference of Teamsters.
Senator Goldwater. There are no management members of that
council ?
Mr. RuHL. Yes, they have boards.
Senator Goldwater. I mean are there owners of dairies, operators
of dairies ?
Mr. RuHL. No, there are no owners connected with it.
Senator Goldwater. In other words, this is not an organization
comprised of management and union.
Mr. RtiHL. No. That is a function of the Western Conference of
Teamsters.
Senator Goldwater. It has no relationship at all to management.
Mr. RuHL. No.
Senator Goldwater. Not at all ?
Mr. RuHL. No, sir.
Senator Goldwater. So that your interests in these councils is
merely to further the interest of labor ?
Mr.RuHL. Right.
Senator Goldwater. They are not to provide a means of collusion
or restraint of trade between managements and miions ?
Mr. RuHL. No, sir.
The Chairman. Chief counsel, proceed.
INIr. Kennedy. Mr. Ruhl, we were discussing the fact that your
union and unions with which you have been associated have made four
loans. You discussed the first one of approximate!}" $5,000, which was
89330—57 — pt. 1 4
44 IMPROPER ACTIVITIES IN , THE LABOR FIELD
made to an employee wlio liad embezzled some money. The second
was to Tom Maloney, on the suggestion of Frank Brewster, $3,900.
This last one was to Mr. Klinge for $80,000, which was made indirectly
to Mr. Klinge through Sam Bassett.
There was a fourth loan. Would you tell the committee to whom
that loan was made ?
Mr. RuHL. The fourth loan ?
Mr. Kennedy. Yes.
Mr. Rtthl. One is to the girl.
Mr. Kennedy. Right.
Mr. RiTHL. One is to Sam Bassett.
INIr. Kennedy. R i ght .
Mr. RuHL. And Sam Sellinas.
The Chairman. Sam who ?
Mr. Kennedy. S-e-1-l-i-n-a-s, Sam Sellinas.
Did Mr. Sam Sellinas come to you and ask for a loan ?
Mr. RuHL. Yes, sir.
Mr. Kennedy. What did he need the loan for ?
Mr. RtTHL. I think he needed it to square himself with his tax.
Mr. Kennedy. He was having a tax problem ?
Mr. RtJHL. He was about to lose his ranch, yes, sir.
Mr. Kennedy. He was about to lose his ranch because he needed
to pay some taxes, is that right ?
Mr. RuHL. I presume there were taxes mixed in it.
Mr. Kennedy. How much money did he ask to borrow from your
union?
Mr. RmiL. $17,000.
Mr. Kennedy. iVnd did you agree that he should borrow $17,000
from your union ?
Mr. RuHL. There, again, it was taken up with the building com-
mittee.
yiv. Kennedy. What did you decide to do ?
Mr. Rfhl. The building committee decided it was O. K. to loan
the money, provided we got
Mr. Kennedy. Let me ask you first, had you turned him down
oriofinally ?
Mr. RuHL. Yes, I think I turned him down and told him he would
have to take it up with Mr. Beck or Mr. Brewster.
Mr. Kennedy. You knew that Mr. Sellinas was a close friend of
Mr. Brewster ?
Mr. RuHL. Yes.
Mr. Kennedy. And he is a well-known gambler in the State of
Washington?
Mr. RupiL. Yes.
Mr. Kennedy. A notorious gambler in the State of Washington ?
Mr. Ri:hl. I would not say he is notorious.
Mr. Kennedy. He has a criminal record regarding gambling; does
he not?
Mr. Rt^tie. I know of a couple of instances, yes.
Mr. Kennedy. So you felt that this was not the proper, the right
kind of person to loan $17,000 of union funds to, is that correct?
Mr. RuHL. Right.
Mr. Kennedy. What made you change your mind and decide to
loan $17,000 to Mr. Sellinas ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 45
Mr. RuHL. Well, the fact that he was goin;Li" to put up property
for it.
Mr. Kennedy. Were there any conversations M'ith any higher offi-
cials of the teamsters union regarding the loan to Sam Sellinas ?
Mr. RuiiL. I told Mr. Sellinas to see Mr. Brewster, yes.
Mr. Kennedy. Did you hear then from Mr. Brewster i
Mr. RuiiL. Yes, sir.
Mr. Kennedy. What did IMr. Brewster say ?
Mr. RuHL. He called me on the telephone and he said, "I under-
stand that your union has agreed to loan Sellinas some money."
Mr. Kennedy. What did you say ?
Mr. RuHL. I said, "Yes, they have."
Mr. Ivennedy. Plad you agreed. by that time ?
Mr. RuiiL. Yes ; we had agreed.
Mr. Kennedy. You thought that was a good loan to make?
Mr. RuHL. Yes, sir.
Mr. Kennedy. To Mr. Sam Sellinas, a well-known gambler in the
State of Washington, who was in tax difficulty and did not want to lose
his ranch, you felt that was a good investment for union funds?
Mr. RuHL. Yes, sir.
Mr. Kennedy. And you decided that before you even heard from
Mr. Frank Brewster, is that right ?
Mr. RuHL. Xo; we did not decide that. I think the minutes will
show
Mr. Kennedy. Excuse me?
Mr. RuHL. I think the minutes will show it was after he talked to
Mr. Brewster.
Mr. Kennedy. It was after he talked to Mr. Brewster ?
Mr. RuiiL. Yes.
Mr. Kennedy. You heard from Mr. Brewster first ?
Mr, RuiiL. I talked to the executive board of the building first.
(Senator McCarthy entered the room.)
Mr. RuHL. I told him that they would loan it. but, I said, first he
would liave to take it up with either Mr. Beck or Mr. Brewster.
Mr. Kennedy. But your executive board decided on their own tliat
this would be a good investment ?
Mr. RuHL. They would have that right ; yes, sir.
(Senator Kennedy left the room.)
Senator McCarthy. Could I interrupt to apologize to the chairman
for being late? I was testifying before the Judiciary Committee, or
I would have been here. I hope to be here at all sessions in the future.
The Chairman. Very well. Go ahead, Mr. Counsel.
Mr. Kennedy. You thought that that was a good investment for the
anion funds ?
Mr. RuHL. At the rate of 5 percent interest ; yes.
Mr. Kennedy. Five percent interest. You then discussed it with
Frank Brewster and he told you go ahead, is that right ?
Mr. RriiE. He called me on the telephone. I did not discuss it with
liim. I told Sam to discuss it.
Mr. Kennedy. Your building fund and local 690 are not in the prac-
tice of making loans, are they ?
Mr. Rtjhl. No, sir.
Mr. Kennedy. So it would have to be an unusual set of circum-
stances for you to make a loan, would it not ?
46 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. RuHL. It would have to be ; yes.
Mr. IvENNEDT. You felt Sam Sellinas, a well-known gambler in the
State of Washington, who was in tax difficulty, who wanted to save his
ranch, you felt that that met the requirements ?
Mr. RuHL. I think it did ; yes.
Mr. I^NNEDY. In fact, if he was a friend of Frank Brewster, would
that also play a part ?
Mr. RuHX,. No ; I would not say that that played a part. I think
everyone in our union was a friend of Mr. Sellinas.
Mr. Kennedy. You are all friends of Mr. Sellinas ?
Mr. RuHL. He had a ball club that was all practically teamsters, a
Softball club.
Mr. Kennedy. Was that approved by the rank and file of the union
members ?
Mr. RuHL. It was approved only by the executive board.
The Chairman. A number of members of the committee have other
duties that they need to look after. It will be the policy of the com-
mittee to be in session until 12 or a little after in the mornings, and
for this series of hearings, at least, we will hold afternoon sessions. I
believe we are not quite through with this witness.
The counsel advises me he can conclude with the witness in about 3
minutes. We will indulge about that much longer, then.
JMr, Kennedy. The loan was not made directly to Sam Sellinas. It
was made to Mr. Dudley Wilson on December 18, 1953 ?
Mr. RiTHL. Yes, sir.
Mr. Kennedy. And Mr. Sellinas, through Mr. Wilson, did not repay
the loan at the time they were supposed to, and requested an extension,
did they not ?
Mr. RuiiL. That is right.
Mr. Kennedy. And that was on — well, the extension was granted
by the board on October 24, 1955, for 2 more years ; is that right ?
Mr. RuHL. That is right.
Mr. Kennedy. Did you clear that through Frank Brewster ?
Mr. RuHL. No, sir. The extension on the loan was only on the bal-
ance of it.
Mr. Kennedy. The balance of the loan that was due?
Mr. RuHL. I got $10,000 of it.
Mr. Kennedy. Mr. Chairman, we have a number of documents there
that bear out the discussion that I have had with Mr. Ruhl about the
loan. If we could make them exhibits for reference, anyone that
wanted to consult with them could see if these statements are correct.
TESTIMONY OF JEROME S. ADLERMAN
The Chairman. Mr. Adlerman, do you have the documents that
counsel refers to ?
Mr. Adlerman. Yes, sir ; I have a series of documents here.
The Chairman. What documents do you have there ?
Mr. Adlerman. I have a record of the minutes of the Teamsters
Union showing that the borrower had the approval of Vice President
Brewster to make the loan.
The Chairman. Vice President Brewster?
Mr. Adlerman. That is right. That is dated December 8, 1953.
IMPROPER ACTIVITIES IN THE LABOR FIELD 47
The Chairman. Mr. Kuhl, do you recognize the photostatic copy of
the minutes to which Mr. Adlerman referred ?
(Document handed to witness.)
Mr. RuHL. Yes, sir.
The Chairman. Are the}' correct?
Mr. RuHL. They are correct.
The Chairman. That may be made exhibit 9.
(The document referred to was marked "Exhibit No. 9" for refer-
ence and will be found in the appendix on p. 356.)
Mr. Adlerivian. I have a check for $17,000 dated December 18, made
out to the order of Dudley Wilson, by the Teamsters Union Temple
Association on the Old National Bank of Spokane and endorsed by
him. I believe Mr. Wilson is the attorney for the union as well as the
attorney for Mr. Sellinas on his tax problem.
The Chairman. Does that check represent the Sellinas loan?
Mr. RuHL. Yes, sir.
The Chairman. Do you recognize it ?
Mr. RuHL. Yes, sir.
The Chairman. It will be made exhibit 10,
(The document referred to was marked "Exhibit No. 10" for ref-
erence, and will be found in the appendix on p. 357.)
Mr. Adlerman. Here is a bank statement showing the withdrawal
out of a full balance of $52,226.78 in the Teamsters Union Labor Tem-
ple account.
The Chairman. Do you recognize that photostatic copy, Mr. Ruhl?
Mr. RuHL. Yes.
The Chairman. It will be made exhibit 11.
(The document referred to was marked "Exhibit No. 11" for ref-
erence, and will be found in the appendix on p. 358.)
Mr. Adlerman. I have a document which is the extension of the
loan approved by the board of trustees.
The Chairman. What is that document? Is it the minutes of the
meeting ?
Mr. Adlerman. Yes, a special meeting of the board of trustees of
the Teamsters Union dated October 24, 1955, and after considerable
discussion it was moved that the loan be extended.
The Chairman. Do you recognize that photostatic copy, Mr. Ruhl ?
Mr. Ruhl. Yes, sir.
The Chairman. It may be made exhibit No, 12,
(The document referred to was marked "Exhibit No, 12" for ref-
erence, and will be found in the appendix on p. 359.)
( Senator McCarthy left the room.)
Mr. Adlerman. Here is a letter dated June 5, 1956, from Mr. Ruhl
to Mr. Wilson serving notice of a $17,000 balance of Mr. Sellinas as of
June 5, 1956.
The Chairman. Do you recognize that document, Mr. Ruhl ?
(Document handed to witness.)
Mr, Ruhl. Yes, sir.
The Chairman. That will be made exhibit 13.
(The document referred to was marked "Exhibit No, 13" for refer-
ence, and will be found in the appendix on p. 360.)
Mr, Adlerman. Here is a financial statement of the Teamsters Un-
ion Temple Assaciation dated December 31, 1955, which shows the loan
48 IMPROPER ACTIVITIES IN THE LABOR FIELD
to Dudley Wilson, attorney, $17,000, the total assets being reflected as
$146,839.21.
The Chairman. There is a live quorum call by the Senate.
(Senator Goldwater left the room.)
Mr. Adlerman. That completes the documents.
The Chairman. The last item will be made exhibit No. 14.
(The document referred to was marked "Exhibit No. 14" for refer-
ence, and will be found in the appendix on p. 361.)
The Chairman. The committee will stand in recess until 2 o'clock.
Mr. Ruhl, you are not discharged as a witness. You will remain
subject to call.
Mr. Ruhl. Yes, sir.
(Thereupon at 12:15 p. m., a recess was taken until 2 p. m., the
same day. Present at the taking of the recess: Senators McClellan,
Ervin, and McNamara.)
afternoon session
(The hearing was resumed at 2 p. m.. Senator John L. McClellan,
chairman, presiding.)
The Chairman. The committee will be in order.
(Present at the opening of the hearing were Senators McClellan,
Ives, Kennedy, McNamara, and Goldwater. )
The Chairman. We will proceed.
Mr. Kennedy. Mr. Chairman, we were discussing this morning a
loan or several loans from the Teamsters Union in Spokane, one of
them to Mr. Sellinas, and we have an affidavit here from Mr. Sam
Sellinas, which I would like to present to you.
The Chairman. Without objection, the Chair will read the affi-
davit into the record.
February 21, 1957.
State of Washington,
County o-f King, ss:
I, Sam Sellinas, of my free will and with no promise of immunity make the
following statement. That I presently reside at the Baldwin Apartments,
Seattle, Wash, and that I am presently unemployed. From 1919 to 1056 I was
a resident of Spokane, Wash. During that time I engaged in a number of
occupations, primarily farming, gambling, and bootlegging. In 1946, I went
into the racehorse business with Mickey McDonald of Calgary, Alberta, Canada.
We owned two horses together. I subsequently purchased three more horses.
During the time I was racing horses at Longacres and Playfair Racetracks in
the State of Washington, I became acquainted with Mr. Frank Brewster, who
was then chairman of the Washington State Racing Commission.
Sometime in 19.5.3 or 1054, I contacted Mr. A. J. Ruhl of the Teamsters Union
Ix)cal 690 in Spokane, Wash., relative to obtaining a loan from the union. I
was faced at that time with a tax lien of around $13,000 levied by the Federal
Government and had no funds to meet this lien. The Government was threaten-
ing to auction two pieces of property I owned if I did not meet this lien. I
asked Mr. Ruhl to lend me $17,000 from the union funds. Mr. Ruhl said he
would have to take it up with his executive board. He later told me this loan
was O. K. Either before or after the loan was granted to me I saw Mr. Frank
Brewster and he told me the loan was all right if my property was put up as
security. The $17,000 check was made payable to Mr. Dudley Wilson, attorney
for the teamsters. Mr. Wilson paid ofC some liens against my property being
held by a bank in Spokane. He also paid off the Federal lien. I got the pro-
ceeds but do not remember how much this was.
Last year I sold one of the pieces of property being held by the union for
$20,000 and gave the union $10,000 of this as a payment toward what I owed them.
I still owe the union $7,000 and am presently imable to pay it although the loan
is extended until January 1, 1958. *♦
IMPROPER ACTIVITIES EST THE LABOR FIELD 49
I came to know Mr. Thomas Maloney in Spokane around 1946. At that time, he
was around the racetrack in Spokane. I later knew him when he was operating
Maloneys Sports Center, in Spolcane which was a combination bar-restaurant
with a cardroom in the bade where they played cards and other games.
I have spent time in jail only twice in my life. Twenty years ago I served 5
months in the Spokane County jail for bootlegging. In 1955, I served 60 days
for gambling in Idaho. I believe all the above statements to be the truth to the
best of my knowledge.
Sam S. Sellinas.
Subscribed and sworn to me this date, February 21, 1957.
John A. Roberts, .Jr.,
Notary Public in and for the State of Washington, residing at Seattle.
That will be made a part of the record.
Mr. Kennedy. Mr. Chainiian, I would like to call Mr. Tom Maloney
as a witness to ask him a question about the Maloneys Sports Center,
and his tieup with Mr. Frank Brewster.
The Chairman. Mr. Tom Maloney, come around, please.
Senator Goldwater. flight I ask the counsel a question before we
proceed with tliis witness ?
I understood from the affida\'it just read that ISIr. Frank Brewster
was a member of the Racing Commission of the State of "Washington.
Mr. Kennedy. That is correct.
Senator Goldwater. That is the same Frank Brewster that we are
concerned with ?
Mr. Kennedy. I do not believe he is a member any longer, but he
was a member. I think he was released.
The Chairman. Do you solemnly swear that 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. Maloney. I do.
Mr. Rand. May I request that the photographers and the cameramen
be asked to desist taking pictures while Mr, Maloney is testifying, and
that the lights be turned away from us, please ?
The Chairman. Just one moment. We will take up that matter.
Will you state your name, and your place of residence and your busi-
ness or occupation, please, sir ?
TESTIMONY OF THOMAS A. MALONEY, ACCOMPANIED BY
HARRY I. RAND, COUNSEL
Mr. ]VL\loney. My name is Thomas A. Maloney, and I was born in
San Francisco July 4, 1900, and I live at 8711 East Second Street,
Spokane, Wash., and I am unemployed.
The Chairman. You are unemployed ?
Mr. IMaloney. Yes, sir.
The Chairman. Y^ou have elected, have you, to have counsel present ?
Mr. Maloney. Y^es, sir.
The Chairman. Counsel, will you identify yourself for the record.
Mr. Rand. Harry I. Rand, Washington Building, Washington 5,
D. C.
The Chairman. You may make your request, Mr. Rand.
Mr. Rand. I request on behalf of the witness that photographers be
asked to desist taking pictures during his testimony, and likewise that
the lights be turned away from us or turned off so that Mr. Maloney
may give his testimony without the influence of the lights.
50 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. This request addresses itself to the committee.
The Chair may refer to the rules under which I presume the request
is made. It is rule No. 8. A witness may request on grounds of dis-
traction, harassment or physical discomfort that during his testimony
television, motion pictures and other cameras and lights shall not be
directed at him. Such request is to be ruled upon by the committee
members present at the hearing.
What is the pleasure of the committee? The Chair would note,
however, that the request of counsel did not enumerate any of the
reasons here why he desired the lights to be turned off. If you care
to state the reasons ?
Mr. Rand. I thought I had stated that Mr, Maloney thus would be
permitted to testify without the interference, I can use the terms "dis-
traction" and "harassment" which undoubtedly results from these
lights. I cei'tainly am troubled by them, and I am sure that Mr,
Maloney is troubled. He asked me to make the request.
The Chairman. The Chair would remark if you are troubled by
them, how do you think the committee operates?
Mr. Rand. The committee has a tough time operating under these
lights, I realize that.
The Chairman. It is up to the committee. What is your pleasure,
gentlemen ?
Senator Goldwater. I move that the request of counsel be complied
with.
The Chairman. Is there any objection? The Chair hears none,
and the request of counsel will be complied with. There is no inhibi-
tion or rule against the photographers looking this way and turning
their cameras this way, but you will not take pictures of the witness
while he is testifying, and the lights will not be directed at the witness
while he is testifying.
Now, gentlemen, you are our guests here, and we hope each one
observes the order of the Chair. We will now proceed.
Mr. Rand. May I thank the Chair and the committee, please.
Mr. Kennedy. Mr. Maloney, we have had discussions in my office
on Saturday?
Mr. Maloney. That is right,
Mr. Kennedy. And at that time you were unable to procure counsel,
is that right?
Mr. Maloney. That is right,
Mr. Kennedy. You did not have counsel ?
Mr. Maloney. That is right.
Mr. Kennedy. You were going to meet some of your friends com-
ing in from Portland on the following day, and met them, is that
right ?
Mr. Maloney. That is right.
Mr. Kennedy, And you expected to be able to get counsel through
that way. You expected to be able to get counsel through them ?
(Witness consulted his counsel.)
Mr. Maloney. Yes, I expected to get counsel.
Mr. Kennedy. They were unable to get you counsel, is that right ?
Mr. Maloney, That is right.
Mr. Kennedy, And Mr, Adlerman suggested that you report to
the Legal Aid Society ?
Mr. Maloney. That is right.
IMPROPER ACTIVITIES IN THE LABOR FIELD 51
Mr. Kennedy. And you said that you did not want to go down
tliere, is that right?
Mr. Maloney. That is right.
Mr. Kennedy. And then he spoke to you again to find out if you
had gone, and you said, "I received a telephone call and I have
counsel."
Now, whom did you receive the telephone call from ?
(Witness consulted his counsel.)
Mr. Maloney. I want to read to the committee
Mr. Kennedy. Could you answer my question, first, about who
called you to say that they had gotten counsel for you ?
Mr. Maloney. I stand on my constitutional rights under the fifth
amendment.
Mr. Kennedy. On who called you to get your counsel ?
Mr. Maloney. Yes, sir.
Mr. Kennedy. You don't want to tell the committee ?
Mr. Maloney. No, sir.
Mr. Kennedy. Was it a member of the teamsters union ?
Mr. Maloney. No, sir.
Mr. Ejinnedy. It was not ?
Mr. IVIaloney. No.
Mr. Kennedy. Then you will answer the question, if it was no one
associated with any member of the teamsters.
Mr. Maloney. I will stand on my constitutional rights and invoke
the fifth amendment, and I would like to read this statement to th&
committee if you will let me.
The Chairman. Have you submitted the statement to the com-
mittee ?
Mr. Rand. This is merely explaining why he is taking the fifth.
It is not a long statement.
The Chairman. All right, if he wants to explain — just a moment—
if the witness wants to explain why he is taking the fifth amendment,
I think the committee is willing to hear him.
Mr. Maloney. I am now under indictment in the State of Oregon,
charged with a violation of certain laws of that State and with con-
spiracy to violate certain laws of the State. From articles I have seen
in the public press, from statements reported to have been made by
members of this committee, and from questions put to me by staff
employees of this committee, I am aware that this committee is en-
gaged in an investigation of the teamsters union. Charges have been
made that that union or some of its officers have been involved in an
UTil awful conduct. In view of these circumstances, I have reason to-
fear that any answer I might make to the questions here asked and
similar questions may possibly be used as a basis for criminal prosecu-
tion of myself.
I therefore must refuse to answer this question and similar questions
relying on my privileges and rights under the fifth amendment and
the Constitution of the United States of America.
The Chairman. All right, Mr. Counsel, you may proceed.
Mr. Kennedy. That includes telling us who got your attorney for
you, Mr. Maloney ?
Mr. Maloney. Yes, sir.
Mr. Kennedy. You don't want to tell the committee who got your
attorney for you ?
52 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Maloney. No, sir.
Mr. Kennedy. Will you deny that it was-
Tlie Chairman. Just a moment. The Chair does not think it is all
important at this point, but certainly that was not a question involved
in your indictment. You did not seek this attorney until after that
indictment and you only sought this attorney according to the testi-
mony in the last 2 or 3 days, is that correct ?
(Witness consulted his counsel.)
Mr. Maloney. AVill you repeat the question of the Chairman,
please.
The Chairman. I will repeat the question. I said the question about
the attorney here had not transpired prior to the time that you were
indicted. That is a matter that has occurred here during the last 2
or 3 days. Subsequent to your indictment, is that correct ?
(Witness consulted his counsel.)
Mr. Maloney. That it did.
The Chairman. That is correct, is it not ?
Mr. MLvloney. Yes.
The Chairman. Now, the Chair wishes to ask you this question.
Do you honestly believe that if you answered the question about who
called you to get an attorney for your appearance here, that a truthful
answer to tliat question might tend to incriminate you ?
(Witness consulted his counsel.)
Mr. Maloney. Yes.
The Chairman. Do you think that would also tend to incriminate
you as well as to answering other questions ?
Mr. Maloney. That is right.
The Cil\irman. All right, proceed.
Mr. Kennedy. Mr. Maloney, did you also tell us that you had no
money to pay an attorney, and therefore we had suggested that you go
to the legal aid society ?
(Witness consulted liis counsel.)
Mr. Maloney. I stand on my constitutional rights under the fifth
amendment and refuse to answer that question.
Mr. Kennedy. You take the fifth amendment on that ?
Mr. Maloney. Yes, sir.
Mr. Kennedy. Have you received any moneys from anyone in the
last 48 hours ?
Mr. Maloney. Have I received any money in the last 48 hours?
Mr. Kennedy. Have you received any moneys to pay any attorney
from anyone in the last 48 hours ?
(Witness consulted his counsel. )
Mr. Maloney. No.
]\Ir. Kennedy. Are you paying this attorney yourself, Mr. Maloney ?
(Witness consulted his counsel.)
Mr. Rand. Excuse us a moment.
(Witness consulted his counsel.)
(Senator IMundt entered the room.)
Mr. IMaloney. I refuse to answer that question under the fifth
■amendment.
Mr. Kennedy. Is your attorney being paid in any way by any team-
sters official?
Mr. Maloney. I refuse to answer that question under the fifth
amendment.
IMPROPER ACTIVITIES EST THE LABOR FIELD 53
Mr. Kexxedt. Have you ever been an employee of the teamsters?
(Witness consulted his counsel.)
Mr. Maloney. No.
Mr. Kennedy. You have not ?
Mr. MOLONEY. No.
]\Ir. Kennedy. Have you ever received any money from the team-
sters ?
Mr. INTalgney. I refuse to answer that question under the fifth
amendment.
The Chairman. Just a moment. The Chair is ^oinj? to order you
to answer that question. You said you had never been employed by
them and you are willin<^ to answer that. Certainly you have waived
in the Chair's estimation the ri^ht to say whether you have received
any money from them.
(Witness consulted his counsel.)
Mr. Maloney. I refuse to answer that question.
The Chairman. You are ordered and directed to answer the ques-
tion.
Mr. MOLONEY. I refuse to answer it under the fifth amendment.
Mr. Kj:nnedy. Have 3'ou received any moneys from Mr. Frank
Brewster?
Mr. Maloney. I refuse to answer that question under the fifth
amendment.
Mr. Kennedy. How lono- have you known Mr. Frank Brewster ?
(Witness consulted his counsel.)
Mr. Maloney. I refuse to answer that question under the fifth
amendment.
Mr. Kennedy. How many times did ^Ir. Frank Brewster set you up
in business with union funds ?
Mr. Maloney. I refuse to answer that question under the fifth
amendment.
The Chairman. Let the Chair ask you, Do you honestly believe that
if you answered that question truthfully that somebody let you have
money to set up in business, Mr. Frank Brewstei-, that a truthful
answei' to that question might tend to incriminate you ?
Mr. Maeoney. Mr. Chairman, I am under indictment in the State
of Oregon.
The Chairman. You are not under indictment for borrowing
monev, are vou?
Mr. Maloney. I am under indictment, or under five indictments in
the State of Oregon, charged with the violation of certain laws, and
naturally they are going to try to connect the teamsters union and me
together and try to convict me. I have got to stand on my constitu-
tional rights and invoke the fifth amendment. I understand the fifth
amendment, Mr. Chairman, is protecting the imiocent as well as the
guilty. Is that correct or am I wrong ?
Mr. Chair3Ian. You can place your own interpretation on it. You
know better than I do whether you are guilty or innocent. You are
iuA'oking it so you place your own interpretation on it.
Mr. Maloney. I stand on it and I invoke it.
Mr. Chairman. All right.
Mr. Kennedy. Did you have an interest in the Maloney Sports
center ?
54 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. I would like to ask the witness one question. You
used the word and term, you said in view of these indictments, naturally
they were going to try to connect you with the teamsters union. Why
do you use that term "naturally" ?
]\lr. Maloney. I offer this letter that I wrote to you, that I am under
indictment.
The Chairman. How did you happen to use it in the letter? Do
you have the word "natural" in there ?
Mr. Maloney. I do not know. Can I read it over again to you ?
The Chairman. It is your letter, and you may read it if you are not
familiar with it. Do you have the word "natural" in there f
Mr. Maloney. I don't know. I will read it and see.
The Chairman. All right, read it to yourself.
Mr. Maloney (reading) :
I am now under indictment in the State of Oregon.
The Chairman. Read the letter to yourself.
Mr. Maloney. All right.
Mr. Rand. Plave these photogi^aphers been asked to desist or are
they supposed to comply with the rules of this committee as well as
we are ?
The Chairman. Just a moment. Now, if you want to make a re-
quest of the Chair, or make any statement, you may. The Chair has
not observed any photographer taking a picture of the witness while
he is testifying. The Chair will admonish each photographer pi-esent
that any violation of the orders of the Chair means immediate expul-
sion of whoever violates the order.
Mr, Rand. Thank you, Mr. Chairman.
The Chairman. Proceed.
(T/yitness consulted his counsel.)
Mr. Maloney. Mr. Chairman, I fear possible incrimination, and I
read this ■
The Chairman. I understood you to fear incrimination, but you
used the word "naturally" they were going to try to tie up the teamsters
union with you. You said you got the word "naturally" from that
paper. In your letter before you, what have you written there ?
Mr. Maloney. I am wiong, sir.
The Chairman. You were wrong?
Mr. Maloney. Yes, sir
The Chairman. Now, why did you use the word "naturally" ? You
used it. I did not.
Mr. Maloney. I refuse to answer that question.
The Chairman. The Chair orders and directs you to answer the
question because you testified upon that point, that "naturally" they
were going to try to tie you up with the teamstei^ union. Will you
state why? The Chair directs you to state why you used the term
"naturally" and how does it apply. How is it relative to your testi-
mony?
Mr. Maloney. I stand on my constitutional rights and invoke the
fifth amendment to that question.
The Chairman. You refuse to answer that question ?
Mr. Maloney. That is right.
The Chairman. You are ordered and directed to answer it.
Mr. Maloney. I refuse to answer it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 55
The Ch.ukman. Proceed, Mr. Counsel.
Mr. Kennedy. I was asking you about the Maloney Sports Center.
Do you have an interest in the Maloney Sports Center i
(Witness consulted his counsel. )
Mr. Kennedy. Let me rephrase that. Did you have an interest
in the Maloney Sports Center ?
(Witness consulted his counsel.)
Mr. Mai-oney. I stand on my constitutional rights and refuse to
answer the question.
Mr. Kennedy. Did Mr. Frank Brewster have any interest in the
Maloney Sports Center ?
Mr. Maloney. I refuse to answer that question and invoke the
fifth amendment.
Mr. Kennedy. Have you given to Frank Brewster directly or in-
directly in the past 20 years any moneys that you made from your
various businesses ?
Mr. Maloney. I refuse to answer that question and invoke the fifth
amendment.
Mr. Kennedy. Have you been involved in bootlegging or gambling ?
Mr. Maloney. I refuse to answer that question and invoke the fifth
amendment.
Mr. Kennedy. Did you give Mr. Frank Brewster any moneys re-
ceived from bootlegging and gambling ?
Mr. JVIaloney. I refuse to answer that question and invoke the fifth
amendment.
The Chairman. Do you honestly believe that the answering of these
questions truthfully might tend to incriminate you ?
Mr. IVLvloney. Yes.
The Chairman. You honestly believe that.
Mr. Maloney. I refuse to answer.
(Witness consulted his counsel.)
Mr. Maloney. I do.
Mr. Rand. I wanted the record to show the nod, sir.
The Chairman. I am sure the counsel is obeying the rules, and
he can onlv advise his witness as to his legal rights.
Mr. Rand. I merely wanted the record to show the nod, verbatim,
as it were.
The Chairman. We are glad to get the verbal answer.
Mr. Kennedy. I just have a couple of more questions I want to
ask at this time.
First, do you know Mr. Joseph Patrick McLaughlin ?
Mr. Maloney. I refuse to answer that question under the fifth
amendment.
The Chairman. You mean you lionestly believe it might tend to
incriminate you if you admitted you know someone?
Mr. Maloney. I do.
The CiiAiRiMAN. Maybe you are right. Proceed.
Mr. Kennedy. Do you know Mr. Clyde Crosby, international or-
ganizer of the teamsters, with headquarters in Portland, Oreg. ?
Mr. Maloney. I refuse to answer that question under the consti-
tutional rights and invoke the fifth amendment.
Mr. Kennedy. Do you know Mr. AVilliam Langley, presently dis-
trict attorney in ^lultnomah County, State of Oregon?
56 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Maloxey. I refuse to answer that question under the fifth
amendment.
The Chairman. Have you not had conferences with him ?
(Witness cojisulted his counseL)
Mr. Maloney. I refuse to answer that question under the fifth
amendment.
The Chair]man. Have you not had conferences with him, with ref-
erence to gambling, racketeering and other business matters regard-
ing Portland, Oreg. ?
Mr. Maloney. I refuse to answer that question under the fifth
amendment of the Constitution of the United States of America.
The Chairman. If a record of your conversation is played in your
presence, will you say whether you recognize your own voice or not?
Mr. Maloney. I refuse to answer that under the fifth amendment.
The Chairman. In other w^orcls, you think it would incriminate
you to acknowledge your own voice if you heard it on those records?
Mr. Maloney. I do.
The Chairman. Thank you.
Mr. Kennedy. That is all at this time, Mr. Chairman,
I have just one other document that I would like to have him re<;og-
nize or identify prior to calling the next witness.
The Chairman. The Chair presents to you a document, the title
of it is "Assignment" and it is dated on the 29th day of March 1950,
and appears to be signed by Thomas E. Maloney, and it is acknowl-
edged before a notary public, Edward P. Ferris. This is a photo-
static copy of the original, and the Chair directs the clerk to present
it to you, and asks that you examine it.
(Document handed to witness.)
(The document referred to was later introduced as exhibit 16, and
will be found in the appendix on p. 366.)
The Chairman. And ask that you identify it.
]VIr. Reporter, let the record show that the clerk of the coimnittee
presented the document to Mr. Maloney, and he is presently exam-
ing it.
(Witness consulted his counsel.)
Mr. Maloney. I refuse to identify this letter, and I stand on my
constitutional rights and invoke the fifth amendment.
The Chairman. You refuse to identify it, just to say that you recog-
nize it ?
Mr. Maloney. I do not recognize it. I stand on my constitutional
rights.
The Chairman. The question is. Do jou or do you not recognize
it as a ])hotostatic copy of the original?
Mr. Maloney. I do not.
The (^hairman. You do not ?
Mr. Maloney. No.
The Chairman. You say you do not ?
Mr. Maloney. That is right.
The Chairman. Do you recognize your signature on it?
Mr. Maloney. I stand on my constitutional rights.
The Chairman. You are ordered and directed to answer that ques-
tion, and you have testified that you do not recognize the document.
(Witness consulted his counsel.)
EVIPROPER ACTIVITIES IN THE LABOR FIELD 57
The Chairman. I ask you whether you recognize your own
signature.
Mr. Malonet. I stand on my privileges and invoke the fifth
amendment.
The Chairman. You are refusing to answer notwithstanding the
order and direction of the Chair to do so.
ISIr. Maloney. That is right.
The Chairman. AVill you write j^our signature on that pad there
by you, with a pencil ?
Mr. Eand. Do the rules of the committee permit the Chair to re-
quest the witness to write his signature ? I thought he was subpenaed
here merely to give testimony.
The Chairman. He is.
Mr. Rand. I therefore would like to object on behalf of the witness
to the demand by the Chair here that the witness do the physical
act of writing his signature, sir.
The Chairman. You may object and the Chair is going to order
him to do it. He can stand on his constitutional rights again, if he
wishes to. But there is a document presented to him which he says
he does not recognize. He stood on his constitutional privilege and
refused to state whether he recognized it or not. There might have
been some justification for the objection that 3^011 now interpose, but
since he has sworn under oath that he does not recognize it, and
then refuses to identify his signature, I am ordering and directing
the witness to write his signature on the pad there by him.
(Witness consulted his counsel.)
Mr. Maloney. I decline to do that and stand on my constitutional
rights.
The Chairman. Do you think the writing of your signature might
tend to incriminate you ?
(Witness consulted his counsel.)
The Chair:man. Do you honestly believe that ?
Mr. Maloney. I do.
The Chairman. Proceed, Mr. Counsel.
Senator Goldwater. Mr. Malone}^, were you campaign chainnan
for William Langley in 1954?
(The witness consulted his counsel.)
Mr. Maloney. I refuse to answer that question and invoke the fifth
amendment.
The Chairman. Are there any further questions at the moment?
Mr. Kennedy. Just while Mr. Maloney is here, we have an affidavit
and material to be put in the record at this time.
Mr. Chairman. Do you want to read it in the presence of the
witness.
Mr. Kennedy. Yes.
The Chairman. Do you want to interrogate him about it?
Mr. Kennedy. I do not think it will be necessary.
The Chairman. The Chair will read the affidavit and it may be
that some member of the committee would wish to question Mr. Ma-
loney on it.
I. Rita Marie Prasch, residing at 716 39th Avenue, Seattle, Wash., having been
(Italy sworn on my oath, do voluntarily depose and say that :
I was employed by the Western Conference of Teamsters as Frank W. Brew-
ster's private secretary from about ^lay 1954 to about July 19.55. My duties
58 IMPROPER ACTIVITIES IN THE LABOR FIELD
were to act as secretary and receptionist in Mr. Brewster's office, arrange hotel
and travel reservations for him and others at his direction, and purchase the
tickets for their travel.
An air travel card was issued to me by the Western Conference of Teamsters,
and all charges for travel purchased with this card were charged to the Western
Conference of Teamsters. I note from the records presented to me by Lucius
F. Thompson, who has identified himself to me as an investigator, United States
General Accounting Office, that my air travel card was numbered UQ 13110 N
177158.
I have been shown a photostatic copy of two Northwest Airlines transporta-
tion receipts showing the imprint of air travel card No. UQ 13110 N 177158
and which I identify as having been signed by me. I further identify the trans-
portation receipt dated November 30, 1954, as being for the purchase of North-
west Airlines ticket No. 499091 for the use of Tom Maloney to travel from
Seattle to Spokane and return; and I identify the receipt dated December 18,
1954, as being for the purchase of Northwest Airlines ticket No. 31346 for the
use of Tom Maloney to travel from Seattle to Spokane. These tickets were
purchased by me for Tom Malone.v upon instructions from Mr. Brewster.
I remember Tom Maloney as he visited Mr. Brewster at his office several times
while I worked there. He would on occasion come to Mr. Brewster's office
accompanied by John J. Sweeney, former secretary-treasurer of the Western
Conference of Teamsters, and Fred Galeno.
Sometimes he came to the office alone and would talk with Mr. Brewster in
his private office for a few minutes. On occasions when Mr. Brewster was
downstairs in the steamroom, Maloney would leave after I told him where
Mr. Brewster was, and I presume he went to the steamroom to see Mr. Brewster.
During the time I worked for the Western Conference of Teamsters, I was
instructed on a few occasions to arrange transportation for Mel Eisen, a race-
horse trainer, and for Richard Cavallero, who is a racehorse jockey. I pur-
cliased tickets for them with the aforementioned air travel card, charging the
travel to the Western Conference of Teamsters. These tickets were purchased
at the request of Frank Brewster.
I solemnly swear that the foregoing statement dated this 23d day of Feb-
ruary 1957, consisting of one page, has been read by me and that it is true and
correct to the best of my knowledge and belief, so help me God.
It is subscribed and sworn to a notary public on the 23d day of Feb-
ruary, and I cannot make out the name at the moment.
I have just one question, Mr. Maloney. You have heard this affi-
davit read regarding transportation being purchased for you by the
Western Conference of Teamsters by this lady, Mr. Prasch, and that
your transportation vras paid for by the Western Conference of Team-
sters. Do you wish to deny it ?
Mr. Maloney, I stand on my constitutional rights and invoke the
fifth amendment to that question. '
The Chairman, How much transportation has the Western Con-
ference of Teamsters provided you ?
Mr. Maloney. I still stand on my constitutional rights and invoke
the fifth amendment.
The Chairman. \Vliat service were you performing for the team-
sters that entitled you to this consideration?
Mr. ]\Ialoney. I still stand on my constitutional rights and invoke
the fifth amendment.
The Chairman. You do not want to sa}^ anything about it ?
Mr. Malooney. I still stand on my constitutional rights and invoke
the fifth amendment.
The Chairman. That means you do not want to, does it not? I am
giving you the opportunity if you want to explain it. You do not
want to ?
Mr. Rand. I think the recoi'd is clear.
The Chairman. I am trying to make sure it is clear.
IMPROPER ACTIVITIES EST THE LABOR FIELD 59
Mr, Maloney. I stand on my constitutional rights.
Mr. Kennedy. Mr. Chairman, here are the documents showing the
tickets and the Western Conference of Teamsters paying the bills.
These were received from the Western Conference of Teamsters and
also from United Airlines.
They have indications there showing on Northwest Airlines that
the ticket was purchased for Tom Maloney by this travel card, $18.87
for one trip and for the other one similar, $31.35 and here are the
checks.
The Chairman. These are photostatic copies. It is well to state
that the committee has these documents and can we say who secured
those ?
Mr. KJENNEDY. They were sent to us from Seattle and they were
secured by an investigator out there.
The Chairman. Since you have an affidavit to the fact, the Chair
will let these as a group be made a part of the record at the present
time for reference only. They w411 be made exhibit No. 15 for refer-
ence.
(The documents referred to were marked "Exhibit No. 15" for refer-
ence and will be found in the appendix on pp. 362-365.)
The Chair:man. They will not be printed in the record until they
are further identified, but they do correspond with the affidavit just
read.
Mr. Kennedy. Wliile Mr. Maloney is still here, this document that
he did not want to recognize is of some interest in view of the next
witness. Perhaps we can read it in the record.
The Chairman. The document presented to you entitled, "An As-
signment," upon which appears your signature and which you ex-
amined, but which you refused to identify, the Chair will now read :
Know all men by these presents, that I, Thomas E. Maloney, of the city
and county of Spokane, State of Washington, in consideration of $10 and
other valuable consideration, receipt of which is hereby acknowledged, do here-
by assign to J. P. McLaughlin, of 906 First Avenue, Seattle, Wash., all my
right, title, and interest in a certain conditional sales contract dated Decem-
ber 6, 1949, by and between Larry L. Raizner and Thomas E. Maloney, as ven-
dors and Earl W. Peterson as purchaser.
Said contract being filed with the office of the county auditor of Spokane
County, Wash., being Document No. 921S26A, and said contract being in escrow
in the Washington Trust Co. in the city and county of Spokane, State of Wash-
ington.
In witness whereof, I have hereunto set my hand and seal in the city of
Spokane, State of Washington, on this 29th day of March 1950.
I need not read the acknowledgement. It is acknowledged by
Edard P. Ferris, notary public. I believe I said that a while ago.
That document may have some further significance and, there-
fore, it will be made at present exhibit No. 16 for reference.
(The document referred to was marked ''Exhibit No. 16" for ref-
erence and will be f oimd in the appendix on p. 366. )
Mr. Kennedy. Just let me ask you a few questions about that.
You had an interest at that time, you and Mr. Raizner, in the Maloney
Sport Center of about $10,000.
Mr. Maloney. I refuse to answer that question and invoke the
fifth amendment.
Mr. Kennedy. And you signed that, your interest in that to Mr.
Joseph P. McLaughlin for $10 and other valuable considerations.
80330— 5.7— pt. 1 5
60 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Malonet. I refuse to answer that.
Mr. Kennedy. Will you tell the committee what the other valuable
consideration was ?
Mr. Maloney. I refuse to answer that question and invoke the fifth
amendment.
The Chairman. You may stand aside. You are not excused from
further attendance and you may be recalled, and so await orders
and instructions from the Chair.
Mr. Rand. Does that also preclude the possibility of recall tliis
afternoon ?
The Chairman. He could be recalled this afternoon. Call the
next witness.
Mr, Kennedy. Mr. Joseph McLaughlin.
(Present were Senators McClellan, Ives, Kennedy, McNamara,
Mundt, and Goldwater.)
The Chairman. "Will you be sworn?
Do you 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 truth, so help you God ?
Mr. McLaughlin. I do.
TESTIMONY OF JOSEPH P. McLAUGHLIN, ACCOMPANIED BY
CHARLES E. RAYMOND, COUNSEL
The Chairman. Mr. McLaughlin, will you state your name and
your place of residence and your business or occupation?
Mr. JMcLauCxHlin. Will you repeat that?
The Chairman. Just state your name and your place of residence
and your business or occupation.
Mr. McLaughlin. My name is Joseph McLaughlin. I live in 1903
Crescent Drive, Seattle, Wash. At the present time I am not in
business.
The Chairman. At the present time you are not what ?
Mr. McLaughlin. In business.
The Chairman. Are you employed? Do you have any occupation?
Mr. McLaughlin. I was in business up to the 1st of October.
The Chairman. What kind of business ?
Mr. McLaughlin. Restaurant business.
The Cptairman. Where ?
Mr, McLaughlin. 906 First Avenue, in Seattle, Wash,
The Chairman. Now, Mr. McLaughlin, have you elected to have
counsel present ?
Mr. McLaughlin. Yes ; I have, sir.
The Chairman, Counsel, will you identify yourself, please, sir ?
]Vfr, Raymond, My name is Charles E. Raymond, of the Oregon bar.
The Chairman. Mr. Raymond, I assume that you are licensed to
practice there ?
Mr, Raymond. Yes ; and in the United States Supreme Court. ^
The CiiAiRistAN, We accept your statement about that. You of
course, are familiar with the rules of the committee and you may
appear for the purpose of advising your client with respect to his
legal rights.
Senator Mundt, I would like to have the office address of the
counsel. Is it Spokane or Seattle ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 61
Mr. Raymond, I am a resident of Portland, Oreg.
Senator Mundt. Your office is in Portland, Oreg. ?
Mr. Raymond. Yes. I was prosecutor there until 2 years ago.
The Cii^viKMAX. All right, Mr. Counsel, you may proceed.
Mr. Kennedy. Mr. McLaughlin, you come originally from Cleve-
land, Ohio, do you ?
Mr. McLaughlin. That is right.
Mr. Kennedy. And for how long a period did you live there ?
Mr. McLaughlin. Well, in my early twenties.
Mr. Kennedy. And you moved to where, then ?
Mr. McLaughlin. Springfield, Mass.
Mr. KJENNEDY. Did you serve any time in prison prior to leaving
Cleveland ?
Mr. McLaughlin. I served an indefinite sentence in Mansfield
Reformatory.
Mr. Kennedy. That was the only conviction that you had up to the
time you left Cleveland ?
Mr. McLaughlin. Well, it is a long way back.
Mr. Kennedy. To the best of your recollection.
Mr. McLaughlin. To the best of my recollection, any felony, that
is the only one, like I say.
Mr. Kennedy. Then you went to Springfield, Mass. ?
Mr. McLaughlin. That is right.
Mr. Kennedy. And you stayed there how long ?
Mr. jMcLaughlin. About a year.
Mr. Kennedy. From there you went to where ?
Mr. McLaughlin. Well, I went to New York and got myself a
job going to sea.
Mr. Kennedy. And you went to sea for how long after that?
Mr. McLaughlin. I judge about 10 years.
Mr. Kennedy. What period of time would that be, approximately,
Mr. McLaughlin ?
Mr. McLaughlin. Well, I am 58 years old and I will be 59 in June
and so I must have been around — at the time I was going to sea you
mean ?
Mr. Kennedy. Yes; about that 10-year period, approximately when
was that ?
Mr. McLaughlin. Possibly between 22 or 23 years old and 33 or
something in that neighborhood.
Mr. Kennedy. That would be in the mid-1030's or the twenties ?
Mr. McLaughlin. I would say so ; I was born in 1899.
Mr. Kennedy. About 1925 to 1935 ?
Mr. McLaughlin. About that time.
Mr. Kennedy. Then where did you move to after you finished going
to sea ?
Mr. McLaughlin. I went to sea and I got off the boat on my final
trip
Mr. Kennt;dy. When you finally settled down.
Mr. McLaughlin. On the west coast, in Seattle, Wash.
Mr. Kennedy. You have been in Seattle, and has that been your
headquarters since that time?
Mr. McLaughlin. That is right; with the exception of about 7 or
8 years I was in California.
62 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. You are also known by a name other than Joe Mc-
Laughlin ?
Mr. McLaughlin. Yes, sir.
Mr. KJENNEDT. What is that name ?
Mr. McLaughlin. Joe McKinley.
Mr. Kennedy. And you are also known as Joe McGinley ?
Mr. McLaughlin. I don't think so. The way that came about in
those years the ship would be going out and they were signed up and
they had regulations to go aboard and work on a ship. You would be
down there at signing-up time and if someone didn't show you would
be there and you could go right to work and you could go out on a
trip.
I went aboard with the Alaska Steamship Co. and the ship was sail-
ing out and I was signing the articles and there was a job open. Wlien
it came time for me to sign on to get the job, I didn't have any lifeboat
ticket with me. It was a requirement in order to sign on a passenger
ship. So, one of tlie fellows there by the name of McKinley handed
me his lifeboat ticket and I went ahead and signed on under the name
of McKinley.
Mr. Kennedy. Have you been known in Seattle since that time by
that name ?
Mr. McLaughlin. I worked, I believe, about a year possibly or less,
on that boat and there were 40 or 50 fellows working on the boat and
they came and went. The run was up to Seward, Alaska, and it would
take about a week or about a 3-week trip, less than a month, and so
different fellows quit and they would sign on and what have you.
So, there were quite a number of people, seamen, at that time, who
knew me under the name of ''McKinley" because once I signed on the
ship as "McKinley"
Mr. Kennedy. You were pretty well known as McKinley?
Mr. McLaughlin. At that time I was, and there were an awful lot
of seamen that frequented my restaurant and bar and cocktail lounge,
and those fellows that I had known 25 or 30 years, they still call me
"McKinley."
Mr. KJENNEDY. Wliat business did you go into in Seattle after you
got out or stopped shipping out ?
Mr. McLaughlin. I believe I first went to work at Hileah Cafe in
Seattle. I believe that was the first one, the first place that I worked.
Mr. Kennedy. During this early period of time, did you meet Mr.
Frank Brewster ?
Mr. McLaughlin. Well, possibly some years after I was in Seattle,
I met Frank Brewster.
Mr. Kennedy. How long ago would that have been and how long
have you laiown Mr. Frank Brewster ? For about 20 years ?
Mr. McLaughlin. Something like that, or 15 or 20 years.
]\Ir. Kennedy. Did you ever haA^e any business interests together,
you and Frank Brewster ?
Mr. McLaughlin. No, sir.
Mr. Kennedy. You never did ?
Mr. McLaughlin. I never did.
Mv. Kennedy. He never had an}'' interest in any of your businesses ?
Mr. McLaughlin. No, sir.
Mr. Kennedy. Did }■ ou ever pay him or give him any money directly
or indirectly ?
UVIPROPER ACTIVITIES IN THE K.\BOR FIELD 63
Mr. McLaughlin. No, sir.
Mr. Kennedy. You never did ?
Mr. McLaughlin. I never did.
Mr. Kennedy. You were just friends, is that right ?
Mr. McLaughlin. Well, I don't know whether you would say
friends or acquaintances. Seattle is a small town and if your same
interests might go in one direction, such as horses or you happen to eat
in restaurants, there are certain good restaurants and certain res-
taurants you might frequent, and you run into them, and you get to
know someone.
I feel as though by seeing the man and knowing who he was, and
where he was, and you say, "Hello," and I just don't know how that
hapj^ened. It is a while back to remember now.
Mr. Kennedy. You just got to be friends, is that right? You had
the same interests ?
Mr. McLaughlin. I didn't have the same interests.
Mr. Kennedy. ^Yhiit was the basis of your friendship? Did you
like one another ?
Mr. McLaughlin. No, it wasn't that close. I have never been that
close to Mr. Brewster.
Mr. Kennedy. You never have ?
Mr. McLaughlin. No.
Mr. Kennedy. Have you ever received any funds from the union,
any moneys from the union ?
Mr. McLaughlin. No, sir.
Mr. Kennedy. Has the union ever paid any of your bills ?
]\Ir. McLaughlin. I cannot answer that question.
Mr. Kennedy. You do not know the answer ?
Mr. McLaughlin. I would like to read at this time the reason why
I can't answer it, if I may.
The Chairman. You may read it.
Mr. McLaughlin. I am sorry that I cannot answer that question.
As you know I am under indictment out in Portland, Oreg., on several
gambling and conspiracy charges. My answer would tend to incrimi-
nate me under both Federal and State criminal laws. I, therefore,
claim my constitutional privileges, especially under the 5th amend-
ment and 14th amendment of the Constitution of the United States of
America and section 12 of article I of the constitution of the State of
Oregon.
Mr. Kennedy. Let me ask you this : Prior to the time you went to
Portland, Oreg., had the union ever paid any of your bills?
Mr. McLaughlin. What did you say ?
Mr. Kennedy. Prior to the time you went to Portland, Oreg., in
1954. had the union paid any of your bills?
Mr. McLaughlin. I cannot answer that question on the same
grounds as I gave.
The Chairman. May I ask you a question. Do you honestly believe
that if you answered the question truthfully it would tend to incrimi-
nate you as you say in your statement? You did not say that it might
tend to, you said that it would tend to incriminate you.
Do you honestly believe that, that a truthful answer under oath
would tend to incriminate you or might tend to incriminate j^ou ?
Mr. McLaughlin. I am sorry that I cannot answer that question for
the same reason. As you know I am under indictment in Portland,
64 IMPROPER ACTIVITIES EST THE LABOR FIELD
Ore^.. and several gambling and conspiracy charges are against me,
and my answer might tend or would tend to incriminate m.e, under
both Federal and State criminal laws, and I, therefore, claim my con-
stitutional privileges under the 5th and 14th amendments of the Con-
stitution of the United States of America and section 12 of article I
of the constitution of the State of Oregon.
The Chairman. Let the Chair advise you that I am not asking you
to state anything that might tend to incriminate you. I am simply
asking you about your honest belief and whether you are being honest
with this committee now in giving your testimony under oath, whether
you honestly believe if you told the truth that a truthful answer might
tend to incriminate you.
Mr. McLaughlin. Yes ; I do, sir.
The Chairman. That is all you have to say,
Mr. Kennedy. In that connection, how many counts are you under
indiHment for?
Mr. McLaughlin. About 8 or 0 counts.
Mr. Kennedy. In Portland, Oreg. ?
Mr. McLaughlin. Yes.
Mr. Kennedy. You have been married twice, have you, Mr. Mc-
Laughlin?
Mr. McLaughlin. Yes.
Mr. Kennedy. Your first wife's name was Doroth}^ ?
Mr. McLaughlin. That is right.
Mr. Kennedy. Did she live in Honolulu for a time ?
Mr. McLaughlin. Do you mean after or before or what ?
Mr. Kennedy. During the time you were married to her.
Mr. McLaughlin, No ; not to my knowledge,
Mr, Kennedy. Slie never was there ?
Mr. McLaughlin. The girl was an entertainer and where her work
was — she was an entertainer.
Mr. Kennedy, Is this in Honolulu ?
Mr. McLaughlin. Not to my knowledge.
Mr. Kennedy, Did you ever know she was in Honolulu?
Mr, McLaughlin, From what I can remember back, I have tried to
put as much of those years of my life out of my mind as I can. She
had signed up with a troop in show business for the Orient, That is
all I know in regard to that as far as any other country or being away
from Seattle.
Mr. Kennedy. Were you receiving any income from her at that
time?
Mr. McLaughlin. No, sir.
Mr. Kennedy. You never were ?
Mr. McLaughlin. No.
Mr. K5NNEDY, Any of the money she made during this period of
time.
Mr. JVIoLaughlin. No, sir.
Mr. Kennedy. You were not ?
Mr. McLaughlin. No.
Mr. Kennedy, You talked about selling your home in October of
1956, or selling your business when the chairman was asking you
earlier, is that correct? You sold your business or your home?
Mr, McLaughlin, My business.
IMPROPER ACTIVITIES IN THE LABOR FIELD 65
Mr. Kennedy. What was it that you sold in Seattle?
Mr. McLaughlin. ]\Iy interest in Battersley & Smith.
Mr. Kennedy. Did you have a meeting in connection with that on
the night of October 22, with a Mr. Eichard Mahoney, formerly of the
Seattle Police Department? Do you rememl)er tliat meeting with Mr.
Richard Mahoney ?
Mr. McLaughlin. I remember meeting ]Mr. Mahoney.
Mr. Kennedy. What was that in connection with ?
Mr. McLaughlin. I guess my troubles, just general conversation.
You mean Richard Mahoney ?
Mr. Kennedy. Yes.
Mr. McLaughlin. Yes, that is right.
Mr. Kennedy. What were you talking to him about?
Mr. McLaughlin. I have known the man possibly 25 years.
Mr. Kennedy. Were you talking generally about your troubles ?
Mr. McLaughlin. He was sorry to hear and it was the first I had
seen him for a long time.
Mv. IvENNEDY. Had you ever had any business dealings with him?
Mr. McLaughlin. No, sir.
Mr. Kennedy. What about Mr. Chaffey ? Do you know Mr. Chaffey
who used to be in the Seattle Police Department?
Mr. McLaughlin. He is dead now.
Mr. Kennedy. Did you ever have any business dealings with Mr.
Chaffey?
Mr. McLaughlin. No.
Mr. Kennedy. Did you ever hear of the Hollywood mob ? Did you
ever hear of them ?
Mr. McLaughi.in. The Hollywood mob ?
Mr. Kennedy. Yes.
Mr. McLaughlin. No ; I haven't heard of them.
Mr. Kennedy, Did you know a man by the name of Al Krantz ?
Mr. McLaughlin. Yes.
Mr. Kennedy. Did you ever have any business dealings with Al
Krantz ?
Mr. McLaughlin. No.
Mr. Ivennedy. Who was Al Krantz and how did you happen to
know him ?
Mr. McLaughlin. I met him when I was in the reformatory in
Mansfield, Ohio.
Mr. Kennedy. Did you ever get a job for him?
Mr. INIcLaughlin. Yes ; he went to work for me in the Mecca Cigar
Store and Restaurant.
Mr. Kennedy. You had a business called Battersley & Smith?
Mr. McLaughlin. That is right.
Mr. Kennedy. What was that business ?
Mr. McLaughlin. It is a restaurant, cocktail lounge, and beer bar.
In Washington they didn't have whisky until the last few yeare. It
was a beer parlor at that time and now it is a cocktail lounge. It is
a restaurant and cigar store, what you term a combination store, which
is very popular in Seattle, Wash!, and throughout Washington and
also a licensed card room.
Mr. Kennedy. Did you also have a horse service?
Mr. McLaughlin. We have a ticker tape there that we leased off.
Western Union.
66 IMPROPER ACTIVITIES EST THE LABOR FIELD
]Mr. Kenxedy. What is that ?
]\Ir, McLaughlin. A ticker tape.
Mr. Kj:NJsrEDY. What was the ticker tape for ?
Mr. JNIcLaughlin. All sporting events and what have you. And
liiere are quite a few- of them leased out and they are legitimate.
Mr. Kennedy. Everybody was A^erj^ much interested in sports ?
Mr. McLaughlin. That is right and there are possibly 25 places
toda}- in Seattle, Wash., under the same type of business. You have
!i ticker tape there and you have tlie sporting events and football and
baseball and basketball.
Mr. Kennedy. Would there be some betting there ?
Mr. McLaughlin. I cannot answer that question, I am sorry. As
you know my answer would tend to incriminate me under both Fed-
oral and State criminal laws, and, therefore, I claim my constitutional
])rivileges, especially under the 5th and 14th amendments.
The Chairman. That is the same statement you read before?
Mr. McLaughlin. Yes.
The Chairman. It may be considered read. Proceed.
Mr. Kennedy. I would like to ask you about some more of your
associates ; Mr. Peter O'Donnell, do you know him?
Mr. McLaughlin. Yes, I know Peter O'Donnell.
Mr. Kennedy. How did you know Peter O'Donnell ?
Mr. McLaughlin. We were kids together in Cleveland, Ohio.
Mr. Kennedy. Was he ever in Seattle ?
Mr. McLaughlin. Yes, sir.
Mr. Kennedy. He moved to Seattle and did you sort of pal around
together, tlie five or six of you ?
Mr. McLaughlin. No. Pete O'Donnell came out to Seattle and
later on he moved his family out there and his wife.
Mr. Kennedy. Did he get into any difficulty with the lav>^ out there,
and Avas he ever arrested ?
Mr. McLaughlin. He might have got arrested in prohibition days.
1 am not sure.
yiv. Kennedy. But he was a friend of yours ?
Mr. McLaughlin. We were kids together in Cleveland, Ohio.
]Mr. Kennedy. I am talking about Seattle, now, and was he a friend
of yours in Seattle ?
Mr. McLaughlin. Yes.
Mv. Kennedy. "W^iat about Jake "Fat"' Brown ?
Mr. McLaughlin. Yes, I know him.
Mr. Kennedy. Is he a friend of yours ?
Mr. McLaughlin. He lived right in back of me, in the next street.
Mr. Kennedy. In Seattle ?
Mr. McLaughlin. Yes, and he is not a friend of mine, but he worked
in possibly 10 or 15 places in Seattle that I did.
Mr. Kennedy. What kind of places did he work in ?
Mr. McLaughlin. Combination stores and beer parlors, and he was
mostly in charge of cardrooms.
Mr. Kennedy. He was interested in gambling, was he ?
Mr. McLaughlin. Well, it is not considered gambling out there,
or it is city-licensed cardrooms.
Mr. Kennedy. Did he ever have any difficulty with the law ? Was
he ever arrested ?
Mr. McLaughlin. I don't know.
IMPROPER ACTIVITIES IN THE LABOR FIELD 67
Mr. Kennedy. You do not remember anything about that ?
Mr. McLaughlin. I do not remember anything about that.
Mr. Kennedy. ^Vliat about John A. Earl? Was he a friend of
yours ?
Mr. McLaughlin. Yes; I don't think that I have seen him 5 times
in 5 years or 10 years.
Mr. Kennedy. Back in 1944 and 1946, was he a friend of yours?
Mr. McLaughlin. That is right.
Mr. Kennedy. What did he do? "Wliat washis job?
Mr. McLaughlin. I believe he was either working or associated in a
place that I was interested in called the Mecca Tavern.
Mr. Kennedy. What did he do there for you ?
]Mr. McLaughlin. He worked there.
Mr. Kennedy. Did he ever get into any difficulty? Was he ever
arrested ?
Mr. McLaughlin. I don't think so. I can't recall of him ever being
arrested.
Mr. Kennedy. You cannot remember that, around 1945?
Mr. McLaughlin. I can't remember him getting into any trouble.
He might
Mr. Kennedy. And Herb Hallo well; do you remember him?
Mr. McLaughlin. Herb Hallowell ? I t^lieve I know whom you
are referring to.
Mr. Kennedy. Do you know him ?
Mr. McLaughlin. I think it is 20 years, or 15 or 20 years.
Mr. Kennedy. Do you know if he got into any difficulty ?
Mr. McLaughlin. All I can remember of hira is that he was in the
garage business.
Mr. Kennedy. Wliat about William Perante? Do you know him?
Mr. McLaughlin. Yes ; I know him.
Mr. Kennedy. Did you ever hear that this group all moved together
and were called the Joe McKinley mob?
Mr. McLaughlin. Now, just a minute. Just a minute, Mr. Ken-
nedy. Some of these men that you mentioned — I didn't have a thou-
sand dollars when they owned garages, when they owned different
clubs. You have asked about people that have been in business there
in Seattle. I never heard of a mob, the Joe McKinley mob or Joe
McLaughlin mob. I never heard of any kind of mob or gang in Seattle,
Wash.
Mr. Kennedy. Back in 1944?
Mr. McLaughlin. At any time ; I never heard of any kind of a mob.
Mr. Kennedy. You never organized any kind of a group out there?
Mr. McLaughlin. No. I tried to make a living.
Mr. Kennedy. What was the source of vour income in 1944 and
1946 ?
Mr. McLaughlin. Well, 1946, I would be in Battersby & Smith.
Mr. Kennedy. Is that the only place you got any income in that
period of time?
Mr. McLaughlin. That is right, and other incomes I had from
real-estate investments. Eight now, to be exact here, I would have
to see my income-tax thing to know.
Mr. Kennedy. How long have you known Tom Maloney?
Mr. McLaughlin. About 25 years, I guess ; 20 or 25 years.
IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr: Kenistedy. Was he a friend of Frank Brewster's during this
period of time?
Mr. McLaughlin. Well, I don't know whether I can answer that
question. I heard inferences on the question, but I don't^ — I would
have to feel as though he was a friend of Frank Brewster.
Mr. Kennedy. Frank Brewster?
Mr. McLaughlin. That is right.
Mr. Kennedy. And did you and Tom Maloney, prior to the time
that you came to Portland, Oreg., did you and he go into any kind
of business together ?
Mr. McLaughlin. No: I never did.
Mr. Kennedy. Did you ever have any business transactions with
him?
Mr. McLaughlin. I loaned him some money to go into business.
Mr. Kennedy. What about the Maloney Sport Center? Did you
take over the interests of the Maloney Sport Center?
Mr. McLaughlin. No. To get 1113^ money out of it, I took my note.
When he sold the place, there was so much cash, and he got a note.
I got after him for the balance of my money that he owed, and
he turned the note over to me. He done it in Spokane. I never went
to Spokane or to the bank. He signed his interest in the note over
to me, and with it, as the man that bought the place would make his
monthly payments, it would be sent to me. That is the way I got my
money out of the deal.
Mr. Kennedy. How much money did you have in that ?
Mr. McLaughlin. Well, it was twice. I think first when he came
to see me about putting this place in
Mr. Kennedy. Just approximately how much ?
Mr. McLaughlin. First I had $2,500 and then I think I was in that
far and then 1 had to go for another $1,000.
Mr. Kennedy. So you had about $3,500 ?
Mr. McLaughlin. I think so.
Mr. Kennedy. Did you ever have any interest in any other of Tom
Maloney's projects ?
Mr. McLaughlin. No ; I had no interest in them.
Mr. Kennedy. Anything else that Tom Maloney did ?
Mr. McLaughlin. I don't understand.
Mr. Kennedy. Did you ever have any interest, financial interest,
in any business that Tom Maloney was interested in, or any project
that Tom Maloney was interested in ?
Mr. McLaughlin. I can't recall that I did.
Mr. Kennedy. Do you think it is possible that you might have ?
Mr. McLaughlin. I can't recall.
Mr. Kennedy. Do you think if you thought about it you could
recall ? Do you think you would ever recall ?
Mr. McLaughlin. No ; I can't.
Mr. Kennedy. You could not ever recall, even if you thought?
Mr. McLaughlin. Do you mean putting money in with him in
his businesses ?
Mr. Kennedy. Yes, or in business together.
Mr. McLaughlin. No.
Mr. Kennedy. Wliat?
Mr. McLaughlin. No.
IMPROPER ACTIVITIES IN THE LABOR FIELD 69
Mr. Kennedt. The answer is "No" ?
Mr. McLaughlin. I can't recall any.
Mr. Kennedy. Yon do not think you can recall ?
( The witness conferred with his counsel. )
(At this point. Senator Goldwater withdrew from the hearing
room. )
(Members present at this point: The Chairman, Senators Ives,
Kennedy, McNamara, and Mundt.)
Mr. McLaughlin. Do you mean a straight business ?
Mr. Kennedy. No.
Mr. McLaughlin. Wliat do you mean? The question isn't
The Chairman. Let us have a little order, please.
Mr. McLaughlin. The question I can't get clear, so with it I would
have to claiin the fifth amendment and my constitutional rights.
The Chairman. That is what it means : Did you have any business
relations with him, w^hether it is a mercantile business, or any other
kind of business, some project to take over something and make a
profit out of it? I can go on and talk that way in round figures for
a long time, but you know pretty well what I mean.
Mr. McLaughlin. I cannot answer that question. My answer
would tend to incriminate me under the Federal and State criminal
laws.
The Chairman. That is the same statement ;70u read. Consider
it read again.
Proceed.
Mr. Kennt:dy. You went down to Portland with Mr. Tom Maloney,
did you ?
Mr. McLaughlin. No; I didn't go down to Portland. Let me get
the question right.
Mr. Kennedy. Let me ask it again, then. Did you ever meet with
Tom Maloney down in Portland?
Mr. McLaughlin. I cannot answer that question, on my constitu-
tional rights.
Mr. Kennedy. You feel that because you are under indictment you
cannot answer any questions about that ?
Mr. McLaughlin. I have to stand on my constitutional rights from
the standpoint, like 1 say, I am under 8 or 9 indictments there in Port-
land, Oreg., and possible Federal and State laws. I have to claim my
constitutional privileges under the fifth amendment.
Mr. Kennedy. Let me ask yon this, JVIr. McLaughlin: Is it not a
fact that you went down to Portland, Greg., with Tom Maloney, to
take over certain of the vice there in that city ?
(The witness conferred with his counsel.)
Mr. McLaughlin. What do you mean by vice ?
Mr. Kennedy. Well, gambling, prostitution, after-hour places?
Mr. McLaughlin. That I went down there to take over
Mr. Kennedy. Well, you describe it. What did you do down there ?
Mr. McLaughlin. I cannot answer that question. I stand on my
constitutional rights and privileges.
Mr. Kennedy. Did you go down there to take an interest in vice in
the city of Portland ?
]Mr, McLaughi>in. I cannot answer that question for the same
reason.
70 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Do you know Mr. Clyde Crosby, the international
organizer of the teamsters ?
Mr. McLaughlin. I do.
Mr. Kennedy. What was your relationship with him ?
Mr. INIcLaugiilin. I cannot answer that question. My answer would
tend to incriminate me under the — —
Mr. Kennedy. Do you know Mr. William Langley, the district at-
torney of Multnomah County of the State of Oregon ?
jNIr. McLaughlin. I do.
Mr. Kennedy. Wliat has your relationship been with Mr. William
Langley ?
Mr. McLaughlin. I cannot answer that question. ^Ij' answer
would tend to incriminate me under both Federal and State criminal
laws. I therefore claim my constitutional privileges, specially under
the 5th and 14th amendments of the Constitution of the United
States
The Chairman. Never mind reading it again.
I just want to get this clear. Do you mean that you cannot answer
a question as to your relationship with Mr. Crosby, an official of the
teamsters union, who, I believe, is also an official of the city? You
cannot answer a question regarding 3^our relationship with him with-
out exposing yourself to possible incrimination? Is that what you
are testifying to under oath ?
(The witness conferred with his counsel.)
Mr. McLaughlin. Yes, sir.
The Chairman. I understand you correctly? Is that true with
respect to the district attorney, Mr. Langley, whom you say you know ?
You cannot answer any questions with regard to your associations or
relations with him for the same reason — that if you answered the ques-
tions truthfully, they might tend to incriminate you ?
Mr. McLaughlin. Yes.
The Chairman. Well, I hope Mr. Langley will not feel that way.
Proceed.
Mr. Kennedy. Mr. Chairman, we have another witness who is also
under indictment in the State of Oregon, the city of Portland, whom
I would like to call at this time.
The ChxMrman. All right, ISIr. McLaughlin, you will stand aside for
the present. You are not released from subpena. You will await
the pleasure of the committee, whether it may desire to recall you.
Mr. Kennedy. Mr. James Elkins.
IMembers present at this point : The chairman. Senators, Ives, Ken-
nedy. McNamara, and Mundt.)
The Chairman. You will be sworn, sir.
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. Elkins. I do ; yes, sir.
TESTIMONY OF JAMES B. ELKINS
The Chairman. State your name, your place of residence, and your
present business or occupation.
Mr. Elkins. I am 56 years old. I live in Portland, Oreg.
The Chairman. Portland, Oreg. ?
EVIPROPER ACTIVITIES IN THE LABOR FIELD 71
Mr. Elkins. That is correct.
The Chairsian. I believe you can testify better if you get rid of your
gum.
]Mr. Elkins. Pardon me.
The Chairman. You did not give us your name.
Mr. Elkins. James B. Elkins.
The Chairman. Mr. Elkins, what is your present business or
occupation ?
Mr. Elkins. Well, T still own Service Machine Co., but I am not
doing much right now.
The Chairman. Still own what ?
]Mr. Elkins. Service Machine Co.
The Chairman. Service Machine Co.? Is that a business enter-
prise in Portland ?
]Mr. Elkins. That is correct ; yes.
The Chairman. Mr, Elkins, you have had frequent conferences
with members of the staff, have you, of this committee, regarding the
information that you have ?
Mr. Elkins. Yes, sir ; I have.
The Chairman. You also previously testified, I believe, in possibly
an executive hearing, in an executive session, of the Senate Perma-
nent Investigating Subcommittee?
Mr. Elkins. That is right.
The Chairman. That was sometime in January of this year?
Mr. Elkins. Tliat is correct.
The Chairman. You are, therefore, fully advised with respect to
the nature of this investigation and the information that the com-
mittee seeks to elicit from you ?
oVIr. Elkins. Yes, sir.
The Chairman. With that knowledge, and knowing, too, that you
have the right to counsel, if you desire, when you testify, have you
elected to testify without the benefit of counsel ?
Mr. Elkins. I have.
The Chairman. All right, Mr. Counsel, you may proceed.
Mr. Kennedy. Mr. Elkins, could you first give us a little bit about
your backgroimd ; where you were born ?
]Mr. Elkins. I was born in the State of Texas, in 1901.
]\[r. Kennedy. You lived there for how long ?
Mr. Elkins. Until I was 9 years old.
Mr. Kennedy. You moved then to Arizona ?
Mr. Elkins. That is correct ; yes, sir.
Mr. Kennedy. How long did you live there?
Mr. Ej.kins. Until 1918.
Mr. Kennedy. How much education did you have, Mr. Elkins?
Mr. Elkins. About the sixth or seventh grade.
Mr. Kennedy. You ended your formal education at that time ?
Mr. Elkins. That is correct.
Mr. Kennedy. How long did you live in the State of Arizona,
then ?
Mr. Elkins. WeW, until I was 18 years old, at that time.
Mr. Kennedy. You were 18 when you went there ?
Mr. Elkins. No, when I left there.
:Mr. Kennedy. Were you in any difficulty with the law by the time
you were 18 years old ?
72 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. No, I was not.
Mr. Kennedy. So you left Arizona and you went where, then?
Mr. Elkixs. Salt Lake City, Utah.
Mr. Kennedy. And stayed there how long?
Mr. Elkins. About 2 years.
Mr. Kennedy. And what sort of business were you in at that time ?
Mr. Elkins. Well, I was drivino; a truck, I believe, at that time.
Mr, Kennedy'. Were you in any difficulty at that time ?
Mr. Elkins. No, I was not.
Mr. Kennedy. Then from Salt Lake City, L^tah, you went where?
Mr. Elkins. To Aberdeen, Wash.
]Mr. Kennedy. And stayed there how long?
Mr. Elkins. Not very long.
Mr. Kennedy. Did you get into difficulty there ?
Mr, Elkins. Yes ; I did.
Mr. Kennedy. What was your difficulty ?
Mr, Elkins. Making moonshine.
Mr, Kennedy. And after you left the State of Washington, Aber-
deen— Aberdeen, Wash., did you say ?
Mr. Elkins. Tliat is correct.
Mr. Kennedy. You left and went where ?
Mr. Elkins. Well, I believe I went to Astoria, Oreg., for a short
stay.
Mr. Kennedy. And then where ?
First, how old were you, approximately, at this time?
Mr. Elkins. About between 19 and 20 j'ears old.
Mr. Kennedy. And then ?
Mr. Elkins. I could be oif a year or so.
Mr. Kennedy. That is approximately. That is all right. You went
from there to where?
Mr. Elkins. Back to Arizona.
Mr. Kennedy. xVnd stayed there how long?
Mr. Elkins. To 1936.
Mr. Kennedy. Were you in any difficulty in Arizona?
Mr. Elkins. Yes, sir ; I was.
Mr. Kennedy. What was the first major difficulty or problem that
you had ?
Mr. Elkins. Well, I got 20 to 30 years in 1931 for assault with intent
to kill.
Mr. Kennedy. Assault with intent to kill ?
Mr. Elkins. I believe that is the way it read.
Mr. Kennedy. You received a pardon, did you, after 4 years ?
Mr. Elkins. That is correct.
Mr. Kennedy. You had been in partnership with a policeman at
that time, is that right ?
Mr. Elkins. Well, let's say I was cutting a little money.
Mr. Kennedy. You were cutting a little money with a policeman?
Mr. Elkins. Yes.
Mr. Kennedy. And then you had a plan with him to move mto a
place, and as you came in he started to shoot you, is that right?
Mr. Elkins. Well, I believe he was going to shoot the boy that was
with me, but I shot back.
Mr. Kennedy. You shot back ?
Mr. Elkins. Yes.
IMPROPER ACTWITIES EST THE LABOR FIELD 73
Mr. Kennedy. Did you hit him?
Mr. Elkins. Not bad, no.
Mr. Kennedy. And you were pardoned after 4 years, Mr. Elkins?
Mr. Et.ktns. That is correct. ^Yell, not exactly that way. I was
paroled and then later pardoned, an unconditional pardon.
Mr. Kennedy. And you moved eventually up to the State of
Oregon ?
Mr. Elkins. Portland, Ore^.
Mr. Kennedy. And approximately what year did you come to the
State of Oregon ?
Mr. Elkins. 1936, 1 believe.
Mr. Kennedy. And did you have some difficulty with the law in the
State of Oregon ?
Mr. Elkins. I did ; yes, sir.
INIr. Kennedy. What was that in connection with ?
Mr. Elkins. I picked up a package at the American Express Office
for a friend and I got 15 months in San Francisco for possession of
narcotics.
Mr. Kennedy. And that was in what year ?
Mr. Elkins. 1988.
IMr. Kennedy. And you sei-ved your year then ?
Mr. Elkins. That is correct.
Mr. Kennedy. A year and a day.
Then did you have any difficulty after that ?
Mr. Elkins. Not after that. I had more difficulty before that,
though.
Mr. Kennedy. Approximately how many difficulties?
Mr. Elkins. Well, I don't believe I could say exactly.
Mr. Kennedy. A few ?
Mr. Elkins, Well, a few, 4 or 5.
IMr. Kennedy. Then in the State of Oregon, did j'ou have some other
difficulty?
Mr. Elkins. Yes. I went to pick up two slot machines and got
shot doing it.
Mr. Kennedy. Could you relate to the coimnittee the circumstances
surrounding that ?
Mr. Elkins. Well, my brother owned the slot machines.
Mr. Kennedy. Maybe I can tell it and you say whether it is correct.
Your brother had made an arrangement with a man to pick up two slot
machines (
Mr. Elkins. That is correct.
Mr. Kennedy. And you were supposed to pick them up at night, is
that right?
Mr. Elkins. At midnight.
Mr. Kennedy. And the arrangements had been made with the
owner of the place or the person that ran the place?
Mr. Elkins. The owner, yes.
ISIr. Kennedy. Y^ou did not come at night as you were exi)ect«d to
come ?
Mr. Elkins. That is right.
Mr. Kennedy. Y"ou came early in the morning ?
INIr. Elkins. That is correct.
Mr. Kennedy. Y^ou came in, went to the back, and the man said
the slot machines were in the front?
74 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Elkins. That is correct.
Mr. Kennedy. You picked up the slot machines and started to put
them in the car ?
Mr. Elkins. That is right.
Mr. Kennedy. Will you relate what happened after that?
Mr. Elkins. Well, there were several people standing there on the
porch watching us and one of them hollered at me something that
attracted my attention and I looked around and he was hittnig at
me with a gun, and I turned around and hit him. He was bootlegging,
too, and he had a 15-year-old boy with an old rusty Luger pointing
at me. He starting shooting about that time and shot me through
the side. I am telling the boy that is driving the car "Let's get away
from here," and he said, "He has that thing pointed at me," and I
said, "It is darn funny. He is pointing at you and he is hitting me,"
The Chairman. Let us have order.
Mr. Elkins. So we were arrested and thrown in jail for it.
Mr. Kennedy. Ultimately you were cleared on that?
Mr. Elkins. That is right.
Mr. Kennedy. You were not indicted ?
Mr. Elkins. No ; it was a directed verdict.
Mr. Kennedy. Up to 1956 you had no other difficulties, is that
right?
Mr. Elkins. That is correct.
Mr. Kennedy. You w^ere married once and were separated from
your wife?
Mr. Elkins. That is correct.
Mr. Kennedy. And then you married again and your second wife
died, is that right?
Mr. Elkins. That is right.
Mr. Kennedy. And you married your present wife about 4 years
ago?
Mr. Elkins. That is correct.
Mr. Kennedy. Just some time after your wife died of cancer ?
Mr. Elkins. Two years after my wife died.
Mr. Kennedy. You have one child, do you ?
Mr. Elkins. One daughter, yes.
Mr. Kennedy. And they both live in Portland ?
Mr. Elkins. In Portland, Oreg.
Mr. Kennedy. And you have not had difficulty with the law from
that time, the early 1040's, until this time?
Mr. Elkins. Until 1956.
Mr. Kennedy. During the period of the war, did you work with the
Intelligence Service of the Navy Department?
Mr. Elkins. I did ; yes, sir.
Mr. Kennedy. And you worked amongst certain cells of Japanese
that were assisting Japan at that time?
Mr. Elkins. That is correct.
Mr. Kennedy. Mr. Chairman, I talked to the commander in charge
of intelligence for the Navy in the State of Oregon, who was in charge
there during the war; and he said that Mr. Elkins and his brother
performed some considerable services for the Navy during the period
of 1942, 1943, and 1944.
The Chairman. All right.
Mr. Kennedy. You are presently under indictment; are you not?
IMPROPER ACTIVITIES IN THE LABOR FIELD 75
Mr. Elkins. Either 24 or 26.
Mr. Kennedy. Twenty-four or twenty -six counts ?
Mr. Elkins. Yes. I am not sure which. Either 24 or 26.
Mr. Kennedy. You are under indictment by the State attorney
general ; is that rij^ht ?
Mr. Elkins. That is correct.
Mr. Kennedy. How many counts there, approximately?
Mr. Elkins. It is either 14 or 16.
Mr. Kennedy. Fourteen or sixteen counts?
]Mr. Elkins. That is right.
Mr. Kennedy. That was after you testified on this matter?
Mr. Elkins. That is right.
Mr. Kennedy. And you received the greatest number of indict-
ments ? You were indicted more than anyone else ?
Mr. Elkins. I think I had them all by about six.
Mr. Kennedy. Then the district attorney who you testified against
indicted you ?
Mr. Elkins. That is correct.
Mr. Kennedy. How many counts were you indicted for on that?
Mr. Elkins. It is either i or 2. That was the largest bail.
Mr. Kennedy. $12,000 bail on that?
Mr. Elkins. That is right.
Mr. Kennedy. You have been indicted by the Federal Government ;
is that correct ?
Mr. Elkins. That is correct.
Mr. Kennedy. On nine counts ?
Mr. Elkins. That is correct.
Mr. Kennedy. That has happened in the last 2 or 3 weeks?
Mr. Elkins. Yes ; since I was here.
Mr. Kennedy. Since you testified before the Investigating
Committee ?
Mr. Elkins. Yes.
Mr. Kennedy. And that was also for wiretapping?
Mr. Elkins. That is correct.
Mr. Kennedy. Nine counts?
Mr. Elkins. Yes.
Mr. Kennedy. So it makes a total of about 24 or 26 counts ?
Mr. Elkins. That is correct.
Mr. Kennedy. Mr. Elkins, can you tell the committee how you
first met Mr. Tom Maloney ?
Mr. Elkins. "VVell, it was in regard to getting some of my em-
ployees in the union, in the teamsters union.
Mr. Kennedy. Going back a little bit, what were your businesses
during the 1950's, for instance ?
Mr. Elkins. I was one of the men that were operating pinballs.
Mr. Kennedy. You operated pinballs, and you also had some other
machine shop, did you ?
Mr. Elkins. That is right. I had the Service Construction Co.
at that time, too.
Mr. Kennedy. Did you also finance after-hours places ?
Mr. Elkins. That is correct. And gambling.
Mr. Kennedy. And gambling places?
Mr. Elkins. That is right.
89330— 57— pt. 1 6
76 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. You financed them ?
Mr. Elkins. That is correct.
Mr. Kennedy. You have been doing that for a number of years?
Mr. Elkins. That is correct.
Mr. Kennedy. The pinball operation in Portland ; is that a legiti-
mate operation?
Mr. Elkins. No. It is gambling, but it is dressed up a little bit.
Mr. Kennedy. Gambling dressed up. Did you have some pinball
machines ?
Mr. Elkins. Yes ; I did.
Mr. Kennedy. During the period of about 1954, did you want to
get your machines into the labor temple ?
Mr. Elkins. Yes. Either late 1953 — I believe that was it.
Mr. Kennedy. Late 1953 or early 1954 ?
Mr. Elkins. That is right.
Mr. Kennedy. You wanted to get your machines in the labor
temple ?
Mr. Elkins. That is right.
Mr. Kennedy. In order to do that, your men would have to be
members of the labor union ; is that right ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did you try certain labor unions and see if you
could get them in ?
Mr. Elkins. I believe my brother and my employees tried the elec-
trical union.
Mv. Kennedy. The electrical union would not let them in ?
Mr. Elkins. No ; they would not let me operate.
Mr. Kennedy. Did you find that many of the unions or nearly
all unions are against organized gambling ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did you learn that possibly the teamsters would
allow you in?
Mr. Elkins. I did ; yes.
Mr. Kennedy. In a trip that you made up to Seattle, did you hear
about Mr. Tom Maloney ?
Mr. Elkins. Yes ; I did.
Mr. Kennedy. What did you learn about Tom Maloney ?
Mr. Elkins. That he was very close friend of Frank Brewster, and
that he could possibly get mine in. They had not put in any applica-
tion to get in, but I was told that Tom Maloney could assist me in
getting them in.
Mr. Kennedy. And you thouglit that there would be difficulty unless
you got the help of Tom IMaloney ?
Mr. Elkins. That is right.
Mr. Kennedy. Did you contact Tom Maloney then ?
Mr. Elkins. Yes, sir ; I did.
Mr. Kennedy. Did you talk to him out at the racetrack?
Mr. Elkins. That is correct.
Mr. Kennedy. What did he say to you at that time ?
Mr. Elkins. He thought it would be a good idea for him to make
a trip to Portland; and I told him to come ahead, that I would pay
the expenses.
Mr. Kennedy. Did he tell you at that time about any of the con-
tacts he had with the teamsters ?
IMPROPER ACTWITIES IN THE LABOR FIELD 77
Mr. Elkins. Yes. He was very close to John Sweeney and Frank
Brewster.
The Chaieman. Close to whom ?
Mr. Elkins. Frank Brewster and John Sweeney.
Mr. Kexxedy. And John Sweeney at that time was international
organizer of the teamsters in Portland, Oreg. ^
Mr. Elkins. That is correct.
Mr. Kennedy. Did he then make a trip down to Portland ?
Mr. Elkins. He did.
Mr. Kennedy. And did he take you over and introduce you to John
Sweeney ?
Mr. Elkins. That is correct.
]\Ir. Kennedy. Were youi- men then taken in the union ?
Mr. Elkins. That is right.
Mr. Kennedy. Was there any discussion at that time about wages,
hours, or conditions with the labor union, or with any labor union
official ?
Mr. Elkins. No.
Mr. Kennedy. They just were taken into the union; is that right?
Mr. Elkins. That is right.
Mr. Kennedy. On that trip, you paid Mr. Maloney's expenses?
Mr. Elkins. That is right.
Mr. Kennedy. Did Maloney introduce you to any other teamster
official ?
Mr. Elkins. Yes. Frank Malloy.
Mr. Kennedy. Frank Malloy ? What was his position at the time ?
Mr. Elkins. He was just with the teamsters is all I know.
Mr. Kennedy. Did Tom Maloney say anything to you about the
type of businesses that you were in in Portland ?
Mr. Elkins. Well, yes. He said he understood I knew my way
around. He stiid he was having it a little rough and tliat he could
be a great deal of assistance to me and the teamsters if I could help
him — I believe he said — get a piece of one ])lace.
Mr. Kennedy. He knew the kind of businesses you were in, boot-
legging and so forth ?
Mr. Elkins. Bootlegging and gambling, that is right.
Mr. Kennedy. Did he tell you that he had been in those kind of
businesses himself ?
Mr. Elkins. That is right.
Mr. Kennedy. And that he would like to get a piece of a place
down there ?
Mr. Elkins. That is right.
Mr. Kennedy. That is, in Portland. Did he mention to you about
his contact with the teamsters ?
Mr. Elkins. Yes. He introduced me to John Sweeney and told
me to cultivate that introduction, that John Sweeney could do me a
lot of good.
Mr. Kennedy. That John Sweeney could do you a lot of good ?
Mr. Elkins. Yes.
Mr. Kennedy. Did he say that he was working at that time in
Seattle at the racetrack ?
Mr. Elkins. That is right. And Spokane.
Mr. Kennedy. In connection with John Sweeney, I might say that
he was at that time international organizer of the teamsters. He was
78 IMPROPER ACTIVITIES IN THE LABOR FIELD
then promoted in mid- 1954, I believe, to be secretary- treasurer of
the teamsters up in Seattle.
Mr. Elkins. That is right.
Mr. Kennedy. And he has since died. I think it is about 6 months
ago.
Mr, Elkins. That is correct.
Senator Mundt. Mr. Chairman, I got a little way behind. I would
like to ask a coupie of questions to bring me up to date.
No. 1, why was it that you wanted to get your men into the union?
You did not make that clear,
Mr. Elkins. I had pinball machines in the labor temple and my
men couldn't service those machines without belonging to some union.
Senator Mundt. Union officials had told you that they could not
service the machines in the temple unless they belonged to the union ;
is that right ?
Mr. Elkins. Well, that is just about it, yes.
Senator Mundt. So in order to keep your machines there, that is
why you wanted to get in ?
Mr. Elkins. That is right.
Senator Mundt. The second question: You said that when your
men did get in eventually, they made no arrangements concerning
hours or labor conditions. Did they arrange to pay weekly or
monthly dues ?
Mr. Elkins. Yes, they paid their dues.
Senator Mundt. They had to pay their dues ?
Mr. Elkins. In cash.
Senator Mundt. Plus an initiation fee ?
Mr. Elkins. Yes.
Senator Mundt. And did you have to pay Mr. Maloney anything
beyond and above his expenses to make this deal for you ?
Mr. Elkins. No. I didn't consider that I did.
Senator Mundt. What motive did you think Mr, Maloney had at
the time, to go to another city and to make these arrangements, if
all he got out of it was just his out-of-pocket expenses ?
Mr, Elkins. Well, he wanted to be friendly. He seemed to be
friendly. It wasn't unusual for people to do a favor like that. A
little later on, the next trip, he didn't ask me for anything that trip,
the next trip down he asked me for $450.
Mr. Kennedy. Going back to the first trip, did he say to you any-
thing about his friendship with Frank Brewster ?
Mr. Elkins. Yes.
Mr. Kennedy. How did he describe it ?
Mr. Elkins. That he was very close, and that it wasn't just the
teamsters, it was the garbagemen and various others that thev con-
trolled, and that they had awful strong political connections.
Mr, Kennedy, Did he tell you that he could use the taxicab drivers
and the garbage collectors ?
Mr. Elkins, That is right,
Mr, Kennedy. That they would be put at your disposal if you felt
you needed them ?
Mr. Elkins. That is right,
Mr, Kennedy. And he told you that he was very close to Frank
Brewster ?
Mr. Elkins. That is right.
IMPROPER ACTIVITIES IN THE LABOR FIELD 79
Mr. Kennedy, Did he say anything about what he could do as far as
John Sweeney was concerned '?
Mr. Elkins. Yes, that he was close to Jolni Sweeney, but that Frank
Brewster would order John Sweeney to do anything he wanted him
to do.
Mr. Kennedy. That Tom Maloney wanted to be done ?
Mr. Elkins. That is right.
Mr. Kennedy. And he told you that you should cultivate John
Sweeney ? Is that right ?
Mr. Elkins. That is right.
Mr. Kennedy. He then returned to Seattle ? It was a quick trip ?
Mr. Elkins. That is right.
Mr. Kennedy. Did he then come down again and call you and say
he wanted to come down again ?
Mr. Elkins. That is right.
Mr. Kennedy. At that time, did you have a luncheon with John
Sweeney ?
Mr. Elkins. Yes. I had had maybe more than one by that time,
by the time he come down.
Mr. Kennedy. He came down two or three times during this
period ?
Mr. Elkins. That is right.
Mr. Kennedy. And on either the second or third trip did he ask
for $500?
Mr. Elkins. I believe it was the second trip.
Mr. Kennedy. He wanted to borrow $500 from you ?
Mr. Elkins. That is what he said, but I took it that it was more
or less of a gift. I gave him two then and told him I would send the
other over to the teamster hall, because I wanted to see if John Sweeney
was aware of it.
Mr. Kennedy. You wanted to see if John Sweeney knew he was
getting money?
Mr. Elkins. That is right.
Mr. Kennedy. So you gave him the $200 and sent the $300 over ?
Mr. Elkins. To a different person, yes.
Mr. Kennedy. Can you tell the committee who you sent the money
to?
Mr. Elkins. Tom Maloney, and then I called John Sweeney and
told him I had made a mistake and loaned Tom $500 but I had given
him two and sent three to another unionman, and asked him to see if
he couldn't straighten it out.
Mr. Kennedy. You wanted to establish, thereby, that John Sweeney,
the head of the teamsters there, knew that you were sending money or
giving money to Tom Maloney; is that right?
Mr. Elkins. That is right.
Mr. Kennedy. Wliile you were down there, did Mr. Maloney ask
for you to do a favor for him in the city of Seattle?
Mr. Elkins. Well, not that trip, no.
Mr. Kennedy. On one of the trips, one of these two or three trips ?
Mr. Elkins. Yes, he did.
Mr. Kennedy. What was the favor he wanted done?
Mr. Elkins. Well, he wanted to open up one location in Seattle.
Mr. Kennedy. When you talk about location
80 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. Well, he wanted to open up one gambling and boot-
leg place in Seattle, in partners with someone. I don't believe he
said who. Maybe it was a colored person. He asked me to speak
to an official that I Iviiew of there.
Mr. Kennedy. He asked you to speak to the chief of police ?
Mr. Elkins. That is right.
Mr. Ivennedy. Did you speak to the chief of police?
Mr. Elkins. I did. But I don't want to give any idea that I ever
give him any money, because I haven't.
Mr. Kennedy, But you spoke to the chief of police?
Mr. Elkins. That is right.
Mr. Kennedy. The chief of police, what did he say about Tom
Maloney ?
Mr. Elkins. He said he was pretty much on messing up people
who done him favors, but he would see what he could do.
Mr. Kennedy. He allow^ed them to open one place?
Mr. Elkins. He either allowed it or arranged for him to open
one, yes.
Mr. Kennedy. Did you later leam that Tom Maloney turned
around and opened two places ?
Mr. Elkins. I believe that either he or someone else told me that
he opened one, and wanted to run the town or something, and he
closed that place.
Mr. Kennedy. The chief of police to whom you spoke then closed
both of the places down ?
Mr. Elkins. That is right.
Mr. Kennedy. With the understanding or feeling that Tom Ma-
loney had overstepped his bounds going into the second place ?
Mr. Elkins. Yes.
Mr. Kennedy. Did Maloney get in touch with you during this
period of time about coming up to Seattle and meeting his friends?
Mr. Elkins. Yes. On one occasion he came down and said to
me that he knew I had put $50,000 into a campaign, a campaign in
Seattle.
Mr. Kennedy, You were alleged to have put $50,000 into the cam-
paign of Mr. Pomeroy, who ran for mayor of Seattle?
Mr. Elkins. That is correct,
Mr. Kennedy. And for that reason, Tom Maloney thought you
were a very important figure in the State of Washington?
Mr. Elkins, That is right.
Mr. Kennedy. So you had this conversation regarding the chief of
police, and then he asked you to come up to meet his friend, Mr, Joe
McKinley ?
]\f r, Elkins. That is right.
Mr. Kennedy. Did you go up to meet Mr, Joe McKinley ?
My. Elkins. Yes, I went to see Joe.
Mr. Kennedy. Where did you meet Joe McKinley ?
]Mr. Elkins. At the Olympic Hotel.
Mr. Kennedy. The Olympic Hotel ?
]Mr. Elkins, That is right.
The Chairman, Are you speaking of the man who testified here a
moment ago ?
Mr. Elkins, That is correct,
Mr, Kennedy, How did you get along ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 81
Mr. Elkixs. We didn't get along too good. AVe sparred and double-
talked each other.
Mr. Kennedy. How had Malonej' described McKinley ?
Mr. Elkins. I beg your pardon ?
Mr. Kennedy. Ilow had ]Maloney described McKinley or did you
know of Joe McKinley already ?
Mr. Elkins. I had heard of Joe ]S[cKinley. Everybody heard of
Joe McKinley in my business.
Mr. Kennedy. Was he in the same business as you were in, except
he was in Seattle ?
Mr. Elkins. Yes.
Mr. Kennedy. Did vou ever hear that evervthing in Seattle was
under him ?
Mr. Elkins. Well, formerly had been, yes.
Mr. Kennedy. Was that durhig the 1940's ?
Mr. Elkins. Yes.
Mr. Kennedy. He had run this part of Seattle ?
Mr. Elkins. That is about right;
Mr. Kennedy. Bootlegging and gambling, that had been under Joe
McKinley ?
Mr. Elkins. That is what I understood.
Mr. Kennedy. AVlien the two of you got up to the hotel, the hotel
room in the Olympic Hotel, were there free discussions about what
you were going to do ? What was the purpose of the conversation ?
Mr. Elkins. About opening up some type of gambling or horse
book or something in Seattle. I told him I knew what would happen
to him if he came to Portland, and I pi-esume the same thing would
happen to me if I went to Seattle, and that I imagine there wasn't
much point in talking, and he said that was his sentiments on it, too.
Mr. Kennedy. So the conversation was not very satisfactory ?
Mr. Elkins. No. It didn't last over 80 minutes.
Mr. Kennedy. You went back to Portland ?
Mr. Elkins. That is right.
Mr. Kennedy. During this period of time, after you went back to
Portland, and now we are in the beginning of 1954, I guess, as far as
dates are concerned — is that about right?
Mr Elkins. That is about right. I want to clear one point. On
this Pomeroy campaign, I was in Baltimore at the time, at the time
of Pomeroy 's campaign.
Mr. Kennedy. So this story of you contributing $50,000 was not
true?
Mr. Elkins. No, it was not true.
Mr. Kennedy. You were here with your wife ?
Mr. Elkins. That is right
Mr. Kennedy. You came back to Portland. Were you meeting
with Mr. John Sweeney of the teamsters when you got back here?
Mr. Elkins. That is right.
Mr. Kennedy. Did you feel that there was anything peculiar about
the head of the teamsters wanting to meet with you ?
Mr. Elkins. Yes. I asked John Sweeney why he was romancing a
man in my business, and he said "Well, no particular reason," only he
liked to be friends with people in my type of business, that the team-
sters was a powerful organization, politically, and he understood I had
put up quite a bit of money politically now and then and there wasn't
82 IMPROPER ACTIVITIES IN THE LABOR FIELD
any use to wasting it, that we could reach some kind of an agreement
on it.
Mr. Kennedy. What kind of an agreement ?
Mr. Elkins. Both back the same horse, or the same man.
Mr. Kennedy. Did he say anything about Tom Maloney during
this period ?
Mr, Elkins. Yes. He said he would like to see Tom get a piece of
the joint, but he didn't want him to operate it himself.
Mr. Kennedy. He wanted you to give Tom Maloney a piece of one
of your joints?
Mr. Elkins. Well, yes, that is correct.
Mr. Kennedy. Why did he not want Tom Maloney to operate his
own place?
Mr. Elkins. He didn't give me a reason on that. It didn't sound
right to me, but he said he thought Tom was too close to the teamsters.
Mr. Kennedy. He felt he was too close to the teamsters?
Mr. Elkins. That is right.
Mr. Kennedy. During this period of time, was there a primary
going on, as far as the district attorney was concerned, between Mc-
Court and Langley ?
Mr. Elkins. Yes, the primary was going on at that time.
Mr. Kennedy. The incumbent was McCourt and Langley was try-
ing to get the nomination for the Democratic Party ?
Mr. Elkins. That is right. He did get the nomination.
Mr. Kennedy. McCourt had his nomination and then Langley had
his nomination, is that right ?
Mr. Elkins. That is right.
Mr. Kennedy. McCourt was a Republican and Langley was a
Democrat ?
Mr. Elkins. Yes.
Mr. Kennedy. Did Sweeney say anything to you about the type of
places you were running ?
Mr. Elkins. Yes.
Do you mean did he know what type of places I was running?
Mr. Kennedy. Yes. Did he express any feeling about those kind
of places ? What did he say about them ?
Mr. Elkins. He said he was all for it, that he didn't want anything
out of it, or he didn't want anyone but Tom to benefit by it, and for me
not to worry about them cutting in on my earnings.
Mr. Kennedy. He said he was not pei*sonally interested himself?
Mr. Elkins. That is correct.
Mr. Kennedy. Did he say that he thought it would be a good idea
to have a few of those places open ?
Mr. Elkins. That is correct.
Mr. IvENNEDY. You wei'e also introduced to Mr. Clyde Crosby, is
that right?
Mr. Elkins. That was right after the primaries in 1954.
Mr. Kennedy. Right after the primaries ?
Mr. Elkins. That is correct.
Mr. Kennedy, You were introduced to him out at the airport?
Mr. Elkins. That is correct.
Mr. Kennedy. Did Sweeney say anything to you at that time about
meeting Langley and getting together with him. Langley who had
just won the nomination?
IMPROPER ACTIVITIES IN THE LABOR FIELD 83
Mr, Elkins. He asked me to set up an appointment with Bill Lang-
ley, I believe, for the next day at 10 o'clock in John Sweeney's office.
Mr. Kennedy. Had you known Bill Langley ?
Mr. Elkins. Yes, 1 had known Bill Langley for several years.
Mr. Kennedy. Were you ever in business together with Bill
Langley ?
Mr. Elkins. Yes, we were in partners in the China Lantern.
Mr. Kennedy. The China Lantern?
Mr. Elkins. That is correct.
Mr. Kennedy. What kind of a place was the China Lantern?
Mr. Elkins. It was a restaurant, a bar and a gambling place.
Mr. Kennedy. A gambling place ?
Mr. Elkins. That is correct.
Mr. Kennedy. Were all its operations completely legal?
Mr. Elkins. In the China Lantern ?
Mr. Kennedy. Yes.
Mr. Elkins. No.
The Chairman. Was that before he became prosecuting attorney
or district attorney ?
Mr. Elkins. That is right.
The Chairman. So you had known him in a business way in the
same business you were in prior to the time he was elected ?
Mr. Elkins. That is correct.
Senator McNamara. I was interested in the statement that the wit-
ness made regarding entering into an agreement to put his employees
into the teamsters union.
How many employees did you have, approximately ?
Mr. Elkins. I think there were five of them.
Senator McNamara. Five ?
Mr. Elkins. I believe that is correct.
Senator McNamara. The whole operation only required five people ?
Mr. Elkins. That is right. There might have been 6, but I think
it is 5.
Senator McNamara. And you said there was no arrangement made
about wages or hours, but you did agree to put all of your employees
into the union, is that right ?
Mr. Elkins. No. I just gathered up a bunch of employees and
sent them over there.
Senator McNamara. It was not all of them but part of them?
Mr. Elkins. Well, practically all of them. There was nothing said
about all of them or part of them. The primary reason was the ones
that were going to service the machines in the labor temple.
Senator McNamara. You entered into some sort of agreement.
Was this a written agreement? You did not sign any contract that
provided that 5'ou would employ all union help or anjiihing ?
Mr. Elkins. No.
Senator McNamara. That is the point I wanted to make, Mr. Chair-
man.
The Chairman. Proceed, Mr. Counsel.
Mr. Kennedy. He talked tx) you about Bill Langley — John Sweeney
did?
Mr. Elkins. That is correct.
Mr. Kennedy. And he introduced you to Clyde Crosby who was
also out at the airport at the same time ?
84 IMPROPER ACTR'^ITIES IN THE LABOR FIELD
Mr. Ei.KiNS. That is right.
Mr. Kj:NNEDr. Did you say you would get in touch with Langley ?
Mr. Elkixs. I did.
Mr. Kj:nnedy. Did you call Langley ?
Mr. Elkixs. I did.
Mr. Kennedy. Did you make an appointment for him ?
Mr. Elkins. The next morning at 10 o'clock.
Mr. Kennedy, To see whom i
Mr. Elkins. John Sweeney.
Mr. Kennedy. Did he keep that appointment?
Mr. Elkins. He did.
Mr. Kennedy. Were 3^ou there?
Mr. Elkins. No.
Mr. Kennedy. Did you receive a report on that ?
Mr. Elkins. Yes. John Sweeney called. I went to lunch with
Sweeney, and my brother went with him, and he said he talked with
Bill Langley and told him to come back in a week or 10 days, and he
would have the green light from Brewster on it by that time.
The Chairman. AVho said he would have the green light from
Brewster 'i
Mr. Elkins. John Sweeney.
The Chairman. He had talked to Langley ?
Mr. Elkins. He had talked to Langley, and he told Langley for him
to contact John Sweeney in a week or 10 days and he would have the
green light on getting him a little finance and the support of the
teamsters in a week or 10 days.
The Chairman. That was after he got the nomination but before he
had been elected?
Mr. Elkins. That is correct.
The Chairman. He still had his election campaign coming otf ?
Mr. Elkins. That is correct. It is 6 months between the primaries
and the general election.
The Chairman. So a contact was made with Langley by the team-
sters prior to the time he was elected and during the time of the
campaign against his Republican oj^ponent ?
Mr. Elkins. That is right.
The Chairman. All right.
Mr. Kennedy, Did Langley indicate at that time or did Sweeney
indicate to you what Langley was going to do for you ?
Mr. Elkins. He just told me that he wanted Langley to know
who was resp(msible for him, in back of him. and when he got the
green light from Brewster he would call me and have me set up
another appointment.
(At this point, Senator McNamara withdrew from the hearing
room. )
Mr. Kennedy, What was it that you wanted from the district
attorney during this period of time? What was it you would want,
a person in your business?
Mr. Eekins, Well, not a devil of a lot. You would want to know
when there was a warrant out to raid a place, or that they wouldn't
abate theuL
Mr. Kennedy. Would you explain what abating a place means?
Mr. Elkins. If a place was arrested twice, the fine didn't amount to
anything, but some of those places you have to take a year's lease on.
IMPROPER ACTIVITIES IN THE LABOR FIELD 85
If tliey abated it, they padlocked it for a year after the second arrest.
The former D. A. had been doino- that.
The CriAiKMAX. Do I understand from that that you were interested
in not getting padlocked ?
Mr. Elkins. That is correct.
The Chairjian. That is your primary interest in Mr. Langley, to
make arrangements about that ?
Mr. Elkins. That is right.
The Chairmax. Did you succeed in making such arrangements ?
Mr. Elkins. I did ; yes.
The Chairman. All right.
Mr. Kennedt. You succeeded at that time, or was that agreement
or understanding made at a later time ?
Mr. Elkins. Much later. Months later.
Mr. Kennedy. Did the teamsters then become active supporters of
Mr. Langley at that time ^
Mr. Elkins. No, they did not.
Mr. Kennedy. Mr. Langley did not follow up on his appointments,
or what happened ?
Mr. Elkins. John Sweeney called me and told me to get Langley
over there, and I was mad at Langley, so
Mr. IvENNEDY. Why were you mad at Langley ?
Mr. Elkins. Well, I thought he had put a bug on his phone when
my brother was talking to him.
Mr. Kennedy. Your brother was talking at that tune about Al
Winters, is that right?
Mr. Elkins. I believe that is correct.
Mr. Kennedy. And JNIr. Al Winters has an interest similar to yours
in the city of Portland ?
Mr. Elkins. Formerly had, I would say.
Mr. Kennedy. He is now in Las Vegas ?
Mr. Elkins. That is correct.
Mr. Kennedy. And you thought that Langley had put a tape re-
corder on the phone when your brother was denouncing Al Winters ?
Mr. Elkins. Well, that was what my brother had told me, and I
felt that he must know what he is talking about.
Mr. Kennedy. So you were not too anxious to support Langley at
that time?
Mr. Elkins. Xo, I had been in partners with him before.
Mr. Kennedy. You what?
Mr. Elkins. I had been in partners with him once before. He was
running for D. A. and quit to run a football book right in the middle
of his campaign, and I thought he might do it again.
Mr. I>j3nnedy. Did you ultimately decide during this period of time
that because your brother thought that Langley would be better than
McCourt, because Langley's position on abatements was better than
McCourt, that you two had better back Langley ?
Mr. Elkins. That is right.
Mr. Kennedy. Did someone come to you with a bill for $1,280 for
Langley, for a printing bill?
Mr. Elkins. Yes. I wouldn't say they come to me. They called
us to them and told us that Bill Langley and Mr. Hanzen in the Con-
gress Hotel
86 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy, Who is that?
Mr. Elkins. Mr. Henry Hanzen.
Mr. Kennedy. Mr. Henry Hanzen, an attorney. Mr. Henry Han-
zen was the campaign manager of Langley ?
Mr. Elkins. No. He was the man behind the scenes. He was the
man that Mr. — Mr. Hanzen defended the abortionists.
Mr. Kennedy. He was the attorney for the abortionists ?
Mr. Elkins. That is right. And Mr. Hanzen was the man behind
the scenes, but not out publicly.
Mr. Kennedy. Was he the one that was chiefly in back of Mr.
Langley's campaign.
Mr. Elkins. Well, he was one of them. There were others.
Mr. Kennedy. Had the majority of the money for Mr. Langley's
campaign during the primary come through Mr. Hanzen and his
clients, the abortionists?
Mr. Elkins. In the primaries; yes.
Mr. Kennedy. And then he received $500 in addition to that from
another individual?
Mr. Elkins. To open two houses of prostitution.
Mr. Kennedy. To allow two houses of prostitution to continue to
exist ?
Mr. Elkins. That is right.
Mr. Kennedy. This man had already run houses of prostitution?
Mr, Elkins. Well, he owned the property, and he had been in trouble
before about it. He owned several roominghouses that was operated
in that type, and they had been closed by Mr. McCourt and some of
them abated. That is why this gentleman was mad at John McCourt.
Mr. Kennedy. That was Joe Snitzer ?
Mr. Elkins, Joe Snitzer,
Mr, Kennedy. How do you spell his name?
Mr. Elkins. S-n-i-t-z-e-r, I believe.
Mr. Kennedy. That was where the backing had come from up to
this time?
Mr, Elkins, That is right.
Mr. Kennedy. Did you meet with Mr. Hanzen and Mr. Langley?
Mr. Elkins. In the Congress Hotel.
Mr. ICennedy. Wliat was decided at that meeting ?
Mr, Elkins. Well, Bill said that he was a dead duck if he didn't
get $1,280 to ipAj for some literature.
Mr. Kennedy. So did you tell them that you would be willing to
go to see Clyde Crosby ?
Mr, Elkins. Well, not at that meeting. We had several meetings
within a few days there, and then we went to Salem, in the meantime.
I don't know whether I brought the question up or my brother, that
the teamsters had been wanting me to get Bill over there for several
months, so I agreed to go over and talk to Clyde Crosby about it,
Mr. Kennedy. In the meantime, at these meetings that you had
with Hanzen and Langley, they wanted to make arrangements with
you to distribute some of their literature ?
Mr. Elkins. And put up some signs, and I would give him the
money to pay for the signs.
Mr. Kennfj)y. "Wliat kind of literature was this ?
Mr. Elkins. It was little pamphlets, running down McCourt's char-
acter and building Langley's character up.
IMPROPER ACTIVITIES EST THE LABOR FIELD 87
Mr. Kennedy. Did you go see Clyde Crosby after the several meet-
ings that you had ?
^Ir. Elkixs. Yes, I did.
Mr. Kennedy. And what did he say to you at that time?
Mr. Eekins. Well, he said the Central Labor Council had already
endorsed McCourt, and he didn't see how they could cliange it, that
the teamsters had been in bud repute there up until John Sweeney
came to Portland, and they were just now getting back ahold of the
reins and they didn't want to jeopardize things.
I said I could see that. I said, "How about your going to lunch
with him and telling him the story."
Mr. I^nnedy. The Central Labor Council, which is the makeup of
the various A. F. of L. and CIO unions, had already backed McCourt?
Mr. Elktns. That is correct.
Mr. Kennedy. And the teamsters had already gone along with
that ?
Mr. Elkins. That is correct.
]\Ir. Kennedy. "When you came in to see Clyde Crosby, you sug-
gested that the teamsters pull out of that and back Langley ?
Mr. Eekins. That is right.
Mr. Kennedy. Did he say that the teamsters had had difficulty in
Oregon in the past with the other A. F. of L.-CIO unions and that
they were just getting back in their good graces and for them now to
pull out of this situation and back a different candidate would cause
even more trouble, is that right ?
INIr. Elkins. They felt it would weaken their position somewhat.
He called, I think it was, Jim Higgins
Mr. Kennedy. You said "lA^iy don't you just go to lunch with
Langley?"
Mr. Elkins. Yes.
Mr. Kennedy. He called someone ?
Mr. Elkins. Yes.
Mr. Kennedy. What was their advice?
Mr. Elkins. He explained it to me, and then he told me, this man
is kind of a political adviser, and this man explained the same thing
that Crosby had, and said 'T don't feel that we should even, either
one of us, have lunch with Langley."
Mr. Kennedy. Because the only thing that could be told him was
that the teamsters would not back Langley ?
Mr. Elkins. That is correct.
Mr. Kennedy. You Avent back with this news that the teamsters
would not go along with Langley and discussed the matter with your
brother ?
Mr. Elkins. My brother, Henry PTanzen, and Bill Langley.
Mr. Kennedy. What did your brother suggest at that time?
Mr. Elkins. INIy brother said to call Tom.
Mr. Kennedy. Tom Maloney ?
Mr. Elkins. Tom Maloney.
ISIr. Kennedy. Did you call Tom Maloney?
Mr. Elkins. I did.
Mr. Kennedy. Did lie tell you at that time that he was making $50
ii day at the racetrack?
Mr, Elkins. That is right.
88 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Did you tell him you would make up his expenses if
he would come to Portland ?
Mr. Elkins. That is rio;ht.
Mr. Kennedy. Did he come to Portland ?
Mr. Elkins. He did.
Mr. Kennedy. Did he see Clyde Crosby ?
Mr. Elkins. He did.
Mr. Kennedy. Did he ask Crosby to back William Langley ?
Mr. Elkins. He did.
Mr. Kennedy. Did Clyde Crosby say "no," they would not?
Mr. Elkins. He did.
(At this point, Senator Ervin entered the hearing room.)
Mr. Kennedy. Did you then call up Sweeney ?
Mr. Elkins. That is right.
Mr. Kennedy. Wliat report did you get then?
Mr. Elkins. John Sweeney called Crosby and told him to back
Langley, but not to make it public.
Mr. Kennedy. To keep it quiet at the beginning?
Mr. Elkins. To keep it quiet, not run his picture in the teamsters
paper, nor McCourt's, but to go along with it and put out some signs,
Mr. Kennedy. Not to have the teamsters newspaper come out at
that time?
Mr. Elkins. That is right.
Mr. Kennedy. Did Tom Maloney come down to see you ?
Mr. Elkins. He did, and brought a couple of teamsters boys with
him.
Mr. Kennedy. Including Frank Malloy ?
Mr. Elkins. Correct.
Mr. Kennedy. He told them at that time that they should work
closely with you in the campaign ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did you give Tom Maloney any money for this
service ?
Mr. Elkins. Yes, I did.
Mr. Kennedy. What did you give him then ?
Mr. Elkins. I gave him $100.
Mr. Kennedy. Was that supposed to be for his expenses ?
Mr. Elkins. That is right.
Mr. Kennedy. Did he receive any other money ?
Mr. Elkins. Yes. When he got my brother off to one side, he gave
him a Inindred.
Mr. Kennedy. For the same thing?
Mr. Elkins. The same thing, yes.
Mr. Kennedy. Did you pay his hotel expenses, too ?
Mr. Elkins. Yes.
Mr. Kennedy. The teamsters were very inactive after that, still,
for Langley, is that right?
Mr. Elkins. For about a week or 10 days.
Mr. Kennedy. And just
Mr. Elkins. They came over and got one batch of signs from my
shop. .
:Mr. Kennedy. And the betting in Portland was m favor of Mc-
Court'^
Mr. Elkins. That is correct.
IMPROPER ACTIVITIES EST THE LABOR FIELD 8(>
Mr. Kennedy. Did you get in touch M'itli Tom jVIalonc}' and sav
"something needs to be done on this" ?
Mr. Er.KiNs. Yes, I did.
Mr. Kennedy. And again he brought up about the fact that he wns
getting $50 a day ?
Mr. Elkins. That is right.
Mr. Kennedy. Did you ask him to come down ?
Mr. Elkins. I tokl him to come on down.
Mr. Kennedy. During this period of time that he was up in Ser-ttle.
did he write you a couple of letters and tell you how the situation
looked ?
Mr. Elkins. Yes, he did. Several letters.
The Chairman. The Chair will ask you if you have heretofore
seen photostatic copies of the letters.
]\fr. Elkins. Yes, sir.
The Chairman. Can you identify photostatic copies of them?
Mr. Elkins. I will, yes, sir.
The Chairman. The clerk will present to the witness photostatic
copies for his identification.
(Documents handed to witness.)
The Chairman. Has the witness examined the photostatic copies
presented by the clerk ?
Mr. Elkins. Yes, sir.
The Chairman. What are they ?
Mr. Elkins. They are letters to me from Tom Maloney.
The Chairman. Letters to you from Tom Maloney ?
]\Ir. Elkins. That is correct.
The Chairman. The letters may be printed in the record, and will
be made exhibit 17.
(The letters referred to were marked "Exhibit No. 17" for refer-
ence and will be found in the appendix on pp. 367-370.)
The Chairman. Does counsel wish to interrogate him about any
particular point in the letters? I will not take time to read them.
Mr. Kennedy. They speak for themselves, showing the interest
Tom Maloney had in Langley's campaign, and giving suggestions to
Jim Elkins as to what should be done down there.
The Chairman. Is that a substantially correct statement about
wliat tlie letter does ?
Mr. Elkins. That is correct.
The Chairman. Any member of the committee can read it at their
pleasure, but it will be in the record.
Mr. Kennedy. I want to make a correction in the record about
Tom Maloney on something I said earlier. When you could not get
Crosby to back Langley. then you got in touch with Tom Maloney,
and then Tom Maloney — who did he call at that time? I said he just
called John Sweeney.
Mr. Elkins. He called Frank Brewster also.
Mr. Kennedy. He called Frank Brewster?
Mr. Elkins. That is right.
Mr. Kennedy. The conversation with Frank Brewster was then,
and what was done? Sweeney's conversation with Crosby was con-
firmed to you from Sweeney ?
Mr. Elkins. That is correct.
90 IMPROPER ACTIVITIES IN THE LABOR FIELD
In the meantime, John Sweeney called me while Tom was <2;one and
asked me how things were coming, and I told him we wasn't getting
mnch cooperation. Then I called Tom and he came back to Portland.
Mr. Kexxedv. This time you made an agreement to pay $50 a
day?
Mr. Elkins. That is correct.
Mr. Kennp:dy. How much did he say he would need from you for
the start of the campaign ?
Mr. Elkins. $500.
Mr. Kennedy. Did he ask for $700 more after that ?
Mr. Elkins. Yes ; 2 days later.
Mr. Kennedy. How long afterward ?
Mr. Elkins. Two days later.
Mr. Kennedy. And you fixed up a sound truck ?
Mr. Elkins. I paid for it ; yes.
Mr. Kennedy. The sound truck went out to the livestock show that
was going on ?
Mr. Elkins. Yes ; to the Pacific International.
Mr. Kennedy. Excuse me ? The International Livestock Show ?
Mr. Elkins. Yes.
Mr. Kennedy. At that time, the sheriff there was Mr. Schrunk?
Mr. Elkins. That is right.
Mr. Kennedy. Did he order the sound truck out of the livestock
show?
Mr. Elkins. Yes.
Mr. Kennedy. What did Maloney do then ?
Mr. Elkins. He called Sweeney and had Sweeney call Schrunk,
and the next clay they put Schrunk's name on the recorder on the
truck.
Mr. Kennedy. They put that on the recording that they were play-
ing at the livestock show ; they put Schrunk's name on it ?
Mr. Elkins. That is correct.
Mr. Kennedy. This is after a conversation of Maloney with
Sweeney ?
Mr. Elkins. That is correct.
Mr. Kennedy. And the car went back out to the livestock show after
that and was not molested ?
Mr. Elkins. That is right,
Mr. Kennedy. Mr. Schrunk is now mayor of the city of Portland ?
Mr. Elkins. That is right. He was sheriff' and running for a new
term at that time.
Mr. Kennedy. How much money altogether did you give into Lang-
ley's campaign ?
"Mr. Elkins. Well, I believe I gave Tom Maloney about $3,600.
Mr. Kennedy. About $3,600 ?
Mr. Elkins. That doesn't include the $1,280 and a few other dollars.
Mr. Kennedy. Did you give money directly to Langley?
Mr. Elkins. That is correct.
Mr. Kennedy. You and your brother?
Mr. Elkins. That is correct.
Mr. Kennedy. $1,800 more, approximately ?
Mr. Elkins. No, I would say, including the $1,280, we give him
$200, $100, $300, and then we paid for signs. I would say with the
$1,280 it was about $1,800.
IMPROPER ACTIVITIES EST THE LABOR FIELD 91
Mr. Kennedy. The original $1,280 when you paid the printing bill ?
Mr. Elkins. That is right.
Mr. Kennedy. So j^ou gave $3,500 to Maloney ?
Mr. Elkins. Thirty-six.
Mr. Kenendy. About $3,600 to Maloney, about $1,800 to Langley
directly, including the printing bill ?
Mr. Elkins. That is right.
Mr. Kennedy. Did Tom Maloney approach you about his own bill?
Mr. Elkins. Yes. He called me and I gave him either eleven or
thirteen hundred dollars in the Roosevelt Hotel, plus $200 for Frank
Malloy and $200 for Frank Malloy's wife and $500 for a watch for
Mark Holmes.
Mr. Kennedy. Mark Holmes at that time was what?
Mr. Elkins. He was in the teamsters.
Mr. Kennedy. Did Maloney say that he was having trouble with
Malloy?
Mr. Elkins. Yes. Malloy was drinking quite a bit and calling
me a son of a sea cook.
Mr. Kennedy. Did he say that he disliked anything about Malloy
or what he was doing ?
Mr. Elkins. He said he was wanting to get a couple of places open
on his own, and he felt he was entitled to them for the work he had
done.
Mr. Kennedy. "Was he apprehensive that he was getting close to
Langley ?
Mr. Elkins. That is right. That he had been a constant companion
to Langley during this campaign, and Malloy felt that he should still
be in there as an adviser or something.
Mr. Kennedy. And be allowed to open some places of his own ?
Mr. Elkins. That is correct.
Mr. lijiNNEDY. You said there was $500 needed for a watch for
Holmes ?
Mr. Elkins. That is right.
Mr. Kennedy. Wliat was the reason for that ?
Mr. Elkins. Tom had a watch on that he says was worth about $500.
During the campaign, Mark Holmes was doing a terrific amount of
work, and he did have a lot of friends; he still has. So Tom said that
Mark wanted a watch like he had, and that he had obligated himself to
the point of promising him one if Bill Langley won. Bill Langley
had won, so I felt that he should keep his word with Mark Holmes.
Mr. Kennedy. Right after that, did you have a meeting with Lang-
ley and have an understanding with him ?
Mr. Elkins. No ; that day Tom told me he was going to have Lang-
ley shut his phones off and he and his family would take a vacation
to California. I asked him where he would get the money, and he said
the Teamsters would pay it.
Mr. Kennedy. The Teamsters were going to pay for Langley's vaca-
tion ?
Mr. Elkins. That is what they told me.
Mr. Kennedy. 'Wliat did he say he wanted Langley to go to Cali-
fornia for ?
89330— 57— pt. 1 7
92 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. He wanted him to meet Frank Brewster and consult
with John Sweeney and have them introduce him to a lot of influ-
ential people.
Mr. Kennedy. Did you, during- this period, have a conversation
with Langley as to what services he was going to perform for you,
for the amount of money you contributed to his campaign ?
Mr. Elkins. No ; I didn't get close to him, until I got a phone call
when he came back. He left immediately then and went to Califor-
nia. And then when he came back, Tom
Mr. Kennedy. That is where he said he was going ?
Mr. Elkins. Well, that is where he told me he was going. I don't
know where he went.
(At this point, Senator Ervin withdrew from the hearing room.)
Mr. Elkins. I am pretty sure he went there, because Tom called
me from down there himself.
Mr. Kennedy. You were talking about Langley ?
Mr. Elkins. No ; I am talking about jMaloney. He called me and
said he wanted me to meet Bill Langley and him in Seattle, Wash.
Mr. Kennedy. Before we get into that, was there ever any discus-
sion that you had with Langley about the abatements and about the
fact that he would let you know when summons were put out?
Mr. Elkins. That is correct. He was in the car with my brother
and I and he wanted to know what we were going to require if he
was elected. I said "Not a devil of a lot. It depends on certain
things. We have never particularly embarrassed any D. A. and there
is not much we want from you. We are pretty capable of running
our own business. But," I said, "we would appreciate a phone call,"
or he not forgetting the fact that we had helped.
Mr. Kennedy. Was it sort of understood that summonses were going
to be put out ?
Mr. Elkins. It wasn't understood. He flatfooted said "I will look
after you."
Mr. Kennedy. Was there any discussion about when summonses
were put out ?
Mr. Elkins. Yes. He would give us a call.
Mr. Kennedy. What ?
Mr. Elkins. He would call me and tell me there was a warrant
for the place.
Mr. Kennedy. And also on the abatements that he wouldn't abate
your place ?
Mr. Elkins. That is right.
Mr. Kennedy. Those are the two services you wanted performed ?
Mr. Elkins. That is right.
Mr. Kennedy. While they were out of the city, you received a
call from Mr. Colacurcio ?
Mr. Elkins, Yes.
Mr. Kennedy. And who did you know Colacurcio to be ?
Mr. Elkins. Well, I knew him to be another racketeer.
Mr. Kennedy. A racketeer?
Mr. Elkins. Yes.
Mr. Kennedy. Did you feel then that
Mr. Elkins. Well, I woke up then that I was getting the business,
that the minute Langley won and Joe disappeared from Seattle, I
IMPROPER ACTIVITIES EST THE LABOR FIELD 93
knew that Tom has decided to do a little bit of doublecrossing, and
it was
The Chairman. Tom Maloney, do you mean?
Mr. Elkins. Tom Maloney; yes, sir.
Mr. Kennedy. You received a telephone call then from Tom
Maloney when he was coming tlirough Portland that you should
come up to Seattle, that John Sweeney and Frank Brewster wanted
you to come up to Seattle 'i
Mr. Elkins. That was a little later.
Mr. Kennedy. A little bit later ?
Mr. Elkins. Yes.
Mr. Kennedy. They wanted you to come up to Seattle to meet
with Langley ?
Mr. Elkins. That is right.
Mr. Kennedy. Did you say you felt this was rather foolish?
Mr, P^lkins. I did, because I couldn't see why if I could meet him
to give him money, why I couldn't meet him to talk to him.
Mr. Kjsnnedy, Did you decide to go anyway ?
Mr. Elkins. They said that is John and Frank's orders, so I went
and talked to him.
Mr. Kennedy. And you went and met at the Olympic Hotel?
Mr. Elkins. That is correct.
The Chairman. Brewster, he is the one that is head of the Western
Conference ?
Mr. Elkins. That is right.
The Chairman. And this was after the elections ?
Mr. Elkins. That is right.
The Chairman. Did this have to do with operating these rackets ?
;Mr. Elkins. That is right.
Tlie Chairman. Since we cannot conclude with you this afternoon,
I guess you are a little tired, and the committee has been very patient
and attentive, we will have to go over until in the morning.
Is there anytliing further from any member of the committee?
If not, the committee will stand in recess until 10 o'clock in the
morning.
(Whereupon, at 4:15 p. m., the committee recessed, to reconvene
at 10 a. m. Wednesday, February 27, 1957.)
(Members present at the taking of the recess: The chairman.
Senators Ives, Kennedy, and Mundt.)
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR 3IANAGEMENT FIELD
WEDNESDAY, EEBRUARY 27, 1957
United States Senate,
Select Committ'ee on Improper Activities
IN THE Labor or Management Field,
Washington, D. G.
The select committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January 30. 1957, in the caucus room of the Senate
Office Buildino;, Senator John L. McClellan (chairman of the select
committee) presiding.
Present : Senator John L. ISIcClellan, Democrat, Arkansas : Senator
Irving M, Ives, Republican, New York; Senator John F. Kennedy,
Democrat, JMassachusetts; Senator Sam J. Ervin, Jr., Democrat,
North Carolina ; Senator Pat INIcNamara, Democrat, Michigan ; Sen-
ator Joseph R. ]McCarthy, Republican, Wisconsin; Senator Karl E.
Mundt, Republican, South Dakota; Senator Barry Goldwater, Re-
publican, Arizona.
Also present : Robert F. Kennedy, chief counsel to the select com-
mittee ; Jerome Adlerman, assistant counsel ; Alphonse F. Calabrese,
investigator ; Ruth Young "Watt, chief clerk.
The Chairman. The committee will be in order.
(Present at the convening of the hearing were Senators McClellan,
Ives, Kennedy, McNamara, McCarthy, and Goldwater.)
The Chairman. Call the witness, please.
Mr. Kennedy. Mr. James EUvins.
The Chairman. JSIr. Elkins, will you come around, please?
Mr. Kennedy. TVHiile Mr. Elkins is coming around, could we put
this list of principals of the Portland hearing in the record ? These
are the people who will be referred to as the hearing proceeds.
The Chairman. The Chair understands that this is a chart pre-
pared by the staff based upon information as it was received, and that
the names of the persons there and their positions and connections
with different labor organizations or whatever their position may be
is identified.
The purpose of the chart is to assist the committee and the press
and the public in understanding as names are called who they are so
as to identify them properly in the minds of the members of the com-
mittee and also for the record.
Mr. Kennedy. That is correct, Mr. Chairman.
The Chairman. The chart will be printed in the record at this
point.
95
96 IMPROPER ACTIVITIES IN THE LABOR FIELD
(The chart listing principals in the Portland hearings follows :)
Altschuler, Morrie, bookmaker brought to Portland by McLaughlin.
Brewster, Frank W., president of the Western Conference of Teamsters,
Seattle.
Beckman, Les, Portland pinball operator.
Bennett. Clifford O. (Jimmy), Portland bootlegger.
Clark, Raymond F., Elkins' employee who tape recorded the plotters' con-
versation.
Crosby, Clyde C, international organizer for the teamsters in Oregon and
member of Portland's Exposition-Recreation Commission.
Crouch. Neil, operator of the Mount Hood Cafe, Portland.
Colacurcio, Frank, Seattle restaurant operator.
Dunis, Lou, Portland pinball operatoi-.
De Graw, Clyde (deceased), operator of the Dekum Tavern, Portland.
Elkins, James B., financier of illegal gambling and bootlegging operations,
Portland, Oreg.
Elkins, Fred, brother, and occasional business partner of James B. Elkins.
Earl, Stanle.v, Portland city commissioner.
Ferguson, Harvey (Swede), Portland bootlegger.
Goldbaum, Hy, gambler and friend of Brewster's.
Goebel, William, Portland pinball operator.
Hildreth. Lloyd, secretary, Portland Local 223, Teamsters' Union.
Hardy, Helen. Portland bawdy house madam.
Hanzen, Henry, Portland and Salem, Oreg., attorney, and early supi)orter of
Langle.y for district attorney.
Jenkins, James Q., employee of James Elkins (former).
Johnson, Thomas, leader of the Portland Negro district underworld.
Kelley, .John W. (Bill), Portland real estate dealer.
Kane, Bernie, employee of James Elkins (former).
Langley, William M., district attorney of Multnomah County, Oreg., of which
Portland is the county seat.
Lystad, Lester and Stanley, operators of the American Shuffleboard Sales Co.,
Seattle.
Maloney. Thomas Emmett, Seattle gambler.
Malloy, Frank, business agent, Portland Local 223, Teamsters' Union.
McLaughlin. Joseph Patrick (alias McKinley), Seattle gambler.
McCourt. John B., district attorney defeated b.v Langley.
Nemer, Norman, Portland punchboard operator.
O'Donnell. .John .1., Multnomah county auditor, and teamster-backed candidate
against Earl for cit.v commissioner.
Plotkin, Leo, bootlegger and associate of Maloney.
Peterson, Fred L., former Portland mayor.
Pui'cell, .Tim, Jr., Portland police chief under Mayor Peterson.
Purcell, Bard, Portland T)olice lieutenant, brother of the ex-chief.
Plummei", Herman, Portland real estate dealer.
Sellinas, Sam, Seattle associate of teamsters.
Sweeney. .John .J. (deceased), Crosby's predecessor in Oregon and later Secre-
tary-Treasurer of the Westei-n Conference of Teamsters.
Smalley, Helen, Portland bawdy house madam.
Schrunk, Terry D., pi-esent Portland mayor who defeated Peterson.
Slonigei", C. R., Portland attorney.
Terry, Stanley G., Portland pinball operator.
Thompson. Ann, bawdy house madam, Seattle and Tacoma.
Thornton, Robert Y.. Oregon's attorney general.
Wright, Veral P. (Budge), Portland pinball operator.
Walter, Herman, business associate of Wright.
Zusman, Nate, operator of Desert Room, Portland night club.
The Chairman. All right, Mr. Counsel ; we will proceed.
Before this witness proceeds with his testimony, the Chair, after
consultation with other members of the committee present wishes to
make this announcement.
Since this witness testified yesterday afternoon the FBI advises us
that his brother, Carl Elkins, and it was his other brother he referred
to yesterday, but at least his other brother, Carl Elkins, who is in
IMPROPER ACTIVITIES EST THE LABOR FIELD 97
Arizona has received another and this is not the first, but has received
another anonymous telephone call threatening his life if he should
testif}' or if jMr. Elkins, the witness present, continues to testify.
The FBI advises that they are initiatino; an immediate investiga-
tion. The Cliair wislies to state that on the basis of information the
committee has of which this announcement is just a part, it is develop-
ing apparently that the hoodlum and gangster element that has infil-
trated into labor and management relations possibly intend to chal-
lenge the work and labors of this committee with every obstruction
and every hindrance that they can possibly place in the way, includ-
ing violence, threats of violence, and all forms of intimidation and
coercion.
If that situation develops as it appears now it is in the process
of doing, the Chair wishes to say, and I believe I say it with the ap-
proval and with the acquiescence and endorsement of every member
of this committee, that such action will be a challenge to law and order
and to the power of the Government of the United States.
I believe and I hope that this committee has the courage in the
face of these threats to continue to do its duty. The witness who is
testifying now and others who will testify, are to be commended. They
are performing a patriotic duty to their country in my judgment some-
what comparable to that of opposing an enemy in time of war. They
should have national commendation for the courage that they are
manifesting and for the ordeal and mental anguish that they labor
under when they try to respond to their Government and to give the
information that is essential to this committee and to the Congress
of the United States if it is to preserve our liberties and the great
blessings that we enjoy.
Are there any comments from any member of the committee?
Senator Ives. I simply want to endorse what you have said, Mr.
Chairman, wholeheartedly. I think it is excellent. I am sure every
member of the committee feels the same way.
The Chairman. Are there any other comments ?
Senator McCarthy. I would say I agree wholeheartedly with what
the chairman has said.
The Chairman. I want to again announce insofar as this commit-
tee has any power and insofar as other law-enforcement agencies of
this country have the authority and duty, I believe we will exercise it
to the limit.
All right, proceed with the witness.
TESTIMONY OF JAMES B. ELKINS— Resumed
Mr. Elkins. Could I say something about the brother you spoke
of? He is not in the rackets. He is an honest man, as we call him, a
''square."
The Chairiman. Thank you very much and I assure you that some
people who are in the category of hoodlums and gangsters have no
respect for decency. They would harm your brother just as quickly
as they would you.
Mr. Elkins. I appreciate that.
The Chairman. If they thought they could advance their cause
and protect themselves by so doing, they would. I am glad to have
you make that statement about your brother and I trust that the au-
98 IMPROPER ACTIVITIES IN THE LABOR FIELD
thorities who have that responsibility are on the job and I am confi-
dent they are and will afford every protection it is possible to afford.
Mr. Kennedy. Mr, Elkins, yesterday we went through the rela-
tionship that you had with Mr. Tom Maloney and how you met Mr.
Tom Maloney and his coming down to Portland and his being able
to put your machines in the labor temple, and then your tieup with
District Attorney Langley and Tom Maloney being able to switch the
teamster backing from Mr. McCourt to Mr. Langley, is that correct ?
Mr. Elkins. That is correct.
Mr. Kennedy. Now, they came out actively for Mr. Langley ulti-
mately, did they not, the teamsters ?
Mr. Elkins. That is correct.
Mr. Kennedy. Initially, it was supposed to be quiet but then after
you brought Tom Maloney down there permanently and paid him $50
a day, then the teamsters came out and actively supported Mr.
Langley.
Mr. Elkins. That is right.
Mr. Kennedy. Then, there was the understanding that you had with
the district attorney that he was going to keep you informed at any
time any summonses were put out for any of the places in wliich you
were interested, is that right ?
Mr. Elkins. That is correct.
Mr. Kennedy. And also, that he would cover you as far as abate-
ments were concerned.
Mr. Elkins. Yes, sir.
Mr. Kennedy. Now, the abatements mean that when a place is
raided twice, they put a padlock on it for a year, is that right, and you
cannot use it.
Mr. Elkins. That is the method Mr. McCourt used and sometimes
he wouldn't wait for them to be arrested.
Mr. Kennedy. That would be one of your greatest problems if
that happened.
Mr. Elkins. That is right.
Senator McCarthy. Could I interrupt for just one minute? I
think when we talk about the teamsters we should make it clear that
we are talking about certain elements in the teamsters' union. I know
so many fine people in the teamsters union and I know they do not
go along with this and I do not know what term you can use, but we
are not speaking of the teamsters as a whole, is that right ?
The Chaikman. We are not speaking of the rank and file, the men
who pay the dues and do the honest work. We are speaking of that
element that has infiltrated into that organization that is pursuing
these practices and activities about which witnesses are testifying.
I am sure that the public understands that and I am sure in the
teamsters union there are liundreds of thousands of fine American
citizens who will applaud, I think, our cleaning up this thing,
Mr. Kennedy. Now, yesterday we were able to go through as far
as the election of Mr. Langley and that you were called up to meet
with Mr. Langley and Mr. Maloney in Seattle.
Mr. Elkins. That is right.
Mr. Kennedy. That you received a telephone call from Tom Ma-
loney, that Frank and John wanted you to come to Seattle to meet
witli Maloney and with Langley, is that correct ?
Mr. Elkins. That is correct.
IMPROPER ACTIVITIES IN THE LABOR FIELD 99
Mr, Kennedy. And John and Frank are John Sweeney and Frank
Brewster ?
Mr. Elkins. That is correct.
Mr. IvENNEDY. Now, I waut to skip over that meeting and skip over
the next 6 or 7 months, in which yon were working with Tom Maloney
and Joe McLaughlin, and certain teamster officials and the district
attorney to set up certain operations in the city of Portland.
Now, after approximately September of 1955 you had a fight, a
major fight, with Joe McLaughlin, Maloney, Clyde Crosby, and the
rest.
Mr. Elkins. Yes, sir.
Mr. Kennedy. It was at that time that you decided that you would
put a tap in their room arid bug their apartment, is that right?
Mr. Elkins. Yes, and carried a miniphone.
Mr. Kennedy. When you spoke to them.
Mr, Elkins. A great deal of the time.
Mr. Kennedy. Could you tell the committee why you did that?
Mr. Elkins. Well, Crosby and Maloney and all of those people
were past masters at making you out a liar. Everything you did,
they would either doublecross you or call you a liar. I don't like to
be called a liar.
Mr. Kennedy. Did you feel with your reputation that you would
have a difficult time proving to anybody that you were not.
Mr, Elkins, I thought it would be next to impossible to prove it
unless I had it in their own words and something to back me up on
everything.
Mr. Kennedy. Is that why you put the bug in their room ?
Mr. Elkins. Yes, that is exactly right.
Mr. Kennedy. Now, after you took these tape recordings, you then
after some period of time, drew them to the attention of Mr. Clyde
Crosby, who was the international organizer of the teamsters.
Mr. Elkins. I did.
Mr, I^NNEDY. Then, did you try to go up to meet Mr. Frank
Brewster.
Mr. Elkins. I did.
Mr. Kennedy. Now these tape recordings covered subjects such as
•prostitution.
Mr. Elkins. They did.
Mr, Kennedy, And abortionists ?
Mr. Elkins. Yes.
Mr. Kennedy. Gambling.
Mr. Elkins. Correct.
Mr. Kennedy. Bootlegging.
Mr. Elkins. That is right.
Mr. Kennedy. After-hours joints.
Mr. Elkins. That is right.
Mr. Kennedy. And you were going to try through these tape re-
cordings to get Joe McLaughlin and Tom Maloney out of this situa-
tion in Portland, Greg.
Mr. Elkins. That is right.
Mr. Kennedy. So you met Avith Mr. Clyde Crosby and did you then
try to meet Frank Brewster up in Seattle ?
Mr. Elkins. I did ; yes, sir,
Mr. Kennedy. Did you have a difficult time meeting with them?
100 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkixs. I did. I first tried to ^et to John Sweeney, and I
couldn't ^et to him.
Mr. Kennedy. He wouldn't answer the phone.
Mr. Elkins. No.
Mr. Kennedy. You found that he was out always.
Mr. Elkins. He was either in '"Holland," "Gypswitch" or some-
where.
Mr. Kennedy. And you never talked to him.
Mr. Elkins. Yes, sir.
Mr. Kennedy. Did you try to get hold of Frank Brewster?
Mr. Elkins. I did.
Mr. Kennedy. Were you unsuccessful in that ?
Mr. Elkins. I was.
Mr. Kennedy. Ultimately through a contact, were you able to meet
with Frank Brewster and go up to see Frank Brewster ?
Mr. Elkins. I was ; yes, sir.
Mr. Kennedy. Would you tell the committee what happened in
your trip to Frank Brewster. Would you tell the committee whether
you had a miniphone on at the time that you met with Frank Brew-
ster ?
Mr. Elkins. Could I answer that in executive session or later?
The Chairman. Are you testifying under fear and apprehension?
Mr. Elkins. Well, I have a family and I know they are going to
do something to me, but that doesn't make any difference. They
are doing their best, but naturally I want to protect myself if I can.
The Chairman. I think unless there is objection, where the wit-
ness is cooperating and where he requests on some point of his testi-
mony to be heard in executive session, the Chair feels unless there is
objection that we should grant the witness his request.
Without objection, then, the witness' request will be granted and
that part of his testimony will be deferred for an executive session.
Mr. Kennedy. Will you recount for the committee the conversa-
tion that you had with Mr. Frank Brewster ?
Mr. Elkins. As near as I can remember it, I came into his room
and I first sat down in his little waiting room. Three men came in
and looked me over for a couple of minutes and walked out. Then,
he came in and I went in his place. I am looking around and he
said, "You don't have to be so-and-so afraid of me. I don't wire
up my place." I said, "I am not afraid of you wiring it up, Mr.
Brewster." He said, "I am going to tell you to start with I don't like
the peoiDle you represent." I said, "I don't represent any people, just
Jim Elkins."
He said, "Well, I am going to tell you something else. I make
mayors and I break mayors, and I make chiefs of police and I break
chiefs of police. I have been in jail and I have been out of jail.
There is nothing scares me."
I said, "I don't want to scare you. All I want to be is left alone."
He talked a little more and he got red in the face and he said, "If you
bother my 2 boys, if you embarrass my 2 boys, you will find ^^ourself
wading across Lake Washington with a pair of concrete boots." I
believe that was the expression.
I said, "Let us name the boys."
The Chairman. Who were the two boys ?
LVIPROPER ACTIVITIES IN THE LABOR FIELD 101
Mr. Elkins. Clyde Crosby and Bill Langley.
The Chairman. Crosby was what at that time ?
Mr. Elkins. He had the job he has right now.
The Chairman. Crosby was what ?
Mr. Elkins. Whatever the position he holds, he is the big man
for the teamsters union in Portland and he is in charge of the Portland
area, international representative or whatever he is.
The Chairman. He was a big official or power in the teamsters
miion at that time ?
Mr. Elkins. That is correct.
The Chairman. Who was Langley ?
Mr. Elkins. He was the district attorney of Multnomah County,
Portland, Oreg.
The Chairman. And he was ordering you not to embarrass him?
Mr. Elkins. That is correct.
The Chairman. If you did, you would find yourself walking
through Lake Washington with a pair of concrete boots.
Mr. Elkins. That is correct.
The Chairman. All right, go ahead.
Mr. Elkins. He also said, "Tom Maloney is a blubberheaded blab-
bermouthed so-and-so and I have known him 20 years, and I have put
him in business 20 times and he messes up every time." Although he
didn't say "mess up."
I told iiim I agreed with that, certainly, and he said Joe McLaughlin
would be an asset to scnj man's organization.
The Ch^virman. He said that or you said it?
Mr. Elkins. He said it. He said —
But I don't know what you're bellyaching about. You didn't let them make
enough money. They could have done better in a popcorn stand.
The Chairman. He was claiming you didn't let them make enough
money ?
Mr. Elkins. That is correct.
The Chairman. Are those the two men who testified here yesterday ?
Mr. Elkins. That is correct, yes, sir.
The Chairman. They took the fifth amendment ?
Mr. Elkins. That is correct; yes sir.
The Ch.airman. All right, proceed.
Mr. Kennedy. Will you go ahead ?
Mr. Elkins. That is it. I just walked out, and I went on back
home. Then I started catching more hell than I did before.
Mr. Kennedy. What happened to you then?
Mr. Elkins. They would call my wife and make threats, and then
they would call at 2 o'clock in the morning and tie the phone up for
a couple of hours.
Mr. Kennedy. How would they tie the phone up?
Mr. Elkins. They would call from some place and leave the receiver
off. If they called from a roadside pay phone and left the receiver
hanging, you can't use your phone.
They told me and my wife, "We are just a minute away and we are
coming over to break both arms and both legs." I said, "AVell we'll
be waiting." My wife wanted to run next door to the neighbors, but
I didn't want her out of the house, and I didn't want to leave her and
the youngster there alone. So I just took a shotgun and sat by the
door, but they didn't come.
102 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Did they ever come?
Mr. Elkins. Two fellows came when I wasn't home on two occa-
sions and she called me and they would leave before I could get there.
Mr. Kennedy. How did you finally catch them there?
Mr. Elkins. Well, I left like I was going to leave and I doubled
back in another car.
Mr. Kennedy. In another car?
Mr. Elkins. In another car ; yes.
Mr. Kennedy. Then, what happened?
Mr. Elkins. Well, I pulled up to the curb, and I talked to them
and they left and they didn't come back no more.
The Chairman. You did what?
Mr. Elkins. I talked to them. Well, I pointed the shotgun at them
and I talked to them, and they didn't come back any more.
Mr. Kennedy, Did you do anything else with them ?
Mr. Elkins. Yes; I did. One of them, yes, I treated him a little
rough.
Mr. Kennedy. TYhat did you do with him?
Mr. Elkins. Well, I hit him on the head and knocked him around
a little bit and put him back in the car and told his buddy that I wasi
going to shoot the next person that came in my yard.
Mr. Kennedy. And they never came back ?
Mr. Elkins. They never came back. Another time they called at
9 o'clock in the morning and they said, "Old man, we want to meet
you right now," and my wife got excited when she heard the voice
and she thought she knew them and so I took the phone and I said,
''Well, I can't meet you right now, but when and where?"
They said, "96th and Marine Drive." I said, "In the river or out
of the river ?" 96th and Marine Drive is on the banks of the Columbia
River. And he said, "You just be there." But my wife raised such a
fuss that I didn't go.
The Chairman. You did not keep the appointment?
Mr. Elkins. No, I didn't keep the appointment.
Mr. Kennedy. How many telephone calls do you think that you
received during this period of time ?
Mr. Elkins. Maybe 20, and I don't believe over 20.
Mr. Kennedy. Were they at all times?
Mr. Elkins. Day and night, anytime, 2 or 3 o'clock in the morning
sometimes. When they tied it up the longest was from about 1 : 30
until about 3 : 30.
Mr. Kennedy. The way they would tie it up was to put a call in
to you and then leave their own phone otf the hook.
Mr. Elkins. That is correct.
Mr. Kennedy. That ties your phone up?
Mr. Elkins. Your phone is tied up, that is correct. When I would
listen on the receiver I could hear trucks go by occasionally. So tirst
I thought they had cut my telephone line, and then I guess the tele-
phone company or someone would come by to use this phone eventually
and hung it up.
The next day I called the telephone company and they explained to
me what happened.
Mr. Kennedy. Did you ever take any measures to protect your-
self?
mPROPER ACTIVITIES IN THE LABOR FIELD 103
Mr. Elkins. Yes, the Portland Police Department was trying to
protect me but I live in the county and the teamsters controlled the
sheriff, so I didn't feel like I could get much protection there. So
the city police attempted to try to cover me, but they were out of their
jurisdiction. One of the boys was indicted for some simple thing, a
Portland policeman.
Mr. Kennedy. ^AHiat was that ?
Mr. Elkins. He was eventually indicted.
Mr. Kennedy. For doing what ?
Mr. Elkins. False swearing, they called it.
Mr. Kennedy. How long a period of time did this continue ?
Mr. Elkins. About 7 months.
Mr. Kennedy. Did you put lights up in your house?
Mr. Elkins. Floodlights all of the way around, up in the trees and
on the sides of the house.
Mr, Kennedy. '\^lien you were up visiting Frank Brewster he said
to you that if you embarrassed his boys, you would be walking through
Eake Washington with cement boots ?
Mr. Elkins. That is correct.
Mr. Kennedy. You are sure that he said that?
Mr. Elkins. I am positive.
Mr. Kennedy. Was your other brother, Fred Elkins, ever threat-
ened ?
ISIr. Elkins. No, not that I know of. He doesn't live in Oregon.
The Chairman. Mr. Elkins, you have testified that you talked per-
suasively to two of those who came to visit you.
Mr. Elkins. Yes, sir.
The Chairman, Did you identify the 2 men that you knew, those
2 that you had the encounter with ?
Mr. Elkins. No, I did not. I didn't know them. They had a
license that I had run down later and it was a stolen license plate and
it wasn't a proper license plate.
The Chairman. You tried to identify them later ?
Mr. Elkins. That is right.
The Chairman. And you ran into the difficulty of trying to trace
a stolen license?
Mr. Elkins. That is right.
The Chairman. Or someone using a stolen license ?
Mr. Elkins. That is correct.
Mv. Kennedy. Now, Mr. Elkins, I would like to take you back to
that meeting in early January of 1955 when you received the telephone
call from Tom jNIaloney to come up to Seattle
Mr. Elkins. That is right.
Mr. Kennedy. And meet with Tom Maloney and William Langley.
Mr. Elkins. That is correct.
Mr. Kennedy. Now, William Langley had just been elected district,
attorney ; is that right ^
Mr. Elkins. Yes, sir.
Mr. Kennedy. You came up and met Tom Maloney and AYilliam
Langley at the Olympic Hotel.
Mr. Elkins. Yes.
Mr. Kennedy. In a room at the hotel and will you tell the committee
what went on in that hotel room ?
104 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. Well, I asked what is the purpose of the meeting and
they said it is just a discussion about what we are going to do.
Mr. Kennedy. Could you talk a little bit more into the microphone
and also a little louder.
Mr. Elkins. They said they were going to have a discussion about
what was going to take place when Langley went in, and I said, "In
what way?" "Well," he said, "you are going to have a little gambling
and a little this and a little that."
Mr. Kennedy. What is "a little of this and a little of that?"
Mr. Elkins. Card rooms, horse books, and I think he mentioned 3
or 4 houses of prostitution, bootlegging joints, punchboards.
Mr. Kennedy. Who said this to you?
Mr. Elkins. Bill said, "We are going to discuss what is going to go."
Mr. Kennedy. Bill is Bill Langley ?
Mr. Elkins, Bill Langley.
Mr. Kennedy. He was the newly elected district attorney?
Mr. Elkins. Yes, that is correct.
Mr. Kennedy. And he was telling you what was to be allowed to go
in the city ?
Mr. Elkins. That is right. He said, "I want Tom in the picture.
I am going to cut my take with him until he gets going."
Mr. Kennedy. What did he mean by that ?
Mr. Elkins. Well, what the payoff was to him, he told me that he
had to split it with Tom.
The Chairman. That is Tom Maloney ?
Mr. Elkins. That is correct.
Mr. Kennedy. Tom was to come down into Portland?
Mr. Elkins. That is right.
Mr. Kennedy. And you and Tom were to set up this town in this
manner ?
Mr. Elkins. That is right.
Mr. Kennedy. Having these horse books and having the card rooms
and the gambling and after-hours places.
Mr. Elkins. I told him, "I won't be a party to the card rooms."
They are operated under a license and they run their little poker game
or pan game and it is gambling but is has been around there as many
years as I have and I don't feel like trying to muscle in on them.
Mr. Kennedy. So what they were suggesting was to take a certain
cut of the card rooms ; is that right ?
Mr. Elkins. That is right.
Mr. Kennedy. And the card rooms as they operated in Portland
were independent and you felt that nobody could take a piece of them ;
is that right ?
Mr. Elkins. That is right.
Mr. Kennedy. But the other things, the other operations, the gam-
bling and the after-hour places, that was possible?
Mr. Elkins. Yes, sir.
Mr. Kennedy. Now, what did you say when Mr. Langley sug-
gested opening the r> or 4 houses of ]:»rostitution ?
Mr. Elkins. Well, I ]5assed it over, tlie first remark, because I knew
we weren't going to do it.
Mr. Kennedy. Was that actually suggested by ]\Ialoney or was it
suggested by Langley ?
Mr. Elkins. It was suggested by Maloney.
IMPROPER ACTIVITIES IN THE LABOR FIELD 105
Mr. Kennedy. Tom Maloney ?
Mr. Elkins. Yes. He said :
It is okay with Bill for 3 or 1 houses and I am going to talte you down and
introduce you to Ann Thompson.
Mr. Kennedy. A"\1io was Ann Thompson ?
Mr. Elkins. Well, according to Tom, I didn't know her; she was
a professional madam.
Mr. Kennedy. And what did he say about her?
Mr. Elkins. Well, he wanted to introduce me and he said he wanted
her to supervise the houses.
Mr. Kennedy. ^\niat did you say to that ?
Mr. Elkins. I got up to leave and he said :
There is no point in getting mad.
Langley said :
You don't have to go and talk to her ; it was just a suggestion.
Mr. Kennedy. He said it was just a suggestion and that you didn't
have to get mad about it ?
Mr. Elkins. That is right.
Mr. Kennedy. Have you run any houses of prostitution of your
own ?
]\Ir. Elkins. I am not.
Mr. Kennedy. You never have?
Mr. Elkins. No, sir.
Mr. Kennedy. You haven't gotten any income from any houses of
prostitution ?
Mr. Elkins. Not a nickel.
Mr. Kennedy. You are under indictment now for operating on
prostitution ?
Mr. Elkins. That is right.
Mr. Kennedy. Is the indictment against you a correct thing or not ?
Mr. Elkins. No ; it is as phony as it can be.
Mr. Kennedy. You never received any money from any madam ?
Mr. Elkins. Not a nickel ; no.
Mr. Kennedy. And this indictment against you now is not accurate
or true ?
Mr. Elkins. It is not.
Mr. Kennedy. But you have been indicted on it?
Mr. Elkins. I liave ; yes.
Senator McCarthy. Was this indictment obtained by the district
attorney who was also indicted ?
Mr. Kennedy. This was obtained by the State attorney who is not
under indictment.
Senator ISIcCakthy. The district attorney was not the same one?
Mr. Kennedy. That is Mr. Thornton, the State attorney, who is not
under indictment. The district attorney is the one that is under in-
dictment.
Senator McCarthy. Thank you.
Mr. Kennedy. But you say this is not true; you never received
any moneys from any madams.
Mr. Elkins. That is right. I was indicted jointly with two young
fellows and one of them — I was asked by the grand jury if I had ever
loaned this young fellow any money, and I told them that I had. But
106 IMPROPER ACTIVITIES IN THE LABOR FIELD
he didn't let me explain it was to operate bootlegging and afterhour
spots, and gambling.
Mr. Kennedy. You had given this man, you had bankrolled this
man, to operate a bootlegging place ; is that right?
Mr. Elkins. That is correct.
Mr. Kennedy. And it developed that he also went into
Mr. Elkins. It didn't develop. I still don't think that he ever did.
Mr. Kennedy. That he got into prostitution ?
Mr. Elkins. He was supposed to have money with cabdrivers, which
he admitted doing, when they would steer someone there for
gambling, but that is the story the boys told me. One story I didn't
know until after the indictment.
Mr. Kennedy. You hadn't even known one of the boys ?
Mr. Elkins. That is correct.
Mr. Kennedy. But as far as you ever being concerned with prostitu-
tion, you never were.
Mr. Elkins. I have not.
Mr. Kennedy. So when it was suggested to you in the room, with
Tom Maloney and the district attorney, you said you would not have
anything to do with it ; is that right ?
Mr. Elklnts. I said, "I don't want any part of any houses."
Mr. Kennedy. Did they also mention the position that Joe Mc-
Laughlin was to have? Was Joe McLaughlin's name mentioned?
Mr. Elkins. Well, Bill said that he met Joe, and he thought John
Sweeney and Frank Brewster wanted Joe in tlie picture, but he didn't
have too much to say about that at that trip because I left then.
Mr. Kennedy. And you went back to Portland ?
Mr. Elkins. That is correct.
Mr. Kennedy. When was the next meeting?
Mr. Elkins. In 3 or 4 days John Sweeney called me and told me
to come to Seattle in the next day or two and so I went up.
Mr. Kennedy. John Sweeney is now up in Seattle ?
Mr. Elkins. John Sweeney is dead.
Mr. Kennedy. But I mean he was up at Seattle and Clyde Crosby
replaced him in Portland.
Mr. Elkins. That is right. So I went to the teamsters' hall in
Seattle and Joe McLaughlin meets me in the hall and he takes me into
a room and John Sweeney, Tom Maloney, and Joe McLaughlin and
another man was in there, who they introduced me to, but I couldn't
swear what his name is right now.
Sweeney said :
He is one of the boys and you can talk freely in front of him.
They talked about pinballs and punchboards and then he told me :
I want you to sit down with Tom.
Mr. Kennedy. Could you speak up a little bit?
Mr. Elkins. "I want you to sit down with Tom and Joe — ," mean-
ing Tom Maloney and Joe McLaughlin,
and Frank Brewster has ordered me to send Joe McLaughlin down there to
keep Tom out of trouble. So Joe is going to take care of the district attor-
ney. You or Tom are not to tell the district attorney what to do. Let Joe
handle that and Joe can also give you some pointers on how to set up an opera-
tion of this type.
niPROPER ACTIVITIES EST THE LABOR FIELD 107
Mr. Kennedy. Did he say anything about Joe's experience in the
past ^
Mr. Elkins. He said he had plenty of experience and he was a
smart operator.
Mr. Kennedy. So what did you say to that ?
Mr. Elkins. I didn't say anything and he didn't ask me anything.
He was telling me and he didn't ask me.
Mr. Kennedy. So what happened then?
Mr. Elkins. Joe McLaughlin and Tom Maloney and I go together
in the car and take a ride in it. We talked for about an hour and
I told him I wouldn't try to cut in on any local people, but if he
wanted to open a horse book or something of their own, I would help
them. But I didn't feel like cutting them in on a couple of spots
that I had of my own. I was talking about gambling and bootleg-
ging.
Mr. Kennedy. This was while you were driving the car ?
Mr. Elkins. No ; we were parked alongside the curb and we were
discussing that.
Mr. Kennedy. "Was there any discussion about anything that you
could do down there other than gambling and af terhour places ?
]Mr. Elkins. Yes; they were talking about anything, oh, Lord,
that they could get their teeth in.
Mr. Kennedy. Was there any discussion about how the teamsters
or the teamster union would help ?
Mr. Elkins. That is correct. They said with the power of the
teamsters, and their weight behind it, Portland was not an open town
and that the chief of police wouldn't go along with an open town,
and they said either he will go along or the teamsters will get him
moved, meaning the chief of police.
Mr. Kennedy. They were going to get the chief of police moved ?
Mr. Elkins. If he didn't go along. But they thought I was lying
to tliem even at that time and they thought that I was operat-
ing under protection.
^Ir. Kennedy. But they told you that they would have the help
and assistance of the teamster officials in Portland ?
Mr. Elkins. That is correct.
Mr. Kennedy. And that Frank Brewster and John Sweeney were
behind this operation ?
Mr. Elkins. That is right.
Mr. Kennedy. Now, you went back and you had lunch that day,
did you ?
Mr. Elkins. We did : yes, sir.
Mr. Kennedy. And then what did you do ?
]Nfr. Elkins. Well, I went on back to Portland and they came down
a few days later.
Mr. Kennedy. They came down and this is still early January, is
that right?
Mr. Elkins. Oh, no, this is the last of December between Christ-
mas and New Years. I believe it was. I am not positive of the dates,
though, but it was the latter part, of 1954 when we had this talk. I
believe Bill Langley took office on the 2d of January, if I am not
mistaken, and they were in Portland.
89330— 57— pt. 1-
108 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Kennedy. So the meetings up in Seattle had taken place about
the end of December.
Mr. Elkins. That is right.
Mr. Kennedy. And they ultimately came down, Joe McLaughlin
and Tom Maloney, ultimately came down to Portland in the early
part of January.
Mr. Elkins. That is correct.
Mr. Kennedy. Or was it the end of December, or early part of
January ?
Mr. Elkins. It was the early part of January of 1955.
Mr. Kennedy. Now, where did they register at that time?
Mr. Elkins. Multnomah Hotel.
Senator McCarthy. I did not o;et the answer.
Mr, Kennedy. Multnomah Hotel. Did they call you up?
Mr. Elkins. Yes, sir.
Mr. Kennedy. Wlio called you then ?
Mr. Elkins. I believe it was Tom.
Mr. Kennedy. Now, did you have a discussion at that time about
what investigators should be put on the district attorney's staff?
Mr. Elkins. Yes, we did.
Mr. Kennedy. Was Tom reluctant to put anybody on because he
felt thev would get too close to the district attorney ?
Mr. Elkins. That is correct. Langley had decided to put on a police
lieutenant that he had known several years. Tom said:
We don't want anyone close to him because it will give him stealing privileges.
Mr. Kennedy. Because of what ?
Mr. Elkins. That he didn't want any investigator, because it would
put them too close to Langley and it would give them stealing privi-
leges. He went to this police lieutenant and told him that he can't
work for Langley.
Mr. Kennedy. Maloney told him, himself?
Mr. Elkins. Yes, sir, or he told me he told him, and I never checked.
Mr. Kennedy. Now Maloney told you that he had told this police
lieutenant.
Mr. Elkins. That is right.
Mr. Kennedy. And you have given me the name of the police lieu-
tenant.
Mr. Elkins. That is right.
Mr. Kennedy. The next day, did you have another meeting with
them, or with Tom ?
Mr. Elkins. Yes, I believe it was both of them.
Mr. Kennedy. Was your brother there at that time ?
Mr. Elkins. That is correct.
Mr. Kennedy. And also, Joe McLaughlin ?
Mr. Elkins. That is correct.
Mr. Kennedy. And Tom Maloney and yourself ?
Mr. Elkins. Yes.
Senator McCarthy. Could I interrupt for just one minute? I was
absent yesterday for awhile testifying before the Judiciary Commit-
tee and so I may have lost track of some of the testimony. Has it
been brought out yet that Mr. Elkins was supporting one candidate
for district attorney, the teamsters another, and that was one of the
sources of friction ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 109
Mr. Kennedy. It developed yesterday tliat initially that was ?o,
and then the teamsters switched from the incumbent district attorney
who they had backed in the previous election, and they switched to
the district attorney Langley, and then ISIr. Elkins and the teamsters
backed the same candidate.
Senator McCarthy. Could I ask Mr. Elkins a question there ? Did
you finally support McCourt or Langley?
Mr. Elkins. Langley.
Senator McCarthy. In other words, you went along with the team-
sters on it?
Mr. Elkins. That is right, and I furnished the money.
Senator McCarthy. I would like, Mr. Chairman, if I may to say
this : The Chair made a statement in the opening in which he applauded
the witnesses, and I assume this witness also, and I said that I agreed
with the Chair wholeheartedly. I would like to make it clear that I
agree insofar as individuals come in here to testify. I do not know
anything about this man's background and I have just been handed an
affidavit by a Mr. Crosby who wants to testify, and I know nothing
about Crosby.
I would like to make it clear that I am not endorsing the testimony
of this or any witness. I hope I make myself clear in that, Mr.
Chairman.
The Chairman. All right, proceed.
Mr. Kennedy. Mr. Elkins, you had this discussion about the inves-
tigator. Then the following day you had a meeting with Joe
McLaughlin and Tom Maloney and your brother. Then, at that time,
did you discuss the setup of the town gambling and bootlegging ?
Mr. Elkins. That is right.
Mr. Kennedy. And the craps and the various other games?
Mr. Elkins. That is right.
Mr. KJENNEDY. At that time, how many bootlegging joints were
there going in the city of Portland ?
Mr. Elkins. I had 2 and there was possibly another 2 running.
Mr. KJENNEDY. Did you feel that there was room in the adminis-
tration to take any more than that ?
Mr. Elkins. No.
Mr. Kennedy. Did you also discuss the pinballs, and pinball oper-
ations ?
Mr. Elkins. Yes, I did.
Mr. Kennedy. Did you discuss how much money was to be paid,
and how much money you were supposed to pay each month to Maloney
and McLaughlin, and Langley ?
Mr. Elkins. Yes ; I did.
Mr. Kennedy. Now, would you tell the committee what proposition
was made to you and by whom at that time ?
Mr. Elkins. I don't know how to answer that.
Mr. Kennedy. First, you can tell what discussion took place, and
I am not asking you at this time what you did.
Mr. Elkins. Yes. I was asked for $2,000 a month for Bill Langley.
Because he had to cut it with Tom Maloney.
Mr. Kennedy. That he had to cut it with Tom Maloney?
Mr. Elkins. That is correct.
Mr. Kennedy. In addition to that, were you supposed to pay
certain moneys to Maloney and McLaughlin ?
110 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. xinything we could get going.
Mr. Kennedy. You were supposed to split with tliem (
Mr. Elkins. Yes, sir.
Mr. Kennedy. But you were supposed to give William Langley
$2,000 outright?
Mr. Elkins. That is right.
Mr. Kennedy. And it was to go through Joe McLaughlin ?
Mr. Elkins. That is correct.
Mr. Kennedy. That was explained to you at that time?
Mr. Elkins. That is right.
Mr. Kennedy. Did you discuss a lesser figure at that time that you
might give?
Mr. Elkins. Yes; I did, but about that time John Sweeney makes
a trip down to Portland again, and again he don't ask me, he tells me :
You are to take orders from .Toe and I want you and Joe and Tom to get
along together.
Mr. Kennedy. Did you make these arrangements that they
suggested ?
Mr. Elkins. No ; I didn't.
Which arrangements are you talking about ?
Mr. Kennedy. Did you pay McLaughlin any money for William
Langley ?
Mr. Elkins. I discussed that and if I am forced to answer that
question I would rather answer it in executive session.
The Chairman. Without objection, we have a transcript that will
show these points for executive session.
Senator McCarthy. What is the question ?
Mr. Kennedy. On the amount of money that he had paid to the
district attorney. First, there the request was that he pay $2,000 a
month to the district attorney through Joe McLaughlin, and then I
asked him the question of whether he ever paid this, or any moneys,
directly, and I am asking him whether he paid this or any moneys
directly or indirectly to the district attorney.
Senator McCarthy. And he wants to answer in executive session.
]\Lay I say, Mr. Chairman, that I can see no reason, if I may have
the Chair's attention, why a c(uestion such as this should not be
answ^ered in open session. There is quite a contest, as we all under-
stand, between this young man and some other elements in Portland,
and I believe that the answer should be made in open session.
Mr. Kennedy. If I might say, I think that the problem is going
to be on this that if he states that he gave money to the district attorney,
then he can very well be indicted. Now, I think that I have received
from unimpeachable source that he paid certain moneys to the district
attorney, directly and indirectly, He is willing to answer that ques-
tion in executive session with the understanding that the transcript
is not transmitted to the State's attorney out there in the State of
Oregon. If he can answer that question with the understanding that
he is not going to be prosecuted for giving money to the district
attorney, and if w^e can give him those assurances, it is possible that
he will answer that question.
Senator JMcCarthy. May I say, Mr. Kennedy, and I do have great
respect for your judgment in these matters, that Mr. Chairman I do
not believe we can, No. 1, give the witness any assurance that evidence
IMPROPER ACTIVITIES IN THE LABOR FIELD HI
he <^ives in executive session will ]iot be transmitted to the proper
authorities. I do think that statements made by a witness to the staff
in the course of an investigation when it is given under the under-
standing that it will be treated in confidence — I think that that should
be respected.
Now however, as a committee, I do not believe that we can condone
any violation of law. The witness of course would be equally guilty
whether — strike that — the testimony would be equally effective wliether
he gave it in executive session or open session. If there is a district
attorney out in Portland, and I do not know this man Langley at
all, and I have never met him, and I do not even know what his politics
are — I think if he received money the public is entitled to know that.
I frankly think, Mr. Chairman, that this is a question that should
be answered, unless of course the witness takes the fifth amendment,
and I gather he does not intend to do that at all. I get the impression
he intends to give the complete story.
The CiiAiRMAX. The Chair a few moments ago, or a little earlier,
on one particular question, and I do not recall the exact nature of it,
submitted to the committee that we would hear his testimony on that
point in executive session. The committee agreed. I am reluctant to
force the witness at this stage of the hearings to answer a question
that he says he is perfectly willing to answer in executive session. I
know this committee cannot promise the witness any immunity. We
cannot assure him that testimony taken in executive session will not
at some time maybe early and maybe later, be released for the public.
This witness has been very cooperative and I want to show him
every courtesy possible and I am going to rule for the moment until
the committee can
Senator McCarthy. Before you rule, Mr. Chairman, may I make
this observation, that if there is evidence of violation of the law on the
part of the district attorney or anyone else, given in executive session,
I strongly urge that the committee make that information available
to a grand jury. I may not prevail. But I think the witness should
know that as the Chair has indicated, he has cooperated, but there
should be no privileged sanctuary in executive session.
The Chairman. Now, if you will permit the Chair to rule, the
Chair is going to rule that for the present we will not compel this
witness to testify or to answer to questions propounded to him whether
he gave money to the district attorney. The Chair will, during the
day, before this witness leaves, have an executive session of this com-
mittee, at which time the testimony that the witness might be able to
give will either be heard or the committee will be briefed on it and
then the committee will determine. The Chair only makes this as a
temporary ruling, and not stating at the time how he will resolve it
so far as he is concerned at this time, but I do want to proceed.
There may be justification for the witness' request, and there may
not be. If we undertake to argue it here at this time we would only
dehij^ the proceedings.
So as early as it is possible to do so, possibly just before noon, or
just before Ave convene this afternoon, the Chair will call the com-
mittee together and we will get briefed on this point and whatever is
done will be committee action by a majority of the committee.
All right, let us proceed.
112 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. You had some discussion at that time about tlie pin-
balls and what was going to be your job in this whole thing, Mr.
Elkins?
Mr. Elkins. I was to be the front man.
Mr. Kennedy. As far as picking up the payments at the various
places, was that your job ?
Mr. Elkins. Yes.
Mr. Kennedy. And then you were to make an accounting to Mc-
Laughlin and Tom Maloney ?
Mr. Elkins. That is correct.
Mr. Kennedy. That includes places that were to be opened in the
Chinese part of the town ?
Mr. Elkins. All over the entire town, yes, and the Chinese part,
too.
Mr. Kennedy. Did they say to you the next day that they wanted
a list of everything that was running in town ?
Mr. Elkins. That is correct, but I couldn't give them a list; be-
cause I wasn't picking the money up from the places, and what money
I was giving them I was giving them out of my pocket. And now I
have answered the question about giving them the money, and so
there shouldn't be any more difficulty.
The Chairman. The witness has now answered that he had given
them the money.
Mr. Elkins. Yes, but it was my own money, and I didn't pick any
money up from anybody and give it to them, and I gave them my
own money.
The Chairman. The witness has testified to it and so we will pro-
ceed with further interrogation on that point. The question a while
ago was whether you gave the $2,000 that they asked for.
Mr. Elkins. I did not give them the $2,000.
The Chairman. That was to Langley.
Mr. Elkins. I didn't give him the $2,000.
Mr. Kennedy. Before the witness testifies, could I just talk to the
chairman about this matter ?
The Chairman. All right.
(Present at this time are Senators McClellan, Ives, Kennedy. Mc-
Namara, Mundt, and McCarthy.)
(A short recess was taken.)
The Chairman. The committee will come to order.
After a brief conference which you have all observed, the commit-
tee will not at this time compel the witness to answer specifically with
respect to some payments that he has made. There are a number
of other factors that vv^ill be considered by the committee in executive
session after it has heard the story, the whole story, at which time the
committee will determine how to proceed further with respect to this
particular transaction. There are involved, as 3^ou have already ob-
served, many indictments of people who are iuA'olved in this hear-
ing. Others may be obtained and rightfully so, from information we
have.
This witness has fully cooperated so far with the committee, and I
can say that for him. He has assured us that he wants to cooperate
to the very limit, and he does not want to take the fifth amendment in
any instance. I believe that is correct, Mr. Elkins ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 113
Mr. Elkins. That is correct.
The Chairman. But out of certain considerations which the com-
mittee will weigh without predetermining now what is right and best
Tinder the circumstances we will resolve this in an executive session.
In the meantime, the witness has further testimony to give, and we
will proceed with that at the present.
Mr. Kennedy. Now, they wanted you to go around and make your
collections from these various places, is that right ?
Mr. Elkins. That is right.
Mr. Kennedy. And you were then to give an accounting to Joe Mc-
Laughlin and Tom Maloney ? •
Mr. Elkins. Yes, sir.
Mr. Kennedy. Of how much you were collecting?
Mr. Elkins. That is right.
Mr. Kennedy. Did they say that they could get the mayor of the
town to open up and allow more places to operate ?
Mr. Elkins. They felt that between Crosby and John Sweeney,
they could, yes.
Mr. Kennedy. And did they want a list from you as to the places
that were operating and which you were interested in so that they
could make sure the district attorney did not close those places?
Mr. Elkins. That is correct. They wanted a list of what places
they thought I was picking up money from, for protection.
Mr. Kennedy. Were there discussions about the prostitutes and
operating houses of prostitution ?
Mr. Elkins. There was, yes.
Mr. Kennedy. Was there any specifically suggested ?
Mr. Elkins. Tom Maloney told me that he had Ann Thompson
coming in by air, and he would like to have me meet her at the airport.
Mr. I^nnedy. So did you meet her ?
Mr. Elkins. I did.
Mr. Kennedy. Wliat convei^ation took place ?
Mr. Elkins. I didn't know her, but she recognized me by the
description she had been given. I put her in the car and we drove up
a quarter of a mile from the airport. She got right down to business.
I listened, and I told her I didn't think that I could do her any good,
and I believe the answer she gave me was she didn't at all care be-
cause she would only get such a small percentage of it that she didn't
care whether she operated or not, but she didn't want to be blamed
for it.
The Chairman. She would get such a small percent ? Did she indi-
cate who would get the other percent ?
Mr. Elkins. She said Tom Maloney, and other people, and she did
not name who the other people were. I believe that I asked her, but
if she ever told me I don't recollect the name.
The Chairman. Was she in a similar operation somewhere else?
Mr. Elkins. I had been told that, yes. Not right at that time, I
don't think she was.
The Chairman. But she had previously been?
Mr. Elkins. I believe she had told me that she had previously.
The Chairman. And operated under some arrangement with these
people who were trying to bring her down there ?
114 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. That is right.
Mr. Kennedy. Did you see Ann Thompson the second time?
Mr. Elkins. Yes, she called me.
Mr. Kennedy, How much later was this?
Mr. Elkins. Several weeks later. I don't exactly remember
exactly how long. She called me from the New Heathman Hotel,
and asked me would I drop up and talk to her, and I did.
Mr. Kennedy. And what was discussed at that time?
Mr. Elkins. The minute I walked in the room she said "Just take
it easy. I am not trying to get you to change your mind. I don't want
'to operate. But I want you to tell Maloney and his people that I was
here and talked to you, but we couldn't get together,'' I believe is what
she said, as near as I can remember. That might not be word for word,
but that was the gist of it. She again repeated that she couldn't
operate 1 or 2 or 3 places on the small percentage she would get. If
she had a whole hatful of places, she probably could make a dollar.
Mr. Kennedy. So she wasn't very interested in it?
Mr. Elkins. She was not. She said flatfooted she was not inter-
ested.
Mr. Kennedy. You were not interested in setting her up in Port-
land?
Mr. Elkins, I definitely was not. That is the only two times I ever
seen Ann Thompson.
Mr. Kennedy. You have not seen her since that time ? '
Mr. Elkins. No, I have not.
Mr. Kennedy, You have not talked to her?
Mr. Elkins. No, I have not. I am not sure whether she is in
Seattle or Tacoma. She told me she had, I believe, an apartment
house in one of the two places.
The Chaieman, At this time, the witness now testifying will stand
aside. He will be recalled later.
I believe we will call the witness Ann Thompson,
Senator McCarthy. Mr. Chairman, before the witness stands aside,
I do have many questions to ask this witness,
Mr. Kennedy, He is coming back.
Senator McCarthy. Will he be available?
The Chairman. He is only standing aside momentarily. I thought
we would fill in with the other at this point. The witness will just
stand aside.
(Present at this point: The Chairman, Senators Kennedy, Mc-
Namara, McCarthy, Mundt, and Goldwater,)
Mr. Kennedy, The witness does not want her picture taken.
The Chairman. Just a moment.
Photographers? Let me have your attention.
Have a seat. You may be sworn first.
Will you stand and be sworn?
The photographers will not take any pictures until the Chair gives
vou permission to do so.
You do solemnly swear that the evidence vou shall give before this
Senate select committee shall be the truth, the whole truth, and
nothing but the truth, so help you God ?
Miss Thompson, I do.
IMPROPER ACTIVITIES EST THE LABOR FIELD 115
TESTIMONY OF ANN THOMPSON
The Chairman. State your name.
Miss Thompsox, Ann Thompson.
The Chairman. Where do you live?
Miss Thompson. Seattle.
The Chairman. Where do you live?
Miss Thompson. Seattle.
The Chairman. You are appearing here under subpena,, are you?
Miss Thompson. Yes, sir.
The Chairman. Have you conferred with members of the staff
regarding tlie testimony that you will be iniiuired of ?
5liss Thompson. Yes.
The Chairman. You imderstand that j^ou have the right to have
counsel present if you desire when you testify ?
Miss Thompson. I do.
The Chairman. Have you elected to waive comisel?
Miss Thompson. Yes.
The Chairman. There is a rule of the committee that when a witness
is testifying, if they request it, the committee may grant to them the
right to testifj^ without interruption or pictures being taken while
they testif}'. Since you do not have an attorney, and since the Chair
has been advised that you requested that no pictures be taken while you
testify — is that correct?
Miss Thompson. Yes.
The Chairsian. The Chair submits it to the committee. The Chair
had that request of another witness yesterday who was not cooperative,
but who took the fifth amendment.
Without objection, that right will be granted to this witness.
Senator McCarthy. Mr. Chairman, much as I hate to impose on the
young men taking pictures, I believe they should be ordered not to use
the pictures that have been taken, and also that the television film
that has been taken not be used. Otherwise, it is rather meaningless
to order no further pictures taken.
Miss Tii03iPS0N. Thank you.
Senator McCarthy. I understand this has been a cooperative wit-
ness, and I think she should be given that consideration.
The Chair:man. The Chair will instruct those that took pictures,
particularly while the Chair was trying to get their attention, not to
use those pictures.
"\^nien the witness is off the stand, the committee has no control over
her or over you in that respect. Wliile she is testifying, from the time
she comes to the stand to testify, she is under the jurisdiction of this
committee, and its rules of procedure will be observed. I trust that is
understood. I think the committee, this one and others on which I
serve, has always been courteous and accommodating to the press, to
the photographers, to all who have a right to be at the hearing.
The Chair will indulge a good many things, but when he makes an
order he expects that order to be obeyed.
Mr. Counsel, you may proceed.
Mr. Kennedy. Miss Thompson, you have met Mr. Tom Maloney,
have you not?
Miss Thompson. Yes.
Mr. Kennedy. Could you speak up a little bit?
116 IMPROPER ACTIVITIES IN THE LABOR FIELD
Miss Thompson. Yes.
Mr. Kennedy. Could you tell us the circumstances under which you
met Tom Maloney ?
Miss Thompson. Well, I knew him slightly. I never knew him real
well.
Mr. Kennedy. You do not remember the circumstances under which
you met him ?
Miss Thompson. Well, yes, I think I can explain that. Do you
mean when he asked me to go to Portland ?
Mr. Kennedy. Why don't you explain that, yes.
You had known him prior to that time ?
Miss Thompson. Well, I had known him in a casual way, but not
too well, no.
Mr. Kennedy. Wliat did he say to you about coming to Portland?
Will you tell us about that ?
Miss Thompson. He called me on the phone, and he asked me if
I would come down to the hotel to see him. He wanted to talk to me.
Mr. Kennedy. This was up in Seattle ?
Miss Thompson. Yes, that was in Seattle. And when I arrived
there, he said "Jimmy Elkins asked me to tell you to phone him, that
he had something interesting for you."
That is about all that we talked about, and not too much of any-
thing that I can remember.
Mr. Kennedy. Wliy was it that you went into Seattle to see him
at the hotel?
Miss Thompson. I lived in Seattle at the time.
Mr. Kennedy. What kind of a proposition did he
Miss Thompson. He asked me to call Jimmy, that Jimmy Elkins
wanted to talk to me. Well, I phoned, after that I phoned Jimmy
Elkins, and he asked me to come to Portland.
Senator Mundt. Did you know Jimmy Elkins before that ?
Miss Thompson. I knew of him. I never knew him personally, no.
Senator Mundt. What do you mean you knew of him ?
Miss Thompson. Well, it is kind of hard to explain. Just like
you know someone by reputation, you know. I knew he had been in
Portland for a lot of years, and he knew everything that was going
on, or supposedly he did. I don't know too much about it.
Senator Mundt. You knew the kind of business he was in ?
Miss Thompson. Yes.
Mr. Kennedy. Did you know him as a man that ran houses of ill
fame?
Miss Thompson. I wouldn't say that, no.
Mr. Kennedy. Had you ever Im own him to run any such houses?
Miss Thompson. No, I never did.
Mr. Kennedy. You. never knew that he was in that kind of business ?
Miss Thompson. I knew that he was a man about town, that he
€ould help, you know, anyone in my business.
Mr. Kennedy. But you never knew that he was associated with it ?
Miss Thompson. No, I really wouldn't say that.
Mr. Kennedy. So after this conversation with Tom Maloney in
which he just said that Jimmy Elkins wants to talk to you, then, know-
in o- Jimmy Elkins was a man about town, you went down to Portland,
did you?
IMPROPER ACTIVITIES IN THE LABOR FIELD 117
Miss Thompson. No. I phoned Jimmy in Portland. He gave me
his phone nnmber. Jimmy said "Come on down. I want to talk to
you."
Mr. Kennedy. Did you go on down ?
Miss Thompson. I did. I took the plane and went down to Port-
land.
Senator McCarthy. Let us see if I have this picture of Elkins cor-
rectly in mind. He was the underworld king, but he did draw the
line at taking any part in running houses of ill fame, is that roughly
correct?
Miss Thompson. Well, at the time I didn't know, until I went to
Portland, until I met him.
Senator McCarthy. He can be correctly described as the head of
the underground syndicate, but as far as you know he did draw the
line at taking any part in houses of ill fame?
Miss Thoivipson. He drew the line in this way : I went to Portland
and I met him. I told him what I was after, and he said "Well, I
don't know. I will try. I will help you if possible, but," he says, "I
don't know." There wasn't much said. I was only there a short time.
He says, "Well, you call me, or I will call you," something like that,
"in a week or so." So I didn't hear from him any more.
So I phoned him back. He says, "Well, I can't talk on the phone.
Come on over." So I went back to Portland again and I met him at
the New Heathman Hotel, I believe. I registered in there and I
phoned him. He came up. Then he says "Well, there is not much we
can do," he said.
But, anyway, he just discouraged me and talked me out of it, and
I was already talked out of it to start with.
The Chairman. Why ?
Senator McCarthy. There is one more question. Mr. Chairman,
if I may.
Perhaps my original supposition was somewhat in error. He did
show some interest in this project, but dropped it after a couple of
weeks, and made no arrangements with you on it ; is that right ?
Miss Thompson. That is right; he did. First he sounded a little
encouraging, and when I saw him the second time he was just al-
together different.
Senator McCarthy. As far as you know, Elkins has had nothing
to do with the houses of this sort?
Miss Thompson. As far as I know, no.
Senator McCarthy. Thank you, Mr. Chairman.
The Chairman. May I ask this: You said you had already been
talked out of it.
Miss Thompson. I had.
Were you finished ?
Will you repeat it, please?
The Chairman. Yes. A moment ago you said when you had the
second visit with him, when he came to the hotel, he began to dis-
courage you, and you said you did not care because you had already
been talked out of it.
Miss Thompson. No; that isn't the way I meant. No one talked
me out of it. I just wasn't enthused about it.
The Chairman, He has testified that you were not enthused about
it, and that you made a statement at the time, either at that time or
118 IMPROPER ACTIVITIES IN THE LABOR FIELD
some other, both times, maybe, that you were not interested in it
because you would not make enough out of it, that your cut in the
business would not give you much profit.
Did you make some similar statement ?
Miss Thompson. That is not so. That is not so. That was never
said.
The Chairman. You did not make that statement ?
Miss Thompson. No, sir.
The Chairman. He said, as I remember, Mr. Maloney and — what
is the other name? — Joe McLaughlin, I believe, were to have some
interest in your operation.
Miss Thompson. That is not so.
The Chairman. Why would Mr. Maloney make the arrangements
if he was not to have an interest?
Miss Thompson. Mr. Maloney told me that Jimmy Elkins asked
him for me to phone. That is the way the whole thing came up. I
wasn't thinking about it until this, and I thought "Well, I will go
ahead."
The Chairman. You do not know what conversations had taken
place between Maloney and Elkins prior to Maloney telling you to
phone him?
Miss Thompson. No.
The Chairman. Proceed
Senator Mundt. Following up on that, Mr. Chairman, this is leav-
ing me completely confused now.
In the first place, you said you had been talked out of it and then
you said no, you talked yourself out of it.
Miss Thompson. No ; no one talked me out of it.
Senator Mundt. You said you were not interested ?
Miss Thompson. That is right.
Senator Mundt. You did not pick up an airplane ticket and fly
down to Portland to tell him you were not interested. When did you
lose interest?
Miss Thompson. I lost interest after I talked to Mr. Elkins the first
time.
Senator Mundt. Wliat happened in that conversation to cause you
to lose interest?
Miss Thompson. I don't know. I wasn't in the business at the
time, and I did want to get back in it, but I just thought, "Oh,
to heck with it; let it go."
Senator Mundt. You had purchased a ticket at your own expense ;
had you not?
Miss Thompson. Correct.
Senator Mundt. So you certainly were interested when you left
the airport at Seattle ?
Miss Thompson. Yes ; I was.
Senator Mundt. What happened after you arrived at the airport
at Portland which caused you to say "Oh, heck ?"
Miss Thompson. After I talked to Jimmy, it just didn't sound
so
Senator Mundt. I am trying to find out what transpired in your
conversation with Jimmy that caused you to lose your ardor for the
elm?
IMPROPER ACTIVITIES IN THE LABOR FIELD 119
Miss Thompson". Well, it was a strange town to me. I had never
been there before, and he didn't seem so encouraging ; so I left.
Senator Mundt. Maybe this would be it : You talked with Jimmy-
about the law-enforcement situation and the possibility of protection
and what chance you might be hazarding if you went into the business
there?
Miss Thompson. No ; we didn't go into that, But it seemed like I
was going to have to have a lot of money to open up, and I didn't have
it. That is the main thing that discouraged me, as far as I was con-
cerned.
Senator Mundt. Did Jimmy know something about the amount of
capital investment required in that type of enterprise?
Miss Thompson. No. The amount came up. He said he would look
around. I think he mentioned a hotel which ran up into several, quite
a few, thousand dollars, and I didn't liave that much money.
Senator Kennedy. You have stated that you came down, and Mr.
Maloney said Mr. Elkins wanted to see you?
Miss Thompson. Yes, sir.
Senator Kennedy. Did it seem odd to you that if Mr. Elkins wanted
you to come down and asked Mr. ]\Ialoney to make the appointment, in
his first conversation with you he discouraged you ?
Miss Thompson. Mr. Maloney said that Mr. Elkins did not want
to contact me personally, for reasons of his own. I don't know.
Senator Kennedy. Does it seem strange to you that if Mr, Maloney
fixed an appointment up with Mr. Elkins, on the assumption that
Mr. Elkins wanted you to come down, that when you had your first
conversation with him he discouraged you ?
Miss Thompson. I will tell you. At the time I guess I was too much
of an eager beaver. I shouldn't have bothered. I thought, "Well,
what have I got to lose?" It was a short trip,: and so I went on.
Senator Kennedy. There was no conversation, when Mr. Maloney
talked to you, that you would understand that Mr. Maloney would
have any interest in this ?
Miss Thompson. I did not.
Senator McNamara. Mr. Chairman?
The Chairman. Senator McNamara?
Senator McNamara. I wonder who initiated this proposition, if
you can call it that? How did it come about? Whose idea was it?
AVliere did it start?
Does the staff know or should we ask the witness?
Mr. Kennedy. I am sorry. Senator.
Senator McNamara. Who initiated this, according to the informa-
tion you have?
Mr. Kenntcdy. Not only according to the information we have,
but according to her own testimony, Tom Maloney did. Tom Maloney
contacted IMiss Ann Thompson.
Is that correct?
Miss Thompson. He told me Jimmy Elkins asked him to phone me.
Mr. Kennedy. So you went down and did the favor. You bought
a ticket. This is Tom Maloney who you did not know very well ?
Miss Thompson. I knew of him ; yes.
Mr. Kennedy. He went to the trouble to get in touch with you,
have you come into the hotel and have a meeting with vou, Tom
Maloney? "^ '
120 IMPROPER ACTIVITIES IN THE LABOR FIELD
Miss Thompson. I didn't see Tom Maloney in Portland at any time.
Mr. IvENNEDY. Did you have a meeting with him in Seattle?
Miss Thompson. That one time, that is all.
Mr. Kenxedy. You had a meeting with him in a hotel room in
Seattle ?
Miss Thompso>7. I went down to the hotel.
Mr. Kennedy. He wanted to tell you that Jimmy was interested ?
Miss Thompson. Yes.
Mr. Kennedy. So you went to Portland and found Jimmy was not
interested ?
Miss Thompson. Yes.
Mr. Kennedy. So you came back and went to Portland again and
still found Jimmy not interested ?
Miss Thompson. Yes.
Mr. Kennedy. Did you have any conversations with Tom Maloney ?
Miss Thompson. No.
Mr. Kennedy. You happened to go down the second time again ?
Miss Thompson. Yes; on my own. I called Jimmy on the phone
and he said "Come on down, I don't want to talk on the phone."
Mr. Kennedy. Why would Jimmy want you to come down if he was
not interested ?
Miss Thompson. Would you please ask Jimmy?
Mr. Kennedy. Why would he say for you to come down if he was
not interested ?
Miss Thompson. That I don't know.
Mr. IvENNEDY. Would he not give you some reason ? He keeps say-
ing to come on down and he is not interested ?
Miss Thompson. I called him.
Mr. Kennedy. So you came down and he still was not interested ?
Miss Thompson. That is right.
Mr. Kennedy. The first time you were sent down because Tom
Maloney thought you should talk to Jim Elkins, right?
Miss Thompson. I got the impression that Jimmy asked him to
tell me to come down there.
Mr. Kennedy. Then when you got down there, Jimmy was not
interested?
Miss Thompson. He wasn't so discouraging. He said he would
look around and see what he could do.
Mr. Kennedy. Did he set it up ?
Miss Thompson. No.
Mr. Kennedy. You had a pretty good reputation in the State of
Washington for running these homes.
Miss Thompson. Thank you.
Mr. Kennedy. So if he got you all the way down there and some-
body as good as you and brought you down there, he must have figured
he was going to go someplace with it. Then he brings you down
there and then he is not interested. Do you not think that is a funny
way to handle it?
Miss Thompson. I am perfectly willing to tell you the truth about
everything. At that first meeting, Jimmy wasn't too discouraging.
Mr. Kennedy. Did he call you again and say, "I have a place, come
down again" ?
Miss Thompson. No.
Mr. Kennedy. What happened ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 121
Miss THOMrsoN. He said "I will phone you in a week or so."
Mr. Kennedy. He called you in a week ?
Miss Thompson. No ; I called him.
Mr. Kennedy. You called him ?
jNIiss Thompson. Both times, the first and the last time.
Mr. Kennedy. You called him?
Miss Thompson. Yes, sir.
Mr. Kennedy. Tom Maloney— I get this— Tom Maloney said
"Jimmy Elkins is interested," and then you called Jimmy Elkins up ?
Miss Thompson. Yes.
Mr. Kennedy. Jimmy Elkins didn't call you. You called Jimmy
Elkins up after hearing from Tom Maloney, and then you took a trijj
at your own expense down to Portland ?
Miss Thompson. Yes.
]Mr. Kennedy. And then you talked with Jimmy, and Jimmy acted
slightly interested, and said, "I will call you soon."
Miss Thompson. Right.
Mr. Kennedy. Did he call you then ?
Miss Thompson. No.
]Mr. Kennedy. You called him again ?
Miss Thompson. Yes.
Mr. Kennedy. Then you went back to Portland ?
Miss Thompson. That is w^lien he said
INlr. Kennedy. Let us find out. Did you go back to Portland
again ?
Miss Thompson. Yes.
Mr. Kennedy. What did you do then? Did Jimmy say, "I have
3 or 4 places for you" ?
]Miss Thompson. No.
Mr. Kennedy. Did he discourage you some more?
Miss Thompson. Real good that time. I registered at the hotel and
I phoned him,
jNIr. Kennedy. You phoned him a third time ?
Miss Thompson. The second time. I only talked to him twice.
]Mr. Kennedy. I thought vou talked to him the first time after
talking to Tom Maloney and the second time after coming down there.
Miss Thompson. You are confusing me. The first time after I
talked to j\Ir. Malone}^, he told me that Jimmy wanted me to phone
him. I did. That was the first time.
The Chairman. That was long distance?
Miss Thompson. Yes.
Senator McCarthy. Could I interrupt?
Senator McNamara. May I pursue this question, Mr. Chairman, a
little further?
The Chairman. Senator McNamara had the floor.
Senator McNamar.\. There was some indication on the part of our
chief counsel that there was some previous testimony by this witness.
Was that sworn testimony?
]Mr. Ivennedy. I didn't mean to say that. I meant to say that she
said, herself, that the first contact that she had about the operation
in Portland was from Tom ISIaloney.
Miss Thompson. No.
Mr. Kennedy, Should I go through it again. Senator ?
122 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chaikmax. I think I can straighten it out. Just a moment.
The first time this ever came to your attention or to your interest
was when Tom Maloney phoned you to come down to the hotel to
see him ^
Miss Thompson. Right.
The Chaieman. At that time, he told you that Elkins was inter-
ested in this matter and asked you to call him?
Miss Thompson". Right.
The Chairman. You did call him ?
Miss Thompson. Yes.
The Chairman. After calling him, you, at your own expense, went
down to Portland to see him ?
Miss Thompson. Right.
The Chairman. At that time you talked about it, and he said he
would look around and see what could be done, and would call you
back?
Miss Thompson. Right.
The Chairman. He did not call you, as he suggested he would ?
Miss Thompson. No.
The Chairman. In due time, however, you called him?
Miss Thompson. Yes.
The Chairman. Did you call him at that time before you went to
Portland or after you arrived in Portland ?
Miss Thompson. That is something I don't remember. I must
have phoned him before I went to Portland. If not, I — yes, I know
I did.
The Chairman. You called him before you went to Portland ?
Miss Thompson. Yes, and I told him I was coming.
The Chairman. He told you he did not want to talk about it over
the telephone?
Miss Thompson. Yes.
The Chairman. Therefore, you went to Portland?
Miss Thompson. Yes.
The Chairman. You went to a hotel ?
Miss Thompson. Yes.
The Chairman. And you called him from the hotel ?
Miss Thoimpson. Yes.
The Chairman. And he came to see you ?
Miss Thompson. Yes.
The Chairman. That is the way it all came about ?
Miss Thompson. That is right.
The Chairman. The first time he told you he would look around?
Miss Thompson. Yes.
The Chairman. The second time what did he tell you ?
Miss Thompson. He said "Oh, I don't think — it is going to cost a
lot of money." He said, "I don't think I can find anything or do any-
thing for you," so I said "Fine."
The Chairman. In other words, he was very discouraging?
Miss Thompson. Yes.
The Chairman. But by that time you said you had concluded your-
self that you were not very much interested ?
Miss Thompson. That is right.
The Chairman. Is that the true picture?
EMPROPER ACTIVITIES IN THE LABOR FIELD 123
Miss Thompson. That is the truth.
Senator McNamara. Why is this witness here, then, under those
circumstances ?
The Chairman. Why is this witness here ? To show the connection
of certain interests trying to get her down there. All efforts do not
succeed.
Senator McCarthy ?
Senator McCarthy. I would like to ask a few questions. I hesi-
tate because I do not want to ruin— Mr. Kennedy, if I may have your
attention — I do not want to ruin the sequence of Mr. Kennedy's
interrogation.
If you hnd I am doing so, I will be glad to desist. I would like to
get down to what I consider the meat of this case, just in a few ques-
tions. As I say, if you are intending to get to this later, I will desist.
Let me ask you tliis : The district attorney at that time in Portland
was Langley, right?
Miss Thompson. I wouldn't know. I don't know a thing about
Portland.
Senator McCarthy. Did you hear the figure of 11,000 mentioned?
Miss Thompson. How much ?
Senator McCarthy. 11,000 girls that could be used under you?
Miss Thompson. No. No. Never.
Senator McCarthy. Did you hear the figure $3 to be paid by each
one, either per day, or week, or month ?
Miss Thompson. There was nothing said about that.
Senator McCarthy. How much were you to pay and what w^ere you
to get in return ?
Miss Thoimpson. There wasn't a thing said about it.
Senator McCarthy. In other words, you did not talk about any
payoff you would make at all ?
Miss Thompson. No.
Senator McCarthy. This man Tom Maloney, what was he going
to do for you ?
Miss Thompson. As far as I know, nothing.
Senator McCarthy. See if I am right on this: Was it not true that
Maloney, apparently without authority, promised that if you would
kick in a certain amount per girl, that you would be allowed to operate
free and clear; otherwise, that you would get no laundry, no liquid
refreshments, no food, nothing else ? Was that not the deal ?
Miss Thompson. Senator, you are way ahead. There was not a
thing like that said between Maloney and I.
Senator McCarthy. There must have been something said. You
traveled from Seattle to Portland to make some kind of a deal.
Miss Thompson. Certainly.
Senator McCarthy. I want to know what the deal was.
Miss Thompson. I was to get the deal, whatever was going to hap-
pen, through Mr. Elkins, not from Mr. Maloney.
Senator McCarthy. What was Mr. Elkins to have given you ?
Miss Thompson. Well, I don't know now. He has given me nothing.
Senator McCarthy. Well, you talked to him in a hotel room. How
long did you talk to him ?
Miss Thompson. In the hotel room ?
Senator McCarthy. Yes.
89330— 57— pt. 1 9
124 IMPROPER ACTIVITIES IN THE LABOR FIELD
Miss Thompson. I doubt whether we were there an hour at the most.
Senator McCarthy. In an hour's time, did you not discuss what,
if anything, Elkins was to get out of this deal ?
Miss Thompson. No.
Senator McCarthy. You never mentioned that?
Miss Thompson. Never.
Senator McCarthy. Miss Thompson, let me say to you you appeared
in executive session
Mr. Kennedy. No, Senator.
Senator McCarthy. Is not this the girl who appeared ?
The Chairman. No ; it was another.
Senator McCarthy. I beg your pardon.
Again, just as one final question, you had a conversation for about
an hour, and as far as you know Maloney was not a member of the
teamsters' union, is that right?
Miss Tho^ipson. I didn't know. I had no idea what he was or who
or what. I just knew him many j^ears back as — well, I just knew him.
That is all.
Senator McCarthy. Did anyone that claimed to be a member of
the teamsters' union promise you anything?
Miss Thompson. No, sir.
Senator McCarthy. You are certainly shedding a lot of light on
this.
In other words, you had an hour's conversation with Elkins. Yon
recognized that he was head of the underworld syndicate at that time,
is that right?
Miss Thompson. Yes. It was mostly hearsay. As I said before, I
had never been in Portland. I didn't know Portland.
Senator McCarthy. You say you did not discuss with liim what he
was to give you, or you would give him ?
Miss Thompson. First he was supposed to find a place, a hotel or
something, and then from then on we were to discuss what the deal
was. But that never came up.
Senator McCarthy. Elkins does not run a charitable organization.
Miss Thompson. That is right.
Senator McCarthy. What was he to be paid ?
Miss Thompson. That did not come out.
Senator McCarthy. You never even mentioned that he would get
any take?
Miss Thompson. No. I wasn't in business yet, so you don't talk.
Senator McCarthy. When you talked about going into business,
did you discuss what he or Maloney or anyone else might be paid ?
Miss Thompson. No, sir.
Senator McCarthy. You never mentioned that?
Miss Tho:mpson. If I got in business, that probably would have
come up.
(At this point. Senator McNamara withdrew from the hearing
room.)
Senator McCarthy. Would you tell us what the conversation was
for that hour ? I am curious to hear about that.
Miss Thompson. Well, it is going to be kind of rough, me trying to
tell you what we talked about.
Senator McCarthy. It may be rough, but we are here to hear it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 125
Miss Thompson. I am willing to tell you if I can remember. It
didn't amount to anything. In fact, he didn't tell me anything. He
was trying to tell me to go to some other town, not to land in Portland.
Senator McCarthy. In other words, Elkins told you you should
not come to Portland?
Miss Thompson. No.
Senator McCarthy. Pardon?
Miss Thompson. Yes, he did. Not in so many words, but I guess
that is what lie meant.
Senator McCarthy. I think you were asked this question before:
What made you come back to see Elkins the second time ?
Miss Thompson. Well, as I said before, the first time he sounded a
little encouraging. So I thought, "Well, I will go back and try it
again, and see." So the second time it was just no use.
Senator McCarthy. Mr. Kennedy, could I ask you this question:
I know from the previous conversation there is supposed to be a tieup
between some hoodlums who claim to be, and I emphasize the words
"claim to be," connected with the teamsters union and this alleged deal.
We know the district attorney was indicted. I wondered if you could,
just for the sake of the record, and for the press here, who are curious
to give the countr}^ a picture of this, I assume, tell us just what, if any.
connection there was between anyone that claimed to be a member of
the teamsters union ?
I am not trying to cross-examine you.
Mr. Kennedy. No, that is all right, Senator. The situation that we
are investigating is the question of two men, Joe McLaughlin and Tom
Maloney, coming down into Portland and working with the teamsters
union, allegedly in order to operate organized vice. They were work-
ing together with Mr. James Elkins. Mr. James Elkins has been a
witness here.
They were to come down and organize bootlegging, afterhours
joints, pinball machines, gambling of various sorts and punchboards.
We will have testimony on that.
One of the matters also that they were interested in, according to Mr.
Elkins, was in prostitution, in opening up houses of prostitution in the
city of Portland. He said that he had never had anything to do with
them in the past.
One of the first contacts that was made was shortly after Langley
was elected, and it was up in Seattle at a meeting between Langley,
Tom Maloney, and Jim Elkins. At that time, according to Mr. Elkins'
sworn testimony, it was suggested tliat they operate 2, 3, or 4 houses
of prostitution, and that perhaps Ann Thompson could rmi them in
the city of Portland, that she could be in charge of the whole operation.
He said he didn't want anytliing to do with that.
He went back to Portland. They kept discussing this matter, and
finally he said that Tom Maloney made a contact with Ann Thompson
and suggested that he see her. He went to the airport ancl met her. He
said he discouraged her at that time, and that they drove around in the
car. In fact, he would not even bring her into the city. He told her to
take the return plane home, which, according to Miss Thompson, she
did. They took a short ride around and she went back.
He said in the sworn testimony that he heard again from her several
weeks later, and saw her at the New Ileathman Hotel, and tliat durin<r
126 IMPROPER ACTIVITIES IN THE LABOR FIELD
this period of time, Tom Maloney and the other people kept saying
"Let's open up houses of prostitution," and that he went over to the
New Heathman Hotel and had another conversation with Ann Thomp-
son and again reached the conclusion that there was no purpose of
opening up houses of prostitution in the city of Portland. She again
went back to Seattle.
This, in my estimation, was an overt act and it is corroborated by
Ann Thompson's testimony that the initial contact was made by Tom
Maloney. We will have further testimony showing the tieup of Tom
Maloney and various teamster officials and Tom Maloney's tieup with
teamster union officials, and his own tieup with the teamster union.
Senator McCarthy. In other words, Mr. Kennedy, and see if I am
right in this, in answer to Senator McNamara's question, the reason
that this woman is here is because there is evidence, information, re-
ceived by the staff to the effect that some individuals who claim to be
connected with the teamsters union tried to get her to open houses
in Portland, and that there was to be a take by those officials of so much
a day or week from each girl employed ?
Mr. Kennedy. Senator, as far as Mr. Elkins' testimony is con-
cerned, he has not testified to that. There were to be opened 2 to 4
houses of prostitution in the city of Portland, they were supposed to
split the take, and Ann Thompson, for one, was to be the one that
would run them. As far as the take from each girl, I have no in-
formation. The only information I have is what has been testified
to here.
The fact that Mr. Maloney's tieup with the testimony will be de-
veloped if he goes on.
Senator McCarthy. May I ask this, Mr. Kennedy, to get this pic-
ture in mind : I must plead that I was maybe a bit negligent in not
being here yesterday, but I was testifying before another committee.
1 may have missed some of this.
The reason she is here is because of an alleged direct tieup with
hoodlums who claim to represent the teamsters union 'I
Mr. Kennedy. Senator McCarthy, the reason she is here is that
there was a plan, at least an initial plan, to operate houses of prosti-
tution in the city of Portland. Ann Thompson made a trip down
there for that purpose. That has been developed, and we expect to
go into gambling, to go into pinball machines, the punchboards, and
various other operations. This is one operation which is included
in the category of vice, and I think it is a very important aspect of the
case to go into. She establishes and confirms that the initial contact
made with her was b}^ Mr. Tom Maloney. She said that she does not
know what Tom Maloney said in the hotel room that got her to get in
touch with Jim Elkins and to go down there a second time.
That is up to the committee to decide, whether there was not any
further contact with her that brought her down to Portland and then
l3rought her down a second time to Portland to meet Jimmy Elkins
when he had not even taken her into the city the first time. This was
all on her part from somebody that she said she met only casually
2 or 3 years ago, namely Tom Maloney.
She does confirm, which I think is very important, that the initial
contact was made by Tom Maloney and that she made the trips down
to Portland.
IMPROPER ACTIVITIES IN THE LABOR FIELD 127
Senator JNIundt, Mr. Chairman, I think what the counsel has said
is very illuminating and certainly does corroborate the testimony of
Mr. Elkins.
Miss Thompson, I would like to ask you this: When I was first
interrogating you, you told me you lost interest in the Portland situa-
tion after your first conversation with Mr. Elkins. It was a strange
town, you did not know what the law-enforcement situation was, and
you lost interest. He did not talk you out of it but you talked your-
self out of it. Is that correct ?
Miss Thompson. That is correct.
May I tell you something that just crossed my mind ?
Senator Mundt. Yes.
Miss Thompson. He did say this, wliich I should have answered
before
Senator Mundt. This is on the first contact ?
Miss Thompson. Tlie first time. That if I operated in Portland, I
would have to give up half of everything I made.
The Chairman. Who told her that?
Senator Mundt. She said Mr. Elkins told her that in Portland,
the first time.
Miss Thompson. And besides that, to buy the places and put out
all the money. That didn't sound so good. That was one thing I
should have said before and I didn't.
Senator Mundt. That was why you lost interest?
Miss Thompson. Yes.
Senator jNIundt. You went back to Portland ?
Miss Thompson. Yes.
Senator Mundt. Think very carefully about your answer to this
(|uestion. Between the time that you arrived back in Portland and
the time you reestablished contact with Mr. Elkins, did you again
see Mr. Maloney ?
Miss Thompson. I have never seen Mr. Maloney to this day, ever.
Senator Mundt. Did you see Mr. McLaughlin ? "
Miss Thompson. I don't loiow him.
Senator Mundt. Did you talk with anybody at all about your con-
tacts with Mr. Elkins in Portland before you went back the second
time ?
Miss Thompson. I never did, until it came out now.
Senator Mundt. Wliat was the thing that revitalized your interest
in the Portland situation to the extent you went down the second
time?
Miss TnoivrpsoN. Well, I kept thinking, "Well, maybe even with
that I can make some money." I needed money. So I went back the
second time. But no one told me to go back the second time, believe
me.
Senator Mundt. In other words, by that time you were really
vitally interested in opening up in Portland to the extent that you
made a second long-distance call and paid for a second round-trip
ticket to Portland ?
Miss Thompson. That is right.
Senator Mundt. You were that much interested the second time ?
Miss Tho^ipson. Yes. I was, but then when I talked to Mr. Elkins,
that just blew up. He discouraged me.
128 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Mundt. The second time he completely discouraged you to
Ihe point where you abandoned ship ?
Miss Thompson. That is right.
Senator Mundt. Any further questions, Mr. Counsel ?
Mr. Kennedy. No.
Miss Thompson. I don't want any pictures.
Senator McCarthy. Mr. Chairman, can I ask one question ?
Can you give us some idea of what this 1 hour conversation con-
sisted of?
Miss Thompson. AVell, I truthfully can't. I wonder myself what
I am here for. I don't know Mr. Maloney. I never had anything to
do with him. I never have belonged to a syndicate of any kind. I
just don't know.
Senator McCarthy. You say you wondered yourself why you were
there ?
Miss Thompson. Wliy I am here.
Senator McCarthy. You knew you were there for the purpose of
making arrangements to open up houses, right?
Miss Tpiompson. Yes.
Senator McCarthy. You knew that Mr. Elkins or someone was
supposed to get half of the take ; is that right ?
Miss Thompson. Yes, that is right.
Senator McCarthy. Were any arrangements made to rent or buy
a house?
Miss Thompson. No.
Senator McCarthy. You went back to Seattle?
Miss Thompson. Yes.
Senator McCarthy. And tlien before you came back again, did
Maloney advise you to come back ? Did Elkins call you ? What hap-
pened?
Miss Thompson. Senator McCarthy, no one called me. T just
waited for a week or so and I decided I would call, myself. I didn't
contact anyone. That is the truth, so help me.
Senator McCarthy. I have nothing further, Mr. Chairman.
The Chairman. Let the Chair ask this question before you leave.
You said, I believe, that it was the first trip you made to Portland when
you talked to Mr. Elkins that he told you that you would have to give
up half of your earnings?
Miss Thompson. Right.
The Chairman. "\^nio was to get that half?
Miss Thompson. He didn't tell me.
The Chairman. Did he say?
Miss Thompson. He didn't say.
The Chairman. He didn't say he would get it ?
Miss Thompson. No.
The Chairman. Or who would get it?
Miss Thompson. He didn't say.
The Chairman. He told you you would have to give up half of
your earnings?
Miss Thompson. Right.
The Chairman. Do you know if he was talking that way to try to
discourage you?
Miss Thompson. That I couldn't say.
The Chairman. You do know on the second trip that he did discour-
age you ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 129
Miss Thompson. Yes, sir.
The Chairman. Very much?
Miss TH03IPS0X. Yes, sir.
Senator Mundt. Do you know Helen Hardy?
Miss Thompson. I do not. I don't even know the name.
Senator Mundt. You never heard of it?
Miss Thompson. No, sir.
Senator Mundt. You never heard of it?
Miss Thompson. No, sir.
Senator Mundt. Do you know Helen Smalley?
Miss Thompson. No, sir.
Senator Mundt. Did j^ou ever hear of the name?
Miss Thompson. No, sir.
The Chairman. Some members of the committee have raised some
questions about the Chair's rulino- awhile ago and thought it did not
go far enough. I am inclined to agree with them.
When a witness comes to the committee under subpena and testifies,
once they make the request that no pictures be taken while they are
testifying, as long as they remain in the committee room, they are
under the jurisdiction of the committee. Therefore, the admonition
to the photographers not to take a picture of the witness applies in
this committee room.
Beyond this committee room, the Chair will undertake to exercise no
jurisdiction.
Miss Thompson. Thank you.
Senator Mundt. I do not want to raise an objection, but I do want
to vote "no" because I have always held that television, photography, is
a legitimate medium of information along with the press. I see no
more reason to exclude the photographers than I would the press, so
I shall vote "no" but raise no objection.
The Chairman. All right.
Senator McCarthy. Mr. Chairman, may I say that I disagree with
mj' colleague. Senator Mundt. I believe when someone is subpenaed
to appear here, if they do not want their picture to appear in the
papers, as much as I respect the photographers and realize the job
they have to do, I think that request should be honored. I believe
that it should go beyond the committee room. Once a witness steps
outside the door, I do not believe they should be subjected to pictures,
because they are brought here by us. I, at some times, have very little
respect for witnesses, but I do think that that right should be accorded
to them. I hope the Chair disregards the advice of my good friend,
Senator JNIundt, and extends the ruling to include — I am not speaking
of this witness alone, but of every witness who does not want his or
her picture taken — the Senate Office Building. We force them to come
into the building. They are here under subpena. I believe they are
entitled to that consideration.
As I say, that certainly has nothing to do with my personal feeling
toward any witness.
Senator jVIundt. Mr. Chairman, may I say, before the Chair pro-
ceeds, that I have known the chairman a long time. I know he is a
very modest man. I hope he does not let the counsel of my friend from
Wisconsin give him illusions of grandeur that he can ban photog-
raphers all over the United States. I think there is a limit to the
130 IMPROPER ACTIVITIES IN THE LABOR FIELD
jurisdiction of the Chair. I think that limit is certainly within the
confines of the committee room.
While I vote no against barring photographers even here, I would
be sur|:)rised if the Chair undertakes to say that photographers cannot
operate in the United States an}^ place on a witness.
Senator McCarthy. I was not talking about the entire United
States. I am speaking about a reluctant witness, who is subpenaed,
who is forced to come, who, for some personal reason, does not want
his or her picture taken,
I believe, Mr. Chairman, that it is meaningless to say, "You can-
not take a picture inside the room, but you can take pictures right
outside the door." I would sincerely hope, Mr. Chairman, and I am
not going to appeal from the ruling of the Chair, that as a general
rule, where a witness says "I don't want my picture taken," that then
the photographers, and they are ingenious young men, can wait
outside the door of the Senate and take pictures. We cannot ban them
from the entire United States.
The Chairman. The Chair will make this observation. We have a
rule to govern the actions and procedures of this committee, which the
Chair undertook to follow this morning when the question was raised,
and also raised by witnesses yesterday. The Chair submitted it to the
committee. I think I did the same thing this morning. I asked if
there was any objection at the time to the Chair's ruling. There was
none.
I have gone, I think, according to my judgment, to the limit of
my authority as chairman of this committee and to the limit of the
committee's authority with respect to these proceedings. I do not feel
that I have the authority or the jurisdiction, or that this committee
has, to extend its jurisdiction beyond the confines of this room but only
to any obstruction or hindrances or disturbances within such close
proximity as would interfere with our proceedings.
Therefore, the ruling of the Chair will
Senator McCarthy. Mr. Chairman, before you rule, may I say
that forgetting about this case entirely for the time being, and I know
the Chair is going to rule and I will not appeal from the ruling, I do
hope that at a very early moment we once and for all settle this ques-
tion of just what privileges a witness has, regardless of how we feel
about the witness.
The Chairman. The Chair will be very glad to have the committee
consider any amendment, modification, or change in its present rules.
The Chair is making this rule upon the authority and provision of
existing rules. I might say the Chair has some misgivings by having
gone this far. I realize, and I have always felt, that where the press
was present, television should be present if it desires to be here. I
have always taken that position.
But the rule of the committee now provides that if a witness objects,
while they are testifying, to pictures, movies, or television, it is within
the jurisdiction of the committee to grant the request. I realize, as was
pointed out to me, that the question of just not taking the pictures
while the witness is immediately in the process of giving their testi-
mony could be substantially meaningless, if they were permitted to
take the pictures as the witness came in and before they were sworn.
I have misgivings about my ruling to that extent.
IMPROPER ACTIVITIES IN THE LABOR FIELD 131
I make that ruling as of the present, temporarily, and the committee,
of course, can overrule the Chair, or the committee can revise its rules.
That will be the ruling of the Chair for the present.
The witness is excused for the present.
Before you leave, however, check with the chief counsel of the
committee to ascertain if your further testimony will not be needed.
Miss Thompson. Thank you.
The Chaikmax. The committee will now take a recess until 2 o'clock
this afternoon.
("V^niereupon, at 12 : 05 p. m., the committee recessed, to reconvene
at 2 p. m., the same day.)
(Members present at the taking of the recess: The chairman, Sena-
tors Ives, Kennedy, McCarthy, Mundt, and Goldwater.)
AFTERNOON SESSION
(The hearing was resumed at 3 p. m., Senator John R. McClellan
(chairman) presiding.)
The Chairman. The committee will come to order.
(Present at the convening of the session were Senators McClellan,
Ervin, McNamara, jMcCarthy, Mundt, and Goldwater.)
The Chairman. Mr. Elkins, will you resume the stand, please?
Mr. Kennedy, you may proceed.
TESTIMONY OF JAMES B. ELKINS— Resumed
Mr. Kennedy. Mr. Elkins, early in January you were having meet-
ings every day attempting to get this situation set up, is that right,
or at least on the part of Mr. Maloney and Mr. McLaughlin? You
met with them.
Mr. Elkins. That is correct.
Mr. Kennedy. Now, did you ultimately have a meeting with John
Sweeney ? Did he come do\Yn to Portland ?
"VVliat was the purpose of that?
Mr. Elkins. To tell me I wasn't on the ball enough, to get busy.
The Chairman. Telling you what ?
Mr. Elkins. That I wasn't getting things on the road, the show on
the road, and that he wanted me to get busy.
Mr. Kennedy. Did he mention anything about Frank Brewster
at the time?
Mr. Elkins. He said Frank Brewster had sent Joe McLaughlin
down there to run the show and he wanted me to cooperate with Joe.
Mr. Kennedy. Did he say he wanted to get some of these things
moving?
Mr. Elkins. Yes, and I don't recollect him saying what things.
He just said he wanted to get the show on the road.
Mr. Kennedy. How long did that conversation last between you
and John Sweeney?
Mr. Elkins. Not over 20 or 30 minutes.
Mr. Kennedy. Did you start to take some action the next day?
Mr. Elkins. Well, a little bit. I had my brother come up and take
him around and look for a location, I believe.
Mr. Kennedy. Location of a place to open up ?
Mr. Elkins. To start a horse book in.
132 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. The Chair is having a little difficulty in hearmg
you. Maybe if you can pull that up to you just a little closer, it will
help.
Will you proceed?
Mr. Kennedy. There was a discussion about setting up a horse
book?
Mr. Elkins. Yes, and I believe at about that time was when I
brought a man up to talk to him about a pinball route.
Mr. Kennedy. First, what was said about the horse book? Did
you mention that there might be some problems on horse book ?
Mr. Elkins. Yes, I asked him where they were going to get the
service and they said they didn't call it service.
Mv. Kennedy. When you say "they" would you say who it was?
Mr. Elkins. Joe McLaughlin and Tom Maloney said, "We can get
it started, the horse book started." I said, "Where are you going to
get the service?" They said, "We don't call it service; we call it the
results."
Mr. Kennedy. Did you say, "Where are you going to get the
results?"
Mr. Elkins. That is correct.
Mr. Kennedy. "\Yhat did they explain about that ?
Mr. Elkins. They said that there was a teamster paper there.
Mr. Kennedy. What did they say first about newspapers?
Mr. Elkins. I beg your pardon?
Mr. Kennedy. Did they say anything about newspapers having
tickers ?
Mr. Elkins. That is correct, and they said that newspapers got the
results and some papers printed them. But that the teamsters' paper
had the same privileges as big papers did, as far as the ticker was
concerned.
Mr. Kennedy. All right.
Mr. Elkins. I asked them what they were going to do about Mox-
ness. He was a do-gooder.
Mr. Kennedy. He was the editor of the teamster paper ?
Mr. Elkins. Yes, sir.
Mr. Kennedy. His name is "Moxness" ?
Mr. Elkins. He formerly worked with the Oregonian.
Mr. Kennedy. And he was at that time editor of the newspaper
of the teamsters?
Mr. Elkins. That is correct.
Mr. Kennedy. You asked them if they were going to use the team-
ster newspaper to get the results and what they were going to do with
Moxness, the editor?
Mr. Elkins. That is correct.
Mr. Kennedy. "V^Hiat did they say?
Mr. Elkins. They said they would put him in line or they would
replace him.
Mr. Kennedy. Did you understand that at a later time he was re-
placed ?
Mr. Elkins. That is correct.
Mr. Kennedy. How much longer after this time was he replaced?
Mr. Elkins. I had a falling out about in April. The last day of
April we had a falling out and we squabbled through May and then
niPROPER ACTIVITIES IN THE LABOR FIELD 133
we kind of got together in June and so I would say they rephiced him
the middle of the year sometime.
Mr. Kennt:dy. Around May or June ?
Senator Mundt. When you say —
we had a falling out —
you mean you and the editor of the paper ?
Mr. Elkixs. No, me, Joe McLaughlin, Tom Maloney and Clyde
Crosby.
Mr. Kexxedy. And you were just trying to fix the time as to when
Moxness left.
Mr. Elkins. I think it was about September, maybe, I couldn't say
just exactly- what month it was.
Mr. Kennedy. During this period of time, were you making con-
tinuous payments to Joe McLaughlin and Tom Maloney or monthly
payments ?
Mr. Elkixs. No, that didn't start until August. We quit, or I
quit, the last day of April.
Mr. Kexxedy. Had you paid them in January and February and
March, or had you made any payments?
Mr. Eliqxs. Yes, I did.
Mr. Kexxedy. Now, this is payments to Joe McLaughlin and Tom
Maloney we are talking about.
Mr. Elkixs. That is right.
Mr. Kexxedy. That is as far as we will go. Then, you stopped for
several months and then you continued again in September.
Mr. Elkixs. That is right.
Mr. KJENNEDY. "What were these payments coming from ?
Mr. Elkixs. Well, the first payments were coming out of my
pocket, all but one. There was one coming out of a poker game that
I had 25 percent of. I split it with them.
Mr. Kexxedy. But the rest of it was coming out of your pocket?
Mr. Elkixs. That is right.
Mr. Kexxedy. Now, were they talking about the interest that John
Sweeney and Frank Brewster had in this matter ? ; . • \ '
Mr. Elkixs, They were telling me that they were very unhappy.
Mr. Kexxedy. Wliy were they unhappy?
Mr. Elkixs. Because I didn't get anything open.
Mr. Kexxedy. Did you explain to them why you were not getting
things open ?
Mr. Elkixs. I told them the city administration was stopping me.
Mr. Kexxedy. "Wliat position did they take about that ?
Mr. Elkixs, They felt I was lying about that, and I couldn't get it
open if I wanted to.
Mr. Kexxedy. \Vliat type of things did they want to get open?
Mr. Elkixs. Horse book, punch board, pinballs, houses.
Mr. Kexxedy. Was there more discussion at that time about houses
of prostitution ?
Mr. Elkixs. xV little discussion, yes, I think on 1 or 2 occasions.
Mr. Kexxedy. Did they bring anybody else down from Seattle?
Mr. Ei.kixs. Yes, they Ijrought Frank Colacurcio down.
Mr. KJEXXEDY. Did you have a meeting with Frank Colacurcio?
Mr. Elkixs. Yes, sir.
Mr. Kexxedy. Where did you have a meeting with him?
134 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. In Tom and Joe's apartment, Tom Maloney and Joe
McLaughlin's apartment in Portland Towers.
Mr. Kennedy. That was Frank Colacurcio ?
Mr. Elkins. He was a boy that had various things operating in
Seattle.
Mr. Kennedy. He was in the same kind of business as you, but more.
Mr. Elkins. That is right.
Mr. Kennedy. And he was operating in Seattle?
Mr. Elkins. And Washington, yes.
Mr. Kennedy. In the State of Washington ?
Mr. Elkins. That is right.
Mr. Kennedy. Wliat conversations and discussions did you have
with Frank Colacurcio when he came down to Portland ?
Mr. Elkins. He wanted me to arrange so that he could take over
3 or 4 houses. I told him if he wanted the houses to go buy them.
The Chairman. Wliat kind of houses ?
Mr. Elkins. Rooming houses for houses of prostitution, sir.
The Chairman. All right.
Mr. Kennedy. Wliat other conversation did you have with him
about them ?
Mr. Elkins. It wound up in a row.
Mr. Ivennedy. For what reason ?
Mr. Elkins. Well, he said he would pay for them out of the earning
of them and I said I didn't think that they would run long enough
for that.
Mr. Kennedy. Why did you say that ?
Mr. Elkins. Because I was telling him the truth. I didn't think
they would run ; I thought they would get arrested.
Mr. Kennedy. So you didn't reach any agreement with Colacurcio?
Mr. Elkins. No, I did not.
Mr. Kennedy. He went back.
Mr. Elkins. That is correct.
Mr. Kennedy. Were there discussions then with Joe McLaughlin
and Tom Maloney about setting up the rest of the gambling and
things ?
Mr. Elkins. Pardon me. Joe McLaughlin wasn't present at the
meeting, that was Tom Maloney and Frank Colacurcio.
Mr. Kennedy. Just the three of you ?
Mr. Elkins. Yes, sir.
Mr. Kennedy. Did you raise the question during these discussions
as to what you would do about the chief of police and the mayor, or
what should be done or what could be done?
Mr. Elkins. Well, I thought that they would arrest any places that
opened.
Mr. Kennedy. What answer was given to you ?
Mr. Elkins. I was told that they would have Clyde see the mayor.
Mr. Kennedy. Wlio?
Mr, Elkins. Clyde Crosby see the mayor, and have him change tlie
chief of police if he didn't play ball.
Mr. Kennedy. Do you know if he ever did see the mayor?
Mr. Elkins. I think he did, eventually.
Mr. Kennedy. About changing the chief of police ?
Mr. Elkins. That is correct. They threatened it many times,
Mr, Kennedy. "Wliat was the chief of police's name ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 135
Mr. Elkins. Jim Purcell.
Mr. Kennedy. Did you learn later that Clyde Crosby did go to the
mayor and see about getting the chief of police changed?
Mr. Elkins. That's right.
Mr. Kennedy. Did you learn, also, that the mayor was told that
the teamsters would not support him in the next election unless he got
rid of the chief of police?
Mr. Elkins. That is correct.
Mr. Kennedy. Did they, in fact, support his opponent?
Mr. Elkins. They did.
Mr. Kennedy. Now, that is moving up several months from the
time we are talking about right now.
Mr. Elkins. Yes; we are jumping up several months at a jump.
Mr. Kennedy. Now, did you say or was any mention made during
this period of time about the power of the teamsters or what John
Sweene}^ and Frank Brewster would do.
Mr. Elkins. Practically every day; yes.
Mr. Kennedy. Excuse me.
Mr. Elkins. Practically every day.
Mr. Kennedy. What kind of conversations went on, Mr. Elkins?
Mr. Elkins. Well, Tom, in particular, looked on the teamsters,
more so than Joe did, as God or something. That is, Frank Brewster
and John Sweeney.
Mr. Kennedy. Was there any discussion about what they could
accomplish?
Mr. Elkins. Yes ; they said we could eventually take over the whole
State of Oregon if we had their backing.
Mr. Kennedy. And did they say anything about if the mayor or
chief of police opposed you?
Mr. Elkins. They would change them ; that's all.
Mr. Kennedy. Who would change them?
Mr. Elkins. That the teamsters would oppose them at election times
and that they would throw the chief out.
Senator McCarthy. Were they successful in throwing the chief
out?
Mr. Elkins. No ; they were not. They were successful in throwing
the mayor out at election time only.
Senator McCarthy. Could I ask one further question? Did you
work toward the objective of throwing the mayor out also ?
Mr. Elkins. No; I did not.
Senator McCarthy. Did j^ou support the losing mayor?
Mr. Elkins. 1 didn't su])port either one of them in this election. I
was in too much trouble of my own by that time.
Senator McCarthy. How about the chief of police situation? Did
you su])])ort the man the teamsters wanted to get rid of ?
Mr. Elkins. No; they indicted him. I went to him and tried to
tell him he was going to get fired if he didn't let the teamsters open
a little bit, and he threw me out of his office, or ordered me to get out.
Senator McCarthy. What was he indicted for ?
Mr. Elkins. Malfeasance. They later dismissed it.
Mr. Kennedy. The indictment against him was dismissed?
Mr. Elkins. Yes, sir.
136 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McCarthy. Could I ask one other question? Who pre-
sented the case to the grand jury to get the indictment of the chief of
police ?
Mr. Elkins. The attorney general, I believe, or some member of his
staff.
Senator McCarthy. Was he in on any of this dealing at all as far as
you know ?
Mr. Elkins. Not that I know of . I never heard that he was.
Senator McCarthy. Could you tell us just very briefly what the
charges of malfeasance were ?
Mr. Elkins. That he had let certain places operate.
Senator McCarthy. By ''certain places," what do you mean ?
Mr. Elkins. I mean certain illegal places in the city operate.
Senator McCarthy. And he was never brought to trial ?
Mr. Elkins. He was not. I think that he showed where there was
a whole basketful of arrests on every place they mentioned.
Senator McCarthy. I didn't get that ; I am sorry.
Mr. Elkins. They arrested every place that they had mentioned and
they had been arrested.
Senator McCarthy. After he was indicted, he proceeded to clean
up the places he was accused of ?
Mr. Elkins. No ; they had been cleaned up. These places had been
arrested continuously.
Senator McCarthy. I see. What was the name of the judge who
dismissed the indictment ?
Mr. Elkins. Judge Lonegan, I believe ; the attorney general's office
recommended the dismissal, and I don't know the circumstances, but
I think it was Judge Lonegan.
The Chairman. Did I understand you to say, to get the record
clear, that after he was indicted he was able to show that he had been
making periodic arrests at these places ?
Mr. Elkins. That is correct ; also that he had written a letter to the
district attorney asking him to abate these places.
The Chairman. In other words, his record from your information
was clear on it, that he had not only made arrests, but he had urged the
district attorney to take action to close the places.
Mr. Elkins. He didn't only arrest them, sir, he moved the furniture
all out on several occasions, the ones I had anything to do with.
The Chairman. Did you have something to do with some of those
that he moved the furniture out of ?
Mr. Elkins. Yes, sir.
The Chairman. Is that the same man who threw you out of his
office?
Mr. Elkins. That is correct.
The Chairman. All right.
Senator McNamara. While you are interrupting, there was some
testimony given as to talking to some people about taking over some
houses. Were these operating houses or vacant houses that you pro-
posed to start a business in.
Mr. Elkins. You mean where the houses were vacant ?
Senator McNamara. No, I mean were they houses of prostitution ?
Mr. Elkins. Yes ; they were houses of prostitution.
Senator McNamara. Operating?
Mr. Elkins. No ; they weren't operating at the time.
IMPROPER ACTIVITIES IN THE LABOR FIELD 137
Senator McNamara. Were they just houses?
Mr. Elkixs. They had been in the habit of operating when they
could until they would get arrested, and then they would close and
then they would start again. But it was sometime in the last 10 years
they had been operating ; yes.
Senator McNamara. Within the last 10 years they had been op-
erating? ;;
Mr. Elkins. Yes ; periodically, and there is a certain district that
I would say had maybe 10 or 15 rooming houses, that periodically
are houses of prostitution.
Senator McNamara. They were proposed locations for any opera-
tion ; is that right ?
Mr. Elkins, That is right.
Senator McNamara. Thank you.
The Chairman. All right, Mr. Counsel.
Mr. Elkins. There could have been 1 or 2 of them operating, but
I don't know that they were, sir. But it was a proposed location to
open them up and operate them.
Senator McNamara. I don't know what impression the witness pro-
poses to leave with the committee. You confuse me by your last state-
ment. Are you trying to leave the impression that they were op-
erating?
Mr. Elkins. No, I just say that I couldn't answer here that they
were or not, sneaking, because I don't know. I've never been in either
one of those places.
The Chairman. Proceed.
Mr. Kennedy. Mr. Elkins, specifically, was there a suggestion made
about how to distribute and deal with punchboards ?
Mr. Elkins. Yes.
Mr. Kennedy. That was early after they arrived ?
Mr. Elkins. That was in January or February of 1955, yes.
Mr. Kennedy. Punchboards are gambling?
Mr. Elkins. That is correct.
Mr. Kennedy. And they were illegal at that time?
Mr. Elkins. They were illegal to own or operate.
Mr. Kennedy. Was there discussion about how profitable it would
be to have a punchboard operation in Portland ?
Mr. Elkins. That is correct.
Mr. Kennedy. Would you tell us a little bit about that ?
Mr. Elkins. Well, at first it was illegal to have one in your pos-
session. Mr. Crosby went to the council
Mr. Kennedy. Prior to that, did you discuss how profitable it
would be ?
Mr. Elkins. Yes, we did.
Mr. Kennedy. And the problem they would be as far as illegality ?
IVIr. Elkins. Yes, we discussed that if they couldn't have them in
their possession they couldn't very well operate them.
^Ir. Kennedy. Did you and Joe and Tom discuss all of this ?
Mr. Elkins. We did ; yes.
Mr. Kennedy. Was there discussion about trying to get them made
legal, or allow them to be in your possession ?
Mr. Elkins. That is right. There was that one line taken out of the
ordinance.
138 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Was Clyde Crosby of the teamsters supposed to go
to the city council and get that ordinance changed?
Mr. Elkins. That is correct.
Mr. Kennedy. He is the international organizer of the teamsters;
is that right?
Mr. Elkins. That is correct.
Mr. Kennedy. Did Clyde Crosby in fact go to the city council and
get that ordinance changed ?
Mr. Elkins. That is correct.
Mr. Kennedy. And the ordinance was changed ?
Mr. Elkins. It was.
Mr. Kennedy. So that the people were allowed to possess punch-
boards ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did you decide to go ahead with that idea about
punchboards ?
Mr. Elkins. No. I took a man up to
Mr. Ivennedy. First tell who you were getting in touch with in
order to set up the punchboards. You decided at least initially that
you would go into the punchboard operation ; is that correct ?
Mr. Elkins. That is correct.
Mr. Kennedy. Wliat happened ?
Mr. Elkins. My brother and a fellow by the name of Nemer.
Mr. Kennedy. That is Norman Nemer?
Mr. Elkins. That is right. Norman Nemer. He owned a novelty
company and had some punchboards, I believe, at that time.
Mr. Kennedy. Had he been ])rominent in the punchboard field ?
Mr. Elkins. And the pinball.
Mr. Kennedy. Prior to this time ?
Mr. Elkins. That is correct.
Mr. Kennedy. Prior to the time they had been made illegal ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did you approach him?
Mr. Elkins. I did.
Mr. Kennedy. And what happened?
Mr. Elkins. I took him up to the Portland Towers.
Mr. Kennedy. What was at the Portland Towers?
Mr. Elkins. Joe McLaughlin and Tom Maloney.
Mr. Kennedy. They had moved to Portland Towers from the
Multnomah Hotel, is that correct?
Mr. Elkins. That is correct.
Mr. Kennedy. You took them up to the room, after discussing this
with Joe McLaughlin and Tom Maloney, you took Norman Nemer up
to the apartment ?
Mr. Elkins. That is right, and it was suggested that he get into
the union.
Mr. Kennedy. Get into the union ?
Mr. Elkins. That is right, and put union stickers on the punch-
boards.
Mr. Kennedy. Was there a discussion about what the union could
do?
Mr. Elkins. They could
Mr. Kennedy. What was said to you at the meeting, Mr. Elkins,
and who said it to you, and who said it to Mr. Nemer ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 139
Mr. Elkins. Joe McLaughlin said that he, Joe McLaughlin, and
Tom Maloney, would get Mr. Nemer in the union, and they wouldn't
let anyone else in the same type of business in, and they would give
him stickers to put on there, and then Mr. Nemer was sent over to
Mr.
Mr. Kennedy. Wait a moment. Let us go back to the meeting.
Mr. Elkins. All right.
Mr. Kennedy. What was suggested to Mr. Nemer to be the ad-
vantage of having stickers on his punchboards ?
Mr. Elkins. So that no one else could put their punchboards in
the same location that he had them in.
Mr. Kennedy. Was there discussion at that time about going
around to the various drugstores or cigarstores that had these punch-
boards ?
Mr. Elkins. That is right.
Mr. Kennedy. And did Joe jVIcLaughlin explain to Mr. Nemer
that the}' would only allow Mr. Nemer into the union ?
Mr. Elkins. I just said that; yes, sir.
Mr. Kennedy. And that the teamsters, through their power of
not allowing deliveries to drugstores and to cigarstores, would force
these stores to take only Mr. Nemer's punchboards?
Mr. Elkins. I don't know about the drugstores, but if they threat-
ened to shut off their beer and their bread, they wouldn't have any
trouble with them.
Mr. Kennedy. Was Mr. Nemer, through this operation, to get a
control of the punchboards ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did McLaughlin also speak about Tom Maloney
going to work ?
Mr. Elkins. He suggested that he put Tom Maloney in the building
as a bookkeeper in the main office of Norman Nemer.
Mr. Kennedy. And did INIr. Nemer accept that?
Mr. Elkins. Yes. He seemed agreeable to it, at that time. But
we didn't come to an agreement then because Joe McLaughlin and
Tom Maloney said they had to check with John about the percentage.
Mr. Kennedy. The percentage of what?
Mr. Elkins. That each one would get out of the punchboards.
]Mr. Kennedy. And was that check ever made?
Mj". Elkins. It was. He said we wanted too much. We wanted
25 ]>erce]it each, and Norman Nemer.
Mr. Kennedy. You wanted 25 percent, Norman Nemer wanted 25
percent, and tlie i-est would go to Joe McLaughlin and he checked that
out with Tom Sweeney, is that correct?
Mr. Elkins. That is correct. I believe that is the right percentage.
Mr. Kennedy. Was that acceptable to Norman Nemer ?
Mr. Elkins. It was to Norman Nemer, yes.
Mr. Kennedy. What about you?
Mr. Elkins. I accepted the proposition, yes.
^Ir. Kennedy. Did Joe McLauglilin tell Norman Nemer to go down
and get into the union ?
Mr. Elkins. He did.
Mr. Kj:nnedy. Had any of these pinball operators or pmichboard
operators been in the union at that time?
89330— 57— pt 1 10
140 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. No ; just myself. Just my men.
Mr. Kennedy. Did Norman Nemer go down ?
Mr. Elkins. He did. '
Mr. Kennedy. Did he report back that he was accepted in the
union ?
Mr. Elkins. That is correct.
Mr. Kennedy. He was the first one accepted in the union?
Mr. Elkins. That is correct.
Mr. Kennedy. Did this plan ever go into operation ?
Mr. Elkins. No ; it did not.
Mr. Kennedy. Would you explain why it did not?
Mr. Elkins. Well, Norman Nemer went to a meeting of the coin
men and the board operators. They had a meeting, and were tryiiig
to get into the union. Someone asked him how he got in, and he said
Lou Dunis got him in.
Senator Mundt. Said what?
Mr. Elkins. Lou Dunis used his influence to get him in. He
thought he was being smart, but he stirred up a hornet's nest.
Mr. Kennedy. First the coin operators, that association, they had
an association of all the pinball operators ?
Mr. Elkins. That is correct.
Mr. Kennedy. And Norman Nemer having a pinball route himself
was a member of that, right?
Mr. Elkins. That is correct.
(At this point. Senator Kennedy entered the hearing room.)
Mr. IvENNEDY. At the next meeting, they asked him "How could
you get into the union when none of us could get in" ?
Mr. Elkins. That is right.
Mr. Kennedy. He at first was mad at Lou Dunis, is that correct?
Mr. Elkins. That is correct.
Mr. Kennedy. So he said "Lou Dunis got me in" ?
Mr. Elkins. That is correct.
Senator McCarthy. What is the theory of the coin operators being
in the teamsters union? How did they get their charter, and who
was responsible for it ?
Mr. Kennedy. At that time, Senator, no one was in the union except
Mr. Elkins' men, and they got in through Tom Maloney. The coin
operators were having a difficult time trying to get into the union.
This scheme was worked out with Mr. Elkins, Mr. McLaughlin, and
Mr. Nemer, chiefly, and in some part Mr. Maloney.
Senator McCarthy. How did you get a charter for the pinbaii
machines in the teamsters union?
Mr. Elkins. I didn't have a charter.
Senator McCarthy. You did not have a charter?
Mr. Elkins. No.
Senator McCarthy. I understood you to say you were in the union.
Mr. Elkins. My men were. I just sent them over there and they
joined. That is all. They just paid.
Senator McCarthy. In other words, they paid their dues, but there
was no charter from the teamsters union?
Mr. Elkins. No; there was not.
Senator Mundt. Could you give us a little better picture of what
Mr. Nemer told you ? You said he told you he went down and joined
tliPi union. Wliat do you mean by going down? AYlio did he see?
IMPROPER ACTIVITIES IN THE LABOR FIELD 141
Mr. Elkins. He went to tlie teamsters hall and seen Mr. Clyde
Crosby. Mr. Clyde Crosby called a union representative, anyway,
that he said had gone to school with Mr. Nemer. There was no prob-
lem, no discussion about wages or anything lil^e that. He just signed
him up and give him a handful of stickers. I mean by stickers, they
were little decals with the union emblem on them.
Senator Mundt. He got those from Mr. Crosby ?
Mr. ELKrws. He got them from Mr. Crosby, yes.
Senator Mundt. He got the stickers from Mr. Crosby which he
could put on the punchboards denoting them as union punchboards?
Mr. Elkins. That is correct.
Senator Mundt. When he went down and talked to Mr. Crosby, he
had no difficulty in getting into the union ? He did not have to pay
anything or anything of that kind, but he just went down and got in?
Mr. Elkins. That is con-ect.
Senator McCarthy. I do not quite follow this. One punchboard
or pinball operator was given stickers to put on his machines. He did
not belong to the union as such. You say his workmen belonged to
the union ; is that right ?
Mr. Elkins. You are talking about me now or Norman Nemer?
Senator ISIcCartht. Nemer.
Mr. Elkins. He was given stickers to put on his pinballs and his
machines, he and one employee, I believe.
Senator jMcCartiiy. Would you give us a quick picture as to how
that worked, what advantage there was to getting the stickers, and
whether the other operators could get them or not ?
Mr. Elkins. They could not get them.
Senator McCarthy. They could not get stickers, the other opera-
tors?
Mr. Elkins. No, sir, and they couldn't get into the union until
such time as we decided they were.
Senator McCarthy. In other words, you and Nemer got these
stickers, and if someone would use pinball machines that did not have
stickers on them, they would not get deliveries of beer or food or
what-have-you ?
Mr. Elkins. That is correct. Only there wasn't anything said
about Nemer's pinballs. He said he only had a few pinballs at that
time, seven or eight locations. It was primarily for the punchboards.
Senator McCarthy. Was there a payoff in connection with that?
Mr. Elkins. To the union, do you mean ?
Senator McCarthy. Pardon?
Mr. Elkins. To the union, do you mean ?
Senator McCarthy. I do not like to use the word "union." Let us
use some individuals who claimed to represent the union.
Mr. Elkins. Mr. McLaughlin or Mr. Maloney ? No, there was no
payoff. They w^ere to receive their percentage out of the earnings of
the punchboards.
Senator McCarthy. In other words, the payoff was a percentage
out of the machines ?
Mr. Elkins. Of the earnings, yes, sir.
Senator McCarthy. And what was that percentage to be?
Mr. Elkins. Well, we never did agree on it. We tentatively agreed
on 50 percent, but we were later told that John Sweeney didn't think
that Joe and Tom were getting enough, and the whole thing blew up.
142 IMPROPER ACTIVITIES IN THE LABOR FIELD
Nemer just got in the union, period. He didn't go ahead with the
punchboard idea at all.
Senator McCarthy. When you say Nemer got in the union, do you
mean that his organization was unionized?
Mr. Elkins. Yes, sir.
Senator McCarthy. And then he, of course, had stickers, also?
Mr. Elkins. Tliat is right.
Senator McCarthy. Do you know if there was any payoff there?
Mr. Elkins. Just the regular dues, I believe, sir.
Senator McCarthy. Just the regular dues ?
Mr, Elkins. As far as I know, sir.
Senator McCarthy. So far as you know, there was no percentage,
or no payoff to anyone in connection with either Nemer 's machines or
yours ?
Mr. Elkins. No, not for the machines. No.
Senator McCarthy. Just where did the payoff come? What did
these two men get out of it ?
Mr. Elkins. They didn't get anything out of it.
Senator McCarthy. As far as you know, the union got nothing
out of it ?
Mr. Elkins. That is correct, only their regular dues, and that is all.
Senator McCarthy. If I recall, did you not testify that there was
a $10,000 payoff?
Mr. Elkins. Not for those people.
Senator McCarthy. I am a bit confused on this. If there was no
payoff, I wonder where the graft was.
Mr. Kennedy. The gist of this whole thing again is that Maloney
and McLaughlin came down to Portland from Seattle, and with the
help of other union officials were going to organize the vice and the
operations in the city. They started to organize, attempted to get
into the prostitution, and they attempted also to get into punchboards,
which is part of gambling. What they were going to do is Joe
McLaughlin and Tom Maloney, making returns to John Sweeney and
Frank Brewster from Seattle, were going to organize this company
and they were going to have exclusive jurisdiction in the punchboard
field. Together with the power of the teamsters, they could go around
to cigaretores and say "You take our pimchboards, or otherwise we
will not allow any beer to be delivered or cigars to be delivered."
As Norman Nemer was going to be the only one allowed in, they
would be permitted through this company to have exclusive control
over all the punchboard operations. This is a pattern that was fol-
lowed in certain other phases.
Senator McCarthy. And Maloney and McLaughlin, as you under-
stand from your investigation, were to receive a payoff of some kind ?
Mr. Kennedy. Not a payoff. They were going to get the profits
of the company, and the profits were going to be immense. There
were discussions about them stretching out through the whole of Ore-
gon. They were going to be able, through this operation, to control
all the punchboards, first through the city of Portland and then the
State of Oregon.
Is that correct, Mr. Elkins ?
Mr. Elkins. Tliat is correct.
Mr. Kennedy. And Mr. Elkins was going to share the profits.
IMPROPER ACTIVITIES IN THE LABOR FIELD 143
Senator McCartht. So I have this clearly in mind, Maloney and
McLaughlin were organizing this company. You and they were to
share in the profits and no one else was to get a union sticker. Anyone
that had a punchboard without a sticker would not be delivered beer
or liquor or food, is that it?
Mr. Elkins. That is correct, yes, sir.
Senator McCarthy. Did you have any estimate of the amount of
take there would be ? Let us not say profit.
Mr. Elkixs. We figured it would run in Portland alone $100,000 a
year, or something like that.
Senator McCarthy. About $100,000 a year?
Mr. Elkins. Conservatively speaking.
Senator McCarthy. And this was not, as far as you knew, to go into
the coffers of the union. In other words, the working man would not
benefit by it. It was Maloney and McLaughlin who had positions in
the union that would have the take or profit, call it what you may ?
Mr. Elkins. That is correct. At no time did I think that the work-
ing man would get a nickel of it.
Senator ]McCaktiiy. See if I am correct in this : Maloney and Mc-
Laughlin, however, would either throw a picket line up or have the
trucks refuse to deliver material to any place that did not have a
sticker, a union sticker, on the machines?
Mr. Elkins. That is correct, yes, sir.
Senator McCarthy. Thank you very much.
Senator Goldwater. Mr. Chairman?
The Chairman. Senator Goldwater.
Senator Goldwater. I would like to ask Mr. Elkins one or two
questions.
Mr. Elkins, it was your idea in operating these pinballs that nobody
would be allowed in the field without a union sticker?
Mr. Elkins. No, it wasn't my idea on that.
Senator Goldwater. Not your idea, but it was the general idea ?
Mr. Elkins. That was the general idea, sir.
Senator Goldwater. How much was going to be charged for that
union sticker?
Mr. Elkins. Do you mean by the union ?
Senator Goldwater. By the union.
Mr. Elkins. Well, there was no discussion on that. We just paid
for the men that we employed to get in the union, and we would say
how many stickers we wanted. We think — I had 37 pinball locations
and they would give me whatever stickers I would ask for. I would
just put them on my pinballs.
Senator Goldwater. A new man, Mr. Smith, let us say, if he came
to town and wanted to get in on the deal, could not get union stickers
at any price?
Mr. Elkins. Not at any price, until we got the locations we wanted.
Eventually it could come to that, but we had not quite covered that
phase of it on the pinballs yet.
Senator Goldwater. But Mr. Smith could not, for $10,000 or
$15,000, or any amount, buy a membership in that union?
Mr. Elkins. Well, for that figure I think he could have, yes, sir.
Senator Goldwater. Wliat I am trying to get at is was there any
price set for this membership?
144 EMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. No. They just wasn't supposed to get in, period. Mr.
Maloney said he would crawl to Seattle on his knees if anyone could
get in there.
Senator Goldwatek. So it was, in eif ect, a closed shop ?
Mr. Elkins. That is correct, yes.
Senator Goldwater. Mr. Elkins, do you know what the change
was that was effected in the city ordinance?
Mr. Elkins. Yes. They just took one line out. I don't know where
it was. It was
illegal to possess a punchboard,
and they took that line out. I believe the reason they give was that
they didn't want the teamsters violating the law in transporting them,
picking them up in transit.
Senator Goldwater. I have one more question.
Did the teamsters own any of these punchboards ?
Mr. Elkins. No, sir.
Senator Goldwater. They did not?
Mr. Elkins. They did not.
Senator Goldwater. That is all I have.
Thank you.
The Chairman. Mr. Elkins, you have testified about a man named
Nemer, Norman Nemer.
Mr. Elkins. Yes, sir.
The Chairman. When was the last time you saw him?
Mr. Elkins. It has been about a. year, I imagine. I have seen him
on the street was all.
The Chairman. Wlien was the last time you talked to him? How
long ago?
Mr. Elkins. I believe it was in April or May.
The Chairman. Last year?
Mr. Elkins. Of 1955, yes, sir.
The Chairman. Of 1955?
Mr. Elkins. No, 1956.
The Chairman. 1956?
Mr. Elkins. Yes.
The Chairman. Have you had any conversations with him, either
by telephone or any communications to or from him in any way since
this committee became interested, or since this or the other committee
became interested in this matter?
Mr. Elkins. No, sir. He don't like me right now.
The Chairman. He does not like you right now.
The Chair would like to read an affidavit into the record at this
point. The witness maj'^ remain in the chair.
Room 510. United States Courthouse,
Portland, Oreg., February 13, 1957.
State op Oregon,
County of Multnomah:
I, Norman B. Nemer, residing at 1054 Southwest Douglas Place, Portland,
Oreg., with a place of business at 814 Southwest First Avenue, Portland, Oreg.,
make the following statement of my own free will without any promise of favor
or immunity, in the presence of Jerome Adlerman and Alphonse Calabrese,
assistant counsel to the United States Senate select committee which is known
to me to be investigating improper activities in labor or management fields.
Several months prior to February 15. 1955, I had conversation with Mr. James
B. Elkins at the suggestion of Mr. Leo Plotkin.
IMPROPER ACTIVITIES IN THE LABOR FIELD 145
Will you tell us who Leo Plotkin was ?
Mr. Elkins. He was just a man out of work.
The Chairman . Was he running a bootlegging joint at the time?
Mr. Elkins. He was em]jloyed in one, yes.
The Chairman. I will continue reading :
I was given to understand by them that there was a possibility that punch-
boards might be licensed and legalized in the city of Portland. Our discussions
contemplated that if punchboard operations could be licensed a company would
be formed consisting of Jim and Fred Elkins and Ray Fessler and myself as
partners.
Who is Ray Fessler ?
Mr. Elkin-s. Well, he is a man that owns a bar in Nevada at the
present time. At that time he lived in Palm Springs.
The Chairman. I will continue reading :
Some time elapsed without anything happening.
A few weeks before February 15, 1955, Mr. Jim Elkins called me and said that
the punchboard operations had taken on new life and that new contacts had been
established.
About the first week in February 1955 I went up to the Portland Towers and
was introduced to Joseph Patrick McLaughlin and I believe also to Thomas
Maloney. Such introductions definitely established to me that both McLaughlin
and Maloney were connected with the teamsters and during the course of our con-
versations that afternoon McLaughlin mentioned his teamster connections and
particularly mentioned the names of Brewster, Sweeney, and Crosby. The con-
versations revolved around the fact that McLaughlin, Maloney, and the two
Elkins brothers wanted a company formed to operate punchboards, if and when
they were made legal, and they asked me if I was willing to manage it. In our
conversations it was clear to me that the union side of this thing was that they
were to have the lion's share. It was also made clear to me that McL^^ughlin and
Maloney represented the heads of the teamsters union. It was further clear to
me that McLaughlin and Maloney, through their teamster union connections, were
to obtain the legislation of the punchboards and Mr. James Elkins also was to
use whatever connections he had to likewise attempt to obtain legalization of
the punchboards.
The discussions also indicated that the operation was to be financed by James
Elkins and McLaughlin and that my share would be a minor portion of the
operation.
The discussions also covered, not only the licensing of the punchboards, but
also getting accounts and locations and possible competition. I was told that
this operation would be a partnership ; that it would have to be a union opera-
tion, and that it was be necessary for me to become a union member. They
also discussed the fact that the union could take in or leave out anyone that
it wished and thereby assuring themselves of a complete monopoly in the punch-
board field.
The next thing I knew I got a telephone call from a man whom I believe
to be from the teamsters' union and I was told to come down to see Mr. Crosby.
Mr. Crosby asked me a few academic questions, such as why I wanted to join
the union and then he turned me over to Mr. Hildreth or a clerk and I was
signed up on February 15. 1955. I fix this date by the fact that I drew a check
on that date. No. 5647. in the sum of $52 to cover the initiation fees for myself
and 1 employee, Mr. Joel Dake. I recall that while I was talking to either
Mr. Hildreth or one of the union clerks, he told me that Mr. Dake would also
have to join and get him down right away. I called him and he came down
and he was made a union member the same day.
There was a second meeting in the Portland Towers some time after I joined
the union. At this meeting, which was a very short meeting, Jim and Fred
Elkins, Joseph McLaughlin, and Thomas Maloney and I were again present.
At this meeting there was a discussion al)out the trouble that Terry and Dunis
had because they could not get into the union and IMcLaughlin and Elkins were
laughing about this problem. At this meeting I also recall that McLaughlin
asked me if it would be all right, if and when we started operations, whether
Maloney could be on the payroll as a bookkeeper or in some other such capacity.
146 IMPROPER ACTIVITIES IN THE LABOR FIELD
This meeting ended with the understanding that any future business to be taken
up would be held at another subsequent meeting. There were no further meet-
ings which I attended.
This statement consisting of four pages, which has been read by me, is true
and correct to the best of my knowledge.
(Signed) Norman B. Nemeb.
Signed in the presence of
Alphonse F. Calabrese, February 13, 1957 (Signed)
Jerome S. Alderman, February 13, 1957.
Sworn to and subscribed before me on the 13th day of February 1957.
(Signed) Louis Schultze,
notary Public for Oregon.
My commission expires August 1, 1958.
The whole thing may be printed in the record at this point.
(At this point, Senator McCarthy withdrew from the hearmg
room.)
The Chairjuan. Do you have any comment to make on tlie affidavit,
Mr.Elkins?
Is there any point about his testimony that is incorrect, so far as you
know?
Mr. Elkins. I beg your pardon ?
The Chairman. You heard me read the affidavit of Mr. Nemer. I
am asking you if there is any statement in there that is incorrect so far
as you know.
Mr. Elkins. Well, it follows along pretty much in line. I don't
remember that there was too much question raised about whether it
was legal or illegal. It was just where we could get the city to go
along and let us operate them, which we couldn't, so we didn't operate.
The Chairman. That was the question. They wanted to be sure
that you. were going to be able to operate.
Mr. Elkins. That is right, where we could fix it or legalize them,
whatever way we could do it.
The Chairman. All right.
Are there any further questions. Counsel ?
Mr. Kennedy. This is separate and apart from the pinball opera-
tion?
Mr. Elkins. That is correct.
Mr. Kennedy. This is just the the punchboards?
Mr. Elkins. That is correct.
Mr. Kennedy, And it happened to be that Mr. Norman Nemer also
had some pinballs ?
Mr, Elkins. That is correct.
Mr, Kennedy, But the operations we are talking about now are the
punchboard operations ?
Mr. Elkins. That is correct,
Mr. Kennedy. We have not gotten into the pinballs.
Mr, Elkins. That is correct.
Senator McNamara. Mr. Chairman, apparently we are about to
leave the punchboard section. Is that a correct assumption ?
Mr. Kennedy. Yes, sir.
Senator McNamara. I would like to ask a couple of questions about
the punchboard operations.
The sworn statement just put into the record by the chairman indi-
cated that you also cooperated in getting the ordinance changed in the
city ; is that correct ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 147
Mr. Elkins. I didn't have no way of cooperating. I will tell you
how I cooperated. I went to a friend and had a candy manufacturer
write a letter to Mr. Crosby, asking him to go — well, giving him some-
thing to hang his hat on when he got in front of the council.
Senator McNa]viaR:V. That could be constructed by the man who
made the sworn statement as cooj^eration, I suppose.
Mr. Elkins. That is right. I think he got 1 or 2 candy manu-
facturers, and I think I got 1.
Senator McNamara. Then what the teamsters are guilty of here,
as you have indicated, is trying to control the distribution of a legal-
ized operation ? The punchboard now become legalized by the change ?
Mr. Elkins. No ; they didn't become legalized. It was legal to have
one in your possession, but still illegal to operate it, sir. You were
still gambling.
The Chairmax. Let us see if we can clear that up.
Senator McNamara. I think that is quite confusing.
The Chairman. The ordinance at the time provided that it was not
only illegal to operate them but also illegal to have them in your
possession ?
Mr. Elkins. That is correct, sir.
The Chairman. So the revision of the ordinance or the amend-
ment that was adopted by the council simply removed the illegality
of possession ?
Mr. Elkins. That is correct, sir.
The Chairman. Is that what you are saying?
Mr. Elkins. That is right, sir.
The Chairman. And then as to operating them, you proposed, if
you could not get them legalized, to operate, and you thought you
could not, I assmne, you proposed to make arrangements about operat-
ing them anyway ?
Mr. Elkins. We tried to make arrangement, sir. We didn't make
the arrangements.
The Chairman. You did try to make the arrangement and you did
not succeed ?
Mr. Elkins. That is correct.
The Chairman. I would like to ask if Mr. Crosby was a member
of the city council at that time.
Mr. Elkins. No ; he has never been a member of it.
The Chairman. He was a member of some commission ?
Mr. Elkins. Of the recreation center.
The Chairman. The building, that is correct. I was confused.
Senator McNamara. Mr. Chairman, may I continue?
The Chairman. Certainly. I did not mean to interrupt yoiL
Senator McNamara. That is quite all right. I think you clarified
the point that I raised.
On the list that I have before me, which is a list prepared by the
staflP, I take it, Mr. Joseph Patrick McLaughlin and Mr. Thomas
Emmett Maloney are listed as Seattle gamblers. You say in your testi-
mony that they indicate that they had connections with the teamsters
union. Did you intend to imply that they were not agents of the
teamsters, or that they were agents of the teamsters? What is your
estimation of that situation?
Mr. Elkins. Well, it didn't make much difference to me, because
Mr. Sweeney had told me that he wanted me to work with them.
148 IMPROPER ACTIVITIES IX THE LABOR FIELD
Senator McNamara. Of course, Mr. Sweeney is dead.
Mr. Elkins. That is right.
Senator McNamara. I think it is important that the committee
know, if your testimony is going to be of any value, that these people
were or were not agents of the Teamsters. I think that is the crux
of our investigation at this phase.
Mr. Elkins. Well, of course, from the telephone calls they made in
my presence, and the times they talked to different people, there was
no doubt in my mind that they were agents of ]Mr. Brewster and Mr.
Sweeney.
The CHAiRMAisr. Did they talk to Mr. Brewster by telephone in your
presence ?
Mr. Elkins. Many times ; yes.
The Chairman. About these operations, various aspects of them ?
Mr. Elkins. Well, just telling them things were not going very
good, or it looked like they were looking up, and talking to them
about Seattle or talking to them about San Francisco. I don't re-
collect just what they talked to them about, sir.
The Chairman. Senator Goldwater?
Senator Goldwater. Mr. Elkins, do you know where this equip-
ment was stored in Portland ?
Mr. Elkins. Which equipment was that, sir?
Senator Goldwater. Your punchboards?
Mr. Elkins. In Norman Nemer's warehouse.
Senator Goldwater. Pardon ?
Mr. Elkins. In Norman Nemer's warehouse. He had quite a bit of
equipment on hand, sir.
Mr. Kennedy. Mr. Elkins, in their conversations with you, did they
describe themselves as being associated with the teamsters ?
Mr. Elkins. That is correct ; yes.
Mr. Kennedy. And their close connection with the teamsters' union,
was that the source of their power ?
Mr. Elkins. That is right.
(At this point, the chairman withdrew from the hearing room.)
Mr. Kennedy. "Wliat did they say to you about it ?
Mr. Elkins. That they were connected w^ith the teamsters, that
McLaughlin had many odd jobs, and that Mr. Maloney had been work-
ing closely with Mr. Brewster for 20 years.
Mr. Kennedy. Were you aware also that when Mr. Maloney first
came down to Portland and registered at the Multnomah Hotel, he
registered as an organizer for the teamsters ?
Mr. Elkins. I was told that. I didn't look at the registration, but
I was told that, sir.
(Members present at this point: Senatoi*s Kennedy, McNamara,
Mundt, and Goldwater.)
Mr. Kennedy. Mr. Chairman, the records will show that.
Senator Kennedy (presiding). Senator McNamara?
Senator McNamara. Do I understand that the statement was that
the hotel registration showed that the man in question was a member
of the teamsters' union? That is a very unusual procedure, to so
register in a hotel.
Mr. Kennedy. Senator McNamara, we can put some of those records
in the record at this time, if you like. We have the registration cards.
IMPROPER ACTIVITIES IN THE LABOR FIELD 149
Senator McNamaea. I think it would be well to do that, if you have
such records.
Senator Kennedy. Without objection, that may be done.
Mr. Kennedy. I would like to call Mr. Calabrese, the committee
staff investigator, Mr. Chairman, as a witness.
(Members present at this point: Senators Kennedy, McNamara,
Mundt, and Goldwater.)
Senator Kennedy. Do you 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. Calabrese. I do.
TESTIMONY OF ALPHONSE F. CALABRESE
Mr. Kennedy. Mr. Calabrese, will you identify yourself?
Mr. Calabrese. My name is Alphonse Calabrese. I am a resident
of College Park, Md., and I am a staff investigator with this
committee.
Mr. Kennedy. You have been an investigator with us for how long ?
Mr. Calabrese. For 2 years.
Mr. Kennedy. What was your assigimient prior to that time?
Mr. Calabrese. Prior to that time I was employed with the Foreign
Operations and, prior to that, 13 years experience with the FBI as a
^:pecial agent.
Mr. Kennedy. You were in the FBI for 13 years?
Mr. Calabrese. That is correct.
Mr. Kennedy. You have some records there that we have received
from various sources regarding Mr. Tom Maloney and Mr. Joseph
McLaughlin ?
(At this point the chairman entered the hearing room.)
Mr. Calabrese. That is correct.
Mr. Kennedy. Let us start on Tom Maloney. Do you have the
telephone records of Mr. Maloney's residence at 3711 East Second
Street, Spokane, Wash. ?
Mr. Calabrese. I have. I do.
Mr. Kennedy. Do you have an application there for the service
that contains the information that Maloney was a partner of the
Maloney Sports Center?
Mr. Calabrese. That is correct.
Mr. Kennedy. Was that information crossed out in the appropri-
ate places and the employer's name and occupation shown?
Mr. Calabrese. Teamsters' union organizer.
Mr. Kennedy. What year was that?
Mr. Calabrese. The notation was made in July of 1949.
Mr. Kennedy. So that when he applied for the loan that we dis-
cussed yesterday from the teamster local in Spokane, he was then
identifying himself as working for the teamsters; is that correct?
Mr. Calabrese, Yes ; in 1949 he was.
Mr. Kennedy. That is Mr. Tom Maloney ?
Mr. Calabrese. That is correct.
Mr. Kennedy. Do you also have
The Chairman. This document will be made exhibit No. 18.
Mr. Calabrese. This is a photostat of the original service record.
150 IMPROPER ACTIVITIES IN THE LABOR FIELD
(The document referred to was marked "Exhibit No. 18" for refer-
ence and will be found in the appendix on p. 371.)
Mr. KJENNEDY. Do you have a car registration of Mr. Tom Maloney ?
Mr. Calabrese. I have a letter from the bureau of motor vehicles
in the State of Oregon.
The Chairman. You may read that letter into the record.
Mr. Calabrese. I might say that on January 11, 1957, I wrote to
the bureau of motor vehicles in Salem, Oreg., asking for a search of
their records of Thomas C. Maloney, who resided in 1955 at the Port-
land Towers in Portland, Oreg. I received a letter dated January 14,
1957. It is not signed. It contains the notation "Director, Depart-
ment of Motor Vehicles of Oregon," and indicates that Tom Maloney,
A. F. of L. Teamsters Building, Northeast Third and Holiday Streets,
Portland, Oreg., made application for the registration of a car, of a
1950 Chevrolet coupe, license 1G2373. The title to this registration
was issued on August 1, 1955.
The Chairman. Titled to whom ?
Mr. Calabrese. To Tom Maloney, who was the applicant.
The Chairman. I believe you said that letter was not signed.
Mr. Calabrese. It came through the mail as unsigned.
The Chairman. The Chair would direct you, as a member of this
staff, to check with the author of that letter, whoever wrote it, and
let us find out more about it.
Mr. Calabrese. I might say the postmark was from Salem, Oreg.
Mr. Kennedy. Does it have any seal on it or anything?
Mr. Calabrese. No, it is in blank. It came in that way.
Mr. Kennedy. What about at the top ?
Mr. Calabrese. The letterhead indicates
State of Oregon, Department of Motor Vehicles. Salem. Oreg.
Mr. Kennedy. And then says that Thomas Maloney at the teamster
address applied
Mr. Calabrese. I will read that portion, if you wish.
The Chairman. Let the Chair ask about this first. I do not want
to take a lot in this record that is not competent proof. Probably there
is no doubt about the authenticity of it, but if the letter is not signed,
I want to pursue the matter further.
As I understand it, you wrote a letter to whom ?
Mr. Calabrese. To the Bureau of Motor Vehicles in Salem, and
they replied stating
In compliance with yo\i request of January 11, this office is pleased to for-
ward the following information, which we trust will meet your requirements.
and then the information as I summarized it is set forth.
The Chairman. But the information is not signed by anyone?
Mr. Calabrese. It is not signed by the director, that is correct.
There is no signature.
The Chairman. Does it have a printed name on it?
Mr. Calabrese. There is none. It is just "Director, Department of
Motor Vehicles of Oregon."
The Chairman. I wish you would pursue that matter further. We
withhold the document from the record for the present. I would
like to get it authenticated.
Mr. Calabrese. Very well.
IMPROPER ACTIVITIES EST THE LABOR FIELD 151
Mr. Kennedy. Do you have a Polk's Spokane City Directory for
1956?
Mr. Calabrese. Yes. I have page 524 of the 1956 Polk's Spokane
City Directory.
Mr. Kennedy. Is there a JSIr. Thomas Maloney listed there?
Mr. Calabrese. "Thomas B. (Iva B.), organizer, Teamsters Union,
H," meaning home, "3711 Second Avenue," This is in 1956.
The Chairman. Do you identify that? Do you know that to be
his address ?
Mr. Calabrese. That is his address.
The Chairman. And he is registered in the city directory ?
Mr. Calabrese. In the city of Spokane.
The Chairman. And as an organizer of the teamsters miion?
Mr. Calabrese. As an organizer of the teamsters union, that is
correct.
The Chairman. That will be admitted.
(The document referred to was marked exhibit No. 19 for refer-
ence and will be f omid in the appendix on p. 372. )
Mr. Kennedy. Do you have a record for the Olympic Hotel in San
Francisco, November 5 to November 9, of 1951, which is part of the
pertinent period of time that we are interested in here ?
Mr. Cal^vbrese. I do.
Mr. Kennedy. Do you have a registration there?
Mr. Cal/^brese. I do.
The Chairman. Is that a photostatic copy ?
Mr. Calabrese. Photostatic copies.
The Chairman. Of what ?
Mr. Calabrese. I have before me a photostatic copy of a bill made by
the Olympic Hotel, 230 Eddy Street, San Francisco, for Tom Maloney,
room 908, dated November 12, 1954, for a room from November 5 to
November 9 at a cost of $20, plus $1.20 telephone calls, or a total of
$21.20. This was filed in the files of the Western Conference of
Teamsters.
The Chairman. "WHio paid it ?
Mr. Calabrese. I have here a check found in the files of the Western
Conference of Teamsters in Seattle, dated November 15, 1954, No.
7843, payable to the order of the Olympic Hotel, San Francisco, for the
amount of $21.20, signed by F. W. Brewster and John J. Sweeney.
The Chairman. Those documents, the two together, since they rep-
resent the same thing, may be made exhibit No. 19.
Mr. Calabrese. I also have the registration for this room signed
by Tom Maloney, Spokane, Wash., on November 5.
Tlie Chairman. How did he sign his name?
Mr. Cai^vbrese. Tom Maloney, Spokane, Wash.
The Chairman. The three documents that vou have may be made
exhibit 19-A, 19-B, and 19-C.
Mrs. Watt. Did you want the city directory as an exhibit?
The Chairman. Make the sheet from the directory exhibit 19, and
make the three I have just referred to as exhibits 20-A, 20-B and 20-C.
(The documents referred to were marked "Exhibits 20-A, 20-B and
20-C" for reference, and will be found in the appendix on pp. 373-
375.)
M^r. Kennedy. Do you have a registration from the Roosevelt Hotel
in Portland, Oreg., for November 23 through November 26, 1954?
Mr. Calabrese. I do.
152 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. What address does that give for Mr. Thomas
Maloney ?
Mr. Calabrese. 552 Denny Way, Seattle, Wash. That is the address
of the Western C^onference of Teamsters.
The Chairman. What is that document, a photostatic copy of the
hotel registration ?
Mr. Calabrese. Yes. This is a photostatic copy of the hotel regis-
tration, Roosevelt Hotel, for Tom Maloney, showing his entrance date
on November 23, 1954, and his departure date as November 26, 1954.
The Chairman, That may be made exhibit No. 21.
(The document referred to was marked "Exhibit No. 21" for ref-
erence, and will be found in the appendix on p. 376.)
Mr. Kennei>y. Do you have a record for the Hotel Olympic in
Seattle, Wash., November 26 through November 30, 1954?
Mr. Calabrese. I do.
Mr. Kennedy. In the amount of $35.86 ?
Mr. Calabrese. That is correct.
Mr. Kennedy. Who was that charged to? Who does it state the
bill has been charged to ?
Mr. Calabrese. The bill has a notation on the lower lefthand corner
of the folio here :
Send account to Western Conference of Teamsters, 552 Denny Way, Seattle,
attention John Sweeney —
and the telephone number is SEN 7370.
The Chairman. Is that a photostatic copy of the hotel record ?
j\Ir. Calabrese. That is correct.
The Chairman. Showing who registered there?
Mr. Calabrese. Showing Thomas Maloney. The address shown on
here is 2704 St. English Lane. Apparently this number is identical
with, I believe, the number of William Langley in Portland, Oreg.,
that is, the street address.
Mr. Kennedy. The street address is the same as William Langley's
street address?
Mr. Calabrese. Yes; that is correct.
Mr. Kennedy. At that time the bill was paid for by the teamsters?
Mr. Calabrese. Billed to the Western Conference of Teamsters,
attention John Sweeney.
The Chairman. Do you have the check for paying it?
Mr. Calabrese. We did not locate this check. We just have the
bill to the Western Conference of Teamsters.
The Chairman. In other words, that shows the bill was sent, it
would indicate the bill was sent, as directed by the guest who regis-
tered in that name ?
Mr. Calabrese. That is correct ; yes.
Accompanying this is the registration card signed Thomas Maloney,
the English Lane address, Seattle, Wash.
The Chairman. That may be made exhibit No. 22.
(The documents referred to were marked "Exhibits Nos. 22-A and
22-B" for reference and will be found in the appendix on pp. 377, 378.)
Mr. Kennedy. Do you have a bill from the Hotel Multnomah in
Portland, December 6 through December 11, 1954?
Mr. Calabrese. I do.
Mr. Kennedy. That is for the amount of $36.41 ?
IMPROPER ACTWITIES IN THE LABOR FIELD 153
Mr. Calabrese. Yes.
Mr. Kennedy. "V\nio is that chargred to ?
Mr. Calabrese. J. J. Sweeney, 552 Denny Way, Seattle.
Mr. Kennedy. That is Mr. John J. Sweeney ?
Mr. Calabrese. I assume so ; yes.
Mr. Kennedy. That is the address of the teamsters, is that right?
Mr. Calabrese. That is correct.
Mr, Kennedy. And that is in Seattle, Wash. ?
Mr. Calabrese. Yes.
Mr. Kennedy. Did Mr. Sweeney stay at that hotel the same period
of time?
Mr. Calabrese. Yes. I have a registration for John J. Sweeney,
showing a stay from December 7 through December 8, 1954, and a
bill of $53.45 being due and this is also charged to the Western Con-
ference of Teamsters.
I have accompanying that this check which was found in the files
of the Western Conference of Teamsters, dated January 18, No. 8081,
payable to the Multnomah Hotel, a sum of $89.86, signed by F. W.
Brewster, president, and John J, Sweeney, secretary-treasurer.
I believe the $53.45 of Mr. Sweeney and the $36.41 totals $89.86.
The Chairman. Those may be made exhibits Nos. 23, numbering
them 23-A, 23-B, and 23-C, as presented.
(The documents referred to were marked "Exhibits Nos. 23-A,
23-B, and 23-C" for reference and will be found in the appendix
on pp. 379-387.)
Mr. Kennedy. Do you have a bill of the Hotel Olympic, of Seattle,
Wash., from December 11 to December 13, 1954, in the amount of
$27.40?
Mr. Calabrese. I do.
Mr. Kennedy. Charged to whom ?
Mr. Calabrese. John J. Sweeney, teamsters, 552 Denny Way.
The Chairman. You have the hotel registration ?
Mr. Calabrese. I have a copy of the hotel bill and a copy of the
hotel registration. I have a copy of the bill forwarded to the Western
Conference of Teamsters, which we found in their files, that $27.40
was payable to the Olympic Hotel.
The Chairman. They may be made exhibits Nos. 24— A and 24^B
as necessary to identify them.
(The documents referred to were marked "Exhibits Nos. 24-A and
24r-B" for i-eference and will be found in the appendix on pp. 388-391.)
]\Ir. Kennedy. Did Mr. Maloney put any notation on that bill
you just read?
Mr. Calabrese. He signs 3711 East Second, Spokane, Wash.
The Chairman. Is that where he lived ?
Mr. Calabrese. That is his home ; yes, sir. ^
Mr. Kennedy. And is there a bill for the Hotel Olympic from
January 3 to January 6, 1955, in the amount of $44.17, charged to
John Sweeney, teamsters, 552 Denny Way ?
Mr. Calabrese. I am sorry?
Mr. Kennedy. Is there a bill for the Hotel Olympic in Seattle from
January 3 to January 6, 1955, in the amount of $44.17, charged to
.•olm Sweeney, teamsters?
Mr. Calabrese. Correct.
Mr. Kennedy. And that is 552 Denny Way ?
154 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Calabrese. Right. Accompanying this bill is, again, the hotel
registration made at the Olympic Hotel, Seattle, showing his address
as 3711 East Second, Spokane, Wash.
The Chairman. That may be made exhibit No. 25.
(The documents referred to were marked "Exhibits Nos. 25-A and
25-B" for reference and will be foimd in the appendix on pp. 392-395.)
Mr. Kennedy. Do you have a bill for the Hotel Multnomali, Port-
land, Oreg., January 6 to February 2, 1955, in the amount of $241.50,
registered as the Joint Council of Teamsters ?
Mr. Calabrese. Yes; I do.
Mr. Kennedy. Do you also have documentation there showing that
the entire bill went to the Joint Council of Teamsters ?
Mr. Calabrese. Yes.
The Chairman. Who paid the bill ? What does it show as to who
paid the bill ?
Mr. Calabrese. There is the registration of Thomas Maloney,
signed city of Seattle, State of Washington, firm: Joint Council of
Teamsters. That Joint Council of Teamsters is located, apparently,
in Portland, Joint Council No. 37.
(At this point Senator Mundt withdrew from the hearing room.)
Mr. Calabrese. The records indicate that a check dated February
23, 1955, was made out by the Joint Council of Teamsters, No. 37,
Portland, Oreg., payable to the Hotel Multnomah for the sum of
$241.50.
It is signed the "President of the Joint Council, Management,
Steele, and the Secretary, R. R. ]\Iicksel," $241.50 being the exact
amount of the billing that Mr. Maloney ran up.
The Chairman. That may be made exhibit No. 26-A, B, C, and as
necessary.
(The documents referred to were marked "Exhibits Nos. 26-A,
26-B, 26-C, and 26-D" for reference, and will be found in the
appendix on pp. 396-414.)
Mr. Kennedy. That is while Mr. Maloney was at the Hotel Mult-
nomah and, according to Mr. Elkins, having conferences with him
about setting up vices in the city ?
Mr. Calabrese. It was during that period.
Mr. Kennedy. And that bill, according to the records we have, was
paid by the Joint Council of Teamsters ?
Mr. Calabrese. That is correct.
Mr. Kennedy. Do you have a bill at the Olympic Hotel on Janu-
ary 17 and 18, 1955?
Mr. Calabrese. I do.
Mr. Kennedy. That is with Mr. Tom Maloney ?
Mr. Calabrese. That is correct.
Mr. Kennedy. Wliat firm is listed there as employer ?
Mr. Calabrese. His firm is listed as teamsters.
The Chairman. That may be made exhibit No. 27.
(The document referred to was marked "Exhibit No. 27" for refer-
ence, and will be found in the appendix on pp. 416-417.)
Mr. Kennedy. Do you have a bill from the Olympic Hotel in
Seattle, dated February 22 to February 24, 1955 ?
Mr. Calabrese. I do.
Mr. Kennedy. Did Mr. Maloney at that time register as being with
the teamsters ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 155
Mr. C\\LABRESE. The reg:istration card on this, Mr. Kennedy, is miss-
in<r, but the folio indicates the notation "'Teamsters."'
Mr. Kennedy. Excuse me^
Mr. Calabrese. The folio indicates, the bill indicates, "Teamsters"
inider Maloney's name.
Mr. Kennedy. Was the bill charged to the Western Conference of
Teamsters?
Mr. Calabrese. It Avas. A check was issued on March 11, 1955,
No. 8*271, by the Western Conference of Teamsters, in the amount of
$301.20. The $17.32 makes part of this $301.20, which the Western
Conference of Teamsters paid to Olympic Hotel.
The Chairman. That may be made exhibit No, 28, with A, B, and
C identification as necessary.
(The documents referred to were marked "Exhibits Nos. 28-A,
28-B, 28-C, and 28-D," for reference, and will be found in the appen-
dix on pi). 118-423.)
Mr. Kennedy. Do you have a bill from the Olympic Hotel for April
13-16, 1955, which is, again, a. pertinent period of time in which we
are interested, in the amount of $29.13 ?
Mr. Cmabtjese. f do.
Mr. Kennedy. Was that bill charged to the Westeni Conference of
Teamsters ?
Mr. Calabrese. That is correct.
The Chairman. That may be made exhibit No. 29.
(The document referred to marked "Exhibit No. 29" for reference
and will be found in the appendix on pp. 424—425.)
Mr. Kennedy. Do you have the Portland Towers registration?
Mr, Calabrese. I do.
Mr. Kennedy. And indicating that Tom Maloney and Joe Mc-
Laughlin resided there from February 1 to June 30, 1955?
Mr, Calabrese, That is correct.
Mr. Kennedy. And tliey give as their refpience Mr. Clyde Crosby?
Mr. Calabrese. On the registration card the reference is Clyde
Crosby and Phil Brady. However, I might add that this is hand-
writing, Mr. McLaughlin's name is typed, typewritten below Mr.
Maloney's name. The best information I could get from the people
that I spoke to at the Portland Towers was that Mr. Maloney had
executed this registration ca.rd and then inserted the typewritten name,
or caused to be inserted, J. P. McLaughlin,
The Chairman. That may be made exhibit No. 30,
(The document referred to was mai-ked "Exhibit No. 30" for refer-
ence and will be found in the appendix on p. 426.)
Mr. Kennedy. Do you have some papers there from the Park Plaza
Apartments in Portland, Oreg. ?
Mr. Calabrese. Yes, I do.
Mr. Kennedy. Does the application there indicate that Maloney
and possibly McLaughlin resided there from June 1 to July 31, 1955?
Mv. Cal-Abrese. That is correct.
Mr. Kennedy. Who did Mr. Maloney indicate to be his em})loyer
tit that time?
Mr. Calabrese, He listed ^Nlr. Clyde Crosby as employer,
Mr, Kennedy. And what did he say his position was?
Mr. Calabrese. He shows his position as business agent, Teamsters
Union, Third and Holiday Street, telephone EA-8171.
89330— 57— pt. 1 11
156 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Wliat is that number ?
Mr. Calabrese. That, I believe, was formerly the teamsters' build-
ing number in Portland.
Tlie Chairman. That may be made exliibit No. 81.
(The document referred to was marked "Exhibit No. 31" for refer-
ence and will be found in the appendix on p. 428.)
(At this point Senator Kennedy left the room.)
Mr. Kennedy. That was June 1 to July 31, 1955, which is, again,
the jDertinent period in which we are interested ?
Mr. Calabrese. Yes. I might add since there was a question about
the registration of Mr. Maloney's auto, that he lists under make of
car, "Chev '51, Maloney" and then below that "Cad" apparently an
abbreviation for Cadillac, "51, McLaughlin."
Mr. Kennedy. Do you have another registration there on the King
Towers, from August 1 through October 1, 1955 ? That is in Portland,
Oreg.
Mr. Calabrese. That is correct.
Mr. Kennedy. What does Mr. Maloney list there as his employ-
ment ?
Mr. Calabrese. In his application he lists his position as teamsters
union, and under the notation of firm he has written "organizer."
Mr. Kennedy. And that is, again, the pertinent period in which
we are interested, August 1 to October 1, 1955; is that correct?
Mr. Calabrese. Yes.
Mr. Kennedy. Who does Mr. Maloney give as his references?
Mr. Calabrese. He lists as his references Lloyd Hildreth.
Mr. Kennedy. Who was Lloyd Hildreth?
Mr. Calabrese. Lloyd Hildreth was an official in local 223 of the
teamsters.
Mr. Kennedy. Who else does he list ?
Mr. Calabrese. Clyde Crosby.
Mr. Kennedy. What was Clyde Crosby's position at the time?
Mr. Calabrese. I believe at the time he had a position that he holds
now, international organizer.
Mr. Kennedy. And Mat Ryan ?
Mr. Calabrese. And Mat Ryan, who was described to us as an
acquaintance that lived in King Towers at the time.
Mr. Kennedy. Did you subpena the telephone company records?
Excuse me, could we have that made an exhibit?
The Chairman. That may be made exhibit No. 32.
(The document referred to was marked "Exhibited No. 32" for
reference and will be found in the appendix facing p. 429.)
(At this point Senator Goldwater left the room.)
Mr. Calabrese. I might add that in the King Tower apartment
records, there is a letter dated October 5, 1955, to the manager of the
King Tower apartments, stating :
Am being transferred to Los Angeles November 1, and I am giving you notice
that I am vacating. I have enjoyed this apartment very much, and the people
that you have working in this house have been very kind.
I am, as ever,
Tom, Apartment No. 502.
The Chairman. That may be made exhibit No. 33.
(The document referred to was marked "Exhibit No. 33" for refer-
ence and will be found in the appendix on p. 431.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 157
The Chairman. The Chair is advised by counsel that some of this
can be finished up in the morning. Since we would like to have as
many members of the committee present when we are taking testi-
mony as possible, I am going to recess until tomorrow morning. It
is very difticult for members of this select committee to accommodate
themselves to all meetings and stay here all the time. But we do find
sometimes that we do not necessarily make progress by trying to run
on when there are so many members absent, because we have to cover
the same territory again.
We labor under these handicaps, handicaps that are beyond our
control, because the Senate is in session, and the Senators have other
business, other duties, besides their attendance at this select com-
mittee.
I may say for the record that Mr. Maloney, who testified yesterday^
has not been excused as a witness, and he will be recalled. I want
to recall him to give him an opportunity to refute this, admit this, or
take the fifth amendment, whatever he wants to do. I want to be fair
to him. We did not have this in the record yesterday. Since he is
still here, he will be recalled and given an opportunity to refute it or
explain it, whatever he wants to do.
The committee will stand in recess until tomorrow morning at
10 o'clock.
(Present were Senators McClellan and McNamara.)
(Thereupon, at 4:27 p. m., the select committee recessed, to recon-
vene at 10 a. m., Thursday, February 28, 1957.)
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR .MANAGEMENT FIELD
THURSDAY. FEBRUARY 28, 1957
UxiTED Statks Sknate, Sei.ect Commiitee
ox T:M PROPER ACTWITIES IN THE
KMiOR OR Management Field,
Washmgton, D. G.
The select committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January oO, 1957, in the caucus room of the Senate Office
Building, Senator John L. MeClellan (chairman of the select com-
mittee) presiding.
Present: Senator John L. MeClellan, Democrac, Arkansas; Sena-
tor John F. Kennedy, Democrat, Massachusetts; Senator Pat ]\fc-
Namara, Democrat, Michigan; Senator Karl E. Mundt, Republican,
Soutli Dakota; Senator Barry Goldwater, Republican, Arizona.
Also present: Robert F. Kennedy, chief counsel to the select com-
mittee ; Jerome Adlerman, assistant counsel ; Alphonse F. C^alabrese,
investigator; Ruth Young Watt, chief clerk.
The Chairman. The committee will come to order.
( Present at the convening of the hearing were Senators MeClellan,
McNamara, and Goldwater.)
The Chairman. Senator Kennedy has advised the Chair that it
will not be possible for him to be present this morning at this session
of the committee because he is holding hearings and is chairman of a
labor subcommittee, holding hearings on the extension of the mini-
mum wage coverage bill. We regret that he cannot be with us.
Some of the other Senators cannot be present. Senator Ervin, I
believe, is also holding hearings of another committee. Senator Ives
is ill today and unable to be present.
Some of .the others will be here a little later, but we have a. quorum,
and we will proceed.
Your first witness, Mr. Kennedy.
Mr. Kennedy. Mr. Stanley Earl.
The Chairman. Mr. Earl, will you come around, please.
Do you solemnly swear that the evidence jow shall give before this
Senate select committee shall be the truth, the whole ti-uth, and
nothing but the truth, so help you God?
Mr. Earl. I do.
TESTIMONY OF STANLEY W. EAEL
The Chairman. Mr. Earl, will you state your name, your place of
resideiice, and your business or occupation, please, sir?
Mr. Eari.. My name is Stanley W. Earl. I reside in Portland,
Oreg., and I am an elected city commissioner of the city of Portland.
159
160 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. How long have you served in that capacity, Mr.
Earl?
Mr. Earl. I was reelected for a second term beginning January 1,
1957. Each term is 4 years.
The Chairman. You have discussed your testimony with membei-s
of the staff, have you ?
Mr. Earl. Yes, I have been interrogated by members of the staff.
The Chairman. You know generally the line of interrogation that
is expected ?
Mr. Earl. I do ; veiy well.
The Chairman. You also know the rules with respect to your right
to have counsel present, and do you waive counsel ?
Mr. Earl. I waive counsel and I will not invoke the fifth amend-
ment, and I will answer any and all questions put to me publiclj'.
The Chairman. Thank you.
Proceed Mr. Counsel.
Mr. Kennedy. Mr. Earl, could you tell the committee a little bit
about your background, particularly as it applies to the labor union
movement in the country ?
Mr. Earl. Yes. I am happy to.
I first joined a labor union in 1936, the Lumber Sawmill Workers,
AFL. On August 14, 1937, by a referendum vote in the Northwest, we
disaffiliated from the carpenters and joiners, and became a local union
of the Committee for Industrial Organization. At that time I became
active in the Limiber and Sawmill Workers Union, CIO, and I was
elected a sliop steward, a member of the executive board, and in 1938
when the jurisdictional trouble occurred in the Northwest between the
CIO and the AFL I was sent to San Francisco to investigate a lumber
boycott on behalf of the union. The date was February 22, 1938.
The reporter that covered that episode was Mr. Herbert Lundy,
who is today editor of the Portland Oregoniau.
In 1939 I became a vice president of the local union in Portland. In
1940 and 1941 I was elected president of Local Union 5-3 in Portland,
and in the latter part of May of 1942 I was elected business agent and
financial secretary of local 5-3. In 1943 I was asked to run for execu-
tive secretary of the State CIO organization in Oregon, and I was
elected from 1943 until 1949. In September of 1949, at the request
of the Government and the combinecl labor organizations, I went to
Korea as a special assistant to the American mission with the rank
of Foreign Service officer grade 2, and I was a special assistant to Dr.
Bunche, the chief of the American mission, as labor adviser.
I stayed there until 3 days after the outbreak of hostilities. I re-
signed from the ECA and I went to work for the State tax commis-
sion, fraud division, in the State of Oregon. I worked for 18 months
there.
I then ran for city commissioner in 1952 and I was elected and I
ran again and was elected again.
I have served on tlie War Labor Board, the California Opinion
Panel, the regional War Manpower Commission, and various other
activities allied with organized labor in my career.
I took a withdrawal card from the International Woodworkers of
x\merica when I returned from Korea and Avent to work for the State
tax commission. I joined and became a member of the State County
miPROPER ACTIVITIES IN THE LABOR FIELD 161
and Municipal Employees Union in Portland, Oreg., and I am a mem-
ber of that organization at the present time.
Mr. Kennedy. Commissioner Earl, when you ran for public office,
Commissioner, were you supported by the teamsters union?
Mr. Earl. Sir, I have never been supported by the teamster offi-
cials. I have been supported heartily by the rank and tile of the
teamster organization, and of all organized labor in the city of
Portland.
Mr. Kennedy. Were you told prior to the last time that j^ou ran
as commissioner, that you were going to lose the support of the
teamsters union, or teamster officials ?
Mr. Earl. I was told by Mr. Clyde Crosby.
Mr. Kennedy. Who is Mr. Clyde Crosby?
Mr. Earl. He Avas the international organizer for the teamsters
in the State of Oregon, having succeeded John J. Sweene}^ Mr,
Crosby, in a conversation with me on approximately May 18, 1955,
among other things told me that if I did not support pinball legisla-
tion, licensing those devices, I would have the opposition of the
teamsters in the election in 1956. They did give me opposition.
Mr. Kennedy. What had been your position on pinballs? Would
you describe that to the committee?
Mr. Earl. Well, if I might, to help the committee a little bit
Mr. Kennedy. Would you first tell us a little bit about pinballs?
Mr. Earl. That is what I would like to do. In the first place, as
I said, I became a member of the city council in 1953. In July of 1951
pinball devices in the city of Portland were outlawed by city ordi-
nance. The exact language of the ordinance which outlawed those
pinballs said, "Coin in the slot operated devices." That was in 1951.
When that was passed by unanimous vote of the Portland City Coun-
cil, the pinball operators, through Mr. Terry, the largest distributor,
appealed that case to a three-man panel of judges in the Circuit Court
of the State of Oregon, county of Multnomah.
By a 2 to 1 vote, the judges i-uled that the city did not have the
authority to write that into the police code.
The city then appealed to the Oregon Supreme Court. The Oregon
Supreme Court eventually, after several years, upheld the validity
of the 1951 ordinance. The pinball operators then made an appeal
to the United States Supreme Court, and the United States Supreme
Court refused to review the case, and a mandate was finally handed
down to the Oregon Supreme Court and down to the county of Mult-
nomah and then down to the city of Portland. The next thing that
occurred was that the pinball operators then changed their devices.
The ordinance had said, "Coin in the slot operated devices," and they
took the coins in the slot oil and they said that while these are the
same pinball macliines, the law does not apply to them.
^\nien that occurred an ordinance was introduced in the city coun-
cil which banned all pinball machines; whether they were coin
operated was immaterial. They were banned.
The ordinance was passed by a majority vote of the city council, and
tlie teamsters organization, through Mr. Clyde Crosby, then circulated
jietitions and the police action of the ordinance was held up because
the necessary amount of signatures were obtained. That went to the
election in JSIay of 1956, and the people overwhelming upheld the
ordinance.
162 IMPROPER ACTIVITIES IN THE LABOR FIELD
The next thing that occurred, in 1956 the pinball operators in con-
junction with the teamsters organization then passed petitions around
which put on the ballot a measure which would legalize pinball
machines. That measure was defeated by the people in Portland by
over 45,000 votes.
As of today, pinball machines are illegal in the city of Portland.
Mr. Kennedy. What is the reason that they are illegal?
Mr. Earl. The reason they are illegal is because they are character-
ized generally by the public as gambling devices, which they are.
Mr. Kennedy. For what reason were the teamsters so interested in
having them legalized?
^Iv. Earl. I will have to go back a little bit. They will have to
explain their reasons.
I made several statements at the time.
Mr. Kennedy. Are a great number of employees involved?
Mr. Earl. No, there are not. I don't think that there are over 100
altogether. I believe it was on December 20, 1954, that Clyde Crosby
called on me in my office in relation to an amendment to the punchboard
ordinance in the city of Portland. When he lobbied me on that par-
ticular measure, he told me that they had no interest in pinballs, and I
assumed the reason that he said so was because he knew I had been
fighting pinballs since April 28, 1954. That was the day that I moved
in the city council for suspension of the rules and to file and give no
further consideration to an ordinance which I had up until that time
supported.
Commissioner Bows and I in that week, after the hearing went out
and played pinballs, and we had the hearing, and I recalled distinctly
one lady who got up there and told about her husband losing his pay-
check and he was a railroad worker, and we did not take action on the
ordinance that day.
We asked for a week's postponement, and the next week, which was
April 28, 1 did move and the motion was successful, and the legalizing
ordinance was filed and given no further consideration. I said at the
time that I could not conscientiously support that legislation after
finding out what I did about pinballs. I might say that the Oregon
Daily Journal editorialized at some length and spoke highly and glow-
ingly of Commissioner Eai'l and Commissioner Bows for changing
their minds.
Now then, the teamsters came into pinballs as far as I was concerned
activelv. sometime in 1955. T was asked to change mv mind on several
occasions because 1 did become an ardent foe of those devices. I was
called upon by Mr. John Deines and Mr. Lloyd Hildreth
Mr. Kennedy. Who are those gentlemen ?
Mr. Earl. Mr. Deines is secretary and representative of the sani-
tary drivers.
Mr. Kennedy. That is, of the teamster union ?
Mr. Earl. Yes; and Mr. Hildreth was business agent of miscella-
neous local 223, who apparently had jurisdiction on pinballs in the city.
Incidentally, both of those men are personal friends of mine.
Mr. Kennedy. How do you spell Mr. Deines ?
Mr. Earl. D-e-i-n-e-s.
Mr. Kennedy. That is not Mr. Dunis ?
Mr. Earl. No, sir.
Mr. Kennedy. That is Mr. Deines of the teamsters union ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 163
Mr. Earl. INIr. Deines ; that is right.
They asked me and said that they had called on me at the request of
the international representative, Mr. Crosby, and we talked and we
argued, and I told them that I would not change my position. And
they departed. I was next asked to attend a luncheon meeting with
Clyde Crosby as his guest, and the date, I believe, was May 18, 1955.
At that luncheon meeting he first invited me to go to Seattle to meet
some of the boys, and I refused that invitation.
The Chairman. Did he name tlie boys?
Mr. Earl. No, sir; he did not. I have a fair idea.
The Ciiairmax. Why would he want you to leave Portland to go to
Seattle to talk about pinball ordinances?
Mr. Earl. "Well, sir, he did not ask me, and he did not intimate that
I was to go to Seattle to talk about pinballs. I was to get acquainted.
The Chairman. That was in connection with his lobbying for the
pinball legislation, was it not ?
Mr. Earl. AVell, the lobbying will come in just a couple of minutes.
The Chairman. All right ; go ahead.
yiv. Earl. This has a certain sequence. The next thing that he asked
Avas if I were interested in running for mayor of the city of Portland,
iind I assured him I was not. He told me that they were going to sup-
port Fred Peterson for mayoi- in this last election, but he was speaking
riow of. apparently, 19G0. I told him that I had no interest in that.
Finally, our conversation was interrupted by the appearance of ]\Ir.
.Vl Hartung, president of the International Woodworkers of America,
that is, international organization, with headquarters in Portland.
Incidentally, he was also a member of the A'ational CIO executive
board.
I introduced Mr. Hartung to Mr. Crosby and Mr. Hartung left.
The conversation was further interrupted by Mr. Drugas coming
to onr table and asking a question about the building code in the city
of Portland, and after he had left Mr. Crosby told me then, I Jitm
going to use the language almost verbatim, and it will be awful close:
After these financial things I had failed, he said I have a message
for you from John Sweeney, and he said he had seen John in San
Francisco at the D(m Cockell-Marciano fight, for the world heavy-
weight championship, and that was held on a Monday, and I think
the date was May !(>. Had it not been his mention of the Cockell-
Marciano fight I frankly could not have placed the date a year later.
The message was that I either supported pinballs or I would have
political opposition. Now that was a year before the primaries. It
was almost a j'ear to the day before the May primaries of 1056.
I refused that. He had before the council a letter; Crosby had a
letter befoi'e the city council asking for a rehearing on the pinball
issue, and it Avas over that that he had the hmcheon with me. I told
him that I would not vote for reconsideration. As a matter of fact,
when the letter came on the calendar, before the Portland City
Council, I moved that it be filed and given no further consideration
because we had had pinballs kicking around now since 1951. This
was a meeting that was held. He met with me on, T believe, May 18,
1955, and I think on May 19, 1955, was when I moved that his petition
be filed.
From then on I got the opposition of the Oregon Joint Council of
Teamsters, and their newspaper, and various and sundry other per-
164 IMPROPER ACTIVITIES IN THE LABOR FIELD
sons allied with them. I will say the Oregon coin-machine men, the
tavern operators, and they went out in a rather wholehearted manner
to put me out of the commission.
(At this point Senator Mundt entered the room.)
The CriAiRiMAN. Did you ever learn what their interest was in the
pinball project, and did they tell you what interest they had in it?
]Mr. Earl. Well, yes. The reasons always given were that it was
to organize the industry.
The Chairman. To organize?
Mr. Earl. Yes, sir.
The Chairman. You said they only had about 100 employees.
Mr. Earl. I don't know whether they had that many or not. Senator.
The Chairman. They did not have any large number of employees.
Mr. Earl. Certainly not.
The Chairman. They only gave you the reason that they wanted
to organize them.
Mr. Earl, Well, what happened apparently was this: They did
organize the industry and I think that they had to deliver and the
thing they had to deliver was the legalization of pinballs in the city
of Portland. Now, we have a 5-man city government, and we are a
chartered form and we have a mayor and 4 commissioners. It takes
o votes to pass anything in the city of Portland. They just didn't
have 3 votes.
Now, then, I have a background of labor, and I am assuming that
they possiblj' thought they had a champion here and that I would
change my mind. But the thing that has alwaj'S struck me is this :
While I was fighting them the hardest, the teamsters were not in the
pinball-organizing business. They did not go in until sometime, I be-
lieve, in 1955. I could be mistaken on the dates, but I think that is
about the time.
The Chairman. Prior to that time, although you had been in the
fight since 1951 or 1952, prior to 1955 they had never manifested any
particular interest in the pinball operations?
Mr. Earl. I will have to correct you. I did not become again a
member of the council until January of 1953, and the original ordinance
was passed in July of 1951. They did not, to my knowledge, exhibit
any particular interest in legalizing pinballs until sometime in, I would
say, early 1955.
Now, then, there was mentioned here yesterda}^ about a punchboard
ordinance, and I think in fairness to the City Council of Portland,
sir, that I could explain the amendment to the punchboard ordinance
that was passed.
Senator McNamara. Before you leave the pinball operation, I would
like to ask a couple of questions. Were pinballs ever legal in the city
of Portland?
Mr. Earl. Pinballs were licensed in the city of Portland until, I
believe, July of 1951, and they had operated continuously in the city
of Portland from, I would say, 1935, but in 1951 they were outlawed.
Now, then, they were taxed. Pinballs were taxed by the State of
Oregon, a $50 tax, and not a license, but a tax. They were taxed by
the Federal Government $10. But they were not licensed. That was
strictly a tax put on by the State for revenue purposes.
Now, on the punchboard amendment
IMPROPER ACTIVITIES IN THE LABOR FIELD 165
Senator McXamara. I am not quite read}^ to leave the pinball
operation.
You indicated that during the period when they were legal, some
lad}^ came before your city commission and complained that her hus-
band had lost his week's pay. Was that in that period that you
mentioned ?
Mr. Earl. Sir, that date was May 18. Xo, that was about April
17 or 18, of 1954.
Senator McXamaka. Then it would not be in the period when they
were legalized?
Mr. Earl. You see, they were not legal, but through the appeal
to the Oregon Supreme Court and thence to the United States Supreme
Court, the city was enjoined from exercising its police power under
the 1951 ordinance. Then after the validity of that ordinance was
upheld, then the pinball operators said the ordinance applies only to
"coin in the slot," and so they passed over the "coin in the slot" and we
had to start all over again.
So again the next thing was the introduction of an ordinance which
outlaws pinball machines. I was the author of that ordinance.
Senator McXamara. Your efforts were always to keep the machine
from becoming legal by city ordinance?
Mr. Earl. Xo, sir. At one time I was heartily in favor of licensing
pinball machines and getting the revenue.
Senator McXaimara. This was before you became a city commis-
sioner ?
Mr. Earl. Xo, sir, this was while I was a city commissioner.
Senator jMcXamara. Then you changed in the middle?
Mr. Eael. Yes, in one week's time I changed completely.
Senator McXamara. Well, is it not true that generally racket or-
ganizations are putting up a tight to keep things like this illegal rather
than legal ? This is an unusual circumstance where the people that
are presumed to be racketeers are trying to legalize the operation.
That is quite the reverse of what we usually get, is it not, in a racket
operation ?
Mr. E.vrl. If they wereivt licensed by the city, they could not
operate.
Senator McXamara, Well, there are many things that are not li-
censed that operate.
Mr. Earl. I know, but these are so evident. Sir, when you have
2,200 pinball machines in a city with 400,000 population, they are
rather dense, and that is what we had.
Senator McXamara. I understand then that the efforts of the team-
sters officials were to legalize the machines?
]\Ir. Earl. That is exactly what they were, they were to legalize
and have a license fee attached.
Senator McXamara. Thank you.
]Mr. Kennedy. Xow, vou had supported pinballs up until April
of 1954?
Mr. Earl. I supported pinballs, Mr. Kennedy, until April. I might
as well give you the exact date.
Mr. Kennedy. The middle of April, that is all right.
Mr. Earl. It was April 28, 1954.
Mr. Kennedy. And you switched at that time because of the testi-
money before your committee?
166 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Earl. I did. Here is exactlj^ what I said, if I may be permitted
to. This is in the Oregoiiian of that date. It says:
Two of the city council's former cliampinna of legalizing junball maehmes ef-
fectively outlawed tliem Wednesday by conncii iiction dropping a proposed ordi-
nance to license them. They indicated they feel differently about them.
It continues :
"My personal observations." Commissioner Stanley p]arl told a morning Coun-
cil session, "make me say Ihnt 7 could not in all conselousness luiw vote for this
ordinance."
Earl, who several times suggested licensing jiinball machines while the lO.^il
ordinance was held in abeyraice in the courts, said he has been one of the most
vehement champions of the right of persons to play piuball machines. "I be-
lieve it i.s an obligation of a city official to do what he I)elieves right. I was
doing what I thought right, and I am now personally convinced that the best
interests of the city of Port!;uid require the abolition of pinball machines."
Mr. Kennedy. Had you offered the ordinance in 1951 to ]eg:alize
pinball machines ?
Mr. Earl. What is that?
Mr. Kennedy. Had you offered the ordinance?
Mr. Earl. I was not a member of the city council in 1951.
Mr. Kennedy. Xow, tliere is a statement filed witlt the committee
by Mr. Clyde Crosby, who will be a witness, and some of the ques-
tions he 7'aises about your veracity are these :
One of the things he states is that —
Shortly tliereafter, City Commissioner Stanley Earl, who had origiuaUy in
19.51 offered and .supported an ordinance to permit the licensing of pinball
machines in Portland, began a strong and streruious attack upon the pinball
industry in the city.
Were you in the city council at the time?
Mr. Earl. No, sir; I was not.
Mr. Kennedy. Had you offered that ordinance in any way?
Mr. Earl. No, sir. There was no proposal before the city council
in 1951 to license pinballs. The proposal passed Avas to outlaw pinball
n)achines.
Mr. Kennedy. Now another point that is made in this statement
is tliat you started your attack upon pinballs soon after Mr. Elkins
had disposed of his financial interest in that industry.
What is the ex])lanation of that?
Mr. Earl. Well, sir, 1 thiid^ the record will have to speak for itself.
I don't know the exact date that Mr. Elkins leased his routes to Mr.
Terry, but I can tell you again tliat my contint:ed and hearty opposi-
tion to pinballs came April 2S, 1954, and T believe tlip. rex^ord will
indicate that Mr. Elkins and ]\Ir. Ten\y became business associates
around July 31 of 1954. I am not positive but I think it was sometime
after that.
Mr. Kennedy. Rather than before?
Mr, Earl. Yes; and I want to say that that part, or the inference
there is completely and wholly false and malicious.
Mr. Kennedy. Thei-e is a statement in here, also, that you formed
a club, called the Bourbon and Ham C^lub, and I had better read it :
There is in Tort land ;i club known as tlie Rourbon and ITam Club of which
a gooflly number of newspaper people are members. For these functions, Com-
mi.ssioner Earl furnishes plenty of llfpior and food free of charge to the members
of his club. In addition, suitable insignia pins were made available for the
members to wenr if they so desired. Reliable reports strongly indicate that
IMPROPER ACTIVITIES IN THE LABOR FIELD 167
the cost of underwritin.u' this type of tliinii' was lioriie by Air. Dan Tombs, and
Mr. Janies U. Klkius. Two of the people whom i believe tt) be quite prominent
in this eliib and the Press Club, are William Lambert and Wallace Turner, who
jointly, along with Mr. Elkins. are my chief accusers.
That is hy Mr. Crosby.
Mr. Eakl. ^Ve]\, let me sink that one.
Mr. Kennedy. Will you tell about the Bourbon and Ilani Club?
Mr. E.\KL. Yes, sir.
Mr. Kexxedy. Is that all paid by Mi'. Elkins?
Mr. Eakl. No, Mr. Kennedy. If you v\ill allow me 1 will show
you where it comes from.
]\fr. Kennedy. T am jus' readin<>- this, Mr. E.irl. I ain trying U)
get the facts.
Mr. Earl. I am going 1o give them to you.
I have here, Mr. Kennedy, my sworn tinancial statements for the
city of Portland fo^- l!)r>:> election and the 1956 election. Incidentally,
there were no contributors on liere from either tlu- teamsters organiza-
tion or any gambling interests in the city of Portland.
As to my committee, the Earl Campaign Coinmittee, the treasurer
of that is the president of the First National liunk of Portland, a
Mr. C. B. Stevenscvii. lie is my treasurer.
We had contributions ot $828.07, and that was in the primary elec-
tion of lUi'yl. There were 10 persons running r'or office, and I was
nomin;tted, and 1 won in the treneral election bv 95,000 votes.
Now I want to get to the I'i. & II. Club.
Now, in 15)52, in the general election again, we had contributions
from various sources of $900 for my campaign, and we spent $764.44.
Here is a sworn statement of Mr. Stevenson, my treasurer. The bal-
ance between $764.44 and $900, financed what became known as the
B. & H. Club. My campaign headquarters cost $25. They were over
the Oregon Oyster Loft Restaurant in Portland.
Vv'hen tilt campaign was done, and I might say it was not a regular
political cami)aign in the sense you go out and make speeches and you
have ads and all of that, l^ut when it was done we had this balance
left, and I imited the headquarters, in 1952, I invited members of the
press of the ciiy of Portland. Erom the Journal, the Oregon Daily
Journal, these are the members of the B. & H. Club. AVe had bonrbon
and we had ham, and that is why it became the B. & EI. Club. Tho
pins which are s]>oken about were purchased from Koadaway Jewelers
in Portland, Oreg. — I checked this last night — for 79 cents apiece, and
we had 24 of them. They were little brass pins with "B. t.^ PI."'' on
them.
From the Oregon tli.e members are: Joh.n White, (^ity Hall reporter;
Dong ]McKean. eilitor; Stan Weber, labor-management reporter;
]Iarry l^eeding, city editor; Dick Fagan, editorial writer; and Jack
Pement on the city eilitorial stall; George Pasero, sports ediior; .John
Fincli; Jim ir\ine, ;uid (Jeorge Bert/; Al Gould; Waltoi Mattilla;
Hal Layman ; Les ( 'our ; and George Horner ; Bob Fassett; Art Cheno-
weth ; Harry Feneal ; and Jim Running. That is the Journal. These
men are all loyal members of the B. & H. Club in the city of Portland.
From the Oregonian there is George Spagna ; Paul Hauler; John
Armstrong; Mervin Shoemaker, the political editor of the paper;
Herbert Lundy, the editor; and x\l McCready, associate el 'tor; and
Keith Hansen on the city desk; and Bob Webb; Bill Hulen; Dick
168 IMPROPER ACTIVITIES IN THE LABOR FIELD
Nokes : Jalmar Jolmson ; Herman Edwards, the military editor ; and
Malcolm Bauer; and Harold Hughes; and also Russ Sackett of Time-
Life in Seattle ; and George Brown, the State director of the AFL-
CIO in Oregon; and Al Hartung, President of the International
Woodworkers of America ; and Ron Moxness, who was then the edi-
tor of the Oregon Teamster and was forced to resign ; and Sam Wilder-
man, the lawyer. We had one lawyer in there.
Now then we have had six meetings since 1952 and every smgle
cent has come out of the Earl Campaign Committee. "\Aniatever the
balance was in the last election, we had receipts I think of $1,097 and
we spent $696.40. That was when the teamsters said they were going
out to retire me. We had quite a balance left over, and I think we
had two meetings in 1956. One was for the primary, and one in the
general election. Those were financed from the Earl Campaign Com-
mittee, and Mr. C. B. Stevenson, president of the bank wrote the
check, and not Mr. Elkins.
The CiiAiTtMAN. I understood you to say in your campaigns, that
not a dollar was received from either the labor interests or the gam-
bling interests.
Mr. Earl. No, sir; I said not a dollar was received from the team-
sters organization or from any gambling interests. I did receive con-
tributions from bona fide labor organizations, and I have the list
right here.
The Chairman. I misunderstood you. You said that you had
received none from the teamsters, and nothing from gamblers.
Mr. Earl. I did not ; neither one.
The Chairman. According to your testimony, no gambler, recog-
nized as such, financed any luncheon or anything else?
Mr. Earl. No, sir, no gambler has ever financed any luncheon of
the B. & H. Club. We have had six meetings, and we don't have a
secretary and we don't have a president and we don't have any books.
What it is is newspapermen, they come and they drink all of the bour-
bon they can, and they eat all of the ham they can and then they play
poker, and it is held in the Press (^lub in Portland, Oreg.
The Chairman. Proceed.
Mr. Earl. I might sa}' that Mr. Lambert has only been to one meet-
ing of the B. & H. Club, and lie is not a very loyal member.
Mr. Kennedy. Then the statement that he is a very loyal member
and one of your most prominent members is not true?
Mr. Earl. He is prominent now, Mr. Kennedy.
Mr. Kennedy. Now, Mr. Earl, going back just briefly, you said
that Clyde Crosby came to you and said that unless you supported
this pinball ordinance the teamsters were going to oppose you?
Mr. Earl. That is correct.
Mr. Kennedy. That had come from John Sweeney?
Mr. Earl. He said that the message was from John Sweeney.
Mr. Kennedy. Did the teamsters oppose you after that?
Mr. Earl. They certainly did.
Mr. Kennedy. Did they contribule to the cnnipaign of your oppo-
sition ?
Mr. Earl. Yes; there were six candidates in the field, and the team-
ster organization sponsored the county auditor, Mr. John J., Jack
O'Doniiell, and tliey contributed, and I think maybe you have it on
file, four thousand seven hundred and fifty dollars-and-some-odd
IMPROPER ACTIVITIES IX THE LABOR FIELD 169
<'ents. They had billboards and they had TV and they had radio and
they had throwaways and they had a newspaper,
Tlie Chairmax. What are "throAvaways" ?
Mr. Earl. That is dodgers. I don't know what they are. All I
had was myself.
Mr. Kennedy. Xow, there also had been a paper circulated among
members of the committee, about certain difficulties that you have
been in with the law, Mr. Earl ?
Mr. Earl. Sir, would you identify the paper?
Mr. Kennedy. Well, it is a yellow sheet here, and it says, "Oregon
.Journal's analysis of the vice situation in Portland," and that has
been furnished to certain members of the committee. In it, it makes
some statements about you being indicted and getting into fights
when you were in tlie union, and would you explain that?
Mr. Earl. I will be very happy to. I was arrested in 1942 in the
.cit}' of Spokane at the Internatiojial Convention of the IWA. In
1942 Ave were having quite a tight with the Comnumist control of our
international organization. The president at that time was Mr.
Harold J. Perchette. We were from what we called the Columbia
River district, and when we moved into the convention it was like an
armed camp. The Communists were in the organization fighting for
a resolution to o]:»en a second front, to apparently take pressure off
of Russia. We from the Columbia River, and the various other local
unions opposed that, and opposed it hard. We were not going to be
made a tool of the Communist Party for purposes of propaganda. On
the floor of that convention a fellow traveler, or a Communist, at
least I will say he is a Commimist, he called myself and several othei-s
red-baiting rats from the Columbia River.
Mr. Kennedy. What was his name?
Mr. Earl. His name was Deimis Dyer, and if you have got facilities
you might look him up. and I think that you will find he is a member
of the ]>arty.
AVhen he let that go, I must confess I was a little warmheaded, and
on occasion I still am. I called on Mr. Dyer and I paid him my
res]>ects. I was arrested, and I received the thanks of various and
sundry local unions for upholding the honor and dignity and the
prestige of the Columbia River woodworkers against the party.
That was that incident.
In 1939, on May 5, 1939, I was one of the persons named, and I
niight as well read it to you because this is authentic and I will just
read a j^ortion of it. This is from the Oregonian of May 5, 1939, and
it says :
Pickets Iniiictei) Undek Law
Grnnd .iury accused 21 of i.ffiiorin.ir State bau on dock. Arrests uiade for
alleged conteiiii)t nf corirt.
It says —
First court test of chapter 2 of Oresron'.s uew law regulating picketing was
launched here Thursday, with the indictment of 21 men charged jointly with
inilawful picketing of the steamer Vernnr of the Marcalmar Lines —
and I Avas one of the 21 persons named.
And as a result of that court test the Oregon antipicketing act was
de<'lared constitutional.
170 IMPROPER ACTIVITIES IN THE LABOR FIELD
That is the only time, sir, I have ever even been in semidifficulty
with the law.
Now, that picketing- law came about because of the goon activities
of the teamsters union in Oregon. When I say that I mean the burn-
ing down of the West Salem Box Factory for which their Secretary
Al Rose was sentenced to 12 years in the Oregon State Penitentiary,
and the bombing and dynamiting of the Drill Dry Cleaning Works in
Portland, Oreg., around 1938, and the bombing of the Bear Tavern out
at Plillsboro, Oreg., and the acid spraying of over 200 cars by members
of the teamsters organization, and various and sundry other acts.
The Chairman. Did you oppose those activities?
M)'. Earl. Sir, I didn't only oppose them, I was in the middle of
them. I was CIO, and we were fighting for our lives at that time.
Yes, sir. I did oppose them.
Senator McNamara. May I ask the witness how many members are
on t'e commission or coun^'il which you referred to?
]VIr. Earl. Of tlie city of Portland, there are 5 ; mayor and 4 com-
missioners.
Senator McNamara. Is it a paid job to be a member?
Mr. Earl. Yes, it is a full-time paid jol) and there is a constitutional
bar to any outside employment or reniuneration.
Senator McNamara, What is the salary?
Mr. Earl. I get $10,080.20 a year, and the mayor gets $11,800.
Senator McNamara. Thank you.
The Chairman. Are there any further questions? Do you have
anything else you wish to say?
Mr. Earl. Yes, on that document that you have there, Mr. Kennedy,
I think that a person should be allowed to face his accuser, and to
know the source of certain things. I read that last night for the first
time and it is completely scurrilous, and if you desire, sir, to ask me
any questions out of there or anyone does, I want to give the answers.
I think it is highly prejudicial to my interests. I want to tell you I am
47 years of age and I have resided in Portland all of my life, and I
have 3 children, and I have a daughter 15 going to high school, and a
boy 4, and I have a daughter 7 going to grammar school. JMy mother
and father are living in the city of Portland, and they are elderly,
and my brother is a member of the Oregon State Police and he has
been for 20 years,
I think that I am a respected citizen, and I have the confidence of
the people of Portland.
But that document there is entirely unfair, and certainly I do be-
lieve it needs to be identified. I was completely amazed at a responsi-
ble newspaper tliat would do anything like that without at least calling
me, a public official, and saying, "Are these things true?"
It is reminiscent of Mr. Crosby's statement of which I have read,
and I think that was composed by a man who is very close to Tom
Maloney. Yes, sir, I think that was composed by Brad Williams, of
the Oregon Journal, and I think, or I know he is the man who was
able to get to ]\Ir. Tom ]\Ialoney when the State police couldn't find
him and I think that he wrote his confession for hiuL
I resent it very much as an official and as a citizen.
The (^HAiRMAN. The Chair has not read it. You have read this
document, have you?
IMPROPER ACTIVITIES IN THE LABOR FIELD 171
Mr. Earl. I certainly have.
Tlie Chairman. Is there 11113- further statement you wish to make
about it?
Mr. Earl. Not unless it is prejudicial through son\e of the Senators.
There are some statements in there that ai'e so libelous that certainly
action will have to be taken.
The Chairman. I notice the statement is not signed.
Mr. Earl. I think that I have a right to have that identified, because
it certainly mentions me.
The Chairman. Insofar as we can, we are glad to identify it be-
cause it is not signed. I do not know how it was received. Can you
tell us how it was received ?
Mr. Kennedy. I was given it by a Senator who had received it.
Again I do not know what the sequence is. The Senator is not present
and the man who sent it up is present, and it was another newspaper-
man. Maybe he would like to give an explanation.
Mr. Earl. If I may say so, the other evening, Tuesday evening, T
had a telephone call from a man who identified himself as Jack
Anderson, Avith Drew PearsoiL I did not l)elieve that it was a Mr.
Anderson, and he engaged me on the telephone conversation relating
ai)parently to certain parts of that document. At that time I had not
seen it. I made some facetious statements to him, and in fact I told
liim he was a phony, and he was a fraud, and I said, "* Vou are not Jack
Anderson,'" and he kept saying, "I am; call me back."' And while I
Avas talking to him I tried to get the telephone call traced and I could
not do that, and I didn't know- until yesterd ly afternoon.
I called my home in Portland, and talked to my wife, and I asked
her if I luid any calls and slie said, ''Yes; yon had a call from Wash-
ington, 1). C, and I told him you were staying at the C^irroll Arms in
Washington,'' and I felt pretty sick because that happened to be Mr.
Anderson that had called my home in Portland, and my wife had given
liim my })hone number here. I might say to Mr. Anderson, wherever
you are, I apologize for saying you are a phony and a fraud, but I did
not believe it Avas you and I hadn't had the opportunity of reading
this document that I had last night.
So again, AvhereA'er you may be, I express my apologies.
Mr. Kennedy. Did you tell Mr, Anderson vou Avere in business Avith
Mr. Elkins?
IMr. Earl. He apparentl}' mentioned some of this out of, I believe,
this document, or the other one. I said, "Yes; we made betAveen 3 and
4 million dollars last year." Last night I got a little bit ill, thinking
about some of the things I told iMr. Anderson, because that column is
cii'culated in the city of Portland thi-ough the Oregon Journal. Need-
less to say, intei-nal rcAenue AA'ill pi-ove I did not.
Senator (toi.davater. Mr. Earl, Avhen you read this and noticed it
was called the Oregon Journal's analysis of the vice situation in Port-
land, did you contact the Oregon Journ.al to see if the owners or
editors of that paj)er identified themselves Avith this statement?
Mr. PlvRL. No, sir; I did not. I am certainly going to, though.
Senator Mitndt. yiv. Earl, I got a little los't in the colloquy. This
news])aper article, is that the one that Mr. Anderson Avas quoting to
you from or Avas that the one he Avrote?
89S30— 57— pt. 1 12
172 IMPROPER ACTIVITIES IN THE LABOR FIELD
Ml". Eari,. 1 would take it, not havin<2,- had the benefit of reading it
when I talked to him, but havin<^ read it later, that apparently what
they were doino- was to try and establish a connection between Mr.
Elkins and niy self.
I mio-ht say, sir, that in the city of Portland I closed some of
Mr. Elkins' establishments.
Senator Mundt. That is not quite responsive to my question. I had
not seen or heard of this article until this morning and I was not clear
from your earlier testimony about a telephone call, whether this
article was something which you felt that Mr. Anderson had written.
Mr. Earl. No, sir.
Senator Mundt. Or it was sometliing he had in his possession and
he was asking you questions about?
Mr. Earl. I don't think Mr. Anderson had anything to do with
writing it; but the questions on Mr. Elkins he posed to me were this —
for instance on pinballs, along this line:
Wliy did you fight pinballs after Elkins got rid of his business?
Which is completely untrue. I didn't. Those things aj^peared to me
to either have come out of the Crosby letter which he has submitted
or out of this.
But no, Mr. Anderson I don't think would have anything at all to
do with anything as scurrilous as that.
Senator Mitndt. I wanted to find out.
Mr. Earl. I am sorry again I talked to him the way I did.
The Chairman. I think that you have already stated it, but have
vou ever had any business relations in any way whatsoever with
Mr. Elkins?
Mr. Earl. No, sir ; I have not.
The Chairman. All right.
Mr. Earl. Nor with his brother, Fred.
Mr. Kknnedy. There is a statement in there about the fact that
you wrote a letter to the Governor of Arizona, I believe, in 1947 and
1948, asking for a pardon for Mr. Elkins.
Mr. Earl. Yes, sir; that is the only part of the entire document
that is true, as far as I am concerned.
jNIr. Kennedy. Did you do that ?
Mr. Earl. Yes; I did. In 1948, in the summer of 1948 I was asked
by the former chief of ])olice, who was then the inspector of police,
and his name was Leon V. Jenkins, if I on behalf of organized labor
would send a letter which was a "'To whom it may concern" letter to
the Arizona Board of Pardons and Paroles.
Mv. Hartung, then CIO director for the State of Oregon, also was
requested and this was a joint request, and Inspector Jenkins then
sent to my office a Portland detective M'ith a suggested letter. In tliat
letter I said that I knew Mr. Elkins and I knew his family. I did
not and I didn't know whether he had 1 wife or 2 wives or children.
That letter was sent and hei-e was wdiy : Jenkins said that the man
deserved consideration. "What the consideration was, I do not know.
l)ut I was told this, and this is true, that the Governor of the State
of Oregon, a captain of j:)olice. and a judge were all sending in a letter
to the Arizonji board for a restoration of his civil rights.
I was told that Elkins had been in trouble in 1932 or 1931 in Arizona
and he had been out of the penitentiary for 16 years and this was for
restoration of voting- rights.
IMPROPER ACTIVITIES IN THE LABOR FIELD 173
After consultation witli Mr. Ilartiino;, we decided I would send the
letter as CIO executive secretary, and I was told that thej^ needed a
letter from organized labor. I did send the letter. That, incidentally,
is the only part of that thing that is true.
Senator McNamara. You say that you sent this letter on behalf of
organized labor. Were you authorized by the rank and file meeting
to do so?
Mr. Earl. No, sir; and I did not state in the letter that it was on
behalf of organized labor. I sent it as a citizen but not with any
suggestion in there that organized labor was taking any part in that
particular thing.
Senator McNamara. Your statement that you sent it on behalf of
organized labor was erroneous.
Mr. Earl. Yes, sir. The implication, when you get a letter from a
labor organization or secretary of a labor organization, is that here
is a person from labor who along with the Governor of the State,
a judge, and a police captain, an inspector, and the chief of police, I
believe, were interested in this particular party.
Incidentally, that is not the only letter I have ever sent for persons
who are inmates of State penitentiary. I think that I have sent six
on various occasions, at the request, some of the prison associations
and tliis one did come from the inspector of police in the city of Port-
land.
The Chairman. Mr. Earl, the Chair is advised by counsel that it
is not likely we will need any further testimony from you and so,
therefore, you may be excused.
Mr. Earl. Thank you very much and I will be very happy to come
if you want me.
The Chairjvian. All right, Mr. Elkins, be seated.
TESTIMONY OF JAMES B. ELKINS— Resumed
(Present at this point in the testimony were Senators McClellan,
McNamara, Mundt, and Goldwater.)
The Chairman. We will resume your testimony. Counsel may
proceed.
Mr. Kennedy. You discussed with the committee various projects
that McLaughlin and Maloney and you were attempting to set up in
the citj- of Portland, is that right, or attempting through you, to set
up: is that right?
Mr. Elkins. That is right.
Mr. Kennedy. Now, during this time, were they discussing the fact
that they had to make reports back to John Sweeney and Frank
Brewster?
Mr. Elkins. That's right.
Mr. Kennedy. Did they also indicate to you that they had to make
an accounting to Frank Brewster and John Sweeney as to what money
they made?
Mr. Elkins. Well, I don-t knoAV which one of them. It was in this
way : Tom Maloney made the statement many times that John Sweeney
and Frank Brewster were unhappy because they weren't showing any
results to speak of.
Mr. Kennedy. This was later on, during 1955?
Mr. Elkins. That's correct.
174 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kexnedy. Now, getting into one particular matter which has
been discussed here this morning, that is the pinball operation, did
you people have any plan of operation in the pinball industry^
Mr. Elkixs. Yes.' I had a ]nnball route and there weren't too many
locations o]i it and I leased it in July of 1054 to Mr. Stan Terry.
Mr. Kennedy. Wliich, incidentally, was after the time that Mr.
Earl came out in opposition to the pinballs.
Mr. Elkins. Yes. He has caused me lots of trouble. Earl has.
He is on one side of the fence and I was on the other. He was running
the city club and he was seizing slot machines at the time we were
operating.
Mr, Kennedy. Did he ever seize any of your slot machines?
Mr, Elkins. Yes: he sat on them so that you couldn't move them
until the police got there. I think on about three occasions.
Mr, Kennedy. Have you ever been in business with Mr. Earl?
Mr. Elkins. Beg pardon.
Mr. Kennedy. Have you ever been in any business with Mr. Earl?
Mr. Elkins, No, I ha^e not.
Mr. Kennedy. AYill you tell us about what your operation was as
far as the pinballs^ Did you ever contribute to any of Mr. Stanley
Earl's campaigns?
Mr. Elkins. I did not. The reason I didn't even try was because
another gambler told me that he iiad tried to contribute and P^ari
wouldn't accept it, so it wouldn't have done me any good if 1 wanted
to contribute, he wouldn't have accepted it.
Mr. Kennedy. Did they tell you about tliis pinball operation, did
Tom Maloney tell you anything about what Frank Brewster and
,J()]\n Sweeney wanted you to do with pinballs ?
Mr. IClkins, Yes ; they told me that they wanted me, John Sweeney
and l^rewster had ordered them to tell me to take the route back from
Stan Terry.
]Mr. Kennedy. Did you say that you would agree to that ?
Mr. Elkins. I said that I wouldn't,
Mr. Kennedy. What is that ?
JNIr. Elkins. I said I couldn't.
Mr. Kennedy. There was some discussion about breaking the agree-
ment that you had made with Stan Terry.
Mr. Elkins. I said I couldn't break it, because he kept his end of
the agreement up.
Mr, Kennp:dy. Did your brother Fred and Joe ]\IcLaughlin then
go to see Mr. Budge Wright ?
Mr. P]lkins. Yes: they discussed it to some extent and they were
thinking who would be the right man for the front of it if I wouldn't
be. So they decided that Budge Wright would because he was a
distributor and he had access to equipment and he would be the proper
man.
^Ir. Kennedy. Budge Wright said he \\anted to talk to you rather
than to Joe McLaughlin?
Mr. P^LKiNS. That's correct.
Mr. Kennedy. Now, did you then have a discussion and conference
with Joe McLaughlin and Budge Wright?
Mr. Elkins. I did.
Mr. Kennedy. Now, Budge lA'right was a distributor of pinball
machines at that time ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 175
Mr. Elkixs. Tlifit's correct.
Mr. Kexnedy. AVliat was said in that discussion as far as the tieup
with the teamster union and what j^ou people would do, and what
kind of an operation 3'ou would i)ut into effect?
Mr. P^LKixs. AVelh it was (juite a lengthy discussion. Budge was
told by JMcLaughlin tliat he had final say on anything concerning
{>inl)alls and inuichboards, I l)elieve he mentioned at the time, too, and
lie luul the backing of tlie teamsters as far as getting equipment.
Mr. Kexxedy. What was meant by that, "the backing of the team-
sters as far as getting equipment'' ?
Mr. Eekixs. Well, Budge had lost his distributorship for the Bally
line.
Mr. Kennedy. That was a line operating out of where?
Mr. Em-cixs. It is out of Chicago, I think, and they make the
•equipment.
Mr. Kexxedy. They make this coin-machine equipment ?
Mr. Elkix's. That's correct.
Mr. Kex^x^edy. Including slot machines?
Mr, Elkix^s. Yes, they make pinball machines.
Mr. Kexx^edy. And Joe McLaughlin said that through the con-
nections witli tlie teamsters, Budge '\Vright would be able to get that
Bally line back?
Mr. Elkix's. That's connect.
Mr. Kexxedy. Did he talk about the connections of the teamsters
with various other cities?
Mr. Elkixs. Yes, sir.
Mr. Kennedy. What did he say about hoAv teamsters could help
tlieni?
Mr. Elkixs. Well, he said that they would work it the same as they
had in other towns. They could picket or we could take over any
location that he wanted.
Mr. Kexxedy. He could have any location that he wanted?
Mr. Elkix^s. That's correct.
Mr. Kexxedy. What was meant by that and how were they going
to operate that?
r\Ir. Elkixs. Well, do you want to know how they were going to
rake the locations?
Mr. Kennedy. Yes.
Mr. Elkix's. By picketing.
M)-. Kexxedy. What was going to be done, can you explain that?
Mr. Elkins. They would send a man around from the teamsters.
Mr. Kex'^x^edy. Now, ''they'' is who?
Mr. Elkix^s. Clyde Crosby Avonld send a man around from the
teauLSters and the man vrcjuld tell the tavern owner or innkeeper, or
whoever it might be that he would have to get his pinballs up or they
were going to operate it by union, with a union sticker on it.
Senator Muxdt. Is that something that actually happened or is
this a process that they were describing as a possibility ?
Mr. Elkix'S. It happened.
Senator Mundt. This actually did happen?
Mr. Elkins. That's right.
Senator Mundt. While I am interrogating you, I would like to find
^•ut what motivated you to lease your pinball line to Mr, Terry.
176 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. Wei], business as much as anything else. It wasn't
too profitable a business, to me it wasn't.
Senator Mundt. Would it be more profitable to him ?
Mr. Ei.Kixs. Well, he wouldn't have to hire any more men to run
37 more locations, and I believe that is about the correct amount.
Senator Mundt. You mean the number of your locations had
dwindled to the point where the profits were not important enough
to continue, is that what you are telling us ?
Mr. Elkins. That's right.
Mr. Kennedy. Now, you had this discussion and I want to go back
to that as to what was held out to Mr. Budge Wright. First, was
there going to be a company formed, is that the center of the whole
thing ?
Mr. Elkins. That is correct. We eventually formed a company.
Mr. Kennedy. Now, that was to be formed around ]Mr. Budge
Wright, is that correct?
Mr. Elkins. That's right.
Mr. Kennedy. Joe McLaughlin held out to Mr. Budge Wright
that with the influence of the teamsters they could take over the whole
of the operation in the city of Portland.
Mr. Elkins. That is correct and ])articularly Stan Terry's business
who had been a headache to Budge Wright.
Mr. Kennedy. Mr. Stanley Terry was the biggest operator at that
time in the city of Portland.
Mr. Elkins. That's correct.
Mr. Kennedy. So they were going to concentrate on him first, is
that right?
Mr. Elkins. That's right.
Mr. Kennedy. The teamsters would go in and use their force or
their power and picket a place and make that tavern take one of your
machines.
Mr. Elkins. That's right, one of a company that Budge Wright
was going to form.
Mr. Kennedy. Was there also discussion about allowing other dis-
tributors in the union; that was a very important factor, was it not?
Mr, Elkins. It was. They weren't to let anyone in without Budge
okaying them.
Senator Mundt. Now, at the time tliat Terry took over your line,
you had been unionized for some time ?
Mr. Elkins. That's correct.
Senator Mundt. Did he take over your men, too ?
Mr. Elkins. No, he did not.
Senator Mundt. You kept your men ?
Mr. Elkins. That's right. "
Senator Mundt. So that his taking over your lines, he was still
outside the union.
Mr. Elkins. That is right, but he had 37 locations that were
unionized.
Senator Mundt. He had 37?
Mr. Elkins. Well, he was operating them but they were still union
machines.
Senator Mundt. Was Stanley Terrv a friend of Tom Malonev's,
too?
Mr, Elkins, Stanley Terrj-, no.
IMPROPER ACTIVITIES IN THE LABOR FIELD 177
Senator Mundt. How did he get into the union?
Mr. Elkins. He didn't get in the union right then.
Senator Mundt. He had 37 that were unionized.
Mr. Elkixs. That's riglit, but there wasn't anything said about
that, because 1 had leased those to him. There was only one location
there was any discussion about.
Senator Mundt. Let me see if I get it clear. You leased him 37
unionized locations, but you did not transfer your personnel. Your
union personnel was not transferred to him.
Mr. Elkins. That's right.
Senator Mundt. So that even though he had unionized locations,
he was outside the union and he could not get this teamster protection.
Mr. Elkins. That's right. It eventually came up that they were
going to take those locations, too.
Senator jMundt. As I understand it, there was some ill will between
Tom Maloney and Stanley Terry.
Mr. Elkins. Well, I don't know. I don't think Tom Maloney ac-
tually knew Stanley Terry, only by reputation ; that's all.
Senator Mundt. Was Tom Maloney trying to unionize them then?
Mr. Elkins. No, he didn't want him in the union.
Senator Mundt. Why not?
Mr. Elkins. He wanted those locations.
Senator Mundt. He wanted them for himself?
Mr. Elkins. Yes, sir.
Senator Mundt. And he looked on Terry as a competitor ?
Mr. Elkins. That's right.
Mr. Kennedy. Now, can we go through briefly again an explana-
tion as to how this company was to operate ? There were possibly 20'
or more distributors of pinballs in the city of Portland; is that right?
Mr. Elkins. I would say more than that.
Mr. Kennedy. And there are approximately 2,000 machines, be-
tween 1,200 and 2,000 machines?
Mr. Elkins. I believe that is about right.
Mr. Kennedy. And at that time, none of them were unionized ex-
cept possibly the ones that Norman Nemer operated and your own.
Mr. Elkins. That's correct.
Mr. Kennedy. This was going to be a new company that was going
to be formed ; is that right ?
Ml-. Elkins. That's right. Mine weren't considered unionized after
the time they formed the Acme Co., when he eventually formed the
Acme Amusement Co.
Mr. Kennedy. Finally, this group of Joe McLaughlin, you and
your brother and Budge Wright formed a company; is that right?
Mr. Elkins. Budge Wright, Joe ^McLaughlin, Fred Elkins, and a
man by the name of Walter formed a company.
Mr. Kennedy. You were not in it, yourself?
Mr. Elkins. No.
Mr. Kennedy. You were not one of the four ?
Mr. Elkins. No; that is correct.
Mr. Kennedy. You were in the background.
Mr. Elkins. That's right.
Mr. Kennedy, Now, what was discussed at this meeting. There
were 2 or 3 other meetings with Budge Wright. Were there 2 or 3
other meetings?
178 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. I would say at least that.
Mr. Ke^s^xedy. Diii'in^^ this period of time, you were discussing how
this operation was going to go, is that right?
Mr. Elkins. That is correct.
]Mr. Kexxedy. Could you tell the committee what was explained by
Mr. Joe McLaughlin as to how this company was going to operate and
what the advantage of this company was going to be and what the
advantage of being tied up with the teamsters was ?
Mr. Elkins. The advantage was simply that these other men would
not be let into the union until this Acme Co. got the best locations and
they would only let in the smaller operators that were buying equip-
ment from Budge T^^right.
jMr. Kennedy. They were going to let in a few small operators, but
they were not going to allow the big operators in?
jMr. Elkins. No; eventually there would be some larger operators
let in, at a later date.
]Mr. Kennedy. Was it agreed that you were going to keep the other
operators out even if they applied for membership and the teamsters
Avon Id keep them out?
Mr. Elkins. Tliat is right. I think they were wanting in pretty
bad by that time.
Mr. Kennedy. Did Joe Mclaughlin indicate he was going to keep
them out?
Mr. Elkins. That is right.
Mr. Kennedy. That tlie teamsters would?
]Mr. Elkins. That is right.
Mr. Kennedy\ Did he also discuss the fact that he would send the
business agent of the teamsters around to close these taverns that
wouldn't take your machines?
Mr. Elkins. That is right.
Mr. Kennedy. And that they would start, or you were going to
supply a list of some of Stan Terry's operations?
Mr. Elkins. That is riglit.
Mr. Kennedy. And then tliey would send these teamsters' business
agents around and they would tell the owner of the cafe that they had
better have a union machine or otherwise they were going to have
pickets outside and not allow beer to be delivered.
Mr. Elkins. That's correct.
Mr. Kennedy. Was tliat the fundamental idea in the operation?
Mr. Elkins. That's right.
Mr. Kennedy. Now. did you supply such a list?
Mr. Elkins. I did.
Mr. Kennedy. Can you think of some of the names of the taverns
that were on it?
Mr. Elkins. No, because I didn't make the list up.
Mr. Kennedy. Who made the list up for you?
Mr. Elkins. I think an employee of ours and my brother made
the list up.
Mr. Kennedy. Did you ever see the list?
Mr. Elkins. Yes, and it was given to me to give to Joe.
Mr. Kennedy. Do you remember any of the names on the list?
Mr. Elkins. Portsmouth Cocktail Lounge, I believe, was one of
them.
JMr. Kennedy. Was the Mount Hood Cafe one of them ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 179
Mr. Ei.KiNS. Not on my list. I believe that was picked out by
Walters.
Mr. Kennedy. AVho was a partner of BuJ<2:e Wright ^
Mr, Elkins, Yes. He was going to operate and be the front man
for that.
Mr. Kennedy. How many were on your list, the initial list?
Ml-. Elkins. The first list, I think, was about live, but they were in
outlying districts. They didn't want to take a location from right
in the city or right in the main business area first.
Mr. Kennedy. Tell me this: What was the status of the pinballs at
that time {' Were they legal or illegal?
Mr. Elkins. They were illegal, only they were running on some
kind of a writ which had been issued by the courts and appealed.
Mr. Kennedy. Was there any discussion at these meetings about
the fact that they were illegal, and that the writ of the court might
be overruled and that you would lose your operations ?
Mr. Elkins. That's correct.
Mr. Kennedy. What did you think that you could do about that?
Mr. Elkins. Well, Mr. McLaughlin insisted that Crosby could
change the cit}- commisioner's mind and I was under the impression
that he could not and that is one of the reasons I leased my route to
Stan Terrv. because I thought eventuallv the council w^ould vote them
out.
Mr. Kennedy. And did Joe McLaughlin say that Clyde Crosby
would go and visit the commissioners and try to get them to change?
Mr. Elkins. That is exactly right.
Mr. Kennedy. And get an ordinance through that would make these
pinballs legal; is that right?
Mr. Elkins That is right.
]\rr. Kennedy. Did you understand that lie made such visits to the
commissioners and to the mayor?
Mr. Elkins. Not right then he hadn't, and I think that he began
then to do it.
Mr. Kennedy. Now, this Acme Amusement (^o. then was formed
with the four of you?
Mr. Elkins. That's right.
Mr. Kennedy. And the lists were supplied, and then did it go into
o}»eration?
Ml-. Elkins. Yes.
Mr. Kennedy. Did the teamsters union business agents start going
around to these various places?
Mr. P^LKiNs. That's right.
Mr. Kennedy. Did you understand that one of the places that
they came to was the Mount Hood Cafe ?
Mr. Elkins. That's right.
Mr. Kennedy. And they started a picket of the Mount Hood Caf e ^
Mr. Elkins. That's right, and they called the Dollar and Penny,
which had been one of my old locations.
]\Ir. Kennedy. That is another location : th(> Dollar and Penny
location i
Mr. Elkins. Yes, sir.
Mr. Kennedy. Did you hear of any report on that?
Mr. Elkins. Yes, sir; he told me that he had received a phone call
from ]\f r. Crosby, I believe he told me, and tiuit he was going to throw
180 IMPROPER ACTIVITIES IN THE LABOR FIELI>
those machines, set them out on the street, if they didn't ^et them
by noon, and he was told to take those out and put Acme in, that they
were unionized.
Mr. Kennedy. What was the international organizer of the
teamsters doing in this kind of an operation? This was the local
union. The head of the local union should have been in charge of it,
should he not, or do you know that?
Mr. Elkins. I don't know.
Mr. Kennedy. Mr. Clyde Crosby is the one that was supposed to
do it?
Mr. Elkins. He was cooperating to the best of his ability.
Senator Mundt. Do you know the name of the business agent that
visited the Mount Hood Cafe?
Mr. Elkins. Frank Malloy.
Senator Mundt. He was a business agent for the teamsters ?
]Mr. Elkins. He is a teamster, that is all I know.
Senator Mundt. Let me see if I understand the picture correctly.
They pick out some shop like the Mount Hood Cafe.
Mr. Elkins. That is correct.
Senator Mundt. And tell them that, "You are not unionized and
consequently, we are going to picket you."
Mr. Elkins. Yes, sir.
Senator Mundt. If the Mount Hood Cafe wanted to get unionized,
they wouldn't let them get unionized, is that not true?
Mr. Elkins. That is right.
Senator Mundt. They were not trying really to get new union
members, they were trying to blackball people out of business.
Mr. Elkins. That is right.
Senator Mundt. Is that right?
Mr. Elkins. That is correct.
Senator Mundt. No effort was made to say to them, "If you get
to be a unionized shop, O. K. But if you are not a union shop, out
jou go."
Mr. Elkins. Just about that way. They were told if they put in
the unionized machines, of Acme, that that would be all right.
Senator Mundt. They were not trying to pick up new union
members ?
Mr. Elkins. No, sir.
Senator Mundt. To build up tlie union.
Mr. Elkins. No, sir.
Senator Mundt. And expand the membership.
Mr. Elkins. No, sir.
Senator Mundt. They were simply using the union as a club to put
Acme, their own outfit, into the pinball business in these new locations.
Mr. Elkins. That is correct.
Senator Mundt. Make it a monopoly.
Mr. Elkins. That is right.
Senator Mundt. How much did 3'ou think that they would get out
of that?
Mr. Elkins. Out of this?
Senator Mundt. If they succeeded, were you expanding throughout
the city and throughout the State ?
Mr. Elkins. There was talk of being a state-wide operation; yes.
IMPROPER ACTIVITIES IN THE LABOR FIELD 181
Senator Muxdt. You liave had some experience in that business.
Had the phxns succeeded, what do you think would have been the
annual take?
Mr. Elkins. Oh Lord, it would have been terrifRc. It would have
been fantastic, the amount.
Senator Muxdt. Fantastic out in Portland is one thing and back in
South Dakota it would be something else. $10 is a lot of money back
home.
Mr. Elkixs. I would say a quarter of a million a year, conserva-
tively speaking.
Senator jMundt. That would have been split among the members of
Acme, plus you and plus Tom Maloney.
Mr. Elkins. That's right.
Senator Muxdt. As I understand it, neither you nor Tom Maloney
were in Acme.
Mr. Elkixs. That's correct.
Senator Muxdt. As far as officers were concerned.
Mr. Elkix^s. That's right. We were silent partners.
Senator jMuxdt. You and Tom Malone}'^ would both have taken
jour share of the take ?
Mr. Elkixs That is correct.
Senator McNamara. Apparently you are an expert in this field of
pinball operations. Coukl you tell us about how much the take is on
a single machine a day ?
Mr. Elkixs. Well, it depends on the location, sir. There are some
locations that take in as much as $100 a day.
Do you mean on one single machine ?
Senator McNamara. I mean on one single machine, on the average.
Mr. Elkixs. Well, again, it is impossible to tell. If it were a good
location, it would take in — well, I have seen them lose $20 an hour on
them.
Senator McXamara. ?!20anhour?
Mr. Elkixs. Yes.
Senator MdSTAMARA. Acoupleof hundred dollar a day?
Mr. Elkix's. I would say it would be that much.
Senator McNamara. That is better than the average on slot ma-
chines, is it not ?
Mr. Elkixs. These new pinballs are faster than slots.
Senator ]\Iuxdt. These pinballs the way you operate them out there
are not the kind that you see in a penny arcade, or in an airport or in
a union station; these are triggered up to be gambling machines as
much as a slot machine, is that correct ?
Mr. Elkixs. That is correct, only there isn't an automatic payout.
It runs the odds out.
Senator Muxdt. You pay it bj' the barkeeper instead of paying out
of the machine ?
Mr. Elkixs. Yes. You are thinking of those little five balls.
Senator Muxdt. Yes.
Mr. Elkixs. These are called 5 balls, too, but they are a different
type of 6 balls.
Senator Mundt. Are they different kinds of machines, or just op-
eratively ? Can you tell from looking at them ?
182 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. ]Sot unless you knew something- about pinballs. But
you wouldn't find an amusement device with a 10-cent shoot or a two-
bit shoot on it.
Senator Muxdt. I would not imagine the take on that kind of ma-
chine would be anywdiere near a liundred dollars a day.
Mr. Elkins. No. You can play all day for a dollar on the type
3'ou are talking about.
Senator Muxdt. Well, I was not planning to. I just wanted to
know.
Mr. Kenxedy. Mr. Elkins, was one of the fiist places that was
picketed the Mount Hood Cafe ?
Mr. Elkins. That is correct.
Mr. Kennedy. Mr. Chairman, we have the head of the Mount
Hood Cafe as a witness, if Mr. Elkins can step aside.
The Chairman. Mr. Elkins, w-ill you step aside for the present?
Call the witness.
(Members present at this point: The chairman and Senators Mc-
Namara, Mundt, and Goldwater.)
Mr, Kennedy. Mr. Horace Crouch.
The Chairman. Mr. Crouch, will you be sworn, please?
Do you solemnly swear that the evidence you shall give l>efore
this Senate select committee shall be the truth, the whole truth, and
nothing but the truth, so help you God ?
Mr. Crouch. I do.
TESTIMONY OF HORACE A. CROUCH
The Chairman. State your name, your place of residence, and your
business or occupation.
Mr. Crouch. My name is H. A. Crouch. I reside in Portland^
Oreg. My business now is the restaurant business in Portland, Oreg.
The Chairman. Portland, Oreg.?
Mr. Crouch. Yes, sir.
The Chairman, You have talked w'itli members of the staff, have
you, and understand the line of interrogation that will be inquired of?
Mr. Crouch. Yes, sir.
The Chairman. Do you waive counsel ?
Mr. Crouch, Yes, sir.
The Chairman. Proceed.
Mr. Kennedy. Mr. Crouch, I am just going to go through the same
thing that Mr. Adlerman and Mr. Calabrese have covered with you
already. Mr. Adlerman and Mr. Calabrese visited you, did they not?
Mr. Crouch. No; they did not.
;AIr. Kennedy. You never talked to them?
Mr. Crouch, No,
Mr, Kennedy, You have not talked to any member of the staff?
Mr. Crouch. Yes. Mr. Calabrese.
Mr. Kennedy. The two members of our staff ; did they come to your
home ?
Mr, Crouch. Yes.
Mr. Kennedy. Did vou have a gun behind the door at the time
they came?
Mr. Crouch. Yes; I did.
Mr, Kennedy. What would be the reason for (hat?
IMPROPER ACTIVITIES INT THE LABOR FIELD 183
Mr. Choucit. "Well, sometimes in Portland the teamsters eot pretty
rouo;h.
Mr. Kexxedt. Have yon made it a practice of ha vine; a <run near
yonr door since the time of tlie Mount Hood Cafe incident 'I
Mr, (^KOi'cii. No; I have not.
Mr. Kennedy. Yon jnst tlionoht that two i)eople were coming to
see yon and yon needed a gun?
Mr. Crouch. "Well, the way Calahrese told me that they were from
the courthonse. 1 didn't ligure the courthouse was open that time of
night. I knew I was going to be subpenaed
]\Ir. Kennedy-. Tluuik. you, Mr. Crouch. When they came out to
-ee you. did yon alsf) call the State policed
Air. Crouch. Yes; I did. I called the police before they cot there.
Mr. Kennedy. Do you have some fear of something happening?
Mr. Crouch. Well, that is something you never know.
Mr. Kennedy. Who did you think might be bothering you?
Mr. Crouch. Well, 1 don't really know. It is just that I wanted
to be safe.
Mr. Kennedy. Who did you want to be safe from. Mr. Crouch?
Mr. Crouch. Different ones that I know in the teamsters union.
Senator ^Iundt. May 1 ask at this ])oint why you felt that the team-
stei-s union might be coming to see you instead of some thug or high-
Avayman or someone else? Why did you single out the teamsters
union and say tliat '-somebody is coming that may be rough: I am
going to protect myself against the teamsters union" ^ There must be
some background on that.
Mr. Croucji. Yes. 1 appeared before the committee in Portland.
o)i the teamsters.
Senator Mindt. AVhich conniiittee? A State committee of some
kind?
Mr. (Crouch. Yes, sir: a State committee.
Senator Mundt. The State investigating connnittee?
Mr. Crouch. Yes.
Senator Mi'ndt. The grand jury?
-Mr. Crouch. Yes: the grand jury.
Senator Mundt. And you testified against the teamsters?
Mr. Crouch. And I testified. So I was kind of being plain careful.
Senator Mindt. Does the teamsters" union in your community have
a reputation of being kind of tough against people who testify against
Them (
Mr. Crouch. AVell. not lately, but years ago they did.
Mr. Kennedy. Mr. Crouch, was yom- Mount Hood Cafe picketed?
Mr. Crouch. Yes: it was.
.^^r. Kennedy. Would you tell the committee about the picketing,
why it was picketed?
y\v. (^ROi'CH. Yes. T was in the kitchen one morning working,
iind doing my cooking there, and ^Iv. Fi'ank Mallov walked in.
Mr. Kennedy. V»'ho is Mr. Frank Malloy?
Mr. Crot'Ch. He belongs to the teamsters some wav or another.
He asked me whose ))iachines I had and T told him Stan Terry. He
said, "Well,"' he says, ''Crouch, von better take those machines out,
because m a few days you might be picketed." I said, "They can't
picket me. I belong to the culinary workers."
Mr. Kennedy. You said vou were a member of the union ?
184 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Crouch. Yes.
Mr. Kennedy. T^Tiat union were you a member of ?
Mr. Crouch. Culinary workers. It is a restaurant union.
Mr. Kennedy. You told that to Mr. Malloy ?
Mr. Crouch. Yes.
Mr. Kennedy. What did he say ?
Mr. Crouch. He said "You will find out." So 2 or 3 days from
then I came to work and he had the pickets in front of me, in front
of my place.
Mr. Kennedy. You had pickets from the teamsters' union outside
your Mount Hood Cafe?
Mr. Crouch. Yes.
Mr. Kennedy. 'VYliat happened?
Mr. Crouch. I asked Malloy, "You can't do this. What is the big
idea?" I told him, "I belong to the restaurant union. Why picket
me r
He said "We are not picketing you. We are picketing Stan Terry's
machines. You take Stan Terry's machines out and we will pull the
pickets."
Senator Mundt. Did he suggest whose machines you might put in?
Mr. Crouch. A few days after I did take them out, one of the Acme
men left his card there, and I said, "Are you union?" And he says,
"Yes, we are. You will not be bothered."
So I took them in.
Senator Mundt. Mr, Crouch, these pickets out in front of your
place, were they there for the purpose of keeping patrons from coming
in or keeping deliveries from coming in ?
Mr. Crouch. Both. All my customers are railroad union men,,
taxicab drivers union, and they told them not to come in my place.
They couldn't cross the picket line.
Senator Mundt. How about the deliveries ? Did they cease coming
in, too?
Mr. Crouch. Yes. They did. They stopped.
Senator Mundt. You could not get beer, food, and bread and stuff
that you needed, so that you were out of business ?
Mr. Crouch. I went and got it myself.
Senator Mundt. You went and got it yourself?
Mr. Crouch. Yes.
Senator Mundt. But when the union men did not come across the
line, you were practically closed up.
Mr. Crouch. That is right.
Senator Mundt. So you took the machines out ?
Mr. Crouch. Yes, sir.
Senator Mundt. After that, the Acme man came and said ''This is
the other side of the coin. You can put these machines in. These
are unionized." The pickets would go away and you are back- in
business?
Mr. (Crouch. Yes, sir.
Mr. Kennedy. Did you ask Stan Terry to get in the union so that
the Dickets would go away?
Mr. Crouch. Yes, I did. I asked Stan Terry, I said "Why don't
you join the union?" And he said "They won't let me."
Mr. Kennedy. They won't let him in the union I
IMPROPER ACTIVITIES IN THE LABOR FIELD 185
Mr. Crouch. Yes. I said "How Come?" And he saidthe head guy
was ill Seattle and he couldn't get in touch with him.
Mr. Kennedy. He said the head guy was in Seattle ?
]Mr. Crouch. Yes.
Mr. Kennedy. Was there any violence, or did anybody get into any
kind of an argument?
^Ir. Crouch. The first morning I came down, struggling in business
there in Portland for awhile, there was Frank Malloy. I asked him
to pull the pickets, and we had a few words and it almost came to u
fight. AVe called the police and the police told me to go inside rather
than being sent down to the police station.
Mr. Kennedy. Did you get into a real fight ?
Mr. Crouch. Well, "it was not a real tight. I started it myself. I
was mad.
Mr. Kennedy, Did you punch Mr. Malloy?
Mr. Crouch. Xo.
Mr. Kennedy. You did not get into any kind of a fist fight?
Mr. Crouch. No.
Mr. Kennedy. Did you try to throw a monkeywrench at hhii?
Mr. Crouch. Well, I carried one in my car.
Yes, I did. I couldn't get coffee, I couldn't get bread, I couldn't
get meat deliveries. I called these outfits up. I have been in Portland
30 years or more in business. They said, "Well, you meet me up the
street and we will transfer the food into your car and you can haul it
yourself." The coffee company I did, and Frank Malloy and another
fellow followed me in the car, and got out and told the coffee man to
take the coffee out of my car and ])ut it back in his truck. I pulled out
a monkeywrench and I said, "Nobody touches this coffee. The first
one that does will get this over his head. You better get in that car,"
1 said, "and drive away or this wrench vrill go through your wind-
shield." He got in and drove off.
Mr. Kennedy. Did ^Ir. Terry in his conversations with you say
that he thought it would be i)Ossible to get into the union ?
Mr. Crouch. He thought the first day or so he would be able to get
in. I said, "If they don't, Stan Terry, I have to pull these machines
out, because my business is way down."
Mr. Kennedy. What did he say he had to do in order to get into the
union?
Mr. CivOiXH. He was trying to get hold of this head fellow. I don't
know wlio he was.
Mr. Kennedy. The head man?
Mr. Crouch. Yes.
Mr. Kennfjdy. Did he say he thought if he could get in touch with
the union, he thought he could get into the union ?
Mr. Crouch. Yes, he did.
Senator Mundt. Who did you say was the headman of the union?
Mr. Crouch. The onh^ one I knew of was Frank Malloy.
Senator Mundt. Who did Mr. Terry say he had to get in touch with
up in Seattle ?
Mr. Crouch. I don't remember that.
Senator Mundt. You do not remember that?
Mr. Crouch. No.
Mr. Kennedy. Did you ultimately pull Mr. Terry's machines out
of your restaurant ?
186 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Crouch. Yes, I did.
Mr. Kennedy. In the meantime, with the pickets out front, your
business was ruined?
]Mr. Crouch, Yes.
Mr. Kennedy. You could not oj)erate any more?
Mr. Crouch. No.
Mr. Kennedy. There were no patrons coming in any more?
Mr. Crouch. Xo.
I Mr. Kennedy. You would go bankrupt if you did not pull them
out ?
Mr. Crouch. That is what would happen.
Mr. Kennedy. You pulled them out?
Mr. Crouch. Yes, I did.
Mr. Kennedy. Did you put other machines in ?
Mr. Crouch. About '^ months later, Stan said he was in the union,
so I put them back in.
Mr. Kennedy. But you did not take Acme's machines ?
Mr. Crouch. No, I didn't.
Senator Mitndt. Why not?
Mr. Crouch. What?"
Senator Mundt. Why not?
Mr. Crouch. Well, I had known Stan for a good many years, an<l
they had always given us good service and this and that. The union
was for Acme and I wasn't, they had caused me trouble, so
Senator Mundt. You were sort of waiting to see if Mr. Terry could
get unionized so vou could go back in business with Mr. Terry, right?
Mr. Crouch. Yes, sir.
The Chairman. Are there any further questions ^
In other words, you were compelled to take the other machines or
go out of business ?
Mr. Crouch. That is right.
The Chairman. And under threat, not only a threat but actual
picketing of your place, to destroy your business if you did not do it?
Mr. Crouch. Yes. sir.
Senator McNamara. That raises a question in my mind. Could
you have operated your place without machines? Did they insist
you have machines?
Mr. Crouch. Yes. If the pickets would have left, my business
would have carried right on.
Senator McNamara. Then if you took the machines out, you did not
have to replace them with other machines, you could operate without
machines?
Mr. (Crouch. Yes, I could.
Senator Mi ndt. T just want to tinisli your business history now.
The ]:)ickets were before your place for about how long?
INIr. Croi^ch. About 4 days. The fourth day tliey took them out.
Senator Mi'xdt. When you took the machines out, then the })icket3
went away.
Mr. Crouch, "^'es.
Senator Mundt, And you opened up about 3 mouths later with Mv.
Terry's machines?
Mr. Crouch. Yes.
Senator Mundt. And by tliat time, Mr. Terry had been in the
union, had joined the union ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 187
Mr. Ceoucit, Yes.
Senator Mundt. So tlie pickets did not disturb you any further?
Mr. Crouch. No.
The Chairman. Thank you very much.
(At this point, Senator McNamara withdrew from the hearing
room.)
The Chairman. Mr. Frank Malloy, come forward, please.
(Members present at this point : The chairman. Senators Mundt and
Gold water.)
The Chairman. You will be sworn, Mr. Malloy.
You do solemnly swear that the evidence you sliall give before this
Senate Select Committee shall be the truth, the whole truth and noth-
ing but the truth, so help you God ?
Mr. Malloy. I do.
TESTIMONY OF FRANK MALLOY, ACCOMPANIED BY COUNSEL,
CLIFFORD D. O'BRIEN
Th3 Chairman. State j'our name, place of residence, and your busi-
ness or occupation.
Mr. jNIallov. ^My name is Frank Malloy. I live at 2632 Southeast
Terrace, in Portland, Oreg. I am a business agent for local 223,
teamsters.
The Chairman. How long have you been such ?
Mr. Malloy. Well, I am with local 223 for about 4 years, or 3i^
years.
The Chairman. You have counsel present, have you ?
]\Ir. Maixoy. Yes, sir.
The Chairman. Counsel, you will please identify yourself for the
record.
Mr. O'Brien. My name is Clifford D. O'Brien, I live in Portland,
Oreg., and my office is in the American Bank Building in that city.
Mr. Chairman. Thank you, sir.
You are, of course, familiar with the rules of the committee?
J^Ir. O'Brien. I have been advised of the rules, Mr. Chairman.
The (>hairman. Proceed, Mr. Kennedy.
Mr. Kennedy. You have been in the teamsters union, Mr. Malloy,
how long?
Mr. ]\rALiX)Y. Since 1932.
IMr. Kennedy. And you have been in Portland, Oreg., for how long?
Mr. Malloy. Forty-four years.
Mr. Kennedy. So you have been there with the teamsters since
1932?
Mr. Malloy. As a member.
Mr. Kennedy. As a member of the teamsters union.
Were you involved in any of the difficulties that Mr. Earl mentioned
earlier, that is the difficulties that the teamsters had in Portland dur-
ing the 1935, 1936 and 1947, the arson, the dynamite and the acid
throwing?
Mr. jNIalloy. I decline to answer that question.
(The Avitness conferred with his counsel.)
Mr. Malloy. It might tend to incriminate me on the two indict-
ments I am faced with in the State of Oregon.
89330— 57— pt. 1 13
188 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. To answer the question as to whether you were
involved in any of the dynamitinc:, the acid throwing, in Portland
during the 1936-37 period would tend to incriminate you?
(The witness conferred with his counsel.)
Mr. M ALLOY. Yes.
Senator Mundt. Mr. Malloy, you dropped your voice at the end
of the sentence. Did you say you were indicted in the State of Oregon
or you might be indicted?
Mr. Malloy. I have two indictments.
Senator Mundt. You have two indictments presently pending
against you?
]\Ir. Malloy. Yes, sir.
INIr. Kennedy. Let me ask you this : Could you tell me who ordered
the picketing of the Mount Hood Cafe ?
Mr. INIalloy. I decline to answer for the same reason.
Mr. Kennedy. Mr. Chairman, it is just a question of who ordered
the picketing at an institution.
The Chairman. You heard Mr. Crouch testify preceding you, did
you?
(The witness conferred with his counsel.)
Mr. Malloy. Yes.
The Chairman. Just one moment.
The Chair is not quite certain, but I think I observe some improper
coaching on the part of counsel.
Mr. O'Brien. Mr. Chairman, I have only advised Mr. Malloy
whether or not to decline to answer the questions.
The Chairman. You may advise him as to his legal rights.
Mr. O'Brien. That is all I am purporting to do.
The Chairman. If he answers, he will answer upon his own judg-
ment, and not upon the suggested answers.
You heard Mr. Crouch testify ?
Mr. Malloy. Yes, sir.
The Chairman. You heard him relate the circumstance under
which his business was picketed?
Mr. Malloy. I decline to answer.
The Chairman. I order you to answer that. Did you hear him
testify to the circumstances under which his business was picketed?
Mr. Malloy. Yes, sir.
The Chairman. Did you order his business picketed?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer the question.
The Chairman. I order and direct you to answer the question.
Mr. Malloy. I decline to answer the question. It might incrimi-
nate me on the two indictments I am faced with in Oregon now.
The Chairman. It might incriminate you?
Mr. Malloy. It might incriminate me. Pardon me.
The Chairman. Do you wish to deny any of the testimony he gave
here against you?
(The witness conferred with his counsel.)
Mr. Malloy. I decline.
The Chairman. You decline what?
Mr. Malloy. To answer that.
The Chairman. I simply asked you whether you wish to deny any
of it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 189
Mr. Malloy. I decline to answer.
The Chairman. On what grounds?
Mr. Malloy. That it might incriminate me on the two indictments
I am faced with in Oregon.
The Chairman. Do you think denying an accusation would in-
criminate you?
Senator Mundt. Mr. Chairman, under the rules of. our committee,
the counsel may be consulted by the witness. He is not supposed to
coach him all the way through, which this counsel persists in doing.
1 suggest that counsel comply with the rules of the committee.
Mr. O'Brien. Senator Mundt, I have not coached the witness.
Senator Mundt. You are to talk to him only when he asks you for
advice, sir, and not volunteer.
Mr. O'Brien. Very well.
The Chairman. Let us proceed.
The Chair wants to be very courteous, very generous and very lib-
eral, and any other term you may use along that line, with respect
to a witness testifying, with his counsel, but the Chair will not tolerate
coaching the witness, if he detects that is being done. Counsel is here
as a courtesy from the committee, and the committee's rules will be
observed.
I ask you if you wish to deny, or do you want to let the record stand
here, the sworn testimony against you, as to your activities and your
actions as have been testified to here regarding Mr. Couch's place of
business?
Do you want to deny it or do you want to let the record stay as it
is, an accusation against you here under oath before the public, and this
information going all over the country, everybody knowing it, and
you sitting here having the opportunity to deny it, if it is not true?
Do you want to leave it that way and refuse to answer?
(The witness conferred witli his counsel.)
Mr. ]\Lalloy. I think I will decline to answer the question. The
question might incriminate myself.
The Chairman. It might incriminate yourself?
Mr. Malloy. Yes.
The Chairman. Do you honestly believe that if you told the truth
and had that question as to whether you did have his place picketed
or not, that an honest answer, a truthful answer, would tend to in-
criminate you? Do you honestly believe that?
(The witness conferred with his counsel.)
Mr. Malloy. I do.
The Chairman. You are the best judge of it.
Are there any other questions?
Mr. Kennedy. I would like to find out who has the authority in your
union to put pickets on places, to order pickets?
(The witness conferred with his counsel.)
Mr. Malloy. Well, the secretary of the union.
Mr. Kennedy. What is his name?
Mr. Malloy. Mr. Hildreth.
Mr. Kennedy. Did he order the pickets at the Mount Hood Cafe?
(The witness conferred with his counsel.)
Mr. JVIalloy. I decline to answer that question.
190 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Wait a moment. You are ordered and directed
to answer that question. There could not be any possible incrimi-
nation m saying whether he ordered it done or not.
Mr. O'Brien. Mr. Chairman, may I say something briefly?
The Chairman. You may counsel your client as to his legal rights.
Mr. O'Brien. I would like to apprise the committee as to the sub-
ject matter of these indictments.
The Chairman. You may advise the committee of the nature of the
indictments.
Mr. O'Brien. Mr. Chairman, Mr. Malloy stands charged with ex-
tortion arising out of this picketing of the Mount Hood Cafe, under
a State statute, under which, in my opinion, if interstate commerce
were involved, it would likewise make the basis for a Federal indict-
ment.
The Chairman. So he does not want to deny it, then, notwithstand-
ing he is indicted.
Senator Mundt. The two indictments, Mr. Counsel, are they both
on the same subject?
Mr. O'Brien. I bes: your pardon?
Senator Mundt. "V^Hiat is the other indictment?
Mr. O'Brien. The other is a conspiracy to extort, by picketing cer-
tain other establishments in Portland. In that case, a Federal judge
did find a violation of interstate commerce, found a violation of the
Sherman Antitrust Act.
Mr. Kennedy. All I want to know is if Mr. Lloyd Hildreth, who
has the authority to order the pickets, ordered the pickets put on ?
Mr. Malloy. I decline to answer.
Senator INIundt. Mr. Malloy, since you are obviously threatened
with this type of court prosecution, if you tell the whole wide world
"Yes, the secretary ordered the pickets", you are establishing a defense
for yourself. If you decline to answer, you are certainly casting a
new shadow of doubt against your own position. This is a chance for
you, sir.
Could you speak up?
Mr. Malloy. I still decline to answer the question.
Mr. Kennedy. Is not the reason that you decline the fact that Mr.
Clyde Crosby ordered the pickets for the Mount Hood Cafe?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. Have you been instructed by the teamsters union to
take the fifth amendment up here in order to protect Mr. Clyde
Crosby?
(The witness conferred with his counsel.)
Mr. Malloy. No.
Mr. Kennedy, You have not.
Is your attorney the same attorney for Mr. Clyde Crosby?
(The witness conferred with his counsel.)
Mr. Malloy. Yes.
Mr Kennedy. Did Mr. CI vde Crosbv order the picJiets at the Mount
Hood Cafe?
Mr. Malloy. I decline to answer that question.
Senator Mundt, Do you know Mr. Crosby?
Mr. Malloy. Yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 191
Senator Mundt. For how long?
Mr. Malloy. Five or six years.
Senator Mfndt. He is an official of the teamsters nnion; is he not?
Mr. Malloy. Yes, sir.
Senator Mundt. Does he have a higher or lower official rank in the
teamsters union than you ?
Mr. Malloy. He is our international man in the State of Oregon.
Senator Mundt. Is that a more important job or a less important
job than 3''ours?
Mr. ^Malloy. Yes, sir.
Senator Mundt. That is an important position ; is it not?
Mr. Malloy. Yes, sir.
Senator Mundt. Do you know Mr. Tom Maloney ?
(The witness conferred witli his counsel.)
Mr. Malloy. I decline to answer the question.
Senator Mundt. Did you know Mr. John Sweeney ?
Mr. Malloy. Yes.
Senator Mundt. In what capacity did you know Mr. John
Sweeney ?
Mr. Malloy. He was the international representative in the State
of Oregon.
Senator Mundt. Did he have the position formerly that Mr. Crosby
has now ?
Mr. Malloy. Yes, sir.
Senator Mundt. Do you know Mr. Frank Brewster?
Mr. Malloy. Yes, sir.
Senator Mundt. In what capacity?
Mr. Malloy. Well, as a vice president and head of the Western
Conference of Teamsters of the 11 Western States.
Senator Mundt. For how long have you known him ?
Mr. ]Malloy. Twenty years.
Senator Mundt. Did you know him in earlier capacities in the
teamsters union before he became vice president?
]Mr. Malloy. Yes, sir.
Senator Mundt. In what capacity ?
Mr. Malloy. Well, he was secretary to local 174 in Seattle, Wash.
Senator Mundt. At which time you were business manager?
Mr. Malloy. Yes. I was a business agent at the time ; yes, sir.
Senator Mundt. You were a business agent at the time he was
secretary ?
Mr. Malloy. Yes, sir.
Senator Mundt. And you have known him, then, as he has moved
up to his present position ?
Mr. Mali>oy. Yes, sir.
Senator Mundt. Thank you.
The Chairman. Did you say you know Tom Maloney ?
(The witness conferred with liis counsel.)
Mr. Malloy. I decline to answer that question.
The Chairman. Do you know Joe McLaughlin ?
Mr. Malloy. I decline to answer that question.
The Chairman. You said you knew Mr. Crosby, I believe, Clyde
Crosby ?
Mr. Malloy. Yes, sir.
192 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. You do know him. Have you ever had any business
transactions with Tom Maloney?
Mr. Malloy. I decline to answer that question.
The Chairman. Did you ever have any business transactions with
Joe McLau«:hlin?
Mr. Malloy. I decline to answer that question.
i-'The Chairman. Did you ever have any business transactions with
Clyde Crosby?
(The witness conferred with his counsel.)
Mr. Malloy. Yes.
The Chairman. Wliat was the nature of them ?
Mr. Malloy. Well, he is the international officer in the State of
Oregon.
The Chairman. You had relations with him, business relations,
in connection with your union membership and your position as a
business manager in his official position as head of the organization,
or whatever position he held?
Mr. Malloy. Yes.
The Chairman. You had those business transactions with him?
Mr, Malloy. Yes, sir.
The Chairman. In other words, union business ?
Mr. Malloy. Right.
The Chairman. Did you have any other business transactions with
him outside of the union?
Mr. Malloy. No, sir.
The Chairman. You never had any conversations with him or
business transactions regarding pinball machines?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
The CHAiR]y[AN. You have answered that you did not have any
other, so I am going to order and direct you to answer this question.
Mr. Malloy. I decline to answer that question.
The Chairman. You are ordered and directed to answer it. Did
you have any conversations with him or any business transactions
with him regarding pinball machines?
Mr. Malloy. I decline to answer that question.
The Chairman. You are ordered and directed to answer it.
(The witness conferred with his counsel.)
Mr. Malloy. I still respectfully decline that question.
The Chairman. Did you have any conversations with him regard-
ing punchboards?
Mr. Malloy. I decline to answer that question.
The Chairman. You had answered that you had no other business
connections with him, and I am asking you, to refresh your memory,
and see if you will tell the truth about it, if you did not have conversa-
tions with him about pinball machines and also about punchboards.
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that.
The Chairman. And did you not have an understandin": with him
and also with Tom Maloney and Joe McLaughlin regarding the op-
eration of pinball machines in the citv of Portland?
Mr. Malloy. I decline to answer that question.
The Chairman. And did you not, as a strong-arm man, business
manager, of the teamsters union, go out and picket places in order
niPROPER ACTIVITIES IN THE LABOR FIELD 193
to try to force them to take the machines in which Joe McLaughlin,
Tom Maloney, and Clyde Crosby were interested ?
Mr. Malloy. I decline to answer that question.
The Chairman. You do not want to tell the truth about it, do you?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
Senator Mundt. Mr. Malloy, you answered an earlier question on
the part of the chairman when he asked you had you had any other
business conversations with Mr. Crosby except those dealinn; with
union affairs, and you gave a categorical denial and said, "No." In
view of the fact that that would subject you to a perjury citation in
the event it develops that you have had these other conversations
about which you now take the fifth amendment, do you want to change
your previous testimony when you gave that categorical denial to the
first question ?
(The witness conferred with his counsel.)
Mr. Malloy. No ; I don't want to change it.
Senator Mundt. You do not want to change it.
Senator Goldwater. Mr. Malloy, did you ever know a Frank
Harper ?
(The witness conferred with his counsel.)
Mr. Malloy. No.
Mr. Kennedy. Did you have a monkey wrench thrown at you at
the Mount Hood Cafe?"
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. Did you participate in the campaign of Mr. William
Langley ?
(The witness conferred with his counsel.)
Mr. Malloy. Yes.
Mr. Kennedy. What services did you perform for William
Langley ?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
The Chairman. You are ordered and directed to answer the ques-
tion.
(The witness conferred with his counsel.)
Mr. Malloy. Well, I decline to answer that question.
Mr. Kennedy. What has that got to do with your indictment on
the Mount Hood Cafe?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. Did you know that from the Acme Amusement Co.
Mr. William Langley was to receive some of the money that the Acme
Amusement Co. made?
Mr. IMalloy. I decline to answer that question.
Mr. Kennedy. Did you know that for a fact ?
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. Did vou receive any moneys from Tom Maloney
in connection wnth the William Langley compaign?
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. Have you ever been to Mr. William Langley's home?
Mr. M\LLOY. I decline to answer that question.
Senator Mundt. Did you, yourself, make a financial contribution
to Mr. Langley's campaign?
194 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. IMalloy. I decline to answer that question.
Senator Muxdt. Would not that have to be a matter of record under
your State law, your city law ?
Mr. O'Brien. Senator Mundt, I can tell you that it probably would
be. I don't know whether the witness knows the answer or not.
Senator Mundt. You mean you do not know whether he knows
whether he made a contribution or not ?
Mr. O'Brien. No; I don't know whether he knows the question of
law.
Senator Mundt. It would seem to me that it would be, and con-
sequently I do not think the witness can hide behind the fifth amend-
ment, Mr. Chairman, without being in contempt of Congress, if we
are asking a question which is a matter of State record out there in
the secretary of state's office.
The Chairman. In my opinion, the witness is already in contempt.
Senator Mundt. I will repeat the question, sir. Did you contribute
any money, yourself, to Mr. Langley's campaign?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
Senator Mundt. I agree with the chairman that this witness is
clearly in contempt of Congress when he refuses to answer questions
of that type and makes a capricious use of the fifth amendment. He
is clearly in contempt.
The Chairman. Are there any further questions?
Mr. Kennedy. Just to straigliten the record out, Mr. Elkins testified
that he gave $200 to Mr. Tom Maloney for you. Did j'oii receive that
money ?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. He also stated that he gave another $200 to Mr. Tom
Maloney for your wife.
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. And that you had attempted to make arrangements
with Mr. William Langley to set up a joint of your own in Portland.
Is that true ?
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. Did you know that Mr. William Langley was taking
a part or having a part of a joint that was operating in Portland,
Oreg., in 1955?
( The witness conferred with his counsel. )
Mr. Malloy. I decline to answer.
The Chairman. Are there any further questions ?
Senator Goldwater. Mr. Chairman?
The Chairman. Senator Goldwater.
Senator Goldwater. Mr. Malloy, Avere you active in the campaign
against Mr. Earl in the last city election ?
(The witness conferred with his counsel.)
Mr. Malloy. Yes, sir.
Senator Goldwater. Did you represent your union as being against
Mr. Earl's candidacy ?
(The witness conferred with his counsel.)
Mr. Malloy. Yes.
IMPROPER ACTIVITIES IX THE LABOR FIELD 195
Senator Gold\vaii;r. Did you ask your membership if you would
be right in expressing their' views as being against Mr. Earl's can-
didnc}'?
Mr." Malloy. The membership ?
Senator Goldwater. Yes.
Mr. Maixoy. No, sir.
Senator Goldwater. You just took it upon yourself to say that
your local was against Mr. Earl?
Mr. :\L\LLoi. "Well, I didn't campaign for Earl. I campaigned
for his opponent.
Senator Goldwater. Tlitit is against him. Did you use union
money in that campaign ?
Mr. JVL^LLOY. No, sir.
Senator Goldwater. You did not use any of the funds of the union
as you campaigned for his opponent?
Mr. Malloy. No, sir.
Senator Goldwater. Yon financed it yourself ?
Mr. Malloy. The campaigning I did, I did myself; yes.
Senator Goldwater. But you did it in the name of
Mr. Malloy. I didn't spend no money on the campaign.
Senator Goldwater, But you did it in the name of your local ?
Mr. Malloy. No, sir.
Senator Goldwater. Then you did not represent your local as being
against Mr. Earl or being for the other candidate ?
Mr. Malloy. No, sir; I didn't.
Senator Goldwater. You were only speaking for yourself?
Mr. Malloy. Speaking for myself, yes, sir.
Senator Goldwater. You said before, though, you were speaking
for your union.
Mr. Mali^oy. I didn't mean that. I am sorry.
Senator Goldw^ater. That is all, Mr. Chairman.
The CiiAiRMAX. Do you still refuse to answer questions regarding
your business relations with Clyde Crosby, aside from your union
business?
Mr. Malloy. Yes, sir. I decline.
The Chairman. Notwithstanding your being ordered and directed
to do so, you still refuse ?
Mr. Malloy. I do.
Mr. Kennedy. On the cami^aign of Mr. William Langley versus
Mr. McCourt, why did the teamsters change from Mr. McCourt to
Mr. William Langley? "VYliy did they change their support?
(The v\'itness conferred with his counsel.)
Mr. Malloy. Well, I actually don't know.
Mr. Kennedy. Did you ever attend a meeting when it was decided
that vou would support Mr. William Langlev rather than Mr.
McCourt ?
(The witness conferred with his counsel.)
Mr. Malloy. Well, not actually to any meeting where they were
going to give the full support to Langley as candidate.
Mr. Kennedy. You what ?
Mr. Malloy. I never attended no meetings; no. I attended a lot
of meetings during the campaign; yes.
Mr. Kennedy. How did you know that the teamsters were going to
support Langley rather than McCourt?
196 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Malloy. Well, it was in tlie primary that I was told
Mr. Kennedy. Wlio told you?
Mr. Malloy (continuing). At our joint council
Mr. Kennedy. Who told you? Who specifically told you?
Mr. Malloy. John Sweeney.
Mr. Kennedy. He said that ?
Mr. Malloy. Yes, sir.
Mr. Kennedy. That you were going to support William Langley ?
Mr. Malloy. Yes, sir.
Mr. Kennedy. Did your paper then come out for William Langley,
your newspaper?
Mr. Malloy. That is right.
Mr. Kennedy. It came out immediately after hearing from John
Sweeney ?
Mr. Malloy. Well, shortly after. I don't know just what dates it
was.
Mr. ICennedy. Mr. John Sweeney, he was up in Seattle at that
time ?
Mr. Malloy. That is right.
Mr. Kennedy. And he came down and told you that ?
Mr. Malloy. Yes. He was in town. I just don't know what date
it was.
Mr. Kennedy. So the decision as to who was going to be supported
in the district attorney race in Portland was decided by Mr. John
Sweeney up in Seattle ; is that right ?
Mr. Malloy. Well, now, I don't know. He just told me that as an
individual.
Mr. Kennedy. Did the membership have a meeting and decide who
was the better candidate between Langley and McCourt?
Mr. Malloy. Not to my knowledge ; no.
Mr. Kennedy. It was just Mr. John Sweeney. Did he tell you that
he discussed this with Frank Brewster?
Mr. Malloy. No.
Mr. Kennedy. He just said "This is what we are going to do"?
Mr. Malloy. He just told me that we was going to support Bill
Langley.
Mr. Kennedy. So did you take an active part, then, supporting Bill
Langley ?
Mr. Malloy. That is right.
Mr. Kennedy. Did you distribute signs?
Mr. Malloy. I did.
Mr. Kennedy. Did you meet with Mr. Elkins on that ?
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that question.
Mr. Kennedy. That does not have anything to do with your indict-
ment. That has nothing to do with the Mount Hood Cafe, your rela-
tionship with Mr. Elkins and Mr. Langley. Tell us about that.
(The witness conferred with his counsel.)
Mr. Malloy. I decline to answer that.
Mr. Kennedy. What has that got to do with the statement that you
made that the reason you do not want to answer these questions is be-
cause you are under indictment? Tell us about the campaign, and the
support of the teamsters of Mr. William Langley.
Mr. Malloy. I decline to answer that question on Elkins.
IMPROPER ACTIVITIES IN THE LABOR FIELD 197
Mr. Kennedy. "^Vhat about Mr. Langley ? Do you decline on Mr.
Langley ? Will you answer those questions now ?
(The witness conferred with his counsel.)
Mr. Malloy. I have to decline on the same instance I already
declined.
The Chairman. Any further questions ?
The Chair will instruct the chief counsel to have the staff imme-
diately prepare the resolution of contempt against this witness.
You will stand by. You are still under subpena. Your further tes-
timony may be desired.
The committee will stand in recess until 3 o'clock this afternoon.
(Members present at the taking of the recess : The Chairman, Sena-
tors Mundt and Gold water.)
(Whereupon, at 12:07 p. m., the committee recessed, to reconvene
at 3 p. m., the same day.)
AFTERNOON SESSION — 3 P. M.
(Members present at the convening of the afternoon session: The
chairman, Senators McNamara and Goldwater.)
The Chairman. The committee will come to order.
Mr. Lloyd Hildreth, come forward, please.
The Chairman. Mr. Hildreth, will you be sworn, please ?
Do you solemnly swear that the evidence you shall give before this
select Senate committee shall be the truth, the whole truth, and noth-
ing but the truth, so help you God ?
Mr. Hildreth. I do.
TESTIMONY OF LLOYD HILDRETH, ACCOMPANIED BY COUNSEL,
CLIFFORD D. O'BRIEN
The Chairman. State your name, your place of residence and your
business or occupation, please ?
Mr. Hildreth. My name is Lloyd Hildreth. I reside in Portland,
Oreg. I am the secretary of teamsters local 223.
The Chairman. You have your counsel present ?
Mr. Hildreth. Yes, sir.
The Chairman. Counsel, I believe you identified yourself for the
record this morning. State your name again.
Mr. O'Brien. Clifford D. O'Brien. I am the same Mr. O'Brien who
represented Mr. Malloy.
The Chairman. Proceed.
Mr. Kennedy. Mr. Hildreth, how long have you been in the team-
sters ?
Mr. Hildreth. I became a member of the teamsters union about,
I believe, 1936 or 1937.
Mr. Kennedy. How long have you been an officer of the team-
sters ?
Mr. Hildreth. I went to work as an officer in 1941.
Mr. Kennedy. Where did you come from originally? Where did
you come from?
Mr. Hildreth. From my home ?
Mr. Kennedy. Always Portland?
Mr. Hildreth. I am a native Oregonian ; yes, sir.
198 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. '^Vllat was the office that you took in 1941 ?
Mr. HiLDRETH. I was an organizer for the warehouse local No. 206'.
Mr. Kennedy. How long have you held your present position?
Mr. HiLDRETH. Since February 1954.
(At this point, Senator Mundt entered the hearing room.)
Mr. Kennedy. In that position that you hold, are you the one that
is responsible for putting pickets on places ?
Mr. HiLDRETH. I probably would be, yes, sir, in most cases.
Mr. Kennedy. Mr. Hildreth, you were in the room this morning
when we discussed the Mount Hood Cafe incident.
Mr. HiLDRETH. Yes.
Mr. Kennedy. Did you order the pickets put on the Mount Hood
Cafe?
Mr. HiLDRETH. No, sir.
Mr. Kennedy. If that is ordinarily your responsibility, why did
you not do that this time? Why had you not been the one that
ordered the pickets on this occasion ?
Mr. Hildreth. Well, the only thing I can say is that Mr. Crosby
is the one who ordered the pickets over there.
Mr. Kennedy. He is the one that made the decision that there
should be pickets ?
Mr, HiLDRETH. Yes, sir.
Mr. Kennedy. He is your superior officer ; is he not ?
Mr. HiLDRETH. He is the international representative in that area.
Mr. Kennedy. Is it not rather unusual for the international organ-
izer to step in and order pickets?
Mr. HiLDRETH. It is kind of an unusual situation. I don't know.
He has, I would say, the authority.
Mr. Kennedy. Had he done it on any other occasions?
(At this point, Senator Kennedy entered the hearing room.)
Mr. HiLDRETTi. I don't remember any other occasion ; no, sir.
Mr. Kennedy. Do you know what the circumstances were that
brought about his ordering the pickets at the Mount Hood Cafe and
these other places ?
Mr. HiLDRETH. No, sir, I don't.
Mr. Kennedy. He never explained that to you ?
Mr. Hildreth. Not that I recall.
Mr. Kennedy. Did he ever mention to you anything about the Acme
Amusement Co?
Mr. Hildreth. No, sir.
Ml". Kennedy. He did not?
Mr. Hildreth. No, sir.
Mr. Kennedy. Were you surprised to hear that pickets had been
ordered at these places, these taverns?
Mr. Hildreth. Well, I didn't know anything about it, what caused
it or anything of that kind.
Mr. Kennedy. Did you ask any questions as to who had ordered
them, Avliy they had been put there?
Mr. Hildreth. I don't remember discussing it with him.
Mr. Kennedy. You cannot remember too much about this incident
except the fact that you did not put them there; is that right?
Mr. Hildreth. That is correct.
Mr. Kennedy. I would like to say, Mr. Chairman, that we have, in
our investigation, received no derogatory information on Mr. Hil-
IMPROPER ACTmTIES IN THE LABOR FIELD 199
dretli, and his name has not come into the hearing except as a possible
■witness that could tell us about the ordering of the pickets.
The CiiAiRMAx. ]Mr. Hildreth, you say you did not order the
pickets ?
Mv. Hildreth. No, sir.
The Chairman. You did not order the picketing?
Mr. Htij)reth, No, sir.
The Chairman. Is that part of the duties and responsibilities you
have as secretary of that local '^
Mr. Hildreth. Well, it would normally be, I think.
The Chairman. Do you know of any other occasion where an inter-
national representative has come down and taken charge without con-
sulting with the local officials of the union ?
Mr. Hildreth. I can't — I wouldn't recall, really, no.
The Chairman. Then you would say this action was most unusual,
would you not ?
Mr. Hildreth. Well, I would say that it is not the usual thing.
The Chairman. If it is not usual, it is unusual ?
]Mr. Hildreth. That is correct.
The Chairman. You never talked to Mr. Crosby about it before
the pickets were ordered ?
Mr. Hildrj:th. No, I don't recall discussing it.
The Chairman. In other words, you had no notice of it at all ?
Mr. Hildreth. Not that I recall, no.
The Chair]vian. And they were not ordered by a vote of the member-
ship of the union?
Mr. Hildreth. Not to my knowledge.
The Chairman. And they were not ordered by any other officer of
the local, so far as you know?
Mr. Hildreth. Not to my knowledge.
The Chairman. You would be the one. If the local was ordering
it done or directing it to be done, that order and direction would come
througli you; would it not?
Mr, Hildreth. Tliat would be, I think, the right thing.
The Chairman. That would be the right way to do it. AVhen you
found out it had been done by an international officer, did you inquire
to ascertain the reason why these places were being picketed '?
Mr. Hildreth. Well, I don't recall any direct conversation about it,
but I understood it was for organizational purposes.
The Chairman. For organizational purposes?
Mr. PIildreth. Yes, sir.
The Chairman. You did not know it was to force them to take a
certain kind of slot machine or pinball machine?
Mr. Hildreth. Not — no.
The Chairman. Not at that time?
Mr. Hildreth. No, sir. I don't know anything of that kind, no, sir.
The Chairman. You have learned of it since?
Mr. Hildrf.i'ji. Well, I guess that is Avhat these hearings are about.
The Chairman. You guess that is what it is all about. Well, it is
a strange thing, is it not, to have a place picketed without the union,
the local having jurisdiction over that area, being consulted about it
and knowing about it, and ordering it done ?
Mr, Hildreth. I would say it was not the usual course.
The Chairman. Are there any other questions ?
200 IIVIPROPER ACTIVITIES IN THE LABOR FIELD
Senator McNamara, Did I understand from the records that you are
secretary of the local union?
Mr. HiLDRETH. Yes, sir.
Senator McNamaea. Are you also business manager ?
Mr. HiLDRETH. Yes.
Senator McNamara. From my experience with unions, ordinarily
the business manager has the authority, or usually assumes the respon-
sibility and authority, for picketing by unions, and not usually the
secretary, unless he is a combination secretary and business manager.
Is that your role in this ?
(The witness conferred with his counsel.)
Mr. HiLDRETH. I think our term of secretary is the head official
in the local union, and I think in some unions they do call them busi-
ness managers.
Senator McNamara. Thank you.
The Chairman. Senator Mundt?
Senator Mundt. How did you first learn of the fact that the team-
sters were picketing the Mount Hood Cafe ?
Mr. HiLDRETH. I just doii't — I am trying to recollect. I believe
that Mr. Malloy told me he was going over there.
Senator Mundt. You learned about it from Mr. Malloy, to the
best of your recollection ?
Mr. HiLDRETH. I believe so. It has been some time.
Senator Mundt. Did you inquire of Mr. Malloy at that time what
the purpose of the picketing was?
Mr. HiLDRETH. No, except, as I say, I thought it was for organiza-
tional purposes.
Senator Mundt. It would occur to me if ordering pickets was part
of your job and somebody else told you "I am putting pickets around
a certain place," the human thing to do would be to saj^ "How come
you are doing this instead of coming through the usual route?"
Mr. HiLDRETH. Well, that is the way it was done. That is all I can
answer you.
Senator Mundt. Does Mr. Malloy hold a position superior to yours
or inferior to yours in the ranks of the officialdom of the union?
Mr. HiLDRETH. I would say that I would be his superior.
Senator Mundt. That is the way I construed it. In view of that,
when one of your subordinate officers had taken over tlie responsi-
bility of part of your office by ordering pickets, I would think simple
courtesy would induce you to say, "Well, how come you are doing
this?"
Mr. HiLDRETH. As I say, Mr. Crosby
Senator Mundt. Mr. Malloy told you Mr. Crosby had ordered
them, is that it?
Mr. HiLDRETH. I believe that is it. That is correct. Mr. Crosby,
Senator Mundt. And Mr. Crosby would be a superior officer of
yours rather than a subordinate?
Mr. HiLDRETH. Of mine, yes, sir.
Senator Mundt, In answer to a question that the chairman asked
you, when he asked whether a vote of the membership was held to
call the pickets into being, I think you said to the best of your knowl-
edge no such vote was taken. Is that right?
Mr. HiLDRETH. That is correct.
IMPROPER ACTIVITIES IN THE LABOR FIELD 201
Senator Mundt. Let me ask you : Had a vote been taken, as secre-
tary you would have known about it, would you not ?
Mr. HiLDRETH. Yes, that is correct. Yes.
Senator Mundt. So, actually, you can tell us definitely that no vote
of the membership was taken to call this particular strike 5
Mr. HiLDRETH. That is correct ; yes, sir.
Senator Mundt. Thank you.
The Chairman. Senator Kennedy ?
Senator Kennedy. How often does the union meet?
Mr. HiLDRETH. Once a month.
Senator Kennedy. What percentage of the membership attends ?
Mr. HiLDRETH. I am sorry to say not too large.
Senator Kennedy. How many are in the union ?
I Mr. HiLDRETH. We have at the present time a local union of slightly
less than 800.
Senator Ivennedy. Wliat would you think would be an average
attendance ?
Mr. HiLDRETH. Probably 30 to 40.
Senator Kennedy. What is your term of office ?
Mr. HiLDRETH. I was appointed, sir.
Senator Kenedy. Appointed by whom ?
Mr. HiLDRETH. John Sweeney.
Senator Kennedy. By John Sweeney.
And Mr. Malloy, was he elected or appointed ?
Mr. HiLDRETH. I believe he was appointed. He was working for
local 223 when I was put in there.
Senator Kennedy. How long have you been in ?
Mr. HiLDRETH. Since February of 1954.
Senator Kennedy. Does that mean you can be removed and can ISIr.
Malloy be removed by Mr. Sweeney's successor ?
, . : Mr. HiLDRETH. It is my understanding, yes, sir.
Senator Kennedy. What officers of the local are elected by the
membership ?
Mr. HiLDRETH. They are not. They are appointive officers.
Senator Kennedy. You have no elections in the local ?
Mr. HiLDRETH. We don't have, no.
Senator Kennedy. Is that customary for all locals in that area ?
Mr. HiLDRETH. No, sir, it isn't.
Senator Kennedy. When did you have a local election last for any
officer of your local ?
Mr. HiLDRETH. There hasn't been any since I have been connected
with it.
Senator Kennedy. Do you think that is one reason why you do not
have many members coming to the meetings ?
Mr. HiLDRETH. It could possibly be, although I try to run it in a
fashion that I think it should be taken care of.
Senator Kennedy. Who do you now regard as your superior ? "Wlio
would appoint your successor ?
Mr. HiLDRETH. Well, the international union would be the one to
appoint the successor, if there was one.
Senator Kennedy. j\Ir. Brewster ?
Mr. HiLDRETH. It would have to come from the office here in Wash-
ington, the international office. That is, the authorization.
202 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Kennedy. My ]ast question is this: Some reference was
made to the Langley campaign, that the teamsters in your area were
originally supporting Mr. Langley's oi)ponent. As a result of Mr.
Elkins work and jNIr. Maloney's work the teamsters then supported
Mr. Langley. Are you familiar with that?
Mr. HiLDRETH. I remember the election, yes, sir.
Senator Kennedy. Did your local, or did you, play any part in
supporting Mr. Langley ?
Mr. HiLDRETH. No, I didn't participate.
Senator Kennedy. So far as you know, there was no message or
there was no word that went through you, or with your knowledge, for
the teamsters in that area to support Mr. Langley?
Mr. HiLDRETH. I don't think I quite understand you, sir.
Senator Kennedy. Do you know whether the teamsters in Portland
suppt)rted Mr. Langley ?
Mr. HiLDRETH. Yes. I mean, as a policy, yes.
Senator Kennedy. How was that decision reached?
How did you know ?
Mr. HiLDRETH. I wouldn't know.
Senator Kennedy. Did anyone ask you to support Mr. Langley?
]\Ir. HiivDRETH. Well, as part of the group, as part of the teamsters
union, it is generally the policy to support the candidates that the
whole, overall unit would be voting for, so we would be expected to
follow suit.
Senator Kennedy. Who would lay down that M-ord or i-each that
decision as to which candidates they would support ?
Mr. HiLDRETH. Well, I don't know. They have the legislative com-
mittee in the joint council, and I su])pose it would be up to them to
go through the candidates, and if thei'e were any candidates to be
supported, they would be the ones who would announce it.
Senator Kennedy. In other words, you were not called in, from
your position, and to the best of your knowledge, no member of your
local was called in, wlien that decision was reached, but you were
merely informed of the decision, and you were expected to support it.
Is that correct?
Mr. HiLDRETH. That is fundamentally correct, yes, sir.
Senator Kennp:dy. Thank you very much.
Senator (tOLdwatj:r. Mr. Hildreth, do the bylaws of your union
call for a strike vote prior to the strike ?
Mr. HiLDRETH. No, I don't know of any rule or regulation that calls
for a vote of the entire membership. If we have a contract with some-
one and we are having difficulty, then the people who are involved in
it, they would vote.
Senator Goldwater. Then a strike could be called by the heads of
the internatioiial in Seattle, is that correct?
Mr. HiLDRETH. Well, I wouldn't say. It has never happened, to my
knowledge. I wouldn't want to say that it did happen or it could.
Senator Goldwater. In this particular case involving the tavern
that we are talking about, what do you think would have happened if
you, yourself, after having found out the pickets were there, took it
onto yourself to order them off?
Mr. Hildreth. I don't think — it just wouldn't have been done.
I would probaby quit before I would have done it.
IMPROPER ACTIVITIES IK THE LABOR FIELD 203
Senator Goldwater. Would you have been secretary very long had
you done it ?
Mr. HiLDRETH. I doubt it.
Senator Goldwater. I have one more question. Regarding the sup-
port of political candidates who are chosen by somebody up above,
has your local ever been asked to contribute to those campaigns with
money ?
Mr. HiLDRETH. To my knowledge, our local union hasn't made any
financial contributions.
Senator Goldwater. Have you been asked to contribute men to work
prior to election day?
Mr. HiLDRETH. We did use men on Saturday, on their time off, to
deliver door-to-door literature.
Senator Goldwater. But you did not take them off their jobs and
pay them out of the layoff fund ?
Mr. HiLDRETH. No, sir.
Senator Goldwater. That is all. Thank you.
The Chairman. You said there have been no elections since you
l^.ave been a member of that local, is that correct?
Mr. HiLDRETH. That is correct, yes, sir.
The Chairman. How long have you been a member ?
Mr. HiLDRETH. Since 1954.
The Chairman. Do you know when the}^ had an election prior to
that time?
Mr. HiLDRETH. No, I don't.
The Chairman. Of course if all the officers are appointed, and I
l:)elieve you said they were, there is no occasion to hold an election, is
there?
Mr. HiLDRETH. No, that is correct, although I say I wouldn't know
whether they had any elections prior to my being there or not.
The Chairman. You would not know ?
Mr, HiLDRETH. No, I don't know that.
The Chairman. I do not quite understand. I tliought labor or-
ganizations were rather democratic, and that the local unions have a
right to elect their own officers. Wliat is the situation tliere that you
do not have elections, that you just get appointed?
Mr. HiLDRETH. Well, this particular local union is in what we call
trusteesliip.
The Chairman. Why is it in trusteesliip ?
Mr. HiLDRETH. I can't answer that. I was just appointed. That
was the condition it was in when I j>ot there.
The Chairman. As secretaiy of it, why would you not know?
Mr. HiLDRETH. I could only explain it this way : It is my under-
standing that, for some particular reasons, financial reasons, or reasons
that the local union is not functioning projjerly, it can be placed in
trusteeship by the international union until such time as it is deemed
to be in proper condition to be taken out of trusteeship.
The Chairman. As secretary of it, I understood you to say that
you are the head officer of that local ?
Mr. Hii.DKETH. That is correct ; yes, sir.
The Chairman. Tell us when it went into trusteeship and why,
and wliat is keeping it in there.
89330— 57— pt 1 —14
204 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. HiLDRETH. I can't answer you as to when it was placed in
trusteeship. I don't know that.
The Chairman. Do the records not show?
Mr. HiLDRETH. Well, I have never checked back to find out if they
do.
The Chairman. Wliat have you done to try to get it out of trus-
teeship?
Mr. HiLDRETH. I have spent a lot of time and effort attempting to
organize the jurisdiction that it covers.
The Chairman. What do you mean, organize the jurisdiction it
covers ?
Mr. HiLDRETH. Well, our jurisdiction is called miscellaneous driv-
ers. It is light-delivery drivers, small-parcel delivery, and any num-
ber of other smaller units. We have spent considerable time and
effort to organize it to get the membership up to the point where
our finances are on a sound, firm basis. I had hoped, frankly, that
we were just about there, and had even discussed with Mr. Crosby
sometime back about taking it out of trusteeship.
The Chairman. What is the state of your finances?
Mr. Hn.DRETH. We had, I think around last month, around $7,000
in the treasury.
The Chairman. How much ?
Mr. HiLDRETH. Around $7,000.
The Chairman. What dues to you charge ?
Mr. HiLDRETH. $5.25, sir.
The Chairman. A month ?
Mr. HiLDRETH. Yes, sir.
Tlie Chairman. And you have how many members ?
Mr. HiLDRETH. We liave just slightly less than 800.
The Chairman. What are the principal expenses? WTiat is that
money spent for ? It seems to me like it would not take it very long
to get out of any financial difficulties.
INIr. HiLDRETH. One dollar of the dues goes to provide an insurance.
All of our members are covered under a blanket insurance, and $1 of
that goes for that. The principal distribution of the rest of the
money would be salaries and per capitas, they are called per capitas,
and just the normal expense of operating the local union.
The Chairman. Is it a fact that some of these unions get a trustee-
ship and continue for many years under trusteeship without the right,
privilege, and opportunity of the membership to vote and elect their
officers ? Do you know that to be a fact ?
Mr. HiLDRETH. I couldn't say how long some of them have been in
trusteeship. I suppose that that could be true. I woudn't know.
The Chairman. I do not know about the teamsters' union, but I
received a letter from 1 place that said they had not had an election
in 20 years.
Mr. HiLDRETH. I don't know of anything
The Chairman. I am just trying to find out. In these unions where
some of these things are occurring that have been related here, the
rank and file of the membership seem to have completely lost control,
and the unions are in the hands of those that are misusing them. What
would you say about your union ? ,
Mr. HiLDRETH. About my particular union ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 205
The Chairman. Yes ; the one you belong to.
Mr. HiLDRETH. I felt I have personally been trying to do a good
job.
The Chairman. That is just about you. Do you feel that your
union is self-sustaining now, and that the men should have a right
to elect their own officers ? Do you feel that way about it ?
Mr. HiLDRETH. I think we are on pretty firm ground; yes, sir; I do.
The Chairman. All right.
Senator Mundt. Is Mr, Malloy an employee of your union ?
Mr. HiLDRETH. Yes, sir.
Senator Mundt. What is his annual remuneration ?
Mr. HiLDRETH. I think he gets either $110 or $120 a week.
Senator Muxdt. Plus expenses?
Mr. HiLDRETH. He has a car allowance. Did you mean daily
expenses ?
Senator Mundt. Well, out-of-pocket expenses. Is he, as of today,
an employee of the union ?
]Mr. HiLDRETH. Yes, sir.
Senator Mundt. As secretary of your organization, you, of course,
have read, I presume, the charter, the bylaws, and the constitution
of your union, have you not ?
Mr. HiLDRETH. We have a charter, which I have read. We don't
have any local bylaws. We have the international bylaws.
Senator Mundt. You have read those, have you ?
Mr. HiLDRETH. Yes ; I have.
Senator Mundt. Do they provide for the local election of officers,
where there is no trusteeship ?
Mr. HiLDRETH. Yes, sir.
Senator Mundt. How often ?
Mr. HiLDRETH. I am not going to say that they are not allowed to
have them oftener, but I think there is a provision in there for the
officers to have a 5-year term; that is, the elected secretaries. I be-
lieve the provisions for the board members differ somewhat from that.
Senator Mundt. The official title Mr. Malloy has is business agent ?
Mr. HiLDRETH. Yes, sir.
Senator Mundt. Is that an elected office where a union is not in
trusteeship ?
Mr. HiLDRETH. I believe that would depend in the local union. I
think in some of them the men are elected. I believe in others the
secretary is elected and has the authority to appoint them, the business
agents.
Senator JNIundt. In your own individual union, what is the status?
Mr. HiLDRETH. We were both appointed.
Senator Mundt. That is because you are under a trusteeship?
Mr. HiLDRETH. Yes, sir.
Senator Mundt. If you were not under a trusteeship, and you were
the secretary elected by the members, in your particular union would
you have the right, then, to appoint or not appoint Mr. Malloy, or in
your union, under those conditions, would he be subject to an election
by his fellow members ?
Mr. HiLDRETH. Well, that would be something that would have to
be discussed at the time that it was taken out of trusteeship, as to how
the elections were to be set up, as to whether or not both the secretary
206 IMPROPER ACTIVITIES IN THE LABOR FIELD
and the business agent would be elected, or if tlie secretary was elected
and the business agent appointed.
Senator JSIundt. Under your trusteeship, where you are now, and
you have said you liave read the bylaws of tlie international union,
do the bylaws of the international union provide any way in which a
local like yours can escape from the trusteeship, or is that left to the
whim and caprice of the international officials?
Mr. HiLDRETJi. Xo. I believe there is a provision in there whereby
the members may petition the international union to remove it from
trusteeship.
Senator Muxdt. Since you have been connected with- the local, has
such a petition ever been submitted ?
Mr. HiLDKF.Tii. No, sir.
vSenator Mundt. It has not?
Mr. IfiLDRETii. No, sir.
Senator McNamara. The witness iitdicates he has been a member
of the teamsters union since 1937,
Is that correct?
Mr. ITiLURETii. Myself?
Senator McNamara. Yes.
Mr. HiLURETTi. Yes, sir.
Senator McNamara. This was not the same local union, I take it?
Mr. IIiLDRETH. No, sir.
Senator McNamara. ^Yere you a member in 1937 of what you refer
to as local 343 ?
Mr. Hii.DRETH. No, sir. It is 223.
Senator McNamara. 223?
Mr. PIiLDRETii. Yes.
No, I was not a member of this union at that time. It was a differ-
ent local union.
Senator McNamara. When you first became a member in 1937, you
were a memljer of a local that did have local autonomy, as the term is
commonly used, where you elect your own officers in such thing, or
was that also a union in trusteeship ?
Mr. ITiLDREi'ii. No. We had elections, regiilar elections.
Senator McNaivfara. And in 1941 you were an officer of a local ?
Mr. IIiEORE'rn. I was at that time appointed by the union as an
organizer.
, Senator McNamara. Appointed by a local union to represent the
local, not the international ?
Mr. IliEnREJ'ii. No, just to represent the local union.
Senator McNamara. Then this locnl was one that was not under
trusteeship ?
Mr. HiLDRETii. Yes, sir, that is correct.
Senator McNamara. Is this your only experience with a local under
trusteeship as an officer?
Mr. ITiLDRETii. Yes, sir.
Senator IVIcNamara. Do you happen to know whether a great num-
ber of local unions that make up the western district — if that is what
you term it, — are under trusteeship, or are most of them operated
under local autonomy ?
Mr. iriLDRETii. I don't think I can answer that. I don't have any
knowledge of that.
IMPROPER ACTIVITIES IN THE LABOR FIELD 207
Senator McNamaka. Do yo\i know of another local nnioji that is
under trusteeship ?
Mr. HiLDRETH. Yes.
Senator McNamara. Then it is quite conunon, rather than the ex-
ception ?
Mr. HiLDRETH. No. I can only speak of our own vicinity. That is
the only one I am familiar with.
Senator McNamara. But you only know of one more that is under
trusteeship, or do you know of several more ?
Mr. HiLDRETH. No, I only know of one, I believe, that is under
trusteeship.
Senator McNamara. You said you had how many members? 400?
Mr. HiLDRETH. No. We have slig-htly less than 800.
Senator MbNamara. And your dues, as I understand, were $5 a
quarter or $5 a month ?
Mr. HiLDRETH. $5 and a quarter.
Senator McNamara. $5 for 3 months ?
Senator Mundt. $5.25 per month.
Mr. HiLDRETH. No. It is $5.25 per month, not for a 3-month period.
Senator McNamara. A 3-month period, then, would be $15.
Mr. HiLDRETH. That is correct.
Senator McNamara. I thouoht there was a little confusion, and we
ou<2;ht to clear it up for the record.
The Chairman. Are there any other questions ?
Mr. Kennedy. During this period of time, were you taking the pin-
ball operators into the union ?
Mr. HiLDRETH. When you refer to a period of time
Mr. Kennedy. Early 1955, January or February ?
Mr. HiLDRETH. Yes.
Mr. Kennedy. Mr. Elkins had come into the union already, Mr.
Elkins' employees?
Mr. HiLDRETH. To my knowledge, Mr. Elkins himself was never a
member of the union.
Mr. Kennedy. No, but Mr. Elkins' employees. He was an employer.
Were Mr. Elkins employees in the union ?
Mr. HiLDRETH. In the early part of 1955, yes. sir.
Mr. Kennedy. Do you know what the circumstances were under
which his people came into the union ?
Mr. HiLDRETH. Yes.
Mr. Kennedy. Would you tell us that ?
Mr. HiLDRETH. I was told by Mr. Crosby that there were some of the
pinball operators that were desirous of coming into the union, and he
told me to go over and contact them and talk about their coming into
the union, which I did.
Mr. Kennedy. Who besides Mr. Elkins' people did you take into the
union?
This is late 1954. November or December 1954.
Mr. HiLDRETH. I don't think that I took anyone into the union in
1954. I thijik the only people in that industry that I took into the
union was after January of 1955.
Mr. Kennedy. Would anybody else have a right to take people
into the union other than yourself?
Mr. HiLDRETH. If they came into the local union that I represent.
I would know about it.
208 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Kennedy. But you did not know of any of his employees being
members of the union ?
Mr. HiLDRETH. Not prior to that time.
Mr. Kennedy. They were taken in early in 1955, do you think?
Mr. HiLDRETH. I think our records would show that they came
in in
Mr. Kennedy. Did Mr. Crosby tell you to go see them ?
Mr. HiLDRETH. He gave me the name of the company.
Mr. Kennedy. Why would he know about that rather than your-
self? "^
Mr. HiLDRETH. Well, that wouldn't be uncommon. Someone may
have called him.
Mr. Kennedy. Anybody that wanted to get into the union could
get into the union then ?
Mr. HiLDRETH. Do you mean anybody in that particular industry or
just anybody?
Mr. Kennedy. Anybody in the pinball operation. Could he get
into the union during this period of time ?
Mr. HiLDRETH. As far as I knew, yes.
Mr. Kennedy. Do you know if anybody applied and was turned
down ?
Mr. HiLDRETH. Well, we were taking some of these operators in
about the first part of that year, and I was told to hold up on Mr.
Stan Terry and Mr. Lou Dunis for a while.
Mr. Kennedy. Who told you to hold up on Mr. Stan Terry and
Mr. Lou Dunis ?
Mr. HiLDRETH. Mr. Crosby.
Mr. Kennedy. For what reason ?
Mr. HiLDRETH. Well, he didn't say right at the time. As I recall,
he didn't say right at the time.
Mr. Kennedy. What reason was there? Did you ever learn what
the reason was he did not want Stan Terry and Lou Dunis in the
union?
Mr. HiLDRETH. I was told that it concerned some connection that
they may have had with Mr. Elkins.
Mr. Kennedy. You just let Mr. Elkins in the union, Mr. Elkins'
employees, did you not?
Mr. HiLDRETH. I did take them in the first part.
Mr. Kennedy. And then you would not let
Mr. HiLDRETH. I am trying to piece the thing together a little bit.
Mr. Kennedy. I just want the truth, Mr. Hildreth.
Mr. Hildreth. Tliat is all I am trying to give you, sir.
Mr. Kennedy. You let Mr. Elkins' employees in, and then im-
mediately after, when Mr. Terry's employees tried to aret in. you
would not let them in because they were associated with Mr. Elkins?
Is that something you have been told since that time?
Mr. Hh.dreth. No. I am trying to remember. It was at that time,
when that discussion came up, that I was told to hold any applica-
tions UP for a while.
Mr. Kennedy. Wliat did thev have against Mr. Elkins?
Mr. Hildreth. I don't know Mr. Elkins. I don't know.
Mr. Kennedy. Did you give Mr. Terry a withdrawal card in De-
cember of 1954?
Mr. Hildreth. I believe about that time.
IMPROPER ACTWITIES EST THE LABOR FIELD 209
Mr, Kennedy. Why did you give him a withdrawal card?
Mr. HiLDRETH. Mr. Crosby advised me to.
Mr. Kennedy. Wliy did he advise you to put Mr. Terry out of the
union in December 1954 ?
]\Ir. HiLDRETH. I don't know. I don't remember.
Mr. Kennedy. Was this, again, because of Mr. Elkins, his tieup
with Mr. Elkins, or what ?
Mr. HiLDRETH. I don't know.
Mr. Kennedy. You see, the thing is you put him out of the union
in December 1954. You took Mr. Elkins in, according to your testi-
mony, shortly afterward. Mr. Terry then tried to get in the union.
You picketed the Mount Hood Cafe, where Mr. Terry had his opera-
tion. Then you won't let Mr. Terry in.
Mr. HiLDRETH. Mr. Terry came in; his peoj^le, I will put it that
way, came in, I believe, the latter part of February or March.
Mr. Kennedy. I think you will find it is the end of March. How
did he get into the union ? Why did you give him a withdrawal card
and then let him in the union? "Wlio gave those instructions?
Mr. HiLDRETH. Mr. Crosby.
Mr. Kennedy. Mr. Crosby was running this thing completely,
then, was he, about who could get in the union from the pinball op-
erators and who should stay out?
Mr. HiLDRETH. That is the only instance I know of.
IMr. IvENNEDY. You have the instance of Mr. Terry, Mr. Dunis,
and then he puts the pickets on the Mount Hood Cafe, and then he
gives instructions about Elkins. Why did you let Mr. Norman Nemer
m the union? Did you let him in, him and his employee?
Mr. HiLDRETH. Yes.
Mr. Kennedy. Who gave you the instructions for that ?
Mr. HiLDRETH. I think at that time — I think there were others who
came in at that time.
Mr. Kennedy. I think, if you will look at your records, you will
find he is the first one that got in the union. Mr. Elkins had come in
much earlier through Mr. Maloney, Mr. Elkins' employees. Then you
let Mr. Norman Nemer in and one employee. Why did you let Mr.
Norman Nemer in? Did you discuss that with Mr. Crosby?
Mr. HiLDRETH. No. I don't remember discussing Mr. Nemer with
Mr. Crosby. But I believe, if my memory is correct, that there were
others who were in the union at about that time.
Mr. Kennedy. There might have been some small operators, but
there were no major operators. None of the major operators got in.
He got in in February of that year, Mr. Hildreth.
Mr. HiLDRETH. You are speaking of whom ?
. Mr. Kennedy. Norman Nemer. You discussed with Mr. Crosby
about Mr. Wright getting into the union, and Mr. Wright is the one
that set up the Acme Amusement Co. Was that discussed with you ?
Who gave instructions to allow him into the union?
Mr. Hn.DRETH. Mr. Crosby told me to go over and see them. He
thought that that was one of the places where he thought they wanted
to come into the union.
Mr. Kennedy. He is the one that gave the instructions for Mr.
Budge Wright to get into the union, of the Acme Amusement Co. ?
210 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. HiLDKETH. That is correct, although I will say I didn't know
of any Acme Amusement. I have always known it as the Western
Distributors.
Mr. Kennedy. That was his company name.
Mr. Chairman, here is
Senator Mundt. Have you finished ?
Mr. Kennedy. This is the withdrawal card of Stan Terry which
I wanted to put in as an exhibit.
The Chairman. The Chair directs the clerk to present to you what
is entitled an "Honorable Withdrawal Card," the original, which
appears to be dated the 30th day of iSTovember 1954, and made to Mr.
Stan Terry, and bearing the signature of L. E. Hildreth, secretary,
together with a letter, apparently from you, dated Xovember 22 to
Mr. Terry with reference to this card, and another letter of October
6, 1955, from you to Mr. Stan Terry. I ask that you examine them
for the purpose of identification.
(Documents handed to witness.)
The Chairman. Is that the original withdrawal card which you
issued to Mr. Terry?
(The witness conferred with his counsel.)
Mr. Hildreth. I believe it is, sir.
The Chairman. Is that vour signature on the card?
Mr. Hildreth. Yes, sir.
The Chairman. Then the card may be made exhibit No. 34.
(The document referred to was marked "Exhibit No. 34" for i-efer-
ence and will be found in the appendix on p. 432.)
The Chairman. I ask you to examine the two letters and see if those
are letters that you wrote to Mr. Terry.
(The witness conferred with his counsel.)
Mr. Hildreth. It is my signature.
The Chairman. They will be made exhibits 34-A and 3'^B.
(The documents referred to were marked "Exhibits 34-A and 34-B"
for reference, and will be found in the appendix on pp. 433, 434.)
The Chairman. Will you read the top letter, the one that accom-
panied the withdrawal card ?
Mr. Hildreth (reading) :
Mr. Stan Terry,
1451 Northeast Alberta, Portland Oreg.
Dear Sir and Brother : This withdrawal cai'd is being issued to you by direc-
tive of the international union, through Clyde C. Crosby, international organizer.
You will also find enclosed our check in the amount of $5 which is in refund
of December dues.
The Chairman. He had paid his dues ?
Mr. Hildreth. Sir?
The Chairman. He had paid his dues? You had to refund his
dues along with sending him the card ?
Mr. Hildreth. Yes, sir.
The Chairman. And you got orders to put him out of the union
from Clyde Crosby ?
Mr. Hildreth. Yes, sir.
Senator Mundt. Following up on that, that was what date, Mr.
Hildreth, when you wrote that letter? What is the date of that
letter?
Mr. Hildreth. November 22, 1954.
IMPROPER ACTIVITIES EST THE LABOR FIELD 211
Senator Mundt, November of 1954. And you testify that the latter
part of March 1955, you reissued a card to this same Mr. Terry; is
that correct?
Mr. HiLDRETH. I believe it was either February or March.
Senator Mundt. In that general area of time.
Mr. HiLDRETH. Yes, sir.
Senator Mundt. And that you reissued the card at the request of
the same Mr. Crosby who had asked you earlier to refund the dues ; is
that correct ?
Mr. HiLDRETH. Yes, sir.
Senator Mundt. Can you recall for the committee what reason Mr.
Crosby gave you in 1955 for reissuing the card to Mr. Terry?
Mr. HiLDRETH. What reason he gave ?
Senator Mundt. Yes ; for reissuing the card.
Mr. HiLDRETH. I don't believe he gave me any reason, other than
to say we could take him into the union.
Senator Mundt. Did he give you any reason for putting him out of
the union when he put him out ?
Mr. HiLDRETH. No ; I don't remember any particular reason.
Senator ^NIuxdt. Under the normal o|)eration of things, Mr. Hil-
dreth, if j-ou have a union man and he is paying his dues, he is cur-
rent, to issue him a withdrawal card, there must be a reason. Must
there not be a reason that you send him a card and give him back his
money ?
Mr. HiLDRETH. There probably would be, but I didn't discuss any
particular reason about it.
Senator ]Mundt. You are quite sure that, searching your memory
carefully. Mr. Crosby did not give you any reason ?
Mr. HiLDRETH. Not that I recall.
Senator Mundt. And he did not give you any reason when he said
put him back in ?
Mr. HiLDRETH. No, not any specilic reason, as I recall.
Senator ^Mundt. Can you think of any general reason?
Mr. HiLDRETH. The other operators were members of the union at
that time?
Senator Mundt. Did he say anything to the effect that either Mr.
Sweeney or Mr. Brewster would like to have Mr. Terry back in at that
time ?
Mr. HiLDRETH. I don't remember anything of that nature ; no, sir.
Senator Kennedy. I have a list here of 123 locals of the teamsters
which are under trusteeship. This list comes from the teamsters.
There are reasons given in most cases as to why they are put under
trusteeshi]), but there is no reason given as to why local 223 was put
under trusteeship. You have informed the committee that you do
not know the reason, is that correct ?
Mr. HiLDRETH. That is correct. I don't know. I don't know any
reason.
Senator Kennedy. I think, Mr. Chairman, it would be helpful if we
would ask tlie teamsters to supplement this information. They have
given us rather brief reasons in each case, but it would be helpful,
also, if they could tell us how long each one of these locals has been in
trusteeship.
The Chaikman. The staff will prepare a letter for my signature
to the Teamsters International here in Washington.
212 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Kennedy. I might say, Senator Kennedy, that we asked for
that information, and I gjuess they just haven't sent it.
Senator Kennedy. Thank you.
Tlie Chairman. Have they indicated whether they will supply it?
Mr. Kennedy. They said they would, Mr. Chairman.
The Chairman. Well, just follow it with a telephone call, then.
Senator Kennedy. I understand this is 123, and that there are ap-
proximately 1.000 locals in the country, and 123 of them are in trus-
teeship. I wonder if we could get that information, what percentage
of the locals are in trusteeship, if Mr. Hildreth cannot furnish us with
that.
Mr. Hildreth. I don't know.
Senator Kennedy. Thank you.
The Chairman. Is there anything further?
Mr. Kennedy. That is all.
The Chairman. Thank you very much. You may stand aside.
Mr. Kennedy. INIr. Chairman, we have an affidavit from Mr.
Wright, partner of the Acme Amusement Co., and also a copy of the
contract that they signed for the Acme Amusement Co. They possibly
may be made part of the record.
The Chairman. Does the committee wish to hear the affidavit read ?
If not, without objection the affidavit of Mr. Veral T. Wright, dated
the 28t]i day of February, 1957, together with what appears to be the
photostatic copy of the partnership agreement between Budge AVright,
Herman Walter, Joe P. McLaughlin, and Fred E. Elkins, will be
printed in the record at this point.
(The document referred to follows :)
City of Washington,
District of Columbia, ss:
I, Veral T. Wright, also known as Budge Wrigbt, being first duly sworn, depose
and say that I have read and examined the photostat of a certain partnership
agreement, bearing date of January 27, 1955, the same agreement being between
Budge Wright, Herman Walter, Joseph P. McLaughlin, and Fred B. Elkins, and
the name of the said partnership being Acme Amusement Co., is a true and cor-
rect copy of the original partnership agreement entered into by said partnership
on said day for said piu'poses, and that my signature attached hereto and the
signatures of the others are correct.
I make this statement voluntarily and of my own free will, without any
promise of favor or intimidation.
Veeal T. Weight.
Sworn to before me this the 28th day of February, 1957.
Chas. E. Alden, Notary Public.
My commission expires August 14, 1957.
Witness : Thomas H. Ryan,
Attorney for Mr. Wright.
Partnership Agreement
This agreement made by and between Budge Wrigbt, Herman Walter, Joe P.
McLaughlin, and Fred E. Elkins, who agree to become partners in the business pf
operating various and sundry amusement devices of various kinds, and to repair,
sell, rent, and lease said amusement equipment and devices for a valuable con-
sideration, and by these presents do agree to be co-partners together under and
by the name of Acme Amusement Company, and that the principal place of busi-
ness shall be located in the City of Portland, Oregon.
Said partnership shall continue until said partners mutually agree to dissolve
the same.
A majority of the four partners shall be authorized to determine all questions
as to the conduct of the partnership business.
IMPROPER ACTIVITIES IN THE LABOR FIELD 213
For the convenience in the transaction of the business of said partnership there
shall be selected from among the partners a President and Treasurer ; the duties
to be performed by such Officer shall be those usual to the offices which they
occupy respectively in business generally.
No partner shall sell, assign, give or otherwise dispose of his share and interest
in said partnership until he has first offered said interest to the remaining part-
ners, and that said remaining partner or partners may if they desire, purchase
said interest and share, and the said interest so purchased or acquired shall be
divided among the partners contributing to the purchase of said interest or
share. The purchase price for said partnership interest shall be mutually agreed
upon or in case of a difference, the price shall be ascertained by arbitration.
It is mutually and expressly understood and agreed between the parties hereto,
that said partners shall share in the profits and proceeds from said business
equally and also that each of said partners shall be liable for any losses incurred
in the operation of said business in the same proportion.
Dated this 27th day of January, 1955.
Budge Wright.
Herman Walter.
J. P. McLaughlin,
Fred E. Elkins.
The Chaieman. Mr. Elkins, come forward, pleuse.
(Members present at this point: The Cliairman, Senators Kennedy,
McNam.ara, Miindt. and Goldwater.)
Mr. Kennedy. Also, Mr. Chairman, here is the statement of Mr.
Wright, which generally corroborates the story of Mr. Elkins.
Tlie Chairman. I placed in another affidavit a moment ago.
Mr. Kennedy. The other affidavit states that the partnership agree-
ment which is attached is the partnership agreement which they signed
for the Acme Amusement Co. This affidavit is signed by the same
person, Mr. Budge Wright, and states the circumstances that arose
that led up to the Acme Amusement Co.
The Chairman. Is there any objection on the part of any member to
this being placed in the record without reading ?
There is none. It will be placed in the record at this point.
(The document referred to follows :)
City of Washington,
District of Columbia, ss:
I, Veral T. Wright, also known as Budge Wright, being first duly sworn, depose
and say, that I am a coin machine distributor and have my business known as
Western Distributors, at 1226 S. W. 16th, Portland, Oreg., from where I sell vari-
ous types of coin operated amusement devices. I have been in the business for
some 25 years.
The following is my best present recollection of the facts concerning the pin-
ball industry in the State of Oregon, as it appertains to the matters upon which
I was questioned approximately 2 weeks ago by Messrs. Kennedy and Adlerman
in Portland, Oreg.
Sometime in the spring of 1954, a meeting was held in the Multnomah Hotel
at which were present certain members of the Coin INIachine Men of Oregon,
among whom were myself, Stan Terry, Lou Dunis and I believe Harry Arns-
berg. Also pi-esent was a Mr. John Sweeny from the teamsters union, and Lou
Wolcher, a coin machine distributor from San Francisco. Possibly there was
another union man present at this meeting, but I have no recollection of who
it would be. It was an informal meeting and drinks were served. There was a
lot of talking. I am not clear as to the details of what took place; however,
the gist of the discussion i-elated the advantages to the Coin ^Machine INIen of
Oregon in joining the union and the political and economic benefits that would
accrue to them as employers having union connections. At this time and there-
after, as well, the operation of pinball machines in the Portland area had been
under attack by the city council and it was felt that an alliance between or-
ganized labor and the pinball operators would be advantageous to the operators
in preserving their business.
214 IMPROPER ACTIVITIES IX THE LABOR FIELD
No definite arrangement was made at this meeting and it was just an explora-
tion of the possibility and advantages of the iinionization of the coin machine
men of Oregon. These discussions continued in a half-hearted way during 1954
at meetings of our trade association, the Coin Machine Men of Oregon.
Some time during the month of January 1955, I was approached by one Jim
Elkins, who for a long time had been a purchaser of coin-operated machines I
sold. Mr. Elkins stated to me that he had a man from California with union
connections that he wanted me to meet. I agreed to meet him to discuss a busi-
ness proposition suggested by Elkins.
Shortly thereafter, Mr. Jim Elkins brought Joe McLaughlin to my office and
said he was a union organizer. McLaughlin represented to Herman Walters,
a long-time employee of mine, Elkins and myself that he, McLaughlin represented
and had connections with the teamsters union that would enable us to run a pin-
ball and jukebox rental business in Portland and that we would have an advan-
tage over other operators and in particular, Stan Terry, because the operation
would be unionized, whereas the other operators would not.
Shortly thereafter, Mr. Elkins called me and made an appointment for Wal-
ters, Elkins, McLaughlin and myself to meet at the Portland Towers, a Portland
apartment house. A Mr. Tom Maloney was present at this meeting, but he took
no part in this discussion. There were either one or two meetings at the Port-
land Towers, I am not positive of the second meeting. The business proposition
was discussed further. Mr. Elkins and Mr. McLaughlin both represented to
Walters and myself that there would be considerable advantage to our being in
the union and that we should join. There was some statement made by either
Elkins or McLaughlin, and in any event, acquiesced to by both, that they would
keep Stan Terry out. Stan Terry at this time had the largest pinball route in
Portland. Keeping him out, would help my Western Distributor customers who
were his competition and generally small operators, as well as permit our pro-
posed partnership to get his locations. Among the advantages offered to me by
McLaughlin was that he, McLaughlin, could get Bally equipment which was then
under franchi.«e to one Lou Duuis, the distributor supplying Stan Terry, and
which equipment was then in demand at tavern and other locations.
Elkins or McLaughlin suggested to me that I verify McLaughlin's representa-
tions that talking to him was the same as talking to Sweeney or Crosby, by talk-
ing to Clyde Crosby, a Portland teamsters official. One morning in the last week
in January I telephoned Crosby for an appointment to see him. I talked to
Crosby and got an appointment to meet with him that morning. I met Mr.
Crosby at his ofiice in the teamsters building in Portland. I took with me a
signed health and welfare agreement which I believe Lloyd Hildreth, a union
representative, left at my company i)remises some time shortly before. I do not
have a detailed recollection of this meeting with Crosby. I remember some dis-
cussion of the fact that I had to go to the doctor that morning; and that Crosbj^
said that the health and welfare agreement was iii Hildreth's jurisdiction and
I was to take it downstairs to Hildreth's office. Hildreth was not in his ofiice
and I left the paiier. I returned to Western Distributors and remember mention-
ing to Herman Walters that I wondered why I was sent over to see Crosby be-
cause nothing was said to clear up McLaughlin's authority.
Thereafter a contract was signed whereby Fred Elkins (the brother and rep-
resentative of Jim Elkins), McLaughlin, Walters and myself entered into a part-
nership known as Acme Amusement Co. for an operation in the Portland area.
The first contract, which was drawn by Mr. Elkins' attorney, was not satis-
factory to Mr. Walters and myself, because it gave Acme distributor's rights in
competition with those enjoyed by my company. Western Distributors. The
contract was signed in the latter part of January by Fred Elkins. Joe McLaughlin,
myself, and Herman Walters. Each partner contributed $1,250. The money
was put on the books of Western Distributors and later on a separate set of
books which was set up for Acme Amusement Co. Mr. Walters, a partner,
solicited locations, a total of five being obtained. I have been informed that
Walters and Elkins made up a list for the solicitation of approximately 12 loca-
tions. The Acme Amusement Co. was dissolved approximately fiO days later.
After the first few days it was impossible for Walters or me to contact Elkins
or McLaughlin and it wasn't until shortly before dissolution that we were able
to get hold of them, at which time Jim Elkins phoned me and asked for his and
McLaughlin's money back. Jim Elkins had put up the money for his brother,
Fred. I gave a check to Jim Elkins for .$2,500 to pay McLaiighlin's and his share
as well and the partnership was dissolved.
IMPROPER ACTIVITIES IN THE LABOR FIELD 215
With reference to the incident involving picketing at the Mount Hood Cafe,
I had no participation in the affair. I linew that Mr. Walters had solicited the
Mount Hood Cafe, but when I heard that a jiicket had been put on the Mount
Hood Cafe I was surprised and unhappy, although I realize tiiat unions some-
times use picketing to enforce their policies. 1 did not, of my own knowledge,
know of the picketing although I have been informed that the newspapers car-
ried stories of the picketing. This was in late January or early Febi'uary 1955.
I have been a member of the board of directors of the Coin Machine Men of
Oregon since November 27, 1950. Although I am no longer a member of the
board of directors, I still maintain my membership in the association. For
seme time, as above stated, the Coin Machine Men of Oregon had been in contact
with the teamsters' union with reference to the mutual advantages that would
accrue to the organization by the (operators becoming unionized.
In the early spring of 1955, subsequent to the picketing of the Mount Hood
Cafe above mentioned, the Coin Machine Men of Oregon, Inc., representing its
members, signed an agreement unionizing the coin machine industry of Oregon.
At about the same time this master union agreement was entered into, all the
association members, at an association meeting, signed a fair-trade agreement,
to limit competition among the members. No copies were given to me, although
I became a member of the "grievance board" set up by the organization.
I make this statement voluntarily anil of my own free will, without any
promise of favor or intimidation.
Veral T. Wright.
Sworn to before me this the 28th day of February, 1957.
Chas. E. Alden, Notary Public.
My commission expires August 14, 1957.
Witness :
Thomas H. Rtan,
Attorney for Mr. Wright.
TESTIMONY OF JAMES B. ELKINS— Resumed
Mr. Kennedy. When you were talking in the room with Mr. Joe
McLaughlin and with Mr. Budge Wright, did Mr, McLaughlin tell
Mr. Wright to go down to the teamster union and get in the teamsters ?
Mr. Elkins. He told him to go down and talk to Mr. Crosby, and
that Mr. Crosby
Mr. Kennedy. He told him to go down and see Mr. Crosby?
Mr. Elkins. And Mr. Crosby woidd verify what he said.
Mr. Kennedy. Did Mr. Wright then go down to see Mr. Crosby ?
Mr. Elkins. He said he did.
Mr. Kennedy. This was to verify when Joe McLaughlin said he
spoke for the union, and the union would perform these services for
him in Acme Amusement Co. Joe McLaughlin said, "Go down and
see Clyde Crosby and he will verify this for you" ; is that correct ?
Mr. Elkins. That is correct.
Mr. Kennedy. Did Wright report back to you that Clyde Crosby
verified what Joe McLaughlin said ?
Mr. Elkins. That is correct.
Mr. Kennedy. It was on that basis that you went ahead with the
Acme Amusement Co. ?
Mr. Elkins. Yes.
Mr. Kennedy. During this j)eriod of time, were the other big dis-
tributors having difficulty getting into the union ?
Mr. Elkins. They were not getting in.
Mr. Kennedy. They were not getting in ?
Mr. Elkins. That is right.
Mr. Kennedy. Was the biggest distributor at that time Mr. Stanley
Terry?
216 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Elkins. Yes ; I think he was the largest.
Mr. Kennedy. And the second biggest was Mr. Lou Dunis, or one
of the biggest ?
Mr. Elkins. I believe that is right.
Mr. Kennedy, And they were the ones having the most difficulty?
Mr. Elkins. That is right.
Mr. Kennedy. Were the teamsters very strong about keeping them
out of the union, above everyone else ?
Mr. Elkins. I believe Mr. Maloney said he would crawl to Seattle
on his knees if Stan Terry or Lou Dunis got in the union. I believe
that is the exact remark he told my brother and I.
Mr. Kennedy. Did they tell you John Sweeney and Frank Brewster
felt very strongly about keeping Terry out of the union?
Mr. P]lkins. That is correct.
Mr. Kennedy. So they were not going to get into the miion under
any circumstances ?
Mr. Elkins. That is correct.
Mr. Kennedy. And that is why at the beginning, at least, you were
putting pickets on some of Stan Terry's places, is that right?
Mr. Elkins. That is correct.
Mr. Kennedy. And that was in order to take over some of those pin-
ball machine locations?
Mr. Elkins. That is right.
Mr. Kennedy. Did Mr. Stanley Terry ever get into the union ?
Mr. Elkins. He did.
Mr. Kennedy. Would you tell the committee what was related to
you about his getting into the union, the difficulties he encountered?
Mr. Elkins. I was objecting to taking his locations. They wanted
me to turn the locations I had formerly been operating over to him.
I said, "He will eventually get into the union all right," but in the
meantime I am talking to Mr. Terry and Mr. Terry said, "I am going
to have to pay a fine, or pay a little penalty, but I will get in."
Mr. Kennedy. What did he mean by the fact that he was going to
have to pay a little penalty ? What did you understand he meant by
that?
Mr. Elkins. Well, I understood that he was going to buy his way
in. He said, "I have gone over and told Mr. Crosby that I have been a
bad boy, and I am willing to pay for it."
Mr. Kennedy. Just going back, what did the teamsters object to in
Mr. Terry ? Wliat did they dislike about Mr. Terry ?
Mr. Elkins. The only objection they could find was that he had sup-
ported John McCourt.
Mr. Kennedy. In the election ?
Mr. Elkins. That is correct.
Mr. Kennedy. Go ahead.
Mr. Elkins. Of course, I third?: that was just
Mr. Kennedy. An excuse ?
Mr. Elkins. Yes. I think John McCourt is an honest politician, or
Ts^hatever you want to call him.
Then he made a few trips to Seattle, according to what he told me,
and then he met John Sweeney for breakfast in San Francisco.
Mr. Kennedy. Did he tell you he went down to San Francisco?
Mr. Elkins. That is correct.
Mr. Kennedy. Who was he going to see down there ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 217
Mr. Elkins. John Sweeney.
He made several attempts to talk his way in with John. John
told him it was like a poker hand, the man with the best hand won,
and he had a pat hand and he wasn't ft'oing to let him in. I got Mr.
Tom iSIaloney's word for that. I wonldn't take tliat, but I did take
Stan Terry's, and he told me practically the same thing.
Mr. Kennedy. He told you that he wasn't being successful in try-
ing to get in ?
Mr. Elkins. That is right, and that they were a little hot at me
over one particular location, the labor temple.
Mr. Kennedy. You mean you had these conversations after he talked
to John Sweenej^ ?
Mr. Elkins. That is correct.
Mr. Kennedy. What finally happened as far as Stanley Terry ?
Mr. Elkins. "Well, he connived around and finally got in to Mr.
Brewster and, I guess, gave him some money, and his troubles were
over.
Mr. KJENNEDY, Did he ever relate to you how he had done it, how
he had connived around ?
Mr. Elkins. Well, yes. He said he maneuvered through various
people to get acquainted, to get an introduction, to square it away
with Frank Brewster.
Mr. Kennedy. Who did he say he had done it through ?
]Mr. Elkins. Well, ultimately through Hy Goldbaum, I believe.
Mr. Kennedy. Mr. Hy Goldbaum ?
Mr. Elkins. I believe that is right.
Mr. Ivennedy. What did you know or understand about Hy Gold-
baum ?
Mr. Elkins. Oh, Lord.
Mr. Kennedy. Well, let me ask you
Mr. Elkins. All right. I don't like to mix other people up in this.
Mr. Kennedy. You understood Mr. Goldbaum and Mr. Brewster
had been friends ?
Mr. Elkins. That is correct.
ISIr. Kennedy. And you understood that it was possible that Mr.
Brewster might do a favor for Mr. Goldbaum ?
Mr. Elkins. That is correct.
Mr. Kennedy. That Avas related to you ?
Mr. Elkins. That is right.
Mr. Kennedy. Were you told that Mr. Terry made the contact
with Mr. Goldbaum ?
Mr. Elkins. That is right.
Mr. Kennedy. And he met with Mr. Goldbaum ?
Mr. Elkins. And Mr. Goldbaum had arranged an interview with
Mr. Brewster for him.
Mr. Kennedy. And Mr. Terry then went up to Seattle and saw
Frank Brewster?
Mr. Elkins. That is correct.
Mr. Kennedy. Did Mr. Terry relate to you afterward about get-
ting in the union ?
Mr. Elkins Yes; he did.
Mr. Kennedy. What did he tell you he had to do to get into tho
union ?
Mr. Elkins He had to pay a chunk of money.
218 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Did he mention the amount of money ?
Mr. Elkins. $10,000 or more.
Mr. Kennedy. $10,000?
Mr. Elkins That is correct.
Mr. Kennedy. To wliom did he have to pay the money ?
Mr. Elkins. Frank Brewster.
Mr. Kennedy. And he was then going to be allowed into the union?
Mr. Elkins. He was allowed in it.
3Ir. Kennedy. He was allowed in the union at that time ?
Mr. Elkins. That is right.
Mr. Kennedy. How did Tom Maloney and Joe McLaughlin, who
had been talking about keeping Stan Terry out of the union, react?
Who told them about that ?
Mr. Elkins. I told them about it.
Mr. Kennedy. You told them about it ?
Mr. Elkins. Well, I told my brother, and told him
Mr. Kennedy. Tell me this : Had the local union known that he
was getting in?
Mr. Elkins. No, they didn't know it.
Mr, Kennedy. How long after Stanley Terry made the trip to
Seattle did you see him and have this conversation ?
Mr. Elkins. A very few days. He told me not to say anything
about it, and I probablj' waited 30 minutes to tell my brother, and he
couldn't keep quiet about it. He called Tom Maloney and told him
to start crawling to Seattle, that Stan Terry was in the union.
Then he immediately called me. Joe didn't have much to say.
He, I think, went on a drunk that day, or something. Tom was
pretty upset. He said, ''How in the so and so can you keep a man
with that much money out ?"
Mr. Kennedy. What did he say ?
Mr. Elkins. He said, "How in the so and so can you keep a guy
out of the union when he has that much money ?"
(At this point. Senator Goldwater withdrew from the hearing
room.)
Mr. Kennedy. Was this after the conversation at Seattle ?
Mr. Elkins. Yes.
Mr. Kennedy. What did he say to you after that ?
Mr. Elkins. He said he just stacked it too high, and they went
round and round.
Mr. Kennedy. Did he say anything about what Sweeney would
have done if the decision would have been up to him ?
Mr. Elkins. He just said he wouldn't have gotten in through Jolm
Sweeney ; John would have stopped him.
Mr. Kennedy. Did he mention anything about the fact that Brew-
ster let him in ?
Mr. Elkins. Yes.
Mr. Kennedy. Did he say anything about Frank Brewster and the
money ?
Mr. Elkins. Well, I just said w^hat he said.
Can I correct something ? I must have worded it wrong yesterday.
Joe McLaughlin has not talked to me about houses of prostitution at
no time, about running any houses of prostitution.
Mr. Kennedy. He did not ?
Mr. Elkins. He did not, no.
IMPROPER ACTIVITIES ES,' THE LABOR FIELD 219
Mr. Kexnedy. The conversations about the houses of prostitution
fe
were
Mr. Elkins. Were between Tom and I, that is correct, and Mr.
Langley on the one occasion.
Mr. Kexxedy. But other than that, Joe McLaughlin never took
any part in that ?
Mr. Elkixs. No. He led me to believe, and I l)elieve it, that he
didn't approve of them, and he had a couple of boys in college. 1 don't
■svant to leave the wrong impression about him.
Mr. Kennedy. I think that you told me that before.
Mr. Elkixs. That is correct.
Mr. Kexxedy. I should have corrected the record.
This convei-sation was related to you in what, sometime during
March of 1955 ?
Mr. Elkixs. That is the best of my recollection.
Mr. Kexxedy. So Mr. Ten y got in the union, is that right ?
Mr. Elkixs. That is right.
Mr. Kexxedy. Did Mr. Dunis then get into the union ?
Mr. Elkixs. No, he did not.
Mr. Kexxedy. AVlien was he allowed into the union ?
Mr. Elkixs. It was some little time later, probably several months.
1 never paid any attention to when he did get in. I met him down at
First and Main about a month later and he said dammed if he was
going to pay what Stan did to get in.
Mr. Kexxedy. Did you ever discuss with him what he had to do to
set into the union ^
Mr. Elkixs. No. That is the only remark he made, that he would
stay out before he would pay, that his men were in in Seattle, but he
was going to have to pay a big figure to get his men in in Portland and
he wouldn't do it.
Mr. Kexxedy. He was not going to pay it ?
Mr. Elkixs. That is correct.
Mr. Kexxedy. He ultimately did get in, though ?
Mr. Elkixs. I don't know whether he paid or not, but he got in.
Mr. Kexxedy. Could we go to another witness, Mr. Chairman?
The Chaikmax. Are there any questions of the witness at the pres-
ent ?
Senator Kexxedy. As I undei*stood it, Mr. Brewster said it would
take $10,000 to get into the union and then this man got into the union 'i
Mr. Elkixs. No. Mr. Tei-ry told me that he paid that to get in, sir.
Senator Kennedy. He said he paid it?
Mr. Elkins. That he paid the $10,000 to Brewster to get in.
Senator Muxdt. Mr. Elkins, what did the admission of Mr. Terry
into the union do to the plans of the Acme Co. to monopolize the pin-
ball market?
Mr. Elkins. Well, it kind of blew them up, in a way. We sold the
Acme, 50 percent of the Acme, back to Mr. Wright and Mr. Walter.
Ill other words, they gave us the money that we had put in there. I
l)elieve it was $2,500. I believe Mr. Wright gave me the check and I
gave McLaughlin his and my brother his out of it. ']
Senator Mundt. In otlier words, that broke up the plan to get a
HiOiio])oly of the pinball business? .:)..'.•. ;;
Mr. Elkins. I felt that it did.
89330 — 57 — i.t. 1— — 15
(-■
220 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Mundt. Did you hear the testimony of the previous wit-
ness, Mr, Elkins ?
Mr. Elkins. Yes, sir, I did.
Senator Mundt. Can ^^ou clear up for me this business of Mr. Terry
apparently being in the union a little while in 1954 and then being out
for several months and then coming back ? Can you shed any light on
that ?
Mr. Elkins. When they started fighting Mr. Terry, it seemed like
some years previous, when they were looking through their books, the}''
found out that he personally held a union card, so they immediately
had him take a withdrawal card. That was what was told me, sir.
Senator Mundt. That was part of the plan by which Acme was go-
ing to move into the business, but they had to get rid of Terry's union
membership, is that correct ?
Mr. Elkins. That is correct, yes.
Senator Mundt. And he held that previous to the plans developed
about Acme?
Mr. Elkins. Yes. I don't know how long Mr. Terry had held this
union card, but when they started fighting him about the union, they
got to looking around and found out he already had a card.
Senator Mundt. It is your assumption, then, or you presume, and
perhaps you know, that, when they readmitted him in 1955, that was
as a consequence of something that Mr. Brewster must have said to
Mr. Crosby?
Mr. Elkins. That is correct.
The Chairman. You may stand aside, for the present.
(Members present at this point: The chairman. Senators Kennedy,
McNamara, and Mundt.)
The Chairman. Mr. Stan Terry, please come forward.
Senator Kennedy. The international's office reports there are 892
locals, of wliich 113 are in trusteeship, representing 12.6 percent, and
24 joint councils, of which 2 are in trusteeship, representing 8.3 of the
total.
The Chairman. Do you 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. Terry. Yes ; I do.
May I please request of the chairman, please, that I think it would
be easier on me and on these gentlemen if they didn't take any pictures
during my testimony ?
The Chairman. Yes, sir. That request will be granted.
Gentlemen, take no pictures while the witness is testifying.
Do you wish that to apply to the television ?
Mr. Terry. I will leave that to the discretion of the Chair. I
would just as soon.
The Chairman. All right, gentlemen. Desist from taking any
further pictures.
Mr. Terry. To answer the press, I just prefer that they wouldn't
take pictures, because of the expressions on the face and back and
forth — after all, I think my testimony is rather serious.
The Chairman. All right. The photographers will desist.
Mr. Terry. Besides that, I think you have the pictures you want.
IMPROPER ACTIVITIES IN THE LABOR FIELD 221
TESTIMONY OF STANLEY G. TEERY
The Chairman. Mr. Terry, will you state your name, your place
of residence, business or occupation ?
Mr. Terrt. My name is Stanley Terry, 1-151 Northeast Alberta,
Portland, Oreg.
The Chairman. State your business or occupation.
Mr. Terry. I am in the amusement-game business and have been
so for more than 20 years.
The Chairman. In Portland?
Mr. Terry. Yes, sir.
The Chairman. You have conferred with members of the staff,
have you ?
Mr. Terry. Yes, sir.
The Chairman. And know generally the line of questions that may
be asked you ?
Mr. Terry. I have been here at these hearings for 3 days, and I
have been listening to the testimony.
The Chairman. You can anticipate pretty well the questions that
we will ask ?
Mr. Terry. Yes, sir.
The Chairman. You do not have counsel. Do you waive counsel?
Mr. Terry. Yes, sir ; I do.
The Chairman. Mr. Kennedy ?
Mr. Kennedy. You have counsel in the room ; do you ?
Mr. Terry. Yes; I have my counsel from Portland, Oreg., who is
observing these hearings so that we can gather what information we
can to take back to Portland with us.
Mr. Kennedy. Mr. Terry, did you always come from Portland,
Oreg. ? Where did you come from originally ?
Mr. Terry. I was born in Dayton, Nev. I went to school in Sac-
ramento. While I was going to junior college there, I was trans-
ferred up to Portland, Oreg., with the Curtis Publishing Co.
Mr. Kennedy. You have lived in Portland how long?
Mr. Terry. I have lived in Portland since about 1932, the best I
can recall, or 1931.
Mr. Kennedy. Wliat businesses have you been in in Portland?
Mr. Terry. The business I have been in in Portland was the Curtis
Publishing Co., new-reader salesman, or supervisor. The Curtis
Publishing Co. at that time guaranteed a certain amount of publica-
tion. It was my job to sell these magazines the last 2 days of sale of
the week.
Then I went to work for a service station when the NRA came
through, and they couldn't afford to pay the boys 15 cents an hour,
the Curtis Publishing Co., but they had to raise it to 35, as I recall
it. I went to the service station and I stayed at the service station
until I got to be what was called budget manager. At that time, about
1935 or 1936, I bought some Hershey vending machines and some
phonogi-aphs and I started in the coin-machine business.
Mr. Kennedy. When did you start in the coin-machine business?
Mr. Terry. While I was working for Cumming's Tire Co.
Mr. Kennedy. About what time was that ?
Mr. Tt^'RRY. Abon<" 1935. as near as I can remembpr.
Mr. Kennedy. What kind of coin machines did you start with?
222 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. Fi\e-cent Hershey-bar machines, phonographs, and
some pinballs, I think, a little later on.
Mr. Kennedy. Some pinballs?
Mr. Terry. Yes.
Mr. Kennedy. When did jou start the pinballs?
Mr. Terry. I started the pinballs as soon as I could.
Mr. Kennedy. About what time was that? When was that, about?
Mr. Terry. Well, as I recall, it was about 1935 or 1936: it conld be.
Mr. Kennedy. Did you have slot machines, too?
Mr. Terry. No ; not at that time.
Mr. Kennedy. When did you start slot machines?
Mr. Terry. Slot machines, I didn't get in the slot machine business,
I don't think, much, until about 1939 or 1940, at the Arrow Club of
Oregon. I took care of the machines there. I took care of the ma-
chines at the Riverside Golf Club and Oswego Country Club for a
while.
Mr. Kennedy. You just had slot machines in Poi-tland ?
Mr. Terry. They just had slot machines at those places, yes. Mr.
Elkins had all the other machines.
Mr. Kennedy. Did you just have slot machines in Portland?
Mr. Terry. Did I just operate? That is the only place I operated
any kind of machines, was in Portland.
Mr. Kennedy. You never operated any machines in Vancouver?
Mr. Terry. No, sir.
Mr. Kennedy. You never operated in the State of Washington?
Mr. Terry. No, sir.
Mr. Kennedy. Where did you get your machines?
Mr. Terry. At the very beginning, the machines came from dis-
tributors in the city. If the prices were too high, you tried to buy
the machines in San Francisco, you tried to buy them in Seattle, you
tried to buy them in Chicago. There are different trading machines
that you buy them out of. If you think you can get them cheaper
somewhere else, you are free to get them somewhere else.
Mr. Kennedy. How many slot machines did you have altogether?
Mr. Terry. Slot machines ? Maybe 20.
Mr. Kennedy. They were all around the city of Portland?
Mr. Terry. I just named the places the slot machines were in.
May I take a minute to edify the committee on the difference be-
tween a slot machine and a pinball? It will take about two seconds.
The Chairman. Yes. We may need that.
Mr. Terry. Frankly, I think the Senate and the House will be con-
sidering soon some legislation on taxes as far as pinball games as
distinguished from slot machines. I would like to make this dis-
tinction hero foi- the benefit of the committee.
A pinball game was born in the years of depression. It was a simple
machine, a board, more or less, with some pins and holes on it, and
the holes were numbered, and a ball, and a i)lunger that shot it. At
the beginning, it was a very simple machine, such as that.
The reason it came into being was because so many people were
iniemployed, I suppose, or hanging around at different grocery stores,
cigar stores, whatever they happened to be, and they needed something
to pass the time with.
These machines in the beginning, some were played for a nickel,
some were played for pennies, some were played for nothing. That
IMPROPER ACTR^ITIES IN THE LABOR FIELD 223
particular type of a machine grew to be what we know as pinball games
of various types now.
It distinguislies itself from a slot machine in this sense, that a slot
machine, from wlien it was conceived, has never basically been
changed. In otlier words, a slot machine is just about the same ma-
chine as it was 20 years ago. It was a gambling device, pure and
simple.
But a pinball machine, as such, is an amusement device. It had to
be changed often, new scores, new ideas for winning, it had to be
changed from 1 ball to 5 balls to 10 balls. It had to have various
means of keeping the players interested.
That is why you had a i)inball that started out years ago as a simple
thing, and today it is a very complicated thing. You can take pin-
ball games of various kinds, run up high scores, odds, one ball, like
you would bet on a horserace, and there are various ways of playing
pinball games. A pinball game as I know it is a particular type of
nuichine of various sorts and in that amusement category other ma-
chines that can be used for the same purpose that some people may
use a pinball game for. That is to win free games and cash them in.
There has been quite a difference of opinion between fellows like
myself in this business and the Internal Revenue Service from the
standpoint — I hope Jack Bennv doesn't lose his show on account of
this.
The Chairman. All right. Let us get down to the facts.
Mr. Terry. I don't know what I am saying that is so funny. But
the Internal Revenue Service has held that a pinball machine or an
amusement device where you cash in free games has been subject to a
$250 tax, the same as slot machines. The Ninth Circuit Court of Ap-
peals, recently, with three men sitting en banc, ruled that that didn't
change the classification of a j^inball game into the classification of
a slot machine. That case now is on appeal to the United States
Supreme Court. I suppose one day a decision will be coming down,
and nuivbe Congress will have to do something about it.
Tliat is the reason why I mentioned it to you, sir.
Mr, Kexxedy. You are finished?
Mr. Terry. Yes, I am.
Mr. Kexxedy. So you have been interested in pinballs since what
year^
Mr. Terry. I have been interested in pinballs, roughly, since 1935,
we will say, or 1937. Take any year you would like to choose. I just
can't recall.
Mr. Kexx'edy. And they are an amusement device, is that right ?
Mr. Terry. Yes, sir. I will say this, that in all the years I have been
in the coin-machine business, wliich includes pinball games and op-
erated slot machines at diffei-ent clubs, that I have done everything in
my power to try to lend dignity and bring the coin machine business
up to a standard where it would be accepted as any other business in
the community.
]\Ir. Kexxedy. But they are essentially an amusement device ?
Mr. Terry. Yes, sir.
Mr. Kexxedy. How many pinball machines did you run in Poi-t-
land, Oreg., in 1954 ?
Mr. Terry. In 1954—
Mr. Kexxedy. In 1953 and 1954.
224 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. 1953 and 1954, I will give you a rough guess, and you
can get the exact amount by writing to the State tax commission be-
cause each game I operated I had to buy a license for, but I would say
it would be between 200 and 300 games.
Mr. Kennedy. And they were essentially for amusement ?
Mr. Terry. Yes, sir.
Mr. Kennedy. What was your income from those games, from these
amusement devices ?
]\Ir. Terry. May I say this : I consider my income on these machines
more or less of a private matter. To just say the amount here so that
it goes from border to border and coast to coast — I will be glad to
furnish this committee with complete tax returns on the money I have
made. When you ask me the money I have made on pinball machines,
the income would be derived from other
Mr. Kennedy. Let me ask you this question. If they are amusement
devices, did you make more than $5,000 from them ?
Mr. Terry. Yes, sir.
Mr. Kennedy. Did you make more than $15,000 ?
Mr. Terry. Yes, sir.
Mr. Kennedy. More than $30,000 ?
Mr. Terry. Yes, sir.
Mr. Kennedy. More than $50,000 ?
Mr. Terry. I would say — I am going to have to say, I guess, stop,
sometime. But I would say I estimate my income at $50,000 or more,
roughly.
Mr. Kennedy. Would you say that it might get up, with these 200
devices of amusement, as high as $100,000 income from these 200?
Mr. Terry. No, sir.
Mr. Ken nedy. You do not think it would get that high ?
Mr. Terry. I don't think so, sii-.
Mr. Kennedy. But it is possible ? It is possible that you would get
an income of approximately $100,000 ?
Mr. Terry. Well, as a rough estimate, as far as I am concerned, if
you want to say yes, I could have made $100,000, yes, but I wouldn't
think so. I will be glad to furnish you with the information exactly.
Mr. Kennedy. But you think it is very possible that you could make
$100,000 from those pinball machines ?
Mr. Terry. If I did, it was a good year.
Mr. Kennedy. And you were also running these slot machines.
When did you stop running slot machines ?
Mr. Terry. I stopped running slot machines when the private clubs
took them out.
Mr. Kennedy. When was that?
Mr. Terry. I think that was about 1942 or so. I would just be
guessing on that.
Mr. Kennedy. Were you also trying to raise the standards of the
slot machines
Mr. Terry. Yes, sir.
Mr. Kennedy. So that it would be a nice profession ?
Were you working on that actively ?
Mr. Terry. I would say this, from this standpoint, that in the Arrow
Club of Oregon, and the Riverside Golf Club, which consisted of a
membership of maybe three or four hundred members, there I was
counting their money, and there I was taking care of their machines,
IMPROPER ACTIVITIES EST THE LABOR FIELD 225
and I will say this, if there was anything in my actions or anything
that I might be doing that would cause them to wonder about my
character or the business that I happened to be in, which was the slot
machine business, I don't think I would have been tliere taking care of
the machines.
Mr. Kexnedy. Did you ever have any machines after the Johnson
Act was passed ?
Mr. Terry. Yes, sir.
]Mr. Kennedy. Some slot machines ?
Mr. Terry. When the Johnson Act was passed, it prohibited the in-
terstate shipment of slot machines, or any parts thereof and, there-
fore, the machines that we had on hand we kept.
Mr. Kennedy. You never brought any machines in from outside?
Mr. Terry. No, sir.
Mr. Kennedy. You are sure of that ?
Mr. Terry. I am positive of it.
(At this point. Senator Kennedy withdrew from the hearing room.)
Mr. Kennedy, That was what, about 5 or 6 years ago ?
Mr. Terry. The Johnson Act, I think, came in about 1950 or 1951.
You could check that to be exact on it.
Mr. Kennedy. Have you used slot machines in Oregon since that
act was passed ?
Mr. Terry. Well, using slot machines in Oregon, yes. At the Oswego
Country Club, they own some machines there of their own.
Mr. Kennedy. I am not asking about the Oswego Country Club.
I am asking about yours.
Mr. Terry. No ; not mine.
Mr. Kennedy. You have not had slot machines or used slot machines
since 1951, that you have had in operation ?
Mr. Terry. No, sir. 1951 ? No, I wouldn't think so. If it was, it
would only be a few. It would be very few, if any. I wouldn't want to
say unequivocally no.
Mr. Kennedy. Are they legal in the State of Oregon?
Mr. Terry. A slot machine as such, no.
Mr. Kennedy. Well, do you operate slot machines, then?
Mr. Terry. I don't operate slot machines, no.
Mr. Kennedy. Do you have any slot machines that are in use in the
State of Oregon?
Mr. Terry. No, I don't.
Mr. Kennedy. I thought you said you might have a few.
Mr. Terry. You asked me if I ran some in 1952, 1 thought.
Mr. Kennedy. In 1952, were they legal in Oregon ?
Mr. Terry. 1952? No.
Mr. Kennedy. Were you operating slot machines?
Mr. Terry. Yes, sir, in the clubs.
Mr. Kennedy. In 1952 ?
Mr. Terry. No, not 1952.
Mr. Kennedy. I thought you just said 1952.
Mr. Terry. You have me a little confused. May I clarify the record
for a minute ?
Mr. Kennedy. Yes.
Mr. Terry. I think in 1942 the clubs took the machines out. They
took them out on the act of the Oregon Liquor Control Commission,
226 IMPROPER ACTH'ITIES IN THE LABOR FIELD
saying that the clubs had to own their own machines. That is when I
stopped doing business. I may have run a few slot machines from
that time until 1952 when the Johnson Act came in.
I never run any machines or bought any machines after the Johnson
Act came into effect.
Mr. Kennedy. Did you run any slot machines aft«r they were de-
clared illegal in Oregon ?
Mr. Terry. Slot machines have been illegal ever since the Oregon
constitution.
Mr. Kennedy. Then have you been operating slot machines in
Oregon since they were declared illegal ?
Mr. Terry. Yes, sir.
Mr. Kennedy. Against the law?
Mr. Terry. Against the law ? A thing that makes a slot machine il-
legal in the State of Oregon, with the exception of one law, is that it
violates the Oregon State lottery law. In other words, you put a coin
in, you take a chance, and you get a prize. There is one other law
that, I think, makes a slot machine illegal in Oregon.
Mr. Kennedy. So you were violating both laws ?
Mr. Terry. In a sense of the word, I guess you would, except on the
lottery law somebody had to ]ilay the machine.
Mr. Kennedy. In raising the pinballs to an ethical profession, did
you have a pinball operators association or distributors association
in Portland?
Mr. Terry. We had an association in Portland, yes.
Mr. Kennedy. What was that called ?
Mr. Terry. It was called the Coin Machine Men of Oregon.
Mr. Kennedy. Did you, from various taverns, require on occasion
a pavment from them of $20 pei- month that they should make into a
fund?
Mr. Terry. No. sir.
Mr. Kennedy. You never did?
Mr. Terry. No, sir.
Mr. Kennedy. Never any kind of a payment like that?
Mr. Terry. We have had in the past, as far as Oregon is concerned,
or as far as Portland is concerned, a very long legal contest with the
city of Portland, and there were times during that legal contest that
we took up donations from our locations, yes.
Mr. Kennedy. So you want to change your answer? You did take
up these collections ?
Mr. Terry. Yes.
Mr. Kennedy. What did 3'Ou do with that money ?
Mr. Terry. That money went into, one time, the circulation of
petitions, or it went into the treasury of the Coin Machine Men of
Oregon.
Mr. Kennedy. Were the various tavern oAvners told at that time
that they should take this $20 "off the top"? Did you ever hear that
expression used ?
Mr. Terry. As far as the money, any money that was taken fi'oiii
anv tavern owner was taken as a voluntary donation.
Mr. Kennedy. As what?
Mr. Terry. As voluntary, as a voluntary donation. The reason it
was taken, as they use the expression of taking it "off the top," was
IMPROPER ACTIVITIKS IX THE LABOR FIELD 227
because if there was $20 in tlie luachiiu', $10 of it would be mine and
$10 of it would be the tavern owner's or the location owner's. So if we
wei'e iroina" to take a donation of '^^u we wouM take it otl' first, so that
he would pay half antl 1 would pay half.
Mr. Kkxxkdy. Did anybody ever declare that money that was taken
off at the top in their income tax return? ; j
Mv. Tkkky. The money that was taken off the top was the money
that went in — if there was, and I would say it was few occasions —
whenever tlie money was taken in, it was put into the treasury of the
Coin Machine or into the leaal fund.
Afr. IvExxEDT. I asked you about income-tax returns, whether any-
body declared that mon&y.
Mr. Tkrry. I don't know about any other people, but I know that
any of the money that I took off' the top I declared the income tax on it,
if I kei)t it.
Mr. Kexxedy. What if it went to the association that you set up ?
What if the money went to that association?
Mr. Tekry. I suppose the association in the books that they had,
with the (TA, 1 suppose they paid their share of the income tax,
although there was an aroument of whether it was a nonprofit orgfan-
ization or not. But the money was all in the books and accountable.
Mr. Kekxedy. Let's say that you took $20 from the tavern owner
and $10 is yours and $10 was his and you had, say, 200 locations. That
is $2,000 a month that you would get, which was off' the top. That
$2,000 that went to this fund, did von ever declare that in your income
tax?
Mr. Terry. I want to straighten one thino- out. If I had 200
locations and I asked them for a donation, 1 would be lucky if I got it
from 10. But, however, that money was handled, I handled that
money if I handled it and 1 doubt if 1 handled it, the collectors wotdd
handle it or the other operators, about 65 other operators in the city,
whatever way that money was handled, as far as I was concerned, it
was handled as far as the "rules and regulations of the Internal Revenue
is concern.ed.
Mr. Kexxedy. AVhat does that mean?
Mr. Terry. That means we complied with everything that the Inter-
nal Revenue has.
Mr. Kexxedy. Let's say for one moment you got $500. Did you
declare that money in your income tax?
Mr. Terry. If it went to my income.
Mr. Kexxedy. If it went into this fund?
Mr. Terry. If it went into the association, yes, it was declared.
Mr. Kexxedy. In the association income tax ?
Mr. Terry. Yes, sir.
Mr. Kexxedy. Did you declare it in your income tax, too?
Mr. Teiu^y. I wouldn't ]:)ay it in mine, if I didn't get it.
Mr. Kexxedy. You didn't declare that, even though it was from
your location?
Mr. Terry. If I collected the money from my locations and it was
collected to go to the coin machine association, I would turn the money
over to the coin machine association and they would pay the income
tax or make a record of it.
Mr. Kexxedy. Tell me this: Did the association ever pav a tax on
it?
228 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. The association, as far as their income tax was con-
cerned, was in this position, that they made application when they
were first formed to be a nonprofit organization. A few years later,
I don't know what the year was, the Internal Revenue came around
and said they wanted to audit the books and I guess they went through
the books.
I don't know just how that stands as far as Internal Revenue is con-
cerned and the money that the association spent.
Mr. Kennedy. Tell me this : Instead of doing it in that manner, say
that you received, or this Portland pinball association wanted, a dona-
tion from each distributor of $1,000. Would you have had to declare
the income tax on that $1,000 when you originally received it?
Mr. Terry. In that particular case, if they wanted $1,000, in other
words, if they said they had an attorney bill or had whatever the}''
wanted the money for, and wanted $1,000 and I made a donation of
$1,000, I wrote out a check for what it was.
The Chairman. The Chair will announce that they are trying to
get a live quorum in the Senate. That means we will have to recess for
a little while, anyway, to go over there, and by the time we do that and
return it would probably be too late to resume.
Therefore, we will have to recess until 10 o'clock in the morning
and Mr. Terry will return at that time.
(Whereupon, at 4: 37 p. m., the committee recessed, to reconvene at
10 a. m., Friday, March 1, 1957.)
(Members present at the taking of the recess: The chairman. Sen-
ator McNamara, and Senator Mundt. )
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR 3IANAGEMENT FIELD
FRIDAY, MARCH 1, 1957
United States Senate,
Select Committee on Improper Activities
IN THE Labor or Management Field,
Washington, D. G.
The select committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the Caucus Room of the Senate Office
Building, Senator John L. McClellan (chairman of the select com-
mittee) presiding.
Present: Senator John L. McClellan, Democrat, Arkansas; Senator
Pat McNamara, Democrat, Micliigan; Senator Joseph R. McCarthy,
Republican, Wisconsin; Senator Karl E. Mundt, Republican, South
Dakota; and Senator Barry Goldwater, Republican, Arizona,
Also present: Robert F. Kennedy, chief counsel to the select com-
mittee; Jerome Adlerman, assistant counsel; Alphonze Y. Calabrese,
investigator ; and Ruth Young Watt, chief clerk.
The Chairman. The committee will be in order.
(Present at the convening of the hearing were Senators McClellan
and Goldwater.)
The Chairman. Mr. Terry, will you resume the stand, please?
I believe Mr. Terry requested that no pictures be made of him while
he was testifying, no flash pictures, and I am sure the photographers
remember that, as well as the Chair, and will be governed accordingly.
Before we proceed with further interrogation of the witness, the
Chair has received and thinks it should be disclosed and possibly made
a part of the record, a telegram from Arden X. Pangborn, editor of
the Oregon Journal, Portland. This relates to a document that was
referred to here yesterday that was unsigned, but it lias on the back
of it, "Oregon Journal Analysis of the Vice Situation in Portland."
Since that document was referred to and quoted from yesterday, and
the witnesses interrogated about it, I think it is only fair to the editor
of the Journal that this telegram be inserted in the record. It is ad-
dressed to me as chairman of the committee, dated February 28, 1957.
It has just come to the attention of the Oregon Journal, through a Washington
dispatch, that a document described as "The Oregon Journal Analysis of the Vice
Situation" is in the hands of your committee.
The Oregon Journal has not seeu any document so described nor has it au-
thorized the release of any such document. The Oregon Journal has prepared no
written analysis of the vice situation for publication other than that which has
heretofore appeared in its regularly published editions.
The dispatch links the name of an Oregon Journal reporter with the document.
This will be investigated and such appropriate action taken as the circumstances
may require.
(Signed) Arden X. Pangboun.
Editor, Oregon Journal, Portland, Oreg.
229
230 IMPROPER ACTIVITIES IN THE LABOR FIELD
Some of the press and others have inquired from time to time regard-
ing the program of the committee for the rest of the week. The com-
mittee will continue throughout the day. At the conclusion of hearings
today, it is now the intention of the Chair to adjourn over until Tues-
day morning of next week.
AH right, Mr. Counsel.
Mr. Kennedy. We have here, Mr. Chairman, a chart entitled.
"Principals in Portland Hearings," and that has been described in var-
ious newspapers throughout the country as the principals in the vice
hearing.
Some of the individuals on that list have nothing to do with the
hearing except to present a statement of fact. They are not involved,
as far as our investigation, except their name comes into the hearing
and they have some information that will be helpful. They would
like to have this kind of a statement made at the hearing so that the
record will be clear.
The Chairman. Are you identifying the witness ?
Mr. Kennedy. Mr. John Kelley, who is a Portland real estate dealer,
was described as a principal in the vice hearing, and Mr. Sloniger,
who is a Portland attorney, also had himself described as a principal
in the vice hearing.
The Chairman. I hope the press will not gain the impression, or
labor under any illusion, that everyone Avho is connected with this
hearing is involved in some kind of vice activity. After all, we
have some Senators and very fine reputable people on the stall' who
are only connected with it in an official way.
All right. Let us proceed.
TESTIMONY OF STANLEY G. TEHRY— Resumed
Mr. Terry. May I make one statement. I prefer to have no pic-
tures taken, and I thought I made that clear yesterday.
The Chairman. That is the order of the Chair.
Mr. Kennedy. Did you want to say something ?
Mr. Terry. Just that, sir.
Mr. Kennedy. We were talking yesterday about your pinball ma-
chines.
Mr. Terry. Yes, sir.
Mr. Kennedy. Now, do you have these pinball machines operating
now?
Mr. Terry. Pinball machines operating now in the city of Port-
land; no, sir. I have some pinball machines in operation around
the citv proper, because they are still legal in the State of Oregon.
Mr. Kennedy. They are still legal there?
Mr. Terry. Yes, sir.
Mr. Kennedy. And you have some of these pinball machines operat-
ing in Multnomah County ; do you not?
Mr. Terry. Yes : I do have.
Mr. Kennedy. Do you receive any monevs from the proprietors of
those taverns, or wherever you have the machines ?
Mr. Terry. Machines are placed in locations in different parts of
the State of Oregon, and used to be in the city of Portland, of which
we fjet a. percentage of what the machine makes.
Mr. Kennedy. You get a percentage of what the machine makes?
IMPROPER ACTIVITIES IN THE LABOR FIELD 231
Mr. Terry. Yes, sir.
Mr. Kennedy. Are they all nickel machines, for amusement?
Mr. Terry. Yes, sir.
Mr. Kennedy. They are all nickel machines^
Mr. Terry. Yes, sir.
^Ir. Kennedy. You do not have any dime chutes ?
Mr. Terry. No. OHliand I would not say I had any dime ma-
chines. If tiiere are dime machines there may be 1 or 2 if any.
Mr. Kennedy. Do you have any quarter chutes ?
Mr. Terry. No ; I do not.
Mr. Kennedy. Do you think that you might have some dime
chutes?
Mr. Terry. There may be 1 or '1 machines on dimes, althouj^h I
doubt it very much.
Mr. Kennedy. You do not knoAV that \
Mr. Terry. I wouldn't be able to say for sure now without checking
my records or calling my office, if you would like to have me do it.
Mr. Kennedy. They put money in those machines and then it is
just for amusement, is that right ?
^Ir. Terry. Yes ; it is.
Mr. Kennedy. Does anybody ever put money in the machines and
get any money fiom the proprietor of the tavern ?
Mr. Terry. I would say this : If you let me analyze how a fellow
plan's a pinball machine, including shuffleboard or shufflebowler or
anything else in the amusement field as far as being coin operated is
concerned, it works on this theory.
A fellow, with the use of skill or the way he shoots the ball, or the
way he shoots the puck or bowls the ball in a bowling alley, in most
machines if he attains a certain score he wins a number of free
games.
If he wins, we will say 10 free games, and the player had to go
back to Avork at 1 o'clock he would turn to the location owner and
say, "I have 10 free games in your macliine and I would like to convert
them into nickels so I can come back and play them later." Then they
get money foi- cashing in free games.
Mr. Kennedy. Oh. But that is how it operates.
Mr. Terry. Yes ; it does.
ALi'. Kennedy. Now, you were talking yesterday about this associa-
tion that you had.
Mr. Terry. Yes. sir.
Mr. Kennedy. Let us just go back to these pinball machines. Is
the slieritf in charge of those pinballs? That is in his jurisdiction, is
it not, in Multjiomah County ?
Mr. Terry. Yes: it is in charge of the sheriff in that county, as far
as the sheriff being in charge of everything that is in the county,
ves, the same as automobiles are or anv other thing that mav be in the
county. The sheriff' is the police officer of the county.
Mr! Kennedy. Do vou have much to do with the sheriff's office?
Mr. Terry. Do I have much to do witli tlie sheriff' and the sheriff's
office I
Mr. Kennedy. Yes.
Mr. Terry. No, sir.
Mr. 1'Cennedy. Do you know many people in the sheriff's office?
Mr. Terry. I know some people in the sheriff's office; yes, sir.
232 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Do you have much to do with them in a business
way ?
Mr. Terry. No, sir.
jMr, Kennedy. You just know them socially ?
Mr. Terry. Portland is a town of
Mr. Kennedy. I am talking about Multnomah County.
Mr. Terry. The sheriff's office is in Portland and in that size of a
town, living there for 20 years, you get to know a lot of people. I do
know some people in the sheriff's office.
Mr. Kennedy. Have they ever come around to any of your locations
in Multnomah County, anybody from the sheriff's office?
Mr. Terry. That I couldn't answer.
Mr. Kennedy. Do you know Merrill Kilman in the sheriff's office?
Mr. Terry. Merrill Kilman ?
Mr. Kennedy. Yes.
Mr. Terry. Yes ; I knew him, or let us put it this way, some years
ago. Whether he is alive or dead I don't know.
Mr. Kennedy. How about Earl Stanley; do you know him?
Mr. Terry. Yes ; I know Earl Stanley.
Mr. Kennedy. And Gordon Oborne.
Mr. Terry. Gordon Oborne, I don't know.
Mr. Kennedy. You do not know him ?
Mr. Terry. No.
Mr. Kennedy. But you think there are half a dozen or so that
you might know in the sherift''s office ?
Mr. Terry. I woud say tliat there may be even more than that,
peo})le in the sheriff's office who I might be able to know by name.
Mr. Kennedy. They have jurisdiction over these pinballs, is that
right?
Mr. Terry. As I said before, they have jurisdiction over all activities
or all things in the county, in the sense of the word that they are
police officers.
Mr. Kennedy. If they found any gambling going on, it would be
their responsibility, would it not ?
Mr, Terry. If they had evidence of gambling going on, I assume
that it would be their responsibility to stop it.
Mr. Kennedy. If they reached a decision that this was a gambling-
device it would be their responsibility to stop it, would it not?
Mr. Terry. If they reached a decision that the pinball machines
were a gambling device ?
Mr. Kennedy. If they saw gambling going on at this machine, and
it was sometliing other than amusement.
Mr. Terry. Well, you are asking me two questions. One question
you ask me is if they decided that a pinball game was a gambling de-
vice. I want to say on behalf of that, that tlie Oregon Supreme Court
has ruled that a pinball machine is not a gambling device.
Mr. Kennedy. What if they found there was gambling going on in
connection with the machine ?
Mr, Terry. If they saw gambling going on in connection with any-
thing, just flipping a coin, I think that they would be duty bound to
arrest them for gambling.
Mr. Kennedy. That is in the sheriff's jurisdiction ?
Mr. Terr^ . Yes, it is.
IMPROPER ACTIVITIES IN THE LABOR FIELD 233
Mr. Kennedy. Now, did you know a sheriff by the name of Eric
Caldwell?
Mr Terry. Xo, sir. Not that I can remember or know about.
Mr. Kennedy. About 5 or 6 years ago.
Mv. Terry. No, sir ; I can't recall the name.
Mr. Kennedy. You never heard of him ?
Mr. Terry. No, sir, not that I can remember.
Mr. Kennedy. You never heard of the sheriff, Eric Cakhvell ?
Mr. TERiiY. Not that I can remember, sir.
Mr. Kennedy. About 1948 or 1949.
Mr. Terry. I cannot remember that, sir.
Mr. Kennedy. You never heard his name ?
Mr. Terry. I say this sir: I am here to do one thing and that is to
tell the truth and the whole truth and if I can remember his name, I
would tell you but just now I cannot remember his name.
Mr. Kennedy. Now, on tliis association, you say that the contri-
butions to the association that were made by the various pinball op-
eratoi« are all voluntary ?
]Mr. Terry. Yes.
Mr. Kennedy. Did you ever know or ever learn that any tavern
was closed np when they would not make these contributions?
Mr. Terry. No, sir, I don't know of anything like that.
Mr. Kennedy. You never heard of that ?
Mr. Terry. I never heard of that.
Mr. Kennedy. You never gave those instructions that a place would
be closed up if they did not make the contribution ?
Mr. Terry. I never gave those instructions and furthermore, that
1 never thought about giving that kind of instructions.
Mr. Kennedy. It was all voluntary, is that right ?
Mr. Terry. What are you speaking of now ?
Mr. Kennedy. This contribution off the top that these tavern
owners had to make to this association.
Mr. Terry. Yes, sir.
Mr. Kennedy. Who had charge of that money that went to this
association?
Mr. Terry. Yesterday you asked me about this question again and I
have been trying to refresh my memory on it so I could give you as
honest an answer as I could. As I say now, I am here under oath, to tell
you the truth, the whole truth and if I can remember, there was maybe
2 or 3 times that such a thing was done and at that particular time
for whatever it was done and whoever was in charge of dispensing
the money, the money went there.
Now, as a particular instance, I will say that we circulated an initi-
ative petition and we circulated a referendum and in those cases I
think we asked the tavern owners to voluntarily give some money for
the expenses necessary to circulating the petition, such as first writing
the petition and presenting it to the council and getting it printed and
circulating the names and passing them out and getting them in and
counting them and a few things that go along with it.
Now, that is a particular case of where we have collected money
from tavern owners and also on that particular occasion money went
for that certain fund.
234 IMPROPER ACTIVITIES IN THE LABOR FIELD
^^^ Then, if there were any other cases they were handled basically in
that manner and I cannot at this time remember any other times when
it was done, but it was done on a voluntary basis in that manner.
The Chairman. You testified yesterday about taking money off the
top and gave us a pretty good explanation of what you meant by
taking money off the top.
As I understood you, it was to make these donations wherever you
had a machine, if you could persuade the owner of the place of business
to do so. He had half of the profits of the machine and you had half,
as I understand it.
You would take out of the machine, say, $20 and that would go into
the fund. Half of it would be your mone}^ and half of it being his.
Did you record in your income tax that $10 that was yours and report
it?
Mr. Terry. Yes, in this way : In other words, if I got the $10, we
will say — —
The Chairman. Not "if you got it, but it went in the machine.
There is no question whether you got it but what did you do after you
got it ? If you took it off the top, did .you re])ort it as income ?
Mr. Terry. Sir, a machine, if we went into a location in this ]);irticu-
lar instance on the initiative petition, there was $20 in the machine.
Then, the location, and each place where we have machines we might
say there is $20 in the machine, and the merchant there would say,
"Yes, there is $20 in the machine, luit it didn't work or I had to give
him some money to go in with him and play it and so. therefore. I have
an expense account of say $15."
When we go in and take $20 ofi' the top, that would leave a $10
profit there. Then, we would give liim $5 to add to his deal and give
him a receipt and he donated $r>.
The Chairman, What did you do Avith your part of it? You di<l
not have to give yourself a receipt? You got half of the money?
Mr. Terry. I got half of the money.
The Chairman. When the money goes in the machine, half of it is
3'^ours, is that correct ? ' ' "
Mr. Terry. Xo, sir.
The Chairman. AYhen do you get your half?
Mr. Terry. I get the half when tlie merchant gives me my half,
and after he deducts what he thinks a fair share as far as the machine
not working or whatever happens to go wrong with it.
The Chairman. As I understood you yesterday, you got half of it
and the man who had the machine gets half. If that is not correct,
what is correct? ' ■
Mr. Terry. What is correct, sir, is this: If I go in with a machine,
and I will go over this again — I admit it is confusing — 1 go into a
machine and there is $20 in the machine. The first thing the mer-
chant does to me or to my collector is say that, "I have a $10 expense
against that machine."
The Chairman. What kind of expense would that be?
Mr. Terrv. The expense would be the machine did not woi-k, oi-
did not register the free games at a proper time, when the player
plaved it.
The man was supposed to win 25 games and he would say to the
proprietor, "The machine didn't register the 25 games," and the pro-
IMPROPER ACTIVITIES IN THE LABOR FIELD 235
prietor had to sive him tlie money for the 25 games so he could keej)
playing.
- The proprietor would also say to me that, ''The customer came in
and he wanted to play a few games and he asked me if I would go half
w ith him." In othei- words, they would play *1 a |)iece on the machine.
The C'liAUiMAX. (Taml)ling, you mean ^
Mr. Terry. Sir^
The Chairman, (rambling a dollar on each game ^
Mr. Tf.rrv. Xo. sir.
The Chairman. All riglit, straighten it out.
Mr. Tkrrv. Let us say that the tavern owner, that is the owner of
the location, has maybe one customer in his place. So the one cus-
tomer there says, 'T would like to play the pinball machine,"' and so
he goes over and plaj-s and maybe puts in 2;") cents.
Then, he says to the proprietor, "It's not so busy in here. I would
like to Inn-e you play with me. Let's each go 25 cents apiece and see
hoAv many fi-ee games we can win." So the [)roprietoi- would )>ut in 25
cents and the player would put in another 25 cents.
Then, when I went around to collect the machine, lie would want his
25 cents back.
The Chairman. You have no Avay of checking up on that, whether
he is telling the truth or not ; do you ?
Mr. Terry. No, sir.
The Chairman. Then, after he makes his deduction, what do you
do with the money t
^\y. Tei{RY. After he makes the deduction, the money is brought
into my office and made an accounting for, and put in the bank.
The Chairman. This is what I wanted straightened out and you
know what 1 am driving at. It is just as simple as this. You take
monev out of the machine and give it to a fund; do vou iiot'^
Ml-. Terry. Yes, sir.
The CHAir.MAN. That is what you said yesterday.
Mr. Terry. Yes, sii-.
The Chairman. Do you account foi- your half of that money, and
if so, how? Do you have any books that show where you recorded
that half of the money that was taken out and jjaid over to this fund?
Mr. Terry. Li the cases where the money was taken out
The Chairman. Li any case, where you go in there and take it off
the top, as you say, you go in there and you take $10 or $20 out to give
to this fund. Dalf of it would be yours and half of it belongs to the
proprietor of the ])lace. Do you have any records where you account
for that $10 or your j)art of that money a*^ income?
Ml-. Terry. 1 have said this before, I think, and I will say it again,
that any moneys that are taken out of the machine are properly iden-
tified and taken care of.
The Chairman. Do you have a record that will show this top take-
off money ? Do you have a record and have you kept a record that will
show it?
Mr. Terry. "Well, sir, we have a record of every time. As far as
the funds being taken, there is a record of that. I am sure.
The Chairman. Where ? Do you have a record of it ?
Mr. Terry. No, I don't have a record.
89330—57 — pt. 1 10
236 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Do you keep a record of it in your books 2
Mr. Terry. Of the money that I take off the top ?
The Chairman. Of money that is taken off of the top of those ma-
chines, and given to a fund.
Mr. Terry. Mr. Chairman, I say this, that what I am trying to tell
you is this : If we go into a place
The Chairman. I do not need all of that going back over another
place. You know you took the money out of the machine or what-
ever it is, money off the top. What I am asking you is this : Do you
have any record, or did you keep any record, of your part of that money
and do your records reflect that fact.
Mr. Terry. Yes, sir.
The Chairman. You can answer "yes'' or "no."
Mr. Terry. Yes, sir.
The Chairman. Can you produce such records ?
Mr. Terry. I am not sure.
The Chairman. I think that they may be important.
Mr. Terry. Well, sir, that is what I am trying to straighten out, if
you will just indulge with me a moment.
The Chairman. I will indulge you.
Mr. Terry. As I said, the money that the merchant has, there is $20
in the machine and he said he had a $10 expense account against it.
That left $10 for us to take off the top. Half of that money is mine and
half of that money is his. So we took $5 oft' the top and that $5 I added
to his $10 and I in turn gave him a receipt that he paid to this fund $10.
The Chairman. When he only paid $5.
Mr. Terry. He gave me $5.
The Chairman. But you had $5 of your own and then you gave him
a receipt for $10, receipt for your own money.
Mr. Terry. I guess you would call it receipt for my own money.
Now, here we have $10 profit, sir, and we are going to take $5 off the
top, so I give half of that $5 which is mine.
The Chairman. According to you, that is right.
Mr. Terry. It should be mine after he has deducted his expenses.
So I give him $2.50 and add my $2.50 and I give him a receipt for $5
and he donates the $5 to the fund.
The Chairman. Did he donate all of that $5 ? Hadn't you donated
$2.50 of it, according to your own calculations.
Mr. Terry. Actually, I have donated $2.50.
The Chairman. But you gave him a receipt for the $2.50 you
donated.
Mr. Terry. No, I gave him «, receipt for $5 that he donated and that
merchant donated $5 to the fund.
Mr. Kennedy. Who keeps the fund or who keeps that money ?
Mr. Terry. As I said before, that has only been done on 1 or ?i
occasions.
Mr. Kennedy. But who keeps the money? You have said that
before, but who keeps the money ?
Mr. Terry. Then, if it was for a fund for an initiative petition,
then whatever committee is running tluit petition, they keep thp*
funds and they get the money.
Mr. Kennedy. "WHiat do you actually do with the money? Does ^^
go in a bank ?
Mr. Terry. Yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 237
Mr. Kennedy. What bank were you putting it in ?
Mr. Terry. I don't know. I can't recall what bank they put it in,
but they put it in a bank.
Mr. Kennedy. "Who put it in the bank ?
Mr. Terry. The committee that circulated the initiative petition
or the referendum petition.
Mr. Kennedy. Who was the head of the committee?
Mr. Terry. On the referendum connnittee, I think the head of the
referendum committee was Bob Ringo, a druggist.
Mr. Kennedy. That is not what we asked. Who is the head of the
committee, the person who kept this money?
Mr. Terry. I just was trying to name you the committee.
Mr. Kennedy. You said the referendum committee, and w^ho was
head of the committee tliat kept this money? Did you?
Mr. Terry. Xo, sii*.
Mr. Kennedy. AYas the money turned over to you?
Mr. Terry. No, sir.
Mr. Kennedy. You never had possession of it ?
Mr. Terry. No, sir.
Mr. Kennedy. Who did ?
^Ir. Terry. I am trying to explain. In the referendum committee
it was Robert Ringo, a druggist, w^as the chairman of the committee
and I think Gus Rinella, wdio was a real-estate man was the secretary
and I can't remember who was the treasurer. It could have been
Lloyd Kilder.
Then, in the initiative petition, I think Mike Healy, who was a
])inball operator was the chairman, and my secretary was secretary
and there was a third person on that committee. I cannot remember
the third person, but I can get the name for you. That committee
would be responsible for all of the money.
The Chairman. JNIr. Terry, when you gave a man a receipt for his
contribution to it, you got tlie money from that man, did you not?
Mr. Terky. You mean personally?
The Chairman. When you gave him a receipt for it, did you not
see that you got the money?
iSIr. Terry. Yes.
The Chairman. Now, what did you do with the money that you
gave receipts for and what did you do with that money?
Mr. Terry. I turned it over to this committee and they put it in
the bank.
Tlie Chairman. What committee, w^ho? Name the person you
turned it over to. ^'ou cainiot turn it over to a committee. You
either wrote a check for it or you did something to get it there.
Mr. Terry. I^et me say I tui'n over to one of three people who made
up tlie committee.
The Chairman. Can you not remember ?
]VIr. Terry. At this time I cannot remember who I turned it over
to.
The Chairman. Did you give it to them by check ?
Mr. Terry. No, I don't think that I gave it to them by check. There
may be a check involved, Init there would be no way to issue a check.
The Chairman. It would be very easy to do that. You go around
to your machines and you collect $100 that day for the fund and you
get the money and you give a receipt and you could very well give a
238 IMPROPER ACTIVITIES EST THE LABOR FIELD
cheek for the $1(»0 to the cluiirnum of this chib or tlie treasurer. Did
you handle it that way ?
Mr. Terry. No, sir.
The Chairmax. How did you l)andle it? You fro in here aud you
^et $10 and vou come out of theie and you give them a receipt that
you got $10. What do you do with the $10 ?
Mr. Terry. I take the receipt and the $10 and I give it to the com-
mittee.
TheCjiAiRMAx. Who?
Mr. Terry. One of three members who were on the committee, I
just named them.
The Chairman. All right.
Senator Goldwater. I would like to pursue this a little bit further
because it presents quite an interesting problem. You, as I understand,
give the merchant a receipt for $5 when actually all he gets is $2.50
out of that ? Is that substantially what you said ?
Mr. Terry. On what receipt, sir?
Senator Goldwater. When you go in to collect and you take off
the top.
Mr. Terry. Yes.
Senator Goldwater. xVnd you testified, I believe, that you give this
merchant a receipt for $5 when actually he is only giving $2.50. I
think that you testified to that.
Mr. Terry. That is basically it, yes, I think.
Senator (ioldwater. How does the merchant handle that on his
income tax ? In other words, how do you get a nuin to agree to pay
income tax on income that he never got ?
Mr. Terry. Well, the same way as far as he is concerned. He do-
nates $5 or $10 or $15, and I assimie that he paj^s income tax on it.
Senator Goldwater. You think that a man is willing to pay income
tax on income that he did not get and is there some agreement that
you have with him that he gets that back some way ?
Mr. Terry. No, sir. If you wei'e in business, sir
Senator Goldwater. I am. That is why this interests me, because
as a businessman I would not want to pay income tax on income I did
not get, unless I had some deal worked out on it.
Mr. Terry. All right.
Senator Goldwater. That is what I want to find out, if there is
any deal on it.
Mr. Terry. I will try to answer tliat (juestion to the best of my
ability. If you Avere in the tavern business and a part of your tavern
business was income from pinball machines, you knew that you only
had one chance of keeping those pinball games and that was circulat-
ing a petition.
So then I. or any one of 55 other operators, came to you and said,
''Senator, we are going to circulate a petition. We do not have
enough money for four individuals to do it and we have to get in
collectively and gather up some money to circulate a petition and it
will cost X number of dollars.''
So I say to you. "On your payouts today, you are charged $10
over tliere." Well, take $5 oil' the top and add it to the ]^ayouts, and
you donate $10 or $5 or wliatever the case may be to this fund. I
"assume that you understand that you have to pay income tax on it.
LVIPROPER ACTIVITIES IN THE LABOR FIELD 239
But I think under those conditions you would be Avillin<j- to donate
tlie $10 and |)ay the income tax on it.
Senator (toldwatei;. Does this practice «:o on whethei- there is a
petition *roin<x around or not (^
Mr. Tei;ky. No, sir; very definitely not.
Senator (toldwater. The only time you have given this man a
receipt for mone}' that he did not get was during the period when
you were circulating ])etitions?
Mr. Terry. "When we circulated petitions, yes.
The Chairman. I have just one other thing. I am not at all
satisfied. You bear in mind, and I trust those who are present will
bear in mind, that this conunittee is not only looking into labor rack-
eteering, but if businessmen are in collusion to defraud and to cheat
on their income and so forth, in connection with anything related to
laboi-. we are going to find it out if we can.
I am interested in those books. Who has the books of that club or
that association (
Mr. Terry. Sir
The Chairman. Where can we get them ?
Mr. Terry. Sir, I am here undei- oath to tell you the truth.
The Chair^fax. I have heard that several times and I expect you
to tell the truth. Just go ahead and tell me where those books are.
ISIr. Terry. Sir, I don't know where the books are.
The Chairman. Who has them t Who ever had them i
^Ir. Terry. Sir, the people who are members of that conunittee have
the books or Avere in possession of the books or should have l)een in
possession of the books and I am sure if you want the books we AA'ill
get the committee or the members of the committee and get the books.
The Chairman. Would you tind out where those books are ?
jNfr. Terry. I think so.
The Chairman. You do that at recess. You have your fi-iends out
there, and you know who was handling it and I want you to try to
find out from this committee where those books are.
Mr. Terry. Sir, I cannot say that during the recess I can try to find
out where the books ai'e.
The Chairman. You will be here long enough to get that.
Mr. Terry. If you will let me go back to Portland, I can do a better
The Chairman. If you cannot get them before you go back, we will
give you tluit assignment when you go back and you will have the job
of finding those books.
Mr. Kennedy. Let me ask you about those books. You kept books,
did you not ?
Air. Terry. 1 kept books ?
Mr. Kennedy. Did anybody keep books ?
Mr. Terry. The committee kept books.
Isiv. Kennedy. Tell me tliis : Have these books ever been changed, the
records (
Air. Terry. No, sir.
Mr. Kennedy. None of the minutes of your meetings of the coin
operators have been changed I
Mr. Terry. Not so far as I know.
Mr. Kennedy. You never took out any of the records and rewrote
the minutes of any of the meetings ?
240 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. Not I, sir.
Mr. Kennedy. Do you know if anybody ever did I
Mr. Terry. I assume that Al Brown one time on the minutes or
meeting notices of one of our minutes retyped them to make them more
factuah
Mr. Kennedy. How long after the meetings was this done ?
Mr. Terry. Pardon me ?
Mr. Kennedy. Could you explain a little bit ^ You assume that Al
Brown did this.
Mr. Terry. Yes.
Mr. Kennedy. Why do you assume that Al Brown did this ?
Mr. Terry. Mr. Chairman, I feel this way. Tliis is very serious
to me, the statement I just made that brings laughter from the audi-
ence. 1 am trying to do the best I can to explain the facts. That
particular incident, if you w^ant to know about it. I am glad to ex-
plain the Avhole thing to you, even though I am under indictment for
that particular deal.
I will explain the thing to you now fully and it will take 3 or 4
minutes, but I am not trying to take up your time, or do anything
else. If you want me to explain that particular thing, I will explain
it.
The Chairman. Either explain it, or state your reasons why you
will not.
Mr. Terry. Then I will explain it.
The Chairman. All right.
Mr. Terry. The grand jury, if I remember it, subpenaed the books
of the Coin Machine Men of Oregon. Now, the Coin Machine Men
of Oregon is a nonprofit organization in the State of Oregon, I hope,
and they have been set up since 1950 or so.
The meetings that we have are usually informal and no minutes are
kept in the sense of the word of what minutes are. We had a paid
secretary off and on, and this paid secretary would sit there during
the meeting and scribble down a few notes of what had transpired in
the meeting and then maybe sometime at a later date he would write
down on a piece of paper what had transpired to the best of his
memory.
The Chairman. Did they keep a book of minutes ?
Mr. Terry. Whether they kept a book of minutes or not. I don't
know.
The Chairman. It was a piece of paper that you can throw away ?
Mr. Terry. No, he would scribble it down in a little piece of paper
that he could throw away, but from that he w^ould type a page and he
kept that page.
Now, where he kept it, whether it was in a minute book, I don't
know.
The Chairman. It was a permanent record ?
Mr. Terry. A record; yes, sir. So they subpenaed our financial
records and also our minute book, or whatever the record was that
this paid secretary was keeping. It so ha})])ened that the day to de-
liver that to the grand jury, I was coming dowm Sixth Street and he
was walking up Sixth Street and I hailed him from my car.
I said, "Where are you going?" He said, "I'm going to take the
minutes up, the books and records up to the grand jury."
The Chairman. You hailed him or he hailed you ?
IMPROPER ACTIVITIES IN TPIE LABOR FIELD 241
Mr. Terry. I think that I hailed him.
The Chairman. Who was "him" ?
Mr. Terry. The paid secretary.
The CiiAiRMAx. What is his name?
Mr. Terry. Alvin Brown.
The Chairman. All right.
Mr. Terry. So I hailed him and I asked him where he was going
and he said he was going to deliver these books and meeting notes
up to the grand jury and I said, ''Let me see what you have there."
He showed me this book and I started to read some of the pages in
it, and 1 read several and I came to one page that said that Stan Terry
said this and Stan Terry said that. I said, "Al, I must have been
doing an awful lot of talking. Are you sure I said all of this?" He
said, "No, I'm not sure."
And I said, "If you are not sure, make sure who said it. As far as
I am concerned, Stan Terry is the only one talking there." And he
said, "All right, I will change it and I will make it more factual."
The Chairman. Let us have order.
We will stand in recess for a minute.
(Brief recess.)
(Members present at the taking of the recess were Senators McClel-
lan and Gold water.)
(Members present after the taking of the recess: The chairman,
Senators McNamara, Mundt, and Goldwater.)
The Chairman. The committee will come to order.
Mr. Kennedy. You were telling us about getting the books changed.
So you told Al Brown to change the books, did you ?
Mr. Terry. Sir, I didn't sa}^ I told Al Brown to change the books.
Mr. Kennedy. You suggested to Al Brown to change the books?
Mr. Terry. No, sir.
Mr. Kennedy. What happened ? You read the books and found
Stan Terry said this and Stan Terry said that. What did you do
then ? What did 3-011 say to Al Brown i
Mr. Terry. Well, sir, I thought I just said that Mr. Al Brown
showed me these minute notes, and I read the minute notes, and it said
there than Stan Teriy said this and Stan Terry said that, and I asked
him if he was sure.
He said, "No, I am not sure." I said, "Well, then, you better take
my name out and make the thing more factual."
Mr. Kennedy. So you suggested that he change it?
Mr. Terry. I just said I suggested that he change it.
Mr. Kennedy. So he changed it ?
Mr. Terry. That I don't know.
Mr. Kennedy. You do not know whether he changed it or not?
Mr. Terry. I can't say for sure. He told me he did.
Mr. Kennedy. I am afraid that I described Eric in the wrong way,
as a sheriff. He is not a sheriff. Do you know Eric Caldwell?
Mr. Terry. No.
Mr. Kennedy. You never heard that name ?
Mr. Terry. As far as I can i-emember now, I never heard that name.
Mr. Kennedy. That would be within the last 0 months. Have you
ever heard the name of Eric Caldwell (
Mr. Terry. Not that I know of in the last 6 months.
Mr. Kennedy. Have you heard that name in the last year?
242 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Tkrkv. As I recall now 1 liaveirt heard that name in the last
year.
Mr. Kexnedy. You never mentioned that name to anvbodv?
Mr. Terry. Eric Caldwell ?
Mr. Kennedy. Yes. You never tried to find a location for Eric
Caldwell to operate ?
Mr. Terry. Eric Caldwell^ Sir, I have to say I just don't know
the name. I can't remember any name like that.
Mr. Kennedy. Did you know Sheritt' Mike Elliott ?
Mr. Terry. Yes, I knew Sheritl' Mike Elliott.
Mr. Kennedy. How well did you know Mike Elliott ?
Mr. Terry. Xot very well.
Mr. Kennedy. Did you ever make any arrangements to make any
payments to ]Mike Elliott ? '
Mr. Terry. No, sir.
Mr. Kennedy. You and Mr. Dunis did not <>et toorether and each
contribute $5,00l) to Mike Elliott in 19-18 1
Mr. Terry. No, sir.
Mr. Kennp:dv. He later went to the penitentiary, did he not \
Mr. Terry. Who went to the penitentiary?
Mr. Kennedy. Elliott, Sheriti' Mike Elliott. ^
Mr. Terry. I thouofht he went to California.
Mr. Kennedy. That is whei-e he went to the penitentiary. Did you
know that '\
Mr. Terry. No. sir, 1 didn't know he was in the |)enitentiarv. 1
understand or read
Mr. Kennedy. Did he finish his term as sherili?
Mr. Terry. No. sir. He was recalled.
Mr. Kennedy. For what reason?
Mr. Terry. Actually, there were so many reasons about recalling'
him.
Mr. Kennedy. Malfeasance in office?
Ylr. Terry. It could be. 1 remember the first day that Mike Elliott
was elected sheriff, he had a ]3ress conference and during that press
conference he said "The first thinof I am going to do is run Stan
Terry out of town."
Mr. Kennedy. Did he run you out of town ?
Mr. Terry. No, he didn't.
Mr. Kennedy. What stopped him ?
Mr. Terry. I don't know what stopped him.
Mr. KeNxVedy. Do you run any punchboards now ?
Mr. Terry. Punchboards?
Mr. Kennedy. Yes.
Mr. Terry. No, sir.
i\[r. Kennedy. In the city of Portland ?
Mr. Terry. No, sir.
Mr. Kennedy. Anything that is like a punchboarcl ?
Mr. Terry. Yes.
ISIr. Kennedy. Would you tell us about that?
Mr. Terry. There is in the city of Portland the Portland ordinance,
which you heard discussed here, which was passed at the same time
that the pinball ordinance was passed, in 19.51. In 19.51 they pas.sed
an antipinball ordinance, and they [)assed an antipunchboard ordi-
IMPROPER ACTIVITIES IN THE LABOR FIELD 243
nance. Tn that ordinance, they made tlie possession of a punchboard
or a siniihir device ille<;al. 1 think there was a reference here to tliat.
That has never been chanf^ed.
When you run a shuffle bowler, and I assume you know what a
shuffle bowler is — do yon 'i
The CHAiRiiAX. Tiie Cliaii- does not know.
Mr. Terry. May I explain what a shuffle bowler is ?
The Chairman. Briefly.
Mr. Terry. A shuffle bowler is a miniature bowling alley, played
with a puck. It jroes down over some sorts of pins which, in turn,
activate bowling pins, so that the ])layer who plays this game has the
sensation of bowling or the feeling of bowling, and it is played with
a puck. A j)uck is a round object like they i)]ay hockey with in
England.
Isn't that what tliey call a puck 1
Mr. Kennedy. Yes.
Mr. Terry. So on these bowlers, which is like a i)inball game, when
they first came out it was exactly like bowling, in the sense of the
word that you could only bowl a bowling score on it. You could only
bowl 300, with strikes and spares, as in bowling.
But in order to induce the playei-s to play more, as in the j^inball
game, they raised the score on the bowling, so that the bowlers, the
shuffle bowlers, got so that you could not only bowl 800 on it, but in
my particular case, we will say, as an operator, I had a shuffle bowler
that you could only bowl ;>00 on, but then maybe one of my competitors
would bring in a shuffle bowler, and he would say to my customer, the
Senator here
Senator (4ou)Water. Xo, T am not your customer.
Mr. Terry. Excu.se me.
Senator (toldwater. I am not in that kind of business.
Mr. Terry. Excuse me, sir. We will say we have No. 1 customer or
two customers.
Senator Goldwater. I have enough trouble without having a con-
nection with pinball machines.
The Chairman. All right. Let us proceed.
Mr. Terry. Anyway, so my competitor would come to my customer
and .say, "I have a bowler that you can bowl 600 on.'" So my customer
Avould rather have one he can bowl 600 on. So maylie the next week
or 2 weeks afterward.?, I would come in and say. "I have a bowler you
can bowl 3.000 on."
In that way, the scores on these bowlers ran up to fantastic problems
of bowling.
So then this thing that is similar to a punchboard. we would take
when the score got so high, Ave would take a shuffle bowler and say,
"Well. now. my bowler not only bowls to 3,000, but every time a cus-
tomer bowls 310, 6,000, or whatever the score is you want to set up on
it. then I will let him pull a ticket off of this spindle."
It was a spindle or a jar with a lot of numbers in it, so if he bowled
a score of 310. then the customer was entitled to take a ))ull out of this
jar of tickets or off of this spindle.
The Chairman. That was free ?
]Mr. Terry. Yes.
The Chairman. What did he get when he pulled tliat oft"^
244 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. If he pulled it oif , and he got, we will saj', number 100,
then he got an opportunity to write his name — I don't know why peo-
ple laugh. This is actually the way it works.
He got a chance to write his name on another piece of paper that had
100 names. In some cases that was true, and maybe in other cases if
he pulled a ticket otf and got number 100, he got a coffee percolator.
But, usually, I say the thing went on, because then he got a chance to
write his name on a card that, say, had 100 names or 50 names, and on
that card was a seal. When the card became full of names, whatever
number of names it was, 50 or 100, then on a certain night, we will say
on a Tuesday night, when it was quiet in the location, they would an-
nounce "Next Tuesday night we are going to take the seal off and see
who wins the radio, the percolator" or whatever it happens to be.
So all the people who were able to put their name on that card would
gather at the tavern, and we would donate the percolator, or whatever
it happened to he, and it stimulated business in the tavern, and every-
one seemed to enjoy it.
The Chairman. You would call that a lottery, would you not ? It
is nearer a lottery than it is a punchboard ?
Mr. Terry. In a lottery, as far as I understand it, you have to pay
for a chance. Tliis fellow wouldn't pay for a chance.
The Chairman. He paid for something.
Mr. Terry. He paid the bowler.
The Chairman. And to pull the slip.
Mr. Terry. If he got the right score, he got to pull the slip ; yes, sir.
Mr. Kennedy. Do you ever have any of these machines where in-
stead of winning a percolator, you might win some money?
Mr. Terry. There was another idea conceived by one of my com-
petitors.
Mr. Kennedy. I am just asking about you. It might be conceived
by him, but do you have any machines where you get a little money if
you win ?
Mr. Terry. I tried one of these things ; yes.
Mr. Kennedy. Did you find that it worked ?
Mr. Terry. No, sir.
Mr. Kennedy. You do not have any now in operation ?
Mr. Terry. As I say now, I don't know whether I still have it work-
ing or not. I can explain to you how it works, if you would like to
hear it.
The Chairman. Does it work? You can answer that yes or no.
Mr. Terry. In some cases it does work.
The Chairman. In other words, in some cases the man wins some
money ?
Mr. Terry. Yes, sir.
The Chairman. In some cases, most cases, he loses ?
Mr. Terry. Well, he never loses anything.
The Chairman. He never loses. He just buys the privilege of play-
ing the board?
Mr. Terry. Well, he plays the shuffle bowler.
The Chairman. That is right. He buys the privilege of playing the
shuffle bowler ?
Mr. Terry. Yes, sir.
The Chairman. Do you find it more profitable to the player or
more profitable to you as a promoter of it, or whoever promotes it,
IMPROPER ACTIVITIES IN THE LABOR FIELD 245
to increase the score and add these advantages of getting his name
on a piece of paper where it may be drawn and he may get some
money or he may get a radio, a television, or something?
Mr. Tkrry. Sir, let me answer that qnestion this way.
The Chairman. Answer it yonr way-
Mr. Terry. You are familiar with bowling alleys in the United
States, at which there are some 20 million people that bowl.
The Chairman. That is hardly responsive to the question.
Mr. Ti:rry. Yes; it is, in this way, sir, if you will indulge with me
just a minute.
The Chairman. All right.
Mr. Terry. There is not a l)owling alley in the United States, I be-
lieve, to the best of my ability, that does not have on the side of the
bowling alley or in some way demonstrating to the players, that if
they bowl a perfect score they might win a grease job for their car
or they might even get the car. If the high team wins the league,
they might get a trip to Miami.
In other words, as far as bowling, and I don't think there is any
doubt in anybody's mind that bowling is a lot of fun, they stimulate the
play with prizes.
The C^HAiRMAN. I am not questioning that at all. I am asking you
how you operate your own business. We do not have to go all over the
country and find out how everybody else operates.
Mr. Terry. I operate the shuffle bowlers on the same theory.
The Chairman. On the same theory, and you offer inducements for
them to play, and they do get a chance to win something?
Mr. Terry. The same as in a regular bowling alley.
The (^HAiR:\rAN. They might put in a dime or Avhatever the initial
cost is — wht)t is the initial cost ?
Mr. Terry. Ten cents.
The Chairman. They might put in a dime, and might make a score
that entitles them to pull a slip, and that slip gives them another
number and entitles them to write their name, and at a drawing, or
by some other process, they might get a chance to win a television set.
Is tliat correct ?
Mr. Terry. The same as some man
The Chairman. I did not say some man. I said that is correct, is
it not?
Mr. Terry. It is possible, sir.
The Chairman. Has it ever happened ?
Mr. Terry. To win a television set ?
The Chairman. To win a prize.
Mr. Terry. Yes, sir. I just stated that we gave away prizes.
The Chairman. Then why is it necessary to talk about the rest of
the country '. I am just asking you these questions.
Go ahead.
Mr. Kennedy. After the punchboards were illegal, did you have
any machmes wliere for a nickel or a dime or a quarter you would
get a bead out and you would punch through the beads ?
Mr. Terry. No, sir.
Mr .Kennedy. Do you know what kind of machines I am talking
about ?
Mr. Terry. Yes, sir.
Mr. Kennedy. Do you know if they operate now ?
246 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. That particular type of machine concerned was where
I think Mr. Elkins tried to run those machines a year ago.
Mr. Kennedy. What about you ?
Mr. Terry. No, sir.
Mr. Kennedy. You never had anything to do with those machines?
Mr. Terry. No, sir.
Mr. Kennedy. You never had any of those machines ?
Mr. Terry. No, sir.
Mr. Kennedy. Tell me, out of this fund that the coin machine men
had, did they make any political contributions out of that fund?
Mr. Terry. Out of the coin machine men?
Mr. Kennedy. Yes.
Mr. Terry. I would say they could have, and they could not have.
I would say they probably did.
Mr. Kennedy. They made political contributions?
Mr. Terry. Yes, sir.
Mr. Kennedy. And this was a tax free organization? You did
not pay the tax when you got the money and they did not pay the tax
when they got the money, and then you were making political contri-
butions out of that, is that right?
Mr. Terry. In some cases, 1 think we did, sir.
Mr. Kennedy. Mr. Terry, you were having some difficulty with the
teamster union at the end of 1954?
Mr. Terry. Pardon me?
Mr. Kennedy. You were having some difficulty with the teamster
union at the end of 1954?
Mr. Terry. I was having some difficulty with the teamsters union
before 1954.
Mr. Kennedy. You have had some difficulties with the teamster
union?
Ml-. Terry. Yes, sir.
Mr. Kennedy. When did your difficulties Itegin ?
Mr. Terry. Well, I can't give 3"ou the exact date, but I can give you
the incident when it began.
Mr. Kennedy. Approximately what date was it ?
Mr. Terry. Approximately, as near as my recollection is concerned,
it started in 1953.
Mr. Kennedy. Do you want to give us the incident in a few words?
Mr. Terry. Yes, sir ; I was sitting in my office one day, and my secre-
tary said, "There are two gentlemen here that want to see you,'" and I
said, "Fine, show them in." In walked a rather large fellow and
another man and he introduced himself as John Sweeney, interna-
tional organizer of the teamsters union. That is where my trouble
began.
Mr. Kennedy. You could not get along with ,lohn Sweeney?
JNIr. Terry. Yes, I got along fine with John Sweeney.
Mr. KENNED-i'. AVhat did he want? What was the trouble?
Mr. Terry. He wanted me to join the union.
Mr. Kennedy. And you did not want to join ?
Mr. Terry. Well, let's put it this way, sir, I, at the time, when he
called on me, had had previously, for years before, belonged to the
teamsters union, personally.
Mr. Kennedy. So you did not want to join again?
Mr. Terry. Well,sir, he wanted all my men to join.
IMPROPER ACTIVITIES IN THE LABOR FIELD 247
Mr. Kexxedy. You did not want, that?
Mr, Tkrry. I don't think he knew that I belonged to his teamsters
union.
Mr. Kexxkdy. What was the problem? You did not want your
men to join the union ? Is that it?
Mr, Tkkry, There was no problem. I 'don't think anyone wants to
join a union if he doesn't have to.
Mr. Kexnedy. I understand that. So that was the beginning of
your troubles, you did not want your people to join the union?
Mr. Tekry, Yes, sir.
Senator Muxdj'. You said 3'^ou belonged to the teamsters union a
long time before Mr. Sweeney came into your oflice ?
Mr. Terry. Yes, sir.
Senator ]Muxdt. Were you at one time a teamster?
Mr. Terry, Well, sir, in about 1946, I think it M^as, or 1947, the
teamsters made an efl'ort to organize the coin-machine men at that
time, and they had several meetings. During the meetings, some of
the people in the coin-machine business at that time joined the team-
sters union, and their emj:)loyees joined, I among them. At that time,
I had 1 or 2 employees, I think.
As time went by, they gradually dropped out, and quit paying their
dues.
My particular men, they left my em])loy, and whether they kept up
their dues or not, I don't know. I personally kept up my dues. I
sent in the $5 a month, every 3-month ])eriod, and kept up my dues.
Senator Mundt : Did you belong to the teamsters union continu-
ously, then, from 1946 to the present time?
;Mr. Terry. No. sii-. They gave me a withdrawal card sometime in
1954.
Senator Muxdt, Did you request it?
Mr, Terry. Xo, sir.
Senator Muxdt. How did you happen to get it ?
Mr, Terry. I opened the mail one morning and there it was.
Senator ^Iuxdt. That was subsequent to your conference with Mr.
Sweeney ?
Mr. Terry. It was subsequent to several conferences with Mr.
Sweeney.
Senator Muxdt. Mr. Sweeney had endeavored to get you to have
the rest of your members join the teamsters \mion ?
Mr. Terry. Not only my members to join the teamsters union, but
all the fellows in the coin machine business.
Senator Mundt, You were one pereon in the coin machine business.
Why would he come to you to get all of your competitors to join ?
i\Ir. Terry. No, sir. When he came to me in his original inter-
view, he said :
I would like to have you and all the other fellows in the coin machine busi-
ness join the teamsters union.
Senator Muxdt. You could speak only for yourself ?
Ml'. Terry. That is what I told him.
Senator Muxdt. What did you tell him as far as you were con-
cerned ?
Mr. Terry. As far as I was concerned, I had no objection to ioin-
iiig the teamsters union, but I could only speak for myself. If he
248 IMPROPER ACTIVITIES IN THE LABOR FIELD
wanted to talk to the rest of the people in the business, he could talk
to them.
Senator Mundt. Then how did you have trouble with Mr. Sweeney
if he came in and said, "Would you join the union?" And you said,
"Yes." How would that brew up any trouble ?
Mr. Terry. Sir, I guess *we would probably have to qualify it
as a degree of trouble. From that time, from 1953, there was a serious
of meetings, at which we would call a meeting and we would discuss
joining tlie teamsters union, and the health and welfare plan and this
and that, the rest of it that goes along, and then afterwards we would
have a discussion amongst ourselves as to whether we would or would
not join.
Senator Mundt. When Mr. Sweeney called on you that day, you
said he was in the company of another man. You said two men came
in to see you, one of whom was Mr. Sweeney.
Mr. Terry. Yes, sir.
Senator Mundt. Who was the other man ?
Mr. Terry. As I remember the other man was a Tommy Malloy.
Senator Mundt. Tommy Malloy ?
Mr. Terry. Yes, sir.
Senator Mundt. Is that the Mr. Malloy that you saw in the com-
mittee room yesterday ?
Mr. Terry. No, sir.
Senator Mundt. That is not the same Malloy ?
Mr. Terry. No, sir.
Senator Mundt. Tell us some more about Tommy Malloy.
Mr. Terry. Tommy Malloy was introduced to me as being the sec-
retary, I think, of the service station, of the garage people, whatever
local embraces those people.
Senator Mundt. You are sure it could not have been Tommy Ma-
loney ?
Mr. Terry. No, sir, because this Tommy Malloy was about my size
and maybe a little smaller.
Senator Mundt. Mr. Sweeney tried to get you to join the union.
What did he say was the change? How did he try to induce you to
join the union? What did you have to gain by joining the union?
Mr. Terry. I don't know whether it was that particular time — re-
member, this is 1953 — when one of the things that he told mo was
that he had had complaints that my men were dissatisfied, that I was
working them too hard, not paying them too much, and he had had
a lot of complaints, and it was his job to come out and take care of my
employees.
Senator Mundt. So you told him then, "All right, I will join the
union. I will have my men join the union." It that right?
Mr. Terry. No, sir.
Senator Mundt. I thought you told him that as far as you were
concerned, you were willing to join.
Mr. Terry. I told him as far as I was concerned I have no objections
to join the union, if he can convince the other fellows to join the union,
if he can show me that my men were dissatisfied.
Senator Mundt. When you got your withdrawal card by surprise
through the mail, what action did you take then ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 249
Mr. Terry. Well, I don't know whether I took any definite action
or not, but I felt that when I got a check back from the union, that I
was headed for trouble.
Senator Mundt. Did you talk to anybody about it '?
Mr. Terry. I talked to a lot of peoi)le about it.
Senator Mundt. Anybody in the union ^
Mr. Terry. I could have talked to John Sweeney at that time about
it.
Senator Mundt. "Wliat did he tell you ?
Mr. Terry. Well, sir, at that time, John Sweeney wouldn't talk to
me about it. I mean about the union.
Senator Mundt. You went to talk to him and he would not talk to
you ; is that right ^
Mr. Terry. Eight.
Senator Mundt. When did you see him ?
Mr. Terry. Maybe I can clarify that a little bit, sir. During the
time from 1953 to the time that I got the withdrawal card, or maybe
slightly before that, we had had several meetings, and during that
time
Senator Mundt. By "we," you mean you and Sweeney ?
Mr. Terry. No. By "we," I am speaking now of most of the members
of the Coin Machine Men of Oregon.
Senator Mundt. You and Jimmy Elkins ?
Mr. Terry. No, sir. Jimmy Elkins, as far as I was concerned, was
never a member of the Coin Machine Men of Oregon.
Senator Mundt, Was he not a coin machine operator ?
Mr. Terry. Yes, sir.
Senator Mundt. All right. Go ahead.
Mr. Terry. During the time from 1953 to the time, we will say, when
I got the withdrawal card, w^e had numerous meetings, with John
Sweeney and with members of our organization, we will say, or who
represented the operators, and during that time, of course, we had been
on the way of negotiating a contract. We were asking in that contract
everything we could possibly ask, as far as we were concerned, in the
way of hours. We had one condition in there with a 6-day week that we
wanted, and another condition in there in which no car expense was
wanted, and then there was one other phase of it which was important
to me, the health and welfare program. This health and welfare pro-
gram that I have now I can't criticize. I think as far as I am con-
cerned, it was almost as good as the one I had.
But because I had previously had what I considered a good health
and welfare program, or a good program— it was that in the program
I had, I had a $5,000 life insurance policy for each one
Senator Mundt. I do not think the committee is interested in all
those details. We are interested now in why you could not talk to Mr.
Sweeney when you went to see him after he sent you the withdrawal
card. The question was when did you talk to Sweeney? Let us
answer the question. Where did you talk to Mr. Sweeney, and when
did you talk to Mr. Sweeney? If it was at his office, where was the
office?
Mr. Terry. When I got the withdrawal card, I went to Mr. Sweeney
and told Mr, Sweeney that I was ready to join the teamsters union,
provided
250 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Mundt. Where did you see Mr. Sweeney ?
Mr, Terry. I saw Mr, Sweeney at his office in Seattle 2 or 3 times.
Senator Mundt. You went from Portland to Seattle to talk to Mr.
Sweeney in his office ?
Mr. Terry. Yes, sir.
Senator Mundt. You said, ''I am ready to join the union"?
Mr. Terry. Yes, sir.
Senator Mundt. And what did he say ?
Mr. Terry. He said, "I will let you into the union, but I will not
let you in with the contract you want."
Senator Mundt. Then you were not ready to join the union, if he
would not give you your terms.
Mr. Terry. I was ready to join the union, if he w^ould give the con-
tract with the 6 days
Senator Mundt. In other words, you were ready to continue the
negotiations?
Mr. Terry. That is the attitude he took.
Senator Mundt. That is the attitude you took, too, because you said
"I will join the union on my terms."
Mr. Terry. Yes ; basically.
Senator Mundt. All right. He said he would not talk to you ?
Mr. Terry. He would not talk to me about that and would not talk
to me about anything that concerned the deal, except to let me know
very plainly that I could not get into the union.
Senator Mundt. You believe that the extent of the conversation in
Seattle was that you went to him and said, "I am ready to join the
union on my terms," in substance, and he said "I won't talk to you
about joining the union under the terms you have submitted"?
Mr. Terry. Yes, sir.
Senator jNIundt. And you turned ai-ound and came back to Port-
land?
Ml". Terry. Yes, sir.
Senator Mund-j-. Then what ha])pened ?
Mr. Terry. I think on another occasion I probably went to see him.
Senator Mundt. "\Mien was that ?
Mr. Terry. I think on another occasion I probably went to see him,
or made an etfort to see him.
Senator Mundt. You went to Seattle a second time to see him.,
About liow long after the first time ?
Mr. Terry. I can't remember that, sir.
Senator Mundt. A year, a month, a day ?
Mr. Terry. No, sir. My trips to Seattle, and to San Francisco, to
see Mr. Sweeney, was during the period. I would say, basically from
November the fourth to March 10.
Senator Mundt. In other words, you wei-e ])retty persistent about
trying to get into the union ?
Mr. Terry. Yes, sir.
Senator Mundt. You went to see him twic^. in Seattle, perha])s, and
once in San Francisco? ^' '
Mr. Terry. Yes, sir ; I was persistent to get into the union, if I could
get in by a ))roper contract.
Senator Mundt. And each time you talked with him, he had some
reason why vou could not ffet in? He would not even talk to vou
about it?
ES'IPROPER ACTIVITIES IN THE LABOR FIELD 251
Mr. Terry. He talked to me about the weather, everything else, but
as far as the contract was concerned, he would always say, "I don't
want to talk about any contract."
Senator Mundt. In other words, you gathered the idea that he was
simply slamming the union door in your face; is that right?
Mr. Terry. Well, he certainly wasn't opening it up.
Senator Mundt. He was not trying to get you in, but he was trying
to keep you out ; is that right ? Is that the way it looked to you ?
Mr. Terry. Well, it looked to me like each time I talked to him
Senator Mundt. Did it look to you like he was trying to pull you in
or push you out ?
Mr. Terry. It looked to me like he was trying to give me a bad
time.
Senator Mundt. Trying to keep you out ; is that right ?
Mr. Terry. I would say so.
Senator Mundt. All right.
Mr. Kennedy. This really came to a head, did it not, when they put
pickets on your Mount Hood Cafe, where you had machines ?
Mr. Terry. Yes, sir.
Mr. Kennedy. And the owner, Mr. Crouch, of the Mount Hood
Cafe, called you and said "Get in the union," as he related to us yester-
day?
Mr. Terry. Well, basically, yes. What he said yesterday, I wouldn't
say was wrong or right, I mean, it was conversation.
Mr. Kennedy. Did you tell him you couldn't get into the union,
as he related yesterday ?
Mr. Terry. Yes, sir.
Mr. Kennedy. That is, until j^ou could get in touch with the head
man in Seattle ? »
Mr. Terry. Yes, sir.
Mr. Kennedy. Did you make a number of trips to Seattle after that ?
Did you specifically go up to Seattle on February 3 ?
Mr. Terry. Yes, sir.
Mr. Kennedy. Did you go up to Seattle again on February 19 ?
Mr. Terry. It could be, sir.
Mr. Kennedy. And you visited John Sweeney ?
INIr. Terry. Yes, sir.
Mr, Kennedy. And then did you go up again in March, on March 8 ?
]\Ir. l^RRY. It could be, sir.
Mr. Kennedy. And did you go again on March 9 ?
ISIr. Terry. No ; I don't think I would go one day after another.
Mr. Kennedy. According to United Airlines, you went March 8,
1955, Portland to Seattle, round trip, and you went up again on March
9 — and this is just United Airlines — you went up again on March 9,
Portland to Seattle.
Mr. Terry. It could be, then.
Mr. Kennedy. Did you ever make a trip to San Francisco ?
Mr. Terry. Yes, sir.
Mr. Kennedy. Will you relate to the committee what the circum-
stances were that you went down to San Francisco to get into the
union?
Mr. Terry. Yes, sir.
Mr. Kennedy. Go ahead.
89330— 5T—pt. 1 17
252 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. The trip that relates to my trip to San Francisco is
this. My office is on the other side of the teamsters union, and I go
over to the YMCA 2 or 3 times a week to play handball, and on the
way by the teamsters union I stopped in to see Mr. Clyde Crosby,
and I asked Mr, Clyde Crosby if I could get into the union under the
contract that I wanted to get in under and Mr. Clyde Crosby, as he
told me before, I think, a couple of times, said as far as he was con-
cerned, Mr. John Sweeney had started negotiations and I had to
finish them with John Sweeney.
Mr. Kennedy. Let me ask you, then, was it not rather peculiar
that here you were just trying to get into a local union and you should
have been negotiating with Mr. Hildreth ? Why were you even dis-
cussing it with Mr. Clyde Crosby, the international organizer, and
then you were making trips up to see the secretary-treasurer of the
whole Western Conference of Teamsters?
Mr. Terry. I talked to John Hildreth about it, and he told me I
ha4 to see Mr. Sweeney, too.
Mr. Kennedy. Why would they not just let you in the union?
Wliy could they not negotiate themselves ? Why did you have to see
Mr. iSweeney ?
Mr. Terry. I just told j'ou.
Mr. Kennedy. Why ?
Mr. Terry. You will have to ask Mr. Clyde Crosby and Mr. Hil-
dreth why they told me.
Senator Mundt. Mr. Terry, you are a rather talkative fellow,
and when Mr. Hildreth said this was the logical place to go and that
you had to go to see Mr. Sweeney to get a contract, I cannot imagine
you not saying "Why." You did not develop any reticence before
Mr. Hildreth that you do not have before this committee, did you?
Mr, Terry. Yes, sir. As far as I am concerned, Senator, and I do
not mean to be facetious, but I am the one that is being questioned,
so I have to talk a lot. As far as I am concerned with Mr. Hildreth,
my impulse would be as I am talking to you, I would say "Mr. Hil-
dreth, jf you will give me the contract I negotiated before, I am ready
to get into the union" and if you said "You will have to see Mr. John
Sweeney," my impulse would be "Why?"
Senator Mundt. Your impulse would be to say "Why"?
Mr, Terry, My impulse would be to say "Why."
Senator Mundt. What did he say ?
Mr. Terry, I don't know what the exact words were.
Senator Mundt. In substance.
Mr. Terry. His words were this, that Sweeney is the boss.
Senator Mundt. Sweeney is the boss ?
Mr. Terry. Sweeney is the boss. In other words, my understand-
ing, both from Mr. Hildreth, Mr. Crosby, and anybody else that I
knew in the teamsters union, was that Mr. Sweeney was the boss.
Mr. Kennedy. Did everybody that got into local 223, everybody
that they were organizing, have to make a trip to Seattle? Every-
body had to go see John Sweeney ?
Mr. Terry. I don't know if everybody had to see John Sweeney
or not.
Mr. Kennedy. John Sweeney was the boss. Everybody who wanted
to join a local union, anybody that was interested in joining the union,
' IMPROPER ACTIVITIES EST THE LABOR FIELD 253
everybody, they all had to make a trip to Seattle and talk to the
secretai-^^-treasurer of the Western Conference of Teamsters?
Mr. Terry. I don't think so.
Mr. Kexxedy. Wliy did they send you up there?
Mr. Terry. As I related before, that was the man I had to see.
Mr. Kennedy. Going back to the time that you met Clyde Crosby
in the — where did you meet him ?
Mr. Terry. Do you have the date when I went to San Francibco ?
Mr. Kennedy. You went to San Francisco on February IG, and
then you went on March 8 also. You bought a ticket on March 8.
You went from Portland to Las Vegas, to San Francisco and back
to Portland.
Mr. Terry, I went to San Francisco March the wlien ?
Mr. Kennedy. You went February 16.
Mr. Terry. Yes, sir.
Mr. Kennedy. That was shortly after the jNIount Hood Cafe inci-
dent.
Mr. Terry. And March 8 to Las Vegas?
Mr. Kennedy. You went to Las Vegas. You were very busy dur-
ing the period of March 8 to March 9. But you went to San Francisco
on February 16. Anyway, when you went to San Francisco, tell us
about the conversation with Clyde Crosby that brought about your
going to San Francisco.
Mr. Terry. Yes, sir. I was on my way to the YMCA, and I thought
I would stop in and see Crosby, if he was ready to let me sign the
contract we originally negotiated for. He happened to be in the coffee
shop. I said, "Clyde, we have been fooling around with this thing.
1 have been up to see Sweenev. It is hard to see Sweenev. You can't
make an appointment. If you call hnn, he is out, and if you do any-
thinfif to let him know you are coming to see him. he is gone. But,"
I said, "this, as far as I am concerned, has gone. There has been a lot
of conversation around town that they weren't going to let me in
the union."
Mr. Kennedy. Was that not the conversation around town that
they would not let you in the union under any circumstances ? You
never complained about the fact that they would not let you in under
your conditions ?
Mr. Terry. By that time, my accounts were being picketed, there
had been a picket on the Mount Hood Cafe, and that sort of thing.
Mr. Kennedy. So you would go into the union under any circum-
stances ? Is that not the sentiment you expressed around town, that
you were ready to get into the union ?
Mr. Terry. Yes; I was ready to get into the union, but not under
any circumstances.
Mr. Kennedy. Well, not under any circumstances, but under any
circumstances that they would let you into the union ?
Mr. Terry. No, not under any circumstances that they would let
me into the union.
Mr. Kennedy. AVoll, under the same contract that they let others in,
as they let Budge Wright in? You were ready to go in under that
contract ?
254 EVIPROPER ACTIVITIES IN THE LABOR FIELD
to go to San Francisco to see Sweeney." He said, "If you are really
serious about getting into the union, and you are ready to sign a con-
tract, you will go down and see him. After all, he is down there
with a friend of yours in the coin machine business, attending a con-
ference down there, and maybe you can ])ersuade him to let you sign
a contract to come into the union or persuade Sweeney to give you the
contract you want."
I said, "That is a kind of absurd thing, to ask me to go down there."
Once again he said, "Well, if you are serious about it, I think you
should." So I said, "Well, just to prove to j^ou that I am serious
about signing a contract and getting into the union, I will get on the
airplane and I will go down to San Francisco."
Then I turned my car around and went out to the airport, got a
ticket, no toothbrush, no nothing, and went down to the Cliff Hotel,
where Mr. Crosby said he was staying, waited in the lobby of the Cliff
Hotel, they told me there he was registered there, I waited in the
lobby of the hotel until, I don't know, 7 o'clock in the evening, and in
walked Mr. Sweeney.
I said, as near as I can remember, "John, I would like to talk to you
about the contract."
"I don't want to be bothered. Wlio told you I was here?"
He just didn't give me any satisfaction at all.
I said, "Well, I made this trip all tlie way down here. Can I talk
to you sometime?" And he said, "Yes, you can see me tomorrow
morning at breakfast."
"What time do you eat breakfast?"
"I don't know what time I eat breakfast. Sometime around 9
o'clock."
"Well, if I am here, can I talk to you then ?"
He says, "If you are here."
I tried to get a room at the Cliff Hotel and couldn't get a room.
I went across the street and stayed. The next morning I went down
by the elevator about 8 : 30, and waited for Mr. Sweeney to come
down, about 10 : 30, I think, or so.
He said good morning to me. Two or three other fellows had break-
fast with him. During breakfast, I said, "Mr. Sweeney, I want to
talk to you about this union contract."
"I don't want to be bothered about union contracts at my breakfast."
He wouldn't let me talk.
I said, "Can I see you later in the day?" And he said, "No, I
am going to be busy with conferences later in the day."
So I went on tlie airplane and went home.
Senator Mundt. Who was the other coin-machine operator at San
Francisco at that time?
Mr. Terry. There was a fellow who had been in business there,
and who had been in business for a long time, who was a distributor
there, and his name was Lou Walcher. He had been in business for
a long time. He, and I think all the operators in San Francisco, at
least that is what John Sweeney told me, belonged to the teamsters
union in San Francisco.
Senator Mundt. This was a San Francisco operator, not a Portland
operator ?
Mr, Terry. A San Francisco operator ; yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 255
The CHAntMAN. After you left San Francisco, you went back to
Portland?
Mr. Terry. Yes, sir.
The Chairmax. 'WTiere did you go from there ?
Who was the next person you contacted ?
Mr. Terry. Well, I thiiik the next person I contacted, as far as
John Sweeney is concerned, was no one, unless you might call
The Chairman. Something else happened afterward. You finally
got i n the union . Let us move toward that direction now.
Mr. Terry. Yes, sir.
The Chairman. "WHiat did you do next?
Mr. Terry. May I make one other point here, sir?
The Chairman. Yes, sir. Make it.
Mr. Terry. I^y February IG, in fact by February 9 or 10, I felt
sure in my own mind, and I had collaboration to the fact, that the
teamsters, sooner or later, had to let me in the union.
The Chairman. How did they have to let you in I
Mr. Terry. May I explain that ?
The Chairman. I asked the question. Yes, sir, go ahead.
Mr. Terry. When the pickets went on the Mount Hood Cafe, and
you heard the testimony on that, then from there, of course, Mr. Crouch
called me and asked me to come down and do something about taking
the pickets otf. I said I would do something to take the pickets off,
and I will also see somebody that I think would let me join the union.
I had been fighting the union because I didn't want to join the union.
But as far as I was concerned, I would see somebody, and if I could
get into the union, I would join the union.
I went to see my attorney at the office of Black, Kendell & Fain.
The ofKce of Black, Kendell & Fain are also attorneys for the Oregon
Publishing Co. Black, Kendell & P^iin had done a lot of law work,
particularly David Fain, as far as the fight with the city ordinance,
to perpetuate the ordinance.
I went to see David Fain, who was my attorney, and not to quote
the words at that particular time, but I Avas mad, I said, "David, let's
get the pickets off the Mcumt Hood Cafe. Let's sue them, let's take
them to court, let's do anything we can do to take the pickets off."
David said, "Well it might take a few days to do it, but we can
get the pickets off."
I said, "Get them off."
The picket went on the last day of January, and he was on for the
1st, the 2d, and 3d of February. The second day that the pickets
were on there, I Avent back to see DaA-id Fain, and David Fain told
me basically this, that it would be a hard job to get the pickets off, that
it would take a week or 5 or 6 days to get the pickets off' at best.
I said, "In 5 or 6 days the Mount Hood Cafe will be out of business,
because he is down there with raili-oad men and taxi drivers."
The Chairman. Let us get down to the point now.
Mr, Terry. Just let me finish this story, sir.
He explained to me that the reason Ave would haA'e a hard time
to get the teamster pickets off the Mount Hood Cafe AA^as because of
a brewery case that came out of some United States decision that said
this, that they liad a ])icket on a man's brewery, and the picket stayed
in front of the breAvery and didii't have much effect. But when they
256 IMPROPER ACTIVITIES IN THE LABOR FIELD
took the pickets away fi^om the brewery and followed the brewery
wagon around to the different accounts, it had a very good effect.
Everybody joined, or the brewery joined immediately. That case
went' to the Supreme Court, and the Supreme Court, as Mr. Fain
explained it to me, said that the union had a right to follow a man's
product. He explained to me then that we would have a hard time
getting the picket off, and also it would cost time and money.
The Chairman. You are explaining the other way, instead of ex-
plaining how you could get in, getting advice that you could not get in.
Mr. Terry. I will explain now.
So then I said, "Well, then, I have to go down and get the picket
off of Mr. Crouch's place."
So I went down to Mr. Crouch's place, which was then, I suppose,
the third, because that is when the picket went off, and took my ma-
chines out of the Mount Hood Cafe. When I took my machines out,
then the picket left.
Then the problem w^as what to do about the union. Because of my
withdrawal card, I had already tried to get in, and I knew I was in,
we will say, a little trouble.
The Chairman. You were in the doghouse with the union ?_
Mr, Terry. To put it in the vernacular, yes, sir. I was in the
doghouse.
The Chairman. The vernacular we understand.
Go ahead.
Mr. Terry. So David said to me after a couple of days, he said,
"I know how we can keep these teamsters from bothering you any
more."
That was the best news I had heard for quite a little while.
The Chairman. That was your lawyer?
Mr. Terry. Yes, sir.
The Chairman. What did he say ?
Mr. Terry. He picked up the telephone in my presence and called
Jim Landye, the attorney for the teamsters union. Mr. Landye was
a highly respected lawyer in Oregon, and had the reputation of repre-
senting the teamsters union. He called, afid as I remember the con-
versation was basically this : "Mr. Landye, I have my client, Stanley
Terry, in my office, and I am saying this to you now as one attorney
to another,"' or the ethical way of putting it, whatever it happens to
be, "And I am informing you now that Mr. Terry is ready and willing
to sign a contract from the teamsters union. If you will bring the
contract down or have an agent of the union bring the contract down,
Mr. Terry will sign it. Furthermore, if the teamsters union should
picket any more of Stan Terry's locations, or harass him in any way,
we are going to sue the teamsters union for everything that we can,
and Mr. Landye, you know me and my reputation as an attorney.
I mean every word of it."
He hung up the phone, and he said, "Now, Stan, just let them put
one more picket on your place, just let them put one more belt under
the belt, or kicking around, and we will have the best lawsuit we
ever had."
The Chairman. If he was going to take care of you that well, it
was not necessary for you to go into the union, was it ?
Mr. Terry. Pardon?
IMPROPER ACTIVITIES IN THE LABOR FIELD 257
Tlie ChxVirmax. If he was going to take care of you that well, there
was no need for you to join the union, was there?
Mr. Terry, No, sir.
The Chairman. Now we got to the point where you do not have
to join,
Mr, Terry. I don't have to join.
The Chairman, We are relieved.
Go ahead.
Mr. Tet{RY, So then as far as I am concerned with Mr. Sweeney,
my conversations with him, and what he didn't know, was that I had
him so that he couldn't do anything with me, and, therefore, with the
efforts of chasing him around, I could talk to him, or might be able
to talk him into the fact of taking the contract that I had previously
negotiated, wliich was a 6 day a week, no health and welfare, and that
sort of thing.
So I tried my best to prevail on Mr, Sweeney, with "Mr. Sweeney,
let's bury the hatchet. You put the pickets on the Mount Hood Cafe,
I am willing to join the union, but I want my contract. I want my
original contract,"
Mr, Sweenej^, of course, every time he talked to me gave me the
brush off, made it hard for me to find him. That was the reason why
with Mr. Sweeney I had no hestiation at any time to go talk to Mr.
Sweenej', because I think, or thought at the time, I had Mr, Sweeney
just about where I wanted him.
The Chairman. So your attorney already advised him that you
would sign a contract, in your presence ?
Mr. Terry. Advised who, sir?
The Chairman, Your attorney advised the attorney of the team-
sters that you were there ready to sign a contract before that, in his
office?
Mr, Terry. Yes, sir.
The Chairman. And that was the union contract that they wanted
you to sign, was it not?
Mr. Terry. Yes, sir.
The Chairman. Not the contract that you proposed, but the con-
tract that the union had wanted you to sign. You had gotten to the
point where you were ready to do that ?
ISIr. Terry. Yes, sir.
The Chairman. And your attorney advised the attorney for the
union that you were ready to do that, and if they did not take you on
the terms of their own contract then he could take these actions to
protect you?
Mr. Terry. Right, sir.
The Chairman. So you went back, and after telling him you were
ready, or your attorney telling him you were ready, to sign the con-
tract, you say you went back and demanded your old contract, the
one you proposed ?
Mr. Terry. Yes, sir.
The Chairman. Is that what you mean to say ?
Mr. Terry. Yes, sir.
The Chairman. Proceed.
Mr. Terry. So it was my subsequent visits to Mr. Sweeney both in
Seattle and San Francisco.
258 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. I don't think you ever answered the question of the
chairman as to why you wanted to join the union. You really had
them by the time your lawyer called up their lawyer.
Mr. Terry. Sir, if I made myself clear, I was in this position. I
knew I would have to sign a contract if they brought it down to me.
In other words,) if they brought me down a contract, after David
Fain called them, if they brought down a contract that said, "Stan
Terry, at 12 o'clock noon, stand on your head at Fourth and Morrison,"
I was obligated to sign the contract, and I was ready and willing to
do it.
But they never brought the contract around.
Mr. Kennedy. You had them, so they could not bother you any more,
so why did you go and make all of these trips, without a toothbrush,
to San Francisco, and 2 or 3 trips to Seattle ? You did not have to join
the union then. You said you really had them just where you wanted
them.
Mr. Terry. Yes, sir.
Mr. Kennedy. Why did you do all of this traveling, then ?
Mr. Terry. Wliy ? I did it for this reason, that in my accounts, they
were all asking me why I didn't join the union, or if I had made my
peace with the union, or when I was going to get into the union, because
there was a newspaper article that the Mount Hood Cafe had been
picketed and they were afraid that they were going to be picketed.
In fact, during that period, my accounts would call me and say,
"Stan, have you joined the union yet? I don't want a picket in front
of my place."
I even went as far as telling my accounts, "Don't worry, if a picket
goes in front of your place, I will have them off in 5 minutes and will
sue the union."
The Chairman. Let us move a little faster. The Chair wants to be
patient and give you every indulgence possible, but let us move on
down.
When did you finally make a contract with them ?
Mr. Terry. I finally made a contract with them sometime in the
middle of March, I guess, or somewhere in March.
The Chairman. You never were able to make it with Sweeney, were
you?
Mr. Terry. No.
The Chairman. You were never able to make it with Clyde Crosby,
were you ?
Mr. Terry. No, sir.
The Chairman. Who was the next high man that you had to go to ?
Mr. Terry. The only man ahead of John Sweeney would be Frank
Brewster.
The Chairman. You finally had to go to Frank Brewster, did you?
Mr. Terry. I never went to Frank Brewster.
The Chairman. Who made the appointment for you when you went
to see Frank Brewster ?
Mr. Terry. I think Hy Goldbaum made an appointment for me to
see Frank Brewster, but I didn't see Frank Brewster.
The Chairman. You did not see Frank Brewster?
Mr. Terry. No, sir.
The Chairman. You went to his office ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 259
Mr. Terry. Yes, sir.
The Chairman. Wlio is Hy Goldbaum?
Mr. Terry. Hy Goldbaum is a fellow I met in Las Vegas.
The Chair3ian. You never met him before, had you ?
Mr. Terry. No, sir.
The Chairman. He was recommended to you, was he ?
Mr. Terry. Hy Goldbaum
The Chairman. He was recommended to j^ou, for you to get in
contact with, was he ?
Mr. Terry. No, sir.
The Chairman. "Wlio recommended him ?
Mr. Terry. I didn't say he was recommended.
The CHAiiiMAN. I am asking you who recommended him to you?
Mr. Terry. A fellow by the name of Shear.
The Chair3ian. Then he was recommended to you, was he not ?
Mr. Terry. AVell, sir
The Chairman. Let us go on. You said you are here, and empha-
sizing that you want to tell the truth. Shear recommended Goldbaum
to you, did he not ?
Mr. Terry. Shear, yes, sir.
The Chairman. He recommended to you that he could help you, did
he not, in connection with your union problems ?
Mr. Teri^y. He said he probably could, yes.
The Chairman. And he told you why he could help you, did he not ?
Mr. Terry. Yes, sir.
The Chairman. He told you because of certain connections he had
with Frank Brewster, that he could get you an appointment with
Frank Brewster and get Frank Brewster to let you into the union, did
he not ?
Mr. Terry. He didn't tell me exactly that.
The Chairman. Well, that is what you understood from him, was
it not?
Mr. Terry. No, sir.
The Chairman. Wliat did you understand from him ?
Mr. Terry. I understood from him that he was a good friend of
Frank Brewster's.
The Chairman. And that he could help you ?
Mr. Terry. Well, if he was
The Chairman. You went to Las Vegas to get in touch with Hy
Goldbaum, did you not ?
Mr. Terry. No, sir.
The Chairman. What did you go to Las Vegas for ?
Mr. Terry. I went to Las Vegas on a business deal.
The Chairman. That was a business deal you were interested in at
that time, trying to get into the union, was it not ?
Mr. Terry. I had another business deal.
The Chairman. That would probably be a side issue, but you went
there to get in touch with Hy Goldbaum, did you not ?
Mr. Terry. Mr. Chairman, I want to say this now
The Chairman. I know
jMr. I'erry. How do you know wliat I am going to say, until I
say it ?
The CiLMRMAN. I know what the facts are. Go ahead.
260 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Terry. I want to say this : I went to Las Vegas for the main
purpose of transacting a business deal in Las Vegas, and, about seeing
Hy Goldbaum, not being sure that I could see Hy Goldbaum.
The Chairman. But you wanted to see him, is that right?
Mr. Terry. Yes, I would want to see him.
The Chairman. Wlien did you see Hy Goldbaum? Was it when
you were at Las Vegas ?
Mr. Terry. Yes, sir.
The Chairman. What did you talk to him about ?
Mr. Terry. I talked to him very briefly about the union.
The Chairman. About what ?
Mr. Terry. About the union.
The Chairman. All right, go ahead. What arrangements did you
make with him?
Mr. Terry. Mr. Chairman, if you would give me 3 minutes, I will
tell you the complete transaction.
The Chairman. I have been giving you more than that from time
to time. I see no reason why I cannot give it to j^ou again. Go
ahead for 3 minutes and tell the transaction.
Mr. Terry. Would you give me 5 minutes to tell the transaction,
sir?
The Chairman. You only talked to him briefly.
Senator Mundt. Mr. Chairman, before we get into this conversa-
tion, and it is going to be rather long, I can see that, I wonder if we
cannot get the full circumstances as to how he first met Mr. Goldbaum,
whom he said he did not know at the time he left Portland.
Is that right?
Mr. Terry. Yes, sir.
Senator Mundt. But you had been told by Mr. Shear that he would
be a good man for you to see ?
Mr. Terry. Yes, sir.
Senator Mundt. So you went to Las Vegas to see him?
Mr. Terry. Yes, sir.
. Senator Mundt. Wlien you go to Las Vegas to see a man whom
you do not know, somebody probably has to establish a contact with
him.
Mr. Terry. Sir, would you give me 5 minutes, sir?
Senator Mundt. I want to know first of all, because I know, and I
want you to tell us, who it was in Las Vegas who put you in touch
with Mr. Goldbaum.
Mr. Terry. Sir, who actually introduced me to Mr. Goldbaum ?
Senator Mundt. That is correct.
Mr. Terry. Mr. Caprie.
Senator Mundt. Of the Flamingo Hotel ?
Mr. Terry. Yes, sir.
Senator Mundt. You knew Mr. Caprie before that?
Mr. Terry. I had never actually met Mr. Caprie, if that is his
name.
Senator Mundt. Well, we will not argue about the pronunciation.
If you did not know Mr. Caprie when you went to Las Vegas, how
did you meet him ?
Mr. Terry. That is what I want 5 minutes to explain.
Senator Mundt. How you met Mr. Caprie ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 261
Mr. Terry. Yes, sir.
Senator Mundt. That is 5 minutes in addition to the Goldbaum
matter ?
Mr. Terry. No, sir. That is included in the 5 minutes.
Senator Mundt. Since you will identify that man, I will have no
objection to the 5 minutes.
Mr. Kennedy. Before you start in, what had you heard about Hy
Goldbaum ?
Mr. Terry. I just said that Mr. Shear told me he was a good friend
of Mr. Brewster's.
]Mr. Kennedy. Did you hear that Frank Brewster had an obligation
to him ?
Mr. Terry. No ; not particularly.
Mr. Kennedy. Well, did you hear something like that, that Hy
Goldbaum had done a great favor for Frank Brewster?
Mr. Terry. From Mr. Shear ?
Mr. Kennedy. From anyone.
Mr. Terry. I learned later that Mr. Goldbaum and Mr. Brewster
were good friends. What he did to become good friends, I don't know.
Mr. Kennedy. Were you told that Hy Goldbaum had done a great
favor for Frank Brewster ?
Mr. Terry. I don't believe that was ever said.
Mr. Kennedy. Was that ever discussed at all?
Mr. Terry. No, sir.
Mr. Kennedy. Never discussed ?
Mr. Terry. Not as I can remember; no, sir.
Mr. Kennedy. You just heard that they were friends. Is that all?
Mr. Terry. I heard they were friends. Well, sir, as far as that is
concerned, when you say, "Well, you are a good friend of mine," and
the fellow says, "How do you know?" or this or that, maybe you can
use the expression he did a good favor, or that they have been friends
a long time, or they went to school together.
Mr. I^nnedy. And that Frank Brewster was under obligation
to him ?
Mr. Terry. I never heard that Frank Brewster was under obliga-
tion to him; no, sir.
Mr. Kennedy. You did hear that he had done him a great favor;
is that right ? You knew he was under great obligation ? That was
never discussed ?
Mr. Terry. You are speaking about conversations, and I am not
sure whether or not — if somebody said I made that kind of statement,
I may have made that statement. I don't ever remember that.
Mr. Kennedy. You remember discussing that, that Hy Goldbaum
did a great favor for Frank Brewster?
Mr. Terry. Discuss it with who ?
Mr. Kennedy. With anyone.
Senator Mundt. Is it possible that you made that statement?
Mr. Terry. It is possible ; yes, sir.
Senator Mundt. Who is Mr. Shear? Is he a pinball operator, too?
Mr. Terry. No, sir.
Mr. Kennedy. Tliat is Mr. Karl Shear, residing at 1417 Northeast
Thompson Street, Portland, Oreg.
Senator Mundt. Is that right?
262 IMPROPER ACTIVITIES EST THE LABOR FIELD
Mr. Terry. I don't know what his address is, but that is the man ;
yes, sir.
Senator Mundt. "Who is he ?
Mr. Terry. Mr. Shear is in the loan business in Portland. No. He
Bays he is in the banking business.
Senator Mundt. The banking- business in Portland?
Mr. Terry. Yes, sir.
Senator Mundt. And he is a friend of yours ?
Mr. Terry. Yes, sir.
Senator Mundt. You went to Mr. Shear for what purpose ? How
did he happen to tell you about Goldbaum?
Mr. Terry. Well, that fits in this whole transaction, if you will just
let me tell the story.
In other words, the whole transaction went on between Shear, Gold-
baum, and Brewster. I will tell you the whole transaction.
(At this point, the chairman left the room.)
Senator Mundt. We want to establish first, before you start into
that, how you happened to go to Mr. Shear in the first instance in
connection with your trouble with the teamsters' union. He is a
banker. He is ]iot involved in pinballing, and he is not involved in
the teamsters.
Mr. Terry. Whe the chairman comes back, sir, I will explain the
whole thing.
Senator Mundt. You may begin your explanation at this point by
telling us how you happened to go to Mr. Shear.
Mr. Terry. Mr. Shear and I have been friends and have done busi-
ness together for a number of years.
Senator Mundt. Did you go to him and discuss the trouble you
were having with the teamsters' union ?
Mr. Terry. No, sir.
Senator Mundt. How did he happen to inject himself into youi*
problem ? If you did not bring it up with him, he mnst have brought
it up with you.
Mr. Terry. No ; I brought it up with him.
Senator Mundt. I have just got through asking you if you dis-
cussed the problem with him, and you said no, sir.
Mr. Terry. I didn't go to liim to discuss the problem.
Senator Mundt. How did you happen to discuss it with him ?
Mr. Terry. In the course of conversation.
Senator Mundt. Where was the conversation ?
Mr. Terry. In the Arrow Club of Oregon.
Senator Mundt. The two of you met in the Arrow Club ?
Mr. Terry. He called me and wanted me to go to lunch.
Senator Mundt. So you told him, "I am having a lot of trouble with
my pinball business, and the teamsters union is causing me a lot of
difficulty," and you related your problem?
Mr. Terry. Yes, sir.
Senator Mundt. What did he say?
Mr. Terry. Well, that is part of the whole story.
Senator Mundt. Let us start the whole story with that question.
Mr. Terry. Well, let's start the story this way, then, sir :
Mr. Shear called me on the telephone several months, I guess, or
maybe 2 months, prior to November 4. As far as the dates are con-
RIPROPER ACTIVITIES EST THE LABOR FIELD 263
cerned, I can't put tlie dates down exactly when he called. My con-
T^ection with Mr. Shear was this :
Mr. Shear was in the loan business. If a man wanted to buy a
tavern, we will say, and if he didn't have enough money to buy a
tavern, he would come to me or come to the real estate man, and would
say, "Here, I have $2,000, with which I want to buy a tavern."
(At this point the chairman returned.)
Senator Mundt. You are taking too much time here. We are just
interested in certain facts, not your whole business career and all the
facts of life. We are interested in certain problems. If you would
be responsive to the question, it would indicate that you want to start
home today. Certainl}^ you want to start home within the next 2
weeks. You will never get started home, if you relate your whole life.
Answer the question as to how Mr. Shear injected himself into your
difficulty. You told him the problem in the Arrow Club ?
Mr. Terrt. Yes, sir.
Senator Mundt. Now, you say he told you to see Goldbaum. Tell
us about the circumstances under which he told you to see Goldbaum.
Mr. Terry. Yes, sir. I told you I would tell you the circumstances
if you would allow me 5 minutes, and you said wait until the chairman
comes back. I am ready to tell you.
Senator Mundt. Start in.
Mr. Terry. Then I have 5 minutes ?
Senator Mtjndt. Can we hold you to it?
Mr. Terry. Yes, sir.
Senator Mundt. All right. If we can hold you to it, go ahead.
The CriArRMAN. Proceed, and let us have the story.
Mr. Terry. I will probably have to talk rather rapidly, if I only
have 5 minutes.
This, to me, is not funny. It is very serious.
The CHAiR:srAx. It is serious with us, too. If we can get the truth,
I think it will be serious with you.
Mr. Terry. I want to give you the truth.
Mr. Shear called me and told me he had a business proposition that
he thought I would be interested in. Mr. Shear had been in the past
in tlie habit of loaning people who wanted to buy taverns money.
(Consequently, if I heard of anybody who was short $1,000 or so, I
would send him to Mr. Shear, and Mr. Shear would loan him the
money. We have had business transactions of that nature over a
number of years. Mr. Shear also, because of his loans to these taverns,
knew that the price of the tavern or his security was dependent as far
as what the pinball business would get, due to the fact that we had
a council ordinance that was going to prohibit pinball games sooner
or later, and it was getting closer and closer to the time that we were
going to have to take our pinball games out of the city of Portland.
In other words, it was apparent that we couldn't keep fighting these
things in the courts forever, or give any types of petitions, to per-
j^etuate pinball business in the city of Portland, even though I think
the city of Portland was wrong in passing the ordinance.
During this time. I suggested to Mr. Shear several times that I
wonld be intei"ested in gettiug in some other type of business. On thi^
particular instance, he called me and said, "I have a good proposition
for vou."
264 IMPROPER ACTIVITIES IN THE LABOR FIELD
I said, "Fine ; tell me about it." Usually he tells me anything over
the telephone that he wants to talk about, and he said this time, "No,
I don't want to talk to you over the telephone."
I said, "Fine, I will come and see you, or you come and see me."
"Well, let's have lunch. Set a date for lunch."
We went to lunch, and while eating lunch he told me about the busi-
ness proposition he had or knew about.
The Flamingo Club of Las Vegas had sold, and the sellers had in
their posession, a mortgage that was going to be paid ofi' in a num-
ber of years, we will say, 5 years. In Las Vegas, I cton't know whether
you are familiar or not, everything is done on a sliare basis. A thou-
sand fellows get together and buy this table in front of you, or the
Flamingo Club in this case.
■ : I don't know how many there were, or how much the total mort-
gage was, except that I do know that Mr. Shear told me that Mr.
Caprie had 2 points of Flamingo Club, that that mortga^^e would
pay off $120,000, we will say, roughly, in 5 years, and that Mr. Caprie
wanted to sell that mortgage for a discount.
In other words, I could buy the $120,000, we will say, for $80,000
or $90,0C0. I think the figure that Mr. Shear told me was $80,000.
I told Mr. Shear, I said, "Well, to me I don't want to have anything
to do with Las Vegas. As far as I am concerned, I don't want any part
of Las Vegas. I don't want to make any investments in Las Vegas. I
am not interested in Las Vegas."
He said, "You will have no part in Las Vegas. This is a mortgage,
a discount mortgage. You can buy that thing for $80,000, the payoff
is $120,000, and you make yourself $50,000 in 5 years."
"Mr. Shear, I am not interested in doing that, because I have trouble
with the union, I have trouble with my business. I don't know how
long I am going to be in business. I don't think I would be interested
in it."
He said, "Well, maybe you can get the thing at a better discount.
Why don't you go down and see this Caprie," who he told me it was,
"and see who you can make a connection with." I said, "No, I am
having too much trouble with the union."
"I met a fellow, or Caprie knows a fellow, in Las Vegas, who is a
good friend of Brewster's. Maybe Caprie will take you to see this
fellow, and you can help out your trouble with the union."
I said, "Well, I am not particularl}^ anxious. I don't have really a
problem in the sense of the word. Sooner or later they are going to
have to let me in the union, but I would like to get in under the contract
I want. And if I can't get under that contract, I will have to take
the contract they want to ram down my throat, which I don't like."
We talked some more about it, and he said, "Well, if you ever make
a trip dovrn to Las Vegas, see it."
Mr. Dunis, his wife, and I and my wife, went down to Los Angeles.
One day while I was in Los Angeles, I went to see Mr. Caprie. I went
to Los Angeles in mind of seeing Mr, Caprie, and buying these two
points, if I could get them at the right price from Mr. Caprie.
Another reason that I went to Las Vegas, if the opportunity pre-
sented itself, was to see Mr. Hy Goldbaum.
I went on the airplane that morning from Los Angeles to Las Vegas.
I went to the Flamingo Club and saw Mr. Caprie, I waited for liim
IMPROPER ACTIVITIES IN THE LABOR FIELD 265
for quite a while. Finally he came out to the swimming pool, and acted
like he was looking around. I introduced myself and asked if he was
Caprie, and he said "Yes."
We talked about the two points of the Flamingo Club, which I was
not too interested to buy, but if I could have bought the two points
for $50,000, 1 would have bought it, if I could have raised the money.
Mr. Kennedy. For how much ?
Mr. Terry. $50,000. If I could buy it, I think I would have bought
it.
JMr. Kennedy. How much were they asking ?
Mr. Terry. One hundred and twenty.
Mr. Kennedy. So you went there and wanted to offer 50, and he
was asking 120 ?
Mr. Terry. They were asking 80 for it, but it was worth 120. The
reason Mr, Caprie wanted to sell the two points of Flamingo Club
was that these two points he had were worth $120,000, but you had to
wait 5 years for it, and he had an opportunity, and did have a job,
to go into another casino across the street called the Dunes, and if
he could get his hand on $80,000, as I understand it, cash, or money,
then he could take that $80,000 over to the Dunes and invest it.
So he would have $80,000, or in his particular case, $120,000 invested
m the Dunes, but the investment in the Dunes would do one thing
that the Flamingo Club investment wouldn't do. It would earn him
an income on the two shares of the Dunes; it would earn him an
income.
But on the Flamingo, all he could do was wait for his money. That
is the reason he wanted to discount it.
So then we talked and Mr. Caprie took me to lunch in the Flamingo
Club, and paid the check, and we went to his house.
The airplane was going to leave at 3 o'clock, and he said, "Come
on over and I will introduce you to Mr. Goldbaum. I will show you
the motor court," or motor hotel, or apartment house that he had
that he was trying to get Mr. Shear to buy up the mortgage on and
give him some more money. He wanted to put this hotel or motel
into hock with Mr. Shear for additional money. He was trying to
get as much money as he could to buy two points in the Dunes.
He took me to the motel, and introduced me to several people, one
of whom was Hy Goldbaum.
The Chairman. I have given you 6 minutes. I want to ask you
about Hy Goldbaum. You went there to meet Hy Goldbaum, pri-
marily, did you not?
Mr. Terry. No, sir.
The Chairman. Well, you did meet him?
Mr. Terry. Yes, sir.
The Chairman. Why did you meet him?
]\Ir. Terry. Mr. Caprie took me over and introduced me.
The Chairman. 1 know he took you over, but he did not take you
over and introduce you without your wanting to go. Why did you
want to meet him?
Mr. Terry. I wanted to talk to him.
The Chairman. Why?
Mr. Terry. I didn't go there for the specific purpose of talking to
Goldbaum.
The Chairman. But you still wanted to see Goldbaum ?
266 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. Yes, sir. I didn't ask Mr. Caprie to take me over and
introduce me to him.
The Chairman. How did he know you wanted to meet him?
Mr. Terry. Mr. Shear told him.
Tlie Chairman. Mr. Shear told him you wanted to meet him ?
Mr. Terry. Yes, sir.
The Chairman. Mr. Shear had already told him so you did not
have to tell him. Mr. Shear already apprised Mr. Caprie — Mr,
Shear had already advised Mr. Caprie what your interest was in
Goldbaum; had he not?
Mr. Terry. Yes, sir.
The Chairman. So you did not have to talk it over with Caprie?
Mr. Terry. No, sir.
The Chairman. All you wanted to do was get the introduction.
You succeeded, you got to Goldbaum.
Mr. Terry. Yes, sir.
The Chairman. You started the conversation with him?
Mr. Terry. Yes, sir.
The Chairman. Did you tell him your trouble ?
Mr. Terry. As I remember, what I said to Mr. Goldbaum, and 1
only saw him for about •
The Chairman. The Chair has indulged you. I want you to
answer my question. Did you tell him your troubles?
Mr. Terry. I told him I didn't have any troubles, particularly.
The Chairman. You told him you did not have any troubles. He
did not have any. T\^iat was your conversation about?
Mr. Terry. Well, sir, when two people are introduced and they
start on a subject, they might tallv about the weather.
The Chairman. That is true, when one is not being introduced to
talk to another about a certain problem he has. You were introduced
to him for a reason. That is why Shear made the arrangements. That
is why Caprie took you over and mtroducel you. What did you talk
about ?
Mr. Terry. I said this to Mr. Goldbaum, if you will give me 3
minutes — give me 1 minute — "Mr. Goldbaum, I don't have any par-
ticular troubles with the union, I would like to get into the union
under my contract, but I think I have got to get into the union under
their contract. As far as I am concerned, the union has given me a
rough time."
Basically, that is all I said to Mr. Goldbaum.
The Chairman. He was not interested in that, was he?
Mr. Terry. He did not tell me whether he was interested in that
after I told him that.
The Chairman. After you told him that, what happened?
Mr. Terry. After I told him that, I told him that I didn't have
any particular problem, but I would like to get into the union with
the contract I wanted
The Chairman. You do not mean after all you had been through,
you told him you had no particular problem, do you? You do not
want us to believe that ? Let me get down to the truth.
Mr. Terry. I just told you, I didn't have any particular problem
as far as the union was concerned, because I could get into the union.
IMPROPER ACTIVITIES IN THE LABOR FIELD 267
I could get into the union if I wanted to sign their contract in prefer-
ence to my own.
The Chairman. All right. Go ahead.
Mr. Terry. So he said he would see what he could do.
The Chairmax. Did you tell liini that you had been trying to get
in, that you had been to Crosby, that you had been to Sweeney, and
you had done everything you could to get into the union? Did you
not tell him that ?
Mr. Terry. I probably could have told him
The Chairman. Did you tell him that one of your places had been
picketed and closed down? Did you not tell him that they were
threatening to do that to all the other places you had ? You told him
that story, did you not?
Mr. Terry. Yes, sir.
The Chairman. All right. You related your troubles, you un-
burdened yourself about your problems about the union ; did you not ?
Mr. Terry. Yes, sir.
The Chairman. All right, go from there.
Mr. Terry. But, I said, sooner or later I could get into the union
under their contract. So he said he would see what he could do with
Brewster.
The Chairman. That is what you wanted him to do: was it not?
That is what you asked him to do?
Mr. Terry. Not particularly. I would say this, that if I could
prevail upon Mr. Brewster to give me back my previous contract ; fine.
The Chairman. You asked him to make arrangements for you to
see Brewster, did you not ? Why not just say so? We all know that
is what you did, and ever3^body listening to you knows exactly that is
what you did.
Mr. Terry. I don't know whether I said to him to make arrange-
ments for me to see Brewster or whether he was going to see Brewster
himself. I don't know.
The Chairman. You were there?
Mr. Terry. Yes, I was there.
The Chairman. Did you see Brewster? Did he make arrange-
ments for you to see him ?
Mr. Terry. I never saw Brewster.
The Chairman. Did he make arrangements for you to see Brewster
and tell you the time and place to see Brewster ?
Mr. Terry. He called me on the telephone and told me he had made
an appointment with Mr. Brewster.
The Chairman. Yes. So he was to make an appointment with
Brewster for you ?
Mr. Terry. I don't know whether he was or not. He told me he did
make an appointment.
The Chairman. You knew when you left him that that was the pur-
pose, for him to get you in contact with Brewster. That is why you
wanted to see him in the first place, was it not?
Mr. Terry. No, sir.
The Chairman. "Why did you see him?
Mr. Terry. If he was a friend of Brewster, and could get
The Chairman. You did not want him to make an appointment
with Sweeney for you. You did not want an appointment with
89330— 57— pt. 1 18
268 IMPROPER ACTIVITIES EST THE LABOR FIELD
Crosby. You only wanted one appointment, and that was to get to
Brewster. Was that not the whole purpose of your seeing him in the
first place?
Mr. Terry. Yes, sir.
The Chairman. All right.
Proceed, Mr. Counsel.
Mr. Kennedy. Did you make any arrangements with Mr. Hy Gold-
baum as to what you were going to pay him for performing this
service ?
Mr. Terry. No, sir.
Mr. Kennedy. You never discussed that?
Mr. Terry. No, sir.
Mr. Kennedy. You never discussed the fact that you would pay
him $7,500?
Mr. Terry. No, sir.
Mr. Kennedy. That is, for making this appointment?
Mr. Terry. No, sir.
Mr. Kennedy. You deny that there was any discussion of paying
him any money for making this appointment ?
Mr. Terry. Yes, sir. And I also want to correct the record here,
that as far as I am concerned, I didn't go down there for the specific
purpose or anything in mind that Goldbaum would fix up any kind
of an arrangement between Brewster and me.
The Chairman. Go ahead. You said that before.
Mr. Kennedy. You never discussed this at all, about paying money ?
Mr. Terry. No, sir.
Mr. Kennedy. Did you ever ultimately go up to Seattle to see Frank
Brewster ?
Mr. Terry. No, sir.
Mr. Kennedy. You never did?
Mr. Terry. No, sir.
Mr. Kennedy. Why did you break the appointment?
Mr. Terry. I didn't have an appointment,
Mr. Kennedy. I thought you said Hy Goldbaum called you and
said he had made an appointment.
Senator Mundt. You just got through telling us that.
Mr. Terry. Yes, I did.
Senator Mundt. All right, when did you see him?
Mr. Terry. I didn't see him.
Senator Mundt. Why not?
Mr. Terry. I didn't try.
Senator Mundt. Why not? You wanted an appointment, and he
made it. Why did you not go see him ?
Mr. Terry. Well, as far as I am concerned, in seeing Mr. Brewster
at that time, as far as Goldbaum was concerned, I never felt that
Goldbaum ever did anything.
Senator Mundt. Talking about Goldbaum, Goldbaum got you the
appointment with Brewster, the man that could give you the contract.
He said, "I got you the appointment." You spent a lot of money
going to Las Vegas to keep it. You called him long distance and then
you did not keep it.
Mr. Terry. I didn't call him long distance.
Senator Mundt. Goldbaum called you long distance and said you
had an appointment.
IMPROPER ACTIVITIES EST THE LABOR FIELD 269
Mr. Terry. He told me I had an appointment with Brewster,
Senator Mundt. What did you tell Goldbaum on the phone?
Mr. Terry. I think I told Goldbaum on the phone I didn't need to
see Mr. Brewster.
Senator Mundt. ^Vliy not?
Mr. Terry. There was no point to see Mr. Brewster.
Senator Mundt. AVliat is the point of all this business of going
to Las Vegas to get things fixed up with Brewster ?
Mr. Terry. I didn't go to Las Vegas to get it fixed up with Brewster.
(At this point, Senator McNamara left the room.)
Mr. Kennedy. You had all of these trips to see John Sweeney, you
went to Las Vegas to see Hy Goldbaum to get the appointment with
Frank Brewster, Hy Goldbaum makes the appointment with Frank
Brewster, and then you never keep it. Is that what you are saying?
Mr. Terry. Yes, sir.
Mr. Kennedy. Will j'ou tell us why you didn't keep it, after going
to all of this effort?
Mr. Terry. As far as Hy Goldbaum is concerned, I told Mr.
Sweeney — now you have me mixed up — I told ]Mr. Shear I was having
trouble with the union. He, in turn, told Caprie I was having trouble
with the union.
Mr. Kennedy. Don't go through all of that again. You have an
appointment. Take me from the time that Hy Goldbaum called you
and said, "I haVe done what you asked me to do, I made an appoint-
ment with Frank Brewster." Tell me, did j^ou go to Seattle after
he called you?
Mr. Terry. No, sir.
Mr. Kennedy. Did you go to Seattle after he called you?
Mr. Terry. It could be; yes, sir.
Mr. Kennedy. What did you go up for ?
Mr. Terry. To maybe see Mr. Sweeney.
Mr. Kennedy. Why did you want to see John Sweeney again?
Mr. Terry. Wliy not see John Sweeney again ?
The Chairman. You know what you went up there for. Maybe
you went for this or maybe you went for that. You got this appoint-
ment and you went up there to keep it, did 3^ou not?
Mr. Terry. No, sir.
Tlie Chairman. Don't you knoAv you did go up there to keep it?
Mr. Terry. No, sir.
The Chairman. You say under oath you did not ?
Mr. Terry. To go up and keep an appointment with Mr. Brewster ?
The Chairman. Yes, sir.
Mr. Terry. Yes, sir ; I say under oath I did not go up to keep an
apj)ointment.
The Chairman. Did you tell others you did go to see him up there ?
Mr. Terry. No, sir.
The Chairman. You say under oath you did not tell others that
you did go up there to see Brewster? You swear to that ? Don't you
know you reported to others that you did go up there to see Brewster
after these arrangements were made for you ?
Mr. Terry. Well, sir
The Chairman. You are under oath, and you do not have counsel
present. I think you have one here somewhere, but he is not present
270 IMPROPER ACTIVITIES IN THE LABOR FIELD
now. Ordinarily when counsel is present, I assume the fellow has
employed a lawyer of his own choice, and he expects a lawyer to take
care of him. You do not have counsel present, and I want to warn
you now that you are under oath. You have been repeating that.
You are conscious of it. I am asking you these questions because I
think I know what the answers are. You did go up there to see
Brewster, and you came back and told your friends about having gone
and told them before you went that you were going to see, him. Do>
you swear under oath that is not true ?
Mr, Terry. Mr. Chairman, I want to say this to you.
The Chairman. You can answer it yes or no.
Do you say under oath that is not true ?
Mr.* Terry. I say under oath that the best as I ever remember I
have never said to anybody at any time that I ever made a trip to
Seattle, anywhere else, to see Mr, Brewster, or did I ever have any
plans to see Mr. Brewster, or did I as far as I am concerned — maybe
I shouldn't be talking like this, but what I want to say to you is this,
that as I can remember now, and I am under the oath that I am, that I
never had any plans or any idea — well, I can't say that either.
The Chairman. No, I do not think so. You just said you had
that thought.
Mr. Terry. Let's put it this way : I never went to Seattle with the
specific purpose of seeing Mr. Frank Brewster.
The Chairman. Did you go there for the incidental purpose of
seeing him ?
Mr. Terry. Well, just a minute, sir.
The Chairman. You said not for the specific. I asked you did you
go for the incidental purpose of seeing him ?
Mr. Teri?y. There was a time when I was in Brewster's office and
1 could have seen Mr, Brewster if he had been in.
The Chairman. All right. Did you go to his office ?
Mr. Terry. Yes, I was in his office.
The Chairman. That was after Hy Goldbaum had made this
appointment for you, was it not ?
Mr. Terry. That I couldn't say for sure.
The Chairman. You know it was, do you not?
Mr. Terry. No, I do not.
The Chairman. You went up there after Goldbaum made the
appointment for you ?
Mr. Terry. I don't know if it was after or before, sir.
The Chairman. What was the date that Goldbaum made the ap-
pointment for you ?
Mr. Terry, t don't remember the date.
The Chairman, What was the date you were in Las Vegas and
saw him ?
Mr. Terry. The date that I was in Las Vegas and saw him — well, he
has the date.
Mr. Kennedy. You tell us.
The Chairjian, You tell us. If he cannot: refresh his memory,
Mr, Terry. Refresh my memory, please.
Mr. Kennedy. You went from Portland, Stan Terry and company
went from Portland to Las Vegas to San Francisco. After you went
to Las Vegas and saw Hy Goldbaum, did you come right back to
Portland?
IMPROPER ACTIVITIES IN THE LABOR FIELD 271
Mr. Terry. No, sir. You just said I went to San Francisco.
Mr. Kennedy. You have a number of trips here to Las Vegas.
Mr. TEitRY. On that particuhir trip, as I testified before, I went
down to Los Anj^eles, with Lou Dunis and his wife and my wife, and
we went back to San Francisco, I guess.
Mr. Kennedy. That is March 8 that you went to Las Vegas.
Mr. Terry. March 8.
The Chairman. March 8?
Mr. Terry. Yes.
The Chairman. And you were in Las Vegas then ?
Mr. Terry. Right.
The Chairman. How soon after did Goldbaum call you and tell
you he had the appointment for you?
Mr. Kennedy. He was also there on March 31. It could be either
one of the dates.
Mr. Terry. I was where March 31 ?
Mr. Kennedy. It has a trip here to Las Vegas, March 31; from
Los Angeles to I-ias Vegas. You were in Las Vegas on both of those
days.
Mr. Terry. Let's see. On March 31 you have that I was in Las
Vegas ?
Mr. Kennedy. That is the report from the United Airlines.
Mr. Terry. You have a report that I was in Las Vegas?
Mr. Kennedy. It says "Stan Terry and company, March 31, Los
Angeles to Las Vegas."
Mv. Terry. ]\Iarch 31 ?
The Chairman. And also March 8.
Mr. Kennedy. It could be either one of those dates.
Mr. Terry. I was in Los Angeles on March 8 ?
Mr. Kennedy. Come on.
The Chairman. All right. ^A^iether it was March 8 or March 31,
how long after you talked to Goldbaum did he call you long distance
and tell you that he succeeded in getting the appointment for you?
Mr. Terry. That I can't remember.
The Chairman. One day?
Mr. Terry. It could be 1 day or 1 week.
The Chairman. It could be 1 day or 1 week ?
Mr. Terry. Yes, sir.
The Chairman. How soon after you got that call did you go to
Seattle and see Brewster and go to his office? How soon after you
got that call did you go ?
Mr. Terry. I can't remember that, sir, because when I went to Mr.
Brewster's office, I was in the company of two other men, and I went
for the specific purpose of seeing John Sweeney.
Mr. Kennedy. Mr. Chairman, I can verify the date as March 31,
1955.
The Chairman. March 31.
Senator Mundi-. VTho were the two other men that went with
you ?
Mr. Terry. Just a minute, Mr. Chairman.
Excuse me?
Senator Mundt. Who were the two other men who went with you ?
Mr. Terry. Lou Dunis and his partner in Seattle.
Senator Mundt. They were with you in Mr. Brewster's office ?
272 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. Yes, sir.
Mr. Chairman, I know this might sound kind of funny, but are you
sure that I was in Las Vegas
Mr. Kennedy. You tell me what date you were in Las Vegas.
Mr. Terry. The only thing, Mr. Chairman, is if I was in Las Vegas
on March 31, if I was in Las Vegas on March 31, 1 was already in the
union.
The Chairman. That was after you had gotten in the union?
Mr. Terry. If it was.
The Chairman. That is your second trip down there?
Mr. Terry. Yes, sir.
The Chairman. What business
Mr. Terry. No ; I was only in Las Vegas once, sir.
The Chairman. Only in Las Vegas once ?
Mr. Kennedy. We will have to verify these records. It is sometime
in March, though.
The Chairman. Wliat date did you get into the union ?
Mr. Terry. I don't know what day I got in the union.
Mr. Kennedy. According to the records, you got into the union on
April 11, 1955.
Mr. Terry. That could be ; yes, sir.
Mr. Kennedy. That would be after the March 31 trip.
The Chairman. Is that according to the union records ?
Mr. Kennedy. That is according to the time he made his union
payment.
That is according to your own records, Mr. Terry, that you got
into the union on April 11, 1955.
Mr. Terry. Mr. Kennedy, do you have there a list? They asked
for all of my union books, asked for all of my books, your investiga-
tors, and there I save them the union books of mvself . On that book,
does it show what date it shows?
Mr. Kennedy. April 11, 1955.
Mr. Terry. Then as far as I was concerned, maybe I wasn't in the
union at that time.
The Chairman. Do you know whether you were or not?
Mr. Terry. On April 11 ?
The Chairman. April 11, 1 believe it is.
Mr. Kennedy. April 11.
The Chairman. You said you were in the union on March 31.
Mr. Terry. Yes, sir.
The Chairman. Are you sure of that ?
Mr. Terry. No, sir, I am not sure of it.
The Chairman. You are not sure of it. Do you have your union
card ?
Mr. Terry. Have I got my union card ?
The Chairman. Yes.
Mr. Terry. I don't have a union card.
The Chairman. Do you have the card that they gave you when
you joined the union at that time?
Mr. Terry. It is a union book, and the union book I gave to him,
and the union book is in Portland.
The Chairman. They gave you a book?
Mr. Terry. Yes, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 273
The Chairman. I thought when you johied tlic union they gave
you a card ?
Mr. Terry. They never gave me a card, sir.
The Chairman. Did you ioin witliout irottini!: a ciird ?
Mr. Terry. I guess I did.
The Chairman. It seems unusual. I thought they gave a card to
every member. Maybe I am wrong.
Mr. Terry. They certainly didn't give me a card. I don't have a
card.
The Chairman. You don't have a card. You never did get a card,
then. "VYliat were 3'ou paving off for. if you were not a member?
Mr. Terry. Paying off? I was ])aying dues.
The Chairman. I know\ You were paying dues and not getting a
card, not getting any certificate that you belonged, is that right?
Mr. Terry. They gave me a little sticker in my union book when I
paid my dues.
The Chairman. That is all you wanted, a sticker in the union book,
and that was the whole issue, was it not? You had to get a sticker
for your operations?
Mr. Terry. Xo, sir.
The Chairman. Did you get a union card?
Mr. Terry. No, sir.
The Chairman. They never did give you a union card ? They gave
you a card of withdrawal, did they not, prior to that?
Mr. Terry. They gave me a card of withdrawal, but I don't think
they ever gave me a union card.
The Chairman. Had you had a imion card before you had that card
of withdrawal ?
Mr. Terry. No, sir.
The Chairman. You are just one of those members that is associ-
ated in a kind of distant fashion and not actually a member of the
union, is that it?
Mr. Terry. Mr. Chairman, let me put it this way: As far as the
union is concerned, when I joined the union, Mr. Hildreth come over
and said, "Here are some application blanks. Fill tliem out."
We filled out the application blanks. Then on each man he would
say, "Have you ever belonged to a union before?" and if the answer
was "Yes" then, "Do you have a withdrawal card?" and if it was
"No" — well, those that had not belonged to a union had to pay a $25
initiation fee. If you had a withdrawal card, you did not have to
pay an initiation fee, and in my ]:>arti('ular case I said yes. I did have,
which they mailed to me.
The Chairman. "\A^ien you get in, do you not get a card showing
you are a member ?
Mr. Terry. When I got in the union, this was what I got.
The Chairman. Everybody tells me they are card-cai'iying mem-
bers of the union. I may be wrong about it.
Mr. Terry. Mr. Chairman, I am trying to tell you Avhat I got.
The Chairman. I did not get it. Go ahead.
Mr. Terry. You have me confused, sir.
The Chairman. If you are confused, we will take a recess.
Mr. Kennfj)y. Just on the question of Mr. Goldbaum, you said you
never paid Mr. Goldbaum anything?
274 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. No, sir.
Mr. Kennedy. Did you ever promise him anything?
Mr. Terry. No, sir.
Mr. Kennedy. Wliy did he perform this service for you ?
Mr. Terry. I don't know why.
Mr. Kennedy. Was it just because he liked you ?
Mr. Terry. I can't say for sure. I don't know why.
Mr, Kennedy. You had seen him for 15 minutes, you said, you dis-
cussed this matter, and he called to make an appointment with Frank
Brewster ?
Mr. Terry. I guess he did, sir.
Mr. Kennedy. And just because he liked you and you never prom-
ised him anything ?
Mr. Terry. I never promised him anything.
Mr. Kennedy. He never asked for anything.
Mr. Terry. He never asked for anything.
Mr. Kennedy. You never had a discussion about any money ?
Mr. Terry. Never had a discussion about any money.
Mr. Kennedy. Do you know why he complained later on that you
had not paid what you owed him ?
Mr. Terry, No, sir. I don't know why he complained later on.
The Chairman. We will recess until 2 o'clock.
(Thereupon, at 12:20 p. m., the committee recessed, to reconvene
at 2 p. m., the same day.)
(Senators present at the taking of the noon recess were Senators
McClellan, Mundt, and Goldwater.)
afternoon session
(The hearing resumed at 2 p. m.. Senator John L. McClellan, chair-
man, presiding.)
The Chairman. The committee will be in order.
(Present at the convening of the hearing were Senators McClellan,
McNamara, and Goldwater.)
The Chairman. Mr. Terry, will you come around, please ?
TESTIMONY OF STANLEY G. TEERY— Resumed
The Chairman. Mr. Kennedy, you may proceed.
Mr. Kennedy. Now, Mr. Terry, you say that Mr. Goldbaum per-
formed this favor for you and there was never any discussion of giv-
ing him anything for it ?
Mr. Terry. Yes, sir.
Mr. Kennedy. Did you ever mention to anyone, to anybody that
you had paid him ?
Mr. Terry. Did I ever mention to anyone that I had paid Mr.
Goldbaum ?
Mr. Kennedy. Yes.
Mr. Terry, No, sir,
Mr, Kennedy. Did you mention prior to meeting Mr. Goldbaum
that you would pay him if he could get you in the union ?
Mr. Terry, No, sir,
Mr. Kennedy. Did you ever mention in your conversation with
IMPROPER ACTIVITIES IX THE LABOR FIELD 275
Mr, William Caprie that you were going to take care of Hy Goldbaum
if he got you in the union ?
Mr. Terry. Did I ever say to Caprie I was going to take care of
him ?
Mr. Kennedy. No, did you ever say to Mr. William Caprie that
you would take care of Hy Goldbaum if through Brewster be could
get you in the union ?
Mr. Terry. No, sir.
Mr. Kennedy. You never mentioned anything like that?
Mr. Terry. I never mentioned anything like that to Caprie.
Mr. Kennedy. Did you discuss this matter with Caprie ?
Mr. Terry. The discussion on that with IMr. Caprie, I was with
Mr. Caprie for several hours over at his house and back, and during
rhat time there could have been some discussion about me going over
and seeing Mr. Goldbaum. But as to giving Mr. Caprie or anybody
else any inference that I was going to take care of or pay Mr. Gold-
l>aum anything, I didn't do it.
Mr. Kennedy. You never indicated to Caprie that you would take
care of Goldbaum if you got into the union ?
Mr. Terry. As far as I am concerned, I never indicated to Mr.
Caprie any circumstances.
Mr. Kennedy. You never discussed that at all ?
Mr. Terry. As far as I can remember T never discussed it at all.
Mr. Kennedy. Do you think it is possible that you might have
discussed it ?
Mr. Terry. I don't think it is possible.
Mr. Kennedy. Would you deny that you discussed it?
Mr. Terry. I would say this, and sa}^ it again, that I never gave
any inference or never discussed anything or never tried to infer to
Mr. Caprie under any circumstances that I would give Mr. Goldbaum
anythinsf.
Mr. Kennedy. Now, I want to read this, Mr. Chairman. We have
an affidavit here from Mr. William Caprie.
The CiFAiRMAN. The affidavit may be read and the witness interro-
gated about it.
Mr. Kennedy. I will read the whole thing.
The Chairman. The affidavit may be printed in the record at this
point.
Mr. Kennedy (reading) :
I, William Caprie, a resident of Las Vegas, make this statement voluntarily
of my own free will, in the presence of Jerome Adlerman and Alphonse Cala-
brese, known to me to be investigators for the Senate Select Committee for
Improper Activities in Labor or Mana-.'ement Field.
During the early part of 1955, I was desirous of selling a mortgage which I
hold or held on the Flamingo Hotel, Las Vegas. Nev. On one of :Mr. Ben Shear's
trips to Las Vegas I discussed such .sale with him, and Mr. Shear stated he
thought Stan Terry whom he knew to be a coin-machine operator in Portland
might be interested in the purchase of the mortgage.
I do not recall exactly how much time elapsed between my conversation with
Mr. Shear, and the time Mr. Stan Terry came to Las Vegas, approximately in
the spring of 1955.
During the discussion of the proposed sale, Stan Ten-y told me he bad some
trouble with the teamsters union, and that he was desirous of joining the union,
but the union officials wouldn't let him. I believe I told Terry that Hy Gold-
baum knew Brewster and TeiTy asked me to intercede for him in an effort to
get into the union.
276 IMPROPER ACTIVITIES IN THE LABOR FIELD
I don't recall whether I telephoned Hy Goldbaum or whether I spoke to him
a few days later, but I do recall speaking to him. I told Ily Goldbaum that I
knew Stan Terry, who was a coin-machine operator in Portland, and that Terry
had trouble with the teamsters union. He wanted to get into the union but they
would not let him in. I asked Mr. Goldbaum to call Brewster and to ask Mr.
Brewster if he could straighten things out for Terry.
I can't recollect whether Terry was present when I telephoned or siwke to
Goldbaum. I can't recall whether I gave Mr. Terry the address and telephone
number of Mr. Hy Goldbaum in Los Angeles. I cannot recall whether Terry and
Goldbaum met or spoke together before Goldbaum spoke to Brewster. I am
sure Goldbaum spoke to Brewster because Goldbaum told me he did.
In answer to the question whether Terry indicated that he would be willing to
pay to get into the union, I can only answer that I was under the impression that
Terry was going to take care of Goldbaum. I might say that Terry indicated
that he would take care of Goldbaum if he could get into the union. I can't
recall having any conversation with Terry concerning his willingness to pay
union officials to get into the union. The only impression I have of my con-
versation with Terry is that he indicated that he would take care of Goldbaum
for any service he could do for him in getting him into the union.
I recall discussing this matter with Hy Goldbaum on several occasions. The
last time was about 6 months ago when the publicity was given to the team-
sters situation in Portland. In the course of these conversations Hy Goldman
remarked to me that I had "a fine friend" and that Terry had never kept his
promise to take care of him.
I have read this statement carefully and state that the contents are true.
Signed, William Caprie.
Witnessed by Jerome Adlerman and Alphonse Calabrese and Mr. Krays, who
is his attorney.
Sworn to me before this 21st day of February, 1957, at the Flamingo Hotel,
Nev. Francis B. Gordon.
The Chairman. We will proceed.
Mr. Kennedy. Was that statement of Mr. Caprie's correct?
Mr. Terry. Mr. Kennedy, let me say this to you : I am here under
oath to tell the truth, and the whole truth. After listening to the
letter that you just read to me, I want to repeat to you what I said
previously. I at no time indicated or said to Mr. Caprie or gave him
any reason so far as I understand that I was going to take care of
Mr. Goldbaum, Mr. Caprie, or Mr. Shear, or anyone else.
Mr. Kennedy. ^Vliat would be the reason for Mr. William Caprie
to make such an affidavit ?
Mr. Terry. What goes on in Mr. Caprie's head is something I
can't answer.
Mr. Kennedy. Now, did you pay $10,000 to Mr. Frank Brewster,
either in San Francisco, Los Angeles, or Seattle?
Mr. Terry. Mr. Kennedy, I want to say again that I am here under
oath and of my own free will I say I did not.
Mr. Kennedy. Did you ever make a statement to anyone that you
had paid Mr. Frank Brewster $10,000 or a large sum of money?
Mr. Terry. As near as I can remember, or as near as I can say any-
thing, in other words when you make a statement like that it is broad
and general, maybe sometime in jest to somebody else along the line
you make some remark that could be construed that way. But here
in this committee room I want to say to you that the meaning you
give there, I did not.
Mr. Kennedy. Did you ever make a statement to anyone that you
had paid $10,000 or a large sum of money to Frank Brewster in order
to get into the union ?
Mr. Terry. Mr. Kennedy, would you repeat the question again,
please ?
Mr. Kennedy. Would the reporter read it back ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 277
(Previous question read by the reporter.)
Mr. Terry. No, sir.
Mr. Kennedy. You never did ?
Mr. Terry. No, sir.
Mr. Kennedy. Why could you not have denied that originally when
T asked you the question ?
Mr. Terry. Well, Mr. Kennedy, let us go back. You never asked
me the question before.
Mr. Kennedy. Did you ever have any discussion about i^aying any
sum of money to Frank Brewster in order to get in the union?
Mr. Terry. As far as I remember I had no discussion.
Mr. Kennedy. Would you not remember that kind of a discussion?
Mr. Terry, I think that I would remember that kind of a discussion.
As I sit here now before you I have no recollection of such a conver-
sation. I don't think that I made such a conversation.
Mr. Kennedy. You don't think that you ever had such a conver-
sation ?
Mr. Terry. I don't think so.
Mr. Kennedy. Is it possible that you would have had such a con-
versation?
Mr. Terry. No, it is not possible.
Mr. Kennedy. So you deny that you had such a conversation.
Mr. Terry. I don't know what the rules are, or what I might be
subject to. I came here with the State advisers telling me that I was
in pretty bad trouble, or whatever it happens to be, but I would say
this : I am trying to make it clear to you that as far as I remember,
I never had any discussion, and I never have made any statement
that I ever gave Frank Brewster whatever he said I gave him. What
did he say I was supposed to give him ? It was $10,000.
Mr. Kennedy. Did you ever discuss giving him anything ?
Mr. Terry. As far as I remember, I never discussed giving him any-
thing because I never gave him anything.
Mr. Kennedy. Do you think it is possible that you did discuss it?
. Mr. Terry. No, sir, I don't think it is possible. It could have hap-
pened in a jest like I said before, someone doing this. But anyway as
far as I am concerned, my statement is here, and I am trying to make
it clear to you that that is the way it is.
Mr. Kennedy. Did you ever state to anyone that the teamsters
union officials would not allow you to join the union unless you put
what was equivalent to a teamster union official on your payroll for
a year?
Mr. Terry. Equivalent to putting a teamster union official on my
payroll for a year?
Mr. Kennedy. For a year.
Mr. Teruy. No, I don't think I ever made a statement like that.
I don't know where you would get that.
Mr. Kennedy. Do you deny making that kind of a statement?
Mr. Terry. Al)out putting the teamsters union on the payroll?
Mr. Kennedy. A teamster union official on your payroll for a year.
Mr. Terry. I never made the statement that I had to put a teamster
union, nor did I ever tell anyone I had to put a teamster union official
on the payroll.
Mr. Kennedy. Did you ever say you had to pay any teamster union
official the equivalent of putting somebody on the payroll for a year ?
278 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry, As far as I can remember, I have never made a state-
ment to anybody tliat I had to give anything equivalent to putting a
teamster union official on the payroll.
Mr. Kennedy. Do you deny that you ever made that statement?
Mr. Terry. I thought I just denied it.
Mr. Kennedy. You said that you couldn't remember having said
such a thing. Do you deny having said it ?
Mr. Terry. Yes, I guess as far as I can remember, I deny I made it.
Mr. Kennedy. Now, Mi\ Terrv, do you know Mr. Lasko? Mr. A. W.
Lasko?
Mr. Terry. Yes, sir.
Mr. Kennedy. What is his position ?
Mr. Terry. Mr. Lasko is one of my competitors in Portland, Oreg.
Mr. Kennedy. In the coin-machine operators ?
Mr. Terry. Yes, sir.
Mr. Kennedy. We have a 3 or 4 page affidavit here, and could we
put this in the record, Mr. Chairman, and I will read the last para-
graph, which is pertinent to this particular inquiry.
The Chairman. It is duly sworn to, is it ?
Mr. Kennedy. Yes, it is sworn to, by R. DeMatt, clerk of the United
States district court, by Thara Lund, deputy, 15th day of February.
The Chairman. It may be printed in the record in full at this point
and pertinent parts of it you wish to interrogate the witness on may
be read.
(The affidavit referred to follows :)
KooM .510 United States Courthouse,
Portland, Oreg., February 15, 1957.
State of Oregon,
County of Multnomah , ss:
I, Albert W. Lasko, make the following true and voluntary statement to
Alphonse Calabrese, who has identified himself to nie as a member of the pro-
fessional staff of the United States Senate Select Committee on Improper Ac-
tivities in the Labor or Management Field. No offer of promises or any threats
have been made to me for making this voluntary statement.
I reside at 9721 Southeast Linwood Avenue, Portland, Ore., and up until
the latter part of 1956 was secretary-treasurer of the Coin Machine Men of
Oregon, hereinafter referred to as CMiMO. The C^MMO is a statewide organi-
zation, with headquarters in Portland, of pinball and coin-machine operators
and distributors.
In the latter part of 1954 the teamsters' union in Portland was making a drive
to bring the coin-machine operators and distributors and their employees into
the union and in furtherance of this aim they wanted CMMO to sign a contract
with Teamsters' Union Local 223, recognizing that local as the bargaining agent
for all the employees of the members of CMMO. I, in the company of VTilliam
Goebel and Harry Arnsberg, both officers in the CMMO, met with Clyde Crosby
in the Teamsters Building for the purpose of turning over a pi-oposed contract
with the local union. Crosby wanted to look over the proposed contract.
Another meeting of the CMMO was held at a subsequent time, the exact date
I do not recall, but know it was prior to the signing of the contract with the
union, which was the first part of March 1955. At this meeting, Stan Terry,
who had been very active in urging the members to agree to join the union,
got up and spoke and stated that Clyde Crosby had gone over the proposed
contract and he wanted the bylaws in the contract to be the same as the bylaws
in the contract which the teamsters' union had with the pinball machine organi-
zation in Seattle, Wash. In addition, Crosby wanted the names of the locations
and the number of pinball machines at the locations of each member of the
CMMO. This information was to be placed in individually sealed envelopes.
Terry had no explanation as to why this was necessary. As far as I know,
the membership complied with these requests. Stan Terry and Lou Dunis also
IMPROPER ACTIVITIES IN THE LABOR FIELD 279
complied, although it was known to the membership that they could not get
into the union and the reason for this situation wasn't known.
On the day that the contract was signed, I, in the company of William Goebel,
went to Clyde Crosby's office, at which time Goebel and I signed for the CMMO
and also turned over to Clyde Crosby the sealed envelopes. Just before I signed
the contract I asked Crosby why the bylaws had to be the same as the bylaws
in the Seattle contract and he replied that it was for bookkeeping purposes and
that it would be easier all around if the conditions of the contracts were the
same. I also asked him why the names of the locations and the number of pin-
ball machines in the locations of each coin machine operator was needed, and
he stated that they needed this information to determine how many union
stickers which were to be placed on the machines would be required. I then
tod Crosby that I purchased my pinball machines from Lou Dunis, who not
only was a coin machine operator, but also a distributor and that if he were
not allowed in the union that I might encounter some difficulty from local union
223. I also stated that Stan Terry had instituted legal action with regard to
the legalization question of the pinball machines, which was then in question,
and that actually he was the "front" for the Coin Machine Men of Oregon in this
litigation. Further, if he was not allowed into the union the CMMO might
become involved in the legal action, which they did not prefer.
In reply, Crosby told me that Terry and Lou Dunis would come into the
union as soon as they got "squared off" with Mr. Sweeney in Seattle, and that
Sweeney would let him, Crosby, know when they could come in. I subsequently
learned that Stan Terry and Lou Dunis made several trips to Seattle and on 1
occasion Terry and Dunis were made to wait for 4 hours outside of Sweeney's
office before he would see them.
During this period that Terry was making contact with Sweeuey, Terry told
me that they wanted him to pay the salary of a teamsters' union official for
1 year as a consideration for being allowed to join the union. This statement
was made to me by Terry in his office or in the office of Luu DunLs with just
Terry and myself being present.
This statement consisting of four pages, which has bpcii read by me, is trut^
and correct to the best of my knowledge.
Albert W. Lasko.
Signed in the presence of :
Alphonse F. Calabrese.
Jerome L. Adlerman.
Sworn to and subscribed before me on the 15th day of February 1957.
R. DeMatt,
Clerk, United States District Court.
By Thara Lund, Deputy.
Mr. Kennedy (reading) :
During this period that Terry was making contact with Sweeney, Terry told
me that they wanted him to pay the salary of a teamsters' union official for
1 year as a consideration for being allowed to join the union. This statement
was made to me by Terry in his office or in the office of Lou Dunis with just
Terry and myself being present.
This statement ccmsisting of four pages, which has been read by me, is true
and correct to the best of my knowledge.
You never made that statement ?
Mr, Terry. I would say as far as that statement and Mr. Lasko is
concBrned, I never made that statement to Mr. Lasko, and I don't
think that he realizes what he said because he can't even remember
which office it is.
Tlie Chairman. Are there any further questions?
All right, you may stand aside for the present.
Mr. Kennedy. Mr. Hy Goldbaum is the next witness.
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. Goldbaum. I do.
The Chairman. Be seated. We will proceed.
280 IMPROPER ACTIVITIES EST THE LABOR FIELD
TESTIMONY OF HY GOLDBAUM
The Chairman. Will you state your name, your place of residence,,
and your business or occupation ?
Mr. GoLDBAUM. Hy Goldbaum, 13404 Tierra Street, Los Angeles,.
Calif., and I work for the Flamingo Hotel, in Las Vegas, Nev.
The Chairman. You are familiar with the rules of the committee-
with respect to counsel. Do you waive counsel ?
Mr. Goldbaum. Yes, sir. Just before we go on with this, sir, I
have been under a lot of strain and stress for 7 years and I am in a very
nervous condition and if you will just take it a little easy I will try to
give you the truthful answers to the best of my knowledge.
The Chairman. We are going to take it easy. Do you want the
cameras to desist while you are testifying ?
Mr. Goldbaum. Take what they want now and get through with it.
The Chairman. All right, that will be done.
Mr. Kennedy. Mr. Goldbaum, you work in Las Vegas, do you not?
Mr. Goldbaum. I work in Las Vegas, and I go up every Thursday
and I leave every Sunday.
Mr. Kennedy. Where do you live when you are not in Las Vegas?
Mr. Goldbaum. 13404 Tierra Street, in Los Angeles. That is a Van
Nuys mailing address.
Mr. Kennedy. You came from where originally, Mr. Goldbaum?
Mr. Goldbaum. My original background, you mean?
Mr. Kennedy. Yes, please.
Mr. Goldbaum. I came to Los Angeles in 1924 from San Francisco.
Mr. Kennedy. You were born in San Francisco ?
Mr. Goldbaum. I was born in Oceanside, Calif.
Mr. Kennedy. You came up to Los Angeles?
Mr. Goldbaum. I came to Los xingeles and I went to San Fran-
cisco.
Mr. Kennedy. In 1924 you went to San Francisco.
Mr. Goldbaum. No, it is so far back, in 1906 or 1907 my folks moved
to San Francisco and I stayed there all of that time and then I came
to Los Angeles. I left San Francisco and came to Los Angeles in
1924.
Mr. Kennedy. Did you live in Los Angeles after that ?
Mr. Goldbaum. I have been in Los Angeles continuously.
Mr. Kennedy. Since 1924?
Mr. Goldbaum. No, I moved to Las Vegas, Nev., in 1948, and I
moved up there, I believe.
Mr. Kennedy. Wliat kind of work did you go into when you got
to Los Angeles?
Mr. Goldbaum. I have always been in the horse business all of my
life, a handicapper of horses around the racetrack.
Mr. Kennedy. You have been interested in the gambling business ?
Mr. Goldbaum. In the gambling business; yes, sir.
Mr. Kennedy. Since 1924 or prior to that time ?
Mr. Goldbaum. Prior to that time in San Francisco I had a card-
room, and before that, a legalized cardroom.
Mr. Kennedy. Now, in Los Angeles, did you know Mr. Buggsie
Siegal?
Mr. Goldbaum. No, sir.
Mr. Kennedy. You never met him ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 281
Mr. GoLDBAuM. No, sir.
Mr. Kennedy. Did you have anything to do with the Hollywood
Sphinx Club?
Mr. GoLDBAUM. No.
Mr. Kennedy. Did you know Dave Eubin ?
Mr. GoLDBAUM. Dave Rubin, yes ; I do.
Mr. Kennedy. But you never had anything to do with him and the
Hollywood Sphinx Club?
Mr. Goldbaum. I didn't know he had anything to do with it, and I
don't know what it is.
Mr. Kennedy. Did you know Mickey Cohen ?
Mr. Goldbaum. I know of him and I have talked to him, but I never
had anything to do with him.
Mr. Kennedy. Did you ever have any book out of the Hotel El
Eancho at Las Vegas ?
Mr. Goldbaum. No, sir.
Just to correct a statement, I had an office at the Flamingo Hotel,
if that is what you are interested in finding out.
Mr. Kj:nnedy. But you never had any kind of book out of there,
horse book out of there ?
Mr. Goldbaum. I had an office in the Flamingo as commissioner.
Mr. Kennedy. How is that different from what I asked you ?
Mr. GoLDBAUir. You asked me about the El Rancho.
Mr. Kennedy. That is at the Flamingo.
Mr. Goldbaum. Yes, sir. I was a betting commissioner.
Mr. Kennedy. What is a betting commissioner ?
Mr. Goldbaum. A betting commissioner, Mr. Kennedy, is if you
in Washington, D. C, bet me $1,000 on a horse, I conduct my business
like any stockbroker's office. You bet me $1,000 on a horse, and I sell
that business around in Las Yegas, or Los Angeles and maybe I make
214 or 5 percent on the deal.
Sir. Kennedy. Somebody who laid off bets ?
Mr. Goldbaum. I was a commissioner, like if you bought a stock,
you pay a commission for it. The man who bought a horse for me, he
pays the same thing.
Mr. Kennedy. When you say "buy a horse," you mean bet a horse ?
Mr. Goldbaum. Bet on a horse, that's right. Is that what you do
from Thursday to Smiday ?
Mr. Goldbaum. No. The Government passed a law in 1951 and put
us out of business when they put in the 10-percent law. Everything
you handle now you have to pay 10 percent on.
Mr. Kennedy. iSo you don't do that anymore ?
Mr. Goldbaum. No, sir.
Mr. Kennedy. What do you do in Las Vegas ?
Mr. Goldbaum. In Las Vegas during the weekends I work in the
pit. The pit is a big gambling casino and I stand around and watch
that people don't steal.
Mr. Kennedy. "Wliat do you do from jNIonday to Thursday ?
Mr. Goldbaum. I am a collector for the Flamingo Hotel.
Mr. Kennedy. What is that?
Mr. Goldbaum. I correct the bad markers, and collect the markers,
and try to run down the bad checks.
Mr. Kennedy. You do that in Los Angeles ?
282 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. GoLDBAUM. I do that in Los Angeles ; all over.
Mr. Kennedy. Then you go back.
Mr. GoLDBAUM. I go every Thursday night to Las Vegas.
Mr. Kennedt. You know Mr. Frank Brewster, do you not ?
Mr. GoLDBAU3i. Yes, sir.
Mr. Kennedy. Were you ever involved in any business with him?
Mr. GoLDBAUM. None whatsoever. My acquaintance with Mr.
Brewster was he lived in the same apartment house I did at the Model
Chino Apartments, and I moved in there about 1935, I think, and he
was there before I was. He used to keep an apartment there, and if
he came into town once a month or twice a month, I might see him in
the lobby and say "hello" to him, and that is all.
Mr. Kennedy. Do you know Mr. Caprie? Do you, know George
Caprie ?
Mr. GoLDBAUM. He is my partner.
Mr. Kennedy. Where did you know Mr. George Caprie?
Mr. GoLDBAUM. I met Mr. George Caprie many years ago, in Los
Angeles.
Mr. Kennedy. And you have been partners ?
Mr. GoLDBAUM. For many years.
Mr. Kennedy. But Mr. Frank Brewster has never been a partner of
yours in anything ?
Mr. GoLDBAUM. Absolutely not.
Mr. Kennedy. He never had any interest in any of your businesses ?
Mr. GoLDBAUM. Absolutely not.
Mr. Kennedy. Now, you served some time for income tax violation ?
Mr. GoLDBAUM. Yes, sir.
Mr. Kennedy. '^'N^ien was that ?
Mr. GoLDBAUM. I was convicted in 1952 and the Supreme Court
ordered me remanded, I think — I surrendered December 6, 1958, and I
went to McNeil's Island and I stayed there for 9 months, I believe.
After I was there 9 months, one day the warden called me in and he
said, "The Supreme Court just handed down a ruling; they made a
mistake in your case."
Mr. Kennedy. So you got out?
Mr. GoLDBAUM. They put us out on $10,000 bail. I was out 7 or 8
or 9 months and they sent my case back to the ninth circuit in San
Francisco, and the ninth circuit ordered me back to the penitentiary,
and after I found that out, Mr. Irving Goldstein, who represented me,
said, "We can go back to the Supreme Court again on another writ,"
and so he said, "Dig up more money," and I said, "Well take it back;
I don't want to go back up there." After I was in the Supi-eme Court
about 2 weeks, one morning my telephone rang and Mr. Ed O'Connor,
one of my original attorneys, said to me, "I was out to dinner with
Judge Harrison," the judge we had the case before without any jury,
"and he said, 'I am so disgusted the way the Government is handling
these defendants, kicking them around; if they will drop all of their
appeals and come before me, I will pvit them on probation.' "
So about 6 weeks later. I pulled a mandate out of the Suoreme Court
and I came before Judge Harrison, and he put us on probation.
Mr. Kennedy. And you are still on probation ?
Mr. GoLDBAUM. Yes, sir.
Mr. Kennedy. You have permission to travel ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 283
Mr. GoLDBATjM. To any place.
Mr. Kennedy. From Los Angeles ?
Mr. GoLDBAUM. When I went up to the probation officer, Mr.
Devlin, I told him my job, and he said, "That's all right; if you
stay away 2 or 3 weeks, let me know, but a couple of days don't
mean a thing."
Mr. Kennedy. IVIr. George Caprie was at McNeil Island ?
]Mr. GoLDBAUM. Yes, sir : he is my partner.
Mr. Kennedy. And also Mr. Lester Beckman ?
Mr. GoLDBAUM. He has nothing to do with me. He was there when
I got there.
]Mr. Kennedy. He was there when you got there ?
]\Ir. GoLDBAi 31, Yes, sir.
Mr. Kennedy. You met him at McNeil Island ?
Mr. GoLDBAUM. He was my roommate.
Mr. Kennedy. When the members of the staff of this committee
interviewed you, Mr. Goldbaum, you stated that you had not met
Mr. Stanley Teriy ])rior to the time he got in the union ; is that right?
Mr. Goldbaum. There seemed to be a little discrepancy there, Mr.
Kennedy.
Mr. Kennedy. Is that not what you stated to us: That you had
not met Stanley Terry prior to the time he got in the union?
!Mr. Goldbaum. I never knew whether lie got in the union until I
heard it here today ; Mr. Terry testified to that.
Mr. Kennedy. But you said at the time
Mr. Goldbaum. I believe I might have made that statement.
Mr. Kennedy. Do you want to correct that ?
Mr. Goldbauim. I don't know when he got in the union.
Mr. Kennedy. He got in the union in March of 1954.
Mr. Goldbaum. I thought that I met him later, but he testified he
Avas in Las Vegas in March, and so I must have met him then, in
March.
Mr. Kennedy. So you spoke to him prior to the time that he got in
the union ; is that right ?
]Mr. Goldbaum. When he was in Las Vegas, I talked to him, for the
one and only time, and whatever date that was, that is the date I talked
to him.
Mr. Kennedy. He had not gotten into the union at that time and he
wanted to talk to you about it?
Mr. Goldbaum. I never discussed anything about that.
]Mr. Kennedy. You never discussed about the union?
Mr. Goldbaum. No, sir.
Mr. Kennedy. What did you discuss?
]Mr. Goldbaum. Nothing; I just said to him, Mr. Bill Caprie in-
troduced me to him and he said, "This is Stan Terry," and I said,
"How are you?" and Mr. Caprie and I were going down to bet on a
horse, and I don't tliink he Avas there 3 minutes.
Mr. Kennedy. Did you ever have any discussion with Mr. Stan
Terry ? Is that the only time you ever discussed this ?
Mr. Goldbaum. That is the only time I ever talked to Mr. Te:ry.
Mr. Kennedy. Did you ever discuss Frank Brewster with him?
Mr. Goldbaum. No, sir.
89330—57 — pt. 1 1!)
284 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. Did you ever discuss making an appointment with
Frank Brewster?
Mr. GoiiDBAUM. On the plione I talked to liim. I made an appoint-
ment for Mr. Terry to the best of my knowledge, I thought it was in
January, because I know I believe Mr. Shear was there for Xew
Year's, and Mr. William Caprie asked me, and said, "I want to sell
my mortgage to Stan Terry," and I said, "Bill, if I can do you a
favor, I'll gladly do it." That is George Gaprie's brother.
The Chairman. Let us get this a little clearer. Xow according to
Mr. Terry, he saw you sometimes apparently in March, either March
8, or March 31.
Mr. GoLDBAUM. That is what he testified here today.
The Chairman. That is the time of the flight ^
Mr. GoLDBAUM. "^'^Hiat is that ?
The Chairman. That is the time of the flight, at least ?
Mr. GoLDBAUM. Yes, sir.
The Chairman. You say at that time, and you heard his testimony,
you say he did not request you to make an appointment for him with
Frank Brewster'^
Mr. GoLDBAUTvi. To the best of my knowledge I thought I made the
appointment for him in January.
The Chairman. Obviously you are mistaken, I think, from every-
thing we have heard. Whether it was Januaiy, March, or April, or
whenever it was, when you talked to him, do you say no^v under oath
that he did not request you to help him out with Frank Brewster ?
Mr. GoLDBAUM. Yes, sir.
The Chairman. You say positively ?
]\Ir. GoLDBAUM. Positively I did not discuss it.
The Chairman. Why did you make an a})pointment with Frank
Brewster for him ?
Mr. GoLDBAUM. Mr. William Caprie asked me if I could make an
appointment with Mr. Brewster. I remember very distinctly, sir, I
happened to be at the racetrack 2 or 3 days later, and I know Santa
Anita was running and I know it was in January.
The Chairman. He had asked you to make an appoiiitme!it for
Terry, a man yon did not know ?
Mr. GoLDBAi 31. Yes, sir.
The Chairman. All right. When you met Terry, you did not talk
about it ?
Mr. Goldbaf:ji. It didn't amount to anything and I wasn't inter-
ested.
The Chairman. I understand you were not interested. You were
just interested enough to call up and make that appointment.
Mr. GoLDBAUM. Certainly.
The (Chairman. But you have not talked about it ?
Mr. Goldbaum. No, sir.
The CTLMR:\rAN. Now, do you think anybody is going to believe
that ? Here is a stranger you never had seen before.
Mr. GoLDP>AUM. 1 did it for Mr. Caprie. And Mr. Caprie had been
a friend of mine.
The Chairman. You <lid it for Caprie after vou had met Stan
Terry ?
Mr. Goldbaum. I did it for Caprie.
The Chairman. After you met Stan Terry ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 285
Mr. GoLDKAUM. I did it before I met Mv. Terry.
The Chairman. You mean that you did it before you ever met the
man ?
Mr. GoLDBAusr. To the best of my knowledge, if I don't move off
this chair ; yes, sir.
The Chairman. All right ; pi-oceed.
Mr. Kennedy. Did you ever discuss with Mr. Terry about the
money he was going to pay you for doing it?
Mr. GoLP/BAUM. There was no money ever discussed anyway.
Ml". Kennedy. Did you ever complain about the fact that you had
not received an}- ?
Mr. GoLDBAFM. I might iiave in a kidding way said, "He is a fine
guy: never even took care of me for doing him a favor."
Mr. Kennedy. You might have said something like that ?
Mr. GoLDBAUM. I might have said to that effect, and I pop off a lot.
Mr. Kennedy. This is Mr. William Caprie's affidavit that is in the
record.
Mr. GoLDBAu?.!. I have got the affidavit in my pocket, and I have
read it.
I recall diseussin?,^ tbi>; matter with Hy Goldbaum on several occasions, and
the last time was 6 montlis ago, when the publicity was given to the teamster situ-
ation in Portland. And in the course of these conversations Hy Goldbaum re-
marked to me that I had a fine friend, and that Terry had never kept his promise-
to take care of me.
T d.on't Ivnovr \\hat arrangement hv liad. but he nevei- made any
promise to me, and I never discussed it with him.
The Chairman. He said here you discussed it with him several times
in his affidavit.
Mr. Goldbaum. Who?
Mr. Kennedy. Mr. William Caprie.
Mr. Goldbaum. Tliat was the impression he got, and I believe the
word "impression'' is in there.
The Chairman. He said "I recall discussing this matter with Hy
Goldbaum on several occasions."
Mr. Goldbaum. That is '"recall." He had the impression.
The Chairman. You are putting the "impression" in here.
Mr. Goldbaum. I thought that I read it that way, and I could be
wi'ong.
The CiTAiR^MAN. Do you have another one? There has been some
change going on according to some testimony this morning, and let us
see if yours is changed.
^Ir. GoLDi^Auid. On what page are you reading ?
The Chairman. I am reading the last paragraph of the affidavit^
the original.
Mr. Goldbaum (reading) :
I recall discussing the matter with Hy Goldbaum on several occasions.
The Chairman. A little louder.
Mr. Goldbaum (reading) :
I rooaH discussing the uiiitter with Ily Goldbniim on sevei-al occasions and the
last time about (! months ago, when the publicity was given to the teamsters union-
situation in Portland.
T don't remember discussing that with him.
286 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Is that true or not true, that you did discuss it with
him on several occasions ?
Mr. GoLDBAUM. I discussed what ^
The Chairman. "VVliat he is talking about.
Mr. GoLDBAUM. I don't know what he is talking about. I don't
remember discussing this.
The Chairman. How long have you had that copy of the affidavit?
Mr. Goldbaum. I got it when I went up there last Thursday, and
he gave it to me to read.
The Chairman. You have had over a week, have you not, to read
it?
Mr. GoLDBAuM. Yes, sir; and I still can't make any sense out of it.
The Chairman. You can't make any sense out of it ?
Mr. Goldbaum. No.
The Chairman. It is pretty plain what he is talking about there;
isn't it ?
Mr. GoLDBAUM. I discuss a lot of things, but it didn't mean a darn
thing to me.
The Chairman. It didn't mean anything, only you had not been
taken care of?
Mr. Goldbaum. I wasn't expecting anything, literally.
The Chairman. You just had done something for a stranger and
you did not expect anything at all ?
Mr. Goldbaum. I have been crazy all of my life and I guess I'll
keep on being so.
The Chairman. I am not sure, and I am not going to argue the
point with you at least, if you want to leave that in the record.
Mr. Goldbaum. The warden told me once, he said, "You must be
crazy, a man like you, to come up here and sing and kid all the time,"
and I said, "Wliat's the use ; I am not going to let it worry me."
The Chairman. You don't worry about those things?
Mr. Goldbaum. I worry, but I have had so much
The Chairman, Now let us go down to facts.
Mr. Goldbaum. All right.
The Chairman. Do you want to state under oath that you did not
have these conversations with your friend ?
Mr. Goldbaum. I might have discussed it, but there was nothing
about it.
The Chairman. Wliy would you be discussing it over and over
again, as he said ?
Mr. Goldbaum. We were just talking in a general line of con-
versation.
The Chairman. It must have been on your mind.
Mr. Goldbaum. Nothing was on my mind, and I never asked about
it again.
The Chairman. You never asked about it again ?
Mr. Goldbaum. Thio is 6 months ago, isn't it?
The Chairman, He says, "On several occasions, and the last time
about 6 months ago."
Mr. Goldbaum. I never thought of discussing it with him because
I wasn't interested.
The Chairman. One of you is not telling the truth. Do you want
to say that your friend who has given this affidavit is not telling the
truth?
IMPROPER ACTIVITIES IN THE LABOR FIELD 287
Mr. GoLDBAUM. He might be telling the truth, and
The Chairman. Well, you would know.
Mr. GoLDBAUM. I don't know.
The Chairman. I am asking you now whether that affidavit is true
or not.
Mr. Goldbaum. If he said it is true, it must be true, but I do not
remember discussing anything about it.
The Chairman. Then it is true. Then it was on your mind that
you kept talking to your friend about it, who had introduced him to
you?
Mr. Goldbaum. I never discussed anything on my mind that I re-
member, and what he talked about, I don't know.
The Chairman. He said you were doing the talking.
JSIr. Goldbaum. I never did it.
The Chairman. You ought to know what vou are talking about.
Mr. Goldbaum. I talk with him about a lot of things.
The Chairman. I am sure that you do, and I am quite confident
that you talked to him about this. Aren't you?
Mr. Goldbaum. I can't say that I did or I didn't.
The Chairman. I see. Well it is a strange thing that you would
be talking to him about it if you just simply did it as a courtesy or a
favor for a friend, or a stranger or somebody you had never seen,
and tlien it preyed on j'our mind afterwards, and I cannot understand
that.
Mr. Goldbaum. I do a million favors for people and it never preys
on my mind, and I have done it all of my life.
The Chair^ian. I have no doubt but, apparently, in this case it did
prey on your mind and you kept talking about it.
Mr. Goldbaum. There was nothing to prey on my mind about it.
Mr. Kennedy. Let me see if I can refresh your recollection a little
more. You know Mr. Lester Beckman ?
Mr. Goldbaum. I told you, "yes."
Mr. Kennedy. And you knew him up in McNeil Island?
Mr. Goldbaum. Yes, sir.
Mr. Kennedy. We have an affidavit here from Mr. Lester Beck-
man, signed the 13th day of February, before E. DeMatt, clerk of
the United States district court, by Thara Lund, deputy.
Could I read that in?
The Chairman. You may read it.
Senator Mundt will act as chairman for a few minutes.
Mr. Kennedy (reading) :
I, Lester T. Beckman, make this statement of my own free will without promise
of any favor or promise of immunity, in the presence of Jerome L. Adlerman
and Alphonse Calabrese, assistant counsel to the United States Senate committee
which is known to me to be investigating improper activities in labor or manage-
ment fields.
I, Lester T. Beckman, 827 S. W. L3th Avenue. Portland, Oreg.. while serving
a sentence for income-tax violation at the Federal reformatory at McNeil Island,
State of Washington, from approximately 1952 to August of 1954, met Hy Gold-
baum, of Los Angeles, Calif., and Las Vegas, Nev., and George Caprie, of Las
Vegas, Nev.
Upon my release I returned to my home in Portland. In February of 1955,
the exact date I do not recall, I made a business trip to Los Angeles, and upon
my retui-n to Portland drove through Las Vegas to attend the marriage of a
friend, Leo Ross. I stayed overnight at the Sahara. While in Las Vegas I
met George Caprie and Hy Goldbaum. Hy Goldbaum at this time asked me if
288 IMPROPER ACTIVITIES IN THE LABOR FIELD
I knew Stan Terry. I told him that I did. He then said he had done Terry
a big' favor with the teamsters' union. Goldbaum complained that Terry had
not kept his promise to pay him. Although Hy Goldbaum did not explain what
the nature of the favor was, I had knowledge, primarily through the newspapers,
that Terry was in trouble with the teamsters' union and that he wanted to get
straightened out. I do not recall any particular sum of money being mentioned
by Goldbaum, but from his statement that he had done Terry a big favor I
surmised that there was a big sum involved.
Goldbaum once told me that he had done Frank Brewster a big favor, the
details of which he never explained. I do not recall when this conversation took
place, and it may have been when we were in the penitentiary together.
In February of 1956 I made another business trip to Los Angeles and on my
way home to Portland drove through Palm Springs, Calif., and then on to Las
Vegas, Nev., where I stayed for 1 night. I cannot recall talking to Hy Goldbaum
at all on this trip or during 1956 at any time.
This statement, consisting of two pages, which has been read by me, is true
iind correct to the best of my knowledge.
(Signed) Lesteu T. Beckman.
Mr. Kennedy. Does that refresh your recollection ?
Mr. Goldbaum. Yes; it does. When Mr. Reckmaii was in Las
Vegas, he was betting on the horses and everything, and I said, "Do
you know Stan Terry?" and he said, "Yes." And I said "A^liat is
he doing?" and he said, "He is doing good." And I said, "A fine fel-
low: I did him a favor and he never said thank you or send me
anything."
Mr. Kennedy. He said he didn't keep his promise to pay you. Is
Mr. William Caprie a good friend of yours ?
jMr. Goldbaum. Yes, sir.
Mr. Kennedy. And Mr. Lester Beckman is a good friend of yours,
and both say that you said that Terry had promised to pay you.
Mr. Goldbaum. He had not promised because I never discussed it
with him.
Mr. Kennedy. Why would they say that; these good friends of
yours ?
Mr. Goldbaum. I don't know: I absolutely don't know; and I never
discussed 5 cents with Terry.
JMr. Kennedy. Both of these statements are sworn to, and they
have no reason to lie to the committee.
Mr. Goldbaum. I don't think that they meant to lie, but I have
never discussed it with him.
Mr. Kennedy. Wasn't the figure of $7,500 discussed?
Mr. Goldbaum. I might have said I did him a favor, and it is Avorth
$7,500, and I may have made that remark. As I told you. I pop off
a lot.
Mr. Kennedy. Did you not in fact mention $7,500 ?
Mr. Goldbaum. I might have said he couldn't have bouijht this
favor for $7,500. ^ ^ '
Mr. Kennedy. But you think you might now have discussed $7,500 ?
Mr. Goldbaum. If any $7,500 was ever mentioned, this was the
way I worded it: "He could not have bought this favor for $7,500."
I miglit have said $7,500, and I might have said $10,000.
Mr. Kennedy. Did von ever sav he could not have bouo-ht this
favor for $7,500?
Mr. Goldbaum. I could have made that remark.
Mr. Kennedy. '^Vhv? Was it that big a favor that you did for
Stan Terry?
Mr. GoLDBATTM. Well, I never knew until later I never did him
anything.
IMPROPER ACTIVITIES IX THE LABOR FIELD 289
Mr. Kennedy. Why were you discussing the big favor you did
liiin?
Mr. GoLDBAUM. I had thought he had kept the appointment with
Mr. Brewster and I found out that he never did.
Mr. Kennedy. So you thought you had done liim a big favor?
Mr, GoLDBAUM. At that time I thought I had done him a favor.
Mr. Kennedy. "V^^ien he got in the union ?
Mr. GoLDBALM. To my knowledge. I tliought that my talking to
.\[r. Brewster had made the appointment and he got in the union
through that way; if he got in.
Mr. Ivennedy. You know" that he got in the union and you have
been told that ?
Mr. GoLDBAUM. I heard it here and I have never asked anybody
since. Unions are nothing to me. I have never belonged to a union
in my life.
Mr. Kkxxkdy. Did you ever arrange for an^'body else in Portland
to <xet in touch with Frank Brewster?
Mr. GoLDBAUii. Yes.
Mr. Kennedy. ^Miat else did you do?
yh\ GoLDBAUM. "What do you mean, what else?
Mr. Kennedy. A^liat were the circumstances surrounding that ?
Mr. GoLDBAUM. You want the whole storv?
Mr. Kennedy. Go ahead.
Mr. Goldbaum. Mr. Lester Beckman called Las Vegas to Mr.
George Caprie and he said, "I believe Mr. Elkins is going to open a
night club and he had some union trouble. ISIaybe if you straighten
him out you mi^a'ht have a piece of it for free.''
It sounded good to me and I was willing to make a dollar for free.
I don't know whether Mr. Beckman called me or I called him and I
said, ''Les, what is it?" and he said, "Mr. Elkins has some trouble
with the union." And I said, "I don't know if I can get any more
favors from Frank or not."
So anyway he said, "Why don't you come up and look it over ?". So
I said, "Well, why not have Mr. Elkins down here to see me? I don't
want to come up there.'"
I don't know, I think Mr. Elkins called me or Mr. Beckman. Any-
way I made arrangements to go to Portland, and I said, "If I come
up there will they pay my expenses?" He said, "Yes." So I made
arrangements to go to Portland.
I thought before it was Mr. Beckman, but after thinking it over I
think Mr. Elkins met me and I described mj-self and he introduced
himsplf to me, and I said, "Could you get me a room V And he said,
"1 have a room for you at the New ITeatlnnan Hotel."
So we went U]) there and I said, "Wliat's your trouble?" He said,
"There is a local squabble here or something, you know." And I said,
"Well, I don't know Avhether I can get an appoiiitment with ]\Ir.
Brewster." And so he said, "Well, I will call you the next day," and
he gave me $200 for my expenses that night, and I remember that.
He gave me $200 and he said, "Here's your expense money for be-
ing up here." The next day I think Lester Beckman came to see me
and I said, "I don't know this Fred, Mr. Elkins." Les said, "He is a
nice fellow and he is the same as I am," and I said, "That's good
enough for me and you have always had a good reputation with me."
290 IMPROPER ACTIVITIES IN THE LABOR FIELD
The following afternoon, I believe, I called Mr. Brewster's office
in Seattle and he was in and so I said, "Frank, I'm in Portland. A
fellow is going to open a club here and I have a chance to get a piece
of it for free," and I said, "Can you see him and talk to him?"
He said, "Well, come up tomorrow." So at that time we went, and
I think that Mr. Elkins called me at the hotel and I told him the
appointment was for 11 tomorrow. So then we went to Seattle.
Mr. Kennedy. Did you go with him ?
Mr. GoLDBAUM. He sent a man at 6 : 30 in the morning and he took
me away out to his house to pick him up and he sent some other man,
a boy or something, that drove for him, I believe.
So he drove me up and we went to Seattle and we were late and
it was raining very hard and snowing and we had trouble. So we
got to Seattle and we went over to, I believe the Turf Club, and I
knew a fellow there and we had lunch.
I called Mr. Brewster and we made an appointment and I believe it
was for 1 : 30. We got to Mr. Brewster's office and we sat in the
outer office. It was the first time I had ever been there.
So we got inside and I introduced Mr. Elkins to him and before I
knew it they are in the damnedest squabble I ever heard in my life.
He accused him of doing such terrible things down in Portland. I was
so embarrassed I wanted to crawl mider the carpet and I didn't know
what it was all about. I was so embarrassed.
So anyway, I saw they were both getting hot and Mr. Brewster was
getting very mad and Mr. Elkins tried to ex{)lain his side of the
story which I knew nothing about and I wasn't interested in.
But I said to Mr. Elkins, "You had better step out a few minutes."
So he stepped out and I said to Frank, "I am sorry that I put you
in this predicament, and I didn't know anything about whether you
knew Elkins or ever saw him before in your life."
So I said, "I'm real sorry because I wouldn't have come under any
circumstances if I thought this was going to take place. I was just
trying to take a free ride."
Now, that is the whole story.
Mr. Kennedy. Did Elkins go back in ?
Mr. GoLDBAUM. No, sir.
Mr. Kennedy. That was the end of it ?
Mr. GoLDBAUM. Yes, Mr. Elkins and I came out to the airport and
I couldn't get a reservation. I believe he called somebody in Port-
land and got me a reservation and I went to Los Angeles and Elkins
went back to Portland.
Mr. Kennedy. Did you ever get any piece of a joint then in
Portland?
Mr. GoLDBAUM. I never got anything and I never talked to them
again.
Mr. Kennedy. That was the end of it ?
Mr. GoLDBAUM. I wanted to cool Mr. Elkins off and I said, "I don't
want any part of this proposition, or anything like this." I said,
"I don't know what it is, these arguments." And they started to tell
me about the local politics in Portland which I was not interested in
at all.
Mr. Kennedy. How come you were able to make these appoint-
ments with Frank Brewster and nobody else could.
IMPROPER ACTIVITIES IN THE LABOR FIELD 291
Mr. GoLDBAUM. Well, I'll tell you about Mr. Brewster. As I told
you, I met Mr. Brewster around 1940 and he came and I lived in the
Monticello Apartments. I never had been to dinner with him and
I never had a drink with him, but he owned horses and I was a handi-
capper of horses. He used to respect my opinion aromid the race-
track. Every time I went to the racetrack he was there and I sat
and talked to him about horses and different things in general.
He respected my opinion and I used to dig up tips and I was a
pretty good fellow to hustle around the racetrack and I used to go and
dig up tips. If I gave him a winner, I would be very happy, the same
as I would give it to you if I saw you at the race track.
That has been my whole trouble. I can't keep my big mouth shut
around the racetrack.
The Chair^vfax. Has your judgment been borne out or has it become
impaired ? I do not want any bad tips.
Mr. GoLDBAUM. I always did pretty good around the race track.
The Chairman. Proceed.
Are there any further questions?
Senator Muxdt. What did Brewster say to you after you saw him,
following the exodus of jNIr. Elkins?
Mr. GoLDBAUM. I never discussed it again with Mr. Brewster.
Senator Mitxdt. You told Brewster in the office you were sorry
you brought this fellow in?
Mr. GoLDBAUM. He said, "Do you know this fellow planted some
tape recordings or something in Portland''? And I said, "I never
knew anything about it." And that was what they were arguing
about and I said, "I am the most surprised man in the world."
Senator ]\[undt. They were arguing about the tape recordings ?
Mr. GoLDBAUM. Yes, sir.
Senator Mundt. Did you know he had those tape recordings?
]Mr. GoLDBAUM. Mr. Brewster said, to the best of my knowledge, "I
don't believe in these kind of things," and I made a remai-k. One
remai'k he made, he said, "I never got my job where I am today double-
crossing anybody."
Senator Muxdt. So you apologized to Mr. Brewster?
]Mr. GoLDBAUM. I apologized to Brewster for making this appoint-
ment.
Senator Mundt. What did he say to you then ? Did he accept the
apology ?
Mr. GoiJDBAUJr. He just said it was one of those things and it is
nothing particular and I said, "Well, I'll see you at the racetrack,"
and I walked out. I don't think I was there more than 3 or 4 minutes.
Senator Muxdt. Tliis big squabble that they were having was about
recordings that had been taken ?
Mr. GoLDBAUM. Something about recordings.
Senator Mundt. Did you hear Brewster say anything about any
cement boots ?
Mr. Goldbaum. Who? About what?
Senator Mundt. Cement shoes.
Mr. Goldbaum, No, sir.
Senator Mux^dt. Now, going back to the appointment that you set
up between Mr. Terry and Mr. Brewster, did j'ou do that by telephone
call to Mr. Brewster ?
292 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. GoLDBAUM. No, I ran into Mr. Brewster at the racetrack and it
was Santa Anita and that is why I tliink Mr. Terry was wrong; in his
assumption of the dates. Because I know it was during the racing of
Santa Anita and Santa Anita was in January, I think, that has been
my big argument.
Senator Mundt. You feel then it was in January that you ran into
Mr. Brewster?
Mr. GoLDBAUM. I ran into Mr. Brew^ster at the racetrack and I
told him.
Senator Mtjistdt. What did you tell him ?
Mr. GoLDBATJM. I told him, I said, "Listen, Bill Caprie has a mort-
gage and he is trying to sell it to, I understand Mr. Terry who is in
some trouble with the union." I said to him, "If you could do him
a favor, Frank, I would appreciate it."
Senator Mundt. "\'\'liy would you appreciate it?
Mr. GoixDBAUM. Because Mr. Gaprie has been my lifelong friend.
Senator Mundt. You were doing the favor for Terry.
Mr. GoLDBAUM. I was doing it for Caprie and I didn't do it for
Terry, and liow could I do a faA^or for Terry ? I was trying to help
Mr. Caprie sell his mortgage.
Senator Mundt. You are telling us then, that you set up the appoint-
ment in January.
Mr. G'oLDBAUM. To the best of my knowledge.
Senator Mundt. Two months before you ever met Mr. Terry.
Mr. GoLDBAUM. Yes.
Senator Mundt. Did you set up a specific appointment at tlie race-
track ?
Mr. GoLDBAUM. Mr. Brewster said he would be back in Seattle, I
believe, he said next week and he said, "Have Mr. Terry get in touch
with me." I didn't have Mr. Terry's number and I think that he
called me. I believe Mr. Ca])rie gave him my phone number.
Senator Mundt. What did you tell Terry in that conversation?
Mr. GoLDBAUM. I said, "I talked to Mr. Brewster at the racetrack
and he wdll give you a hearing."
Senator Mundt. Now, when you met Mr. Terry, through the in-
strumentality of Mr. Caprie, did you say to Mr. Teny, "You are the
man for whom I made the appointment" ?
Mr. GoLDBAUM. No, I was too busy worrying about betting on a
horse that day and we were just getting up.
Senator Mundt. Mr. Terry said you talked to him for 15 minutes.
Mr. GoLDBAuM. I don't believe so. I have to differ with him.
Senator Mundt. Was Mr. Caprie present during the conversation ?
Mr. GoLDBAUM. I asked Mr. George Caprie about it and he said,
"We w^eren't there 2 minutes because we were going up to the corner
to bet on a horse."
Senator Mundt. That did not answer the question. Was Mr. Caprie
present ?
Mr. GoLDBAUM. Mr. William Caprie was present and Mr. George
Caprie. We lived in this apartment. Mr. George Caprie and I share
this apartment there when I am in Las Vegas.
Senator Mundt. He is the brother of the other one?
Mr. GoLDBAUM. William Caprie,
Senator Mundt. How^ did George Caprie happen to take vou to
Terry ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 293
Mr. Goldbatjm. I can't hear you.
Senator Mundt. Why did George take you in and introduce you
instead of William? . .....t
Mr. GoLDBAUM. William introduced me and George had never met
him before either, he told me.
Senator Mundt. William took you and George both?
Mr. Goldbatjm. William brought him over there.
Senator Muxdt. William heard the whole conversation?
Mr. GoLDBAUM. To the best of my Imowledge, yes, sir.
Senator Mundt. You are now telling us that we can corroborate
what you are telling us either by Mr. Terry, who apparently does not
cooperate very well, or by either one of the Caprie brothers, both
of whom were in the rooni all of the time that you had this conver-
sation.
Mr. GoLi>BAUM. Yes, sir.
Senator Mundt. You are sure of that ?
Mr. GoLDBAUM. Positively.
Senator Mundt. You are sure we do not have to subpenu 'Siv. Caprie
and then have him say he wasn't in there ?
Mr. GoLDBArM. He will say we walked through there.
Senator Mundt. Both of them heard the full conversation ?
iSIr. GoLDBArM. I am quite sure it was. I came out of the bedroom,
it was a two-bedroom apartment.
Senator Mundt. This is your apartment?
Mr. GcLDBAUM. No, jMr. George Caprie lives there all of the time
and 1 share it with him when I am in Las A^egas.
Senator ]\ii-NDT. It is where you stay and it is Mr. George Caprie's
apartment (
Mr. GoLDBAuM. Yes, sir.
Senator Mundt. And Mr. William Caprie brought in Mr. Terry
and introduced both of you?
Mr. GoLDBAUM. Yes, sir.
Senator Mundt. And they both were there during the entire con-
versation (
]Mr. GoLDBAUM. Positively.
The Chaikman. Are there any further questions ?
All right, you may stand aside for the present.
]Mr. Terry, will you come back a moment ?
TESTIMONY OF STANLEY G. TERRY— Eesmned
The C'hairman. You have heard the statement of Hy Goldbaum,
and do vou want to make anv corrections in it {
Mr. Terry. I would like to make one clarification. T think maybe
Mr. Goldbaum and I in our testimoii}^ — he said that I thought that
I called him. but I am sure that I didn't call him. I think^that he
called me. But I think that we have both testified to the fact that
there M-as a telephone call and he had set up an appointment with
Afr. Brew'ter that I didn't keep.
The Chairman. We recognize that.
Mr. Terry. Then, I also want to clarify one other thing, too, that
I think this appointment that was set up' with Mr. Brewster was set
up witliout my ever knowing it due to the fact I talked to Shear about
these two points in the Flamingo Club and I think Mr, Caprie in an
294 IMPROPER ACTIVITIES IN THE LABOR FIELD
effort to try to square things away as far as the union was concerned
spoke to Mr. Goldbaum and Mr. Goldbaum did what I think he did
here.
But as far as I am concerned, I never kept an appointment with Mr.
Brewster and that is that.
The Chairman. That appointment was set up for you after you met
Goldbaum, was it not ? That is what 3''ou testified this morning. It
was 2 days after you got back. You could not say whether it was 1
day or a week after you got back that he called j^ou and said he had
made the appointment. That is what you testified to this morning.
Mr. Terry. Do you have that in the record this morning ?
The Chairman. Yes, sir, it is in the record.
Mr. Terry. Then, let me sav this for the record, as far as wliat I
said this morning, it is this: I went to Las Vegas to see about two
points of the Flamingo Club.
The Chairman. I understand; you said that this morning, and I
asked you this question. You also said that you got the appointment
after you saw Mr. Hy Goldbaum, that lie called you afterward and
told you about it.
I asked you w^hether it was the next day or when, and you said you
did not know whether it was 1 day or a week afterward.
Mr, Terry. All right, then
The Chairman. Now, then, do you say it was before, he called you
before you ever met him and told you he had an appointment for you
or was it afterward, after you met him ?
Mr. Terry. Mr. Chairman, I tried to straighten that out when I
gave you the testimony before. I asked Mr. Kennedy about the date
I was in Las Vegas.
The Chairman. I do not care whether it was January or December.
That is not the point. The point is, was it after you had met him
that he called you and told you that he had made the apx^ointment for
you ? It does not matter what the date is,
Mr. Terry, No, sir.
The Chairman. You said this morning that it was,
Mr. Terry. If I said it this morning, I said I was not sure.
The Chairman. No, I asked you if it was the next day and you said
you did not know whether it was the next day or a week afterward,
Mr. Terry. Yes, sir, but I said this morning I wasn't sure of the
dates.
The Chairman. I do not care what the date was. It does not matter
whether it is December or January or June. The question is, was it
after you met him that you got the appointment and did he call you
and tell you he had the appointment for you ?
Mr. Terry. Mi-. Chaii-man. let me say this to you, that as far as I
am concerned my meeting with Goldlxium and what he did for me,
didn't matter. Goldbaum was a friend of Brewster as far as Mr.
Shear told me, and what Mr. Shear or Mr, Caprie and the rest of
them, whether this was called to Goldbaum — when I met him, as I
testified before, there was nothing. It was just a meeting.
The Chairman. There was enough so that he placed a long distance
call for you at some time to call you up and tell you that he had gotten
an appointment for you with Mr. Brewster and it amounted to that
much to him.
IMPROPER ACTIVITIES IN THE LABOR FIELD 295
Mr. Terry. That's right.
The. Chairman. And you are a stranger to him and you had never
met him but one time.
Mr. Terry. That's right.
The Chairman. Now, maybe you had not met him. He said he
had not even met you and I want to know whether lie had met you or
whetlier he called you after you had met him or before. I knew what
you said this morning.
Mr. Terry. What is the question, now, please ?
Senator Mundt. Here is a question he can answer. At the time
Goldbaum telephoned you — he said he telephoned you and not that
vou telephoned him.
Ml-. Terry. That's right.
Senator Mundt. At the time he telephoned you, had you met him
before that phone call ?
Mr. Terry. No.
Senator IMundt. You had not met him. You are telling us you got
a phone call from a stranger by the name of Goldbaum, saying he has
an appointment with Brewster and that you had not met Brewster
at that time. That is what you want us to believe ?
Mr. Terry. That is the part I am confused about.
Senator Mundt. Now, you can get confused about this. When you
got the phone call from Goldbaum, you know whether you had ever
met him or not and we want to know,
Mr. Terry. Let me put it this way
Senator Mundt. Just answer that question.
Mr. Terry. I will answer the question.
Senator Mundt. At the time you got the call from Mr. Goldbaum,
had you met the man who phoned yon or had you not met him. That
is what we want to know. Forget all the calendar dates or anything
else. You have told us that you got a phone call from Goldbaum
and you know whether you had met him before that phone call or not.
Mr. Terry. In order to put it in a few words
Senator MuNm\ Just tell us in one word. You met him before you
got the phone call or not, yes or no, and then you can make your ex-
planation.
Mr. Terry. I am not sure.
Senator Mundt. It will make a lot of difference. If a man calls
you up that you haven't met, the whole tone of your telephone call will
be different. So you do know him or if you get a telephone call from
somebody you have not met, you are going to have to find something
out about him. And if you have met him, that is a different set of
circumstances.
You would know whether you had met him or not when he called
you,
Mr, Terry. I have to say I am not sure whether he telephoned be-
fore I met him or after I met him.
Senator Mundt. You do not want to tell the committee, in other
words.
Mr. Terry. Yes, I want to tell the committee.
Senator McCarthy. Mr. Terry, I am personally not impressed by
this at all. You certainly knew whether you had met this man or not
before he phoned you or whether he was"^ a complete stranger. You
296 IMPROPER ACTIVITIES IN THE LABOR FIELD
cannot expect any average individual to believe that you do not know
now whether 3'on got a call from a complete stranger or someone you
knew.
Mr. Terry. Senator, sir, if you will give me 2 minutes, I can say
why I can say I am not sure.
Senator McCarthy. You can make it three.
Mr. Terry. Thank you, sir.
Senator McCarthy. I might say I will be glad to give you the 2
minutes or 3 minutes and I am sure the Chair will, but you must
know whether you got a call from a complete stranger or whether it
was someone that you knew.
Mr. Terry. Yes, sir, I can explain that, sir.
Senator McCarthy. All right.
Mr. Terry. Mr. Shear had talked to me about Mr. Goldbaum and
when Mr. Shear called me it was previous to the time I went down
to Las Vegas and because of the conversation I had with Mr. Shear,
Mr. Goldbaum could call me and say, "This is Mr. Goldbaum, Ily
Goldbaum, that Mr. Shear talked about and I have set up an appoint-
ment for you with Mr. Brewster."
Now, that could be before I met Mr. Goldbaum or it could be after
I met Mr. Goldbaum, but I would say that I am almost sure it was
before I met Mr. Goldbaum. But to say unequivocably that it was,
I can't.
But I will say that this is the best of my recollection the telephone
call that Mr. Goldbaum gave me was before I met him.
Senator Mundt. Now, you are changing your whole story from
this morning, Mr. Terry. You told us this morning that it was not
this respectable banker, Mr. Shear, of Portland, who put you in
touch with the notorious gambler by the name of Goldbaum, but that
Mr. Shear, of Portland, put you in touch with a fellow by the name
of Caprie who put you in touch with Goldbaum.
You have got to have one story and stick to it.
Mr. Terry. Mr. Chairman, I don't have a story to stick to. I am
only trying to tell you the truth.
The Chairman. Then your truth ought to be more consistent than
that.
]Mr. Terry. I tried to make it clear this morning that Mr. Shear
called me up about two points of the Flamingo Club previously.
The Chairman. We know all about that, and he told you about
Goldbaum.
Mr. Terry. Yes, sir.
The Chairman. And he told you that he had a friend by the name
of Caprie in Las Vegas who was a friend of Goldbaum who could put
you in touch w4th Goldbaum. And Goldbaum could put you in touch
with Brewster and we know all of that and my memory is good on
that.
Mr. Terry. That's right.
The Chairman. We want you to straighten this out. You tell us
now^ that Mr. Shear got in touch with Mr. Goldbaum, and that Mr.
Goldbaum then called you and told you he had an appointment witli
Mr. Brewster, which refutes everything you said this morning about
your going down to talk to Mr. (/aprie and that Mr. Caprie, through
Mr. Goldbaum, made the appointment with Brewster.
IMPROPER ACTIVITIES IN THE LABOR FIELD 297
Mr. Terky. What Sliear, what Caprie, and what Goldbaum did,
I don't know. But as far as 1 am concerned with Shear, Shear said
he knew Goklbauni, and that he would talk to Caprie about Gold-
baum, about what-you-may-call-it, about Mr. Brewster.
Senator JMindt.' Mr. Shear told the committee's investigator he
did not even know Mr. Goldbaum.
Mr. Terry. Mr. Shear told the investigator he didn't know Mr.
Goldbaum? Then I say this to you, sir, and I will say again, that I
am under oath in this committee chamber, and Mr. Shear could not
say that. Mr. Shear told me that.
Senator Mindt. Pie told you he knew Mr. Goldbaum ; is that right?
Mr. Terry. Well, sir, yes ; he told me that.
Senator Muxdt. He told you that, told you that he knew Mr. Gold-
baum? Mr. Shear told you he knew Mr. Goldbaum? Is that what
you are now telling us ?
Mr. Terry. I am telling you. I just told you that this morning,
that Mr. Shear said he met a Mr. Goldbaum down there who knew
Mr. Brewster.
Senator Mfndt. That is still a mystery.
Let me ask you this question : Did you get your telephone call from
Mr. Goldbaum before or after you met Mr. Caprie?
Mr. Terry. That I am not even sure of, either.
Senator Mundt. You do not know that one?
Mr. TEiuiY. Let me put it this way : If I got the telephone call from
Mr. Goldbaum, then it was the same time that Mr. Caprie, because
I met Mr. Caprie and Mr. Goldbaum the same time, whatever time
that was. Whether the telephone call fits in previously, I don't know.
But I Avould say this, as I think about it: I got the telephone call
before I saw Mr. Goldbaum and before I saw Mr. Caprie.
Senator Mundt. Did you get the telephone call in January, as Mr.
Goldbaum says you did?
Mr. Terry. I would assume it was in January, or sometime previ-
ous, previous to the time I was in Las Vegas. In other words, as far
as this trip with Mr. Goldbaum and Mr. Shear, I went to Las Vegas
on the two points, and to try to reconstruct the telephone call with
Brewster — I mean with Goldbaum
Senator Mundt. Let me reconstruct your story of this morning,
your recital of the facts as you gave them to us this morning. You
said you had two reasons for going to Las Vegas. One had to do
with the two points and the Flamin.go Casino. The other one was
that you said if you liad a chance to meet Mr. Goldbaum down there,
that would be all right, too, that you had that in mind and you might
get a chance to see him, because you would like to meet him on account
of what Mr. Shear told you.
We will find that in the record of what you said this morning.
What conceivable reason would you have for wanting to meet Mr.
Goldbaum in Las Vegas 2 months after he set up an appointment with
Mr. Brewster, which you declined to keep ?
Mr. Terry. What reason ?
Senator Mundt. Yes. Were you going to pay him off ?
Mr. Terry. If he had made a telephone call to me previously that
he had set up an appointment with Mr. Brewster, maybe that was it,
or to tell Mr. Goldbaum that as far as I was concerned, there was no
particular dealing with the union, or trouble with the union.
298 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McCarthy. Mr. Terry, I am rather curious about some
aspects of this situation. No. 1, you knew Elkins right well; did
you not ?
Mr. Terry. As far as Elkins is concerned, I am in this position
with Elkins. Elkins has been in Portland a long time, and as far as
Mr. Elkins
Senator McCarthy. Have you known Elkins rather well?
Mr. Terry. No, sir.
Senator McCarthy. How well have you known him ?
Mr. Terry. How well have I known him? I have known him well
enough to do business with, pass the time away with, talk to him, knew
who he w^as, knew what his reputation was. I guess you would say,
"Yes; I knew him pretty well.'-
Senator McCarthy. Thank you.
By doing business, the only type of business Elkins was in was
head of the underworld syndicate; right? So when you were doing
business, you were doing business that had something to do with the
underworld ?
Mr. Terry. Well, I would say this. Senator
Senator McCarthy. I wonder if the photographer could move his
head a little bit so I can see the witness.
Mr. Terry. Maybe we can dispense with the photographers a little
bit.
I would say this, j\Ir. Senator: Though I knew Elkins and was
friendly with him, and knew about his business, whatever business Mr.
Elkins was in, and whatever business I was in, I wanted to keep them
as far apart as possible.
Senator McCarthy. You said you did business w^ith him.
Mr. Terry. Yes ; I did.
Senator McCarthy. The only business he was in was head of the
underworld in Portland. So when vou did business with him, it had
to do with that?
Mr. Terry. No, sir. The business I did with him, I leased a pinball
route from him with an option to buy it.
Senator McCarthy. Am I correct in this, that there was a great
amount of animosity between Elkins and the Brewster elements in the
teamster union ?
Mr. Terry. I thought as far as I was concerned — Elkins was one of
the first fellows in the teamsters union. I thought they were getting
along swell.
Senator McCarthy. Elkins was not in the teamsters union : was he ?
Mr. Terry. That I don't know, sir.
Senator McCarthy. Did you ever ask?
Mr. Terry. Mr. Senator, Mr. Sweeney came to me and tried to get
me into tlie union. One of the things he told me about was that if I
would join the union that I could put my pinball machines in the labor
temple.
Senator McCarthy. Try and stick to the question.
Mr. Terry. All right.
Senator McCarthy. See if I am correct in this : Elkins may have
joined the teamsters when he wanted to get the label for his pinball
machines. Before that he had no connection with the teamsters.
Mr. Terry. I don't know when he joined the teamsters union, but I
assume that he joined the teamsters union when he put his machines
in the labor temple.
IMPROPER ACTWITIES IN THE LABOR FIELD 299
Senator McCarthy. The labor temple had iiiany more elements than
the teamsters ; right ?
Mr. Tekry. Yes.
Senator McCarthy. Just tell ns the truth in this. "Was there or was
there not animosity between Elkins and the Brewster elements?
Mr. Terry. Well, sir, to the best of my knowledge, I don't know.
Senator McCarthy. Yon do not know?
Mr. Terry. Xo, sir.
Senator McCarthy. You have no Icnowledge whatsoever?
Mr. Terry. I have no knoAvledge whatsoever until I read the news-
papers that there was.
Senator McCarthy. I am rather curious. Elkins has come here and
has testified against Brewster — and I hold no brief for Brewster, I
know nothing about him except what I have heard here — and Elkins
certainly has gon.' all out to cut his throat. I just wonder what the
])icture was back there. Was there animosity between the two of
thejn ? Is tliere some reason for this ?
Mr. Terry. Mr, Senator, could I have five minutes to explain what
I know about the whole thing ? If you will indulge with me, when the
teamsters union came around
Senator McCarthy, xis many minutes as you want, I would say.
Mr. Terry. Thank you, sir.
"WTien ]Mr. Sweeney came to my office in 1953 and wanted to organ-
ize my employees and the other men in the coin machine business, he
gave many reasons for it. One of the reasons that later on he pro-
posed to not only me but to several members of the Coin Machine Men
of Oregon was this, that if you would join the teamsters union you
could put your machines into the labor temple.
The labor temple happened to be a very good location, from the
standpoint there was a lot of men there, from the standpoint you oould
make good returns u])on your machines being in there, it had a repu-
tation in the past, before they took the machines out, of making a lot
of money. It was a piece of bait that they gave everyone.
Myself and several other competitors in the city of Portland said
this: As far as joining the teamsters union or any union, it is a differ-
ent issue. As far as putting the machines in the labor temple, it is
an issue. We Avill go before the committee
Senator McCarthy, I do not want to cut your 5 minutes short.
Mr, Terry. I will just take 3 minutes, or just this time.
So a number of the competitors, including myself, went before the
committee, and one of the requisites there was that you had to join
the union.
So then the company that got to put the machines in the labor
temple was the Service Machine Co., and so I assume they joined the
union at that time.
Senator McCarthy, Actually, and I am trying to evaluate the
testimony of Elkins and what Brewster will testify to when he comes,
was Elkins not denied the union label, and that label given to someone
else?
Mr. Terry. Well, sir
Senator McCarthy. And was there not great animosity between
the two groups ?
89330— 57— pt. 1 20
300 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. jSTo, sir. As far as I am concerned, Service Machine Co.,
whether it is Mr. Elkins himself or his employees or anything, was
one of the first people who ever got into the nnion.
Senator McCarthy. You mentioned Las Vegas. There is a man
ont there by the name of Greenscum or Greenspun who has quite a
record, a criminal record, under indictment at the present time, who
was denied a license to practice law, until Marcantonio, who was a
name in the Communist Party, took him under his wing. He was
given a license then. Tell us what the tie-up is between Greenscum
and Elkins or BreAvster.
Mr, Terry. Sir, I don't know. I don't know Greenspun from a bale
of hay.
Senator McCarthy. You mean you were in Las Vegas doing busi-
ness with the gambling elements and did not know Greenscum ?
Mr. Terry. I never did any business in Las Vegas.
Senator McCarthy. Your sworn testimony is you do not know him ?
Mr. Terry. Yes, sir.
Senator McCarthy. As far as you know, he has taken no part in this
fight between Brewster and Elkins ?
Mr. Terry. I don't know anything about him or anything until you
mentioned his name. I don't even know — I never heard of such a
fellow.
Senator McCarthy. Take a bit of time on this, will you ?
Is it your testimony that as of this moment you know nothing what-
soever about any part that Greenspun has taken in the fight between
Elkins and Brewster?
Mr. Terry. I will take all the time that I can. I want to assure you
of this, that I am here under oath. Mr. Greenspun means nothing to
me. I never heard of him. I don't know anything about him.
Senator McCarthy. I did not ask you that question, what he means
to you.
Mr. Terry. Well, I don't know him, then.
Senator McCarthy. Do you mean to say that you have been work-
ing on the west coast and you are not aware of the fact that there was
a fight between this man Greenspun and Brewster ?
Mr. Terry. Mr. Senator, I just answered that.
Senator McCarthy. The reason I am asking that is that I want
to evaluate the testimony of Elkins and Brewster and you and the
rest of those who appear.
Mr. Terry. Yes, sir.
Senator McCarthy. The information that I have is that there was a
very well known fight between the teamsters and this man who calls
liimself Greenspun.
Do you mean you know nothing about that ?
Mr. Terry. I know nothing about that whatsoever.
Senator McCarthy. ^Vliat business did you have in Las Vegas?
Mr. Terry. I wish Mr. Kennedy wouldn't laugh.
Senator McCarthy. Pardon?
iSIr. Terry. I wish Mr. Kennedy wouldn't laugh, because I spent
almost an hour telling them about my business I had out there.
Senator McCarthy. This is rather important, and we can spend
another hour.
Mr. Terry. Yes, sir.
Senator McCarthy. I am curious about this.
T3MPR0PER ACTIVITIES IN THE LABOR FIELD 301
Mr. Terry. Senator, as I said this morning-, and I will not be able to
say it word for word, but my business in Las Vegas, and the only busi-
ness that I ever had in Las Vegas, and the only time, as far as Las
Vegas is concerned, that I have ever been there, except for maybe put-
ring my money in the slot maeliine, \vas the time tliat Mr. Shear called
me sometime in 1954, and told me that there were 2 points of the Fla-
mingo Hotel for sale, and that I could buy that 2 points of Flamingo
Hotel, which has a value, we will say, roughly of $120,000, and he
thought I could buy it for maybe $80,000. I told him that I w^as not
interested in any business in Las Vegas. As far as I was concerned,
1 was near to the point of going out of business, as far as the coin ma-
chines and pinballs were concerned, and I didn't want to have any
part as far as Las Vegas is concerned.
Senator McCarthy. Who else would have been the coowners of the
Flamingo?
^h\ Terry. The coowners of the Flamingo I don't loiow. Every-
thing, as I understand it in the Flamingo, is bought on a cooperative
deal, they have 2 points of this, 5 points of that. But Mr. Caprie had
2 points of the Flamingo Club, which had sold — in other words, the
owners, as he was, along with some other owners, had sold the Fla-
mingo Club.
Caprie had two points. Caprie wanted to sell these 2 points which
had a mortgage that would pay out $120,000. The only thing bad
about it was that you had to wait 5 years, we will say, to get your
$120,000. Mr. Caprie did not want to wait 5 years. He wanted to
convert his $120,000 mortgage into some money so he could go over to
the Dunes and thereby purchase some points in the Dunes, because the
])oints in the Dunes had this feature that tlie points in the Flamingo
did not have ; the points in the Dunes could make him money.
Senator McCarthy. All right. I just have one more question.
May I say, Mr. Chairman, that I am very much concerned about this
because of the reports I have received, the reports that this is a fight
between the Brewster element and some other element. I do not have
any idea as to whether Brewster is honest or a crook or what he is;
I have never met him ; I have never had any contact with him.
I am just dubious to know, Mr. Terry, how you could be out on the
west coast involved with Elkins and others
Mr. Terry. With the
Senator McCarthy. Let me finish. And then you tell us that you
do not know wliether or not there was a personal feud between these
two elements. If there was such a feud, it will place a different light
upon this testimony.
Mr. Terry. Senator, sir, I did not know of any feud between Elkins
and any members of the teamsters' union until Mr. Elkins called me one
day and said he wanted to see me. So Mr. Elkins called me and said
he wanted to see me.
So he came down — I don't know whether he asked me to come to his
office or someplace ; anyway, I saw him somewhere^ — and he said to me,
"How did you get straightened around with the teamsters nnif)n("'
I said, "I got straightened around with the teamsters union because
■')5 or 40 of us fellows, after we put them on notice that w-e were ready
and willing to join the teamsters' union and we tried to get a contract
that we wanted and couldn't get it, we finalh^ had a meeting on March
302 IMPROPER ACTIVITIES IN THE LABOR FIELD
10, and we all signed a petition that said this, 'we, the undersigned, are
ready and willing to join the teamsters union.' We took the thing
over to the teamsters building, as a committee, and gave it to them.
That is how I got into the teamsters union.''' 1 explained that to Mr.
Elkins.
Senator McCarthy. You still have not answered my question.
Mr. Terry. Tlien I will answer it.
Senator McC \ktiiy. May I say I have the utmost respect for our
chief counsel. I am sure he has gone into this in detail. But I per-
sonally would like to know from you, and I am sure you know — I am
sure you know tlie answer^ — whether or not there is a personal feud
between the Brewster elements and the Elkins elements, because we
must have the answer to that to evaluate the testimony.
Mr. Terry. Mr. Senator, if that is important to you, if you will
give me 3 minutes, then I think I will answer your question for you.
Senator McCarthy. Good.
Mr. Terry. So then Mr. Elkins asked me how I settled my difference
with the union, and I told him how I settled the difference with the
union.
Then he said to me, ''Well, I am having a tough time with tliem.**
I said, "You are having a tough time wdth them? I thought you
belonged to them."'
He said, "Sure I belong to them, but what they want to do, they
want to take part of mv"' — I think he used the word "gaffs" or some-
thing, and I said. "Weil. I just can't believe it."
He said, "Well, it is true." He said, "They want to take half of
my gaffs in town, and they want me to do this, and do that, and I
am not going to go for it."
I said, "Mr. Elkins, I don't believe that is true." I said, "As far
as I am concerned, I think tliat if Mr. Brewster, Mr. Beck, or those
people knew that somebody here was trying to put some pressure on
you to talk half of this kind of business, I don't think it is true, because
I feel this way, tliat Mr. Brewster and Mr. Beck wouldn't stoop to
that kind of thing."
He said, "I am telling you they are."
So we talked some more, and I said to Mr. Elkins, "I know a
fellow, I heard of a fellow, by the name of Goldbaum, who is a good
friend of Lester Beckman, and as far as Goldbaum is concerned he
has never done anything for me, but I understand that Lester Beck-
man and Goldljaum were, shall we say, in the service of their country
together, or a prisoner, whatever it is."
Senator McCarthy. Can I get back to the quCvStion now ?
Mr. Terry. Just let me go on for a minute, Senator.
Senator McCarthy. I am sorry. I thought 3'ou finished.
Mr. Terry. No ; let me go on.
I said, "He should know this Goldbaum pretty well."
I didn't know him and I didn't know how well Mr. Shear knew
him.
I said. Why don't you call Les, because I have been told that Mr.
Goldbaum can see Mr. Brewster, and go up and see Mr. Brewster.
I don't think Mr. Brewster would go for this kind of thing."
And so Elkins said, "All right, I will do it."
Senator McCarthy. Go for what kind of thing ?
IMPROPER ACTIVITIES EST THE LABOR FIELD 303
Mr. Terry. Well, the teamsters" union wantinjff to put their hands
in half of Mr. Elkins graft or whatever he was doing;. I don't know
what he was doing.
Senator McCarthy. In other words, you did not think Brewster
would go for infiltration of the teamsters by the hoodlum elements ; is
that it?
Mr. Terry. Well, as far as I am concerned, I don't know anything
about Brewster or wdiat he stands for or the men.
Senator McCarthy. You just said you did not think Mr. Brewster
would go for this sort of thing.
Mr. Terry. Yes, because he is the head
Senator McCarthy. By "thing," what do you mean? Do you
mean tlie infiltration of the teamstei-s by the hoodlum elements ?
Mr, Terry, No, I mean this, that I did not believe, and I still do not
believe, that Mr. Beck or Mr. Brewster, the head of the teamsters
union, wfudd have any truck with a fellow like Elkins to try to get
into the rackets of Portland, because there were hardly any rackets
of Portland going, that I know of, except what Mr. Elkins had.
Senator McCarthy. Let me ask you one final question. Do you
not know, as a matter of fact, Mr. Terry, tliat Greenspun and Elkins —
])ardon me, Greenspun and Elkins were trying to get the hoodlum
elements into position of power in the union, the teamsters union?
1 believe IVIr, Brewster controls roughly 11 WesteiTi States. Do you
not know that they were tiying to do that, and that Mr. Brewster
^\■as opposing it, and that that is w^here the fight has originated ?
Am I right or wrong on that? If I am wrong, I would like to
know it.
Mr. Terry. Senator, as far as I am concerned, I don't know any-
thing about Mr. Greenspun, j\Ir, Brewster, or Mr. Elkins, I know
nothing about that.
Senator McCart-hy, I do not want to prolong this thing indefinite-
ly, Mr. Chairman.
You said that vou w-ere doing business with Mr. Elkins. Now vou
say you knoAv nothing about him. If you were doing business, you
>\ere doing business in underworld racketeering businesses, is that not
right?
Mr. Terry. Well, Senator, could I read back the transcript? I
didn't say — I said I didn't know anything about Mr, Brewster, Mr.
Greenspun. or Mr. Elkins.
Senator McCarthy. Did you ever do any business with Mr. El-
kins?
Mr. Terry. Yes, sir, with ]Mr. Elkins. I bought a pinball route
from liim.
Senator McCarthy, And beyond that, did you have any business
with him?
Mr. Terry. Well, beyond that, it would be, outside of discussion,
niiiybe, political arrangements or whatever it happened to be, but as
far as he is concerned, Mr. Elkins
Senator McCarthy, Let us stop there. Political arrangements?
What?
Mr. Terry. Mr. Elkins and I lived in the same town together and
I would see him maybe five times a year.
Senator McCarthy. You said you discussed political arangements.
It so happens the district attorney has been indicted in Portland. I
304 IMPROPER ACTIVITIES IN THE LABOR FIELD
jnst wonder, in view of that, what political arrangements you dis-
cussed.
Mr. Terry. If I met him, I would see Mr. Elkins or he would call
me and tell me he is supporting somebody, or whatever it happened
to be, and that is all I Imow aliout him.
Senator McCarthy. Did not you and Elkins actually have an
agreement that you would support people for public office who would
condone the use of illegal devices, such as pinball machines, punch-
boards, on down the line ? Is that not actually the picture ?
Mr. Terry. Mr. Chairman, as I sit here
Senator McCarthy. Thanks for the promotion.
Mr. Terry. I would say this in the face of God, I have no sudi
arrangements, no such understandings, or the slightest arrangements,
or even think about such a thing with Mr. Elkins.
Senator McCarthy. ^^Hiat were the political conversations or agree-
ments that you made with Mv. Elkins ?
Mr. Terry. Outside of the fact of just maybe talking to him and
seeing what he was going to do as far as politically, or whatever it
was, because he was supposed to be a big man in town, contributing
to campaigns, and did this and did that. All I wanted to do was —
if I did, I don't even think I did that.
Senator ^McCarthy. Even did what ?
Mr. Terry. Nothing. Just talk to him.
Senator JMcCarthy. Did you go along in support of any of the
candidates that Elkins was supporting ?
Mr. Terry. I don't know what candidates, when you speak about
candidates, what specific candidates you are talking about.
Senator McCarthy. I am not speaking of any specific candidates.
You and I both know that with the vice king, and that is his title,
that it is important to him to have the right officials elected.
I ask you the very simple question, Did you go along with him in
any of those elections?
i\tr. Terry. No, sir.
Senator McCarthy. Under no circumstances?
Mr. Terry. Under ]io circumstances, except these, that if he hap-
pened to be — well, let's put it this way. In John McCourt's cam-
paign, he claimed that he helped John McCourt. As far as I am
concerned, I don't know wliether he did. But as far as John Mc-
Court, who is district attorney, he happened to be a friend of mine.
I supported John McCourt.
Senator McCarthy. You supported the district attorney that the
head of the vice syndicate was supporting. Now about members
of the city council ? Did you support any of those that Elkins was
supporting ?
Mr. Terry. I don't know who Elkins was sup]:)orting, but as far
as members of the city council
Senator jSIcCarthy. How about the prei^ident of the city council i
Mr. Terry. The mayor of the city council ?
Senator McCarthy. The mayor. I Leiieve thai is the title.
Mr. Terry. They call him a mayor, sir.
Senator ^McCarthy. All right: call him the mayor or the president.
Did you support the same man that Elkins was supporting?
Mr. Terry. I don't know whether he supported him. But I cer-
tainly supported him.
IMPROPER ACTIVITIES IN THE LABOR FIELD 305
Senator McCarthy. You did not discuss that with Elkins?
Mr. Terry. No, sir.
Senator McCarthy. Then just as one final question: You know —
Senator Mundt says that isthetliird final question.
As the third final question, did you, before you heard the testimonj'
of Elkins, know of any contacts between tliose who were trying to
infiltrate the teamsters with the hoodlum element, and those who
opposed ?
Mr. Terry. I know of one incidence, I don't know whether you call
it hoodlum elements or not, but as far as I am concerned, when John
McCourt ran against Mr. Langley, I was 100 percent in support of
Mr. ISIcCourt.
Senator McCarthy. No further questions, Mr. Chairman.
The Chairman. You were given your discharge from the union on
the 30tli of November 1954 I Tliat is when your card expired : is that
correct? It was mailed to you with a letter of November 22, 1954?
Mr. Terry. Should I keep those dates? I wondered if you were
going to ask me questions.
The Chairman. You got back into the union on the 11th of April;-
is that correct ?
Mr. Terry. I am not sure about the date when I got back into the
union.
The Chairman. I think that is what the record shows. That is the
a])proximate date?
Mr. Terry. Well, the approximate date ; yes, sir.
The Chair3ian. If you had not gotten back in March, you did get
back in then ?
Mr. Terry. Well, for all ])ractical purposes, as far as I am con-
cerned, sir, when the 25 or 30 fellows including myself signed this
affidavit that we were ready and willing to join the teamsters union,
and for whatever terms they wanted to make, bring the ternis over —
we are ready to join the teamsters union — from that time on I felt I
was as good as in the teamsters union. When the physical part of
going into the teamsters union happened, it could have been the latter
part of IVIarch, the first of April, or whatever time it happens to be..
The Chairman. What is the date of that petition, you signed i'
Mr. Terry. The date of that petition is around ^larch 10.
The Chairman. Around March 10 ?
Mr. Terry. Yes, sir.
The Ch.mrman. So it may have been March 10 ?
Mr. Terry. Well, a few days, one way or the other, sir.
The Chairman. All during that time you vv'ere out of the union?
Mr. Terry. All during that time I was out of the union.
The Chairman. And v.hen you got back in, did 3011 get back in
the time you went up to Seattle to see Mr. Brewster ?
Mr. Terry'. No, sir.
The CiiAHnrAN. Were you already back in ?
]\rr. Terry. I didn't say — pardon me ?
The Chairman. Were you already back in when you went up there ?.
Mr. Terry. When I went up to see Mr. Brewster ?
Tlie Chairman. Yes.
Mr, Terry. I never did see Mr, Brewster.
The Chairman. Did you go to his office ?
306 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Terry. Yes, I went to his office.
The Chairmax. What is the date of that ?
Mr. Terry. I don't know.
The C'liAiRMAX. About when ?
Mr. Terry. I would say that would be sometime in February.
The Chairman. You were not back in at the time you made that
visit 'I
Mr. Terry. No, sir.
The Chairman. So you did go up to his office ?
Mr. Terry. Yes, sir, I was in his office.
The Chairman. You say you did not see him ?
Mr. Terry. No, sir.
The Chairman. Who did you see ?
Mr. Terry. John Sweeney.
Tlie Chairman. You talked to John Sweeney ?
]Mr. Terry. Yes, sir.
The Chairman. John Sweeney was there ?
Mr. Terry. Yes, sir.
The Chairman. He is the man who had been keeping you out of
the union ?
Mr. Terry. He was the head man and I wasn't in the union.
The CHAiR]\rAN. He is the man who kept you out ? He is the one
you tried to talk to ?
Mr. Terry. I would say yes, he is the man that kept me out.
The Chairman. All right. So it was after that trip that you got
into the union ?
Mr. Terry, Yes: it was after the trip whon T sioned the petition.
The Chairman. Did you tell anyone after you got back from that
trip or have you told anyone subsequent to that time how nnich you
had to ]iay to get back into the union ?
Mr. Terry, I never told anybody
The Chairman. I am asking. Have you told anybody how much
you had to pay?
Mr. Terry. No.
The Chairman. This is the last question, and be certain about tlie
answer. Did you tell anyone that you had to pay $10,000 or a large
sum of money after you made that trip up there ?
ls\x. Terry. No, sir.
Tlie Chairman. You are positive about that?
Mr. Terry. Yes, sir; because it is not true. I didn't.
The Chairman. So you got back in without paying anything, ac-
cording to your testimony?
Mr. Terry. Yes, sir.
The Chairman. Then if you made these statements, were you tell-
ing the truth when you made them ? If you made such statements to
others, that it did cost you to get back in, and that you had to pay
money, ^10,000, or a larr^e sum of money, were you telling the truth
when you made those statements?
Mr. Terry. No, sir. I would be lying, because I didn't do it.
The Chairman. You would be lying.
Did you go around lying about it ? Well, you know.
]\Ir. Terry. No, sir. It seems kind of silly.
The Chairman. You are positive you made no such statements ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 307
Mr. Terry. I am positive.
The Chairman. Yon are positive about it.
Are there any further questions ?
Senator ]\IcCarthy. I have another final question.
At the time you signed the petition to get back in the union, what
was your occupation 'i
Mr. Terry. I was a pinball operator, sir, amusement game operator,
for a bit of a promotion.
Senator McCarthy. Do you know of any reason why a pinball oper-
ator would be eligible to join the teamsters union?
Mr. Terry. That was one question I asked Mr. Sweeney, why woidd
he want the pinball operators, as such, including my employees, who
are electricians, in a sense of the word they are electricians, why I
should join the teamsters union.
lie said, ''We have jurisdiction.'' I asked, "Why do you have juris-
diction?'' And he answered, and it seemed kind of funny to me for
an answer, he said, ''Because you drive from one location to the other.'"
Senator McCarthy. Did you ever pay Sw^eeney one penny to l^elp
you get back in the union ?
Mr. Terry. Mr. Senator, I wdll say this, that as far as paying him
one penny — I wouldn't want to misconstrue it. If you want to take
my testimony, it says this, I did not give Mr. Sweeney anything to
get back into the union. Or one penny.
Senator McCarthy. Did you ever pay him as much as one penny to
get into the teamsters ?
Mr. Terry. No, sir.
Senator ISIcCarthy. Did you give him anything of any value ?
Mr. Terry. I may have bought him a cup of coffee, or lunch.
Senator McCarthy. Outside of a cup of coffee or lunch, nothing of
any value ?
Mr. Terry. Nothing.
Senator McCarthy. Did you give anyone, or promise anyone, a cut
on the pinball operation ?
Mr. Terry. No, sir.
Senator McCarthy. Who was to get the take from the pinl;»all
machines ?
Mr. Terry. Well, if they are my pinballs, I was going to have the
take.
Senator McCarthy. The pinball operation netted around how
much ? How many million a year in Portland ?
Mr. Terry. I don't know about million. I know what mine did.
Senator McCarthy. No, the entire operation.
Mr. Terry. I would only be guessing, sir.
Senator McCarthy. Who besides yourself had tlie sticker, the union
sticker ?
]Mr. Terry. We all had the union sticker after we got in.
Senator McCarthy. You all did ?
Mr. Terry. Everyone that wanted to get in.
Senator McCarthy. There were some 22 pinball operators. Do
you mean they all could get in ?
Mr. Terry. No. I see what you are jjettinof at.
There was a time in the city of Portland that there were some mem-
bers in the pinball business w^ho had union stickers, but the majority of
them did not have. When we signed the petition to go over there and
308 IMPROPER ACTIVITIES IN THE LABOR FIELD
say we are ready and willinij to join the teamsters union, and give us
whatever contract they wanted to give us, we don't care, we are ready
and willing, then the majority of the people in Portland were in the
union.
Previous to that time there was just a small group that was in.
Senator McCarthy. There were some twenty-odd pinball operators,
is that right?
Mr. Terry. The total runs around or close to 50. I think, sir.
Senator McCarthy. Close to 50.
How many got the union sticker ?
Mr. Terry. After we signed the petition, sir I
Senator McCarthy, At anv time.
Mr. Terry. At one time there were about three that had union stick-
ers that I knew of.
Senator McCarthy. You said at one time. Later, how many?
Mr. Terry. They all had, as far as I know.
Senator McCarthy. Was tiiat after the pinball machines were out-
lawed, that they all got the sticker?
Mr. Terry. The pinball machine was in the ]u-ocess of being out-
lawed since 1951. They finally took the games down in May of 1956.
Senator McCarthy. Mr. Terry, you unders<^and my questions very
well. The storv we ffet is that certain pinball operators, 1 or 2 or 3,
had a monopoly, and the teamsters would not deliver material to places
th.tt liad machines that did not have the sticker.
You say originally three had it. You say later pi-actically ail of
them could get them.
Mr. Terry. Right.
Senator jNIcCarthy. Is it not true that it was only after they were
•outhiAved that practically all of them could get the stickers?
Mr. Terry. No, sir.
Senator McCarthy. It was not?
]\Ir. Terry. No, sir.
Senator McCarthy. Can you estinnite how many?
Mr. Terry. How many got the stickers?
Senator McCarthy. Before they were outlawed.
Mr. Terry, Yes, On March 10, or very close to there, 1955, ])inball
games were running, and at that time, sliortly after that, all of the
oi:>erators in the city got the stickers. Tliere was some question as to
wlien ])inball machines were going down in the future. In other
words, tliere was a little doubt that they were going down in the
future.
But thev di.l not go out of the citv until IMav of 1956.
Senator McCarthy. Again a final question, Mr. Chairman.
On March 10, 1955, the machinery was in motion to outlaw them,
Avas it not ?
Mr. Tp]RRY. The machinery had been in motion for 5 years.
Senator McCarttty. I have nothing further.
Mr. Kthstnedy. I just want to clear up one qnestion and do it quickly
wnth you about how you finally got in the union. You did not get into
the union immediately after you all signed this petition to get into
the union ?
Mr. Terry. I wouldn't use the word "innnediately.'' but I got in
very soon after we signed the petition.
IMPROPER ACTIVITIES IN THE LABOR FIELD 309
Mr. Kexxedy. But you were not taken into the union at the same
time as all of your coUeao^ues did i
Mr. Terry. As far as I understand, we all went in at the same time.
Mr. Kenxedy. Accordino- to his allidavit — was Mr. LaslvO the secre-
tary!' Is he not the one that signed the contract for you?
},Li: Terky. I tliink Mr. Goebel, the president, signed the contract.
Mr. Kexnedy. This is, again, his affidavit :
On the clay that the contract was signed I, iu the company of William Goebel,
went to Clyde Crosby's office, at which time Goebel and I signed for the CMMO
and also turned over to Clyde Crosby the sealed envelopes. Just before I signed
the contract I asked Crosby why the bylaws had to be the same as the bylaws iu
the Seattle contract and he replied that it was for bookkeeping purposes and
that it would be easier all around if the conditions of the contracts were the same.
I also asked him why the names of the h)catious and the number of pinball
machines in the locations of each coin machine operator were needed, and he stat-
ed that they needed this information to determine how many union stickers which
were to be placed on the machines would be re(iuired. I then told Crosby that
I purchased my pinball machines from Lou Duuis, who not only was a coin
machine operator, but also a distributor and that if he were not allowed in the
union I might encounter some difficulty from local union 223. I also stated that
Stan Terry had instituted legal action with regard to the legalization question
i>f the pinball machines, which was then in question, and tliat actually he was
the "frout" for the Coin Machine Men of Oregon in this litigation. Further, if
he was not allowed into the union the CMMO might become involved in the legal
action, which they did not prefer.
And this is the important paragraph :
In reply, Crosby told me that Terry and Lou Dunis would come iuto the union
as soon as they got "squared off" with Mr. Sweeney in Seattle, and that Sweeney
would let him, Crosby, know when they could come in. I subsequently learned
that Stan Terry and Lou Dunis made several trips to Seattle and on one occasion
Terry and Dunis were made to wait for 4 hours outside of Sweeney's office
before he would see them.
So you did not get in at that time, IsLr. Terr3^
Mr. Terry. May I take 3 minutes and answer that for you, please,
sir?
The Chairman. Let us take one and a lialf .
Ml-. Terry. One and a half?
The CiiAiRMAx. Yes.
Mr. Terry. As I testified here before, David Fain, my attorney,
called their attorney and told them tliat we were ready and willing to
join the teamsters union.
Mr. Kexxedy. I don't think we have to go through all of that.
Mr. Terry. The legal action that he speaks of in there
Ml-. Jvexxedt. I am not asking about the legal action. You an-
>M-ered in answer to tlie chairman's question that 3'ou got into the union
after this petition was signed and you all -idt went into the union, and
you Ivuow that was not true.
Mr. Terry. Mr. Lasko is under the impression that they were not
going to let me in the union.
Mr. Kennedy. Did you get in at the same time that everybody else
got in?
^Mr. Terry. Yes, sir ; approximately the same time.
Mr. Kexxedy. Did you come in on the same date that everybody
else did in your organization?
Mr. Terry. I don't know about the same exact date, because as far
as I am concerned, when T went in the union, the man came around
and said, ''Here is the ap])lication, T will sign you up." T don't know
310 IMPROPER ACTIVITIES IN THE LABOR FIELD
if it is the same date that he signed up Mr. Lasko's employees and the
rest of the employees.
Mr. Kennedy. Do you not know you were out of the union when
the rest of your colleagues were in the union ?
Mr. Terry. As far as I am concerned, when we delivered that paper
to the teamsters union, if they didn't take us all in the teamsters union,
myself, particularly, the teamsters was going to get the best lawsuit
they ever had m their life.
Mr. Kennedy. We talked about that this morning.
Senator McCartiiy. Mr. Kennedy, can I ask you a question for the
record? It is correct, is it, that Mr. Elkins has sworn under oath that
this witness told him that he paid money to get the charter, call it what
you may, to get into the union, that Beckman, who was in jail with
Goldbaum, said that there was an agreement to get money, so that as
of now somebody has committed perjury?
Would you say that is a fair analysis?
Mr. Kennedy. I think between the various affidavits that have been
submitted, Senator McCarthy, under oath, and the testimony of Mr.
Terry, and the testimony of Mv. Goldbaum, and tlie testimony of Mr.
Elkins, there is a good deal of perjury.
Senator McCarthy. And all of the affidavits that you have re-
ceived— I should not say all, but the consensus of the material and the
affidavits received indicates that this witness paid money to get into
the teamsters?
Mr. Kennedy. I think there is information that he not only paid or
at least that he promised to pay Mr. Goldbaum for the services of
making the appointment with Frank Brewster but tliat he also made a
statement that he paid Mr. Frank Brewster $10,000 or a large sum of
money, and he made a statement to Mr. Lasko, of the Coin ^lacliine
Operators, that.he had to take care and pay what was equivalent to a
man's salary for a year.
Senator %icC \ivyhy. So that either those statements were false or
this witness is guilty of perjury: is that the logical conclusion?
Mr. Kennedy. As I say, somebodv is not telling the truth. Senator.
Mr. Terry. Mr. Chairman, may I say something else?
Senator McCarthy. Mr. Chairman, may I ask one other question ?
The Chairman. All right.
Senator McCarthy. I know you have conducted a painstaking
investigation. I know also that when you are dealing with a racketeer
element, they do not normally sign checks. I assume that from the
investigation of the bank accounts, it is about impossible to pin down
who is telling the trutli and who is not.
Mr. Kennedy. That is correct. Then we have the additional prob-
lem of this fund that we discussed tliis morning, of the $20 off the
top that was received from the various operators.
The Chairman. The Chair had this in mind, gentlemen, and I think
we can shorten it, prior to any comment of a moment ago. The
Chair had discussed with the chief counsel the very thought that
Senator McCarthy ex])ressed. A lot of this testimony cannot be rec-
onciled. Someone is simply telling a falsehood.
Mr. Terry. Well, it is not me. sir.
The Chairman. The Chair did not accuse you. Someone is telling
a falsehood. Someone has absolutely perjured himself.
Mr. Terry. Well, it is not me.
IMPROPER ACTR^TIES IN THE LABOR FIELD 311
The Chairman. AVill you let the chairman proceed ?
Mr. Terry. I am sorr3^
The Chairman. Tlie Chair, witliout objection from the members
•of the committee, will direct that the transcri])t of this testimony be
iinmediately referred to the Department of Justice for such appro-
priate action as in its judgment is warranted.
That is all the Chair wanted to do.
Senator Mundt. Mr. Chairman, are all the affidavits included in
there?
The Chairman. Yes, they are part of the record. They have been
made a part of the record.
Mr. Terry. Mr. Chairman, I have come here and told you the truth
and the whole trutli. From what you said, I don't know whether you
are inferring that I could possibly be under perjury or not, but if I
have to take the perjury accusation for telling the truth, then I will
take it. Because I have told you the truth.
The Chairman. The Chair has not accused 3'ou. I have not accused
anyone. The facts are apparent. It is obvious that someone
Mr. Terry. I am sorry, sir. I just happened to be sitting here.
The Chairman. If you will be quiet, this is not directed to you.
We referred to the others. It is not directed to you any more than
the others. You have testified under oath. The Chair has been
patient with you and has given you time, repeatedly, 2 minutes, 3
minutes, 5 minutes, to make your explanation. You have this after-
noon changed your testimony jfrom this morning.
Mr. Terry. I am not going to change my testimony, because I have
been telling you the truth.
The Chairman. Will you be patient a moment, please, sir?
I do not want to be unkind to you. You have changed your testi-
mony from what you testified to just a few hours ago after you heard
another witness testify. Xotv/ithstanding that, there is still serious
conflict in the testimony.
If that is what the committee is going to have to contend with here
continuously, we may just as well find out who is telling tlie truth as
soon as we can. Tlie record now warrants the action that the Chair
has mentioned, and tliat action will be taken unless there is objection
on the part of some member of the committee.
Senator McCarthy. Mr. Chairman, might I just add very, very
briefly, that while I have been questioning some of these witnesses to
try and arrive at their motives for giving certain testimony, this might,
on the face of it, be construed as a reflection upon the excellent work
done by the chief counsel and the staff. I want to be very clear that I
think they have done a tremendous job.
However, where there is a question in my mind, where I have re-
ceived information, I have no choice but to subject the witness to
rather vigorous cross-examination.
Senator Mundt. Mr. Chairman, may I ask one other question?
The Chairman. All right. Senator.
Senator Mundt. You may have been asked this question, Mr. Terry,
when I was away from the committee table. I would like to have you
answer it again. Have you ever heard of the Acme Amusement Co,
or pinball com])any, or Acme Co. ?
Mr. Terry. Yes, sir, I have.
312 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Mtjndt. Have you heard that it was headed or operated hy
a brotlier of Mr. Elkins, and friends of Mr. Elkins ?
Mr. Terrt. I couldn't testify' to that for sure. I will say in my
experience with the Acme Amusement Co., it vras tliis, tliat this route
that I rented with the option to buy from Mr. Elkins in that location
was a location called Doll and Pennys. During the time, let's say, from
the time that I got my withdrawal card from the union, I had the
machines in Doll and Pennys. Tlie felloAv called me one day and told
me to take my machines out of Doll and Pennys.
Why?
Senator Muxdt. Tlie operator ?
Mr. Terry. Xo. The owjier of Doll and Pennys called me and told
me to take my machines out of Doll and Pennys. So I sent my man
down to ask him why we had to take our machines out of Doll and
Pennys, and he didn't give me any good explanation, except that they
weren't making enough money, or there wasn't enougli play, or I wasn't
giving the right kind of service, and giving the excuses like that whicli
are ordinary excuses in the business. I took my machines out, and theii
some time later in went the Acme Amusement Co. machines.
They had a label on them, a union label. I tried to find out who
actually owned the Acme Amusement Co. and tlie closest I could come
was Herman Walter, and Budge Wright at least solicited the location,
and Herman Walters went down a^id solicited the Mount Hood
Cafe, as Mr. Crouch told me.
Senator Muxdt. My next (juestion is, Did T^Ir. Crouch tell you tlv-r
somebody tried to get him to replace the machines you had to take out
by Acme machines ?
Mr. Terry. Mr. Crouch led me to believe that he could get machines.
Sena tor Mundt. From Acme ?
Mr. Terry. I don't know whether ]Mr. Crouch told me he could oret
them from Acme or not. But he told me if I was in the union, I could
leave my machines there.
Senator Mundt. The Acme machines were, to the best of yoin-
knowledge, union machines ?
Mr. Terry. Wherever I saw the Acme machines, and the reason
why I know they were Acme machines, is on the machines they had a
card "for service call the Acme Amusement Co.," on those machine.^
was a union sticker ; 3-es, sir.
Senator Mundt. So your experience as a competitor of Acme led
you to believe that you were being discriminated against as an operator
JDecause your machines were not union machines and Acme machines
were union machines: is that correct?
Mr. Terry. I would say this, that the Acme Amusement Co. was
using the fact that they had a union sticker to maybe solicit some of my
accounts. But my competitors are always using some reasons, as I
ex])lained before. They have a bowler that goes up to 3.000 or some-
thinir. Acme Amusement Co. said, "We are union. Terrv is not
union."
Senator Mundt. So the answer to my question is "yes." Acme was
using the union label as a device to try to deprive you of some of your
locations of your machines ?
Mr. Terry. That is my impression; yes. sir.
Senator Mundt. One of which was the Mount Hood Cafe?
IMPROPER ACTIVITIES EST THE LABOR FIELD 313
Mr. Terry. Yes, sir.
Senator Muxdt. And one of which was Penneys, did you say?
Mr. Terry. Doll and Penneys.
Senator Muxdt. That is two. Can you name a third one?
Mr. Terry. A third one was another location I aot from Mr, Elkins,
and I think it was the Broadway Cafe.
Senator Muxdt. The Broadway Cafe?
Mr. Terry. Yes, sir.
Senator Muxdt. Can yon name a fourth one (
Mr. Terry. Otihand I can't rememl.er a fourth one. The whole
number of locations where this particular incident happened may only
involve 5 or G places. Even with their union label they weren't makin<r
very much ground.
Senator Muxdt. You think there were 5 or 6 places where you under-
w^ent that kind of difficulty, but you caji remember the names of only 3 ?
Mr. Terry. "Well, no, sir. There is only at the most maybe 5 or 6
places, where they actually took my machines out and put their ma-
chines in.
Senator Muxdt, There were 5 or 6 places where you recall they took
your machines out and put in Acme machines ?
Mr. Terry. Yes.
Senator ]Niuxdt. You have named three of them ?
Mr. Terry. I can only recall three : yes, sir.
Senator Muxdt. But there probably are perhaps three additional
that you cannot recall ?
Mr. Terry. Perhaps, yes.
The Chairmax. All right.
You may stand aside, Mr. Terry.
Mr. Howard Morjran, would you come forward, please?
(Present at this point in the hearino; w^ere Senators McClellan,
McXamara, McCarthy, Mundt. and Goldwat^r.)
The Chairmax. Will you be sworn, please? You do solemnly
.-wear that the evidence you shall «rive before this Senate select com-
mittee shall be the truth, the whole truth, and nothing but the truth,
so help you God ?
Mr. MoRGAX. I do.
TESTIMONY OF HOWARD MORGAN
The CiiAiRMAx-^. State your name, your place of residence, your
business and occu])ation.
Mr. MoRGAx. My name is Howard Morgan. My address is Route 2,
Box -2('), Moninoudi, Oreg. I am presently the public utility conunis-
sJo7ier of the State of Oregon.
The Chairmax. What f onner positions have you held ?
Mr. MoRGAx. How far back do you want me to go, sir ?
Tiie Chairmax. Well, j^ou will probably cover it later in your
testimony.
Do you know the rules of the committee? You have elected to ap-
])ear without counsel?
]Mr. ]\[or<;ax. That is correct.
The CHATi;:\rAX. All right, Mr. Kennedy, you can proceed.
Mr. MoRGAx. I might say I am a voluntary witness who was sub-
penaed at my own request.
314 IMPROPER ACTIVITIES IN THE LABOR FIELD
Tlie Chairman. You were subpenaed at your own request ?
Mr. Morgan. Yes, sir.
The Chairman. May the Chair inquire, do you have a prepared
statement ?
Mr. Morgan. Because I am going to cover a chronological period,
extending over a period of time
The Chairman. You just have notes?
Mr. Morgan. I have simply a set of reminder notes ; yes, sir.
The Chairman. All right.
Mr. Morgan. I would like to say at the outset that I now occupy
a position which by statute is divorced from partisan politics, and
because this testimony will cover the period of time when I was en-
gaged in partisan politics, I want to make it very plain that this does
not reflect my present activities.
I will try to give accurate testimony covering this long period.
I would like to ask the photographers, if they will, to take their
pictures now and not disturb me during the testimony.
The Chairman. All right, gentlemen.
Senator McNamara, 1 am a little confused in my mind at this
point. You indicated that you previously had a political job?
Mr. Morgan. Yes, sir.
Senator McNamara. Does that mean a paid partisan political job ?
Mr. Morgan. No, sir.
At this point, if I may, I will cover my background from the tune
I was in college until the present time.
I am a graduate of Reed College in Portland.
The Chairman. All right, gentlemen, dispense with the pictures.
Mr. Morgan. I am a graduate of the University of California
Graduate School at Berkeley. I was on the staft' of the late Joseph
Eastman, of the Interstate Commerce Commission, Office of Defense
Transportation, here in Washington.
During the war, I was a naval officer. Upon returning to Oregon,
I purchased a livestock ranch and served in the Oregon State Legis-
lature, and from February 1952 to July 1956 I was the chairman of
the Democratic Party of Oregon.
1 now operate two livestock ranches in addition to the position which
I hold with the State of Oregon, having held that job since January
16, 1957.
Over this period of time, I have had, of necessity, many contacts
and made many observations of the teamsters. The period of my
chairmanship was a period of growth and success of the Democratic
Part}?^ after many years of dormancy in the State of Oregon. The
teamsters union and those affiliated with the teamsters union were
among those who were quick to recognize that the Democratic Party
was in a position to win elections, and they attempted to get, in my
opinion, both legitimate and illegitimate, advantage from that growth
of my party.
I believe I am the first person in Oregon, or at least among the first
persons in Oregon, to assess the intentions of the teamsters, and those
with whom they were associated, to calculate their chances of suc-
cess, and the dangers to the State, and to take concrete action to
attempt to stop improper control of government by those who should
not come into such control.
IMPROPER ACTIVITIES IN THE LABOR FIELD 315
I would like to say, as a general statement, that the membership
of the teamsters union is not different in any marked degree from the
membership of any other hdjor union in the State of Oregon, and
many of the teamster officials are fine men, of high integrity. There
are some officials, however, whose actions give'rise to grave concern,
and whom it became necessary to watch, and, upon occasion, keep
under some kind of control.
I never had any concern when the teamsters union supported candi-
dates of my party or of the Republican Party, so long as the team-
sters did so as a part of the unified labor movement, supporting men
on their records, when those records attracted the support of labor
generally. But there were occasions when the teamsters gave rise to
grave concern, not only on my part, but other people in public affairs,
when they picked out a candidate, not sup})orted by the rest of labor,
either in my party or in the other party, and supjjorted him alone.
In 1954, this occurred on two occasions. Mr. AVilliam Langley, a
Democrat, was supported by the teamsters union alone, of all of labor,
and the remainder of labor supported John McCourt, a Republican,
for the position of district attorney. Paul Patterson. Republican, was
supported by the teamsters alone; all the rest of labor supporting
Joseph Carson, a Democrat.
The Chairman. What office was that for?
Mr. Morga:n^. For Governor, sir. In this case we had the team-
sters sup{)orting Democrat for district attorney, a Republican for
Governor, and all the rest of labor going the other way, in both cases.
In both cases, the decision to support these people was made in Seattle.
You heard testimony this morning describing the decision and
where it was made to support Mr. Langley for district attorney. In
the case of Mr. Patterson for Governor, I found, through a leak
from the Teamster paper about a week before the Teamster was pub-
lished, early in the year 1954, 1 would estimate it at March or April —
you can check on that through the files of the Teamster paper, the
issue which carried the endorcement of Mr. Patterson
The Chairman. Was Mr. Patterson a Republican or a Democratic
Governor ?
Mr. Morgan. He was the incumbent Republican Governor. He
succeeded to the governorship after Mr. McKay was elevated to th.e.
Cabinet. I was told about a week in advance that the Teamster news-
paper would come out with an endorsement for Paul Patterson, not
only in tlie primary election, but all through the general election.
Our primary election is in May and our general, of course, is in
November.
I believe this was in April. I called the teamsters and asked to
speak to the leaders, and they arranged a meeting at which I at-
tended, in the afternoon. I cannot remember all those who were
present, but I can remember that John Sweeney was there, Cl.yde
Crosby, and, I think, Malloy. I am sorry that I can't remember the
wliole group. It was a rather large group. I would say about eight
men.
The Chairman. How many?
Mr. IVIoRGAN. About eight.
The Chairman. Eight?
89330—57— pt. 1 21
316 IMPROPER ACTWITIES IN THE LABOR FIELD
Mr. Morgan. Yes, sir.
(At this point, Senator McCarthy left the room.)
Mr. Morgan. We discussed this matter for, I would say, about an
hour and a half, and I went over the various reasons why the team-
sters, in my opinion, should be following the path of the rest of lalbor
in su])porting Mr. Patterson's opponent. I was finally told at the
conclusion of this time, by Mr. Crosby, that he wished I had come
over 2 weeks earlier. My response to that was that I didn't have any
inkling two weeks earlier that the teamsters proposed such a thing.
He then said, "Well, I am sorry, Howard, but the decision has been
made up north, and we have to carry it out."
The Chairman. Had been made up north? What did he mean?
Mr. Morgan. Seattle.
The Chairman. It had been made in Seattle?
Mr. Morgan. Yes.
The Chairman. Who was in Seattle that would make that de-
cision ?
Mr. Morgan. I presume that would be Mr. Dave Beck.
The Chairman. Dave Beck ?
Mr. Morgan. Yes.
The Chairman. You may proceed.
Mr. Morgan. These two endorsements of the teamsters, Mr.
Patterson for Governor and Mr. Langley for district attorney, in
my opinion, as I will ti-y to show in my testimony, and I will go
througli it as rapidly and accurately as I can, were related.
I will now describe the chronological situation in relationship to Mr.
Langley.
This situation began late in 1953 and early 1954. The filings for
the primary in Oregon close in early March. We have what is known
as a completely open primary. There is no endorsements, no nomina-
tion, by party caucus or by party central committee.
The Chairman. In other words, anyone can run for the nomination
who qualifies?
Mr. Morgan. Anyone can run, and this gives rise to the problem of
self-starters. Don't misunderstand me. The system has its advan-
tages, but it also has its disadvantages.
It was known that Mr. Langley wished to run. He had run for
this office in 1948, and during that election some derogatory informa-
tion concerning him had been publicized. His behavior had been
such as not to reassure those who wanted to see good government. His
opponent, Mr. McCourt, a Republican, had been defeated 2 years be-
fore. Mr. McCourt was the incumbent district attorney. He had
been defeated 2 years before for attorney general of the State. It was
my opinion that that had weakened McCourt in such a way that he
would be defeated by almost any Democrat.
Therefore, I attempted to find a good Democrat to run, because I
felt whoever we ran would be the new district attorney. I felt that
Mr. Langley — he is in a lot of trouble, and I don't want to give him any
additional trouble now.
I thought it would be best for the party, and best for the city and
county, if he did not run. I therefore tried to find a better candidate.
I interviewed several of the leading Democrat attorneys. They were
not willing to run. I tried to forestall his filing by encouraging labor
'fe
IMPROPER ACTIVITIES IN THE LABOR FIELD 317
to support McCourt, the Kepublican candidate, a rather unusual thmg
to do, but I did it.
The attempts failed. Mr. Langley filed for the nomination. No
one else did. He received the Democratic nomination by default.
Senator Mundt. In your primary, can anybody vote, or does he
have to register? Do the voters themselves have to register?
Mr. Morgan. We have what is ahnost a permanent registration. It
is registration by party. It is not cancelled unless you move or move
out of the precinct or out of the country. At the time you vote in the
primary election, you call for a ballot according to the party in which
you are registered.
Therefore, only party members vote for the nominees of their own
party.
Senator Mundt. It is about the same system we have in South Da-
kota. I mention that because it would seem to me that if there was a
transmigration of teamsters from the Democratic Party to the Republi-
can Party in order to vote for this Mr. McCourt, that that would
reflect itself someplace in the registration, would it not?
Mr. Morgan. I suppose it is possible. But there was no evidence
that any such move occurred. My judgment is that the majority of
the teamsters are Democrats in the State of Oregon.
Senator Mundt. I assumed that, so I wondered if they had moved
OA^er in the primaries or just in the fall.
Mr. Morgan. They can't move in the primary, sir. They must
vote in their own party.
Senator Mundt. There is a certain length of time, I presume as
we have at home, where they can change registration.
Mr. Morgan. To change registration? Yes. Of course, they can
vote either way in the general election.
Senator jSIundt. Yes ; but if they vote in the primary, they have a
change to change registration up to a certain time, I presume?
Mr. Morgan. Yes; that is right.
Senator Mundt. Do I understand that neither Mr. McCourt or
Mr. Langley had opposition in the primary ?
]\Ir. Morgan. I believe that is the case. I don't remember that
Mr. McCourt had any opposition. I know that Mr. Langley did not.
Senator Mundt. So there would be no reason for them to move
their registrations in the primary?
Mr. Morgan. That is right.
Senator McNamara. While there is an interruption in your testi-
mony, I have a question. To get back to what I was trying to estab-
lish before, you indicated that after you got out of school you were
employed in Washington, D. C, and you inentioned some other em-
ployment, and then you mentioned that you were chairman of the
State Democratic party, as I understood it.
Mr. JMoRGAN. Yes, sir.
Senator McNamara. That is an unpaid job ?
Mr. Morgan. That is an unpaid job.
Senator McNamara. You mentioned that you are now or: a paid
job as public service commissioner. You leave a gap. How did you
make a living between the period of 1952 to 1956, when you were
chairman? What did you do besides being chairman?
Mr. Morgan. I own two livestock ranches, sir.
Senator McNamara. You owned them at that time, too ?
318 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. MoRGAisr. Yes.
Senator jNIcNamara. Then that was your source of income during
that period?
Mr. iMoRGAN. It wasn't as large as it may sound.
Senator McNamara. I wasn't trying to evakiate that. I was just
trying to clear it. You reported that you were making a living one
way or another, and then you left a gap while you were State chair-
man, and then you show that you are now on a paid job.
Mr. Morgan. I am glad you established that. I didn't realize I
had left a gap. I purchased the lirst ranch shortly after World "War II.
After the nomination, Mr. Langley conducted sort of a lone wolf
campaign, which he had done in 1948, with virtually no contact with
the party organization, and hardly ever seen except at an occasional
political rally. His campaign went along quietly, and in spite of
my feeling that McCourt would certainly be defeated, it began to look
as thougli it would be a rerun of 1048, when Mr. Langley lost.
But Jibout 6 weeks or a month before the end of the campaign, Tom
Maloney came down from Seattle. I believe he has testified before
this committee. He moved in with great vigor, and took charge of
Mr. Langley's campaign.
The Chairman. Who was that?
Mr. Morgan. Tom Maloney.
The Chairman. Maloney ?
Mr. Morgan. Yes, sir. He announced loudly and publicly that he
had been sent by Dave Beck and Frank Brewster. He said that he
was both a personal friend of these men and that he was an official of
the teamsters union. I encountered him, as I naturally would, at
many political gatherings and various hotels where he was staying in
Portland.
He put Mr. Langley on a 22-hour schedule out of the 24, an ex-
hausting, round-the-clock performance. A good deal of money was
spent in a very short time. They visited all the changes of shift in the
factories, and so on, and so on.
This, of course, was alarming to me ajid to others in the Demo-
cratic Party who had a pretty fair idea of what it meant, Mr.
Maloney, by his appearance and bearing, and beliavior, his manner
of speech and various other waj^s, indicates that he is not exactly in-
terested in good government.
The Chairman. Is that the same Thomas Maloney who testified
here, that took the fifth amendment the day before yesterday?
Mr. Morgan. That was Frank ISIalloy, I believe.
Mr. Kennedy. He testified the first day of the hearing, Mr. Chair-
man.
The Chairman. The first day of the hearing?
Mr. Morgan. That is the man.
Senator Mundt. And this Tom Maloney, as I understand it, was
not a resident of youi- State, but he came down from another State?
Mr, Morgan. Tliat is correct.
Senator jVLundt. And that would, in itself, arouse our suspicions?
Mr. Morgan. We were not exactly happy about it.
Mr. Kennedy. And said he was sent by Mr. Brewster and Mr.
Beck?
Mr. Morgan. He used BreAvster'sname continuously.
EMPROPER ACTIVITIES IX THE LABOR FIELD 319
Senator Mundt. Did he eA^er refer to John Sweeney ?
Mr. ]\IoRGAN. Yes.
Senator Muneh'. He used that in the same connection, I assume,
as the other two ?
Mr. Morgan. Yes. And lie was seen often with the teamsters, in-
cluding Mr. Sweeney and the other teamster officials there.
Senator Goldwatek. Do you know how much mon«y he may have
sj^ent durino- that campaign ?
Mr. MoR(iAX. Xo, sir, I don't, and I don't have the record sliowing
the official report to the State. A great deal of money was spent. I
can't rememher the figures now, but there was a good deal of boasting
about that point, too. At various times during the campaign I talked
to Mr. Maloney, during the remaining month, and to other teamster
officials, and 1 tried to iind out from them w^iy they were interested
in Mr. Langley's campaign.
I got no particular answer, at least not a convincing one. The
most explicit one that I can recall is, I believe it was Maloney who
said, "John McCourt said. 'To hell with the teamsters,' so we are going
to get him."
I pointed out this was a rather childish reason for spending all of
that money, and all this activity, but I could not get any other answer.
Then I warned them that I certainly would not remain quiet, and
neither would the rest of the Democrats if Langley were successful
and they then moved in on his office.
After the election, the county chairman. Ken Rinke, and I, met a
large number of teamster officials at the Portland airport. We had
gone out there to see someone off, and they, I think, were just coming
in from Seattle, and we met. We sat down and had coffee, and at that
time we issued a final warning to them, after trying again to find out
why they were so interested in Langley.
We issued a final warning to them that we would not tolerate im-
proper use of the district attorney's office of Multnomah County.
Senator JMundt. Do you recall the names of any of those officials ?
Mr. ]\IoRGAN. Mr. Maloney was there, Clyde Crosby, and Mr.
Sweeney.
Senator Mundt. Mr. Crosby, as I understand it, was not a Seattle
man. He was a Portland man ; was he not ?
Mr. Morgan. Yes. They do a good deal of traveling back and forth.
I believe Jim Hagen was there. I think there was a total of about six.
Senator Mundt. Mr. Brewster was not there ?
Mr. Morgan. I have never met Mr. Brewster. I have never seen him
or Mr. Beck. Mr. Beck doesn't visit Oregon, I am told.
Mr. Kennedy. Why doesn't he visit Oregon ?
Mr. Morgan. There are a number of stories about that, and I don't
know whether they are true or not. I understand there was some diffi-
culty over a box factory that furned down some years back, and since
then Mr. Beck has not visited the State.
Mr. Kennedy. Is there an indictment waiting for him if he comes
back to Oregon ?
Mr. Morgan. I have been told so, yes. I do not know whether that
is true. I have not heard of him visiting the State of Oregon.
This brings us up to the election. During the campaign, especially
during the later periods of the campaign, the attorney general of
Oregon, Robert C. Thornton, had been demanding to be allowed by
320 IMPROPER ACTIVITIES IN THE LABOR FIELD
the Governor to investigate a reported scandal in the State liquor com-
mission. Oregon has a peculiar law. The attorney general cannot
supersede a district attorney and conduct a grand jury investigation,
or prosecute, unless he is ordered to do so by the Governor. For him to
act in the capacity of a prosecutor requires specific authorization by the
Governor.
Mr. Thornton had been making public statements for quite a while
about this, insisting, and becoming more insistent. Governor Patter-
son had steadfastly, throughout the campaign, refused to allow him
to investigate the liquor commission, and continued to refuse to allow
him, even after the election where Mr. Patterson was successfully
elected.
On December 10, 1954, the Democrats held a victory celebration,
a banquet, with about 700 people present in the city of Portland.
We had won some offices in that election as we had expected to, and
this was simply a dinner to celebrate and help put a dent in the deficit.
Mr. Maloney showed up at that dinner, and just before the guests
were to sit down, with about TOO people in the room, 40 or 50 of them
standing around in earshot and watching the performance, Maloney
with no warning, walked up to me in the middle of the hall, with a
cigar between his first two fingers, thumped me on the chest, scattering
cigar ashes all over a dark blue suit I had on, and said, "You make
Thornton lay off that liquor commission investigation," in a very
loud voice. Of course, I was angry, and while brushing the cigar
ashes off my clothes, I said "That sounds like an order," and he
said, "That's an order."
I then first told him to go to hell, but the immediate question I
asked him was "Wliat is your interest in the liquor control commis-
sion? Why don't you want that investigated? Why do you care
whether it is investigated?"
He said, "You know damn well what this means to us. Paul Patter-
son is our pigeon and we don't want nobody shooting at him."
What this means is that Oregon is a monopoly State. The liquor
commission is appointed by the Governor. It is a three-man commis-
sion. It is directly responsible to the Governor. Any embarrassment
to the liquor commission, and there have been stories about scandals
in that commission since it was established in 1933, is a tremendous
handicap to the Governor. It is his responsibility.
After I told Maloney that I would have nothing to do with
Thornton's starting the investigation and I would have nothing to
do with stopping it, even if I wanted to, which I didn't, he retired
then and talked to Clyde Crosby. Crosby then approached me, and
in a more quiet tone of voice said, "Has Maloney been trying to give
you a bad time?" and I said, "He has been trying."
Crosby said, "Well, I would put it a little differently, but it amounts
to the same thing. We wish Thornton would lay off."
Senator MuNDT. Straighten me on one point, if you will. Thornton
was the attorney general ?
Mr. Morgan. Yes, sir.
Senator Mundt. He is part of a Republican administration. You
were Democratic chairman. How would you have influence with
Thornton ?
Mr. MoKGAN. IVIr. Thornton is a Democrat. He was the only Demo-
crat elected in 1952.
EVIPROPER ACTIVITIES IN THE LABOR FIELD 321
' Senator Mundt. "VVliile Patterson was a Republican Governor,
Thornton was a Democratic attorney general ?
Mr. Morgan. That is right. It is an elective office.
He ^yas ordering me, and he acknowledged it as an order.
Mr. Kennedy. Crosby confirmed what Maloney said ?
Mr. Morgan. Crosby backed him up with better manners, but that
is not hard to do, when you talk about Maloney.
I told Crosby, whom I had known for quite a while, I had, as I
naturally would, many contacts with him, I said, "Clyde, you have
enough trouble in the labor movement without getting into things like
the liquor coimnission. I don't know what this is all about, but it is
a mistake. While I am giving you advice, let me give you some good
advice ; you better get that gorilla of Maloney back up to Seattle again
and into his cage before he gives you some real trouble," whereupon
Crosby turned his back and went away and didn't speak to me again
for over a year, which was all right with me.
Thornton, a few days later, announced that since the Governor
would not authorize him to investigate the liquor commission, he
would investigate it anyhow by using, in collaboration, the office of
the new district attorney of Multnomah County, William Langley.
He made this .in a front-page announcement in the newspaper. Lang-
ley had not yet taken office. This w^as still in December. He did not
take office until about January 4.
When I saw that in the paper, I drove to Salem and warned Thorn-
ton. I tried to persuade him not to rely on Langley. I told him Lang-
ley was under obligation to the teamsters, that Patterson was, too,
and that if he went ahead with an investigation through Langley's
office, he would be double-crossed and politically damaged.
Mr. Thornton wouldn't believe what I told him. He said Langley
was all right, and Langley wanted to investigate and he was going to
go ahead.
(At this point Senator Goldwater left the room.)
Mr. IMoRGAN. I told him that the next time he talked to Mr. Langley
he would find that Langley's attitude had drastically changed. I
said, "Sure, he is willing to go along now, because the teamsters haven't
talked to him. The reason they haven't talked to him is because they
didn't know you were going to make this proposal. But now that it
has been in the paper, the next time you talk to Langley you will find
he will not cooperate with you."
Mr. Thornton called me about 4 days later at the ranch and told
me this was exactly what would happen.
I then told Mr. Thornton that if he continued to insist that the
Governor authorize him to go ahead anyway, that I could predict with
virtual certainty that Patterson would authorize or order the district
attorney of Multnomah County to conduct that investigation. In
other words, a Republican governor would ask a Democratic district
attorney to investigate a liquor commission in which there was alleged
to be a scandal directly under the responsibility of the Republican
Governor.
Mr. Thornton wouldn't believe tliis either, but tliis is exactly what
happened, as a result of Mr. Thornton's continued insistence that
Governor Patterson send him in.
(Senator Goldwater returned to the hearing room.)
322 IMPROPER ACXn'ITIES IN THE LABOR FIELD
Mr. MoRGAX. I then went to Mr. Thornton and ur^red that he stay
away from that investigation. I said it was sure to be a whitewash,
that the same people controlled both the parties to it, and that Mr.
Thornton should stay as far away from it as lie could, that if he par-
ticipated in any way he would do so without power, and he would be
damaged.
That i:)rediction came true, too.
In the first place, no indictments came out of it, and it was popularly
regarded as a whitewash, the latest of many, and second, in the grand
jury, there was testimony produced by a private investigator named
Bartholomew, in collaboration witli another private detective named
Skousen, who both made the statement that Thornton had ap])roached
them and asked them to undertake this work on liis paj-roll because
it was a very smart political move which might make a great political
future for Tliornton.
These men testified so before the grand jury, and then came out-
side the grand jury door and repeated their statements to newspaper-
men, which, as you know, is illegal. Mr. Langley had no objection to
this procedure at all.
In the recent grand jury cases, it was learned that this testimony
by these private investigators was arranged by IVIr. Elkins, Mr. Mc-
Laughlin, and Mr. Maloney, who brought these private investigators
to Mr. Langley and set up this deal.
I don't want you to think I am a genius, but I predicted from the
start., almost play-by-play, what was going to happen in this situation,
and it happened almost exactly as I said it would.
These two men, both elected to office by the teamsters' support,
whereas the rest of labor's support went to their opponents, were work-
ing as a two-man team, the Governor and the district attorney.
By the fall of 1955, the situation looked worse and worse. There
was no question in my mind that an attempt was being made to take
over law enforcement in the State of Oregon from the local level
in Multnomah County, in Portland, right up to and including the
Governor's chair.
The Chairmax. For whom to take it over ?
Mr. Morgan. For the teamsters and the persons with whom they
were associated.
The Chairman. You are speaking principally of Brewster and Beck
andMalloy?
Mr. Morgan. And Maloney.
Tlie Chairman. And Maloney.
Mr. Morgan. At this time I did not know of the activities of Mr.
McLaughlin. There are manv things I did not knoAv. But I knew
enough to be sure tliat attempts were being made, heavy pressure was
being put on the Multnomah County commissioners to control them.
One commissioner, Mr. Gleason, who resisted control by the teamsters,
a great many plots and maneuvers were in circulation attempting to
remove him, to defeat him, oi- to keep him from running again. That
was at the county level. There was the move on to support Terry
Schrunk, the sheriff, for mayor. There were several theories about
this. One was that the teamsters had not been able to make a deal
with him, although they had been trying, and wanted to shift him
inside the city in order to be able to replace him with a sheriff of their
own choosing after gaining control of the county commissioners,
IMPROPER ACTIVITIES IN THE LABOR FIELD 323
thereby making it possible for tlieni to appoint to that office a man of
their own choice. The^^ Avished to replace the attorney general, who
was an honest man, and a scrapper, with an attorney general accept-
able to labor from either party. That made no difrerence to them.
The CiiAiiJMAx. Do yon mean acceptable to labor as such or accept-
able to the teamsters ?
Mr. MoKGAN. Acceptable to the teamsters. Let me say in this
regard that Mr. Tliornton had aroused the displeasure of some of the
other labor unions and 1 tliink their objections were legitimate.
Nevertheless, the teamsters officials had particular reasons for wish-
ing to be rid of Mr. Thornton and they had led the attacks on him and
led the movement to endorse another man.
(At this })oint in the proceetlings the chairman left the hearing
room. )
Mr. MouoAN. 1 think theie were illegitimate reasons on top of legiti-
mate reasons for the opposition.
Senator Mundt (presiding). Do I understand at that time Thorn-
ton had incurred the disapproval of other elements in labor for legiti-
mate reasons not connected with corruption?
Mr. MoRGAX. That is right.
Senator Muxdt. So in this case the teamsters were joined with other
elements of labor in trying to carry out a mutual objective which they
approached for different reasons?
Mr. ]\ [organ. Yes, sir. I would say the rest of the objections to
Mr. Thoi'uton were comparatively mild. I'lie objections of the team-
sters were very, very bitter and were related to other than labor
matters, in my opinion.
And, of course, on top of all this, the teamsters wished to continue
their close ties with the office of Governor Patterson. What this
amounted to is simply this : If they had the same kind of luck, the
same kind of })renks in the 1056 elections with these objectives in mind
that they had already had in the 1954 elections, they could have put
together control over law enforcement procedures extending from the
local level in Mulnomah County to the Governor's chair without a
break in the chain, without a missing link.
At this time, after watching this situation for al)out a year, and
having been unable to prevent or control it by myself, I came to the
conclusion that neither I, nor a political party could control the situa-
tion, that it required an expert investigation beyond my capacity or
the party's and that full publicity was necessary and was the fastest
remedy because the law-enforcement procedures on the local level were
not in friendly hands.
And I and the people who were working wnth me had done all we
could and could not go further. So I went to the newspapermen in
September of 1955.
Mr. Kennedy. You felt by this time it had become a very dangerous
situation in the State of Oregon?
Mr. Morgan, Yes, I had.
Mr. Kennedy, By the control the teamsters were getting over all
machinery of government, is that correct, or their attempt to get
control, their efforts to gain control?
Mr. Morgan. Yes. When we say "teamsters," I want it clearly
understood, as I tried to make it clear, that I am talking about a few
324 IMPROPER ACTIVITIES IN THE LABOR FIELD
officials at the local and higher levels, not the rank and file member-
ship of the teamsters' union itself.
Mr. Kennedy. But you felt that the efforts of the teamster officials,
and their successes in certain fiields, had grown to be a dangerous
situation in the State of Oregon?
Mr. Morgan. Yes.
Senator McNamara. Mr. Chairman?
Senator Mundt. Senator McNamara.
Senator McNamaea. Are you going to elaborate on the business of
having gone to the newspapers? Are there certain papers, or local
papers?
Mr. Morgan. I went to the two metropolitan papers in Portland,
the Portland Oregonian and the Oregon Journal. I talked to Mal-
colm Bower, one of the editors of the Oregonian, and I talked to Doug
McKean, former political editor and, at that time, editor of the edi-
torial page of the Oregon Journal, I also talked to Wendel Webb,
editor of the Oregon Statesman, published by former Governor
Sprague. All of these papers are Republican, incidentally.
Senator Mundt. That is in Salem, is it not ?
Mr. Morgan. In Salem, and probably the most influential paper
in the State. I found an attitude of more or less disbelief on the part
of the people I talked to. It was a rather fantastic story and I found
that they felt I was an alarmist and that this could not possibly be
true.
Oregonians are fond of believing that Oregon is different from
other States. The things that could happen elsewhere just could not
happen in Oregon. At any rate, nothing was done about it by the
papers.
I commented a couple of times to various people I spoke to. But
there was no action until Mr. Elkins had his falling out with the
people and came to the Oregonian and talked to some people that I
had already talked to.
(At this point in the proceedings, the chairman entered the hear-
ing room.)
Mr. Morgan. Then it was noticed, of course, that his story dove-
tailed with mine. The Oregonian then, in early 1956, began pub-
lishing a series of articles which, I presume, had something to do with
the beginning of these hearings.
Then, in April or early May, the Oregonian began to be sued;
notice of intention of suit was filed with the Oregonian and that
paper strongly requested that I make a formal statement for publi-
cation covering the chronological sequence of events which I have
described to you.
I did so and an article was published on May 8, 1966, giving a
shorter version of the foregoing testimony.
Senator Mundt. Quoting you ?
Mr. Morgan. Pardon ?
Senator Mundt. Quoting you?
Mr, IVIoRGAN. I wrote it at their request.
Senator Mundt. But was it quoting you in the paper? Was it
known that you wrote it?
Mr. Morgan. Yes,
Senator Mundt. Were you ever threatened with a libel suit?
Mr. Morgan. No, sir.
EVIPROPER ACTIVITIES EST THE LABOR FIELD 325
Senator Muxdt. As a consequence, you were not threatened?
Mr. Morgan. No, sir.
Senator Mtjkdt. The teamsters never tried to take you into court
on that?
Mr. Morgan. No. I think your committee has a copy of that in
the files.
Senator Mundt. From your very intimate knowledge of this whole
situation and the very dedicated attention you gave to it, you. of
course, followed, I presume, the stories growing out of Mr. Elkins'
conference with the newspapers, pretty much paragraph by para-
graph ?
Mr. Morgan. Yes, sir.
Senator Mundt. Could you tell us whether, in your opinion,
by and large, the stories as reported through the press from Mr.
Elkins jibed with the information you had independently been able
to develop ?
Mr. Morgan. Well, a great deal of Mr. Elkins' material was en-
tirely new to me.
Senator Mundt. That, of course would be true. I mean just on
the points where you did have independent knowledge, I am wonder-
ing whether on those points it pretty well described the information
you had.
Mr. ISIoRGAN. It made understandable a great many things I had
wondered about and not understood before. All the stories about
the E-R center, the exhibition and recreation center, and the alleged
scandals surrounding that, were new to me.
(At this point in the proceedings Senator McNamara left the hear-
ing room.)
Mr. Morgan. I knew about the pinball operations, and I knew there
was a struggle in the city of Portland for control of the underworld,
but I did not work in those areas. As a matter of fact, I saw Mr.
Elkins for the first time within the past week.
Senator Mundt. I understand. You are a sheepman and I come
from sheep country and sheepmen are not racketeers. You would
not know much about that.
Mr. ^Morgan. Mr. McLaughlin's attorney introduced him to me at
the door a few minutes ago.
Senator Mundt. I was simply trying to establish the degree of
credibility of Mr. Elkins' testimony. You bring us a new source of
information quite independent from the racketeering elements involv-
ing pinball operations and vice, but related to the political activities of
Mr. Elkins. I was wondering whether you knew whether, in those
areas where you were concerned, there seemed to be a considerable
degree of accuracy in the reports you read from Mr. Elkins.
Mr. Morgan. If you are asking for a comment of opinion, I would
like to say this : I think Mr, Elkins made the statement in testimony
here the other day that there was grave danger of this coalition taking
over law-enforcement procedures in Oregon. I have made the same
statement and I think that was true. In the same testimony, how-
ever, he pointed out the teamsters helped defeat a mayor in the city
of Portland and made it sound as though justice and piety had suf-
fered a terrible blow by virtue of that fact.
Such may be the case; I do not know. But I do know that Mr.
Elkins has been doing business in the city of Portland for a long time
326 IMPROPER ACTIVITIES IN THE LABOR FIELD
under a great many administrations, including the administration of
that mayor, and I think perhaps that ought to be added to Mr. Elkins'
statements about local government in the area.
The Chairman. Have 3^ou finished ?
Mr. Morgan. I think Mr. Kennedy has a question.
Mr. Kennedy. Did you ever have any other ai)proach or conversa-
tion that disturbed you at all about the power of the teamsters ?
Mr. Morgan. Well, it has been a disturbing thing to me continuous-
ly, as I told you, since some time in 1953. There was an incident in
1966. I might say there, too, the teamsters' union again backed a man
who was supported by the teamsters only, while his opponent was sup-
ported by all the rest of organized labor. The teamsters supported
Jack O'Donnel while all the rest of organized labor supported Stanley
Earl, who testified here. Wherever this occurs, in my opinion it is
controlled or brought about bv the side interests that the teamster ofS-
cials have as individuals not as representing labor. If I might add
another point
The Chairman. In other words, you think the interest of the offi-
cers or those that are in control of the teamsters in certain areas, their
interests are given j^reference over the interests of good government
and also the interests of the union itself, of the labormg people ?
Mr. Morgan. In eveiy case where you have seen the teanivSters
breaking away fro)n organized labor and supporting a candidate
against organized labor, in my opinion that has been the situation and
the cause of it; yes, sir.
The Chairman, In other words, their breaking away and support-
ing Langley, that is a concrete illustration where they supported
Langley Avliile all the rest of labor supported McCourt?
Mr. Morgan. Yes, sir.
The Chairman. You have evidence in the sequence of that becom-
ing pretty apparent ?
Mr. Morgan. Yes, sir.
The Chairman. That was where the officers of the union were un-
dertaking to get control for personal profit and gain to serve their
own interests rather than serve the interests of labor as such ?
Mr. Morgan. That is correct, and, sir, I want to say that I acted
accordingly. In 1952 I helped defeat John McCourt for attorney
general of Oregon. I thought and hoped Mr. Thornton would be a
better man.
He happened to be a Democrat. That had something to do with it,
of course, but in 1954, when McCourt ran against Langley, I did
nothing to help I^angley and did quite a lot as I had to do it to keep
from disturbing the people in my own party, to help McCourt.
Senator Goldwater. I would like to ask this question : In the course
of your studying the situation in your own State, have you had any
reason to observe similar attempts by these officials of the teamsters
union, say, in Washington, California, or Idaho ?
Mr. Morgan. No, sir, I have not.
Senator Goedwater. Have you heard of any attempts similar to the
ones made in Oregon ?
Mr. Morgan. Nothing except what you have occasionally read in
the newspapers or hear about. You are from a western State. Those
States are so big that you just don't hear news from the other States
on a continuous basis.
IMPROPER ACTIVITIES IN THE LABOR FIELD 327
Senator Goldwatek. I thought possibly in the course of your study
you had come across some evidence that it might be going on in Wash-
ington, California, and Idaho.
You would not be conversant with the Southw^estern States, I know.
Mr. ]\[oRGAX. I was so engaged and so sliorthanded and so short of
help and everything else, in the intensive political work, that I simply
kept my nose in Oregon attairs and had very little contact with the
States outside.
(At this point in the proceedings Senator McNamara entered the
room.)
Senator Goi.dwater. In the field of manpower around election day,
did these teamster officials force their members to go to work at the
polls for the candidates they were backing, do you know?
Mr. Morgan. No. I would not say that, sir. That kind of volunteer
political work, such as I have seen of it, is something that the members
seem to want to do. There has been a great deal of it in Oregon in the
last two campaigns in 1954 and 1956.
I never heard a complaint from a member of a labor union that he
had been made to do it or that any penalty had been put on him. I am
positive I would have heard if there had been any valid complaints.
Senator Goldwater. They exercise their search for power through
attempts at intimidation and money, is that about the sum of it?
Mr. jNIorgax. Yes. Although in the field of politics, I would not
say there was much intimidation, except the threat of political op-
position. There is no violence or anything of tliat kind.
Senator Goedwater. No, I was not referring to violence.
Senator Mundt. I am trying to figure something. Bad though they
were, and vicious though their plot obviously was, you did not have by
any means a majority of the heads of local teamster unions involved
in this plot that came down from Seattle. You had a few people from
Seattle, you had a few people from JNIultnomah County, but they would
not in any sense be anywhere even near a majority, I suppose, of the
heads of the labor miions.
Mr. Morgan, That is correct.
Senator Mundt. To establish the effectiveness of their plan, may I
ask you is it j^our observation that members of labor organizations, or
let us say the teamsters organization since that is what we are dealing
with, pretty much follow w^illy-nilly the proclamations of their leaders
and what they read in their papers ?
Otherwise, I do not see how this plot could have any effectiveness be-
cause tliere was not enough of them alone' to make any difference in the
voting place.
Mr. Morgan. My impression of the teamsters is that it is controlled
from tlie top down.
Senator Mundt. And that goes for voting at the voting places ?
Mr. Morgan. Yes. And I think that is my experience in almost
5 years now in dealing with labor unions in the field of politics. I
think that is the chief source of trouble. That is the thing that makes
them the hardest to deal witli.
The chief thing that makes them hard to deal with, that onv imion,
is that they can be and are, organized from the top down.
Senator Mundt. Sort of by training or by precedent or by tradition,
the poor old teamster driving a truck some place who does not know
anything about what is going on. He just is inclined to follow what-
328 IMPROPER ACTIVITIES IN THE LABOR FIELD
ever he reads in his teamster paper about, "This is the way you ought
to vote" ?
Mr. Morgan. I think it is carried a little farther than that. When I
was going to college, I carried a teamster card for a short while. In
those days, and that is much different tlian the present, there were
prizefighters hired by the teamsters as business agents.
One simply didn't get up in a union hall and make the wron^ move
at the wrong time. If lie did, he might be helped home, and his wife
might not recognize him when he arrived, I don't laiow that that
is done on such a scale anymore and I doubt that it is, but that form
of control is still there.
If I might make a suggestion, and I hope you won't think me
presumptions, from my own experience I would think that one of
the most valuable things that an investigation of this could do would
be perhaps either to eliminate the non-communist oaths for certifica-
tion before labor bargaining before NLRB as being no longer neces-
sary or place alongside of it as a requirement for certification for
bargaining, a minimum requirement of democratic procedures in
the constitution and bylaws of the union, regular elections, the re-
moval of the officers or the recall of officers, free government by the
membership.
My opinion is that that simple thing, and with penalties attached
to it if they lose their bargaining rights, would do m.ore to clean up
situations like this than anything else I know of.
Senator Mundt. I do not see any relationship between your second
suggestion, which I think is very commendable, and your first sug-
gestion, which I look at with sort of a jaundiced eye.
You could have both, it seems to me.
Mr. Morgan. I understand your feeling on that point of view.
Do not disagree as to the merits of communism. I am not at all
sure that we are — we are getting on a side issue now — that that oath
is as effective as it ought to be.
Senator Mundt. You do not think there is any necessary inter-
relationship of having those two oaths?
Mr. Morgan. No. But I would say that is putting a price tag on
certification of a imion and that is a very bad way to insure some of
the democratic controls within the union that I think would solve
a lot of these things, especially^ in the field of politics and public
affairs, as well as honesty of administration of union funds, and so on.
Senator Mundt. So that your testimony cannot be misconstrued,
may I say that this is what I think you are trying to say : That as of
today, it is even more important in the public interest to have this
second kind of oath taken than it is the Communist, but that you
are not opposing the Communist oath?
Mr. Morgan. That is correct.
Senator Goldwater. Mr. Chairman; I would like to comment on
that. I am afraid that the impression has been left here by the testi-
mony of several witnesses that the practice in the union elections such
as we heard were being practiced in Oregon, is a j)roblem.
About 4 years ago I made a study of miion constitutions and bylaws
to find out how democratic the processes were. By and large most
unions in this country have provisions in their constitutions and by-
laws calling for the democratic processes and elections.
IMPROPER ACTWITIES IN THE LABOR FIELD 329
I would say probably 95 percent of them do. The problem, and I
think you all will agree with me here, is one of making any organiza-
tion use its democratic practices. You find it in your own sheep
organization as 1 find it in my own business organization, that no one
comes to the meetings.
We found evidences of strikes of over 8,000 workers being called
on the vote of 40 people. Well, is that following the democratic
processes? We heard testimony here of an average of 35 or 40 union
men attending meetings of a union that represents over 800 members.
I know in my own city, maybe there will be only 25 at a meeting of
a union of 2,000 people.
So the wliole problem is really to try to get Americans to vote,
whether it is in national or local elections, to get Americans to vote
in their unions and vote in their business establislmients. Is that not
pretty basic ?
Mr. MoRGAX. I would think so.
Senator Gold water. I am glad you mentioned that other factor.
That suggestion of j'our is a good one. If ever we get around to
amending the Taft-Hartley Act, I hope we include that in it.
The Chairman'. One observation the Chair would like to make is
that it seems that one way they avoid the democratic processes of giv-
ing the membership the opportunities to elect their officers is by placing
them in a trusteeship and letting them remain tliere for many years
and, therefore, the oflieials make (lie appointments and, therefore, con-
trol all of the fmictions of the union. We will have to find some
solution to that.
Senator McNamara. I was interested in your remark that you
thought the teamsters union was controlled from the top down. Are
you referring to the teamsters union nationally or in the area you come
from?
Mr. MoRGAX. Tlie only area I am familiar with is my own, sir.
Senator McXamara. You do not necessarily mean that this is so in
other districts throughout the country ; or do you ?
Mr. Morgan. I have read that it is so, but I don't know that it is
so, I am sure that it is so in my area.
Senator McNamara. From the record that was presented, I believe,
by the international to this committee, there is an indication that more
miions are in that category of being in trusteeship in your area, the
northwest section, than there are in the rest of the countiy. So, ap-
parently, it is peculiar to your area, comparatively, at least. I was
interested in your development of the idea that these people you refer-
red to, the certain officials of the teamsters union in your area, were
trying to get control of the whole State.
Does that mean they interfered at all levels of government? Did
thev get down to the city council or to the mayor and such levels
as that?
Mr. Morgan. There has been testimony here about orders being is-
sued to the mayor of Portland, to replace the police chief, and so on.
They got pretty rough with tlie Governor.
Senator McNamara. And less rough with the mayor? "V\Ti ;t is the
comparative ?
Mr, Morgan. I think they got less rough with the mayor. They got
very rough with the district attorney. When they got around to
giving orders to me, I felt they were spreading themselves about as far
330 IMPROPER ACTIVITIES IN THE LABOR FIELD
as they could. What they proposed to do with it when they got all fixed
up, I haven't figured out. I think they are a little like Colonel Nasser,
they never really thought it through.
Senator McNamara. During your time, didn't you have a lady
mayor of Portland ?
Mr. Morgan. Yes, sir.
Senator McNamara. She was defeated. Which side were they on
in that ?
Mr. Morgan. They were on INIr. Peterson's side, the mayor that they
defeated in the last election. She was the good-government mayor.
Senator McNamara. I understand she was a good mayor.
Mr. Morgan. Yes; she was. And the teamsters were opposed to
her. Mr. Peterson, who is present, was the candidate that defeated her.
and he did it with teamster help.
Senator McNamara. You don't differentiate between teamsters in
this category. Are you talking about these certain people in the team-
sters or all of the teamsters ?
Mr. Morgan. I am talking about the fact that the union support was
given to a candidate. The decision seemed to be made by 6 or 8 men.
and sometimes fewer, and the membership then carries through with
it.
Senator McNamara. Did the rest of organized labor in the area sup-
port the opposition to this lady that was mayor, or was she not endorsed
by Inbor?
Mr. Morgan. I am afraid I can't answer that question accurately.
Senator McNamara. Were you not the State chairman at that time?
Mr. Morgan. No. That was sevei'al years ago.
Senator McNamara. Was it 1948? Well, I thought it was more
recent.
Mr. Morgan. No.
Senator McNamara. Then you do indicate that, at all levels of
government, you find these certain people that you put in a different
category than the rest of the teamsters when you started out. And you
find them interfering with all levels of government ?
Mr. Morgan. That is riffht; and I don't include all officials of the
teamsters union in that. There are officials of the teamsters union in
Oregon, in Portland, in eastern Oregon, who I think are fine, honor-
able, reputable men.
Senator McNamara. Do you indicate that directly these people
support other than the candidates that are endorsed by the rest of
the labor movement, and you indicate in your testimony that usually
they seem to have a good, selfisli reason for doing it? Was that cor-
rect? Who did they support in the national election recently?
Mr. Morgan. In Oregon, do you mean ?
Senator McNamara. No, I mean in the national election. Who did
they supj)ort, these people in the teamsters union, Beck and these
others that you are talking nbout ?
Mr. Morgan. Beck was announced by the New York Times as sup-
porting Mr. Eisenhower.
Senator McNama.ra. Well, in your State that you know more of than
nationwide, did he support Mr. Eisenhower ?
Mr. Morgan. I don't think the teamsters in our State did anything
one way or the other about the presidential election.
IMPROPER ACTIVITIES IN THE LABOR FIELD 331
Senator McNamara. Was it a fact that nationwide, as the press
said, Mr. Beck came out for Mr. Eisenhower ?
Mr. Morgan. Yes, that is a fact.
Senator McNamara. I do not think you want to infer from your
testimony that he Avas motivated by these things, and that he could
control Mr. Eisenhower, do you ^
Mr. Morgan. I am not qualified to make a comment on that, sir. .
Senator McXamara. But you did comment that they entered into
these elections because they tried to pick people, regardless of party,
who they could control. Didn't you give that kind of testimony?
Mr. Morgan. I said that I had that feeling, and very definitely,
whenever they went in opposition to the majority of labor.
Senator McNamara. Let me rephrase that question. Do you have
that feeling as it applies to national elections ?
Mr. Morgan. Well, I don't think Mr. Beck does things in politics
for nothing. I w^ouldn't go so far as to say he thought he could con-
trol the President of the United States, but when he throws his
support, speciallj^ against the majority, the bulk or the remainder of
the organized labor movement, he can see something in it for him and
his top officials, in my oj^inion. I am not saying that is money or graft,
but some kind of preferment or advantage, let us say.
Senator McNamara. Influence of some type ?
Mr. aIorgan. Yes.
Senator Goldwaitsr. Just to sort of put the record straight, I
might remind this gentleman and the questioner that I think 43 per-
cent of the union members of this country voted for Mr. Eisenhower,
so I think possibly that would indicate that the majority of the leader-
ship of organized labor could have been wrong in the person that
they backed.
The Chairman. Gentlemen, let us not get involved in that anymore
than we have to.
May we proceed ?
Senator Mundt. Just cut it off on one side of the argument, Mr.
Chairman.
The Chairman. If you want to argue about Eisenhower and Steven-
son, and the Democrats and the liepublicans, if that is what the com-
mittee wants to do
Senator jMundt. I have no desire to prolong it. I like to keep it
balanced, that is all. There was a little political sting, and I am glad
Senator Gold water removed the barb.
The Chairman. The Chair has no objection to what anybody has
said and will indulge the committee from here on. I w^as looking at the
clock. I was trying to accommodate all of you.
Proceed.
Mr. Kennedy. Mr. ^lorgan, was there any other incident at a later
time regarding the teamsters that disturbed you at all ?
Mr. Mor(;an. Yes, there was an incident that puzzled me and gave
me a great deal of concern in PJ56. It still does puzzle me. I don't
thoroughly understand it yet.
In July of 1956, 1 was asked to take a position on the campaign staff
of Governor Adlai Stevenson for President, which I did, and as a con-
sequence did not run for reelection as State chairman. I terminated
80330— 57— pt. 1 22
332 IMPROPER ACTIVITIES IN THE LABOR FIELD
my office there on July 15. I had already been working for Mr.
Stevenson for 2 weeks, and continued to work for him until after the
convention, when my assignment was completed. I returned to Oregon
and took on the job of doing some of the managing and particularly
the finance work of the campaign for Governor, of State Senator
Robert Holmes, who was elected Governor in November 1956.
I might say to start with, so w^e don't have to go back and do it, that
Mr, Holmes' budget for the whole election was $43,000. He was elected
Governor on that figure. Approximately $15,000 was deficit. At the
present time, that deficit still remains at about $9,000. That gives you
the picture. There was a shortage of money, I don't know of a candi-
date that doesn't have a shortage of money.
But at the time I came back out to Oregon, he was concerned with
meeting a particular item, which was his billboards all over the State,
approximately a $10,000 item. He had been having conversations with
various people about this. This was sort of a confused report which
was not clear to him, and which he related to me, that there was a man
who might be able to locate $10,000 for him. He was under the impres-
sion that this had something to do with reforming the liquor commis-
sion. I am speaking about Senator Holmes' opinion now.
Mr. Kennedy, He said somebody had spoken to him that they had
$10,000 or could get hold of $10,000, and that it was tied up in his
reforming the liquor commission ?
Mr, Morgan, Yes, Somehow assume in the neighborhood of
$10,000 was available, having some relation to a reform in the liquor
commission, I told him I though this was odd.
He had been trying to reform the liquor commission in the State
senate for 4 years, and it wasn't necessary to encourage him with
money to get him to do that. I also told him I thought it odd that
anyone would be overcome by civic virtue to the extent of $10,000
when the liquor conunission has been a continuous nuisance and prob-
lem for over 20 years.
So he told me where the information came to him from, and I said
I would call the man, which I did — Mr. Jim DeShazor — and I would
ask him about it. I had known Mr. DeShazor for a short period.
Mr. Kennedy. That is James C. DeShazor, Jr. ?
Mr. Morgan. That is right. He is a small-business man. He has
a plastics manufacturing plant in Portland. He had been active in
1954, had changed his registration, as I recall, to Democratic, had
organized a small-business man's committee, and had worked, in gen-
eral, for Democratic candidates, and was still interested.
In 1956, on the basis of the work which he did in 1954, when I was
required to appoint a chairman for a small -business man's committee
for the party in Oregon, at the request of National Chairman Paul
Butler, I appointed Mr. DeShazor. I had seen him once or twice since
the appointment, so I called him about this, and told him I heard
about about this, and we were in a jam for money for those billboards,
and what did he know about something that would help.
He told me to see a man named Matthew Spear.
Mr. Kennedy. S-p-e-a-r?
Mr. Morgan. Yes. I had met JNIr. Spear a few months before
through Mr, DeShazor, Mr, Spear had told me that he was a Repub-
lican but he wanted to helj) Democrats, He ran a beer distribution
IMPROPER ACTIVITIES IN THE LABOR FIELD 333
company, I think I had had a 10 minute conversation with him in
Mr. DeShazor's presence prior to this occasion.
So after tliat I had another conversation with Senator Holmes and
told him that I still dichi't make much sense out of this, and perhaps
I had better call Spear and ask him to lunch, and talk things over
with him and see what was m the wind.
So I did.
I called him and made an appointment for lunch with him. We went
to a restaurant and had a lon<r, leisurely lunch, a drink or two, and dis-
cussed things. He talked about 2 or 3 matters before he got around
to the main point, all relating to the liquor business, and as it happened
they were matters that I knew about before, and so they didn't add
anything to what I knew.
Finally I asked him, "What is this about $10,000 floating around, or
some figure like that, that might be available for Holmes in connection
with the liquor commission? What is the story behind it?"
You must remember this conversation took place nearly 6 months
ago, about the middle of September. I will do my best to reproduce it
verbatim, but that will be an imperfect job at best.
His response was, ''Well, that money, I heard about it, that money
comes from Beck and Brewster. Beck and Brewster are the source
of that."
I said, "Do you mean the teamsters ?", and he said, "Yes."
I said, "What on earth do they want in connection with the liquor
commission?" He said, "They want a man appointed to the liquor
commission."
I said, "T\niat sort of a man?" He said, "I understand they want a
teamster official appointed."
I said, "Well, that is fantastic. It is ridiculous. No governor in Ms
right mind. Republican or Democratic, is going to appoint a teamster
official on this or any other commission for 20 years after this scandal
in Portland." And I think I added that this was a sample of their lack
of judgment.
What they ought to be doing if they wanted something like that,
would be to aim at a businessman under camouflage, or a lawyer, or
some respected person, who had an unknown connection with them,
but instead, as usual, they wanted to put one of their own officials on.
I told him it was an impossible thing. Then I said, "Why do they
want a man on the liquor commission ?"
By this time I was beginning to get interested because of my ques-
tions I asked Maloney. You will recall, when he ordered me to get
Thornton out of the investigation of the liquor commission. So I
asked the same question, "Why do they want a man on the liquor
commission?"
The answer was that they wanted a man on the liquor commission
because they had bargaining disputes and membership disputes with
Certain distilleries in the East. They were trying to sign up the em-
ployees of the distilleries in the East, and they wanted an arrangement
whereby they could prevent liquor from certain distilleries being pur-
chased and sold within a monopoly State like Oregon, not a drop with-
in the boundaries, until a particular distillery signed up with the
teamsters.
I suppose my jaw dropped open a little. I never heard that one or
one like it before, and Mr. Spear said, "Well, I understand this is go-
334 IMPROPER ACTIVITIES IN THE LABOR FIELD
ing on. It is being done. The rough stuff takes place a long way from
the State where it happens, but it is going on."
I said, "I thought this was," I think I used the term, "industrial
blackmail, and anj'body who went near Senator Holmes or went into
this office with a story like that would probably get thrown out."
And I told Spear that I thought he oughtn't to do that, but to just
let it lie with me. I went back to the campaign office and talked to
Mr. Holmes about it, and his response was — you don't want profanity
in the congressional record
The Chairman. I believe you can leave that out.
Mr. Morgan. He felt this was one we would not explore. I will
put it that way. So it was left that way.
The Chairman. All right.
Mr. Morgan. It was left that way. I think I may have talked to
Mr. Spear again by telephone shortly afterward to tell him that, or
perhaps the Governor did. I don't think I saw Mr. Spear again until
some time in December. I have only seen him 2 or 3 times since.
I want to make it plain in telling about this incident. I said at the
outset that I was puzzled about it then, and I still am. It can be
construed in a number of ways, but I want to make it plain that Mr.
Spear did not identify himself as a spokesman for Beck and Brewster,
or state that he could go and get the money and deliver it at a certain
time, or in any way ask me or the Governor to accept a proposition nor
identify it as a proposition.
The Chairman. What was his interest in it?
Mr. Morgan. My conclusion was, after it was over, that he had
described a situation, which apparently he knew about, that could
either be explored or not, and because of my two comments, one in the
middle of the story and one at the end of it, I think he got a pretty
clear notion that we did not want to explore this one at all.
The Chairman. In other words, if he was on an exploring expedi-
tion to ffet information from the source, he got it?
Mr. Morgan. Yes. But on the other hand, I don't know conclu-
sively that he was. He talked about 2 or 3 other situations, also affect-
ing either beer or liquor matters, which I happen to have known about.
They were existing legitimate grievances on the part of either dis-
tributors or producers, affecting the Oregon Liquor Control Commis-
sion.
I told him that that was interesting, that I Imew about them, but
under the regulations of the liquor control commission, even if those
people wanted to participate in the campaign for the Governor, they
are forbidden to do so, and I certainly wasn't going to go and ask
them for a contribution.
So we just dropped it.
This matter was not the only thing he talked about, but this is what
I got in response to the question of "What is this I hear about $10,000
floating around that has something to do with the liquor commission?"
The CiTAinMAN. Do you have anything further, Mr. Morgan, that
you can think of ?
Mr. Morgan. No, sir.
The Chairman. Are there any other questions ?
Mr. Morgan, would you stand aside a moment.
Mr, Spear, come forward, please.
niPROPER ACTIVITIES IN THE LABOR FIELD 335
(Members present at this point: The chairman, Senators Mc-
Namara, Goldwater, and Mundt.)
The Chairman. Will you be sworn, Mr. Spear ?
You do solemnly swear that the evidence you shall (^ive before this
Senate Select Committee shall be the truth, the whole truth, and noth-
ing but the truth, so help you God ?
Mr. Spear. Yes, sir.
TESTIMONY OF MANTON J. SPEAR
The Chairman. State your name, your place of residence, and busi-
ness or occupation.
Mr. Si'EAR. Manton J. Spear. I live at 4373 Northeast Wistaria
Drive, Portland, Ore^. I am a beer distributor.
The Chairman. You have elected to appear without counsel?
Mr. Spear. Yes, sir.
The Chairman. Are you under subpena ?
Mr. Spear. Yes, sir.
The Chairman. You are not a volunteer ?
Mr. Speak. I was ^iven no opportunity to volunteer. I was sub-
penaed.
The Chairman. Proceed, Mr. Counsel.
Mr. Kennedy. You are in the beer distributorship business now?
Mr. Spear. Yes, sir.
Mr. Kennedy. How long have you been in the liquor business or
beer business ?
Have you been in the liquor business at all ?
Mr. Spear. I have been an employee of a firm which was in the
liquor business as contrasted to the beer business.
Mr. Kennedy. What company was that ?
Mr. Spear. That was the K. & L. Beverage Co. in Seattle, Wash.
Mr. Kennedy. A^Hien were you with that company ?
Mr. Spear. I went to work for that company at the time I was dis-
charged from the Army in 1946.
Mr. Kennedy. And vou worked there for how long?
Mr. Spear. Until 1949.
Mr. Kennedy. That is the K. & L. Distributors, in Seattle?
Mr. Spear. The firm that I worked for was the K. & L. Beverage
Co., a part of the K. & L. Distributors.
Mr. Kennedy. Who were the officers in that business?
Mr. Spear. Mr. Irving J. Levine, Dr. Grinstein, Dave Beck, Jr.,
and myself.
Mr. Kennedy. Dave Beck, Jr. ?
Mr. Spear. Yes, sir.
Mr. Kennedy. Is Dave Beck, Jr., the son of Dave Beck who is in-
ternational president of the teamsters?
Mr. Spear. Yes, sir.
The Chairman. Do you know whether he is in this country or is
he abroad with his father ?
Mr. Spear. I do not know, sir.
Mr. Kennedy. Do you know who the officers of that company are
now, the K. & L. Distributors ?
Mr. Spear. No, sir, I do not.
336 IMPROPER ACTR'ITIES IN THE LABOR FIELD
Mr. Kennedy, The information we have from Dunn & Brad-
street, Mr. Chairman, is that the officers now are Irving J. Levine,
president; Mrs. Dave I^eck, vice president; Sally M. Levine, second
vice president; Stanley M. Levine, secretary-treasurer.
So you have known Mr. Dave Beck for how long a period of time?
Mr. Spear. Mr. Kennedy, I was acquainted with Mr. Beck's son
since the time that I went to work for the K. & L. Beverage Co., and
I met Mr. Dave Beck, Sr., occasionally during the period of time of
March 19-16 until about June of 1949.
Mr. Kennedy. You were here when Mr. Morgan described a lunch-
eon that he had with you out at Portland, Oreg. ?
Mr. Spear. Yes, sir.
Mr. Kennedy. Would you tell us from what source was to come
this $10,000 that you M-ere planning, or possibly planning, to make
available to the Democratic candidate for governor, what source that
money was coming from ?
Mr. Spear. There was no $10,000. There was no source for that
money.
Mr. Kennedy. Was the $10,000 ever mentioned ?
Mr. Spear. 1 am not positive that $10,000 was mentioned. The en-
tire situation was hypothetical, as far as I was concerned. I made no
direct offer, and intended no such thing.
Mr. Kennedy. What had you done originally about this that got
this information to the governor? You had been talking about it
before, had you ?
Mr. Spear. Mr. Kennedy, the situation developed as a result of con-
versations with Mr, Jim DeShazor in connection with the small busi-
ness development group, a semipolitical organization. Early in the
campaign, Mr. DeShazor had invited me to participate and discuss
with him what activities the group should take inasmuch as I had
been interested and active several years before,
Mr. Holmes was invited. He was then senator. He had been nom-
inated for governor. He was invited to appear or to be with the group
that was conducting the small-business men's development, which was
on a Saturday, at which time the need for funds was definitely pointed
out.
I suggested that since I was not able to give much time to the work
of the small business developments committee, I would give some
funds — mine, my family's — to the development committee, which, in-
cidentally, I did, and said that possibly I could get some assistance or
help through friends.
Mr. Kennedy. Did you mention $10,000 at that time ?
Mr. Spear. No, sir; I don't believe I mentioned $10,000 at that time
or any time.
Mr. Kennedy. Do you know how Governor, then Senator, Holmes
happened to mention that figure to Mr. Morgan ?
Mr. Spear. No, sir ; I don't.
Mr. Kennedy. You do not have any explanation of that ?
Mr, Spear. No, sir.
Mr. Kennedy. Did you mention the $10,000 later at this luncheon ?
Mr. Spear. I don't recall, Mr. Kennedy, that I ever mentioned that
sum of money.
Mr. Kennedy. So Mr. Howard Morgan's testimony in that is not
correct ; is that right ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 337
Mr. Spear. I didn't say Mr. Morgan's testimony is not correct. As
Mr. Morgan pointed out, the entire thing took place 6 months ago. To
the best of my belief and knowledge, I did not mention any sum of
money specifically.
Mr. Kennedy. You can remember 6 months ago. He remembered
about the $10,000. He remembered that specifically. He remembered
that the now Governor had mentioned the fact that there was $10,000
available. Did you mention $10,000 prior to that time ?
Mr. Spear. No, sir.
Mr. Kennedy. Did you mention it at the luncheon ?
Mr. Spear. As far as I can remember, I did not.
Mr. Kennedy. Do you not think it is peculiar that Mr. Howard
Morgan heard that fi-om now Governor Holmes and also remembered
your mentioning the figure at the luncheon ?
Mr. Spear. No, sir ; I don't think it is peculiar.
Mr. Kennedy. '\\^ere do you think the figure came from, then?
Mr. Spear. I haven't the slightest idea, Mr. Kennedy.
Mr. Kennedy. Go ahead. Explain.
Mr. Spear. About what ?
Mr. Kennedy. What happened then ? You mentioned some amount
of money that was available, did you? Did you get it from friends?
Mr. Spear. I did not mention any amount of money.
Mr. Kennedy. Did you say you would get some more money from
friends ?
Mr. Spear. No, sir: I said that I would try. I thought there was
need for the money. But I made no definite commitment at that time
or any other time.
Mr. Kennedy. Then what happened ? What occurred ?
Mr. Spear. In the course of conversations with Mr. DeShazor —
at the time Mr. Holmes was present — I suggested that the small busi-
ness developments committee had never been interested in State politi-
cal affairs.
Mr. Kennedy. At this time, you were a registered Republican?
Mr. Spear. Yes, sir.
Mr. Kennedy. And your wife is also a registered Republican ?
Mr. Spear. Yes, sir.
Mr. Kennedy, Go ahead.
Mr. Spear. I still am.
Mr. Kennedy. Go ahead.
Mr. Spear. That the affairs of the committee w^ere best served, I
felt, by continuing the work at national level. I pointed out the com-
mittee had been successful previously, in the campaign of Senator Neu-
berger. in wliich I had a very small part, and I felt that the
issues involved in tlie campaign between the Secretary of Interior
McKay and Senator Morse were much more important; that I had only
personal interests in the State race. The situation was quite confused.
I had very little confidence, actually, that the Republican Party in
the State of Oregon would ever be l)eaten, and felt tliat Senator Morse
stood for issues that appealed to me and that the committee should
support him.
Mr. Kennedy. Were you contacted by Mr. Morgan, ultimately?
Mr. Spear. Yes, sir,
Mr, Kennedy. You had a conversation with him at lunch ?
338 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Spear. Yes, sir.
jNIr. Kennedy. Will you relate that conversation ?
Mr. Spear. Well, Mr. Kennedy, to the best of my ability, I will do it
again. I thought we went over that.
Mr. Kennedy. I did not understand that that was the conversation.
Did you mention to him anything about the teamsters wanting an
official on the liquor commission ?
Mr. Spear, I said that I believed that it was common knowledge
since about 1954 that somewhere along the line the teamsters had hopes
of working with the then Governor Patterson to gain for themselves a
man on the commission, and that it was more or less an open rumor
that such — rather, an oj^en secret — that such had been the case, and was
reasonably well known in the industry.
Mr. Kennedy. What was the reason that they wanted to gain con-
trol of the liquor commission ?
Mr. Spear. Well, that, again, will be my guess, Mr. Kennedy.
Mr. Kennedy. What reason did you give Mr. Morgan ?
I will rephrase the question. What reason did you give Mr. Morgan
as to why they wanted to gain control of the liquor commission ?
Mr. Spear. To have control of the liquor con:imission poses many
advantages.
Mr. Kennedy. Yes?
Mr. Spear. Certainly I can think of many.
Mr. Kennedy. What did you tell INIr. ]Morgan about it?
Mr. Spear. I mentioned to Mr. Morgan that the commission would
be in position to buy merchandise from sources that were friendly and
advantngeous.
Mr. Kennedy. Friendly to whom ?
Mr. Spear. Friendly to the commission, the people that were doing
the buying.
Mr. Kennedy. Let me see if I can relate this. Did you say that
there was a laro-e sum of money available from the teamsters?
Mr. St'ear. Xo, sir ; I don't loelieve that I did make that statement.
Mr. Kennedy. Well, what did you say about money from the
teamsters being available ?
Mr. Spear. I did not say that money was available from the
teamsters.
Mr. Kennedy. Then Mr. Morgan is not correct in his testimony?
He testified before this committee that he asked you what about this
money that is available, he said it is a $10,000 fi;aTn"e, and you then
explained that "I hear that this $10,000 can be received or gotten from
the teamsters." And then he said to vou "For what reason would
they want to give $10,000 ?"
Mr. SpearT That is approximately what was said, but you have
failed to remember, Mr. Kennedy, that I told you initially there was
no $10,000, that I had no source of any connection with the people
that you refer to as the teamsters, and that the entire thing was a
hypothetical situation.
" The Chairman. Let us get this straight.
Mr. Spear. Very well, sir.
The Chairman. Let us forget about $10,000.
Mr. Spear. Right.
The Chairman. You did talk about a source of money that is avail-
able?
niPROPER ACTIVITIES IN THE LABOR FIELD 339
Mr. Spkar. Not specifically.
The CiiAimrAN. Not specifically ?
Mr. SrEAR. No, sir.
The CirAiiniAX. I thono-ht that was the subject. Yoii had gotten
word to the Governor that there was some money aAailable.
Mr. Srp:AR. AVhat I said, Senator, was that at the time of the meet-
ing of the small-business men's committee, that I would see if there
were friends who would be willing to help.
The Chairman. All right. You were talking about money.
Mr. Spear. Yes, sir.
The CHAiR:\rAN. You were talking about money for this candidate?
Mr. Spear. Pardon, sir ?
The Chairman. You were talking about money for this candidate.
Mr. Holmes, the candidate for governor ?
Mr, Spear. No, sir. The discussion that I had was in reference to
the small-business men's committee.
The Chairman. I am talking about when you w^ere talking at lunch
with Mr. Morgan.
Mr. Spear. Yes, sir.
The Shairman. You were talking about money ?
Mr. Spear. Yes, sir.
The Chairman. You were talking about money for this candidate
for governor?
Mr. Spear. Yes, sir.
The Chairman. And you were talking about the source of it being
from the teamsters ?
Mr, Spear. No, sir.
The Chairman. No?
Mr. Spear. No, sir.
The Chairman. What source did you tell him it was ?
Mr. Spear, I had said it was some friends. I was much amazed
when Mr. Morgan mentioned the names of Mr. Beck and Mr. Brewster.
I haven't seen Mr. Beck to speak to him in over 9 years. I have never
met Mr. Brewster.
The Chairman. I have some friends I have not seen for 9 years.
That does not mean much. What was the source of money you were
talking to him about ?
Mr. Spear. There was no source of money. I had no way in the
world
The Chairman. How did it come up about getting a teamster of-
ficial or union man on this board and the advantage of it ?
Mr. Spear. Sir, were discussing a hypothetical situation.
The Chairman. It w^as not very hypothetical if they needed money,
was it? That was not hypothetical in a campaign, for a candidate to
need money. That is real, not hypothetical.
Mr. Spear. Well, certainly. If anyone needs money it is pretty
real.
The Chairman. That is right. And that is what you were talking
about.
Mr. Spear. Yes, sir.
The Chairman. That was the purpose of the meeting.
Mr. Spear. No, sir ; I don't say that is the purpose of the meeting.
340 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Mr. Morgan said the purpose of the meeting was
to find out the source of that $10,000. He called you up and made the
engagement.
Mr. Spear. Yes, sir ; he did.
The Chairman. It was in response to information that had gotten
to the candidate for governor, whose campaign he was managing.
Mr. Spear. I have no idea of knowing where the sum of $10,000 ever
came into the conversation. If that sum were mentioned
The Chairman. Let us forget about the $10,000, and just call it
money, whether it is $10,000 or $1,000 or $5,000. The point I am try-
ing to make is that there was a discussion about money for the
campaign.
Mr. Spear. Yes, sir.
The Chairman. And you were the one that was supposed know the
source of the money that would be available, were you not ?
Mr. Spear. It turns out that I was given credit for a situation over
which I had no control.
The Chairman. I am not saying that you had control over it. Were
you the one that was supposed to know the source of the money that
was available ?
Mr. Spear. In the minds, evidently, of some people, that is true. It
isn't a fact.
The Chairman. Was it in your mind ?
Mr. Spear. No, sir, at no time.
The Chairman. In your conversations with Mr. Morgan, did you
give him anything that would leave him that impression ?
Mr. Spear. It is entirely possible that I said something that would
give Mr. Morgan the impression that I could raise some money.
The Chairman. That is the reason he asked why they wanted a
teamster or teamster official on that commission ; is it not ?
Mr. Spear. Sir, the money that I had intended or had hoped to be
able to get in no way stemmed from any association or connection with
anyone in organized labor.
The Chairman. Where did you intend to get it ?
Mr. Spear. I have a number of friends in the business world.
The Chairman. Some of them teamster officials ?
Mr. Spear. I hope I have friends among all classes of people.
The Chairman. But you had in mind, if you were talking about the
money, the source. I do not know. Mr. Morgan says you told him the
source of it was the teamsters, the teamster officials and the unions.
Did you say that or not ?
Mr. Spear. I don't recall that I said that at all.
The Chairman. Would you say you did not say it? Let us get
down to it one way or another. You are the one that had the source
in mind.
Mr. Spear. No, sir ; I did not have the source.
The Chairman. Well, who did ?
Mr. Spear. I am sure I don't know, sir.
Senator Mundt. You had contacted the Governor about this matter
through Mr. DeShazor, had you not ?
Mr. Spear. Contacted the Governor about that ? No, sir.
Senator Mundt. You had contacted Mr. DeShazor about it?
Mr. Spear. No, sir.
IMPROPER ACTIVITIES IN THE LABOR FIELD 341
Senator Mundt. Do you know Mr. DeShazor ?
Mr. Spear. Yes, sir, quite well.
Senator Mundt. Did you ever talk to him about the money ?
Mr. Spear. Yes, sir.
Senator Mundt. "What did you say to him ?
Mr. Spear. Mr. DeShazor had invited me to participate in the
small business development group, and I told him that I would be
willing to contribute to that group. I further told him that I had
friends who might be willing to give money.
The Chairman. Would you mind telling who those friends are if
it was not the teamster folks ?
Mr. Spear. That was no one specially, sir.
The Chairman. You had no one in mind ?
Mr. Spear. That is absolutely right. I had no one in mind.
The Chairman. You had no one in mind that you could get money
from?
Mr. Spear. That is right, sir.
The Chairman. You got down to the point of discussing the ad-
vantage of having a teamster on this commission ?
Mr. Spear. The advantages of having a teamster on the commis-
sion ?
The Chairman. Yes. You mentioned it awhile ago.
Mr. Speak. Senator, I am awfully sorry. You and I are at cross
purposes.
The Chairman. I am a little tired. But I think I heard you say
awhile ago something about the advantages. There are many advan-
tages, you said, in having what ?
Mr. Spear. In having a man that you could control on the liquor
commission or any other commission.
The Chairman. A liquor commission ?
Mr. Spear. Yes, sir.
The Chairman. You were talking about that ?
Mr. Spear. Yes, sir.
The Chairman. And you talked about it that day with Mr. Mor-
gan?
Mr. Spear. That is right.
The Chairman. How did you come to be talking about a man you
could control on the liquor commission ?
Mr. Spear. I made no attempts to say I could control a man on the
liquor commission.
The Chairman. I did not say you could control him. I said you
were talking about a control.
Mr. Spear. That was a hypothetical situation.
The Chairman. All riglit. What are the advantages that you
thought about, and to whom did you expect the advantage to flow,
about having some man on the liquor commission they could control?
Mr. Spear. I didn't expect them to flow to anyone, because I had
no one specifically in mind.
The Chairman. What are the advantages that you can think of?
You said awhile *ago there were several. What are some of them?
Mr. Spear. It is my opinion that favoring certain brands of mer-
chandise would result in certain advantages pecuniarily to people on
the commission.
342 IMPROPER ACTIVITIES EST THE LABOR FIELD
The Chairman. In other words, if the commission wanted to be dis-
honest, if they wanted to be corrupt, if they favored certain interests,
it would b3 of creat interest to them financiallv ?
Mr. Spear. They have had several ^rand jury investigations on that
subject.
The Chairman. I did not ask you about grand juries.
Tliat is what you were implying?
Mr. Spear. Yes, sir.
The Chairman. Of course, I guess anybody in public office, if they
want to be crooked, can get some advantage by favoring some peo-
ple. But let us get back. I am going to treat everyone alike, when
they come up here and there is conflict in their testimony when they
are supposed to know and answer facts.
I want to know whether the statement of Mr. Morgan is true, that
you identified the teamsters or teamster officials with respect to the
source of his money. Is that true or false ?
Mr. Spear. Senator, if I mentioned the names of Mr. Beck and Mr.
Brewster, it was not in connection with the source of the funds.
The Chairman. Why would you mention the names? In connec-
tion with what else?
Mr. Spear. In a hypothetical situation where a teamster group
would have certain advantages, or any group.
The Chairman. That is the whole thing, that they wanted to get
a man on that commission so they could get an advantage?
Mr. Spear. I have no way of knowing that, sir.
The Chairman. If you mentioned them, that is what you were talk-
ing about, was it not ?
Mr. Spear. Certainly with no — no, sir. You are putting words in
my mouth.
The Chairman. I do not want to. I am trying to get some out.
I want to know whether you did or did not.
Mr. Spear. Senator, the discussion
The Chairman. I do not know where the truth is. I am simply
asking you, did you or did you not mention Beck and Brewster as a
source of that money, and talk about the advantages, why they would
need or desire a man on that commission ?
Mr. Spear. I am sure that I did not say it.
The Chairman. You say you did not ?
Mr. Spear. That Mr. Brewster or Mr. Beck would give me any
money to give to anyone.
The Chairman. That is not the question. I am talking about nam-
ing them as a possible source of the money. He did not say that you
said positively they would give the money. That is where you get
your hypothetical in there.
Mr. Spear. Well, yes, sir, because the entire conversation was on
that basis.
The Chairman. The entire conversation was on the basis that a
source of money might be available.
Senator Mundt. Mr. Chairman?
The Chairman. Senator Mundt.
Senator Mundt. You were in the room when Mr. Morgan testified,
were you not ?
Mr. Spear. Yes, sir ; I was. Senator Mundt.
IMPROPER ACTIVITIES IN THE LABOR FIELD 343
Senator Mundt. I want to know whether or not he was perjuring
himself
Mr. Spear. No, sir.
Senator Mundt. Just a minute. I want to know whether he was
perjuring himself when he said, voluntarily, that you told him a great
story about how the teamsters would be interested in the campaign,
in response to a direct question which he asked you, by reciting how
certain eastern distilleries might not be employing union labor when
the teamsters could club these distilleries into taking union men, by
refusing to buy their liquor, in the monopoly-controlled liquor situa-
tion in Oregon. Did you describe such a set of circumstances to
Commissioner Morgan?
Mr. Spear. Would you repeat the last part ?
Senator Mundt. Did you or did you not describe that set of circum-
stances to Commissioner Morgan, as he said you told him ?
Mr. Spear. Yes; I believe that was pointed out as one of the ad-
vantages that would accrue.
Senator Mundt. Mr. Morgan did not just come here and invent
that conversation on your part, but you said that ?
Mr. Spear. Yes, sir. Certainly.
Senator Mundt. You said that because he had asked you why the
teamsters would be interested in contributing to the campaign of
Senator Holmes, and you gave that answer in response to that ques-
tion; did you not?
Mr. Spear. Yes, sir. That was the answer, if Mr. Morgan asked
me whether or not
Sena'^or Mundt. He said he asked you, and you say now that you
answered him.
Mr. Spear. Yes, sir.
Senator Mundt. It must follow, then, like the night follows day,
that prior to that you had told him that the source of your money
was going to be the teamsters. I do not see why you equivocate on
that. It must have been that you told him. Whether you said you
could raise it or not is not the point. He did not say you said you
could raise it. But you must have told him,
I understand that the teamsters will pay a substantial sum to this campaign
provided they can put one of their officials on the liquor control commission.
Did you tell him that?
Mr. Spear. I told him that was my understanding, that previously
in the Patterson campaign, the teamsters had participated in the
campaign with the idea that they were to have a man on the com-
mission.
Senator Mundt. I am asking the question : Did you tell him it was
your understanding that they would now contribute a substantial sum
of money to Senator Holmes' campaign if they could name one of
their officials on the liquor commission? Did you tell him that?
Mr. Spear. Senator Mundt, I don't recall.
Senator Mundt. You were there for the purpose of discussing the
campaigning then before you ?
Mr. Spear. Yes ; that is right.
Senator Mundt. You were there to discuss the possibilities of rais-
ing money for Senator Holmes ? That is the reason Mr. INIorgan talked
to you?
344 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Spear. Yes, sir.
Senator Mundt. So I do not see why you hesitate and dodge. It
seems quite obvious in view of everything else you have said and what
he has said, that you must have told him that you understood from
some source or from general information or somewhere that the
teamsters would make a contribution to the campaign of Senator
Holmes, provided he would name a teamster official on the liquor
commission.
Thereupon, Mr. Morgan said, "Why would they want an official on
the liquor commission" 'i And then you recited what conceivably could
be a reason. Is that not exactly what happened ?
Mr. Spear. Yes, sir.
Senator Mundt. Why did you not tell us, or tell the chairman, that?
Mr. Spear. I am very sorry. It was not presented to me that way.
Senator Mundt. It sounded that way to me.
Mr. Ivennedy. In that connection, did you state to Mr. Morgan that
the teamsters union might be interested in obtaining a teamster offi-
cial or anyone who would be acceptable to the teamsters union, a place
for them on the liquor commission 'i
Did you mention that subject to Mr. Morgan ?
Mr. Spear. Yes, sir.
Mr. Kennedy. Well, when our investigators interviewed you the
first time, you denied having that kind of a conversation at all. Do
you remember that ?
Mr. Spear. I am not exactly positive. It is entirely possible. If
their records indicate that, it is probably so.
Mr. KJENNEDY. You denied havmg that conversation.
Mr. Spear. Yes, sir.
The Chairman. Who did the teamsters back ?
Mr. Spear. I don't know, sir.
The Chairman. You do not know ?
Mr. Spear. No, sir.
The Chairman. Do you have any information about that. Counsel ?
Mr. Ivennedy. Mr. Chairman, the teamsters began by backing
Holmes and shortly after this conversation took place, a meeting was
held inviting all of the candidates they were backing and the only
candidate that was left out was Mr. Holmes.
They invited his opponent to the meeting. Then, when they dis-
cussed it in the teamster paper the next day, they led with a headline
that Mr. Holmes' opponent was the one that addressed the meeting,
despite the fact that Senator Morse was there and I believe Senator
Neuberger and several others.
The Chairman. That statement will not be considered as evidence,
but we will probably tie it in later. Just at this point I thought maybe
the witness knew. You do not ?
Mr. Spear, No, sir.
Senator Mundt. That leaves unanswered, Mr. Spear, only one ques-
tion of substance in my mind. That is, from what source did you get
your information to impart to Mr. Morgan as to the understanding
that the teamsters would be interested in this contribution and in this
appointment 'i
Mr. Spear. Senator Mundt, Mr. Holmes, or rather Mr. Morgan,
mentioned that as early as 1954, It was rather generally known tliat
IMPROPER ACTIVITIES EST THE LABOR FIELD 345
tile teamsters had been supporting the then Governor Patterson and
the supposition, the rumors, and the more or less open secret in the
industry, was that there was to be recognition of teamster effort by
some consideration on the liquor commission.
Senator Mundt. Well, you would not have any new information to
impart to ]\Ir. Morgan that he had not given you previously.
Mr. Spear. No, sir.
Senator Mundt. You say he told you that? He told us that you
told him that. He would not have to take you out and buy you a
lunch to tell you what he meant.
Mr. Spear. To keep the matter straight, Mr. Morgan did not buy
a lunch.
Senator Mundt. He could have bought it after he invited you to it,
but that is immaterial.
Mr. Spear. Mr. Morgan told you, sir, that I gave him no informa-
tion that he hadn't previously remembered, and I believe that you will
recall that.
Senator Mundt. Is that right? He told us that the information
you gave him was fantastic, and those are his exact words. He said
it was fantastic.
Mr. Spear. We are not talking about the same thing. Senator
Mundt.
Senator Mundt. We are talking about the same lunch ?
Mr. Spear. Yes.
Senator Mundt. Wliat were we talking about? I thought it was
the same thing.
Mr. Spear. No, sir.
Senator Mundt. What are you talking about ? I am talking about
the conversation at the lunch.
Mr. Spear. Yes, sir. You asked me, I believe, about the source of
funds, and I told you it was a rather open secret in the industry that
the teamsters had supported the then Governor Patterson and that
the reward for that support was rumored to have been consideration
on the liquor commission.
I believe Mr. Morgan told you that, and that he said, also, in sub-
stance, that I had told him nothing that he hadn't known.
Senator Mundt. Pie said that today ?
Mr. Spear. I believe he did, sir.
Senator Mundt. In this testimony ?
Mr. Spear. Yes, sir.
The Chairman. It was nothing he had not known about the team-
sters having supported Patterson. He already knew that.
Senator Mundt. Yes ; that part, of course.
Mr. Spear. Yes.
Senator Mundt. But he did not know anything about this hookup
with the eastern distilleries and all of that. That was news to him.
Mv. Spear. Senator Mundt, you see that was not anything that was
positive or definite.
Senator Mundt. That is something that you related to which was
news to him ?
Mr. Spear. That was one of the advantages. That is a possibility.
That is what could happen.
Senator Mundt. That is right.
Mr. Spear. Possibly and maybe.
346 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Mundt. That is ^A'llat you described as a possible reason
why the teamsters wanted to have their man there.
Mr. Spear. That is ris^ht.
Senator JNIundt. That was news to him '?
Mr. Spear. That is right. I believe it was ; I am not sure what Mr.
Morg'an said.
Senator Mundt. Did Mr. Morjran subsequently call you and tell you
that they were not g'oino: to io:nore this any further ?
Mr. Spear. Mr. Morgan told me at that very time that they were
not interested in making any commitments. As a matter of fact, he
prefaced our meetino- that there were no commitments of any kind to
bs made, that he was in no postion to make any commitments. He
may have subsequently told me that, too, but he made it quite clear at
the beginning of our conversation.
Senator Mitndt. Did he report back to you after his conversation
with Senator Holmes, in wliich Senator Holmes confirmed the fact
that he did not want to make a deal ?
Mr. Spear. Yes, sir.
Senator Mundt. He told you that ?
Mr. Spear. Yes, sir.
Senator Mundt. Did you go ahead then, on your own, to try to raise
any money ; or did you desist ?
Mr. Spear. I made good on the commitment that I had made to the
small-business men's groups, and that was the extent of the work that
I did.
Senator Mundt. Was that a group supporting Mr. Holmes ? Was
the small-business men's group a group supporting Mr. Holmes ?
Mr. Spear. They supported him to the extent that he was for the
major platforms that Senator Morse was working for, and many of
the appearances of the candidates were on the same platform.
S3nator Mundt. Does that add up to an affirmative answer to my
question 'i Did they support the candidacy of Senator Holmes ?
Mr. Spear. Yes, sir.
The Chairman. Are there any further questions ?
Thank you very much, Mr. Spear.
The committee will stand in recess until 10 a. m., Tuesday morning.
(Whereupon, at 5 : 45 p. m., the hearing in the above-entitled matter
was recessed to be reconvened at 10 a. m., Tuesday, March 5, 1957.)
(Members i)resent at the taking; of the recess were the chairman
and Senators Mundt and Gold water.)
APPENDIX
EXHIBITS
Exhibit No. 1
89330 O— 57— pt. 1 23 347
348
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 2
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 3
349
f 3Pi.opo.o,o sej ttie , >v «/... '•■'•y -. . i95o
On demand gfiaxbtte, ruihout grace i promite
to pay to the order of 7^^^"^^^^ ' "^^auffeurE. Unions Local w
Thlr.ty T.h.oi.ts.an'I .ii30»O.QO.aO). DOLLARS.
in Lawful Money oj the United States of America, of the present standard yalue, with interest thereon; m like
Lawful Money , at the rate ofthxeB per cent, per Annujtn from date until paid, for yalue received.
Interest to he paid ^^^\^^^^J and if not so paid, the nhole sum of both principal and interest to
become immediately due and cvttedMe at the option of the holder of this note. And in case suit or action is insti-
tuted to colled this !^ote or any portion thereof - promise and agree to pay in addition to the
coils and disbursements proridrd by statute
Dollars in like Lawful Money foT^Allorney's fees in said juit or action.
Due C^A. der.and ;9 ^,^ /
yfi Seattle, '.'ashlnrton ^^ • ^. -^^
No.
M*rDI>*«ALO MO
350
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 4
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IMPROPER ACTIVITIES IN THE LABOR FIELD 351
Exhibit No. 5
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352 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 5 — Continued
NAMF
AUONE.SS
CHANGE C*- AODnr-
tMPLOVtR
/1//L
.J J.4 S<j
S S NUMBER
•.^^/-
IFtXltR. PAID
NUMBER THNU
AMOUNT PAID
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FEB- 6^5
2 !J 0 1 7
5 0 10 5
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P j^ r LtOGfc'-* PCCORD LOCAL NO
IMPROPER ACTIVITIES IN THE LABOR FIELD 353
Exhibit No. 6
SAMUCl ■ BASMTT
JOHN OKI9NCSS
Bassctt. Gci8Ncsa s, Vance
Attorn tY8 at Law
SECOND AND CHC«RY
Seattle A
• TV»M|N V. CANCT
otoaac H oAvitt
February 5. 1957
Mr. Ab Ruhl , Secretary
Teamsters Union Local 69O
105 West Third Street
Spokane k, Wa3hin{Tton
Re:
My promissory note
Dear Ab:
'Richard Kllnge has delivered to me a bank check in the amount of
'521,")O0.0O in pay-ient of the balance due of principal and interest
on his promissory note to mo.
If Local 690 will accent this amount in full settlenent of the balance
now due the Union on my note, both orincipal and interest, I will acc-
ept Klinge's check and deliver to vou forthwith my check in the amount
of 021,000.00.
Please advise me at your earliest convenience.
Sincerely yours.
c.^.^:y
354 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 7
F«kry«ry fi, 1957
tk-* Smi Bass«tt
N*w WDTld LIf* Sullding
Second and CNrrry Str««ts
S«atfi» 4, WMhrngton
0««r Sant
Ragwdlne your l«tt«r of Fobruary 9th In nlilch you otato
that A%-. KMnga fa wltifng to aattia th# balanca on tho
nota «*»Ich waa loanad to you tor S2i«000, Including tho
Intaraat*
I a« calling a awating of tha Exacutlva Board of Local
No. fi90 for naKt Tuaaday night, Fabruary 12th at which
tiMa i wilt taka thia aiattar up with tha Board, aa t m
unabia to aiaka thIa daclafon by nyaalf*
I will iMnadtataiy notify you tha following day If thay •
aecapt tha 121,000 aa aattlaawnt In full. You will haar
fro« Ma by Thuraday, Fabruary 14th,
With baat wlahaa, I
AjR/hg
Vary truly youra,
A, 4, Ruhl, Sacratary
TEAI«TERS« UNION, LOCAL MO. 690
IMPROPER ACTIVITIES IN THE LABOR FIELD 355
Exhibit No. 8
r»bru%ry 1% 1957
VIA AH ^li
Mr. !>ani Ba«««tt
811 Nev/ tvorld Lift Bulldinf
S«cond and Ch«rry Straat
S«attl« 4, Waahtngton
Daar Saa>r
Again rafarring to your lattar •# Fabruary 5th, I took tha
•attar ragardlng your nota dua thU Local Union yp iwl th tha
Exacutlva Board laat night at our ragular mearing,
Thay have agraad, wa wi i I accapt a chack tor S2l,a)0, •^hlch
covars tha balanca dua on tha nota, plua tha Intaraat In
full; ao. If you will aand tha chack to a», I will forward
your nota MNM'kad, "Fald In Full".
Vary truly youra.
AJR/hg
A, 4, Ruhl, Sacratary
TEA*eTERS« UNION, LOCAL NO. 690
356
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 9
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IMPROPER ACTIVITIES IN THE LABOR FIELD 357
Exhibit No. 10
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358 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 11
\I \ I \ v^ 1 1 1 (, i
The Old NATioN\LB.\NKc»f 8poi<a!
Sl'OKAN! n \.SJI!N(.U'V
HECKS OErcS!-S KATE SEW BAL4NC
«*..NCE.o««.«=,^ MOV 25-53 52,160.79 +
33.75 _ NOV 27*^^ 52,1?7.04«
"g'er,-. DfC 1'53 52, 1? 4.79 •
2^^5.00+ nrrii'5'^ ^'"^■"'\88i
10.00+ nr'^1'^"'''' ' ^^^•'
'3.20 - '
THE LAST AMOUNT IN TMlB
COLUMN ;S YOUR BALANCE
VOUCHERS RETTURNED
IMPROPER ACTIVITIES IN THE LABOR FIELD 359
Exhibit No. 12
October 2A, 1955
A special meeting of the Board of Trustees of the Teamsters* Union
Temple Association was called to order at 8:00 P. M, Monday, October
2Ath.
The business to come before the Board was the matter of the loan
to Sam Sellinas which shall become due and payable on December 17th,
1955.
After considerable discussion, it was regularly moved by Vincent
Smith and seconded by Harry Brown that the Teamsters' Union Temple
Association will extend the loan to Mr. Sam Sellinas for another two
years, terms and conditions to be the same as shown by the note and
mortgage. Motion carried unanimously.
Present at the meeting were the following Trustees:
E. G. Johnson President
A. J, Ruhl Secretary-Treasurer
Vincent Smith
Harry F. Brown
George Pohlman
Thomas Casselberry
Mr. J. E. Whitney, the seventh member of the Board, was Absent
due to his being in Seattle, but he had concurred in the motion
proximable before leaving town. ^
This being the only matter to come before the Board, the meeting
adjourned at 9:15 P. M.
A, J, Ruhl, Secretary-Treasurer
AJR/hg
360 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 13
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. «•» ■> tr u ( •. . oi.r f. ,
IMPROPER ACTIVITIES IN THE LABOR FIELD 361
Exhibit No. 14
TEAMSTEhS' UNION TEI-TLL ASSOCIATION
Spokane - - - 'Vashlnptoi:
ASoUT.i ,-\nd LIABILITIHIS - December 31, 1955
assets:
Cash In Old Matlon^l lank of Snokene
Furniture and Fixtures at ■..' 105 Third Ave.
Chalra from Furniture "xchantce 5 li?9.1i
Connensntlng Tax on Chalrn '^•9.32
Furniture and V.'lndow Shades 332.99
Zlectrlc Sneaker System 144.20
Chairs from Con<?olldRted Frt. Lines. 590. IB
Canvas for Floor 214.30
Linoleum 3 21.13
Electric Squlnmert 1115.^3
.Electric Vater Heater 1??. '^5
Air Conlltlonlng Eciuliment -*2*1.55
Remodeling I'+e-J-. «6
39630.76
IJew Hoof
Public Address Systex.
Carpet & Pad
Desk
Linoleum
"^avenoort
Draoes
Furniture & Fixtures from Tor. ?'nlone:.
Water Heater
C«(roet
Fixtures
Pov.'er Lawn ?'ower
"ew Fo.jntnln >i rDll'=>t
■^esk
Trunk for 'lecord ooks
Rubber ! !p t
■^lectrlo ''eaters
Lpnl for Tpatioter'?' '-■ni:in "err. il-? nt
'..' 105 Tilrl Ave., .-ok'■>r^^^,
.eampters' "nlTn '"e"'.-)le nt
"o^iCf^p, '..'ash
InvintTr/ - Deceniiber 31. 1955
Preo.ili. Tn ?Trar.ce
Loan - •* 5 '- ' *
Loa". - ")'jil ey ',-
LOSS -^ror "l-'ear
L03-
LOS 5
LOS^
LOSS fro-! Sale
LOSS fron Yepr
LOSS fr^m ^ear
LOSS from ^-'ear
LOSS fr j; "fear
Loss from Year
LOSS fron Year
LOSS from Year
LOSS from Year
101=i.67
•^33.77
206.93
170.21
116.83
71.59
7^1.
450.
51.
.-'62.
.59
,00
,00
,67
154.95
50.00
ti4.9R
61 . 23
'err. 'l-?
'■'■«> h . .
'•■• lof
;lri Ave.
^oal
•0:
19-3
1945
~ Year 1946
fro;n Year
lear
^v-T- V
""eamxters '
'. , Attorney.
'lerations.
joeratlons.
Ooeratlons.
Dneratlons.
r*?^.
of Temnle at Pasco-
derations. . .
' e rat Ions. . .
1949 Jnerations. . ,
1950 Onerati ons. . .
1951 'Joeratlons. . .
195'-^ Operations. . .
1953 Ooeratlons. . .
1954 Operations..-.
•19^7.
LOSS from Year 1955 Ooeratlons.
,3 13»44.84
'^950. 00
Uo^2'^.95
1^^7.12
"44.27
1950.00
17000.00
5'?. 79
229.93
673.50
1036.12
2007.9?
59'5.82
?5^5.70
;>737.00
2870.24
1681.64
5^84.97
1526.49
381.56
929.84
Total Assets.
•S144839.21
362 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 15
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IMPROPER ACTIVITIES IN THE LABOR FIELD 363
Exhibit No. 15 — Continued
1
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DOLLARS
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Ut.ited A r Utc«, Inc. /
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-24
364
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 15 — Continued
SSSSSSSStSSSSSS
IMPROPER ACTIVITIES IN THE LABOR FIELD 365
Exhibit No. 15 — Continued
^00 r-
OCD^C9^^<•C09>0^— tftr*
10
• «Mr« 10 o >£ NO
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366 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 16
K»OV ALL ua BI THESE F&ESiSTS, that I, ZJbosuis Y, MklOB*/, Of tta*
Oit; aad C<3nm\;/ of Spoksna, Stat* of Waahio^on, la oonslderatlon of Ton
UO} Doilare and other raltuible ooxwldoratioa* woeipt of ■:&.'. -\ Is bersby
•oknowl&'iSttd, do hereby &3!>li|n to J. P« UoLAUQHLIS, Qi 'JOb .ir^v &veme,
Sei^ttleii 7ashln/?toa, all jny rigbt title ead Intereat in that cartaln ooadltloaal
sal-^a contract A&t'^.i ".'nwber 6, 1949 by and batwaaa U££7 L. BAIZHSB and
raC«AS .%. lULOHSX. -.a Vandora, and KAEL W. PHTEBSOi, a» purcaaaer, said ooatraat
being filed with the offloe of the Cooaty iodltor of Spoicane County, taahlo^OB
balaff DoowBont rm-ober 921826 A, anl said oontpa'ct bolnj In escrow In the
TiTaehlngton Trust Conroaay, in thB 31ty and Ooanty of rpokane, St&ta of Iteahin^oa.
In ,Ii'.''PSE im-^WOr I hare hereunto sat ms hand and seal la tha
Olty of 3p«\caae, State Of ;;ra8hlQ«ton on this 2^;th >!&;»■ of irarch, 1950.
/ ^^^Z'fi'T^PC^^X) ^ /yT^^Ox-*^
SfAtS OF VASHITOTOf )
Coumgr of Spokaaa }
I, tne anderslgned, a Sotary Fublic In imi for tha alort naaed
CountjT and State, do hereby certify that on this 29th day of Maroh, 1900
paraonally appeared before lae Xhosias £. italoney, to me txicran to be the
Individual deacrlbed la and who aeeatad the vlthln inatruzaent, and aokBO»-
ledged that he signed and sealed the aaae aa hla treee and roloatar/ aot
and dead, for the aaea and purpoaea therein mentioned.
OlT«a nndr>r ajr hand and official j^l the day and year }.aat
a¥oTe vrlttaa*
y. /inx^jifJ f. j/:?.Ax.
u,^
Bot&ry PttbHc In and for tha State
of Qashingtott, residing at Spekaaa*
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 17
367
57ir.2«»t.2nJ.
Spolaina.Vath.
!:r JlD ;i\cln«.
lA24.3.».2nd.
Port land. Or-,- on.
f^;^
/ /
Ciy^u^^.^ — ^
/(
K
\
PrloBl J] «,
Wsll bore I tti. \t!.zV. at 5Doitane and I really had to shoot both Sarrolle
and whan I connaotod Stan Tarry xith McOort that did it John talked to Oroa-
by for an hour and Jin If that kid lata John Swaaney down it i« not rtght and
it ixita you and I riijht in the siddle. About Two weeke from now I will jot the
Okay frorn r.woonay wVion I pick hln and Frank Browatar at the Airport hare Sat-
urday I -ill hava that Malloy take hin around to all the Big Freight Uo«» and
and Bakarloe and have your aan neet the zisn so thay oaji 50 homa and talk about
aaetlng the next Oiotriot Attomey.Mow John warts him to ^o rl-ht in to Torry
Shiuk and h'* can nentlona Johne name and in to Newbor^ar ani that rfooan 3on-
^^rosenftn and if you ^at that office opened I protd.so you that I will tr^t eono
Financial Aid for the Ud and ;at hlo elected. Tvorybody you talk to Jio aaya
tha kid la not a^reaalra enough and if ha dont go out and work he will got
baal.Jobn Sweanay aa/e the sane thing you know ae well aa I know the kid aho-
uli hare follovad that 3w«eney appointaent now It juat nakea four times as nu-
eh work to ret hla back in this plctura.I will be down their the ff/p/i I7th and
will atay rl-ht their wit you ae a trouble shooter but I dont want no suit*
Jurt a plain room with a shower as 1 want tha TeeusBters to toail out about Tea
Thmaand of them posters that your man showed me the kids faidly.And I will /^
stay their while they are being maLlled.Khat about the Mayor he told John pol-
JiB
nt blank he wanted langlay.So ffif^ you got a lot of work to do and still be
Teiy very oarefUl that no iMman finds out that you are working i"or this kid
as according to 3«eeiiBy eooething come jp the last few days when this kid ran
against McCort the laet Urns. I say it again plaaaa have that kid follow thsa
other Seaocrats around whether the Central Ubor Oouncil indorsed H3ort or
not if he has the ri:;ht man with sons 3UTS that will take hia to them nestin-
gs they have to hear hia especially if Mallogr and his brothers will take hia
368 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 17 — Continued
2
around when I jot dovm thair as this is no Bull them tolloy Brothers have got
a lot of 3ute BoUeve ne and they can get plenty of Votes for Langley,Jijn dont 1»-
ave John Sweeney down I dont want John to tell ae that he juet got a phone call tTm
om ?ort;land and that langlay has not been arcwnd to any of Nawber^ers talks or otb»
er Demoorats^By now I hope you have your conBiltt«e set and ra ring to go.You know a
few spots whore Money can be picked up and get bod» of them Bumper Strips made unt-
il I get their and contact that fellow Brady anyone can call Sweeney at the Teamsters
in Seattle to verify fj/l^ anything I have said In this letter.Find out for ma if Oro-
sby contacted the ^!ayor today.United States Senator Warren Vagixison Speaks at a|2^«00 ,
Democratic Dinner here if he goes to Portland I will show yoM how to get that kid
some publicity as Sweeney had lunch with Maggie in Seattle today and I can talk to
^^ag^U8on so ftnd out if Magnnuson is going to Portland to talk for Ne^berger throoh
Sweetland and he is another friend of Sweeneye emd Uingley fekould go right in to Mjs
ani when Sweeney finds out that langley ie seeing these fellows it will make J^m
proud of you, /ohn told me again that Art Pratt is Stan Terrys nan nomatter what any
one else. I guess yew know after this election is over I'x John is going vv t'-ivight-
en Mr Stan Terry man he is bitter against that guy. f some of them fellows that Ia-
ngley contacts and uses Johns naaa it will make John happy as he then knows the foll-
ow is working. When I told "^ohn that langley is working hard and that he has his eaap-
aign quarters down town he Just laughed and said who are you kiddlng.So dont fail John
If
Jim thats all I ask.And jtff you do what I su^eeted in the rooB he vd.ll win if not
your beat. Sweeney and Orosby are now In Sun Valley with the big Boss and Crosby wont
be back until Monday to work so get busy on that Hajjen so when Orosby comes baolc he
has done some work.If everything is not working right please let me know as J^m bl-
ew h p top last nisjht ho was on th© phone for over and hou».He told me his phone Bill
is around $7to J8 hundred a month that is a fair phone bill but man ho is a Tiger wbea
he gets hot.l^ow you call^sae Saturday nl<jht If you want to some <f9«T here and see hla*
he gets hot.l^ow yoa call^sae Saturday nl<jht If j
IMPROPER ACTIVITIES IN THE LABOR FIELD 369
Exhibit No. 17 — Continued
Wen-i 0-6-54.
Friond Jim,
John Sw9«noy and Olyde Crosby are now at Sun Valloy and will be
together until Saturday. By the time Crosby comee baok I hope to lod that
you are In full swing with that kid. I dont want Crosby to call Sweeney u?
and say how can we help langley we wont help himself . I did not see Jinny wh-
ile I was in Seattle I might have got in an argument with him in regards to
that all night Poker Jams that is still ^oing in the Caledonia Hotel and he
let QS 50 in to hook and ;et fdlded up in one night. John called rna last ni-
for 3e to at the Airport to pick him and Mr Brewster Saturday which I will.
And John did ask mo if iangley was covering all the Churches in Hiltonmah
county and I told him I would contact you in regards to it.Wth that office
down X/^y town Jim yew can volunteer workers especially women that can ha-
nd them posters to the Priests and whatever vou have to do.YcM know ns well
as I do that your Son In law and Jalocurohio will want something as t..ay are
Dead irtth that Police Dept.in Seattle I learned that both CarroU and Call-
ahan are hot.So I think if i-Urray oomea down to see ywa this w«ek end he sho-
uld have Frank bring down a lot of them posters with Langleys name on it and
I will have the >:alloy Brothers put them up all over, You cant let no car with
a King County license on it that ie amnution for KcOort.I ac Toing to Dinner to-
night with one of the owners of the race track he is f^ 3reak and hie nsTse is
Cteopje K'Anos and he and another iraok had this town for thirty years the fi^
other Jreeks natae is Sam ^ollinas.I understand that their are a lot of 3roeks
in Portland and they have money and they may help the cause with some loot.
And I -ill see the Oreek Prieet up hare and soe if the Oresk Churches /X//
In Portland -111 help. As soon as them posters you showed rae in Room 5l6 se-
nd a couple to John Sweeney. Seotary-Treasuer. Western Confe ranee .Teamsters Bu-
ilding 552. Denny Way Seattle Washington.And ask him if he will have Crosby
370 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 17 — Continued
mail tueui to all the >«muers and I will follow it up 2b I will talk to aw«oney about
it whan he ia over here with ae for Two daya and I will Bteaa ^-.irr up pretty jood.Sut
you ana Fred get on the 3b11 I will do qy part send then Fostere to ^roaby and Jio Ka-
Sen.Sweoney will be back in Seattle Konday and I an goliig to work on hio to fly down
to Portland and help that Kid.lfhen Joo and I first went up to hii house I told hia
that you would buy hlB house If Langltf ;ot elected i./f it didont work in bo good,
°ut after -o had dt"ner I kept ri^ht after hia an'i "V>«n I told hi- «>«<t Stan Terry
ia pushing you around and that he had KoCort he cancelled hie trip to lAancouvor.B.O.
and boy h«- was a hot Iriahnan and he blew hia top when he got Oroeby on t*-e phone
he didont care wrat tiis Central labor Council did he wanted the TeamstorB to endorse
langlay and not go halt way about it. So pleaee »end theo PootorB Inediatoly to Sw-
eeney, Orosby and Hasen.Calocurohio has a printer in Seattle that ho ,7,atD that stuff
at Coat 3o .^et on the 3all.l«Jt ue know by Friday n ^ht what you have done so 1 can />(-
f-f. toll Sweeney .Xaep oe posted and I will get soma Jrn^ks naeo in ;ortland that will
help with sonse money. 3e seefcbg you.3et Uingley on the Ball, I want to know by Friday
ni~ht if he has contacted Shruk.Brady or Swoetland if not X will have Sweeney call
Sweetland.3e seeing you.
Ton.
Ton Atloney.
57II.Saet.2nd.
Spokane. Wash.
Mr Jim Elkin«.
I'>2A.S.W.2nd.
Portland .Oregon.
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 18
371
m
3.' L4Ji^'
1^
ii-
oft. ->
9 11'^
372
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 19
MME,
600DS
ARE
•OUOHT
AND
SOLO
THROUSH
THE
Classified
Business
Wrectof]f
THAN BY
Any Other
BUCHANAN
CHEVROLET * OMiisik*
»r4I.Wan • Rl 7.7134^ ttt DmalV
onEarfli
Maland Robt B (Bonnie Jl slsmn Shelley Mtrs bW
214 34th av
Malaney Colleen M telcg opr Pac Tel rE»03 Nora av
Malano Robt mgr Alcorn Bob Auto Sales
Malawitz J A rN206 Washington
Malberg Jake rN220 Howard
' John hN4 1 27 Martin
Malby Don studl Kinman Business Univ r Elk Wash
" Jas T (Lillie) hE2909 Hartson av
" John appr A&A Plmbg rE2909 Hartson av
" Leslie (Wilmai ship elk McKesson & Robbins hE
2104 Nebraska av
" Wesley (Helens opr Wash Water Power h£S33
Rockwell av
Malcolm Cath R (wid Wayne D) rW23J2 Dean av
" Clifton D (L Viola) mtce Old Union Stockyds r
Veradale Wash
" Dora M 'wid Walter) hE3424 Pacific av
" Horace C iMinnie A) bldg contr W1412 9th av
apt 1 b do
"Harry 'Eliz M) ct reporter Superior Ct hWS04
25th av
" lljos H studt rW804 25th av
Malcom Kenneth G (Joan M) slsmn Cenl Macby hWS330
Princeton tl
Malecha Jas F ntg opr eng Fairchild Air Force Base r
S206 Post
" Mary J kitchen wkr Sacred Heart Hosp r52U Ce-
dar apt S
" Ruby G tel opr Court House rW1215 Mallon av
Malek Alma (wid Leonard) hN5903 Regal
" John (Bertha) roofer Krueger Sht Mtl hE2934 Ro-
wan av
" Max carp Albert P Boooe TE313 Gordon av
Malenke Arth H (Mooa F) supt shop GNRy hEl619
20th av
Malerich Jos B (Imogene G) pntr Donn M Greil hE612
Sharp av
" Ralph R (Eileen A) pntr Donn M Greif hN5307
Monroe
Maley Alva S (Margt J) mtce Fairchild Air Force Base
hElSlO Mallon av
" Cbas H jan WU Telez hS427 Cowley
Majhum Kay studt rS734 Lincoln
Malicki Lawrence E (Jo Ann) USAF h3320 Soutii
Loop
Malico Carmine J (Virginia L) carrier PO hE725 36th
" Virginia L Mrs case wkr State Oept Pub Assistance
hE72S 36th av
Malikowski Stanley L (Ethel M) formn FTS hl«50]4
Oak
Malina Henry (Luclte K> lab Union Iron Wks hE823
Heroy av
Malinak Peter (Bernice h) lab Kaiser Alum & Ohem
bE280S Boone av
" Sally Mrs d«)tal asst Peerless Dentists r Trentwood
wash
Malito Josephine opr Pac Tel rE548 Wellesley av
Malk Frank hN2618 Perry
Malkawa Tom pantrymn Davenport Hotel
Malkemus Victor H (Patricia A> USAF hE904 11th av
Mailer C A rW324 Ist av
Mallert Marguerite E Mrs elk McKesson & Robbins b
E3ai4 34thav
Mallery Cornelia Mrs hS1419 Madison
" John D (Patricia) chf elk Standard OU bSlSIS
Madison ,
MaUey Lester J (Goldle) hM4418 Monroe
Mallon Apartmente (Willard Griffith) W1830 Mallon
" Rest Home (Jas B Pigott) W1304 MaUon av
Mallory Genevieve Mrs dental asst Dr Edwin L Jones
rW2207 Sinto av
" Wm J (Ei^d I) mcch Western Serv hS1202 Lacey
Mallow Mary I Mrs typ Fairchild Air Force Base h
W330 Dalton av
Malloy Charlie car chkr GNRy hESiOS Everett av
Malb' B Lucas (Helen C» carp Western Fruit Exp h
E318 Mission av
" Lester J (Goidie M) equip c^r City Street Dept r
N44 18 Monroe
Malm Leon V (Mildred K) slsmn Jensen-Byrd
" Mildred K Mrs sten Spokane Bank for Cooperatives
Malmoe Bertha Jan Button Btdg rEI23<W Portland av
" Martha ian Button Bl^ rEm06 Portland av
" Martin B (Gladys M) slsmn Intl Harv hE327 Gord<»i
(
MALMOE
" Melvin R dvadelle) mech Hull-RodeU Mtrs r Oppor-
tunity Wash
" Richd L (Bonnie Ll driver Kaiser Alum & Chem hN
5024 Jefferson
'■ Ronald M elk Albertson's Food Center rE227 Gordon
Malmquist Arth (Margt) pntr Davenport Hotel hW
2324 Dalton av
" Carl A ( Inland Odorite Co) bE12l7 11th av
" Edwin R •< Hazel G I emp Mtr Sup hN4503 Hartley
" Robt T mach Diamond Drill Contracting r Opportunity
Malmsten Harry E (OUve B) hW455 22d av
" Oscar E (Amy i eng NPRy hW511 Columbia av
Malnati John B Uosephinc) hE2719 Pacific av
Maine Don M (Leagh) repr Tractor Training Serv hE
1106 20th av
Malo Eleanor V flwn Newberrys hW3408 Fairview av
" Walter H (Eleanor V) plasterer Carl Hoffseth hW
3408 Farview av
Malonc Allie Mrs aide St Luke's Hosp hW315 River-
side av apt 317
" Oaude A (Mae E) lab Naval Sup Depot hWl907
Mansfield av
" Darlene Mrs tcr Pub Sch rWlOOS 25th av
" Edna (wid Bert) W1025 9th av
" Frances ofc sec The C M Fossett Co rW1622 8th av
" Gay lord V (Lorraine) aide City Eng hN4827 Nelson
" Georgia A Mrs bkpr Monroe hW724 17th av
' Jack H (Evelyn A) slsmn Lawton Printing liE1227
39th av
" John E (Georgia A; Monroe Hardware) hW724 17th
" Mae E Mrs elk New Method Lndry rl907 Mansfield av
" Max R stocknm David L Jones Whol Florist r5718
Custer
" Michl B (Darlene) chem Pac Northwest Alloys r
W1003 25th av
■' Opal Mrs hW1807 Grace av
" Osie L Mrs cik War3s hE543 Princeton av
" Patk E (Frances A) mech Morrison Knudson Co b
W 1622 8th av
" Patricia J tech Sacred Heart Hosp rW1622 8th av
" Philio O I Emma) cond GNRy h3312 Columbia eir
" Richd B emp Roundup Gro r Grecnacres Wash
" Robt J (Myrle H) mach Spokane Mach bEJ52<J
MaUon av
" Roderick M ( Gertrude i hE3804 24th av
" Rosa D ( wid Henry i hE959 Hartson av
" Steve W rW!021H Sprague av
" Thcs H <Osie L) tchr Pub Sch hE543 Princeton av
" Timothy R studt rW1622 8th av
" Wm (Sybel) cik PTS hE3703 eth av
Maloney Adrian L mgr PTS hN2206 Hemlock
" Agnes rN28 Madison
" Geo D (Helen Ei emp Kaiser Alum & Chem hE504
Olympic av
" Grace H hE1312 Montgomery
" Geo R I Patricia L) USAF h5407 Ash apt 3
"Gerald J (Jane) cond GNRy hE2927 Gordw) av
" Helen K elk in chge PO i£i04 Olympic av
" Jas A ( Margt L) elk PTS hW2784 Broad av
MALONET JOSEPH L (Axoui H) Paatmaster hW21S4
Stb At. Xei BlTcrsMe 7-4818
MALONEY JUSTIN C (Ceaev* A), Lawyer 497 Emirire
State BUg tan Bivenide Av. Tel MAdlsm
44n«». IkEtOS NM-a At, Tel BUdsoa 7-7»6«
Matthew J hE4834 Commerce av
Robt E ( Helen E i hEl! 17 Providence av
Thos E (tva B) organizer Teamsters Union hE3711
Wm J (Cole K; General Placement Bureau) h
N4402 Hawthorne
Malony Walden L (Pearl B) consulting eng 324 SymoDS
bldg hW72fl 23d av
Maloof Dorothy elk XL Cleaners rW1017 Garland av
" M*ry Mrs (Dotty Lyne BeauO' Parlor) bW1017
Garland av
Malos Uoyd G (Lawanda) sec-tieas Air Filter Sales &
Service Co of Spokane hWlOll 15th av
Malotke Herman R (Lena) hE2219 (Jueen av
Malott Conner studt rS121 WaU
" Douilas F (Mariln) miUwkr White Pine Sash hW808
Spotford av
" Leooanl W (Myrtle C) lab Quickie Box hE4127
I2thav
/
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 20A
373
0^.
STATtMENT
OLYMPIC HOTEL
"?
HMMk
ROOM.
210 »K>Y STft£€T
SAN NU^40$CO
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DATE.
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lto«ni i'rvm
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STATBMKNT rATABUt
WBEN KgypKBKa
ftv
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374
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 20B
f;
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 20C
375
376 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 21
^^^ inOiVTKIATKm CAfiU
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MOMInr. MWSJI AND VMUIAMJM kRMT M
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 22A
377
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378 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 22B
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tti ^^ a «
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IMPROPER ACTIVITIES IN THE LABOR FIELD 379
Exhibit No. 23A
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380 IMPROPER ACTIVITIES IN THE LABOR FIELD
ExHiiiiT No. 28A — Continued
!Tfttf!Tt
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 23A — Continued
381
r
t
-i
cvj
382 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 23A — Continued
LONG BI&l'IMrr
iONG E^TillfCE
e}#i«ft«
^
%^ise^T^*§^
n^^L
1*>U
IMPROPER ACTIVITIES IN THE LABOR FIELD
383
Exhibit No. 28A — Continued
LOHG INSTANCE
CHABGE ^«',
nom. MDunfOMMi I !
;/
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TOTAL CKiUJi'^i.
13
N9 5217
%
384 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 23A — Continued
»0T
ii MIILTIICIMAH 71
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IMPROPER ACTIVITIES IN THE LABOR FIELD 385
Exhibit No. 23B
iii.Wlpii ^
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386 IMPROPER ACTIVITIES IK THE LABOR FIELD
EiXHiBiT No. 23B--Continued
s
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IMPROPER ACTIVITIES IN THE LABOR FIELD 387
Exhibit No. 23C
388 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 24A
^ml
J}LYMPIC HOTEL
a
|||0kI3 SzsPHt
CASHIER #1\
II
«!
I :
I *
\
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4Mfi»M«fii«
^jW^S U338
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IMPROPER ACTIVITIES IN THE LABOR FIELD 389
Exhibit No. 24B
OlYMPIC liOIEL
Cut
Ch>iis( to _
^ " • ■ ^^^ /
f\ TR*>SftR TO CIT* IfUGE
390 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 24B— Continued
T
Ktrttmuc*. HO.
NO.
CHAirat*
r»» U»»T AMOUNT
tN THI* COLUMN
rntyttout aiu.
m M. 6frf'S ''^
2740
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AecoanU Payaht* W^n Bjfruimntd
THE Olympic Hotel
St,ATTI.t
IMPROPER ACTIVITIES IN THE LABOR FIELD 391
Exhibit No. 24B — Continued
mtmim
CiYIHHC HOTEL
SCATTUE. 1
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Explanation
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tkat »ur merUm will M«r<t tto con(iaiuui.c*. Puutc KrrAiN Tmi* Statmcht
392 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 25A
^ U »« I
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 256
393
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394 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 25B— Continued
12_
13
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18
19
20
21
22
23
24
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IMPROPER ACTIVITIES IN THE LABOR FIELD 395
Exhibit No. 25B — Continued
NO.
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OR
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89.S.30 0—57 — pt. 1- 26
396
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No., 26A
H0TEL II9LTN01AH
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26A — Continued
397
■^
CITY LEDGER
iW
joorr couiciL or nuovas ** ^^
1020 .{mo iii^-jy.f-
DATE OESC.
FEB 2 6 P'O
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8 5 6. w»
6 6 3 .; 4 *
CHARGES
BALANCE
2 4 1 .5 ^
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HOTEL MULTNOMAH
PORTLAND. OREGON
398 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26A — Continued
»0}fa DKTAHCE
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IMPROPER ACTIVITIES IN THE LABOR FIELD 399
Exhibit No. 26A — Continued
LONG DISTANCE
CHARGE
liOTi
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^^ff
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LONG DISTANCE
CHABGE
HOTEL' MULTNOMAH
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400 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26A — Continued
^fxmmmm
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IMPROPER ACTIVITIES IN THE LABOR FIELD 401
Exhibit No. 26A — Continued
^c»*»^ , ./.r, /
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CHASGE
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402 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26A — Continued
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26A — Continued
403
404
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26B
ocwTinx
ff^' '
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19
BOtii MULTNOMAH
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IMPROPER ACTIVITIES IN THE LABOR FIELD 405
Exhibit No. 26B— Continued
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406
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C
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• 125
125
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1228
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IMPROPER ACTIVITIES IN THE LABOR FIELD 407
Exhibit No. 26C — Continued
uomtrntxtta.
CHAIOC
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TOTAi. CMAIIOC
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408 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C — Continued
%'
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C — Continued
409
jj^-jntfctftTdiMc-i
LONG DBTAMC£
CHABGE
HOTEL MOLTMOMAII
L'^' .is
«pi>o.-;«^
^
TOTAL CMAHGE
>
r
7279
LOMO SBTAIKZ
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N? 7526
410 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C — Continued
canMSE
mxam
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TOTAL CKASat
xe irm
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C — Continued
411
tonanRJiiKz
JbMli*^
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tfcaatw
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TOTAL CMAaCC
aua^a
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CHAIGE
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7,yi^
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8!»3?.0 O— 57— nt. 1-
412
IMPROPER ACTIVITIES IN THE LABOR FIELD
lOlfCI MBTJUiCS
GSAftGC
Exhibit No. 26C — Continued
X? S633
1
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CHABQE
• J-
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7
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TOTAL a*A»<a:
i N« 8641
III M'"'»-
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C — Continued
413
MnmoMAM
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N? 8757
414
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26C— Continued
i
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 26D
415
416
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 27
^iUj,
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10
11
12
13
14
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19
20
21
22
'23
24
REMAflKS
Date
JttiT-ff
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ttl
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• 016
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CREDITS
BAL. DUE
PtCK-UP
Room No.
i 541 t» 5il U-^-i
556 1» 531
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^ -636
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TW^NSftR TO CITY LCOCCR
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 27 — Continued
417
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418
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 28A
:\
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 28B
419
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9
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Credits ' BAL. DUE
i 721
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14.T2e5» 14.12
15.97 l»15.9r
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>y-l— -■
r*ut t0 im <«•>■«»*» (
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420 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 28B — Continued
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 28C
421
THE
'WM?^ SfATTLI S ^«&Wl^ ^*6At HOTEt
SEATTLE n WASH.
HSTCIM OONf TIAIATIRt
isi OOMT my
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THE Olympic Hoteu
422
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 28C — Continued
:\J""-^""""^ ■■■■■■ ■ ■ ■■■^■-
•ATt I ITCM*
■ n «, ,,i ^
(•A> LMil AMOUNT
UN THt* C<M.OMH
m\tm
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174 Jt
17 31
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^'8 »'«««C««.V AMHKMIATa VOUII ffATIWMMMI iM<a VtinvM TO WBIWT rT* CO«**tHW4M«C
Account* PaymbU Wii»n R«n<i«r«<i
The Olympic Hoteu
•mATTl.«
IMPROPER ACTIVITIES IN THE LABOR FIELD 423
Exhibit No. 28D
o*
%^
424
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 29
W
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N {17355
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JOHN SWEENY ^^H Q£NNY WAY—.
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 29 — Continued
425
426 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 30
KxHiBiT No. ;i() — Continued
.#12
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89330 O— 57— pt. 1 28
428
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 31
We ToB moiMy kpt.lOl*
Kr 30D ■eUnttilln
froB Or««on Laundry limn lupply
Jan« 1st. 1955
12 full sl«» »h««ti
/% pillow casAf
6 bath towali
6 hand towals
toanad fron Rark Plaza, to ba
elaan«d and ratornadJ
2 blankets
2 pillows
■MH
kmeasm wjmk^y/jL
1969 S.W. Park *•<*«»•
S«iA . « . fwrnlshad .
On^umlabad
Garaga tl^atal,
Slaofcrtel^ <*ar»i
Claattine Gharfs
U»t ttMAba Sol
WSM.
AmoRt Fald
BAUSCSSGB
C»o«ellatlOT» OwM
Sqpaetad B»U
-^ Data of tert'i
ttaiMr <rf aate
- lw« laaawi.
^^Vf itMmt-S.OMXa
»«hin «^rty (30) *»» ft«» **•, dapoait M»t *• wrfw*»d *•
X Jwr.% »]» apjOloatUm far and a«raa ta *^_»**JS!?*f*' ** ^
/JMl!
oe«ii|7 irtwdaaa «ttiM«A urittan notiaa to tha
rceaivadt
abai*«
. ajiurtMnt*
ateli
■mt'eaaaaat Igr tkM
me. ^
}ii£A4f£7\/
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3i4{Bit)iira ar
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ExaiBTT No. 31 — Continued
■i*
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Exhibit No. 32
C*T. ■* IMM
pM i- ?«ry4r#*^/^ -^^lli Ctp^^^jL
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^„ >ti»r Tftww^t^rfi tfpi^ -^ /^ FfnUrtnT
■out _
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?. ^.00 tn<IHBHftgW^ ikii4Hhr^ianf£^: ittioaz, tOf
AFX» 9CS
IMPROPER ACTIVITIES IN THE LABOR FIELD 429
Exhibit No. 32 — Continued
I hereby maka application for Jlpartaent Mo.^j22cat th« rat« of | / /? "7 — ■ C^^a".——
per month plus ♦ ^ — •^~ for Electricity and > y ~"~for Car Storage. ,
I further agre* to pay the sua of t va^^ta a Deposit to be held by
King Toner to apply on aaoiints oiring] »r missing and/or daaagsd fumishingB.
I agree to the 30-day Vacating Notice Raqulrwaent and provisions of the
Oregon State Laws applicable to this tenancy.
Nans-!
y^B-^'-c^^-'-^
Firm
Present Residence Address^
Business Addr«8B
Vlfe taplaywi
Dependents
Position
^^(S^
<fr^*-^«^K>>
./TI/... (Age)Nj4>^ r-y*-^a^ ^(Age)
References (Other than Relatives)
Phone No. ^O^ O /^ / ' Phone Wo._ (& <5a-ig^ '^/^^
Make of Car.
License
TOI^^^^V-VV*-^'
■7
^t^ c:i
Approved E|y.
Begin Occupancy.
• ••«»»»««»*«
f / jI For Office Die Ctily
•^- ^ . Notified .
.Keys Assigned.
^Ili^^
OQCardex
IB l(al?.box
D Inuex
P
tr^-:
430 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 32 — Continued
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 33
431
432
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 34
Ir4»rnotion3l lf»B»w}M>od of T«amtte«, Chatrffeun, War«h»u»«m«n and H»!^
HONORABiE WfTHORAWAt CARD
aiRTICLi: XVigt. see, 5 (a) . This Is to certify «>at the bearer hereof.
Bkotbth.
wh«»
nameTuSears on the margitt of this card in his,^»»aTandwrltmg. haa
paid aU dueTand demands and withdrawn i« ga6rf starring from roem-
^«»C_v$.
bership in Local No_
Given under ow hands and,4he8jea} of Local Union No.
j^tri?
i
|S£al)
I
Thla
■J^^ "^dav o^Z^:ff±!i^^«.^^
C'C'^A-i-^ (J......
% HII«T£D I M !».«.»-
^Secretary
.President [over] *"»
l_ iO'.t «-M iO0»l
IMPROPER ACTIVITIES IN THE LABOR FIELD 433
Exhibit No. 34A
P
MUcellaneoiU Sb^UueftA £ccal ^mOH, A/a. 223
AffUuthm; bitcmtioad Biothufaood of Teuutcn, ChtaShan. WuOntataat lai Hetpm of Anerica; joiat Coaodl
No. 57, Ceotnl Uixic GnaKil o{ Puctkad uti Vkiai«T, Ammcuk FabBMbn of tAoc, Oagao Stu» Fcdmtino of Ubot.
rCAMBTKM aulLAINa • leao N. K. TNIHP AVCNUK • l»0MTWAt40 ia. OMKSON • cavt ■IVI
November Z2nd, lOfi'i
Mr, Stan Terry,
1451 N. E. Alberta,
Portland, Oregon.
Dear Sir and Brother:
This withdrawal card is being issued to you by
directive of the International Union through Clyde C.
Crosby, International Organizer.
You will also find enclosed our check in the
amount of $5,00, which check is In refund of December
dues.
Fraternally yours,
L. E. Hildreth, Sec'y
LEH/em
Enclosures: Withdrawal Card
Refund Check
HAVE IT DELIVERED'
434 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 34B
MUcetkmmuA 3>4^m^ local ^mtm N^ 223
ASi»i*i'»! fatemwSoMi Bwtbeihood <rf TMnaten, Chi»ff««r»> W«*oia«a>to u>d H»^m <£ Aiwn«, Joint 0«adl
TKAMrr.« .uivoma . ,0.0 N.«.THmB*v.«u. . foWTUAHO i«. a««ooH . :^^*g;';Sj
October 6, 1955
Mr. Stan Teriy
iitan Terry & '^cagjany
llt51 N. ^. Alberta
Portland, Oregtm
Dear Sirs
We received the fourth quarter dues for your employees but
no asseaomeat was included in the payroents. As of October 1,
there has been a ZSi per month assessment levied.
Woul you please auteait 25# per man per month so that we may
clear our records.
Very^tnily yours.
L. ET'Hildreth, Secretary./^
lb
•HAVt IT DELIVERED*
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