2
^
^0^ a-t/i ■/
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
HEARINGS
BBFORH THD
SELECT COMMITTEE
ON IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
EIGHTY-FIFTH CONGKESS
FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, 85TH CONGRESS
MARCH 26 AND 27, 1957
PART 5
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 COMMITTEE
ON IMPEOPER ACTIVITIES IN THE
LABOE OE MANAGEMENT FIELD
EIGHTY-FIFTH CONGRESS
FIRST SESSION
PURSUANT TO SENATE RESOLUTION 74, &5TH CONGRESS
MARCH 26 AND 27, IGSl
PART 5
:Prlnted for the use of the Select Conmiittee on Improper Activities in the
Labor or Management Field
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHBiGXON : 1957
(PUBLIC )-
. _ \l oH/
^
^351
Boston Public Library-
Superintendent of Documents
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, JB., North Carolina KARL E. MUNDT. South Dakota
PAT MCNAMA^A, Michigan BARRY GOLDWATBR. Arizona
ROBERT F. Kennedy, Chief Counsel
Rdth Yodng Watt, Chief Clerk
n
CONTENTS
Area: Seattle, Wash. (Beck)
Appendix 1 685
Testimony of —
Beck, Dave 1511, 1538, 1654
Shefferman, Nathan 1578, 1592, 1632
EXHIBITS
117. Harris Trust & Savings Bank check dated Julv 25, 1949, ducL-d Appears
pavable to Dave Beck in the amount of $8,000 signed by on page on page
Nathan W. Shefferman 1584 1685
118. Harris Trust & Savings Bank check dated January 17,
1950, pavable to Dave Beck in the amount of $4,000
signed by Nathan W. Sheflf erman 1 584 1 686
119. Note from desk of Dave Beck to Mr. Shefferman asking
him to pay T. Yorozu Gardening Co. $1,918.15 and
receipt from T. Yorozu Gardening Co 1 604 1 687-
1688
120A. Statement from T. Yorozu Gardening Co. to Dave Beck
dated November 29, 1952, in the amount of $179.86 1606 1689
120B. Statement from T. Yorozu Gardening Co. to Dave Beck
dated October 31, 1952, in the amount of $440.38 1606 1690
120C. Statement from T. Yorozu Gardening Co. to Dave Beck
dated August 30, 1952, in the amount of $182 and note
■ from desk of Dave Beck to Mr. Shefferman 1606 1691-
1692
120D. Statement from T. Yorozu Gardening Co. to Dave Beck
dated September 30, 1952. in the amount of $184 with
note from desk of Dave Beck to Mr. Shefferman 1606 1693-
1694
121. Statement from Prentice Nursery & Decorating Co. to
Dave Beck dated Julv 22, 1952, in the amount of
$2,159.77 ' 1607 1695
122. Note from desk of Dave Beck to Mr. Shefferman asking
that he forward check to Prentice Nursery in the amount
of $4,534.94 1608 1696
123. Statement from Saks Fifth Avenue in the amount of
$90.92 1609 1697
124. Statement from Haymarket Clothing Co. dated February
9, 1954, to N. W. Shefferman, shipped to Dave Beck, 2
coats in the amount of $270 1612 1698
125. Statement from H. Sulka & Co. in the amount of $179.50
with note from desk of Dave Beck "Please pay this
account— Dave" . 1613 1699-
1700
126A. Samples of items purchased for Dave Beck bv Nathan
Shefferman I 1615 1701-
1703
126B. Sample of items purchased for Dave Beck, Jr., bv Nathan
Shefferman J 1615 6704
127. Nine folders of bills in bulk (*)
128A. Harris Trust & Savings Bank check dated June 8, 1949,
payable to Dave Beck in the amount of $100 and signed
by Nathan Shefferman 1635 1705
128B. Harris Trust & Savings Bank check dated December 23,
1949, payable to Dave Beck in the amount of $427.40
and signed bv Nathan Shefferman 1635 1706
128C. Harris Trust & Savings Baiik check dated October 27,
1950, payable to Olympic Hotel in the amount of $224.10
signed by Nathan Shefferman 1 635 1 707
♦May be found in the files of the seleet committee.
in
IV
CONTENTS
128D. Harris Trust & Savings Bank check dated October 28, duoed Appears
1950, pa.vable to Dave Beck in the amount of $200 and on page on page
signed by Nathan Sheflferman 1635 1708
128E. Harris Trust & Savings Bank check dated Februarj^ 15,
1950, payable to Dave Beck in the amount of $300 and
signed by Nathan Sheflferman 1635 1709
128F. Harris Trust & Savings Bank check dated July 25, 1950,
payable to Olympic Hotel in the amount of $200 and
signed by Nathan Sheflferman 1635 1710
128G. Harris Trust & Savings Bank check dated August 15.
1952, payable to Dave Beck in the amount of $200
signed by Nathan Sheflferman 1635 1711
128H. Harris Trust & Savings Bank check dated September 17,
1952, payable to Dave Beck in the amount of $750 and
signed by Nathan Sheflferman 1635 1712
1281. Harris Trust & Savings Bank check dated September 17,
1952, payable to Dave Beck in the amount of $200 and
signed by Nathan Shefferman 1635 1713
128J. Harris Trust & Savings Bank check dated January 23,
1951, payable to Dave Beck in the amount of $150 and
signed by Nathan Sheflferman 1635 1714
128K. Harris Trust & Savings Bank check dated March 9, 1951,
payable to Dave Beck in the amount of $125 and signed
by Nathan Sheflferman 1635 1715
128L. Harris Trust & Savings Bank check dated September 24,
1951, payable to Dave Beck in the amount of $200 and
signed bv Nathan Sheflferman 1635 1716
128M. Harris Trust & Savings Bank check dated .January 2, 1953,
payable to Olympic Hotel in the amount of $100 and
signed by Nathan Sheflferman 1635 1717
128N. Harris Trust & Savings Bank check dated January 15,
1953, payable to Dave Beck in the amount of $100 and
signed by Nathan Sheflferman 1635 1718
1280. Harris Trust & Savings Bank check dated February 14,
1953, payable to Dave Beck in the amount of $200 and
signed bv Nathan Sheflferman 1635 1719
128P. Harris Trust & Savings Bank check dated July 13, 1953,
payable to Dave Beck in the amount of $150 and signed
by Nathan Sheflferman 1635 1720
129. Labor Relations Association of Chicago check dated June
11, 1952, in the amount of $750 and signed by Shelton
Sheflferman 1648 1721
130. Four checks of Brown Equipment Co. dated June 21, 1954,
for $50,000 each pavable to Dave Beck 1677 1 722-
1725
131. International Brotherhood of Teamsters, Chauflfeurs, and
Warehousemen check No. 136 dated April 7, 1955, in
the amount of $163,215 and signed by Dave Beck,
president, and John J. English, general secretary 1679 1726
132. Letter to Joint Council 28. Building Association and
Western Conference of Teamsters, signed by Dave
Beck, dated, December 30, 1954 1680 1727-
1728
133. Accord and satisfactory agreement signed by Frank
Brewster and Dave Beck dated Julv 7, 1954 1680 1729-
1730
134. Letter dated December 29, 1955, to Joint Council 28
Building Association and Western Conference of
Teamsters, and signed by Dave Beck 1681 1731
135. Note from desk of Dave Beck to Bill saying to send check
in amount of $5,629 payable to public relations divi-
sion, and International Brotherhood of Teamsters
check No. 8544 dated October 9, 1953. in the amount of
$5,629 payable to public relations division 1682 ^^32-
17d4
Proceedings of—
March 26, 1957 1509
March 27, 1957_. 1591
INVESTIGATION OF IMPROPER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
TUESDAY, MARCH 26, 1957
Select Committee on Improper Activities
IN THE Labor or Management Field,
Washington^ D. C.
The select committee met at 10 a. in., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the caucus room, Senate Office Build-
ing, Senator John L. McClellaii (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; Senator
Joseph 11. McCarthy, Republican, Wisconsin ; Senator Karl E. Mundt,
Republican, South Dakota; Senator Barry Goldwater, Republican,
Arizona.
Also present : Robert F. Kennedy, chief comisel of the select com-
mittee; Jerome Adlerman, assistant counsel; Alphonse F. Calabrese,
investigator; Carmine Bellino, accountant consultant; Ruth Young
Watt, chief clerk.
(Members present at the convening of the session: The chairman,
Senators Ives, Ervin, McNamara. Kennedy, and Mimdt.
The Chairman. The Chair wishes to announce to the audience that
you are here as guests of the committee. You are welcome but we ask
each of you to give us your full cooperation by helping us keep order
so that these proceedings may continue, when they start, uninterrupted.
The Chair feels that it is appropriate that he should make a brief
opening statement for the record before the witness who is scheduled
to testify today is called to the witness stand.
In the course of an investigation regarding operations of labor
imions and their relationship with governmental agencies, conducted
by the Senate Government Operations Permanent Subcommittee on
Investigations during the latter part of last year and the early part of
January of this year and prior to the establishment of this select com-
mittee, information was discovered clearly indicating the misuse of
union funds by Mr. Beck, International President of the Brotherhood
of Teamsters, Chauffeurs, Warehousemen and Helpers of America.
As chairman of that subcommittee I so advised Mr. Beck by letter,
January 5, 1957, and invited him to be present at the hearings that
subcommittee had scheduled for January 15, 1957, for the purpose of
giving him an opportunity to answer such charges and derogatory testi-
mony as might be testified at that time.
1509
1510 IMPROPER ACTIVITIES IN THE LABOR FIELD
Tliereaf ter, on January 17, Mr. Beck wired me :
In compliance with doctor's instructions, I am unable to accept your invi-
tation to apijcar in Washington before your subcommittee Friday, January 18.
Subsequently, this select committee was created on January 30,
1957, by Senate Resolution 74, of the 85th Confess, and commmiica-
tions have taken place between Mr, Beck and myself as chairman of
the select committee since that date.
In the course of that correspondence, I, as chairman of this select
committee, advised Mr. Beck by letter on February 16, 1957, that :
It is expected that your testimony wiU be desired by the committee. As you
know information has already been develoi?ed refiecting upon your personal
financial operations as related to union activities.
In that letter, I also advised Mr. Beck that :
It is anticipated that further information of that nature will be developed
by the committee during hearings at an early date,
and suggested —
This, no doubt, is of interest to you and the select committee will be very
glad to have you attend the hearings,
I, therefore, requested that in the meantime :
I request that you instruct your attorney, or executive assistant to make avail-
able to the committee all of your personal financial records from 1950 to date.
And I advised him that :
The information they will provide is essential to a thorough and proper
examination into an investigation of the issues involved.
A subsequent exchange of telegrams between Mr. Beck and the
chairman have already been placed in this record, culminating in his
agreeing to appear before this committee today and have present his
financial records that the conmiittee has requested.
This hearing today was scheduled primarily to allow Mr. Beck to
turn over to the committee certain of his personal financial books and
records. I think it fair and proper to say that during the past 10
days, evidence was developed before this committee supplemented
by additional information that the committee has, that clearly in-
dicates that from the years 1949 through the first 3 months of 1953, Mr.
Beck took more than $320,000 from the teamsters union treasury in
Seattle.
From the information now before this committee that money so
taken by Mr. Beck was neither a gift nor a loan to him from the
union. That and other evidence already before this committee show-
ing the loose and irresponsible management of union funds by high
union officials has caused this committee, the rank and file of union
members and the public at large, to have a deep concern.
It is something in which this committee under its mandate and re-
sponsibility has a dii'ect interest and an official duty to reveal the
facts, to get the truth about such practices and to recommend to the
Senate remedial legislation to prevent such occurrences in the fu-
ture.
It is almost trite to say that it is most disturbing to have informa-
tion in this record indicating that the president of the Interna-
tional Brotherhood of Teamsters, Chauffeui-s, Warehousemen, and
Helpers of America, the largest and most powerful union in our coun-
try, may have misappropriated over $320,000 of union funds.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1511
Therefore, tlie urgent necessity for this committee to receive the
financial books and records of Mr. Beck, that he has been requested to
produce and also to have him appear as a witness and explain to this
committee and to the people of the United States all of the facts sur-
rounding his taking of this money from the union's treasury is most
apparent.
I regard this testimony as indispensable if the committee is to
establish a complete and truthful record. We are, therefore, glad
to give Mr. Beck this opportunity to appear and we invite his whole-
hearted and enthusiastic cooperation to the end that the truth may
be established.
Does any other member of the committee wish to make any comment
before we proceed to take testimony ?
Senator Ives. I simply want to state that I concur absolutely in what
you had to say. I think we all feel the same way about it.
The Chairman. Thank you very much, Senator Ives.
Are there any other comments before we proceed ?
Senator Ervin. I just concur and adopt what Senator Ives said,
which expresses my views on this subject, and what the chairman
has said.
The Chairman. If there is nothing further, the witness, Mr. Beck,
will come around. You are present and you will stand and be sworn.
You do solemnly swear that the evidence you shall give before this
Senate select committee shall be the truth, the whole truth, and noth-
ing but the truth, so help you God ?
Mr. Beck. I do.
The Chairman. Be seated.
TESTIMONY OF DAVE BECK, ACCOMPANIED BY HIS COUNSELS,
ARTHUR D. CONDON, DAVID FOSS, AND KENNETH SHORT
The Chairman. Will you state your name, your place of residence
and your business or occupation for the record ?
Mr. Beck. My name is Dave Beck and my residence is 16749 Shore
Drive, Seattle, Wash., and my office address is 25 Louisiana Avenue,
Washington, D. C, and I am president of the International Brother-
hood of Teamsters, Chauffeurs, Warehousemen and Helpers of
America.
The Chairman. Mr. Beck, under the rules of the committee, a wit-
ness appearing has the right to have counsel present to advise him
regarding his legal rights. Have ^ou counsel present today?
Mr. Beck. Part of my counsel is present. Chief counsel Senator
Duff is not present. Mr. Condon, associated with him, is present, and
Mr. David Foss, associated with Senator Duff is present.
The Chairman. Mr. Condon and Mr. Foss ?
Mr. Beck. And Mr. Kenneth Short who has the records with him
is also present.
The Chairman. Counsel for Mr. Beck will state their name and
their places of residence and give their office location please.
Mr. Condon. My name is Arthur Condon, my home is in Annapolis,
Md. and my office is 1000 Vermont Avenue, Washington, D, C.
Mr. Foss. My name is David Foss and I live at 2800 Quebec Street,
Washington, D. C, and this is my office in Washington.
1512 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. Thank you very much, gentlemen.
. Mr. Beck, yesterday the Chair received a communication from you
which I interpreted as one that you desired to read at the opening of
the hearings today, under rule 7 of the committee rules. Is that
correct ?
Mr. Beck. That is correct. I Avould like to have my counsel read
it, if there is no objection from the chairman.
The Chairman. Let me see now. You are the udtness.
Mr. Beok. That is right.
The Chairman. You signed it?
Mr. Beck. That is right.
The Chairman. I suggest you read it.
Mr. Beck. I will be glad to read it.
Mr. Condon. Could we have the original ?
The Chairman. I have the original.
Mr. Beck. This communication is under date of March 25, 1957,
addressed to the Honorable John L. McClellan, chairman of the Sen-
ate Select Committee on Improper Activities in the Labor or Manage-
ment Field, Washington, D. C.
In accordance with i-ule 7 of the rules of procedure of your committee, the
following? statement is filed herewith :
Pursuant to Senate Resolutions 74 and 88, 85th Congress, 1st session, your
committee has required my appearance today together with my personal records.
I have appeared, and I have with me the records which the committee has
demanded.
A purpose of this committee under the resolution establishing it is to "conduct
an investigation and study of the extent to which criminal or other improper
practices or activities are, or have been engaged in in the field of labor-manage-
ment relations, or in groups or organizations of employees."
Insofar as this purpose seeks to establish, determine, or adjudicate "criminal
practices or activities" the functions of tliis committee to such end constitute a
usurpation of executive and judicial prerogatives not bestowed upon the Con-
gress, the Senate, or this committee under the Constitution and hence, are in
violation of articles I, II, and III of the Constitution. Consequently this objec-
tion to the committee's lack of jurisdiction is fully reserved.
In view of nationwide newspaper, radio, and television accounts of the pro-
ceedings before this committee and the testimony in connection therewith, and
further in view of proposed criminal actions against me of which I have been
advised are arising out of alleged violations and further in view of other asserted
or implied violations of Federal and State laws, I intend to assert all privileges
as to anything I might say, and T have a detei'mination not to waive or imply
the waiver of any protection and privileges afforded me by the Constitution and
the Bill of Rights as to any question which may be propounded to me or to the
production of my records.
Respectfully submitted.
Dave Bp:ck,
25 Louisiana Avenue, Washington, D. 0.
The Chairman. Thank you very much, Mr. Beck. The original
should be returned for the committee's files. Here is a mimeographed
copy of it which counsel may use.
Mr. Beck, does that conclude your prepared statement and opening
statement?
Mr. Beck. Yes, Senator. Mr. Chairman, I would say it would.
The Chairman. Then it becomes, as I interpret this statement, the
duty of the Chair to rule on the question you raise as to the jurisdic-
tion of this committee.
I interpret the third paragraph of your letter to me, which you have
just read, as challenging the jurisdiction of this committee to interro-
gate you regarding the subject matter under inquiry.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1'513
Is the Chair's interpretation correct according to your intent and
j)nrpose ^
(The witness conferred with his counsel.)
Mr. Beck. Yes; I do challenge the jurisdiction.
The Chairman. Then it becomes the duty of the Chair to rule upon
it, subject to his ruling which may be appealed by any member of the
committee to the vote of (he committee, and if no appeal is taken the
Chair will appeal it himself to the committee for their approval or
disapproval of his ruling.
The Chair overrules the challenge to the committee's jurisdiction.
There is no doubt in the C'liair's mind that this committee under the
i-esolution of the Senate establishing it has had delegated to it by the
United States Senate as an arm of that body a duty to conduct the
character of investigation that the committee is now in course of
conducting, and that duty and the responsibility under the mandate of
that resolution that is vested in this committee charges the committee
with the duty of interrogating this witness about the matters that are
involved in these headings, and particularly those matters that the
Chair referred to in his opening statement.
As to the contention that it violates articles I, II, and III of the
Constitution, the Chair would remind those who are interested that
section 8 of article I of the Constitution provides —
The Congress shall have power to lay and collect taxes, duties, imposts, and
excises, to pay the debts and provide for the common defense and general wel-
fare of the United States; but all duties, imposts, and excises shall be uniform
throughout the United States.
Under that paragraph 1 of section 8, which the Chair has just read,
the Congress is charged with the duty of enacting laws that will pro-
tect the common defense and general welfare of tliis country.
Since the Congress has enacted laws legalizing and authorizing
certain organizations of laboring people, and since those laws were
within the jurisdiction and within the authority of the Congress to
enact, it is the continuing duty of Congress to constantly review those
laws, to ascertain how they operate, how they are administered and
the results achieved therefrom, and, where necessary or where advis-
able, to amend, change, modify, or repeal such laws.
I would also call attention to the third paragraph of section 8 of
the Constitution which says that the Congress shall have power to
regulate commerce with foreign nations and among the several States,
and with the Indian tribes.
I need not refer to other sections of the Constitution to sustain
the position that the Chair has taken in overruling this challenge.
I think practically all of our labor laws are based upon the com-
merce clause of the Constitution.
Certainly if we have the authority to legislate in any area, the
Congress has the authority, and any legally constituted committee
of the Congress has the authority, to investigate in any area m which
it has a duty and responsibility to legislate.
That is the ruling of the Chair, gentlemen of the committee.
Senator Mundt. So that we can know exactly where we are at
the very beginning ♦of this hearing, I would like to move that the
ruling of the Chair be sustained.
Senator Kennedy. Second the motion.
1514 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Goldwater. Second the motion.
Tlie Chairman. The motion has been heard that the ruling of the
Chair be sustained. It has been duly seconded.
Is there any discussion ?
Senator Ixncs. I would like to make a comment in that connection,
Mr. Chairman. In your discussions of the Constitution and what is
intended by the Constitution, and what is intended by the Senate set-
ting up this committee, I think that I should point out that among our
duties is to ascertain whether there has been any law violations as
well as these other things that you have mentioned. I do not think
that you mentioned law violation. That is just as important as all of
the rest of these things. There is no point in our enacting legislation
in the Congress if it is going to be disregarded and if it is not going
to be observed and that is what we have got to find out and we have
to find out what the causes are.
There is no question in my mind but what the Senate intended us
to have this power in setting up this committee. If the Senate has
the power the committee has the power, so you are challenging the
Senate itself, and you are challenging the Congi-ess itself in the chal-
lenge you make. You are challenging, moreover, the whole Govern-
ment of the United States.
Senator Kennedy. I was just going to say four members of this
select committee are members of the Labor Committee which has direct
jurisdiction over amending any laws which may be necessary involving
the rights of labor. For that purpose, they were placed on the
select coinmittee and, therefore, I do not think tliat there is any
question that the select committee has the right to interrogate Mr.
Beck.
Mr. Condon. Mr. Chairman
The Chairman. Just one moment, until this motion is disposed of.
Is there any further discussion, gentlemen?
You have heard the motion, and tliose favoring the motion say
"Aye," opposed "No."
The motion is unanimously adopted, and the Chair is sustained.
Mr. Counsel ?
Mr. Condon. Mr. Chairman, Mr. Beck's status at the moment is in
the nature of a volunteer, as I know you will appreciate.
The Chairman. It was bj' agreement, yes, sir, and that is correct.
May I ask Mr. Beck this question, if you are prepared. Do you
have your records present, Mr. Beck, your financial records that you
agreed to bring ? Do you have them present ?
Mr. Beck. Yes, my records are here in the room.
The Chairman. All of the records that you agreed to bring in the
exchange of telegrams between you and the chairman?
Mr. Beck. All of the records that I agreed to bring, yes.
The Chairman. They are present with you here in the room ?
Mr. Beck. Yes, they are, Mr. Chairman.
The Chairman. Are you now prepared to deliver them to the com-
mittee and make tliem available to the committee for examination
and inspection ?
( The witness conferred with his counsel. ) *
Mr. Condon. Mr. Chairman, may I say this comes back to the point I
raised.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1515
Tlie Chairman. Let tlie witness do the testifying and he can say
whether he is prepared or not prepared.
Mr. Beck. No, ]Mi-. Chairman, I am not prepared to release the
records.
The Chairman. You are unwilling to do so?
]Mi-. Beck. I am not ])repared to release them.
The Chairman. You are unwilling to do so upon request?
Mr. Beck. I am not prepared to release them, Mr. Chairman.
The Chairman. All right.
Now, Mr. Counsel, do you want to say something ?
Mr. Condon. I suggest, Mr. Chairman, it would be appropriate to
have a subpena served at this point.
The Chairman. The Chair has already prepared for such eventual-
ity, and had already signed the original subpena before you spoke,
and I am now in the process of signing the copy.
]\Ir. Condon. Thank yon, sir.
The Chairman. Mrs.*^ Watt, as clerk of the committee, you will
promptly serve the subpena on the witness, Dave Beck.
(Subpena was served by Mrs. Watt.)
The Chairman. You will deliver to me the original, with your
return thereto, and place your return on it later.
Mr. Beck, this subpena I shall direct be printed in the record at
this point. It is directed to Dave Beck, of 1G749 Shore Drive NE.,
Seattle, Wash., and it directs — and I will just read it and it can be
printed in the record.
United States of America.
Congress of the United States.
To Dave Beck, 16149 Shore Drive NE., Seattle, Wash., Oreeting:
Pursuant to lawful authority, you are hereby commanded to appear before
the Senate Select Committee on Improper Activities in the Labor or Management
Field of the Senate of the United States, on forthwith , 1957. at
o'clock m., at their committee room, room 101 Senate Office Building, Wash-
ington, D. C, then and there to testify what you may know relative to the
subject matters under consideration by said committee.
And produce duces tecum all of your personal and financial books and records
maintained by you and by others on your behalf for the years 1949 through 19.55,
peitaining to any loans or advances from the International Brotherhood of
Teamsters or any unit thereof, and all of your personal financial books and
records maintained by you and by others on your behalf for the years 1949
through 19.J.5 pertaining to any financial transactions that you have had with
companies, corporations, or individuals having contracts or financial dealings
\Aith the International Brotherhood of Teamsters or any unit thereof.
Hereof fail not. as you will answer your default under the pains and penalties
in such cases made and provided.
To to serve and return.
Given under my hand, by order of the committee, this 25th day of March, in
the year of our Lord one thousand nine hundred and fifty-seven.
(Signed) John L. McClellan,
Chairman, Senate Select Committee an Improi>er Activities
in the Labor or Management Field.
Mr. Beck, since this subpena calls for you to produce your records in
loom 101 of the Senate Office Building. The Chair will declare that
the committee is now in open session in Room 318 of the Senate Office
Building, and as I understood your testimony a moment ago you say
that you do have those records present here in the room.
Is that correct?
Mr. Beck. That is correct.
1516 IMPROPER ACTIVITIES IN THE LABOR FIELD
The CiiAiR:MA]sr. You are then ordered to turn those records over
to the committee.
(The witness conferred with his counsel.)
Mr. Beck. I must decline to do so because this committee lacks
jurisdiction or authority under articles I, II, and III of the Constitu-
tion and, further, because my rights and privileges granted by the
Constitution as supplemented by the fourth and fifth amendments are
violated.
The Chairjviax. The Chair overrules your contention that this
committee has no jurisdiction. On the basis of your refusal on tliat
basis, the Chair now orders and directs you to deliver those records
to the committee.
(The witness consulted with his counsel.)
Mr. Beck. I decline on the same grounds as stated before.
The Chairman. As I understood your further statement, you de-
cline on the grounds of the fourth and fifth amendments to the Consti-
tution.
Mr. Beck. That is correct.
Senator Mundt. Could we have the photogTaphers sit down so we
can know what is going on in the committee room?
The Chairman. I believe we can. I think that that can be promptly
arranged.
Senator Mundt. Thank you.
The Chairman. I understood you to decline on the grounds of the
fourth and fifth amendments.
Mr. Beck. I decline on the basis of the statement that I previ-
ously
The Chairman. On the grounds of the fourth amendment ?
Mr. Beck. I shall repeat it again so that there is no possibility of
error in the record.
The Chairman. All right.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or autliority under articles I, II, and III of
the Constitution. Further, because my rights and privileges granted
by the Constitution as supplemented by the fourth and fifth amend-
ments are violated.
The CHAiR:\rAN. The Chair overrules your objection on the ground
of the fourth amendment to the Constitution. If you want to take
the fifth amendment, then the Chair will ask you this question : Do
you honestly and truthfully believe that if you made those records
that you have of your own present here today in response to the
arrangement that has been made between you and the Chair and the
committee, that you now have present here today in response to the
subpena just served upon you — do you honestly believe the contents
of those records vrould reflect information that might possibly tend
to incriminate you ?
Mr. Beck. I desire, Mr. Chairman, to read again
The Chairman. I do not care what you read. I want you to answer
this question.
]Mr. Beck. I will answer the question by this language.
The Chairman. The Chair wants to know if you honestly believe
that the submission of your records to this committee might tend to
incriminate you if the information therein should be revealed to this
committee.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1517
(The witness consulted with his counseL)
Mr. Beck. Yes, I think very deihiitely so.
The Chairman. You think it would.
Mr. Beck. I think so, yes, sir, in line with my previous statement
to the committee.
Tlie Chairman. All right. Do I understand then, or are we to
understand from the statement that you have read that you will de-
cline to answer any questions on the same grounds, decline to answer
any questions regarding your transactions with the union that you
represent and that you head as general president ?
(The witness consulted with his counsel.)
Mr. Beck. Yes, in line with my previous statement to the
committee.
The Chairman. Do you honestly believe that if you answered
truthfully under oath, questions that this committee might ask you
regarding your transactions with the union that you represent, that
a truthful answer thereto might tend to incriminate you?
(The witness consulted with his counsel.)
Mr, Beck. The answer is that it might.
The Chairman. Yes, sir. All right, Mr. Counsel, you may proceed
to interrogate the witness regarding his transactions with the Inter-
national Brotherhood of Teamsters, Warehousemen, and Helpers,
and Chauffeurs, and any unit thereof.
Senator Kennedy has a question.
Senator Kennedy. Mr. Beck, are you a member of the AFL-CIO
executive council ?
Mr. Beck. Yes, Senator Kennedy.
Senator Kennedy. Did you sign the AFL-CIO executive council
code issued in January of 1957 ?
Mr. Beck. I can't answer whether I did or did not.
Senator Kennedy. In the code it is stated that it is the policy of
the AFL-CIO that if a trade-union official decides to invoke the fifth
amendment for his personal protection, and to avoid scrutiny by
proper legislative committees, law-enforcement agencies, or other
public bodies into alleged corruption on his part, he has no right to
continue to hold office in his union.
As you have invoked the fifth amendment and in view of the fact
that you are a member of the executive council, do you plan to resign
your office in your union ?
Mr. Beck. Will you give me that date again?
Senator Kennedy. January 1957.
Mr. Beck. No, I did not sign that, to the best of my knowledge and,
in fact, I opposed it in the executive council.
Senator Kennedy. Did you plan to resign your office in your union
because of invoking the fifth amendment?
Mr. Beck. I certainly do not.
Senator Kennedy. Do you plan to resign from the AFL-CIO?
Mr. Beck. I certainly do not ever intend to resign when I am exer-
cising a constitutional right.
Senator Kennedy. In other words, you are not bound by the execu-
tive council code ?
Mr. Beck. I certainly am not. I am only bound by the interna-
tional law of the Teamsters International union.
1518 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Kennedy. And not by the xVFL-CIO which is suggested
in its code ?
Mr. Beck. Very definitely not. . „ „, . • u^
Senator Kennedy. That all members and all ofticers of unions who
invoke the fifth amendment should resign from their union and,
therefore, you do not agree with the code?
Mr Beck. I certainly do not agree with the code and I opposed
the code because in my personal judgment, it is a violation ot the con-
stitutional rights of the citizens and I am unalterably opposed to any
violation of ^any rights of the citizens which m my judgment tar
transcends the rights of labor or any other group.
Senator I^nnedy. Thank you, Mr. Beck
The Chairman. Mr. Beck, you are president of the International
Union, are you not, of the Brotherhood of Teamsters, Warehousemen,
and Chauffeurs, and Helpers, and so forth?
(The witness consulted with his counsel.)
Mr. Beck. Would you repeat that? • n ^ p .1
The Chairman. Mr. Beck, are you present y the president of the
International Brotherhood of Teamsters, Chauffeurs, Warehouse-
men, and Helpers ?
Mr. Beck. Yes, Senator, I am. •. , 4; .1 ;-, T.,^a,.
The Chairman. How long have you been presidei\t of tlub Intei-
national? p -,r.rn
Mr. Beck. Since December 1, of 1952. i n • .1 4.
The Chairman. ^Y[\fxt official position did you hold m the team-
sters union prior to that time ^ , ^ , -r ^ ^-1
Mr. Beck. Executive vice president of the Teamsters International
^ The' Chairman. Wliat position did you hold with the Western
Conference of Teamsters?
(The witness consulted with his counsel.)
Mr Beck. I held the honorary position, I would say, of president
of the Western Conference of Teamstei^ and I say honorary be-
cause I was not on the payroll of the Western Conference of Team-
sters but exclusively on the payroll of the International Brotherhood
of Teamsters, as executive vice president. w.^fo,-,. Tnn
The Chairman. \^aiat was your position with the Wcbtein (con-
ference of Teamsters? „ ^ rr, ^
Mr. Beck. President of the Western Conference of Teamsters.
The Chairman. You were president?
Mr. Beck. Yes, sir. . i-i ^ . „
The Chairman. Whether you drew a salary or not, that was an
official position?
"Mr Beck. Yes, sir. • , i i. j
The Chairman. An official position that you occupied and accepted
full responsibility for the performance of its duties i . ^r . . ,..
Mr. Beck. I was the president of the Western Conference of Team-
'*The Chairman. Mr. Beck, I believe you have just stated a moment
ago that you regarded your privilege the fifth amendment as a right
that transcended anv rules, code of ethics, or any other law or obliga-
tion that you might have to the union, is that correct i
That is the union that you represent?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1519
Mr. Beck. I don't think that I used that exact language, and I pre-
fer that you read from the record exactly the language.
The Chairman. Will you state it again ?
Mr. Beck. What is the question, please ?
The Chairman. I believe you stated and, if necessary, I will go
back to the record, I believe you stated that you regarded in sub-
stance, at least that you regarded your rights and privileges under
the fifth amendment as transcending any duty or obligation that you
owe to your union. Is that correct ?
Mr. Beck. In substance, I think it is correct, but I think what I
said was that I felt that any of the constitutional rights of the citi-
zenry transcended the rights of labor organizations or any other
type of organization.
The Chairman. All right, now, Mr. Beck
Mr. Beck. All of its amendments, the Bill of Eights in its entirety
and the entire Constitution.
The Chairman. I am very glad to get your views.
Mr. Beck. I am very glad to give them, Senator.
The Chairman. Do you know that the position that this right of
using the fifth amendment so as to preclude your having to disclose
knowledge and information you have about transactions you have had
with your union in which evidence has been developed that you have
misappropriated and misused funds of that union — do you regard
your privileges under the fifth amendment as transcending your duty
and obligations to the laboringmen of this country who belong to
your imion?
Mr. Beck. I would like to
(The witness consulted with his counsel.)
Mr. Beck. I would like to say, at this time in answer to your
question
(The witness consulted with his counsel.)
Mr. Beck. That
(The witness consulted with his counsel.)
Mr. Beck. I would like to answer the question this way : That there
are legal rights involved in answering this question and that I very
definitely am answering, and in taking advantage of any of the amend-
ments, I am doing so upon the 100 percent unanimous advice of my
chief counsel. Senator Duff, and associate counsel identified with him.
The Chairman. Well, the Chair certainly would not reflect upon
your counsel. We regard them as very able and competent, no doubt.
Mr. Beck. We agree on one place.
The Ch.virman. No doubt they feel that it would be best for you to
take the fifth amendment, if they have so advised.
Mr. Beck. I am carrying out the advice of Senator Duff, my
counsel.
The Chairman. But what I want to find out, and I think there
are about 1,300,000 or 1,500,000 teamster union members in this coun-
try who would like to know whether you regard the fifth amendment
as a protection device to yourself and transcending the duty a!id obli-
gation that you owe to them and the responsibility that they have
honored you with in the higliest position of trust you now hold in
their union.
1520 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Condon. Mr. Chairman, I feel that Mr. Beck has expressed his
views on the subject that 3'ou have dealt with and I submit that your
question is entirely irrelevant to the proceedings.
Tlie Chairman. Well, I do not think many people in America will
agree with that conclusion. I think that we are entitled to know in
this inquiry. "W^ien one invokes the hfth amendment, it has always
been my position that it is a privilege. But he has no duty to invoke
it.
Some people are in positions of trust and honor and obligation
where, in my judgment, the duty and obligation they owe to those
who have placed them in that position of trust, certainly transcends
the right of involving the fifth amendment.
I just want to get his views about it. I want to give him this oppor-
tunity to tell his union members and tell the country, the people who
are interested in this proceeding, and its objectives, whether he so
regards it.
The Chair repeats the question, Mr. Beck, and you will answer it.
(The witness consulted witli his counsel.)
Mr. Beck. What was the last statement, please?
The Chairman. The Chair repeats the question and you are directed
to answer it.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of the
Constitution, further because my rights and privileges granted by the
Constitution as supplemented by the fourth and fifth amendments are
violated. And further, because the question is not relevant or perti-
nent to the investigation.
The Chairman. Are there any questions by other members of the
committee along the line that the Chair has been interrogating the
witness?
Senator Mundt. I have one. I wonder if we could get down to speci-
fics on which you are an authority and on which you can answer.
I have heard you described here this morning as the president of
the largest single labor union in America, is that correct?
Mr. Beck. That is correct, yes, sir.
Senator Mundt. In that office, and speaking now as to a matter of
policy, do you believe that the members of your union are entitled
to a full disclosure on the part of their national officials of the use
which these officials have made of the dues paid by the members ?
(The witness consulted with his counsel.)
Mr. Beck. I would answer that. Senator, this way : That the mem-
bers are entitled very definitely to my compliance with their interna-
tional constitution under which they elected me general president,
but I do not tliink that the members themselves, at least by an over-
whelming majority, desire that in electing me president of the Inter-
national Brotherhood of Teamsters that they impose upon me auT
violation of my constitutional rights as a citizen.
Senator Mundt. Mr. Chairman, may I have my question read again
and I think Mr. Beck did not quite understand it.
Mr. Beck. I think I understand it, but I will be glad to listen to it
again.
(Wliereupon, the pending question was read by the reporter.)
Mr. Beck. I very definitely do and I think that our constitution of
the International Brotherhood of Teamsters provides the method for
IMPROPER ACTIVITIES IX THE LABOR FIELD 1521
whicli any member can proceed under that constitution and I repeat
that I do not think that in electing me president of the Inteinational
Brotherhood of Teamsters that the membership ever intended that
they should impose upon my rights or violate my rights or ask anyone
else to violate my rights as a citizen of the United States in conformity
with the Constitution of the United States and the Bill of Eights.
The Chairman. Could I ask a question there?
Senator Muxdt. I want to follow up with one question. Since we
are agreed, then, and certainly I share your conviction that the men
wdio pay the dues should be entitled to know from their International
and high officials, how they spend the money and use the money which
is paid by dues, am I correct in assuming that you will answer any
question asked you by this committee with direct regard to the man-
ner in which you have used the money paid by the dues-paying mem-
bers of your union ?
Mr. Beck. I will answer your question that I will comply 100 per-
cent with any procedure taken by any member of the International
Brotherhood of Teamsters in conformity with the constitution of the
International Brotherhood of Teamsters.
But I will not waive any of the constitutional rights that my chief
counsel, Senator Duff, and his associates advised me to follow as
constitutionally my prerogative in defending my rights as a citizen
of the United States.
Senator Mundt. I yield to the chairman. I have another question,
but you had a question you would like to ask there.
The Chairmax. I just wanted to again try to determine and let
the union members know what your attitude is. Do you think when
they elected you president that they intended and were willing for you
to invoke the fifth amendment to keep from telling about money you
take of their treasury ?
(The witness consulted with his counsel.)
Mr. Beck. I repeat to you, Senator, that the constitution of the
International Brotherhood of Teamsters definitely and positively pro-
vides the machinery for any member of the international union who
feels aggrieved, to proceed upon the subject matter as it relates to
the general president or any other officer of the International Brother-
hood of Teamsters.
I further repeat that in my opinion, it is not the intention or the
desire of any member of the International Brotherhood of Teamsters
to impose upon me any violation of my rights as a citizen of the
United States which I previously stated to you is much more impoi--
tant than any labor organization or any other group.
The Chairman. Let me say this to you : If the constitution of the
international union to which you constantly refer permits, condones,
and approves of the conduct that you are displaying here today, it
certainly is a ragged document and it ought to be discarded. That
is my view about it.
Mr. Beck. Well, Mr. Senator, I would like to reply to that this
way : I don't like accusations to be made
The Chairman. Accusations have been made.
Mr. Beck (continuing). Unless they are facts.
The Chaiioian. They are here and you are refusing to answer
them.
89330— 57— pt. 5 2
1522 IxMPROPER ACTIVITIES IX THE LABOR FIELD
]Mr. Bkck. I ;uu stating to you that if there is any member of the
teamsters international union that feels aggrieved, there is constitu-
tional procedure within the constitution of the International Brother-
hood of Teamsters to proceed under in any alleged violation by my-
self as general president.
But I do not grant to any member of the teamsters internatioiral
union or no one else in the United States of America the right to
impose upon my citizenship rights as has been defined to me and
advised to me to follow by chief counsel, Senator Duff and his asso-
ciate counsel.
Senator Mundt. Continuing my question, Mr. Beck, since you have
agreed with me that the men who pay the dues of your union are
entitled to know from their general officers what disposition and use
has been made of the money that they pay as dues, and since you have
referred in your statement to the fact that you have some, I think you
said, income-tax trouble or income-tax problems, is it safe to assume
that you will then, answer any questions propounded to you by the
committee
Mr. Beck. Which committee ?
Senator Mundt. This committee. That you will answer any ques-
tions propounded to you by this committee with regard to the use that
you have made of the dues paid by your members provided those ques-
tions do not impinge upon your income-tax problems on which you
have taken the fifth amendment ?
(The witness consulted with his counsel.)
Mr. Beck. Senator, in my personal opinion, your question is far
too general because it could involve political contributions and it
could involve maybe other things, and I am following the advice of
my chief counsel, Senator Duff, and his associates.
The Chairman. Senator Ervin.
Senator Em^x. Mr. Beck, do you not believe that the members of
the teamsters are entitled to have as a president, a man who will con-
duct his affairs as president of such union in such a manner that when
he is called upon to account for his handling of union funds, he will
not feel compelled either on his own volition or on the advice of
counsel, to hide behind the fifth amendment to keep from giving an
accounting C
Mr. Beck. I will be very happy to answer your question this way :
First, let me say that I am not hiding behind anything. I am exer-
cising in my opinion on advice of my counsel, Senator Duff and his
associates, my legal rights as they asked me to expound it to you here,
and furthermore, I have repeatedly stated that the International
Brotherhood of Teamsters have a constitution with machinery pro-
vided to its membership to proceed under its provisions and I stand
ready and willing to follow out the mandates of that constitution to
the letter.
But I do not waive, by virtue of that, the right to exercise my obliga-
tions and duties and responsibilities conferred upon me by the Con-
stitution of the United States and the Bill of Rights.
Senator Ervin. Now, I have listened with interest to your state-
ment and now I Avill put my question in substance to you another time,
and ask you to give an answer :
Do you not think that the members of the teamsters union are en-
titled to have their president so conduct his affairs and their aff'aii-s
IMPROPER ACTIVITIES IN THE LABOR FIELD 1523
as their president, tliat he will be able to make a fearless and a truth-
ful disclosure of his financial transactions with their funds?
Mr. Beck. I certainly to believe that and the machinery of the
International Brotherhood of Teamsters, Chauffeurs, Warehousemen,
and Helpers, through its constitution very definitely guarantees that
to each and every member.
But it does not nor has any member the right to violate any of my
constitutional rights or procedure recommended to me to be taken by
my counsel, chief counsel. Senator Duff and his associates.
Senator Ervin. You place the sole responsibility for your pleading
the fifth amendment on Senator Duff' ancl youi- other comisel ?
yir. I^F.CK. I would like to answer your question this way : If I go
up to the hospital and hire a doctor, I intend to follow^ his advice.
When I hired Senator Duff, I intend to follow his advice.
Senator Ervix. I think that you concur in my inference then, that
Senator Duff' and your other counsel gave you very w^ise advice when
they told you to invoke the fifth amendment, after they had been
informed by you of your transactions of union affairs; is that not so?
Do you not think that they gave you w^ise advice ?
Mr. Beck. I would make this statement to you, Senator, with all
courtesy and deference, that I don't think Senator Duff by the wildest
stretch of his imagination would ever transcend any of the laws or
ethics of the bar association or of the United States Government to
give me advice that is in contradiction to the sound principles of good
American citizenship.
Senator Ervix. I agree with you. I have the highest opinion of
Senator Duff and I have no reason for not entertaining the highest
opinion of your other counsel and I was just asking you if you did not
agree Avith my inference that they gave you wise advice m advising
you to invoke the fifth amendment, after you had disclosed to them
your transactions as president of the international teamsters union.
Mr. Beck. Noav, in all fairness, Senator, let me say this: You have
no information in your possession upon which you predicate your
statement of what Senator Duff and I have discussed.
When you, in the slightest degree, impugn any of the motives that
actuate me in following out the advice of 'my chief counsel. Senator
Duff', you must necessarily impugn the Senator himself, who gave me
the advice.
Senator Ervin. Oh, no, I do not.
Mr. Beck. I am only following his advice.
Senator Ervix. Mr.' Beck, I do not impugn the motives of Senator
Duff or your other counsel. I have the highest opinion of Senator
Duff, as a citizen, as a lawyer, and as a former public official. Having
been a lawyer myself, I assume your counsel gave you good advice.
I never did advise any of my clients to plead'the privileges against
self-incnmmation unless I thought that if they made a revelation of
their conduct, that the revelation of their conduct would tend to show
tliat they had committed a criminal offense.
I say that, and I add this : I think it is a dutv of a lawyer to advise
his client to plead fhe fifth amendment or the privilege against self-
incrimmation when he thinks that if his client makes an honest and
truthful revelation of his conduct, that such conduct might tend to
show that he has committed some criminal offense.
1524 IMPROPER ACTIVITIES EST THE LABOR FIELD
1 appi-oA'e of such conduct and advice on the part of counsel and I
prjiise it.
(The witness consulted with his counsel.)
Mr. Beck. I A^oidd be very glad-
Senator Ervin. But I will say this, Mr. Beck : I do not give my full
approval to a witness emulating the example of Adam and trying to
blame his conduct on somebody else. As you will recall, when Adam
was called to account for eating the forbidden fruit, he placed the
blame on the woman, "whom Thou gavest me."
You attempt to shift the responsibility for pleading the fifth amend-
ment from yourself to your very fine counsel.
Mr. Beck. No. Let me answer that this way, and then I think I
liave had all I want to say upon the question that you are asking.
In ni}^ personal opinion if Senator Duff, my chief counsel, commit-
ted any overt act in ad\nsing me that is in contradiction to good sound
citizenship, it is the duty of the American Bar Association to remove
Senator Duff. I am only following his advice.
Senator EIrvin. Well, Mr. Beck, in order that you might not try to
shift to me an implied accusation that I have reflected in any way
upon Senator Duff or any of your other counsel, I would like to say
that I do not know any man I consider to be a finer American citizen
than Senator Duff.
Mr. Beck. Well, let's agree on this. Senator, and I have the highest
I'egard for you personally, also, because I have no reason to believe
otherwise, let's don't put Senator Duff* on trial liere. I am only carry-
ing out his advice.
Senator Ervin. I did not put him on trial. I merely marveled at
the fact that when you were asked questions you emulated the example
of our first father Adam and tried to shift the responsibility for your
predicament or, rather, for your pleading the fifth amendment, upon
some other person.
Mr. Beck. Senator, if I am pleading the fifth amendment, I want
to emphasize it over and over again, I am only doing it on the advice
of my chief counsel. Senator Duff, who occupies or did occupy a posi-
tion of honor in the United States Government comparable to what
you now occupy.
Senator ER^^N. And I would like to say that I think Senator Duff is
a fine man and a fine lawyer, and I am certain that he gave the very
best advice possible to his client when he advised you to plead the fifth
amendment.
The Chairman. Senator Goldwater?
Mr. Beck. Well, we could go on indefinitely. I don't intend to go
any further. I think I have emphasized that what I am doing is
carrying out the advice of my chief counsel. Senator Duff, and his
associates.
The Chairman. I.(et us have order.
Senator Goldwater?
Senator Goldwater. Mr. Beck, to change the subject, you referred
TO the constitution and bylaws of your international. You referred
to other laws. You have" referred to the Federal Constitution. You
are aware of the Taft-Hartley Act, I am sure, and section 9 that
requires reporting by labor unions. Has the international complied
with that section of the Taft-Hartley, and are those reports available
in the Labor Department?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1525
Mr. Beck. The International Brotherhood of Teamsters, have they
^complied ?
Senator Goldwater. Yes.
Mr. Beck. To the best of my knowledge, they have, though that
does not, of course, come under my department.
Senator Goldwater. You would have to sign that report, would
you not?
Mr. Beck. It is possible, Senator that I may have to sign it.
If so, then it is a matter of just routine and perhaps has even been
signed on the machine that carries my signature and office. Honestly,
I do not know.
Senator Goldwater. You do not know ?
Mr, Beck. No; I do not, Senator.
Senator Goldwater. I have one other question. Wlien you pay
your chief counsel, Senator Duff, are you going to pay him with
union funds or with the funds of Dave Beck ?
Mr. Beck. I assure you. Senator, he will be paid with the funds
of Dave Beck. No one else.
Senator Goldwater. That is all.
Mr. Beck. I am well able to pay him, and I shall do so.
Senator Goldwater. We have an idea that you are well able to pay
them, but I just wanted to make sure.
Mr. Beck. I want you to know also. Senator, that when I tell you
I will pay him, very definitely I will pay him.
The Chairman. Senator Mundt ?
Senator Mundt. You have referred several times, Mr. Beck, to the
fact that the constitution of the international provides methods by
which an aggrieved member of your union can bring about full dis-
closure of the use of funds made by his general officers. Can you
refer us to the paragi-aph or the section of your constitution that
you have been alluding to ?
Mr. Beck. Well, sitting here this 'morning, and not knowing ver-
batim the constitution, I certainlj'^ cannot do that. But I would be
very glad to go into the constitution and submit to you those sections
which substantiate the position I have just taken.
Senator Mundt. The reason I mention this is that we have a copy
of the constitution here, and I thought if you had in mind the section
or the area, we could perhaps find it ourselves.
Mr. Beck. It is my personal opinion that the subject of the investi-
gation is much too important for" me to rely upon memory of the
constitution, and I certainly would refer it to our legal counsel to cite
those sections to you, wherein the constitution of the International
Brotherhood of Teamsters gives a member the procedure to follow
and tlie right, in any instance where he feels aggrieved by the conduct
of any of tlie officers of the International Brotherhood of Teamsters.
Senator Mundt. I have had a great volume of correspondence from
members of your union, Mr. Beck, who consider themselves aggrieved.
They have suggested that we try now to find out from you in these hear-
ings what use you have made of these funds and what explanation you
have of the charges which have been ventilated during the course of
these hearings. Do you think this affords a splendid forum in which
you can provide that information for the members who may be ag-
srieved?
1526 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I cannot agree with the latter part of your question for
the reason that I think the constitution of the International Brother-
liood of Teamsters is the first procedure that should be followed by
any member, just the same as the constitution of the Elks I^odge or
the Masonic Order, the Knights of Columbus, or anyone else should
be folloAved by the member first, and I do not under any conditions
agree with you tliat I should give testimony in here when my chief
counsel, Senator Duff and his associates, advise me contrary.
The Chairman. I have just 1 or 2 other questions, and then I will
ask the committee members to indulge us and cooperate with us to the
end that counsel may ask some questions regarding specific matters
that have been testified to before the committee.
If I understand you correctly, Mr. Beck, you appear at least to
be taking the position that the constitution of the International
Brotherhood of Teamsters supersedes the Constitution of the United
States, of the laws of this land, of the Congress and of your Govern-
ment. You are denying it the duty and the right to inquire into
your transactions with the affairs of that union on the basis, you say,
that the union's constitution itself provides the right and the way,
and that therefore it is none of Congress' business, it is none of your
Government's business, whether you may have misappropriated funds
of that union ; it is none of your Government's business whether laws
need to be enacted to preA^ent the recurrence of such transactions.
Is that the position that you take, and is that the inference or impli-
cation you want to give and the infei-ence to be taken from your
testimony?
Mr. Beck. I would desire to answer your que.stion this way, and
I am just as anxious as you are to get this into the record. Senator.
In my personal opinion, I have never made the statement nor never
will in my lifetime — I served this Government in war, and I have
served tliis Government in many honorable capacities, not as exalted
as your own ; I have headed up many other oi'ganizations, such as
the Elks, which is a great national organization, and an American
one that no one can question — I have never made the statement and
I definitel}^ insist upon writing into the record a complete understand-
ing that I do not in the sliglitest degree question the sovereignty or
the power or the authority of any agency of Government. I have
simply made this statement, that the constitution of the International
Brotherhood of Teamsters provides machinery, not today or tomor-
row or yesterday, but for yeai-s, for any member who feels aggrieved
to bring the necessary charges against any officer of the International
Brotherhood of Teamsters.
What I have stated relative to the Congress and this committee and
its investigation, I haA^e stated in that instance there are many issues
involved, and that I have explicitly followed the advice of my chief
counsel. Senator Duff, and his associates, when I take the positions
that I am taking here. If I have any bad advice, then you must
charge it against my chief counsel, Senator Duff, and his associates.
The Chairman. We are not charging anything against Senator
Duff. You are responsible for the challenge which you have made to
the committee; to its jurisdiction. You have made that challenge.
You say you do not challenge your Government. I just wonder if
your spirit of patriotism — and you say you served yom- country in time
IMPROPER ACTIVITIES IX THE LABOR FIELD 1527
of war — if the love for your country would not compel you to try to
cooperate with this committee and ^ive it the truth.
Mr. Beck. Senator, I would be glad to answer that. I do not give
either you or I the sole right of American citizenship in its highest
I'esponsibility. There are millions of American citizens just as good
as either you or I. But I do say to you that when questions are in-
volved spreading over a wide area, where my family and many others
are involved, I seek legal counsel. I tried to find honorable legal coun-
sel, and I think I secured it, and I think when I get tliat kind of coun-
sel, the same as a doctor, I should follow the advice. I say to you again
that I am following explicitly the advice of Senator Duff and his asso-
ciates.
The Chairman. Well, I believe the record reflects that, that you
have said it a number of times. I wanted to see if your spirit of pa-
triotism did not nudge you just a little to cooperate with this com-
mittee and give it the facts, whatever is within your knowledge.
Mr. Beck. Senator, my spirit of patriotism is second neither to you
or anyone else in the United States of America, and I have demon-
strated it by actual war service and other records. But that don't
give you the right, in my opinion, simply because you are chairman
of this committee — and I have the greatest respect, admiration, and
desire to be most courteous to you and your associates — that does not
give you, in my rights, and I want to write it into the record, the right
in the slightest degree to impugn upon my motives or deprive me in
the slightest degree of my constitutional rights as advised to me by
Senator Duff and his associates, even though you may disagree with
eitlier Mr. Duff or myself.
The CuAiRMAisr. May I say to you, Mr. Beck, if anybody is impugn-
ing your motives, you are doing it yourself.
Mr. Beck. You are doing it. Senator; not me. The record cer-
tainly will clearly show that. You are impugning that I liave some
ulterior motive. I have no ulterior motive. I am only asking you to
accept the legal rights that I enjoy under the Constitution as defined
to me and advised to me by Senator Duff and his associates.
The Chairman. The pulDlic will judge that.
Mr. Beck. They certainly will. That is why I am anxious to write
into the record some of my thoughts on it.
Senator McNamara. You make a gi-eat point of representing as
president of this great international union, the membership of your
organization. I want to call your attention to the fact, before I ask
you the question, that you represent more than just the people of
your international here today in the eyes of the public. You are a
high-ranking member of organized labor. You are an international
president of a gi-eat union. In effect, you represent today the 15 mil-
lion members, in round numbers, of the organized labor movement.
When you answer these questions or refuse to answer these ques-
tions you are not only reflecting on yourself and j^our organization,
but you are also reflecting on approximatelj' 15 million Americans.
I think you liave a tremeudous weight on your shoulders. I want to
s^'mpathize with you because of that situation.
However, this committee is charged by the United States Senate to
make a study. Obviously, the ends are twofold : to recommend to
the Department of Justice actions where we find illegal acts have been
1528 IMPROPER ACTIVITIES IN THE LABOR FIELD
committed; second, and perhaps the most important duty, is to rec-
ommend legislation to correct improper activities in the tield of man-
agement and labor. Certainly you are placing the 15 million Ameri-
cans in some jeopardy when you are inviting, by your conduct in the
past, legislation that will curb all of these membei-s, I do not think
you want to take this duty lightly.
Are you inviting control of nonprofit organizations by your acts in
the past and your acts today 'i I will ask you that question.
Mr. Beck. I will be very glad to answer that question. I am not
taking lightly in the slightest degree any of my duties, nor am I as-
suming to speak for international organizations that I am not a mem-
ber of or an officer of. Nor do I in the slightest degree accept your
statement of any alleged guilt or not guilt. I say to you that the last
people in the United States, in my opinion, that should in the slightest
degree attempt to infringe upon the constitutional rights of any of its
citizens is the Senate officers, or the Members of the United States
Senate.
That is one of the reasons I am very happy that T have as a counsel
a former TTnited States Senator. And I am only carrying out his
advice. In my opinion, in this democratic Government of ours,
through the machinery of its courts and through the machinery of its
other judicial agencies, and through all of the machinery of its various
component parts, justice will always be determined. But I think it
can be determined through the judicial processes that permit cross-
examination, the filing of charges, the right to face the accusers, and
all of the other things that in my personal opinion, and apparently
shared by Senator Duff and his associates, I do not have an opportu-
nity to do in this hearing.
So I prefer, on the advice of Senator Duff and his associates, to stay
strictly in conformity with this Ignited States Constitution and its
Bill of Rights, and proceed through its machinery, through the various
agencies of Government, in order that, in the judicial atmosphere of
such procedure, the final determination of the accuracy of these al-
leged statements — and I impress again they are all alleged — shall be
determined.
Senator McNamara. Mr. Chairman, I would like to ask the witness
the question that I think is most important.
Since you have made public statements that imply use of funds of
the union for your own personal gain — and have you not made such
statements publicly on television ?
(The witness conferred with his counsel.)
Mr. CoxDOx. Senator McNamara, would you repeat that part of
your question toward the end where you actually asked the question?
Senator McNamara. Have you not publicly stated that you have
used large sums of the moneys of the teamsters' union for your own
]")ersonal gain ?
(The witness conferred with his counsel.)
]Mr. Beck. In my opinion, the question as you put it is a tricky
question and is not in concert with exactly what I said on the tele-
vision, and I stand on what I said on the television, and in any ju-
dicial court, tlirough the avenues of judicial procedure, with the right
of cross-examination, and with the rights of charges to be filed and
the rights to meet my accusers, acting on the advice of Senator Duff
and liis associates, I will answer them and prove them correct.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1529
Senator McNa:mara. I want to say to you, sir, that I am not trying
to trick you into anything. 1 want to say to you furtlier that I am
not a bit impressed by the fact that your counsel is ex-Senator Duff.
I would like to ask you this question
The Chaikmax. T^et the Cliair say to the audience : You are here as
our guests, you are welcome, but let us refrain from applause. Some-
times we have to smile a little and laugh a little. 1 can appreciate
that. But let us refrain from applause of approval or disapproval,
so that this proceeding may be carried on orderly and properly.
All right.
Senator McNamara. Mr. Chairman?
Mr. Beck. I would like first, if I can, Senator McNamara, to say
to you that if you thought for one second that I was charging you
deliberately with asking me a tricky question, I apologize.
In my opinion, however, the question as it pertains to me in trying
to answer very easily could be that in my judgment. But there was
no deliberate intention. I assure you.
Senator McNamara. I certainly accept your apology, and I appre-
ciate it, because I am not a tricky person.
Mr. Beck. I miderstand that. I thiiLk I know — I don't know you
personally, but I know mucli of you and all of it is good.
Senator McNamara. Now will you answer my question that I have
asked a couple of times? Do you not realize that your conduct in
the past, which you have publicly stated, is inviting legislation at
the Federal level beyond any now existing
Mr. Beck. Do you want me to answer that ?
Senator McNamara. No; I am not through with it — to become ef-
fective in the field of nonprofit organizations, labor unions par-
ticularly, because of these kinds of activities? Are you not inviting
further legislation that probably will be at least distasteful to the
large majority of the 15 million members of organized labor?
Mr. Beck. I would be very glad to answer this question this way,
I have too much respect, and far too much deep inborn conscious ap-
proval, of the great institution of the United States Senate to feel
that for one instance they would take advantage in the slightest degree
of anything to impose u]3on labor or nonprofit organizations anything
based upon other than factual data developed after exhaustive hear-
ings and after every opportunity for every person to be heard through
the avenues of constitutional procedure and judicial procedure.
In my personal opinion, labor is not always right by a long way,
but that goes for the doctors and everyone else. I have full confi-
dence that after all of the emotion is out of the way, and the hysteria
of it, that this committee and the United States Senate will decide in
the finals upon only those things which have been developed as factual.
Now, if there are any transgressions by labor or any other grouj)
in the interest of American Government as a whole, then we should
have additional legislation, and I personally do not object to it. But
I personally will support it. And I think there is much legislation
that I would support in many fields associated with labor. But I do
not feel that anything I do here in carrying out my constitutional
procedure or asking for my civil rights or my other rights to go through
the judicial processes under the Constitution of the United States in
any degree should be any reason for anyone, no matter what office they
occupy, to use that as an avenue of alleged violation of anything that
1530 IMPROPER ACTIVITIES IN THE LABOR FIELD
would result in the inauguration of laws contradictory to labor or to
nonpi'ofit or profit organizations.
Senator McNamara. That is all.
The Chairman. Senator Ives?
Senator Ivj:s. ]Mr. Beck, you have a imion shop, do you not, in
the teamsters, what amounts to a union shop ? I suppose it might be
called a closed shop, except that that is illegal at the present time.
(The witness conferred with his counsel.)
Mr. Beck. Do you mean in my oAvn office as general president ?
What is the intent of the question ?
Senator Ives. I mean your international labor organization, com-
posed of union locals, where they have a union shop. In other words,
anybodv to be a teamster has to belona- to the teamsters union; does ho
not?
Mr. Beck. He certainly has to belong to the teamsters union if he
is a member of the teamsters, the same as you would have to belong
to the bar association ; yes.
Senator Ives. He has to be a member of the teamsters union, does
he not, to function as a teamster?
Mr. Beck. No; he can function as a teamster without being a mem-
ber of the teamsters union.
Senator Ives. Try to get away fi'om it anywhere.
Mr. Beck. Again I want to state right now while we are getting
underway, I don't appreciate that kind of a statement, because there
may be sarcasm or something else in it. It certainly is not a factual
statement. He does not have to belong to the teamsters. We do the
best we can to organize him, but he don't have to belong.
Senator Ives. Let me tell you something about that. I come from
New York, I come from upstate New York, and a lot of my upstate
constituents try to ship something into New York City by buses and
trucks, particularly trucks, and they cannot get through to New York
City unless they join the teamsters there when they arrive. I am not
arguing against joining the teamsters, but I am telling you they are
forced to do it, physically forced to do it, and it is one of the chief
issues in New York State where labor is concerned at the present time.
Mr. Beck. Can I answer your statement this wa^-
Senator Ives. Yes ; you can.
Mr. Beck. That I can name you if you will give me a little time to
do it, not one but thousands of doctors in the United States that can't
practice in hospitals in the United States if they don't belong to the
medical association and pay their dues in it. I can name you thou-
sands and thousands of attorneys that can't practice law in the courts
of the United States unless they pay their dues to the bar association.
Senator Ives. May I point out one thing ?
Mr. Beck. We don't have that advantage in the teamsters.
Senator Ives. May I point out one thing in that connection? Two
wrongs do not make a right.
Mr. Beck. No, but there should be an investigation of both of the
others, if the investigation is based on that allegement.
Senator Ives. But this committee is not in that field, I would point
out.
Mr, Beck. I don't think they will be, either.
Senator Ives. In that connection, how do you make your contracts,
in connection with the employers ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1531
(The witness conferred with his counsel.)
Mr. Beck. Senator, are you asking me if the contracts between the
organizations and the employers are at a local or a national level?
Senator I\'es. Well, I do not care whether they are local, national,
or international. It does not make any difference to me.
Mr. Beck. They are made on a local level.
Senator Ives. I suppose they represent the members of the union?
Mr. Beck. On a local level, yes, sir.
Senator Ives. On a local level.
Mr. Beck, Yes, sir.
Senator Ives. You are protected, are you not, by the Taft-Hartley
Act in those contracts ? Is that correct ?
Mr. Beck. I certainlv will not agree to tliat, that we are protected
by the Taft-Hartley Act.
Senator Ives. You do not want to ojjerate under the Taft-Hartley
Act?
Mr. Beck. I would prefer for the Taft-Hartley Act to be taken off
the statute books, but apparently the majority don't agree with me, at
least in the Senate and the House. I am only giving you my personal
opinion. I would like to see the Taft-Hartley Act off' the statute
books, and I think the overwhelming percentage of the labor move-
ment would take the same position on tliat.
Senator Ives. Are you sure about that? No such testimony has
ever been given before any committee of which I have been a member.
Mr. Beck. You can always be sure of death and taxes, but I am sure
the majority would, overwhelming.
Senator Ives. Do you mean the individual members or the labor
leaders themselves?
Mr. Beck. Both.
Senator Ives. And this : Why is it that in the two national conven-
tions, political conventions, last summer, the heads of the labor organ-
izations in this country, the top heads, showed up and at least one of
them wanted the Taft-Hartley Act greatly amended? Mr. Schnitzler,
your own secretary-treasurer of the American Federation of Labor-
CIC) at the present time, said they did not want the Taft-Hartley Act
repealed, that they wanted it overhauled. Why is it that they want
to amend it?
Mr. Beck. Just a minute. Senator. You are a practical fellow and I
hope I am. I say to you that there are politics inside labor the same
as there is in the United States Senate or anywhere else. In the
merger or in the machinery of the^ CIO versus the A. F. of L., and
in the ph^^sical makeu]) of the building trades and others, it very
definitely became a political advantage to certain phases of labor to
take advantage of certain features of the Taft-Hartley Act for their
own particular personal advantage at some particular time. But it
would take me 2 hours to go into that, or longer.
I say to you that in my personal judgment, if you sent out a ballot
throughout the executive officers of the American labor movement, it
would be overwhelmingly, 90 percent overwhelmingly, in favor of
the wiping off of the statute books of the Taft-Hartley law.
If you did the same thing of the general membership, if you could
get a secret ballot, it is my personal judgment, just judgment, that the
same rule would follow, maybe not as great a percentage, however.
Senator I\-es. Would you be in favor of having the open shop?
1532 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. Would I what?
Senator I^'ES. Are you trying to tell me you are in favor of the open
shop ?
Mr. Beck. I certainly am not in favor of the open shop.
Senator I%t:s. If you wipe all of these things out, you are going to
come to the open shop. That may be the upshot of what you do here
today.
Mr. Beck. Senator Ives, let me say this to you
Senator Ives. I am not in favor of the open shop.
Mr. Beck. You have a very splendid record as far as labor envisions
your record. I agree with you on it. I certainly endorse it a himdred
percent, on the whole. But, it is my personal opinion that in exercising
my constitutional rights there is no reason for the Senate, the House,
or anyone else, to impose upon labor or anyone else, punitive action,
simply because I elect and my associates and Chief Counsel Duff ask
me to' do it. ^^^ly should that impune my motives or why should that
impune the United States Senate?
Senator Ives. I am not impugning your motives. I wish you would
think this thing through, though.
Mr. Beck. I am thinking it through.
Senator Ives. I do not think you have thought it through. You
are the head of a great labor organization, the greatest labor organi-
zation in the United States. As the head of that, you enjoy certain
rights, you have certain privileges. But I do not think your privi-
leges go as far as invoking the fifth amendment. You think that
through sometime. I do not think you have retilly though it tlirough.
Mr. Beck. Senator, let me say this to you. In all fairness, and
with the utmost courtesy, and with full acceptance of the tremendous
responsibility and the great honor you have in serving in the United
States Senate, I think that you know that I haven't come to the posi-
tion I am in by overnight decisions or judgment. I think that I have
associated with me counsel of the highest degree of intelligence and
integrity. Certainly he don't make snap decisions. It has only been
after mature deliberation and thinking and conferences with all of
its ramifications involved, that my chief counsel, Senator Duff, has
recommended to me to do exactly what I am doing today.
The Chairman. All right. Let us move on to something else.
The Chair wishes to observe that, if the witness will cooperate and
help the Senate and Congress get some information it needs, then it
can give more intelligent and judicious consideration to any change
in laws that may be needed. We are hopeful now that you will start
cooperating with the committee to that end.
Mr. Counsel, will you proceed to interrogate tlie witness ?
Mr. Beck. Mr. Chairman, just a moment now, because I want the'
record very carefully to show my position as well as your own.
The Chairman. You have done more talking than I have, so I ex-
pect it shows it.
Mr. Beck. I have done more talking than you have because you are
only one up there and there are 6 or 7 of you asking me questions.
I have to do more talking.
The Chairman. Go ahead for a moment.
Mr. Beck. I do want to get into the record that I haven't done or
said a single thing this morning except insist upon that I be per-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1533
mitted to follow the advice of my chief counsel, Senator Duff, and
exercise my constitutional rights. That is all.
The Chairman. You said that about 100 times.
Mr. Beck. I may say it 200 times more before we are finished.
The Chairman. You may get the opportunity.
Mr. Beck. Thank you.
Mr. IvENNEDY. We have information and it has been developed this
past week, that Mr. Dave Beck took large sums of money from the
teamsters union in Seattle, Wash., and used them for his own per-
sonal benefit. I would like at this time to question Mr. Beck about
some of those funds.
The Chairman. Counsel may proceed.
Mr. IvENNEDY. During the year 1946, Mr. Dave Beck took $31,000
from the Joint Council Building Association to pay off a loan that
he had from a bank.
(The witness conferred with his counsel.)
Mr. I^NNEDT. Mr. Beck, did you do that?
(The witness conferred with his counsel.)
Mr. Beck. In regards to the allegation, I must decline to answer
the question because this committee lacks jurisdiction or authority
under articles I, II, and III of the Constitution; further, because
my rights and privileges granted by the Constitution as expressed by
the fourth and fifth amendments are violated.
The Chairman. Do you honestly believe, Mr. Beck, that if you
answered that question truthfully, a truthful answer under oath might
tend to incriminate you ?
Mr. Beck. It might ; and I emphasize "might."
The Chairman. It really might.
Mr. Kennedy. Mr. Chairman, we have information that in the
same year, 1946, Mr. Dave Beck took directly from the Western Con-
ference of Teamsters $5,000 to pay off loans that he had made from
a bank, making a total in 1946 of $36,000 that he took from various
teamster organizations to pay off his personal loan from banks.
Mr. Beck, did you take $36,000 out of the teamster union funds to
pay off various of your loans in 1946 ?
Mr. Beck. In answer to what is simply an alleged situation, I must
decline to answer the question because this committee lacks jurisdic-
tion or authority under articles I, II, and III of the Constitution;
further, because my rights and privileges granted by the Constitution
as supplemented by the fourth and fifth amendments are violated.
Senator Ervin. Mr. Chairman, I raise the point that the witness
does not bring himself within the purview of the right to invoke the
fifth amendment because he says he is just answering a mere allega-
tion, and unless a truthful answer on his part would disclose some
fact which either in itself or in combination with other facts might
tend to show that lie had received money from the teamsters illegally,
then he has no right to invoke the fifth amendment, and he has not
laid a sufficient factual predicate for pleading the fifth amendment
in answer to that last question.
Mr. Beck. I stated definitely that it might, and I emphasized "it
might."
The Chairman. The Chair is of the opinion that a witness who
invokes the fifth amendment must state that if he answered the ques-
1534 IMPROPER ACTIVITIES IX THE LABOR FIELD
tipn truthfully and honestly that he honestly believes that such a
truthful answer under oath might tend to incriminate him, the Chair
will not grant the privilege or recognize the privilege except and
unless a witness will testify under his oath that he believes a truthful
answer would incriminate him or might tend to incriminate him.
These questions do not violate, and I want the record clear on that,
the questions being asked do not violate your rights under the fifth
amendment. You can only exercise that right. There is no violation
of your rights in aslring you the question, and your statement that it
violates your rights is inaccurate and is not correct.
Mr. Beck. I said it might violate my rights. It might violate
my rights. I have emphasized that.
The Chairman. The Chair will order you to answer these questions.
Mr. Kennedy. Have you, since the year 1946, taken approximately
$36,000 from the union funds in Seattle to pay your own personal
loans to banks ?
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further, because my rights and privileges granted
by the Constitution as supplemented by the fourth and fifth amend-
ments are violated. It might.
The Chairman. The Chair rules that that is not a sufficient answer
with respect to the fifth amendment. That does not invoke the fifth
amendment. You charge that the asking of the question violates your
rights under the fifth amendment.
Mr. Beck. I said it might.
The Ch-air^iax. The question does not violate your right under the
fifth amendment. The right under the fifth amendment remains in-
violate. You can only invoke that right, and you must either invoke
it or the Chair will order you to answer these questions.
(The witness conferred with his counsel.)
Mr. Condon. M^iat is the question. Senator?
The Chairman. Read the question.
(The reporter read from his notes as requested.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution; further, because my rights and privileges granted
by the Constitution as supplemented by the fourth and fifth amend-
ments are violated.
The Chairman. The Chair overrules your objection to answering
the question on the grounds of it violating the Constitution and that
this committee has no jurisdiction. The Chair, therefore, in view of
the statement you made that your rights are violated by the question
under the fifth amendment, overrules that challenge that your rights
are violated, and orders and directs you to answer the question. Tlie
committee is violating no right of yours under the fifth amendment in
asking the question.
(The witness conferred with his counsel.)
The (Chairman. You aie ordered and directed to answer the ques-
tion,
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
lAIPROPER ACTIVITIES IN THE LABOR FIELD 1535
the Constitution; further, because my rights and privileges granted
by the Constitution as suppleinented by the fourth and fifth amend-
ments are viohited.
Senator EmncN. Mr. Chairman.
The Chairmax. The Chair rules that that does not invoke the iifth
amendment. It only makes an accusation against this committee.
Therefore, the order and the direction to the witness to answer the
question stands.
Senator I-Crvix. ]Mr. Chairman, I was just going to suggest that the
Chair make it clear to iMr. Beck that questions do not violate anyone's
lights under the fifth amendment, and that nobody has any right to
invoke the fifth amendment, unless his answers to questions might
tend to incriminate him.
The Chairmax. The Chair feels that the witness has retained very
able counsel to advise him, and the Chair does not feel compelled to
maybe contravene the advice which has been given to him by his coun-
sel. Therefore, we will proceed to ask the questions, and where the
proper invocation of the fifth amendment is not made, the Chair will
order and direct the witness to answer.
Proceed, Mr. Counsel.
(At this point, Senator McCarthy entered the hearing room.)
Mr. Kexxedy. Mr. Chairman, we have information indicating that
from the year 1949 Mr. Dave Beck took from the union funds some
$4,812.39 and deposited it in his own bank account.
The Chairman. Ask the witness whether he did it.
Mr. Kexxedy. Mr. Beck, did you take some $4,812.39 from the
Western Conference of Teamsters in the year 1949 and deposit it in
your own bank account?
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution; further, because my rights and privileges granted
b.y the Constitution as supplemented by the fourth and fifth amend-
ments are violated.
The Chairman. The Chair overrules the objection to the question
on the grounds that there is no jurisdiction in this committee and that
its actions are in violation of the Constitution. The Chair holds that
the answer given, the further answer given, by the witness, charging
the asking of the question violates his rights under the fifth amend-
ment, is not a proper invocation of that right and, therefore, the Chair
orders and directs you to answer the question.
(The witness conferred with his counsel.)
The Chairmax. Let us have order.
Is the witness ready to answer ?
Mr. Beck. As soon as my counsel here can agree with me.
The Chairmax. Get him to agree with you and let us go ahead.
(The Avitness conferred with his counsel.)
Senator McCarthy. ]Mr. Chairman, while the witness certainly has
a right to confer with counsel, I do not believe counsel has a right to
write out the answer and hand it to the witness.
The Ch.\irmax. If it is invoking a legal right, I think counsel would
have a right to instruct liim as to a legal question. I do not think tlie
counsel should write out answers to questions of fact.
1536 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. It is strictly a legal matter. I know nothing about it.
The Chairman. If it is invoking a legal right, I think counsel has a
right to write it.
Mr. Beck. It is strictly legal, Mr. Chairman.
Thank you.
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution: further, because under my rights and privileges
granted by the Constitution as supplemented by the fourth and fifth
amendments, I need not answer, and this is also my answer to previous
questions which I answered with this language.
The Chairman. The Chair holds that does not invoke the fifth
amendment. Therefore, you are ordered and directed to answer these
questions. If that is going to be your answer to each one, the order
stands to each one of these questions that you answer that way that
you are ordered and directed to answer.
Proceed, Mr. Counsel.
Mr. Kennedy. Mr. Chairman, we have information that approxi-
mately $196,516.49 was taken from union funds in Seattle to pay Mr.
John Lindsay for work that was done on Mr. Beck's home and on
homes that were on Mr. Beck's property.
The Chairman. Wliat is that amount ?
Mr. Kennedy. $196,516.49 from 1949 through 1953.
Mr. Chairman, out of that amount, $136,805.65 was taken from Joint
Council 28 Building Association ; $59,710.84 was taken directly from
the Western Conference of Teamsters. Mr. Beck signed all these
checks.
The Chairman. Mr. Beck, the Chair will ask you whether there was
a total of $196,516.49 taken out of union funds to pay for the building
of your house and other houses on your property.
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution : further, because under rights and privileges granted
by the Constitution as supplemented by the fourth and fifth amend-
ments, I need not answer.
The Chairman. You are ordered and directed to answer the ques-
tion.
Mr. Beck. My answer is the same as I just read into the record.
The Chairman. The order of the Cliair will continue.
Mr. Kennedy. Mr. Chairman, we have information that from the
year 1949 to 1953
The Chairman. Let me ask the witness : Do you want to comment
on any of this, this $136,805 and some cents — he got out of what
council ?
jNIr. Kennedy. Joint Council 28 Building Association.
The ChaiRiman. Would you like to comment on that and clear it
up for us ?
Mr. Beck. I have answered the question. I do not desire to change
it in the slightest degree.
The Chairman. You do not want to comment ?
Mr. Beck. Only as I have answered the question.
The Chairman. I see.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1537
Proceed.
Mr. Kennedy. You signed the checks, did you not, for the Joint
Council 28 Building Association ?
Mr. Beck. I have answered the question, and that is all the answer
I have to it at this time.
The Chairman. This is another question. Did you sign the checks
for this money ^
Mr. Beck. I give the same answer. I will read it again if you want
me to.
I must decline to answer the question because this committee lacks
jurisdiction or authority under article I, II, and III of the Consti-
tution; further, because under rights and privileges granted by the
Constitution as supplemented by the fourth and fifth amendments, I
need not answer.
Senator McCarthy. Mr. Chairman, could I ask a question ?
The Chairman. Senator McCarthy.
Senator McCarthy. Mr. Beck, do you honestly believe that it would
tend to incriminate you if you answered this question ?
(The witness conferred with his counsel.)
Mr. Beck. Yes, it might, Senator McCarthy ; it might.
Senator McCarthy. You know that if you are innocent of any
wrongdoing, then you could answer very simply "yes" or "no." It
is only if you are guilty of wrongdoing that you might incriminate
yourself? You realize that, do you not?
Mr. Beck. I answer this question by the language that I have just
read into the record and upon the advice of my counsel. Senator Duff.
Senator Mundt. Senator Duff is not here.
Senator McCarthy. I have heard this Duff routine all morning and
I am getting a bit sick of it. Duff is a defeated Senator who has not
practiced law for some 25 or 35 years. This committee is not bound
by any advice of Duff'. I ask you the question. You are the man
who is on the stand and not Duff. Do you feel that if you were to
give a truthful answer to counsel's question about the $196,000, that
that would tend to incriminate you ?
(The witness conferred with his counsel.)
Mr. Beck. It might tend to incriminate me. It might.
The Chairman. All right, Mr. Counsel, proceed.
Mr. Kennedy. Mr. Chairman, we have information that from the
year 1949 to 1953, Mr. Beck took $85,119.92 from union fmids in
Seattle to pay his own personal bills.
The Chairman. Ask Mr. Beck whether he took the money.
Mr. Ivennedy. Mr. Beck, did you take some $85,119.92 from union
funds from the year 1949 to 1953 to pay your own personal bills ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III
of the Constitution. Further, because under rights and privileges
granted by the Constitution as supplemented by the fourth and fifth
amendments, I need not answer.
The Chairman. The Chair overrules the objections made specifi-
cally with respect to this committee not having jurisdiction under the
Constitution and also with respect to the statement that the witness
need not answer.
89330— 57— pt. o 3
1538 IMPROPER ACTIVITIES IN THE LABOR FIELD
It is his duty to answer unless he specifically invokes the privileg^e
of not being required to give testimon}^ against himself.
Therefore, the Chair orders and directs you to answer the question.
(The witness conferred with this counsel.)
Mr. Beck. May I answer his
(The witness confers with his counsel.)
Mr. CoNDOx. Just a moment, please.
(The witness conferred with his counsel.)
Mr. Beck. In answer to the last question, I decline to answer
because I refuse to give testimony against myself, and invoke the
fifth amendment.
(The witness conferred with his counsel.)
Mr. Kennedy. Mr. Chairman, there is information and we will
be able to ])resent some of it this afternoon, I hope, which indicates
that the checks for this $85,000 were signed by ]Mr. Dave Beck.
The Chairman. All right. "We obviously cannot conclude this
morning. The Senate is now in session and our members need to be
on the floor in a little while.
Therefore, the committee will stand in recess until 2 o'clock this
afternoon, at which time the witness will return to the witness stand.
(Present at the taking of the recess were Senators McClellan, Ives,
Kennedy, Ervin, McNamara, McCarthy, Mundt, and Goldwatei*-)
(Whereupon, at 12:05 p. m., the committee recessed, to reconvene
at 2 p. m., the same day.)
AFTERNOON SESSION
(The liearing resumed at 2 p. m.. Senator ,Iohn L. McClelln.ii,
chairman, presiding. )
The (^n.\iR:\rAN. The connnittee will be in order.
(Present at the convening of the session were Senators McClellan,
Ives, McCarthy, ]\Iundt and Goldwater.)
The Chairman. The Chaii- will again remind the spectatoi-s present
that you are guests of the committee. You will refrain from ;ip[)]aud-
ing, either your npproval or disapproval.
IVe ask your full c(!operation in order that we may keep order, in
order that the proceedings may go along in an orderly way.
Mr. (^ounsel, are you ready to ]:>roceed '.
Mr. Kennedy. Yes, ]Mr. (^haiiman.
TESTIMONY OF DAVE DECK. ACCOMPANIED BY HIS COUNSEL.
ARTHUR D. CONDON, DAVID FOBS, AND KENNETH SHORT—
Resumed
Mr. Kennedy. I was discussing with you this morning about the
$85,110.92 which Avas the money taken from various union treasuries
to pay some of your persomi.l bills. Do vou want to make anv connnent
on that?
(The witness consulted with his counsel.)
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitvition. Further I decline to answer because I refuse to
give testimony against myself and invoK-e the foui'th and fifth amend-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1539
nients uiul further because the question is not relevant or pertinent to
the investigation.
Senator McCarthy. Could I a,sk a question there?
The Chairman. The Chair overrules the objection on the ground
of lack of jurisdiction of this connnittee and on the grounds that the
question is not relevant or material to the subject nuitter of the inquiry.
Senator McCarthy. Could 1 ask a question there, Mr. Chairman?
The CiiAiRMAX. Senator McCarthy.
Senator McCarthy. Is there any tribunal before ^yhich you would
give that information 't
(Tlie witness consulted with his counsel.)
Senator Mc(1vrthy. That is the alleged misappropriation of tens
of thousands of dollars. Is there any tribunal at all, a grand jury
or a court ?
Mr. Beck. Sejiator McCarthy. I nnist decline to answer that ques-
tion for the same reason that I just gave you. I will read it again
if you desire me to do so.
Senator Mc(yARTHY. You need not read it again. In other words,
you refuse to tell us whethei- or not there is any tribunal in the country
before which you would give an accounting of this alleged misappro-
[)riation of laboring men's money?
(The wit)iess consulted with his counsel.)
]\Ir. Bkck. The ajiswer that I gave you, Senator McCarthy, on
advice of my counsel, is the answer I give you now.
Senator ^IcC'arthy. Mr. Beck, do you not think that the laboring
man who works rather hard for his money, some of them with large
families, iire entitled to know what happens to the money that they
pay into the mi ion cotfers?
'J'hat is whether it is stolen, misappropriated, and what happens
to it. Are they not entitled to that information ?
(The witness consulted with his counsel.)
Mr. Bfxk. Yes, I very definitely think they are entitled to know
that and under our constitution I think that tliere is ways and means
they definitely can determine it, with the rights of appeal in the courts,
whei-e you have cross-examination of witnesses and the I'ights to face
your accusers and rules of evidence to apply and under those condi-
tions, I think very definitely they can.
Senator McCarthy. Then under your constitution, would you an-
swer the question that counsel has just propouiuled to you?
Mr. Beck. Senator McCarthy, I^ill answer this way: That I am
a layman and I am not an attorney. I am answering your questions
in order to positively and definit^-ly protect myself under the fifth
ameudnient as to my legal and constitutional rights.
Senator McCarthy. Mi-. I^eck, you have just told me that the la-
boring man was entitled to know where his money went. I tliink we
both agree on that.
Ml'. Beck. I answered youi- question fully on that.
Senator McCarthy. I ask you now if there is any tribunal either
set up by labor or otherwise before wliich vou would appear and an-
swer wliat happened to the $85,119.02.
Mr. Kennedy. For his personal use, other than the amount I men-
tioned this morning, Senator McCarthy.
Mr. C()ND()N. Senator McCarthy, I believe the wa}- you phrased
the question makes it irrelevant.
1540 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McCartht, I would rather hear from the witness. 1
think it is very relevant for a workingman to know where his money
goes and I want to know whether Mr. Beck would, before any tribunal,
a labor investigating tribunal, congressional committee, grand jury or
court — is there any place where you would tell how that money was
spent and who misappropriated it?
Mr. Beck. Senator McCarthy, I have answered it. I have told
you that I am a layman and I am not a legal luminary, and I am
following advice of my counsel and I am going to protect my consti-
tional and legal rights. Certainly, in this great Government of ours
under its judicial structure there is most certainly all of the facilities
in the world to see that Dave Beck or any other individual that may
be charged in the commission of an overt act by any of om- members
or any overt act of Government through its judicial processes, can be
brought to the point of testifying in connection therewith and to do it
in a judicial atmosphere with the right of cross-examination and the
right to face his accusers, and the right of testimony to be given under
the rules of evidence in a court.
Now, my answer to you is that I have completely answered.
Senator McCarthy, May I say that you say a judicial atmos-
phere.
Mr. Beck. That is right.
Senator McCarthy. Do you object to the atmosphere here? You
have not been abused, and you just have been asked questions, civil
questions, is that right ?
Mr. Beck. Senator McCarthy, I certainly have not been abused up
to now and I have the greatest respect and admiration for the com-
mittee and the United States Senate. I emphasize to you that I am
a layman and I am not a legal luminary and I am carrying out the
advice of counsel and I am carrying it out to protect my legal rights
and constitutional rights.
It is just the same as if I hired a doctor, I would carry out his rec-
ommendations to me.
Senator McCarthy. I do not want to argue this point, Mr. Beck,
with you indefinitely and take up the time of the committee, but you
said that the working man was entitled to know where his money
went. Now, you have been accused of having misappropriated a vast
amount of money. I just ask you the simple question: Is there any
body before which you would appear and give this evidence? You
are now before the United States Senate. The Senate voted unani-
mously to bring in individuals who were accused of misconduct. You
thumb your nose at the Senate, and I wonder if there is any other
body before which you would appear and give that information.
Mr. Beck. Senator McCarthy, let me correct you right now, that
I am not thumbing my nose at this committee, regardless of the state-
ment you make. I am anxious to cooperate with this committee, and
there can be differences of opinion between you and I. You aie en-
titled to yours as a citizen; I am entitled to mine. I contend that
under our judicial system, in the commission of any alleged overt act
there is the machinery within the Constitution that can determine
and adjudicate these questions with justice to all, and in a judicial
fitmosphere to do it where you have the opportunity to face your
accuser, where rules of evidence in the court apply, where an oppor-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1541
tiinity is given to your counsel for cross-examination, and it is in that
atmosphere that I preferably prefer to do it.
In the meantime I am emphasizing yon are an attorney and most of
the committee are attorneys and I am a layman. I am on advice of
my counsel exercising constitutional rights to protect me as a citizen
and to see to it that I do have an opportunity to answer and it is for
that reason that I am invoking the fifth amendment, to do it in a court
of law under the rights of cross-examination faciiig the accuser and
the rights of testimony and et cetera.
Senator McCarthy. You talk about facing your accuser, Mr. Beck.
Your accusers are your own books and your own bookkeeping. That
is your accuser. Your own bookkeeping shows that you misappropri-
ated vast amounts of money which belongs to the laboring man.
Now, is there any other accuser that you want besides vour own
books?
Mr. Beck. Well, Senator McCarthy, I am delighted to go on indefi-
nitely with you on this debate, if you desire. Now, you are simply
alleging that. You have no proof of it other than you allege it. The
proof of it will come, perhaps, some day in a court of law under the
procedure I have outlined of witnesses
The Chairman. Mr. Beck, we do have proof. These are not idle
accusations. We have sworn testimony. Do you want to refute it or
do you want to continue to take the fifth amendment ?
Mr. Beck. I am going to continue to take the fifth amendment.
The Chairman. You may do that.
Mr. Beck. And to refute it when the proper time comes in a court
of law, under the procedure that I outlined of cross-examination rights
by my attorney, the right to face my accusers, and the rules of evidence
to apply.
The Chairman. Will you submit to cross-examination by your
own attorney right now, and answer the question?
Mr. Beck. I will ask my attorney on that. That is a legal question.
The Chairman. Ask him if he will ask you these questions on cross-
examination and see whether you will answer them or not.
Mr. Beck. My chief counsel, as you well know, is not even here
today.
The Chairman. I believe that is right.
Mr. Beck. Perhaps that is why you asked the question.
The Chairman. You have counsel present.
Senator
counsel is.
Mr. Beck. I do not have chief counsel here, as you well know.
The Chairman. You have counsel here of your own choosing.
]Mr. Beck. I prefer in a question of that kind, whether it be here
or in a court, or anywhere else, if that question arises that my chief
counsel have an opportunity to be with me and to determine that
question. I will take it up with him and ask him and answer you that
question after he so advises.
The Chairman. Take it up with him now. Send him a wire.
Mr. Beck. He is not here, as you well know.
The Chairman. Send him a wire and ask him if it will be all right
for you to submit to cross-examination by your own attorney.
Mr. Beck. I will be very glad to do that just as quickly as I can
locate him and do it.
1542 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McCarthy. "\^niere is your chief counsel ?
Mr. Beck. Eight here in ^Vashington.
Senator McCarthy. I have heard him mentioned so often. A^Hiere
is lie and why is he not here?
Mr. CoxDox. Those questions aie certainly irrelevant.
Senior McCartiiy. That is very lelevant, and he has been rely-
ing upon his chief counsel in refusing to answer.
I asked him the simple question: "Where is your chief counsel?"
Mr. CoxDON. Senator McCarthy, I think about this time
Senator McCarthy. I will not hear from counsel. I will hear
from the witness.
Mr. CoxDOX. Please be ])olite enough for me to finish my sentence.
I think you have observed ]\Ir. Beck is not a man to be intimidated
here.
The Chairmax. Ju.st a moment. The Chair is trying to get atten-
tion hei-e to preserve order.
Senator McCarthy. Could I ask a question there ?
The Chairman. Just a moment. Senator, ask your question and
then, if counsel wishes to address the Chair, the Chair will hear him
briefly.
Senator ]McCarj'hy. Could I ask counsel, not counsel but the wit-
ness, this question, and if you think that you are being intimidated,
tell me. Where is your chief counsel that you have been referring
to all morning?
The Chairman. Now, just a moment. Do you have any objection
to him answering where his chief counsel is, if he knows?
Mr. Condon. Xo, sir.
The Chairman. Answer the question.
Mr. Beck. First, I want to say. Senator McCarthy, that, as far as
I am personally concerned, I have not been intimidated here, and I
am not a bit fearful of being intimidated, either. I think that the
committee is made up of gentlemen and I hope I conduct myself as
such. I am not worried alxmt intimidation in the slightest degree.
Senator Duff is here in the city of Washington.
Senator McCarthy. Why is he not here with you?
Mr. Beck. rerhai)S you had better ask that of Senator Duff, be-
cause T don't know.
Senator McCarthy. I have to ask that of you.
Mr. Beck. I am telling you I don't know.
Senator McCarthy. Mr. Beck, you say that you want to consult
3 oui- chief counsel before you answer certain questions?
Mr. Beck. Senator McCarthy, you asked me a question and I said I
don't know why Senator Duff' is not here.
Senator McCarthy. Wait until I hnish. I will promise not to
interrupt you, if you don't interrupt me.
oNIr. Beck. We will agree on that right now. That is a deal.
The Chairman. Now let me suggest to all of you that we are heie on
a serious matter. If you will each observe the rules and let the ques-
tioner, the counsel, or any Senator conclude his questions, then the
Chair will try to see that the witness has an opportunity to answer.
AVe can proceed more orderly if we will all just hold our patience a
]iioment and proceed that way.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1543
Senator McCarthy. I am sure the Chair hasn't accused nie of losing
my patience. I have been trying to ask questions and to get answers.
^ly question is very simple.
The Chairman. The Chair sometimes loses his when he can't get
answers, but I try to restrain myself. Let us do the best Ave can.
Senator McCarthy. My question is this: You liave been referring
to the former Senator Duti' as your chief counsel, and you say that you
can't ansAver certain questions until you have consulted him. You
say he is here in the city of Washington. This is a very important
case, not only to you but to the country as a Avhole. I would like to
know why your chief counsel is not here, and why he is not sitting
l>eside you so that he can advise you.
Mr. Bkck. And I think that I liave told ycm at least three different
times that I do not know.
Senator McCarthy. Did you not ask him to be here.
]VIr. Beck. No, sir ; I did not ask him to be here.
Senator McCarthy. You employed him ?
Mr. Beck. I certainly did employ him.
Senator McCarthy. And was the understanding that he would be
here?
Mr. Beck. I think, with men of the character and integrity of Sena-
tor Duff, if he was supposed to be here he would be here.
The CiLviRMAX. Senator Duff", is, then, not supposed to be here.
We liave settled that, have Ave not '.
Mr. Beck. At least Senator Duff' elected not to be here, for reasons
of his OAvn, whatever they are.
Senator McCarthy. As I said this morning, I am getting aAvfully
sick of bandying about the name of Duff' as an authority for not an-
SAvering questions. I have no feeling one way or the other toAvard
Duff'. He Avas defeated Avhen he ran for the Senate and he has not
]n-acticed law, as far as I knoAv, for 25 or 30 years. I, for one, am not
inq:)ressed at all Avlien you say, 'T Avon't ansAver because Duff' isn't here
at my side.'' You sliould in a case of this importance have a hiAvyer
in Avhom you liave contidence, and I just Avonder, don't you have confi-
dence in the young man sitting beside you, that he can advise you?
Mr. Beck. I Avould ansAver your question this Avay, that regardless
of tlie fact that you emphasize, and Avhy you do it, I don't ImoAv, that
Senator Duff hasn't practiced law for 25 years, I don't know Avhether
lie has or not. I knoAv that I have great confidence in Senator Duff
and if anybody stands to lose by any inability tliat he may possess, it
Avill be Dave Beck.
Now, I am satisfied Avith Senator Duff, and I think he is eminently
qualified, and I am going to folloAv his advice to the letter. If you
disagree Avith me on it. Senator McCarthy, you have a right to your
opinion, and I have a right to mine.
Senator McCarthy. Do you plan on having your chief counsel
hei-e with you tomorroAV, for example, if we are back here?
Mr. Beck. I do not know.
Senator McCarthy. You do not know ?
Mr. Beck. I do not know.
Senator McCarthy. Do you intend to ask him to be here?
1544 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I do not know whether I shall ask him to be here or not.
I will undonbtedly discuss with him the fact that you have raised that
question.
Senator McCarthy. And will you ask him whether or not you
should answer the questions which you have refused to answer?
Mr. Beck. In my personal opinion, I will not answer the questions
that I have refused to answer under any other status than the way I
am answering.
Senator McCarthy. I say, will you ask Duff whether you should
answer the questions or not?
]Mr. Beck. I will carry out just exactly the advice that the Senator
gives me, and my associate counsel.
Senator McCarthy. Will you ask him whether you should answer
those questions ?
Mr. Beck. I will do just exactly as I have told you. I will consult
on the subject matter with my attorneys, as I have in the past, and
follow out his advice to the letter.
Senator McCarthy. Will you ask him whether or not you should
answer the questions you have refused to answer ?
Mr. Condon. Mr. Chairman.
The Chairman. Yes.
Mr. Condon. Mr. Beck has answered that question a number of
times, and the answers may not suit the Senator who asked them.
The Chairman. I do not think he has answered the question. I
think he has given an answer. Mr. Beck, will you state, or are you
willing to state, or do you want to take the fifth amendment and de-
cline to state, whether you will ask your chief counsel if you should
answer the questions that you have today refused to answer? It is
just as simple as that. Will you ask him or not?
Mr. Beck. I have stated that the subject matter has been gone over
entirely with the Senator; I have his advice and I am proceeding to
follow it out, and I shall continue to do so.
The Chairman. That does not answer the question. The question
is. Will you ask Senator Duff whether you should answer the questions
that you have refused to answer today?
Mr. Beck. It is my personal opinion that there is nothing further
to ask Senator Duff in that regard.
The Chairman. Then why don't you say that?
Mr. Beck. I have no objections to bring up, as I told Senator Mc-
Carthy a few minutes ago, I would bring that subject matter to the
attention of Senator Duff.
The Chairman. Why don't you answer it and just say "No," you
don't intend to, and that will end it.
Mr. Beck. That is not the proper answer, and so I am not going
to make that answer.
The Chairman. Then you haven't answered the question then.
Mr. Beck. You mean to say the only proper answer is "No" ?
The Chairman. No.
Mr. Beck. That is what you just said.
The Chairman. Well, say "Yes" then.
Mr. Beck. I won't say either.
Senator McCarthy. Mr. Beck, I am going to ask the chairman to
order you to answer that question unless you take the fifth amendment
on it. It is a simple question, and it is, will you ask this counsel you
IMPROPER ACTIVITIES IN THE LABOR FIELD 1545
have been referring to, Mr. Duff, whether you should answer the
questions that you have refused to answer today. You can answer
tliat ''Yes*' or "No." If you refuse I am going to ask the Chair if
he will order you to answer that question.
Mr. Condon. Mr. Chairman.
The Chairman. Mr. Counsel.
Mr. Condon. I recognize the question is a comparatively minor one,
but at the same time it is irrelevant, I insist, and I move it be stricken.
The Chairman. Well, the Chair realizes that it is not a question of
any great importance. It does not go directly to the merits of the
things at issue here. But the witness has taken the position that he
will not answer certain questions until he can consult with his chief
counsel. The Chair will have to rule that the question in that light
is proper.
(Witness consulted with his counsel.)
The Chairman. The committee is undertaking to get information
that it thinks this witness has, has personal knowledge of, and certain
questions are asked him and he takes the fifth amendment, and he
makes other objections to answering the question.
Therefore, on that basis, he has stated he would not answer one
question until he can consult with his chief counsel, or one or more
questions. So therefore I think it is quite proper for him to advise
the committee whether he will consu],t with his chief counsel or not
with respect to answering those questions, so that the committee can
determine the good faith of the witness in interposing the objection
or the alibi or the reason why Re doesn't want to answer the question.
I think it is quite proper for him to answer.
Mr. Beck. I certainly don't want to delay the time of the committee
in the slightest degree and I am perfectly willing to take up with
Senator Duff all of the questions that you have asked me, and ask him
if he wants me to answer them in any different way than I have
answered them.
Will that be satisfactory to you ?
The Chairman. Thank you very much. That is the most coopera-
tion you have given us so far.
Mr. Beck. We can agree on that. I have tried very much to be
cooperative.
The Chairman. I think that answers the Senator's question.
Senator McCarthy. It does. And, Mr. Chairman, the reason I
asked the question is because the witness has been citing all morning
both the Constitution and Duff as his reasons for not answering.
The Chairman. That is the reason the Chair held that he should
answer it.
Mr. Beck. Senator McCarthy, you could not have any personal
disagi^eement with Senator Duff, have you ?
Tlie Chairman. Just a moment. Senator Mundt, you had a
question ?
Senator McCarthy. I have no personal disagreement with him.
Mr. Beck. That's fine. Good.
Senator Mundt. Before you got into the present line of questions
and answers with Senator McCarthy, he was asking you about your
position in a question very similar to the one I asked you this morning,
as to whether or not you felt that the dues-paying members had a
1546 IMPROPER ACTIVITIES IN THE LABOR FIELD
right to know wliat was being done with their dues by their top
union officials.
Now, if I paraphrase your answer improperly, you correct nie, but
I think that you answered him as you answered me, by saying you felt
that the dues-paying members had a perfect right to know what was
being done with their dues by their top officials, but that the constitu-
tion of your international organization provided them with the means
whereby a member who felt he was aggrieved could call upon you to
make full disclosure.
Am I correct in that summation of your answer ?
Mr. Beck. One hundred percent correct, with the added status that
if they are not satisfied with the machinery that is yjrovided in their
International constitution of the teamsters, they have the right then
to go into the courts of the land and proceed thi'ough them clear up
to the United States Supreme Court, of course.
Senator Mundt. That is correct, and 1 remember that addition that
you made.
So I will ask you this question : Do the bylaws or does the constitu-
tion of the International set up a fund that Mr. John C. Truckdriver
can utilize in the employment of a lawyer to go to the very considerable
expense of taking a case of that kind into court or bringing it up before
the International board ?
Mr. Beck. I would answer that question this way : That in my
personal opinion many of the courts of the land do not give the in-
dividual citizens that protection either, and I don't get that protection.
You ask me this morning if I would pay my counsel, and I said I
certainly would from my own money. To that degree, there may be
some contention, but if he was confronted with coming into any court
he AYOuld be confronted with the same thing. Although he could come
into our International convention and set forth the reasons and the
convention could of course carry his expenses or the general executive
board.
Senator Mundt. It is a pretty expensive process, of course, with
the individual teamster or the truckdriver to take a case of this kind
into court. Because after all, he is involved just to the extent of his
own personal dues. If it cost him a great deal of money, I wondered
if perhaps there was a fund set aside in your oi'ganization whereby an
individual who thought he was aggrieved could enq:>loy a lawyer to
take it before the proper tribunal.
I understand that your answer is in the negative.
Mr. Beck. My answer definitely is in the negative, but I emphasize
my answer, also, by the fact that no such machinery is available to
individual citizens either when they go into the courts. It is just
one of those unfortunate things, I suppose.
Senator Mundt. I realize that you answered the question this
morning, and you said you were paying out of your personal funds
your attorneys in this particular case.
Mr. Beck. Yes, sir.
Senator Mundt. Now let me ask this question : Is it possible for
John C. Truckdriver, wlio ]>ays the due and belongs to the union,
to borrow money without paj^ing interest from the funds of the
union in order to engage an attorney for that purpose?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1547
Mr. Beck. I want to answer you very truthfully, that I do not
know the answer to that. Undoubtedly, in many, many unions, he
could take that matter to the floor of his organization, and it cer-
tainly would be witliin the province of lettijig him to do if the ma-
jority agreed to it.
Senator Mundt. Let me ask the question within the purview of
your own personal knowledge.
Is it possible for John C. Truckdriver to borrow money without
paying interest from the international organization for the purpose
of engaging a counsel ?
Mr. Beck. In my opinion, under our constitution, it is not from the
international, but from the local unions it is.
Senator Muxdt. Xow may I ask you whether it is possible for gen-
eral officers of tlie international union to borrow money without
paying interest for personal purposes ?
(Witness consulted with his counsel.)
Mr. Beck. JMy counsel advises me, and in accordance with that
advice I must decline to answer the question because this connnittee
lacks jurisdiction or authority under articles I, II, and III of the Con-
stitution; further, I decline to answer because I refuse to give testi-
mony against myself, and invoke the fourth and fifth amendments;
and further, because the question is not relevant or pertinent to the
investigation.
The CHAiEiiAiSr. Tlie Chair overrules all of the objections, and
without objection from the committee the Chair will order and direct
the witness to answer the question.
Mr. Beck. I can read it again, or read this into the record.
The Chairman. You are ordered to answer, and you need not read
that again. You can just say you decline to answer, or read it if you
like.
Mr. Beck. I prefer to read it for the record.
The Chairman. All right.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; and further, I decline to answer because I refuse to
give testimony against myself, and invoke the fourth and fifth amend-
ments; and further, because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair has already overruled all of those ob-
jections, and the order still stands that you are ordered and directed
by the committee to answer. Until you do give a responsive answer,
that order remains in effect.
Senator INIundt. I would like to point out to the committee and to
Mr. Beck himself that he cannot possibly plead self-incrimination to
the question that I asked, because it did not refer to Dave Beck, and
it simply asked whether or not general officers of the teamsters union
were given a privilege which was denied to the duespaying members,
namely, to borrow money for personal purposes without paying in-
terest. There could not be any incrimination by saying, "Yes," and
there could not be any incrimination involved by saying "No,'' and
so I submit that you are making a capricious use of the fifth amend-
ment if you rely on that in response to my question.
154S IMPROPER ACTIVITIES IN THE LABOR FIELD
(Witness consulted with his counsel.)
The Chairman. The Chair has ruled accordingly, and let us pro-
ceed.
Senator Mundt. I would like to see whether Mr. Beck in recon-
sideration might want to answer that question,
Mr. Beck. Of course you are making a statement, and not a ques-
tion now.
Senator Mundt. I will ask the same question over then, with the
statement as a background. I ask you whether or not the general
officers of the international organization can borrow money for per-
sonal purposes from the union funds without paying interest.
(Witness consulted with his counsel.)
Senator Mtjndt. I use the word "officers'' plural, and not singular.
Mr. Beck. I will have to answer you on advice of my counsel, with
the language that I just gave you, and I will read it again so the
record is clear on it.
I must decline to answer the question because this committee lacks
jurisdiction or authority under articles I, II, and III of the Con-
stitution; and further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments; and further because the question is not relevant or pertinent
to the investigation.
Senator Mundt. It looks to me as if you are reaching out to try to
bring yourself into some area of self-incrimination because I never
mentioned your name, and I talked about general officers. I don't
see how in the world you can rely on the fifth amendment when I
ask you a question about union policy. I am simply trying to estab-
lish 'whether or not under your jurisdiction as international president,
there are rights and privileges to borrow union funds without paying
interest which are denied to the union members who contribute the
funds.
Mr. Beck. Senator, let me say — just a minute — let me answer you
this way — that I am following advice of my counsel and I am a lay-
man, and I am not a legal man.
Senator Mundt. I am a layman, and I am not a legal man either,
so we ought to get along all right and we ought to understand each
other.
Mr. Beck. As far as I am concerned, I intend to follow out the legal
advice given me by counsel. If I err on my part on that, it will only
be because my counsel errs.
Senator Mundt. As one layman to another, just as in discussing
this on television or radio which is comprised primarily of laymen,
let me say that I cannot understand why in the world unless there is
some reason of guilt on your part you would not answer a simple
question about union policy such as I have propounded to you. I was
not trying to involve you in any way. I was talking about general
officers of the teamsters organization which you head-
Mr. Beck. Let me answer you again. Senator, that you may be en-
tirely correct, and I do not Imow. I emphasize to you that I am fol-
lowing the advice of legal counsel, the same as if I heard a doctor
and T intend to do it, because I do not know where such questions may
lead or anything else. I follow the advice of counsel, and that is
what I intend to do.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1549
The Chairman. All right, maybe we can go on to some of the other
pertinent items.
Mr. Kexxedy. Mr. Beck, you say that you are paying your own at-
torney, is that correct '.
Mr, Beck. That is correct.
Mr. Kennedy. Tell me this. If you are paying your own attorney
now, were you paying your own attorney in 1952, 1951, and 1950?
Mr. Beck. 1 must decline to answer the question, because this com-
niittee lacks jurisdiction or authority under articles 1, IT, and III of the
Constitution; further, I decline to answer because I refuse to give
testiuiony against myself, and invoke the fourth and lifth amendments ;:
and further because the question is not relevant or pertinent to the
investigation.
Mr. Kennedy. Tell me this : Is there any provision in your coiL-^titu-
tion, Mr. Beck, that permits tlie general president to have his gardener
paid by union funds ?
Mr. Beck. 1 must decline to answer the question, because this <'oiu-
mittee lacks jurisdiction or authority under articles 1, II, and III of the
Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and hfth amendments;
and further because tlie question is not relevant or pertinent to the
investigation.
The Chairman. The Chair will rule again. The objections based
upon, and the refusal based upon, the jurisdiction of this connnittee
are overruled. This comuiittee does have jurisdiction. It will pursue
that jurisdiction. As to the witness taking the fiftli amendment, of
course that is a privilege, but it is not a dut}' .
Mr. Condon. Mr. Chairman?
The Chairman. Yes, sir.
Mr. Condon. WoukI it be possible to conserve time, that A\hen yoo
have a series of questions such as you are engaged in now, that Mr.
Beck, when he answers witli the same answer that he gave previously^
could say "I decline on the grounds stated in the previous answer" '.
The Chairman. Well, there might be some question about it. I
would certainl}^ like to expedite it. It looks like we are here for a
pretty long session. We are going to keep the record straight as far
as we can.
Senator McCarthy. I would think, Mr. Chairman, in order to save
time, if he makes it clear that he is refusing on the grounds that he
recited previously, that would save time and would cover the situation.
The Chairman. The Chair will be governed as we proceed. 1 think
it is unnecessary for me to say again, I have said it and it continues
throughout, any challenge of this committee's jurisdiction to inquire
into your transactions with your union, or any other personal trans-
action that might in any way be related to your position as head of
the teamster.s uniou, as general president of that international organ-
ization, comes within the jurisdiction of this committee, and the Chair
so rules now and will rule each time that question is raised.
(At this point Senator Ervin entered tlie hearing room.)
The Chairman. The record may stand that that is overruleiL That
objection is denied now and continuously hereafter.
Proceed.
Mr. Beck. Mr. Chainnan. I v,ould just like to say
1550 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. That position, that ruling, has been approved, the
Chair maj' say, b}' unanimous vote of the committee present this morn-
ing. Let us get down into some of tliese other things and see if we
can get any information.
Mr. Kennp^dy. Just on the question of use of union funds, I was
wondering if, for instance, tlie union paid for any of your rugs for
your home, approximately $1,500 or $2,000 worth of i-ugs for your
home.
Mr. Beck. I nnist decline to answer the question, because the com-
mittee lacks jurisdiction or authority under article I, II, and III of the
Constitution; further, I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments;
and further because the question is not relevant or pertinent to the
investigation.
Mr. Kennedy. How about Sulka ties and shirts, Mr. Beck?
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution : further. I decline to answer l)ecause I refuse to give
testimony against myself and invoke the fourth and fifth amendments;
and, further, because the question is not relevant or pertinent to the
investigation.
Mr. Kennedy. What about union funds to buy a $14 custom-made
tie for you ?
Mr. Beck. I would like to ask the chairman one question here. Per-
sonally I have arranged that I can be here for the next 2 weeks, and
I am perfectly willing to stay here and read these answers without
any abbreviation of any kind or character. [ am perfectly willing to
do' that.
I would like the (^hair to determine whether or not I should answer
in any shorter iovu\ in order to please tlie desires of the committee.
But, personally, I an' ready to ]-ead the full outline that I have here
each and every time, or I am ready to abbreviate it, either one.
The Chairman. The Chair will say that no one is very happy to
have to do this. If we could get the truth, I am sure the witness realizes
that, we Avould not have to l)e here too long. So I am sorry if there
may be some inconvenience of the witness and to this committee.
Mr. Beck. None at all, not to this witness.
The Chairman, l^ut we have a duty to perform and we are going to
pursue it.
At different times you may read the answer. You may also simply
say you invoke the fifth amendment. But the Chair will ask you eacli
time you do whether you honestly believe that a truthful answer might
tend to incriminate you. because I do not think you have a right to in-
voke the fifth amendment unless you state under your oath that you
honestly believe that if you answered trutlifully, such answer might
tend to incriminate you.
Mr. Beck. Well, for the record, Senatoi', you may be certain that
I am exercising the fifth amendment because my counsel advises me
that it is absolutely essential, and I do invoke it after that upon my
cAvn agreement that it is necessary.
The Chairman. That it is necessary for what?
Mr. Beck. In order to protect my rights, my legal and constitu-
tional rights-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1551
The Chairman. You iiuiy invoke it just because you want to invoke
it, and that is your right to do so. But the Chair is ruling that you
haA^e no right to invoke it, no legal right to invoke it and have it
recogT^ized, unless you can state under your oath that you honestly
believe that a truthful answer, if given, might tend to incriminate you.
Mr. Beck. I certainly do that, and I will read it right into the
record, that there is that possibility, and I emphasize that it might.
The Chairman. All right.
Now can we proceed ?
Senator McNamar^v. Mr. Chairman?
The Chairman. Senator McNamara.
Senator McCarthy. Mr. Chairman, before you leave that subject,
I do think w^e could save a lot of time
Senator McNamara. Mr. (Chairman, do I have the floor?
The Chairman. The Chair has recognized Senator McNamara.
Will you yield to the Senator from Wisconsin ?
Senator McNa^iara. 1 will be glad to yield.
Senator McCarthy. I was going to suggest that the Chair, instead
of going through this long rigamarole all the time, it would be proper
for liim to say 'T refuse to answer for the reasons previously stated."
We all know what the reasons were. He has read that.
The Chair^can. I have said that. That is the same as the order
of the Cliair.
Senator McNamara. If I had any idea why I was yielding, I would
liave refused to yield. I do not think that the committee should
decide liow the witness should answer in any manner, either in limit-
ing him or abbreviating his answers. I tliink he should be fully
responsible for his own answers without passing on the responsibility
in any manner to the connnittee. I hope you will hold him respon-
sible for his answers in his own manner.
The Chairman. That is what the Chair has been trying to do.
Senator Ervin. I want to say, Mr. Chairman, that I concur wholly
in the observation of Senator McNamara. I think the witness should
make his own answers, whether they are long or whether they are
short.
Mr. BiocK. It is perfectly satisf actoiy to me. That is why I brought
it up.
The Chairman. Senator Goldwater?
Senator Goldwater. I have a few ciuestions here that I think pos-
sibly you can answer.
You were referring this moniing to your constitution of the inter-
national brotherhood. On page 21, section 9, of article 6 of that
constitution, it says :
The general president shall employ an expert public accountiint ti> audit the
books of the general secretary-treasurer on the 1st of April, July, October, and
•January.
Has that been done ?
Mr. Beck. To the best of my knowledge, it has, Senator.
Senator GoLDw.'iTER. You are the presiclent?
Another part of this constitution says, in section C of article 6 :
The general president shall devote his entire time to the service of the inter-
national brotherhood.
1552 IMPROPER ACTIVITIES IN THE LABOR FIELD
Would you not think you would kiunv if an audit had been made on
Die 1st of April, July, October, and January?
Mr. Beck. Senator, let us be fair, now. I said to the best of my
knowledge it has been done. There is a possibility that it might occur
o (u- 4 days before or after 1 of those dates j^ou read.
Senator Goldwater. We recognize that.
Mr. Beck. That is right. With that understanding, it is my dertnite
opinion; yes, that it has been done.
Senator Goldwater. Further in this — and I am trying to supply
the record with some sections of this constitution that will give us
some basis to judge your remarks — on page 22, section 2, of article 7,
it calls for the general secretary-treasurer being bonded. Has that
been done?
Ml'. Beck. To the best of my knowledge it has been done.
Senator Goldwater. Well, there again, that is one of your duties,
to know that. Plas the secretary-treasurer been bonded ?
Mr. Beck. Well, I certainly want to answer truthfully. I can only
answer truthfully by saying to the best of my knowledge it has I)een
done, but I wouldn't swear that it has been done. Therefore. I would
have to answer the way I did.
Senator Goldwater. A little bit further, section 4 of article 7 reads
in part as follows:
The general secretary-treasurer shall publish a financial statement and furnish
the secretary-treasurer of each local union with a copy of same together with
a statement of an expert accountant showing the total amount of receipts and
disbursements with the cash balance on hand.
Has that been done?
Mr. Beck. I am quite certain it has been done. To the best of my
knowledge; yes. With the same reservation, that it may be delayed,
or something.
Senator Goldwater. Then Senator Mundt's John Q. Truck Diiver
could go to his local and find out the financial condition of the
international ?
Mr. Beck. Very definitely. He could not only do that, but it is
])ublished in the monthly magazine, so it goes right into his liome.
He don't have to go to his secretary-treasurer.
Senator Goldwater. That was an interesting point. I noticed it
was not sent to each union member, it was sent only to the local.
Mr. Beck. No.
Senator Goldwater. It is sent to the union member at his request?
Mr. Beck. Yes. Our circulation to the union membership, I think,
right now is in excess of 1,300,000 monthly. It goes right into his
liome.
The Chairman. Mr. Beck, would that financial statement reflect
loans that you secured or any moneys that you might have taken out
of the treasury?
(The witness conferred with his counsel.)
Mr. Beck. I don't think I have to use that.
You are asking now about what the Senators have been questioning
me on as it pertains to the international union.
The Chairjvian. Yes.
Mr. Condon. Wait a minute. You better repeat the question,.
Senator.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1553
The Chairman. This publication that you said that carries this
information as to financial reports showing the financial status of
tlie international iiiiion, showing its receipts and its disbursements,
would such a statement reflect loans made to you or loans made to
othei; oflicers of the union, or money that they may have taken out of
tlie tieasury of the union?
Mr. Beck. Of the international union you are asking now?
'J'he Chairman, Yes.
Mr. Beck. It most certainly would.
The Chairman. They would reflect it?
^Ir. Beck. Yes.
The Chairman. How about the Western Conference of Teamsters ?
Mr. Beck. The statement issued by the international union relative
ro the funds and properties of the international union, is confined to
the interuational union and does not encompass either local unions,
joint councils, trade divisions, or conferences.
The Chairman. Is there any way that an individual member could
find out whether you had a loan from the joint council 28 ?
(The witness conferred with his counsel.)
Mr. Condon. I am sorr}'. Senator, but would you repeat the ques-
tion again?
The Chairman. I believe the witness understands what I mean.
Would there be any publication, any report, that would reflect to
the individual member of the union a loan that you or other general
ofKcers might receive from joint council No. 28 ?
( The witness conferred with his counsel.)
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. The Chair overrules that answer, overrules your
objection, and orders you, Avith the consent of the committee, to answer
the question.
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments;
and further b-ecause the question is not relevant or pertinent to the
investigation.
The Chairman. The Chair orders and directs you to answer the
question, without objection from other members of the committee,
and then I will proceed to the next question.
(No response.)
The Chairman. If you took money out of the union treasury while
you were president of the western conference, if you took money out
of the western conference treasury or out of joint council 28 without
making any record of it as a loan, if you just took it out for your own
use and benefit, would there be any record or financial report that
would so inform the members who had paid the money into the
treasury ?
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
89830—57 — pt. 5 4
1554 IMPROPER ACTIVITIES IN THE LABOR FIELD
the Constitution; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and lifth amend-
ments; and further because the question is not relevant or pertinent
to the investigation.
The Chairman. You are ordered and directed to ans^Yer the ques-
tion.
(No response.)
The Chairman. Then the Chair asks you, do you think it is not
relevant to unionism for the members to know whether the officers are
tilching the treasury? Do you think that is not relevant? Do you
honestly believe that, and you are testifying to that under oath ?
(The witness conferred with his counsel.)
Mr. Condon. That isn't what he said, Mr. Chairaian.
The Chairman. I asked him. He can answer what I asked him.
Do you honestly believe that, sir, that it is not relevant ?
(The witness conferred Avitli his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amendments;
and furthei- because the question is not relevant or pertinent to the
investigation.
The Chairman. All of which is overruled by the Chair. You are
ordered and directed to answer the question.
(No response.)
The Chairman. Senator Goldwater, do you have anything?
Senator Goldwater. Mr. Beck, to get back to the constitution for
just a moment, are you a trustee?
Mr. Beck. No ; I am not a trustee.
Senator Goldwater. You are not a trustee.
It says in section 1 of article 8, that the trustees shall audit the books
of the general secretary -ti-easurer on the first of April and October each
year and report their findings immediately to the general president,
and the general president shall, in turn, report to the general executive
board. Have the trustees reported the condition of the books to you ?
Mr. Beck. Yes ; they have. Senator.
Senator Goldwater. Would their findings reflect in any way moneys
that you might have borrowed or removed from the international
treasury ?
(The witness conferred with his counsel.)
jilr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II. and III
of the Constitution ; further I decline to answer because I refuse to
give testimony agahist myself, and invoke the fourth and fifth amend-
ments; and further because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair overrules the objections and orders the
witness to answer the questions, without obj'^ction from the member?
of the committee.
(No response.)
Senator Goldwater. Mr. Beck, I have one more question.
I think it was Sunday before this last one that you appeared on a
television show. I believe it originated in Seattle.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1555
Mr. Beck. Last Siiiuiay, at Tacoma.
Senator Goldwater. During the course of that show — I did not
see it, unfortunately — 1 understand that during the course of it you
reported that you had paid back to the union treasury an amount of
money, I forget what the amount was. It seems to me that it was
$300,000. I might be wrong. It was between three and four hundred
thousand dolhirs, I am informed. You went further to state that you
had paid no interest on this money. You tokl tens of millions of people
all over this country about that money.
Can you not tell this committee here what fund that came from?
(The witness conferred with his counsel.)
Mr. Beck. Of course. Senator, what I said on television is a matter
of i-ecord, but in direct answer to your question, in order for the
record, I must decline to answer the question because this committee
lacks jurisdiction or authority under articles I, II, and III of the
Constitution; further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments;
and further because the question is not relevant or pertinent to the
investigation.
The Chairman. The Chair orders and directs you to answer the
question, without objection from the committee.
(No response.)
Senator Goldwater. Now,, ]SIr. Beck, that is a rather unusual
position for a mature, intelligent man to take, who has admitted to
The people of the United States over television, and subsequently
through the newspapers, that he has returned some money to his
union in the amount of between three and four hundred thousand
dollars, on which he had paid no interest. It is no secret. There are
millions of people in this country that would like to know how you
go about getting money at no interest. There are millions of people
in the union movement who would like to know if there are possibly
others who are enjoying this same nontax money, tax-free money, and
interest-free money.
Can you not tell us and complete an answer that you started to
give the American people just a few days ago? Where did you get
that money?
(The witness conferi-ed with his counsel.)
(At this point, Senator Kennedy entered the hearing room.)
Senator (roiiDWATER. John Q. Truck Driver might want to open
up a hot dog stand. He might not want to drive a truck all his life.
1 think he would like to know from the boss where the money tree
is so he can go and tap it, you see.
Mr. Beck. I must decline to answer the question because this com-
mitte lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
Testimony against myself and invoke the fourth and fifth amendments;
and, further because the question is not relevant or pertinent to the
investigation.
Senator McNamara. Mr. Chairman?
Senator McCarthy. Mr. Chairman ?
The Chairman. Senator McNamara requested the floor first, and
then the Chair will yield to Senator McCarthy next.
Senator McNa.aeara. Mr. Chairman, since there has been consider-
able discussion about the moneys used for jjersonal purposes, and the
1556 IMPROPER ACTIVITIES IN THE LABOR FIELD
manner in which it was annnounced at the time, I have obtained
a transcript of the program Face the Nation on tlie CBS Television
Network, March 17, 1957. Referring to page 11, I wonkl like to ask
the witness some qnestions about this.
The Chairman. Page what ?
Senator McXamara. Page 11.
The Chairman. All right.
Senator McNamara. Mr. Xovins is asking the question and he saj's :
I would like to ask you, sir, have you ever borrowed any money from the
teamsters union?
Mr. Beck. I most certainly have borrowed a great deal of money from the
teamsters union, and also from banks and insurance companies.
Mr. NoviNS. How much money have you borrowed from the teamsters?
Mr. Beck. I would estimate I have borrowed over the last 10 years from the
teamsters organization maybe three or four hundred thousand dollars, every cent
of which has been repaid long before this conuuittee ever went into effe't.
Mr. NoviNS. This is in addition to the money that you borrowed elsewhere,
you say, from insurance companies?
Mr. Beck. Yes. I borrowed hundreds and hundreds of thousands of dollars
more than that from banks and insurance companies.
Mr. Madigan. Did you pay any interest to the union for the money yoa
borrowed ?
Mr. Beck. In the union I paid no interest for the reason that the — I went and
received the unanimous approval of the board for the money, and the money
was all in commercial banks not drawing interest, so they elected that there wa&
to be no interest paid, but personally, if they should change their opinion on it,.
I wouldn't object for 1 second.
I would like to ask the witness, since he made this statement publicly
on a nationwide broadcast, were these true answers or were they not?
(The witness conferred with his counsel.)
Mr. Beck. The broadcast, of course, speaks for itself. Relative to
a question, I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amendments :
and further because the question is not relevant or pertinent to the
investigation.
The Chairman. The Chair overrules that and orders you to answer
the question.
(No response.;
The Chairman. Did I understand you to say that the broadcast is
correct, Avhat you said^
(Tlie witness conferred witli his counsel.)
Mr. Beck. I don't know that. I said the broadcast speaks for
itself.
The Chairman. Did you make that statement on the broadcast?
Mr. Beck. I say the broadcast speaks for itself.
The Chairman. You will not admit you made it or deny that you
made it?
Mr. Beck. I say the broadcast speaks for itself.
The Chairman. Are you taking the position that you Avant to broad-
cast that to tlie American people over television and radio, and then
a week later. 8 or 9 days later, come here before this committee and
take the fifth amendment on it? Is that the position? Is that the
awkwai'd ]>osition or situation that you want to place yourself in?
Mr. Beck. I say the broadcast speaks for itself.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1557
Senator McCaetiiy. May I ask a question?
The Chairmax. Just a moment, Senator McCarthy,
I asked that question to see the sincerity of this witness, who goes
out and makes a statement on a television broadcast to millions of
people and a week or 10 days later when he is asked to verify it here
under oath he declines to do so on the grounds that it might incrimi-
nate him.
Proceed, Senator McCarthy.
Senator McCarthy. Do you, Mr. Beck, want to honestly tell us that
if you were to answer Senator McNamara's question whether or not
you made that statement over the air, that merely affirming or denying
whether you made it might tend to incriminate you ?
(The witness conferred with his comisel.)
yir. Beck. I liave stated, Senator McCarthy, that the broadcast
speaks for itself- But in answering your question, and in order to
protect my constitutional and legal rights, I must decline to answer
the question because this committee lacks jurisdiction or authority
under articles I, II, and III of the Constitution; further, I decline
to answer because I refuse to give testimony against myself and invoke
the fourth and fifth amendments ; and further because the question is
not relevant or pertinent to the investigation.
Senator McCarthy. I have just one simple question. Do you think
if you answered Senator McNamara's question as to whether or not
yon made that statement, whether the statement was true or not, that
such an answer might tend to incriminate you ?
(The witness conferred with his counsel.)
Mr. Beck. I repeat to you that the broadcast speaks for itself.
But in answer to the question, and in order to maintain my constitu-
tional and legal rights, I must decline to answer the question because
this committee lacks jurisdiction or authority under articles I, II,
and III of the Constitution; further I decline to answer because I
refuse to give testimony against myself and invoke the fourth and
fifth amendments ; and further because the question is not relevant or
pertinent to the investigation.
The Chairman. The Chair wishes to rule that the question is rele-
vant, that this committee does have jurisdiction ; and unless you can
truthfully say under oath that you honestly believe answering the
question might tend to incriminate you, then, in my judgment, you
stand in contempt of this committee, unless you can state under your
oath
Mr. Beck. I state under my oath that it might. I emphasize, it
might.
The Chairman. Do you state under your oath that you honestly
believe that it might ?
Mr. Beck. That it might. Might. I emphasize might; yes.
Senator McCarthy. Mr. Beck ?
Mr. Beck. Yes, Senator.
Senator McCarthy. You made a broadcast and you told the peo-
]~>le of the country certain things. Senator McNamara merely read
from one page of it. He asked whether or not that was true or false.
The people of this Nation — they are watching this television — would
like to know whether you lied on the air when you were not under
oath and whether you are afraid to answer now that you are under
oath.
1558 IMPROPER ACTIVITIES IN THE LABOR FIELD-
(The witness conferred with his counseL)
Senator jMcCarthy. It is no laughing matter, ]Mr. Beck.
Mr. Beck. You haven't asked me any question. That is what I
want to know. Are you asking me a question or what? That is a
statement.
Senator McCarthy. Yes. I will rephrase it.
I think it is a waste of time.
Were you telling the truth or were you lying when you made the
statements read to you by Senator McNamara from the broadcast?
Mr. Beck. Let me answer the question this way: The broadcast
speaks for itself, and if T was lying on that broadcast, in my opinion
there is judicial procedure that can be taken against Beck for making a
misstatement over the television.
But in answer to your question, and in order to protect my consti-
tutional and legal rights, I must decline to answer the question because
this committee lacks jurisdiction or authority
Senator McCarthy. You Piced not read it. I heard it.
Mr. Beck (continuing). Under articles I, II, and III of the Con-
stitution ; further I decline to answer because I i-efuse to give testimony
against myself, and invoke the fourth and fifth amendments; and
further because the question is not relevant or pertinent to the
investigation.
Senator McCarthy. I have just one final question, Mr. Chairman.
Would you answer the ([uestions in regard to your finances before
the ethical practices committee of the AFL-CIO ?
Mr. Beck. I cannot answer that question at this time. I don't know„
Senator McCarthy. You mean you do not know ?
Mr. Beck. I don't know.
Senator McCarthy. When might you make up your mind ?
Mr. Beck. I will make up my mind when my attorneys advise me
as to whether or not tliat would be in any sense a violation or an
infringement upon my constitutional rights.
Senator McCarthy. What attorneys ?
Mr. Beck. A few minutes ago you said you were tired of lister ing
to it. It would be attorne}^ Senator Duff and his associate counsel.
Senator McCarthy. Mr. Chairman, I would like to call attention
to a rule of the committee, that a witness can have counsel present
with him to advise with him, but that there is no rule of tlie committee
which provides that he can take a day or 2 days of the Senate's time
to advise with outside counsel. Tlie rule does not go that far. If he
is not satisfied with his counsel, then he should have difl'erent counsel.
I call the Chair's attention to the fact that this is a strict violation
of the rule of the committee, relying upon counsel who is ]iot here.
The Chairman, The Chair has in no way suspended the rule, disre-
garded it, or delayed the proceedings because the Avitness claimed that
his chief counsel is not present.
lender the rules, he may have his counsel present if he desires, but
the i-ule provides that his failure to have counsel present does not
delay the proceedings. Therefore, we are proceeding.
Senator Kexxedy. Mr. I^eck, you were head of the Western Con-
feience of Teamsters at the end of 1952, were you not ?
Mr. Beck. I think that is correct. Senator ; yes.
Senator Kexxedy. What are the dues that the members must pay
to the Western Conference of Teamsters, as such?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1559
Mr. Beck. I can't answer that, Senator. I don't know as there was
any specihc dues. I really can't answer.
Senator Kennedy. How did the Western Conference of Teamsters
raise the funds that were available to the western conference?
Mr. Beck. I am not certain but what they were raised through the
medium, in some instances, of dues, and in some instances contribu-
tions, and I think generally it was a per capita paid proposition to
sustain the conference.
Senator Kennedy. In other words, you do not know, when you
wei-e head of the Western Conference of Teamsters, how much the
members paid per capita to the Western Conference of Teamsters?
Mr. Beck. During the entire time I was president? No, I don't
know that.
Senator Kennedy. Or during any year that you were president?
Mr. Beck. No, I really don't laiow that. Several years have elapsed
and I do not remember that.
Senator Kennedy. You do not know what it is today?
Mr. Beck. No. It is a matter of record. I could check it easily, of
course, or you could.
Senator Kennedy. As the liead of the Western Conference of Team-
sters, as I understand it, the Western Conference of Teamsters made
no reports under the reporting procedure set up under tlie Taft-Hart-
ley Act where those locals which were using the services of the Na-
tional Labor Relations Board were compelled to make a report to the
Labor Department. It is my understanding that tlie Western Confer-
ence of Teamsters did not make such a report. Is that correct?
Mr. Beck. I can't answer that. I am not sure. In my opinion, that
is pui'ely a matter that the attorneys would advise on. I understand
very definitely, of course, they should. If tlie}^ didn't, that is in error.
But to here under oath say I know or I do not know, I do not know.
Senator Kennedy. In other words, the statement has been made
tliat nearly a million dollars has been taken out of the Westeni Con-
ference of Teamsters funds eithei' by you or by Mr. Brewster. The
point that I am concerned about is whether the procedures of the
Taft-Hartley Act pi'oviding for reporting are sufficient to protect the
members of the locals against such action, and wliether, under the
oi'ganization of the Western Conference of Teamsters, and under the
Taft-Hartley Act, the average member had an accounting and auditing
made to him.
Now, we know that the Westeri\ Conference of Teamsters did not
make such a report to the Lal)or Department. There seems to be every
indication that the average member of a local wlio was subject to this
per capita tax did not receive an audit.
We have had indications before this conniiittee that nearly a million
dollars was taken out from the Western Conference of Teamsters by
you or Mr. Brewster. It seems to me tliat there is a great gap in the
reporting procedures of the National Labor Relations Act of 1947 in
not providing for better procedures in this regard, and this situation
might have been avoided.
Mr. Beck. Of course you are making a statement, you are making a
speech. There is no question ?
Senator Kennedy. I will ask you, then : Do you think the Western
Conference of Teamsters should make an auditing report both to the
1560 IIVIPROPER ACTIVITIES IN THE LABOR FIELD
Labor Department and to their members every year of what tliey do
with the funds ?
Mr. Beck. I personally favor legislation, if not now enacted to be
enacted that gives the most comprehensive and definite accounting of
funds of all local unions and their disposition thereof. I certainly
would favor it as compulsory, and I would favor such legislation
not only in Congress, but I would favor it in the several States of the
Union, very definitely so.
Senator Kennedy. Did you make such a report to the members of
your locals, the locals that contributed a per capita tax to the Western
Conference of Teamsters when you were the head of the Western
Conference of Teamsters ?
Mr. Beck. It is my personal opinion that we did not, but that
does not change in any sense my statement. I don't think because
in the past something has been in error, that is wrong, that that does
not justify the correction of it. It is my personal opinion in all sin-
cerity and honesty — I think it is in the best interests of everyone,
labor, its membership, its officers, the public, and everyone else — that
there be the most rigid system of accounting, and that every avenue
be possibly developed to ^ive the information to the membership, and
I would support such legislation.
Senator Kennedy. I am glad to hear that. Would you give the
members of the Western Conference of Teamsters an auditing for
1950, 1051, and 1952, and would you give the committee a copy of
that auditing ?
Mr. Beck. I would be glad to do it if the aavilable records are
there so that it can be done. I certainly would.
Senator Kennedy. You vrill give an accounting to the committee
of the expenditure of all funds under the control of the Western Con-
ference of Teamsters for 1950, 1951, and 1952; is that correct?
(The witness conferred with his counsel. )
Mr. Beck. Well, now, wait a minute. I don't want to be teclmical
in the question. My legal counsel here is, of course, technical. He
is legal. I am not. I want to answer your question honestly and
sincerely. I have expressed my position, that I favor legislation such
as I can see you favor. I am 100 percent for it.
I am, of course, at the present time, not an officer of the western
conference. Whether or not in a factual manner I can do the things
you ask, I do not know. But I say to you if I can do them, I would
so favor doing them ; yes.
Senator Kennedy. In other words, you will make all the records
available that you have to the membership of the Western Conference
of Teamsters for 1950, 1951, and 1952 ; is that correct ?
(The witness conferred with his counsel.)
Mr. Beck. Let me put it this way, I want to be as honest and
factual and truthful as it is humanly possible for me to be. I want
to carry out advice of my legal counsel. That is what I employ him
for. I have said to you that I am 100 percent in accord, I make it
as a public statement for television or anywhere else, that I favor
all of the things you just outlined relative to accountancy. I have
said to you that 1 am not now a member of the official staff of the
Western Conference of Teamsters. I have said to you that I do not
know whether or not those records are available for me to do it. If
IMPROPER ACTIVITIES IN THE LABOR FIELD 1561
they are, I will gladly do it. But in order to protect myself as to
legal and constitutional rig-hts, if the question has any implications,
such as counsel apparently thinks, I must decline to answer the ques-
tion because this committee lacks jurisdiction or authority under
articles I, II, and III of the Constitution; and further I decline to
answer because I refuse to give testimony against myself ; and invoke
the fourth and fifth amendments; and further because the question
is not relevant or pertinent to the investigation.
The Chairman. The Cliair overrules the objections and orders the
witness to answer the question.
(No response.)
Senator Kennedy. I would say only this, that the allegation has
been made that between you and Mr. Brewster nearly a million
dollars was taken out of the Western Conference of Teamsters. You
are not able to tell us how much was the per capita tax. You have in-
dicated no report was made to your members or to the Federal Govern-
ment under any auditing procedure. It seems to me you should
consider seriously taking the action which the executive committee
of the AFL-CIO in January recommended, that any labor union
official who takes the fifth amendment in order to protect himself
against legal action should resign from his union.
I think that that action should be taken by you in view of the
answers you have given to these questions.
(The witness conferred with his counsel.)
Mr. Beck. Let me answer you this way. Senator Kennedy : I have
no objection in the world to you reaching any conclusion in your own
mind that is dictated by your conscience, and I give you every right in
the world to reach your conclusions, and I certainly feel that you
wouldn't do it — I know something of you and your record and your
sincerity, and I believe you fundamentally believe as you express.
Personally, I opposed that adoption within the executive council.
I opposed it because, in my opinion, it is a dangerous precedent to
evStablish. My colleagues on the board, the majoritj^ of them, disagreed
with me on that. I think that the Constitution is a document that must
not be disturbed in affording all citizens its full right and protection
imder all of its amendments and the Bill of Rights.
I feel that it is absolutely necessary, going into the future, not know-
ing where it may lead. And because I feel that way about it ; I took the
position I did in the executive council, and I take the position here of
exercising the avenues of the fifth amendment because I don't know
where these questions or questions leading from them may lead to.
It is because of that reason that I decline to answer on the grounds
stated in my last answer.
Senator Kennedy. I do not object to your taking the fifth amend-
ment to protect yourself legally. You have every right to do it. The
question is whether properly you should remain at the head of your
union during this ]ieriod when you are availing yourself of the amend-
ment, in view of the position of the AFI.r-CIO, which represents the
united labor position.
Mr. Beck. Let me answer your question this way. Senator: I was
elected president of the International Brotherhood of Teamsters by a
convention of the brotherhood of teamsters, and that term of office
does not expire until next December. In the interval of that time, in
1562 IMPROPER ACTIVITIES IX THE LABOR FIELD
September, there Avill be another convention held of the International
Brotherhood of Teamsters.
In my person:il opinion, the membership of this international nnion
"vvill have every opportmiity to approve or disapprove of any of the
actions of its g'eneral president. I do not think it is g-ood business
from the standpoint of the welfare of the country as a whole, or labor,
or anyone else, to, upon alleo;ations, deprive individuals of office
in the interval of a tiial on its merits throuii'h the judicial procedures
of our constitutional o-overnment. It is on that basis that I took my
position in the executive cou.ncil.
I do not under any conditions intend to resign. I intend to be a
candidate in September in order that the membership itself may have
an opportunity to pass upon my qualifications, my fitness, and my
honesty in a convention of this international union. I will rise or fall
on the decision of my own associates in the Teamsters International
Brotherhood of not on the basis of allegations but with time having
elapsed to prove, through judiciary, courts of law, and et cetera, with
the constitutional rights of facing my accusers, the rights of evidence
being maintained, and the right of cross-examination, so my story in
its entirety can be weighed on its merits and then a decision rendered
by my associates in the International Brotherhood of Teamsters.
Senator Ives. Mr, Chairman ?
The Chairman. Senator Ives.
Senator Ives. I want to carry the question to one point further.
Aside from being president of the International Brotherhood of
Teamsters, Chauffeurs, Warehousemen and Helpers of America, you
are also a vice president of the AFI^CIO Executive Council, are you
not. and sit on it in that capacity?
Mr. Beck. That is correct.
Senator Ives. You are ex officio vice president of that organiza-
tion, because of your presidency of the international ? Are you also
vice president of the other organization, the AFI^CIO? Are you
elected ?
Mr. Beck. Elected; yes, sir.
Senator Ives. You are elected by the executive council, are you not ?
Mr. Beck. No, sir. I was originally elected to serve out a term
by the executive council, and then at the following convention I was
elected by the convention for a term of office that has not yet expired.
The Chairman. Senator Ives will preside for a few moments.
Senator Ives. I will go ahead, but I want to ask another question
before I recognize Senator Ervin. In that connection, as a vice presi-
dent of the executive council, the parent organization, do you not feel
bound to comply with the policies of that organization, including the
newly adopted ethical code?
You, as I recall, ]\Ir. Beck, were defeated in your effort and opposi-
tion to that code. You were the one vote against it : were you not ?
You had no company there at all.
(At this point, the chairman withdrew from the hearing room.)
]Mr. Beck. Let's correct that record right now. I was the one that
stood up and voted against it and argued against it, but three other
members of the council refused to vote. Personally, I never refused
to vote on any question. I will be counted one way or the other.
Senator Ives. Do you not feel obligated, therefore, to carry it out,
in view of the fact that it was adopted?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1563
Mr. Beck. No; I do not feel obligated to carry it out because, in my
personal judgment, a greater issue is involved. I do not feel that I
should be bound by the majority decision in any instance, where it,
in my opinion, transcends my rights as a citizen or any other indi-
vidual's rights as a citizen, 1 think we are going too far. 1 am as
sincere in that as you may be in opposition to my opinion.
I think that the most dangerous thing in the country today or any
othei- time is to stej) in and, upon the basis of allegation, compel men
to resign. You haven't even done it in the United States Congress
when men have been under charges. You have given them the i;ight
to go into the courts, and they have had the right of a judicial proce-
dure. I contend tliat the executive council is overstepping all of its
bounds when it attempts to compel an individual to resigii from an
office u})on an allegation, Avliere he is in conformity with his constitu-
tional rights, and where they are attempting to discipline in violation
of them.
Senator Ives. You had every right to oppose it. But after all, the
ethical code was adopted. After all, you are a vice president of the
AFL-CIO, the parent organization. You sit on the executive council,
T want to get this established.
Mr. Beck. I want to get it established, too.
Senator Ives, the trust test of a democracy is its rights to protect the
minority. I say that the executive council — T can't control the execu-
tive council or do I desire to do so. I say that the executive council
is far overreaching its authorities in itself when it attempts to disci-
pline upon allegation, when the membership making it up or any of
its officers are only alleged to commit overt acts, and they are in con-
formity with their constitutional rights.
I think the executive council is far overstepping its authority, and
1 personally, under no condition, will resign.
Senator Ives. I have read that code of ethical conduct, whatever it
is called, and I could not see where they were overste])piug any author-
ity at all. They were setting up a group of principles by which to
guide themselves. I thought they were very high principles and vei-y
fine principles. I am sure that the public generally approved of them
wholeheartedly. Do you disapprove of theni'^
Mr. Beck. Senator Ives, let us narrow it down to what we are
• discussing.
Senator Im3s. I know, but you ave — wait a minute, before you start
on that. We are talking about the code of ethics.
Mr. Beck. That is right.
Senator Ives. That is what we are discussing.
Mr. Beck. AVait a minute. You asked me a specific question.
Senator I\t:s. I did?
Mr. Beck. Did I intend to resign.
Senator Ives. I had not gotten around to tliat question, but I in-
tended to.
Mr. Beck. It is in the record.
Senator Ives. I did not raise it.
Mr. Beck. You asked me if I was going to resign. If we go back
and check the record, one of the two of us are in error.
Senatoi- Ives. You misunderstood me. I had not gotten to that
question yet.
Go ahead ; you anticipated it.
1564 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I am not smart enough to be ahead of you, surely. Sen-
ator, I say this: I don't care whether it is the bar association, or
whether it is the medical profession or whether it is the executive
council, or whether it is any other part of our economic or social life.
I say that they have no right to act in a manner that contradicts the
rights of the citizenry as outlined in the Constitution and the Bill
of Eights. I think we are stepping too far. I say again that you
have not done it right here in this United States Congress, when you
had Congressmen who were accused of the commission of overt acts.
You didn't call an investigation and put them out of Congress.
Senator Ives. Oh, yes ; we did.
Mr. Beck. They stayed in Congress until they were heard in the
courts.
Senator Ives. I am not trying to get you kicked out. I am just
asking you if you are going to resign.
Mr. Beck. They didn't resign.
Senator Ives. 1 am not talking about anybody else. I am talking
about you, Mr. Dave Beck.
Mr. Beck. And I have answered you definitely. I do not intend to
resign, because I think the executive council is far overreaching itself.
(At this point, the cliairman entered the hearing room.)
Senator Ives. JSfay I get this straight where j^ou are concerned, Mr.
Beck, because it intrigues me no end.
Mr. Beck. Yes, sir.
Senator Ives. Apparently the welfare of one Mr. Dave Beck, re-
gardless of any rules of ethics or conduct or the welfare of anybody
else, is paramount. Is that the position you take in all of this ?
Mr. Beck. Positively not.
Senator I\tss. That is what you are talking about all the time.
Mr. Beck. Positively no. I do not take any such a position.
Senator I^^:s. That is the position you are actually taking, whether
you are realizing it or not.
Mr. Beck. In your judgment. Senator.
Senator I\T5S. No; I am just observing it.
Mr. Beck. In your judgment. That is your observation. That is
the best it can be.
Senator Ives. And a very accurate one.
Mr. Beck. In your opinion, but not in mine.
Senator Ives. Apparently not.
Mr. Beck. Apparently not.
I take the position, and I have outlined it very carefully, that
all in the world I am doing — I have made statements over television,
radio, and so forth, and I have stated to vou if I have made any mis-
statements we have certainly processes of Government to bring Beck
in and find out whether he did or did not, through the judicial proc-
esses, and I say to you all I am asking for is an opportunity to exer-
cise my constitutional rights through the machinery of its judicial
system, with the rights of cross-examination, the rules of evidence,
and the right to meet my accuser in the court.
Senator Ives. In concluding our dissertation on this subject, I dare
say you are going to have the opportunity to exercise those particular
rights.
Mr. Beck. I sure have no objections to that in the slightest degree,*
none.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1565
The Chairmax. Senator Erviii ?
Senator ER\T:]sr. ]Mr. Beck, in your recent answers you have iterated
and reiterated your objection to action being taken on the mere basis
•of allegations. I want to ask you whether or not you mean to imply
by your answers in which you have used that expression, that if you
were to make a full and truthful disclosure of the facts concerning
the allegations against you, such full and truthful disclosure on your
part would show that these charges are mere allegations without fac-
tual foundation.
(The witness conferred with his counsel.)
Mr. Beck. I want to answer your question, Senator. You are a very
able and learned jurist, one of the finest, I think, the country has ever
had. I am a layman. I don't accuse you in the slightest degree of
leading me anywhere, but I am going to be absolutely certain, in har-
mony with what I set out from the start, and I am going to protect
myself and my constitutional and legal rights.
So I am going to answer your question by saying I must decline to
answer the question because this committee lacks jurisdiction or au-
thority under articles I, II, and III of the Constitution; further, I
decline to answer because I refuse to give testimony against myself,
and invoke the fourth and fifth amendments; and further because the
■question is not relevant or pertinent to the investigation.
(At this point Senator McCarthy withdrew from the hearing room.)
The Chairman. The Chair overrules the objection and orders and
•directs the witness to answer the question, unless there is an objection
•on the part of the committee.
(No response.)
Senator ER\T[isr. Mr. Beck, do you not recognize and realize that if
your answers would make it clear that the charges under investigation
•concerning your conduct m respect to the teamsters union were mere
allegations without factual basis, that you would have no right to
invoke the fifth amendment ?
(The witness conferred with his counsel.)
(At this point Senator McNamara withdrew from the hearing
room.)
Mr. Beck. Sometimes I wish I didn't have counsel with me.
AVliat I am trying to do is
Senator Ervix. You might follow the precedent set by an old col-
oi'ed woman down in my country who went to see a lawyer one day
and asked him for advice on a point. He gave it to her. She got up
and started to leave his office. He said, "Wait a minute. Auntie, yon
•owe me $5." She said, ''What for?" He said, "For my advice." She
said. "Well, I aiirt gwine to take it."
So, whether you take the advice of your counsel is something for
30U to decide.
Mr. Beck. Senator, let me say this to you, if I follow out your ad-
A'ice which may be very good, I will use it on the last day, when I won't
have to pay him so much. I do want to follow advice of my counsel.
As I stated many times, that is what I hired him for. I have to answer
your question, as I did before, I decline to answer on the grounds
stated in my last answer.
Senator Ervix. I will make an observation. I never blame a client
for following the advice of his counsel, when I had clients who would
1566 IMPROPER ACTIVITIES IN THE LABOR FIELD
not follow 111}' iulvice, I always suggested they get themselves another
lawyer.
I want to go back just a minute. Senator Kennedy was asking^
3^ou some questions awhile ago. They reminded me of a great judicial
decision w-hich Avas handed down by the supreme judicial court of his
State, the Commonwealth of Massachusetts, the rough one of the great
American judges, Oliver Wendell Holmes. The case involved an
ordinance of the city of Boston, which prohibited a policeman of the-
city from being active in politics. A policeman was active in politics
in violation of tliat ordinance, and he was discharged.
He brought a suit to be restored to his position as policeman of the
city of Boston, in wliich he alleged that he had a constitutional right
as an American citizen to be active in politics.
As I recall it, Justice Holmes wrote an opinion, for the Supreme
Judicial Court of Massachusetts, in which he stated that every Amer-
ican citizen did have a right under the Constitution to be active in
politics, but that every American citizen did not have a constitutional
right to be a policeman of the city of Boston.
As I conclude from the code of ethics established by the AFL-CIO
board at Miami, Fla.. the board said that every officer of a union, every
member of a union, and every American had a right to invoke in his
own defense the fifth amendment, but, it said, somewhat by analogv to
M'hat Justice Holmes said, that no official of any union who invoiced
the fifth amendment, when he Avas queried about his conduct as an
officer of the union, had a right to remain as an officer of the union^
That is their code of ethics as I interpret it.
(At this point, Senator McCarthy entered the hearing room.)
Mr. Beck. You are not asking me a question. That is a statement,
and I respect it in every degree.
Senator Ervix. Isn't that vour interpi'etation of the code of
ethics ?
Mr. Bkck. I don't for one secotid say that the board of the executive
council, and my associates thereon, don't have a right to retich t'imr
own conclusions. I am in disagreement with them. I do not waive
my rights to disagree with them on tliat or any other question at all.
It may be that in the finals it will be judged that they are right and I
am wrong. I d<m't know that, either. But I do say to you that hon-
estly and sincerely, whether you believe it or not, there is nothing
that I am stating that I do not believe in as a fundamental truth,,
and that should be followed, and I honestly and conscientiously be-
lieve that the executive council or any other social or economic organi-
zation oversteps its rights when it attempts to exei-cise directly or
indirectly discipline on the basis of a man exercising his constitutional
rights. That is my opinion.
Mr. Ekvix. Mr. Beck. I am not going to quarrel with you for being
a dissenter, because I have always had a good deal of admiration for
dissenters. Sometimes I have dissented on some things myself. But
what I was asking vou is if I haven't given a correct nutshell interpre-
tation of the code of ethics adopted by the AFL-CIO board at Miami,.
Fla. ? Regardless of whether the fode is right or whether it is wrong,
isn't that a shorthand statement of the code established by the ma-
jority of the board ?
Mr. Beck. I think. Senator, you outlined vei-y well the decision
finally arrived at and approved by the majority. But I do. w^ant to-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1567
emphasize that simply because tliat is the decision of tlie majority
doesn't necessarily mean in time to come it will not prove wron<i\
There have been many thousands of thing's in the conduct of our
Government. I have read eAerythino; on Oliver Wendell Holmes, I
think, that I could ever iret my hands on that has been printed, and
that doesn't necessarily mean because we are in the minority today
we won't be in the majority tomorrow in anything. I don't know.
But I do say very definitely. Senator, that you have covered in a nut-
shell what I think the action of the executive council was. I empha-
size again I am in disagreement with them.
Senator Ervin. Thank you.
The Chair^ian. Senator Mundt?
Senator Mrxirr. jNIr. Reck, I think you said a little earlier that you
would favor making a full report from the western conference rec-
ords to the dues-j^aying members of the teamsters' union on all of the
financial transactions which occurred at the time you were president
of the western conference, provided those records were available.
Mr. Beck. Yes, sir.
Senator INIuxut. You are aware, are you not, that those records
have been destroyed up until the year 1954?
Mr. Beck. I know. Senator, that some records Avere destroyed, not
only records of our books and so forth, but the back copies of our pub-
lications, which is almost invaluable to us, find all of our hundreds and
hundreds and hundreds of our contracts that were tremendously im-
portant; I know that. But let me emi)hasize to you, Senator, in all
sincerit}^ I am not answering you on the basis of any attempt to in
any way, shape, or manner contravene what I said I would be very
glad to do if it is possible for me to do it, nor do I retract in the
slightest degree my statement, regardless of errors of the past intended
or having happened because of circumstances or conditions. I am
100 percent in favor of the most rigid system of accountancy of the
funds and moneys of unions and welfare and pensions and everything
else. I think it is a distinct step forward in the interest of labor itself*
its officials, and government, and everyone else.
Senator Muxdt. When you made the statement before, it was not
as embracive as when you made it last. I am glad to luive you expand
it. You said at that time you were in favor of a full disclosure and
leport of all of the funds of the locals. I take it from what you have
now said that you would favor and support legislation ])roviding for
the most rigid kind of financial control of all union funds, whether
in the western conference or the infernational or the locals^
Mr. Beck. Positively. I am very happy to put it into the record,
for whatever value it may have in Congress or anywhere else, in my
(official position as the president of this international union, the largest
in the world. I am, myself, personally coufi'onted with a situation
that I am just as certain and positive in my own mind will be disposed
of 100 ])ercent satisfactory to me when the final days of accounting
come into court. But I want to make it very definite and clear that
you will, in this committee and Congress itself, render a distinct serv-
ice to the country as a whole for the long pull and for labor and for
its individual membership, if you write into congressional law abso-
lute compulsion for accounting of funds, if possible, by certified public
accountants. The only exception to that being whether in small or-
ganizations they can raise the necessary finances to do it, but you can-
1568 IMPROPER ACTIVITIES IN THE LABOR FIELD
not, in my opinion, put in too stringent regulations that account for
the funds of the organization and protects the funds of its welfare
and its retirement program.
Senator Mundt. You and I agree 100 percent on that point, Mr.
Beck.
Mr. Beck. Thank you.
Senator Goldwater. Mr. Chairman?
The Chairman. Senator Goldwater.
Senator Goldwater. Mr. Beck, getting back to your constitution,
article 13, 1 believe, section 8, refusal to return books, and I quote :
Any member who (1) wrongfully takes or retains any money, books, papers, or
any other property belonging to the International Brotherhood of Teamsters,
Chanft'eurs, Warehousemen and Helpers, or any joint council, local union, or
other subordinate body, or (2) mutilates, erases, destroys, or in any way injures
any books, bills, receipts, vouchers, or other property of the international, or
any joint council, local union, or any other subordinate body may be tried in the
manner provided for trial of other offenses.
AVliat steps has the president of the international taken against the
chairman of the western conference for allowing his books to be
mutilated and destroyed?
Mr. Beck. Well, let me answer it this way : I think, to the best of
my laiowledge, Mr. Brewster's testimony was concluded here last
Friday. Is that right ?
Senator Goldwater. That is right.
Mr. Beck. Most certainly, up to the present moment, regardless of
any action I might elect to take, I wouldn't take it in that time.
Senator Goldwater. Are you going to take it ?
Mr. Beck. I don't know whether I am going to take it. I can't
answer you that now, because I want to be truthful in all my answers.
I say that the subject matter will undoubtedly be discussed before the
general executive board of this international union at its next session,
and undoubtedly out of that session there will be a determination of
the policy as it pertains to Mr. Brewster, Mr. Beck, or anyone else.
I personally, for my own self, am a himdred percent in favor of that
procedure being followed.
Senator Goldwater. Mr. Beck, just one suggestion: You use the
word "may" be tried. Might a humble Senator suggest that you
change that word to "shall," when you rewrite the constitution as Mr.
Brewster suggested that he will do? It is a pretty loose thing to
allow
Mr. Beck. It is a very loose thing
Senator Goldwater. Pardon me a moment. It is a pretty loose
thing to allow any head of any section of organized labor the right to
destroy these books and then say in the constitution that he may be
(ried. ' I think it should say for the protection of your union members
that he shall be tried.
Mr. Beck. I would favor that 100 percent, definitely so.
The Chairman. Counsel Kennedy, you may proceed.
May the Chair suggest to his colleagues that we give counsel some
time now to cover some of these matters which will be very helpful
to the committee if we can get answers. I may say before we proceed
that I have been certainly convinced that the laws need tightening
up with respect to accounting, not by what this witness has said so
much as by what he has not said, and by other evidence that we have
before us.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1569
(Senator Ervin left the hearing room.)
Mr. Kennedy. Mr. Chairman, I was talking earlier about a figure
of $85,119.92, ^Yhich is funds from the teamster organizations, mostly
in Seattle, that have been used to pay Mr. Beck's personal bills. Mr.
Chairman, that money was paid to a Mr. Nathan Shefferman. Mr.
Nathan Shefferman used that money to pay the bills of Mr. David
Beck.
Could you tell the committee what your relationship has been with
Mr. Nathan Shefferman ?
(The witness conferred with his counsel.)
Mr. Condon. Mr. Kennedy, did you ask him who Mr. Shefferman is?
Mr. Kennedy. I asked him what his relationship has been with Mr.
Sheft'erman.
Mr. Condon. With respect to the transaction described?
Mr. Kennedy. No; just generally.
(The witness conferred with his counsel.)
]\Ir. Beck. The answer to the specific question : Mr. Nathan Sheffer-
man is the head of the Industrial Relations Associates office in
Chicago, and I think he has an office in New York, in fact I know he
has, and a friend of mine for many years.
Mr. Kennedy. How many years, approximately, has he been a
friend of yours ?
Mr. Beck. I want to be very careful ; I give you as close as I can the
actual number of years. I would say at least 20 years.
Mr. Kennedy. At least 20 years ?
Mr. Beck. I would say so.
Mr. Kennedy. "VVliat was his position at the time he first became a
friend of yours ?
Mr. Beck. If I recall — I don't know but what he was working for
the Federal Government under some phase of the National Labor
Relations Board, or during the days of NRA. I can't answer that ; I
really can't.
j\Ir. Kennedy. Then did he go to work for any companies or
corporations ?
Mr. Beck. I think for a number of years that Shefferman — of
course, you can get this better from him than you can from me — I
think for a number of years he was in the employ of Sears, Roebuck &
Co. I know I met General Wood several times when Shefferman was
there with him.
;Mr. Kennedy. What was his position with Sears, Roebuck ?
Mr. Beck. I can't answer that.
Mr. Kennedy. You do not know what Mr. Shefferman's position
was with Sears, Roebuck ?
Mr. Beck. No ; I cannot.
Mr. Kennedy. You have no idea ?
Mr. Beck. No ; I do not.
Mr. Kennedy. You have no idea ?
Mr. Beck. I do not have any idea of his official position ; no.
Mr. Kennedy. Do you know what services he performed for Sears,
Roebuck ?
(The witness conferred with his counsel.)
Mr. Beck. Well, let me answer it this way. I don't know where
you are going or where you intend to go
89330— 57— pt. 5 5
1570 IMPROPER ACTIVITIES IX THE LABOR FIELD
Mr. Kennedy. Yes, you do, Mr. Beck.
Mr. Beck. And I say I don't. I am not contradicting you. Don't
say that I know when I do not know.
Mr. Kennedy. Then answer the question.
Mr. Beck. All right. I tell you I do not know.
Mr. Kennedy. Answer the question.
Mr. Beck. All right, I am not going to answer the question because
I do not know. I am going to answer the question in this manner :
I must decline to answer the question because this committee lacks
jurisdiction or authority under articles I, II, and III of the Constitu-
tion; further, I decline to answer because I refuse to give testunony
against myself, and invoke the fourth and fifth amendments; and
further because the question is not relevant or pertinent to the
investigation.
The Chairman. Let's have order. The Chair overrules the objec-
tion and orders and directs the witness to ansAver the question.
Mr. Kennedy. Answer the question.
Mr. Beck. I answered the question. Do you want me to read it
jain? I will. I must dec
committee lacks jurisdiction-
The (^HAiRMAN. Wait a minute. You have already answered that.
Mr. Beck. All right.
The Chairman. Proceed, Mr. Counsel.
Mr, Kennedy. What has been your relationship with Mr. Nathan
Shefferman, Mr. Beck? That is not a difficult question to answer.
(The witness conferred with his counsel.)
Mr. Beck. I prefer that I stay right on Xo. 1 answering your ques-
tions, sir. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution; further, I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments; and further because the question is not relevant or pertinent to
the investigation.
The Chairman. The Chair orders and directs you to answer the
question and overrules the objections that you have interposed.
Mr. Kennedy. Has the teamsters organization, or any unit thereof,
had any contacts with Sears, Roebuck or any of Mr. Nathan Sheifer-
man's clients ?
Mr. Beck. I nnist decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution: further, I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth ainend-
ments; and further because the question is not relevant or pertinent to
the investigation.
The Chairman. Mr. Counsel, I suggest you make a statement as
to the records we have here before us, as to what they show with
respect to the transactions, and Mr. Beck's relationship, and tlien
ask Mr. Beck if he wishes to comment on it.
Mr. Kennedy. Mr. Chairman, we know of a number of different
financial transactions that Mr. Dave Beck has had with Mr. Nathan
Shefferman. We know of financial transactions that Mr. David Beck,
Jr., has had with Mr. Nathan Shefferman, and we know of financial
transactions that Mr. Dave Beck, Jr., has had witli Mr. Shelton
fihefferman, ]\Ir. Nathan Shefferman's son.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1571
"VVe know that a number of these businesses from which Mr. Dave
Beck received prohts were businesses that had contracts or financial
dealings with the teamsters union. We further know that during
the years 1919, 1950, 1951, 1952, and 1953, some $85,119.92 of union
funds were used by Mr. Nathan Sheti'erman to pay the personal bills
of Mr. Dave Beck and Mr. Dave Beck, Jr., and Mr. Norman Gessert
and associates of Mr. Dave Beck.
We know that $10,000 of this $85,000, $40,163.10 came directly
from the Western Conference of Teamsters; that $29,916.98 came
out of the Western Conference of Teamsters, was sent to a public
relations special account in Los Angeles, Calif., stayed there for 2 or
3 days, was withdrawn from that special account, and deposited in
the bank account of Mr. Nathan ISiieli'erman. We know that $2,-
901.29 was used in cashiers checks and turned over to Mr. Nathan
Shefl'erman. This is from the Western Conference of Teamsters.
This goes to make up the $85,000, Mr. Chairman. $5,000 of the
$85,000 came via the Joint Council 28 Promotional League. That
means that the Western Conference of Teamsters, on a check signed
by Mr. Dave Beck and Mr. Frank Brewster, made a check out to the
Joint Council 28 Promotional League for $5,000 and 2 or 3 days
later that money was withdrawn from the Joint Council 28 Promo-
tional League and given to Mr. Nathan Shelferman to pay Mr- Dave
Beck's personal bills, such as guarclening, his shirts, his ties, his
shoes. That there was a withdrawal of $1,509.55 directly from the
joint council 28 legislative fund; that the International Brotherhood
of Teamsters contributed $5,629 directly to the $85,119.92.
We have a list of some of the items that were purchased, and we also
have a witness, Mr. Chairman, that can testify in more detail on
these transactions.
The Chairman. Let's see if Mr. Beck will testify on them first.
Do you have any comment to make? Do you want to deny or re-
fute this statement ?
]Mr. Beck. Is it a statement or a question ?
Tlie Chairman. It is a question. Do you want to deny, refute,
admit, or make any comment 'i
Mr. Beck. I desire to answer the question by stating I nmst decline
to answer the question because this committee lacks jurisdiction or
authority under articles I, II, and III of the Constitution; further,
I decline to answer because I refuse to give testimony against myself,
and invoke tlie fourth and fifth aniendments; and further because
the question is not relevant or pertinent to the investigation.
The Chairman. The Chair overrules the objections.
I'nless there is objection from the committee, the Chair directs and
orders the witness to answer.
( No response. )
INIay I ask, Mr. (Counsel, do you have some canceled checks here.
])lH)tostatic copies of checks to substantiate what you have just stated ^
Mr. Kennedy. Tliat we were able to get from the bank. As you
know, the records of tlie Western Conference of Teamsters have been
destroyed. But, jVlr. Chairman, Mr. Beck lias stated that he would
like to give a financial accountijig of the Western Conference of Team-
sters, and these are for the years 1950, 1951, and 1952, and these are
some checks which, if he can give us an explanation, would greatly
expedite our understanding as to how the funds were used.
1572 IMPROPER ACTIVITIES IN THE LABOR FIELD
These, Mr. Chairman, are checks of the joint council to the Los
Angeles public relations special account, which we talked about in an
earlier session.
The Chairman. Mr. Beck, if you are sincere in wanting to give
an accounting, we will help you get a start. I would like to show you
now exhibit No. 61 to the testimony that has been adduced at this
hearing, which purports to be a photostatic copy of a check bearing
your name, your signature, Dave Beck, as president, and W. F. Brew-
ster's name, with the signature, as secretary-treasurer of the Western
Conference of Teamsters. I ask you to examine that exhibit and
state whether or not you identify it as a photostatic copy of the check
to wliich I have referred.
(Documents handed to witness. Witness conferred with his coun-
sel.)
(Document referred to appears in the appendix of pt. 3, p. 1105.)
Mr. Beck. I return the check by declining to answer the question
because this committee lacks jurisdiction or authority under articles I,
II, and III of the Constitution ; further, I decline to answer because
I refuse to give testimony against myself and invoke the fourth and
fifth Amendments ; and further because the question is not relevant or
pertinent to the investigation.
The Chairman. The Chair overrules the objections of the witness.
Without objection from the members of the committee, the Chair
orders and directs you to answer the question.
(No response.)
The Chairman. Mr. Reporter, where the order is given to the wit-
ness to answer the question and he remains silent, let the record show
that he remains mute and refuses to answer.
Mr. Beck. I have stated repeatedly that I exercise the fifth amend-
ment in all those answers.
The Chairman. Yes, sir. We understand, but I want the record to
show when he is ordered to answer he remains mute and does not
answer.
Mr. Beck. I have answered repeatedly on all questions.
The Chairman. You invoke the fifth amendment. You don't
answer the question.
Mr. Beck. My answer to the question is exercising the fifth amend-
ment.
The Chairman. I understand. But when the Chair overrules the
objection and orders you to answer the original question, then you re-
main mute and do not answer the question.
Mr. Beck. In my original answer the fifth amendment applies.
The Chairman. I understand. The record will show that.
Mr. Beck. So long as it shows that I exercise the fifth amendment.
The Chairman. Now will you look at the check?
Mr. Condon. Mr. Chairman, on the same points that you spoke of,
I am certain when Mr. Beck remained mute whenever you asked the
question, he didn't intend to, and it must be that he didn't realize you
were asking him a question.
The Chairman. When I overrule his objections to the question and
order him to answer it, he has remained mute and has not answered
the question. It is not necessary for him to again invoke the fifth
amendment. He is ordered to do something. He either carries it out
or he doesn't. He already stated the reason why he didn't answer the
^IMPROPER ACTIVITIES IN THE LABOR FIELD 1573
question. There is no need to repeat that a thousand times. He
stated the reason. But notwithstanding his objection, the Chair or-
ders him to do it, and the only way that he could comply with the order
of the Chair would be to answer the original question and not again
invoke the fifth amendment. One is an order, one is a question. He
refuses to answer the question and states his ground. The order he
does not comply with.
Mr. Condon. As I understand what you are saying, when Mr. Beck
has remained mute at each respective instance, in your judgment he
again refuses to answer
The Chairman. He refuses to carry out the order of the Chair to
answer the question.
Mr. Condon. On the same grounds that he stated ?
The Chairman, He can have any grounds he wants. It is not nec-
essary to repeat the grounds. He does not answer the question. That
violates the order of the Chair, His invoking the fifth amendment
takes care of his constitutional rights if he has a constitutional right
in that respect. He has alread}^ clone that by stating that.
The Chair overrules that and orders him to answer the question.
■\\lien he fails to carry out that order then the question is whether
the Chair was right in overruling the objections to it.
It is not necessary for him to state it again and again in response to
an order to answer the question,
Mr. Condon. Senator, thank you. I don't want to labor the point,
but I do want the record to show at this point that I am certain that
Mr, Beck did not deliberately remain mute at any time during this
hearing.
The Chairman, He has remained mute insofar as answering the
questions. He hasn't remained mute in invoking the fifth amend-
ment but in carrying out the order to answer the question he has
remained mute.
Look at the check, Mr. Beck, again.
Mr, Beck, This is the same check I looked at a minute ago, and
the answer I just gave you.
The Chairman. Just a moment. While you are looking at that
check, state whether or not you identify your signature as one of the
drawers of that check on the funds of the Western Conference of
Teamsters. Is that your signature ?
(The witness conferred with his counsel.)
The Chairman. You photographers will have to be a little more
discreet.
(The witness conferred w^ith his counsel.)
Mr. Beck, I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against mj^self, and invoke the fourth and fifth amend-
ments; and further because the question is not relevant or pertinent
to the investigation.
The Chairman, Do you identify this check?
Mr, Beck. I decline to answer on the ground stated in my last
answer.
The Chairman. All right, sir.
Mr. Beck. That is true of all of them.
The Chairman. The Chair orders you to answer the question.
*1574 mPROPER ACTrVITIES IN THE LABOR FIELD
Mr. Beck. I decline to ansM-er on the grounds stated in my last
answer.
The Chairman. The Chair presents to yon exhibit No. (53 to the
testimony at these hearings, whicli also pnrports to be a photostatic
copy of a check made payable to, "Special Acconnt, Public Relations
Division. $5,000," drawn by yon and Frank Brewster on the account
of the Western Conference of Teamsters.
Will you please examine that check and state whether or not you
identify it?
(Document referred to appears in the appendix of pt. 3, p. 1107.)
Mr. Beck. I decline to answer the question because this committee
lacks jurisdiction or authority under articles I, II, and III of the Con-
stitution and further I decline to answer because I refuse to give testi-
mony against myself and invoke the fourth and fifth amendments,
and furtlier because the question is not relevant or pertinent to the
investigation.
The Chairman. You are ordered to answer the question.
Mr. Beck. I decline to answer on the ground stated in my last
answer.
The Chairmax. Do you recognize that as your signature on that
check?
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. Will you compare it with the letter that you sub-
mitted to the Chair here this morning and that you read, with your
signature to that letter and let us have it, please, and file that ?
Mr. Beck. I decline to answer on the ground stated in my last an-
swer.
The Chairman. Get me that letter he filed here this morning. The
Chair presents to you a third check in the amount of $7,000 sioned by
Dave Beck and Frank W. Brewster on the same account. Will you
examine this check and advise whether you identify it?
Senator Mundt. Perhaps, Mr. Chairman, we should advise Mr.
Beck that those are the same checks on which INIr. Brewster has al-
ready acknowledged his signature, Mr. Brewster's signature.
The Chairman. Yes, sir ; they have been identified by Mr. Brewster
under oath and placed in the record accordingly. They are already
exhibits in these hearings.
Mr. Beck. I decline to answer the question because this committee
lacks jurisdiction or authority under articles I, II, and III of the Con-
stitution and further decline to answer, to give testimony against my-
self and invoke the fourth and fifth amendments and further because
the question is not relevant or pertinent to the investigation.
The Chairman. The Chair orders and directs you to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. I am sure this would not incriminate you. Would
you tell us why the Los Angeles public relations special account was
set up ?
(The witness consulted with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
IMPROPER ACTIVITIES IN THE LABOR FIELD 1575
the Constitution and further, I decline to answer because, I refuse to
give testimony- against myself and invoke the fifth amendment and
fourth amendment and, further because the question is not relevant or
pertinent to the investigation.
Senator McCarthy. Could I interruj)t there, Mr. Counsel?
I notice in your objection, you always use the phrase that the ques-
tion is not pertinent to the investigation. I am sure you know the
purpose of the investigation, but just in case this question arises in a
future court action, I think we should ask you if you know the pur-
pose of this investigation.
You say the question is not pertinent to the investigation. Do you
know the purpose of the investigation?
Mr. Beck. I prefer to answer your question, and decline to answer it
on the grounds stated in my last answer.
The CHAiinrAN. The Chair may state for the record that he ob-
viously does because he read from his letter to the committee this
morning the purpose of the investigation and the Chair also em-
phasized the purpose of it in his opening statement in his presence.
Senator McCarthy. I thank the Chair. I just wantect that made
a i)art of tlie I'ecord in case of any future legal action.
Tlie Chairman. All right, Mr. Counsel.
Mr. Kennedy. Mr. Brewster has testified that the Los Angeles
special account, public relations special account, was set up at your
suggestion. Is that true?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution, and, further, I decline to answer because I refuse to
give testimony against myself and invoke the fourth and fifth amend-
ments; and, further, because the question is not relevant or pertinent
to the investigation.
The Chairman. You are ordered and directed to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Did the Los Angeles public relations special account
ever serve any union function ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution, and, further, I decline to answer because I refuse to
give testimony against myself and invoke the fourth and fifth amend-
ments; and, further, because the question is not relevant or pei'tinent
to the investigation.
The Cxiairman. You are ordered and directed to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Was the Los Angeles public relations special ac-
count set up by you in order to siphon funds from the Western Con-
ference of Teamsters?
Mr. Beck. I must decline to answer the question because the com-
mittee lacks jurisdiction or authoi"ity under articles I, II, and III of
the Constitution, and, further, I decline to answer because I refuse to
give testimony against myself and invoke the fourth and fifth amend-
1576 IMPROPER ACTIVITIES IN THE LABOR FIELD
ments ; and, f urtlier, because the question is not relevant or pertinent
to the investigation.
The Chairman. You are ordered and directed to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Mr. Chairman, some $29,916.98 went to the Los
Angeles public relations special account on checks that were signed
by Mr. Dave Beck. Can you give us any explanation for those
moneys ?
Mr. Beck. Is that a question ?
Mr. Kennedy. Yes.
Mr. Beck. I must decline to ansvrer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution, and, further, I decline to answer because I refuse to
give testimony against myself and invoke the fourth and fifth amend-
ments; and, further, because the question is not relevant or pertinent
to the investigation.
The Chairman. You are ordered and directed to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Now. Mr. Chairman, some 2 or 3 days after these
moneys were deposited in the Los Angeles public relations special
account, and they were deposited at various times, but some 2 or 3
days after each of the deposits were made, these moneys were with-
drawn and deposited in the bank account of Mr. Nathan Shefferman,
Can you give us any explanation of that Mr. Beck ?
Mr. IBeck. Is that a question?
Mr. Kennedy. Yes.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III
of the Constitution and further, I decline to answer because I refuse
to give testimony against myself and invoke the fourth and fifth
amendments, and further because the question is not relevant or perti-
nent to the investigation.
Senator McCarthy. Could I ask a question, there, Mr. Chairman?
The Chairman. Senator McCarthy.
Senator McCarthy. You have been citing sections I, II, and III
of the Constitution as grounds for not answering. Will you just
briefly tell us what parts of sections I, II, and III of the Constitution
you have in mind?
Mr. Beck. I prefer for the record to show that I stand on the exact
language that I am writing into the record.
Senator McCarthy. I would like to know what you have in mind
when you say, "I rely upon sections I, II, and III."'^ I tliink the com-
mittee is entitled to know what you have in mind.
Mr. Beck. My answer is to decline to answer on the ground stated
in my last answer.
Senator McCarthy. You will not tell us what sections of the Con-
stitution or the content of the sections upon which you rely ?
Mr. Beck. My answer is, I decline to answer on the grounds stated
in mv last answer.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1577
Senator McCarthy. Do you know what sections I, II, and III
contain ?
Mr. Beck. I decline to answer on the ground stated in my last
answer.
Mr. Kennedy. Mr. Chairman, there are some more questions on
this matter, on the $85,119.92 that I think should be asked of Mr. Beck,
but I think it would be helpful to the committee if we put another
witness on first, to sort of give an explanatory statement.
The Chairman. I think it would be very well to call the other wit-
ness for the present and let Mr. Beck step aside for a little while.
You will remain available, Mr. Beck, subject to being recalled.
But just before you do, the Chair asks you again to take the three
checks that have been exhibited to you, exhibits 61, 63, and 64, that
have already been exhibited to you and then compare them with the
letter that you submitted to the chairman on yesterday, and state
whether those signatures are the same.
(The documents were handed to the witness.)
(The documents referred to appear in the appendix of pt. 3 as
follows : Exhibit 61, on p. 1105 ; exhibit 63, on p. 1107, and exhibit 64,
on p. 1108.)
Senator McCarthy. In fairness to counsel he should know that
he is on the air when he is having those private conferences.
Mr. Beck. There is nothing in the private conference so far as I am
concerned that the air can't listen to.
I identify my signature on the letter that I sent to you yesterday.
As it pertains to the others, I desire to exercise the same position that
I have been taking. I must decline to answer.
The Chairman. Would you not strain a little point now and idetify
your other signatures ?
Mr. Beck. The only signature I will identify is the one here that I
signed yesterday. On the others I decline to answer the question be-
cause the committee lacks jurisdiction and authority under articles I,
II, and III of the Constitution and further, I decline to answer because
I refuse to give testimony against myself and invoke the fourth and
fifth amendments, and further, because the question is not relevant or
pertinent to the investigation.
The Chairman. The Chair orders and directs you to answer as to
the signatures on the checks.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. Mr. Beck, you may step aside for the moment.
Chairs will be provided for you there.
Call the next witness.
Mr. Kennedy. Mr. Nathan Shefferman.
The Chairman. The Chair wants Mr. Beck present while this wit-
ness testifies so he can face one of the witnesses who may testify to
some facts that could refresh his recollection.
Mr. Beck. Do you want me to stay in the room, Mr. Chairman ?
The Chairman. Yes, sir, you are permitted to stay in the room and
the Chair desired your presence.
Mr. Shefferman, will you stand and be sworn, please?
1578 IMPROPER ACTIVITIES IN THE LABOR FIELD
You do solemnly swear that the evidence you sluill give before this
Senate select committee shall be the truth, the whole truth, and
nothing but the truth, so help you God ?
Mr. SHErFERMAN. I do.
TESTIMONY OF NATHAN W. SHEFFERMAN, ACCOMPANIED BY HIS
COUNSEL, HOWARD R. SLATER
The Chairman. State your name, your place of residence and your
business or occupation for the recorcl.
Mr. Shefferman. My name is Nathan W. Shetferman. My place
of business is 75 East Walker Drive, Chicago, 111.
The Chairman. That is your residence 'i
Mr. Shefferman. My residence is 1000 Lake Shore Drive and my
business is employer-employee relations, consultants to employers.
The Chairman. Mr. Shefferman, under the rules of the committee,
any witness appearing has the right to have counsel of his own choice
to be present while he testifies and to advise the witness with respect
to his legal rights.
Have you elected to have counsel present ?
Mr. Shefferman. I have.
The Chairman. Counsel, will you please identify yourself for the
record ?
Mr. Slater. My name is Howard H. Slater and my address is 77
West Washington Street, Chicago, 111.
Mr. Kennedy. Mr. Shefferman, could you tell the committee first,
when and under what circumstances you met ]Mr. Dave Beck^
Mr. Shefferman. I have known Mr. Beck for more than 20 years.
Mr. Beck has been a friend of mine for more than 20 years. I met
him, I think, originally in Seattle.
Mr. Kennedy. What positions have you held, and what businesses
have you been in since you met Mr. David Beck?
Mr. Shefferman. In 1934 or 1935 I was with the Labor Board here.
Mr. Kennedy. In what position, in what capacity ?
Mr. Shefferman. Here I started as a mediator and I wound up as
the regional supervisor, the supeivisor of the Labor Boards.
Mr, Kennedy. For what year was that?
Mr. Sheffep.man. I think it was 1934 and part of 193'5. In 1935 I
went with Sears, Roebuck.
Mr. Kennedy. In what position?
Mr. Sheffp:rman. As a consultant in employer-employee relations
and I remained there for about 13 years.
The Chairman. Did you see Mr. Dave Beck frequently during that
period of time?
Mr. Shefferman. Yes, off and on and I don't know what you mean
by "frequently."
Mr. Ivennedy. Did you tell him or did he know what position you
held at Sears, Eoebuck and what work you were doing?
Mr. Shefferman. He knew in a general way and there was nothing
specific because I was a consultant.
Mr. Kennedy. In employer and employee relations?
Mr. Shefferman. Yes, sir.
Mr. Kennedy. He was aware of the fact that you were employed in
that department, anyway?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1579
Mr. Shefferman. In Sears, Roebuck, yes, sir.
Mr. Kennedy. Were you head of the department?
Mr. Shefferman. Well, Sears doesn't need vevy much employer-
employee relations because they have an excellent personnel setup and
so they have relatively few problems. We merely consulted and
worked with the company through the years and advising the mana-
gers and others around the country.
Mr. Kennedy. You worked with them for how long?
Mr. Shefferman. For 13 years.
Mr. Kennedy. For what years?
Mr. Shefferman. I think it was 1935 until about 1948, but back
in 1939 I set up this labor relations associates and we were serving
other employers in the matter also of supervisory training and moral
attitude surveys, and general educational problems and bringing about
<a more wholesome relationship between the employers and tlie em-
ployees.
Mr. Kennedy. That is the position you presently have?
Mr. Shefferman. I have that position now, yes.
Mr. Kennedy. You have offices in what cities ?
Mr. Shefferman. I have offices in New York, Detroit, and head-
quarters in Chicago.
Mr. Kennedy. How many people do you have working for you ?
Mr. Shefferman. xibout 20 men who travel constantly.
Mr. Kennedy. How many clients do you have?
Mr. Shefferman. I should say, rotating somewhere between 200
and 250 and maybe more. I don't even look at the books and each man
takes care of his own area and I should say we have close to 300 clients.
That would be an estimate.
Mr. Kennedy. Are you chiefly in the department store category?
Mr. Shefferman. Well, a good portion of them are. I should say
about 17 percent of them.
Mr. Kennedy. These clients are all employers ?
Mr. Shefferman. All of them are employers.
Mr. Kennedy. You do not have any labor unions as clients?
Mr. Shefferman. No labor unions.
Mr. Kennedy. You think a fairly substantial portion of them are
department stores ?
Mr. Shefferman. In the department stores, I think, a fairly good
portion of tliem.
Mr. Kennedy. Now, do any of these clients that you had, do any
of them have contracts with the teamsters union ?
Mr. Shefferman. I wouldn't know if they had, because they are
all dealing, or whatever dealings they have with the Teamsters Union
would be dealing through their own lawyers.
Mr. Kennedy. I understand that, but could you answer the ques-
tion ?
Mr. Shefferman. I wouldn't really know because to the best of
my knowledge, Mr. Kennedy
Mr. Kennedy. If you are interested in employer-employee rela-
tions you would know whether your clients had contracts with certain
unions.
Mr. Shefferman. I don't really know. You see we have men who
travel and they know more about them and the men in each territory,
1580 IMPROPER ACTIVITIES IN THE LABOR FIELD
the men who operate the territory know mucli more about it than
Ido.
Mr. Kennedy. I am sure of that.
Mr. SiiEFFERMAN. But as to the number of clients who have deals
with the teamsters, I didn't know.
Mr. Kennedy. I did not ask you the number. I asked you if some
of them did.
Mr. Shefferman. I imagine they have, of course.
Mr. Kennedy. Some of these department stores, of course?
Mr. Shefferman. Some of these department stores must have, but
I wouldn't have anything to do with them.
Mr. Kennedy. I just wanted to find out.
Mr. Shefferman. I beg your pardon, but they deal through their
own lawyers.
Mr. Kennedy. But some of them do have contracts with the team-
sters ?
Mr. Shefferman. Yes, sir, as they do have with other unions.
Mr. Kennedy. What about your financial affairs? Have you had
any financial transactions with Mr. Dave Beck?
Mr. Shefferman. Yes; I have had several.
Mr. Kennedy. Would you outline those for the committee?
(The witness consulted with his counsel.)
Mr. Shefferman. Do you have anything specific ?
Mr. Kennedy. First, tell the committee what businesses you have
both been interested in.
Mr. Shefferman. Well, one of the busineses was we bought a house
together here in Bethesda, Md., and he asked me whether I would be
interested in a half interest. There were 5 people in the automobile
when we were going out and I say, "Sure, I'll buy half," and I sent
him a check for the half of it and I think the check was $14,000 some.
Mr. Kennedy. Why did he happen to want to buy the house?
Mr. Shefferman. I think that he had bought it by the time I got
to the deal.
Mr. Kennedy. He wanted to find out if you wanted to share it?
Mr. Shefferman. There were 5 people in the automobile and it
was said jocularly, and I said, "Sure, I'll take half of it," and I sent
him the check the following day, or a few days later and on the
letter I noted that, "Here is the $14,000 for the half of the house,
$14,500 for the half of the house."
Mr. Kennedy. Why did you want to buy a house in Bethesda,
half?
Mr. Shefferman. Just because Dave Beck asked me whether I was
interested in a half interest and he asked, ""Wliy don't you buy half?"
and I bought it. Then, it was rented for 2 years.
Mr. Kennedy. To whom was the house rented ?
Mr. Shefferman. I wouldn't know to whom it was rented. Mr.
Mullenhaus, I think that you have, Mr. Kennedy, I think that
Mr. Kennedy. You do not mean that you do not know whom it
was rented to.
Mr. Shefferman. I really don't know.
Mr, Kennedy. Why do you bring the name of Mullenhaus?
Mr. Shefferman. Because Mullenhaus was the man who collected
the rent and sort of handled the deal.
Mr. Kennedy. Is he in the real-estate business?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1581
Mr. Shefferman. No ; he is assistant to Mr. Beck and Mr. English
over at the teamsters union,
Mr. IvENNEDY. He was handling the real-estate transactions for
you?
Mr. Shefferman". Yes, sir, for both of us. I paid little attention
to it and we held it for 2 years and sold it and I think we made about
$900 a piece.
Mr. IvENNEDY. He arranged the renting of the house, did he, Mr.
Mullenhaus ?
Mr. Shefferman. I think he did, the renting.
Mr. KJENNEDY. Did he get a percentage of it?
Mr. Shefferman. That I wouldn't know, and I doubt it. Our
records don't show it, he tells me.
Mr. Kennedy. How much money did you make on that deal ?
Mr. Shefferman. $900.
Mr. Kennedy. Each one of you made $900 ?
Mr. Shefferman. That's right; over and above the rentals, and
they weren't much.
Mr. Kennedy. You rented it for a couple of years?
Mr. Shefferman. I think so.
Mr. Kennedy. Is that the only business?
Mr. Shefferman. Oh, no. The only business I ever really had
with him other than purchasing a good many things in the way of
merchandise of one sort or another
Mr. Kennedy. Tell me this first : Have you had any financial deal-
ings with the teamsters' union or any unit thereof?
Mr. Shefferman. With the union?
Mr. Kennedy. With the teamsters union or any unit thereof.
Mr, Shefferman. If you are speaking of the furniture, Mr. Ken-
nedy ?
Mr. Kennedy. I will speak of anything you want to speak of.
You start.
Mr. Shefferman. I wasn't directly involved, was I, if I recall ?
Mr. Kennedy. You tell us. Was your son involved ?
Mr. Shefferman. Both of us ; we profited ; both of us profited from
the deal.
Mr. Kennedy. What did you do?
Mr. Shefferman-. We found the decorators and we found the fur-
niture and we found the manufacturer and we found the color artists,
and all put together
Mr. Kennedy, For what is this that you found ?
Mr. Shefferman. Pardon me?
Mr. Kennedy. Wliat do you mean? You found them for what?
For the furniture?
Mr. Shefferman. For the furniture.
Mr. Kennedy. Where was the furniture to go ?
Mr. Shefferman. For the building.
Mr. Kennedy. The international headquarters of the teamsters?
Mr. Shefferman. Yes, sir.
Mr. Kennedy. You arranged the purchasing of the furniture?
Mr, Shefferman. My son and I arranged for the purchasing of the
furnishing and the hangings and pretty much nearly everything that
went into the building, as I remember, in the way of furnishings.
1582 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. That deal was handled through you ; is that right ?
Mr. SiiEFFERMAN. Mj SOU aiid I .
Mr. Kennedt. How did you and your son come in?
Mr. Shefferman. I think it was handled through the Union Mer-
chandising. Does anybody remember? I think it was handled
through the Union Merchandising.
Mr. Kennedy. That is a company of yours?
Mr. Shefferman. A company that was set up in which I have, I
think, a half interest.
Mr. Kennedy. When you handled this contract, did you put a bid
in, and was it awarded to you for the handling of the furniture?
Mr. Shefferman. I don't think it was a matter of a bid.
Mr. Kennedy. Who decided that you should get that or handle that
contract ?
Mr. Shefferman. Well, the teamsters as such. I think what it
amounted was that the architects first tried to furnish the buildings
but it wasn't satisfactory to Mr. Beck nor some of the other people in
the building.
Mr. Kennedy. So, did Mr. Beck suggest that you handle it ?
Mr. Shefferman. Yes. He suggested that I handle it or Shelton
handle it, my boy handle it, and we handled it together and we found
the factory and we found the makers and the designers and we found
the artists and the decorators. Incidentally, if it may be of any in-
terest, I don't know for whatever this may be worth, I think we prob-
ably saved them a couple of hmidred thousand dollai^s in the process.
If I were going to the retail cost and what the furniture was actually
delivered for, I think they must have saved, I don't know, I don't
know where I got the figure, but it was talked about; I think they
saved about $200,000.
Mr. Kennedy. Did you people do it as a favor to the teamsters?
Mr. Shefferman. No. We got, or the Union Merchandising got,
a 10 percent plus from the manufacturers, or the salespeople, if I
recall, and I don't remember that. I don't remember the details, and
we can get them.
Mr. Kennedy. How much money, approximately, did you make out
of that?
Mr. Shefferman. Did we make on that? The tax returns, Mr.
Kennedy, the tax returns and the books have been made available to
Mr. Parkhurst and your people in Chicago.
I think they can tell you exactly. They have the figures.
Mr. Kennedy. Who else was in this deal besides you — Shelton and
Shefierman ?
Mr. Shefferman. I don't think anybody was. I don't tliink there
was anybody.
Mr. Kennedy. Was there anybody else in the deal ?
Mr. Shefferman. Just the two of us, they tell me, Shelton and I.
Mr. Kennedy. Mr. Gessert was not in that ?
Mr. Shefferman. I don't know. I had very little to do with Ges-
sert and I don't know whether he was in tlie deal or not.
]\f r. Kennedy. You do not know ?
Mr. Shefferman. I don't think that there was anybody else in the
deal.
Mr. Slater. Would the Chair permit us to confer ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1583
Mr. Kexxedy. Was lie not an employee of the T^nion ]Merchan-
disin^^
Mr. Slatiir. Wonld you permit us to confer on that for a moment ?
The Chairman. Just one moment.
Mr. Shefferman, Yes; I think Gessert was an employee of the
Union Merchandising.
Mr. Kennedy. Mr. Noi-man Gessert was ?
^Nlr. Shei^ferman. Yes, sir.
Mr. Kennedy. So he was associated with you ?
Mr. Shefferman. Was he associated in that deal, Mr. Miller, do
you know ? Did he share in it or what ?
He was paid a salary, so to that extent I don't know whether he
shared or not, because I wasn't really close to the financial end of it,
other than proA^ding of the material and the associations of furniture
people and so on.
Mr. Kennedy. Who is Mr. Norman Gessert ?
]Mr. Shefferman. Mr. Norman Gessert is, I think, related to Mrs.
Beck.
Mr. Kennedy. To Mrs. Beck ?
Mr. Shefferaian. To Mrs. Beck. I think he is related, a cousin of
:Mi-s. Beck.
Mr. Kennedy. Did he receive approximately $38,000 or $89,000 in
salaries from the Union Merchandising?
Mr. Shefferman. Over what period ?
Ml-. Kennedy. Over a period ?
Mr. Shefferman, What ai-e the figures on that again, Mr. Miller,
do you have those ?
You see, your committee has all of our checks and all of our books.
Mr. Kennedy. During a G-year period i
Mr. Shefferman. I couldn't answer that. . That might be approxi-
mately the amount, but I wouldn't know it.
Mr. Kennedy. (Jur records show that he received during the 6-year
period, 1950 through 1956, $;38,500.
]Mr. Shefferman. Did you get that from our records ?
Mr. Kennedy. I believe we did,
Mr. Shefferman. If you did, tlien it must be all right, because we
gave you all of the records and we gave you everything we had.
Mr, Kennedy, What was Mr, Kessert s position ? What did he do ?
Mr. Shefferman. He was a contact man,
Mr, Kennedy, Did he also have ^ position in the teamsters union ?
Mr, Shefferman, I don't know, and I don't think so. I doubt it.
Mr. Kennedy, Out in Seattle ?
Mr, Shefferman. I doubt that,
Mr. Kennedy. You do not think so ?
Mr. Shefferman. If he did, I didn't know it,
Mr, Kennedy. Where did he work for you ?
Mr, Shefferman. He worked out of "Seattle and he used to go to
the conventions and we would see him around the conventions,
Mr, Kennedy, Wliat conventions?
]Mr, Shefferman. Labor conventions.
Mr. Kennedy. The teamsters ?
Mr, Shefferman, And several others and a good many of the other
conventions, AFL conventions, and some of the others.
1584 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Why did he happen to go to those conventions if he
was working for the Union Merchandising ?
Mr. Shefferman. He didn't go there to work for Union Merchan-
dise. He went to these conventions and I suppose he was invited to
them and I don't know why he went.
Mr. Kennedy. Who invited him to them ?
Mr. Shefferman. Well, he may have had other functions and I
wouldn't know. I really didn't Imow what other functions he has.
I think there was one time he belonged to some other union and I
don't know which one.
Mr. Kennedy. The retail clerk's union ?
Mr. Shefferman. Retail clerks, that is sometime ago. He was an
organizer or a member of the retail clerk's union.
Mr. Kennedy. Was he also, or did you understand he was asso-
ciated with the teamsters union in some capacity ?
Mr. Shefferman. I didn't know he was associated officially in any
way with the teamsters union. That I didn't know.
Mr. IvENNEDY. But he used to attend the union conventions ?
Mr. Shefferman. He attended a good many conventions and I
would see him in Florida and New York and Los Angeles, and
Seattle and all of the conventions. I attended a lot of them.
Mr. Kennedy. Tell me, and this is the Union Merchandising which
I want to come back to in a minute, but what other business transac-
tions did you have with Mr. Beck directly ?
Mr. Shefferman. As an illustration, what do you have in mind?
Mr. Kennedy. These are 2 checks, 1 dated January 17, 1950, on
the Harris Trust & Savings Bank, paid to the order of Dave Beck,
$4,000, signed Nathan Shefferman.
There is a second check dated July 23, 1949, Harris Trust & Sav-
ings Bank, paid to the order of Dave Beck, $8,000, signed by Nathan
Shefferman.
(The documents were handed to the witness.)
Mr. Shefferman. Were those the checks we saw today ?
Mr. Kennedy. Yes ; they are.
Mr. Shefferman. As I started to state before, I have known Mr.
Beck and known him very favorably and he has been a very good
friend.
Mr. Kennedy. Would you identify the checks first ?
Mr. Shefferman. I can identify them merely that they are made
out to Dave Beck on the Harris Trust, on my name.
Senator Ives. What is the date? Give us the date on them, also.
One check at a time.
Mr. Shefferman. $8,000, July 25, 1949, and January 17, 1950, for
$4,000.
Senator Ives. And you identify it, do you ?
Mr. Shefferman. Yes, sir ; I identify it because it is my signature.
Senator Ives. How about the other check ?
Mr. Shefferman. Which others ?
Senator Ives. All right, that is all. Those will be exhibits Nos.
117 and 118.
(The documents referred to were marked "Exhibits Nos. 117 and
118 for reference and will be found in the appendix on pp. 1685-1686.)
Mr. Shefferman. As I started to say, I have known Mr. Beck for
more than 20 years. Mr. Beck has been a friend and a very good
IMPROPER ACTIVITIES IN THE LABOR FIELD 1585
friend. Mr. Beck, if you will permit me, is a terrific personality. I
found him so. He is very attentive to his friends and very generous
to his folks and people who surround him.
Now, this is no laughing matter, if you knew him as I know him
and know all of the things he has done for a lot of the people out
in Seattle and the vicinity and in the region of this home, you would
come to the same conclusion I have.
I know of other things he has done for other people and I say in
all sincerity that Mr. Beck is a generous man and a terrific personality
and a very fine gentleman.
Mr. Beck, I realized, in the early days, after 1935 when I was in
this so-called employer-employee relationship business, I realized that
but for the teamsters, that w^as after the CIO and the AFL had split,
but for the teamsters there wouldn't have been any AFL.
I think they would have disintegrated. That is because the weaker
union had to depend upon the teamsters and they had to depend upon
the teamsters for whatever strength and whatever progress they
could make.
Eealizing that, and realizing further that it was well in my work,
public-relations phases of it, to mingle with a good many of the people
in labor as well as I did in management, I went about and made
speeches and wrote a lot of speeches, and I made them to labor.
I was invited to a good many unions and made speeches on free
enterprise, and I made speeches on the matter of working together and
not making a private battleground of our Nation.
Senator Ives. What years w^ere you doing this ?
Mr. Sheffeemak. I was doing' this all of the way, I should say,
probably from 1935, 1936, right up until only within the last year.
]VIr. Kennedy. Mr. Shefferman, could I suggest that you answer
the question about the checks?
Mr. Shefferman. This is part of the background, Mr. Kennedy,
and all I had in mind was the reason I had known Mr. Beck for 10
years when this matter of a check came up. At that time there had
been some convention, I think the teamsters convention, and they had
voted at the convention to introduce a new bookkeeping system, or a
visible file of some sort. They asked me at the time, Mr. Beck I don't
think had any office at the time, and I think Mr. Tobin was the head
of the union at the time, and he asked me whether I could make any
contribution to the matter of setting up this bookkeeping system or
the visible file system which they were transmitting to their locals.
I went in there with some accountants.
Mr. Kennedy. This is about 1948 ?
Mr. Shefferman. I don't remember the time. I went in there with
accomitants, and I got some bookkeeping experts, and we found some
factories because immediately after the war it was very difficult to get
certain items. I found the factories for the files and a lot of other
things. They also for many days brought in quite a few of the audi-
tors who helped to pass on the formation of this new bookkeeping
system, together with a new type of dues book, and so forth. We did
our business through a dealer, my son and I, we both worked at it for
a considerable time, for which both of us were paid.
I think that it was some 20 percent, and I don't recall, whatever it
Mas, and I decided at that time
80330—57 — pt. 5 6
1586 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kexxf.dy. That was approximately $01,000 that you got paid
from the teamsters for that work?
Mr. SiiEFFERMAX. Over a period of 3 years, I am tokl, and they
told me that this mornina:, and I didn't see the figures until then.
Mr. Kennedy. In 1948, 1949, and 1950 you got paid approximately
$61,000?
]Mr. Sheffermax. My son and I.
Mr. Kennedy. From the teamsters union?
Mr. Shefferman. Yes, sir. Oh, no, we didn't get that from the
teamsters union. We got that from the dealer. We didn't get that
from the teamsters.
Mr. Kennedy. That is for the work you did ?
Mr. Shefferman. I almost walked into that one. We didn't get
that from them. ^Ve got that from the dealer.
Mr. Kennedy. That was for work that you had done for the
teamsters ?
Mr. Shefferman. In placing this bookkeeping system for the
teamsters which they introduced all over the Nation.
At that time, I had decided, and I think it was that j'ear or the fol-
lowing year, I talked it over with my boy, and I remembered that
because it was Mr. Beck's taking me by the hand and introducing me
to a good many j^eople all over the Nation, and helping me with my
speeches, and giving me speech material, and I in turn doing the same,
and we were fighting — and please, this is in all seriousness — together,
and we put u]) a terrific fight on the matter of anticommunism and the
key of the free market place. Everything of this is on record. If it
had not been for Mr. Beck there were a good many places that I
couldn't have gone, and I felt, and please believe me when I tell you
he didn't ask for anything, and I asked him to accept this money,
whatever it was, that I gave him at that time because I had benefitect
as a result of his help and his constant companionship.
Mr. Kennedy. Well, you liked him and you gave him the money?
Mr. Shefferman. Pardon me?
Mr. Kennedy. You liked him so you gave him the money?
Mr. Shefferman. Sure. I thought he was entitled to it, and I
hadn't done anything for him for 10 years and I had known him for
more than 10 years and I hadn't done a thing, and I felt that he was
entitled to this.
Mr. Kennedy. You thought he was entitled to the money ?
Mr. Shefferman. Yes, sir.
Mr. Kennedy. Now, because of things he had done for you ?
Mr. Shefferman, Things he had done for me in the way of helping
me write my speeches, and providing materials, and introducing me
to a good many unions that I could never have gotten into.
Mr. Kennedy. The records show that from 1949 to 1950, and just
for those '2 years, that you paid Mr. Beck some $24,500, of whicli these
•2 checks are a part.
Mr. Shefferman. He says that was the full amount, they tell me,
that I decided that I thought he was eutitled to.
Mr. Kennedy. You thought he was eutitled to it ?
Mr. Shefferman. Yes, sir.
Mr. Kennedy. You thought that for his being able to get you this
origiual coutract — ■ —
IMPROPER ACTIVITIES IN THE LABOR FIELD 1587
Mr. SiiEFFERMAN. Well, I don't know whether he got nie the original
contract. I think he helped to recommend it, because it was voted in
the convention.
Mr. Kp:nnedy. Did you think he should get a percentage of the
$61,000 tliat you made '.
Mr. SiiErrERMAX. I don't know wliether it is a percentage, and I
just thouglit I had done pretty well, and I was up in the higher tax
brackets, and I thouglit tliat I could very well afford to give him
some money.
Mr. Kennedy. You felt that for what he had done for you you
owed him something '\
Mr. SiiEFFERMAN. I felt that he was entitled to sometliing, and I
didn't owe liim anything, and I felt he was entitled to it.
Mr. Kennedy. Were there other services that he performed for you ?
Mr. SHEFFER]\rAN. No other services other than he took me by the
hand and introduced me to a lot of people — pardon me, what is
that? — I got aci'oss a lot of things to unions that nobody has ever
been able to tell them.
Mr. Kennedy, During this period of time you were the labor
consultant of labor unions, or employers, or whom?
Mr. Shefferman. Employers strictly ; never labor unions.
Mr. Kennedy. You were the labor consultant for employers ?
Mr. Sheffer:man. For a good many employers.
Mr. Kennedy. And you paid him compensation for wliat he did
for you, some $24,500 ; is that right I
Mr. Shefferman. Over tlie years.
Mr. Kennedy. 1<)49 and 1950.
Mr. Shefferman. Not for 1949 and 1950, but what he had done in
all of the years past. Being in the high tax bracket, I thought that I
could very well aiford to take some of that money and give it to him
voluntarily, and I gave it to him in a check.
There were several checks, I am told; is that true? Sure, sei^eral
checks.
Mr. Kennedy. Did you take a tax exemption on that ?
Mr. Sfiefferman. Did I take a tax exemption ?
Mr. Kennedy. As a business expense or gift, or what ?
Mr. Shefferman. What did I clo ? Pardon me ?
I took a tax deduction and filed, what do you call it, an information
return, whatever that is.
Mr. Kennedy. What does that me^n ?
Mr. Shefferman. Tell me what an information return is; I don't
know.
Senator Ervin. It means that Mr. Beck was his emi)loyee in his
business.
Mr. Shefferman. No; he wasn't. He was not. We didn't deem
him an employee at all.
Senator Ervin. It means that you i-epresented that Mr. Beck was an
em])loyee on your income tax return.
Mr. Shefferman. Xo ; I did not.
The Chairman. Did you charge it off as expense to your business?
Mr. Shefferman. Yes; I think we charged it off as ex])ense to the
business. I haven't looked at the record, and T don't know nmch about
them and I am not there 95 percent of the time.
1588 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. So you did not pay tax on it ?
Mr. Shefferman. I did not pay tax — under what
Mr. Slater. May we have a moment, Mr. Chairman ?
The Chairman. Yes, sir.
Mr. Shefferman. Let me get this straight. Mr. Kennedy, or Mr.
Chairman, if you please, as I gather it now. Union jMerchandising —
what is the story — was a partnership, my son and I. It took no deduc-
tion. I personally took the deduction.
The Chairman. The partnership took no deduction ?
Mr. Shefferman. No.
The Chairman. But when you gave the money away, you took a
deduction on your personal income ?
Mr. Shefferman. Is that right ? Yes. Okay.
Senator Mundt. On what basis, jMr. Shefferman ? On what basis
did you personally get a deduction ?
Mr. Shefferman. I felt that Mr. Beck had rendered friendship
and service all through the years, some 10 or 15 years.
Senator Mundt. You mean you took a deduction as a gift or as a
cost of doing business ?
Mr. Shefferman. I don't think it was a gift. Just a minute — well,
as a matter of fact. Senator Mundt
Senator Mundt. You just cannot take a deduction, you have to
have a reason.
Mr. Shefferman. After all, I was advised by my attorneys and by
my accountants.
Senator Mundt. It is perfectly proper for your attorney to advise
3^ou, but I want to know on what basis you took the deduction.
Mr. Shefferman. My association with Mr. Beck and because of
him, and my association with him, of the unions, in getting to know
a good many of the union people and other people, too, and in manage-
ment. I was able to get business or rather recognition from a lot of
the manufacturers.
Senator Mundt. I understand all of that, and I am not questioning
that, but I am simply questioning you on what basis did you take a
$24,000 tax deduction.
Mr. Shefferman. I would have to ask my accountant for that.
(Witness consulted with his counsel.)
Mr. Shefferman. The answer is that he aided me and recommended
me for this visible file contract business for one thing, and the other
my affiliation or association with him helped to get considerable
business.
Senator Mundt. I am familiar with the background, and I am just
asking you the one question, when you wrote out your income tax and
decided you were going to make available to Mr. Beck $24,000 on which
you were not going to pay taxes to the Federal Government, whether
that was listed as a cost of doing business or did you list it as a gift?
How did you do it ? That is what I am trying to get at.
Mr. Shefferman. What is the answer ? Let us find out.
]Mr. Slater. May I answer your question, sir ?
Senator Mundt. You tell him, and let him answer.
Mr. Shefferman. You tell me, and let me answer.
(Witness consulted with his counsel.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1589
Mr. Sheffermax. To my best knowledge and belief, it was a so-
called page 3 deduction, which my accountants told me I could take.
Senator Mundt. Now, will you consult with your lawyer and then
tell me what a page 3 deduction is?
Mr. SHEFFERMAisr. That is what I would like to know.
Senator ]Mundt. We are all interested in deductions. Let us get
that in the record.
Mr. Sheffermax. You can make a lot of deductions out of the
things I am saying, but what is this page 3 deductions?
(Witness consulted with his counsel.)
Mr. Sheffermax. I am advised that a page 3 deduction
Senator Ervin. What is on page 3? Is that a deduction for chari-
table contributions ?
Mr. Shefferman. Oh no.
Senator Ervin. What is page 3 ?
Mr. Shefferman. There is a miscellaneous section there.
Senator Mundt. The Government wants it more meticulous than
just "miscellaneous."
Mr. Shefferman. It is both business and
(Witness consulted with his counsel.)
Mr. Shefferman. We don't have a return here, Senator, and now
they tell me they are not sure it was taken on page 3.
We will have to look up the return.
Senator Mundt. Did you take it as a gift ?
Mr. Shefferman. No ; Oh no.
Senator Mundt. Therefore you must have taken it as a cost of doing-
business.
Mr. Sheffer3Ian. Yes, sir, probably a cost, probably as a cost of
expense for doing business, because it brought me business and I had
nothing that was definite or traceable.
Senator Mundt. You listed it as a cost of doing business ?
Mr. Shefferman. I think so, and I haven't got the return.
Senator Mundt. That is what I was trying to establish.
Mr. Shefferman. We would have to look at the return.
Senator Mundt. You only have two choices. It is either a gift or a
cost of doing business.
Now, you could list a variet}^ of waj's as a cost of doing business.
Mr. Shefferman. The counsel tells me that the only way I could
show this was as a business deduction and business expense.
Senator Mundt. That is what I am trying to find out.
Mr. Kennedy. Before we break up, I have a matter to bring up.
The Chairman. The Chair wishes to recess pretty soon. Do you
have something else?
Mr. Kennedy. I just wanted to put this in the record. j\Ir. Shefl'er-
man was unable or did not know about Norman Gessert.
Mr. Shefferman. Wait a minute. Take it easy, Mr. Kennedy.
What do you mean ?
Mr. Kennedy. You did not know what his position was with the
teamsters.
Mr. Shefferman. No, I didn't.
Mr. Kennedy. He lists himself as an organizer for the teamsters.
Mr. Shefferman. That I didn't know.
1590 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. In 1956 lie received $13,000.67, and in 1955, $10,-
998.67, and in 1954, $5,650. He is also listed as a delegate, Mr. Chair-
man, and received the $750 delegate expenses.
Mr. Sheffermax. I don't remember that, Mr. Kennedy.
Senator Mundt. Are we going to have Mr. Sheff'erman here in the
morning?
The Chairman. It is apparent that we cannot get through tonight,
so I think that we have put in a pretty full day's work, and the Chair
will recess the committee until 10 o'clock in the morning, both wit-
nesses returning. That is both Mr. Beck and Mr. Shefterman.
(Thereupon, at 4: 55 p. m., the hearing was recessed, to reconvene
at 10 a, m., Wednesday, March 27, 1957.)
INVESTIGATION OF I3iFR0PER ACTIVITIES IN THE
LABOR OR MANAGEMENT FIELD
WEDNESDAY, MARCH 27, 1957
UxiTED States Senate,
Select Committee ox Improper Activities
IN the Labor or Manage3ient Field,
Washington^ D. C.
The select committee met at 10 a. m., pursuant to Senate Resolution
74, agreed to January 30, 1957, in the caucus room. Senate Office Build-
ing, Senator John L. McClellan (chairman of the select committee)
presiding.
Present: Senator John L, McClellan, Democrat, Arkansas; Senator
Irving M. Ives, Republican, New York; Senator John F. Kennedy,
Democrat, Massachusetts; Senator Sam J. Ervin, Jr., Democrat,
North Carolina ; Senator Pat McXamara, Democrat, Michigan ; Sen-
ator Joseph R. McCarthy, Republican, Wisconsin; Senator Karl E.
Mundt, Republican, South Dakota ; Senator Barry Goldwater, Repub-
lican, Arizona.
Also, present : Robert F. Kennedy, chief counsel to the select com-
inittee ; Jerome Adlerman, assistant counsel ; Alphonse F. Calabrese,
investigator; Carmine Bellino, accountant consultant; Ruth Young
Watt, chief clerk.
(Members present at the convening of the session: The chairman,
Senators Ives and Kennedy.)
The Chairman, The committee will be in order.
The Chair makes this observation at the beginning of the hearings
today. The Senate went into session at 10 o'clock this morning and
we have some legislation pending to which a number of amendments
will be offered. It is anticipated there will be a number of rollcalls
on these amendments and on the bill for final passage. That means
froni time to time we may have to interrupt these hearings tempo-
rarily, so that we can meet our responsibilities on the floor of the
Senate.
I also understand even a quorum call today is what we term a
"live"' quorum call, which means that you must be present. That is
going to handicap us some but, in spite of those difficulties, we are
going to continue these hearings in the hope that we may conclude
today.
All right, Mr. Counsel, who is your fist witness.
Mr. Kennedy. Mr. Nathan Shefferman, please.
The Chairman. Come around, Mr. Shefferman.
1591
1592 IMPROPER ACTIVITIES IN THE LABOR FIELD
TESTIMONY OF NATHAN W. SHEFFERMAN, ACCOMPANIED BY HIS
COUNSEL, HOWARD R. SLATER— Resumed
The Chairman. All riglit, Mr. Counsel, let us proceed.
Mr. Kennedy. Mr. Shefl'erman, we were discussing your relation-
ship with Mr. Dave Beck. Now, during the course of the years 1949,
1950, 1951, 1952, and part of 1953, were you performing some services
for Mr. Dave Beck?
Mr, SriEFEERMAN. No.
Mr. Kennedy. Were you making any purchases for him^
Mr. Shefferman. Yes; considerable.
Mr. Kennedy. You made considerable number of purchases for
him ?
Mr. Shefferman. Yes, sir.
Mr. Kennedy. Now, would you think that, reviewing the records
as you have, the purchases for the years 1949, 1950, 1951, 1952, and
1953 amount to approximately $94,000 ?
Mr. Shefferman. So I was advised. Pardon me. I thouuht it
was $85,000.
(The witness conferred with his counsel.)
Mr. Shefferman. I understand that this $94,000, Mr. Kennedy,
was that since 1949 ? I thought it was 1947.
Mr. Kennedy. No ; this is the situation : Since 1949, as I understand
it, Mr. Shefferman, there have been purchases amounting to $94,000.
Now, out of those purchases, $85,000, approximately, has been paid
out of union funds, and I want to get into that matter with you. You
are familiar with the figure $85,000; is that right?
Mr. Shefferman. I have been told there was an $85,000 figure.
Mr. Kennedy. Let us work on the figure of $85,000.
Mr. Shefferman. I think it was merchandise for more than Mr.
Beck alone. I think it was for Mr. Gessert.
Mr. Kennedy. Mr. Norman Gessert?
Mr. Shefi-erman. I think so, and, I think, his family.
Mr. Kennedy. Mr. Dave Beck, Jr. ?
Mr. Shefferman. Probably Mr. Beck, Jr., and other people, I have
been told. I don't know.
Mr. Kennedy. And Mrs. Dave Beck ?
Mr. Shefferman. And probably some others, a good many others.
I understand he has been buying merchandise for other people.
Mr. Kennedy. But the merchandise was purchased in his name,
except in the cases of Mr. Norman Gessert and Mr. Dave Beck, Jr. ?
Mr. Shefferman. Well, not on the shipping notice, and I can't
say. Mr. Kennedy, I have been away 90 to 95 percent of the time, as
I indicated to you before.
Mr. Kennedy. Excuse me ?
Mr. Shefferman. I have been away from my office from 90 to 95
percent of the time. These purchases would come in and these orders,
whatever they were, or a combination, and they would go to the secre-
tary and they would call the f a.ctory or write them a note, or whatever
it was, and merchandise was shipped according to instructions by
whomever bought the merchandise. I think in this particular in-
stance that you are talking about, these instances, I think that Mr.
Beck bought for himself and others. As to whether or not he bought
for Mr. Gessert, also, they may find in the records; you have them
IMPROPER ACTIVITIES IN THE LABOR FIELD 1593
and I haven't them. You may find in the records the possibility that
Mr. Gessert bought some things on his own, as well as the young man.
That is a possibility, and it would be shown in the records.
Mr. Kennedy. Now, are you aware of the fact that, from the years
1949 to 1953, Mr. Beck made purchases through you of approximately
$85,000?
Mr. Shefferman. That is what I am advised according to the
records.
Mr. Kennedy. According to the records ?
Mr. Shefferman. That is what I am advised.
Mr. Kennedy. That would be according to your records and your
own accountants?
Mr. Shefferman. That is true, I think, according to tliem.
(The witness conferred with his counsel.)
Mr. Shefferman. You see, so far as the records were concerned,
someone would call up or write a note and say they wanted something.
Mr. Kennedy. I will get into an explanation, and let us agree first
on the figure of approximately $85,000.
Mr. Shefferman. According to the records, Mr. Kennedy, I think
there Avas. 1 got the figures from your own people, some $100,000 that
had been bought for many people, both labor and industry, through
the same identical ])eriod.
Mr. Kennedy. We are now talking about Mr. Dave Beck, and I am
sure we Avill get to some of the otlier people at a later date.
Mr. Shefferman. That is right.
Mr. Kennedy. Now we are talking about Mr. Dave Beck's pur-
chases. What procedure did he follow w^ith you? He would call and
say that he wanted something?
Mr. Shefferman. He would call and tell me. If I saw him, he
would like to have an icebox or 2 or 3, or probably a washing machine,
something else, and whatever it may have been. He would tell me or
he would call the girl or have his own secretary call someone, it was
turned over to the manufacturer or wherever it came from, or probably
a discount house, with instructions, whatever shipping instructions he
had given at the time, or he or someone else.
Mr. Kennedy. Now, in addition to making or asking you to pur-
chase materials for him, or items for him, would he also contact you
about paying some of his personal bills, hotel bills ?
Mr. Shefferman. Occasionally, Mr. Kennedy. Hotel bills, I don't
think there were any hotel bills.
Mr. Kennedy. Or doctors' bills?
Mr. Shefferman. Pardon me ?
Mr. Kennedy. Doctors' bills?
Mr. Shefferman. There might have been, from what I haA-e been
told, as I indicated I was not familiar with the records, that there may
have been some bills for, oh, someone mentioned something about
nursery material, and something else.
Mr. Kennedy. And his dentist? Do you remember paying some of
the dentist bills?
Mr. Shefferman. I think there was one morning, if I recall, he
turned up in Chicago with a broken plate, and it was about 7 o'clock
in the morning. I had to get a chap out and get into the laboratory
to fix his plate, for which I think there was a bill of about $8, and natu-
rally I just paid it and I think charged it to him.
1594 IMPROPER ACTIVaTIES IN THE LABOR FIELD
Mr. Kennedy. Now tell me this, Mr. Sliefferman : Did you know
at the time that the moneys that you were receiving 'to pay for these
bills of Mr. Beck were money from the union ?
Mr. Shefferman. I did not know, because I never saw any of the
bills, and I never saw any of the money or the checks. The checks
were opened or the letters were opened, and the checks taken out by
the office staff, particularly the secretary or clerk, and then was ac-
counted for. But I never saw any of the checks, and the first time
I ever saw any of the checks was when they were ])resented to me
under the tax investigation, but until such time I never saw any of
them.
Mr. Kennedy. Now, before we go into that, I Avould like to present
you some mimeographed sheets here which are samples of some of the
items that you purchased for Mr. Dave Beck.
The Chairman. Counsel may state how these items were discovered,
and how they were arrived at.
Mr. Kennedy. Mr. Chairman, we have from Mr. Sheft'ermnn the
bills for some of the items that were purchased for Mr. Dave Beck.
The Chairman. These items are taken from the bills and records
of Mr. Shefferman ?
Mr. Shefferman. Yes. Mr. Kennedy, may I please ask for some
consideration here, because the implication is particularly not a de-
sirable one. It says "samples of items purchased for Dave Beck by
Nathan Shefferman with teamster union funds."' I did not know
they were union funds.
Tlie Chairman. It is perfectly proper for you to say you did not
know it. But if the facts have since developed, and you have learned
that they were purchased with union funds, then there is nothing
misleading about it. You did not know it at tlie time ?
Mr. SHEFFERatAN. No ; I didn't know it at the time.
The Chairman. It did not come to your attention until after the
goods were paid for ?
Mr. Shefferman. Were paid for ; yes. And you see, may I give you
an idea of how these transactions were done? 'VYhen the occasion
arose or a rec{uest arose for one of these items, or more than one time,
we would send to the factory, or wherever it came from, and I would
pay with my check, personally, long before I ever got paid.
Tlie Chairman. I understand. He was using you as a procuring
agency, in effect.
Mr. Shefferman. I don't like the words "procuring agency." It
was a purchasing agent.
The Chairman. When vou purchase, vou usnallv procure, do von
not?
Mr. Shefferman. Yes.
I won't quibble over words.
The Chairman. I am very happy to accept your terminology, and
call you the purchasing agency for Dave Beck. Is that fair ?
Mr. Shefferman. Thank you very much. This still bothers me,
when I read this, and it sounds like throwing a drowning man a
rope with a couple of ends.
The Chairman. How does it bother you ?
Mr. Shefferman. Well, "by Nathan Sliefferman with teamster
union funds." I did not know that they were bought with union
funds.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1595
The Chairman. Well, is there anything false about it ?
Mr. Shefferman. No, since I have found out that they M'ere bought,
but I didn't know it at the time.
The Chairman. Well, if there is nothing false in the statement, and
if it is a fact, we need not challenge it. Do you make the explanation
that this is so ?
Mr. Shefferman. Mr. Chairman, if you please, I was reimbursed
with union funds and I laid out my own money. You see, tech-
nically, if you will pardon me, I actually paid for it not with union
funds, and I first paid with my own funds.
The Chairman. So far as Mr. Beck paying, he paid with union
funds?
Mr. Shefferman. Well, that is true.
The Chairman. Is that true ?
Mr. Shefferman. That is true.
The Chairman. You paid your own money for it ?
Mr. Shefferman. That is right.
The Chairman. You were reimbursed from Mr. Beck ?
Mr. Shefferman. I was reimbursed.
The Chairman. Out of union funds ?
Mr. Shefferman. Couldn't we say it that way ?
The Chairman. Yes, sir ; we will say it that way.
Mr. Shefferman. I thank you very much.
The Chairman. All right. All we want is just the facts.
Mr. Shefferman. I was reimbursed.
The Chairman. We are kind of splitting hairs.
Mr. Shefferman, All right ; thank you very much.
The Chairman. Go ahead, I will let you have the largest split.
Mr. Shefferman. Thank you.
Mr. Kennedy. Mr. Chairman, I would like, to make an explanation
here. There are two sheets. This first mimeographed item consists
of 3 pages, and there is another one of just 1 page. There are some
items on the first mimeographed sheet for Dave Beck. The second
group is all of Dave Beck, and it is just a more complete list for Dave
Beck.
There are some items that are repetitious from the first mimeo-
graphed sheet.
(At this point. Senator Mundt entered the hearing room.)
The Chairman. Take that mimeographed sheet and start reading
from it and see if you identify that you purchased those articles.
Mr. Shefferman. As best I remember.
Is this a copy of an invoice, Mr. Kennedy, or just a sample?
Mr. Kennedy. I took some samples from various bills.
Mr. Shefferman. It would be difficult, I think, to talk of shirts.
Mr. Kennedy. I can present each one of them to you if you like.
The Chairman. Have you examined those invoices ?
Mr. Shefferman. No ; I haven't.
Mr. Ivennedy. I gave this to your accountant yesterday.
Mr. Shefferman. I didn't see them, and it is perfectly all right.
We accept them.
Mr. Ivennedy. It was a sampling.
Mr. Shefferman. Now, shirts, yes; he wears pretty good shirts,
and I don't know whether he bought them for himself or other
people.
T596 ""^ IMPROPER ACTIVITIES IN THE LABOR FIELD
Tlie Chairman. It does not matter who he bought them for. He is
the one who made the purchase and he is the one who paid for them
out of union funds.
Mr. Sheffeeman. Coldspots and radios, golf balls. I don't think
he plays golf so he must be very generous and gave away the golf-
balls.
The Chairman. He probably did ?
Mr. Sheffeeman. Yes, sir.
]Mr. Kennedy. Paid for by union funds.
Mr. Sheffeeman. Now, I said up to now I didn't know that at all.
]Mr. Kennedy. You are just saying he was generous, and I want
to clarify it.
Mr. Sheffeeman. I paid for it and then I was reimbursed.
Nylons, white, yes ; and two silk shirts, yes ; and sheets and cases,
Bendix washer, and I don't know where you dug all of these up. You
say they are in the record. Are they ?
If they are, they must be there.
Two (lozen sheets, 5 shirts, 2 white silk shirts, football tickets.
Those I don't know, he usually gets the football tickets, and not I.
Twenty-one pairs of nylons. Well, wait a minute. Gentlemen,
please, the implication — I happen to know Mr. Beck is a moral man,
and so it is perfectly all right.
(The witness conferred with his counsel.)
Mr. Sheffeeman. Five dozen diapers. AVliere that came from, I
don't know. Two cases of shells. A watch for golf clubs.
What is a watch for golf clubs? That is a new one.
The Chaibman. I would not know.
Mr. Sheffeeman. Neither do I.
The Chaieman. Go ahead.
Mr. Sheffeeman. Hose, and now I don't know whether those are
nvlons or just hose.
^ Shells.
The Chairman. What is the amount of those hose?
Mr. Sheffeeman. $124. That must have been a garden hose or
some such thing as that. Otherwise, it would have said hosiery or
some such thing.
The Chaieman. It may be a garden hose.
^Ir. Sheffeeman. It may be a garden hose and I am just guessing.
The Chaieman. All right.
yiv. Sheffeeman. Moreover, as I read these, and while it was paid,
lie liad paid ostensibly with union funds, I understand that this money
has been borrowed from the union as I have been told and returned.
The Chairman. That is what we have not been able to find out.
We have been asking Mr. Beck about that for a whole day here yester-
day and we could not find out.
Mr. Shefferman. Well, I understand from many, many sources
that he borrowed the money and he returned it.
Senator Mundt. The only source we have on that is a radio broad-
cast Mr. Beck made, which he refused to acknowledge before our com-
mittee and so I assume that unless you have a better source of informa-
tion you can supply the committee
Mr. Sheffeeman. I haven't any other than what I have been told.
Senator Mundt. You just heard the same broadcast in substance,
which was repudiated by Mr. Beck yesterday.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1597
Mr. Shefferman. I didn't know. I haven't talked with Mr. Beck
for several months.
Senator Mundt. You indicated you understood it was borrowed.
Mr. Sheffermax. No; just wliat I got from the newspapers, and
the broadcast or whatever it was.
Senator Mundt. You did not get it out of this hearing.
Mr. SiiEFFERMAN. No. Royal typewriter, Jayson shirts — we are
doing a lot of advertising here now — Hathoway shirts. Sear's type
outboards, Johnson outboard, Shavemasters, radio combination.
Hoover vacuum, New York Hotel.
Well, that I don't know. I don't remember paying that kind. I
may have and he may have had to leave in a hurry and I don't
remember.
"Shoes and shirts for the Seattle bunch." What do they mean
"for the Seattle bunch"? I understand they bought a lot of things
for people.
The Chairman. That is the Seattle bunch ?
Mr. Shefferman. Yes, sir.
The Chairman. Can you identify that "bunch" ?
Mr. SiiEFFERMAN. He is surrounded with a lot of nice boys and
nice men whom he has brought up and taken out of the colleges and
groomed them. That is a notation by the girl, I see.
Five one-half power motor, Coldspot freezer, automatic washer.
Mr. Kennedy. How much are those ? How much is the motor ?
Mr. Shefferman. The motor is $144.15. That must be
Mr. Kennedy. An outboard motor?
Mr. Shefferman. No; I think it might have been a motor for a
freezer, or outside freezer or some such thing and I really wouldn't
know.
One bow tie. Now, that is the payoff. That one I didn't know.
I never knew he wore a bow tie.
Kaiser roofing sheet, custom-made tie, 12 pairs Magna binoculars,
chairs, tables, loveseats, settee and lamps, tables and chow bench,
smoke, and so forth.
The Chairman. You are observing the amounts ?
Mr. Shefferman. The amounts?
The Chairman. You are observing the amounts of those ?
Mr. Shefferman. Yes; and Sulka ties and shirts were $192.65.
And 2 coats were $303.60.
The Chairman. We did not get these others. Start up there with
the bow ties.
Mr. Shefferman. It was $3.50.
The Chairjvian. Just above that six pairs of knee drawers.
Mr. Shefferman. $27.54; yes.
The Chairman. Now, come down to the Kaiser roofing sheet.
Mr. Sheffermax. I still don't know what knee drawers are.
The Chairman. I do not know either.
Mr. Shefferman. All right, lamps, tables, Kaiser roofing sheet,
$1,431.27; custom-made tie, $14; 12 pairs Magna binoculars.
Senator Mundt. Would you explain a little more about Kaiser
roofing sheet?
Mr. Shefferman. I couldn't really, because I didn't know^ it. I can
only imagine it might have been for some of the housing and I can't
say.
1598 IMPROPER ACTIVITIES IN THE LABOR FIELD
Pardon me? How this came about is that if anyone calls I seldom,
miless they ask me personally, I seldom, Senator, get the so-called
request. It is turned over to someone in the office and they usually
look after it.
I don't know. I seldom, if ever, see them unless they make a per-
sonal request and I do not specifically recall any Kaiser roofing sheet.
If I attempted to say anything else, I would really be guessing. I am
merely assuming.
The Chairman". That seems to be a pretty good item. I assume that
is building material of some kind.
Mr. Shefferman. It might be building material.
The Chairman. $1,431.27?
Mr. Shefferman. Yes, sir.
The Chairman. Would you assume that is some kind of building
material ?
Mr. Shefferman. I would assume so.
The Chairman. Custom made tie, $14 ; and what is the next ?
Mr. Shefferman. Twelve pairs Magna binoculars, $354. I think
that I have a faint recollection that they might have been some binoc-
ulars that came from the other side somewhere, some inexpensive
binoculars.
The Chairman. Imported ?
Mr. Shefferman. I think that they were. I have just a faint
The Chairman. Something a little special ?
Mr. Shefferman. I think so. I don't know.
Chairs, tables, love seats, settee, and so forth, $1, 242.45. I wouldn't
know what that was for unless it might have been, and I am strictly
guessing, what do they call those — rumpus rooms, are they ?
The Chairman. A love seat for a rumpus room ?
Mr. Shefferman. Well, it is a good combination anyway. It is a
good place to have a rumpus, anyhow.
Lamps, tables, chow bench, smoke, and so forth. I don't know what
those mean.
The Chairman. As you observe the item, as you go along, if there
is any there that you challenge, why, say so and otherwise we will put
the whole thing in the record.
Mr. Shefferman. I can't challenge them because I don't know. I
don't know anything about them as a matter of fact, other than as-
sumptions and it merely passed through the office.
Senator Kennedy. Did you not make out the checks in payment for
these bills?
Mr. Shefferman. No ; I never made out the checks.
Senator Kennedy. ^V\\o signed your checks ?
Mr. Shefi-t.rman. I signed the check and sometimes I would leave
as many as a dozen or two dozen checks when I am away signed, the
secretary or the girl in the office fills them out.
Senator Kennedy. It seems to nie. yesterday and today, that you
are removing yourself from responsibility for a lot of different actions.
It seems to me that you signed the checks and, therefore, I do not
think it is correct for you to come before this committee on a matter
of this importance and state that you were not aware of these pur-
chases for Mr. Beck.
I am not talking about whether you did or did not know where the
monev was coming from.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1599
Mr. Sheitermax. I ^vas thoroughly aware that I was paying for
the purchases, because when they brhig me a check and bring me 5
or 6 or lU at a time, I woukl merely sign them, and not even question
\\here they Avere going and I do that right along and I always have.
There have been times, Senator, if you please, that the checks — I
leave as many as a dozen checks when I go away, signed, for this spe-
cific purpose and I never even fill them out.
Senator Kennedv. It cannot be a matter of indifference to you that
3'ou paid a check for $l,-lol.2T for a Kaiser roohng sheet. You were
aware of that, were you not ?
Mr. Sheffekman. I don't think so. If I were a^vare of it — pardon
nie — if you have the invoice, maybe I can identify it but really I
may have been out of the office.
Senator Kennedy. You signed the check in payment for it, did you
not^
Mr. Shefferman. The check may have been signed and the girl may
liave had it. The secretary may have taken that check and merely
filled it in because slie had complete instructions and complete au-
thorit}' and full trust to Avrite and fill in any checks.
Senator Kennedy. The reponsibility is very clearly yours. I can-
not believe that you ran your office in such a way that you were not
aware of what purposes checks to the amount of $1,431, or $1,242, or
$919 were being made out for.
Mr. Shefferman. Senator, I am not denying that it was paid with
my check and that I had paid. I don't remember or I can't remember
having made out that check. There have been hundreds and hundreds
of checks, thoustinds of checks, that clear through that office that I
have been buying things for more than 400 people, maybe 500 people,
and everyone in the oiTice will tell you that I seldom, if ever, see the
checks. That is, other than signing; them. Now, this can be confirmed
Ijy the office stall and everybody in the office, particularly the lady
who liad charge of the checks.
(At this point in the proceedings. Senator McCarthy entered the
hearing room.)
Senator Kennedy. The only point I want to get at is that the re-
sponsibility is very clearly yours.
Mr. Shefferman. Tlie responsibility is definitely mine because I
paid for it.
Senator Kennedy. Tliat is correct.
Mr. Sheftorman. I paid for it, but I did not know what the specific
items were or any item that you might ask about. I would not know
because as I said I either filled in the cliecks before I left or signed
theui without IvJiowing. It is a common practice. You will see them
walk in and give me 10 or 15 checks and I merely signed them and I
don't look at them, ])articularly the secretary, because it is entirely
in her hand and slie lias been handling them.
Senator, if you please, there have been, according to the records,
over $400,000 wortli of this mercliandise purchased at discount for
various peo])le. I realiy wouldn't know one check from anotlier.
Senator Kennedy. How much of that amount went for the pur-
cliases for heads of labor unions?
Mr. Shefferman. When you speak of "heads" it is hard to say,
when you speak of the lieads of labor unions.
1600 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Kennedy. Officials of labor unions.
Mr. Sheffeeman. Well, relatively few.
Senator Kennedy. How many?
(The witness consulted with his counsel.)
Mr. Shefferman. You mean in dollars and cents ?
Senator Kennedy. In numbers of checks or dollars and cents.
Mr. Shefferman. I wouldn't know. I can check back for you,
and if we get the records we will be very happy to give you a record
of that.
Senator Kennedy. I think this is important. Here is a man who
is the attorney for companies on labor-mangement problems.
Mr. Shefferman. I am not an attorney.
Senator Kennedy. You are in public relations and industrial
problems.
Mr. Shefferman. Public relations; yes.
Senator Kennedy. On labor-mangement problems.
IMr. Shefferman. Yes, sir; on employer-employee relations and
educational programs.
Senator Kennedy. For employer-employee relations.
Mr. Shefferman. Yes, sir.
Senator Kennedy. And you represent the employers side?
Mr. Shefferman. Strictly the employer.
Senator Kennedy. And you are making purchases in the amount of
many thousands of dollars for various items for officials of labor
unions.
Mr. Shefferman. Senator — pardon me ■
(The witness consulted with his counsel.)
Mr. Shefferman. This is the only manner in which I had to build
good will, and I had no other thing. We don't advertise, and we
don't solicit and we don't have any formulas and no prescriptions or
anything of the sort.
As a consequence the only manner in which I could develop good will
was when I attended as I said, these conventions, both unions and the
others, and particularly in quite a few of the union conventions.
You may have copies of the speeches that I made to them on free
enterprise and told them not to make a battleground out of the United
States, that people could together.
Senator McCarthy. The witness is not answering the question.
Mr. Shefferman. What was your question?
Senator Kennedy. The point that I wanted to make is whether you
knew this money was coming out of the teamsters or not when you were
making purchases.
Mr. Shefferman. I did not know that at the beginning.
Senator Kennedy. But you were making purchases in the amount
of $85,000 or $90,000 for Mr. Beck over a period of 3 or 4 years involv-
ing personal items for Mr. Beck at a time when you were a public
relations representative for employers. I suggest that that is highly
improper.
Mr. Shefferman. Well, I was merely building good will and I
don't know it was particularly improper, any more than it was when
I was buying for people in management.
Senator Kennedy. The question is about the method by which you
build. You bought a house, with Mr. Beck and you made many
IMPROPER ACTIVITIES IN THE LABOR FIELD 1601
personal purchases for Mr. Beck and the question is, as the repre-
sentative of the employers whether that is a proper action for you to
take involving a labor official of a union with which many of the
companies you represent have contracts.
Mr. Shefferman. Well, I would rather be friends with them than
enemies.
Senator I^nnedy. The question is what you do to be a friend and
the question is whether it is a proper action for you to make pur-
chases of $85,000 and go into a deal in a house and so on, whether
that is a proper way to cement a friendship in view of the responsi-
bilities that Mr. Beck had toward the members of his union and in
view of the responsibilities that you had toward the employers who
were hiring the members of his union.
Mr. Shefferman. Senator, may I advise you that I never even
negotiated anywhere at any time with Mr. Beck. It was a friendly
relationship that arose in consequence.
Mr. Beck had so many problems, I imagine he used to find it relax-
ing and we never even talked shop when we were together.
Senator Kennedt. You may not have negotiated to contract but
Mr. Beck had contracts, or the teamsters had contracts with many
of the firms with which you had relations, is that not correct ?
Mr. Shefferman. If they had, it had absolutely no bearing because
all of those matters were handled by the company lawyers and I
never even touched them or I never even got near them.
Mr. Kennedy. Did your employees not handle some of those mat-
ters?
Mr. Shefferman. Very few, relatively few; and I think on the
matter of checking back to the matter of actual negotiations and so
forth, I think less than 10 percent of our business
Mr. IvENNEDY. But to Settle labor disputes, didn't your em-
ployees
Mr. Shefferman. Relatively few.
Mr. Kennedy. Did it not happen occasionally ?
Mr. Shefferman. Pardon me.
(The witness consulted with his counsel.)
Mr. Shefferman. I don't really recall that less than, I am sure
that less than 10 percent had anything to do at all with labor disputes.
Mr. Kennedy. Ten percent did, then ?
Mr. Shefferman. Less than 10 percent.
Mr. Kennedy. That would be about 40 of your people for whom
you work.
Mr. Shefferman. With 300 people circulating and coming and
going, it is awfully difficult and I couldn't tell you.
Mr. Kennedy. They could be very key people ?
Mr. Shefferman. Not necessarily.
Mr. Kennedy. They could be very important ?
Mr. Shefferman. It is very small.
Mr. Kennedy. It could be important if you could settle a strike or
labor dispute.
Mr. Shefferman. No, because the key people, whatever they may
have been, have their own lawyers, and I never touched them or got
anywhere near them.
89330— 57— pt. 5, 7
1602 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Kennedt. "VVHiy was it so important for you to maintain
friendly relations with Mr. Beck ?
Mr. Shefi^erman. Because I liked him as a man, and I liked him
as a friend, and I thought he was a very capable gentleman. We
exchanged ideas on speeches, free enterprise, as I told you, anticom-
munism, and I have a lot of material here, and he made it possible
for me to talk to a good many of the unions and organizations, and
so forth. That was the reason. I admired him, and I always admired
him for his capacity, for his ability, and for his courage.
Senator Kennedy. That is the reason that you made him a payment
of these sums of money that you discussed yesterday ?
Mr. Shefferman. That, I think, we covered.
Senator Kennedy. No, we did not cover it. We did not cover the
ethical question of whether it was proper for you, with your respon-
sibilities, to make payments to him.
Mr. Shefferman. Well, that is a matter of interpretation.
Senator Kennedy. Amounting to $24,000.
Mr. Shefferman. That is a matter of of interpretation pretty
much, that I felt — pardon me?
(The witness conferred with his counsel.)
Mr. Shefferman. I didn't particularly feel it was wrong. If I
felt it was wrong I wouldn't have done it.
Senator Kennedy. That is really the question.
Mr. Shefferman. But that is a matter of interpretation, and I
didn't really feel it was wrong.
The Chairman. Can we proceed ?
Can we pursue these items further, IMr. Counsel, and let us try to
get them in the record ? We are going to have to recess in a moment
to answer this quorum call.
Mr. Kennedy. You were reading the items, Mr. Chairman.
Senator McCarthy. I might say. Counsel, I am curious about one
item here purchased for Mr. Beck, diapere. I wondered what Mr.
Beck was doing with diapers.
Mr. Shefferman. I really don't know. As I told you, he was
probably looking after needs of some of his neighbors, for all I know.
"VNHiatever the diapers were for, I really don't know, and I have an
idea that he is thoroughly devoted to a niece, and I think she had a
newly bom babe, or 3 or 4 of them now, if I recall, and I think that he
probably bought the diapers for the niece's babies.
The Chahiman. Let us proceed with the list.
We are down to the 12 pair of binoculars, $354.
Mr. Sheffi:rman. Pardon me.
The Chairman. Twelve pairs of Magna binoculars.
Mr. Shefferman. For $354.
The Chairman. And then we covered the chairs, tables, loveseats^
and so forth, for the rumpus room, and that is $1,242.45.
jVIr. Shefferman. Yes, sir, I think so.
The Chairiman. Go on, and read the rest of them.
Mr. Shefferman. Do you want me to read them ?
The Chairinian. I want you to read them, and give the amounts of
them, and state what you know about them. If there are any on
there that are incorrect, say so.
Mr. Shefferman. I wouldn't know. I wouldn't recollect.
(The witness conferred with his counsel.)
niPROPER ACTIVITIES IN THE LABOR FIELD 1603
Mr. Shefferman. These have been taken from the records, and I
really haven't got the records.
The Chaiioian. They are taken from your records
n.o^'':^^^^^^^'^^' Lamps, tables, chow bench, smoke, and so forth,
Sulka ties and shirts, $192.65.
Two coats, $303.60.
Kic^s from Strauss-Rose Carpet Corp., 1 Cheviot, $571.99; 1 Frie^-
ette— somebody will have to pronounce that for me— $672 07- 1
Renaissance, $991.19. ^pv^i^.vi , x
One pump to be used on sprinkling unit, $242.40
I believe I remember that ; that was for the lawn, and I have a faint
recollection that there was something to pump for the l^wn.
The Chairman. At his home?
Mr. Shefferman. I think so ; yes, sir.
One chestnut divan, $273.
Gravy boat, cruet set, biscuit box, $124.
TV set, $371.95 ; and gardening, $1,918.15.
I think those were the bills that I paid.
Mr. Kennedy, will you refresh my memory ?
The Chairman. What is this gardening, $1,918.15 «
Mr. Shetferman. Will you refresh my memory? I think some
gardening was done, if I recall, and you reminded me of that.
r.fi ^^^^'''^A^r ^'^'^ """^^ ^^- Kennedy may talk this over for a
little while until I return.
The committee will have to stand in recess so that we may answer
a quorum call,. We will be back as soon as we can arrange it
(Brief recess.) *=
(Members present after the taking of the recess: The chairman
and benator Mundt.)
The Chairman. The committee will come to order,
ct! 01 fi iT^'w-n ^^^eff^™^n, we were down to the item of gardening,
$1,918.15. Will you tell us what that is for?
Mr. Shefferman The reason I remember that somewhat, Mr.
Chairman, is that during the discussion with the tax people, they
showed me a check 2 checks or 1 check, that had to do with nArsery
Ti '^^' u,¥/- P/'^' I ^^^"^^. ^^, I ^-ec^ll it, sent the bill to the office
and said, "Would you pay this?" And so we paid it. But we were
reimbursed for the amount.
The Chairman. I understand. Would you recognize this docu-
ment, a photostatic copy of which I hand you-two documents, in
Senator Mundt. Mr. Shefferman, who reimbursed you?
Mr, Shefferman. Pardon me?
Senator Mundt. Wlio reimbursed you ?
Mr. Shefferman. Mr. Beck,
unfon f """^ Mundt. Mr. Beck, in personal cash, or Mr. Beck from the
Mr. Sheitekman. I wouldn't know.
(Documents handed to witness.)
Senator Mundt. Don't your records show that?
wcilSishrXJpaldl!" '■•^'■""•^ """'•» ^'-"•' >-• The records
1604 IMPROPER ACTIVITIES IN THE LABOR FIELD
(The witness conferred with his counsel.)
The Chairman. Would the witness look at the documents?
Mr. Shefferman. Pardon me. Let's get this thing straight. The
record would not show that ? It would not show the source of pay-
ment. I see.
Senator Mundt. Do you personally know at this time how you were
reimbursed, whether by the union or by Mr. Beck personally ?
Mr. Shefferman. I only know what I have been told, that I have
been reimbursed by union checks.
Senator Mundt. Were you told by members of your staff ?
Mr. Shefferman. The staff and others, that I was reimbursed.
Senator Mundt. Were you reimbursed by union checks ?
Mr. Shefferman. Yes. They match up. Moneys that have gone
out and the moneys that have been returned; they match up, and I
am told by my staff that that was paid for by union funds.
Senator Mundt. By union funds. You have an accurate set of
books, I presume, not having had the difficulty that the teamsters have
had, that, because of lack of storage facilities, they have had to destroy
a lot of records. You haven't had that problem, have you ?
Mr. Shefferman. I am sorry to admit that our records are not as
they might be, because they come and go, the purchases. It is per-
sonal and not part of the business at all. I did all of this. May I
qualify something, if you will permit me, Mr. Chairman? I made
the statement that people are under the impression that much of this
material, these purchases, I had bought merely for the teamsters.
I bought them for other miions with whom I had never had any
business whatsoever, not the slightest.
The Chairman. We will get to that in a little while, and we will
have you tell something about it. We will be interested.
Mr". Shefferman. All right. Thank you. Now, what did
The Chairman. Examine the documents before you.
(The witness conferred with his counsel.)
The Chairman. Do you recognize the handwriting?
Mr. Shefferman. It says — pardon me. "Florence." I see. The
girl marked this paid.
Nate, I would appreciate youi" sending check to Yorozo for gardening. Please
advise amount of clieck you pay and Seattle, plus this check.
I think he is asking for a bill for the full amount. It looks like Mr.
Beck's handwriting.
The Chairman. You got a request from him on that order ?
Mr. Shefferman. Yes.
The Chairman. That is a sample of a request ?
Mr. Shefferman. That is about a sample that I would get, or over
the telephone or something.
The Chairman. That may be made exhibit No. 119.
(The document referred to was marked "Exhibit Xo, 119," for ref-
erence, and will be found in tlie appendix on pp. 1687-1688.)
Mr. Kennedy. That is the particular one for $1,918.15.
Mr. Shefferman. Yes.
Mr. Kennedy. You raised some questions about it ?
Mr. Shefferman. Yes. Well, I didn't know. $1,918; that must
be it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1605
The Chairman. The one I have just made an exhibit is for that
amount ?
Mr. Shefferman. Says $1,918.15.
The Chairman. Is that what it says?
Mr. Shefferman. $1,918.
The Chairman. So that is the order of Mr. Beck with respect to
that $1,918.15?
Mr. Shefferman. Yes.
The Chairman. Now I will hand you some four more photostatic
copies, gardening accomits. Would you examine those and see if
you identify them? I believe they came from your files.
(Documents handed to witness.)
Mr. Shefferman. I don't Iniow whether I could identify them. I
^im sure my staff could.
The Chairman. Well, take a glance.
Mr. Shefferman. This is the handwriting of my secretary, and this
says, "Nate, please send check," again Mr. Beck, and I don't even
know whether or not I saw this.
Mr. IvENNEDY. Whose handwriting did you say ?
Mr. Shefferman. It says :
rrom the desk of Dave Beck, please send check on this. D, B.
The Chairman. He would get the bills and send them to you for
payment, obviously ?
Mr. Shefferman. I would hate to think that he sent me all of his
bills for payment.
The Chairman. I see.
Mr. Kennedy. $85,000 worth.
Mr. Shefferman. Over a matter of a few years.
In those instances, he must have bought, as I say, for other people.
(At this point. Senator Kennedy entered the hearing room.)
The Chairman. Can you rationalize why he would get these bills
and send them to you and ask you to pay them instead of having his
own secretary pay them ?
Mr. Shefferman. I cannot rationalize other than that he has many
financial affairs, I understand, real estate deals and whatever they
are, and he might have not had the money at the time. That is the
only thing I can rationalize.
The Chair]vian. I doubt that. I seriously doubt that. I do not
tliink you are sincere in making that statement.
Mr. Shefferman. Pardon me.
I wouldn't know.
The Chairman. I know you would not know, and neither would I.
Mr. Shefferman. I merely say I wouldn't know.
The Chairman. Here is a man sending you bills all along, asking
you to pay them, and now you wake up 3 or 4 years later and find out
that you were reimbursed out of union funds for his personal bills.
That is the score ; is it not ?
Mr. Shefferman. Apparently.
The Chairman. Is there anything otherwise apparent about it,
except that ?
Mr. Shefferman. No ; nothing but that, merely that I have been
told by my staff that that is it.
1606 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. And yon believe that to he true.
Mr. SiiEFFEKMAx. I believe that to be true.
The CiiAiRMAX. Those bills are all similar, are they?
Mr. Shefficrmax. Well, who signed this?
(The witness conferred with his coinisel.)
The CiiAiRMAX. Identify them so that I may make them part of
the record.
Mr. SnEFFER:NrAx. I don't know whose handwriting that is. It says
"paid." The notations on them are "paid,"
The CiiAiRMAx. And they were paid l)y yonr firm ?
Mr. SiiEFFERMAx. Xo. By me.
The Chairman, Paid by yon personally ?
Mr. Siieffer:max. Yes. personally, and reimbursed personally.
The Chairman. They may be made exhibits 120A, B, C, and D.
(The documents referred to were marked "Exhibits 120iV, 120B,
120C, and 120D" for reference, and will be found in the appendix on
pp, 1689-1694,)
The Citaik:man. They were paid by you personally. Have you
been reimbursed for those payments?
Mr. Siieffer:man. Yes. Yes.
The Chairman. B}^ whom?
Mr. Shefferman. By Mr. Beck.
The Chairman. By Mr. Beck or by the teamsters union?
Mr. Shefferman. So far as I know, by ]\Ir. Beck. I have been told
that most of the payments or some of the pa;vments were made with
union funds, and this particular — I don't Iviiow about these particular
bills, how they were paid.
The Chairman. Have you got a single record where Mi-. Beck re-
imbursed you personally and you can show by your record that he re-
imbursed you out of his own funds?
(At this point Senator Ervin entered the hearing room.)
Mr. Shefferman. I wouldn't know. We would haA^e to check tlie
records. The committee has the records.
The Chairman. All right.
Senator Mundt. Mr. Shefferman, did you serve during this jjeriod
of time as the paymaster for any othei" union leaders except Mr. Beck?
Mr. Shefferman. No. I made
Senator Mundt. You Avere not running a small-loan agency on the
side?
Mr. Shefferman. No. I made purchases, but nothing other than
that.
Senator Mundt. There is no other similar instance in your operation
whereby you took the bills, advanced the money, and got it back?
Mr. Shefferman. No. I wouldn't know
Senator Mundt. This is your operation. You would kjiow this.
This is the only incident?
Mr. SiiEFFERivrAN. I think so. This was strictly a friendly gesture.
I hadn't developed a companionship, as I know, with any of the others,
as I had with Mr. Beck. I knew him better.
(The witness conferred with his counsel.)
Mr. Shefferman. I think it was. Senator, you asked me whether
I made any purchases for other union leaders ?
Senator AIundt. No, sir. I asked you if you were serving as a
paymaster for any other union men.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1607
Mr. Shefferman. No. I don't know whether this was a paymaster.
I don't know abont the term.
Senator Mundt. ''Paymaster" is a perfectly polite term. You were
paying the bills and getting the money back. That is a paymaster.
Mr. SiiEFFER^iAX. I got the money back
Senator INIundt. Tliis is the only instance ?
Mr. SnEFFERMAX. I tiiinlv it is the only instance so far as I know.
I don't know of anything else.
Senator INItjndt. To the best of your recollection ?
Mr. SiiEFFERMAK. To the best of my recollection, that is the only
instance.
Senator Mundt. Mr. Beck had a unique relationship in this in-
stance with you ?
Mr, Sheffermax. That is right. I think as T tried to rationalize
before, in all likelihood he might have been a little tight with money.
Senator Muxdt. He might have been a little tight with money, but
he was not short of money. There is a difference there.
]\Ir. Shefferman. 1 don't know. He might have been short, too.
The Chairman. Mr. Sheff'ei-man, the Chair hands you another pho-
tostatic copy of a pretty good-sized item along the same lines. Would
vou examine it? It appears to show that you paid the Prentice
Nursery & Decorating Co. for labor from July 4 to July 22, $549.39,
for plants $1,547.50, plus tax, making a total of $2,059.t7. Will you
examine this bill ?
(Document handed to witness. )
Mr. Shefferman. Mr. Chairman, I think it is probably part of
the same transactions for the house or whatever it might have been,
for the garden.
The Chatr3ian. It may have been for his house, but it is a bill in
fiddition to the others you can identify. It doesn't include those other
items.
(At this point, Senator Ives entered the hearing room.)
The Chairman. There are items in addition to those you have
already identified.
Mr. Shefferman. Yes.
The Chairman. Is that correct ?
Mr. Shefferman. It says, "Harris ; O. K." This identifies it that
it went to my bank.
The Chairman. It went to your bank ?
Mr. Shefferman. To the bank ; yes.
The Chair^ian. That may be made exhibit No. 5.
(The document referred to was marked "Exhibit No. 121" for ref-
erence and Avill l)e found in tlie appendix on p. 1695.)
Senator Mundt. Did you ever visit this garden? Have you ever
been out there ?
Mr. Shefferman. Yes; I liave been out tliere quite a few times.
Senator Mundt. Have you seen the garden that was landscaped
by this material ?
Mr. Shefferman. I have seen the gai'den and the grounds.
The Chairman. Senator Mundt, will you suspend a moment until
I get another document in the record ?
Senator MuNDT. Yes.
1608 IMPROPER ACTIVITIES IN THE LABOR FIELb
The Chairman. The Chair hands you another photostatic copy of
a document. I wish you would identify it and read it into the record,
please, sir, and state what it means.
(Documents handed to witness.)
Mr. Shefferman (reading) :
o^^l^.^^? forward your personal check to Prentice Nursery in the amount of
$4,534 airmail special delivery. Dave.
I vpill forward you check immediately.
Mr. Kennedy. Would you read that a little louder ?
Mr. Shefferman (reading) :
c^^t^A?^?^^^ forward your personal check to Prentice Nursery in amount of
$4,534.94 airmail special delivery. Dave.
I will forward you check immediately.
The Chairman. Do you not know that you received a check in
payment of that from the teamsters? Do not your records show
that 5
^ Mr. Shefferman. I did not. I don't know it. I don't even know
it now unless they tell me that it is part
J2^^ Chairman. What do your accoimtants tell you about it ?
Mr. Shefferman. Pardon ?
The Chairman. Wliat do your accountants tell you about it ?
Mr. Shefferjian. I don't know whether the accountant knows any-
thing about It. *^
Does he ?
Do you know anything about this ?
The Chairman. All right. It was signed "Dave Beck" ;
or "Dave" ?
Mr. Shefferman. This says "Dave."
The Chairman. "Dave" ?
Mr. Shefferman. Yes.
The Chairman. You recognize who it is ?
Mr. Shefferman. Yes ; I recognize it very well.
The Chairman. That may be made exhibit No. 122.
(The document referred to was marked "Exhibit No. 122" for ref-
erence and will be found in the appendix on p. 1696.)
The Chairman. Here is another one I will ask you to identifv and
tell me what It means, $90.92.
(Document handed to witness.)
Mr Shefferman. $90.92. "Tell them" something. "Nate, please
pay this," $90.92. ^
The Chairman. That is from "Dave," too ?
Mr. Shefferman. That is from Dave ; yes.
No ; it says DB. Dave Beck, I imagine.
Mr. Kennedy. Would you read the whole thing ?
Would you read the whole thing into the record, please?
Mr. Shefferman (reading) :
Saks Fifth Avenue, paid June 20, 1952, check 1467, Mr. Dave Beck, 552 Denny
Way, Seattle, Wash. Tell them that their sox I purchased are terrible, full of—
something —
holes.
Well, they were not the holeproof, I guess.
Mr. Kennedy. Would you read it again ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1609
Mr. Shefferman. Wliich do you want me to read?
Mr. Kennedy. Eead what lie wrote there.
Mr. Shefferman (reading) :
Tell them their sox I purchased are terrible. Full of holes.
The Chairman. Obviously, according to that, he made the purchase
himself and then sent you the bill to pay it ?
Mr. Shefferman. Just as in the other matter.
The Chairman. That is what it indicates.
Mr. Shefferman. Yes.
The Chairman. That may be made exhibit No. 123.
(The document referred to was marked "Exhibit No. 123" for ref-
erence and Avill be found in the appendix on p. 1697.)
The Chairman. Senator Mundt?
Senator Mundt. I was discussing the garden. You said you have
seen the garden.
Mr. Shefferman. Yes. I had seen the landscaping, but not the
particular garden. The special reference to the garden or what the
garden is, 1 wouldn't know.
Senator Mundt. You have been in his home and you have seen the
landscape and tlie garden?
Mr. Shefferman. Yes; I have.
Senator Mundt. Inasmuch as our records show that tliis garden
was paid for by union funds, would you tell the committee whether this
was sort of a public teamsters garden, whether the members could
bring their families and have picnics, or was this a private garden?
Ml*. Shefferman. Well, Senator Mundt, oddly enough he has had
a good many gatherings out there of union peox)le. I have been on
occasion to several.
Senator Mundt. That was not my question. I want to know
whether you believe it to be a public garden available to all the team-
sters whose dues paid for it, where they could bring their families on
a Sunday afternoon, have picnics and so forth, or whether this was
primarily a garden in connection with Mr. Beck's home.
Mr. Shefferman. I really wouldn't know the answer.
Senator Mundt. You were there.
Mr. Shefferman. I was there, but I wouldn't know the answer.
Senator Mundt. Was this attached to his home ?
Mr. Shefferman. Pardon me?
Senator Mundt. Was this attached to his home, part of the home
premises ?
Mr. Shefferman. It is part of the landscaping. I don't even know
what the garden is. I know the general landscaping.
Senator Mundt. Part of his home, part of the landscaping of his
home ?
Mr. Shefferman. Part of the home ; yes.
Senator Mundt. Did you see any signs up anyplace saying "Families
of John C. Truck Driver welcome — Public property — Paid for by
teamsters' dues — Keep the premises clean but use as freely as you care
to," or anything of that sort?
Mr. Shefferjvian. I never saw any signs. I think if he wanted to
invite anybody he wouldn't have to put up any signs.
Senator Mundt. I do not doubt but he invited the vice presidents
and the top echelons.
1610 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Sheffekj^ian. Yes.
Senator Kennedy. ^Lv. Chairman, it seems to me that Mr. Sheffer-
man is important for two reasons, first to give substantiatinjj evidence
as to the fact that he received checks for personal purchases from Mr.
Beck that were drawn on the union.
The second y^oint, liowever. I think, is more important, and that is
the question of Mr. Shefferman as an employer-representative in in-
dustrial-relations matters, and his ties with Mr. Beck, both receiving
funds and giving funds to Mr. Beck.
I would like to ask the counsel whether the staff is investigating, or
if it has investigated whether it has turned up any evidence of par-
ticular favoritism to his clients by the teamsters union during indus-
trial relations matters during the last 7 or 8 years. I would like to
ask the counsel whether that is being investigated, because it seems to
me that that would be most important to this investigation.
Mr. Kennedy. Senator Kennedy, we have been iiivestigating that
matter over the period of the past 6 weeks, and I anticipate tliat we will
be on it for another several months. We have been investigating it,
and we have some information and some evidence bearing on the point
you make.
Senator Kennedy. I tliink that will be important to this whole in-
vestigation, if there was such a relationship, to show that there was a
relationship between employer industrial relations matters and the
head of the most powerful union in the United States, and money was
exclianged between them, to the benefit of Mr. Beck and Mr. Shef-
ferman.
Mr. Shefferman. May I say there have never been any special
favors, never asked, never requested. "We never even talked shop, as
I indicated before.
On this matter of my going to the union meetings, I have dealt with
an awful lot of unions with whom I have never had any business.
Wlien I say dealt with them, I visited with them. I knew it was easier
to make ])eople like you than hate you. When we talked about pur-
chases, wholesale or discounts, whatever they were, it was merely a
means of building up public relations, and when they saw me they
weren't tensed or strained.
I used to write letters about labor trends. I made it my business
to try to bring tlie employer and employees together, to work together
harmoniously and, by all means, to avoid as much friction as possible.
That friction was avoidalde only because of my knowledge of what
was going on, where it was going on. Moreover than that, in working
with the rank and file, in working particularly with the supervision,
we built sufficient goodwill, and particularly in those clients to whom
you may be referring. I don't know who the}' are.
And in v/hich case I don't think they needed any special favors
because we had built so much goodwill between the employer and the
employee and the relationship was of a character because we had done
a lot of good work for the employees as well as the employer, in bene-
fitting him.
In so doing. I don't think there was any need to ask any special
favors anywhere from any unions, and I didn't at any time. I think
they would have lost the respect if I had.
My relationship with Mr. Beck, it was an altogther different story.
It was a highly personalized one because of njy :i Imiration for the
IMPROPER ACTIVITIES IX THE LABOR FIELD 1611
man. and beauine he found my presence with him rather rehixing.
on me
I don't think — pard
Senator Ivexxedy. Mr. Shefferman, I do not want to repeat the
facts, but you did make $85,000 worth of purchases for Mr. Beck,
and you gave him during this same period S24,000. I would not sug-
gest tlie relationship was just completely disinterested.
Mr. Sheffer^iax. Well, yesterday it was brought out, I think, that
this matter of the $24,000 was a matter of — I think, Senator Mundt,
you asked the question if it was a business expense. Under those
circumstances, I hadn't done anything with him for 10 years or more,
for 10 years or more, and at which time the system of bookkeeping
that we talked about was put into the teamstei-s union. I was paid
by the same people.
Moreover, I don't think Mr. Beck was even an officer at the time.
He might have been. Mr. Tobin was still alive.
If I remember, too, I was in a pretty high tax bracket, at which
time I felt as if I ought to do something for Mr. Beck.
The Chaiemax. The Chair would like to ask you about 1 or 2 more
items. You keep saving that you purchased $85,000 worth for Mr.
Beck.
Mr. Shefferman. Pardon me?
The Chairjiax. You keep referring to the fact that you purchased
$85,000 worth for Mr. Beck. The fact is that a lot of these items
you did not purchase at all. Mr. Beck purchased them and sent you
the bills and you paid for them.
Mr. Shefferman. That is true. According to the records.
The Chairman. Yes. So to say that you purchased all of them
would be inaccurate.
TYhat you did was pay for all of them.
Mr. SHEFFERiiAN. Yes.
The CHAHiMAx. It seems to be a very strange arrangement where
Mr. Beck sends you his personal bills, to purchase socfe, ties, under-
clothes, various things, and then sends you the bill and tells you to
pay it.
Mr. Shefferman. For which I was reimbursed.
The Chairman. I understand. By union funds. "We have that
pretty clear.
But the point I am making is did it not occur to you that that was
sometliing strange, a novel arrangement for him to go out and buy
his personal clothes and send you the bills and tell you to pay it, anH
he would reimburse you ?
Mr. Shefferman. I never even questioned it for a moment when
he sent me the bill. When he said "Pay it," I paid it. I didn't ques-
tion it for a moment.
The Chairman. Did it ever occur to you that that was a most
peculiar arrangement ?
Mr. Shefferman. I don't know whether it was a peculiar arrange-
ment or not. It wasn't usual.
The Chairman. Well, we will start with miusual, then?
Mr. Sheetermax. Yes.
The Chairmax. And from unusual, about the next step would be
peculiar, would it not ^
Mr. Sheffermax. It might. We are defining terms.
The Chairmax. Well, that is the strangest one, I thhik.
1812 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Shefferman. Nevertheless, it is true, he asked me to pay the
bills.
The Chairman. We are establishing it as a fact very rapidly.
Here are some more I Avould like you to take a glance at. I will not
put any more into the record, but just enough to show the pattern
of this very strange arrangement.
Mr. Shefferman, we have just taken a few at random out of 4 or 5
folders full of similar bills.
(Documents handed to witness.)
The Chairman. Do you identify those you have ?
Mr. Shefferman. Yes.
The Chairman. What did Mr. Beck say in that one ?
(The witness conferred with his counsel.)
Mr. Shefferman. It merely says here :
Ship to Dave Beck, Woodmere Apartments, 3636 16th Street NW., special
coats —
two of them, $135 apiece.
The Chairman. Did you purchase those or did he purchase them?
Mr. Shefferman. I purchased these, I think.
The Chairman. You think you purchased those?
Mr. Shefferman. I think I purchased those.
The Chairman. Look at the next one.
Did you purchase the next one?
That may be made exhibit No. 124.
(The document referred to was marked "Exhibit No. 124" for refer-
ence and will be found in the appendix on p. 1698.)
Mr. Shefferman. No; I don't think I purchased this.
The Chairman. Read the items. You paid it.
Mr. Shefferman. I paid it.
The Chairman. Read the items on that invoice.
Mr. Shefferman. "Please pay" — pardon?
The Chairman. Read the items on it.
Mr. Shefferman. The items?
The Chairman. Yes.
Mr. Shefferman. One cravat $7.50, 3 cravats $8.50, 2 cravats $15,
6 undershirts $9, and a robe $125.
The Chairman. That all appears to be personal wearing apparel ;
does it not ?
Mr. Shefferman. Yes. Apparently. I think it is personal wear-
ing apparel.
The Chairman. Well, it is wearing apparel.
Mr. Shefferman. Yes; it is wearing apparel. I don't know
whether it is his or whether he bought it for somebody else.
The Chairman. I do not know whether he wore it or gave it away
or somebody else wore it. I do not know. But it is personal wearing
apparel ?
Mr. Shefferman. Yes.
The Chairman. Did you purchase those items for him ?
Mr. Shefferman. No.
The Chairman. He purchased them liimself and sent you a bill?
Mr. Shefferman. Yes.
The Chairman. And you paid it?
Mr. Shefferman. That is right.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1613
The Chairman. That may be made exhibit No. 125 to show the pat-
tern of this business transaction and arrangement operating between
you and Mr. Beck.
(The document referred to was marked "Exhibit No. 125" for refer-
ence will be found in the appendix on pp. 1699-1700.)
Mr. Shefferman. Mr. Chairman, I don't know whether it was a
business transaction or merely a favor.
The Chairman. It turned out out to be a pretty big favor, it seems
to me.
Mr. Shefferman. But the $400,000, aside from the $85,000, there
w^as $400,000.
The Chairman. Let me ask yon this: Have you another union
leader or officer who sends you his personal bills for you to pay ?
Mr. Shefferman. I do not have ; no.
The Chairman. Then this was peculiar in your experience with
union officials, was it not ?
Mr. Shefferman. Unusual.
The Chairman. Unusual ?
Mr. Shefferman. Right.
The Chairman. I will settle halfway between. It is unheard of, is
it not?
Mr. Shefferman. It is unheard of.
The Chairman. All right.
Mr. Kennedy. Mr. Chairman, our records show that during this
period of time the bills paid by Mr. Shefferman amoimted to approxi-
mately $94,000, those bills of Mr. Beck that Mr. Shefferman paid.
Out of that $94,000, our records show, and I think that Mr. Sheffer-
man's people concur, that $85,000, approximately, or a little bit over
$85,000, was paid to Mr. Shefferman with union funds.
Do you want to continue on Mr. Dave Beck, Jr. ? You have not cov-
ered those items yet.
The Chairman. I will ask counsel to proceed.
Mr. Kennedy. Mr. Shefferman, would you read the items that were
purchased for Mr. Dave Beck, Jr., or the bills that were paid for Mr.
Dave Beck, Jr., and you were reimbursed by union funds?
Mr. Shefferman. This is page 3 of this one here?
Mr. Kennedy. Yes.
Take that one. It is more complete.
Mr. Shefferman. David Beck, Jr., washing machine, $85.50.
Mr. Kennedy. Speak up a little louder.
Mr. Shefferman. Washing machine, $85.50; 20-foot deep freeze,
$250.90 ; automatic de luxe washer, $142.82 ; 2 aluminum boats, $196.50;
model 70, 30.06 gun, $73.10; vacuum cleaner, $57; chestnut living
room, $979.50 ; 3 mattresses and 3 springs, $222.69 ; 20-inch TV,
$324.40; 1-horsepower GE compressor, $217; one-half horsepower
Currier compressor, $125 ; one-half horsepower GE compressor, less
motor, $106 ; $448, less sales tax.
Eleven axles for compressors, $340.30.
I see.
Submersible sump pump
Mr. Kennedy. Motor, $17.74.
Mr. Shefferman. $17.74 was the motor.
Submersible sump pump, Fairbanks-Morse.
1614 IMPROPER ACTrV'ITIES IN THE LABOR FIELD
Camera equipment, $590.91: 2 lenses, $107.37; tools, and so forth,
$215.54 : tools, and so forth, $13.14 ; tools, and so forth, $22.61 ; washer,
$184.62; thingamajig for camera — whatever that is — $2.31; TV set,
$218.99 : camera case, $32.83 ; $4,592.37.
Mr. Kennedy. Those are the purchases or bills paid for Dave Beck,
Jr.?
Mr. Shefferman. I don't know whether he paid them. I haven't
any idea whether Dave Beck, Jr., paid liimself. I think there were
some bills that he paid himself.
Mr. Kennedy. The records show that these bills were paid out of
union funds.
Mr. Shefferman. They were ? I didn't know that.
Mr. Kennedy. Would you check with your accountant ?
Mr. Shefferman. Do you know whether this — do you ?
You have told us this. We don't know. We haven't even got the
records, as we indicated before. You have the records.
Mr. Kennedy. Your accountant has gone over the records.
Mr. Shefferman. Has he ? I don't know whether he can identify
this specifically.
Mr. Kennedy, we will accept your word for it.
Mr. Kennedy. This is included in the $85,000.
Mr. Shefferman. It is ?
Mr. Kennedy. Yes.
Mr. Shefferman. I didn't know.
Mr. Kennedy. You do not have anybody that can check it ?
Mr. Shefferman. Check it ^ Yes ; it can be checked in the record.
Mr. Kennedy. But you don't have anybody that has any firsthand
knowledge of it ?
Mr. Shefferman, No ; not at the moment.
The Chairman. The Chair will make this mimeographed copy from
which the witness has been testifying
Mr. Shefferman. Pardon me, Mr. Chairman, may I request again,
and I think you agreed with me, that we were going to modify this
statement somewhere. What was it that we said? I don't even
remember.
The Chairman, Well, let us see. You say you want the title of
it modified, "Samples of items purchased for Dave Beck by Nathan
Shefferman."
Mr. Shefferman. And reimbursed.
The Chairman. And reimbursed ?
Mr. Shefferman. Is that all right ?
The Chairman. All right. And for which he was reimbursed with
the teamster union funds.
Mr, Shefferman, I think that is better.
The Chairman. You will agree to that ?
Mr, Shefferman. I think so.
Is that all right?
The Chairman. All right.
Senator Mundt. Mr. Shefferman, I have been reading some or tuese
notations that were quoted.
The Chairman. I'he Chair makes that modification, and we have
the record completely cleared now. You bought all of these things,
or paid the bills, and you were reimbursed by union funds ?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1615
Mr. Shefferman. Yes; so I have been advised.
The Chairman. That may be made exhibit Nos. 126-A and 126-B.
(The documents referred to were marked "Exhibits Nos. 126-A and
126-B'' for reference and will be found in the appendix on pp. 1701-
1704.)
Senator Mundt. In looking over these notations, it is quite obvious
from the manner in which they are written, the notes are rather
brief, saying, Please send the check for this," "Please take care of this,"
and so forth, which quite obviously indicates that prior to the nota-
tions you received from Mr. Beck, you must have had some verbal or
written undei^tanding about it.
Mr. SiiEFFERMAN. Absolutely
Senator Mundt. You would not just get a letter through the mail
saying, "Please take care of this," and nothing more. Originally,
when you started out, there must have been some understanding with
Mr. Beck,
(The witness conferred with his counsel.)
Mr. SiiEFFERMAX. An understanding ? The mere fact that he asked
me, and I knew that he was going to pay it, that is all.
Senator Muxdt. That is right, but prior to the receipt of the bills
through the mails, Saks Fifth Avenue, for example, saying, "Please
take care of this," you must have had some verbal understanding, some
arrangement, l^ecause you should not get that through the mail and
nothing more.
I am simply asking you to recall for us where this thing began,
what your understanding was with Mr. Beck.
Mr. Shefferman. I will indicate to you specifically and unequivo-
cally that there was no understanding and no arrangement. It was
merely at his request, knowing him as I did, and his knowing me and
when he asked me, I paid the bills and knew I was going to be reim-
bursed.
Senator Mundt. Do you recall the first instance where this hap-
pened ?
Mr. SiiEFFERMAN. I couldu't possibly recall.
Senator Mundt. Do you remember the first time?
Mr. SiiEFFERAFAN. No, I couldu't uuless they went over the records
again. I wouldn't have any idea.
Senator Mindt. You must recall, certainly, when this program
fanned out to include the other members of his family. When you
started to work with his son, you must have had some understanding
theri. If he had a pretty good family, you might have wondered
how far this would go.
Mr. SiiEFFER^iAN. I had no more understanding with him than I
had with any other of the people, both in management or labor for
whom I purchased.
Senator Mt^ndt. And was Dave Beck, Jr., also taking you by the
hand and leading you around and introducing you to a lot of impor-
tant union people? You made a rather sentimental pitch there on
Dave Beck that impressed me but I was wondering whether his son
had also interceded for you.
Mr. SiiEFFERMAN. Well, Junior was merely there when his father
was there. Sometimes he wasn't. He wasn't nearly as effective. I
don't know that lie had ever done anything particularly out of the
ordinary.
1616 IMPROPER ACTIVITIES IN THE LABOR FIELD
As I indicated before, there were a lot of union people for whom
purchases have been made of this type aside from the teamsters.
Senator Mundt. We are just interested for the time being in Beck
and Beck.
Mr. Shefferman, I want to indicate there are some others.
Senator Mundt. Wlien you first started out to include Dave Beck,
Jr., in your operations as a paymaster, I was wondering whether or not
you did not have some understanding with him.
Mr. Shefferman. I don't know about the paymaster, but it was an
evolution. It started back when I got to know him first, 22 or 23 years
ago.
Senator Mundt. You are talking about Dave Beck, Jr. ?
Mr. SiiEFFERMAN. Well, Junior was then going to school. I don't
know how it came about to go and visit the family.
Senator Mundt. When did you first get a bill from Dave Beck, Jr.,
saying, "Go and take care of this" ?
Mr. Shefferman. I haven't the slightest idea. I haven't looked at
the records. I haven't seen them. All I am testifying to today are th^
records that have been checked for me by my accountant.
Senator Mundt. I am asking you to check with your own memory.
When was the first time you got involved with Dave Beck, Jr. ?
Mr, Shefferman, I am sorry, I couldn't testify from my own mem-
ory because I wouldn't know.
Senator Mundt, Did Dave Beck, Sr,, sometime say, "Why don't you
do this for my son, too" '?
Mr, Shefferman, I don't know that it started that way, I think if
Dave Beck, Jr., asked for anything, I would get it for him.
Senator Mundt. Did Dave Beck, Jr,, come to you and say, "Look,
you did it for Pop, will you do it for me" ?
Mr, Shefferman, I don't know that that was the process.
Senator Mundt. You explained in some detail, your personal rela-
tionship with Dave Beck, Sr., but this is a different category. This is
Dave Beck, Jr., I am wondering how you started out paying these bills
and being reimbursed, for Dave Beck, Jr,
Mi\ Shefferman, A natural evolution, I don't even know whether
Dave, Jr,, paid his own bills.
Senator Mundt, We know about that. They were paid by the
union fimds,
Mr, Shefferman, Well, I see, I didn't know.
Senator Mundt, I am talking about the relationship now between
Dave Beck, Jr,, and Mr. Shefferman, how you included him,
Mr, Shefferman, Dave Beck, Jr., I presume he wanted some items.
These particular items have a familiar ring, I think he has a lodge or
some sort of a place up in the mountains and I thmk that is what this is
for. It is just a faint recollection.
Senator Mundt, Well, think a little more. What else can you
remember ?
Mr. Shefferman. No ; that is about all I can think about in looking
at this particular statement here.
Senator Mundt. This was the lodge up in the mountains ?
Mr, Shefferman, Yes, That is about all I can think about.
Senator Ives. Mr. Chairman.
The Chahiman, Senator Ives ?
IMPROPER ACTIVITIES IN THE LABOR HELD 1617
Senator Muxdt, I thought there was a boat involved.
Mr. Shefferman. A boat ?
Senator Mundt. Yes.
Mr. Sheffeioian. I don't know. I think that is all part of — I don't
really know.
Senator Mundt. Two aluminum boats. How did he use those up on
the mountain?
Mr. Shefferman. I don't knoAv. He may have a watering place.
He may have a lake, for all I know.
Senator Mundt. Have you been at the lodge ?
Mr. Shefferman. Yes. I was there once in the winter and pretty
deep snow. I didn't see much of it.
Senator Mundt. You do not know whether there was a lake there
or not ?
Mr. Shefferman. I don't know whether there was a lake there or
not.
Senator Ives. Mr. Chairman?
The Chairman. Senator Ives.
Senator Ives. I would like to ask Mr. Shefferman if he does any-
thing with employers aside from carrying on educational work ? You
represent employers, as I understand it.
Mr. Shefferman. Yes, we represent employers. I should say that
probably 5 percent, I think, if we took a count, I think less than 5 per-
cent or 5 percent would be negotiations or any dealings directly with
unions.
Senator Ives. Collective bargaining matters, is that right ?
Mr. Shefferman. Pardon ?
Senator Ives. With collective bargaining matters ?
Mr. Shefferman. That's right. I don't think that would amount
to more than 5 percent.
Senator Ives. Would you mind telling us what the unions are that
you represent aside from the teamsters ?
Mr. Shefferman. Represent ? I don't represent any unions.
Senator Ives. Let us change it around. You represent employers.
With what unions are you negotiating aside from the teamsters (
Mr. Shefferman. Well, the steel workers, if I recall.
Senator Ives. What steelworkers are those ? Is that some local?
Mr. Shefferman. I think it is locals. Not in Chicago, no. We
work all over the country pretty much.
Senator Ives. All right.
Mr. Shefferman. What are the others? Can you recall some of
the others ?
Carpenters.
Senator Ives. Would you mind indicating specifically what these
unions are and give us the local numbers ?
Mr. Shefferman. I couldn't give you the local numbers.
Senator Ives. You do not know ?
Mr. Shefferman. No. The men are on the road and they handle
them. We liave an office in Detroit and one in New York and the men
handle their own affairs. We merely coordinate the activities out of
Chicago.
Senator Ives. Are you not the head of it ?
-57— pt. 5 8
1618 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Shefferman. I am the head of it, but then the man in New York,
with his staff, operates in that vicinity, in that area, and wlierever
they have to go and the man in Detroit operates out of Detroit. All
of the bills and everything clear through the office.
Senator I^^ES. That is true, but do 3'ou not have some records in
that office through which they clear ?
Mr. Sheffermak. Clear ? Sure, we have those records.
Senator Ives. Then, you must have some idea.
Mr. Shefferman. Didn't we turn those records over ?
Those records are also turned over to the committee. They have
all of the clients. They have all of the client's records.
Mr. Kennedy. We have all of the records of his clients.
Mr. Shefferman. Yes, of the clients.
Senator Ives. You say 5 percent of your work is in tlie fields of
collective bargaining; is that correct^
Mr. Sheffer]man. Yes.
Senator Ives. ^^Tiat ?
]Mr. Shefferman. Pardon? The other 95, Senator Ives, is confined
chiefly to the morale building, good will building, through supervisory
training, surveys, job analyses, personnel establishments, reestablish-
ing the personnel.
Senator 1\t.s. How much of all that has to do with the teamstei-s ?
Mr. Shefferjnian. Relatively little, if anything. If anything, very
little, trace back
Senator Ives. It occurs to me that if you have been involved in all
the payment of these purchases at one time or another, you could not
have had too much op]:)ortunities to carry on this other activity,
Mr. Shefferiman. I wasn't around. That is what I indicated. I
was out most of the time and it was handled in the office.
Senator Ives. I am confused about your organization. You seem
to have a spread out organization. It is headquartered where?
Mr. Shefferman. It is headquartered in Chicago.
Senator Ives. You do not seem to have a single spot where you are
sure of what is going on.
Mr. Shefferivean. The only thing we are doing — most of our work
is educational work. We can tell you where we are putting in pro-
gra ms. They have the clients and they can check.
Senator Ives. Have you submitted all of that to this committee
so that we have it?
Mr. Shefferman. They have all the clients, yes.
Senator Ives. I just wanted to know.
Mr. Shefferman. Yes.
Senator Ives. I wish you would find out with what unions you are
dealing with in collective bargaining.
Mr. Shefp^erman. Who are some of them ?
Steel workers.
Senator Ives. AA^iat steelworkers ?
Mr. SHEFFER3rAN. I think it is the CIO — I mean the United Steel-
workers.
Senator Ives. I know they are all practically CIO, but what locals?
Mr. Shefferman. I don't know. The men would have to tell me.
Senator Ives. Wliere are they located ?
Mr. Slater. Senator, we will get that information, if you will give
us a minute.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1619
■Senator Ives. All right.
Are there any others besides steelworkers I
Mr. Sheffi:r]man. Yes. Carpenters.
Senator Ives. Where are they located '\
jVIr. SiiEFFERMAN. Local through upstate New York.
Senator \ve&. Upstate New York.
Mr. Sheffeeman. Yes, I think thfey are.
Senator Im3s. Are you not sure? I live in upstate New York.
Mr. SHEFFER]\rAN. Wait a minute.
Are those upstate New York? Are they upstate New York?
All through New York.
Senator Ives. All through New York.
Mr. SiiEFFi.R^iAN. Up- State New York. T^Hien I said "Up-State
NTew York," I was thinking in terms of Cortland, N. Y.
Senator Ives. Cortland, N. Y. Do you deal with the carpenters
in Cortland, N. Y. ? That is 40 miles from where I live.
Mr. Shefferman. We will have to invite you
Senator I\t.s. What was that ?
Mr. SiiEFFERMAisr. He lives 40 miles from Cortland.
Everybody in Cortland.
Senator I^tss. You deal with everybody in Cortland ?
Mr. Louis Jackson. Yes, Louis Folmer and some of your friends
there.
Senator I\'es. How did you get into Cortland? That is a nice
place, but I cannot for the life of me understand the ramifications
'Of your business.
Cortland is a city of approximately ten or twelve thousand popu-
lation. That is correct, is it not? You must know something about
Cortland.
Mr. Shefferman. I don't know.
Senator Ives. Why would you go out to a place in up-State New
York as small as that ?
Mr. Shefferman. Because the clients send for us.
Senator Iaes. Is that the only place in up-State New York?
Mr. Shefferman. No. There are other places.
Where else do you have them ?
Rochester, Buffalo, Syracuse.
Where else ?
Mr. Jackson. Magra.
Senator L^s. That is about 2,500.
Mr. Shefferman. But the factories and the people are still there
and the employers are there.
Senator Iv-es. I am acquainted with that area.
Mr. Shefferman. May I outline what we do ?
Senator Ives. I wish you would. I am not clear at all.
Mr. Shefferman. We have an organization known as Labor Rela-
tions Associates, for the want of a better term, another name. Our
primary purpose is to bring about understanding and good will
between tlie employer and the employee.
Senator Ives. That is a very laudable purpose. I will tell you that.
Mr. Shefferman. I will tell you what we do.
Senator Ives. All right.
Mr. Shefferman. We operate on a simple philosophy. We have
taken the attitude, if you will bear with me, that through the years
1620 IMPROPER ACTIVITIES IN THE LABOR FIELD
there have been all sorts of mass movements, mass movements have
had for their ingredients, frustration, hate and suspicion and distrust.
We have found that the reason that people don't get together and
work together well is because they don't trust each other or they don't
understand each other.
Now, if you will bear with me for just a moment
Senator Ives. I will give you a lecture on that after a while.
Mr. SHEFTER^fAN. All right. Now, we find that in these recent
years, Mr. Hitler, with his hate for the Jew, Mussolini, with a hate for
everyone, the Jaj^s with their hate for Americanism, or America,
eventuated in a war. Spain with the hate for the church.
Senator Ives. Well, go ahead.
Mr. Sheffeeman. I am getting to this particular point that you
said you wanted to explain.
Senator Ives. I do not see what that has to do with labor relations.
Mr. Shefferman. I am coming to that. It is very important. If
you will bear with me.
Senator I\^s. All right.
Mr. Shefferman. Somehow or other for the last 25 years there
has been developed in this countiy a hate for the term "bosses,"
"profit" and so forth. I recently made a speech at the University
of Kansas. I am not going to tell you the speech
Senator Ives. Please do not.
Mr. Shefferman. I know it. Nobody wants to hear it. I heard it
myself. Please bear with me, if you will.
I told the people there — they talked about training — I said, "Ladies
and gentlemen, for whom are you training? You are training for
the employer. Since you are training for the employer, how are
you going to train for him if you don't like him or don't trust him or
there is misunderstanding ? Therefore, what we want to do is build
trust."
It is not only that they don't trust the employer, but they don't
trust what he represents, our way of life. So we go out and bring
about this good will.
Senator I\t:s. You have had your say. Now, I will get in. Did
you ever hear of the New York School of Industrial Relations at
Cornell?
Mr. Shefferman. Yes.
Senator Ives. I was dean of that at one time.
Mr. Shefferman. So I underetand.
Senator I^^ES. I tliink I know something about the field you are
operating in, but I never heard of anyone that operated in the way you
have been doing.
Mr. Shefferman. We are going about it — we go into a plant and
train their supervision to build good will.
Senator I\^s. I gathered that.
Mr. Shefferman. We go into the plant and work with the pei^on-
nel department. We go into a plant and do job analysis. We go into
a plant and do surveys for the purposes of building morale. That
is about all that we do.
Senator I\'es. You have told me that. Now, I am going to ask you
to do one thing before you get out of here today. I want you to leave
a list with this committee of these companies, these employers whom
IMPROPER ACTIVITIES IN THE LABOR FIELD 1621
jou represent in this particular field, these surveys and these other
thino:s that you have been doing.
You say a lot of them are in up-State New York. I know most of
them in up- State New York.
Mr. Shefferman. They have a list.
Senator Ives. All right.
Mr. Shefferman. If you want any special reference to your people,
we will give you that.
Senator Ives. I certainly do. I want to know everything about
you.
Mr. Shefferman. Wlio is this ?
Louis Folmer.
Senator Ives. I know Louis Folmer.
Mr. Shefferman. He will tell you about our work.
Senator Ives. He is a good friend of mine.
Mr. Shefferman. He will tell you a great deal about our work.
Senator Ives, All right.
The Chairman. Proceed, Mr. Counsel.
Mr. Kennedy. Mr. Chairman, we have these other bills. Could we
have them made exhibits for reference so that we can refer to them ?
The Cpiairman. Has someone of the staff checked them ?
Mr. Kennedy. Yes. Mr. Bellino.
The Chairman. All right, they may be made exhibit 11, in bulk,
for the record, for reference.
(The document referred to was marked "Exhibit No, 127" for ref-
erence and may be found in the files of the select committee.)
The Chairman. Let us proceed.
Senator Mundt. Mr. Shefferman, while the counsel is preparing to
go into a new line of questioning, I would like to read to you a short
paragi'aph of the statement which Mr. Beck made in the Face the
Nation television broadcast on Sunday, March 17, and ask if you can
throw any light on it because we were unable to get any more in-
formation from Mr. Beck.
He was asked by Mr. Cater :
Mr. Shefferman, for example, that you loaned some money to, I believe, in
1955, is he in any kind of business arrangement with you? Do you get any
interest or payment from any of Mr. Shefferman's business activities?
Mr. Beck. No ; I certainly do not. The only time that I can remember of
being in any business with Mr. Shefferman was about 1954, and when there was
$19,000 paid by me, and I endorsed a ^check back over to the International
Brotherhood of Teamsters, so they got a profit of $19,000 from it. That's the
only time I have ever been in business with Mr. Shefferman, to the best of my
knowledge, that I can recall.
He apparently had forgotten your housing. That must be some-
thing else. And the $24,000.
Mr. Shefferman. I think Mr. Kennedy was about to raise a ques-
tion on that.
Weren't you, Mr, Kennedy ?
Senator Mundt. Mr. Kennedy would not know about this.
Mr. Shefferman. I don't know what he is referring to, particularly.
Senator Mtjndt. I will read it again.
This is Mr. Beck talking. He says :
The only time I can remember of being in any business with Mr. Shefferman
was about 1954 —
1622 IMPROPER ACTIVITIES IN THE LABOR FIELD
he must have overlooked the house deal and the $24,000 —
and when there was $19,000 paid by me —
Beck—
and I endorsed a check back over to the Internatioual Brotherhood of Teamsters,
so they got a profit of $19,000 from it. That's the only time I have ever been in
business with Mr. Shefferman, to the best of my knowledge that I can recall.
IVhat is this $19,000?
Mr. Shefferman. I am reminded by counsel or he tells me that he
thinks it has reference to the matter of some trucks. Some few years
a<io, somebody got the bright idea as an experiment to send out 1,000
trucks to the locals, I think it was, and see whether they would want
to purchase them for the purposes of advertising the label, the union
label, I think. I don't know whether I got into that transaction —
I don't know whether I got into the transaction at all. I had a half-
interest in it, I learned later.
Senator Mundt. You would not forget a $19,000 item, would yout
Mr. SriEFFERMAx. No. I am coming to that.
Senator Mundt. Toy trucks ?
Mr. Shefferman. Toy trucks, yes. And the purpose was public
relations, as I understand it. Mr. Leheny had an idea that he would
like to take these trucks and put the union sticker or label on them
and sell them to the locals.
Senator Mundt. Who is Mr,
Mr. Shefferman. Mr. Leheny was then at the head of the label
trades for the AFL. He was promoting industrial shows and the label
trades.
Senator Mundt. Was he a teamster official?
Mr. Shefferman. I don't think he was. He was a secretary of
the
Senator Mundt. I think we have had his name in this hearing
before.
Mr. Shefferman. He was one time public relations. I think one
time lie was a public-relations director for the teamsters in the south-
ern California area, if I recall.
Mr. Kennedy. Senator Mundt, Mr. Ray Leheny is a kej' figure in
this investigation. Mr. Ray T^heny is the one who operated this
public relations special account in Los Angeles, through which a gre^t
deal of this money, at least $29,000 from teamster funds in Seattle,,
came down to Los Angeles, were taken out of there and sent to Mr.
Shefferman. Mr. Ray Leheny is the one who administered those-
funds. So if there is evidence to show that Mr. Dave Beck set this up
as a fictitious organization, this public-relations account in Los
Angeles, Mr. Ray Leheny had to be part of that conspiracy.
Mr. Shefferman. Mr. Leheny is since deceased.
Senator Mundt, Tell us who Mr. Leheny was.
Mr. Shefferman. Mr. Leheny for years, as I remember, was a pub-
lic-relations man for the teamsters in California, and then, later, or
maybe he was running the job concurrently, then later he was the
secretary of the label trades, the label trades of the AFL. That is
for the entire AFL, where he would put up these shows. I think it
was his idea to experiment with 1,000 trucks which were sold to these-
locals. AVliat were the particulars? Do you have any of them?.
Would you like the particulars?
IMPROPER ACTIVITIES IN THE LABOR FIELD 1623
Senator Mi'Ndt. Yes. $19,000 is involved here.
Mr. Sheffekmax. I am coniino: to the $19,000.
Mr. Slater. If the connnittee will permit me, I will have to tell him
this, because this is taken from our records and he is not familiar
with them as such.
Mr. Shefferman. "Will you permit that?
The Chairman. The Cliair will "j^rant you tlie riglit to refresli your
memory on that transaction.
Mr. Shefferman. All right.
T^nion Mercliandise Co. initially tried this experiment of selling
1,000 trucks to the locals.
( The witness conferred with his counsel. )
Senator Mundt. Were you a partner?
Mr. Shefferman. Yes. I was 50 percent. My son and I, we each
had 50 percent of it.
(The witness conferred with his counsel.)
Mr. Shefferman. When it was proved successful, Mr. Leheny said
that they ought to promote it and he will take it over into his depart-
ment, which Mas a }:)ublie-relations deiiartment. Xo; label-trades de-
partment. I beg your pardon.
(The witness conferred with his counsel.)
Mr. Shefferman. Then the com})any was formed — when was that
formed ?
(The witness conferred with his counsel.)
Mr. Shefferman, After the experiment — I wonder if that is true-
after the experiment was shown to be successful, a company was f oi-med
under the name of the Shelton Co., which is my son's first name, and I
was a 50-percent
Senator Mundt. Wlio owned the stock in that company ?
Mr. Shefferman. My son and I.
Senator Mundt. The entire stock ?
Mr. Shefpt:rman. The entire stock. All right.
(The witness conferred with his counsel.)
Mr. Shefferman. After that, the actual sales were made by the
label -trades department.
(The witness conferred with his counsel.
Mr. Shefferman. And a total profit of some $40,000 was made out
of these trucks.
(The witness conferred with his counsel.)
Mr. Shefferman. $20,000 was sent to us, to the Shelton Co.
(The witness conferred with his counsel)
Mr. Shj^fferman. The finances and the books on the transaction
were handled by the union-label trades, and I understand that this
$19,000 about which you are talking — I don't Iniow whether it is so —
was money that, I think, I heard since that Mr. Beck had gotten from
the union-label trades — no; JVIr. Beck — and turned it over to the inter-
national union. That is what I understand.
Senator Mundt. Why would Mr. Beck? He was not the partner,
was he ? "
Mr. SHEFFER:\tAN. Xo. He had nothing to do with it. Nobody was
paid out of this at all, out of the Shelton Co. The division of the
profits was between the label trades and Shelton, and Shelton Co.
Senator Mundt. So you got $20,000 ?
1624 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Shefferm AN". My son and I got $20,000, and I think the other
$20,000 went to Mr. Beck, who, I understand later, or somewhere it
was stated, turned it over to his international union.
Senator Mundt, He implied that in his statement in the Face the
Nation broadcast.
Mr. Shefferman. Well, I have been told.
Senator Mundt. We have no way of verifying; that, because, when
we asked Mr. Beck whether what he said was accurate and whether he
would repeat it under oath, he took the fifth amendment.
Mr. Shefferman. I don't know anything about that. Unless the
international might tell you. I don't know.
Senator Mundt. Just one question. These trucks were sent to the
teamsters' locals?
Mr. Shefferman. Sent to the teamsters' locals through the label
trades, to the teamsters' locals, and the people bought them. Those
are the people, the secretaries and the presidents of various locals.
Senator Kennedy. In other words, through the teamsters' locals
you made a profit to the corporation of Mr. Dave Beck of $20,000, and
you and your son.
Mr. Shefferman. No ; this is Mr. Leheny.
Senator Kennedy. Mr. Leheny is in charge of the special account in
Los Angeles.
Mr. Shefferman. I don't know nothing about Mr. Leheny. He had
absolutely nothing to do with any special account that I know of. He
was the head of the label trades for the AFL, and the truck was his
idea.
Senator Kennedy. Let me put my interpretation on this. Mr.
Leheny, through whom Mr. Beck forwarded this money to you, union
money, for the payment of his personal bills, and you, with the co-
operation of Mr. Leheny, had over 1,000 of these trucks which were
taken by teamster locals, and you and your son made a profit of $20,-
000 out of the deal. Is that an incorrect statement ?
Mr. Shefferman. Well, it is pretty substantial.
Senator Kennedy. In what way is it not correct ?
Mr. Shefferman. It is only this, that Mr. Leheny, when you are
speaking about checks coming from Mr. Leheny, I think if you go into
the record somewhere, Mr. Leheny bought a lot of things himself. I
mean a lot of merchandise.
Senator Kennedy. I am talking about the trucks now.
Mr. Shefferman. The trucks were strictly a union-label deal. It
was Mr. Leheny's idea, and Mr. Beck didn't have anything to do with
it at the time.
Senator Kennedy. Mr. Chairman, it seems to me this is another of
the many examples of the financial transactions which benefited both
Mr. Shefferman and Mr. Beck through this period.
Other transactions benefited Mr. Beck, but this benefited you, at a
time wlien you were paying his personal bills, and at a time when you
were paying him, and at a time when he was paying you. It seems
to me that it brings into question again the fact that you were a repre-
sentative of employers during this period when you and Mr. Beck
were engaged in these bvisiness deals.
Mr. Kennedy. I think, also, there are some other facts that we will
develop in this matter that are very, very important.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1625
Senator Ivennedy. Under the Taft-Hartley, the National Labor
Relations Act of 1947, section 302 (a) , it says — •
It shall be unlawful for any employer —
which includes his representative or agent —
to pay or deliver, or agree to pay or deliver, any money or other thing of value
to any representative of any of his employees Wiho are employed in industry
affecting commerce.
It seems to me that this transaction and many of your other transac-
tions directly are in breach of section 302 (a) of the National Labor
Relations Act of 1947.
Mr. SHEFFERivtAN. Well, I don't think so, because we have asked
(Witness conferred with his counsel.)
Senator I^nnedy. Certainly the spirit if not the language of the
act.
Mr. Sheffeeman. I don't think so, I am sorry to say. I don't
really think so.
Mr. Kennedy. Would you go back ? You made this deal originally
with Mr. Ray Leheny ?
Mr. Shefferman. As a matter of fact, I don't know whether I made
it. I think it was my son.
Mr. Kennedy. Your son, Shelton Shefferman ?
Mr. Shefferman. I think Leheny came to Mr. Shelton Shefferman
and talked about it.
Mr. Kennedy. At that time, Mr. Ray Leheny was a teamster offi-
cial in Los Angeles ?
Mr. Shefferman. No. I think at that time Mr. Ray Leheny was
the head of the Union Label Trades League.
Mr. Kennedy. What is that, an AFI^CIO ?
Mr. Shefferman. Now it is AFL-CIO, but it was a branch of the
AFL setup where they handled all of the labels for all of the AFL.
Mr. Kennedy. So he was a union official for the AFL ?
Mr. Shefferman. I don't know whether he was a union official. He
was a secretary of this particular setup of the union label trades.
Mr. Kennedy. He was working for the AFL?
Mr. Shefferman. For the Union Label Trades.
Mr. Kennedy. Which was an AFL organization ?
Mr. Shefferman. Yes ; that is correct.
Mr. Kennedy. Our records show that in addition to that he was also
a teamster official.
Mr. Shefferman. That I don't know. At that time ?
Mr. Kennedy. Yes.
Mr. Shefferman. I didn't know that.
Mr. Kennedy. Your son and Mr. Ray Leheny arranged for the sale
of these small trucks ; is that right ?
Mr. Shefferman. Well, yes, we arranged.
Mr. Kennedy. Then how did you go about the distribution of the
small trucks to all the teamster locals throughout the country ?
INIr. Shefferman. I think it was handled through Leheny, the
Label Trades League.
Mr. Kennedy. Was a letter sent out to them first saying "Do you
want the small trucks" ?
Mr. Shefferman. I wouldn't know that at all. I didn't get that
close to it.
1626 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kexnedy. Isn't it a fact that the small trucks were sent to every
local in the country and that they had to take them?
Mr. Shefferman. Oh, I wouldn't know that.
Mr. Kennedy. Mr. Shefferman, you are saying you don't know
anything.
Mr. Shefferman. I know, but, Mr. Kennedy, I wouldn't know —
I would never say to somebody, "You have to take it."
Mr. Kennedy. The trucks were sent out to every teamster local in
the country ; were they not ?
Mr. Shefferman. I think so. I didn't handle the deal myself.
Mr. Kennedy. Were they sent to every local ?
Mr. Shefferman. I don't know that either.
Mr. Kennedy. Weren't arrangements made with the vice presidents
of the teamsters that they would handle these trucks and send them
out to the various locals ?
Mr. Shefferman. I don't know that, either. I think Mr. Leheny
handled that.
Mr. Kennedy. Wiat did Mr. Leheny tell you about what he was
doing with the trucks ?
Mr. Shefferman. He didn't discuss it with me at all.
Mr. Kennedy. Why did you happen to pick the teamsters unions i
Mr. Shefferman. Because it happened to be a truck, and, not only
that, Mr. Leheny was interested in placing the label — this is very
important. Each of these trucks had what they called a union service
label on them and that was the purpose of getting them out, so they
would think in terms of putting union labels or union stickers on
trucks generally.
Mr. Kennedy. Let me ask you this : Was INIr. Norman Gessert in-
terested in this transaction ?
Mr. Shefferman. Was he interested in this transaction? I don't
know.
Mr. Kennedy. He did not have any interests ?
Mr. Shefferman. I don't know.
(Witness conferred with his counsel.)
Mr. Shefferman. Well, I might say this, that, as I am advised here,
he was an employee of Union Merchandising, and to the extent that
Union Merchandising handled it, he might have benefited. But I
don't know.
Mr. Kennedy. He received for that year, 1953, $6,000 from TTnion
Merchandising ?
Mr. Shefferman. That was his salary, wasn't it ?
Mr. Kennedy. Well, after you sold these trucks to the various team-
ster unions, can vou explain to the committee how Mr. Dave Beck,
Sr., ended up with $19,800?
Mr. Shefferman. That I do not even know. I have been told that
the Label Trades, they handled all of the funds.
Mr. Kennedy. But, ISIr. Shefferman, you cannot plead ignorance in
everything now.
Mr. Shefferman. I didn't handle them. I didn't hear of them.
Mr. Kennedy. But you were talking to Mr. Dave Beck. You know
what his interest was.
Mr. Shefferman. I didn't talk to Mr. Dave Beck about the trucks
very much. I knew there was a truck deal on, and I knew they were
promoting the trucks, but I really didn't know what they were doing
IMPROPER ACTIVITIES IN THE LABOR FIELD 1627
-with the trucks. I knew they were shipping them out a] id I knew
they were being sold, but this was Mr. Leheny's people.
Mr. Kennedy, Mr. Sheft'erman, don't you know that a letter was
sent out by Mr. Dave Beck to all the unions telling them that they
should take these toy trucks ?
Mr. Shefferman. Well, I am sorry to say you may accuse me of
never knowing anything, but I did not know that Mr. Dave Beck
had sent out a letter. I had never seen such a letter.
Mr. Kennedy. You never heard about it ?
Mr. Shefferman. I don't even recall hearing about it.
Mr. Kennedy. Tell me this: How did you think it was going to
be possible for Mr. Ray Leheny, who you said you didn't know had
any teamster official connection
Mr. Shefferman. Pardon me.
Mr. Kennedy (continuing). Teamster connection, how did you
expect he was going to be able to distribute all of these trucks to the
teamster locals?
Mr. SHEFFERivrAN. Mr. Leheny had been tlie public-relations man
for the teamsters in California, and Mr. Leheny was all over the
country. He knew all of the unions, knew all of the trucks people.
He was everywhere, all over the place. Particularly, he went gunning
for this — what do you call it — the Label Trades, the Union Label
Trades. Mr. Leheny and my boy handled that together,
Mr, Kennedy. It never occurred to you that there was anything
that was questionable about a transaction with a union official or an
employee of a union in a deal such as this, where you were going to try
to sell the trucks?
Mr. Shefferman. They were promoting the truck for the purposes
of-
Mr. Kennedy. Profit for Mr. Nate Shefferman.
Mr. Shefferman. Well, profit for Mr. Nate Shefferman. That was
incidental. It was incidental to the entire proposition.
Mr. KJENNEDY. $20,000 isn't incidental.
Mr. Shefferman. Well, it was divided between my son and I with
a big tax problem on it, so I don't know how much was left.
Mr, Kennedy, How was it possible that Mr. Dave Beck, Sr., who
had no interest in this transaction, ended up with $20,000 ?
Mr. Shefferivian. I don't know that, I don't know what deal he
had.
Mr. Kennedy, I am quoting him. He says this on television, that —
$19,000 was paid to me, and I endorsed a check back to the International Brother-
hood of Teamsters, so they got a profit of $19,000 from it.
How did it happen to be that the $19,000 was paid to him originally ?
Mr. Shefferman. Mr, Kennedy, please, if you will check, and
check back very carefully, Mr. Leheny handled the entire financial
transaction. He paid us, and what he did with the rest, I don't know.
I am assuming that the $19,000 that Senator Mundt asked about went
to Mr. Beck, which I understand he said, or somebody said, he had
paid to the international union. I don't know.
Mr. Kennedy. ^Vliy was he getting any money out of it at all ?
Mr. Shefferman. I don't know that. I don't know that. We had
nothmg to do with that other than helping Mr, Leheny do the work.
1628 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Ervin. Mr. Shefferman, I understand you to say that you
and your son were tlie sole owners of this Shelton Co. ?
Mr. Shefferman. Of the Shelton Co. ; yes.
Senator Ervin. I understood you to say further that you made a
total profit of $40,000 in connection with this trucking matter ?
(Witness conferred with his counsel.)
Mr. Shefferman. I beg your pardon. The $40,000 was earned on
the entire deal, of which we got 20.
Senator Ervin. I understood you to say that there was $40,000
which was returned on a deal carried on by a company, of which you
and your son were the sole owners.
Mr. Shefferman. We didn't handle the finances at all. It was
handled by Mr. Leheny who distributed the funds and paid us
$20,000, and what he did with the other
Senator Ervin. And somebody in the union confiscated the other
$20,000 of the earnings on this deal ?
Mr. Shefferman. Pardon me, I don't know. I don't know what
Mr. Leheny did. We are assuming, when Senator Mundt asked me
about the $19,000 that Mr. Beck was telling about, and he can tell you
better than I, I am assuming that Mr. Leheny might have giA^en him
the other $20,000.
Senator Ervin. Mr. Shejfferman
Mr. Shefferman. But we didn't get it.
Senator Er\t[n. There is something in the Scriptures that says do
not let your right hand know what your left hand is doing. But your
right hand does not know what your right hand is doing, even.
Mr. Shefferman. Senator, that makes for a good bit of levity, but
I am very sorry that you have to say that.
Senator Ervin. Do you know anything about the business affaii-s of
Shelton Co., of which you were a half owner ?
Mr. Shefferman. Yes, sir. I just say to you what I know about
them, and it has just been recalled to my attention. There was a
transaction that was handled entirely by Mr. Leheny with his union
label trades. My son helped him put out these trucks, these trucks
which were designed for the specific purpose of putting on a unio^
label, as I understand it, for which in return there was a $44,000
profit made, we understand — $40,000 — for which in return for our
efforts or my son's efforts or my efforts, whatever I had, little to do,
we got $20,000.
Senator, please, whatever he did with the other $19,000 or the
$20,000, 1 haven't the slightest idea.
Senator Ervin. And although it was the earnings of a corporation
in which you and your son were
Mr. Shefferman. No, please. Will you please get that straight?
These were not the earnings of the Shelton Co. These were the earn-
ings of the union label trades. The earnings of the Shelton Co. was
$20,000.
Senator Ervin. The label union trades was engaged as an agent for
the Shelton Co. ?
Mr. Shefferman. No. Absolutely not. Absolutely not.
Senator Ervin. Mr. Shefferman, will you please tell me what you
as one of the joint owners of the Shelton Co. did in connection with
this matter of these trucks ?
Mr. Shefferman. Oh.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1629
(Witness conferred with his counsel.)
Mr. Shefferman. Well, the Shelton Co., you mean for earning the
$20,000 ?
Senator Ervin. Yes. What did you do in connection with this ?
Mr. Shefferman. What did I do?
Senator Ervin. Yes.
Mr. Shefferman. Well, we found the company who made them.
We arranged for the production and got some of the raw materials
gathered so that they could make them, get them out on time. We
arranged for the coloration. We arranged for their handling and
insurance and whatever may have been involved. Pardon?
Shipping and so forth was all directed for Mr. Leheny, principally
by my son and whatever other help we furnished. But we found the
truck. I say when we found it, we found the manufacturer, we
found the material, we found, as I say, the treatment of the colors.
We found the labels. We found everything, and Mr. Leheny paid
Shelton Co., it was his transaction, exclusively his, and he paid Shel-
ton Co. $20,000 for that work.
Senator Ervin. And Mr. Leheny at that time was working as a
public-relations man for the teamsters?
Mr, Shefferman. I don't know. I am just told that. He was
ihen working as the secretary of the union label trades for the
A.F.ofL.
Senator Ervin. That is what I am trying to bring out. He was
working for some organization of the teamsters union, was he not?
Mr. Shefferman. May I qualify that ? This is very important.
Senator Ervin. You can qualify it if you answer it. You can't
qualify my question. You can qualify your answer.
Mr. Shefferman. No ; I believe I can answer that.
Mr. Leheny, after all, was promoting. His primary job was pro-
moting the union label, to see that they had label weeks, labels went
into clothes, labels went into otlier wearing apparel, and what not.
T think Mr. Leheny conceived this idea of putting the label a union
truck, and it was perfectly within the confines, the natural confines,
of his particular job, and if anything I think he must have been
encouraged by everyone who was interested in the union label to
promote this. It was his idea. We helped.
Senator ER^^N. He developed the idea and then he let you get the
benefit of it to the extent of $20,000 ?
Mr. Shefferman. No. We did the work. We did a lot of work.
Senator Erven. Now, going back to the $24,000 that you gave
Mr. Beck, you say you gave it to him because you were in a high
income bracket?
Mr. Shefferman. Well, not particularly because of that alone, but
because he performed a good many services. I indicated those serv-
ices. It was very important to me to get to know a lot of people. He
took me around to the conventions, introduced me. Made it possible —
and he also recommended, if you please, it wasn't an offer, he also
recommended, I think, the installation of that visible-file system, the
bookkeeping system.
Senator Ervin. Anyway, you testified yesterday that this $24,000
was a voluntary gift from you ?
Mr. Shefferman. I didn't say it was a gift. I said it was a
business expense.
1630 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator ER\^N. First you said it was a gift.
Mr. Sheiterman. Well, of course, term — I am not familiar with;
that. I never termed it a gift.
Senator Er%tn. So whatever it was, you did not pay any income tax.
on it, did you ?
Mr. S iiEFFER^EAX. No ; I did not pay any income tax.
May I qualify that, too ?
Senator Ervin. Yes.
Mr. SHEiTERrMAX. My accountants said that was a business expense^,
if I understand, and it was treated as such because it was given in-
return for services and for help and so forth.
Senator ER^^x. In otlier words, you paid Mr. Beck because Mr.
Beck was employed by you to render services, is that what you mean?:
Mr. Shefferman. No ; he wasn't employed by me at all. I didn't
employ him.
Senator Ervtx. Then you
Mr, Shefferman. Pardon ?
Senator Ervin. He was not employed by you ?
Mr. Shefferman. No ; he wasn't employed by me at all.
Senator ER\ax. Did you give it to him as a gift or did you give it to.
him as compensation for services ?
Mr. Sheffermax. I gave it to him as compensation for services,.,
compensation for services, definitely and specifically.
Senator Er\t:n. Did he tell you whether or not he included it in the
amount of his income tax for those years ?
Mr, Shefferman. I wouldn't know that. I wouldn't know.
Senator Ervin. You are certain now it was not a gift?
Mr, Siieffp:rman, It wasn't a gift; no.
Senator Ervin. Consequently, it constituted income of Mr, Beck
on which he should have returned the taxation, the Federal income^
taxation, for those years ?
Mr. Shefferman. Some $25,000; yes.
Senator ER\^N, That is all.
The Chairman. Counsel, you may proceed,
Mr. Kennedy. I want to fuiish this transaction.
Is this company or this operation still going at the present time ?
Mr. Shefferiman. The Shelton Co, ? I don't know.
Is it still ?
I think it was set up for this, wasn't it ?
Is it still in existence ?
I think the corporation is still in existence but inactive.
Mr. Kennedy, Did you have a successor to the Shelton Co, ?
Mr, Shefferman. Yes, there was a successor.
Mr. Kennedy. What Avas tlie name of that company ?
Mr. Shefferman. I think it was Flobar, Flobar Sales.
Mr, Kennedy, Wlio was in Flobar Sales?
Mr, Shefferman. Myself and my son,
Mr, Kennedy. Who else?
Mr. Shefferman. I don't think there was anybody else in it.
Was there ?
There was a share of profits made. The company was ours. I
think I i-ememher the details, if you will liear with me, some of the-
details, if 3'^ou will bear witli me for a moment.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1631
Mr. Kennedy. 1 think you do leniember a lot of these things.
Mr. Shefterman. No, Mr. Kennedy. You have been to my office.
Listen, I came here on my own volition. You will remember, we
asked for a subpena. I am tryinii; to be as cooperative as I can. I
came on 1 day's notice when I should have j^one to tlie hospital.
"Will 3'ou please bear with me ?
Mr. Kennedy. I wilL
Mr. SiiEEFERMAN. You have l)eeu in my office. You liave talked
to me, and I have talked to 3^ou.
Mr. Kennedy. Yes.
Mr. SiiETrERMAN. Well, all ri^ht. Smile for a clianoje.
Mr. Kennedy, let me tell you the story as best I can.
The Chairman. I^t us have a little better order.
Mr. SiiEFEEKMAN. Let me tell you the story as best I know it.
AMieji Mr. Leheny was sick, he was pretty sick, with a 2?>0 and 240
blood jjre.ssure, and nobody knew whether he was ^joing to live. He
wanted to divest himself of the trucks. I think my boy and young'
Dave
Mr. Kennedy. TMio is young Dave ?
Mr. Shefterman. Young Dave Beck. I think they got together
and thought it would be a good idea to try it for another year.
Was that the circumstance ?
To try it for another year. Thev went out and they sold some more
tiiicks out of which Mr. Dave Reck, Jr., got 50 percent of the profits.
Mr. Kennedy. So we go back. This is the Flobar Co. ?
Mr. Shefferman. Flobar Sales.
Mr. Kennedy, It is owned by
Mr. Shefferman. By Sheltoii and I.
Mr. Kennedy. And 50 percent of the profits went to Dave Beek,
Jr.?
Mr. Sifefferman. And the other 50 was divided l>etween my •
Mr. Kennedy. And the sales of the trucks was to the teamst^re
locals t
Mr. Shefferman. Again, yes. There was no other place to sell
them.
Mr. Kennedy. How much did you make from that ?
Mr. Shefferman. How much clid we make from that ?
$3«,000.
Mr. Kennedy. $38,000 ?
Mr. Shefferman. Of which Mr. Dave Beck, Jr., received one-half.
Mr. Kennedy. He received $19,000 ?
Mr. Shefferman. $19,000.
I don't know. Were there any — we absorbed the expenses, he tells
me, or whatever it may have been.
Mr. Kennedy. Did you discuss that with Mr. Dave Beck, Sr. ?
Mr. Shefferman. No. We never discussed it with Mr. Dave Beck,
Sr. I think the two boys got together and decided it.
(The witness conferred with his counsel.)
Mr. Shefferman. Mr. Kennedy, this information that we are
giving you this morning is in response to a request that was made
from your office yesterday and we got it as best we could to have it
here this morning for you, and laid it right on the line.
1632 IMPROPER ACTIVITIES IN THE LABOR FIELD
Please bear with me. These questions are a little disturbing when
you speak of intent. Well, I don't want to get into a discussion of
that sort. Let's go on.
Mr. Kennedy. That is the end of that discussion.
Mr. Shefferman, That is Flobar.
Was there another ?
(The witness conferred with his counsel.)
The Chairman. Go ahead.
Mr. Kennedy. We have some other questions of Mr. Shefferman
and cannot finish this morning, Mr. Chairman.
The Chairman. Are there any questions by any member of the
committee at this point, before we recess ?
If not, the committee will stand in recess until 2 o'clock.
The witness will return at that time.
(Members present at the taking of the recess: The chairman. Sena-
tors Ives, Kennedy, Ervin, and Mundt.)
(Whereupon, at 12:20 p. m., the conunittee recessed, to reconvene
at 2 p. m., the same day.)
afternoon session
(The hearing was resumed at 2 p. m., Senator John L. McClellan,
chairman, presiding.)
The Chairman. The committee will come to order.
(Present at the convening of the session were Senators McClellan,
Ives, Mundt, and Goldwater.)
Mr. Kennedy. Mr. Nathan Shefferman.
TESTIMONY OF NATHAN W. SHEPFEEMAN, ACCOMPANIED BY HIS
COUNSEL, HOWARD E. SLATEE— Eesumed
Mr. Kennedy. Mr. Chairman, we have some other checks that I
would like to have Mr. Shefferman identify and tell us what the
purpose of the checks was.
The Chairman. Mr. Shefferman, the Chair presents to you what
appears to be 16 photostatic copies of checks issued by you.
Fourteen of them are payable to Dave Beck in various amomits.
Two of them are made payable to the Olympic Hotel and endorsed
by Mr. Beck.
The Chair asks you to examine each of these 16 checks and see if
you identify them as photostatic copies and then we will interrogate
you with respect to a proper explanation of them.
(The documents were handed to the witness.)
Mr. Shefferman. These are all my checks and I think we saw them
yesterday.
The Chairman. You recognize the 16 checks?
Mr. Shefferman. Yes, sir, I recognize the signature.
The Chairman. Take tlie first one you see and give the date and the
amount and who it is to and tell us what it is for.
Mr. Shefferman. I think it is January 7, 1949, for $100 made out
to Dave Beck and signed by me.
The Chairman. Can you tell us what it is ?
Mr. Shefferman. I think these smaller amounts, I am quite certain
this was cash. We would meet at these conventions and other places
IMPROPER ACTIVITIES IN THE LABOR FIELD 1633
and he would cash checks for me because I didn't carry very much
cash and Mr. Beck always carried a little cash.
I am quite certain that that is what it is. Do you want the next
one?
The Chairman. Yes, proceed.
Mr. Shefferman. The next check is December 23, 1949, for $127.40,
and I really don't know what that is.
The Chairman. Who is it payable to ?
Mr. Shefferman. Payable to Mr. Dave Beck and sioned by me.
The Chairman. All right.
Mr. Shefferman. Now, that might have been in return for a rail-
road ticket or some such thing. I wouldn't really state positivelv
because I just don't know positively what it is.
The Chairman. All right. Go to the next one.
Mr. Shefferman. Now, the next check is the Olympic Hotel,
October 27, 1950. It might have been that getting out to Seattle I
probably gave them my check and I think that could be checked
^vith the record of the hotel and he probably endorsed my check.
That is the only accountability that I have for that one.
The Chairman. You got him to endorse your check ?
Mr. Shefferman. Yes. Someone said this Avas endorsed bv Mr
Beck.
The Chairman. Is it ?
Mr. Shefferman. Oh, no ; then it isn't what I thought. Somebodv
said that check was endorsed.
The Chairman. On the front of the check, please.
Mr. Shefferman. On the front it savs, "Mr. Beck"* and it mav
have been that I was a guest of Mr. Beck's because you can't always
get a room at the Olympic unless you know Mr. Beck.
The Chairman. I see.
Mr. Shefferman. That is a fact.
The Chairman. That is not at issue, 20 ahead.
Mr. Shefferman. October 28, 1950, a check to Dave Beck for ^^200
signed by me and I am quite certain and I can't think of anything else!
but just another matter of cashing a check for me when I was without
cash. I don't carry much cash.
The Chairman. You do not carry much cash.
Mr. Shefferman. No ; it is seldom and I spend it fast, but I am
quite certain, gentlemen, or Your Honor, or Senator, that this is that
You are sitting in the seat of honor, afen't you ?
The Chairman. I hope it is an honorable seat.
Mr. Shefferman. It is, yes, sir.
Mr. Kennedy. Could you not get a check cashed at a hotel ?
Mr. Shefferman. Oh, it was so much simpler to say, "Dave," when
we were sitting m a restaurant or somewhere, "cash a'clieck." I have
done that so often, it is just as a matter of course. I would have no
occasion for giving him these amounts otherwise. I am sure, and I
think people that have been around us have heard me asking from time
to time, Dave, cash a check," and he always carries money with him
and instead of going to the hotel with identifications and whatever it
may have been, and it may have been that I stayed at one hotel and
ne was at another and we found it convenient.
89330— 57— pt. 5 9
1634 IMPROPER ACTIVITIES IN THE LABOR FIELD
Please believe me when I say this was. I honestly believe it is and
I can't think of anything else.
Mr. Kennedy. What do you do when yon are not with Dave Beck
about getting it cashed ?
Mr. Shefferman. I get other people to cash my checks.
Mr. Kennedy. We do not find a record from your checks, Mr.
Shefferman, showing that amount of checks or this number of checks
to any one individual and then, they endorsed it and turned it into cash.
We don't find any record like that.
Mr. Shefferman. I think under these circumstances, if we checked
the dates, the possibilities are that it might go back. The chances are
if we checked on the dates, there might have been some occasion,
somewhere, some convention or some meeting or some such place, and
they stretch over a period of 4 years and I don't think that there are
more than 2 a year. There may be 3 a year.
Mr. Kennedy. Mr. Sheffei-man, it might refresh your recollection
that the only people that we find that you have cliecks to such as this,
is Mr. Dave Beck and Mr. Ray Leheny.
Mr. Shefferman. ]Mr. Ray Leheny probably- cashed me some checks.
Mr. Kennedy. What did you used to do when you didn't have of-
ficials of the teamsters union around to cash checks for you ? Did they
always carry a lot of cash with them ?
Mr. Shefferman, They carried a whole lot more cash than I ■
Mr. Kennedy. Than anybody else ?
Mr, Shefferman. Well, there are so many people and I don't carry
much. The gentleman reminds me how many times he has actually
cashed checks for me, one of my associates,
Mr. Kennedy. What is that ?
Mr. Shefferjian. That they have checks, that he has cashed foi- me
from time to time and probably with as great frequency as Mr. Beck,
and probably more so. Because I seldom cany very much money.
Mr. Kennedy. Could you not go into a hotel where you were stay-
ing, Mr. Shefferman, and get a check cashed ?
Mr. Shefferman. Yes ; but after you get out of the hotel you find
the need for money for railroads.
Mr. Slatp^r. Do you wish him to continue with these checks ?
The Chairman. I think we can shorten it. You want to make the
statement under oath to the best of your knowledge and belief that
all of those checks
Mr. Shefferman. Xot all.
The Chairman. Let us get the exceptions.
Mr. Slater. Would you begin the question? I think he can't state
under oath that these checks were purely for the purposes of cashing
them.
The Chairman. I asked him if he wanted to state that all of those
checks to the best of his knowledge and belief were for cash as he
has testified regarding two of them.
Mr. Slater. There are three exceptions, I believe.
The Chairman. Let us get all of them except three and let us get
to the exceptions.
Mr. Shefferman. $427.40. I don't remember that one.
The Chairman. All right.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1635
Mr. SiiEFFKRMAX. The next is $750 on September 17, 1952, made
out to Mr. Dave Beck and signed by me. I cannot recall what that
was for but I will take an oath for the rest of them.
The CiiAiRMAx. With those two exceptions, you say the others
were just for cash, incidental cash that you needed.
Mr. SnEFFERMAN. Incidental cash, that is the best I remember.
The Cii^UR3iAN. You happened to have him cash the checks for you ?
Mr. Sheffermax. Yes, sir, as others have done.
The CiiAiRMAX. Are there any further questions?
Those checks will be made exhibits 128- A, B, and C, and so on to
whatever the amount of the alphabet is required to identify them.
(The documents referred to were marked "Exhibits Nos. 128-A
through 128-P" for reference and will be found in the appendix on
pp. 1705-1720.)
Mr. Kexxedy. Mr. Shefferman, did it ever arise that he needed
cash or money and that you would give him a check so that he could
cash the check?
Mr. Shefferman. I have never known Mr. Beck being without
casli.
Mr. Kexxedy. He always seemed to have a lot of cash ?
Mr. Sheffermax. He seemed to have his cash, so far as I know.
The CiiAiRMAx. I thought you said this morning that he appar-
ently didn't have enough to pay his personal bills for socks and under-
wear and so forth, and he had to send them to you to get them paid.
Did you not make some statement that you assumed he did not have the
money to pay it ?
Mr. Sheffermax. I didn't say he didn't. I assumed he didn't
have the money, and I thought he might have found it much more
convenient.
The Ciiairmax. Just to send you the bill?
Mr. Sheffermax. Yes, sir.
The CiiAiKMAx. Is that what you want to testify to? He did not
have money to pay his bills ?
Mr. Sheffermax. I don't know whether he has enough money to
pay his bills, and he asked me to pay his bills.
The CnAiR:\rAx. He always had enough money to cash big checks
wlien you were around.
Mr. Sheffermax. When you say he didn't have enough money to
pay his bills
The C'hairmax. I was using what .you said this morning. You gavp
that inference.
]Mr. Sheffermax. Well, I wouldn't want to give the inference •
(The witness consulted with his counsel.)
Mr. Sheffermax. I am not quite that familiar witJi his affairs.
The Chairmax. I thought so. All right; we will proceed.
Mr. Kexxei>y. I want to ask you about Mr. Norman Gessert. How
did you happen to bring Mr. Norman Gessert into your operations?
(The witness consulted with his counsel.)
Mr. Shi:ffer3Iax. What operations?
Mr. Kenxedy. Your Union Merchandising Co.
(AVitness consulted with his counsel.)
]Mr. Kexxedy. You don't know who Mr. Gessert is ?
1636 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Shefpermax. I know who Mr. Gessert is. He is Mrs. Beck's
cousin.
Mr. Kennedy. Mrs. Beck's cousin ?
Mr. Sheeferman. Yes, sir.
Mr. Kennedy. And he was an employee of yours ?
Mr. Shefferman. He was an employee of the Union Merchandising
Co.
Mr. Kennedy. And at the same time he was a teamster union
official?
Mr. Shefferman. That, I didn't know, and I believe I indicated
that yesterday. I didn't know he was a member of the teamsters
union.
Mr. Kennedy. The record shows he was also a teamster official.
Mr. Shefferman. You said that yesterday, and I don't know that.
Mr. Kennedy. How did you happen to employ Mr. Gessert, or
become associated with him ?
Mr. Shefferman. Mr. Gessert became associated with the Union
Merchandising, as I recall it, because of his contracts with the union,
particularly the teamsters.
Mr. Kennedy. You employed him because of his contacts with the
union ?
Mr. Shefferman. With the union. He was a salesman and selling
merchandise that we couldn't otherwise have bought — pardon me
(Witness consulted with his counsel.)
Mr. Kennedy. What did the Union Merchandising Co. do, that
these contacts were needed?
Mr. Shefferman. Sold the bookkeeping equipment, if I recall, and
I don't know whether they got into the furniture business, or did they ?
Would you know. Mr. Kennedy ? You have all of the records, there,
and I don't remember. Do you recall ?
Mr. Kennedy. They were selling things to unions ?
Mr. Shefferman. Pardon me ?
(Witness consulted with his counsel.)
Mr. Shefferman. I think the only sale was probably made to the
teamsters.
Mr. Kennedy. So he was employed because of his contacts with the
teamsters ?
Mr. Shefferman. He was employed because of his contact with
the unions generally, and there may have been, and I will have to check
the records, there may have been another union. There may have
been another union that might have bought some of this equipment.
It couldn't have been very much. We will have to check that for you.
Senator Goldwater. Mr. Shefferman, in relation to the question Ihat
has just been asked you, did 3^ou have a relationship similar to the
one you had with Mr. Beck with other people in the union movement ?
Mr. Shefferman. With any others in the union movement?
Senator Goldwater. Yes; such as Mr. ]Matt Woll.
Mr. Shefferman. Matt Woll? I bought stuff" wholesale for Mr.
Matt Woll from time to time, considerable stuff ; yes, sir.
Senator Goldwater. How about Mr. Schnitzler?
Mr. Shefferman. Schnitzler ? Yes ; he has asked me to buy some
merchandise for him from time to time, which I did purchase, as I did
for a good many other people, 350 other people.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1637
Senator Goldwater. How about Mr. Winter, of the bakers' union?
Mr. Shefferman. Yes ; for Mr. Winter.
Senator Goldwater. Now, was this merchandise of the same type
of merchandise that you bought for Mr. Beck ?
Mr. Shefferman. Pretty much ; yes, sir.
Senator Goldwater. Shirts and ties and carpets ?
Mr. Shefferman. There might have been ; I don't recall. I think
some of this merchandise might have been farm equipment and tractors
and in some instances lawn mowers, and automatic lawn mowers, and
for Mr. Woll there were some things bought for his farm. As to
whether there was any apparel, I don't recall. It is in the record, if
you please.
Senator Goldwater. How about Mr. George Meany ?
Mr. Shefferman. I do not recall buying anything for Mr. George
Meany. I would have to go through the early files and check that,
and there may not be anything there for Mr. George Meany.
Senator Goldwater. IVlight I ask Mr. Shefferman if he would look
through his early files ?
Mr. Kennedy. From all of the records we have looked through so
far, Senator Goldwater, we do not find the name of Mr. George Meany.
Senator Goldwater. How about Mr. Walter Keuther?
Mr. Shefferman. I think that there are a couple of transactions,
somebody said. Didn't you tell me that in the record there are a
couple of transactions for Mr. Reuther, done out of the Detroit office ?
Senator Goldwater. Would you recall the nature of those trans-
actions ?
Mr. Shefferman. I think of one. No ; I can't. The only reason I
can associate one for the other, Senator Goldwater, is the time that
someone shot at Reujther through the window, and the story went
around that his life had been saved by a refrigerator, a left-hand-door
refrigerator, that he got from our office ; yes. If it hadn't been for
that, he wouldn't be here today, they said.
Senator Goldwater. Would you answer me : Were these purchases
made for these various officials of other unions than the teamsters paid
for with imion checks ?
Mr. Shefferman. I wouldn't know that, and I never saw the checks.
Senator Goldwater. Is there any way you would have of finding
out?
Mr. Shefferman. Yes; we can go to the records. The records
would not show that, I guess. The only thing we could do was ask
them, and I am quite sure, and I don't think so, and I don't know.
Senator Goldwater. Would you have any way of knowing from
your memory how much Mr. Reuther bought through you ?
Mr. Shefferman. I couldn't give you that. I think the records
would show that, and they have the records, Senator ?
Senator Goldwater. Does the counsel have any information ?
Mr. Kennedy. To the best of our knowledge there were one or two
transactions with Mr. Reuther, Senator Goldwater, and I believe the
record shows, or thei'e is nothing in the record to indicate that the
merchandise was paid for by anyone other than Mr. Walter Reuther
himself. There is no information that we have that the merchandise
was paid out of union funds, as was done with Mr. Dave Beck.
Senator Goldwater. Does counsel have any idea of the amounts
involved ?
1638 IMPROPER ACTIVITIES IN THE LABOR FIELD
;Mr. Kennedy. It was under $500.
Senator Goldwater. The total ?
Mr. Kennedy. Yes.
Senator JilcCARTHY. T nii^ht sa}^ Mr. Chairman, while we are S])esiik-
um of Mr. Eeuther, that I do hope the Chair will call an executive
session in the next few days. I know how busy he is, and how difficult
it is, but I would like to present some facts in regard to Mr. Eeuther.
I fear he is enjoyino; a privileg;ed sanctuary and building himself up
at the expense of the other labor leaders. I have no sympathy for
Dave Beck or any of the others who have appeared here, but I think
that Eeuther is escaping with a clean bill of health yyhen I believe
that his activities would make some of the other things we have
developed here smell like an altar of roses. I hope the Chair will have
an executive session fairly soon so that I can present some of the facts
which I have on Eeuther.
The Chairman. As early as it is convenient for the members of the
committee following the conclusion of these hearings, there will be
an executive session of the committee to take up such matters at that
time as the committee should undertake to resolve and determine.
If Senator McCarthy offers something in that meeting with respect
to Mr. Eeuther or anyone else, over which this committee has jurisdic-
tion, the committee will at that time evaluate it and the committee will
determine what course of action in its wisdom it should pursue.
I would suggest this to the witness, that these names have been
brought in this record now, some five or six, and I do not recall, but I
think it devolves upon the witness and upon the committee insofar as
it can do so. in view of the relationship you have had with Mr. Beck —
from all indications of which at this hour as far as this record is con-
cerned, he was taking money from his union. I do not know any word
that would describe it less than "theft," unless his union knew about
it and replaced it.
In view of that, and the implications of the testimony against Mi\
Beck, and the names of these others having been brought into it under
somewhat similar circumstances, although the amounts may be less,
I think that this committee and the witness with his cooperation should
undertake to either clear their names of having become involved in
similar transactions as those of Mr. Beck, or find out the facts. If
they are involved as was Mr. Beck, if they were engaged in such
practices, this committee should pursue it and expose it.
Senator Goldwater. Might I ask this in addition to your cjuestion:
I believe that the witness in answer to one of my questions used the
niunber of "two or three hundred people" in tlie unions you had made
similar purchases for.
Mr. Shefferman. I said two or three hundred people in various
walks of life. That is friends of friends and others aside from union
people.
Senator Goldwatj:r. I misunderstood the witness.
Mr. Shefferman. Aside from union people, and may I again say
that the records of all repayments to me are in the hands of the
committee.
The Chairman. Then the Chair will instruct the staff of the com-
mittee to make a diligent search of these records and evaluate them
and make a report back to the committee with re3])ect to what these
records show regarding the names of those additional ones who have
IMPROPER ACTIVITIES IN THE LABOR FIELD 1639
been siio:gested here today. It is important, I think, for the com-
mittee to keep the names of people clear if they are innocent, and if
there is nothing to indicate wrongdoing this record should be clear
on that point. If they are guilty, and if there is something to indicate
they are guilty of wrongdoing, it is the duty of the committee to
pursue it.
I do not want to just leave these names hanging liere of Mr. lleuther,
and Mr. Woll, and other, and just leave them hanging here with an
implication against them.
Mr. Shefferman. Senator, and Mr. Chairman, I did not bring up
these names.
The Chairmax. I did not say you brought them up.
Mr. Shefferman. The names must have been taken from the rec-
ords which are in the possession of the committee. I didn't have the
record in front of me. How or why, I don't know.
The Chairman. We will have your full cooperation ?
]Mr. Shefferjvian. You will have my full cooperation.
The Chairman. We will undertake to clear it up as we go along.
Proceed.
Senator Mundt. Since we have brought in some names of people
who have not up to now been before us or connected with the inves-
tigation, I would like to ask you about a man who has been before us.
Did you make these kinds of purchases for Mr. Frank Brewster?
Mr. Shefferman. Are they in the record? I think there were a
very few, relatively few, weren't there ?
Mr. Kennedy. There were some purchases for Frank Brewster.
Mr. Shefferman. I see.
Senator Mundt. Of a sunilar type. Counsel ?
Mr. Kennedy. That is correct. Not vei-y many of them. Senator.
Senator Mundt. Do we know from the record whether they were
paid for by Mr. Brewster out of his personal fund, or out of western
conference funds ?
Mr. Kennedy. We do not know. We understand that the pro-
cedure that was followed was that the purchases woukl be made
through Mr. Dave Beck, and these people who received this mer-
chandise would then pay Mr. Dave Beck, who then would repay Mr.
Shefferman.
Now, this information came to us in an interview with Mr, Frank
Brewster in Seattle, but it was not given under oath before the
committee.
The Chairman. Can we proceed with the matter ?
Senator McCarthy. Could I ask about how many purchases did
you make for Mr. Brewster ?
Mr. SiiEFFERMiVN. SeuatoT McCarthy, I think that there couldn't
have been very many. I think the committe can tell you better than
I, because they have all of the records.
Senator McCarthy. But the committee does not know where the
money came from, you see.
Mr. Shefferman. Well, I really wouldn't know either.
Senator McCarthy. You would not know where the money came
from ?
Mr. Shefferman. No; not the money, because I didn't see the
checks.
1640 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator McCarthy. Now, 3'ou would know where the money came
from it you bought something for Bre wester; would you not?
Mr, Shefferman. Senator McCarthy, I have already under oath
testified here, and I have testified before the tax people that I seldom,
if ever, saw any of the checks. I was away 95 percent of the time,
and the money came into the office, and it was taken by the secretary
and handled. It was put into the bank, and I really wouldn't know.
Senator McCarthy. You knew money was going to Dave Beck,
and money was going to Frank Brewster, either in the form of cash
or gifts, and you knew that ; did you not ?
(The witness conferred with this counsel.)
Mr. Shefferman. I don't quite get the question.
Senator McCarthy. Would the reporter read the question, please ?
(The reporter read from his notes as requested.)
Mr. Shefferman. From whom was this money ?
Senator McCarthy. Through you.
Mr. Shefferman. No.
Senator McCarthy. You never knew that any money was going
from you to Dave Beck ?
Mr. Shefferman. I don't understand the question.
Senator McCarthy. Let me try to make it as simple as I can. Did
you know that money was going from you to Dave Beck ?
Mr. Shefferman. From me to Dave Beck?
Senator McCarthy. Yes.
Mr. Shefferman. No.
Senator McCarthy. I thought you testified yesterday that you gave
him $24,000.
Mr. Shefferman. Oh, you mean that. That was no gift. That was
a business transaction, or, rather, we decided that we — it was a busi-
ness transaction.
Senator McCarthy. I do not understand your bad memory. Now,
you were giving out thousands of dollars and you cannot tell us where
the money came from ; is that right ?
Mr. Shefferman. No, the money came out of my bank account.
When I paid him at that time. I thought we had talked about this
several times.
Senator McCarthy. We have, but I still do not follow you.
Mr. Shefferman. There was a transaction, you will recall.
(The witness conferred with his counsel.)
Mr. Shefferman. I earned $61,000 in setting up a bookkeeping
system and a filing system for the International Bank, I think, in 1948,
and I gave him for services, friendship, and so forth, I gave him
$2,400.
Was it $2,400?
No ; it was $24,000.
Senator McCarthy. You could not have set that up without the
help of Dave Beck ?
]Mr. Shefferman. Well, it certainly helped.
Senator McCarthy. It helped ?
Mr. Shefferman. I think it helped. Although he didn't or he
wasn't particularly responsible for transactions, because at that time
he was not the head of the union.
Senator McCarthy. And you were paying him for that help ?
Mr. Shefferman. For that, yes, if you want to say that.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1641
Senator McCarthy. Now, wliat were you paying Brewster for?
Mr. Shefferman. I never paid Brewster anything, ever, at any
time.
Senator McCarthy. You said that you had bought things for him.
Mr. Shefferman. He purchased things, and paid for them, and it
must be in the record.
Senator McCarthy. He purchased them through you ?
Mr. Shefferman. I jjuess he did, and he purchased them from me,
and he might have, as tne others did, send in some requisition and/or
request for certain merchandise, which we got for him and he paid for
it.
Senator McCarthy. And you were not in the business of selling
merchandise yourself ?
Mr. Shefferman. Oh, no. I didn't make a penny on this mer-
chandise. This was all accommodations, as a good many others do. It
was strictly accommodation.
Senator McCarthy. So you purchased things for Brewster ?
Mr. Shefferman. Very little, I am told, or I did, I purchased it
and they have the records.
Senator McCarthy. Can you tell us why he did not order those
items directly, instead of through you ?
Mr. Shefferman. I don't know. I wonder why 400 other people
didn't.
Senator McCarthy. You wonder why ?
Mr. Shefferman. There were a lot of other people, and friends, and
friends' friends that came to me for certain things that I could get at
discount for them.
Senator McCarthy. Did you have some special arrangement with
merchandising firms ?
Mr. vShefferman. Some here and there ; yes, sir.
Senator McCarthy. Were those firms doing business with the team-
sters ?
Mr. Shefferman. No, sir.
Senator McCarthy. They were not ?
Mr. Shefferman. Not that I know of. They may have been, but
I wouldn't have known. It was the people far beyond the teamsters
alone, and we weren't only getting material and stuff for the teamsters.
We were getting it for a lot of other people that were not even in the
unions.
Senator McCarthy. How about the purchases for Reuther?
Mr. Shefferman. Reuther, I think, that was really done through
our Detroit office, and I don't think that since — I don't know the de-
tails. We can get the details if you want them.
Senator McCarthy. I would like the details. Do you know whether
you were repaid?
Mr. Shefferman. Yes ; we were repaid.
Senator McCarthy. You were repaid in full ?
Mr. Shefferman. Yes, in full.
Senator McCarthy. And what kind of a deduction did you get ?
Mr. Shefferman. I wouldn't know that either.
Senator McCarthy. You would not know what you purchased ?
Mr. Shefferman. No ; I wouldn't know.
Senator McCarthy. You would not have any idea ?
Mr. Shefferman. I haven't the slightest idea.
1642 IMPROPER ACTIVITIES IN THE LABOR FIELD
(The witness conferred with his counsel.)
Mr. Shefferman. If the records reveal it, I have all of the dis-
counts and everything that was given to him.
Senator McCarthy. I have been listening to your testimony for
some time, and I still do not know just what you were doing. Just
what was your job anyway?
Mr. Shefferman. In business, you mean the work, the business ?
Senator McCarthy. Yes.
Mr. Shefferman. Oh, we were doing the job of employer-employee
relations, doing surveys, and job analysis, supervisory training,
setting up personnel departments, and so forth.
There is a statement here, and by the way may I read this, Mr.
Chairman ?
The Chairman. What is the statement ?
Mr. Shefferman. Maybe this will answer the question, and may
I read it?
The Chairman, ^^latisit?
Mr. Shefferman. It is a statement that we were going to release
>pith your permission :
Statement of Nathan Shefferman Before the Senate Select Committee on Im-
proper Activities in the Labor or Management Field — March 27, 1957.
Early in my career in the labor relations held. I realized that many disputes
between labor and management were due to fear and misunderstanding. Need-
less hardship occurred among the rank and tile employees because of this.
With the passage of the various labor relations laws, labor and management
were thrown into new and unexplored areas. In addition, following the depres-
sion years, Communists attempted to dominate certain segments of labor.
Labor, on one hand, had to be convinced that the free competitive enterprise
system was necessary to the preservation of our democratic form of government.
Management, on the other hand, had to be convinced that the representatives of
labor were reasonable men and did not seek to de.stroy or dominate business
activity. The people who needed to understand the philosophy of the free mar-
ket economy were the union leaders. To do this, I have crusaded and preached
the gospel of our economic system to scores of union conventions and meetings.
I will be happy to provide copies of those speeches for the record.
The job of my organization was to analyze for management their causes of
industrial relations disharmony and to bring about a better understanding by
management on how they can improve their relations with their work force.
While being called in to advise management, it is important for me to under-
stand labor's thinking and know the men who are the leaders of labor. I
have devoted my energies to the education of labor and to explaining the ad-
vantages of our present economic system and to make management realize that
men who labor are to be treated with resr)ect and dignity.
In conducting these activities, I often found the opportunity to do favors for
my many friends in labor and management. This included the purchase of
various items at discount prices. I am sure every businessman does the same
for his friends ; it is nothing to be ashamed of.
The Chairman. Mr. Shefl'erman, this statement the Chair indulged
you to read is just a repetition of what you testified to in substance,
as to what your business was, and w^liy you got into the business, and
so forth.
Mr. Shefferman. That is right, and I was also asking permission
for the release of this to the newspapers.
The Chairman. You don't have to ask my permission to release any
statement you want to make to the press.
Senator McCarthy. What dealings did you have with the Reuther
empire ?
Mr. Shefferman. None personally ; absolutely none.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1643
Senator MrCAR-jiiY. When you say "none,'' a minute ago you said
you bought things for Walter Keuther.
Mr. Sheffer:\[ax. I tried to (jualify tliat these items were bouglit
tlirough our Deti-oit office.
Senator MrC^vRTiiY. J)id j-ou liave anythuig to do with the Kohler
strike at Koliler, Wis. '.
Mr. SiiEFKEKJiAX. Xo, but I can tell you this, that in 1934 wdien I
was with the National Labor Board, I handled the Kohler situation
at that time, and conducted the election, and certified their union at
the time, whatever it was. Tliat is the only relationship I have ever
had with the Kohlei- Co., and that goes back sometime in Julv of
1934.
Senator McCarthy. Did you have anything to do with getting
certain cities to pass ordinances preventing the purchase of Kohler
material I
Mr. SiiEFFERMAx. Absolutely uot.
Senator McCarthy. You had nothing to do with that ?
Mr. Shefferman. Absolutely nothing to do with any of that, and
never got anywhere near it.
Senator McCarthy. Did you ever work for the Kohler Co. ?
Mr. Sheffermax. I never worked for the Kohler Co., but in 1934,
I handled their strike situation and I conducted the election.
The Chairman. All right. The Chair is advised that there are
quite a numbei- of names in the files that have been found, of peo-
ple connected with unions and in official positions with unions for
whom Mr. Sheffei-man made purchases.
Mr. Shei'T^'ermax. Yes, sir.
The Chairmax. Tlie Chair will ask the statf to prepare a list of
those names, with the amounts indicated, and submit it to the commit-
tee for exaniination, and at the proper time it will possibly be in-
serted in this record. We do not want to cast any reflections or im-
plications against anyone who is on it. But if there is any other
strange relation going on such as this one — ^what did we decide to
call it this morning ?
Mr. Sheffermax. "Unusual."
The Chairmax. No, that is your decision.
Mr. Sheffermax. Oh, "peculiar", I beg your pardon.
The Chairmax^. If we find any of it, we are going to pursue it.
Mr. Sheffermax. That is right.
The Chairmax. Because we are- not singling out Mr. Beck in this
inquiry.
Senator Muxdt. I think, Mr. Chairman, in fairness, and I am sure
you will agree with this, that your instructions were not quite em-
bracive enough. If Mr. Shefferman has said that he made these pur-
chases for his friends in labor and management, I think that w^e should
give the managerial purchasers the same treatment by our staff as
the labor people.
The Chairmax. He represents management, but if there be no ob-
jection we will get the entire list to bring before the committee in execu-
tive session for its perusal and evaluation and determination as to what
use should be made of it.
]Mr. Sheffermax". Any list that we have is yours for the asking.
Senator McCarthy. Mr. Chairman, as a sort of point of personal
1644 IMPROPER ACTIVITIES US' THE LABOR FIELD
Co., this has nothing whatsoever to do with the former Governor, Wal-
ter Kohler. It is an entirely different Kohler Co.
The Chairman. All right, let us proceed.
Mr. Kennedy. You were telling the committee about your relation-
ship or the relationship with Norman Gessert, the counsin of Dave
Beck's wife. How did you happen to retain Norman Gessert, or who
suggested him to you?
(The witness consulted with his comisel.)
Mr. Kennedy. Do you have to consult with someone to find out who
■suggested Mr. Gessert to you?
Mr. Shefferman. They may have some information that I don't
liave.
Mr. Kennedy. What is your recollection?
Mr. Shefferman. My recollection is that I met Mr. Gessert.
Mr. Kennedy. Through whom?
Mr. Shefferman. Through ]Mr. Beck. I didn't Imow at the time
that they were related. Later on, when we got in some of these activi-
ties with the union, he had contacts with the unions and I think a rela-
tionship was worked out with him, between him and some of the com-
panies which were represented in which he had an interest and that
was the limit of our working.
He knew the people and the people knew him, and he was strictly
a contact man or salesman if you choose to call it that, although he
didn't travel much.
Mr. Kennedy. How could he be a contact man for ^ou and at the
same time be working for the union, or be associated with the union?
Mr. Shefferman. I didn't know about his work in the union and I
think we ought to ask Mr. Gessert that question.
Mr. I^NNEDY. You never Iniew that ?
Mr. Shefferman. I never knew him.
Mr. Kennedy. You just knew of his relationship with Dave Beck?
Mr. Shefferman. I knew he was with the retail clerks at one time,
yes, that is some years back, but I didn't know he was with the
teamsters.
Mr. Kennedy. Now, you have talked about a number of your busi-
ness transactions and were there any other business transactions that
Mr. Gessert was interested in which involved business dealings with
the teamsters?
Mr. Shefferman. Business with the teamsters?
Mr. Slater. Would you repeat that question, please ?
Mr. Kennedy. You have discussed a number of business transac-
tions that Mr. Gessert was interested in. You have discussed them
this morning.
Mr. Shefferman. Yes, and you have that on record.
Mr. Kennedy. Now, I am going on to something new, and we dis-
cussed about the cars, for instance.
Mr. Shefferman. About what?
Mr. Kennedy. The little trucks.
Mr. Shefferman. Yes ; the little trucks.
Mr. Kennedy. Now, I am going to ask you if there were any other
business transactions that Mr. Norman Gessert, Mr. Dave Beck's wife's
cousin, were there any other business transactions in which he had
an interest, business transactions that he had, or this company had,
with the teamsters union.
IMPROPER ACTIVITIES IX THE LABOR FIELD 1645
Tliat is not very difficult.
Mr. SnEFFEKMAN. "What does the record show, and I think it is
indicated.
JVIr. Kennedy. You just tell me ; tell the committee.
(The witness consulted with his counsel.)
Mr. SiiErrERiiAN. I testified as to the toy trucks, didn't I?
Mr. Kennedy. Eight ; and what else ?
Mr. Shefferman. I testified as to the visible file system; is that
right?
Mr. Kennedy. That is right.
Mr. Shefferman. And I testified as to the furniture?
Mr. Kennedy. What was the furniture ? Was it the furniture you
sold to the teamsters union?
Mr. Shefferman. Yes, sir.
Mr. Kennedy. What else?
Mr. Shefferman. I think there was furniture, if I recall, for the
temporary headquarters when they first moved into the city. They
moved into the Letter Carriers" Building, and I think that they bought
some very fine furniture, but it was temporary.
Mr. Kennedy. Now, Mr. Gessert had an interest in that, did he?
Mr. Shefferivian. Yes, he had an interest in that.
Mr. Kennedy. Now, your son, Mr. Shelton Shefferman, and Mr,
Gessert had an interest in selling the furniture to the teamsters for
that temporary building?
Mr. Shefferman. I had no part of that one, I don't think.
Mr. Kennedy. Do you know what the profits from that transaction
were?
Mr. Shefferman. The profits from that transaction ?
(The witness consulted with his counsel.)
Mr. Shefferivian. Approximately, I am reminded here, they were
?:26,000.
Mr. Kennedy. $26,000 ?
Mr. Shefferman. Yes, sir,
Mr. Kennedy. Of which Mr. Shelton Shefferman made $13,000?
Mr. Shefferman. Yes, sir.
Mr. Ejennedy. And Mr. Norman Gessert, Mr. Dave Beck's wife's
cousin made $13,000; is that right?
Mr. Shefferman. $13,000.
Mr. Kennedy, That was for the sale of furniture to the teamsters'
headquarters, the temporary headquarters?
Mr. Sheffernan, Yes ; and that furniture was all made to order,
every piece of it, if I recall,
Mr. Kennedy, Do you know if the money that went to Mr. Gessert
was in turn passed on to Mr. Beck ?
Mr. Shefferman. I wouldn't know that at all.
Mr. Kennedy. You have no information on that?
Mr. Shefferman. I haven't the slightest information on that.
Mr. Kennedy. Did you ever purchase any cars for any union
officials?
Mr. Shefferman. Cars?
Mr. Kennedy. Automobiles, or for anybody associated with the
teamsters ?
(The witness consulted with his counsel.)
]Mr. Shefferman. I don't recall ever purchasing cars.
1646 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Let me say this
Mr. SHErFERMAN. Buyiiig as I would something else you mean?
Mr. Kennedy. Did you or your son ever purchase any automobiles
for any union officials or anybody associated in any way with the
teamsters union ?
Mr. Shefferman. With the teamsters union, I think we may have
purchased for them. I have a faint recollection of a Ford one time.
Will you please check on the record there i It nmst be in the records,
definitely. Are they in the records i
Mr. Kennedy. Do you luive any information on it?
Mr. Shefferjian. No; 1 don't. I think I faintly remember a Ford
we purchased for them at a discount, but they are in the record, I am
sure.
Mr. Kennedy. You have no personal information?
iSlr. Sheiterman. I have no personal information.
Mr. Kennedy. We have some information to that effect, Mr. Shef-
ferman. but we do not have it down to such a point that we can present
it. You do not have any information yourself?
Mr. Sheffjcrman. I clon't have any information and if you will be
kind enough to clieck the records, we will go back on it.
Mr. Kennedy. I have one more matter that I want to discuss with
you.
Mr. Shefferman. Thank you.
Mr. Kennedy. I^et me ask you this : D(i yon know jNIr. Sidney
Brennan ?
Mr. Sheffernan. Yes.
Mr. Kennedy. Now, you do know him?
Mr. Shefferman. I know Sidney Brennan.
Mr Kennedy. Mr. Sidney Brennan is a vice president of the
teamsters ?
Mr. Shefferman. One of the vice presidents.
Mr. Kennedy. Have you ever given any money to Mr. Sidney Bren-
nan, vice president of the teamsters?
Mr. Shefferman. Yes ; some years ago, and I don't remember when,
Mr. Brennan called and said that he was recommending a client on
the west coast, or somewhere. I don't know where it was, the west
coast or Montana, and tliat we might be able to help him and advise
with him. I think we did it over the telephone and then the company
hired us for the year at a fee to advise them on their personnel
problems.
Knowing that Mr. Brennan was not affluent, I said one day to my
son, "I think that this is a referral fee," because it is rather unusual
with us and we seldom have referral fees — I think for having sent the
client and having a client for a year and one client with whom I don't
think he had any interest so far as that was concerned away from
Minneapolis, and so I gave him a check for $750.
I asked them to give him a check for $750, and it was so noted in the
checkbook or in the record.
Mr. Kennedy, Tell me this : Mr. Shefferman, does it occur to you
at all that this is an unusual transaction that you are paying to a labor-
union leader money for referring a client to you?
Mr. Shefferman. I didn't really think about it in those terms, and
I have been thinking of it in terms of a referral fee. He never asked
for it, and I did it of my own volition.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1647
Mr. Kennedy. You think that is a completely proper transaction?
Mr. Shefferman. I didn't see anything improper about it, because
I had no dealing ^Yith Mr. Brennan in the matter. He had no interest
in the matter.
Mr. Kennedy. HaYe any of your clients any contracts with Mr.
Brennan's unions ?
Mr. Shefferman. None that I know of.
Mr. Kennedy. Have you had any clients up in Minneapolis?
Mr. Shefferman. I used to have Sears, Roebuck.
Mr. Kennedy. Now, do they not have contracts with the teamsters
union ?
Mr. Shefferman. They may have, and I don't know what it is in
Minneapolis in recent years, I have been out of touch with it for the
last 6 or 7 years, I should say.
Mr. Kennedy. Do you not have other department stores up there?
Mr. Shefferman. There was one department store, and it wasn't a
department store; it was Three Sisters.
Mr. Kennedy. Three Sisters?
Mr. Shefferman. Yes, sir; we have that.
Mr. Kennedy. Was there not a question of them having contracts
with the teamsters?
Mr. Shefferman. I don't think so and I don't think that they have
the teamsters and I woiildnt' be sure. I am quite sure they don't have
teamsters.
Mr. Kennedy. How did yon know Mr. Sidney Brennan, then ?
Mr. Shefferman. I knew him through the teamsters meetings and
the AFL conventions and other conventions, and conventions of other
unions. I got to know him very well.
Mr. Kennedy. Does it not occur to you at all tliat it is improper for
3'ou to be giving money to union officials?
Mr. Shefferjman. I wasn't really giving the matter any thought,
but I didn't think it was improper at all. As a matter of referral fee,
it was for him having sent us a client and we gave it no further
thought.
We just got the client and we did some woi'k for them and worked
and advised them for nearly a year on their personnel problems and
Mr. Brennan had absolutely nothing to do with them so far as I know
and I am sure with whatever the transaction may have been and I
think long before we got around to the transaction I think it was
settled between them out on the- west coast and our interest was
merely that
Mr. Kennedy. What was tlie name of the client that he got for
you ?
Mr. Shefferman. Skogmo-Gamble.
]\Ir. Kennedy. What kind of a company is that ?
Mr. Shefferman. They set up chain stores.
Senator Mundt. It is automobile and accessories. It is the Gamble
stores, is it not ?
Mr. Kennedy. Do they have any contracts with the teamsters
union ?
Mr. Shefferman. They may have had there and I didn't know
anything about it and we were only interested in one issue and in one
issue only.
1648 IMPROPER ACTIVITIES IN THE LABOR FIELD
At that time there was some sort of an involvement or whatever it
was on the west coast or somewhere in Montana and we never went
to the coast and we had absolutely nothing to do with it and we never
touched it and in the meantime
Mr. Kennedy. Do not say you never touched it. You got a fee
for it.
Mr. Sheffeeman. No, we got a fee not for that and we got the
fee for doing personnel work and advising them through the years
and that is what we got the fee for and not for that.
Mr. Kennedy. You did get a fee for it, did you not ?
Mr. Shefferman. We got a fee for serving them, yes.
Mr. Kennedy. Wliat were you saying you did not have anything
to do with ?
Mr. Shefferman. Any negotiations or anything of that sort.
Mr. Kennedy. Nevertheless, Mr. Shefferman, the fact remains that
you paid to a teamster union official $750.
Mr. Shefferman. Which I thought was perfectly proper.
Mr. Kennedy. Have you given any money to an}' other union
officials ?
Mr. Shefferman. No.
Mr. Kennedy. In a similar transaction?
Mr. Shefferman. No.
Mr. Kennedy. You have not ?
Mr. Shefferman. No.
Senator Mundt. Have you had any other business or purchasing
relationships with Mr. Sidney Brennan, other than this $750 fee ?
Mr. Shefferjiian. A purchasing relationship, yes. Mr. Brennan
lias quite a few times bought things for him and his family.
Senator Mundt. Would you know whether he paid for those out
of his personal fund ?
Mr. Shefferman. That I wouldn't know. For that we would have
to check the record again and it is in the record.
Senator ]\Iundt. That you would not know ?
Mr. Shefferman. No, I wouldn't know.
Senator Mundt. Aside from the fact that you purchased things at
discount for Mr. Brennan and one time gave him $750 referral fee,
have you had any other business connections ?
Mr. Shefferman. With him, you mean ?
Senator Mundt. Or exchanges of money?
Mr. Shefferman. With him, no.
The Chairman. The Chair presents to you the $750 check to Mr.
Sidney Brennan.
Will you examine it and identify it, please ?
(The witness conferred with his counsel.)
Mr. Shefferman. Yes. It is a corporate check.
The Chairman. A corporate check?
Mr. Shefferman. A corporate check.
The Chairman. All right.
That check may be made exhibit No. 129.
(Document referred to was marked "Exhibit No. 129" for reference
and will be found in the appendix on p. 1721.)
Mr. Kennedy. I would like to say that Mr. Sidney Brennan, Mr.
Chairman, has just been convicted, and the conviction was appealed,
and the conviction was upheld, for receiving moneys from an em-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1649
ployer in another matter. He was receiving money and he was tried
and convicted and is now under sentence.
Mr. Shefferman. Mr. Kennedy, may I make an observation?
The Chairman. Yes, you may make an observation.
Mr. Shefferman. The circumstances under which this money was
ojiven to Mr. Brennan was on record, on the books, well-intentioned, I
didn't think I was doing anything improper, and I don't think it can
be analogous to the other thing you are talking about.
Mr. Kennedy. I am just putting it into the record as a fact.
Mr. Shefferman. Thank you very much.
The Chairman. Are there any further questions of this witness?
If not, you may stand aside for the present.
Will you need him any further ?
Mr. Kennedy. Not today.
Senator Goldwater. I have one question, Mr, Chairman.
The Chairman. All right.
Senator Goldwater. This is one name to add to the list. Have you
ever done business for Mr. Eandolph ?
Mr. Shefferman. Randolph?
Senator Goldwater. Yes.
Mr. Shefferman. No.
The Chairman. Any other questions?
Mr. Kennedy. Did you have any other business transactions with
Dave Beck, other than the ones that 3'ou mentioned ?
Mr. Shefferman. None.
Mr. Kennedy. You did not have a business transaction, in 1949,
with him ?
Mr. Shefferman. 1949?
Mr. Kennedy. Yes.
Mr. Shefferman. "What was the character of it?
Mr. Kennedy. 1949.
Mr. Shefferman. Wliat was the character of it ?
Mr. Kennedy. Regarding a mortgage, a mortgage of land ?
Mr. Shefferman. Oh, a mortgage?
(The witness conferred with his counsel.)
Mr. Shefferman. That was a loan I made Mr. Beck years ago.
That goes back a long, long time.
Mr, Kennedy. How much did you loan him ?
Mr, Shefferman. Mr. Beck bought some property and gave me a
mortgage and a note, for 32— how much was that ?
(The witness conferred Avith his counsel.)
Mr. Shefferman. $22,500.
Later, when he got into some of these real-estate deals, he asked
me whetlier I would relinquish the mortgage so that he could raise
some money at the bank. I relinquished the mortgage and got a new
note, which I am
Mr. Kennedy. You received a note ?
Mr. Shefferman. I received a note.
Mr. Kennedy. Do you still have the note ?
Mr. Shefferman. We have the note; yes.
Mr. Kennedy. He has not paid off the note yet?
Mr. Shefferman. Pie hasn't paid off the note.
Mr. Kennedy. Has he paid any interest on the note ?
S9330— 57 — pt. 5 10
1650 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Shefferman. T don't think so, because I never asked liim.
Mr. Kennedy. How long a^o was this?
Mr. Shefferman. Did you say 1949?
Mr. Kennedy. 1948 or 1949. When was your first business trans-
action ? Wlien was the first part of it ?
INIr. Shefferman. I don't know. I thought
Mr. Kennedy. You tell us.
Mr. Shefferman. I don't even remember.
Wait a minute. We can get you the date.
(The witness conferred with his counsel.)
Mr. Shefferman. The note is dated April 1951.
Mr. Kennedy. The note is dated April 1951. When did you first
loan him the money ?
Mr. Shefferman. You said 1949.
Mr. Kennedy. Well, when do you say ?
Mr. Shefferman. I don't know. 1 would have to look at the
record again.
Mr. Kennedy'. In 1948? Was it before that? Was it prior to
1948?
Mr. Shefferman. I wouldn't recall that. Wait a minute. Let
me see. I think it was 1949. The records will show it.
Mr. Kennedy. And you loaned him the money, did you ?
Mr. Shefferman. Yes; I loaned him the money and got a mort-
gage and then released the mortgage.
Mr. Kennedy. On property that he owned ?
Mr. Shefferman. On property that he owned, yes, at that tipie.
and then he was borrowing more money and turning over the property.
Senator Mundt. How much was the amount of that note ? $'22,500 ?
Mr. Shefferman. $22,500.
Senator Mindt. And you loaned him that money in 1949?
Mr. Shefferman. I think it is 1949, yes.
Senator Mundt. And then you relinquished the note in 1950 or
1951 ?
Mr. Shefferman. 1951.
Senator Mundt. And you took a promissory note in its place?
Mr. Shefferman. Yes, a promissory note.
Senator Mundt. What was the vear that vou gave ]Mr. Beck the
$24,000?
Mr. Shefferman. What was the year? 1949 and 1950 — 1949 and
1950.
The Chairman. 1949 and 1950?
Mr. Shefferman. I think it was. 1949 and 1950.
Senator Mundt. You gave him the $24,000, apparently, after you
had held his note for sometime for $22,500?
Mr. Shefferman. T couldn't give you the chronologv of that. I
am testifying without the records. If we could get the records, I
think you could check the time.
Senator Mundt. It would appear, from what I understand, that
you first made the mortgage in 1948 or 1949, and that you accepted a
note in lieu of the mortgage in 1950 or 1951, and in between those
years sometime Avas the period when you gave him the $24,000. You
must remember about when you gave him the $24,000.
Mr. Shefferman. That is still on the record, isn't it ?
Mr. Kennedy will you
lAIPROPEK ACTIVITIES IN THE LABOR FIELD 1651
Senator Muxdt. I understood from my memory of yesterday's tes-
timony that that was about 1950, 1949 or 1950.
Mr. SiiEFFERMAX. Yes ; I think so.
Senator Mundt. Under those circumstances, it would seem to me —
and you mention the fact that one of the reasons you were impelled to
Slive Mr. Reck this $24,000 business transaction deduction was that
3'ou were in a high-income bracket and that you had reason to believe
rhat Mr. Beck was not in as equally good financial circumstances —
that you would have just cancelled that note then, instead of giving him
$24,000. It was about the same amount of money.
(Tlie witness conferred with his counsel.)
Mr. Sheffermax. I don't know the chronology of it. Senator. I
don't really remember before or after.
Senator Mundt. Are you sure that instead of giving him $24,000
rliat you have not wound up now by giving him $46,500^
Mr. Sheffp:rmax. No. He owes me $22,500. I have a note for it
and I expect to be paid.
Senator Mundt. But he has paid no interest on it ?
Mr. Siiefferman. He has paid no interest.
Senator Mi^ndt. Is it an interest-bearing note?
Mr. Sheffermax. I don't even know. It is in the office or in the
baTik.
Senator Mundt. You do not know ? Then you do not have a legal
document if you do not have an interest-bearing note. You just have
A slip of paper.
Mr. Sheffermax. He says it is a valid note without interest. I
don't know.
.Senator Mundt. It must have some kind of interest, then.
Mr. Siiefferman. I don't know. I think probably it is an interest-
beaj'ing note.
The Chairman. Are there any further questions?
You can appreciate that this is a very strange thing, a man owing
you money and you issuing checks to him in excess of the amount
lie owes you.
Mr. Siiefferman. He still owes me the $22,500.
The Chairman. I understand he owed it at the time you gave these
<',hecks to charge off business expense.
Mr. Siiefferman. I don't know. Which, the $24,000 ?
The Chairman. It would have been easier to give him the note,
would it not?
Mr. Siiefferman. The $22,000 was accounted for. The tax was
paid on that.
The Chairman. I am talking about the $24,500 that you gave him.
Mr. SiiEFraRMAN. I don't remember the chronology of the two.
The Chairman. It appears the first transaction on the loan was
prior to the time that you paid him the $24,000, and he owed you at
that time. The simplest thing to have done, to collect your money,
woidd have been to give him the note, would it not. if voii were going
to give the $24,000 away.
Mr. SiiEFFERMAN^. He wouldn't have had the $24,000.
The Chairman. But he would not owe you the $24,000.
Mr. Siiefferman. Yes. But he ovres "me the $22,500.
The Chairman. He would not have owed that.
Mr. Siiefferman. He wouldn't, but he does now.
1652 IMPROPER ACTIVITIES IN THE LABOR FIELD
The Chairman. And did then.
Mr. Shefferman. Yes. And he does now.
The CHAiiiMAN. Well, it is a strange situation.
Proceed.
Mr. Kennedy. Did you go to South America with him?
Mr. Shefferman. No. I have never been to South America.
Mr. Kennedy. Did you go to Europe with him ?
Mr. SnEFFERisrAN. I have been to Europe with him. yes.
Mr. Kennedy. Did you pay any of his bills ?
Mr. Shefferman. Absolutely not. Neither did he pay mine.
(At this point. Senator McCarthy entered the hearing room.)
The Chairman. Is there anything further ?
Mr. Shefferman, I am going to ask you to remain here for awhile
this afternoon. Maybe something will occur or develop so that we
will need to recall you. As far as I know now, this concludes your
testimony at this time.
Mr. Shefferman. Thank you.
The Chairman. It is anticipated that there is some probability, at
least, that it may be necessary to recall you to further straighten out
some of this record that has been made here today, and there may be
other developments, of course, that we do not now anticipate, which
will require your presence.
So the Chair, if you will accept it, will place you under recognizance
to return at such time as the committeee may desire your presence
again, upon reasonable notice being given to you or your attorney of
the time.
Mr. Slater. Mr. Chairman, I should appreciate it if the notice is
directed to me. In this instance
The Chairman. What did you say ?
Mr. Slater. I said I should appreciate it if the notice were directed
to me, and that we be given more than an hour's notice, if the Chair
please.
Mr. Shefferman. There was a possibility that we wouldn't have to
appear for a week, wasn't there, Mr. Kennedy ?
Mr. Kennedy. That is right.
Mr. Shefferman. After all, we are trying to stay in business, and
there are appointments
The Chairman. Sometimes circumstances develop where we cannot
do everything we would like to. In this instance, so far as I know,
there will be every opportunity afforded to you in the way of rea-
sonable time.
Senator McCarthy. Counsel does have to operate under a rather
tight schedule.
Mr. Shefferman. I understand.
Mr. Ivennedy. You have been very cooperative and we appreciate it.
Senator Mundt. Before Mr. Shefferman leaves the stand, Mr.
Chairman, I would like to say that while at times he has been a little
bit exasperating as a witness, because his memorj^ is not as good as we
would like to have it
Mr. Slater. Senator Mundt, the gentleman is over 70 years old.
Senator Mundt (continuing). And I appreciate we have the rec-
ords, but in spite of that, as one member of the committee, I would like
to commend you and say that you have tried to give us helpful in-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1653
formation. You were a refreshing change from the incommunica-
bility of the witness preceding you on the witness stand.
I trust that the way you have performed here will be contagious
with the witnesses we have following.
Mr. Shefferman. God bless you for the few kind words. This will
tide me over the weekend very nicely.
.Senator McCarthy. I might add to that. I have been a judge and
a lawyer for a long time, and I thuik I can smell a man who is lying
a mile away. While I have been very disappointed with your extreme-
ly bad memory at times
Mr. Shefferman. I am 70 years old.
Senator McCarthy (continuing). I do have the impression that
you have been trying to tell us the truth.
Mr. Shefferman. Senator, I shall be 70 years of age in July. I
knock off 150,000 miles a year. I run around crusading for our way
of hfe. I am a busy man. I can't remember everything. I wish I
could.
Senator McCarthy. I understand that.
(At this point. Senator McNamara entered the hearing room.)
The Chairman. The Chair, as I am sure everyone present has ob-
served, and I know members of the committee have, has been very
indulgent in permitting you to consult with your attorney and let
him give you information that he has instead of requiring you to
testify on your own.
Mr! Shefferman. I appreciate that very much.
The Chairman. The rule is, of course, that counsel may be pres-
ent for one purpose only, and that is to advise his client as to his
legal rights. Since the Chair believed that you were trying to be co-
operative and that you needed some assistance to help refresh your
memory, therefore, 1 have indulged counsel and your assistants that
}ou brought along with you to assist you.
Mr. Shefferman. Thank you.
Mr. Slater. Mr. Chairman, I wish to personally thank you for
your indulgence in this instance.
Mr. Shefferman. And I want to thank my friend, Mr, Kennedy,
for having smiled with me.
The Chairman. You will remain here.
Mr. Slater. Until the end of the day, is that the understanding?
The Chairman. Until the end of the day. Possibly you might be
recalled.
Senator McCarthy. Might I suggest, Mr. Chairman, before the
witness leaves, in view of the expressions of Senator Mundt and my-
self, I would hate very much to be proven wrong in this.
Mr. Shefferman. Please. We won't let you down.
Senator McCarthy. What I wish you would do is search your
memory for some of those answers which I frankly think you should
have. I realize, as you say, you are 70 years old, and your memory
may not be as good as it used to be. But if you will search your mem-
ory and communicate with the chairman or Mr. Kennedy, I am sure
they would welcome you back to the stand again.
The Chairman. All right. Thank you very much.
Mr. Shefferman. Thank you.
The Chairman. Call the next witness.
1654 niPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Kennedy. Mr. Dave Beck.
(Members present at this point: The Chairman, Senators Ives. Er-
vin, iMcXamara, McCarthy, Mundt, and Goldwater.)
TESTIMONY OF DAVE BECK, ACCOMPANIED BY HIS COUNSEL.
AKTHTJR D. CONDON, DAVID FOSS, AND KENNETH SHOET—
Resumed
The Chairman. Let us have order, please.
Senator McCarthy. Mr. Chairman, before the questioning starts,
I would like to ask Mr. Beck whether he did what he said he would
do yesterday, namely, confer with his chief counsel, Mr. Dufl:', and
decide whetlier he would answer some of the questions which he re-
fused to answer yesterday.
Mr. Beck. Yes, Senator McCarthy, I did confer with Senator Duif ,
and Senator Duff's position is exactly as it was before.
Senator McCarthy. In other words, he has advised you not to
answer the question ?
(The witness conferred with his counsel.)
The Chairman. Just a moment.
Mr. Condon. Mr. Chairman?
Senator McCarthy. I would like to address this to the witness,
if I may.
The Chairman. It is addressed to the witness. Does counsel wisli
Mr. Condon. I hope the Chair will agree that if there is anything
that has been established here, it is the fact that an attorney-client
relationship exists between the two gentlemen just named.
The Chairman. You may advise the witness of his legal rights in
that respect. If the witness invokes client-counsel relationship, that
will address itself to the attention of the chair of the committee.
Senator McCarthy. May I say, before you do that, I did not bring
up the attorney-client relationship. The witness mentioned the for-
mer Senator Duff's name, I believe, 18 times yesterday, by actual
count, and told what he had been advised by Mr. Duff. In' view of
that, I asked him whether he would consult with Mr. Duff
Mr. Condon. And he said he had.
Senator McCarthy. And find out whether Duff Avould still advise
him not to answer these questions. I cannot imagine Jim Duff doing
that.
(At this point, Senator Kennedy entered the hearing room.)
Senator McCarthy. I am not probing the attorney-client relation-
ship that was not opened up by the witness himself.
Is that right, Mr. Kennedy"?
The Chairman. I think, Senator McCarthy, you have asked the
witness whether he consulted with Mr. Duff, and lie said that he had,
and that his position was the same. Now we have clarified that.
Your position is the same as your position yesterday ; is that coirect '.
Mr. Beck. That is right, Senator.
The Chairman. That means that he has instructed j^ou to continue
to refuse to answer ?
Mr. Beck. That is right, Senator.
The Chairman. Let us proceed.
IIMPROPER ACTIVITIES IN THE LABOR FIELD 1655
Mr. Kennedy. Mr. Beck, we have had testimony that among the
fmids that you took from the union was some $85,119.92 that was
used through Mr. Nathan Shefferman to pay your personal bills.
Would you tell us whether you did this or not i
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority mider articles I, II, and III of
the Constitution; further, I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments; and, further, because the question is not relevant or pertinent
to the investigation.
The Chair]man. The Chair overrules, in toto, the objection of the
witness, and orders and directs him to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. Proceed.
Senator McCarthy. Could I ask the witness this question :
Yesterday I asked you what in articles I, II, and III, in your opinion,
deprived this connnittee of jurisdiction. You declined to answer that
on the grounds that the answer might tend to incriminate you. You
do not think that by telling us what the Constitution contains would
incriminate you, do you?
(The witness conferred with his counsel.)
Mr. Beck. Well, Senator McCarthy, I am quite certain that I told
you that I was a layman and not a legal luminary, and that I desired
to answei- your question for that reason in order to protect my con-
stitutional rights by answering it in the manner that I must decline to
answer the question because this committee lacks jurisdiction or au-
thority under articles I, II, and III of the Constitution; further, I
decline to answer because I refuse to give testimony against myself
and invoke the fourth and fifth amendments; and further because
tlie question is not relevant or pertinent to the investigation.
Senator McCarthy. Just tell me. I am curious. I have read arti-
cles I, II, and III. Wliat is there in articles I, II, and III, that, in
your opinion prevents your answering these questions ?
Mr. Beck. Senator McCarthy, I have tried to tell you that you are
an attorney. I am a layman. In order that there is no possibility
that I will transgress my constitutional rights, I have answered you
by stating that I exercise articles I, II, and III of the Constitution ;
and further decline to answer because I refuse to give testimony
against myself ; and I invoke the fourth and fifth amendments ; and
further because the question is not relevant or pertinent to the in-
vestigation.
Senator McCarthy. Mr. Beck, I do not want to argue this point
with you. You say you are a layman, not a lawyer. But article I, as
I recall, and I ho])e I am not wrong on this, provides that the legis-
lative branch shall have the right to investigate for the purpose of
passing legislation, legislation concerning the people of America.
Yon represent a vast number of them.
I just wonder why you feel that you are above the law insofar as
article I is concerned.
Mr. Beck. Mr. McCarthy — Senator McCarthy, excuse me. I point
out to you again that I not for one second feel that I am above the law.
1656 IMPROPER ACTIVITIES IN THE LABOR FIELD
I have pointed out to you that I have been served notice by the Fed-
eral Government that I will face tax income procedure, and upon
advice of counsel that I am following, I am invoking the amendments
that I have read to you, in order to make certain that I will protect
my constitutional rights, and that I will have an opportunity, with-
out imposing upon them in any way, when and if ever a trial is held
under the auspices of our judicial structure, with a right to cross-
examine witnesses, with a right to the presentation of evidence in
accordance with court procedure, with a right to face my accusers in
the court, and all of the other judicial requirements, and also I point
out to you that the fifth amendment was not written into this Con-
stitution simply for the purpose of it ever protecting the guilty. It is
also there for the purpose of protecting the innocent. It is for that
reason that I exercise it.
The Chairman. Just a moment.
You know, there comes a time when patience can cease to be a virtue.
I want us to ask this witness direct questions about his acts, conduct.
If he wants to take the fifth amendment, that is a privilege. In doing
so, in my opinion he violates a much higher duty. Let him make the
record as he chooses.
Let us proceed and ask him direct, positive questions about his con-
duct, as this record indicates.
Senator McCarthy. Mr. Chairman, these questions are not being
asked in a spirit of levity. The witness invokes articles I, II, and III
of the Constitution. I believe before the Chair can intelligently rule
he must know what he has in mind. I do not have any idea what he
has in mind when he invokes those three articles of the Constitution.
The Chairman. The (^hair has overruled them each time, every
time.
Senator McCarthy. I accede to the Chair.
The Chairman. The Chair was not impatient at the Senator. I
want that definitely understood. I did not mean any such implica-
tion. But I am getting pretty tired of listening to a broken record.
If we want to continue this, I want to get the questions direct and
positive about this man's conduct or his lack of conduct, and let him
take the fifth amendment and get any dubious glory out of it he
thinks he can get.
Proceed.
Mr. Kennedy. Mr. Chairman, we have had some of the bills that
were paid by union funds put in the record this morning. Mr. Adler-
man, assistant chief counsel, is there with some of those bills. I would
like to have Mr. Beck identify them.
(The witness conferred with bis counsel.)
Mr. Adlerman. Mr. Beck, I show you exhibit No. 119, consisting of
a bill of the Yorozu Gardening Co., and I call your attention to the
fact that there is an attachment to it in your handwriting with the
notation "From the desk of Dave Beck." Will you identify your
signature on that or your handwriting ?
Mr. Kennedy. Will you identify your signature on there, please?
Mr. Condon. Before he answers, why not show him all the exhibits,
before he answers ? It might save time.
Mr. Kennedy. I want him to answer that one.
Mr. Condon. One at a time?
Mr. Kennedy. Yes.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1657
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution; further, I decline to answer because I refuse to
give testimony against myself and invoke the fourth and fifth amend-
ments; and further, because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair overrules the objections and refusal to
answer, and, therefore, orders and directs the witness to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. Proceed.
Mr. Kennedy. Mr. Beck, do you feel that if you gave a truthful
answer to that question it might tend to incriminate you ?
(The witness confered with his counsel.)
Mr. Beck. It might ; yes.
Mr. IvENNEDY. Wliat was that bill for, there, Mr. Adlerman, the
first one you showed him ?
Mr. Adlerman. It is from the Yorozu Gardening Co., and the
amount on the face is $1,918.15.
Mr. Kennedy. Was that bill paid out of union funds for your
benefit, Mr. Beck?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III
of the Constitution; further, I decline to answer because I refuse to
give testimony against myself, and invoke the fourth and fifth amend-
ments; and further, because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair overrules again the objection of the
witness, and his refusal to answer, and orders and directs him to an-
swer, with the approval of the committee.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. Proceed.
Mr. Kennedy. Do you feel, Mr. Beck, that a truthful answer
might tend to incriminate j'ou ?
Mr. Beck. I definitely feel that it might ; yes.
Mr. Kennedy. Will you show him the next bill, please ?
Mr. Adlerman. There are a series of four bills, marked "Exhibits
120-A, 120-B, 120-C, and 120-p,'" from the Yorozu Gardening Co.,
to Dave Beck, at 16747 Shore Drive, in various amounts.
Do you want me to specify the amounts ?
Mr. Kennedy. No. They are in the record already.
Mr. Adlerman. On the last page of exhibit 120D there is a hand-
written note on the stationery of "from the desk of Dave Beck,"
which reads "Xate, please send check on this. DB." I believe this
was identified as the handwriting of Mr. Beck by the previous wit-
ness.
Mr. Kennedy. Do you identify that, Mr. Beck?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further, I decline to answer because I refuse to give
testimony against mj'self, and invoke the fourth and fifth amend-
1658 IMPROPER ACTIVITIES IN THE LABOR FIELD
ments; and further, because the question is not relevant or pertinent
to the investigation.
Tlie Chairman. The objections are overruled, and the refusal to
answer is rejected.
The witness, with the approval of the committee, is ordered and
directed to answer the question.
Mr. Beck. I de<*line to answer on the grounds stated in my last
answer.
Mr. Kennedy. Do you feel that a truthful answer might tend to
incriminate you ?
Mr. Beck. It might, yes.
Mr. Kennedy. Were union funds used, Mr. Beck, to pay for your
gardening, at your home ?
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution : further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amend-
ments ; and further because the question is not relevant or pertinent
to the investigation.
The Chairman. The objection is overruled, and the refusal to
answer is rejected. With the approval of the committee, the Chair
orders and directs you to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Do you feel a truthful answer might tend to incrim-
inate you? If you gave a truthful answer to that question as to
whether union funds were used to pay your gardening, do you feel
that might tend to incriminate you ?
Mr, Beck. It might, yes.
Mr. Adlerman. Mr. Beck, I show you exhibit No. 121, which is a
bill of Prentice Nursery & Decorating Co., addressed to vou, dated
July 22, 1952, in the amomit of $2,159.77.
(Document handed to witness.)
Mr. Kennedy. Would you identify that, please?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further, I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments; and further because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair overrules the objections and rejects the
witness' refusal to answer.
With the approval of the committee, the Chair orders and directs
the witness to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Mr. Beck, do you feel that if you gave a truthful
answer to that question, that it might tend to incriminate you ?
Mr. Beck. It might, yes.
Senator McCarthy. Mr. Beck — Mr. Chairman, if I might inter-
pose-
The Chairman. Yes, Senator.
IMPROPER ACTINITIES IN THE LABOR FIELD 1659
Senator McCarthy. 1 am not acting as your lawyer or anything,
but I just wonder if you would not reconsider. You are liead of the
most powerful union in the country. By your answer, when you say
■'I refuse to tell whether I misused union funds because the answer
would tend to incriminate me,'" you ai^ telling the union members
that you did misuse the funds, and by doing that, you are tearing down
a powerfid union, a union that has done a lot of good, and you are
building up a goon over in Detroit. Do you not realize that?
Mr. Beck. Senator McCarthy, I say to you that I am confronted,
and have been notified by the Government, and there is a possibility,
a gi-eat possibility, that I will have to face income-tax litigation in
the courts. I am a layman. I am not a legal luminar3^ I am follow-
ing out the advice of what T consider competent counsel. It is for
that reason that I must decline to answer the questions, and exercise
the privileges of the Constitution that I have outlined, and the Bill
of Rights.
Mr. Kennedy. You feel that truthful answers to these questions
would tend to incriminate you? You feel that vourself, do you not,
Mr. Beck?
Mr. Beck. It might tend to incriminate me; yes.
Mr. Kennedy. All right. Yoit feel that, yourself, that truthful
answers to these questions about your use of union funds, some
So20,000 worth of union funds, you feel that giving truthful answers
about your use of those funds might tend to incriminate you ?
Mr. Beck. With litigation that I think confronts me, ft might ; yes.
Mr. Kennedy. Did you take from the union some $320,000 of union
funds?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further, I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments ;
and further because the question is not relevant or pertinent to the
investigation.
Mr. Kennedy. Do you feel that if you gave a truthful answer to
this committee on your taking of $320,000 of union funds, that that
might tend to incriminate you ?
Sir. Beck. It might.
Mr. Kennedy. It might tend to incriminate you ?
Mr. Beck. Yes ; it might.
Mr. Kennedy. You Imow enough about your use, or your taking
of the $320,000, that if you gave a truthful explanation and answer to
tliat, it might tend to incriminate you?
Mr. Beck. It might.
(The witness conferred with his counsel.)
Mr. Kennedy. Is that right ?
Mr. Beck. It might.
^Ir. Kennedy. You feel that yourself ?
]Mr. Beck. It might.
Mr. Kennedy. I feel the same way.
The Chairman. We will have order, please.
Mr. Kennedy. I want to know, breaking that money down, Mr.
Beck, did you use union funds to purchase 5 dozen diapers for some
of your friends at $9.68 ?
1660 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or autliority mider articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amendments,
and further because the question is not relevant or pertinent to the
investigation.
Senator McCarthy. I might say, Mr. Counsel, that I have
The CiiAiEMAN. The Chair overrules the objections in toto of the
witness, and his refusal to answer., and, with the approval of the com-
mittee, orders and directs him to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Does the general president of the International
Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers
of the United States feel that givino; a truthful answer to whether he
used $9.68 to buy 5 dozen diapers, $9.68 of union funds to buy these
5 dozen diapers, it might tend to incriminate him ?
Mr. Beck. I must decline
Mr. Kennedy. Do you feel that that might tend to incriminate you?
Mr. Beck. It might.
Off the record, Senator, you are assured it is not for myself, those
diapers.
The Chairman. Some might question that last statement.
Let us proceed.
Mr. Kennedy. Were union funds, Mr. Beck, used to pay the per-
sonal bills also of your son, Mr. Dave Beck, Jr. ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments ; and further because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair overrules the objections interposed by
the witness and his refusal to answer, and, with the approval of the
committee, orders and directs him to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my Istst
answer.
Mr. Kennedy. Do you feel that a truthful answer might tend to
incriminate you ?
Mr. Beck. It might.
Mr. Kennedy. Were two aluminum boats, at the cost of $196.50,
purchased for your son, Dave Beck, Jr., out of union funds ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments ; and further because the question is not relevant or pertinent to
the investigation.
The Chairman. The Chair overrules the objections interposed by
the witness, and his refusal to answer, and, with the approval of the
committee, orders and directs him to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1661
Senator Mundt. Mr. Chairman ?
The Chairman. Senator Mundt?
Senator Mundt. To break up the routine temporarily on these
questions and answers about the aritlimetic involved, I would like to
ask Mr, Beck a somewhat different question.
I want to read you the firet paragraph, Mr. Beck, of an article in
the New York Herald Tribune of this morning, Wednesday, March 27,
written by a man whom I consider to be a great American and a fine
newspaperman, Mr. David Lawrence.
I hope that you agree with me in my high regard for him. He has
been here a long time. He is objective. He edits a magazine which
most of the Senators read each week, and I hope you read it, U. S.
News & World Eeport.
I want you to listen to the first paragraph. The heading is —
Beck Called Morally Bound to Make a Full Disclosure
(By David Lawrence)
I^ave Beck, head of the Teamsters Union, has a legal right to avoid giving
testimony that could be used against him in a future trial. But in the courts
of public opinion, he is bound by a moral obligation to make a full disclosure of
what he has done with the funds entrusted to him by his labor union members.
Do you agree -with me that there is a lot of validity, commonsense,
and equity in what Mr. Lawrence wrote in that column this morning?
Mr. Condon. Mr. Chairman?
The Chairman. All right. Counsel.
Mr. Condon. Before the witness answers that question, may I make
an observation on Senator Mundt's question ?
It occurs to me, and perhaps it has to Senator Mundt, too, that the
author of that article may not realize that the immmiity statute that
existed on our books until sometime in 1954, under which Mr. Beck
couldn't possibly find himself in the predicament he is in now, facing
imminent prosecution, indictment, for Federal income tax alleged
violations, it occurs to me that you may have taken that into account,
too, that the immunity statute, as you know, was repealed some 3
years ago, and the immunity statute now on the books is of an entirely
different nature and does not provide the protection to a man in Mr.
Beck's situation that that one did.
It occurs to me that the writer of that article was laboring under
the misapprehension that citizens still have the protection when they
testify before these congressional committees^ of the type of immunity
that they had 3 years ago, and before that time, under which, as you
know, their testimony could not be used against them in subsequent
actions or prosecutions or litigation.
Senator Mundt. Mr. Condon and Mr. Beck, the immtmity statute
in no way involves a witness whose honest testimony can be freely
given on pertinent questions in such a way that he does not get him-
self involved in some kind of legal entanglement. It has been my
hope throughout these hearings that Mr. Beck could make a fiill dis-
closure, could give honest, factual, and forthright replies, and that he
was free enough from the allegations which have been made so that
those honest answers would not involve him in litigation.
Of course, if you know, if he knows, and if Mr, Duff' knows
information which we do not have, which means that honest answers
1662 IMPROPER ACTIVITIES IX THE LABOR FIELD
to these very relevant questions would get him involved with Federal
authorities, then he has tlie right, under the present immunity statute,
to plead the fifth amendment.
I was asking the question of whether you did not feel there was a
lot of good sense in what Mr. David Lawrence pointed out, and that
you have a moral obligation to the teamsters themselves, whose dues
have built the empire which you run, to make that kind of full
disclosure.
(The witness conferred with his counsel.)
Mr. Beck. Senator Mundt, let me answer this way : I dislike very
much the delay that occurs. I would like to answer questions fully
and completely. But I have outlined to the committee very definitely
the reasons why I aan following the procedure of exercising consti-
tutional rights. I am doing it strictly on the advice of most eminent
counsel, counsel who himself was a Member of this United States
Senate, and I cannot employ that counsel to advise me, in all the
intricacies that are involved, and the possibility of future legal action,
and disregard that advice. Because I am following that advice, in
my personal opinion, I must consider the long pull, the fact that I
may face court procedure.
I have no doubt in the slightest degree, in my own mind, the final
determination of it, that in a court of law, with the right to face my
accusers, cross-examination, and rules of evidence applying, and other
things that do not handicap or impede me, that I will be able to give
a full, final, and satisfactory answer to it all.
But in the interval of that time, unfairly or fairly, regardless of
any sentiment or emotion that may arise, any abuse or semiabuse,
or sarcasm, that may confront me, I am big enough and broad enough
and able to take it, and I am going to exercise my constitutional and
legal rights as has been recommended to me by my legal coinisel.
Senator Muxdt. If 3'ou were big enough and broad enough and
able enough, which I think you are, to answer these cpiestions honestly
and direct!}', we would all get through with this unhappy business
a lot quicker.
Mr. Beciv. Senator Mundt, may I emphasize to you that in my
answers I am following out the advice of legal counsel, and I intend
to follow it out. That is the reason I hired it. I think it is eminent
counsel, of high-class American citizenship, and in my opinion I can
do nothing but follow out that advice.
(At this point. Senator Kennedy withdrew from the hearing room.)
Senator Mundt. The difficulty, Mr. Beck, is this, that if that advice
proves to be erroneous, it is you who stands here before the Anierican
public with the full implications of the statement you are making.
It is you who has the responsibility to the teamsters of America, not
jSIr. Duff, not Mr. Condon, not anybody else. This is your individual
responsibility and decision which you can make after deliberation and
counsel witli your attorneys. But, after all, it is your decision that
has to govern.
Mr. Beck. Senator Mundt, let me answer you this way : I fidly
realize all my responsibilities to this international iniion, and I have
had some little part in building it to its present stature. I don't hire
a doctor and not follow his advice, ancl if he makes a mistake and
takes out my appendix when he should have taken out my liver, I ani
IMPROPER ACTIVITIES IN THE LABOR FIELD 1663
the one tliat will sutfer. I iinderstiuid fully of Senator Dutf and his
associate counsel
The Chairman. Can tlie Chair ask yon to speak a little louder? It
is difficult to hear you.
Mr. Beck. I will do my best to speak louder, if you desire, sir.
Mr. CoNDOx. Mr. Chairman ?
Senator Mrxin. Mr. Beck, a lot of us have hired doctors, and if we
do not get well Ave get a different doctor or take some different advice.
I do not think you are getting well, based on the testimony you are
giving. Maybe you ought to give some thought to changing counsel.
I do not me<in the individual counsel, but changing the reaction that
you have from the counsel you are getting.
Mr. Beck. Senator Mundt, do you advocate that I get different legal
counsel ?
Senator Mixdt. No, sir. I advocated at the beginning, from the
counsel that you have been receiving, that you give different kinds
of answers, because, after all, these are your decisions.
Mr. Beck. Senator Mundt, perhaps my legal counsel's decisions
and advice to me don't meet with your approval. I have no ob-
jections to that. But I am carrying out that advice and I am going
to continue to carry it out, because I have eveiT confidence in the coun-
sel that I have retained.
Senator Mundt. It is not important whether they meet with my ap-
proval or not. They certainly do not meet with the approval of a
great man}' of the members of your union who are writing me letters
and making telephone calls, and who are saying, "We believe that per-
]ia])S Dave Beck hasn't been propei-ly treated by your connnittee. We
can't believe that he can stand there and duck and dodge and refuse to
answer questions about whether he has stolen the money, when we
paid the dues.''
These are the people who are worrying about it. I am trying to help
you, if I can, to see your moral obligation to them, and to make some
kind of statement other than that routine that you have been going
through.
I cannot conceive that any answer that you would give would be as
displeasing to us as taking the privilege of the fifth amendment.
Mr. Beck. Senator Mundt, let me answer it this way : I w^ould be
perfectly willing to place my hand on the Bible, under oath, that I
have already in my possession thousands and thousands of telephone
calls, communications, telegrams, at cetera, from the membership of
this great organization, supporting the position that I am taking. If
I am not taking the right position, I will be a candidate for general
president of this international union in September; the membership
of this international union, in convention assembled, will have the
opportunity at that time to either approve or disapprove of my
stewardship of this international union. It is a few short months away.
In the interval of that time, I intend — and I am glad to write into
the record — 1 intend to follow the advice of my legal counsel and the
pfocedure that I am following before this committee.
Senator Muxdt. Mr. Beck, did you use to be a member of the board
of regents of the University of the State of Washington ?
Mr. Beck. I was a member of the board of regents of the State Uni-
vei'sity in Washington, and acted as its chairman; yes.
1664 IMPROPER ACTIVITIES IN THE LABOR FIELD
Senator Muxdt. I remember that, as a former educator, and I
watched with great admiration some of the statements you made at
that time, one which as I recall had to do with college professors
accused of communism who took the fifth amendment. Do you recall
that statement ?
Mr. Beck. I don't recall that particular statement, but for 35 years,
Senator, of my lifetime in the labor movement, I don't think there
is a man in the United States of America, along with my friend here,
Senator McCarthy, who has fought communism harder than I have
fought it.
I disagree with Senator McCarthy on other things, but I agree with
him 100 percent, that he has made a great contribution to our country
in his fight on communism.
Senator Mundt. Mr. Beck, I was in the process of commending
you for some of the statements that you made and wondered if you
recall your stand you then took on witnesses that took the fifth
amendment.
Mr. Beck. I do not remember it. Senator Mundt. I can't possibly
remember it. All I want you to say — disagree with me if you desire.
You may feel that I am erring at this particular time. I want to im-
pose upon you if I can, in your conscience and in your mind, I have
been in this trade union movement for 40 years. I haven't done in my
own mind one single tiling that in the final days in the courts, where
I have the right to face my accusers, the cross-examination and all
the other privileges of the courts, that I will not be able to come out
of it clean and white, 100 percent.
In the interval of time, however, I must follow the advice of my
legal counsel.
Senator Mundt. Mr. Beck, you have had the right to face your
accusers here this afternoon. The accuser is the check which you
signed. The accuser is the testimony that Mr. Shefferman gave about
these various gifts and donations. The accuser is in the face, in the
composition, of your own records. There is no witness coming in here
and making statements here. We are trying to unravel some financial
facts and figures that came out of the record. That is all.
Mr. Beck. Senator Mundt, let me answer you this way : Under our
jurisprudence system, and under the constitutional rights vested in
me and all other citizens, hiring eminent counsel of unquestioned
American citizenship and ability, when they elect in a matter of legal
advice to tell me to exercise the procedure I am following, in my
opinion, in deference to myself, my family, and everyone else, I shall
follow out that advice. And if temporarily, and I am sure it will be
temporarily, if that, in your mind, creates an antagonism toward me,
or in any sense feel that I am not living up to all of the responsibility
of American citizenship, I will have to suffer that.
But I assure you that I am going to follow out the advice of my
counsel.
(At this point, the Chairman and Senator McNamara withdrew
from the hearing room.)
Senator Mundt. Mr. Beck, would you answer this question, on
which your counsel has not briefed you or advised you. This is just
between two of us, now, neither one of whom in any way condones com-
munism. Is my memory in error when I seem to recall that as a mem-
IMPROPER ACTIVITIES IN THE LABOR FIELD 1665
ber of the board of regents of the University of the State of Washing-
ton you spoke out vigorously in denunciation of v^itnesses that took
the fifth amendment?
Mr. Beck. Senator Mundt, I say to you most honestly, the record
is not in front of me, I think the lowest person in the United States of
America, lower than the stomach on a snake, is a Communist. I have
jjreached it and fought it in the arena of the American labor movement
for 40 years. I have never retreated from it, and I don't think there
are 10 'Communists in the teamsters union in the United States of
America. I have fought it under the rule book that they elected to
fight under, any time they ever raised it.
I do not recall ever having made that statement. I may have made
it, and I am not going to deny that. If I did make it, it is in the
record.
Senator Mundt. I thought you had made it and I wanted to con-
gratulate you on having made it.
Mr. Beck. I don't know, sir.
Senator Ives. All right, Mr. Counsel, go ahead.
Mr. Kennedy. "We have some of these records that I want you to
identify either your signature or your writing, Mr. Beck.
Mr. Aj)lerman. Mr.^Beck, I show you exhibit No. 122, which is on
the stationery "From the desk of Dave Beck" in printing, and
addressed to "Nate," reading —
please forward your personal check to Prentice Nursery in the amount of
.$4,534.94 airmail special delivery, Dave.
I will forward you check immediately.
Mr. Kennedy. What is the explanation of that, Mr. Beck?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III
of the Constitution ; further, I decline to answer because I refuse to
give testimony against myself, and invoke the fourth and fifth
amendments; and further because the question is not relevant or
pertinent to the investigation.
Senator Ives. The Chair overrules your objection and direcis you
to answer, with the consent of the committee.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Mr. Beck, in addition to taking your lawyers' advice
on that answer, you also personally feel that a truthful answer to that
(juestion might tend to incriminate you ?
Mr. Beck. It might, yes.
Mr. Adlerman. I have in my hands exhibit No. 123, which is a bill
of Saks Fifth Avenue for the sum of $90.92, addressed to Dave Beck,
bearing the handwritten notation on top, "Nate, please pay this,"
and the initials D. B., which were identified by Mr. Shefferman as the
initials of Mr. Beck. On the bottom is a notation:
Tell them their sox I purchased are terrible. Full of holes.
Mr. Beck. I must decline to answer the question
(The witness conferred with his counsel.)
(At this point, the chairman entered the hearing room.^
Mr. Adlerman. Do you identify this as in your handwriting or as
your signature ?
89380— 57— pt.
1666 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and Illof
the Constitution ; further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments ;
and further because' the question is not relevant or pertinent to the
investigation.
The Chairman. The Chair overrules the objections interposed by
the witness, and his refusal to answer the question, and orders with
the approval of the committee orders, and directs him to answer the
question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. I^NNEDY. You personnally feel that giving a truthful answer
to that question might tend to incriminate you?
Mr. Beck. It might.
Mr. Adlerman. Here is exhibit No. 124, a bill of the Haymarket
Clothing Co., of Boston, Mass., sold to N. W. Shefferman, Chicago, 111.
two special coats at $135 each, $270, ship to Dave Beck, Woodmere
Apartments, 3636 16th Street NW., and I ask you if you can identify
that.
Mr. Kennedy. I want to find out, Mr. Beck, did you purchase at
union expense these two coats ?
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth and fifth amend-
ments ; and further because the question is not relevant or pertinent
to the investigation.
Senator Ives, In view of the chairman's absence from the chair, I
will take the privilege of rejecting your objection and ordering you
to answer.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Senator Ives. You understand, that is with the full consent of the
committee ?
Mr. Beck. Yes, sir. Yes, Senator.
Mr. Kennedy. Mr. Beck, you feel, you personally feel that if you
told this committee whether you purchased two coats with union
funds, that a truthful answer to that question might tend to incrimi-
nate you ?
Mr. Beck. It might.
Mr. Condon. Your Honor, Mr. Chairman, may I ask that you sus-
pend for a moment while I hand you this letter to look at ?
(Document handed to the chairman.)
The Chairman. The Chair will pass this letter to other members of
the committee while we proceed.
Before the Chair makes any statement about it, he would like
for the other members of the committee to become familiar with it.
Mr. Condon. Thank you.
The Chairman. Thank you very much.
Counsel may proceed.
Mr. Kennedy. I would like to pass on from Mr. Shefferman's bills
to the bills regarding your home and Mr. John Lindsay. What has
IMPROPER ACTIVITIES IN THE LABOR FIELD 1667
been your relationship with Mr. John Lindsay, the contractor in
Seattle?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of the
Constitution ; further I decline to answer because I refuse to give testi-
mony against myself and invoke the fourth and fifth amendments; and
further because the question is not relevant or pertinent to the investi-
gation.
Senator McCarthy. Mr. Chairman, may I make a very brief com-
ment ?
I think we are wasting a great deal of time, here. I do not believe
that there is any possibility of getting any evidence from Mr. Beck.
I just wonder if the counsel should not put the figures into the record
and drop it here. We can stay on for days and days. I know that
Mr. Beck's answers will remain the same.
I assume that is right ; is it not, Mr. Beck ?
Mr. Beck. It is. Senator ; yes, sir.
Senator McCarthy. I would suggest we call a halt pretty soon, and
get to our other business.
The Chairman. The Chair will state, as Senator McCarthy knows
and other members of the committee know, that I have just conferred
with them regarding a continuation of this display or performance —
I do not know what else you can call it — and as soon as we complete 1
or 2 matters that should go into the record, the Chair will take appro-
priate action to bring this session to a close.
Does any Senator have any question ?
Senator Goldwater. Mr. Beck, I have just a few short questions in
another area. Do you know John C. Stevenson ?
(The witness conferred with his counsel.)
Mr. Beck. Senator Goldwater, yes ; I do know John C. Stevenson.
Senator Goldwater. "WTio is he ?
Mr. Beck. John C. Stevenson is an attorney now located in southern
California.
Senator Goldwater. How long liave you known him ?
Mr. Beck. I suppose I should be able to answer that easily, but I
can't. My mind is running back. I first knew him when lie was a
county commissioner up in Seattle, Wash. I am trying to remember
whether it was before or after the war. I^et us say, not pinning me
doAvn to the exact years, perhaps 20 years.
Senator Goldwater. Did you ever know him as John C. Stockman ?
Ml". Beck. I never did ; no. Senator.
Senator Goldwater. Did you ever know that he was indicted in
Buffalo, N. Y., on a charge of defrauding clients ?
Mr. Beck. To answer that question truthfully, I would have to say
no; I did not know that, but I have read of that in the newspapers in
Seattle at the time that he was before the press and the public there.
Senator Goldwater. Did the teamsters lend him $25,000 to buy a
home or a ranch ?
(The witness conferred with his counsel.)
The Chairman. Here we go.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under article I, II, and III of the
Constitution; further I decline to answer because I refuse to give
1668 IMPROPER ACTIVITIES IN THE LABOR FIELD
testimony against myself and invoke the fourth and fifth amendments ;
and further because the question is not relevant or pertinent to the
investigation.
The Chairman. The Chair overrules the objection interposed by
the witness and his refusal to answer, and, with the approval of the
committee, orders and directs the witness to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Senator McCarthy. Mr. Chairman, the Chair has passed to mem-
bers of the committee a letter from James Duff. He requests that
this be read into the record. Wliile I have no quarrel with Jim Duff,
he and I have always gotten along very well, as I recall, I do think
that if a lawyer wants to issue a statement, he should issue it from
his own office or come here jiersonally and issue it.
I am not impressed by one statement he makes, and that is that
he feels it would not be proper for him, as a recent Member of the
Senate, to participate before a Senate committee on the opposite side
of matters that may have been under consideration while he was a
Member of the Senate.
He is participating. His name was used 18 times yesterday, and
I do not know how many times today. He is taking part. He is
using his influence, whatever that may be, before this committee.
I think if Senator Duff wants to issue a statement, that it should
be issued by his own office and not by a committee before which he
sees fit not to appear.
So I would strenuously object to the Chair issuing this statement for
him, not that there is anything of any moment in it, but it is just
the principle of the matter.
I am not putting tliat in the form of a motion. Mr. Chairman. If
the Chair would like to read it, I will certainly accede to the Chair
and will not ask for a vote on it.
The Chairman. The Chair has conferred with chief counsel with
i-espect to some other matters that this witness should be interrogated
about. It is anticipated that we will get the same kind of response
that we have been getting. But just so that the ]3ublic will know that
there is more, and yet more, I am going to indulge this session a little
longer so that counsel may ask some of theses very pertinent ques-
tions and let the witness continue to take the fifth amendment.
Mr. Kennedy. Could I just make a preliminary statement about
each one and why I am asking ?
The Chairman. Yes. First, however, with resi>ect to tliis letter,
the Chair will reserve decision on that until we conclude with the
witness.
Proceed.
Mr. Kennedy. Just prior to the time I ask you, INIr. Beck, a ques-
tion, we have more information on the position that you took regard-
ing the fifth amendment of certain professors of Washington Uni-
versity.
He stated at that time when he was on the board of regents,
I have no time for that group of individuals who hide behind every technicality,
and these were professors Avho took the fifth amendment,
technicalities which they would destroy to hide their subversive thinking.
Americans who nre living the American way do not have to hide behind
technicalities.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1669
You were a member of the board of regents at that time in 1949 — is
that correct — of the University of Washington ?
Mr. Beck. I very definitely was a member of the board of regents.
The only thing I would like to ask you is, is it embodied in there that I
used the language fifth amendment or technicalities?
Mr. Kennedy. Technicalities,
Mr. Beck. I wanted to clear that up. That expresses 100 percent
my sentiments towards communism at that time and it is still the
same as it was for 25 years before that.
Mr. Kennedy. This was 5 or 6 professors who were charged wiih
("ommunism, Mr. Beck.
Mr. Beck. I understand it very well.
Mr. Kennedy. They appenred before a congressional committee
and took the fifth amendment. The question Ijefore the board of
regents was whether they should l>e fired because they had taken the
fifth amendment and you made this statement at that time, that vou
felt.
Americans who aro living the American way do not have to hide behind te<'h-
iiicalities,
i-ef erring to those professors.
Mr. Beck, I subscribe 100 percent to what I said in that telegram
or iuformation that you have in front of you and I emphasize again I
personally am following out the advice of counsel
The Chairman. We concede that, you are following the advice of
counsel.
Mr. Beck. All right. That is where it is.
The Chairman, Let the Chair ask you this : Did you make this state-
ment?
Mr. Beck. I do not know whether I made that exact statement or
not.
The Chairman. Do you deny you made it?
Mr. Beck. I do not deny it because I don't know. I atouIH have to
look at the record. I did not know whether I made that st;'.tement or
not. Of course, I don't,
Mr. Kennedy, What position did you take on the professors ? That
they should be retained ?
Mr. Beck. I opposed professors that advocated the philosoph}'' of
communism.
Mr. Kennedy. That is not the question. What position did you
take on professors that took the fifth amendment ?
Mr. Beck. I do not recall whether that was the particular issue or
not. I do not recall that.
Mr. Kennedy. What position did you take on the professors, gen-
erally, then?
Mr. Beck. I have taken the position against professors or anyone
else
Mr. Kennedy. I do not care
Mr. Beck. Let me answer the question.
The Chairman. Just a moment.
Mr. Beck. I am trying to answer it and you internipt me. I doirt
interrupt you.
The Chairman. Just a moment. The Chair is interrupting. I
want to get a little order.
1670 IMPROPER ACTR^ITIES IN THE LABOR FIELD
Ask the question.
Mr. Kennedy. Mr. Beck, I am not asking yon about how you
generally' feel about professors that advocate communism. Wait
a minute. All I am asking you is what position did you take on the
six professors at Washington University ?
Mr. Beck. I voted against those professors.
Mr. Kennedy. Being retained ?
Mr. Beck. Being retained.
Mr. Kennedy. Thank you.
The Chairman. Because they took the fifth amendment ?
Mr. Kennedy. Because they were hiding behind technicalities.
Is that right?
Mr. Beck. Because they were hiding behind technicalities accord-
ing to the information you have there and I do not know whether it
is correct or whether it pertains to the fifth amendment or not.
"Technicalities" is a broad term that can encompass a great deal
more gi'ounds than just the fifth amendment.
The Chairman. Do you know a more effective technicality to hide
behind than the fifth amendment ?
This is serious. Let us have order.
Mr. Beck. My answer to you, Senator, is I am not competent to
answer that question and regardless of what impact it may have on me,
I am exercising the procedure i am following upon advice of legal
counsel.
The Chairman. That is conceded.
Mr. Kennedy. Mr. Chairman, we have information that out of
the $320,000 that Mr. Beck took from the union, $196,000 of it went
to the contractor John Lindsay for working at Mr. Beck's home,
including the building of his swimming pool.
I would like to ask Mr. Beck if that is correct.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments ;
and further, because the question is not relevant or pertinent to the
investigation.
Tiie Chairman. The Chair overrules the objections interposed by
the witness and his refusal to answer, and, with the consent of the
committee, orders and directs the witness to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Mr, Chairman, this takes on particular significance,
the construction Avork that was done on Mr. Beck's home because in
April 1955, the union paid Mr. Beck $163,215 for that same home on
which they had alread}^ done this work including building the swim-
ming pool.
Would you explain that to the committee, Mr. Beck ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further, I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amend-
ments; and furtlier, because the question is not relevant or pertinent
to the investigation.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1671
The Chaikman. The objections interposed by the witness and his
refusal to answer are overruled and the Chair, with the consent of the
committee, orders and directs the witness to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Mr. Chairman, on another matter, we have informa-
tion that Dave Beck purchased 2 lots, 2 properties, that adjoined the
Joint Council Building Association in Seattle; that he purchased
these lots for $39,000 and then sold them to the teamsters union for
$135,000.
The Chairman. Let the Chair ask you to clarify it. Was that i\t a
time when he was an official in the union ?
Mr. Kennedy. That is correct, Mr. Chairman. He purchased the
lots for $39,000 and sold them to the teamsters union for $135,000,
based on the information that we have.
(The witness conferred with his counsel.)
The Chairman. Ask the witness whether he did it.
Mr. I^nnedy. Mr. Beck, do you do that ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution; further, I decline to answer because I refuse to
give testimony against myself and invoke the fourth and fifth amend-
ments; and further, because the question is not relevant or pertinent
to the investigation.
Senator Mundt. Mr. Chairman, I would like to ask Mr. Beck a ques-
tion.
The Chairman. The Chair overrules the objections interposed by
tlie witness and his refusal to answer and, with the consent of the
committee, orders and directs the witness to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
statement.
The Chairman. Senator Mundt ?
Senator Mundt. Mr. Beck, I am intrigued by the last two or three
words that you use in this paper that you keep reading back at us.
Will you read the last clause ? I think it says, it is, "not pertinent to
this inquiry."
Will you read those few words ?
Mr. Beck. And further, because the question is not relevant or
pertinent to the investigation.
Senator Mundt. Let us stick to that. This inquiry is directed to
ascertain whether or not there have been improper activities on the
part of labor officials. Would you agree with me, sir, that if a labor
official, and I am not talking about Dave Beck, but if a high hibor offi-
cial, a general officer, stole money from the labor union or misappro-
priated it for his own funds, would you agree that that would be an
improper activity ?
Mr. Beck. I most certainly would.
Senator Mundt. Therefore, it seems to me that the last part of your
statement, quite apart from whether you are guilty or not— for we
are trying to find out only whether or not those things took place as
far as you were concerned — certainly, the questions with reference
to that must be pertinent or relevant to this inquiry, must they not?
Mr. Beck. My answer to you. Senator Mundt, is the entire Ian-
1672 IMPROPER ACTIVITIES IN THE LABOR FIELD
iriiag-e. It is my counsel's language that I am quoting to you strictly
from his reconnnendations from a legal standpoint.
Senator Muxdt. So we can understand each other, are you telling
me that your particular ansAA-er is what Mr. Duff told you to say in
response to those questions?
Mr. Beck. I didn't hear your question.
Senator Mi^ndt. Are you telling me that this last language that I
am arguing about, this relevancy and pertinency, that you did not in-
ter])ose that into your answer, but you are reading what Mr. Duff
told you to say in response to ([uestions along this line?
Mr. CoxDON. Mr. Chairman ?
Senator Ervin. I think that is invading the confidential relation-
ship of counsel and client.
Senator Mundt. The witness has already vohmteered the facts
that he was responding in response
The CHAER^NrAN. One moment, please.
Senator Ervix. I believe the committee ought not invade the con-
fidential communications betAveen attorney and clients.
Senator Mundt. The witness volunteered this information.
The Chairman. If my colleagues will let the Chair hear the ques-
tion I will be able to rule and vou can appeal from the ruling of the
Chair.
Senator McCarthy. Would the Senator from North Carolina yield
first?
Senator Ervin. Yes.
Senator McCarthy. I would like to call your attention to the fact
that Senator Mundt did not inject this into the question, that it
was the witness who said, "I am reading what my counsel told me to
read." So he has already waived any privileges, I believe.
Senator Ervin. I realize that may be so. However, every per-
son is entitled to counsel and a person is very effectively deprived of
the benefits which he gets by virtue of his right to counsel if inquiry is
made as to what transpired between him and his counsel.
I think that the right of counsel is so essential to the protection of
rights of all citizens and I also think that it is so essential that a per-
son should be allowed to communicate freely with his counsel and his
counsel with him ; that that field ought not to be invaded even if the
witness may take and, in a sense, open the door.
Senator Mundi'. ISIr. Chairman. I have no quarrel with the com-
pletely irrelevant observations of my good friend from North Caro-
lina. It just does not happen to apply in this particular situation.
I was interrogating Mr. Beck along the line of whether or not he
felt questions dealing with the misuse of union funds could conceiv-
ably be irrelevant or lack pertinency in this inquiry because he has
previously told me and he agreed with me that if a general officer in
the labor union were using union funds for himself, that that would
be improper practice.
We had agreed on that. I said, "That being true, how can you pos-
sibly say that a question asked about whether or not you made an im-
proper use of union funds was not pertinent or was irrelevant.*'
Whereupon, on his own volition, he told me that his counsel told him
to answer the question that way.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1673
I said, "Did I understand you correctly when you made that state-
ment?" It was at that point that the Senator from North Carolina
injected himself into the colloquy.
Senator Ervin, Mr. Chairman, I would like to make one observa-
tion in reply to the statements of my good friend from South Dakota
that my observations are not relevant. I think it is relevant at all
times to stand up for a man's rights under the Constitution, and one
of the most fundamental of these rights is the right to benefit of counsel
and that right can only be preserved where the rule is observed so that
there can be free communication between an attorney and clients.
I make this statement, that regardless of whether a person is
guilty or innocent, regardless of what he is charged with, I would
stand up for this same principle in favor of a Communist.
Senator Mundt. I have no quarrel with that statement. I simply
point out that the Senator from South Dakota has no control over
what this witness says or refuses to say. He voluntarily injected that
into his reply when I was trying to find out from him how he could con-
ceivably figure out that these questions were not pertinent and were
not relevant when thej dealt with the subject which he himself has
said was a relevant pomt of inquiry, and that was with regard to the
misappropriation of funds.
The Chairman. Now, if the Chair may have the question, I will try
to rule on it.
Senator Mundt, There is no question, I think, before you, Mr.
Chairman.
The Chairman. If there is no question, let us proceed.
Senator Ives. Mr. Chairman
Senator Mundt. I would like to say, though, in view of the volun-
tary answer which was made by Mr. Beck, as to his reason for trying
to outlaw these questions as being irrelevant or not pertinent to the
inquiry, that then I, too, believe that the letter we received from
Senator Duff should not be made part of the record because certainly
it does not occur to me that a witness should be receiving counsel
in absentia and that the counsel should then communicate with this
committee by way of letters.
The Chairman. The Chair would remind all of his colleagues, and
others interested, that in each instance, the Chair has overruled the
reasons that are posed by the witness for not answering questions, in-
cluding that part of his reason that refers to irrelevancy and non-
pertinency to this inquiry. They have, in each instance, been over-
ruled. I do not know anything further the Chair can do about that.
The witness did open the door to some extent by saying that he be-
lieved that it would be pertinent, as I interpreted his answer it would
be pertinent, if this committee were inquiring into the matter that
Senator Mundt referred to and that is exactly what this committee
is doing and the duty it is charged with.
So the witness stands, by his own answer, in a contradictory position
from the form objection that he reads and the reasons that he gives
in answering the questions and the answer that he gave under oath
to Senator Mundt as to his belief that they would be relevant and
pertinent if applied to someone else.
I think we can let the record stand on that.
Senator Ives. I have a couple of questions, Mr, Chairman, I would
like to ask Mr. Beck.
' O — 57 — pt. 5 12
1674 IMPROPER ACTIVITIES IN THE LABOR FIELD
First, Mr. Beck, do you think it proper for labor organizations to
lend money to companies with which they are engaged in collective
bargaining ?
Mr. CoNix)N. Mr. Chairman, may I ask of Senator Ives ?
Your question is of general purport ; is it not ?
Senator Ives. General purport. It is just a matter of general
policy, general principle I am asking about.
Mr. Condon. Would you repeat the question ?
Senator Ives. Yes. Do you think it proper for labor organizations
to lend money to companies with which they are engaged in collective
bargaining ?
Mr. Beck. Senator, I want to answer that question. I don't think
I can answer that yes or no. I don't think I can do it.
Senator Ives. Answer it anyway you want to, I just want to get
your philosophy.
Mr. Beck. Well, Senator, I, myself, as chairman of the finance
committee of our International Brotherhood of Teamsters, loaned $11/2
million to the Fruehauf Corp. that was repaid in 14 months. They em-
ploy some of our teamsters, not very many, and the loan was made
because in my judgment, it was a contribution of a financial nature,
sound in an investment structure, to a great employing corporation
that needed assistance that at that particular moment did not have a
credit rating good enough, under existing conditions to get it at the
banks or through the bonding houses or insurance companies.
In other instances, I would say thai; exercising the keen judgment
that you should have when you invest the moneys of the organization,
weighing all factors considered, I think there is times when you should
not loan it, and it is for that reason that I say to you that I don't think
you give a yes or no answer.
Senator Ives. In other words, you think it depends upon the exi-
gency of the moment ?
Mr. Beck. The circumstances, yes.
Senator Ives. Thank you. Do you believe it proper for union
officials to have personal business relationships with insurance brokers
who invest union funds or pension or welfare funds?
I think you know what I mean by that.
Mr. Condon. May I ask a question of Senator Ives ? This question.
Senator, I take it is also one of general scope?
Senator Ives. General policy. I am not trying to trap Mr. Beck.
Mr. Condon. I was sure of that. Senator.
The Chairman. Let the Chair point out something, gentlemen, this
will be for the benefit of the witness.
If the witness goes to answer general questions, it will be as to his
belief, his judgment, and his policy. He will open the door.
If you want it open, open it. I will be glad to have it open.
Mr. Beck. Can I answer the chairman this way? I do not want
to open the door, and I emphasize that I am a layman and not a legal
mind. I have enough confidence, regardless of any disagreement that
may exist between us, that no member of this committee would take
advantage of the fact that I do not possess legal knowledge and im-
pose upon it.
The Chairman. We all know that. Proceed.
Senator Ives. I will tell Mr. Beck, I am not trying to trap him.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1675
Do you want to answer that question ?
Mr. Beck. I don't think you are, sir.
The Chairman. Let us answer the question or refuse.
(The witness conferred with his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III
The Chairman. Consider it read. The Chair overrules it. It can
be incorporated into the record just as it has been read here before.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. The Chair overrules it. It will be printed in the
record in full at this point.
I am trying to expedite this to a conclusion.
The Chair, with the approval of the committee, orders and directs
the witness to answer the question.
(The witness conferred with his counsel.)
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman, Proceed.
Senator McCarthy.
Senator McCarthy. Do you have money deposited in any European
banks ?
Mr. Beck. I do not, no, Senator McCarthy.
Senator McCarthy. You do not ?
Mr. Beck. I do not. Not 5 cents.
Senator McCarthy. Thank you.
Senator Goldwater. May I ask one question ?
The Chairman. Senator Goldwater.
Senator Goldwater. Continuing Senator Ives' question, do you
believe that tax-free organizations should pay taxes on any earned
income from the organization funds ?
(The witness conferred with his counsel.)
Senator Goldwater. Let me tie it down. You loaned Freuhauf a
million dollars. They paid you interest on it. You earned money on
tax-free money. Do you feel it would be right for us to consider
legislation which would allow the Federal Government and the State
governments to tax that earned income ?
Mr. Beck. I have no objection to answering that question, as my
judgment dictates, if I have the assurance of the committee I am not
opening the door.
The Chairman. The committee will give you no assurances.
Mr. Beck. Then, I must decline to answer the question because this
committee lacks jurisdiction or authority
The Chairman. All right. Consider it read. It is overruled.
You are ordered and directed to answer the question.
Mr. Beck. I decline, to answer on the grounds stated in my last
answer.
Senator Goldwater. Mr. Beck, out of these hearings — not these
particular ones, exclusively, but out of the entire series of hearings —
tliere will undoubtedly come some legislation.
This could possibly be one of the points of legislation. I am not
trying to trap you. I am trying to get some information, over and
1676 IMPROPER ACTIVITIES IN THE LABOR FIELD
above what we have been trying to get from you, that will enable us
to act intelligently on labor legislation when the time comes to do it.
It seems to me that you could answer that question. It is not going
to incriminate you.
Mr. Beck. Can I put it this way : I do not desire to open the door,
but I will be very happy to meet with you in your offices or anywhere
else after this committee has released me and I am not under oath, and
go into a general discussion of the subject matter and give you all of
my opinion as I honestly believe it.
Senator Goldwater. Would you meet with me and discuss the right-
to- work question on the same basis ?
Mr. Beck. I will meet with you, Senator Goldwater, and discuss
anything that you can bring up, hoping that in a small measure I may
contribute something to your knowledge of it in any way, shape or
manner.
Senator Goldwater. I hope that I can contribute something to your
knowledge of it.
Mr. Beck. I am sure you can.
The Chairman. Counsel, proceed.
Mr. Kennedy. Mr. Chairman, on Mr. Beck's answers on the Freu-
hauf , which he answered, it was of particular interest.
I was wondering if after the teamsters union, through you, loaned
$1.5 million to the Freuhauf Trailer Co., did you receive any moneys,
directly, you, personally, Mr. Dave Beck receive any moneys, directly
or indirectly, from the Freuhauf people?
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments ;
and further because the question is not relevant or pertinent to the
investigation.
The Chairman. The objections interposed by the witness are over-
ruled. His refusal to answer is overruled.
"With the consent of the committee, he is ordered and directed to
answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Tell me if this is true, that in March 1954 you came
under income-tax investigation ; that you found then that you were in
difficulty because of the fact that you had taken some $320,000 from
the union, so that you went to Fruehauf and asked them to give you
some money so that you could stick it back into the treasury; that
you arranged through Fruehauf to loan or borrow $200,000, and that
you gave that money to the union in August of 1954 ?
Would you tell me if that is true ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the 4th and 5th amendments;
and further because the question is not relevant or pertinent to the
investigation.
(At this point. Senator Goldwateer withdrew from the hearing
room.)
IMPROPER ACTIVITIES IN THE LABOR FIELD 1677
The Chairman. The Chair overrules the objections interposed by
the witness and his refusal to answer, and, with the consent of the
committee, orders and directs the witness to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Let me ask you this : Was it true that the Fruehauf
Co. was unable to raise the money themselves so that they went to
Brown Equipment Co., a trucking company, and they secured for you
4 checks amounting to $50,000 apiece, that you took those 4 checks in
1954 and deposited them in the B. & B. Investment Co., and then
from the B. & B. Investment Co. you gave a check for $200,000 to
the union ?
The Chairman. Identify B. & B. Investment Co.
Mr. Kennedy. B. & B. Investment Co. is one of Mr. Dave Beck's
companies in Seattle, Wash.
Here are the four checks.
The Chairman. The clerk will present to the witness four photo-
static checks for his examination and identification.
(Documents handed to witness.)
(The witness conferred with his counsel. )
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution ; further I decline to answer because I refuse to give
testimony against myself, and invoke the 4th and 5th amendments;
and further because the question is not relevant or pertinent to the
investigation.
The Chairman. The checks will be made exhibit — they bear his
signature, do they ?
The checks will be made an exhibit for reference.
The witness' refusal to answer and the objections he has interposed
will be overruled. With the consent of the committee, he is ordered
and directed to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. The checks will be made exhibit No. 130 for
reference.
(The document referred to was marked "Exhibit No. 130" for ref-
erence and will be found in the appendix on pp. 1722-1725.)
Mr. Kennedy. Mr. Chairman, as I stated, in March 1954 was the
interview Mr. Beck had with the Internal Re,venue Department. He
was then unable to tell exactly how much he had taken from the union.
So he sent the $200,000 in in August of 1954 and signed an agreement
with the union at that time that the $200,000 would be a downpayment
on account and that the rest of the money would be repaid at a later
day, when they could determine, by tracing Mr. Dave Beck's use of
the union funds, how much money he had taken from the union
treasury. I want to ask him if that is a correct recitation of the facts.
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority
The Chairman. All right. Consider it all read. Insert it into the
record at this point.
The Chair will overrule the objections interposed by the witness,
and his refusal to answer, and, with the consent of the committee,
orders and directs him to answer the question.
1678 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Mr. Kennedy. Mr. Chairman, let me also ask Mr. Beck if it is not
true that the Brown Equipment Co. was not being repaid as quickly
as they expected to be, so that then Mr. Dave Beck had to go around
to try to find a way to raise some new money. He then found the idea
or had the idea of selling his house to the union, which, of course, the
union had paid for originally, or at least a part of it, and also selling
the furniture, which the union had paid for, through Mr. Nathan
Shefferman. He came up with that idea of selling the house to the
union, to raise the money and repay the loan to the Brown Equipment
Co.
Is that a correct recitation of the facts ?
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution
The Chairman. All right. Consider the statement read, the
objections read.
The Chair overrules the objections interposed by the witness, and
his refusal to answer, and orders and directs him to answer the ques-
tion, with the consent of the committee.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. The Chair presents to you a check in the amount
of $163,215, dated April 7, 1955, check No! 186, drawn on the Ameri-
can Security & Trust Co., signed by Dave Beck, as president, and
John F. English, general secretary and treasurer, and drawn on the
International Brotherhood of Teamsters, Chauffeurs, and so forth.
The Chair asks you to examine the check and state whether or not
you identify it, and if your signature appears thereon.
(Document handed witness.)
(The witness consulted with his counsel.)
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution
The Chairman. All right. Consider your objections fully stated,
the same as they have been before.
The Chair overrules your objections, and your refusal to answer,
and, with the consent of the committee, orders and directs you to
answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
Senator McCarthy. Mr. Chairman, could I make a suggestion?
That is, that counsel give a resume of the balance of the questions he
intends to ask. We know what the answer will be. It is getting late,
and we all have a lot of work to do in our office.
The Chairman. The Chair wishes to make this statement. We have
a witness here that is refusing to answer, and who is hiding behind
the fifth amendment. The only reason I have continued is to let the
country know, let the teamsters of this country know, the character
of transactions that have transpired, about which this witness is un-
willing to make disclosures under oath. For that reason, I have in-
dulged the interrogation to this point.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1679
Senator McCarthy. I had in mind, Mr, Chairman, that counsel
would read at this time, here in public, a resume of the rest of the
type of cliecks and financial transactions, and make them part of the
record. We know what the answer will be.
The Chairman. The check just presented will be made exhibit No.
181.
(Tlie document referred to was marked "Exhibit No. 131" for ref-
erence and will be found in the appendix on p. 1726.)
The (vHAiRMAN. Mr. Counsel, if you can sum up a number of them,
let us do so in order to expedite the hearings. I am convinced that we
will continue to get the same resistance and lack of cooperation in the
committee's efforts to discharge its duties and carry out its assignment.
If we can in any way expedite it, let us try to do so.
Mr. Kennedy. Mr. Chairman, Mr. Dave Beck and the union, after
this first accord was reached in December 1954, in which Mr. Beck
paid the $200,000 — he paid it in August 1954 — this accord was
reached, that he should pay more after they found out how much
he owed, there was another accord reached and it was found he should
pay another $50,000. Since that time he has repaid $20,000, making
a total of $270,000 that he has restored. When he made the accord
in December 1954, he stated that his accountants and attorneys had
already sj^ent over 700 hours on the books and records to try to de-
termine how much money he had taken from the union.
The Chairman. Who made that statement ?
Mr. Kennedy. Dave Beck.
The Chairman. Go ahead and recite the facts.
Mr. Condon. Mr. Chairman, I didn't follow that. Who said what
to whom t
Mr. Kennedy. I will read you from the second paragi*aph. It is
a letter signed "Yours very truly, Dave Beck," December 30, 1954. It
is addressed to the Joint
Mr. ('oNDON. I just wanted to know to whom is the letter supposed
to be written ?
Mr. Kennedy. Joint Council 28, Building Association and West-
ern Conference of Teamsters.
Mr. Condon. I understand.
The Chairman. This purports to be Mr. Beck's statement over his
signature.
(The witness consulted with his counsel.)
The Chairman. We will give him a chance to see it.
Mr. Kennedy. It says:
Today my attorneys and said accounting firm have advised me, after spending
over 700 hours in examining my books and records and other sources of infor-
mation, i^ertaining to my financial affairs, that to the best of their judgment
and belief they liave determined that the total amount due you as of December .31,
195.3, amounts to .$250,000.
Is there any question about that?
So Mr. Beck
The Chairman. Ask Mr. Beck if he wrote the letter.
Senator Mundt. Your client will be given a chance to deny that
letter, Mr. Condon, if he wants to.
I will ask him : Did you write that letter?
1680 IMPROPER ACTIVITIES IN THE LABOR FIELD
Mr. Beck. I must decline to answer the question, because this com-
mittee lacks jurisdiction or authority under articles I, II, and III, of
the Constitution; further, I decline to answer because I refuse to
give testimony against myself, and invoke the fourth and fifth amend-
ments ; and further, because the question is not relevant or pertinent
to the investigation.
The Chairman. The Chair overrules the objection and the refusal
of the witness to answer, and, with the consent of the committee, orders
and directs the witness to answer.
As I do so, I present to you the letter, a photostatic copy of it, and
ask you to look at it and see if the reading of it was not correct.
(Document handed witness.)
(The witness consulted with his counsel.)
Senator Mundt. Does counsel for Mr. Beck have any further ob-
jections now to the introduction of the evidence ?
Mr. Condon. I made no objection. I asked for some information.
Senator Mundt. Is it complete and clear now that you have the let-
ter in your possession ?
Mr. Condon. It is.
Senator Mundt, So if you care to advise your client to answer it, it
would be helpful to the committee.
Mr. Condon. He has already answered that he declines to answer.
Senator Mundt. He declines to answer?
Mr. Condon. He declines to answer. That is what I understood.
Mr. Bbx:k. I must decline to answer the question
The Chairman. Consider your objections interposed as heretofore,
and the Chair overrules them, and, with the consent of the committee,
orders and directs you to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. The letter will be made exhibit No. 132.
(The document referred to was marked "Exhibit No. Ie32" for
reference and will be found in the appendix on pp. 1727-2728.)
The Chairman The Chair presents to you an accord and satisfac-
tion agreement, signed by Frank Brewster and yourself, and others
representing the Western Conference of Teamsters and Joint Council
28 Building Association, dated July 7, 1954. I will ask you to examine
in that agreement and accord and see if you signed that.
(Document handed to witness.)
(The witness consulted with his counsel.)
Mr. Beck. I must decline to answer the question
The Chairman. Consider your objections interposed as heretofore,
and the Chair overrules them, and, with the consent of the committee,
orders and directs you to answer.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. That will be made exhibit No. 133.
(The document referred to was marked "Exhibit No. 133" for
reference and will be found in the appendix on pp. 1729-1930.)
The Chairman. The Chair presents you another letter dated Decem-
ber 29, 1955, signed Dave Beck and addressed to Joint Council 28
Building Association and Western Conference of Teamsters. I ask
you to examine that letter and see if you signed it.
IMPROPER ACTIVITIES IN THE LABOR FIELD 1681
(Document handed witness.)
(The witness consulted his counsel.)
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of
the Constitution
The Chairman. All ri^ht, consider your objections interposed, and
the Chair overrules the objections. With the consent of the committee,
the Chair orders and directs you to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. The letter will be made exhibit No. 134.
(The document referred to was marked "Exhibit No. 134" for
reference and will be found in the appendix on p. 1731.)
Mr. Kennedy. That, Mr. Chairman, about summarizes the evidence
on the reimbursing to the union, the restitution of the $270,000.
The Chairman. I think our records show there is still about $50,000
missing.
Mr. Kennedy. Well, that explains the $270,000 that he has given
back so far, and these accords and satisfactions are agreements that
have been signed with the union. Our records show that Mr. Beck
took approximately $320,000 from the union. We have one other
matter that is of considerable importance in view of Mr. Beck's answers
to questions yesterday that I w^ould like to spend a minute on, if I may.
The Chairman. Proceed.
Mr. Kennedy. In answer to your question, Mr, Chairman, he stated
that the financial records of the International Union showing its re-
ceipts and its disbursements would reflect the loans made to him.
I want to ask you, Mr. Beck, for the explanation of this check.
It is the public relations account. That is the same public relations
account, payable, $5,629, to the public relations account in Los An-
geles, which we have discussed before.
The Chairman. Is this the same amount that was then paid to Mr.
Shefferman ?
Mr. Kennedy. To Mr. Shefferman. It was withdrawn from the
public relations account shortly afterward and then given to Mr.
Nathan Shefferman.
The Chairman. The Chair presents to you the check to w^hich
counsel has referred, dated October 9, 1953, public relations division,
in the amount of $5,629, signed by John English, general secretary
and treasurer, of the International Brotherhood of Teamsters, together
with a note attached, which I will read : It is on stationery showing
"from the desk of Dave Beck, reimbursed authorized expense."
"Bill, send check in amount of $5,629 payable to public relations
division. Mail to Ray I^heny, personal, 846 South Union Avenue,
Los Angeles."
I may say that the writing appears to be in your hand.
I will ask you to examine both the check and note and determine
whether you identify them.
(Document handed witness.)
Mr. Beck. I must decline to answer that question because this com-
mittee lacks jurisdiction or authority under articles I, II, and III of the
Constitution and further I decline to answer because I refuse to give
testimony against myself and invoke the fourth and fifth amendments.
1682 IMPROPER ACTIVITIES IN THE LABOR FIELD
and further, because the question is not relevant or pertinent to the
investigation.
The Chairman. All right, Mr. Beck, the objections are overruled
and your refusal to answer is overruled and with the consent of the
committee the Chair orders and directs you to answer the question.
Mr. Beck. I decline to answer on the grounds stated in my last
answer.
The Chairman. Now, I am going to read from your record of yes-
terday and then ask you another question. I read this as a premise
for the question I am going to ask you.
This is your testimony on yesterday :
The Chairman. This publication that you said that carries this information
as to financial reports showing the financial status of the International Union,
showing its receipts and disbursements, would such a statment reflect loans
made to you or loans made to other officers of the union, or money that they
may have taken out of the treasury?
Mr. Beck. Of the International Union, you are asking now?
The Chairman. Yes.
Mr. Beck. It most certainly would.
The Chairman. They would reflect it?
Mr. Beck. Yes.
The Chairman. Now, Mr. Beck, I w^ant to ask you if what has been
presented to you there and which you now have in front of you is
not a part of the record of the International Union of Teamsters?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II and III, of
the Constitution.
The Chairman. You are refusing, are you, to answer whether you
recognize that as a part of the records of the teamsters, that you tes-
tified yesterday would reflect it ?
Mr. Beck. I must decline to answer the question because this com-
mittee lacks jurisdiction or authority under articles I, II and III of the
Constitution and further I decline to answer because I refuse to give
testimony against myself, and invoke the fourth amendment and fifth
amendment and further, because the question is not relevant or perti-
nent to the investigation.
The Chairman. The Chair overrules the objection and your re-
fusal to answer holds that by reason of the answer you gave yester-
day, you waived the right to refuse to answer and to invoke the fifth
amendment. Therefore, the Chair orders and directs you to answer
the question.
Mr. Beck. I decline to answer on the ground stated in my last
answer.
Mr. Kennedy. Mr. Chairman, I might say that that money was
deposited in this "Special account, public relations," in Los Angeles
and shortly, within several days, was withdrawn and deposited in the
jjank account of Mr. Nathan Shefferman and was part of the $85,000
of union funds that Mr. Shefferman used to pay Mr. Dave Beck's
personal bills.
The Chairman. All right. That check and the document attached
to it will be made exhibit No. 135.
(The document referred to was marked "Exhibit No. 135" for
reference and will be found in the appendix on pp. 1732-1734.)
Mr. Kennedy. I want to read this again. It is to reimburse author-
ized expense, and it is, "Send check in the amount of $5,629, payable
IMPROPER ACTIVITIES IN THE LABOR FIELD 1683
to public-relations division, mail to Ray Leheny, personal," and Mr.
Beck said at that time it was to reimburse authorized expense.
The Chairman. Thank you. Is there anything further ? Is there
anything further, Mr. Counsel ?
Now, orentlemen, we have before us the problem about the letter
from Senator Duff. There has been some discussion about it. The
Chair will entertain a motion either to place it in the record or with-
hold it.
Senator McCarthy. Mr. Chairman, I would suggest that in view
of the fact that this is representation in absentia, we take this up at
executive session, and that any decision be withheld at this time.
The Chairman. Is there any objection to the request?
Senator Ives. Rather than get into a controversy over the matter
here in public, I think it would be well to take it up in executive
session.
The Chairman. The letter will be received and placed in the file
and taken up at the next executive session the committee has.
Are there any further questions ?
The Chairman. The Chair wishes to make a brief statement.
I said earlier that there are times when patience ceases to be a virtue.
We have labored here diligently for the last few days, and, in fact, for
the past month, trying to carry out our assignment and perform the
duties with which this committee is charged.
We have encountered, as those who have had the opportunity to
witness will readily agree, very difficult circumstances, reluctant wit-
nesses, fifth- amendment witnesses, and probably others who testified,
testify falsely.
It is a demonstration of the arduous labors that this committee and
its staff is going to have to put forth and the expense that this Gov-
ernment today is being put to and caused to expend because of the
lack of cooperation and in some respects lack of good citizenship and
proper moral standards which are causing us to have to do this labor
and expend this money.
It had been hoped that when Mr. Beck appeared before this com-
mittee he would be a cooperative witness, that he would come in a
spirit of trying to assist and aid the committee in performing its func-
tions and rendering the service to the Government that it is his duty
to render.
Unfortunately and unhappily, that has not been the case. It did
not materialize in that way. This witness in my opinion has shown
utter contempt for this committee,, for the Congress of the United
States, and for his Government.
Whether that contempt is actionable or not, I am not at the moment
prepared to say, but this committee will give consideration to the
question of whether it is actionable.
If it is found to be, I have no doubt what the judgment and action
of the committee will be. Mr. Beck has shown flagrant disregard
and disrespect for honest and reputable unionism and for the best
interests and welfare of the laboring people of his country.
Above all, he has shown arrogant contempt for the million and a
half members, the honest laboring people in the teamsters union.
Since he is so anxious to get into court, it is my sincere hope that in
due time the witness will be judged accordingly.
1684 IMPROPER ACTIVITIES IN THE LABOR FIELD
Now, I regret that proper propriety and common decency dictates
that I should not spread here on the record any further substance of
my opinion.
The witness is excused, subject to continuing under subpena and to
be recalled and returned if and when the committee desires further
testimony from him upon reasonable notice being given.
Do you accept that recognizance ?
Mr. Beck. Definitely, Mr. Chairman, and I would like to ask you
one question.
The Chairman, Does the attorney accept for him, also ?
Mr. Condon. Yes.
The Chairman. You may ask me one question.
Mr. Beck. Because of illness at home, I would like to return imme-
diately to the west coast. Can you give me some idea of how long
it would be before I would be needed ?
The Chairman. That request is granted but I cannot at this time
indicate to the witness when his presence may again be required. But
you may return to the west coast.
Mr. Beck. It would not be within the next few days ?
The Chairman. I do not think so.
Mr. Beck. Thank you.
The Chairman. The committee stands in recess, subject to the call
of the Chair.
(Whereupon, a recess, subject to the call of the Chair, was taken
at 5: 05 p. m.)
(Present at the taking of the recess were Senators McClellan, Ives,
Ervin, McCarthy, and Mundt.)
APPENDIX
EXHIBITS
Exhibit No. 117
1685
1686 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 118
••••••••••
IMPROPER ACTIVITIES IN THE LABOR FIELD
P]XHIBIT No. 119
1687
1688 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 119— Continued
^6'
BAVE BECK
yts^u^ '
'''A \
P^r^ • Jz
IMPROPER ACTIVITIES IN THE LABOR FIELD 1689
Exhibit No. 120A
I. YOlh
\t\! '
I I ).
89330 O— 57— pt. 5 -13
lS"*? way
^J
1690 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 120B
%* . ^ V).
IMPROPER ACTIVITIES IN THE LABOR FIELD 1691
Exhibit No. 120C
STATEMENT
Seattle, Wash.
T. YOI^^^' '
. O.
Msintenanc*. by i:h» !»«> or .jy tht Monifa
WE SUPPLY FERTTtllER AND MANURE
SHKHaS AND Hl-OWERS
I-Ogan 770
Previous
T542S rEBAJElSi WJkY
If any error found in this siaternent. we wij! giadly iionre-c-'
1692 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 120C — Continued
DAVi BECK
C6
AUV
IMPROPER ACTIVITIES IN THE LABOR FIELD 1693
Exhibit No. 120D
n-
STATEMftWT
Seattle, Wash., SEP-a0.1952 19
T. YOROZl (lARDENING CO.
jLutxdiSixfit M>eiiijnei &" i.onixaztox
M*iBto«wn br t]M D«y or by tk* MmiOi
WE SUPPtY FERTILIZEK AND MANURE
SHRUBS AND FLOWERS
PHONE PRD£liSte»r ^200
LOgwi 7700
Pi-evious Balance
13335 - 32NO AVE. SO.
^3
f-^
/fi^"^^'
If any error found in thas statement, we v.ii: " au.y orrect it.
1694 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 1200— Continued
-U
M^v
lUVE BECK
^..4
A.. A J
<-'^Q'^
^-^A4^
>il
IMPROPER ACTIVITIES IN THE LABOR FIELD 1695
Exhibit No. 121
•TATIMCNT
f1
PRENTICE
Nurtery ( Decorating Co.
fHONI RAINlEi Qt4}
#352 EAST MAtOiNAl WAT
> SIAHie I, VHmUHOJOH
/^^^i^ <LA;k4^>^
%/^]ij.Jtr>-
r~
T^ .
^gM)
^50 Jl
2«/?
^i
tuimtt
PRElTICf
^
tAUiU^L^
II.
JZtmi: CASH OW OCtlVtRH
TM* fc • tana w^v Mtf •>•< w
1696 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 122
Ww ^pAA^ JLjL^^
IMPROPER ACTIVITIES IN THE LABOR FIELD 1697
Exhibit No. 123
1698 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 124
o
u
o
o
1
u
<
<
IMPROPER ACTIVITIES IN THE LABOR FIELD 1699
Exhibit No. 125
DAVE BEf K
1700 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 125 — Continued
ItUY
23
■"™r
ACCOUNT BlNDCKtD
1 CRaVmT
2 CR«V«TS
6 UNDERSHIRTS
8 50
15 OP
9 00
7 50
2:1 TO
30 00
54 00
^^?^
^, • ^ 1
62 50
54 50
/ /
^^ ^idha '^- Com|MUuj'
OATt ^»I0
IMPROPER ACTIVITIES IN THE LABOR FIELD 1701
Exhibit No. 126A
SAMPLES OF ITEMS PURCHASED FOI^ DAVE BECK
BY NATHAN SHEPFERMAN WITH TEAMSTTO UNION FUNDS
Shirts
$ 217.30
2 Coldspots and 2 radios
926 80
Golf baUs
S** 00
Golf clubs
129 00
Nylons - white
35 52
2 silk shirts
39-18
sheets and cases - Beodix washer
U13.50
2 dozen sheets
72.00
5 shirts
23.76
2 white silk shirts
3U.OO
h football tickets
lU.40
21 pair nylons
25 20
5 dozen diapers
9.68
2 cases shells
6U.00
Watch for golf clubs
26.77
Hose
I2J+.OO
Shells
61.50
1 dozen sheets
18. 2U
Beodix
235.00
Diapers
15.00
White hose
ll.kQ
Royal typewriter
132.10
Jayson shirts
175.33
1702 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 126A — Continued
Hathaway shirts
56.68
Sear's type outboards
1^^9-31
Johnson outboard
157-50
Shaveioasters
k6 Uo
Radio cojnbination
216.25
Hoover vacuum
99-04
Hotel - New York
75.82
Shoes 8e shirts - Seattle bunch
57.50
5 i HP motor
1UU.15
Coldspot freezer 19'
266.66
Automatic washer
166. U9
6 pr Kheedrawers
27.54
1 bow tie
3.50
Kaiser roofing sheet
1U31.27
Custcasmede tie
lU.oo
12 prs "Magna" Binoculars
354.00
Chairs, table, loveseats,
settee, etc.
12U2.45
iJuapB, tables, chow bench,
smoke, etc.
245.50
Sulka ties and shirts
192.65-
2 coats
303.60
Rugs from Strausa-Rose Carpet Corp.
1 Cheviot
1 Friezette
1 Renaissance
571.99
672.07
991.19
1 puBDp to be used on sprinkling unit
242.40
1 chestnut diilan
Gravy boat, cruet set, bie
273.00
tcuit box
124.00
IMPROPER ACTIVITIES IN THE LABOR FIELD 1703
PJXHiBiT No. 126 A — Continued
TV set $ 371-95
Gardening 1918.15
SAMPLES CF ITEMS PURCHASED FOR DAVE BECK, JR.
BY mmm shefpb21man wi-m teamsier union funds:
Washing machine 85. 50
20' Deep Freeze 250. 90
Automatic Deluxe Washer 1U2.82
2 aluminum boats 196.5O
Model 70 - 30.06 gun 73-10
Vacuum cleaner 57-00
Chestnut living room 979-50
3 mattresses and 3 springs 222.69
The total of pvirchases for Dave Beck and Dave Beck, Jr.
by Nathan Shefferman vith Union ftmds is over $85,000
for the years 19^9 through 1953-
1704 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 126B
JR.
Washing Machine $ 85. $0
20 ' Deep Freeze 250. 90
Automatic Deluxe Washer ♦ 1^2. 82
2 Aluminum Boats 196. 50
Model 70 - 30.06 Gun 73.10
Vacuum cleaner 57. 00
Chestnut living room 979. 50
3 ffcittresses and 3 springs. 222. 69
20" TV 324.40
One 1-HP G. E. Ccmrpressor $217.00
One i-HP Currier Compressor 125.00
One |-HP G. E. Compressor less motor IO6.OO
448.00
2i> sales tax 8.96 456. 96
11 Axles for ccaapresBors. 340. ^
Motor ^1978 ■ 17-74
Submersible sump pump, Fairbanks Morse 56. 64
Camera Equipment 590. 91
2 lenses 107. 37
Tools, etc 215.54
Tools, etc 13.14
Tools, etc 22.61
Washer l84. 62
Thing a ma jig for the camiera 2. 31
TV set 218.99
Camera Case 32.83
TOTAL $4,592.37
IMPROPER ACTIVITIES IN THE LABOR FIELD 1705
Exhibit No. 128A
.^.
/
^se-
'• Vrf*
O— 57— pt. 5-
1706 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128B
^^^^^
>«•;•••:••;
»•••,••/•••
•••*••*•••
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128C
1707
1708 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128D
^;
"^
V-"!*
0-
1^
X
I—
on
<
X
IMPROPER ACTIVITIES IN THE LABOR FIELD 1709
Exhibit No. 128E
1710 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128F
->^:
^5^
/^iA^
2452
«f M*TTJJt. W*?M
THF
2452
;i,
•••!••'•••
-••-••••,••,
**«I«««!**I
•••*•••••••
• ••:•
«••:•••!••:
••••«••-••••
•••i«*I«««
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128G
1711
It.**
^-^ /W^^^^x^
• •••♦•••J
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1712 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128H
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 1281
1713
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1714 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128J
IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128K
1715
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1716 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128L
IMPROPER ACTIVITIES EST THE LABOR FIELD
Exhibit No. 128M
1717
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1718 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128N
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1719
Exhibit No. 1280
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HOTEL ACCOUNT OF
MONTE CAR^O HOTEL INC.
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1720 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 128P
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EXHIBIT No. 129
1721
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1722 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 130
IMPROPER ACTIVITIES IN THE LABOR FIELD 1723
Exhibit No. 130 — Continued
• • • •
1724 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 130— Continued
IMPROPER ACTIVITIES IN THE LABOR FIELD 1725
Exhibit No. 130— Continued
1726 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 131
s'.. -^ uRANCH
IMPROPER ACTIVITIES IN THE LABOR FIELD 1727
Exhibit No. 132
December 30, 1954
Joint Council 26, Building Association, and
Western Conference of Teamsters
^t!2 Denny
Seattle, Washington
Gentlemen:
Reference is made to that certain written Accord and
Satisfaction Agreement which we entered into on July 7, 195^
whereby In payment to you of the sum of $200,000.00 by me, I
was given a complete settlement and discharge of any and all
indebtedness as of December 31, 1953 to either or both of you.
At that time said Accord amd Satisfaction Agreement was based
upon the premises that the recoi*ds of each of us were not in
sufficient detail to, among other things, adequately detennine
the exact amounts due from me to you as of December 31. 19^3.
axid that the sum of $200,000.00 was the best estimate that we
could determine as of that date as to the amounts due from me
to you.
Since that time I authorized n^ attorneys to employ
certified public accountants to make an independent audit of
my financial affairs from 1942 through December 31, 1953, to
ascertain, in so doing, the amounts due you as of December 3I,
1953. Today my attorneys and said accounting firm have advised
me, after spending over 700 hours in examining my books and
records and other sources of information pertaining to my
financial affairs, that to the best of their Judgmeht and ability j
they have determined that the total amount due you as of December
31, 1953 amounts to $250,000.00.
As it was always the understanding between you and me
that all amounts advanced by you for my account should be fully
repaid, I hereby offer to amend the said Accord and Satisfaction
Agreement in the following respects:
1. TtOLt the amount of money to be paid to you be
increased froia $200,000.00 to $250,000.00, payable as
follows: $200,000.00 In cash as of July 7, 1954, and
the balance, to-wit, $50,000.00, in cash on or before
December 31, 1955, said balance to be evidenced by a
promissory note which I have executed and enclose here-
with.
2. In the event that my accountants above named,
and such accountants of your selection. Jointly determine
within one year from date hereof that the balance due you
1728 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 132 — Continued
Joint Council 2o, Building ABSoclatlor.
and Western Conference of Teamsters
December 30, 195^
Page 2
as of December 31. li^t)3 Is more or less than tr,
$250,000.00, there will be a corresponding ad„ .
made between us.
If the foregoing arrangement is satl:
of you, will you please signify your accf-pta/.;
of this letter and return the same tc
Your a
Dave Beck
Accepted and agreed to this ^ / day of
JOINT 3PUNC1L
By_
ASSOCIATION
ATTEST:
WESTERN- CONFERENCE OF TEAMSTERS
By r^/t,a<^AJ^h^A^,j/^^
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1729
EXHIBIT No. 133
ACCORD AID SA-nSFACTIOH AORCTMBT
TRI8 kOnmmt of accord AKD SAnsrACriOl Mde sad cntsFAd
lato Uiia Tth d«7 of Jmly, 1951».* by uul b«t»«0n JOirr OHTVCIL 28
BUItDim ASSOCIAZIOX, » Mrporation, uMl WBSTSnr CONFBKElKrS OF
'flBUBTMBIt an iu»iji«*rporat«d volant«r7 •••eelatlon, h*r«lnatftfr
•ftlXcd *Flnt PartlM*, and MVB BKCX, of Soattla, Wuhli^toii,
lM»r«la«ft«r eallad "SaeMid Party* «
lilil&iil! t
WBOaaua, nnt Partlaa, Iwt^ ladiTiAaally and Jointly ha^a
ovar a papio4 af yaara adTaneod fanda in ▼arious aaounta at
dlffaraat tlaaa to faaand Party; a part of aaid adraacea balng
■ada for aaa toy Baaond Party for tlia banaflt of vn* or both of tha
Flrat Partlaa, and tha x>aaaindar aa a laaa and far tha bokafit af
8aaea4 Party; and
WBBOUS, tiM beoka and raeordtt af all partiaa ara not in
toffieiant datail (1) to elaarly and adaquataly dlatincalah ba-
%«aan fttnda adTaaead far th» banafit of First PArtiaa and tliaaa
advanead aa loaaa for tha baaafit of SaaaM Party aad (2) to «a-
tarMaa tha axaat aaount daa froa Saa«n4 r«rty ta Flrat Fartlaa,
aa of DaaaitfBar 31. 1953; aad
VHXRXA8* Saeond Party la daalroua of aakinx a final aattl*-
■aat of hia iodabtadaaaa to Firat Partiaa aad baa offarad to
fortfaaith pay to Firat Partiaa tha aua of T»o londrad Thouaaad
Dellara (#200.000.00) in eaah. providing that a foil aeoerd and
aatiafaetion la raaehad bataaaa tha partiaa harata with raapaat ta
tha iodabtadaaaa of tha Saaand Party to tha Flrat Partiaa up ta
and iaaadiac DaeaatMr 31. 195H and
WaamMM, Firat Partiaa daa* it ta thair boat intaraat ta
aaeapt aaeh offar aa ttia tanai aiM aaaidltlena h^iaaf«ar aat fortl^
■OW, THJHtSFOllBt ia eooaldaratlMi af tha iMtaMa eovaaattta
harala aontaiaad, aai far oUmt gaai mt valaabla e«aaiter«ktlaa.
1730 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 133 — Continued
tb« parties do ButualXj eeT*iuuit and agr«« aa follow t
1. Saoood Party aliall pay to tlM Joint ordar of Firat
rartiaa tha sua of T«o Hondrad Thouamd Dallars {|2(K),M0«00)
in lavfvl aKMBa>ya of tJaa tfhitad Statas upon axaeution «f thia
•grawMsat.
2. nrat Partia* hmrrnhf agraa Jointly and aavaMlly %a
aeaapt tba aaid |200,000«00 p«9«bla to thair Joint oMar in
fall, final and aaaplata aattlaaant and diacharga of any and all
indabtadnaaa, ap to and isalodiag Daeaabar 31. 1953* of 8«eend
Farty to aithar or 1»»th «f Flrat Partlaa.
Ill WITVBSS WHBtXOF tha partias herato hava axaautad thia
Aeaord and Satisfaction Agraaaant the day and year firat abova
«ritt«B.
^i«T eotniciL 28 Bwiuxns Assoeimoi
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IMPROPER ACTIVITIES IN THE LABOR FIELD 1731
Exhibit No. 134
Joint Coonoil 26, WulMli^ AawMlation, maA
w»«t«ni CmktTmnam of fMUMtors
^5t DMiV
SMttla, tra«hlagt«n
0>ptl— nt
ItofuwMM la Mkto %o tiMit MHrtaJUi «rltt«B Ae«or<l
•ndi latliifiMitlffR Agr<n—nt Mbitli wt «Bt«rMl into on Jialy 7,
1954, •i#Md t«r tlw mOmrmi^mA mA MO«pt«<l Iqr yoa.
•r tiM AMAutlcn of this Uttor m ths spMo h»re-
inbolow proyj iti. pwragfapb niiiitrid a in s»id Uttor of
P»H— nr 30, 19M* !• horolqr ^ antiMa •griMwnfr of aU of
QM, tmtmdnA to fwMl as foUowsi
"In tlM •wot tlMit m aottountants abort mmmi
and sttsh ao oo w t a n ta of itMr salootlon* Jointlir
tfotonOno witHia aH^stssn (18) aantlM fras data haroof
th*t tiM taOsMo duB yon as ^ ttnaafcar 1X« 1953 la
■ora or tosa tHan ttia aald $250,000.00, timrm mil ba
a oarraapondtng adjutataant aada b a tw a an us."
Za all otiiar ff«S9«ats mlA Aooord and Satlafbaticn
A cr t — ant mm asMndad br MkiA latbar itfuswHt of Paattir 90^
1954, la in fuU foraa ant affbat.
If tiM f off a gning ■ ■ ■ mit ii nt U antlafbatonr to a«^
Mm you plaaaa ai«ili> wmup aaoaftinoa an tiia dupll
Hila lattar mnA f%mm tlia aana to as tot ngr fllaa.
of you,
aata of
Dava la«t^
Ao u a p ta i aa« asrood to tlila ._^_
jQXjff OQCMcxi. ae wmimm kasocwncm
Afimi
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1732 IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 135
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IMPROPER ACTIVITIES IN THE LABOR FIELD
Exhibit No. 135 — Continued
1733
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1734 IMPROPER ACTIVITIES IN THE LABOR FIELD
EXHIBIT No. 135 — Continued
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