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Full text of "Investigation of improper activities in the labor or management field. Hearings before the Select Committee on Improper Activities in the Labor or Management Field"

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INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



HEARINGS 

BEFORE THE 

SELECT COMMITTEE 

ON IMPfiOPEE ACTIVITIES IN THE 

LABOR OR MANAGEMENT FIELD 

EIGHTY-FIFTH CONGKESS 

FIRST SESSION 
PURSUANT TO SENATE RESOLUTION 74, 85TH CONGRESS 



JULY 17, 18, 19, 22, 23, 25, AND 26, 1957 



PART 9 



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 IMPROPER ACTIVITIES IN THE 

LABOR OR MANAGEMENT FIELD 

EIGHTY-FIFTH CONGRESS 

FIRST SESSION 
PURSUANT TO SENATE RESOLUTION 74, 85TH CONGRESS 



JULY 17, 18, 19, 22, 23, 25, AND 26, 1957 



PART 9 



Printed for the use of the Select Committee on Improper Activities in the 
Labor or Management Field 




UNITED STATES 
GOVERNMENT PRINTING OFFICE 
89330 WASHINGTON : 1957 



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prs. 



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Boston Public Library 
SuperintoTT^nnt 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 KARL E. MUNDT, South Dakota 

SAM J. ERVIN, JE., North Carolina BARRY GOLDWATER, Arizona 

PAT McNAMARA, Michigan CARL T. CURTIS, Nebraska 

KOBEET F. Kennedy, Chief Counsel 
Ruth Yoonq Watt, Chief Clerk 

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CONTENTS 



United Textile Workers of America 

Page 

Appendix 3511 

Testimony of — 

Altimont, Alfred A 3223 

Calabrese, Alphonse F 3229, 3259, 3309, 3316, 3449, 3479 

Callaghan, Aileen 3226 

Cunningham, Mark L 3318 

Emerson, Charles 3419 

Fisher, John W 3468 

Henig, Morton E 3275, 3373, 3479 

Jacobs, Joseph 3366, 3376, 3399 

Jansson, Eric G 3317 

Klenert, Lloyd 3267, 3275, 3287, 3311, 3462, 3472, 3503 

Krause, Frank A., Jr 3312 

Lynham, Richard L 3498 

Meanv, George 3347 

Mills, "^ Ralph W 3470 

Quigley, Martin J 3231, 3339 

Valente, Anthony F 3429, 3450 

Yudelevit, Louis 3468 

EXHIBITS 

Introduced Appears 
on page on page 

1. BeitzeU Realtor Sales contract dated April 4, 1952, 

Washington. D. C, referring to property at 3507 Saul 
Road and 9801 Alfred Ray Road, Rock Creek Hill, 
Montgomery County, Md., in which acknowledgment 
is made of receipt of $2,000; purchaser Evelyn M. 
Nolan and sellers Alfred A. Altimont and Albert J. 
Altimont 3224 3511- 

2. Check of Mutual Title Co., dated May 6, 1952, payable to 3512 

Albert J. and Alfred A. Altimont m the amount of 

$51,515.46 3225 3513 

3. Deposit slip from Security Bank, Washington, D. C, 

showing 2 $1,000 checks deposited to J. Garrett Beitzell, 

special account, dated April 7, 1952 3228 3514 

4. Check dated April 4, 1952, payable to Beitzell in the 

amount of $1,000 and signed by Anthony Valente 3228 3515 

5. Deposit slip from Security Bank, Washington, D. C, 

showing $3,050.90 deposited to J. Garrett Beitzell, May 

6, 1952 3229 3516 

6. Check from Mutual Title Co. dated May 6, 1952, payable 

to J. Garrett Beitzell in the amount of $3,000 (Kfenert 

and Valente) 3229 3517 

7. Deposit slip of Washington Loan & Trust Co., Washington, 

D. C, dated May 2, 1952, to the account of Mutual 
Title Co., trustee account, in the amount of $120,606.51, 
on which is shown deposit of $95,000, United Textile 
Workers of America 3235 3518— 

8. Sellers statement on Mutual Title Co. letterhead, settle- 3519 

ment of the sale by Altimont to Klenert and Valente, 

dated May 5, 1952 ___ 3237 3520 

9. Purchase statement of Lloyd Klenert on Mutual Title Co. 

letterhead, dated May 5, 1952, showing purchase of lot 
1, block 18, Rock Creek Hills, in the amount of $52,500-- 3237 3521 

in 



IV CONTENTS 

Introduced Appears 
on page on page 

10. Purchase statement of Anthony Valente on Mutual Title 

Co. letterhead, dated INIay 5, 1952, showing purchase of 
parcel A, block 18, Rock Creek Hills, in the amount of 
$42,500 3237 3522 

11. Five check stubs which relate to Klenert and Valent 

transaction, Nos. 6957, 6058, 6059, 6060, and 6061 3239 3523- 

12. Letter dated IVIay 14, 1952, addressed to Martin Quigley, 3524 

Mutual Title Co., from Llo5'd Klenert, international 
Secretary-treasurer 3243 (**) 

13. Letter dated May 15, 1952, from Mutual Title Co. to Mr. 

Lloyd Klenert, secretary-treasurer. Textile Workers of 

America 1 3246 (*) 

14. Check No. 6229, dated May 15, 1952, from Mutual Title 

Co., payable to United Textile Workers of America in the 

amount of $95,000 (Klenert and Valente) 3246 3525 

15. Letter dated May 15, 1952, addressed to United Textile 

Workers of America, re lot 1, block 18, and parcel Rock 
Creek Hills, and signed by Martin J. Quiglev, president, 
Mutual Title Co ' 3251 (**) 

16A. New York Bank draft No. 51119, dated INIay 15, 1952, pur- 
chased from Liberty National Bank, payable to Lloyd 
Klenert in the amount of $7,000 3254 3526 

16B. New York Bank draft No. 51120, dated May 15, 1952, pur- 
chased from Liberty National Bank, payable to Lloyd 
Klenert, in the amount of $7,000. . _ ^ . . /. 3254 3527 

16C. New York Bank draft No. 51117, dated May 15, 1952, pur- 
chased from Liberty National Bank, pa5-abie to Lloyd 
Klener in the amount of $8,000 3254 3528 

16D. New York Bank draft No. 51118 dated May 15, 1952, pur- 
chased from Liberty National Bank, payable to Lloyd 
Klenert in the amount of $5,000 ' 3254 3529 

17A. Cashiers check on the City Bank dated May 14, 1952, 

payable to Anthony Valente in the amount of $10,000.. 3255 3530 

17B. Cashiers check on the City Bank dated May 14, 1952, pay- 
able to Anthony Valente in the amount of $7,000 3255 3531 

17C. Cashiers check on the City Bank dated May 14, 1952, pay- 
able to Anthony Valente in the amount of $13,000 3255 3532 

18. Second Deed of Trust for $15,000 on Klenert property 

dated May 15, 1952, executed by Lloj^d Klenert and wife 

Eleanor Klenert in favor of Laida A. Kreuz 3256 (*) 

19. Note dated May 15, 1952, in the amount of $10,000 on 

Valente property 3256 3533- 

20. Abstract of minutes of the meeting of the Executive 3535 

Council, United Textile Workers of America, Sherry 

Frontenac Hotel, Miami Beach, Fla., April 25, 1952... 3260 3536 

21. United Textile Workers of America loan application for 

$100,000 dated May 8, 1952, from Liberty National 

Bank 3262 3537 

22. Certification by the president of the union, Anthony 

Valente, stating he had authority to make the loan from 

Liberty National Bank 3262 3538 

23. Application card, deposit slip, and ledger card of the 

Liberty National Bank, account in the name of United 
Textile Workers of America showing deposit of $100,000 
and withdrawals 3266 3539- 

24. Supplement to audit report of United Textile workers of 3540 

America for 3 months ending June 1952 as submitted by 

Eric G. Jansson, C. P. A 3266 3541 

24A. Letter from Eric G. Jansson to Lloyd Klenert dated Sep- 
tember 8, 1952, transmitting 4 copies of supplemental 
( data to audit report 3338 3542 

24B. Letter from Eric G. Jansson to International Executive 
Board, United Textile Workers, dated September 8, 
1952, with explanatory comments re supplement 3338 3543 

25. Minutes of a meeting of the Executive Council, United 

Textile Workers of America, Blue Room, Hotel Hamil- 
ton, Washington, D. C, April 25 and 26, 1956 3275 (*) 



CONTENTS -f 

Introduced Appears 
on page on page 

26A. Cashier's check No. 57384 on the City Bank dated June 
16, 1952, payable to Lloyd Klenert in the amount of 
$1,000 3309 3544 

26B. Cashier's check No. 57385 on the Citv Bank dated June 16, 

1962, payable to L.loyd Klenert in the amount of $1,000_ 3309 3545 

26C. Cashier's check No. 57386 on the City Bank dated June 
16, 1952, payable to Lloyd Klenert in the amount of 
$1,000 3309 3546 

27A. Cashier's check No. 57382 on the Citv Bank dated June 16, 

1952, payable to Lloj^d Klenert in the amount of $1,000_ 3309 3547 

27B. Cashier's check Xo. 57383 on the City Bank dated June 16, 

1952, payable to Lloyd Klenert in the amount of $1,000. 3309 3548 

28. Sales shp from Campbell 'Music Co., Inc., Washington, 

dated June 18, 1952, indicating Magnavox TV set sold to 

Lloyd Klenert at a net cost of $685.40 3311 3549 

29. Sales slip from Campbell Music Co., Inc., Washington 

D. C, dated June 18, 1952, indicating Steinwav grand 

piano sold to Lloyd Klenert at a net cost of $2,786.50. _ . 3311 3550 

30. Original contract ^s"o. 5605 with Washington Gas Light 

Company of Maryland to install air-conditioning at 3507 
Saul Road, Rock Creek Hills and signed by Anthony 
Valente ■_ 3314 (*) 

31. Replacement contract No. 5607 with Washington Gas 

Light Company of Maryland to install air-conditioning 
at 3507 Saul Road, Rock Creek Hills, signed by Anthony 
Valente 3314 3551- 

32. Replacement contract No. 5609 with Washington Gas 3552 

Light Company of Maryland to install air-conditioning 
at 9801 Alfred Ray Road, Rock Creek Hills, and signed 
by Lloyd Klenert-' 3315 3553- 

33. Audit report of United Textile Workers of America, Apr. 1, 3554 

1952, to June 30, 1952, made by Eric G. Jansson, C. P. A. 3322 (*) 

34. Eric G. Jansson memorandum of call from the office of the 

United Textile Workers of America requesting conference 

with Mr. Valente and Mr. Klenert 3323 3555 

35. Eric G. Jansson subsequent memorandum of call from 

Lloyd Klenert and Anthonj^ Valente for another con- 
ference 3323 3556 

36. Affidavit, dated July 1952, prepared by Eric Jansson for 

the signature of the President of the UTWA and the 
secretary-treasurer of the UTWA 3324 (*) 

37. Receipt for original affidavit picked up by employee of 

United Textile Workers of America, from office of Eric 

G. Jansson on Aug. 29, 1952 3324 3557 

38. Amended audit report of United Textile Workers of Amer- 

ica, Apr. 1, 1952, to June 30, 1952, submitted bv Eric G. 

Jansson, C. P. A "_ 3328 (*) 

39. Comments from Eric G. Jansson, dated Aug. 28, 1952, 

that accompanied the amended report 3329 3558- 

40. Audit report of United Textile Workers of America, dated 3559 

Aug. 28, 1952, for the period Apr. 1, 1952, to June 30, 

1952, submitted by Eric C. Jansson, C. P. A 3336 (*) 

41. Letter dated Aug. 25, 1952, to Martin Quigley, Mutual 

Title Co., from Llovd Klenert, secretary-treasurer, 

United Textile Workers of America 3339 (**) 

42. Letter dated Aug. 26, 1952, to Lloyd Klenert, secretary- 

treasurer, United Textile Workers of America, from 

Martin J. Quigley, Mutual Title Co 3339 (**) 

43. Check No. 6956 dated Aug. 26, 1952, payable to United 

Textile Workers of America from Mutual Title Co. in 

the amount of $57,000 3340 3560 

44. Check dated Aug. 27, 1952, payable to Martin J. 

Quigley, in the amount of $666.67, signed by John 

Fisher 3343 3561 

45. Deposit slip from the Washington Loan & Trust Co., to 

account of Mutual Title Co., trustee account, dated 

Aug. 26, 1952, showing deposits of $60,100 3345 3562 



VI 



CONTENTS 



Introduced Appears 
on page on page 

46A. United Textile Workers of America balance sheet, dated 
Mar. 1952, submitted to George Meany, secretary- 
treasurer of AFL 3349 (*) 

46B. United Textile Workers of America balance sheet, dated 
Apr. 1952, submitted to George Meany, secretary- 
treasurer of AFL __ 3349 (*) 

460. United Textile Workers of America balance sheet, dated 
May 1952, submitted to George Meany, secretary- 
treasurer of AFL 3349 (*) 

46D. United Textile Workers of America balance sheet dated 
June 1952, submitted to George Meany, secretary- 
treasurer of AFL 3349 (*) 

46E. United Textile Workers of America balance sheet, dated 
Julv 1952, submitted to George Meany, secretary- 
treasurer of AFL 3349 (*) 

47. Letter dated January 28, 1953, to Mr. George Meany, 

president, American Federation of Labor with attached 
United Textile Workers of America subcommittee report 
on investigation of Klenert and Valente 3353 3563- 

48. Letter dated February 19, 1953, addressed to Mr. Anthony 3568 

Valente, president. United Textile Workers of America, 
signed bj' George Meany, president, American Federa- 
tion of Labor 3353 3569— 

49. Contract "automobile lease," dated July 1, 1955, signed by 3570 

Joseph Jacobs as Lessor, Auto Leasing Co., and Lloyd 

Klenert, lessee, L^nited Textile Workers of America 3370 (*) 

50A. Letter from O. W. Biggs, National Truck Rental Co., dated 
i - June 18, 1957, to Mr. Robert Kennedy re car rentals___ 3376 3571 

50B. Letter from Hubert Ryan, the Hertz Corp., dated June 19, 

t 1957 to Mr. Robert Kennedy re car rentals 3376 3572 

50C. Letter from Charles Hutman, Capito Driv-Ur-Self System, 
dated June 17, 1957, to Mr. Robert Kennedy re car 
rentals 3376 3573 

51 A. Letter dated January 2, 1957, addressed to Auto Leasing 
Co., from Lloyd Klenert, enclosing check No. 58992 in 
the amount of $300 3386 3574- 

51B. Letter dated January 21, 1957, addressed to Lloyd Klenert, 3575 

secretary-treasurer. United Textile Workers of America, 
from Auto Leasing Co., and check No. 59231, payable to 
Auto Leading Co., in the amount of $200, signed by 
by Lloyd Klenert 3386 357&- 

51C. Letter dated January 28, 1957, addressed to Lloyd Klenert, 3577 

secretary-treasurer. United Textile Workers of America, 
from Auto Leasing Co., and check No. 8, payable to Auto 
Leasing Co., signed by Lloyd Klenert 3386 3578- 

51D. Letter dated February 26, 1957, addressed to Lloyd 3579 

Klenert, secretary-treasurer. United Textile Workers of 
America, from Auto Leasing Co., and check No. 353 in 
the amount of $1,022, payable at Auto Leasing Co., and 
signed by Lloyd Klenert 3386 3580- 

52A. Expense voucher and check No. 55434, dated February 17, 3581 

1956, payable to Joseph Jacobs and signed by Lloyd 
Klenert, secretary-treasurer, United Textile Workers of 
of America, in the amount of $217.43 (expenses, Melrose 
Hosiery, High Point, N. C.) 3397 3582- 

52B. Expense voucher and check No. 55435, dated February 17, 3583 
1956, payable to Joseph Jacobs and signed by Lloyd 
Klenert, secretary-treasurer. United Textile Workers of 
America, in the amount of $637.29 (expenses, Enka Low- 
lands) 3397 3584- 

52C. Expense voucher and check No. 55436, dated February 17, 3585 

1956, payable to Joseph Jacobs and signed by Lloyd 
Klenert, secretary-treasurer, United Textile Workers of 
America, in the amount of $487.18 (expenses. United 

Piece, Charleston, S. C.) 3397 3586- 

3587 



CONTENTS Vn 

Introduced Appears 
on page on page 

52D. Expense voucher and check No. 55437, dated November 17, 
1956, payable to Joseph Jacobs and signed by Lloyd 
Klenert, secretary-treasurer, United Textile Workers of 
America, in the amount of $159.82 (expenses, Carolina 

Narrow Fabrics, Winston-Salem, S. C.) 3397 3588- 

63. Check No. 5213, dated August 29, 1952, payable to Leshe 3589 

Shomo in the amount of $5,000 from National Publish- 
ing Co. and endorsed credit account of Lloyd Klenert. _ 3464 3590 

54. Seven deposit slips showing Lloyd Klenert deposited with 

Manufactures Trust Co. $30,150 between September 10, 

1952, and January 16, 1953 3477 (*) 

55. Canceled checks of the United Textile Workers of America 

payable to Acme Theatre Ticket Service in the amount 
of $9,355.60 and list of shows for which tickets were 
purchased for Lloyd Klenert 3489 (*) 

56. Canceled checks of the United Textile Workers of America 

payable to Puchter Theatre Ticket Service in the amount 

of $2,030.35, for Lloyd Klenert 3489 (*) 

57. Hotel Hamilton, Washington, D. C, bills and canceled 

checks of the United Textile Workers of America in 

the amount of $19,431.41, for Lloyd Klenert 3494 (*) 

58. Bills from Camalier and Buckley, Chevy Chase, Md., for 

various articles in the amount of $2,003 paid by United 
Textile Workers of America through Diners' Club credit 
card for Lloyd Klenert 3495 (*) 

59. Bills paid by United Textile Workers of American through 

the use of Trip-Charge, Inc., credit card and canceled 

checks in the amount of $1,776 for Lloyd Klenert 3497 (*) 

Proceedings of — 

July 17, 1957 _ 3221 

July 18, 1957 3259 

July 19, 1957 3287 

July 22, 1957 3347 

July 23, 1957 3399 

July 25, 1957 3429 

July 26, 1957 3479 



*May be found in the files of the select committee. 
•*May be found in the printed record. 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



WEDNESDAY, JULY 17, 1957 

United States Senate, 
Select Committee on Improper Activities 

IN THE Labor or Management Field, 

Washington^ D. G. 

The select committee met at 2 : 30 p. m., pursuant to Senate Reso- 
lution 74, agreed to January 30, 1957, in the caucus room, Senate Office 
Building, Senator John L. McClellan (chairman of the select commit- 
tee) presiding. 

Present: Senator John L, McClellan, Democrat, Arkansas; Senator 
John F. Kennedy, Democrat, Massachusetts; Senator Barry Gold- 
water, Republican, Arizona; Senator Karl E. Mundt, Republican, 
South Dakota ; Senator Carl T. Curtis, Republican, Nebraska. 

Also present: Robert F. Kennedy, chief counsel to the select com- 
mittee; Ralph Mills, assistant counsel; Morton E. Henig, investiga- 
tor; Alphonse F. Calabrese, investigator; Ruth Young Watt, chief 
clerk. 

(Members present at the convening of the session: Senators Mc- 
Clellan and Golclwater.) 

The Chairman. The committee will come to order. 

The Chair will make a preliminary statement as we begin the hear- 
ings in a new phase and in a new area, and related to new or different 
unions in the inquiry that this committee is conducting. 

I would suggest to members of the press if you have a copy of this 
printed statement the Chair is about to make that you follow the read- 
ing of it closely. There have been some minor changes in the copy 
that you have. 

This committee, under Resolution 74 of the 85th Congress, has been 
directed to conduct an investigation of the extent to which improper 
practices exist in the field of labor-management relations and to de- 
termine whether any changes are required in the laws to protect the in- 
terests of labor, of management, or of the public in this area. 

The committee, in hearings beginning today, intends to look into al- 
legations that Anthony Valente and Lloyd Klenert, president and sec- 
retary-treasurer, respectively, of the United Textile Workers of Amer- 
ica, misappropriated union funds to purchase private homes. It has 
been represented to the committee that Mr. Klenert and Mr. Valente 
took steps to return this money only after their misuse of these union 
funds had been discovered by George Meany, then secretary -treasurer 
of the AFL. To make these repayments, there may be evidence that 
Mr. Klenert and Mr. Valente approached officers of companies that 
have contracts with their union. 

3221 



3222 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The committee will also inquire into whether Mr. Klenert with 
union fimds in excess of $40,000 made large numbers of personal 
purchases for himself, liis family and his friends. 

If these facts are true, it is, of course, of much concern to this com- 
mittee. But what causes even greater concern is the evident lack of 
any check or balance on the activities of these officials by the failure 
of the executive board to meet its responsibilities. The executive board 
members and the trustees, if they become aware of the misuse of union 
funds and take no action, are violating their responsibilities to and 
the trust reposed in them by the membership. We will seek, in this 
series of committee hearings, to determine what legislation is necessary 
to insure that the rank and file members of the union may exercise 
proper control over their affairs and compel a fair and proper account- 
ing for their union dues. 

Is there anything further ? 

Senator Goldwater. Mr. Chairman ? 

The Chairman. Senator Goldwater. 

Senator Goldwater. I would like to ask the counsel relative to this 
portion of your statement, and I read from it. 

It was represented that Mr. Klenert and Mr. Valente took steps to return this 
money only after their misuse of these union funds had been discovered by 
George Meany, then secretary-treasurer of the AFL. 

Could the chief counsel tell me approximately when Mr. Meany made 
this discovery ? 

Mr. ICennedy. Approximately in August of 1952, Senator, some- 
time during that period of time starting from May of 1952 through the 
end of the year, or October 1952. 

Senator Goldwater. Do you know, Mr. Kennedy, if Mr. Meany 
took any steps to see that these funds were replaced ? 

Mr. Kennedy. He took some steps in connection with this. 

Senator Goldwater. Are Mr. Valente and Mr. Klenert still the 
officers that are represented here, president and secretary-treasurer of 
the United Textile Workers? 

Mr. Kennedy. Yes, they are. 

Senator Goldwater. Do you know if Mr. Meany, in view of the 
fact that in February, I believe, of this year, the code of ethical prac- 
tices was put into being by the AFL-CIO, has taken any steps to re- 
move these men from their offices in this union ? 

Mr. Ejennedy. It is expected that Mr. Meany will testify at this 
hearing. Senator, and I expect that he can answer any questions better 
than I could. 

Senator Goldwater. But you know of no steps having been taken to 
apply the code of ethics ? 

Mr. KJENNEDY. I do not. 

Senator Goldwater. Mr. Chairman, the reason I ask that is that I 
have not heard of it either, and because the code of ethical practices 
was so widely and well received when it came out, I am a little bit 
surprised to learn that no steps had been taken to apply this code in 
this case. 

I might say in connection with this that there have been 10 of vari- 
ous degrees of importance of the UAW who have taken either the 
fifth amendment or the first amendment, and to my knowledge only 2 
of these have been removed from office or removed from their position 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3223 

of responsibility with tliis union. So I will look forward to the chance 
to inquire of Mr. Meany whether this code of ethics means anything 
or whether it is merely a smokescreen. 

The Chairman, The Chair may state for Senator Goldwater, and 
for the information of others, that Mr. Meany has been requested to 
appear next Monday to testify before this committee. We hope to 
have the facts developed at that time. 

Is there anything further? 

If not, call the first witness. 

(Members present at this point: Senators McClellan and Gold- 
water.) 

The Chairman. Will you be sworn? 

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

Mr. Altimont. I do. 

TESTIMONY OF ALFRED A. AITIMONT 

The Chairsian. Please state your name, your place of residence, 
and your business or occupation. 

(At this point, Senator Mundt entered the hearing room.) 

Mr. AiTiMONT. Alfred A. Altimont, 6904 Strathmore Street. I am 
a contractor. 

The Chairman. What kind of contracting business are you in ? 

Mr. Altimont. General contracting. 

The Chairman. General contracting? 

Mr. Altimont. Yes, sir. 

The Chairman. How long have you been in that business? 

Mr. Altimont. About 7 years. 

The Chairman. Are you familiar with the rules of the committee 
which permit you to have counsel present if you desire while you 
testify? 

Mr. Altimont. Yes. 

The Chairman. Do you waive counsel? 

Mr. Altimont. Yes. 

The Chairman. All right, Mr. Kennedy, you may proceed. 

Mr. Kennedy. Mr. Altimont, you and your brother have been build- 
ing homes since approximately 1950, is that right? 

Mr. Altimont. Correct. 

Mr. Kennedy. Did you build certain homes that were ultimately 
sold to Mr. Anthon}^ Valente and Mr. Lloyd Klenert ? 

Mr. Altimont. Correct. 

Mr. Kennedy. That was in April of 1952? 

Mr. Altimont. Yes. 

Mr. Kennedy. Did you sell those homes outright to Mr. Valente and 
Mr. Klenert? 

Mr. Altimont. No. It was through the Beitzell real estate agency. 

Mr. Kennedy. Through Beitzell l 

Mr. Altimont. Yes. 

Mr. Kennedy. Who was listed as the buyer of those homes ? 

Mr. Altimont. Well, actually, when you deal with real estate people 
like that, the buyers and the sellers usually don't get together. We 
dealt with Nolan Parker, an agent of Beitzell. 



3224 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. You dealt with -whom? 

Mr. Altimont. Nolan Parker. 

Mr. Kennedy. Parker Nolan, do you mean ? 

Mr. Altimont. Parker Nolan. 

Mr. Kennedy. Parker Nolan? 

Mr. Altimont. Yes. 

Mr. Kennedy. So you sold those homes through Parker Nolan, is 
that right? 

Mr. Altimont. Well, through him. As I say, usually a real estate 
agent will not let the buyer's name be known to the builder. 

Mr. Kennedy. You did not know the buyer's name in this case ? 

Mr. Altimont. No. 

Mr. Ejennedy. Mr. Chairman, could Mr. Altimont identify that 
document ? 

The Chairjvian. The Chair presents to you what purports to be a 
photostatic copy of a contract dated here in Washington, D. C, on 
April 4, 1952, referring to certain property at 3507 feaul Koad and 
9801 Alfred Ray Road, Rock Creek Hills, Montgomery County, Md., 
in which acknowledgement is made of receipt of some $2,000 from 
Evelyn M. Noland. Will you examine it and see if you identify it as 
a photostatic copy ? 

(Document handed to witness) 

Mr. Altimont. That is it, yes. 

The Chairman. What is that ? 

Mr. Altimont. That is a sales contract. 

The Chairman. I beg your pardon ? 

Mr. Altimont. A sales contract. 

The Chairman. A sales contract for that property ? 

Mr. Altimont. Yes, sir. 

The Chairman. Who signed the sales contract ? 

Mr. Altimont. Evelyn M. Nolan as purchaser and Alfred A. Alti- 
mont and Albert J. Altimont as sellers. 

The Chairman. That is you and your brother ? 

Mr. Altimont. Correct. 

The Chairman. That may be made exhibit 1, for reference. 

(The document referred to was marked '"Exhibit 1" for reference 
and will be found in the appendix on pp. 3511-3512.) 

Mr. Kennedy. There was a deposit made of $2,000, is that right? 

Mr. Altimont. Correct. 

Mr. Kennedy. And the property was identified as 3507 Saul Road 
and 9801 Alfred Ray Road, Rock Creek Hills, Montgomery County, 
Md., is that right? 

Mr. Altimont. Yes. 

Mr. Kennedy. They were two separate homes ? 

Mr. Altimont. Correct. 

Mr. Kennedy. The total purchase price was how much ? 

Mr. Altimont. Ninety-five. 

Mr. Kennedy. $95,000, is thai right, for the 2 homes? 

Mr. Altimont. Yes. 

Mr. Kennedy. The purchaser agreed to pay $57,000, is that right ? 

(At this point, Senator Curtis entered the hearing room.) 

Mr, Altimont. There was a construction loan on the two houses. 
I think we used up the sum of $38,000 on the two combined. 



IMPROPER ACTIVITIES m THE LABOR FIELD 3225 

Mr. Kennedy. There were two trusts on the homes, is that right? 

Mr. Alttmont. Correct. 

Mr. Kennedy. One amounting to $18,000 and the other amounting 
to $20,000? 

Mr. Aetimont. Correct. 

Mr. Kennedy. So adding those two together, the difference was 
$57,000, is that right ? 

Mr. Altimont. Correct. 

Mr. Kennedy. The settlement charges. So the purchasers agreed 
to pay — this is of some importance to us and I want to be sure — the 
purchasers agreed to pay $57,000 and assume or pay off the two mort- 
gages of $18,000 and $20,000, is that right ? 

Mr. Altimont. Correct. 

Mr. Kennedy. And the seller agreed to pay to J. Garrett Beitzell, 
agent, a commission of $5,000 ? 

Mr. Altimont. Correct. 

Mr. Kennedy. You received subsequent to that a check for the sale 
of those homes, is that right ? 

Mr. Altimont. Correct. 

The Chairman. The Chair hands you what purports to be a photo- 
static copy of a check dated May 6, 1 believe, 1952, apparently payable 
to you and your brother in the amount of $51,515.46, signed or given 
by Mutual Title Co., trustee account, signed by the vice president and 
treasurer of that company. 

Will you examine it and state if you identify it as a photostatic 
copy of the check you and your brother received on this transaction? 

(Document handed to witness.) 

Mr. Altimont. That is correct. 

The Chairman. That is correct? 

Mr. Altimont. Yes. 

The Chairman. That may be made exhibit No. 2. 

(The document referred to was marked "Exhibit No. 2'' for refer- 
ence and will be found in the appendix on p. 3513.) 

The Chairman. It may be copied in the record. 

Mr. Kennedy. Who was the Mutual Title Co ? 

Mr. Altimont. It was a title company. It was the first time I 
dealt with them. 

Mr. Kennedy. I don't want you to identify them, but what was 
their connection with this transaction ? 

Mr. Altimont. They make settlement. 

Mr. Kennedy. They make the settlements ? 

Mr. Altimont. Yes. 

Mr. Kennedy. You received the settlement from them ? 

Mr. Altimont. From them. 

Mr. Kennedy. It was their check for $51,515.46 that you received 
from them ? 

Mr. Altimont. Yes; that is right. 

Mr. Kennedy. And that is all that you had to do with this trans- 
action ? 

Mr. Ai.timont. That is correct. 

Mr. Kennedy. Thank you. 

The Chairman. Are there any other questions ? 

If there are no further questions, thank you very much. 

Senator Mundt ? 



3226 iMPROPEK ACTivrnES in the labor field 



Senator Mundt. At the time you got the $53,000 check 

Mr. Altimont. Fifty-one. 

Senator Mundt. The $51,000 check, to whom did you think the 
house had been sold at that time ? 

Mr. Altimont. Well, I believe subsequent to actual settlement it 
was about 45 days after the contract was signed, or close to it, I had 
met Llo;7d Klenett and Valente. I had met them. I think I had met 
them prior to his final settlement. In other words, once the sales 
contract was signed and the deposit was put on it, the real estate 
agent feels free for the builder and buyer to meet. He feels safe. 

Senator Mundt. Just to have you reconstruct your own personal 
reaction, you thought you sold the house originally to Evelyn Nolan, 
was it ? 

Mr. Altimont. No, not really. 

Senator Mundt. You did not think she bought it, you just did not 
know who did buy it ? 

Mr. Altimont. That is correct. 

Senator Mundt. That is correct ? 

Mr. Altimont. Yes. 

Senator Mundt. Wlien did you first find out who actually bought 
it, and how did you find that out ? 

Mr. Altimont. Well, actually some time prior to — rather, after 
signing the sales contract to settlement, I believe we met Klenert and 
Valente and we went over some items that they wanted corrected on 
the house prior to moving in, prior to settlement. 

Senator Mundt. They told you then that they had bought the 
house ? 

Mr. Altimont. Yes. 

Senator Mundt. And you met them through the Nolans, did you ? 
Or the Parkers ? 

Mr. Altimont. Either that or they called me. I don't remember 
the exact meeting. 

Senator Mundt. You did not know these people before that ? 

Mr. Altimont. Definitely not. 

Senator Mundt. So somebody had to get in touch with them? 

Mr. Altimont. Correct. 

Senator Mundt. It was probably the man who made the sale? 

Mr. Altimont. Correct. 

Senator Mundt. All right. 

The Chairman. Call the next witness. 

Mr. Kennedy. Miss Aileen Callaghan. 

(Members present at this point: Senators McClellan, Goldwater, 
Mundt, and Curtis. ) 

The Chairman. Will you be sworn, please ? 

You do solemnly swear that the evidence you shall give before this 
Senate select committee shall be the truth, the whole truth, and noth- 
ing but the truth, so help you God ? 

Miss Callaghan. I do. 

TESTIMONY OP MISS AILEEN CALLAGHAN 

The Chairman. Miss Callaghan, will you state your name, your 
place of residence, and your business, occupation, or employment ? 

Miss Callaghan. Aileen Callaghan. I am secretary to J. Garrett 
Beitzell, realtor. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3227 

The Chairman. Did you state your residence? 

Miss Callaghan. 2700 Connecticut Avenue. 

The Chairman. Thank you. 

You are familiar, I assume, with the rules of the committee permit- 
ting you to have counsel present to advise you, if you desire ? 

Miss Callaghan. Yes, sir. I am. 

The Chairman. Do you waive counsel ? 

Miss Callaghan. I do. 

The Chairman. Thank you. 

All right, Mr. Kennedy. 

Mr. Kennedy. What was the first transaction that you had in con- 
nection with the sale of these two houses ? 

Miss Callaghan. Well, when the contract came into the office, when 
Mr. Nolan brought it in. 

Mr. Kennedy. The first moneys that you received was $2,000, is 
that right? 

Miss Callaghan. Yes, that is right, two $1,000 checks. 

The Chairman. Does taking pictures while you are testifying 
bother you ? 

Miss Callaghan. I don't like it. 

The Chairman. The photographers will refrain from taking pic- 
tures while the witness is testifying. 

Miss Callaghan. Thank you. 

Mr. Kennedy. The first was $2,000 ? 

Miss Callaghan. That is right. 

Mr. Kennedy. That was transferred into your account ? 

Miss Callaghan. Yes. 

Mr. Kennedy. There were two $1,000 checks, is that right ? 

Miss Callaghan. Yes. 

Mr. Kennedy. Altogetlier you received $5,000 ? 

Miss Callaghan. That is right. 

Mr. KJENNEDY. The other $3,000 came on the settlement date? 

Miss Callaghan. It came after the settlement, from the title com- 
pany. 

Mr. Kennedy. From the Mutual Title Co. ? 

Miss Callaghan. Yes, Mutual Title Co. 

Mr. Kennedy. That was for $3,000? 

Miss Callaghan. Yes. 

Mr. Kennedy. On May 6, 1952, you received $3,000 from the Mutual 
Title Co.? 

Miss Callaghan. I don't remember the date, but I guess that was 
about right. 

Mr. Kennedy. Did you deposit those first two checks in the Beitzell 
bank account ? 

Miss Callaghan. Yes. 

Mr. Kennedy. Will you ask her to identify these, Mr. Chairman? 

The Chairman. The Chair hands you what purports to be a photo- 
static copy of a deposit slip where you presumably deposited the 
$2,000 on April 7, 1952, to the credit of J. Garrett Beitzell, special 
account. 

Will you examine this deposit slip, this photostatic copy, and state 
whether you recognize that as a photostatic copy of the original deposit 
slip ? 

(Document handed to witness.) 



3228 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Miss CALLAGiiAiSr, Yes, I do. 
The Chairman. That may be made exhibit No. 3. 
(The document referred to was marked "Exhibit No. 3," for refer- 
ence and will be found in the appendix on p. 3514.) 

Mr. Kennedy. So you deposited that on April 7, 1952, is that right? 
Miss Callaghan. Yes. 
Mr. Kennedy. Will you identify this check ? 

The Chairman. The Chair hands you what purports to be a photo- 
static copy of a check in the amount of $1,000, dated April 4, 1952, 
payable to the order of Beitzell, signed Anthony Valente. Will you 
please examine this document and state if you recognize it to be a 
photostatic copy of the check ? 
(Document handed to witness. ) 
Miss Callaghan. Yes, I do. 
The Chairman. That may be made exhibit No. 4. 
(The document referred to was marked "Exhibit No. 4," for refer- 
ence and will be found in the appendix on p. 3515.) 
The Chairman. Proceed, Mr. Kennedy. 

Mr. Kennedy. You do not know where Mr. Klenert's check is, 
do you ? 

Miss Callaghan. No. 
Mr. Kennedy. You would not know that. 

Do you know if that was a union check, or his own personal check ? 
Miss Callaghan. I think it must have been a personal check. I 
don't remember. 

Mr. Kennedy. You do not remember. 
Miss Callaghan. No. 

Mr. Kennedy, You do identify this check from Anthony Valente 
and that is a personal check ? 

Miss Callaghan. That is a personal check. 

Mr. Kennedy. You received the $3,000 that we mentioned on the 
closing dates, is that right ? 
Miss Callaghan. Yes. 

Mr. Kennedy. These, Mr. Chairman, are the deposit tickets and the 
check for the $3,000. 

The Chairman. The Chair hands you what appears to be another 
photostatic copy of a deposit slip in the amount of $3,050.90, dated 
May 6, 1952, deposited to the credit of J. Garrett Beitzell. Will you 
please examine that and see if you identify it ? 
(Document handed to witness. ) 
Miss Callaghan. Yes, I do. 

The Chairman. Is there more than one entry on that deposit slip ? 
Miss Callaghan. Yes. 
The Chairman. How many are there ? 
Miss Callaghan. There are four. 
The Chairman. Four entries? 
Miss Callaghan. Yes. 

The Chairman. And the total amount of the deposit is what ? 
Miss Callaghan. $3,050.90. 

The Chairman. Is one of those entries for the amount of $3,000? 
Miss Callaghan. Yes, from the Mutual Title. 
The Chairman. I beg your pardon ? 
Miss Callaghan. From the Mutual Title Co. 



IMPROPER ACTIVmES IN THE LABOR FIELD 3229 

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

(The document referred to was marked "Exhibit No. 5" for refer- 
ence and may be found in the appendix on p. 3516.) 

The Chairman. The Chair hands you what purports to be a photo- 
static copy of a check in the amount of $3,000, from the INIutual Title 
Co., dated May 6, 1952, payable to the order of J. Garrett BeitzeU. 
Will you please examine that and state if you recognize that as a photo- 
static copy of the original check ? 

(Document handed to witness.) 

Miss Callagiiax. Yes. 

The Chairman. That will be made exhibit No. 6. 

(The document referred to was marked "Exhibit No. 6" for refer- 
ence and will be found in the appendix on p. 3517.) 

The Chairman. The Chair will ask you if that is the item of deposit, 
the entry of $3,000 on the deposit slip which you just identified. 

Miss Callaghan. Yes ; it is. 

The Chairman. It is the $3,000 deposit ? 

Miss Callaghan. Yes. 

The Chairman. Thank you very much. 

Mr. Kennedy. I have just a couple of questions in closing. Was 
the Mutual Title Co. usually the title company that was used by 
Beitzell? 

Miss Callaghan. Well, usually, no, because it was a little incon- 
venient for us. They were out in JMaryland. We used to use the title 
company closer to us in the District. 

Mr. Kennedy. Do you know why this title company was used in 
this case? 

Miss Callaghan. Well, I don't know. There was no particular 
reason. Mr. Nolan took care of the case himself. That is the only 
reason I know of. 

(At this point. Senator McClellan witlidrew from the hearing 
room.) 

Mr. Kennedy. Thank you very much. 

Senator Goldwater. Are there any questions ? 

Senator Mundt ? 

Senator Mundt. No questions. 

Senator Goldwater. Senator Curtis ? 

Senator Curtis. I have no questions. 

Senator Goldwater. Tliat is all. Miss Callaghan. You may stand 
aside. 

Mr. Kennedy. Mr. Calabrese. 

(Members present at this point: Senators Goldwater, Mundt, and 
Curtis. ) 

Senator Goldwater. Would you raise your right hand? Do you 
solemnly swear that the testimony you shall give shall be the truth, 
the whole truth, and nothing but the truth, so help you God ? 

Mr. Calabrese. I do. 

TESTIMONY OF ALPHONSE F. CALABRESE 

Senator Goldwater. Would you state your name and your present 
occupation ? 

89330— 57— pt. 9 2 



3230 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Calabrese. My name is Alphonse F. Calabrese. I reside in 
College Park, Md. I am presently employed as an investigator on 
tliis select committee. 

Mr. Kennedy. You have made an investigation of some of the bank 
accounts of Mr. Klenert and Mr. Valente, have you not ? 

Mr. Calabrese. Yes. 

Mr. Kennedy. In connection with the 2 checks that we have been 
discussing, the 2 checks for $1,000 apiece, have you made an investi- 
gation concerning those 2 checks ? 

Mr. Calabrese. Yes. 

Mr. Kennedy. Did Mr. Klenert open a checking account at the 
City Bank on May 19, 1941 ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And he closed it down February 1, 1955 ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And Mr. Valente opened a checking account at the 
same bank on February 3, 1940 ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And it was reopened in December 1943, in a joint 
account with his wife ; is that right ? 

Mr. Calabrese. Yes. The joint account was opened with his wife 
on January 8, 1952. 

Mr. Kennedy. It was reopened in December 1943, and then the 
joint account in January 1952 ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Did the union, the United Textile Workers, also 
have an account there ? 

Mr. Calabrese. Yes; they had a checking account amongst other 
accounts; that is right. The checking account was opened on June 
2, 1948. The person who was authorized to sign for the union was 
the secretary-treasurer, Lloyd Klenert. This account was closed on 
June 10, 1953. 

Mr. Kennedy. Did you attempt to determine whether the $1,000 
paid out to Beitzell on April 4, 1952, and signed by Anthony Valente — 
did you determine whether that had been debited to Valente's ac- 
count ? 

(At this point. Senator McClellan entered the hearing room.) 

Mr. Calabrese. We ascertained that Valente's account was debited 
for $1,000 on April 8, 1952, the day after the $1,000 check was de- 
posited in the Security Bank by the Beitzell Realtors. 

Mr. Kennedy. Did you request of Mr. Klenert, when you inter- 
viewed him, for any of the checks that he had during the period of 
time ? Did you make the request of Mr. Valente ? 

Mr. Calabrese. Yes, I did ; and he advised that all his checks had 
been disposed of up to November, or approximately November, of 
1955, which he made available. 

Mr. Kennedy. Did you go, then, to his bank account, also, to deter- 
mine whether $1,000 had been withdrawn from it, from his bank 
account ? 

Mr. Calabrese. Yes. And during that pertinent period, April 7, 
8, and 9, there was no $1,000 debit on his bank account at the City 
Bank. 

Mr. Kennedy. Was there a $1,000 debit on the account of the United 
Textile Workers? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3231 

Mr. Calabrese. There was a $1,000 debit on the account of the 
UTWA, and that also was on April 8, 1952, the same date as of Val- 
ente's personal account. 

Mr. Kennedy. We have no documentation, do we, on the question 
of whether this $1,000 that came out of the UTWA was the same $1,000 
that was used as a downpayment on this home ? 

Mr. Calabrese. We have no documentation, because the City Bank 
does not microfilm — did not microfilm at that time — the checks. 

Mr. Kennedy. And the records of the union have been destroyed? 

Mr. Calabrese, And the records of the union have been destroyed. 

Mr. Kennedy. That is, for during this period of time ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. But you do not know on the same day that $1,000 
was debited to Anthony Valente's account, that $1,000 was debited to 
the UTWA account? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And, during this pertinent period of time, there was 
no debit of $1,000 to the other account ? 

Mr. Calabrese. That is correct, not during that period of the 7th, 
8th, 9th, and 10th, 

Mr, Kennedy, You can determine, can you not, from the deposit 
slip, that the two $1,000 checks were from the City Bank? 

Mr, Calabrese. That is correct. 

Mr. Kennedy. They have been placed in the record ? 

Mr. Calabrese. They were placed in the record. It indicates that 
there were two $1,000 checks drawn on the City Bank. 

Mr. Kennedy. That is all at this time, Mr. Chairman. 

The Chairman. All right. Call the next witness. 

(Members present at this point: Senators McClellan, Goldwater, 
Mundt, and Curtis.) 

Mr. Kennedy. Mr. Martin J. Quigley. 

The Chairman. Mr. Quigley, will you be sworn, please ? 

You do solemnly swear that the evidence you shall give before this 
Senate Select Committee shall be the truth, the whole truth and noth- 
ing but the truth, so help you God? 

Mr. Qtjigley. I do. 

TESTIMONY OF MAETIN J. aUIGLEY 

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

Mr. Quigley. Martin J. Quigley, 10421 River Eoad, Potomac, Md. 
I am president of the Mutual Title Co. 

The Chairman. How long have you been president of that company, 
Mr. Quigley ? 

Mr. Quigley. Since its formation in 1949. 

The Chairman. You are familiar with the rules of the committea 
Do you waive counsel ? 

Mr. Quigley. I do. 

The Chairman. Thank you very much. 

All right, Mr. Kennedy, proceed. 

Mr. Kj:nnedy. You are also an attorney, are you, Mr. Quigley? 

Mr. Quigley. Yes, sir. 

Mr. Kennedy. And you are a member of the bar of the District of 
Columbia? 



3232 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. QuiGLEY. Yes, sir. 

Mr. Kennedy. Could 3'ou tell the committee what the Mutual Title 
Co.'s duties or responsibilities are ? 

Mr. QuiGLEY. We are engaged in the examination and settling of 
real estate transactions, principally in Maryland. 

Mr. Kennedy. Primarily in Maryland ? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. Are you involved in the sale of real estate? 

Mr. QuiGLEY. No. 

Mr. Kennedy. What is the difference in settlements ? 

Mr. QuiGLEY. We handle the closing. We examine the title, handle 
the closing, and see to the transfer of the property and the disburse- 
ment of the funds to the seller. 

Mr. Kennedy. Were you involved in the closing of a real-estate 
deal involving certain homes for Mr. Valente and Mr. Klenert? 

Mr. QuiGLEY. In the closing, yes. Not the sale. 

Mr. Kennedy. In the closing ? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. When did you first meet Mr. Klenert and Mr. Va- 
lente? 

Mr. QuiGLEY. The early part of May 1952. 

Mr. Kennedy. The early part of what ? 

Mr. QuiGLEY. OfMav. 

Mr. Kennedy. Of 1952? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. How did you happen to meet them ? 

Mr. QuiGLEY. They came in to settle for the purchase of these 
houses. 

Mr. Kennedy. 'Wlio was handling it from your office ? 

Mr. Qihgley. I handled it personally. 

Mr. Kennedy. Did they make a payment to you at that time ? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. Hoav much money did they give you ? 

Mr. QuiGLEY. They originally put up $95,000. 

Mr. Kennedy. They put up $95,000 ? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. For the purchase of these two homes ? 

Mr. QuiGLEY. For the purchase of real estate. It was not designated 
at the time what it was for, whether it was to be for the houses or for 
a building for a headquarters for the union. 

Mr. Kennedy. If they came in with $95,000, they designated how 
the $95,000 was to be spent, did they not ? 

Mr. QuiGLEY. Ninety-five was deposited 2 or 3 days before the clos- 
ing. Theclosingwason, if Irecall,May 5or6. 

Mr. Kennedy. And they brought in $95,000 earlier? 

Mr. QuiGLEY. Two or three days prior. 

Mr. Kennedy. What was the $95,000 for? 

Mr. QuiGLEY. It was to be held by me in escrow until they decided 
what property would be closed with that money. 

Mr. Kennedy. Were there any documents or any contract that you 
made with them? 

Mr. QuiGLEY. No, that was just a verbal arrangement. They would 
come in in 2 or 3 days to close on the purchase of the houses. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3233 

Mr. Kennedy. On the purchase of the houses ^ 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. So it was understood at that time when they brought 
the $95,000 in, that it was to be for the purchase of the houses? 

Mr. QuiGLEY. No, it was not. 

Mr. Kennedy. What was understood ? 

Mr. QuiGLEY. It was being left in escrow with me, with my com- 
pany, for the purchase of real estate and at the time it was deposited, 
that real estate was not designated. 

Mr. I\j;nnedy. Do you mean these two union oiScials brought in a 
check for $95,000, just gave it to you, and there was no discussion as 
to how the money was going to be used or what property they had in 
mind? 

Mr. QuiGLEY. Not until 2 or 3 days later, as I recall. 

Mr. Kennedy. Then did they tell you the property they had in mind 
was the two homes for themselves ? 

Mr. QuiGLEY. They told me to settle the two homes and to use what- 
ever was necessary out of the $95,000 to accomplish that. 

The Chairman. As I understand you, Mr. Quigley, when they first 
made the deposit with you in escrow, the $95,000, they did not advise 
you at that time the specific property it was to be apj)lied to ? 

Mr. QuiGLEY. No, I understood that they were in the market for 
these two houses and also for a piece of property as a headquarters for 
the union. 

The Chairman. At that time, you understood they were in the mar- 
ket for the two houses and also another piece of property that might 
be used for union purposes ? 

Mr. QuiGLEY. Yes. 

The Chairman. And when they first placed the $95,000 with you, 
they had not determined, that is, at least they gave you no instruc- 
tions, as to which one it would be applied to, but some 2 or 3 days later 
they did instruct you to apply such part of it as necessary to acquire 
these two homes ? 

Mr. Quigley. That is correct. 

The Chairman. All right. 

Senator Mundt ? 

Senator Mundt. Mr. Quigley, did they come into }our office mian- 
nounced or did somebody bring them in ? 

Mr. Quigley. They were brought in by Mr. M. Parker Nolan, a real 
estate salesman for the Beitzell Co. 

Senator Mundt. Undoubtedly a man who had done business with 
you before, I presume ? 

Mr. Quigley. Yes, a friend of mine and he referred whatever title 
business he could to me. 

Senator Mundt. Did he give you any idea as to what property he 
was trying to sell them ? 

Mr. Quigley. Well, the titles had been run on the two houses. They 
were ready for settlement. They were ready to be closed. We had 
completed our title examination on those. 

Senator Mundt. On the two houses ? 

Mr. Quigley. Yes, sir. 

Senator Mundt. So you did know at that time that the two houses 
were involved ? 

Mr. Quigley. Yes, sir. 



3234 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. But you did not know whether or not additional 
parcels of property might also be involved ? 

Mr. QuiGLEY. No, I did not. 

Senator Mundt. Was the $95,000 brought in in the form of folding: 
money or a personal check or a union check ? 

Mr. QuiGLET. It was a union check. 

Senator Mundt. It was a union check ? 

Mr. QuiGLET. Yes, sir. 

Senator Mundt. Thank you. 

The Chairman. Senator Curtis ? 

Senator Curtis. You say that there were title papers in your office 
for these two houses ? 

Mr. QuiGLEY. Yes, sir. 

Senator Curtis. You made at least some preliminary examination ? 

Mr. QuiGLEY. We made a full examination. We were ready for 
settlement about May 1. 

Senator Curtis. Did you have any title papers or any contract 
papers or any papers relating to a property that was under considera- 
tion for purchase for a union headquarters ? 

Mr, QuiGLEY. No, sir. 

Senator Curtis. The only place that the idea of buying a union 
headquarters was brought in was when these men mentioned it ? 

Mr. QuiGLEY. That is correct. I had nothing in writing at the tune. 

Senator Curtis. And at the time they gave you a check that was 
from the union, they told you that they might be settling on a union 
headquarters ? 

Mr. QuiGLEY. Yes, sir ; that was mentioned. 

Senator Curtis. Did they ever buy a union headquarters ? 

Mr. QuiGLEY. As far as I know, they did not. 

Senator Curtis. Not through your agency ? 

Mr. QuiGLEY. No. 

Senator Curtis. Or, rather, not through your title company ? 

Mr. QuiGLEY. No. 

The Chairman. All right, Mr. Counsel. 

Mr. Kennedy. Mr. Chairman, we have that document. Can we 
have it identified ? 

The Chairman. I have here what purports to be a deposit slip in 
the amount of $120,606.51, dated May 2, 1952, deposited to the credit, 
of the Mutual Title Co., trustee account. 

I ask you to examine this photostatic copy and see if you recognize 
it and identify it as such. 

(A document was handed to the witness.) 

Mr. QuiGLEY. Yes, that is a copy of our deposit slip for that day. 

The Chairman. That shows a total, as the Chair stated, of some 
$120,000. What is the largest item of deposit? 

Mr. QuiGLEY. $95,000. 

The Chairman. What is the source of the deposit ? 

Mr. QuiGLEY. A check from the United Textile Workers of 
America. 

The Chairman. A check from the United Textile Workers of 
America ? 

Mr. QuiGLEY. Yes, sir. 

The Chairman. Who delivered that check to you? 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3235 

Mr. QuiGLEY. I can't say. That is 5 years ago and I cannot make a 
definite statement. I would presume it was these gentlemen. That is 
all I can say. 

The Chairman. You do not know who actually, personally 
delivered it to you ? 

Mr. QuiGLET. Xo, sir. 

The Chairman. But that check came from that source and it was 
on that account ? 

Mr. QuiGLEY. That is correct. That is on the deposit slip. 

The Chairman. That is the $95,000i that you have been referring to 
as having been deposited with you in escrow for the purpose of closing 
purchases of certain real estate, the tracts that had been mentioned up 
to that time ? 

Mr. QuiGLEY. Yes. 

The Chairman. Thank you very much. 

That may be made exhibit No. 7. 

(The document referred to was marked "Exhibit No. 7" for refer- 
ence and will be found in the appendix on pp. 3518-3519.) 

Mr. QuiGLEY. If I might, this deposit slip is dated May 2. The set- 
tlement was made on the 6th on the sale of the houses. 

The Chairman. Some 3 days later. 

Mr. QuiGLEY. Yes, sir. 

Senator Mundt. Mr. Quigley, as part of your functions in the Mu- 
tual Title Co. in closing up real estate transactions, would you be aware 
of the purchase price paid for properties closed in your office ? 

Mr. QuiGLEY. Yes, sir. 

Senator Mundt. What was the purchase price of the two houses 
involved ? 

Mr. QuiGLEY. The purchase price was $95,000 for the two houses, as 
disclosed by the contract. 

Senator Mundt. So that when they gave you a check for $95,000 
there was no money left with which to buy any additional property 
beyond the two houses ? 

Mr. QuiGLEY. The ninety-five was not used to settle on the houses. 
That much was not required. Only about $57,000. There were two 
deeds of trust on there which made up the difference. 

Senator Mundt. But the purchase price of the houses was $95,000. 
The size of the check was $95,000. 

Mr. QuiGLEY. That is correct. 

Senator ]\Iundt. I understand they did not pay it all in cash, but 
part of the $95,000 might have been returned because they took out a 
mortgage of some kind. 

Mr. QiHGLEY. They assumed two construction loan mortgages that 
were on the property, totaling 

Senator Mundt. This is something which, in my mind, is more than 
coincidental. That is the size of the check and the price of the houses 
were both $95,000. 

INIr. QuiGLEY. But they only needed $57,000 to close the houses. 
They did not need $95,000. 

(At this point. Senator Kennedy entered the hearing room.) 

Mr. Kennedy. You knew, did you not, that the $95,000 that was 
given to you in the form of the check was for the purchase of these 
two houses ? 



3236 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. QuiGLEY. No, I can't say that I knew it was for the purchase 
of the houses. Part of it was ; $57,000 of it was. 

Mr. Kenxedy. That was later. But w^hen the $95,000 was given 
to you originally, you knew, did you not, that that $95,000 was for the 
purchase of these two houses ? 

Mr. QuTGLEY. Xo. I knew that the purcliase price of the houses 
was $95,000, but I did not know what the terms were until we closed the 
case, I think on a Monday. I think this deposit was made on a 
Friday. 

Mr. Kennedy. I am not asking you about the terms. You knew 
that the $95,000 was for the purchase of these two houses ; did you not ? 

Mr. QuiGLEY. Part of it. 

Mr. Kennedy. You knew part of it was ? 

Mr. Qtjigley. On Monday, I knew that $95,000 was not required. 

Mr. Kennedy. Wlien you got this check on May 1, what did you 
know ? Did you not know on May 1 that this $95,000 was for the pur- 
chase of these two houses ? 

Mr. QuiGLEY. Part of it was to be used for the purchase of the 
houses, yes. 

Mr. Kennedy. "\Yliy do you say part ? 

Mr. QuTGLEY. Because we did not spend the $95,000. 

Mr. Kennedy. I understand vou did not ultimately. 

Mr.QuiGLEY. Only $57,000. " 

Mr. Kennedy. I understand that. But at that time, you under- 
stood that the $95,000 check was to pay for these two houses, did you 
not? 

Mr. QuiGLEY. Whatever part of the check was required to close it, 
yes. 

Mr. Kennedy. And it might be all of the check ? 

Mr. QuiGLEY. It could have been all, if they had not assumed the 
trust, yes. It would have been. 

Mr. Kennedy. I just want to draw j^our attention to the second 
page. You deposited that check for $95,000. Do you have a number 
there? 

Mr. QuiGLEY. Yes. That is the case number. 

Mr. Kennedy. What is that the case number for? 

Mr. QuiGLEY. That is our Mutual Title Co. case number. 

Mr. Kennedy. A case number for the purchase of two houses, is 
that correct? 

Mr. QuiGLEY. That is correct. 

Mr. Kennedy. So for that $95,000 you have a case number there 
that refers to two houses that were then being negotiated to be pur- 
chased by Valente and Klenert? 

Mr. QuiGLEY. That is correct. 

Mr. Kennedy. Would you have him identify these documents, Mr. 
Cliairman. 

The Chairman. The Chair hands you a three-page photostatic copy 
of a document on the stationery of the Mutual Title Co., dated May 5, 
1952. It starts off "Albert J. Altimont and Alfred A. Altimont in'the 
matter of sale of lot 1, plot A, square 18, Rock Creek Hills." 

I wish you would examine this document and see if you identify it 
as a photostatic copy of the original and then state exactly what the 
document is. 

(A document was handed to the witness.) 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3237 

Mr. QuiGLEY. This statement is the seller's statement in my hand- 
writing of the settlement of the sale by Altimont to Klenert and 
Valente. 

The Chairman. The seller's statement, did you say? 

Mr. QuiGLEY. Yes, sir. The owners or seller's. The Altimont Co. 
was the seller. 

The Chairman. What is the difference? I am not sure I under- 
stand. What is the difference between a seller's statement and a buyer's 
statement ? 

Mr. QuiGLEY. Well, one of them gets money back and the other 
puts it up. 

The Chairman. I know that is true with the money, but I thought 
one statement would reflect the whole transaction. I do not know. 

Mr. QuiGLEY. No. We make the statements separately, only using 
the items that in this case, Altimont was interested in. The}' are not 
interested in the title expense and State stamps and things like that. 

The Chairman. In other words, in the closing, there are separate 
expenses for the purchaser and for the seller ? 

Mr. QuiGLEY. That is correct. And we just separate the statements 
for that reason. 

The Chairman. I see. That may be made exhibit No. 8, for refer- 
ence. 

(The document referred to was marked "Exhibit No. 8" for refer- 
ence and will be found in the appendix on p. 3520.) 

Mr. Kennedy. The other two pages give the breakdown as to the 
homes, is that right, the buyer's statements? 

Mr. QuiGLEY. That is right. They are separate buyer's statements. 

]\Ir. Kennedy. "^^Hiat was the price again as indicated on your seller's 
statement ? 

Mr. QuiGLEY. $95,000, and the two purchasers' statements total 
$95,000. 

The Chairman. Let the Chair get it straight here for the record. 
The top photostatic copy is the seller's statement? 

Mr. QuiGLEY. Altimont, the seller's, statement, yes, sir. 

The Chairman. And the other two pages are what ? 

Mr. QuiGLEY. The next one is a statement of Lloyd Klenert, showing 
a purchase of $52,500. The next one is a purchaser's statement for 
Mr. Valente, and that price is $42,500. 

The Chairman. Then, the top document, the first page you testified 
to, will be made exhibit No. 8. The second one that you testified to 
will be made exhibit No. 9; and the third one will be made exhibit 
No. 10. I want to get them straight for the record. 

(The documents referred to were marked "Exhibits Nos. 9 and 10" 
for reference and will be found in the appendix on pp. 3521-3522.) 

Mr. Kennedy. The case number of them is 2223, is that correct ? 

Mr. QuiGLEY. That is correct. 

Mr, Kennedy. Was the original intention, at least for a period of 
1 day, to use the whole $95,000 for the purchase of these 2 homes? 

Mr. QuiGLEY. No. I am not going to admit that they told me to 
use the $95,000 for the purchase of the homes because they didn't and 
it was not settled on that basis. 

Mr. Kennedy. I am not asking you whether it was settled on that 
basis. I am asking you whether there wasn't an intention. 



3238 IMPROPER ACTIVmES IN THE LABOR FIELD 

Mr. QuiGLEY, I do not know. 

Mr. Kennedy. You do not know ? "Why was the $95,000 deposit, the 
check that you received, why was it stipulated that it was in reference 
to 2223, and that is your file number, which concerns the sale of these 
two houses ? 

Mr. QuiGLEY. The property that they were considering, or told me 
they were considering, to buy for headquarters, we did not have any 
specific property in mind. We had no way of indexing it, excepting 
under their name. 

Mr. KJENNEDY. Let me ask you this : Is that the usual procedure for 
a person who intends to buy property, to put a deposit down on prop- 
erty he does not know anything about, and which the seller knows 
nothing about ? 

Mr. QuiGLEY. JMaybe he did know something about it. I don't 
know. 

Mr. ICennedy. He did not discuss it with you, did he ? 

Mr. QuiGLEY. No. He just put it up as an escrow to buy a piece 
of property. 

Mr. Kennedy. Wliich was never identified ? 

Mr. QuiGLEY. Kot at that time ; no. And it never has been identi- 
fied, as a matter of fact. 

Mr. Kennedy. Is that the usual procedure, to put up money on 
property that is not identified, to either the purchaser or the seller? 

Mr. QuiGLEY. It is not usual, and it is not unusual. We act as es- 
crow agents. 

Mr. Kennedy. I can understand you acting as escrow agents, but I 
cannot understand you acting as escrow agents on property that you 
cannot identify. 

Mr. QuiGLEY. The time had not come to identify it. We were hold- 
ing the money until we could identify it. 

Mr. Kennedy. What would be the purpose of putting up money on 
property that nobody knew what it was ? 

Mr. QuiGLEY. They would have to answer that. I do not know. 
They put it up. 

Mr. Kennedy. Have you ever had that happen to you before ? 

Mr. QuiGLEY. Not exactly that way ; no. 

The Chairman. The Chair hands you what purports to be photo- 
static copies of the stubs of checks covering nine different checks. I 
think, as I understand it, only 5 of the 9 are relevant to this inquiry. 
I will ask you to examine these photostatic copies and see if you iden- 
tify them as copies of your original check stubs. 

(Documents were handed to the witness.) 

Mr. QuiGLEY. It looks like these checks were drawn and then voided. 
Wliy, I don't know. 

The Chairman. Do you know whose handwriting they are in ? 

Mr. QuiGLEY. Yes. They are in my bookkeeper's handwriting. 

The Chairman. You recognize the handwriting ? 

Mr. QuiGLEY. Yes, sir. 

The Chairman. Do you recognize those as photostatic copies of your 
check stubs ? 

Mr. QuiGLEY. Yes. 

The Chairman. You do so recognize them. 

Mr. QuiGLEY. Yes. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3239 

The Chairman. Then will you, for us, Mr. Quigley, identify from 
the three sheets that you have before you, which contain the stubs of 
nine checks ; am I correct ? 

Mr. QiHGLET. That is correct ; yes, sir. 

The Chairman. Some of them may not relate to this transaction 
that is involved, so will you identify by number as appears on the 
stub, those that are related to this transaction ? 

Mr. QuiGLET. Those with the X mark do not belong to the transac- 
tion. 

These that are X'd out do not belong in this transaction. They are 
in another case. 

The Chairman. Will you identify by number those that are not 
marked out, according to your check stub number ? 

Mr. Quigley. Check No. 6057 was drawn to the Equitable Life 
Assurance Co. and then voided. 

The Chairman. If you will identify all of them relating to this, 
then we can refer to them by number. 

You say that was voided. Now to the next one that relates to the 
transaction. 

Mr. Quigley. That is check 6058. 

The Chairisian. Six what ? 

Mr. Quigley. 6058. 

The Chairman. 6058, and the next number ? 

Mr. Quigley. 6059, 6060. 

The Chairman. 6060. 

Mr. Quigley. 6061. 

The Chairman. And 6061. Those 5 stubs are from 6057, begin- 
ning with 6057, and including 6061, are stubs of checks issued, whether 
they are voided or not, relating to the transaction we have been 
discussing? 

Mr, QuiGiiEY. Yes, sir. 
-•v The Chairman. Those may be made exhibit No. 11 for reference. 

(The documents referred to were marked "Exhibit No. 11*' for refer- 
ence and will be found in the appendix on pp. 3523-3524.) 

The Chairman. Mr. Kennedy, do you want to ask a question? 

Was it 6057 that was marked "void" ? 

Mr. Quigley. Yes, sir. 

Mr. Kennedy. Just so we got the record straight, there was $57,000 
worth of equity in this transaction ; is that right ? 

Mr, Quigley. Yes. 

Mr. Kennedy. And there was $38,000 in mortgages? 

Mr. Quigley. Eight, 

Mr. Kennedy. And the mortgages were with the Equitable Life 
Assurance Co ? 

Mr. Quigley. Yes. 

Mr. Kennedy. So on the question of whether it was the intention 
at the beginning, originally, and you knew of this intention, to use 
the whole $95,000, there would be the $57,000 plus the payments to the 
Equitable Life Assurance Co. 

Do you have any check stubs there showing that it was the intention 
to pay the moneys to the Equitable Life Assurance Co. ? 

Mr. Quigley. This would look like it was the intention, except the 
check to J. Garrett Beitzell is drawn for an amount entirely dilferent 
from the amount that was paid to them. 



3240 IMPROPER ACTn'ITIES m THE LABOR FIELD 

. Mr. KENNEDr. How much was that check for ? 

Mr.QuiGLET. $2,085.66. They got $3,000. 

Mr. Kennedy. What about the other. Equitable Life Assurance? 

Mr.QuiGLET. 6057 is for $20,164.36. 

Mr. Kennedy. Isn't that the worth of the mortgage for that piece 
of property ? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. So that figure is correct is it not? 

(At this point, Senator Goldwater withdrew from the hearing 
room.) 

Mr. Quigley. I must presume it is correct ; yes. 

Mr. Kennedy. Do you have any others ? 

Mr. Quigley. The next one, 6058, is drawn to the Equitable Life 
Assurance Co. for $18,658.53. 

Mr. Kennedy. That is the $38,000 ; is it not ? 

Mr. Quigley. Yes ; those 2 would total roughly $38,000. 

Mr. Kennedy. And together with the $57,000 that was going to be 
paid, makes the $95,000 ; is that right ? 

Mr. Quigley. Yes. 

Mr. Kennedy. So it was the intention, and you knew of the inten- 
tion, to use the whole $95,000 to purchase these 2 pieces of property 
for Mr. Klenert and Mr. Valente ; is that correct ? 

Mr. Quigley. I am not going to admit I knew it because I don't 
know. I am looking back 5 years. 

Mr. Kennedy. You have made out checks to indicate that. 

Mr. Quigley. I made out one to Beitzell for $2,085 and then paid 
him $3,000. I can't explain that, either. 

Mr. Kennedy. At least you have made out checks to cover the whole 
$95,000; is that correct? 

Mr. Quigley. Yes, but it was not closed on that basis. 

Mr. Kennedy. I understand it was not closed. All I am getting at 
now is that it was the intention to use the whole $95,000 for that pur- 
pose ; is that correct ? 

Mr. Quigley. Wliether it was the intention or not, I don't know. 
It was not used for that purpose. I can tell it was not used. I don't 
know what the intention was. 

Mr. Kennedy. $95,000 first came in, in the check, with its case 
number in your file, this very case, on purchasing the 2 pieces of 
property, and then you have these check stubs which add up to $95,000. 

Do you deny that it was the intention, and that you knew of it, to 
use this whole $95,000 for the purchase of these 2 pieces of property ? 

Mr. Quigley. These gentlemen will have to tell you about the inten- 
tion. I don't know what their intention was. 

Mr. Kennedy. I am asking about you, about what you knew. 

Mr. Quigley. I can only show what these checks show, and the ones 
that were voided. I do not know what their intention was. 

The Chairman. You mean you do not now remember at that time 
why you happened to make out checks to cover the entire amount? 

Mr. Quigley. No, sir. That is 5 years ago. 

The Chairman. 1 say you now say you do not know why you did it? 

Mr. Quigley. No, I do not. I drew the checks apparently for the 
full $95,000, yes. 

The Chairman. And for some reason, but you do not now know 
the reason why, the full amount was not used ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3241 

Mr. QuiGLET. And they were canceled and not used, yes. 

The Chairman. You do not know why they were canceled? 

Mr. QuiGLEY. No, I do not. 

The Chairman. Of course, if you were going to assume mortgages 
already on the property, assume the payment of them, it wouldn't 
take tlie $95,000, all of iti 

Mr. QuiGLET. That is right. 

The Chairman. So what you finally did afterward was appar- 
ently you thought you had to pay out the full $95,000, you wrote 
checks accordingly, and you found that you didn't have to, and, for 
some reason then only wrote checks out for the difference between 
the mortgage amount assumed and the total purchase price. 

Mr. QuiGLEY. That is correct. 

The Chairman. But you are unable to recall now why you happened 
to make out checks to cover the full amount ? 

Mr. QuiGLEY. I can only assume it was on instructions from the 
purchasers. 

As I remember, the contract gave them an option to either assume 
or pay all cash, and they elected, evidently elected, to assume, and 
instructed me, and I abided by their instructions. 

(At this point. Senator Kennedy withdrew from the hearing room.) 

Mr. IvENNEDY. Did you call or telephone the Equitable Life As- 
surance Co. ? Did you call the Equitable Life Assurance Co. to find 
out how much it would cost to pay off these mortgages ? 

Mr. QuiGLEY. Evidently. If that figure would have paid them off, 
I must have called them. 

Mr. Kennedy. You must have telephoned them ? 

Mr. QuiGLEY. Yes. So instead of paying them, I just sent them 
two overdue monthly payments that are shown on the Altimont state- 
ment. 

Mr. Kennedy. Ultimately, you say that the whole $95,000 was not 
used, union funds were not used, for the purchase of these two homes 
for Mr. Klenert and Valente. 

Was any union money used for the purchase of the homes of Mr. 
Klenert and Mr. Valente ? 

Mr. QuiGLEY. Yes. $57,000. 

Mr. Kennedy. That was for tlie equity, to purchase the equity, in 
these two properties, and they assumed the mortgages, is that right? 

Mr. QuiGLEY. That is correct. 

Mr. Kennedy. What date was tliat? 

Mr. QuiGLEY. On or about May 6, 1952. 

The Chairman. Let us get one other thing straight. We are talk- 
ing about $57,000 being used for the purchase of two houses. Let 
us identify each house and state how much of the $57,000 went to the 
purchase price of that house. 

What are the two men's names ? 

Mr. Kennedy. Valente and Klenert. 

The Chairman. How much of the $57,000 was used to pay on his 
house ? 

Mr. QuiGLEY. The amount shown on his statement there. 

The Chairman. I don't recall the amount. 

Mr. QuiGLEY. It shows a balance due to settle of $32,000 or some- 
thing on one 

The Chairman. Let us s^et it exact for the record. 



3242 IMPROPER ACTIVmES IN THE LABOR FIELD 

According to your statement here, which has been made exhibit No. 
9, $32,095.92 was the amount out of the $57,000 that went to pay for 
the Klenert house. 

Would you say that is correct ? 

Mr. QuiGLET. Yes, sir. 

The Chairman. We will take the next one, which would be the 
Valente contract. It shows $24,013.76 out of the $57,000 was paid for 
that house. Is that correct ? 

Mr. QuiGLEY. Yes, sir. 

The Chairman. So those two figures total the $57,000 ? 

Mr. QuiGLEY. No, I think the figure of $57,000 was just an arbitrary 
figure to give me enough to close. I think they got some small refl^nd, 

The Chairman. Let's see what those two total. I am advised they 
total $56,462.48, and that the amounts stated here are the amounts that 
went to each house. 

Mr. QmoLEY. Yes. 

The Chairman. Thank you very much. 

Mr. Kennedy. So $57,000 of the union money, then, was used to pur- 
chase these two homes for Klenert and Valente ; is that right ? 

Mr. QuiGLEY. Yes, temporarily. 

Mr. Kennedy. Mr. Quigley, did this use of union money to purchase 
personal homes raise any question in your mind ? 

Mr. QuiGLEY. None whatever. 

Mr. Ejennedy. You thought that was perfectly proper ? 

Mr. QuiGLEY. As far as I was concerned ; yes. 

Mr. Kennedy. Particularly if your testimony is correct earlier 
that you thought this money was a downpayment, this $95,000 was a 
downpayment, money to be held in escrow for the purchase of property 
for a union building, and then to go around 4 or 5 days later and use 
the money, or $57,000 of it, toward the purchase of personal homes for 
2 union officials ? 

You didn't see anything wrong ? 

Mr. QuiGLEY. It is not our duty to see where the money comes from. 
That is not our job. 

Mr. Kennedy. And this didn't raise any question in your mind ? 

Mr. QuiGLEY. None whatever; no. It wasn't any of my business. 

Mr. Kennedy. Wlien somebody comes in with corporate funds or 
union funds and uses those funds for a personal purchase, that doesn't, 
raise any question in your mind ? 

Mr. QuiGLEY. None whatever ; no. 

Mr. Kennedy. You think you can go ahead and use them ? 

IMr. QuiGLEY. We do ; yes. 

Mr. Kennedy. You don't think it should raise any question in your 
mind ? 

Mr. Quigley. No. We are not an authority, not a union or anything 
like that. I am running a title company. If somebody brings in a 
check from a union or if they bring in a trustee check, we will accept it. 
It is not our business to question those funds. 

Mr. Kennedy. Mr. Quigley, you said originally that you thought 
$95,000 was to be held in escrow for the purchase of a union head- 
quarters. 

Mr. Quigley. That is right. 

Mr. Kennedy. And 5 days later they turn around and buy them- 
selves personal homes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3243 

Didn't that raise any question ? 

Mr. QuiGLEY. None whatever ; no. They could have withdrawn the 
$95,000. They could have withdrawn the purchase of the houses. We 
have no control over that. 

Mr. KJENNEDY. And they didn't tell you that they wanted to keep 
this secret, and that you should help them and assist them in keeping 
the secret ; is that right ? 

Mr. QuiGLET. Positively not. 

Mr. Kennedy. Did you receive a letter from them on May 14, from 
Mr. Klenert on May 14, 1952 ? 

The Chairman. I hand you what purports to be a photostatic copy 
of a letter dated May 14, 1952, addressed to Mr. Martin Quigley, Mu- 
tual Title Co., and signed by Lloyd Klenert, International secretary- 
treasurer. 

This is on the United Textile Workers of America stationery. I 
ask you to examine it and see if you identify that as a photostatic copy 
of the original letter that you received. 

(The document was handed to the witness.) 

Mr. Quigley. Yes, sir ; I received that letter. 

The Chairman. Since you have identified that, that may be made 
exhibit No. 12. 

Mr. Kennedy. Mr. Chairman, may I read this into the record ? 

The Chairman. It may be read into the record. 

(The document referred to was marked "Exhibit No. 12" and fol- 
lows below :) 

;Mr. Kennedy (Reading). United Textile Workers of America, Maj' 14, 1952, 
addressed to Martin Quigley, Mutual Title Co., 1917 15th Street NW., Washing- 
ton, D. C. 

Dear Me. Qthgley : 

I am enclosing herewith cashier's checks for the amount of $57,000, ,$30,000 
drawn upon the City Bank and $27,000 drawn upon the Liberty Mutual Bank, 
which is a deposit on certain property for the United Textile Workers of America, 
to be identified as parcel No. 2. 

You have already in your possession a deposit of $95,000 which you are 
holding as a deposit for another property for the United Textile Workers of 
America which is identified as parcel No. 1. 

I am hereby requesting, because of certain organizational problems that we 
now have, that the first deposit of $95,000 be returned, and that the second 
deposit of $57,000 be held by you until such time as we close a definite deal for 
the building for the United Textile Workers of America. 

Thanking you, I am. 
Very truly yours, 

Lloyd Klenert, 
International Secretary-Treasurer. 

Do you have any comment on that letter ? 

Mr. Quigley. No. I received that letter. 

Mr. Kennedy. Is this true, "You have already in your possession a 
deposit of $95,000" ? Did you have in your possession then a deposit 
of $95,000? 

Mr. Quigley. I had had it, but I evidently didn't have it on the date 
of that letter. 

Mr. Kennedy. You know you didn't have it that day ? 

Mr. Quigley. No. 

Mr. Kennedy (reads) : 

You have already in your possession a deposit of $95,000 which you are holding 
as a deposit for another property for the United Textile Workers of America 
which is identified as parcel No. 1. 



3244 IMPROPER ACTIVITrES IN THE LABOR FIELD 

What did that sentence mean ? 

Mr. QuiGLEY. Well, evidently the houses are parcel No. 2, and that 
was to replace the $57,000 that had been used to settle on the houses. 
That would be my construction of it. 

Mr. KJENNEDY. What is parcel No. ? 

Mr. QuiGLEY. I presume that is the building they intended to buy 
for the headquarters. 

Mr. Kennedy. Wliere was that building ? 

Mr. QuiGLEY. I don't know as they ever located a building. 

Mr. Kennedy. Then didn't this raise some suspicion in your mind, 
when you had already used $57,000 of union funds to purchase these 
two personal homes, and this letter, on its surface is false? 

Mr. QuiGLEY. It is not my job to be the judge in these cases. 

The Chairman. Mr, Quigley, the only thing about this is he is stat- 
ing here in a letter to you, and I assume a copy of it was kept in the 
union files, that you still had on hand — that is the import of it, that 
you had on hand — $95,000 of union money on May 15. 

Mr. QuiiGLEY. I think that that $57,000 replaced the $57,000 that 
was put into the houses. 

The Chairman. He says, "you already have." 

Mr. QuiGLEY. Well, I had had. 

The Chairman. You had had, but you didn't have at that time? 

Mr. QuiGLEY. No. I was $57,000 short. 

The Chairman. So the letter, in saying that you then had, or that is 
the import of it, that you then had or still had $95,000, was in error ? 

Mr. QuiGLEY. Well, it would have to be, because I didn't have it 
That replaced it. 

The Chairman. Apparently it would have to be, unless there wab 
something else deposited in between. 

Mr. QuiGLEY. I must assume that that $57,000 replaced the original 
$57,000 that was used. 

The Chairman. Then you didn't have $95,000 until you got this 
letter with the check in it ? 

Mr. Quigley. Correct. 

The Chairman. That brought it back to $95,000? 

Mr. QuiGLEY. That is right. 

The Chairman. So the implication or the fact stated in the letter 
that you already had it was not a correct statement ? 

Mr. QuiGLEY. I returned $95,000 to them. 

The Chairman. Senator Curtis ? 

Senator Curtis. Were those checks that were transmitted with that 
letter that you just read into the record union checks ? 

Mr. Kennedy. We will get into that immediately, but the answer to 
the question is "Yes." 

Senator, those checks were not union checks, but the money used to 
purchase those checks — they were cashiers checks and bank drafts — 
the money used to purchase those checks was union money. 

Senator Mundt. Mr. Quigley, I am a little bit confused on what the 
counsel read in that letter, where he said, if I remember it correctly, 
and I will let him correct me if I am wrong— well, here is the letter. 

You have already in your possession a deposit of $95,000. 

You have testified to the fact that that was an erroneous statement, 
because while you had had the money previously you did not have it 
at this time. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3245 

I am curious about the rest of it. 

You have already in your possession a deposit of $95,000 which you are holding, 

which was the second falsehood, because you were not holding it and 
you did not have it ; is that correct ? 

Mr. QuiGLEY. That is correct. 

Senator Mundt. This is where I get confused : 

As a deposit for another property for the United Textile Workers of America — 
follow this now — 
which is identified as parcel Xo. 1. 

If you were holding $95,000, that is a big chunk of alfalfa hay, and 
you were holding it in connection with the parcel of property identified 
as parcel No. 1. Certainly you must have known what parcel No. 1 
was or this is the third falsehood of the letter, ^^^lich is it? 

Mr. QuiGLEY. That identification of them by parcels was a designa- 
tion given to them by them, not me. I presume from that letter that 
parcel No. 2 was the houses. I do not loiow what parcel 1 was. 

Senator Muxdt. You recognize the parcel No. 2 as the houses, but 
when they say parcel No. 1, you say 'T never heard of parcel No. 1." 

Mr. QuiGLEY. They never told me what parcel No. 1 was. 

Senator Mundt. It seems to me a member of this committee must 
draw the conclusion that this letter written about parcel No. 1 was 
written not for your eyes but for the eyes of the trustees and the 
auditors of the United Textile Workers of America, that they were 
talking about a i:)hantom, they were talking about a myth. If you 
were called in by the trustees or by George IVIeany, whose organization 
had investigated these operations, who said "Mr. Quigley, what about 
this Parcel No. 1 ?" You would have to tell them, I guess, as 3'ou told 
us, that you never heard of it, is that right ? 

Mr. QuiGLEY. I don't know what parcel No. 1 was. It was never 
identified to me. 

Senator Muxdt. So in one short sentence, they missed the truth 
about three different times. 

Mr. Kennedy. Did you write him back and return that money, the 
$95,000? 

Mr. QuiGLEY. Yes, I am sure I did. 

The Chairman. Before we move on, this transaction where they 
wrote you that letter, as I started to say a moment ago the copy of that 
letter in the files of the union would indicate that you had more money 
belonging to the union in your possession than 3^ou had, would it not ? 

Mr. QuiGLEY. Their letter to me would indicate it, yes. 

The Chairman. That is what I mean. 

I am wondering if, on receipt of the letter, you wrote them denying 
that or calling their attention to the inaccuracy of that statement ? 

Mr. QuiGLEY. No. I just took the $57,000 and returned $95,000 to 
them. I think the record will show a letter of transmittal by me. 

The Chairman. On May 15, this same date, apparently, I have 
here what purports to be a photostatic copy of a letter addressed to 
Mr. Lloyd Klenert, secretary-treasurer. United Textile Workers of 
America, Washington, D. C., showing a line, to be signed by the 
president of the Mutual Title Co. This copy does not bear any signa- 
89330— 57— pt. 9 3 



3246 IMPROPER ACTIVITIES IN THE LABOR FIELD 

ture, but I ask you to examine it and state if that is a ])hotostatic copy 
of the carbon copy of your letter back to them on the same date. 

(Document handed to witness.) 

The Chairman. The date of that is ]\Iay 15. 

Mr. QuiGLET. Yes, that is a copy of a letter. 

The Chairman, That may be made exhibit 13. 

Mr. QuiGLET. That is a carbon copy. 

(The document referred to was marked "Exhibit 13," for refer- 
ence and will be found in the printed record.) 

The Chairman. You did on that date return to them a check in the 
amount of $95,000, did you? 

Mr. QuiGLET. Yes, sir. 

The Chairman. I hand you what purports to be a photostatic copy 
of that check and ask if you identify it, please. 

(Document handed to witness.) 

Mr. QuiGLET. Yes, that is our check. 

The Chairman. That is the check where you returned the $95,000 
the same day, I assume, that j^ou received the letter you have been 
testifying about? 

Mr. QuiGLET. Yes, sir. 

The Chair:man. That photostatic copy of the check may be made 
exhibit No. 14. 

(The document referred to was marked "Exhibit No. 14," and will 
be found in the appendix on p. 3525.) 

The Chairman. Counsel may read the letter. 

Mr. Kennedt. It is dated May 15, 1952, the Mutual Title Co., Mary- 
land title examination, to Mr. Lloyd Klenert, secretary-treasurer, 
United Textile Workers of America', 818 13th Street Northwest. 

Dear Mb. Klenebt : Receipt is acknowledged of your letter of the 14th, where- 
in you enclose $57,000 in cashiers checks. .$30,000 drawn on the City Bank and 
$27,000 drawn on the Liberty National Bank, which, as you say, represents a 
deposit on certain property for the United Textile Workers of America, identi- 
fied as parcel No. 2, and which sum we are to hold until such time as a definite 
deal is closed for the purchase of a building for your organization. As per 
your request, we are enclosing herewith our check for $95,000 which was held by 
us as a deposit for certain property identified as parcel No. 1, and which trans- 
action did not materialize. 

Mr. QuiGLET. That, I do not believe, states the true facts. The 
$57,000 was put up to make up the money that was put into the houses, 
re<jardless of what this letter says. 

Mr. Kennedt. You wrote a false letter, did you not ? 

Mr. QuiGLET. Let me see it again. 

(Document handed to witness. ) 

The Chairman. Before you look at it, had you had any conversa- 
tions with them about this matter as to the fact that they were going 
to send you this $57,000, and then vou were to promptly return the 
$95,000 in that fashion ? 

Mr. QuiGLET. I don't recall whether they walked in with the 57 or 
gave them tlie 95. I don't know. 

The Chairman. I cannot understand the necessity or reason for 
bringing into you $57,000 more and having you immediately return 
the $57,000 plus the balance that you had on the other accoimt. Why 
would he ever give you the $57,000 ? 

Mr. QuiGLET. So he could get 95 back. 

The Chairman. Sir ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3247 

Mr. QiHGLEY. So he could get 95 back. 

The CHAIR3IAN. It seems pretty obvious, but why was it necessary 
to get 95 back in that fashion ? 

Mr. QuiGLEY. Because that is what they had put up originally. 

The Chairmax. They had gotten their property, had they not? 
They got $95,000 back plus the property is the way they were trying 
to figure it, is it not ? 

Mr. QuiGLEY. No, because 



The Chairman. They put up $95,000 to begin with, did they not? 

Mr. QuiGLEY. That is right. 

The Chairman. When got $57,000 in value from property they 
got a deed to, they had gotten $57,000 of the $95,000 back, had they 
not, already ? 

Mr. QuiGLEY. Xo, they hadn't got it back. They took the $57,000 
out of the $95,000. 

The Chairman. He got it back in property values. 

Mr. QuiGLEY. In equity in a property, yes. He didn't get it in cash. 

The Chairman. He got back the value, the $57,000, in property, 
did he not, or got back property of that value in lieu of the $57,000 
that he had deposited ? 

Mr. QuiGLEY. That is correct. 

The Chairman. It just looks like there are some shenanigans here. 

Mr. QuiGLEY. He wanted $95,000 back. I couldn't give him the 
equity back. I could give him $95,000 back if he gave me $57,000 to 
cover tlie equity. 

The Chairman. I cannot see him going to give you a check for 
$57,000 that day, and have you give him anotlier one for the $57,C00 
plus the balance that you had on hand . It is a strange transaction. 

Mr. QuiGLEY. He wanted the $95,000 returned to the union. 

The Chairman. He wanted a $95,000 check back from you. 

Mr. QuiGLEY. That is correct. 

The Chairman. Because the money originally put up, the $95,000, 
was to purchase a home for the union and not a home for the in- 
dividuals, that is the truth about it, is it not ? 

Mr. QuiGLEY. I don't know. 

Senator Mundt. Let me ask you this: Did you have any private 
conversations on the telephone about the context of these two letters 
before you received that letter from them ? 

]\Ir. QuiGLEY. I doubt it. 

Senator Mundt. It would seem to me that you almost must have had. 
I do not see how you would write the kind of letter 3^011 did in response 
to tlieirs unless there had been some kind of conversation between you 
in advance. 

IMr. QuiGLEY. I think their letter to me is dated the 14th of May and 
this is dated the next day. 

Senator Mundt. What is that ? 

Mr. QuiGLEY. This is dated the next day. That was dated the 14th. 

Senator Mundt. I am talking about the conversation you might 
have had with them before they wrote you this letter asking for the 
$95,000. It would seem quite obvious to me you must have had some 
conversations with them. 

ISIr. QuiGLEY. As far as I know I had no conversations with them 
before they came in witli this letter. 

The Chairman. Did they bring this letter to you personally ? 



3248 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. QuiGLEY. Yes, as I recall. Mr. Kleiiert brought the letter in. 

The Chairman. He brought it in personally? 

Mr. QuiGLEY. Yes, sir. 

The Chairjman. You stamped it received on May 15, did you not ? 

Mr. QuiGLEY. If that is the stamp that is on there, yes. 

The Chairmax. I will let you look at it again. 

Mr. QuiGLEY. That is all right, if it says the 15th. 

Senator Mundt. At that time, in your office, you must have had 
some conversation with them before you dictated your reply, which 
was probably dictated and carried out by them in the office. 

Mr. QuiGLEY. Possibly while he waited, yes. 

Senator Mundt. You must have had some conversation about the 
kind of letter you would write back, because, obviously, if you were 
writing it without some conversation, your letter creates some extenu- 
ating circumstances for your title company which you would not want 
to get involved in, if you did not have the $95,000 that you said you 
had, if the books look wrong. I can understand their sajdng "Look, 
we are kind of in a jam, and you can help us out, if you will write the 
letter this way," then you might write the letter that way. 

But I do not understand that a man in your capacity, getting a letter 
through the mail, would have answered it in quite the language that 
you used, because you reiterated a statement of falsehood which you 
knew was not correct, because you knew they did not have any parcel 
No. 1. You have so testified here today, and in that letter you refer to. 

Mr. QuiGLEY. That was taken from this letter and referred to the 
parcels because he refers to them as parcels. 

Senator Mundt. But it was also an implied recognition of the fact 
that 3^ou had $95,000 of the money which you did not have. A man 
living in this day and age, when you have income-tax collectors look- 
ing over both slioulders, is not about to write that kind of letter unless 
he has some understanding. 

Mr. QuiGLEY. The income-tax man looked this matter over. 

Senator Mundt. I would think so, on the basis of the two letters. 

The Chairman. It seems pretty apparent that the purpose of send- 
ing over this last $57,000 in cashier's checks and writing you a letter 
like that, and getting a reply from you such as you wrote, that the 
whole purpose of it was to try to make it appear on the books of the 
union that the original $95,000 they had deposited with you had been 
returned, that that was the purpose of writing the letters that way. 
Is that not correct ? 

Mr. QuiGLEY. That is possible, yes. 

The Chairman. What else is possible, if that is not the whole reason 
for it? 

Mr. QuiGLEY. They wanted to get $95,000 back into the union and 
this is the way they accomplished it. 

The Chairman. That is right, they wanted to get $95,000 back into 
the union. 

Mr. QuiGLEY. That is right. 

Mr. Kennedy. Could I see the letters ? 

Let me ask you this : 

Receipt is acknowledged of your letter of the 14tli, wherein you enclose 
$57,000— 

which you say — 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3249 

represents a deposit on certain property for the United Textile Workers of 
America, identified as parcel No. 2, and which sum we are to hold until such 
time as a definite deal is closed for the purpose of a building for your organization. 

Is that true? Did you do that? Did you hold that $57,000 as a 
deposit for the purchase of certain property ? 
Mr. QuiGLEY. No. 
Mr. Kennedy. For the purchase of a building for the union? 

Mr. QuiGLEY. No, 

Mr. Kennedy. Why did you write that ? 

Mr. QuiGLEY. I am trying to find a reason for writing it. I could 
have answered it in 1952, but I can hardly do it now. 

Mr. Kennedy. Did you not have an agreement with Klenert, didn't 
you have conversations with him, and didn't you agree to write tliis 
letter in order to fool the union and fool the trustees of the union ? 

Mr. QnoLEY. I don't think there was any attempt to fool them. 
They knew 95 had been taken out, and they knew 95 went back. 

Mr. Kennedy. You knew this was a union check that had been 
used for the purchase of personal property for Mr. Klenert and Mr. 
Valente, and then you lent credence to that by writing a letter such 
as this, which was completely misleading and false, Mr. Quigley. 

Mr. QuiGLEY. It apparently hasn't misled anybody. 

The Chairman. Sometimes attempts do not succeed. 

Is that what you are saying? 

Mr. QuiGLEY. 'Well, sometimes we do foolish things. Five years 
later they look foolish, but not at the time. 

Senator Mundt. It seems to me, Mr. Quigley, that what we have 
here is quite an understandable situation, as far as you were concerned. 
You were doing business with these two men, unknown to you, you 
knew nothing about them, but they were pretty substantial clients 
or customers at the time. So they bring this letter over in hand and 
they discuss with you their problem, and together you work out the 
kind of reply that they wanted you to make. At the time 3'ou did not 
think there was anything improper about it, and if you were going 
to be helping a client, you would go along with them. Is that the way 
it happened ? 

Mr. QuiGLEY. If I could have helped them, I would liave. That 
is my nature. 

Senator Mundt. Surely. And the reason they brought it over in 
person was because they wanted to discuss with you the parts of the 
letter Avhich you cannot now understand about parcel No. 1, but they 
said "Loolv, if you will fix this up with the union, it will be all right" 
and you had no reason to suspect them, as you knew they were cus- 
todians of the union. After reading their letter in your office, you 
discussed with them the nature of your reply, you dictated the reply, 
you signed it, and they carried it back to the office and you thought 
liiat was about the end of it. Is that about what happened? 

Mr. QuiGLEY. I would say yes. 

Senator Mundt. Of course it is. 

Mr. Kennedy. And based upon this request of Mr. Klenert and 
Mr. Valente, Mr. Quigley, you wrote a false letter, is that right? 

Mr. QL^GLEY. I am not going to admit I wrote a false letter. 

Mr. Kennedy. Well, is it true ? 

Mr. QuiGLEY. As far as I know it is true, yes. 



3250 IMPKOPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Was that $57,000 used as a deposit for the building? 

Mr. QuiGLEY. No, it was used to replace the $57,000 that was used 
to buy the houses. 

Mr. Kennedy. Is it true, then, this letter ? 

Mr. QuiGLEY. The letter is incorrect, then. It doesn't 

Mr. Kennedy. The letter is not true, is it ? 

Mr. QuiGLEY. Well, I am not going to say it is not true. 

The Chairman. Let me ask you a question. This is your letter 
to them : 

Receipt is acknowledged of your letter of the 14th wherein you enclose $57,000 
in cashiers' checks, $30,000 drawn on the City Bank and $27,000 drawn on the 
Liberty National Bank. 

That part of the letter is factually true, is it not ? 
Mr. QuiGLEY. Yes, sir. 
The Chairman. You had received it ? 
Mr. QuiGLEY. Yes. 
The Chairman (reading) : 

Which, as you say, represents a deposit on certain property for the United 
Textile Workers of America, identified as parcel No. 2 — 

and then there is this other part of the letter. That part up to there 
I assume is true — 

and which sum we are to hold until such time as a definite deal is closed for the 
purchase of a building for your organization. 

Is that part of the letter true ? 

Mr. Qt^igley. That is not true, because we didn't hold the money. 

The Chairman. You knew when you wrote the letter you were not 
going to hold the money, didn't you ? 

Mr. QuiGLEY. Evidently, yes. 

The Chairman. Therefore, an auditor reading this letter, auditing 
1 he books of the company, would certainly have a right to assume that 
3'ou had $57,000 of the union money in your possession, holding it ? 

Mr. QuiGLEY. I did not know that that letter gave that import. 

The Chairman. Can you get any other import from it ? 

Mr. QuiGLEY. Wei], not now; no. 

The Chairman. Thank you. 

Mr. Kennedy. Then the second paragraph : 

As per your request, we are enclosing herewith our check for $95,000 which 
was held by us as a deposit for certain property identified as parcel No. 1, and 
which transaction did not materialize. 

That statement also is not true ? 

Mr. QuiGLEY. It was originally put up for parcel No. 1. The $57,000 
was taken out of that to settle parcel No. 2, which is the houses. I 
don't recall anything beyond that. 

Mr. Kennedy. Is that statement true ? 

Mr. QuiGLEY. If it is in the letter, it would have to be — I will have 
to let it go into the record. 

The Chairman. You would agree at least that it is misleading as 
to facts, wouldn't you? 

Mr. QuiGLEY. As it is now read, I would say yes. 

The Chairman. As it was written then, would you say yes ? 

Mr. QuiGLEY. It was not intended to mislead anybody. I can as- 
sure you of that. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3251 

Tlie Chairman. I didn't say that. But it is misleading as a matter 
of fact now and then, now as you read it and then as you wrote it ? 

Mr. QuiGLET. I didn't intend it that way. 

The Ch^ukjmax. I don't know how you could have said it much 
stronger. 

Mr. Kennedy. You might not have intended it, but it is misleading 
as to fact ? 

Mr. QuiGLEY. If that is the way you construe it, it will have to be 
construed that way is all. 

Mr. Kennedy. Did you write a rough copy of the letter prior to the 
time you sent this letter out ? 

Mr. Quigley. I don't recall. 

The Chairman. I hand you here what appears to be a letter, un- 
signed, dated May 15, 1952, addressed to United Textile Workers of 
America, bearing your name, typewritten, as president. I will ask 
you to examine this and see whether you identify this as a photostatic 
copy of a letter you prepared on the same date ? 

(The document was handed to the witness. ) 

Mr. Quigley. I don't know whether this letter went out or whether 
the other letter returning the $95,000 is the one that did go out. 

The Chairman. Do you know which one went out ? 

Mr. Quigley. I am presuming it was the other one and not this, 
because that is 

The Chairman. Did you not write that one first, and then they sug- 
gested that you rewrite the letter which you delivered to them, the one 
that we have been discussing? 

Mr. Quigley. I don't know why the switch, whether it was at their 
suggestion or not. I don't know. 

The Chairman. Do you know which letter you wrote first ? 

Mr. Quigley. No, I wouldn't. 

The Chairman. You don't knoAV which one you wrote first ? 

Mr. Quigley. No. 

The Chairman. Let's read this one, if you identified it. We will 
make it exhibit No. 15. 

(The document referred to was marked "Exhibit No. 15" and fol- 
lows below.) 

The Chairjian. Let's read it and see if we can unravel that aspect 
of it. This letter is dated May 15, 1952, United Textile Workers of 
America, 818 18th Street NW., Washington 5, D. C. Re lot 1, 
plot 18, and parcel Rock Creek Hills, Montgomery Countv, Md., MTC 
No. 2223, Klenert and Valente. 

Gentlemen : I am returning check for .$95,000 which you deposited with the 
company as the deposit or downpayment on a building for your organization. 
Inasmuch as it appears tliat there might be some delay in closing tlie transac- 
tion, we thought it advisable to return these funds, and we will call on you 
when the transaction has been completed. 
Very truly yours, 

Mutual Title Co.. 

Martin J. Quigley, President. 

Can you tell us now, after hearing tlie letter read, which you wrote 
first? 

Mr. Quigley. I would presume I wrote that one first and then did 
not use it. 

The Chairman. And why did you change and write the other one 
in the form of misleading statements that it contains ? 



3252 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. QuiGLEY. Possibly at their suggestion. I don't know. 
The Chairman. At their suggestion ? 
Mr. QuiGLEY. Yes. 
The Chairman. Thank you, 

Mr. Kennedy. This letter that you were intending to send out 
originally was equally misleading, was it not ? 

Inasmuch as it appears that there might be some delay in closing the transac- 
tion, we thought it advisable to return these funds and we will call upon you 
when the transaction has been completed. 

That is not in accordance with the facts at all, is it ? 

Mr. QuiGLEY. No. My main objective was to get the $95,000 back 
to the union which they requested me to get back. 

Mr. IvENNEDY. And then the reference here as to Rock Creek Hills. 
Rock Creek Hills are the two pieces of property of Mr. Klenert and 
Mr. Valente, is that right ? 

Mr. QuiGLEY. We only had one case. We didn't have parcel No. 1 
identified. We had no way to identify it, so we threw it into one case 
number. 

Mr. Kennedy. And that refers to the two pieces of property pur- 
chased by Mr. Klenert and Mr. Valente ? 

Mr. QmoLEY. That is how we could identify the transaction. 

Mr. Kennedy. Isn't it a fact that from the beginning, the $95,000 
was going to be used to purchase these two homes for Mr. Klenert and 
Mr. Valente, that ultimately it was decided to use only $57,000 of it, 
decided on May 5, 1952, and subsequently, 10 days later, it was decided 
to handle the transaction in a different way, and return the $95,000, 
and get a new $57,000 back, and that you were a part of all of this, 
that you knew about it ? 

Mr. QuiGLEY. It was not 10 days later. The settlement was made 
on the 5th of May. 

Mr. Kennedy. And these moneys were returned on May 15? 

Mr. QuiGLEY. That is right. 

Mr. Kennedy. You knew about this, and knew it was a subterfuge 
to hide this from the union members, did you not ? 

Mr. QuiGLEY. This did not arise until the dates on those letters, 
which was 10 days later. It had nothing to do with the original set- 
tlement of the houses. 

Mr. Kennedy. Wasn't it understood right from the beginning that 
the $95,000 was going to be used to purchase 2 homes for Klenert 
and Valente, that this idea of buying a building for the union had 
no basis in fact ? Isn't that correct, Mr. Quigley ? 

Mr. QuiGLEY. If they had an idea to use the $95,000 to purchase the 
houses, they must have changed their minds. I don't know. 

Mr. Kennedy. There was never any building identified, you never 
took them to any building which they had put this money down for 
as deposit, is that right ? 

Mr. QuiGLEY. That is correct. 

(At this point, the chairman withdrew from the hearing room.) 

Mr. Kennedy. Wasn't it understood, and you were a part of it from 
the beginning, that the $95,000 of union funds was going to be used 
to purchase these 2 pieces of property ? 

Mr. QuiGLEY. It was not used to buy— they are the ones that would 
say whether it was to be $95,000 or $57,000, not me. I could handle 
it either way they wanted. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3253 

Mr. Kennedy. But the $95,000 of union funds was going to be used 
to buy these 2 pieces of property for Mr. Klenert and Mr. Valente? 

Mr. QuiGLET. They deposited $95,000. Whether it was to be used, 
the entire amount, to buy the houses, I don't know. They would have 
to answer that. 

Mr. Kennedy. You knew they wanted to hide these transactions, 
and that is why you w^rote these letters ; is that correct ? 

Mr. Quigle'y. I knew they wanted to get the money back into the 
union. 

Mr. Kennedy. And they did not want anyone to know how the 
money had been used, or how this new $57,000 was to be used ? 

Mr. QuiGLEY. Whether they wanted anybody to know on that, I 
don't know. They will have to answer. 

Mr. Kennedy. They must have told you that, or you wouldn't have 
written that kind of a letter ? 

Mr. QuiGLEY. They must have told me this way, and that is the way 
I did it. ■ 

Mr. Kennedy. And didn't they tell you and didn't you know that 
the purpose of it was to hide the transactions ? 

Mr. QuiGLEY. I am not the guardian of their conscience. 

Mr. IvENNEDY. I am not asking you if you are the guardian of it. I 
am asking : Isn't it a fact that you knew that these letters were to be 
used to hide the transaction ? 

(At this point the chairman entered the hearing room.) 

Mr. QuiGLEY. I didn't consider it any of my business. If they 
wanted to get the money back into the union and use this subterfuge 
to do it, that was up to them. 

Mr. Kennedy, Mr. Quigley, I think it is very much your business. 
You were writing false letters to an organization and letters you knew 
to be false. You can't say it wasn't any of your business. 

Mr. QuiGLEY. It wasn't any of my business. If I made it my busi- 
ness, thev would have told me promptly that it was not. 

Mr. Kennedy. You would have lost a transaction, you would have 
lost a business deal. 

Mr. QuiGLEY. I am still in business. That wouldn't have broken 
me. 

Mr. Kennedy. But you would have lost this transaction. 

Mr. QuiGLEY. They couldn't recall the deal then. The settlement 
was made on May 5. _ 

Mr. Kennedy. Have you received any business from the union 
since this transaction ? 

Mr. QuiGLEY. What kind of Inisiness do you mean ? 

jMr. Kennedy. Any kind of business ? 

Mr. QuiGLEY. Title business ? 

Mr. Kennedy. No, just any kind of business. 

Mr. Quigley. I have written some insurance for them; yes. 

Mr. Kennedy. For whom ? 

Mr. Qlt;gley. For the Textile Workers of America, and some auto- 
mobile and fire insurance for Mr. Klenert. 

Mr. Kennedy. And had you wi-itten any insurance, insurance busi- 
ness, for the union or for Mr. Klenert prior to this transaction ? 

Mr. QuiGLEY. ISTo. I never met them until this transaction. 

Mr. Kennedy. How much does that insurance business amount to 
that vou have written for the union since this transaction ? 



3254 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. QuiGLEY. I don't know. 

Mr. Kennedy. When was the first arrangement made so that you 
could have the insurance ? 

Mr. QuiGLEY. In this particular settlement, I arranged to have the 
equity covered for fire and extended coverage. 

Mr. Kennedy. What about the union's business ? 

Mr. QuiGLEY. Some time later, in maybe January or February, Mr. 
Klenert called me and asked me if I wasn't an insurance broker, and 
I told him yes, that I had written the insurance on his house. He said 
he was discharging the broker in this fidelity bond matter, and he 
could have me named as broker. 

My name was evidently submitted to the Continental Casualty Co., 
and I have collected commissions from them for 4 years. 

Mr. Kennedy. Mr. Chairman, we cannot finish with Mr. Quigley 
at this time. He took part in a later transaction. If it is possilDle, 
could we put the checks in now ? 

This is the $57,000. _ ^ ^ 

The Chairman. The Chair observes the time. We would like to 
quit by 5 o'clock. Will that permit us to do that ? 

Mr. Kennedy. If we put these checks in, we can quit by 5 o'clock. 

The Chairman. Mr. Quigley, apparently we cannot conclude with 
you this afternoon, so you will return tomorrow afternoon at 2 o'clock. 

Mr. Kennedy. Could he identify these checks? 

We will put the checks in with another witness, the cashier's checks 
from the banks. 

The Chairman. Mr. Quigley, I hand you 4 photostatic copies of 
checks, all dated May 15, 1952, 2 of them in the amount of $7,000 each, 
1 in the amount of $8,000 and the other in the amount of $5,000, drawn 
by Wales H. Jackson on the Libertv National Bank of Washington, 
D.C. 

They are actually bank drafts instead of checks. They aggregate 
$27,000. I ask you to examine the photostatic copies of the bank drafts 
and see if you identify them. When you have examined them, if you 
identify them and so state, then explain what they are and what your 
connection with them is. 

(Documents were handed to the witness.) 

Mr. Quigley. I think these are the $27,000 referred to in that letter. 

The Chairman. Those are the checks you received to make up the 
$27,000 referred to in the letter as from the Liberty National Bank ? 

Mr. Quigley. They are cashiers checks on the Liberty Bank: yes. 

The Chairman. Those may be identified as exhibit No. 16-A, B, C, 
and D. 

(The documents referred to were marked "Exhibits Nos. 16-A 
through 16-D," for reference and will be found in the appendix on 
pp. 3526-3529.) 

The Chairman. The Chair now hands you 3 checks, photostatic 
copies of checks, dated May 14, 1952 ; 1 in the amount of $10,000, 1 in 
the amount of $7,000, 1 in the amount of $13,000. They are cashiers 
checks, drawn on the City Bank of Washington, D. C. 

I will ask you to examine these checks, photostatic copies of checks, 
and see if you identify them. If so, state what they are and your 
connection with the transaction. 

(Documents were handed to the witness.) 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3255 

Mr. QuiGLEY. These are the checks that are mentioned in that letter, 
totaling $57,000. 

The Chairman. Those total $30,000, is that correct ? 

Mr. QuiGLEY. That is right. These are $30,000 and the others are 
$27,000, making a total of $57,000. 

The Chairman. These will be made exhibit No. 17-A, B, and C. 

(The documents referred to were marked "Exhibits Nos. 17-A 
through 17-C" for reference and will be found in the appendix on 
pp. 3530-3532.) 

The Chairman. The checks that were made exhibit 16 that you ex- 
amined totaled $27,000 and these checks you have just examined, ex- 
hibit 17 in the record, are the checks that made up the $57,000 which 
you received on May 15? 

Mr. QuiGLEY. Yes, sir. 

Mr. Kennedy. Mr. Chairman, I wonder if we can get these other 
documents in. 

Did you make up a second deed of trust on Mr. Klenert's property ? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. And Mr. Valente's, also? 

Mr. QuiGLEY. Yes. 

Mr. Kennedy. Who took the second deed of trust? 

Mr. QuiGLEY. We created those trusts for them for the purpose of 
their using them as collateral to borrow money. 

Mr. Kennedy. Who took the trust? 

Mr. QuiGLEY. They did. 

Mr. Kennedy. Who was beneficiary of the trusts? 

Mr. QuiGLEY. The beneficiary named is a straw party who endorsed 
the notes witliout recourse. 

Mr. Kennedy. Was it an employee of yours? 

Mr. QiHGLEY. An employee of mine; yes. 

Mr. Kennedy. She took the trust? 

Mr. QuiGLEY. No. She was merely a conduit to title. She en- 
dorsed it without recourse and handed it to them. It was their prop- 
erty to use as collateral and do with as they saw fit. 

Mr. Kennedy. The records of Montgomery County would indicate 
there was a second trust? 

Mr. QuiGLEY. That is right. If I recall it is $15,000 on the Klenert 
house and $10,000 on the Valente house. 

Mr, Kennedy. When, in fact, there was no second trust; is that 
right? 

Mr. QuiGLEY. There was a second trust. 

Mr. Kennedy. Owed to himself ? 

Mr. QuiGLEY. If I own a piece of real estate and I want to put a 
trust on it to take it out and use it as collateral, that is perfectly legi- 
timate business, and it is done every day. 

Mr. Kennedy. Anybody going through the records of Montgomery 
County would assume that Klenert and Valente did not have nearly 
the money in this property that the records would indicate; is that 
right ? 

Mr. QuiGLEY. That is right. 

The Chairman. I hand you what purports to be a photostatic copy 
of the deed of trust. Will you examine it and see if this is the deed 
of trust about which you have been testifying? 



3256 IMPROPER ACTIVITIES IN THE LABOR FIELD 

(A document was handed to the witness. ) 

Mr. QuiGLEY. Yes; that is a trust for $15,000 on the Klenert prop- 
erty. I think you will find one for ten on the Valente property. 

The Chairman. As I understand, it is made out to an employee in 
your office ? 

Mr. QuiGLEY. That is correct. 

The Chairman. And immediately thereafter endorsed by her back 
to the maker of the mstrument ? 

Mr. QuiGLEY. That is right. 

The Chairman. So, therefore, there was actually no deed of trust 
in the sense that the maker of that deed of trust owed that money on it? 

Mr. QuiGLEY. If I own a piece of property, I can put a trust on it 
and go out and borrow money on it. It is my note, my property. 

The Chairman. I understand that, but the minute she endorsed 
that paper back to the maker of it, there was no actual debt or obliga- 
tion, unless vou can sav, "I owe mvself so much money." Is that not 
true? 

Mr. QuiGLEY. He has it in his hand to negotiate the note at any 
time. He can go out and borrow $10,000 on it, $5,000, paj' it off and 
get the note back. 

The Chairman. But until he does that, there is actually no obliga- 
tion there, is there ? 

Mr. QuiGLEY. No, there would not be any obligation until he hypo- 
thecated the note. 

The Chairman. That may be made exhibit No. 18. 

(The document referred to was marked "Exhibit No. 18" for refer- 
ence and may be found in the files of the select committee.) 

The Chairman. Are there any further questions of this witness ? 

I will hand you what purports to be the original of a note for $10,000. 
I present it to you and ask you to examine it and state if you iden- 
tify it. 

(A document was handed to the witness.) 

Mr. QuiGLEY. Yes. This is a note for $10,000 Mr. Valente put on 
at the same time Mr. Valente put on the other trust. 

The Chairman. That represents a transaction on the other piece of 
property, the Klenert, or is that Valente ? 

Mr. QuiGLEY. This is Valente. 

The Chairman. The one that you have in your hand now represents 
Valente ? 

Mr. QuiGLEY. That is right. 

The Chairman. How was that handled ? That is a note made out, 
is it not ? 

Mr. QuiGLEY. Yes. That note was endorsed to somebody by this 
straw party, Laida KJreuz, and was evidently negotiated. The party 
who bought it or loaned him the money is the assignee of the note. 
That note has actually been negotiated. 

The Chairman. That note has actually been negotiated ? 

Mr. QuiGLEY. The endorsements would indicate that; yes sir. 

The Chairman. That may be made exhibit No. 19. 

(The document referred to was marked "Exhibit No. 19" for refer- 
ence and will be found in the appendix on pp. 3533-3535.) 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3257 

Senator Mundt. What I have in my hand is the $15,000 from Mr. 
and Mrs. Klenert to M. Parker Xohan and Martin J. Quigley. Are 
those two people employees in your office ? 

Mr. Quigley : I am Martin J. Quigley, and Parker Nolan was a real- 
estate broker. We use deeds of trust in this jurisdiction. 

Senator Muxdt. You said they gave the name of a strawman. 

Mr. Quigley. That is the payee on the note, Laida Kreuz. 

Senator Mundt. This is recorded, apparently. 

Mr. Quigley. In Montgomery" County; yes, sir. 

Senator ]Mundt. What would be the purpose of recording it if it 
had not been negotiated \ 

Mr. Quigley. Well, if you take tlie note out to borrow money on it, 
you must show that it is recorded. You must show that it is a good 
second lien on the property. 

Senator Mundt. You record it before you actually make a loan ? 

Mr. Quigley. Before they negotiate it; yes, sir. The practice here 
is, it is always the papers go on record first and are run down, to see 
that there are no intervening liens, judgments, tax liens, or anything 
like that, and then you run the record through this instrument and 
then you are in a good position to certify it is ni a good trust. 

Senator Mundt. Is this a customary practice, to do it this way? 

Mr. Quigley. Yes, sir; that is the regular practice. We create 
second trusts eA-ery day. A man comes in to us and wants to borrow 

Senator Mundt. I mean in exactly this manner, Avhere it is assigned 
back without recourse ? 

Mr. Quigley. Yes, sir. 

Tlie Chaikman. Mr. Quigley, we are going to i-ecess until 2 o'clock 
tomon-ow afternoon. It will not I)e necessary for you to be back at 
that time, but you will remain under subpena subject to call when we 
do need you before we conclude this series of hearings. 

Mr. Quigley. I would appreciate it if I could remain in my office 
subject to call. I will be here within 30 minutes from the time you 
want me. 

The Chairman. The committee will now recess until 2 p. m., to- 
morrow afternoon. 

(Whereupon, the hearing in the above-entitled matter was recessed 
at 4 : 40 p. m., to reconvene at 2 p. m., of the following day.) 

(Members of the select committee present at the taking of the recess : 
Senators McClellan, Mundt, and Curtis.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



THURSDAY, JULY 18, 1957 

United States Senate, 
Select Committee on Improper Activities 

IN the Labor or IVIanagement Field, 

Washington, D. C. 

The select committee met at 2 p. m., pursuant to Senate Resolution 
74, agreed to January 30, 1957, in the caucus room. Senate Office 
Building, Senator John L. McClellan (chairman of the select com- 
mittee presiding. 

Present: Senator John L. McClellan, Democrat, Arkansas; Sena- 
tor Irving ]M. Ives, Kepublican, New York ; Senator John F. Kennedy, 
Democrat, Massachusetts; Senatoi- Barry Goldwater, Republican, 
Arizona; Senator Karl E. Mundt, Kepublican, South Dakota; Senator 
Carl T. Curtis, Eepublican, Nebraska. Also i)r(-sent: Robert F. Ken- 
nedy, chief counsel to the select committee: Ralph Mills, assistant 
counsel; Morton E. Henig, investigator; Alp house F. Calabrese, in- 
vestigator ; Ruth Young Watt, chief clerk. 

(Membeis of the committee present at the convening of the session: 
Senators McClellan, Ives, Kennedy, Goldwater, Mundt, and Curtis.) 

The Chairman. The committee w411 be in order. 

We will resume the hearings that we recessed yesterday in the 
Textile Workers of America inquiry. 

Proceed, Mr, Counsel, 

Mr. Kennedy, I would like to call Mr. Calabrese, 

The Chairman. Mr. Calabrese, you have been previously sworn, 
and you may proceed, Mr. Kennedy. 

(At this point, Senator Keunedy withdrew from tlie liearing room.) 

TESTIMONY OF ALPHONSE F. CALABRESE 

Mr. Kennedy, You have been working and making an investiga- 
tion of the United Textile Workers of America, have you not, a staff 
investigation? 

Mr. Calabrese. Yes, jointly Avith Mr. Ralph INIills of our staff, 
and Morton Henig, that is correct. 

Mr. Kennedy, And that investigation has been going on for some 
10 weeks, is that right '? 

Mr. Calabrese. Possibly three months, that is correct. 

Mr. Kennedy, Now, you have made an investigation and study of 
some of the bank accounts and some of the checks that we are in- 
terested in, is that right ? i 

Mr. Calabrese. That is correct. 
-l\m<J :\{i ; •>friii:! r;i;v? - 00,oC$ . 3259 



3260 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. Kennedy. And you have some of those accounts in front of you ? 

Mr. Calabrese. I do. 

Mr. Kennedy. Specifically, do you have the records concerning the 
original $95,000 that was used for the alleged deposit for the purchase 
of a building for the textile union? 

Mr. Calabrese. Yes, sir, I do. 

The Chairman. From what records are you testifying, Mr. Cala- 
brese '? Where were they procured ? 

Mr. Calabrese. I have a transcript of the ledger account of the 
United Textile Workers of America from the period 1949 to 1953, 
that is the time when the United Textile Workers of America had 
their accounts with the City Bank. 

I have also, I might add, when I testified yesterday, no microfilm 
made of the checks drawn on this account. There are none avail- 
able, and, of course, the union themselves, the officials of the union 
have advised that the records during 1952 have been destroyed. 

Now, I have 

Mr. Kennedy. Specifically, also, you have the minutes of one of 
the meetings, or some of the meetings of the textile union during 
this period ? 

Mr. Calabrese. That is correct. 

The Chairman. Ai-e those minutes obtained from their files, and 
from their records ? 

Mr. Calabrese. From the files of the United Textile Workers of 
America, that is correct. 

The Chairman. Now, the first minutes that we are interested in is 
April 25, 1952, is that correct ? 

Mr. Calabrese. That is correct. 

The Chairman. What does that minute state, in substance ? 

Mr. Calabrese. It is located on pages G and T and it is, very briefly, 
a resolution by the executive council of the United Textile Workers 
of America, at a meeting at the Sherry-Frontenac Hotel in Miami 
Reach, April 25, 1952. The resolution states as follows : 

In line with tlie above, the following resolution was adopted by unanimous 
vote of the council ; that the international secretary be authorized to convert 
into cash $95,000 worth of defense bonds now entitled to the United Textile 
Workers of America, for the purpose of purchasing a building for the organiza- 
tion, and be it further resolved that pending the conversion into cash of said 
defense bonds, that the secretary-treasurer be authorized to negotiate a loan 
from the City Bank in the amount of $95,000. 

The Chairman. That document may be made exhibit 20. 

(The document referred to was marked "Exhibit 20" for reference 
and will be fovmd in the appendix on p. 3536.) f 

The Chairman. I believe that you read all of it into the record. 

Mr. Kennedy. Now, was there, subsequently on May 1, 1952, a loan 
made of $95,000? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. From the City Bank ? 

Mr. Calabrese. That is correct, to the United Textile Workers of 
America. 

Mr. Kennedy. That money was subsequently used as a downpay- 
ment for these two homes, is that right, for the purchase of these 
homes ? 

Mr. Calabrese. $95,000 the next day was turned over to Mr. Quig- 
ley, as he testified. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3261 

Mr. Kennedy. Aiid $57,000 of that was used for the payment on 
these two homes of Mr. Klenert and Mr. Valente ? 

Mr. Calabrese. Mr. Quigley so testified. 

Tlie Cfiairzmax. They borrowed, or the union borroAved this 
$95,000 from the bank ? 

Mr. Calabrese. That is correct. 

The Chaikisian. It is a union loan ? 

iSIr. Calabrese. It is a union loan. 

The CiiAiRMAx. That is the same $95,000 that was deposited with 
Mr. Qui^ley ? 

Mr. Calabrese. It was $95,000 deposited in their account and then 
a check was drawn. 

The Chairman. $95,000 was deposited in whose account ? 

Mr. Calabrese. The United Textile Workers of America account. 

The Chairman. It was deposited, the money procured by the loan?' 

JNIr. Calabrese. That is correct. 

The Chairman. It was deposited in the textile union's account, 
and then what happened to it ? 

Mr. Calabrese. On tlie followiuir day, there is a debit of $95,000 
to that account. "We do not have the clieck, but ]Mr. Quigle}', j'esterday 
111 his testimony, put into evidence a deposit slip showing that Mr. 
Quigley put into the trustee account of the ^Mutual Title Co. $95,000 
obtahied from the I'nited Textile Workers of America. 

The Chairmax. How many days was that after the loan was ob- 
tained and the deposit made to tlie union ? 

Mr. Calabrese. That is 1 day. 

The CifAiRMAX. One day t'()il(>\viii<x^ 

Mr. Calabrese. Yes, sir. 

The Chairmax. All right; I just Avanted to get the record com- 
pleteh-^ clear on it. 

Mr. Kenxedy. Xow, subsequently, in ]\Iay of 1952, Avas there an- 
other loan procured of $100,000 ? 

Mr. Calabrese. I am sorry. 

Mr. Kennedy. Subsequently, on May lo, 1052, was there another 
loan for $100,000 secured from a bank ? 

Mr. Calabrese. Yes; that is correct. 

Mr. Kennedy. Fi-om the Libert}- National Bank ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Would you tell us what happened to that ? 

That is Maj 18 ? 

Mr. Calabrese. Yes. 

Mr. Kennedy. That is 13 days after this other loan was secured? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Is that right ? 

Mr. Calabrese. Yes. 

Mr. Kennedy. The first one was May 1 from the City Bank and this 
is May 13 from the Liberty National Bank. 

Mr. Calabrese. Yes, sir. If I might state, the records of the 
Liberty National Bank which were supenaed indicated that on JNIay 
8, 1952, under the name of United Textile Workers of America, a loan 
was applied for in the amount of $100,000, interest rate 4 percent, time 
60 days, and to be used for "purchase of new quarters but old building." 

This was an unsecured loan backed up by over $100,000 worth of 

89330— 57— pt. 9 4 



3262 IMPROPER ACTIVITIES IN THE LABOR FIELD 

additional series F Government bonds, which were owned by the 
union. 

The Chairman. It was not unsecured, but it was secured by the 
bonds ? 

Mr. Calabrese. It is considered by the bank unsecured. However, 
they had series F bonds they were going to redeem for the union and 
then apply to the return of the loan. 

The Chairman. So it was actually, in eilect, a cashing in of tlie 
bonds, is that what it amounted to ? 

Mr. Calabrese. That is correct. Now, accompanying this applica- 
tion is a certification by the president of the union, Mr. Anthony 
Valente, in essence, stating that he had authority to make the loan. 

The Chairman. To borrow the money, you mean ? 

Mr. Calabrese. Yes, to borrow the money, on the basis of an Octo- 
ber 1946 executive council meeting, and resolution. 

So that what you have is a resolution of April 25, 1952, allowing 
the UTWA to make a loan of $95,000 from the City Bank and then 
you have this subsequent loan which was finally made on May 13, on 
which Mr. Valente based authority for making this loan, on the Octo- 
ber 1946 resolution of the executive council. 

The Chairman. They only had one resolution, and that resolution 
specified $95,000? 

Mr. Calabrese. For the purchase of a new headquarters. 

The Chairman. For the union ? 

Mr, Calabrese. Yes, sir. 

The Chairman. And that $95,000 was borrowed ? 

Mr. Calabrese. That is correct. 

The Chairman. And then, subsequently, just a few days later, 
Valente takes the same resolution 

Mr. Calabrese. An earlier resolution, October 19, 1946, 

The Chx^^irman. In October of 1946, and he takes that resolution 
and borrows another $100,000 ? 

Mr, Calabrese. That is correct. 

The Chairman. Both of them ostensibly for the same purpose ? 

Mr, Calabrese. That is correct. 

The Chairman. And the first one was not used for that purpose. 

Mr, Calabrese, No, 

The Chairman. It was used to buy residences for the two officers ? 

Mr. Calabrese. That is correct. 

The Chairman. Now we have it straight. 

Mr. Kennedy. We want to get into how this other second loan of 
$100,000 was used. Do you have some evidence and information on 
that? 

Mr. Calabrese. I have a transcript of the ledger account of the 
union's account at the Liberty National Bank. 

The Chairman. Just a moment. Let us make these documents 
from which you have read there, exhibits. You have read the per- 
tinent parts of them, but the documents will be made exhibits 21 and 
22, the two documents the witness has read from, for reference, 

■ (The documents referred to were marked "Exhibits 21 and 22," for 
^eferenc^'^- and will be found in the appendix on pp, 3537-3538,) 

The Chairman, I am anxious to keep the record straight, 

Mr. Calabrese. The next documents which I have, four sets of 
copies obtained from the Liberty National Bank, show the applica- 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3263 

tion card of the United Textile Workers of America, and with the 
signature of Lloyd Klenert, indicates the account was opened on May 
13, 1952, and closed on June 9, 1953, approximately 1 year. The ac- 
count was opened with the $100,000 which was borrowed on May 13, 
1952. Thereafter, the account is debited $30,000 on May 15, 1952. It 
is also debited in the amount of $7,000, $5,000, $7,()0(), and $8,000, on 
May 15, making a total of $57,000. ; 

The Chairman. You mean checks were drawn against the account, 
or withdrawals to the amounts you have spoken of ? 

Mr. Calabrese. That is correct. 

The Chairman. Making a total of $57,000 ? 

Mr. Calabrese. $57,000; yes, sir. Now, with regard to the first 
$30,000, the City Bank account of the United Textile Workers of 
America indicates a deposit on May 14, 1952, of $30,000. 

Mr. Kj:nnedy. So the money came out of the Liberty National Bank, 
and they got the loan on May 13 and there was an immediate with- 
drawal of $30,000, and of $27,000, making a total of $57,000? 

Mr. Calabrese. It was placed in the City Bank. 

Mr. Kennedy. So $30,000 was then transferred over to the City 
Bank? 

Mr. Calabrese. That is right. With that $30,000, the checks which 
were offered in evidence yesterday which Mr. Quigley identified, 
$30,000 worth of cashier's checks were purchased by Mr. Anthony 
Yalente, from the City Bank. 

The Chairman. Out of union money ? 

Mr. Calabrese. Yes. The union account, the City Bank account is 
debited for $30,000, and then Mr. Valente buys $30,000 worth of cash- 
ier's checks, and it is union money, as I will subsequently show. 

The Chairman. All right. 

Mr. IVENNEDY. As you have taken it up so far it came out of the 
Liberty National Bank and went into the City Bank, and then on 
that same date there were $30,000 worth of cashier's checks pur- 
chased ; is that right ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And those cashier's checks were used for the down- 
payment or part of the downpayment or part of the $57,000 that was 
given to Quigley ? 

Mr. Calabrese. On May 14 ; that is correct. 

Mr. Kennedy. Now, what you have to do yet is to show the con- 
nection between that $30,000 of cashier's checks and the $30,000 that 
was deposited ; is that right ? 

Mr. Calabrese. Well, as Mr. Quigley 

Mr. Kennedy. That is what you have to fill in ? 

Mr. Calabrese. That is correct. In other words 

Mr. Kennedy. And you will do that ? 

Mr. Calabrese. That is right. 

Now, with the $27,000, which was also withdrawn from the Liberty 
National Bank, we find on May 15, that Mr. Klenert purchased 4 
bank drafts, on the Chase National Bank of New York, and they were 
in the amounts of $8,000, $7,000, $7,000, and $5,000, totaling $27,000, 
and thereby making a total amount of $57,000 which Mr. Valente and 
Mr. Klenert obtained through cashiers checks and bank drafts during 
May. The reverse sides of all of the cashier's checks and the bank 



3264 IMPROPER ACTIVITIES IX THE LABOR FIELI) 

drafts show with regard to Mr. Valente that he endorsed it, and the- 
second endorsement of deposit to the credit of Mutual Title Co., trustee- 
account. 

The bank drafts which Klenert purchased show Mr. Klenert's sig- 
nature, and deposit to the credit of the Mutual Title Co., trustee 
account. So that all $57,000 found its way back to Mr. Quigley, 
of the Mutual Title Co. 

Mr, Kennedy. As you have discussed before, the records of the 
union have been destroyed, is that right ? 

Mr. Calabrese. The records during the pertinent period, yes. 

The Chairman. They are reported to you to have been destroyed? 

Mr. Calabrese. We have been so advised, yes. 

The Chairman. By union officials ? 

Mr. Calabrese. Yes, sir. 

Mr. Kennedy. And the bank did not keep Recordak check. 

Will you show how you were able to connect these checks together,, 
with the union funds, the bank drafts and the cashiers checks with 
the $57,000 from this account of $100,000 ? 

Mr. Calabrese. Mr. Eric Janssen, the auditor of the United Textile 
Workers of America, prepared an audit report for 3 months, April 
through June 30, 1952. In connection with this audit report, he 
prepared a supplement which broke down certain organizational- 
expenses attributed to the union. 

I have here in my hand a copv of this supplement which shows- 
that the $30,000 drawn to cash on" May 13 from the UTWA account, 
attributed to certain situations such as the Canadian situation. New 
Jersey situation, and North Carolina situation, were then used to pur- 
chase cashier's checks issued in like amounts to Anthony Valente, en- 
dorsed by Anthony Valente, and endorsed and deposited by the Mutual 
Title Co. That ties that $30,000 into that, according to Mr. Janssen. 

NoAv another breakdown, showing the expenditures tied in with the 
Liberty National Bank 

Mr. Kennedy. Just on that, this is an account by the auditor of 
what the records indicated at that time ? 

Mr, Calabrese. Yes, sir. 

Mr. IvENNEDY. That there was a check made out for $13,000 which 
was for the Canadian situation ? 

Mr. Calabrese. Made out to cash ; yes, sir. 

Mr. I^NNEDY. There was a check for cash made for $7,000 to cover 
the New Jersey situation '? 

Mr. Calabrese. That is right. 

Mr. KJENNEDY. And there was another check for $10,000 to cover the 
North Carolina situation ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. He then states that he made a study of those checks, 
which were in existence at the time of this report, and finds the cashier's 
checks were then purchased with these checks, is that right ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And that they were endorsed by Anthony Valente,. 
and endorsed over to the Mutual Title Co., is that right ? 

Mr, Calabrese. Yes, sir. 

Mr. Kennedy. Those are the checks that were discussed here by 
Mr. Quigley yesterday ? 

Mr. Calabrese. Yes, that is correct. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3265 

The Chairman. Do I understand that there are false entries in the 
ledger there as to how this money was used ? 

Mr. Calabrese. That is correct. 

The Chairman. In other words, they show when they charge it on 
the ledger, to account for the money to the union, they show it was 
used for one purpose whereas it was actually used to purchase their 
homes ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Now we get into the bank drafts, the purchase of 
the bank drafts. 

Mr. Calabrese. In the same supplement, under the heading of 
Liberty National Bank, it shows on May 14, checks drawn on the 
UTWA account to cash in the amounts of $T,000, $8,000, $7,000, and 
$5,000, or a total of $27,000, attributed to organizing expenses in New 
York, organizing expenses in Pennsylvania, and organizing expenses 
in the Midwest, and organizing expenses in iNIassachusetts. 

Under his remarks, he indicates that drafts were issued at the Liberty 
National Bank in like amounts to Lloyd Klenert, endorsed by Lloyd 
Klenert, and then endorsed and deposited by the Mutual Title Co. 

Mr. Kennedy. So these checks of the union, the $27,000 in checks, 
charged to organizational expenses in New York, Pennsylvania, the 
Midwest, and Massachusetts, were then taken, and there were bank 
drafts purchased in the New York Chase National Bank. Those bank 
drafts, then, went down and were used as a downpayment on this home, 
is that right, or a payment on this home ? 

Mr. Calabrese. Yes, sir. It turned out Mr. Quigley used it for 
the payment. 

Mr. Kennedy. Mr. Quigley gave his explanation of what that 
$27,000 amounted to, is that right ? 

Mr. Calabrese. That is right, the 27 and the 30. 

Mr. I^nnedy. So the total for these 2 transactions was $57,000? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. And that was used to purchase the equity in the two 
homes for Mr. Yalente and Mr. Klenert ? 

Mr. Calabrese. That is right. 

Mr. Kennedy. And they assumed the mortgages, is that right? 

Mr. Calabrese. They assumed the mortgages. 

I might explain, it was explained vesterclay but it might be well 
to point out at this time, that by May "^13, May 14, or May 15, $57,000 
had already been used of the $95,000 for the settlement of the homes of 
]\Ir. Klenert and Mr. Valente on May 5, 1952. That was the settlement 
date. 

Mr. Kennedy. That was the original $95,000 ? 

Mr. Calabrese, That is right. Now this $57,000 is being replaced on 
]May 14 to take care of the other $57,000 that was put into the settle- 
ment of the homes. 

Mr. Kennedy. See if I can understand vou. 

The $95,000 that was originally paid back on May 5, 1952 

Mr. Calabrese. May 15. 

Mr. Kennedy. No, the original $95,000. May 2, was it ? The origi- 
nal $95,000 was paid May 2, 1952, to Mr. Quigley ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. That was charged to the building fund on the union 
books ? 



3266 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Then on May 5 or May 6, they took $57,000 of that 
and used it to complete the deal ? 

Mr. Cat.abrese. That is correct. 

Mr. Kknnedy. So the union at that point was out $95,000, but 
$57,000 of it actually had been spent for these two houses ? 

Mr. Calabrese. Right. 

Mr. Ivennedy. So they went through to May 15. Then, according 
to this exchange of letters, they wanted the money back, the whole 
$95,000? 

Mr. Calabrese. That is right. 

Mr. Kennedy. Of course, by that time, Mr. Quigley already spent 
$57,000, is that right? 

Mr. Calabrese. Right. 

Mr. Kennedy. So he could not give the whole money back unless 
they gave him $57,000 ? 

Mr. Calabrese. That is true. 

Mr. Kennedy. He already spent it. He sent them a check for $95,- 
000 but they sent him a check for $57,000. The second $57,000 was 
charged to organizational expenses, is that right? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. So Mr. Quigley ended up exactly the same. The 
union ended up with a cl)^rge to organizational expenses rather than 
a building fund ? 

Mr. Calabrese. Right. 

Mr. Kennedy. If it was continued on the books as a building fund, 
as a deposit on the building fund, ultimately Mr. Klenert and Mr. Va- 
lente would have to account for it either by producing a building or 
having the money returned, is that right ? 

Mr. Calabrese. It would be that way, yes. 

Mr. Kennedy. But if it was charged to organizational expenses, 
they could argno t]iat the money had been spent during that period of 
time, is that right t 

Mr. Calabrese. Yes. 

Mr. KJENNEDY. So it wouldn't be necessary to account for that money 
as it would be if it was charged to a building fund, where either they 
had to produce the building or produce the $95,000 ? 

Mr. Calabrese. That is correct. 

(At this point, Senator McClellan withdrew from the hearing- 
room. ) 

Senator Ives. Are there any comments to be entered ? 

Mr. Kennedy. Are there some exhibits, some documents that you 
referred to ? 

Mr. Calabrese. Do you want the audit report and the supplement ? 

Mr. Kennedy. I think just the supplement. 

Senator Ives. That will be made exhibit 24. 

Mr. Calabrese. Next is the application card, the deposit slip and 
the ledger card of the Liberty National Bank. 

Senator Ives. That will be exhibit 2?>. 

( Documents referred to were marked "'Exhibits 23 and 24- ' for refer- 
ence and will be found in the appendix on pp. 3539-3543.) 

(At this point. Senator McClellan entered the hearing room.) 

Senator Ives. Is that all, Mr. Counsel, of this witness ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3267 

Mr. Kennedy. On this supplement to the auditor's report, there is 
another $17,500, is that right, for the period May 27 through June 17? 

Mr. Calabrese. Yes, that is correct. 

Mr. KJENNEDT. That was in addition to the $57,000, there is another 
$17,500, and that is also charged to organizational expenses of various 
amounts ? 

Mr. Calabrese. That is correct. 

Senator I\'es. Are there any further questions of the witness ? 

Does any member of the committee have any question to ask of the 
witness ? 

If not, the witness is excused. 

Call the next witness, please, Mr. Counsel. 

Mr. Kennedy. Mr. Klenert. 

(Members present at this point: Senators McClellan, Ives, Gold- 
water, Mundt, and Curtis.) 

Senator Ives. Mr. Klenert, you do solemnly swear to tell the truth, 
the whole truth, and nothing but the truth, so help you God ? 

Mr. Klenert. I do. 

TESTIMONY OF LLOYD KLENERT, ACCOMPANIED BY COUNSEL, 
JAMES M. McINERNEY 

Senator Ives. Is the counsel also going to be in this ? 

You might as well swear, too. 

What is your name? 

Mr. McInerney. My name is James M. Mclnerney. 

Senator Ives. Do you solemnly swear to tell the truth, the whole 
truth, and nothing but the truth, so help you God ? 

Mr. McInerney. I do, sir. 

Senator Ives. Go ahead. Counsel. 

Mr. McInerney. Mr. Chairman ? 

Senator Ives. Address the Counsel. 

Mr. McInerney. Mr. Counsel, may I make a request under rule 8 
of the committee's rules with respect to taking pictures during the 
testimony ? 

Senator Ives. You can make the request. "Wliat is the request? 

Mr. McInerney. That picture-taking be dispensed with during the 
taking of this witness' testimony. 

Senator Ives. We have had that before. I do not think there is any 
objection to gi-anting your request. 

The Chairman is here. 

The Chairman. Without objection on the part of the committee, the 
request will be granted. The photographers will refrain from taking 
pictures of the witness while he testifies. 

Mr. Klenert, will you state your name, your place of residence, and 
your business or occupation, please, sir ? 

Mr. Klenert. My name is Lloyd Klenert. 

Do you want my home residence, sir ? 

The Chairman. Yes, sir. 

Mr. Klenert. 9801 Old Spring 

The Chairman. Gentlemen, I think the chairman warned the pho- 
tographers. Was there any misunderstanding on that ? 

All right. Proceed. Go ahead. 



3268 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Klenert. 9801 Old Spring Road, Kensington, Md. I am the 
international secretary-treasurer of the United Textile Workers of 
America. 

The Chairman. Thank you, sir. 

You have your counsel with you. I do not know whether counsel 
identified himself for the record or not. 

Will you identify yourself. Counsel, for the record, please ? 

Mr. McInerney. James M. Mclnerney, 1317 F Street NW., Wash- 
ington. 

Senator Mundt. Mr. Mclnerney, are you the union's attorney? 

Mr. McInerney. No, sir, I am not. I am appearing as counsel to 
this witness. 

Senator Mundt. Thank you. 

Mr. Kennedy. Mr. Klenert, how long have vou been with tlie United 
Textile Workers? 

Mr. Klenert. I joined in 1933, sir. 

Mr. Kennedy. 1933? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And what was your position? What was your first 
official position ? 

Mr. Klenert. President of my local union. 

Mr. Kennedy. Where was that ? 

Mr. Klenert. In New York City. 

Mr. Kennedy. New York City. What numlier was that ? 

Mr. Klenert. Local 92. 

Mr. Kennedy. And when did you assume that position as president ? 

Mr. Klenert. I think immediately — well, immediately after the — 
I would say approximately sometime in 1934 or 1935. 

Mr. Kennedy. Were you elected president or appointed president ? 

Mr. Klenert. I was elected by the membership, sir. 

Mr. Kennedy. By the membership ? 

Mr. Klenert. Yes. 

Mr. Kennedy. How many were in your union at that time ? 

Mr. Klenert. I would say about six or seven hundred members. 

Mr. Kennedy. And how long did you remain president of that 
union ? 

Mr. Klenert. About a year. 

Mr. Kennedy. Did you move on to another position, a new position, 
then ? What I would like to do is just to get your history in the union, 
brief! 5^ 

Mr. Klenert. I am trying to recollect some continuity, some good 
approximation on dates. 

I think in 1937 I was elected secretary and treasurer of the Greater 
New York joint board of the textile workers organizing committee. 

Mr. Kennedy. Of the what? 

Mr. Klenert. The textile workers organizing committee. 

Mr. Kennedy. You became a member of that? A secretary? 

Mr. Klenert. I was elected secretary and treasurer of the Greater 
New York joint board of the textile workers organizing committee. 

Mr. Kennedy. And then how lone: did you remain in that position? 

Mr. Klenert. Until 1938 or 1939. I believe that is a good guess. 

Mr. Kennedy, Did you have another official position? 

Mr. Klenert. Yes, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3269 

Mr. Kennedy. What was that ? 

Mr. Klenert. I was elected to the vice presidency of the Greater 
New York joint board of the textile workers organizing committee. 

Mr. Kennedy. And then what position did 3'ou have ? 

Mr. Klenert. I think, in about 1940, 1940 or 1941, somewhere around 
that time, I became international organizer for the United Textile 
Workers of America. 

Mr. Kennedy. Was that an appointed position? 

Mr. Klenert. That was an appointed position by the international 
president. 

Mr. Kennedy. And you remained how long as that ? 

Mr. Klenert. About a year. 

Mr. Kennedy. Then what did you do ? 

Mr. Klenert. I believe in the latter part of 1941 or the beginning of 
1942, the international convention of the United Textile Workers of 
America elected me as an international vice president. 

Mr. Kennedy. And 3'ou remained as vice president until what date? 

Mr. Klenert. The reason why I think it was in 1944 or 1946 was 
because the conventions were held on the even year, biannually, so it 
could have been 1944 or 1946. 

Mr. Kennedy. Was it during the war or after the war ? 

Mr. Klenert. When was the official date of the end of the war? 

Mr. Kennedy. 1945. 

Mr. Klenert. 1945 was the official ending of the war? I think it 
probably was in the 1944 convention. 

Mr. Kennedy. So Avhat position, then, did j^ou take after that? 

Mr. Klenert. I was elected in 1944, most likely, to the international 
secretary-treasurership. 

Mr, Kennedy, And you have held that position up until this time? 

Mr, Klenert. Yes, sir, 

Mr, Kennedy. And you still hold it; do you not? 

Mr, Klenert, Yes, sir. 

Senator Goldavater. When you joined the union I think you said 
it was in 1933 — — 

Mr. Klenert. Yes, sir ; I believe that to be correct. 

Senator Goldwater. Where were you working at that time? 

Mr. Klenert. I worked as a textile worker in a dyehouse, a yarn 
dyehouse, sir. 

Senator Goldavater, In New York? 

Mr, Klenert. In the New York area ; yes, sir. 

Senator Goldavater, Hoav long had you been in that craft? 

Mr. Klenert. I Avent to Avork, I believe, around the time of the big 
crash, Avhich was in 1929. I Avould say then I had been working about 
4 years in the textile industry, approximately 4 years, at that time. 

Senator Goldavater. Thank you A^ery much, 

Mr. Klenert. All right, sir. 

Mr, ICJENNEDY. You Still hold that position ? 

Mr, Klenert, Yes, sir, 

Mr, Kennedy, Could you tell us a little bit about the structure of 
the union as far as the executive board ? Is there an executive board ? 

Mr, Klenert. Yes, sir. 

Mr. Kennedy. Hoav many members are on the executive board ? 

Mr. Klenert. There are 22 members of the executive board, com- 
prised of the international president, and my own office, 20 interna- 



3270 IMPROPER ACTIVITIES IN THE LABOR FIELD 

tional vice presidents elected from various geographical areas spelled 
out vs^itliiii the constitution, and 3 international trustees. 

Actually, the board comprises 22 people ^Yho are elected on the floor 
of the convention, and 3 international trustees who are elected on tlie 
floor of the convention. That is the top structure. 

Mr. Kennedy. How often is your convention? 

Mr. Klenert. We have held conventions biennually. 

Mr. Kennedy. Once every 2 years? 

Mr. Klenert. Yes. We have had — that was the arrangement; yes, 
sir. 

Mr. KJENNEDY. Is that still the arrangement ? 

Mr. Kxenert. At the last convention, the convention voted to ha^'e 
4 year conventions. 

Mr. Kennedy. Did you suggest that ? 

Mr. Klenert. 1 supported it, advocated it, believed it to be a good 
idea. 

Senator Mundt. May I interrupt just a minute? Does that mean 
the terms of office have been 2 year terms and now they are 4 year 
terms? Would that follow ? 

Mr. Klenert. Yes, sir; it would follow. The constitution, I be- 
lieve, was amended in both respects. The convention period was 
lengthened, and the tenure of office was lengthened. 

Senator Mundt. So all 25 of these board members, 22 who were 
elected, and the vice presidents, president and secretary-treasurer, as 
in your case, and the 3 trustees, henceforth will be elected for 4 years 
instead of 2 ; is that right ? 

Mr. Klenert. Under the operating constitution, that is correct. It 
is in operation now; yes, sir. 

Mr. Kennedy. How is their salaries fixed, the members of the 
board? Who fixes their salaries. 

Mr. Klenert. The salaries of the international vice presidents, un- 
der the constitution, are determined by the international president, and 
the international president's action, of course, are subject to approval 
by the international executive board. 

' Mr. Kennedy. Is that mandatory, that he has to get approval from 
the board? 

Mr. Klenert. I believe it has been the practice in the hiring of any- 
one, or the retention of anyone, the paying of any individual, he re- 
ports on it as part of his officer's report, and under new business or 
under report of officers his report is approved or disapproved. 

Mr. Kennedy. But, specifically, he does not have to get approval to 
determine the salaries of the various members of the executive board? 

Mr. Klenert. As a matter of practice, he does. The executive 
board could overrule — I am not a constitutional lawyer, but in my 
opinion the international executive board could overrule the president, 
and either increase the wage or decrease the wage, or discharge the 
individual in question, or hire some other individual in question, 
despite the international president. That is my opinion of the func- 
tion. 

Mr. KJENNEDY. Does the international president also make the de- 
termination as to the expenses of the members of the executive board? 

Mr. Klenert. He initiates it, and this, too, is subject to approval. 

Mr. Kennedy. He determines the salary and the expenses of the 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3271 

•executive board, and then he submits this ultimately to the executive 
board for their approval i 

Mr. Klenert. As part of his report. 

Mr. Kennedy. As part of his report to them? 

Mr. Klenert. Yes. As a matter of practicality, Mr. Kennedy, it 
actually works, if you will bear with me I will give you the detail on 
a matter of practice the man in charge of the region will call up, or at 
that, like this. AVe have men in charge of the various regions, and as 
a matter of practice the man in charge of the region will call up, or at 
the board meeting, or communicate with the president, or make a 
suggesetion to me and I, in turn, will relay it, and have a general sug- 
gestion, and suggest "I think we shoulcl hire Tom Brown," and I 
will use that name illustratively, "I think we should hire him, and I 
think we should pay him $75 a week, and I think we should give him 
so much allowance for his car and so much allowance for any other 
item." 

He makes that recommendation for a particular area, and the presi- 
dent formally makes the appointment. 

But I daresay there are man}^ men on who actually are on by virtue 
of the suggestion of other people, and a formalized appointment by 
the president. 

Mr. Kennedy. What about the salary of the president ? "Wlio deter- 
mines that? 

Mr. Klenert. The constitution, as prescribed in the constitution, by 
convention action. 

Mr. Kennedy. And also for his expenses? 

Mr. Klenert. No. His expenses are established administratively 
the same as anyone else's. 

Mr. Kennedy. That would mean by the president ? 

Mr. Klenert. He establishes that the same as he does for anybody 
else; yes, sir. 

Mr. Kennedy. '\Aliat about on his daily expenses, his hotel bills, 
hotel bills or expenses of any international vice president? Who 
passes on those ? 

Mr. Klenert. I do. 

Mr. Kennedy. The president ? 

Mr. Klenert. The president does. We both do. 

Mr. IvENNEDY. Who passes on the bills and expenses of you and 
the president ? 

Mr. Klenert. The international board and the committee on offi- 
cers reports, the auditors, and 

Mr. Kennedy. When you have a hotel bill or any expenses such 
as that, who determines whetlier they are to be paid ? 

Mr. Klenert. I see. I pass on all those types of bills. 

Mr. Kennedy. And jou pass on your own, do you ? 

Mr. Klenert. Yes ; I do. 

Mr. Kennedy. We were specifically interested — you were here yes- 
terday — regarding these homes that were purchased. 

Mr. Klenert. You seemed to be. 

Mr. Kennedy. I wonder if you could perhaps throw a little light 
on the transaction. First on the question of the $1,000 downpayment 
that was made on the homes by you, I think we have the check for 
JVIr. Valente, and I think since Mr. Calabrese testified yesterday he has 



3272 IMPROPER ACTIVITIES IN THE LABOR FIELD 

had some discussions with Mr. Mclnerney. We would like to get, if 
we could, the explanation for that $1,000 check that was made as a 
downpayment on your home. 

Mr. Klenert. Yes. I brought it to Mr. Mc's attention. I didn't 
think ISIr. Calabrese was telling an untruth, but I thought he had ar- 
rived at an erroneous conclusion. 

I brought to Mr. Mclnerney's attention that I had some recollec- 
tion that it wasn't a union check. I seem to get that implication, at 
least, from Mr. Calabrese's testimony. I may be wrong, but I got that 
impression, that that is what he was implying. 

I advised Mr. Mclnerney that I recall borrowing, taking a loan, from 
our organization in that amount. I recall, I think, to the best of my 
recollection, I deposited it and gave Mr. Nolan a personal check. And. 
incidentally, with an individual contract on that. There was some- 
thing of a straw and something here jTsterday which is not quite as 
I recall it. 

Mr, McInerney. Mr. Chairman, are these men taking pictures, 
Your Honor ? 

The Chairman. Are you speaking — are you taking pictures? 

Did you apply your request to them, too ? 

Mr. McInerney. I certainly did. 

The Chairman. Unless they specify, I did not know. They usually 
are referring to these men here snapping pictures while they are try- 
ing to testify. 

Mr. McInerney. This gentleman just took one here. 

The Chairman. Gentlemen, the request of the witness and his 
counsel is going to be respected. The films that you have taken from 
the time the Chair gave the order will not be used. 

Proceed. 

Mr. McInerney. Excuse me. 

Mr. Kennedy. Then you got this $1,000 loan from the union, is that 
right, and you deposited it in your own bank account? 

Mr. McInerney. Yes, sir. I recollect that. 

Mr. Kennedy. You do remember that ? 

Mr. McInerney. Yes, sir. 

The Chairman. I may say to counsel, if I may interrupt, we do not 
let counsel or the witness determine about whether they may take our 
picture or not. 

Senator Mundt. Mr. Klenert, you said, if I understood you cor- 
rectly, that you remembered borrowing the money from the union 
and depositing it in the bank and issuing a personal check. 

Mr. Klenert. Yes, sir. 

Senator Mundt. It would be helpful to the committee, verifj'ing 
what you have told us. if you could tell us the bank in which you de- 
posited the money and on which you drew the check, so that we can 
check the record and verify your memory, if your memory is right. 

Mr. Klenert. Yes, sir. Well, last night, we tried to see exactly and 
learn as much as we could. In my informal chats or talks with Mr. 
Calabrese, this subject was never raised and, therefore, I never delved 
into it before or explored any facets of this nature. 

Senator Mundt. Can you just tell us the bank ? 

Mr. Klenert. I went to the union records and I found a date which 
I believe was April — a loan made to me in the ledger, which we 



. IMPROPER ACTIVITIES EST THE LABOR FIELD 3273 

turned over to the investigators this morning. I had assumed they 
had it before this. It is in there. It is April 1, a loan to me. 

Then we found some photostats of my bank statement which shows 
a deposit of a like amount a few days following April 1. "We found 
on the same ledger book that I had repaid the organization this loan 
on May 1 or 2. Tliat is in the records of the organization. But there 
was a credit, I think, in between that to my personal bank account, 
and a debit in my bank account of $1,000 dated April 11. 

I think I am quite certain about these dates, because I just looked 
at them last night and this morning with Mr. Mclnerney, and we 
tried to apprise the investigators of this fact and tried to straighten 
it out. 

Senator Mundt. You do not have the check ? 

Mr. Klenert. No, I do not, sir. If I had had tlie check, they would 
have had it by now. 

Senator Goldwater. You say you borrowed this money from the 
union funds ? 

Mr. Klenert. Yes, sir. 

Senator Goldwater. What authority did you have to borrow it ? 

Mr. Klenert. The authority to receive loans and advances has 
"been in effect throughout all the years, by practice, in our organiza- 
tion, I think even as recent as — I am sure that there are some in our 
minutes, authorizations along those lines, Senator, which outline the 
authority by the executive council. 

Senator Goldwater. There is nothing in your constitution and by- 
laws which allows you to do this. 

Mr. Klenert. The constitution and bylaws do not contain it. I 
laelieve the international executive council meetings do contain it, 
M'hich is the highest governing body between conventions. 

Senator Goldwater. Do you mean that the executive council can 
authorize you or any other official to borrow money at your will in 
any amounts ? 

Mr. Klenert. The executive council has authorized that, has given 
that authority, yes, sir. Exactly where it is in the minutes, offhand 
I don't recall, but I am sure that at meetings of the international exec- 
utive council such authority was given. 

Senator Goldwater. You have been secretary-treasurer of this or- 
ganization since 1944. After all of that experience, do you think that 
this is a wise system ? Do you think it is right, in your responsibili- 
ties and the responsibilities of the other officers, to the membership, 
to be able to borrow money from this fund ? 

Mr. Klenert. I would only deem it unwise if the loan wasn't paid 
back. Then I would think it was very bad. 

Senator Goldwater. That is Mr. Beck's philosophy, too. 

What I am getting at in this question is probably not related di- 
rectly to what the chief counsel is getting at, but in the recommenda- 
tions we are going to have to make will be some recommendations 
along the lines of proper union constitutions. It seems to me that if 
I were a member of this union I would insist on such a provision 
being under the duties of the international secretary -treasurer. That 
is, a stipulation that you cannot borrow money for any purposes at all. 

Would you feel better as treasurer if you had that stipulation writ- 
ten in your constitution ? 



3274 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Klenert. Frankly, sir, my offhand reaction is that I think the 
point 3^ou raise is well taken, and, in fact, some of the executive coun- 
cil members, since the creation of the new code of the AFL-CIO, have 
taken the position that we should reexamine our constitution and re- 
examine our practices, and take some affirmative actions where we 
are not in line with any particular suggestion that does exist in the 
new code. There is a meeting of our organization very soon, I know 
that the point yen raise is part of our anticipated discussion, so that 
certain practices which have been frowned upon will be eliminated. 

Senator Gold water. I am glad to hear that, and I hope that you 
go before that body and insist that there be written into your consti- 
tution a provision that would prevent any borrowing for any purpose 
at all, by either officers or members of your union, I think your mem- 
bership would appreciate that, 

Mr. Klenert. Well, as I told you, sir, we anticipate there will be 
a resolution forthcoming with respect to that and related matters. Of 
course, I will not presume to say what the outcome, the vote, will be, 
but I know that many members of the board have already advocated 
and suggested that we effectuate something like that. 

Senator Goldwater, That is all I have, Mr. Chairman. 

Mr, Kennedy, Mr, Klenert, the records show a $1,000 deposit in 
your bank account on the 3d of April. 

Mr, Klenert, It does, 

Mr, Kennedy, And then it shows that the payments to Beitzell 
were cleared — two $1,000 checks of yours and Mr, Valente — were 
deposited on April 7, 1952, and then that check cleared Mr, Valente's 
bank account on April 8, 1952. On the same date, there is a check of 
$1,000 that cleared the Textile Workers Union, $1,000 at the City 
Bank, 

Mr, Klenert, Not in my account, sir, you mean 

Mr, Kennedy, That is the point, Nothing cleared your account 
until April 11, 1952, 

Mr. Klenert. All I can tell you, Mr. Kennedy, is that yesterday I 
noticed with great interest this lady that was here. Miss Callaghan, I 
never laid eyes on her, I never spoke to her in my whole life. She 
mentioned that it was two personal checks, and I think her recollec- 
tion is sound, I believe it to be sound, 

Mr. Kennedy. The deposit slip says it is the City Bank and there 
isn't any clearance in your bank account on the following day as there 
is in Mr. Valente's. 

Mr. Klenert. I remember that being brought out, and I am in a 
quandry about it. 

]\Ir. Kennedy. So are we. 

Mr. Klenert. Yes. I am inclined to believe that my recollection 
is the same as Miss Callaghan's, that they were personal checks. There 
have been errors made, I know, in the banks, that sometimes there has 
been an error made between my account and the organization's ac- 
count. It might well be that my account should have been debited 
rather than that account. That could happen. 

I recall being credited and then debited later by mistake, and the 
reverse happening, too. 

Mr. Kennedy. If that happened there, somebody is out $1,000. 

Mr. Klenert. No, because the debit of $1,000 does appear on my 
account April 11. But Mr. Calabrese made a point of cutting me off 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3275 

at the loth, even though he must have known that there was a debit 
of $1,000 on the 11th. 

The Chairman. The Chair would like to read something- into the 
record. 

Has this document been testified to, this copy of the minutes? 

Well, I will wait awhile. 

Will you be sworn, sir ? 

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

Mr. Henig. I do. 

TESTIMONY OF MOETON E. HENIG 

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

Mr. Henig. My name is Morton Henig. My residence is Silver 
Spring, Md. I am an investigator for this committee. 

The Chairman. The Chair hands you a typewritten document con- 
taining several pages, which purports to be the minutes of a meeting, 
international executive council. United Textile Workers of America, 
Blue Room, Hotel Hamilton, Washington, D. C, April 25 and 26, 
1946. I will ask you to examine this document and state if you recog- 
nize it, and, if so, where you obtained it. 

(Document handed to witness.) 

Mr. Henig. This is a copy of the minutes of the executive council 
meeting given to us by Mr. Klenert, or Mr. Mclnerney, his lawyer. 

The Chairman. It was obtained, then, from the union ? 

Mr. Henig. Yes, sir. 

The Chairman. And represented to you as being the minutes of the 
meeting on those dates? 

Mr. Henig. Yes, sir. 

The Chairman. This document will be made exhibit No. 25, for 
reference. 

(The document referred to was marked "Exhibit 25," for reference 
and may be found in the files of the select committee.) 

TESTIMONY OF LLOYD KLENERT, ACCOMPANIED BY COUNSEL, 

JAMES M. McINEENEY— Eesumed 

The Chairman. The Chair would like to read into the record the 
concluding action, the last action taken, on the morning of April 25, 
1946, as recorded in the minutes of this meeting. [Heading:] 

After this discussion, Vice President Schaufenbil — 

is that his name ? 

Mr. Klenert. Perhaps it is Schaufenbil. 
The Chairman (reading) : 

Schaufenbil moved that the international union continue its policy to make such 
advances or loans to staff members, employees, and oflQcers as the occasion might 
arise, and authorize the international secretary-treasurer to make reasonable ar- 
rangements for repayment according to his best judgment. 

Vice President Sgambato seconded the motion, and it was unanimously passed. 

The council adjourned at 1 o'clock. 



3276 IMPROPER ACTIVITIES IN THE LABOR FIELD 

I think it is important in the study this committee is making to let 
this record show, and develop in the course of this record in these hear- 
ings, what might be termed the loose practices by union officials, execu- 
tives, officers of unions, in the handling of the dues of the members. 

It seems to me that that particular provision, to the chairman at 
least, is very loose, quite irregular, and affords, if it does not even 
invite, the misuse or misappropriation of union dues, and, certainly, 
permits loans to be made without security or without proper require- 
ments for security or that they will be repaid. 

(At this point. Senator Kennedy entered the hearing room.) 

Senator Mundt. Did I understand, Mr. Klenert, that you said that, 
at an upcoming meeting of the council, they are considering rescind- 
ing that privilege to the officers of the union and to the executive 
board members ? 

Mr. Klenert. What I think I said, or what I meant to say, sir, was 
that perhaps you are aware that, of recent months, various codes of 
practice have been developed. I think they are called the ethical 
practices codes. What I tried to tell the Honorable Senator Gold- 
water was that at this board meeting — was that prior to this forth- 
coming board meeting, members of the board, in conversation with me, 
have suggested that we go over those existing codes now, which are 
relatively new, and take some affirmative action to emulate or come 
into accord with the suggestions as contained in that code or codes. 

Senator Mundt. Would you care to tell the committee what you 
think about the wisdom of those recommendations ? 

Mr. Klenert. I have read the codes. I must confess I have not 
studied them very intensively. 

Senator Mundt. I am thinking about this particular matter of the 
loans, not the whole code. 

Mr. Klenert. I have read the codes, and I have found nothing in 
them objectionable. I certainly would not object to a resolution which 
would come before the board, or a motion made by any board member, 
where he might point out some practice in violation of the existing 
code and ask us to eliminate that practice and conform to the code. 

Senator Mundt. Does the code frown upon this practice of internal 
loans ? I am not familiar with it. I gather, from what you say, that 
it does. 

Mr. Klenert. As I told you, I did not read them very intensively. 
I think it is the last code— I think there are 5 or 6 or 7 of them that 
have come forth — I think it is the last code, and I may be wrong, but 
I think it is the last one which has discussed and raised this question 
of loans and advances. That, along with the other sections of the 
code, will all be discussed and acted upon by the next meeting of our 
board. 

Senator ISIundt. May I say that I hope the code does contain that, 
and T hope that your union executive council does approve it by unani- 
mous action. I share with Senator Goldwater the feeling that John 
C. Textile Worker, along with John C. Teamster, has at least the 
potential peril to his fmids if this kind of practice continues ; because 
it is a loose fiscal practice, no matter how honorably it may be initiated. 

It sets up the conceivable situation whereby loans are not going 
to be collectible, whereby a group of men, each passing on each other's 
loans, are inclined to be a little bit more lax, certainly, than a board 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3277 

of directors of a bank would be in making a loan. Wliat I am inter- 
ested in, and what you should be interested in, and I assume you are, 
is protecting the money which the union members have paid into the 
union funds, and not to have it frittered away. 

Mr. Klenert. I imagine that, in the issuance of loans by credit 
unions or employers or an}^ other type of organization, there might 
be sorry experiences. I imagine any loan that is not repaid is a sorry 
experience. 

Senator Mundt. I do not know of any other financial institution, 
however, except a union, that loans money to its members without 
interest. This says that the board of directors wants to continue the 
practice of making these loans, as I interpret it, without interest. Is 
that correct ? 

Mr. Klenert. To the best of my knowledge, we have never charged 
interest for any loan or grant given or loaned to somebody. 

Senator Mundt. Do you know of any other financial institution 
that loans money just on that basis, without interest, a credit union 
or these other ones that you mentioned, especially a trustee fund ? 

Mr. Klenert. I am not very familiar with any of those. To my 
knowledge, I would have to say ''no, I do not." I am not familiar with 
any. 

Senator Mundt. So far as your knowledge goes, you do not know 
of any ? 

Mr. Klenert. As far as my knowledge goes, I do not know of any. 

Senator Curtis. Mr. Chairman. 

The Chairman. Senator Curtis. 

Senator Curtis. Were the rank-and-file members of your union ever 
notified, or given a copy of that resolution that was passed back there 
in 1946 authorizing loans and advances ? 

Mr. Klenert. Actually, the local unions as well, in our organiza- 
tion, the local unions which comprise the rank and file, sir, were given 
financial help and assistance on an interest-free, noncollateral basis, 
and have repaid it, and in some cases still owe the international union. 
The request for loans from a local union, of course, stems from an ac- 
tion taken by the local body and then handed 

Senator Curtis. That is not what I asked, I asked if you ever noti- 
fied the membership that you passed a resolution in international head- 
quarters that you people in the headquarters could borrow their money. 

Mr. Klenert. Wliether or not any international official went spe- 
cifically to a local union and mentioned that fact ? 

Senator Curtis. No. If you notified them, all of them, through 
bulletins or otherwise, that you had passed a resolution that you could 
borrow their money. 

Mr. Klenert. I see. Direct notification came as a result of reports 
at conventions to delegates representing those local unions and the 
membership, who, I presume, reported back on the conventions and 
on the action of the executive board and officers. 

Senator Curtis. What information would they get? 

Mr. Klenert. They would get the information of officers ' e^jorts 
and they could get a committee report on the executive council meet- 
ings. 

Senator Curtis. Those are summary reports, are they not? They 
do not contain every transaction ? 

89330—57 — pt. 9 5 



3278 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Klenert. I beg your pardon. What kind ? 

Senator Cuetis. Those reports are summary in nature, and do not 
contain every transaction, every check, every item received, do they ? 

Mr. KxENERT. They are abbreviated reports. I do not believe they 
contain — that type of report would not contain it ; no. The financial 
report would. 

Senator Curtis. This money belongs to the workers who belong to 
your union ; does it not ? It is their money, is it not ? 

Mr. KiENERT. The money comes 

Senator Curtis. All the money you have in your treasury of any 
sort comes from the workers, does it not? 

Mr. Klenert. It comes from the dues of the workers, yes, sir. 

Senator Mundt. In that connection, if the Senator will yield, I 
would like to read again this paragraph that the chairman read. It 
says: 

After this discussion, Sehaufenbil moved that the international union continue 
its policy — 

which incidentally, verifies what you testified to earlier — 

continue its policy to make such advances or loans to staff members, employees, 
and oflScers, as the occasion might arise. 

I take it that this select circle of individuals entitled to interest-free 
loans without collateral did not include loans to the union members 
who actually paid the dues to create the fund. Am I right about that ? 
I do not see them mentioned. 

Mr. Klenert. No individual member has ever requested a loan from 
the international union for any reason that I know of. 

Senator Mundt. I see nothing here to indicate that any individual 
dues-paying member had any right to make such request, because I 
do not see him starred as a preferential customer. 

He would not be a staff member, or an employee, or an officer. 1 
simply point out to emphasize my interest in protecting the dues-pay 
ing member, that here is a practice which I hope, and which you lead us 
to believe, is going to be discontinued as part of the new ethical prac- 
tices code of organized labor, here is a practice of granting these pref- 
erential loans to people who did not create the funds, but denies the 
practice to the fellow who pays the dues creating the fund. 

Mr. Klenert. Well, sir, I do not want to get into any contention 
with you. It occurs to me 

Senator Mundt. If it is true, let us get it ventilated today. Let us 
get the word out to all the textile union workers that all they have to do 
is come to your union office and say, "Look, pal, I want to buy an auto- 
mobile. How about a loan of $2,000, interest-free ? Can I get it?" 

If that is true, tell the world that. If it is not true, let us show the 
world that they have been cut off at the grass roots. Which is true? 
I do not want a contention, just a clarification. 

Mr. Klenert. Perhaps I will say this to you. Senator. All the 
money of the United States, all the money that we collect in taxes, that 
comes from the people, too. 

Senator Mundt. That is right. 

Mr. Klenert. When the Congress 

Senator Mundt, It cannot be loaned to any Member of the Senate 
without interest, I assure you of that, or any Member of the other 
body. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3279 

Mr. Mclnermey could not get any when he was doing work very 
commendably for the Government in a previous time. 

Mr. Klenert. We say all the money comes from the people. The 
House of Representatives, for example, appropriates $10,000 a year 
to the Speaker of the House, which is paid in equal monthly install- 
ments, for which no accounting is required. 

I don't believe a law was passed giving every citizen of the United 
States $10,000 a year without an accounting. The money belonged to* 
the people and was appropriated. 

Senator Mundt. You are getting your eye off the target. 

Mr. Klenert. It is a question of practice. 

Senator Mundt. Wait a minute now. I am not criticizing for the- 
time being, the expense allowance which you say you have been voted,. 
$20 per diem. 

I am criticizing a select pattern of preference which grants to the- 
union high command rights to borrow money without interest and 
without collateral from a fund created by the dues-paying members,, 
rights which are summarily denied to members who create the funds.. 

Is that or is that not the situation? If it is not, let us tell John C- 
Textile Worker, through the wires of the press services today, that 
they have been missing out on a mighty good bet ; that all they have tO' 
do is come to you and they can get a loan without collateral and with- 
out interest. 

Which is true ? Do only the officers get this plush treatment, or dO' 
all of them do it ? 

Mr. Klenert. The motion speaks for itself there. It does not au- 
thorize me to give loans to any member. I think that if I was asked 
for a loan from a worker, I think I would arrange to give it to him.. 
Yes, I think I honestly would, sir. 

Senator JNIundt. Then we can now announce to the secretarj^-treas- 
urer of the international union, if he is asked for a loan by any textile' 
worker, will grant it to him ? 

That will be good news in a lot of households if they hear it on the 
radio tonight. 

Mr. Klenert. I have not granted every loan that has been asked of 
me by members of the staff or officers or office employees. I have not 
granted all of them, sir. 

Senator Curtis. Have you ever turned down any of your own? 

Mr. Klenert. No, sir. 

Senator Mundt. You want the record to read then, so the textile- 
worker will know, that he will be treated exactly the same in granting- 
these loans as any officer or any staff member in international head- 
quarters, is that right? You are amending your minutes, but that is^ 
all right with me. 

You kind of have a monolithic situation here, in union administra- 
tion. 

Mr. Klenert. What is the date of those minutes ? 

Senator Mundt. 1946. I believe it is April 25. It was in the morn- 
ing, and the council adjourned at 1 o'clock. Does that help you-- 
answer the question ? 

Mr. Klenert. I certainly could not amend the minutes there or any 
other minutes. 

Senator Mundt. You are amending them because you are telling" 
me that you are going to grant these loans to all textile workers. L 



3280 IMPROPER ACTIVITIES IN THE LABOR FIELD 

certainly commend your amendment because I see no reason why the 
fellow who pays the dues should not get as much treatment as the 
fellow who makes his living out of the dues. 

Mr. Klenert. Would you say, then, that the Congress should pass 
a law giving any citizen who wanted it, the fund which I mention 
which is given to the 

Senator Mundt. No, sir. I should say Congress should pass a law 
denying this plush treatment that the union leaders have been engag- 
ing in to the detriment of the dues-paying members. 

That is a law I think we should pass. Would you agree with me ? 
I have told you what I think. What do you think? Do you agree 
with me ? 

Mr. Klenert. I think I would like to discuss it with my board, and 
whatever the majority of the board decides will be good enough for me, 
Senator. 

Senator Mundt. Would you be good enough to tell this committee 
what your board decides on that question ? 

Mr. Klenert. I will be happy to live with any decision that the 
board makes on that question or any other question. 

Senator Mundt. Would you advise this committee of how the board 
reacts to that suggestion ? 

Mr. Klenert. I will be very glad to. 

Senator Goldwater. Mr. Chairman, to finish that point up, I have 
a question. 

The Chairman. Senator Goldwater. 

Senator Goldwater. First, wliile you are attending this next meet- 
ing at which it will be possible to offer these resolutions, I would 
like to suggest to you that you also consider the possibility, in fact 
the advisability, of including in the duties of the secretary-treasurer 
the responsibility of making an annual report to the membership. 

Your constitution today only says that you are responsible for these 
moneys, and that you shall report their condition to the executive 
council. The executive council has absolutely no responsibilities to 
report it any further. 

I think in fairness to your membership you should, as secretary- 
treasurer, suggest this resolution : That among your duties will be 
the specific one of reporting annually to the full membership, through 
your house organ, or however you care to do it, the state of your 
finances. 

I would like to just ask you one question. You expressed an inter- 
est in tlie suggestions that have been made here that these several things 
be done. Are you willing to make those motions in the next meeting? 

Mr. Klenert. With respect to the codes ? 

Senator Goldwater. To bring your constitution in line with good, 
fiscal practices. 

Mr. Klenert. Yes, I am in complete accord with any fiscal practice 
which will serve the good purpose for our union. 

Senator Goldwater. Serve your members? 

Mr. Klenert. When I say the union, I mean the members. Senator 
Goldwater. I don't differentiate between the two. 

Senator Goldwater. Do I understand you will make sucli motions to, 
1, prevent the loaning of dues money to officers or anybody else in the 
union, and, 2, a provision in the responsibilities of the secretary- 
treasurer of reporting annually to the entire membership ? ■ 



IMi>ROPER ACTIVITIES IN THE LABOR FIELD 3281 

Will you make those two motions before your next meeting? 

Mr. Klenert. I think the only honest answer that I could give you 
is that I believe motions of that nature will be forthcoming. 

Senator Goldwater. I just wanted to m.ake sure. If you said, yes, 
we could all rest easily and John Weaver or John Textile Worker can 
go to sleep tonight and know that his moneys are going to be protected 
in the future because of your actions. 

Mr. Klenert. Without seeing any resolution or motion and specific 
language, I would say to you that fundamentally, I am not in disagree- 
ment with what you have outlined, and that if a motion comes to the 
floor of our international executive council meeting, I certainly off- 
hand can see no objection to it. 

Senator Goldwater. I was hoping that you would be the one, with 
your experience 

Mr. Klenert. It may well be that after the question of language and 
everything else and general discussion is held, I might become an 
ardent advocate of it. I do not want to prejudge it or make any defi- 
nite, binding commitment to you here today and then come back to 
you, perhaps, at a later date and you saj^, "Well, did you do that?" 

Senator Goldwater. You see, Mr. Klenert, you are the logical one. 
You have had 11 years' experience as secretary-treasurer of this union. 
During that course of time, you should have been able to find the 
weaknesses of that part of your constitution that bears on your respon- 
sibilities. 

I am not going to press the point. I do not want you to commit your- 
self here if you do not want to. But it seems to me that you are the 
logical one to stand up before your next meeting and say, "Mr. Chair- 
man, I have two motions to make," and then make them. 

Senator Ives. Mr, Klenert, when did you have your last conven- 
tion of your international? 

Mr. Klenert. In September or October of 1956. 

Senator I\t:s. 1956? That was last year. When do you have your 
next one? 

Mr. Klenert. The next one, in accordance with the constitution 
would be held in 1960. 

Senator I^^ES. You have them every 4 years, is that it? 

Mr. Klenert, That is the practice as of now, sir. Prior to this is 
was biannual. 

Senator Ives. It is a question of constitutional requirement, is it 
not? Is that not what the constitution provides? 

Mr. Klenert. Now, it is 4 years. Previously it had required a 2- 
year period, sir. 

Senator Ives. What we have been talking about here apparently, 
is something which should be in your constitution. I mean these 
recommendations that have been made by Senator Goldwater and 
others ought to be a part of your constitution. 

How is your executive board created ? Is that elected or appointed ? 

Mr. Klenert. The executive board is elected on the floor of the 
convention and I believe the constitution provides a designation of 
various geographical areas so that all the segments have proper repre- 
sentation. 

Senator Ives. In other words, the people who are representing the 
unions, the locals in those sections, make recommendations and then 



3282 IMPROPER ACTIVITIES IN THE LABOR FIELD 

they are elected, are tliey, to the executive board? Is that the way 
you handle it? 

Mr. Klenert. The delegates at the convention, who are elected by 
the rank-and-file members of the local unions, come to the convention 
and nominate and elect these men. 

Senator Ia^s. For how long a period are they elected ? Four years 2 

Mr. Klenert. For the same time as between conventions. 

Senator Ives. And you are elected for 4 years? 

Mr. Klenert. In the same manner, sir; yes, sir. 

Senator Ives. Then is there any provision in your constitution — 
I have not looked at it — for calling a special convention ? 

Mr. Klenert. I believe there is. 

Senator Ives. Under what circumstances? 

Mr. Klenert. If I could have a copy of the constitution, I would 
find it real fast for you. 

(A document was handed to the witness. ) 

(The witness conferred with his counsel.) 

Mr. Klenert. Senator Ives, on page 16, article X, the heading, 
■"Conventions," if you want me to, I shall read for you. 

Senator Ives. I wish you would because I would like to know how 
you can call a special convention. 

Mr. Klenert. Section 1 : 

The United Textile Workers of America shall hold a regular constitutional 
convention once every four years on the even year. It shall require 19 legal, 
bona fide delegates from at least the nine local unions to hold such a convention. 

Senator I^'ES. May I interrupt you there ? 

Mr. Klenert. Yes, sir. 

Senator Ives. How large a membership has your international ? 

Mr. Klenert. Tlie international union represents under collective 
bargaining agreements for approximately close to 100,000 workers, 
but on a dues-paying basis, only has about 50,000 paying dues. 

Senator Ives. How large a delegation do j^ou have at your con- 
ventions ? 

Mr. Klenert. I would say roughly, I think, 400. That would be 
a good round number. 

Senator Ives. Four hundred out of the 50,000, representing the 
country geographically, is that it ? 

Mr. Klenert. Each local represents so many delegates in accordance 
with their membership. I think 1 for the first 200, and some sort of 
proportional representation. 

(At this point. Senator Goldwater withdrew from the hearing 
room. ) 

Senator Ives. That requirement there calls for 19, does it ? 

Mr. Klenert. I imagine it is a quorum requirement, that is, 19 
legal, bona fide delegates from at least the 19 local unions must be in 
attendance to hold such a convention. 

Senator Ives. You have never had anything with as small a dele- 
gation as that, have you ? You have had larger conventions than that, 
have you not ? 

Mr. Klenert. This is, I imagine, some sort of quorum control or 
requirement. 

Senator Ives. I am trying to find out how you can call a special 
convention. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3283 

Mr. Klenert. Here is section 3 : 

The basis of representation for all local unions shall be one delegate for the 
first 200 members and an additional delegate for each additional 200 members. 

That is the way it works. 

With respect to the other question, section 2 : 

In the event of any circumstances arising, whereby it is deemed to be for the 
best interests of the International Union, the executive council shall have the 
power to call a special convention and should one-third of the unions aflBliated 
with this organization make a request for a special convention, and the execu- 
tive council should not grant the same, they shall have the power to petition the 
president for a special convention and he shall instruct the secretary to issue 
a circular to all local unions stating the request, and asking them to vote on 
same. 

In the event of two-thirds of the local unions voting in favor, the president 
shall instruct the secretary to call a special convention immediately. 

That concludes it, sir. 

Senator I\t:s. That being the situation — I would like to have that 
back. It belongs to the committee. 

(A docmnent was handed to the committee.) 

Senator Ives. In the light of what has been said by Senator Gold- 
water and others, do you not think that you ought to call a special 
convention to add this language that has been suggested to your con- 
stitution ? It ought to be in the constitution. 

You do not have any business to be doing what you have been doing 
and you know it. You have no business to have had such practices 
as you have been engaged in as an official of your union, and you 
know it. 

I do not suppose you can call a convention in a few months time. 
I realize the problem of calling a convention. But surely you ou^ht 
to call a convention not later than next year and have this constitution 
of yours straightened out so that you cannot indulge in the kind of 
practices in which you have been indulging. 

You know that just as well as I do. I am asking you, will you 
think that over ? I know you cannot call it, but will you think it over ? 
Mr. Klenert. I will answer you by saying this. Senator, that if 
the council outlines and instructs me to follow certain procedures in 
line with your suggestions here today, and Senator Gold water's sug- 
gestions today, if those are forthcoming from the council, the interna- 
tional executive council, which is the highest governing body, I would 
not say to them, "I am not going to effectuate these new practices until 
we have a convention." 

I would abide by their decision immediately and effectuate them. 

Senator I^tes. The council is not here to hear what we have been 
saying today. The chances are that some of them will never see this 
record that is being made today. 

Will you, yourself, recommend such action to the council ? 

Mr. Klenert. I have already told you I do not want to make any 
quick answer and wild promises or any commitments that I am not 
able to live with, but I have already mentioned to Senator Goldwater 
that some members of the executive council have said that we should 
go over our practices and our procedures and wherever they need im- 
provement or tightening up, if they do, it should be done. 

If the board or executive council, the highest authority of the unicm, 
outlines certain procedures, I would institute them immediately. I 
would not wait for a convention. 



3284 IMPROPER AcrrviTiES in the labor field 

Senator Ives. All right. Are you going to recommend them? 
Senator Golclwater asked that and you ducked him. Are you going 
to duck me, too, on the question ? 

Mr. Klenert, I am not trying to duck or be evasive. 

Senator Ives. Be frank. 

Mr. Klenert. I am. I said that fundamentally, I am in accord, 
and until we actually have the motion and the language before me, 
and we have had discussion by the council, I cannot make a firm com- 
mitment for or against. 

But I say to you in all honesty that fundamentally, I see nothing 
to which I would object and, therefore, would support. 

Senator Ives. Just a minute, now. You do not have to have every- 
thing before the council before you make up your mind what posi- 
tion you are going to take on this. 

Mr. Klenert. No. 

Senator Ives. All right. Will you be for it, or will you be against 
it, or will you be lukewarm and indifferent? 

Mr. Klenert. If I am for it 

Senator Ives. Are you going to be for it ? That is what I am asking 
you. 

Mr. Klenert. You said lukewarm or indifferent. I will be strongly 
for something or strongly against something, not lukewarm or in- 
different. 

Senator I^rES. Are you going to be for this ? 

Mr. Klenegt. Specifically what ? 

Senator Ives. Specifically for the recommendations made by Sena- 
tor Goldwater. 

Mr. Klenert. To eliminate the interest-free noncollateral loans? 

Senator Ives. Exactly, to eliminate the practice of what you have 
been describing, that you can participate in. 

Mr. Klenert. I will tell you here that I will definitely support a 
resolution which would eliminate the practice of interest-free, non- 
collateral loans to anybody on any strata in the organization, yes, sir. 

Senator Ives. Further than that, will you carry out the further 
recommendations of Senator Goldwater, and that is that you cease 
to indulge altogether in these kinds of practices, making loans to your 
own members, your officers and anything of that kind ? 

Mr. Klenert. I thought I just 

Senator Ives. You said interest-free. 

Mr. Klenert. I see. Do you mean loans regardless of collateral ? 

Senator Ives. Regarless of collateral, making loans to your officers 
or anything of the kind. 

Mr. Klenert. Yes, I think I would. 

Senator Ives. Do you know or are you just thinking ? 

Mr. Klenert. Well, yes. 

Senator Ives. Would you or would you not ? 

Mr. Klenert. I think I would, yes. 

Senator Ives. You think you would ? 

Mr. Klenert. Yes. 

Senator Ives. All right. That is good. 

I will not ask you anything further about your convention because 
if your council is going to do this thing, you probably do not need a 
convention. 

Mr. Klenert. If the council does it, we don't need a convention. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3285 

Senator Ives. But you are goinr;; to work for this, are you ? 

Mr. Klenert. As outlined, I wil 1 ; yes, sir. 

(At this point, Senator Kennedy withdrew from the hearing room.) 

Senator Mundt. Does the geneial dues-paying membership of your 
textile union know that this financial smorgasbord of noncollateral, 
interest-free loans is available to you, or does it not know it ? Have 
they been advised ? 

Mr. Klenert. Financial smorgasbord ? 

Senator Mundt. You can delete that phrase. The practice, let us 
say. Do they know of this practice ? 

Mr. Klenert. That is a new one on me. Senator. I never heard 
of it. 

Senator Mundt. Forget that, then. You are not a Scandinavian. 
I can see that. 

Mr. Klenert. I have enjoyed smorgasbord. 

Senator Mundt. That is one of the things that got you before this 
committee, that you enjoy the smorgasbord practices. 

Forget that phrase. 

Do the union members that pay the dues know about the practice 
which we have been discussing here in the last half hour or so, that 
you people at the top do have available to you noncollateral, interest- 
free loans? 

Mr. Klenert. We have had to date, yes, sir. We have had that. 

Senator Mundt. Wliat I am getting at is this : Do you publish an 
international newspaper or weekly ? 

JMr. Klenert. Yes, sir. 

Senator Mundt. Has it ever been mentioned to the membership in 
that, that that is a practice engaged in by the officers ? 

Mr. Klenert. Specifically ? No, sir. The only thing that has been 
mentioned has been outstanding loans that have been owed to the 
international union, in our financial report, all coupled under that 
heading. No one individual, group, or local union that might have 
been lielped or district council that might have been helped. 

Senator Mundt. You do not anticipate, do you, any great uprising 
of resentment on the part of the dues-paying members should you 
decide to discontinue the practice ? 

Mr. Klenert. No ; I do not, sir. 

Senator Mundt. I do not either. 

The Chairman. Are there any further questions at the moment ? 

It is obvious that we cannot finish with this witness this afternoon. 
It is the plan of the Chair, if agreeable to the other members of this 
committee, to resume hearings in the morning at 10 o'clock, and to 
continue until such time as we determine we will recess. Then we will 
recess over until Monday afternoon. 

The witness will return tomorrow at 10 o'clock. 

The committee stands in recess until that hour. 

(Wliereupon, at 4:07 p. m., the committee recessed, to reconvene 
at 10 a. m., Friday, July 19, 1957.) 

(Members present at the taking of the recess: Senators McClellan, 
Ives, Mundt, and Curtis.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



FRIDAY, JULY 19, 1957 

United States Senate, 
Selelct Committee on Improper Activities 

IN the Labor or Management 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 Jolin L. McClellan (chairman of the select committee) 
presiding. 

Present : Senator John L. McClellan, Democrat, Arkansas ; Senator 
Pat McNamara, Democrat, Michigan ; Senator Barry Goldwater, Re- 
publican, Arizona; Senator Karl E. Mundt, Republican, South Da- 
kota ; Senator Carl T. Curtis, Republican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel to the select com- 
mittee ; Ralph Mills, assistant counsel ; Morton E. Henig, investigator ; 
Alphonse F. Calabrese, investigator ; Ruth Young Watt, Chief clerk. 

(Members present at the convening of the session : Senators McClel- 
lan and McNamara. ) 

The Chairman. The committee will be in order. We will proceed. 
Mr. Klenert, will you come around, please ? 

TESTIMONY OF LLOYD KLENERT, ACCOMPANIED BY COUNSEL, 
JAMES H. McINERNEY— Resumed 

Mr. Kennedy. Mr. Klenert, you were interested in April of 1952 
in buying a home for yourself ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And Mr. Valente, president of the union, was also 
interested in buying a home ? 

Mr. Klenert. That is correct. 

Mr. Kennedy. You had selected two homes, had you, in Rock Creek 
Hills, in April of 1952? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Now, the price of those two homes was $95,000 ? 

Mr. Klenert. My home was $52,500, and Mr. Valente's was $42,500 
and the total would be $95,000. 

The Chairman. Yesterday, I understood, and we granted the re- 
quest, that you did not want pictures made. Some one of the photog- 
raphers advised me now that you had withdrawn your objections to it. 
Please advise the committee whether you do desire that they not be 
made, so that we will be governed accordingly. 

3287 



3288 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. McInerney. I would still like to make the request. I told these 
gentlemen I would consider it overnight, but I have come to the same 
conclusion this morning. 

The Chairman. There will be no pictures, gentlemen. Let us pro- 
ceed. 

Mr. Kennedy. So the two homes, one $42,500 and the other $52,500, 
amounted to $95,000, is that correct ? 

Mr. Klenert. Yes, sir. 

(At this point. Senator Goldwater entered the hearing room.) 

Mr. Kennedy. During early May of 1952, your union borrowed 
$95,000,^is that correct? The union borrowed $95,000? 

Mr. Klenert. The union, in effect at that time, I think posted that 
amount of bonds. 

Mr. Kennedy. But they borrowed $95,000 ? 

Mr. Klenert. And borrowed against that amount, yes, sir. 

Mr. Kennedy. From the City Bank ? 

Mr. Klenert. That is correct. 

Mr. Kennedy. And that $95,000 was transferred to Martin J. 
Quigley of the Mutual Title Co. ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Now, that $95,000 was to cover the purchase of your 
two homes, is that right ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. It was not ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. $57,000 of that $95,000 was used for the purchase of 
your two homes. 

Mr. Klenert. It eventually 

Mr. Kennedy. If you would just answer the question, and then 
you can give your explanation. 

Mr. Klenert. Well, I think I had explored this in conversations 
with your investigators, Mr. Kennedy, and explained to them that this 
arose 

Mr. Kennedy. Could you just answer the question? $57,000 out 
of $95,000 was used for the purchase of your two homes. 

Mr. Klenert. In effect, that occurred. Actually, we used that as 
a lay aside, for the purpose of laying aside, and we used it as a device 
to lay aside that amount of money in line with authorization and in- 
structions from the executive council of our organization. 

Mr. Kennedy. Originally, of the $95,000 thaf you gave to the Mu- 
tual Title Co., $57,000, which was union funds, were used for the 
purchase of your two homes. 

Mr. Klenert. Were put to use in that manner, yes. 

Mr. Kennedy. Then, ultimately, on May 13, you received another 
loan from the Liberty National Bank, $100,000. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. ThatwasonMay 13, is that right? 

Mr. Klenert. I am not familiar with the dates. 

Mr. Kennedy. Approximately ? 

Mr. Klenert. I would say that I imagine you have the records there 
and if it bears that date, I think we can assume that that date would 
be correct. 

Mr. Kennedy. You received that loan on the basis that you were 
going to use that loan for the purchase of a headquarters for the 
union ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3289 

Mr. Klenert. If I may, I would like to see those papers, and perhaps 
I could help to clarify this and give me a better recollection of it. 

Mr. Kennedy. You do not remember that ? 

Mr. Klenert. I am very vague on that. 

Mr. Kennedy. We will show you the papers. 

(The documents were handed to the witness. ) 

Mr. Kennedy. This has already been made an exhibit, Mr. Chair- 
man. 

The Chairman. What exhibits are you presenting to the witness? 

Mr. Calabrese. Exhibits 21, 22 and 23. 

The Chairman. All right. Let the record show those three ex- 
hibits being presented to the witness at this time. 

(At this point. Senator Goldwater withdrew from the hearing 
room.) 

(Present at this time are Senators McClellan and McNamara.) 

The Chairman. Can we move along ? 

Mr. Klenert. I am sorry, sir, I am trying to digest this, and I will 
be with you in a moment. 

(The witness conferred with his counsel.) 

Mr. Klenert. This is very new to me. 

The Chairman. All right. 

Mr. Klenert. Mr. Kennedy, this exhibit 22 I believe was entered 
into at the time. It is a resolution signed by Mr. Valente, the president 
of our organization and I am deducing that the reason why he entered 
into this resolution was because of my absence. 

I must have been away from town at the time that this resolution 
was signed and that is why I am rather vague about it. That is the 
only explanation I have. 

Mr. Kennedy. Can you answer the question, which is that you bor- 
rowed the other $100,000 ostensibly for the purpose of purchasing a 
building, a headquarters for the union. 

Mr. Klenert. The exhibit 21 says something similar to that with 
respect to a building. I do not know whose handwriting that is. 

Mr. Kennedy. I imagine it is the bank's handwriting; is it not? 

Mr, Klenert. Yes, sir. 

Mr. Kennedy. What is the answer to the question ? 

Mr. Klenert. Well, as I remember it 

Mr. Kennedy. Doesn't this refresh your recollection as to the pur- 
pose of the loan ? 

Mr. Klenert. With respect to that, that period of the first few 
weeks in May, and the immediate week prior to May, there were many 
things occurring. We had oui- convention and a board meeting and the 
CIO fight, and they were coming over and we had our personal prob- 
lems. 

Mr. Kennedy. I understand that. 

Mr. Klenert. It is very difficult for me to give you M'hat happened 
on the 4th and the 6th. 

Mr. Kennedy. I am not asking you about tliat. You have a docu- 
ment there, and it says that in accordance with the resolution passed 
on October 19, 1946, as I remember it, you were entitled to buy a build- 
ing, and that this money was being borrowed against that resolution. 

Mr. Klenert. It occurs to me, and I don't know this loaning officer, 
but it occurs to me that our prime purpose at that time was to convert 
this money, these bonds into cash because we anticipated that we 



3290 IMPROPER ACTIVITIES IN THE LABOR FIELD 

were going to need that amount and more, incident to the organiza- 
tional activities that were developing as a result of this schism in 
the Textile Workers, CIO. 

Mr. Kennedy. That is entirely different, evidently, than what was 
told to the bank at that time. 

Mr. Klenert. It might well be that the bank — the bank was given 
collateral. 

Mr. Kennedy. Mr. Klenert, just try to answer the question. 

Mr. Klenert, I am. I can't give you the thinking of this loaning 
officer. 

Mr. Kennedy. I am not asking you to give the thinking of the loan- 
ing officer ; I am asking you to examine that document which says the 
loan was made, and would you read what the purpose of the loan was ? 

Mr. Klenert. It says the loan is marked unsecured, and I think that 
is inaccurate, and it wasn't. Then, it says, if you want me to read it, 
I shall, sir, "To be used for the purchase of new quarters, but old 
building." 

Mr. Kennedy. That is fairly clear, is it not ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Now, turn it over and tell me what is on the other 
side. 

Mr. Klenert. It is blank, sir. 

Mr. Kennedy. Is there a resolution there, and does it say, "In 
accordance with the resolution." Is that the other exhibit? What 
exhibit number is that. 

Mr. Klenert. The resolution, sir, is exhibit 22, 

Mr. Kennedy. What does it say there ? 

Mr. Klenert. What does it say ? 

Mr. Kennedy. Yes. 

Mr. Klenert. I shall read it. 

Mr. Kennedy. That part of it, or that section that refers to the 
authority of the union to borrow. 

Mr. Klenert. I will try to pick it out here out of context. 

Mr. Kennedy. I think it would be easier for you. 

Mr. Klenert (reading) : 

Resolved, That President Valente is authorized to borrow from time to time 
on behalf of this organization from any source such sums for such times aud upon 
such terms as may to him seem advisable and to execute notes and renewals 
thereof, extensions, or agreements in the name of the organization for the repay- 
ment of any sums so borrowed. 

Then we come to "B," and shall I continue ? 

Execute with said bank commercial or other business papers belonging to this 
organization or drawn by or upon third parties without limit as to amount. 

C. Give security for any liabilities of this organization to said bank by pledge 
or assignment or lien upon any personal property, tangible or intangible of this 
organization ; and 

D. Execute in such form as may be required by the bank all notes and other 
evidence of such loans, all instruments of pledge, assignment or lien, and that 
none of the same shall be valid unless so signed or endorsed. 

Mr. Kennedy. Is there not a resolution in there, a section regard- 
ing the October 19, 1946, meeting of the union ? 
Mr, Klenert (reading) : 

I, Anthony Valente, the undersigned, president of the United Textile Workers 
of America, AFL, do hereby certify that the following is a true copy of the 
resolution duly adopted at the regular meeting of the executive council of the 
said organization duly held in Washington, D. C, on the 19th day of October, 1946. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3291 

Mr. Kennedy. Wliat does that say ? 

Mr. KiiENERT. What I have just read. 

Mr. KJENNEDY. What does the resolution say, Mr. Klenert? It was 
passed in October. 

Mr. KiiENERT. I see. I thought that you wanted to have this first 
part. 

Mr. Kennedy. No; give it back to me, please. 

^The document was handed to the counsel.) 

(At this point. Senator Goldwater entered the hearing room.) 

Mr. Kennedy. Does this resolution together with those notes that 
were made by the bank, not indicate that the reason for the loan was 
for the purchase of a building ? Is that not quite clear ? 

Mr. Klenert. I think not, Mr. Kennedy. I think that that resolu- 
tion had nothing to do with this loan. 

Mr. Kennedy. Why do you think that the bank official would put 
down that you wanted to buy a new building or a building for the 
headquarters which would be in an old residence, or an old building, 
or whatever it says there ? 

Mr. Klenert. I am certain now, we discussed it. I was not in town, 
and I am certain that this resolution was incident to the raising of 
other money at that time. 

Mr. Kennedy. ^Miere do you think the bank got this information ? 

Mr. Klenert. This particular resolution, you mean ? 

Mr. Kennedy. Yes, this information about the building. 

Mr. Klenert. On exhibit 21, you mean? 

Mr. Kennedy. Yes. 

Mr. Klenert. Well, at that time, the United Textile Workers of 
America was engaged and had even in the winter of 1952 inspected 
commercial properties. 

Mr. Kennedy. So that is the reason for it. Then, somebody came 
to the bank and wanted to borrow $100,000 and they gave their rea- 
son to the bank and the bank official wrote that reason down on that 
document. 

Mr. Klenert. I think that 

Mr. Kennedy. What does the docmnent say the reason for the loan 
of $100,000 was? 

Mr. Klenert. The document signed by the loaning officer whose 
name I cannot decipher, marks it as "unsecured", and again I repeat, 
"to be used for", and then his handwriting says, "purchase of new quar- 
ters, but old building." 

Mr. Kennedy. Would that not be quite clear that that was the pur- 
pose of the loan ? 

Mr. Klenert. Actually, there might have been discussions there 
about our activities at that time, incident to the purchase of a building, 
but I do not understand this application, which says "unsecured loan, ' 
and it was secured, and at that time the organization still was going to 
buy this building. 

Mr. EJENNEDY. This building? 

Mr. Klenert. A building. 

Mr. Kennedy. What building? 

Mr. Klenert. We examined 

Mr. Kennedy, What particular building had you discussed with 
Mr. Quigley at that time ? 



3292 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Klenekt. I spoke to your investigators and to try to help you 
clarify that, and I did tell them about one particular building which 
required, I think, at least the seller said it required $110,000 of cash, 
and we were interested in that. 

I recall definitely that we made a physical inspection of that prop- 
erty among several others and we were advised at that time that the' 
title was very unclear and muddy, and that we should not toucli it. 

At the same time the executive council told us a few days later to 
abandon the project. 

Mr. Kennedy. We are talking about you putting up money for a 
particular piece of property. 

Mr. Klenert. Yes. 

Mr. Kennedy. Now, what particular piece of property did you put 
the money up for ? 

Mr. Klenert. There was one building. 

Mr. Kennedy. Don't take me on a trip here. 

Mr. Klenert. I don't recall the particular location of this one par- 
ticular property. 

Mr. Kennedy. You don't ? I am not asking you for that. I am 
asking you what property you put the money up for. 

Mr. Klenert. For this property that they were asking $110,000. 

Mr. Kennedy. You put the money up for that property ? 

Mr. Klenert. Yes, we had that one in mind. 

Mr. Kennedy. Did you tell anyone? 

Mr. Klenert. Yes. 

Mr. Kennedy. Did you tell Mr. Quigley of the Mutual Title Co. ? 

Mr. Klenert. I think that Mr. Quigley 

Mr. Kennedy. Did you tell Mr. Quigley of the Mutual Title Co. ? 

Mr. Klenert. He must have been aware of it in some manner. As 
a result of discussions or conversations he must have been, because I 
do recollect that he advised us that it wasn't a good deal because it 
was all muddy, and not clear. 

Mr. Kennedy. Would you answer the question ? Did you tell Mr. 
Quigley ? 

Mr. Klenert. Do I remember specifically telling Mr. Quigley? 

Mr. Kennedy. Yes. 

Mr. Klenert. I don't remember specifically telling Mr. Quigley, no, 
but I do remember that he advised us against it so he must have known 
of that. 

Mr. Kennedy. You would not be putting the money up for some 
property that he advised you against purchasing? 

Mr. Klenert. No, the advice in that respect was given after. 

Mr. Kennedy. After what ? 

Mr. Klenert. After the money had been posted. 

Mr. Kennedy. The advice was given after the money was posted? 

Mr. Klenert. The advice was given, and he checked the title. 

Mr. Kennedy. If you never told him what property you had in 
mind, how did he know what you were posting the money for ? 

Mr. Klenert. I said that apparently I must have discussed it in 
conversations. You asked me if I distinctly remember saying to him 
directly, and I said "No," but he must have known of it because he 
advised me following the posting of the money, sir, that we should 
not touch it, to use a colloquialism, with a 10-foot pole. The title was 
not clear, and the owner was somebody you shouldn't do business with. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3293 

Mr. Kennedy. Why should you put up money for a building which 
you cannot identify, and you did not have any clear-cut conversations 
with Mr. Quigley. 

Mr. Klenert. So that we could 

Mr. Kennedy. Did you sign any documents concerning the 
property ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. You just put up $95,000 ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Of union funds? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And that just happened to be the same price as the 
two homes that you and the president were going to buy. 

Mr. Klenert. No ; it had nothing to do with the price of our homes. 
As far as I was concerned, I needed $51,000 other than the $100,000, 
and I believe that your staff, Mr. Kennedy, learned and we discussed 
it, that prior to taking care of my own home, the City Bank had been 
asked to take over the existing loan on my home and increase it at mj'^ 
behest, and that I had borrowed insurance money for that purpose, 
and so, certainly, if I was interested in using this money for the homes, 
I would not have in April, before this money was ever posted, asked 
the City Bank to put a higher first trust on the property which even- 
tually I took possession of. 

Mr. Kennedy. Let me ask you if this is true : You borrowed $95,000 
from the bank, and you were interested in buying two pieces of prop- 
erty, you and Mr. Valente, which amounted to, in value, $95,000, and 
these were personal loans. 

You placed the $95,000 with the Mutual Title Co. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Within a day or so, the Mutual Title Co. used 
>}i57,000 of that for a downpayment or for the payment of your 2 homes, 
tlie equity of your 2 homes, your 2 private homes. 

INIr. Klenert. Yes, sir. 

Mr. Kennedy. That was $57,000 of union funds. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Isn't that correct? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And that it was charged in the books of the union as 
a hnikling fund, and it was charged to building fund? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And then within 10 days of that, you borrowed an- 
other $100,000 from the Liberty National Bank. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Isn't that correct ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Then you had an exchange of letters with the 
IVfutual Title Co., with Mr. Quigley, of the Mutual Title Co., isn't 
that right? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And you transferred $57,000 of the new $100,000 that 
you had borrowed, and you transferred that or sent that over to Mr. 
Quigley, did you not ? 

Mr. Klenert. Yes, sir. 

89330 — 57 — pt. 9 6 



3294 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy, And that $57,000 was then charged to organizational 
expenses, various organizational expenses ? 

Mr. Klenert. Yes. 

Mr. Kennedy. On the union books, as organizational expenses? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Isn't that true so far ? 

Mr. Klenert. I am glad that you brought that up, sir. 

Mr. Kennedy. Then you can come back. 

Mr. Klenert. I think that you want to know the fact that Mr. 
Quigley — I was here when Mr. Quigley testified and I want you to 
know that our reasons which I know you want to develop, and our 
intent, which I know you want to develop, were not within Mr. 
Quigley's knowledge; and Mr. Quigley had no motives or anything 
wrong, and he merely did these things. 

We had been instructed in April by our organization to do it, and 
we thought this was the proper device and the proper method and 
procedure to follow, and Quigley just cooperated on our request. 

Mr. Kennedy. Let me get this, so that we get the facts and we can 
discuss the rest of it. 

You gave him the $57,000 and you charged it to organizational ex- 
penses. 

Mr. Klenert. I believe it appeared at that time, yes. 

Mr. Kennedy. So the result, at that same time he returned the 
$95,000 to you. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. So the result was that $95,000 which had been 
charged to a building fund was returned to you, and $57,000 which was 
then charged to organizational expenses, the union lost $57,000 which 
was charged on the books to organizational expenses. 

Mr. Klenert. The union lost it, you say ? 

Mr. Kennedy. At that time the union was out $57,000, isn't that 
right? 

Mr. Klenert. No. At that time, $57,000 was laid aside as per our 
instructions in April, by the executive council of our organization. 

Mr. Kennedy. Let me ask you this : Was it laid aside in your two 
homes ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. It was laid aside in your homes ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. So tha;t the union then laid aside in Mr. Klenert's 
and Mr. Valente's homes, $57,000 and charged it to organizational ex- 
penses, is that right ? 

Mr. Klenert. The union — when you speak of the union, I would 
prefer for accuracy, to say that Mr. Valente and I did that and laid 
that money aside. 

Mr. Kennedy. You say you did ? 

Mr. Klenert. Yes, and we thought we were following out the in- 
structions of our council. 

Mr. Kennedy. You thought that was a good place to lay it aside? 

Mr. Klenert. We thought that would be a good way of doing it, 
yes, sir, at the time. I think if you will care to, Mr. Kennedy, we can 
go ihto the thinking of the board at that time, and the reasons for it, 
and I would be happy to give you that information. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3295 

Mr. Kennedy. I just wanted to get the facts, and then we will go 
into that. 

Mr. Klenert. Sometimes the facts were just figures. I don't know 
whether that would be factual enough for your committee and I don't 
presume to tell you that, but if you want to know our thinking as to 
why we did these things, I will be happy to give it to the committee. 

Mr. Kennedy. I think that they would be interested. 

The Chairman. Let me get this straight now. You say putting the 
money into the homes of you and Mr. Valente was the thinking of the 
board at that time ? Is that what you implied a moment ago ? 

Mr. Klenert. No, sir. In April — I don't want to consume your 
time, but I will try to give it to you, sir. 

The Chairman. Well, I will bear a little while. I certainly do not 
want to deny you the opportunity to explain it. Go right ahead. 

Mr. Klenert. Well, I think, and I don't want to duck your ques- 
tioning and if I relate certain events it might eliminate some of the 
questions and give you the answers that you want. 

The Chairman. I am not hindering you. Go right ahead. 

Mr. Klenert. In April of that year, the latter part of April, we 
had a convention. At the same time there was a convention of the 
Textile Workers Union of America, an erstwhile CIO union, and a 
tremendous internal fight had taken place in there betAveen forc^es 
known as the Bebe forces the Baldan forces. 

We had reasons to assume and to hope tliat they would come toward 
us for the ynirpose of coalescing. They would come toward us not be- 
cause they loved us, but because they hated the CIO more. 

Our board took the position that we should give tliese people a 
haven and we should bring the membership in. r)ut tluir Ave sliould 
take precautions because these people who were coming over had here- 
tofore been hostile and antagonistic toward our structure. If they 
come over en masse, we did not want it to result in the constitutional 
structure of our organization being changed and our local unions being 
deprived of their autonomy ^^^nd our particular structure and method 
of operation changed into a monolithic centralized thing. 

Tlie board said, "Take provisions to set aside sufficient money that 
at any time after the amalgamation takes place, the old United Textile 
Workers of America, local unions, who may become destitute because 
of this fight, will have financial aid and assistance to come to the con- 
vention and be actually represented to protect their structure." 

This is why it was done, and when we enacted it, we used this as a 
method of segregating the money and as far as the records go, we did 
it at the same time to make sure that it would be crystal clear that 
$95,000 went out and $95,000 went in ; and $57,000 went in and $57,000 
went in. 

It may appear, 5 years hence, to be rather inept and there may have 
been a better way of doing it, but we had many problems then in 
Canada and in the South, and in the middle Atlantic, and our own 
everyday problems, and this was what we did at that time. 

The Chairman. As I understand it now, you were apprehensive 
about some problems and some internal problems and conflict with an- 
other union and so forth and you wanted to set aside some money to 
be used in that contest, or 

Mr. Klenert. In the event it would be needed. 



3296 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. And. in the event it was to be needed and it was to 
be charged as organizational funds, or organizational expenses, is that 
correct? 

Mr. Klenert. Yes, sir. 

The Chairman. Well, how in the world did you deduce from that 
that you were supposed to buy private homes from it ? I just cannot 
follow it to that conclusion. 

Mr. Klenert. We did not deduce that we were supposed to buy 
private homes with it. 

The Chairman. Did you use it for that purpose ? 

Mr. Klenert. In effect, yes, sir, we put it in there temporarily, yes, 
sir. 

Senator Goldwater. Why could not that have been carried in an 
account marked for the purposes that your board wanted it used for ? 
Why did it have to go into campaign funds or organizational funds ? 

Mr. Klenert. Because at that time I suppose the officials deemed 
it politically astute to conceal the fact that we were creating what 
might be termed a political slush fund for internal politics which 
might develop. 

Senator Goldwater. If I recall, looking at your ledger yesterday, 
there was nothing new. You have a defense fund, and what was 
wrong with putting it in that ? Wliat was the defense fund for ? 

Mr. Klenert. The defense fund is for use in strike situations, and 
in financial assistance to local unions, and for other reasons. 

Senator Goldwater. And raiding, also, is it not ? 

Mr. Klenert. If you operate on the theory that the best defense is 
offense, yes. 

Senator Goldwater. I agree that you have that fund in your ledger, 
and the thought went through my mind yesterday, why did you not 
put it in there. 

Mr. Klenert. As I explained, at that time the thinking was that it 
was politically astute to put it this way and to afford the old unions, 
local unions, of the United Textile Workers of America, full and com- 
plete franchise at the forthcoming convention. 

Senator Goldwater. Well, the CIO certainly could not look at your 
books, could they ? 

Mr. Klenert. Yes, immediately upon entering into the union, they 
could and we had some mental reservations about them. Senator, and 
we wanted to protect them against the retaliation and annihilation, 
but we wanted the membership to be given representation but we didn't 
want these people who were very antagonistic, and they had no alterna- 
tiv, and this is our thinking, and they had no alternative and they 
couldn't go elsewhere and we wanted to give them what they were 
entitled to, but we didn't want to jeopardize the entire structure of 
our union. 

Senator Goldwater. You wanted them to join your union? 

Mr. Klenert. Yes, sir. 

Senator Goldwater. Now, once they have joined your union, thej 
have done what you wanted them to do and you would assume them 
to be local members of the AFL, and what fear would you have of them 
criticizing you for putting up ,a defense fund to help fight the encroach- 
ments of the CIO ? . , ; 

Mr. Klenert. I did not assume that they would; be loyal members of 
the United Textile Workers of America. I assumed that since foi- 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3297 

15 or 20 years they had been hostile to our expressions and hostile to 
our set-up, and had apparently aided in building a type of organiza- 
tion to which we were opposed, I assumed that if they came in in suffi- 
cient number we would have built a Frankenstein which would have.ac- 
tually taken our organization and made it a counterpart of the CIO 
union they had just left because of a political hassle. 

Senator Goldwater. Is it not true that for bookkeeping purposes, 
it would have been and was much easier for you to take $57,000 out of 
an organizational fund for other purposes than to take it out of, say, 
the defense fund, or a building fund ? 

Mr. Klenert. Well, we had another motive which has not been de- 
veloped on a projected basis at that time. 

Senator Goldwater. You have not answered my question. We are 
talking about bookkeeping now, and you are a bookkeeper. 

Mr. KJLENERT. I am not. 

Senator Goldwater. Well, you are responsible for the books. 

Mr. Klexert. I am now responsible, yes. 

Senator Goldwater. Is it not true that you could have taken that 
$57,000 out of an organizational fund with less notice than you could 
probably any other fund in there? Is that not why you put this in 
the organizational fund ? 

Mr. Klenert. Xo, I think that if we had taken the $57,000 and 
typified it as a political exigency fund, it would have again, stuck out 
like a sore thmnb. 

Senator Goldwater. You do not have anything under politics at all 
in your book, do you? You have no political fund in your ledger? 

Mr. KLE>rERT. Xo, and I speak of politics, sir, and I do not speak of 
Federal or State politics, but intraunion politics. 

Senator Goldwater. That is what I am talking about, and you do 
not have any subheading in your ledger under politics. 

Mr. Klexert. No, sir. 

Senator Goldwater. But you do have defense fund, and that is a 
political fund in part. What I am trying to (let out of you is the rea- 
son, the real reason you put it under the heading that you did. That 
$57,000, that is what vou needed for these 2 homes. 

Mt.Klexert. Xo,i needed $31,000. 

Senator Goldwater. I am talking about the whole transaction and 
Is it not true that it would be easier for you to disguise it under organ- 
ization than it would be under other funds where locals have a chance 
to look at it or the locals could see it? Or under funds where possibly 
the executive board can review, because you are supposed to report 
occasionally to the executive board. 

Mr. Klexert. I do it at meetings of the council. 

Senator Goldwater. Under organization, the $57,000 showed up 
having been expended and there would be less question about that 
than there would about $57,000 under the defense kitty or the building 
fund, is that not right ? 

Mr. Klexert. It doesn't necessarily follow. 

Senator Goldwater. Is it not true ? 

Mr. Klexert. I am not sure if I understand what you are trying 
to develop. Senator. 

Senator Goldwater. I am trying to develop why you put it in the 
organizational fund, and not in the funds that it would normally go 
into, and if your purposes are correct — you say you wanted to use 



3298 IMPEOPER ACTIVITIES IN THE LABOR FIELD 

this $57,000 to defend yourselves against the CIO, and it would logi- 
cally follow that you should have put it in the fund that is normally 
used for that purpose, which in your case is called the defense fund. 

Now, why did you put it over in organizational funds ? 

Mr. Klenert. Well, you see, we didn't anticipate using this money 
against the CIO per se. We were hiding this money, Senator. 

Senator Goldwater, I know that. 

Mr. Klenert. We were hiding the money. 

Senator Goldwater. Why did you put it under that rock? Why 
did you not put it under the other rock ? 

Mr. Klenert. Because it appeared that this rock was the better 
facade than the other rock. 

Senator Goldwater. That is exactly what I want to find out. 

Mr. Klenert. And it was for intradevelopment and not as a use 
against outside CIO, but in the event the insiders while ClO'ers, 
would raise problems for us. 

Senator Goldwater. Actually, this fund was under organizing ex- 
penses and now, I am getting down to this : Would it not be easier if 
somebody on the executive board asked you, after your regular report, 
"How come $57,000 is missing from the defense fund, and what did 
you spend it for?" You would have a more diflEicult time explaining 
that than you would if $57,000 was spent out of the organizational 
expenses because organizational expenses is a normal day after day 
and week after week process of a union. 

Mr. Klenert. Yes, sir. 

Senator Goldwater. Am I right in that, that you put it there for 
that purpose ? You put it in there because it could be hidden better 
under that account ? 

Mr. Klenert. We put it in there not for the purpose of concealing 
it from the executive board members, but we put it in there because 
they said that we should set it aside and hide it away and use it when 
and if the day came when we needed it internally. 

Senator Goldwater. You did not use it internally. 

Mr. Klenert. We did not require it internally and it was returned 
as a result of that. It was returned because of other thinking which 
you may care to develop and we can go into that at the time. 

Senator Goldwater. You did use it for your home ? 

Mr. Klenert. Yes, sir, it was laid in there temporarily, and I have 
said that repeatedly. 

Senator Goldwater. Would it not have been a good thing in book- 
keeping procedure to just put up a heading under your ledger for 
two homes, $57,000? 

Mr. Klenert. Then it wouldn't have been hidden. 

Senator GoldwAter. I agree with you, it would not have been 
hidden. 

The Chairman. I think we have established it was pretty well hid- 
den for a while. Let us go ahead. 

Mr. Kennedy. Did you hide any other money during this period 
of time ? 

I notice that there is $17,500 charged to organizational expenses in 
addition to the $57,000. Did you hide any of that money ? 

Mr. Klenert. May I see what you say you noticed, Mr. Kennedy ? 

Mr. Kennedy. I am referring to exhibit No. 24. Are you familiar 
with that $17,500, organizational expenses ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3299' 

Mr. Klenert, May I see it ? 

(A document was handed to the witness.) 

The Chairman. The Chair present to yon exhibit No. 24, and asks 
you to examine it as counsel interrogates you regarding it. 

Let us proceed, if we are ready. 

(The witness conferred with his counsel.) 

Mr. Kennedy. Noav, there is $57,000 taken out. 

Mr. Klenert. I would appreciate it if you would repeat the ques- 
tion incident to this, and now I have digested this. 

Mr. Kennedy. There was a picture of $57,000 that was taken out 
and charged to organizational expenses and was used to replace the 
$57,000 that had been charged to the building fund, as an exchange in 
checks, and $95,000 came back and $57,000 went out. 

Mr. Klenert, It was laid aside. 

Mr. Kennedy. Then, in addition to that, during the same period 
of time, there was another $17,500 that was charged to organizational 
expenses. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And I am wondering whether you hid any of that in 
your home. 

Mr. Klenert. No, sir. 

Mr. Kennedy. You did not ? 

Mr. 1vi.enert. No, sir. 

Mr. Kennedy. ]May I have that please ? 

Mr. Klenert. Yes, sir. 

(The document was returned to counsel.) 

Mr. Kennedy. This is from exhibit No. 24, the United Textile 
Workers of America, supi)lement to audit report for 3 months ending 
June 20, 1952, and it goes through the $57,000 and then it states that 
there is an item here to the City Bank, dated May 27, payee cash, 
expense incurred, Canada, $6,000." 

Was that $6,000 used up in Canada ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. That was cashed and used in Canada ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. How did you use that money in Canada ? 

Mr. Klenert. Would you give me that particular tiling again? 

Mr. Kennedy. $6,000, ]May 27, expense incurred, Canada. That 
was cash. 

(The witness conferred with his counsel. ) 

Mr. Klenert. In the midst of all of the other activity which I 
have tried to relate to you, aside from the normal function and activ- 
ities, the printed record, and newspaper accounts and general public 
knowledge will clearly establish that our organization at the same 
time was cursed and plagued with a Communist-dominated group of 
Jocal unions in the Dominion of Canada. 

We had been harassed and troubled and concerned with this situa- 
tion for a considerable time considerably prior to these particular 
dates. 

I believe that your staff in conversations with us and inspection of 
the records, clearly established that fact. 

We finally moved in at that time and cleansed the United Textile 
Workers of America and all of its local unions, and the entire struc- 
ture up there. I went there with full authority of Mr. Valente and in 



3300 IMPROPER ACTIVITIES IN THE LABOR FIELD 

fact, lie delegated to me his authority as international president and, 
in effect, when I went to Canada, and I served in Canada, I was 
cloaked with his full authority and my own and undertook all steps 
and measures and I was very successful in ousting 11 Communists — I 
think up there they were called the Labor Progressive Party — and we 
ousted 11 of them. 

Mr. Kennedy. How did you spend the $6,000 ? 

Mr. Klenert, Incident to the ouster, we anticipated and as events 
transpired, correctly so, that the lef twing forces would attempt to dis- 
rupt our unions, and would attempt to force management to recognize 
them and would attempt to keep our people from honoring the agree- 
ments and entering the mills and continuing their work under the 
contracts. 

This money was used to see to it that the duly appointed organizers 
and staff and all of the people and members under the contracts would 
go through picket lines and would go to work without being molested 
and without being harmed in any way. 

This money was expended to bring that happy result about. 

Mr. Kennedy. To bring what ? 

Mr. Klenert. To bring that happy result. 

Mr. Kennedy. Again, how was the $6,000— how did you spend the 
$6,000 to bring this happy result ? 

Mr. Klenert. To abbreviate it, I will continue. 

And I did not want to make it longer than that. When we went 
there originally 

Mr. Kennedy. I do not want you to make it too long ; will you an- 
swer the question how you spent the $6,000 ? 

Mr. Klenert. 1 will tell you. 

Mr. Kennedy. Just tell me how you spent the $6,000. 

Mr. Klenert. This money was given to, I think what we can term 
deputies of the United Textile Workers of America, who were at vari- 
ous mill gates of our organization to see to it that if the Communist 
agents or the organizers started any nonsense, or any physical violence, 
that they would be restrained and prevented. 

Mr. Kennedy. How were they going to be restrained ? 

Mr. Klenert. Well, if someone tries to punch me in the jaw, the 
only way I know about restraining them is to punch them back. 

Mr. Kennedy. That is what the $6,000 was used for ? 

Mr. Klenert. Sometimes that happened, and there was violence 
there ; yes, sir. 

Mr. Kennedy. That was to pay these people to be there in case 
sombeody punched them. 

Mr. Klenert. To pay these people to be there to prevent our people 
from physical attack. 

Mr. Kennedy. Was there much up there ? 

Mr. Klenert. There was quite a bit of trouble up there. 

Mr. Kennedy. And did they have to take part in some of these 
fights? 

Mr. Klenert. There was hassels and scuffles around certain mills up 
there at that time ; yes, sir. 

Mr. Kennedy. Did you make a report as to how you had spent that 
$6,000 ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Do you have that report ? 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3301 

Mr. Klenert. I made that report to the international executive 
council and I made that report to the president of our organization 
and I told them in detail exactly how it had all transpired and in 
greater detail than I am here. 

Mr. Kennedy. Did you tell them how you had given the money ? 
Mr. Klenert. How I had given the money ? 

Mr. Kennedy. Can you tell us some of the people that you gave the 
money to ? 

Mr. Klenert. After I had this meeting with all of the leaders of 
Canadian labor, and we discussed the problem, they pledged aid and 
assistance, and I pledged the expenditure of money and I was con- 
tacted and a man came to see me and we went over the local unions, and 
we went over the geographical areas, and he said that he would pro- 
vide me with 50 men and he would station them in accordance with 
our discussions in various locals, and various communities and we 
worked out payment for them. 

That is how the money was expended. 
Mr. Kennedy. Wlio was this man that arranged that ? 
Mr. Klenert. The only identification that I have for this man, I 
can recollect his physical identification, and the only name I have is 
his name was pronounced in French fashion, French Canadian, pro- 
nounced his name Jacques. 

Mr. Kennedy. You do not know his last name ? 
Mr. Klenert. That is the only name I know him. 
Mr. Kennedy. Where did you see Jacques ? 
Mr. Klenert. In Canada, and he came to my hotel quarters. 
Mr. Kennedy. Who introduced you to Jacques ? 
Mr. Klenert. I received no personal introductions from any of the 
Canadian labor leaders, and all I know is that after we had this con- 
ference and discussed ways and means and strategy and approach and 
anticipated developments, we left the meeting in my room and this man 
called and he seemed to know quite a bit about what had happened 
at this meeting at which he was not present, and he said could he come 
to see me, and he did, and he suggested this course of action and I 
accepted it. 
Mr. Kennedy. Did you try to check on him at all, on Jacques '? 
Mr. Klenert. Did I ask any of the people about it ? No. 
Mr. Kennedy. Do you know anybody in canada that knows 
Jacques ? 

Mr. Klenert. I do not know anybody in Canada. I don't know 
of anybody in Canada from people that I have spoken to in Canada, 
who know Jacques. No, I don't know that. 

Mr. Kennedy. You do not know how anybody would get in touch 
with Jacques, now ? 

Mr. Klenert. I do not know that. 

Mr. Kennedy. And you do not know his last name. What did 
Jacques look like ? 

Mr. Klenert. I would estimate or I would say he has dark hair, 
about 6 foot 2 or 3 inches, and weighed about 220 pounds, and swarthy 
complexion, and that is after a 5 -year period, and that is about as 
close as I can give you. 

Mr. Kennedy. You gave him this money, did you ? 

Mr. Klenert. No, I doled it out to him. He wanted more. 

Mr. Kennedy. More than the $6,000 ? 



3302 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Klenert. Yes, sir; and he wanted more and we discussed the 
time it would take and how long- I would think we needed, and he 
wanted a guaranty or a commitment, that these men would be given 
2 weeks of continuous activity at so much a day. 

We had some discussions about that at the time. 

Mr. Kennedy. But you gave him $6,000 in cash ? 

Mr. Klenert. No, we worked out that these men would be given 
$15 a day, oh yes, and he wanted it for a 2-week period, and I told 
him, "Well, I want to do it on a per diem basis and it might take 
less than 2 weeks and things might not be that bad," and finally, I 
think the commitment was a minimum of 10 days of their services, 
and I recall on some days giving him $750 and then I recall on some 
days, if I knew I was going to be away, up in Lachute or Valleyfield, 
away from Montreal proper, the possibility existed that I would be 
away from that operation or headquarters base, I would give him an 
advance of $1,500 or something like that. 

Mr. Kennedy. You had how many men up there ? There were 50 ? 

Mr. Klenert. 50 men ; yes, sir. 

Mr. Kennedy. You had 50 men ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And it lasted for how long, about 10 dayr,? 

Mr. Klenert. I paid them on that basis, of 10 days, yes, sir. 

Mr. Kennedy. And so that was about $7,500 that you gave Jacques. 
You gave Jacques $7,500 in cash ? 

Mr. Klenert. Yes. 

Mr. Kennedy. Did you receive anything from him, any kind of 
a voucher or receipt, from Mr. Klenert $7,500 ? 

Mr. Klenert. No, sir, I requested it. 

Mr. Kennedy. But he would not give it to you ? 

Mr. Klenert. No, sir, he gave me — and again I use a colloquialism, 
he gave me the horse laugh, and he said, "We don't sign anything." 

Mr. Kennedy. Well, that would be May 27, $6,000 and then I see 
that you received on June 16, $2,500. That was for cash, expense in- 
curred Canada, and that would be $8,500 altogether for Canada, for 
the Canadian campaign. 

Mr. Klenert. Yes, sir, and we believe incidentally, and it may be 
a self-serving declaration, but we believe the job was well done and 
economically well done, considering the magnitude of the job and the 
success of the job, and we don't believe it was too much money. 

Mr. Kennedy. You gave $7,500 of this money to Jacques and I 
suppose you spent the other money in your own expense on trips. 

, Mr. Klenert. The balance of those funds I spent tliem, we had 
workers' committees and I would give funds to workers for cars, who 
had automobiles for gas and oil money, for meals and for lost time, 
away from the job and that is how that money was eaten up. 

Mr. Kennedy. But none of it was eaten up in your house ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. None of that went into your home ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. It all went up in Canada, to Jacques, or $7,500 for 
Jacques, and the other $1,000 in this driving. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. None of it went to buy anything for your home ? 

Mr. Klenert. No, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3303 

Mr, Kennedy. Now, you have $1,000, June 4, expense in Lewiston, 
Maine. What did you do with that $1,000 in cash ? 

Mr. Klenert. The date is what, sir ? 

Mr. Kennedy. June 4. Let me read these to you. Do you remember 
that? $1,000 in Lewiston, Maine? 

(The witness conferred with his counseL) 

Mr. Klenert. On June 4, 1952, do you mean ? 

Mr. Kennedy. Yes. 

Mr. Klenert. No, sir, I do not remember that. 

Mr. Kennedy. Then you have another $1,000, June 4, South, and 
another $1,000, and this is again organizing expense, and another 
$1,000, June 4, Mid- Atlantic States, and another $1,000, June 4, Massa- 
chusetts, and another $1,000, June 4, Midwest. On June 4 you were 
very active. 

Mr. Klenert. The activity at that time defy description, Mr. 
Kennedy. 

Mr. Kennedy. Could you go tlirough from Lewiston. Maine, to the 
Mid-Atlantic States and to the South and Midwest all on June 4? 

Mr. Klenert. The dates there are not intended to give the impres- 
sion that any 1 individual or 2 individuals were there in all of those 
places on that same date. 

Mr. Kennedy. What did you do with the cash ? 

Mr. Klenert. The dates there when they were drawn and not when 
they were used. I am beginning to remember and I believe that some 
of those organizational situations which you mention I would sug- 
gest, and I assure you I am not begging off, and I do not remember 
anything about them, and I would suggest that you make a mental note 
and ask Mr. Yalente about them because I am beginning to feel — and 
I believe that these particular activities at that particular time were 
handled by him. 

I have no recollection of them and, therefore, I assume that perhaps 
they were being handled by him. 

Mr. Kennedy. Did any of this money, this $5,000, go for any per- 
sonal purchases in your own home, furniture or anything? 

Mr. Klenert. These items that I told you I assume were handled 
byMr.Valente? 

Mr. Kennedy. Yes, did any of that go for items purchased for 
your own home ? 

Mr. Klenert. No, these were by Mr. Valente as set forth. 

Mr. Kennedy. Were any of the moneys of that $5,000 used to make 
any purchases in your home ? 

Mr. Klenert. I just told you that the items there were spent as 
set forth. 

Mr. Kennedy. Did Mr. Valente give you any of that money to 
make purchases in your home or did he buy anything for your home ? 

Mr. Klenert. No, he did not. 

Mr. Kennedy. So the answer to that is no, none of that money was 
used ? 

Mr. Klenert. That is right. 

Mr. Kennedy. There is another $2,500 on June 16, expenses in- 
curred Dan River, Va. Wliat was that in connection with? 

Mr. Klenert. June 16 ? 

Mr. Kennedy. Yes. That was the same day ns the $2,500 that we 
discussed earlier for Canada. 



3304 IMPROPER AOnVITIES IN THE LABOR FIELD 

Mr. Klenert. Oh, yes. I was in a very impossible situation at that 
time. I think you will agree that it is verj^ difficult to be in Dan River 
and Montreal at the same time. I had developments in the situation 
at that time that were such that I had to be in both places at the same 
time, aside from normal affairs at the international headquarters. 

We had been conducting an organizing campaign at the Dan River 
mills, and this money — I went to Dan River — and this money was used 
amongst workers, shop stewards, key workers in departments who 
aided and assisted in carrying out organizing activity within the plant 
and throughout the homes of workers, 10,000 workers that worked 
in that plant, with the goal in mind of achieving a majority vote in a 
petition for certification which was then pending before the National 
Labor Relations Board. 

Mr. Kennedy. How was the $2,500 spent in cash ? 

Mr. Klenert. At that time I distributed various sums to these peo- 
ple for lost time, use of cars, gas and oil , meals, volunteer organizing 
work. 

Mr. Kennedy. Do you know any of the people that you might have 
given any of that $2,500 to ? 

Mr. Klenert. Personally ? 

Mr. Kennedy. Could you name any for us that you might have 
given some of that $2,500 to ? 

Mr. Klenert. No. No, I could not. No, I could not. 

Mr. Kennedy. Did you 

(The witness conferred with his counsel.) 

(At this point, Senator McNamara withdrew from the hearing 
room. ) 

Mr. Klenert. I didn't hear you. 

Mr. Kennedy. I didn't finish. I was wondering if you made any 
written report on that, on how you spent that $2,500. 

Mr. Klenert. I made a report to the board incident to it, and I 
brought back some vouchers some people had signed. I recall asking 
people to sign if they received 25 or 30 or 15 or 10, whatever it might 
have been. Some of the workers signed these vouchers, attesting to it, 
and others said, "Oh, no. Oh, no, we are not going to put ourselves 
on the spot." 

In case the CIO won the election, there would be a record that they 
had taken the money from the AFL rival union. 

Mr, Kennedy. You do not have any of those records now ? 

Mr. Klenert. No. Naturally, in a political situation, we were so- 
liciting votes, and I did not press anyone or antagonize anyone or 
insist. Truthfully and frankly speaking, I wanted every vote we 
could get. 

Incidentally, we got close to 7,000 votes. 

Mr. Kennedy. Was any of that $2,500 charged to expense incurred, 
Dan River, June 16, 1952 ; was any of that money used to make any 
personal purchases for you, for your home ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. None of it was ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. Then there is another $1,000 for June 17, expense in- 
curred, Pennsylvania. Do you know what happened to that ? 

Mr. Klenert. June 17 ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3305 

I don't remember, I would suggest that you ask Mr. Valente about 
that, Mr. Kennedy. I don't recall it. I have no recollection. 

Mr. Kennedy. Was any of that money used to make any personal 
purchases in your home ? 

Mr. Klenert. No, sir. 

Mr. Kennedy. Then there is a $500 item on June 5, for international 
office. The total, then, is $17,500 that I have asked you about. 

When you moved into this home that we have been discussing, did 
you buy some furniture for your home ? Did you buy some drapes and 
some curtains, for instance ? 

Mr. Klenert. On drapes and curtains, I would do better if I spoke 
to my lady about that. 

Mr. Kennedy. What about the rugs? Did you buy some rugs for 
your house? Don't you remember that you bought some rugs? 

Mr. Klenert. I may have. I don't recall the detail of it. 

Mr. Kennedy. What about the furniture, the couch, for instance? 
Do you know whether you bought some couches ? 

Mr. Klenert. This is in 1952 ? 

Mr. Kennedy. Yes. 

Mr. Klenert. I can't remember the details on that, sir. 

Mr. Kennedy. You furnished your house, Mr. Klenert. You re- 
member some things that you purchased there. 

How about the beds ? 

Mr. Klenert. Yes, sir. 

The Chairman, Let me ask you something. Let us get moving 
along. You bought a new home ? 

Mr. Klenert. Yes, sir. 

The Chairman, Did you furnish it ? 

Mr. Klenert. There was some furnishing brought over from the 
other house. 

The Chairman. I know you brought some from the other one. Did 
you buy any new furniture at the time you occupied your new home, 
your new purchase ? 

Mr. Klenert. There must have been some. I am rather vague on 
it now. I can't remember the exact details. 

The Chairman. You cannot remember what you bought or did not 
buy at that time, but you think you did buy something. Is that right? 

Mr. Klenert. Yes, sir. 

The Chairman. All right. Let us move on, 

Mr, Kennedy, How did you pay for those things that you pur- 
chased for your home ? 

Mr. Klenert. Well, not remembering exactly what it was or how it 
was, it is hard to say, Mr, Kennedy. 

Mr. Kennedy. Did you have a piano? Did you buy a piano for 
your home ? 

Mr, Klenert, Yes, I recall that, 

Mr, Kennedy, How did you pay for that piano ? 

Mr, Klenert. I think in — let's see — I would say in early June my 
lady had seen something like that that she wanted, and I believe I drew 
$2,000 from the bank. 

Mr. Kennedy. What bank did you draw the $2,000 from ? 

Mr. Klenert, That I am not certain of, but I remember drawing 
$2,000. I remember drawing $2,000. It must have been — well, what- 
ever bank — I think you have a record — whatever bank I was doing 



3306 IMPROPER ACTIVITIES IN THE LABOR FIELD 

business with then. I am not certain. I drew $2,000 casli, and we went 
to buy this piano. I tried to negotiate and tried to settle the deal at 
that time, and we did not. We couldn't reach terms, satisfactory- 
terms, at that time. 

Then, later on, maybe a week or 10 days later, we finally reached 
terms which were satisfactory, and bought it. 

Mr. Kennedy. And you bought the piano with that $2,000 that you 
withdrew from your bank account ? 

Mr. Klenert. I think it was for $3,000. 

Mr. Kennedy. Wliere did you get the other $1,000 ? 

Mr. Klenert. I think between my wife and myself we had that 
much in cash. 

Mr. Kennedy. How did you pay for the piano then ? 

Mr. Klenert. In cash. 

Mr. Kennedy. You i^aicl for it in cash ? 

Mr. Klenert. No. Oh, I remember now. We paid for it by — well, 
it was a cash sale. We paid for it — this is June 16, did you say ? 

Mr. Kennedy. I didn't. 

Mr. Klenert. Did you say June 16 before ? 

Mr. Kennedy. I didn't mention June 16. That was the day you 
said you were up in Canada with the $2,500 you spent. 

Mr. Klenert. No, I didn't say I was in Canada on June 16. 

Mr. Kennedy. I asked you about June 16 earlier, and the $2,500. 
That is the only time it has been mentioned. 

Mr. McInerney. He didn't say he was in Canada. 

Mr. Kennedy. He was spending it on Jacques, up in Canada. 

Mr. Klenert. On June 16 ? No, I don't think so, Mr. Kennedy. 

The Chairman. When were you in Canada ? 

Mr. Kennedy. June 16, $2,500. 

Mr. McInerney. That doesn't mean he was in Canada. 

Mr. Kennedy. No, but on the $2,500, that is the only time June 16 
has been mentioned. 

Mr. Klenert. I will try to give you the events of that day. I was 
due, I think, in Dan River, in Canada, and in the office all at the same 
time. That very morning I was with Tony Valente, and he was tied 
up, also, helter-skeltering around at that time, and he gave me $1,000 
that morning and he asked me to pay downtown on the gas company 
for an air-conditioning bill that he owed them. 

Mr. Kennedy. He gave you $1,000 in cash ? 

Mr. Klenert. Yes, sir, that morning. Yes, sir, 

Mr. Kennedy. June 16th ? 

Mr. Klenert. Yes, sir. It must have been that, the same day that 
this deal was made with the music people. 

I asked him if he would give me or loan me a like amount so I could 
make a similar payment for my purchase. 

Mr, Kennedy. What were you purchasing then ? 

Mr. Klenert. It was an airconditioning which we owed to them. 
He gave me $1,000. I had $2,000 of my own, and the other $1,000 that 
morning. I went downtown and went to the bank. I had other organ- 
izontal cash in my possession pending going to Canada. 

Mr. Kennedy. How much money did you have in cash on you when 
you went into the bank ? 

Mr. Klenert. I must have had at least $6,000 in cash belonging to 
the organization. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3307 

Mr. Kennedy. $3,000? 

Mr.KLENERT. No. $6,000. 

Mr. KJENNEDT. How much did you have of your own money m cash ? 

Mr. Klenert. I had 3 of my own, 1 that Mr. Valente had loaned 
me and 1 that I had to pay a bill for him with. I didn't know if I 
could take care of those bills that day, or if I had to leave town 
momentarily. On my way in, I had all this money to go either north 
or south. I took the money that I received from Mr. Valente, and 
my own, and I bought cashier's checks with them that morning. 

I then went to the office and, as I recall, I did not have to leave — 
I think, as best as I can recollect, I did not have to leave mitil the next 
day, and I was able to take care of, with my wife, the purchase on 
the piano. 

I then believe that, I can best recollect, I returned 2 or 3 days hence, 
and paid $1,000 each on the contracts that Mr. Valente and I had on the 
airconditioning. That is the best I can recollect and reconstruct. 

Mr. Kennedy. Why did you buy cashier's checks with this $5,000 ? 

Mr. Klenert. Because I had all this organizational money already, 
and I didn't want to 

Mr. Kennedy. Why were you walking around the street with $5,000 
in your pocket ? 

Mr. Klenert. Because I was going to take off into the field with it 
at any moment. 

Mr. Kennedy. But this is $5,000 of your own and Mr. Valente's. 
Why did you need $5,000 of your own and Mr. Valente's at that par- 
ticular time ? 

Mr. Klenert. I had the money, withdrawn $2,000 originally. 

Mr. Kennedy. First go back to that. Why did you withdraw the 
$2,000 then? 

Mr. Klenert. To take it down to the company and show them here 
is cash on the barrelhead to get a better buy. 

Mr. Kennedy. Did they say they would only take cash ? 

Mr. Klenert. No ; they didn't. 

The company ? 

Mr. Kennedy. Yes. 

Mr. Klenert. The company didn't say anything to me. I thought 
that I would be able to haggle favorably on a straight cash deal with 
them, if I showed the salesman money, and I wanted to buy a cash deal 
with them, make a cash deal. 

Mr. Kennedy. So you withdrew the $2,000 from your bank account ? 

Mr. Klenert. I beg your pardon? 

Mr. Kennedy. You withdrew the $2,000 from your bank account? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And went down there and showed them the $2,000 in 
cash? 

Mr. Klenert. I told them I had the cash on me and wanted to make 
a deal if the price was right. 

Mr. Kennedy. You told the man at the store that you had the cash 
on you ? 

Mr. Klenert. I might have said "I have $2,000 cash on me to take 
this deal if you give me the right price." I don't recollect actually 
waving it in front of him, no. 

Mr. Kennedy. What did he say ? 



3308 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Klenert. At that time he wouldn't budge. We didn't settle 
any sale at that time, as I recollect. 

Mr. Kennedy. And tlien between that time and June 16, and that 
was around June 4, you carried that $2,000 around with you ? 

Mr. Klenert. Yes, I did. 

Mr. Kennedy. Just in your pocket ? 

Mr. Klenert. I believe so. 

Mr. Kennedy. And then you picked up $3,000 cash more? 

Mr. Klenert. On that morning, as I just told you, I went down to 
pay some bills and did conclude the purchase at that time. Because 
at that time it was reaching sizable proportions, I reduced our per- 
sonal money to cashier's checks, the personal money. 

Mr. Kennedy. Wliy did you borrow that money, then, in order to 
buy cashier's checks ? 

Mr. Klenert. I didn't borrow it in order to buy cashier's checks. I 
got it that morning, and by that time I had been on my way trying 
to get either to Dan River or to Canada and by that time had too much 
cash on me. 

In the morning, on my way down, I reduced that personal money, 
segregated our personal money, by checks, and kept the cash organi- 
zational money which I was going to take off to use as soon as I had the 
opportunity to get out of town. 

Mr. Kennedy. Why didn't you just put it in your own personal 
bank account, the $5,000 cash ? 

Mr. Klenert. Because I had hopes that day of going down and 
transacting the business for which it was needed. 

The Chairman. Let m.e ask you this : Did you pay for the piano in 
cash or pay the cashier's checks or a personal check, or how ? 

Mr. Klenert. I gave them cashier's checks. 

The Chairman. What did the piano cost ? 

Mr. Klenert. I bought a — probably in the neighborhood of $3,000. 

The Chairman. You were carrying a lot of cash so you could get 
a good price and so forth. It seems to me it might have impressed 
you at the time as to what it finally cost you. Can you tell us ? 

Mr. Klenert. After five years I would hazard that as a fairly 
good approximation, Senator. 

The Chairman. The Chair hands you 3 checks, photostatic copies 
of the checks, dated June 16, 1952, on the City Bank of Washington, 
each check made payable to you, cashier's checks, and they appear to 
be endorsed by you, pay to the order of Security Bank, Washington, 
D. C, for deposit to the account of Campbell Music Co., Inc. 

Each check is similarly endorsed. 

I ask you to examine these photostatic copies and state if you rec- 
ognize them as such ? 

(Documents handed to witness.) 

(The witness conferred with his counsel.) 

Mr. Klenert. Yes, sir, those are my signatures, Mr. Senator. Yes, 
sir. 

The Chairman. That is correct ? 

Mr. Klenert. Yes, sir. 

The Chairman. So you recognize them and identify them. 

Mr. Klenert. I do, sir. I recognize them. 

The Chairman. Are those the checks you used to pay for the piano. 

Mr. Klenert. I think that is a very sure deduction. Senator, yes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3309 

The Chairman, You think that is a safe deduction ? 

Mr. Klenert. Completely, 

The Chairman, Thank you. 

Those checks may be made exhibit 26-A, B, and C. 

(Documents referred to were marked "Exhibits 26-A, B, and C," 
for reference and will be found in the appendix on pp. 3544— 3'546.) 

The Chairman. The Chair hands you 2 other checks of the same 
date, June 16, 1952, in the amount of $1,000 each, payable to you, 
cashiers checks, on the City Bank. On the reverse side the follow- 
ing appears : The endorsement, endorsed to Washington Gas & Light 
Co., signed by you. 

I will ask you to examine these checks and see if you identify them 
as being checks with which you paid for air-conditioning units. 

(Documents handed to witness.) 

(The witness conferred with his counsel.) 

Mr. Klenert. Tlie answer is yes, sir. 

The Chairman. That is correct. Then those will be made exhibit 
27-A and B. 

The documents referred to were marked "Exhibits 27-A and B," for 
reference and will be found in the appendix on pp. 3547-3548.) 

The Chairman. AVhat is the connection of that date and these 
checks with the union funds ? 

Mr. Kennedy. The record shows on his bank account that he deb- 
ited $2,000 on June G. These checks are dated June 16. 

Is that correct? Those checks are dated June 16? 

Mr. Klenert. The ones I was just shown ? 

Mr. Kennedy. Yes. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Mr. Chairman, I would like, if we could, to put Mr. 
Calabrese on. 

TESTIMONY OF ALPHONSE F. CALABEESE— Resumed 

The Chairman. Mr. Calabrese, you have been previously sworn. 

You may proceed to state what records you have and what they 
show regarding these transactions. 

Mr. Calabricse. I have before me exhibit 24 which indicated that, 
according to Mr. Janson's supplement, two checks, dated June 16 
were made out to cash on the City Bank, on the union account, for 
expenses incurred at Dan River and at Canada, and they are both in 
the amount of $2,500. Thev were endorsed bv Helen LaPlaca, the 
bookkeeper at the UTWA. 

We have elicited from JVIiss LaPlaca that this money was obtained 
in cash from the bank, and that she then turned it over to Mr. Klenert, 
She does not 

The Chairman. Is that on the same date as these checks? 

Mr. Calabrese. That is correct. 

The Chairman. $5,000. Two $2,500 checks ? 

Mr. Calabrese. Eor cash. 

The CiTAiRiMAN. That was used in checks for cash? The checks 
were made to cash ? 

Mr. Calabrese. Yes. 

The Chairman. And the lady in the union office there endorsed 
them, secured the cash, turned it over to Mr. Klenert ? 

S9330 — 57 — pt. 9 7 



3310 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Calabrese. That is correct. 

The Chairman. Is that correct ? 

Mr. Calabrese. That is correct. 

The Chairman. That is the same day as these $1,000 cashier's 
checks ? 

Mr. Calabrese. Yes, sir. 

The Chairman, All right. 

Mr. Calabrese. And the account of the UTWA indicates that the 
$5,000 was debited on the 16th and posted the next day, on June 17. 

On June 16, 1952, INIr. Klenert purchased the 5 cashier checks just 
put into evidence, made to Mr. Lloyd Klenert. They were endorsed, 
and 3 of them were endorsed by Lloyd Klenert and turned over to 
the Campbell Music Co., 2 were endorsed by Mr. Klenert and turned 
over to Washington Gas Light Co. 

The Chairman. Is there anything further ? 

Mr. Kennedy. What were those purchases for? Does the record 
show ? 

Mr. Calabrese. The records show that at the Campbell Music Co., 
a sales slip showing that on June 18, 1952, Mr. Lloyd Klenert, 511 
Boston Avenue, Takoma Park, which was his former residence before 
he moved to Kensington, purchased a Magnavox French Provincial, 
cherry, that he traded in a Magnavox radio-phonograph, and received 
$100 trade-in value. The total amount of the French Provincial 
Magnavox TV was $785.40, less the $100 trade-in, or $685.40, which he 
paid in cash. 

The explanation is that the cash could either be cash money or a 
check. 

On the same date 

The Chairman. What does it show^ the piano cost ? 

Mr. Calabrese. This is the TV set. The total amount was $785.40. 

The Chairman. That is the purchase price of it ? 

Mr. Calabrese. This is the purchase price ; yes. 

And he was allowed $100 trade-in value for the old Magnavox radio- 
phonograph which he traded in. It will be noted that this was to be 
delivered to 9801 Old Spring Koad, Eock Creek Hills, the corner of 
Saul Koad and Old Spring Koad, the new residence. 

Another sales slip dated June 18, 1952, the same address, the same 
Boston Avenue address, for Mr. Lloyd Klenert, shows that he pur- 
chased a Steinway grand and bench, reconditioned, style S, Queen 
Anne, for which he paid $3,186.50. 

The Chairman. What was it? 

Mr. Calabrese. $3,186.50. However, he turned in an Emerson for 
which he received a $400 allowance, thereby making a cash payment of 
$2,786.50. This also was to be delivered to 9801 Old Spring Road, 
Rock Creek Hills. Three thousand dollars of the total of $3,471.90 
emanated from the 3 cashier's checks which he endorsed and turned 
over to Campbell Music Co. on June 18. Fom- hundred and seventy- 
one dollars and ninety cents, according to the bookkeeper at Campbell 
Music Co., could liave been cash or check, Tliey did not keep any 
detailed record at that time. 

The Chairman. Either cash or a check ? 

Mr. Calabrese. Or a check. That is correct. 

The Chairman. Is there anything further ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3311 

Mr. Kenxedt. Mr. Cliairman, I tliink Mr. Klenert can step aside. 
We have another witness. 

The Chairman. Those documents or sales slip mav be made exhibits 
28 and 29. \ 

(The docmiients referred to were marked "Exhibits 28 and 29," for 
reference and will be found in the appendix on pp. 3549, 3550.) 

TESTIMONY OF LLOYD KLENERT, ACCOMPANIED BY COUNSEL, 
JAMES M. McINERNEY— Resumed 

Mr, Kennedy. Mr, Klenert, is it true, before you go, that this money 
that is marked to Canada, the $6,000 plus the $2,500, was actually used 
up in Canada, spent up in Canada ? , 

Is that right ? 

Mr, Klenert. Yes, sir. 

Mr. Kennedy. It was not used for any of these purcliases? 

Mr. KxENERT. No, sir. 

Mr. Kennedy. None of the $2,500 charged to Dan River Avas used 
for the purcliases of your piano or air conditioner ? 

Mr. Klenert, No, sir. 

Mr. Kennedy, Absolutely not? 

Mr, Klenert, No, sir. 

Mr. Kennedy. It was all your own money ? 

Mr. Keenert. Yes, sir, 

Mr. KJENNEDY. ^\j[id the $2,500 tliat was charged to oi-gtinizational 
expenses up in Canada on June 16, that was actually spent up in 
Canada ; is that right ? 

Mr. Klenert. Yes, sir, 

Mr. Kennedy. And it was given to Jacques, the $2,500 ? 

Mr. Klenert, Seven thousand five hundred dollars of the $8,500 
was spent as I outlined, 

Mr. Kennedy, The $2,500 was part of that and that was given to 
Jacques ? 

Mr, Klenert, Doled out ; yes, sir. 

Mr. Kennedy, To Jacques ? 

Mr, Klenert. Yes, sir. 

Mr. Kennedy. And you did not use any of it for your air condi- 
tioner ? 

Mr. Klenert. No, sir, 

Mr. Kennedy, None of it for your piano ? 

Mr. Klenert, No, sir, 

Mr. Kennedy, None of it was used for Mr. Valente's air condi-* 
tioner ? 

Mr. Klenert, No, sir. 

The Chairman. Stand aside for the moment. 

Call the next witness. 

(Members present at this point: Senators McClellan and Gold- 
water, ) 

Mr. Ivennedy. Mr. Krause ? 

The Chairman. Mr. Krause, will you be sworn, please ? 

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

Mr. Krause. I do. 



3312 IMPROPER ACTIVITIES IN THE LABOR FIELD 

TESTIMONY OF A. FRANK KRAUSE, JR. 

The Chairman. State your name, your place of residence, and busi- 
ness or occupation. 

Mr. Krause. My name is A. Frank Krause, Jr., I live at 1327 Larcli- 
mont Drive, Falls Church, Va. I am presently president of Neskco 
Engineering Corp. 

The Chairman. President of what ? 

Mr. Krause. Xeskco Engineering Corp., Chantilly, Va. 

The Chairman. You are familiar with the rules of the committee. 
You are entitled to counsel, if you desire. 

Do you waive counsel ? 

Mr. Kraus^. I waive counsel. 

The Chairman. Were you formerly employed by the Washington 
Gas Light Co. ? 

Mr. Krause. Yes, I was employed there. 

The Chairman. In what capacity did you work for them in 1952 ? 

Mr. Krause. In 1952 I was a sales engineer handling air condition- 
ing for the company. 

The Chairman. Proceed, Mr. Counsel. 

Mr. Kennedy. In 1952, did you have some conversations with Mr. 
Klenert about installing an air-conditioning unit in his newly pur- 
chased home ^ 

Mr. Krause. Yes, I did. 

Mr. Kennedy. Would you tell us about those conversations ? What 
was required ? 

Mr. Krause. Well, Mr. Klenert had — I had done business with Mr. 
Klenert about a year previous to this, and installed air conditioning 
in his Takoma Park home. He was entirely satisfied with the instal- 
lation. He was contemplating buying this home up on Alfred Ray 
Koad, I think it is. So before he completed the purchase for it, he 
wanted to find if it was practical to install air conditioning. After 
an engineering survey, we convinced ourselves that we could install 
a system for him that would be satisfactory to his desire. 

Mr. Kennedy. Was that on just Mr. Klenert's home, or did he also 
speak to you about Mr. Valente's home ? 

About this time was 

Mr. Krause. As I recall, I think the conversation was just about Mr. 
Klenert's home. 

Mr. Kennedy. Did you ultimately have conversations with him 
about Mr. Valente's home ? 

Mr. Krause. Yes ; later. 

Mr. Kennedy. Were you to install the air-conditioning system for 
Mr. Valente's home also ? 

Mr. Krause. Yes. It came about that by doing both jobs, we were 
able to make a better financial arrangement with him. 

Mr. Kennedy. Just answer the question. Wasn't it agreed that you 
would install the air-conditioning unit in Mr. Valente's home as well as 
Mr. Klenert's? 

Mr. Krause. Yes. 

Mr. Kennedy. Did you take steps to do that, to install that air- 
conditioning? 

Mr. Krause. Yes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3313 

Mr. Kennedy. You went up there. And did you install the air 

conditioning ? 

Mr. Krause. Yes. We installed it after there was a settlement of 
the property ; yes. 

Mr. Kennedy. The first conversations you had with him were prior 
to the settlement on the property, is that right ? 

Mr. Kkause. Yes. Yes, indeed. 

Mr. Kennedy. Was it a big job to install the air-conditioning unit? 
Tell us about what you had to do. 

Mr. Krause. Well, these were new houses, and they had been buil^ 
for a diti'erent type heating system. To accommodate a complete air- 
conditioning system required some extensive work. We had to refit the 
lioi'se to accommodate a duct system and to make a presentable job 
architecturally, too. 

Mr. Kkxxedy. What does that mean? "Wliat did 3'ou have to do? 

Mr. Krause. Well, we had to cut some of the plaster from the ceil- 
ings, install duct work and ceiling diff users. As I remember it, we 
removed the existing system and installed this system because it was 
an all-year unit. In other words, it provided heating and cooling from 
one source. So the system that was in there was of no value and it 
just took up space. Mr. Klenert did not want it there. 

Mr. Kennedy. So you took out the old heating system and installed 
this^ 

Mr. Krause. I don't believe we took it out. I think that arrange- 
ment Wits made, I think, with the builder to take it out. 

Mr. Kennedy. Did you make that aiTangement? 

Mr. Krause. No, I did not make that arrangement. 

Mr. Kennedy. Did you have to do some construction work on Mr. 
Valente's home ? 

Mr. Kkauoe. Yes. They were homes paralleling the same condi- 
tions. 

Mr. Kennedy. Did you have to do some construction work on Mri 
Valente's home, also, to install this ? 

Mr. Krause. Yes. 

Mr. Kennedy. While you were out there, were they moving the fur- 
niture and the rugs in, and the drajDes ? 

Mr. Krause. No. They couldn't move in, because we were cutting 
plaster. Tlie crew was out there. It wasn't the kind of a situation 
that anybody would move in until we had gotten further along. They 
didn't move in until, I would say, we were probably about 3 weeks after 
we had started the job. 

As I remember it, it M-as a liurry-up job done so they could move in, 
and I think we had something like a 1-month period to do it. 

Mr. Kennedy. And were you ever there after they had moved in ? 

JNIr. Krause. I was there numerous times. I would say practically 
every other day to check on the job. 

Mr. Kennedy. While you were there were they moving an^'' of their 
furniture in, or the rugs ? 

Mr. KifAUSE. Towards the last part of the installation, completing it, 
adjusting it. 

Mr. Kennedy. Were these items new or were they old items ? 

Mr. Krause. Were they what ? 

Mr. Kennedy. For instance, the rugs, were they new rugs? Did 
they liave to be fitted to the floors ? 



3314 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Krattse. "Well, as I recall it, Mr. Kennedy, there was quite a 
period of time there that the house was pretty bare. In fact, I won- 
dered myself. I was hurrying to try to get tlie job done and there 
didn't seem to be too much moving in. All of a sudden they did move 
in, as I remember it, and I think a lot of furnishings were new. It 
was a different type house than what he had been living in. 

Mr. Kennedy. A^^iat arrangements were made as far as paying you 
was concerned ? ^Vhat conversations did you have with Mr. Klenert 
about that? 

Mr. Krause. Well, as I said before, Mr. Klenert had demonstrated 
himself to be a very favorable credit risk to us, having done business 
with him previously. So when I wrote the contracts, I wrote them for 
cash because there wasn't any question about his credit. He had al- 
ready established himself and proved bej^ond any doubt that he was a 
good customer. 

I don't know just exactly what the date was any more now, but I 
do remember I wrote the contracts for cash upon completion. 

The Chairman. The Chair presents to you what purports to be 
photostatic copies of two contracts, one nmnbered 5607, in the name of 
Mr. Anthony Valente, and another numbered 5609 in the name of Mr. 
Lloyd Klenert. Will you examine these photostatic copies and see if 
you recognize them as being photostatic copies of the contracts to 
which you referred? 

(Documents handed to witness.) 

Mr. Krause. These are not the original contracts. 

The Chairman. I beg your pardon ? 

Mr. Ivrause. I say these are not the original contracts. 

The Chairman. What are they ? 

Mr. Krause. These are the replacement contracts that I wrote at a 
later time to replace the original contracts. 

The Chairman. Are the original contracts attached? See if you 
can find the original contracts attached. 

I believe I have here a photostatic copy of the original contract 
with with Mr. Valente. Examine this photostatic copy and see if you 
with Mr. Valente. Examine this photostatic copy and see if you 

(Document handed to witness.) 

Mr. Krause. Yes, this is the original contract for the Valente job. 

The Chairman. That will be made exhibit No. 30, for reference. 

(The document referred to was marked "Exhibit No. 30," for ref- 
erence and may be found in the files of the select committee.) 

The Chairman. Take the other Valente contract there and let us 
identify it, if you can. You said those were replacement contracts. 

Mr. Krause. Yes. This replaces that contract. 

The Chairman. You have the replacement contract for Mr. Valente, 
and that is the document you have in your hand now ? 

Mr. Krause. Yes. 

The Chairman. That may be made exhibit 31, for reference. 

(The document referred to was marked "Exhibit No. 31," for 
reference and will be found in the appendix on pp. 3551-3552.) 

The Chairman. Let me ask the staff this question: Do we have 
the original contract with Mr. Klenert ? 

Mr. MiLLSS. No, sir. The Washington Gas Light Co. couldn't find 
the original contract in their files. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3315 

Tlie Chairman. Do you have there the replacement contract for 
Mr. Valente ? 

Mr. I^JRAUSE. Yes. 

The Chaieman. Do you identify it as such ? 

Mr. Krause. I do. 

The Chairman. That may be made exhibit 32. 

(The document referred to was marked "Exhibit No. 32," for ref- 
erence and will be found in the appendix on pp. 3553-3554.) 

Mr. Kennedy. How did you ultimately get the first downpayment, 
and how much was it ? 

Mr. IvRAusE. I would have to have that contract, please. I can't 
remember something for 5 years. 

(Document handed to witness.) 

Mr. Krause. On Mr. Klenert's house it was $1,377 downpayment. 
That left a principal unpaid balance of $5,000, and a carrying charge 
for 48 months, which would be 4 years, payable monthly. 

Mr. Kennedy. And what was it for Mr. Valente ? 

Mr. Kratjse. Mr. Valente's sale was $6,259, with a downpayment of 
$1,259, leaving a principal unpaid balance of $5,000, and a carrying 
charge. 

Mr. Kennedy. What was the total downpayment, then, that had to 
be made ? 

Mr. Krause. $2,636. 

Mr. Kennedy. $2,636. How were you paid that, the original down- 
payment, of $2,636, and on what date ? 

Mr. Krause. Well, I presume I was paid that on June 17, because 
I would have no other reason to write this contract unless it was in 
force at that time. 

Mr. Kennedy. How weie you paid ? 

Mr. Krause. As I recall it- 
Mr. Kennedy. Do you have any recollection of what occurred at 
that time ? 

Mr. Krause. As I recall it, ISIr. Klenert discussed with me the pos- 
sibility of changing those contracts to time payment. As I have al- 
ready stated, there wasn't any questions about Mr. Klert's intentions 
or otherwise. He established himself as a very good customer. So 
we rewrote the contracts and gave him full time to pay for it, which 
would be 48 months. He asked me if I would come up to his office with 
the new contract, and I did that. He paid me at that time, while I 
was up there. 

Mr. Kennedy. Just what occurred on the day that he paid you, 
and how did he pay you ? That is what I am trying to establish. 

Mr. Krause. Well, I gave him the amounts that would be required, 
and 

Mr. Kennedy. Klenert had signed the contract for Mr. Valente 
also? 

Mr. Krause. No, sir. He couldn't sign. All he signed — the only 
thing he signed for Valente was the contract proposal, which outlined 
the scope of work that we were to do. 

Mr. Kennedy. All right. He signed that for Mr. Valente ? 

Mr. Krause. As far as the contract goes, Mr. Valente had to sign 
that. 



3316 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Kennedy. So you were owed $2,636. How were you paid the 
$2,636? What happened? 

Mr. Krause. I think I was in Mr. Klenert's office when he gave me 
some cashier's checks, and my best recollection is that they only 
amounted to $2,000, and the balance of $636 he paid me by personal 
check. 

Mr. Kennedy. Did you raise any question at that time about cash- 
ier's checks ? 

Mr. Krause. I did mention something to him, because they were 
negotiable. I never accepted cash. 

Mr. KJENNEDY. Why wouldn't you accept cash ? 

Mr. Krause. Well, I never liked to accept cash in any form on our 
transactions because there was no record of it. 

Mr. Kennedy. What did he say as far as this $2,000 in cashiers^ 
checks ? 

Mr. Krause. Well, I don't think he really said anything, Mr. Ken- 
nedy. I think I was the one that said something to him about it. 

Mr. Kennedy. Did he answer anything ? 

Mr. Krause. I think he probably said "It's good money" or some- 
thing like that, and, of course, it was. The only thing I was worrying 
about was the fact that they were negotiable. 

Mr. IvENNEDY. Did he have other cashiers' checks there ? 

Mr. Krause. As I recall, he had some other checks there; yes. 

Mr. Kennedy. What did he do ? He just gave you a couple of them^ 
is that right, endorsed them over to you ? 

Mr. Krause. He had two earmarked for me : yes. He knew what the 
transaction was, because I told him on the phone how much money was 
required. 

Mr. Kennedy. And then he gave you a personal check for $636, is 
that right? 

Mr. Krause. That is right. 

Mr. Kennedy. And that was to cover both the downpayments for 
both Mr. Klenert and Mr. Valente ? 

Mr. Krause. It covered both downpayments and put the contracts 
in force, right. 

The Chairman. Thank you very much. INIr. Krause. You may 
stand aside. 

TESTIMONY OF ALPHONSE E. CALABRESE— Resumed 

]Mr. Kennedy. ]Mr. Calabrese, have you made a study of the bank 
accounts involved, regarding the $636 ? 

Mr. Calabrese. Yes, sir ; I have. 

Mr. Kennedy. And you find there is a debit of $636 ? 

Mr. Calabrese. Yes. Mr. Klenert's account was debited on June 
25, 1952, in the amount of $636, which appears to be the additional 
$636 for the downpayment made to the Washington Gas Light on the 
two air-conditioning units. 

Mr. Kennedy. In connection with Mr. Klenert's testimonj' about a 
$2,000 withdrawal, there is a $2,000 withdrawal, is there not ? 

Mr. Calabrese. There is a $2,000 debit on June 6, 1952, in Mr. Klen- 
ert's account at the City Bank. 

Mr. Kennedy. And these transactions took place June 16 and 17 ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3317 

JNIr. Calabrese. I believe the Campbell Music was June 18, and 
Washington Gas Light was June 17. 

Mr, Kenxedt. And the cashiers checks were purchased on what day ? 

Mr. Calabrese. June 16, 1952. 

Mr. Kennedy. And those cashiers checks were then used for — — 

Mr, Calabrese. For the purchases at Campbell IMusic Co. and for 
the downpayments on JNIr. Klenert's and INIr. Valente's air-condition- 
ing units at their new homes. 

Mr. Kennedy. $2,000 for the latter and $3,000 for the former, is 
that right ? 

Mr. Calabrese. That is correct. 

The Chairman. Thank you, Mr, Calabrese, 

The Chair will announce tliat we will have to recess now because this 
room has been engaged for another meeting, soon to follow. We an- 
ticipate that meeting will be over around 2 o'clock. We will make cer- 
tain, however, that the room will be available to us. 

When I recess, we will recess until 2 : 30 this afternoon. 

Counsel has one more question. 

Mr. Kennedy. Mr. Calabrese, so that we can clarifv^ the record, two 
$2,500 checks, one charged to Dan River and the other to organiza- 
tional expenses in Canada, were cashed on June 16 ? 

Mr. Calabrese, That is correct. 

Mr. Kennedy. And that is the same day that the 5 cashiers checks 
amounting to $5,000 were purrhased, is that correct? 

Mr. Calabrese. That is right. 

Mr. Kennedy. The only substantive withdrawal from the bank ac- 
counts of Mr. Valente or Mr, Klenert during this period of time was 
from Mr, Klenert's bank account on June 6, 1952, is that right? 

Mr. Calabrese. $2,000 ; that is correct. 

The Chairman. The committee will stand in recess until 2 : 30. 

(Whereupon, at 11 : 55 a, m., the committee recessed, to reconvene 
at 2 : 30 p. m,, the same day.) 

(Members present at the taking of the recess: Senators McClellan 
and Goldwater.) 

afternoon session 

(Members present at the convening of the afternoon session: Sena- 
tors McClellan and Goldwater.) 

The Chairman. The committee will come to order. 

Call the next witness. 

Mr. Kennedy. Mr. Jansson. 

The Chairman. Will you be sworn, please, sir. 

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. Jansson. I do. 

TESTIMONY OF ERIC G. JANSSON 

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

Mr. Jansson. My name is Eric G. Jansson, My residence is 4112 
Blackthorn Street, Chevy Chase, Md. ; certified public accountant in 
Washington, D. C. 



3318 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. Do you have counsel with you, Mr. Jansson? 

Mr. Jansson. No, sir ; I have an associate with me. 

The Chairman. You have an associate with you ? 

Mr. Jansson. Yes, sir. 

The Chairman. Is he to testify ? 

Mr. Kennedy. He might. 

The Chairman. Will you be sworn, please, too ? 

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, Cunningham. I do. 

TESTIMONY OF MARK L. CUNNINGHAM 

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

Mr. Cunningham. I am Mark L. Cunningham, 12003 Claridge 
Road, Silver Spring, Md. ; certified public accountant, with Eric Gr. 
Jansson & Co. 

The Chairman. Thank you. 

Of course you know the rule that witnesses may have comisel present 
while they testify. Do you waive that rule ? 

Mr. Cunningham, i es. 

Mr. Jansson. Yes. 

Mr. Kennedy. You are the head of the accounting firm, Mr. Jans- 
son? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. What is the name of the firm ? 

Mr. Jansson. Eric Jansson & Associates. 

Mr. Kennedy. How many accountants do you have working ? 

Mr. Jansson. Mr. Cunningham is a partner who is certified, and we 
have two junior accountants. 

Mr. Kennedy. For the most part, you handle labor unions; do you? 
You do the accounting work for the labor unions ? 

Mr. Jansson. That is correct, sir. 

Mr. KJENNEDY. Was one of the labor unions that you were doing 
work for the textile workers ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. The United Textile Workers. 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. When did you start to work for them ? 

Mr. Jansson. Approximately 1945 — 1944, 1945, or 1946, approxi- 
mately. 

Mr. Kennedy. You were working for them in 1952? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Specifically, were you working for them in May, 
June, and July of 1952 ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Did you prepare their accounting reports during that 
period of time ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Were you awaie of the fact that there had been an 
outlay of, amongst others, of $57,000 for organizational expenses ? 

Mr. Jansson. Yes, sir ; I recognize the figure. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3319 

Mr. Kennedy, Was there an original expenditure of $95,000 that 
was reported to you ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Would you tell us what that was for, the original 
$95,000? 

Mr. Jansson. The original $95,000 was a payment to the Mutual 
Title Co., reported as a deposit on the purchase of a building. Two 
weeks later the title company returned the check on request and that 
ended that transaction with the $95,000 on their records. 

Mr. Kennedy. Had it been a deposit on a building ? 

Mr. Jansson. That is what the reported purpose was ; yes. 

Mr, Kennedy. Do you know if it was used for any other purpose ? 

Mr. Jansson. No, sir. 

Mr, Kennedy, Do you know what building they had in mind? 

Mr. Jansson. No, sir. 

Mr, Ivennedy. Did you know that $57,000 of that $95,000 was used 
as a downpayment on 2 personal homes for Mr. Klenert and Mr. 
Valente? 

Mr. Jansson. No, sir. 

Mr. Kennedy. The $95,000 was returned? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. And did you, from reading the letter from Mr. Quig- 
ley of the Mutual Title Co., understand that that $95,000 had been as 
a deposit on a building ? 

(The witness conferred with his associate.) 

Mr. Jansson. No ; not the $95,000. That went out and came back in. 

Mr. Kennedy. Did you understand that that $95,000 had been used 
during that 2-week period that it was as a deposit on a building? 

Mr. Jansson. No, sir. 

Mr. Kennedy. What did you understand the $95,000 was for? 

Mr, Jansson, As a deposit held by the Mutual Title Co. and re- 
turned at the textile workers request, 

Mr. Kennedy, "\^^iat was the deposit for ? 

Mr. Jansson. For the deposit on a pu.rcliase of a building. 

Mr. Kennedy, What purchase of a building ? 

Mr, Jansson, For the purchase of a building which evidently had 
not been selected, 

Mr. Kennedy. The building had not been identified ? 

Mr. Jansson. The building had not been identified. 

Mr. Kennedy. Was there a later time in the middle of May 1952, 
when there was some organizational expenses ? 

Mr. Jansson. Yes, sir. In May of 1952, as part of their expendi- 
tures for what was recorded as special organizing campaign, there was 
a total of $142,000, which included salaries and expenses of various 
men out in the field. It included $74,500 in checks made out to cash. 
Prior to this time, no checks had been made out to cash identified as 
for organizational purposes. 

The checks had been made to payees, to whom it was due. These 
checks made out approximate^ the same time to cash in large 
amounts — if I may in a moment refer to my notes and give you the 
details — they attracted or aroused our curiosity. We went to the two 
banks which they were drawn on, first the City Bank. They told us 
that certain checks made out to cash which were shown on the books as 



3320 IMPROPER ACTIVITIES IN THE LABOR FIELD 

being for organizing expense in various areas had actually been ex- 
changed for cashiers checks. They showed us the cashiers checks. 
They had been endorsed by — I will refer to my notes to make sure. 

Mr. Kennedy. You may refer to them now. 

Mr. Jansson. Thank you. 

{The witness conferred with his associate.) 

Mr. Jansson. Three checks were made out to cash on the City Bank, 
were exchanged for cashiers checks, one for $13,000, one for $7,000, one 
for $10,000. Cashiers checks were issued in like amount to Anthony 
Valente, endorsed by Anthony Valente, endorsed and deposited by the 
Mutual Title Co. 

Those were the only details the City Bank could give us on the 
checks made out to cash. 

We went to the Liberty National Bank and found that 4 checks had 
been presented to them made out to cash, in exchange for those 4 
checks, being for $7,000, $8,000, $5,000, and $7,000, drafts were issued 
in like amounts to Lloyd Klenert endorsed by Lloyd Klenert endorsed 
and deposited by Mutual Title Co. The balance of the checks total- 
ing the $84,500 — $74,500, correction, were made to cash in various de- 
nominations from $500 to $6,000. A number of them had no endorse- 
ments. A nmnber of them were endorsed by the bookkeeper in the 
office. They were recorded as being expenses incurred in Canada, 
Maine, the South, mid-Atlantic States, Massachusetts, Midwest, the 
international office, Dan River, Canada, and Pennsylvania. 

Mr. Kennedy. You found $57,000 worth of these checks that had 
been endorsed over to the Mutual Title Co., did you not ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. What steps did you then take as the accountant ? 

Mr. Jansson. We prepared a schedule showing those facts and re- 
ceived written assurance in the form of an affidavit from Mr. Valente 
and Mr. Klenert that that money was used for the purposes so stated 
on their records for organizing expense. 

The Chairman. As I understand you now you got an affidavit from 
them to that effect ? 

Mr. Jansson. I did at that time ; yes, sir. 

The Chairman. That the money, that $57,000, was used for organ- 
izational expenses ? 

Mr. Jansson. Yes, sir. 

The Chairman. They made an affidavit to that effect at that time ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Tell me this : Did you inquire of them as to why the 
check was made payable to the Mutual Title Co. or was endorsed by 
the Mutual Title Co. if, in fact, it was organizational expenses? 

Mr. Jannson. Yes. 

(The witness conferred with his associate.) 

Mr. Jansson. The statement was made to me by Mr. Valente that he 
had to use his own cash in connection with these organizing expenses 
listed as Canadian, New Jersey, North Carolina, et cetera, that this 
was the only way he could get his money back from the organization. 

Mr. Kennedy. That lie had to use his own cash ? 

Mr. Jansson. Had to use his own cash in a period, a weekend or 
something, prior to that. 

Mr. Kennedy. Did you raise the question of how he happened to 
have this amount of cash, $57,000 at least ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3321 

Mr. Jansson. I did, but he said he had it in his own private box, 
his own possession. 

Mr. Kennedy. Did you raise the question about that ? 
Mr. Jansson". No, sir. 

Mr. Kennedy. "Wliat salary was he getting at that time ? $7,500 ? 
Mr. Jansson. $7,500 or $8,000. 

Mr. Kennedy. liid you raise a question how somebody could have 
$57,000 of cash in a box when they were only making $7,500 or $8,000 
a year ? 

Mr. Jansson. Around Washington I wouldn't dare to ask some 
question because some men making $5,000 a year, their wives have in- 
comes of $50,000 a year. 

Mr. I^NNEDY. Did you understand that w^as true of Mr. Kienert, 
that his wife had a large income ? 

Mr. Jansson. No, sir. I didn't mean to infer that that had been told 
to me. I made no inquiry as to why he should have that money lying 
in his own possession. 

Mr. Kennedy. You secured affidavits from both Mr. Valente and 
Mr. Kienert that this money, this $57,000, plus the $17,500, had, in 
fact, been used for organizational expenses ? 
Mr. Jansson. Yes, sir. 

(At this point, Senator Mundt entered the hearing room.) 
Mr. Kennedy. Approximately what date was this that you took 
those affidavits? 

Mr. Jansson. In the month of July, prior to the issuance of the 
report dated July 25. 

Mr, Kennedy. You issued your report then ? 
Mr. Jansson. Yes, sir, 

Mr. Kennedy. And it showed all of these funds as organizational 
expenses in the report ? 

^Ir, Jansson. With a detailed breakdown showing what I have 
just narrated to you about the issuance of these checks, what was 
recorded on the books, and what the banks had revealed. That sched- 
ule was a part of that report. 

Mr. Kennedy, I am talking about the first report that you issued, 
Mr, Jansson, Yes, sir, that is it, 

Mr. Kennedy. Was that detail as to the organizational campaign, or 
did they just give a lump sum of $142,794.92 ? 

Mr. Jansson. No. The $142,000, which was the total amount, had 
a schedule breaking it down, and that schedule breaking it down 
showed cash of $74,500, 
Mr. Kennedy. It showed cash of how much ? 

Mr, Jansson. $74,500, for which we prepared another schedule, 
which was schedule 4, breaking down the $74,500 which I have re- 
ported to you. 

Mr. Kennedy. Is that an unusually high amount for this union, 
$74,500 for a 3-month period, for organization expenses, in cash? 

Mr, Jansson, Well, it is the first time there had been any organiza- 
tional expenses as such, in large amounts to cash. The expenditures 
of large amounts of money right at this time were not entirely a 
surprise to me because I was aware of the fact that they were trying to 
acquire into their organization approximately 40,000 members of their 
rival CIO union, who were disgruntled in their own organization, and 
I knew that large sums would probably have to be spent to complete 



3322 IMPROPER ACnVITIES IN THE LABOR FIELD 

that affiliation, and in anticipation of that they were trying to borrow 
funds from other banks in order to help accomplish that purpose. 

So the actual amount of money being spent of itself was not sur- 
prising at that time, but the fact that the checks were made to cash was 
not common in that organization. 

Mr. Kennedy. You made this report. Did you have anything to 
do with it after that, after you filed this report covering the 3-month 
period, after you filed this report on July 25 ? 

Mr.jANSsoN. I did, sir. 

The Chairman. Let us make that report an exhibit so it will be in 
the record. 

The Chair hands you what purports to be a photostatic copy of the 
audit report about which you are testifying. Will you examine it 
and identify it, please, so it may be made a part of the record ? 

(Docmnent handed to witness.) 

(The witness conferred with his associate.) 

Mr. Jansson. This is not the report I was talking about, sir. This 
is a report which I think a question has just been asked me which would 
bring me into that report. 

The Chairman. Where is the report that you have been talkmg 
about ? 

Mr. Kennedy. Do you have a copy of that report ? 

I think that is the report and then you made some changes on that. 

Mr. Jansson. That is correct. 

Mr. Kennedy. I think that can cover both reports. 

Mr. Jansson. Yes. I have all the copies of this report in my files. 
This is a sixth carbon. 

If you want one that is clearer you can have it, by phoning the office, 
or you can have this one. 

Mr. Kennedy. Which is this report you have in your hand now ? 

Mr. Jansson. The one I just described dated July 25, in which I 
described these scliedules breaking down the $74,500 in cash. 

The Chairman. Can you supply that copy to the committee? 

Mr. Jansson. Yes, sir. You can keep this one until I can have 
the office send down one of the earlier copies, or the original. 

The Chairman. All right. That report about which you just testi- 
fied will be made exhibit 33, for reference. 

(The document referred to was marked "Exhibit 33," for reference 
and may be found in the files of the select committee. ) 

Mr. Kennedy. This report was filed the 25th of July. After that, 
did you have anything further to do with this matter beyond that 
date? 

(At this point. Senator Curtis entered the hearing room.) 

Mr. Jansson. Yes. On August 26, 1 received a phone call request- 
ing a conference on the next day. 

The Chairman. Requesting what ? 

Mr. Jansson. Requesting a conference with Mr. Valente and Mr. 
Klenert. 

The Chairman. ■\^1io did the call come from? 

Mr. Jansson. From their office, from the textile workers office. 

Mr. Kennedy. Did you make a memorandum of that call ? 

Mr. elANSSON. Yes, sir. 

Mr. Kennedy. Do you have that memorandum with you ? 

Mr. Jansson. The original I niay not have. 
(The witness conferred with his associate.) 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3323 

The Chairman. The Chair presents to you what purports to be 
a photostatic copy of the memorandum which you made at the time. 
Will you examine it and identify it, please ? 

(Document handed to witness.) 

(The witness conferred with his associate.) 

Mr. Jansson. That is correct. 

The Chairman. That will be made exhibit No. 34. 

(The document referred to was marked "Exhibit No. 34," for refer- 
ence and will be found in the appendix on p. 3555.) 

The Chairman. The Chair presents to you what he is advised is a 
subsequent memorandum you made regarding this matter. Will you 
examine it and state if that is a carbon copy of a subsequent memo- 
randum you made regarding the telephone call ? 

( Document handed to witness. ) 

Mr. Jansson. Yes, sir. 

The Chairman. That will be made exhibit No. 35. 

(The document referred to was marked "Exhibit No. 35," for 
reference and will be found in the appendix on p. 35'56.) 

Mr. Jansson. The reason I didn't have these when you asked the 
question is that those were in the files which Mr. Henig had in his 
possession. 

The Chairman. All right. 

Mr. Kennedy. You were telling us about what happened. The re- 
port was filed on July 25, 1952, and then you said you received a tele- 
phone call on August 25, is that right, of 1952 ? 

Mr. Jansson. Yes, sir. 

Mr. KJENNEDT. Do you have a memorandum on that telephone call ? 

Mr. Jansson. Yes. I have an abbreviation of this memorandum. 
I can tell you the contents of it. 

Mr. Vaiente said he and Mr. Klenert had made financial arrange- 
ments making it possible to get back the $57,000 shown in schedule 4 
of the report which you have. The check for $57,000 from the Mutual 
Title Co., plus the letter from the Title Co. 

Mr. Kennedy. I think it would be much better if you read the 
memorandum, rather than to read a summary of it. 

Mr. Jansson. All right. 

Mr. Kennedy. Do you have it there ? 

Mr. Jansson. Yes. 

On August 26, a call from Mr. Klenert. Asked me to stop by on August 27, 
Mr. Klenert and Mr. Vaiente, 

designated here as K and V — 

handed me a letter with check from Title Co. Upon their return to me of all 6 
copies of the report delivered on July 25, they in turn requested the return of their 
affidavit upon the return of the $57,000- 

Mr. Kennedy. I am afraid you are going too fast. 

They requested what from you ? 

Mr. Jansson. I will start at the beginning of that sentence. 

Upon their return to me of all 6 copies of the report delivered on July 25, 
they in turn requested the return of their affidavit upon the return of the $5 . .000 
from the title company which appeared to have been the principal reason for the 
affidavit. I acceded to their request and returned the affidavit. The remaining 
$17,500 in checks listed in the affidavit over and above the $57,000 would still 
have to be explained to proper inquiry, with or without an affidavit. To sum- 
marize, the $57,000 total of checks for which cashier's checks and drafts had 



3324 IMPROPER ACTIVITIES IN THE LABOR FIELD 

been issued to Mr. Valente and Mr. Klenert, then cleared through the title com- 
pany, required their written assurance to me. When it came back into the or- 
ganization treasury from the same title company, then the question — 

this was written at that time — 

then the question today is whether the officers had the authority to use the money 
for 3 months as they did. For this reason I returned to Washington on Sep- 
tember 8, and compiled the supplement to the August 28 report itemizing the 
$57,000 and the $17,500 totaling $74,500, all drawn payable to cash. 

Mr. Kennedy. I have some questions that I want to ask you about 
that. 

Mr. Jansson. Yes. 

Mr. Kennedy. First on the question of the affidavit, did you return 
all copies of the affidavits to them ? 

Mr. Jansson. No, sir. 

Mr. Kennedy. You kept certain copies of the affidavits ? 

Mr. Jansson. I returned the signed copy. I have the other copies. 
The man had those in the file in his possession. 

Mr. Kennedy. Have you turned those over to the committee ? 

Mr. Jansson. Yes, sir. 

The Chairman. The Chair hands you what purports to be a copy 
of an affidavit on blank date, some time in July 1952, prepared appar- 
ently for the signature of the president of the UTWA and the secre- 
tary-treasurer of the UTWA. Will you examine this photostatic 
copy and state whether that is a copy of the original affidavit about 
which you have been testifying? 

(Document handed to witness.) 

Mr. Jansson. Yes, sir. 

The Chairman. That is a carbon copy, a photostatic copy of it? 

Mr. Jansson. Yes, sir. 

The Chairman. That may be made exhibit No. 36. 

(The document referred to was marked "Exhibit No. 36" for refer- 
ence and may be found in the files of the select committee and also 
follows below.) 

The Chairman. The Chair now hands you what purports to be a 
photostatic copy of a receipt. I will ask you to examine that and 
state if you identify it, and, if so, relate what it is. 

(Document handed to witness. The witness confered with his as- 
sociate. ) 

Mr. Jansson. Yes, sir. 

The Chairman. What is it, Mr. Jansson ? 

Mr. Jansson. It is a receipt where they came from their office to my 
office for the affidavit. 

The Chairman. That is a receipt for the affidavit ? 

Mr. Jansson. Returning the affidavit to them ; yes, sir. 

The Chairman. You got a receipt from them when you returned 
it? 

Mr. Jansson. Yes, sir. 

The Chairman. That may be made exhibit No. 37. 

(The document referred to was marked "Exhibit No. 37" for refer- 
ence and will be found in the appendix on p. 3557.) 

Mr. Kennedy. Mr. Chairman, may we read this affidavit into the 
record ? 

The Chairman. Exhibit No. 36, the affidavit, may be read into the 
record. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3325 



Mr. Kenxedy (reading) : 



Affidavit. District of Columbia. 

Personally appeared before me (blank), a notary public in and for the District 
of Columbia, Anthony Valente and Lloyd Klenert, president and secretary- 
treasurer respectively of the United Textile Workers of America, who upon 
their respective oaths, depose and state as follows : 

That all funds described in the following listed checks drawn on the City 
Bank and the Liberty National Bank, as indicated, were properly used for 
organizing purposes as stated in the vouchers covering each check and as entered 
in the disbursements records of the United Textile Workers of America during 
the period April 1, 1952. to June 30. 1952 ; enumerated in the following list and 
described further in schedule 4 of my audit report for the i)eriod just stated : 



Date 


Xuniber 


Payee 


Purpose as sliown by records 


Amount 


Citv Bank: 

May 13 

Do 


35950 
35960 
35961 
36119 
36274 
36275 
36276 
36277 
36278 
36306 


Casli.... 

...do 

...do 

...do 

...do 

...do..... 

...do 

...do 

...do... . 

do 


Canadian situation 

New Jersey situation . . __ _ ... . 


$13, 000 
7,000 


Do . 


North Carolina situation . . 


10,000 


Mav 27 




6,000 
1,000 
1,000 


June 4 

Do 


Expenses, Lewiston, Maine 

Organizing expense, Snuth 


Do 

Do 

Do 

Tiirifi 5 


Organizing expense. Mid .Atlantic States 

Organizing expense, Massachusetts.. 

Organizing e:vpense, Midwpst 

Extra expense, international office 


1,000 

1,000 

1,000 

500 


June 16... 


36427 l_..do 

36428 - do _ 


Expense incurred, Dan River 


2,500 


Do 




2,500 


June 17 


36496 

A2 
A3 

A4 
A5 


...do 

...do 

...do..... 

-—do 

...do..... 


Expense incuiTed, Pennsvlyfija 


1,000 


Liberty National Bank: 
Mav 14 


Organizing expense. New York .-. .. 


7,000- 


Do 


Organizing expense, Pennsylvania . 


8, 000 


Do 

Do . 


Organizing expense. Midwest 

Organizing expense, Massachusetts 


5,000 
7,000 








Total 


74,500 













Mr. Kennedy. Is that correct ? 

Mr. Jansson. That is correct. 

Mr. Kennedy. There is a blank here for the president of the UTWA 
and the secretary-treasurer of the UTWA. Is that right ? 

Mr. Jansson. That is right. 

Mr. Kennedy. So you kept a copy of this affidavit that you have had 
made and that had been signed by ^Mr. Klenert and ^Ir. Valente ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. And they asked for the return of those affidavits ? 

Mr. Jansson. Yes, sir. After the check for $57,000 from the Mutual 
Title Co. attached to their letter stating that they were returning this 
deposit, with regrets, et cetera, they showed me the check and imme- 
diately gave it to the clerk for deposit in the National Bank of Wash- 
ington. 

Mr. Kennedy. Let me get that straight. At that period of time 
they had given you a check or showed 3'ou a check for $57,000 ? 

Mr. Jansson. This was on August 27. 

INIr. Kennedy. On August 27, when you had this meeting on which 
this memorandum is written, they brought you in a check for $57,000. 
Is that right ? 

Mr. Jansson. From the Mutual Title Co., yes, sir. 

Mr. Kennedy. And said that they were returning that, that that 
was being returned to the union funds ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Is that right ? 

Mr. Jansson. Yes, sir. 

89330— 57— pt. 9 8 



3326 IMPROPER ACTnvrriES in the labor field 

Mr. Kennedy. And in return for the affidavits that they had failed 
out, that this money had been used for organizing expenses, they 
wanted your auditing account, your auditing record, that you had 
prepared ? 

(The witness conferred with his associate.) 

Mr. Jansson. I am sorry, I didn't understand the question. 

Mr. Ejennedy. What had they requested of you when they gave you 
the $57,000? 

Mr. Jansson. They requested that we revise the report, reducing the 
orp-anizing expense by that amount of money. 

The Chairman. I understood that you had required tliem to ac- 
count for it before hand by this affidavit. 

Mr. Jansson. I had, sir, and when I was shown this letter from a 
reputable title company, with a check for $57,000, at that time the 
check and the letter from the title company seemed to be more con- 
crete evidence of what had happened than what they told me in their 
affidavit, and I was willing to follow what the letter said, that letter 
with the check for $57,000. 

The Chairman. The check for $57,000 clearly evidenced the fact 
that the affidavit was not true ; did it not ? 

Mr. Jansson. That is correct, sir. 

The Chairman. Did that not arouse your suspicion as to these 
various transactions ? 

Mr. Jansson. It did, sir. 

The Chairman. All right. 

Mr. Kennedy. They requested of you that you change your report ? 

Mr. Jansson. I agreed to reduce the special organizing expense. 

Mr. Kennedy. That is contained in this memorandum ; is that right ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. Would you read that into the record, please ? That 
is exhibit number 

Mr. Jansson. They requested 

Mr. Kennedy. That is exhibit No. what ? 

Mr. Jansson. Exhibit No. 35. 

Do you want me to start at the beginning ? 

Mr. Kennedy. Yes. 

Mr. Jansson (reading) : 

Lloyd Kleuert called me Tuesday, August 26, requesting conference on Wednes- 
day. Met In Valente's oflfice. Valente said he and Klenert had made financial 
arrangements making it possible to get back the $57,000 shown in my schedule 4. 

The check for $57,000 from the Mutual Title Co. plus a letter from the com- 
pany president was exhibited. The check was then given to clerk for immediate 
deposit in the National Bank of Washington. I agreed to reduce the special 
organizing expense by this amount. 

They requested the elimination of schedule 4, which, during that conversation, 
seemed reasonable to me and I agreed, and this change reduced the amount of 
checks drawn to cash from $7,4.50 to $1,750. They handed me the six copies of 
original report which had been delivered to them on July 28. 

Mr. Kennedy. They were returning $57,000 to you. They wanted 
you, in return, to change your report and reduce the amount that had 
been charged for organizing expenses, reduce that by $57,000, is that 
right ? 

Mr. Jansson. I am sorry, sir. If I understood the question, you say 
that they gave me $57,000. " 

Mr. Kennedy. No. $57,000 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3327 

Mr. Jansson. Was shown to me coming from the title company. 

Mr. Kennedy. To the union, is that right ? 

Mr. Jansson. Yes, sir. 

Mr. KIennedy. They wanted you, then, to change the report that 
you had prepared sliowing the organizing expenses were less by 
$57,000? 

Mr. Jansson. Yes, sir. 

Mr. KJENNEDY. And to charge $57,000 during that period of time to 
building expenses ? 

Mr. Jansson. No. A deposit on the purchase of a building. 

Mr. Kennedy. A deposit on the purchase of a building. Did you 
agree to do that ? 

Mr. Jansson. At that time, it seemed reasonable, and I did. 

The Chairman. How would that seem reasonable, after they had 
made an affidavit that they had spent the money for organizing ex- 
penses ? 

Mr. Jansson. A letter from the title company with their check. 

The title company was a reptuable, established business. The letter 
with their check for $57,000 to me was indisputable. To me it meant 
that the affidavit was not true, and I took the title company's letter in 
place of the affidavit. I do not agree that I didn't feel that there was 
something unusual about it, which will follow here in a minute when 
I describe to you about my supplementing this report. 

The Chairman. Proceed. 

Senator Mundt. At that time, Mr. Jansson, did they give you any 
reason why they had made a mistake in their original figures of more 
than half of the total amount that they had sworn they had spent in 
organizational funds ? 

Mr. Jansson. No, sir. 

Senator Mundt. They did not say anything about that at all? 

Mr. Jansson. Except, "Here is what that $57,000 was used for and 
we have it back." 

Senator JSIundt. But they just read that off. They did not say, 
"Going over our figures, we made a mistake in the $57,000"? Thej' 
made no reference to the fact that they had sworn to a falsehood ? 

Mr. Jansson. No, sir. 

Senator Mundt. Or that they had made an error some place and it 
was a mistake ? They ignored that affidavit entirely ? 

Mr. Jansson. I can't say they ignored the affidavit because they 
asked if since the $57,500 was for the purchase of a building, that that 
affidavit was no longer applicable. 

Senator Mundt. They did not ignore it, but they made no effort to 
explain to you why they were so wrong in their affidavit? 

Mr. Jansson. No, sir. 

Senator Curtis. I have just a couple of questions. 

Who employed you to serve as the auditor of their books? Was it 
these two officers in question ? 

Mr. Jansson. Not necessarily two officers in question. At the time 
I went in, I followed up a man who had to retire on account of illness. 
When I was introduced, I was introduced to the then president, Mr. 
Garman, and the secretary-treasurer, Mr. Yalente. 

I was introduced to them as the man who would follow on the man 
who had been doing it. 

S*inator Curtis. To whom did you make an auditor's report ? 



3328 IMPROPER AcnvrriEs in the labor field 

Mr. Jansson. To the executive board. 

Senator Curtis. How many copies would you deliver ? 

Mr. Jansson. Five. 

Senator Curtis. That is the executive board of the UTWA ? 

Mr. Jansson. Yes, sir. 

Senator Curtis. In the due course of things, were you required to 
give an auditor's report to anyone else ? 

(The witness conferred with his associate.) 

Mr. Jansson. No, sir. 

Senator Curtis. That is all. 

Senator Mundt. You said you delivered five copies of the report? 

Mr. Jansson. Yes, sir. 

Senator Mundt. Did you deliver the 5 in 1 package, to 1 officer, or 
did you mail to 5 different addresses the 5 reports ? 

Mr. Jansson. I took them in one package to their office. 

Senator Mundt. You delivered them to 

Mr. Jansson. To the Textile Workers headquarters office. 

Senator Mundt. Probably to the office of the secretary ? 

Mr. Jansson. Yes, sir. 

The Chairman. The Chair presents to j^ou what purports to be a 
photostatic copy of a report on audit, United Textile Workers of 
America, April 1, 1952, to June 30, 1952. I will ask you to examine 
this photostatic copy and state if you identify it as such. 

Then, I will ask you to point out the changes that you made on it. 
I assume these changes were made in August, after the report had 
been previously filed, as you testified. 

Mr. Jansson. Yes, sir. 

The Chairman. If you will please identify that, it will be made ex- 
hibit No. 38. 

(A document was handed to the witness.) 

(The witness conferred with his associate.) 

The Chairman. Do you identify that as a photostatic copy of the 
audit report ? 

Mr. Jansson. Yes, sir. 

The Chairman. It may be made exhibit No. 38. 

(The document referred to was marked "Exhibit No, 38" for refer- 
ence and may be found in the files of the select committee. ) 

The Chairman. You made certain changes. How did you make 
the changes in that report ? I asusme that is the original report that 
you originally submitted ? 

Mr. Jansson. Yes, sir. 

The Chairman. And showing $74,500 as organizational expenses? 

Mr. Jansson. Showing a reduction in the organizing expense from 
$142,749.92 to $85,749.92, a difference of $57,000. In the schedule was 
added the item "Deposit on building, see comments, $57,000." 

The Chairman. How did you make the corrections or amendments 
to that report, the original report that you prepared and submitted? 

Mr. Jansson. I am sorry. How did I physically 

The Chairman. How did you make the ameiidments, modifications, 
or changes in the original report so that it would constitute an amended 
report ? 

Mr. Jansson. The comments are not attached to this, and I don't 
have that. The comments describe the deposit on the building, but 
this, then, was the only report that was in outside hands. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3329 

They returned to me all the other copies before this one was issued. 
This was in their hands from this date, August 28, only until Septem- 
ber 8, when the supplement was issued, the September 8 supplement 
was issued. 

Senator Mundt. In other words, if I understand it, this new report 
that you now hold in your hand, the revised report, on its face makes 
no reference to these changes we have been discussing which were 
made in the original report ? 

(The witness conferred with his associate.) 

Mr. Jansson. I don't see the comments that were part of this report. 

Mr. Cunningham. This is not a complete report. It is not a com- 
plete report here. 

Mr. Kennedy. This letter, is that what you are talking about? 

Mr. Jansson. There must have been the regular comments with it. 
There are no comments with this at all. The comments which were 
part of this report are not in it. 

The Chairman. That has been made exhibit ?>8. The Chair hands 
you now what may or may not be the comments that you refer to, a 
photostatic copy of them. Please examine the document I present 
and tell us what that is. 

(Document handed to witness.) 

(The witness conferred with his associate.) 

Mr. Jansson. Yes, sir, these are the comments that were with that 
August — with that amended report. 

The Chairman. Those comments, then, will be made exhibit 39. 

(The document referred to was marked "Exhibit No. 39," for refer- 
ence and will be found in the appendix on pp. 3558-3559.) 

The Chairman. With those comments, does that constitute the com- 
plete report ? 

Mr. Jansson. No, sir. 

The Chairman. tMiat is lacking now ? 

Mr. Jansson. AVliat is lacking now is the supplement which was is- 
sued a week following this. 

The Chairman. All right. That will probably come along a little 
later. 

Mr. Jansson. Yes, sir. 

The Chairman. Senator Goldwater ? 

Senator Goldwater. Mr. Jansson, I want to ask you some questions 
relative to the duties of these various individuals that you have had 
contact with as outlined by the constitution, and get your reactions to 
some of them. You have been the auditor for this organization since 
1946? 

Mr. Jansson. Yes, sir, approximately. 

Senator Goldwater. In that time, I think you have had adequate 
opportunity to observe the operations of this organization; am I cor- 
rect? 

Mr. Jansson. Yes, sir. So far as it pertains to the international 
office here, yes. 

Senator Goldwater. That is all we are talking about. 

Concerning power, under the powers of the president, and I read 
from section 2 of article lY of the constitution: 

All orders and checks drawn on the account of the international union are 
subject to the approval of the international president. 

Mr. Jansson. Yes, sir. 



3330 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Goldwater. Has he generally followed the practice of ap- 
proving these checks or orders ? 

Mr. Jansson. Not by actually initialing every order, but I haven't 
heard of an occasion where he would have refused to initial any one 
that was handed to him. In other words, in an organization of that 
size, there are the two men or principal officers who conduct all of 
the affairs of the organization. One doesn't do much without the 
other's knowledge. In that case, I think they work together entirely. 

Senator Goldwater. It is rather obvious that under the constitution 
these two men can completely control, dominate, the actions of this 
particular union. 

Mr. Jansson. Yes, sir. 

Senator Goldwater. Section 4 of article IV says : 

He shall have the power to authorize any representative to audit the books 
and records of any local union, council, department, or in any other subordinate 
body, or to engage an accountant for such purpose whenever he deems such 
necessary. 

Do you recollect many such audits have been ordered of locals or 
subordinates ? 

Mr. Jansson. One time during the period that I was in there they 
had a man whom they called a traveling auditor, who did audit local 
union affairs on some assignment basis. He was on a regular salary. 
He would audit local unions designated by the international office. 

Senator Goldwater. Were those audits made available to the mem- 
bership of the local, to your memory ? 

Mr. Jansson. I have no knowledge of that. 

Senator Goldwater. It is true, also, is it not that the president has 
the right to fix the salaries of organize!^, representatives, administra- 
tive, technical, and clerical employees ? 

Mr. Jansson, Yes, sir. 

Senator Goldwater. And does he fix these on his own counsel, or 
does he advise with other people in the organization before they are 
fixed? 

Mr, Jansson. I have no knowledge of that, sir. But he has that 
authority. 

Senator Goldwater. Now getting over to article VI, which per- 
tains to the international secretary-treasurer, he is charged, and I read 
section 1 : 

The international secretary-treasurer shall have full charge of and responsi- 
bility for the safekeeping of all moneys, securities, or other property of the 
international union. It shall be his duty and responsibility to maintain adequate 
records of financial transactions. 

I will end the reading there, because the rest does not relate to 
money. 

In your opinion as an auditor, has he kept adequate records of 
financial transactions? 

Mr. Jansson. From the standpoint of the mechanical bookkeeping 
records, such as the cash journals and the general ledger, I would say 
"Yes." From the standpoint of detailed information on vouchers, I 
would say "No," 

Senator Goldwater, That leads into my next question concerning 
section 3 of this same article, and I read from it : 

He shall require that a voucher be filed with him stating the details of any 
sum expended, and said voucher shall be approved by the international secre- 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3331 

tary-treasurer and retained at the headquarters to support the check issued in 
payment of said item. 

In the course of your auditing these books over this period of years, 
have you found what you consider to be adequate vouchers to back up 
expenditures ? 

Mr. Jansson. In some cases. Let's say in the majority of cases 
by number, by virtue of the fact that there are a number of vouchers 
every day for the bills for expenses and necessary operating costs, so, 
numerically, by number, yes, but in some cases there is not enough 
detail. 

Senator Goldwater, Did you consider the vouchers that existed, 
if they did exist, during the development of this $74,500 to be ade- 
quate ? 

Mr. Jansson. I can't say they were adequate. It was simply a 
memorandum for the Canadian situation and the southern situation. 
That is as much information as we could get. 

Senator Goldwater. But there was no detail ? 

Mr. Jansson. No, sir. 

Senator Goldwater. Let me ask you this : In the case of vouchers 
that were issued in years prior to this particular year for organiza- 
tional purposes, did they go into detail, such as the name of the or- 
ganizer or group of organizers to whom it was paid ? 

Mr. Jansson. I think, prior to this one period here when this 
occurred, the individuals were paid on the basis of expense accounts 
which they sent in each week, and their salaries were nominal, their 
traveling expenses nominal. Those things, those vouchers, were filed 
very regularly. 

Senator Goldwater. And were they complete, or complete enough 
for you to perform an audit ? 

Mr. Jansson. I should say yes. 

Senator Goldwater. But, in the case of this $74,500, they were 
merely listed as Canadian situation, New Jersey situation, and so forth ? 

Mr. Jansson. Yes, sir. 

Senator Goldwater. In section 3, also, it says : 

The international secretary-treasurer shall make such expenditures of funds 
as may be necessary and as may be approved by the international president for the 
conduct of the business of the international union. 

So, actually, the situation that is being developed here is permissible 
under the present constitution. 

Mr. Jansson. Yes, sir. 

Senator Goldwater. Do you feel that that is a safe situation for 
funds of a union or any other organization ? 

Mr. Jansson. No, sir. 

Senator Goldwater. Have you ever made recommendations to the 
president or the secretary-treasurer that they tighten up their con- 
stitution in relationship to money ? 

Mr. Jansson. No, sir. 

Senator Goldwater. Let me ask yo\i this : Is that not an ordinary 
function of a certified public accountant ? 

Mr. Jansson. In a case of this kind, where the constitution gives 
them the authority to do those things, I can't agree that it would be 
my function to tell them that that constitution is wrong, and that they 
should not have that authority. That is established by their conven- 
tion. 



3332 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Goldwater. Actually, under this constitution, which was 
revised in October 1956, the type of activity that we are getting into 
here is perfectly permissible under the provisions of that constitu- 
tion, and nobody can question them. 

Mr. Janssox. I would say it is perfectly possible. 

Senator Goldwater. It is actually permissible, is it not ? 

Mr. Jaistsson. Under this constitution ; yes. 

Senator Goldwater, Under this constitution, the secretary-treas- 
urer and the president can approve any expenditures that they feel 
are necessary, and if the construction of two homes for the president 
and the secretary-treasurer was felt to be necessary by both of these 
individuals, they could so approve those moneys, and they could not 
be held accountable, could they ? 

Mr. Janssoist. I don't know that that could be done. I don't know 
that I can agree. 

Senator Goldwater. That is on page 9, section ?>. "What I am try- 
ing to bring out here, and not trying to be critical of you, is that, in 
cases prior to this, for instance, the constitution of the teamsters at 
various levels actually did not prevent the officers from using union 
funds as they saw fit. 

Mr. Janssox. I think there is another section here saying that the 
executive council shall approve. Article VIII, under international 
executive council, says : 

The executive council shall exercise a general control over the affairs and 
properties of the international union and the local unions. 

Senator Goldwater. Yes, but they only are reported to once every 
ing period, which is every 3 months. The treasurer makes a report 
to the executive comicil every 3 months, and they cannot hold a special 
meeting without a third of the members of the executive council asking 
for it. What they, in effect, are doing is to sort of lock up the door 
after the horse is gone. 

Mr. Jansson. Yes. 

Senator Goldwater. It is not conceivable, either, under this consti- 
tution, the way it is written, that the executive council would be too 
anxious to criticize the president or the secretary-treasurer because, 
imder the provisions of this constitution, these men can be removed. 
They can be tried. They can receive a trial, but that is also pretty 
much under the control of those two men. 

Mr. Jansson". Section 7 of article IV says the president shall be 
chairman of the executive council. 

Senator Goldwater. That is correct. "What I am trying to develop 
here is that the power of these two men is absolute, as far as money 
goes. Let me read one other section here to tighten this down, section 
6 of article VI. It says : 

The international secretary-treasurer shall sign all checks issued for payment 
of legitimate debts of the international union which have been approved by the 
international president. 

According to section 3 of article VI, and according to a portion of 
section 2 of article IV, the legitimate debts are determined b}^ the 
president and the secretary-treasurer. 

Mr. Jansson. Correct. 

Senator Goldwater. So, actually, what we are discussing here, the 
matter of the president and the secretarj^-treasurer using union funds 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3333 

for their own purposes, is not denied in any way at all by this con- 
stitution. 

Mr. Jansson. Except to the extent of article VIII discussing the 
trustees, article VIII on page 13. 

Senator Goldwater. Could you explain how the trustees operate? 

Mr. Jaxsson. To the best of my knowledge they come in once every 
3 months and get the check stubs and the vouchers, and the canceled 
checks, and look at them. "What they report, I don't know. I haven't 
seen their reports. 

Senator Goldwater. Have you ever been retained by the trustees to 
audit the books? 

Mr. Jansson. At that time, in all this period we are talking about, 
I had no written engagement from the trustees. 

Senator Goldwater. In that article VIII, it sets up how they shall 
be elected, and how long they shall serve, but it says, too : 

Shall serve until the next quadrennial convention unless removed l)y cause 
for action by the international executive council between conventions. 

So if the trustees got a little bit too nosey, the executive council, 
which is controlled by the secretary-treasurer, could say "Boys, you 
have done a pretty good job. It is time for j^ou to leave and go fish- 
ing. AVe want to put somebody else on in your place." 

So actually, the president and the secretary-treasurer of this union 
completely operate the financial affairs, and they are in no way respon- 
sible to anybody. Most importantly, they have no responsibility, as 
described in the constitution, to the membership at large, other than 
what might trickle down in the way of a financial report, all of the 
expenditures having been approved by tliem and by their controlled 
situation on the executive council, and of the trustees, every 4 j^ears. 
during the convention. Do you think that is adequate as the only 
check on these officers ( 

Mr. Jansson. I do not, sir. 

Senator Goldwater. You, as a certified public accountant, with 
years of experience in looking at corporate constitutions and looking 
at agreements of partnerships, would say, then, that this is entirely 
inadequate for the purpose of protecting union funds? 

Mr. Jansson. Yes, sir; I would. 

Senator Curtis. Mr. Chairman? 

Will you yield, Senator? 

Senator Goldwater. I just wanted to bring that out. In reading 
this constitution it is very typical of union constitutions. I don't think 
they were necessarily drawn up that way with a purpose, but they re- 
pose too much responsibility in the men at the top who, in turn, have 
no responsibility to the men under them. This kind of looseness makes 
for the abuse of power. That is what I think we are seeing here today, 
another example of the abuse of power such as we saw during the 
Beck hearings and the hearings subsequent to that that dealt on the 
same subject. 

I am hopeful again today, as I was yesterday, and I might report 
that I have been told by the union lawyer, that changes are contem- 
plated in this constitution at their next meeting that will really put 
some teeth into the responsibility clauses so that we cannot find this 
going on. 



3334 mpROPER activities est the labor field 

Here we sit today, yesterday and probably next week, talking about 
money that these men, in our opinion, have used wrong. Yet in the 
opinion of the constitution, and I hate to say this, they have not used it 
wrong. I believe that the rank and file members of the Textile Work- 
ers Union, when they hear of the looseness with which their dues 
money can be handled, will rise up and demand changes in this, as I 
hope will be done by union members all over the country when they 
find out that their internationals are misusing the money that they 
paid. 

Mind you, $1.40 out of each member comes into this organization 
every month. This is not a little bit of money that we are talking about. 

By the way, what is the worth now of the International ? 

Mr. Jansso^t. The net worth? 

Senator Goldwater. Yes. 

(The witness conferred with his associate.) 

Mr. Janssox. I can't say otihand, but it is roughly three or four 
hundred thousand dollars. 

Senator Goldwater. What is their income annually from dues 
sources. 

(The witness conferred with his associate.) 

Senator Goldwater. Did we develop how many members there are ? 

Mr. Jansson. Roughly 50,000. 

Senator Goldwater. Then they have about $56,000 a month income. 
I will take that back. It is about $74,000 a month in income. 

Mr. Jansson. Their net worth at the present time is approximately 
$327,000. Their income, as you say, is approxiniately 

Senator Goldwater. It is pretty close to a million dollars a year, at 
$1.40. 

Mr. Jansson. Yes, roughly that. 

Senator Goldwater. It is pretty close to a million dollars a year. 
So we are not talking about a small outfit. We are talking about big 
business. 

That is all I have, Mr. Chairman. 

The Chairman. Senator Curtis ? 

Senator Curtis. Mr. Chairman, I concur in the observation of the 
distinguished Senator from Arizona, that this constitution is lacking 
in many particulars, failing to give the protection to the union members 
that it ought to. On the other hand, I want to call attention to this : 

The expenditures the secretary-treasurer can make, with the ap- 
proval of the president of the union, must be necessary for the conduct 
of the business of the international union. 

It does provide that, does it not ? 

Mr. Jansson. Yes. 

Senator Curtiss. What I mean is this constitution does not give 
them authority to spend for something if it is clearly outside the neces- 
sary conduct of the union's business; is that right? 

Senator Goldw'ater. Would the Senator yield ? 

Senator Curtis. Yes. 

Senator Goldwater. If you will look under the duties of the presi- 
dent and the secretary-treasurer, they can determine what is the busi- 
ness of the union. While it does not spell out houses as one of them, 
they can determine that having a house is a necessary function, and 
they can use money for it. 



IMPROPER ACTIVITIES IX THE LABOR FIELD 3335 

Senator Curtis. I would not quite agree. I think that on a close 
question, they have a great deal of authority, but I do not believe they 
could use their discretion to their own personal advantage to that ex- 
tent. I think that any court would hold that the purchase of homes 
for leaders would have to have some specific authorization. 

At the same time, I agree with you that the document itself is very 
lacking. 

There is notliing in that power vested in the secretary -treasurer or 
the president that would justify the issuing of a voucher for a purpose 
other than for what the money was actually spent, is there ? 

Mr. Jansson. No, sir. Your statement is correct, sir. 

Senator Curtis. That is all, Mr. Chairman. 

Senator Mundt. I would like to call your attention, Mr. Jansson, 
to the language at the top of page 14, under the duties and responsibili- 
ties and authorities of trustees, in article VIII. It says : 

The international secretary-treasurer shall fix the date and time when the 
trustees and the certified public accountant retained by them shall conduct the 
audit and examination of the financial records of the international union. 

My question to you is whether, as the certified public accountant 
who examines these books, you were retained hj the trustees in con- 
formity with tlie constitution, or were you retained by the officers of 
the union ? 

Mr. Jansson. When I was called in in 1946, the only formality was 
that I was to succeed the man who had to retire because of illness, and 
follow him and address the reports to the executive board, as have ever 
since. 

Senator Mundt. You have no contract with the union, as such ? 

Mr. Jx\NssoN. Not as such. 

Senator Mundt. Did your predecessor have a contract ? 

Mr. Jansson. Not to my knowledge. I believe a contract, in the 
way that we think of it, is not too common in this type of auditing. 
It is agreed that you do the job until you either retire from it or they 
dismiss you. 

Senator Mundt. Would it be accurate to state that your relation- 
ships with the union and your transmission of your certified reports 
have been made with the officers of the union rather than with the 
trustees ? 

Or have you reported directly to the trustees ? 

Mr. Jansson. No, sir. Our audit reports have been made inde- 
pendently of the trustees' presence in the city and have been addressed 
to the executive board. I believe there have been a number of oc- 
casions when they called us and asked when they could have the re- 
port so they wouldn't have the trustees come in until our report was 
completed. 

Senator Mundt. It seems to me that there has been some violation 
of the constitution on the part of either the trustees or the officers, be- 
cause the constitution provides that the accountants should be em- 
ployed by them and presumably report to them, if they are goin^ to 
serve as an auditing committee, whereas the men who are being audited 
get the report. 

That is not the way in which most organizations operate for an 
audit. Of coiu'se, in your concern you work for the people who tell 
you to get out the report and you give it to the people in question. 



3336 IMPROPER ACTIVITIES IN THE LABOR FIELD 

I am talking about this constitutional matter Senator Goldwater 
was goinor into. In that connection, it would appear, at least, that the 
trustees have been somewhat lax in delegating their responsibility to 
the people who are being audited rather than accepting it as a com- 
mittee to examine the auditor's report. 

The Chairman. May we get back to this auditing report, the one 
that has been made exhibit 38. I believe that is the one you have been 
testifying to; is that correct? 

Mr. Jansson. Yes, sir. 

The Chairman-. Which one has the penciled corrections on it? 
What exhibit is that? 

Mr. Jansson. No. 38. 

(At this point Senator Mmidt withdrew from the hearing room.) 

The Chairman. That is as you originally reported, that is your 
original report, except that you have made penciled changes on it after 
it was determined that you would make a supplemental report, or an 
amended report? You made changes on that, in pencil, did you, to 
indicate how the final report or the supplemental report would be writ- 
ten up ? 

Mr. Jansson. Yes, sir. Those penciled changes, as they show in this 
copy which you have given me a photostatic copy of, those are for the 
benefit of the typist to retype these in complete type form. 

The Chairman. And it was retyped? 

Mr. Jansson. It was ret3^ped ; yes, sir. 

The Chairman. Now I hand you what purports to be a photostatic 
copy of the final report that you made, the one that was retyped, 
based on the changes made in pencil in the original report. I ask 
you to examine it and identify it. 

(Document handed to witness.) 

Mr. Jansson. Yes, sir. This is the report typed with those correc- 
tions indicated in that report ; yes, sir. 

The Chairman. That may be made exhibit No. 40. 

(The document referred to was marked "Exhibit No. 40," for refer- 
ence and may be found in the files of the select committee.) 

Mr. Kennedy. You wrote a letter that we discussed there? 

Mr. Jansson. I beg your pardon ? 

Mr, Kennedy. You wrote a letter at the same time discussing these 
items ? Is that a letter ? 

Mr. Jansson. That is the comments which became detached from 
this. 

Mr. Cunningham. That is part of this report here. 

Mr. Kennedy. In the comments dated August 28, 1956, you state in 
the paragraph regarding the $74,500 and I quote : 

Checks issued during this period were examined for signatures and endorse- 
ments. In the course of the examination, the inadequacy of recorded informa- 
tion concerning certain expenditures made by checlis payable to cash was called 
to the attention of your president and secretary-treasurer. Correspondence be- 
tween this organization and tlie Mutual Title Co. in August indicates that 
$57,.500 of such checks was used as a deposit on certain property for the United 
Textile Workers of America. This amount was returned to the organization on 
August 27, 19.52, and deposited in the National Bank of Washington on that day. 
The letter of transmittal by the Mutual Title Co. under date of August 26, 1952, 
states as follows — 

We will have that later on. 

I wonder, as an accountant, why you did not point out in this letter, 
in these comments, what actually had happened and about the fact 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3337 

that yon had received these affidavits, and that the affidavits had been 
returned. 

Mr. Jansson. "Well, at that time it seemed reasonable during that 
conversation. But that seeming reasonable didn't last overnight, and 
within a week I had supplemented that statement. 

ISIr. Kennedy. Wasn't that supplemented only after you met with 
Mr. Meany? 

]Mr. Jansson. It was going back to my original report of June 30 
which has those things in it, and I decided it should remain in it, and 
issued the supplement. At the same time is when my friend called me 
and said they wanted more details, and that fit right into the schedule 
with what I already determined had to be, that we had to go back to 
that original June 30 report. 

(At this point, Senator Goldwater withdrew from the hearing 
room. ) 

Mr. Kennedy. Weren't your responsibilities as an accountant such 
that you should have put this other information in, Mr. Jansson ? 

(The witness conferred with his associate.) 

Mr. Jansson. At the time that letter from the title companj^ 

Mr. Kennedy. I am not talking about that. You had certain inde- 
pendent information. I agree with you that the letter from the title 
company is most misleading, in view of the true facts. But you had 
certain independent information yourself. Don't you think you 
should have incorporated that information into this report ? 

Mr. Jansson. That information that I had at that time is what I 
did incorporate in the September 8 supplement to become part of this 
report. 

]\Ir. Kennedy. I am not talking about the supplement. I am talk- 
ing about August 28. We will go on to what happened in September. 
But as of August 28, when you filed this report, No. 1, you changed 
your report; No. 2, they had given you affidavits as to certain facts 
and requested 'the withdrawal of those affidavits and stated that those 
facts were incorrect. You had that information and yet you did not 
mention that in your report. Don't you think you should have, Mr. 
Jansson ? 

Mi\ Jansson. I do, sir. 

Mr. Kennedy. You ultimatelv did, after you met with Mr. Meany, 
is that right? 

Mr. Jansson. No, sir. I was out of the city. I was up in Maine, 
in the woods. 

Mr. Kennedy. You had information that Mr. Meany was interested 
in this matter ? 

Mr. Jansson. When I returned to the city I had such information, 
but I didn't sleep nights until I got that made up. 

Mr. Kennedy. You made a supplement, is that right ? 

Mr. Jansson. Yes, sir. 

Mr. Kennedy. That supplement was on September 8 ? 

Mr. Jansson. That supplement was September 8. 

The Chairman. The Chair hands you exhibit 24, which has already 
been made a part of this hearing, and two other photostatic copies 
of documents, one page documents. I will ask you if exhibit 24, 
together with the other two photostatic copies of letters which I hand 
you, constitute your supplemental report. 



3338 IMPROPER ACTIVITIES IN THE LABOR FIELD 

(Documents handed to witness.) 

The Chairman. Examine them and if you identify those two docu- 
ments, we will make them exhibits. 

(The witness conferred with his associate.) 

Mr. Jansson. Yes, sir. 

The Chairman. Those two additional photostatic copies which you 
identify, and say which together with exhibit 24 constitute the sup- 
plement report, 'hose two additional documents will be made exhibit 
24r-A and B so tliat the}^ will appear at the proper place in the record. 

(The documents referred to were marked "Exhibits 24-A and B" for 
reference and will be found in the appendix on pp. 3542-3543.) 

Mr. Kennedy. You received information at that time, Mr. jansson, 
that Mr. Meany was interested in this matter and felt that the report 
that had been filed was not adequate ? 

Mr. Jansson. I had information that they were trying to make a 
loan from the American Federation of Labor or from banks, who- 
ever would lend them the money, yes. 

The Chairman. That who was trying to make a loan ? 

Mr. Jansson. The T'nited Textile Workers of America was tiying 
to make a loan to help this unusual organizing campaign which was 
underway at that tim.e. 

The Chairman. The}^ were trying to secure a loan, not make one. 

Mr. Jansson. I am sorr3\ Trying to secure a loan. 

Mr. Kennedy. Could I read this letter of September 8? It is 
addressed, Mr. Chairman, to the International Executive Board, 
United Textile Workers of America. 

The Chairman. It may be read. 

Mr. Kennedy (reading) : 

Gentlemen, in connection with my report of June 30, certain pertinent com- 
ments must be added and are herewith stated to become part of that report. 
During the actual course of the audit I was given the unequivocal assurance 
of the president and secretary-treasurer that certain checks drawn payable 
to cash were used for proper organizing purposes. A schedule of these checks 
is attached herewith. On August 27, a letter from the Mutual Title Co., with 
the title company's check for .$.57,000, was exhibited to me. This was the first 
time any mention had been made to me by the president and secretary-treasurer 
that these disbursements were made for a building. Since the letter from the 
title company describes the refund as a deposit, the same description is used 
in the disbursements schedule in my report. Since a copy of my report has 
been given to the American Federation of Labor and possibly to others in con- 
nection with the current efforts of your president and secretary-treasurer to 
obtain outside financial aid. it is my considered opinion it is essential that 
the foregoing comments in connection with the accompanying schedule be 
attached to and made a part of my report dated August 28, 19.52, covering the 
period from April 1, 1952 to June 30, 1952. 

Mr. Cunningham. Did you have a question, Mr. Kennedy? 

Mr. Kennedy. No. 

The Chairman. Thank you very much, gentlemen. 

Mr. Kennedy. May I just ask you this: You remained as their 
auditor after this ? 

Mr. Janssen. No, sir, I didn't. I did not. I withdrew at that time 
because of this situation which was questionable, to say the least. 

Mr. Kennedy. Thank you. 

The Chairman. Wlio is the next witness ? 

Mr. Kennedy. Mr. Quigley, Mr. Chairman. 

The Chairman. Come forward, Mr. Quigley. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3339 

(Committee members present at this point: Senators McClellan 
and Curtis.) 

TESTIMONY OF MARTIN J. QUIGLEY— Resumed 

The Chairma2^. You have previously testified, Mr. Quigley. You 
are being recalled. You remain under the same oath. 

Mr. Kennedy. You testified, Mr. Quigley, that $57,000 had been 
given to you by Klenert and Valente for a payment on their building, 
is that correct, on May 15, a payment on their two homes? 

Mr. Quigley. Yes. 

Mr. Kennedy. I show you a letter dated August 25, 1952. 

The Chairman. This letter is addressed to you and signed by Mr. 
Lloyd Klenert. It purports to be a photostatic copy of the original. 
Will you examine it and state if you identify it ? 

( Document handed to witness.) 

Mr. Quigley. Yes, I recognize the letter. 

The Chairman. That may be made exhibit No. 41. 

(The document referred to was marked "Exhibit Xo. 41" and follows 
below :) 

Mr. Kennedy. May I read this into the record ? 

The Chairman. You may. 

Mr. Kennedy. It is dated August 25, 1952, and addressed to Martin 
Quigley, Mutual Title Co., 917 15th Street, NW., Washington, D. C. 

Dear Me. Quigley : You now have in your possession $57,000 belonging to the 
United Textile Workers of America, which you are holding as a deposit on cer- 
tain property which is identified as parcel No. 2 for the United Textile Workers 
of America. Inasmuch as we have certain organizational problems which re- 
quire cash to meet certain expenses that we did not anticipate three months 
ago, I am requesting that you return this $57,000 and forego the possibilities 
of the purchase of a building for the United Textile Workers of America until 
such some in the future as we may be in a position to expend money for this 
purpose. 

Very truly yours, 

Lloyd Klenert, 
International Secretary-Treasurer. 

What was your reaction when you got that letter, Mr. Quigley ? 

Mr. Quigley. That letter was simultaneous with the deposit of 
$57,000 which I returned pursuant to the letter. But between May 
and August, I did not have the $57,000 on deposit as is indicated in 
that letter of May 15. 

Mr. Kennedy. Did you write him back to that effect, so that the 
records of the Textile Union would know that? 

Mr. Quigley. No, I did not. 

The Chairman. The Chair presents to you what purports to be a 
photostatic copy of your reply to Mr. Klenert's letter of August 25, 
which you have identified, and which has been made exhibit 41. Will 
you examine this photostatic copy and state if you identify it is such ? 

(Document handed witness.) 

Mr. Quigley. Yes, I wrote that letter. 

The Chairman. That will be made exhibit 42. 

The Chairman. Do you want to read that into the record ? 

Mr. Kennedy. If you please, Mr. Chairman. 

The Chairman. It may be read into the record. 

(The document referred to was marked "Exhibit No. 42" and follows 
below.) 



3340 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. This is dated August 26, 1952, addressed to Mr. 
Lloyd Klenert, secretary-treasurer, United Textile Workers of Amer- 
ica, 818 13tli Street NW., Washington, D. C. 

Dear Mb. Klenert : Receipt is acknowledged of your letter of August 25th. 
As requested therein, I am enclosing herewith our check for $57,000 which repre- 
sents the deposit that the United Textile Workers of America had with the 
Mutual Title Co., and which we were holding for the purchase of certain property 
which is identified as parcel No. 2 by the United Textile Workers of America. 

I am very sorry that you were not able to consummate the purchase of a build- 
ing for your organization at this time, but I can readily appreciate your desire 
to hold this in abeyance because of the certain organizational expenditures you 
now have which were not anticipated when this deposit was made. I trust that 
if in the future when you are again in the position to invest money of the 
United Textile Workers of America in a building site, we may be in a position 
to assist you. 

Very truly yours, 

Martin J. Quigley, 

Mutual Title Co. 

That letter is completely false, is it not, Mr. Quigley 'i 

Mr. Quigley. Not completely, no. 

Mr. Kennedy. It is addressed to Mr. Klenert. 

Mr. Quigley. I returned the $57,000 with that. But the $57,000 
was deposited simultaneously when that letter was written. 

Senator Curtis. Who dictated that letter? 

Mr. Quigley. I am afraid I did. 

Senator Curtis. Who else was present ? 

Mr. Quigley. Well, I wouldn't know. Senator, after 5 years. It is 
possible Mr. Klenert was there. The wording about the organiza- 
tional difficulties would indicate he was there. I knew nothing about 
their difficulties. 

Senator Curtis. Was the letter personally handed to him or was it 
mailed ? 

Mr. Quigley. I couldn't say. 

Senator Curtis. You wouldn't say that he didn't make some sug- 
gestions on what should go into that reply!' 

Mr. Quigley. I would say he did make the suggestions because of 
the wording of organizational difficulties. I knew nothing of his or- 
ganizational difficulties, so he had to have been present. 

Senator Curtis. Though you can't remember all the details back 
that far, you are of the opinion that he made suggestions as to what 
he would like to have in that letter? 

Mr. Quigley. Yes, sir. 

The Chairman. The Chair presents to you what appears to be a 
photostatic copy of a $57,000 check to which the letter refers, and asks 
you to examine it and identify it, please, sir. 

(Document handed witness.) 

Mr. Quigley. Yes, that is my company check. 

The Chairman. That may be made exhibit No. 43. 

(The document referred to was marked "Exhibit No. 43" for refer- 
ence and will be found in the appendix on p. 3560. ) 

Mr. Kennedy. I want to ask you about this letter. This is the letter 
from you : 

I am enclosing herewith our check for .$57,000 which represents the deposit 
the United Textile Workers of America had with the Mutual Title Co. 

Is that true ? 

Mr. Quigley. I had $57,000 on hand when I wrote the letter. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3341 

Mr. Kennedy. I am not talking about that now, Mr. Quigley. 

Mr. Quigley. I just admitted that I did not have it between May 
and August. 

Mr. Kennedy. Then that statement is not true ? 

Mr. Quigley. It is true in substance, 

Mr. Kennedy. You have spent it? 

Mr. Quigley. I had returned the $57,000. They arranged for a new 
$57,000 which I returned to them with that letter. It was done simul- 
taneously, 

Mr, Kennedy. How long had you had the check on deposit for 
$57,000 ? How long had you had it on deposit ? 

Mr, Quigley. Overnight, possibly. 

Mr. Kennedy. You knew that is not what they were referring to in 
that letter, Mr. Quigley. 

Mr. Quigley. Yes, I knew it. 

Mr. Kennedy. Why did you mislead them by writing such a letter ? 

Mr. Quigley. Mislead who? 

Mr. Kennedy. Mislead the trustees. Mislead the auditor of the 
United Textile Workers of America. 

Mr. Quigley. I was dealing with Mr. Klenert and Mr. Valente. My 
opinion was that they were the union, that they represented rhe union, 
and nobody was being fooled because they were the union, in my 
opinion. 

Mr. Kennedy. You didn't think that you had any responsibilities 
in this area, if it was clear to you, as it must have been, that they were 
using union funds for their own personal benelits? 

Mr. Quigley. I didn't know there was anything that prevented it. 

Mr. Kennedy. And you felt free to use those funds, and take part 
in that scheme ? 

Mr. Quigley. I thought that was the custom in the union. 

Mr. Kennedy. Just as long as you made some money out of it, that 
was what was important ? 

Mr. Quigley. I had made the money out of it that I was going to 
make and not in August of 1952. I got one fee in May and no other 
fees. 

Mr. Kennedy (reading) : 

I am sorry that jou were not able to consummate the purchase of a building 
for your organization at this time. 

That was a misleading statement, was it not ? 

Mr. Quigley. No, it wasn't, because on one occasion I went out and 
looked at a building to try to interest them in it. 

Mr. Kennedy. But that was not what they were talking about at 
this time, was it ? 

Mr. Quigley. They say — you have the letter. I don't know. They 
say they have given up the idea of buying a building. I had looked 
at one property for them with a view of interesting them in it. 

Mr. Kennedy. Did you assist them at all in getting the $57,000 that 
should be paid back ? 

Mr. Quigley. Yes. 

Mr. Kennedy. What steps did you take to assist them? 

Mr. Quigley. I had a call from IVIr. Parker Nolan asking me if 
I knew of any source where they could raise a collateral loan. I 
asked him what the collateral was, and he mentioned 3 second trust 

89330— 5.7— pt. 9 9 



3342 IMPROPER ACTIVITIES IN THE LABOR FIELD 

notes, 2 on the Kensino:ton properties, 1 on a piece of property that 
Mr. Klenert owned in Takoma Park, and some automobile titles. I 
am not a real-estate broker. I called a man who is in that business 
at the American Co, 

Mr. Kennedy. At where ? 

Mr. QuiGLEY. The American Co. I asked him could he arrange a 
collateral loan. He said he would see what he could do. 

Mr. Kennedy. Who did you call ? 

Mr. QuiGLEY. Mr. Fisher. 

Mr. Kennedy. What was Mr. Fisher's business ? 

Mr. QuiGLEY. Mr. Fisher is the American Co. It is a mortgage dis- 
count company. 

I felt that this borrowing on second trusts and automobile titles 
was not a bankable proposition, so I called him. He arranged it. So I 
was instrumental in getting 

Mr. Kennedy. What did he arrange ? 

Mr. QuiGLEY. He arranged a collateral loan on the items that I 
have just mentioned. 

Mr. Kennedy. How much did he arrange that Mr. Klenert and Mr. 
Valente would borrow ? 

Mr. QuiGLEY. Only from recollection, it is something around $32,000 
or $33,000. 

Mr. Kennedy. What did you get out of that ? 

Mr. QuiGLEY. I got nothing out of it. 

Mr. Kennedy. You did not receive any money at all ? 

Mr. QuiGLEY. I got a check from Mr. Fisher because the American 
Co. was and is indebted to me, and still is. I have an account from 
them in the hands of a lawyer to file suit for the balance of the money 
due me. 

Mr. Kennedy. What did you receive ? 

Mr. QuiGLEY. I received a third of $2,000, $666. 

Mr. Kennedy. Then why do you say you did not receive anything 
out of it ? You received $666. 

Mr. QuiGLEY. Your question I interpreted to mean in remuneration, 
and I got none. That was a return of an investment I had put into that 
American Co. 3 years before. 

Mr. Kennedy. How much had you put in that company ? 

Mr. QuiGLEY. I put in about $1,500 cash and a note that was about 
due that I owned for $6,000. 

Mr. Kennedy. Why do you say you got a third of $2,000 ? What is 
the $2,000? 

Mr. QuiGLEY. That was evidently the commission on the sale of this 
note. Mr. Fisher got $1,333, and he gave me back, as a return of my 
investment in that company, one-half of that, owing me money, I 
could have grabbed the whole thing when I had it in my hands to dis- 
burse. 

Mr. Kennedy. What do you mean by that, again ? 

Mr. QuiGLEY. I mean that the American Co.- 

Mr. Kennedy. Did you get a third of all the profits of the American 
Co.? 

Mr. QuiGLEY. The American Co. was a loss to me. They still owe 
me money. 

Mr. Kennedy. Were you getting all of the profits of any of their 
transactions? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3343 

Mr. QuiGLEY. There never were any profits. 

Mr. Kennedy. Why did you get it on this case ? 

Mr. QuiGLEY. Because that is money that I put into the company 
that they used to pay salaries and rent. 

Mr. Kennedy. Why was it only on this transaction that you got the 
money back ? 

Mr. QuiGLEY. I got it on other transactions. 

Mr. Kennedy. You did get it on other transactions ? 

Mr. QuiGLEY. Whenever they made any kind of a payment, I think 
I got $500 once and $100 another time. 

Mr. Kennedy. But you got $666.67 for what you did on this tran- 
saction ? 

Mr. QuiGLEY. Not for what I did on this transaction. I got nothing 
out of this transaction. 

Mr. Kennedy. Let me show you the check. 

Mr. QuiGLEY. Mr. Fisher paid me a debt he owed me. 

The Chairman. The Chair hands you a check, a photostatic copy of 
one, dated August 27, 1952, made to you, signed by John Fisher. I 
a-sk you to examine the check. 

It is in the amount of $666.67. I ask you to examine it and state if 
you identify it. 

(A document was handed to the witness.) 

Mr. QuiGLEY. Yes, sir. 

The Chairman. It will be made exhibit No. 44. 

(The document referred to was marked "Exhibit No. 44'' for refer- 
ence and will be found in the appendix on p. 3561.) 

Mr. Kennedy. What does it state on the check ? 

Mr. QuiGLEY. It says, "Martin J. Quigley, attorney, Nolan-Textile 
Union." 

Mr. Kennedy. What does that mean ? 

Mr. QuiGLEY. I don't know. Mr. Fisher will have to answer that. 
That is evidently his record. 

Mr. Kennedy. Is it not fairly clear that it was in connection with 
the textile union, your arranging this loan, your arranging this note 
for them ? 

Mr. QuiGLEY. No, that was not the intention, and that is not what 
the money was for. 

The Chairman. Why would he put that on there ? 

Mr. QuiGLEY. I don't know. 

The Chairman. Why would you cash it if it was on there and you 
did not know about it ? 

Mr. QuiGLEY. I have known Mr. Fisher for 15 years and have dealt 
with him during that time. I paid no attention to that notation. It 
meant nothing to me. 

The Chairman. It is quite common practice to write on a check what 
it is for. 

Mr. QuiGLEY. He is identifying it, I guess, for where the funds 
were coming from, I guess. 

The Chairman. It was coming out of his bank account. 

Mr. QuiGLEY. But he owed it to me and still owes it to me. 

The Chairman. I am not questioning that, but you must agree, I 
am sure, that ordinarily a notation on a check like that is intended to 
indicate the purpose for the payment, is that not correct ? 



3344 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. QuiGLEY. I can only say that he put it on there to identify 
the case in his ofRce. 

The Chairman. Proceed. 

Mr. Kennedy. Mr. Quigley, if there is any misappropriation of mis- 
use of union funds during this period of time by these officials, you 
were certainly a part of it. You wrote this letter of May 15, which 
was entirely misleadinoj, and then you wrote this letter of Au,o;ust 26, 
1952, which was misleadinjr, which shows that you were involved in it, 
and knew what was o:oing: on. 

As a lawyer here in the District of Columbia, and as a person who 
had certain responsibilites as an official in the Mutual Title Co., I 
would think that you would have considered your position at that 
time. 

Mr. Quigley. None of these thin^rs have any connection with me as 
an attorney. I have never used that office — these transactions were 
in a title company, in a corporation, of which I am president. 

Mr. Kennedy. If a jeweler is handling; funds or goodsrthat he knows 
have been stolen, he is going to be held responsible. If a person in a 
mutual title company is handling funds that he knows have been mis- 
appropriated or misused, certainly he should be held responsible, par- 
ticidarly as an officer of the court, as a lawyer, as you are. 

Mr. Quigley. Being an officer of tlie court has nothing to do with 
this. I am not acting as an officer of the court. I am not acting as an 
attorney, and I am not collecting attorney's fees. 

Mr. Kennedy. You wrote two letters that were completely mislead- 
ing. The one of August 26, Mr. Jansson says was the basis of their 
report, which was entirely misleading, the report was misleading 
and he says it was based on your letter. 

He says the Mutual Title Co. had some reputability, and he wrote 
his report based on that letter. Will ybu explain this for the com- 
mittee at all, explain your actions? 

Mr. Quigley. No. I don't think there is any explanation. I will 
admit I wrote the letter of May 14. I will admit it was indiscreet. 

Mr. Kennedy. What about the one on August 26 ? 

Mr. Quigley. On August 26, 1 was merely returning the money that 
was deposited with me possibly the day before. 

Mr. Kennedy. And you were making misleading statements in the 
letter. 

Mr. Quigley. The window dressing, no doubt, was suggested, and 
I put it in. 

The Chairman. Is there anything further ? 

Mr. Kennedy. No. 

The Chairman. Senator Curtis, have you anything further? 

Mr. Kennedy. Did you handle the money that ultimately was raised 
by Mr. Klenert and Mr. Valente? Did you handle that money for 
them? 

Mr. Quigley. What do you mean ultimately raised ? 

Mr. Kennedy. During this period of August 1952 you helped Mr. 
Klenert and Mr. Valente to raise $33,000 yourself. Did you handle 
any of the rest of the money for them ? 

Mr. Quigley. The entire amount was deposited with the Mutual 
Title and I drew that check back to the union for the $57,000 with 
that letter of August 26. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3345 

Mr. K!ennedy. How much money was raised ? 

Mr. QuiGLET. $57,000. 

Mr. Kennedy. How much money did they raise altogether that you 
deposited ? 

Mr. QmcLEY. I am going to fathom a guess ; $59,900. 

The Chairman. The Chair hands you what purports to be a deposit 
slip, a photostatic copy of one, dated August 26, 1952. Examine it, 
please, sir. 

(A document was handed to the witness.) 

The Chairman. State if you identify it, Mr. Quigley. 

Mr. QuiGLEY. Yes, I said $59,900 and the deposit in this case is 
$60,100. So from memory that isn't bad. 

The Chairman. That will be made exhibit No. 45. 

(The document referred to was marked "Exhibit No. 45" for ref- 
ence and will be found in the appendix on p. 3562.) 

Mr. Kennedy. Our records show that $57,000 of that went to the 
United Textile Workers. Is that correct ? 

Mr. Quigley. Yes. 

Mr. Kennedy. $200 went to Sol Kosenblatt. 

Mr. Quigley. Yes. 

Mr. Kennedy. Who is Sol Eosenblatt? 

Mr. Quigley. He is the party who put up the check shown on that 
deposit slip. He was the ultimate purchaser of the collateral loan. 

Mr. Kennedy. Do you mean the $33,000 ? 

Mr. Quigley. Yes, if that is the amount of the note. I don't know. 

Mr. Kennedy. Then there is $660.67 payable to Louis Yudelevit ? 

Mr. Quigley. Yes. 

Mr. Kennedy. Who was he ? 

Mr. Quigley. He has offices with Mr. Fisher. When I called Mr. 
Fisher about arranging the loan, he took it up with Mr. Yudelevit 
and jNIr. Yudelevit, I believe, contacted Mr. Rosenblatt. 

Mr. Kennedy. And then $1,333.33 payable to John W. Fisher. Who 
is John W. Fisher ? 

Mr. Quigley. He is the American Co., and a realtor and dealer in 
notes. 

Mr. Kennedy. And then a check for $900 payable to M. Parker 
Nolan. 

Mr. Quigley. That was a commission paid to him. The total com- 
mission was $2,900, 1 would think. 

Mr. Kennedy. For what reason was the commission paid to him? 

Mr. Quigley, Well, when you have an unbankable proposition, you 
go out to people that deal in notes, and it is customary to sell them at 
discounts and that was the discount. 

Mr. Kennedy. That is what he got for his commission, Nolan, $900 ? 

Mr. Quigley. Yes. 

The Chairman. The witness will stand aside. 

The committee will stand in recess until 2 o'clock Monday afternoon. 

(Members of the select committee present at the taking of the recess 
were: Senators McClellan and Curtis.) 

(Whereupon, at 4 : 15 p. m., the hearing in the above-entitled matter 
was recessed, to reconvene at 2 p. m. Monday, July 22, 1957.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



MONDAY, JULY 22, 1957 

United States Senate, 
Select Committee on Improper Activities 

IN THE Labor or Management Field, 

Washington^ D. C. 

The select committee met at 2 p. m., pursuant to Senate Resolution 
74, agreed to January 30, 1957, in the caucus room. Senate OiRce 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 Pat McNamara, Democrat, Michi- 
gan; Senator Barry Goldwater, Republican, Arizona, Senator Karl 
E. Mundt, Republican, South Dakota; Senator Carl T. Curtis, Repub- 
lican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel to the select com- 
mittee ; Ralph Mills, assistant counsel ; Morton E. Henig, investigator ; 
Alphonse F. Calabrese, investigator ; Ruth Young Watt, chief clerk. 

(Members of the select committee present at the convening of the 
session : Senators McClellan, Ives, and Goldwater.) 

The Chairman. The committee will come to order. 

We will resume public hearings today in the inquiry the committee 
is making into the United Textile Workers. 

Who is your first witness ? 

Mr. Kennedy. Mr. George Meany. 

The Chairman. Mr. Meany, will you come forward, please? 

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

Mr. Meant. I do. 

TESTIMONY OF GEORGE MEANY 

The Chairman. Mr, Meany, will you state your name, your place 
of residence, and your business or occupation, please, sir ? 

Mr. Meant. My name is George Meany; residence 8819 Burdett 
Road, Bethesda, Md. My position is president of the American Fed- 
eration of Labor and Congress of Industrial Organizations. 

The Chairman. Before I proceed further, I am sure you are familiar 
with the rules of the committee, that you are entitled to have counsel 
present if you desire, while you testify. 

Mr. Meant. Yes. 

3347 



3348 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. Do you waive that right ? 

Mf.Meany. Yes. 

The Chairman. Do you have someone else with you whom you might 
want to confer with ? 

I thought maybe you have some of your staff with you. 

Mr. Meant. I have my staff here. 

The Chairman. It is perfectly all right. If you want to identify 
them for the record, it is all right. 

How long have you been president of the AFL-CIO ? 

Mr. Meany. Since December 5, 1955. 

The Chairman. And prior to that time, what official position did 
you hold in the labor movement ? 

Mr. Meany. I was president of the AFL from November 25, 1952, 
up until its merger with the CIO in December of 1955, and prior to 
that time I was secretary-treasurer of the AFL from January 1, 1940, 
up until I became president. 

The Chairman. Thank you very much. 

Mr. Counsel, you may proceed. • 

Mr. Kennedy. Mr. Meany, our records show that on May 12 or 
May 15, Mr. Klenert and Mr. Valente, both of the United "Textile 
Workers of America, came to see you about raising some money for 
an organizational drive that they were undertaking. Do you remem- 
ber that ? 

Mr. Meany. Well, I remember them coming to see me. I wouldn't 
be sure of the exact date. 

(At this point, Senators Kennedy and Mundt entered the hearing 
room.) 

Mr. Kennedy. Our records show it was either May 12 or May 15. 
I wonder if you can tell us what occurred at that meeting and what 
occurred after that. That was 1952. 

Mr. Meany. In the early part of May I would say, in 1952, Klenert 
and Valente told me that they wanted to come in and see me. I don't 
know just — I can't recall just what the circumstances of the meeting 
were, but they wanted to come in and see me about getting a loan or 
a donation from the AFL to assist them in their organizing work. 

In Boston in that year, in May, in the latter part of May, they an- 
nounced an alliance with the foi-mer vice president of the CIO Textile 
Workers who had left that organization and had announced that he 
was going to form an alliance with the AFL Textile Workers and 
try to bring his followers into the AFL Textile Union. That occurred 
in Boston in the latter part of May 1952. 

Sometime after that, on my return to Washington, Mr. Klenert and 
Mr. Valente came in to see me about getting a loan. I think this was 
sometime in June. I am not positive of the elate. It was about getting 
a loan from the AFL to assist them in this organizing drive. 

I, at that time, said, "Well, what is your own financial position? 
Are you going to spend your own money or are you just goi?ig to spend 
our money, if we give you any? Are you going to spend your own 
first before you ask us for money ?" 

And they said, well, that they were going to spend considerable of 
their own money. 

I suggested then that they give me a financial statement showing 
their own standing financially, before I would recommend to the execu- 
tive council a loan of any money to them. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3349 

■\ 
They had made it clear that they did not want the matter brought 

before the excutive council unless I was convinced that the AFL should 

loan them this money. 

So, along in August of that year, we had an executive council meet- 
ing in Atlantic City, and they came to Atlantic City and brought with 
them a financial statement of the expenses of their organization for 
the previous 4 months, I think March, April, May and June were the 
months covered, and presented me with that statement. 

I asked them some questions about it, and told them that I would like 
to study it and that I would contact them the following morning and 
let them know what I thought about it. 

I did contact them the following morning and told them that T 
thought it was a phony report. 

The Chairman. Mr. Meany, do you think you might identify photo- 
static copies of that report ? 

Mr. Meany. I think I could. 

The Chairman. The Chair presents to you a series of photostatic 
copies, I believe of monthly reports, which the Chair understands was 
presented to you by these gentlemen at that time. I ask you to examine 
them and state, if you can, whether you identify them. 

(Documents handed to witness.) 

Mr. Meant. I think this is the same report. As far as I can see at 
a quick glance, it is the same report, yes. 

The Chairman. Thank you very much. 

That report will be made exhibit No. 46, and beginning with the 
first month representing it, if there are separate reports, I believe, 
for 

Mr. Meany. For 5 months. 

The Chairman. Numbering the first one 46 and then 46-A, B, C, D, 
and so forth. They will be made exhibits, for reference only, and will 
not be printed in the record. 

(The documents referred to were marked "Exhibit 46-A, B, C, D, 
and E," for reference and may be fomid in the file of the Select Com- 
mittee.) 

The Chairman. Proceed. 

Mr. Meant. So, the following morning, after I examined this re- 
port at some length in my room the evening before, I contacted Mr. 
Valente and Mr. Klenert and I told them that I considered the report 
a phony report, that it was not an honest report, that there were certain 
items in there that looked out of place, didn't look proper, and certainly 
didn't justify the claim that they had spent a large amount of money 
in this campaign. 

The Chairman. In other words, you became suspicious of it? 

Mr. Meant. I became suspicious, that there was something wrong. 
However, I told them that if they still wanted to go before the council, 
that I would arrange for them to come in and see the council that 
morning. 

They said no, that they did not, and Mr. Klenert told me that the 
question of a loan was no longer important, that the important thing 
was his integrity, that I had challenged his integrity, and that now the 
only important thing from his point of view was that he was going to 
document and justify this report, as he said, down to the last 3-cent 
stamp. 

Mr. Kennedt. In that connection, was it the organizational ex- 
penses particularly in May that caused that ? 



3350 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Meany. Of course, Mr. Kennedy, I didn't have a chance in 
one evening to go really into the entire thing. But the thing that 
struck me about it was this: This agreement between the dissident 
group of the CIO Textile Workers, headed by George Baldanzi and 
the AFL United Textile Workers, was consummated somewhere 
around May 20 or 22, in around there, towards the last week of May 
in Boston. And these tremendous organizational expenditures that 
appeared for the month of May, I just couldn't see how they could have 
used that much money in a campaign that was hardly underway. It 
could hardly have been underway more than 1 week in the month of 
May. 

By comparing the previous month's expenses, it looked like this was 
padded in order — for some reason, of course, which I didn't understand 
at the time. 

Mr. Kennedy. The record here shows for the organizational ex- 
penses in May to be $119,197.86, general organizational expenses. 
You felt that figure itself was excessive? 

Mr. Meany. It wasn't that figure. It was the individual expenses 
of the various organizers in which I compared March, for instance, 
with May. There would be this lump-sum item of many thousands 
of dollars which was not used by these organizers as a normal thing, 
to indicate that there was hall rent, radio time and everything used 
for these large expenses in the month of May. 

I just felt they couldn't have used that amount of money in the 
month of May because the campaign had really not gotten underway 
until, really, around the first of June. 

It was those items that drew my suspicions at the very outset. 

Mr. Kennedy. And they were listed as general organizing expenses 
in the South and the Midwest ? 

Mr. Meany. Yes. There were certain other items, when I got into 
it later on, that I questioned, certain checks that were drawn for organ- 
izing expenses without any explanation, and they were drawn, 
evidently drawn, to cash and then supposed to have been allocated to 
these other places. 

As I say, I told them I thought the report was not an honest report, 
that it was a phony report. 

They stated, then, Mr. Klenert stated then, that he was no longer 
interested in the loan, that his only interest in life was to prove his 
integrity, and he was going to justify and document this report down 
to the last three-cent stamp. 

Mr. Kennedy. Mr. Chairman, I might just say in connection with 
the report of March 1952, the general organizing expenses are listed 
as $85,746.86. In April 1952, the general organizing expenses are listed 
as $39,130.64. The May one I have put in. 

The Chairman, May was how much ? 

Mr. Kennedy. $119,197.86. 

The Chairman. Mr. Meany, I believe he told you that his only in- 
terest thereafter, when you questioned the validity of this report, was 
to substantiate it, to document it, to show that it was a valid and cor- 
rect report and, thus, defend his integrity, so to speak. 

Mr. Meany. Yes. 
. The Chairman. Did he ever document it ? 

Mr. Meany. Well, when I returned to Washington a few days later, 
I guess it must have been 10 days later, and I had not heard — I didn't 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3351 

have any message from him — I called Mr. Valente on the telephone and 
reminded him that they were going to give me this document, the 
report, justifying the statements submitted before, and they said they 
were working on it. 

On, I would say, around August 27, I got another report by a cer- 
tified public accountant, and with the other report came the admission 
that the first report was not a proper report, that this new report 
showed the true situation. 

The Chairman. So, instead of documenting it and establishing the 
integrity of it 

Mr. Meant. They just forgot it. 

The Chairman. They just forgot it. 

What was the name of the auditor ? 

Mr. Meany. a man by the name of Jansson. 

The Chairman. I believe he already testified. 

Mr. Meant. I believe so. 

(At this point, Senator Curtis entered the hearing room.) 

Mr. Meant. Following the receipt of the second report, Mr. Jansson 
came in to see me. I didn't send for him, but he came to see me and 
said that he understood that I had received this report and that there 
were certain items in it that he felt he had to explain in order that 
his position might not be misunderstood; and then he submitted an 
affidavit of some kind, which is also contained in the report, which 
indicated that while there were certain transactions that took place 
in May and June of that year, between this union and the title com- 
pany here in Washington, that his first knowledge of those transactions 
was, I think, on the 26th of August, which was the day before he 
submitted his report under date of August 27. 

The Chairman. In other words, as soon as he found out that he 
had made an erroneous report based upon the first information that 
he had received, knowing you had that report, he contacted you and 
explained what had happened? 

Mr. Meant. Yes, that is right. 

The Chairman. All right. 

Mr. Meant. So in September, in New York City during September, 
I submitted this entire matter to the executive council of the American 
Federation of Labor. 

The Chairman. Mr. Meany, for purposes of the record, I will 
present to you exhibit No. 41, which appears to be the certified public 
accountant's report which, as I recall, was the accurate one that he 
submitted. 

For the record, would you examine it and see if you identify it? 

It is already in the record, but I thought you might identify it, also. 

(Document handed to witness.) 

Mr. Meant. Yes, this is the one. 

The Chairman. Thank you very much. 

Mr. Meant. This was the report which was submitted in the latter 
part of August. 

Mr. Kennedt. Mr. Meany, up until this time had Mr. Klenert or 
Mr. Valente, or anyone else, told you how the money had been spent 
or what had happened to the money ? 

Mr. Meant. No. 

Mr. Kennedt. Did you have any information indicating that they 
had used the money for their own personal benefit ? 



3352 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Meant. Well, I had some information that was quite — well, it 
was in the rumor stage, a rumor going around that they had purchased 
houses with the textile workers' money. So when we had our execu- 
tive council meeting in New York during the 1952 convention, I 
submitted this entire matter to the executive council of the American 
Federation of Labor. 

While it was not the policy of the AFL — in fact, it was almost a 
tradition — that the xiFL did not interfere with the autonomous affairs 
of any of its national unions, I took the position that I was in posses- 
sion of this information from the textile workers' offices, and I did 
not predicate my request to the council that they take this matter 
up on the basis of rumors which were current at the time but I based 
it strictly on the information presented to me by the officers of the 
Textile Workers Union, that they had presented to me a report which 
they afterward admitted was a false report, and that they then sub- 
mitted another report, and that there was something, I felt, rather 
fishy about the whole business. 

I insisted in presenting this matter to our council, that having this 
information, that while the policy of the AFL was not to interfere 
in the autonomous business of any of its affiliates, the fact that I was 
in possession of this information compelled — was a very compelling 
reason in this case to bring the information to the attention of the 
ruling body of the Textile Workers Union, unless there could be some 
explanation b}^ the officers. 

As a result of that request on my part, the executive council ap- 
pointed a subcommittee of the council, consisting of Mr. Tracy, Mr. 
Doherty, and myself, and instructed us to get a satisfactory explana- 
tion of what had happened, or what had taken place, from Klenert and 
Valente, and, failing to do that, to insist that they call in their exec- 
utive board of their national union so that all this material could 
be presented to their executive board. 

On September 23 or 24, all of this material was presented to their 
executive board, and their board of trustees at a meeting held in the 
Commodore Hotel in New York City, at which Mr. Doherty and Mr. 
Tracy and myself appeared as a subcommittee representing the execu- 
tive council of the AFL. 

A stenographic record of that meeting was made, and following 
the meeting and all the matters, of course, were presented to the 
board — following the meeting some few weeks later, I sent that sten- 
ographic record to every single member of their board by registered 
mail, and also their members of their board of trustees who were 
present at that meeting. 

(At this point, Senator McNamara entered the hearing room.) 

Mr. Meany. I was informed right following the September meeting 
that the textile workers board had appointed a subcommittee to look 
into this matter. 

In January of 1953, we received a report from this subcommittee in 
which they said they had gone into all the matters, and had submitted 
their re])ort to the executive board of the textile workers, which report 
had been unanimously approved by the board. They made that re- 
port on January 4, I believe, and informed me by letter on January 
28. 

The Chairman. I hand you what purports to be a photostatic copy 
of that report, together with a letter of transmittal to you on January 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3353 

28. Would you examine the photostatic copy of the letter and the 
report, and state if you identify it, Mr. Meany ? 

(Document handed to witness.) 

Mr. Meant. Yes, that is it. 

The Chairman. The letter and the report may be made exhibit 
No. 47. 

(The document referred to was marked "Exhibit No. 47" for refer- 
ence and will be found in the appendix on pp. 3563-3568.) 

The Chairman. We will proceed. 

Mr. Kennedy. They made this report to you also, Mr. Meany ? 

Mr. Meant. This report was by letter to our executive council, 

Mr. Kennedt. What did the report find, and what was the sum 
and substance ? 

Mr. Meant. The sum and substance of the report was that none of 
the money of the textile workers had been misused; that all of the 
money had been properly used and all of the money that should be in 
their treasury was in their treasury, and there was no connection be- 
tween the purchase of houses by these officers and the withdrawal of 
money from the textile treasury ; that this $95,000 which was in ques- 
tion was used to place a deposit with a title company toward the 
purchase of a site for an office building sometime in the future. 

When that $95,000 was returned, it was replaced by $57,000 sent 
to the same title company, also for the same purpose of placing a de- 
posit in the hands of the title company, in case they wanted to buy a 
piece of property. 

The Chairman. Did you ever know up to that time, Mr. Meany, 
that they had actually used $57,000 of this $95,000 to buy two homes? 

Mr. Meant. I didn't know it. I suspected that, but of course I 
had no way of proving it, because they just denied it and there was 
no way I could bring documentary proof that they had used the money 
for that purpose. 

Mr. Kennedt. Did you feel, based on the report you received, that 
a proper investigation had been made by the board ? 

Mr. ]Meant. No. 

Mr. Kennedy. Do you have any explanation of the report that they 
submitted to you ? 

Mr. Meant. No. We merely accepted tlie report with a letter to 
them pointing out that they hadn't made the proper explanation and 
we got no further reply from them. That was the end of it. 

The Chairman. Is tliis a photostatic copy of the letter that you 
now refer to, Mr. Meany, addressed to Mr. Valente, on February 19, 
1953 and signed by you as ])resident '? 

(A document was handed to the witness.) 

Mr. Meant. Yes, that is it. 

The Chairman. That may be made exhibit No. 48. 

(The document referred to was marked "Exhibit No. 48" for refer- 
ence and will be found in the appendix on pp. 3569-3570.) 

Mr. Kennedt. Did it disturb you that the committee had not made 
a more thorough investigation ? 

Mr. Meant. It disturbed me a great deal, because I felt and I sup- 
pose I was rather naive, I felt that all that was necessary in this case 
was to acquaint the ruling body of tliis union with the fact that their 
money was being used in a rather loose fashion, and that they would 



3354 IMPROPER ACTIVITIES EST THE LABOR FIELD 

make a complete investigation and demand from these officers the 
facts, but evidently I was a little too optimistic about that. That 
just didn't happen. 

Mr. Kennedy. And did it disturb you at the time that there should 
be a report signed by five of the officers completely whitewashing Mr. 
Klenert and Mr. Valente ? 

Mr. Meany. It did disturb me but there was nothing that I could 
do about it. 

Mr. Kennedy. There were no steps that the AFL could take at that 
time? 

Mr. Meany. No. 

Mr. Kennedy. Could you explain that to the committee ? 

Mr. Meany. Well, at that time, the policy of the AFL and its tradi- 
tional policy for many years, was not to interfere with the affairs of 
anjT^ of its national unions. In this particular case, on my request, 
the AFL Executive Council agreed to submit to the ruling body of 
this union the information which I had in my possession on the 
assumption that they would do something. However, they didn't do 
anything, and there was nothing further we could do about it. 

However, later on, we did assert a certain amount of authority 
over our unions, on affairs of this type, beginning in February of 
1953. I tliink that was the first case on record where the American 
Federation of Labor asserted that they had a right to look into the 
affairs of international unions on questions of corruption. 

While that was not a policy of the AFL, it was an asserted policy 
on the i^art of the executive council in the case of the International 
Longshoremen's Association, and that policy was approved at the 
1953 convention in September of that year, held in St. Louis. 

Of course, in the development of the merger negotiations with 
the CIO, we went much further than that, and we now have a con- 
stitutional policy on these questions which we have implemented 
through a sort of code of ethics in regard to any number of items in 
the field of what might be termed ethical practices on the part of trade 
unions. 

The Chairman. Is that code retroactive? In other words, it was 
adopted this year, as I recall, Mr. Meany, and would that apply to 
cases in the past ? 

Mr. Meany. I think that it would, Mr. Chairman. I am quite sure 
that in this specific case it will apply, because through the instru- 
mentality of this committee and through the fact that you have the 
power of subpena and that you can bring men like Mr. Quigley in 
here, and get information from them, because you have a way of get- 
ting the truth in these matters, you have brought out information now 
that I think will enable me to refer this matter to the ethical practices 
committee. 

The Chairman. The reason I asked that question, Mr. Meany, is 
because a great deal of our work, the work of this committee, will in- 
volve matters and incidents that occurred prior to the establishment 
of the ethical practices code of your union. I make this statement on 
my own, and I do not bind any other member of the committee, but 
it does occur to me that the work of this conmiittee as we reveal some 
of these things, and make these disclosures, can be very helpful to 
your union in the matter of applying those ethical practices. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3355 

Senator Ives. ]\Ir. Chairman, may I interpose something there? I 
want to say that I think that the work and effort of Mr. Meany him- 
self as president of the American Federation of Labor- Congress of 
Industrial Organizations, and his cooperative spirit where we are con- 
cerned, is very helpful to us. I am sure that when I say this, I speak 
for every member of the committee. We deeply appreciate that, and 
we commend him for it, and we commend his great organization for 
the steps they have taken in trying to straighten out these matters 
themselves. We are very glad to do whiU we can to give you the in- 
formation that you need to enable you to clean house, and I am satis- 
fied, knowing you, :lv. Meany, as I do, that you are going to do that. 

Mr. Meany. Well, I can assure you. Senator, we are going to follow 
the principles laid clown in our constitution in this matter, and as I 
explained a moment ago this was rather a drastic step, but it was indi- 
cated as being necessary by developments such as this one, when we 
actually and in a sense we have demanded, a surrender of a certain 
amount of autonomy on the part of the organizations. 

Now, after all, you must remember that the AFL-CIO is a voluntary 
organization of unions. We do not create the unions. It is the other 
way around : the unions in the original instance created the central 
organization, both the CIO and the AFL. AVhen we charter new 
unions, of course, they are in the same position as the unions that 
originallv created tlie Federation. 

So under those circumstances, the federation merely has whatever 
powers are voted to it by the founders. At the AFL-CIO convention 
which created the merged organization, the founders of that organiza- 
tion did vote to the central organization certain powers which were 
never in the AFL constitution or in fact in the CIO convention be- 
fore it. 

Of course, even with those powers, however, we are limited, and we 
are not a law enforcement agency and we have no way, for instance, of 
going into a bank in Seattle and have them tell us what sort of busi- 
ness they did with one of their customers, and you people can do that. 
You now — if I am right, according to what I read in the newspaper, 
in this ])articular case — you now have an admission that union money 
was used to purchase these homes. We could not get such an admis- 
sion. In fact we got an absolute denial that any such thing as that 
took place. 

So you have now brought that out, and I think on the basis of 
that we can now move again in this case as we are moving in other 
cases on the basis of the record made by this committee. 

Now, when I say that we are not a law enforcement agency, I am 
not protesting or making any protest against the state of things, be- 
cause I don't think that we should be a law enforcement agency, but I 
think that we have a right and a duty and an obligation to our people 
to try to run unions just as clean as they can be run. And run them to 
the benefit of members and not for the benefit of George Meany or 
anybody else. 

Senator Goldwater. INIr. Meany, I am glad that you have ex])ressed 
yourself as you have in this field, because I had announced the other 
day after questioning the chief counsel that I had some questions to 
ask you in this held, although they do not pertain to the American 
Federation of Labor side of the joint organization. First I think that 



3356 IMPROPER ACTIVITIES IN THE LABOR FIELD 

you are to be commended, your top group, for the way that you moved 
against Mr. Beck. 

Now, the questions that I want to ask you pertain mostly to the 
other side of this merger, and you being president, I think may shed 
some light on it, because it is from the other side that we hear the most 
about ethical practices. I just want to read a few statements here out 
of some of your proceedings in Miami Beach, in January and early 
February of this year. 

First is regarding cooperation with all appropriate public agencies 
investigating racketeering, and the organization said ; and I quote : 

It is the firm policy of the AFL-CIO to cooperate fully with all proper legis- 
lative committees, law-enforcemeut agencies, and other public bodies seeking 
fairly and objectively to keep the labor movement or any other segment of our 
society free from any and all corrupt influences. This means that all officials of 
the AFL-CIO and its affiliates should freely and without reservation answer all 
relevant questions asked by proper law-enforcemeut agencies, legislative com- 
mittees and other public bodies, seeking fairly and objectively to keep the labor 
movement free from corruption. We recognize that any person is entitled, in the 
exercise of his individual conscience, to the protection afforded by the fifth 
amendment and we reaffirm our conviction that this historical right must not be 
abridged. It is the policy of the AFL-CIO, however, 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. Otherwise, it becomes possible for a union official who 
may be guilty of corruption to create the impression that the trade-union move- 
ment sanctions the use of the fifth amendment, not as a matter of individual con- 
science, but as a shield against proper scrutiny into corrupt influences in the 
labor movement. 

Now, Mr. Reuther, who is connected with the other side of your 
merger, had this to say about it; and I quote from a letter of his of 
June 5. 

After emphasizing the rights of all Americans to protection under 
the fifth amendment, the letter nevertheless went on to say : 

* * * When a member of the UAW holding either elective or appointive of- 
fice chooses to use the fifth amendment, the matter is no longer purely personal 
for such member's holding of a union office immediately and inescapably involves 
the union as an organization in the matter. 

I don't want to bore you too much longer, but he further goes on to 
state in a resolution adopted by the UAW of April 7 to 12 of this year, 
under ethical practices, paragraph 5 : 

We support the principles that, while respecting the right of every individual 
to exercise the fifth amendment or any other constitutional privilege, we believe 
that people in positions of leadership in labor should not continue in such posi- 
tions of leadership if, in order to avoid personal incrimination, they use the fifth 
amendment and refuse to testify on matters of their personal conduct as it relates 
either to corruption or communism. 

Now, Mr. Meany, as you undoubtedly know, during the course of 
hearings before the Internal Security Subcommittee in this Senate, 
during the last several months, there have been a total of 12 individuals 
connected with the UAW who have taken the fifth amendment when 
asked a question about membership in the Communist Party. All but 
one of those people have been officials in the UAW-CIO, ranging from 
president of the engine division, secretary of tool and die section, chief 
steward, member of bylaws committee, vice president of Ford local 
660, financial secretary of Ford local 660, and that type of official. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3357 

Yet only two of those people have been removed from these offices 
of responsibility by the UAW. 

Do you have any knowledge of any action that is being taken by Mr. 
Reuther to see that these others are removed from office ? 

Mr. Meant. Well, Mr. Reuther sent me a long memorandum which 
he distributed to his affiliates on this question, and it sets forth a proce- 
dure which they go through in determining these cases along with all 
other cases. The final step in that procedure is an appeal to a public 
committee on which no representatives of the trade union sits, on the 
question of discipline of any of these members. 

Now, I assume. Senator, that they are going through that procedure. 
I have no reason to assume otherwise. That is the procedure which 
was formulated I imagine by their board after the convention, in order 
to implement the action of the convention. I assume that they are 
going through that procedure. I have no reason to believe otherwise. 

However, I can check and find out with regard to these cases. I 
know the machinists had some cases, and they summarily discharged 
3 men, and I think there were 8 or 9 others that are going through 
some sort of a trial procedure. After all, no matter how many of these 
rules you lay down, they don't operate automatically. These men 
must be brought in and faced with their accusations, or whatever ac- 
cusations are made against them. 

I am quite sure that the auto workers will follow the principles laid 
down by the ethical practices code of the AFL-CIO, and by their own 
convention. 

Senator Goldwater. I appreciate what you say. 

Mr. Meant. I can find out what happened to the others, but I am 
quite certain that those cases are in the works. 

Senator Goldwater, I would appreciate knowing. From the pub- 
lic press, it is difficult to know. And knowing Mr. Reuther's penchant 
for public relations and utterances to the press, I am a little surprised, 
if it is in the works, that it has not been thoroughly exploited by his 
very active public relations division. 

Ml'. Meant. How many do you say were involved ? 

Senator Goldwater. There were 12 altogether, and 2 I believe had 
had action, and 1 of them was not an official, and the others were. 

I have a copy of the release that you referred to, and I have read 
it over very carefully, and it is quite a compilation of words. It gets 
around the bush, and it doesn't jump in the middle of it. But the 
American people received this code of ethical practices that I believe 
you pronounced first, with open arms. They felt that here at last the 
leadership of American unions recognized that this was needed. 

The most vociferous ex])onent of ethical practices has been Mr. 
Reuther. The most practical applicant of the rules has been the 
AFL. I want to compliment you on that. I am hopeful that your 
report will indicate that Mr. Reuther is proceeding to take the proper 
action against these individuals that have come down here and in vio- 
lation of the code of ethical practice, taken the fifth amendment, and 
now that we have recently discovered it through a decision of the 
Supreme Court, the first amendment. 

I have only two other questions that I want to ask you and they are 
not related to this but they are related to recent happenings. 

In view of the fact that Mr. Hoffa has now been exonerated, do 
you believe that he would be O. K. to head up the teamsters union ? 

89330— 57— pt. 9 10 



3358 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Meant. Senator, I would not care to comment on that. The 
case of the teamsters union is before our ethical practices committee, 
and it involves a great many people in addition to its president. As 
a member of the ethical practices committee, as an instrumentality 
of our executive council, and as a member of our executive council, 
I more or less have to sit along with the other members of the council 
in judgment on these things, and I would not care to comment on it 
at this time. 

Senator Goldwater. You would not want to say whether you take 
the ruling of the court the other day as a complete clearing? 

Mr. Meant. I don't want to comment on it at all. 

Senator Goldwater. I have one other question then. I ask this 
knowing that I probably could have been better posted had I kept 
up with the news, but since the merger of the AFL and CIO have 
there been any negotiated contracts under the combined AFL-CIO, 
or do you still operate as AFL and CIO separately in negotiating? 

Mr. Meant. Senator, you are talking about negotiated contracts. 
You mean collective-bargaining contracts ? 

Senator Goldwater. Yes. 

Mr. Meant. The AFL never engaged in collective bargaining, 
nor did the CIO as a national organization. All of those contracts 
are negotiated by the member units of the organization. 

Now, the international office will assist in those things, but actually 
we don't negotiate contracts. 

Senator Goldwater. Then when a contract is negotiated in Phoenix, 
Ariz., by the plumbers union, member of the old AFL, it is done in 
the AFL name and not under the signature of the AFL-CIO ? 

Mr. Meant. No ; it would be done under the signature of the AFL- 
CIO, because if the plumbers union is in the united association, it is 
a member unit of the AFL-CIO. 

Now, in some cases, in the NLRB elections, the unions in the metal 
trades will go into an election all together, and they will negotiate 
and bargain as metal trades department, AFL-CIO. 

Now, if you are asking whether there are contracts negotiated be- 
tween old imits of the AFL and old units of the CIO together, I 
don't think that that has happened. But there wouldn't be anything 
against it if any two unions decided to work together in the collective 
bargaining field. 

Senator Goldwater. Then you do use tlie title, "AFL-CIO" as 
you negotiate down at the local level ? 

Mr. Meant. There is no such title as "AFL" by itself or "CIO" by 
itself, and there is only the combined title. 

Senator Goldwater. Thank you. 

Senator Mundt. Mr. Meany, as you describe the organizational 
structure of the CIO or AFL-CIO with its member units, it sounds 
very much like you were talking about the American Constitution, 
and the Federal Government and its several States. The Federal 
Government has only those powers specifically delegated to it by the 
States and by the people. 

Would you say that that is a good analogy and your central body 
has only those powers specifically delegated by the members? 

Mr. Meant. In fact, Senator Mundt, that was the example cited by 
Gompers more than 60 years ago, justifying the structure of the 
AFL. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3359 

Senator Mundt. I recall that, and I wondered if that had carried 
over now to yonr merged structure. 

Mr, Meant. Well yes, that is our merged structure, except that in 
setting up the merged Federation we transferred to the central or- 
ganization more powers than either AFL or CIO had had before. 

Senator Mundt. That power was in turn delegated ? 

Mr. Meant. Delegated, and in other words, they surrendered some 
portion of their autonomy in this particular field as a condition of 
membership in the AFL-CIO. 

Senator Mundt. Thank you. Now, on the ethical practices code, is 
that designed to protect not only the integrity of the union and the 
integrity of the dues and democratic ])rocesses of union members, but 
is the ethical practices code also set up so as to protect the public ? 

Mr. Meant. Well, I think that in the final analysis, that anything 
that we do in trying to keep our unions run right, is not only protec- 
tion to our union members, but ]:)rotection to the general public, and 
to the employers because in the final analysis if these practices cost 
money, inevitably the public ]:)ays that mone}', some way or other. 

Senator Mundt. The reason I asked that question, in the letter that 
Senator Goldwater read from Mr. Reuther, it mentioned men who 
took the fifth amendment from the standpoint of corruption and from 
the standpoint of communism. 

I wondered if the same rule applied to a union member or union 
leader who might take the fifth amendment involving some allega- 
tions, let us say, of violence, dynamiting property, or shooting at a 
vehicle. 

Mr. Meant. Well, I think that would depend on the circumstances 
and what interpretation is placed on the question of an ethical prac- 
tice. That perhaps would not be corruption in the sense that the 
word is used, but I certainly feel that it is a matter that would properly 
come under our code. 

In other words, we do not feel that it is proper in order to gain 
our objectives to use illegal methods. We do not countenance them, 
and we are not in favor of them. 

Senator Mundt. So such a man taking the fifth amendment would 
come under the purview of your ethical practices committee and be 
given the same rights and no additional rights to be heard and to be 
faced with his accusations as though he had taken the fifth amend- 
ment, let us say, under communism. 

Mr. Meant. I would say so. 

Senator Mundt. What would be the attitude, Mr. Meany, of the 
ethical practices committee concerning a union leader who had been 
convicted, let us say, of extortion ? 

Mr, Meant, I would assume if he was convicted of extortion, he 
could not possibly hold union office. 

Senator Mundt, Our committee has some instances of union officials 
who have been convicted and still hold union office, and I wondered 
whether or not they would not come under that. 

Mr. Meant. I would not want to make a blanket decision without 
knowing the circumstances. I know that it is possible that men have 
been convicted of crimes that are trying to lead a better life, and it 
would all depend on the circumstances, but I would say offhand a 
union leader who is convicted of corruption and extortion, he should 
cease to be a union leader forthwith. 



3360 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. He certainly would fall within the purview of the 
analysis which your ethical practices committee would make? 

Mr. Meant. I would say so. 

Senator Mundt. And in his case, of course, he has already been 
faced with his accusations, and he has lost out. 

Mr. Meany. That is right. 

Senator Mundt. Under our court system, and he has gone to the 
penitentiary, your committee, I presume would welcome from our 
committee, any such evidence which might come to hand ? 

Mr. Meant. Yes ; I would say so. 

Senator Mundt. What are the mechanics, Mr. Meany, if you do 
not mind telling us, of removal ? 

Let us say we have a clear-cut case of a man that you want to re- 
move, and that you feel should be removed, and can you summarily 
remove him even though he has a contract, or what happens ? Do you 
have to refer it back ? 

Mr. Meant. We have to refer it to whatever agency put him in 
there. If he was put in there by his own union, we would have to 
instruct and give directions to that union to see that he is removed. 

Now that, of course, would not remove him and they might decide 
not to remove him and we have to decide what is the next step. 

Senator Mundt. I was going to ask you, do you have some reserve 
power ? 

Mr. Meant. We are in the same position as a merchants' association 
and I am quite sure that you are familiar with merchants' associations 
along the various streets and avenues of our big cities where such as 
the Fifth Avenue Association, or Madison Avenue Association and so 
on and so forth. 

That association does not run the affairs of any of those merchants. 
They do set up certain standards which they feel are in the interest of 
all of the merchants on that one particular street or in that one particu- 
lar area. 

All they can do if the merchant does not live up to the standards is 
just say to him, "Well, you can't belong any more, and we are going 
to put you out." 

That is about all we can do, if the union tells us they won't do this, 
that, or the other thing. 

Senator Mundt. But you have this power delegated to you by the 
organizations ? 

Mr. Meant. This power of expulsion is not in the hands of the coun- 
cil. It is in the hands of the convention. We had a case in point in 
the International Longshoreman's Association and we told them in 
February of 1953 what they had to do. Of course, they pretended to 
do what they were supposed to do, but actually they did not do any- 
thing to clean up their situation. 

They were expelled from the AFL in September of 1953 by the con- 
vention. The same is true in the AFL-CIO, that no union can be 
expelled except by a convention. 

Senator Mundt. Let me now recapitulate how this operates as I 
understand it, and you correct me if I am wrong : 

Under the ethical practices procedure, when a case has been brought 
to the attention of the ethical practices committee or board or com- 
mission or call it what ever it is, you set up some kind of hearing 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3361 

process whereby the accused has a chance to be confronted with his 
accusations. 

Mr. Meany. That is right. 

Senator Mundt. If you then find that he is guilty, you recommend to 
his local union. 

Mr. Meant. To his national union. 

Senator Mundt. To his national union ? 

Mr. Meant. Yes. 

Senator Mundt. That he be removed even though it is a local office 
that he holds? 

Mr. Meant. Well, the local officer would not come before us. The 
local officer would come before the national union. 

You see. Senator, there are sixty-odd thousand local unions, member 
units of member units of the AFD-CIO. We have 140 national unions. 
We are trying to operate through those 140 national unions. If local 
officials come into this picture of ethical practices, they must be 
handled by the national unions. 

Now, what we would do in a case of a local official, we would say to 
the national union, "we feel that you should act in this particular case." 
If the national union fails to act, then we have to decide whether that 
constitutes an evasion of the ethical practices rules of the AFL-CIO, 
but any action we would take would have to be against the national 
union, because the local unions hold their affiliations by virtue of the 
fact that they are member units of national unions. 

Senator Mundt. Actually, it works about the same as far as the 
ethical practices committee is concerned. You work through your 
national affiliate. 

Mr. Meant. That is right. 

Senator Mundt. And your sole enforcement power your sole power 
of implementation if they refuse to act, is to suggest to the national 
convention that they be disenfranchised. 

Mr. Meant. That is the only final power we have. 

Senator Mundt. Thank you. 

The Chairman. Senator McNamara. 

Senator McNamara. In connection with this line of questioning 
from Senator Mundt, you made some inferences in reply to the ques- 
tion, Mr. Meany, as to the extenuating circumstances where a man 
might be living or trying to rehabilitate himself after perhaps being 
convicted of something. 

I think that is pretty general in all walks of life. 

Mr. Meant. I think that is more or less one of the principles of our 
society. I happened to be a member of the Federal Prison Industry 
Board for many years and we see to it that graduates of Federal prisons 
who have learned a trade in the prison get into employment if we can 
possibly do so. 

The mstrumentalities that we use to help us in the Federal prisons 
setup are the unions throughout the country, as well as groups of em- 
ployers who will take a broad view of this. 

Now, of course, I am sure that if one of those fellows graduated to 
the point where he became an officer of a union, after rehabilitating 
himself, we certainly would not use our ethical practices code to de- 
prive him of that. 



3362 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator McNamara. That is a question I was leading up to. If a 
man is elected by the people that have elected him through democratic 
procedures, in any level of the union, you would not particularly hold 
that against him. 

Mr. Meant. I would not say that is the test at all, whether he is 
elected. I do not think that is the test at all, because we know of cases, 
Pat, where people are elected by muscle and other things, and it is a 
bad situation. 

I do not think that is the test at all. 

Senator McNamara. I said, "elected by democratic procedures." 
Mr. Meant. Well, all right. 

Senator McNamara. I think "elected by muscle" and "elected by 
democratic procedures" are two entirely different situations. 
Senator Goldwater. It is democratic muscle. 

Senator McNamara. If he has to have muscles, that is the kind T 
want. 

Senator Curtis. Mr. Meany, this has been answered in a sense, but I 
wanted to boil it down. Under your new constitution of the AFL- 
CIO, what power or powers do you have to penalize or otherwise disci- 
pline a national union that refuses to follow the ethical practices code? 
Mr. Meant. Just tell them they can't belong to the club any more, 
that is all. 

Senator Curtis. The power of expulsion ? 

Mr. Meant. That is all. In other words, it is the same as the mer- 
chants association that puts up a rule that you can't have more than 
1 fire sale a year and the fellow has 2 fire sales, so they kick him 
out. They don't go out and find out if he committed arson. They just 
kick him out. 

Senator Curtis. That has to be absolute expulsion or can it be a 
suspension for a period? 

Mr. Meant. Now in the case of the laundry workers, we have sus- 
pended the Laundry Workers International Union, and suspended 
them 2 months ago. They will stand suspended until our convention 
to be held in December of this year. 

In the meantime, if they can convince the ethical practices commit- 
tee and the executive council that they are trying to straighten out 
their problem, then, of course, the convention could continue the sus- 
pension or they could lift it, and on the other hand the convention 
could expel them. 

Senator Curtis. Only the convention has the power of expulsion ? 
Mr. Meant. Yes, only the convention. The executive council has 
the power of suspension, but not of expulsion. 

Senator Curtis. Now, coming back to 

Senator Mundt. Would the Senator yield on that point? How 
serious is this business of expulsion ? Do they lose their bargaining 
power then with the NLRB ? 

Mr. Meant. Theoretically it is not very serious, but somehow or 
other they feel the value of the association and it has had some effect. 
Now, of course, we have cases where unions are expelled and they 
just go on their way, as for instance the longshoremen. Even in that 
case we feel that we have made a tremendous gain because while the 
people that we objected to are still running that union, the treatment of 
the individual member and the condition of the individual member 
has improved tremendously since we took action in 1953. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3363 

Senator Mundt. It might be serious in a case like this, where an ex- 
pelled union called a strike and other union members of the club who 
had followed the ethical practices might not feel under the same com- 
pulsion regarding crossing the strike line. 

Mr. Meany. I think so. I think that would have something to do 
with it; yes, sir. 

Senator Mundt. There are social pressures which would operate 
against them, the same as anybody else who has been ostracized. 

Mr. Meany. Yes. 

Senator Curtis. Coming back to this situation with the textile 
workers, who was it that first referred the matter to you or brought 
to you information that there might be something wrong with the 
books and accounts of the textile workers? 

Mr. Meany. Actually, Senator, outside of the rumors that were 
around, the information came from the officers themselves. In other 
words, they gave me a report which I examined for a very short time, 
and decided it was absolutely false. 

So when they were making a false report, I figured there must be 
some reason for it. Naturally, I associated the rumors that were 
around, that were quite current around in Washington about these 
transactions, with the fact that they had made a phoney report and 
I pretty much at that time decided that I was going to be very careful 
before I loaned them any money, at least. 

Senator Curtis. So no particular individual or no dissenting officers 
lodged a complaint? 

Mr. Meany. No dissenting officers. Now, I want to be very frank 
with you, that some of tlie information that I characterized as "rumor" 
in the sense that I could not substantiate it or prove it, came from 
people who were in the banking profession and in the legal profession. 

Senator Curtis. About when was that, that it first came to your 
attention ? 

Mr. Meany. I would say in July of ldb'2. 

Senator Curtis. Now, is the matter closed now, or what is the status 
of it? 

Mr. Meany. The matter was closed in January of 1953 by the action 
of their executive committee, giving them a complete whitewash, 
unanimously approved by their executive connnittee. 

The status of it at this moment, however, is that I am going to 
reopen the case before our ethical practices committee because this 
senatorial committee has developed some things under oath that we 
could not possibly develop during our investigation. 

For instance, we were told very flatly by this group that all of this 
money was properly used, and that no money was used improperly. 
If I understand the news records of this hearing here last week, you 
have an admission that the money was used improperly for personal 
expenses and personal benefits of some kind. 

Therefore, on the basis of what this committee has turned up, we 
are certainly going to look into that case. 

Senator Curtis. In other words, the matter was closed back then, 
but it is goi]ig to be reopened. 

Mr. Meany. It was closed more than 4 years ago, because we 
reached the end of our rope at that time, and we could not go any 
further. We had no proof. We had certain very suspicious circum- 
stances which we presented to the ruling body of that organization 



3364 IMPROPER ACTIVITIES IN THE LABOR FIELD 

and tliey turned around and gave a complete whitewash to these 
officials. 

Senator Mundt. The improper information which we apparently 
have developed seems to be that these two officers have purchased with 
union funds homes for themselves. 

Now, do I understand from you that under the various constitutions, 
that if a union should decide, as it well might, that as part of the 
emolument of the offices, they are going to purchase a home for a 
union official, that is something which an executive council could not 
decide. 

That would have to be done by a voting convention of the union? 

Mr. Meant. I would think that if it were done and were done by 
the union itself, openly and aboveboard, that it could not be con- 
sidered as corrupt. But surely, this was not done in that fashion at 
all. 

Senator Curtis. In that case, the title would belong to the union, 
too, would it not, if they chose to provide a residence for their officers? 

Mr, Meant. I imagine so. In this case, of course, we were told 
that the money was sort of sequestered to see that someone would not 
steal it. And, of course, what better way than to put it in your own 
home where you can keep it under daily surveillance ? 

Senator Curtis. Now, Mr. Meany, you are not only limited in what 
you can do to investigate, because as you cited this committee had cer- 
tain powers to look into bank accounts and so on, you are also limited 
in what punishment or disciplinary action you can mete out. Is that 
not true ? 

Mr. Meant. That is true. 

Senator Curtis. Because an expulsion is rather a broad and im- 
portant act because it is going to involve a lot of individual members 
who are blameless of any misconduct. Is that not right ? 

Mr. Meant. That is true. 

Senator Curtis. Now, in your opinion, should violence if it exists 
in strikes or in organizational efforts be a subject of investigation of 
this committee ? 

Mr. Meant. It would depend on just what the circumstances were. 
I do not think that we would want to investigate things that happened 
in strikes. We know that we have had a long history in this country 
where men are free to walk out and employers are free to shut down 
their business, and surely we are not going to spend our time investi- 
gating disorders on the picket lines and things like that. 

Senator Curtis. I am not speaking of minor disorders, but if our 
investigators found a few situations of rather extreme violence or a 
pattern of violence, either in strikes or in organizational efforts ? 

Mr. Meant. I think we would be willing to look at it, but I say it 
would depend on the circumstances. 

Senator Curtis. Do you think that this committee should ? 

Mr. Meant. I do not see any reason why this committee should not 
look into anything in the labor-management field, and I do not know 
of any reason why you should not. 

Senator Mundt. Why it should not, you say ? 

Mr. Meant. I don't know any reason why you should not look into 
these things. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3365 

Senator Curtis. And if we would find that allegations of a certain 
business did not exist, it is to the benefit of the individuals involved 
to so show that they are not existing ; is that correct ? 

Mr. Meant. Yes. 

Senator Curtis. That is all. 

Senator Kennedy. Mr. Meany, this report that we have of the 
United Textile Workers of America, or this letter to you of January 
28, 1953, was signed by five members of a committee representing 
the international executive council. 

That gave a clearance to this deal and this whitewash report is 
highly unsatisfactory and inaccurate. One of the things brought out 
the other day was that the salary of the members of the international 
executive council were set by the president of the United Textile Work- 
ers of America. 

In the case of the bakers union, Mr. Cross' union, it was brought out 
that of the 17 members of the executive board, the salaries of two- 
thirds of them were set by the president with approval of the executive 
board. 

Now, in these cases where a union may have an election once every 
5 years, the executive board is really the only organization which 
can serve as a check on either improper or corrupt activities engaged 
in by a president. 

It seems to me that it would be worthwhile attempting either through, 
ethical codes or some other way, of freeing the members of these exec- 
utive boards from any financial connection or having the president 
have any financial control directly or indirectly, over the means of 
livelihood of this executive board if we are really going to have a 
worthwhile check. 

Mr. Meant. I think that is one of the problems that we have to 
face. I think the case you mention certainly points it up. Naturally, 
these executive boards are elected by conventions, but in some cases, 
the convention provides no salary for them except a nominal fee for 
attending meetings. 

Then, of course, if they are appointed to an international position 
as an organizer, in which they get a salary, then, of course, that means 
that their daily livelihood depends on the whim of the president of 
the union whom they in their capacity as executive board members 
must pass on. 

His actions must be passed on in that way. This points up a prob- 
lem which I certainly am aware of and am concerned about. Just how 
we can handle it, I would not say at this time. 

I think we are going to look into it. 

Senator Kennedt. Thank you, Mr. Meany. 

The Chairman. Are there any further questions ? 

All right, Mr. Kennedy. 

Mr. Kennedt. I have finished. 

The Chairman. Are there any further statements you wish to make, 
Mr. Meany ? 

Mr. Meant. I have none. 

The Chairman. Thank you very much. You may be excused. 

Call the next witness. 

Mr. Kennedt. Mr. Joseph Jacobs. 

The Chairman. Mr. Jacobs, will you be sworn, please ? 



3366 IMPROPER ACTIVITIES IN THE LABOR FIELD 

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. Jacobs. I do, sir. 

TESTIMONY OF JOSEPH JACOBS 

Mr. Jacobs. If it please the Senators, I should like to invoke rule 
No. 8 during my investigation, sir. 

The Chairman. Is that with reference to pictures ? 

Mr. Jacobs. Yes, sir, all this sort of thing. 

The Chairman. I beg your pardon ? 

Mr. Jacobs. And that sort of thing, sir, pictures and all. 

The Chairman. Do you make your request as to the movies? 

Mr. Jacobs. Yes, sir, please. 

The Chairman. All of them ? 

Mr. Jacobs. Yes, sir. 

The Chairman. Gentlemen, you heard the request. 

Without objection, the Chair grants it. 

There will be no pictures made, unless you want to make pictures of 
the Senators. 

State your name, your place of residence and your business or occu- 
pation. 

Mr. Jacobs. My name, sir, is Joseph Jacobs. My residence is 1367 
Pasadena Avenue, Atlanta, Ga. 

I am counsel, or an attorney, counsel for the United Textile Workers 
of America, sir. 

The Chairman. How long have you been counsel for them, Mr. 
Jacobs ? 

Mr. Jacobs. For a number of years, sir. 

The Chairman. Since you are an attorney, you, of course, waive the 
right under the rule to have counsel present to advise you while you 
testify? 

Mr. Jacobs. Yes, sir. 

The Chairman. Proceed, Mr. Counsel. 

Mr. Kennedy. Mr. Jacobs, you are the attorney for the United 
Textile Workers? 

Mr. Jacobs. That is correct, sir. 

Mr. Kennedy. As such, what are your financial arrangements with 
the Textile Workers? 

Mr. Jacobs. My financial arrangements with reference to attorney 
are a retainer, by which they pay me, I think it amounts to $50 a week, 
it is broken down to that. I have other duties for them as their direc- 
tor in their southern area, for which I get other compensation. 

My law firm, sir, has other compensation from them. I believe it 
is — I think it is $58 a week, broken down by the week. 

Mr. Kennedy. You get $50 a week personally, yourself ? 

Mr. Jacobs. That is correct, sir. 

Mr. Kennedy. And then your law firm gets $58 a week? 

Mr. Jacobs. That is correct, sir. 

Mr. Kennedy. What do they do ? What are their services ? 

Mr. Jacobs. I beg your pardon ? 

Mr. Kennedy. What services does the law firm perform ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3367 

Mr. Jacobs. Our law firm performs the duties of followup on tlie 
National Labor Relations Board cases, on the handling of demands 
after certification, and various other routine matters that are required, 
various other routine matters that are required in the operation of a 
union where there might be any legal questions that are involved. 

Mr. Kexnedy. Do you have any other financial connection with the 
union other than your law firm and yourself, personally ? 

Mr. Jacobs. As a southern director, I indicated, sir, that I did. 

Mr. Kennedy. I didn't quite get that. AAliat is a southern director ? 

Mr. Jacobs. As southern director, I receive, I believe it is, $150 a 
week, and a per diem that is $105, sir, per week. 

Mr. Kennedy, You receive $105 a week per diem ? 

Mr. Jacobs. That is correct. 

Mr. Kennedy. That comes indefinitely, is that right? It is not 
subject to your travel or your expenses ? It is just $105 a week ? 

Mr. Jacobs. That $105 is per diem, sir, for the coverage of hotel bills 
and meals. 

Mr. Kennedy. Do you also submit your hotel bills and meals to the 
union ? 

Mr. Jacobs. No, sir. 

Mr. Kennedy. That $105 covers all of that ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. And you get $150 a week organizational expenses ? 

Mr. Jacobs. Well, I don't know whether you would call it organ- 
izational expenses. For my services, I don't know how it would be 
listed, for my services as southern director, I receive $150 a week, sir. 

Mr. Kennedy. What States do you have under your control ? 

Mr. Jacobs. I work, sir, in Virginia, North Carolina, South Caro- 
lina, Georgia, Florida, Alabama, Mississippi, Tennessee, Kentucky, 
Louisiana, Arkansas, and Texas. 

I believe those are the States. 

Mr. Kennedy. All of that area is under your control ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. Do you have some vice presidents working under 



you 



Mr. Jacobs. If I might, before I answer that, I might say, sir, that 
from time to time I may have been called in to other areas for either 
certain work or for assistance in a particular situation in other areas 
of the country, 

Mr. Ivennedy. And do you have some vice presidents working under 
you in the south ? 

Mr. Jacobs. Well, sir, it is difficult to say whether they are working 
under me or with me. We work together down there. 

Mr. Kennedy. How many are there ? 

Mr. Jacobs. There are six, sir. 

Mr. Kennedy. Do you receive any other compensation, directly or 
indirectly, from the union ? 

Mr. Jacobs. Yes. I believe we have an arrangement to receive $600 
a month for office expense for the maintenance of the office which they 
have in Atlanta. 

Mr. Kennedy. $600 a month for that? 

Mr. Jacobs. That is correct, sir. 

Mr. Kennedy. And then on top of that you receive $150 a week as 
the organizational director? 



3368 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Jacobs. That is correct. 

Mr. Kennedy, And $105 per week per diem ? 

Mr. Jacobs. That is right. 

Mr. Ejennedy. And $50 a week as an attorney ? 

Mr. Jacobs. That is right. 

Mr. Ivennedy. And $55 a week as a member of the law firm ? 

Mr. Jacobs. The hiw firm receives $58 a week. 

Mr. Kennedy. $58? 

Mr. Jacobs. That is correct. I don't know how it figures out in the 
final analysis, but the other member of the firm generally gets that, 
I think. 

(At this point, Senator Goldwater withdrew from the hearing 
room.) 

Mr. Kennedy. Do you receive the $150 a week yourself, or does that 
go into some company? How is that arranged? That is the $150 
a week you receive as the organizational director. 

Mr. Jacobs. I receive that, sir. 

Mr. Kennedy. That check is made out to you personally? 

Mr. Jacobs. That is right, sir. 

Mr. Kennedy. Do you have any other financial arrangements with 
the union, other than the ones I have listed ? 

Mr. Jacobs. I don't remember any other one, sir, at this time. If 
there are any — I believe that covers them. 

Senator Mundt. You get $305 a week from the union ? 

Mr. Jacobs. I am sorry. 

Senator Mundt. You get $305 a week from the union, is that right, 
per week, $50 as an attorney, $105 as expenses and $150 a week as 
southern director, to total $305 a week or $15,765 per year? 

Mr. Jacobs. I believe that is correct, that adds up right. 

The Chairman. There is an addition of $58 a week that goes into 
the law firm. 

Senator Mundt. Yes. I am talking about Mr. Jacobs personally 
that gets that amount. Wliatever he shares with his law firm he shares. 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. Are you familiar with the Labor Service Bureau ? 

Mr. Jacobs. Yes, sir. That is an enterprise of my own, sir, that I 
am the owner of. 

Mr. Kennedy. What connection does that have with the union ? 

Mr. Jacobs. Wliat connection ? 

I own it, sir. 

Mr. Kennedy. What is the Labor Service Bureau ? 

Mr. Jacobs. I originally established the Labor Service Bureau in 
the idea of furnishing service to labor unions in negotiations or arbitra- 
tions or matters of information, publications for them and things of 
that kind. I have carried that name on over a period of years. I don't 
know whether you can say that it is active or inactive, but I continue 
to use the name. 

Mr. Kennedy. Does the union pay any money to the Labor Service 
Bureau ? 

Mr. Jacobs. No, sir. 

Mr. Kennedy. Do any unions pay any money to the Labor Service 
Bureau ? 

Mr. Jacobs. Any unions? 

Mr. Kennedy. Yes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3369 

Mr. Jacobs. No, sir. 

Mr. IvENNEDY. What does the Labor Service Bureau do, then ? 

Mr. Jacobs. I said, sir, that at one time I set it up for those purposes. 

Mr. Kennedy. But it doesn't have anything to do with the union 
at this time ? 

Mr. Jacobs. No, sir; I wouldn't say, other than I use it as a trade 
name and I think I still continue to file — I believe when I got social- 
security forms they had that name on over a period of many years, 
and I think I continue to use that in my filing of my tax returns, sir. 

Mr. Kennedy. The money that you receive as southern director ; is 
that filed under Labor Service Bureau rather than your own name ? 

Mr. Jacobs. No, sir. It is filed as Joseph Jacobs trading as Labor 
Service Bureau. 

Mr. Kennedy. "Wliat was the last part ? 
'• ' Mr. Jacobs. Joseph Jacobs trading as Labor Service Bureau. 

Mr. Kennedy. Trading as Labor Service Bureau ? 

Mr. Jacobs. Yes. That is the same thing as registering of a trade 
name where it is not a partnership or a corporation or anything of that 
kind, 

Mr. Kennedy. Do you receive any other compensation other than 
the ones we have listed from the union ? Do you have any other finan- 
cial transactions with the union ? 

Mr. Jacobs. I think I have responded, Mr. Kennedy, that I do not 
remember of any other. I believe that covers it. 

Mr. Kennedy. Do you have an interest in the Auto Leasing Co. ? 

Mr. Jacobs. I own a company that I established in, I believe, 1955, 
called the Auto Leasing Co. 

Mr. Kennedy. They don't have any financial transactions with the 
union ? 

Mr. Jacobs. Yes. The Auto Leasing Co. leases cars. 

Mr. Kennedy. Who do they lease cars to 'i 

Mr. Jacobs. To the United Textile Workers of America. 

Mr. Kennedy. Do you own that company ^ 

Mr. Jacobs. Yes, sir ; I do. 

Mr. Kennedy. And they lease cars ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. What arrangements are made for leasing cars to the 
union ? 

Mr. Jacobs. I believe that the arrangement is by a lease contract 
that was entered into when I established it, sir. 

Mr. Kennedy. Can he identify this, please, Mr. Chairman? 

Senator Curtis. Do you lease cars to anybody else ? 

Mr. Jacobs. At this time, sir, no. We have tried to, but we haven't 
been too successful, because I haven't had too much time to devote to it, 
sir. 

The Chairman. The Chair hands you what purports to be a carbon 
copy of a contract entitled "Automobile Lease," dated the 1st day of 
July 1955, between Auto Leasing Co. and the United Textile Workers 
of America, signed, apparently, by yourself, as lessor for the Auto 
Leasing Co., and by Lloyd Klenert for the United Textile Workers of 
America. 

I ask you to examine it and state if you identify that as a carbon 
copy of the original contract. 

(Document handed to witness.) 



3370 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Jacobs, Yes, sir; that appears to be a carbon copy of the 
original. 

The Chairman. That may be made exhibit No. 49. 

(The docmnent referred to was marked "Exhibit No. 49,'- for refer- 
ence and may be found in the files of the select committee.) 

The Chairman. Exhibit 49 is for reference. 

Mr. Kennedy. You lease these cars to the union, do you ? 

Mr. Jacobs. Tliat is correct, sir. 

Mr. Kennedy. And you make a decision for the union as to whether 
a car will be leased or not ? 

Mr. Jacobs. No, sir. 

Mr. Kennedy. Were bids put out to various companies to find out 
from whom they would lease cars ? 

Mr. Jacobs. As I remember, Mr. Kennedy, the problem of leasing 
cars, or the question of leasing cars, arose a number of years ago on 
the question of the expenses entailed in cars. I was asked, I don't 
remember where the conversation took place, particularly, to investi- 
gate and see the feasibility of it. 

I made an investigation as to costs and the type of arrangement that 
the car rental involved. I checked a number of companies, both 
in the North and other sections of the country, in an effort to ascertain 
what the arrangements might be. 

I then turned the information over to officers of the union, and we 
discussed it. As I recollect, the different arrangements provided for 
different amounts of insurance, or else for paying a certain fee by the 
month and then paying the insurance, and they varied from place to 
place. 

I, therefore, was asked to ascertain if we could find out what it 
would cost to know the rental of the car and, thereafter, just the 
cost of the gas and oil and the maintenance cost, if any. 

I found that that was one of those things that when you went back to 
them, they sort of changed their bids around, so that you had a bid one 
time, or you had an offer of one amount, and it worked out another way. 

For example, you would find a company which would say $80 a 
month for car rental, but then you have to pay the liability or collision 
experience, "We only pay the fire and theft." 

Mr. Kennedy. Is that when you decided because you couldn't get 
a good deal that you decided to form your own auto company? 

Mr. Jacobs. No, sir. 

Mr. Kennedy. Was it shortly afterward ? 

Mr. Jacobs. No, sir. I didn't decide on that basis nor did anyone 
else, that I know of, about a good deal. 

Mr. Kennedy. Was it just a coincidence that you decided you 
wanted to form your own auto-rental company ? 

Mr. Jacobs. No, sir, it was not a coincidence. I shall be glad to tell 
you what happened. 

Mr. Kennedy. Go ahead. 

Mr. Jacobs. After we talked about it several times, I suggested to 
the officials of the union that it might be well to experiment and see 
how it worked out in the rental of cars, to see if it saved the union any 
money. I also told them that I thought that I could arrange to rent 
cars in Atlanta in a method so that it would be possible for us to find 
out. They were agreeable. I drafted a contract which follows almost 
identical language with some of the contracts that I had gotten from 



IMPROPER ACTIVITIES EN THE LABOR FIELD 3371 

other companies. I believe that was about the middle of 1955. They 
then 

Mr. Kennedy. Did you have a company in mind at that time ? 

Ml'. Jacobs. No, sir. I formed the company. 

Mr. Kennedy. You formed the company based on this? 

Mr. Jacobs, Yes, sir. I formed the company and put my money 
into it, sir. 

Mr. Kennedy. When you said you had somebody in mind in Atlanta 
that might be able to do that, you had yourself in mind, is that right? 

Mr. Jacobs. I don't think,, sir, that I liad somebodj- in mind. 

Mr. Kennedy. You said that you thought you could arrange it with 
someone in Atlanta that they wovdd be al)le to get a good deal. 

Mr, Jacobs. Of course, sir, the record speaks for itself, but I don't 
think I said that I could arrange with someone in Atlanta. I said I 
thought I could arrange to do it out of Atlanta. I believe I said that. 

Mr. Kennedy. Do you mean you, personally ? 

Mr. Jacobs. I beg your pardon ? 

Mr. Kennedy. That you personally could arrange to do it out of 
Atlanta ? Is that what you meant ? 

Mr. jAcor.s. Yes. That I could nuike the arrangements out of 
Atlanta to have it done. 

Mr. Kennedy. So you would form your own company and then lease 
the cars back to the union? 

Mr. Jacobs. I did form my own company, sir, and leased them to 
the union. I don't believe that there was any question asked as to how 
the company would be set up or anything else at that time. I am sure 
tliat it wasn't. We were talking in terms of leasing these cars. 

The Chairman. Let me ask you this question: At the time you 
signed this contract, did Mr, Klenert know that you were the sole 
owner of this company ? 

Mr, Jacobs. I don't know whether he did, sir, or not. He may have. 

The Chairman, Since you were signing for the company, the Auto 
Leasing Co., you were also working for the union, you were the one who 
was regularly retained to advise Mr, Klenert regarding union affairs, 
you signed this contract representing another company, a company 
that you owned, I wondered if you gave that information to Mr, 
Klenert. 

Mr. Jacobs. I may very well have, sir. 

The Chairman, Then he knew at the time that you were working 
for the union and that you had formed this company and sold him a 
contract with the union, is that right? 

Mr. Jacobs. I believe, sir, I might say that I think he did, but I 
should also say, sir, that I work for other unions, too. My employ- 
ment is not confined entirely to this union. 

The Chairman. A lawyer usually has more than one client. I un- 
derstand that. 

Mr. Jacobs. Thank heaven for that, sir. 

The Chairman. That does not release him from his obligation to 
a client. 

Mr. Kennedy. Do you lease cars to anyone but this union ? 

Mr. Jacobs. I think I answered the Senate that at this time we do 
not, sir. We have had other inquiry that has come about since we did 
beffin to lease these cars. 



3372 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairmax, This contract is dated July 1955. That is 2 years 
ago. During that time, from the date of that contract, did you lease 
cars to anyone else other than to this union ? 

Mr. Jacobs. No, sir. I said we did not. Nor did I vigorously pursue 
the car-leasing business, because I have so many other things that I 
have been doing. I have other things other than this interest, too, 
as your committee knows, that I have disclosed to them that have noth- 
ing to do with this union or other unions. 

The Chairman. That clears it up. 

Senator McNamara. Mr. Chairman, I have a question. 

The Chairman. Senator McNamara. 

Senator McNamara. I glanced at the lease and it indicates $100 
a month for the Chevrolet. Is that a competitive price in Atlanta? 

Mr. Jacobs. Yes, sir, I believe that it is, compared to the insurance 
amounts that are paid for and the various things that the lessor obli- 
gates, sir. 

Senator McNamara. I would just like to observe, Mr. Chairman, 
from my information that is about 331/^ percent higher than the lease 
of a Chevrolet would be in Detroit. I know nothing of Atlanta. 
That is why I asked the question. 

Mr. Jacobs. I don't know about Detroit, sir. 

Senator McNamara. I happen to know because I had reason to 
make inquiry. ' 

The Chairman. Proceed. 

Mr. Kennedy. How many cars do you have now under lease to the 
union ? 

Mr. Jacobs. Presently? 

Mr. Kennedy. Yes. About 8 or 9 ? 

Mr. Jacobs. Either 8 or 9. 

Mr. Kennedy. So that is $800 or $900 a week, is it ? 

Mr. Jacobs. A month, sir. 

Mr. Kennedy. Eight or nine hundred dollars a month ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. Who handles the insurance? Do you have these 
cars insured? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. Who handles the insurance for the automobiles? 

Mr. Jacobs. Do you mean the insurance company ? 

Mr. Kennedy. Who is the insurance broker ? 

Mr. Jacobs. The Bell Insurance Agency in Houston. 

Mr. Kennedy. Do you know the broker at all ? 

Mr. Jacobs. Certainly, sir. 

Mr. Kennedy. Who is that ? 

Mr. Jacobs. The brokers are the Bell family, the son married my 
kid sister. 

Mr. Kennedy. Is that your brother-in-law ? 

Mr, Jacobs. Yes, sir. 

I might say, sir, that the reason that we bought it from him was 
we sought to find if we could get insurance at a better rate in Atlanta, 
and we originally placed it with some company who promised us a 
better rate, and after they found it was a fleet arrangement they then 
turned around and said that the rate was not correct. They gave us 
a rate that was equal to the same rate that this young man gave us. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3373 

Mr. Kennedy. In connection with Senator McNamara's question, 
did you try to find out from other companies whether they would 
lease cars to the union at a less price than you would ? 

Mr. Jacobs. I think, sir, that I said to you that we checked other 
contracts. 

Mr. Kennedy. Do you have any documents on that ? 

Mr. Jacobs. Your committee was furnished, through its investi- 
gators, those documents. 

Mr. I^NNEDY. The letters that you wrote to other companies ? 

Mr. Jacobs. We furnished them letters in our file and specimen 
contracts that were made available to the investigators so that they 
might see them. 

Mr. Kennedy. We don't have any of those. 

Mr. Jacobs. Mr. Kennedy, I stand on my statement that I made 
available and gave the file with copies of contracts that I had secured 
at that time, sir. 

Mr. Kennedy. And you found that you could do it at a less price 
than any of these other companies ? 

Mr. Jacobs. I did not say that, sir. I said at a comparable price. 

Mr. Kennedy. Mr. Chairman, Mr. Jacobs is primarily being called 
because of his connection with this report that Mr. Meany referred 
to. But we do have this other information in connection with him. 
We have an invesigator that has made a study of some of these auto 
leasing companies. He has some information that I would like to put 
into the record at this time, if we may. 

Mr. Morton Henig. 

The Chairman. Come forward, please, sir. 

(Members present at this point: Senators McClellan, Kennedy, 
McNamara, Mundt, and Curtis.) 

TESTIMONY OF MORTON E. HENIG— Resumed 

The Chairman. You have been previously sworn, in this particular 
investigation, have you not ? 

Mr. Henig. Yes, sir. 

The Chairman. You remain under the same oath. Proceed. 

Mr. Kennedy. Mr. Henig, you made an investigation and study of 
the contracts that exist between Mr. Jacobs' company and the union, 
have you not ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. Have you also made inquiries of other companies 
that will lease automobiles to unions ? 

Mr. Henig. I have. 

Mr. Kennedy. Will you tell us what the results are of your in- 
vestigation ? 

Mr. Henig. I looked through the yellow pages of the phone book 
and picked out a few companies that represent themselves as auto 
leasing companies and called them up. I spoke to them concerning 
the specifications in the contract between the UTW and the Auto 
Leasing Co. and asked them how much they would charge for leasing 
cars on a similar basis. I submitted letters to those parties. I have 
here a letter dated June 17, 1957, from the Capital Driv-Ur-Self Sys- 
tem, which is located in Silver Spring, the owner of which is Mr. 
Charles Hutman. He states as follows : 

89330 — 57 — pt. 9 11 



3374 IMPROPER AcnvrriES in the labor field 

The CHAiRMAisr. These are related to price of rentals up here in 
Washington ? 

Mr. Hexig. Mr. Hutman stated that the price he quotes would apply 
anywhere east of the Mississippi and from Maine to Florida since the 
location is not pertinent to the price that he will charge. 

The Chairman. In other words, there seems to be a general price ? 

Mr. Henig. The same price would apply because if he has to pay 
a little higher to supply the car in a certain locality, when he sells 
the car he will get a little more money for it. 

The Chairman. In other words, there are standard rates through- 
out the country ? 

Mr. Henig. At least east of the Mississippi. He said most of the 
cars rented by this method are east of the Mississippi. 

Mr. Kennedy. Mr. Jacobs' cars are not just being used in 
Atlanta, Ga. ? 

Mr. Henig. No, sir. They are primarily used in the Southern States, 
Atlanta, the Carolinas, where the organizers are. 

He has one car which is leased in New York City to one of the vice 
presidents. Other than that, they are all in the South. 

Mr. Kennedy. Did you find also that he has a car leased to himself? 

]Mr. Henig. Yes, sir. He charges $139 a month for that car, charges 
the union that much money, even though he owns the car. 

The Chairman. Why does he charge $39 a month more than this 
contract calls for ? 

Mr. Henig. It is a little more expensive car, sir. 

The Chairman. A little better car ? 

Mr. Henig. Yes, sir. 

Senator McNamara. Mr. Chairman ? 

The Chairman. Senator McNamara. 

Senator McNamara. Do I understand that the $100 a month for 
a Chevrolet was about what the going rate was in Atlanta? 

Mr. Henig. That is what Mr. Jacobs has, I believe, stated. 

Senator McNamara. I am not interested in what Mr. Jacobs stated. 
I am interested in what you are now stating under oath. 

Mr. Henig. What I have here indicates that a car could be rented 
for about $85 a month, with about the same specifications. 

I can read the letter, or you can make it part of the testimony. 

Senator McNamara. You mean as of now ? 

Mr. Henig. As of now ; yes, sir. 

Senator McNamara. But in 1955, logically they could have been 
rented cheaper ? 

Mr. Henig. Possibly cheaper or for about the same price. 

Senator McNamara. The information I have is that the Long Co., 
in Detroit, who is in the business of renting cars of this class, pri- 
marily Plymouths, did rent them in 1955, late in 1955, for $75 a month, 
and they furnished everything except oil and gas. 

Senator Curtis. Mr." Chairman, I would like to ask one question. 

The Chairman. Senator Curtis ? 

Senator Curtis. What do they furnish, besides the car ? 

Mr. Henig. According to the contract between the auto lease and 
textile workers, the only thing the lessor. Auto Leasing Co., would 
furnish, would be the insurance, the car and the insurance. 

Senator Curtis. 'Who pays the repairs ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3375 

Mr. Henig. I will read from the lease. This is under the section 
maintenance and repair, paragraph 5. 

Lessee — 

that would be the textile union — 

shall at all times keep and maintain the automobiles leased hereunder in proper 
condition to the satisfaction of the lessor, including repairs, servicing and greas- 
ing, and shall furnish where required or refurnish or replace necessary equip- 
ment and accessories for the proper operation and use of such automobiles in- 
cluding tires, tools, and antifreeze solution. Lessor further agrees that except 
in an emergency, automobiles of Chrysler, General Motors, or Ford manufacture 
shall be maintained in repair and serviced in authorized Chrysler, General 
Motors, and Ford service stations, respectively. 

So the lessee, the United Textile Workers of America, would bear 
the cost of full repairs and maintenance. 

Senator Cuetis. In other words, the lessor provides the car and in- 
surance and that is all ? 

Mr. Henig. Yes, sir, that is right. 

The Chairman. Is that a standard contract with respect to the 
others you investigated ? 

Mr. Henig. The people I spoke with usually stated that they would 
supply the car, and that the lessee would normally supply the insur- 
ance in matters like that, because he would usually have a good rela- 
tionship with an insurance broker and might do better or at least feel 
better if he supplied the insurance himself. 

They indicated that it wasn't common to supply the insurance. 

The Chairman. Wliat insurance are we talking about? Fire? 
Theft? 

Mr. Henig. Public liability, collision, fire and theft. 

The Chairman. I beg your pardon ? 

Mr. Henig. That would be public liability, collision, and fire, and 
theft. The normal insurance you would carry on your car. 

I have this one letter, I was referred to, from Mr. Hutman, quotes 
a price of $70 per month without insurance and $15 per montli, more^ 
or less 

The Chairman. How much ? 

Mr. Henig. Another $15 a month, for that he would supplv public 
liability insurance for $300,000 per accident, $100,000 per^ person, 
property damage of $15,000 per accident and fire, tlieft, and collision 
with a standard $50 deductible. He states that it might be more or 
less than $15 per month depending on where the car was being leased 
because the rates vary from locality to locality. That would be a total 
of $85 a month for renting a car of the same type as Mr. Jacob "s firm 
is charging the union $100 a month. 

Senator Curtis. Does it make any difference whether you take it for 
a month or a year or 2 years ? 

Mr. Henig. These rates are all quoted on an 18-month lease, which, 
I believe, is the same length of time that the leases between Auto Leas- 
ing Co. and — or 24,000 miles. Excuse me. 

They were quoted on a price of 18 months or 24,000 miles, which is 
the same as the Auto Leasing Co. lease. 

Mr. Kennedy. Have you another letter ? 

Mr. Henig. Yes, sir. I have a letter from the National Truck 
Rental Co., dated June 18, 1957. They will supply the same tvpe of 
cars, 1957 Chevrolet, 210 models, at $89 a month, which would include 
the insurance. 



3376 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. Is there anything further ? 

Mr. Henig. I also have a letter from the Hertz Corp., indicating 
that they would rent a car for $94.50 a month, which would include 
also normal maintenance on the cars. In other words, the only thing 
that the Hertz Corp. lease would not include would be gasoline, oil, 
or State and local taxes, but it would include everything else, servicing, 
repairs, tires, repairing equipment. 

The Chairman. In other words, they would furnish everything for 
less than $100 a month ? 

Mr. Henig. That is right. $94.50. 

Senator Mundt. Does the Jacobs contract include maintenance? 

Mr. Henig. No, sir. 

The Chairman. Who provides the maintenance under the Jacobs 
contract ? 

Mr. Henig. The lessee. That would be the United Textile Workers 
of America. In practice, I believe it is the organizers who will supply 
the maintenance and be reimbursed, probably, by the union. 

Mr. Kennedy. That is all. 

(Members present at this point: Senators McClellan, Kennedy, 
McNamara, Mundt, and Curtis.) 

TESTIMONY OF JOSEPH JACOBS— Hesumed 

Mr. Kennedy. Have you any comments to make? 

Mr. Jacob :. I beg your pardon ? 

Mr. Kennedy. Do you have any comments to make? 

Mr. Jacobs. The comments I would like to make, sir, if you desire 
one is 

Mr. Kennedy. I am not asking like that. 

Mr. Jacobs. Yes, sir. I would like to make a comment. 

The Chairman. Before you do that, the Chair makes the letters 
that the previous witness testified to and identified exhibit 50-A, B, 
and C. 

(The documents referred to were marked "Exhibits 50-A, B, and 
C" for reference and will be found in the appendix on pp. 3571-3573.) 

The Chairman. Proceed with your statement. 

Mr. Jacobs. I would like to say that you have my income tax, and 
it discloses that in the operation of this business for the year of 1955, 
which was a 6 months' operation, I made less than $100 profit on it. 
I think that in the year 1956 I did not make a thousand dollars profit 
on it. It was $900, based upon my tax return. I should like to also, 
if you do not 

The Chairman. The Chair regrets to interrupt the witness, but 
that is a rollcall vote. The committee will have to stand in recess 
for 15 or 20 minutes, until the Senators can report to the Chamber 
and vote. 

^Thereupon, a recess was taken.) 

(Present at the taking of the recess were: Senators McClellan, 
Kennedy, McNamara, and Curtis.) 

The Chairman. The committee will come to order. 

(Present after the recess were: Senators McClellan, Mundt, and 
Curtis. ) 

The Chairman. Will the witness come forward ? 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3377 

The photographers are reminded that the witness requested no 
pictures. 

Mr. Kennedy. You were telling us about the fact that you wanted 
to make some comment on Mr. Henig's testimony, and you were telling 
us that you did not make any money from this arrangement that you 
had with the union. 

Mr. Jacobs. I think, sir, I was telling you about what my tax return 
showed with respect 

The Chairman. Do you wish to resume your statement, to make a 
further statement as to the testimony ? 

Mr. Jacobs. Please, sir. 

The Chairman. All right. You may. 

Mr. Jacobs. Thank you, sir. 

I should like to say, sir, that at the time that these automobile rent- 
ings were considered, tliat after we tried them out for a period of 
time — I can't remember the exact time now — we compared the costs of 
the cars, and of the 3 it showed that in 2 of the cars it cost the union 
less money. On the third one, the cost was about the same, or com- 
parable to it, sir. And 

Mr. Kennedy. You were telling us that in 1956, you only made how 
much? $900? 

Mr. Jacobs. I believe whatever those figures show, sir. 

Mr. Kennedy. During that period of time, you only had three cans, 
is that right ? 

Mr. Jacobs. Through 1956 ; yes, sir. 

Mr. Kennedy. Now you have nine cars, is that right ? 

Mr. Jacobs. Yes, sir. There are nine. 

Mr. Kennedy You charged, I see, bookkeeping and clerical services 
$600. 

Mr. Jacobs. Yes, sir. We paid that. 

Mr. Kennedy. You spent $600 bookkeeping and clerical services? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. In connection with that ? 

Mr. Jacobs. That is correct, sir. 

Mr. Kennedy. In connection with three cars ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. Who was your bookkeeper ? 

Mr. Jacobs. At that time ? Let me see — that is the period of 1956. 
I think Miss Rosenwald was. 

Mr. Kennedy. Is she any relation to you ? 

Mr. Jacobs. She is my sister-in-law. She was a secretary ; worked 
in my office at that time, and is not there at this time. 

Mr. Kennedy. You have managerial services also for 1956, $600. 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. It cost $600 to manage three cars ? 

Mr. Jacobs. No, sir. The managerial services that we charged for 
was the handling of the placing of the insurance, seeing that if there 
was a wreck — if you permit me, sir — there was a wreck that was in- 
volved in the course of the handling of 1 of those cars, and we had to get 
the car hauled from — I forget the town in Tennessee, but 1 of the men 
driving it hit the side of a bridge and it had to be hauled to the next 
town, and that town didn't have a garage where they could fix it. 

Mr. Kennedy. Doesn't the insurance handle all of that ? 

Mr. Jacobs. No, sir ; they did not, sir. 



3378 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Kennedy. The insurance didn't handle that ? 

Mr. Jacobs. No, sir. We had to arrange to get it over there. We 
finally got it to this place. Then the insurance agent saw it and there 
was some question about the garage that it was gotten to, and the 
insurance company asked that it go to another garage, and that was 
done. Thereafter, in the course 

Mr. Kennedy, Don't you have collision insurance, sir ? 

Mr. Jacobs. Yes, sir. Complete. 

Mr. Kennedy. Collision insurance covers all of those costs. 

Mr. Jacobs. Yes, sir, but there is somebody that had to do that. 

Mr. Kennedy. And you paid him $600 ? 

Mr. Jacobs. No, sir. 

Mr. KJENNEDY. Wlio had to do this for you ? 

Mr. Jacobs. My son in the office did it. 

Mr. Kennedy. Your son? 

Mr. Jacobs. Yes, sir. And if you will let me finish, sir, I will tell 
you what else he did with respect to that. 

In addition to that, he got bids during the latter part of 1956 and 
the early part of 1957 on trying to get insurance for the cars and on 
buying new cars, and seeing what could be done toward establishing 
a further procedure on cars, and on writing new contracts. 

While I am at it, sir, if I may, so that there might be no misunder- 
standing about it, I stated that there was a $600 payment for the office. 
Out of that sir, I paid for the stenographic costs and the regular tele- 
phone service, and there were other office expenses that came out of 
that. I know that I submitted the figures to the investigators so that 
they might check and see whether that or more was used in the opera- 
ion of the office. 

I believe that I also submitted to them figures which indicated that 
the office expenses was in excess of the allowance or the amount which 
was paid to me for the office. I would hesitate to leave the committee 
under the impression that the $600 was a payment which went to my 
pocket, out of which there was no expenditures, sir. 

Mr. Kennedy. Did the same personnel that handled this also han- 
dle the southern directorship for the textile union? 

Mr. Jacobs. I am sorry, I don't follow you. 

Mr. Kennedy. Did the siame personnel that handled these books 
and made these arrangements for you also handle the books and records 
for the union ? 

Mr. Jacobs. We handled no books or records of the union there. 

Mr. Kennedy. Do they do any work for the union? 

Mr. Jacobs. Yes, sir, they would. The secretary might do work 
for the union during the course of her work. 

Mr. Kennedy. That is your sister-in-law? 

Mr. Jacobs. At that time. At this time I have another secretary, 
sir. 

Mr. Kennedy. And then 

Mr. Jacobs. And I had other secretaries during this period of time, 
too, sir. 

Mr. Kennedy. Did you have more than one secretary ? 

Mr. Jacobs. At that time? 

Mr. Kennedy. Yes. 

Mr. Jacobs. Yes, there was a period of time when we did. 

Mr. Kennedy. Two secretaries in the office ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3379 

Mr. Jacobs. Yes. 

Mr. Kennedy. At the same time? 

Mr. Jacobs. Yes. As a matter of fact, there was some clerical work 
that was done in the office where we had 

Mr. Kennedy. For how long a period of time is that ? 

Mr. Jacobs. I am sorry, I can't tell you offhand. If it is of any 
value to the committee, I will be glad to furnish that information to 
you. I made that available along with the other information that I 
made available to the investigators when they were in Atlanta. 

Mr. Kennedy. You don't, Mr. Jacobs, see any conflict of interest 
between you as southern director and being the sole owner of a com- 
pany that is renting cars to the union ? 

Mr. Jacobs. If I felt there was a conflict of interest, Mr. Kennedy, 
I would not have undertaken this, and I would not have borrowed 
money to purchase the additional cars which I did borrow. 

Mr. Kennedy. Now looking back on it, do you see that there is any 
kind of a conflict of interest in what you were doing ? 

Mr. Jacobs. I would say, Mr. Kennedy, to you rather candidly, that 
at the time I established this firm, there was no question in my mind 
but that it was the right thing to do, and it was legitimate. There was 
not effort of concealment. 

I would say to you, sir, that because I have become involved in this 
procedure before this committee, in the light of the allegations or the 
charges or the comments that have been made, that it might cause 
me to reflect and to ponder as to whether I would change my approach 
to it or not. But I have seen nothing, sir, that has been submitted to 
me that shows that I tried to do this union wrong in this respect or take 
$1 from them that was not proper. 

I might say, sir, that I checked some of the exhibits, and I noted 
that there was some variance on some of the contracts. I am sorry I 
don't have the time to go into them. 

I might also comment, sir, that I noted in one of them you have 
the same kind of lang-uage that this type of contract is standard for 
industrial or commercial firms. 

My recollection, sir, is that when I made inquiry in the 1955 period, 
when these companies learned that there were unions involved, the first 
thing that they would ask is, "Well, are these cars used by men who 
may be involved in strike situations or things of that kind?" Then 
they would begin to juggle on rates. 

I notice, sir, that in one of them, for example, that was quoted, they 
say that local taxes in addition have to be paid. That is not one of the 
things that is required in this contract. We pay those taxes, sir. 

Mr. Kennedy. Mr. Chairman, we have a couple of letters here from 
the auto leasing company, and in none of them do I see the signature 
of the witness or his name appearing on them. It is some business 
transaction between the auto leasing company and the United Textile 
Workers of America. 

Mr. Mundt. Is your company incorporated, Mr. Jacobs ? 

Mr. Jacobs. No, sir; it is a trade name. If you will forgive me, I 
think it is myself trading as Auto Leasing Co. 

Senator Mundt. While the counsel is conferring, Mr. Jacobs, I wish 
you would straighten out my thinking a little bit more on the nature 
of your position with UTWA, the southern director. 



3380 IMPROPER ACTIVmES IN THE LABOR FIELD 

You said you did not know in your own mind whether you were 
over the vice presidents, directing their activities, or whether they 
were directing yourself. 

Tell me. No. 1 : Are you elected at a convention or by a local or by 
an association ? 

Mr. Jacobs. No, sir. I am employed by the union. I maintain an 
independent status, sir. I am an employee. I work for the union. 
If they desire 

Senator Mundt. Let me ask you this : Are you appointed from the 
international headquarters ? 

Mr. Jacobs. Yes, sir. 

Senator Mundt. Were you appointed originally by Mr. Klenert ? 

Mr. Jacobs. Mr. Valente originally appointed me. 

Well, sir, originally I represented, as a lawyer, a number of unions. 
I think that thereafter I was a special representative in matters that 
were not legal matters. I believe then I was, I think it was, southeast- 
ern or lower south director of certain States, and, thereafter, south- 
ern director. But in those instances, my appointment in each instance, 
or employment, sir, came from the international president. 

Senator Mundt. In the first instance, then, you were appointed by 
Mr. Valente who was then president of the International IJTWA ? 

Mr. Jacobs. Yes, sir. 

Senator Mundt. And your first appointment apparently was not as 
southern director, but it was something lesser than that ? 

Mr. Jacobs. Yes, sir. 

Senator Mundt. And eventually Mr. Valente appointed you as 
southern director ? 

Mr. Jacobs. I believe a man quit who handled another area and 
they asked me if I would take over that area, sir, and I did. I was 
extended that much. And then as the work extended, additional States 
were added on. As a result, sir, I have one of those heavy workweeks 
that run from 80 hours or greater a week, sir. 

Senator Mundt. Are you appointed for a term of years ? 

Mr. Jacobs. No, sir. 

Senator Mundt. You are just appointed subject to the discretion of 
the international president ? 

Mr. Jacobs. I would say, sir, that my employment is in the same 
fashion that an employer would hire a worker who did not have a 
union contract. It was subject to termination at any time when he 
might be dissatisfied. 

I might also say to you, sir, that I would have it no other way. If 
I can't do the work or the job that ought to be done as a man occupying 
that post, I would not want it any other way. I have been asked many 
times, sir, at conventions that I have attended, why I did not run for 
office, and I have said, without any conjectures that might be drawn 
from it, that I am not a politician, sir, and I didn't want to get in- 
volved in the politics of the local union. 

Senator Mundt. Are you a union member ? 

Mr. Jacobs. Yes, sir. I am a member of the union of the United 
Textile Workers of America. 

Senator Mundt. You are certainly not a textile worker. 

Mr. Jacobs. As an employee of it, I asked if I could join, and they 
permitted it, sir. I am a member and have been a member for a long 
period of time of another union, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3381 

Senator Mundt. But you have no official capacity? You are not 
a member of an executive committee or executive board ? 

Mr. Jacobs. No, sir I sit in on the board meetings, sir. I make re- 
ports to the board meetings. I am subject to their call for advice. 

Senator Mtjndt. How many other employees hold similar posi- 
tions ? Is there a western director, a northern director and an eastern 
director ? 

Mr. Jacobs. There are some other directors ; yes, sir, in other areas. 
Yes, sir. 

Senator Mundt. That have similar positions; sitting in with the 
board ? 

Mr. Jacobs. No, sir. Mine is not quite like those. I believe that 
most of those are elected officials, who are elected at conventions of the 
union. 

Senator Mundt. There is no other director that they have who has 
quite the same unique situation as you have ? You are different? 

Mr. Jacobs. Yes; might I say to you. Senator, that the reason for 
it is that I desire to be in a position that, from time to time, if I could 
represent another union in an isolated case or in other cases, where 
it might take some of my time, I did not want to have an arrangement 
whereby I could not do it, sir. I asked that I be employed on that 
basis. The basis was that as long as I did not neglect the work of 
this union, and took care of it, that I could do it, because I did not want 
to isolate myself to the one union in terms of my law practice, sir. 

Senator Mundt. I want to clear up for myself where you sit at 
this organizational table. Compared to the president, you are in- 
ferior to him ; he is a superior officer to you, is that right ? 

Mr. Jacobs. Yes, sir. 

Senator Mundt. Compared to a vice president, is he superior to you 
or subject to your order or suggestions or counsel, call it what you 
like. 

Mr. Jacobs. That is somewhat difficult to answer. Let me see if 
I can show you why, sir. There are some vice presidents who work 
with me. There are some of them whom I would hesitate to say that 
I give any directions to because of their ability and their years of 
service and so forth. 

There are other men who were organizers who have become vice 
presidents whom I would say that I direct in terms of their work, sir. 
I have no authority, for example, over any other vice president in any 
other area at all. 

But along with these vice presidents, sir, there are other organizers, 
too, on the staff, to whom I give directions, sir. 

Senator Mundt. It seems to me you must have some line of com- 
mand in any organization. You have to know where authority rests. 
You say it rests with the president and then next to the president, I 
suppose, is the executive board. 

But when you get to the vice presidential level and the director 
level, the local union officials have to know who to look to for a final 
word, without going up to the top. 

I am trying to find out to my satisfaction whether or not they look 
to you or to the vice presidents of that area. 

Mr. Jacobs. Let me see if I can put it this way, sir. As far as the 
administration of the work in the South, the handling of affairs of the 



3382 IMPROPER ACTIVmES IN THE LABOR FIELD 

various local unions, I would say that I have the administrative super- 
riority. 

So far as any position on the executive board, for example, these 
men, if they desired, could come to the executive board and say, "We 
want Joe Jacobs fired," and on that board they could vote, along with 
other executive board members, to fire me. 

_ Senator Mundt. And all the vice presidents have a vote on the execu- 
tive board ? 

Mr. Jacobs. Yes, sir, and I don't. 

Senator Mundt. You do not ? 

Mr. Jacobs. No, sir. 

Senator Mundt. You sit there as a counselor or a conferee? 

Mr. Jacobs. I make a report of the southern area. I assist in any 
way that I am called upon. There are times, sir, when I miss portions 
of the board meeting. There may be times when I may not be present 
at a particular session. 

Senator Mundt. Suppose you have a vice president working down 
there who is bad news for the union, who is not much good. Is it part 
of your responsibility to report him ? 

Mr. Jacobs. Yes, sir ; I would. 

Senator Mundt. To the executive board ? 

Mr. Jacobs. Yes, sir. 

Senator Mundt. So in that regard, you would be his superior ? 

Mr. Jacobs. Yes, sir. That is the reason that I said that administra- 
tively you would say that I was, but when it came to the actual func- 
tioning of the board, he is actually the man who could participate in a 
vote to either discharge me or anything else, sir. 

Senator Curtis. Mr. Chairman? 

The Chairman. Senator Curtis. 

Senator Curtis. As southern director, do you contact employers? 

Mr. Jacobs. I am not certain I understand. 

Senator Curtis. When you are performing your duty as a southern 
director of the UTWA do those duties call for dealings with em- 
ployers ? 

Mr. Jacobs. Yes, sir ; in collective bargaining sessions and things of 
that kind. 

Senator Curtis. Is the Labor Service Bureau a trade name, also ? 

Mr. Jacobs. Yes, sir. 

Senator Curtis. So, in reality, it is John Jacobs doing business as 
Labor Service Bureau ? 

Mr. Jacobs. Joseph Jacobs doing business as Labor Service Bureau. 
But that does not enter into any relationship with an employer. 

Senator Curtis. What are the services offered by the Labor Service 
Bureau ? 

Mr. Jacobs. Actually, sir, at this time I would say it is defunct. It 
is a trade name I have used over a period of time in making social- 
security returns and making my income-tax returns and I have just 
continued to use it. It has nothing functional, really. 

Senator Curtis. It has no function? 

Mr. Jacobs. No, sir. 

Senator Curtis. How would you use it in your social-security 
returns ? 

Mr. Jacobs. Well, sir, we had quite a hassle about this some time ago 
where I wanted to change the naming of the social -securit}'' returns 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3383 

and they said I could not do it because the original name was set up 
that way and a number allocated to it. 

They insisted that it be done that way. Of course, I was not going to 
get involved in litigation about it. 

Senator Curtis. Does the Labor Service Bureau have any 
employees ? 

Mr. Jacobs. No, sir. I ran it for a period of time and had a secre- 
tary that we used for it, but it is merely a trade name that has carried 
on. If I dropped it tomorrow, sir, I don't know that its passing would 
be noticed on any basis. 

Senator Curtis. But it was not until recently that social security 
was extended to the self-employed. If this had no employees, how 
would it come under the social-security law in its operation ? 

Mr. Jacobs. It happened, sir, on employer. I filed a return for the 
secretary under that name as an employer and had to make a report as 
an employer under that name and under that number. 

As a result of a talk with them and correspondence, I believe 

Senator Curtis. Let me ask you this : Has the Labor Service Bu- 
reau ever performed any service or conducted any business in its 
existence ? 

Mr. Jacobs. Yes, sir. 

Senator Curtis. "\Miat was the nature of that business or service 
that you performed ? 

Mr. Jacobs. For a period of time we handled arbitrations 

Senator Curtis. Between whom ? 

Mr. Jacobs. And negotiations. Various unions, sir. 

Senator Curtis. Included among those unions was the textile work- 
ers' union ? 

Mr. Jacobs. Yes, sir. 

Senator Curtis. Were you a southern director at that time? 

Mr. Jacobs. I don't think so, sir. 

Senator Curtis. But you were employed by the union in other 
capacities ? 

Mr. Jacobs. I beg your pardon ? 

Senator Curtis. You were employed by the union in other 
capacities ? 

Mr. Jacobs. No, sir. That was the only capacity at that time. 

Senator Curtis. Then this Labor Service Bureau is the oldest con- 
nection that you have with the textile workers ? 

Mr. Jacobs. No, sir. Well, it may be. I just am not certain, because 
this goes back some 15 years or more, I think. It is a little difficult. 

Senator Curtis. In other words, the Labor Service Bureau was 
something originally intended to handle arbitrations and to handle 
matters between employers and employees ? 

Mr. Jacobs. That is right, sir. 

Senator Curtis. Did it collect fees from both ? 

Mr. Jacobs. No, sir. Only from the people whom we represented. 
If there was a charge made, it was made to them, and we have never 
represented an employer. 

Senator Curtis. The Labor Service Bureau did not represent the 
employer? 

Mr. Jacobs. That is right, sir. 

Senator Curtis. Was any part of the charge paid by the employer? 

Mr. Jacobs. I am sorry. I did not hear the questions. 



3384 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. Would the employer pay any part of the charges 
made by the Labor Service Bureau ? 
! Mr. Jacobs. No, sh\ 

Senator Curtis. That is all, Mr. Chairman. 

The Chairman. The Chair would like to inquire of you if there is 
any significance in this fact. I hold in my hand 3 photostatic copies 
of letters apparently taken from the files of the United Textile Work- 
ers of America, together with 3 photostatic copies of checks. The let- 
ters contain a statement of the account, the amount due. 

For instance, January 21, 1957, this letter was addressed to Mr. 
Klenert as secretary-treasurer of the United Textile Workers of 
America, in which you point out there will be $200 due for that month 
for certain cars. 

Another letter is dated January 28, 1957, in which you point out 
the amount due for the coming month in the amount of $872 for cars. 

Another one is for February 26, 1957, showing the amount that will 
be due on March 1 of $1,022. These checks were sent in response, 
apparently, to these letters. 

Do you know why these letters bear no signature ? 

Mr. Jacobs. Will you let me see them ? 

The Chaieman. Yes. 
■ ( The documents were handed to the witness. ) 

The Chairman. You will notice that these letters are signed with 
a typewriter, the Auto Leasing Co., and that is the company which 
made the lease, and which you said you own exclusively. 

I am wondering about handling statements in that fashion. 

Mr. Jacobs. Mr. Chairman, if I may say, I don't sign any bills that 
go out of my office, sir. 

The Chairman. Those are letters. 

Mr. Jacobs. If you will note on this one of January 21, 1957, my 
initials appear. 

The Chairman. Your initials appear in typewriter, "J J." 

Mr. Jacobs. Yes, sir. It may very well be when this was sent out 
that my secretary at that time just sent it out without getting me to 
sign It. 

The Chairman. You have three of them in succession. 

Mr. Jacobs. Yes. Each of them is a bill, actually, and I don't sign 
any bills, that I know of. There is no reason for it, that I know of, 
particularly. 

I might say, sir 

The Chairman. You, being a lawyer, know what I am driving at. 
Does that have any significance in that you were trying to conceal 
your ownership ? 

Mr. Jacobs. No, sir. If you will look at the top of the letter, it says 
60 Central Avenue, Atlanta, Ga., and it has my phone number. 

The Chairman. Your phone number is not your name. 

Mr. Jacobs. No, but everybody knows it is my office. 

The Chairman. They know it is the office of that company. 

Mr. Jacobs. No, they know that that is my office, sir, that I am there. 
There is no attempt to hide anything. 

The Chairman. You mean that is the office where you have all of 
your business, this company and everything else? 

Mr. Jacobs. That is right, sir. It is right there. There is no at- 
tempt to hide it. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3385 

Mr. Kennedy. In one of the letters, you mention your own name, 
do you not ? Do you not say, "Joseph Jacobs" ? 

Mr, Jacobs. No, this says 

Mr. Ivennedy. It is in one of those three letters. 
Mr. Jacobs. Well, this one says : 

We have this day delivered to members of the staff to this date which now 
include Reynolds, Jacobs & Cope, three new automobiles — 

yes, sir. 

The Chairman. That is for yourself ? 

Mr. Jacobs. Yes, sir. But if I remember this, I don't have any 
knowledge of it at all. It may very well be that at the end of the 
month 

Mr. Ivennedy. There is another letter that has your name. 

Mr. Jacobs. May I finish ? 

That at the end of the month, the secretary listed that as the car 
and sent it out. 

The Chairman. I appreciate that. If you are finished I will show 
you another one. 

Mr. Jacobs. Yes, sir. 

The Chairman. Here is a photostatic copy of a reply from the 
union, from Lloyd Klenert, to the Auto Leasing Co., in which a check 
for $300 is enclosed to cover 3 cars. 

This letter is dated January 2. It must be in response to the letter 
that you wrote submitting a bill. 

May I see that letter carrying the February account ? 

Here is where you get a check for $300 dated January 2. I do not 
see any bill here, any letter here — I see. This check and the letter 
referred to is not in response to that. I thought it was. 

I will hand you this photostatic copy of the letter dated January 
2, 1957, which I am advised was found in the files of the union, together 
with a photostatic copy of a check of January 2, 1957. 

There is another thing that may be significant. I notice that Mr. 
Klenert addresses Auto Leasing Co. and then refers to you as "Gentle- 
men." If he knew you owned the company yourself, would he 
address you in the plural that way, do you think ? 

(A document was handed to the witness.) 

Mr. Jacobs. Well, of course, I cannot say what he was thinking. 

The Chairman. I cannot either. I do not know. But we have 
these circumstances here. 

Mr. Jacobs. I should like to say, sir, that I know that there are many 
times that payments have been made, and I am not sure whether this 
is the only one that says "Gentlemen." He may use that as routine. 

The Chairman. He may very well, but since we are inquiring into 
the matter, your explanation of it is desired. 

Mr. Jacobs. That is the only thing I can say. I have no reason 
why he said, "Gentlemen," instead of "Dear Sir," or "Dear Joe," or 
whatever. 

The Chairman. How well did he know you ? Pretty well ? 

Mr. Jacobs. Yes. sir. 

The Chairman, He might say "Dear Joe" ? 

Mr. Jacobs. He might. I have no idea why he said "Gentlemen." 

The Chairman. I do not know, myself. But there are these little 
indications here that might have some significance. 



3386 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Jacobs. Senator, may I assure you that the men who used these 
cars knew that I was the man who was running the business. There 
was no effort of conceahnent at all. 

The Chairman. Just reverse the situation. If you were a lawyer 
looking into this thing and interrogating witnesses, you would not 
have overlooked the opportunity to give the man an opportunity to 
explain, would you ? 

Mr. Jacobs. No, sir. And I want to say that I appreciate your giv- 
ing me that opportunity. Knowing your reputation in your State as 
a lawyer, I am certain that that was the reason it was done. 

The Chairman. Well, sir, it is done to develop the truth as far as 
we can get it from every witness who comes on the stand. 

Those will be made exhibit 51x^, B, C, and D, in order of their date. 

(The documents referred to were marked "Exhibits 51A, B, C, and 
D," for reference and will be found in the appendix on pp. 3574-3581.) 

The Chairman. Proceed. 

Mr. KJENNEDY. Mr. Jacobs, you stated in answer to a question of 
Senator Mundt that you were not an officer of the union, that you were 
not on the board of directors of the union ; is that right ? 

Mr. Jacobs. I am not an executive board member, sir. 

Mr. Kennedy. You are not an executive board member ? 

Mr. Jacobs. No, sir. 

Mr. Kennedy. Do you sit in on their executive board meetings? 

Mr. Jacobs. Yes, sir ; I have said that I do. There are times when 
I may not be present in the course of the meeting because of some other 
things that I may be doing. 

Mr. Kennedy. You take a part in those board meetings, do you? 

Mr. Jacobs. I make reports, sir, or I make suggestions, or I may 
speak from time to time, but I have no vote, sir. 

Mr. Ejinnedy. And you offer resolutions ; do you not ? 

Mr. Jacobs. No, sir ; I never make resolutions. 

Mr. Kennedy. Do you make suggestions on resolutions ? 

Mr. Jacobs. I make suggestions on various matters. "Whether I re- 
member specifically a resolution — it is possible. 

Senator Curtis. Do you sometimes draw up resolutions to carry out 
what the voting members of the council have agreed upon? 

Mr. Jacobs. Yes, I think there have been some in the past that I 
have done that with, too, yes, sir. It might be a matter of some lan- 
guage or something of that kind. 

Senator Mundt. Before we leave these automobile items Mr. Jacobs, 
one of these cars you leased to yourself and it is paid for by the union. 

Mr. Jacobs. Yes, sir. 

Senator Mundt. So that should be added to the income you receive 
from the union. You get $15,765 a year, plus an automobile. 

Mr. Jacobs. Senator, of that $15,000, 1 think maybe you are adding 
on the office expense. I am not sure. 

Senator Mundt. I have added $150 a week, and $50 a week, and 
$105 a week per diem. That made $15,765 per year. 

To that you would have to add the fact that you are, to all intents 
and purposes, given an automobile, given the use of an automobile, 
free of all expenses except operating expense. 

Mr. Jacobs. Mr. Senator, the figure you gave of $15,000 is correct, 
sir. It includes the per diem, and, of course, I have hotel bills and 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3387 

meal expenses wlien I am on the road, and that is a good portion of 
the time. 

Senator Mundt. To that you get the free use of an automobile. 

Mr. Jacobs. Yes, sir. The other arrangement that I had originally 
was that they paid the mileage on my car. In other words, as I rode 
up and down the country. J owned previously another kind of a 
car, and I did not want, if I could, to have to buy another car, because 
1 felt that I was trying to get away, actually, from some of the travel- 
ing in a car. They furnished me this car. I use this in my travel, 
and, of course, for the union work in the same fashion 

Senator Mtjndt. So you get the $15,765 plus an automobile? 

Mr. Jacobs. Yes, sir ; the use of a car. 

Senator Mundt. The use of a car ? 

Mr. Jacobs. Yes, sir. 

Senator Mundt. Do you get a Chevrolet, too, or is yours a little 
better? 

Mr. Jacobs. They are not Chevrolets. They are Fords, actually. 

Senator Mundt. You all have the same kind of cars ? 

It says Chevrolets here. They must have switched companies some- 
place along the line. 

Mr. Jacobs. I think originally they were Chevrolets. They are 
now Fords. 

Mr. Kennedy. Then, Senator, there is the Auto Leasing Co. which 
he has in addition to that. 

Senator Mundt. Yes. 

Mr. Kennedy. That is an income of about $900, or a little over 
$y00 a month, which comes from the union. 

Senator Mundt. Profit or gross ? 

Mr. Kennedy. Gross. 

Mr. Jacobs. That is right. From rentals. 

Mr. Kennedy. Then you have expenses on top of that, do you not, 
Mr. Jacobs, to the union, your expenses on top of that ? 

Mr. Jacobs. I don't follow you. 

Mr. Kennedy. You have expenses in addition to the moneys that 
Senator Mundt discussed which you receive from the union? You 
have expenses on top of that that you charge the union for ? 

The Chairman. In addition to the $105 a month that you testified 
as an allowance that you receive for expenses. 

Mr. Jacobs. The only expense other than that which I am reim- 
bursed for if I have a tax expense, or going out to an airport, the 
payment of that actual travel. In other words, it is a specific expense. 

Mr. Kennedy. What about your organizational expenses in your or- 
ganizational work ? Do you get expenses for those ? 

Mr. Jacobs. Those are reimbursements or particular monej^s for 
particular expenditures. 

Mr. Kennedy. Wliat kind of vouchers do you submit on that? 
Do you submit detailed vouchers as to how you spend the money ? 

Mr. Jacobs. We try to submit detailed vouchers. There are in- 
stances where there is a specific use of it. I would say that in the 
course of a year there are several hundred vouchers that we submit 
based on expenses or bills or things that are incurred on behalf of the 
imion which they may reimburse me for. 



3388 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Do you tell them how you spent the money? Do 
you say, for instance, "I spent a thousand dollars" and then do you 
tell them how you spent the thousand dollars ? 

Mr. Jacobs. We try to. It is not done quite that offhandedly, Mr. 
Kennedy. 

Mr. Kennedy. That is what would b^ disturbing. Do you tell them 
when you spend this money how it was spent, where it has gone ? 

Mr. Jacobs. We not only try to tell them, but we try to use it as 
efficiently and as frugally as we can. We try, in the work that we do, 
to make reasonable expenditures for the particular purpose. 

The Chairman. At this point, the Chair finds something here that 
intrigues him a little. I have four canceled checks with expense vouch- 
ers attached. The expense vouchers are signed by you — no. The 
expense vouchers are signed by Mr. Klenert. Also the checks are 
signed by Mr. Klenert. The four are dated on the same day, February 
16, 1956. I am talking about the expense vouchers. Each voucher is 
dated February 16, 1956. Each check in payment of the vouchers 
is dated February 17, 1956. The checks are in the amount of $217.43, 
$637.29, $487.18, and $159.82. Each one of these checks bears your 
endorsement. I will ask you to examine these checks, also the vouch- 
ers, and state, first, whether you submitted vouchers for these amounts, 
second, whether you received the payment as indicated by the checks, 
and if you can explain how so many vouchers are submitted for the 
same date, with the checks written on the same date, totaling whatever 
they total, and I will get that in a moment. 

While you examine them, the Chair will total them. It seems like 
a pretty big expense account for 1 month. See if you have any recol- 
lection of it. It is for this year. 
(Documents handed to witness.) 

The Chairman. If that is the kind of vouchers for expense ac- 
counts that are submitted, I would like a little explanation of it. The 
4 checks total $2,360.42. 

Mr. Jacobs. Senator, I have five checks, sir. I am not certain 
whether I have gotten an extra one. Might we check and see if these 
are the ones, or do you want that one, too ? 

The Chairman. I want those dated on the 16th. 

I am sorry, I might inadvertently have given you an extra one. 

Mr. Kennedy. Mr. Chairman, I might say that this is over and 
above Mr. Jacobs' regular 

The Chairman. Give me the amounts of those checks. I will total 
them. Those are all dated the same day, and the vouchers dated the 
same day ? 

Mr. Jacobs. Yes, sir, they appear to be the same date. 

The Chairman. Give me the amounts of the checks. 

Mr. Jacobs. $217.43, $637.29, $487.18, $159.82. 

The Chairman. The Chair made a mistake. I got shuffling these 
checks and got one inadvertently. 

Mr. Jacobs. That is why I was not certain I was following you. 

The Chairman. Now we will see what these total. 

Go ahead. 

I will correct the total. 

Mr. Jacobs. Shall I wait on you, sir ? 

The Chairman. No. Go ahead with your explanation. 

Mr. Jacobs. These appear. Senator, to be checks which were sent 
to me. This check in the amount of $217.43 appears to be expenses in 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3389 

the Melrose Hosiery campaif^n in Hioh Point, N. C, where we had 
ail election campaign. I am sorry that I wasn't asked about these 
checks or shown these checks by your investigators when they were 
in Atlanta. I might have been able to, looking into my files, give them 
something closer in terms to dates as to when the elections took place. 

The Chairman. I believe the checks total $1,501.72. 

Mr. Jacobs. Whatever the total is, sir. If they would have asked 
me there, I would have tried to have given them an answer. 

The Chairman. Let me ask you if that is the form of vouchers that 
accompany these checks. 

Mr. Jacobs. These checks usually come with these vouchers, sir, that 
is correct. 

The Chairman. What kind of a voucher or bill do you submit to 
get the checks ? 

Mr. Jacobs. There are times, sir, when in addition to this voucher, 
not in all instances but in many, many instances after this voucher 
is sent in or before it is sent in, I may have sent in, along with my 
report, vouchers either for the full amount of this, or a portion of the 
amount, depending on whether or not it had already been expended, or 
whether or not it was to be expended. 

The Chairman. The point I am making is this : An auditor from 
those checks and the vouchers there attached to them could not tell what 
the checks were for, could he, except that you listed generally that 
you spent it in some area or something like that? It does not show 
what the expenses were, whether it was cab fare, hotel bills, and so 
forth? 

Mr. Jacobs. May I suggest to the Senator this, sir, that while this 
merely shows the location or where it was spent, or the particular loca- 
tion of the campaign that was involved, as I say, if I had been asked 
this where my files were available I am sure that by looking at them I 
could refresh my memory and tell you what portion of this went to 
what. 

Inasmuch as these have odd numbers, I am certain that they cover 
specific expenditures. 

It may very well be, Senator, that there are other vouchers cover- 
ing these items which are attached to the reports that I sent in, to 
weekly reports, along with other vouchers on them, which would in- 
dicate these particular expenditures. I am not sure that that is so, but 
it may very well be. 

Now, sir, on this particular check with reference to Melrose, I 
know, sir, that we had a campaign there, that we had an expenditure 
for sometime that was loss, for some committee people, for committee 
work. We had a number 

Mr. Kennedy. Mr. Jacobs, I don't want to interrupt, but will you 
explain where the money went ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. Who did it go to ? 

Mr. Jacobs. It went to workers in this particular situation. 

Mr. Kennedy. Who got the money ? You submitted other vouchers 
during that period of time, that month. For instance, $330.67, $354.40, 
and we have been able to verify those vouchers. But these vouchers 
have no vertification at all. You just received the money. What did 
you do with the money ? 

89330— 57— pt. 9—12 



3390 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Jacobs. Mr. Kennedy, I was never asked mitil- 



Mr. Kennedy. Now I am asking you. What did you do with the 
money ? 

Mr. Jacobs. I am trying to tell you. This money was given to work- 
ers in this situation. 

Mr. Kennedy. What workers? Who did you give the money to? 

Mr. Jacobs. If you would permit me to get my files on this, and look 
at them, I will try and tell you the exact workers. I couldn't tell 
you 

Mr. Kennedy. Those are the vouchers that the trustees have to 
work from. 

Mr. Jacobs. May I finish ? 

I can't tell you by looking at the naked check 

Mr. Kennedy. Neither can a trustee, then. 

Mr. Jacobs. I cannot tell you by looking at this naked check who 
the particular individuals were, and if I tried to guess at it, I would 
not be doing justice to you or myself. 

Mr. Kennedy. All you have to do, Mr. Jacobs, is say you don't 
know, and cannot tell us. 

Mr. Jacobs. No, sir. For example, I know in this particular sit- 
uation, which is the Enka Lowland situation, we have had either 3 or 
4 organizing campaigns in that situation, and time after time we 
have had committees in there from other plants to assist us. 

Mr. Kennedy. I am sure of that, Mr. Jacobs. You are not answer- 
ing the question. 

If you can't answer it, or say you want to search your files 

Mr. Jacobs. I should appreciate the privilege of searching my files. 

The Chairman. Make a memorandum of those before you leave 
them. Search your files, and send us an affidavit at your earliest con- 
venience, since you are so closely identified with this union, if you 
know or can find out why the union's record does not reflect what those 
expenses were for other than those vouchers that are attached to the 
checks. 

Mr. Jacobs. I lost you. I got the first part, sir ; to find out the facts 
and send you an affidavit. Then I missed the other. 

The Chairman. I said in your affidavit if you can show what it is 
for, do so, and any explanation you can give, since you are very close 
to the union, as to why the union's records do not show anything except 
those vouchers and canceled checks, where the vouchers are that the 
union should have to substantiate the expenditure, 

Mr. Kennedy. I might say, Mr. Chairman, this is all that the trus- 
tees would have to work from when they are reviewing the books and 
records of this union. 

The Chairman. Unless there are other vouchers, records or items in 
there. 

Mr. Kennedy. These are from up here, Mr. Chairman. Anything 
that he has in his records down in Atlanta would be something else. 

Mr. Jacobs. But I might have notes. For example, I started to tell 
you before, but Mr. Kennedy did not permit me to quite complete it, I 
have in my files in the Lowland situation, sir, lists of people who got 
moneys over an extended period of time or shorter period of time, of 
actual payments. 

The Chairman. Do you keep copies of the reports you send in to 
the International Union? 



IMPROPER ACTIVmES IN THE LABOR FIELD 3391 

Mr. Jacobs. Yes, sir. 

The Chairman. If you have copies of reports, you should have 
something on there. 

Mr. Jacobs. They were made available to the committee, sir. 

The Chairman. They say they have not found them. 

Mr. Jacobs. Without getting into a dispute with the committee, 
when they were in my office, they spent a period of some nearly 4 weeks, 
T think, sir, and their primary time that they spent was with the finan- 
cial records of the different things that I had. 

Well, sir, they never did ask me, for example, about a thing of this 
kind. This is the first I have been asked to explain this. 

The Chairman. Did you turn over all your records to them? 

Mr. Jacobs. Yes, sir. 

The Chairman. Have they been turned back to you ? 

Mr. Jacobs. "When you say all my records, there are files, corre- 
spondence files, notation files, campaign files and things like that, that 
they didn't ask for. 

The Chairman. I meant those records pertaining to your connec- 
tion with the union. 

Mr. Jacobs. My financial records; yes, sir. 

The Chairman. All right. Your financial records should contain 
certain vouchers for these, would they not ? 

Mr. Jacobs. No, they might not contain the vouchers there, because 
I would not keep vouchers there. 

The Chairman. Would they have copies of your reports to the 
union ? 

Mr. Jacobs. Yes, sir. 

The Chairman. Copies of your bills you submitted to the union? 

Mr. Jacobs. Yes, sir. 

The Chairman. If they are not in there, we did not get all of it, if 
you still have them. 

Mr. Jacobs. No, I wouldn't have vouchers that I know of, sir. 

The Chairman. You would have copies of statements and reports 
that you sent to the national union, would you not ? 

Mr. Jacobs. Yes, sir. 

The Chairman. Upon which they issued this kind of a voucher, I 
assume, and then mailed you a check. 

Mr. Jacobs. Yes, generally that is correct. 

The Chairman. I would think that would be the way. When you 
send in a bill, you would explain what it was for, and if you have 
receipts for the expenditures that you make, for which you are entitled 
to reimbursement, you either enclose them or identify them so they will 
know what it is. 

Mr. Jacobs. Yes, sir. 

(At this point Senator Kennedy entered the hearing room.) 

The Chairman. You keep some kind of copy of that, I am sure. 

Mr. Jacobs. I have a form where I try to keep a record of it, sir. 

The Chairman. Make an examination of your records and send us 
an affidavit back as to what they reflect when you do examine them. 

Mr. Jacobs. Yes, sir. 

Senator Mundt. Mr, Jacobs, we have established thus far that your 
income from your union connection is $15,765 a year. 

Mr. Jacobs, I am sorry, I couldn't hear that amount. 



3392 QIPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. $15,765 a year direct to you. 

Mr. Jacobs. Yes, sir. 

Senator Mundt. Plus what you share in as part of your law partner- 
ship with that $58 a week retainer, plus whatever you make from the 
Auto Leasing Co. 

Mr. Jacobs. Yes, sir. 

Senator Mundt. Are there any other financial benefits accruing to 
you because of your position as director ? I should add, that your son- 
in-law in Houston, Texas. — I believe your son-in-law 

Mr. Jacobs. No, sir. My brother-in-law. 

Senator Mundt. He shares in the financial transactions, and your 
sister-in-law, or sister — sister-in-law ? 

Mr. Jacobs. She is no longer employed by me. 

Senator Munet. She did share. I am not saying that they are 
wrong about that, but I am pointing out what the family got. And 
your two sons got benefits as managers or directors or watching the 
automobile wreck or something. 

Mr. Jacobs. I think it was tlie same son, sir. 

Senator IVIundt. I am trying to find out whether there were any 
other financial benefits accruing to you or to your family because of 
your relationship with the union. 

Mr. Jacobs. I don't know, sir. I have other interests that have 
nothing to do with this union that I am engaged in. But to my best 
recollection, sir, that is all. 

Senator Mundt. Your son is a partner of the law firm ? 

Mr. Jacobs. Yes, sir. And in independent general practice. 

Senator Mundt. That is not the son, apparently, who was out deal- 
ing with the automobiles ? That must be a younger son or the same yon. 

Mr. Jacobs. No, sir. It was this same son at that time. 

Senator Mundt. You have just one son ? 

Mr. Jacobs. No, sir. I am proud to say that I have three sons. 

Senator Mundt. Are they all connected in the business in one way 
or another ? 

Mr. Jacobs. No, sir. 

Senator Mundt. Just the one son shared in the benefits ? 

Mr. Jacobs. Yes, sir. My other 2 sons, sir, 1 has just finished col- 
lege and is awaiting his Army draft, and my other son, sir, is in med- 
ical school. 

Senator Mundt. Think hard, Mr. Jacobs, and refresh your memory. 
Are there any other financial benefits you get because of your relation- 
ship with the United Textile Workers Union ? 

Mr. Jacobs. I can't remember anything else. 

Senator Mundt. There isn't anything in the nature of insurance 
paid for by the union, of which your family would become the bene- 
ficiary ? 

Mr. Jacobs. There is a 

Senator Mundt. You forgot that ? Tell us about that. 

Mr. Jacobs. When you talk about benefits, I was thinking of weekly 
payments or monthly payments. 

Senator Mundt. I am thinking about the whole picture. Of course, 
an insurance policy paid for by someone else, accruing to your family, 
is a financial benefit. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3393 

Mr. Jacobs. Yes. There is some group insurance that all employees 
get for hospitalization that I participate in. 

Senator Mundt. Hospital insurance. Any other kind of insurance ? 

Mr. Jacobs. There is some kind of a pension plan that they have 
that I would participate in. 

Senator Mundt. Life insurance, perhaps ? 

Mr. Jacobs. ISTo, sir. 

Senator Mundt. Hospital insurance ? 

Mr. Jacobs. I don't know that it is life insurance. It is some kind 
of a pension plan. I am not fully aware — No, I think they bought 
some kind of policy that is supposed to pay after a certain number of 
years of age and service a certain amount. 

Senator Mundt. The records show, Mr. Jacobs, that you are the 
holder of policy No. 361221, a 20-year endowment policy, in the amount 
of $14,391. 

Mr. Jacobs. That is the pension plan arrangement, sir. 

Senator Mundt. Does that mean you get that much per year, 
$14,000? f J y 

Mr. Jacobs. No. As I remember, I think that pension plan arrange- 
ment, if I live to whatever the age, I think it is 60 or 65, is that I would 
get an amount of some $50 or $60, or something, based on the number 
of years that I had worked with the organization. 

Senator Mundt. Most 20-year endownment policies, even though 
they carry pension benefits, also are life benefits, if you die in the in- 
terim. That is, a 20-year endowment policy normally pays to the in- 
sured's beneficiary, in case of death, a lump sum amount. If you 
live it out, you get a smaller amount per month in the way of a pen- 
sion or annuity. 

Mr. Jacobs. I am not sure, but I believe that this policy here would 
pay my widow a certain amount of money over a period of time. I just 
don't know the details. But, again, that, sir, would be based on how 
long I had been with them, I think, or some valuation that they set on 
it. As I remember, the time when pensions were provided, or this 
type of thing was provided, we found that in order to get any kind 
of a pension arrangement, it w^as almost prohibitive in cost to follow 
a pension arrangement like a big company would, and that this was the 
type of policy that could be used by a smaller setu]) to provide some 
kind of pension arrangement. You are right, sir, that I do participate 
in that. If I live that long, or my widow might if I die. 

The Chairman. That evidently costs something in the way of pre- 
mium. Do you pay the premium on it ? 

Mr. Jacobs. No, sir. The union. The union pays that not only for 
myself but for the other employees who are covered by it, sir. That is 
no special arrangement for me. 

The Chairman. In other words, your statement is in effect that 
you get this because of the fact you are a union member. 

Mr. Jacobs. Yes. 

The Chairman. Do you pay dues as a union member ? 

Mr. Jacobs. Yes, sir. 

The Chairman. So you are sharing in a program here, and so forth, 
by reason of the fact that you are a union member ; is that right ? 

Mr. Jacobs. No, sir. 

The Chairman. Or is that a part of the compensation for the work 
that you do? 



3394 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Jacobs. No, sir. The employees of the union, who work for the 
union, share in this. The organizers, the men 

The Chairman. Who pays for this ? 

Mr. Jacobs. The union pays for it. 

The Chairman. In other words, it comes out of union dues ? 

Mr. Jacobs. Yes, sir, just like a company would carry hospitaliza- 
tion insurance on its employees and have a pension plan on its em- 
ployees and its officers at the same time. 

The Chairman. Then you get the benefit. In other words the union 
members provide that benefit by reason of that being paid out of their 
fund, providing that for you and the other selective group that shares 
in that program. 

Mr. Jacobs. Yes, sir. If I remember, sir, at the time this arose, 
we were trying in many plants to persuade employers to give pensions 
to employees. I remember once or twice some of them asked us 
whether we had pension plans and it was a short time after that we 
be^an to say, "Well, if we are asking employers to do it, then as a good 
union, who takes care of its employees, we ought to do that." That 
came at a time I think you gentlemen are aware of, when there was a 
tremendous movement in the companies for pensions. 

Senator Mundt. I am trying to establish total financial receipts 
from the union, benefits. We would have to add to that whatever the 
policy in the amount of $14,391 is worth to your heirs or to you. That 
would be part of the compensation that you receive, part of the money 
that you get, at least, because of your connection with the union ? 

Mr. Jacobs. Yes, sir. It would be the actual premium costs; would 
it not? 

Senator Mundt. Surely. 

Mr. Jacobs. Rather than the total amount. I would not live, sir, 
to see that amount. 

Senator Mundt. It would be whatever the insurance costs the union. 

Mr. Jacobs. That is right. 

Senator Mundt. In talking with Mr. Klenert, he discussed with us 
at some length a rather curious and convenient arrangement that the 
members of the executive board had in making loans to each other with- 
out collateral and without interest. 

As a director, did you share in that convenient loan-making arrange- 
ment? 

Mr. Jacobs. On one occasion, sir. I borrowed some money from the 
union, and I repaid it by having it repaid each week, taken out of 
my check, sir. 

Senator Mundt. But you got it on the basis of no interest and no 
collateral ? 

Mr. Jacobs. Sir, nobody else paid it, paid any interest. If there had 
been interest paid, I would have done so. 

Senator Mundt. I know that. This is the best loaning institution 
of which I have ever heard. 

Mr. Jacobs. Senator, as a matter of fact, though, sir, may I suggest 
to you that we have some employers with whom we deal who brag, 
and rightly so, sir, that they loan money to their employees free and 
without interest, sir. I am certain that their employees appreciate it. 

Senator Mundt. It is a different type situation from having a little 
club that passes on each other's loans. There is no analogy that I can 
find there, Mr. Jacobs, with all due deference to you about an em- 



IMPROPER ACTIVmES EST THE LABOR FIELD 3395 

ployer who loans money to an employee, to help him over a bad time, 
without interest or collateral. That is fine, and that is commendable. 

But that is different from belonging to a club which passes on each 
other's loans and has the arrangement that among themselves there 
will be no collateral and no interest. 

I think as a lawyer you will realize there is not much analogy between 
the two cases. 

Mr. Jacobs. Except this, sir, that I do know of persons in corpora- 
tions, because of my work as attorney representing some of them, who 
have borrowed money from their corporations without interest pay- 
ments, and without charge. 

Senator Mundt. Do you know of any corporations where the board 
of directors loan themselves the corporation's funds without collateral 
and without interest ? If so, I would like to know that. 

Mr. Jacobs. I said, sir, based on my relationship with them as at- 
torney I do know of those. They are not big companies. They are 
small companies in structure. 

Senator Mundt. Well, they might be some family corporations. 

Mr. Jacobs. Yes, sir. Well, there is one that is not family, but 
where they have been close for many, many years. 

Senator Mundt. To get it right out on the table in the open now, 
Mr. Jacobs, as counsel, as well as the director, because you sit in at the 
board of directors meetings, as a lawyer, frequently called upon, I sup- 
pose, for legal advice, and for which you get a legal fee, do you think 
it is good union practice to have the board of directors have the power 
and capacity and engaged in the practice of loaning union money to 
themselves without interest and without collateral ? 

Mr. Jacobs. May I suggest to you, Senator, that at that time, and in 
the climate of that time, I saw nothing improper with it. May I fur- 
ther say to you. Senator 

Senator Mundt. I am asking that as of now, July. 

Mr. Jacobs. Yes, sir. I am going to get to that now. 

I am not trying to evade you. Senator. 

In the light of today, and of the discussion that was held, where, I 
believe, you raised this with Mr. Klenert, there, in my opinion, is a 
different approach that ought to be made, not only with reference to 
loans without collateral or without the payment of interest, but of 
any loans, sir. 

I so state. I so state it to you now, sir, without equivocation. 

Senator Mundt. You associate yourself with what Mr. Klenert told 
us, that he was going to sort of lead a crusade to stop that sort of prac- 
tice? 

Mr. Jacobs. Well, sir, I would hate to say that I have become a 
crusader. 

Senator Mundt. I would not say he was a voluntary crusader. He 
was a little reluctant to crusade, but he said he would. 

Mr. Jacobs. I might say to you, sir, that I was present and did hear 
him. 

Senator Mundt, You would associate yourself with his remarks ? 

Mr. Jacobs. I not only associated myself with his remarks, sir, but 
I spoke on it, if I am correct, maybe officially or unofficially, and I took 
the point of view, and I take the point of view now, sir, that there 
ought to be no loans. 



3396 IMPROPER ACTIVITIES IN THE LABOR FIELD 

In saying that, it is over and beyond, sir, the code of ethics that was 
promulgated by the AFL-CIO, sir. 

Senator Mundt. Now I have an associated question. On reflection, 
do you not think it would be a little bit better from the standpoint of 
union practice generally, if a man in your capacity, instead of owning 
an automobile leasing company, whereby you rent the cars to yourself 
that you use, that you should sort of disentangle yourself from that 
sort of arrangement and if the union in going to provide the rental 
on a car, and I see no reason why they should not, they should go 
through a third party ? 

It seems to me the dues-paying members would sleep a little better at 
night if they did not have this kind of situation. I am not making an 
accusation for wrongdoing, but I want to point out that the oppor- 
tunity for wrongdoing is abundantly present under those kind of 
circumstances. 

Mr. Jacobs. I appreciate your sentiment. Senator, and I also appre- 
ciate your statement about no wrong-doing. I want to say in response 
to that that when this committee first, by conversations that I had with 
investigators, indicated — well, they took the point of view quite strong- 
ly, much more so than you, and said they felt it was wrongdoing. 

I said to them then very frankly that there was none, and I intended 
to look at it again and see. 

I say to you, sir, that I shall. If there is any question, and I say 
this plainly, that any of our members have any feeling or can be sus- 
picious that by this arrangement I am doing anything w^rong, I would 
very well and very quickly put an end to it, sir, even if it meant a 
financial loss in so doing and meant an abrogation of the contract. 

In the work that I do, I come in very close contact with these people, 
the membership. I am talking about the actual membership now. I 
am not talking about sitting in an office. I spend better than half of 
my time making meetings, and meeting with workers and talking with 
them, and they are aware of the fact, many of them, that I do have this 
car, and they are aware, many of them, that I do rent cars to the union. 

Up until this time, sir, nobody has criticized me. This committee 
has, through its investigators. Implicit in your question, sir, might be 
some indication of criticism. 

Senator Mundt. Criticism of the system. I am not criticizing you, 
necessarily. I am criticizing a system whereby a man high up in the 
union has a company which he owns exclusively, whereby he loans the 
automobile which he in turn makes a profit on by renting it through the 
union back to himself. 

It seems it is not altogether wholesome that that situation should be 
encouraged. I am not saying that you have abused it, but I am saying 
that that is a wonderful opportunity for abuse, if you put Tom, Dick, 
and Harry into that kind of operation. 

Mr. Jacobs. I can appreciate that, sir, and I would like to suggest 
that I had hoped that this would result in a profit. I am not certain 
whether it would ultimately or not. 

We had some considerable difficulty in the selling of the other cars. 
When they came off of use for rental, we had some trouble in repairs 
and had some trouble in the sale of them. 

I am not too certain what is going to happen to the car market. I 
want you to know 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3397 

Senator Mundt. A corporation is not an eleemosynary institution. 
You intended to make a profit. That was the purpose. 

Mr. Jacobs. Yes, sir. I do say, though, I will take a look at that 
specific thing j^ou mentioned. 

Senator Mundt. That is all. 

Senator Curtis. When you are attending the meetings of the execu- 
tive board, is it sometimes that you furnish language to put into reso- 
lutions ? 

Mr. Jacobs. Yes, sir. 

Senator Curtis. I assume that is true of other papers, occasionally, 
that they would draw ? 

Mr. Jacobs. Do you mean of the executive board ? 

Senator Curtis. Yes. Or for some officers you would draw papers, 
would you ? 

Mr. Jacobs. At this moment, I can't think of an instance of that, 
sir. 

Senator Curtis. You know about this report that went to the AFL ? 

Mr. Jacobs. Yes, sir. 

The Chairman. We will not be able to finish with the witness this 
afternoon, so the witness will come back tomorrow. 

Before I recess, the 4 checks and the vouchers attached thereto, 
which we exhibited to you a while ago, and upon which you are to 
furnish affidavits after searching your files, those 4 checks and 
vouchers will be made exhibits Nos. 52-A, B, C, and D. 

(The documents referred to were marked "Exhibits Nos. 52-A 
through '52-D" for reference and will be found in the appendix on 
pp. 3582-2589.) 

The Chairman. The committee stands in recess. 

Senator Mundt. Mr. Chairman, are we gaing to have the counsel 
draw up a list of the financial benefits which have been received by 
Mr. Jacobs because of his relations, and also any financial benefits that 
have developed ? 

Could we have it all in the record at one place ? 

Mr. Kennedy. Senator Mundt, there are his sister-in-law, his son 
Julian, his son Leonard, his son Harris, a member of the law firm. 
It is three sons, his sister-in-law, and his brother-in-law handles the 
insurance. 

He receives compensation as the attorney for the union, as southern 
director for the union, as a member of the law firm, as the sole owner 
of Auto Leasing, and he also receives as a recipient of the pension 
plan. 

The Chairman. If there is nothing further, we will return tomor- 
row morning, at 10. 

The committee is now in recess. 

(Whereupon, at 5 : 30 p. m., the hearing in the above-entitled mat- 
ter was recessed, to reconvene the following day at 10 a. m. ) 

(Present at the taking of the recess were Senators McClellan, Mundt, 
and Curtis.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



TUESDAY, JULY 23, 1957 

United States Senate, 
Select Committee on Improper Activities, 

IN the Labor or Management Field, 

Washington, D, C. 
The select committee met at 10 a. m., pursuant to Senate 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. 

Members of the select committee present : Senator John L, McClel- 
lan, Democrat, Arkansas ; Senator Sam J. Ervin, Jr., Democrat, North 
Carolina ; Senator Carl T. Curtis, Republican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel to the select com- 
mittee; Ralph Mills, assistant counsel ; Morton E, Plenig, investigator; 
Alphonse F. Calabrese, investigator ; Ruth Young Watt, chief clerk. 
The Chairman. The committee will be in order. 
(Members of the select committee ]3resent at the convening of the 
session : Senators McClellan and Curtis.) 

The Chairman. Call your next witness, ISIr. Kennedy. 
Mr. Kennedy. Mr. Jacobs. 

TESTIMONY OF JOSEPH JACOBS— Resumed 

Mr. Kennedy. Mr. Jacobs, you are familiar with the report that was 
made to Mr. George Meany, are you not, in January of 1953 ? 

Mr. Jacobs. The report, sir ? 

Mr. Kennedy. Yes, the letter sent to Mr. George Meany. You are 
not familiar with anything in connection with George Meany in 
January ? 

Mr. Jacobs. Mr, Kennedy, I am familiar, and I would like to ask 
the chairman of the committee if he would please ask the photogra- 
phers to confine themselves, according to the rule invoked yesterday. 

The Chairman. I am sorry I did not remind them of it. These two 
photographers were not here, they say. 

All right, gentlemen, do not use those pictures you have made. The 
witness had requested no pictures, and the Chair had so ordered. 

Mr. Jacobs. You are talking, I believe, Mr. Kennedy, about the re- 
port that was made by a subcommittee. It was appointed 

Mr. Kennedy. I am asking you if you are familiar with it. You 
listen to my questions and just answer them. 

Mr. Jacobs. I think that I am familiar with it ; yes, sir. 

3399 



3400 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedt. You know that you are familiar with it, aren't ;^ou ? 

Mr. Jacobs. Certainly. I participated in the investigation of it. 

Mr. Kennedy. Listen to the question, and then answer it, and if 
you have any explanation afterward, that is fine, and we will move 
along, Mr. Jacobs. Just answer the questions. 

Mr. Jacobs. I shall endeavor to do so, sir. 

Mr. Kennedy. You were a member of the subcommittee ? 

Mr. Jacobs. Yes, sir. 

Mr. Kennedy. You were selected from the executive board to be a 
member of the subcommittee ? 

Mr. Jacobs. Well now, sir, I am not a member of the executive board. 
I was selected at that time; I believe my name was proposed or 
someone suggested it. 

Mr. Kennedy. Who suggested your name ? 

Mr. Jacobs. Well now that would be hard to even recollect. My 
impression is that at the time that subcommittee was appointed, some- 
thing was said I believe by Mr. Valente that inasmuch as this was an 
investigation which might involve some questions about him, he 
wanted suggestions for a committee. 

Mr. Kennedy, Who said that ? 

Mr. Jacobs. Mr. Valente, and I couldn't tell you who suggested my 
name. There were a number of names that were suggested at the 
time, and we were thereupon appointed, as I remember it. 

The Chairman. The question primarily was, were you a member 
of the international executive board of the United Textile Workers of 
America, AFL. 

Mr. Jacobs. No, sir. 

The Chairman. You were not a member ? 

Mr. Jacobs. No, sir 

The Chairman. I see. All right. Proceed. 

Mr. Kennedy. How could you be appointed to a subcommittee of the 
executive board if you were not a member of it ? 

Mr. Jacobs. Well, I don't know that it was officially designated as 
a subcommittee of the Executive Board. 

Mr. Kennedy. Let me read you the first thing : 

Pursuant to appointment as a subcommittee of the International Executive 
Board of the United Textile Workers of America, AFL. 

Mr. Jacobs. Well, if it reads that way, I could very well have been 
appointed because I was counsel. They might have asked me to serve 
for that reason. 

Mr. Kennedy. Did Mr. Klenert and Mr. Valente request that you 
serve on that board ? 

Mr. Jacobs. Did they request it ? 

Mr. Kennedy. Yes. 

Mr. Jacobs. I can't recall that they did, sir. 

Mr. Kennedy. You think that they might have suggested that you 
serve on the board ? 

Mr. Jacobs. I don't want to speculate, Mr. Kennedy. My recollec- 
tion is that there were names suggested. 

Mr. Kennedy. Now I am asking you whether Mr. Klenert or Mr. 
Valente suggested that you serve on this board. 

Mr. Jacobs. No, sir, I can't say that they did. I can't remember 
that they did, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3401 

Mr. Kenjn'edy. Do you remember that they did not ? Can you testify 
that thej'' did not ? 

Mr. Jacobs. Mr. Kennedy, this situation occurred 

Mr. Kennedy. I understand when it occurred. 

Mr. Jacobs. If I might continue, sir, about 5 years ago. I just can't 
give you any better recollection than what I have already stated 
to you. 

Mr. Kennedy. You think it is possible that Mr. Klenert and Mr. 
Valente who were under investigation, you think it is possible that they 
might have suggested you as serving on the board that was going 
to investigate them ? 

Mr. Jacobs. Mr. Kennedy, I am not going to speculate. I am trying 
to give you the best recollection that I have and that recollection, sir, 
was that there were some names suggested by the executive council 
members. 

Mr Kennedy. And you do not know who suggested you or how you 
ended up on the board when you were not even a member of the execu- 
tive council ? 

Mr. Jacobs. I can't say who suggested me. I know I ended up on it, 
because when the committee was appointed then, after the suggestions, 
I was on it. 

The Chairman. Let me ask you, who appointed this subcommittee? 

Mr. Jacobs. My recollection was that after these names were sug- 
gested, that Mr. Valente said something to the effect, "Well these men 
then will be the subcommittee." 

The Ciiairjman. Was it his place ? You are their attorney. Was it 
his responsibility to appoint the subcommittee ^ 

Mr. Jacobs. Yes, sir; I would think that it might be, sir. 

The Chairman. He appointed a subcommittee to investigate him- 
self? 

Mr. Jacobs. Yes, sir. 

The Chairman. I see. Although 3^011 were not a member of the coun- 
cil, you got that assignment. 

Mr. Jacobs. Although I wasn't a member of the executive council; 
yes, sir. 

Tlie Chairman. You are not a member of the executive council, and 
notwithstanding that Mr. Valente in appointing a committee to in- 
vestigate himself, appointed you as a member of the committee al- 
though you were not a member of the council. 

Mr. Jacobs. Yes, sir, and after the names had been suggested. 

The Chairman. All right, proceed. 

Mr. Kennedy. It goes on in this report that was submitted ulti- 
mately to Mr. George Meany, "We have conducted a painstaking in- 
vestigation." 

Is that true, that you conducted a painstaking investigation, 

Mr. Jacobs. I believe that we conducted a painstaking investigation, 
sir. 

Mr. Kennedy (reading) : 

In our investigation, we examined letters, public records, statements and certi- 
fied public accountant's reports, and all other material which we were able to 
secure with reference to this matter. 

Is that statement true, also ? 

Mr. Jacobs. Well, sir, now if you are going to pick out parts of the 
report and ask about the particular statements or the particular thing 



3402 IMPROPER ACTIVITIES IN THE LABOR FIELD 

out of context, sir, I am not sure thcat I can ceixQ you the particular 
language and why the language was used. I think if you would per- 
mit me, I would like to tell you what we tried to do, and what we did 
at the time, sir, and how we did it. 

The Chairman. The Chair hands you exhibit No. 47, which is a 
jDhotostatic copy of the report and the letter of transmittal of the re- 
port, so you may follow the language of it as you are interrogated. 

(A document was handed to the witness. ) 

The Chairman. All right, Mr. Counsel. 

Mr. Kennedy. Do you have it there in front of you ? 

Mr. Jacobs. Yes, sir. 

]Mr. Kennedy. Did you want to make some statement about the 
report ? 

Mr. Jacobs. I thought it might be helpful, sir. 

At the time that we made this investigation, the committee sought to 
look at what deeds or records we could find. We talked with Mr. 
Klenert, and we talked with Mr. Valente, and at that time, sir, the in- 
vestigation was made in the light of a number of events which had pre- 
viously occurred. 

For example, it wa,s common knowledge to the committee that Mr. 
Meany back in 1951 had not kept his word with the union. There was 
some discussion 

The Chairman. Mr. Meany had not kept his word with you ? 

Mr. Jacobs. Yes, sir. There was some discussion in the committee 
as to whether or not the charges that he had brought were not based 
upon personal feeling so far as the union was concerned and the officers 
were concerned. That related, sir, to the fact that he had promised 
the officers of the United Textile Workers of America that the Federa- 
tion of Hosiery Workers, who were applying for a charter, which was 
exact with what had been given to the United Textile Workers and 
which had been promised to them — he had promised that they would 
not be permitted to enter into the American Federation of Labor. 

After he had given his solemn w^ord to them, sir, he then turned 
around and at the convention in San Francisco had given them the 
charter, and there had been a scrap on the floor of the convention. 

At that time, those things were talked about. 

Mr. Kennedy. I suggested you were to look into what happened to 
the union's money, and this is all very interesting. 

The Chairman. Let me ask you this : Is there anything in the re- 
port about Meany not keeping his word, and that is one of the reason 
why you made such a report ? 

Mr. Jacobs. No, sir. I am trying to say to you that at the time that 
we met, that we knew of this inciclent, all of us did, the entire execu- 
tive board did. 

The Chairman. In other words, at the time ^ou met, you thought 
the charges were unfounded, and you thought it was just a personal 
matter or grievance on the part of Meany ? 

Mr. Jacobs. No, sir. 

The Chairman. Well what was it ? 

Mr. Jacobs. We felt those charges were based on a bias that he had, 
of personal feeling against us. 

The Chairman. That is exactly what I asked you. 

Mr. Jacobs. No, sir. Because of that, when these officers had gone 
to him and had asked him for money and when he later held this meet- 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3403 

ing with us, sir, and we attended it, and when he made these charges 
and members of the executive board tried to explain to him that what 
had happened was that the money had been set aside so as to prevent 
this new group if they were antagonistic from coming into the organ- 
ization, he wouldn't even listen to them at the time. 

The Chairman. Did they tell him that it had been set aside in per- 
sonal homes they had bought ? 

Mr. Jacobs. He didn't give us a chance to, sir. We tried to. 

The Chairman. You tried to tell him that ? 

Mr. Jacobs. We tried to tell him what it was, and we couldn't even 
get it. He came in, sir, and if I could describe it, he made the charges, 
and he brought a stenotypist in, and when he got through he walked 
off with him. Then he came back once again, and the stenotypist set 
up his machine and out he walked again. 

The Chairman. Was that before this report was made ? 

Mr. Jacobs. It was before the report, sir. 

The Chairman. All right, then, when you made the report, why 
did you not report in there that this money had been laid aside by 
placing it in the purchase price of personal homes. Why did you not 
say that in the report if you wanted him to know it ? 

Mr. Jacobs. We believed at that time, sir, that he already knew it. 
We believed that he knew it at that time. The reason that we believed 
that he knew it was because we were certain that he had been told 
about it. 

The Chairman. Let me ask you, did you find that to be a fact in 
your investigation ? 

Mr. Jacobs. You mean to talk with him about it, sir ? 

The Chairman. Did you find that to be a fact in the course of your 
investigation as a committee, appointed as a subcommittee of the execu- 
tive council ? In the course of your investigation did you find it to be 
a fact that this $57,000 had been used to purchase homes for Mr. Va- 
lente and Mr. Klenert? Did you find that to be a fact in the course 
of your investigation ? 

Mr. Jacobs. We found that the money had been laid aside in tlieir 
homes ; yes, sir. 

The Chairman. Did you report that finding in this report ? 

Mr. Jacobs. I can't remember whether that specific thing is set out 
here or not. i 

The Chairman. See if you can find it in there or not. I wondered 
whether you actually made an accurate report, and, if you did investi- 
gate it, whether you reported the facts as you found them or made 
some other kind of a report. 

Mr. Jacobs. May I say to you, sir, before I look at it, that when we 
made this investigation and we found that the facts that we knew had 
existed were verified, we then made this report, not in the light of 
spelling out specific things, but in the light that this report would 
become public property that could be used by the CIO against our 
union, and by other people against our union, and for that reason it 
was done. 

The Chairman. For that reason, the real facts were concealed? 

Mr. Jacobs. No, sir. 

The Chairman. They were not put in the report. 

Mr. Jacobs. I think that there are a number of facts, sir, that are 
put in the report that indicate that there was no concealment, sir. 



3404 I]VIPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. There were a number left out ? 

Mr. Jacobs. I can't say that there were a number left out for any 
specific reason, except what I have told you, sir, and that is that it 
might not be used against the organization because at that time we 
wore engaged in these organizing campaigns all over the country with 
the CIO, and they had put handbills out in which they had attacked 
us about these houses. We had answered those handbills, and we were 
talking about them in meetings where we had these organizing drives, 
sir, and we didn't want to furnish any more ammunition to them, so 
that they would use them against us. 

The Chairman. I pretty well understand. 

Proceed, Mr. Counsel. 

Mr. Kennedy. Now, going over this report, T would like to ask you 
a few questions about it. 

Did you state in the report anywhere that the $95,000 that was orig- 
inally put up was the exact cost of the 2 houses for Mr. Valente and 
Mr. Klenert ? Did you point that out in the report ? 

Mr. Jacobs. Did we point it out, sir ? 

Mr. Kennedy. Yes. 

Mr. Jacobs. I can't remember that we did. 

Mr. Kennedy. Did you point out in the report that that $95,000 
had been charged to the building fund of the union ? 

Mr. Jacobs. I can't remember that we did, and I would have to ex- 
amine it to see if that specific thing was done. 

Mr. Kennedy. Did you point out the third thing, that $57,000 of 
this $95,000 had originally been used to pay for tlie houses of Mr. 
Valente and Mr. Klenert? 

Mr. Jacobs. I can't recall that that was done. I know that we 
knew at that time that it had been laid aside in the houses, sir. 

Mr. Kennedy. You knew that in the building fund 

Mr. Jacobs. I beg your pardon ? 

Mr. Kennedy. You knew that, originally, $57,000 out of the $95,000 
that had been put up was laid aside in the houses ? 

Mr. Jacobs. We Imow that $57,000 had been laid aside at that time, 
sir ; we knew that. 

Mr. Kennedy. Did you mention that in the report ? 

The Chairman. What record did the union have so that an auditor 
auditing the financial affairs of the union could discover that record, 
and accurately report that the money had been "laid aside" in the per- 
sonal houses of these two officers ? 

Mr. Jacobs. At that time, Mr. Chairman, as I remember it, we 
looked at I guess you call them ledger sheets, which showed where 
there had been entries made for the building, and it showed that the 
deposit had gone out, I believe, and there was an entry showing that 
the deposit had been returned. At that time we also looked to see 
about the entry of the $57,000, and it showed that it had gone out and 
had been returned. Those were the figures that we saw in the ledger 
books, sir. It showed that it had gone out and it was back. 

The Chairman. Let me ask you : Did you find anything in the ledger 
book or any other document or record belonging to the union that 
showed that the money had been laid aside in these two personal homes ? 

(At this point Senator Ervin entered the hearing room.) 

Mr. Jacobs. I couldn't recall, sir, at this time. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3405 

The Chairman. Don't you know you didn't, and there was no such 
record, and never was ? 

Mr. Jacobs. No, sir. The reason I say that is this : It is difficult to 
remember what appeared on tliese sheets tliat we looked at, but my 
general impression was that it showed that the money had gone out 
and had been returned, as those entries are made in various places 
there. 

Mr. KJENNEDY. Wasn't that the charge of Mr. Meany; that the 
money had been taken out and only been returned once he started to 
become interested in this matter ? 

Mr. Jacobs. The charge that I understood from Mr. Meany was 
that he had gotten a false financial report, and that the false financial 
report was an effort, as I understood it, to conceal that these houses 
had been bought with union money. Actually, we found that this 
financial report, or it was our belief at that time, as I remember it, the 
things that had been put in there was the extension of this laying aside 
of the money, and whatever the figures were would show not that it 
was laid aside in houses but used for organizational expenses in carry- 
ing out the device that had been passed by the board for them to do 
it in that fashion in case they had this political fight. 

Mr. Meany, when we tried to talk to him about this situation at 
that meeting, and to tell him that this was the device and this was 
what he saw, wouldn't listen to us. 

The Chairman. Why did you not put that in the report "so he 
would have to read it ? 

Mr. Jacobs. I can't tell you now, sir, why. But I know that at that 
time, when we talked about it, the committee was pretty well convinced 
that, regardless of what we told Mr. Meany, he still wouldn't believe a 
thing that we said. 

The Ciiairmax. Now, that is a test of your representation here. 
You were trying to get to Mr. Meany what the real facts were. You 
said he would not listen to you. You had the meeting. Then yovi 
go out and make this report, and still in the report you do not reflect 
the exact transaction or the transaction that you say you wanted to 
get over to him. Can you explain that ? 

Mr. Jacobs. Yes, sir ; I think that I can. I indicated to you, sir, that 
when we made this report we made it in the light of facts that we had 
known and incidents that some of us had participated in. We had the 
feeling at that time that, regardless of what we tried to tell Mr. ISIeany, 
he would not pay any attention to us. We, therefore, tried to draft a 
report so that it would reflect what we found and not be used against 
the union in these fights that we had then going on with tlie CIO and 
in the conflict we were engaged in over the country in plant after plant 
after plant, where we had these charges thrown against us about these 
houses. 

We tried to set out that these houses had been bought, and how 
they had been bought, and set out what the loans were against them, 
so that it could be seen that there wasn't the tremendous amounts of 
moneys that were running around the country, that had been ]Mit into 
liouses or that houses had been bought in that fashion. 

Mr. Kennedy. Wasn't one of the things that you pointed out in 
connection with that, that there were second trusts on these houses, 
and, therefore, the houses weren't worth as much, the equity was not as 

89330 — 57 — pt. 9—13 



3406 IMPROPER ACTIVITIES IN THE LABOR FIELD 

much as it might have been assumed by Mr. Meany ? Did you not 
point that out in j^our leport ? 

Mr. Jacobs. We may have pointed out that there were trusts on 
the houses. I believe, as I remember it, that we saw some deeds, and 
I think we made some calls to see what the records showed about them. 
I think we may have set it out in the report, sir, as part of it. 

Mr. Kennedy. You set it out for both of tliem, both Klenert and 
Valente, that the second trusts were worth $25,000, and, therefore, 
these houses were not worth as much as Mr. Meany assumed that they 
were. Did j'ou also point out in the report that these second trusts 
were paper transactions, and that they were not, in fact, genuine second 
trusts? 

Mr. Jacobs. Now, Mr. Kennedy, I am trying to remember back at 
that time. 

Mr. Kennedy. Look at your report. Did you point that out ? 

Mr. Jacobs. Just one second. I have the impression, sir, that either 
one or both of those trusts were recorded and were good trusts. 

Mr. Kennedy. Not at the time that the houses were purchased, Mr. 
Jacobs. They were merely paper transactions. 

Mr. Jacobs. Well now, Mr. Kennedy, I don't profess to be an ex- 
pert in real estate transactions in the District of Columbia, but I 
know generally that trusts or second mortgages are often made up at 
the time of sales on properties, and are then used to negotiate the actual 
loan! 

That is a common practice in the District, it is my understanding. 

Mr. Kennedy. You went to quite great pains to point out that these 
houses actually weren't worth as much as Mr. Meany thought that 
they were, and there were second trusts on them and therefore they 
were only worth $10,000 or $12,000 apiece. You did not point out that 
these were merely paper transactions. 

Mr. Jacobs. Mr. Kennedy, my recollection is that we were not trj-- 
ing to point out that they were worth a lot or little. ]My recollection is 
that we set out that there were some deeds that showed there were 
mortgages on them, and there was indebtedness on them, and my recol- 
lection is that there were either first or second trusts on both or maybe 
just on one, and I can't remember. 

Mr. Kennedy. You say on page 4, "Our investigation further dis- 
closed that the total equity in this property is $9,500, and that the 
balance is financed by trusts and by the bank loan mentioned." 

Mr. Jacobs. That wouldn't mean that the property wasn't worth 
the full amount, sir, and it would just mean that the person who had 
bought it had that amount of money actualh^ that would be in it. 

Mr. Kennedy. But you didn't point out at all in there, Mr. Jacobs, 
that the money that had originally been used was union money, and 
that only when Mr. Meany uncovered this, and Mr. Klenert and Mr. 
Valente were anxious to pay the money back, that the second trust 
is used. You didn't point that out at all in your report. 

Mr. Jacobs. I don't know that that is the fact, sir. And I want 
to say, sir, that Mr. Meany did not uncover the fact that there was 
money put in these houses. That was generally know^n. 

Mr. Kennedy. Why didn't you tell him that ? 

Mr. Jacobs. I said, sir, we tried to tell him that m the meeting in 
Septembei", and he walked out. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3407 

Mr. Kennedy. You were there for TO pages of meeting, and you 
talked a great deal, Mr. Jacobs, and you didn't mention it. You talked 
for page after page. 

Mr. Jacobs. Mr. Kennedy, I am not certain how many pages I 
talked, but if you will look at it you will find that about half or three- 
quarters of it was Mr. Meany talking. 

Mr. Kennedy, I think you could have slipped out that they bought 
two houses, and that would only have taken a sentence. 

Mr. Jacobs. I would like to say that I think a lot of us tried to 
say that, or some did say it and the stenotypist didn't get it because 
3 or 4 times he raised his hands up like this, and he said, "I can't get 
this," and then he would put down something of what he had gotten. 

That is the kind of a meeting it was. Then he walked out with 
Mr. Meany. Then he came back in with him, and there were statements 
there, as for example, one of the subcommittee 

Mr. Kennedy. Mr. Jacobs 

Mr. Jacobs. May I continue just 1 second? There was one of the 
members of the subcommittee, and I don't think it is on that record, sir, 
said, "Now I want it to be understood that I am not saying anything 
of that kind here and I don't want the board of the textile council 
to believe that I am being quoted or stated to that effect," or something 
like that. 

In other words, he did not agree with the procedure that was going 
on at that time. 

Mr. Kennedy. Also going over this report, I find that you don't 
mention anyplace in there that there were false afhdavits filed with 
the auditor by Mr. Klenert and Mr. Valente. 

Mr. Jacobs. I can't say, sir, that it does, or that it doesn't. I don't 
remember. 

Mr. Kennedy. Well, it does not. 

The Chairman. Do you remember whether you had that informa- 
tion at the time, or prior to the time that you made your report ? 

Mr. Jacobs. I would say, sir, that generally we knew these facts, 
and I would say, sir, that when we got at this investigation, what Mr. 
Klenert and Mr. Valente told us added very little except the actual 
seeing of the things. 

The general knowledge of it we had known for months. "We knew 
about this money being laid aside in the houses, sir, before this Meany 
thing came in. As a matter of fact, there was some discussion among 
the committee wliether or not Mr. Meany actually didn't ask for these 
statements in order to entrap these people because of his venom against 
them. 

Mr. Kennedy. You concurred, did you, Mr. Jacobs, in the fact • 

The Chairman. I didn't think "entrapment" was part of the pro- 
cedures of labor unions. I thought it was only a part of the procedures 
of this committee. 

Mr. Jacobs. Maybe I used an unfortunate word, sir. If so I regret it. 

The Chairman. That is all right. Proceed. 

Mr. Kennedy. I would like to read you a paragraph on page 3 of 
the report, Mr. Jacobs. 

The couiniittee finds that in keeping with such recommendations, the sums of 
$30,000 and $27,000 were immediately set aside in liquid fashion for such purpose. 

Xow, these funds of $30,000 and $27,000 were set aside in liquid 
fashion ? 



3408 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Jacobs. Well, when you set aside money, it is in pretty liquid 
fashion. 

Mr. Kennedy. Even when you use it to buy two homes, is that 
right? 

Mr. Jacobs. Well now, if you want to say that it isn't liquid, or it 
is solid, it is a question of words. I don't know that we used the 
word "liquid" for any other reason than it occurred to the com- 
mittee as we wrote it. 

Mr. Kennedy. You don't think that Mr. Meany or anybody read- 
ing this report would assume that you had set up a fund of $57,000 
rather than to buy two homes ? 
Mr. Jacobs. A fund ? 

Mr. Kennedy. Yes, an organizational fund for instance. 
Mr. Jacobs. I think if we wanted him to think that, or anybody else 
to think that, we might have used the word "fund" and I don't know 
that we had that in mind. 

Mr. Kennedy. You not only used the word "fund," but you also 
say that this is set aside in liquid fashion, which would indicate that 
the money was available whenever the union wanted the money. 
Mr. Jacobs. I don't follow you on that. 

Mr. Kennedy. Why was it determined that the best place to put 
this money, to set it aside, was in the houses of Mr. Klenert and Mr. 
Valente? 

Mr. Jacobs. I can't tell you why it was done. I know that it was 
done. 

Now. why, I can't say. 

Mr. Kennedy. And the union felt that was the best place, that was 
the safest place to put the money. 

Mr. Jacobs. I think that tlie officers who set it aside there at the 
time felt that that was a good device, or a way of doing it. It is a 
question then of judgment. 

Mr. Kennedy. You concurred in it ? 

The Chairman. Mr. A'alente and Mr. Klenert with the officers who 
set it aside, who felt that way about it. 

Mr. Jacobs. I presume they did, sir, they were the ones who took the 
action of carrying out the board's direction of setting it aside m case 
we had this political fight. 

Mr. Kennedy. You concurred in that ? 

Mr. Jacobs. I don't know whether I was asked to concur at all. I 
know that I found out about it within a short period of time. I wasn't 
asked to concur or not to concur. 
Mr. Kennedy. You did not protest. 

Mr. Jacobs. Well, I think that I may have said at the time, if my 
memory serves me right, and this is something that is away back, 
and I may have asked, "Why did you do it that way?" and they may 
have said, "Well, we figured this way it was hidden away so that it 
wouldn't show or it wouldn't be disclosed, so that the new people that 
were coming in might not say, 'well, what is this going on here ? You 
are welcoming us in and at the same time you are trying to make sure 
that we are not in.' " 

There may have been some discussion like that, and it is difficult 
to remember. This is 5 years or better now, sir. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3409 

Mr. Kennedy. You just felt that pointing this out and letting Mr. 
Meany know in this report would be the wrong thing to do, that this 
money had been used in these homes ? 

Mr. Jacobs. No, sir. 

Mr. Kennedy. Do you describe it rather that the money had been 
set aside in liquid fashion rather than it had been set aside to buy 
houses for Mr. Klenert and Mr. Yalente ? 

Mr. Jacobs. Mr. Kennedy, you might have used other words, and 
other people might have used other words. 

Mr. Kennedy. I think other people might have told the truth, Mr. 
Jacobs. 

Ml'. Jacobs. Mr. Kennedy, I am trying to tell you the truth as I know 
it, sir. 

I think we tried to tell the story in this report as we at that time. 
sir, felt was the story as we understood it and the kind of story that 
was based on what we found and predicated on the background that it 
had come up in, and predicated on the facts as they had developed as 
we had gone along, sir. And when we probed into it at that time we 
were convinced, and we knew then that Mr. Meany knew about the 
homes. We were convinced that he knew about them even before this 
statement had been made to him. He might have been alarmed that 
this was a false statement to him, but as far as we could see this state- 
ment was the implementation of the setting aside of this money, of 
putting it into organization setups so that it would be concealed. 

That is what we saw at that time. 

We were then concerned whether or not the money that had been 
taken out of the organizatioUj whether it was in the organization, and 
whether there was a penny missing. We found that it was back there, 
sir. 

Senator Curtis. Mr. Chairman, 1 would like to ask this : How did 
it happen that this "set-aside" and concealment of funds in the first 
instance Avas for the exact amount that would have been required to 
purchase these 2 houses, to wit, $05,000, if they had not chosen to pur, 
mortgages on them, and that the later amount, to wit, $57,000, was 
the actual amount or in round figures it was required to buy these 
houses if they placed the mortgage or deed of trust on them ? 

All of this talk that this was done for some noble purpose of pro- 
tecting the union's funds, it is a queer coincidence that that "set-aside" 
was in the exact amount needed to secure these homes for these two 
officers. 

Now explain that. 

Mr. Jacobs. With respect, sir, to the original amount that you men- 
tioned, or the first amount of $95,000, if my recollection serves me 
right there was a meeting of the board in which they discussed the 
buying of a building. 

Senator Curtis. I am familiar with that, but I want you to answer 
this question : How did it happen that the amount was the same as 
the total purchase price of the houses ? 

Mr. Jacobs. What I am trying to say to you about the $95,000 is that 
at that time, as I recollect it, there wasn't $95,000 to be paid. I think 
the total of the 2 houses was $95,000, but as I remember there had been 
deposits of $2,000 on that which meant $93,000. It wasn't $95,000 that 
was necessary at all. It was $93,000 that was necessary. 



3410 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. We]] tlie settlement cliarges and a]] came to $95,000, 
or tliereabouts in round figures. 

Mr. Jacobs. I am not certain, sir, tliat I am aware of t]iat. 

Senator Curtis. Now, you wliole explanation as to why tliis was 
done falls on its face because they took out enough money to buy these 
two houses, and so apparently there was a decision to take out and hide 
from some dissident group $95,000. Later on that decision apparently 
was reduced to $57,000, anotlier coincidence that it was the amount 
needed to buy the houses if tlie deeds of trust were put on them. 

Now, do you have any explanation as to why those amounts coin- 
cided with the needs to buy tliese two houses ? 

Mr. Jacobs. If I may, sir, I will try to give you the best explanation 
that I know, based on my knowledge. 

As I indicated to you, sir, these 2 houses at the time that the money 
or the $95,000 was set aside, only required $93,000 in total, and at that 
same time, sir, there were mortgages on them. As I understand it or 
remember, I bel ieve these downpayments or casli payments were made 
1 or '1 months Ijefore tlie money was talcen out for the deposit for a 
building. The mortgages were never removed from tliem. They were 
never taken off. If the mortgages had been removed or if the mort- 
gages liad been talcen off, then tlie most tliat still could have been 
necessary was the $93,000. 

But tliey were never taken off, and if I remember rightly, these w^ere 
mortgages to some financial institutions or insurance companies, or 
sometliing like that. That never was taken off at all. 

Now, with respect to the amount that was set aside, why it was 
$57,000, I am trying to remember how it was set. I do not remember 
any official discussion on that except this, sir, and I will give it to you 
for what it is worth, and maybe the individuals who set it aside can 
give you a better explanation of it : That is, sir, that we talked about 
setting aside some money for this device of using it later politically. 
There was some talk of, and I remember it vaguely, about $100,000. 
Then I remember somebody sa^dng — well, when you see these things 
fuse, when they are so long ago, either at a board meeting or subse- 
quent to it and it is hard to place the place, that we ought to set aside 
so much based on the number of members that w^e had, or the approxi- 
mate number. That was the talk on it. 

Senator Curtis. But the fact is you set aside the amount of money 
needed to buy these homes. In other words, your figure was based upon 
what these two officers would get out of it in these homes and had 
nothing to do with setting aside a given sum for the protection of the 
union or any officers thereof, or any segment thereof. 

Mr. Jacobs. I can say to you honestly, sir, that so far as I know, 
the setting aside at that time had no connection with the fact that that 
same figure was applicable to that same figure. In other words, what 
I am saying to you, sir, is that when that motion was made of setting 
aside this money, I didn't know what the amount was going to be or 
how the amount would be set aside. It was sometime later, not very 
long after that, that I discovered or found or learned that this amount 
had been set aside. I made no specific inquiry at that moment why 
that amount was set aside, because then we were engaged in these 
campaigns. 

Senator Curtis. That was set aside because that was needed for the 
houses, is that not true ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3411 

Mr. Jacobs. "Well, it was the amount that was set aside for them. 
I presume that it was. But I didn't know, nor was there any discus- 
sion in the board meeting that this would be set aside for houses. 

Senator Curtis. And it had already been set aside before this meet- 
ing of May 15, 1952, where they passed the resolution: had it not? 

Mr. Jacobs. You are asking whether I knew about it at that time? 

Senator Curtis. Xo. I am asking whether it had been set aside 
prior to that time. 

Mr. Jacobs. I can't say, because I am not familiar with the dates 
on that, on these things, because it is so far back. 

Senator Curtis. The records establish that fact. 

Now, I am reading from the minutes of the executive council, United 
Textile Workers of America, Hotel Hamilton, "Washington, D. C, 
May 15, 1952, and it says : 

It was further discussed that in order to carry out the plans and policies es- 
tablished at the meeting of the international executive council held in Miami 
Beach, Fla., on April 2.5, 1952, and in order to preserve the political stability and 
financial structure of the United Textile Workers, it would be highly desirable 
that certain funds be segregated to be used for any eventuality which might 
arise out of the acquisition of such large and heretofore antagonistic groups. 

The executive council thereupon, upon motion regularly made by Vice President 
Rebino, and seconded by Vice President Salem, by unanimoue vote authorized 
that a suitable and substantial sum as in the discretion of the president and the 
secretary-treasurer might be necessary for such eventuality, be set aside for that 
purpose, and that such funds be earmarked "organizational funds," and that it 
not appear on any official leport with any other designation. 

Now, were you present in that meeting? 

Mr. Jacobs. "What meeting was that, sir? The date of it. 

Senator Curtis. May 15, 1952. 

Mr. Jacobs. Could you tell me where that one was ? 

Senator Curtis. Hotel Hamilton, Washington, D. C. 

Mr. Jacobs. Yes, I think that I was there. 

Senator Curtis. Did you advise them on this action that was taken 
there ? 

Mr. Jacobs. Not that I can recall, sir ; no, sir. 

Senator Curtis. You did not advise them at all ? 

Mr. Jacobs. No. 

Senator Curtis. Now, as a lawyer. I want to ask you, when certain 
sums be segregated, does that mean to part with possession and title 
of them ? 

Mr. Jacobs. I don't know. 

Senator Curtis. They were instructed to segregate funds. 

Mr. Jacobs. That means set aside. 

Senator Curtis. Does it mean to give it to somebody else? Does 
it mean to surrender title and does it mean to surrender ownership? 

Mr. Jacobs. Well, that might follow it. I just don't know. 

Senator Curtis. You know it wouldn't follow it. 

Mr. Jacobs. Wait a second, sir. I am trying to see if I can follow 
the question that you asked, and that is whether or not if you say, 
"Segregate something," it means to turn loose of it or to lose posses- 
sion of it. It might well be. It might well be. 

Senator Curtis. I don't think so. I don't think so. And in the lan- 
guage of common conversation or business usage or at law, to segre- 
gate your funds does not mean to surrender possession and title of it. 

Mr. Jacobs. Well, of course, again, sir, it is a question of choice of 
words. 



3412 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. I don't think it is. I don't think segregation of 
funds in any sense carries a meaning that you are to give those funds 
to somebody else. 

Mr. Jacobs. \Vhat I was saying, sir, is not a choice of words by you, 
sir, but I was saying it was a question of choice of words as they appear 
in the minutes. Somebody may have used the word "segregate," and 
it was then used in the making of the motion. 

Senator Curtis. Well, the whole thing is pretty flimsy, and I hope 
that the group responsible is not fooling themselves, because they are 
not fooling anybody else. There is no pretense here of having pre- 
served these funds for the union. There are ways that it could have 
been done. Deeds of trust could be taken back to the union and care- 
fully deposited and not put on public record. Outright conveyances 
of the properties could have been executed and delivered and been 
legally binding and returned to the union, and the union chose even 
not to put them on record. 

But no such steps were taken at all. This motion was made 10 days 
after the funds had already gone out of the union. 
Now, I have read your report, this committee of which you were 

chairman, to Mr. Meany 

Mr. Jacobs. I don't believe I was chairman, sir, of that. 
Senator Curtis. You were a member of it ? 
Mr. Jacobs. Yes, I was a member of it. 

Senator Curtis. Now, in this "painstaking investigation" that you 
made, did you find that there were vouchers and checks made labeled 
"for organizational funds," and in the truth and in fact they were not 
used for that. 

Mr. Jacobs. My recollection was that at that time 

Senator Curtis. I mean, did you find that'^ 

Mr. Jacobs. Yes. I am going to try to tell you what we did find, sir. 
My recollection is that at that time that we found there were vouch- 
ers and checks that were labeled "organizing funds" in the amount of 
$57,000 that they said was the amount that was used to set aside and 
that was the same amount which had been later returned in the union 
treasury, the same amount of $57,000. If you will remember, sir, I 
said that we saw as I remember it, the ledger books which showed 
the entries at that time. 

Senator Curtis. Now, as a lawyer, how would you define a "false 
entry" ? 

Mr. Jacobs. That would be an entry that would not be true. 
Senator Curtis. An entry that purports to show facts other than 
what they really were. In this painstaking investigation in your re- 
port, you say, "In our investigation we have examined letters, public 
records, statements, and certified public accountant reports and all 
other material which we were able to secure in this matter." But you 
did not report that you found false entries, did you ? 

Mr. Jacobs. No, sir, and the reason we didn't was this, sir: "We 
remembered and we were aware that when tliis money was supposed 
to have been set aside, that this motion had been made, in the report 
that we made we said that all of the funds of the United Textile 
Workers had been accounted for to us or else that they had been turned 
back or put back in the treasury or was in the treasury of the union 
and that vras a fact at that time. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3413 

The money was in the union treasury at that time. The money that 
they had set aside in calling it organizing funds, was set aside under 
the authority that they had. 

Senator Curtis. Under an authority created after they took the 
funds out. 

Mr. Jacobs. Well, sir, on that I am not aware of the dates. 

Senator Cuktis. You conducted a painstaking investigation did 
you not ? 

Mr. Jacobs. My recollection, sir, is that we looked at the amounts, 
and we may have looked at the dates, and I don't remember if we 
looked to see if the date was the 1st instead of the 10th or the 3d in- 
stead of the 5th. 

Our object, or the things we were looking at were the sums. If the 
sums were missing, like they were charged and if the sums were in 
the houses and if the sums were gone or had been dissipated or thrown 
away, we found that these sums which had been part of the device of 
setting it aside had been returned because of all of the hullabaloo 
that started even before Mr. Meany got into the picture. 

Senator Curtis. You did not report that in your report. You did 
not say that there were funds missing and returned because of all of 
the hullabaloo. 

Mr. Jacobs. No, sir. 

Senator Curtis. And you did not report there were false entries and 
you did not report that this motion made in executive committee was 
made after the funds were taken. 

Mr. Jacobs. False entries, sir, might be false if a person was not 
aware of what the specific thing was, but if those entries are to be 
designated as organizing funds and the men are authorized or told 
to mark it that way, then they are carrying out their instructions on it. 

When we made this report, we were not seeking to make it, sir, I 
thought I had indicated to be used by the CIO in the fight that we had 
with them or by anybody else who were enemies of the organization, to 
beat us over the head with. 

Senator Curtis. Who did these funds belong to ? 

Mr. Jacobs. To the union, sir, and its members and the officers, and 
everybody that belonged to the union. 

Senator Curtis. It belongs to the members, does it not ? 

Mr. Jacobs. Yes, and of course, many of the members are officers. I 
am thinking of officers of local unions, as well as national officers. 

Senator Curtis. It does not belong to the officers of the locals. It 
belongs to union members. 

Mr. Jacobs. By virtue of their membership, it would belong to all 
of them ; yes, sir. 

Senator Curtis. What does this mean in these minutes : 

and that it not appear on any official report with any other designation. 

Mr. Jacobs. If you remember, sir, the purpose of it was to put it 
aside. 

Senator Curtis. And it had been put aside. 

Mr. Jacobs. In the event there was this political problem, if it ap- 
peared in another fashion it could be designated for political purposes 
and it was not being secreted then, and it was not being put away, and 
so if the political necessity arose it would not be used. It would be 
obvious that that is what it was. 



3414 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. ^Y\\o has access to the minutes of the executive 
council ? 

Mr. Jacobs. "\Mio has access to them? 
Senator Curtis. Yes. 

Mr. Jacobs. I would say, and this is based on general knowl- 
edge, sir, that I believe the secretary-treasurer is the man who keeps 
the minutes and the minutes are kept in the office of the union and I 
ATould say that anybody there has access to them. 

Senator Curtis. How about some of these members that have been 
kicked around, and had their money taken from them in such resolu- 
tions passed and entries made in the books contrary to what the facts 
are. Could they see these minutes ? 

Mr. Jacobs. Yes, Senator ; may I show you 

Senator Curtis. Well, now, answer my question. 
Mr. Jacobs. Yes, sir ; and I want to explain how. 
Senator Curtis. Could somebody who works in a textile mill, and 
pays his dues continuously, could he walk in there and see these 
minutes ? 

Mr. Jacobs. They could walk in and see these minutes, these books, 
but at the conventions of the international union there are reports 
made of the finances and of the records of the organization and at 
sometime in the convention there is a statement made that the vouchers 
and the records are available to any member who wants to come up and 
ask any question or make any inspection of them. 

Senator Curtis. Well, then, how could it be secret? This whole 
thing, when one wrong unilateral act is done, it is covered up with 
more, and you pass a resolution authorizing something that has al- 
ready taken place, and it says it is to be kept secret. By your own 
testimony, nobody^ could see this. 

Mr. Jacobs. Yes, sir; that is correct. The likelihood would be a 
rarity that someone would ask for it. 
Senator Curtis. You took that chance ? 
Mr. Jacobs. Yes, sir ; we did take that chance. 
Senator Curtis. That is all. 

The Chairman. I might observe, Senator, that even if a member or 
even if an expert accountant saw that record he would never know that 
$57,000 bought personal homes. The record w^ould not reflect any- 
thing to the members. 

Senator Curtis. No, but the point is, it is a cover-up resolution 
passed after the act. 

The Chairman. A member coming in and looking at the record they 
made of it would never know that it had happened. 

Senator Curtis. My observation here is that the members have not 
had much to do with this union and its financial affairs. 
The Chairman. Are there any further questions ? 
Senator Ervin. Anybody who found out about it would have to be 
an expert in camouflage. 

Mr. Jacobs. I don't want to comment on it other than to say appar- 
ently it was not very much of a camouflage. 

Mr. Kennedy, just on the question we were talking abcut, the 
truthfulness of the report, on that subject is there anywhere in this 
report that you point out that any of the union fund had been used to 
buy personal homes for Mr, Klenert and Mr. Valente ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3415 

Mr. Jacobs. I don't recollect that we used that language, sir. I 
think that we may have discussed the houses, and the money that was 
in the houses, and things of that kind. 

I tried to indicate Mr. Kennedy 

Mr. Kennedy. Is there anything in the report that indicates that 
union funds had been used to buy the homes of Mr. Klenert and Mr. 
Valente? 

Mr. Jacobs. I don't know whether it is, sir, or not. 

Mr. Kennedy. Would you look at the report and answer the ques- 
tions ? 

Mr. Jacobs. May I just complete my answer, and then I will look 

at it? 

I tried to indicate, sir, that when we made that report we had certam 
objectives in mind, and whether that language appears or not, I am 
not aware. 

INIr. Kennedy. Could you look and then answer the question, please? 

Mr. Jacobs. I don't think, sir, that we used the word "houses," but 
it is rather clear if you will look, or at least to me it is, on page 3, and 
I think the second sentence : 

The committee further finds that thereafter when the question arose, that 
such funds had been apparently 

Mr. Kennedy. Where is this ? 

Mr. Jacobs. This is on page 3, the second paragraph, sir, and the 
second sentence. 

The committee further finds that thereafter, when the question arose that such 
funds had apparently been withdrawn from the organization for the private and 
personal use of the president and secretary-treasurer after consultation with 
members of the executive board, the stated amount of money was returned to 
the treasury. 

There we are talking about this money that the talk was going around 
about, had been put into the houses. We mentioned the amount, sir, 
and we say that it was taken out and used for their private and personal 
use. 

Mr. Kennedy. Now, no, you do not. You say it was immediately 
set aside in liquid fashion. Just answer my question. Is there any 
place in this report where it states that union funds had been used to 
buy the personal homes of Mr. Klenert and Mr. Valente ? 

That is all I asked you. 

Mr. Jacobs. I don't think it says that in those words, but right there 
we say 

JNIr. Kennedy. Well, that is not the same thing. 

Mr. Jacobs. We say the charge was being used for their private and 
personal use. 

Senator Curtis. Now, is it your position, that this sentence here 
does convey the meaning that it was used for their private and personal 
use ? 

Mr. Jacobs. I am sorry. I don't follow you, sir. 

Senator Curtis. Would you read my sentence back ? 

(The pending question was read bj^ the reporter.) 

Mr. Jacobs. Well, of course, I can't srj what it would convey to 
someon(i else. 

Senator Curtis. I am talking about you. 



3416 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Jacobs. To me it conveys the meaning that when the charges 
were made or the rumors arose that the money was used for private 
and personal use. 

Senator Curtis. Does it convey the meaning to you that you did 
report that these funds were used for the private and personal use of 
the president and the secretary? 

Mr. Jacobs. No, sir. It does not convey that meaning to me. It 
conveys the meaning to me that when the question arose, that it was 
used for their private and personal use, that they then returned it. 

Senator Curtis. Then, in response to the council's queries, you 
did not report the fact to Mr. Meany that it had been used for their 
private and personal use. 

Mr. Jacobs. As far as reporting to him 

Senator Curtis. Now, answer the question. You just got through 
telling the counsel that you did report the fact that it was used for 
their private and personal use, and you cited this sentence. 

Mr. Jacobs. No, sir. May I differ with you, Senator, but I think 
that Mr. Kennedy asked me where in this report we pointed out that 
the money was put in the houses. He asked me then to read and see if 
there was a statement to that effect. So when I got to this sentence, 
sir, in the reading of it, then I pointed out that this sentence was the 
statement that was made at that time in drafting this report, in which 
we said that when the question arose that the money had been used 
by these men for their own personal or private use, which was the house 
thing, that they immediately returned it. 

This was part of the secretion, and we then went on to explain that 
this ■ 

Senator Curtis. When it is used for personal and private use, is 
that a segregation of funds? 

Mr. Jacobs. No ; it is not a segregation of funds. Senator, but the 
thing about it is that we were not talking there of whether or not they 
were using it or saying that they were using it for their private use. 

We were saying that the question arose or the charges were made 
that they were using it for their personal and private use, and they 
had not done it for that purpose. 

They had done it to set it aside. When that question arose, they 
immediately put it back. 

The Chairman. Let me ask a question there. The charges were 
made that they had used this money in the houses for their personal 
use. Is that what you say? 

Mr. Jacobs. Yes ; that is what we said. We said the question arose. 

The Chairman. Those are charges. You were a committee to in- 
vestigate. Did you make a finding and so report that the money was 
used for the purchase of houses and, therefore, for their personal use, 
or did you completely skip over it and just say a question arose and the 
money was put back? 

Mr. Jacobs. No, sir; we did not skip over it. 

The Chairman. You did not make a finding, and a report on that 
finding as to whether you found the charges true or not. 

You simply said, "\VTien the question arose, the monev was put 
back." 

Mr. Jacobs. We said when the question arose that the use of the 
monev was based on authorities that they had gotten from the organi- 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3417 

zation, that the money had been set aside for the purposes for which 
it was intended to be set aside, and we said that when the question arose 
that this was a wrongful wa}^ of setting it aside or using the money, 
they immediately returned the money to the organization, so that im- 
plication — or there might not be that construction of it. 

The Chairman. It is not a question of the implication. The ques- 
tion is, the charge had been made that the money had been used for 
their personal benefit. 

Mr. Jacobs. That is right, sir. 

The Chairman. But you made no finding on that charge. 

Mr. Jacobs. Yes, sir. 

The Chairman. You simply said the money was put back when the 
question arose. 

Mr. Jacobs. I think that our whole report speaks what our finding is. 

The Chairman. I know, but you take the whole report and it does 
not say anything about the money having been invested in the houses 
and it was not returned until the question arose. 

Mr. Jacobs. Well, sir, of course it is a question of construction of 
that sentence, where we say that when the question arose that they had 
used those funds 

The Chairman. That was the charge against them. 

Mr. Jacobs. Yes ; and then this statement, too, that Mr. Meany talked 
about, Avhich was carrying out the putting of this money aside as part 
of it. That is part of the charge. It is all in one. 

The Chairman. Are there any further questions? 

Senator Ervin. As a matter of fact, the charge amounted to an as- 
sertion that the top-ranking officers of your union had been guilty 
of a breach of trust ; did it not? 

Mr. Jacobs. Yes ; I guess it might be held that. 

Senator Ervin. Well, did you or any other member of the union 
take any steps to find out whether they were actually guilty of a 
breach of trust? 

Mr. Jacobs. Yes, sir ; I think tliat we did in this committee that was 
set up. 

Senator Ervin. What did you do about it? Did you find out 
whether there was a breach of trust ? 

Mr. Jacobs. We did not find out that tliere was a breach of trust, 
no, sir. We found that they had done things that they had been au- 
thorized to do, and many of the facts we knew about before and they 
confirmed them at that time. 

Eenator Ervin. You mean to tell me that they had been authorized 
by that resolution to take and buy houses? 

Mr. Jacobs. No, sir, I am not saying that, sir. That resolution au- 
thorized them to set funds saide for this political exigency if it arose, 
and they used that method of setting it aside. 

Senator Ervin. Well now, do you tell me, as a lawyer, that that reso- 
lution authorized the high ranking officers of the union to set aside the 
funds of the union in their dwelling houses? 

Mr. Jacobs. I think that resolution, if I can remember it, said that 
it was in their discretion as to how they did it. I don't think it speci- 
fied how to do it, and when it was in their discretion they used that as a 
device, sir. 



3418 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Ervin. And the resolution said it would be kept secret, and 
would be carried on the records of the union as "organizational 
funds"? 

Mr. Jacobs. Yes, sir ; that is correct. 

Senator Ervin. Do you tell me as a lawyer, that it is your legal 
opinion that that amounted to an authorization for these officers of 
the union to take the funds of the union and invest them in their 
personal homes for themselves ? ^ 

Mr. Jacobs. No, sir. I am not saying that. I am saying, sir, that 
that authorization was for them to set funds aside for the purpose 
that was stated and to designate it as "organizational funds." That 
authorization said that they could use their discretion, sir, and in 
using their discretion they are the ones who used that device. That 
device was within their discretion. 

Now, whether it was a wise device, and whether it was the same 
device, sir, that I might use or someone else might use, sir, that is an- 
other question. But in following that instruction, it was within their 
discretion. 

Senator Ervin. You tell me it is a discretionary matter for an offi- 
cer of a union when he is told to set aside and segregate certain funds 
as "organizational funds," for him to take them and use them for his 
own personal benefit in the purchase of houses in which to live ? 

Do you tell me that as a lawyer ? 

Mr. Jacobs. Mr. Senator, I am not saying that. What I am say- 

^^^ 

Senator Ervix. That is exactly what you said, that it was a matter 
of discretion with them how they set it aside. 

Mr. Jacobs. I don't want to argue with you, sir, but that resolution 
says that it will be set aside not for organization, but says it will be 
set aside for another purpose, but will be earmarked, "organizational 
funds," and how they set it aside is left to their discretion. 

They set it aside in that fashion. 

Senator Ervin. They did not have any discretion about this. They 
were required to keep it secret and they were required to hide it under 
the name of "organizational funds." There was no discretion about 
that ; was there ? 

Mr. Jacobs. There was no discretion on that, and that was part of 
the resolution. 

Senator Ervin. Do you tell me as a lawyer that you do not consider 
that that would constitute a breach of trust to the members of your 
union ? 

Mr. Jacobs. If they were following out the authority that they had, 
sir, and that is what they deemed they were doing, they could not have 
been making a breach of trust. 

Senator Ervin. You have an "if" there, and it seems to me that 
the "if" is about as big as Stone Mountain. 

Mr. Jacobs. That is pretty bi(r, sir. That is where I live. 

Senator Ervin. I am not asking you that. Leave out the "if" and 
give me your opinion as a lawyer. If somebody would come before 
you and lay before you this state of facts, that has been disclosed here 
and ask your opinion wliether that constituted a breach of trust, what 
would you have told them. 

Mr. Jacobs. That it would not be a breach of trust when they were 
carrying out their authority as they did here. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3419 

Senator Ervin. So you think that they had a perfect legal rigrht and 
were not guilty of any breach of trust when they took the union funds 
and invested them in private homes for themselves. 

Mr. Jacobs. I am not saying, sir, that they invested them in private 
homes. I am saying what they did. They used that as a device in their 
homes to set that money aside. They did not buy their homes with 
that as such, and they used it to set it aside and tliey used it under the 
authority, that it be "organizational funds," under that resolution. 

Senator Ervin. So you are telling me as a lawyer that you consider 
this was perfectly all right and it was duly authorized by the union and 
did not constitute any breach of trust whatever to the members of the 
union. 

Mr. Jacobs. I think that I have said that, sir. 

The Chairman. Are there any other questions ? 

All right, if not the witness may stand aside. 

Call Mr. Charles Emerson. 

Do you solemnly swear that the evidence you shall give before this 
Senate Select Committee shall be the truth, the whole truth, and noth- 
ing but the truth, so help you God ? 

Mr. Emerson. I do. 

TESTIMONY OF CHARLES EMERSON, ACCOMPANIED BY HIS 
COUNSEL, JOSEPH JACOBS 

The Chairman, State your name, place of residence, and your busi- 
ness or occupation. 

Mr. Emerson. Charles Emerson. I live in Winnsboro, S. C. and 
I am a maintenance electrician for the United States Rubber Co. 

Mr. Jacobs. Mr. Emerson has asked me if I would sit with him as his 
counsel, sir. 

The Chairman. Mr. Emerson, you say that you are employed as an 
electrical maintenance worker? 

Mr. Emerson. That is right. 

The Chairman. Are you a member of the textile workers union ? 

Mr. Emerson. I am. 

The Chairman. Do you desire the presence of counsel while you 
testify to advise you regarding your legal rights ? 

Mr. Emerson. I do. 

The Chairman. Have you made a selection of counsel for that pur- 
pose? 

Mr. Emerson. Some couple of weeks ago I asked Mr. Jacobs about 
sitting with me because I had never been here before, and I did not 
know anything about it, and he said that he would help me if he could. 

The Chairman. Mr. Jacobs, do you desire, under the circumstances, 
to appear as counsel for this witness ? 

Mr. Jacobs. Sir, he has asked me to serve as his counsel, and I want 
{ o help him if I can. If the committee raises any question that there 
might be any conflict of interest, I should withdraw. 

The Chairman. I do not know what the witness is going to testify 
to, and I do not know whether there is a conflict of interest or not. 

The Chair likes to grant a witness certainly the very broadest dis- 
cretion in selecting his counsel. I do not want to take that respon- 
sibility for him. But this presents a little peculiar situation, do you 
not think? 



3420 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. -Jacobs. I think it does, sir, and if you indicate that you have- 
any feeling, sir, that there is any impropriety about it, I shall with- 
draw. I have no desire in this investigation to do anything that is 
improper, sir. 

I would like to ask that we invoke the rule again on this photography 
thing, if it please the committee. 

The Chairman. How about the witness? Would you like to have 
your picture taken? 

Mr. Emerson. I think that they have had enough. I am a mainte- 
nance electrician, and I know flashes kill people. 

The Chairman. We do not want any physical tragedies to result 
from these hearings. 

Gentlemen, you will suspend your photography for a while. 

The Chair, unless there is objection, is going to let the witness pro- 
ceed. By doing so, I have no intention of setting any such precedent, 
but in order to expedite this, I think the members of the committee 
can observe what will happen, and what may happen, and if there 
a.ppears to be any tactics that might interfere with the committee's 
proceedings, we can suspend and let the witness get another counsel. 

But in order to move along, I am going to waive any possible im- 
propriety of the situation and proceed. 

Mr. Jacobs. May I state to the chairman that in the event he does 
feel that at any stage of this proceeding, that there is any question 
of conflict or any impropriety, if he will advise me I should be glad 
then to withdraw and make a determination. 

The Chairman. Proceed. 

Mr. I^NNEDY. You say that you are a maintenance electrician? 

Mr. Emerson. That is right. 

Mr. Kennedy. Where do you work ? 

Mr. Emerson. Winnsboro Mills division of the United States Rub- 
ber Co., in Winnsboro, S. C. 

Mr. Kennedy. Do you have anything to do with the United Textile 
Workers of America ? 

Mr. Emerson. I am a member of the union and I am secretary- 
treasurer of mj local union, and I am a trustee of the international 
union. 

Mr. Kennedy. ^Y\^at do those duties as trustee entail ? 

Mr. Emerson. Well, there is a variety of duties. We come into 
Washington and I believe the constitution says at least once a year 
and we usually come in every 3 to 4 months. 

We go over the checks and vouchers of the secretary-treasurer and 
we then make up a report of our findings, of the money that has come 
in, and submit it to the executive council. 

Mr. Kennedy. What experience had you had as an auditor prior 
to doing this ? 

Mr. Emerson. Not any. 

Mr. Kennedy. How many trustees are there ? 

Mr. Emerson. There are three. 

Mr. Kennedy. And you come in how often ? 

Mr. Emerson. Well, we come in every 3 to 4 months. It is usually 
3 or 4 times a year. Sometimes there may be a difference in that, but 
it is usually 3 or 4 times a year. 

Mr. Kennedy. Now, you write up a report, do you, afterward ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3421 

Mr. Emerson. We do. 

Mr. Kennedy. And who writes that report up for you ? 

Mr. Emerson. From our worksheets, we usually have a pretty 
standard thing on this and from our worksheets we write up the re- 
port and get someone in tlie office to type it. On certain occasions, if 
there is a matter of language, we have asked Mr. Jacobs to help us 
if he was around and maybe asked Mr. IGenert to give us the correct 
language for this. 

Mr. Kennedy. You consult with Mr. Klenert or Mr. Jacobs in thfr 
writing of 5^our report ? 

Mr. Emerson. Xot every time, now, but I believe the only times that 
Ave do that is when maybe we submit recommendations or something^ 
like that. 

If we don't submit a recommendation, it is the usual form and we do 
it ourselves. We have a standard form inserted from the beginning. 

Mr. Kennedy. How long have you been a trustee ? 

Mr. Emerson. I believe I related to Mr. Mills it was 1951, but I 
believe it was 1949. 

Mr. Kennedy. About 1949 ? 

Mr. Emerson. I think the records will show it was 1949. I didn't 
remember at the time. 

Mr. Kennedy. How were you appointed as a trustee ? 

Mr. Emerson. I was elected at the executive council meeting and 
that is why I remember it was 1949, in Atlanta, Ga., and that was the 
only one that they have ever held down there. 

Mr. Kennedy. Did you make tlie decision as to who would be tlie 
auditor for the union ? 

Mr. Emerson. No, 

Mr. Kennedy. Had he alreadj' been hired ? 

Mr. Emerson. No: not at that time. There was an auditor or at 
least I didn't have anything to do with it at that time. There was an 
auditor already hired, of course. I went along with the man that 
they had previously hired. 

]\Ir. Kennedy. Who was that ? Were you there when Mr. Jansson 
came? 

Mr. Emerson. I believe Mr. Jansson was there then. I believe he 
was there tlien. 

Mr. Kennedy. Had Mr. Klenert hired Mr. Jansson ? 

Mr. E:mers()n. That I wouldn't know. If he was there at that time, 
I wouldn't know. I presume though, that the procedure that has been 
followed since then, is that on recommendations of A'arious people, the 
trustees hired him, and I presume it was done before that, too. 

Mr. Kennedy. When Jklr. Jansson left the employment of the 
UTWA for a while, and then he was rehired in 1954, who suggested 
Mr. Jansson be returned ? 

Mr. Emerson. I think in consultation with the trustees we asked 
Mr. Klenert if he had any objections, and that was the way it was 
done. 

Mr. Kennedy. Did Mr. Klenert suggest Mr. Jansson at that time? 

Mr. Emerson. I don't know that he actually suggested him, but 
we certainl}^ discussed it with him. 

Mr. Kennedy. Where did you saj' you came from? You came 
from where ? 

80330— 57— pt. 9 14 



3422 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Emerson. Winnsboro, S. C. 

Mr. Kexnedy. How long have you been an electrician? 

Mr. Emerson. Twenty years. 

]Mr. Kennedy. Did you go to school in Winnsboro ? 

]Mr. Emerson. No. I was born in Virginia, and I went to Winns- 
boro, S. C, and I went to work there in July of 1933, 24 years this 
month. 

]Mr. Kennedy. Did you go to school ? 

]Mr. Emerson. In Virginia. 

Mr. Kennedy. Where in Virginia ? 

Mr. Emerson, I believe it was Martinsville, Va., and I went to a 
couple of schools, but due to consolidation, I think Martinsville was 
the last school I went to. 

jSIr. Kennedy. How far along in school did you go ? 

Mr. Emerson. High school. 

Mr. Kennedy. Did you finish high school ? 

]\[r. Emerson. I don't have a diploma, but I went there. 

Mr. Kennedy. When you go through these reports, how do you 
and the other trustees operate, and how do you work, and how do you 
go about making your audit ? 

Mr. Emerson. Making our audit ? 

Mr. Kennedy. Are any of the other trustees auditors ? 

Mr. Emerson. Are they auditors ? 

Mr. Kennedy. Yes. 

Mr. Emerson. No. 

]\rr. Kennedy. Are they accountants ? 

]Mr. Emerson. No ; they are not accountants. 

Mr. Kennedy. How do the three of you go about makins; vour 
audit? 

Mr. Emerson. One of them takes the checks, and I take the stub, 
and the other one takes the vouchers, and they call out the name of 
the check and the amount that is on it, and I check it against the 
stub. 

The name is also there, and jNIrs. Hamme has the vouchers and 
she opens it like that, sitting at her table just like this, and if the 
amount is correct, and there is no question about it, and if it is a 
routine thing, we go right on through. 

Mr. Kennedy. What about travel, for instance? Do you check 
into that to find out whether the person actually made the trip that 
they said they made? 

Mr. EjiERSON. Well, no, we couldn't ask everyone, Mr. Kennedy, did 
he make those trips. If there has never been any question about a 
guy padding his report, we wouldn't question whether a man went to 
Chicago and back. 

Mr. Kennedy. What about these hotels ? Do you ever check to find 
out whether those bills that are submitted are accurate? 

Mr. Emerson. We couldn't check whether they are accurate or not. 
But I think that if it was too extreme, we would notice it. 

Mr. Kennedy. There is no way of checking when the three of you 
are sitting around this table, and you just go over and make sure that 
the tliree amounts are the same, but you never make any independent 
check yourselves, do you ? 

Mr. Emerson. No ; we don't go to the hotel and make independent 
checks. No, we do on some occasions go down to the payouts, and 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3423 

see something like that. This would come up in discussion and we 
open it up and ask what this fellow was doing. 

Mr. Kennedy. Did you ever ask the fellow what he was doing? 

Mr. Emerson. Xo ; either someone on the board or someone in the 
office knows what the guy was there for. If it happens in the South, 
I am 2)retty well aware of where fellows are working. 

Mr. Ivennedy. What about Mr. Klenert or Mr. A alente themselves? 
They verify their own vouchers, do they ? 

Mr. Emerson. Yes. 

Mr. Kennedy. They do that? 

Mr. Emerson. Yes, sir. 

Mr. Kennedy. They are the ones 

Mr. Emerson. Let me get that question again now. 

Mr. Kennedy. When Mr. Klenert or Mr. Yalente — let us take Mr. 
Klenert. When he submits a voucher that he was at the Atlantic 
Hotel, who checks his voucher ? 

Mr. Emerson. In the usual procedure. 

Mr. Kennedy. He checks his own, then? 

Mr. Emerson. No, I wouldn't say that. 

Mr. Kennedy. Prior to coming to you ? 

Mr. Emerson. I imagine he would. He checks his own. 

Mr. Kennedy. He checks his own ? 

Mr. Emerson. I have an idea because they are in the office. 

Mr. Kennedy. Do you know if anybody checks to determine whether 
it is accurate or not ? 

Mr. Emerson. No. 

Mr. Kennedy. What about Mr. Yalente ? Do you know if anybody 
checks to find out whether that is accurate? 

Mr. Emerson. No, they would have no reason to. 

Mr. Kennedy. What if somebody submits a voucher saying, "I spent 
$5,000 in New York City last week?' 

Do you just go through and see that he spent $5,000 ? 

Mr. Emerson. I think that would be unusual and we would certainly 
ask the individual involved. When there are any extremes of that, 
I think we would ask. 

]Mr. Kennedy. Have you ever questioned Mr. Klenert about any 
of his expenses ? 

Mr. Emerson. If we have, I don't recall any specific instance, but 
if we have we got the answer that was satisfactory. 

Mr. Kennedy. You never questioned Mr. Yalente, did you? 

Mr. Emerson. I don't know that we have questioned him about any 
detail. 

Mr. Kennedy. You never questioned Mr. Klenert. have you, about 
any of his vouchers that he submitted ? 

Mr. Emerson. I can't pull out any specific item, but it seems to me 
that we have discussed it with him on'l or 2 occasions, asked him, "What 
was this for?" 

Mr. Kennedy. Do you remember ever discussing that with him ? 

Mr. Emerson. I think we have. 

Mr. Kennedy. Can you give us any instance ? 

Mr. Emerson. Especially around convention times, we would say 
among ourselves, "This is a lot of money ; let's talk with Lloyd about 
it." 

Mr. Kennedy. Did he explain it all ? 



3424 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. Emerson. He did. 

Mr. Kennedy. Have you ever refused any of his vouchers, ever- 
turned them down ? 

Mr. Emerson. Have we ever refused any of them ? No. 
Mr. Ken^nedy. Mr, Valente, did you ever turn any of his down? 
Mr. Em erson. Xo. 

Mr. Kentnedy. Just tell me this: Despite Mr. Jacobs' sitting next 
to you, did you know anything about Auto Leasing, and did you know 
what the arrangements were on that ? 

Mr. Emerson. No, I wouldn't know what the arrangements were- 
on that. We do know we have seen the checks. 
Mr. Kennedy. Did you know Mr. Jacobs owned Auto Leasing ? 
Mr. Emerson. I did. 

Mr. Kennedy. When did you find that out ? 
Mr. Emerson. Probably it has been over a year. 
Mr. Kennedy. You have known for a year ? 
Mr. Emerson. Yes, that he was in charge of it. 
Mr. Kennedy. Did you know that he owned Auto Leasing ? 
Mr. Emerson. I kneAv he was in charge, and I wouldn't say that T 
knew that he owned it, but I knew he was in charge of it. 
Mr. Kennedy. That is all, Mr. Chairman. 
The Chairman. Are there any other questions ? 

Senator Er\t:n. As a matter of fact, the trustees when they made- 
these audits, they looked at the figures on the vouchers, and the figures ^ 
on the checks, and the figures on the check stubs, and if they corre- 
sponded they did not make any further inquiries. 

Mr. Emerson. We did. Senator, if it was anything out of the ordi- 
nary. Let us say if a man's check had been running $200 a week, 
and this week it was $300, then we would look at it. If it wasn't ex- 
plained there, then we might make inquiries about it and we would 
make inquiries to see what was wrong. But it was pretty well routine. 
If it was routine we certainly wouldn't. We look at 2,000 of them 
when we come in. 

Senator Ervin. Thank you. 

The CiiAiRivrAN. Mr. Emerson, let me ask you 2 or 3 questions, be- 
cause there will be some testimony along this line. I am advised. 

Did you ever examine these hotel bills that are submitted by Mr. 
Klenert ? 

Mr. Emerson. Hotel bills submitted to him, you mean? We turn 
them over and look at them ; that is right. I don't say we have ex- 
amined them too closely, but we check them. 

The Chairman. Did you find any brassieres on them ? 
Mr. Emerson. No, I don't think that I found any brassieres on them.. 
The Chairman. Did you find any slips charged to the union? 
Mr. Emerson. If we had, we probably would have asked him, did 
he wear them. 

The Chairman. You would have asked him if he wore the 
brassieres? 

Mr. Emerson. Yes, sir. 
The Chairman. And then approved them? 
Mr. Emerson. Well, I don't know. 

The Chairman. Did you find any radios charged to the union., 
bought while he was at the hotel, and charged to the hotel bill ? 
Mr. Emerson. No. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3425 

The Chairmax. You didn't see anything like that ? 

Mr. Emebson. I don't think so. 

The Chairman. Wouldn't you know ? 

Mr. Emerson. I guess we would. 

The Chairman. If you saw it, would you approve it ? 

Mr. Emerson. It would certainly have to be clarified, that is right. 

The Chairman. It would have to be clarified ? 

Mr. Emerson. Yes, sir. 

The Chairman. Suppose you found a television set charged on the 
"hotel bill. What would you do about that ? 

Mr. Emerson. We would ask them about it. 

The Chairman. Then what would you do ? 

Mr. Emerson. Then in consultation with the other members, I pre- 
sume we would submit it to the executive council. 

The Chairman. What would you do if you found a milk stool and 
golfer's lamp charged to the union? 

Mr. Emerson. I think we would follow the same procedure. 

The Chairman. Did you ever find any of these things ? 

Mr. Emerson. I don't think so. 

The Chairman. Did you ever find any charges like that that were 
improper ? 

Mr. Emerson. Not in that line, I don't think so. 

The Chairman. Would it surprise you to know that during the 
past few 3'ears, that many such items have been charged and that you 
have as an auditor approved it ? 

Mr. Emerson. And it was on the voucher of the hotel bill? 

The Chairman. If you had examined the vouchers ; yes. It was on 
the hotel bill, and I assume they submit their bill, as a voucher. I do 
not know how you operate, and strange things happen, it seems, but 
the proper thing it would seem to me would be that when you allow a 
liotel bill, or whenever he makes up his voucher for the bill he submits, 
lie would attach the hotel bill that he paid. "NMien you pay a hotel 
iDill, they give you a statement and that would be a proper document 
to attach to the claim for payment, for reimbursement. 

Do you have these hotel bills submitted, so you can check them ? 

Mr. Emerson. We do. 

The Chairman. All right; they are submitted to you so you can 
check them ? 

Mr. Emerson. That is right. 

The Chairman. Have you ever found any of these things that I 
have mentioned ? 

Mr. Emerson. We have not. 

The Chairman. Well, would it surprise you to know it is a fact 
that many such things have been charged to the union, and paid by 
dues of union members, with you as a trustee to guard and protect 
their funds ? Would it surprise you to find that is a fact ? 

Mr. Emerson. I think that we would use the procedure that I have 
indicated, if we found that. 

The Chairman. Your procedure is that you have approved of 
everything. You don't want to take the responsibility, do you, for 
approving the spending of union dues in that fashion ? 

Mr. Emerson. I say that I do not, and I don't want to take the re- 
sponsibility of doing it. But we have not run up on those things. 



I 



3426 EVIPROPER ACTIVITIES IN THE LABOR FIELD 

The CHAiRMAisr. Do you think if it has actually happened, they 
have been concealed from you, have they ? 

Mr. Emerson. Well, I would say that we didn't catch them, Senator. 

The Chairman. Frankly, you wouldn't approve of such things,, 
would you ? 

Mr. Emerson. No; if it is not a legitimate expense, we wouldn't 
approve it. 

The Chairman. Would you regard such items as I have mentioned,, 
and others along that line, as legitimate expense for the union mem- 
bers to pay ? 

Mr. Emerson. It would certainly have to be explained in a fashion 
that it would become all right. Just the way you put it, no. 

The Chairman. I didn't think that you would. I am just pointing 
this up, at this time, by asking you these questions, not to reflect upon 
your integrity but primarily to show the system that is in operation 
in this union, and the inefficiency of it, and the imposition that has 
been made as the testimony I am advised will show — the imposition 
that has been made against the union members by this kind of ex- 
penditure of their dues. 

I don't think that you would approve it if you knew it, and if they 
have been able to do these things, and you haven't caught it, then 
wouldn't you agree with me that there is room for some improvement 
in the auditing system ? 

Mr. Emerson. There is always room for improvement. 

The Chairman. There would be room for considerable improve- 
ment, if these things are going on ; would that not be true ? 

Mr. Emerson. In consultation with our CPA, we have asked for 
improvements. And I think made recommendations to the board. I 
think we have made recommendations to the board, and I don't remem- 
ber the specific language, that Klenert hire experts to show improve- 
ments in our bookkeeping system. 

The Chair^iax. You may have made such recommendations, and I 
don't know whether they hired them or not. How long ago were those 
recommendations made ? 

Mr. Emerson. It would be recently. 

The Chairman. This week ? 

Mr. Emerson. I believe the board acted on it this week. We made 
the recommendations later on, and most of the recommendations that 
we discussed with Mr. Klenert at the time — it wasn't last week ; it was 
some time back — put in administratively. Then they were acted on by 
the board. 

The Chairman. It was after this investigation got underway. 

Mr, Emerson. It was before any of the investigators came to me. 

The Chairman. Is there anything further, gentlemen ? 

Thank you. You may stand aside. 

Mr. Kennedy. We have an affidavit that we can put in. 

Tiie Chairman. The committee has an affidavit Avhich may be read 
into the record at this time. 

Mr. Kennedy. It is from another trustee, Mr. Chairman: 

Affidavit 

I, E. Henrietta Hamme, make the following voluntary statement to Ralph W. 
Mills and IMorton E. Henig. I have been told by Ralph Mills, and understand, 
that my stal;ement will be used in testimony for the sworn record of the United 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3427 

States Senate Select Committee on Improper Activities in tlie Labor or Manage- 
ment Field. 

I have been one of the three international trustees of the United Textile 
Workers of America, AFL, since my election to that job at the August 1954 union 
convention. The other two trustees have served much longer than I. 

My duty as a trustee consists of examining the vouchers, or bills, which support 
the expenditures of the international. Trustee Albert Drouin examines the can- 
celed checks and Trustee Charles Emerson looks at the check stubs. Other than 
this examination, the trustees rely upon the audit reports of the union's certified 
public accountant. We make our examination whenever the international secre- 
tary-treasurer, Lloyd Klenert, notifies us to come in and do so. We spend 2 or 3 
days on this task. 

Although I am the newest trustee, I handle the vouchers. I do this job because 
a lady's hands are more nimble than a man's in opening vouchers. 

Sometimes we may question an item. When we do, Mr. Drouin or Mr. Emer- 
son asks Helen LaPlaca of the international office staff, and she explains the ex- 
pense to them and they tell me. When the trustees know there is an organiza- 
tional device in an area, we usually approve expenditures charged to that drive 
even where the voucher is not in detail. We know that an organizational drive 
takes money. 

I have met with the union's CPA, Eric Jansson, only once during my nearly 3 
years as a trustee. 

I have had no experience in bookkeeping, auditing, or accounting. I never 
had seen a voucher before I became a trustee of my union. 

I am a skilled textile worker, known as a looper. Until April 1957, I was 
a looper at the Bachelors' Friends Hosiery Co., York. Pa. I was a member of 
UTWA Local 2646, which had 145 members in the plant where I worked. The 
plant closed, and my union local disbanded. I am now unemployed, but hope to 
get a job in a dye plant soon. 

Given this 20th day of July 1957, at the United States Senate Office Building, 
Washington, D. C. 

E. Henrietta HAitME. 
Witnesses : 

/s/ Joseph Jacobs 

/s/ Ralph Mills 

/s/ MoRTOJv- E. Henig 

Subscribed and sworn to before me this 20th day of July 1957. 

/s/ Chas E. Alden, 

[seal] jVotary Public, District of Colutnbia. 

My commission expires August 14, 1957. 

The Chairmax. The committee stands in recess until 2 o'clock this 
afternoon. 

(Thereupon, the hearing was recessed at 12 noon, to reconvene at 2 
p. m., the same day.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



THURSDAY, JULY 25, 1957 

United States Senate, 
Select Committee on Improper Activities 

IN THE Labor or Management Field, 

Washington^ D. C. 

The select committee met at 2 p. 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 Karl E. Mundt, Re- 
publican, South Dakota ; Senator Barry Goldwater, Republican, Ari- 
zona ; Senator Carl T. Curtis, Republican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel ; Ralph Mills, assist- 
ant counsel; Morton E. Henig, investigator; Alphonse F. Calabrese, 
investigator ; Ruth Young Watt, chief clerk. 

The Chairman. The conunittee will come to order. 

(Members of the select committee present at the convening of the 
session : Senators McClellan, Ives, and Curtis.) 

The Chairman. Call your first witness. 

Mr. Kennedy. We will call Mr. Klenert. 

Apparently, he is not here. Is Mr. Valente here ? 

The Chairman Will you be sworn, please ? 

You do solemnly swear that the evidence you shall give before this 
Senate select committee shall be the truth, the whole truth, and nothing 
by the truth, so help you God ? 

Mr. Valente. I do. 

TESTIMONY OF ANTHONY F. VALENTE, ACCOMPANIED BY HIS 
COUNSEL, J. M. McINERNEY 

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

Mr. Valente. My name is Anthony F. Valente, and my home is at 
3507 Saul Road, Kensington, Md. 

The Chairman. I see you have counsel with you. 

Counsel, will you identify yourself for the record ? 

Mr. McInerney. James M. Mclnerney, 1217 F Street NW., Wash- 
ington, D. C. 

The Chairman. Thank you very much. 

Mr. Valente, how long have you been president of the United Tex- 
tile Workers ? 

3429 



3430 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente. I have been president since 1944. 

The Chairman. International president since 1944 ? 

Mr. Valente. That is right. 

Mr. McInerney. Mr. Cliairman, may we invoke the rule, under 
rule 8, about no pictures ? 

The Chairman. You may. 

Gentlemen, you have heard the request and the request will be 
granted. The Chair might make a little statement about this rule 8 
at this time. 

I am going to make it primarily for other members of the com- 
mittee to be tliinking about, that it is my position, and I think the 
committee's, all members have agreed with me so far, that where a 
witness requests that no pictures be made, we are going to grant that 
request if he is going to testify. 

If lie is going to simply invoke the fifth amendment for an hour or 
two. I am not so sure that the Chair, and I do not know about the rest 
of the committee, will be so considerate, but I am assuming this wit- 
ness is going to testify. 

Mr. Valente. I am going to testify, sir. 

The Chairman. That question is going to come up sometime in the 
future. I think, and I just wanted to make a little announcement 
about it now. 

All right, Mr. Kennedy, you may proceed. 

Mr. Kennedy. Mr. Valente, you were born in Italy ? 

Mr. Valente. That is correct. 

Mr. Kennedy. And you came over to the United States at what 
age? 

Mr. Valente. Five or six years old. 

]Mr. Kennedy. And you are a naturalized citizen? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. You were naturalized at what age ? 

Mr. Valente. I filed my declaration, I believe, in 1936. 

Mr. Kennedy. Up in Lawrence, Mass. ? 

Mr. Valente. In Worcester, Mass. 

Mr. Kennedy. Now, you have been with the United Textile Work- 
ers for how long ? 

Mr. Valente. Since 1933. 

Mr. Kennedy. You went to work in a textile plant at that time? 

Mr. Valente. I was working in a textile plant at that time and I 
started working in the textile plant when I was around 13 years old. 

Mr. Kennedy. Here in the United States ? 

Mr. Valente. Yes, sir. 

]\fr. Kennedy. You have been working with textiles in a textile 
plant or been associated with the textile union since that time? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. Now, you became a member of the union in 1933 ? 

Mr. Valente. That is correct, sir. 

Mr. Kennedy. And that is the AFL union, and at that time was 
there a CIO union ? 

Mr. Valente. There was not. 

Mr. Kennedy. When did the CIO union come into being? 

Mr. Valente. I believe the CIO Textile Workers organizing com- 
mittee oime into being the latter part of 1936 or the first part of 1937. 

Mr. Kennedy. Your union had nothing to do with them ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3431 

Mr. Valente. At that time our union was one of the unions that 
was a part of the CIO. 

Mr. Kennedy. Your union is completely independent and has been 
completely independent from the CIO Textile Workers ? 

Mr. Valente. Since 1939, yes. 

Mr. Kennedy. Since 1939 ? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. Now, you became a member of the Textile Union in 
1933? 

Mr. Valente. Yes, sir. 

]Mr. Kennedy. Where was that ? 

Mr. Valente. That was in Uxbridge, ]\Iass. 

Mr. Kennedy. When did you first become an official of a textile 
union? 

Mr. Valente. It was the latter part of 1933. 

Mr. Kennedy. You became an official in your local, did you ? 

Mr. Valente. Yes, I was secretary of the local union. 

Mr. Kennedy. You were elected secretary of the local union ? 

Mr. Valente. Yes. sir. 

Mr. Kennedy. And you continued as an official until what time ? 

Mr. Valente. Until I think it was the latter part of 1914. 

Mr. Kennedy. Always as secretary ? 

Mr. Valente. Secretary or vice president. 

Mr. Kennedy. You became a vice president ? 

Mr. Valente. That is correct. 

Mr. Kennedy. Vice president of a local ? 

Mr. Valente. Vice president of the local union. 

Mr. Kennedy. What year was that, do you remember approxi- 
mately? 

Mr. Valente. Around 1934 when I became a vice president. 

Mr. Kennedy. xVnd you held that position until 1944 when you 
became president of the international ? 

]Mr. Valente. Xo, that is not correct. I then was elected secretary- 
treasurer of a department of the United Textile Workers of America, 
in the latter part of 1934. 

Mr. Kennedy. What other positions did you hold ? 

Mr. Valente. Well, then, when the CIO Textile Workers oro:aniz- 
ino; committee was set up and came into bein^, I was assioned to work 
in Lawrence, Mass., as a regional director for the CIO Textile Workers 
organizing committee. 

Mr. Kennedy. Do you have any other positions ? 

Mr. Valente. I held that position until I think it was May of 1939 
or the latter part of 1938, where I resigned from the CIO Textile 
Union. 

Mr. Kennedy. Did you take part in the forming of the AFL union ? 

]\Ir. Valente. Yes, sir, for about 6 months after I resigned from 
the textile workers organizing committee, of the CIO, I was on the 
staff of the American Federation of Labor as an organizer, and as- 
signed specifically to work in textiles and to reform the United Textile 
Workers of America, AFL. 

Mr. Kennedy. How long did you remain on their payroll ? 

]Mr. Valente. I would say a year and a half or two j^ears. 

Mr. Kennedy. That is while this union was being formed ; is that 
correct ? 



3432 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente. That is right. 

Mr. Kennedy. Then you were elected president of the international 
in 1944? 

Mr. Valente. I was elected international secretary-treasurer in 
1939, when we were chartered by the American Federation of Labor. 

Mr. Kennedy. In 1944? 

Mr. Valente. In 1939. 

Mr. Kennedy. Were you elected president in 1944 ? 

Mr. Valente. That is correct. 

Mr. Kennedy. You have held that position up until the present 
time ? 

Mr. Valente. That is right. 

Mr. Kennedy. Now, the elections up until recently have been once 
every 2 years ; is that right ? 

Mr. Valente. That is correct. 

Mr. Kennedy. And you have been reelected. Have you had opposi- 
tion? 

Mr. Valente. No, sir. 

Mr. Kennedy. You never had opposition? 

Mr. Valente. No, sir. 

Mr. Kennedy. Now, Mr. Valente, what we are interested in at this 
particular time is in connection with these houses that were purchased 
by you and Mr. EJenert and you are familiar with that, I suspect? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. During 1952 ? 

Mr. Valente. That is right. 

Mr. Kennedy. Early in May of 1952, you and Mr. Klenert made 
plans to purchase two homes, is that right ? 

Mr. Valente. I believe it was prior to early May, and I think it 

Mr. Kennedy. You had made plans in April ? 

Mr. Valente. The first part of April. 

Mr. Kennedy. And the first part of May you were ready to purchase 
those two homes ; were you not ? 

Mr. Valente. We were ready on the first part of May. 

Mr. Kennedy. Now, the cost of these two homes was $95,000; is 
that right? 

Mr. Valente. Well, the cost of my home was $42,500. 

Mr. Kennedy. And the cost of Mr. Klenert's was $52,500 ? 

Mr. Valente. That is correct. 

Mr. Kennedy. And on or about May 5, 1952, $95,000 was deposited 
with the Mutual Kealty Co. ; is that right, Mutual Title Co. ? 

Mr. Valente. Not for that purpose. 

Mr. Kennedy. It was deposited for some other purpose ? 

Mr. Valente. That is correct. 

Mr. Kennedy. What was that purpose ? 

Mr. Valente. It was deposited for the purpose of a deposit on some 
real-estate property in the form of a building or investments for the 
United Textile Workers of America. 

Mr. Kennedy. What building did you have in mind ? 

Mr. Valente. Well, we had looked at a number of buildings. 

Mr. Kennedy. What building did you have in mind for the $95,000 ? 

Mr. Valente. There was no specific building in mind, but we were 
anticipating that we would buy a building. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3433 

Mr. Kennedy. How did you happen to come up with the figure of 
$95,000, which happened to be exactly the same as the price of your 
two homes ? 

Mr. Valente. I didn't look at this particular building myself. It 
was my understanding that there was a building that the downpay- 
ment would require somewhere in the vicinity of $115,000, and the 
$95,000 was put down for the purpose of bargaining purposes. 

Mr. Kennedy. What purposes ? 

Mr. Valente. Bargaining purposes. 

Mr. Kennedy. Did you get some document from the Mutual Title 
Co. in connection with that building ? 

Mr. Valente. No. 

Mr. Kennedy. You did not ? 

Mr. Valente. No. 

Mr. Kennedy. Now, the $95,000 that you say that you deposited 
for the building, was any of that $95,000 used in the purchase of your 
home and Mr. Klenert's home ? 

Mr. Valente. Part of it was. 

Mr. Kennedy. $57,000 ? 

Mr. Valente. Yes, sir. 

(At this point, Senator Mundt entered the hearing room.) 

Mr. Kennedy. $57,000 of $95,000 was used for the purchase of your 
home, and Mr. Klenert's home ; is that correct ? 

Mr. Valente. It was borrowed for that purpose. 

Mr. Kennedy. Was it listed in the records and books of the union 
as being borrowed, or was it listed as a building fund ? 

Mr. Valente. In the part that we borrowed, you mean? 

Mr. Kennedy. Yes. 

Mr. Valente. The part that we borrowed was not listed for that 
purpose. It was listed for organizational purposes. 

Mr. Kennedy. I am talking about the $95,000 that was deposited 
on or about May 5. 

Mr. Valente. That was listed on the books as a deposit on a build- 
ing. 

Mr. Kennedy. It was not listed as a loan to Mr. Klenert or Mr. 
Valente ? 

Mr. Valente. No, sir. 

Mr. Kennedy. Now, subsequently, that $95,000 was returned to the 
union, was it not, $95,000 was returned from the Mutual Title Co. to 
the union ? 

Mr. Valente. That is correct. 

Mr. Kennedy. And $57,000 was substituted for it, is that correct, 
to cover the payments that had been made on your homes? 

Mr. Valente. That is correct. 

Mr. Kennedy. And that $57,000 was charged to organizational ex- 
penses ? 

Mr. Valente. That is correct, and we acted on certain authoriza- 
tions. 

Mr. Kennedy. When you say that you acted under an authoriza- 
tion, were you authorized at that time to deposit the money or use the 
$57,000, the second $57,000, were you authorized to use that to pur- 
chase a liome for yourself and Mr. Klenert ? 



3434 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valexte. Not specifically. We were authorized to lay aside 
or segregate a certain amount of money. We were not told and that 
was left to our discretion how we were going to do it. 

Mr. Kennedy. How did you arrive at the figure? Were you au- 
thorized specifically to lay aside $57,000 ? 

Mr. Valente. As I recall, we had a discussion when it first came 
up, I believe it was sometime the latter part of April, at a board meet- 
ing in Miami, Fla., and we had some discussion as to how much, and 
several people participated in the discussion, and we arrived at a figure 
somewhere in the vicinity of $56,000 and some-odd hundreds. 

Mr. Kennedy. You just arrived at the figure of about $57,000? 

Mr. Valente. I think it was slightly short of that. 

Mr. Kennedy. Was it just a coincidence that this $57,000 figure that 
you arrived at liappened to cover the cost of your two homes, the 
equity in your two homes ? 

Mr. Valente. I believe it was. 

Mr. Kennedy. Just the same coincidence as the $95,000 that you 
originally put up for the purchase of a building happened to cover 
the cost, complete cost, of your two homes ? 

Mr. Valente. I would say so. 

Mr. Kennedy. Those two coincidences happened within 15 days of 
one another, or 10 days? 

Mr. Valente. Yes, sir. 

Senator Curtis. Could you wait there for just a few short ques- 
tions? • 1 1 ,1 ^ 

What was the date that you looked at the houses and decided that 
they would be what you would want to purchase ? _, 

Mr. Valente. Senator, I think we started looking at houses some- 
where around the month of January of 1952. We looked at a number 
of houses and I think we finally decided on the present house or at 
least I put a downpayment on the present house, around the first part 
of April, and I think it was around the 4th or 5th of April of 1952. 

Senator Curtis. Even though your contractual arrangements were 
not completed the first part of April was the time that you decided 
that these were the houses that you would like ? 

Mr. Valente. Yes, and I think that we had 40 days to close. 

Senator Curtis. Now, what was the date of your deposit of $95,000 
with the Mutual Title Co. ? , 

Mr. Valente. I believe it was the first part of May, and I don t 
recall, the second or third or fourth or somewhere in there. 

Senator Curtis. It was May 2. 

Mr. Valente. I would say that was correct. 

Senator Curtis. In other words, you knew for probably 3 or 4 weeks 
prior to your deposit of $95,000 that that was the total sale price ot 
these two houses ; did you not ? 

Mr. Valente. I believe we did. 

Senator Curtis. If they were paid for in cash. 

Mr. Valente. Pardon me ? 

Senator Curtis. If they were to be paid for in cash, it would amount 
to $95,000 for the two of tliem, and you were aware of that figure at the 
time that the $95,000 was deposited with Mutual Title ?_ 

Mr. Valente. Well, I knew what my house was going to cost and I 
knew it was $42,500. 



IMPROPER ACTIVITIES IX THE LABOR FIELD 3435 

Senator Curtis. And you kne^y what Mr. Klenert's house would 
cost ? 

j\Ir. Valexte. Yes, I knew what it was going to cost. 

Senator Curtis. That is all. 

Mr. Kennedy. So the $57,000 was forwarded to the Mutual Title 
Co. and charged to organizational expense, and the Mutual Title Co. 
in return, returned the $95,000 to you people. 

Mr. Valente. Yes, and we deposited $57,000 under the authoriza- 
tion given to us by the executive council the latter part of April of 
1952. 

We also had further instructions to segregate them and call them 
organizational funds. 

Mr. Kennedy. Did you need some money in order to buy your 
homes, at that time ? 

Mr. Valente. Personally? 

Mr. Kennedy. Yes. 

Mr. Valente. Yes. I think I was short about $10,000 that I would 
have to borrow as a second trust. 

The Chairman. Let me ask you a question there. 

How do you interpret the words ''segregate"' and ''lay aside ?'" What 
is their meaning to you ? 

• Mr. Valente. Well, my meaning, and I don't know Avhether I am 
qualified to give the definition of "segregation" or "lay aside," but I 
interpret the instructions from our executive council to lay it aside so 
it would not show to the public that we were holding aside a fund for 
any emergency that may come up within our organization. 

The Chairman. You could lay aside funds where it would not show 
by placing them in cash in a lockbox, could you not ? 

Mr. Valente. I suppose we could have. 

The Chairman. What I am trying to find out is this : Are we to 
believe that you interpreted "lay-aside" and "set-aside funds," as au- 
thorizing you to use those funds for your personal purposes ? 

Mr. Valente. That was the device that we arrived at, at that time, 
Senator. 

The Chairman. I am sure it is a device, but I am asking you, did 
you think the authorization to lay aside money, or segregate it and 
lay it aside, carries with it an authorization to take that money and 
use it for personal benefit and gain? 

Mr. Valente. I don't interpret that I was using it for personal pur- 
poses and gain. All I needed, I could have closed on my house without 
using the segregated money because all I needed was $10,000, at the 
time, which I could have borrowed. 

The Chairman. You could, of course, pay cash, if you had the cash. 
That does not explain it. That is saying you had the money and you 
could have bought it yourself if vou wanted to, or had all of the money, 
but $10,000. 

We are trying to determine here how the trusteeship in this instance 
was exercised in the care and handling and use of these union funds. 

Xow, it is diiBcult for me and it seems to me it will be very difficult 
for anyone else to interpret the words "lay aside" and "segregate 
money," as authorizing the person who was given those instructions 
to take that money and buy a home in his own name when those funds 
were trust funds. 



3436 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Now, that is the action that you took. Did you so interpret and do 
you want to testify now that you interpreted those words to mean and 
to authorize you to do that ? 

Mr. Valente. I was authorized to lay aside and hide away or 
whatever you want to call it, certain amounts of money. I chose or 
I was part of a decision to choose that device. 

As far as I was personally concerned, the only reason why that 
device was used, or the house device, was because we thought at the 
time that that would be a good way to hide away the money. 

I did not need that much money to close on my house, because I 
could have closed that day or the next day, just by securing an addi- 
tional loan of $10,000, which I did later on. 

The Chairman. Let me ask you one other question, now. Suppose 
within the next day or two after you had so used this money to pur- 
chase a home in your own name, you had died. Would there have 
been any record, any written document or evidence whatever if you 
want to call it a loan, that your estate owed that much money to your 
union ? 

Mr. Valente. Well, there would have perhaps not been a record, but 
I would like to call to your attention that at the time the United Tex- 
tile Workers of America had a policy on my life for some $20,000 
where the organization was beneficiary. 

The Chairman. They had that policy before they knew of this 
transaction, did they not ? 

Mr. Valente. Yes, sir. 

The Chairman. They had that policy for some other purpose? 

Mr. Valente. We had the policy, in the name of the United Tex- 
tile Workers of America as beneficiary. 

The Chairman. Is that the policy that you hypothecated on May 5 
to borrow some money ? 

Mr. Valente. That is right, along with the instructions that once 
the $5,000 loan was paid up, it would revert to the United Textile 
Workers of America. 

The Chairman. At least that $5,000 would have had to be paid 
back out of the policy, would it not ? 

Mr. Valente. That is right, and it would have left them around 
$17,000 or $18,000. 

The Chairman. Let me ask you one other question. Would you 
recommend this character of transactions to any other union ? 

Mr. Valente. Not in the normal operations, but we had a peculiar 
problem at the time. Senator. 

The Chairman. Well, I do not know that it is so peculiar. It seems 
to me if it was a good practice for your union to lay aside a little money 
for some special purpose, that all unions might have the same occa- 
sion and need to do likewise. Why would it be peculiar just to your 
union ? 

Mr. Valente. For this reason. Senator: We had a problem and I 
believe it has already been testified to, and I am not going to go into 
too much detail, but I would like to repeat it, that we had a problem 
where we were taking into our organization some 35 to 40 or 50 men 
who, for the 10 or 12 preceding years, had tried to destroy our or- 
ganization through raids. 

In a period of 10 years we had 104 raids against our organization 
and every time one of our contracts would expire, we would be faced 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3437 

with an NLRB election. Out of a clear sky, these men — ^because they 
had an intraunion fight in the CIO Textile Union, were coming into 
our union. 

A number of our people were concerned of what was going to happen 
to our union and what was going to happen to their future. 

I was personally concerned and I felt I had a moral obligation to 
protect the future and the destiny of our union and these men. 

The Chairman. Buying a home for yourself with union moneys is 
not necessarily a protection to the miion, is it ? 

Mr, Valente. That was only a temporary device, as far as I was 
concerned, Senator, and that money was always intended to be re- 
turned to the union, as soon as possible. 

The Chairman. Well, that could be true, but that would make it a 
loan. On the face of it, that is what it may appear to be, in view of 
3'our explanation of it. But the point I am making is laying aside 
money for a specific purpose, that specific purpose could arise even 
the next day after you paid that money for a home, and you would 
not have had the cash on hand to have used it. 

Mr. Valente. I could have borrowed it the next day, sir. That is 
if we decided to return it the next day. 

The Chairman. Well, maybe you could. But if such a practice 
should become an approved practice in the handling of union funds, 
I am sure that there would be occasions when such use would be made 
of the money and it could not be returned when the need arose. 

Mr. Valente. There was never any other intention than to return 
the money. 

Senator Curtis. I have examined, Mr. Chairman, the minutes 
wherein authorization to segregate certain funds was provided for. 

I want to ask you this : Were you ever authorized to take funds and 
remove them so that the ownership and title was no longer in the 
union ? 

Mr. Valente. We were authorized to lay aside without any specific 
instructions as to the method. 

Senator Curtis. Well, I have read the minutes and it uses the word 
"segregate." But do you claim that you were ever authorized to take 
funds so that they were no longer owned by the union ? 

Mr. Valente. We were not given specific authorization as to how 
or what device to use. 

Senator Curtis. I will put it this way: That money that was in 
your house, the union did not have title to it, did they ? 

Mr. Valente. No, that is correct. 

Senator Curtis. They did not have possession of it. 

Mr. Valente. That is right. 

Senator Curtis. Now, were you ever authorized to take funds and 
remove them beyond the possession and title of the union ? 

Mr. Valente. Not specifically, and we were just authorized 

Senator Curtis. Generally, were you ? 

Mr. Valente. Generally, we were authorized to lay aside and the 
device was left to our discretion. 

Senator Curtis. Will you show us that authorization ? 

Mr. Valente. Show it to you ? 

Senator Curtis. The one we have here talks about segregating. 

89330— 57— pt. 9 15 



3438 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente. "Well, I would have to see the minutes of the various 
board meetings, in order to find specific authorization. We first dis- 
cussed it in Miami, the latter part of April of 1952. That was the first 
step. 

Senator Curtis. You mean about buying houses ? 

Mr. Valente. Oh, no. About hiding or laying aside money. 

Senator Curtis. Who knew that this money was placed in your 
houses besides you and Mr. Klenert ? 

Mr. Valente. In what period ? 

Senator Curtis. Anytime. 

Mr. Valente. Well 

Senator Curtis. Anytime before the last of August of 1952. 

Mr. Valente. I would say a number of people knew before the first 
of August. 

Senator Curtis. Who knew at the time it was done ? 

Mr. Valente. Mr. Klenert and myself. 

Senator Curtis. And anybody else ? 

Mr. Valente. No, sir. 

Senator Curtis. Now, you have stated here that that was a loan. 

Mr. Valente. I considered it as a loan, to be repaid at any time that 
we decided the device was no longer necessary and the money should go 
back into the treasury. 

Senator Curtis. What can you point to in support of your conten- 
tion that that was a loan ? 

Mr. Valente. In my own mind it was always a loan. 

Senator Curtis. What else ? 

Mr. Valente. Authorization for loans ? 

Senator Curtis. What authorization for loans ? 

Mr. Valente. "We have had a practice in our organization ever since 
the mid-1940's that we had authority to loan money to the staff mem- 
bers, office employees, officers. 

Senator Curtis. I believe Mr. Klenert stated that and told how he 
borrowed $1,000. 

Mr. Valente. I borrowed on several occasions, and I might add in 
the early part of our reforming the United Textile W^orkers of 
America it worked the other way. I and other individuals loaned 
money to the union, when tlie union needed it and it has not been a 
one-way street. 

Senator Curtis. When you borrowed pursuant to that authority, the 
books and records showed that it was a loan ? 

Mr. Valente. Ordinarily tliey would show it. 

Senator Curtis. When you repaid it, the books and records showed 
that it was a repavment of a loan, did they not? 
Mr. Valente. That is correct. 

Senator Curtis. Do you now claim that the money used to purchase 
these houses was in exercise of that privilege of borrowing money 
that had been extended to officers and employees? 

Mr. Valente. Well, it was a twofold purpose. First, it was a loan, 
and I admit it was a loan, and secondly the only reason why I used it 
as a loan was because we had to find a device to lay aside money. 

Senator Ctt^tis. That is not what I asked you. 
Mr. Valente. I am sorry. 

Senator Curtis. I asked you if you now claim that the taking of this 
money and putting it into your homes was an exercise of that privilege 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3439 

that the officers and employees had of borrowing money from the union 
and paying it back ? 

Mr. Valente. I believe we had that authority, yes, sir. 

Senator Curtis. Do you claim now, and I think you understand my 
question, do you claim now that the taking of the money that went into 
your homes was made by availing yourselves of the practice and 
privilege that had been carried on there, allowing officers and em- 
ployees to borrow money and pay it back ? 

Mr. Valente. Yes, that is correct, one part of it. 

Senator Curtis. Why did you not handle it that way ? 

Mr. Valente. Because we had the other problem, and we had the 
problem of laying aside or hiding away. 

Senator Curtis. Now, who were you hiding from ? 

Mr. Valente. We were hiding from groups that we had taken into 
our organization, that from past history and past records we did not 
know whether they were going to become loyal members of the United 
Textile Workers of America, or whether they were going to try to 
change and take over and change the structure of the United Textile 
Workers of America. 

Senator Curtis. Is it your contention that you could hide funds 
from the loyal members of your union ? 

Mr. Valenit:. No, sir. 

Senator Citrtis. But you can from the disloyal members? 

Mr. Valente. That is correct. 

Senator Curtis. Who determines whether they are disloyal? 

Mr. Valente. They may have not been any disloyal members. 

Senator Curtis. You have stated that you cannot hide funds from 
loyal members, and now you tell me about this practice of hiding the 
money from the disloyal ones, but make it open and plain to the loyal 
ones. Will you explain that ? 

Mr. Valente. Because, as I have stated before, the money could 
have been returned at any time that either the emergency did not 
exist 

Senator Curtis. We are not talking about returning the money. 
You have stated that you had no right to hide funds from the loyal 
members of the union. 

Mr. Valente. We weren't hiding them for that purpose, I think 
that I said. 

Senator Curtis. I am not concerned about what the purpose was. 
I am asking you how this transaction failed to hide this money from 
the loyal members of your union. 

Mr. Valente. We didn't have to hide from them. 

Senator Curtis.. What is that ? 

Mr. Valente. We didn't have to hide from them. 

Senator Curtis. I didn't ask you if you had to hide. I asked you 
how it was revealed to the loyal members and hidden from the disloyal 
members. 

Mr. Valente. It wasn't revealed in that particular period ; eventu- 
ally, it was revealed. 

Senator Curtis. Well, you have admitted that you have no right 
to hide the property that belongs to the members from the members, 
if they are loyal? 

Mr. Valente. Yes, sir. 

Senator Curtis. But you did that, did you not ? 



3440 nviPROPER activities in the labor field 

Mr. Valexte. We acted under the instructions of the executive 
council, Senator. We had the right, and we had the authority. 

Senator Curtis. But you hid it from all of your members, whether 
they were loyal or not, did you not ? 

Mr. Valente. We Md it from everyone. 

Senator Curtis. Including the loyal members; is that not right? 

Mr. Valente. With the exception of the members of the executive 

council, and they knew, and I understood it to mean, that this money 

was going to be used for the protection of the loyal members of the 

United Textile Workers of America. 

Senator Curtis. That is all. 

Senator Mundt. Mr. Valente, you base this reason for developing 
this hidden-ball trick, which we are discussing, on the fact that you 
were taking in, I believe, a new element of members into your union, 
about whom you had some suspicions as to their loyalty to the overall 
purposes and membersliip of the union. 

Mr. Valente. That is correct, because of past history, and past 
events. 

Senator Mundt. How many new members were taken in, that were 
suspected of disloyalty, and how big an element was this ? 

Mr. Valente. We put on the payroll of the United Textile Workers 
of America every organizer and every official that was discharged by 
the CIO textile union president, and I think we went as high as forty- 
odd at one time, at our peak. 

Senator Mundt. You got in 40 people ? 
Mr. Valente. Forty staff members. 

Senator Mundt. There were about 40 people of whom at the time 
you had some suspicion ? 

Mr. Valente. That is correct. 

Senator Mundt. I cannot quite understand how 40 people in a union 
of 60,000 could do anything particularly wrong with your funds, even 
though they were disloyal. 

Mr. Valente. Senator Mundt, I think we have a little confusion. 
There were more members than that, but I am talking now of the staff 
members, the representatives. 

Senator Mundt. I am talking about the members. How many 
members did you brmg in ? 

Mr. Valente. Well, when the campaign first started, there were a 
number of guesses, anywhere from 100,000 down. 
Senator Mundt. New ones, you mean ? 

Mr. Valente. That is what we were promised ; that is correct. 
Senator Mundt. And you had how many of your own ? 
Mr. Valente. At that time, I think that we had something like, I 
would be guessing and I would have to check, but I would guess about 
65,000 or 70,000. 

Senator Mundt. So that you are telling us that the new element 

brought in had more votes than the hometown crew that you had 

before ; is that right I • • i j 

Mr. Valente. If the highest promise made was realized, it would 

be that way, sir. 

Senator Mundt. All right; now, I have a little difficulty, Mr. 
Valente, squaring what you have just said this afternoon with the re- 
port filed by Mr. Joseph Jacobs and the four members of the executive 
board who examined this transaction at the request of Mr. Meany, 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3441 

and then reported back to him in a letter of January 28. You are 
familiar with that report ? 

Mr. Valente. Yes ; I am. 

Senator Mundt. And, at the top of page 3 of that report, they re- 
late this situation that you have just described, which, certainly, takes 
on a validity if you were taking in more members than you had mem- 
bers of your own group, and I can see how some suspicions might 
develop. 

Mr. Valente. It didn't turn out that way, but we anticipated that 
it might. 

Senator Mundt. I have no proof to the contrary, so that would tend 
to buttress that argument. After that paragraph related by this com- 
mittee, that Mr. Meany says is a whitewash committee and which you 
say is a factual committee, and we are trying to find out what com- 
mittee it is, comes this paragraph : 

The committee finds that, in keeping with such recommendations — 

the recommendations of your executive board that you have this hid- 
den-ball trick — 

the sums of $30,000 and $27,000 were immediately set aside in liquid fashion for 
such purpose. 

This is what I want to devote your attention to : 

The committee further finds that thereafter, when the question arose that 
such funds had been apparently withdrawn from the organization for the private 
and personal use of the president and secretary-treasurer, after consultation 
with members of the executive board, this stated amount of money was returned 
to the treasury of the United Textile Workers on August 27, 1952. 

That clearly leaves the implication that the committee itself frowned 
on the device employed by you and Mr. Klenert of putting this money 
into j-^our personal homes. 

I would like to have your comments on that. 

Mr. Valente. Well, of course, Senator, I wasn't on the committee. 
I didn't take any part in drafting that report. It would be quite 
difficult for me to ascertain, or to state what the committee had in mind, 
when they used that language. 

Senator Mundt. Well, they said they did this after consultation 
with members of the executive board, and I presume that you at that 
consultation, you and Mr. Klenert are members of the executive board. 

Mr. Valente. I presume they consulted with me, too. 

Senator Mundt. What transpired at that consultation ? 

Mr. Valente. I don't remember exactly what transpired at this 
time. Senator. 

Senator Mundt. Well, you agree at least that a third party, reading 
the paragraph that I have just quoted, would have to arrive at the 
deduction that the committee had frowned on that particular device 
for segregating the fund. 

Mr. Valente. I wouldn't say that they frowned, because that com- 
mittee at the time that they drew up that report, already knew and had 
known for some time that we used the houses as the device for laymg 
aside. In fact they knew away back, several weeks after May 15, they 
knew. 

Senator JNIundt. Then they requested you to return the money to the 
fund ; is that right ? 

Mr. Valente. No ; we made that decision, Mr. Klenert and myself 
made the decision to return the money. 



3442 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. Did the executive board ask you to do that ? 
Mr. Valente. No, sir. 

Senator Muistdt. Then this report does not mean what it says, be- 
cause it says : 

After consultation with members of the executive board, the stated amount 
was returned. 

Mr. Valente. After we stated with members of the executive coun- 
cil, both Mr. Klenert and myself called to their attention some of the 
rumors that were going around and one of the rumors was that my 
house had been paid for in cash, and was loan-free and paid for with 
union funds and there were many rumors going around and we decided 
to do it and we consulted with the executive council, and they said, 
"Go ahead and put it back." 

Senator Mundt. Some of your presentation this afternoon has 
been very persuasive, and convincing to me, Mr. Valente, but it was 
not very persuasive and convincing when you answered the chairman's 
question by saying it was just a curious coincidence that you happened 
to lay aside $57,000 and the $57,000 just happened to be the amount 
of money owed on the houses. I do not think that you are quite candid 
with us when you tell us that is just a strange coincidence. 

Mr. Valente. I would say it was a coincidence because of this, 
Senator: All I needed to settle on my house, I wish to repeat, was 
$10,000, which I could have borrowed. So if we used that formula, 
and of course it coincides with the $57,000, and the exact amount 
needed for the house was a coincidence. 

Senator Mundt. That still is not very convincing. It is quite an 
unusual sum, if you are going to set aside some money for the pur- 
poses which you have stated and which you have explained rather 
persuasively, as being a legitimate reason. I can see how you might 
set aside $50,000, $60,000, or $65,000, but this is a curious figure of 
$57,000. You just don't ordinarily do things in those numbers which 
are not rounded out unless there is some motivating factor. The moti- 
vating factor to me, appears to be the fact that you had that $57,000 
obligation for the houses, and you determined at that time to use it for 
that purpose. 

Mr. Valente. That is when we had the discussion. One member, I 
recall, offered the formula inasmuch as our membership I will say was 
around $67,000, that we should put down $1 a head. 

Senator Mundt. That I could understand, and that would be 
$67,000. 

Mr. Valente. Then someone raised a question that 10 cents of that 
dollar per member per month was earmarked as a defense fund, and so 
that reduces it to 90 cents per member per montli, and someone else 
ojffered the idea tliat there should be some deduction for administra- 
tion expenses. It came to roughly, and I don't recall the exact fig- 
ure, around fifty-six-thousand-odd-dollars, and we used the next figure. 

Senator Mundt. You have been at these hearings throughout, and 
did you hear what Mr. Klenert testified to ? 

Mr. Valente. Yes ; I was. 

Senator Mundt. Did you hear his testimony, when the committee 
interrogated him about the general overall policy of running a loan- 
ing agency at which you could borrow money without interest, and 
without collateral, if you happened to be in the select circle of officials 
and council members? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3443 

Mr. Valente. Yes, sir. 

Senator Mundt. Did you hear that ? 

Mr. Valente. Yes, sir. 

Senator Mundt. Did you hear liim say that that was a bad prac- 
tice, and that he was going to support a move to stop that kind of 
practice ? 

Mr. Valente. Yes ; I did, sir. 

Senator Mundt. Do you want to comment on that ? 

Mr. Valente. Both Mr. Klenert and myself strongly recommended 
at our last meeting on Saturday and Sunday, that that practice be dis- 
continued and that on many more practices were voted by the executive 
council to be discontinued. 

Senator Mundt. You are talking about just this past weekend? 

Mr. Valente. Last Saturday and Sunday, sir. 

Senator Mundt. Was your recommendation adopted by the Council ? 

Mr. Valente. By unanimous vote, sir. 

Senator Mundt. Do you think these hearings may have contributed 
to the unanimity of the vote, Mr. Valente ? 

Mr. Valente. In that respect, I would say yes, sir. 

Mr. Kennedy. Mr. Valente, I was interested in your statement about 
the fact that all you had to do was raise $10,000 in order to purchase 
these homes ; is that correct ? 

Mr. Valente. Roughly, I would say that is correct, sir. 

Mr. Kennedy. And you could have done it without any difficulty. 
Well, ultimately, I believe you also said that you could have raised 
this $10,000 with no diiRculty and it would have been easy. 

Mr. Valente. At that time it would have been very easy. 

Mr. Kennedy. Then, on August 27, 1 believe you did return $57,000 
you and Mr. Klenert returned $57,000 ; is that not right ? 

Mr. Valente. That is correct. 

Mr. Kennedy. Did you have to borrow money in order to return 
the $57,000? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. Did you borrow $10,000? Is that how much you 
borrowed ? 

Mr. Valente. We borrowed a lot of money around that time. 

Mr. Kennedy. You borrowed a lot of money ? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. If you only needed $10,000, you borrowed even more 
than $10,000? 

Mr. Valente. We borrowed more than we actually needed ; yes, sir. 

Mr. Kennedy. Did you go to a bank and get the $10,000 that you 
needed ? 

Mr. Valente. Some loans were at banks, and some loans were from 
private individuals. 

Mr. Kennedy. It would have been very easy to return this money ; 
if that is so, why was it necessary to go to various sources in order 
to raise money ? 

Mr. Valente. Because we were borrowing money, at that time, as 
I recall, and the organization was borrowing money, and we antici- 
pated at that time that the way things looked that unless we borrowed 
money we would be running in a deficit. 

JSIr, Kennedy. I am talkmg about you and Mr. Klenert. 

Mr. Valente. That ties in with it. 



3444 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. Kennedy. We are just talking about you and Mr. Klenert bor- 
rowing money. 

Mr. Valente. The reason why we overborowed, and the reason why 
I overborrowed, and I believe Mr. Klenert had the same idea in mind, 
was that we anticipated that we might have to go on half pay or no 
pay, and we wanted to be prepared. 

Mr. Kennedy. You had to go on what ? 

Mr. Valente. With half pays, or no pays for a period. So we 
wanted to have money to carry on. 

Mr. I^NNEDY. So you borrowed it all in this period of time ? 

Mr, Valente. We made a number of overtures for loans, from a 
number of people, and when they all came through, we accepted them. 

Mr. Kennedy. Did you go to any of the companies with whom the 
United Textile Workers of America had contracts, and did you go to 
any of the officers of those companies to try to get loans ? 

Mr. Valente. There was one transaction that I participated in; 
yes, sir. 

Mr. KJENNEDY. What was that ? First let me ask you : How much 
money did you and Mr. Klenert borrow during this period of time, 
in order to pay back the $57,000 ? 

Mr. Valente. Well, of course, I cannot give you at the moment fig- 
ures for Mr. Klenert, but I can tell you how much money I borrowed 
personally. 

Mr. Kennedy. How much money did you borrow ? 

Mr. Valente. I would have to think back a little bit. This is from 
recollection right now. It was 5 years ago. I borrowed in that 
period, from May to August, $5,000 from the City Bank, and I bor- 
rowed $7,500 from the Philadelphia National Bank, and I borrowed 
$5,000 — I am talking in thousands, and if I should say hundreds, it is 
thousands- It was thousands of dollars. 

Mr. I^nnedy. The $5,000, the first $5,000 that you borrowed that 
you mentioned was from the City Bank, for a downpayment on your 
home, one of the payments on your home ? 

Mr. Valente. Well all of this eventually was used. 

Mr. Kennedy. I am going to get to that. That $5,000 was bor- 
rowed on May 5 ? 

Mr. Valente. With that purpose in mind. That $5,000 was applied 
for, I think, sometime in April, and it came through around May. 

Mr. Kennedy. Now I am talking about the loans that you made 
in August, when you started to go around to try to get money to pay 
back the $57,000, you and Mr. Klenert. Who did you borrow from, 
and how much did you borrow ? 

Mr. Valente. I borrowed $5,000 from Leslie Shomo. 

Mr. KJENNEDY. Who was Leslie Shomo ? 

Mr. Valente. He is the vice president of the National Publishing 
Co. here in Washington. 

Mr. Kennedy. How do you spell that ? 

Mr. Valente. S-h-o-m-o. 

Mr. Kennedy. He is vice president of the National Publishing Co. ? 

Mr. Valente. A personal friend of mine, over a period of 15 to 20 
years. 

Mr. KJENNEDY. Is the National Publishing Co. of any business with 
the United Textile Workers of America ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3445 

Mr. Valente. They do the printing for the United Textile Workers 
of America. 

Mr. Kennedy. You went to an officer of the company with whom 
your union has the contract to do printing ? 

Mr. Valente, Yes, sir. 

Mr. Kennedy. And borrowed $5,000 from him ? 

Mr. Valente. When I went to Mr. Shomo, I didn't go to him as an 
officer of the National Publishing Co. He had been a personal friend 
for a period of 15 years at the time, and we socialized together, and we 
were on a first-name basis, and I knew him when he was a salesman. 
And so I didn't go to him as the vice president or managing director 
of the National Publishing Co. I went to him as a personal friend, 
and put it on a personal basis. 

Mr. Kennedy. Nevertheless, he was at that time, vice president of 
the National Publishing Co. ? 

Mr. Valente. That is correct. 

Mr. Kennedy. And the National Publishing Co. does the publishing 
or printing for the United Textile Workers of America ? 

Mr. Valente. That is right. 

Mr. Kennedy. Now, who else did you borrow money from ? 

Mr. Valente. I borrowed $5,000 from Morris Hilleary. 

Mr. Kennedy. Who is he ? 

Mr. Valente. He was a personal friend that I had known for a 
period of years, and at the time he was running a restaurant in Alex- 
andria, Va. 

Mr. Kennedy. Who else did you borrow from ? 

Mr. Valente. I borrowed $7,500 from the Philadelphia National 
Bank through the assistance of a man by the name of Ed Buczkowski, 
personnel director of Keasbey & Mattison. 

Mr. Kennedy. Would you spell that ? 

Mr. Valente. I am a very poor speller. 

Mr. Kennedy. Could Mr. Calabrese spell it for you ? 

Mr. Calabrese. B-u-c-z-k-o-w-s-k-i. 

Mr. Valente. That is correct. 

Mr. Kennedy. What company is he with ? 

Mr. Valente. At the time — and I don't know what his title is now — 
He was personnel director for Keasbey & Mattison. 

Mr. Kjinnedy. Where is that ? 

Mr. Valente. Ambler, Pa. 

Mr. Kennedy. Does the United Textile Workers of America have 
any contracts with that company ? 

Mr. Valente. Yes, sir. 

Mr. Kennedy. You are the bargaining agent for the employees of 
that company ? 

Mr. Valente. We have been for a number of years. 

Mr. Kennedy. And you were at the time this loan was made? 

Mr. Valente. That is correct. 

Mr. Kennedy. That was for $7,500, is that right ? 

Mr. Valente. That is correct. 

Mr. Kennedy. Now, that makes a total of $17,500. 

Did you borrow any other money ? 

Mr. Valente. Yes. I obligated myself for half of the loan that 
we repaid back to the Riggs National Bank — I think that is the cor- 



3446 IMPROPER ACTIVITIES IN THE LABOR FIELD 

rect name — Riggs here in Washington. I obligated myself for half 
of that, which was $15,000. 

The Chairman. It was $15,000 as the half ? 
Mr.VALENTE. My half was $15,000. 

Mr. Ejennedy. When you went to Buczkowski, did you tell him, or 
what reason did you give him that you wanted to borrow the money ? 
Mr. Valente. I gave him — this is 5 years ago, and I would have to 
search my memory ; it was a telephone conversation — and I told him 
that I needed money, and I mentioned that we were in an organiza- 
tional drive, and I wanted to borow money, and I asked him if he knew 
of any bank that would lend me money. 

Mr. Kennedy. "Wliat did you tell him that you wanted to borrow 
the money for ? 

Mr. Valente. I told him that I needed the money personally, and 
that the organization was in an organizational drive, and because of 
the strain and stress in the organization, they wouldn't have the money 
perhaps to meet the payroll and pay me wages, and I would be on 
half-wages and I wanted to be prepared on any additional money. 

Mr. Kennedy. You didn't tell him that the money was for the 
union ? 

Mr. Valente. I don't recall that I did. I may have mentioned that 
the organization was also trying to borrow money at the time. 

Mr. Kennedy. You didn't tell him that this was a loan for the 
union ? 

Mr. Valente. I don't recollect that I did. 

Mr. Kennedy. Do you think that you might have told him that, 
that it was a loan for the union ? 

Mr. Valente. I don't think so, because I believe as I recall, Mr 
Kennedy, that I told him specifically at the time that I would be per- 
sonally obligated for it, and that I intended to pay it myself, and I 
did a year later. 

Mr. Kennedy. You didn't tell him that the $5,000 loan or the $7,500 
loan that you needed was for the union, and not for yourself ? 

Mr. Valente. I don't recall that I did. I don't know why I should, 
because I was going to be personally obligated for it. 
_ Senator Curtis. What was the conversation about an organiza- 
tional drive, and why was that injected in there if it was not to con- 
vey the idea that it was for the benefit of the union, even though you 
might be the maker of the note ? 

Mr. Valente. The reason why I mentioned the organizational 
drive, Senator, may have been because we did have an organizational 
drive, and if I did mention it I don't recall whether I did. I may 
have. It was because of the fact that I wanted to impress him that be- 
cai^se of the organizational drive, the organization may not be in a 
position to meet the payroll and pay my wages, so I wanted to be 
prepared. 

If I mentioned it at all, and my memory is quite vague, and this is 5 
years ago, and it was a telephone conversation. 

Senator Ives. All of these personal loans haA^e now been paid over 
by you ? 

Mr. Valente. Yes, sir. 
Senator Ives. All of them ? 

Mr. Valente. Yes, sir. That particular loan was paid off in exact- 
ly 1 year, and it was paid by me personally, and I paid interest on it. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3447 

and I think it was 41^ or 5 percent and it was a bank transaction, and 
I paid it off. 

Senator Muxdt. What was the loan at the Riggs National Bank? 
It was $30,000, and you obligated yourself for half of it? 

Mr. ValeoStte. That is correct. 

Senator Mundt. You and Mr. Klenert made it together, with a 
joint signature, or how was that done ? 

Mr. Valente. There were some second trusts used, and my house, 
and Mr. Klenert's house were put up as security, as a second trust. 

Senator Mundt. That was a mortgage loan that you made ? 

Mr. Valente. It was a second trust, or second mortgage, whatever 
they call it. 

Senator Ives. You have done pretty well. As nearly as I can figure 
out, you had $32,500 that you borrowed yourself or had to pay off 
yourself. How many years have you been doing it, 5 years ? 

Mr. Yalente. That is correct, sir. But don't lose sight of the fact 
that I didn't need that much money. I stated that before. I didn't 
need that much money — 

(The witness conferred with his counsel.) 

Mr. Valente. I am sorry ? 

Mr. MoInerney. I don't think he understood your question. 

Senator I\^s. He had $32,500 that he paid off' in 5 years' time, as 
nearly as I can figure out from the statement, and he has had an income 
of $15,000 a year. 

Is that your salary ? 

Mr. Valente. My salary lias been $15,000 since last year. 

Senator Ives. Have you had any other income than that ? 

Mr. Valente. No, sir. 

Senator Ives. You have done all right to pay off that much in that 
period of time with that salary. 

Mr. Valente. I think you miss the point, Senator. I didn't use 
all of that money that I borrowed. In fact, I stated that I was over- 
borrowed, and I took everything that came along at the time. Some 
of that money that was borrowed was actually paid back. 

Senator Ives. I see. 

Mr. Kennedy. In this connection, this loan from Buczkowski, we 
have an affidavit from him, Mr. Chairman. 

The Chairman. The Chair will read this affidavit and ascertain 
whether you wish to make any comment on it or correct any statement 
made in it. It is made under oath. 

I, Edward Buczkowski, marie the following true and voluntary statement to 
Alphonse F. Calabrese who has identified himself to me as an investigator with 
the Senate Select Committee on Improper Activities in the Labor or Management 
Field. 

I make this voluntary statement in the presence of my attorney, Mr. Joseph S. 
Kleinbard. I have been told that this statement is to be used and read into the 
record as sworn testimony in the hearings before this Senate Select Committee 
on Improper Activities in the Labor or Management Field. 

I am a resident of Ambler, Pa., and am employed as director in charge of 
manufacturing at the Keasbey & Mattisou Co., manufacturers of asbestos prod- 
ucts at Ambler, Pa. The plants in Ambler, Pa., are covered by a contract with 
the United Textile Workers of America, and approximately 800 to 900 hourly 
workers are members of Local 2409, UTWA. 

I have known Anthony Valente, president of the UTWA, for a number of years 
through business dealings with the union. In August 19.52 (the exact date I do 
not recall) I received a telephone call from Anthony Valente, at which time he 
requested a loan from the company of somewhere between $5,000 and $10,000. 



3448 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente advised that the reason the union needed this loan was because of 
a momentary financial shortage as a result of the union's membership drive which 
they were conducting during this period in the South, and in the Philadelphia 
area. 

I told Mr. Valente that his request would be considered, and that I would 
call him back. I then took up the matter with the then president, Mr. Ernest 
Muehleck, Mr. D. W. Widmayer, vice president in charge of sales, and Mr. W. L. 
Spielberger, director of finance. As a result of this discussion, it was agreed 
that the company would not make a direct loan to the union but, if he wei-e 
interested, we woixld arrange for a loan through a bank and he would be obli- 
gated to complete the transaction with the bank and make payments at the bank 
at their customary rates of interest. In other words, Anthony Valente was to 
sign for the loan and the company would be the guarantor of the loan. It was 
also decided at this time that the amount of the loan which the company would 
guarantee was $7,500, and that the money would be obtained through the Phila- 
delphia National Bank, which is the bank used by the company. 

I telephonically advised Mr. Valente of this and he agreed to these arrange- 
ments. 

The actual financial arrangements for the loan to Mr. Valente were made by 
Mr. W. L. Spielberger, director of finance. I have been advised by Mr. Spiel- 
berger that Anthony Valente received the loan of $7,500 from the Philadelphia 
National Bank on August 20, 1952, and that Mr. Valente repaid the loan pur- 
suant to the loan agreement. 

Mr. Valente made it very clear in this original telephone request that he had 
nothing to offer the company, and that, if we refused the loan, it would not in 
any way jeopardize our relations. We were offered nothing, we expected nothing, 
and we received nothing, and I would say about the only reason for the loan was 
a gesture of good will. 

Edward Buczkowski. 

It is witnessed by three different persons, and sworn to by a notary 
public. 

The exact and true copy of the affidavit may be printed in the record 
at this point. 

(Affidavit referred to appears above.) 

Mr. Kennedy. Mr. Chairman, in this connection, we have another 
letter that we obtained from the bank in connection with the subpena 
that I would like to have offered. 

Mr. Calabrese can offer it. 

The Chairman. Mr. Witness, is there anything in that affi.davit 
that you care to comment on ? 

Mr. Valente. First let me say, Senator, that I may differ with his 
recollection and my recollection because, as I said before, this is 5 years 
ago. 

I knew at the time that it was a personal obligation as far I am con- 
cerned. I did sign for it, I did repay it myself. 

Secondly, I did not know at the time that the company was going 
to endorse or guarantee the loan. In fact, when I received the check 
and the note for me to sign, it is my recollection that there was no 
endorsement on the note. 

I know that you are not creating this inference, but I am afraid that 
it may be inferred, that this company or the members of our union 
may have suffered because of this so-called goodwill that the company 
mentions. I want the record to show that since 1952 there has been 
somewhere in the vicinity of between a 30 and 40 cents an hour in- 
crease in wages for these workers ; that the average wage is $2.07 per 
hour, at present; the average wage in textiles at the present time is 
$1.51 per hour; and the average wage in manufacturing, I believe, is 
around $2.01 an hour. Here, it is $2.07 per hour. 

(At this point, Senator Ives withdrew from the hearing room.) 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3449 

Senator Mundt. The average wage in textiles ? 

Mr. Valente. In textiles. It is $1.51 an hour. The average wage in 
manufacturing is $2.01 per hour. The average wage in this plant is 
$2.07 per hour. 

The Chairman, Let me ask you this question : Did you get the loan 
from Buczkowski's company ? 

Mr. Valente. No, sir. 

The Chairman. You got it from a bank ? 

Mr. Valente. That is correct, sir. 

The Chairman. You probably never saw the letter which I liold 
in my hand, the photostatic copy of it. I will have it placed in the 
record by someone else. 

TESTIMONY OF ALPHONSE F. CALABRESE— Resumed 

(Members present at this point in the proceedings : Senators McClel- 
lan, Mundt, and Curtis.) 

The Chairman. Mr. Calabrese, have you been previously sworn? 

Mr. Calabrese. Yes, I have, sir. 

The Chairman. I hand you a photostatic copy of a letter and ask 
you to identify it and state where you procured it. 

Mr. Calabrese. This is a letter obtained from the files of the Phila- 
delphia National Bank in connection with the loan made to Mr. An- 
thony Valente, obtained as a result of a subpena of this committee ask- 
ing for these records. 

The Chairman. The Chair will read the letter into the record. 

This is a photostatic copy of a letter on Keasbey & Mattison Co. 
stationery. Ambler, Pa., August 20, 1952 : 

Strictly Private and Confidentiax 

Mr. Ralph D. Withington, 

Vice President, The Philadelphia National Bank, 

Philadelphia, Pa. 

Dear Ralph : We have been approached by Anthony Valente, president of the 
United Textile Workers of America to assist the union financially to the extent of 
a loan in the amount of $7,500. 

The company has agreed to endorse Mr. Valente's personal note in that amount 
which he would like to have run for 1 year and which he agrees to amortize at 
the rate of one-twelfth (l/12th) each month. 

Will you please, therefore, draw your check in the amount of $7,500 to the 
order of Anthony Valente and prepare a note for his signature, which we will 
secure — 

and then there is a pencil note — 

endorse — In the meanwhile, charge our account until the signed note is returned 
to your possession, signed by Mr. Valente and endorsed by ourselves. Mr. Valente 
is president of the United Textile Workers of America (A. P. of L.) 306 Machin- 
ists Building, 818 13th Street, N. W., Washington, D. C. 
Your assistance in this matter will be greatly appreciated. 
Sincerely, 

Keasbet & Mattison Co., 
W. L. Spielberger, 

Director. 
The Chairman. This may be printed in the record. 



3450 IMPROPER ACTIVITIES IN THE LABOR FIELD 

TESTIMONY OF ANTHONY F. VALENTE, ACCOMPANIED BY HIS 
COUNSEL, J. M. McINERNEY— Eesumed 

(Members present at this point in the proceedings: Senators Mc- 
Clellan. Mundt, and Cnrtis.) 

Mr. Kennedy. You were also talking about a loan that you received 
through the R^iggs National Bank, were you not ? 

Mr. Valente. That is correct. I obligated myself for half of that 
loan. 

Mr. Kennedy. How much of that loan for ? 

Mr. Valente. I believe the face value of tlie loan was $30,000. My 
share of the obligation would be half, or $15,000. 

Mr. Kennedy. You received that loan from the Riggs National 
Bank? 

Mr, Valente. No. In fact, I wasn't present when the loan was 
negotiated. I said, I believe, that it was paid back, that they were the 
collecting agency, the Riggs National Bank. 

Mr. Kennedy. So it wasn't borrowed from the Riggs National 
Bank? 

Mr. Valente. No. I understood that the money came from other, 
sources. 

Mr. Kennedy. Where did that money come from? 

Mr. Valente. Well, I understood— I didn't find this out, who the 
people were, until several weeks ago. The people that put up the 
money weren't known to me at that time. All I knew was that Mr. 
Quigtey was able to get these peoj^le to put up the money and then 
the Riggs National Bank was the collector. 

Mr. Kennedy. Who were the people? 

Mr. Valente. I found out several weeks ago that there was a Mr. 
Fisher involved. 

Mr. Kennedy. Mr. Fisher ? 

Mr. Valente. I am a little vague on these names. I understand a 
Mr. Fisher and a Mr. Yudelevit. 

Mr. Kennedy. Yudelevit ? 

Mr. Valente. And others. Those are the only two names that stuck 
in my mind. 

Mr. Kennedy. What about Rosenblatt ? 

Mr. Valente. Yes, I saw that name, too. 

Mr. Kennedy. Wasn't the loan for $33,300 ? 

Mr. Valente. I believe that included the interest or discount, or 
premium, whatever you call it. I don't know what the exact term is. 

Mr. Kennedy. I don't understand why you would not know more 
about your finances during this period. 

Mr. 'Valente. Well, I was there the day that the money was re- 
ceived. I knew that I w-as obligating myself. I knew that the money 
was there. I knew that Mr. Quigley had arranged to have it there. I 
didn't concern mvself so much with the peo])le who had put up the 
money. I knew I had to pay the Biggs National Bank half of that 

note. 

Mr. Kennedy. You borrowed $36,000, did you not. rather than 

$30,000 ? , 

Mr. Valente. T don't recall that we did. I think that was the 
interest and premium that we paid on the note. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3451 

Mr. Kennedy. The note was for $36,000 and all you received was 
$33,300. 

Mr. Valente. Perhaps you are right. 

Mr. Kennedy. If you had all this money around the house or avail- 
able, why did you make such an arrangement as that ? 

Mr. Valente. We didn't have all that money around the house or 
available. 

Mr. Kennedy. You only needed $10,000 for your house, to pay for 
your house. You already borrowed $17,500. 

Mr. Valente. I believe I have testified, Mr. Kennedy, that when we 
settled on my house, I only needed $10,000 at that time. 

Mr. Kennedy. Then why did you borrow first this $17,500 from 
these various sources ? 

You understood this person from whom you borrowed was a note 
shaver, did you ? 

Mr. Valente. No, I didn't understand anything about that. 

Mr. Kennedy. You didn't understand anything about that? 

Mr. Valente. No. 

Mr. Kennedy. Where did you understand they were going to get the 
money ? 

Mr. Valente. I don't know where they got the money. I know they 
put up the money, at Mr. Quigley's behest, and I obligated myself for 
half of that. 

Senator Mundt. Did you go to Mr. Quigley to have him make the 
arrangements or did you go to the bank ? 

Mr. Valente. The arrangements were made by Mr. Quigley. 

Senator Mundt. You and Mr. Klenert went to Mr. Quigley and 
asked him to set up this arrangement of a second mortgage? 

Mr. Valente. That is right. 

Senator Mundt. After you had interceded with Mr. Quigley, the 
next you learned about it was that the money was available and you 
had to sign the papers at the bank ? 

Mr. Valente. We signed the papers in Mr. Quigley's office. 

Senator Mundt. And you went down to the bank to get the money? 

Mr. Valenits. lllio the individuals were that put up the money, I 
didn't know at the time, Senator. 

Mr. Kennedy. The money did not come from the bank. All the 
bank did in it was to collect the money. 

Mr. Valente. That is correct. That is my understanding. 

Mr. Kennedy. Did you understand what business these people were 
in who were putting up the money for you ? 

Mr. Valente. I didn't know any of them, sir. 

Mr. Kennedy. Did you ever hear of the term "note shaver"? 

Mr, Valente. I have heard the term "note broker" around Wash- 
ington. I don't know what a note shaver is. I haven't heard the 
term. 

Mr. Kennedy. You didn't feel that it was necessary during that 
period of time that you were so interested in raising money, th-^t you 
would have to go to a note shaver? You didn't have any discussions 
like that? 

Mr. Valente. No. We had no such discussion. We were interested 
in borrowing money. We borrowed as much as would come along, 
when we finally did. 



3452 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. IvENNEDY, All during this period of August, after you had 
seen Mr. George Meany, is that right ? 

Mr. Valente. Well, I don't know. I don't want to fix a date. I 
don't know whether it was after we saw George Meany or before we 
saw George Meany, but it was in that period. 

The Chairman. The real question is after you had presented to Mr. 
Meany this financial report, was when you undertook to borrow 
money ? 

Mr. Valente. I believe it was after, sir. 

The Chairman. In other words, if you had gotten the money from 
Mr. Meany, it would not have been necessary for you to go around 
to all these places ? 

Mr. Valente. No, I wouldn't say that, sir. The money we asked 
Mr. Meany to endorse was strictly for organizational purposes. 

The Chairman. You would still have to borrow for your personal 
purposes ? 

Mr. Valente. We would have to borrow to clear up the transaction. 

Senator Mundt. I do not believe the witness answered the question 
of the counsel as to why they wanted so much more money than the 
$10,000 actually involved for the house. I am curious as to that, too. 

Mr. Valente. Why ? 

Senator Mundt. Yes. 

Mr. Valente. As I said before, we anticipated a period, a long pe- 
riod — and I have had a lot of experiences since I have been with the 
United Textile Workers, of America, similar experiences — where we 
wouldn't be able to meet the payroll. I wanted to borrow as much as 
I could for any such eventuality. 

Senator Mundt. You mean you were going to borrow the money 
and meet the payroll with your personal funds, or was this going to 
protect you because your salary would not be forthcoming? 

Mr. Valente. To take care of myself, as necessary, and, as I had 
done on previous occasions, help some of the other boys. 

Senator Mundt. How much was the annual payroll that you had 
to meet ? 

Mr. Valente. I would have to check the figures. 

Senator Mundt. Roughly. $10,000? $20,000? $50,000? How 
much ? 

Mr. Valente. I would say our normal payroll, and I am guessing — 
I hate to venture a guess. 

Senator Mundt. I am not trying to hold you, but I am trying to get 
to the general area that is ascertainable. 

Mr. Valente. That would depend on the nmber of men that would 
be on the staff at any given period. I would hesitate to venture a guess 
because I might be so inaccurate that it would not look correct, any- 
where near correct. 

I don't handle the payroll myself directly, so I would hate to ven- 
ture, and I wouldn't want to. 

Mr. Kennedy. Let me ask you : Did you borrow or did you find any 
other money ai'ound during this period of time ? 

Mr. Valente. Find ? 

Mr. Kennedy. Yes. 

Mr. Valente. I didn't find money. I wish I had. 

Mr. Kennedy. You didn't find any money at all ? 

Mr. Valente. No. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3453 

Mr. IvENNEDT. You didn't find that your family or anybody had 
been hiding money from you ? 

Mr. Valente. No, sir. I had some of my own money, if that is 
what you mean. I didn't find any. I had some of my own money. 

Mr. Kennedy. Did you have that money in the bank ? 

Mr. Valente. Well, as I told the investigator, I gave him my rea- 
sons. I had some money. Between my wife and I we had some money 
and we had it in cash. 

Mr. Kennedy. How much was that ? 

Mr. Valente. $10,000. 

Mr. Kennedy. You have had $10,000 in cash ? 

Mr. Valente. Yes. And I gave my reasons to the investigator. I 
don't know that it is going to add to this proceedings to go into per- 
sonalities, but if you want it, I will give it to you. 

Mr. Kennedy. I didn't ask you for your reasons. You had $10,000 
in cash ? 

Mr. Valente, Yes ; and I had a reason for it. 

Mr. Kennedy. And you had it at home ? 

Mr. Valente. Either in my pocket, my wife's pocket, in various 
places. 

Mr. Kennedy. You moved it from one place to another ? 

Mr. Valente. Sometimes I carried it, sometimes my wife carried 
it, sometimes we had it in the house. 

Mr. Kennedy. All $10,000 of it ? 

Mr. Valente. Sometimes it would be less than $10,000. When I 
would get my pay, it would go up to $10,000, around that figure. 
Koughly. It inay not have been exactly $10,000 at all periods. 

Mr. Kennedy. This is money you had been saving ; is it ? 

Mr. Valente. That is right ; over a period of years. 

Mr. Kennedy. And you kept that at home ; is that right ? 

Mr. Valente. At one time it had been in the bank, and at one time 
it came out of the bank for personal reasons. 

Mr. Kennedy. When did you withdraw it from the bank ? 

Mr. Valente. Sometime in 1951. 

Mr. Kennedy. Did you withdraw all $10,000 of that ? 

Mr. Valente. Yes. I withdrew all the monej^ I had in the bank. 

Mr. Kennedy. How much did that amount to ? 

Mr. Valente. Eoughly around $10,000. At one time it was higher 
than that, because I borrowed money on the car, put a lien on the 
car. 

Mr. Kennedy. And you kept all that money at home after that? 

Mr. Valente. Either at home or in pockets. 

Mr. Kennedy. Either at home or in pockets ? 

Mr. Valente. Some of that, of course, was my wife's money. We 
were married shortly after that. Some of that was my wife's savings. 

Senator Mundt. You got $17,000, plus the $10,000 ? 

Mr. Kennedy. He got $17,500, plus $16,650, which is half of $33,300, 
plus $10,000 in cash. 

Mr. Valente. The $10,000 was my own. 

Senator Mundt. So you actually had at this time about $43,000, 
roughly ? 

Mr. Valente. Koughly I would say so. At one time. 

89330 — 57 — pt. 9 16 



3454 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. There must be some other reason you wanted the 
$43,000 other than the fact you thought maybe the union could not 
pay your salary check for a month, because' this would take care of 
your salary for almost 3 years. 

Mr. Valente. Some of it, of course, was to pay back part of the 
$57,000 to the Mutual Trust Co. 

Senator Mundt. How much did you owe at that time ? 

Mr. Valente. Well, at that time, my share of the oblio-ation was 
$24,500. 

Senator Mundt. And you were paying that back because the com- 
mittee had decided the money was to go back into the union funds? 

Mr. Valente. We had decided that the device or the layaway no 
longer was necessary. We knew that the organization needed money, 
and we were trying to borrow money, and because of the vicious ru- 
mors that were going around. 

Senator Mundt. Was there any connection between your paying 
this money back and your conferences and negotiations with Mr. 
Meany ? 

Mr. Valente. No. We had decided to put the money back sometime 
before the so-called exposure of Mr. Meany. 

Senator Mundt. Did you hear Mr. Meany's testimony ? 

Mr. Valente. Yes, I did, sir. 

Senator Mundt. Did you hear him describe your initial report to 
him as a phony ? 

Mr. Valente. Well, it may have been phony — that is his choice of 
language. But it wasn't phony or false as far as the members of our 
executive council were concerned. We did it that way for a specific 
purpose. 

Senator Mundt. It was phony in that the money you had shown in 
that account as being spent for organizational expenses was not spent 
for organization purposes, was it not ? 

Mr. Valente. That was done strictly on the instructions of the 
board to show it that way. 

Senator Mundt. But from the standpoint of Meany, Senator Mc- 
Clellan or Mr. Mclnerney there, anybody looking at it from the out- 
side, would think it was a phony because it was not what it was alleged 
to be. 

Mr. Valente. It could have been from anyone on the outside, but 
it was not 

Senator Mundt. I am not talking about what you are thinking of, 
but Mr. Meany would certainly be justified, and your counsel would be, 
or our counsel, in feeling that it was a phony report in that it does not 
show on its face what it purports to be to the man who reads it. 

Mr. Valente. From his viewpoints. Senator, that is right. 

Mr. Kennedy. You also filed false affidavits with your auditor, did 
you not? 

Mr. Valente. For the same purpose. 

Mr. Kennedy. They were also false ? 

Mr. Valente. I wouldn't say they were false. Maybe they were 
misleading for him, but for our purpose, and to the members of our 
executive council, we didn't consider it false. 

Mr. Kennedy. But they were false as far as he was concerned? 

Mr. Valente. From liis point of view, perhaps. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3455 

Mr. Kennedy. And the affidavits were submitted to him and not to 
your executive council, is that right ? 

Mr. Valente. He asked for an affidavit. 

Mr. Kennedy. It was submitted to him ? 

Mr. Valente. I think he received some kind of an affidavit. I don't 
recall what kind of an affidavit it was. I don't recall the exact de- 
tails surrounding it. We gave him some kind of an affidavit. 

Mr. Kennedy. You submitted an affidavit on the fact that the $57,- 

000 had, in fact, been used for organizational purposes. 
Mr. Valente. We may have done that. 

Mr. Kennedy. I have a copy here. 

Mr. Valente. I would like to look at it, if I may. 

The Chairman. The Chair presents to you a photostatic copy of 
the affidavit which, it has been testified under oath, you signed. It 
is exhibit 36 in the record. 

You may examine it and state whether you admit or deny that it is 
a photosta'tc copy of the affidavit that you signed and which was testi- 
fied to. 

(Document handed to witness.) 

(The witness conferred with his counsel.) 

Mr. Valente. This affidavit, Mr. Kennedy, has no signatures. Lt 
is 5 years ago. I may have signed it and I may have not signed it 

1 don't recall whether I did or not. 

The CiiAiKMAN. The original was returned to you, was it not? 

Mr. Valente. If it was signed, it would have been returned to us, 
I presume. I don't recall it. 

The Chairman. As I understand it, as I recall the testimony, it 
was that you requested it back and it was returned to you, the original. 

Mr. Valente. Well, this wouldn't indicate — the original wouldn't 
indicate whether it was signed or returned to us. 

The Chairman. I am not asking you what that indicates. Tell me 
whether you did sign an affidavit. 

Mr. Valente. I couldn't say for sure whether I did or didn't Sena- 
tor, right now. I don't recall. I may have and I may have not. 

The Chairman. Your auditor testified that you did. 

Mr. Valente. I think the auditor is an honorable man, and I think 
if his recollection is that I signed it 

The Chairman. He testified that the document that you have in 
your hand is a photostatic copy or a photostatic copy of a carbon copy 
which he kept in his files. 

Mr. Valente. If he has testified that I signed it, and I say he is an 
honorable man, most likely I did. But from my recollection now, I 
don't know whether I did or did not sign it. 

Mr. Kennedy. I thought you just said in answer to a question I 
asked you earlier that you dicl submit an affidavit and the affidavit was 
false as far as the auditor was concerned. 

Are you changing that ? 

Mr. Valente. No, I am not, Mr. Kennedy. I heard the discussion, 
I heard the testimony of Mr. Jansson, about an affidavit being signed. 

Mr. Kennedy. You testified yourself that you submitted an affidavit, 
in answer to my question. You said that you submitted an affidavit. 
Is that true or not ? 

Mr. Valente. It may have been, yes. 

Mr. Kennedy. Don^t you know that you submitted an affidavit? 



3456 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente. I can't be sure. I say most likely yes, but I would 

Mr. Kennedy. Mr. Valente, you know that you submitted an aiSi- 
davit, do you not ? 

Mr. Valente. I know now, because there has been testimony to that 
effect. 

Mr. Kennedy. Wasn't that affidavit false as far as the auditor was 
concerned ? 

Mr. Valente. If I signed this affidavit, and I may have and I may 
have not, as far as Mr. Jansson is concerned, this information differs 
from the information known by the members of our executive council. 

Mr. Kennedy. I am not asking you that. The affidavit that you 
submitted, wasn't the affidavit false as far as Mr. Jansson was con- 
cerned ? 

Mr. Valente. It differed. Let me put it this way. It differed. 

Mr. Kennedy. It differed from the facts ? 

Mr. Valente. Differed from the facts as existed and we knew. 

Mr. Kennedy. Thank you. 

The Chairman. This may help you remember. Was Vera Calavisi 
working for the United Textile Workers of America on August 29, 
1952 ? 

Mr. Valente. She may have been. We had a number of girls in oui' 
office. 

What is the name again ? 

The Chairman. Vera Calavisi. 

Mr. Valente. Most likely she was. I recall hearing the name before. 

The Chairman. We have here a photostatic copy of a receipt she 
signed, which has been made exhibit 37, stating that the original copy 
of the affidavit for the United Textile Workers of America was picked 
up by one of the employees of the United Textile Workers of America 
on August 29, 1952. Would you say that is correct ? 

Mr. Valente. May I see it, please ? 

The Chairman. Yes. 

( A document was handed to the witness. ) 

The Chairman. If it was picked up to be returned to the United 
Textile Workers, then I would want to know if you gave instructions 
that it be picked up. 

(At this point. Senator Mimdt withdrew from the hearing room.) 

(Members of the select committee present at this point: Senators 
McClellan and Curtis.) 

(The witness conferred with his counsel.) 

Mr. Valente. I remember the girl. Senator. I do not remember 
giving her any such instructions. I remember the girl in particular 
now. I think she was the switchboard operator and I do not recall 
giving her any such instructions. 

In fact, I don't think I ever gave any instructions to this girl. 

The Chairman. It is unlikely that a girl who was a switchboard 
operator would go over there and pick up those papers without some 
instructions from some official. 

Mr. Valente. It is unlikely that she would, but I don't recall giving 
her such instructions myself. 

The Chairman. It is unlikely that your auditor would release an 
affidavit to her that he had procured without some instructions from 
those who gave the affidavit. Is that not true ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3457 

Mr. Valente. 1 don't dispute that this girl must have followed some 
instructions. However, the instructions I don't recall coming from me. 

Mr. Kennedy. Mr. Valente, in addition to the $57,000 during this 
period of time, there were also checks to cash, also charged to organi- 
zational expenses, of an amount of $17,500. I asked Mr. Klenert about 
some of these organizational expenses and he explained about the fact 
that he had spent some money up with Jacques in Canada, that some 
$7,500 had gone to Jacques in Canada. 

Did he tell you about Jacques in this period of time ? 

Mr. Valente. He gave a complete report. 

Mr. Kennedy. Just answer the question. Did he tell you about 
Jacques ? 

Mr. Valente. He gave a complete report on the Canadian situation, 
when the situation had crystallized and cleared up. 

Mr. Kennedy. Did he tell you about Jacques ? 

Mr. Valente. He told me about the money that was expended and 
how it was expended and who he gave it to. 

Mr. Kennedy. Just answer the question. Did he tell you about 
Jacques ? 

Mr. Valente. At the time ? 

Mr. Kennedy. Yes. 

Mr. Valente. I believe I recall the name, yes. 

Mr. Kennedy. He told you about Jacques ? 

Mr. Valente. Only I didn't pronounce it Jacques. My recollection 
is that it was "Jakes." 

Mr. Kennedy. He told you about Jakes ? 

Mr. Valente. That was the name that I recall. It may have been 
Jacques. The question of pronunciation. 

Mr. Kennedy. Did he tell vou at that time that lie had given some 
$6,500 to Jakes? 

Mr. Valente. Yes, I recall at the time that he reported that he had 
given certain amounts of money to an individual for certain purposes. 

Mr. Kennedy. This is to Jakes ? Did he tell you that he gave $6,500 
to Jakes ? 

Mr. Valente. I don't recall the exact amount, but I know he had 
given X number of thousand of dollars to someone in Canada by the 
name of Jakes for that particular phase of our organizational prob- 
lems. 

Mr. Kennedy. You remember that at that period ? 

Mr. Valente. That is right, because I have a very good memory of 
that occasion because it was quite an historical occasion in our organi- 
zation, cleaning out the Communists. 

Mr. Kennedy. I think it was $7,500 rather than $6,500. 

Mr. Valente. If that is the figure, it must be correct. 

Mr. Kennedy. Then on June 4, there was a check to cash of $1,000 
for Lewiston, Maine. Did you have anything to do with that ? 

Mr. Valente. During that period, without looking back there to 
the records 

Mr. KJENNEDY. We cannot do that, can we ? 

Mr. Valente. I mean your figures there. 

Mr. Ivennedy. Do you have the records ? 

Mr. Valente. For that particular month ? 

Mr. Kennedy. Yes. 



3458 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente. No. When I speak of the record, I am speaking of 
what you are reading from now. 

Mr. Kennedy. It is June 4, cash, expenses, Lewiston, Maine, $1,000. 

Mr. Valente. I was going to say in that period of time I personally 
expended a number of dollars in cash in various parts of the country. 

Mr. Kennedy. Who did you give the $1,000 in Lewiston, Maine, to ? 

Mr. Valente. To people. 

Mr. Kennedy. To whom ? 

Mr. Valente. At this date I can't recall names, Mr. Kennedy. T 
started to say at that time I met many new people that were coming- 
over. 

Mr. Kennedy. Can you name one person that you gave any of this 
money to ? 

Mr. Valente. No, I couldn't. 

Mr. Kennedy. Then there is another $1,000 on the same date, or- 
ganizing expenses, salary. South. 

Who did you give that particular $1,000 to ? 

Mr. Valente. If that is this particular $1,000 that I gave out, I 
gave it to new people in the South that I met and perhaps never met 
again. They were an important part of the machinery to turn over 
local unions, ex-CIO Textile Workers of America. 

Mr. Kennedy. Can you name one person that you gave that money 
to? 

Mr. Valente. At this date, I cannot. 

Mr. Kennedy. The same date, $1,000, organizing expenses, Mid- 
Atlantic States, can you name one person there ? 

Mr. Valente. I cannot. 

Mr. Kennedy. The same date, June 4, $1,000, organizing expenses, 
Massachusetts. 

Mr. Valente. If that was the $1,000 used by me 

Mr. Kennedy. These are the only records available. Who did you 
give it to in Massachusetts ? 

Mr. Valente. I can't recall at this date. 

Mr. Kennedy. Did you go to Massachusetts ? 

Mr. Valente. I must have. 

Mr. Kennedy. Did you go there and stay there ? 

Mr. Valente. Yes. 

Mr. Kennedy. Where did you stay when you went there on Jime 4 
when you went there and gave the $1,000 to someone? 

Mr. Valente. I would have to check my records. I could not say 
where I stayed on June 4 or 5 or 7. 

Mr. Kennedy. D you know anybody that you gave this money to ? 

Mr. Valente. No specifically, no. 

Mr. Kennedy. Casli, June 4, organizing expenses. Midwest. What 
did you do with that ? Do you know who you gave that $1,000 to ? 

Mr. Vaeente. I believe I gave it to people in the Midwest locals. 

Mr. Kennedy. Who did you give it to ? 

Mr. Valente. I can't tell you. 

Mr. Kennedy. You <rave $1,000, I^ewiston, Maine, and $1,000 in the 
South, all on the same date, all to cash and your auditor said there were 
no vouchers for any of these amounts, $1,000 in Lewiston, Maine, 
$1,000 in the South, $1,000 in MidAtlantic States, $1,000 in Massa • 
chusetts, and $1,000 in the ]\Iidwest States. 

You cannot name anyone that received any of that ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3459 

Mr. Valente. All on tlie same date ? 

Mr. Kennedy. June 4. 

Mr. Valente. Can I see that ? 

Mr. Kennedy. There is one other. June 17, Pennsylvania, $1,000. 
Do you know who got that in Pennsylvania ? 

Mr. Valente. Not specifically. 

Mr. Kennedy. Can you name anybody that got that $1,000 ? 

Mr. Valente. No. 

The Chairman. The Chairman presents to you exhibit 24 about 
which counsel has been interrogating you. 

(A document was handed to the witness.) 

Mr. Kennedy. Mr. Chairman, this is part of the auditor's report. 

The Chairman. The Chair wdll announce that the record you are 
looking at there was part of the auditor's report. 

Mr. Kennedy. It was the supplement submitted by Mr. Jansson, 
the auditor, Mr. Chairman. These were items that he questioned. 

Mr. Valeni'e. I want to say that they may show it on here on the 
same dates, but I believe the time that it was actually used or handed 
out may have been at different dates, Mr. Kennedy. 

Mr. Kennedy. But you still do not know anybody that received that 
money ? 

Mr. Valente. No ; as I said before, in that period, we were trying 
to get new groups or new individuals to work for us and bring over 
local unions formerly parts of the CIO textile union to our union 
and the cash money was expended for tliat purpose. I used some of 
that money for that purpose, to hand out to people. 

Mr. Kennedy. You did all of this handing out personally; is that 
right? 

Mr. Valente. Whatever portion of that that I used, I did myself, 
personally. 

(At this point, Senator Goldwater entered the hearing room.) 

Mr. Kennedy. Who else received that money ? 

Mr. Valente, There are other items on there. 

Mr. Kennedy. I am asking you just about the ones for you. 

Mr. Valente. I used that money for that purpose. 

Mr. Kennedy. You handed it out personall}^? That means you 
went to the Midwest, you went to the South, you went to Lewiston, 
Maine, you went to Massachusetts ? 

I am not saying you did it all on the same day. 

Mr. Valente. As I recall on the Midwest group, I think there was 
someone in my office. I did that in Washington. 

Mr. Kennedy. Who was in your office ? 

Mr. Valente. There was a group of people that came from the 
Midwest. Specifically, I can't recall. 

Mr. Kennedy. Can you name anybody that got any of this money ? 

Mr. Valente. No, sir. They were people that I met for the first 
time, ex-CIO people that I met for the first time and perhaps never 
met them again. 

Senator Curtis. Were these checks drawn to replace money that 
had already been handed out, as you say, or were the checks drawn 
and the money handed out afterward ? 

Mr. Valente. It could have been handed out before and then drawn 
out or it could have been drawn out and paid out afterward within an 
area of maybe a week or 2 weeks or 3 weeks. Senator. 



3460 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. How much money would you give to any one indi- 
vidual ? 

Mr. Valente. Well, it would be for situations or a group of indi- 
viduals. 

Senator Curtis. How much money would you give ? 

Mr. Valente. I think those items there were $1,000 apiece. 

Senator Curtis. That means that you gave $1,000 to a particular 
individual ? 

Mr. Valente. No; not a particular individual or a group of indi- 
viduals. 

Senator Curtis. How much money would you give to a single indi- 
vidual ? 

Mr. Valente. Well, I think the $1,000 would be given to the group 
that I met with and they would distribute it further to a larger group 
to do special work and get local unions to vote to come over. 

Senator Curtis. What were they to do with the money ? 

Mr. Valente. They were to use it for expenses of the people inside 
the plant to propagandize, so that the United Textile Workers of 
America would win the elections, the labor board elections. 

Senator Curtis. Were there elections pending in each one of these 
places ? 

Mr. Valente. There were, as I recall, elections all over the country 
at that time. 

Senator Curtis. Political elections in 1952 ? 

Mr. Valente. Not political elections. They were National Labor 
Relations Board elections. 

Senator Cuetis. Did you ever use any of the funds in political elec- 
tions ? 

Mr. Valente. I don't recall that we ever have. We were a part of 
the American Federation of Labor-CIO League for Political Educa- 
tion. That is contributed directly to them. We don't handle it. 

Senator Curtis. Would you say that you never have taken or used 
any money from your funds for a political election ? 

Mr. Valente. Not union funds, not directly. It comes directly from 
the members, voluntary contributions, to the political league. 

Senator Curtis. That is all, Mr. Chairman. 

Mr. Kennedy. We had some testimony by Mr. Klenert regarding 
the purchase of air conditioning and some other purchases. He stated 
that you were able to come up with some cash during this period of 
time, June 16, 1952. 

Could you tell the committee how much cash you had at that time ; 
how much were you able to give to Mr. Klenert ? 

Mr. Valente. I don't recall how much I had at that particular day. 

Mr. Kennedy. That is, that you gave to Mr. Klenert. 

Mr. Valente. I know how much I gave to Mr. Klenert. Whether 
is was the 16th or the day before or the day before that, either that 
day or the day before or 2 days before. I don't recall specifically. 
But I recall giving Mr. Klenert $1,000 to pay my downpayment on 
the air conditioner. 

Mr. Kennedy. That was $1,000 in cash. 

Mr, Valente. That is right. 

Mr. Kennedy. Wliere did you get that ? 

Mr. Valente. That was from my cash, my own money. 

Mr. Kennedy. This was cash that you had at home ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3461 

Mr. Valente. That is right. 

Mr. KJENNEDY. This is the cash that went from pocket to pocket ? 

Mr. Valente. That is right. 

Mr. Kennedy. What other ? 

Mr. Valente. I recall Mr. Klenert asking me if I could loan him 
$1,000 around that same period, and I did. 

Mr. Kennedy, And that is the $1,000 of cash from your home, again ? 

Mr. Valente. That is from the accumulated cash that I testified pre- 
viously that I had. 

Mr. Kennedy. That is $2,000 in cash ? 

Mr. Valente. That is right. 

Mr. Kennedy. In these cities that you were organizing in handing 
this money out for the Midwest, what cities were involved in that ? 

Mr. Valente. I can't recall offhand without checking the records 
at the time. 

Mr. Kennedy. What records would you need to check ? 

Mr. Valente. Situations, consult with the people that were directly 
in charge of the drive, in charge of the areas. 

Mr. Kennedy. Who, for instance, would you consult with ? 

Mr. Valente. Members of the staff, perhaps. 

Mr. Kennedy. Would they know ? 

Mr. Valente. Well, I would have to pinpoint what drive actually 
was going on at that time or what situation was involved. That is the 
only way I could pinpoint it now. 

Mr. Kennedy. Can you name any of the cities in the South ? 

Mr. Valente. Well, practically the whole South was involved. 

Mr. Kennedy. Can you name any of the cities where any of this 
$1,000 was spent in the South ? 

Mr, Valente. Without checking, I think the committee has my 
diary or has my records. I would have to check the diary. That 
might give me some indication, 

Mr, Kennedy. I believe you have the diary. You do not know who 
was in charge of Lewiston, Maine, that you paid $1,000 ? 

Mr. Valente. Again, I would have to check. 

Mr. Kennedy. Mr. Chairman, we have temporarily finished with 
Mr. Valente. 

The Chairman, All right. You may stand aside for the present, 
Mr. Valente. 

Mr. Klenert, come forward, please. 

Mr. Kennedy. I have one more question. 

Was any of the money that I have asked you about here that is 
charged to expenses used to make any purchases in your own home ? 

Mr. Valente. No, sir. 

Mr. Kennedy. Did you buy any furniture ? 

Mr. Valente. Yes, sir, I did. 

Mr. Kennedy. Where did you buy it ? 

Mr. Valente. I think the only furniture we bought in that period 
when we moved into the new house was at P. J. Nee's. 

Mr. Kennedy. At where ? 

Mr. Valente. P. J. Nee's or P. J. Nee here in Washington. 

Mr. Kennedy. P. J. Nee's? 

Mr. Valente. Yes. 

Mr. Kennedy. Did you put rugs in your house ? 



3462 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Valente. Yes. 

Mr. Kennedy. Where did you buy your rugs ? 

Mr. Valente. I think they were bought from the Carpet Shop. 

Mr. Kennedy. That was here in Washington ? 

Mr. Valente. That's right. Either here in Washington or some 
place near. 

Mr. Kennedy. How about curtains ? 

Mr. Valente. Yes, we bought our curtains. 

Mr. Kennedy. Where did you buy those curtains ? 

Mr. Valente. I would have to check with Mrs. Valente about that. 
I think they were bought someplace on G Street. 

Mr. Kennedy. How did you pay for these things that you pur- 
chased ? 

Mr. Valente. Either by check or cash. 

Mr. Kennedy. Did you pay for them with cash ? 

Mr. Valente. Or possibly by check. 

Mr. Kennedy. Was this cash that you were switching from pocket 
to pocket? 

]Mr. Valente. No, I think most of that was purchased with cash. 
I would have to check on the records. 

Mr. Kennedy. Do you have records ? 

Mr. A^ALENTE. You have them. 

INIr. Kennedy. Do we have the records ? 

Mr. Valente. You have my personal records or statements, from 
the City Bank for that period. 

]Mr. Kennedy. All right, we will go into it. 

The Chairman. Come forward, Mr. Klenert. 

(Members present at this point: Senators McClellan, Goldwater, 
and Curtis.) 

TESTIMONY OF LLOYD KLENEUT, ACCOMPANIED BY COUNSEL, 
JAMES M. McINERNEY— Eesumed 

The Chairman. You have been previously sworn. 

Let the record show the same counsel appears for you that appeared 
when you previously testified. 

All right, Mr. Kennedy. 

Mr. Kennedy. I want to take you up to August 1952, Mr. Klenert, 
when you were paying this money back to Mutual Title Co. who, in 
turn, was going to return $57,000 that \vas deposited to the union. 
Where did vou raise vour money in order to pav back what you owed 
of the $57,000, namely $,'^,0,000 ? 

]Mr. Klenert. May I recapitulate here and write it out and then 
give it to you ? 

The Chairman. You may. 

(The witness conferred with his counsel.) 

Mr. Klenert, Just running down here quickly off the top of my 
mind, Mr. Kennedy, I have $5,000 from Paul Young. 

Mr. Kennedy. Paul Young owns a restaurant, is that right? 

Mr. Klenert. That is right. 

]\Ir. Kennedy. The Rumanian Inn ? 

Mr. Klenert. I believe that is the name of it. 

Mr. Kennedy. Here in Washington, D. C, ? 

Mr. Klenert. Yes, sir. $5,000 to Maurice Hilleary. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3463 

Mr. Kennedy. And we have discussed him. He is a personal friend, 
is that riojht ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. He is the same gentleman that Mr. Valente received 
the $5,000 loan from ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Go ahead. 

Mr. Klenert . $16,000 which I have identified as Riggs here, and 
I scribbled it out. 

Mr. Kennedy. Who is that actually from ? 

Mr. Klenert. Well, I too, now, understand that Riggs here was a 
collection agency for the loan, and I have heard these names now of 
the other people who actually had put the money up. 

Mr. Kennedy. You understood that the money was going to be put 
up by individuals at that time, did you not ? 

Mr. Klenert. I understood that — actually, at that time, Mr. 
Kennedy, I must confess I had no clear understanding as to who ac- 
tually put the money up. 

Mr. Kennedy. Well, we will get into that. 

Mr. Klenert. The amount that I put down now 

Mr. Kennedy. That was Yudelevit, Fisher, and Rosenblatt, is that 
right, that group, and Quigley ? 

Mr. Klenert. It is my understanding now, yes, sir. 

I put that down at $16,000. 

Mr. Kennedy. You don't know how much you received on that ? 

Mr. Klenert. Well, I have been sitting in the back of the room, 
sir, and I heard the figure of $33,000, and I recall that half of it was 
used by myself, assumed by myself, so I put down $16,000. 

Mr. Kennedy. O. K. 

Mr. Klenert. I received $5,000 from Mr. Shomo. 

Mr. Kennedy. Of the National Publishing Co ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Was that a National Publishing Co. check, do you 
know? 

Mr. Klenert. I recall now that I endorsed a check, and whose 
check it was I do not recall. 

Mr. Kennedy. You knew it was the National Publishing Co. check, 
did you not ? 

Mr. Klenert. I actually have no recollection as to whose check it 
was. I borrowed $15,000 from the Manufactures Trust Co. 

Mr. Kennedy. Here is a check, Mr. Chairman. 

The Chairman. The Chair presents to you what purports to be a 
photostatic copy of a check dated xlugust 29, 1952, in the amount of 
$5,000, from the National Publishing Co. to Leslie Shomo. It ap- 
pears that you endorsed this check, according to the photostatic copy 
of it. I will ask you to examine it and see if you identify this as a 
photostatic copy of the check that you have been testifying about, and 
whether you did endorse it. 

(Document handed to witness.) 

(The witness conferred with his counsel.) 

Mr. Klenert. Mr. Chairman — I was going to tell you, sir, I wasn't 
going to make any point of that 

Mr. Kennedy. Give him the check and the other endorsement. 



3464 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. Apparently we handed you the wrong endorsement 
slip. 

(Document handed to witness.) 

Mr. Klenert. I am not making a point of the money in question as 
having been receiver, but I do not believe that the name of Lloyd 
Klenert as it appears on this check is my handwriting, sir. 

The Chairman. You do not believe that is your signature ? 

Mr. Klenert. No, sir. 

The Chairman. Did somebody else endorse it for you ? 

Mr. Klenert. It reads "Leslie C. Shomo, credit account of Lloyd 
Klenert." It is not my signature, sir. 

The Chairman. Did you receive the money ? 

Mr. Klenert. Yes, sir. 

The Chairman. Thank you. 

Mr. Kjennedt. What other loans did you receive ? 

The Chairman. The check may be made exhibit 53. 

(The document referred to was marked "Exhibit 53," for refer- 
ence and will be found in the appendix on p. 3590.) 

Mr. Klenert. Would you relate it back to me ? 

Mr. Kennedy. You received $5,000 from Hilleary, $5,000 from Na- 
tional Publishing Co., $5,000 from Young, of the Rumanian Inn, and 
then you received the sixteen thousand-odd-dollars from Rosenblatt, 
Yudelevit, and Fisher. Were there any other loans, any other 
moneys ? 

Mr. KJLENERT. Not loans. At that time, I was under the imjDression 
that I was in receipt of a loan of $10,000, but I related to your investi- 
gators that actually I received $10,000 from my wife Eleanor. 

Mr. Kennedy. And that was in cash ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. She came up with $10,000 in cash ? 

Mr. Klenert. She gave me $10,000 in cash, yes, sir. 

Mr. Kennedy. That is $10,000 in cash that vou hadn't known she 
had? 

Mr. Klenert. I caa relate to you the occurrence. I have already 
related it to the investigators. 

Mr. Kennedy. But this was $10,000 that you were not aware of? 

She suddenly came up with $10,000 in cash, is that right ? 

Mr. Klenert. She originally told me that it had come from her 
mother. 

Mr. Kennedy. And you found ultimately that it was her own 
money ? 

Mr. Klenert. She told me, she explained to me that over the years, 
while I had been away she had felt very insecure because of the nature 
of my work, had accumulated this money, and then was concerned that 
I might deem it disloyalty on her part — the fact that she had withheld 
the possession of it — and attributed it to the fact that she had received 
it — it was going to be given to us by her mother. But, in effect, finally 
she told me that she had accumulated it on the side while she had 
worked. 

Mr. Kennedy. Where had your wife kept this money ? 

Mr. Klenert. I don't know. I didn't ask her where she kept it. 

Mr. Kennedy. All right. Did you receive any other moneys during 
this August period ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3465 

Mr. KiENERT. Sometime around the same period, I am not quite sure 
whether it was August but I know it was concernino- my new home, my 
mother loaned me $10,000. Whether it was actually August, June, 
July, or August, it is hard to say after a 5-year time. 

Mr. Kennedy. That was cash, too i 

Mr. KixENERT. Yes. 

Mr. Kennedy. Your mother came up with $10,000 in cash, your wife 
came up with $10,000 in cash, and Mr. Valente's wife came up with 
$10,000 in cash. 

Did you receive any other money ? 

^Lv. Klenert. That is all I can recall or remember. 

Mr. Kennedy. What about Mr. Leff ? 

Mr. Klenert. Mr. Leff — — 

Mr. Kennedy. He is president of the National Spinning Mills? 

Mr. Klenert. I received no moneys from him, no. 

Mr. Kennedy. Did you go to him for a loan ? 

Mr. Klenert. I went to him and asked him if he could possibly ar- 
range to have some bank loan me money, or aid and assist me in getting 
a loan from a bank. 

Mr. Kennedy. How much did Mr. Leff arrange for you to borrow ? 

Mr. Klenert. Mr. Letf took me to a gentleman at the Manufacturers 
Trust Co., I believe is the name of the bank. His name I do not recall, 
and this gentleman arranged for me to receive a loan in that amount. 

The Chairman. How much ? 

Mr. Klenert. $15,000. 

The Chairman. $15,000? 

Mr. Klenert. Yes, sir. 

(At this point, Senator Goldwater withdrew from the hearing 
room. ) 

Mr. Kennedy. What is Mr. Leff 's business ? What is his position ? 

Mr. Klenert. Mr. Leff is — I don't know his title. You may call 
him president of the National Spinning Co., or the National Worsted 
Mills. There are several different names for the particular enterprise. 
I am not certain. 

Mr. Kennedy. That is Mr. Philip Leff, L-e-f -f ? 

Mr. Klenert. Yes. 

Mr. Kennedy. And he has room 4027, 315 Fifth Avenue, Empire 
State Building? 

Mr. Klenert. I can say it is the Empire State Building. 

Mr. Kennedy. And there is a plant at Jamestown, N. Y. ? 

Mr. Klenert. There is a plant there. 

Mr. Kennedy. A textile plant ? 

Mr. Klenert. It is. 

Mr. Kennedy. And the contract Mr. Leff has and that company has 
is with the United Textile Workers of America ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. And that is the union of which you are secretary- 
treasurer ? 

Mr. Klenert. Yes. 

Mr. Kennedy. They have about 700 employees ? 

Mr. Klenert. I think that would be a good approximation. 

Mr. Kennedy. 700 employees that are members of the union ? 

Mr. Klenert. Yes. 

Mr. Kennedy. Is that right ? 



3466 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Klenert. Yes. 

Mr. Kennedy. And he arranged for this loan of $15,000 for you ? 

Mr. Klenert. No, all he did was to bring me, to my knowledge all 
he did — I told him I wanted to borrow this money. He took me to 
this banker, and at that time, I don't recall the entire conversation, but 
he sjjoke of me very highly, because I think he meant it, he spoke of 
our long friendship and his regard and personal feelings for me, and 
also told the banker that he believed I would discharge any obligation 
which I assumed. 

Mr. Kennedy. Did he become a guarantor of your note ? 

j\lr. Klenekt. To my knowledge at tliat time, no. 

Mr. Kennedy. Did he any time ? 

Mr. Klenert. I have subsequently found out that he did guarantee 
to the bank that if I defaulted in any way, that he would make good. 
Of course, that did not happen. I made good. 

Mr. Kennedy. So altogether during that August period, you came 
up with $66,650, is that right ? $5,000 from Hilleary, $5,000 from the 
National Publishing Co., $16,650 from Rosenblatt, '$15,000 from the 
bank. 

Mr. Chairman, the records of the bank show that Mr. Leff went on as 
guarantors' 

1 lie Chairman. You will admit that he guaranteed your loan, will 
you? 

LIr. Klenert. Yes, sir. There is no sense in consuming your time 
with the formality of handing that back and forth. I am aware of 
that f iact of a very recent time. 

The Chairman. All right. 

Mr. Kennedy. And $5,000 that you received in cash from Mr. 
Young; $10,000 in cash from your mother, $10,000 in cash from your 
wife. That makes a total of $66,650. Is that correct ? 

Mr. Klenert. There were other moneys that I also came into in and 
around that time. I think I received about — and I am guessing now — 
I think I received about $4,000 arising out of the refinancing of my 
Boston Avenue home prior to that date, and I know that the City 
Bank granted me a loan 

The Chairman. What bank? 

Mr. Klenert. The City Bank, sir. The amount of that loan at 
this time I don't know. It was about $5,500 or $6,000 of a loan on 
some insurance. 

JMr. Kennedy. That was in May, was it not? That wasn't in 
August. 

Mr. Klenert. It just flashed across my mind that all throughout 
that period, since you mentioned the question of raising some monej', 
those others came to my mind, Mr. Kennedy. 

Mr. Kennedy. I am talking about raising the money once you had 
submitted this false ly5-page report to Mr. George Meany and then 
you went out to raise this money. This money that you were just 
talking about, the $5,500 or $6,000, was raised in May 1952, was it 
not? We have the records here. 

Mr. Klenert. I see. 

Mr. Kennedy. And you used as collateral for that loan what docu- 
ments, or what did you use for collateral ? 

Mr. Klenert. At the City Bank loan ? 

The Chairman. Yes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3467 

Mr. Klenert. I think I used my personal insurance policy, and was 
authorized to use the other policy owned by the organization at that 
tune, with the understanding that the ownership of the policy should 
remain in the possession of the union. 

Mr. Kennedy. The loan was made on May 14, 1952, and there were 
two policies, one for $10,000 and one of $26,418 put up as collateral. 
That $26,000 was the one the union had on your life ? 

Mr. Klenert. I am sure the larger one was that, yes. 

The Chairman. How about the refinancing ? What period was that 
done in,^where you got the $1,000. Was that back in May ? 

Mr. Klenert. The date escapes me. I don't know that date, sir. 

Then there was other refinancing on the new home which also 
brought in about $8,500 or $9,000, later on. What date that was, I 
don't recall. Maybe the investigator have that date, also. 

Mr. Kj:nnedy. June of 1953, Mr. Chairman. 

The Chairman. That was a year later. That is not in this period. 

Mr. Klenert. Well, I think that they have a clearer picture of it 
than I have. 

The Chairman. Tliat is not in the period here that you have been 
interrogated about. I do not see that it has anything to do with this 
matter. 

Mr. Klenert. When I start thinking about raising money, they 
seem to all flow in together. That is why I brought them to your 
attention. 

The Chairman. I imagine that you borrowed that to repay some- 
thing else. 

Mr. Klenert. Well, it has 

The Chairman. I do not know that. I am talking about these 
loans. You may have had these finances to make payments on some 
of those. 

Is there anything further? 

Mr. Kennedy. What I do not understand is that according to the 
records you and Mr. Valente came up in August of 1952 with $111,150 
that you borrowed or found that your wife had or your mother had ; 
that $40,000 of this was cash. If all that was necessary to pay back 
was this $57,000, why did you borrow so much money during this pe- 
riod of time ? 

Mr. Klenert. I think we were endeavoring to raise money, I think 
originally, from any and all sources in behalf of the organization as 
well, and to arm ourselves with money to handle any emergency situa- 
tions that might develop, personally, organizationally, and we re- 
quested loans from any 

Mr. Kennedy. These are personal loans ? 

Mr. Klenert. From any and all sources. All these loans were forth- 
coming around the same time. We assumed all those loans at that time. 
Mr. Kennedy. That still does not answer the question. I am talk- 
ing not about the organization's loans. I understand the organization 
was able to borrow $200,000 during this period of time. 

Mr. Klenert. Well, remembering my thinking, then, it wasn't in- 
conceivable at all that if the organization had required some of this 
money, even though I had assumed personal obligations for it, I 
would have given it to the organization. 



3468 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Kennedy. The organization didn't need it. The organization 
had been able to borrow through Mr. John L. Lewis, had it not, 
some $200,000? 

Mr. Klenert. Through the National Bank of Washington. 

Mr. Kennedy. Wasn't that with the assistance of Mr. Lewis? 

Mr. Klenert. Yes. I think he was the prime factor in getting 
the bank. 

Mr. Kennedy. So it wasn't necessary at that time for the union to 
have the money, but you and Mr, Valente went out and raised in a 
short 3 weeks, $111,150, according to your testimony. 

Mr. Klenert, Yes. As I recall it, the Lewis loan was in the same 
period of time, and all these people and all these contracts were made 
for raising money. There was a fusion there. 

Mr. Kjennedy. Did you think you had a good arrangement when 
you raised, for instance, this $33,300 that you arranged through Rosen- 
blatt, and arranged through Mr, Quigley originally ? 

Mr. EIlenert. Do you mean financially advantageous ? 

Mr, Kennedy. Yes. 

Mr. Klenert. I did not give it thought, then. It did occur to me we 
asked Mr. Quigley to use his good offices to raise money. I assure you 
that I wasn't familiar with the details — I am more familiar with the 
details of it today than I was then, 

Mr, Kennedy, Do you know what arrangements, financial arrange- 
ments, you made on that ? Do you have the details down ? 

Mr, Klenert, Now? 

Mr. Kennedy, Yes, 

Mr, Klenert. Hearing you today talking here with Mr. Valente 
gave me the impression that we actually paid $36,000 and received 
$33,000. 

Mr. Kennedy. Mr. Chairman, maybe we could put all of those fig- 
ures on this particular loan into the record through a staff investigator. 

If there is anything incorrect about it, Mr. Klenert can correct it. 

If Mr. Klenert can step aside for a moment, I will call Mr. Fisher 
and Mr. Yudelevit who will testify briefly, as to what they did. We 
will then put the figures in, 

Mr, Kennedy, You are Mr, Yudelevit ? 

Mr, Yudelevit, Yes. 

(Present at this point in the proceedings were : Senators McClellan 
and Curtis,) 

The Chairman. Gentlemen, be sworn, please. 

Do you and each of you solemnly swear that the evidence you shall 
give before this Senate select committee shall be the truth, the whole 
truth, and nothing but the truth, so help you God ? 
Mr, Yudelevit. Yes, sir. 
Mr, Fisher. Yes, sir. 

TESTIMONY OF LOUIS YUDELEVIT AND JOHN W. FISHER 

The Chairman. Mr. Yudelevit, will you state your name, your 
place of business, and your residence ? 

Mr. Yudelevit. Louis Yudelevit, 318 Southern Building, 5415 Haw- 
thorne Place N^Y., being where I reside. 

The Chairman. Wliat is your business or occupation ? 

Mr. Yudelevit, Real estate broker. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3469 

The Chairman. And the other gentleman ? 

Mr. Fisher. John W. Fisher, the same address, and I live at 1868 
Columbia Koad, and I am a real estate broker. 

The Chairman. Gentlemen, you know the rules with respect to 
counsel.^ Do you waive the right of counsel when you testify ? 

Mr. YuDELEviT, Yes, sir. 

Mr. Fisher. Yes, sir. 

The Chairman, Thank you. 

Mr, Kennedy, you may proceed. 

Mr. IvENNEDT.^ Mr. Fisher, you received some information m August 
1952 that Mr. Klenert and Mr. Valente were anxious to raise some 
money ? 

Mr. Fisher. Yes. At that time I didn't know the gentleman's 
name involved. As a matter of fact, the first time I ever saw him was 
last Friday, The only reason I recognized him was his picture was 
in the paper Thursday, 

I received a call from Mr, Quigley about negotiating a collateral 
loan, the underlying security being second trust notes and chattels on 
automobiles. I was told that the fee there was $2,000 because it was 
an unbankable proposition, 

Mr, Kennedt, "V^Hiat does that mean, unbankable ? 

Mr, Fisher, Well, you couldn't go to a bank, 

Mr, Kennedy, Why not ? 

Mr, Fisher, They don't deal in second trusts, I think you are pro- 
hibited by the Federal Keserve Board, and insurance companies or 
building associations, of course, don't make loans on second trusts, 
and this had chattels on it also. The fee there was $2,000. 

Mr, Kennedy, What does that mean, the fee ? 

Mr, Fisher, The discount or commission for negotiating the sale of 
the note, 

Mr, Kennedy, That was going to come to you, is that it ? 

Mr, Fisher, Yes. 

Mr. Kennedy. If you could arrange it ? 

Mr, Fisher, If I had been able to negotiate it — I did try — then the 
entire $2,000 would have been mine, I had some conversation with 
Mr, Quigley, He has an investment company. He was anxious to get 
out, I had agreed that if I negotiated the loan and made the $2,000, 
that I would give him back $1,000 on account of his investment. The 
American Co, still owes him anywhere from $1,300 to $1,500, 

Mr, Kennedy, Go ahead. 

Mr, Fisher, As a matter of fact, this transaction was an American 
Co, transaction, 

Mr, Kennedy, What happened ? 

Mr, Fisher, Well, I could not negotiate the loan, and I asked Mr. 
Yudelevit to assist me in disposing of it, with the agreement that I 
would get two-thirds of the $2,000 and he would retain one-third. 
That is the usual practice in cooperating brokers, 

Mr, Kennedy, So what did you do, Mr, Yudelevit ? 

Mr, Yudelevit. I negotiated the sale of the note. 

Mr. Kennedy. How did you do that ? 

Mr. Yudelevit. By going through a client of mine and submitting 
it to him. 

]Mr. Kennedy, "N^^iat was his name ? 

S0330— 57— pt. 9 17 



3470 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. YuDELEViT. Sol Rosenblatt. 

Mr. Kennedy. What arrangements were made? 

Mr. YuDELEViT. I don't understand what you mean. 

Mr. Kennedy. He was going to take the note ? 

Mr. Yudelevit. He agreed to buy the note. 

Mr. Kennedy. At what price? What was he going to put up ? How 
much money was he going to put up ? 

Mr. Yudelevit. I don't recall the amount of the money, but I know 
the check he gave me I transferred over to the Mutual Title Co., and 
the amount of that check at this ]Dresent time I do not remember. All 
I remember was that I got my one-third commission out of it which 
was about $667.66. 

Mr. Kennedy. Did you have anything further to do with it after 
that? 

Mr. Yudelevit. I put it in my pocket or put it in the bank. 

Mr. Kennedy. T\^iat about Mr. Rosenblatt ? Is he in that business ? 

Mr. Yudelevit. No. He is in the clothing business. 

Mr. Kennedy. He is in the clothing business ? 

Mr. Yudelevit. That is a little side investment for him. 

Mr. Kennedy. Do you know how much money was put up by him ? 
Do you know the total amount ? 

Mr. Yudelevit. No. I don't recall the exact amount. 

Mr. Kennedy. You don't know how much vou requested from him ? 

Mr. Yudelevit. No, I don't remember it. 

Mr. Kennedy. Was he the first person you went to ? 

Mr. Yudelevit. The only person I went to. 

Mr. Kennedy. Who prepared the note ? 

Mr. Yudelevit. The title company. 

Mr. Kennedy. The Mutual Title Co. ; Mr. Quigley ? 

Mr. Yudele\t[t. Mr. Quigley's office. 

The Chairman. Is there anything further ? 

Mr. Kennedy. Do you have anything to add to this, Mr. Yudelevit ? 

Mr. Yudelem:t. I got one-third. 

Mr. Kennedy. And you gave a half to Mr. Quigley ? 

Mr. Yudelevit. I gave a half to apply on his investment ; yes, sir, 

Mr. Kennedy. So each one of you got a third of the $2,000, is that 
right? 

Mr. Yudelevit. Yes, sir. 

The Chairman. Thank you, gentlemen. You may stand aside. You 
may be excused. 

]Mr. Kennedy. Mr. Ralph Mills will testify as to Avhat figures were 
involved. 

(Members present at this point in the proceedings : Senators McClel- 
lan and Curtis.) 

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

Mr. Mills. I do, sir. 

TESTIMONY OF RALPH W. MILLS 

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

Mr. Mills. My name is Ralph W. Mills. I am a staff member of this 
committee, and my permanent residence is in Tampa, Fla. 



IMPROPER ACTIVITIES IX THE LABOR FIELD 3471 

The Chairmax. All right, Mr. Kennedy, 3^011 may proceed. 

Mr. Kennedy. Mr. Mills, you made a study of this transaction we 
have just been discussing before the committee ? 

Mr. Mills. Yes, sir ; I have. 

Mr. Kennedy. And you know the amounts of money involved in the 
transaction ? 

Mr. Mills Yes, that is correct. 

Mr. Kennedy. Could you cite those to the committee based on your 
review of the records ? 

Mr. Mills. On August 25, 1952, Mr. Eosenblatt and his associates 
advanced, by check prepared by Mr. Eosenblatt. the sum of $33,300, 
which ultimately found its way to the benefit of Mr. Klenert and Mr. 
Valente. 

In exchange for that advance of the $33,300, a $36,000 promissory 
note was signed by Mr. Valente. Mr. Klenert, and their wives. It was 
received by Mr. Rosenblatt to secure the loan. The note was repayable 
in 1 year at $3,000 per month, and it bore an interest rate of 6 percent. 

The CiiAiRMAN. How was the note secured ? 

Mr. Mills. The note \Aas secured not by a deed of trust. It was 
secured in this manner: 3Ir. Klenert and Mr. Valente pledged the two 
deeds of trust that we have l)een testifying about previously, one of 
tliem on Mr. Klenert's properly in Kock Creek Hills for $15,000. and 
the note was payable to Laida Kreuz. and that Avas covered by the deed 
of trust, and the note from ]\Ir. Valente was in the amount of $10,000, 
also payable to Laida Kreuz. and also protected by a deed of trust of 
record. 

Then there was a third deed of trust that was prepared at the time; 
that is, as of the time of tliis $33,300 loan. That deed of trust was in the 
amount of $10,000, and it was signed by Mr. Klenert and his wife. 
That deed of trust Avas to protect this $10,000 note made ])ayable to 
Laida Kreuz who, by that time, had become Laida Bushnell. She had 
gotten married. 

That deed of trust was against the former residence of Mr. Klenert 
in 'J'akoma Park. 509 Boston Avenue. 

They also pledged the titles for three automobiles. One was 
a 19.52 Chevrolet; one was a 1952 Cadillac: and the third Avas a 1952 
Foi'd club coupe. 

Mv. Kennedy. The money that Mr. Klenert and Mr. Valente actual- 
ly received was $33,300 ? 

Mr. JNIiLLS. Yes, sir. 

Mr. Kennedy. And the}' agreed to pay back $36,000, is that right ? 

Mr. Mills. That is correct ; yes. sir. 

]Mr. Kennedy. What payments in addition to that were required 
froni ]Mr. Klenert and Mr. Valente ? 

Mr. Mills. ^Vell, immediately after signing the $36,000 note. $2,700 
was taken olT of the top as a discount. 

Mr. Kennedy. Go ahead and give me all of the figures. 

Mr. Mills. All right. 

And then, finally, $663.02, which was the 6 percent interest for the 
period of the loan was made. 

Mr. Kennedy. When was the loan paid back ? 

Mr. Mills. The last pavment on the loan was February 16, 
1953. 



3472 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. So the loan was outstandinp^ for 6 months: is that 
right? 

Mr. Mills, Yes, that is right, approximately. It was a little less 
than that. 

Mr. Kennedy. The $36,000 was paid, is that right ? 

Mr. Mills. Yes. 

Mr. Kennedy. And then 6 percent interest, which amounted to 
$663.02? 

Mr. Mills. That is right. 

Mr. Kennedy. And then the $2,000 commission to Yudelevit, Fish- 
er, and Quigley ? 

Mr. Mills. Cut up equally between them. 

Mr. Kennedy. A $900 commission to Mr. Parker Nolan? 

Mr. Mills. That is correct. 

Mr. Kennedy. Making a total that they paid above the amount they 
received of $6,662.02, is that right? 

Mr. Mills. That is correct. 

Mr. Kennedy. Making a cost to them of about 19 percent, is that 
right. 

Mr. Mills. That is about right ; yes sir. 

Mr. Kennedy. Are you familiar with the law, usury? 

Mr. Mills. Yes, sir ; I am. 

Mr. Kennedy. Is that involved in this loan ? 

Mr. Mills. Well, in my opinion, yes. 

Mr. Kennedy. The note is outstanding at $36,000, and they only bor- 
rowed $33,000. Does that take it out of the sphere of violating the law 
of usury ? 

Mr. Mills. I had thought that it did. I understand that there may 
be an exception to that where there is a second deed of trust, which 
was involved in this case. This was a second mortgage, in effect, with 
their security. 

Mr. Kennedy. But the result was that Mr. Klenert and Mr. Valente 
paid about 19 percent interest? 

Mr. Mills. Yes. It vastly exceeded the normal legal rates of 
interest. 

The Chairman. Very well, you may stand aside. 

TESTIMONY OF LLOYD KLENERT, ACCOMPANIED BY COUNSEL, 
JAMES M. McINEKNEY— Resumed 

(Members present at this point in the proceedings: Senators Mc- 
Clellan and Curtis.) 

Mr. Kennedy. Mr. Klenert, I would like to have you explain if you 
had all of this other money that was available, including cash that 
you could borrow from these other sources, why you made such an ar- 
rangement as this, if all the other cash was legitimate cash that had 
come into your possession legitimately. 

Mr. Klenert. Specifically you want to know 

Mr. Kennedy. Why you would make such an arrangement as this, 
of paying $6,263.02; approximately 19 percent interest. 

Mr. Klenert. All I can tell you is what I told you before, Mr. 
Kennedy, that we had endeavored to raise money from all sources pos- 
sible, and whatever avenues were open to us in the securing of loans, 
we took at that time. 



I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3473 

The Chairman. Were you in a desperate situation for money when 
you would go out and make an arrangement like this which would 
cost you about 19 percent interest ? 
Mr. Klenert. I don't believe we were motivated out of desperation. 
The Chairman. I beg your pardon ? 

Mr. Klenert. We were not motivated out of desperation, Mr. Chair- 
man. 
The Chairman. Well, were you motivated out of urgency ? 
Mr. Klenert. We wanted to raise as much money as possible. 
The Chairman. Well, would you have made another borrowing at 
19 percent interest, if you could have found it ? 

Mr. Klenert. I don't think I ever would borrow money at 19 per- 
cent interest. I just found that fact out here today. 

The Chairman. You see what this clearly indicates. I say indicates, 
but I mean it at least needs explanation. You had to get this money 
back into the union — it could be interpreted that way — you had to get 
this money back into the union treasury, and you had to go out and 
agree to pay very high rates of interest in order to get the money. That 
is what it indicates on the face of it, if one wants to give it that inter- 
pretation. 

Is there any explanation you can make ? Apparently you say you 
thought something might happen where you would need a lot of 
money and you went out to borrow where 7/ou could get it. 
Mr. Klenert. These loans came through in August. 
The Chairman. Was that right after you tried to borrow money 
from Mr. INIeany and he had challenged the validity of the audit 
report ? 

Mr. Klenert. That incident occurred, but I recall going to other 
sources, many other people, other unions, and asking for loans and 
financial assistance and support so that we would not lose momentum, 
and so that we could put on more men. It was all during that period. 
We didn't restrict ourselves to going to these men who gave us loans or 
George Meany or any other individual. 

The Chairman. I am not saying that. You did not go to any of 
these other people, though, until after you went to George Meany, 
did you ? 

Mr. Klenert. I think that some of these people were — I don't re- 
call exactly which was first. 

The Chairman. Have you mentioned a single loan here that you 
finally got where you had made arrangements for it before you went 
to Mr. Meany and he challenged the validity of your auditors' re- 
port ? Is there a single one of these loans that you have identified that 
was obtained before ? 

Mr. Klenert. These loans came through, perhaps, after our con- 
ference with _Mr. Meany, as well as perhaps after our conference with 
other people in the labor movement. But whether we asked for these 
loans before we saw Mr, Meany and they didn't clear through until 
after, I do not know, and I could not say and be definite about it, 
Mr. Chairman. 

The Chairman. I think, according to the chief counsel here, and I 
have not checked it personally, that this could be verified, that all of 
these loans came through, if you want to use that term, after Mr. 
Meany had challenged the validity of your auditor's report. 
Mr. Klenert. I have no comment on that, sir. 



3474 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. You would not say that is not true, would you? 

Mr. Klenert. I don't know the actual sequence of events at this 
time after a 5-year period, sir. 

The Chairman. All right. 

Mr. Kennedy. Before we go into a more recent period, I want to 
ask you about some of your bank accounts, particularly a bank ac- 
count at the Manufacturer's Trust Co. in New York City. You are 
familiar with that ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. After you received this loan of $15,000 in August, 
vou deposited that and opened up a bank account at the Manufacturer's 
Trust Co., is that right ? 

Mr. Klenert. I think they created some account there in that 
amount in my name. 

Mr. Kennedy. I think the record shows that the account was opened 
on August 27, 1952, with a deposit of $14,756.68. On September 10, 
1952, >ou deposited in cash in that bank account, $4,300. Will you tell 
the committee where you got that cash ? 

Mr. Klenert. I don't recall the incident at all, Mr. Kennedy. 

Mr. Kennedy. On September 11, 1 day later, you deposited $3,000 
in cash in that bank account. Can you tell the committee where you 
got that cash? 

Mr. Klenert. I don't recall that at this time. 

Mr. Kennedy. On September 12, the next day, you deposited $1,200 
in cash. Can you tell the committee where you got that money ? 

Mr. Klenert. September of 1952 ? 

IMr. Kennedy. September 10, $4,300 ; September 11, $3,000 ; Septem- 
ber 12, $1,200. Will you tell the committee where you got all of that 
cash in September ? 

Mr. Klenert. It might have been^I can't recall. It might have 
been part of some of tliis money that I had already borrowed, and 
I might have been in New York and instead of carrying it around I 
might have deposited it there and left it there. 

Mr. Kennedy. Four days later, Mr. Klenert, you deposited in that 
same bank account $5,000 in cash, September 16, 1952. Can you tell 
the committee where you got that cash ? 

Mr. Klenert. I am hazarding a guess. It would just be 

Mr. Kennedy. You must know. It is about $13,000 in cash that 
you deposited within a 6-day period in September. Where did you 
get all that cash ? 

Mr. Klenert. The only thing that comes to my mind is that some 
of the money tliat I had which you have ah-eady outlined, instead of 
carrying it with me, I put it into the bank. That is about all I could 
think off. offhand. It is very difficult to i-emember back almost 5 years 
ago. 

Mr. Kennedy. Yes. On October 24, 1952. in that same bank ac- 
count, yon deposited another $4,(»00 in cash. Where did you get that 
from ? 

Mr. Klenert. It occurs to me— I don't knoAv. Are there withdraw- 
als incident to this? I might have been taking the money out and 
putting it back in. I don't know. I can't sit here and guess at it. 

Mr. Kennedy. Let me tell you what else you did. That is October 
24, $4,000. On November 12, 1952, you deposited $9,500 in cash. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3475 

Mr. Klexert. If you would care to, if I can look at the statement 

]Mr. Kexnedy. I will show it to you. 

]Mr. Klenert. These figures give me no association. 

Mr. Kennedy. We find withdrawals during this period of time. 
And then on January 16, 1953, there was a cash deposit of $2,150 and 
a check deposit of $1,000, making a total in there in 1 deposit of $3,150, 
of which, as I said, $2,150 was cash. 

During that period of time, then, from September 10, 1952, through 
January 16, 1953, you deposited, according to our records, $29,150 in 
cash in that bank account. 

(The witness conferred with his counsel.) 

Mr. Kennedy. Can j'^ou tell the committee where you got all of 
that cash ? 

Mr. Klenert. Are there no records of withdrawals there? 

You throw these figures, and I haven't retained sequence dates, 
amounts. If I had a sheet before me and could see something, some- 
thing might come to my mind on it. 

The Chairman. The Chair presents to you what purports to be six 
photostatic copies of deposit slips in this bank, relating to the items 
that vou have been interrogated about bv counsel, beginning with 1 
dated September 10, 1952, a deposit at the time of $4,300 ; 1 of Sep- 
tember 11, the next day, for $3,000; 1 for September 12. the following 
day, for $1,200: 1 for September 16 in the amount of $5,000; 1 for 
October 24 in the amount of $4,000; and 1 for November 12 in the 
amount of $9,500. 

The deposit slips, if correct, indicate that this was all in cash. 

Would you examine those and see if you identify them, and also 
state in whose handwriting is the name Lloyd Klenert at the top of 
each deposit slip. 

(Documents handed to witness.) 

( The witness conferred with his counsel.) 

Mr. Klenert. May I have the bank statement that corresponds to 
this time or perhaps the entire bank statement which might give me 
some indication to refresh my memory ? 

The Chairman. I do not have your bank statements. All we have 
are these deposit slips. 

Mr. Kennedy. Wait a moment. Here is a copy of it, a worksheet. 

This is a copy that the investigator made. It had to be taken off 
of microfilm. 

The Chairman. He would not be able to identify this. 

Mr. Kennedy. But it might help him. 

The Chairman. I may state for your information that these items 
here in the statement were prepared by members of the staff from 
microfilm records in the Manufacturers Trust Co. This may help you 
some. If it will, you may look at it. It is not in evidence as yet. 

I would like to ask you, before you proceed, to state if the name 
Lloyd Klenert on those deposit slips is in your handwriting. 

Mr. Klenert. It is printing, but I would safely say that it was 
my printing ; yes. 

The Chairman. Is it your printing ? 

Mr. Klenert. Yes. 

The Chairman. You may examine that statement and see if it 
helps you in any way. 



3476 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Klenert. Thank you. 

(Document handed to witness.) 

(The witness conferred with his counsel.) 

Mr. Klenert. Senator, I don't know if I am reading this cor- 
rectly, but I see here a diminution, not a continual growth in the 
account. 

The Chairman. A what? 

Mr. Klenert. I see that this balance gets lesser and lesser and not 
greater and greater. It occurs to me that this money was put in here 
and then — on the left, this must be checks issued against it. 

The Chairman. The Chair has not looked at it. Let me see it a 
moment. 

Mr. Klenert. The highest credit there is about eight or nine thou- 
sand dollars, not $29,000. 

The Chairman. That could be true. 

Mr. Kennedy. I am sure there were withdrawals, as you deposited 
your cash. Where did you get the cash ? 

Mr. Klenert. Didn't you say there were no withdrawals made ? 

Mr. Kennedy. No. I said there were withdrawals. In fact, I think 
you pad the $15,000 loan to the Manufacturers Trust Co. Certain of 
the money went to Mr. Valente and some to the Riggs National Bank, 
and some to Shomo. All we are trying to find out is where the cash 
came from that you put in there in order to make these withdrawals. 
That is all. 

Mr. Klenert. The cash must have come from the other moneys that 
I raised, as I explained before. 

Mr. Kennedy. Wliy would you wait until this time to start deposit- 
ing in a bank account, and why would it be in such amounts as you 
did in this case ? 

Mr. Klenert. I have no recollection of that, Mr. Kennedy. In fact, 
I must confess, all these figures instead of clarifying me have me per- 
haps more confused and vague than I was at the outset. I am very 
vague. 

Mr. Kennedy. You weren't taking any money from the union dur- 
ing the fall of 1952, cash from the union, and depositing it in your 
account ? 

ISIr. Klenert. Are you referring to these ? 

Mr. Kennedy. Yes. 

Mr. Klenert. No. 

Mr. Kennedy. You were not ? 

Mr. Klenert. No. 

Mr. Kennedy. You never did anything like that ? 

Mr. Klenert. I don't recall anything like that. 

Mr. Kennedy. None of this money that you deposited in your bank 
account as cash came from the union ? 

Mr. Klenert. I have no recollection of that. It might have been 
other loans which have escaped me, which I had received and deposited 
and paid back. I have no recollection on it at all. 

The Chairman. Let me get the record straight at this point on 
those deposit slips. Do you identify your signature or your printed 
name on the deposit slips that you have examined ? 

Mr. Klenert. These here, sir ? 

The Chairman. Yes. 

Mr. Klenert. Yes, I would say that was my printing, sir. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3477 

The Chairman. I hand you one more, dated January 16, 1953, show- 
ing a deposit in the amount of $3,150, of which $2,150 is in cash. 
See if you identify also your printed name on this deposit slip. 

(Document handed to witness.) 

(The witness conferred with his counsel.) 

Mr. Klenert. That looks like my printing, sir. 

The Chairman. iVU right. Those deposit slips may be made ex- 
hibit No. 54-A, B, C, D, and so forth. 

(The documents referred to were marked "Exhibits 54-A, B, C, D, 
E, F, and G," for reference and may be found in the files of the select 
committee.) 

Mr. I^NNEDY. If you did not take any cash from the union and 
deposit it in your bank account, then have you ever taken money from 
the union to pay your own personal bills, other than your salary, 
and other than your legitimate hotel bills? Have you taken any 
money from the union in order to pay for your own personal expenses ? 

Mr. Klenert. I have been allowed a personal expense account. 

Mr. Kennedy. Let us go through that. What did you receive as 
a salary? Tell me what you received as a salary, starting back in 
1948. What salary did you have ? 

Mr. Klenert. I think the constitution has it there. I think you 
have a copy of it. It would be more accurate than my memory. 

Mr. Ivennedy. You don't remember that ? 

Mr. Klenert. Whatever the constitution says. 

Senator Curtis. Mr. Klenert, since 1950, up to the present time, 
have you had any income other than your compensation from the 
union ? 

Mr. Klenert. No, sir. 

Senator Curtis. No other income from any source ? 

Mr. Klenert. No, sir. 

Senator Curtis. Of the debts that you created, that you obligated 
yourself for back there in 1952, are those all paid now ? 

Mr. Klenert. No, sir. 

Senator Curtis. How much do you still owe ? 

Mr. Klenert. If you will bear with me, sir," I will try to capitulate 
as quickly as possible. 

Senator Curtis. I want you to exclude the balance of your pay- 
ments on your house. 

Mr. Klenert. Yes, sir. 

I have $30,000 — in round figures, about $30,000 worth of debts aside 
from my house. I will mention it to you for your information. There 
is a $3(),000 first trust on it now. I have to raise that money now be- 
cause of other personal obligations. I think it is about $24,000 now 
also on that debt. 

Senator Curtis. I mean besides your house, what is your present 
indebtedness ? 

Mr. Klenert. About $30,000. A little in excess of $30,000. 

Senator Curtis. To whom do you owe that ? 

Mr. Klenert. I owe $5,000 to Mr. Young, the same amount to Mr. 
Hilleary. 

Senator Curtis. Wliois Mr. Young? 

Mr. Klenert. A friend of mine, sir. 

Senator Curtis. That is the one you borrowed the original $5,000 
from? 



3478 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Klenert. Yes. 

Senator Cuetis. And how much money do you owe him ? 

Mr. Klenert, Five. 

Senator Curtis. You still owe him five ? 

Mr. KJLENERT. Yes, sir. 

Senator Curtis. Who else do you owe ? 

Mr. Klenert. Mr. Hilleary. 

Senator Curtis. He is the man previously mentioned in the testi- 
mony? 

Mr. Klenert. Yes, sir. 

Senator Curtis. How much do you owe him ? 

Mr. Klenert. Five. 

Senator Curtis. Who else do you owe ? 

Mr. Klenert. I have over $iO,000 worth of loans at the National 
Bank, personal loans at the National Bank, and I still owe my mother 
her money. 

Senator Curtis. You still owe her ? 

Mr. Kjlenert. Yes, sir. 

The Chairman. It is apparent that we cannot conclude tonioht. 
Some of us have other official duties that are pressino; for attention. 
I am goin^ to recess the committee over until 10 o'clock in the mornino;. 

The chairman will not be able to be present, but when a quorum is 
present, when a quorum of the committee is present, they can select 
among themselves someone to act as chairman tomorrow and conduct 
the hearings in my absence. 

The witnesses who have not been heard today will return tomorrow. 

Mr. Klenert, you will return in the morning and resume the stand 
at 10 o'clock. 

Mr. Klenert. Yes, sir. 

The Chairman. The committee stands in recess until 10 o'clock in 
the morning. 

(Whereupon, at 4:50 p. m., the committee recessed, to reconvene 
at 10 a. m., Friday, July 26, 1957.) 

(Members present at the taking of the recess : Senators McClellan 
and Curtis.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



FRIDAY, JULY 26, 1957 

United States Senate, 
Select Committee on Improper Activities 

IN the Labor ok Management Field, 

Washington, D. C. 

The select committee met at 10 : 30 a. m., pursuant to Senate Reso- 
lution 74, agreed to January 30, 1967, in the canons room, Senate Office 
Building, Senator Carl T. Curtis, presiding. 

Present: Senator Sam J. Ervin, Jr., Democrat, North Carolina; 
Senator Carl T. Curtis, Republican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel to the select commit- 
tee; Ralph Mills, assistant counsel; Morton E. Henig, investigator; 
Alphonse F. Calabrese, investigator ; Ruth Young Watt, chief clerk. 

(Members of the select committee present at the convening of the 
session: Senator Curtis.) 

Senator Curtis. The committee will be in order. 

We will proceed w^ith the presenting in the record of certain staff 
material and other foundation documents. 

You may proceed, Mr. Kennedy. 

Mr. Kennedy. I will call Mr. Calabrese and Mr. Henig. 

Will you take the stand, please? 

TESTIMONY OF ALPHONSE F. CALABRESE AND MORTON HENIG— 

Resumed 

Senator Curtis. Each of you have been previouslv sworn, have you 
not? 

Mr. Calabrese. We have. 

Mr. Henig. We have. 

Senator Curtis. State your name to the reporter. 

Mr, Calabrese. Alphonse F. Calabrese. 

Mr. Henig. My name is Morton E, Henig. 

Senator Curtis. Both of you are members of the staff of this com- 
mittee ? 

Mr. Calabrese. That is right. 

Mr. Kennedy. You have made an examination of the books and rec- 
ords of the United Textile Workers of America, is that right ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. What books and records are still in existence? 

Mr. Calabrese, The books starting from April 1, 1954, to date. 

Mr. Kennedy, April 1, 1954 ? 

Mr. Calabrese. Yes, sir. 

3479 



3480 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. "Wliat happened to the records prior to that time? 

Mr. Calabrese. By resolution of 1954, there was passed by the ex- 
ecutive council a resolution, and it was agreed that all records other 
than those of a historical background would be destroyed except for 
the last 3 years. As I say, the reason given was because of a space 
problem in the headquarters of the union, that these records had to be 
disposed of. 

They kept the last 3 years of the records from the February 1954 
date, and each year, as the year passed, they would destroy the last 
year, so that they had 3 years of records. 

Mr. Kennedy. "\'\'lien did they decide to destroy these records, was 
it in 1954? 

Mr. Calabrese. Yes, sir. 

]\Ir. Kennedy. Was this at the same time that Mr. Valente and Mr. 
Klenert were under income-tax investigation ? 

Mr. Calabrese. It is approximately the same time. 

Mr. Kennedy. It was during 1954, is that correct ? 

Mr. Calabrese. Approximately, yes. 

Mr. Kennedy. Were Mr. Klenert and JNIr. Valente charged with 
certain payments that they had not made on their income tax ? 

Mr. Calabrese. Yes, that is correct. 

Mr. Kennedy. Do you have the amount of that ? 

Mr. Calabrese. Yes, I do. 

From our investigation and interrogation, we ascertained that Mr. 
Valente and Mr. Klenert's income-tax returns were investigated for 
the period 1950 to 1954 by the audit division of the Bureau of Internal 
Revenue. 

Mr. Kennedy. How much was involved ? 

Mr. Calabrese. After the investigation, they were — Mr. Valente 
was assessed $5,174.76. Mr. Klenert was assessed $7,609.10. Now, this 
was because the Audit Division ascertained that they were deficient in 
the fact that they had violated section 293 (a), and' this section deals 
with negligence or intentional disregard of the income tax rules, but 
no fraud, and 294 (d), this section dealing with failure to file or pay 
installments on estimated tax. 

Mr. Kennedy. Did the union ultimately pass a resolution which 
was offered by Joseph Jacobs, the attorney, that the union should pay 
that tax? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. This deficiency that Mr. Klenert and Mr. Valente 
had been assessed ? 

Mr. Calabrese. Yes. I might state at a meeting of the executive 
council, at the Hamilton Hotel, Wasliington, D. C, on March 27, 1956, 
Mr. Jacobs advised the executive council that Mr. Klenert and Mr. 
Valente had been subjected to an investigation by the Internal Revenue 
Department, and pursuant thereto they were assessed certain moneys, 
and it was suggested that the union pay their assessments. 

Mr. Kennedy. Did the union then pay at least part of it? Has the 
union already paid part of that ? 

Mr. Calabrese. Yes. On December 3, 1956, checks were made out to 
Lloyd Klenert and Anthony Valente in the amount of $2,000 apiece, 
which they show on their books for "alleviation of taxes," and that was 
the partial payment of the tax assessment. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3481 

Mr. Bjennedy. Now, let me ask you about what you found from the 
review of the records of the past 3 years. First, on the question of Mr. 
Klenert 

Senator Curtis. I hxive one thing before we leave that tax matter. 

Of the amount assessed against them, and paid, can you readily 
ascertain how much of that was tax and how much, if any, was penal- 
ties and interest ? 

Mr. Calabkese. I can ascertain that, Senator, but I would have to 
check the records on that. I camiot do it readily at this time. 

Senator Curtis. Would you supply it later, if you can ? 

Mr, Calabrese. Yes, I can. 

Mr. Kennedy. I want to go through with you briefly as far as the 
situation — as far as Mr. Klenert's and Mr. Valente's expenses from the 
union. Now, back in April of 1948 — do you have these figures with 
you? 

Mr. Henig. Just a moment, please. 

Mr. Kennedy. Prior to April 1, 1948, according to our records, do 
they show that Mr. Valente was making $11,333, and Mr. Klenert 
$10,81.5 a year? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. Is that including salary and a certain per diem that 
they wei'e getting ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. They would get the per diem no matter what the 
circumstances were; is that right? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. They would have their expenses above and beyond 
that ? 

Mr. Henig. Hotel expenses were paid by the union. 

Mr. Kennedy. Then there was a change made, on April 1, 1948, 
which brought Mr. Klenert's combined salary and per diem up to 
$15,040 a year, and Valente's to the rate of $16,040 a year. 

Mr. Henig. That is correct. 

Mr. Kennedy. That was passed April 1, 1948 ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. Now, in 1951, Mr. Valente was making $18,380 a 
year, and approximately the same time 

Mr. Henig. A little earlier, Mr. Klenert had raised per diem from 
about $145 a week up to $190 a week, that was in June of 1949, so it 
brought his salary up to, I think, $17,395 a year. In 1951, I think 
January of 1951, Mr. Valente's per diem 

Mr. Kennedy. Mr. Valente's ? 

Mr. Henig. Went up to $190 a week and his salary was then at the 
rate of $18,380. 

Mr. Kennedy. Then there were certain actions taken right after 
the convention of 1956, that raised their salary and per diem even 
higher, is that right ? 

Mr. Henig. On October 25, 1956, the executive council, on author- 
ity of the convention at that time, passed a resolution that the salary 
of Mr. Klenert would be $14,000 a year, and the salary of Mr. Valente 
would be $15,000 a year, plus per diem. 

Mv. Kennp:dY. So the per diem brings Mr. Valente to $22,300 a 
year and Mr. Klenert to $21,300 a year ? 

Mr. Henig. Yes, sir. 



3482 IMPROPER ACTIVITIES IIS" THE LABOR FIELD 

Mr. Kennedy. I want to understand. Above and beyond those 
figures, Mr. Klenert and Mr. Valente received their expenses, and 
their hotel bills, and their traveling expenses ; is that right ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. So this is a flat amount that they received each year, 
is that right ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. And above that and beyond that they received their 
expenses ? 

Mr. Henig. Yes, sir. 

Mr. KJENNEDY. Have you made an examination into their hotel bills ? 

Mr. Henig. Yes, sir, we have. 

Mr. Kennedy. Could you tell the committee what the total hotel 
bill of Mr. Klenert for these o-year periods that you have made a 
study of was ? 

Mr. Henig. Mr. Klenert's total hotel bill paid by the union was 
about $59,000. In addition to that, the union maintained a hotel in 
Washington for union purposes which ran about $17,600 for the 3-year 
period, so the total hotel bill of Klenert and the hotel maintained by 
the union in Washington was $86,364.46. 

Mr. Kennedy. And the figure at the Hamilton Hotel of $17,626.34 
was a hotel room maintained by the union ; is that right ? 

Mr. Henig. That is right. 

Mr, Kennedy. Xow, on those hotel bills at each one of these hotels, 
did Mr. Klenert make it a practice of having payouts or c. o. d. pack- 
ages delivered to his hotel ? 

Mr. Henig. Yes, sir; he did. He would purchase in Washington, 
he would make purchases at certain stores in Washington, and have 
the item delivered to the hotel, on a c. o. d. basis, and the hotel would 
pay for the merchandise, a suit of clothes or a coat, and put the charge 
on the union's bill, which was in turn paid by the union, the entire bill. 
The same was true just about eA^ery place we were able to check, Mr. 
Klenert would buy a number of things and have it delivered to the 
hotel and the bill would go to the union, and the union would pay for 
the entire bill, including the personal items. 

Mr. Kennedy. Did you check the items that were covered in these 
paids outs, these c. o. d. packages, and did you check the sales slips 
and find out the type of items delivered to the hotel ? 

Mr. Henig. In a number of instances, we were able to go back to 
the merchant and through his records we were able to get what Mr. 
Klenert purchased. 

Mr. Kennedy. Now, for this 3-year period, from April of 1954 until 
January of 1957 — — 

Mr. Henig. It was March of 1957. 

Mr. Kennedy. "V^^iat was the total of the paid-outs ? 

Mr. Henig. $30,036. 

Mr. Kennedy. For Mr. Klenert ? 

Mr. Henig. Yes, sir ; that was all Mr. Klenert. 

Mr. Kennedy. At the same time, when he was staying at the liotel, 
would he also receive cash advances from the hotel and charge them 
to his liotel bill, which would, in turn, be paid by the union? 

Mr. Henig. Yes, sir, included in that $30,000 figure are the cash 
advances, or cash refunds received bv Mr. Klenert of $12,644.93. 

Mr. Kennedy. Out of the $30,036.31, there was $12,644.93 as cash 
advances ; is that right ? 



IMPROPER ACTIVITIES EST THE LABOR FIELD 3483 

Mr. Henig. Cash received by the hotel and put on the bilL 

Mr, Kennedy. And $12,107.75 was for the payment of c. o. d. 
packages ? 

Mr. Henig. That is right, sir. 

Mr. Kennedy. Then other incidentals, such as golf, cabana, and 
solarium, amounted to $971.04 ? 

Mr. Henig. That is right. 

Mr. Kennedy. There were other incidentals of $2,312.59 ? 

Mr. Henig. That is right. That was right. 

Mr. Kennedy. Mr. Chairman, we have a mimeographed sheet here 
summarizing these hotel bills, and summarizing the pay-outs. Could 
we have this made a part of the record '^ 

Senator Curtis. Without objection, it is so ordered. 

(Document referred to follows :) 



3484 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3485 

Senator Curtis. I should like to ask you about this item of c. o. d. 
packages, $14,107.75. Have you checked each one of those items ? 

Mr, Henig. No, sir ; we don't have the sale slips on each item. We 
have them for a large number of the items, but many of the stores 
were not able to supply us with sales slips. 

Senator Curtis. Would you say the major portion of them? 

Mr. Henig. I would say so. 

Senator Curtis. And these are c. o. d. charges that are personal in 
character, as contrasted to supplies for the union ? 

Mr. Henig. None of them were supplies for the union, sir. 

Senator Curtis. None that you were able to check ? 

Mr. Henig. No, sir. 

Senator Curtis. That is all. 

Mr. IvENNEDY. Did you make a list or sample of the items purchased 
by Mr. Klenert at the hotel ? 

Mr. Henig. Yes, sir; I did. 

Mr. Kennedy. Do you have such a list with you ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. Could you tell us some of the items that you found 
that were purchased, and the price ? 

Mr. Henig. Yes, we have an item, Magnavox TV set for $277.59. 
We have an RCA Victor color TV set for $566.56. 

We have a number of suits ranging from $100 to $150 in cost, for 
Mr. Klenert. We have women's hanclbags. We have record albums; 
one record album was $77.25, We have a corkscrew for $25.20. We 
have a sport cane for $10. We have a golfer's lamp for $49.50. A 
number of milk stools. 

Mr. Kennedy. Did you find out what a milk stool was ? 

Mr. Henig. I was not able to find out exactly what it is, but I assume 
it is a small piece of furniture that you would put in a den or some- 
thing like that. It was not used for milking a cow, I am sure of that. 

^Ir. Kennedy. What about a golfer's lamp ? Someone told me it was 
a lamp that jou put on the front of your head, when you plaj' golf at 
night. 

Mr. Henig. I don't believe so. The salesman thought it was a lamp 
either in the form of a set of golf clubs or a golfer swinging; a lamp 
with a shade on top. 

Mr. Kennedy. You found a doll ; did you ? 

Mr. Henig. We found a number of purchases of toys, and games 
for children and a number of purchases of children's clothes, and 
some expensive purchases of women's clubs and we have an original 
black coat, $200. We have a woman's black suit of $222. We have 
a hand crocheted skirt and a handknitted sweater for $99.65. These 
are all purchased b}^ Mr. Klenert for his wife. 

We have a navy dress for $135. 

Mr. Kennedy. Did you make a list of samples of items that were 
purchased? 

]Mr. Henig. Yes, sir, by Mr. Klenert for his wife. We have a list 
of each, just samples, and it is not inclusive. 

(At this point, Senator Ervin entered the hearing room.) 

Mr. Kennedy. We would like to have that placed in the record. 

Senator Ervin. It is so ordered, for both Mr. and ]Mrs. Klenert. 

89330— 57— pt. 9 18 



3486 IMPROPER ACTIVITIES IN THE LABOR FIELD 

(Document referred to follows :) 

Samples of items purchased by Lloyd Klenert with United Textile Workers of 

America funds 

Theater tickets for My Fair Lady $2,564.65 

Golfers lamp 49. 50 

Milk stool 5. 50 

Corkscrew 25.20 

Sport cane lo. 00 

Magnavox TV set 277.-59 

RCA Victor color TV set 566. .50 

1 suit 142. 20 

1 tuxedo 149. 43 

1 tuxedo jacket 3-5. 00 

4 pieces of luggage 168. 15 

2 toy dogs 16 .66 

Toy airplane 9. 95 

Sheets and pillow cases 65.66 

Staticmaster brush for phonograph 17. 85 

"Angel" record album 77.25 

Black handbag 50. 40 

Hat box 11. 00 

Hat box 16. 50 

"Shortrip" (luggage) 16. 50 

Handbag 27. 50 

Handbag 39.60 

Photo album 9. 95 

Radio 39.98 

End table 24. 95 

Hassock 61.20 

Zenith radio 93. 76 

2 pairs ladies' gloves 8. 00 

Handbag 49.50 

Compact 9. 00 

Portable typewriter 84. 27 

RCA television 125. 00 

RCA radio 44. 75 

Ladies' umbrella 7. 50 

Cigarette case 10. 00 

Picture frames 34. 00 

General Electric air conditioner 321. 86 

1 cas^hmere cax-digan 24. 50 

1 cashmere slip-on 18. 00 

5 Ice Capades tickets 15.00 

1 pair pa.iamas 15. 00 

6 pairs of shorts 9. 00 

2 ties 30. 00 

1 shirt 11. 50 

2 dolls 11. 90 

Jakari game 3. 95 

Suede jacket 24. 95 

Jewelry 8. 50 

Hand-knit sweater 20. 40 

2 record albums 9. 23 

Diaper service 26. 00 

6 T-shirts 21. 00 

1 tie 7. 50 

I shirt 15. 45 

3 rolls of film 1. 52 

II handkerchiefs 28. 33 

1 roll of color film 2. 04 

3 golf balls 3. 87 

Caddy 10.00 

1 doll 8. 00 

1 toy poodle 2. 50 

Pair of shoes 15. 40 



IMPROPER ACTIVITIES IJs THE LABOR FIELD 3487 

■Samples of items purcliased hy Lloyd Klenert tvith United Textile Workers of 
America /wH<fs— Continued 

1 sweater, size 36 ,528. 79 

1 robe iq\ 50 

1 pair pajamas 10. 00 

1 pair slioes 25. 70 

1 suit 137.' 70 

1 suit 102. 00 

1 coat 95. 80 

I suit : 68. 00 

Phonograph 66.85 

10 record albums 56. 78 

Original black coat 200. 00 

Black suit 222. 00 

Blue and white dress 35. oo 

II sua suits 46. 87 

Bathin? suit 15. 15 

Beige dress 100. 00 

Blue dress 71. 95 

Cand.v 26. 58 

Hand-crocheted skirt and hand-knit sweater 99. 65 

3 sweaters 22. 85 

1 blazer 16. 95 

1 raincoat 19. 95 

1 coat .55. 00 

2 skirts 25. 90 

1 coat 39. 95 

4 pajamas 23. 80 

1 hat 4. 07 

1 dress 20. 19 

1 suit 29. 95 

1 skirt 7. 90 

2 pairs shoes 19. 47 

2 dresses, size 9 77. 20 

3 sweaters 92. 55 

1 dress 18. 49 

1 pair Pediform shoes 20. 55 

1 white dress 92. 65 

Trampoline lessons 40. 00 

2 sets of shorts 7. 90 

2 swimming suits 11. 96 

Linens 83.28 

Beauty salon 35. 00 

White embroidered dress 56. 65 

1 sweater 23. 64 

Children's clothes 20. 55 

2 handbags 14. 69 

1 navy dress 135. 00 

1 white dress 89. 95 

1 pair shoes 26. 73 

2 brassieres 3. 61 

9 pairs hose 14. 37 

2 slips 18. 44 

1 scarf 9. 27 

12 pairs hose 25. 16 

Girdle, brassieres, and petticoat 18. 44 

Jewelry 19.21 

1 bras.siere 12. 50 

Mr, Kennedy. Did you find that Mr. Klenert purchased a rather 
large number of theater tickets ? 
Mr. Calabrese. Yes. 
Mr. Kennedy. You did ? 
Mr. Calabrese. Yes. 
Mr. Kennedy. In New York City ? 
Mr. Calabrese. Yes. 



3488 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. For this 3-year period, could you tell the committee 
what the charges were to the union for the theater tickets that Mr. 
Klenert purchased during this 3 -year period ? 

Mr. Calabrese. Yes ; the charges were $11,411. 

Mr. Kennedy. $11,411 worth of theater tickets ? 

Mr. Calabeese. That is correct. 

Mr. Kennedy. Charged to the union ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Now, did you figure out or learn whether there were 
any particular shows that Mr. Klenert was interested in ? 

Mr. Calabrese. Yes. There is one particular show, My Fair Lady, 
which indicates that he purchased $2,564.65 worth of tickets. 

Mr. Kennedy. For My Fair Lady ? 

Mr. Calabrese. Yes. 

Mr. Kennedy. This was also charged to the union ? 

Mr. Calabrese. Yes, during a short period of time. 

Mr. Kennedy. Do you know how many visits to My Fair Ladv 
that is? 

Mr. Calabrese. Approximately 24. 

Mr. Kennedy. Twenty-four visits ? 

Mr. Calabrese. Yes, sir. 

Mr. Kennedy. That would be $100 apiece, would it not ? 

Mr. Calabrese. In these visits, we have a certain amount of money 
expended and we don't know how many attended. 

Mr. Kennedy. But 24 different visits ? 

Mr. Calabrese. Twenty-four different visits; that is correct. 

Mr. Kennedy. Do you have the records on the theater tickets that 
we could place in the record ? 

Mr. Calabrese. Yes, we do. 

Mr. Kennedy. Do you have the union checks that paid for the 
theater tickets ? 

Mr. Calabrese. Yes ; I do. 

Mr. Kennedy. Could you identify those, please ? 

Mr. Calabrese. I have in my hand here the canceled checks of the 
United Textile Workers of America, making payments to the Acme 
Theater Ticket Service in the amount of $9,355.60. We have from the 
Acme Theater Ticket Service a list of the shows that Mr. Klenert pur- 
chased tickets to. 

Mr. Kennedy. Could you list some of those for us ? 

Mr. Calabrese. Yes. It was January 28, 1956, the Alvin Tlieatre, 
No Time for Sergeants. February 4, 1956, Madison Square, Melrose, 
athletic games. February 21, 1956, Booth Theatre, Time Limit. 
March 23, 1956, My Fair Lady. April 28, 1956, Mv Fair Ladv. Au- 
gust 30, 1956, My' Fair Lady. August 6, 1956, the Imperial, Most 
Happy Fella. September 8, 1956, My Fair Ladv. September 15, 
1956, No Time For Sergeants. September 25, 1956, JEbbetts Field, The 
Dodgers. September 26, September 11, September 14, 18, 24, 27; 
October 3, My Fair Lady. 

Senator Curtis. All of that is in 1956 ? 

Mr. Calabrese. That is correct, sir. 

Senator Curtis. That should not be so hard to remember, tlien. 

Mr. Calabrese. October 13, 1956, again. My Fair Ladv. October 
20, 1956, 46th Street Theatre, Dam Yankees. October 20, 1956. Im- 
perial, Most Happy Fella. October 24, 1956, Madison Square Garden, 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3489 

Rangers versus Canadians. October 25, 1956, My Fair Lady. October 
26, 1956, Music Box, Separate Tables. October 27, 1956, My Fair 
Lady. 

Mr. Kennedy. Mr. Chairman, could we have that list of some of the 
plays for which tickets were purchased with union funds made a part 
of the record ? 

You also have the checks that paid for all of these tickets? 

Mr. Calabrese. We have the checks, and the Acme Theatre Ticket 
Service ledger. 

Mr. Kennedy. How much does the Acme Theatre Ticket ledger 
show ; what is that total ? 

Mr. Calabrese. The union checks total $9,355.60. 

Mr. Kennedy. Then there was another theater agency that was 
used ? 

Mr. Calabrese. Yes; we have another theater ticket service. 

Senator Curtis. Without objection, those will be included in the 
record as exhibit 55. 

(The documents referred to were marked Exhibit 55, for reference 
and will be found in the files of the select committee.) 

Mr. Calabrese. At the Richter Theatre Ticket Service, Mr. Klenert 
purchased tickets in the amount of $2,030.35. 

Mr. IvENNEDY. Do you have the checks ? 

Mr. Calabrese. I have the checks amounting to $2,030.35, and these 
are the canceled checks of the United Textile Workers of America, in 
payment to the Richter Theatre Ticket Service. 

I have here also the theater ticket service ledger sheets, indicating 
the theaters for which tickets were purchased during the 1954, 1955, 
and 1956 period. 

Now, these indicated again, a number of tickets purchased primarily 
for shows, and a number of them, again, to ]My Fair Lady. 

Mr. Kennedy. Mr. Chairman, could we also have the records for 
these tickets from this other theater agency made a part of the record, 
and the letter indicating what shows were seen, and the checks, the 
union checks, that were used to pay for these tickets made a part of 
the record? 

Senator Curtis. They will be appropriately numbered and made a 
part of the record. 

(The documents referred to were marked "Exhibit No. 56," for 
reference and ma}^ be found in the files of the select committee.) 

Mr. Kennedy. Now, the total from those two different theater 
agencies was $11,411 ? jT 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Did you also find during this 3-year period of time, 
1954 to 1957, that Mr. Klenert traveled rather extensively and stayed 
at hotels in Florida in the winter and hotels in northern resorts in the 
smnmer, and that he took his family with him and the union paid for 
those charges ? 

Mr. Henig. Yes, sir, we did. 

Mr. Kennedy. Could you tell us some of those ? 

Mr. Henig. Yes, sir. On July 13, 1956, Mr. Klenert went to the 
Princess Hotel in Bermuda, with his wife, and stayed there until the 
20th, and he incurred a bill of $771.94, all of which was paid by the 
union. 



3490 IMPROPER ACTIVITIES IN THE LABOR FIELD 
He Avent to the Samoset Hotel 



Senator Curtis. I want to ask you, to j^our knoAvledge, does the 
union haA'e any locals in Bermuda ? 

Mr. Henig. No, sir. 

Senator Curtis. Was that at a time of any convention of the union?' 

Mr. Henig. No, sir. 

Senator Curtis. That is all. 

Mr. Kennedy. Would you tell us what other hotels ? 

Mr. Henig. Yes, sir. Mr. Klenert and his wife and one of his chil- 
dren went to the Samoset Hotel, which is in Rockland, Maine, on the 
21st of August 1956, and he stayed there until the 30th of August, and 
he incurred a bill of $1,089.81, all of which was paid by the union. 

Mr. Klenert and his wife and two children and a friend went to the 
Boca Raton Club in Boca Raton, Fla., on March 29, 1956, and he 
stayed there until April 9. 1956, and incurred a bill of $2,254.96, all of 
which was paid by the union. 

Mr. Klenert, accompanied by his wife and two children, went to the- 
Balmoral Hotel in Miami Beach, Fla., on January 25, 1956, and he 
stayed there until February 7, 1956, and he incurred a bill of $2,740.39, 
all of which was paid b}^ the union. 

He went to the Balmoral Hotel, again, on December 8, 1956, and he 
stayed there until the 16th of December and he was accompanied by 
his" wife only at that time. He incurred a bill of $1,118.21, all of 
which was paid b}^ the union. 

Mr. Klenert again Vxent to tlie Balmoral Hotel on January 26, 1957,. 
and he was accompanied by his wife, four children, and mother, and 
he stayed there until March 3, 1957, and he incurred a bill of $5,920, of 
which Mr. Klenert paid $600 and the remaining $5,320 was paid by 
the union. 

Mr. Klenert went to the Eden Roc Hotel, in Miami Beach, on 
November 8, 1956, and he stayed there until the 25th of November 1956, 
and he was there 1 y himself, and he incurred a bill of $1,008.65, all of 
which was paid by the union. 

He again went to the Eden Roc Hotel on the first of January 1957, 
and he stayed there for 6 days, and he was there by himself. He in- 
curred a bill of $744.94, all of which was paid b}' the union. 

He went to the Roney Plaza Hotel in Miami Beach, on January 1, 
1956, and he stayed there 6 days by himself. He incurred a bill of 
$601.89, all of which was paid by the union. 

Mr. Klenert and his wife, and four children, and a maid went to the 
Blue Bay Motel in Miami Beach, on December 9, 1954, and stayed there 
until February 26, 1955, and he incurred a bill of $3,598.28, of which 
$2,740,79 was paid by the union. 

Mr. Kennedy. You have two of these marked with a friend. The 
friend had nothing to do with the uni on ? 

Mr. Henig. As far as we know there Avas no connection with the 
union. 

Senator Curtis. Do you know the approximate age of the childrem 
referred to there ? 

Mr. Henig. They were under 13, I believe. There are 4 children, 
and I think from 1 or 2 years to about 13 or 14. 

Mr. Kennedy. What was the total amount of the bills of which jon 
questioned out of that ? 



IMPROPER ACTIVITIES IX THE LABOR FIELD 



3491 



Mr. Hexig. We questioned the payment by the union of $18,391.58. 

Mr. KJENXEDY. Mr. Chairman, once again we have a list of these 
hotel bills, and the charges involved. I would like to have that made 
a part of the record, if we might. 

Senator Curtis. It will be put right into the record. It will be 
received, without objection. 

(Document referred to follows :) 

Questionable hotel charges of Lloyd Klenert, international secretary-treasurer, 

VTWA 



Hotel and location 



Dates 



Princess Hotel, Berniu<la__ 
Samoset Hotel, Rockland, 

Maine. 
Boca Raton Club, Boca 

Raton, ria. 
Balmoral Hotel, Miami 
Beach, Fla. 

Do 

Do 



From 



Eden Roc Hotel, Miami 
Beach, Fla. 
Do 

Ronev Plaza Hotil, Miami 

Beach, Fla. 
Blue Ray Motel, Miami 

Beach, Fla. 



July 
Aug. 

Mar. 

Jan. 

Dee. 
Jan. 



13. 1956 
21, 1956 



29. 1956 
25, 1956 



8, 1956 
26, 1957 



Xov. 18, 1956 



Jan. 
Jan. 



1, 1957 
1. 1956 



Dec. 19, 1954 



To 



July 
Aug. 



Apr. 
Feb. 



Dec. 
Mar. 



20, 19.=i6 
30, 1956 



9, 1956 
7, 1956 



16. 1S56 
3, 1957 



Xov. 25, 1956 



Jan. 
Jan. 



6. 1957 
6, 19.56 



Feb. 26,1955 



Total 19,849.07 I 18,391.58 



Guests 



Kloneit and wife. . . 

Klenert, wife, and 1 

chUd. 
Klenert, wife, 2 children, 

and friend. 
Klenert, wife, and 2 

children. 

Klenert and wife 

Klenert, wife, 4 children, 

and mother. 
Klenert only 



do.'-. 

Klenert 2. 



Klenert, wife, 4 children, 
and maid. 



I Amount 

Amount ] paid by 

of bill i UTWA 



$771. 94 
1, 089. 81 



2, 254. 96 
2, 740. 39 



1,118,21 
5, 920. 00 



S771.94 
1. 089. 81 



2, 254. 96 
2, 740. 39 



1,118.21 
5, 320. 00 



1,008.65 I 1,008.65 



744. 94 
601. 89 



744. 94 
601.89 



3,598.28 I 2,740.79 



1 Includes .$100 hotel charges for a friend. 

2 Includes .$131.02 hotel charges for a friend. 

Mr. Kennedy. Did you also find during this period of time, by the 
books and the records of the union which were in existence, or have 
you also made a check of the travel that Mr. Klenert has charged to 
the union ? 

Mr. Calabrese. We did. 

Mr. Kennedy. Have you made a list or summai'y of the que.stionable 
items on his travel ? 

Mr. Calabrese. We have. 

Mr, Kex'nedy. Now, this is by no means the total number of items, 
these are the ones that you questioned, is that right ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy, Just as the hotel bills are the ones that you ques- 
tioned, rather than the total items. He was down in Florida at other 
times and stayed at other hotels and stayed at some of these hotels, but 
these items you did not question, is that right? You felt thev were 
legitimate items? 

Mr. Henig, That is right. 

Mr. Kennedy, These items that jovl have listed for us are items that 
you questioned ? 

Mr. Hexig. Yes, sir. 

Senator Ci'rtis. Now, with all of these figures in reference to hotels, 
the information from which you made up this list, was that obtained 
entirely from the union records? 

Mr. Hex^ig. No, sir, it was not. 

Senator Curtis. Where else did j^ou go ? 



3492 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Henig. We obtained the information from the hotel records. 
The union records did not contain any of the information concerning 
hotel travel other than the checks. 

Senator Curtis. This sheet that has just been received in evidence 
lists all of these hotels. Did you check with each one of them ? 

Mr. Henig. Yes, sir. 

Senator Curtis. That is all. 

Mr. Kennedy. Now, the questionable air transportation, could you 
tell the committee about that, from an examination of the records of 
the union that are still in existence, and from the bank checks ? 

Mr. Calabrese. From that, we were able to subpena the appropriate 
airlines, the National Airlines, and Pan American Airways, Eastern 
Airlines, and the American Airlines. We obtained the tickets and in- 
formation making up this summary which I have here. We ques- 
tioned the air transportation charges of Lloyd Klenert from approxi- 
mately March of 1955 to 1957, and from all four airlines that we 
mentioned a total of $1,897.67 was found. 

Mr. Kennedy. Included in these trips, were there friends of Mr. 
Klenert's ? 

Mr. Calabrese. Yes, sir. 

Mr. Kennedy. And relatives of Mr. Klenert's ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Various trips by his children ? 

Mr. Calabrese. Yes, with his children, where he made trips with 
his children. 

Mr. Kennedy. And the union paid for the children's transportation ? 

Mr. Calabrese. The union was charged for the children's transpor- 
tation, and his relatives, and his friends. 

Mr. Kennedy. And his wife's transportation ? 

Mr. Calabrese. And his wife's transportation. 

Mr. Kennedy. And his mother's transportation ? 

Mr. Calabrese. Yes, sir, and this amounted to $1,804.52. 

Mr. Ivennedy. There were a number of trips by his children and his 
mother and his wife from Washington, D. C, to Miami that the union 
paid for ; is that right ? 

Mr. Calabrese. Yes ; that is right. 

Mr. Kennedy. Can you find any authority in the minutes of the 
executive board of the textile union that gives authority to pay for 
the transportation of Mrs. Klenert or Mr. Klenert's children or Mr. 
Klenert's mother ? 

Mr. Calabrese. I could find no authority, and Mr. Valente, when I 
spoke to him, could quote no authority for this. 

Mr. Kennedy. Mr. Chairman, we have a list of those items of air 
transportation that the staff has found to be questionable, and I would 
like to have that placed in the record. 

Senator Curtis. Without objection, it is so ordered. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 



3493 



(Document referred to follows :) 
VTWA — Summary 0/ questionable air transportation charges of Lloyd Klenert 



Dates (leave and return) Location i 


Amount 


National Air Lines: 

Mar. 12 to 16, 19.15- _.. 


Washington, D. C, to Miami.. .. .. 


$132. 33 


Nov. 8 to 16, 1955 


do -— 


139. 26 


Jan. 25 to Feb. 8, 1956 . 


.do .. 


139. 26 


Feb. 3 to 4, 1956 


Miami to New York City... _ _. . . 


160.38 


Nov. 11 to 25, 1956- 




132. 33 


Dec. 8 to 16, 1956 


do 


132. 33 


Jan. 1 to 6, 1957 


do - 


132. 33 


Jan. 26 to Feb. 2. 1957 


do 


132. 33 


Feb. 18 to 20, 1957 


do 


132. 33 


Feb. 26 to Mar. 2, 1957—. 


do 


132. 33 


Open 


Miami, to New York City* 


84.37 








Total 


1, 449. 58 


Pan American Airways: July 13 to 22, 1956 


Washington, D. C, to Bermuda 


135. 30 




New York Citv, to Miami* _. 




Eastern Air Lines: 

Dec. 8, 1956... . . 


84.37 


Feb. 8to 20, 1957 


Washington, D. C, to Miami 


132. 33 








Total 


216. 70 




Washington, D. C, to Rockland, Maine 

Washington, D. C, to Rockland, Maine (ex- 
cess baggage). 




American Air Lines: 

Aug. 21 to 31, 1956 


81.02 


Do . 


15.07 






Total 


96.09 








Total, all airlines .. ._ . 


1, 897. 67 









i > AU tickets are round trip unless indicated by asterisk. 

VTWA — Summary of questionahle air-transportation charges paid by VTWA for 
family and friends of Lloyd Klenert 



Period Oeave and return) 


Locations ' 


Person 


Amount 


American Air Lines: 

Sept. 21, 1955-Oct. 22, 1955.... 

Nov. 22, 1955-Nov. 23, 1955 . 


Washington, D. C, to New 

York City. 
-.- do 


Mrs. L. Klenert. 


$27.28 


do -. 


15.84 


June 30, 1956-open 


New York City, to Wash- 
ington, D. C. 

Washington, D. C, to Rock- 
land, Me. 
do 


Abrams (relative) 


30.14 


Aug. 21, 1956-Aug. 31, 1956.... 
Do 


Mrs. L. Klenert 


60.28 


Klenert child (Steven) _ 

Friend ... 


39.49 


Sept. 22, 1956-Sept. 23, 1956... 
Mar. 22, 1957-Mar. 23, 1957 


New York City, to Wash- 
ington, D. C. 

Washington, D. C, to New 
York City. 

Washington, D. C, to Ber- 
muda. 

Miami to New York City K. 
.- do' 


30.14 


Mrs. L. Klenert 


30 14 




do- 

M. Yeslovv (relative) -. 

Mr. J. Dugan . _ 




Pan American Airways: July 13, 

1956-July 22, 1956. 
National Air I/ines; 

Jan. 8. 1955 


233. 31 
135.30 


48.40 


Feb. 26, 1955 


84.37 


Mar. 11, 1955-open 


New York City to Miami. ^. 

Washington. D. C. to Miami 

New York City to Miami. __ 

do 


Friend .. _ 


111. 10 


Nov 8 1955-Nov 16 1955 


Mrs. L. Klenert _ 


69.63 


Nov. 23, 1955-Nov 27, 1955 


Friend . . 


160. 38 


Do 


Friend (chUd) 


80.19 


Jan. 25, 195&-Feb. 8, 1956 

Do 


Washington, D. C. to Miami. 
do 


Klenert child (Kathy) 

Klenert child (Steven) 

Mrs. L. Klenert--- 


66.17 
66.17 


Do 


do 


69.63 


Dec. 8, 1956-Dec. 16, 1956 


do 


do 


132. 33 


Jan. 26, 1957-Mar. 1, 1957 

Do 


do 

do. . 


Klenert child (Kathy) 

Klenert child (Bonnie) 

Klenert child (Steven) 

Mrs. L. Klenert- - - .. - 


66.17 
66.17 


Do 


- do 


66.17 


Do 


do - 


132. 33 


Open-open.- 


Miami to New York City '- 
Washington, D. C. to Miami. 


Mrs. E. Klenert (mother)... 
do 


84.37 






Eastern Air Lines: Feb. 8, 1957- 
Feb. 20, 1957. 


1, 303. 58 
132. 33 




1, 804. 52 









I 



'All tickets are round trip unless indicated as one way. 



3494 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. I would like to ask about this. This information 
is obtained both from union records and the airline records ? 

Mr. Calabrese. That is correct, sir. 

Senator Curtis. You have checked each item as to what information 
you found in each place ? 

Mr. Calabrese. That is correct. 

Mr. Kennedy. Do you have records on those items, too ? 

Mr. Calabrese. We do. 

Mr. Kennedy. You also have the records on the hotels that you 
have mentioned, and I think that we should make those an exhibit for 
reference, Mr. Chairman, and also the ones for the air transportation. 

Senator Curtis. Without objection, they will be appro])riately num- 
bered as exhibit 57, and received as exhibits, for reference. 

(The documents referred to were marked ''Exhibit 57," for reference 
and may be found in the files of the select committee.) 

Mr. Kennedy. That would be the hotel bills, plus the canceled 
checks from the union, and you have verified all of these ? 

Mr. Calabrese. That is correct. They are all in that box : yes, sir. 

Mr. Kennedy. I just have a couple of other matters that I wanted 
to brin^ up. 

I wanted to ask you about some of these items, what we have called 
a summary of the improper use of United Textile Workers of America 
funds, by Lloyd Klenert, and Anthony Valente. We have sfone over 
the first four items, the UTWA funds to purchase new homes, the air- 
conditionin<T, and the paid-outs. 

Now you have here a list of a fioure of $2,003 for Diner's Chib. credit 
card. What is that ? Would you explain that ? 

Mr. Henig. Yes, sir. Mr. Valente and Mr. Klenert are both holders 
of Diner's Club credit cards, a credit-renderino; agency, and Mr. Klen- 
ert, through the use of this card, was able to purchase $2,003 in items 
from a store in Washington, D. C. It is a leather-goods shop in 
Washington, D. C. The items are mostly women's handbags, luggage, 
and some of the others things we have mentioned. 

Mr. Kennedy. What is the Diner's Club ordinarily used for? 

Mr. Henig. Basically, it is used for restaurant charges, and certain 
hotel charges, and it keeps a person from carrying a lot of cash around 
when he is traveling. He can use the credit facilities of the Diner's 
Club. It can be used for many stores for purchases of merchandise. 

Senator Curtis. This item of $2,003, none of that is for meals? 

Mr. Henig. None of that is for meals ; no, sir. 

Senator Curtis. That is all in one store ? 

Mr. Henig. All in one store, and all merchandise. 

Senator Curtis. Where is the store located ? 

Mr. PIenig. Camalier & Buckley, it is on Connecticut Avenue, in 
Washington, D. C. 

Senator Curtis. Do you know what year that was ? 

Mr Hentg. Yes, sir. it is from 1954 through January of 1957. 

Senator Curtis. Do you have the records there ? 

Mr. Henig. Yes, sir. 

Senator Curtis. Give us some of the 1957 items, and we may want 
to inquire about them. 

Mr. Henig. Senator, you wanted these items ? 

Senator Curtis. Yes. 

Mr. Henig. You wanted the 1956 purchases; did you say? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3495 

Mr. Kennedy. Anything you have in 1957. 

Senator Curtis. xVnything in 195T, or the last part of 1956. What 
I want to do, I want to have some of tliese men explain about these. 

Mr. Henig. I have a sales ticket from Camalier & Buckley, date of 
the sales ticket is December 6, 1956, and these are the items purchased : 
1 handbag, $35 ; 1 handbag, $25 ; 1 handbag, $35 ; 2 picture frames at 
$17 each, $34. 

It looks like three folding frames for $9.50 and a tax of $2.09. 

This makes a total of $140.59. 

Senator Curtis. That all appears on the same day ? 

Mr. Henig. That was all on the same sales ticket, on December 6. 

On the same date, December 6, 1956, I have a purchase of 1 pair of 
ladies' gloves, $4; 1 pair of ladies' gloves, $5: 1 jijair of ladies' gloves, 
$6.50 ; tax of 31 cents, a total of $15.81. 

On November 6, 1956, 1 have a sales ticket from Camalier & Buckley 
showing a purchase of 2 pairs of ladies' gloves, $8.50 apiece, total $17; 
1 ladies' umbrella, $7.50; and 1 cigarette ca.se, $10; tax of 69 cents 
or a total of $35.19. 

On September 20, 1956, I have a Camalier & Buckley sales ticket 
showing a purchase of 1 handbag for S35, with Federal and State 
and local tax, $39.20 total. 

On the same date, September 20. 1956, I have a purchase of a globe 
for $25; a wastepaper basket for $21. a wallet for $5, and a tray for 
$35, and the total is $88.22, with tax. 

Senator Curtis. Those were all in 1956 ? 

Mr. Henig. They are all from September 20 up to, I believe, De- 
cember 6, 1956. 

Senator Curtis. Do there happen to be any there for 1957? 

Mr. Henig. No, sir; we don't have any for 1957, and we don't have 
Ihe sales tickets. 

Mr. Kennedy. At hotels you have items for 1957. 

Senator Curtis. T am talking about this Diner's Club. 

At each one of these instances, you have traced through to find that 
the payment was actually made by the union? 

Mr. Henig. Yes, sir. We have checks here by the United Textile 
Workers of America, to the Diner's Club, sir, totaling $8,711.4^ for 
the period May 7, 1954, through March 26, 1957. 

Senator Curtis. But these detailed items that vou read, they are 
included in this item of $2,003 ? 

Mr. Henig. Yes, sir. 

Senator Curtis. And which you have listed in the category as yjer- 
sonal items for merchandise obtained by Mr. Klenert ? 

Ml". Henig. That is right, sir. The items I just read off were in- 
cluded in that $2,003 total. 

Mr. Kennedy. Did you also find, not only in the Diner's Club, there 
was also a practice and procedure followed b}' Mr. Klenert with the 
use of a trip-charge card that lie had? 

Could we have these records made a part of the record, Mr. Chair- 
man, the ones dealing with the Diner's Club ? 

Senator Curtis. Without objection, it is so ordered. That will be 
marked "Exhibit 58," for reference. 

(The document referred to was marked "Exhibit 58," for refer- 
ence and may be found in the files of the select committee.) 



3496 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Ml*. Henig. Trip-Charge, Inc., is a credit rendering agency very 
similar to the Diner's Chib. In fact, they have sold a number of their 
accounts to the Diner's Club. Mr. Klenert made quite a bit of use of 
Trip-Charge, Inc., credit cards. He purchased $1,776 worth of mer- 
chandise which was charged to the union and paid by the union. 

He also used Trip-Charge facilities for paying some of his Florida 
hotel bills, which is not included in that $1,776 total. 

Mr. Kennedy. So it is the same practice and procedure followed 
with this? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. And these were personal items ? 

Mr. Henig. Yes, sir. 

Senator Curtis. Then I notice there is a lesser item for Mr. Valente 
on the Trip-Charge of $172, and the total is $1,948. When you say 
these were paid by the union, how were they paid by the union, in cash 
or in check? 

Mr. Henig. By check, sir. We have the canceled checks. 

Senator Curtis. How many signatures are on each check? 

Mr. Henig. Mr. Klenert has a card and Mr. Valente has a card. 
There is only one signature on the union check, Mr. Lloyd Klenert 's 
signature. He is the only one authorized to sign the checks for the 
union. 

Mr. Kennedy. What have you fovmd to be the procedure as far as 
his bills that are submitted to the union ? 

Mr. Henig. We were told by Mrs. LaPlaca, who is the union's book- 
keeper, that when bills for hotels. Diner's Club or Trip-Charge came 
into the union she gives the entire bill to Mr. Klenert, or if the hotel 
bill pertains to ]Mr. Valente, she gives it to Mr. Valente. Mr. Klenert 
then would give lier back only the covering statement for the last 
sheet of the hotel bill which stated the amount due, and she would 
draw a check for that amount, and that constituted the voucher in the 
union's files, just that one statement saying "$480 due," or something 
like that. But there was no detail indicating the type of purchases 
at the hotel or the details showing the type of purchases that through 
Diner's Club or Trip-Charge, Inc. Just the covering statement. 

Mr. Kennedy. So it would be Mr. Klenert who would check the 
bills of Mr. Klenert to determine whether they should be paid by the 
union or not ? 

Mr. Henig. Yes, sir. 

Mr. KJENNEDY. And it would be Mr. Valente to check the bills of 
Mr. Valente to determine whether they were proper and should be 
paid by the union ? 

Mr. Henig. The hotel bills of Mr. Valente, yes, sir. 

Mr. E^ENNEDY. And also the Trip-Charge and the Diner's Club ? 

Mr. Henig. We are told that Mr. Klenert checked the Trip-Charge 
and Diner's Club charges. 

Mr. Kennedy. Of both Mr. Valente and Mr. Klenert? 

Mr. Henig. They would only come in in one bill. 

Mr. Kennedy. But Mr. Klenert would be the one to check his own 
bill, is that right? 

Mr. Henig. Yes, sir. He would check his own bill. 

Mr. Kennedy. You have here an item of the discount on the pur- 
chase of cars for the UTWA, taken by Klenert and Valente. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3497 

Mr. Chairman, we have some witnesses on this matter, but in the 
interest of expediting the hearing, Mr. Calabrese can testify as to 
what information we have, or we can put the witnesses on. I do not 
think we can finish by a quarter to 12. 

Senator Curtis. I think we better have the best evidence we have 
regardless of time. 

Are the witnesses here ? 

Mr. Kennedy, Yes, the witnesses are here. We can put the witness 
on. 

Senator Cuktis. I think we should, where we have the witnesses. 

Mr. Kennedy. Have you made these records on the Trip-Charge a 
part, of the record ? 

Mr. Henig. They have been made a part of the record for reference. 

Mr. Kennedy. Have they been made an exhibit, and the canceled 
checks ? I don't believe so. 

Mr. Chairman, could we have the records on the Trip-Charge and 
the canceled checks made a part of the record, the union canceled 
checks, to be made an exhibit for reference ? 

Senator Curtis. They will be appropriately numbered and received 
as part ofthe record, for reference. 

( The documents referred to were marked "Exhibit 59," for reference 
and may be found in the files of the select committee.) 

Mr. Kennedy. You have rental of cars at Miami Beach, $2,134, 
while at hotels? 

Mr. Henig. Yes, sir. On the hotels we previously checked, we found 
that Mr. Klenert would rent the car, usually a Cadillac convertible, 
while in Florida. We questioned the rental of those cars. The total 
amount for the 3-year period was $2,134 in all paid by the union. 

Mr. Kennedy. Was that the total amount of automobile charges 
that he had while in Miami, or did he have other charges beyond that? 

Mr. Henig. These are only for the periods that we questioned the 
hotel bills. 

Mr. Kennedy. They are only for the particular periods in which 
tlie hotel bills were questioned ? 

Mr. Henig. That is right, sir. 

Mr. Kennedy. So there were other car charges that you did not 
put in here under questionable items, is that right? 

Mr. Henig. That is right. 

Mr. Kennedy. So the total for Klenert, the discount on cars still to 
be explained, the total on Klenert is $101,963, is that right? 

Mr. Henig. That is right. 

Mr. Kennedy. And the total on Mr. Valente is $26,442 ? 

Mr. Henig. Yes, sir. 

Mr. Kennedy. Making a total of $128,405, is that right ? 

Mr. Henig. That is right, sir. 

Mr. Kennedy. Of which $57,000 has been returned to the union on 
August 26, 1952? 

Mr. Henig. That is right, sir. 

Mr. Kennedy. And that $57,000 was returned after the investiga- 
tion made by Mr. George Meany, is that right ? 

Mr. Henig. That is correct. 

Mr. Kennedy. That is the $57,000 which we discussed yesterday, 
wliere Mr, Klenert and Mr. Valente went and borrowed some $111,000, 
or got $111,000, to make this payment back to the union? 



3498 



EMPROPER ACTIVITIES IN" THE LABOR FIELD 



Mr. Henig. That is right. 

Mr. Kennedy. Could we have this made a part of the record, Mr. 
Chairman? 

Senator Curtis. Without objection, it is so ordered. 
(Document referred to follows:) 

Summary of improper use of United Textile Workers of America funds by 
Lloyd Klenert and Anthony Valente 



Description 



Klenert 



Valente 



Combined 



Use of UTWA funds to purchase new homes 

Use of UTWA funds to furnish new home wit'i TV and piano 
Use of UTWA funds to install air-conditioning equipment in 

new home 

Hotel paid-out charges — for cash advances, clothes, etc 

Use of Diner's Club credit card to obtain personal items 

Use of Trip-Charge, Inc., credit card to obtain personal items 
Questionable hotel charges in IVIiami Beach, Bermuda, and 

Maine 

Questionable air travel 

Discount on purchase of cars for UTWA taken by Klenert 

and Valente 

Rental of cars while at hotels in Miami Beach 

Purchase of theater tickets 

Total — 



1 $33, 000 
3,000 

1.000 

30, 03d 

2.003 

1,776 

2 13, 118 
3,702 

783 
2.134 
11,411 



1 $24, 000 



1,000 
670 



600 



$57,000 
3,000 

2,000 

30, 706 

2,003 

1,948 

13, 118 
3,702 

1,383 
2,134 
11,411 



101, 963 



26,442 



128,405 



' Approximate amount— paid back to UTWA on Aug. 26, 1952. 

2 Does not include that portion of hotel bill already included in the hotel paid-out category. 

Mr. Kennedy. Mr. Lynham. 

(Members present at this point: Senatoi-s Ervin and Curtis.) 
Senator Curtis. Will you raise your right hand and be sworn? 
Do you solemnly swear to tell the truth, the whole truth, and nothing 
but the truth, so help you God ? 
Mr. Lynham. I do, sir. 

TESTIMONY OF RICHAED L. LYNHAM 

Senator Curtis. State your name, please. 

Mr, Lynham. Richard L. Lynham. 

Senator Curtis. What is your business ? 

Mr. Lynham. I am the general manager of Moore-Greer Motors, 
Inc., a Lincoln-Mercury dealer at 4400 Connecticut Avenue. 

Senator Curtis. Here in Washington ? 

Mr. Lynham. Yes, sir. 

Senator Curtis. Proceed, Counsel. 

Mr. Kennedy. In 1955, Mr. Lynham, did Mr. Klenert and Mr. Va- 
lente make arrangements to purchase two automobiles ? 

Mr. Lynhaim. Yes, sir. 

Mr. Kennedy. They made arrangements to buy two Lincoln con- 
vertibles, is that right ? 

Mr. Lynham. That is correct, sir. 

Excuse me a moment. One was a hardtop coupe and the other was 
a convertible. 

Mr. Kennedy. Which one was going to have the convertible? 

Mr. Lynham. Well, of course, the 1955 cars, Mr, Kennedy, were 
registered in the name of the union. 

Mr. Kennedy. Do you know which, Mr. Klenert or Mr. Valente, 
received the convertible ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3499 

Well, it is not important. 

Mv. Lyniiam. I can find out for yon. 

]Mr. IvEXxrDY. One was a hardtop and the other was a convertible, 
is that I'ight ? 

Mr. Lyxham. I believe at the time, unless I am mistaken, ^Ye had 
another transaction lat«r on, but the original transactions were both 
convertibles. Yon are correct, yes. 

Mr. Kenxedy. They were both convertibles ? 

Mr. Lyx'iiam. Yes. In January- of 1955, yes, sir. 

]\Ir. Kex'X'edy. At that time, the cars were to be purchased in the 
name of the United Textile Workers ? 

Mr. Lyx'iiam, The new cars, yes, sir. 

Mr. Kenxedy. The new automobiles. At that time, Mr. Klenert 
and Mv. Valente both had automobiles of their own ? 

]Mr. Lynham. That is correct. 

Mr. Kexxedy. Did you make arrangements for them to trade in 
tlieir automobiles ? 

Mr. Lyx^ham. "We purchased their trade-in's. 

Mr. Kexxedy. How much did you purchase those trade-in's for? 

Mr. Lyxham. We purchased Mr. Klenert's 1953 convertible for 
$2,100, and Ave purchased Mr. Valente's 1953 for the $2,000. 

Mr. Kenxedy. Mr. Klenert's for $2,100? 

Mr. Lyx'ham. That is correct. 

I beg your pardon. That is Avhat the value of the car was. I am 
sorry. We purchased the car for $3,200 for Mr. Klenert. We gave 
him $3,200 outright for his 1953 Lincoln. 

Mr. Ken^nedy. That was cash, was it? 

Mr. Lyxiiam. That was a clieck made out to him personally. 

Mr. Kexxedy. It was worth $2,100 and you gave him $3,200? 

Mr. Lyxham. That is correct. 

Mr. Kennedy. And Mr. Valente's car was worth $2,000 and you 
gave him how much ? 

Mr. Lynham. We gave him $3,000, and the check was made out to 
Mr. Valente. 

Mr. Kennedy. How much was his car worth ? 

Mr. Lynham. His car was worth $2,000. 

Mr. Kennedy. How much did you give him — to Mr. Valente ? 

Mr. Lynham. We gave him $3,000. 

Mr. Kennedy. Was the reason that you gave him these prices be- 
cause of the fact that they were purchasing two new cars ? 

Mr. Lynham. That is correct, sir. 

Mr. Kennedy. Ordinarily, the procedure would be that the discount 
would come off the automobiles that were being purchased, is that 
correct ? 

Mr. Lynham. Well, the normal procedure, Mr. Kennedy, would be 
that the $1,000 and $1,100, respectively, would be used in the form of 
an overallowance, as we call it in the automobile business. In other 
words, showing the transaction as an allowance of $3,200 and $3,000, 
respectiveh'. 

Mr. Kennedy. So that would be charged against the purchase of 
the new cars; is that right? 

Mr. Lynham. That is correct. 

Mr. Kennedy. Or credited to the purchase of the new cars. 



3500 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Ltnham. That is correct. In other words, it would be in the 
form of a discount, actually, if you want to look at it that way, on 
the new cars. 

Mr, Kennedy. How much would these new Lincoln convertibles 
cost? 

Mr. Ltnham. They sold for about $5,500; $5,501 for this one; 
$5,500. 

Mr. Kennedy. So you were willing to sell the convertible to the 
union, Mr. Klenert's convertible to the union, for $4,400 ; is that right? 

Mr. Lynham. That is correct, deducting the $1,100. 

Mr. Kennedy. The discount ? 

Mr. Lynham. Yes, sir. 

Mr. Kennedy. And you would be willing to have sold the con- 
vertible to the union for Mr. Valente for $4,500; is that right? 

Mr. Lynham. Yes, sir. 

Mr. Kennedy. But instead you sold these two convertibles to the 
union for Mr. Klenert and Mr. Valente for $5,500 apiece ? 

Mr. Lynham. At full list price ; yes, sir. 

Mr. Kennedy. Tell me this. If Mr. Klenert and Mr. Valente hadn't 
had cars to trade in, and the union had come along and wanted to pur- 
chase 2 new automobiles, and Mr. Klenert and Mr. Valente didn't 
have automobiles to trade in, how much would you have sold those 2 
automobiles, those 2 Lincoln convertibles, to the union for, approxi- 
mately ? 

Mr. Lynham. They would have been able to have gotten the same 
deal that they got, regardless of their trades. 

Mr. I^nnedy. So the union was entitled to a saving there of ap- 
proximately $2,000 ; is that right ? 

Mr. Lynham. That is correct. 

Mr. Kennedy. And instead of the $2,000 being credited to the union, 
Mr. Klenert and Mr. Valente received that $2,000? 

Mr. Lynham. Yes, sir. 

Mr. Kennedy. We have listed here, Mr. Chairman, the lesser figure, 
of $783 for Mr. Klenert and $600 for Mr. Valente, just to make sure 
that we were conservative in the figures, and there is a question whether 
thre would be $2,000 or $1,800. 

Mr. Lynham. In the figures you have there, Mr. Kennedy, there is 
a difference between what we retail the two 1953 Lincolns for and 
what their actual wholesale value, at least to us, was. 

Mr. Kennedy. But the figure we have here is approximately $1,400 
or $1,500, when the figure is probably closer to $2,000 ; is that correct ? 

Mr. Lynham. That is correct. 

Mr. Kennedy. And that should have been credited to the union ? 

Mr. Lynham. That is correct. 

Senator Curtis. Did you know at the time it was not being credited 
to the union ? 

Mr. Lynham. Sir? 

Senator Curtis. Was it known at the time it was not being credited 
to the union ? 

Mr. Lynham. I don't know, sir. I was not the general manager of 
Moore-Greer Motors at the time. I was not there, working there, in 
1955. 

Senator Curtis. That is all. 

Mr. Kennedy. Thank you. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3501 

Mr. Chairman, there was some testimony here by Mr. Klenert re- 
o^ardin^ some money that he spent down in Dan Eiver, Va. We have 
two affidavits on that matter that I would like to get put into the 
record, if we could. 

Senator Curtis. Let me see them. 

Mr. Kennedy. There was a question of $2,500 in checks, one $2,500 
check made out, I believe, on June 16, 1952, which was charged to or- 
ganizing expenses in Dan River, Va. At that same period of time, 
there was another $2,500 check that was charged to organizing ex- 
penses up in Canada. So there were two checks totaling $5,000. 

At the same time, on June 16, or thereabouts, Mr. Klenert purchased 
five $1,000 cashier checks, and there was some evidence to the staff that 
the two $2,500 checks had' been used to purchase these five $1,000 
cashiers checks, which were then used to make personal purchases for 
Mr. Klenert and Mr. Valente, namely an air conditioner, a piano, and 
other items. 

Mr. Klenert, when he testified, said he spent the $2,500 that was 
used in Dan River, Va., in organizing expenses, and the other went to 
Jacque, according to Mr. Valente. We have some affidavits from 
people who were down in Dan River at the time, which indicate the 
money might not have gone to Dan River, Va. 

It is not perhaps necessary to read them in, to take the time. But 
could we have them made an exhibit for the record ? 

Senator Curtis. Have copies been furnished to them? 

Mr. Kennedy. No ; they have not. Perhaps they would like to re- 
view them, first, and then they can be made an exhibit. 

Senator Curtis. Did you intend to interrogate him about these? 

Mr. Kennedy. If we have time, I would like to. 

Senator Curtis. In the interest of saving time, both affidavits will 
be received into the record, but Mr. Klenert and his counsel will have 
an opportunity to examine them before any interrogation is made in 
reference to them, and also afforded an opportunity to comment on 
them after they have had time to see them. 

(Documents referred to follow:) 

Affidavit 

I, Emanuel Boggs, age 50, of 111 Hanover Place, Danville, Va., being first duly 
sworn, depose and say : 

1. That from August 1948 to May 1952 I was joint board director of Pittsyl- 
vajiia County Jpint Board, Textile Workers Union of America, CIO, Danville, 
Va. ; that from May 1952 until July 1, 1957, I was joint board manager of South 
Virginia Joint Board, Danville, Va., affiliated with United Textile Workers of 
America, AFL, which is the successor to the first-named organization and that 
during this entire period my activities were as director of the local union of tex- 
tile workers in the Danville area and primarily of employees of Dae River Mills 
who were union members. 

2. That this affidavit is made at the request of counsel for the Senate Select 
Committee on Improper Activities in the Labor or Management Field and I under- 
stand that it is to be read in connection with the present hearings by said commit- 
tee with reference to said investigation and specifically with reference to the 
testimony of Lloyd Klenert, secretary-treasurer of United Textile Workers of 
America, AFL-CIO. 

3. That I have observed from newspaper accounts of said hearings that Mr. 
Klenert on July 17. 1957, testified that on June 16, 1952, he came to Danville, Va. 
and distributed $2,500 in cash to employees of Dan River Mills to induce them to 
leave the CIO and join the AFL. 

4. I was in Danville on June 16, 1952. I have checked all available records to 

89330 O— 57— pt. 9 19 



3502 IMPROPER ACTIVITIES IN THE LABOR FIELD 

determine whether or not Mr. Kleoiert was in Danville on or about said date. Mr. 
Klenert was not in Danville on June 16, 1952, in any official capacity and I did 
not see him in Danville on or about said date at any place. From May to October 
1952, a campaign was undertaken in Danville among the employees of Dan River 
Mills who were members of the CIO to persuade them to join the AFL. There 
were various meetings at the union hall on Patton Street in Danville, Va., and 
leaflets were distributed at the various gates of Dan River Mills in this city. 
I actively participated in the meetings and supervised, insofar as possible, the 
distribution of leaflets and all other organizational activities. The local union 
was assisted by organizations of United Textile Workers of America, AFL, from 
other points, but I did not see Mr. Klenert in Danville or have any knowledge 
of his being here at any time until October 6, 1952. 

5. My daily desk calendar for 1952 shows that on October 6 Mr. Klenert and 
George Balda-nzi, who was at that time director of organization for United 
Textile Workers of America, AFL, appeared to address a meeting of union 
stewards at the union headquarters, 709 Patton Street, Danville, Va. I know that 
Mr. Klenert did not arrive until the day of the meeting ; as I had attended a 
staff meeting with him at Greensboro, N. C, at 2 : 30 p. m. of the same day. I 
am not sure, but I do not believe that he stayed overnight in Danville. In any 
event, I am certain that he had left Danville the next day. 

6. That the only opportunity that Mr. Klenert would have had to distribute 
any funds in Danville would have been at the stewards' meeting. I was present 
at all times at this meeting and no cash was distributed by Mr. Klenert or 
anyone else. 

7. I further certify that during the entire campaign from May to October 1952 
no cash was distributed by the union or by any member or officer thereof to my 
knowledge for organizational purposes or for any other purpose in connection 
with the organizing campaign. 

8. That since reading Mr. Klenert's testimony in the newspapers at the Senate 
hearing, I have talked with the present members of the executive board of the 
South Virginia Joint Board, most of whom were active in the 1952 campaign, and 
to other members of the union who were members of the CIO in 1952 ; that each 
individual I have talked to has stated that he did not receive any cash from Mr. 
Klenert or any other person in connection with the campaign and that he has 
no knowledge of anyone else receiving any cash from Mr. Klenert or anyone else 
in connection with the campaign. 

Given under my hand this 24th day of July 1957. 

Emanuel Boggs, Afflant. 

Subscribed and sworn to before me at Danville, Va., this 24th day of July 1957 
by Emanuel Boggs personally known to me. 

My notarial commission expires November 8, 1957. 

[SEAL] Herman G. Koplen, Notary Public. 



Affidavit 



I, Max Boger, of Danville, Va., being first duly sworn, depose and say : 

1. That I am 58 years of age and reside at 138 Fairfield Avenue, Danville, Va. ; 
that I am an employee of Dan River Mills, Inc., and am president of the South 
Virginia Joint Board, affiliated with United Textile Workers of America, AFL- 
CIO, Danville, Va. 

2. That this affidavit is made in connection with the Senate Select Committee 
on Improper Activities in the Labor or Management Field and I understand that 
it is to be read in connection with the present hearings by said committee with 
reference to said investigation and specifically with reference to the testimony 
of Lloyd Klenert, secretary-treasurer of LTnited Textile Workers of America, 
AFL-CIO. 

3. That from May to October 1952, I was a member of the executive board of 
the South Virginia .Joint Board of the United Textile Workers of America, AFL, 
and that I was active in the campaign to persuade Dan River Mills' employees 
to vote to change their affiliation from Textile Workers Union of America, CIO 
to United Textile Workers of America, AFL. 

4. That I I'ecall the occasion in 1952 when Mr. Lloyd Klenert accompanied by 
Mr. George Baldanzi, director of organization for United Textile Workers of 
America, AFL, addressed a stewards' meeting at the iniion hall in Danville, Va. ; 
that this was the only occasion in 1952 when I saw Mr. Klenert in Danville. That 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3503 

no cash was distributed by him or by anyone else at the stewards' meeting and 
that no casli was distributed to anyone by anyone during the entire campaign 
so far as I Icnow : that since newspaper accounts of Mr. Klenert at the present 
hearing have appeared, I have tallied witli most of tlie members of the executive 
board of South Virginia Joint Board and a substantial number of union members 
who are employees of Dan River Mills, who were active in the 1952 campaign, 
that all of them have stated to me that they did not receive any cash from any- 
one in connection with the campaign and that they do not know of anyone else 
who received any cash from anyone in connection with the campaign. 

Given under my hand this 24th day of July 1957. 

Max Roger, Affiant. 

Subscribed and sworn to before me at Danville, Va., this 24th day of July 
1957 by Max Roger, personally known to me. 

[seal] Hermax G. Koplen, 

Notary Public. 

My notarial commission expires November 8, 1957. 

Mr. Kennedy. Mr. Klenert, would you resume the stand? 
(Members present at this point : Senators Ervin and Curtis.) 

TESTIMONY OF LLOYD KLENERT, ACCOMPANIED BY COUNSEL, 
JAMES M. McINERNEY— Resumed 

Senator Curtis. Mr. Klenert, you understand that, having been 
previously sworn, you are continuing; to testify under oath. 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. Mr. Klenert, I want to just go back one moment to 
your explanation and your discussion of Jacques up in Canada and 
this $7,500 that you stated that you gave to him for the work that was 
done up in Canada to keep the Communists out of the plant. Were 
you in (^anada in June of 1952 at all ? 

Mr. Klenert. I was there on two occasions in 1952 for various 
times on both occasions. 

Mr. Kennedy. Were you there in June of 1952, Mr. Klenert? 

Mr. Klenert. I think my diary would show if I was. 

Mr. Kennedy. You don't know, yourself ? 

Mr. Klenert. Offhand I don't recollect whether it was June 1952 
or what particular month. 

Mr. Kennedy. Did you not issue a press release when you were up 
in Canada in connection with the Communists? 

Mr. Klenert, I recall having a press conference during the time 
that I was in Canada. 

Mr. Kennedy. Was that the first or second visit to Canada? 

Mr. Klenert. I am not sure if it was the first time in connection 
with this matter or the second time. I am not sure when the press 
conference was held or whether there was a press conference held on 
each occasion incident to my time there. 

Mr. Kennedy. Isn't it true that there was no person such as Jacques, 
and that this whole matter was liandled by Harold Banks, who was 
Canadian director of the Seafarer's International Union, AFL? 

Mr. Klenert. I am not familiar with the role played by Mr. Harold 
C— who? 

Mr. Kennedy. Banks, who was (Canadian director of the Seafarer's 
International Union, AFL. 

Mr. Klenert. I am not familiar with the role or activities of Mr. 
Banks. 



3504 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Wasn't it Mr. Banks who contacted and made avail- 
ble seamen to combat the Communists up in Canada ? 

Mr. Klenert. I said, Mr. Kennedy, that I am not familiar with the 
role that Mr. Banks played in connection with this situation. 
Mr. Kennedy. You never heard of Mr. Banks ? 
Mr. Klenert. I didn't say I never heard of Mr. Banks, I said I am 
not familiar with his activities in connection with this matter. 

Mr. Kennedy. Did you know Mr. Banks was contacted in connec- 
tion with this? 

Mr. Klenert. Not that I can recall at this moment, sir. 
Mr. Kennedy. You are not aware of the fact that Mr. Banks was 
contacted and provided some seamen to work outside the plants of the 
Textile Workers Union ? 

Mr. Klenert. The only fact that I am aware of is that I had meet- 
ings, on several occasions, discussions, with many leaders. We had a 
lot of talk on what to do and about what to do, and how to cope with 
the Communist situation. 

Mr. Kennedy. You had a representative up there at the time, Mr. 
Klenert. 

Mr. Klenert. We had many representatives there at that time. 
Mr. Kennedy. Which one of your representatives up there knows 
about Jacques? We found your representatives up there knew about 
Harold Banks and knew that he provided the seamen, and knew that 
he refused to take any payment for the work that he did. Who knows 
about Jacques? Who of your representatives up there knows about 
Jacques ? 

Mr. Klenert. I can't tell you who know^s Jacques, Mr. Kennedy. I 
can't testify for anybody that is on our staff as to what they knew or 
do not know. 

Mr. Kennedy. We made an investigation of this and find that there 
was violence up there, but the people that took part in the violence 
were Mr. Harold Banks' people and some of the Communists. But we 
have found no one that has ever even heard of Jacques or knows any- 
thing about Jacques. Can you tell u^ any of your reDresentatives that 
ever knew a Jacques up there ? 

Mr. Klenert. I think I have already told you about that, Mr. 
Kennedy. 

Mr. Kennedy. You don't know anyone ? 

Mr. Klenert. I said— do you want me to testify as to what other 
people might know or might not know ? 

Mr. Kennedy. Just give me the name of somebody else, or people 
that saw you and Jacques together, or even give us the name of some- 
body in Canada that knows Jacques. 

Mr. Klenert. I don't know, offhand, anyone who saw me or who 
didn't see me. 

Mr. Kennedy. Or any of your representatives in Canada who ever 
saw you talking to Jacques or heard you mention the name of Jacques? 
Can you give us that name? 

Mr. Klenert. At this late date, I could not give you any name 
with any accuracy about that. 

Mr. Kennedy. According to the records that we have here, and from 
what has been put into the record, you made a great number of pur- 
chases since 1954 for your own personal use, and for your wife's per- 
sonal use, and charged them to the union, is that correct? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3505 

Mr. Klenert. I have heard that this morning. I have seen this list 
this mornino:. I haven't had any discussion about it prior to today, 
when I came before the committee. 

Mr. Kennedy. Did you ever pay any taxes on the money that you 
used to make these personal purchases or the purchases for your wife? 

Mr. Klenert. I don't know exactly how the tax forms or what the 
tax forms covered in these particular years. 

Senator Curtis. Mr, Counsel, in that connection, unless you want to 
pursue the tax end of it a little bit, I would like to inquire about one 
or two of those items. 

Mr. Klenert, in this material submitted by the staff this morning in 
reference to purchases, of items paid for by the union, there was 
on that list an original black coat, $200. I am handing you here a 
statement, and I Avould like to ask to have vou look at it and see if you 
can identify it. 

(Document handed to witness.) 

Senator Curtis. That appears to be a sales slip from the Needlecraft 
Store for an original black coat, $200. Do you recall that transaction ? 

(The^ witness conferred with his counsel.) 

Mr. Klenert. Yes, sir. 

Senator Curtis. Who obtained the coat ? 

Mr. Klenert. My wife. 

Senator Curtis. Did she retain possession of it ? 

Mr. Klenert. I tliink she has. 

Senator Curtis. And the price was $200, according to that ? 

Mr. Klenert. According to this record, yes. 

Senator Curtis. And is it correct that 'it was paid for with union 
funds ? 

Mr. Klenert. It was paid, Senator, and I think that if you care to I 
can explain how it was paid, within the personal expense allowance 
which is granted to me by the organization. 

Back in 1948, salaries were low, and tlie organization granted me 
$6,500 for personal expense allowance which I used from time to time 
for personal expenditures. 

SenatjDr Curtis. Personal expense allowance for what? 

Mr. Klenert. For any personal things that we needed arising out of 
traveling or making an appearance. 

(The witness conferred with his counsel.) 

Mr. Klenert. Actually, the board at that time wanted to raise our 
salaries to $14,000. This, actually, in my opinion, was a form of a 
wage, a salary allowance. They called it the president's expense 
allowance. 

Mr. Kennedy. I would like to say in that connection. Senator Cur- 
tis, that according to our records at that time, or prior to April 1, 
1948, which is what Mr. Klenert is talking about, Mr. Valente and 
Mr. Klenert were making $11,333 and $10,815, respectively; that at 
that time, as Mr. Klenert states, there was a motion to raise their 
salaries to $15,000; that Mr. Klenert said atthat time that if the salary 
was raised, the rival CIO union might find out about it and raise a 
question. 

So they decided at that time, and the union's executive board de- 
cided, that they could take in expenses up to $15,000, which would 
make the difference. 



3506 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Tliereupon, after April 1, 1948, Mr. Klenert's per diem was raised, 
so that ri^ht after that he made $15,040 a year and Valente's was 
raised to $16,040 a year. 

I already put in the record how the salaries have ^one up until 
October 1956, when they raised Valente to $22,800 and Klenert to 
$21,300. 

Senator Curtis. What is the date of that sales slip for this dress I 
referred to, or, rather, the black coat ? 

Mr. Klenert. In September 1954, 

Senator Curtis. September of 1954 ? 

Mr. Klenert. Yes, sir. 

Senator Curtis. What was his salary at that time ? 

I will put it this way, Mr. Kennedy, from your examination of the 
records and actions of the union, was he allowed an expense account 
of $6,500 at that time, in 1954 ? 

Mr. Kennedy. It could be assumed or you could reach the conclu- 
sion, Mr. Chairman, that they permitted in 1948 for him to make per- 
sonal purchases 

Senator Curtis. This is 1954. 

Mr. Kennedy. The resolution passed in 1948 would allow them to 
make personal purchases up to $15,000. But we are taking the fig'urea 
above that, above and beyond that. Any purchases made up to $15,000 
we are not including, or any of the per diem that he received. We 
didn't examine into how he spent that. But in 1954, in answer to your 
question, Mr. Valente was making $18,880 and Mr. Klenert was making 
$1T,880, which was above the $15,000. 

We haven't ^one in to examine his vouchers on any of his per diem 
that he received that made up part of this $17,880. 

This is above and beyond the salary and the per diem, these charges 
that we have discussed today. 

Mr. Klenert. Mr. Kennedy, the figure that you mentioned included 
the per diem. 

Mr. Kennedy. I understand that. 

Mr. Klenert. This expense allowance is beside 

Mr. Kennedy. I understand. 

Mr. Klenert. Actually, the salary in 1954 was $7,500. 

Mr. Kennedy. And then you got a flat per diem of $190 a week, no 
matter what you did, plus your expenses above that. 

Mr. Klenert. This $6,500 personal allowance was still predicated 
on the $7,500 salary, and our position is that nowhere near that amount 
was used in the 9-year period in question, and that the $6,500 personal 
expense allowance was only discounted for this year when, within 
the fiscal year, the actual salary is $14,000. 

Mr. Kennedy. If that is true, why did you make purchases in 1957 
and charge them to the union ? 

Mr. Klenert. Actually, in the early part of the year, the trustees 
took the position that since the salaries were now to be increased to the 
originally desired figure of 15 and 14, that this practice of using the 
personal expense allowance be discontinued. 

Mr. Kennedy. Then why 

Mr. Klenert. I will tell you about that. As soon as I had been 
apprised of that recommendation, I instituted it administratively, and 
wherever a bill had not been paid, I then undertook to pay it person- 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3507 

ally, and will so continue now as we go by the trustees recommenda- 
tions. 

Mr. Kennedy. The record shows that on November 6, 1956, which 
was after this resolution Avas passed- 

Mr. Klenert. No, it wasn't. The trustees didn't make their rec- 
ommendation on this until this year. 

Mr. Kennedy. I thought it was October 1956 ? 

Mr. Klenert. No. 

Mr. Kennedy. When did you get your raise ? 

Mr. Klenert. The raise occurred in October 1956. But for the 
bulk of that year, the salary was still $7,500 and $8,500 and the 
trustees said that "Now that the new fiscal year,'' our fiscal year be- 
gins on January 1 

Mr. Kennedy. On March 3, you bought sheets, pillowcases, linen 
and hosiery for $90.77. On March 22, you bought a woman's jacket, 
slacks, pajamas, skirts, girdle, bra, and petticoat for $50.68. On 
March 28, you bought a pearl necklace for $19.21. 

Mr. Klenert. We told the trustees that wherever we can, within 
the meaning of their recommendation for the entire vear, as per their 
recommendation, we will discontinue this expense allowance, and any 
particular item like that that was paid prior to their recommendation 
can be squared away and straightened away very satisfactorily. 

There were some that fell within that realm, and I undertook to pay 
them personally. 

Mr. Kennedy. Mr. Chairman, we have the resolution here which 
he states gives him the authority to make all of these purchases. It 
says : 

In view of this, Council Member Hyman withdrew his motion and moved 
that the salary of the president be increased to $8,r)00 and the salary of the sec- 
retary-treasurer be increased to $7,500. However, he believed and wanted 
accounts to concur and made it a part of the motion that the president and 
secretary-treasurer should be authorized to spend up to the difference in these 
two figures — 

which was $15,000— 

for such expenses as they may deem to be necessary which would maintain the 
dignity and prestige and appearance of the international president and secretary- 
treasurer while engaged in work for the international union as a part of their 
legitimate expenses. 

Senator Ervin. Did you return this money, the union money, that 
was used to buy these personal articles of furniture and wearing ap- 
parel, for yourself and your wife, did you return the amount of that for 
Federal income taxes ? 

Mr. Klenert. I do not recall how the returns were made for those 
years, what was figured out at that time. There was an audit made 
up to and including 1954, with respect to which the tax attorneys 
handled that all. I am not familiar with that, sir. 

Senator Ervin. You knew that under the income tax law, you can- 
not deduct items of personal expense, such as expenditures for furni- 
ture and clothing, did you not? 

Mr. Klenert. I am not familiar with it. I had a tax expert do these 
things. I am not familiar with exactly how he has calculated it. 

Senator Ervin. You knew that was the law, did you not, that you 
could not deduct it, that you were supposed to return for income tax 
purposes, sums which you received for your own benefit and used for 



3508 IMPROPER ACTIVITIES IN THE LABOR FIELD 

the purchase of personal articles, such as furniture and clothing? 
You kneVyou wrre supposed to pay income tax on matters of that 

'^M';Sr' I know that we had some V^o^^^^ ^^ 
iinnarentlv at that time something had n;oiie awry. But 1 do know tnat 
Shf matter ;-as squared away and that the Internal Revenue was sat.s- 
fiorl iov thp vears up to and includmo: 1954:. 

Senator^™ But now you tell this comm.tt«> that you knew 
something wenJawry and some adjustment was made, but you do not 

know what it was about? 

(The witness conferred with his counsel.) 

Mr Klenert. I am not sure if I understand your question. 

Senatoi Ervik. When you found out that matter went awry, as 
you calkd if did you not iLe enough curiosity to try to find out why 
the Internal Revenue Service was questioning your income tax re 



turns ? 



Ml- 'Klexert. I did have some conversations with, preliminary con- 
versaiions with, an agent at that time, and then the tax attorneys took 
it over with them and they worked out some adjustments, some ar- 
rangements, the details of which I am not familiar with 

SenTtor Ervin. You did not have enough curiosity to find out^ what 
was wrong with your tax returns, or what was allegedly wrong? 

Mr. Klenert. Yes. , . i „? 

Senator Ervin. Whatwasitthey claimed was wrong f^ 
Mr Klenert. They eliminated certain deductions, I believe. 
Senator Ervin. What were the deductions? , , , ,. o , 

Mr Klenert. They eliminated certain personal deductions Spe- 
cifically I don't recall what they were. Then there were some tax ad- 
iustments, fines, and penalties involved, and that closed it up to and 
including 1054. That is all I can recall of it now. 

Senator Ervin. You have forgotten all about what the things were, 
if you ever knew, is that what you are telling us? 

Mr Klenert. If I ever knew ; I have no recollection specifically 

Senator Ervin. If you ever knew, you have forgotten? 
Mr. Klenert. I have no recollection specifically, other than that 
there were certain disallowances for personal deductions 

Senator Ervin. I have often heard it said that if there ^'as any- 
thing better than a good memory, it was a good forgettor, and i be- 
lieve you have one that is rather remarkable. 

Mr Kennedy. Did you tell your tax lawyer or your tax consultant 
that you were making all of these personal purchases for your wite 
and yourself? This is during the period of the past 3 years, not the 
past'6 years but the past 3 years. Did you tell him that^ 
(The witness conferred with his counsel.) 

Mr. Klenert. I have no recollection right now as to the conversa- 
tion that I had each time. . .„ , U ^„r.«/l 
Mr Kennedy. I am just wondering if the person who prepared 
your tax return which you were discussing earlier was aware of the 
fact that you were buying radios, television sets, corkscrews, milk 
stools and'golfer's lamps, handbags, photo albums, ladies umbrellas 
all with union funds, and whether he knew you were doing this, and 
whether he was aware so that he could put this in your income tax 
return. That is all I am asking. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3509 

Did you tell him this information so he could put it in your income 
tax return ? 

Do you want to answer that ? 

Mr. McInerney. I submit that he should not be required to tell 
what he told his attorney. 

Mr. Kennedy. The lawyer-client relationship ? 

Mr. McInerney. Yes. 

Mr. Kennedy. The reason I raised it is because he said that the at- 
torney or the taxman who prepared this knew all about it, and I was 
trying to find out if he really knew it. 

Mr. McInerney. I didn't understand him to say that the taxman 
knew all about it, 

Mr. Kennedy. That the taxman who prepared the tax returns? 
Maybe it wasn't his attorney. 

Let me ask you again : Did you declare these matters in your income 
tax return? 

Mr. Klenert. I have no recollection of what those income tax re- 
turns contain. I didn't prepare them personally. I think the com- 
mittee has records on that and is more familiar with it than I am. 

Mr. Kennedy. Is there any statement you want to make on any 
of these items? 

Mr. Klenert. No, sir. 

Senator Curtis. Do you contend that in the year 1956 you were au- 
thorized to spend union funds for personal items to augment your 
salary ? 

Mr. Klenert. In the year 1956 ? 

Senator Curtis. Yes. 

Mr. Klenert. In the year of 1956, 1 believe that the present expense 
allowance was done under proper authorization. 

Senator Curtis. MTo. I asked you in the year 1956, is it your con- 
tention that you were authorized to make personal expenditures and 
charge them to the union for the purpose of augmenting or adding to 
your salary ? 

Mr. Klenert. I believe we had authority to spend up to $6,500 for 
personal and related expenses in that year, yes, sir. 

Senator Curtis. In 1956 ? 

Mr. Klenert. Yes, sir. 

Mr. Kennedy. He got, as an allowance in 1956, $9,880. We haven't 
included that at all. Above and beyond that, we have put our figures 
for 1956. 

Senator Curtis. We are talking about above and beyond the salarv 
and the $9,880. 

Is that carried as per diem ? 

Mr. Kennedy. Yes. This is all above that. 

Senator Curtis. Do you claim that you were authorized to spend 
$6,500 on top of that ? 

Mr. Klenert. Yes, sir. I will leave that within the meaning of the 
board's action, that we were entitled to do that. 

Senator Curtis. Mr. Klenert, all I can say is that while this com- 
mittee is not a court and has no power or intention to try to determine 
your guilt or innocence from the standpoint of violating laws that 
might constitute an offense, we have gone into these things for legis- 
lative purposes to see how the affairs of men and women who work 
are handled, how the officers of unions operate. I must say that you 



3510 IMPROPER ACTIVITIES IN THE LABOR FIELD 

and your associates have not impressed me very much on the favorable 
side. 

Taiion funds were used for the purchases of liomes for both of you. 
Later, after an exposure, they were returned, it is true. But in the 
interim there were not traces of evidence that the rights and property 
of the union were protected by information and records preserved. 
You spend freely of union money. You point back many years in the 
record to vague and uncertain resolutions authorizing that. 

It has shown a complete disregard for your trust as an officer of 
the union, and, to a somewhat lesser degree, Mr. Valente, and also 
Mr. Jacobs. 

I think it goes far beyond carelessness, poor bookkeeping or slip- 
shod practices. I think it goes to the very essence of honesty. 

The way you and your associates have run the union is a striking 
example, is an illustration, that here is need for appropriate legislation 
in this field. 

Senator Ervin. I might say that I have been astounded by the cal- 
lous indifference of the top-ranking officers of this union to their trust 
which they are supposed to exercise for the benefit of these men and 
women who work hard and pay dues to this union. I am certain that 
the members of your union are not aware of the fact that expenditures 
have been made for corkscrews costing $25.20, or sport canes, jackets, 
tuxedos, toy dogs, toy airplanes, sheets and pillow cases, luggage, photo 
albums, radios, television sets, ladies' gloves, pajamas, sweaters, T- 
shirts, diaper service, rolls of film, handkerchiefs, golf balls, the pay 
of caddies, toy poodles, phonographs, record albums, black coats, black 
suits, blue and white dresses, sunsuits, bathing suits, beige dresses, blue 
dresses, candy, trampoline lessons — whatever that is — girdles, petti- 
coats, hose and slips, and scarves. 

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

Senator Curtis. 1 am not suggesting what you should do. You will 
have to deal with that yourself. I do want to disassociate myself with 
the suggestion previously made here on other days that you take cer- 
tain recommendations to your organization. I think you ought to turn 
the organization over to somebody else. 

That is my personal opinion, not banking on anyone. 

Is there anything further, Mr. Counsel ? 

Mr. Kennedy. No. That is all. 

Senator Curtis. Is there anything you wish to say ? 

Mr. Klenert. No, sir. 

Senator Curtis. The meeting stands adjourned. 

(Whereupon, at 12: 20 p. m., the committee recessed, subject to the 
call of the Chair.) 

(Members present at the taking of the recess: Senators Ervin and 
Curtis.) 



APPENDIX 



Exhibit Xo. 1 






1*1* K •Tmnt. N w 



Kts. ElVht) (-Ro\! 






RCALTOn 

SALtS • LOANS • INVCSTMCNTa 

WASHINaTON S. Q. C 



Wi^bing'tm, DC . A.. 



jKoit o( ihe purchase 



1) I'rKf ki_et,. 




:.!l»r. (».»,i.O!.>0.pC ) 

,DDttB» 

a!! be a ;>An 



pun-tia*tr i* lo exetute ami iklner a wvMml dwl of trtiM swiirnl on laid prntii«e«. to Iw paid in mimih 



pvrr, i'l ' "■■(■:i:in;* '■:;>; (Tigris ;i;i ' r; <rM-ti •??> .: I'\"f»is .r^rrw;^ '.i-r u'-]'*-^.- i< 'i' iK- !'-Mtrnr*i a:»'i viir -irvianr*! 

otT ftt t>{){u>n ot l!n- fturcha^r. unless ihe (ictcfts Ate oi siicK t*harai-trr Uial ttwy niav rcidily 'v n?rrK(iietl by 
le»;ai acli*»fi. huf lav <ii'IJpr am! Aiient a>'^ hrrrhv cxprrsslv rrM-aM-d intm all liability for 'lainairc* by r^ascm of aiiv 



Scllfr agrto to giv 
•ellcr shall ixxonv an ! ' 
lo qml provided ' 

(») N-lter a. 



»»^<' •!!<• • -V v" ; '' • > rn .If- 

of tht fxamina!i>n ')' •>«• tit'* al- 
though th« »aJe had actuarj >«« 



3511 



3512 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



> 13^ \\ iihm. ;^.^ ...days from th< dwt ''<"' ^r '•* *''^'- '"^ *» »"«" Ibereadcr 

wi i rc-[wrt on thr titk can be wcnred if promptly ordtrfd. a.-. , ; ■ rnt.u:r,i ;'<• .cilrr »ii.J ourchMcr «jre 

reijairwi md agrtt lo mike fnl! »tttl«n«iit m accortianot wirh the tetim Iki • 

It the purchiKT ahall f«l to make full Ktthanou, the dn*'*-! heri '^U ai tbe 

OptJon of the «ej!er, in which e^•ent the parduiMT »hall be relieviMl froni i '". wtihout 

(oricitii^f the depow, the sdkr may avail himself of any legai or njvutable ngk;^ aJKl ^cnsejici, «luvli he may have 
under thii contract. 

(U) The entire dcpewt rimU be held by J. GARRIiTT liEIT/ELI., Agent, until aetllement heminder 
ia made or unlil the deposit i» forfeited. In the event jf the (orfeittire of the de(*>»it. the .\jef« thai! retain 
one-haif theret»f aa a compematiMi for hl» service* and ahaU pav to the jelier the reim>mng ooe-half of the 
forfeited deposit. 

(18) !f the property invofved in this contrarl U located in a jtirijdtction other than the t)i»tnct of Columbia. 

»rhere\.er any reference ii made to tfw Dutrict of Colurnhta or any cifficial thereof, the flame of the jori»d>ct»on 

ii. ».!,><-h property i« kxaled and the proper ofSdal thereof i» »ub>titu«ed autonaticaUy If ftv ;Tt>j<rty :> wrviced 

. 'rn^nn Suburban Sani'ary Commiwion. annua! benefit charges of said t onm- • »>! 

-insfer and a»8Ultted tlicteafter by parcha*er, 

. .; .Wier ;.gi<Y» to fay so J G.\RRETT I'.V.IT/FI.l.. Agent, a comrrawior ; 

' t amuuni witich uid ciHrinvMion l<eing hereby- au>iiiaed 
party thrtxigh whom .^fttlenwnt berrurwJer 14 m*de (« 

'■ al ,rr^l!,i f.n;r.:\yi,m i-nm ttic ■.T'KTe.ls nf ttie kale 

f. of tSeir 



j G^RRKTT 1' 



un<lerti{ned, hereby ratify, accept and agree to the above moDorantJoni of nie and a dtn ow te i l fe it W 



.->■/] 



fS£^" 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 2 



3513 







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3514 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 3 



IH.CASC L(»T tAC*^ CneCK SCPARATEUy 






MMMM vitr 



-t 






'"^'^ . .^i5^ -- 



nvmmt* Of CMtKut 



5. 



Security Bank^ 



t> inMN: tkM Ml* ii n iiw>iii » w l m ut m t tj *•!) ■■< N 
MaMa OMW «H lu am MdKaxa; ikal tka Baa* ar 
■at>a mt M aa l l awv MM Itasa, «MNt7 ar 



(MM kaMn aHaal tttal wn 
M*. aatf •*! kti 
If «(«U» tka 



Ita* 

ti Ml » IM ) i« » i in < mIM) at anivai > aaaaax; UM< » 
•aOactlit kM4t at iiinwi tka Baak law (ttr» Ma* 
■ ■M »l arl laaacM Ua. It Mr: Uul au 'atlwa (i; tka BMk 
» aa<aaa> tkMa ruhu Mail Ml M f al r aai l la to a ntraa 
Ikanat. aX aal iMa wi a yal u Mklan i> all Ian a«< 
w w rl a U i a x a( tka t'M(a4 Maua aa4 at tka IMaMn af 
OataBMa M» aa kanaAai u faaaa. 

TO THt CREDIT 0»^ 




»LCa>t ;. »T t»c» CBtca 

>c»a*rikY OK rut •*o< 

0' TMi« DC»0«iT tic«»T 
TOTAL O»'eM«C«»0*l 



TOTAL 0» CMtCH* 0« 

OTM(* arakMiataroN ajtHx* 



^(OQ 



GMpam 



Tool! ^(.CC .V 



SCE THAT AIL CHECKS ARE EMOORSEO 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 4 



3515 




3516 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 5 



Security Bank 



*/ c 



/ ^'o c^^U/ 






'l£l[ 



Tat«] I 



' % mt. tMOORSlti 






imFROPER ACTIVITIES IV twtt r 

^ I.\ THE LABOR FIELD 

Exhibit No. 6 



3517 




;r !^ 



5 5 






ill 




S9330 0-37-pt. 9 20 



3518 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 7 



Deposited with 
Washington,!) r. 



»«• ••'J •» (lotwl***'! twx«<l<wl MMK •»<» M»o»« •• r»«n»i«illtll«» 
lMr<>»<< il» .»i»tM •( <•• •»»• *1! l»««»l •" ft«>l<«« MbMrt U *Mi 
MroM. UM 1» >«••«*• «< V Kttm tt «Mi JM-raM IB 'MO « »!»»! 

<f»4iii M iHl. ana* *t u »w« ]Mm Ttili Km* b«; 'iir».>4 li«»« w 

urmrlim »t»««l •»<» •■ »«• «« f« »m~« !• !«•#« "4 ««► 
» M'i »Mi «««<«it «>«» «• fc» «••»• ••»•>« »•» )t» »•» mtmmn «*•• 
mat uwlr »T«n>«ti mu »• t wi « l»« >» ••» r»«»nl «<»•'•• <>•<* I* »■ 
nmM» ii «ii* «»»itM»u W%tmt\ ««~r». ^i»« m4 6j mi. »*•« •« •»>' 

•■■MpaKtau l« < i i i n ii wtrt •» 'i i i mim "»•« ]m*t •"" •"» 

fJiwiMa •> jrowtcn tlM « »«•>•) l«.~r»» •*•* imS •» « »««« 

MMtW Iwd to M> V V<tt aAr MMr l>>fcl MMnt V«t> ••M M; 

t**ri« »v« «t mi u»» iw>»f t« BKlmw «> !U »«•!(»«• <toj MIC 

r«l|«»lii( U» *•» n< rw.lM u» !!»«> *•»». »• IXU »»»• •»!'« i» 
a|Mvn«iM4 *• t>« *!»«> i<«''- ;»«•(»<■ *r'- '->" ^i -.r o<h»rwi»« nM foa«l 

lw«r »tMH k* tta^iii ' ' TTtia a<«'^Mtnt tt 

•( ('>>lua>»l« »• •! < .1 itM 

TO -m* QUlBiiT or B««k N«. 

MUTUAL TITLE COMPANY 
D.te TRUSTEE Mt^UNT^ad 19 ^2 

O -- — -^ 0OI.I.AW5 CTS 

M 

o fnrr*nc\ I » X20 . 00 

o / 

w /,,//,. „ . 12 

w 

t i>. c»»« «"<'»» »«"*»*'•'-''' 
§ /^->- -.^ 

u 

>- Pftr"etuTi ■■ i. "-'. 

; •.^«. i^iei BUI. 87 

Coi. Inv. 15-^0 . 300, 00 

Uultod TBxtila Worife'— 



7i<W_ ._ to,606 ^ ^ 



f^i 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3519 




200S K— c«»h .12 

2039 D<^!fhton Col. Mtg. 11,?$0.00 

19U0 FMt* ct U06.$2 

?1?7 Ros» Perp- Bldg. 

ta Assoc. 8Lli.87 

?lh3 ^naon HW Mutual 12,71^.00 

Sf Col. Tn?. 

*" cash 



2??3 


Klenert t 

of 


Valsnte 
Texlil. 
Amer. ck 




25,606.51 

95,000.0^ 

Works rs 


120,606.51 



3520 IMPROPER ACTIVITIES IN THE LABOR FIELD 

. Exhibit No. 8 



u JtSiAS 



Ml 'XI 



•.VI. XlXI-K < 'O.^U».VXV 



EDMQNOB BUILDING 917 ISTH St.N. W. 



a^-CM^Q «^I^vr -cce^^ <e^ ^^jeZ^n-^rt^ 



/n Mr V/oi/pr o/ 






!'>' 



"■^ 



i*»o 






W.iHT K,.i,t ^ $ pd. to 

TuniaiJo Iri's. 5 



,MU| 1„ 



^^^i? 



>i';y^ 



I 



/> i' >•-? 



Ciitneyanciiig paid 
Deposit 



Fi«t Dt-ed of Trusli^^^iA. Z^yC x^ ^o 
inleiPst accrued fnun ■S] ll( ~^ '" ^ V' ' ' 
ikiiius 
^SBond D«-d (it frurt 
InliT*-!.! aciued Uwa -^ J 1 1 f "^ ■■> "* '^ ' \_ 

MeiftxcA payments 
ftOUKf Taxes paid to 7'xy'v -V '^i $/Vj *"- 









v<hl DC 



C-Y-i f 



SJ> 



F. H. A. Insurance 



Title ln,,ir;.t,<y 
^ExaniH 

p'repaniig !)«-i) g 

[tecording Deftjl $ 
*Joting & txartiiiiiTit; 
iNotary fee 
ISenliiii. lit Kff 
Registenuu" \uli-^ 
Revenue "-unui-. h-.l.i 



Survey 






Stale $ 



Balance ^:2^ 






J07J ^^fojryz 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 9 



3521 



«.T.C. iii:<? 



e O M Q -v o a L' u > L _- 



lloyi tleoBrt 



„il, UXook lc> 




) I.. 



\|.i., 



.aa - Ktiultabl* Ufa Ina. Uj. 



Frorjt ' oot jr i 



,' .00 



aacono trust 



i^ j7 



fc ^0 



t««a stan^pe - a«e<m<t troat 





7^ 


75 




iob 


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Holcso $ 


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bl 


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Balance DtM t« S«ttXa 



yi,W>' f'" V,950 3«" 



3522 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 10 



r„,,P v„. ».T.c^SG»3 






Mi'XI'AI. Ti'i'I-K i '<»I1».\X V 






M A » V L, 4 r, i:! T ! " u " t • a '.^ ;»..;» ^ < -» s 






EDMONDS BUILDING 917 ISTH ST.. N.W, 






krXbmir i. ?«1«nt« l<*y S, 




l'>52 


,) P.TtCHM;! xJOK P»rc«l A^fU.lfl Hjaaaa •;; 




j.^» 


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Vj.|„...- i - ^ 


27 


.aiii 



liable :,1l"« :r», , o. 



x»oo 00 

17.«U2 SJb 

11 3i» 



-30-5? 



"' Slj?3.61 


6I» 


71 


',?o 






30 8«oo«3 tniBt 


8 


50 



16 OL 



i $ State $ Da«d 



63 


75 


96 


00 


5 


00 


2 


50 


1 


00 


?5 


-X) 


Ut 


7i 


U 


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FJalance 



itu« to MttUi 



U?, ^3 



. 24,013 7( 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 11 



3523 



No. 



6057 



if> 






S,.- \ /t 



No. 6058 



i(> 



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No. 



6059 



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3524 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



Xo. 



6060 



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I 



No. 6061 



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4K? !♦» 






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IMPROPER ACTIVITIES IX THE LABOR FIELD 3525 

Exhibit No. 14 



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3526 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit Xo. 16A 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3527 

Exhibit No. 16B 



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3528 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 16C 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3529 

Exhibit No. 16D 



?12 


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3530 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 17A 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3531 

Exhibit JNo. 17B 

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itari n, . 1 


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TRUSitE ACCOUNT 



3532 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 17C 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3533 

Exhibit No. 19 



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3534 IMPROPER ACTIVITIES IN THE LABOR FIELD 



21603^ 






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IMPROPER ACTIVITIES IN THE LABOR FIELD 



3535 





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3536 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 20 



eeting Of the Kxecutive Council, United Textile Workers 
d America, 5iierry Frontenac Hotel, ^.iaini Beach, Uoriia, April 25, 1^52. 




K(>^!tivt Cr>'jacii also 'i^'T^.^se-! tha' portio.i 
:i. .:-ecr.'-~ ■ - - ....sTi. .y . -...y-j. . J the Con ■ . _.. .^..crrei 

-•liii iing to hotiie tht- Intf-r:„-{t or^Xi '-uio.-, an'i.''or the 
pu-ctaov CM i ' -^ ■,.■■'•; ;it pirpodei). 

I:i acc^. ih the actioi; taken by tl ' " ites to the Con 

-. niaJe by Vice-President Groent.i and seconde ? by 
Vic ao that th._ cretary Trtasurer be 

authorii'^ i ' .^lit... of p^rclia3i,.g .jjch p:-op'.rcy and 

A 

. '^i..e u in consir: rTatii. "t^ons 

...isiy 

.jUo/.Lig; rc.iolutlon was aloptei 



:thorizert to convert into ca 



kers of 



.inization, a.'i 



Kesolve i that penHling the conversion to cash of 

Six.'. • u.ci:,!. Ih.ti.lb uiat l!;v? ;^erctary -Treaauri^r be 
authorized to negotiate a loan from the City Bank In the 

: '■.-' thO'-sa'- ~ ' ) loUara. " 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3537 

Exhibit No. 21 



Jndiviiiu»l 



Name 



Kndorsers, if an\ 



^t". 



PartniTship 






y 



Secure<i 



V Unseen rtii 




Ifit V^t^, 



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provisions for payment -f "*,. . : '■ 



^''--c>-C- e-t.^^*:^. 



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Is authorization on hh 



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Date of last statemeni 



^' -4/ 



Miscellaneous remarks 



Phone number 



■anji^g officer y . .^J^^yf'^'^'"^-:- ': _:' , 



3538 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 22 



TO THE LIBERTY NATIONAL BANK 

WASHINQTON. D. C. 

j^ Anthony Velente 
Prfesider.t 

certify that tl.L ^. _ , ., 

E>.ecutlve Council organization 

JSRvM«> ; . 1 thf -..M.i ijojqjDJaXiStii '!"'•> helH .it 



ricaj, A. 



October 

icct at '1-"- -I 



19. 46 _ a quoruni l>eing prc-ciit. and that ih- 



ndrrMtjncd 

■ ! !:vr,-by 

fill! force 



j}.-q( )l . t.:nt Ar. th^ny Vsiente 

orgbnisation 

>w. from tmif to time, on l.chalf o{ this Oafk^mibM. from *& .a"j Source 



► In 



Uih t< ^m^ „j !iv>\ !-. Hitiij . \ctute 

r-nts m the name r.f the KOrjtxauaC ifir tlic rep.-iMn'-nl of 

organization 

organization 
-^ {lapei bflons,'ing to this 3£lafllflietatflCiiia>!c or 



part 



or>-ini za l Ion 

y. iiaf>i!it!(-s o! this iJlXptXXXX to s.-in! l.:.!ik Jr. ■ ■, upon 

i. :-'.\v or mtatisjil.k- of this CJUtptiUtteH at^d 

organization 
1). E.xecutc in such form as may be r<^uired !iy t! e li.irik. all imti.-i sti'i o;} 
all instruments of pledge, assignment or lien, and that sn.nr (4' the -anie <ihail be • - 

endorsed. 

This resolution to he in !):V. ,, %\v--i'.- h ^,,! : l ;'.•:■ K ,:;: i :.: \'.i-ik which 

notice shailhcrome operat!'.! 
be required, m any case, l<> '; 

r' ■'■'""■■" "r r.f the procecuo ;.-.^.,.; .... , . .,._.,, ... 

organlzat 1 : . 
1 ne atK-.ve resolution is in accord with the By i,.iws of the Xi6!{SlJ>ali(KX 

organization convention of the organization 

The following are the officers of this KaOtiaUIy, elected at a i«*8iajf!.«J^H«J!aoW«*-«Mliaj**» held 

on the - Snc dax :,{ M a J. j, 19,46: Anthony Valer.tej Fr.eslcer.t ; Lloyd Klenert, 

Secretary-Treesurer; Vice-' ■ *:s James "srlen, . t-rar.- ,• '- ; , 

Edward Hlrschber.ger , Franc: ...,>.: enbil , ,.■!'"'•• "--lllns, ... . '.vr-'':. 



IN' WITXKS.S \\'HERE(JF. I have hereunto affixed my official signature and the seal of the said 
organization 
I OBJpuat*!, this ^.QXa day of.Jan^aryj. lw47 



j^SEAI.) 




^ ^:.^:.^-^--^ 



-L^ 

President 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 23 



3539 



LiBER" 



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LISER r 


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•C>UNT 
a; bank 



;4^ 



3540 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



United Textile Workers of America 
818 13th St. . N.W. 
Washington 5, D.C. 



LEDGER 






* 97.U40X0 



^nm 



Jll -5-52 

vvL-8-52 
"CT 10-52 
Ji;^ -9-55 



ioo,oL)o:88 



1 * 18.000.00 

* H5i^Uo.oo 

1 ♦ lil.828i53 
1 * 12.828^8 
1 * .00 



f 

3 
4 



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«MI 

12 
13 
14 
15 
16 
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18 
19 



21 
22 
23 
24 
25 
26 
71 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 



Lilx rtv Xdlional H«Hik 



Wa>.hinvt»>ti l>.C. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 24 



3541 



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s88 8^58l^>S^8| 

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31 






3542 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 24A 



ii.pt •»1>»r 8. IT^.-^ 



Mr. LlO]^ Kl*Mrt, laMrwttloa*! Smormtmrf-'TTktnrmr 
Oaltad Tsxtllr Vorkart of A«*rio« 
k«Jitila«toa. C. C. 

Q(«r Sirs 

*tll /oo yit^^a •••• that tfMt aDCloaad four ccplct of 
• u4i4-l«»«nt»X «*t4i., l« fllaa with the four c^jjlx* of tar raport In 

/our i>o«»' ••Ion, tb» ftf»« co»jf tuk* bsca <!»«« to tjv *j»«irt'«n 
r»a«r«ttloa <rf i«i«bor to ^ «tt*ch«a tc tl»» eo^y in th*»Sr ^o«. amnion. 

Toora vary fenaljr. 



IhK' J. JA.«8(vi< 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3543 

Exhibit No. 24B 



CRIC a. JANSSON 

CCHTirilO PU«L<C ACCOUNTANT 

• iS r.rTttwTM »»»€«:' ~ •« 

wASMiNaroN a o c 



eptt-mhf^r X. l'>V 



Uait4K> T- zttl* ktoncnrx of Aarrio^ 

0(iati*MK»: 

In eoBMCtion tdth mr r*; ort of Jvam yovh, e*rt*iM i«rtlB»'Bt 
cmuwnt* MMt b^ *k<!<i*<t «•«•! »r« tM»r»wi Ui •Uttt^a, to Weoae |><^rt sf t>w^t rv^^^trt. 
lMrt«x thm j^ttaul rowr»« of th* MMclt, I >«»• <5l»»-B thr imhi-suItoo*! «i»««uTfci>c» 
of thr Prrsl^oiit ^au th* ^rr»»*.iTr-'."rri--ur«r th»«t oarti'la chocitf dmvn ^jfcjri'bl* 
to c«i«h w«r« o»»o fcr pro^^r er^i otiim; ^ttrpoana. A •eheaulr of t>* i"» ch»CK« 
Ik «tt«i:h«(t horawlth. jh A«|;ust .'jVi thi If-ttt-r fro* thr .4ntu»>l Yltl« coM^.qjr 
with tr»<r ritlo c<ai^ ny'# eh»cn for $«>7,rM**).00 •«>■ Mshibitiivs to ft*. Thl* wbs 
thf ftrat tlan bQ/ ai^attofi hu4 Imob afMi* to «• tagr th« /msl^HRnt <b.aa •« rvt^krx- 
iT*iu.»%irmr th« t th««« <il«b«nM>)»»nt« v«p» mula for u bulletin. >li¥;« tfv i«"tt«r 
froa tnr tltl* coMtiiiajr d«s«rlh«is th* rafoaa »• <i a«,o»lt. th*> •«.■• AaacrlpttoN 
1« u«»<i In thA dl<«t>ur*«M< Bta •tilwdt*!*' tn i4|r m .ort. 

3tMc« * Cf/ of iV r»^ort »*»• t»«»»-a ffl»»'n t th» A4wric*>a l^*u«r*>tloa 
of Lobor .ii( >o«»l'Jl/ to otJv«rn, l« conn* ft I'm witn th» currmt afforta of yo*ur 

>rfi»l,*at »iiii >cri«t«ry-Tr»Mi»nrar to obt«tn owtsl i*- financial .An, \n agr 

cn-'^Tui o^jlaton It 1» ♦••••►Bttiii that th. for»"<oln(5 co«a«>nt« tovfaUar wltb 
t^<^ tkccoa^nytivc •chwiiuia ba »itt*tchrd to ttati mu^^l^ m purt of ajr rr^rt dtticta 
A«ti;n»t -'«. i )^«^ ccTorln#c t»a ,artoa froa April 1, nv to Jo*.- ^c, ITV'-. 

T'Jura **r7 truljr. 



Uartlf 1< a x'ublte <voeowitaRi 



3544 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 26A 




p-x io tbf order •* 




IMPROPER ACTIVITIES IN THE LABOR FIELD 3545 

Exhibit No. 26B 



V 



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3546 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



EJXHIBIT No. 26C 





|«y is ttK order of 

SBakrrv bok 
JUN 1 b 

Par fkf^i t' i''' <.-''m: ui 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 27A 



3547 






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3548 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 27B 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3549 

Exhibit No. 28 



arricE copy ^'fe? l/^ ; 

CAMPBELL MUSIC CO., INC 

!108 G Slre.i, N. W. Wa.Kington, D. C. \ 



/<d^....:^f^'- 






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sn^.-^o o — 57 — lit. 9 22 



3550 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 29 



-^ flbiAai- 



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DFFICECaPY *Zi>«*?9^^ J 

CAMPBELL MUSIC CO., INC ^ ^ { 

1106 G Str»«t, N. W. Wathinjton, D. C. 

^ . .-. . .... . ,... , . ,._.._, ,«.-»,-. 






^-- /:.tvi / / (Apt, No.) OPhonNa,) 












J 00 1(0 



^*VJ^ 



^ERY DEPARTMENT (INSTRUCTIONS BELOW) 



'/Z.,.JU^ ^,^:JU(k^/f, 



.■'..-..■ ^ ^ r,Ey( 






APT NO. 



r INFORMATION (BELOW) 






C'^^vA^' 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3551 



Exhibit No. 31 



a; 4 



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3552 



IMPROPER ACTIVITIES IN THE LABOR FIELD 




l» inn «. 



.t'Cil'X^xr 



5u<u <tt Mm 







.NO'iicE TO iii;yi:k 

'«u arf eiit}t!r<| to a ropy of this apre^metit at the tiint' jtm 
»-ign it. 

2. I nder l)u 'Matv law rrgtitatirm ii»>*talmrtil *«ale», you Ea.vc 
r«"rluiii rip fit-, aiuoiig oiht-n*: , 

(1) If) pa^ «jff ihe full amoiiMl liue in advasce and obl«i» 
a |»art.al rrliatr of thv Cnmotv rhargf; 

(2) U) VfAi riv, lh«* proj>erly if rrp«»ft^«»«Hrd for a default; 

(3) to r«'«|iiiirf, umitT «ertaiii * ■ . < ,|^^ 
, |>ro|H rill if |»r|iJTM»*i«--«>*pd , 



<»C a <^>py of llic Above Agr«-«!tifnt 

SifriM'd by the SeOrr 



UNTU. THK Bl YER ITNDER kS INS14LMENT SALES 
AGREEMENT Kt< fclVES A COPY OF THE A€REEMENT 

SIGNED BY THE SELLEIWTHE BUYER HAS AN IINGON- 
01TIONAL RIGHT T<> 1 A^« El THE AGREEMENT AM) 

RECEIVE A REFl'Nll i}¥ AIX PAYME^t^W MADE ON AC- 
COUNT THEREOF.— ^ / 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3553 

Exhibit No. 32 



SI 

1 ^ 
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550 






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3554 IMPROPER ACTIVITIES IN THE LABOR FIELD 



, Iie*OEf AKTl PLfiASR RKAB CA&EFULLy ! 

COM&malM AMD -nMH 

Tk*' 

U) te pmr*km— th» wU aMMIUMltiM Kn<l (Mkf tk»Mt»r Um «««•! purrlMIW prior it. 

(t) TtHi4.tlll« te nrtit <rf tjwiMtrn. «>ui owMrtkta oj ■>><! pira»««Yr to >j»4 dMi) rm.l* I'mwi ta 

CUM O0mt>*iy, )t< i irnn rw w t a»4 aMMrx, aitil »sl4 total p^rhm* (>r..* (i^.l aiu < . n •>•: -nonao 
t.l > t m * h falif pakl in tmtk. 

it) TWt «>tM iim Hi« iWfci !■ M'»> Im >mI i »■»«<■ pn«*iui i>rai>*rt|'. naranlkMi of Om ■>«um4 of tovui- 
MioK *r Mlluittoa of Mtd> swridMMtdriM. eoUt (il* Mkl t«Wti t>srclM«* prte* »M tmt jwii-aM^t r«*l4«r«l 
t)Mar«m i« «n>' IvM. >• <»^ 

M> TV-MU caaA wr* of Mt4 vr«r>n<r *»4 b> rw rt — ifcW f.>r Ht ym kr th»fl. ftn -r ,.th.r»«.. 

at N •! «• ?>•»»•« mmo'Xt a trtm Uwr J/I»^ »btr» or>«ir,»; . it««««»<) »ltlk .t w^t"- • '• • ' •"< 
uM Camitnf. •»<! Ik Um vnni mM nvrrtas^M ia naxiia Buyer urn* V> >>.:li) iv^.'X- >■ ■ •i«rt 
t^ tir«ir««d« «f aiMil MMbUi tip W ftnd >n«Ju4JM tl»* &mo«sl ul tM n>ip*t4 {»urch*«i i - • ^' '>'- for 

le* Not t<) OM ar ir««t tjMt MUM .jr •«» |>«^ or »t»K*»»nt t!>»r.< ' v<m* t*»r >.n«i> Oi»S 
tor which It w*M vrirtn*'!)' in >«•<*«) >tul uitlMr<M4. 

("t Tfc»« tb« owatltlr t.«>n.«int mtj Iw Mi!«4,oi> tiwt inKwitkir »•• t r .f *• ■ ii«>»iir. 

Ill Th»t Mm Qc««P«r.jr *«, r«t«>i> ud »Pi'tr tc tko iNum»nt of tjii. w. • - -^i • 

r»«d«r«l tkcnwB, li! *«l«<»ltrl m«.1« hi t)>t «0>»r I. r fU »»rv»fe ..^ ir« p.i" 

■ stl! fuU p*m«llt hu ixMn m».l> ft.r tht« HMri )Mn Jl«« arxj trtr )<I<j|[«!«t>t r« 

I a I TWt TSm* » th< «««<MM t>* tjllt >«ir*«M«nt. 

ii«m«i«nl. At ur<p«.iil b«i»np« I •». ' ^«|>«.t s » «>>«'.i. • 

»>mtmmlfti at Um m»r.h«i. :.»» ■■'«: k«vtri» t«k*r. j..a»«ai. : j; ,,- 

from t** prt itw l ftd » .# »xp4fUM» j,-** = rewth a« r*-. 

W.4|m p» ''!<twi*« pr**-* n ^rmi ih*ri»on * 

<•« :i »«♦. »., 'is- •- !---^' •^t- .-•.cto, aflw ii~ 




f ) rf lh« «.«- hj>a4l»« .i»t*.i 
r. Krt>nirOTn»tiu utltrMtorr t« tsh« ( mbcmh* 

NOTiaK TO Bl YtR 

1. Yoo are entitled lo a copy of this agreement at the !im«» you 
Higa it. 

2. I nder th«» Slate law regulating in.Htalment sale**, you have 
certain righiM, anioug other*: 

( 1 ) to pay off the fnli amount due in advanee and obtain 
a partial rdbate ol the finance charge; 

(2) lo r«»deem the propesrty if re|K>«««Med fof a defauh; 

(3) to re<|uire, under certain conditionit, a resale of the 
. property if r^pQnnGini 

B»t* . 

^ASHING r( )N MPAN Y OF MARYIAND. IftC. S«Il«r. 

The Undemigned Bq^nbt Acknow|^d^et |teecipt 
of a Copy of the Aborm Ajrreeiiunt 
Signed hyrtteSiir^ 

»«i-t - „ _ „ ^ , . _, . ..'tmrm 

IJNTtt THE BLYER irNDEB AN FVST UJfENT SALES 
AGRI t WENT RECJEIVES A CDPV OF TIfE AfiREEMEIST 
StVrSEU RY IHE SELLER, THE iiLYEK IL\S AJS IN<<»N. 
I>mON41 RlGin T<» < ANCEl nU AGREEMENT AM) 

REI EI\E \ KEM Nf) OF A! ? "' ' *^" ^ ' M \I>E «»\ a< 
a>r NT TflFHEOF. yy / 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3555 

Exhibit No. 34 




-j2JSS^ 



CV^f^?''^^^^ i^^ ' J • 






3556 IMPROPER ACTIVITIES IN THE LABOR FIELD 

ExHiiiiT No. 35 



-. *^ 



tj 



A- 



I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3557 

Exhibit No. 37 



DEPENDABLf 




ruK 



FAST SERVICE 



3558 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 39 



ERIC G JANSSON 



••iUa :■. -tUe oriP r- .-.f ■»• r ! -i- 
■ . .nlH V -,11, .. -. 

' .H.> .. f 'jrnt froffl / i-ir 
f Oi , o». 1 ru 



.. .-.I. a., i.»n.:.-» 



I '1 ■. ■ 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3559 



'.t>m Int*rnhliofi*l a^cutlTf 3o«ra 
l'ntl«<t i'ltll* «oro>r» of 'wrte* 
fiK .hlrt«"fntr. r- f t, ''. -. 
'«i»h'. rx^'t on. 




'rire loc«l inloa» '^^ • -'^,b'^.«-' iwn. t.v.ft for thr pn-crmiti^; qTk<rt«r 
I* fv n 'or thf- •fc5»» '-i>*rt«r •• jm..r u^o •■> ffi.ovM: 



.''i/va 
'Vina 









1 <i ■ 




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,C r 


. 5 

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.lSK.b--< . ' 


' 1 ' • 


-1':'". ;; 'y-^ 



.(ont o: -wy . ,.o»' rruMjnt boiv. *■ In th<t >-Boant f .'<t . I ' .00 

'.;. • -Itjf v.n , ..nu <. ii^ ^.o-int "<•• turiwc ov»' r tr th« ^t^Mrt/ 
r n r ,tl;>n. '.« of wunr ' tr. t.'ir .-1 :>«rl/ x.-tln/u.i J«»n» huu not rncaiv- 
r •. ^ . r' ury ♦•,» rtat at . na ,x*n.',lrv{ r»c«l^t of V\l* ••t'.Xaimnt, tm 

•r, .'.liuHon .4. ,(>•,. / .ijlcn »«,• i r«ult»<j to yoir «.<•• ouut. I t>ji 
!t.i**«-nt W4.» rvc»-lv«k. on Ju-y } .>jv, th. iotn <•<> t..ar«u^on t><»l j off. 
. ■ - ' o' '-l. c <,'; !v-.. r>»^n In n f«rr«ci to tiiw >;it7 -J* ru ~na 






K'-fl In \iv.'i<'t -•• in. rr 1a^-i- • » It r-'-rlS^v. norftn- 



'Tt 1. r^n..«)r. .ntl n--;- Jr lh< -v.-!* of c.-«'. r*r«lpi« ..no 
i"t r-'";'-'-? It- ;•» -irh ».« •h" f^i f»i.\'vr: 

■.-(^iin*.. -If fror .oc- * union* 

.--••n- -la r , .,• .-,c»- >»: lor. i unl ->n« 

•1 t> .li.-aint 

fc-if': T< ry trul.v. 



.. • ». ► ■ .s 

■r',i:l«.,i i ubllr -<;coi«t«-nt 



3560 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 43 



■■I^^Hp" 


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IMPROPER ACTIVITIES IN THE LABOR FIELD 3561 

Exhibit No. 44 



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3562 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 45 

Deposited with 
Washington, !).('. 

In m*kln( avpoittt th« dapiMtUir MrMt wtth Tb* Wttkintton {>o«n >nd 
Tniit ('<wt>»nr of W«»hlB»U«. I) <' . ihu H*mt r»r«l»»<l 'or (>rf»^»it or 
«>l!»»-||o«i »r« wTvpUd oci th» foikiwlng ttrai t»d rwidtttont TM* Bank 
•I'M onir *i dirptnilor « n>ii«rtlnf afcnt aad (••uni*« rx' r««|>on<tliUUy 

b*>oo<l U» n»rfitt »t d»« ftr* All lUwn tr* rr»<llt»<» tutojwt to Oncl 
paymrnt and io rcrvlol of pn>r»*<}t a{ llAai iMTnottt In rtth or (ol»«nt 
rrfdlin b!r thi» lUnk a! It« own oltlc* Th!» B»nt m»» f»rw»rd iscm* i<> 
f«rrf«{xmi»*nH »r»d thill wd l»e H»t>l» for defatilt or ri4>|ill«n*r» srf rorr» 



»pirn<l»nti »l»cl«.) with duf r«T» 
forr*»t>ontf«»il »h»ll r^oi b« lut.l» » 
tnd th»lr t>r«-»»d« may I* Hindlni 
rur<i»no» »tth •i)p!lr»*>U K> (i-r*! Rr' 
rorrn!><>riiS»iit 'i- «i-. ■ ,' ;« ■. »!!>: 
(ifiili... ..r M- . 



iir fof lotMi tfl 

to! for 



• » 



• n.J 



<rn n*iligrrK'r 



Ken 



TO THE ClEDIxflaf^OSit TO TfftoCll'|!|oOf 

Name aW4Mt W« ^JOMW 

AnrnuNT 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 3563 

Exhibit No. 47 



DNITED TEXTILE WOBKEBS of AME8IGA 



AFFIIIATED WIT' 
Sit I3TI STSEET, H. W. 



THE AMERICAN T E V ' 



, A II O B 
I i D C 



V!CE.?R£SU3Eimi 



mosTixa 

fllT DBOiJiN 
XtES EMERSON 

NOR M!aj.m 



3564 IMPROPER ACTIVITIES IN THE LABOR FIELD 






she HresiA:e;U anu jirrrcUir 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3565 



rncn.ijc rs anO U'adcrs a^a 

...uxi-.,'. ...- I. i vt ribuiion ui • s r»ii><ia ..», ,,i . < • 

.■IikI- the ni-v. [-niTniier-i rnu'lir \,>- Iranslt 



Board rnet-tin)», the Frt s:(!cnl .; 

of the purchase dI real cstati- 
cxtilo Aorkt-Th. The iiivesliya tn.ii 
in whole or in part l.v the L' IW as 



ol a lari;i- •,;:.•■ . i A UA 

Executive Bo,, <=■,/, .-it w 



the Exetutivi cl the $''i,OuO fiepomt whith 

hat! i.ieen plai ■ .,-,,.■.,',, ,, - ^■. mde rlaknif; 

of the tratisi. :riornent the 

pub^ibiiitv L.- ■ i;„Js ;,n s.i. h 
an amount. 



.S!»8S0 ()_57— pt. !) 23 



3566 IMPROPER ACTIVITIES IN THE LABOR FIELD 



;t :i>io, ijo;i pi.: 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3567 



Albo .n Mav, i^=^3. At 
si,. ran; f- -n.; .< ;i- -■ ji ■ ; h ' ' •■ '' ■ : ■ 



prone rtv is ;' 



known as 9^0! i - i 
Apr;!, ■.'■>'!. • : . 



i < . 

niOiUh, U>-i>.; KK-,.< 
ance with thr C'liv ''• 



it lias bci-n I- 
ptirt on pii'ihi rio( iifT-p'-. 



3568 



IMPROPER ACTIVITIES IN THE LABOR FIELD 




We recommend that this report be adopted by the International 
Executive Board and that a copy be sent to the sub-cominiltee headed 
by President George Meany, with an expression of thanks for the in- 
terest of the officials of the American Federation of Labor in the wel- 
fare of the United Textile Workers of Airierica. 



Rt 



cctfuUy submitted. 



COMMITTEE REPRESENTING 
INTERNATiONAL EXECUTIVE BOARD 
UNITED TEXTILE WORKERS OF AMERICA 



' . . ^-^"^^f^' 



./ \>L.J>, 




IMPROPER ACTIVITIES IN THE LABOR FIELD 3569 

Exhibit No. 48 




American Feoeiution or Labor 




February 19, 1953 



Mr. Anthony Valent*, President 
United Textile Workers ol" Amertc« 
tit 13th Street, N.W. 
Waehlnpton 5, D»C. 

Dear Sir and Brotheri 

This is to inform you that the Executive Council_of the Aaerican 
Federation oi Labor, at its meeting Zn Hi ami Beach, Florida, on 
Monday, February y, 19ij3 co"hsiqer#a tig diacuas ed the report sub- 
mitted by the Comwittee RepreSentinf the In'^«FRationai Executive 
Council of the united Textile Workers of A»erica. This report dis- 
closed thfl results of that commltl ^f'a ip yaatlration into certain 
matters brought to the attention of the Executive Board of the 
United Textile Workers by a sub-coawlttee of the Executive Council 
of the AWerican Federation of Labor on September 2h, ■■952. This 
rep>ort waa enclosed in a letter a ddreaaed to ae by the Comnlttee 
Repreaentin^r IntemationaT'Executive Poard United Textile Workers 
of Awerica under Jate of January 26, 1953 and signed by Burton 
Ky»an, Philip Salem, Joseph Jacob, Francis Schaufenbil, Roy B. 
Oroenert. In this letter, it is stated that the report was accepted 
by unanlnous vote of the Executive Board cf the United Textile Workers, 

Pleaae be advised that the Executive Council of the Aaerlcan Federa- 
tion of Labor decided to file this report as part of the official 
records of the ARerlcan FederatiQPjsf^ljibor. In doine so, the Cotincil 
asked ne to bring to your tVtejtior tha followij^i 

Ihe report fails to disclose why an adiri. ttedly false financial stata- 
«eni. was subnitted to the A«eriqan f^«d»ration of~Labor by the Presi- 
aent and Secretary- Treasurer of the United Textile Workers in support 
ol an appeal for financial assistance, either froM the Anerican Federa- 
tion of Labor direct, or through the American Federation of Labor froa 



3570 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Anttiony Valente -2- Febni*r>- 1^ . 1^53 



Its affiliated orvaniBationa, In •dditioft, the report, wnile siatinr 
generally "that the funds of the orFsniisation have been used lor t'e 
advancement of the orEsniiation and the pronotion of its irt-crest" 
fails to state if an investigation had been spt-cii iraily directed to 



the ascertainment cTuTe cijrcyMStaiicea aurroundirj' the exfienciiture ii 
certain larre S'oras ol moneyj which expenditures had l«en 9fii'c Li ic»j- Ly 
called t« U'.tr attention ci • 'ivf r^oard and Trustter. m tr.e 

United fextiif Acrkers at ■ ' ncc of September 2u, iv*.; . 

Kratemally yourt, 



President /' 

Ainerican Federation of Labor 



I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3571 

Exhibit No. 50 A 

J^ATIONAL TRUCK RENTAL CO^ INC 

HiAOQu*«ti«i • «16 OKi«fflA Ktwrn. N. W. • Wawwotok J, D. C • NO«™ 7-77CX3 

June 13, 19 ?7 



The Unite! States Jeruite 
.■.■;is;a.i;(7t-jr., D, C, 

Attention: 'iLXt -lob^i-t ?. Keruicdy, Chief Couiiael 

Select Ca.-r±t,t-e on Lrciropor Activities i;; tiie Labor or Manaj^euent 
Field, 

Gc''.tl3--jcn: 

In ca'..pl].aiicc vri.ta your ro me 14th and in coiuinnation of our 

telephone conversation of ■ .te, rre are pl3.*oed to submit our 

■ "t 210 series, 2 or 4 door , or their 

e ■^'S and defrosters, dir-jctional signals 

Or. ail " would be , ' - ;:ionth per u;iit. 

Ciur ;-- ■■ . .. .^-, .u-—^ .- ^..^ -... --toaobilos _.. - . j-lowijig insur-ii»ce: 

5 la /3CX),000.00 Public Ll-ihility 

5, 000, 'JO Doduc'.": on 

, 'X),X in property da..ia2e itould incre ise the lease 

:■"' . i- -^T nonth. 

Undf^r .r-nt, you •• - , - , -, .-aaint^nance 

, .-asoline, ou., luor^i-it^ii, storage aru ft-asnint,. 

- -: mity '.o ' •-• of service. Please ao not hesitate 
infonaation, 

7er;' truly yours, 

lUT-CfiAL TXJCr: :".':.^ z^., ::.z. 

••'!■• .' 0, .7. nigfis 

oales liana gcr 

ASSOCIATED OOMTAMES 
YoH. TnKk RcsttI Conn. Inc.. Y«k. Pi. • Ti»ek KmoI Coafu*. he (dllMR. kM 



3572 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. SOB 



THE CORPORATION ros.nson 

CAR LEASING 
}ie SOUJH WAiASH AVfNIjf • . MO'S • DIVISION 

June 19, 1957 



Mr, Robert F. Kennedy, Chief Counsel 
United States Senate 

Select Committee on Improper Activities 
in the Labor or Management Field 
Washington, D. C. 

Dear Mr. Kennedy: 

We were ntiost pleased to receive an inquiry from such a distinguished 
group and spokesman. 

We lease Chevrolet 210, 2 or 4 door, 8-cylinder models with heater 
and defroster, or their Ford equivalent for $94. 50 per car per month 
on an 18-24 month contract. 

This rate includes fire, theft and $50.00 deductible collision protection. 
It also includes all repairs, nnaintenance, license and $300, 000/$lOO, 000/ 
$15,000 Public Liability and Property Damage Insurance. 

It does not include gasoline or oil, or state and local taxes, where 
applicable. 

The rate quoted you includes our normal maintenance reserve for cars 
leased by us to industrial firms and driven principally by salesmen. " 
It is our feeling that cars leased by you for Committee activities would 
probably run less miles, easier miles, and that the expense and general 
usage of the cars would be more closely controlled by the Committee 
than is possible with the average salesman. With this supposition in 
mind, we would be pleased to reduce our rate to your Committee fronn 
$94. 50 to $89. 50 a month. 

There is a possibility which you arc perhaps in better position to explore 
than we arc: If because of the fact that the lessee is to be ih- United 
States Senate we could get the Federal Excise Tax waived, this further 
saving would be passed on to you m the fornn of a further rate reduction. 

We have attached a set of contracts for your inspection and approval. 
We await your further word and hope to be able to serve you. 

Cordially yours. 

Car Leasing Division 

THE HERTZ CORPORATION 



Hubert Ryan 
Vice President 
HI(:sb 
^'' Enc, - 



IMPROPER ACTIVITIES IN THE LABOR FIELD 3573 

Exhibit No. 50C 



ri^E«» »-eas?! 



Capitol Driv - Ur -Self System 

50A L.AMAPK WAY 
SILVER SPRlMCi MARri_AINO 

AUTOMOBILE FLEET LEASIfMG 







3574 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 51A 

tj 2. If S7 







f 



:lot«4 7^ wiU li»i im* €hmk iiiffl t» l)»« ^ ^H 
^ $100. 00 l« ««ir«r 3 €«Jr* l«r lint moalli of Jmnwm,gY 

If S? » Cf»Miii«i R«iift4 Jot«9li P«4iio aadi Clmcr 

ymwf lr\»if f©ttr», 



laicrmalloaal S«c rotary «Tr«*«ur«r 



U(:f«ft 
2 o«ltt 
Eiielof«r« 



I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3575 



w 



Im- 



'41 



•its 



I 



/ft/ns Caf^sfH^ (j»sm. 





3576 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 51B 




160 CE^f^BAL AVEKOE, 



ATLWTA Z, CE-r 



Ja 



■h Str«>et. N. W. 
< - ; --..„:- . . D. C. 

DeAr M r. Kl«ncrt: 

Wi" have heretofore rete:v«-:i 

Vxe three cars which were deiiv-fr 

tne staff. 

[r. .iddttjon to that oip oi the old C. 

M. iar,i P K«r'u,in for which »h»»r> 



We have this day delivered to rne; 

R«yno!d«, Jacobs, and Cope, tb ! ■ • 

'.« in this month. This ■* .> 
• car. If vou will, therpfi 

a!v..>:i,-ii -.A id'.tO that wiU covrr thf , 

of Jana*ry . 

Immediately prior to the munlh of F«'V>ruar\ 
amount sufficient to cover the cars which w 
»ta({ for the month of February. 

With xind regard*, 1 am 



J J: ad 




IMPROPER ACTIVITIES IN THE LABOR FIELD 



3577 



on JiBASfA 



X 

JQ 



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H 







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3578 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 51C 




3 ^^'®iM)/o)@irdf €^i^y^ ^ 



160 CEHTRAL *VENUE, S. W. 



k--_^)~k : , J£DR jI* 



.ALN'-T -r80 



Mr. Lloyd Klenert, Secv -I r«>as . 
UfiifeW Tfxtilr Workers of America 
W. 



Drar M r. Klenert 

A» of thin time ard for she m.-nth vif frh' 
and dpiivpred to ai«..iil>,» r« o! the UTW S^N. - 

Th<'re are five new Ft rds which are < .rrr t 
CruiTiIe% , Cuur.tK, Bog^s, and Pedifjo for which the 



i» S . 00 per 



'^'^'" rf 18 cur realiv ilf'^p oper ated one car hN Hyntar, .r. . renf,«_l_uf 
$ili; o'-.e car bv Jacobs at a rental ot $i >'•'. 



A Chevruiet i« gtili being operated h\ Ri>hert«ori at a reia.H, f.) SiUU. 

This makeB a totai which wiU be due aa nf February iu) $>i7l. 

Shortly after the first of the month we will '•■.<• m a..s<;t).i- i ,; • df.i.rr 
one additional Ford which wiU be operatf 
In such pvent one of the two of the»e men %i 

mean that when the car m Ueiivered we wii. 

nf win he due for February on th*t car. It is 
!t the first but at thi» 



With Kind regards, we are 



Yours very tn 

A'' ; • 



COMPANY 




I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3579 




3580 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 51D 



r:-vJrff &(s>m ff(}h 






iNTRAl AVENttt, S. W. 



ATLANTA 3, CSEDRSIA 



WALKIT ii280 



, lOS7 




r. Llo'.d K'eriert, Sec rotary -Treasurer 
.'i-d IfxtiJe Wor<»"r» of \meru;x 



far Xhe mon' 



With «.i. 



idviBerl you 

ihlc for use 



Yiurs very trul> 



\U'! (■ LE XSIN 



i^^sttiseii 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3581 



00 

in 

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o 

Mi 

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C 



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o 
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89:{30 O — 57— i)t. !>- 



3582 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 52 A 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 



3583 



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3584 IMPROPER ACTIVITIES IN THE LABOR FIELD 

i *' Exhibit No. 52B 




I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



3585 






^ 





L^li 



3586 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 52C 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 

mmmmmmmmmmmmm 



3587 



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3588 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 52D 




IMPROPER ACTIVITIES IN THE LABOR FIELD 



3589 




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3590 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 53 












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BOSTON PUBLIC LIBRARY 



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