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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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■POSITORY >^ 

INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



HEARINGS 

BEFORE THE 

SELECT COMMITTEE 

ON IMPROPEE ACTIVITIES IN THE 

LABOR OR MANAGEMENT PIELD 

EIGHTY-FIFTH CONGRESS 

SECOND SESSION 
PURSUANT TO SENATE RESOLUTIONS 74 AND 221, 85TH CONGRESS 



JANUARY 21, 22, 23, AND 24, 1958 



PART 19 



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




INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



HEARINGS 

BEFORE THE 

SELECT COMMITTEE 

ON IMPEOPER ACTIVITIES IN THE 

LABOR OE MANAGEMENT FIELD 

EIGHTY-FIFTH CONGRESS 

SECOND SESSION 
PUKSUANT TO SENATE RESOLUTIONS 74 AND 221, 85TH CONGRESS 



JANUARY 21, 22, 23, AND 24, 1958 



PART 19 



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




UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1958 



Boston Public Library 
Supenntondent of Document 

APR 1 - 1958 



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, Jr., North Carolina BARRY QGLDWATER, Arizona 

PAT McNAMARA, Michigan CARL T. CURTIS, Nebraska 

Robert F. Kennedy, Chief Counsel 
Ruth Youno Watt, Chief Clerk 
U 



CONTENTS 



International Union of Operating Engineers (Area: Cali- 
fornia AND New York) 

Page 

Appendix __ 7839 

Testimony of — 

Adlerman, Jerome S 7820 

Batalias, Peter 7750, 7754, 7771 

Clancy, Patrick W 7534, 7556, 7568, 7570, 7574, 7584, 7605, 7746 

Cominsky, Edward J 7805, 7834 

DeKoning, John 7750, 7771 

DeKoning, William C, Jr 7822, 7835 

Doran, Ed 7679, 7688, 7693 

Garrett, Elwood L 7642, 7649, 7700 

Gordon, Joseph I 7529, 7568, 7573, 7582, 7604, 7647 

MacMillan, Lois 7598 

Mathews, Clarence F 7655 

Nagle, Garrett 7750, 7771 

Salinger, Pierre E. G 7513, 7531, 7554, 7687, 7695, 7701, 7718 

Skiira, Charles 7750, 7771, 7818, 7821 

Swanson, Victor S 7705, 7719 

Vandewark, Porter E 7611, 7748 

Van Zanten, Rev. John W 7795 

Wilkens, Louis 7750, 7771, 7802 

Wilkens, William 7754, 7771 

EXHIBITS 

1. Chart showing transaction involving a land purchase in duced Appears 

Stockton, Calif., by local No. 3, International Union of on page on page 
Operating Engineers 7513 7839 

2. Check dated February 15, 1955, payable to Raymond 

Stivers in the amount of $3,350, drawn on Operating 

Engineers Local Union, No. 3 7515 7840 

3. Check No. W59459, dated March 10, 1955, pavable to 

Stockton Abstract & Title Co. in the amount of $30,150 

drawn on Operating Engineers Local Union, No. 3 7515 7841 

4. Check No. 14406 dated March 12, 1955, payable to Ed 

Dorar) in the amount of $4,000 drawn on Stockton 

Abstract & Title Co 7515 7842 

5. Check No. 32890 dated January 3, 1956, payable to Ed 

Doran in the amount of $9,884.76 drawn on Stockton 

Abstract & Title Co 7516 7843 

6. Check No. 32889, dated January 3, 1956, payable to 

Operating Engineers, Local No. 3, in the amount of 

$8,500 and drawn on Stockton Abstract & Title Co 7517 7844 

7. Seller's escrow instructions dated December 13, 1955, on 

Stockton Abstract & Title Co. selling property of 
Ravmond and Dorine Stivers to the Schroebels and 
Fowells for $20,000 7517 7845 

8. Check No. 7199 dated July 11, 1955, payable to Operating 

Engineers, Local No. 3, in the amount of $10,858 drawn 

on Stockton Abstract & Title Co 7518 7846 

9. Check No. 7198 dated July 11, 1955, payable to Ed Doran 

in the amount of $12,071 and drawn on Stockton Ab- 
stract & Title Co 7518 7847 

10. Seller's escrow instructions dated July 8, 1955, showing 
Raymond and Dorine Stivers turned land over to 
Parker Bielke and wife for $24,800 7518 7848 



IV coNTEosrrs 

11. Deed, dated February 9, 1956, deeding property over to duced Appears 

Mr. Swanson and Mr. Doran, signed by Mr. Clancy and on page on page 
Mr. Mathews of local No. 3 7520 7849 

12. Check No. 33170, dated February 9, 1956", payable" to 

Operating Engineers Local No. 3, in the amount of 

$15,150, drawn on Stockton Abstract & Title Co- _ 7520 7850 

13. Check No. 87896, dated August 4, 1956, payable to Stock- 

ton Abstract & Title Co. in the amount of $35,000 drawn 

on Operating Engineers Local Union, No. 3 _ 7521 7851 

14. Check No. 34321 dated August 8, 1956, payable to V. S. 

Swanson in the amount of $17,000, drawn on the Stock- 
ton Abstract & Title Co __ 7521 7852 

14A. Check No. 34322, dated August 8, 1956, payable to Ed 
Doran and Alma Doran in the amount of $17,000 and 
drawn on Stockton Abstract & Title Co 7521 7853 

15. Letter dated May 20, 1952, to Eugene J. Riordan, director 

of property, from Pat Clancy 7522 7854 

16. Letter dated June 4, 1952, to Pat Clancy from Eugene J. 

Riordan, director of property 7522 7855 

17. Cashier's check No. 5575, dated July 13, 1955, payable 

to Pat Clancy in the amount of $800 7546 7856 

18. Ledger sheets account of Stolte, Inc., for the years 1946, 

1947, and 1949 7555 (*) 

19. Union records showing check No. 24455 made out to cash 

for Stolte, Inc 7556 (*) 

20. Warrant No. W24455, dated July 30, 1947, payable to 

cash in the amount of $10,000 for Stolte, Inc., Oakland 

Building, authorized by Pat Clancy, president 7557 7857 

21. List of expenses for the boat purchased by local No. 3 for 

the vears 1950, 1951, 1952, 1953, 1954, 1955, and 1956. 7569 (*) 

22. Check'No. 325, dated July 6, 1956, payable to Pat Clancy 

in the amount of $2,000 drawn on Operating Engineers 

Local Union, No. 3 7581 7858 

22A. Check No. 326, dated July 6, 1956, payable to Pat Clancy 
in the amount of $2,000 drawn on Operating Engineers 
Local Union, No. 3 7581 7859 

23. Original minutes of the executive board meeting, July 3,\ 7^09 /7860- 

1956 of local No. 3 ^ I ^^^^ 17861 

24. Altered minutes of the executive board meeting, July 3,\ ycoo /7862- 

1956, of local No. 3 . / '^^"^ I 7863 

25. Cashier's check No. 7081 dated March 23, 1956, payable 

to Pat Clancy in the amount of $400 7592 7864 

26. Expense account dated January 1955 in the amount of 

$2,237 and signed by Pat Clancy 7596 7865 

27. Original minutes of executive board meeting of local unioni ynr^^ /7866- 

No. 3, March 14, 1956 I '^"^ I 7867 

28. Altered minutes of executive board meeting of local union! ^^^09 /7868- 

No. 3, March 14, 1956 J '^^^ \ 7870 

29. Original minutes of executive board meeting of local union 

No. 3, February 18, 1953 7603 (*) 

30. Altered minutes of the executive board meeting of local 

union No. 3, February 18, 1952 7603 (*) 

31. Original minutes of the executive board meeting of local 

union No. 3, July 14, 1954 7603 (*) 

32. Altered minutes of the executive board meeting of local 

union No. 3, July 14, 1954 7004 (*) 

33. Original minutes of the executive board meeting of local 

union No. 3, July 20, 1955 7604 (*) 

34. Altered minutes of the executive board meeting of local 

union No. 3, July 20, 1955, 7604 (*) 

35. Original minutes of the executive board meeting of local 

union No. 3, July 18, 1956 7604 (*) 

36. Altered minutes of the executive board meeting of local 

union No. 3, July 18, 1956 7604 (*) 

37. Warrant No. W53260, undated, payable to Thunderbird 

Hotel in the amount of $2,400 on Operating Engineers 

Local Union, No. 3 7606 7871 

■•May be found in the files of the select committee. 



CONTENTS V 

38. Warrant No. W53428, dated December 23, 1953, payable duced Appears 

to Thunderbird Hotel in the amount of $303.90 on on page on page 
Operatins Ensiineers Lociil Union, No. 3 (hotel expenses) __ _ 7607 7872 

39. Check dated December 12, 1953, payable to cash in the 

amount of $2,400 on the Operating Engineers Local 

Union, No. 3 7609 7873 

40. Check No. W52605 dated November 3, 1953, payable to 

Thunderbird Hotel in the amount of $200, on Operating 

Engineers Local Union, No. 3 7610 7874 

41. Check No. W53428, dated December 23, 1953, payable to 

the Thunderbird Hotel in the amount of $303.90, on 

Operating Engineers Local Union, No. 3 7610 7875 

42. Check No. 327, dated July 6, 1956, payable to P. E. 

Vandewark in the amount of $2,000 on Operating 

Engineers Local Union, No. 3, defense fund 7615 7876 

43. Check No. 328, dated July 6, 1956, payable to P. E. 

Vandewark in the amount of $2,000 on Operating Engi- 
neers Union Local, No. 3 7615 7877 

44. Check No. 329, dated July 6, 1956, payable to P. E. 

Vandewark in the amount of $2,000 on Operating Engi- 
neers Local Union, No. 3 7615 7878 

45. Check No. 315, dated January 24, 1955, payable to cash 

in the amount of $10,000 on Operating Engineers Local, 

No. 3, endorsed by P. E. Vandewark, defense fund 7618 7879 

46. Check No. W60380, dated May 24, 1955, payable to cash 

in the amount of $1,968.40 on Operating Engineers 

Local Union, No. 3 7622 788Q 

47. Statement of expenses submitted by P. E. Vandewark for 

January, February, and April 1955 in the amount of 

$2,763 .._ 7627 7881 

48. Check No. W64672, dated March 12, 1956, payable to 

cash in the amount of $21,000 on Operating Engineers 

Local Union, No. 3 7627 7882 

49. Cashier's check No. 7008, dated March 12, 1956, payable] f77»^- 

to Ken Garff Co., in the amount of $18,459, drawn on[ 7628 < 770! 
American Trust Co ) '■ "°^ 

50. Cashier's check No. 7009, dated March 12, 1956, payable] f77St^_ 

to Ken Garff Co., in the amount of $2,477 drawn on 7628 i -tSor 
American Trust Co j '• ^'^'^ 

51. Registration certificate showing Oldsmobile in name of 

Porter E. Vandewark. 7631 7787 

52. Warrant No. W64672, dated March 12, 1956, payable to 

cash in the amount of $21,000 (for 7 cars) '_ 7635 7888 

53. Ceshier's check No. 7101, dated March 3, 1956, payable to 

P. E. Vandewark in the amount of $400 drawn on 

American Trust Co 7638 7889 

54. Letter dated August 9, 1957, addressed to P. E. Vande- 

wark, secretary, board of trustees. Operating Engineers 
trust fund, signed by assistant vice president of the New 
York Life Insurance Co., re brokerage fees 7639 7890 

55. Letter dated August 7, 1956, addressed to Tellers, Election 

of General Officers, International Union of Operating 

Engineers, from C. F. Mathews, recording secretary 7647 (**) 

56. Tallv sheet of local No. 3, election- of general officers, Julyl 7^40 /7891- 

1956, San Francisco, Calif, (sheet No. 1) . / ^^^^ \ 7892 

66A. Tallv sheet of local No. 3, election of general officers, July 

1956 San Francisco, Calif, (sheet No. 2) 7648 7893 

57. Check No. W37848, dated November 7, 1950, payable to 

cash in the amount of $2,500 on Operating Engineers 
Local Union, No. 3 endorsed by W. M. Kyne (general 
organizing) 7649 7894 

58. Check and warrant No. W34776, dated February 23, 1950, 

payable to Tanforan, Ltd., in the amount of $200 on"! ygro f7895- 
Operating Engineers Union, Local No. 3 / I 7896 

59. Check and warrant No. W41561, dated August 29, 1951,] f7897- 

payable to cash in the amount of $200 on Operating? 7653 i yggg 

Engineers Union, Local No. 3 J 

••May be found In the printed record. 



VI CJONTENTre 

60. Check No. W24455 dated July 30, 1947, payable to cash duced Appears 

in the amount of $10,000, on Operating Engineers Local on page ou page 
Union, No. 3 (Stolte, Inc, Oakland building) 7668 7899 

61. Letter dated September 18, 1947, addressed to C. F. 

Mathews, recording secretary, local union No. 3 from 
Wm. E. Maloney, general president. International Union 
of Operating Engineers 7669 7900 

62. Letter dated September 24, 1947, addressed to William E. 

Maloney, general president. International Operating 
Engineers and signed by C. F. Mathews, recording secre- 
tary, local union No. 3 7669 (**) 

63. Expense account submitted to the trustees of local union) f7Qni 

No. 3, dated January 28, 1955, by C. F. Mathews J 7675 ^70/10 

64. Cashier's check No. 5576, dated July 13, 1955, payable to *• ' -^^^ 

Ed. Doran in the amount of $3,950 drawn on American 

TrustCo 7686 7903 

65. Purchase order on American Trust Co. for a cashier's check 

No. 5575, dated July 13, 1955, payable to Pat Clancy in 

the amount of $800 7687 7904 

65A. Purchase order on American Trust Co. for a cashier's check 
No. 5576, dated July 13, 1955, payable to Ed. Doran in 
the amount of $3,950 7687 7905 

656.*^ Purchase order on American Trust Co. for a cashier's check 
No. 5577, dated July 13, 1955, payable to V. S. Swanson 
in the amount of $5, 721 7687 7906 

66. Cashier's check No. 5577 on American Trust Co. dated July 

13, 1955, payable to V. S. Swanson in the amount of 

$5,721 7687 7907 

67. Check No. 304 dated October 16, 1952, payable to cash in 

the amount of $2,000, on Operating Engineers Union, 

Local No. 3 (defense fund) 7700 7908 

68. Check No. 305 dated October 16, 1952, payable to cash in 

the amount of $2,000 on Operating Engineers Union, 

Local No. 3 (defense fund) 7700 7909 

69. Check No. 307 dated March 5, 1953, payable to cash in the 

amount to $5,000, Operating Engineers Union, Local No. 

3 (defense fund) 7700 7910 

70. Check No. 313 dated August 6, 1954, payable to cash in the 

amount of $5,000, Operating Engineers Union, Local No. 

3 (defense fund) 7700 7911 

71. Option dated November 15, 1956, to the executive board 

of local union No. 3 and signed by Victor S. Swanson. _ 7720 7912 

72. Cashier's check No. 7103 dated March 23, 1956, payable 

to V. S. Swanson, in the amount of $4,650 drawn on 

American Trust Co 7723 7913 

73. Check No. 321 dated March 25, 1956, payable to American 

Trust Co. in the amount of $10,000 drawn on Operating 

Engineers Local Union No. 3 (defense fund) 7724 7914 

74. Check No. W53321 dated December 16, 1953, payable to 

cash in the amount of $300 on Operating Engineers 

Local Union No. 3 7726 7915 

75A. Cashier's check No. 7120, dated March 27, 1956, payable] (7916- 

to V. S. Swanson in the amount of $500 drawn on[ 7747 < 7017 

American Trust Co J '' 

75B. Cashier's check dated March 27, 1956, payable to V. S.] ^ (7918- 

Swanson, in the amount of $500 drawn on Americans 7747 { ^q^q 

TrustCo I ^ ^^^^ 

76. Cashier's check No. 7122 dated March 27, 1956, payable] f7920- 

to v. S. Swanson, in the amount of $500 drawn on> 7749 \ 7091 

American Trust Co J "• 

Proceedings of — 

January 21, 1958 7511 

January 22, 1958 7567 

January 23, 1958 7655 

January 24, 1958 7745 

**May be found In the printed record. 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



TUESDAY, JANUABY 21, 1958 

United States Senate, 
Select Commii-tee on Improper Activities 

IN THE Labor or Management Field, 

Washington^ D. C. 

The select committee convened at 2 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 com- 
mittee) presiding. 

Present : Senator John L. McClellan, Democrat, Arkansas ; Senator 
Irving Ives, Eepublican, New York ; Senator John F. Kennedy, Demo- 
crat, Massachusetts ; Senator Sam J. Ervin, Jr., Democrat, North Caro- 
lina; Senator Pat McNamara, Democrat, Michigan; Senator Barry 
Goldwater, Republican, Arizona ; Senator Karl E. Mundt, Republican, 
South Dakota ; Senator Carl T. Curtis, Republican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel ; Jerome S. Adler- 
man, chief assistant counsel; Pierre E. G. Salinger, investigator; 
Joseph I. Gordon, a GAO investigator on loan to the committee ; Ruth 
Young Watt, chief clerk. 

The Chairman. The committee will come to order, 

(Members of the select committee present at the convening of the 
session: Senators McClellan, Ives, Mundt, Goldwater, and Curtis.) 

The Chairman. The Chair will make a brief opening statement 
regarding this series of public hearings. 

The Senate Select Committee on Improper Activities in the Labor 
or Management Field, today begins the first series of public hearings 
of this new year — a probe into the activities of the International 
Union of Operating Engineers, its international president, William E. 
Maloney, and a number of locals of that union. 

The iUOE now numbers some 270,000 members in the United States 
and Canada, and the work performed by these members is of strategic 
importance to the general economy and welfare of our Nation. 

For example, the backbone of the current $40 billion Federal road- 
building program will be work performed by crane operators, bull- 
dozer operators, earth-mover drivers, compressor and drill operators, 
all of whom are members of the Operating Engineers Union. The 
machinery under the control of the Operating Engineers Union is a 
vital requirement in the construction of bridges, tunnels, oil wells, 
pipelines, factories, airports, and in every other major building project 
in this country. 

The importance of the International Union of Operating Engi- 
neers also is emphasized by its relationship with its membership. 

7511 



7512 IMPROPER ACnVITIES IN THE LABOR FIELD 

The Operating Engineers is one of those unions which has all the 
characteristics of an exclusive club. In other words, it is imperative 
for a member to maintain membership in order to keep a job. 

In the wrong hands, this power that such an arrangement provides, 
can afford a method of retaliatory action against union members who 
step out of line by the simple expedient of depriving them of their 
union membership. Since this is a highly specialized occupation, this 
action deprives the member of his livelihood. 

The early history of tliis union has been punctuated by violence and 
a close association between some of its top officers and members of the 
Chicago and New York mobs. One of the international's early presi- 
dents, Arthur Huddell, died of pneumonia 10 days after being shot 
near the heart while dining in a Washington, D. C, restaurant. A 
number of other gangland killings in Chicago can be directly traced 
to the fight for control of this vital segment of American workers. 

The current hearings will be aimed at developing information in a 
number of areas. Among them are : 

(1) The illegal conversion of union funds to the financial ad- 
vancement of certain top officers of the union ; 

(2) Hearings last year by the Permanent Subcommittee on 
Investigations which acted as a prelude to the establishment of 
this committee showed that the Internal Revenue Department 
had not made audits of tax-exempt organizations, such as labor 
unions. This hearing will attempt to show the consequence of 
such a lack of check on a multimillion dollar organization; 

(3) Dictatorial control over the activities of the members of 
the union and illegal methods by which the members were de- 
prived of their right to choose their own leaders ; 

(4) The relationship between top union officials and em- 
ployers; and 

( 5 ) The abuse of pension funds set up by the international for 
its officers. 

We believe the story of the Operating Engineers Union is replete 
with dictatorial control and subjugation of the membership. The 
testimony will show that 2 Chicago locals of the union have been 
under trusteeship for almost 30 years, and all efforts by the members 
to take over the locals and run their own affairs have been stifled and 
rebuffed — much of the time by the officers who held appointive posts 
under the trusteeships. 

In recent years a "reform movement" was started in the union by 
the then sixth international vice president, Victor S. Swanson. 
Swanson came extremely close to capturing the union at the 1956 
international convention. Following this convention, Maloney, pres- 
ident of the international, sent in auditors and fired Swanson for 
alleged improper financial activities. 

This hearing will show the method by which the head of this "re- 
form movement" ran the affairs of his own local — No. 3 in San Fran- 
cisco, Calif., which boasts 24,000 members, the largest single local of 
any union in the United States. 

The testimony of these hearings will speak for itself, but it cannot 
be stressed too greatly that an honest administration of the affairs of 
this union is vital to the national interest. 

Are there any comments by any members of the committee? 

All right, Mr. Kennedy, call the first witness. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7513 

Mr. Kennedy. Mr. Chairman, the first matter that we will take up 
is the local out in San Francisco, which you mentioned in your state- 
ment, and the first witness will be a member of the staff, Mr. Pierre 
Salinger. 

The CHAiRMAisr. Mr. Salinger, will you come around, please ? 

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

Mr. Salinger. I do. 

TESTIMONY OF PIERRE SALINGER 

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

Mr. Salinger. My name is Pierre Salinger, and I reside at 3611 O 
Street NW., Washington, D. C, and I am a staff investigator for this 
committee. 

The Chairman. Mr. Salinger, you may be repeatedly called to the 
witness stand during this particular series of hearings, and you will 
remain under this oath that has just been administered whenever you 
answer any questions that may be asked of you by any member of the 
committee or counsel, regarding the subject-matters of this inquiry. 

(At this point. Senators Kennedy, McNamara, and Ervin entered 
the hearing room.) 

Mr. Kennedy. Mr. Salinger, you and various accountants under 
your direction have been making a study and investigation of this 
local out in San Francisco ; have you not? 

Mr. Salinger. We have ; yes, sir. 

Mr. Kennedy. Now, there are some 10 or 12 transactions, Mr. 
Chairman, that we expect to go into in connection with this local in 
San Francisco. The first transaction that we expect to hear testi- 
mony about is one involving a land purchase in Stockton, Calif. 

Mr. Salinger, you have some of the details in connection with that 
land purchase ? 

Mr. Salinger. I have, sir. 

Mr. Kennedy. Now, Mr. Chairman, it is a reasonably complicated 
land transaction and we have made up a chart. Mr. Salinger will go 
through the land transaction and we will have the chart here for 
explanatory purposes. 

The Chairman. This chart may be made exhibit No. 1, and placed 
in the record. 

Mr. Salinger, was this chart made up imder your supervision ? 

Mr. Salinger. It was, sir. 

The Chairman. All right, you are familiar with it ? 

Mr. Salinger. I am, sir. 

(The document referred to was marked "Exhibit No. 1" for refer- 
ence and will be found in the appendix on p. 7839.) 

Mr. Kennedy. Now, there was a piece of land down in Stockton, 
Calif., that the union became interested in purchasing; is that right? 

Mr. Salinger. That is correct. 

Mr. Kennedy. And that piece of land encompassed section 1, sec- 
tion 2, and section 3 ? 

Mr. Salinger. It encompassed all of those three sections. 



7514 IMPROPEK ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. That appear on that chart ; is that right ? 

Mr. Salinger. Yes, sir. 

The Chairman. To keep the record straight, when you refer to 
section, that does not mean a section of land as we speak of a section. 

Mr. Salinger. We might refer to it as packages 1, 2, and 3 and it is 
not a section of land. 

The Chairman. Neither of them is an entire section of land. 

Mr. Salinger. That is correct. 

The Chairman. I think it would be well to refer to them as parcels. 

Mr. Salinger. Parcels, all right. 

Mr. Kennedy. Now, in March of 1955, the union acquired this 
parcel of land ; is that right ? 

Mr. Salinger. They did, sir. 

Mr. Kennedy. Did they get approval, and did that go through 
the executive board of the local or did they get approval from the 
membership to acquire that parcel of land ? 

Mr. Salinger. Back in 1953, the local had authorized the purchase 
of various plots of land throughout the State of Cahfornia for the 
construction of various buildings that they were contemplating put- 
ting up, so that blanket authorization actually covered this Stockton 
land deal, since they were originally planning to put a building up on 
this property. 

Mr. Kennedy. The purchasing of the land was to erect an office 
building? 

Mr. Salinger. That is correct. 

Mr. Kennedy. For the local ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. Now, this local, according to the statement of the 
chairman, is the biggest local of any union in the country. 

Mr. Salinger. That is what we understand. 

Mr. Kennedy. And it covers some 3 or 4 States in the western 
part of the country ? 

Mr. Salinger. It covers all of northern California, all of northern 
Nevada, the State of Utah, and the Hawaiian Islands. 

Mr. Kennedy. They were planning to erect certain offices through- 
out this district ; is that right ? 

Mr. Salinger. Yes, sir ; most of it in northern California. 

Mr. Kennedy. And one of them was down in Stockton, Calif., and 
that is the reason they purchased this property ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. What was the purchase price? What did they pay 
for this property ? 

Mr. Salinger. Now, the union paid $33,500 for the entire parcel of 
land which includes parcels 1, 2, and 3. 

The Chairman. In other words, it bought a tract of land out of 
which you, for purposes of identification and to keep the record 
straight as to what happened, have divided into three parts. 

Mr. Salinger. That is right ; yes, sir. 

Mr. Kennedy. The initial deposit on that was made on February 
15, 1955, is that right? 

Mr. Salinger. Yes, a check payable to Raymond Stivers, who was 
acting as real estate agent for the Carl Ross Post of the American 
Legion, was drawn in the amount of $3,350 on February 15, 1955. 

Mr. Kennedy. $3,350, that was the initial deposit? 



IMPROPER ACTIVITIES EST THE LABOR FIELD 7515 

Mr. Salinger. Yes, on the land. 

Mr. Kennedy. That was made on February 15, 1955 ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. Now, the final payment was made on March 10, 
1955, is that correct ? 

Mr. Salinger. On March 10, 1955, the union wrote a check to the 
Stockton Abstract & Title Co., which was holding the land in escrow 
for $30,150, making a total price of $33,500. 

The Chairman. You have photostatic copies of those, sir ? 

Mr. Salinger. Yes, sir. 

The Chairman. The first check for $3,350 will be made exhibit 
No. 2, and the next check, for $30,150 will be made exhibit No. 3. 

(The documents referred to were marked "Exhibits Nos. 2 and 
3" for reference and will be found in the apj)endix on pp. 7840-7841.) 

Mr. Kennedy. Altogether, the union paid $33,500 for this piece 
of property ? 

Mr. Salinger, That is correct. 

Mr. Kennedy. Actually, how much did the property cost ? 

Mr. Salinger. Actually, the property cost $28,500. 

Mr. Kennedy. And where did the difference of $4,000 go ? 

Mr. Salinger. A check for $4,000 was drawn out of the escrow by 
the Stockton Abstract & Title Co., payable to the order of Ed Doran. 

Mr. I{j:nnedy. Who was Ed Doran at that time ? 

Mr. Salinger. He was business agent of the Stockton branch of 
Local 3 of the Operating Engineers Union. 

Mr. Kennedy. So the union used $33,500 of its funds to purchase 
this piece of property and the property actually cost $29,500 ? 

Mr. Salinger. $28,500. 

Mr. Kennedy. And the $4,000 left went to Mr. Ed Doran the busi- 
ness agent of the local, is that right ? 

Mr. Salinger. There was also a commission payment for $1,000 
which makes a total of $33,500. 

The Chairman. You have the total cost to the union as $33,500? 

Mr. Salinger. That is correct. 

The Chairman. $28,500 went to actually purchase the property, plus 
$1,000 commission ? 

Mr. Salinger. That is correct. 

The Chairman. Which would be legitimate, I assume. 

Mr. Salinger. Yes, sir. 

The Chairman. That leaves thfen $4,000 to account for some other 
purpose. 

Mr. Salinger. That is correct. 

The Chairman. Where did it go ? 

Mr. Salinger. The difference of $4,000 was drawn as a check to the 
account of Ed Doran, the business agent of the union in Stockton, 
Calif. 

The Chairman. It went to Ed Doran. Do you have a photostatic 
copy of that check ? 

Mr. Salinger. Yes, sir. 

The Chairman. It 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. 7842.) 

Mr. Salinger. To conceal the actual price of this tract of land, a 
dummy was employed and the land was actually sold to the dummy 



7516 IMPROPER ACTIVITIES IN THE LABOR FIELD 

and transferred the same day to the union, so that they could conceal 
the true price of the land. 

The Chairman. In other words, they paid out the $28,500, the true 
price of the land, and had it deeded to a dummy and then made the 
other payment to the dummy so as to get the other $4,000 ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy, The American Legion got the $28,500 ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. And then they deeded the property to Stivers and 
Stivers then sold the property of the American Legion for the $33,500 
and turned over $4,000 of this to Mr. Doran ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. Now, we have the parcel of property split into three 
sections. 

The Operating Engineers then proceeded to sell parcel No. 1, did 
they not ? 

Mr. Salinger. They did. 

Senator Mundt. Before we leave the $4,000, did you trace the $4,000 
check Mr. Doran received, to determine who ultimately got the money 
or did he keep it all or did he split it up with some of his conferees ? 

Mr. Kennedy. We expect to develop what happened to some of these 
moneys with other witnesses, and we want to find out their explana- 
tion. If we could wait until that time and have these other witnesses 
explain as to what they did with the money, I think we could do it 
better. We have the witnesses here and that is the way we expect to 
develop it. 

You have parcel No. 1. 

Mr. Salinger. On the chart parcel No. 1 is in green. That was 
sold by the union for $8,500, whereas the true price of the land was 
$20,000. Again, the same dummy was used, the land was sold by the 
union to the dummy who turned around and sold it on the same day 
to the eventual owners, and the union received a check for $8,500 and 
out of the escrow, a check was drawn in favor of Ed Doran in the 
amount of $9,884.76. 

Mr. Kennedy. Now, that check to Ed Doran was cashed by him on 
January 15, 1956, at the American Trust Co. 

Mr. Salinger. The check bears his endorsement and it shows it was 
cashed on January 15, 1956. 

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

(The document referred to was 'marked "Exhibit No. 5" for refer- 
ence and will be found in the appendix on p. 7843.) 

Senator Curtis. May I ask, who are the ultimate purchasers of 
parcel No. 1. 

Mr. Salinger. The ultimate purchasers of parcel No. 1 Senator, 
I will tell you in a minute. They are two couples described as Orval 
and Betty Schroebel, and Donald and Mary Fowell. 

I understand those to be doctors who were intending to build a hos- 
pital on this land. 

Senator Curtis. Approximately how much time elapsed from the 
purchase of the entire tract by the union until parcel No. 1 was sold? 

Mr. Salinger. On this parcel, there was a lapse of time from March 
11, 1955, to December 14, 1955. 

Senator Curtis. All within the same calendar year ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7517 

Mr. Salinder. Yes, sir, the same calendar year. 

Mr. Kennedy. This property was sold originally to the Stivers? 

Mr. Salinger. It went through the Stivers as the dummy. 

Mr. Kennedy. Raymond and Dorine were the Stivers? 

Mr. Salinger. Right. 

Mr. Kennedy. The union sold it for $8,500, the Stivers sold it to 
the Schroebels and Fowell, for that? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. And the difference went in this check to Mr. Ed 
Doran ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. That is for parcel No. 1. 

The Chairman. What does that show, the kickback or the profits 
out of that ? 

Mr. Salinger. I will tell you exactly. 

Mr. Kennedy. $9,874.76. 

Mr. Salinger. That is right. 

Mr. Kennedy. Do you have the documents on that ? 

Mr. Salinger. They have not all been made exhibits. We have the 
check to local No. 3 of the Operating Engineers Union, in the amount 
of $8,500. 

The Chairman. That will be made exhibit 6. 

(The document referred to was marked "Exhibit No. 6" for ref- 
erence and will be found in the appendix on p. 7844.) 

Mr. Salinger. And the escrow instructions selling the property from 
Raymond and Dorine Stivers to the Schroebels and Fo wells for $20,000. 

The Chairman. The escrow agreement ; is it ? 

Mr. Salinger. That is right, sir. 

The Chairman. Do you have a photostatic copy of that ? 

Mr. Salinger. I have, sir. 

The Chairman. This will be made exhibit No. 7. 

(The document referred to was marked "Exhibit No. 7" for refer- 
ence and will be found in the apendix on p. 7845.) 

Mr. Salinger. Parcel No. 2 was again sold through the same dum- 
mies. The total price 

Mr. Kennedy. Would you get the date on that ? 

Mr. Salinger. The date on that is July 11, 1955. Actually it was 
sold before parcel 1, but we have them in this order. It was sold on 
July 11, 1955, to the same dummies, Raymond and Dorine Stivers, 
who turned around and sold it to a man by the name of Parker Bielke. 

Mr. Kennedy. On the same day ? 

Mr. Salinger. The same day. The true price of the property was 
$24,900, but the Operating Engineers Union only received $10,858. 
Out of this escrow, a check was drawn to the favor of Ed Doran in 
the amount of $12,071. 

Mr. Kennedy. In other words, the union sold the property to the 
Stivers for $10,858. 

Mr. Salinger. Correct, sir. 

Mr. Kennedy. On the same day, the Stivers sold the same property 
to Bielke for $24,900? 

Mr. Salinger. Right, sir. 

Mr. Kennedy. And the difference, after cost, of $12,071, was made 
out in a check to Mr. Ed Doran ; is that right ? 

Mr. Salinger. That is correct, sir. 



7518 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Do you have all the documents on that ? 

Mr. Salinger. I would like to mention in connection with this check 
that it bears two endorsements. It bears the endorsement of Ed Doran, 
and the subsequent endorsement of Victor S. Swanson, and shows to 
have been cashed at the American Trust Co. in San Francisco, Calif., 
2 days after it was drawn. 

Mr. Kjinnedy. Who is Mr. Victor S. Swanson ? 

Mr. Salinger. At that time, Mr. Victor S. Swanson was the sixth 
international vice president of the Operating Engineers Union and he 
was the business manager of the San Francisco Local Union No. 3. 

Mr. Kennedy. Does he have any position with the union at the pres- 
ent time ? 

Mr. Salinger. He does not. 

Mr. Kennedy. Would you explain that to the committee ? 

Mr. Salinger. Well, in the summer of 1957, accountants from the 
imion were sent in to check on the books of local No. 3, and as a result 
of that check, a trial was held in Washington and Mr. Swanson was 
suspended from his union job. 

Mr. Kennedy. At that time did they go into the Stockton land 
transaction ? 

Mr. Salinger. They did, but only to a lesser extent. In other words, 
they only carried the transaction so far. 

Mr. Kennedy. They were not able to get the complete facts? 

Mr. Salinger. They were not able to get the complete facts on it. 
I have the documents here. One is the check to the Operating Engi- 
neers Union for $10,858. 

The CiiAiRaiAN. That check may be made — what is the date of it? 

Mr. Salinger. July 11, 1955. 

The Chairman. It may be made exhibit No. 8. 

( The document referred to was marked "Exhibit No. 8" for reference 
and will be found in the appendix on p. 7846. ) 

Mr. Salinger. The check to Ed Doran for $12,071, the same date, 
July 11, 1955. 

The Chairman. That will be made exhibit No. 9. 

(The document referred to was marked "Exhibit No. 9" for reference 
and will be found in the appendix on p. 7847.) 

Mr. Salinger. And the escrow instructions which showed that Ray- 
mond and Dorine Stivers turned the land over to Parker Bielke and 
his wife for $24,800. 

The Chairman. That escrow agreement will be made exhibit No. 10. 

(The document referred to was marked "Exhibit No. 10" for 
reference and will be found in the appendix on p. 7848.) 

Mr. Salinger. Parcel No. 3 was sold on February 8, 1958, by Operat- 
ing Engineers Union Local No. 3, to Mr. Ed Doran and Mr. Victor 
Swanson for a total of $15,150. 

Mr. Kennedy. Mr. Salinger, going back to the first two parcels, 
they were sold for considerably more money than what the union 
had originally paid for this piece of property ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. What is the explanation for that ? 

Mr. Salinger. The explanation for that is that after the union had 
acquired the property, measures were started to get this particular 
piece of property incorporated into the city of Stockton and have 
sewers put in. This eventually was accomplished on October 28, 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7519 

1955. So the land became more valuable by the very fact that it had 
been incorporated in the city of Stockton, and that sewers were being 
put in at the cost of the city. 

Mr. Kennedy. That is why they were able to get a greater price? 

Mr. Salinger. That is correct. 

The Chairman. Was it March when they bought the whole tract 
from the Legion ? 

Mr. Salinger. Yes, sir ; March 1955. 

The Chairman. In March of of 1955 this improvement project and 
incorporating the tract of land within the city limits had not been 
accomplished ? 

Mr. Salinger. That is right, sir. 

The Chairman. And that was accomplished when ? 

Mr. Salinger. It was started in July. It was completed in October. 

The Chairman. Of the same year ? 

Mr. Salinger. That is right, sir. 

The Chairman. When it was completed, the property, of course, 
became more valuable ? 

Mr. Salinger. Yes, sir. Also it might be noted here that the origi- 
nal request to have this land incorporated into the city of Stockton 
was made by the attorney for the Operating Engineers Union in 
Stockton, Calif. 

The Chairman. In other words, the Operating Engineers, through 
its attorney, had initiated the effort to get it incorporated and im- 
proved ? 

Mr. Salinger. That is correct, sir. 

The Chairman. All right. 

Mr. Kennedy. This third parcel of land, the union sold to Mr. Vic- 
tor S. Swanson and Mr. Ed Doran for $15,150, is that right? 

Mr. Salinger. That is correct, sir. 

Mr, Kennedy. How did that compare to the other two parcels of 
land as far as value was concerned ? 

Mr. Salinger. Well, the tliird parcel, of course, by this time was 
much more valuable than the other two parcels. However, the price 
that they paid for it was based on a front footage, dollars-per-front- 
footage basis, of exactly what the miion had paid for it back in March 
of 1955. 

Mr. Kennedy. So they did not take into account the increased value 
of the land? 

Mr. Salinger. They did not, in any way. 

Mr. Kennedy. And Mr. Swanson and Mr. Doran were only made 
to pay the $15,000? 

Mr. Salinger. That is right, sir. 

I might point out that the deed, which deeded tliis particular 
property over to Mr. Swanson and Mr. Ed Doran, was signed by two 
officers of local No. 3 of the Operating Engineers Union, Mr. Clancy 
and Mr. Mathews. 

Mr. Kennedy. What are tlieir full names ? 

Mr. Salinger. Pat Clancy. 

Mr. Kennedy. What was his position ? 

Mr. Salinger, President of the ],ocal. 

Mr. Kennedy. What is his position at the present time? 



7520 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Salinger. President of the local. And Mr. Clarence F. Ma-^ 
thews, who was and still is the recording secretary of the union. 

The Chairman. That photostatic copy of the deed may be made- 
exhibit No. 11. 

(The document referred to was marked "Exhibit No. 11" for refer- 
ence and will be found in the appendix on p. 7849.) 

Senator Curtis. To whom is the deed made ? 

Mr. Salinger. From the Operating Engineers Local No. 3, to V. S. 
Swanson and Ed Doran. 

Senator Cltrtis. How long did they hold that before they sold it 
back to the union ? 

Mr. Salinger. They didn't hold it very long. They held it a lit- 
tle less than 6 months. 

Senator Curtis. Was it less than 6 months or more than 6 months? 

Mr. Salinger. It was less than 6 months. 

Senator Curtis. Who got the most money out of this whole tract of 
land, the original owners, the American Legion, or the union leaders? 

Mr. Salinger. The union leaders by far got more than anybody else. 

Mr. Kennedy. Could you explain what happened on that ? 

Mr. Salinger. Do you want to put in the check from the Stockton 
Abstract & Title to the Operating Engineers for the purchase of this ? 

The Chairman. That check may be made exhibit No. 12. 

(The document referred to was marked "Exhibit No. 12" for refer- 
ence and will be found in the appendix on p. 7850.) 

Mr. Salinger. I would like to point out that this sale was on Feb- 
ruary 9, 1956. On August 8, 1956, the land was sold by Ed Doran 
and Victor Swanson to the same dummies, Raymond and Dorine 
Stivers, who that same day turned around and sold the land to the 
union for $35,000. 

The Chairman. They had paid $15,150 for it ? 

Mr. Salinger. They had paid $15,150 for it. 

The Chairman. And they sold it for what ? 

Mr. Salinger. $35,000. 

The Chairman. Back to the union? 

Mr. Salinger. Yes. 

The Chairman. That was within less than 6 months after the origi- 
nal transaction ? 

Mr. Salinger. One day less than 6 months. 

Mr. Kennedy. Do you have some information that indicates that 
they thought they kept it for the 6-month period, and therefore could 
take a long-term gain on it ? 

Mr. Salinger. We have information to that effect, yes, sir. 

Mr. Kennedy. But actually the records show that they kept it for 
1 day less than 6 months ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. So if they took a long-term capital gain on their 
income tax, they took it incorrectly ; is that right ? 

Mr. Salinger. That is correct, sir. 

I have here the check in the amount of $35,000 from the Operating 
Engineers Union, Local No. 3, to the Stockton Abstract & Title Co. 

The Chairman. When is that date^ ? 

Mr. Salinger. It is dated August 4, 1956. 

The Chairman. That check may be made exhibit No. 13. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7521 

(The document referred to was marked "Exhibit No. 13" for refer- 
ence and will be found in the appendix on p. 7851. ) 

Mr. Salinger. And I have two checks dated August 8, 1956, which 
are payments out of the escrow, one to Victor S. Swanson, the other 
to Ed Doran and Alma Doran, both in the amount of $17,000. 

The Chairman. Those checks, the two of them, may be made ex- 
hibit 14. 

(The documents referred to were marked "Exhibit No. 14 and 
14A" for reference and will be found in the appendix on pp. 7852- 
7853.) 

Mr. Kennedy. Going one step further, were you able to trace down 
what Mr. Victor S. Swanson did with his $17,000 ? 

Mr. Salinger. We were, sir. 

Mr. Kennedy. What did he do with his $17,000 ? 

Mr. Salinger. Mr. Victor S. Swanson took his check for $17,000 
to the Mission Savings branch of the American Trust Co. in San 
Francisco, Calif., where he converted it into two cashier's checks. One 
of the cashier's checks in the amount of $11,318.06 was payable to 
Operating Engineers Union, Local No. 3, and went for the purchase of 
some previously held water department land — in other words, land 
which had previously been held by the city of Stockton and county 
of San Francisco Water Department. 

The land was actually in San Bruno, Calif. 

Mr. Kennedy. The Operating Engineers had purchased some prop- 
erty from the water department of the city of San Francisco? 

Mr. Salinger. Could I give you a little history on this particular 
plot of land? 

Mr. Kennedy. Yes. 

Mr. Salinger. This particular plot of land, which is adjacent to a 
railroad right-of-way in San Bruno, Calif., was owned by the San 
Francisco Water Department. At a meeting of the San Francisco 
Public Utilities Commission on April 28, 1952, this land was declared 
surplus and put up for sale. It should be pointed out that at this 
time Mr. Victor S. Swanson was a member of the San Francisco 
Public Utilities Commission, and he shows to have been present at the 
meeting on that day, and therefore took part in the action which de- 
clared this land surplus. 

The Chairman. In other words, as an official of the city, in an 
official act, he took part in the proceedings necessary to declare this 
tract of land surplus and also to put, it up for sale ? 

Mr. Salinger. That is correct. 

This is followed by a letter which was received by the director of 
property of the city of San Francisco, Eugene J. Reardon, on May 20,^ 
1952, about 3 weeks later. The letter is signed by Pat Clancy, 25T 
Desmond Street, San Francisco, Calif. Mr. Clancy was the president 
of local No. 3 of the Operating Engineers Union. He states : 

Approximately 3 weeks ago I submitted an offer on some city-owned real estate 
at San Bruno, which consists of 14.6 acres. I would appreciate your advising 
me of the time and place of the sale of said real estate. 

The Chairman. That letter is dated when ? 

Mr. Salinger. He says 3 weeks previously he made an offer. 

The Chairman. When was the order made by the commission? 

Mr. Salinger. April 28. 

The Chairman. April 28? 

21243— 58— pt 19 2 



7522 IMPROPER AcnvrriES nsr the labor field 

Mr. Salinger. Yes. 

The Chairman. And that is dated what ? 

Mr. Salinger. May 20. 

The Chairman. And he said some 3 weeks ago he had submitted 
an offer ? 

Mr. Salinger. I would say it would probably be either the day they 
made the order or the following day, just going back 3 weeks. How- 
ever, the director of property did not recall getting an offer from Mr. 
Clancy in this matter. In fact, he wrote him a letter to that effect. 
But on the original letter that Mr. Clancy wrote, he made tliis 
notation — 

The Chairman. Wlio? 

Mr. Salinger. They are referring to a man named Mr. McDonald, 
an official of the PUC : 

Mac of PUC says Mr. Clancy probably made offer to Commissioner Swanson. 
PUC has adopted resolution — 

and so forth. 

The Chairman. The first letter from Mr. Clancy to Mr. Eugene J. 
Reardon, dated May 20, 1952, may be made exhibit 15, and the next 
letter to Mr. Clancy from Mr. Eugene J. Reardon, dated June 4, 1952, 
may be made exhibit 16. 

( The documents referred to were marked respectively "Exhibits No. 
15 and No. 16" for reference and will be found in the appendix on 
pp. 7854-7855.) 

Mr. Salinger. The record will show that it took some 3 years for 
the city finally to get around and sell this property. When they did, 
a tract in that particular section amounting to some 3 acres was pur- 
chased by the Operating Engineers Union, Local No. 3, the purchase 
was made on February 5, 1955. 

I might point out that under section 222 of the San Francisco city 
charter, Commissioner Swanson was barred by law from actually 
purchasing this land himself. The union held it from February 5, 
1955, until October 15, 1956. 

(At this point Senator Ives left the hearing room.) 

The Chairman, At the time that he acted as commissioner with 
respect to the disposal of this property — Mr. Swanson I am speaking 
of — what position did he hold with the operating engineers? 

Mr. Salinger. He was business manager of the operating enijineers. 

The Chairman. Of that local ? 

Mr. Salinger. Yes, sir. 

The Chairman. He was acting in a dual capacity? 

Mr. Salinger. That is correct. 

The Chairman. On behalf of the city as an official of the city to 
sell the property and as business manager on behalf of the union to 
purchase the property. 

Mr. Salinger, That is correct, sir. 

The union, as I say, purchased the land on February 5, 1955, while 
Mr. Swanson was still a member of the Public Utilities Commission 
and on October 15, this check that I have told you about. tliat came 
out of tliis $17,000 check that he got on this Stockton land deal, and 
he had taken the $17,000 check and bought tlie two cashier's checks. 

One casliier's clieck went to the union to buy from tlie union tliis 
particular piece of land, and by then Mr. Swanson Avas no longer a 
member of the Public Utilities Commission. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7523 

The Chairman. So he had bought this particular piece of land that 
he had helped to sell and helped to buy for the union and then he buys 
that particular piece of land for $11,000 and some. 

Mr. Salinger. He paid for the land exactly what the union paid 
for it, plus the taxes that had been paid on the property. 

The Chairman. What the union had paid for it 3 years before ? 

Mr. Salinger. February 5, 1955, when they actually bought it. 

Mr. Kennedy. And does the record show that Mr. Swanson's son 
paid the taxes at least initially, while the property was owned by 
the union? 

Mr. Salinger. While the property was owned by the union, a tax 
payment of $153.72 was made by the Marshall Development Co., which 
is owned by Mr. Marshall Swanson, the son of Mr. Victor S. Swanson. 

Mr. Kennedy. Now, out of this firet transaction which led into this, 
how much did these union officials make from this sale and repurchase 
of land? 

Mr. Salinger. They made a total of $59,955.76. 

Mr. Kennedy. What did the union end up with ? 

Mr. Salinger. The union ended up with one-third of the land that 
they had originally purchased by paying $1,650 more than the original 
sale price. 

Mr. Kennedy. They ended up with a third of the land, minus $1,600, 
and the union officials wound up with over $59,000. 

Mr. Salinger. That is correct. 

Mr. Kennedy. I believe that is all. 

The Chairman. Are there any questions by any member of the com- 
mittee ? 

Senator Curtis. Wlio are these people that acted as dummies in 
this transaction ? 

Mr. Salinger. Our investigation tells us that they are the next- 
door neighbors of Mr. Ed Doran. 

Senator Curtis. Was it a husband and wife ? 

Mr. Salinger. They are, sir. 

Senator Curtis. Where does the husband work ? 

Mr. Salinger. He is a real-estate man in Stockton. 

Senator Curtis. And what title company handled these transac- 
tions ? 

Mr. Salinger. The Stockton Abstract & Title Co. 

Senator Curtis. And this man who took title to the land, is he con- 
nected with the title company ? 

Mr. Salinger. No, sir ; he is not. 

Senator Curtis. Now, in investigating this, did you find any evi- 
dence of any audits or checking into this transaction by any higher 
authority in the union ? 

Mr. Salinger. Up to the time of the audit made last year which led 
to the charges against Mr. Swanson, no, sir. 

Senator Curtis. Is this an independent union ? 

Mr. Salinger. It is a local of this international union, the Inter- 
national Union of Operating Engineers. 

Senator Curtis. The International Union of Operating Engineers ; 
is that an independent union ? 

Mr. Salinger. No, sir ; it is a member of the AFL-CIO. 

Senator Curtis. That is all. 



7524 IMPROPER ACTIVmES EST THE LABOR FIELD 

Senator Mundt. Was it on the basis of these transactions that Mr. 
Swanson lost his job with the local ? 

Mr. Salinger. It was on the basis of the parts of these transactions 
which the international became aware of that he lost his job; yes, sir. 

Senator Mundt. Dealing with the same real-estate transactions? 

Mr. Salinger. Yes, sir. 

Senator Mundt. They may not have known all of the facts, but they 
knew enough of the facts to indicate their activity and discharged 
them? 

Mr. Salinger. Yes, sir. 

Senator Mundt. But the international union took no step in that, 
as I understand it, until Mr. Swanson tried to replace the president 
of the international union. 

Mr. Salinger. That is correct. 

Senator Mundt. So that it would be indicated that this was a 
movement not so much to clean up the union as it was spite work 
against Mr. Swanson. 

Mr. Salinger. It may be, sir. 

Senator Kennedy. Well now, the Stockton Abstract & Title Co.,. 
were they aware of the details of this arrangement? 

Mr. Salinger. I don't see how they could have helped but be 
aware of it. 

Senator Kennedy. I think on the seller's escrow instructions of 
the Stockton Abstract & Title Co. there was the payment listed of 
$24,900 and the Operating Engineers were getting $i0,858 and your 
check for the balance to Ed Doran, didn't they know he worked for 
the union ? 

Mr. Salinger. I am sure they did. 

Senator Kennedy. Then, is it your opinion that the Stockton 
Abstract & Title Co. obviously behaves itself improperly? 

Mr. Salinger. I can't see how they would have oeen unaware of 
what was going on. 

Senator Kennedy. It seems that way to me. What about the 
Stivers, did they not serve as the intermediate, or the dummy ? 

Mr. Salinger. They did in all cases. 

Senator Kennedy. Whom did they work for? 

Mr. Salinger. He works for a real estate company called Peirano 
Bros. 

Senator Kennedy. Well now, the Peirano Bros., were they not 
aware of the details, too ? 

Mr. Salinger. That I cannot answer, sir. 

Mr. Kennedy. Was Mr. Stivers as their agent aware of it? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. And he was the next-door neighbor of Ed Doran f 

Mr. Salinger. That is right. 

Mr. Kennedy. Ed Doran was the business agent? 

Mr. Salinger. That is right. 

Mr. Kennedy. Of the local ? 

Mr. Salinger. Yes, sir. 

Mr, Kennedy. And Mr. Stivers as the representative of Peirano 
Bros, participated in Mr. Doran receiving this money? 

Mr. Salinger. That is right, and not only that but the Peirano^ 
Bros, got checks out of a number of these transactions. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7525 

Senator Kennedy. How many people did the Peirano Bros, have 
working for them? 

Mr. Salinger. I can't answer that. 

Senator Kj:nnedt. Were they not aware of what one of their men 
was doing ? 

Mr. Salinger. I think it is quite likely. 

Mr. Kennedy. In my discussion with Mr. Stivers on the telephone 
yesterday he said that he informed the Peirano Bros., his superiors, 
as to what was taking place. As far as the Stockton Abstract & 
Title Co., according to all of their documents, Mr. Ed Doran was 
handling this transaction for the union, was he not ? 

Mr. Salinger. That is correct and all of the documents and the 
escrow of the Stockton Abstract & Title Co. are signed by the vice 
president and general manager of the company, Mr. Pleronimus. 

Mr. Kennedy. They participated or they knew he was representing 
the union, but nevertheless, they participated in his receiving these 
sums of money. 

Mr. Salinger. That is correct and all of the checks were paid by 
the abstract company to Mr. Ed Doran. 

Senator Mundt. Is there any evidence to indicate that Mr. Stivers 
was getting a kickback or was he just engaged in a good-neighbor 
act? 

Mr. Salinger. Mr. Stivers in some of these transactions got checks 
out of the escrow for commissions. Beyond that, I couldn't say. 

Senator Mundt. He got a commission ? 

Mr. Salinger. That is right, sir. 

Senator Mundt. And the Peirano Bros, also got a commission ? 

Mr. Salinger. That is correct, sir. 

Senator Mundt. So that if he were an employee of the firm, his 
commission must have been for this neighborly act of letting them use 
his name as a dummy, rather than a real-estate transaction. 

Mr. Salinger. I would think so, Senator. 

Senator Goldwater. Might I ask a question here. In your opinion, 
was the title company engaged in anything illegal in handling these 
transactions ? 

Mr. Salinger. Well now. Senator, I am not an expert on real-estate 
law. I would say that certainly it was improper activity on the part 
of the title company. 

Senator Goldwater. Well, what could they have done, in your 
opinion ? 

Mr. Salinger. Well, I think the problem lies in the fact that they 
knew that this dummy was being used and the land was being bought 
and sold on the same day. 

Senator Goldwater. Wliat would they have done — refused to en- 
gage in the transaction ? 

Mr. Salinger. They would have to answer for themselves. 

Senator Goldwater. I think it is important that we get that cleared 
up because in my memory this is not an unusual thing to go through in 
the purchasing and selling of real estate. If you are leaving the 
inference that this title company, and I know nothing about the title 
company, acted illegally I think that we ought to clear that up. If 
there is some way that they could prevent this transaction I think that 
it would be additional testimony for you to tell us how they might 
have done it. 



7526 IMPROPER ACTIVITIES IN" THE LABOR FIELD 

Mr. Salinger. The representative of the title company has been 
asked to be here today, and maybe he can explain it better than I can. 

Senator Kennedy. I personally think there is not any doubt that the 
Stockton Abstract & Title Co., while the union officials who were 
involved here are completely culpable, I do not think that there is any 
doubt that the Stockton Abstract & Tile Co. is, also. 

They were a part of this deal and there is not any doubt, looking over 
this exhibit, that they were aware that the money was ^oing to Ed 
Doran and that, therefore, they had a complete responsibility, too, and 
so does the real-estate company. 

Senator Goldwater. Will the Senator explain that ? He is a lawyer 
and I am not. 

Senator Kennedy. I am not a lawyer. I am just giving you my 
opinion. I do not see quite why the union man should be the only one 
considered responsible and not the Stockton Abstract & Title Co. 

Senator Goldwater. I could not agree with you more if what they 
have done is illegal, but this kind of a transaction is not an unusual 
kind of a transaction. I am at a loss to know where their responsi- 
bility rests in this. Should they have, for instance, refused to engage 
in it? 

Senator Kennedy. I think obviously they should have because it 
was quite obvious that a dummy was oeing used and the Operating 
Engineers were fmding that they were getting $10,858 and Mr. Doran 
was an officer of the engineers and he was getting $12,000. 

I think that the deal was improper, and I think you agree that Mr. 
Doran's activities were improper. I think that the Stockton Abstract 
& Title Co. must have known what was going on and, therefore, I 
think what they did was improper. 

Senator Goldwater. If they are going to be on the stand I think 
it is important to question them on that. That is not an unusual 
real -estate transaction. 

Senator Curtis. Was there anything, Mr. Salinger, in your investi- 
gation to indicate that the title company enriched themselves out of 
this in any way beyond the usual title company charges? 

Mr. Salinger. There is not. Senator. 

Senator Curtis. Nothing? 

Mr. Salinger. No. 

Senator Curtis. They did not share in this property but the union 
officials did, is that not correct ? 

Mr. Salinger. That is correct, sir. 

Senator Curtis. And also it is the practice for the title company to 
execute the conveyances and distribute the money according to the 
contract entered into by the parties that come before them, is that 
not correct ? 

Mr. Salinger. Well, as I told Senator Goldwater, Senator, I am not 
an expert on real-estate law and I went in to find out what these 
transactions were, and what had been done with the money. As far 
as what is usually done about abstract companies, I couldn't say. 

Senator Curtis. That is all. 

Senator Mundt. Did the title company know that Mr. Doran was 
the head of the union ? 

Mr. Salinger. Beyond any reasonable doubt they knew he was con- 
nected with tlie union. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7527 

Senator Mundt. On what do you base that assumption ? You say, 
"beyond any reasonable doubt." 

Mr. Salinger. Well, I think that will be developed by another 
witness. 

Mr. Kennedy. They told me, for one thing. 

Senator Mundt. They told you that they knew he was ? 

Mr. Salinger. Yes, sir. 

Senator Mundt. At the time ? 

Mr. Salinger. Yes, sir. 

Senator Mundt. A union official ? 

Mr. Salinger. Yes, sir. 

Senator Mundt. So that they knew as a union official he was receiv- 
ing a check as part of this transaction ? 

Mr. Salinger. Mr. Doran is not a stranger in Stockton. He is a 
well-known figure in Stockton. 

Senator Mundt. How big a city is Stockton ? 

Mr. Salinger. I would say about 80,000. 

Senator Mundt. Well, I think with a city of that size they might 
not know what occupation he was in. Of course, if they told the chief 
counsel they knew it, they must have known it. But I would not ex- 
pect an abstract company in a city of 80,000 to know the business and 
occupation and means of livelihood of all of the people in a com- 
munity of that size. 

Senator Kjennedy. Just to get this, Mr. Salinger, was it your im- 
pression from your investigation that they knew Mr. Doran before 
he came ? 

Mr. Salinger. Yes, sir ; there had been previous real-estate trans- 
actions in which they dealt with him. 

Senator Kennedy. And it is your opinion that he knew what his 
position was ? 

Mr. Salinger. Yes, sir. 

Senator Kennedy. Now, let me ask you if the Stockton Abstract & 
Title Co. made any money out of this deal in any way ? 

Mr. Salinger, That I can't say. 

Senator Kennedy. Did they receive a fee ? 

Mr. Salinger. Beyond their fees, I don't know. 

Senator Kennedy. They received a fee ? 

Mr. Salinger. Yes, sir. 

Senator I^nnedy. In other words, then, they profited to the extent 
of the fee from this transaction, which was highly improper? 

Mr. Salinger. That is correct. 

Senator Kennedy. That is why I would say again that they should 
have refused to perform the action that they performed and by doing 
so they became a part of the deal. 

Senator Mundt. Do you have in the record the size of the fee ? 

Mr. Salinger. I think we can work it out for you, sir, and I do not 
have it right at my fingertips. 

Senator Mundt. It does not show on the face of the document any 
place? 

Mr. Salinger. Well, it talks about the normal title fees but it does 
not elicit exactly the amount, and we would have to take the checks 
and go back and figure out what had been deducted for title searches 
and so forth. 



7528 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. It would be interesting to supply it for the record. 

Mr. Salinger. Yes, sir. 

Senator Goldwater. Is that not a fee that is set by law ? 

Mr. Salinger. Again, I can't answer that question. 

Senator Goldwater. I think that you will find it is set by the Cali- 
fornia law. Do you know what the function of the title company is in 
this instance ? 

Mr. Salinger. In this instance? 

Senator Goldwater. In any instance of land transaction, what are 
they supposed to do ? 

Mr. Salinger. Again, in this particular instance, they acted as the 
holder of the money and they made the title search and checked the 
taxes and that there were no encumbrances on the property and they 
did the normal things to find out whether the property could be sold 
from one party to the other. 

Senator Goldwater. I think that you have covered it. 

Senator McNamara. Was there a broker involved in this transac- 
tion, involving parcel No. 1 ? 

Mr. Salinger. Parcel No. 1 ? 

Senator McNamara. Yes. 

Mr. Salinger. Mr. Stivers acted as the agent. 

Senator McNamara. I assumed tliat it requires a licensed broker to 
handle a deal like this. Am I wrong in such an assumption ? 

Mr. Salinger. Out of escrow there were two checks paid, one to 
a real-estate man in Stockton, Fran Capple, and another to Peirano 
Bros. 

Senator McNamara. You do not know whether he was a licensed 
broker ? 

Mr. Salinger. I don't know. 

Senator McNamara. Do you know whether or not Doran had a 
broker's license? That is what you call him, the business agent? 

Mr. Salinger. I do not know whether Doran had a broker's license 
or not, sir. 

Senator McNamara. I, of course, am not an attorney and you are 
not an attorney, and we have some very able attorneys here. I just 
assumed that it requires a licensed broker to handle the transactions 
of this nature. Now maybe that is not so. 

Mr. Salinger. I am confident that Peirano Bros, is a licensed 
broker. 

Senator McNamara. Wliat was their role in the thing? 

Mr. Salinger, They received commissions. The deals were handled 
by their agent, Mr. Stivers. 

Senator McNamara. You assume that they were the licensed real- 
estate broker? 

Mr. Salinger. I think that I recall Mr. Stivers telling us that. 

Senator McNamara. Did your search indicate whether or not the 
union in fact ever held title to this property until they had paid what 
you believed to be an exorbitant price for part No. 3 ? 

Mr. Salinger. They held title to it ; yes, sir. 

Senator McNamara. Who held title to it? 

Mr. Salinger. The union held title to it, sir. 

Senator McNamara. When you say "the union" do you mean any- 
body besides Doran ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7529 

Mr. Salinger. No ; it was held, the title was held in the name of 
the Operating Engineers, Local No. 3 of the International Union of 
Operation Engineers, a corporation. 

Senator McNamara. You have evidence that they physically had 
title to the property? 

Mr. Salinger. Well here is the deed, sir. 

Senator McNamara. I think the deed so indicates it was transacted, 
in their name, but whether the union board of directors of this local 
union ever had control of the title of this property 

Mr. Salinger. I believe in interviews with officials of the union,, 
they told me that they had the deed. 

Senator McNamara. You have reason to believe that they actually 
did hold title? 

Mr. Salinger. Yes, sir. 

Senator McNamara. Do you know whether this original purchase, 
where the $3,350 was paid, was an act that was approved by the rank 
and file of the local union? 

Mr. Salinger. The initial purchase of the land for $33,500 was 
made under authority of a resolution adopted in 1953 which called 
for the purchase of various lots throughout California to build build- 
ings, so they had authority for the purchase. 

There is, however, nothing in the minutes which authorizes them 
to cut it up and sell it. 

Senator McNamara. They did have authority to go and purchase 
in a blanket manner, to purchase property in a general area? 

Mr. Salinger. They did not specify any particular town, but they 
said that they would need lots in various areas where they had mem- 
bers to build buildings and to serve these members. 

Senator McNamara. That is very interesting. I think it would 
be interesting to develop somewhere along here, who actually was the 
licensed broker involved in these transactions. 

This man Doran that you mentioned apparently whether he was 
licensed or not, was handling the transactions firsthand more than 
almost anybody else and he was the prime mover; was he not? 

Mr. Salinger. He was certainly participating in the transactions. 

Senator Mundt. If you will yield, the assistant to the man on the 
stand says that the Peirano Bros, were the licensed brokers. 

Senator McNamara. I would be glad to ask through the witness 
if he can get that information. 

Mr. Salinger. If Mr. Gordon says they were, they were. 

Senator McNamara. What did .he say? 

Mr. Salinger. He said the Peirano Bros, were the licensed brokers 
in this transaction. 

The Chairman. Will you be sworn, please ? 

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

Mr. Gordon. I do. 

TESTIMONY OF JOSEPH I. GORDON 

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



7530 IMPROPER ACTivrriES rN- the labor field 

Mr. GoRDOisr. My name is Joseph I. Gordon, and I live at 8027 Gary 
Boulevard, Gary, and I am an employee of the General Accounting 
Office, detailed to work for the committee. 

The Chairman. You are with the Federal Government, the Gen- 
eral Accounting Office and you made a search of these records and 
you helped conduct this investigation. 

Mr. Gordon. Yes; under the supervision of Mr. Salinger. 

The Chairman. Now, ask any questions you want. 

Senator McNamara. Did you indicate by your remarks prior to 
being sworn that the brokers were this real-estate company ? 

Mr. Gordon. Peirano Bros. ; yes, sir. 

Senator McNamara. Is a license required to legally carry on this 
kind of transaction ? 

Mr. Gordon. Yes, sir; I found that out from Mr. Stivers and other 
real-estate men. Mr. Stivers does not have a real-estate broker's license 
and he is merely a salesman. 

Senator McNamara. Then he was operating on the license held 
by the real-estate dealers ? 

Mr. Gordon. Yes, sir ; he was. 

Senator McNamara. Did they get an exorbitant fee out of this 
transaction ? 

Mr. Gordon. No; as a matter of fact, Mr. Stivers told me that he 
got less than a real-estate commission out of it. 

Senator McNamara. Was he the man who got the $1,000 in that? 

Mr. Gordon. He got $800 in one and the Peirano Bros, got $200 
of the $1,000 commission. 

Senator McNamara. Is it the customary fee for property of this 
type to be approximately 5 percent of the sale? 

Mr. Gordon, Approximately, yes, sir ; I understand that it is. 

Senator McNamara. Were these same brokers or real-estate people 
involved in all three transactions? 

Mr. Gordon. Yes; the very same ones, with the exception of one 
case. They had a man by the name of Jack Kane who was in there. 
I don't know what his relationship is to any other firm. But I do 
understand that he actually brought a purchaser of a subsequent 
piece of property, 1 of the 3 parcels. I don't remember just what 
it is, sir. 

Senator McNamara. He normally would be entitled to what is 
referred to as a tip fee, wouldn't he ? 

Mr, Gordon. Well, for a finder's fee. He did get paid I think he 
got $1,000. 

Senator McNamara. And which would be a legitimate fee, would 
it? 

Mr. Gordon. It is a fee. I have no means of actually evaluating 
whether it is a legitimate fee or a fair fee, but he did get a fee, which 
he apparently asked for. 

Senator Mundt, You and I are not lawyers, but the lawyers have 
forwarding fees, so it must be legitimate. 

Mr. Gordon. He may have gotten a finder's fee. 

Senator McNamara. I don't want to accept the inference that the 
lawyers have a license to steal. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7531 

TESTIMONY OF PIEREE E. G. SALINGER— Resumed 

Senator McNamara. I would like to ask you, Mr. Salinger, this 
fellow Doran who apparently was very busy selling real estate, did 
your investigation indicate that he did anything for the union ? "Was 
he operating as a business agent for the union ? 

Mr. Salinger. He was a business agent ; yes, sir. 

Senator McNamaka. Was he doing anything besides these real- 
estate transactions ? 

Mr. Salinger. I understand he did ; yes, sir. 

Senator McNamara. Do you know what he did for the union ? All 
we have him in the role of here is businessman.- He Avas handling 
money he had a right to handle, and as a businessman he is buying 
and selling. 

Mr. Salinger. Senator, he is going to be a witness here this after- 
noon. 

Senator McNamara. You don't have that information ? 

Mr. Salinger. No, sir. 

Senator McNamara. When the transaction was all finished on this 
1 piece of property, which has been cut up into 3 parcels, the union 
winds up owning only parcel No. 3 ? 

Mr. Salinger. Correct, sir. 

Senator McNamara. Do you have any idea of a proper evaluation 
of that piece of property, how much it is worth today ? 

Mr. Salinger. No, sir. It has probably increased in value quite a 
bit since they bought it. They have erected a $300,000 building on 
the property. 

Senator McNamara. They have erected a $300,000 building on the 
property ? 

Mr. Salinger. Yes, sir. 

Senator McNamara. Actually, how much money is the union out 
of pocket in the purchase of this one piece of property? Is that 
$1,650 the amount of money they have invested in it ? 

Mr. Salinger. No. They have $35,000 invested in it. 

Senator McNaisiara. Of which they have gotten nothing back ? 

Mr. Salinger. They originally put up $33,500. 

Senator McNamara. According to your testimony, they originally 
put up $3,350 and subsequently $33,500. 

Mr. Salinger. They put up a total of $33,500 to buy the property 
originally. When they had sold off all 3 pieces, they had gotten back 
their $33,500, plus several hundred dollars. I can tell you exactly, if 
you want to know. Then they turned around and bought a third of 
it for $35,000. So they have $35,000 tied up in plot No. 3. ^ 

Senator McNamara. After they had owned it all, within a year — 
was it within a year ? 

Mr. Salinger. Actually, it goes from March 11, 1955, to August 8, 
1956. So it is about a year and 4 months. 

Senator McNamara. Then in the 1 year and 4 months period the 
union went through the cycle of owning all of the property, all three 
parcels, and having invested in it less money than they now have in 
it, in the one piece of property, a third of the original piece? 

Mr. Salinger. That is correct, sir. 

Senator McNamara. They really went up the hill and down again, 
didn't they? 



7532 iMPROPEK ACTrvinEi& nf the labor field 

According to your statement now they have more than $35,000 
invested in the property, less some few hundred dollars they got back 
in the ramifications of the deal ? 

Mr. Salinger. That is correct, sir. 

Senator McNamara. So they are probably back somewhere near 
the $33,500 originally invested in the whole piece ? 

Mr. Salinger. I think it would be closer to that than it would be 
to $35,000. I can tell you exactly if you are interested. 

Senator McNamara. No, that is not necessary. We are talking in 
round numbers. Then by this dealing of selling and buying back, the 
union has lost two-thirds of the property that it had for about the same 
amount of money ? 

Mr. Salinger. That is correct, sir. 

Senator McNamara. The people who profited most out of it are 
the people who were acting in the name of the union, apparently with 
some authority by the membership, as you indicate, but their activities 
are still questioned because there is no evidence that they reported 
this to the local union. 

Mr. Salinger. That is correct, sir. 

Senator McNamara. Thank you. 

The Chairman. Are there any further questions ? 

Senator Ervin. Mr. Chairman ? 

The Chairman. Senator Ervin. 

Senator Ervin. Does Swanson still own the piece of property which 
formerly belonged to the water commission ? 

Mr. Salinger. Yes, sir. 

Senator Ervin. As I understand that transaction, Swanson, as 
a member of the water commission, participated in proceedings for 
the sale of that property to the union, and as an officer of the union 
he participated in the proceedings in which they purchased the prop- 
erty from the water board ? 

Mr. Salinger. That is correct. 

Senator Ervin. In other words, he was both assisting in the selling 
and buying of the same piece of property ? 

Mr. Salinger. He was a member of the public utilities commission,, 
which, under the city system controls the water department, and, 
therefore, acted both for the Government and for the union in the 
transaction. 

Senator Ervin. And was certainly violating the rule of law that 
says that no man can be an agent for two conflicting parties, who 
have conflicting interests. But it turned out later he was agent for 
himself because he later got the property for himself, for the union? 

Mr. Salinger. The union held it for approximately 18 months and 
sold it to him. 

Senator Ervin. And he purchased it for the same price that the 
union had purchased it for, plus taxes that the union paid, and the 
union lost interest on the money from the time they got it to the time 
Swanson bought it ? 

Mr. Salinger. That is correct, sir. 

Senator Ervin. So in the last transaction, he violated the law of 
trust that says no man shall purchase property from an organization 
that he is supposed to represent. 

Mr. Salinger. That is correct, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7533 

Senator Ervin. This is a right interesting set of circumstances. It 
would look like the officers of this union in one sense acted like the 
I^ord, according to the old hymn, they certainly moved in mysterious 
ways their wonders to perform. 

The Chairman. Senator Mundt? 

Senator Mundt. I think you said in answer to one of the questions 
by Senator McNamara, that on parcel No. 3, that it went back and 
was actually registered in the name of the union ? 

Mr. Salinger. Yes, sir. 

Senator Mundt. Did you say earlier that while the union held the 
property, Marshall Swanson paid the taxes ? 

Mr. Salinger. That is the water department land that that hap- 
pened on. The land that I was just talking to Senator Ervin about, 
while the union held that land, the Marshall Development Co. paid 
the taxes and was reimbursed by the union. 

Senator Mundt. What reason did you find out from the union offi- 
cials or from Swanson given for that type of transaction ? 

Mr. Salinger. Again, if I might. Senator, they are going to be 
here this afternoon, and maybe they can explain it better than I can. 

Senator Mundt. Maybe I can ask questions of them a little more 
intelligently if you will tell me what reason they gave you. 

Mr. Salinger. The reason I got was that it was done as a matter of 
convenience. 

Senator Mundt. As a matter of convenience? 

Mr. Salinger. As a matter of convenience to the union. 

Senaort Mundt. What way would be more convenient? They all 
lived there altogether. 

Mr. Salinger. How it was convenient has eluded me. 

Senator Mundt. It has also eluded me. I cannot find out. We will 
see if we can find out when we talk to them. 

(At this point Senator McNamara withdrew from the hearing.) 

The Chairman. Anything further ? 

Mr. Kennedy. One thing further. You mentioned the fact that the 
union built their office buildmg on this third parcel of land. 

Mr. Salinger. Yes, sir. 

Mr. I^nnedy. Who built the building for the union ? 

Mr. Salinger. The Marshall Development Co. 

Mr. Kennedy. Who owned the Marshall Development Co. ? 

Mr. Salinger. Marshall Swanson. 

Mr. I^nnedy. What relation is Marshall Swanson to Victor Swan- 
son ? 

Mr. Salinger. He is his son. 

Mr. Kennedy. We are going into that company a little later on. 

The Chairman. Thank you very much. Call the next witness. 

Mr. Kennedy. Mr. Pat Clancy. 

(Present: Senators McClellan, Goldwater, Ervin, Curtis, and 
Mundt.) 

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

Mr. Clancy. I do. 



7534 IMPROPER ACTIVITIES IN THE LABOR FIELD 

TESTIMONY OF PATRICK W. CLANCY 

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

Mr. Clancy. Patrick W. Clancy, 267 Desmond Street, San Fran- 
cisco. 

I am president of the Operating Engineers, local No. 3, San Fran- 
cisco, Calif. 

The Chairman. How long have you been president of the local, Mr. 
Clancy? 

Mr. Clancy. Since July 1, 1941. 

The Chairman. Did you hold an official position in that local prior 
to that time ? 

Mr. Clancy. No, sir. That local was amalgamated in 1939, between 
1939 and 1941. I didn't hold any official position. 

The Chairman. Have you held any official position in any labor 
organization prior to becoming president of this local ? 

Mr. Clancy. Financial secretary of the San Francisco Local 59 for 
1 year, a 1-year period, or a year and a half. 

The Chairman. You I assume are familiar with the rules of the 
committee. You are entitled to have counsel present while you testify^ 
if you desire, to advise you on your legal rights. 

Mr. Clancy. Yes, sir ; I am familiar Svith that. 

The Chairman. Do you waive counsel? 

Mr. Clancy. I don't need any, I don't believe, Senator. 

The Chairman. Thank you. Mr. Kennedy, you may proceed. 

Mr. Kennedy. You became president in 1941, is that right ? 

Mr. Clancy. Right. 

Mr. Kennedy. You presently hold that position ? 

Mr. Clancy. Yes. 

Mr. Kennedy. What are the assets of local No. 3 ? 

Mr. Clancy. The assets ? 

Mr. Kennedy. Yes. The total assets. 

Mr. Clancy. I believe around $3 million. 

Mr. Kennedy. About $3 million. Approximately $3 million? 

Mr. Clancy. I would say roughly. 

Mr. Kennedy. You have been elected, have you, to this position ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. You were elected in 1941 ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. Have you had opposition during this period of time ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. You have had opposition each time, have you ? 

Mr. Clancy. I couldn't say. I believe there was one, one or two — 
maybe one — term that I run for office that I didn't have opposition. It 
could have been more than that. I don't remember now. 

Mr. Kennedy. You are president. Do you run the union ? 

Mr. Clancy. I am the president of the local. 

Mr. Kennedy. Do you run the union ? 

Mr. Clancy. No. 

Mr. Kennedy. Who runs the union ? 

(At this point Senator McNamara returned to the hearing room.) 

(At this point Senator Mundt left the hearing room.) 

Mr. Clancy. Up to a certain time our business manager run it. 



IMPROPEK ACTIVmES IN THE LABOR FIELD 7535 

Mr. K!ennedy. Who was that? 

Mr. Clancy. Victor S. Swanson. 

Mr. Kennedy. He had complete control over the union ? 

Mr. Clancy. Sure. 

Mr. IvENNEDY. Is that right ? 

Mr. Clancy. Sure. 

Mr. KJENNEDY. Did you object to any of the things he was doing ? 

Mr. Clancy. No ; not to amount to anything. 

Mr. IsLennedy. Why ? 

Mr. Clancy. What good would it have done ? 

Mr. IvENNEDY. Well, your position as president, elected by the other 
members of the union, you had a responsibility to the membership, 
did you not ? 

Mr. Clancy. Yes. 

Mr. Kennedy. You will have to speak up, Mr. Clancy. 

Mr. Clancy. Yes ; I did. 

Mr. Kjinnedy. Did you object to any of the things he was doing, 
that you felt were w^rong ? 

Mr. Clancy. Well, among ourselves, I believe I have. That would 
be different, at various times. 

Mr. Ivennedy. Why didn't you object to him ? 

Mr. Clancy. What good would it have done ? 

Mr. Ivennedy. Wasn't the local run democratically, so that you 
could bring these things to the attention of the membership? 

Mr. Clancy. Yes; you could have brought it to their attention, I 
believe. 

Mr. Ivennedy. Were you afraid of Mr. Swanson ? 

Mr. Clancy. Not necessarily afraid. 

Mr. Kennedy. Then why didn't you do something about some of 
these things you objected to ? 

Mr. Clancy. Well, I don't know that it would have done any good. 

Mr. Kennedy. What do you mean it wouldn't have done any good ? 

Mr. Clancy. Well, I am only one. 

Mr. Ivennedy. Did the other officials object to what Mr. Swanson 
was doing ? 

Mr. Clancy. Occasionally a little. 

Mr. Kennedy. Couldn't you all get together and object and do 
something about it ? 

Mr. Clancy. No. 

Mr. Kennedy. You could not? 

Mr. Clancy. No. 

Mr. Kennedy. Were you all afraid of what Mr. Swanson could do ? 

Mr. Clancy. No. They were on the payroll, the same as I was. 

Mr, Kennedy. You felt you would lose your job if you objected, is 
that right? 

Mr. Clancy. Wliat would you think ? 

Mr. Kennedy. You tell me, Mr. Clancy. 

Mr. Clanncy. Yes ; I would. 

Mr. Kennedy. That was the reason you didn't object; you felt that 
you would lose your job ? 

Mr. Clancy. Well, you are all alone, and the rest of them. 

Mr. Kennedy. You all felt you would lose your jobs if you objected 
to Mr, Swanson ? 

Mr. Clancy. I presume so, yes. 



7536 IMPROPER AcnvrriES est the labor field 

Mr. Kennedy. Then that was your personal reason for not objecting? 

Mr. Clancy. One of them. 

Mr. Kennedy. You didn't want to lose the job as president of the 
local, is that right ? 

Mr. Clancy. One of them. 

Mr. Kennedy. Is that right ? 

Mr. Clancy. Yes. 

Mr. Kennedy. Wliat are the other reasons ? Or was that the only 
reason ? 

Mr. Clancy. Well, I guess that was probably the one. 

Mr. Kennedy. You wanted to make sure that you kept your job? 

Mr. Clancy. Well, I have to run for office. 

Mr. Kennedy. Is he the one that decides whether you are going to be 
elected or not ? 

Mr. Clancy. Well, when he has 45 or 50 agents working in the field, 
he probably has quite a bit to say about it. 

Mr. Kennedy. What do you mean by 45 or 50 agents ? 

Mr. Clancy. Business agents working in the field. 

Mr. Kennedy. Did he have control over those business agents? 

Mr. Clancy. Brother, he hired and fired them, so I guess he must 
have. 

Mr. Kennedy. He is the one that hired the business agents ? 

Mr. Clancy. Right. 

Mr. Kennedy. And they worked in the various sections? 

Mr. Clancy. Right. 

Mr. Kennedy. And you say that it was up to them to determine 
who was going to be elected to the various positions, is that right? Is 
that right, Mr. Clancy ? 

Mr. Clancy. I presume so. 

Mr. Kennedy. And he is the one that appointed them, and therefore 
he could control who were going to be the officials of the local, is that 
right? 

Mr. Clancy. It could be. 

Mr. Kennedy. Isn't it true ? 

Senator Curtis. Who hires and fires Mr. Swanson ? 

Mr. Clancy. The membership. 

Senator Curtis. The membership ? 

Mr. Clancy. Yes. Or they did. Let's put it that way. 

Senator Curtis. When did they first do it ? 

Mr. Clancy. 1941. 

Senator Curtis. Where was the meeting held ? 

Mr. Clancy. Wliich meeting ? I don't understand. 

Senator Curtis. At which they hired him. 

Mr. Clancy. They nominated him. He was elected. They hired 
him through an election. They elected him. 

Senator Curtis. Where was that election held? 

Mr. Clancy. It was a referendum vote sent out to the membership. 

Senator Curtis. How many voted ? 

Mr. Clancy. I don't remember, sir. That was in 1941. I don't 
remember now. 

Senator Curtis. Ninety percent, do you think, of the 24,000 mem- 
bers ? 

I couldn't tell you. 



IMPROPER ACTIVITIES EST tHE LABOR FIELD 7537 

Senator Curtis. You have no idea ? 

Mr. Clancy. Not now, no, I don't. I didn't bring any figures with 
me. 

Senator Curtis. That is all. 

Mr. ICennedt. Therefore, as I understand your explanation, Mr. 
Swanson would be the one to decide who were going to be the officers 
of the local ; is that right ? 

Mr. Clancy. He could ; yes. 

Mr. I^NNEDY. Just answer the question. 

Mr. Clancy. Yes. 

Mr. Kennedy. Was he the one who decided who were going to be 
the officers of the local ? 

Mr. Clancy. Yes. 

Mr. Ivennedy. Do you understand this is the biggest local of any 
union in the country ? 

Mr. Clancy. Of any union? 

Mr. Kennedy. Yes. 

Mr. Clancy. Of the Operating Engineers. 

Mr. ICennedy. Of any union. Do you know any local union in the 
country which is larger than your union ? 

Senator McNamara. Let me help you out, Mr. Kennedy. 

Local No. 600 of the UAW, the Ford local, is at least twice as big 
as this, and maybe much larger. So this is not the largest one in the 
country. I think our record ought to be corrected. 

Mr. Kennedy. I am trying to find out from the witness. 

Mr. Clancy. I believe the counsel means the largest local of the 
International Union of Operating Engineers. 

Mr. ICennedy. Is it the largest local of the Operating Engineers? 

Mr. Clancy. Right. 

Mr. Kennedy. Evidently, it is not the largest local in tlie country. 

Mr. Clancy. I could not answer that. I do not know the size of the 
various locals. 

Mr. Kennedy. Did you feel that if you objected to any of the sug- 
gestions or recommendations or the activities of Mr. Swanson, that 
you would lose your position as president? 

Mr. Clancy. I was also a hired business representative. 

Mr. Kennedy. Did you feel that you would lose your position as 
president, and as a hired business representative ? 

Mr. Clancy. As a hired business representative. 

Mr. Kennedy. And that he could cause you to lose the election, if 
you ran for office ? 

Mr. Clancy. If I wasn't a hired business representative in the field, 
how could I campaign and be elected ? 

Mr. Kennedy. That is fine. 

Could you answer the question? He would be the one that de- 
termined it, if you objected to what he was doing, is that right? 

Mr. Clancy. Right. . 

Mr. Kennedy. I wanted to ask you specifically about this land trans- 
action that occurred down in Stockton. 

Are you aware of the fact that the union was purchasing some land 
in Stockton ? 

Mr. Clancy. I heard about it. 

Mr. Kennedy. Excuse me ? 

21243— 58— pt. 19 3 



7538 IMPROPER ACTIVITIES IN THE LABOR FTEILD 

Mr. Clancy. Yes. 

Mr. Kennedy. And that land was purchased for $33,500 ? 

Mr. Clancy. I believe so, yes. 

Mr. Kennedy. $33,500? 

Mr. Clancy. Yes. 

Mr. KJENNEDY. Were you aware of the fact that the land actually 
only cost $28,500? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You never were aware of that ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. That was never brought to your attention ? 

Mr. Clancy. No, sir. 

I first heard of that in, I think it was June of 1957, in the city of 
Washington, D. C. 

Mr. KJENNEDY. But up until that time you were not aware of it 
yourself ? 

Mr. Clancy. I was not, sir. 

Mr. KJENNEDY. Then you did not receive any money from this $4,000 
that went to Mr. Doran ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You did not even know that he received the $4,000 ? 

Mr. Clancy. No, sir. 

Mr. KIennedy. Subsequently this land was sold at various times. 
Parcel No. 1 was sold by the union for $8,500, and there was a hidden 
profit of $9,884. Were you aware of that ? 

Mr. Clancy. No, sir. 

Mr. Kjennedy. You thought that the land, this parcel No. 1 was 
actually sold, and that all the money that the union could get for it 
was this $8,500 ; is that right ? 

Mr. Clancy. Well, I never heard anything to the contrary. Tliat 
was it. 

Mr. Kennedy. It was never discussed with you ? 

Mr. Clancy. No. 

Mr. Kennedy. It was not ? 

Mr. Clancy. No. 

Mr. Kennedy. You didn't know that this extra money was going 
to Mr. Doran ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. And none of it went to you ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. Mr. Swanson never mentioned it to you ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. On parcel No. 2, it was supposed to have been sold 
by the union for $10,858, and there was a hidden profit of some 
$12,071. Did you know anything about that ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You never heard about it ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You were never aware of the fact that there was this 
hidden profit in this transaction ? 

Mr. Clancy. No, sir. 

Mr, Kennedy. Mr. Swanson never discussed it with j^ou ? 

Mr. Clancy. No, sir. 



IMPROPER ACTIVITIES FNT THE LABOR FIELD 7539 

Mr. Kennedy. And Mr. Doran never discussed it Avitli you? 

Mr. Clancy. No, sir. 

The Chairman. When did you first find out about it ? In June of 
1957 in the city of Washington, D. C. ? 

Mr. Clancy. That is right. 

(At this point Senator Gold water left the hearing room.) 

The Chairman. That is after this investigation was started, I 
believe. 

Mr. Clancy. The international auditor for the Operating Engi- 
neers turned it up. I guess you would call it that. 

Senator Curtis. Mr. Chairman ? 

The Chairman. Senator Curtis. 

Senator Curtis. Mr. Clancy, did you sign any deeds in tlie sale 
of any of these parcels of land ? 

Mr. Clancy. To my knowledge I signed one. 

Senator Curtis. Where were you when you signed that ? 

Mr. Clancy. In the office, the secretary's office, our secretary in 
San Francisco. 

Senator Curtis. Were you present when any money was paid to 
the union for that parcel ? 

Mr. Clancy. Not that I recall, no. 

Senator Curtis. Who else was present when you signed this deed ? 

Mr. Clancy. When I signed the deed ? 

Senator Curtis. Yes. 

Mr. Clancy. The secretary would be all, I think. I couldn't say 
now. I don't remember. But I think that would be all. 

Senator Curtis. Did you know who the deed was made to ? 

Mr. Clancy. I don't believe so. I don't believe I paid too much at- 
tention to it. I don't think so. I don't believe I did. 

Senator Curtis. You had no idea that Mr. Swanson was making 
any profit out of this transaction ? 

Mr. Clancy. No, sir; none whatsoever. 

Senator Curtis. Do you know what Swanson's salary is from the 
union ? 

Mr. Clancy. For the local union I did at that time, yes. 

Senator Curtis. How much was it ? 

Mr. Clancy. Twenty percent above what we got. 

Senator Curtis. How much was that ? 

Mr. Clancy. It would run in the neighborhood of about $1,000 a 
month. I would say roughly that. 

Senator Curtis. How well acquainted were you with Mr. Swanson? 
Were you ever in his home ? 

Mr. Clancy. Years back, A^es. Not inlatej^ears. 

Senator Citrtis. Did you ever observe his spending habits ? 

Mr. Clancy. I don't just exactly get what you mean. 

Senator Curtis. Did you ever notice anything that indicated that 
he spent more money than his salary in the union amounted to? 

Mr. Clancy. No ; I don't think so. I didn't pay no attention to it, 
I wasn't traveling around with him too much. 

Senator Curtis. You thought everything was all right ? 

Mr. Clancy. As far as I knew, it was. 

Senator Curtis. That is all. 

Mr. Kennedy. Did you approve of the sale of these plots of prop- 
erty, these parcels of land ? 



7540 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Did you approve, for instance, of selling parcel No. 1 that we 
discussed ? 

Mr. Clancy. Well, yes. They would come in and say they were 
going to sell a piece of property, and "O. K., sell it.'' 

Mr. Kennedy. T^Hio told you that they would sell it ? 

Mr. Clancy. Probably Swanson, I suppose. 

Mr. Kennedy. Who did tell you ? 

Mr. Clancy. Swanson. 

Mr. Kennedy. He came in and said thev were going to sell parcel 
No. 1. Is that right? 

Mr. Clancy. Well, I don't remember exactly if he came in and said 
"I am going to sell parcel No. 1." 

Mr. Kennedy. Did you discuss with the membership about selling 
this parcel of property? 

Mr. Clancy. Not that I know of. 

Mr. Kennedy. Did you ? You were president of the local. 

Mr. Clancy. No. 

Mr. Kennedy. "Why didn't you discuss it with the membership? 

Mr. Clancy. Where would that have taken place ? 

Mr. Kennedy. Don't you have membership meetings ? 

Mr. Clancy. Yes ; once a month. We used to. 

Mr. Kennedy. Could you discuss with the membership the dispos- 
ing of land or property ? 

Mr. Clancy. If it was brought on the floor. 

Mr. Kennedy. What? 

Mr. Clancy. If it was brought on the floor. 

Mr. Kennedy. Isn't the membership supposed to know when you 
sell property which belongs to the union ? 

Mr. Clancy. That is up to the manager to notify them. I am only 
the president. 

Mr. Kennedy. You are only the president, so you felt you had no 
responsibility for telling them ? 

Mr. Clancy. Well, I didn't at that time. 

Mr. Kennedy. You didn't what ? 

Mr. Clancy. I didn't take any. That was his job. He was the 
manager. 

Mr. Kennedy. Not as president, you didn't have that responsibility 
as president of the local ? 

Mr. Clancy. No. 

Mr. I^nnedy. All right. We have the same situation in parcel 
No. 2 

The Chairman. Let me ask you this question. What is a president, 
then, in your position, just a figurehead? And you had no responsi- 
bility? 

Mr. Clancy. No, sir. The president conducted the meeting 2 hours 
a night once a month on the first Saturday of the month. That was 
his duties. 

The Chairman. He would just sit there as chairman ? 

Mr. Clancy. Right. That was his duties. 

The Chairman. He had no other duties as president ? 

Mr. Clancy. No. 

The Chairman. Nothing about looking after the finances of the 
union ? 

Mr. Clancy. No, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7541 

The Chairman. To see that the union was operated honestly, he 
had no responsibility in that connection ? 

Mr. Clancy. No. 

Senator Curtis. If you didn't have any power as president, how 
much power did the members have over the affairs of their own union? 

Mr. Clancy. Well, they had powers in the meetings. 

Senator Curtis. How many would attend ? 

Mr. Clancy. It varied. 

Senator Curtis. How many? 

Mr. Clancy. Well, from 150 up to, I would say maybe 1,000, 900, 
or 1,000. 

Senator Curtis. Did you ever have any meetings of less than 150? 

Mr. Clancy. Possibly. 

Senator Curtis. Well, did you ? 

Mr. Clancy. I don't remember. I never counted them, sir, in 
every meeting. 

Senator Curtis. But such matters as the sale of real estate were 
not brought up unless the business manager chose to bring them up ; 
is that correct ? 

Mr. Clancy. I presume so. Yes. 

Senator Curtis. And the business manager determined who would 
be officers of the union ? 

Mr. Clancy. Practically. • 

The Chairman. Let me ask you this: Did you have an executive 
committee, a board, or anything to pass upon these transactions? 

Mr. Clancy. Yes, sir. 

The Chairman. Who? 

Mr. Clancy. There were 11 members and then the board was 
raised to 13. 

The Chairman. Did they authorize the sale of this property ? 

Mr. Clancy. I don't remember, sir, whether they did or not. 

The Chairman. Wouldn't you want to know that as president be- 
fore you would sign a deed to it, if that was their responsibility? 

Mr. Clancy. Well, the manager had the power to purchase it, to 
go buy the property. 

The Chairman. Did he get authorization from the union members 
to purchase the property ? 

Mr. Clancy. I believe there was a resolution at one time back some 
time ago. 

The Chairman. That was a blanket resolution to purchase prop- 
erty in certain areas where you might want to construct a building ? 

Mr. Clancy. It gave him the power to purchase. 

The Chairman. Did it give him the power to sell it at his pleasure? 

Mr. Clancy. That I don't know, sir. 

The Chairman. Don't you know that it did not ? 

Mr. Clancy. I do not, sir. 

The Chairman. Wlien did this local become a one-jnan dominated 
operated union? It seems this man Swanson told all of you what to 
do and what not to do. When did it become such a union? 

Mr. Clancy. Probably July 1, 1941. 

The Chairman. And it has been that ever since ? 

Mr. Clancy. It looks like it. 

The Chairman. Yes, it does. 



7542 IMPROPER ACTIVITIES IN THE. LABOR FIELD 

-Senator McNamara. ]\ir. Chairman ? 

The Chairman. Senator McNamara. 

Senator McNamara. I am interested in your role as president of 
this local union, since there has been some discussion about it. 

Were you paid for being president of the local union ? 

Mr. Clancy. Let me put it this way, sir : If I wasn't on the payroll 
as a business agent, my salary as an officer or president was $50 a 
month. 

Senator McNamara. $50 a month salary ? 

Mr. Clancy. Eight. I believe that is what it was. 

Senator McNamara. Then the salary you received as president of 
tlie local union was apparently incidental to your way of making 
a living? 

Mr. Clancy. That is right. 

Senator McNamara. Were the duties of the president spelled out 
in your constitution and bylaws ? 

Mr. Clancy. Well, yes. I conducted the meetings. 

Senator McNamara. But if you were not a "business agent," ap- 
pointed by the "business manager" — am I using the correct terms? 

Mr. Clancy. That is correct, sir. 

Senator McNamara. Then you would have received $50 a month 
for acting as chairman of the meeting ? 

Mr. Clancy. Right. 

Senator McNamara. And the general affairs of the union were in 
the hands of whom ? Would it be the secretary-treasurer who would 
be in charge of the business affairs of the union ? 

Mr. Clancy. The general manager. 

Senator McNamara. The business manager ? 

Mr. Clancy. Right. 

Senator McNamara. The business manager and secretary-treasurer 
;are two separate individuals ? 

Mr. Clancy. Yes. 

Sneator McNamara. Jointly, then, they would be in charge of the 
affairs of the organization, is that tlie way it would be ? I mean the 
business affairs of the union ? 

Mr. Clancy. They would be in the hands of the manager. 

Senator McNamara. Not the secretary-treasurer ? 

Mr. Clancy. No. He is just working there, too. 

Senator McNamara. He would just have to report tlie financial 
transactions and keep track of them, is that the way you analyze it ? 

Mr. Clancy. That is right. 

Senator McNamara. So this man was really all powerful, and it 
was your job, except as appointed by him, was rather incidental, and 
just to be the presiding officer at the meetings ? 

Mr. Clancy. Right. 

Senator McNamara. In the American Federation of Labor unions 
that you have had experience with, isn't this rather a general pattern 
of unions, rather than the exception, that the president is just the 
chairman of the meetings ? 

Mr. Clancy. I couldn't say, sir. I don't know. 

Senator McNamar.\. I mean you have had experience and you have 
been in the business a long while, haven't you ? 

Mr. Clancy. Yes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7543 

Senator McNamara. You have gone to conventions and associated 
with other trade unionists ? 

Mr. Clancy. Yes. 

Senator McNamara. Don't you believe this is the general pattern in 
the A. F. of L. setup? 

Mr. Clancy. In some cases it is possible. 

Senator McNamara. You don't know ? 

Mr. Clancy. Not in all cases I don't ; no, sir. 

The CiiAiRsrAN. Senator Curtis. 

Senator Ciirtis You referred to this executive committee of 13 or 
12 members. Who selects them ? 

Mr. Clancy. They are elected by the membership. 

Senator Curtis. When were they elected ? 

Mp. Clancy. Well, they started in 1941 and they are elected every 
tenn of office, the same. 

Senator Curtis. How many of them are business agents ? 

Mr. Clancy. All of them. 

Senator Curtis. All of them. 

As to who is to be a busuiess agent depends upon Mr. Swanson ; is 
that right? 

Mr. Clancy. I told you, sir, he hires and fires the employees. 

Senator Curtis. So then he has an executive committee made up of 
business agents under him that he can hire and fire ; is that correct ? 
I am speaking of the executive committee. 

Mr. Clancy. He can hire and fire the business agents who happen 
to be members of the executive board. 

Senator Curtis. Who happen to be ? 

Mr. Clancy. Wlio are. 

Senator Curtis. In the chairman's opening statement, it says : 

The operating engineers is one of those unions which has all the characteristics 
of an exclusive club. In other words, it is imperative for a member to maintain 
his membership in order to keep his job. 

How did that operate ? How is it imperative for a member to main- 
tain his membership in order to keep his job ? 

Mr. Clancy. I couldn't answer, sir; I don't know. I couldn't 
tell you. 

Senator Curtis. But you knew it was true ? 

Mr. Clancy. What? 

Senator Curtis. That one of these workers, a member of this union, 
it is imperative for him to maintain his membership in order to keep 
his job ; is that true ? 

Mr. Clancy. No ; not necessarily. I have seen nonunion men work- 
ing, operating, members of other locals. 

Senator Curtis. Then that statement is not correct ? 

Mr. Clancy. No. Not where we work, anyway. 

Senator Curtis. I am certainly in an embarrassing situation here. 
I did not proceed to question the statement of our chairman, but I was 
inquiring as to how it operated. 

The Chairman. Senator, it is not embarrassing. Let's get the facts. 

Do you know anybody that can work on one of these construction 
jobs where it is a union job without paying dues ? 

Mr. Clancy. I have seen a number of them, Senator. 



7544 IMPROPER ACTWITIES EST THE LABOR FIELD 

The Chaikman. Then I am in error if I made an erroneous state- 
ment. 

Mr. Clancy. The trouble, I believe 

The Chairman. What do you do, give them a permit to work, and 
they pay for that, and yet they do not become members ; is that what 
you mean ? 

Mr. Clancy. No ; not necessarily, sir. 

The Chairman. Not necessarily, but that is the practice, isn't it ? 

Mr. Clancy. Sometimes. It all depends, Your Honor. 

The Chairman. Where you want to keep your membership down, 
for special reasons you grant him a permit to work on a special job 
and charge for it ; is that correct ? 

Mr. Clancy. Senator, we would not have started from 172 members, 
when I joined this local, to 22,000 if we had kept out the men that 
wanted to join the organization. 

The Chairman. Well, I thinl? that is true. You have grown and 
^own considerably, but we have had testimony before us here in some 
instances — and maybe your union does not work that way — where men 
could not join the union, but they were given a permit to work for 
which they paid so much a week. 

Yet they did not become members, and they had no voice in the 
union, but they paid to the union in order to be permitted to work. 

Mr. Clancy. Sometimes, sir, I have had men that wanted to remain 
a member of their local, and they liked their local in some other part of 
the country, and they would rather have come in and worked on a 
permit than to transfer their membership to our organization. 

The Chairman. And some were not members at all and had to pay, 
and they were not members of any union and they had to pay to get 
the privilege of working without becoming members. Do you know 
of that, too ? 

Mr. Clancy. They can become members, sir. 

The Chairman. I understand, but they have to pay to work. 

Mr. Clancy. They don't have to, sir. 

The Chairman. They do not work if they do not. 

Mr. Clancy. I beg your pardon, sir, but they do. 

The Chairman. You and I do not fully agree on it, but you give 
your testimony and you are certainly more familiar with it than I 
am. 

Mr. Clancy. I doubt that, sir. 

The Chairman. What is that ? 

Mr. Clancy. I doubt whether I am more familiar with it than you 
are. 

Senator Curtis. Mr. Chairman, were you through ? 

The Chairman. Yes. 

Senator Curtis. You spoke of the growth of this local. When was 
it that you only had 172 members ? 

Mr. Clancy. I believe it was in the old local in San Francisco in 
1932 or 1933. I forget which, sir. There were 172 or 174, and I am 
not sure exactly the numbers, but it was awfully small. 

Senator Curtis. By what method have you expanded so rapidly ? 

Mr. Clancy. Everybody wants to come and live in California, sir, 
and we have lots of work there, fortunately. 

Senator Curtis. But how did you expand your membership among 
those Calif ornians so rapidly ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7545 

Mr. Clancy. There has been fortunately a lot of work, as you all 
know, there in the State of California. Our State has been growing 
from just a small population to a huge population as you people all 
know. 

Senator Cubtis. 'What I am trying to get at is this : Wliat was the 
reason that all of these people working belonged to your union ? 

Mr, Clancy. They joined like any other good American citizen, the 
working man. They joined to better their hours and working condi- 
tions, which they have done in the State of California. I beg your 
pardon, Senator. 

Senator Curtis. The expansion has been by argmnent and persua- 
sion then with the members that joined. 

Mr. Clancy. As a rule you don't have to argue with a man to join 
an organization. 

Senator Curtis. Were some of them put into the union by contact- 
ing the employer ? 

Mr. Clancy. Not to my knowledge. 

Senator Curtis. Not to your knowledge ? 

Mr. Clancy. No. 

Senator Curtis. That is all, Mr. Chairman. 

The Chairman. Proceed. 

Mr. Kennedy. As far as your position in the union, as well as being 
the chairman at these meetings, you also signed the vouchers, did 
you? 

Mr. Clancy. Where there are vouchers, yes, sir. 

Mr. Kennedy. Where there are vouchers ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. That is another one of your positions in the union? 

Mr. Clancy. Yes ; I sign them. 

Mr. Kennedy. Now just going back to this second land transaction, 
plot No. 2, there was a profit in that transaction of $12,071. Did you 
get any money out of that? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You never knew that there was any money that came 
out of it? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You never knew anything about it ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You are sure of that ? 

Mr. Clancy. I am absolutely sure of it. 

Mr. Kennedy. You never knew tliat Swanson and Doran were get- 
ting any money out of that? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You never got any out of it yourself ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. You do not want to change your mind on that, Mr. 
Clancy? 

Mr. Clancy. No, sir ; I don't want to change my mind on it. 

Senator McNamara. While they are searching their records, do you 
remember endorsing any checks involved in this transaction or these 
transactions at all ? 

Mr. Clancy. I never did. 

Senator McNamara. As president of the union you would have no 
occasion to endorse the checks in the transaction ? 



7546 IMPROPER ACTIVITIES IN THE LABOR FIELD 



Senator McNamara. Was your signature required on checks that 
were paid out ? 

Mr. Clancy. No, sir. 

Senator McNamara. Whose signatures were required on checks that 
the union used in the transaction of ordinary business? 

Mr. Clancy. The secretary, treasurer, and the business manager. 

Senator McNamara. It required three ? 

Mr. Clancy. Yes, sir. 

Senator McNamara. I hand you a photostatic copy of a check dated 
July 13, 1955, and the check No. 5575 and it is a cashier's check payable 
to the order of Pat Clancy, on the American Trust Co., of San Fran- 
cisco, Calif., and I ask you to examine it and state if you identify it. 

(A document was handed to the witness.) 

(The members present are: Senators McClellan, McNamara, Ervin 
and Curtis.) 

Mr. Clancy. Yes. 

The Chairman. Do you recognize the check ? 

Mr. Clancy. Yes, sir 

The Chairman. That check may be made exhibit No. 17. 

(Document referred to was marked "Exhibit 17" for reference 
and will be found in the appendix on p. 7856. ) 

Senator McNamara. Wliat is the amount of the check ? 

The Chairman. $800. Is that amount correct ? 

Mr. Clancy. That is right. 

The Chairman. It is $800. Mr. Clancy, did you receive that 
check ? 

Mr. Clancy. Yes, sir. 

The Chairman. Did you endorse it ? 

Mr. Clancy. Yes, sir. 

The Chairman. Is that your signature on it ? 

Mr. Clancy. Yes, sir. 

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

Mr. Kennedy. What services did you perform for this check ? 

Mr. Clancy. That check is part of a loan of $1,000 from Victor 
Swanson, and my records will so show. I received $200 in cash and 
I received $800, and that is the check right there. 

Mr, Ej:nnedy. Wlien did you loan Victor Swanson the money ? 

Mr. Clancy. He loaned me the money and I still owe it to him. 

Mr. I^NNEDY. He loaned you the money, and this $800 ? 

Mr. Clancy. Yes, sir ; he loaned me $1,000, sir. 

Mr. I&]nnedy. He loaned you $1,000 ? 

Mr. Clancy. That is right. It was $200 in cash, and the check. ► 

Mr. Kennedy. You gave him a note for that ? 

Mr. Ci^vNCY. He has it ; yes, sir. 

Mr. Kennedy. And you give it to him ? 

Mr. Clancy. Wait a minute, it wasn't a note. It is just ani O U. 

Mr. Kennedy. An I O U and you gave it to him at this time for 
$1,000? 

Mr. Clancy. Within a day or so, or maybe at that time. 

Mr. Kennedy. And what do your records show ? 

Mr. Clancy. My records show why I got it, and who I gave it to. 

Mr. Kennedy. What did you do with this $1,000 ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7547 

Mr. Clancy. I cash it, or cashed the check, and I paid to a man 
that was doing some work for me, nine-hundred-and-some-odd dollars 
out of the $1,000 which I needed at that time very badly, as my records 
will show. 

Mr. Kennedy. Who was the man that you paid it to ? 

Mr. Clancy. C.C.Smith. 

Mr. Kennedy. And that work was going on at that time ? 

Mr. Clancy. Work was going on at that time. 

Mr. Kennedy. And you had to borrow the $1,000 from Mr. 
Swanson ? 

Mr. Clancy. Yes, sir; and you will find, if I may. Your Honor, 
that on the 1st of May I borrowed from a California bank $10,000, 
and I used it up right in there and this guy was on my neck because 
I owed him some money. 

Mr. I^nnedy. And you borrowed this $1,000 from Mr. Victor 
Swanson ? 

Mr. Clancy. That is correct. 

Mr. I^nnedy. And during this period of time you were objecting 
to how he was running the union, and the way he was handling the 
financial transactions ? 

Mr. Clancy. I wasn't objecting to it. 

Mr. Kennedy. I thought according to your testimony you did not 
like it. 

Mr. Clancy. He was doing it. 

Mr. Kennedy. And you disapproved of it, did you not ? 

Mr. Clancy. After a fashion. 

Mr. Kenndy. You testified here that you disapproved of it, and you 
had to go along with it. You went to him to borrow the $1,000 ? 

Mr. Clancy. We are working all together, right there. 

Mr. Kennedy. Did you borrow any other money from him ? 

Mr. Clancy. No. 

Mr. Kennedy. This is the only transaction ? 

Mr. Clancy. That is all I owed him then, and at various times 
maybe a few dollars now and then. 

Mr. Kennedy. Did you know about the $12,071 of the hidden profit 
on parcel No. 2, that that profit was used to buy this cashier's check, in 
part? 

Mr. Clancy. I did not. 

Mr. Kennedy. You did not ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. And that $800 then was made payable to you, as a 
cashier's check, and this $800 came out of that $12,000 of hidden profit ? 

Mr. Clancy. I did not know that ; no, sir. 

Mr. Kennedy. It is just a coincidence, and you just happened to go to 
Mr. Swanson and get $1,000 loan ; is that right ? 

Mr. Clancy. No ; I asked him for some money, and at that time we 
had a pension fund in, that I believe they have found, where we drew it 
out, and I was going to ask him permission to draw from that pension 
fund because I needed the money. But rather than draw from it, he 
said, "Well, we will see if we are going to hold that pension fund 
intact, and don't draw it." And so I borrowed $200 then, and he said, 
"I will get you the balance," and he handed me a check. 



7548 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Now, I wondered then why the check and why I didn't get cash, be- 
cause he had to go to the bank for it and he didn't have enough money 
there. 

Mr. Kennedy. You wondered what ? 

Mr. Clancy. I wondered then why he had to go to the bank, and 
he didn't have money enough in his office, in the safe in his office, 
and so when he came back from the bank, and the next time I saw 
him, maybe an hour or so later, he handed me the check. 

Mr. Kennedy. Why didn't you just get a regular check? 

Mr. Clancy. Wliy he didn't, I don't know. 

Mr. Kennedy. Why, instead of a cashier's check ? 

Mr. Clancy. I didn't get the cashier's check. He got it. 

Mr. Kennedy. But the cashier's check was turned over to you, and 
why did you receive a cashier's check ? 

Mr. ClAncy. Because he gave me that for the $800. 

Mr. Kennedy. Did you raise any question about it at that time? 

Mr. Clancy. No. 

Mr. 'Kennedy. Why wasn't just a regular check for $800 turned 
over to: you? 

Mr. Clancy. That I can't answer, sir. 

Mr. Kennedy. Why didn't you go to a bank and get the loan? 

Mr. Clancy. Well, if your man Gordon will get ahold of Mr. Smith, 
he will find that right approximately at that time I was in the Ameri- 
can Trust Bank oi'Ttlie corner and talking with the manager there re- 
garding a loan, that I needed some money, but I did not want to throw 
a plaster on my home just over a little bit tliat I needed, $1,000 at 
that time. 

Mr. Kennedy. You did not what ? 

Mr. Clancy. I did not want to throw a plaster on my home. 

Mr. Kennedy. So you decided to go to Mr. Victor Swanson, of 
whom you disapproved, and get $1,000 ? 

Mr. Clancy. I just asked him for a loan. 

Mr. Ivennedy. And during this period of time, you had raised 
questions with your fellow officials about financial transactions in- 
volving union money, had you not? 

Mr. Clancy. We talked about it, I believe, occasionally. 

Mr. Kennedy. But you went to the same man to get the $1,000? 

Mr. Clancy. Well, I went first to take my money, that was out of 
the pension fund, and I told you about that. 

Mr. Kennedy. After tliat you went to Mr. Swanson ? 

Mr. Clancy. That is where I went originally. 

Mr. Kennedy. But after that you got the money from Mr. Swan- 
son ? Would you answer the question ? 

Mr. Clancy. After it was decided not to take it out of the pension 
fund. 

Mr. ICJENNEDY. Now, in this third transaction, lot No. 3 was sold 
to Mr. Doran and ]\Ir. Swanson, did you approve of that ? 

Mr. Clancy. I don't ever remember selling a piece of property 
to Mr. Doran and Mr. Swanson. 

Mr. Kennedy. You do not ? 

Mr. Clancy. No. 

Mr. Kennedy. Did you sign any of the papers in connection with 
the sale of that property ? 



IMPROPER ACTIVITTES IN THE LABOR FIELD 7549 

Mr. Clancy. I could not tell you. There was a deed signed before 
a notary public one day, in the city of Stockton, and I was in a meet- 
ing in San Francisco with the contractors. So I don't know whether 
I could have been in Stockton at that time, and in San Francisco at 
the same time. 

The records show I was in San Francisco in a meeting. 

The Chairman. I hand vou here exhibit No. 11 to testimony already 
given. It is a document that appears to be dated February 14, 1956. 
The title of it is "Warranty Deed." 

The original date on it, or another date on it, is February 9, 1956. 
I imagine that is the date the deed was actually dated, and the other 
appears maybe to be the recording, recorded on February 14. The 
deed actually is dated February 9. 

I will ask you to examine it and state if that is a photostatic copy of 
the deed and if you signed the deed ? 

(At this point a document was handed to the witness.) 

Mr. Clancy. That looks like my signature on it. Senator, but I 
never remember signing it. 

The Chairman. You do not remember signing it ? 

Mr. Clancy. No, sir, and I never remember signing any deed with 
V. S. Swanson and Ed Doran on it, never, and I never remembered it. 

The Chairman. Do you say now that that is your signature? 

Mr. Clancy. I could not say. I would have to have a handwriting 
expert look that over to tell me whether that was my signature or 
not. 

The Chairman. It is your name, and it is spelled correctly, and 
written correctly, irrespective of who wrote it. Is that correct? 

Mr. Clancy It looks like it ; yes, sir. 

The Chairman. And it is signed in the capacity of what, with 
respect to the union ? 

Mr. Clancy. President. 

The Chairman. As president of the union ? 

Mr. Clancy. Yes, sir. 

The Chairman. It is either your signature or someone forged your 
name ? 

Mr. Clancy. One or the other. 

The Chairman. Did you authorize anyone to sign it ? 

Mr. Clancy. No, sir. 

The Chairman. You authorized no one to sign it ? 

Mr. Clancy. No, sir. 

The Chairman. So that is either your signature or it is a forgery ? 

Mr. Clancy. Yes, sir. 

The Chairman. And if it is your signature, then you participated in 
the transaction ? 

Mr. Clancy. There is another thing, sir. 

The Chairman. Yes, sir. 

Mr. Clancy. I have never to my knowledge signed any deed grant- 
ing V. S. Swanson and Ed Doran anything, period. 

The Chairman. To your knowledge. But if that is your signature, 
then your knowledge has failed you? 

Mr. Clancy. No, if that is my signature, then maybe the name of 
Doran and Swanson could have been filled in afterward. 

The Chairman. Did you ever sign any in blank, so that it conld h 
-ay" 



7550 IMPROPER ACTIVrTIES IN THE LABOR FIELD 

Mr. Clancy. That is very possible. 

The Chairman. Why would that be possible, that you would sign a 
deed in blank? 

Mr. Clancy. Well, if they were handed to me, I might have signed 
it. And we were not handling the business, handling the real estate. 
They were. 

The Chairman. So if Swanson had handed you a deed in blank, you 
would have just signed it ? 

Mr. Clancy. I might as well have. 

The Chairman. You might as well have ? 

Mr. Clancy. Yes, sir. 

The Chairman. So if he handed you one with his own name on it, 
you would have signed it also? 

Mr. Clancy. I am afraid not. 

The Chairman. You are afraid not ? 

Mr. Clancy. No. 

The Chairman. Why wouldn't you ? ^ 

Mr. Clancy. I have never signed one with his name on it. 

The Chairman. Did you ever sign any in blank ? 

Mr. Clancy. That I don't remember, too. 

The Chairman. You don't remember having done so ? 

Mr. Clancy. No, sir. 

The Chairman. Do you want this signature tested to find out 
whether it is yours or not? 

Mr. Clancy. That is right. 

The Chairman. All right, Mr. Counsel, submit it to the FBI, and 
let us have some expert look at it. 

Senator Curtis. On this exhibit which you have looked at, and said 
it looks like your signature, a notary public, George Munsel has 
attached his seal and his signature to this certificate. State of and 
city and county of, that isn't filled in. 

On the 9th day of February 1956, before me, George Munsel, a notary public 
in and for the city and State, personally appeared Pat Clancy, known to me 
to be the president, and C. F. Matthews, known to me to be the union secretary 
of a corporation, and executed the within instrumentality, and known to me 
to be the persons who executed it, the within instrumentality on behalf of the 
corporation therein named, and acknowledged to me that such corporation 
executed the same pursuant to its bylaws or resolution of its board of directors. 

It is signed by the notary public. 

Now, did you appear before George W. Munsel, notary public, and 
acknowledge this deed ? 

Mr. Clancy. I don't remember to have, no sir, and I don't remem- 
ber. 

Senator Curtis. Do you know the notary ? 

Mr. Clancy. Yes, sir, I know him. 

The Chairman. How well ? 

Senator Curtis. Where is his office ? 

Mr. Clancy. He is downstairs in our building, in the teamsters' 
building, in the teamsters' office downstairs. 

Senator Curtis. Is he connected with your union ? 

Mr. Clancy. No. 

Senator Curtis. How long have you known him ? 

Mr. Clancy. I don't know, I could not say. He works in the office 
down there, and I see him occasionally, and I nm not personally ac- 
quainted with him, real well acquainted with him. I know him. 



IMPROPER ACTIVITIES IN THE LABOR FIEIrD 7551 

Senator Curtis. Does he have a good reputation ? 

Mr. Clancy. I could not tell you that, and I don't know. 

Senator Curtis. Do you think that he would certify that you were 
present and acknowledged this deed if you were not ? 

Mr. CL.VNCY. I can't answer that, sir. I don't know. 

The Chairman. Do you think that he did ? 

Mr. Clancy. I don't know that. 

Mr. Kennedy. The signatures are identical with the other signa- 
tures Mr. Clancy has already identified. 

The Chairman. We can all have a layman's opinion about it, and 
I am perfectly satisfied, but for the record if he says he can't remember 
I would like to have it submitted to some recognized authority, the 
FBI or someone, and let them give us a statement about it for the 
record. 

That is unless you want to acknowledge it is your signature and tell 
us about the rest of the transaction ? 

Mr. Clancy. That is all I can say about it. I don't know any more 
about the transaction, and you have it there. 

The Chairman. All right. 

Proceed, Mr. Counsel. 

Mr. Kennedy. Are you aware of the fact that the imion sold this 
third parcel of property ? 

Mr. Clancy. Yes, sir. 

Mr. IvENNEDY. Were you aware at the time ? 

Mr. Clancy. I was told that it was being sold. 

Mr. Kennedy. By whom? 

Mr. Clancy. I don't know now. I could not tell you, maybe the 
secretary, or I don't know. 

Mr. Kennedy. You don't remember that? 

Did you consult with the membership about that? 

Mr. Clancy. No. 

Mr. Kennedy. You just sold the property? 

Mr. Clancy. The property was sold. 

Mr. Kennedy. Was it your duty as president to sign the deeds for 
the sale of property ? 

Mr. Clancy. Presumably, yes. 

Mr. Kennedy. It was, and so you inquired into why the union was 
going to sell this piece of property ? 

Mr. Clancy No. 

Mr. Kennedy. Did you think it was a good idea to sell it ? 

Mr. Clancy. That I did not know. I am not a real-estate man. 

The Chairman. You were not permitted to do much thinking were 
you, as president? 

Mr. Clancy. Now you hit the nail on the head, sir. 

The Chairman. I thought so. 

Proceed. 

Mr. Clancy. That is just what you did. 

The Chairman. Thank you. 

(Present: Senators McClellan, McNamara, Ervin, and Curtis.) 

Mr. Kennedy. Did you object much to the fact that they wouldn't 
allow you to think ? 

Mr. Clancy. No. 

Mr. Kennedy. You never objected to that ? 



7552 iMPROPEH AcnvrriEis in^ the labor field 

Mr. Clancy. No, sir. 

Mr. Kennedy. Were you ever down to look at this property ? 

Mr. Clancy. Yes. I seen it once when it was first looked at, and I 
seen it again when the building was built, and I was to a meeting there 
about a month ago. I seen it the second time. 

Mr. Kennedy. Did you see it when the building was going up ? 

Mr. Clancy. Not when the building was going up. I seen it when 
they first was looking at it, before they ever bought it or thought about 
buying it. They were just looking. 

Mr. Kennedy. You have only seen it twice ? 

Mr. Clancy. I have seen it twice ; yes. 

Mr. Kennedy. Wliat about when the union repurchased the proper- 
ty? Were you aware of that, when they repurchased lot No. 3? 

Mr. Clancy. No, I wasn't aware that that was purchased back, 
because there had been another piece of property purchased, and I 
thought that that was the piece of property which we were buying. 
That was another piece of property which I haven't ever seen, 

Mr. Kennedy. You couldn't have thought it was another piece of 
property, if it was another piece of property. 

Mr. Clancy. There is another piece of property that I guess you 
probably haven't come to yet. 

I thought possibly that was the piece of property. 

Mr. Kennedy. What did you think when you purchased the other 
piece of property ? 

Mr. Clancy. Well, there was a recommendation that came in that 
there was a good buy on a piece of property, so they went and bought 
it. 

Mr. Kennedy. That was the other piece of property. Then you 
bought this piece of property. What did you think that was ? 

Mr. Clancy. Never thought about it. Never give it a thought. 

Mr. Kennedy. You were president of the local, were you not? 

Mr. Clancy. And I was out in the field as a business agent, also. 

Mr. Kennedy. So you never found out about that piece of prop- 
erty? You never knew that you were repurchasing the same prop- 
erty that you had sold 6 months before? 

Mr. Clancy. No, sir, never. 

Mr. Kennedy. But the property you had sold for $15,000, you 
didn't know you were repurchasing 6 months later for $35,000? 

Mr. Clancy. Never knew about it. 

Mr. Kennedy. You were president of the local and you didn't in- 
quire into it at all. 

Mr. Clancy. No, sir. 

Mr. Kennedy. You got a little money from it? 

Mr. Clancy. No, not a dime. 

Mr. Kennedy. Not a dime ? 

Mr. Clancy. That is right. 

Senator McNamara. Mr. Chairman ? 

INIr. Kennedy. And you signed these checks or signed the vouchers 
for the $35,000 for the purchase of this land, did j'^ou not ? 

Mr. Clancy. Theoriirinal purchase? 

Mr. Kennedy. No, for the purchase of property No. 3, lot No. 3? 

(At tliis point, Senator Ervin withdrew from tlie hearing.) 



EVIPROPER ACTIVITIES IN THE LABOR FIELD 7553 

Mr. Clancy. I don't know whether the girl used my rubber stamp 
to stamp it or whether I signed it. I couldn't tell you. I would have 
to look and see. 

Mr. Curtis. Do you mean to say that the union members' money 
is checked out in the amount of $35,000 by a rubber stamp ? 

Mr. Clancy. I only signed the warrant, sir, not the check. 

Mr. Curtis. Who signs the check ? 

Mr. Clancy. I will repeat it. The manager, the treasurer, the 
recordijig secretary. 

Mr. Curtis. Before a check is issued, what documents must be 
signed ? 

Mr. Clancy. What documents ? 

Mr. Curtis. Yes. 

Mr. Clancy. Well, you sign a warrant, when you get around to it. 

Mr. Curtis. A warrant ? 

Mr. Clancy. That is right. 

Mr. Curtis. TVho else signs that besides you ? 

Mr. Clancy. The secretary. 

Mr. Curtis. Before they would get $35,000 out of the treasury to 
write this check, you would have to sign a warrant, is that correct ? 

Mr. Clancy. Not necessarily. Not necessarily. 

Mr. Curtis. Do you mean somebody can get $35,000 out of your 
union without you as president knowing about it ? 

Mr. Clancy. It is very possible, yes. 

Mr. Curtis. It is very possible ? 

Mr. Clancy. Sure. 

Mr. Curtis. That is according to your bylaws ? 

Mr. Clancy. If the secretary signs the warrant, and I am away, 
the other three sign the paycheck, or whatever you want to call it, the 
check, they got it, and when I come back, I sign the warrant. 

Mr. Curtis. Now tell us : Did you know that $35,000 was going out 
of the treasury of the union to repurchase parcel No. 3 ? 

Mr. Clancy. No, sir. 

Mr. Curtis. You never did know that ? 

Mr. Clancy. No, sir. 

Mr. Curtis. If they have troubles, Mr. Chairman, I can under- 
stand it. 

The Chairman. Incredibility seems to be the order of the day in 
some of these hearings. Let us proceed. 

Mr. KJENNEDY. I want to ask you about another transaction. Your 
testimony so far is very difficult either to believe or to understand. 
But did the union also purchase a boat ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. When did they purchase the boat ? 

Mr. Clancy. I don't know the dates. I have no idea now. It was a 
few years back. 

Mr. IVENNEDY. Back in 1947? 

Mr. Clancy. I don't know the date, sir. I can't tell. 

Mr. Kennedy. How much did they spend for the boat? First, how 
much did you say that you spent for the boat ? 

Mr. Clancy. I believe the boat was bought for $10,000. 

Mr. Kennedy. How much in fact was used ? 

21243— 58— pt. 19 4 



7554 IMPROPER ACTIVmES EN- THE LABOR FIELD 

Mr. Clancy. I understood later on that the boat cost $20,000, but 
I was led to believe that the boat — to my first knowledge, the cost of 
the boat was $10,000. 

Mr. Kennedy. What do you call these things ? Didn't you sign the 
vouchers, the warrants, for the purchase of the boat ? 

Mr. Clancy. I signed the warrant. Maybe I didn't sign that war- 
rant, neither. It might have been stamped. I am not sure. 

The Chairman. Who uses that stamp that lies around ? 

Mr. Clancy. One of the girls in the office stamps it. If the secre- 
tary signs it, one of the girls would do it, because I was away ; out. 

The Chairman. Wliich one of them do you authorize to stamp for 
you when you are away ? 

Mr. Clancy. I don't know. It is one of the girls in the office that 
made up the checks. 

The Chairman. Any of them or either of them could stamp when 
you were away ? 

Mr. Clancy. Whenever the secretary signs them. 

Senator McNamara. On the matter of the stamp, were you required, 
by virtue of the bylaws about being elected president, to furnish a 
facsimile stamp? 

Mr. Clancy. No ; I wasn't. 

Senator McNamara. You did this voluntarily ? 

Mr. Clancy. Well, because I was — ^yes, I was away ; occasionally I 
was out. 

Senator McNamara. Then the use of this stamp you assumed full 
responsibility for? 

Mr. Clancy. Yes. The girl had it. Naturally, it was my respon- 
sibility. 

Senator McNamara. And whether the girl used it or you used it, it 
was totally your responsibility ? 

Mr. Clancy. That is right. It was on the warrant. 

Mr. Kennedy. Mr. Chairman, could I ask Mr. Salinger to sum- 
marize what happened on the boat ? 

The Chairman. All right, Mr. Salinger, take the stand. 

TESTIMONY OF PIEERE E. G. SALINGER— Resumed 

(Present : Senators McClellan, McNamara, and Curtis.) 

Mr. Kennedy. Would you tell the committee what happened re- 
garding the boat tliat was purchased by local No. 3 ? 

First, on the authorization. 

Mr. Salinger. The executive board passed a resolution to allow the 
union to purchase a boat. The price of the boat was not specified in 
the resolution. 

Mr, Kennedy. Wliat day did the executive board meet? 

Mr. Salinger. The executive board met at 8 p. m. on July 30, 1947, 
according to their minutes. 

(Senator Mimdt returned to the hearing.) 

Mr. Kennedy. Were there checks written for the purchase of the 
boat approximately at that period of time? 

Mr. Salinger. On July 30, 1947, there were 3 checks drawn, 1 for 
$9,000, 2 for $500, which were entered into a book in a new account, 
set up to purchase the boat, indicating the boat cost $10,000. 



IMPROPJEK ACTIVITIES IN THE LABOR FIEI.D 7555 

Mr. Kennedy. Was there a fourth check written on that same day ? 

Mr. Salinger. There was. 

Mr. Kennedy. How much was that for? 

Mr. Salinger. $10,000. 

Mr. Kennedy. How was that charged? 

Mr. Salinger. Stolte, Inc., building account. 

Mr. Kennedy. What was that? 

Mr. Salinger. They were doing a building in Oakland and Stolte 
was doing the building. They put it on their books. In fact, there 
was an Oakland building account set up. They listed it as a cash 
payment toward the construction of the building. 

Mr. Kennedy. So they had $10,000 charged for the purchase of the 
boat, and another $10,000 that was charged to Stolte, Inc., and these 
checks were drawn on July 30. The executive board, authorizing the 
purchase of the boat, did not meet until 8 p. m. on July 30 ? 

Mr. Salinger. That is right. 

Mr. Kennedy. Did they ever take this up with the membership ? 

Mr. Salinger. There was a membership meeting on August 2. At 
these membership meetings, it does not specify what actions of the ex- 
ecutive board were read. It says a resume or synopsis of the actions 
of the executive board was read to the membership and approved. 

Mr. Kennedy. It says the actions of the executive board had been 
approved? 

Mr. Salinger. That a synopsis had been approved. 

Mr. Kennedy. So we do not know whether or not they were in- 
formed that they were going to purchase a boat, is that correct ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. In addition to that, it was 3 days after the checks 
were drawn for the purchase of the boat ? 

Mr. Salinger. Three checks actually set out to purchase the launch, 
and the fourth check to Stolte Building, Inc., but all drawn on July 
30. 

Mr. Kennedy. Some 3 days before the membership meeting ? 

Mr. Salinger. Correct. 

Mr. Kennedy. Have we traced the check drawn to Stolte, Inc. ? 

Mr. Salinger. Yes. 

Mr. Kennedy. Where was that ? 

Mr. Salinger. First of all, the ledger account of Stolte, Inc., we have 
checked that against the other checks drawn by Stolte, Inc., which, 
incidentally, were all payable to Stolte, Inc., the others being for cash, 
and the $10,000 entry does not appear at any place in here. 

Mr. Kennedy. Could we have that as an exhibit ? 

The Chairman. Is that a photostatic copy of the Stolte, Inc., ac- 
count ? 

Mr. Salinger. It is. 

The Chairman. That may be exhibit 1 8. 

(The document referred to was marked "Exhibit No. 18" for refer- 
ence and may be found in the files of the Select Labor Committee.) 

The Chairman. As I understand, all other entries where they paid 
Stolte, Inc., were entered, and the checks were payable to Stolte, Inc., 
as payee ? 

Mr. Salinger. That is right. 



7556 iMPROPEE ACTivrriES est the labor field 

The Chairman. In this instance, their records reflect no $10,000 
check at that time. 

Mr. Salinger. Stolte's records do not reflect it. 

The Chairman. Stolte's records do not reflect it, and the union's 
records reflect a check made out in cash for $10,000 ? 

Mr. Salinger. The Stolte building account shows July 30, cash, 
$10,000, check No. 24455, and there is a check here for $10,000. 

The Chairman. That photostatic copy of the union's record may 
be made exhibit No. 19. 

(The document referred to was marked "Exhibit No. 19" for ref- 
erence and may be found in the files of the Select Committee.) 

Mr. Kennedy. Did we inquire of the seller of the yacht as to how 
much the yacht cost ? 

Mr. Salinger. We did. 

Mr. Kennedy. Did he furnish a notarized statement ? 

Mr. Salinger. He furnished a letter which was notarized. 

This is to confirm our telephone conversation of Friday, January 10, 1958. I 
sold our 40-foot Chris-Craft cruiser, the Jeanie-Loti, to Mr. P. Vandewark and 
Mr. Victor S. Swanson in August 1947 for the sum of $20,000. 

The Chairman. 'Wlio endorsed that $10,000 check for cash? 

Mr. Salinger. The check is endorsed by all three officers of the 
union, Victor S. Swanson, C. F. Mathews, and D. E. Vandewark. 

The Chairman. In other words, the bank evidently gave those three 
officers, or one of them, the $10,000 in cash ? 

Mr. Salinger. That is correct, sir. 

The Chairman. And that is on the same date as the boat transac- 
tion ? 

Mr, Salinger. That is correct, sir. 

Mr. KJENNEDY. Did Mr, Clancy's name come into this transaction at 
all? 

Mr. Salinger. Mr. Clancy signed the warrant for the $10,000 to 
Stolte, Inc. 

Mr. Kennedy. And that $10,000 was, in fact, used for the purchase 
of the boat? 

Mr. Salinger. That is correct. 

The Chairman. Wliat does the warrant say ? 

Mr. Salinger (reading) : 

Cash, $10,000, Stolte, Inc., Oakland Building, authorized by Pat Clancy, presi- 
dent, C. F. Matthews, secretary. 

TESTIMONY OF PAT CLANCY— Resumed 

The Chairman. Mr. Clancy, I present to you this warrant Mr. 
Salinger just testified to, and ask you to examine the photostatic copy 
of it and see if you identify it. 

(Document handed to the witness.) 

Mr. Clancy. That is a warrant, all right. 

The Chairman. Is that your signature on the warrant ? 

Mr. Clancy. I believe it is. 

The Chairman. You believe it is? 

Mr. Clancy. Yes. 

The Chairivian. According to your best knowledge and belief, after 
looking at it, and examining it, you believe it is your signature? 



UMPROPER ACTIVITIES IN THE LABOR FIELD 7557 

Mr. Clancy. Yes. 

The Chairman. That warrant may be made exhibit No, 20. 

(The document referred to was marked '"Exhibit No. 20" for refer- 
ence and will be found in the appendix on p. 7857.) 

The Chairman. Proceed. 

Mr. Kennedy. What explanation do you have for that? 

Mr. Clancy. For what ? 

Mr. Kennedy. For the warrant. Do you see that there is anything 
we have said here that needs any explanation ? 

Mr. Clancy. Well, the Stolte Co. was building a building or doing 
some repairs, and they are getting 10,000 bucks for it, wasn't it, or that 
is what the warrant says. 

Mr. Kennedy. That is what the warrant says '? 

Mr. Clancy. That is right. 

Mr. Kennedy. That money was in fact used for the purchase of a 
boat. You filled out the warrant. 

Mr. Clancy. I signed the warrant. 

Mr. Kennedy. Do you have any explanation for that? 

Mr. Clancy. No. 

Mr. Kennedy. Wliy did you fill out the warrant for the Stolte Co. 
when, in fact, the money was used for the purchase of a boat ? 

Mr. Clancy. I signed the warrant. 

Mr. Kennedy. Right. 

Mr. Clancy. I don't believe at that time that I knew that that 
was going for a boat. 

Mr. Kennedy. You wouldn't sign a warrant for $10,000 without 
finding out how the money was going to be spent, would you, Mr. 
Clancy? 

Mr. Clancy. The Stolte Co., I may repeat, was doing work for 
the organization. I do not know how much work at that time, or 
what they were doing. 

Mr. Kennedy. But you would find out what kind of work or where 
that money was going, would you not, before you signed a warrant ? 

Wouldn't you look at the bill to find out what Stolte Co. wanted 
from you? 

Mr. Clancy. Yes, Mr. Kennedy. 

Mr. Kennedy. Wouldn't you find that out ? 

Mr. Clancy. Well, a warrant was brought in to me, and I probably 
signed the warrant. It looks like I signed the warrant and that 
was it, the warrant was signed. 

Mr. Kennedy. Did you have a billf rom Stolte Co. ? 

Mr. Clancy. Evidently not. I don't know. Maybe there was one 
with it. Maybe Pierre found one. I don't know. 

Mr. Kennedy. As a matter of fact there was none. This $10,000 
check was used for the purchase of this boat. Can you give us an 
explanation of your participation in this? 

Mr. Clancy. No. 

Mr. Kennedy. You just went ahead and did it? 

Mr. Clancy. Did what ? I signed a warrant. 

Mr. Kennedy. Yes. 

Mr. Clancy. Period. 

Mr. I^nnedy. You don't sign a warrant without having some 
€>vidence or information on which to base the warrant, do you ? 



7558 IMPROPER ACTrVITIES IN THE LABOR FIELD 

Would you sign a warrant for $10,000 without a bill, Mr. Clancy ? 

Is that funny ? 

Mr. Clancy. Sure it is funny. 

Mr. Kennedy. Why ? 

Mr. Clancy. Because you will find more of them that have been 
signed without a bill. Of course, it is funny. 

Mr. Kennedy. That is the procedure you followed? 

Mr. Clancy. Well, no, but Pierre has more warrants that were 
signed without a bill. 

Mr. Kennedy. Mr. Clancy, we are taking them one at a time with 
you. 

The Chairman. Would they all be funny, where they are signed 
without a bill ? 

Mr. Clancy;. I couldn't answer. I don't know. 

The Chairman. Well, you said you were laughing because it was 
funny, because it was signed without a bill. What I am getting at 
is is it funny tliat it is out of order and improper ? 

Mr. Clancy. No. 

The Chairman. Wliy is it funny ? 

Mr. Clancy. Well, you are submitted a warrant and the warrant 
was signed for the Stolte Co. The Stolte Co. had been doing work 
for us. 

The Chairman. But just the fact that somebody is doing work 
for you does not indicate that you just sit down and write out a check 
or a warrant for $10,000, without knowing that you owe it or know- 
ing there is some evidence of the indebtedness. 

Mr. Clancy. I don't have to know it. That is what we had a 
business manager for. He made all of those deals with the Stolte 
Co. He knew what was going on with the Stolte Co. If he was 
owing Stolte Co., he drew a check for them and paid them. 

The Chairman. As I understand your testimony, you were not 
permitted to think or know anything about what Avas going on any- 
how. 

Mr. Clancy. That is right. Thinking is awful hard anyhow. 

The Chairman. It is your theory that if somebody brought in a 
warrant and said here, sign this warrant, you simied it ? 

Mr. Clancy. I don't know if the secretary brought it in, or some- 
body handed it to me. I might have signed it a week later. I might 
have been out of town. 

The Chairman. In other words, a $10,000 transaction does not 
amount to anything anyway. No one supervises it or knows any- 
thing about it, or authorizes it. They just issue cliecks for it. Is 
that the way the business was transacted generally ? 

Mr. Clancy. The manager runs it. 

The Chairman. I am asking is that the way things were done? 

Mr. Clancy. The manager run the organization. That was his 
business. He run it. 

The Chairman. He runs the whole thing? 

Mr. Clancy. Yes. 

Mr. Curtis. This warrant you signed for $10,000 to Stolte, that 
was not your own money, was it ? 

That was not your personal money, was it ? 

Mr. Clancy. Wliat would I be giving— if I had $10,000, 1 wouldn't 
look at the Stolte Co. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7559 

Mr. Curtis. It wasn't your money. Whose money was it ? 

Mr. Clancy. Local 3. 

Mr. Curtis. Who owns the assets of local 3 ? 

Mr. Clancy. Well, up to a few months ago, I believe it was Victor 
S. Swanson. I am not sure. 

Mr. Curtis. Are you stating under oath that this did not belong 
to the members ? 

Mr. Clancy. No, no. It belonged to them after a fashion. 

Mr. Curtis. What authority do you have to sign a warrant for 
$10,000, on money that belonged to other people, the members, with- 
out having a bill before you or inquiring into it at all, and knowing 
where it is going ? 

Wliat authority did you have to do that? It is somebody else's 
money. 

Mr. Clancy. Well, I presume there was probably a motion on the 
books that we remodel and do these buildings. I don't know where 
that was back that far or not. There is probably a motion back in 
there that we remodel, if that is what he was doing. I don't even 
remember what he was doing at the time. 

Mr. Curtis. That does not answer my question. T^Hiat authority 
did you have to sign away $10,000 of other people's money without 
even getting the bill for it ? 

Mr. Clancy. I must have had the authority from the organization 
on the resolution to purchase buildings, to repair and purchase. That 
is probably the authority. 

Mr. Curtis. There may have been some authority to build or repair. 
I am not disputing that. But that authority did not mention this 
amount. I want to know what authority you had to direct the pay- 
ment of money that belonged to the members without any bill. 

Mr. Clancy. When you have the authority to build and erect, you 
must have the authority to pay the bills or you could not do much 
erecting. 

Mr. Curtis. But there wasn't any bill. Wliat authority did you 
have to draw a warrant when there was no bill existing ? There was 
no evidence of any amount owing to this Stolte Co. 

(Senator Kennedy entered the hearing at this point.) 

Mr. Clancy. You are talking about a bill from Stolte ? 

There might have been a bill there, Senator. There could have 
been. I couldn't say now that there wasn't a bill there. I wouldn't 
know whether there was or not. 

The Chairman. "\Vliy would you make it out in cash, tlien, instead 
of making it out to the fellow who submitted the bill ? 

Mr. Clancy. I don't know. I don't write them out. 

I don't make the checks out. 

The Chairman. That is another funny thing, isn't it? 

Mr. Clancy. Not necessarily. 

The Chairman. Let me ask you one other question. You know 
now that this money, this $10,000, went to purchase the boat? 

Mr. Clancy. I have heard it. 

The Chairman. That is your information ? 

Mr. Clancy. I have heard it. 

The Chairman. Proceed. 

Mr. Curtis. Did you ever ride in the boat ? 



7560 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Clancy. Three or four times — I forget when we purchased it. 
Since 1947 I think I have been in that probably not over five times, I 
don't believe. 

Mr. Curtis. Who else has used the boat ? 

Mr. Clancy. Swanson, the Swanson family. 

Mr. Curtis. Anybody else? 

Mr. Clancy. I don't know. It is down in the harbor. I am not 
donw there to watch it, sir. 

Mr. Curtis. I know. Do you know if anybody else used the boat? 

• Mr. Clancy. No ; I don't know anybody. I don't pay any attention 
to this boat. 

Mr. Curtis. But do you know the Swnnson family did? 

Mr. Clancy. I heard that ; yes. 

The Chairman. Who was using it when you were there? 

Mr. Clancy. Well, one day a carpenter that we had working for 
us took me out to try to catch a fish, and we didn't have very good 
luck. That was once. And one time a couple of Swanson's boys, and 
I believe Vic, we went out in the boat for just a little bit. But I am 
not much of a sailing man, and water there bothers me. 

The Chairman. The fact is that the boat was just used for the pleas- 
ure of the officers of the union ? 

Mr. Clancy. That I couldn't say, I am an ofHcer and it wasn't 
used for my pleasure. 

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

The Chairman. You didn't get any pleasure? 

Mr. Clancy. No ; I got sick the first time. I didn't get no pleas- 
ure. Well, I didn't. 

The Chairman. I don't doubt it. 

I imagine there are others who are sick about it now, too. 

Mr, Clancy. I couldn't tell you that. I am not. 

The Chairman. Senator McNamara ? 

Senator McNamara. Was the authority to purchase the boat ap- 
proved by the rank and file ? 

Mr. Clancy. If my memory goes back right, there was a resolu- 
tion, an executive board recommendation, a resolution, brought on 
the floor of the membership meeting. The reason I say I remember it 
being brought on the floor is because after the meeting a couple of 
members asked me if I thought the fishing was going to be real good, 
and I told them that I didn't have no care about fishing. That is 
how I remembered it coming on the floor. Otherwise I probably 
wouldn't have remembered that, sir. 

Senator McNamara. Well, you seem to have some recollection of 
it. Do you recall what the reason offered to the membership was 
for the purchase of the boat ? 

Mr. Clancy. Yes. 

Senator McNamara. What was it? 

Mr. Clancy. There was quite a few members working in the 
Bayonne dredges at the time, and we have jurisdiction over those 
dredges. The boat was to be used to service those men on the dredges, 
like take a man out, put him on a dredge, and that. That was what 
the boat was purchased for, to the best of my knowledge. 

Senator McNamara. Do you think it was quite a legitimate use for 
the moment, or you did at that time ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7561 

Senator McNamara. And it developed later that it was used pre- 
dominantly for this, or predominantly for the entertainment of the 
officers ? 

Mr. Clancy. I never paid no attention to it, and I don't know what 
it was used for, and I cared less. 

Senator McNamara. How much salary did you get for your job? 

You got $50 a month for being president. How much salary did 
you draw as business agent ? 

Mr. Clancy. When ? Now or prior ? 

Senator McNamar^^. How did you first get the job? It was by the 
appointment of who? 

Mr. Clancy. I was elected in local 59 back in 1936, 1 believe, if my 
memory serves me right, and I think we got $60 a week, then, I be- 
lieve, and furnished our own car for 3 cents a mile. I believe that is 
what it was. 

Senator McNamara. Wellj that is understandable. You were 
elected in the first place as business agent ? 

Mr. Clancy. Right. 

Senator McNamara. But since that time, the method has changed, 
and the business agents are now appointed by the business manager, 
is that correct ? 

Mr. Clancy. Well, in 1939 there was an amalgamation of some- 
where in the neighborhood of 17 locals, and we operated under inter- 
national supervision for 2 years — trusteeship I believe you gentlemen 
call it. That is a teamster term. We don't use it. 

Senator McNamara. What do you call it ? 

Mr. Clancy. Supervision. 

The Chairman. Is it just a different name for the same rose? 

Mr. Clancy. No, I wouldn't say that. 

Senator McNamara. What is the difference ? 

Mr. Clancy. Well, you got me kind of fouled — you got me work- 
ing on two projects at once. 

Senator McNamara. Let's work on this one. You say you were 
not in trusteeship. I am intrigued by the fact that there is a differ- 
ence between that situation and the situation you found yourself in. 
You indicate that there is a difference in your mind ; can you convey 
that difference ? 

Mr. Clancy. Well, I know some organizations work under trustee- 
ship, and our organization, our international then 2 years, was under 
supervision. Then it varies with the various organizations, I be- 
lieve, how they operate under supervision. 

Senator McNamara. As I understand it, when they are under 
trusteeship, the national office or the office from which you get your 
charter controls the union completely, and under a supervision it is 
still the same thing that applies, is that not right? 

Mr. Clancy. My idea of it is that when an international takes a 
local over and puts it under a trusteeship, they immediately impound 
all of the finances and funds and pay that into the international 
office wherever it may be, if it is here or Indianapolis or Miami, or 
wherever it is. And the membership dues are paid directly to the 
international union and the salaries are paid from the international 
union to the agents. 

Under the International Union of Operating Engineers the gen- 
eral president puts a supervisor in and that local is run just like local 



7562 IMPROPER ACTIVITIES IN THE LABOR FIELD 

3 is being run now, and the moneys are left there just like it is now, 
and just like it is. 

When they take it over, the dues are paid into the organization 
there, and the men or agents are paid out of the fund, and we pay 
our per capita tax to the international union, and to the State build- 
ing trades councils and the various councils. 

Now, that is the difference as I see it. Maybe you gentlemen have 
some other interpretations for it. If you have, you could enlighten 
me. 

Senator McNamara. You raised the question. 

Mr. Clancy. Pardon me ? 

Senator McNamara. You raised this question about the difference 
between trusteeship and supervision, and I think you have explained 
it pretty well. The difference is in the handling of the finances of 
the organization ? 

Mr. Clancy. They are left in the local union. 

Senator McNamara. We are back to 1956 when you were elected 
as business agent, and you received $60 a week. 

Mr. Clancy. I believe that is what it was. 

Senator McNamara. Let us accept it, that is about what it was. 
In 1939 this was changed, you indicated, by the taking over of this 
supervisory thing. 

Mr. Clancy. An amalgamation of a whole flock of small locals into 
one larger local. 

Senator McNamara. And taking over by the international ? 

Mr. Clancy. It was not taken over, and the membership in each 
local voted to amalgamate in one large local, and the international 
did not come in and take it over. The locals voted. 

Senator McNamara. This is the birth of local 3, then ? 

Mr. Clancy. That is right, that is the birth of local 3. 

Senator McNamara. Wliat happened to you at this point? 

Mr. Clancy. We were under supervision, at that time when they 
amalgamated, and I was financial secretary of the San Francisco 
local. I lost my position when it went under supervision. 

I was put on the road as a business agent, and organizer on the road, 
but I had no official capacity in the organization. 

Senator McNamara. Then what was your salary ? 

Mr. Clancy. I received $60. It was supposed to be 3 months, and 
it was about 6 ; then I got $75, and they furnished me a car. I believe 
they furnished me a car. 

No, wait a minute ; they bought that car in 1937. I don't know ; it 
is so long a time ago. 

Senator McNamara. From that time on you have received several 
increases in salary as the organization has grown ? 

Mr. Clancy. Then in 1939, after the amalgamation, we were under 
supervision until July. We had an election to go to local autonomy, 
and we went under local autonomy in 1941 in July. 

I ran for office, and I was elected, and I have been there ever since. 

Senator McNamara. As president? 

Mr. Clancy. That is right. 

Senator McNamara. AVere you immediately appointed business 
agent upon being elected president ? 

Mr. Clancy. Well, I was a business agent when I was elected. 

Senator McNamara. Wlien you ran for office ? 



fa 



IMPRiOPER ACTIVITIES IN THE L/\BOR FIE.'LD 7563 

Mr. Claxcy. And the new manager, when he came in, mider local 
autonomy he appointed me as business agent. 

Senator McNamara. Did you get more money at that point? 

Mr. Clancy. I don't think so. That is when the executive board 

aciously gave me the $50 a month, and I think that that is when that 
lappened. 

Senator McNamara. And that gave you a salary of what — $65, plus 
the car, or more ? 

Mr. Clancy. Xo; I think that we got an increase. I was getting 
$75, and you are getting your notes there confused. Senator. It was 
$75 a week, and I got that $50, and I don't know when it was, but 
gradually as the membership received an increase. We were never 
granted an increase unless the membership got an increase, to my 
knowledge. 

The Chairman. An increase in dues? 

Mr. Clancy. No ; wages. 

The Chairman. An increase in wages ? 

Mr. Clancy. Yes ; the agents. 

Senator McNamara. You get up to a salary of what? 

Mr. Clancy. $250. 

Senator McNamara. Plus the $50 for being president? 

Mr. Clancy. Yes, sir. 

Senator McNamara. And this was the only income that you had 
and you do not have income from other sources? 

Mr. Clancy. At the present time, I have. I have a ranch, and I 
have a small ranch, 46 acres, in the Sacramento Valley, that me and 
the Equitable Life Insurance Co. own. 

Senator McNamara. You have a partner ? 

Mr. Clancy. A real large partner, too. 

Senator McNamara. In the main you depend upon your salary for 
your livelihood, and this is the real hold this fellow had over you, 
because you were beholden to him to hold your job. Is that correct ? 

Mr. Clancy. Well, it would make it awfully interesting if I was not. 

Senator McNamara. I do not understand that answer. 

Mr. Clancy. Well, put yourself in the position, in my position. 
Hemember when the election was held, in 1941, there were 2 parties 
ran, just like our 2 parties in this great country, the Democratic and 
Republican. I was on the other side. 

Senator McNamara. Wliich side would that be ? 

Mr, Clancy. Well, I am a Democrat, but I was on the other side. 
Now, what would happen to a chairman who is a Democrat, with 10 
or 12 Republicans on the executive board ? I am just giving you an 
illustration, your honor. 

Senator McNamara. Are you in effect saying ''yes" to the question 
I ask you, if you were not beholden to this fellow for your job ? 

Mr. Clancy. That is right. 

Senator McNamara. Not to the opposition, but to the leader of the 
op])osite party ; is that right ? 

Mr. Clancy. That is right. 

Senator McNamara. So your answer was "Yes" ? 

Mr. Clancy. You can't put your head against a concrete wall for 
16 years, and it gets sores, Senator, so you have to go along. 

Senator McNamara. I am not criticizing you for it. I am trying 
to find out what your position is. There are questions which your 



7564 IMPROPER ACTIVITIEIS EST THE LABOR FIELD 

memory has been a little vague on, and I am trying to find out what 
motivated it. I think when you answered "yes" to this thing, in this 
roundabout way, that you answer the question, and you point out that 
this is the reason that you condoned these things. Is that not right? 

Mr. Clancy. I think so. 

Senator McNamara. That is all. 

Senator Kennedy. In other words, it was all Mr. Swanson's fault 
and it was not your fault at all, Mr. Clancy, is that right ? You did 
not know anything about the boat and you have only been on the boat 
five times and you don't know who was riding on it or anything 
about it ? 

Mr. Clancy. Well, I will say I knew about the boat. 

Senator Kennedy. You did not know anything about the real-estate 
transaction and you really did not know anything about anything, 
did you, and it is all Mr. Swanson's fault ? 

Mr. Clancy. He run it. Anybody that is in the city of San Fran- 
cisco or the bay area will tell you the same thing. You have had inves- 
tigators out there and they know and they have talked to other people 
in the area. 

Senator Kennedy^ So in other words, you did not have anything to 
do with it ; you do not know anything about what was going on and 
it was all Mr. Swanson's fault. 

Mr. Clancy. Sometimes I knew a little and sometimes I didn't. 

Senator Kennedy. What did you know ? 

Mr. Clancy. Various little things. 

Senator Kennedy. What sort of things ? 

Mr. Clancy. Well, like I knew that we were going to purchase a 
boat and I knew we were going to purchase one. 

Senator Kennedy. Did you know it was going to cost $20,000 ? 

Mr. Clancy. At that time, no ; I didn't. 

Senator Kennedy. When did you find out about it ? 

Mr. Clancy. I don't recall when I found out about it. 

Senator Kennedy. Why did you think that the $10,000 was con- 
cealed if it was going to be used to ferry your men to and from the 
barges in the harbor? Wliy was there any necessity to conceal the 
$10,000? 

Mr. Clancy. I didn't know it was concealed. 

Senator Kennedy. Wlien you found out about it, why do you think 
it was concealed ? 

Mr. Clancy. Well, I didn't. 

Senator Kennedy. You did not what ? 

Mr. Clancy. In fact, I am not sure it was concealed yet. 

Senator Kennedy. How much do you think that they paid for the 
boat? 

Mr. Clancy. I was told $10,000. _ 

Senator Kennedy. Is that what it cost ? 

Mr. Clancy. And I believe that Salinger read from articles here 
that will still lead a person to believe that that is what it was. 

Senator Kennedy. You did not know it cost $20,000 ? 

Mr. Clancy. Not for a long time after. 

Senator Kennedy. Wliy do you come here today, Mr. Clancy, and 
say you still believe it cost $10,000 ? 

Mr. Clancy. I still believe it, because I have no proof. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7565 

Senator Kennedy. You just said a minute ago that you did not find 
out for some while tliat it cost $20,000. 

Mr. Clancy. Then it is only hearsay, Senator. I never have seen 
them pay the rest of it and I never saw them give it to the man and I 
don't know unless I see it. 

The Chairman. Let me ask you, does the affidavit from the man who 
sold the boat that says he got $20,000 for it, and does the fact that a 
check was issued for $10,000 made payable to cash which you tliought 
was going to a construction company together with the fact that the 
construction company records do not show the receipt of the money — 
does that raise a little bit of suspicion with you that the boat might 
have cost $20,000? 

Mr. Clancy. Up to tliis moment I have not seen the affidavit from 
the man that the boat was bought from. 

The Chairman. Well, I think that you had better take a look at it 
when 3'ou get off the witness stand. 

Mr. Clancy. Well, sir, now, I haven't seen it. Have you showed 
it to me ? I have not seen it. 

The Chairman. Let us have it, 

I do not think that you will want to question it. I did not know you 
were questioning the other testimony ; so look at it and see if you want 
to question it after you look at it. 

Mr. Clancy. My testimony was being questioned on it, and I had 
not seen it. 

The Chairman. All right ; take a look at it and read it and see what 
it says. 

(A document was handed to the witness.) 

Mr. Clancy. The affidavit says they paid $20,000 for it, and so they 
must have. 

The Chairman. That, together with tlie fact that you were in- 
structed evidently to make out a check for cash or make out a warrant 
showing it was going to a construction company, all at the same time 
as this transaction, and the fact that the company did not get the 
money or the cash from the check — it raises a little suspicion that they 
may have possibly paid $20,000 for the boat ? 

Mr. Clancy. It looks like they did. 

Mr. Kennedy. Mr. Chairman, this witness, Mr. Clancy, participated 
actively in this transaction. It was you, Mr. Clancy, that made out 
the phony warrant, and you were the one that made these books appear 
fictitious. 

You made out a warrant for $10,000 to an organization to which the 
union did not owe the money and it was you who made all of this 
possible. 

Mr. Clancy. Was the company doing some work there, and how 
do I know ? 

Mr. Kennedy. But you never received a bill for this. 

Mr. Clancy. That I don't know. 

Mr. Kennedy. I am telling you the records show you never received 
a bill for this. You signed a voucher for $10,000 for an organization 
which never submitted you a bill and to whom you did not owe this 
amount of money. You made this transaction possible and don't 
blame everything on Swanson. 



7566 IMPROPER ACTIVITIES IN~ THE LABOR FIELD 

You are blaming; all of these Stockton land deals on Mr. Swanson. 
This is all Mr. Swanson and he was the general manager and yon 
say— 

I would have lost my job and I would have lost my livelihood. 
You are president of a local; you signed all of these vouchers and 
it is your responsibility. 

The Chairman. Is there anything further ? 

Senator McNamaka. Yes, Mr. Chairman. 

I do not want to appear like a witness for the defense but you did 
not sign this warrant with the idea the checks would be made out for 
cash and you had a right to assume that it was going to be made out 
to this construction company. 

Mr. Kennedy. It is made out to cash. 

Senator McNamara. I have not seen the warrants. How does the 
construction company enter into it from your position f 

Mr. Kennedy. Look on the bottom of the warrant. 

Senator McNamara. And you authorized this payment in cash to 
Stolte, Inc., in Oakland Building, is that right ? You authorized this 
payment in cash. Wasn't that an unusual thing for you to do? 

Mr. Clancy. Senator, I might have signed that warrant and 3 or 4 
days aftei- it was made out, and in fact I might have signed it a week 
after it was made out. 

Senator McNAixrARA. Which M'ould not change the facts, would it? 

Mr. Clancy. No. 

Senator McNamara. Whether you signed it on the same day or the 
day before or 3 days later, you still signed the warrant for cash. I 
am asking you, wasn't this an unusual transaction to specify that the 
union should pay in cash? I do not know how you escape this either, 
and I cannot quite see that. 

It is an unusual transaction and you do not commonly sign amounts 
of $10,000 to be paid out in cash, do you? Ordinarily, they would be 
paid by check, but this warrant specifies it was to be paidby cash to 
this company. You do not do a very good job of explaining that, sir. 

There is nothing you can add to it ? 

Mr. Clancy. No ; it is a warrant. 

Senator McNamara. All right. 

The Chairman. Is there anything further ? 

Senator McNamara. That is all. 

The Chairman. The committee will stand in recess until 2 o'clock 
tomorrow afternoon, and Mr. Clancy, you will appear at that time. 

("^^Hiereupon, at 4 : 40 p. m., the hearing in the above-entitled matter 
was recessed to reconvene at 2 p. m., of the following day.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR .MANAGEMENT FIELD 



WEDNESDAY, JANUARY 22, 1958 

United States Senate, 
Select Commiitee on Improper Acitvities 

IN the Labor or Management Field, 

Washington,, D. C. 

The select committee convened at 10 : 30 a. m., pursuant to Senate 
Kesolution 74, agreed to January 30, 1957, in the caucus room, Senate 
Office Building, Senator John L. McClellan (chairman of the select 
committee) presiding. 

Present: Senator John L. McClellan, Democrat, Arkansas; Sena- 
tor Irving Ives, Republican, New York; Senator Sam J. Ervin, Jr., 
Democrat, North Carolina; Senator Barry Goldwater, Republican, 
Arizona ; Senator Karl E. Mundt, Republican, South Dakota ; Sena- 
tor Carl T. Curtis, Republican, Nebraska; also present: Robert. F. 
Kennedy, chief counsel; Jerome S. Adlerman, chief assistant counsel; 
Pierre S. Salinger, investigator ; Josepli I. Gordon, a GAO investi- 
gator on loan to the committee; Ruth Young Watt, chief clerk. 

(Members of the select committee present at the convening of the 
session vs^ere Senators McClellan and Curtis.) 

The Chairman. The committee will come to order. Call the next 
witness. 

]Mr. Kennedy. Mr. Chairman, I would like to correct a matter in 
the record from yesterday concerning the chart. Instead of "Hidden 
Profit to IJnion Officials,-' as we had on the chart yesterday, it should 
be "Hidden Payment to IJnion Officials." 

These officials did pay $15,000 for this land. Therefore. $16,000 
should be deducted from the $59,000, as far as the profit is concerned. 
So the profit would be $44,000, and the amount would be $59,000. 
That should be corrected for the record. 

Tlie Chairman. All right. The record stands corrected. The 
Chair yesterday, in his opening statement, said that this local No. 3, 
I believe, was the largest local. My information is that it is not the 
largest in membership, but largest in area. 

That was not quite clear at the time I made the opening statement. 
It appears now that there are a few others, maybe, that may have a 
larger membership. But local No. 3, I believe, covers t\w largest 
geographical area of any major union. 

Mr. Kennedy. The first witness is Mr. Patrick Joseph Clancy. 

The Chairman. Come forward, Mr. Clancy, 

7567 



7568 IMPROPER ACTIVITIES IN THE LABOR FIELD 

TESTIMONY OP PATRICK W. CLANCY— Eesumed 

The Chairman. You were sworn yesterday. We will resume your 
testimony. 

Mr. Kennedy. Mr. Clancy, we were talking about the boat yester- 
day. Do you know of any time that the boat was used for official 
business for the union ? 

Mr. Clancy. Mr. Chairman, if I may correct the record when we 
start. The name is not Patrick Joseph Clancy. It is Patrick William. 

The Chairman. All right. 

Mr. IvENNEDY. Mr. Clancy, do you know of any time that the boat 
was used for any union purposes ? 

Mr. Clancy. I don't know. I don't remember if it was. I don't 
remember. 

Mr. Kennedy. Do you remember any time it was ? 

Mr. Clancy. I never used the boat. I wasn't around it. So I 
wouldn't know. 

Mr. Kjennedy. The answer is you do not know ? 

Mr. Clancy. I don't know whether it was or not. 

Mr. Kennedy. Do you know how much the boat has cost the union? 

Mr. Clancy. How much it has cost ? 

Mr. Kennedy. Yes. 

Mr. Clancy. No, I don't. 

Mr. Kennedy. Well, the original price was $20,000. In addition 
to that, Mr. Chairman, according to the records that we have, it cost 
another $31,076.86. That is through 1956. In 1954, they had $12,- 
680,29 worth of Cadillac engines installed in the boat. 

The Chairman. We have a member of the staff who can verify 
that? 

Mr. I^NNEDY. Yes. 

TESTIMONY OF JOSEPH I. GOEDON— Eesumed 

The Chairman. You were sworn yesterday, so you may resume 
your testimony. Proceed. 

Mr. KJENNEDY. Do you know how much the payments amount to 
that have been made for the improvements and the upkeep of the boat 
since it was purchased, Mr. Gordon ? 

The Chairman. Let me ask you this question : Did you get these 
figures that you are going to testify to from the records of the union ? 

Mr. Gordon. Yes, sir. We have a summary here of the totals for 
the years 1950 through 1956, a total of $31,079.86. In 1954, they in- 
stalled some Cadillac engines, and they had to do an awful lot of 
converting. 

The Chairman. In 1954 ? 

Mr. Gordon. Yes ; in 1954. They put in some ship-to-shore com- 
munications and other things. We have a tremendous list of things 
that they actually put on. It is a very fine point. 

The Chairman. Do you have a list that can be made a part of the 
record ? 

Mr. Gordon. Yes. As a matter of fact, it runs to a tremendous 
amount of paperwork. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7569 

The Chairman. Let the paperwork be filed as an exhibit for refer- 
ence only, such as you identify, Mr. Witness. It may be filed as ex- 
hibit No. 21 for reference only. 

(The document referred to was marked "Exhibit No. 21" for ref- 
erence and may be found in the files of the select committee.) 

The Chairman. You may summarize in your testimony what the 
exhibit reflects. 

Mr. Gordon. By years ? 

The Chairman. By year. 

]\Ir. Gordon. Well, on this particular page here, in 1950 they had 
a tremendous number of repairs. 

Mr. Kennedy. Do you want it by year, Mr. Chairman ? 

Mr. Gordon. I think I am a little confused. I do not know 
whether you want me to actually 

The Chairman. Just show the total spent on the boat each year, 
by year, and what the grand total is. That will be sufficient. 

(At this point, Senator Gold water entered the hearing.) 

Mr. Gordon. In 1950, they spent $2,862.66. In 1951, they spent 
$2,188.73. In 1952, they spent $2,735.80. In 1953, they spent 
$1,435.10. In 1954, $12,680.29. In 1955, they spent $3,909.61. In 
1956, it was $5,267.67, giving a grand total of $31,079.86. 

The Chairman. Does that cover all of the expenses of the boat dur- 
ing that period ? 

Mr. Gordon. Yes. 

The Chairman. Does that cover the operating expense ? 

Mr. Gordon. Tliat is the operating expense that we have on the 
boat. It does not include the original purchase price of $20,000, Mr. 
Chairman. 

The Chairman. Senator Curtis ? 

Senator Curtis. Do those figures include a crew ? 

Mr. Gordon. No. They didn't have a paid crew. Mr. Vandewark 
for a long time handled the boat, and at other times Marshall Swan- 
son or Victor Swanson or the sons piloted the boat. 

Senator Curtis. Did that include fuel ? 

Mr. Gordon. Yes ; it included fuel. 

Senator Curtis. Did that boat have a log ? 

Mr. Gordon. I tried to obtain the log, and I was not able to get 
the log. I was told that one was not maintained by Mr. Vandewark. 

Senator Curtis. Did you find any evidence that the boat was used 
for anything other than the personal pleasure of the individual officers 
of the union ? 

Mr. Gordon. No, I didn't find any evidence. At one time, and I 
have forgotten who told me, they did have some international vice 
presidents visit in San Francisco, and that is the only time that they 
actually used it on what could be official business. I cannot remember 
who told me that information. I think it was Mr. Vandewark. 

Senator Curtis. I would like to ask Mr. Kennedy a question. Do 
we have any evidence of the individuals who got the benefit of this 
boat reporting it in their income tax as additional income ? 

Mr. Kennedy. I have no information one way or the other. 

Mr. Gordon. I could add one more thing. Marshall Swanson, the 
owner of the Marshall Development Co., did use the boat from time 

21243— 58— pt. 19 5 



7570 IMPROPER ACTIVITIES EST THE LABOR FIELD 

to time. I am told by his brother, Russell Swanson, that from time 
to time he had guests on the boat. 

Senator Curtis. Is he a member of the union ? 

Mr. Gordon. Yes, he is a member of the union. 

Senator Curtis. But he is also the son of the business manager? 

Mr. Gordon. Yes, sir. 

Senator Curtis. He was the owner of the union. That is all. 

The Chairman. He also runs the real-estate agency that does busi- 
ness Avith tlie union ? 

Mr. Gordon. Yes. He owns the Marshall Development Corp. 

TESTIMONY OF PATRICK W. CLANCY— Resumed 

Mr, Kennedy. You say, Mr. Clancy, that you Imow of no time that 
the boat was ever used for union purposes, is that right ? You know 
of no time, yourself, that the boat was ever used? 

Mr. Clancy. I cannot remember any, Mr. Kennedy, right at the 
present moment, because I didn't pay any attention to it. 

Mr. Kennedy. The answer is you do not know ? 

Mr. Clancy. No. I don't remember. 

Mr. Kennedy. In addition to having the boat, did you also have a 
plane ? 

Mr. Clancy. That is right. 

Mr. Kennedy. When did you buy the plane ? 

Mr. Clancy. When did I buy it i 

Mr. Kennedy. When did the union buy the plane ? 

Mr. Clancy. That ship was brought in — that is an AT-11, surplus 
Army. It was purchased in, I believe, 1948 or 1949. I am not sure 
of the year or tlie dates, but it was along in that time. 

Mr. Kennedy. That plane was to be used because you had such a 
large area to cover, to go to the various projects ; is that right ? 

Mr. Clancy. Right. 

Mr. Kennedy. You had a 3- or 4-State area that local 3 had to 
cover, your jurisdiction? 

Mr. Clancy. Yes; three States. Leave the fourth out. It is a 
-three-State area. 

Mr. Kennedy. Three States? 

Mr. Clancy. Yes. 

Mr. Kennedy. And the union purchased this plane back in 1947? 

Mr. Clancy. No ; 1948 or 1949. 

Mr. Kennedy. Is that the plane that they still have ? 

Mr. Clancy. That is right. 

Mr. Kennedy. What kind of plane is that ? 

Mr. Clancy. That is a twin-engine Beech. It is called an AT-11, 
Army model ; a UC-7, I believe the Navy called it. It is a surplus 
version, anyhow. 

Mr. Kennedy. You were the pilot of the plane ? 

Mr. Clancy. That is right. 

Mr. Kennedy. You did the flying for the union ? 

Mr. Clancy. That is right. 

Mr. Kennedy. Has the plane been used lately on many of these 
union projects? 

Mr. Clancy. I haven't flown the plane since last— I don't know- 
probably March, April, or May, along in there. I don't believe that 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7571 

that entry — I meant to get that entry for the logbook which you have 
there. Did I give you that last entry, Joe ? 

We live with them so long that we know them pretty personally. 

Mr. Kennedy. The plane, in some areas, has not been used for many 
union projects over tlie period of the last few years ; is that right ? 

Mr. Clancy. Well, no ; we haven't used it too much in the last few 
years, but practically all of its use was for union business, practically 
all of it. There is a little bit of it that wasn't, but practically all of 
it was. 

Mr. Kennedy. Did you ever use it for other than union business I 

Mr. Clancy. One time. 

Mr. Kennedy. What did you do then ? 

Mr. Clancy. Well, liere about December 26 — I would have to have 
my log book to tell you exactly. 

'Mr. Ivennedy. I don't use the exact dates. 

Mr. Clancy. Well, you might call me a liar afterward. I would 
like to have the dates pretty close. 

Mr. Kennedy. Well, let's say December. December of what year? 

Mr. Clancy. December of 1956, I believe it was, I used the plane 
for — well, let's see, we go by hours, the flying hours. It was approxi- 
mately 16 hours. I would have to add them out of my logbook. 

Mr.' Kennedy. Where did you go in the plane ? 

Mr. Clancy. Down to Mexico City ? 

Mr. Kennedy. Who did you go with ? 

Mr. Clancy. My wife, another official of the local, and his wife. 

Mr. Ivennedy. You took a trip, a vacation down there ? 

Mr. Clancy. I was on my vacation. 

Mr. Kennedy. How long were you down there ? 

Mr. Clancy. Two weeks, approximately. A little bit less than 2 
weeks. 

Mr. Kennedy. That is the only time you have used it for pleasure, 
just that once? 

Mr. Clancy. Well, yes, I believe it is. I believe it is. 

Mr. Kennedy. Did you make any other trips to Mexico ? 

Mr. Clancy. I did, but I considered when I was flying it then, I 
wasn't on pleasure, I was working, because it is work, Mr. Kennedy, 
to fly a seven-passenger airplane. 

Mr. Kennedy. Was that another trip to Mexico? 

Mr. Clancy. Yes. 

Mr. KJENNEDY. Who were you witli on the other trip to Mexico ? 

Mr. Clancy. Swanson, the secretary, Brother Mathews, Vande- 
wark, and a friend of ours that works for the United Air. He went 
with us. I believe that was all. I think there were five of us. 

Mr. Kennedy. You went down to Mexico for a vacation ; did you ? 

Mr. Clancy. Well, it was a vacation, but it was only a week, we 
was gone a week. In fact, that year I had 2 weeks' vacation coming, 
and that is the only week I got, and I never did consider that as a 
vacation, because I was working. 

Mr. Kennedy. You are a pretty good pilot ; are you, Mr. Clancy ? 

Mr. Clancy. I hold a commercial license with an instrument rat- 
ing, sir. I wouldn't say I am the best in the world, but I can get up 
and down. 

Mr. Kennedy. Did you every get down and crash ? 



7572 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Clancy. I made a forced — I was forced on instruments one 
time. 

Mr. Kennedy. Where were you forced ? 

Mr. Clancy. About one-quarter of a mile off the end of the runway 
in San Francisco Bay. I put it in with the gear down. If you think 
that ain't a pretty good piloting job, Bob, have at it. 

Mr. Kennedy. You landed in San Francisco Bay ? 

Mr. Clancy. With the gear down. That is the problem. 

Senator Goldwater. Why didn't you pull the gear up ? 

Mr. Clancy. I was on instruments, sir, cleared in on instruments, 
on final. 

Senator Goldwater. You were just short of the runway ? 

Mr. Clancy. I was coming in on instrument approach. 

Senator Goldwater. You were short of the runway ? 

Mr. Clancy. I was a little bit low, sir ; yes ; I got a little bit low. 

Mr. Kennedy. Do you know how much it cost to repair the airplane 
that time ? 

Mr. Clancy. No. I haven't got the figures, the exact figures. We 
were authorized to go ahead and repair it, to fix the ship up. 

Mr. Kennedy. Do you know what the book value of the plane was 
at that time ? 

Mr. Clancy. Well, at one time there was an offer made. The book 
value, Mr. Kennedy, depends. It is just like a couple of weeks ago, 
the United States Government released, I think, quite a number of 
those planes, so that brings the value down. Next week the value may 
go back up. It is pretty hard to tell what the book value is. 

Mr. IvENNEDY. Do you know what the book value was at the time 
you landed in San Francisco Bay with your gear down? 

Mr. Clancy. What do you mean by the book vahie ? 

Mr. Kennedy. Well, the book value you were just talking about. 

Mr. Clancy. The Blue Book value or what ? 

Mr. Kennedy. Your book value of the plane in the books of the 
local. 

Mr. Clancy. I don't keep the books of the local. I don't know 
what that is. 

Mr. I^NNEDY. Do you know how much the repaii^ were ? 

Mr. Clancy. No ; offhand, I don't. 

Mr. Kennedy. Would you like to know ? 

Mr. Clancy. Yes. That would be interesting. 

Mr. EJENNEDY. The book value of the plane at the time you made 
the crash was $7,992.20. The repairs that were made at union ex- 
pense, when you landed in San Francisco Bay with the gear down was 
$32,252.28. 

Mr. Clancy. Well, I believe probably at that time the ship — that 
was in 1953 ? At that time probably the market value of the airplane 
at that time would have probably been in the neighborhood of $35,000 
to $40,000, at that time. I believe if you get the records back and 
look at the market value of those airplanes then, that that is what you 
will probably find. 

Mr. Kennedy. I am just reading the market value at that time. 

Mr. Clancy. Thanks for enlightening me to the actual cost of re- 
pairs, because I did not keep the actual cost. 

Mr. Kennedy. Do you know how much the plane has cost the union 
other than that, since 1950 ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7573 

Mr. Clancy. No, I don't. 

Mr. Kennedy. You don't have any of those figures ? 
Mr. Clancy. No. 

Mr. Kennedy. You were not president of the local at that time ? 
Mr. Clancy. That is right, but I am not the bookkeeper, sir. I am 
the president. 

Mr. Kennedy. Mr. Gordon, do you have those figures ? 
Mr. Gordon. Yes, sir. 

TESTIMONY OF JOSEPH I. GORDON— Resumed 

Mr. Kennedy. Mr. Gordon, have you made a study of the books to 
find out what the expenses have been to the union for this plane, other 
than the repairs ? 

Mr. Gordon. Yes, I have. I found the operating expenses — I made 
tabulation of the operating expenses very much like the launch. We 
reproduced the ledger sheets. My summary here shows that in 1950 
they spent $4,249.22 ; in 1951, $5,199.22 ; 1952, $4,526.04 ; 1953, $1,420.85 ; 
1954, $3,824.04; 1955, $2,218.83; 1956, $3,018.43; giving a grand total 
of $24,456.63 for the period 1950 through 1956. 

Mr. Kennedy. Do you have how much the plane cost originally? 

Mr. Gordon. Yes. Originally it cost $16,261.03, and they put quite 
a few additional items to it, and it increased the capital cost to $22,- 
835.21 by March 1949. We had no other entries in the ledger until 
after the crash happened, in 1952. 

Mr. Kennedy. Do you have the total cost of the air})]ane origi- 
nally, the repairs that were made at the time of the accident, and the 
operating cost ? 

Mr. Gordon. No, but I can get it for you. Yes. It is sixty-four- 
thousand-some-odd dollars. I have the figures there. It is $64,701.11, 

Mr. Kennedy. It is $24,000 

Mr. Gordon. It is $24,000 and $40,000. You see, the additions of 
ihe $16,000. plus all the other additions, comes up to $22,835. and 
$32,252 

Mr. Kennedy. Well, that is fine. At the time that they repaired 
this airplane that Mr. Clancy testified to, did they have to build a 
special cover for it? 

]Mr. Gordon. Yes, they did, at the airport. 

Mr. Kennedy. How] much did that special cover or house cost? 
That is included in tlie $32,000 ? 

Mr. Gordon. No. That is in addition. I believe it ran about 
$1,035. 

Mr. Kennfj)y. That was a special cover for the airplane so they 
could make the repaire? 

Mr. Gordon. Yes. 

Mr. Kennedy. Who did they go to to get that done? 

Mr. Gordon. There were some meclianics at tlie South San Fran- 
cisco Airport area, and they worked off-duty hours. 

Mr. Kennedy. Did Mr. Cameron have anything to do with this? 

Mr. Gordon. As I remember it, it was Donald A. Cameron, Inc., 
that built the building. 

Mr. Kennedy. How much did the building cost? 

Mr. Gordon. As I remember it, it was about $1,035. 



7574 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Was Mr. Donald Cameron a partner of Mr. Marshall 
Swanson ? 

Mr. Gordon. He was a part of the corporation, Donald A. Cam- 
eron, Inc. The other stockholder was Marshall Swanson, the son 
of Victor S. Swanson. 

Mr. Kennedy. Was Mr. Donald Cameron at that time on one of 
the city commissions ? 

Mr. Gordon. He was a public utilities commissioner, along with 
Victor S. Swanson, yes, sir. 

Mr. Kennedy. We will go further into that matter at a later time. 

Senator Goldwater. Could I ask a question before you leave? I 
noticed on the ledger sheet that there was a trade-in value on a Cessna. 

Mr. Gordon. They had another plane, yes, sir. 

Senator Goldwater. Before the AT-11? 

Mr. Gordon. Yes, sir. 

Senator Goldwater. What type of Cessna was that? Was it the 
old twin-engine? 

Mr. Clancy. It was w^hat they called a bamboo bomber, if you are 
familiar with them. 

Senator Goldwater. Yes, I remember that. 

Mr. Clancy. It was a Cessna UC-78. 

Senator Goldwater. How long did you have that ? 

Mr. Clancy. I think I put in about 300 hours in that airplane, but 
it wasn't too good on single engine. If you are familiar with the 
airplane, you know what I am talking about. Senator. 

Mr. Gordon. We have the ledger on that Cessna, too, sir. It was 
actually purchased November 26, 1947. 

Senator Goldwater. How much did the}- spend on that ? 

Mr. Clancy. I don't 

Senator Goldwater. Are you giving us the total airplane account 
when you give us $69,000 ? 

Mr. Clancy. Yes. 

Senator Goldwater. That includes the trade-in on the Cessna? 

Mr. Clancy. Yes. 

TESTIMONY OF PATRICK W. CLANCY— Resumed 

Mr. Clancy. Senator, I believe you will find that that 78 was not a 
safe airplane. Between the city of Salt Lake and Auburn, Calif., 
hauling passengers, if I was going over there alone, it wouldn't have 
mattered, but hauling passengers it would not hold. Well, it wasn't 
an instrument ship, so you would have to have at least 9,000. Well, 
you could have gotten by with 7,000 on single engines to get you in, 
but it wouldn't hold that, and you know that probably as I do. 

Senator Goldwater. The tech order had an 8,500-foot ceiling on 
single engine. 

Mr. Clancy. On the Beech. 

Senator Goldwater. No ; on the Cessna. It was not a safe airplane 
even standing on the ground. 

Mr. Clancy. Thank you. That bears out my reason for wanting 
a better one. 

Mr. Kennedy. So between purchasing and operating the airplane 
and the boat, it cost the union approximately $120,000. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7575 

Mr. Clancy. Mr. Chairman, there is one thing that I think we 
overlooked that shoukl be in the records. Wlien I went on my vaca- 
tion to Mexico, after I left Nogales, xVriz., the expense from there 
down and back to Phoenix was paid by ns out of our own pocket. 

Local No. o didn't pay that. In the 'expense of the operating engi- 
neers using that Beech, that Beech, I always figured our cost was 
approximately $17 an hour. If you will figure the hours and the 
passengers moved from various places, the Beech was always making 
money in comparison with the airline operations. 

Mr. Kennedy. You used your own money on the trip to Mexico? 

Mr. Clancy. That is correct. 

Mr. Kennedy. Did you try to use your travel card? Your credit 
card ? 

Mr. Clancy. Well, I think I was used to pulling them out, and 
down in Nogales, the guy said "No savvy," and I said "Bueno." 

Mr. Kennedy. So you tried 

Mr. Clancy. No; I didn't try. If you are used to using a card, 
and you gas up, what would naturally be your first thing ? 

Mr. Kennedy. To pull out the union credit card. 

Mr. Clancy. A credit card, let's put it that way. Not boosting 
the Union Oil Co. 

Mr. IvENNEDY. This happened to be a union credit card ? 

Mr. Clancy. The Union Oil Co. credit card ? 

Mr. IvENNEDY. No, the union credit card. The union furnished 
them. 

Mr. Clancy. It might have been, or it might have been my own. 
I don't remember. I also have a credit card. 

Mr. Kennedy. I would like to just ask you a few more questions. 
Did you ever take what we describe as a check-cashing expedition? 

Mr. Clancy. Yes. 

Mr. Kennedy. ^Ylien did you do that? Was that about July of 
1956? 

Mr. Clancy. I don't remember now. I will have to have the rec- 
ords to show when it was. 

Mr. Kennedy. Early in July of 1956. Can you tell us what hap- 
pened on that in connection with the check-cashing expedition ? Did 
you fly in your plane ? 

Mr. Clancy. Would you have me tell you, or would you want the 
affidavit? Read the affidavit you have. 

Mr. Kennedy. The amount of mwiey that was involved was $10,000 ; 
is that right ? 

Mr. Clancy. That is right. No, as far as I was concerned it 
wasn't. It was $4,000 as far as I was concerned. 

Mr. Kennedy. But you had checks amounting to $10,000 on this 
plane trip, is that right? 

Mr. Clancy. I didn't. No, I didn't. 

Mr. Kennedy. Who did you go on the plane trip with ? 

Mr. Clancy. Vandewark. 

Mr. Kennedy. "\Aniat was INIr. Vandewark's position at that time? 

Mr. Clancy. Treasurer of the organization. 

Mr. Kennedy. He was the treasurer of the organization? 

Mr. Clancy. Yes, and a business representative. 

Mr. Kennedy. And you say you had $4,000 with you ? 



7576 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Clancy. Yes. 

Mr. Kennedy. How much did he have ? 

Mr. Clancy. Sis, I believe it was. 

Mr. IvENNEDY. He had six in checks ? 

Mr. Clancy. Yes. 

Mr. Kennedy. So between the 2 of you, you had $10,000; is that 
right? 

Mr. Clancy. Yes. 

Mr. Ivennedy. And that $10,000 was broken down into 5 checks? 

Mr. Clancy. Yes. 

Mr. Kennedy. And amounting to $2,000 apiece ? 

Mr. Clancy. Eight. 

Mr. Kennedy. What was the purpose of the trip ? 

Mr. Clancy. To campaign and to cash the checks, the money to 
be used in the campaign in the election. 

Mr. Kennedy. Who gave you the checks ? 

Mr. Clancy. Mr. Swanson. 

Mr. Kennedy. Mr. Swanson, tlie general manager, gave you five 
checks ? 

Mr. Clancy. No, he gave me two, I believe it was. 

Mr. Kennedy. And did you get in your airplane and fly to five 
different cities? 

Mr. Clancy. I got in the union's airplane, not mine, Bob. I don't 
own an airplane. 

Mr. Kennedy. You got in the union's airplane ? 

Mr. Clancy. That is right. 

Mr. Kennedy. And you flew to five different cities ? 

Mr. Clancy. I would have to have my logbook to tell you how 
many I actually landed in. 

(The document was handed to the witness.) 

Mr. Clancy. Seattle, Butte 

Mr. Kennedy. Give us the names of the cities you went to. 

Mr. Clancy. Seattle. 

Mr. Kennedy. What did you do when you went to Seattle ? 

Mr. Clancy. I stayed overnight. That is 3 hours and 50 minutes 
for the flight. 

Mr. Kennedy. Did you cash a check there ? 

Mr. Clancy. No, I don't think so. 

Mr. Kennedy. Did Vandewark cash a check ? 

Mr. Clancy. I don't remember whether he did or not. 

Mr. Kennedy. Tell us where you went next. 

Mr. Clancy. 7-10, Butte, Mont. The time was 2 hours 50 minutes. 

That is a pretty fast airplane. Senator. 

Senator Goldwater. And you had a good tailwind, too. 

Mr. Clancy. And it helped right along. Thank you. 

We stopped at Butte and we stayed there — I believe I was there — 
well, the record shows that I left Butte for Pierre, S. Dak. I left 
there. I was there 5 days. 

Mr. Kennedy. What did you do there ? 

Mr. Clancy. I was busy there. I fished around there. That is 
wonderful to fish there. 

Mr. Kennedy. How many times did you go fishing ? 

Mr. CLi\NCY. I don't know. I didn't go every day. But I fished 
a couple of times. In the Big Hole River, I believe they call it. 



IMPROPEiR ACTIVITIES IN THE LABOR FIELD 7577 

Mr. Kennedy. Did you cash the $2,000 there ? 

Mr. Clancy. Yes, I cashed one check, I believe, there. 

Mr. Kennedy. $2,000 ? 

Mr. Clancy. Yes. 

Mr. Kennedy. What did you do with tlie money ? 

Mr. Clancy. I put it in my pocket and went on. We are not back 
yet, you know. We are still up in Butte. 

Mr. Ivennedy. All right. 

Mr. Clancy. On the 15th 

Mr. IvENNEDY. So that we can understand this trip, what was the 
purpose of the trip ? Just to cash tlie checks ? 

Mr. Clancy. Well, then to campaign. 

Mr. Kennedy. But primarily it was to cash the checks, was it not? 

Mr. Clancy. Well, maybe it was 50-50. Probably primarily to 
cash them, yes. 

Mr. Kennedy. Why did you go to a lot of different cities to cash 
the checks ? So that it would appear that you were doing work in the 
various cities ? 

Mr. Clancy. I presume. 

Mr. I^nnedy. What ? 

Mr. Clancy. I presume it was. 

Mr. I^NNEDY. That is the reason you went ? 

Mr. Clancy. Yes. 

Mr. IvENNEDY. Mr. Clancy ? 

Mr. Clancy. Yes. 

Mr. Kennedy. Thank you. Now, where did you go after that? 

Mr. Clancy. Well, I left Butte on the 15th. I stopped in Pierre, 
S. Dak. I think I went in there for gasoline. I must have been hav- 
ing some difficulties there. I was on instruments when I went in there, 
that is right. I gassed up, got a clearance out of there, and went from 
Pierre to Minneaf)olis, 2 hours and 15 minutes. 

Mr, Kennedy. What did you do in Minneapolis ? 

Mr. Clancy. In Minneapolis? Well, I went 18 miles out of there 
and visited my mother, who is alive yet, thank God. 

And the next day I left there. 

Mr. Ivennedy. Did you cash a check in Minneapolis ? 

Mr. Clancy. I don't remember whether I cashed a check in Min- 
neapolis or not. 

Mr. Ivennj:dy. Did Vandewark cash a check in Minneapolis? 

Mr. Clancy. I don't think I seen him cash it. Wliether he did or 
not there, I am not sure, 

Mr. Kennedy. Wluit did you go to Minneapolis for, if not to cash 
the check ? To see your mother ? 

Mr. Clancy. Well, yes. When she gets up to 75 years old, you 
know, we all like to see her occasionally. That was the first time in 
quite a few years, I went up and seen her overnight while I was 
there, 

Mr. Kennedy, Then where did you go ? 

Mr. Clancy, Well, the next day, July 16, Minneapolis to Denver. 
The time was 4 hours. We stopped in Denver. 

That was direct, right across from Minneapolis to Denver. We 
stopped in Denver and the book shows I did not leave there until the 
I7th, so I evidently stayed there overnight. 

Mr. Kennedy. What did you do in Denver ? 



7578 IMPROPER ACTIVITIES m THE LABOR FIELD 

Mr. Clancy. I believe I cashed that other check there. I am not 
sure now. I would have to see the record. But I cashed two of 
them, and that is probably where I cashed that one. I am not sure. 

Mr. Kennedy. What did you do with that money ? 

Mr. Clancy. I am not to San Francisco yet. 

Mr. Kennedy. What did you do with the money after you cashed 
the check ? 

Mr. Clancy. I guess I put it in my pocket, I suppose. That would 
be the procedure. 

Mr. Kennedy. Then where did you go ? 

Mr. Clancy. Pardon me. Denver to Reno. On the lYth, Denver 
to Reno, 5 hours and 20 minutes. I was not getting any help there. 
In 5 hours and 20 minutes I went into Reno, Denever to Reno, 5 hours 
and 20 minutes. 

Mr. Kennedy. What did you do in Reno ? 

Mr. Clancy. Well, it looks like I stayed overnight there. 

Mr. Kennedy. Did Mr. Vandewark cash a check in Reno ? 

Mr. Clancy. I don't know. I don't remember. I couldn't say. 

]Mr. Kennedy. But that was the purpose of stopping in these places, 
to cash the checks, was it not? 

Mr. Clancy. Well, I don't gamble, so I probably wouldn't have 
stopped in Reno for any other purpose, unless I went in there for gas. 
I had to stop in Reno for gasoline, because I have 5 hours and 20 
minutes here, and I only have G hours and 15 minutes in the airplane, 
so I would have had to have gone in there for gasoline. But I stayed 
overnight. Why, I don't remember. 

Mr. Kennedy. Where did you go after Reno ? 

Mr. Clancy. Reno? It looks like on the 18th I dug out of there 
and went into Salt Lake City, 1 hour and 15 minutes, which is normal. 

Mr. Kennedy. How long did you stay in Salt Lake City ? 

Mr. Clancy. I mean San Francisco instead of Salt Lake City; 1 
hour and 15 minutes. 

Mr. Kennedy. What did you do when you got to San Francisco ? 

Mr. Clancy. On the 18th ? I don't remember. Probably went to — 
well, I don't remember what time I got in there, Mr. Kennedy. 

Mr. Kennedy. Mr. Clancy, you had $4,000 or approximately $4,000 
in cash on you at that time, did you not ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. You had $4,000 in cash on you at that time ? That 
is, approximately. 

Mr. Clancy. Well, I might have spent a little. I might not have 
had quite that much on me. 

Mr. Kennedy. Wliat did you do with what was left of the $4,000 ? 

Mr. Clancy. Well, what was left of the — I wouldn't say if it was 
that day or the next day, I don't remember, but myself and Brother 
Vandewark and Brother Mathews went into Brother Swanson's office 
and turned over — I believe there was all told nine thousand nine 
hundred and some dollars. 

Mr. Kennedy. About $9,900 ? 

Mr. Clancy. I know we got hell, he figured we spent too much 
money. 

Mr. Kennedy. You turned over $9,900 ? 

Mr. Clancy. We turned over $9,900 and 

Mr. Kennedy. You told me yesterday you turned over $9,500. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7579 

Mr. Clancy. Well, we spent in the neigliborliood of four hundred 
and some dollars. 

Mr. Kennedy. Then why did you say now you turned over $9,900 ? 

Mr. Clancy. I guess I got my 9's mixed up, Bob. 

Mr. Kennedy. So you turned over $9,500 ? 

Mr. Clancy. That is right, approximately. 

Mr. Kennedy. In cash? 

Mr. Clancy. Yes. 

Mr. Kennedy. Did you turn it over to Mr. Swanson ? 

Mr. Clancy. That is right. 

Mr. Kennedy. The purpose of the trip was to cash the five $2,000 
checks ; is that right ? 

Mr. Clancy. Yes, 

Mr. Kennedy. You went to the various cities in order to make it 
appear that you were doing work in these various cities for the union? 

Mr. Clancy. Yes. 

Mr. Kennedy. And you didn't want to get them all cashed in the 
city of San Francisco because that might arouse some suspicion; is 
that right ? 

Mr. Clancy. Well, they were used in our campaign money, presum- 
ably, in the election. 

Senator Curtis. Upon whom were these checks drawn ? 

Mr. Clancy. Sir? 

Senator Curtis. Upon whom were these checks drawn ? 

Mr. Clancy. On who? 

Senator Curtis. Yes. Wliose money was it ? 

Mr. Clancy. Operating Engineers Local No. 3. 

Senator Curtis. Some more of the union's money, along with the 
workers' ; is that right ? 

Mr. Clancy. It was local No. 3's money ; yes. 

Senator Curtis. Were there warrants drawn for each one of these 
checks ? 

Mr. Clancy. I don't believe there were any warrants for that ac- 
count. No ; I don't think so. 

Senator Curtis. Wlio paid the expense of the trip ? 

Mr. Clancy. Do you mean for our hotels and that stuff ? 

Senator Curtis. Yes. 

Mr. Clancy. We done it out of these moneys that we cashed. 

Senator Curtis. How was the plane expense paid ? 

Mr. Clancy. By the local. 

Senator Curtis. You took this money that belonged to the union, 
belonged to the workers, and you planned and covered several cities 
so that you could cash these checks in a way that would deceive what 
was going on. Then you gave the money to Mr. Swanson. What was 
he going to use it for ? 

Mr. Clancy. On a campaign in the election, I think. That is what I 
was told. 

Senator Curtis. Campaign for what ? 

Mr. Clancy. For the election of international officers. 

Senator Curtis. In other words, to reelect him and his crowd; is 
that right? 

Mr. Clancy. Well, it wouldn't reelect him. He didn't have any 
opposition. I think it was to reelect some other friends of his, 
probably. 



7580 IMPROPER ACTIVITIES m THE LABOR FIELD 

Senator Curtis. Had the election already been held when you made 
this trip ? 

Mr, Clancy. The nominations had been held. The ballots wasn't 
in, I don't believe. 

Mr. Kennedy. As far as local No. 3 was concerned, the election had 
already been held at the time you started out on your expedition i 

Mr. Clancy. The campaigning throughout the country, the election, 
the ballots for the international miion, I don't believe were in. 

Mr. Kennedy. But the local election there, the local election in Min- 
neapolis and in a number of other places had already been held. 

Mr. Clancy. "Were they held in Los Angeles and in all the places ? 
That I don't know, whether they were held yet or not. I don't know. 

Senator Cltitis. What I want to know is if the elections had not been 
held, this was not a lawful expenditure of the union's money, was it ? 
You had no right to take that money out of the treasury. You, of 
ftll people, the president of the union, gave it to certain people to cam- 
paign for a union office. 

You had no right to do that, did you ? 

Mr. Clancy. Well, I haven't got the records with me, but there 
might have been authorization to spend money in the election cam- 
paign. That I don't remember. 

Senator Curtis. It doesn't make any difference whether there was 
authorization in the record or not. You did not have any authority 
to do it, did you ? 

Mr. Clancy. Well, if the membership authorized it, I would. 
Wouldn't I? 

Senator Curtis. If the membership authorized spending money to 
elect a slate for which there is no opposition, the fact remains that 
you had no business to take that money out of the union and spend 
it in that way. That is the reason you traveled over the country 
to hide your procedure, isn't that right ? 

Mr. Clancy. I beg your pardon. There was opposition in the 
international election. 

Senator Curtis. Regardless of the opposition. That makes it all 
the worse. You had no business to take that money out of the union 
treasury and spend it for that purpose, did you ? 

Have you ever put that money back in the treasury? Did you, 
personally ? 

Mr. Clancy, I never personally got any of it. How would I put 
it? 

Senator Curtis, I know, but you helped somebody else get it. 

Mr. Clancy. I didn't help them get it. 

Senator Curtis, I think you did. Have you returned any of this 
other money that you helped take out of the union treasury for non- 
union purposes, and in violation of law and of the rules ? 

Mr, Clancy, What other money are you talking about, Senator? 

Senator Curtis, Well, for instance, this $35,000 from these real 
estate transactions. You were head of the union, and during your 
time these officers enriched themselves to the tune of about $58,000, 
and you buy land back from them so that the union suffers a loss 
and they are enriched. This is other people's money, but it does not 
seem to affect you at all. Your conscience does not prod you to re- 
turn this, and neither does it prod you to resign and let somebody 
run the union that will not mishandle other people's money. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7581 

If this happened in other organizations, if this happened in busi- 
ness groups, if this happened among guardians and trustees the re- 
suks would be very severe. 

I do not know why there are a few union people in the country 
that think they are immune from all the law and from ethics. 

Mr. Clancy. No. 1, Mr. Senator, in answer, if I may, Mr. Chairmany 
No. 1, I wasn't the head. I had nothing to do with the drawing out. 
No. 2, on the other question, if this was some kind of a corporation, I 
probably wouldn't be here. 

The Chairman. Well, you are here, so let's look at these checks. I 
hand you a series of 5 checks, dated July 6, 1956, in the amount of $2,000 
each, drawn by V. S. Swanson, P. PI Vandewark, and C. F. Mathews, 
on the account of local No. 3. Two of the checks are made payable to 
Pat Clancy; three of them are made payable to P. E. Vandework, all 
drawn on the American Trust Co., San Francisco, Calif. The checks 
are numbered 325, 326, 327, 328, and 329. I ask you to examine these 
photostatic copies and state if you identify those checks as the photo- 
static copies of the checks totaling $1,000 that you and Vandewark 
went out to cash on this tour. 

(The documents were handed to the witness.) 

The Chairman. It is $10,000 that you and Mr. Vandewark went out 
to cash on this tour. 

Mr. Clancy. These two that I cash, I identify them, sir. 

The Chairman. You identify those ? 

Mr. Clancy. Yes. 

The Chairman. You do not identify the others ? 

Mr. Clancy. The others I have never had, and I do not know 
whe^^her they are or not. I will identify mine, the ones I cashed. 

The Chairman. Your two will be made exhibits 22 and 22A, for the 
record. 

(The documents referred to were marked "Exhibits Nos. 22 and 22A" 
for reference and will be found in the appendix on pp. 7858-7859.) 

The Chairman. Proceed. 

Mr. Kennedy. In answer to Senator Curtis' question, you said that 
this was authorized ? 

Mr. Clancy. I said I thought it was, I believe, to get the record 
straight. 

Mr. I^NNEDY. You said you thought it was authorized ? 

Mr. Clancy. I believe it was. I thought it was. I could be wrong. 
I believe it was. 

The Chairman. Could you identify a copy of the minutes of your 
meeting of your local on July 3, 1956, 3 days before the checks were 
drawn ? 

Mr. Clancy. Sir, I don't write the minutes. 

The Chairman. I present them to you, and ask if, as president of 
the local, you can identify them, and if you are familiar with them. 

( The documents were handed to the witness. ) 

Mr. Kennedy. Mr. Clancy, do you see anywhere in there that this 
$10,000 was authorized ? 

Mr. Clancy. No, I don't see anything in this. I am not familiar 
with the minutes. I don't write them. 

The Chairman. Do you identify that as the minutes of your meet- 
ing? 



7582 IMPROPER ACTR^ITIE'S IN" THE LABOR FIELD 

Mr. Clancy. That is the first time I have ever seen them. I don't 
write the minutes. 

The Chairman. You don't write the miuntes, you have somebody 
else to do that, but as president, you have some responsibility to know 
what is going on. Wliether you accept it or not, you have it. 

Mr. Clancy. The Secretary takes and writes the minutes of the 
organization, and keeps them. 

The Chairman. I understand, but you have some responsibility to 
see that they are kept correctly. I present you another photostatic 
copy of minutes of the meeting of July 3, 1956. It seems a double set 
of minutes were kept. I will ask you to see if you identify that set. 

(The document was handed to the witness. ) 

Mr. Clancy. It is the first time I have ever seen them. 

The Chairman. Did they keep a double set of minutes in your local, 
one for the officers and one for the members ? 

Mr. Clancy. Not to my knowledge. I don't have anything to do 
with the minutes of the organization, sir. 

The Chairman. Apparently you don't have anything to do with any 
of it, where you should have, as president, and where your responsi- 
bility attaches. 

Mr. Clancy. You might be absolutely right there. Senator. 

The Chairman. I believe I am. 

Mr. Kennedy. Mr. Chairman, Iwould like to point out that the 
fraudulent minutes, the minutes that Avere not kept by the secretary, 
have an item in there which authorizes the payment of the $10,000. 

The Chairman. Who procured these minutes ? 

Mr. Gordon. I did. 

The Chairman. Take the witness chair. 

TESTIMONY OF JOSEPH I. GOEDON— Resumed 

The Chairman. Mr. Gordon, did you examine the minutes of the 
meeting of July 3, 1956, of Local union 3 i 

Mr. Gordon. Yes, I did, sir. 

The Chairman. I hand you two docmnents here, both purporting 

to be the minutes of that meeting of local union 3, on July 3, 1956. For 

purposes of identification, one is marked "A" and the other is marked 

B." I will ask you to state if you identify those minutes, the two sets 

of minutes, and how you procured them, where you found them. 

( The documents were handed to the witness. ) 

Mr. Gordon. Yes, I can identify these minutes. 

The Chairman. Did you procure them ? 

Mr. Gordon. Yes. I procured them from the recording secretary's 
office. 

The Chairman. From the recording secretary's office of local No. 3 ? 

Mr. Gordon. Yes, sir. 

The Chairman. Explain the difference in them. 

Mr. Gordon. Well, the set that I have 

The Chairman. Those two may be made exhibits. The one marked 
"A" may be made exhibit No. 23, and the other one may be made 
exhibit No. 24, the one marked "B." 

(The documents referred to were marked "Exhibits Nos. 23 and 24" 
for reference and will be found in the appendix on pp. 7860-7863.) 



IMPROPEIR ACTIVITIES IN THE LABOR FIELD 7583 

The Chairman. Proceed. 

Mr. Gordon. The set that I have identified as A are the true minutes. 

The ChairmzVn. Those are the true minutes ? 

Mr. Gordon. Yes. 

The Chairman. What do you mean by true minutes ? 

Mr, Gordon. They were shown to me as being the original minutes. 

The Chairman. The one marked "A" w^as shown to you as being 
the original minutes by the recording secretary ? 

Mr. Gordon. Yes. And confirmed by tlie secretary to the recording 
secretary. 

The Chairman. And confirmed by the secretary to the recording 
secretary ^ 

Mr. Gordon. She types the minutes. 

The Chairman. As being tlie official minutes of that meeting, they 
have been confirmed ? 

Mr. Gordon. Yes, sir. 

The Chairman. All right. 

Mr, Gordon. The second set, which I have identified as B, are the 
minutes that w^ere forged. 

The Chairman. Forged minutes ? 

Mr. Gordon. Yes, by adding an additional paragraph to it, insert- 
ing an additional paragraph. 

The Chairman. What do you mean by forged? Do you mean it 
was changed or added to ? 

Mr. Gordon. They were altered. 

The Chairman. It was altered ? 

Mr. Gordon. Yes, by making an addition to the original minutes. 

The Chairman. What does the one marked "A," that you have 
identified, which is exhibit 23, show with respect to any $10,000 
authorization for the spending of $10,000 ? 

Mr. Gordon. I see no authorization for the spending of $10,000 
in A. 

The Chairman. There is no authorization for the spending of 
$10,000 in exhibit A ? 

Mr. Gordon. That is correct. 

The Chairman. What does it show in B ? 

Mr. Gordon. I will read it : 

Regularly moved and seconded that $10,000 be allocated from the defense 
fund to be used in the international election, and that Brothers Clancy and 
Vaudewark be directed to call on all of the locals they can reach in the time left 
before election ; and that they be further directed to offer all the assistance to 
the locals in this election. 

They have one more word, "Carried." 

The Chairman. How do we know which are the true minutes ? 
Mr. Gordon. The original set, as I examined them, appeared to me 
to be the same typing as all the other sets. I looked through many, 
many minutes, to see if it was the same typewriter. In this second set, 
even as we duplicated it, it is easy to see that it is reproduced on a 
dijgnatot typewriter. 

' holdin^^iKMAN. Reproduced on a different typew^riter with this 
r. CLANCYtatement added to it ? 
and he wai^Yes. 

\ Otherwise, are the minutes identical ? 

243— 58— pt. 19 



7584 IMPROPER ACTIVITIES IN" THE LABOR FIELD 

Mr. Gordon. Identical. 

The Chairman. Otherwise they are identical. But after the meet- 
ing, apparently, reference to the $10,000 was either deleted from the 
set or a new set of minutes was written up, and it was added. 

Mr. Gordon. I want to make one little correction, Mr. Chairman. I 
noted at the bottom of the original set of minutes there were the ini- 
tials "CFM," whom I know to be Clarence F. Mathews, recording 
secretary. 

The Chairman. That was on A? 

Mr. Gordon. On A, the original minutes. 

The Chairman. He had approved A as being the correct minutes ? 

Mr. Gordon. Yes, sir. 

The Chairman. It is only a one-sheet record of minutes; is that 
correct ? 

Mr. Gordon. It is a two-sheet record. 

The Chairman. All right. Is there anything else? Let me ask you 
this question, Mr. Gordon — well, I will hold that. 

TESTIMONY OF PATRICK W. CLANCY— Resumed 

Mr. Kennedy. Mr. Clancy, why did you participate in this fraud 
on your union ? 

Mr. Clancy. What fraud ? 

Mr. Kennedy. You do not see that there was a fraud on the union ? 
You do not see that at all? That is, your taking these checks, this 
$10,000, and flying around the country in order to cash them, and 
make it appear to the membership that 3^ou were doing work in taking 
this money and cashing it ? 

Mr. Clancy. I was just working there, Mr. Kennedy. 

Mr. Kennedy. But you didn't have to get into the plane and fly. 

Mr. Clancy. I was working for the local union. 

Mr. Ejinnedy. You don't have to do anything dishonest, Mr. 
Clancy, by the mere fact that you were working for the union. 

Mr. Clancy. How did I know that there was going to be anything 
dishonest ? You haven't proved yet that there was anything dishonest 
about it. 

Mr. Kennedy. According to your testimony you said it was dis- 
honest. You said the reason you went around there was to cash 
checks in various places so that it would appear that you were doing 
work in those various areas. 

Mr. Clancy. I beg your pardon, Mr. Kennedy. I didn't under- 
stand that it had been established yet how Mr. Swanson used that,A 
money that we turned over to him. . ^^ 

Mr. Kennedy. You say that you turned it over to him. Accord^cp \ ^ 
to the information we have, this money came into your possessi '^% ^ 
you got the money. Now you say you turned it over to somel^- ^ ^O 
else. ^"l)'^ A I 

What evidence do you have of that ? >. ^ '^'^^ 

Mr. Clancy. I have an affidavit with two witnesses that^j-^^^^j'^^'^ '-^ 
give it to him. ^y ^^^ made 

Mr. Ej:nnedy. Yes; but the other people participate"" " 
thing. Mr. Vandewark also went around there airj^^g 03 ^-^-^^ 24" 
checks. P.V860-78G3.) 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7585 

The Chairman. What did Mr. Swanson say about it? Does he 
acknowledge that you gave him the money ? 

Mr. Clancy. I suppose he will. I can't answer for him. He is 
quite capable of answering for himself. 

Mr. Kennedy. What did he do with the $10,000 ? 

Mr. Clancy. It was supposedly to be used — I beg your pardon. 
It wasn't quite 10. 

Mr. Kennedy. Nine thousand five hundred dollars ? 

Mr. Clancy. It is less than that. We will 

The Chairman. We will not quibble over the difference between 
$10,000 and $9,500 and concede that $500 was spent. 

Mr. Kennedy. What did he do with it ? 

Mr. Clancy. I don't know exactly. I didn't see it. As far as I 
know, he spent it in the election. 

Mr. Kennedy. How do you know what he did with it ? 

Mr. Clancy. I was told, that is all. 

Mr. Kennedy. Mr. Clancy, don't you understand that you had a 
responsibility to the membership? Whether you kept the money or 
not, you still had a responsibility to the membership regarding their 
funds. Don't you understand that at all ? 

You don't understand that one single bit, Mr. Clancy ? 

Senator Goldwater. How would Mr. Swanson use $10,000 in the 
election of officers for your local ? 

Mr. Clancy. It wasn't in the officers for the local, Senator Gold- 
water. 

Senator Goldwater. Well, then, in the international, how would 
he do it? 

Mr. Clancy. I don't want to go into any elaboration on this, but 
there was a time when there were fellows running for international 
office that had automobiles and hired men to go around through the 
various areas campaigning, something like a politican campaign. 
He gets out in the country and meets the grassroots people. Well, that 
is what they have to do. 

Senator Goldwater. Let me ask you : Did you pay the expenses of 
all the candidates for office ? 

Mr. Clancy. Did who ? Did we ? 

Senator Goldwater. Yes. 

Mr. Clancy. Who Mr. Swanson paid 

Senator Goldwater. Let me put it another way. Let's say there 
was an opposition ticket, and both tickets were members of your miion. 
Did you pay both tickets' expenses or just one ? 

Mr. Clancy. Well, I believe there was only 1 or 2 men involved, 
and I believe that is where it was spent. 

Senator Goldwater. Were these the handpicked candidates of the 
imion? 

Mr. Clancy. I don't understand. 

Senator Goldwater. What I said, handpicked candidates. 

Mr. Clancy. From the union or the international ? 

Senator Goldwater. From the union, the international, whoever 
' holding the election. I understand it was the international, 
r. Clancy. It was an international election. There was opposi- 
and he was backing one of the candidates. Or more. One or 

243— 58— pt. 19 6 



7586 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Senator Goldwater. Then the union was spending money to support 
one candidate but not the other ? 

Mr. Clancy. He was, yes. 

Senator Goldwater. Did you ask your membership if you could 
back this one candidate with their dues money ? 

Mr. Clancy. I don't remember whether they said or not. If they 
could have been — I don't know. It could have been done. I don't 
remember. 

Senator Goldwater. It doesn't show, I am informed, that you asked 
the membership. Is that customary in your international for the 
officers to pick the candidates and then take dues money and back 
them ? 

Mr. Clancy. I don't know. The international doesn't take any dues 
money to back anybody in the international union. 

Senator Goldwater. You just admitted that you do. You said the 
$10,000 went for politics, that it went to pay car expenses and traveling 
expenses of candidates. If that is not backing, I do not know what 
it is. 

Mr. Clancy. Well, it didn't come from the international union, sir. 

Senator Goldwater. It came from union funds, it came from union 
funds, it came from members. 

Mr. Clancy. From the local union, not the international. 

Senator Goldwater. It came from dues. I don't care whether you 
got it out of the general fund of the international, or the general funds 
of the local. Is that the customary thing to do in your local or in 
your international ? 

Mr. Clancy. That I don't know. 

Senator Goldwater. You ought to know that. You have been 
president of this thing since 1941. Do they back you with dues money ? 
Let's say when you are running for election, do you get your expense 
money out of the union dues ? 

Mr. Clancy. Well, no. I am working as a business representative 
for the union. Sometimes I have to really hustle. 

Senator Goldwater. There is no question about that. That is evi- 
dent. But do you have your expenses paid during the course of the 
campaign, with union funds ? 

Mr. Clancy. My expenses paid in the course of the campaign ? 

Senator Goldwater. That is right. You are running for president, 
and you have your car, you have expenses that you incur in the course 
of running. Who pays those expenses i 

Mr. Clancy. Senator Goldwater, when I am working as an agent 
in the district, taking care of tlie wants of the membership, working 
for them, and I contact tliem, naturally I will do tlie same as any other 
man running for office. I will say "Brother, when election comes up, 
give me a vote," and probably shake hands with him. 

Senator Goldwater. I am not talking about that. I am talking 
about who pays your expenses Avhen you are doing this, when you are 
out campaigning, not when you are out doing your business. 

Mr. Clancy. I don't have any other times to campaign, except while 
I am working as a business agent, as I see, as I go around and meet 
the different boys. 

Senator Goldwater. Then any extra expenses you would have 
would come out of the union funds ? 

Mr. Clancy. There wouldn't be any extra expenses. 



IMPROPEK ACTIVITIES IN THE LABOR FIELD 7587 

Senator Goldwater, I have one more question. Do the union mem- 
bers ever have a chance to run anybody against you ? 

Mr. Clancy. Yes, Mr. Goldwater, they have an opportunity when 
the nomination of officers occurs. Any member of the 22,000 is eligible 
to be nominated and run against me. 

Senator Goldwater. Is that done in a convention ? 

Mr. Clancy. That is done in our local union. The local union 
doesn't hold a convention. It is done at an advertised meeting, which 
all the members know, it is an advertised meeting when the nomina- 
tions are held, and the election is held then, say, next month. 

Senator Goldwater. How many times since 1941 has someone run 
against you ? 

Mr. Clancy. I don't remember, Senator Goldwater, because our 
first few terms was for 2 years. Then the membership voted to give 
us a 4-year term which, I believe, is — well, I think it is one term or 
two we have had a 4-year term. I don't remember how many times 
I have had no opposition. But, frankly, sir, I would like to have 
opposition, because it stirs up interest in the election and gets the boys 
out to vote. 

Senator Goldwater. Then you see nothing wrong with taking 
$10,000 of union dues to back candidates of your particular choosing, 
regardless of the wishes of the membership ? 

Mr. Clancy. No. ij I didn't take $10,000 to back a candidate of my 
wishing. 

Senator Goldwater. Well, Mr. Swanson got $10,000 or approxi- 
mately $10,000 from you fellows who traveled around the United States 
cashing checks, and you say it was for the i)urpose of campaign ex- 
penses. You said that. 

You have admitted that. Do you think that is right, whether you 
did it or Mr. Swanson did it? You can answer that question. 

Mr. Clancy. Well, I don't know. Senator, whether it would be or 
not. I would have to think of it. It all depends. 

Senator Goldwater. You ought to know that. You are a grown 
man. You know what right and wrong are. 

Mr. Clancy. That is right. 

Senator Goldwater. Is right or wrong ? 

Mr. Clancy. Well, I don't think I know at the present minute. 

Senator Goldwater. Do you think you might find out ? 

Mr. Clancy. Yes. 

Senator Goldwater. Wlien you find out, would you let me know ? 

Mr. Clancy. I will. It might be helpful in other campaigns that 
I run in. If I run in a campaign again for election, it might be help- 
ful, what I think about it. 

Senator Curtis. If it was right, how come you didn't cash the checks 
right there in San Francisco ? 

Mr. Clancy. It was to campaign. 

The Chairman. You were campaigning to get this money without 
disclosing the fact that you had taken it from the local, that is the 
truth about it, isn't it ? 

That was the campaign and that was the whole mission? 

Mr. Clancy. I wouldn't say that. Senator. I wouldn't say that at 
all. 

The Chairman. Except that you didn't cover it up sufficiently so 
that it couldn't be discovered. There could not be an explanation of 



7588 IMPROPER ACTrVITIEtS EST THE LABOR FIELD 

taking a plane, and flying aronnd to different cities, cashing $2,000 
checks, where yon conld walk down to the bank and cash them, if 
there wasn't something concealed about the whole transaction. That 
is obvious. 

Senator Curtis. Was this man that the money was turned over to, 
$9,500, one of the same individuals that profited in the real-estate 
transaction ? 

Mr. Kennedy. Again, it was Mr. Clancy who said he turned it 
over. Actually, it was Mr. Clancy who drew the money and took the 
plane. Whether he turned it over remains to be seen. 

Senator Curtis. There is no evidence produced that it was even 
spent for campaigning for office. 

Mr. Kennedy. Wliere they went, Senator, the elections were al- 
ready over, and the ballots had to be in within 5 or 6 days after they 
got back to San Francisco. The election had been over before they 
left in local No. 3, in San Francisco. 

Senator Curtis. And they turned the money over after they finished 
the trip, the $9,500 to be used in the campaign. 

Mr. Kennedy. That is right. 

Senator Curtis. It looks like Mr. Clancy, you helped somebody get 
some money out of the union that was not even used for campaign 
expenses. 

Mr. Kennedy. Would he identify this check, Mr. Chairman ? 

The Chairman. I present you another check dated March 25, 1956, 
signed by P. E. Vandewark, E. F. Mathews, and Victor S. Swanson, 
on the funds of the Operating Engineers Local No. 3, and drawn on 
the American Trust Co., San Francisco, Calif., and made payable to 
American Trust Co., in the amount of $10,000. It is check No. 321. 
I ask you to examine this check and state if you identify it. 

(The document was handed to the witness.) 

Mr. Clancy. I can't say that I ever seen it before, Senator. 

(Members of the committee present at this point were Senators 
McClellan, Goldwater, and Curtis.) 

The Chairman. You cannot say that you ever saw it before ? 

Mr. Clancy. No. 

Mr. Kennedy. Did you know of a $10,000 check that was cashed 
in order to "promote the pension fund" ? 

Mr. Clancy. Pardon me. Let me see the date of that check? It 
is March 25 of 1956. That must have been when the delegates for the 
convention were in Chicago. That is probably what you are referring 
to. 

If you will tell me those things, Mr. Kennedy, it would refresh 
my memory. That is probably what it was, Mr. Kennedy. 

Mr. Kennedy. What was the $10,000 for? 

Mr. Ci^NCY. I don't know what that was for. 

Mr. Kennedy. Did you have a $10,000 check that was cashed in 
order to j^romote the pension fund? Do you know anything about 
that? 

Mr. Clancy. There was some money drawn. 

Mr. Kennedy. Did you receive any mone}^ in order to promote the 
pension fund? 

Mv. Ci-VNCY. I received some money in Chicago as expenses and 
such at the convention. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7589 

Now that was probably or that might have come from that, I don't 
know. 

Mr. Kennedy. You received your regular expenses while you were 
in Chicago. You got your hotel bill paid, and any of your other 
regular expenses ; is that correct ? 

Mr. Clancy. And expenses paid ; yes, 

Mr. Kennedy. And your transportation, and you were paid by the 
union ; were you not ? 

Mr. Clancy. Yes. 

Mr. I^NNEDY. In addition to that, did you receive any other monies 
while in Chicago or prior to going to Chicago, which was to be used 
to promote the pension fund ? 

Mr. Clancy. Yes, Mr. Kennedy. I was in Chicago, I believe the 
records will show. 

Mr. Kennedy. Just answer the questions, Mr. Clancy. 

Mr. Clancy. About 2 weeks before the convention, I believe, that 
I got three or four hundred dollars, a check to cover my additional 
expenses. 

Mr. Kennedy, "\^^lat was the purpose of that? 

Mr. Clancy. In line with my expenses in Chicago. 

Mr. Kennedy. Now you got your regular expenses, Mr. Clancy, and 
this is not for your regular expenses. I am asking you if you got 
anything above your regular expenses for any special purpose while 
in Chicago ? 

Mr. Clancy. Like entertaining and that stuff; yes; I believe I did, 

Mr. Kennedy. What was that for ? 

Mr. Clancy. Entertaining and champagne. I guess you have got 
a word "lobbying," maybe, for it. 

Mr. Kennedy. Wliat were you lobbying for ? 

Mr. Clancy. To get a pension. I am getting old. 

Mr. KJENNEDY. How much money did you get for lobbying for the 
pension fund ? 

Mr. Clancy. I believe that I got a check for $400. I am not sure 
now, but I believe it was. 

Mr. Kennedy. Is that all that you received ? 

Mr. Clancy. I don't remember now, and I believe it was. I do 
not remember. 

Mr. Kennedy. For your other regular expenses, did you submit 
vouchers showing how much money you had used and spent for 
entertainment, for dinner, for hotels, and so on? Did you submit 
regular vouchers for that ? 

Mr. Clancy. I don't believe so. I don't think that I did. 

Mr. Kennedy. You just got your regular expenses ? 

Mr. Clancy. I got expenses. 

Mr. IvENNEDY. Without submitting any vouchers at all ? 

Mr. Clancy. Extra expenses. 

Mr. Kennedy. This is about this extra $400. What about your 
regular expenses, Mr. Clancy ? 

Mr. Clancy. Thank you, I know that was $400, because that re- 
freshed my memory, and I thought that is what it was. Thank you. 
Bob. 

Mr. Kennedy. Wliat about your regular expenses, Mr. Clancy? 
Did you submit some vouchers for that ? 



7590 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr, Clancy. I may and I may not, and I don't remember. It has 
been quite a while back. 

Mr, Kennedy. But you got $400 above your regular expenses in 
order to promote the pension fund ? 

Mr. Clancy. I am sorry, Mr. Chairman, the record will show that 
I was there a couple of weeks early, and I was, let us say I was cam- 
paigning to get a pension. 

Mr. Kennedy. Who were you campaigning with ? 

Mr. Clancy. Well, the delegates that were coming in, various 
delegates. 

Mr. Kennedy. Did you find much opposition to the pension among 
the delegates ? 

Mr. Clancy. Yes ; there was some. There was some. 

Mr. Kennedy. What was the final vote on the pension? 

Mr. Clancy, I couldn't tell you now, and I don't remember. 

Mr. Kennedy. What sort of lobbying work did you do among the 
delegates ? 

Mr. Clancy. Well, I would maybe take 1 or 2 out, and take them 
to dinner, and the ones that were in opposition or maybe wanted 
a pension that I believe we wouldn't be able to get or get a reason- 
able pension, a sensible one, let us put it that way. 

Mr. Kennedy. Did your local No. 3 authorize a sum of money to 
be spent in order to promote the pension ? 

Mr. Clancy. I believe they did. 

Mr. Kennedy. You are incredible, Mr. Clancy. 

Mr. Clancy. Why do you say that ? 

Mr. Kennedy. You just do not know anything or you act as if you 
didn't know anything. 

Mr. Clancy. AVell, they have always said I was a stupid Irislmian, 
and maybe I am. Bob. 

Mr. Kennedy. Do you know whether the union authorized $10,000 
in order to promote the pension fund ? 

That is your local, Mr. Clancy's local, of which Mr. Clancy is 
president. 

Mr, Clancy. Don't call it my local. I don't own it, and I just 
work there, Mr. Kennedy. I don't own it. 

The Chairman. If that is not your local, you do not have one, 
do you ? 

Mr. Clancy. I just work there. 

The Chairman. Then you do not have any local, if that is not 
your local. 

Mr. Clancy. I don't own it, sir. 

The Chairman. Apparently a few of you own it. 

Mr. Clancy. I don't, sir. 

Mr. Kennedy. Did they authorize $10,000 to be used to promote 
thenen'jion fund? 

Mr. Clancy. At this moment, I don't remember. I think so, but 
I don't remember absolutely. 

Mr. Kennedy. This is 1956, and this is not very long ago. 

You do not remember that? You do not remember $10,000? Is 
that your testimony, Mr. Clancy ? Either you are stupid or dishonest, 
IMr. Clancy. You have to be, because this is $10,000 from a union 
of which you were president. 



IMPROPER ACTIVITIES. IN THE LABOR FIELD 7591 

Mr. Clancy. I am not dishonest, Mr. Kennedy. I am not an at- 
torney, and there are lots of words that I don't quite understand. 

The Chairman. You understand the word "check," do you not? 

Mr. Clancy. Yes. 

The Chairman. You understand the word "check" ? 

Mr. Clancy. Yes. 

The Chairman. And you understand what you mean by "author- 
izing an expenditure", do you not ? 

Mr. Clancy. Sir, I am wondering if the local union authorized the 
expenditures of moneys to forward the pension plan. I am not sure 
if they authorized any certain amount. We have attorneys here wait- 
ing to hook a man if he makes one lousy bad word, and they will say 
"Pie said this" and "He said that," and I am not an attorney. I haven't 
money enough to hire a counsel to sit here. 

The Chairman. You do not need an attorney to tell us what you 
know. 

Mr. Clancy. It seems like you do. 

The Chairman. What would he know about it that you would not 
know ? 

Mr. Clancy. You have got to weigh your words, and I don't know 
whether you are an attorney or not, but you have got to weigh your 
words, and I can't weigh them. 

The Chairman. This is not a weighty word, to say that your union 
authorized the expenditure of $10,000 to promote the pension fund. 
What is weighty about that ? 

Mr. Clancy. I said that I didn't recall whether they did that, and 
Mr. Kennedy tells me that he thinks I am stupid, 

Mr. Kennedy, I gave you an alternative, 

Mr. Clancy, Thank you, I appreciate that, Mr. Kennedy. I ap- 
preciate that. 

Mr. Kennedy. Did you have any discussion about promoting the 
pension fund? 

Mr. Clancy. We have been talking about a pension ever since I was 
a boy. 

Mr. Kennedy. Did you have any discussion about using union 
money in order to promote the pension fund? 

Mr. Clancy, We probably did, because we were all interested in a 
pension, which every workingman is. 

The Chairman. Mr. Clancy, this is just the year before last, and 
you testified about your duties as president, to preside at the meetings. 
Who else would know better than the president who is presiding at the 
meetings as to what motions were made and what w^as discussed at 
that meeting. 

According to the minutes we have here, you were presiding at the 
meeting on March 14, 1956, less than 2 years' ago. 

Mr. Clancy. The only question, sir, in my mind is this: I know 
that there was discussion regarding a pension. Now, the only ques- 
tion in my mind is whether there was a motion made to take a certain 
amount of money to forward the pension or whether it was just for 
moneys to be drawn to forward a pension. I don't know which. 

Mr. Kennedy. You remember there was some discussion? 

Mr. Clancy. There has been discussion for pensions for a long 
time, Mr. Kennedy, at various meetings. There has been discussion, 
and, in fact, there was discussion at our last meeting about a pension. 



7592 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Kennedy. Was it decided or was there a motion made that you 
should use the funds of the union to promote the pension fund? 

Mr. Clancy. I don't remember all of the motions that have been 
made. 

Mr. Kennedy. How much money did you receive for promoting 
the pension fund ? 

Mr. Clancy. I believe there is a check for $400. 

Mr. Ivennedy. Did you receive any other money in addition to 
that? 

Mr. Clancy. I don't remember if I did. Now, I could have, but 
I don't remember. 

Mr. Ivennedy. Do you think it is possible that you might have re- 
ceived a little bit more than that ? 

Mr. Clancy. I don't know. 

Mr. Kennedy. You do not Imow ? 

Mr. Clancy. No, I don't remember whether I did or not. 

The Chairman. Do you identify this check as the $400 check that 
you received for promoting the pension fund ? 

(A document was handed to the witness. ) 

Mr. Clancy. Yes, it is. 

The Chairman. That check may be made exhibit No. 25. 

(Document referred to was marked "Exhibit No. 25" for reference 
and will be found in the appendix on p. 78G4.) 

Mr. Kennedy. You do not remember receiving any other moneys 
from that ? 

ISIr. Clancy. I don't remember, Bob, no. 

Mr. I^NNEDY. Wlien you were in San Francisco, you did not re- 
ceive another $1,000 ? 

Mr. Clancy. Not that I remember. 

Mr. Kennedy. Did you receive 2 of the $500 cashier's checks made 
out to Victor Swanson, and cashed by you, on April 25, 1956 ? 

Mr. Clancy. Not that I remember of now. 

Mr. Kjjnnedy. And one on April 25, 1956, and another on April 30, 
1956? 

Mr. Clancy. I don't remember if I did, Mr. Kennedy. I don't 
remember. I could have, but I don't remember them. 

Mr. Kennedy. I want to ask you about one other matter. Do you 
know what a check for $10,000 — this is the third one, on January 24, 
1955 — -^as used for? Do you know what the "construction stiffs" 
are? 

Mr. Clancy. Oh, yes. 

Mr. Kennedy. What are the "construction stiffs" ? 

Mr. Clancy. Well, that was an organization throughout Cali- 
fornia. 

Mr. KJENNEDY. What were they trying to promote? What were 
they trying to do and who were they criticizing ? 

Mr. Clancy. Well, they were criticizing practically everyone. 

Mr. Kennedy. All of the union officials of local No. 3 ? 

Mr. CLiVNCY. Yes, they all gave us honorable mention occasionally. 

Mr. Ivennedy. They produced a newspaper, did they ? 

Mr. Clancy. Well, not exactly a newspaper. I wouldn't call it 
that. 

Mr. Kennedy. A mimeographed sheet ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7593 

Mr. Clancy. Yes, and I believe that Mr. Salinger has some. 

Mr. Kennedy. And it was called the Construction Stiffs News? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. They were very critical of the union officials that 
were operating Local No. 3, of the Operating Engineers^, is that right? 

Mr. Clancy. Well, I believe they criticized me a little bit, occa- 
sionally, and not too much. 

Mr. Kennedy. They were the rank and file members of the union ? 

Mr. Clancy. That is right. 

Mr. IvENNEDY. And they were critical of your leadership, that you 
and the other officials were giving to the local ? 

Mr. Clancy. Well, not of m}^ leadership. 

Mr. Kennedy. They were critical of you among others ? 

Mr. Clancy. Not very often, I don't think. 

Mr. Kennedy. But occasionally they were critical of Mr. Clancy ? 

Mr. Clancy. They took a shot at me maybe once in a while, a little 
one, you know, just to keep it interesting. 

Mr. Kennedy. Did you think it was necessary to try to investigate 
them ? 

Mr. Clancy. Well, yes, I believe we did at one time. 

Mr. Kennedy. So what did you decide to do then ? 

Mr. Clancy. There was a story that they were mixed with 
Commies and a few more things, and I believe that that entered 
into it. 

Mr. Kennedy. You wanted to try to get the Communists? 

Mr. Clancy. No, that entered into the picture, I believe, that they 
were. Now, whether they were or not, I don't Imow. 

Mr. Kennedy. What did you do ? 

Mr. Clancy. Well, we had an investigation, and in investigating 
them our business manager 

Mr. Kennedy. Did you all kick in a little of your own personal 
money to investigate them ? 

Mr. Clancy. I don't remember whether I did or not, any personal 
money. 

Mr. Kennedy. You didn't use any union money, did you? You 
wouldn't do anything like that ? 

Mr. Clancy. If they were after the organization, why I would 
presume that the organization would. 

Mr. Kennedy. About $10,000 ? 

Mr. Clancy. I don't remember what it was now, I could not say. 

Mr. Kennedy. I cannot hear you very well. 

Mr. Clancy. I was trying to think. Pardon me, I was kind of think- 
ing out loud, Mr. Kennedy. 

Mr. Kennedy. Did the leadership authorize a drawing of $10,000 
on January 24, 1955, in order to investigate and to fight the "construc- 
tion stiffs""? 

Do you remember that, Mr. Clancy ? 

Mr. CivVNCY. I believe that our business manager did. He took care 
of those matters. 

Mr. Kennedy. Who was that ? 

Mr. Clancy. Victor S. Swanson. 

Mr. Kennedy. This is Mr. Swanson again. 



7594 IMPROPER ACTIVITIES E^ THE LABOR FIELD 

Mr. Clancy. Yes, sir ; I am awfully sorry. You took me on yester- 
day for bothering him and I want to apologize for having to use his 
name again. 

The Chairman. I did not understand you. 

Mr. Clancy. I said I wanted to apologize for having to use his 
name again today. 

The Chairman. Wlio took you on yesterday ? 

Mr. Clancy. Bob did not like it mentioned yesterday, and he said 
I was blaming him, and I am awfully sorry. 

The Chairman. You are not blaming Swanson then. 

Mr. Clancy. No, but they said I was, and so I am awfully sorry 
I had to mention him again today. 

The Chairman. Any time you feel that you should mention him, 
it will be all right. 

Mr. Clancy. Thank you. Senator. 

Mr. Kennedy. Tell me this : Of the payment of $10,000 that was 
authorized under your leadership or under the direction of Mr. Swan- 
son, did you receive any of that money ? 

Mr. Clancy. Not that I know of. 

Mr. Kennedy. Now you would know. Are we going to go through 
this again ? 

Mr. Ci^NCY. Let us say "No ; I did not." 

Mr. Kennedy. You did not receive any of that money ? 

Mr. Clancy. Not that I know of, I did not receive any of it. 

Mr. Kennedy. You would know whether you received any. Did 
you receive any? Mr. Clancy, did you receive any of that money? 
What is your answer ? 

Mr. Clancy. How do you mean it? Did I receive it for my own 
use, or to use it ? 

Mr. Kennedy, Either way. 

Did you receive it for your own use or to use it ? 

Mr. Clancy. I don't remember now whether I did or not. 

Mr. Kennedy. Now, Mr. Clancy, this is a lot of money, this is union 
members' dues, and did you receive any of the money for your own 
use or for any other use ? 

Mr. Clancy. I don't remember whether I did or not, Mr. Kennedy. 
Now, I might have received $35 or $10 to have done something or to 
go and get a letter written or something else, and I am not sure. 

Mr. Kennedy. Ten dollars to do what ? What were you going to do 
with the $10? 

Mr. Clancy. I never know, buy a bulletin or stamps or something, 
and you never know. 

Mr. Kennedy. Wliat were you going to buy the postage stamps for ? 

Mr. Clancy. If you would mail letters out. 

Mr. Kennedy. For the investigation of the "construction stiffs" ? 

Mr. Clancy. Yes, sir. 

Mr. Kennedy. To whom were you going to mail the letters ? 

Mr. Clancy. They were investigating, and supposed to be investi- 
gating. 

Mr. Kennedy. To whom were you mailing letters ? 

Mr. Clancy. Well, I don't know. I just say it could have been. I 
am not saying that it was, but it could have been. 

Mr. Kennedy. Other than the $10 to buy the postage stamps, did 
you receive any other money ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7595 

Mr. Clancy. No ; not tliat I know of. 

Mr. Kennedy. You did not ? 

Mr. Clancy. Not that I know of. 

Mr. Kennedy. You would know, and nobody would know better 
than Mr. Clancy whether he received any money or not. 

Mr. Clancy. Not that I know of . 

Mr. Kennedy. You cannot tell us "yes" or "no" on it ? 

Did you do any work against the "construction stiffs" ? 

Mr. Clancy. Yes ; I believe there was some work done. 

Mr. Kennedy. What did you do ? 

Mr. Clancy. Well, campaigning against them, let us put it that 
way. 

Mr. Kennedy. How did you campaign against them ? 

Mr. Clancy. I went out to spread the gospel. 

Mr. Kennedy. How did you do that ? 

Mr. Clancy. Among the membership. 

Mr. Kennedy. Would that cost money, Mr. Clancy ? 

Mr. Clancy. It probably did. 

Mr. Kennedy. Did you get paid for doing that ? 

Mr. Clancy. Well, I am working for the local. 

Mr. Kennedy. Did you get extra money for doing that ? 

Mr. Clancy. Not that I remember of. 

Mr. Kennedy. You would remember, Mr. Clancy. 

It is not a very satisfactory answer. 

The Chairman. Did you submit bills to anyone for reimbursement 
for the work you did that you are speaking of, your campaigning, and 
spreading the gospel ? Did you receive any money to reimburse you 
for expenses, out of this $10,000 that was taken out of union dues 
for that purpose ? 

Mr. Clancy. How long ago was that ? 

The Chairman. In 1955, 3 years ago. 

Mr. Clancy. In 1955, 1 don't remember. 

The Chairman. It does not go so far back that the memory of 
man cannot retain it. 

Mr. Clancy. I don't remember. 

The Chairman. Did you submit a bill for expenses ? 

Mr. Clancy. I have at various times; I submitted bills at various 
times for things that I have purchased. 

The Chairman. Do you recog-nize your signature, if you see it ? 

Mr. Clancy. As a rule, I do. 

The Chairman. Well, let us see^if the rule works, or if this is an 
exception. I present you a photostatic copy of the bill that you sub- 
mitted for your expenses out of this $10,000 check. 

(At this point a document was handed to the witness.) 

The Chairman. Is that your signature ? 

Mr. Clancy. Yes ; I believe it is. 

The Chairman. You believe it is ? 

Mr. Clancy. Yes. 

The Chairman. Does that refresh your memory to any degree? 

Mr. Clancy. Yes ; to a certain degree it does. Senator. 

The Chairman. I believe I have helped you a little then. 

Mr. Clancy. Thank you. 

The Chairman. What is the total that you submitted the bill for 
there? 



7596 IMPROPER AcnvrriEis n^ the, labor fteild 

Mr. Clancy. This total here, I would not say I submitted a bill for 
it, this total here is $2,237, even. 

The Chairman. $2,237 even? Is that $22.37? 

Mr. Clancy. No, $2,237. 

The Chaieman. So that refreshes your memory a little ? 

Mr. Clancy. Yes, sir. 

The Chairman. Out of that $10,000 then, you got that amount of 
money ; did you ? 

Mr. Clancy. No, sir. 

The Chairman. What did you do with it ? Did you get reimbursed 
for that? 

Mr. Clancy. No, sir. 

The Chairman. Who got that money? 

Mr. Clancy. I never got a dime of it in my hands, that money. 

The Chairman. Why did you sign that ? 

Who were you helping to get the money ? 

Mr. Clancy. I was not helping anybody. 

The Chairman. Somebody got it, and that is your signature ? 

Mr. Clancy. One man did not want it to appear that he was spend- 
ing all of the money to catch these people, and so those were submitted. 

The Chairman. So you do remember all about it? 

Mr. Clancy. I mean to go out, I don't remember all about it, I am 
just telling you what it was. 

The Chairman. Who told you to submit that bill ? 

Mr. Clancy. I did not submit the bill. It was submitted to me. 

The Chairman. Wlio told you to sign it? 

Mr. Clancy. The boss. 

The Chairman. Wlio is the other boss? 

Mr. Clancy. Wliat other boss are you talking about ? 

The Chairman. Didn't you say the other boss ? 

Mr. Clancy. I said the boss. 

The Chairman. Who is the boss ? 

Mr. Clancy. Mr. Swanson was. 

The Chairman. And did he prepare that and submit it to you to 
sign ? 

Mr. Clancy. Eight. 

The Chairman. He prepared it and submitted it to you to sign ? 

Mr. Clancy. I would not say he did it, because I doubt if he can run 
a typewriter, but he 

The Chairman. He had it prepared and brought it to you and told 
you to sign it? 

Mr. Clancy. I don't think that he told me. He asked me, and he 
said, "Here sign it, because I don't want it to be shown that I have 
spent all of the money." 

The Chairman. So that is a fraud, and you did not make those 
trips, and you did not spend that money ? 

Mr. Clancy. And I did not receive any of the money. 

The Chairman. All right, that makes it a fraud. You did not get 
the money, and you did not spend the money, but you signed that 
so that someone else could get it ? 

Mr. Clancy. He spent it, doing what he was supposed to do with it. 

The Chairman. That will be made exhibit No, 26. 

(The document referred to was marked "Exhibit No. 26" for ref- 
erence, and will be found in the appendix on p. 7865.) 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7597 

Mr. Kennedy. Just in finishing up at least temporarily with you, 
Mr. Clancy, do you know a Louis Solari ? 

Mr. Clancy. Yes. 

Mr. Kennedy. Do you know him ? 

Mr. Clancy. Yes, lie is one of the agents. 

Mr. Kennedy. From the Operating Engineers ? 

Mr. Clancy. That is right. 

Mr. Kennedy. Do you remember having a conversation with him 
in December of 1956, regarding a jeep ? 

Mr. Clancy. Regarding a jeep ? 

Mr. Kennedy. Yes, regarding a jeep, or an automobile. 

Mr. Clancy. Go a little further and maybe I will if you will re- 
fresh my memory. 

Mr. Kennedy. Does the union have any jeeps? 

Mr. Clancy. They had one, and they have got one now. 

Mr. Kennedy. Do you remember having any conversation with Mr. 
Solari regarding a jeep in December of 1956 ? 

Mr. Clancy. I don't remember the date that I talked to him in 
December regarding the jeep. 

Mr. Kennedy. Do you remember having a conversation with him 
about the jeep ? 

Mr. Clancy. I remember vaguely something about it once, because 
it came up later on and he asked about it. 

Mr. Kennedy. Did you ask him or tell him that you wanted the 
wheel and the tire off the jeep ? Did you request that he report that 
this wheel and tire had been stolen so that you could take them 
for yourself ? 

Mr. Clancy. I believe that I haven't got it with me, but I believe 
I have a letter from the same Mr. Solari, and that was a misunder- 
standing in a conversation. I remember it now, because I have a jeep, 
a pickup, and he had, I believe if you have his statement there, he had 
lost a spare tire I believe for it, or a spare tire and wheel possibly 
for a jeep that he was driving. 

I believe that he asked me or said something to me about it, that he 
had lost it and that the sheriff had recovered it. I told him at the 
same time that we were repairing the airplane, that they were using a 
jeep that I purchased later on, and that a tire had been stolen off of the 
one that I purchased down there at the building that Mr. Gordon told 
you about a few minutes ago, and that the insurance company had 
replaced that one tire on that jeep for me. 

I did not tell Mr. Solari to steal me a jeep or a tire or anything else. 

Mr. Ivennedy. Did grou ask him or tell him that he should report 
the tire and the wheel as being stolen, because you needed it for your 
own car ? 

Mr. Clancy. No, sir. I said, "If you have lost it, all you have to do 
is to report it." 

Mr. Kennedy. What is that ? Excuse me, I didn't hear you. 

Mr. Clancy. I said, "If you have lost it" — I was relating what hap- 
pened to me when I lost one, and I said, "If you lost it, report it." 
And he said, "The sheriff has already found it for me." I believe that 
was the conversation. 

Mr. Kjennedy. Did you tell him to report it? Or just answer the 
question, did you tell him to report that the wheel and the tire were 
stolen from the jeep, because you wanted them for yourself ? 



7598 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Cl.^ncy. No ; I did not want them. What would I want it for '( 

Mr. Kennedy. You needed it at your prune ranch. Do you have a 
prune ranch ? 

Mr. Clancy. I didn't need it there. 

Mr. Kennedy. Do you have a prune ranch ? 

Mr. Clancy. I have a ranch, but the trees aren't producing prunes 
yet. 

Mr. Kennedy. But it is a prune ranch ? 

Mr. Clancy. Well, it will be eventually, if I live long enough. 

Mr. Kennedy. You have a prune dehydrator that is working out 
there? 

Mr. Clancy. Yes, sir. 

The Chairman. Let us answer the question positively now. Did 
you tell him that you wanted him to report it stolen so that you could 
take it for your own use ? 

Mr. Clancy. No, sir. 

The Chairman. You say that positively it is not true? 

Mr. Clancy. That is positively a misunderstanding, and I never 
told him any such thing. 

The Chairman. You either told him or you did not. Did you tell 
him ? 

Mr. Clancy. No. 

Mr. Kennedy. He did not tell you then that if he did report the 
wheel and tire as stolen, he would get in trouble and lose his job, and 
you said, "That is all right, I will take care of you" ? 

Mr. Clancy. How could I take care of him ? 

Mr. Kennedy. You did not ? 

Mr. Clancy. No ; I couldn't take care of him. 

The Chairman. It is not a question of whether you could or not. 
Did you tell him that ? 

Mr. Clancy. No. 

The Chairman. All right, then, you did not tell him that. 

Mr. Clancy. No. 

Mr. Kennedy, Did he report the tire and wheel as stolen? 

Mr. Clancy. No, sir. 

Mr. Kennedy. Did he turn that tire and wheel over to you? 

Mr. Clancy. No, sir. 

Mr. Kennedy. He never did ? 

Mr. Clancy. No, sir. 

Mr. Kennedy. So any statement that he made to the contrary is 
false, is that right ? 

Mr. Clancy. I have his true statement of the misunderstanding. 

Mr. Kennedy. That is all for now. 

We have one witness, and it will be quick. 

The Chairman. Will you come around. Miss MacMillan, and will 
you be sworn? Do you solemnly swear that the evidence you shall 
give before this Senate select committee shall be the truth, the whole 
trutli, and nothing but the truth, so help you God ? 

Miss MacMillan. I do. 

TESTIMONY OF MISS LOIS MacMILIAN 

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



IMPROPER ACTIVITIES IN THE LABOR FIELD 7599 

Miss MacMillan. Lois MacMillan, and I live at 322 19th Avenue, 
San Francisco, Calif. I work for the Operatino; Engineers, Local 
No. 3, as secretary to Mr. Mathews, the recording secretary. 

The Chairman. Secretary to whom ? 

Miss MacMillan. Mr. Mathews, the recording secretary. 

The Chairman. Do you have counsel ? Do you waive counsel ? 

Miss MacMillan. I don't understand that, but I guess I do. 

The Chairman. I do not want you to misunderstand. A witness 
coming before the committee has a right, if they desire, to have 
counsel present. 

Miss MacMillan. I waive counsel. 

The Chairman. He would be to advise them about their legal 
rights. 

Miss MacMillan. I waive counsel. 

The Chairman. Proceed. 

Mr. Kennedy. Miss MacMillan, you have been with local No. 3 
since what time ? 

Miss MacMillan. Since June of 1942. 

Mr. Kennedy. And you have been secretary to Mr. Mathews, the 
recording secretary of local No. 3 for how long ? 

Miss MacMillan. Since August of 1942. 

Mr. Kennedy. Did you take any part in the preparation of the 
minutes of the executive board of local No. 3 ? 

Miss MacMillan. Yes. For the first year I was there I attended 
board meetings and the last 7 or 8 years, I have taken the minutes from 
Mr. Mathews. He has dictated the minutes to me. 

Mr. Kennedy. What about tlie union membership meetings ? 

Miss MacMillan. I have not attended those. Only 1 or 2 spe- 
cial meetings. 

Mr. Kennedy. Did you also make the minutes on those ? 

Miss MacMillan. The two meetings I was at, yes. 

Mr. Kennedy. Any other minutes ? 

Miss MacMillan. Mr. Mathews would dictate them. 

Mr. Kennedy. He would dictate the minutes for the meetings of 
the executive board and of the membership meetings to you, is that 
correct ? 

Miss MacMillan. That is correct. 

Mr. Kennedy. That has been in the last 4 or 5 years ? 

Miss MacMillan. He has always dictated the regular membership 
meetings to me. 

Mr. Kennedy. A^-liat practice did you follow as to writing up the 
minutes ? 

Miss MacMillan. Do you mean how many copies I would make ? 

Mr. Kennedy. Yes. 

Miss MacMillan. I would make 3 copies, an original and 3 copies, 
of all board minutes. 

Mr. Kennedy. Wliat would you do with those ? 

Miss MacMillan. I would give one copy to our bookkeeper for the 
purpose of making whatever refund checks or contributions, that 
type of thing. I would give one to the girl who handled our sick 
benefit fund, which is allowing members dues when they are sick. I 
would keep a copy myself and the original went into our files. 

Mr. Kennedy. The original went into your files. Who kept those 
files? 



7600 IMPROPEE ACTIVITIEIS EST THE LABOR FIELD 

Miss MacMlllan. They were in Mr. Mathews' office. 

Mr. Kennedy. Were they kept in a safe ? 

Miss MacMillan. In a steel cabinet lile. 

Mr. Kennedy. ^Vlio had the key to that ? 

Miss MacMillan. I have a key and Mr. Mathews has a key. 

Mr. Kennedy. Just the two of you ? 

Miss MacMillan. As far as I know. 

Mr. Kennedy. Have you learned that the minutes on several differ- 
ent occasions, minutes of the executive board, have been altered ? 

Miss MacMillan. Yes. 

Mr. Kennedy. You have. Were the minutes altered on at least 6 
or 7 occasions that you know of ? 

Miss IMacIVIillan. Yes ; at least that. 

Mr. Kennedy. And they were altered in order to authorize the pay- 
ment and the drawing of certain sums of money ; is that right 'i 

Miss MacMillan. That is the way it would appear. 

Mr. Kennedy. Mr. Chairman, this is the first matter that we dis- 
cussed this morning, where there was the original and the one that 
was altered, regarding the payment of $10,000. 

The Chairman. We have photostatic copies of the minutes of the 
meeting of the executive board of local union No. 3 on July 3, 1956. 
There are two sets, one marked "A" and the other marked "B". The 
one marked "A" has been made exhibit No. 23 in the record and the 
one marked "B" has been made exhibit No. 24. 

I ask you to examine these photostatic copies of those two exhibits 
and see if you recognize them. 

(Documents were handed to the witness.) 

jkiss MacMillan. On exhibit A, I would say that is the original 
minutes that I typed. 

The Chairman. "A'* is exhibit 23, is it ? 

Miss MacMillan. Yes. 

The Chairman. All right, and the other is exhibit No. 24. That is 
identified as "B". 

Miss JSIacMillan. It is not the minutes that I typed. 

The Chairman. What is the difference ? What paragraph is dif- 
ferent in the one that you typed and kept as the original and the one 
that appears on exhibit 24, identified as "B"? 

Miss MacMillan. In the first instance, the typing is not the same. 
It is not the same typewriter. The motion that is in your exhibit 
24, "regularly moved and seconded that $10,000 be allocated for the 
defense fund," and so forth, is not in your exhibit 23. 

The Chairman. Which is the truthful record, according to the one 
that you prepared ? 

Miss MacMillan. Your exhibit 23. 

The Chairman. Exhibit 23. In other words, the original record 
as you prepared it and as it was dictated to you by Mr. Mathews and 
placed in the files as the permanent minute record has been altered 
m exhibit 24? 

Miss MacMillan. That is correct. 

The Chairman. And changed by adding to it and including the 
paragraph with reference to the authorization of the spending of 
$10,000? 

Miss MacMillan. That is correct. 



IMPROPEiR ACTIVITIES EST THE LABOR FIELD 7601 

The Chairman. So that was not reported to you and you did not 
so record it ? 

Miss MacMillan. No. 

The Chairman. And it has been written up with a different type- 
writer ? 

Miss MacMillan. That is rio;ht. 

The Chairman. You did not write it and you knew nothing 
about it? 

Miss MacMillan. I did not write it and knew nothing about it. 

The Chairman. When did you first learn about it '{ 

Miss MacMillan. I learned about it in April or May of 1957. 

The Chairman. After this investigation was underway ? 

Miss MacMillan. That is right. 

The Chairman. Thank you. 

Mr. Kennedy. Mr. Chairman, we had some discussion this morning 
with Mr. Clancy regarding a second $10,000 check of the pension fund. 
I would like to have the witness identify these documents to find out 
if there was an alteration made in the minutes, giving authorization to 
the pension fund. 

The Chairman. I present to you two copies purporting to be min- 
utes of the executive board meetmg of local union No. 3 on March 14, 
1956. One of these, for purposes of identification up to now, is marked 
"A" and the other is marked "B."" "A" contains two typewritten pages. 
"B" contains two and a fraction of a third. 

I ask you to examine these, state if you identify them and if so, which 
is the one you prepared and was the original minutes kept. 
( Documents were handed to the witness. ) 

Miss MacMillan. Exhibit "A" is the one that I prepared. 

The Chairman. Exhibit "A" is the one you prepared. That was 
the original minutes and the official minutes, according to your prepa- 
ration of them as dictated by Mr. Mathews ? 

Miss MacMill.\n. That is right. 

The Chairman. All right. That will be made exhibit No. 27. 

(The document referred to was marked "Exhibit No. 27" for refer- 
ence and will be found in the appendix on pp. 78G6-7867.) 

The Chairman. The other one, do you identify the other one which 
is now marked "B" ? 

Miss MacMillan. Well, it is not one that I did. It is a retyped copy 
of the minutes. 

The Chairman. Is it also on a different typewriter ? 

Miss MacMillan. Yes, it is. 

The Chairman. Does it compare with the one you wrote ? 

Miss MacMillan. In the content, do you mean ? 

The Chairman. In content. If it does not, will you point out the dif- 
ference between the two and read what you find has been added, or what 
alteration you have fomid, what may have been added or extracted 
from it. 

Miss MacMillan. There is a motion that has been added to your 
exhibit 28 

The Chairman. Do you identify that one ? 

Miss MacMillan. As the incorrect one, yes. 

The Chairman. That will be made exhibit No. 28. 

21243—58 — pt. 19 7 



7602 IMPROPER ACTIVrTIES IN THE LABOR FIELD 

(The dociiineiit referred to was marked "Exhibit No. 28" for refer- 
ence and will be found in the appendix on pp. 7868-7870.) 

Miss MacMillan. A motion has been added in the exhibit 28 as 
follows : 

It was regularly moved and seconded that the executive officers he instructed 
to take care of all the legal, actuarial, printing, and other expenses occurred 
in connection with the proposed pension plan from the defense fund. Carried. 

That motion is not in the original minutes. 

The Chairman. It was never dictated to you ^ 

Miss MacMillan. It was not. 

The Chairman. I believe you had a key to the file where the orig- 
inal minutes were kept ? 

Miss ]\IacMillan. Yes. 

The Chairman. If a member of the union, a dues-paying member, 
would come in and say, "I would like to see the minutes of the execu- 
tive board meeting of — ■' that date, March 14, I believe it was, would 
you have shown him ? 

Which would you have shown him as the official minutes? 

Miss MacMillan. The copy that would have been in the official 
original file. If this was in 1956 that he came and asked for it, this 
would have been the copy that he would have seen, this other one. 

The Chairman. Plad he come in 1956 and asked to have seen the 
minutes, he would have seen the one that did not contain the motion 
regarding the $10,000, is that correct ? 

Mi-ss MacMillan. That is correct, if the minutes had not been 
changed prior to 1956. I have no way of knowing when they were 
changed. 

The Chairman. Do 3'ou know when the other was substituted for 
your original ? 

Miss ilAclMiLLAN. No, I do not. I have no way of knowing. 

The Chairman. In other words, if the original had been there, you 
would have shown him the original ? 

Miss MacMillan. That is nght. 

The Chairman, Do you know where these others were kept ? 

INIiss MacMillan, No, I do not. 

The Chairman. That is, these that have been altered, these phony ' 
ones, do you know where they were kept? 

Miss MacMillan. No, I don't. 

The Chairman. They have not been in the original files? 

Miss MacMillan. Only when I found thenu They had been put 
in there. 

The Chairman. They had been put in the original files? 

ISIiss MacMillan. Yes. 

The Chairman. A^^len did you find them ? 

]Miss ]\Iac]\Iillan. As I said before, in April or May. It was when 
the international auditor came out. 

The Chair:man. And you were surprised to find them? 

Miss JMac^NIiixan. Yes, I was. 

Mr. Kennedy. They had been put in there to replace the minutes 
that you had drawn up? 

Miss MacISIillan. Yes, 

The Chairman, Had your minutes been taken out of the files? 

INIiss MacMill.\n. Yes. 



lAlPROPER ACTIVITIES IN THE LABOR FIELD 7603 

The Chairman. They had been taken out and these had been sub- 
stituted ? 

Miss MacMillan. That is correct. 

The Chairman. But you had retained a copy of the original, your- 
self? 

Miss MacMillan. Yes. 

The Chairman, That is the reason you know the difference? 

Miss MacMillan. Yes. 

Mr. Kennedy. Now, Mr. Chairman, we have found five other in- 
stances where the minutes have been altered. Should we put them in 
all together? 

The Chairman. Do you have them ? 

Mr. Kennedy. Yes. We have the alterations made in each one. 
Miss MacMillan can read them into the record. 

The Chairman. I hand you here records, minute records, of the 
executive board meeting of union local No. 3, of February 18, 1953, of 
July 14, 1951, of July 20, 1955, and July 18, 1956, four different meet- 
ings that I have identified by date. There appear here two sets of 
minutes for each of those meetings. One is marked "A" and the other 
is marked "B" in each instance. I ask you to examine each of these 
four sets. 

State first whether you identify them and then state whether "A" 
or "B" is the original. In each instance point out, if you identify 
them, the discrepancies or the change that is made from the original 
minutes. Identify them by date. 

(Documents were handed to the witness.) 

Miss MacMillan. I am looking at the executive board minutes of 
February 18. I identify A as the original minutes. 

The Chairman. That may be made exhibit 29. 

(The document referred to was marked "Exhibit No. 29" for refer- 
ence and may be found in the files of the select committee.) 

Miss MacMillan. I identify B as the changed minutes. 

The Chairman. That will be made exhibit No. 30. 

(The document referred to was marked "Exhibit No. 30" for refer- 
ence and may be found in the files of the select committee.) 

The Chairman. Point out the change. 

Miss MacMillan. A motion has been added as follows : 

From Utah, regarding right-to-work bill : Regularly moved and seconded 
that the executive officers be authorized to give any financial assistance from 
the defense fund to help defeat the bill. Carried. 

The Chairman. That was not in the original minutes? 

Miss MacMillan. No. 

The Chairman. Thank you. Will you take the next series? 

Miss MacMillan. I have the executive board meeting minutes of 
July 14. 

The Chairman. What year? 

Miss MacMillan. 1954. I identify exhibit A as the original 
minutes. 

The Chairman, That will be made exhibit 31. 

(The document referred to was marked "Exhibit No. 31" for 
reference and may be found in the files of the select committee.) 

Miss MacMillan. I identify B as the changed minutes. 

The Chairman. That will tie made exhibit 32. 



7604 IMPROPER ACTIVITIES IN THE LABOR FIELD 

(The document referred to was marked "Exhibit No. 3^" for 
reference and may be found in the files of the select committee.) 

The Chairman. Will you point out the alteration or change in the 
exhibit B or exhibit 32 ? 

Miss MacMillan. In exhibit B the following motion has been 
added : 

From the Nevada State federation regarding the right-to-worli petition: 
Regularly moved and seconded that the executive officers be authorized to spend 
whatever amount is necessary from defense fund to help defeat the bill. 
Carried. 

The Chairman. Thank jou very much. "Will you take the next 
series ? 

Miss MacMillan. These are the executive board minutes of July 
20, 1955. Exhibit A I identify as the original minutes. 

The Chairman. That may be made exhibit 33. 

(The document referred to was marked "Exhibit No. 33" for 
reference and may be found in the files of the select committee.) 

Miss MacMillan. Exhibit B is the changed minutes. 

The Chairman. That may be indentified as exhibit 34. 

(The document referred to was marked "Exhibit No. 34" for 
reference and may be found in the files of the select committee.) 

The Chairman. Will you point out the change in the minutes of 
that meeting ? 

Miss MacMillan. The following has been added to exhibit B : 

RegarfMng the strike at Kennecott Bingham pit : Regularly moved and seconded 
that $1,000 be sent for strike relief from defense fund. Carried. 

The Chairman. Will you examine the last set? 

Miss MacMillan, The executive board minutes of July 18, 1956. 
I identify A as the original minutes. 

The Chairman. That may be made exhibit No. 35. 

(The document referred to was marked "Exhibit No. 35" for 
reference and may be found in the files of the select committee.) 

Miss MacMillan. And B as the changed minutes. 

The Chairman. That will be made exhibit 3(5. 

(The document referred to was marked "Exhibit No. 36" for refer- 
ence and may be found in the files of the select committee. ) 

The Chairman. Point out the changes made. 

Miss MacMillan. "The following has been added to "B" : 

From Salt Lake office requesting further help in organizing in uranium pro- 
duction and mining. Regularly moved and seconded that the executive officers 
be instructed to lend iinancial assistance from the defense fund and to aid in 
the organizing. Carried. 

The Chairman. Thank you very much. 

Mr. Kennedy. I have one question of Mr. Gordon. 

TESTIMONY OF JOSEPH I. GORDON— Eesiimed 

Mr. Kennedy. Mr. Gordon, you made a study of the altered 
minutes and also of the records, the financial records of the union? 

Mr. Gordon. Yes ; I have. 

Mr. Kennedy. Have you determined how much money was with- 
drawn from the union, based on these altered minutes ? 

The Chairman. Does that include the five sets? We have had five 
sets identified. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7605 

Mr. Kennedy. Six sets, there are these 4 that you put in and 2 
originally. 

Mr. Gordon. Yes, I have, sir. 

Mr. Kennedy. How much does that total ? 

Mr. Gordon. $26,500. 

Mr. Kennedy. That was for February 18, 1953, on the Utah right- 
to- work bill, $5,000 ; the Nevada State Federation, the same $5,000 ; 
the Kennecott Bingham Pit, $1,000. The one in Nevada was July 
14, 1951. The one at Kennecott was July 20, 1955. 

Then there was $10,000 for pension fund on March 14, 1956 ; $10,000 
on the check cashing expedition, July 3, 1956; and $500 I believe, 
to Salt Lake City uranium. 

Mr. Gordon. Yes. 

The Chairman. Those are accurate ? 

Mr. Gordon. Yes ; they are, Mr. Chairman. 

The Chairman. Thank you. 

Are there any f'urher questions ? 

Mr. Kennedy. Tliank you very much. 

The Chairman. The committee will stand in recess until 2:15. 

(Whereupon, at 12:35 p. m., the hearing in the above-entitled 
matter was recessed, to reconvene at 2 : 15 of the same day.) 

afternoon session 

(At the reconvening of the conunittee, the following members were 
present : Senators McClellan, Ives, and Curtis.) 
The Chairman. The committee will come to order. 
Mr. Clancy, please come forward a moment. 

TESTIMONY OF PATRICK W. CLANCY— Resumed 

Mr. Kennedy. Mr. Clancy, were you at a convention in Las Vegas 
in December of 1953 ? 

Mr. Clancy. A convention ? 

Mr. Kennedy. In Las Vegas ? 

Mr. Clancy. In December ? 

Mr. IvENNEDY. In 1953 ? 

Mr. Clancy. I don't remember, INIr. Kennedy, whether there was a 
convention there at that time, or not. 

jMr. Kennedy. Were you in a group of about 12 or 14 of the union 
officials there in December of 1953 ? ^ 

Mr. Clancy. It is very possible that I was. 

Mr. Kennedy. I think some of you, according to the records from 
the hotel, were there for a day and some of you were there for 2 days. 
Is that right? 

Mr. Clancy. That is very possible, sir. 

Mr. Kennedy. And I believe that you paid the hotel bill ; you paid 
the Thunderbird Hotel in Las Vegas, Nev., $303.90 for the hotel bill. 

Mr. Clancy. I paid them that, sir? 

Mr. Kennedy. When I say "you," I mean the union which you 
represent. $303.90, do you remember that ? 

Mr. Clancy. No, I don't. 



7606 IMPROPER ACTTV'ITIES IN THE LABOR FIELD 

Mr. Kennedy. Do you remember having a $200 downpayment that 
you made at the Thunderbird Hotel, and then the $303.90 being on 
top of that ? Do you remember that transaction ? 

Mr. Clancy. No, I don't. 

Mr. Kennedy. The total hotel bills for this group, which was about 
a dozen men for this 2-day period, was $503.90. Do you know any- 
thing about that ? 

Mr. Clancy. I don't remember how much it was, sir, if I paid it. 

Mr. Kennedy. That was all paid, and a check was made out to the 
Thunderbird Hotel, Now I would like to ask you about this item. 

The Chairman. Mr. Clancy, the Chair hands you what purports to 
be a photostatic copy of what I think you term a warrant, signed by 
you and by C. F. ^latthews. It is undated. It is made payable to 
the Thunderbird Hotel in the amount of $2,400. It is warrant No. 
W-53260. I would like for you to examine that photostatic copy and 
state if you identify it. 

(The document was handed to the witness.) 

The Chairman. Do you identify that warrant, Mr. Clancy ? 

Mr. Clancy. It is my signature on the warrant, sir. 

The Chairman. You identify your signature? 

Mr. Clancy. On the warrant. 

The Chairman. Evidently, if you identify your signature, you 
have seen the warrant some time before ? 

Mr. Clancy. I evidently seen it to sign it, yes. 

The Chairman. What is that warrant for ? 

Mr. Clancy. It states "Hotel expenses." 

The Chairman. It states "Hotel expenses" ? 

Mr. Clancy. That is right. 

The Chairman. It is not dated. Do you know why it is not dated? 

Mr. Clancy. No. I don't sir, because I do not make these out. The 
bookkeeper makes them out. I don't make them out. 

The Chairman. You do not make them out. Who told you to 
sign that warrant ? 

Mr. Clancy. Mr. Chairman, the warrant and the check is made 
together, so fashioned. There was nobody authorized to tell the 
bookkeeper to make a check but one person, and when the check 
is made the Avarrant is made with it, the same typewriter in the same 
time. 

The Chairman. We will see about that in just a moment. I think 
you are very much in error. Wliat I wanted to know is, Did you 
sign that warrant? 

Mr. Clancy. Yes, that is my signature on the warrant. 

The Chairman. It will be made exhibit No. 37. 

(The document referred to was marked "Exhibit No. 37" for ref- 
erence, and will be found in the appendix on p. 7871.) 

The Chairman. Did you have any vouchers or anything to substan- 
tiate that bill, when you signed the warrant ? 

Mr. Clancy. I don't remember whether there was any with it or 
not. 

The Chairman. Don't you remember that the hotel bill was paid 
on regular vouchers ? 

Mr. Clancy. No ; I don't. 

The Chairman. You don't recall that ? 

Mr. Clancy. No ; I don't. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7607 

The Chairman. To refresh your memory, I hand you a check dated 
November 3, 1953, made payable to the same hotel, the Thunderbird 
Hotel, in the amount of $200, the check signed by Mr, Vandewark 
and by Mr. Mathews, according to the records as an advancement 
when the hotel accommodations were reserved. I will ask you to ex- 
amine that check and see if you identify it. 

(The document was handed to the witness.) 

Mr. Clancy. What do you want to know about it, Senator? 

The Chairman. I w^ant to know if you recognize it. 

Mr. Clancy. I don't know whether I ever seen the check before. 

The Chairman. Do you recall that? Do you recognize that as a 
down payment for the hotel accommodations ? 

Mr. Clancy. It could be. I don't remember whether it was or not. 

The Chairman. To help you out a little further, I will ask you to 
examine this warrant. It is No. W-53428, dated December 23, 1953, 
which was issued to substantiate the balance of the hotel bill. I will 
ask that you examine the statements of the hotel rendered in support 
of the account, and particularly your own statement, which shows the 
$200 advanced, and also the balance for which you signed another 
warrant. 

I will ask you to examine this warrant, a warrant for hotel expense, 
and see if you identify your signature on it. 

(The document was handed to the witness.) 

Mr. Clancy. Yes ; that is my signature on that warrant. 

The Chairman. That warrant may be made exhibit No. 38. 

(The document referred to was marked "Exhibit No. 38" for ref- 
erence. Will be found in the appendix on p. 7872. ) 

Tlie Chairman. I will ask you to examine the vouchers there, the 
hotel statements, of the account, and see if those w^ere not received by 
you and were in support of that warrant. 

Mr. Clancy. I beg your pardon ? 

The Chairman. Were not those hotel statements received by you 
and attached to the voucher as substantiating that expenditure ? 

Mr. Clancy. They were never received by me. They were received 
by the bookkeeper, not by me. 

The Chairman. All right. That is what you based the voucher on, 
is it not, or what you based the warrant on. Well, you can identify 
those as a statement rendered by the hotel upon which the warrant was 
based, can you not ? 

Mr. Clancy. Yes, sir ; but I thought there might be some in here 
that weren't within our organization. You never know. 

The Chairman. Well, I want you to look and find your own. Let 
us see what it shows. 

Mr. Clancy. Find mine ? 

The Chairman. Yes. Turn back to it and see if it does not show a 
credit of $200 in advance payment, this check wliich you just iden- 
tified. 

Mr. Clancy. Credit? It says "Credit transfered to local No. 3, 
Engineers." 

The Chairman. How much ? 

Mr. Clancy. A check has been forwarded down there for $200. 

The Chairman. That is the check that you just saw a moment ago; 
isn't it? 

Mr. Clancy. I presume it is. 



7608 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. Yes. 

Mr. Clancy. I didn't forward it down there; no. I had nothing 
to do with that. 

The Chairman. I understand. That check and this voucher, the 
warrant you have seen, with the accompanying supporting statements 
from the hotel, make up a total of $503.90 ; is that correct ? 

Mr. Clancy. You have the figures there, I can add them. I didn't 
add them up, sir. 

The Chairman. It is $200, and $303.90, making $503.90. 

Mr. Clancy. Yes. 

The Chairman. Now I hand you the check that was issued on the 
basis of that warrant and the supporting documents, the check dated 
the same day, December 23, 1953, in the amount of $303.90, to the 
Thunderbird Hotel. I ask you to examine that check and see if you 
identify it. 

( The document was handed to the witness. ) 

Mr. Cl.\ncy. That makes up the bahmce of that that you were 
talking about, sir 'i 

The Chairman. Yes. 

Mr. Clancy, Thank you. 

The Chairman. Are we correct now tliat there is a total, with the 
$200 advance, of $503.90 paid out of the union funds to take care of 
the accommodations of you people who were down there ? 

Mr. Clancy. Yes, sir ; that is correct. 

The Chairman. That is the total that was paid ? 

Mr. Clancy. Yes, sir. 

The Chairman, Now, you identified tixis warrant as having signed 
it for $2,400, a warrant that has been made exhibit No. 37. You 
identified that, I believe, as having your signature ? 

Mr. Clancy. Yes, sir. 

The Chairman. That was submitted. While it. is undated, 1 want 
to ask you if after you came back from that meeting down there if 
you did not draw this warrant for $2,400 and then issue a check thereon 
for the same amount ? 

Mr. Clancy, Not to my knowledge, sir. 

The Chairman. I present to you a clieck dated December 12, 1953, 
in the amount of $2,400, made payable to cash. I will ask you to 
examine that check and see if you identify it. 

(A document was handed to the witness. ) 

Mr. Clancy. It is one of the photostatic copies of one of our cliecks. 

The Chairman. And that warrant and the check compare in amount 
exactly, do they not ? 

Mr. Clancy. Yes. 

The Chairman. All right, that is the warrant supportmg this check, 
is it not ? 

Mr. Clancy. I guess so, it looks like it. 

The Chairman. It looks like it, does it not ? 

Mr. Clancy, Yes, sir. 

The Chairman. Then if the warrant is made to Thunderbird Hotel, 
can you tell us why the check was made to cash ? 

Mr. Clancy. You would have to ask the man that orders the checks 
made. I don't have that authority, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7609 

The Chairman. All right, let us see the endorsement on that check. 
^Yho is Thomas Lawson or Thomas K. Lawson ? Do you know him ? 

Mr. Clancy. Tom Larson, I do not believe I know a Tom Larson. 

The Chairman. Lawson ? 

Mr. Clancy. I don't believe that I laiow a Tom Lawson. 

The Chairman. Well, do you know a Theo. R. Lawson ? 

Mr. Clancy. Theodore Lawson ? 

The Chairman. Well, he signed it "Theo." 

Mr. Clancy. That is Ted Lawson. I know a Ted Lawson but I do 
not want to get the names confused, sir. Is it Ted Lawson? 

The Chairman. It is Theo. R. Lawson on this. Do you know a Ted 
Lawson ? 

Mr. Clancy. Yes, sir. 

The Chairman. Was he down there with you on the trip ? 

Mr. Clancy. He lives in Las Vegas, and he is in Las Vegas, and I 
presume he was there, and I don't remember now whether he was or not. 

The Chairman. You do not know whether he was there or not? 
He lives there ? 

Mr. Clancy. Yes, sir. 

The Chairman. What business is he in ? 

Mr. Clancy. He is a representative of one of the other local unions. 

The Chairman. Another union man ? 

Mr. Clancy. He is a representative of a local union. 

The Chairman. It seems that he endorsed this check and got the 
money for it. Do you Ijnow anything about that ? 

JVIr. Clancy. I do not, sir. 

The Chairman. And the voucher or warrant was made out to the 
hotel, and the money was taken in cash. Can you account for what 
happened to that money ? 

Mr. Clancy. I cannot. 

The Chair3ian. Did you get any of that money ? 

Mr. Clancy. I did not. 

The Chairman. Do you know how it was spent ? 

Mr. Clancy. No. 

The Chairman. You were president, and vou know nothing about 
it? 

]Mr. Clancy. I don't know how it was spent or anything about it. 

Mr. Kennedy. Why did you make out the warrant ? 

The Chairman. The $2,400 check there will be made exhibit No. 39. 
(Document referred to was marked "Exhibit No. 39" for reference 
and will be found in the appendix on p. 7873.) 

Mr. Kennedy. Why did you make out the warrant? 

Mr. Clancy. Mr. Kennedy, I tried to tell you a few moments ago, 
and the chairman wouldn't let me proceed, and so evidently he didn't 
want to know how the warrants are made out. Do you want to know 
how the warrants are made out ? 

Mr. Kennedy. I want to know whv you made up this warrant for 
$2,400. 

Mr. Clancy. I don't make up the warrants, sir. 

Mr. Kennedy. Why did you sign the warrants ? 

Mr. Clancy. I tried to tell you a few minutes ago, Mr. Kennedy, 
that the check and the warrant are followed like that with a piece of 
carbon ];)aper in between them, and the bookkeeper makes up the 



7610 IMPROPER ACTIVITIES IN THE LABOR FIELD 

check and the warrant at the same time. I may not see that war- 
rant for 3 or 4 days or maybe a week after it is made out. 

Mr. Kennedy, l^^iat is the purpose of having you sign warrants ? 

Mr. Clancy. The purpose in it ? 

Mr. Kennedy. Yes. 

Mr. Clancy. I don't like the way he said that "yes." 

I presume that is answered this way: here is a place on the war- 
rant that says, "President" and so we sign it. 

The Chairman. Is that the only reason you can give ? 

Mr. Clancy. That is about as good as any. 

The Chairman. That is about as good as any ? I believe it is the way 
the thing operates. 

Senator Curtis. The reason that you have to sign a warrant is be- 
cause you, as president, are responsible for the conduct of the union, 
and there must be a warrant before a check being issued, isn't that 
true? 

Mr. Clancy. Not necessarily. 

Senator Curtis. You affixed your signature to a document that 
authorized the pavment of $2,400 of the union's money. A"\niat was the 
$2,400 for, and who got it ? 

Mr. Clancy. That I could not answer, and I do not know. 

Senator Curtis. Why did you sign it if you did not know ? 

Mr. Clancy. I signed the warrant. 

Senator Curtis. AYliy did you sign the warrant if you did not know 
what it was for? 

Mr. Clancy. There might have been a whole bunch of warrants and 
I signed them as they went through. I might not even have been han- 
dling it when the warrant was made out, and I couldn't answer that 
now. That has been a long time ago. 

Senator Curtis. It is a sizable item. 

Mr. Clancy. Yes, sir. 

Senator Curtis. I just do not believe that you can escape respon- 
sibility for this by just saying that you don't Icnow and that you just 
work there. You were president and the members had a right to look 
to you for faithful performance of your duties. 

You are not a minor and you are not under guardianship. You 
signed a warrant authorizing the payment of $2,400, and you will not 
tell this committee what the $2,400 was for or who got the money ? 

Mr. CluVncy. You will have to ask the man who got the cash out 
of the check. I didn't cash it . 

Senator Curtis. You set it in motion, and without that warrant 
there would not have been anv check. That is all . 

The Chairman. The Chair will make check No. W-52605 in the 
amount of $200 which has been identified, as exhibit No. 40. And 
check No. W-53428, which has been identified, in the amount of $303.90 
to be made exhibit No. 41. 

(Documents referred to were marked "Exhibits No. 40 and 41" for 
reference and will be found in the appendix on pp. 7874-7875.) 

The Chairman. Proceed. 

Mr. Kennedy. Mr. Chairman, we are temporarily finished with Mr. 
Clancy. 

The Chairiman. Thank you, Mr. Clancy, and will you stand aside as 
we may need a little more information from you later"? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7611 

Mr. Kennedy. Mr. Vandewark, 

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. Vandewark. I do. 

TESTIMONY OF POETER E. VANDEWARK 

The Chairman. Will you state your name, and your place of resi- 
dence and business or occupation ? 

Mr. Vandew^\rk. My name is Porter E. Vandewark, and I live at 
732 Sancher Street, San Francisco. I am a business representative and 
treasurer of Operating Engineers Local No. 3. 

The Chairman. Mr. Vandewark, do you desire counsel present 
while you testify ? 

Mr. Vandew\\rk. No ; I waive that privilege. 

The Chairman. Thank you very much. How long have you been 
in this official position with Local No. 3 of the Operating Engineers ? 

Mr. Vandewark. Mr. Chairman, before I go any further, could I 
request that these flash cameras in front of me be discontinued. 

The Chairman. You may, and they will be discontinued until fur- 
ther orders from the Chair. 

Proceed. 

I believe that I had a question. How long have you been secretary- 
treasurer of local 3 ? 

Mr. Vandewark. The proper title, Mr. Chairman, is treasurer, and 
I have been treasurer since July 1941. I have been business repre- 
sentative since 1940. 

The Chairman. Thank you very much. 

Mr. Kennedy. I would like to ask him about that check. 

The Chairman. I hand you here what is exhibit 39 to the record in 
this proceeding, a check in the amount of $2,400, dated December 12, 
1953, made payable to cash. 

The check is signed by you apparently, and by Mr. Mathews. It 
is signed by you as treasurer, and I will ask you to examine the check 
and state if you identify it. 

(At this point a document was handed to the witness.) 

Mr. Vandewark. Yes, sir ; I can identify it. 

The check is in my handwriting with the exception of the signatures. 

The Chairman. The signatures were not yours ? 

Mr. Vandewark. With the exception of 2 of the signatures, pardon 
me, 1 signature is mine, and the amount, and cash and $2,400 is my 
writing, and the date on the check. 

The Chairman. All right. 

Proceed, Mr. Counsel. 

Mr. Kennedy. Where did you make that check out ? 

Mr. Vandewark. That check was made out in Las Vegas. 

Mr. Kennedy. What did you do with the money ? 

Mr. Vandewark. I did not receive any part of the money. 

Mr. Kennedy. What did you do with it ? 

Mr. Vandewark. Mr. Kennedy, the check was turned over to Mr. 
Swanson who had Mr. Theodore Lawson cash it for him, and Mr. 
Swanson took the entire proceeds of the check, and I received none. 

Mr. Kennedy. What was the reason for you signing the check ? 



7612 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Vandewakk. Mr. Swanson said that he needed additional 
funds there to take care of the conference expense, and the check 
was made out and signed. 

Mr. Kennedy. Why was it not made out to tlie Thunderbird 
Hotel ? 

Mr. Vandewark. The check was not made out to the Thunderbird 
Hotel, and the check w^as made out to pay to the order of cash. 

Mr. Kennedy. Why was it not made out to the Thunderbird Hotel, 
if that is what it was needed for \ 

Mr. Vandewark. Well, Mr. Kennedy, I just answered your ques- 
tion by saying that Mr. Swanson needed the money to pay the addi- 
tional expenses of the conference. 

Mr. Kennedy. Tlie warranty says it was needed to pay certain 
bills at the Thunderl)ird Hotel. Why was the check made out to 
cash % 

Mr. Vandewark. It was Mr. Swanson's direction, and 1 made it 
out as such. 

Mr. Kennedy. Well, you are tlie treasurer and you also liave re- 
sponsibilities, do you not ? 

Mr. Vandewark. That is correct ; I do. 

Mr. Kennedy. Did you get any vouchers to show liow tlie money 
was going to be spent ? 

Mr. Vandewark. I did not. 

Mr. Kennedy. You received nothing at all ? 

Mr. Vandewark. Nothing at all. 

Mr. Kennedy. You were there at that convention for 1 or possibly 
2 days. And the union was paying the hotel bills and why was 
$2,400 needed ? 

Mr. Vandewark. That I do not know. 

Mr. Kennedy. Did you try to find out ? 

Mr. Vandewark. No ; I did not. 

Mr. Kennedy. Are you not the treasurer of the union? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Do you have any responsibilities to the member- 
ship ? 

Mr. Vandewark. I believe I do. 

Mr. Kennedy. Did you meet the responsibilities by signing a 
check such as this ? 

Mr. Vandewark. Possibly not. 

Mr. Kennedy. Well, you could iiot have met the responsibilities 
that you had under these circumstances. 

The Chairman. In other words, you have no record, and you re- 
quired no record to show what that money was going for? 

Mr. Vandewark. No, sir, I did not. I did not have any such record. 

The Chairman. You were just told by Swanson to sign the check 
and issue the check and that is what you did ? 

Mr. Vandewark. That is correct. 

The Chairman. Is that your general practice, and is that the way 
the union operates ? 

Mr. Vandewark. That has happened many, many times, yes, sir. 

The Chairman. You dare not ask a question about it, do you ? 

Mr. Vandewark. Well, you usually got knocked down if you did. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7613 

The Chairman. That is what I mean. You are afraid to ask a 
question about it, and you would only lose your job but probably get 
knocked down ? 

Mr. Vandewakk. I used the expression ""knocked down," and I 
meant lose my job, that is correct. That is what I meant by the ex- 
pression "knocked down." 

The Chairmax. You did not mean a physical encounter? 

Mr. Vandewark. No, sir. 

The Chairman. But you had to carry out his order or lose your 
job? 

Mr. Vandew^vrk. Yes, sir. 

The Chairman. So when he says, "I want if-2,400 out of tlie treas- 
ury," you just give it out ? 

Mr. Vandewap.k. That is correct. 

The Chairman. Witliout knowing where it is going or whether it 
is for union purposes or whether it is for theft, embezzlement or what? 

Mr. Vandewark. That is right. There have been many instances 
that cliecks were drawn and I was re(piested to sign and I did it. 

The Chairman. And where you had serious doubts or good reason 
to believe that the money was not going for legitimate union purposes. 

Mr. Vandewark. At the time I did not have those doubts. I did 
not at that time have those doubts. Since, those doubts liave arisen, 
many of them. 

The Chairman. Many of them have arisen ? 

Mr. Vandewark. Yes, sir. 

The Chairman. It would seem to me you would have had a little 
doubt at the time. If a fellow comes in and says, "Here, I want $2,400 ; 
take it out of the treasury and give me a check for it." How long were 
you down at this meeting ? 

Mr. Vandewark, I believe 3 days. 

The Chairman. Well, that runs to about $2,900 for 3 days that 
was spent down there. The legitimate hotel bill, and the legitimate 
expenses apj^ear to have been covered by the other two checks, the 
$200 advanced to the hotel and the other check for $303.90 according 
to the hotel. And according to your records that is the total of the 
hotel bill, $503.90. That would not be too much out of line either way, 
I suppose. 

How many of you were there? 

Mr. Vandewark. I do not recall. I am only guessing, but I believe 
there were 12. 

The Chairman. Well, that would run for the 12, about $45 apiece. 
I guess that would be about a legitimate charge. 

Now, they have here though a check for $2,400, and there is no 
explanation for it. That was spent by your officers down there, by 
you folks down there on that trip out of union dues. That is not 
accounted for other than it shows up in the records on a warrant 
payable to the hotel, and on a check payable to cash, and the check 
was issued that way and cashed by Swanson. Is that correct? 

Mr. Vandewark. Mr. Swanson received the cash. The check was 
cashed by Theodore Lawson. 

The Chairman. That is like a bank cashing a check, but the cashier 
of tlie check was the man who presented it. 

Mr. Vandewark. That is right. 

The Chairman. And Swanson got the money? 



7614 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. Vandewark. That is right. 

The Chairman. All right, proceed. 

Mr. Kennedy. And you went along with all of these things because 
you felt that you would lose your job, if you did not? 

Mr. Vandewark. Not necessarily so. 

Mr. Kennedy. What was the reason? 

Mr. Vandewark. At this particular time I had every reason to 
believe, and I have trusted the man who was the manager of the 
organization and I believed when he said he needed it, it Avas necessary. 

Mr. Kennedy. Did you get vouchers for it at all ? 

Mr. Vandewark. None whatsoever. 

Mr. Kennedy. You were down there for 3 days, and you signed other 
checks to the Thunderbird Hotel to pay the legitimate expenses. 

Mr. Vandewark. I believe those checks were signed prior to going 
down there, and after returning. 

Mr. Kennedy. That is right, one for $'200 before you went down 
there, and $303 after you came back, and you were down there for 2 
nights. Now this is a check for $2,400, and w'hat other exj^enses 
could you possibly have down there that were legitimate ? 

Mr. Vandewark. I didn't have any other expenses. 

Mr. Kennedy. What other expenses could anyone have that were 
legitimate ? 

Mr. Vandewark. Well, I don't know. I believe the person who 
had the reason for the expense could best answer that question. 

Mr. Kennedy. Well, you got no vouchers from him at all ? 

Mr. Vandewark. No. 

Mr. Kennedy. Now, did you take x:)art in this check-cashing expe- 
dition also, Mr. Vandewark ? 

Mr. Vandew ARK. Yes, sir. 

Mr. Kennedy. You toured the country to cash checks ? 

Mr. Vandewark. Yes sir. 

Mr. Kennedy. With Mr. Clancy ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. And the purpose was to cash these checks in various 
sections of the country ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. So that it would appear that they had been cashed 
for legitimate organizing purposes ? 

Mr. Vandewark. Not organizing pui'poses. 

Mr. Kennedy. For legitimate campaign purposes ? 

Mr. Vandewark. Campaign purposes. 

Mr. Kennedy. Did you do any campaigning when you went to 
these various areas ? 

Mr. Vandewark. Very little. 

Mr. Kennedy. Did you do any ? 

Mr. Vandewark. I believe in one instance, yes. 

Mr. Kennedy. Where was that ? 

Mr. Vandewark. Butte, Mont. 
' Mr. Kennedy. What did you do there ? 

Mr. Vandewark. I talked to the local people of that particular 
local in Butte, Mont., the officers of that local. 

Mr. Kennedy. What was the purpose of going to these various 
areas with these checks ? 



IMPROPER AOTIVrTIES E^ THE LABOR FIELD 7615 

Mr. Vandewark. To make it appear as though the money was spent 
in those areas for electioneering. 

Mr. Kennedy. Where did you cash your three $2,000 checks ? 

Mr. Vandewark. I cashed one of the checks in the city of San 
Francisco, one in the city of Minneapolis, and one I believe in the 
city of Keno. 

The Chairman. The Chair presents to you three checks made pay- 
able to you, dated July 6, 1956, in the amount of $2,000 each, and 
the checks are drawn on local union No. 3, and on the account in the 
American Trust Co. They are each signed by V. S. Swanson, P. E. 
Vandewark, and C. F. Mathews. I ask you to examine these photo- 
static copies of checks and state if you identify those as photostatic 
copies of the checks which you cashed on that tour. 

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

(A document was handed to the witness.) 

Mr. Vandewark. Yes, sir, these are the checks I cashed. 

The Chairman. Let those checks be made exhibits No. 42, 43, and 
44. 

(The documents referred to were marked "Exhibits 42, 43, and 44, 
respectively", for reference and will be found in the ai^pendix on 
pp. 7876-7878.) 

The Chairman. Proceed, Mr. Kennedy. 

Mr. Kennedy. Did you see anything improper in what you were 
doing as far as the cashing of these checks, Mr. Vandewark? 

Mr. Vandewark. Well, I could say it wasn't a proper method of 
expenditures, yes. 

Mr. Kenni:dy. It was not? 

Mr. Vandewark. That is correct. 

Mr. Kennedy. What did you do with the money after you got it ? 

Mr. Vandeavark. With the exception of what was spent during 
the trip, I turned the remainder over to Mr. Swanson. 

Mr. Kennedy. Did you keep any of it ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. Why did you do that, Mr, Vandewark? 

Mr. Vandewark. Because, No. 1, I was requested and, secondly, 1 
was directed to do so. 

Mr. Kennedy. Did you approve of doing it? Did you think it 
was a good, proper thing to do ? 

]\Ir. Vandewark. I don't know as I gave it any particular thought 
at the time. 

Mr. Kennedy. You never objected to doing it, though? 

Mr. Vandewark. I did not. 

Mr. Kennedy. Did you object to anything that Mr. Swanson was 
ordering you to do in connection with any of these checks? 

]\Ir. Vandewark. Do you mean these ones we are discussing at 
the moment? 

Mr. Kennedy. These or any others that you handled. 

The Chairman. First with reference to these, and then make an 
answer with reference to the othei's. 

]\Ir. Vandewark. I made no objections to these; no sir. 

Mr. Kennedy. Did you make any objections to any of the other 
checks you have signed ? 

Mr. Vandewark. Tliat I have signed ? Is that your question ? 



7616 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. Kennedy. Yes. 

Mr. Vandewark. Not that I can recall of ; no, sir, 

Mr. Kennedy. You didn't see anything wrong or improper in all 
of these checks payable to cash or checks where you received no 
vouchers or support for the money being taken out of the union 
treasury ? 

Mr. Vandewark. Would you ask that question again, please. 

Mr. Kennedy. Would you read it ? 

(The question was read by the reporter.) 

Mr. Vandewark. Well, there was a question in my mind on many 
of them, but I never raised a personal objection ; no, sir. 

Senator Curtis. Mr. Chairman? 

The Chairman. Senator Curtis. 

Senator Curits. Did you report to your membership this trans- 
action involving this $2,400 which you assisted in getting out from 
the funds of the union i Did you report that to the members I 

Mr. Vandewark. Not specitically. I reported in the treasurer's 
report to the membership, but not specifically as to that particular 
item. 

Senator Curtis. You never told them what it was used for I 

Mr. Vandewark. No, sir. 

(At this point Senator McClelland left the hearing room.) 

Senator Curtis. Did you report the true facts concerning the cash- 
ing of these checks on the airplane trip and turning the money over 
to whoever you tui'ned it over to, to the members? 

Mr. Vandewark. No, sir. 

Senator Curtis. I have before me here what purports to l>e the 
International Union of Operating Engineers constitution, article 
XXIII, subdivision 2, relates to the powers and duties of officers. 
You are the treasurer, aren't you ? 

Mr. Vandewark. That is right. 

Senator Curtis. Are you under bond % 

Mr. Vandewark. Yes, sir. 

Senator Curtis. You are sujjposed to perform the duties of the 
office as prescribed by the constitution and bylaws; are you not? 

Mr. Vandewark. I am. 

Senator Curtis. Article XXIII, subdivision 3, section (e) : 

It shall be the duty of the treasurer to receive and hold all funds collected 
by the financial secretary and delivered to him ; to give receipt for moneys 
delivered to him ; to make no disbursements without approval of the local union, 
and only upon written order of the president and corresponding secretary ; to 
make an itemized statement and report to the local union at the end of each 
quarter of the condition of his office and of the transactions of his office ; to 
submit his books and accounts for inspection by the trustees when called upon 
by them. 

You have never furnished them any information as to what ac- 
tually hap])ened with this something less than $10,000 and this other 
item of $2,400; have you? 

Mr. Vandewark. Except in a treasurer's report. 

Senator Curtis. But that did not reveal the facts as to what hap- 
pened, how the transactions were handled, or what the money was 
used for? 

Mr. Vandewark. It did not. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7617 

Senator Curtis. In fact, yon have not revealed yet what the money 
was used for ; have you i 

Mr. Vandewark. No. I have no knowledge of what it was used for. 

Senator Curtis. You are without authority to disburse money. 
"And make no disbursements without approval of the local union." 

Did the local union ever approve of this airplane excursion, and 
taking out of their treasury $10,000 and giving most of it to somebody 
who you say you did ? 

Mr. Vandewark. Senator, might I call to your attention that you 
are reading from the international constitution. The local union is 
governed by a set of bylaws which are a little ditlerent. They must 
conform in general to the international constitution. But in the by- 
laws of tlie local union there is some variance in certain restrictions. 

In that particular instance, where you say approved by the mem- 
bershij^, the local bylaws provided approved by the executive board 
rather than the local union. 

(At this point Senator McClellan returned to the hearing room.) 

Senator Curtis. Tlie fact remains that the true happening'with re- 
gard to these transactions was concealed from the membership; is 
that correct ? 

Mr. Vandewark. No ; they weren't concealed from the membership. 

Senator Curtis. You never gave it to them ; did you ^ 

Mr. Vandewark. I gave it to them in a treasurer's report. 

Senator Curtis. But you just told me that that treasurer's report 
did not tell how these transactions were handled or what the money 
was used for ; is that correct ? 

Mr. Vandewark. That is correct. Each disbursement was not read 
specifically. 

( At this point Senator Ives left the hearing room. ) 

Senator Curtis. How much is the amount of your bond ? 

Mr. Vandewark. $30,000. 

Senator Curtis. It looks to me like some of your members ought to 
proceed to make some recovery of their money. It doesn't belong to 
you fellows. 

That is all, Mr. Chairman. 

The Chairman. Is there anything further ? 

Mr. Kennedy. Yes ; I have a few other things. 

This morning we talked about the $10,000 that was used to fight the 
"construction stiffs." When you were in the room this morning we 
were talking about that. Were you aware of that ? 

Mr. VandewiVrk. Yes, sir. 

Mr. Kennedy. You signed the check ; did you not ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. And that was for the purpose of fighting this group 
that was critical of the union leadership ? 

Mr. Vandewark. That is correct. 

Mr. Kennedy. Did you receive any of that money ? 

Mr. Vandewark. I did not, sir. 

Mr. Kennedy. On no occasion ? 

Tell me, first, what happened to the money ? 

Mr. Vandewark. Perhaps if you have any documents there to help 
me refresh my memory 

21243 — 58— pt. 19 8 



7618 IMPROPER AOTn^ITIES IN THE LABOR FIELD 

The Chairman. Start with this one. This is the $10,000 check 
dated January 24, 1955. It shows to have been cashed by you. It is 
made out to "Cash." It is on your locaL It is signed by you, by 
Mathews and Swanson. Can you identify that check, please, sir? 

( Document handed to the witness. ) 

Mr. Vandewark. Yes, sir ; I can. 

The Chairman. That check may be made exhibit No. 45. 

(The document referred to was marked "Exhibit No. 45" for refer- 
ence and will be found in the appendix on p. 7879.) 

The Chairman. What is that check for ? 

Mr. Vandewark, The check is for $10,000, made payable to cash, 
and cashed by myself. 

The Chairman. AVliat did you do with the money ? 

Mr. Vandewark. I turned it over to Mv. Swanson. 

The Chairman. All of it ? 

Mr. Vandewark. Yes, sir. 

The Chairman. "\^^iat was the purpose of the check being issued ? 

Mr. Vandewark. The check was issued in accordance with the reso- 
lution that had been adopted by the membership to fight a group who 
were known as the — well, who were putting out a mimeographed sheet 
called the Construction News Stiff. 

The Chairman. You say the membership had voted ? 

Mr. Vandewark. Yes, sir. 

The Chairman. Why did the original minutes of the meeting not 
show that ? 

Mr. Vandewark. I believe they do, sir. 

The Chairman. Do the records show how much money was to be 
spent ? 

Mr. Vandewark. No; I believe the resolution is silent on the 
amount. 

The Chairman. It is silent on the amount? Does it say it is to 
be spent in cash ? 

Mr. Vandeware. I don't believe it says how it is to be spent, whether 
in cash 

The Chairman. It doesn't say the amount or how it is to be spent. 
All right. You say you didn't get any of that money. You turned 
the $10,000 in cash all at one time over to Mr. Swanson? 

Mr. Vandewark. Yes, sir. 

The Chairman. Do you know anything about how he disbursed it ? 

Mr. Vandewark. I know of how he disbursed some of it ; yes. 

The Chairman. How ? 

Mr. Vandewark. I know that he hired a man and put him on the 
road, seeking information to establish who the people were that were 
putting out this particular sheet. 

The Chairman. Did what ? Hired men and put them on the road 
to what? 

Mr. Vandewark. He hired a man and put liim on the road to try 
to have him determine who was putting out this particular news, the 
Stiff sheet. 

The (^HAiRiNiAN. He did hire a man, you kno\Y that? 

Mr. Vandewark. That is right. 

The Chairman. And he put him on the road to try to find out who 
was putting out the mimeographed sheet? 

Mr. Vandewark. That is right. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7619 

The Chairman. Who was the man? 

Mr. Vandewark. Joseph Reilly. 

The Chairman. Where does Reilly live? 

Mr. Vandewark. I am not sure exactly, but I believe he lives in 
what is known as the East Bav or the Oakland side of San Francisco 
Bay. 

The Chairman. Do yon know him personally? 

Mr. Vandew^ark. Yes, sir. 

The Chairman. When did he get out of the penitentiary? 

Mr. Vandewark. That I do not recall. 

The Chairman. How long had he been out when he was employed 
for this job? 

Mr. Vandewark. That I don't know, either, sir. 

The Chairman. He was sent to the penitentiary for a killing, was 
he not? 

Mr. Vande\vark. That is right. 

The Chairman. You know he had not been out very long had he ? 

Mr. Vandew\\rk. Well. I can only guess, but I would say he had 
been out in the neighborhood of probablv 16 to 18 years. 

The Chairman. That long? 

Mr. Vandewark. Yes, sir. 

The Chairman. Very well. Is he a member of the union? 

Mr. Vandewark. He was and I believe still is. 

The Chairman. At that time? 

Mr. Vandewark. He was. 

The Chairman. In wdiat capacity? Did he have any official ca- 
pacity ? 

Mr. Vandewark. Not at that i^articular time, no, sir. 

The Chairman. ^Mi\f^t job did he have at that time? Do you 
know ? 

Mr. Vandewark. I believe he was unemployed at that time. 

The Chairman. He was unemployed at that time? 

How much money was paid to Keilly ? 

Mr. Vandewark. That I do not know\ 

The Chairman. Did you sign any other checks to cash, to carry 
out this enterprise, this project ? Were there any others in addition 
to the $10,000 one ? 

Mr. Vandewark. I can't recall at the moment, sir. 

The Chairman. Do you know E. L .Garrett? 

Mr. Vandewark. Yes, sir. 

The Chairman. Who is he? 

Mr. Vandewark. He is the bookkeeper and accountant for Operat- 
ing Engineers Local Union No. 3. 

The Chairman. I now present to you a check dated May 24, 1955, 
made payable to cash, in the amount of $1,968.40, signed by you as 
treasurer, and by C. F. Mathews, drawn on your account, local union 
No. 3, and under the term "for,'* it is "Expenses, resolution 12-4-54." 

I ask you to examine that check and see if you are familiar with the 
check and can identify it. 

(Document handed to the witness.) 

Mr. Vandewark. Yes, sir; I can identify the check. 

The Chairman. What is tliat check ? 



".620 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Vandewark. The check is made payable to cash in the amount 
of $1,968.40. It is signed by myself, as treasurer, and cashed by, 
presumably, E. L. Garrett. 

The Chairman. Did you have any voucher for that check, any war- 
rant or anything to substantiate it ? 

Mr. Vandewark. No, sir. 

The Chairman. Is that the money that went to Reilly ? 

Mr. Vandewark . That I couldn't say. 

The Chairman. Don't vou know Reilly was paid with that money, 
and that was in addition to the $10,000 ? 

Mr. Vandewark. I wouldn't know, sir, because I did not handle 
those transactions. 

The Chairman. Actually the checks are dated the same day, are 
they not, each of them, for cash. The $10,000 one, and this one? 
Aren't they of the same date ? 

Mr. Vandewark. I would have to see the previous one, sir, and com- 
pare them. 

The Chairman. Show him the previous one and let him compare 
them. 

(Document handed to the witness.) 

Mr. Vandewark. Yes, sir, they are made on the same date. 

The Chairman. They are made on the same date ? 

Mr. Vandew^^rk. No; I am sorry. I withdraw that. The $10,000 
check is dated January 24, 1955. The check that you are questioning 
about is drawn May 24, 1955. 

The Chairman. May 24, 1955 ? 

Mr. Vandewark. Yes, sir. 

The Chairman. That is after Eeilly had performed his work? 

Mr. Vandewark. That I can't recall, sir. 

The Chairman. At any rate, you have no voucher or anything to 
substantiate that one, other than the fact you say there it is expenses in 
connection with the resolution upon wdiich the other check is based? 

Mr. Vandewark. That is all it says on the check, sir. 

The Chairman. Do you have any personal recollection of that 
transaction ? 

Mr. Vandew^^rk. No, sir. 

Tlie Chairman. Do you have any personal recollection of the other 
transaction involving the $10,000? 

Mr. Vandewark. None except what I have testified to here in cash- 
ing the check and cariying the money over to Mr. Swanson. 

The Chairman. All right. You say you didn't get any of this 
$10,000. You personally didn't get any of it? 

Mr. Vandewark. Not that I can recall, sir. 

The Chairman. Did you file any statement of expenses to draw 
some money out of that fund ? 

Mr. Vandewark. Not that I can recall, except if you have some- 
thing that can refresh my memory, if you have any documents to show 
that I did 

The Chairman. Did you do any work on that project for which you 
submitted a bill? 

Mr. Vandew^\rk. I don't know w^hether I submitted a bill or not. I 
did some work on it. 

The Chairman. What kind of work did vou do? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7621 

Mr. Vandewark. Considerable, in trying to find out who tlie people 
were. 

The Chairman. How did you go about it ? 

Mr. Vandewark. By asking questions in various areas where I was 
recalled to go on business for the union. 

The Chairman. It is pretty expensive to ask questions; isn't it? 
Did you travel any ? 

Mr. Vandewark. Yes, sir. 



The Chairman. Where did you go 



Mr. Vandewark. Many places, sir. 

The Chairman. Name them. 

Mr. Vandewark. Eureka. 

The Chairman. Eureka 

Mr. Vandew^'lRk. California. 

The Chairman. All right. 

Mr. Vandewark. Salt Lake City. 

The Chairman. Where else? 

Mr. Vandewark. I can't recall at the moment where else. 

The Chairman. Did you submit any bill for your expenses on tliose 
trips i' 

Mr. A'andewark. Yes, sir. 

The Chairman. Who did you submit it to t 

Mr. Vandew^ark. I submilted an itemized statement to Mr. Swan- 
son. 

The Chairman. Did he reimburse you ? 

Mr. Vandewark. Yes, sir, I believe he did. 

The Chairman. How did he reimburse you \ 

Mr. Vandewark. If I recall correctly, sir, I believe he reimbursed 
me in cash. 

The Chairman. In cash. Do you have any idea how much it 
amounted to ? 

Mr. Vandew^ark. I am not sure, but I believe it was somewhere 
in the neighborhood of $3,000. 

The Chairman. Somewliere in the neighborhood of $3,000. How 
do you spend that $3,000 ? 

Mr. Vandewark. In various w^ays. 

The Chairman. That is sufficient to start with. Xow will you 
go a little further and explain t]ie various ways I 

I do not want to wait too long. Can you give me any idea ? 

Mr. Vandewark. I am trying to refresh my own memory. After 
all, 3 years, to remember specifically what 3^011 performed and did 
3 years ago 

The Chairman. You were after the '"construction stiffs." You 
know you were engaged in that project. 

Mr. Vandew^ark. I had been after the "construction stiffs'" for sev- 
eral years before that, sir. That is why I find it difficult at the 
moment. 

The Chair3IAn. How many years before ? 

Mr. Vandevn^ark. I believe for a period of about 7 or 8 years pre- 
vious to that. 

The Chairman. Had you submitted any previous bills for reim- 
bursement of your expenses for the "construction stiff" investigation? 



7622 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. VandeWxVEk. No, sir; because in the early instances of the 
"construction stitl"" newsletter I happened to be one of the particular 
targets of the little piece of literature. 

The Chairman. You were a target of it ? 

Mr. Vandewaek. Yes, sir. 

The Chairman. All of you officers were targets, were you not? 

Mr. Vandew^ark. Not in the beginning. 

The Chairman. Not in the beginning? 

Mr. Vandewark. No, sir. 

The Chairman. They started after you first ? 

Mr. Vandewark. They started after I and one other individual. 

The Chairman, Who is he ? 

Mr. Vandewark, Otto Never. 

The Chairman. Where is he now ? 

Mr. Vandewark. He is the business representative for local No. 5 
in Honolulu. 

The Chairman. They have not been able to get you out yet; have 
they? 

Well, I will hand you a little document here. It does not seem to 
be addressed to anyone. I would like you to examine it and state 
whether you identify it. 

( Document handed to the witness. ) 

The Chairman. The last check presented may be made exhibit 
No. 46. 

(The document referred to was marked "Exhibit No. 46" for ref- 
erence and will be found in the appendix on p. 7880.) 

Mr. Vandewark. Yes, sir. 

The Chairman. ^Vliatisit? 

Mr. Vandewark. It is a general itemized statement of expenses 
spent by myself for a period of from January through May of 1955. 

The Chairman. For how much? 

Mr. Vandewark. In the amount of $2,763. 

The Chairman. $2,763. 

Mr. Vandewark. Yes, sir. 

The Chairman. You say it is a general itemized statement. There 
is nothing specific in it except the names of towns and months; is 
that correct ? 

Mr, Vandewark, That is correct. 

The Chairman. Where did vou show vour expenses to Eureka, 
Calif.? 

Mr. Vandewark. I apparently didn't. 

The Chairman, Are you sure you went to Eureka ? 

Mr, Vandewark, I went to Eureka several times, sir. 

The Chairman. On this business ? 

Mr. Vandewark. Yes, sir. 

The Chairman, Why didn't you submit a statement for your ex- 
penses to Eureka ? 

Mr, Vandewark. When you say "On this business,'' sir, are you 
referring to this particular expense thing we are discussing here ? 

The Chairman. Yes. I have ben referring to it all the time. 

Mr, Vandewark. Well, I was also referring to the investigation of 
the "construction news stiffs" over a period of several years, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7623 

The Chairman. You were going way back? I am talking about 
that that you got expenses for. You didn't go to Eureka, then, but 
only 

Mr. Vandewark. Apparently during that time, sir. 

The Chairman. You did go to Eureka, then, during the time that 
you were getting paid, getting reimbursed ^ 

Mr. Vandewark. No, sir; apparently not. 

The Chairman. I thought maybe you had someliow failed to take 
care of all of your expenses. Maybe you should submit another bill. 
But if you say that might have been at some other time when you 
were not getting paid, that is it. 

What other vouchers can you produce, other than that one and the 
one of Mr. Pat Clancy ? Do you know of any others ? 

Mr. Vandewark. I do not recall of any others, sir. 

The Chairman. You don't recall any others ? 

Mr. Vandewark. No, sir. 

The Chairman. These receipts and vouchers were simply filed as a 
part of the union records, is that correct? 

Mr. Vandewark. They were turned over to Mr. Swanson. 

The Chairman. These were turned over to Mr. Swanson ? 

Mr. Vandewark. Yes, sir. 

The Chairman. Well, properly, they would be a part of the union 
records, would they not, if there w^as union money spent for it? 

Mr. Vandewark. It could be, sir. 

The Chairman. Is there anything else ? 

Senator Curtis. Mr. Vandewark, you have listed here for Sacra- 
mento for January, February, and April of 1955, $1,381. During 
that time did you draw any other expense money from the union for 
your trips or maintenance in Sacramento other than from this par- 
ticular fund ? 

Mr. Vandewark. I believe I did, sir. 

Senator Curtis. Now, as to Salt Lake City for February and 
March of 1955, $860. Did you draw any other travel and mainte- 
nance expense money for visiting Salt Lake City at that time, other 
than this $860 shown here ? 

Mr. Vandewark. I believe I did ; yes, sir. 

Senator Curtis. And it says at Eeno, for April and May, $522. 
Did you draw any expense money for travel and maintenance out of 
other union funds other than this $522 for visiting Reno in April 
and May? 

Mr. Vandewark. I believe I did, sir. 

Senator Curtis. Then, as a matter of fact, you were paid for 
making these trips through the regular method of handling union 
funds, were you not ? 

Mr. Vandewark. No, sir ; not for those. 

Senator Curtis. Not for those ? 

Mr. Vandewark. Those that are listed on the sheet you have in 
front of you. 

Senator Curtis. I misunderstood your answers to the other ques- 
tions, then. 

Mr. Vandewark. You apparently did. 

Senator Curtis. I understood you to say that you did draw ex- 
penses from other union funds for these same trips. 

Mr. Vandewark. I said I believe I did. 



7624 IMPROPER ACTIVITIES! tv ■ i^l LABOR FIELD 

Senator CVktij-. What was this $1,381 used for in Sacramento? 

Mr. X'ANDEWARK. JVIost of that money was used, sir; at that time 
a measure was before the California body, a so-called right-to-work 
movement had been started. At that time the "anti" forces were busy 
there, and that money was spent in tlie city of Sacramento which 
happens to be the capital of California where the legislative bodies 
met. 

Senator Curtis. Then this was not used on this activity of fighting 
the "construction stiffs" ? 

Mr. Vandewark. Not entirely, no, sir. There were antiunion 
forces also. 

Senator Curtis. How about this $860 in Salt Lake City. What 
was that used for ? 

Mr. Vandewark. For exactly the same purpose, and there now 
exists on the statute books of the State of Utah a right-to-work law. 

Senator Curtis. So this money gotten out and turned over to Mr. 
Swanson, and then some of it coming back to you, was not all used 
then for the fight against the "construction stiffs" ; is that right ? 

Mr. Vandewark. It was used for a fight against antiunion move- 
ments, and not exactly the "construction stiffs" alone, no, sir. 

Senator Curtis. Well now, the "construction stiffs" were not anti- 
union, w^ere they ? 

Mr. Vandewark. Apparently they were. They were trying to dis- 
rupt and disorganize the organization. 

Senator Curtis. They wanted new officers, did they not? 

Mr. Vandewark. No. 

Senator Curtis. Did they not want a change of officers? What 
did they complain of in their literature ? 

Mr. Vandewark. Many things. 

Senator Curtis. What did they complain of ? 

Mr. Vandewark. They complained the size of the organization 
and they complained of the officers, and they complained of the con- 
tracts that the local union had wnth the contractor associations, 
and they complained of the acts of individual officers and individual 
members. 

Senator Curtis. And anything else? None of that makes them 
antiunion, does it? Wliat they wanted was new management in the 
miion, was that not right ? 

Mr. Vandewark. They wanted more than that. 

Senator Citrtis. That is all, Mr. Chairman. 

Senator Goldwater. Mr. Vandewark, could you identify more spe- 
cifically who this group was that you called "construction stiffs"? 

Mr. Vandewark. Well, Senator, I woidd answer your question in 
this manner : During the time that Mr. Swanson was under Federal 
indictment, I collaborated with the FBI in the furnishing of name^ 
of individuals whom I believed were responsible for the edition of 
the "construction stiffs" news. To this day I have no pereonal knowl- 
edge who those particular individuals are. 

I can only say that it is a suspicion, and nothing more. 
Senator Goldw^ater. Did you ever find out who they were then, 
during all of your investigation and all of the money you spent on it? 
Mr. Vandewark. I found out who some of them were and not all 
of them. 

Senator Goldwater. Was it a large segment of your union? 



IMPROPER ACTIVITIES IN THE L.\BOR FIELD 7625 

Mr, Vandewark, No, a very small segment. 

Senator Goldwatp:k. What were their specific charges against the 
union ? 

Mr. Vandewariv. That the union was undemocratic. 

Senator Goldwater. Before we go to the next one, would you agree 
with them on that, now that you think back ? 

Mr. Vandewark. I do not know whether I would agree with them 
or not. 

Senator Goldwater. Well, for instance, this morning testimony 
w^as given to the effect that this $9,500 was used for political purposes, 
internal politics of the union. It was clearly established at least in 
my mind, that this money, dues money of the members, was going to 
support particular candidates who were obviously the choice of those 
in power. 

Now, is that a democratic process ? 

Mr. Vandewark. Well, I assume it could be because the same 
policies are practiced by both the Republican and Democratic parties. 

Senator Goldwater. We are getting into a different thing. The 
Democratic and Republican Parties are voluntary organizations and 
you do not have to belong to them and you do not have to pay dues 
to belong to them, but you have to belong to a union in many cases 
to have work and you have to pay dues. 

Forget national and local politics and we are talking about demo- 
cratic processes. Is it right in your mind now as you think back, 
to have used dues money to back candidates w^ithout consulting the 
membership at large as to their choice of candidates? 

Mr. Vandewark. Senator, a union is in the same condition as either 
the Republican or Democratic Party. It is a voluntary organization 
and you do not have to belong. 

Senator Goldwater. That is not the way the Taft-Hartley law 
reads. 

Mr. Vandewark. I was going to say, with the exception of what 
the Taft-Hartley law provides. 

Senator Goldwater. That is the governing law in labor-manage- 
ment relations and you have to belong where there is a bargaining 
agreement and you know that as well as I do. 

Mr. Vandewark. That is right. 

Senator Goldw^vter. It is not a voluntary organization. Now, what 
else did they complain of ? 

Senator Curtis. Before you leave that democratic process, would 
you yield for one question. 

Would you say that the way that Mr. Swanson ran this local union, 
that it was democratically run ? 

Mr. Vandew^ark. No, I would not say it was democratically run 
under his administration. 

Senator Curtis. That is what the "construction stiffs" said, too ; did 
they not ? 

Mr. Vandewark. That is correct. 

Senator Goldw^vter. What other charges did the "construction 
stiffs" make ? 

The Chairman. After all of the money you spent and all of the 
exercise you took in this aft'air, can you not think faster than that 
about the accusations made against you ? I want to give you all of the 



7626 IMPROPER ACTIVITIES IN THE LABOR FIELD 

time, but we have gotten down to slow motion here. Let ns move along 
a little. 

Mr. Vandewark. Senator, let me say this, that I can think, and 
think quite fast, but I hope to choose my words so that they may not 
be misinterpreted by the committee. 

The Chairman. We do not want to misinterpret anything and I 
will give you time to choose your words, but surely you can think. It 
took 10 minutes here to get "undemocratic processes" out of you, when 
you finally admitted you knew it was being run undemocratically. 

Now, go ahead, but let us move along. 

Mr. Vandewark. Well, one of their serious complaints was that 
they felt that certain districts should have preference over others, as 
far as the collective-bargaining agreements were concerned. 

The collective-bargaining agreement in the instance they were com- 
plaining of was the northern California agreement with the Associated 
General Contractors. They thought certain areas should be given 
special treatment, whereas the whole area of northern California was 
treated as one. 

Senator Goldwater. Did you ever give those recommendations any 
consideration in your meetings ? 

Mr. Vandewark. They were argued many times in the regular 
meetings of the union. 

Sentor Goldwater. And the "construction stiffs" were allowed to 
stand up in the meetings and voice their complaints ? 

Mr. Vandew^^rk. That is correct. No man was ever denied the op- 
portunity of speaking to the floor. 

Senator Goldwater. Were there any other complaints that they 
made ? 

Mr. Vandewark. Yes, sir, they objected to my participation m a 
small water company in Crescent City, Calif. 

Senator Goldwater. Why did they object to that? 

Mr. Vandewark. They believed that a local union officer had no 
business in any other business except the union and that only. 

Senator Goldwater. Was there any union money ever used in this 
water company ? 

Mr. Vandewark. No, sir. 

Senator Goldwater. There was no union money used to rehabilitate 
it or fiix it up ? 

Mr. Vandewark. No, sir. 

Senator Goldwater. Now, I have a copy of this "construction 
stiffs" news and I will read another charge in here and ask you if it 
is substantially correct or correct at all. One paragraph says : 

The Governor should be told that if he continues to fool around with the 
Operating Engineers, beginning with Victor Swanson, he will very soon be 
associating with people who very definitely are not nice people. For, coupled and 
associated with the Delaneys, DeKonings, and Maloneys and the Fays and 
others in the past, are confreres Never, Vandewark, Clem, and Ed Doran and 
his brother Vern (accomplice in the Eagan murder case), known as Joe Riley. 

Would that charge be true, that you have associated with these peo- 
ple, particularly Mr. Fay ? 

Mr. Vandewark. To my knowledge, I only saw Mr. Fay once in 
my life. 

Senator Goldwater. How about the othere ? 



IMPROPER ACTI^^ITIES IN THE LABOR FIELD 7627 

Mr, Vandewark. Mr. Maloney, who is general president of the In- 
ternational Union of Operating Engineers, I have associated with 
many times. 

Senator Goldwater. After you investigated these "construction 
stiffs," whatever happened as a result of the investigation ? 

Mr. Vandewark. Well, Senator, let me answer the question in this 
manner, that the result of the investigation was not as planned but 
the investigation did bring about a Federal indictment of Mr. 
Swanson. 

The Chairman. Before we go to some other subject matter, the 
Chair wishes to make as exhibit No. 47 the statement of expense sub- 
mitted by Mr. Vandewark, Avhich he has previoiLsly identified. 

(The document referred to was marked "Exhibit No. 47" for 
reference and will be found in the appendix on p. 7881.) 

The Chairman. All right, Mr. Vandewark, I present to you an- 
other check dated March 12, 1956, in the amount of $21,000 made 
payable to cash, drawn by you and Mr. Mathews and countereigned 
by Mr. Swanson. I will ask you to examine this check and see if you 
identify it. 

(A document was handed to the witness.) 

Mr. Vandewark. Yes, sir ; I can identify it. 

The Chairman. All right, the witness identifies the check and it 
will 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 p. 7882.) 

The Chairman. Tell us what that check is for. First tell me who 
endorsed it and got the money. 

Mr. Vandewark. I did. 

The Chairman. You endorsed it and got the money? 

Mr. Vandewark. I did not get the money on it. 

The Chairman. You initially got it when you endorsed the check, 
and you cashed the check, did you ? 

Mr. Vandewark. I turned the check in to American Trust and got 
two cashiers checks for it. 

The Chairman. Then instead of getting money you got two cashiers 
checks ? 

Mr. Vandewark, Yes, sir. 

The Chairman, Is that correct? 

Mr, Vandewark, That is right. 

The Chairman, I present to you the two photostatic copies now, 
of the two cashiers checks you got — one in the amount of $18,459 
made payable to Ken Garff Co,, and another one in the amount of 
$2,477 made payable to Ken Garff Co,, cashiers check on the American 
Trust Co, Bank, and each of them are dated March 12, 1956, 

One is No, 7008 and the other is No, 7009. I will ask you to ex- 
amine those photostatic copies of checks and state if you identify 
them. 

(Documents w^ere handed to the witness.) 

Mr. Vandewark. Yes, sir ; I do. 

The Chairman, Are those the cashiers checks that you got in lieu 
of the $21,000 check that I presented to you a moment ago? 

Mr. Vandewark. Yes, sir. 

The Chairman. Did you get $64 in cash in addition to the two 
checks ? 



7628 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Vandevvakk. Yes, sir. 

The (Chairman. Tliat makes a total of $-21, ()()(). 

Mr. Vandewauk. Tliat is correct. 

The Chairman. Those two cliecks will he made exliihits 49 and 50. 

(The documents referred to were mai-ked "Kxhihits Nos. 41) and 
50" for reference and will be found in the ai)j)endix on ])\). 778;}-77HG.) 

The Chairman. Who endor-sed those cashier's checks ? 

Mr. Vandewahk. Ken (iarif Co., Salt Lake C'ity. 

The Chairman. Both ol" them !• 

Mr. Vandewahk. Yes, sir. 

The Chairman. All ri<rht, Mr, Kennedy, you may proceed, 

Mr, Kennedy, What is the Ken (irarir Co, ^ 

Mr. Vandewark. They are the Oldsniohile dealer's in the city of 
Salt Lake. 

Mr. Kennedy. What were those checks used for? 

Mr. Vandewark. One clieck whicli is No. 7()0S in tlu^ amount of 
$18,459 was used for- the pui-cliase of 7 Oldsmohile cars. 

Mr. Kennedy. How many!? 

Mr. VandewarvK. Seven of them. 

Mr. Kennedy. To whom did those seven Oldsmohile cars go? 

Mr. Vandewark. To business representatives of local No. 8. 

The Chairman. Can you name them ? 

Mr. Vandewark, Mr. ( 'hairman, I lind it impossible to do because 
we have 54 automobiles. 

The Chairman. Tliey were bou<rht foi- use of some of youi- busi- 
ness agents? 

Mr. Vandewark. That is correct. 

Mr. Kennedy. Then you say that was for 7 automobii(5s, and tliat 
amounted to a little over $18,000. What happened to the rest of the 
money ? 

Mr. Vandewark. The rest of the money, the other cashier's check 
went for a payment of an Oldsmohile Iloliday coupe, standard, 
which I purchased for my son, for his 20th birthday. 

Mr. Kennedy. The rest of the money, some $2,500 of union funds 
was used to buy an automobile for your son's birthday ? 

Mr, VandewaPvK. $2,477, Mr. Keiniedy. 

Mr. Kennedy. It was used to buy an automo}>ile, an Oldsmohile, 
for your son's birthday? 

Mr. Vandewark. Yes, sir. 

Mr. Kexxkdy. Did the union vote to giveyoui- son a birthday pi'(!S- 
ent of an Oldsmohile ? 

Mr. Vandp2Wark. Tlie union had nothing to do with this, sir. I 
turned over to Mr. Swanson $2,477 of my own per-sonal money, plus 
the $64, the remainder of the $21,000" after I obtained the two 
cashier's checks. 

Mr. Kennedy. You did what? You turned over to him in cash 

Mr. Vandewark. I turned over to Mr. Swanson $2,477 in cash plus 
the $64 that was the remainder of the $21,000 after the purchase of 
the 2 cashier's checks. 

Mr. Kennedy. AVliy did you handle that transaction in that fashion, 
Mr. Vandewark? 

Mr. Vandewark. I don't know. It was rather foolish, I will admit. 

Mr. Kennedy. Do you have any evidence at all that you did tiiiji 
over $2,400 to Mr. Swanson ? 



IMPROPER activitip:,s in the labor field 7629 

Mr. Vandewark. No evidence except my word, that's all. 

Mr. Kknneoy. You are the treasurer and is that the best way you 
could think of handling this transaction? Couldn't you have given 
him a check or made a check out to the union, either one of those 
possibilities? 

Mr. Vandewark. Mr. Kennedy, I just got through saying it was 
rather a foolish manner in whicli to handle a transaction and I don't 
know what more answer you can expect. 

1'lie Chairman. Let me ask you something else. "VVliere do you live ? 
In California? 

Mr. Vandewark. Yes, sir. 

The Chairman. You go down there to Salt Lake City and you 
buy a birthday present for your son, an automobile, paying over 
$2,400 for it, and you have the union issue you a check for cash to 
get enough money to do that. 

Now, if you had the cash in your pocket, why did you have the 
union issue a check for cash so you could get enough money to do 
that and then you give the money back to Swanson? 

Mr. Vandewark. That is what should have been done. It wasn't. 

The Chairman. What did Swanson do with the money ? 

Mr. Vandewark. I don't know. 

The Chairman. Did it ever get back into the union ? 

Mr. Vandewark. No, sir. 

The Chairman. You were treasurer, were you not ? 

Mr. Vandewark. That's right. 

The Chairman. You had a duty toward its funds, did you not? 

Mr. Vandewark. That's right. 

The Chairman. You let $2,477 get away from the union by this 
sort of a transaction, so you get a car for your son, and so Swanson 
could g(it $2,477 of union nioncy out; is lha( right? 

Mr. Vandewark. Apparently, it is tlie way it looks. 

'i'he Chairman. It certainly looks that way. Do you have any other 
explanation of it? 

Mr, Vandewark. No, sir. 

The Chairman. Thank you. 

Senator Cuims. Where* did you secure the $2,400 that you turned 
over to Swanson t 

Mr. Vandewark. Whci'cdid 1 procure it? 

Senator (Juiriis. Yes. 

Mr. Vandewark. Part of it fiojn my savings account and part of 
it fr(jm winnings that I had made in tlie city of Reno, gambling. 

Senator (Jiiin IS. What was the iiiime of the savings bank? 

Ml-. Vandewark. The American Ti'ust Co. 

Senator ( Jurtis. Wliere was it located ? 

Mr. Vandewark. In San Francisco. 

Senatoi- Curtis. What is the address ? 

The ('iiAiRMAN. It is in tlie same block as \ he union head(|Uiirters. 

Senator Curtis. 1 luive never b(;en there. 

Mr. Vandewark. IGIO Valencia Street. 

S(^nator (yiiRjis. IFow nnich did you di-aw out of there? 

Mr. Vandewark. I believe thai \ willidi-ew $1,000. 

Senator (yURTis, What date did you draw it out ? 

Mr. Vandewark. I can't recall, sir. 

Senator CuRi'is. Do you have '\i ? 



7630 IMPROPER ACTIVmES IN THE LABOR FIELD 

Mr. Kennedy. It is February 14, and he withdrew the money on 
February 14, Senator, $1,000. That is approximately a month before 
this transaction went through. 

Senator Curtis. You drew it out knowing this transaction was 
going to go through ? 

Mr. Vandewark. Pardon me. 

Senator Curtis. You drew it out knowing this transaction was go- 
ing to go through ? 

Mr. Vandewark. Yes, sir. 

Senator Curtis. And the $1,400 was winnings in Reno I 

Mr. Vandewark. $1,250, sir, was the winnings in Reno. 

Senator Curtis. Did you report the $1,250 in your income tax % 

Mr. Vandew^vrk. No, sir ; because I had a loss during the year. 

The Chairman. You also had that gain. Did you add this to the 
gain so you could take the loss from the total gain ? 

Mr. Vandewark. I believe that my income tax so reflects; I believe 
it does. 

The Chairman. It can be easily checked. 

Proceed. 

Senator Mundt. As treasurer of the local No. 3, are you a bonded 
official ? 

Mr. Vandewark. Yes, sir, Senator, I answered that question previ- 
ously to your coming in. 

Senator Mundt. I did not hear the question because I was not here, 
but I would like to know. If this has been asked before, the answer 
would also be in the record. 

Did the union take recourse to the bonding company for the $2,400 
that it obviously lost on this automobile transaction ? 

Mr. Vandewark. There has been no action taken, sir. 

Senator Mundt. Why not ? If there is a loss to the union the pur- 
pose of the bond is to protect tlie union, is it not ? 

Mr. Vandewark. That is correct. 

Senator Mundt. Why do they not take action? Whose responsi- 
bility is it, if not yours, to instigate the action. You know the union 
lost the money. Why did you not take action ? 

Mr. Vandewark. There has been no action taken, sir, and why I 
can't answer. 

Senator Mundt. Let us break the questions doAvn in bits and parts. 
Is it your responsibility to initiate the action and if not, whose re- 
sponsibility is it? 

Mr. Vandewark. I believe under the constitution it is part of my 
responsibility and not entirely, I believe. 

Senator Mundt. Who shares it with you? 

Mr. Vandewark. If I am not mistaken, the other officers or consti- 
tutional officers. 

Senator Mundt. Is Mr. Swanson one of those ? 

Mr. Vandewark. He is not a constitutional officer as such. 

Senator Mundt. Is he one who shares the responsibility ? 

Mr. Vandewark. He does, or he did as local union manager. 

Senator Mundt. Of course we could eliminate him. He would not 
initiate the action because he got the money and this would get him 
in trouble with the bonding company, so we know why he did not do it. 
Why did you not do it ? You tell us that your hands are clean and 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7631 

your job is to protect the money collected from the hard-working mem- 
bers of the union ; is that not right ? 

Mr. Vandewark. That is correct. 

Senator Mundt. That is why they have a treasurer. Through your 
carelessness or duplicity, $1,200 disappears, and we are going to con- 
sider it carelessness for the moment, but you compound the careless- 
ness when you failed then, to take action in order to get the money 
back to these members who have to pay dues from their paychecks to 
su]D])ort the union. 

Theoretically that is to maintain better working conditions or main- 
tain a strike fund or maintain a pension fund, and certainly not just 
to maintain a Roman holiday for a bunch of union officers to use in 
purchasing cars, and making withdrawals of accounts for gambling 
ventures down in Reno or anywhere else. That is not one of the 
purposes of this money so I return to my question : 

I am perfectly willing to accept your explanation thus far that it 
was carelessness when you originally took the money but why have 
you not instigated action to get it restored ? 

Mr. Vandewark. Well, I would still say it is a neglect of duty in not 
doing so. 

Senator Mundt. By you ? 

Mr. Vandewark. That is correct. 

Senator Mundt. Because if your story is correct, then Mr. Swanson 
should have returned the money to the treasury ; is that not right ? 

Mr. Vandewark. That is right. 

Senator Mundt. Which he did not do. 

Mr. Vandewark. Yes, sir. 

(At this point the following were present: Senators McClellan, 
Goldwater, Mundt, and Curtis.) 

Senator Curtis. Who was with you when you made the $1,250 
winning in Reno ? 

Mr. Vandewark. My wife. 

Senator Curtis. Anybody else ? 

Mr, Vandewark. No, sir. 

The Chairman. Mr. Vandewark, what is your son's name ? 

Mr. Vandewark. Wallace. 

The Chairman. How old is he ? 

Mr. Vandewark. He will be 22 on April 6, 1958. 

The Chairman. Did you take out registration on this car last 
year, 1957? 

Mr. Vandew^4rk. Yes, sir. 

The Chairman. In whose name ? 

Mr. Vandewark. The car is still registered in my name. 

The Chairman. Still in your name ? 

Mr. Vandewark. Yes, sir. 

The Chairman. This is the registration certificate, is it ? 

Mr. Vandewark. That is the registration certificate I furnished 
the committee, yes, sir. 

The Chairman. That may be made exhibit No. 51. 

(The document referred to was marked "Exhibit No. 51" for refer- 
ence and will be found in the appendix on p. 7787.) 

The Chairman. It is a little strange to me that you keep it in your 
name with a boy 21 years old. 

Mr. Kennedy. You withdrew the $1,000 on February 14 ? 



7632 IMPROPER ACTIVITIES IN THE Lu\BOR FIELD 

Mr. Vandewark. I believe that is the date. 

Mr. Kennedy. And the cars were not purchased until March 12 ? 

Mr. Vandewark. The cars were paid for on March 12. 

Mr. Kennedy. Do you know what day the cars were ordered ? 

Mr. Vandewark. The cars were ordered previous to that date. I am 
not sure. 

Mr. Kennedy. The cars were ordered on March 9. 

Mr. Vandewark. The purchase orders were written up on March 9. 
Negotiations had been in progress prior to that time. 

Mr. Kennedy. Will you tell the committee, if the reason for with- 
drawing the $1,000 in cash was to pay for the cars, why did you with- 
draw it back on February 14 ? Do you have any answer to that ? 

Mr. Vanderwark. I am trying to think of the reason why I did it. 
I can't recall at the moment why it was done at that particular time, 
no, sir. 

Mr. Kennedy. The story just does not seem to make any sense. Did 
you know at that time that you were going to win the difference in 
gambling on March 5 ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. You did not know. "WHiere were you going to gt'f 
the dift'ei'ence in money ? 

Mr. Vandewark. From my wife, Mr. Kennedy. 

Mr. Kennedy. She was going to turn it over to you ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. And you won the difference in gambling instead ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Why didn't you just write a check at that time? 
Once you had won the money on March 5, as you say, and you had the 
$1,000 on Feln-uary 14, why didn't you write a check for the purchase 
of the automobile ? 

Mr. Vandewark. Because the money wasn't put in the bank. 

Mr. Kennedy. Then why didn't you put it in the bank and write a 
check, or why didn't you write a check for a lesser amount for the 
union? You wrote the union check for $21,000. All you needed 
from the union was $18,000, or $18,500. Why didn't you just write 
on the union check $18,500, and put the rest of the money in of your 
own ? 

Mr. Vandewark. Mr. Kennedy, all checks were written on the in- 
structions of one person. Mr. Swanson directed how all checks should 
be made. 

Mr. Kennedy. This is including a car for Mr. Vandewark. 

Mr. Vandewark. That is correct. I will withdraw that. It wasn't 
correct. It wasn't including the car for Mr. Vandewark. Mr. Vande- 
wark had the money to pay for the car himself. 

Mr. Kennedy. But the $21,000 purchased an extra car. The extra 
car was for you. 

Mr. Vandewark. That is correct. 

Mr. Kennedy. You didn't have to make out a check for the whole 
$21,000. 

Mr. Vandewark. No, sir. I said it was a foolish transaction before. 

jSIr. Kennedy. I want to get an explanation as to why you just didn't 
mnlve out a check for $18,500 and fill in the rest with your own money. 

Mr. Vandewark. Mr. Kennedy, I just got through telling you that 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7633 

Mr. Swanson directed tlie check to be made out in the amount of 
$21,000. Just a moment. If you will, please, let me finish my state- 
ment. 

Mr. Kennedy. All right. 

Mr. Vandewark. I was to obtain a cashier's check in the amount 
of eighteen-thousand-four-hundred-and-some-odd dollars, and to re- 
turn to him the remainder in cash. 

Mr. Kennedy. For what reason ? 

Mr. Vandewark. Following his instructions. That is the man di- 
recting me to do so, and I went and did it. 

Mr. Kennedy. This just does not make any sense at all, Mr. Vande- 
wark. 

Mr. Vandewark. Apparently it doesn't to you, but it does to me. 

The Chairman. You are about the only one it makes any sense to. 
Proceed. 

Mr. Kennedy. Let me ask you about another item. 

The Chairman. What I cannot understand is this : Swanson telling 
you to make out a check on union funds, telling you to buy yourself a 
car, and you doing it as treasurer. It makes sense that if the union is 
only going to get 7 cars, that is all you should have written the 
check for. 

I do not understand why Swanson would be interested in having you 
write the check for an additional amount to purchase you a car and 
then have you give him the cash for your car, except that it was to get 
this money out of the union treasury and away from the boys who did 
the work and paid the dues. You were a party to it, and you were 
bound to have been, as treasurer of that union. If you knew that was 
the way it was to be handled, you were a party to it, and knew at the 
time that it was wrong ; didn't you ? 

Mr. Vandewark. Yes, sir ; I knew it was wrong. But I think if you 
will look at the warrant which accompanied that $21,000 check, you 
will find attached thereto 7 orders for automobiles which totals $21,000. 

The Chairman. That is correct. You even wrote a warrant out 
for the seven cars. 

Mr. Vandewark. Attached to that warrant, sir, were the purchase 
orders for seven automobiles. 

The Chairman. It says seven cars on the warrant. 

Mr. Vandewark. Attached to that warrant, sir, were the purchase 
orders for the 7 automobiles, totaling $21,000. 

The Chairman. It is first made out for six cars. Here is the war- 
rant. Look at it and see if you identify that warrant. 

(The document was handed to the witness.) 

The Chairman. Wasn't it first made out for six cars on the type- 
writer ? 

Mr. Vandewark. Yes, sir. 

The Chairman. And that is stricken out by pen or pencil, the 6 
cars, and there is inserted the 7 cars. 

Mr. Vandewark. That is correct. 

The Chairman. Did you make that change ? 

Mr. Vandewark. No, sir. 

The Chairman. Did you sign that warrant ? 

Mr. Vandewark. No, sir. 

21243— 58— lit. 19 9 



7634 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. But the warrant was originally made out for six 
cars for the union. That is correct, isn't it ? Then it was changed to 
make it 7 cars, so as to justify issuing the check for the $21,000. Is 
that correct ? 

Mr. Vandewark. As I told you. Senator 

The Chairman. That is correct, isn't it? It shows that on the 
face of it? 

Mr. Vandewark. It shows on the face of it that it was originally 
written for 6 and then changed to 7. AVhether it was prior to the time 
the warrant was signed or afterward, I have no knowledge. 

The Chairman. O. K. 

Mr. Kennedy. I hate to add confusion to this, Senator, but actually 
eight automobiles were ultimately purchased. The union got the 
seven and Mr. Vandewark got the eighth. He is the one that wrote 
the check, went across tlie street and got the two cashier's checks. 

The Chairman. That makes it worse. The warrant was for only 
7 cars, and the check was for 8. 

Mr. Kennedy. Yes. 

The Chairman. The check was for one more car tlian the warrant 
called for. 

Mr. Kennedy, That is correct. 

Senator Goldwater. Sometliing here puzzles me. I am confused. 
You say that Mr. Swanson ordered you to write the check for $21,000? 

Mr, Vandewark. No, sir, I didn't say that. He directed a check to 
be made, and the check was brought in for my signature. 

Senator Goldwater. All right. He knew that the 7 cars for the 
union were going to total $18,500, How did he know about your de- 
sire to have a car ? 

Mr. Vandewark. How did he know about my desire to have a car? 

Senator Goldwai'er. Yes. 

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

Mr. Vandewark. During the progress of negotiations for the auto- 
mobiles, which were picked up at the factory, wdien I discovered the 
amount of money that could be saved by driving a car from the fac- 
tory, I discussed it with my wife and we decided to buy my son, by a 
previous marriage, this automobile. I told Mr. Swanson while he 
was ordering the cars for tlie union, to tell the company that I wished 
a car for myself. 

Senator Goldwai'er. Why did Mr. Swanson include your car in the 
check that was written on union funds ? 

Mr. Vandewark. Mr. Swanson didn't. 

Senator Goldwater, Mr. Swanson directed, as I understand it, that 
the check be drawn for $21,000. 

Mr. Vandewark. Senator Goldwater, what I tried to explain to 
Senator McClellan a moment ago was that this warrant— and why they 
are missing at the moment, I am unable to understand — attached to 
this warrant were the orders, the purchase orders, for 7 automobiles 
in the amount of $3,000 apiece. They were accompanying this 
warrant. 

Senator Goldv/ater. Where does the eighth car come in ? 

Mr. Vandewark. Actually, sir, the true price of the cars was 
eighteen-thousand-four-hundred-and-some-odd dollars. The correct 
amount I cannot remember at the moment. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7635 

Senator Goldwater. Are we not getting pretty close to the truth 
in this when you, in effect, charge the union the retail price and you 
took advantage of the wholesale price that the dealer gave you and got 
your car on the savings that should have gone to the union ? Isn't that 
about it? 

Mr. Vandeavark. No, sir. 

Senator Goldwater. How do you explain it? 

Mr. Vandewark. How do I explain it ? 

Senator Goldwater. How do you explain this $21,000 being en- 
dorsed by Mr. Swanson without some connivance with you as to how 
it was going to be handled ? 

Mr. Vandewark. I was aware of what was going on. I can't say 
I wasn't aware of it. 

Senator Goldwater. You knew about it all along ? 

Mr. Vandewark. Yes, sir. 

Senator Goldwater. That is the point I was confused on. I thought 
probably when you got up there you had an extra $2,477 of the union 
money and you did not want it to go back, so you got a car. 

I am satisfied. You have unconf used me. 

Thank you. 

Senator Mltndt. Mr. Vandewark, I have been looking at the consti- 
tution of the International Union of Operating Engineers. I want to 
call your attention to one clause in it. I think it has been read pre- 
viously at these hearings. Under the duties of the treasurer, article 
23, subdivision 2, section (e) , it says, in part : 

It shall be the duty of the treasurer to make no disbursements without approval 
of the local union, and only upon written order of the president and recording 
corresponding secretary. 

I presume you had a written order from Mr. Swanson to make out 
this check; is that right? 

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

Mr. Vandewark. Senator, the warrant is here signed by the presi- 
dent and secretary. 

Senator Mundt. Where is the written order ? 

Mr. Vandewark. That constitutes the written order. 

Senator Mundt. That is the written order. 

Is it cosigned by the corresponding secretary ? 

Mr. Vandewark. It is signed by, presumably — — 

Senator Mundt. Read the name^ of the men who signed it. 

Mr. Vandewark. Pat Clancy, president ; C. F. Mathews, secretary. 

Senator Mundt. Clancy and Mathews. 

The Chairman. Let the warrant be made exhibit No. .52. 

(The document referred to was marked "Exhibit No. 52" for refer- 
ence and will be found in the appendix on p. 7888.) 

Mr. Kennedy. This morning we mentioned a check for $10,000, 
which was supposed to have been used to promote and lobby for the 
pension fund at the 1956 convention. Are you familiar with that ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Did you receive any money out of that? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. How much money did you receive ? 

Mr. Vandewark. I believe $400. 

Mr. Kennedy. $400. A cashier's check ? 



7636 iMPROPEiR ACTivrriES in the labor field 

Mr. Vandewakk. Yes, sir. 

Mr. Kennedy. Did you receive any other money ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. How much? 

Mr. Vandewark. I believe I received an additional $500. 

Mr. Kennedy. For what purpose did you receive that money ? 

Mr. Vandewark. Delegates' expense to the international conven- 
tion. 

Mr. Kennedy. You already had your expenses from the regular 
fund ; what did you get the extra $900 for ? 

Mr. Vandewark. It is customary, when you attend conventions, to 
be given a convention expense check. 

Mr. Kennedy. You got expense convention checks. This was some- 
thing that was made out to the American Trust Co., and cashed, and 
then these various cashier's checks were purchased with that cash. In 
addition to this $900 that you received, you also received your regular 
expenses. Do you have any explanation for receiving this $900 ? 

Mr. Vandewark. As I stated, Mr. Kennedy, I got a $500 check, a 
convention expense check. I got the $400 cashier's check, which you 
you are now speaking of. 

Mr. Kennedy. Did you get any other cashier's check ? 

Mr. Vandewark. Not that I recall, sir. 

Mr. Kennedy. Do you think it is possible that you might have 
gotten another $500 cashier's check ? 

Mr. Vandewark. I have reason to doubt that I did. 

Mr. I^NNEDY. Do you deny that you did ? 

Mr. Vandewark. No, I wouldn't deny it. 

Mr. I^NNEDY. Do you know that the minutes were altered, on this 
$10,000 payment? 

Mr. Vandewark. I was not aware of the fact that the minutes had 
been altered or changed until the international auditor was sent in 
to local 3 to audit the finances and records of local 3. At that time 
I became aware of the alterations. 

Mr. I^NNEDY. You spoke of having a son. Do you have any other 
children ? 

Mr. Vandewark. Yes, sir. I have two daughters. 

Mr. Ejinnedy. Do either of the daughters ever do any typing for 
you? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. They never do ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. Wliat are your daughters' names ? 

Mr. Vandewark. My oldest daughter, her name is Jean, Dora Jean. 

Mr. Kennedy. What is her last name ? 

Mr. Vandewark. Williams. 

Mr. Kennedy. What is your other daughter's name ? 

Mr. Vandewark. Joanne. 

Mr. Kj:nnedy. Joanne what? 

Mr. Vandewark. Vandewark. 

Mr. Kennedy. Did Mrs. Williams ever do any typing for you ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. Never did any typing at all ? 

Mr. Vandewark. No, sir. 



IMPROPER AOTlVrriES Ds' THE LABOR FIELD 7637 

Mr. Kennedy. Never did any typing of union documents for you ? 

Mr. Vandewark. No, sir. I have no reason to type union docu- 
ments. 

Mr. Kennedy. Any letters for the union? Did she ever do any 
typing like that for you ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. Specifically, did you bring over these minutes to her 
home and have them altered at her home ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. We just talked to her at home over the phone about a 
quarter to 2, and she said she did a lot of typing for you for the union. 
Do you know why she would tell us that ? 

Mr. Vandewark. No. 

Mr. Kennedy. And she said to the best of her recollection, she 
thought she had done some typing of minutes for you, tiiat you had 
brought them over to her home. 

Mr. Vandewark. I don't believe so. 

Mr. Kennedy. Do you know why she would tell us that ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. You didn't bring these over and have them altered ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. Did she ever go down to the union hall for you? 

Mr. Vandewark. No, sir. 

Mr. I^NNEDY. She never did ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. She never did any typing in the union hall for you? 

Mr. Vandewark. No, sir. She worked in the building, but not in 
the particular portion occupied by local No. 3. She worked for the 
insurance company office downstairs for a period of time. 

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

Mr. Kennedy. But she never came up to your office and did some 
typing regarding union documents for you ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. Are you sure of that ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Do you know why she would tell us that she had ? 

Mr. Vandewark. I have no idea. 

Mr. Kennedy. Specifically, do you know why she would say she 
had done some typing at home for you regarding union documents? 

Mr. Vandewark. Regarding union documents ? 

Mr. Kennedy. Yes. 

Mr. Vandewark. No, sir ; I have no idea why she would. 

Mr. Kennedy. Would you deny that she did ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. And you deny you had her retype these minutes and 
alter them, and they have been altered ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Did you know that this land 

The Chairman. I present to you a photostatic copy of check No. 
7101, a cashier's check on the American Trust Co., in the amount of 
$400, made payable to you, Mr. Vandewark, dated March 3, 1956, 
and ask you if you identify that check as the one that you have spoken 
of about receiving $400 for your expenses to this convention. 



7638 IMPROPER ACTIVITIES IN THE LABOR FIELD 

(Document handed to the ^Yitness.) 

Mr. Vandewark. Yes, sir ; I received this. 

The Chairman. That may be made exhibit 53. 

(The document referred to was marked "Exhibit No. 53" for ref- 
erence and will be found in the appendix on p. 78b9.) 

The Chairman. Proceed. 

Mr. Kennedy. How are the insurance funds handled, the pension 
funds in your union ? Do you have a broker on that ? 

I am speaking of the health and welfare funds. 

Mr. Vandewark. The health and welfare funds ? Yes, sir. There 
are, to my knowledge, three brokers of record. 

Mr. Kennedy. Who are they ? 

Mr. Vandewark. Martin Siegel Co., of New York ; C. W. Sweeney 
Co., of San Francisco ; and Donald A. Cameron. 

Mr. Kennedy. Who is Donald A. Cameron I 

Mr. Vandewark. A real estate and insurance broker. 

Senator Mundt. Living where ? 

Mr. Vandewark. San Francisco. 

Mr. Kennedy. Was he also a partner at one time of Marshall Swan- 
son, Victor Swanson's son ? 

Mr. Vandewark. I understand that was so. 

Mr. Kennedy. And he is a broker on this insurance fund ? 

Mr, Vandewark. On one portion of it. 

Mr. Kennedy. Was he also on the public utilities commission with 
Victor Swanson ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Had he had any experience as a broker prior to this 
time ? That is, on health and welfare plans ? 

Mr. Vandewark. I am not in a position to judge that, sir. 

Mr. Kennedy. Did he put a bid in to receive this business ? 

Mr. Vandewark. Not that I was aware of ; no, sir. 

Mr. Kennedy. On whose instructions did he receive this ? 

Mr. Vandewark. ]Mr. Swanson placed him on there as a broker. 

Mr. Kennedy. Did he ever do any work ? 

Mr. Vandewark. On the health and welfare ? 

Mr. Kennedy. Yes. 

Mr. Vandewark. None to my knowledge. 

Mr. Kennedy. Are you a trustee of the health and welfare ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Do you know how much money he has received as 
of this date? 

Mr. Vandewark. No, I don't know how much money he has received 
as of this date, but I did furnish the committee a copy of the letter 
from the New York Life Insurance Co. outlining the amount he 
had received as a company broker. 

The Chairman. I believe you said he did no work. 

Mr. Vandewark. I said he had to my knowledge. Senator — has done 
no work on the health and welfare. 

The Chairman. In other words, he has earned no brokerage fees or 
compensation, so far as you know ? 

Mr. Vandewark. As far as I know, sir, no. 

The Chairman. He has not earned it. I present to you a photostatic 
copy of a letter dated August 6, 1957, addressed to you, signed by the 
assistant vice president of the New York Life Insurance Co. I ask 



IMPROPER ACTIVITIES IX THE LABOR FIELD 7639 

you if you identify that letter as the one you received regarding these 
brokerage fees ? 

(Document handed to the witness.) 

Mr. Vandewark. Yes, sir ; that is the letter. 

The Chairmax. That may be made exhibit No. 54. 

(The document referred to was marked "Exhibit No. 54" for 
reference and will be found in the appendix on p. 7890.) 

The Chairman. How much does it show that this Mr. Cameron 
received, for which he did no work ? 

Mr. A^ANDEWARK. Do you wish a total amount or a breakdown by 
years ? 

The Chairman. The total amount up to the date of the letter. 

Mr. Vandewark. The total amount up to the date of the letter, 
August 9, 1957, is a total of $7,088.69. 

The Chairman. $7,088.69. Is there anything further on that ? 

Mr. Kennedy. No. 

The Chairman. We have an affidavit here from Mr. Donald A. 
Cameron which may be printed in full in the record at this point. I 
wish to read an excerpt from it. The affidavit is dated January 17, 
1958, and it is signed by Mr. Cameron before a notary public. 

Following the setting up of the funds I did not contact Sweeney any further, 
although I would have occasional conversations with Swanson about the progress 
of the fund. I continued to draw a quarterly commission check, approximately, 
from the New York Life Insurance Co. I have been asked by the trustees of 
the fund to discontinue my association as broker, and I have taken the matter 
to the New York Life Insurance Co. for consultation before taking any action. 

(Mr. Cameron's affidavit follows :) 

January 17, 1958. 
State of California 

County of San Francisco, ss : 

I, Donald A. Cameron, who reside at 2100 Pacific Avenue, San Francisco, 
Calif., make the following statement to Pierre E. G. Salinger who has identified 
himself to me as an investigator for the Senate Select Committee on Improper 
Activities in the Labor or Management Field. 

I make this statement under no threat and with no promise of immunity and I 
understand that it may be used in an open hearing of the committee. 

I am now and have been for the past 58 years in the real-estate and insurance 
business in San Francisco, Calif., with offices at 2566 Ocean Avenue, San Fran- 
cisco, Calif. 

In the year 1948 I was appointed to the San Francisco Public Utilities Com- 
mission by the then mayor of San Francisco. Elmer E. Robinson. At that time 
I met for the first time Mr. Victor S. Swanson who was also a member of the 
public utilities commission and who I understood to be the business manager of 
Local 3 of the International Union of Operating Engineers. 

Sometime during 1952 I discussed with Mr. Swanson the subject of a proposed 
health and welfare fund, retirement plan, and other insurance plans which local 
3 was then considering setting up. I asked Mr. Swanson if I could submit a bid 
to become the broker for this account. I, at that time, had not previously done 
any work in this particular end of the insurance business and I was interested 
in starting out in the field since I saw it was potentially a very lucrative business. 

I discussed the proposed insurance with representatives of a number of car- 
riers. During the course of this preparation, I became acquainted with Mr. 
Charles W. Sweeney, an insurance broker with offices then at 41 Sutter Street, 
who I know to have substantial experience in this particular field of insurance. 
I asked Mr. Sweeney if he would be interested in going into this transaction with 
me and handling the working end of the business. On October 1, 1952, by letter 
from Victor S. Swanson, I was notified that the trustees of the Operating Engi- 
neers Local Union No. 3 had appointed me as the exclusive broker for the retire- 
ment, welfare and group insurance funds which the union was to set up. This 
authorization letter was prepared in the offices of an attorney, Ernest Tor- 



7640 IMPROPER ACTIVmES IN THE LABOR FIELD 

regano, and signed by Swanson. The funds then got underway with Sweeney 
moving his office to the Operating Engineers Building and performing the day- 
to-day worli of the fund operations. A contract was drawn up between myself 
and the New York Life Insurance Co. in which I was to draw two-thirds of the 
commissions and Sweeney one-third. This was changed, however, before the 
contract was signed, to a 50-50 arrangement. I have been shown a letter of the 
New York Life Insurance Co. which indicates that in the period December 1, 1952, 
to July 1, 1957, I drew a total of $7,088.69 in commissions from these funds. 

Following the setting up of the funds, I did not contact Sweeney any further 
although I would have occasioned conversations with Swanson about the progress 
of the funds. I continued to draw a quarterly commission check, approximately, 
from the New York Life Insurance Co. I have been asked by the trustees of 
the fund to discontinue my association as broker and I have taken the matter to 
the New York Life Insurance Co. for consultation before taking any action. 

In my contact with Mr. Swanson as a member of the Public Utilities Commis- 
sion, I had occasion to meet his son, Marshall Swanson, and in 1953 I was asked 
by Marshall Swanson whether I would be interested in going into a building 
venture with him. At that time, a company, Donald A. Cameron, Inc., was 
formed by myself and Marshall Swanson with an initial capitalization of $10,000 
of which I invested $5,000 and received 5,000 shares of stock at $1 a share. The 
corporation papers provided for a total of 50,000 shares but only 10,000 were sub- 
scribed. We built a total of 15 houses — 4 in Menlo Park, and 11 in Belmont, 
Calif. 

Although I did not officially sever my connection with the Donald A. Cameron, 
Inc., until July 1954 or 1955, I had not, in fact, participated in any of its business 
at least 6 months prior to that time. While the Donald A. Cameron, Inc., built 
the hall of the International Union of Operating Engineers in Marysville during 
the time that I was a partner of record in the company, I did not participate in 
any of the profits from the construction of that building although I was pres- 
ent at the building's dedication. The final payment for my stock in Donald A. 
Cameron, Inc., came from the Marshall Development Co. which was the succes- 
sor company set up by Marshall Swanson as an individual. 

During the year 1952, while I was a member of the public utilities commis- 
sion with Swanson, a piece of water-department property comprising 14.6 acres 
of marshland in south San Francisco was declared surplus by the water depart- 
ment and by act of Commission Resolution No. 12,453, it was put up for sale. 
By city procedures, the sale is then handled by the real-estate department. 
Sometime in 1955 I heard that the land was being sold to a San Francisco 
attorney, Vladimir Vucinisch, as agent for the Lowrie Paving Co. I voiced ob- 
jection to the sale at the time because I felt that the price, $65,000, was too 
low. I later changed my mind and decided not to make an official challenge to 
the board of supervisors because I felt that such a challenge would be fruitless. 

I never at any time discussed the sale of this particular piece of land with 
fellow Commissioner Victor Swanson and he, at no time, had apprised me that 
he was to have an interest in the property as a result of the sale to Vucinisch. 
I do not, of my own knowledge, even know to this day whether or not Swanson 
owns that particular piece of land. I am keenly aware that under section 222 
of the San Francisco city charter dealing with prohibitive practices of officers 
and employees, it would be illegal for a public utilities commissioner to have 
any financial dealings with the city, such as acquiring a piece of property from 
another city department. 

I believe all of the above statements to be the truth to the best of my knowl- 
edge. 

Donald A. Cameron. 

Sworn and subscribed to before me this 17th day of January 1958. 

[seal] Juliette Borieou. 

Mr. Kennedy. JNIr. Vandewark, you are familiar with the Stockton 
land deal, the purchase of the land ? 

Mr. Vandewark. Yes, sir. 

Mr. KJENNEDY. Did you receive any moneys, directly or indirectly, 
out of that transaction ? 

Mr. Vandewark. No, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7641 

Mr. Kennedy. Did you know on parcel No. 3 that you were repur- 
chasing a piece of property for $35,000 that just 6 months prior to 
that you had sold for $15,000 ? 

Mr. Vandewark. No, sir ; I did not. 

Mr. Kennedy. You did not realize it was the same piece of prop- 
erty? 

Mr. Vandewark. I did not. 

Mr. Kennedy. Did you realize that Mr. Doran was receiving $4,000 
on the original transaction, namely, the purchase of the property by 
the union? 

Mr. Vandewark. I was not aware of any of the hidden profits or 
secret deals until the entire thing was audited by our international, 
and a report made. 

Mr. Kennedy. But prior to that you knew nothing about it? 

Mr. Vandewark. I did not. 

Mr. KJENNEDY. You did not receive any moneys yourself ? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. And you were not aware that Mr. Doran was turn- 
ing any money over to Mr. Swanson ? 

Mr. Vandewark. I was not. 

Mr. Kennedy. This was all new to you, and you did not become 
aware of it until the international began their audit, is that right? 

Mr. Vandewark. That is correct. 

Senator Curtis. How many papers did you sign in connection with 
that, with all of these real-estate transactions ? 

Mr. Vandewark. I believe I signed one check for the original 
purchase of the property, and I think I signed one of the deeds to 
one of the parcels when it was sold. 

Senator Cfrtis. How about the last check? 

Mr. Vandewark. That is right ; I signed the last check also. 

Senator Curtis. What do you mean "didn't know anything about 
it"? You are the man that writes the check, who buys the original 
land, and is called on to sign a deed when you sell part of it, and 
then later on you write another check to buy it back, one part of it. 

What do you mean you didn't know anything about it? 

Mr. Vandewark. Senator, I wasn't aware of the fact that we were 
repurchasing a piece, a parcel, of the original purchase. 

Senator Curtis. You are the treasurer of the union, are you not? 

Mr. Vandewark. That is correct. 

Senator Curtis. How long have you been treasurer ? 

Mr. Vandewark. Since 1941. 

Senator Curtis. How big were these checks you were signing? 

Mr. Vandewark. One Avas in the amount of around $33,000, and 
the other in the amount of around $35,000, 

Senator Curtis. You did not know what the $33,000 check was for? 

Mr. Vanderwark. In knew it was a parcel of property that we were 
purchasing. 

Senator Curtis. You did not know where it was located ? 

Mr. Vandewark. I knew it was located in the city of Stockton. 
I had not seen the property. 

Senator Cur'tis. But you honestly did not know it had any con- 
nection with the other land? 

Mr. Vandewark. No, sir; I did not. 



7642 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Senator Cuktis. You could have found out; could you not? 

Mr. Vandewark. I assume that I could have. 

Senator Curtis. Here you, as treasurer, handling other people's 
money, sign a check for $33,000 that you do not know anything about. 
It is difiicult to understancl. You look a lot smarter than tliat. I 
believe you are. 

That 'is all, Mr. Chairman. 

The Chairman. There is one other thing I may have overlooked, 
though it may be in the record. AA^ien you turned over this $2,400 
to Mr. Swanson in the car deal, of your own money, as you stated, 
did you get a receipt from him ? 

Mr. Vandewark. No, sir. 

The Chairiman. There is no written evidence in any way to support 
your statement as to how the transaction was handlecl ? 

Mr. Vandewark. There is not. 

The Chairman. Is there anything else ? 

Mr. Kennedy. That is all. 

The Chairman. Thank you. Stand aside. 

Call the next witness. 

Mr. Kennedy. Mr. Garrett. 

The Chairman. Come forward, Mr. Garrett, please. 

Mr. Kennedy. Mr. Chairman, we will not be able to finish these 
transactions this afternoon. We will have to continue with San Fran- 
cisco tomorrow morning. 

The Chairman. We will grind a while longer. 

Do you solemnly swear that the evidence you shall give before this 
Senate Select Committee will the truth, the whole truth, and nothing 
but the truth, so help you God ? 

Mr. Garrett. I do. 

TESTIMONY OF ELWOOD L. GARRETT 

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

Mr. Garrett. My name is Elwood L. Garrett. My address is San 
Francisco. I am bookkeeper for Operating Engineers Local No. 3. 

The Chairman. Do you waive counsel ? 

Mr. Garreit. I do, sir. 

The Chairman. How long have you been bookkeeper for local No. 3 ? 

Mr. Garrett. Since March 3, 1947. 

The Chairman. All right, Mr. Kennedy. 

Mr. Kennedy. Mr. Garrett, what were your responsibilities as a 
bookkeeper ? 

Mr. Garrett. Well, to record the transactions to the best of my 
knowledge. 

Mr. Kennedy. And you recorded what you were told ; is that right? 

Mr. Garrett. Eight. 

Mr. Kennedy. Did you take part at all or did you have any position 
in connection with the election that was held ? 

Mr. Garrett. To what election do you refer ? 

Mr. Kennedy. The election in 1956, principally. 

Mr. Garrett. Yes, sir. 

Mr. Kennedy. What was your position in connection with that? 

Mr. Garrett. Tallying the votes. 



niPROPER ACTIA'ITIES IN THE LABOR FIELD 7643 

Mr. Kennedy. Tallying the votes ? 

Mr. Garrett. Yes, sir. 

Mr. Kennedy. Did you have a committee that was supposed to tally 
the votes ? 

Mr. Garrett. Yes, sir. 

Mr. Kennedy. How many were on the committee ? 

Mr. Garrett. I believe there were two others. 

Mr. Kennedy. What were the votes cast for ? What election was it ? 

Mr. Garrett. It was the international election. 

Mr. Kennedy. What officers were running ? 

Mr. Garreit. I believe it was the whole international. 

Mr. Kennedy. A large number ? 

Mr. Garrett. Yes. 

Mr. Kennedy. You were tallying the votes out of local No. 3; is 
that right? 

Mr. Garrett. Right. 

Mr. Kennedy. And that was for that international election? 

Mr. Garreti\ Eight. 

Mr. Kennedy. The votes were cast, and then what did you do with 
the ballots after they were cast? 

Mr. Garrett. Well, we tallied about 500 of them. 

Mr. Kennedy. Where did you tally them? Where did you count 
them ? 

Mr. GARRET'r. Actually it was in a cabin that the local owns. 

Mr. Kennedy. You went to a cabin that the local owns ? 

Mr. Garreit. In Calaveras County. 

Mr. Kennedy. The local owns the boat, tlie airplane, and a cabin, 
too? 

Mr. Garrett. Yes, sir. 

Mr. Kennedy. What is the cabin used for ? 

Mr. Garrett. That I couldn't say. We used it that one time. 

Mr. Kennedy. That is the only time • 

Mr. Garrett. It is the only time I ever saw it. 

Mr. Kennedy. Do you know how much the cabin cost ? 

Mr. GARRET-r. Yes, sir. 

Mr. Kennedy. How much did it cost ? 

Mr. Garrett. Around $8,500. 

Mr. Kennedy. Do you know if it was ever used for union purposes, 
other than this once Avhen you were down tallying the votes ? 

Mr. Garreti'. That is the only time I know of. 

The Chairman. How far is tliis cabin awa}' from your head- 
quarters, f I'om the office ? 

Mr. Garrett. My guess would be about 140 or 150 miles. 

The Chairman. You took the ballots 140 to 150 miles to count 
them ? 

Mr. Garrett. Yes, sir. 

The Chairman. Go ahead. 

Mr. Kennedy. So you and 2 other talliers, the 8 of you, went to the 
cabin ? 

Mr. Garretp. No ; tlierc was four of us. 

Mr. Kennedy. Who was the fourth ? 

Mr. Garrett. Mr. Swanson. 

Mr. Kennedy. Was he running for office at the time ? 

Mr. GARRE'n\ Yes, sir. 



7644 IMPROPEK ACnVITIEiS IN THE LABOR FIELD 

Mr. Kennedy. Did you sit down and start to count the ballots? 
Mr. Garrett. "VVe counted tliem. 
Mr. Kennedy. How many ballots were cast ? 

Mr, Garrett. I would say somewhere between two and three 
thousand. 

Mr. Kennedy. How many votes did you count ? 
Mr. Garrett. Either five or six hundred. 
Mr. ICennedy. You only counted five or six hundred ? 
Mr. Garrett. That is right. 

Mr. Kennedy. Did you get tired of counting them after that? 
Mr. Garrett. Well, that is all they wanted to count. 
Mr. Kennedy. What? 

Mr. Garrett. That was all they wanted to count. 
Mr. Kennedy. Who is "they" ? 
Mr. Garrett. Well, Mr. Swanson. 

Mr. Kennedy. So you only counted five or six hundred of the bal- 
lots, is that right ? 
Mr. Garreit. Eight. 

Mr. Kennedy. Did they decide they did not want to count any 
more ? What did you decide to do then ? 

Mr. Garrett. Well, it was decided that that was the trend of the 
election, and that was going to be it. 

Mr. Kennedy. What was going to be it? 

Mr. Garrett. Well, the trend that was determined from those 500 
ballots that were tallied. 

Mr. Kennedy. What did you do with the ballots then? 
Mr. Garrett. They were kept at the office. 

Mr. Kennedy. Did you take them back then, to the union hall ? 
]\'Ir. Garrett. Yes, they were taken back to the office. 
Mr. Kennedy. Who took them back to the union hall ? 
Mr. Garrett. They were taken back to the office in the car with 
the four of us. 

Mr. Kennedy. So there were approximately two or three thousand 
votes cast in the election and you counted five or six hundred and then 
packed up and came back to the union hall ? 
Mr. Garrett. Eight. 

]Mr. Kennedy. Do you know how many votes were certified as hav- 
ing been cast in that election ? 

Senator Mundt. Before we leave the cabin, I am not quite clear in 
my own mind why you went to the cabin to count the ballots. 
Mr. Garrett. That I do not know, sir. 

Senator Mundt. You know why you were there, do you not ? You 
were one of the four. Why did you go ? 

Mr. Garrett. Well, there was nothing that couldn't have been done 
right at the office in San Francisco. 

Senator Mundt. I am not asking you that question. I am asking 
you why you went 140 miles with the ballots to try to count them. 
Mr. Garrett. That was Mr. Swanson's idea. 

Senator Mundt. He wanted to set up the party, the trip, or what- 
ever it was? 

My. Garrett. I presume that was the case. 
Senator Mundt. Did you have dinner up there, or supper ? 
Mr. Garrett. Yes. We cooked our own. AYe stayed there over- 
night. 



ESIPROPER ACTIVITIES EST THE LABOR FIELD 7645 

Senator Mundt. You stayed there all night? 

Mr. Garrett. Yes. 

Senator Mundt. You kind of made a party out of it, the four of 
you? 

Mr. Garrett, Yes. sir. 

Senator Mundt. More fun playing cards or bending elbows or eat- 
ing than it was counting ballots, so you put the ballots aside and 
enjoyed yourself? 

Mr. Garrett. No, we didn't — yes, I guess we did play a little cards. 

Senator Mundt. It is a logical thing to do in a cabin in the moun- 
tains. 

Mr. Garrett. Yes, sir. 

Senator Mundt. Do you remember how the ballots broke up in those 
600 that you counted ? How many opponents did Mr. Swanson have ; 
just one ? 

Mr. Garrett. How many what ? . . . 

Senator Mundt. How many opponents did he have in the election ? 

Mr. Garrett. For himself ? He didn't have any opponents on that 
international election. 

Senator Mundt. He did not have any ? 

Mr. Garrett. No, sir. 

Senator Mundt. Did anybody have any ? 

Mr. Garrett. Yes, sir; there were others. There were probably 
25 or 30 names on the ballot, but I believe there was only probably 
23 to be selected. 

Senator Mundt. You were to select 23 people out of 25 candidates 
for what job, trustees ? 

Mr. Garrett. Well, they were vice presidents, trustees. I don't re- 
call all of them. 

Senator Mundt. Out of a pool of about 25 candidates you were to 
choose 23 ; is that right ? 

Mr. Garrett. Yes, sir ; I presume that was the case. 

Senator Mundt. How did you decide which two not to declare as 
winners ? 

Mr. Garrett. Well, I believe there was more than two. I think there 
was about 30 names on the ballot and 25 probably running. 

Senator Mundt. About seven of them lost out. How did you decide 
which seven to leave off ? 

Mr. Garrett. Well, Mr. Swanson was the one that decided that. 

Senator Mundt. Mr. Swanson said, "We will declare these 23 
elected and the other 7 not" ? 

Mr. Garrett. Yes. 

Senator Mundt. Thank you. 

Senator Curtis. There was no one to observe the counting in the 
cabin ; was there ? 

Senator Curtis. That made a good place to count them. 

That is all. 

Mr. Kennedy. Mr. Swanson had certain individuals who were his 
favorites, that he was endorsing in the election; did he not? 

Mr. Garrett. I believe they were ; yes. 

Mr. Kennedy. And he published a statement about those individ- 
uals in whom he was interested ? 

Mr. Garrett. That is right. 



7646 IMPROPER ACTWITIES IN THE LABOR FIELD 

Mr. Kennedy. He was interested, for instance, in Dale Burchett, 
J. C. Turner, E. W. Tucker; those were three of the people he was 
interested in, is that correct ? 

Mr. Garrett. I couldn't say for sure. They were only names to 
me. 

Mr. Kennedy. Out of the possibly two or three thousand votes 
that were cast, his friend Mr. Burchett got 16,i72 votes. Would you 
tell us how that was possible ? 

Mr. Garrett. It wasn't possible. We only counted five or six 
hundred. 

Mr, KIennedy. You only counted five or six hundred, only two or 
three thousand were cast, and Mr. Burchett got 16,472 votes. His 
opponent, Mr. Converse, who I understand was not well liked, got 
354 votes. 

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

The Chairman. The question is : Is that a true count ? 

Mr. Garrett. No, sir. 

Mr. Kennedy. Mr. Turner, running for 10th vice president, got 
16,214 votes and his opponent, Mr. Bronson, who was running for 10th 
vice president, got 387 votes. 

Mr. Garrett. That could be. 

The Chairman. Is this what you would call a rough estimate? 

Mr. Garrett. Yes, sir. 

The Chairman. It Avas very rough. It was rough on the folks that 
Mr. Swanson did not like, was it not ? 

Mr. Garrett. Right. 

The Chairman. Sir ? 

Mr. Garrett. Right. 

Mr. Kennedy. Evidently he liked Mr. O'Connell and Mr. Tucker, 
who were running for the general board of trustees, because Mr. 
O'Connell got 14,060 votes and Mr. Tucker got 16,069 votes, while his 
opponent, Mr. Kelley got 483 votes, Mr. Connors got 474 votes, Mr. 
Carman got 364 votes, and Mr. Wharton got 619 votes. 

These were the opponents of these other gentlemen. Yet, there were 
only two or three thousand votes that were cast, is that right ? 

Mr. Garrett. Yes. 

Mv. Kennedy. It is difficult to understand. 

The Chairman. Did you ever understand it ? 

Mr. Garrett. No, sir. 

The Chairman. You still do not understand it ? 

ISIr. Garrett. That is right. 

The Chairman. Were these people arrived at by just somebody 
putting down the figures, telling you how many to put down? 

Mr. Garrett. Yes, sir. 

The Chairman. A^Hio told you how to put them down ? 

Mr, Garrett, Swanson, 

The Chairman. Swanson told you how to put them down, how to 
report the returns ? 

Mr. Garrett. Yes, sir. 

The Chairman. They were never counted ? 

Mr. Garrett. No, sir. 

Mr, Kennedy. Mr, Swanson also was not a friend of Mr. Ma- 
loney, was he ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7647 

Mr. Garrett. That I couldn't say. I don't know anything about 
the international politics. 

Mr. Kennedy. Mr. Maloney also got edged in the election. He got 
7,295 votes, but his opponent got 9,862 votes. There was even a correc- 
tion on those tallies, was there not, at a later time ? Were you aware of 
that? 

Mr. Garrett. I am not aware of that. 

The Chairman. I hand you here a letter addressed to Tellers. 
You were, I guess, a teller at the election, were you, a counter ? 

Mr. Garrett. I believe tliat is what I was supposed to liave been. 

The Chairman. That is what you were supposed to liave been? 

Mr. Garrett. Yes, sir. 

The Chairman. Here is a letter apparently addressed to you from 
Mr. C. F. Mathews, recording secretary, dated August 7, 1956. Will 
you examine tliat and state if you identify tliat as a copy of a letter 
that you received as one of the tellers ? 

(A document was handed to the witness.) 

Mr. Garrett. I don't recall ever seeing this before. 

The Chairman. Do you think that was just written out and put 
in the files without being distributed to you or handed to you? 

jNIr. Garrett. I don't recall ever seeing this. This is addressed to 
tellers of the international. 

The (^HAiRMAN. Tellers of the international? I am sorry, I just 
saw tellers there. I thought that is what you were. You never saw 
that letter before? 

Mr. Garrett. No, sir. 

The Chairman. You cannot identify it ? 

Mr. Garrett. No, sir, I do not recall ever seeing this before. 

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

Mr. Kennedy. Would you read that in, Mr. Chairman ? 

The Chairman. Let me ask how it was obtained. Who obtained the 
letter? 

TESTIMONY OF JOSEPH I. GORDON— Eesumed 

The Chairman. Mr. Gordon, continuing your testimony, is this 
a copy of a letter that you obtained in the course of your investiga- 
tion ? 

]\Ir. Gordon. Yes, sir. 

The Chairman. Where did you get it ? 

Mr. Gordon. I obtained this letter in a complete file from C. F. 
Mathews, the recording secretary. 

The Chairman. It was in his records ? 

Mr. Gordon. Yes, sir. 

The Chairman. As secretary ? 

Mr. Gordon. Yes, sir. 

The Chairman. It may be made exhibit 55. 

(The document referred to was marked "Exhibit No. 55" for refer- 
ence and is as follows :) 

Tellers, Election of General Officers, 
International Union of Operating Engineers, 

Washington, D. C. 
Dear Sirs and Brothers : Enclosed please find official tally sheets No. 1 and 
No. 2. At the meeting of July 7, 1956, Operating Engineers Local Union, No. 3, 
the following motion was moved, seconded, and carried : That the vote of all 



7648 IMPROPER ACTWITIES IK THE LABOR FIELD 

members who fail or neglect to cast their ballot be added to the vote of each 
candidate receiving the highest number of votes cast, except in the case of 
the trustees, in which case the votes shall be added to the votes of the three 
candidates receiving the most votes, if this may lawfully be done and, further, 
that the secretary be instructed to report both totals to the international. Tally 
sheet No. 1 shows the vote actually cast. Tally sheet No. 2 shows the vote tallied 
in accordance with this motion. 
Fraternally yours, 

C. F. Mathews, Recording Secretary. 

The Chairman. It is dated Au^st 7, 1956. 

Mr. Gordon, did you also find 2 tally sheets No. 1 and No. 2 in the 
file? 

Mr, Gordon. In the same file, sir. 

The Chairman. Do you identify these documents as tally sheets No. 
1 and No. 2 ? 

Mr. Gordon. Yes, I do. 

The Chairman. They may be made exhibit 56. They will be ex- 
hibits 56 and 56-A ; No. 1 is 56 and No. 2 is 56-A. 

(The documents referred to were marked "Exhibits Nos. 56 and 
56-A" for reference and will })e found in the appendix on pp. 7891- 
7893.) 

The Chairman. Have you tabulated them to show how many votes 
were added other than those cast ? 

Mr. Gordon. No ; I did not. 

The Chairman. They will show for themselves. 

Mr. Kennedy. To the ones I mentioned before, to the winners, 1,345 
votes were added to the winners. 

The Chairman. We did not only estimate in the beghniing, from 
what I understand, what we thought v>"e ought to give them roughly, 
but when w^e got through w^ith that, we took all of the votes that did 
not vote, we counted them up and found there were one thousand 
three hundred and some and added those votes to the winning votes. 

Mr. Ivennedy. That is correct. Turner, who got 16,314 votes on 
talley sheet No. 1 out of 3,000 votes cast, on tally sheet No. 2 got 
17,559 votes. 

Gramling got 16,706 votes on tally sheet No. 1, and got 18,051 votes 
on tally sheet 2. 

Senator Curtis. All of that out of 2,000 ballots ? 

Mr. KJENNEDY. Yes ; and out of 500 or 600 counted. 

Senator Mundt. I noticed that the letter had the proviso in it 
about, "if this can legally be done." I wonder if the staff checked 
with the clerks to find out wdiether the international union looks upon 
that as a legal procedure, for the tally clerks to act in this manner. 

The Chairman. We have the official returns. 

Mr. Ivennedy. They used tally sheet No. 1. 

Senator Mundt. The estimate they considered legal ? 

The Chairman. They probably did not need them. 

Senator Mundt. I guess that is correct. 

The Chairman. Proceed. 

Mr. Kennedy. This, I understand, was a procedure followed in 
more locals than the one in San Francisco, in the Operating 
Engineers. 



IMPROPER ACTIVITIES IX THE LABOR FIELD 7649 

TESTIMONY OF ELWOOD L. GARRETT— Resumed 

The Chairman. Is there anything further^ 

(At this point, Senator Minidt left the hearing room.) 

Mr. Kennedy. Would you tell me about this one check? 

The Chairman. I present to you a check on your union local No. 3, 
dated November 7, 1950, pay to order of cash, in the amount of $2,500. 
I ask you to examine this photostatic copy of the check and state if 
you identify it, please, sir. 

(The document handed to tlie witness.) 

Mr. Garrett. It is one of our checks. 

The Chairman. He identifies it as one of their checks. That may 
be made exhibit 57. 

(The document referred to was marked "Exhibit No. 57," for ref- 
erence and will be fomid in the appendix on p. 7894.) 

The Chairman. Give us an explanation of it. Wliat is it for? 

Mr. Garrett. The only explanation I see of it here is that it is for 
general organizing. 

The Chairman. Wlio got the money ? Wlio endorsed it ? 

Mr. Garrett. It looks like William Kyne. 

The Chairman. Who is he ? 

Mr. Garrett. I am not sure. 

I don't know for sure. 

Mr. Kennedy. You know who it is, don't you ? 

Mr. Garrett. I have an idea who it is. 

Mr. Kennedy. What is your idea ? 

Mr. Garrett. I think he is an operator of a racetrack on the coast. 

Mr. Kennedy. An operator of a racetrack out on the coast. 

Mr. Garrett. Yes, sir. 

Mr. Kennedy. Is he a union member ? 

Mr. Garrett. Not that I know of. 

Senator Ervin. If the horses could race as fast as the Swanson's 
candidates, it must certainly be some horse race. 

Mr. Kennedy. It is William Kyne, is it not, and wasn't he former 
manager of the Bay Meadows racetrack? 

Mr. Garrett. I believe he was. 

Mr. Kennedy. And this check is for general organizing? 

Mr. Garrett. Yes, sir. 

Mr. Kennedy, And it appears to have been cashed by the proprie- 
tor of the Bay Meadows racetrack ?. 

Mr. Garrett. Yes, sir. 

The Chairman. Did you get a voucher for that before you entered 
that into your books ? 

Mr. Garrett. The voucher is made at the same time the check is. 
The warrant is, rather. 

The Chairman. Did you get a warrant for that ? 

Mr, Garrett. Yes, sir. 

The Chairman. The warrant shows it to be for general organizing ? 

Mr. Garrett. The warrant shows what was on the check. 

The Chairman. Can you give us a little enlightenment as to how 
you do general organizing of operating engineers at a racetrack? 

Mr. Garrett. That I would not know, sir. 

The Chairman. You wouldn't know? 

21243— 58— pt. 19 10 



7650 IMPROPEIR ACTTVITIES IN THE LABOR FIELD 

Mr. Garrett. No, sir. 

The Chairman. How long have you been in the union ? 

Mr. Garrett. For about 11 years. 

The Chairman. How long have you been an officer ? 

Mr. Garrett. I am not an officer. I am a bookkeeper. 

The Chairman. Have you had several organizations at, racetracks 
like that? 

Mr. Garrett. I don't remember offhand if there was any others 
or not. 

The Chairman. I guess in your experience you have handled a lot 
of queer transactions, have you, in your books ? 

Mr. Garrett. Well, I have written over 100,000 checks since I have 
been in the organization. 

The Chairman. How many of them seemed improper? 

Mr. Garrett. That I couldn't say, sir. 

The Chairman. Many of them ? 

Mr. Garrett. No ; at the time none of them seemed so. 

The Chairman. What? 

Mr. Garrett. When they were written, none of them seemed 
improper. 

The Chairman. As they are written now, they seem improper? 

Mr. Garrett. From what I have heard in the last year ; yes. 

The Chairman. A good many of them were improper ? 

Mr. Garrett. Yes, sir. 

The Chairman. All right. Senator Goldwater? 

Senator Goldwater. I wanted to ask a question regarding auditing 
methods. 

Are your books audited by the international ? 

Mr. Garrett. They were audited by the international ; yes, sir. 

Senator Goldwater. How often are they ? 

Mr. Garrett. That is periodic. The last time was the first part of 
last year. 

Senator Goldwater. ^Vliat was the last time before that ? 

Mr. Garrett. I think it was about 3 or 4 years before that 

Senator Goldwater. Have you been auditor for 11 years ? 

Mr. Garrett. I am the bookkeeper, sir. 

Senator Goldwater. I mean bookkeeper for the 11 years. 

Mr. Garrett. Yes, sir. 

Senator Goldwater. In the 11 years that you have been bookkeeper, 
how many times has the international audited your books? 

Mr. Garrett. Twice. 

Senator Goldwater. Why haven't they found any of these discrep- 
ancies that have been brought up here today ? 

Mr. Garrett. I believe that is when they were uncovered, through 
the international auditor. 

Senator Goldw^ater. Then what was done? When they uncovered 
these things, what was done by the international ? 

Mr. Garrett. That I do not know. 

Senator GoLDw^\TER. Was there any action taken ? 

Mr. Garrett. Well, it started investigations, and then there was a 
hearing held by the international in Washington on Mr. Swanson's 
activities. But I don't know too much about that. That is out of my 
jurisdiction so to speak. 



IMPROPER ACTIVrTIES IN THE LABOR FIELD 7651 

Mr. Kennedy. Up until this time you had a procedure in the Oper- 
ating Engineers for having an outside auditor come in and look at the 
books ? 
Mr. Garrett. Yes, sir, every quarter. 

Senator Goldwater. During that period of time, what is your ex- 
planation for the fact that none of these things, the way the money 
was being misused, were uncovered? Is it the type of audit that is 
made? 

Mr. Garrett. Well, in the first place, it was not the CPA's respon- 
sibility to challenge such items as have been uncovered in the past year 
or two. It was not their obligation to challenge those. Nor was it 
mine. 

Senator Goldwater. The fact that you say that an auditor came in 
and looked at the books is not a sufficient safety valve for maintaining 
or insuring that the money of that union is not being misused, is that 
right? 

Mr. Garrett. No, an audit of that type would not guarantee that. 
It was not that type. 

Senator Goldwater. So nobody ever came in to look through the 
books to insure that the money was not being misused or mishandled ? 

Mr. Garrett. Yes. The international auditor came in. 

Senator Goldwater. But according to your explanation, as I under- 
stand it, they could never uncover these things, because of the type 
of audit they made. 

Mr. Garrett. Well, no, we are getting confused here. I am speaking 
of the international auditor now, Mr. Thomas Moore. 

Senator Goldwater. But that has been lately, has it not ? 

Mr. Garrett. Yes. That was a year ago, the first part of last year. 

Senator Goldwater. Up until then, when the auditor came in, the 
type of audit that they conducted would not uncover these kinds of 
mishandlings and misusing of union funds ? 

Mr. Garrett. No, sir. They made an audit for the mechanical ac- 
curacy. 

Senator Goldwater. They made sure everything added up correctly 
in the columns, is that right ? 

Mr. Garrett. That is right, so to speak. 

Senator Goldwater. Will you tell us why they did not make a com- 
plete audit ? 

Mr. Garrett. That I cannot answer you. That was a policy of the 
union, I guess. They made the same type of audit the first audit they 
made after I was there, and they have just made that mechanical audit. 

Senator Goldwater. Would that be the order of Mr. Swanson ? 

Mr. Garrett. Yes, sir. 

Senator Goldwater. That is, as to the amount of coverage that they 
were to give in their audit ? 

Mr. Garrett. Eight. 

Senator Goldwater. Is there anything in the way you keep books 
that has been ordered by Mr. Swanson ? 

Mr. Garrett. Well, just what do you mean by that? 

Senator Goldwater. Have you been directed from time to time to 
cover up in your ledgers for any of these expenses, to make them 
appear as if tliey were legitimate union expenses? 



7652 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Garrett. There have been cases which I have learned of ; yes. 

Senator Goldwater. That occurred at Mr. Swanson's orders, is that 
correct ? 

Mr. Garrett. Eight. 

Senator Goldwater. My question was did ]Mr. Swanson ever order 
you to make entries in the books for the purpose of hiding expendi- 
tures 'i 

Mr. Garrett. Well, there is only one that I can recall at the mo- 
ment, and that was brought out in connection with the purchase of 
the launch. 

Senator Goldwater. You knew the launch cost $20,000? 

Mr. Garrett. Not at the time of the original recording of the record, 
I did not know that ; no, sir. 

The Chairman. You thought it was costing only $10,000? 

Mr. Garrett. Correct. 

The Chairman. That is what your records showed it to cost? 

Mr. Garrett. Right. 

The Chairman. How did you find out it was costing $20,000 'i 

Mr. Garrett. Some time after the launch was purchased, pri- 
marily, the first time I saw it. After I saw the launch, I knew it 
didn't cost $10,000. 

The Chairman. What else did you do to cover up the actual cost 
of it? 

Mr. Garrett. That is the only thing that I know of, sir. 

The Chairman. You did issue a $10,000 check to cash, didn't you ? 

Mr. Garrett. I have issued many casli checks at the instructions of 
Mr. Swanson. 

The Chairman. You found out since that an additional check for 
cash for $10,000 went to pay for it '( 

Mr. Garrett. Yes, sir. 

The Chairman. You did not know it at the time you made the 
entry ? 

Mr. Garrett. At the time ; no, sir. 

The Chairman. You were told to make the entry for $10,000 as the 
cost of it at the time it was purchased ? 

Mr. Garrett. Right. 

The Chairman. So you know now you were told to make a false 
entry ? 

Mr. Garrett. Right. 

The Chairman. All right. I would like to pursue this organiza- 
tion at the racetrack just a little. It intrigues me. I present to you 
here 2 checks and 2 warrants to substantiate the checks. The 
first one is dated February 23, 1950. It is made payable to Tanforan, 
Ltd., in the amount of $200, drawn on the union, and it is shown 
that it is given for transportation. Who is this Tanforan, Ltd. ? 

Mr. Garrett. That is a racetrack. 

The Chairman. That is a racetrack. Well, let us look at this one 
first. I will hand you this one for 1950. See if you can identify the 
warrant and the check. 

(The document was handed to the witness.) 

Mr. Garrett. Yes, that is one of our checks. 

The Chairman. It is one of your checks. It shows for transporta- 
tion, does it not ? 



IMPROPEiR ACTIVITIES IN THE LABOR FIELD 7653 

Mr. Garrett. Yes, sir. 

The Chairman. Do you know what a box seat costs at the race- 
track ? 

Mr. Garretp. No, I do not, sir. 

The Chairman. Do you know that it costs the exact amount of that 
check ? 

Mr. Garrett. That doesn't surprise me. 

The Chairman. It doesn't surprise you at all to find that is true. 
All right. That may be made exhibit No. 58. 

(The document referred to was marked "Exhibit No. 58" for ref- 
erence and will be found in the appendix on pp. 7895-7896.) 

The Chairman. I hand you another one dated August 29, 1951. 
It seems to be a similar transaction. The check is made to cash, and 
it says for Tanfo, Ltd., subscription, $200. Would you identify that 
check and warrant, please ? 

( The document was handed to the witness. ) 

Mr. Garrett. That looks like another one of the same things. 

The Chairman. That may be made exhibit 59. 

(The document referred to was marked "Exhibit No. 59" for ref- 
erence and will be found in the appendix on pp. 7897-7898.) 

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

The Chairman. Let's see how that compares with the $2,500 check 
that was made exhibit 57. Do you know when those races are run 
down there ? 

Mr. Garrett. I don't remember the dates of them, no, sir. 

The Chairman. Do you know the racing season ? 

Mr. Garrett. No, sir. 

The Cil\irman. Let's check the $2,500 given November 7, 1950. In 
that first year down there, their transportation costs and a check for 
$2,500 general organizational cost, seem to have some connections, 
do they not ? 

Mr. Garrett. I could be. 

The Chairman. Is there anything further? 

Senator Curtis. Mr. Chairman? 

The Chairman. Senator Curtis. 

Senator Curtis. How many members belong to this local ? 

Mr. Garrett. Something over 22,000. 

Senator Curtis. What are their annual dues? Wliat are their 
monthly dues ? 

Mr. Garrett, The monthly dues run from $3 to $6. 

Senator Curtis. $3 to $6? 

Mr. Garrett. Yes. 

Senator Curtis. "\^^iat other income does the union have? 

Mr. Garrett. Rentals from buildings. 

Senator Curtis. How much are the initiation fees ? 

Mr. Garrett. The initiation fees vary from $10 up to $100. 

Senator Curtis. You don't know what the total income from dues 
is per year, do you ? 

Mr. Garrett. I couldn't say. I would have to refer to my financial 
statements. I would say it is somewhere around $2 million. 

Senator Curtis. That is the amount you collect. How much would 
it cost to carry on the ordinary business of the union and its collective 
bargaining functions? 



7654 IMPROPER ACTIVITIES IN THE Lu^BOR FIELD 

Mr. Garrett. I am in no position to answer that. I couldn't say. 

Senator Curtis. It would not cost $2 million, would it? 

Mr. Garrett. The union has steadily gained. 

Senator Curits. In spite of expenditures for many things other 
than expenses of collective bargaining? 

Mr. Garrett. Right. 

Senator Curtis. Are there any special assessments of any kind be- 
sides dues that the members pay ? 

Mr. Garrett. Yes. There is a burial expense fund and a good 
standing fund assessment which is paid annually, $6 a year. 

Senator Curtis. And they are assessed for that? 

Mr. Garrett. Yes. 

Senator Curtis. How much does that pay the family of a deceased 
member ? 

Mr. Garrett. $750. 

Senator Curtis. And this $3 to $6 dues, that is separate and apart 
from any pension or welfare fund ? 

Mr. Garrett, Yes ; that is separate. 

Senator Curtis. You have a pension and welfare fund, do you? 

Mr. Garrett. For the membership ? 

Senator Curtis. Yes. 

Mr. Garrett. Yes. 

Senator Curtis. Where does it get its income, that fund ? 

Mr. Garrett. From the contractors that pay in to that fund. 

Senator Curtis. How big is that fund ? 

Mr. Garrett. That I am not familiar enough with. 

Senator Curtis. How much do the contractors have to pay ? 

Mr, Garrett. I am not qualihed to ansAver that, but I think it is 10 
cents an hour. 

Senator Curtis, Ten cents an hour ? 

Mr. Garrett. I believe that is it, but as I say, that is out of my 
jurisdiction. 

Senator Curtis. WTio runs the pension and welfare fund ? 

Mr. Garrett. The C. W, Sweeney Co, 

Senator Curtis. I mean what officer of the union runs it ? 

Mr. Garrett. Again I am not qualified to answer that, as it is out- 
side of my jurisdiction, but I know C. W. Sweeney Co. operates the 
welfare fund. 

Senator Curtis. Does Mr. Swanson have anything to do with that? 

Mr. Garrj ,TT. I believe he is a trustee of that. 

Senator Cubtis. Who else are trustees ? 

Mr. Garrett. I don't know all of them. I believe Vandewark is,, 
and Metz. As I say, welfare is out of my jurisdiction. I have noth- 
ing to do with the w^elf are. 

Senator Curtis. That is all. 

The Chairman. The committee will stand in recess until 10 : 30 
tomorrow. 

(Whereupon, at 4: 55 p. m., the committee was recessed, to recon- 
vene at 10 : 30 a. m. Thursday, January 23, 1957.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



THURSDAY, JANUARY 23, 1958 

United States Senate, 
Select CoMMrrTEE on Improper Activities 

IN THE Labor or Management Field, 

Washington, D. G. 

The select committee convened at 10 : 30 a. 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 
committee) presiding. 

Present : Senator John L. McClellan, Democrat, Arkansas ; Senator 
Irving Ives, Republican, New York; Senator Barry Goldwater, 
Republican, Arizona; Senator Karl E. Mundt, Republican, South 
Dakota; Senator Carl T. Curtis, Republican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel ; Jerome S. Adler- 
man, chief assistant counsel; Pierre E. G. Salinger, investigator; 
Joseph I. Gordon, a GAO investigator on loan to the committee; Ruth 
Young Watt, chief clerk. 

(Members of the select committee present at the convening of the 
session were Senator McClellan, Mundt, Curtis, and Pat McNamara.) 

The Chairman. The committee will come to order. 

Call the next witness, Mr. Counsel. 

Mr. Kennedy, Mr. Clarence Mathews, Mr. Chairman. 

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

Mr. Mathews. I do. 

TESTIMONY OF CLARENCE R MATHEWS 

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

Mr. Mathews. My name is Clarence F, Mathews. I live at 2001 
45th Avenue, in San Francisco. I am recording corresponding secre- 
tary for the Operating Engineers, Local Union No. 3. 

The Chairman, Recording secretary ? 

Mr. Mathews. Recording corresponding secretary. 

The Chairman. Mr, Mathews, do you waive counsel ? 

Mr. Mathews. Yes ; I do. 

The Chairman. Thank you very much. Proceed, Mr. Kennedy. 

Mr. Kennedy. How long have you held that position, Mr. Mathews? 

Mr. Mathews. Since July 1, 1941. 

7655 



7656 IMPROPEIR ACTIVITIES IN THE LABOR FIELD 

The Chairman. 1921 or 1941 ? 

Mr. Mathews. 1941. 

Mr. Kennedy. 1941. What are your responsibilities? 

Mr. Mathews. My responsibilities in this particular position is to 
authorize the payment of moneys spent for the union 

Mr. Kennedy. To do what about the monej' ? 

Mr. Mathews. To authorize the payment of funds. 

The Chairman. Authorize the payment of funds ? 

Mr. Mathews. Yes, sir. And to keep the minutes. 

The Chairman. All right. 

Mr. Kennedy. You were appointed to that position by the inter- 
national ? 

Mr. Mathews. That is the international, yes. That is the bylaws — 
would you please not flash the lights? They bother me. I am 
bothered enough anyway. 

The Chairman. I believe you will be less bothered if you dispense 
with your chewing gum. It will be better for us. We could hear 
you better. We will suspend the flashes, gentlemen. All right. 

As I understand, you are appointed by the international with the 
authority to direct the spending of the local's money ; is that correct ? 

Mr. Mathews. No, I don't fciow if that is exactly correct or not. 
I was asked to take this job by ISIr. Swanson, iNIr. Lawrence, who I 
replaced, and Mr. Carter, who was the vice president at that time. 

The Chairman. Vice president of what? The international? 

Mr. Mathews. The international union ; yes, sir. 

The Chairman. ~\Vliat I am trying to determine is whether the 
membership or the executive board of that local elected you, or if 
your appointment actually came from the international authorities. 

Mr. Mathews. jNIr. Chairman, I was elected by the members of the 
local union as recording corresponding secretary. 

The Chairman. All right. lAHiere does the international come 
into the picture ? 

Mr, Mathews. Well, I was appointed — I replaced a man by the 
name of Frank Lawrence. That was to sign the checks for the 
expenditures of money, yes. 

Mr. Kennedy. You were the guardian over the funds for the inter- 
national union ? 

Mr. IVIathews. Well, I guess so. You could say that. 

Mr. Ivennedy. You made sure that the money was not being mis- 
used, is that right ? 

Mr. Mathews. That is right. 

Mr. Kennedy. Getting into those responsibilities that you had, were 
you aware of the Stockton land deal, the property in Stockton, Calif., 
that was purchased by the union ? 

Mr. Mathews. Yes, sir. 

Mr. KJENNEDY. Were you aware that the union paid some $33,500 
for the land, when it in fact only cost $29,500 ? 

Mr. Mathews. At that time I was not, sir. 

Mr. Kjennedy. You were not ? 

Mr. Mathews. At that time I was not. 

Mr. Kjennedy. You signed the check, however, for the purchase of 
the land? 

Mr. Mathews. Yes, I did. 



niPROPER ACTTVITIES EST THE LABOR FIELD 7657 

Mr. KiiNNEDY. But you didn't examine into the records ? 

Mr. Mathews. No, I did not. 

Mr. Kennedy. You did not ? 

Mr. Mathews. No, sir. 

Mr. Kennedy. That wasn't part of your responsibilities, to be sure 
that the money was not being misused ? 

Mr. Mathews. Well, sir, I have been up there twice on investigat- 
ing committees from the international, and with your own committee 
up there, and they can tell you very frankly I know all about it now. 
I did not know about it at that time. 

Mr. Kennedy. Had you been up to see the land yourself? 

Mr. Mathews. I was up there and looked at it, yes, sir. I was up 
there probably for maybe a half an hour. 

Mr. Kennedy. Did you know that the union was selling plot No. 1 
for $6,500, when, in fact, it was worth approximately $20,000? 

Mr. Mathews. No, I did not. I knew what the union got for it. 

Mr. lijENNEDY. You didn't inquire into that ? 

Mr. Mathews. No, I did not. 

Mr. IvENNEDY. And plot No. 2, which was sold by the union for ap- 
proximately $10,000, was, in fact, worth $24,000 ? 

Mr. Mathews. Sir, I will say to you that I knew that the land was 
being sold, that the union was not going to lose any money on it. I 
think at that time I was told we would gain some thousand dollars 
on the resale. 

Mr. IvENNEDY. Who told you this ? 

Mr. IVIathews. Mr. Swanson. 

Mr. I^nnedy. You did not know of any of tliis finagling with the 
land? 

Mr. Mathews. I did not, sir, because 

Mr. IvENNEDY. What about plot No. 3? Did you know 

Senator Mundt. Just a moment. He was going to add something. 
You said you did not because, and the counsel cut you off. 

Why didn't you know ? 

Mr. Mathews. Because I did not go up there. There is a lot of land 
there. That thing is about — well, I don't know how far it is, a couple 
or three blocks long, all of that land there. 

Senator Mundt. It was 7 acres, I understand. 

Mr. Mathews. Well, I don't know about that. I couldn't answer 
that. 

Senator Mundt. But you didn't make any check into the reasons the 
land was being handled in this way ? 

Mr. Mathews. No, sir; no more than I did in the other 14 or 15 
pieces of property that we purchased. 

Senator Mundt. Are there 14 or 15 more examples of how the union 
money was used to benefit union officials ? 

Mr. IVLiTHEws. No. The benefit of the union officials, I am one of 
those, and I claim no part of any part of it. 

Senator Mundt. Well, let's say some of the union officials. 

Mr. Mathews. All right, some of them, perhaps. I don't know 
that. 

Senator Mundt. There are 10 or 14 more of them ; did you say ? 

Mr. Mathews. Yes, sir. We purchased land in — well, all the places 
we have offices. We have buildings on most of them. 



7658 IMPROPEK ACTWITIES IN THE LABOiR FIELD 

Senator Mundt. Is it a standing operating procedure for some of 
the officials of the Union to sort of run a real-estate speculative office 
on the side to buy and sell land with union funds and pocket the 
profit? 

Mr. Mathews. You say "speculative." I don't say that. I say that 
we purchased property to build buildings on. 

Senator Mundt. There isn't anything inimical about the word spec- 
ulative. That is a legitimate enterprise in which real-estate people 
engage. If they buy land, they hope it will go up in price, and they 
will make money. There is nothing wrong with that. But it seems 
to me to be a curious use to be made of union pension funds, union 
dues, by certain union officials. If they use it, and they make a profit, 
they pocket the money. I woidd suspect the other side of the coin would 
hold. If they lose money, it is the union's loss. It is a "heads, I win, 
tails, you lose" transaction. It is one of the things that this committee 
is trying to stop, to protect the working men and women of this coun- 
try who pay your salary and who pay the salaries of the other union 
officials. 

That is all. 

Mr. Kennedy. Going on to the third piece of propertj^, plot No. 3 
on the chart, were you aware of the fact that you were selling that 
piece of property to certain union officials, Doran and Swanson, for 
$15,000? 

Mr. Mathews. Yes. You have a picture taken there that has my 
signature on it. 

Mr. Kennedy. So you were aware of that fact ? 

Mr. Mathews. I was not aware of it, and I still don't believe it. 

Mr. Kennedy. You still don't believe what ? 

Mr. Mathews. That that name was on top there when I signed it. 

Mr. Kennedy. You did sign this ? 

Mr. Mathews. Yes, sir. 

Mr. Kennedy. And that is the deed over to these individuals? 

Mr. Mathews. Yes, sir. You have 3 or 4 of them there. I know 
you have them because I was up there when they were taken. I was 
with your committee when they were there. As a matter of fact, I 
drove them up there to get all these pictures. 

Mr. Kennedy. Did you have any discussions about how much the 
land should cost to whoever was buying it, this plot No. 3 ? 

Mr. Mathews. I presume that I was told what it would cost. 

Mr, Kennedy. How did you arrive at the figure at which you would 
sell the land? 

Mr. Mathews. I didn't arrive at it. 

Mr. Kennedy. You didn't have any discussions about that? 

Mr. Mathews. No, sir. 

Mr. Kennedy. You had no discussions at all ? 

Mr. Mathews. No, sir. 

Mr. Kennedy. Who reached the determination as to how much the 
land would be sold for ? 

Mr. Mathews. Well, Mr. Swanson bought all the land and he sold 
all the land. 

Mr. Kennedy. What? 

Mr. Mathews. Mr. Swanson bought all the land and he sold all the 
land. He conducted all the business of the union. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7659 

Mr. Kennedy. You were there as a responsible figure of the inter- 
aiational to insure that the money was not being misused. 

Mr. Mathews. I do not deny my responsibility. I accept it. 

Mr. Kennedy. Did you meet your responsibilities ? 

Mr. Mathews. I accept the responsibility ; yes, sir. 

Mr. Kennedy. Did you meet your responsibility ? 

Mr. Mathews. I did not. 

Mr. Kennedy. You say that you signed this deed in blank ? 

Mr. Mathews. I did not say that, sir. 

Mr. Kennedy. Then Mr. Doran and Mr. Swanson's name 

Mr. IVLvTHEWS. I know about that. I have seen them 4 or 5 times 
already. 

The Chairman. So that the record may be kept straight, the Chair 
presents to you exhibit 11 in the testimony already taken, which is 
a deed, a photostatic copy of a deed, from your union to S. V. Swanson 
<and Ed Doran. I will ask the witness to examine it so that we make 
sure that the record reflects the deed we are discussing. 

(The document was handed to the witness.) 

Mr. Mathews. Your Honor, I signed this deed. That is my sig- 
nature. 

The Chairman. Is that the deed you are discussing ? 

Mr. Mathews. Yes, sir. 

The Chairman. All right. Exhibit 11 is the deed you are discussing. 
Proceed. 

Mr. Kennedy. The names of Mr. Swanson and Mr. Doran appear 
on that deed ? 

Mr. Mathews. Yes, sir ; it is on here now. 

Mr. Kennedy. And you signed the deed? Your name appears 
there? 

Mr. Mathews. That is my name and I signed that, I believe; yes, 
sir. 

Mr. Kennedy. That is your signature ? 

Mr. Mathews. I think so. 

Mr. Kennedy. Then you must have known at the time, Mr. Mathews, 
that you were deeding the property to Mr. Swanson and Mr. Doran. 

Mr, Mathews. Well, of course, the evidence is here that I did. 
But this is a picture of a picture ; is it not ? 

Mr. Kennedy. Yes. 

The Chairman. It is a picture of what ? 

Mr. Mathews. A picture of a picture. 

The Chairman. A picture of a picture ? 

Mr. Mathews. Yes, sir. In the recorder's office they have a pic- 
ture of this. And then you have taken a picture of that picture, and 
you give it to me. 

The Chairman. Is there anything wrong with that ? Does that not 
reflect the original deed ? 

Mr. Mathews. I cannot say that, sir. I only can say that you can- 
not find erasures on a picture of a picture. 

The Chairman. Well, I don't know about that. Do you claim 
that that deed has been tampered with ; has been forged ? 

Mr, Mathews. I cannot say that, because I do not loiow. 

The Chairman. I don't think there is any question about it, about 
the authenticity of that photostatic copy. Do you question it? 



7660 IMPROPEIR ACTTVITIE'S IN THE LABOR FIELD 

Mr. Mathews. I don't know, sir. Everything is there, so I can't 

The Chairman. At any rate, you do not deny that Doran and 
Swanson got title to the land, do you ? 

Mr. Mathews. I can't deny it. Here is the picture. 

The Chahjman. All right. Proceed. 

Senator Curtis. Mr. Chairman ? 

The Chairman. Senator Curtis. 

Senator Curtis. Mr. Mathews, your actions would not be any 
better where it established that you executed this deed without know- 
ing who the grantee was. That property belonged to the union, 
didn't it? 

Mr. Mathews. Yes ; it did. 

Senator Curtis. Did you have any authority to execute a deed and 
acknowledge it before a notary without knowing who the purchaser 
was and what the terms were, and that the interests of the union 
were protected ? I do not think you bettered your position by saying 
that you didn't know who it was made to. Maybe they did cover 
it up with a blotter. Maybe it was in blank. 

But I do know that if you had been a faithful trustee of other 
people's money and property in your charge, that you would have 
found out those things before you had attached your name and held 
up your hand before a notary and acknowledged the deed. That is 
all, Mr. Chairman. 

Mr. Kennedy. I might add, this is a photostatic copy of the copy 
that is in the recorder's office. 

The Chairman. In other words, they record the deeds by taking 
photostats of it, and this is a photostat of the recorded photostat? 

Mr. Kennedy. That is correct. 

The Chairman. All right. 

Mr. Kennedy. Going on 6 months after this, Mr. Mathews, the 
union repurchased this same piece of property for $35,000, which 
they had sold for if 15,000. 

Mr. Mathews. I did not know it was the same piece of property, 
although I did make a trip up there and take a look at it. But this 
property had been much changed when I went up there again; the 
second time I went up there to see it. 

Mr. Kennedy. You were on the property once. You sold this 
section of property. You went up there again and saw the property 
that you were repurchasing, and you repurchased that for $35,000. 
Do you have any explanation at all for that ? 

Mr. Mathews. No, sir, except that it was finally brought out that 
we did that ; yes. But at this time I did not know it. 

Mr. Kennedy. You were the representative of the international, 
you made the trips up there, you knew the property, and you had 
responsibilities. Can you explain that at all to us ? 

Mr. Mathews. No ; I can't explain it. 

The Chairman. What is your salary, Mr. Mathews ? 

Mr. Mathews. $205 a week, I have also a $35-a-week expense 
account. 

The Chairman. And an expense account. What does that 
amount to ? 

Mr. Mathews. $35. 

The Chairman. $35. 



IMPROPER ACnvmES IN THE LABOR FIEOLD 7661 

Mr. Mathews. Yes, sir. 

The Chairman. The union, from my viewpoint, far overpaid you 
for the responsibility you accepted, and for the protection you gave 
to the members. 

Mr. Mathews. I must accept that, I guess, if you make a statement 
of that sort. 

The Chahjman. I don't make it on anything except on the basis 
of the record here and your testimony. I think you will agree with 
me. Proceed. 

Senator Mundt. Mr. Mathews, I am kind of curious to know about 
this. You are a forthright witness before this committee. You seem 
to be telling us the truth as far as you can. 

Mr. Mathews. I am sorry, sir ; I am not hearing you. 

Senator Mundt. I will start louder. I am curious to know what 
motivated you to do these things. You appear to be a good, forth- 
right witness, you answer the questions directly, and still you were 
engaging in some pretty reprehensible practices as recording secretary. 

Was this because, in your opinion, you did not have the necessary 
training and background to do the job well? Is it because you were 
in on the plot and you were getting part of the loot ? Or is it because 
you were afraid to challenge him because it would mean the loss of 
your job? I can think of three possibilities. If it is none of those, 
you tell me what it is. If it is one of those, you choose the one. 

Mr. Mathews. Well, Senator, I have been almost 17 years on the 
job. For 17 years I haven't got along too well with the manager. 
After a while you just don't — well, you just don't do anything any 
more. I told you there is, I think, 15 pieces of property we bought 
there. There is nothing wrong with it. You found one piece of 
property there is sometliing wrong with. The record would prove 
tliat everything had been done as it should be done, so why shouldn't 
I believe in this case it would be the same thing ? 

Senator Mundt. In other words, you are telling us that you had 
no reason to suspect there was anything wrong ? 

Mr. Mathews. I liad no reason to suspect ever that there was any- 
thing with any of the purchases of the property, any property. 

Senator Mundt. On all of these other 14, did you sign deeds in 
blank? 

Mr. Mathews. No, sir. There is only one other, I believe, San Jose 
j>roperty. 

Senator Mundt. Did you sign that one in blank, too ? 

Mr. Mathews. No, I did not. No. I don't think I did, anyway. 
They have a picture of that there, too, I believe. 

Senator Mundt. You would have the committee accept as your po- 
sition the fact that you think you fulfilled your duties with complete 
responsibility ? 

Mr. Mathews. I think I did, yes. 

Senator Mundt. You did the job as well as you were able to do? 

Mr. Mathews. As well as I was able to do, I think so. 

Senator Mundt. And that you didn't profit from it personally ? 

Mr. Mathews. I did not profit from it personally, on that or any- 
thing else. 

Senator Mundt. Do you think Mr. Swanson profited from it per- 
sonally ? 



7662 IMPROPER ACTrviTiES m the LABOGR FIELT) 

Mr. Mathews. Mr. Senator, I know, because I was there, and I wa& 
there when the investigating committee was. You ask me if I think. 
You know that I know. You shouldn't ask me that question, I don't 
think. 

Senator Mundt. Tell us what you know. 

Mr. Mathews. Well, what they found out. They have all the evi- 
dence there. 

Senator Mundt. In other words, now that Mr. Swanson profited 
fi'om it personally? 

Mr. Mathews. I do know it now, yes. 

Senator Mundt. When the, international made its investigation,, 
they found out he profited from it personally, did they not? 

Mr. Mathews. That is right, they did. 

Senator Mundt. And they ousted him, is that right ? 

Mr. Mathews. They did what to him ? 

Senator Mundt. Ousted him. 

Mr. Mathews. Yes, sii-. 

Senator Mundt. Did they in any way reprimand you at that time ? 

Mr. Mathews. Yes, they did, I think, but not publicly. 

Senator Mundt. What did they say? 

Mr. Mathews. I don't remember, sir. 

Senator Mundt. Did they decrease your salary or change your 
authority or lower your rank or take any punitive action against you 
in any way? 

Mr. Mathews. No, sir, not that I know of, no. 

Senator Mundt. It was just what you may call sort of a letter of 
reprimand ? 

Mr. Mathews. What I would call a what ? 

Senator Mundt. Letter of reprimand, a criticism ? 

Mr. IVIathews. Well, call it criticism, I presume. 

Senator Mundt. Who was it that criticized you? Mr. Maloney? 

Mr. Mathews. No, I don't know, sir. I am not sure. I have been 
criticized so much here lately that I don't remember who criticizes 
me here, there, or the other place. I don't remember who criticized 
me. I know I was criticized. 

Senator Mundt. In writing or verbally. 

Mr. Mathews. No. At the hearing. 

Senator Mundt. At the hearing ? 

Mr. Mathews. Yes. Mr. Swanson's trial. 

Senator Mundt. Maybe by a lawyer, then? Maybe by the prose- 
cuting attorney ? Would that be it ? I am trying to find out whether 
anybody in the international union office, any of the international 
officers, criticized you. 

Mr. Mathews. No, I don't think so. 

Senator Mundt. You think Mr. Maloney thought that was all right ? 

Mr. Mathews. No, I don't think he thought it was all right. I 
know he didn't think it was all right. 

Senator Mundt. But he did not criticize you? 

Mr. Mathews. No, he did not, that I know of. 

Senator Mundt. Let me put it this way : Who was it that took Mr. 
Swanson out of the job after they found out what he had been doing? 

Mr. Mathews. Well, I think the international executive board. 



IMPROPER ACTH^TIES IX THE LABOR FIELD 7663 

Senator Mundt. Did the international executive board criticize you ? 
Did they commened you ? Did they put a gold star on your record, 
or wliat did they do'^ 

JNIr. Mathews. I was criticized, I think, by a couple of the vice 
presidents. I know which ones, I think, which criticized me. 

Senator Mundt. I am not so much concerned as to which ones as to 
Avhat they said. Did they say it in writing, in a letter, or was it just 
orally. 

Mr. JVIathe^vs. In the hearing. I believe you have a transcript of 
the hearing here, sir. 

Senator Mundt. You wei'e not criticized beyond what was said in 
the transcript of the hearing. Is that a fair statement ? 

Mr. Mathews. I think so. 

Senator Mundt. All right. 

Mr. Kennedy. You say you went to the property a second time. 
Who was there with you the second time? 

Mr. ]VIathews. I do not know. 

Mr. Kennedy. Was Mr. Swanson there with you ? 

]\Ir. Mathews. I think so, but I don't know. I can't answer that 
question. I don't know. 

Mr. Kennedy. What is your best recollection on it ? 

Mr. Mathews. Well, my best recollection is nothing. I was told 
at the trial there were a number of people there. 

Mr. Kennedy. Do you think Mr. Doran was there with you ? 

Mr. Mathews. Well, do you want me to think or do you want me to 
know ? 

You swore me. 

Mr. Kennedy. I asked you the other day, and I believe you said that 
you thought 

Mr. Mathews. I thought. 

Mr. Kennedy. What is your best recollection as to who was there 
with you ? Mr. Marshall Swanson — was he there with you ? 

Mr. jNIathews. That I do not know. He says he was. 

Mr. Kennedy. What about Mr. Victor Swanson ? 

iVIr. Mathew^s. W^ell, I think he was. 

Mr. Kennedy. All right. That is all right. I am not asking you 
wliether you are positive. You think he was there. 

]\lr. Mathews. Thank you for that. You are asking me things that 
I liave been over so many times. 

Mr. Kennedy. What about Mr. Doran, was he there ? 

Mr. Mathews. I would imagine he was ; yes. 

INIr. Kennedy. Where did you go other than this piece of property? 
Did you go around tlie city of Stockton ? 

Mr. INIathews. Yes ; I think we looked at some other property there. 

Mr. Kennedy. What was the other property that you looked at ? 

]Mr. Mathews. Well, do you want me to tell you where it was ? 

Mr. Kennedy. Was there a piece of property called the Kenworthy 
property ? 

Mr. Mathews. I don't know whether we looked at it at that time 
or not. But we own some Kenworthy property. 

Mr. Kennedy. Kenworthy property ? 

Mr. Mathews. Yes, sir. 



7664 IMPROPER ACTivrriES m the labor field 

Mr. E^ENNEDY. Tell me this: You say you didn't profit anything 
out of this Stockton deal ? 

Mr. Mathews. I said that ; yes, sir. 

Mr. I^NNEDY. You did not get any money ? 

Mr. Mathews. No money. 

Mr. Kennedy. You did not know at the time that any money was 
going to Doran or Swanson ? 

Mr. Mathews. I didn't know at the time. 

Mr. Kennedy. You didn't learn until the international began its 
investigation ? 

Mr. Mathews. That is right. 

Mr. Kennedy. You didn't know anything about this land deal, the 
way they finagled the land ? 

Mr. Mathews. No, sir. 

Mr. Kennedy. Did you ever have any conversations with Mr. 
Swanson or Mr. Doran about having the same kind of operation on 
the Kenworthy property as you had had on the Stockton land deal ? 

Mr. Mathews. I don't know what you are talking about, sir. 

Mr. Ivennedy. Did you ever talk to them about setting up an 
intermediate corporation ? You paid $30,000 for that land, did you 
not, the Kenworthy land ? 

Mr. Mathews. That I don't know, the exact amount. 

Mr, Ivennedy. Did you ever discuss the fact that you paid $30,000 
for that land, that you would set up an intermediate corporation and 
sell the land to the intermediate corporation for $30,000 and then 
allow them to sell it for $45,000, which is what you could get for the 
property at that time ? 

Mr. Mathews. I don't know what you are talking about, sir. 

Mr. Kennedy. Didn't you come back 

The Chairman. Wait a minute. You say you don't know what he 
is talking about. He has asked you definite questions whether you 
had any conversation with respect to setting up an intermediate cor- 
poration. 

Mr. Mathews. I did not. 

The Chairman. That is the answer, then. Proceed. 

Mr. Kennedy. Was somebody actually approached on it? You 
were going to lease it for a period of 5 years and then sell this piece 
of property to them, and they were going to establish a drive-in thea- 
ter on this property ? 

Mr. Mathews. No, sir. 

Mr. Ivennedy. You had no conversations like that? 

Mr. Mathews. I did not. 

Mr. Kennedy. You never heard anything about it at all ? 

Mr. Mathews. I did not. 

Mr. Kennedy. You say you were in Washington around January 
1957, shortly after the committee was set up. After you got back to 
San Francisco, did you drive down to see Mr. Doran and tell him 
that this committee had been set up, and that you thought they would 
start looking into some of these kmds of deals and you better not go 
through Avith it? 

Mr. Mathews. I did not. 

Mr. Kennedy. You did not tell them that the McClellan committee 
had been set up, and you better not go through with this business 
deal? 



IMPROPER ACTWrTIES IN THE LABOR FIELD 7665 

Mr. Mathews. I did not know that the McClellan committee was 
ever set up nntil they came to San Francisco. 

Mr. Kennedy. You never heard of the McClellan committee ? 

Mr. Mathews. Yes, I heard of the McClellan committee, but I did 
not know they were coming to San Francisco until they came to the 
San Francisco office. 

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

Mr. Kennedy. You were also keeping the minutes, were you not ? 

Mr. Mathews. That is right. 

Mr. Kennedy. And the official minutes were kept in your office? 

Mr. Mathews. That is right. 

Mr. Kennedy. You had tliem in a steel cabinet ? 

Mr. Mathews. That is right. 

Mr. Kennedy. You had tlie key to the steel cabinet ? 

Mr. Mathews. I had one of the keys, yes. 

Mr. Kennedy. Wlio else had a key ? 

Mr. Mathews. My secretary. And, I don't know, maybe Swanson 
had one. 

Mr. Kennedy. Do you know if he had one ? 

Mr. Mathews. I am not sure. 

Mr. Kennedy. In these six different instances that we have been 
able to show, the minutes were altered. Were you aware of that? 

Mr. Mathews. I was aware of it when Mr. Moore, the auditor of 
the international, came out there. 

Mr. Kennedy. Can you give me any explanation as to how they 
were altered? 

Mr. Mathews. I cannot. 

Mr, Kennedy. You had the key to the office, you had the key to the 
steel cabinet? 

Mr. Mathews. That is right, sir. 

Mr. Kennedy. Nobody else could get into the cabinet except you 
and your secretary. 

Mr. Mathews. Yes, they do have. Somebody else could have had a 
key to those cabinets ; there are thousands of them made. 

The Chairman. As I understood the witness, your secretary, when 
she testified, she said that you dictated the minutes of the meeting to 
her. 

Mr. Mathews. That is right. 

The Chahiman. Wlien you dictated the minutes of the meeting to 
her, did you cover all of the transactions that you knew had taken 
place ? 

Mr. Mathews. Yes, sir. 

The Chairman. All right. Then the original minutes that she 
typed up reflected the actual transactions that had taken place at 
those meetings? 

Mr. Mathews. No. There were things that were off the record in 
there. We have those, and I think everybody does. 

The Chairman. I am talking about business transactions. 

Mr. Mathews. That is right. 

The Chairman. In other words, tlie changes in the minutes reflect- 
ing motions made and actions taken, those changes made do not 
reflect what actually transpired at the meeting ? 

Mr. Mathews. The changes ? 

21243— 5S—pt. 19 11 



7666 IMPROPEIR ACTrV'ITIES Ds THE Lu\BOR FIELD 

The Chairman. Yes, sir. 

Mr. IVIathews. The changes did not reflect what happened at the 
meeting. 

The Chairman. In other words, that was a false entry as to the 
action that had been taken ? 

Mr. Mathews. Yes, sir. 

The Chairman. And you dictated to the secretary and she typed 
up the true proceedings of those meetings ? 

Mr. Mathews. Yes, sir. 

Mr. Kennedy. And you have no explanation as to how they were 
altered ? 

Mr. Mathews. I do not have an explanation. 

Mr. Kennedy. You did not know they were being altered at the 
time? 

Mr. Mathews. I did not know. 

Mr. Kennedy. You did not know until the international made 
its investigation ? 

Mr. Mathews. That is right. 

The Chairman. Have you any information as to who did make 
those alterations ? 

Mr. Mathews. I do not have the information as of now. 

]Mr. Kennedy. You were with the union at the time it purchased 
its boat? 

Mr. Mathews. Yes, sir. 

Mr. Kennedy. Were you aware at that time that the boat cost 
$20,000? 

Mr. Mathews. Do you mean at the date of the purchase ? 

Mr. Kennedy. Well, there or about that time, the date or there- 
abouts. Were you aware on the date of the purchase or within a 
month of that time ? 

Mr. Mathews. Yes ; I was aware. I must have been aware, because 
I signed the check. 

Mr. Kennedy. For the $10,000 ? 

Mr. Mathew^s. Yes, sir. 

Mr. Kennedy. And were you aware 

Mr. Mathews. No ; not $10,000. 

Mr. Kennedy. It was three checks— $8,000, $500, and $500. 

Mr. Mathews. I think so. 

Mr. Kennedy. Were you aware of the fact that the boat actually 
cost $20,000? 

Mr. Mathews. Shortly after that, yes. 

Mr. Kennedy. Within what period of time ? At the time you wrote 
the second check? 

Mr. Mathews. The second check. 

Mr. Kennedy. For $10,000 ? 

Mr. Mathews. I think I was told then it cost $20,000. 

Mr. Kennedy. That was dated July 30 ? 

Mr. Mathews. I don't know. 

Mr. Kennedy. That was the check to the Stolte, Inc ? The construc- 
tion company. 

Mr. Mathews. I think so. I am pretty sure. You are talking 
about a check that I endorsed on the back so they could get it cashed? 

Mr. Kennedy. It was made out to cash. Why did you agree to do 
that, Mr. Mathews ? 



IMPROPER AOTTVITIES m THE LABOR FIELD 7667 

Mr. Mathews. I sign a lot of cliecks that are to cash. 

Mr, Kennedy. But you knew that this was going for the purchase 
of the boat. 

Mr. Mathews. I see nothing wrong with it. The boat was owned 
by the union and that money was going to buy the boat. Wliat was 
wrong with that? Was there something wrong with that? 

The Chairman. There may not be anything wrong with it, except 
that the proper business procedure would be to make the check to the 
owner of the boat, the one you purchased it from, instead of making it 
for cash and entering it on the books, for the purpose of constructing 
on some property. 

Mr. Mathews. There is nothing wrong with it that I know of. 

The Chairman. I think you would agree that there is something 
wrong in handling a transaction like that. It would be calculated to 
cover up the true purpose of the expenditure ; would, it not ? Wouldn't 
that be the purpose of it ? 

Mr. Mathews. Yes, sir ; that would be the purpose of it. It was, 
I presume ; I think so. 

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

The Chairman. Here is a warrant that appears to have been signed 
by you, which has been made exhibit 20 in these hearings. I present 
this warant to you, exhibit 20, and ask you if the warrant does not 
state that the $iO,000 on July 30, 1947, made payable to cash, was for 
Stolte, Inc., Oakland Building. 

Mr. Mathews. Yes, sir. I have seen that a number of times already. 

( The document was handed to the witness. ) 

The Chairman. Sir? 

Mr. Mathews. I have seen it a number of times already. 

The Chairman. Well, I present that warrant to you. 

Mr. Mathews. I signed the warrant. 

The Chairman. "Wlien you signed that warrant, did you know at 
that time that that money was not going to that company, that con- 
struction company, but that it was going to pay for a boat ? 

Mr. Mathews. Not at the time I signed this warrant. 

The Chairman. Not at that time? 

Mr. Mathews. No, sir. 

The Chairman. The check was written when? It was the same 
date. I believe you testified that at the time you wrote the check you 
knew it was going for a boat, 

Mr. Mathews. I signed the check. I signed the back of the check 
for the money. I knew where it was going. 

The Chairman. When you signed the check for the money, to cash ? 

Mr. Mathews. Yes. 

The Chairman. You knew it was going then to pay for a boat? 

Mr. Mathews. Yes, sir. 

The Chairman, When you signed the warrant, you say you didn't 
know it was going to pay for a boat ? 

Mr. Mathews. No, sir. 

The Chairman. Let us see the check and the date of it. 

Mr. Kennedy. Wouldn't the warrant and the check be written on 
the same day, the same time ? 

Mr. Mathews. They would be written at the same time, but I prob- 
ably wouldn't sign them the same time. 



7668 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. You would sign the check without seeing the war- 
rant ? 

Mr. Mathews. No ; the warrant is with the check. 

Mr. Kennedy. Then you would see that warrant at the time ? 

Mr. Mathews. No; I probably wouldn't. I probably would sign 
the check so that it could be disbursed, and I would go over the war- 
rants afterward. 

jNIr. Kennedy. You said you got the warrant and check at the same 
time, and, therefore, you would have signed the warrant when you 
signed the check. 

Mr. Mathews. Mr. Kennedy, I have signed $100,000 of these checks, 
at least that many. The checks are brought in one basket, and the 
warrants and things are brought in another one. 

The Chairman. I present to you a photostatic copy of a check dated 
July 30, 1947, made payable to cash, in the amount of $10,000. The 
check was signed by P. E. Vandewark and C. F. Mathews on the Hi- 
bernia Savings & Loan Society. I ask you to examine that check and 
state if you identify it and if you signed it. 

(Thedocument was handed to the witness.) 

Mr. Mathews. I signed it and I identify it. 

The Chairman. You say at the time you signed that check, that you 
knew that the cash that the check called for was going to pay for the 
boat? 

Mr. Mathews. "VVlien I made this endorsement here, I knew where 
it was going. 

The Chairman. You knew whei-e it was going 'I 

Mr. Mathews. Yes, sir. 

The Chairman. The check and the warrant bear the same date ? 

Mr. Mathew. That is right. 

The Chairman. Between the time you signed the warrant, when 
you say you didn't know, and the time you signed the check, how did 
you get information that caused you to know that it was going to pay 
for a boat and not going to a construction company ? 

INIr. Mathews. I learned it from Mr. Swanson. 

The Chairman. Mr. Swanson told you in between the time you 
signed the warrant and the time you signed the check, that that was 
not true, that it was not going for construction, that it was going to 
pay for a boat. 

Mr. Mathews. That is right. 

The Chairman. Knowing that, you signed the check ? 

Mr. Mathews. Stolte was Avorking on the Oakland building at that 
time. 

The Chairman. I understand. But that was a false entry in your 
record ? 

Mr. Mathews. That is right. 

The Chairman. And you knew it was a false entry when you 
signed the check ? 

Mr. Mathews. Yes. 

The Chairman, That check may be made exhibit No. 60 ? 

(The document referred to was marked "Exhibit No. 60" for refer- 
ence and will be found in the appendix on p. 7809.) 

The Chairman. I present to you a photostatic copy of a letter dated 
September 18, 1947. The letter is addressed to you, from Mr William 
E. Maloney, general president. International Union of Operating 



IMPROPER ACTIVITIES IN THE L.\BOR FIELD 7669 

Engineers. I present this letter to you, ask you to examine it, and 
state if you identify it. 

(The document was handed to the witness.) 

Mr. Mathews. I do. 

The Chairman. It may be made exhibit 61. 

(The document referred to was marked "Exhibit No. 61" for refer- 
ence and will be found in the appendix on p. 7900.) 

The Chairman. This is dated Septeniber 18, 1947, on the Inter- 
national Union of Operating Engineers' stationery, addressed to Mr. 
C. F. Mathews, recording secretary, local 3, room 404, 1019 Market 
Street, San Francisco, Calif. 

Dear Sir and Brother : I am in receipt of a communication from your auditor 
who examines the reports of local union 3, in which attention is called to the 
fact that you bought a launch for $10,000. I thought it was distinctly under- 
stood by you as representing local union 3 that you would communicate with 
this office to get permission to make expenditures of this kind. As this is a 
violation of this understanding, I wish you would communicate with this office 
and explain this expenditure. 

Did you respond to that letter ? 

Mr. Mathews. I did, sir. 

The Chairman. I hand you here a photostatic copy of a letter 
dated September 24, 1947, purportedly to have been signed by you, 
addressed to William E. Maloney, general president. International 
Operating Engineers. I ask you to examine it and state if you iden- 
tify it. 

(The document was handed to the witness.) 

Mr. Mathews. Yes, sir, I wrote the letter. 

The Chairman. That may be made exhibit No. 62. 

(Document referred to was marked "Exhibit No. 62" for reference 
and is as follows :) 

The Chairman. This letter is dated September 24, 1947, by air 
mail, to Mr. William E, Maloney, general president. International 
Union of Operating Engineers, 1003 K Street NW., Washington 1, 
B.C. 

Dear Sir and Brother: Replying to your communication of September 18 
regarding purchase of a launch in the amount of $10,000, and in compliance 
with your request that I communicate with your office regarding this expendi- 
ture, the executive board of local union 3 recommended the purchase of the 
launch and it was approved by the membership on August 2. I considered the 
purchase of the launch along the same lines that I would have considered the 
purchase of an automobile, airplane, the. property in San Francisco, Oakland, 
and Stockton. That is, an investment rather than an expenditure. 

In connection with the second paragraph of your letter, I would rather dis- 
cuss this with you personally, and I hope that it will be possible for you to 
make arrangements for such discussion while you are here on the coast. 

With best wishes and kindest regards, I am, 
Fraternally yours, 

C. F. Mathews, Recording Secretary. 

This letter, Mr. Mathews, was written some 2 months after you knew 
that the boat had cost $20,000 instead of $10,000 ? 

Mr. Mathews. That reference in that paragraph has to do with 
the letter that he wrote me. 

The Chairman. I understand, but you didn't at that time even tell 
him that the boat actually cost $20,000 instead of $10,000, did you? 

Mr. Mathews. No, I didn't at that time. I could have told him 
when he talked to me afterward. I meant to tell him that. 



7670 IMPROPEK ACnVmES IX THE L.\BOR FIELD 

The Chairman. Did you ever have the discussion referred to? 

Mr. Mathews. No. I never had any further discussion than you 
see in that letter about the boat. 

The Chairman. In other words, it has been 11 years since, and there 
has been no discussion about it? 

Mr. Mathews. That is right. 

The Chairman. And you never revealed to the international presi- 
dent the finagling that had gone on, and the discrepancy and coverup 
that had been entered into the books, the false entry with respect to 
what the boat cost ? 

Mr. Mathews. I did not. 

The Chairman. All right. 

Mr. Kennedy. I would like to ask you about another matter ; name- 
ly, the $10,000 that was used, the check that was cashed, in order to 
fight the "construction stiffs." Did you know anything about that? 

Mr. Mathews. I did. 

Mr. Kennedy. What was that for ? 

Mr. Mathews. That was for what it says. The minutes of — well, 
I don't know what date, but you have them there. I told your investi- 
gatoTs about it. 

That money was to be used to find out who the "construction stiffs" 
were. 

Mr. Kennedy. And you felt that that was a good use of the union 
money ? You approved of that ? 

Mr. Mathews. Well, the union approved of it ; yes. 

Mr. Kennedy. And you signed the check ? 

Mr. Mathews. That is right. 

Mr. Kennedy. Did you receive any money out of that ? 

Mr. Mathews. Yes, I think I did. 

Mr. Kennedy. How much did you receive ? 

Mr. Mathews. I don't know. 

Mr. Kennedy. What did you receive it for ? 

Mr. Mathews. To make trips to different parts of our territory. 

Mr. Kennedy. To do what ? 

Mr. Mathews. To talk to the members. To visit with them. To 
find out if we could find anything else about these "construction 
stiffs," who they were, who was responsible for these letters that they 
wrote. 

I think you have there a list of where I was. I think you should 
have receipts for expenditures there. 

The Chairman. Let us see what we have. 

Senator Mundt. Mr. Mathews, when you go out in the field looking 
for a "construction stiff" and find one, then what do you do? 

Mr. Mathews. Well, we cite him before the union, if we find one. 
If we can prove that he is tearing down the union, yes, we would cite 
him before the executive board. 

Senator Mundt. Would you fine him if he tries to protest against 
the policies of the union, do you mean ? 

Mr. Mathews. Yes, if he was doing anything against the union, 
which I think those letters would inspire disrespect for the officers 
and disrespect for the union. 

Senator Mtjndt. Is that considered democratic policy in your inter- 
national union, that if a man protests against union policy he is fined? 

Mr. Mathews. Not if he does it in person. 



IMPROPER ACTR'ITIES IN THE LABOR FIELD 7671 

Senator Mundt. He can't do it by letter ? 

Mr. Mathews. Well, if he has something against the union, he 
should come to the union and make his protest. 

Senator Mundt. Does the international union interpret the Bill of 
Rights to the American Coristitution to exclude free speech by letter? 

Mr. Mathews. We have lots of complaints by letters, sir. 

Senator Mundt. That is what 1 am trying to find out. When you 
find a "construction stiff,'- why should you try to fine him or penalize 
him in any way for expressing his views ? 

Mr. Mathews. There is no way to penalize him unless you bring 
him before the union. 

Senator Mundt. I know that. But why should he be penalized at 
all? If he is a union member, hasn't he a right to protest against 
union policies ? 

Mr. Mathews. I guess everyone in the United States has a right to 
protest whatever they want. 

Senator Mundt. Without being fined ? 

Mr. Mathews. Yes. 

Senator Mundt. But you say you want to find him and then fine 
him. 

Mr. Mathews. I want to bring him before the membership. 

Senator Mundt. But you want to fijie him, you want to put a 
penalty on him. 

Mr. Mathews. I didn't say I would put a penalty on him. I said 
he would be cited before the local union for trial. 

Senator Mundt. Didn't you use the word "fined" ? 

Mr. Mathews. I don't think I would ; no, sir. I said I would find 
him. 

Senator Mundt. F-i-n-d? 

Mr. Mathews. We tried to find him. 

Senator Mundt. All right. You are going to find him. Now you 
found him. Now what do you do ? 

Mr. Mathews. He would be cited before the union. 

Senator Mundt. Here he is, "Joe Bloke," American, marine, war 
veteran, doesn't like what is going on, and says so. Then you found 
him. What are you going to do to him ? 

Mr. Mathews. You can't do anything to him, unless he is guilty of 
telling falsehoods. What do you do in court? What do you do? 
"Wliat are you doing with me ? 

Senator Mundt. It is a little bit different so far as you are concerned. 

Mr. Mathews. I guess so. I must be. 

Senator Mundt. You are talking about a fellow who belongs to a 
union. In fact, he has to belong to the union to get a job in your 
outfit. 

Mr. Mathews. He doesn't have to belong to the union to get a job. 

Senator Mundt, He doesn't? You don't have a closed shop? 

Mr. Mathews. There are a lot of them working that don't belong 
in the union. 

Senator Mundt. Do you have a closed-shop contract or not? 

Mr. Mathews. Well, you are going to have to explain to me what 
a closed-shop contract is. 

Senator Mundt. I should explain that to you ? 

Mr. MLvTHEws. That is right. 

Senator Mundt. You know more about that than I do. 



7672 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. Mathews. You are asking the question. I don't know how to 
answer it. 

Senator Mundt. Let me ask you, then. On your construction 
work out in San Francisco, where local 3 operates, does a man have 
to belong to a union to work on these contracts with union members 
or not ? 

Mr. Mathews. We have people working there that do not belong 
to our union. I cannot tell you exactly what their names are, or 
where they are working. 

Senator Mundt. I am trying to find out. 

Mr. Mathews. I do know that they are working there, and I do 
know that they are joining our union every day. 

Senator Mundt. But it is purely voluntarily, you are telling me? 

Mr. Mathews. I think so. 

Senator Mundt. They don't have to join a union, but if they want 
to join it, they can. Very well, I will accept your word for that. 

Mr. Mathews. Just a moment. You are putting words in my 
mouth ; are you not ? 

Senator Mundt. No, I am not. 

Mr. Mathews. You see, we have many agreements. I think there 
are some almost 200 agreements, and some of those agreements re- 
quire, in accordance to law, and in accordance to the national labor 
relations law, which covers the hiring of new people — well, we have 
one agreement there with the AGC, I believe, and it is common prop- 
erty. You can get a copy of it anywhere. It says that employees 
within 30 days will become members of the union. That is a closed 
shop ? You said that. 

Senator Mundt. You have some closed-shop contracts ? 

Mr. Mathews. You said that. I didn't. I asked you if that is a 
closed shop. 

Senator Mundt. If I understand what you are saying, I think it is 
a closed shop. That is, a man after 30 days has to belong to a union 
or get oil the job. Is that what you told me ? 

Mr. Mathews. As required by the National Labor Relations 
Board. 

Senator Mundt. I am not complaining. I would call that a closed 
shop. We will say it is compulsory miion membership for the fellow 
who works more than 30 days. Will you agree to that 'i 

Mr. Mathews. I am sorry that I even talked to a lawyer. 

Senator Mundt. You are not talking to a lawyer. You are talking 
to a fellow from South Dakota who is not a lawyer. So we can talk 
on common ground. 

I don't want to confuse you, and I don't want you to mislead me, 
because I am not a lawyer. 

Mr. Mathews. I don't want to mislead anyone. 

Senator Mundt. We will talk about Joe Block now, who, after 30 
days, finds himself in a union which he must belong to to support 
his family. Do you agree so far ? 

Mr. Mathews. I don't like to be led, sir. 

Senator Mundt. Wliat ? ^ 

Mr. Mathews. I don't like to be led, sir. 

Senator Mundt. Led ? 

]SIr. Mathews. I have already told you. I already answered. 



IMPROPER ACTIVITIES UST THE LABOR FIELD 7673 

Senator Mundt. I am asking you a question. I am not leading. 
Is it true that a man 

Mr, Mathews. You are telling me something, and you want me 
to say "yes" or "no," do you not ? 

Senator Mundt. Certainly. 

Mr. Mathews. That is what I am afraid of. 

Senator Mundt. Well, you can take the fifth amendment. 

Mr. Mathews. I don't need any fifth amendment. 

Senator Mundt. I wouldn't think so. Why don't you answer the 
question? Is it true that some of the men working on some of the 
projects under local No. 3, after having worked for 30 days, either 
have to join the miion or get off the job? Is that right or wrong? 
Is it true or false ? I am not complaining about it. I have to find 
out the facts. 

Mr. Mathews. I don't think so. I don't think we run many people 
off the jobs because they don't join our union. I don't know of any 
case. 

Senator Mundt. Are you telling me that in the operation of your 
union, a man does not have to join the union after working 30 days? 
All I want to Imow is where we are. 

Mr. Mathews. I think there is a lot of them working. I don't 
know. I work in the office and other people work in the field. 

Senator Mundt. Give me the name of one man. Name me one 
man that you know working on a contract out there for more than 
30 days, on which you have a contract, that does not have to belong 
to your union. 

Mr. Mathews. One fellow ? 

Senator Mundt. Yes. 

Mr. Mathews. I don't work in the field, sir. I work in the office. 

Senator Mundt. You said there were many of them. 

Mr. Mathews. I think there are many of them. 

Senator Mundt. You said a while ago you do not want to think. Do 
you know. Do you know of any one man ? We will put it that way. 

Mr. Mathews. Yes ; I know of one, but I can't think of his name at 
the moment. 

Senator Mundt. You know of one ? 

Mr. Mathews. Before I get through, I will tell you his name. 

Senator Mundt. You will think of his name ? 

Mr. Mathews. Yes. 

Senator Mundt. I will reshape my question. 

Do you think it is a proper expenditure for a union to spend money 
trying to find a construction stiff, who is a member of the club, who 
protests about some of the rules of the club, or some of the regulations, 
or some of the officers ? I would think he would have that right. 

Mr. Mathews. I think the expenditure is the right expenditure to 
expend for anything that the membership votes on. 

Senator Mundt. Did tliis idea of sending out sleuths to find con- 
struction stiffs originate with the membership or with the officers ? 

Mr. Mathews. Well, the membership voted to find out who they 
were. They had a regular meeting. 

Senator Mundt. Did they initiate the action or simply vote the 
approval of the action of the officers after they had taken the action ? 

Mr. Mathews. They voted to spend money to find these people, 
and to find who was disrupting the club, as you call it. 



7674 IMPROPER ACTWITIES m THE LABOR FIELD 

Senator Mundt. And they did that before the officers had started 
spending the money ? 

Mr. Mathews. Yes ; I believe so. 

Senator Mundt. Are you sure ? 

Mr. Mathews. I am not sure of anything. 

Senator Mundt. That is an ahogether different picture, Mr. 
Mathews. If somebody gets up at a union meeting and says "Look, I 
think somebody ought to go around and find out who the construction 
stiffs are, we ought to spend money and locate them," that is one thing. 

It is quite something different if the officers come in with a big, 
jumbled-up report, at a sparsely attended union meeting, and say, 
"Please approve the expenditure of X number of thousands of dollars 
we have spent in sending out detectives to find the construction stiffs" ; 
I think you ought to replace the officers. 

Mr. Mathews. I think the motion was made by a member, not an 
an officer. 

Senator Mundt. I am trying to find out at what juncture. Was it 
after the sleuthing had begun or before ? 

Mr. Mathews. That I cannot answer. 

Senator Mundt. One of our staff members just told me that the con- 
struction stiffs lived a long way from San Francisco and could not 
very well get to a meeting to defend themselves or present their points 
of view, and the meetings of the local were held only in San Fran- 
cisco. Only the people there, and probably only a small percentage 
of the membership there, attended the meeting. There was not much 
chance for tlie people living three or four hundred miles away to regis- 
ter their complaints. 

Mr. Mathews. There were meetings held at different times all over 
the country, all over our jurisdiction. 

Senator Mundt. That is a comparatively new policy of the union, 
I am told, that you have had the policy in the past of holding the 
general membership meetings only in San Francisco. 

Mr. Mathews. Not membership meetings. We have had meetings 
at different times in the territory. 

Senator Mundt. But your general membership meetings are only 
held in San Francisco; is that correct? 

Mr. Mathews. In accordance with the bylaws, our meetings are 
held in San Francisco, the general membership meetings. 

Senator Mundt. That is the point I am making, because that is 
where tlie business is transacted ; is that correct ? 

Mr. Mathews. We have meetings outside, too. 

Senator Mundt. I am not talking about just any meetings. I am 
talking about where business is conducted, and the business is con- 
ducted at the general meetings held in San Francisco. Right or 
wrong ? 

Mr. Mathews. That is right. That part of it is right ; yes. 

Senator Mundt. That is the part I was trying to find out about. 

Senator McNamara. I would like to ask the witness a couple of ques- 
tions along the same line, Mr. Chairman. 

Mr, Mathews, you indicate from your answers that you think that 
because the membership voted to spend this money for a particular 
purpose, that they had a right to do it because it was their money. Is 
that correct? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7675 

Mr. M.\THEws. Well, they have a right to do anything they want to 
with any money that they have. 

Senator McNamara. Except illegal acts. 

Mr. Mathews. Illegal ? 

Senator McNamara. You would not say that they had a right to 
appropriate money to commit illegal acts, would you ? 

Mr. Mathews. No. 

Senator McNamara. So long as they are within the law, they have 
a right to spend their money any time they want to, anywhere they 
want to. Is that your position ? 

Mr. Mathews. That is my position. 

Senator McNamara. I must heartily agree. 

The Chairman. I understood you said that you did get some of 
the funds, some of the money, out of the "construction stiff" appro- 
priation of $10,000. 

Mr. Mathews. Yes, sir. 

The Chairman. And that you filed a report on those funds? 

Mr. Mathews. That is right. 

The Chairman. I present to you here photostatic copy of a mem- 
orandum or expense account that you apparently submitted, addressed 
to the trustees of local union No.*3. It bears different dates on it, all 
of them in 1955. I will ask you to examine the 2-page document and 
state if you identify that as a photostatic copy of the expenses that 
you reported ? 

(Document handed to witness.) 

Mr. Mathews. Yes, sir. 

The Chairman. Thank you. That may be made exhibit 63. 

(Document referred to was marked "Exhibit No. 63" for 
reference and will be found in the appendix on p. 7901-7902.) 

Mr. Mathews. Is there any more to that? Do you not have the 
receipts ? 

The Chairman. I will inquire. 

Were you able to find any receipts for these ? 

Mr. Salinger. We have not, sir. 

Mr. Kennedy. These were not even in the union files. They are 
from a different source. There were not any receipts. 

The Chairman. Did you procure receipts for these expenditures? 

Mr. Mathews. For 99 percent of them ; yes, sir. 

The Chairman. For 99 percent ? 

Mr. Mathews. Yes, sir. 

The Chairman. What did you do with the receipts ? 

Mr. Mathews. I gave them to Mr. Swanson the same time I gave 
him that copy there. 

The Chairman. At the same time you presented this to Mr. Swan- 
son, you presented him the receipts for your expenditures? 

Mr. Mathews. Yes, sir. 

The Chairman. I am advised by the staff that they were unable 40 
find the receipts in the files, among the records, of your union. 

Mr. Mathews. They found this, but they could not find the receipts, 
do you mean ? 

The Chairman. I understand they did not get this from the files. 
Is that correct? 

Mr. Salinger. That is correct. 

The Chairman. They got it from another source. 



.7676 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Mathews. You got it from Mr. Swanson, did you ? 

The Chairman. Well, anyway, it was not in the files. 

Mr. Mathews. That is who it was given to. 

The Chairman. I will confer with counsel and determine that later. 
You identify this, anyway ? 

Mr. Mathews. I identify that part of it, but there is another part 
to it. 

The Chairman. I will have the staii or whoever procured this doc- 
ument state whether any receipts were found with it. I wish to call 
your attention to some of this. 

As I understood it, you were out to try to find the men or those 
responsible for this campaign, the campaign the "construction stiffs" 
were putting on, the campaign of criticism and so forth. Is that 
correct ? 

Mr. Mathews. That is right. 

The Chairman. According to your report, on January 28, 1955, 
you were in Stockton, Calif., and spent $287.50 for dinner and enter- 
tainment. Is that correct? 

Mr. Mathews. It must be, if it is on there. 

The Chairman. In addition, you paid the hotel $45.50 for your own 
accommodations, I suppose. 

Mr. Mathews. That is right. 

The Chairman. And car repair one-hundred seventy-five dollars 
and some cents. Is that your car or the union's car ? 

Mr. Mathews. The union's car. 

The Chairman. I think that would be perfectly legitimate. Two 
days later you go down to Sacramento, Calif., January 30, 1955, and 
vou have another banquet, in the amount of $397.50, and a car rental 
of $85, hotel and meals of $58, a total of $540.50 for 1 day there. Is 
that correct ? Did you spend that much money there ? 

Mr. IVIathews. If it is there, it must be. 

The Chairman. Then on Februar}^ 12 and 13, you went to Fresno, 
Calif. You had dinner and entertainment again, $203.65, hall rent 
of $25, hotel and meals $83.50, or a total of $286— and that is an 
error — $286.65 ; $286.65 does not include this total amount. You have 
$203.65, $25, $83.50 — well, there is a discrepancy there that is an error. 
Yqu did not get all of your money back. You short-changed your- 
self on that one. 

Mr. Kennedy. It is about $311. 

The Chairman. You short-changed yourself there. You actually 
did not have the $25 that you have for hall rent. They owe you $25 
more on that one. 

Then you went out to Salt Lake City, Utah, on March 19 and 20, 
still looking, I guess, for these "Stiffs." You had a dinner and en- 
tertainment there for $520, hotel and meals of $55.75, transportation 
of $83.50, or a total of $659.05. I have not added that. You better 
recapitulate these figures. You may have some more money coining. 

Then you went to Provo, Utah. You had entertaimiient and dinner 
for $345, and hall rent— the dates for this are not here — hall rent 
of $25. That was $375. 

In Redding, Calif., you had, April 16 and 17, dinner and entertain- 
ment, parking, garage, and motor tune-up, a total of $148. Accord- 
ing to your grand total for all of it, it is $2,513.45. 

Did you find any "Stiffs" when you spent this money ? 



IMPROI>E.R ACTIVITIES IN THE LABOR FIELD 7677 

Mr. Matheavs. No; I didn't. I found some people who said they 
were, but I never did prove anything. 

The Chairman. I do not loiow much about investigating, but hav- 
ing a big banquet and feed is not very conducive to going out and 
finding out who is putting out the propaganda. I do not know, 
maybe that is a gooct way to do it. But it was not successful ; was 
it? 

Mr. Mathews. No, sir. 
The Chairman. Senator Mimdt? 

Senator Mundt. Mr. Mathews, you should be as interested as this 
committee is in getting gangsters, crooks, and robbers out of the 
union movement, that is, at least in getting them out of official union 
positions. You are the secretary and presumably one of the cus- 
todians of the membership rights, their vested interest in their funds. 

Here we have a situation where the Construction Stiff News-points 
out evidence against Swanson, evidence against Maloney, which has 
subsequently been brought to lielit. They have been doing a great 
constructive service advising fellow members of the union that they 
were being robbed. 

"Wliat happens ? You authorize, and the other officials of the union 
authorize, an expenditure of $10,000 to stop the union members from 
cleaning up their own union. Some of the union leaders of this coun- 
try say "We don't need any legislation. We will clean tliis up our- 
selves." I think some of them would like to clean it up themselves, 
but how will you clean it up from tlie inside without legislation, if 
you put $10,000 worth of so-called detectives out trying to find the 
fellows who are trying to clean it up from the inside ? 

Mr. Mathews. We are not trying to find anybody that had legiti- 
mate beefs. 

Senator Mundt. What could be more legitimate than being the first 
to publicize the corruption by Victor Swanson that you have been 
telling us about now ? 

You say, "I know he took the money. I don't have to think. I 
know it now." There were people who knew it before that that were 
trying to get him out. They had the right guy. They knew he was 
walking south with their dough. They were telling the workers 
about it. 

Is that legitimate ? Do you think it is legitimate to point out, if 
a fellow is crooked, to point that out to the people who are being 
robbed ? 

Mr. Mathews. Yes; if you loiow, if you can prove it; yes. 

Senator Mundt. The march of history has demonstrated that they 
must have known ; that they could prove it. Now you come here and 
say, "I know Swanson was getting away with the money." 

Mr. Mathews. I helped get all this information. 

Senator Mundt. Precisely. I am not criticizing you as an indi- 
vidual for what you have done since the facts came out. I am criti- 
cizing you as an official of the union and those with you, who put a 
$10,000 army in the field to stop the honest Johns from pointing out 
the crooks. 

I do not see where you are ever going to clean the union movement 
up from the inside if the dues paid by the members are used to pro- 
tect corrupt elements in the union. 



7678 IMPROPER ACTR'ITTES IN THE LABOR FIELD 

Do you think there is something wrong vs-ith that kind of expendi- 
ture of money, really, Mr. Mathews ? 

Mr. Mathews. No more than there is wrong with somebody in- 
vestigating somebody else, no more than is wrong with your com- 
mittee investigating the union ; is there ? 

Senator Mundt. I cannot see any comparison. 

Mr. Mathews. Don't this committee spend a lot of money? 

Senator Mundt. It is a lot different, it seems to me: Our com- 
mittee has never gone out in the field to try to protect the corrupt. 
We are trying to expose the corruption. 

You were spending the money to perpetuate corruption, to stop the 
people who were calling attention to the corruption. I do not see the 
analogy at all. They are as similar as black is to white, but that is 
about as similar. Maybe the similarity is on the theory that you call 
the black cat Snowball. 

That is all. 

The Chairman. Are there further questions ? 

Senator McNamara. Yes, Mr. Chairman. 

Has the witness identified what — is this his term, ''construction 
stiffs"? 

Did you interject this term ? 

Mr. Mathews. Somebody else did that. 

Senator Mundt. It is the name of the paper they put out. 

Senator McNamara. I want to ask the witness. 

Did you use the term of "construction stiffs" ? 

Mr. Mathews. No, sir. 

Senator McNamara. Where did it come from ? 

Mr. Mathews. From some testimony a couple of days ago. 

Senator McNamara. You seemed to enter into a discussion of "con- 
struction stiffs." Do you have an interpretation of what this means? 
What does it mean to you ? 

Mr. Mathews. It doesn't mean anything to me. It just means that 
there is a letter going around ever so often, taking on all of the officers, 
any of them, all of us. 

Senator McNaimar^v. When the $10,000 was voted by the union, what 
was the purpose of the money ? 

Mr. Mathews. To find out who was circulating this — they called it 
scurrilous literature, I believe. 

Senator McNamara. And it was scurrilous as it applied to the offi- 
cers of the union ? 

Mr. Mathews. It applied to the union as well as the officers. 

Senator McNamara. To the membership as well as the officers ? 

Mr. Mathews. I don't know. I don't have it with me. I have read 
it. but I paid very little attention to it. 

Senator McNamara, When you went out investigating, you were 
trying to investigate the source of the letters that were being circulated ? 

Mr. Mathews. That is right. 

Senator McNamara. Did the union construe that there were charges 
in this letter that were unfounded and untrue ? 

Mr. Mathews. Yes ; at that time. 

Senator McNamara. And that is why they advanced the money, in 
your estimation ? 

Mr. Mathews. I think so ; in my estimation, anyway. 



IMPROPER ACTTIVITIES IN THE LABOR FIELD 7679 

The Chairman. Senator, the "construction stiffs" were self-styled 
people who were sending out the literature. They designated them- 
selves "construction stiff's." That is how "construction stiffs" origi- 
nated. It was not with the committee. 

Senator McNamara. I did not charge it to the committee members. 

The Chairman. No, I understand. I was trying to give you the 
information you were seeking. 

Thank you. 

Call the next witness. 

Mr. Kennedy. Mr. Ed Doran. 

The Chairman. 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. Doran. I do. 

TESTIMONY OF ED DORAN 

The Chairman. State your name, your place of residence, and busi- 
ness or occupation. 

Mr. Doran. My name is Ed Doran. I live at 1801 West Monterey 
Avenue, Stockton, Calif. 

At the present time, I am in the air tool rental business in Stock- 
ton. 

The Chairman. Air tool rental ? 

Mr. Doran. Yes, sir. 

The Chairman. Mr. Doran, do joii waive counsel ? 

Mr. Doran. Yes, sir. 

The Chairman. How long have you been in this business, your 
present business, Mr. Doran ? 

Mr. Doran. Well, I haven't rented anything, I haven't even been 
located. I am working out of my home. I hope to get a building there. 

When this hearing is over, I am going back to Stockton to see if I 
get my building up. I have a little equipment bought. 
. The Chairman. Anyway, this is a new project ? 

Mr. Doran. This is ; yes, sir. 

The Chairman. It is a new enterprise ? 

Mr. Doran. Yes, sir. 

The Chairman. What was your former position with the union? 

Mr. Doran. Prior to June of last year, I was a business repre- 
sentative in the Stockton area. 

The Chairman. For the local No. 3 ? 

Mr. Doran. Yes, sir. 

The Chairman. How long did you work in that capacity ? 

Mr. Doran. Well, in Stockton from the latter part of April 1944, 
to July 1957. 

The Chairman. Some 13 years, 12 or 13 years ? 

Mr. Doran. Yes, sir. 

The Chairman. And when did you terminate your position with 
the union ? 

Mr. Doran. I did not terminate it, Mr. Chairman. I was terminated. 

The Chairman. When was it terminated ? 

Mr. Doran. On July 1, 1957. 

The Chairman. July 1, 1957 ? 

Mr. Doran. Yes, sir. 



7680 IMPROPER ACTIVITIES IX THE LABOR FIELD 

The Chairman. Thank you very much. 

Senator McNamara. By way of backgi-ound, may I ask a question ? 

The Chairman. Yes. 

Senator McNamara. Were you ever an operating engineer ? 

Mr. DoRAN. Yes, sir. I took this job, if you please — I was working 
on a civil-service job as a heavy-equipment operator for the United 
States Corps of Engineers on fortifications out of San Francisco, Calif. 

Senator McNamara. When ? 

Mr. Doran. I was working on fortifications. 

Senator McNamara. I understand. What year was this ? 

Mr. Doran. 1941. 

I resigned from the Corps of Engineers to take this job as a business 
representative for local No. 3. 

Senator McNamara. But you were actually an operating engineer ? 

Mr. Doran. Yes, sir; and I was the first off the civil-service list 
to go to work on fortifications in San Francisco. I had calluses on 
my hands, if you please, that were cracked. 

Senator McNamara. From what ? Pulling the levers ? 

Mr. Doran. Yes, sir. 

Mr. I^NNEDT. You have been ill, have you ? 

Mr. Doran. Yes, sir. Since April of 1956 I have been suffering 
from a heart attack. 

Incidentally, I am here against my doctor's orders. 

The Chairman. The committee will take into account your physical 
condition and be as tolerant of it as we can. 

Mr. Doran. Thank you, Mr. Chairman. 

The Chairman. Proceed. 

Mr. Kennedy. Mr. Doran, do you know Mr. Victor Swanson ? 

Mr. Doran. Yes, sir ; very well. 

Mr. Kjennedy. You worked with him in the union ? 

Mr. Doran. Yes, sir. 

Mr. Kennedy, And you know all of the other union officials who 
have testified in this hearing ? 

Mr. DoRiVN. Yes, sir. 

Mr. I^NNEDY. We have had some testimony regarding a land pur- 
chase by the Operating Enginers Union in Stockton, Calif. 

Mr. Doran. Yes, sir. 

Mr, Kennedy. And the testimony before the committee is that the 
land was purchased in 1955; that the union paid for the land some 
$33,500, when, in fact, the land only cost $29,500 ; and that the differ- 
ence of $4,000 went to you. 

Did you receive that money, that $4,000 ? 

Mr. Doran. Yes, sir. 

Mr. Kennedy. You did receive the money ? 

Mr. Doran. Yes, sir. 

Mr. Kennedy. Would you explain that to the committee? 

Mr. Doran. Yes. 

Well, should I start from the time of this transaction ? In my own 
words, I would like to do it. 

Mr. Kennedy. I think that would be fine. 

Mr. Doran. My memory is not too good. If you will bear with me, 
I will try to be as truthful as I can. 

On this particular piece of property that you have on the chart, 
1, 2, and 3, it is 6.39 acres. On the 3 and a portion of 2 there was a 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7681 

trailer court during the war, and it was a jerry-built thing. It was 
condemned by the county and by the State in, I believe it w^as, 1954, the 
latter part of 1954. 

A block north of parcel No. 3 is Monterey Avenue. That is the 
street I live on. I drive down every morning, and have for 13i^ or 
14 years, down that street and pass this parcel of land. 

I read in the paper that this parcel of land was going to be condemned 
by the State and the county because they would not comply with the 
rules of the State applying to trailer courts. I inquired around and 
found out that it would be possible to buy this place. 

I called San Francisco. Mathews and Clancy came to Stockton. We 
drove on the property. We did not stop in the street, we drove right 
up on the property. We looked the property over, talked it over, and 
I said that I thought that I could get it for $33,500. 

Then several days later there was a committee meeting. It was a 
committee of members of the American Legion post, in Stockton. 

Mr. Kennedy. Who owned the property ? 

Mr, DoRAN. Who owned the property ? 

Mr. Kennedy. They owned it themselves is what I mean. 

Mr. DoRAN. They owned it; yes, sir. They decided at this meeting 
that they would have two appraisers go out there and we would take 
between two appraisers. The 2 appraisers came wnthin $500. It was 
$29,500. 

Then I called San Francisco, and I tried to get ahold of Swanson. 
Swanson was not there, so I got ahold of the then assistant manager, 
P. E. Vandewark. I told him I could get it for $29,500. He said, 
"Well, let it go through for the $33,500." 

I went down then and put it in escrow. 

I think you have letters from Mathews saying that he should au- 
thorize me, and under certain conditions I should go down to the title 
company and be sure on this thing. It w^as a cemetery. There were 
4,000 graves. It was a pauper's graveyard for the State hospital 
many, many years ago. I Avant you to understand that. 

Senator Mundt. Which was the paupers' field? 

Mr. DoRAN. It was behind it, east of 1, 2, or 3, on that map. We 
will say that the bottom side is California Street and the top side is 
east. There were 4,000 graves orv-er a distance of 190 feet depth, 
clear across that. 

When we bought the property, it was in the county of San Joaquin, 
and zoned residential. At the time it could not be zoned in any other 
way, so it was up to me. 

I was instructed to go out and try to get this thing rezoned so that 
we could put a building on that property. Then a real-estate man 
came along. I didn't go hustling the land sale. 

Mr. Kennedy. Have you finished telling about the $35,000? 

Mr. DoRAN. I think so. 

Mr. Kennedy. I want to ask a question. 

You say that Vandewark Avas the one that had the idea of letting it 
go through with the $33,500 ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. That was not your idea ? 

Mr. DoRAN. No, sir. 

21243— 58— pt. 19 12 



7682 IMPROPER AcrrviTiES in the labor field 

Mr. Kennedy. lYlio made the arrangements that the American 
Legion post would sell it to a dummy and then the Operating En- 
gineers would buy it from the dummy ? 

Mr. DoRAN. I did, sir. 

Mr. Ivj:nnedy. You made those arrangements ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. The fellow was who ? 

Mr. DoRAN. A fellow by the name of Ray Stivers. 

Mr. Kennedy. He was a friend of yours ? 

Mr. DoRAN. He was a neighbor of mine, a next-door neighbor. 

Mr. Kennedy. And you arranged for the American Legion to sell 
it to him for $29,500? 

Mr. DoRAN. That is true. 

Mr. Kennedy. And on the same day, the Operating Engineers 
bought from this dummy the same piece of property for $33,500 ? 

Mr. DoRAN. Yes. 

Mr. Ivennedy. And the diiference between the $29,500 and $33,500 
went in a check to you, the $4,000 ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. Here is the check. Did you receive that check ? 

Mr. DoRAN. Yes. 

The Chairman. This check is exhibit No. 4 in the record. It is 
dated March 21, 1955, in the amount of $4,000, Would you examine 
that exhibit and state if that is a photostatic copy of the check to 
which you referred? 

(The document handed to the witness.) 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. What did you do with the $4,000 ? 

Mr. DoRAN. The first thing that I did after receiving that $4,000 
was go to the internal-revenue people in Stockton. That is their 
office there in Stockton, on Eldorado Street. I talked to the people 
at the counter. They have a counter there to help people with income 
tax, and I told them about this check. They asked me how much 
I had invested, and I told them not one 10-cent piece. They told me 
how much income I owed on that, which was $831, if my memory 
berves me correctly. Then I took it to the accountant and he made 
out the form and I sent it in to the internal-revenue people. 

Mr. Kennedy. For $831 ? 

Mr. DoRAN. I believe it was $831. 

Mr. Kennedy. What did you do with the rest of the $4,000? 

Mr. DoRAN. The accountant told me how much I would owe for 
the State income tax. I held that out and I took that to San Fran- 
cisco and gave it to Vandewark. 

Mr. Kennedy. You gave the rest of the money to Vandewark? 

Mr. DoRAN. Yes, sir, 

Mr. Kennedy. You didn't keep any of that money ? 

Mr. DoRAN. No, sir. 

Mr. Kennedy, You didn't keep any of that money yourself? 

Mr. DoRAN. No, sir. 

Mr. Kennedy, Did you get any of that later? 

Mr, DoRAN. Yes, sir. Later on I got $500. 

The Ch^mrman. Was that in cash ? 

Mr. DoRAN. Yes, sir. 



IMPROIPBR ACTIVITTES IN THE LABOR FIELD 7683 

Mr. Kennedy. So you paid the taxes of some $800 on this and then 
vou got $500 that you kept for yourself ? 

Mr. DoRAN. That is right. 

Mr. Kennedy. All the rest of the money \Yent to Vandewark? 

Mr. DoRAN. That is right. 

Mr. Kennedy. Was anyone present when you gave the money to 
Vandewark ? 

Mr. DoRAN. This was in Vic Swanson's office. From Vandewark's 
office you have to go across a bridge to get into Swanson's office. I 
was in there and then Vic came in. I had just handed him the en- 
velope when Swanson walked in. I told Swanson that Vandewark 
liad gotten the money. 

Mr. Kennedy. So the three of you were present at the time? 

Mr. DoRAN. Tliat is right. 

Mr. IvENNEDY. And all three of you were aware of this deal, Swan- 
son being aware of it as well as you and Vandewark? 

Mr. DoRAN. I believe so. 

Mr. Kennedy. Well, you told him, you said. 

Mr. DoRAN. Yes. 

Mr. Kennedy. Was Mathews aware of it ? Had you discussed this 
with Mathews? 

Mr. DoRAN. I didn't talk to Mathews about this at all. 

Mr. KJENNEDY. So he was not aware of it ? 

Mr. DoRAN. No. 

Mr. Kennedy. So tlien you went back to Stockton ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. Now start telling us about what happened after 
that. 

Senator McNamara. Before you leave that, I have a question. 

From tlie colloquy you just had with the chief counsel, it appears 
that this $33,500 originated with Vandewark, but, as a matter of 
fact, you suggested this was a price that the property could be pur- 
chased at, is that not so ? 

Mr. DoRAN. Yes. 

Senator McNamara. Then this $33,500 figure was your figure, not 
Vandewark's figure ? 

Mr. DoRAN. No. It was information that I had gathered from 
members of the Karl Ross Post committee. 

Senator McNa^niara. But you brought this figure to the union. You 
said you thought the property x?ould be purchased for that? 

Mr. DoRAN. Yes. 

Senator McNamara. As far as this problem is concerned here, you 
originated it? 

Mr. DoRAN. Yes, that is right. 

Senator McNamara. All right. 

Mr. Kennedy. Now tell us about wliat happened to tlie various 
parcels of land. 

Mr. DoRAN. Then a real-estate man came along and said "Here, 
do you want to sell this parcel No. 3 ?" 

Mr. Kennedy. Wait a minute. 

Mr. DoRAN. I am trying to tell you how it liappened. He wanted 
parcel 3. Parcel 1 had a big slough through it, and on this side of 
No. 1 was a hole in the ground that it took a contractor about 2 weeks 
to fill up with dirt. 



7684 IMPROPER ACTIVITIES IX THE LABOR FIELD 

I said "Well, if you want this property," they only wanted half 
of the property, "you will have to take between tliis street and the 
center of this street, and take it all.'' 

They suggested the price. They suggested a price. Whether I 
called San Francisco to find out whether it would be for sale or not, 
I don't know, or whether this real-estate man did. 

Mr, I^NNEDY. That is parcel No. 1, is that right ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. And they offered $20,000 for it ? 

Mr. DoRAN. $20,000. 

Mr. Kennedy. Actually, the union sold the property for $8,500 ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. And Mr. Doran received the difference? 

Mr. Doran. Yes, sir. 

Mr. Kennedy. Tell us how that was worked out. 

Mr. Doran. Well, the difference was 

Mr. I^NNEDY. When did you decide that you were going to handle 
it this way in order to make this money personally ? 

Mr. Doran. Well, it was shortly after the real-estate man came in 
there and suggested that his client would offer $20,000 for this thing. 

Mr. Kennedy. Then who did you arrange with in the union to 
sell it for $8,500? 

Mr. Doran. I talked to Vic Swanson, and he said that he would 
talk to the officers and that he would let me know. 

In a couple of days, I think by phone 

Mr. Kennedy. So it was decided between you and Swanson to sell 
it for $8,500? 

Mr. Doran. I think the other officers of the union, too. 

Mr. Kennedy. But as far as you know, it was just you and Swan- 
son? 

Mr. Doran. That is right. 

Mr. KJENNEDY. So you sold it. The property was then sold to the 
same dummy. Stivers, for $8,500 ? 

Mr. Doran. That is right. 

Mr. Kennedy. And on the same day, Stivers resold the property 
for $20,000, and you received the difference between the $8,500 and 
the $20,000, plus costs. 

Mr. Doran. Well, we are about 6 months ahead of ourselves on 
this, Mr. Kennedy. That is how it worked out, though. 

Mr. Kennedy. That is what we are interested in. You got a check 
for $9,884.76, dated January 3, 1956 ? 

Mr. Doran. That is right. 

Mr. Kennedy. That shows your endorsement on the back ? 

Mr. Doran. That is right. 

Mr. Kennedy. What did you do with that money ? 

Mr. Doran. That check I cashed. I went to the internal revenue 
people. 

Mr. KJENNEDY. Again? 

Mr. Doran. Again. They told me that I owed $1,850 on the same 
kind of a proposition as this other. I paid the income tax on it and 
took the money down and gave it to Victor Swanson. 

Mr. Kennedy. That was about $7,000 that was left ? 

Mr. Doran. I wouldn't know. I never took the trouble to figure it 
out. 



IMPRO'FE'R ACTIVITIES UST THE LABOR FIELD 7685 

Mr. Kennedy. Well, it was $9,800 less $1,800, so it is approximately 
$8,000. Did you turn that over to Victor Swanson? 

Mr. DoRAN. Yes. 

Mr. Kennedy. Did you get any money out of that ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. How much money did you receive ? 

Mr. DoRAN. $800. 

Mr. Kennedy. How much? 

Mr. DoRAN. $800. 

Mr. Kennedy. He gave you $800 back ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. You only got $800 out of that whole transaction? 

Mr. DoRAN. Yes. 

Mr. Kennedy. Did you demand more than that ? 

Mr. DoRAN. No. I am a peaceful citizen. I am just going along 
with this thing. 

Senator Mundt. In the first transaction, you told us in addition 
to taking some of the cash to the internal revenue fellow, and paying 
him off, you also took some money up to San Francisco to pay a 
State of California income tax, I think you said. 

Mr. DoRAN. No, I didn't say that. I said I held out that much. 
You don't owe the State taxes there until a certain time. 

Senator Mundt. You didn't say anything about the State income 
tax on the second transaction. I wondered what happened to that. 

Mr. DoRAN. It was paid. 

Senator Mundt. Out of the union funds? I am not questioning 
that it was paid, but you did not follow the same procedure that you 
followed the first time. The first time, as I understand it, you with- 
held from the money that you gave to the union enough to pay the 
State income tax. 

Mr. DoRAN. It might have been that I did. You will find that the 
taxes were paid. Whether I did or didn't, I can't recall. 

Senator Mundt. Was it paid on the $12,000 or on the $800 ? 

Mr. DoRAN. I paid it on the total amount, nine-thousand-nine-hun- 
dred-and-some dollars. 

Senator Mundt. You paid it on the $9,000 ? 

Mr. DoRAN. Yes. 

Senator Mundt. Presumably, then, I suppose, it was before you 
took the money to Swanson ? 

Mr. DoRAN. Certainly. I held it out. 

Mr. Kennedy. You made $800 on that and $500 on the original deal. 
Wliat about parcel No. 2 ? 

Mr. DoRAN. On parcel No. 2, another real-estate man came along. 
Jack Kane. He is a broker in Stockton. He came along and offered 
$100 a front foot for that property, which amounts to $24,900, if my 
figures are right. 

Again I called the San Francisco office, and again they told me to 
sell it under the same conditions. I am talking about Vic Swanson, 
now. He told me to sell it under the same conditions. 

Mr. Kennedy. How did you decide at what price you would sell 
that property ? How did you decide what profit you wanted to make 
on it? 

Mr. DoRAN. Well, they wanted to sell it for more than they bought 
it for. They wanted to make a profit on it. 



7686 IMPROPER ACTTV'ITIES IN THE K\BOR FIELD 

Mr. Kennedy. So that the union would appear to be making a 
profit ? 

Mr. DoRAN. That is true. ^ 

Mr. ICJENNEDY. You set up the dummy again, the same way as you 
did before ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. And the union sold it to the dummy for $10,858, and 
on the same day, the dummy sold it for $24,000, and after various costs,, 
you, Mr. Doran, received $12,071 on that second deal ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. What did you do with that $12,071, which you re- 
ceived on July 11, 1955, in a check ? 

Mr. Doran. Again I took it to the internal revenue people and asked 
them what I owed on that transaction. Then I took the check in 
and 

Mr. Kennedy. How much was owed on that ? 

Mr. DoRAN. $3,950. Then I took the check in and gave it to Victor 
Swanson. 

Mr. Kennedy. What? The difference ? 

Mr. Doran. No, just the whole check. I gave him the whole check. 

Mr. Kennedy. How much money did he give you back? The en- 
doresements on the back show it to be endorsed by Ed Doran and Vic- 
tor Swanson. 

Mr. Doran. Yes, but he didn't give me any money at that time. If 
you want me to proceed, I will try to get this straightened out as best I 
can. I gave him the check, and then a day or two later I received a 
check for $3,950. 

It was a cashier's check. 

Mr. Kennedy. That was to pay the tax ? 

Mr. Doran. Yes. I took it to my account and then I sent it to the 
internal revenue people. 

The Chairman. I present you what purports to be a photostatic copy 
of the check for $3,950, to which you just referred. Will you please 
examine it and identify it ? 

( The document was handed to the witness.) 

Mr. Doran. Yes. That is possibly it. My signature is on there 
and so are the internal revenue people. 

The Chairman. That check will be made exhibit 64. 

(The document referred to was marked "Exhibit No. 64" for ref- 
erence and will be found in the appendix on p. 7903.) 

Mr. Kjennedy. Did you receive any other money other than this 
check ? 

Mr. Doran. Yes. Possibly a week or 10 days later I was in San 
Francisco, and I received either $1,200 or $1,250. I am not sure. 

Mr. Kennedy. In cash? 

Mr. Doran. Yes. 

Mr. Kennedy. From whom did you receive that ? 

Mr. Doran. Vic Swanson. 

Mr. Kennedy. So he got the check for the $12,000 and he gave you 
the $3,900 to pay the taxes, plus $1,200 in cash at a later time ? 

Mr. Doran. That is right. 

Mr. Kennedy. Do you know what he did with the rest of the 
money ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7687 

Mr. DoRAN. I understand that he divided it up among the officers 
of the union. I have no proof of that. 

Mr. Kennedy. That is what he said ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. Mr. Chairman, we traced that check down to some 
extent. Mr. Salinger can testify on that second parcel, No. 2, as 
to what h'appened with the money. I think it would be helpful. 

The Chairman. Come forward, Mr. Salinger. 

TESTIMONY OF PIERRE S. SALINGER— Resumed 

Mr. Kennedy. Mr. Salinger, you traced the check of $12,071, which 
was indorsed by Mr. Doran and then by Victor Swanson, have you 
not. 

Mr. Salinger. Yes. 

Mr. Kennedy. Would you tell the committee how that check was 
used ? What was purchased with that check ? 

Mr. Salinger. The check was taken to the Mission savings office 
of the American Trust Co. in San Francisco, where it went for the 
purchase of three cashier's checks, plus a delivery of cash in the 
amount of $1,600. 

Copies of the purchase orders for these cashier's checks show they 
were purchased by V. S. Swanson. The first, which has been made 
an exhibit here, exhibit 17, is payable to the order of Pat Clancy, 
president of local 3, in the amount of $800. The second one, which 
has been made committee exhibit 84, was made payable to the order 
of Ed Doran, and shows to have been endorsed to the district director 
of internal revenue, by Mr. Doran. 

The third check in the amount of $5,721 was made payable to the 
order of V. S. Swanson. It shows to have been cashed by V. S. 
Swanson. As I say, the remaining $1,600 was given in cash to who- 
ever took the check in. 

Mr. Kennedy. But it shows that out of that sum of money, Mr. 
Pat Clancy received a cashier's check for $800 ; is that right ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. And the $3,900 that this witness testified to went 
to the Internal Revenue Service to pay the taxes on the $12,000? 

Mr. Salinger. The check he referred to came out of the $12,071. 

Mr. Kennedy. And Mr. Swanson got another check for how much? 

Mr. Salinger. $5,721. 

Mr. Kennedy. Which he ultimately cashed ? 

Mr. Salinger. Yes. 

Mr. Kennedy. As well as $1,600 in cash ? 

Mr. Salinger. As well as $1,600 in cash ; that is right. 

The Chairman. That check has not been made an exhibit ? 

Mr. Salinger. The check and the three purchase orders have not 
been made exhibits. 

The Chairman. The purchase orders may be made exliibits 65, 65A, 
and 65B, the check will be made exhibit 66. 

(The documents referred to were marked "Exhibits Nos. 65 and 66" 
and will be found in the appendix on p. 7904-7907.) 



7688 IMPROPEfR ACTIVITIES IN THE LABOR FIELD 

TESTIMONY OF ED DORAN— Resumed 

Senator McNamara. On the basis of the information just presented 
to the committee, would you assume the $800 paid to Mr. Clancy was 
for his share of this cutup ? 

Mr. Dor AN. I think it would be. That is just my opinion, though. 

The Chairman. That was the whole purpose of it — to divide it up, 
wasn't it? 

Mr. DoRAN. I think so. 

The Chairman. That was your understanding? 

Mr. DoRAN. That is right. 

The Chairman. Proceed. 

Mr. Kennedy. Now we go to parcel No. 3. Would you tell us what 
happened to parcel No. 3? 

Mr. DoRAN. Parcel No. 3 — could I get this thing so I can tell you why 
parcel No. 3 was for sale? 

Just a few days before this other was put into escrow, they bought 
another piece of property in Stockton, called the Kenworthy prop- 
erty, that amounted to 3.96 acres. They bought that to put a building 
on. Then the officers — and I say Vandewark and possibly INIathews, 
though I am not saying for sure — I believe they asked me to peddle 
this other piece of property ; to get rid of it. How much they wanted 
for it was a little more than they paid for it. Then I put the thing in 
escrow, and 1 was going to buy it myself. I was going to buy that 
piece of property myself, but I could not raise the money. I called 
Vic Swanson on the phone. I said, "Vic, do you want to go in with 
this?" And he said, "Sure." 

We went in and bought this property. I took it down to the Stock- 
ton Abstract & Title Co. I put up the money and it went through 
escrow. The union got their money, I got the deed to the place, and 
it laid that way for many months. 

After I acquired it, and even before I acquired this place, I was 
going to develop that into a trailer court. It had been a trailer 
court before, and there was no building there. 

After we bought tlie place, they had started building. I had the 
thing engineered, I had architects work on it, I had perspective draw- 
ingsworked on it, had the city engineer give me estimates on water- 
lines, I had the engineers go out and tell me how big the lines were 
that they wanted. Then I went to the convention in Chicago, and 
on the way home I had a heart attack and stayed in the hospital in 
Reno for a month. When I got home, I got pneumonia on top of that 
and went to the hospital for another week. Then I laid around home 
for almost a year. 

In the meantime, I was working — part of the time I was going 
to work. If you could have seen the trap that we had to do business 
in there, there were six people working in a place about as big as that 
desk that you have there, and it was always the idea that we would 
get a new building there, even if it was just for the engineers. We 
owned the Labor Temple in Stockton. So Mathews and Swanson 
and Marshall Swanson came to Stockton to find out about remodeling 
the old building to give us a decent place to do business in. 

After looking the ]>lace over for several hours, they decided that it 
would cost around $300,000 to repair and remodel this old building. 
So they went over to this Kenworthy property. They stood around 



IMPROPE'R ACTIVITIES IN THE LABOR FIELD 7689 

there for maybe a half hour, and they decided then that that wasn't the 
place for the building. Then one of them, I don't laiow who it was, 
says, "Well, can we get that other property back again ?" 

I said, "Well, that is possible. We will go over there." 

We went to the other property, and we stood there. Mathews had 
been on the property before. If he didn't know he should have known 
that it was the same property that I owned. I have the deed in my 
pocket he signed, tlie orig-inal deed. There was the United States 
Construction Co. that had made an offer of $35,000 for that piece of 
property. There was a fellow named Clarence Kent and he made an 
offer of $100 a square foot, or $31,200. I had both of those offers at 
the same time. 

I said to Mathews at the time, "You can get this place for $35,000.'* 

He says, "We will let you know." 

About 5 days later I got a phone call and they said, "Put it in es- 
crow." I put it in escrow and got Stivers to do the business. 

If you want to know why I wanted Stivers — and he is going to 
resent you calling him a dummy, too — I can explain why I had him 
do this business, if you want to know why. 

Mr, Kennedy. I would like to know why. 

Mr. DoRAN. When I first moved to Stockton, I built a boat. I made 
it myself. 

The Chairman. That is not the one the union bought ? 

Mr. DoRAN. No, sir. I know nothing about the boat. 

The Chairman, I did not want to get confused. 

Mr, DoRAN. I had no garage in my house, and it was during the 
war. So I put an ad in the paper : "Boat for sale," A fellow called 
me up and he said, "Say, I got a lot, I will trade it even up for your 
boat," 

Mr, Kennedy, I do not think we have to go through the whole story 
of your relationship with Mr, Stivers, 

Mr. DoRAN. Mr. Stivers had nothing to do with this, Mr. Counsel. 

Mr, Kennedy, I understand that, but all we are trying to find out is, 
for instance, on this last transaction, if there was nothing to hide, why 
did you put it through a dummy again ? "Why didn't you sell it out- 
right? 

Mr. DoRAN. That is a question I cannot answer. He has handled 
every transaction. 

Mr. Kennedy. But what you did on this transaction was to deed the 
property once again to Stivers on one day, and on the same day he 
sold it to the union for $35,000. If there wasn't anything peculiar or 
unusual about this transaction, why didn't you just sell the property 
to the union for $35,000? 

Mr, DoRAN. That is a question I am unable to answer, Mr. Counsel. 

Mr, Kennedy. It has all the appearances, as well as all the other 
transactions in which you were involved, the appearances and charac- 
teristics of somebody trying to hide the transaction. 

Mr. DoRAN. I surely wasn't trying to hide anything. 

Mr. Kennedy. You were trying to hide parcels 1 and 2 in the original 
transaction, or you wouldn't have gone through the dummy. You 
couldn't have gotten your $12,000 out on one occasion and your $9,000 
on the other occasion if you had not gone through the dummy. 

Mr. DoRAN. That is true. But I probably got in the habit of going 
through the dummy and this thing came the same way. 



.7690 EVIPROPEK ACTIVmE'S IN THE LABOR FIELD 

Mr. Kennedy. You couldn't have gotten your $4,000 out originally 
if you had not gone through the dunimy. 

j\Ir. DoRAN. That is right. 

Mr. Kennedy. When you do it the fourth time, certainly we must 
reach the conclusion that you were trying to hide that transaction 
also. 

Mr. DoRAN. I never tried to hide that transaction. 

Mr. Kennedy. You only tried to hide the first three ? 

Mr. DoRAN. Yes, sir. 

Mr, Kennedy. And you had gotten in the habit and hid the fourth, 
too. 

Mr. DoRAN. My neighbor was a real-estate man and I wanted him 
to have the business. 

Senator Mundt. What did Stivers get out of the last transaction? 

Mr.DoRAN. $1,000 ; his fee. 

Senator Mundt. He hadn't actually entered into the transaction at 
all, as I understand it, but was standing out there on the lot and 
Mathews said ''We might want to buy it," and you said, "Well, I 
will sell it to you for $35,000" ? 

Mr. DoRAN. No, this was later that we talked to him, 4, 5, or 6 
days. 

Senator Mundt. That you talked to who ? 

Mr. DoRAN. Stivers. 

Senator Mundt. How did he get into the picture? You said you 
called him and asked liim to put it in escrow ? 

Mr. DoRAN. I asked him to do that. 

Senator Mundt. Why should he get $1,000 ? 

Mr. DoRAN. That is a question I am not going to attempt to answer. 
I was under the impression that a real-estate broker is necessary m 
all real-estate transactions. 

Senator ISIundt. Really what he got was $1,000 for the use of his 
name as a temporary owner of the property; is that right? 

Mr. DoRAN. That is right. 

Senator Mundt. He didn't help negotiate the deal. The deal could 
have been made without him ? 

Mr. DoRAN. He did all the pax>erwork through the title company. 

Senator Mundt. He did the paperwork. He also used the Stockton 
Title Co. for that? 

Mr. DoRAN. Yes. 

Senator Mundt. How much did they get ? 

Mr. DoRAN. I don't know. I don't have those records. It was not 
to much ? 

Senator Mundt. Did you pay them ? 

Mr. DoRAN. I paid them on my transaction, yes, $138, I believe, 
and that included all the work that they did, including title insurance, 
which is a set fee, I believe. 

Senator Mundt. You just as well could have handled the whole 
thing through the Stoclcton Title Co., couldn't you ? 

Mr. DoRAN. I have learned since then that you don't have a real- 
estate broker. You just go in to the title company and they do all 
the work for you. 

Senator Mundt. You didn't know that? 

Mr. DoRAN. I didn't know that, no. 



IMPROPE.R ACnVITIES EST THE LABOR FIELD 7691 

Senator McNamara. I understand from your testimony that dur- 
ing this period that you had the heart attack and then had pneumonia, 
that you held the title to parcel No. 3 ? 

Mr. DoRAN. Yes, I believe so. We bought the property in Febru- 
ary, I believe, of 1956, and I had the heart attack on April 24, 1956. 

Senator McNamara. You say "We bought the property" Who 
is "we"? 

Mr. DoKAN. Vic Swanson and myself. 

Senator McNamara. You bought it from who? 

Mr. DoRAN. The Operating Engineers Union. 

Senator McNamara. The Union sold it to you ? 

Mr. DoRAN. Yes. 

Senator McNamara. And you held the title during this period of 
time? 

Mr. DoRAN. Yes. 

Senator McNamara. You bought it with the idea of putting in a 
trailer court ? 

Mr. DoRAN. Yes, sir. 

Senator McNamara. Then subsequently the United States Con- 
struction Co. — Is that the outfit? 

Mr. DoRAN. United States Construction Co. 

Senator McNamara. They were what, private home developers? 

Mr. DoRAN. No. I believe he was a hospital developer, and he 
dealt in office buildings and things like that. I think they are out 
of Denver. I am not sure. 

Senator McNamara. Did they make you an offer of $35,000 for 
this property ? 

Mr. Doran. Yes, sir. 

Senator McNamara. Can you show evidence that they made such 
•offer? 

Mr. DoRAN. Yes. I think the conunittee has the offer that they 
received through some source, I have the original letter. 

Senator McNamara. I am advised that the committee has evidence 
that the United States Construction Co. offered $35,000 for the prop- 
erty. Then in view of that, when the committee asked you the ques- 
tion of why did you sell it to the union, why didn't you sell it to the 
United States Construction Co. ? It M-as the same figure, wasn't it ? 

Mr. DoRAN. If the union had decided not to take that, they would 
have gotten it, and there would have been a big hospital on it. Now 
they put a little hospital next door at parcel 2 on your chart. There 
is a hospital there. If they had acquired parcel 3, there would have 
been a large hospital. 

Senator McNamara. That is all. 

Senator Mundt. Wliat happened to the property in that short a time 
to increase its value about 100 percent ? 

Mr. DoRAN. That thing there, when we got it — remember, it was 
a cemetery, and it was a weed patch. It was in the county. It was a 
hog district where they raised hogs. That is what they told me at 
the planning commission, that I could raise hogs out there, if we 
acquired that land. 

Senator Mundt. What happened to the land tliat increased its 
value ? 

Mr. DoRAN. We went to the planning commission, and we applied 
for rezoning on the thing. We got the thing rezoned into a C-2^ 



7692 IMPROPER ACTIVITIES IN THE Ll\BOR FIELD 

district. Then we had it annexed to the city of Stockton. There were 
many things! I spent many, many nights on that property. 

Senator Mundt. "VVlien yon are nsing the proper noun "we," you 
are talking about the union '? 

Mr. DoRAN. I am talking about the attorney and myself. 

Senator Mundt. Representing the union ? 

Mr. DoRx\N. Yes. 

Senator Mundt. Wliile the union went through a transformation of 
the zoning area, it was a cemetery, wasn't it? Did you remove the 
graves ? 

Mr, DoRAN. They did not remove the graves until 1956, the last 
part. They had to have enabling laws in the State of California. 

Senator Mundt. Who removed the graves ? 

Mr. DoRAN. The Carl Ross Post moved them, and they made a 
common grave in the corner. They took a trenching machine out 
there, and they dug these graves up. They had people catching the 
bones. Then they took them back of parcel No. 1 and buried them in 
a common grave and put a fence around it. There those bones are 
today. 

The Chairman. Wliat difference does it make in principle if the 
tract of land that belonged to the union was a beautiful park site, the 
top of a high mountain, or a hog wallow, what difference in principle 
does it make if it belonged to the union and was bought by union funds, 
for union officers to speculate on it to their own profit to the disadvan- 
tage of the union members who own it? "V^Hiat is the difference in 
principle ? 

Mr. DoRAN. There is no difference in principle, but I am not a union 
officer, Mr. Chairman. 

The Chairman. You Avere at that time, weren't you ? 

Mr. DoRAN. No. 

The Chairman. Well, you were in with the union officers and con- 
spired with them. 

Mr. DoRAN. I was following instructions, Mr. Chairman. That is 
all I was doing. 

Mr. Kennedy, Mr, Doran, you were doing a little bit more than 
that, 

Mr, DoRAN, Oh, sure, 

Mr. Kennedy. If you were not an official officer, you had a semi- 
official position. You were a business agent. 

Mr. DoRAN. I was a member of the executive board, too. 

Mr. Kennedy. You had a position of some.authority. 

Mr. DoRAN. That is true. 

Mr. Kennedy. As I understand it, on plot No. 2 — how much was 
that actually sold for per square foot or a front foot? 

Mr. DoRAN. $100. 

Mr. Kennedy. How much did you buy plot No. 3 from the union 
for? 

Mr. DoRAN. $42. 

Mr. Kennedy. The property might have been worth $35,000 when 
you ultimately sold it back to the union, but certainly it was worth 
far more than $15,000 when you bought it from the union. 

Mr. DoRAN. That is true. I didn't sell the property. I only bought 
it. 



IMPROPER ACTIVrTIES EN" THE K\BOR FIELD 7693 

Mr. Kennedy. You bought the property, and you bought it with 
Mr. Victor Swanson, and you both were officials of the union. 

Mr. DoRAN. Yes. 

Senator Mundt. You bought, but you bought from yourselves; is 
that right ? There is no question but what you bought, but you really 
bought it from yourselves if you were on the executive committee and 
passed on the motion yourselves. 

I think the counsel makes a good point. If you were offered $35,000 
from the outside, there is no reason why you should have sold it to 
the union for $35,000 ; that would certainly sound like an arm's length 
transaction, but on the original sale, you sold it to yourselves, and 
you sold it to yourselves at a kind of bargain price ; did you not ? 

Mr. DoRAN. That is true. I am not denying the fact. I am not 
denying the fact that if I had it to do over again, the union would not 
have bought that property. I don't enjoy being here. The union 
would not have bought it back from me, I can tell you that for sure. 

Senator Mundt. I do not think it improper practice, if you can 
call it that, was to sell it back to the union. I don't think it makes 
any difference who you sold it to, if $35,000 as established in the 
records, was a fair price. But as the counsel points out, the improper 
practice w^as for you fellows to sell it to yourselves at about 50 per- 
cent per front foot of what the adjacent property had been sold for. 

Do you agree ? 

Mr. DoRAN. Yes, I agree. 

The Chairman. I do not believe we can get through with this 
witness before lunch, unless we have a very late lunch. 

The committee will stand in recess until 2 : 30. 

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

atternoon session 

The Chairman. The committee will be in order. 
(Members of the select committee present at time of reconvening: 
Senators McClelland, Gold water, and Curtis.) 
The Chairman. We will proceed. 

TESTIMONY OF ED DORAN— Resumed 

Mr. Kennedy. I think you have gone through all of the facts as 
related to the property in Stockton, have you, Mr. Doran ? 

Mr. DoRAN. I believe so. 

Mr. Kennedy. Have you been involved in any other similar trans- 
actions such as this where you made some money on the side in deals 
with the union ? 

Mr. DoRAN. No ; I could have been, but I was fired probably before 
this thing got too far into the making. 

Mr. Kennedy. Was there another land deal that was contemplated ? 

Mr. DoRAN. Yes. 

Mr. Kennedy. Similar to the Stockton one ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. Where was that piece of land ? 

Mr. DoRAN. In Stockton. 

Mr. Kennedy. What is that called ? 



7694 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. DoRAN. Kenworthy property. 

Mr. Kennedy. Would you tell us what you contemplated doing 
in regard to the Kenworthy property ? 

Mr. DoRAN. Well, if I may, I can start to tell you how the thing 
started. A real-estate agent called me and told me that an outdoor 
theater chain wanted to buy that property, and they were willing 
to pay $400 a month for 10 years, I believe, and at the end of 10 
years they would Iiave an option to buy for $40,000. 

Now, on this property, I took that proposition in to San Francisco 
and I talked it over with the officials of the union. There was noth- 
ing done about it at the time, and later I had a conversation with 
Porter Vandewark regarding this property. He asked me if it would 
be possible for the officers and myself to purchase this property for the 
amount of money that the union had paid for it. That was all that 
was said about that at that time. 

Then later on at the cabin, you know about the cabin in Alverez 
County, I have 1 up there about 2 doors from that cabin down the 
stream from the 1 that the union owns, and Vandewark and his 
family were there on their vacation. 

I met Vandewark there at the cabin, on the steps of the union 
cabin. He told me at the time that there must be an easier way to 
acquire that property, because Mathews nor Clancy could raise that 
amount of money, and that it may be possible that we could on paper 
buy the thing from the union and then sell the property and then 
repay the union. 

Mr. Kennedy. Who suggested this to you ? 

Mr. DoRAN. Vandewark. 

Mr. Kennedy. Was anyone else present ? 

Mr. Doran. No. 

Mr. Kennedy. So you were going to sell the property or set up a 
corporation ? 

Mr. DoRAN. I don't know whether you would call it a corporation,. 
Mr. Counsel. 

Mr. Kennedy. It was an intermediary ? 

Mr. Doran. Yes ; and we were all going to put in a certain amount 
of money and buy the property, and then resell it. 

jNIr. Kennedy. You were going to buy it for how much ? 

Mr. DoRAN. $30,000. That is what they paid for it and I assume 
that that is probably the price. 

Mr. Kennedy. And sell it for what ? 

Mr. DoRAN. I never did figure this out. The $400 a month for 
10 years, that is quite a sum of money, and then at the end of 10 
years we would have a cash value of $40,000 more. 

Mr. Kennedy. So you expected to make a profit through this 
intermediary ? 

Mr. Doran. Yes, sir. 

Mr. Kennedy. And just as has been done in the Stockton property ? 

Mr, Doran. That is right. 

Mr. Kennedy. And why didn't that go through ? ^Vliy didn't you 
go ahead and do that ? 

Mr. Doran. Well, Mathews called me on the phone one day and he 
told me to come to Stockton, and I believe it was in February of 1957. 
He called me and he said "Wait there in Stockton," that he wanted to- 



IMPROPER ACTIVITIES EN THE LABOR FIELD 7695' 

He met me out in front of the new Labor Temple, that was under 
construction at the time. He said that the McClelhin committee 
are going to investigate this whole transaction, and forget about the 
whole thing, and he got in his car and away he went, and that was the 
last that I ever heard of that deal. 

Mr. IvENNEDY. So it never went through ? 

Mr. DoRAN. That is right. 

Mr. Kennedy. You contemplated doing the same thing and making 
the same kind of killing that you made in the Stockton transaction but 
it never went through ? 

Mr, DoRAN. That is true. 

Mr. Kennedy. You recognize, do you, Mr. Doran, that you acted 
improperly in the Stockton land deal ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. And you recognize that your testimony here regard- 
ing the involvement of several other union officials conflicts directly 
with their testimony ? 

Mr. DoRAN. That is right. 

Mr. Kennedy. For instance, Mr. Vandewark's testimony and your 
testimony conflicts with his ? 

Mr. Doran. Yes, sir. 

Mr. Kennedy. And with Mr. Mathews' testimony, and you are 
aware of that ? 

Mr. DoRAN. Yes, sir. 

Mr. Kennedy. But the facts as you have related them, as to how 
nmch money you received personally and how much money you passed 
on, are the correct and true facts ? 

Mr. DoRAN. That is right. 

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

The Chairman. Are there any further questions ? 

All right, thank you. You may stand aside for the present. 

Call the next witness. 

Mr. Doran. May I go home, Mr. Chairman ? 

The Chairman. Yes. 

Mr. Kennedy. Mr. Chairman, in the interest of expediting the hear- 
ing, I would like to have Mr. Salinger testify regarding certain other 
records and funds of this local 3, as to what we have found and then 
we will have to recall Mr. Garrett just for a few minutes. 

The Chairman. All right. 

TESTIMONY OF PIERRE SALINGER— Resumed 

Mr. Kennedy. Do you have the checks there of the defense fund ? 

Mr. Salinger. Tlie defense fund ; yes, sir. 

Mr. Kennedy. Tliere was a special fund, was there not, Mr. Sal- 
inger, set up by local No, 3 ? 

Mr. Salinger. There was a special fund called the defense fund. 

Mr. Kennedy. And tliat fund was treated in a special and particu- 
lar way? 

Mr, Salinger. It was, sir. 

Mr. Kennedy. Would you explain to the committee about that? 

The Chairman. How is the fund set up, out of what moneys? 

Mr. Kennedy. Out of the regular funds of the union. 



7696 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. How is the fund set up, out of what moneys? 

Mr, Salinger. Out of the reguLar funds of the union. 

The Chairman. Out of union dues? 

Mr. Salinger. That is correct, sir. Whereas on the reguhir funds 
of the union you had to have a warrant to get a check made out, on the 
defense fund there are no warrants, and there never were any war- 
rants. 

The Chairman. Any vouchers ? 

Mr. Salinger. xVnd no vouchers. 

The Chairman. No vouchers or warrants ? 

Mr. Salinger. That is correct, sir. 

Senator Goldwater. Who was authorized to draw on that? 

Mr. Salinger. The officers signed tlie checks on it, the same officers 
who signed checks on the regular funds signed the checks also on 
this defense fund. 

Senator Goldwater. Let me ask you a point there, and I meant to 
ask you the other day. I notice some of these checks have 2 signa- 
tures and some of them have 3. Are there two required? 

Mr. Salinger. Basically 2 are required, although I think you will 
find. Senator, most of them have 3, and they have Mr. Swanson's sig- 
nature on a different line, and then the 2 underneath. 

Mr. Swanson's signature is on most of the checks on the left-hand 
side of the check. It is in a different spot. But on the defense fund, 
they actually printed different checks, and the three signatures ap- 
pear below the words "defense fund" on these checks. 

The Chairman. Do w^e speak of it as a defense fund? Is that a 
national defense fund ? 

Mr. Salinger. No ; this is a local defense fund. 

Senator Goldwater. Was that set up by action of the membership ? 

Mr. Salinger. It was, sir. 

Well, let me tell you exactly how it was set up. At an executive 
board meeting on September 13, 1950, they enacted a resolution, which 
is short and perhaps I could read it to you, which set up this fund. 

Whereas legislation is now being enacted into law in several of the States 
such as the so-called right-to-work bills, Taft-Hartley and other antilabor bills 
which make it mandatory that this union obtain and set aside funds for its 
defense ; and 

Whereas the union is in constant danger of being taken into court in any 
of its jurisdictions where these laws prevail ; and 

Whereas court costs, attorneys' fees, and so on require large amounts of 
money and funds, and should be immediately available when needed by the 
union : Therefore be it 

Resolved, That local union 3 establish a defense fund, which shall be kept 
separate and apart from its other funds ; and be it further 

Resolved, That the funds for this account be obtained in the following manner : 
That after September 25, 1950, the initiation fees for local 3, 3A, and 3B be 
increased to $20, that all reclassifications to local 3 be increased to $20, and 
that all transfers except former members of local 3 be increased to $20, and 
that the above apply to applicants in California only ; and be it further 

Resolved, That the regular officers in the manner prescribed by the bylaws, 
be authorized to withdraw from this fund all necessary expenses for both 
legal and organizing expenses. 

Senator Goldwater. Was there any limit put on that fund by that 
executive action ? 

INIr. Salinger. None whatever. 

Senator Goldwater. Was that action ever referred to the mem- 
bership ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7697 

Mr. Salinger. It was referred to the membersliip in the manner 
in which they referred all of the executive board meetings and the 
minutes of the next regular membership meeting says "A synopsis 
of the executive board minutes were read and approved," and we have 
never been able to determine just how much of a synopsis, whether it 
was a short or long synopsis. In fact, that is one of the things that 
the construction stiffs were talking about. They kept talking about 
synopses in their letters. 

Senator Curtis. Now, these funds that ended up in the defense f mid, 
for instance the increase in the initiation fee, would that first be 
paid in to their regular funds and then paid to the defense fund, 
or did individual items go direct from their source to the defense 
fund ? 

Mr. Salinger. The ledger sheets of the defense fund indicate that 
all of the moneys that went into the defense fund were transferred 
from the general fund, which would indicate they went into the 
general fund first. 

Senator Curtis. Were warrants drawn for those amounts ? 

Mr. Salinger. A simple transfer would be made, a transfer of 
funds from their general funds to the defense fund. 

Senator Curtis. So in order to supply the defense fund, they were 
removing money from the general fund by mere transfer and not by 
means of warrants and checks signed. 

Mr. Salinger. That is correct, sir. 

Senator Curtis. How much money did they have in the defense 
fund ^ 

Mr. Salinger. Well, our check of the record of the defense fund 
indicates that in the period from June 11, 1951, to April 15, 1957, a 
total of $79,399.29 was expended from the defense fund. 

Senator Curtis. Have you examined the expenditures ? 

Mr. Salinger. We have, sir. 

Senator Curtis. Were there expenditures for things other than 
opposing legislation ? 

Mr. Salinger. There were. 

Senator Curtis. That is all, Mr. Chairman. 

Mr. Kennedy. Now, you have a breakdown there of certain items 
which have no authorization and no vouchers at all ; do you ? 

Mr. Salinger. With all of these, there is no voucher on any part of 
this. 

Mr. Kennedy. On any of the $76,000 ? 

Mr. Salinger. That is right. However, out of that some $23,049.29 
has been traced to where they say it went. 

Mr. Kennedy. We were able to trace $23,000 of the $79,000 so that 
the records show that it was supposed to have been spent. 

Mr. Salinger. That is correct. 

Mr. Kennedy. Now, could you tell us about some of the other items 
that we came across ? 

Mr. Salinger. Some of the items that are out of this defense fund 
are items that we have already discussed here. For examp]e, the 
$10,000 which went for tlie promoting of the pension fund at the 
international convention in 1956 was drawn out of this defense fund. 

Mr. Kennedy. Now, were you able to break that down, for the 
pension fund ? 

21243 — 58— pt. 19 1,3 



7698 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Salinger. We were. 

Mr. Kexnedy. Now, Mr. Yandewark and Mr. Clancy have testi- 
fied regarding how much money they received from that pension- 
fund drive. 

JMr. Salinger. Yes, sir. 

Mr. Kennedy. And they each said they got a check for $400? 

Mr. Salinger. That is correct. 

Mr. Kennedy. Did we find that in fact they received more money 
than that? 

Mr. Salinger. We did. 

Mr. Kennedy. Woukl you tell the committee what other moneys 
they received from that pension fund ? 

Mr. Salinger. Well, the $10,000 for this pension fund was a check 
which is an exhibit here, which was drawn to the order of the Ameri- 
can Trust Co. This check was then converted into a number of cash- 
iers checks, to various individuals who were going back to the con- 
vention. 

The largest of these was a check to Y. S. Swanson in the amount 
of $4,650. 

The records of that bank indicate tliat on that same day Mr. Swan- 
son converted this $4,650 cashier's check into 8 $500 checks, all of 
them made out to Y. S. Swanson, but 2 of them eventually cashed 
by Pat Clancy, and he received $1,000 and a $500 check cashed by 
B. E. Yandewark. 

Mr. Kennedy. That was over and above the checks they received 
directly ? 

Mr. Salinger. Over and above the $400 each thev received out of 
the original $10,000. 

Mr. Kennedy. Wliich they testified to. 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. So Clancy received $1,000 in addition, and Yande- 
wark received $500 in addition. 

Mr. SalinT?er. That is correct. 

Mr. Kennedy. That is in addition to the money that they testified 
that they received ? 

Mr. Salinger. That is correct. 

Senator Cn?Tis. And now we are talking about funds that were 
used to promote a pension ? 

Mr. Salinger. Correct. 

Senator Curtis. And not funds that belonged to a pension plan? 

Mr. Salinger. That is correct, Senator. 

Senator Curtis. Now, who were to benefit by the pensions if it was 
developed ? Was it for the rank and file, or for the officers and em- 
ployees group? 

Mr. Salinger. It was for the officers and employees of the union. 

Senator Curtis. So they took money that belonged to the union 
members in order to carry on their propaganda to get the union 
members to vote a pension for themselves ? 

Mr. Salinger. The most directly affected people were the very 
people who were getting these funds to lobby for the passage of the 
pension bill. 

Senatoi- Curtis. And they got the fund from the people that would 
have to pay the pension ? 

Mr. Salinger. Tliat is correct, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7699 

Senator Curtis. Did the pension ever go tlirougli ? 

Mr. Salinger. I understand it did, Senator. 

Senator Curtis. Do you know how elaborate it was ? 

Mr. Salixoer. I do not know, Senator. 

Mr. Kennedy. But it was a pension and these people that went to 
vote on the pension were the ones to receive the pension? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. Just the officers and employees of the union? 

Mr. Salinger. Yes, sir. 

Mr. IsjiNNEDY. So according to their record they appropriated 
$10,000 to promote the pension, and they were to promote it among 
those who were going to get the pension anyway. 

The Chairman. From those who were going to pay it. 

Mr. Kennedy. It was taken from those who were going to pay 
for the pension. 

The Chairman. The $10,000 was taken from the funds of those 
who were going to pay the i>ension, to promote the pension, for those 
who were going to get the pension. 

Mr. Salinger. That is correct. Senator. 

Mr. Kennedy. Now were there any others? 

Mr. Salinger. Then we have the $10,000 that we have had in evi- 
dence here, which went for the fighting of the '"construction stifi's," 
and tliat came out of this fund. 

There is no accounting for any of those funds. 

Senator Goedwater. Did you at any time get into tlie "•eonstructioh 
stiffs'" organization? 

Mr. Salinger. We did not. Senator. ^Ve have some of their 
])ulletins. 

Senator Goldwater. But you don't know how much they spent in 
this line ? 

Mr. Salinger. I do not know. They would put out periodical bul- 
letins, but how extensively they mailed them out I don't know. 

Senator Curtis. They didn't get any of the union funds ? 

Mr. Salinger. No, sir; they were working on their own. 

Now, in addition we have had some testiuiony here al)out the na- 
tional check cashing expedition, and the three $2,000 checks cashed 
on that affair came out of this fund. 

Do yon want any more of tlie specific items out of hei-e ? 

Mr. Kennedy. Whatever else we were able to trace down, was there 
any place where the money was supposedly spent and in fact we found 
it was not spent there ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. For instance, the original drive in Yerington, Nev. 

Mr. Salinger. Now, in connection with the organizatioiial drive in 
Yerington, Nev., there were 3 checks drawn, one for $1,000 and one 
for $1,200, and another for $2,000. I talked to officials of the Ana- 
conda Copper Co. in Yerington and they said if there was an organ- 
izing drive down there they were completely unaware of it. 

Mr. Kennedy. How many people, or how big is Yerington, Nev.? 

Mr. Salinger. About 900 people. 

Mr. Kennedy. And how much monev did thev spend ? 

Mr. Salinger. $4,200. 

Mr. Kennedy. And how many em])loyees did .Vnaconda Copper say 
that they had who were members of the Operating Phigineers^ 



7700 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Salinger. I do not know. They don't have it broken down 
that way in Nevada, but the union claims they have 37 members in 
Yerington, Nev. 

Mr. Kennedy. So that was about more than $1,000 a member. 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. For organizational purposes. 

Mr. Salinger. Yes, sir. 

Mr. I^nnedy. Are there any other matters there? 

Mr, Salinger. Yes, we have 4 checks here amounting to $14,000. I 
will find that in a moment. They were made payable to cash which 
were cashed by the bookkeeper of the union, Mr. Garrett, and he 
might explain what he did with them, 

Mr. IvENNEDY. Could we recall Mr. Garrett and ask what he did? 

The Chairman. Would you state that again ? 

Mr. Salinger. I have 4 checks, one in the amount of $5,000 and one 
in the amount of $2,000, and another in the amount of $2,000, and a 
third one in the amount of $5,000, and a total of $14,000, all made out 
to cash, and all cashed by Mr. E. L. Garrett, the bookkeeper of the 
union. 

The Chairman. Mr. Garrett, will you come forward, please? 

TESTIMONY OF ELWOOD L. GAREETT— Resumed 

The Chairman. Let me have those checks and we can identify 
them and make them exhibits. 

Mr, Garrett, you are being recalled and you will remain under the 
same oath. 

I present to you a series of 4 checks, photostatic copies of 4 checks. 
They are drawn on the account of local union No. 3, each one of them 
made payable to cash and they are dated August 6, 1954, and one in 
the amount of $5,000. Another is October 16, 1952, in the amount of 
$2,000. Another one is dated October 16, 1952, in the amount of $2,000 
and another is March 5, 1953, m the amount of $5,000. 

I ask you to examine these photostatic copies and state if you iden- 
tify them. 

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

(Documents were handed to the witness,) 

Mr, GARRET-r. Yes, sir, I can identify these checks. 

The Chairman. They were issued by you and cashed by you, were 
they ? 

Mr. Garrett. Yes, sir. 

The Chairman. Thank you very much. 

Those checks may be made exhibits 67, 68, 69, and 70, in the order 
of their dates, 

(Documents referred to were marked "Exhibits Nos, 67, 68, 69, and 
70" for reference and will be found in the appendix on pp, 7908-7911,) 

The Chairman. The checks liave now been identified and made 
exhibits. All right, Mr. Counsel, proceed, 

Mr, Kennedy. Mr. Garrett, can you tell us or tell the committee 
what you did with the money once you got it ? 

Mr. Garrett, I was ordered to go down to the bank at the corner, 
and when I returned I turned the money immediately over to IMr. 
Swanson. 

The Chairman, All of it? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7701 

Mr. Garrett. On each occasion, yes. They were caslied on differ- 
ent dates. The entire amount Avas turned over to Mr. Swanson. 

The Chairman. In each instance, when you went and cashed one 
of those checks, you turned all of the cash over to Mr. Swanson ? 

Mr. Garrett. That is right. 

The Chairman. How come you had to draw the checks ? 

Mr. Garrett. I was ordered by Mr. Swanson to draw tliem. 

The Chairman. You were ordered to issue the checks and to sign 
them and to go and get them cashed and turn the money over to 
Swanson? 

Mr. Garrett. That is right. 

Senator Mundt. Did he give you a receipt for it ? 

Mr. Garrett. No, sir. 

Senator Mundt. Did he order you not to ask for a receipt ? 

Mr. Garrett. No, sir. He just ordered the checks made up, and 
they were signed by the officers, and he called me in and ask^d me to 
go down to the bank and cash them, which I did, and returned and 
turned the money over to him. 

Senator Mundt. With no receipt ? 

Mr. Garrett. No, sir. 

The Chairman. Do you have any record as bookkeeper of the 
union, of how that money was expended ? 

Mr. Garrett. No, sir. 

The Chairman. Do you have any records showing it was spent for 
union purposes ? 

Mr. Garrett. No, sir. 

The Chairman. All right, proceed. 

Mr. Ivennedy. That is all as far as the defense fund is concerned 
and Mr. Garrett is concerned. 

The Chairman. Mr. Garrett, you may stand aside, 

TESTIMONY OF PIEERE E. SALINGER— Eesumed 

Mr. KIennedy. I believe Mr. Swanson got in some difficulty with 
the Federal Bureau of Investigation recently; did he not? 

Mr. Salinger. He did. 

Mr. Kennedy. That was in connection with making false statements 
to the FBI? 

Mr. Salinger. That is correct. 

Mr. Kennedy. And he was indicted ? 

Mr. Salinger. He was. 

Mr. Kennedy. Was any money used out of the defense fund to 
defend him in that matter ? 

Mr. Salinger. There was, sir. 

Mr. Kennedy. How much was used ? 

Mr. Salinger. A total of $10,000 was paid out of the defense fund 
for the defense of Mr. Swanson. 

The Chairman. For making false statements to the FBI ? 

Mr. Salinger. That is correct, sir. 

The Chairman. Where was he indicted ? 

Mr. Salinger. He was indicted in the Federal district court in San 
Francisco, Calif. 

The Chairman. Has he been tried yet ? 



7702 IMPROPER ACTIVITIES IK THE LABOR FIELD 

Mr. Salinger. He pleaded nolo and he received a 2-year probation 
and had to repay the Government $7,500 for the cost of the FBI inves- 
tigation, which led up to the indictment. 

The Chairman. That case then has been disposed of ? 

Mr. Salinger. It has, sir. 

The Chairman. Well, do yon find any records of where the union 
has been reimbursed for the $10,000 it spent on him ? 

Mr. Salinger. No, sir. 

The Chairman. What fund did that come out of ? 

Mr. Salinger. That came out of the same defense fund. Senator. 

The Chairman. Well, it is a defense fund then for some people ? 

Mr. Salinger. It appears to be, sir. 

The Chairman. Proceed. 

Mr. Kennedy. That originally arose out of the investigation that 
was being made of the "construction stiffs''; is that right? 

Mr. Salinger. Yes, sir. Would you like me to give you a brief 
resume on that ? 

Mr. Kennedy. And the hiring of Mr. Riley, and Mr. Riley then 
went down to try to investigate the "construction stiffs" ? 

Mr. Salinger. That is right. 

Mr. Kennedy. And received a letter ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. And in the letter, Mr. Swanson forged a threat to 
him, personally ? 

Mr. Salinger. He forged a death threat to Mr. Riley, and he inter- 
cepted the letter. It was on its way from the "construction stiffs'* to 
Mr. Riley and he inserted a death threat, the theory being that Mr. 
Riley would then report to the FBI that he had been threatened 
through the mails, which is a Federal crime, and the FBI would find 
out who tlie "construction stiffs" were. 

The Chairman. They were going to use that device to have the 
Federal Government's representative investigator find out who the 
"stiffs" were? 

Mr. Salinger. Apparently they failed in every other way, and 
this was their last resort. 

Senator Curtis. How was that case disposed of ? 

Mr. Salinger. Mr. Swanson pleaded nolo contendere and he did not 
contest the suit. 

Senator Curtis. Equivalent to a plea of guilty ? 

Mr. Salinger. I am not a lawyer, sir, and I do not know exactly 
what it is. 

Mr. Kennedy. Is there any other matter in the defense fund we 
wish to discuss ? 

Mr. Salinger. I think we have covered the defense fund. 

Mr. Kennedy. There is one other thing that I wanted to talk to you 
about, and that is the Marshall Construction Co ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. Now, the Marshall Construction Co. was a company 
of Mr. Marshall Swanson ? 

Mr. Salinger. Yes, sir ; there are actually two companies, the Don- 
ald A. Cameron, Inc., which was the predecessor company, and then 
there was the Marshall Development Co. 

Mr. Kennedy. Donald Cameron was on the public utilities com- 
mission with Mr. Swanson ? 



IMPROPER ACTIVITIES IX THE LABOR FIELD 7703 

Mr. Salinger. He was. 

Mr. IvENNEDY. And he and Marshall Swanson went into business 
together, the construction business ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. They built some homes ? 

Mr. Salinger. They built about 15 homes. 

Mr. ICennedy. And then that partnership broke up, about 1954 ? 

Mr. Salinger. July of 1954, the partnership broke up. 

Mr. Kennedy. And then Mr. Marshall Swanson formed his own 
company ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. And did he receive some contracts then from the 
Operating Engineers ? 

Mr. Salinger. He did. 

Mr. Kennedy. What was the first contract he received ? 

Mr. Salinger. The first contract he received was for the building 
of the union building at Marysville, Calif. That contract was actu- 
ally let while he was still connected with Donald A. Cameron, Inc. 
I will give you the price on that building. That building cost a total 
of $54,8:>3.14. 

Mr. Kennedy. And he actually put a bid in on that ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. That company put a bid in on that? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. And he received the contract ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. Received the aAvard of the contract ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. And he constructed the building? 

Mr. Salinger. He did. 

Mr. Kennedy. Bid he do any other work for the building ? 

Mr. Salinger. There is one thing in addition. In connection with 
the Marysville building, in addition to the Donald A. Cameron, Inc., 
getting the contract to build the building, Mr. Swanson, Marshall 
Swanson, received a check from the union in the amount of $2,047.35 
to supervise the construction of the Marysville building. 

His company was building it and he got the supervision fee from 
the union. 

Mr. Kennedy. Did he receive any other contracts from the union? 

Mr. Salinger. He received a number of them. 

Mr. Kennedy. Did he ever put a bid in ? 

Mr. Salinger. No ; none that we understand. 

Mr. Kennedy. He received a number of other contracts for the 
construction work done by the union, and yet never placed a bid; is 
that right? 

Mr. Salinger. That is what we understand. 

Mr. Kennedy. The contracts were all awarded to him or given to 
him? 

Mr. Salinger. He just did the buildings. 

Mr. Kennedy. How much in building, totally, did he do for tlie 
union, construction work for the union? 

Mr. Salinger. A total of construction work, paid to Donald A. 
Cameron, Inc., by the; union, $100,074.81. 



7704 IMPROPER ACTIVITIES IN THE L.\BO'R FIELD 

And paid to the Marshall Development Corp. $717,020.23. 

Mr. Kennedy. 'VVliat financial arrangements did Mr. Marshall 
Swanson and the Marshall Construction Co. have with the union ? 

Mr. Salinger. As to the profit margin, you mean ? 

Mr. Kennedy. As far as the contracts that he did, other than the 
first one which was on a bid basis. 

Mr. Salinger. Our examination of the records of the union and of 
the Marshall Development Co. showed that as the Marshall Develop- 
ment Co. built the building, they received the actual construction 
money or operating capital from the union as they went along. 

For example, in the Stockton building they would receive chunks 
of $60,000 each, approximately every month or so, as the building 
progressed toward completion, so that the Marshall Development Co. 
did not have to put up any appreciable operating capital. 

Mr. IvENNEDY. How much did they actually receive? What were 
the financial arrangements with the union so far as profit was con- 
cerned with the company ? 

Mr. Salinger. They varied slightly, but generally they were on a 
basis of 10 percent general overhead and margin over and above the 
cost of the building. 

Mr. Kennedy. So that the union would put up the money. No. 1 it 
was not put out on a bid basis, and it was a cost-plus basis; is that 
right ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. Cost plus 10 percent ? 

Mr. Salinger. That is correct. 

Mr. Ivennedy. And the union put up the money for the building 
of the property ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. And putting up tlie building; is that right? 

Mr. Salinger. That is right. 

Mr. Kennedy. And he got 10 percent above all of that as profit? 

Mr, Salinger, That is right. 

Mr. Kennedy. So he was taking no risk at all. 

Mr. Salinger. There does not appear to be any risk. 

Mr. Kennedy. And he made 10 percent of that, so he made the 
original deal, plus about $750,000 of construction work, which would 
be about $75,000 that he made ? 

Mr. Salinger. That is correct. 

Mr, Kennedy. And then did he also get some supervisory fees from 
the union for the work he was doing ? 

Mr. Salinger. All of these jobs show — for example, here I am 
looking at San Jose Building, superintendent, Mr. M. B, Swanson, 
$1,582.50. That was added to the cost, so actually the 10 percent was 
over and above the superintendent fee. 

Mr. Kennedy, And he got 10 percent of that ? 

Mr. Salinger. Yes, sir. 

Mr. Kennedy. He got 10 percent of the fee that he received as 
supervisor ? 

Mr. Salinger. Since the superintendent's fee was put in as a part 
of the total cost, he got 10 percent of the superintendent's fee; that 
is correct. 

Mr, Kjennedy. Does he have some elaborate office out in San Fran- 
cisco ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7705 

Mr. Salinger. No, sir. 

Mr. IvENNEDY. Where does he operate ? 

Mr. Salinger. He operates out of his home. 

Mr. KJENNEDY. But does he have a number of employees ? 

Mr. Salinger. He has employed different numbers of people, on 
various jobs, carpenters, and laborers. 

Mr. IvENNEDY. What about his office help ? 

Mr. Salinger. His wife is his bookkeeper. 

Mr. KJENNEDY. So that 10 percent of her fee is also charged to the 
union ? 

Mr. Salinger. In some of these contracts, it shows a bookkeeper's 
fee or office expense is added to the cost. 

Mr. Kennedy. So the office expense, and then the 10 percent on 
top of that, is that right, for profits ? 

Mr. Salinger. That is correct. 

Mr. Kennedy. Is that an unusual arrangement, Mr. Salinger ? 

Mr. Salinger. Well, Mr. Gordon and I have been talking to vari- 
ous contracting associations about this, and they seemed somewhat 
amazed, and the best they can describe it is that Mr. Marshall Swan- 
son had a very generous father. 

Mr. Ivennedy. Or a charitable father? 

Mr. Salinger. Yes ; charitable father. 

The Chairman. This Swanson that does all of this building is the 
son of the Swanson who is the boss of this union ? 

Mr. Salinger. That is correct, sir. 

Mr. Kennedy. I think that that is all. 

Mr. Salinger. Do you want to put in this general organizing 
fund? That is all of that, I think. 

]Mr. Kennedy. Mr. Victor Swanson, Mr. Chairman. 

The Chairman. Mr. Swanson, come around, 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. Swanson. I do. 

STATEMENT OF VICTOR S. SWANSON, ACCOMPANIED BY HIS 
COUNSEL, BYRON N. SCOTT 

The Chairman. Mr. Swanson, state your name, your place of resi- 
dence, and your business or occupation. 

Mr. Swanson. My name is Victor S. Swanson, address, 366 15th 
Avenue, San Francisco, Calif., manager of local union 3 up to the 
time there was a move by a kangaroo court. 

The Chairman. Did a kangaroo court remove you ? 

Mr. Swanson. The kangaroo court removed me. You have the 
record there. 

The Chairman. Was it last September ? 

Mr. Swanson. Yes, sir. 

Senator Mtjndt. Who was the judge of the kangaroo court? That 
is a new one to me. 

The Chairman. Just a moment. Let us have counsel. 

Do you have counsel to represent you ? 

Mr, S^vANSON. Yes, Your Honor. 



7706 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. Counsel, will you identify yourself for the record. 

Mr. Scott. Byron N. Scott, 5l7*^Wyatt Bui'kling, Washington, D. C. 

Senator Mundt. Mr. Swanson, you said you were removed by a 
kangaroo court. My question was, Who is the judge of the kangaroo 
court ? 

Mr. ScoTT. Who was the judge ? 

Senator Mundt. Yes. 

Mr. Swanson. William E. Maloney, general president, was the 
judge, jury, and the prosecutor. 

Senator Mtjndt. Hewa 

Mr. Swanson. Yes, sir. 

The Chairman. May I inquire, I have just been handed a state- 
ment. Do you have a prepared statement that you wish to read ? 

Mr. Swanson. I have. 

The Chairman. Have you examined it, Mr. Counsel ? 

Mr. Kennedy. Yes ; I have. 

The Chairman. Without objection you may read your statement. 

Mr. Swanson. I have a little difficulty seeing, but I will do the best 
I can. 

The Chairman. If you are not able to read the statement, we will 
permit your counsel to read it for you. 

Mr. Swanson. Thank you very much. 

The Chairman. All right, Mr. Swanson, you may proceed and if 
you have difficulty, we will permit your counsel to read the statement. 

Mr. Swanson (reading) : 

Mr. Chairman and members of the committees, I appreciate greatly the oppor- 
tunity to make this brief reply to the many false, unfounded statements that 
have been made by prior witnesses about me and my conduct as business 
manager of local 3. 

This honorable committee will be in no position to understand or resolve the 
conflict between the testimony it has heard and the testimony I will present 
without an appreciation of its underlying background. 

I have been business manager of local 3 since 1941 and prior thereto was a 
official of its predecessor for 20 years. This has been my life's work, and I 
say to you with humility that I am pi-oud of what I have contributed to the 
many tliousands of workingmen that I have been privileged to represent, and 
I am proud, too, of what I feel I have been able, as a representative of these 
many good citizens, to contribute to the betterment of my community generally. 

But I am distinctly not proud of the international union or, at least, the top 
officials of that union with whom I have for many years been forced to associate 
and through whom I necessarily had to function on behalf of the rank and file 
membership I represented. 

And this, gentlemen, is the key to the whole picture. I say without fear of 
successful contradiction that the international union is one of the most cor- 
ruptly led unions on the American scene. I believe that this committee will 
successfully trace that festering corruption to the mobster, racket-ridden days of 
no less a notorious figure than Al Capoue. And I say to you, in all sincerity, 
that the only reason I am sitting here today is becaiise for years I have been 
doing my utmost to eradicate that rotten leadership from our midst and that 
only because I was on the verge of success have I been victimized by a calculated 
conspiracy to destroy me. my career, my reputation and my life's work. 

It may well be that not everything I have done in the course of my career will 
meet the high standards that are necessarily yours and which properly you 
apply as a committee of the most respected legislative tribunal in the world. 
I would, however, respectfully suggest that there is a vast difference between 
performing the day-to-day duties of a local trade-union leader in seeking to 
adjust to the hard realities of economic conflict and performing your high duty 
of evaluating and formulating national policy. 

But, whatever my excesses, whatever errors or wrong I may have done, they 
were not motivated by any conscious desire for self -enrichment, but for what I 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7707 

honestly thought at the moment would best sei've the interests of the workers 
I represented. And whatever these excesses and wrongs, they do not remotely 
resemble the testimony you have heard. That testimony is nothing less than 
the coerced or bought or inspired work of one Mr. William Maloney, the presi- 
dent of our international union and Mr. Joseph Delaney, its secretary-treasurer, 
who seek thereby to divert the attention of this committee and the public it 
represents from their own deepseated corruption. 

Unlike others, I have presented myself to this committee despite a medical 
warning, which I have in writing, against any great mental or physical tension, 
because of my 75 years and because of the condition of my heart and of my 
blood pressure. 

I am here, Mr. Chairman and gentlemen, to answer your questions to the best 
of my ability, and let the chips fall where they may. 

The Chairman. All right, thank you very much, Mr. Swanson. I 
am sure that the committee and counsel will take into account your 
physical condition, and if you tire and need a rest, "we will take those 
things into account. We want you to testify fully and we want you 
to have the opportunity to do exactly what you say you want to do. 

All right, Mr. Counsel, proceed. 

Mr. Kennedy. Mr. Swanson, how long have you been an official 
of the labor union movement ? 

Mr. Swanson. Since 1919. 

Mr. Kennedy. Since 1919? 

Mr. Swanson. Yes, sir. 

Mr. Kennedy. AVhat position did you hold at that time ? 

Mr. Swanson. I was elected the president of local No. 59. 

Mr. Kennedy. Where was that ? 

Mr. Swanson. In San Francisco. 

Mr. Kennedy. That was the Operating Engineers ? 

Mr. Swanson. Yes, sir; that is one local that afterward became 
local No. 3. 

Mr. Kennedy. How many members did you have at that time ? 

Approximately. Do you remember ? 

Mr. Swanson. It is different. We had all the way from 200 to 
probably 250. 

Mr. Kennedy. Were you practicing your trade at that time ? What 
were you doing ? 

Mr. Swanson. Wait a minute. I went back to the time I became a 
member, excuse me. I don't have the record here, but I was elected 
president in 1919, and in 1921 I was elected business agent of local 
union 59. That afterward became one of the parts of local 3. 

Mr. Kennedy. "Wliat was your trade at that time ? 

Mr. Swanson. An engineer. 

Mr. Kennedy. Were you an engineer ? 

Mr. Swanson. Yes ; an operating engineer. 

Mr. Kennedy. And when was local 3 formed ? 

Mr. Swanson. In 1941 when it became a local autonomy. I don't 
have all the dates. 

Mr. Kennedy. It is approximately, and that is all I am looking 
for. 

Then you lost your eye in 1943 ; did you ? 

Mr. Swanson. It was in 1944 when I got acid thrown into my 
eyes, and I have 40 percent of 1 left and the other 1 is an artificial eye. 

Mr. Kennedy. What happened as far as the acid was concerned, 
and where was the acid thrown in your eye ? 



7708 EVIPROPEK ACTIVITIES IN THE LABOR FIELD 

Mr. SwANSON. I came out of a building-trades meeting in San 
Francisco, and my wife, Mrs. Swanson, was sick and so I was called 
out early and as I went out I was approached by 2 or 3 men, and I 
was struck first, and then when they thought I was dead, they threw 
the acid in my eyes, and that probably brought me to life a little bit. 
It burned my whole face, my whole face was burned off, my ears and 
my face. 

Mr. ICennedy. Wliat do you mean you were struck first? 

Mr. SwANSON. I was struck, pounded to pieces. 

Mr. Kennedy. When you were down on the ground, they threw the 
acid ? 

Mr. SwANSON. Just as I went into a car, as I opened the door, from 
behind I was struck. 

Mr. Kennedy. You were knocked down and they threw the acid 
in your face ? 

Mr. SwANSON. Yes. 

Mr. Kennedy. Did they ever find out who was responsible for 
that? 

Mr. SwANSON. We spent a lot of money, and we thought many 
times we had the responsible parties, but we didn't have such evidence 
to convict them. They were from the other groups. 

Mr. I\JENNEDY. It was from what ? 

Mr. Swanson. From other groups. 

Mr. Kennedy. Within the Operating Engineers ? 

Mr. SwANSON. Oh, no ; that is, one of them wasn't, but I can't 

Mr. Kennedy. Was it involved with your job as a labor official, was 
it in connection with that ? 

Mr. SwANSON. Oh, yes. It was the same people that, most of the 
people in my opinion that afterward tried to disrupt the organiza- 
tion. 

Mr. Kennedy. But they were never able to determine exactly who 
was responsible. 

Mr. SwANSON. It was never brought out who they were, and they 
were never convicted, in other words. 

Mr. Kennedy. Was anybody arrested in connection with it? 

Mr. SwANSON. The police department in several places spent a lot 
of time and called a lot of people in but they were never able to find 
out, and the State attorney general was trying to locate these people 
and the local had a call out and everything and we never got enough 
evidence on them to go to trial, in other words. That was I think in 
1944, and my memory isn't quite as good as it should be. 

Mr. Kennedy. When was local No. 3 formed, in 1941 ? 

Mr. Swanson. It was in 1939 and then it was under national super- 
vision until 1941 when we had an election. And I was elected manager 
and I was elected all through the years. 

(At this point, the following Senators were present: Senators 
McClelLm, Mundt, and Curtis.) 

Mr. Kennedy. And you have been manager since that date? 

Mr. Swanson. I have. 

Mr. Kennedy. Up until the time that you were removed, just a 
short time ago ? 

Mr. Swanson. That is correct. 

Senator Mundt. To go back a little bit, Mr. Swanson, prior to 1919 
how long had you been an operating engineer? How did you get 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7709 

to be aji operating engineer ? Was your father an operating engineer ? 

Mr. SwANSON. I became a member of the engineers m 1906, and 
then afterward in 1911 I became a member of local 59. The first 
local was a local that afterward became a member of local 59. I 
started in San Francisco in 1906, when I came there. 

Senator Mundt. Are you a native Calif ornian ? 

Mr. SwAxsoN. No; I am a native of North Dakota. 

Senator Mundt. You left the farm and went out to the west coast 
and took up engineering ; is that it ? 

Mr. SwANSON. I starved to death over there. Pardon me. 

(The witness conferred with his counsel.) 

Mr. SwANsoN. I left the farm rather early, Mr. Senator, but I 
worked in manj^ places. I worked in Michigan. I think I worked 
in every State in the union but one, over a few short years as a young 
man, and kicked around, and I learned a whole lot about this country. 
The only State I never had a chance to work in was in the State of 
Florida.*^ 

Senator Mundt. So for 52 years, then you have been a member of 
the union ? 

Mr. SwANSON. Fifty-one, I think, and 6 months, something like 
that. I think I have the books. I haven't got them on me. I paid 
dues all that time. 

Mr. Kennedy. I want to ask you about some of the matters con- 
cerning you that have been testified to before the committee. First 
on this Stockton land deal, according to the testimony, the land ini- 
tially was purchased by the union, the union paid $33,500 when the 
land in fact should have only cost them $29,500. Mr. Doran got the 
difi'erence of $4,000. Do you follow me so far ? 

Mr. SwANSON. I do; yes. 

Mr. Kennedy. Mr. Doran's testimony is that he took the money 
and he went up to San Francisco and gave the money to Mr. Vande- 
wark, and that you were present in the building or present in the 
room at the time ; is that correct ? 

Mr. SwANSON. I have no recollection of it. I don't remember ever 
being present. 

Mr. I^nnedy. Did you know that the land was purchased by the 
union for $29,500, although they paid $33,500? 

Mr, SwANsoN. I can't recollect, no. I only know what they paid 
for it in tlie beginning. 

Mr. Kennedy. You didn't know that there was a $4,000 kickback 
to Mr. Doran ? 

Mr. SwANSON. No, sir. 

Mr. Kennedy. You were not aware of that ? 

Mr. SwANSON. No, sir. 

Mr. Kennedy. Are you the one that recommended that the land 
be purchased ? 

Mr. SwANSON. I think I recommended the land to be purchased. 
It was a former cemetery, and an old cemetery, and it was some 6 
acres. 

Mr. Kennedy. That is all right. But you say you were- not in- 
volved in the original transaction where there was a $4,000 kickback ? 

Mr. SwANSON. No. 

Mr. Ivennedy. And you were not aware that that money was split 
between Mr. Vandewark and Mr. Doran ? 



7710 IMPROPER ACTIVITIES IN THE LABOK FIELD 

Mr. SwANSON. No ; I was not. 

Mr. IvENNEDY. And you were not aware that that money was split 
between Mr. Vandewark and Mr. Doran ? 

Mr. SwANSON. I was not. 

Mr. Kennedy. The first plot on our chart, the land ^vas sold by 
the union for $8,500. Do you follow me ? 

Mr. SwANSON. No. 3 ? 

Mr. Kennedy. No; No. 1. 

Mr. SwANSON. What is the question? 

Mr. Kennedy. You sold the first plot for $8,500. The plot went 
for $8,500, sold by the union for $8,500, when, in fact, the purchaser 
paid $20,000 for "it. There was a difference of $9,884.76. Did you 
receive any of that money ? 

Mr. SwANSON. I did not. 

Mr. Kennedy. You did not. Mr. Doran has testified that he turned 
this money over to you, he paid the taxes and turned the money over 
to you, and then you, in turn, gave him some of the money back. 

Mr. SwANSON. I wasn't here when he testified. But whether he 
testified or not, I did not. 

Mr. Kennedy. You did not receive any of that ? 

Mr. SwANSON. That is correct. 

Mr. Kennedy. Did you know that the union was selling this prop- 
erty for $8,500, when it could in fact have sold it for $20,000 ? 

Mr. SwANSON. I am not sure if I get you correctly. I think I 
was away at that time. I do not think I was in Stockton when any 
of those transactions took place. That is as I remember it. 

Mr. Kennedy. Did you know or were you aware of the fact that 
the union sold this property for $20,000, but only received $8,500 for 
it? Were you aware of that fact? 

(Senator Mundt, at this point, withdrew from the hearing room.) 

Mr. SwANsON. I think I remember when they sold it for $20,000. 

Mr. Kennedy. Were you aware of the fact that they only received 
$8,500? 

Mr. SwANSON. No, I was not. 

Mr. Kennedy. And yet you were the business manager ? 

Mr. SwANSON. I was the business manager, but I don't think I was 
there at that time. 

Mr. Kennedy. You say you didn't receive any of that money ? 

Mr. SwANSON. No ; I did not receive any of that money. 

Mr. Kennedy. Let's take plot No. 2, sold by the union for $24,000, 
and yet the union only received $10,858. There was a kickback of 
$12,071. Did vou receive any of that money ? 

This is plot No. 2. 

(The witness conferred with his counsel.) 

Mr. SwANSON. I would like to explain that, if I can. 

Mr. Kennedy. That is what I am trying to get. 

Mr. SwANsoN. A check for approximately $12,000 — mind you, I 
don't remember the cents or dollars, but if you show me the check. 
I will tell you. Mr. Doran came into San Francisco, and I think it 
was on a Wednesday. Our board meetings were always on Wed- 
nesday. He got in a little late to go to the bank. The bank was 
downstairs, practically 2 minutes or a minute from our office. He 
said "I want you to cash this check." 

So I said "Well, let us go down and see if we can get in." 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7711 

He said, "Well, I was down there, but they don't want to cash it 
without a signature from you." I said, "I^ave it here and I will 
cash it for you." He said, "Can you give me some money ? I want 
some money, I need some cash." 

To my best recollection, I gave him $1,600. Then he said to me 
"I want you to get a check for Pat Clancy for $800." He didn't tell 
me what it was for. He said "Get a check for him, and get a check 
for Doran for $3,000"— if I miss it, it is $;],900. 

He said, "I have got to pay the Internal Revenue for this money." 
Then he says "Get a check for $5,700 for you that I owe you." 

He said, "I want to pay 3^ou. Now I got the money and I want to 
pay you." That is the story of that. 

The Chairman. Is this the check you refer to ? It has been made 
exhibit 9. It is dated July 11, 1955, in the amount of $12,071. 

(The document was handed to the witness.) 

(The witness conferred with his counsel.) 

Mr. SwANSoisr. That is my signature. 

The Chairman. That is the check you are talking about that yon 
took to the bank and cashed ? 

Mr. SwANSOX. That is correct. 

The Chairman. Did you know what that money was for? 

Did you know what that clieck was for ? 

Mr. SwAxsox. Xo. He didn't tell me at that time. I have heard 
many stories. 

The Chairman. You are endorsing a check there, getting money on 
a check, of your local. Surely as manager you must know some- 
thing about it. 

Mr. SwANSOx. Wait a minute. This is a check on the Stoclrton 
Abstract & Title Co. He said to me "Will you cash this check?" 

The (^HAiR^iAX". All right. Did you know it was for the purchase 
of that land? 

Mr. SwANSON. This here ? 

The Chairman. Yes. 

Mr. SwANSON. Since then I have it. 

The Chairman. Did you know at that time ? 

Mr. SwANSON. No. I didn't ask him at that time what it was. 

The Chairman. Wouldn't you naturally inquire "What is this 
check for?" 

Mr. SwANSON. Well, I didn't. He told me what money he wanted, 
and I carried out his request. 

The Chairman. I declare, this a pretty come-on. 

Senator Curtis. Who was it that owed you $5,000 ? 

Mr. SwANSON. $5,700. 

Senator Curtis. Who was that ? 

Mr. SwANSON. Doran. 

Senator Curtis. How long had he owed you that money ? 

Mr. SwANSON. Well, it differed over several years. But he had a 
stroke and he run out of money and he was in Reno. I was over to 
see him there. He had made loans several times since he came to 
Stockton. He bought some property and so forth. That is what it 
actually amounted to. 

Senator Curtis. Did you have any notes for this, of indebtedness? 

Mr. SwANSON. I had records, but they were in my desk. 

Senator Curtis. Where are those records now ? 



7712 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. SwANSON. I wish the officers or whoever robbed my desk before 
I got back would turn them up to us. 

Senator Cuktis. When was that? Before you got back when? 
When was that ? When was your desk robbed ? 

Mr. SwANSON. When I was on trial here, and I called that a kan- 
garoo trial, and where they removed me from office. 

Senator Curtis. What year was that ? 

Mr. SwANSON. That was in July last. 

Senator Curtis. Just a few months ago ? 

Mr. SwANSON. Well, let me tell the story. Then Mr. Carman, who 
represented Mr. Maloney, and Mr. Clancy, and Mr. Vandewark, and 
I think Mr. Mathews, they went home 2 days early, 2 or 3 days early. 

I had to stay here on account of first of all I didn't have transporta- 
tion. AVlien I came into San Francisco, I went over to my office and 
it was locked. They had changed the keys on the lock. The follow- 
ing day I called up Mr. Carman, Mr. Maloney's personal representa- 
tive, and I said, "I want to go down and get my stuff out of that 
desk." 

I had about 8 or 10 years — all of my stuff was in there. I kept 
nothing at home. So when I come in there, on my big desk the lock 
for the desk was laying on a table, and he said, "Here it is." 

I went through all my lockers, and all I could find was a lot of old 
newspapers, and a lot of run-out grievances and so forth, and all of 
my records were gone. 

Senator Curtis. Mr. Swanson, you loaned him this money on sev- 
eral occasions over a period of time, did you ? 

Mr. SwANSON. That is correct. 

Senator Curtis. You did it because he needed money '{ 

Mr. Swanson. I presume. I don't guess he would borrow money 
unless he needed it. I don't know about that. 

Senator Curtis. Wlien he came in and paid it all at once, you had 
no question in your mind about where he got the money ? 

Mr. Swanson. No, not when he handed me that check. I have no 
recollection now of it. It is quite a while ago. We have a lot of 
checks. It costs us about $200,000 a month to run the union, and we 
get a lot of money. 

Senator Curtis. Yes, but here is an employee of yours who comes 
in with a $12,000 check, and he has that divided up, and he refers to 
one item, a sizable item, of over $3,000 for taxes. Then you say he 
paid you a $5,700 debt. 

Mr. Swanson. No; $5,700. 

Senator Curtis. You just assumed that he was paying that out of 
savings, did you, out of his own ? 

Mr. Swanson. I did not go into that. He wanted $3,900 to pay 
for the income tax on it, he said, so I didn't think there was anything 
wrong with that, I wasn't running his business. He said, "Get a 
check for $3,000." 

Senator Curtis. Why would he come to you with that check in the 
first place? 

Mr. Swanson. I don't know why, except that lie was in the building, 
and the bank was closed, so he says, "Take care of that." 

He was a member of the executive board, and they met on Wednes- 
days. That is how he happened to come in there. If the bank had 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7713 

been open when he come in, he wouldn't have come to me at all, I don't 
suppose. 

Senator Curtis. Mr. Swanson, that is awful hard to understand. 

Mr. SwANSON. It is true. That is all I can say. 

The Chairman. All right. 

Mr. Kennedy. Mr. Swanson, once he came in, as Senator Curtis 
pointed out, why did you then go down and purchase cashier's checks? 

Why? ' 

(The witness conferred with his counsel.) 

Mr. SwANsoN. Well, he said that is what he wanted. Doran told me 
to get that the next day. 

Mr. Kennedy. But there would be no reason for you to go down and 
purchase cashier's checks if you were doing nothing more than giving 
him a courtesy endorsement. Were you giving him more than a cour- 
tesy endorsement ? 

Mr. SwANSON. Wait a minute. He left the check with me because 
the bank was closed, and he said, "Take this check and get it cashed," 
and then he told me what to do with it. 

Mr. Kennedy. This is entirely different than what you told the 
so-called kangaroo court. You said he came in and wanted an endorse- 
ment, and you never knew what happened to the money. When we 
traced the check down, we find out that you purchased cashier's checks 
with the money. Now you add something further to the testimony. 

Mr. Swanson. You quote me wrong. 

Mr. Kennedy. I have your testimony right here. 

Mr. SwANSON. I know, but at that kangaroo trial, most anyone went 
there. We were not under oath. 

Mr. Kennedy. What ? 

Mr. SwANSON. At the kangaroo trial, everything went, and we had 
no opportunity to look into it. Afterward, I have looked into exactly 
how it happened, to check up. 

The Chairman. Let me ask you this : You said kangaroo trial, every- 
thing went. Do you mean that you didn't tell the truth at the kangaroo 
trial i 

Mr. Swanson. I told the truth as I saw it. But I didn't have all the 
information. 

Mr. Kennedy. But the truth as you saw it 6 months ago is different 
from the truth as you see it today ? 

Mr. SwANSON. I have looked it up since, and I can tell you exactly 
what happened. 

Mr. Kennedy. This is quite a transaction. You went down and 
purchased one cashier's check for Pat Clancy, the president of the 
local, for $800. You purchased another cashier's check. for Ed Doran 
for $3,950. You purchased another cashier's check for yourself, 
$5,721. What was that for ? 

(The Avitness conferred with his counsel.) 

Mr. Ivennedy. That was $5,721. 

Mr. SwANsON. That was money that Mr. Doran owed me. 

Mr. Kennedy. He just happened to owe you $5,721 ? 

Mr. Swanson. I don't know if it was 21, but whatever it was, that 
is what he paid me, what he owed me. 

Mr. Kexnedy. Did you have a personal account in that bank where 
you got this check cashed ? 

2124.-!— 58— pt. 19 14 



7714 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. SwANSON. Downstairs, do you mean ? 

Mr. Kennedy. Yes. 

Mr. SwANSON. No. I only liad a personal account in one place and 
that was the Hibernia bank. 

Mr. IvENNEDY. You didn't have a personal account in this bank ? 

Mr. SwANSON. Not that I know of. The union had a lot of money 
in there, and they cashed anything that we signed. I don't know 
what it was. 

Mr. Kennedy. But you didn't have a personal account ? 

Mr. SwANSON. Not that I know of. I can't remember having a 
personal account. 

Mr. Kennedy. Tell me what happened on the third piece of prop- 
erty. You purchased that for $15,000 and then you sold it back to 
the union 6 months later for $35,000. 

Mr. SwANSON. You called for No. 3 ? 

Mr. Kennedy. Yes. 

Mr. SwANsoN. We had sold 1 and 2, and the other part, is that 
No. 1? 

Mr. Kennedy. No. 3. 

Mr. SwANsoN. All of this ground was part of a cemetery. 

Mr. Kennedy. All I want to know 

Mr. SwANSON. I will tell you. 

Mr. Kennedy. All right. 

Mr. SwANsoN. We bought it. Mr. Dor an and I bought that piece 
of property for $15,150. I think that is correct. I don't know ex- 
actly. But we bought that, and we bought it to — in fact, jMr. Doran 
called me up and he wanted to buy it for a trailer court. 

Mr. Kennedy. Why did you only pay $15,150 ? 

Mr. SwANSON. That was all it was worth at that time. 

Mr. Kennedy. Mr. Swanson, you just sold plot No. 2. You paid 
for plot No. 3 $45 a front foot, and you just sold plot No. 2 for $100 
a front foot. 

Mr. Savanson. Well, what about it ? 

Mr. Kennedy. 'WHiat do you mean, what about it ? Why didn't you 
pay $100 if you were buying the property ? In one case, you were a 
trustee of funds, and you sold that piece of property to yourself as a 
businessman. You had a responsibility. When you sold plot No. 2, 
you sold it for $100 a front foot. AVhen you sold plot No. 3 to your- 
self, you only charged $40 a front foot. 

Mr. Swanson. Do you want me to explain it ? 

Mr. Kennedy. If you can. 

Mr. Sw^ANSON. I can explain it. There is nothing illegal about that. 

Mr. Kennedy. Is there anything improper about it ? 

Mr. Sw^\NSON. Well, I don't think so. By the time we had sold the 
other two pieces and they started to build there, Mr. Doran had found 
3 acres in another section. 

All the officers, including myself, went up there and we thought it 
was a good buy. I think it was $30,000 we paid. I think the union 
still owns it. It is worth probably twice that much now. I don't 
knovr. So they decided not to build on this third place, but to build 
up tliere. So they wanted to sell that. I think by my estimate that 
was a fair price. 

ISIr. Kennedy. No; it wasn't, Mr. Swanson. You are absolutely 
wrong. You had sold plot No. 2 for $100 a front foot just before that. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7715 

and you bought this, yourself, for $45 a front foot. Six months later 
you sold it back and made a $20,000 profit. 

Mr. SwANSON. If we kept it another month we would have gotten 
$70,000. That went up fast. This was a cemetery. Things change 
pretty fast. 

Mr. I\JEXNEDY. That was changing back and fortli so quickly you 
could hardly see it, Mr. Swanson. 

Mr. Swanson. In my judgment, that is all that land was worth at 
that time. But after the other buildings went up and they had to fill 
this — I don't think it was even a part of Stoclrton at the time. After- 
ward, it went up fast. If Mr. Doran and I had kept that land another 
month or 2 months, in my opinion it would have been worth $70,000. 
I am telling you exactly what happened. 

JNIr. Kennedy. The only problem there is that it was already worth 
more than you paid far it. 

Mr. Swanson. Not in my opinion ; no. 

]SIr. Kennedy. Did you have it assessed by an independent assessor ? 

Mr. Swanson. Yes ; we sent people over. Anybody that would have 
paid more at that time would have gotten it. 

Mr. Kennedy. What about plot No. 2 and plot No. 1? They paid 
more for those two plots. Plot No. 1 and plot No. 2, you received more 
money for those when you were selling them to independent people, 
when you were not selling them to yourself. 

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

Mr. Swanson. Plots Nos. 2 and 1, one was sold for a hospital and I 
think one was sold for a medical building. 

Mr. Kennedy. That doesn't answer it. 

Mr. Swanson. That made all the difference in the world, then. If 
they hadn't been sold for that and built there, the other place was not 
worth any more. There was some fill in it. I am not arguing. That 
is all I thought it was worth, and I thought that was all you could 
have gotten from anybody. 

The Chair^ian. Mr. Swanson, you sold plot No. 2 for $100 a front 
foot, and they started to build something on it. What was it? 

Mr. Swanson. On that one place, I think, is built a medical build- 
ing. By the way, when all of that was going on, I don't think I 
w^as even around Stockton. I think I was in Miami. Your records 
will show. 

The Chairman. The point is you sell plot No. 2 for $100 a foot, and 
you buy right next to it, after that advance had been made in the 
price or in the value, that advance was apparent because you sold 2 
for $100 a foot, and then you sell yourself in effect plot 3 for forty- 
some-odd dollars a front foot. 

What is the difference in plots 2 and 3 in their normal value? 

Mr. Swanson. The union bought the whole thing for $35,000, and 
in the deal that they made, they made over $1,000 on all 3. But I 
am not arguing. There might be 1 piece of property here that is 
worth $100 andl over here that is worth $10,000. 

The Chairman. But when you get them side by side and purchased 
in the same tract- 

Mr. Swanson. I am not arguing that point. I am telling you what 
we bought and what we paid for it. 



7716 IMPROPER ACTIVITIES IX THE LABOR FIELD 

The Chairman. It is perfectly apparent, what you bought, what 
you paid for it, and the profit that you made out of it, AH right.. 
Proceed. 

Mr. SwANSoN. We bought it with our own money. 

Mr. Kennedy. You sold the property to the union some 6 months 
after you paid for it, 6 months after you purchased it. Did you 
take a long-term capital gain on that? 

Mr. SwANSON. Well, I think it was over 6 months. It was 6 months 
approximately. 

Mr. Kennedy. Did you take a long term ? 

Mr. SwANSON. I paid the income tax. Well, yes — what do you 
mean long term? I took what the attorney told me I was entitled 
to. 

Mr. Kennedy. Well, did you take long term ? 

(The witness conferred with his counsel.) 

Mr. SwANSON. What is 6 months ? A long term ? 

Mr. Kennedy. Over 6 months is. 

Mr. SwANSON. I think that is what I took. The attorney made it 
out. I can go and get it in 10 minutes for you, if you want it. 

Mr. Kennedy. I believe you did. Actually, it was 1 day under 6 
months. 

Mr. SwANSoN. According to the attorney, it was not. But then I 
am not going to argue that. I am not an attorney. 

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

Mr. Kennedy. What did vou do witii the $17,000 that you got out 
of that? 

Mr. SwANSoN. The $17,000 ? 

Mr. Kennedy. When you sold it. 

Mr. SwANSON. What did I do with it ? 

Mr. IvENNEDY. Yes. 

Mr. SwANSON. I don't know exactly what I done with that check, 
but my recollection is that I think I took it downstairs, and I think I 
bought — I probably took from that money, though I don't know 
whether I did or not, got a check to pay for another piece of land. , 

Mr. Kennedy. What was the other piece of land that you 
purchased ? 

Mr. SwANSON. What was the other piece of land ? 

Mr. Kennedy. What was the other piece of land that you 
purchased ? 

Mr. SwANSON. The other piece of land was in San Mateo County. 

Mr. Kennedy. Who owned that land ? 

Mr. SwANSON. What is his name? Do you mean when I bought it? 

Mr. Kennedy. Yes. 

Mr. SwANSoN. That piece of land I bought from the union. 

Mr. Kennedy. You bought another piece of property from the 
union ? 

Mr. SwANSON. For exactly what they paid. 

Mr. Kennedy. Exactly what they paid for it ? 

Mr. SwANSON. Yes. 

Mr. Kennedy. Who did they purchase it from ? 

Mr. SwANSON. Sir ? 

Mr. Kennedy. From whom had they purchased it ? 

Mr. SwANSON. I am not sure. I think it was from a party by the 
name of Lowry. I am not sure. 



IMPROPER ACTR^ITIES IX THE LABOR FIELD 7717 

Mr. Kennedt. Don't you know it was public-utilities land? 

Mr. SwANsoN. It wasn't public-utilities land then. It had been. 

Mr. Kennedy. You did not know that? You did not know that 
that piece of property 

Mr. Sanson. It wasn't public-utilities land then. 

Mr. Ivennedt. Were you on the public-utilities commission? 

Mr. SwANSON. I was on the public-utilities commission for 8 years. 

Mr. Kennedy. Did the union buy a piece of property in conjuction 
with others? Did they buy a piece of property from the public- 
utilities commission ? 

Mr. SwANSON. No, sir ; not that I know of . 

Mr. Ej:nnedy. They did not? You don't know anything about 
that? 

Mr. SwANSON. That is correct. 

Mr. Kennedy. And your son did not pay the taxes, the Marshall 
Development Co. did not pay the taxes on this piece of land while it 
was being held by the union ? 

Mr. SwANSON. Not that I know of. 

Mr. Kennedy. We have had testimony before the commitee by an 
official of the union who said that this piece of property was purchased 
from the public-utilities commission for you, because you could not 
purchase the property directly. 

Mr. SwANSON. That is not true. 

Mr. Kennedy. That is untrue ? 

Mr. SwANSON. Because I did not buy it from the public-utilities 
commission. I bought the piece of property from the union for 
exactly what they paid. 

Mr. Kennedy. And they said that because you were on the public- 
utilities commission, you could not buy this property directly 

Mr. SwANSON. No. 

Mr. Kennedy. Wait a minute. So you had them buy it, hold it, 
and then you purchased it from them for the exact same price that 
they paid for it. 

Mr. SwANSON. I could have bought the property from the same 
people the union bought, but the union at that time was contemplat- 
ing building a branch office. They, after they had the property 

Mr. Kennedy. They were going to build a branch there ? 

Mr. SwANSON. A branch. Can I finish my statement? I would 
appreciate it if I can. 

Mr. Kennedy. Yes. 

Mr. SwANSON. They criticized me for having recommended to buy 
it. I said, "Well, if that is the case, I will buy it from you at exactly 
the same price." With the check that I paid for that was a statement 
that they have in the office that if they desire to build on that piece of 
property within 2 years, they can buy it back for exactly what I paid 
for it, and that is attached to the check. 

Mr. Kennedy. You did recommend that they purchase it then ? 

Mr. SwANSON. In the beginning I recommended because I thought 
it was a good buy, and it cost — I think it was about $11,000 that we 
paid for il;. It cost that much to fill it. It is about 2 feet under water 
most of the time. We call it the hole in the ground. 

Mr. Kennedy. Did you recommend that they build an office there ? 

Mr. SwANSON. I thought it was the proper thing to do. 



7718 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. With 2 feet of water? 

Mr. SwANSON. No, They would have to fill it. 

Mr. Kennedy. They would have to fill it for another $11,000 ? 

Mr. SwANSON. Well, it was a good buy at that, in my opinion. 

Mr. Kennedy. Then you took the property off their hands? 

Mr. SwANSON. Yes. This board found fault with me, and they 
said, "What do you recommend that for?" I said, "What are you 
crying for ? I will pay for it exactly what the imion paid for it, with 
the understanding that you can buy it back in 2 years," and there is 
6 months yet to go, if they want to buy it. 

Mr. Kennedy. Pladn't this originally been public-utility land, sold 
by the city? 

Mr. SwANSON. I think the original owner — well, I think it was Mr. 
Lowry, if I am not mistaken, tliat bought the land first. He bought 
it at an auction. 

Mr. Kennedy. From the public-utilities commission? 

Mr. SwANSON. From the public-utilities commission. 

Mr. Kennedy. You were on the public-utilities commission ? 

Mr. SwANSON. Yes. He was a public citizen. We sold thousands 
of pieces. 

Mr. Kennedy. He bought it jointly with your union ? 

Mr. SwANsoN. He didn't buy it jointly with the miion. He bought 
it himself v\^ith an attorney. 

Mr. Kennedy. They put up money at the same time — Mr. Swanson,. 
you explain it. How long did Mr. Lowry own it ? 

Mr. Swanson. The union bought it from them for the purpose of 
building a branch building. 

Mr. Kennedy. You tell the committee, when did Mr. Lowry buy 
that piece of property? 

(The witness conferred with his comisel.) 

Mr. Swanson. Well, I think you better' look at the records. I 
don't remember. They will show exactly. 

Mr. Kennedy, They never did, Mr. Swanson. 

Mr. Swanson, Wliat? 

Mr. Kennedy, They never did, Mr, Swanson ? 

(The witness conferred with his counsel. ) 

Mr. Swanson. Can I ask the name of that attorney from my son 
over here ? 

The Chairman. Yes. 

Mr. Kennedy. It is Mr. Vucinish. Vladimir Vucinish. 

Mr. Swanson. That is the fellow. I don't remember the names. 

Mr. Kennedy. Can we ask Mr. Salinger to recite what the records 
show? 

The Chairman. Mr. Salinger, you may testify from where you are 
sitting. Testify loud enough over the microphone so that the witness 
can hear you, if he wants to make corrections. 

TESTIMONY OF PIERRE S. SALINGER— Resumed 

Mr. Salinger. This is a piece of land which was owned by the San 
Francisco Water Department. It was declared surplus and it was 
ordered to be sold by the San Francisco Public Utilities Commission in 
1952. At that time, Mr. Swanson was a member of the commission, and 
was present at the meeting when they declared it surplus. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7719 

Mr. SwANSON. That is correct. 

Mr. Salinger. In 1955, the parcel of land was sold to a San Francisco 
attorney, Vladimir Viicinish. He actually bought it for 3 people, 1, 
the Operating Engineers' Union, Local No. 3 ; 2, a realty company ; and, 
3, a client of'his who turned around and leased their part of it to the 
Lowry Paving Co. 

The Lowry Paving Co. does not now own any part of that parcel, 
but they have an option to buy it within 5 years of the original pur- 
chase from this particular client of Mr. Vucinish. That is the history 
of that particular piece of land. 

Mr. Kennedy. AVliat happened so far as the Operating Engineers 
are concerned ? 

Mr. Salinger. The Operating Engineers Union bought the land 
on February 5, 1955, and they held it until October 15, 1956. During 
that time, there were two tax payments made on the land. One was 
made by the union, and a second tax payment was made by the Marshall 
Development Co., and the union reimbursed the Marshall Development 
Co. With the original price and these two tax payments, Mr, Swanson 
purchased this piece of land on October 15, 1956, for $11,318.06, with a 
cashier's check which he purchased from the $17,000 he received from 
the sale of parcel No. 3 of the Stockton property. 

TESTIMONY OF VICTOH S. SWANSON— Resumed 

Mr. Swanson. I have no knowledge of the Marshall Development 
Co. paying any tax. 

He is here. You better ask him. 

Mr. Kennedy. The record will speak for itself. Your answer speaks 
for itself. 

Mr. Swanson. That is all right. 

Mr. Kennedy. Now I want to ask you about another matter that 
has been testified to before the committee, and that is regarding the 
$10,000 to fight the "construction stiffs." 

Senator Mundt. Before you go into that, Mr. Counsel, I have one 
more question. Do I understand, Mr. Swanson, that the union holds 
an option from you to purcliase this property back for the amount 
that you paid for it, which was $11,000, plus 2 tax payments ? 

Mr. Swanson. That is correct. 

Senator Mundt. And the option is still effective ? 

Mr. Swanson. It was 2 years fi-om after the time that I paid for 
it, in the event that they want to build a branch office there, and if 
the union will produce the records — they have them because it was 
attached to the check. 

Senator Mundt. Let me inquire from Mr. Salinger whether he came 
across that record. 

Mr. Salinger. We have not found such option. 

Senator Mundt. Who would have the custody of that option? 
Where could we find it ? This is rather important to you, to confirm 
your statement, if it can be confirmed. Where would that option be ? 

Mr. Swanson. The option should be attached to the canceled check 
in that office. However, I have a copy of it and can get it. I have 
a copy of it, exactly. 

Senator Mundt. Would you supply that to the committee ? 



7720 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. SwANSON. I will be very liappy to do it. I think we probably 
have it with us here. If we haven't— yes ; here it is. 

This is an exact duplicate copy which was attached. 

(The document was handed to the committee.) 

The Chairman. This copy may be made exhibit 71. 

(Document referred to was marked "Exhibit No. 71" for reference 
and will be found in the appendix on p. 7912.) 

Senator Mundt. Mr. Chairman, this is dated November 15, 1956. 
Ostensibly it is signed by Victor S. Swanson, this just being a copy 
without a signature. 

To the executive board of local union No. 3 

On February 5, 1955, local union No. 3 bought a piece of land in San Mateo 
County, through the California & Pacific Title Co., for approximately $11,115.20. 
At that time it was the intention of the executive board to build a branch oflSce 
on this land. However, shortly after the property was purchased, it was de- 
cided that it would cost a great deal more than the original price to fill the land 
with dirt in order to make it suitable to build on. Since the executive Board 
felt that it might have been an unwise recommendation on my part to buy this 
property, and that the union should not build on the said property, I now ofifer 
to buy the property myself for exactly the same price as what the union paid, 
plus taxes, a total of $11,318.06, with the understanding that I will keep the 
said property for not less than 2 years, and should the union wish to buy it back 
for the same purpose it was originally purchased, I will sell it back to the 
union for exactly the same price I paid, plus taxes, and 4 percent interest on 
the money 1 invest. 

I think it is rather important that we try to find whether there is 
in fact such a copy in the files dated the same as this item, because, 
theoretically, this could have been prepared, of course, yesterday or 
any other time. We have to get the original document to confirm 
that this is a valid copy. 

Mr. Kennedy. Senator, could I ask you, looking at that copy, is 
it an agreement ? Is it signed by any officials of the union, showing 
that they agreed to this ? 

Senator Mundt. There are no signatures of any kind on this. At 
the bottom it says: Fraternally, Victor S. Swanson. That is not 
signed. There is an E. T. on this. It is supposed to be the stenog- 
rapher, I presume. 

WhoisE.T.? 

Mr. Swanson. That is my private secretary who wrote it. She 
wrote both of them. Ethel Thomasello. 

Senator Mundt. Would she be available if we wanted to call her? 

Mr. Swanson. Yes. I guess she is still in the office. I have not 
been there for a long time. I believe she is in the office. But she 
lives in San Francisco. You can contact her. 

Senator Mundt. I think we should contact her in some way to find 
out, because it cannot be accepted as an exhibit, I presume. 

The Chairman. I made it an exhibit because he has sworn to it. 
It could be challenged, of course. 

Senator Mundt. This should be important to Mr. Swanson, to find 
out whether he can confirm it either through the testimony of E. T. or 
by finding the original document. If the burden of his main theme 
is correct, if the folks in the office are trying to undermine him, it is 
conceivable they may have tried to throw that away. You cannot tell. 

The Chairman. All right, Mr. Counsel. 

Mr. Kennedy. We had some testimony before the committee re- 
garding a national check-cashing expedition, where Mr. Vandewark 



IMPROPER ACTIVITIES I2T THE LABOR FIELD 7721 

and Mr. Clancy said thej^ toured the northwestern section of the United 
States, visiting 5 or 6 cities in order to cash 5 checks, amounting to 
$2,000 apiece; that they cashed those checks upon your instructions, 
returned, and gave you $9,500, approximately. Is that testimony 
accurate ? 

Mr. SwANSON. It is absolutely not accurate. It is a lie. 

Mr. Kennedy. Do you know anything about this $10,000 check 
that was split into 5 $2,000 checks ? 

Mr. SwANSON. Do you want me to tell you the story? Can I do 
that? Or do you want me to answer "Yes" or "No"? 

Mr. Kennedy. Tell us. 

Mr. SwANSON. This was before the international election. Mr. 
Clancy and Mr. Vandewark came into my office, and they said we 
should make a political trip, we should take a political trip, and do 
what we can to advance it. 

I said, "Well, I have no objection." 

So they figured out whereabouts they would go. They discussed 
"How much do you think it will cost?" I said, "We have to know 
what your political trip will cost." They said, "Well, it will probably 
cost a couple of thousand." I said, "Tell Mr. Garrett, discuss it with 
him, and have him make you the checks." 

That is all there was to it, unless I look at the record and tell exactly. 
So they made a trip. They were gone, I think, 8 or 9 days. I am not 
sure. I think I have it exactly at home, if I have the records. 

Then after Mr. Maloney sent his hatchetman, I mean Mr. Moore, 
after me, to get me, he was in the office, and I went in to see Mr. 
Garrett. I said, "Wliat is he doing in here ?" and he said "He is look- 
ing at checks." I said, "Where are all of these checks?" He said, 
"There is a bunch over there." 

So I took them in to my office, and the first thing I seen was five 
$2,000 checks. I had never seen them before. So I went in to Mr. 
Garrett. I said, "How about these checks?" "Well, that is what the 
boys cashed on that trip." 

Well, I got a little ambitious. I took a photostatic copy of the 
checks, and I found out that they cashed one in SanFrancisco, $2,000, 
and Mr. Clancy cashed one in Butte, another one in Minneapolis, and 
another one in Denver, and I think the other one in San Francisco. 

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

Mr. Kennedy. This is for the five $2,000 checks; is that right? 

Mr. SwANSON. Yes. Can I finish? 

Mr. Kennedy. Yes. 

Mr. SwANSON. It will just take me a second. 

So I called all of these places. I went in and called a friend by the 
name of Mr. Sanders, in Butte, Mont. I said, "Did you sign that check 
that Mr. Clancy cashed there?" He said, "Yes, he come in and he 
wanted me to go over to the bank with him to get them to cash the 
check." So he said, "I was with him." I wanted to know what hap- 
pened to the checks. I said, "Did he spend any money there?" He 
said, "No, they didn't spend a long enough time here to spend any 
money. They just wanted to cash checks." So I called another man, 
Snowshoes we call him, and I said, "Did you see Mr. Clancy and Mr. 
Vandewark there?" and he said "Yes, they put on a rush act" 



7722 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kexxedy. ISiv. Swanson, they have admitted to all of that. 
They said they only went to these areas in order to cash the checks. 
I do not think you have to go through all of that. There is no dis- 
pute on that. 

Mr. SwANSON, I thought you were interested in knowing what they 
said. 

Mr. Kennedy. They have admitted all of that. The question is 
why did you sign all of these five checks ? 

Mr. SwANsoN. I didn't sign them. I didn't know they had been 
signed for at least 5 weeks. 

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

Mr. Kennedy. Is that your signature on them ? 

Mr. SwANSoN. No, sir. 

Mr. Kennedy. It is not ? 

Mr. Swanson. It is not my signature. It is a stamp. They had 
my stamp and so did my secretary. 

Mr. Kennedy. Do you say you never signed these checks ? 

Mr. Swanson. I think I signed probably 1 in 20, if you go through 
them. 

Mr. Kennedy. The rest are all stamped ? 

Mr. Swanson. Stamped. My secretary had the stamp, and we 
wrote approximately 150 checks a week, and there was weeks and 
weeks when I wasn't even there. I don't think I signed 30 percent of 
them. That is my honest opinion. 

Mr. Kennedy. These checks all appear to have been signed by a 
stamp as far as your signature is concerned? 

Mr. Swanson. The ones I looked at were signed by the stamp, and 
I knew nothing about it until about 5 weeks afterward. I can't 
exactly testify, but if I look at the record, I can tell you exactly. 

Mr. Kennedy. But you never got that money ? 

Mr. Swanson. I never got one cent of it. 

Mr. Kennedy. So Mr. Vandewark's and Mr. Clancy's testimony 
regarding that is false ; is that right ? 

Mr. Swanson. I don't know what they testified. 

Mr. Kennedy. They testified that they turned the money over to 
you. 

Mr. Swanson. That is false. 

Mr. Kennedy. There was $10,000 that was appropriated to sup- 
port the pension fund. Do you remember the discussion about the 
pension fund ? 

Mr. Swanson. Fight the pension 

Mr. Kennedy. No ; to support the pension fund, at the convention. 
It was $10,000 to support the pension fund. 

Mr. Swanson. Well, there were several 

Mr. Ivennedy. This was to support the pension fund. 

Mr. Swanson. I don't remember to support the pension. That I 
don't recall. But whatever money was, it was accounted for by the 
officers. They made statements of what it was to be spent for. 

Mr. Kennedy. For instance, the check was used — well, let me ex- 
plain what happened. 

The check was used to buy cashier's checks for the various em- 
ployees of the union and for the officers. For you personally there 
was a check, a cashier's check, for $4,650, that was purchased with 
this $10,000 check, and it was for Victor S. Swanson. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7723 

Mr. SwANSON. I would like to see that check. I have no recollec- 
tion. Could I see that check ? 

The Chairman. Yes ; you may. 

Mr. SwANSON. I have no recollection of the check at all. 

The Chairman. The Chair presents to you a photostatic copy of 
the check, dated March 23, 1956. It is a cashier's check on the 
American Trust Co. It is made payable to you in the amomit of 
$4,650. 

(Document handed witness.) 

The CiiAiRMAiSr. I will ask you to examine the check and state if 
you identify it. 

(The witness conferred with his counsel.) 

Mr. SwANSON. That is my signature, Mr. Chairman, but I wish you 
would have the records of what it is for. I don't remember exactly 
what happened at that time. It could have been in connection with 
what we called the racketeer outfit that we were fighting. 

Mr. Kennedy. That is not it. 

(The witness conferred with his counsel.) 

Mr. SwANSON. Or it could have been m connection with — was this 
time the convention ? 

Mr. Kennedy. Yes ; there was a convention. 

Mr. SwANSON. This might have been the convention. I suppose 
there was about $70,000 spent in there, wasn't there, if you have the 
records ? I don't know. 

I agree that that is my signature. 

Mr. Kennedy. What happened was that you got your regular 
expenses. Ten thousand dollars 

Mr. SwANSON. Wait a minute. This check wasn't made out by the 
union. 

The Chairman. It is a cashier's check. You got the money. 

Mr. SwANSON. I got the money; yes. But it is probably my own 
personal check. I don't know until you show the record. 

The Chairman. We have the record here. 

Out of the $10,000 check — first, do you acknoAvledge that you re- 
ceived that check, do you, that you got the money on it ? 

Mr. SwANSON. Yes ; but let me explain. 

The Chairman. You say that is your signature ? 

Mr. SwANSON. That is my signature ; yes. 

The Chairman. All right. He identifies the check. 

That may be made exhibit No. 72. 

(Document referred to was marked "Exhibit No. 72" for reference 
and will be found in the appendix on p. 7913.) 

Mr. SwANSON. But this check was not made out by the union. 
This was my personal check, my money. 

The Chairman. We will see if it is your money. 

Now I will present you another check. That first check was dated 
March 23, 1956. I will hand you another check now in the amount 
of $10,000, This is a union check made payable to the American 
Trust Co. in the amount of $10,000. It has your name on it. 

I will ask you if you signed that one. I ask you to examine it 
and see if you identify it. 

(Document handed witness.) 

(The witness conferred with his counsel.) 



7724 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. SwANSON. Yes ; that was made out by the union. As I recol- 
lect now — this one was made out before that. The one you just 
showed me was made out previous. 

The Chairman. What is the one for that is in your hand now ? 

Mr. SwANSON. I think this had to do with the convention. I think 
we had about 4 or 5 of these, if I am not mistaken, these checks. 
Every check that was issued, there was a statement made what it was 
for, and they have that in the office if they will only produce it. 
Either they have it in the office or they should have it in the office, 
if Mr. Carman or these gentlemen did not take them out. 

The Chairman. They should be in the office, of course. 

Mr. SwANSON. They should be, but I have no records of the office. 

The Chairman. There should be in the office, of course, a record of 
these expenditures. 

Mr. SwANSON. I wish they would produce that record. 

The Chairman. We have tried to find it. That check may be made 
exhibit No. 73. 

(Document referred to was marked "Exhibit No. 73" for refer- 
ence and will be found in the appendix on p. 7914.) 

Mr. SwANSON. The record was in that office when I left. I showed 
you gentlemen certain records, and I had that kind of record for 
every check that was issued in that union for any amount. They 
have it, if they will produce it. 

Mr. Kennedy. We have verified, Mr. Chairman, that the $10,000 
check was used to purchase that cashier's check, as well as the other 
cashier's check. That $10,000 check was marked "To fight in favor 
of the pension fund." 

The Chairman. Have we established that by your proof in the 
records ? 

Mr. Salinger. This check was made out to the American Trust 
Co. You will note that the check was made out 2 days before the 
check on the union. The bank made the check out in advance, and 
when the union delivered the check, they turned over all of these 
cashier's checks, which amounted to $10,000. There were 24 cashier's 
checks, amounting to $10,000, and that 1 that Mr. Swanson is hold- 
ing in his hand is 1 of them. He actually got another one. 

Mr. Swanson. No ; I have no recollection of that. 

Mr. Kennedy. We have had some testimony regarding a $2,400 
check cashed in Las Vegas, Nev., made out to cash, and, according to 
Mr. Vandewark, the cash was turned over to you. 

The Chairman. This check to which counsel has referred is exhibit 
No. 39. It bears your signature, countersigned by Victor S. Swanson. 
It is dated December 12, 1955, in the amount of $2,400, made payable 
to cash. It is drawn on the account of your union. 

Will you examine that check and state if you identify it? 

(Document handed witness.) 

(The witness conferred with his counsel.) 

Mr. Swanson. This check was cashed in Las Vegas, Nev., by Mr. 
Lawson, and it was money — there was a convention, or I think it was 
a Western States conference, and the officers, all together, we took 
a check with us to pay the expenses there. I think in order to get it 
paid, Mr. Lawson, who happened to be a business agent for the local 12 
there, paid it. It was in Las Vegas. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7725 

I don't think I had anything; to do with cashing that. I didn't 
<5ashit. I didn't cash it. 

The Chairman. All right, did you help issue it ? 

Mr. SwANSON. Yes ; we took that check with us. I don't know who 
had it. I think it must have been the' treasurer. 

The Chairman. Did you get any of the money '? 

Mr. SwANSON. Well, we have money to spend, and we had 101 
things to spend it on at the convention. There were quite a number 
of people and their wives there. 

The Chairman. Is it not true that you had all of your expenses 
paid by the union in addition to that check ? 

Mr. SwANSON. I should say not. 

The Chairman. You say you did not have your expenses paid by 
the union in addition to that check ? 

Where did you stay at that convention ? 

Mr. SwANSON. Let me see. We stayed in Las Vegas. 

The Chairman. At what hotel.? 

Mr. SwANSON. I cannot remember the name of the hotel. 

The Chairman. Did you ever hear of the Thunderbird Hotel ? 

Mr. SwANSON. Oh, yes. 

The Chairman. Is that where you stayed ? 

Mr. SwANSON. I am not sure, but I think that probably is where we 
stayed. 

The Chairman. Were your expenses paid at the hotel by the union ? 

Mr. Swanson. The expenses ; yes. 

The Chairman. I just asked you a moment ago if your expenses at 
the hotel were not paid by the union, in addition to that check. In 
other words, were not your regular expenses at the hotel there, the 
Thunderbird Hotel, at the time of that convention, paid by the miion 
aside from that check of $2,400 ? 

Mr. SwANSON. No; that isn't true. That check as I know, as I see 
it, and as I understand it, helped to pay the expenses. There were 
a lot of expenses, there were a big gang of us there. 

The Chairman. Now, we have the hotel bill which was paid by 2 
checks, 1 for $200 and 1 for $303.90, which are exhibits 40 and 41 to 
this record. We also have, and made exhibit No. 38, the hotel accounts 
sliowing each one's hotel bill at that convention. 

Now, the liotel accounts sliow vour bill to be $45.15, which was in- 
cluded in these 2 checks, 1 for $200 and 1 for $303.90. I will ask you 
to examine those checks, exhibits 40 and 41 and state if you recognize 
those, and if you countersigned them. 

Mr. Swanson. This as I see it was expenses in addition to that. 

The Chairman. That is what I ask you a while ago, the $2,400 is in 
addition to the expenses of the hotel. 

Mr. Swanson. What is that ? 

These are the checks to the Thunderbird. As I said, it was in ad- 
dition ; yes. 

The Chairman. I thought you said a while ago it was not. 

Mr. Swanson. As I know it, that is what it was. The Secretary 
should give us an exact account of expenses that were paid there. 

The Chairman. We have the exact account, the hotel bill. We have 
your hotel bill. 



7726 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. SwANSON. I mean in addition to the hotel bill. You don't go to 
Las Vegas on a penny, when you send a whole group of people over 
there. You had better try it and see. 

The Chairman. I don't know what you spent the $2,400 for. 

Mr. SwAXSON. I don't either but it was all figured up, and there 
was a complete record in the office, if they will produce it, every cent 
that was paid out. Let them produce the record. 

The Chairman. We have searched tlie records, and we have not 
found it. 

Mr. SwANSON. But you searched them late. Evidently somebody 
got in there pretty late. 

The Chairman. I think we all got tliere a little late. Maybe we 
could have straightened this out a long time ago. 

Now I present you another check dated December 16, 1953, made 
payable to cash in the amount of $300. It is a union check, bearing 
your endorsement, as evidence that you cashed it. Will you examine 
that check and state if you identify it '^ 

(x\t this point a document was handed to the witness.) 

Mr. SwANSON. This is the Western States conference at Las Yegas. 
I think that is in 1953. 

The Chairman. Is that the same convention ? 

Mr. Sw^ANSON. It was a Western States conference. 

The Chairman. The same dates ^ 

Mr. Sw^vNSON. The same thing, yes; that is all right. My memory 
isn't clear enough what that was for, but it Avas spent in connection 
with that convention. 

The Chairman. That is another expense ? 

Mr. Sw^vNSON. And I ask again that they produce the records and 
show where these went. 

The Chairman. There are a lot of records that we cannot produce 
during the time you were handling the thing. 

Mr.SwANSON. I produced all of the records that I had in my safe, 
and they could not get them, but they got the rest of them. 

The Chairman. That will be made exhibit No. 74. 

(The document referred to was marked "Exhibit No. 74" for 
reference and will be found in the appendix on p. 7915.) 

Mr. Kennedy. It was for the expenses of the delegates? Is that 
what you are saying ? 

Mr.' SwANSoN. It would not be for anything else that I know of. 

Mr. Kennedy. Why didn't you make checks out to each one of the 
delegates and then you would have a record ? 

Mr. SwANsoN. Well, we had a record. 

Mr. Kennedy. You had no record ? 

Mr. SwANSON. The secretary was supposed to make a complete 
record when we came back, and we made a record up exactly what 
it was. 

Mr. Kennedy. The easy Avay to do it, and the sure way to do it, 
to insure it was being done, would be to make out a check and see 
that somebody was not stealing the money or using it for purposes 
of gambling in Las A^egas. 

If you just needed some extra cash, to insure that was not done 
you could make checks out to everybody ? 

Mr. SwANSON. At that time I did not think we had any crooks 
in the union and I will be telling you the truth. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7727 

Mr. Kennedy. I thought you had been fighting them all of these 
years ? 

Mr, SwANSON. I had not been fighting the members in the union, 
the officers. I never fought the officers. The delegates were the 
officers and I did not know we had any crooks in the union at that 
time. 

Mr. Kennedy. Do you think that you have some now ? 

Mr. SwANSON. I know it. 

The Chairman. I think that we all agreed on that. Let us proceed. 

Mr. Kennedy. Did you gamble yourself there in Las Vegas? 

Mr. SwANSON. I always gamble a little bit when I go to these 
places. 

Mr. Kennedy. And at the racetrack, do you go there ? 

Mr. SwANSON. I go to the racetrack once in a while, and if I did 
not I would be dead. I sat at my desk with 3 telephones and they 
rang 24 hours a day and if I hacl not got away from there once in 
a while I would have been dead a long time ago. 

INIr. Kennedy. Do you know William Kyne ? 

Mr. SwANSON. He is dead. 

Mr. Kennedy. Did you know him ? 

Mr. SwANSON. Yes, sir. 

Mr. Kennedy. What was his position ? 

Mr. SwANSON. I think he Avas manager of the Bay jMeadoAvs track, 
and he died last year. 

He was at Bay Meadows, and he never was at Tanforan. I proba- 
bly should not talk about this. JNIr. William Kyne, he owned l>ay 
Meadows track, and some eastern party owned Tanforan, as I know it. 

The Chairman. We have another check hei-e that has been made 
exhibit No. 57 in this record, dated November 7, 1950, in the amount 
of $2,500, payable to cash. It is countersigned by you, and it is charged 
here for general organizing, and it is endorsed by William Kjaie. 

I present this check to vou, and ask vou if vou can give us any 
explanation of that $2,500 r 

(At this point a document was handed to the witness.) 

Mr. SwANSON. I could not make any explanation for Mr. Kyne 
cashing any check, and I have no i-ecollection of Mr. Kyne ever cashing 
any check. If he has, I would like to have you go through all of the 
recoi'ds and find out, because I knew him for 40 years, and I never 
knew when Mr. Kyne cashed a check. 

The Chairman. What were you organizing down there, Avhen that 
check was issued ? 

Mr. SwANSON. I don't know of any organizing at that time that 
r remember now. There might have been organizing in Eureka, 
but I have no knowledge of that check being used for Mr. Kyne's 
signature. 

Again I would refer you to the records. 

The Chairman. Were you buying box seats down there at the race- 
track at that time, out of union funds ? 

Mr. SwANSON. No; I bought, personally, I think, 1 or 2 box seats, 
and we used to have people come into the office and they would go 
down there. 

I don't know if I bought any there, but I bought one at Tanforan, 
there. 



7728 IMPROPER ACTIVITIES IN THE LABOR FIELD 

The Chairman. What is that ? 

Mr. SwANSON. At Tanf oran. 

The Chairman. Did the union buy any at Tanf oran ? 

Mr. SwANSON. I think it was my check that bought it when I was 
there. But if they did buy it, they were authorized to buy it because 
it was to create friendship with people that came in, and I can't tell 
exactly, but that probably happened. 

The Chairman. We have 2 checks here that have been made ex- 
hibits, 1 for 1950, and 1 for 1951, obviously for box seats at the race- 
track at Tanf oran. Now, you said that the union did not buy them ? 

Mr. SwANSON. I did not say that, and they might have authorized 
it, but I have no recollection of them buying it. I know I bought one 
or two myself with my own money. 

Mr. Kennedy. Just on the $2,400 in Las Vegas, if you have no 
explanation on the William Kyne thing, on the $2,400 in Las Vegas, 
was that cash turned over to you ? 

Mr. SwANSON. I could not answer that. I probably got the money 
but it was distributed between the officers as they needed to pay bills 
that they owed. That is the only recollection I have. 

If I could only get the statements or the records, we would know 
exactly who got it. 

Mr. Kennedy. Let me go on to another matter. Mr. Vandewark 
said in a car-purchase deal, and you are familiar with this, that $21,000 
of union funds were used to purchase supposedly 7 cars. Actually 8 
cars were purchased with the $21,000, and on your instructions he 
turned over $2,477 in cash to you to pay for the car he purchased as 
a birthday present for his son. 

Did you receive that $2,477 from him ? 

Mr. SwANSON. He did not turn over 1 cent to me. 

Mr. Kennedy. Did you know that he was receiving a car out of 
this car-purchase deal ? 

Mr. SwANSON. I knew that he said he was going to buy a car for 
his son, and I believe he did, and he went and got a car. Have you 
got that record ? 

Mr. Kennedy. Did you know that union funds were going to be 
used to make that purchase ? 

Mr. SwANSON. I don't know anything wrong with that deal. I 
think it was absolutely legitimate so far as"l know. 

Mr. Kennedy. Did you know he was going to use union funds to 
purchase the car ? 

Mr. Swanson. I don't believe he did. I don't know if he did or 
not. But he did not give me any money, and it was my opinion he 
paid the union. 

Mr. Ivennedy. This is what happened: He used $21,000 of union 
funds to purchase 8 cars. 

Mr. SwANsoN. Look up the record and see what it was for. 

Mr. Ivennedy. I am telling you what it is for. 

The Chairman. It is already sworn to, and we can show it to you. 

Mr. Kennedy. It was $21,000 of union funds used to purchase 8 
automobiles. Do you have it so far ? 

Mr. Swanson. Yes, was there anything wrong with that ? 

Mr. Kennedy. But the union only got seven. Do you see anything 
wrong yet ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7729 

Ml*. SwANsoN. I don't know about that, because if I could see the 
records I could probably explain it to you exactly what it is. Will 
you give me the records of it ? 

Mr. Kennedy. You wrote a letter saying that you were aware of 
the fact that there were going to be seven cars purchased for the 
union, and an eighth car which was to be purchased for Mr. Vande- 
wark personally. 

Mr. SwANSON. What I recollect, Mr. Kennedy, is that we bought 
7 cars and the licenses diifered in 3 States, and we got an awful good 
buy. Mr. Vandewark told me that he went to this firm in Salt Lake 
and because we had been good customers, he gave him an awful break, 
and that is all I know. 

Mr. Kennedy. Do you know if he paid for his own car ? 

Mr. SwANSON. I don't know. 

Mr. Kennedy. You don't know ? 

Mr. SwANSON. No, and I assmne he did. 

Mr. Kennedy. Did he pay you for the automobile ? 

Mr. SwANSoN. He did not pay me a cent. 

Mr. Kennedy. He says that the union funds were used to purchase 
the automobile for himself and the other 7 automobiles, but that he 
paid you back personally $2,477 for the automobile. Is that correct ? 

Mr. SwANsoN. That is not correct. 

Mr. Kennedy. And that if the money was not returned to the vinion, 
it was your responsibility, that he had turned the money over to you ? 

Mr. Swanson. I don't know what he is talking about. He did 
not turn any money over to me. 

Mr. Kennedy. So his testimony when he states that he turned this 
money over to you is incorrect, is that right ? 

Mr. SwANSON. As far as the money is concerned, it was. 

Mr. Kennedy. Now, what about the boat ^ 

Senator Mundt. If we are going on a new topic, Mr. Counsel, I 
would like to ask a question or two about this option. We are talk- 
ing about the option that you have here of November 15, 1956. 

Mr. SwANSON. Yes, that is the option right there. 

Senator Mundt. And you told me that Ethel Thomasello wrote 
it. 

Mr. Swanson. Yes, sir. 

Senator Mundt. Is she your personal secretary ? 

Mr. Swanson. She has been my personal secretary for many years. 

Senator Mundt. For many years,? 

Mr. Swanson. For many years. 

Senator Mundt. Is she a reliable person ? 

Mr. Swanson. Well, I don't think that I would have anybody but 
what I thought she was reliable. 

Senator Mundt. At least for 20 years ? 

Mr. Swanson. I practically raised her. 

Senator Mundt. You practically raised her ? 

Mr. Swanson. She came there a very young girl and I thought 
she did a wonderful job. 

Senator Mundt. She was at least friendly to you, and she was 
not vmf riendly to you ? 

Mr. Swanson. Yes, I would say that. I think everybody was 
friendly as far as I know, then. 

21243— 58— pt. 19 15 



7730 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. I just talked to Ethel Thomasello on the tele- 
phone. She agrees that you dictated this option to her. 

Mr. SwAxsoN. Yes, that is right. 

Senator Mundt. Do you recall when you dictated it to lier? 

Mr. SwANsoN. No, I don't remember exactly. 

Senator ]Mundt. At the heading it says on top of here, "Novem- 
ber 15, 1956." Is that when you dictated it or is that just some date? 

Mr. SwANSON. I don't remember, but I made it my business to at- 
tach one of these to the warrant in the office. Whether they have it 
there or not, I don't know. 

Senator Mundt. When was the warrant made out ? 

Mr. SwANSON. I don't know. I can't recall exactly. Ethel wrote 
that because I see her initials on there, and that is all I remember. 

Senator Mundt. Did she w^rite it on the date that you gave it to 
her? 

Mr. SwANSON. When she wrote what? That I don't know; we 
had sometimes 500 letters in a day and so I can't recall all of that. 

Senator Mundt. I must confess that you have me badly confused. 
This is dated November 15, 1956. 

]\lr. Sw^vNSON. I don't know. 

Senator Mundt. I just talked to Ethel Tomasello and I said, "Did 
you make out this option?" and she said, "Yes," and I said, "And 
was it dictated by Mr. Swanson?" and she said, "Yes, but he dictated 
it to me on May 14, 1957." 

You have on here, "Option of November 15, 1956." There is 6 
months difference. 

Mr. Swanson. May I ask a question? When was that signed? 

Senator Mundt. Mine isn't signed. 

Mr. Swanson. What is the date ? 

Senator Mundt. The date you have on yours, that Mr. Scott gave 
yovi and you gave me, is "November 15, 1956." 

Mr. Swanson. Well, I suppose that is when she wrote it. 

Senator Mundt. She could not write it then when you dictated 
on May 15, 1957. 

Mr. Swanson. I don't know what she said and I only know what 

Senator Mundt. We are trying to get all of these things that dif- 
ferent people say together. 

Mr. Swanson. I can't help that. I can only talk for myself. 

Senator ]\Iundt. I want to find out, are you telling me that you 
dictated it on November 15, 1956 ? 

Mr. Swanson. I don't remember those dates very well. I would say 
that whatever date is on it was the time she wrote it. That is the- 
only thing I can say. 

Senator Munt. Would you say this under oath and let me ask you 
this question under oath : Would you tell the committee that what- 
ever date it was that you dictated it, is the date that you told her to put 
at the top of the option ? 

Mr. Swanson. Tlie only thing I know, I had it written and at- 
tached. That is all I know. 

Senator Mundt. There is no question about it being written and the 
question is, did you tell her to change the date or did you tell her to 
put the date on that as you dictated it ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7731 

Mr. SwANSON. I never told her to change any date at all in my life 
because I never told her to do anything but what was right, and 
she will tell you that if you call her up. 

Senator Mundt. I have talked with her and I just got through 
talking with her on the phone because I thought she would be able 
to substantiate your option. Instead of that it has created a great 
cloud on this option because I asked her if she remembered what date 
it was dictated and she said, "Yes," and she kept a copy of it so there 
is a copy in her possession and it was dictated on May 17, 1957. 

She said you asked her to put the date on as of November 15, 1956. 
That is why it shows here. Why did you ask her to back date it for 
6 months ? 

Mr. SwANSON. Could I ask a question of Senator Mundt: What 
difference did it make as long as it was given to the union ? This is 
a foolish question probably, but I ask those questions. What dif- 
ference does that make when it was written, as long as the union 
has it? 

Senator Mundt. That was going to depend, of course, a little bit 
on whether or not the union ever got a copy of this. A lot of other 
factors are involved, but at least it is a curious way to dictate an 
option and say, "Backdate it for 6 months." If you' have a reason- 
able explanation, maybe it doe? not make any difference, and I do 
not know, and I am asking you. 

It is your option and I am trying to help you verify the fact that 
it is a legitimate option. 

Mr. SwANSON. In my mind, it was written on the date that is on 
it. That is all I know, and I don't Imow what she said or what it 
is, but that is my opinion. 

Senator Mundt. She is preparing an affidavit stating that what 
she told me on the telephone was true and swearing to it and she 
said that she was given it on May 14, 1957, and you asked her to 
back date it to November 15, 1956. 

I asked why and she said, "You will have to ask Mr. Swanson." 
So I do not know. 

(Affidavit obtained from Ethel Tomasello was ordered printed in 
the record and is as follows ;) 

San Francisco, Calif. 

January 23, 1958. 

I, Ethel Tomasello, make the following statement voluntarily to Charles A. 
Smith, .Jr., who has identified himself as a representative of the United States 
General Accounting Office. 

On May 14, 1957, Mr. Swanson did dictate to me, and I did type, a letter 
dated November 15, 1956. (Carbon copy attached to this paper.) 

The carbon copy attached, I made for my personal files, making a notation in 
ink that the letter had been dictated on May 14, 1957. I kept this copy because 
I had misgivings concerning the discrepancy in dates. 

Mr. Swanson assured me that the contents of the letter were true, that this 
actually happened, and that he wanted the letter on file for his own protection. 

Ethel Tomasbllo. 

I have read the foregoing statement consisting of 1 page, which I have signed, 
and it is true and correct to the best of my knowledge and belief. 

Ethel Tomasello. 

Subscribed and sworn to before me, Charles A. Smith, Jr., supervisory auditor, 
General Accounting Office, under authority of section 297, Revised Statutes, as 
amended by sections 304 and 311 (e) of the Budget and Accounting Act, 1921. 
this 23d day of January 195S, at 3 : 40 p. m. 

Chables a. Smith, Jr., 
Oeneral Accounting Office. 



7732 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. SwANSON. I am not sure. I would not want to say whether 
I did or not. My memory is not that good. 

Senator Mundt. Let us assume, Mr. Swanson, that she has told the 
truth because I think that she has. You said she is reliable and you 
said she is a friend of yours, and she verifies your testimony that 
she did type the option, and so I assume she is telling the truth when 
you said "you asked her to back date it. I want to know why would 
you ask her to back date it for 6 months. 

Was there something occurring in connection with your union 
activities that this suddenly became important to you, or what reason 
was there ? 

Mr. SwANSON. I think she is reliable, and I have no recollection of 
exactly what that was. I told you a minute ago, Mr. Senator, that 
we got 500 letters, and there were days when we got that many in and 
I could not remember exactly what she did all of the time. 

Senator Mundt. We get 500 letters some days in my office but we 
never get 6 months behind in our correspondence. 

Mr. SwANSON. I don't know. 

Mr. Scott. What was the date of the purchase of that land? Is 
that the November date ? 

Senator Mundt. On February 5, 1955, Mr. Scott, it says, "Local 
union No. 3 bought a piece of land in San Mateo County." 

Mr. Kennedy. I think that he purchased it back from the union 
in October of 1956. 

Senator Mundt. He purchased it back from the union in October ? 

Mr. Scott. And this is November of 1956 ? 

Senator Mundt. That would be about a month after the purchase. 

Mr. Kennedy. And the auditors were coming in in May. 

Mr. SwANSON. I have no recollection of that. I have told you 
everything that I know about it, and since I don't remember exactly, 
I cannot state. 

Senator Mundt. Is it possible, Mr. Swanson, that the fact that Mr. 
Maloney was sending his auditors in in May might have had some 
bearing on the fact that this could have been dictated on the 14th 
of May ? 

Mr. SwANSON. I don't think so at that time ; I don't think so. So 
far as I was concerned, it had on affect on it. The argument was 
there that we had meetings and they were all executive board meet- 
ings and they were executive officers, and we discussed those things, 
and they said, "Do you recommend we buy that ground ?" and they call 
it "the holding ground," and I said, "If the union does not want it 
I will pay you what you paid for it." And so then I found out what 
it cost to fill it. I went to Mr. Lowry and he is a contractor and 
said, "What would it cost to fill that ?" 

"Well," he said, "it will cost between $11,000 and $13,000 to put it 
up and fill it." So I told the board, and I said, "Wliile you paid 
this much, you are going to have to pay more before you can build 
a building." And they said, "Well, we don't want to branch off so 
close by." 

"Since it is a good place," I said, "well, I will buy it and pay you 
exactly what you paid for it." And that is the whole story. Then I 
did say, "Well, if you want to buy it back and use it for a building or 
a branch office, you have 2 years to build," because at that time I didn't 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7733 

feel I wanted to spend money to fill it in or fill it up, and it is under 
water sometimes during the rainy season and that is my story. 

Senator Mundt. Up to a certain point, it makes a lot of sense, but 
you would have a lot more persuasiveness in this so-called option 
which is really an offer to sell rather than an option because it has no 
legal bearing, but it substantiates your story up to the point where 
you confuse us by having two different dates. 

I do not see why, unless there is some significance to it, that you 
would dictate an option or an offer to sell on the 14th of May and ask 
your secretary to backdate it to the 15th of November 1956. 

I think that you should find us some answer to that situation. 

Mr. Kennedy. I just have a couple of other things that I would like 
to cover with you, Mr. Swanson. 

As to the balloting that was done for the general election in 1956, 
according to the testimony before the committee the ballots were 
taken up to a cabin that was owned by the union. Approximately 
500 of about 2,000 to 3,000 votes were counted and you said then, 
"There is no need to count any more." The ballots were turned over 
to you and the result was that the election or official tally sheet for 
your local No. 3 shows that some of those running for office got as 
many as 16,000 votes. 

Can you explain that ? 

Mr. Swanson. I think that I can. I will try to explain it, Mr. 
Kennedy. 

First of all, may I tell you the whole story ? 

Mr. Kennedy. Just on the facts that we are discussing here. 

First, did you get the ballots ? 

Mr. Swanson. I never had the ballots, for your information. 

Mr. Kennedy. Then Mr. Garrett did not turn over the ballots to 
you? 

Mr. Swanson. He didn't turn any ballots over to me. Let me say. 
It will take a second. 

A committee of three was elected by the union to handle all the 
ballots, and it involved a lot of ballots. So about that time, Mr. 
Carman, who represented Mr. Maloney, the main repres'mtative, was 
campaigning up and down the State telling all th*», loci Is that were 
in favor of Mr. Maloney to cast all their votes, everyti ing. 

In the rear of the hall is local 39, with a members, lip of 2,700, 
approximately. They cast 800 votes, I was told by the auditing 
committee, but they were told to send in the 2,700. 

We took this up in our executive board, and the officers should 
have told you that we discussed that matter, that the only way to offset 
the way they were handling it was to cast our votes as a percentage. 

In other words, I don't know how many ballots they counted, and 
I never had the ballots. I did have the tally sheets, which I showed 
Mr. Salinger, but he said he had them so he didn't want to see them; 
is that correct ? 

Mr. Kennedy. That is all right. 

Mr. Swanson. So we discussed with them, and they said, "Well, 
you count them by a percentage so they don't outvote local 3." 

Mr. Kennedy. That is what you did ? 

Mr. Swanson. I don't know. That is what they were asked to do. 
I never saw the ballots. 



7734 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Wlio made the decision to count the votes in the 
manner you have described ? 

Mr. SwANSON. They did themselves. 

Mr. Kennedy. Who is "themselves" ? 

Mr. SwANSON. Nobody but the committee can. 

Mr. Kennedy. Wlio is the committee ? 

JNIr. SwANSON. The committee was Mr. Bordman, Mr. Metz, and 
Mr. Garrett, who I understand is here — I seen him. I think he was 
elected the chairman by the board. Nobody else had anything to do 
with them. Nobody else ever touched the ballot boxes. 

Mr. Kennedy. They are the ones who decided that when only two 
or three thousand votes were cast 

Mr. SwANSON. Oh, no. You said two or three thousand ? I think 
there were 8,000. Well, they told me, I think, that there was about 
8,000, or something like that. But I never saw the ballots. 

Mr. Kennedy. How did Mr. Turner get 16,000 votes ? 

Mr. SwANSON. A percentage. 

Mr. Kennedy. Wliat do you mean, a percentage ? 

You just figured out how many he should get if everybody voted? 

Mr. Swanson. I was told that they counted the ballots, two or three 
thousand. That is what I was told by the committee. iVnd then they 
percentage them out the approximate number of the organization, to 
offset some of these men that Maloney sent up and down the State, 
telling them how to vote. 

Mr. Ivennedy. You felt, and the committee felt, that under Ma- 
loney's direction, the other locals were stuffing the ballot boxes ? 

Mr. Swanson. No ; they were casting ballots that had not come in. 

Mr. Kennedy. Well, that is stuffing the ballot boxes. 

Mr. Swanson. That is probably it. 

Mr. Kennedy. You felt the only way to combat that 

Mr. Swanson. I didn't. That was the committee. 

Mr. Kennedy. Wait a moment. The only way to combat that, your 
group thought, was to stuff the ballot boxes, too ? 

Mr. Swanson. That is correct. 

Mr. Kennedy. So they were stuffed ? 

Mr. Swanson. I don't know what was done, but so far as the ballots, 
they handled that. 

Mr. Kennedy. You were satisfied with the way they handled it ? 

Mr. Swanson. I don't see how else it could be. 

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

Mr. Kennedy. But this election result, this tally, is not correct, is it ? 

Mr. Swanson. The board will have to say that. I never saw the 
ballots. 

Mr. Kennedy. You never saw the ballots ? 

Mr. Swanson. No ; I never had anything to do with the ballots. 

Mr. Kennedy. Did you go up with them to the cabin ? 

Mr. Swanson. I was up there. There were 5 or 6 of us up there. 

Mr. Kennedy. You were up there with the ballots ; were you not ? 

Mr. Swanson. They probably had the ballots in the car, but I wasn't 
in where they counted them. I was in another house two blocks, or 
there is a house between. I was in another cabin entirely. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7735 

Mr. Kennedy. You mean you went up there at the same time they 
went up ? 

Mr. SwANSON. I think I showed them the way up. I don't think 
any of them had been up there before. I don't remember exactly how 
the car went up there, but I know that. 

Mr. Kennedy. How did they happen to decide to go up to the cabin ? 

Mr. SwANSON. Don't ask me. They wanted to see the cabin, I guess. 

Mr. Kennedy. So you went up there to direct them ? 

Mr. SwANSON. I am not exactly sure, but I think I went to Reno 
that night. I will have to look up my records. But my private opin- 
ion is that I wasn't there. 

The Chairman. What was the necessity of taking ballots 140 miles 
away to count them ? 

Mr. SwANSON. The committee will have to answer that question. 

The Chairman. They say you directed them to take the ballots up 
there. 

Mr. SwANSON. I didn't direct them to do anything. 

The Chairman. Did you order them to do it ? 

Mr. SwANSON. I couldn't direct anybody on how to count ballots. 
It isn't within my power to do that. That is strictly their business. 
They had been elected by the members to do it, and that is their job. 

The Chairman. They all testified that you directed that it be done 
that way. 

Mr. SwANsoN. I can't help it. You only had one of them here. 

The Chairman. That isn't all they testified to. 

They said you were the boss of the union, and they had to do what 
you told them to do or lose their jobs. 

Mr. SwANSON. I heard that. 

The Chairman. How about that ? 

Mr. SwANSON. Well, I think- — what is the question? The boss? 

The Chairman. Yes. W^ere you the boss ? 

Mr. SwANSON. Senator McClellan, you can take every drop of blood 
in my veins and you will not find one for a dictatorship. You won't 
find one drop. 

The Chairman. That is a pretty strong statement in view of all 
of the evidence and the oaths that have been taken here. 

Mr. SwANSON. I appreciate that. 

The Chairman. Well, somebody in this whole thing, and maybe 
more than one, is simply coming here and perjuring themselves black 
in the face. 

You know that, do you not? 

Mr. SwANSON. I think, Senator McClellan 

The Chairman. This couldn't be a misunderstanding. Somebody 
is willfully, deliberately, perjuring themselves in the testimony they 
are giving here on these controversial issues between you and them. 

Do you agree ? 

Mr. SwANsoN. I presume they are. I wasn't in here when they 
done the talking, but I heard about it. 

Mr. Kennedy. Mr. Chairman, so far in 10 major areas that we have 
gone into, there have been 31 conflicting stories, according to a rough 
estimate by the staff. 

The Chairman. We may be making a new record. 

How much further do we have to go ? 



7736 IMPROPEK ACTIVITIES IN THE LABOR FIELD 

Senator Mundt. Are you telling us now, Mr. Swanson, that you 
went up to the cabin 

Mr. Swanson. Yes, I went up to the cabin. 

Senator Mundt. With 3 or 4 other officers of the union ? 

Mr. Swanson. I think there were 4 or 5. I don't know. 

Senator Mundt. I think they testified to four, but that is a minor 
discrepancy. They testify that they went up there with you, and to- 
gether you counted about 500 ballots, and then they decided to make 
an estimate, percentage them out, as you say, and then when they got 
back, they decided to project that percentage to include the whole 
17,000 members. 

Are you telling us that you had no part to play in that whatsoever? 

( The witness conferred with his counsel. ) 

Mr. Swanson. I didn't tell that committee. I have no recollection 
of telling the committee how they should count the ballots. 

In years gone by, they have elected committees and that was their 
job. If I was to tell them how to do it, a lot of members would 
criticize me. 

Senator Mundt. Did you see them counting the ballots in the cabin 
that night ? 

Mr. Swanson. I saw them counting some ballots ; yes, sir. 

Senator Mundt, All right. 

What did they tell you, then, about this balloting that they were 
counting ? What did they report to you ? 

You watched them count. You were not one of the counters. You 
had a committee for that. But they must have told you something. 
'Wliat did they tell you ? 

Mr. Swanson. I have no recollection of a conversation in there. I 
was staying at another cabin, and they had coffee and beeksteak, they 
had all kinds of stuff' to eat. We would go over there and eat, and 
then the other party and I would go over to the other place. 

I am not sure, and I don't want to testify to that, out I think the 
record will sliow that I, at least, went to Reno. 

Senator Mundt. Let me ask you this question, in an effort to be 
helpful. I tried to be helpful on the option deal. I do not know 
whether I helped you or hurt you, but I wanted to get the facts. Let 
me ask you this, now, in an effort to be helpful. 

Four or five of you were up to the cabin, is that right ? 

Mr. Swanson. That is correct. 

Senator Mundt. Can you give us the name of any one of them who 
will substantiate your statement about this balloting ? 

Mr. Swanson. I don't know what they will say, I will give you the 
names of tlie people that were there, but I never testify for anybody 
else. I let them do that themselves. 

Senator Mundt. It would be kind of strange, would it not, if they 
all say one thing and you say something else ? 

Mr. Swanson. I don't know how powerful the machine is directing 
that game. 

Do you know what I am talking about ? 

Senator Mundt. I do not believe I do. 

Mr. Swanson. When they reach out and they say, "You do what we 
tell you, or you will be fired tomorrow." That is when they become 
pretty powerful. That is exactly what happened there now. They 
became powerful. 



IMPROPER ACTIVITIES IN THE Lu\BOR FIELD 7737 

Senator Mundt. You agree with the witnesses on that, Mr, Swan- 
son, except one thing. They say they were intimated, but they claim 
you were the fellow that intimidated them. 

Mr. Savanson. They probably were instructed to say that, I don't 
know. The man holds and directs their jobs. That is their lifework, 
many of them. 

Senator Muxdt. Who are you talking about ? 

Mr. SwANSON, I am talking about the officers, the business agent of 
local 3 today. That is under the dominion of Mr, Maloney, He has 
his man there, Mr. Carman, and the first man that says a word, he is 
canned and fired, if he don't do what he tells him. 

Send a man out to San Francisco and you can check that. 

Senator Mundt, There is a man by the name of Mr, Carman, who, 
under the direction of Mr. Maloney, pushes these men around in doing 
their jobs ; is that correct ? 

Mr. SwANSoN, That is correct. 

Senator Mundt, What is his first name ? 

Mr, SwANSON, Red Carman, I think. 

Senator Mundt, Is it Newell J. Carman ? 

Mr. SwANSON. Carman is the man that took my place. Maloney, 
when he railroaded me out, he gives the place to him. 

Senator Mundt. Was Mr, Carman elected by the members or was 
he appointed by Mr, Maloney ? 

Mr. SwANSON, He was appointed by Maloney to take my place as 
the manager of the organization. 

Senator Mundt. And he retained the same subordinate officers that 
you had ? 

Mr. SwANSON. So far, he got rid of Mr. Doran. That is the only 
one he fired that I know of. But the rest of them are walking on 
thin ice, very, very thin ice, and they are told for. 

Senator Mundt. Mr. Garrett used to work for you, and now he 
works for the other fellow ; is that right ? 

Mr. Swanson. In the beginning, I was the one that hired Mr. Car- 
man and recommended him to get the job, years ago. In the course of 
years, he was a direct representative of Maloney and did his bidding 
until he got in. 

Senator Mundt, Okay. I was just trying to find out what is hap- 
pening. 

Is Mr, Carman going to be a witness ? 

Mr. Kennedy. Mr. Carman has been very cooperative in our in- 
vestigation. It was Mr. Carman who went out there and, I believe, 
at least found initially this Stockton land transaction as well as 
certain of these other matters, and uncovered them. He was not there 
while this was going on. He went out to investigate it. He has been 
very cooperative with us. 

Senator Mundt. Of course, we are confronted with this kind of 
hypothesis, as I see it. 

Mr. Swanson alleges that all of this is a frameup, negotiated by 
Maloney, and by Carman, planned by Maloney and executed by Car- 
man. If the hypothesis is correct, of course, he would be as coopera- 
tive as possible in trying to put the fix on Mr. Swanson. 

If the hypothesis is wrong, then certainly Mr. Swanson is deeply 
dyed in perjury this afternoon. I am trying to find out what is what. 



7738 IMPROPER ACTIVITIES IN THE K^BOR FIELD 

Mr. Swanson, you seem to be standing alone, as far as any witnesses 
are concerned. Are there not some people in your union that you 
worked with for 20 years who are sufficiently brave and courageous 
and candid and free so that they can come down here and testify to 
support your statements ? 

Mr. Scott. We did not subpena the people here. 

Senator Mundt. We will be glad to subpena them, if you have 
witnesses who will cooperate. We are trying to find out the facts. 

(The witness conferred with his counsel.) 

Mr. Swanson. I think out of the 22,000, I could bring you at least 
the 20,000. 

Senator Mundt. We do not need quite that many. This committee, 
Mr. Swanson 

Mr. SwANSON. That is an honest statement on my part. I be- 
lieve that. 

Senator Mundt. Maybe we can set your mind at rest about this 
committee. We are not out here to pin anything on you or anybody 
else. We are trying to get at the facts. Here have come a lot of 
witnesses under oath, who have all identified you as the villain in the 
broth. 

You come in and say "Not I; I made a few mistakes, but in the 
main I am proud of my record, and the villain in the broth is a fellow 
by the name of Maloney, who has a standin for him in his villainy by 
the name of Carman." You stand alone in your testimony as of now. 

There are quite a series of witnesses who have testified on the other 
side. The one witness you have mixes this up on the calendar by at 
least 6 months. 

I am asking you if you could suggest 1 or 2 or 3 people who are in 
a position to know in San Francisco, in the union or out, who will 
come in and support what you have said, as against what these other 
people have said, so that the hypothesis which you put before us can 
be substantiated by others ? 

Mr. Swanson. May I answer ? 

Senator Mundt. Surely. 

Mr. Swanson. First of all, the people who testify here are people 
who are on a heavy salary, working for local 3, and they don't want 
to give up their jobs. 

I presume that the auditor that testified here, Mr. Garrett, is, I 
would say, about an $1,100 or $1,200 a month man, or something in the 
neighborhood of that, and the business agents over that, and none of 
them want to lose their jobs. The people that were subpenaed here 
were the people that were the officers of the union that hold their jobs 
on account of taking orders. 

If you ask me, I will give you the name of 25 or 30. I would prefer 
that you go to San Francisco and hold this hearing. 

Senator Mundt. We have been to San Francisco. That is where we 
found these other witnesses. 

Mr. Swanson. That is a wonderful place. Let me cite people to 
testify. I still think that 20,000 will vote for me. 

Senator Mundt. We are not talking about voting; we are talking 
about evidence. 

Mr. Swanson. Well, testify for me. 

Senator Mundt. There are these transactions that you have been 
involved with. You have people on the Commission that used to 



IMPROPER ACTR'ITIES IX THE LABOR FIELD 7739 

serve with you, as a public utilities commissioner. You have liad 
people that you have been working with in these various transac- 
tions. There is only one way you can resolve a clash of testimony and 
find out who is lyin^, and somebody is lying. 

Well, somebody is lying, and we are trying to find out who. We 
do not want the evidence to rest against you, if you are innocent. 

Mr. Scott. Mr. Chairman, might we confer with counsel as to the 
possibility of additional witnesses ? 

The Chairman. The Chair will make this statement with respect 
to witnesses. 

If you have any witnesses that you think can contribute anything 
to this inquiry, Mr. Swanson lives in California and I am sure he has 
able counsel out there^ and if they can produce some affidavits that 
show enough factual information directed at the merits of this in- 
quiry, then they may be subpenaed. But I am not going to just 
start issuing subpenas here promiscously, for everybody out there, 
20,000 of them. I do not think 20,000 of them Imow about these 
transactions. 

But we have gone into this union and gotten the records, and gotten 
the officers of the union who know about the transactions, or who 
should know about them. I am persuaded the membership gener- 
ally did not know anything about it. 

If you get something concrete, and you want anyone to be heard 
here, who has some concrete information which goes to the merits 
of the issues that have been presented here, we will consider the sub- 
penas. But I would not want to send subpenas out there for anybody 
that might be suggested. 

Mr. SwANSON. How much time do I have to do that ? 

The Chairman. You have from now until the committee ends, so 
far as I am concerned. 

Is there anything further ? 

Mr. Kennedy. I just want to ask you about one more item. 

In the transaction on the boat, when you purchased the boat for 
$10,000 and actually paid $20,000, why did you hide the other $10,000? 

Mr. SwANSON. I didn't hide anything. We paid $20,000 for that 
boat, and it was probably worth $25,000. I think the boat has been 
worth its weight in gold to local 3 over the years. But I think the 
airplane was a big joke. I think the boat was the greatest thing 
that we ever bought, and we paid $20,000. 

The only thing is to go to see the man that owned it, and lie will 
have to tell you that. 

Mr. Kennedy. Why was the check for the boat 

Mr. Sav ANSON. I want to get this point over. 

Out of approximately $8 million worth of checks written in local 3 
over the years, I never wrote one check, and I never signed one check 
until Maloney's special representative, Mr. Mathews, had signed the 
first, and I was only a countersig-ner. 

I cannot remember about those checks, but I know, because I was 
over there once or twice and the fellow wouldn't take less than 20 
under any consideration, so I know he got $20,000. 

The Chairman. Why do you say Mr. Mathews is Mr. Maloney's 
special representative ? 



7740 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. SwANSON. He had been appointed by Mr. Maloney to represent 
him in finance over the years, in local 3, from the very day that local 3 
became local 3. 

The Chairman. What we are trying to find out here is who repre- 
sented the local people in the union. We have not found anyone yet. 

Mr. SwANsoN. I represented the working people, but he represented 
Mr. Maloney. 

The Chairman. I have not found anybody yet who apparently took 
care of their interests. 

Mr. Kennedy. The testimony is that the transaction for the extra 
$10,000 was hidden upon instructions from you. 

Mr. SwANSON. The only thing I know about that, Mr. Kennedy, is 
this 

Mr. Kennedy. Just answer, is that true or not? The record can 
stand. 

Mr. SwANSON. It is not true. 

Mr. Kennedy. It is not true, so that testimony to the contrary is 
false. 

Did you know that this extra $10,000 which was charged to the 
Stolte, Inc., was, in fact, being used for the purchase of the boat ? 

Mr. SwANSON. The executive officers — and I am not sure whether 
they were all 3 in there, or just 2 — I heard them state that "We better 
not put anything in the minutes so that the members would know we 
paid $20,000." 

That is all I know about it. Evidently the minutes were written 
that way. But I am telling you that the union paid $20,000. 

Mr. Kennedy. We know that. 

But then there was a check written to Stolte Co., supposedly to 
Stolte, Inc., though actually written for cash, which was used for the 
purchase of the boat. 

Did you know that that was being done ? 

Mr. SwANSON. No, I don't know anything about that. 

Mr. Kennedy. You did not ? 

Mr. SwANSON. No. I have no recollection. 

Mr. Kennedy. You endorsed the check. 

Mr. SwANSON. Was it cashed by Stolte ? 

Mr. Kennedy. No. 

Mr. SwANSON. I don't think so. I think they used the Stolte name, 
so that they could carry out the minutes. They had phony minutes. 

Mr. Kennedy. Your name appears as endorsements on the back of 
the checks, your name, Mathews name, and Vanderwark's name all 
ap])ear on the back of the check. 

Mr. SwANSON. I think the records will show, if you want to see 
the party, that they will tell you that they cashed the check, the owners 
of it. 

Mr. Kennedy. That what ? 

Mr. SwANsoN. I think the records will show that the check was 
cashed by the people they bought the launch from. 

Mr. Kennedy. Then you do know about this check ? 

Mr. SwANSON. I didn't Imow it. I have heard it since. I didn't 
see it. 

Mr. Kennedy. You didn't know at the time that this was being 
charged to Stolte, Inc. ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7741 

Mr. SwANSON". Not that I can recall. I know I overheard them 
talking about the minutes 

Mr. Kennedy. The minutes do not show any amount of money be- 
ing used. 

Mr. SwANSON. What? 

Mr. Kennedy. In the first place, this was not brought to the atten- 
tion of the membership. If it was brought to their attention at all, 
it was not until August 2. These checks were written on July 30. 
The membership was not consulted at all on this matter. 

Mr. SwANSON. I don't remember when it was written. I don't re- 
call that. 

Mr. Kennedy. Then there was a false entry made in the books re- 
garding the purchase of the boat. 

Mr. SwANSON. With purchasing the boat ? 

Mr. Kennedy. It was a false entry. 

Mr. SwANSON. No, I made no entries in the books. 

Mr. Kennedy. Did you have anything to do with the fact that this 
$10,000 was a false entry in the books ? It was charged to Stolte, Inc., 
when, in fact, it was used for the purchase of the boat ? 

Mr, SwANSON. I have no recollection of that, except I know we paid 
$20,000. 

Mr. Kennedy. I understand you paid $20,000, but it is how the 
transaction was handled. It was handled by fraud. 

I am trying to find out from you what you know about it. Accord- 
ing to the testimony, you were the one that instructed that it be han- 
dled in that way. 

Mr. SwANsoN. No. 

Mr. Kennedy. According to the testimony before this committee, 
nobody knew anything about the finances of the union. You say you 
didn't know anything about it. All the other officers say they didn't 
know anything about it. None of you agree on anything. 

Mr. SwANsoN. I had nothing to do with making the records or 
making checks. 

Mr. Kennedy. And tens of thousands of dollars kept pouring out 
of that union for no purpose at all each year. 

Senator Mundt. Were you not a member of the executive committee ? 

Mr. Swanson. I was a member of the executive committee, and I 
had a voice and a vote. 

Senator Mundt. What was that? 

Mr. Swanson. I had a voice and a vote in the executive conmiittee. 

Senator Mundt. A voice and a vote. You were a member of the 
committee, were you ? 

Mr. Swanson. A voice and a vote. 

Senator Mundt, Were you a member of the committee ? 

Mr. Swanson. Yes, Let me explain to you. The executive board 
is elected, and the manager's duty, because he is a manager, and an 
elected manager, by virtue of that fact, he is also a member of the exec- 
utive board. He is not elected as a member of the executive board, 
but because he is elected manager, he is a member, and he has a vote. 

Senator Mundt, So you know what transpired at the executive meet- 
ings ; you knew what happened ? 

Mr, Swanson. Well, when I was there. We had 22,000 people 
covering ?> States. I traveled considerably. I don't suppose I spent 
but one-third of the time there. 



7742 IMPROPER AcnvrriES in^ the labor field 

Senator Mundt. Did you have an executive meeting at any time 
when they talked about the boat ? 

Mr. SwANSON. I guess I did. There was nothing wrong with it 
there. 

Senator Mundt. Wliat did they say about the boat ? 

Mr. SwANSON. I don't remember that exactly. There were so many 
things, I don't remember right exactly. I can't remember. My mem- 
ory is not good enough for that. I thought my memory was better 
today than usual, but I don't remember that. My memory has been 
awful bad today, to tell you the truth. 

Senator Munut. Is it specially bad on boats ? 

Mr. SwANSON. About the boat? No, there isn't anything about 
that. I don't remember exactly. I don't think there was anything 
wrong at all ; no fraud or anything of that kind. 

Senator Mundt. Let me ask you this: As a union official, when 
you spend $20,000 for a boat, shouldn't you tell the members about it, 
and haven't they a right to know, since it is their money ? 

Mr. SwANSox. Do you mean tell all the 22,000 members ? 

Senator Mundt. Yes. It is their money, isn't it ? 

Mr. SwANSON. You are not familiar how the union was run. We 
had an executive board. They met twice a month, and sometimes 
oftener, and the secretary made a complete report of what Hie execu- 
tive board did. Then we had one business meeting every month. 
They have done away with that now, since Maloney took it over. He 
don't want no meetings now. Pie has one in the office there every 
4 months. But we had a meeting the first Saturday of every month. 
At that meeting, the secretary read everything that the executive 
board was supposed to have done, and I guess he did — I don't know 
about that — everything of what the executive board had done, and 
then a motion was made that they be approved. But whether he had 
it in there about $20,000 or not, I don't know. 

Senator Mundt. My question is. Do you agree that there should 
have been a record in the minutes that you had spent $20,000 for a 
boat? 

Mr. SwANSON. I believe that the records should contain everything 
that happens. 

Senator Mundt. That is exactly what I am asking about. 

Mr. SwANSON. And I think the secretary should have every word 
of everything that happened and kept it there, and not destroyed. 

Senator Mundt. This is not true in this case. Since it wae not 
true in this case, whose responsibility was it ? 

Mr. SwANSON. I don't remember exactly what happened there. 

Senator Mundt. Whose responsibility was it to put it down ? 

(The witness conferred with his counsel.) 

Mr. SwANSON. The secretary, the recording corresponding secretary. 
That was his duty and practically his only duty. 

Senator Mundt. Mr. Mathews ? 

Mr. SwANsoN. Mathews, C. F. Mathews, elected secretary of local 
union No. 3. 

Senator ]Mundt. Mr. Mathews wasn't a Maloney man, was he ? 

Mr. SwANSON. He represented Mr. Maloney so far as finances was 
concerned. He had to sign every check before anybody else signed it. 
No check was ever 



IMPROPER ACTTIVITIES IN THE LABOR FIELD 7743 

Senator Mundt, By that definition, you were a Maloney man. You 
had to sign the checks, too. 

J\lr. SwANSON. But after they had made them out and he had signed 
them. I had a stamp, Mr. Vandewark had a stamp, but to my knowl- 
edge Mr. Mathews never had a stamp, but he signed the checks. I 
have no knowledge of him ever having a stamp. But Mr. Vandewark, 
wlio was the treasurer, and myself, had stamps. 

Senator JVIuxdt. Was it tlie same lady we were talking about? Is 
she the one that was authorized to stamp your name on the checks? 
Ethel Thomasello ; did slie have the authority ? 

Mr. SwANSON. The secretary. Miss Thomasello, and sometimes they 
had it in the otlier office, in Mr. Vandewark's. We had three offices. 
They had it wherever they needed it. Sometimes I was gone for a 
while. We had a payday every week. 

Senator Mundt. Anyone of the three of them could stamp your 
name on a check ? 

Mr. SwANSON. As a rule, Thomasello signed it, but if she wasn't in 
and I wasn't in, some of the rest of them signed. If they didn't get 
paid every week, they got hungry. 

The Chairman. Before we recess, the Chair wishes to make this 
observation : There is clearly before the committee, in the judgment 
of the Chair, flagrant perjury. There could not be honest mistakes 
or honest differences of opinion with respect to these records and what 
has transpired. There have been five other witnesses who appeared 
here that testified on various issues, or subject matters, directly in 
conflict with the testimony given by this witness, Mr. Swanson. 
The record clearly shows, from my viewpoint, and after hearing all 
of the witnesses who are in positions to know, and who testified under 
oath with respect to these various transactions, the record clearly 
indicates at this point that there was considerable embezzlement^ 
theft, of union funds by these officers. 

I hope that the local officials out there are taking note of the record 
that is being made here, the testimony that is being adduced, that 
reflects the crimes that have been committed, and that they will give 
attention to tlieir duties in this respect. I feel there should be law 
enforcement. If we are not going to have law enforcement in this 
country, people who want to exploit honest working people through 
the medium of labor unions and dictatorial control over them, and 
the misuse of their funds, can have a field day in this country. 

There is a great responsibility, iii my judgment, upon local officials, 
whenever these crimes are exposed by this committee, to take action. 
I am hopeful that the officials in California will take note of the views 
that I am expressing, and give some attention, insofar as it is possible 
for them to do in the discharge of their duties, to these crimes being 
leflected in this testimony. 

The Chair also, with the permission of the committee, will direct 
that a transcript of this testimony be referred to the Justice Depart- 
)nent for its attention. It may have a duty in this, too, if it can estab- 
lish who is lying before this committee. It would be the duty of the 
Justice Department to prosecute such cases. 

Before I yield to my distinguished friend and member of the com- 
mittee for his statement, the Chair is going to suggest to Mr. Vande- 
wark, Mr. Chxncy, Mr. Mathews, jNIr. Doran, and Mr. Garreit, and 
also to the witness in the chair, Mr. Swanson, ihat y(;u can ii:ive until 



7744 IMPROPER AcnvrriES in' the labor field 

in the morning, by the time this committee meets in the morning, which 
will be at 11 o'clock ; when we adjourn, you will have until in the morn- 
ing to reconsider your testimony. If you want to appear back before 
the committee in the morning, be here at 11 o'clock and advise the 
committee that you want to correct your testimony before this record 
goes to the Justice Department, and before it goes to any other law 
enforcement officials who may desire a copy of it. 

I do not have very much patience. Our time is valuable. We are 
spending taxpayer's money. When people come in here and willfully 
lie, they are imposing upon this committee and their Government. If 

I can prevent it, we will not tolerate it. 

I give you all warning to think about it tonight. If you want to 
change your testimony, if you have not told the truth, and if you want 
to correct this record before it is released for the other purposes I 
have referred to, you will be given an opportunity to do so if you so 
advise the committee by 11 o'clock in the moining. 

Senator Mundt ? 

Senator Mundt. Mr, Chairman, you have been reading my mind. 
That is exactly what I was going to suggest, and for two reasons : This 
is probably the most direct conflict of testimony on material points, 
which are demonstrable in the form of evidence, that we have had. 
When this case for perjury goes to the Federal Government, I suspect 
somebody is going to go to jail ; and I think they should. 

Inasmuch as Mr. Garrett and JNIr. Clancy, and tlie other witnesses, 
came here without counsel, and without attorneys, and I see some of 
them in the room now, I suggest that they reflect ; on what they have 
said, pretty carefully tonight, and then avail themselves of the gener- 
ous opportunity presented by the Chair if they feel they should. Mr. 
Swanson has counsel here, and counsel has not attempted in any way 
to interfere with the testimony. He has simply served as sort of a 
conveyor belt with the questions. 

Mr. SwANSON. I suggest that you, sir, consult with your counsel 
tonight. 

I am not suggesting that everj^body will change, but I will say that 
somebody who has testified in this room in the last 72 hours will wind 
up in a big jail where the mosquito netting is pretty strong. This is a 
flagrant case of falsifying testimony. 

The Chairman. It is not convenient for the committee to meet in 
the morning as early as usual. We have to attend another committee 
meeting. 

For that reason, we will stand in recess until 11 o'clock in the 
morning. 

(Thereupon, at 5 : 24 p. m., the committee recessed, to reconvene at 

II a. m., Friday, January 24, 1958.) 

(Members of the select committee present at the taking of the recess 
were Senators McClellan and Mundt.) 



INVESTIGATION OF IMPROPER ACTIVITIES IN THE 
LABOR OR MANAGEMENT FIELD 



FBIDAY, JANUARY 24, 1958 

United States Senate, 
Select Committee on Improper Activities 

IN the Labor or Management Field, 

Washington, D. G. 
The select committee convened at 11 a. 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 com- 
mittee) presiding. 

Present : Senator John L. McClellan, Democrat, Arkansas ; Senator 
Irving M. Ives, Republican, New York; Senator Carl T. Curtis, Re- 
publican, Nebraska. 

Also present : Robert F. Kennedy, chief counsel ; Jerome S. Adler- 
man, chief assistant counsel ; Jack S. Balaban, a GAO investigator on 
loan to the select committee ; and Ruth Young Watt, chief clerk. 
The Chairman. The committee will come to order. 
(Members of the select committee present at the convening of the 
session were Senators McClellan and Ives. ) 

The Chairman. At the conclusion of the hearings yesterday after- 
noon, the Chair stated : 

Before I yield to my distinguished friend and member of ttie committee for his 
statement, the Chair is going to suggest to Mr. Vandewarli, Mr. Clancy, Mr. 
Mathews, Mr. Doran, and Mr. Garrett, and also to the witness in the chair, Mr. 
Swanson, that you can have until in the morning, by the time this committee 
meets in the morning, which will be at 11 o'clock ; when we adjourn, you will 
have until in the morning to reconsider your testimony. If you want to appear 
baclc before the committee in the morning, be here at 11 o'clock and advise the 
committee that you want to correct your testimony before this record goes to the 
Justice Department, and before it goes to any other law enforcement officials 
who may desire a copy of it. 

I do not have very much patience. "Our time is valuable. We are spending 
taxpayer's money. When people come in here and wilfully lie, they are imposing 
upon this committee and their Government. If I can prevent it, we will not 
tolerate it. 

I give you all warning to think about It tonight. If you want to change your 
testimony, if you have not told the truth, and if you want to correct this record 
before it is released for the other purposes I have referred to, you will be given 
an opportunity to do so if you so advise the committee by 11 o'clock in the 
morning. 

The Chair is advised that two of the witnesses wish to reappear 
and correct their testimony. Are the witnesses here, either Mr. 
Clancy, Mr. Vandewark, Mr. Mathews, Mr. Swanson, Mr. Garrett, 
or Mr. Doran ? 

Do any of you wish to correct your testimony ? 

Mr. Clancy, I see, does, and also Mr. Vandewark. 

21243— 58— pt. 19 16 7745 



7746 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Will you come around, gentlemen ? 

Will you have a seat, Mr. Clancy; you have the other seat, Mr. 
Vandewark. 

Gentlemen, you are each under oath. You have testified during 
this week under oath before this committee. I shall not repeat again 
the warning and the suggestion the Chair gave to the witnesses yes- 
terday. You have heard it restated this morning. 

Now gentlemen, we will take you one at a time. 

Mr. Clancy, you have been previously sworn, and you have testi- 
fied, and you have heard the Chair's warning to you yesterday. 

You are appearing today voluntarily to correct your testimony ; is 
that right? 

TESTIMONY OF PATRICK W. CLANCY— Resumed 

Mr. Clancy. Yes, sir. 

The Chairman. All right, proceed. 

Mr. Clancy. Mr. Chairman, in the proceedings of the other day, I 
don't remember what day it was, there was an item of a matter of 
cashier's check, or two of them. I believe I didn't see them at that 
time. I do not think I did. I am not sure just if I testified cor- 
rectly regarding those or not. 

I would like to see those two checks, and I believe they were for 
$500 each. 

The Chairman. Wliat do they relate to ? 

Mr. Clancy. They related, as I understand from the investigation, 
to the convention expenses due to the pension drive of the local 
union. 

The Chairman. That is out of the $10,000 check that was drawn 
to promote the pension fund ? 

Mr. Clancy. I believe that is correct. 

The Chairman. Is that the way you identify it ? 

Mr. Clancy. The counsel can probably correct it if it isn't right, 
but I believe it is. 

Mr. Kennedy. It is out of the pension fund. I believe when the 
witness testified the other day he said he received $400 out of the 
$10,000 check that was written to promote the pension fund. We 
asked him at that time whether he had not received more money 
than that, and he at that time said he had not. 

With Mr. Salinger's testimony, we introduced 2 of the $500 
cashier's checks which show they came from that pension fund. 

The Chairman. I present to you now two photostatic copies of 
checks, each dated March 27, 1956, and each made payable to Mr. 
V. S. Swanson, and the cashier's checks were drawn on the American 
Trust Co. One is No. 7121 and the other is 7122. 

I think that I gave you the w^rong number on one of them. 

One is 7120 and the other is 7121. 

I present these checks to you, and I ask you to examine them and 
state if vou identify them. 

Mr. Clancy. Well, Mr. Chairman, before I do, I want to correct 
that $400. 

Now, the counsel asked if that had been taken out or it was to go 
to tlie convention, I believe, for the pension. I believe that that $400 
as I recollect, was for expenses to the convention. Now, I do not 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7747 

believe that that was. It could have been, I am not sure, but I don't 
believe so. 

Mr. Kennedy. It was for the pension also. 

Mr. Clancy. I stated that I received that $400. 

Mr. Kennedy. Yes ; you did. 

Mr. Clancy. But these I do not. I will look at them. 

The Chairman. Please look at them. 

(The documents were handed to the witness.) 

Mr. Clancy. I am glad I got to look at these. I thought they were 
made out to me, Mr. Chairman. Mr. Chairman, I do not remember 
receiving these or cashing them, or endorsing them. 

Now, I would like to ask 

The Chairman. Let me ask you a question first. Do you find 
your signature on them, as endorsing them ? 

Mr. Clancy. Mr. Chairman, that is hard to say. Your committee 
found some checks out there with, I will say, one anyhow with my 
name on it, that is a forgery, and that I did not sign. A 3-year old 
boy could see the difference between my signature and that one, and 
your committee, your investigators found one to my knowledge and 
I believe that they found more that had been endorsed and signed by 
other people. 

The Chairman. Mr. Clancy, examine the endorsement signature 
on those two checks and tell me whether it is your signature or not. 

Mr. Clancy. It looks like my signature. 

The Chairman. Is it? 

Mr. Clancy. I don't know. 

The Chairman. Do you deny it is your signature ? 

Mr. Clancy. I don't deny it, but 1 would like to have that signature 
gone over inasmuch as there was forgery found on other checks. 

The Chairman. Now you came back to correct your testimony. 

Mr. Clancy. That is what I am doing. 

The Chairman. You have been presented now with the documents. 
You have the opportunity to say whether you received the money or 
you didn't. Itis just back in 1950 and it is $1,000. 

Mr. Clancy. Mr, Chairman, that is why I am in doubt. That is 
not very long back, and $1,000 is a lot of money in anybody's language, 
and I don't remember receiving this. 

The Chairman. That is all you can say about it ? 

Mr. Clancy. I don't remember receiving them or cashing them. 

The Chairman. Those checks may be made exhibits No. 75A and 
75B. 

(Documents referred to were marked "Exhibits Y5A and 75B" for 
reference, and will be found in the appendix on pp. 7016-7919.) 

The Chairman. Is there anything further in your testimony ? 

Mr. Clancy. I would like to have the signatures looked into by a 
handwriting expert, as I am not, and I have seen some awful good 
copies. 

The Chairman. I assume if a handwriting expert said they are your 
signatures, you are not in a position to deny it, because you say you 
don't know. 

Mr. Clancy. If the handwriting expert says that those are my signa- 
tures, they would be, but I still do not remember endorsing them and 
cashing them and getting any money on them. I will say that. 



7748 IMPROPER ACnVITIES IN THE LABOR FIEILD 

The Chairman. You didn't remember it the other day and so you 
haven't changed your testimony after seeing it. Is there any further 
change you want to make in your testimony ? 

Mr. Clancy. No, sir. 

The Chairman. You heard the testimony of Mr. Swanson here 
yesterday ? 

Mr. Clancy. Yes, sir. 

The Chairman And you heard his testimony directly and diametri- 
cally in conflict with yours with respect to the orders you claim that 
he gave you, and the directions he gave you. Bo you still say that 
your testimony is true and his is false ? 

Mr. Clancy. That is correct. 

The Chairman. All right. You may stand aside. 

TESTIMONY OF PORTER E. VANDEWARK— Resumed 

Mr. Yandewark. I believe in my testimony that I was questioned 
on the same $10,000 check for convention expenses in connection with 
the pension fund. I believe that I testified that I did not recall re- 
ceiving any further money. I am led to believe now that a check 
exists which I have supposedly endorsed and I would like to see 
the check. 

The Chairman. I present the check to you here, No. 7122, dated 
March 27, 1956, in the amount of $500, cashier's check, drawn to V. S. 
Swanson, on the American Trust Co. I will ask you to examine the 
check, and see if you identify it. 

Will you examine the endorsements on it also and state whether 
or not you endorsed it ? 

(A document was handed to the witness.) 

Mr. Yandewark. Yes, sir ; that is my signature on that. 

The Chairman. Did you get the money ? 

Mr. Yandewark. Yes, sir. 

The Chairman. You got the money ? 

Mr. Yandewark. Yes, sir. 

The Chairman. What was that money used for ? 

Mr. Yandewark. That, sir, I cannot recall what the money was 
used for. It was apparently cashed after I returned from the con- 
vention as it shows the paid stamp of the bank here in the last part 
of April 1956. 

I believe that is correct, looking at the punched-out stamp of the 
bank. 

The Chairman. What you actually did then after you got back 
from the convention, was to take the balance of the $10,000 and divided 
it around among the officials ; is that not correct ? 

Mr. Yandewark. It apparently looks so, sir. 

The Chairman. It looks that way ; does it not ? 

Mr. Yandewark. Yes, sir. 

The Chairman. I think the same thing would hold true with Mr. 
Clancy, don't you think '? You were in on it and you knew about it. 

Mr. Yandewark. I have no way of knowing, sir. I know that I 
received this, and this is my endorsement. 

The Chairman. Are there any other corrections you wish to make 
in your testimony ? 

Mr. Yandewark. No, sir. 



IMPROPER ACTrV'ITIES IN THE LABOR FIELD 7749 

The Chairman. You have heard Mr. Swanson's testimony, have 
you? 

Mr. Vandewark. Yes, sir. 

The Chairman. And you heard him testify ? 

Mr. Vandewark. Yes, sir. 

The CHAiRiiAN. And you know that the testimony that he gave and 
the testimony that you have given cannot possibly be reconciled so as 
to make both of you speak the truth. Do you not ? 

Mr. Vandewark. That is correct. 

The Chairman. One of you has testified falsely before this com- 
mittee. Do you recognize that? 

Mr. Vandewark. Yes, sir ; I do. 

The Chairman. With that recognition in mind, you still do not wish 
to change your testimony ? 

Mr. Vandewark. I do not, sir. 

The Chairman. Are there any other questions ? 

Mr. Kennedy. I just have one question. Just on the question of 
the automobile transaction, the $21,000, you don't want to change your 
testimony on that? 

Mr. Vandewark. No, sir. 

Mr. Kennedy. And you say you won the money where, again ? 

Mr. Vandewark. At Harold's Club in Eeno. 

Mr. Kennedy. Who was with you when you won the money ? 

Mr. Vandewark. My wife. 

Mr. Kennedy. Where did you stay that night ? 

Mr. Vandewark. I stayed at the Mapes Hotel, and she came up in 
the afternoon and returned that evening on United Airlines. 

Mr. Kennedy. She returned on United Airlines? 

Mr. Vandewark. That is correct. 

Mr. I^NNEDY. That evening, back to San Francisco ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. Was Mr. Swanson there with you? 

Mr. Vandewark. Not that I recall, sir. 

Mr. Kennedy. Just the two of you were there ? 

Mr. Vandewark. Yes, sir. 

Mr. Kennedy. We checked with the man who did the ordering of the 
cars, in Salt Lake, a Mr. Bowman. Is he the one who handled the car 
transaction ? 

Mr. Vandewark. I believe, yes, sir, that he did. I believe that he 
signed the car purchase orders. 

Mr. Kennedy. He says that was not done until March 5 of that year. 
You withdrew the money from the bank for the purchase of the cars, 
as I understand your testimony, on February 14. * 

Mr. Vandewark. That is right. 

Mr. ICJENNEDY. All right. Thank you. 

The Chairman. All right, you may stand aside. 

This check will be made exhibit No. 76. 

(Document referred to was marked "Exhibit No. 76" for reference 
and will be found in the appendix on pp. 7920-7921.) 

The Chairman. The Chair will make this announcement : 

Tentatively at least, this concludes this phase of the hearing into 
local 3. We are now going into another area, into the area of New 
York and Philadelphia, and the testimony in those areas will be di- 



7750 IMPROPER ACTIVITIES IN THE LABOR FIELD 

reeled primarily to another kind of domination and control of miion 
affairs. It is in the same international union. 

We have observed from the testimony thus far, with respect to 
local No. 3, that there was such domination of it by either one officer 
or a combination of officers of the union that the union dues, and the 
union funds, pension and welfare funds could be manipulated, mis- 
used, misappropriated, and expended for nonunion purposes, and 
transactions went on where the union officials profited at the expense 
and to the detriment of the union members. 

In this area we are going into now, we will be dealing with other 
locals, and we will show primarily in those areas the lack of demo- 
cratic processes, and the complete domination of unions by the manip- 
ulation of elections, and by the holding of members to be ineligible 
to vote; and thus the union members again were deprived of their 
rights and have been under a state of subjection to a rule that was 
autocratic and not in conformity with ethical practices. 

All right, Mr. Counsel, call your first witness. 

(At this point the following members were present: Senators Mc- 
Clellan and Ives.) 

Mr. Kennedy. The witnesses, Mr. Chairman, will be Messrs. Peter 
Batalias, Lou Wilkens, Garrett Nagle, Charles Skura, John DeKoning, 
and William Wilkens. 

May we have them all at one time? 

The Chairman. Gentlemen, all of you come forward. 

Gentlemen, each of 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. Batalias. I do. 

Mr. L. WiLiiENS. I do. 

Mr. Nagle. I do. 

Mr. Skura. I do. 

Mr. DeKoning. I do. 

TESTIMONY OF LOUIS WILKENS, PETER BATALIAS, CHARLES 
SKURA, GARRETT NAGLE, AND JOHN DeKONING 

Mr. L. Wilkens. Bill Wilkens is absent for the moment. 

He went downstairs for a moment. 

The Chairman, Gentlemen, give your names, starting with you on 
my left in front. 

Mr. L. Wilkens. Louis Wilkens. 

Mr. Batalias, I am Peter Batalias. 

The Chairman, The gentleman on my left in the rear? 

Mr. Skura. Charles Skura, 

The Chairman, The gentleman in the center? 

Mr, Nagle. Garrett Nagle. 

The Chairman. The gentleman on my right ? 

Mr. DeKoning. John DeKoning. 

The Chairman. Beginning with you, Mr. Wilkens; state your 
name, your place of residence, and your business or occupation. 

Mr. L. Wilkens. Louis Wilkens, 50 Bayview Avenue, East Islip. 
My occupation is master mechanic. 

The Chairman. Mr. Batalias ? 



IMPROPER ACTIVITIES EST THE LABOR FIELD 7751 

Mr. Batalias. I am Peter Batalias. I reside at 199 Post Avenue, 
Westisurj^, Lon^ Island, and I am operating encjineers. 

Mr. Skura. Charles Skura, 730 Charter Court, Uniondale, Long 
Island, operatinp; engineer. 

The Chairman. Mr.Nagle? 

Mr. Nagle. Garrett Nagle, 17 Warwick Avenue, Copake, Long Is- 
land, operating engineer. 

Mr. DeKoning. John DeKoning, 125 West 18th Street, Deer Park, 
Lon<x Island, N. Y., operating engineer. 

The Chairman. Gentlemen, I believe each of you testified, did you 
not, at an executive session of this committee in New York City some 
time last spring? 

Mr. L. WiLKENS. Yes, sir. 

Mr. Batalias. Yes, sir. 

Mr. Nagle. Yes, sir. 

Mr. Skura. Yes, sir. 

Mr. DeKoning. Yes, sir. 

The Chairman. I^t the record show the answer is in the affirmative 
from each of the witnesses. 

Mr. Counsel , you may proceed. 

Mr. Kennedy. Mr. Wilkins, I will address my questions to you, 
initially. You and the other gentlemen with you are all members 
of Local 138 of the Operating Engineers of Long Island ? 

Mr. L. WiLKENS. We are. 

Mr. Kennedy. And you personally have been a member of that 
union for how long ? 

Mr. L. WiLKENS. Since its inception, in 1933. 

Mr. Kennedy. Could you tell us a little bit about the background 
and history of that local, what kind of work you do out on Long Is- 
land, what your group does, and a little bit about the background 
of the local itself ? 

Mr. L. WiLKENS. The local was established in 1933, and I was its 
first president. Do you want me to give the history of the organ- 
ization? 

Mr. Kennedy. Give us a history of the organization, from its in- 
ception. You were the first persident. Approximately how many 
members di d it have at that time ? 

Mr. L. WiLKENS. At that time it had approximately, I believe it 
was, around 18 or 19 members, when we first got the charter. 

Mr. Kennedy. You were one of those who established the local ? 

Mr. L. WiLKENS. That is right. 

Mr. Kennedy. Were you the top official of the local ? 

Mr. L. WiLKENS. I was the president at the time, but Bill De- 
Koning was elected the business manager at the time. 

Mr. Kennedy. Wlio was that ? 

Mr, L. WiLKENS. William C. DeKoning, Sr. 

Mr. Kennedy. He was the business manager? 

Mr. L. WiEKENS. He was the business manager. He did all the con- 
tacting with all the contractors, and union officials in Washington, 
and so forth. 

In 1935 — during that time of the 2 years — we ran into little dif- 
ficulties for the simple reason that they wanted me to sign checks where 
there was no vouchers for them, by the members. In other words. 



7752 IMPROPER ACTIVITIES EST THE LABOR FIELD 



signed for them. 

Mr. Kennedy. And they had not obtained the approval of the 
membership for th'em? 

Mr. L. WiLKENS. That is right. 

Mr. Kenedy. Who wanted you to sign those checks ? 

Mr. L. Wilkens. Mr. DeKoning. 

Mr. Kennedy. And you refused to sign the checks ? 

Mr. L. Wilkens. That is right. In 1935, they put a man against 
me, a man by the name of Jim Brennan, and, oi course, he won the 
election, in 1935. 

From then on, the organization went along until 1938, I believe it 
was 1938, when there was a lawsuit involving some contractors and 
Mr. DeKoning in some kind of fixing up of price rigging or some- 
thing. 

Mr. Kennedy. There was some collusion, between certain of the 
contractors ? 

Mr. L. Wilkens. It never was proven, but there was indictments on 
it at the time. It never was proven. We went along until 1949 
when Jim Brennan and Bill DeKoning, Sr., had a falling out, and we 
had an election. That was an election year. It was either 1948 or 
1949. There was really no opposition for the simple reason that 
they eliminated Jim Brennan by a technicality. They claimed that 
he did not put in his voucher that he was going to run as president 
again. So there was only one man running, and that was Bill De- 
Koning, Sr. In 1950 we had the misfortune of our financial secre- 
tary dying. That is when Bill DeKoning, Jr., was brought back 
from upstate. He was upstate working on a job. He was brought 
back and he was appointed financial secretary and business repre- 
sentative to take Bob Lawrence's place. 

Mr. Kenedy. They did not take anybody out of the local on Long 
Island? The took Mr. 

Mr. L. Wilkens. William C. DeKoning, Jr., had a membership 
card, but he was workhig on jobs upstate. 

Mr. Kennedy. Had he been active in the local up until then ? 

Mr. L. Wilkens. No; not a bit. He had not attended a meeting 
in — I don't know how long. 

Mr. Kennedy. He was made financial secretary of the union ? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. His predecessor died ? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. Was there anything attached to his death? Were 
there any facts associated with his death that made it unusual? 

Mr. L. Wilkens. Well, I don't know what was bothering the man. 
The man did commit suicide. 

Mr. Kennedy. And young DeKoning took over ? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. Had he had any experience handling finances prior 
to that time ? 

Mr. L. Wilkens. Not to the best of my knowledge he hadn't had. 

Mr. Kennedy. And he was appointed, not elected, to that position ? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. Appointed by his father ? 



IMPROPER ACTIVmES IN THE LABOR FIELD 7753 

Mr. L. WiLKEXs. Well, appointed by his father through the execu- 
tive board. 

Mr. Keistnedy. That brings us to 1950. Will you go on ? 

Mr. L, WiLKENS. In 1952, William C. DeKoning, Sr., decided he 
was going to retire. He was made emeritus, and his son was appointed 
again to be president and business manager. 

Mr. Kennedy. He decided he was going to retire, and he appointed 
his son, through the executive board, to be president and general 
manager of the local ? 

Mr. L. WiLKENS. That is right. 

Mr. Kennedy. He passed the local on to his son ? 

Mr. L. Wilkens. That is riglit. 

Then in 1953 there was some indictments but against William C. 
DeKoning, Sr., and William C. DeKoning, Jr., and several of the 
members. 

Mr. Kennedy. Approximately how many indictments were there? 

Mr. L. Wilkens. I believe there was around 100. 

Mr. Kennedy. Around 100 indictments for what type of crime? 
About 100 different counts ? 

Mr. L. Wilkens. About 100 different types, but it was all extor- 
tion and coercion. I don't recall all of them. 

Mr. Kennedy. Extortion from contractors and collusion with con- 
tractors ? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. And embezzlement of funds; was that included? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. Wliat happened ? 

Mr. L. Wilkens. Well, William C. DeKoning had quite a control 
in a raceway. He had organized the raceway workers, plus being the 
business manager of local 138. 

Mr. Kennedy. '\^Tiat do you mean the raceway workers ? 

Mr. L. Wilkens, Well, I don't know. They have different names 
for them. There are different ones. 

Mr. Kennedy. Is it the employees out at the racetrack? 

Mr. L. Wilkens. People that work at the trotting track there, 
Eoosevelt Field. 

Mr. Kennedy. And he had control of that group of employees also ? 

Mr. L. Wilkens. That is right. He did. 

Mr. Kennedy. Those employees were members of 138? 

Mr. L, Wilkens. Quite a few af them was members of local 138, 
and also of — well, I believe there are 2 different unions in the raceway, 
and they were members of either one or the other of those unions. 

Mr. Kennedy. And DeKoning was the head of the local ? 

Mr. L. Wilkens. That is right. 

Mr. Kennedy. That is DeKoning, senior or junior ? 

Mr. L. Wilkens. Senior. 

Mr. Kennedy. We have brought him up to the time he was indicted. 
Wliat happened after that ? 

^ Mr. L. Wilkens. That was 1953 that he was indicted. Then I be- 
lieve it was April of 1954 that he was sentenced on a plea of guilty 
from DeKoning, senior, and DeKoning, junior. 

The judge gave DeKoning, junior, I believe, 2 or 3 months to clean 
up his business, end up his business, and each was told to get out of 
organized labor for 1 year. 



7754 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Wliat happened to DeKoning, senior? 

Mr. L. WiLKENS. DeKoning, senior, was sent to jail for 1 year to 
18 months, which time he served. 

Mr. Kennedy. That takes us up to the time of about 1954 ; is that 
right? 

Mr. L. WiLiiENS. That is right. 

Mr. Kennedy. Mr. Batalias, could you go on and tell us 

The Chairman. Before you go on, 1 want to swear the other witness. 
I understand the other witness has come in. Are you the other witness ? 

Mr. W. WiLKENS. Yes, sir. 

The Chairman. What is your name ? 

Mr. W. WiLKENS. William Wilkens. 

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. W. WiLKENS. I do. 

TESTIMONY OF WILLIAM WILKENS 

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

Mr. W. WiLKENS. William Wilkens, 2344 First Street, East 
Meadow, Long Island, N. Y. I am an operating engineer out of 
local 138, IJniondale, Long Island. 

The Chairman. i?hank you very much. You may remain seated. 
You may be questioned later. 

TESTIMONY OF PETER BATALIAS— Eesumed 

Mr. Kennedy. Mr. Batalias, can you tell us a little bit about the 
local ? I will ask you in a few minutes what the present control of 
the local is, but can you tell us a little bit about what the local is made 
up of ? It is split into various units. Can you tell us a little bit about 
that? 

Mr. Batalias. Local 138 is split into three branches. The first 
branch, which is the parent body, is local 138. They consist of ap- 
proximately 550 members that have the right to control and vote 
in the union affairs. Local 138-A consists of approximately 400 
members that are considered apprentices. They are not permitted to 
vote. 

A large majority of the members in this local actually perform 
engineer's work. Local 138-B consists of approximately 300 branch 
men. These are considered shop and maintenance workers. They 
also are not permitted to vote. There is a category consisting of 
approximately 500 to 1,000 men that are considered permit men. They 
are not allowed to attend 

The Chairman, How many ? 

Mr. Batalias. It varies with the season. It varies between 500 
and 1,000 men. 

The Chairman. Are they members of either of these locals? 

Mr. Batalias. They are members of local 138 on a permit status. 

The Chairman. What is the membership of 138? You said that 
the parent body is about 550 ? 

Mr. Batalias. That is correct. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7755 

The Chairman. And then you have a flnctnating membership or a 
permit membership of what ? 

Mr. Batalias. Between 500 to 1,000. 

The Chairman. Five hundred to 1,000. Those are not permanent 
members? They are just issued a permit so they can work? 

IMr. Batalias.' That is correct. They pay a permit fee to the local 
each week, $2.50 for the right to work. 

The Chairman. At this point, does that permit fee of $2.50 per 
week exceed, equal, or is it less than what the members pay as regular 
dues? 

Mr. Batalias. It exceeds the fee that the members pay as regular 
dues. 

The Chairman. "WTiat are the regular dues ? 

Mr. Batalias. One hundred and thirty-eight members pay $8 a 
month; 138-A members pay $8 a month; 138-B members pay $6 a 
month. 

The Chairman. So they pay at least $2 a month more than the 
regular members simply for the right to have a permit so they can 
work on the job? 

Mr. Batalias. Yes, sir ; that is correct. 

The Chairman. Thank you. Go ahead. 

Mr. Kennedy. Talking about the dues, what about the initiation 
fee ? "Wliat do members of 138 have to pay ? 

Mr. Batalias. The initiation fee for members of local 138 in $350 
an initiation fee. 

Mr. Kennedy. ^VTiatabout 138-A? 

Mr. Batalias. 138-A is $224. 

Mr. Kennedy. Andl38-B? 

Mr. Batalias. I believe it is $100. 

Mr. Kennedy. You say that members of 138-A and 138-B, and 
the permit men, are not allowed to vote in elections ? 

Mr. Batalias. They are not allowed to vote. They have no right 
whatsoever. 

Mr. Kennedy. Can you transfer from 138-B to 138-A any time 
you want ? 

Mr. Batalias. No, sir ; not when you want to. No, sir. 

Mr. Kennedy. Do they have any kind of a test that you have to 
take, and you can go in after you pass the test ? 

Mr. Batalias. It is at the discretion of the examining board; that 
is handpicked by the president and business manager. 

Mr. Kennedy. So there is no test that people can take ? 

Mr. Batalias. There is no test. 

Mr. Kennedy. What about going from 138-A into 138. Can you 
take a test to get into that ? 

Mr. Batalias. No, sir ; you cannot. 

Mr. Kennedy. Do you have to belong to the local in order to work 
on these projects out on Long Island ? 

Mr. Batalias. Yes, sir ; you do. 

Mr. Kennedy. Yet it is impossible to get into the voting section 
of the union ; is that right ? 

Mr. Batalias. It is impossible unless the examining board recom- 
mends you to the parent body. 

The CiiAiRiNiAN. May I ask if one of the tests is relationship ? 



7756 IMPROPER ACTIVITIES IN THE LABOR FIEIJ> 

Mr. Batalias. Yes, sir ; most definitely. 

The Chairman. That is, to the bosses ? 

Mr. Batalias. Yes, sir. 

The Chairman. They manage to pass the examination pretty easily ; 
do they? 

Mr. Batalias. The bosses, in fact, select a lot of the members to go 
into the parent body. 

The Chairman. All right. 

Mr. Kennedy. So approximately 500 members control this whole 
union ; is that right ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. They control the affairs, elections, and finances of 
about 2,000 people? 

Mr. Batalias. That is correct. 

Mr. ICennedy. What is the 500 made up of ? Can you tell us about 
that? 

Mr. Batalias. The five-hundred-and-some-odd members in local 
138, which is the parent and voting body, consists of approximately 
169 contractors. 

Mr. Kennedy. Do you mean employers ? 

Mr. Batalias. Employers : yes, sir. 

Mr. Kennedy. So out of the 500 that have the right to determine 
the affairs of this local, approximtely 160 or 170 of them are employ- 
ers ; is that right ? 

Mr. Batalias. Yes, sir. 

The Chairman. Do you mean that the companies, the contractors, 
that you make a contract with for your work are in the union and 
voting members ? 

Mr. Batalias. Yes, sir ; they are. 

The Chairman. Are any of them down here in the lower grades 
of A and B? 

Mr. Batalias. There might be some small owner-operators in the 
lower grade, but they are usually those that are in disfavor with the 
head of the union. 

The Chairman. They are what ? 

Mr. Batalias. They are in disfavor. In other words, if you are 
favorable to the union officials, you are elevated to the voting body. 

The Chairman. I see. So they give them a kind of a test period 
and then bring them on up ? 

Mr. Batalias. That is correct. 

The Chairman. Now you think they have about 169 contractors in 
the voting unit ? 

Mr. Batalias. As of the period in 1954 when the voting member- 
ship was examined by me, there were 169 contractors in the parent 
body. 

The Chairman. Is that number more or less now ? 

Mr. Batalias. It is probably more at this time. 

The Chairman. You would think it is not less ? 

Mr. Batalias. It is not less ; no, sir. 

The Chairman. So the 169 is, you think, a conservative number? 

Mr. Batalias. Yes, sir. 

Senator Ives. Does that include all the contractors on the island, 
Nassau and Suffolk Counties ? 

Mr. Batalias. No, sir. 



EVIPBOPER ACTIVITIES IN THE LABOR FIELD 7757 

There are some contractors that are not permitted to join our miion. 
They are outside contractors. 

Senator Ives. How many of them are there that are not allowed to 
join ? 

Mr. Batalias. I believe that there are at least six large contractors 
on Long Island that are not permitted to belong to the union and who 
are not permitted to belong to the association, the- contractors' asso- 
ciation. 

Senator Ives. Just exactly why aren't they, if all of these others are ? 

Mr. Batalias. They are not favored contractors. 

Senator Ives. They are not very good contractors ? 

Mr. Batalias. They are good contractors but not favored by the 
leadership of the union. 

Senator I\^s. They are not favored by the leadership ? 

Mr. Batalias. That is right. 

Senator Ives. I see. 

Mr. Kennedy. Now, these 169 that you found out in 1954, they were 
either employers or self-employed, is that right ? 

Mr Batalias. That is correct. 

Mr. Kennedy. Are there any of the other 350 that are in local 138, 
that choice group, are any of them connected in any way with em- 
ployers ? 

Mr. Batalias. Yes, sir. There is a category listed as master me- 
chanics, which the National Labor Eelations Board has considered 
supervisory employees. 

There are approximately 20 of them in the parent body, and, in addi- 
tion to that, there are approximately 11 superintendents employed by 
large contractors on Long Island who do not want any engineering 
equipment and yet they have voting books in 138. 

Mr. I^NNEDY. These people can all vote in the election ? 

Mr. Batalias. Yes, sir. 

Mr. I^NNEDY. That brings it up to about 200 ; is that right ? 

Mr. Batalias. That is right. 

Mr. Kennedy. Two hundred out of five hundred, about, are con- 
nected with management ? 

Mr. Batalias. They are directly connected with management. 

Mr. Kennedy. Now, of the other 200 that are left, are any of those 
closely collected or have any special jobs that would make them friendly 
disposed toward Mr. DeKoning ? 

Mr. Batalias. Yes, sir. Thete are a lot of so-called pushbutton 
jobs that are controlled by our union. 

They are favored men of the leadership. Some cannot even operate 
engineering equipment, and they carry voting books. 

There are approximately 50 of them members in local 138, the parent 
body. 

Mr. Kennedy. And are some of those members of this racetrack 
group ? 

Mr. Batalias. A large majority are also members of the Race- 
track Union, and in fact their prime, shall I say, endeavor, is that 
they are either bookies or mutual ticket agents, or gamblers, and men 
of that sort. 

Mr. Kennedy. They are also in this union and they are the ones who 
have the right to vote in these elections, while the other individuals 



7758 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Mr. Batalias. That is right. 

Mr. Kennedy. You mean that these folks who do no engineering 
work, who are not content to work on engineering jobs, that are just 
bookies or sometliing around the racetrack, are in this union and liave 
a right to vote ? 

Mr. Batalias. Yes, sir; they cover pushbutton jobs. In other 
words, in our trade there are compressors, vibrators, and pumps that 
are automatic machines, you push a button and they run all day 
long. You j ust get them started. 

Mr. Kennedy. These men do not actually push the button, but they 
stand thei-e and watch it pushed, is that right ? 

Mr. Batalias. Usually they arrive on the job and see the machine 
gets started and then tliey go somewliere else. 

Mr. Kennedy. Then they go about their racetrack business ? 

Mr. Batalias. Or other things. 

The Chairman. I see. 

Mr. Kennedy. Now, are there any people in the category 138A or 
138B who have all the skill and experience so that they should be in 
local 138 itself ? 

Mr. Batalias. I believe that there are more men eligible in the sub- 
sidiary locals to operate engineering equipment, and are entitled to 
engineering books, but they do not have them. 

Mr. Kennedy. There are more in the other groups than in the 
parent local ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. That are competent and skilled engiiieers and able 
to operate engineering equipment? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. More that do not have a right to vote than there are 
of the 550 that do have the right to vote ? 

Mr. Batalias. That is right. 

Mr. Kennedy. The control of the union would not allow these other 
people to get in ; is that right? 

Mr. Bataijas. That is right. 

Mr. Kennedy. Now, I believe you have one of your group that is in 
that kind of a situation. 

Mr. Batalias. Yes. Garrett Nagle is one of those individuals. 

Mr. Kennedy. Mr. Nagle, would you tell us what your situation is 
as far as you are concerned? 

The Chairman. Let me ask w^hich one of the unions are you in, 
Mr. Batalias? 

Mr. Batalias. I went directly into the engineers parent body from a 
permit status to the engineer class. I never went through the sub- 
sidiary locals. 

The Chairman. How long ago was that? 

Mr. Batalias. This was in 1952, and it was done by the master 
mechanic for Hendrickson Bros. 

The Chairman. You are a member of the parent local ? 

Mr. Batalias. That is correct. 

The Chairman. To the other gentleman, Mr. Wilkens, which one 
are you a member of, the parent local ? 

Mr. L. Wilkens. The parent local ; yes. 

Mr. Kennedy. Before we get to Mr. Nagle, how were you able to 
go, Mr. Batalias, from the permit status into the parent group? 



EVIPROPER ACTIVITIES IN THE LABOR FIELD 7759 

Mr. BatxVlias. T opposed Mr. DeKoning's tactics, and, in fact, I was 
in business for myself. I was employed on a project, on a Govern- 
ment project, and an attempt was made to pay me olf. 

Mr. Kennedy. How do you mean that ? 

Mr. Batalias. I was on a permit fee and they were going to force 
me olf the job because it was a slack season coming up. 

The master mechanic for the contractor I worked for advised me to 
attend a ]\Iule Club affair and go down and buy the tickets and I 
would be able to stay on the job and I would be able to get a book. 

I started going to these aft'airs, and I started buying either 4 or 6 
tickets, whatever was sent to me. 

And then in the spring of 1953 I was sent to work, to Hendrickson 
Bros. The master mechanic for Hendrickson Bros, took a liking to me 
and I had learned to keep my mouth shut, and he influenced the 
leadership of the local union to take me into the parent body. 

JMr. Kennedy, It was favoritism as far as your getting into the 
organization ? 

Mr. Batalias. Yes, definitely favoritism. 

Mr. Kennedy. Hendrickson was one of the favorite contractors? 

Mr. Batalias. He is the largest contractor on Long Island, 

Mr, Ivennedy. And through the master mechanic that worked out 
there, you were given this favored position and the favored treatment 
and brought right from tlie permit status into the parent body ? 

Mr, Batalias. That is right. 

The Chairman. That was over all of these others ? 

Mr. Batalias. Over all of the men, and in fact at the time I was 1 of 
4 tliat was taken directly into the parent body. 

Mr, Kennedy, You did not have to take any test or anything else ? 

Mr, Batalias, No test whatsoever. 

Mr, Ivennedy. The man just liked you and you were able to get in? 

Mr. Batall4S. Yes, sir. 

Mr. Kennedy, What happened to you, Mr, Nagle ? 

Mr. Nagle, I am a member of the A local, and I have been a mem- 
ber of the A local since June of 1945, It has just been impossible 
for me to transfer over into the engineers to get a vote or to be allowed 
to run for office in that group, 

Mr. Kennedy, They have just not permitted you to come into 
local 138? 

Mr, Nagle, That is true, but I have made applications, several of 
them. Two were made orally to Mr, Verner Sofield, requesting I be 
allowed to make application to transfer into the engineers. He re- 
fused and told me ''You don't need an engineer's book. You go out 
and work, and we will run the local," 

Mr. Kennedy. Who is Mr, Sofield ? 

Mr, Nagle. Mr. Sofield is the recording corresponding secretary. 

Mr. Kennedy, And he just said that they could not take you into 
local 138 ? 

Mr. Nagle. He would not allow me to go before the executive 
board, to fill out the application. 

Mr. Kennedy, You could not even get into make a formal appli- 
cation ? 

Mr. Nagle. That is true. 

Mr. Kennedy. You have been in this local 138 A for 9 years ? 

Mr. Nagle, It will be 13 yeai"s in June, 



7760 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. And you never have been able to get into local 138 
and vote in any of the elections ? 

Mr. Nagle. No, sir. 

Mr, Ivennedy. You have no control then over the affairs of your 
local? 

Mr, Nagle. I have nothing to say. 

Senator Ives. Mr. Chairman, I would like to ask counsel wliether 
we have the list of the names of the executive board he is talking 
about ? 

Mr. I^nnedy. Do you have it ? 

Mr. Batalias. Do you want the names? 

The executive board consists of the line officers, which is approxi- 
mately 7, and then to the best of my knowledge, there are 3 master 
mechanics, and one individual from a sand pit concern in East North- 
port. The members of the executive board are usually kept a secret, 
away from the membership, and they don't ever really know who is 
on the executive board. 

Senator Ives. Do you know who is on it ? 

Mr. Batalias. I know that the officers, because of the constitu- 
tion, are members of the executive board, and I also know that two 
business representatives are members of the executive board. 

Senator Ives. Can you name those so that we will have those in 
the record ? 

Mr. Batalias. William DeKoning, Jr., is president, Charles Ba- 
con is vice president. Verner Sofield is recording corresponding Sec- 
retary. The financial secretary is Joseph Bell. 

There is a guard and a conductor and I don't know their names, 
and they are also members of the executive board. Jack Gunning, 
a business representative, is a member of the executive board, and a 
Girard Douglas, The other individual I do not know his name. 

Senator Ives. You have given us the majority of them. 

Mr. Batalias. Yes, sir. 

Senator Ives. Wlio picks the executive board, the president, you 
say? 

Mr. Batalias. The president. . 

Senator Ives. He does it himself ? 

Mr. Batalias. Yes, sir. Those are the ones not officers in the 
union. 

Senator Ives. Well, does he pick officers of the union, too? 

Mr. Batallvs. No, sir, the officers are elected. Up until this time, 
there has been no opposition to them. 

Senator Ives. How are they elected? That is another interesting 
thing. 

Mr. Batalias. The only election I ever attended 

Senator Ives. How long ago was that ? 

Mr, Batalias. In 1954, in June of 1954, it was a shout vote. 

Senator Ives. Wliat is that ? 

Mr. Batalias. A shout vote, 
was no opposition to them, and they were just shouted. 

Senator Ives. You had no ballots cast of any kind! 

]\lr. Batalias. No ballots whatsoever. 

Senator Ives. No secret ballot of any kind ? 

Mr. Batalias. No secret ballot. 

Senator Ives. A voice vote entirely ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7761 

Mr. Batalias. Yes, sir. 

Senator Ives. Was there any opposition ? 

Mr. Batalias. Up to this time there has never been any opposition. 

Senator Ives. Thank you. 

INIr. Kennedy. While you are on that, why don't you tell us about 
how the elections were handled since Mr. DeKoning, senior, went to 
jail. Would you recite what happened and what your personal ex- 
perience has been ? 

Mr. Batalias. In May of 1954, the nominations were made for 
the regular slate of officers. AVilliam DeKoning, Jr., at that time, 
the president, explained to the membership that in accordance with 
his probation, he would have to resign and he asked that Charles 
Britton be nominated to the presidency. After that, the remaining 
officers were also nominated. 

In June of 1954, the recording corresponding secretary read off 
the suite of officers with the exception of John DeKoning, as business 
agenr. 

Mr. Kennedy. Jolin DeKoning is the gentleman sitting beside you ; 
is that right? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. He is one of your group ? 

Mr. Batalias. That is right. 

Mr. Kennedy. Is he any relation to Mr. William DeKoning? 

Mr. Batalias. Pie is a cousin of William DeKoning, Jr. 

Mr. Kennedy. But he is part of your group that is opposing Wil- 
liam DeKoning, senior, and junior? 

Mr. Batalias. That is right. 

Mr. Kennedy. He was an officer ? 

Mr. Batalias. He was a business agent. 

Mr. Kennedy. A business agent ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. And there are three business agents working under 
the business manager ; is that correct ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. He had been an officer before ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. And the election in May was supposed to return the 
same officers to power ? 

Mr. Batalias. The nominations in May were to return the same of- 
ficers to power with the exception of William DeKoning, Jr., who had 
to resign. 

Mr. Kennedy. And Charles Britton was going to succeed him? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. During this period of time, did John DeKoning join 
your group in opposition to William DeKoning? 

Mr. Batalias. I don't believe there was a group at that time. It 
was just a situation that arose at the time. 

Mr. Kennedy. But he had started to oppose William DeKoning? 

Mr. Batalias. Yes, sir. At the June meeting he got up and asked 
why his name was left off the slate. The recording corresponding sec- 
retaiy explained to him that the business agent was an appointed job, 
and that he could not be elected to office. One of the members of the 

21243— 58— pt. 19 17 



7762 IMPROPER ACTIVITIES IN THE LABOR FIELD 

local, and there was a bit of a hassel, made a nomination that the busi- 
ness agent be made an elective position. It was carried unanimously . 

The name of John DeKoning was then nominated to be elected to 
the business agent's office. The election was had verbally, a shout 
vote, and John DeKoning was elected to the business agent's position, 
by a majority. The only one opposing it was Verner Sofield, the 
recording corresponding secretary. 

John DeKoning and the other officers were then sworn in. 

Mr. IvENNEDY. What happened after that, in September of 1954? 

Mr. Batalias. At the next meeting in September of 1954 

Mr. IvENNEDY. That is 3 months later ? 

Mr. Batalias. Yes, there were no meetings in July or August but 
there was a lot doing at that time, because of the opposition that 
arose to John DeKoning being elected to the business agent's position. 
At the September 1954 meeting, the minutes of the June meeting were 
read off. The name and everything in accordance with what had 
happened at the June meeting was omitted from the minutes. 

Mr. William DeKoning, Jr., who was then on probation, and barred 
from engaging in union activities, was present at that meeting and 
controlled the floor for approximately 3 hours. 

Mr. Kennedy, That would be in violation of his parole. 
Mr. Batalias. Yes, sir. 

Mr. Kennedy. What did he do at this meeting ? 
Mr. Batalias. He told the membership that they could not elect 
John DeKoning to the business agent's position, that it always had 
been an appointive job, and it always will be, and that it was a vio- 
lation of the constitution. 

He had executive board minutes in his possession, and he read off 
where it had been made an appointed job and we couldn't change the 
way this union had been run. 

Mr. Nolan — he is eastern district representative — was also present. 
Mr. IvENNEDY. That is Mr. Richard Nolan, N-o-l-a-n? 
Mr. Batalias. Yes, sir. 

Mr. Kennedy. And he was representing the international at this 
meeting ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. He is a very close associate of Mr. William Maloney ; 
is that correct ? 

Mr. Batalias. Yes, sir, he is his direct representative in this area, 
in the New York area. 

At this meeting, it took us until about 1 o'clock in the morning to 
have the minutes corrected. In other words, we insisted that tliey 
were incorrect, and that Verner Sofield had lied, and Mr. DeKoning 
was cooperating with the officials and trying to maintain control of 
the union in their hands, and we insisted on a secret ballot vote. At 1 
o'clock in the morning, we accomplislied that. 

The minutes were then proved to be incorrect. In another com- 
motion that lasted until 5 o'clock in the morning, we corrected the 
minutes to read that John DeKoning had been elected a business 
agent, and that the name of Charles Britton had not been elected to 
business manager's position. 

We then attempted to elect the business manager. Richard Nolan, 
the eastern district representative, interceded and refused us the riglit 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7763 

to elect our own business manaj^er. He ordered the meeting to close, 
and he said that we would not be permitted to elect a business man- 
ager until the general president, William E. Maloney, ruled on the 
situation. 

Mr. Kennedy. So the meeting broke up about 5 a. m. ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. What happened next ? 

Mr. Batalias. This was the first instance that there had ever been 
any secret ballot votes in local 138. 

Mr. Kennedy. Now, what happened then, and what followed? 

Mr. Batalias. Following that, and in between meetings, John De- 
Koning was fired as a business agent and he was not permitted to sit 
in on executive board meetings. 

Mr. Kennedy. Who fired him as business agent ? 

Mr. Batalias. The president at that time, Charles Britton, fired 
John DeKoning. 

Mr. Ivennedy. For what reason ? 

Mr. Batalias. I believe John DeKoning can explain that better 
than myself. 

Mr. Ivennedy. You go ahead and tell your part, and then he can 
testify. 

Mr. Batalias. At the next meeting which was a stacked meet- 
ing 

Mr. Kj:nnedy. Wliat do you mean by "stacked meeting" ? 

Mr. Batalias. The doors to the meeting hall were locked. 

Mr. Ivennedy. How were they locked ? 

Mr. Batalias. There were chains across the door. Inside the union 
hall, there was approximately 150 members sitting at the front of the 
hall, and they were having a regular gab fest in there with a lot of 
boys tearing and hollering. After the doors of the meeting were 
opened, we immediately saw what was about to take place, and this 
is rather unusual, the way they did this : 

They quickly put a motion on the floor with no regular business to 
approve the actions of the executive board. They would not permit 
anybody to question the officers to find out what the actions of the 
executive board were. They refused to permit anybody to speak. 
They had a hurryup vote, and then they had another motion put on 
the floor appointing Jack Gunning as a business representative. 

Mr, Kennedy. Jack who ? 

Mr. Batalias. Jack Gunning. 

Mr. Kennedy. How do you spell his name ? 

Mr. Batalias. G-u-n-n-i-n-g. 

The way these motions were made, they gave complete authority 
to the executive board to control the union. They had a hurry up vote 
on that, and then they closed the meeting. At this meeting there was 
a large majority of contractors that appeared who had never been in 
regular attendance at meetings. 

Mr. KIennedy. So when you talk about it being stacked, you mean 
there were so many contractors there? 

Mr. Batalias. That is correct. 

Senator Ives. That is just what I was going to ask. You say there 
were about 150, plus how many at that meeting ? 

Mr. Batauas. There were approximately 500 to 800 at that meeting. 

Senator Ives. Five hundred to eight hundred at the meeting ? 



7764 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Batalias. Yes, sir. 

Senator Ia^es. Then you really had your full attendance. 

Mr. Batalias. It was a very large turnout. The two meetings in 
September and October of 1954 were the largest turnouts that local 
138 ever had. 

Senator Ives. Would you say that all of the contractors were there ? 

Mr. Batalias. To the best of my knowledge, they were told to be 
there. 

Senator Ives. Thank you. 

Mr. Kennedy. By whom ? 

Mr. Batalias. I was informed by separate individual contractors 
that had been told that they were told to be there. 

Mr. Kennedy. To be at this meeting ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. Then what occurred at the meeting ? You approved 
of the executive board actions, and did you ever find out what the execu- 
tive board actions were ? 

Mr. Batalias. Later on we found what they were, and we found 
that John DeKoning had been fired, and we also found out that the 
authority to run the local had been given into the hands of the execu- 
tive board. 

Mr. Kennedy. And you had given over to the executive board the 
little control that was still in the membership ? 

Mr. Batalias. Complete control was given to the executive board. 

Mr. Kennedy. Then what occurred, and would you tell us what 
happened ? 

Mr. Batalias. Well, at the next meeting, the officers were very 
boisterous, and tliey had beat down the rebellion, and they had their 
own way. At this meeting a motion was made by one of the master 
mechanics to give the officers their usual Christmas bonus. I got up 
on the floor to ask what the Christmas bonus was. The president told 
me it was none of my goddam business. So I insisted and tried to be 
persistent to find out what the Christmas bonuses were, and they 
ruled me out of order, and they carried a shout vote. The shout vote 
knocked down the motion that had been made. 

The Chairman. The motion was rejected ? 

Mr. Batalias. The motion was rejected. The president announced 
that the motion was carried. 

I got up and asked for a recount, and they refused to give me a 
recount, and there was a commotion took place at that time, and he 
was ruling me out of order. 

The members of the union started stamping their feet, and banging 
their chairs, and saying, "We want a recount, we want a recount." 
At that time, Verner Sofield leaned over to Charles Britton and told 
him to withdraw the motion. At the same time he threatened me. 
I wouldn't repeat the language that had been said. 

Mr. Kennedy. What did he say generally, without repeating the 
exact language ? 

Mr. Batalias. He told me I was going to get mine. 

The Chairman. You are on the air, so be careful about your lan- 
guage. But you can make it an indication. 

Mr. Batalias. He told me that I would get mine. That is all. 

Senator I^t.s. May I ask a question there? How many were at that 
meeting ? 



UVIPROPER ACTIVITIES IN THE LABOR FIELD 7765 

Mr. Batalias. I would say about 300. 

Senator I\'es. And were all of the contractors present at that meet- 
ing? 

Mr. Batalias. No, sir. 

Senator Ives. They weren't ? 

Mr. Batalias. No, sir. 

Senator Ives. I think you said at the other meeting, if I recall cor- 
rectly, there are somewhere between 600 and 800 ; is that right ? 

Mr. Batalias. That is correct. 

Senator Ives. You must have had some of the A people or B 
people. 

Mr. Batalias. Oh, yes. 

Senator Ives. They are all represented? 

Mr. Batalias. They attend the meetings and they are allowed to 
attend th6 meetings, but they just sit there, and they are not allowed 
to speak or vote. 

Senator Ives. Wait a minute. On this vote business, you say you 
have all of this shout voting, and we call them voice votes down here, 
but who knows whether they are voting or not ? 

Mr. Batall\s. No one. In fact, there are times where we have 
attempted to find out who has been doing the shouting. 

Senator Ives. Thank you. 

(At this point the following members were present: Senators 
McClellan and Ives.) 

Mr. Kennedy. After this November meeting on the Christmas 
bonus, and you were told that you were going to get yours, what 
happened after that ? 

Mr. Batalias. The business agent, Jack Gunning, with Paul 
Konya, visited me on a project in Plum Island. They told me that 
I had to change my attitude, that if I didn't change my attitude, they 
would find me in the gutter. Well, I left part of it off, but I kept 
getting threatening phone calls, I was being followed, my activities 
were being watched. Up until the January meeting, in fact just be- 
fore the January meeting, I received a phone call that told me to 
stay away from that meeting, otherwise I was going to get mine. 

Mr. Kennedy. Did you get yours ? 

Mr. Batalias. I got mine at the January meeting. 

Mr. Kennedy. Would you tell what happened there ? 

Mr. Batalias. At the January meeting, during the regular course 
of business, I got up and attempted to put a motion on the floor, to 
give the members of the A and B local the right to vote on matters 
pertaining to them. 

I was ruled out of order by Verner Sofield, who was in the chair. 
Paul Konya was standing alongside of me, and he was saying to 
some of the other strong-arm men there "All right, let's give it to them 
now," or words to that effect. When I was ruled out of order by 
Verner Sofield, he ordered that I be thrown out. The strong-arm 
men at the front of the meeting hall then carried me out and gave 
me a going over in the vestibule just before they dumped me out on 
the pavement. 

Mr. Kennedy. What did they do with you ? 

Mr. Batalias. I was knocked out. 

Mr. Kennedy. Would you describe what happened to you ? 



7766 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Batalias. I had 2 men holding each arm, and I had 2 other 
men that were hitting me in the stomach, and I had 2 men giving me 
rabbit punches in the back of the neck. 

The Chairman. Did you know them ? 

Mr. Batalias. I identified four of them ; yes, sir. 

The Chairman. Give their names ? 

Mr. Batalias. Paul Konya, George Welbourne, James Duffy, and 
another individual by the name of Edward Revere. 

The Chairman. The fifth one you did not know ? 

Mr. Batalias. At that time I did not know him ; no, sir. 

The Chairman. Have you identified them since ? 

Mr. Batalias. They have been identified since ; yes, sir. 

The Chairman. Do you know who they were? 

Mr. Batalias. Yes, sir. 

The Chair]man. Name them. 

Mr. Batall\s. Dennis Doyle and a Jack Kearns. 

The Chairman. What position do they have in the union now ? 

Mr. Batalias. Jack Kearns — I do not believe he holds any position 
in the union. Edward Revere now works in the office. He was 
nominated for the presidency in the Mutuel Ticket Agents, but was 
defeated. At this time, the only position he holds is a clerk in the 
union office. 

The Chairman. Do any of the others hold any official positions in 
the union now ? 

Mr. Batalias. The only official positions I know is Paul Konya 
and George AVelbourne, they are the regular strong-arm boys. 

The Chairman. They are used for that purpose? 

Mr. Batalias. Yes, sir. 

The Chairman. They are the official "beater-uppers" ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. Spell their names. 

Mr. Batalias. Paul K-o-n-y-a and George W-el-b-o-u-r-n-e. 

He also uses the alias of George Hayes. 

The Chairman. May I ask you if these men work on jobs, or do 
they just work for the union ? 

Mr. Batalias. George Welbourne and Konya usually get their 
salary from pushbutton jobs. 

The Cilvirman. In other words, where they can be present for 5 
minutes ? 

Mr. Batalias. They can collect from as high as three different jobs 
during the same week. 

The Chairman. Do you mean collect from three different jobs? 

Mr. Batalias. Yes, sir. The money is sent to the union hall. 

The Chairman. Do you mean off of three different contractors? 

Mr. Batalias. Yes, sir. 

The Chairman. And that money goes to the union hall ? 

Mr. Batalias. Yes, sir. 

The Chairman. Do you know" how much of it they get? 

Mr. Batalias. To the best of my knowledge, these men are given 
their pay envelopes and I don't know what happens to the others. 

The Chairman. You don't know what happens to the others? 

Mr. Batalias. No, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7767 

The Chairman. In other words, they can take these men and sit at 
three different locations and push the button or supervise pushing the 
button? 

Mr. Batalias. Yes, sir. 

The Chairman. And collect a whole day's work from each contractor 
for the men ? 

Mr. Batalias. Yes, sir. 

The Chairman. But that money goes into the union ? 

Mr. Batalias. Yes, sir. 

The Chairman. And how much they get out of it, you don't know ? 

Mr. Batalias. No, sir. 

The Chairman. All right. 

Mr. Kennedy. Back at the meeting again, at the time they were 
holding you and punching you, you were kneed ; were you ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. And you were knocked unconscious at that time ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. "\Ylien did you recover consciousness ? 

Mr. Batalias. I believe it was in the ambulance going to the hospital. 

Mr. Kennedy. You say you preferred charges against the people? 

Mr. Batalias. Yes. 

Mr. Kennedy. Were there any witnesses ? 

Mr. Batalias. Yes. 

Mr. Kennedy. Would you tell Us what happened when you preferred 
the charges ? 

Mr. Batalias. Are you referring to the assault case ? 

Mr. Kennedy. Yes. 

Mr. Batalias. There was a number of individuals, one particularly 
William Wilkens, who testified to what he had seen. The union attor- 
ney paraded approximately 20 members of the local which contradicted 
our testimony. 

Mr. Kennedy. "^Ylio was the union attorney at that time ? 

Mr. Batalias. The union attorney was James Blake. 

Mr. Kennedy. And he brought in about 20 people that contradicted 
your testimony about being beaten ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. So these men were all acquitted ? 

Mr. Batalias. They were all acquitted; yes, sir. 

Mr. Kennedy. Was one of the witnesses that was brought in a 
Daniels ? 

Mr. Batalias. Yes, sir. James Daniels was one of the witnesses on 
behalf of the local union. 

Mi\ Kennedy. What did he testify to at that time ? 

Mr. Batalias. He identified one of the assailants as sitting along- 
side of him. I don't remember the exact testimony, but in other 
words his testimony was to the effect that this individual had not 
taken part in the beating. 

Mr. Kennedy. And he was brought in by Mr. Blake, the union 
attorney ? 

Mr. Batalias. He was brought in by Mr. Blake, the attorney for 
the union ; yes, sir. 

Mr. Kennedy. Wliat happened to Mr. Daniels ? 

Mr. Batalias. Mr. Daniels has recently been convicted of grand 
larceny and sentenced to a year in jail. 



7768 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. He was receiving money from contractors, was he ? 

Mr. Batalias. He was delivering money under fictitious names in 
pay envelopes to the local union. 

The Chairman. Do you mean they were padding the payroll and 
the local union was getting the money '? 

Mr. Batalias. The names of fictitious individuals were submitted 
to the contractors so that they could keep their wage records correct. 
The money is put in these envelopes and a collector, on behalf of the 
union, comes around and picks up these pay envelopes and takes them 
back to the local union. 

The Chairman. Do you mean there is no work done at all ? Do you 
mean they just use some fictitious name to place on the payroll records ? 

Mr. Batalias. The policy of the union is that if the machine is run 
unmanned by a member of local 138, the contractor has to pay local 138 
a day's pay for that machine, or for as many days as that machine is 
in operation. 

The Chairman. And they use some fictitious name ? 

Mr. Batalias. In most instances ; yes. 

The Chairman. And that is carried, I assume, on the records of the 
company ? 

Mr. Batalias. Yes, sir. 

The Chairman. And the union gets the money? Tliat goes into 
the union treasury ? 

Mr. Batalias. That I do not know. 

The Chairman. Or into the officer's pockets ? 

Mr. Batalias. It is a possibility. 

The Chairman. And a probability. All right. Proceed. 

Mr. Kennedy. So these men were all acquitted of this beating of 
you ; is that right ? 

Mr. BatalixVS. Yes, sir. 

Mr. Kennedy. Wliat about you and Mr. Wilkins? Did anything 
happen in connection with the union ? 

Mr. Batalias. After Mr. DeKoning's probation expired, he 
returned 

Mr. Kennedy. This is DeKoning, Jr. ? 

Mr. Batalias. Yes, sir, DeKoning, Jr. He returned in May 1954 
and announced himself as president and business manager. 

Mr. Kennedy. How would he have been able to do that, if he had 
just been on probation ? 

Mr. Batalias, He claimed that the executive board had appointed 
him, that Charles Britton had resigned, and that William Maloney, 
the general president, had approved of it. 

Mr. Kennedy. This was just after he pleaded guilty to one of the 
charges ? 

Mr. Batalias. This was after his probation. In other words, after 
his probation expired, he came back. 

Mr. Kennedy. He came back in as president of the local ? 

Mr. Batalias. Yes, sir ; immediately after it expired. 

Mr. Kennedy. What hapj^ened to the incumbent president ? 

Mr. Batalias. He claimed that he was sick, and was retiring. 

The Chairman. There was no election ? 

Mr. Batalias. No election ; no, sir. 



IMPROPER ACTIVITIES IN THE LABOR FIEiLD 7769 

The Chairman. Just the executive board. Mr. DeKoning came 
back and said, "I am your president, and the executive board elected 
me; Britton is resigning, and Maloney has approved it?" 

Mr. Batalias. I even asked Mr. DeKoning to give the members an 
opportunity to approve the executive board minutes before he took 
office, but he took office before they were even approved. 

Mr. Kennedy. He took office as president. Subsequently, was there 
a bona fide election ? 

Mr. Batalias. No, sir ; there has never been a bona fide election for 
the presidency. 

Mr. Kennedy. There was some election in which he was ultimately 
elected to that position, apparently. 

Mr. Batalias. No, sir ; he has never been elected to the presidency. 

Mr. I^nnedy. Will you tell what happened, then? There was 
some kind of an election. 

Mr. Batalias. At this meeting, I questioned Mr. DeKoning's activ- 
ities, and he personally threatened to take care of me. At the next 
meeting I was brought up on charges and tried. 

Mr .Kennedy. What were the charges against you ? 

Mr. Batalias. Bringing disrepute into the local union for bringing 
charges against brother members. 

The Chairman. In other words, if you bring any decency or democ- 
racy into the management of the union, that is disreputable conduct ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. How had you brought charges against members of 
the local ? 

Mr. Batalias. How ? 

Mr. Kennedy. Yes. What had you done ? "Wliat were they refer- 
ring to? ' 

Mr. Batalias. They were referring to my complaints to the district 
attorney where the individuals had been tried on the assault case. 

Mr. Kennedy. So for bringing charges against these individuals 
that you said beat you, you were then brought up on charges by the 
union, for bringing'the union into disrepute by bringing these charges 
against these people ? 

Mr. Batalias. Yes, sir ; that is correct. 

Mr. Kennedy. You were found guilty on those charges ? 

Mr. Batalias. I was tried and found guilty and barred from attend- 
ing meetings for 5 years, and fined $750. The sentence was imposed 
by William DeKoning, Jr. He Imd the sentence all written out on 
a typewritten piece of paper before the meeting even opened, before 
tlie trial even started. 

Mr. Kennedy. Had they also include a charge about you speaking 
on the radio ? 

Mr. Batalias. No, sir, I have never been tried on that count. Mr. 
Wilkens was also brought up on charges for testifying at that trial. 

Mr. Kennedy. At the trial? 

Mr. Batalias. Yes, sir. He testified under subpena of the district 
attorney, and yet he was brought up on charges for bringing disrepute 
into the local union, just by testi f ying. 

Mr, Kennedy. Were any charges made against those who were in- 
dicted for beating you ? 

Mr. Batalias. No charges were made against those individuals. 



7770 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. Just you two individuals that had testified at the 
trial at the request of the district attorney ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. Were you later charged with bringing the union 
into disrepute by going on a radio program ? 

Mr. Batalias. Not myself individually. William Wilkens has. 

Mr. Kennedy. But not you ? 

Mr. Batalias. No, sir. 

Mr. Kennedy. You were telling about DeKoning taking over the 
local. He took over as president and you opposed that. You were 
brought up on charges ? 

Mr. Batalias. Yes, sir. 

Mr. Kennedy. And you were barred from attending union meetings 
for 5 years ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. Have you had any connection with it since then ? 

Mr. Batalias. Yes. I have been engaged in a National Labor Rela- 
tions Board action against the union. 

I also appealed to the general convention in Chicago in 1956. There 
have been continuations of certain legal actions. 

Mr. Kennedy. You went on the radio program with Mr. Wilkens ? 

Mr. Batalias. Yes, sir. I appeared on the radio program with Mr. 
Wilkens. We were interviewed by Victor Riesel in conjunction with 
the collusion between local 138 and the contractors on Long Island. 

Mr. Kennedy. That was the same night 

Mr. Batalias. That was the same night that the acid was tlirown in 
Mr. Riesel's face. 

Mr. Kennedy. But you have not been able to participate in any 
union meetings? 

Mr. Batalias. I have not. 

Mr. Kennedy. You have been barred from that ? 

Mr. Batalias. That is correct. 

Mr. Kennedy. Wliat control does the union have over the jobs of 
the operating engineers ? 

Mr. Batalias. Anybody who works as an operating engineer has 
to belong to local 138. The work is given out by the local union, and 
the contractors and the members are instructed that they have to get 
their jobs through the local office. 

Mr. Kennedy. Would it make it very difficult for you if you lost 
your membership in local 138 ? 

Mr. Batalias. Very difficult. 

Mr. Kennedy. What is the position of the master mechanic in con- 
nection with all of that ? 

Mr. Batalias. The master mechanic supervises the hiring and jSring 
of operating engineers. 

Mr. Kennedy. And out of your group, is it Mr. Lou Wilkens who 
is the master mechanic ? 

Mr. Batalias. He is a master mechanic ; yes, sir. 

Mr. Kennedy. Do you depend on the master mechanic for your 
jobs? 

Mr. Batalias. I believe everybody here in our group is dependent 
upon Mr. Wilkens. We depend upon Mr. Wilkens for our livelihood. 

Mr. Kennedy. If Mr. Wilkens is barred from the union, you might 
lose your jobs? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7771 

Mr. Batalias. I believe we would lose our jobs ; yes, sir. 

Mr. Kennedy. Have attempts been made to oust Mr. Wilkens? 

Mr. Batalias. Yes, sir ; there have been attempts made. There 
were charges preferred against Mr. Wilkens approximately a year 
ago, and I believe a permanent injunction in the Federal court was 
obtained to prevent the union from bringing Mr. Wilkens up on trial. 

Mr. Kennedy. Were charges just made recently against Mr. 
Wilkens? 

Mr. Batalias. Yes, sir. Mr. Wilkens is supposed to appear tomor- 
row night at a local union meeting to face additional charges. 

Mr. Kennedy. Is that tonight? 

Mr. Batalias. Yes, sir ; it is tonight. That is correct. 

Mr. Kennedy. What are the additional charges against him? 

Mr. Batalias. I do not know exactly what the charges are. 

Mr. Kennedy. Well, we can tisk Mr. Wilkens. 

The Chairman. This particular examination that is now under 
way will have to continue for quite a long time, I am sure. This 
seems about as good a time as any to take a little recess for lunch. 
We will recess until 2 : 15. 

(Whereupon, at 12: 20 p. m., a recess was taken until 2: 15, p. m., 
of the same day.) 

afternoon SESSION 

Tlie Chairman. The committee will be in order. 

(Members of the select committee present at the convening of the 
session were : Senators McClellan and Curtis.) 

The Chairman. All right, Mr. Counsel, the six witnesses are pres- 
ent that were being interrogated when we recessed. 

TESTIMONY OF LOUIS WILKENS, WILLIAM WILKENS, PETER 
BATALIAS, CHARLES SKURA, GARRETT NAGLE, AND JOHN 
DeKONING— Resumed 

Mr. Kennedy. Mr. Nagle, I want to finish up the matter on which 
you were testifying, regarding your efforts to get into local 138. 
Could you tell us about that? You said that you made efforts on 
approximately four different occasions to try to get in from 138-A 
into 138. 

Mr. Nagle. That is true. 

Mr. Kennedy. What happened, and what were the mechanics of it ? 

Mr. Nagle. After the strife started in local 138, I went to the 
executive board meeting on my own and I got in and made applica- 
tion. I was told to appear before the body at the next regular meet- 
ing which I did. They read off my name, and the application, and 
I was asked to leave the room while the men conducted a vote. Tliere 
was a shout vote taken and I was rejected. 

When I came back into the meeting room I was just told to sit 
down and they started to go into other orders of business, and so I 
asked the Chair, Mr. Britton was in the chair at that time, what 
happened to my application, and he said, "You were rejected." 

I wanted to know why, and what was the reason, and he said, 
"There doesn't have to be a reason in this organization." 

I tried to get the floor then and ask certain members who I worked 
with to stand up and vouch that I was a capable engineer, and in fact 



7772 IMPROPER ACTIVITIES IX THE LABOR FIELD 

in 13 years I am in the local I have only worked on a job that calls 
for an apprentice for only a year, and the rest of the time I worked 
as an engineer. 

Then I was confused and shouted down, and told I was out of 
order and asked to sit down, which I did. 

The next meeting, I made application again before the executive 
board, and I found out that William DeKoning, Jr., was back in, and 
at that time he told me that the executive board had appointed him 
a business representative. 

So a couple of days later I went into the office and I talked to 
DeKoning about being rejected, and there should be some kind of a 
schooling system where a man could learn to be a capable engineer, and 
automatically be transferred into the parent body. 

I also asked for other things, benefits for the members of the local. 
After discussing or talking to Mr. DeKoning for about 15 minutes, 
Mr. DeKoning turned to me, and he said, and I quote : 

You go blank yourself. My old man ran this local for 25 years the way it is 
now, and I am not changing. 

I left the office, and I went before the body again, and before the 
executive board again, and a total of 4 times, at least 4 times, I made 
application to the executive board, and a period before the body and 
requested secret ballots on my transfer, and I was refused. At one 
meeting Mr. DeKoning stood up and told the men : 

Remember when you vote, it isn't the qualification of a man that counts. 
This is a fraternal organization. You judge him by his character. 

Well, I still haven't gotten into the parent organization. 

Senator Curtis. Now, were you a member of the union so far as 
dues were concerned ? 

Mr. Nagle. Yes, sir. 

Senator Curtis. How much initiation fee did you have to pay? 

Mr. Nagle. At the time that I joined the union in 1945, approxi- 
mately $150, and plus 3 months' dues. 

Senator Curtis. How much is it now ? 

Mr. Nagle. Well, there are three different categories, and the price 
varies. 

Senator Curtis. What are they ? 

Mr. Nagle. In the parent organization, which is the engineers, I 
believe it is $350. In the A local, apprentices, it is $200. In the B 
local, it is $100. 

Senator Curtis. "Who can join the B local ? 

Mr. Nagle. Anybody that DeKoning chooses, and he hands the 
union books out to whomever he sees fit, and nobody in the B local 
comes before the body to be exempted. 

Senator Curtis. How about A local ? 

Mr. Nagle. In A local you have to come before the body to be 
exempted. 

Senator Curtis. Wliat is your monthly or annual dues ? 

Mr. Nagle. $8 a month. 

Senator Curtis. $8 a month ? 

Mr. Nagle. That is correct. 

Senator Curtis. So back in 1945 you had to pay about $150 initia- 
tion? 

Mr. Nagle. I believe that is the correct figure. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7773 

Senator Curtis. And you paid $8 a month dues ? 

Mr. Nagle. At that time the dues was not $8, and it has been raised 
since then. 

Senator Curtis. And that makes you a member of the union but 
not a voting- member; is that right? 

Mr. Nagle. That is correct. 

Senator Cu'Rtis. Now, wdiat would be your job opportunities if you 
didn't belong at all ? 

Mr. Nagle. If I didn't belong to the local at all, or to any union ? 

Senator Curtis. Yes. 

Mr. Nagle. I just wouldn't get a job. Where there were union 
men employed, I wouldn't work. I have never worked in 13 years 
on a job, I never worked alongside of a man who wasn't a union mem- 
ber that didn't pay permit money. 

Senator Curtis. In other words, all you have gotten out of this 
money you have paid is permission to work, isn't that right? 

Mr. Nagle. No, there are other benefits. Out of the dues money 
you are talking about? 

Senator Curtis. Yes. 

Mr. Nagle. That is all. You get a life insurance policy. 

Senator Curtis. That is i^aid as part of the $8 ? 

Mr. Nagle. It is taken out of the $8. 

Senator Curtis. You don't know how" much of that is life insurance 
and how much of it is dues? 

Mr. Nagle. I believe — I couldn't sa}^, it is not more than 50 cents, 
and I think it is a 50-cent per capita tax is what goes toward your 
life insurance. 

Senator CuR'ns. It is a grou]:) life insurance arrangement? 

Mr. Nagle. That is rightr 

Senator Curtis. Do they deliver to you an individual policy for 
you to keep? 

Mr. Nagle. No, I have no policy on that. 

Senator Curtis. And have you ever figured up or have you known 
it to be done, what the costs of collective bargaining would amount 
to? 

Suppose a union were just charging you for the actual expense of 
negotiating a contract and representing you with management. You 
don't know what those costs would run ? 

Mr. Nagle. I don't know. I wouldn't have any idea of that. 

Senator Curtis. That is all, Mr. Chairman. 

Mr. Kexxedy. I have talked to Mr. William DeKoning, and he 
said that he had reconnnended you on the floor or recommended to the 
membershi]^ that you be taken into 138. Do you know anything 
about that ? 

Mr. Nagle. Mr. Kennedy, I can't say that he didn't actually. I am 
in the other room. But if Mr. DeKoning recommended me, I guaran- 
tee that I would be taken into local 138. I will defy Mr. DeKoning 
now to recommend me to the body and let me go and get a transfer. 

Mr. Kennedy. When he testifies this afternoon, you will await his 
recommendation for you ? You would like to have his recommenda- 
tion wlien lie testifies this afternoon ? 

Mr. Nagle. I ceilainly would. 

Mr. Kennedy. And Mr. Batalias also said that the reason you were 
brought up on charges regarding testifying at this trial is that you 



7774 IMPROPER ACTIVITIES IN THE LABOR FIELD 

were never beaten in the first place. He said that you only stayed 
in the hospital for 15 minutes, and that the hospital records showed 
you were never beaten. Could you comment on that ? 

Mr. Nagle. I was taken to Meadowbrook Hospital in an ambu- 
lance, and I was examined, and I was taken up to the X-ray room, 
and I was in a nervous state because my wife had been threatened 
and I didn't feel safe in the hospital. I asked to be released and the 
doctor advised me to say there, and I had two friends of mine take 
me 

Mr. Kennedy. What did the hospital or doctors report say about 
you at that time ? 

Mr. Nagle. To the best of my knowledge, the doctor's report 
stated that I had internal injuries, and there was no visible signs of 
a beating, and I can explain that for the simple reason that 1 had 
an overcoat on, and all blows were below my belt, and I was beaten 
in the stomach, and I had rabbit punches in the back of the neck, 
which knocked me out. There was no blows on my face. 

After I had been taken to this home, a doctor had been called, and 
he advised that I be sent to a hospital and he recommended a private 
hospital and I was put in that hospital under a fictitious name, and 
I stayed 

Mr. Kennedy. For what reason under a fictitious name ? 

Mr. Nagle. So that no one connected with the union would be 
able to find me. I hid out. After being released from this Bruns- 
wick Hospital, I was given protection by the police chief of Amity- 
ville, and he assigned an officer to watch the corridor of the hall, and 
I was then taken to a private home and I was kept in that private home 
by friends of mine until the district attorney had made arrangements 
with the local newspaper in Nassau County that I be delivered to 
Nassau County district attorney's office. 

I then was under the protection of the Nassau County Police for 
a period of about 6 months. 

Mr. Kennedy. You were in the other hospital and stayed there for 
how long ? 

Mr. Nagle. I believe it was 2 days. 

Mr. Kennedy. Now, I would like to ask one of the witnesses, Mr. 
William Wilkens, to come forward, and I have some questions for him. 

Before you go, Mr. Nagle, let me summarize : You have been in the 
union for 13 years and you cannot speak on the floor of the union? 

Mr. Nagle. Well, up until the time that the strike started, no, and 
I couldn't speak on the floor. 

Mr. Kennedy. But you now can? 

Mr. Nagle. I just get up and talk. 

Mr. Kennedy. You cannot vote in an election ? 

Mr. Nagle. No, sir. 

Mr. Kennedy. And you cannot run for office ? 

Mr. Nagle. No, sir. 

Mr. Kennedy. And your dues are the same as those who run the 
union ? 

Mr. Nagle. That is correct. 

Mr. Kennedy. Mr. William Wilkens, will you come forward. 

Mr. W. Wilkens. Yes, sir. 

Mr. Kennedy. Mr. Wilkens, you are in the local 138 ; is that right ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7775 

Mr. W. WiLKENS. Yes, sir. 

Mr. Kennedy. You have the right to participate in the union 
affairs ? 

Mr. W. WiLKENs. I did have ; yes. 

Mr. Kennedy. You do not any more ? 

Mr. W. WiLKENS. No ; not since I was expelled for 5 years from at- 
tending union meetings. 

Mr. Kennedy. For what reason were you expelled ? 

Mr. W. WiLKENS. Well, I answered a subpena issued to me by the 
district attorney of Nassau County to appear as a witness in the assault 
trial of Peter Batalias, and after that trial I was brought up on charges 
for bringing the union into disrepute by being a witness at this assault 
trial. 

At my trial the judge, who was William C. DeKoning, Jr., read off 
the sentence to me, which was already prepared on a written piece of 
paper, and I was expelled from the union meetings for a period of 5 
years and fined a total of $650 and I was told that the facilities of the 
union office would not be accorded to me any more in that period. 

Mr. Kennedy. So you are out of the union as of this time or 
suspended? 

Mr. W. WiLKENS. I am suspended from union meetings, which 
cuts off my power to talk at union meetings. 

Mr. Kennedy. You still pay your dues and you are a member of the 
union, but you cannot attend union meetings ? 

Mr. W. WiLKENS. That is correct. 

Mr, Kennedy. Included in that was the fact that you appeared on 
this program with Victor Riesel? 

Mr. W. WiLKENS. That Avas the first trial that they brought me 
up on. 

Another trial I was brought up on, I was listed with 7 charges, and 
1 of which was that I picketed the local union hall at the Labor Lyceum 
in Uniondale asking for a job, and the signs read, "Mr. George Meany, 
please help us. AFL-CIO on ethics, we need your help. We want 
a job." 

I also went to the international union headquarters here in Wash- 
ington, D. C, and picketed their building. 

Mr. Kennedy. You picketed the international headquarters of the 
Oj crating Engineers ? 

Mr. W. WiLKENS. Yes, sir; we did. We were desperate and we 
needed a job, and we kept sending telegrams to Mr. Maloney, and to 
Mr. Paul Larson, his chief assistant, saying we needed help, and we 
wanted someone to come down there, and we got no answer. 

Mr. Kennedy. Did Mr. Maloney help you? 

Mr. W. WiLKENS. He never helped us at all. 

Mr. Kennedy. Did he ever indicate or show any interest in the 
matter at all? 

Mr. W. WiLKENS. Yes ; at an executive board meeting of the AFL- 
CIO, at the Poconas, that is the resort place of Dave Dubinsky's 
union. We appealed them to the AFI^CIO committee on ethics, and 
I met Mr. Maloney in that lobby, and said, "May I talk with you?" 
and he said, "I only have a couple of minutes. What have you got to 
tell me?" I said, "It is only this: That Thomas Ikard, who is an 
engineer of 138, and myself are here appealing to the committee on 



7776 IMPROPER ACTIVITIES EST THE LABOR FIELD 

ethics to come down and clean up our local. We need a job and Ave 
are being kept out of work." 

He said, "Well, you know, Bill, there are 2 sides to every story, 
sometimes there are 3. And DeKoning tells me that you guys are just 
a bunch of troublemakers." So I said, "Is it being a troublemaker 
by persistently asking for a job ? Is it being a troublemaker by going 
to the union office and asking to see a copy of the work list, and a 
copy of the working agreement?" We don't have any of those. 

Mr. Kennedy. At that time you could not even see the contract 
under which you were working? 

Mr. W. WiLKENS. We have never seen a copy of the working agree- 
ment up until this time, when a spotlight of publicity has been on 
DeKoning down there. 

(At this point the following members were present: Senators 
McClellan and Curtis.) 

Mr. Kennedy. But up until the period of the last year or so, you 
were never able to even see a contract ? 

Mr. W. WiLKENS. I never saw a word and no member in the union 
was allowed to even see a copy of it. The only men that ever had a 
copy of the contract were maybe 4 or 5 master mechanics. 

Mr. Kennedy. How about wlien you were negotiating the contract? 
Wasn't there a group of the membership that negotiated the contract 
with the employer ? 

Mr. W. WiLKENS. They were always handpicked. They were 
usually delegates and a couple of master mechanics. 

Mr. Kennedy. It wasn't the people working on the job that negoti- 
ated the contract ? 

Mr. W. WiLKENS. Never. The men never sat in on the negotiating 
of a contract in the history of local 138. 

Mr. Kennedy. Didn't they submit it to see if they approved it? 

Mr. W. WiLKENS. Never. A contract has never been submitted for 
approval, a contract has never been submitted to get further ideas or 
proposals by the rank and file. 

Mr. Kennedy. In fact, when you asked to see the contract, you 
were not allowed to see it? 

Mr. W. WiLKENS. I remember one particular instance when a man 
asked to see a copy of the working agreement, and a goon, by the 
name of George Welbourne, attacked this man verbally. I asked 
Verner Sofield, the recording secretary, for a copy of the working 
agreement, at the time I also asked him for a job. 

George Welbourne backed me up to a locker and abused my dead 
mother and my wife. 

Mr. Kennedy. AVliat is George Welbourne's record? 

Mr. W. WiLKENS. Well, he has a record, I will say that much. 

Mr. Kennedy. Has he done any fighting himself? 

Mr. W. WiLKENS. Yes ; he used to fight under the name of George 
Hayes. He used to be a professional boxer. 

Mr. Kennedy. Is he part of the group that keeps the members in 
line in 138 ? 

Mr. W. WiLKENS. Yes. He is a part of the group with Paul 
Konya, Jim Dutfy, and Dennis Doyle, who are always in front of the 
union hall. And our union hall, we have a bunch of wooden chairs, 
and we have a dais, which is up in the front. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7777 

The doors of our union meeting always liad cliains and padlocks 
on them that you couldn't get out of there if you tried.^ And they 
were there until we made a complaint to the Uniondale Fire Depart- 
ment and the fire marshal came and ordered them to take the chains 
and padlocks ott" the doors, and also to change the structure of the 
building, which they complied with. 

Mr. IvENNEDY. Did you mean the chains and padlocks were on the 
doors during the union meeting ? 

Mr. W. WiLKEXS. On the inside of the door. Sometimes there 
were four or five hundred men in that union hall and all the doors 
were padlocked. You couldn't get out if they had a stick of dyna- 
mite. 

Mr. Kennedt. You were complaining or tried to complain of some 
of these things to William Maloney at this meeting ? 

Mr. W. WiLKENS. Yes; at this meeting in the Poconos, I com- 
plained of the conditions that still existe^d, even though he sent a 
couple of guys from the international to investigate. I said the con- 
ditions still existed, and DeKoning, Jr., still refused to give us a job, 
that we were refused a copy of the working agreement, that we 
couldn't even get copies of the constitution, and we could not see the 
work list. 

]\Ir. Kennedy. What did Mr. William Maloney say for you to do 
about it. 

Mr. WiLKENS. Mr. Maloney said, "Well, I will give you this prom- 
ise. You go back to Long Island right now, and, by tomorrow morn- 
ing, when you go to the union office, you will be given a job. I 
promise you that." 

I said, "That is good enough for us." 

He said, "We will not bother you any more." 

We went directly home, and the following morning we went to the 
union hall and we asked for a job, and we were told "You blankety- 
blank rebels will never get a job out of this office as long as we are 
here in power." 

Mr. Kennedy. Who told you that? 

Mr. W. WiLKENS. Verner Sofield. 

Senator Cuetis. Were there jobs to be had ? 

Mr. W. WiLKENS. There were plenty of jobs. Senator. There was 
plenty of work at this time on Long Island. 

Senator Clirtis. Are you a family man ; are you ? 

Mr. W. WiLKENS. Yes, sir ; I have three children. 

Senator Citktis. Were you unemi^loyed at the time, then? 

Mr. W. WiLKENS. Yes ; I was. 

Senator Ctjrtis. How^ long did your unemployment exist by reason 
of this arbitrary action ? 

Mr. W. WiLKENS. Well, it varied. I would say I lost a period of 3 
months since this fight started. That is over about a 4-year period. 
The reason that I have lost that work is not because of my capability of 
operating equipment. It is on the record, and DeKoning, Junior, 
incidentally, admitted to Maloney that I am a pretty good crane 
operator. I can run any type of equipment that is called for within 
our jurisdiction out on Long Island, and still I am kept out of work 
because of my opposition to the regime of DeKoning. 

2124.-?— 58— pt. 19 18 



7778 IMPROPER ACTIVrriEIS IN THE LABOR FIELD 

Senator Curtis. Did I understand that you took this story to the 
ethical practices committee of the A. F. of L.-CIO? 

Mr. W. WiLKENs. Yes; I spoke to Mr. David Dubinsky and Mr. 
Potofsky. 

Senator Curtis. Do you happen to know who constitutes that prac- 
tices committee ? 

Mr. W. WiLKENs. I can recall that Mr. Al Hayes is the chairman, 
there is a Mr. Potofsky, a Mr. Dubinsky, and I believe there is six 
others, which I cannot recall at this time. 

The Chairman. Mr. Harrison, George Harrison ? 

Mr. W. WiLKENs. George Harrison and someone else. 

Senator Curtis. Can the stail supply those names ? 

Mr. Kennedy. Hayes, Potofsky, Dubinsky, Harrison. 

Mr. W. Wilkens. Curran, I believe, is another one. 

Mr. Kennedy. Joe Curran. 

Mr. W. Wilkens. I may state at this time when I talked to these 
gentlemen, they said that we had a serious problem, and it certainly 
was a black eye to labor, what was going on. But being that the 
permanent chairman, Al Hayes was at his own convention, they said 
they would take this matter up with him. They said tli,ley were well 
read up on the subject of local 138, being that it was covered pretty 
well by the press, and that they would get in touch with us further on. 

Senator Curtis. How long ago was that ? 

Mr. W. Wilkens. I believe it was in 1956. 

Senator Curtis. Did they get in touch with you ? 

Mr. W. WiiiKENS. Yes; I received a letter saying that they were 
going to take the matter up. And since that time, I have learned 
that they are more or less holding up a report because of this investi- 
gation that is going on, this Senate investigation. I believe I am 
correct in that. 

Senator Curtis. That is all, Mr. Chairman. 

Mr. Kennedy. Have you approached William Maloney other than 
that one time that you saw him at the Poconos ? 

Mr. W. Wilkens. Yes. I had to appeal, according to our constitu- 
tion, if you are brought up on a trial, and convicted, you have to appeal 
to your general executive board here in Washington. That is the inter- 
national executive board. Peter Batalias and myself, we both ap- 
pealed, and we came here to Washington — I cannot recall the date — 
and while waiting for another witness who was gjiving testimony about 
his case down in Virginia, we witnessed a business manager of this 
Virginia local getting up from his chair and kicking this old guy in 
the belly, right before Maloney's eyes. Maloney just kept on conduct- 
ing the meeting. Afterwards he was interviewed, and his answer was, 
quote, "Well, I think he actually kicked the cliair, but, after all, it is 
not unusual for somebody to ket kicked in the belly at our union 
meetings." 

Senator Curtis. Wliere did this happen ? 

Mr. W. Wilkens. This happened right in the international execu- 
tive board here in Washington, before the international executive 
board. 

Senator Curtis. What is the street address ? 
Mr. W. Wilkens. It is Northwest K Street. 

Mr. Kennedy. It is the old headquarters of the Operating En- 
gineers ? 



IMPROPER ACTIVITIES IN THE LABOR FIEiLD 7779 

Mr. W. WiLKENS. The old headquarters, yes. Since then they have 
a new building. 

Senator Curtis. Do you remember when it was ? 

Mr. W. WiLKENS. The address is 1001 K Street. 

Senator Curtis. No, I say, do you remember when it was ? 

Mr. W. WiLKiNS. That this happened '^ 

Senator Curtis. Yes. 

Mr. W. WiLKENS. October 12, 1955. 

Senator Curtis. You say the victim was an old man ? 

Mr. W. WiLKENS. He was an old man, an old-time engineer from a 
Virginia local. 

Senator Curtis. Wliat had he done to provoke such an assault ? 

Mr. W. WiLKENS. He gave testimony at this general executive board 
that this business manager of the union was an alcoholic, that he was 
being treated by the AA, that he was running the union in an un- 
democratic manner, that he was a dictator. Well, that is as far as he 
got. That is when he got the kick in the stomach, and he got up and 
left. 

Senator Curtis. Who was presiding over the meeting when it 
happened ? 

jNIr. W. WiLKENS. William Maloney, the general president. 

Senator Curtis. The international president? 

Mr. W. WiLKiNS. Yes, sir. 

Senator Curtis. He did nothing ? 

Mr. W. WiLKENS. He did nothing. He didn't do anything verbally, 
physically, or anything else. He just sat there. He just said, "All 
right, you fellows are next, from New York. Come on." 

Senator Curtis. And did he make some remarks in defense of the 
man that did the kicking, is that right ? 

Mr. W. WiLKENS. Yes. He didn't even chastise the man in our 
presence, on the record. He didn't say anything. But he did give 
a quote to the newspapers. He said it is not unusual for a member 
•to be kicked in the belly at our union meetings. 

The Chairman. Was he telling the truth ? 

Mr. W. WiLKENS. I guarantee you he was telling the truth. 

Senator Curtis. You know, that is astounding to me. 

Mr. W. WiLKENS. Well, it is the truth. 

Senator Curtis. I believe you are telling the truth. But that situa- 
tion is 

Mr. W. WiLKiNS. I defy DeKoning, Junior, to say I am perjur- 
ing myself. I am telling the truth. 

Senator Curtis. No, I know you are giving a correct account. But 
I have more faith in the goodness and honesty of the rank-and-file 
people who make up our employment rolls of the country to believe 
that those things are necessary. I do not think they have to be ruled 
by violence. I think it is just inexcusable on the part of these labor 
leaders, and not only those that commit the violence. They are the 
lesser offenders. But these top officers, who tolerate it, and many of 
them who came to power by reason of violence, are the ones I am 
referring to. I think they are the greatest offenders in our economy. 
Mr. W. WiLKENS. Senator, if we could come up with some sort of 
legislation to take the easy buck out of the pockets of some of these 
labor leaders, you would have a decent labor movement. 



7780 EMPROPER ACTIVITIES IX THE LABOR FIELD 

That is all we are Ugliting for, decent labor movements. That is 
all our fight is about. 

Senator Curtis. That is what this committee, I thuik, is interested 
in. In that connection, do you have any specific recommendations as 
to what could be done by law that would put the power of running 
unions where it belongs, in the rank-and-file members, and curb the 
powei*s of these thugs and racketeers I 

"Well, it is too much power for good men to have, let alone thugs 
and racketeers. Do you have any recommendations about what we 
ought to do ? 

Mr. AV. WiLKExs. Well, I can only think of a few, but I am sure we 
could list 20 when we think of this and write it down. The fii-st 
thing that has to be said, as I said, is that you have to take the easy 
dollar away from these miion leaders, where they are allowed to come 
on the job and make a deal with the contractor, the collusion with the 
contractor, where they have the power to say to the contractor, "Xow, 
look, you can run this job, and with the 10 engineers here, you can 
only have 5 engineers, that is O. K., as long as you take care of me," 
and then go to the other fellow and say, "Look, you haven't been pay- 
ing me otf. You have 10 machines here and you have to have 10 
engineers." 

That is the easy buck. That has to be done away with. The elec- 
tions at the unions have to be done in true bona fide manner. 

They have to be governed by some sort of agency. In our union, 
throughout the country, we can prove that there is no democracy 
whatsoever. A man has no freedom of speech, and he is not allowed 
to vote for whom he wants. He can't even make a recommendation 
to have a rank-and-file member to go to a convention. 

Senator Curtis. You used the expression "throughout the coun- 
try.*' What do you mean by that ^ 

Mr. ^y. WiLKEXs. By that I mean practically TO percent of the 
locals in the international have undemocratic policies. 

Senator Curtis. Your particular international ^ 

Mr. W. "WiLKEXs. Our international. 

In fact, I venture to say that more than 50 percent of them are run 
by a dictator, and a dictator is William Maloney. He is the Xo. 1 
man. He appoints and disappoints. He fires and he hires. After 
all. Senator, if I am the general president of a union and I say to 
you, "Here, you are going to be a vice president. I will give you 
$30,000 a year salary, $15,000 a year expenses, but when I want you 
to vote for me, you know the way to vote.'' 

"Here you are, Mister, I am going to give you a job, at $10,000 
a year." 

In other words, he has the power to say to a man "You are going 
to eat oatmeal every day," and he has the power to say to another 
man, "You are going to eat steaks three times a day." 

That power has to be taken away. That is the soreness that is 
in this union. 

Senator Curtis. I assure you that I believe that every member of 
the committee will be most anxious to receive any further and de- 
tailed recommendations as to how to accomplish these objectives, as 
time goes on. 

I admire vou men for coming here and tellino; vour storv. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7781 

Mr. W. WiLKENS. We appreciate that, Senator. I want to make 
this statement for the record, that we will make recommendations, 
but we also want for the record to show that we are fighting for 
nothing but decent trade unionism. We are here to keep our union 
together. We don't want our union dissolved. We just want the 
guys that are running it in an undemocratic manner. They don't 
belong in the labor movement. William DeKoning, Jr., to us is 
nothing but a black eye to the labor movement. He has a record and 
morally he should not be a leader of a bunch of men whose livelihood 
is in his hands. 

The Chairman. What about Maloney ? 

Mr. W. WiLKENS. Maloney is in the same category, only on a 
bigger level. 

The Chairman. Don't you think the ethical practices committee has 
a job hereto do? 

Mr. W. WiLKENS. Yes, sir. They should throw him and all of his 
crooks out with him. 

The Chairman. You do not want the union thrown out, as such? 

Mr. W. WiLKENS. No, sir. We want the union to stay as a union. 

The Chairman. You want a union that is operated by leadership 
that is worthy to be members of the AFL-CIO federation ? 

Mr. W. WiLKENS. Yes, sir. And we challenge the leaders of our 
international to get something on black and white, legalized docu- 
ments, to give protection to the rank and file. There is no protection 
of the rank and file in our organization. It is a one-way street. They 
get a pension, and we don't get a pension. They get vacations, but we 
don't get vacations. We are the slobs that have to run the machinery 
to pay them. 

The Chairman. What is the status of your complaint before the 
ethical proctices committee now ? 

Mr. W. WiLKENS. I believe we submitted them our 12-point plan. 

The Chairman. What I am trying to determine is this : Is the ethi- 
cal practices committee now actually considering tliese charges against 
your officials in the way your union is run ? 

Mr. W. WiLKENS. The only thing we liave from the ethical prac- 
tices is a letter from Al Hayes to myself which stated "Your case is 
being considered, it is being studied." Through the newspapers, I 
have read, and I have them liome and on file, that this committee re- 
quested the ethical practices committee to hold up on rendering a 
decision in regards to our union until this committee was finislied. 

The Chairman. I think that is an error. I don't remember having 
signed any such letter. I haven't asked them to hold up anywhere 
any time that they had a job to do that needed to be done. From the 
testimony alread}?^ developed in these hearings, that the San Francisco 
area alone should engage the attention of the ethical practices com- 
mittee. 

In my judgment, as we go further and further into the operations, 
based upon what you are testifying to, and other witnesses here, and 
other testimony that I have good reason to anticipate is going to be 
produced at this hearing, I think the ethical practices committee 
could begin holding hearings on this tomorrow, that it could begin 
deliberating on it. Certainly by tlie time we get through here, I think 
it will be incumbent upon them to go into this matter thoroughly, and 
take such action as is within their power to clean up this union. 



7782 IMPROPER ACnVITIEIS EST' THE LABOR FTEIiD 

Based on the testimony to date, it is a national disgrace, the way 
this international union is run. 

Mr. W. WiLKENS. I can assure you a telegram will be sent to Mr. Al 
Hayes, the chairman of the committee on ethics, right tonight, after this 
is over with, requesting that. 

Mr. Kennedy. Tell us what happened when you came down here to 
Washington. You appeared before Mr. Maloney after you saw the 
man kicked in the belly. What happened after that ? 

Mr. W. WiLKENS. They ruled that they will reduce the fines down 
to $100 each, but the suspension of 5 years from the union meetings 
would be upheld. Then we proceeded to the Chicago convention. 
They have a convention every 4 years, our international. The first 
day that Pete and I got there we tried to see Mr. Maloney. I think it is 
easier to see the President of the United States, because we never could 
get to see him. When we finally cornered him once, he says, "I am 
a busy man, with a lot of committees. I am a very busy man. Go see 
that committee on appeals Go see the appeals committee." 

We went with our lawyer, William Keating, and we tried to have 
him sit there so we could tell our case. They refused to let him 
sit there. They said, "No outside attorneys. You fellows are here on 
your own." 

We told them our case. We appealed to them to come down and 
investigate DeKoning, investigate our charges, and of the corrupt 
situation, of the collusion of the contractors and DeKoning. We 
must have talked for 2 hours. Well, nothing was done. 

They refused to let us talk on the convention floor. We wanted 
to get on the convention floor and appealed to all of the delegates there. 
They refused this. They wouldn't let us even go into the convention 
until we gave a strong appeal to it, and they finally let us set upstairs 
in the balcony. 

We were sitting up in the balcony during the convention, and the 
appeals committee chairman says : "The case of Peter Batalias, and 
William Wilkens, down at local 138. Their appeals were considered 
and it is decided tliat we are not in favor of their appeals. The com- 
mittee is denying it. What is your pleasure ?" 

And everybody got up, "Yes," down, so we were knocked out. So 
that meant we were entitled to appeal to the courts, which we did. 
We took an appeal to the court in New York, Long Island, and that 
is being 

Mr. Kennedy. That is still in the process ? 

Mr. W. WiLKENS. Yes. 

Mr. Kennedy. What about in Florida, did you go to Florida to see 
William DeKoning, too ? 

Mr. W. Wilkens, I did not go, but John DeKoning and Garrett 
Nagle went. 

Mr. Kennedy. I would like you to summarize for the committee 
what you feel are the undemocratic processes and procedures that have 
occurred in the union, and some of which are still going on. 

Mr. W. WiLKENS. I feel that the most serious violation is the cur- 
tailment of a rank-and-file's right to speak. You are nothing but a 
second-class citizen. Even though some of these men in the A and 
B local have been paying dues for 10 and 15 years, a guy can't even 
get up and make a vote. He can't say anything about the union. 
The only fellows that can vote are the engineers. 



IMPROPER ACTIVITIES EST THE LABOR FIELD 7783 

Mr. Kennedy. So the lack of the right to vote is one. 

Mr. W. WiLKENS. The lack of the right to vote. The lack of the 
right of freedom of speech, which is one of our freedoms, or supposed 
to be, anyhow. Another one is the goon system, the goon system of 
being at every meeting and abusing a man verbally, not even letting 
him speak, when an engineer can get up to talk or make a motion. 
He is so harassed by these goons that it is impossible. Another one 
is 

Senator Curtis. At that point, do those goons resort to violence? 

Mr. W. WiLKENs. No ; they don't have to, Senator. They have at 
times, in regards to Pete and a couple of others, but they don't have 
to. Put yourself in a member's position that gets up and tries to 
make a motion. He is on the floor. 

He stands up. Before he has 3 words out of his mouth, there are 
6 guys standing by him, calling him every vile name you can think 
of, and shouting, and the fellows in the back can't even hear the fellow 
making the motion. So by that time it is done with. DeKoning, 
Junior, who has been the chairman at most of our meetings, just grins, 
and he is as happy as a lark, because he loves this. He loves power, 
and he has certainly shown it down there in 138. It is impossible for 
a man to talk at the union meeting. 

Another one is the undemocratic policy of the international con- 
stitution in regards to trials. In the history of the International 
Union of Operating Engineers, I have read an awful lot of magazines 
which gave a statement of the trials that take place, and it shows the 
appeals of all of these different members. All you see at the bottom 
is "appeal denied," "appeal denied." It is a system throughout the 
whole international. 

I have never seen a case where it has been reversed, where they said 
to the guy "O. K., we will give you a second chance." There are no 
second chances in our miion. 

Senator Curtis. What is the procedure followed, at the local level, 
first? 

Mr. W. WiLKENS. At the local level is you are presented with a 
copy of charges. You are supposed to answer those charges wathin 
a couple of weeks. After answering those charges, DeKoning, junior, 
sends you a letter and says, "O. K., you are going on trial tonight. 
Be here." So you appear there. It is your privilege under the con- 
stitution to have your own attorney, that is, from within the rank 
and file. I will give you a good example. At my trial, or at Pete's, 
we had a couple of rank and file as our attorneys. We brought in a 
stack of newspapers. We brought in a stack of records. We brought 
in other papers pertaining to our case, which we wanted to support 
our defense with. The prosecutor is always Verner Sofield. He is 
one of the chief lieutenants of DeKoning. The other assistant prose- 
cutor is Jack Gunning, a business agent. The judge is William De- 
Koning, Jr. He sits here, and the trial starts. 

"Prosecutor: I want to look at this newspaper. Look at this pic- 
ture. I have a photo. Pete was sitting with Bill, and Bill was sitting 
with Pete. I want to submit this paper." 

"All right." 

"I want to submit this picture." 

"O. K." 



7784 IMPROPER ACTIVITIES IN THE LABOR FIEILD 

He gets all through submitting a pile like this. When it comes 
to Joe Blow, the rank and file, the prosecutor says : "I would like to 
submit" — and this pix)secutor says "That is no good. We are not 
interested in that. That is out of order." 

And that is denied. 

The next thing is "I would like to submit a newspaper." 

"We are not going to listen to this." 

That is denied. 

"Mr. Chairman, isn't there a chance for us to present " 

"No good. You can't do it." 

So you are either so tired and disgusted, after 3, 4, or 5 houi-s trying 
to submit evidence, which we were at one time — we got so disgusted 
and wrought up we walked out and let them do wliat they want to. 

But usually the procedure is that you are denied everything. And 
then he says "O. K." 

He picks up a paper that has a whole list of things written down, 
and he says, "With the power that is vested in me, I sentence you 
to 5- years expulsion and $650 fine, and you ain't going to use the 
facilities of this union for that period." 

He would say "That is the power that is vested in me." 

Everything is the power with this guy, Dekoning, Jr. It is not, as 
he says, a fraternal organization, because in a fraternal organization 
you would come on and say "This is your meeting, you are entitled to 
participate." 

It is not with this guy. He would say "You are out of order, sit 
down." That is the way the trial goes. 

The Chairman. You said he had the sentence already written out 
before the trial started ? 

Mr. W. WiLKEN. Yes, sir ; and he had a big piece of paper with the 
thing already written out, and he read it right off the paper. 

We thought we were entitled at a couple of trials to have a lawyer. 
The union lawyer was there, and we objected to it. That was per- 
fectly O. K., "honky dory," but we tried to get Bill Keating and Burny 
Fitzpatrick at one of our trials. That is not allowed. 

The Chairman. They could have an outside lawyer or the lawyer 
representing the union there to prosecute, but you couldn't have your 
lawyer ? 

Mr. W. WiLKEN. He didn't actually prosecute us, but he was right 
next door, and every once in a while Sofield would consult with him. 

The Chairman. He was aiding and assisting and abetting in your 
expulsion, and you couldn't have an outside lawyer ? 

Mr. W. WiLKEN. No, sir ; we were refused. Everytime we asked to 
have our lawyers, we were refused. I might point out at this time 
for the record that we have labor lawyers representing ours, because 
we are fighting for decent trade unions. William DeKoning has a 
good lawyer, but he is a criminal lawyer and not a labor lawyer, and 
if you are a union leader there is no need for having a criminal lawyer 
and you should have a labor lawyer. That is what we need in our 
union. 

The Chairman. I am not trying to draw that distinction, whether 
a lawyer is criminal or not. Some are called criminal lawyers when 
they represent people charged with crime. Some are criminals in 
fact, possibly. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7785 

Mr. W. WiLKEN. I didn't mean it in that light. 

The Chairman. I would like before we proceed any further to go 
back to this meeting here in Washington, where the old man got kicked 
in the belly. You were called next. I don't believe we ever finished 
that scene. I would like to carry it on through. 

Mr. W. WiLKEN. If it is all right, I would like Pete to explain it, 
because Pete is pretty good on this legal memory, and what took place. 

The Chairman. Counsel tells me that you did refer to what hap- 
pened thereafter. I probably was preoccupied with something else. 

Mr. Kennedy. If there are some more details, that is all right. 

The Chairman. Mr. Batalias, you were there, and you saw what 
preceded this just before you were called on. 

Mr. Batalias. The only complication that I would say really ex- 
isted was that Mr. Maloney was, naturally, assisted by counsel ; and 
he is experienced, and he tries to twist him up in doubletalk and 
technicalities. I, at all times, tried to confine myself to the require- 
ments of the constitution, and he tried to lead me away from those 
requirements. And when I insisted on it, that he stick to the con- 
stitution, he referred to me as being very obnoxious. So, at the final 
conclusion, we did get our appeal across. 

The Chairman. Were you permitted to testify ? 

Mr. Batalias. Yes, sir ; we were. 

The Chairman. Were you abused in any way ? 

Mr. Batalias. No, sir ; we were not. 

The Chairman. Physically, that is. 

Mr. Batalias. No, sir. 

The Chairman. You were not ? 

Mr. Batalias. No. 

The Chairman. You were not ? 

Mr. W. WiLKEN. The only thing that was close to that, we had a 
briefcase with us and DeKoning, junior, very excitedly grabbed the 
briefcase and he said, "These guys have a microphone in here, and I 
want you to examine all of their records. Open it up and see if it 
has a microphone or a bug in it." 

And we told them, "They can open up any briefcase we have," and 
we opened our pockets and told him to search us, too. We said, "We 
don't believe in having bugs and microphones, and we speak the truth 
and we don't need them." 

The Chairman. All right; what relief did you get from tliat meet- 
ing or that trial? 

Mr. W. WiLKEN. None whatsoever except that they very good, 
naturally ; reduced the fines from $7G0 down to $100 each, which we 
paid with a check, which was a protest check, which was signed that 
way. 

The Chairman. All right ; proceed. 

Mr. Kennedy. Who is the attorney for the union that participates 
in these trials that you have at the local ? 

Mr. W. WiLKEN. Well, they have two union attorneys to my knowl- 
edge, James J. Blake and Harry Kutner ; and I have witnessed Henry 
Kutner at some of these trials. 

James Blake has been at the union hall at times of meetings. 

Mr, Kennedy. Now, just going back, what was tlie name of the 
man who was kicked ? 

Mr. W. WiLKEN. Fred Wollins:. 



7786 IMPROPER ACTIVrriEIS IN THE LABOR FIELD 

Mr. Kennedy. W-o-l-l-i-n-g? 

Mr. W. WiLKEN. Yes ; I believe so. From a Virginia local. 

The CHAiRMAisr. Did he have counsel or anyone there to represent 
him? 

Mr. W. WiLKEN. He was there by himself. 

Mr. Kennedy. Was there any other incident on that point? 

Mr. W, "WiLKEN. I would like to point out in reference to a Judge 
Byers' decision, where he upheld our appeal and that was in regard 
to the matter where Lou Wilkins had a copy of the welfare-fund 
report and showed it to our lawyer and DeKoning, junior, made a 
big stink over it and brought him up on charges and he was going 
to bring him up on a trial. 

Mr. Kennedy. You will have to explain that. 

Mr. W. Wilken. Well, Judge Byers in part of his decision said, 
^'I can readily see about the presidency or the power of the presi- 
dency," and he read from the constitution and the language in which 
article XXIII, subdivision (4) , is couched, is : 

Such as to cover nearly any action on the part of a member of the union 
which the presiding officer might choose to conrlemn, because if an individual 
member of a local objected to any ruling of the presiding officer, he might thereby 
create dissention among the members. 

Mr. Kennedy. The judge pointed out that the constitution of the 
international was written in such terms that the president of a local 
could bring almost any charge or could bring a charge against any 
individual who opposed him and thereby exclude him from the union. 
It was couched in such general terms, the constitution of the inter- 
national ; is that right ? 

Mr. W. Wilken. True That is true. 

Mr. Kennedy. That is what he objected to ? 

Mr. W. Wilken. That is right. 

May I say one more thing? You asked me to point out a few 
things about what was wrong with the union. One of the most 
serious things wrong is the financial end of the union. Of all of the 
funds in the union, we have no accounting of it. We had no ac- 
counting of any union fund up to the time we instituted an NLRB 
action and at that time we got a couple of reports. But the moneys 
of the union, the expenditures, who gets what salary, and who gets 
what expenses, and the phone bills, and any disbursements, we are 
all in the dark about it. 

Mr. Kennedy. Have you requested to see them ? 

Mr. W. Wilken. We have requested many times. John DeKoning 
at one meeting requested the treasurer to see the books and he even 
asked him what color the books were. We have never actually known 
how much money we have in our union. 

Mr. Kennedy. You never have been able to see the books? 

Mr. W. Wilkens. No, sir. 

Mr. Kennedy. Does he submit a financial statement to you ? 

Mr. W. Wilkens. He reads a financial statement once in a while, 
which is read off. 

Now our financial report should be very long and detailed because of the work 
that is done out there. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7787 

And he may have six pages of financial reports to read, and it is read 
in this manner : 

$100,000 is for and this section is 

It is done like that. It is done in 2 minutes, and nobody knows 
•whether he had $1,000 figures or $1, or $1 million. It is all a complete 
mystery to us in the welfare fund and the defense fund, and general 
fund, or any other moneys in the union. 

Mr. Kennedy. Wlio reads the financial statement ? 

Mr. W. WiLKENS. A fellow by the name of Tom O'Donnell. He is 
either an auditor or trustee, or something like that. 

Mr. Kennedy. But have you ever requested permission to see the 
books yourself ? 

Mr. W. WiLKENs. Yes, sir. 

Mr. Kennedy. Have you been given that permission ? 

Mr. W. WiLKEN. In almost every meeting we have made the request 
and we have never been given that permission. 

Mr. Kennedy. So as I understand it, up until at least a short time 
ago you weren't able to see the contracts under which you work and 
you haven't been able to see the books of the local which control your 
finances, to show how your money is spent ; is that right ? 

Mr. W. WiLKENS. For 23 years, I would say, we never even received 
a copy of the constitution. A lot of men did not even know there was 
a constitution of the international. 

We have never gotten a copy of the working agreement, and we 
have never gotten copies of the financial reports. The closest we ever 
got to actually getting an individual copy of the financial report was 
when someone said, "There is a violation of the Taft-Hartley law 
there ; we will post it up in the union hall." And it was never done. 

There is one more point, and I probably am going to be shut off 
here, I am talking so. One point I would like to bring out is this: 
If you are running a union on the up and up, there is no need for a 
wooden panel where a man comes in and sits in a 4-by-4 room and 
freezes himself waiting there, and he has to knock on what we call a 
Gestapo panel, a wooden panel instead of a clear glass window, and 
he slides it up, this fellow who is there, Sofeld or DeKoning, and says, 
"What do you want ?" "I am out of work." They say, "There is no 
work for you," and down it comes. 

But if he recognizes you or you are one of the boys, they press an 
electric buzzer, and they let you in the office. 

There is no dayroom there, and no glass windows where you can at 
least see your offices. Half of the time you get there and you don't 
even know who is in the office. So everything is a mystery in local 138. 

Senator Curtis. How big is that chamber ? 

Mr. W. WiLKENS. I would say it is about 5 feet this way, and 
maybe 10 feet this way, and for years and years there was only 1 or 2 
wooden folding chairs there. It is an old wooden building, an old 
wooden room. 

Senator Curtis. Is there any heat in that room ? 

Mr. W. WiLKENS. There was no heat, and then I finally put a little 
radiator in there, but actually there is no heat, and the men sit out 
in their cars and they run the motors of the car with their heaters on 
to keep warm. That was one of the little things that we asked 
DeKoning to do. xYnd we asked for a dayroom, a place where the 



7788 . IMPROPER ACTIVITIES INP THE LABOR FIELD 

men could at least come in and sit down. That was refused. We 
even asked for a toilet, the privilege of going to the toilet, and we 
couldn't go. So the men have to go around the barn, and down the 
end of the barn and out there. That is where you had to go. They 
wouldn't even grant us that request. 

Senator Curtis. All of this happened in the State of New York? 

Mr. W. WiLKENS. Yes, sir; believe it or not. It happened right 
on Long Island, N. Y. 

I might point this out, that most of the delegates ran around in a 
Buick or Ford or Plymouth, but all of our delegates run around in 
Chrysler Imperials. We could save a lot of money if we could cut 
that down, too. 

Mr. Kennedy. Now, you have to go to the union to get your job; 
is that right ? 

Mr. W. WiLKENS. Yes, sir. 

Mr. Kennedy. You can't just go to an employer and see if he wants 
help or assistance and go to work there, if he needs it ; is that right ? 

Mr. W. WiLKENS. You never have been allowed to go to an em- 
ployer ; you had to go to the union office. 

Mr. Kennedy. So it is a union hiring hall, and you have to go to 
the union and the union is the one who decides whether you are going 
to get a job or not ? 

Mr. W. WiLKENS. That is true. 

Mr, Kennedy. And they are the ones, and therefore they can give 
their favorite jobs to those who go along with their policies. 

Mr. W. WiLKENS. That is true. 

Mr. Kennedy. Is that another matter that you have objected to? 

Mr. W. WiLKENS. Yes; he can tell you that you are going to eat 
oatmeal, or you are going to eat steak every day in the year, and some 
men make $15,000 a year with DeKoning, and some men go home with 
$4,000 or $5,000 a year. It is all according to if you are in favor or 
disfavor. 

Mr. Kennedy, So for you people who are out of favor and have 
been fighting him, you can easily be deprived of jobs, or at least be 
deprived of good jobs, and often of any jobs at all. 

Mr. W. WiLKENS. Yes, and to point that out, there is a job going 
out there, a big Government job, and a good paying job, and 2 or 3 
of the goons are out there working, and you don't see any of our 
fellows out there, or any of the old-time members. You take a fellow 
in our union and he could be a charter member, 20 years in the union, 
and he could go to that office and ask for a job and be kept sitting in 
that room for 2 or 3 weeks on end, and a fellow with a permit, maybe 
he is a bookie, or ex-bartender, or works at the racetrack, and he gets 
a job right away. 

Very smoothly, Sofield never keeps a record of his work list, and 
he puts it on a piece of scrap paper and that is the end of it. 

Mr. Kennedy. I want to know, have you ever heard of Albert 
Ackalitis? 

Mr. W. WiLKENS. Yes, I have, 

Mr. Kennedy. Do you know anything about Albert Ackalitis? 

Mr. W. WiLKENS. As far as his record is concerned, I have read 
in the newspaper what it is, and I know he is not a nice fellow. I 
have never met him pei-sonally, but I do know he is a member of local 
138 in the permit status. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7789 

Mr. Kennedy. Do you know he has a criminal record dating back 
to 1933, inchiding arrests for receiving stolen property, assault and 
robbery, attempted burglary, and unlawful possession of firearms. 

Mr. W. WiLKENS. I have heard of that ; yes, sir. 

Mr. Kennedy. He was a member of the so-called Arsenal Mob, and 
was sentenced in 1936 to 7 to 14 years in the State prison, after being 
convicted for violation of possession of machine guns. 

Mr. W. WiLKENs. I have heard of that ; yes. 

Mr. Kennedy. He was returned to Snig Sing, on November 10, 
1950, and as a parole violator. Did you Imow he was kicked off the 
docks, and wasn't allowed to have any work on the docks in New York? 

Mr. W. WiLKENS. I have read of this. 

Mr. Kennedy. Because of his activities down there? 

Mr. W. WiLKENS. Yes. 

Mr. Kennedy. Did you say he is now in local 138, in a permit class '^ 

Mr. W. WiLKENS. He was given a permit by DeKoning, junior, 
and he worked on a Government job, the Nike site out in Lido Beach, 
and I believe he worked there under an assumed name. I believe at 
the ])resent date he is working on a big bank job out there in Roosevelt 
Field. 

Mr. Kennedy. What kind of a job? 

Mr. W. WiLKENS. A big bank job, one of the biggest banks they 
are going to have on Long Island. I believe it is the biggest bank 
on Long Island, and he has a job there. This is the fellow that came 
on the job where Gary Nagle was working and he refused to work 
with Gary Nagle because he is a member of the reform group. 

Mr. Kennedy. Ackalitis refused to work with Nagle? 

Mr. W. WiLKENs. Yes, sir. 

Mr. Kennedy. And he walked off the job because Nagle was a 
member of the reform group ? 

Mr. W. WiLKENS. Yes, sir. 

Senator Curtis. What do you mean by the fact he is a permit 
worker ? 

Mr. W. WiLKENS. He has a permit, as was explained here. A per- 
mit is like a piece of paper, and you pay 50 cents a day for the priv- 
ilege of working, and that is what a permit is. 

Mr. Batalias. Can I explain that. Senator ? 

When Ackalitis appeared on the scene in Long Island, I believe he 
was a parole violator. There was a warrant out for his arrest. He 
w^as put on the payroll of the Government job in Lido Beach, under 
an assumed name. This was done through the union office. His pay 
was sent to the union office, under this assumed name, and later on he 
appeared on the job to work on the job steady, covering a push-button 
job. When he appeared on the job, he was picked up. 

Later on, he was given a book in the local union, personally by Wil- 
liam C. DeKoning, Jr. 

The Chairman. Is that a voting status ? 

Mr. Batalias. No, he was brought in through the back door. 

Mr. Kennedy. What does that mean ? 

Mr. Batalias. He was given a B book, and if you go in for a regular 
book, like the A book, or the full parent-body book, you have to be 
brought before the membership. 

The Chairman. He was given a B book and that took him off a pec- 
mit status ? 



7790 IMPROPER ACTIVITIES D«r THE LABOR FTEILD 

Mr. Batalias. Yes, sir. 

The Chairman, That gave him a right to work, by paying his dues ? 

Mr. Batalias. That is correct. 

The Chairman. Prior to that he had been on a permit status, where 
he had to pay $1.50 a day, or $2.50 a week ? 

Mr. Batalias. Let me remind you that Albert Ackalitis is not an 
engineer, or not an operating engineer, and he operates in other fields. 

Senator Curtis. Of course, it is my firm conviction that it is a vio- 
lation of one of the most sacred rights an American can have, that 
anyone else should have power over his right to work. The right to 
work is a civil right, just as precious as any of the other civil rights. 
I am opposed to any union or any boss or anybody exercising that 
authority if they are good men and exercise it wisely. It is too much 
power for someone else to have over another human being. 

The Chairman. We will proceed. 

Mr. Kennedy. Have you finished ? 

I would like to ask Mr. John DeKoning some questions. 

The Chairman, Come around, Mr. DeKoning. 

Mr. Kennedy. Just for the record, that is spelled A-c-k-a-1-i-t-i-s. 
He is also known as Edward Johnson. 

Mr, IvENNEDY. Mr. DeKoning, you have been in the union for 
how long ? 

Mr. J. DeKoning. I have been a member of the International Union 
of Operating Engineers since 1936, 

Mr, Kennedy, And you are a 

Mr, J, DeKoning, I am his cousin, 

Mr, Kennedy. William DeKoning, Sr., was your uncle ? 

Mr. DeKoning, My uncle, yes. 

Mr, Kennedy, Now, you were a part of the DeKoning operation^ 
I understand, up to about 1952 or 1953 or 1954 ? 

Mr, J. DeKoning. That is right, and I am not too proud of it. 

Mr. Kennedy. Will you tell us what happened that you broke with 
them? 

Mr. J. DeKoning. I was appointed business representative of local 
138 in 1951, I was assigned to the Suffolk area. 

At that time, a tremendous building boom was in Long Island, and 
in the Suffolk area particularly, and I was sent out there to organize. 

Well, I worked in the trade all of my life, and I felt that 1 knew 
the problems of the workingman and I was told that I had done a 
good job. 

There were lots of things in the union I did not like, but the union, 
the International Union of Operating Engineers, there are only two 
things you can do if you don't like it. Either you can quit or keep 
your mouth shut. 

So I went along with the job and did my job and I tried not to 
make any enemies, and I tried to make friends. Possibly I was get- 
ting too popular, I made a good many good friends, and the excite- 
ment started with all of the indictments at the racetrack. 

The biggest surprise to me in my life, up to that point, I was in 
Hays, Kans,, on a first vacation I ever had, and I got a telephone call 
from my brother, informing me that I was indicted for five counts of 
grand larceny. So I said to my brother, "Well, if I liad a piece of 
the pie, I wouldn't hold to this, but I don't even know what this is all 
about." "Well," he said "you had better get back here." 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7791 

So I came back and there was quite a mess in Nassau at that time, 
and all of these indictments coming out, and the grand jury was in 
session. I tried in vain to speak to the union lawyer, and 1 tried to 
speak to the district attorney, and to find out the particulars of these 
counts of grand larceny that I was indicted for. So 1 gradually 
found out what it was, the situation that I was indicted on, and the 
indictment against myself and the other officers of the union were 
dropped when DeKoning, Sr., copped a plea and took the 18 months 
in jail. 

I believe Mr. Batalias described the situation of the election of my- 
self, as business representative. 

Mr. Kennedy. Why did you break then with William DeKoning, 
and William DeKoning, Jr. i 

Mr. J. DeKoning. VV^ell, I never did like the situation but I got 
the assurance of my wife, and I told her there were only tw o avenues 
facing me, and I said, "I am going to fight them. It is about time 
somebody did." 

So when I saw that I was supposed to be a member of the family, 
and in fact I was a business representative, and I had been closely 
attached and associated with them in a business way, then I wanted 
to see if the men thought enough of me to elect me. 

So the way the procedure of an election in 138 was, there was never 
any opposition. But I felt that with Senior DeKoning taking a little 
vacation, there was a possibility that things would change in tlie local, 
and many new reforms could be put into the union to make it a good 
imion. 

Mr. Kennedy. Were you objecting at that time to the fact that the 
contractors did not have copies of the contracts themselves? Was 
that one of the objections ? 

Mr. J. DeKoning. Well, that always amazed me, that I was even a 
business representative and as far as the contracts were concerned the 
membership and the contractors were completely in the dark over the 
contract. 

Mr. I^nnedy. The men did not see the contract, and the contractors 
themselves did not have a copy of the contract ? 

Mr. J. DeKoning. I would dare to say a majority of the contractors 
did not ever have a copy of the contract. 

Mr. Kennedy. And could there be favors given to certain con- 
tractors, and was that possible mider the system that you operated 
under ? 

Mr. J. DeKoning. Absolutely. 

Mr. Kennedy. Would you just tell briefly how that could work 
out? 

Mr. J. DeKoning. Well, the construction industry is a highly com- 
petive field and naturally the cost of labor is the main item of figuring 
a job. In Long Island, there is one large contractor and several 
smaller contractors. The county and the State, and particularly the 
county, was doing an awful lot of work, and a lot of sewer work, and 
in the sewer work it involves the use of a lot of the smaller type equip- 
ment that does not require skill. It is commonly called cream jobs, 
or pushbutton jobs. 

The union through its jurisdiction has the authority to adjudicate 
how many men should be on a job and the conditions of the job. The 



7792 IMPROPEIR ACTIVITIES IN THE LABOR FIEILD 

union in collusion with the contractors of the Nassau-Suffolk area, 
the favorite ones, they would interpret the contract in a soft light. 

In other words, the best way to describe it, is if there is a million- 
dollar job, and if a firm like Hendrickson was figuring the job, they 
could write their own ticket. They could do the job with no particular 
problem, with maybe 50 percent less required help than an outside 
contractor would. 

(The following members of the committee were present: Senators 
McClellan and Curtis.) 

Mr. Kennedy. In summary, if an outside contractor came in and 
there were 10 machines, the union could say they needed 10 men, while 
with a favored contractor, they could say that 1 man could do the job 
for 10 machines, or 2 men, or 5 ? 

Mr. J. DeKoning. That is correct. 

Mr. Kennedy. And they could cut down on the labor ? 

Mr. J. DeKoning. That is right. 

Mr. Kennedy. And that could be followed through on other jobs 
and activities taking place? 

Mr. J. DeKoning. That is right. 

Mr. Kennedy. And in that manner, give favors to those contractors 
close to the leadership? 

Mr. J. DeKoning. That is right. 

Mr. Kennedy. And also furnishing them men who were more com- 
petent in their jobs? 

Mr. J. DeKoning. That is correct. 

Mr. Ivennedy. The contractors took an active part in the operation 
of the union ; is that right? 

Mr. J. DeKoning. Definitely. 

Mr. Kennedy. For instance, the Hendrickson Bros., was that an 
active company ? 

Mr. J. DeKoning. Hendrickson, I would say, does 50 percent of 
the work in Nassau County. 

Mr. Kennedy. Were they active in the union also? 

Mr. J. DeKoning. Milton Hendrickson, the president of the firm 
at that time, he was, at that time, though he took a withdrawal card, 
active in 138. 

Mr. Kennedy. He was active in the union as well as being the big- 
contractor in the county ? 

Mr. J. DeKoning. Yes. He was the master mechanic for the Hen- 
drickson firm for many years. 

Mr. Kennedy. Was there ever a time when representatives of the 
contractors who were in the union served on the negotiating committee 
with contractors? 

Mr. J. DeKoning. Yes. 

Mr. Kennedy. Did that ever happen as far as the Hendricksons 
were concerned? 

Mr. J. DeKoning. Well, I recall about 1952 there was an increase 
in all the building trades coming up in the summer months, in July, 
and I came into the union headquarters and I was instructed by 
William, Senior, to stick around; we were having a negotiating meet- 
ing with the contractors. We went into the Hawaiian Koom, and there 
was 7 or 8 members of the Nassau Contractors Association there, and 
a few of the master mechanics 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7793 

Mr. Kennedy. Just on this point. During those negotiations, were 
there representatives of Hendrickson on the negotiating committee 
for the union ? 

Mr. J. DeKoning. Yes. 

Mr. Kennedy. Hendrickson's son? 

Mr. J. DeKoning. Arthur Hendrickson sat for the contractors ; and, 
his son Milton sat at the same table. 

Mr. Kennedy. As a representative 

Mr. J. DeKoning. For the engineers. 

Mr. Kennedy. So you had the same family sitting on the same 
side of the table? 

Mr. J. DeKoning. That is correct. 

Mr. Kennedy. One for the contractors and one for the union ? 

Mr. J. DeKoning. That is correct. 

Senator Curtis. How long has it been that contractors could get into 
the union ? 

Mr. J. DeKoning. When I became a member of the union, local 
138, they were in the union. 

Senator Curtis. Have there been any new ones come in since that 
time? 

Mr. J. DeKoning. Yes. 

Senator Curtis. Did they get in the same way as these men here that 
have testified today have tried to get in ? 

Mr. J. DeKoning. No ; it is a little different situation there. It is 
a complex thing, with a lot of individuals who own 1 or 2 pieces of 
equipment. You classify them as owner-operators. If a fellow owns 
a bulldozer or a little truck, for him to Avork on these different jobs, 
he has to be a member of the union, so he goes down and joins the 
union. Myself, I feel that is a problem that could be worked out. He 
can be a union man, but at the same time he is still the boss. A good 
many unions have that provided for in their contract and in their 
hylaws. He don't interfere with the administration of the union. 

Senator Curtis. Do contractors other than these owners of small 
amounts of equipment, sort of owner-operators, have they joined the 
union in your time ? 

Mr. J. DeKoning. Yes. 

Senator Curtis. Large contractors ? 

Mr. J. DeKoning. Yes, certainly. 

Senator Curtis. They couldn't get in the union without the per- 
mission of the union bosses, could they ? 

Mr. J. DeKoning. Nobody got in that union without the right 
■connection. 

Senator Curtis. I do not excuse them for the collusion. Certainly 
it is worked on both sides of the street. 

Mr. J. DeKoning. There are quite a few big firms in Nassau and 
Suffolk where the president of the firm is also his own master me- 
chanic and shop steward. We have several there. There is Charley 
Davis, from Davis Construction, Dick Murphy, from Murphy Con- 
struction, and there was Milton Hendrickson. There are three cases. 
They are their own master mechanic and shop steward, besides being 
the boss. 

Mr. Kennedy. Mr. DeKoning, I have one last matter. Did you 
try to bring this to Mr. William Maloney's attention also? 

21243— 58— pt. 19 19 



7794 IMPROPER ACTIVITIES EST THE LABOR FIELD 

Mr. J. DeKoning. Yes. I believe it was in the winter of 1955 that 
myself and Garrett Nagle, and we met Mr. Lou Wilkens in Florida, 
we went down there with the attempt to try to speak to Mr. Maloney. 
Mr. Maloney was down in that fancy hotel in Miami Beach. I think 
it is the Hotel Martinique, where they were having a general executive 
board session. 

We went down and tried to have an interview, a few minutes, with 
Mr. Maloney, and it was impossible. But we did catch up with the 
eastern district representative, Joe Delaney, and he said he would use 
his influence to try to arrange a meeting with Maloney. That didn't 
work out. There was always some excuse, Maloney was busy, or he 
has a committee here, or he is taking a sun bath. Lord knows what he 
was doing. We were walking down the street, the main street there 
in Miami Beach, and we seen Mr. Maloney walking down the street 
with Mr. Wliarton. We walked up to him and we spoke to him. Gary 
Nagle spoke to him, and he said "Mr. Maloney, we are down here, and 
to us it is very important, it is our jobs and the fellows back home. 
We want to straighten out the situation in local 138. We want a 
meeting. We want to sit down with you and Delaney and see what 
can be done here." 

So he promised us that the next morning he would have a meeting 
with us, at 9 o'clock. Mr. Kennedy, I got that a little wrong. De- 
laney did not come into the picture until after we did see Mr. Maloney. 
He said, "Joe Delaney is not in yet. He is out in Arizona. He will 
be in here tomorrow and we will have a meeting tomorrow morning." 

The next day, Delaney did not come, and we had to stay there the 
next day until Delaney did come. We kept after Delaney to use his 
influence, and he told us pointblank that Maloney didn't want to 
see us. 

I felt I didn't take a trip to Florida for nothing, where a lot of fel- 
lows had to chip in and go through hardship, to go down there and look 
at the sun. I insisted on seeing Maloney. He told me what suite he was 
in. I went up the elevator, found the suite, and knocked on the door. 
There was J. Turner, and a few more of the international people sit- 
ting in there, and Maloney was sitting there. 

I said, "Mr. Maloney, I would like to have about 5 minutes of your 
time." 

He said, "That is all I can give you." 

So we walked into the bedroom. I said, "Wliat are you going to do 
in local 138?" 

He said, "I heard the other side of the story. I don't want to hear 
yours." 

I was really hurt. I felt the best thing to do was to get out of here 
fast, before I lost my Irish temper. I went out the door, and I almost 
took the door off the hinges when I left, and that is the last time I seen 
Mr. Maloney. 

Mr. Kennedy. So he didn't do anything about it ? 

Mr. J. DeKoning. Nothing. 

The Chairman. Is there anything further ? 

Mr. Kennedy. Mr. Chairman, I would like to be able to recall these 
gentlemen. I have another witness I would like to call at this time. 
I would like to call Mr. Van Zanten. 

The Chairman. Doctor, will you be sworn, please ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7795 

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

Reverend Van Zanten. I do. 

TESTIMONY OF REV. JOHN W. VAN ZANTEN 

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

Reverend Van Zanten. Rev. John W. Van Zanten, pastor of the- 
Rosslyn Presbyterian Church, 159 Elm Street, Rosslyn Heights, N. Y. ; 
clergyman. 

The Chairman. Do you waive the right of comisel, do you ? 

Reverend Van Zanten. Yes, indeed. 

The Chairman. Thank you. Proceed, Mr. Kennedy. 

Mr. Kennedy. Dr. Van Zanten, you and other members of the clergy 
took an interest in this situation out in Long Island in connection with 
local 138? 

Reverend Van Zanten. Yes, indeed. 

Mr. IvENNEDY. Could you tell the committee how you first became 
interested m it, and then what events occurred after that ? 

Reverend Van Zanten. Well, in September of 1955, members of 
the Operating Engineers, local union 138, came to the churches of the 
area in the county for some help. They wanted to tell a story about 
what was going on within their union. They came to us because they 
had tried to tell tlie story within the union through their international 
officers and had failed, and wanted someone to listen to them, to see 
what could be done within the community. They came to the Nassau 
County Council of Churches. I was at that time chairman of the 
industrial relations committee. Therefore, it was placed in m^^ hands. 
We talked to the members of this group. We called them a minority 
group within this union. Then they went also to the other clergy- 
men \yithin our area, including Archdeacon Saunders, of the Episco- 
pal diocese of Long Island, and, with him, we formed an interfaith 
committee. This committee was made up of representatives of the 
Jewish group, the Episcopal group, and our Nassau County Council 
of Churches. 

Mr. Kennedy. Would you tell us who they were ? 

Reverend Van Zanten. The members of the group were Arch- 
deacon Saunders, Kermit Nord, a I^resbyterian mmister in Mineola, 
Kenneth Grady, a Methodist minister, Rabbi Sandrow, and George 
Kuhlke who represented the Episcopal diocese as a layman. 

We also invited the Catholic diocese to be represented on the com- 
mittee. They accepted our invitation, but evidently thought later not 
to send a representative. 

AVe went ahead with the Jewish and Protestant groups. We set up 
tlie hearings with a counsel and the court stenographer to take down 
whatever should be testified. 

On January 18, 1956, we started our hearings. The union heard 
of the fact that this was going to take place, and they wrote us a letter, 
saying they would like very much to tell their side of the story and 
be a part of the hearing. 

We were very glad^to have this letter, and hoped that they would 
go ahead with us. However, when the actual hearings began, they 



7796 IMPROPER ACTIVITIES IN THE LABOR FIEILD 

were represented by their attorney and his assistants who suggested 
various changes in our conditions and procedures which had i^en es- 
tablished. We felt this was not in line with what we wanted to do, 
and, therefore, on advice of our counsel, we continued to accept our 
conditions and procedures, and they then withdrew from the hearing 
and said they would not like to be a part of it. 

Mr. Kennedy. Who represented them at that time ? 

Keverend Van Zanten. James Blake, I believe, was their attorney, 
and his assistants. I don't believe he himself appeared before us. His 
assistants came and gave the message for us. 

Mr. Kennedy. They would not accept the regulations and rules that 
you established among yourselves as to procedure ? 

Reverend Van Zanten. It came down to one point, actually. We 
had our own court stenographer who was going to take the record, the 
hearing. They wanted to have their stenographer there also taking 
down the information as we gathered it. 

Mr. Kennedy. They didn't have confidence in this group's court 
stenographer ? 

Reverend Van Zanten. I don't Imow. But they wanted their own, 
and the chairman of our cormnittee. Archdeacon Saunders decided that 
we should have just 1 set of records, not 2, and they said they could 
see our records at the end of each day, if they so wished, but that it 
would be better if we had just 1 secretary taking down the form, 
and we wouldn't have 2 records, maybe not jibing finally. 

So they withdrew from our hearing. 

Mr. Kennedy. They would not accept that ? 

Reverend Van Zanten. They would not. The members of the 
minority group within the union then gave their testimony and we 
heard it over a period of 4 or 5 days. I would like to say at this point 
that later on in January we received an invitation from the union to 
talk with them also, with their board. So on March 8, much later, 
we were able to sit down with the union officials and talk to them. 

As you have heard today, the testimony of the various men who have 
been here, we heard pretty much the same story. Would you like me 
to sort of summarize what we had heard ? 

Mr. Kennedy. Yes. 

Reverend Van Zanten. These are some of the high points. 

We have a full record which we have sent to your office, a report 
that we made at the time, which you have. The testifying that we 
heard was to the ejffect that supervisory personnel were members, actu- 
ally, of the union, voting in the union meetings, master mechanics, 
supervisors, and contractors were part of the union. 

There was discrimination in the hiring practices of the union in a 
political sense, that if you stayed in line and did what you were sup- 
posed to do, you got a good job, but otherwise you didn't. 

In many cases, permit men were described rather than regular mem- 
bers of the union, some of them not getting jobs; that the rank and 
file members were never given copies of their working agreement. 

In fact, it was suggested that perhaps even no such thing existed. 
As far as their welfare funds were concerned, the rank and file of the 
union did not know the amount of these funds or the method of admin- 
istration. They did not receive regular reports; that the union's 
executive board was made up generally of master mechanics, super- 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7797 

visors, and officers of the union, and contractors, and the rank and file 
members were not represented in their own leadership. 

It was told to us that parliamentary procedure was not followed 
in the meetings, that the agenda was not followed in the particular 
state of the 13th, 16th, and 18th order of business, which were often 
not called for, and they were ignored in the meetings. 

I think you know from your information what those orders of 
business are. That master mechanics were acting as shop stewards, 
and since they could hire and fire the men, we wondei-ed whetlier they 
were representing the men or representing the employers. We dis- 
covered from what they told us that the international union had 
refused to hear them, to hear their complaints, or to interfere in these 
various difficulties they were having, particularly those things that 
ignored their own constitution. 

We had our conference with the leaders of the union. They asked 
that we not be represented at that meeting with our counsel, so he 
was not present with us, nor was their lawyer present. It was an 
informal gathering in which we brought up these various items and 
asked for their opinion about it. 

I would say that we came to the same answer over and over again 
which perhaps you have already run into, that it was represented to 
us that this was a fraternity, and, therefore, the members could run 
it the way they wished, that a man did not become part of the parent 
body because of his ability, but because he was acceptable, personally 
and otherwise, to the members. This seemed to be a very important 
point in the whole matter, the matter if it being a fraternity. 

Mr. Kennedy. Wlio was stressing that? 

Reverend Van Zanten. The officers of the union. 

Mr. Kennedy. They stressed the fact this was a fraternity, and they 
could keep out people whose personalities they did not like ? 

Reverend Van Zanten. Yes, that it was that tyjje of an organiza- 
tion, not a business type of organization, where, if a man had the 
proper background, knowledge, ability, that he would get a job. 

We have other points which are in our report, but I will skip them. 
At the beginning of this matter, the whole business of the hearing, 
our counsel asked if the union would allow us to send in an accounting 
firm to look at their books, and they replied to us by letter that they 
had their own accounting firm which was a respectable firm, and that 
they did the accounting, and, therefore, that was impossible. 

They offered, when we were with them, to let them look at any- 
thing we wanted to see, but, of course, we had no counsel and no 
accountant with us. 

Therefore, we felt that our looking at the books would be ridiculous; 
a waste of time. So we spent our time talking with them. We came 
to some conclusions which are also in this report. To summarize a 
few of them : 

It seemed to us in looking over this matter that there is obviously 
a struggle for power going on inside of this union. There is a feeling 
on the part of the leaders of the union, as they expressed it to us, 
was that this minority group saw that there was a vacuum for power. 

Mr. DeKoning, senior, was out of the picture for a while; his son 
was not allowed to be in the union for a time, and it looked as if an- 
other group might take over, and this group had appeared at this 



7798 IMPROPE'R ACTIVITTES IN THE LABOR FIEM) 

time. This may be true. We did not know, but we feit that we as 
a group of clergymen, representing the churches of the community, 
were concerned for the social, the economic and the moral aspects 
of the situation, regardless of the personal motives involved. 

We have discovered in our community of Nassau County a great 
deal of fear in the working community. In talking to local men who 
are either small contractors or men who are part of the operating 
engineers, we discovered that they were afraid to speak out. 

They were afraid that they would lose their jobs. As some of 
these men have said to us when we discussed it with them, "I have 
a wife and children. I can't stand up against this." 

We therefore felt that this group, tliis small group of men, in the 
minority group within the union, are very brave men, and very strong 
men, and we felt that they ought to have a hearing on what they had 
to say. 

So we made certain recommendations, which are in this report we 
have sent to you. Among them are these : That the supervisory per- 
sonnel be separated from the rank and file in their meetings, so that 
you have a union meeting with the men speaking for themselves and 
not being afraid ; that their nominations for office, their nominating 
committees, their actual elections be by secret ballot not by a shout or 
hand vote; that their hiring practices be reformed and brought in 
line with the regulation practices in the best unions in the country; 
that each member be given a copy of his working agreement ; that the 
shop stew^ards on the various jobs be members of the rank and file 
and not members of the management side; that information on fi- 
nances be given to all of the rank and file regularly throughout the 
year. 

We heard, as you did, these men. We tried to talk to both sides. 
We feel that this is a situation in our community which must be 
straightened out, and we, therefore, appeal to this committee to do 
your best to help us. 

The Chairman. Why do you feel the situation is so bad ? 

Reverend Van Zanten. Because of this sense of fear that is in 
our community, first of all. We don't like the fact that men are afraid 
to speak their minds. 

The Chairman. When you speak of a sense of fear, do you mean 
that it has been instilled into these working people, the rank-and-file 
people, and the small operator, that they either lose their job or lose 
their contract, or lose their right to work, unless they go along with 
the present leadership ? 

Reverend Van Zanten. This is the impression that we received 
from the people in the community. 

The Chairman. In other words, you feel that this union is run by 
a dictatorship, either one man or a small group of men ? 

Reverend Van Zanten. We feel there is dictatorship involved. 

The Chairman. Do you find in this fear you described the element 
of physical fear, of violence ? 

Reverend Van Zanten. I think it is mainly a fear of losing their 
jobs. 

Can I say something about the other side of the picture a little? 

The Chairman. Yes. You feel it is an economic fear ? 

Reverend Van Zanten. I think it is an economic fear. Person- 
ally, and this, of course, is my own feeling about the matter, I have 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7799 

met young Bill DeKoning, and have talked with him, and I doirt 
feel that he is a bad man. I think he is canght in the middki of this 
situation, aiid that there has been physical violence as you have heard 
from certain members, but this has* been a long struggle in Nassau 
County. His father started at the beginning of the labor movement 
and fought his way through in times wlien you had to be rough and 
tough. 

The time for that is over. Some of the men haven't found that 
out. They are still in the middle of it. There is a sense of rougliness 
and toughness and, as w^e have said, a sense of dictatorship involved 
here. We feel that men are being manipulated. We look at this 
from a religious standpoint, and we say tliese men are created in the 
image of God, that they have to have the respect of their fellow 
men, particularly the men whom they depend upon for jobs, and 
it is important that this be set straight in our community, so that 
men do work, they are not afraid, they can speak their minds, they 
liave the freedom that the other members of the community have. 

That is why we as ministers, rabbis, are involved in this, because 
we feel human rights are being denied. We want it investigated, if 
we can. 

The Chairman. That is being denied to the laboring man, the man 
who is the rank-and-file member, who is having to pay his dues in 
order to have a job ? 

Reverend Van Zanten. That is wdiat we feel. 

The Chairman. Did you say you talked to the other side? 

Reverend Van Zanten. Yes. We had two conferences with the 
officers, the executive board. 

The Chairman. Were they able, by their explanation, to remove 
any doubt from your mind that this was being run as a democratic 
institution, or did their answers and their conversations further con- 
vince you that it is a fraternity in the sense that only the favored get 
the advantages of the union ? 

Reverend Van Zanten. It was definitely pointed out to us that 
this was a fraternity. This was the answer to many of our questions 
about why isn't so and so a member of your parent body, he has the 
qualifications, he can run the machinery, why isn't he "there ? 

It was said "This is a fraternity. We elect to membership those 
we wish to have in the fraternity." 

The Chairman. In other words, you have to get into the fraternity, 
as I understand the testimony we Jiave heard, but you have voting 
rights. 

Reverend Van Zanten. Into the parent body. 

The Chairman. That is what they speak of, I assume, and it is 
almost synonymous with fraternity. 

Reverend Van Zanten. Yes. 

The Chairman. And the fraternity qualifications are fellowship, 
cooperation, and so forth, with tlie leaders. It does not relate at all 
to the man's skill, to the fact that he has been a devoted union member 
for 20 years, constantly a member, and paid his dues, and was able 
to work and willing to work. 

Reverend Van Zanten. Certainly he has to have some skill or he 
would never become a member of the union. Bill DeKoning would 
never send out a man to a crane job, for instance, who could not run 



7800 IMPROPER AcnvmES in the labor field 

the job. He wouldn't have a union in 2 weeks if he did things like 
that. 

The Chairman. I am not saying that, but I am talking about as- 
suming they all have skills, in varving degrees, but sufficient, at least,, 
to make them eligible for membership m the union. 

Here is a man that has worked for 20 years, has been in the union 
for 20 years, has been paying his dues for 20 years, and he is an able 
laborer and servant, willing to work, who people want to work, yet 
they still take his dues and keep him in section A or B, where he can- 
not vote or have any voice in the management of the unions' affairs. 

Reverend Van Zanten. That is true. 

The Chaieman. You condemn that : do you not ? 

Reverend Van Zanten. We do. 

The Chairman. And you think we need legislation to correct that 
situation ? 

Reverend Van Zanten. We feel very definitely that this should be 
done. We sent copies of our report to the ethical practices committee 
of the AFL-CIO, to your committee, and to the leaders of the union, 
to the minority group. 

The Chairman. ^Vhat is the date of your report, do you remember? 
Just approximately, how long ago was it ? 

Reverend Van Zanten. It came out in about March or April of 
1956. 

The Chairman. March or April of 1956, nearly a year ago ? 

Reverend Van Zanten. Yes, sir. 

The Chairman. There has been no affirmative action ? It is nearly 
2 years ago. 

Reverend Van Zanten. Yes, sir. 

The Chairman. There has been no affirmative action taken by the 
ethical practices committee so far as you know, to remedy this situa- 
tion? 

Reverend Van Zanten. We have heard nothing from them. 

The Chairman. You heard nothing from them after filing this 
report with them ? 

Reverend Van Zanten. No. 

The Chairman. Do you not agree with me, and I think with the 
committee, that it is time the ethical-practices committee took some 
affirmative, positive action in this matter? 

Reverend Van Zanten. We would be delighted if they would. 

The Chairman. Do you think it would be a service to your com- 
munity ? 

Reverend Van Zanten. It would be a tremendous service if we 
could get labor itself to come in and clean its own house. 

The Chairman. That is all you are asking, primarily, is, "Mr. 
Labor, and Mr. Management of Labor, come in here and clean this 
thing up so that our people here in this community won't live under 
this sense of fear, so they will have their rights as human beings to 
work without discrimination and without imposition." 

Reverend Van Zanten. You understand we are in favor of trade 
unionism, our group, and we are not attacking labor in any way. 

The Chairman. Neither am I. I am only attacking those things 
that should not prevail in labor or any other organization. In the 
conditions that have been described here, the conditions that you 
found existed, your group or your committee, or whatever it is, are 



IMPROPER ACTIVITIES EST THE LABOR FIELD 7801 

conditions that should not prevail. Above all, they should not pre- 
vail in the ranks of organized labor where men are compelled to 
earn their living by the sweat of their brow. 

Reverend Van Zanten. We would welcome a thorough investiga- 
tion of this. 

The Chairman. We are trying to make the best we can here, but 
what I think is, it is time for labor itself to show some positive in- 
terest and take some definite action in this situation. 

Reverend Van Zanten. This would be the best answer. 

The Chairman. Wliat is that ? 

Reverend Van Zanten. This is the best answer, for labor to do 
it itself. 

The Chairman. That is the best answer, but even with labor doing 
it, if it will do it, that will clean up your community and maybe 
that will resolve the problem there locally, but we find these condi- 
tions prevailing in many other areas. 

Of course, as I have said in public addresses, the more that labor 
can do itself to clean up these conditions that are unwholesome, and 
that prevail in some areas, the more it can do and will do and does 
to clean it up itself, the less problem the Congress will have in passing 
legislation. 

In my judgment, when it is demonstrated they can and will clean 
it up and keep it cleaned up, there will be less justification for legis- 
lation. It is a problem that has to be dealt with. This cannot be 
permitted to continue in the United States without definite and ir- 
reparable harm to our economy, to our moral and social standards. 

I think it has to be cleaned up. Any source of authority, legal or 
within the ranks of labor, or any power that can be used to clean up 
these conditions, should be put in motion. 

Reverend Van Zanten. Speaking for the churches and also the 
synagogues and temples of Nassau County, we welcome whatever you 
can do. That is fine. 

The Chairman. I wish to commend you very highly for respond- 
ing, let us say, to the appeal of those who felt aggrieved. I don't 
always think it is the business of the church to inject itself into every 
problem that may arise, but where you ha^^e a community problem 
that is affecting the moral and social atmosphere of the community 
and where people are obviously being mistreated and certainly, when 
they come to you, I think it is most commendable that you as an asso- 
ciation of ministers or council of churches are responding. 

I think, sir, that you evidently, if we have any success at all, you 
will have contributed to the success of the end results, whatever they 
may be, of improvement in the situation. 

Reverend Van Zanten. Thank you. 

Senator Curtis. Reverend, did you find any evidence of economic 
Iiardship to families by reason of men being denied the right to work ? 

Reverend Van Zanten, There is no general answer of this sort. 
I think we would have to say in this particular period in Nassau 
County it has been one of tremendous expansion and there have been 
jobs galore, everywhere, and men have not been out of work. 

Senator Curtis. I am referring to these men who would appear 
in this chamber and they would not send them out to work. 



7802 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Reverend Van Zanten. Several of them have been in a bad way 
economically, and they have had to be carried by the others who have 
pooled their money to help one another. They have been out of work 
for a time. 

Senator Curtis. Now, the type of construction that has been going 
on there, has some of that been public construction for various units 
or levels of government ? 

Reverend Van Zanten. I would not know. 

Senator Curtis. You do not know whether it involves streets and 
paving ? 

Reverend Van Zanten. You will have to ask one of the men. I 
don't know exactly what they were doing. 

Senator Curtis. Did you find any evidence of collusion between 
officeholders and the element in the union that you are objecting to? 

Reverend Van Zanten. We did not have anything to do with that. 

Senator Curtis. You did not go into that phase of it? 

Reverend Van Zanten. Not in any way. 

Senator Curtis. That is all. 

Mr. Kennedy. I want to ask Mr. Louis Wilkens to come back. 

TESTIMONY OF LOUIS WILKENS— Resumed 

Mr. Kennedy. Mr. Louis Wilkens, as I understand you, you are 
the leader behind this group that is in opposition to the present 
leadership ? 

Mr. L. Wilkens. Mr. Kennedy, let me announce now that we have 
no one leader. We are all in the one group. 

Mr. Kennedy. You are a master mechanic ; is that right ? 

Mr. L. Wilkens. That is so. 

Mr. Kennedy. As the master mechanic^ you have control over cer- 
tain jobs. Would you explain the operation of a master mechanic? 

Mr. L. Wilkens. Well, my job is to keep all of the equipment in 
condition, but my main job is to hire and control and order the engi- 
neers that work on these machines and designate the different jobs to 
them. I also hire and fire. 

Mr. Kennedy. You have the right to hire and fire ? 

Mr. L. Wilkens. That is right. 

The Chairman. In that capacity, whom are you representing, 
management or labor ? 

Mr. L. Wilkens. I represent both sides. 

The Chairman. Both sides? 

Mr. L. Wilkens. Yes, sir. 

The Chairman. All right, that is clear. 

Mr. Kennedy. Now, these other individuals are dependent upon 
you then for their jobs ? 

Mr. L. Wilkens. Quite a few of them, yes. Everyone in our group 
that is working for the company with the exception of John DeKon- 
ing. Everyone of the others have worked under me at different times 
and in fact, now I think that I have five of the ojroup working for me. 

Mr. Kennedy. These conditions that have been described to the 
committee today, would you say that that is the condition of the union 
as it exists and has existed ? 

Mr, L. Wilkens. Oh, yes. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7803 

Mr. Kennedy. You have been with the union since the beginning ? 

Mr. L. WiLKENs. Yes, since the beginning. 

Mr. IvENNEDY. And you were the first president, isn't that right ? 

Mr. L. WiLKENS. That is right. 

Mr. IvENNEDY. And you say these conditions that have been de- 
scribed are accurate i 

Mr. L. WiLKENS. That is right. 

Mr. Kennedy. Now, has there been any effort to bring an;^ charges 
against you, Mr. Wilkens. I understand if you lost your job, then 
these other individuals would not have any jobs. 

Mr. L. Wilkens. Yes, and I reported at the last time of the hearing 
we had, there were charges preferred against me, which was held up 
by an order of the Federal court. 

Mr. I{j:nnedy. What do you mean, "held up" ? 

Mr. L. Wllkens. Well, there was an injunction put against them. 

Mr. Kennedy. Wliat kind of charges did they bring '? 

Mr. L. Wilkens. Bringing the organization into disrepute. 

Mr. Kennedy. Did you nhow the welfare funds report or something 
like that? 

Mr. L. Wilkens. Yes, for a long while I had been asking at every 
meeting about the welfare and the finances of the organization. I 
wanted to get some type of a report of the finances. I wanted to 
have them read off the executive board meetings and I wanted their 
report, what they were spending the money for, which we would 
never get. 

Being that I kept at every meeting asking for the welfare reports 
on the welfare, or on the finances, I was appointed a committee of one 
to sit down with our welfare administrator and get a report from him. 

When I went to see Mr. O'Rourke, who is our welfare administrator, 
I was advised that there was going to be a meeting in a few days of 
the welfare committee, that is 3 from the bosses and 3 from the union 
sitting on this welfare committee and they were having a meeting 
and if I would come to that meeting, they would give me a report. 

I went to the meeting, and I sat outside until they had their meet- 
ing and then I was asked in and they wanted to know what I wanted 
to know, and I asked a few pertinent questions. They said, "Well, 
that is all in the report." 

One of the members of the contractors' association, Mr. John Bu- 
chanan, was kind enough to give me his full report and the chairman 
said that he would have another report made up for Mr. Buchanan. 
I took the report with me. 

The following morning the National Labor Relations Board case 
was going on over in Mineola and one of our attorneys, Mr. Keating 
was there. 

Mr. Kennedy. What was Mr. Keating's position before that? 

Mr. L. Wilkens. He was the crime commissioner and he w^as as- 
sistant district attorney before that in New York City. 

Mr. I^nnedy. He was representing you in this matter? 

Mr. L. Wilkens. That is right. 

Mr. Ivennedy. And you showed him the copy of the report? 

Mr. L. Wilkens. I showed him a copy of the report. 

Mr. I^NNEDY. And you were brought up on charges for showing 
him a copy of the report ? 

Mr. L. Wilkens. That is right. 



7804 IMPROPEK ACTR^rriES IN THE LABOR FIEILD 

Mr. Kennedy. Now, you got an injunction in the court regarding 
those charges, and have you been brought up on any other charges 
recently ? 

Mr. L. WiLKENS. Yes ; I have. 

Mr. Kennedy. As a matter of fact, are you scheduled to be tried 
tonight ? 

Mr. L. Wilkens. I am scheduled to go on trial tonight. I was 
presented with charges on December 27. I am supposed to go on 
trial tonight. 

Mr. Kennedy. A^Hiat are those charges against you ? 

Mr. L. Wilkens. For crossing the picket line. 

Mr. Kennedy. Did you, in fact, cross a picket line ? 

Mr. L. Wilkens. I did not. 

Mr. I^NNEDY. Wliere were you at the time the picket line was 
placed ? 

Mr. L. WiLKiNS. I was in my office. 

Mr. Kennedy. Which was inside the building? 

Mr. L. Wilkens. Inside the building and the picket line was put 
up outside, and I stayed there until the pickets left. 

Mr. Kennedy. Was there ever a vote taken among the employees 
at this place of business, or this work that they would go on strike ? 

Mr. L. Wilkens. No; there was not and there was a regular pro- 
cedure which would have been for the union to notify me as to what 
their grievance was and then I should try to negotiate with the boss 
to straighten it out, which I never was notified about other than I 
received a telegram the night before at 8 : 15 that the employer was in 
violation of the contract and that the union and members would take 
such action as they deemed necessary, 

Mr. Kennedy. Did the employees go no strike ? Was the picket line 
that was established made up of the employees that were working in 
the shop? 

Mr. L, Wilkens. Not at first, but I tried to contact all of the jobs, 
and the different men from different jobs called me and asked me what 
the picket line was about and I told them it was due to our welfare 
and for them to join the picket line. 

I did not want my men to be caught running machines or getting 
into trouble, because that, I think, is what was the motive behind this. 
The men are on a big field, and in fact they can be 4 or 5 or 6 blocks 
away. They put a picket line up here and they could accuse these 
men of crossing the picket line, and so T tried everything I could to 
get the notification out to the men so they would get on the picket 
line and not be accused of crossing the picket line. 

Mr. Kennedy. But none of these men were on the picket line ini- 
tially ? They were not the ones that voted to go on the picket line 
or vote to strike ? 

Mr. L. WiLKEN. Among my men working for me, there was no vote 
to go on strike. 

Mr. Kennedy. And you did not discuss this grievance with the 
contractor as of that time? 

Mr. L. Wilken. No ; not as of that time. 

Mr. Kennedy, Have charges been made also against one of your 
other men ? 

Mr. L. Wilken. One of the men that was working for me, tliere 
was Charles Skura. 



IMPROPER ACTIVITIES IN THE L.\BOR FIELD 7805 

Mr. Kennedy. What was his name ? 

Mr. L, WiLKEN. Charles Skura. 

Mr. IvENNEDY. Charges made by Denis Doyle and Edward Co- 
minsky ? 

Mr. L. WiLKEN. That is right. 

Mr. ICennedy. I believe Mr. Cominsky is hece. I would like to 
have you step aside. 

Could we call Mr. Cominsky, Mr. Chairman. 

The Chairman. Come forward, please. 

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

Mr. Cominsky. I do. 

TESTIMONY OF EDWAED J. COMINSKY, ACCOMPANIED BY HIS 
COUNSEL, JAMES G. BLAKE 

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

Mr. Cominsky. Edward J. Cominsky, 187 Denton Place, Koose- 
velt, L. I., operating engineer. 

Mr. Blake. May I say a word, sir? 

The Chairman. Do you have counsel present to represent you ? 

Mr. Blake. Yes ; I do. 

The Chairman. Counsel, identify yourself for the record. 

Mr. Blake. James G. Blake, 230 Old Country Road, Mineola, 
N. Y. 

In order to save a grave injustice, may I say something at this 
point, because there are newspapermen here, and something is being 
said here which is totally false, and which is being given to the news- 
papers. 

The Chairman. Just a moment. 

Mr. Blake. One thing, sir. 

The Chairman. Just a moment. If you want to give a statement 
to the press, you have that privilege, and you have that right, and 
no one will object to that. But that is not the purpose of this in- 
quiry. You are here to represent the witness, and the witness is 
under oath to testify. 

Mr. Blake. I am trying to save this board from some embarrass- 
ment, sir. That is all I wanted to do. If you will not permit me, 
then I will not do it. 

The Chairman. You wanted to make a statement, apparently, for 
the press. 

Mr. Blake. No, sir ; for you, sir. 

The Chairman. What is your statement. 

Mr. Blake. There have been statements here, sir, about the AFL- 
CIO Ethical Practices Committee, that they have taken affirmative 
action. We had a hearing that lasted for 5 days, sir. 

The Chairman. Wait a moment. Wait a moment, now. You are 
not here as a witness. There has been testimony here that you do not 
agree to. All right, I am not going to permit you to come up here 
and make statements to contradict a witness, just as a lawyer here 
representing a witness. 



7806 IMPROPEK ACTIVITIES EN THE LABOR riELD 

You being an attorney, you know as well as I do what is proper. 

All right. Proceed with the witness. 

Mr. Kennedy. Mr. Cominsky, you are a member of the Operating 
Engineers ? 

Mr. Cominsky. I am. 

Mr. IvENNEDY. You have been a member for how long? 

Mr. Cominsky. Five years. 

Mr. Kennedy. You are from what section of the Operating En- 
gineers ? 

Mr. Cominsky. 18. 

Mr. Kennedy. 138? 

Mr. Cominsky. Yes. 

Mr. Kennedy. How long have you been in 138 ? 

Mr. Cominsky. Five years. 

Mr. Kennedy. You came right into 138 ? 

Mr. Cominsky. Yes. I came in as a full engineer. 

Mr. Kennedy. Didn't you go through 138-A ? 

Mr. Cominsky. I did not. 

Mr. Kennedy. Wlio did you talk to before you came into local 138? 

Mr. Cominsky. I talked to William K. DeKoning. 
. Mr. I^NNEDY. And he brought you right into local 138 ? 

Mr. Cominsky. Yes, sir. 

Mr. Kennedy. You didn't have to go through 138-A or 138-B ? 

Mr. Cominsky. I didn't. 

Mr. Kennedy. And you were not on a permit status before that? 

Mr. Cominsky. I was. 

Mr. Kennedy. For how long? 

Mr. Cominsky. Two years. 

Mr. Kennedy. You were on a permit status and then you went 
right into 138 ? 

Mr. Cominsky. Yes, sir. 

Mr, Kennedy. Have you brought certain charges against various 
members of your local ? 

Mr. Cominsky. I have. 

Mr. Kennedy. Who have those charges been brought against ? 

Mr. Cominsky. Lou Wilkens and Charles Skura. 

Mr. Kennedy. Who requested that you bring those charges ? 

Mr. Blake. May I ask at this point, Senator, what is the legislative 
purpose of this question ? 

Mr. Kennedy. Who requested that you bring the charges ? 

Mr. Blake. I was 

The Chairman. I can tell you one of the legislative purposes is that 
we are trying to get at these dictatorially controlled unions. If this 
witness is just a laborer, and he has been inspired to bring charges 
by somebody else, the committee has a right to know it. We might 
want to legislate against some of these dictatorial tactics that we hear 
of today. 

Proceed. 

Mr. Kennedy. Who requested that you bring the charges ? 

Mr. Cominsky. It was my prerogative. I could bring the charges 
or not bring the charges. 

Mr. Kennedy. With whom did you discuss the charges? 

Mr. Cominsky. I first discussed the charges with Sofield. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7807 

Mr. Kennedy. What position does he have ? 

Mr. CoMiNSKY. He is recording secretary. 

Mr. Kennedy. Who did you discuss the charges with after that ? 

Mr. CoMiNSKY. William C. DeKoning. 

Mr. Kennedy. Mr. Blake, you also represent Mr. William C. 
DeKoning, is that right ? 

Mr. Blake. That is right. I represent Local 138 of the Operating 
Engineers, and any of its members who are here. 

The Chairman. Let me ask you a question, Mr. Witness. Is Mr. 
Blake here representing you at your request, and are you under ob- 
ligation to pay him for his services ? 

Mr. CoMiNSKY. I asked Mr. Blake to represent me ; yes, sir. 

The Chairman. You asked him to represent you. Is the union 
paying his fee, or are you paying it ? 

Mr. CoMiNSKY. I haven t discussed a fee with Mr. Blake. 

The Chairman. I assume, then, that the union is to pay it. Is that 
right ? Is that your assumption, too ? 

Mr. CoMiNSKY. That is something. I don't know whether I will 
get a bill or not. 

The Chairman, You hardly are expecting one, are you ? 

Mr. CoMiNSKY. Well, I don't know. 

The Chairman. I think we can tell. Go ahead. 

Mr. IvENNEDY. "What conversation did you have with Mr. Sofield? 

Mr. CoMiNSKY. I made out a report, and Mr. Sofield read it. He 
asked me would I like to prefer charges against the men, and I said 
"Yes." ^ ^ 

Mr. Kennedy. What conversations did you have then with Mr. 
DeKoning ? 

Mr. CoMiNSKY. There was no conversation actually with Mr. De- 
Koning. He just read an article out of the constitution which, after 
I heard it, showed Mr. Wilkens and Mr. Skura both were wrong. 

Mr. Kennedy. He is the one that pointed the article out to you ? 

Mr. CoMiNSKY. I knew about it. 

Mr. IvENNEDY. Why did you have to go and talk it over with him, 
then? 

Mr. CoMiNSKY. He is the president of our local. 

Mr. Kennedy. Why did you have to go discuss it with him? 

Mr. CoMiNSKY. I am preferring charges against them. I guess I 
have to go to the president. 

Mr. Kennedy. You have to go to the president and prefer the 
charges to him ; show him the charges ? 

Mr. CoMiNSKY. I did. 

Mr. Kennedy. Did you write the charges out ? 

Mr. CoMiNSKY. Yes ; I did. 

Mr. Kennedy. Where did you write them out? 

Mr. CoMiNSKY. I wrote tliem out after I reported back. 

Mr. Kennedy. Who was with you when you wrote them out? 

Mr. CoMiNSKY. By myself. 

Mr. Kennedy. You were by yourself ? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. In your own liandwriting? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. Tlien what did von do with them ? 



7808 IMPROPER ACTIVmES IN THE LABOR FIEDLD 

Mr. CoMiNSKY. I turned them over to Mr. Sofield. 

Mr. Kennedy. Had you written them out before you turned them 
over to Mr. Sofield ? 

Mr. CoMiNSKY. They were written out before I did. 

Mr. Kennedy. Had you had discussions with Mr. Sofield first ? 

Mr. CoMiNSKY. None whatsoever. 

Mr. Kennedy. You wrote them out before you presented them to- 
Mr. Sofield? 

Mr. Cominsky. That is right. 

Mr. IvENNEDY. I thought you said Mr. Sofield wanted to find out if 
you wanted to present charges. 

Mr. Cominsky. After I read the report I made. 

Mr. Kennedy. I though you said you wrote the charges out your- 
self. 

Mr. Cominsky. I made no charges then. I wrote out the report 
on the strike. 

Mr. Kennedy. The report? 

Mr. Cominsky. Yes. 

Mr. Kennedy. When did you decide to make the charges? 

Mr. Cominsky. I decided to make the charges the same day. 

Mr. Kennedy. You mean after you talked to Mr. Sofield? 

Mr. Cominsky. Yes. After I talked to Mr. Sofield; yes. 

Mr. Kennedy. Then you went and talked to Mr. DeKoning? 

Mr. Cominsky. Yes. 

Mr. Kennedy. And he showed you the section of the constitution 
where you could make these charges ? 

Mr. Cominsky. Yes. 

Mr. Kennedy. So then you went back. Who wrote the charges 
up? 

Mr. Cominsky. I wrote the charges up. 

Mr. Kennedy. You went back 

Mr. Cominsky. No ; I did not write the charges. 

Mr. Kennedy. Who wrote the charges? 

Mr. Cominsky. The charges were wrote out — I don't know who- 
wrote them out, either. I read the charges and I signed them. 

Mr. Kennedy. Who handed the charges to you ? 

Mr. Cominsky. Mr. Sofield. 

Mr. Kennedy. Mr. Sofield handed the charges to you. Were you 
present when he was writing them out ? 

Mr. Cominsky. No, I wasn't. 

Mr. Kennedy. ^Yho was present ? When did he give them to you ? 
Did he tell you to come back, or what? 

Mr, Cominsky. This was a few days later. 

Mr. Kennedy. A few days later. He had written them out and 
then he handed them to you ? 

Mr. Cominsky. Yes. I asked him to write them out. 

Mr. Kennedy. And then you signed them ? 

Mr. Cominsky. Yes. 

Mr, Kennedy, Was Mr, DeKoning there when you came back? 

Mr. Cominsky. Mr, DeKoning I didn't see when I signed my name 
to the charges, 

Mr. Kennedy. Then when you saw Mr, Sofield, you and Mr. So- 
field, did you go in to see Mr. DeKoning? 

Mr. Cominsky. No. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7809 

Mr. Kennedy. You went to Mr. DeKoning by yourself? He had 
the constitution? 

Mr. CoMiNSKT. Well, he told me that we were right in preferring 
the charges. 

Mr. Kennedy. And told you what section ? 

Mr. CoMiNSKY. That is right. 

]Mr. Ivexnedy. And then they wrote it out and you came back in 
a couple of days and picked it up ? 

Mr. CoMiNSKY. That is right. 

Mr. Kjennedy. Now tell me : You made charges against whom ? 

Mr. CoMiNSKY. Mr. Wilken and Mr. Skura. 

Mr. I^NNEDY. You saw Mr. Wilken go through the picket line? 

Mr. CoMiNSKY. Mr. Wilken had a conversation with me. 

Mr. Kennedy. What did he say in the conversation ? 

Mr. CoMiNSKY. He approached me and he said, "Now, look, this 
is no surprise to me. One of your fellows called me up last night 
and told me you were going to do this." 

Well, if he knew that, I felt that he should have walked the line 
the same as us. But then he went into the office. 

Mr. Kennedy. He went into the office ? 

Ml-. CoMiNSKY. He went into the building. 

Mr. KJENNEDY. "What time was this ? 

Mr. CoMiNSKY. Well, he came up to me about 7 :30 in the morning, 
or a little after 7. 

Mr. Ivennedy. A little after 7 in the morning. Wlio was with him 
at the time ? 

Mr. CoMiNSKY. Nobody was with him. 

Mr. IvENNEDY. He was all by himself ? 

Mr. CoMiNSKY. With me, yes. 

Mr. Kennedy. Who else saw you talking ? 

Mr. CoMiNSKY. A few of the other boys. 

Mr. KJENNEDY. Like who? 

Mr. CoMiNSKY. Well, William Cruise ? 

Mr. Kennedy. William Cruise? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. He was there, too ? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. Did he hear the conversation ? 

Mr. CoMiNSKY. He did not hear the conversation. Mr, Wilkens 
then left me and went over to talk to Mr. Cruise. 

Mr. Kennedy. He went over to talk to him then, and went into 
the building? 

Mr. CoMiNSKY. Then he went into the building. 

Mr. Kennedy. And you were walking with picket signs at that 
time? 

Mr. CoMiNSKY. Yes, I was. 

]Mr. Kennedy. Wliat time did you get on the picket line? 

Mr. CoMiNSKY. 7:30. 

Mr. Kennedy. You got on the picket line at 7 :30 ? 

Mr. CoMiNSKY. Yes. 

Mr. Ivennedy. I thought you said you talked to him a little after 
9:30. 

Mr. CoMiNSKY. A little after 7 :30. 

21243— 58— pt. 19 20 



7810 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. Kennedy. A little after 7 :30 ? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. He did not get to the office until a little after 7 :30 ? 

Mr. CoMiNSKY. Well, I don't know. 

Mr. Kennedy. He must have been. He was coming to work at 
7:30? 

Mr. CoMiNSKY. That is when I first saw him. 

Mr. Kennedy. Who else did you make the charges against? 

Mr. CoMiNSKY. Charles Skura. 

Mr. Kennedy. Did you see Charles Skura there ? 

Mr. CoMiNSKY. I saw him, yes. 

Mr. Kennedy. When did you see him ? 

Mr. CoMiNSKY. This is around noon. 

Mr. KJENNEDY. Around noontime ? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. Wliat was he doing ? 

Mr. CoMiNSKY. I just got a glance is all. 

Mr. Kennedy. What was he doing ? 

Mr. CoMiNSKY. Nothing. 

Mr. Kennedy. You made charges against him, so what 

Mr. CoMiNSKY. He was inside the property line. 

Mr. KJENNEDY. Inside the property line ? 

Mr. CoMiNSKY. Yes. 

Mr. Kjjnnedy. And he was working there, was he ? 

Mr. CoMiNSKY. I wouldn't say he was working there, no. 

Mr. Kennedy. What was he doing inside the property ? 

Mr. CoMiNSKY. He just looked out and I got a glimpse of him. 

Mr. Kennedy. From a window ? 

Mr. CoMiNSKY. No. He come on the outside. 

Mr. Kennedy. What time was that ? 

Mr. CoMiNSKY. That was around noontime. 

Mr. Kennedy. Did anybody else see him? 

Mr. CoMiNSKY. Mr. Doyle, Benny Doyle. 

Mr. Kennedy. Both of you saw him? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. He just looked out and you saw him, and that is all? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. And you preferred charges against him, too? 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. Did you discuss these charges with Mr. Sofield? 
Did you discuss this and the ones against Mr. Wilkens. 

Mr. CoMiNSKY. There was no discussion. 

Mr. Kennedy. Well, what you related. 

Mr. CoMiNSKY. Yes. 

Mr. Kennedy. I see. 

Senator Curtis. Specifically, what is Mr. Wilkens charged with? 

Mr. CoMiNSKY. Crossing the picket line. 

Senator Curtis. "Wliere was the picket line ? 

Mr. CoMiNSKY. Outside the building. 

Senator CtTtTis. What building? 

Mr. CoMiNSKY. J. C. Peterson. 

Senator Curtis. That building was under construction ? 



IMPBOPER ACTIVITIES EST THE LABOR FIELD 7811 

Mr. CoMiNSKY. No ; it wasn't. It was the office of J. C. Peterson. 

Senator Curtis. And were there labor difficulties going on in the 
building ? 

Mr. CoMiNSKY. Yes. We had labor difficulties; yes. 

Senator Curtis. Was there a strike going on? 

Mr. CoMiNSKT. Yes ; there was. 

Senator Curtis. Against whom ? 

Mr. CoMiNSKY. Against J. C. Peterson. 

Senator Curtis. What union was involved ? 

Mr. CoMiNSKY. The Operating Engineers. 

Senator Curtis. The building was not under construction ? 

Mr. CoMiNSKY. No, sir. It was his office. 

Senator Curtis. His office ? 

Mr. CoMiNSKY. Yes. 

Senator Curtis. How long had the strike been going on ? 

Mr. CoMiNSKY. We started at 7 : 30 in the morning. 

Senator Curtis. And when had the strike been voted ? 

Mr. CoMiNSKY. Pardon ? 

Senator Curtis. When had the strike been voted ? 

Mr. CoMiNSKY. The strike was voted the day before. 

Senator Curtis. Where? 

Mr. CoMiNSKY. At the labor building. 

Senator Curtis. Was there a meeting there the day before ? 

Mr. CoMiNSKY. Yes, sir. 

Senator Curtis. A union meeting ? 

Mr. CoMiNSKY. Not a union meeting ; no. 

Senator Curtis. How many members of the union were present 
when this vote was taken to strike the day before ? 

Mr. CoMiNSKY. Well, about 30. 

Senator Curtis. About 30. Who called it ? 

Mr. CoMiNSKY. Pardon ? 

Senator Curtis. Who called the meeting ? 

Mr. CoMiNSKY. I was told to come down. I called up. I was out 
of work. 

Senator Curtis. What time was the meeting called for? 

Mr. CoMiNSKY. I believe it was 8 o'clock. 

Senator Curtis. Eight o'clock in the morning? 

Mr. CoMiNSKY. Eight o'clock in the evening. 

Senator Curtis. Eight o'clock in the evening? 

Mr. CoMiNSKY. Yes. 

Senator Curtis. Were all the members notified of this meeting? 

Mr. CoMiNSKY. That I don't know. 

Senator Curtis. Wlio presided over the meeting ? 

Mr. CoMiNSKY. Mr. DeKoning. 

Senator Curtis. And a vote was taken to strike ? 

Mr. CoMiNSKY. That I don't know. We were asked to volunteer, 
if we would volunteer, to form a picket line. 

Senator Curtis. A while ap-o I ask you if the strike was ever voted, 
and you said it was, the day before. 

Now, was there a vote to strike ? 

Mr, CoMiNSKY. Well, I wouldn't say by a vote ; I don't know. We 
were asked to form a picket line, if we would volunteer. 

Senator Curtis, Well, I am not talking about tlie formation of a 
picket line. I am asking you, Was there a vote taken to strike? 



7812 IMPROPEK ACTIVITIES EN THE LABOR FIEILD 

Mr. CoMiNSKY. That I don't know. 

Senator Curtis. Well, as a matter of fact, you know there wasn't ;. 
do you not ? 

Mr. CoMiNSKY. Well, all I Imow is I was asked to report down 
there at 8 o'clock. I didn't even know what it was for. 

Senator Curtis. What time did you get there ? 

Mr. CoMiNSKY. Around 8 o'clock. 

Senator Curtis. How long did the meeting last ? 

Mr. CoMiNSKY. I would say about an hour. 

Senator Curtis. About an hour ? 

Mr. CoMiNSKY. Maybe a little longer. 

Senator Curtis. Were you there all the time ? 

Mr. CoMiNSKY. Yes ; I was. 

Senator Curtis. Did you leave the room at any time ? 

Mr. CoMiNSKY. No ; I didn't. 

Senator Curtis. Was there any time while you were there that a 
motion was made to strike and a vote taken on it ? 

Mr. COMINSKY. No. 

Senator Curtis. None at all ? 

Mr. COMINSKY. No. 

Senator Curtis. So there was not a vote to strike taken the day 
before ? 

Mr. CoMiNSKY. Well, no ; I guess there wasn't. 

Senator Curtis. And Mr. Wilkens is charged with crossing the 
picket line? 

Mr. CoMiNSKY. Yes. 

Senator Curtis. And who are the witnesses against him on that 
charge ? 

Mr. CoMiNSKY. There are two of us. 

Senator Curtis. Two of you. Who was the other one ? 

Mr. CoMiNSKY. Dennis Doyle. 

Senator Curtis. What is his address ? 

Mr. CoMiNSKY. That I don't know. 

Senator Curtis. You saw him cross the picket line? 

Mr. CoMiNSKY. Yes ; I did. 

Senator Curtis. From where to where did he go ? 

Mr. CoMiNSKY. He left me and went to the other side of the building. 

Senator Curtis. He left you ? 

Mr. CoMiNSKY. Yes, and talked to another fellow. 

Senator Curtis. Is that a violation of law to talk to you and then 
go talk to another fellow ? 

Mr. CoMiNSKY. No; it is not a violation. Then he left the other 
fellow and went in the building. 

Senator Curtis. Wliat time do you say this was ? 

Mr. CoMiNSKY. He talked to me a little after 7 : 30. 

Senator Curtis. How do you know it was 7 : 30 ? 

Mr. CoMiNSKY. I was told to form a picket line at 7 : 30, and I got 
there exactly at 7 : 30. 

Senator Curtis. IVhat was the purpose of this picket line? 

Mr. CoMiNSKY. J. C. Peterson was back on his welfare fund, since 
April, I believe it was, which is against our contract. We were asked 
if we would volunteer to form a picket line. 

Senator Curtis. You were volunteers to form a picket line ? 

Mr. CoMiNSKY. We vohmteered for that ; yes. 



IMPROPER ACTIVITIES IN TliE LABOR FIELD 7813 

Senator Curtis. But you stand on your own statement that all the 
time in this meeting there was no vote passed to strike ? 
Mr. CoMiNSKY. There was no vote ; no. 
Senator Curtis. But some of you volunteered down there ? 

Mr. CoMiNSKY. Yes. 

Senator Curtis. You were appearing as volunteers ? 

Mr. CoMiNSKY. Yes. We didn't know what the meeting was about. 
I didn't even know what it was about. 

Senator Curtis. Who is this other witness against Mr. Wilkens? 

Mr. CoMiNSKY. Dennis Doyle. 

Senator Curtis. It is not this Cruise that you mentioned a while 
ago? 

Mr. CoMiNSKY. No. 

Senator Curtis. Who are the witnesses against Mr. Skura ? 

Mr. CoMiNSKY. Dennis Doyle and myself. 

Senator Curtis. Mr. Doyle ? 

Mr. CoMiNSKY. Yes. The reason for that is because 

Senator Curtis. Mr. Cruise is not going to be a witness, then ? 

Mr. CoMiNSKY. Against Mr. Wilkens and Mr. Skura ? 

Senator Curtis. Either one of them. 

Mr. CoMiNSKY. No. The reason for that is, I was appointed captain 
of the picket line, and it was up to me to prefer charges, if I wished to. 

Senator Curtis. Wliat is your definition of crossing the picket line ? 

Mr. CoMiNSKY. My definition of crossing the picket line is when a 
picket line is formed, and a man goes through it intentionally. 

Senator Curtis. Go through it for what purpose ? 

Mr. CoMiNSKY. To work. 

Senator Curtis. For whom does Mr. Wilkens work ? 

Mr. CoMiNSKY. J. C. Peterson. 

Senator Curtis. That is all for the moment. 

The Chairman. Let me ask this witness a question or two. 

Where was the job that is under construction ? 

Mr. CoMiNSKY. The job that is under construction ? 

The Chairman. Yes. 

Mr. CoMiNSKY. This is no job under construction. This is Mr. 
Peterson's, J. C. Peterson's home office. 

The Chairman. In what town ? 

Mr. CoMiNSKY. In Baldwin. 

The Chairman. Wliere? 

Mr. CoMiNSKY. In Baldwin. 

The Chairman. What is Mr. Wilkens' position there ? 

Mr. CoMiNSKY. Master mechanic. 

The Chairman. He is a member of the union ? 

Mr. CoMiNSKY. Yes ; he is. 

The Chairman. He has offices in that building ? 

Mr. CoMiNSKY. Yes; he has. 

The Chairman. And so does the J. C. Peterson Co ? 

Mr. CoMiNSKY. Yes. 

The Chairman. Who is the other man that Mr. Wilkens talked to 
just before he crossed the picket line ? 

Mr. CoMiNSKY. William Cruise. 

The Chairman. William Cruise ? 

Mr. Cominsky. Yes. 

The Chairman. Does he substantiate your statement? 



7814 IMPROPEK ACTIVmES m THE LABOR FIELD 

Mr. CoMiNSKY. Yes ; he does. 

The Chairman. Did he see him go across the picket line ? 

Mr. CoMiNSKY. Yes ; he did. 

The Chairman. Who else was it you said you preferred charges 
against ? 

Mr. CoMiNSKT. Charles Skura. 

The Chairman. S-k-u-r-a'^ 

Mr. Cominsky. Yes. 

The Chairman. Where does he work ? 

Mr. Cominsky. He works for J. C. Peterson. 

The Chairman. How long have you known him? 

Mr, Cominsky, I met him, I guess, around twice. 

The Chairman. About twice ? 

Mr. Cominsky. Yes, sir. 

The Chairman. So you are pretty positive you know him ? 

Mr, Cominsky, Well, I know Charles Skura ; yes. 

The Chairman. What? 

Mr, Cominsky. I know him, yes. 

The Chairman. You know him ? 

Mr. Cominsky. By sight, yes. 

The Chairman. I didn't quite understand whether he peeped out 
of a window or what. You did not see him cross a picket line, but you 
just saw him on the other side ? 

Mr. Cominsky. Yes ; that is right. 

The Chairman. About noon that day ? 

Mr. Cominsky. Yes. 

The Chairman. You did not see him cross the picket line ? 

Mr. Cominsky. No, sir. 

The Chairman. If he was in that building at all, you do not know 
whether he went in there before daylight or not ; do you ? 

Mr. Cominsky. That is right. 

The Chairman. You do not know whether he ever crossed the 
picket line ; do you ? 

Mr, Cominsky, That is right. 

The Chairman. You do not know that he ever crossed a picket 
line, do you? 

Mr. Cominsky. But 

The Chairman. But, nothing. You do not know that he ever 
crossed the picket line, do ^ou ? 

Mr, Cominsky. He was in the building. 

The Chairman. He could have been in the building for hours 
before. 

Mr, Cominsky. They do maintenance work 

The Chairman. I imderstand. But you never saw him cross a 
picket line, did you ? 

Mr. Cominsky. He was in the building. 

No, I didn't see him. 

The Chairman. I didn't ask you that. 

Mr. Cominsky. He didn't go past me. 

The Chairman. You didn't see him cross that picket line, did you ? 

Mr. Cominsky. No, I didn't. 

The Chairman. Now you say you saw him in the building? 

Mr. Cominsky. Yes, I did. 

The Chairman. "\Yliere in the building ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7815 

Mr. CoMiNSKY. Outside the building as he looked out. 

The Chairman. Was he in the building or outside ? 

Mr. CoMiNSKY. He looked out of the building and back in again. 

The Chairman. If he looked out, he had to be on the inside, didn't 
he, to look out ? 

Mr. CoMiNSKY. That is right. 

The Chairman. Was he on the outside ? 

Mr. Cominsky. He was on the outside. 

The Chairman. On the outside looking out ? 

Mr. Cominsky. Just a minute. 

He looked around the corner of the building. 

The Chairman. Wait a minute. 

We got into a corner now. Which corner ? 

Mr. Cominsky. He looked on the east side of the building. 

The Chairman. Was he in the building or out of the building when 
he looked east or west ? 

Mr. Cominsky. He was out of the building. 

The Chair]man. At the corner of the building ? 

Mr. Cominsky. Yes. 

The Chairman. The east corner of the building ? 

Mr. Cominsky. Yes, sir. 

The Chairman. And he peeped around ? 

Mr. Cominsky, Yes, sir. 

The Chairman. And you saw him ? 

Mr. Cominsky. Yes. 

The Chairman. How much of him did you see? 

Mr. Cominsky. I saw his head. 

The Chairman. Just his head. You are sure that that was Mr. 
Charles Skura ? 

]Mr. Cominsky. I am all — positive. 

The Chairman. Absolutely positive ? 

Mr. Cominsky. I am sure. 

The Chairman. You are swearing to that under oath ? 

Mr. Cominsky. I am. 

The Chairman. If you are not telling the truth, then you know 
you are subject to a penalty ? ' 

Mr. Cominsky. Yes, sir. 

The Chairman. All right. 

Now, if the truth is he is 12 miles away from that spot at that hour, 
and that can be established, what are you going to say about it? 

Mr. Cominsky. I would say he would have to prove it to me. 

The Chairman. You would say what ? 

Mr. Cominsky. He would have to prove it. 

The Chairman. You do not think you could honestly be mistaken? 

Mr. Cominsky. Everybody is subject to mistake, yes. 

The Chairman. Do you think now you are mistaken ? 

Mr. Cominsky. I wouldn't say, not yet, unless it is proven to me 
that he was 12 miles away. 

The Chairman. In other words, if we proved you were not telling 
the truth, then you will admit you were mistaken, is that it? Don't 
you know this whole thing is plain ridiculous, from start to finish? 
You know that, don't you? 

Are there any further questions? 

Senator Curtis. Yes, Mr. Chairman. 



7816 iMPROPEK AcnvrriES m the labor fieild 

What will be Mr, Wilken's penalty if you find him guilty ? 

Mr. CoMiNSKY. That is up to the decision of the body. 

Senator Curtis. What is it apt to be ? 

Mr. CoMiisrsKY. I don't know. 

Senator Cuetis. Wliat would be the penalty in similar cases ? 

Mr. CoMiNSKY. I have never heard of a case like that in our local. 

Senator Curtis. No one else ever has. 

Mr. CoMiNSKY. That is, where anybody passed a picket line. 

Senator Curtis. Now, how did Mr. Wilkens arrive on the scene that 
morning? 

Mr. CoMiNSKY. I didn't see him arrive. He walked up to me by 
foot. 

Senator Curtis. You don't know whether he arrived by car ? 

Mr. CoMiNSKY. That I don't know. 

Senator Curtis. You don't know whether he arrived by streetcar? 

]\Ir. COMINSKY. No. 

Senator Curtis. You don't know what his usual method of coming 
to that building is ? 

Mr. CoMiNSKY. That is his place of business. He operates from 
that building. 

Senator Curtis. Yes, but how does he usually come there, what 
mode of transportation ? 

Mr. CoMiNSKY. I really don't kiiow. 

Senator Curtis. Do you know what kind of car he drives? 

Mr. CoMiNSKY. No, I don't. 

Senator Curtis. Do you know where he parks it ? 

Mr. CoMiNSKY. No, I don't. 

Senator Curtis. How many entrances are there to the building? 

Mr. CoMiNSKY. Two that I know of ; one in the rear and one in the 
front. 

Senator Curtis. Are there any side entrances ? 

Mr. CoMiNSKY. That I can't remember. 

Senator Curtis. You don't remembel- ? 

Mr. CoMiNSKY. No. 

Senator Curtis. Wliich way does the front of the building face ? 

Ml*. CoMiNSKY. The front of the building faces, I believe it is, north. 

Senator Curtis. Wliere was your picket line of these volunteers that 
you had ? 

Mr. CoMiNSKY. East, west, and north of the building. 

Senator Curtis. All around the building? 

Mr. CoMiNSKY. Yes, sir. 

Senator Curtis. You didn't see him arrive ? 

Mr. CoMiNSKY. I did not. 

Senator Curtis. So you don't know what time he got there ? 

Mr. CoMiNSKY. That I couldn't say, what time he got there ; no. The 
first time I saw him, as I said, was a little after 7 : 30. 

Senator Curtis. Yes; and you don't know whether he was in the 
building prior to that, do you ? 

Mr. CoMiNSKY. That I couldn't tell. The first time I saw him, like 
I say, was when he walked up to me. 

Senator Curtis. So you don't know what time he arrived at the 
building, do you? 

Mr. CoMiNSKY. No ; I do not. 

Senator Curtis. Nor who was with him ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7817 

Mr. CoMiNSKY. No ; I do not. 

Senator Curtis. Nor how long he was in the building before you saw 
him? 

Mr. CoMiNSKT. No ; I do not. 

Senator Curtis. So you don't know that he crossed the picket line 
to get in the building ? 

Mr. CoMiNSKY. Well, he was outside the building talking to me. 

Senator Curtis. All right ; answer my question. 

Mr. CoMiNSKT. Pardon ? 

Senator Curtis. You do not know that he crossed the picket line to 
get into the building, do you ? 

Mr. CoMiNSKY. No ; that I don't know of. He talked to me, and 
after he left me he went to talk to Cruise, and then he went into the 
building. 

Senator Curtis. Yes ; but you do not know that he crossed the picket 
line to get into the building, do you ? 

Mr. CoMiNSKT. Well, he went past the pickets. He has to go past 
the pickets to get into the building. 

Senator Curtis. Not if he gets there first. Well, you do not know, 
you have stated here under oath that you do not know what time he 
arrived, how he arrived, what his mode of transportation was, what 
time he went into the building, or how long he was in the building 
before you saw him. 

Mr. CoMiNSKY. That is right. 

Senator Curtis. Now, it is true that you do not know that he crossed 
the picket line, do you ? 

Mr. CoMiNSKY. I could only say that after the conversation with 
William Cruise he went into the building. 

The Chairman. If he had been in the building and had left the 
building and had gone off, he would have crossed the picket line, 
would he not ? 

Mr. CoMiNSKY. Yes; twice. 

The Chairman. He would cross it going out ? 

Mr. CoMiNSKY. Going the other way. 

The Chairman. Would you have preferred charges on him for 
that? 

Mr. CoMiNSKY. I couldn't tell you. 

The Chairman. You are just preferring charges for crossing the 
picket line. If he crossed and walked on out when he went out of 
the building, would you have preferred charges on him for crossing 
the picket line ? 

Mr. CoMiNSKY. He was not going to the place of business. 

The Chairman. Well, he would be coming from it. 

Mr. CoMiNSKY. That is right. 

Senator Curtis. You do not know when he arrived or how he ar- 
rived or what time he went into the building, for how long he was in 
the building, before you say that you talked to him. 

Then, the truth is, you do not 'know that he crossed the picket line, 
do you ? 

Mr. CoMiNSKY. I can only say that I saw him go into the building 
after a discussion with William Cruise. 

Senator Curtis. Answer my question. You do not know that he 
crossed the picket line, do you ? 



7818 IMPROPER ACnVITlES IN THE LABOR FIELD 

Mr. CoMiNSKY. As far as I can say, he crossed the picket line 
after he talked to William Cruise and went into the building. 

Senator Curtis. But you do not know that he crossed the picket 
line, do you? You have stated that you do not know what time he 
arrived, how he arrived, when he went into the building, or how long 
he stayed there, have you not ? 

Mr. CoMiNSKY. I am not not that familiar with Mr. Wilkens, how 
he goes to work, his tranportation. 

Mr. Kennedy. I think you are talking about different people. He 
is talking about Mr. Wilkens and you are talking about Mr. Skura. 

Senator Curtis. I am talking about Mr. Wilkens. He has stated 
under oath that he does not know when he arrived, what time he went 
into the building, how long he was there before this alleged conversa- 
tion. 

As a matter of fact, you know this is a f rameup and a trap to bring 
charges against Mr. Wilkens, do you not? 

Mr. CoMiNSKY. That I do not know. 

Senator Curtis. Do you deny it ? 

Mr. CoMiNSKY. That I have to deny. 

Senator Curtis. You have to deny ? Why ? 

Mr. CoMiNSKY. Because I am preferring the charges. Nobody 
asked me to prefer the charges against Mr. Wilkens. 

Senator Curtis. I did not ask that, but the reason you are doing 
it is in order to bring trouble for Mr. Wilkens, is it not? 

Mr. CoMiNSKY. No, it isn't. I naturally am bringing him trouble 
if I prefer charges against him for passing a picket line, but my 
charges are not political or anything like that. 

Senator Curtis. No; I have never seen anything like this in poli- 
tics, but you say that your definition of crossing the picket line is if 
someone crossed the picket line to go to work. Now, you accuse the 
man of crossing a picket line when you say you do not know when he 
arrived, how he arrived, or when he went into where he works, or how 
long he was there before the picket line was formed. 

By your own testimony, you have indicated that you have no evi- 
dence that he crossed the picket line. 

That is all, Mr. Chairman. 

The Chairman. You stand aside for just a moment and listen, 
please. 

Mr. Skura, come forward please. 

TESTIMONY OF CHAELES SKURA— Resumed 

The Chairman. All right, Mr. Skura, you have been previously 
sworn? 

Mr. Skura. Yes, sir. 

The Chairman. You identified yourself, I believe, early this morn- 
ing. 

Mr. Skura. Yes, sir. 

The Chairman. Have you heard this witness, Mr. Cominsky ? 

Mr. Skura. Yes, sir. 

The Chairman. Did you hear him testify ? 

Mr. Skura. That is right. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7819 

The Chairman. Whatever day it was this strike was on, they i)ut 
up that picket line, and you are supposed to have peeped around the 
corner of a building. Do you know where that building is ? 

Mr. Skura. Yes, sir. 

Tlie Chairman. Have you ever been in it ? 

Mr. Skura. Yes, sir. 

The Chairman. You are familiar with it? 

Mr. Skura. Yes, sir. 

The Chairman. Do you know this man that just testified? 

]Mr. Skura. Yes, sir. 

The Chairman. How long have you known him ? 

JMr. Skura. I have met Edward Commsky in 1956. 

The Chairman. 1956? 

Mr. Skura. That is right. I met him at my brother's house. 

The Chairman. How often have you seen him since ? 

Mr. Skura. This is the first time I have seen him in about a year now. 

The Chairman. A})Out a year now ? 

Mr. Skura. That is right, sir. 

The Chairman. Do you remember the date that this picket line was 
put up? 

Mr. Skura. Yes, sir. 

The Chairman. What date was it ? 

Mr. Skura. December 18. 

The Chairman. What year ? 

Mr. Skura. 1957. 

The Chairman. December 18, 1957 ? "V'^iere were you on that day, 
about 12 o'clock ? Give us an account of yourself for the day, up to 
12 o'clock. 

Mr. Skura. I arrived on the job about 7:15. 

The Chairman. Where ? 

Mr. Skura. On Shore Drive, Manhassett. 

The Chairman. How far is that away from this building ? 

Mr. Skura. Well, 12 miles, approximately. 

The Chairman. Twelve miles ? 

Mr. Skura. Yes, sir. 

The Chairman. Wliat did you do after you got to your job? 

Mr. Skura. I went to the job with my nephew. He drove me there 
in his car. No more than I got out of the car there w^as four pickets 
there. They put their placards on, "Unfair Labor Practices." I 
walked over to them and I said, "Wliat is the gripe ?" And they said, 
"Well, you know Jolin C. Peterson didn't pay his welfare fund and we 
got the pickets up." 

I said, "As long as Mr. Peterson didn't pay his welfare fund, I will 
walk with you boys." They said, "Well, you will not get on your 
machine and start it?" and I said, "Positively, not. This machine can 
rot right there. If he didn't pay the welfare fund, that means I didn't 
collect hospitalization and I am with you." 

I walked the picket line for 1 hour. The captain of the pickets — ■ 
I don't Imow his name offhand — he went out and bought coffee. The 
captain of the pickets v/as making a call to the labor lyceum every hour 
on the hour. I had been there from that time until the pickets went 
off exactly at 25 minutes to 1. The captain came back and said, 
"Everything is settled. You can go back to work." 



7820 iMPROPE'R AcnvmES m the laboe field 

I said, "I will not go back to work unless you take the placards 
off and leave the job." He said, "That we will do. Let's go, boys." 
He took the other boys with him and they said, "We are going to get 
anotlier sucker," and off they went. 

The Chairman. Going to get another sucker ? 

Mr. Skura. That's right. I got on my machine and said to my 
nephew, "You get on East Shore Road and go to your job. If the 
pickets are there, do not go to work, but sit in your job." 

The job is approximately one mile and a half from Shore Road, 
in Manhassett, and they are both in Manhassett. 

The Chairman. You walked the picket line, then, from the time 
you got to the job until about 1 : 30 ? 

Mr. Skuil\. I did. In fact, around 10:30 there was a police car 
that came up and they motioned to me to come over. I walked over 
to the police car and they said, "We have orders from headquarters 
and the DA's to make a report of what is going on here. We want no 
violence." 

They asked me my name and I told them my name. They said, 
"Wlio are the other men there?" and I said, "There is the captain of 
the pickets. You better get your information from him." They 
went to him and whatever information they got, I couldn't tell you, 
but that was supposed to go on the blotter at headquarters. 

The Chairman. You do not remember the policeman's name? 

Mr. Skura. No, sir. 

The Chairman. I think we have the information. I think he 
verifies your statement. 

Mr. Adlerman, be sworn. 

Do you solemnly swear the evidence you shall give before this Sen- 
ate select committee shall be the truth, the whole truth, and nothing 
but the truth, so help you God ? 

Mr. Adlerman. I do. 

TESTIMONY OF JEROME S. ADLERMAN 

The Chairman. You are a member of the staff of this committee? 

Mr. Adlerman. I am. 

The Chairman. State whether you have checked with the police 
department in that area with respect to the statement made by this 
witness, Mr. Skura, as to his being on that picket line at the time 
he says he was, at 10 o'clock about, that morning, and whether the 
officer conferred with him, as he stated. 

Mr. Adlerman. I did, sir. 

The Chairman. What is the name of the officer ? 

Mr. Adlerivian. I spoke to an Inspector Scott, of the Mineola 
County Police, Mineola, N. Y., on the telephone. I asked him to 
check whether or not there had been a police patrol car present on 
the Manhassett job. He said there was. 

_ He checked for me and he told me that one of the men that was 
listed by the policemen on the job as being there was Mr. Skura. 

The Chairman. Charles Skura ? 

Mr. Adlerman. That is right. Mr. Skura was sitting in a car at 
the time the patrolman was there. The picket line, he said, lasted 
about 214 hours to 3 hours. He took the names of some other men 
on the picket line. 



IMPROPER ACTIVITIES EST 'aIIE LABOR FIELD 7821 

Manhassett, Long Island, to my knowledge, is between 8 to 12 miles 
from Baldwin, Long Island. 

The Chairman. Thank you very much. 

TESTIMONY OF CHARLES SKURA— Resumed 

The Chairman. Mr. Skura, what time did you leave that job that 
day? 

Mr. Skura. I left that job at exactly 4:30, my quitting time. 

The Chairman. When you left the picket line, you went right to 
work? 

Mr. Skura. At a quarter to 1. 

The Chairman. On your machine ? 

Mr. Skura. On my machine, which is a payloader. They call it a 
front-end loader. 

The Chairman. Did you go to or did you see the building in which 
the office of J. C, Peterson Co. was located that day ? 

Mr. Skura. No, sir, I did not. 

The Chairman. Did you get inside of it ? 

Mr. Skura. No, sir, I did not. 

The Chairman. Not at any time ? 

Mr. Skura. Not at any time. 

The Chairman. I assume, then you did not peep around the corner. 

Mr, Skura. Positively not. It must have been my shadow. 

The Chairman. I do not know. I do not know whether Long 
Island has long shadows or not, but it would take a pretty long 
shadow. 

Mr. Skura. May I make a statement? 

The Chairman. Yes, you may. 

Mr. Skura. This shows how our local, by our president, is run to 
crucify the reform group and kill them right here. 

The Chairman. In other words, the whole thing is a frameup? 

Mr. Skura. It is a frameup. 

The Chairman, What would you say about this manner of picket- 
ing, just a little group getting together and calling for volunteers. 
I have heard of wildcat strikes. This seems to me to be kind of a 
furious wildcat strike. 

Mr. Skura. This was not done in a democratic procedure but was 
done in a dictatorial procedure. Mr. DeKoning knew what he was 

foing to do. That was the way he wanted it done. Eddy Cominsky 
new all about it. Everybody knew all about it who was at that 
meeting of the night before. You are supposed to notify the master 
mechanics on the job that the welfare fund was not paid by J. C. 
Peterson Co. and you are hereby instructed to get all of your engineers, 
your oilers, or whatever men you have working in that capacity, get 
them together and do not work until further notice until Mr. J. C. 
Peterson pays his welfare fund, which we would glady do. 
Mr. Kennedy. "WHiat was Mr. DeKoning trying to do ? 
Mr. Skura. He was trying to get us down and drag us right down 
in the gutter and lie has made statement, by hearsay, that I have 
heard, that he is going to drag us down and get rid of the reform 
groups, starve them to death. That is his one method. 

Mr. Kennedy. He was going to get you framed so you could be 
thrown out of the union ? 



7822 IMPROPER ACTivrrrES in the labor fieild 

Mr. Skura. So I could be expelled from 138 of the Operating En- 
gineers and have no livelihood whatsoever, to go back to laboring, or 
whatever I can do to make a living. He starved me for months. 

Mr. Kennedy. That is why he had you identified as going through 
a picket line 12 miles from where you were working ? 

Mr, Skura. Tliat's right, forcibly identified. 

The Chairman. Have you ever gone through a picket line in vour 
life? 

Mr. Skura. Never. I never intend to do it. This is my 21st year 
as an operating engineer in local 138. 

The Chairman. Any questions. Senator ? 

Senator Curtis. How long have you known Mr. Wilkens ? 

Mr. Skura, Lou Wilkens ? 

Senator Curtis. Yes. 

Mr. Skura. I have Iniown Lou Wilkens for the past 20 years. 

Senator Curtis. You have heard the charges discussed against him. 
Do you believe them ? 

Mr. Skura. "Wliat was that? 

Senator Curtis. You have heard the charges discussed against 
him about the picket line. Do you believe them ? 

Mr. Skura. No, sir. I think they are framing him. The}^ are 
trying to frame him so they can kill tlie reform movement. There are 
five reformers working for J. C. Peterson and the only way they can 
get rid of him is to bring charges against the master mechanic, wha 
is doing a terrific job. 

He is the one that kept the reform movement alive, who gave us the 
bread, not William DeKoning, Jr., or none of his stooges. "Wlien I 
went there to get a job, they slammed the door in my face and said, 
"Get out of here. Why don't you smarten up?" And I said, "I 
wouldn't do that. I would rather die first" and I would still rather 
die than go with a dictator. I will go on a little further. 

That is the way they have done this. They are trying to bring 
charges which are false against Louis Wilkens and myself. They 
figure if they get the master mechanic and Charles Skura, they can 
expel tliem from 138. He can put his goons in J. C. Peterson and 
wreck J. C. Peterson. That is his motive. 

The Chairman. All right, thank you very much. 

Call the next witness. 

Mr. Kennedy. Mr. William DeKoning. 

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

Mr. W. DeKoning. I do. 

TESTIMONY OF WILLIAM C. DeKONIBrG, JR., ACCOMPANIED BY HIS 
COUNSEL, JAMES G. BLAKE 

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

Mr. W. DeKoning. William C. DeKoning, Jr., 335 California 
Avenue, Uniondale, Long Island. 

The Chairman. "Wliat is your business or occupation ? 

Mr. W. DeKoning. I represent the International Union of Operat- 
ing Engineers, Local 138. 



IMPROPER ACTIVITIES IX THE Ll\BOR FIELD 7823 

The Chairman. In what capacity 'i 

Mr. W. DeKoning. As president and business manager. 

The Chairman. Business manager i 

Mr. W. DeKoning. Yes, sir. 

The Chairman. President and business manager ? 

Mr. W. DeKoning. Yes, sir. 

Tlie Chairman. You have counsel present ? Mr. James Blake rep- 
resents you ? 

Mr. W. DeKoning. Yes, sir, Senator. 

The Chairman. Proceed, Mr. Kennedy. 

Mr. Kennedy. You have been in Local 138 for how long? 

Mr. W. DeKoning. Since 1941. 

Mr. Kennedy. You came in in 1941 as what ? 

Mr. W. DeKoning. As an engineer. 

Mr. Kennedy. Where were you operating as an engineer? 

Mr. W. DeKoning. I was working at that time — I think it was for 
the Hendrickson Bros. 

Mr. KJENNEDY. For the Hendrickson Bros. ? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. That is the company we heard testimony about 
before this committee ? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. And your father then held what position ? 

Mr. W. DeKoning. He was the business manager of the local. 

Mr. Kennedy. How long did you work for Plendrickson Bros. ? 

Mr. W. DeKoning. Gentlemen, I don't remember. 

Mr. Kennedy. For how many years ? 

Mr. W. DeKoning. I have worked off and on for different con- 
tractors, such as Hendrickson and other contractors in the area. 

Mr. Kennedy. Since 1941 ? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. You became an officer of the union on what date ? 

Mr. W. DeKoning. I think it was in 1950. 

Mr. Kennedy. What were you 

Mr. W. DeKoning. December. 

Mr. Kennedy. What were you doing just prior to that? 

Mr. W. DeKoning. I was running a crane for the Lipsite Construc- 
tion Co. 

Mr. Kennedy. Where was that? 

Mr. W. DeI^oning. Napanoch, N. Y. 

Mr. Kennedy. Is that up-state New York? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. Were you elected treasurer ? 

Mr. W. DeKoning. I was appointed under the constitution as the 
financial secretary. 

Mr. Kennedy. ^Vi\o appointed you ? 

Mr. W. DeKoning. The line officers of the union. 

Mr. Kennedy. Who were the line officers? 

Mr. W. DeKoning. Mr. Sofield, Mr. Semilla, Mr. Bell, my father; 
I think those are they. They represented tlie officers of the union, the 
line officers. 

Mr. Kennedy. What position did your father hold at that time? 

Mr. W. DeKoning. He was the business manager and I think he 
was the president. 



7824 IMPROPER ACTIVmES EST THE LABOH FIELD 

Mr. Kennedy. He held the main job, the main position? 

Mr. W. DeKoning. Yes, sir, he did. 

Mr. Kennedy. And then you held the position — what was it? 

Mr. W. DeKoning. Financial secretary. 

Mr. Kennedy. Financial what? 

Mr. W. DeKoning. Secretary. 

Mr. Kennedy. You held that position for how long? 

Mr. W. DeKoning. Until 1953. 

Mr. Kennedy. And were you ever up for election in that position ? 

Mr. W. DeKoning. No, sir. 

Mr. Kennedy. What position did you take in 1953. 

Mr. W. DeKoning. The presidency. 

Mr. Kennedy. You became president then ? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. Were you elected to that position ? 

Mr. W. DeKoning. No, sir; I was appointed by the line officers. 

Mr. Kennedy. Who were the line officers then ? 

Mr. W. DeKoning. I think they were the same respective officers. 

Mr. Kennedy. What was your father doing? 

Mr. W. DeKoning. I think he retired at that time. 

Mr. Ivennedy. And you took over his job ? 

Mr. W. DeKoning. Yes, sir, I did. 

Mr. Kennedy. And he became president emeritus, did he? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. And you held that position for how long ? 

Mr. W. DeKoning. 1 held that position until 1954. 

Mr. Kennedy. What happened in 1954 ? 

Mr. W. DeKoning. In 1954 I was convicted of coersion, a misde- 
meanor. 

Mr. Kennedy. You and your father? 

Mr. W. DeKoning. My father was convicted of — I forget. 

Mr. Kennedy. Extortion ? 

Mr. W. DeKoning. I think it was, yes, extortion and grand lar- 
ceny. 

Mr. Kennedy. A felony ? 

Mr. W. DeKoning. Yes. 

Mr. Kennedy. And he went to jail ? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. What happened to you ? 

Mr. W. DeKoning. The sentence I received was to stay out of labor 
for a year. 

^Ir. Kennedy. Were you put on probation, also ? 

Mr. W. DeKoning. Yes, I was. No, no, I was not on probation. 
Just to stay out of labor for a year. 

Mr. Kennedy. You retired, then, from the position of president 
of tlie union? 

Mr. W. DeKoning. Yes, sir, I went back to work. 

Mr. Kennedy. Did you come back into the union again ? 

Mr. W. DeKoning. In 19 — I think it was 1955. Yes, sir. 

Mr. Kennedy. 1955? 

Mr. W. DeKoning. Yes, sir. 

Mr. Kennedy. What position did you take then ? 

Mr. W. DeKoning. I was appointed the presidency. 

Mr. Ivennedy . You were appointed president again ? 



IMPKOPKH ACTIMTIES ES' THE L.\BOR FIELD 7825 

Mr. W. DeKoxixg. Yes, sir. 

Mr. Kexxedy. You have lield this position since. 1950, except for 
the year that you were on probation ? 

Mr. W. DeKoxixcj. Xo, 1958. 

Mr. Kexxedy. Yes, but you held the position, I believe with the 
union, from 1950 up until 1955 without liavino- aii election, except 
the year you were suspended because of beino- convicted for coercion 
of workers and contractors. Is that right ? ^'ou still had not been 
elected? 

Mr. W. DeKoxixg. I was not convicted of coercion of contractors. 

Mr. Kexnedy. What were you convicted of? 

Mr. W. DeKoxixg. I was convicted of coercion. 

Mr. Ivexxedy. Of whom? Who were you coercing? 

(The witness conferred with his counsel.) 

Mr. W. DeKoxtng. A contractor did not put one of the engineer.'? 
on the job to work. 

Mr. Kenxedy. You were coercing a contractor, then ? 

Mr. W. DeKoxixg. Yes, sir. 

Mr. Kexxedy. Then in 1950 you were appointed to a position, an 
important position in the union. In 1953 you were appointed to a 
position as president, of the union. You are convicted in 1954 and 
you have a suspended sentence — excuse me. The court rules that 
you will have nothing to do with labor for a year. You come back 
and are appointed once again as president of the local ? 

Mr. "W. DeKoxixg. Yes, sir. 

Mr. Kex'X'euy. That is in 19 — what ? 

Mr. W. DeKoxixg. 1955. 

Mr. Kexnedy. You never had an election up imtil that time? 

Mr. ^y. DeKoxixg, No, sir. 

jNIr. Kenxedy. Then you remained president and you are still presi- 
dent of the local ; are you ? 

Ml'. W. DeKoxing. Yes, sir, 

Mr. Kexxedy. We have had some testimony here regarding who 
can vote in elections, when you do have elections. What is the break- 
down as far as your local is concerned ? 

Mr. DeKoxixg. It is Vu'okcn into thi-ee categories, Counsel. It 
is engineers, apprentices, and oilers. 

Mr. Kenni:dy. Local 138? 

Mr. W, DeKoxixg, There is 138, 138-A, and 138-B, 

Mr. Kennedy. How many are in 138? 

Mr. W, DeKoxixg. Five hundred plus. 

Mr. Kexxedy. And 138-A is hovr many ? 

Mr. W. DeKoxix(;. Comparatively the sanie, five hundred and 
something. 

Mr. Kexxedy, And how many in 138-B ? 

Mr. DeKoxixg. I think it is two hundred and some. 

Mr. Kexxedy. And how many permit men ? 

Mr. DeKoxixg. Permit men vary. When there is an influx of work, 
there is more permit men than wlien the work subsides. We are a 
seasonal occupation. 

Mr. Ivennedy. Approximately what does it range from? 

Mr. DeKoxing. Anywhere at the present time from 200 to 500. 

21248— 58— rt. 19 21 



7826 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. IvENNEDY. Can the men in local 138-A and local 138-B vote 
in a ballot election ? 

Mr. DeKoning. No. Under the constitution of our international 
union, local 138-A are apprentices. They must be members of the 
parent body. They must be members of the senior local union of 138 
to vote. 

Mr. Kennedy. Is there any automatic test whereby men from 138-B 
get into 138 or men from 138-A get into 138 and are able to vote in 
the elections ? 

Mr. DeKoning. No. There is no test, Counselor. They serve their 
time. Up until a period of before a year ago, any member that 
wanted, it was liis prerogative, I will say, to transfer from 138-A 
local into the parent bod}', he could, by goiiii^ before the executive 
board and making application as to the machinery he was equipped 
to run, and tlien present himself before the membership and be taken 
in, and the vote of the membership in the parent body, their action 
would be final, whetlier he Mould become a member or whether he 
would not become a member. 

Mr. Kennedy. Is it based on one's professional skill ? 

Mr. DeKoning. Not necessarily, no, sir. 

Mr. KJENNEDY. Somebody can be very skilled, have a great deal of 
experience in operating these macliines, and yet not be able to get into 
local 138 and vote for liis officers ? 

Mr. DeKoning. Well, that is true ; yes, sir. 

Mr. Kennedy. And yet some})ody else who happens to be well liked 
and wlio has no skill at all or relativelv little skill can be taken into 
local 138 ? 

Mr. DeKoning. That could be true ; yes, sir. 

Mr. Kennedy. That is under the present arrangement? 

Mr. DeKoning. It is not an arrangement. It is the constitution of 
our international union. 

Mr. Kennedy. Do you approve of that ? 

(The witness conferred with his counsel) 

Mr. IOsnnedy. I think he can answer that, Mr, Blake. 

Mr. Blake. I am sorry, counselor. I reminded him of something 
he wanted to do in connection with that. 

Mr. DeKoning. Yes. I discussed that situation with some people 
about changing it. But at the present time we have a ruling in our 
organization, where the motion, I think, was made by John DeKoning, 
where a man would have to serve i years in the A or B local before he 
would be able to transfer into the parent local. That is on the statute 
books right now of our organization. 

Mr. Kennedy. There is nothing in the constitution that prevents 
you from taking people in from local 138-A into local 138? 

Mr. DeKoning. There is nothing in the constitution. 

Mr. Kennedy. That prevents vou from bringing people from 138-A 
into 138 ? 

Mr. DeKoning. No, sir. All they do is go through the regular 
ritual of tlie constitution. 

Mr. Kennedy. But according to what you say, you still have ap- 
proximately 500 people in local 138-A that have not gotten into local 
138. 

Mr. DeKoning. It is not that they haven't gotten counselor. It is 
their prerogative. Some of them don't want to go in. 



lAIPROPER ACTIVITIES IN THE LABOR FIELD 7827 

Mr. Kennedy. AVoiild you say that the majority don't want to go 
in? 

Mr. DeKoning. I would say "yes." 

Mr. Kennedy. Would yon say a majority? 

Mr. DeKoning. Yes. 

Mr. Kennedy. Why wouldn't they want to come in ? 

Mr. DeKoning. Well, a lot of the fellows that work are good op- 
erators and during the sunnnertime when there is an influx of work, 
they are put out as engineers, which is the same category as if thev 
were working as members of the engineers union. When the work 
sul)sides, they go and do the apprentice work during the winter 
months, and that has been the practice and policy. They fare very 
well to stay in the A local. 

Mr. Kennedy. A person in 138 cannot do apprentice work i 

Mr. DeKoning. No, sir. lie is not permitted. 

Mr. Kennedy. lie is not permitted to ? 

Mr. DeKoning. Not as an oiler. 

Mr. Kennedy. Can he do any other kinds of apprentice work? 

Mr. DeKoning. Yes. There are times when he does run a bulldozer. 

Mr. Kennedy. Then there is no problem. He can do other work. 

Mr. DeKoning. There is no problem. 

Mr. Kennedy. AnyAvay, you have a number of people in local I08-A 
that want to get into local 138-B. 

Mr. DeKoning. Ivet me say, Counselor, there is nothing stopping 
them, only tlie regular ritual of the organization. 

Mr. Kennedy. The regular ritiuxl of the oi'ganization evidently does 
stop them, because a lot of them cannot get in, even thougli they may 
have the skill to get in to practice their trade. 

Mr. DeKoning. Counsel, this is not a fault of mine. What have 
I got to say about tlie members of the organization ? 

Tliere is a che<-k and l>al:!nce system in our organization, as tliere is 
in any union. 

Mr. Kenxedy. AVhat does that mean ? 

jMr. DeKoning. In between executive board meetings, the ])i'esident 
has the power to do certain things which, of course, are acted on by the 
executive board when they meet, and tlie final say is the membership 
of the union. Whatever they say, that is what is done. 

]N[r. Kennedy. Do you mean your recommendation on these matters 
has very little to do with it ? Is that right ? 

For instance, your father's recommendation before that, that you 
be made secretary, or financial secretary; later on that you be made 
president; and later on, when you served your suspension, that you be 
made i)resident again — all of those things, don't you think, show that 
the leadership dominates and controls that local ? 

Mr. DeKoning. Well, no, I wouldn't say that, counselor, because 
there are times when I have appeared before tlie membership on the 
floor, and we have one situation definitely right hei-e that you heard 
this afternoon. We have a member of our union, Gan-ett Nagel, who is 
a good operator, who operates quite a bit of equipment, as far as an en- 
gineer is concerned, he operates engineering equipment and works as 
an engineer most of the time. But he has made application to become 
a member of local 138 and has been turned down, I think three times. 



7828 IMPROPER ACTIVITIES IN THE LABO;R FIELD 

I took the tloor the last time the man was turned down, and J jdeaded 
with the members of tlie orpmization to give this man a chance, by 
secret ballot, if necessary, to take this man into the organization of 
engineers. 

I was completely overruled. That is the situation where the rule is 
in the hands of the members of the union, not of the president. 

(The Avitness conferred with his coimsel.) 

Mr. DeKoning. Another situation which would aline with what 
you say is that we had a boy coming up for membership in the nnion, 
who I knew for many, many years, who happened to be the son of 
Louis AVilken. The membership turned him down cold. I pleaded 
with the membership that this hoy be taken into the organization, due 
to his father, how long he has been in the union, and his standing in the 
organization, and the membership did vote to take the boy into the 
union. But prior to that they voted him down. 

Mr. Kennedy. Yonr testimony before tliis committee, as well as 
yonr own history^ in the local, indicates that there is complete control 
and domination in the local by 1 or 2 people. 

Mr. DeKoning. The domination is not so, Counsel. It might be 
said as so, but I have definite proof, documentary proof. I don't 
have it hei'e at the present time, as yon kiunv. I liave asked you if 
I could take a little time to get it. There are different situations 
that I don't remember offhand, but they disprove that there is no 
domination of the organization. 

Senator Cuirns. May I ask a question or two ^ 

Mr. DeKoning, Yes, sir. 

Senator Cltitis. Have you ever presided over any hearing that 
resulted in expelling anybody ? 

Mr. DeKoning. Yes, sir; I have. 

Senator Ct'Rtis. In hoAv many ? 

Mr. DeKoning. Two hearings. 

Senator Cfrtis. Just two? 

Mr. DeKoning. Yes, sir. 

Senator CitvTis. Who were the charges against? 

Mr. DeKoning. The charges Avere against — they were charges 
against Walter Miller, John I)eKoning, and William Wilken. 

Senator Curtis. And that is all ? 

Mr. DeKoning. Yes, sir. 

Senator Cttrtis. "\^^iat happened to them ? 

Mr. DeKoning. Well, we had the lionest ballot association there^ 
and after the trial was over they were voted guilty and expelled from 
the union. 

Senator Cltitis. W\\o determined what their punishment would be ? 

Mr. DeKoning. The president of the union. 

Senator Curtis. And that Avas you ? 

Mr. DeKoning. Yes, sir. 

Senator Curtis. How long did you expel them for ? 

Mr. DeKoning. Tliere was no definite term, Senator. 

Senator Curtis. Just forever? 

Mr. DeKoning. Yes, sir. 

Senator Curtis. What were the charges against tliem ? 

Mr. DeKoning, Tliat they brought disrepute to the international 
union 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7829 

Senator Curtis. Tliat they did what ? 

Mr. DeKoning. Disrepute. Tliey brought our international and 
local union and the officers of the international and local union into 
disrepute. 

Senator Curtis. Don't frive nie that rigmarole. What did they do ? 

Mr. DeKoxixg. Well, they picketed our international union. They 
picketed our local union, with placards with remarks in reference to 
the officers of the union. 

Senator Curtis. Were the remarks to you ? 

Mr. DeKonixg. No, sir ; they weren't. 

Senator Curtis. What did the remarks say ? 

Mr. DeKoxixg, There was some slanderous remarks on the placard. 

Senator Curtis. What did they say ? 

Mr. DeKoxixg. That I liked to starve them, that DeKoning domi- 
nates the union, dominates the hiring and firing, and w\anted to starve 
their families and children. 

The Chairmax. Let me ask you something: If that is an offense 
for which they are expelled, what are you going to do wath these 
gentlemen here that testified under oath that you are that sort of a 
dictator? 

Mr. DeKoxixg. Well, that term "dictator" has been used 

The Chairmax. Well, that is what they said. They said you were 
a dictator. These men today have testified to the same thing just as 
strongly, under oath and emphatically. Are they to be expelled now 
because they come before this committee and tell us you are a dictator? 

Mr. DeKox'ixg. No, siree ; I wouldn't expel them. 

The Chairmax. Would you take the others back ? They didn't do 
any worse ? 

Mr. DeKoxixg. Well, I would ; yes, sir. 

The Chairmax. I would like to see you reinstate them immediately. 

Mr. DeKoxixg. I would ; yes, sir. 

The Chairmax. Can we have your promise of that ? 

Mr. DeKoxixg. You can have my promise. Senator, but there are 
members of the organization. 

The Chairmax. You can have them reinstated, if you will. 

Mr. DeKoxixg. I will do everything in my power. One of those 
men is my cousin, my own blood relative. 

The Chairmax. Let blood be a little thicker than water in this 
instance. Take him back in. 

Senator Curtis. You talked about bringing the local and inter- 
national union in disrepute. When officere of a union are convicted 
of a crime, does that bring them into disrepute ? 

Mr. DeKoxixg. Well, I would answer it this way 

Senator Curtis. Well, does it? 

Mr. DeKoxixg. No, sir. 

Senator Curtis. It doesn't bring them in to disrepute? 

Mr. DeKoxixg. Not in my case, no, sir. 

Senator Cx'RTis. I didn't say anything about your case. I said if 
officers of a union are convicted of a crime, does it bring the union in 
disrepute, or does it bring the criminals in disrepute? 

Mr. DeKoxixg. It is according to the crime, sir. Would you call 
why I was convicted of a crime, trying to put a member of the union 
to work ? 

21243 O— 58— pt. 19 22 



7830 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Senator Curtis. Well, you testified here that you were convicted. 
It is your contention that does not brin^ the union into disrepute? 

Mr. DeKonixo. I agree, yes, that I plead guilty to coercion. 

Senator Curtis. But that does not bring the union into disrepute? 
Why don't you bring charges against yourself and expel vourself for 
life? 

Did you ever hear anything about equal justice ? 

]Mr. DeKoning. Well, Senator, the members of the union have that 
right. They have that right to bring charges against me. 

Senator Curtis. Would you permit all the members of the parent 
organization and A and B to vote in a secret ballot on whether or not 
to expel you ? 

Mr. Dp:Konixg. Senator, I did that. 

Senator Curtis. You permitted all of A and I^ and the parent or- 
ganization to vote in a secret ballot on whether or not to expel you? 

Mr. DeKoning. Yes, sir — not to expel me, no, sir. There was quite 
a discussion going on in our local union that the business manager 
of the local was never elected to the office. I went to our international 
president and I told him what the situation was, that the reform 
group in the organization wanted the A men in the local union to vote. 

As I said before, we have a constitution that we must abide by, and 
we do that. I asked special permission from our international presi- 
dent to give these men that are in the branch local unions the power 
to vote. I called a special meeting of our local union, and I pleaded 
as the business manager of the local union to give each and every man 
the opportunity to run for the office and for each and every man to 
vote. We had the Honest Ballot Association there and held it in 
secret ballot. 

Senator Curtis. But you never let them vote on whether or not 
you should have been expelled by reason of your pleading guilty to 
a criminal charge? 

Mr. DeKonixg. I have never been brought up on charges in ref- 
erence to that. That is the j^rerogative of every nnm in our union. 
If they think I have done something detrimental to our organization, 
they have that right. 

Senator Curtis. We have had testimony here today by individuals 
who have disagreed with the top members of this committee, who have 
appeared in the little room, have had the windows shut down. Is that 
true or isn't it ? 

Mr. DeKoxixg. I would say no. Senator, because these men, there 
are 1,200 members 

Senator Curtis. Is it true or isn't it ? 

Mr. DeKoxixg. I would say no, it is not true. 

Mr. Kexxeov. Do you know (reorge Welbourne ? 

Mr. ^y. DeK()xix(j. Yes, sir. 

Mr. Kexxedv. Is he out there with you ? What is his position out 
there ? 

Mr. W. DeKoxixc;. He is a member of the union. 

Mr. Kexxedy. Is he a close i)ersonal friend of yours ? 

Mr. W. DeKoxixg. Xot necessarily. He is a member of the union. 

Mr. Kexxedy. What section of the' union? 

Mr. W. I)eKoxix(;. He is in 188. He has been transferred. 

Mr. Kexxedy. When was he transferred ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7831 

Mr. ^y. DeKoxixg. I think about 2 years ago. The first time he 
came up, he didn't haA'e 4 years in the union, and he was turned down. 

Mr. Kexnedy. Do you know liis police record ? 

Mr. W. DeKoxixg. Xo; I don't know his police record. 

Mr. Kexxedy. Do you know that he was arrested in 1949 ? Do you 
know what he was arrested for? 

Mr. W. DeKoxixg. In 1949? 

Mr. Kexxedy. Yes. 

Mr. W. DeKoxixg. No, sir; I don't. 

Mr. Kexxedy. Well, it was a very serious crime, and he was ulti- 
mately convicted in 1949 for third degree assault. Did you know 
that? 

(The witness conferred with his counsel.) 

Mr. W. DeKoxixg. Well, I don't know that. I didn't know that. 

Mr. Kexxedy. What about Akalitis? Do you know Akalitis? 

Mr. W. DeKoxixg. Yes, sir; I do. 

Mr. Kexxedy. How long have you know him ? 

Mr. W. DeKoxixg. I have known Albert about 5 years. 

Mr. Kexxedy. How long has he been — is he associated with the 
union ? 

Mr. W. DeKoxixg. He works at the trade ; yes, sir. 

Mr. Kexxedy. What does that mean, that he works at the trade? 

Mr. W. DeKoxixg. He is an engineer. He works at the trade of 
an engineer. 

Mr. Kexxedy. Is he in the local ? 

Mr. W. DeKoxixg. Yes. 

Mr. Kexxedy. What number is he? 

Mr. W. DeKoxixg. 188-B. 

Mr. Kexxedy. 188-B? 

Mr. DeKoxixg. Yes, sir. 

Mr. Kexxedy. Did you have some conversations with him prior 
to the time that he entered in 138 ? 

Mr. W. DeKoxixg. Yes; I knew him. I knew him before that. 

Mr. Kexxedy. Did you oppose him as being a member of 138 B ? 

Mr. W. DeKoxixg. Xo. 

Mr. Kexxedy. You did not think he would bring the union into 
disrepute? 

Mr, W. DeKoxixg. Counselor, I ^feel that the situation is such that 
a man has the right to earn a living. 

Mr. Kexxedy. Yes. 

The CiiAiRMAX. There are some men sitting behind you that want 
that right. 

Mr. AV. DeKoxixg. Senator, the men sitting behind me earn any- 
where from $7,500 to $12,000 a year. That is documentary proof that 
I wish to prove. 

The Chairmax. In spite of the fact they were expelled from the 
union? 

Mr. W. DeKoxixg. Well, as far as the action of the local union, 
there is nobody that takes their job away from them. 

The Chairmax. All right. Proceed. 

Mr. Kexxedy. What about Akalitis? 

Don't you think having him associated with the union brings the 
union into disrepute, wliicli is what you are trying to avoid, I under- 
stand ? 



7832 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Mr. W. DeKoning. Well, Mr. Counselor, there are many men in 
the organization. I don't ask for their records as to whether they 
are good, bad, indifferent. 

Mr. Kennedy. You seemed worried and upset about somebody 
bringing the union into disrepute. 

I bring to your attention George Welbourne, who has been convicted 
of a serious crime, who has been charged by members of your local 
with coercive tactics. 

You have Akalitis, as lias been brought out, who is in your local, 
associated with your local. 

Mr. "\V. DeKoning. Counselor, let me explain something. 

Mr. Kennedy. T^t me finish. 

Mr. W. DeKoning. If he was in your local, and it is how you feel — 
it is not I, but the members of the union who bring these feelings. 
It is not I. It is not my union. 

Mr. Kennedy. How do you get the position when you are brought 
down from upstate New York and made financial secretary of the 
local? 

Mr. W. DeKoning. When I was brought down from upstate New 
York, I was called by my father. 

Mr. Kennedy. How were you made president of the local? 

Mr. W, DeKoning. Voted Iby the line officers of the union, in accord- 
ance with the constitution. 

Mr. Kennedy. It seems to me that all of these facts, and your 
denials of the facts that you dominate and control this local as you 
do, makes no sense in view of what has happened and in view of your 
own position in the local. 

If anyone has brought local 188 into disrepute, it has been yourself. 

Mr. W. DeKoning. We can argue that situation, Counselor. 

Mr. Kennedy. Well, Mr. Chairman, the facts are established, and 
the facts are in the record. 

Mr. W. DeKoning. I would like to refute those facts, and be able 
to bring documentary proof. Senator, on Monday, if I can. 

The Chairman. You do not have it today ? 

Mr. W. DeKoning. No, sir; I don't. 

The Chairman. All right, then. We assume we have concluded 
what we can do today. 

I was very sincere in what I said about reinstating these men. 

Mr. W. DeKoning. Yes, Sir; and so was I. 

The Chairman. I will ask you to give me a report in 10 days as to 
whether they have been reinstated or not. If you want to 

Mr. W. DeKoning. I have the membership to consider, and I have 
to present it to the membership. 

The Chairman. You can call a meeting and present it. You can 
do a lot of things with a few members present. I am sure you can 
present it. 

Mr. W. DeKoning. I heard that testimony ; yes, sir. 

Mr. Kennedy, I want to find out one thing on the matter that 
Senator Curtis was asking about. 

On the strike tliat took place, on which jve have had testimony, did 
you consult with the employees, people working there, as to whether 
a strike should be called ? 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7833 

Mr. ^y. DeKoxixo. The reason that a strike was called was not a 
sitnation or a grievance of the employees. It was a breach of contract 
with our local union. It was a breach of State law. 

Under section 220 of the State labor law of the State of New York, 
a man must pay his f rino;e benefits, or else get himself in what we call 
a blacklist state. 

Mr. Kexxedy. Did you consult with the employees? 

Mr. W. DeKoxixg. No, sir; I sent a teleo;ram to the master 
mechanic in charjOfe of the men. 

Mr. Kexxedy. Did you tell him in that there would be a strike? 

Mr. W. DeKoxixg. No, sir; I wouldn't say that in a tele^^ram, with 
the situation, with tlie laws beino: as they are. I told him that the 
men would take the necessary steps. 

Mr. Kexxedy. Do you not think the employees, the men working 
there, should have something to say about it ? 

Mr. W. DeKoxixg. It is a violation of the contract. 

Mr. Kexxedy. Why didn't you consult with them ? 

Mr. W. DeKoxixg. They were consulted when they met the picket 
line in the morning. It was their prerogative to go through that 
picket line and work or refrain from going through tlie picket line. 

Mr. Kexxedy. You are talking about the fact that the membership 
are the ones to make a decision. 

Mr. W. DeKoxixg. This is a decision that was made by the office. 

Mr. Kexxedy. Here, once again, is proof that the membership are 
not consulted and have no right and no say in the aifairs of the union, 
in the operations of the local. 

Mr. W. DeKoxixg. Well, during the time between meetings. Coun- 
selor, the office of the organization, or the decisions of the organiza- 
tion, are made by the president, and we had a clear-cut decision here, 
which was in violation of our contract and violation of the labor 
laws of the State of New York. 

Mr. Kexxedy. Are you going to drop the charges or have the 
charges dropped against Wilkens and Skura ? 

Mr. W. DeKoxixg. That is not my prerogative. If a man brings 
charges, the testimony is heard and a decision is made by the members 
of the union as to whether he is guilty or not guilty. 

Mr. Kexxedy. What do you do? What part do you play? 

Mr. W. DeKoxixg. As far as myself is concerned, the president 
of the union, under the constitution, acts as the judge, unless he brings 
the charges. Then in that case, an alternative is picked. 

Mr. Kexxedy. You consulted with Mr. Cominsky prior to the time 
that the charges were drawn ? 

Mr. W. DeKoxixg. He came to me and asked me about it. 

Mr. Kexxedy. You are the one that imposes the sentence on these 
people ? 

Mr. W. DeKoxixg. Let me explain that. 

"Wlien a man is notified of charges, he is notified of what section of 
the constitution he violates. It is a man's prerogative to bring charges, 
and they are presented to the secretary of the union. 
(The Avitness conferred with his counsel.) 



7834 IMPROPER ACTIVITIES IN THE LABOR FIELD 

TESTIMONY OF EDWARD J. COMINSKY— Kesumed 

The Chairman. Mr. Coininsky, are you the witness that testified a 
moment ngo^. 

Mr. CoMiNSKv. Yes, sir. 

The Chairman. Before we adjourn, I want to ask you this ques- 
tion, and you are still under oath. 

I want to ask you now, after having heard Mr. Skura testify, after 
having heard liim testify that he was approximately 12 miles away 
all that day and could not ])ossibly have been present, I want to ask 
you again under oath whether you say you saw him peeping around 
the building? 

Mr. (\)MiNSKY. If Mr. Skura was 12 miles away, I must have been 
badly mistaken. 

The (^H AIRMAN. Are you ? 

Mr. CoMiNSKY. I am not going to say it was Mr. Skura, if he was 
12 miles away. 

The Chairman. If he was 12 miles ftway, why should you say 
you saw him ? 

Mr, CoMiNSKY. That is right. 

The (^iiairman. Then you were wrong about him ? 

Mr. (\)MiNSKY. I was wrong about him. 

The (^hairman. Then you are ready to withdraw your charges? 

Mr. Cominsky. I will withdraw my charges at the local ? 

The Chairman. You will withdraw your charges at the local? 

Mr. (\)MiNSKY. If Mr. Skura could prove to me. 

The Chairman. I did not ask what he could prove to you. 

Will you now withdraw them? Will you doubt what he says? 

I am going to try to see. If he has told us a falsehood today under 
oath, I am going to do my best to see that the processes of justice 
take care of him and send him where he belongs; and I am going 
to do the same with you, if you have come in here and willfully per- 
jured yourself, as far a§ I have anything to do with it. 

Mr. Cominsky, I am not willfully perjuring myself. 

The Chairman, Do you say now you saw him or did you not see 
him? 

Mr, CoMisKY, I will say there must have been a mistake. 

The (^HAiRMAN. You are mistaken ? 

Mr, Cominsky, Yes, 

The Chairman. You are ready to withdraw your charges against 
him ? 

Mr. Cominsky, Against him : I will ; yes, sir, 

Mr. Kennedy, There are chai-ges against Mr, Wilkens, too. 

The Chairman. What do you say about Mr. Wilkens? 

Mr. Cominsky. Mr. Wilkens? 

I will not withdraw my charges. 

The (^hairman. You are not going to withdraw those ? 

Mr, Cominsky. Xot foi- Mr. Wilkens. 

The Chairman. This is about as long as we can run this afternoon. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7835 

TESTIMONY OF WILLIAM C. DeKONING, JR.— Resumed 

Mr. W. I)eK()xin(;. This afternoon I heard testimony to the etfect 
that the ethical practices committee of the AFI^CIO did nothing 
for 2 years. 

The (^HAiRMAx. Took no action i 

Mr. ^y. DeKoning. The ethical practices committee did send in 
the representative, and there was hearinjjs, there was findings, find- 
ings published. 

The Chairman. And findings have been publislied^ 

Mr. W. DeKoning. Yes, sir. 

Do we have them i 

Mr. Kennedy. What were the findings^ 

Mr. W. DeKoning. They sent in a representative by the name of 
jtalph Wright, and there was hearings. 1 think there was hearings 
for 10 days in the Commodore Hotel, 1 think. 

Mr. Kennf:dy. What were the findings^ 

Mr. W. DeKoning. I couldn't tell you otfhand. I will have the 
j-eport here for you. 

The reports are lengthy, let me say that. There are voluminous 
reports. 

Mr. Kennedy. They have not done anything about 188? 

Mr. W. DeKoning. Maybe they are feeling there is nothing wrong 
with 138. 

The (^iiAiRMAN. Have they said so ? • 

Mr. W. DeKoning. Yes. 

The Chairman. They have said there is notliing wrong with it? 

Mr. AV. DeKoninck Yes. 

The Chairman. I will be interested to see if they review this record 
and pursue it. I tliink there is plenty wrong with the whole outfit 
that we have heard about. 1 am going to refer this record for conflict 
of testimony to the Justice Department. 

I am getting pretty tired of this committee being imposed on by 
assorted lying. It is an imposition upon the Government. It is an 
imposition upon every taxpayer of this country. 

I want to urge the Justice Department to redouble its vigilance and 
see if we cannot get a little bit of cooperation as American citizens in 
the job this committee is trying to dp. 

Senator Curtis? 

Senator Curtis. May I ask you this question: Have you been here 
in the hearing room all afternoon. 

Mr. W. DeKoning. Yes sir, I have. 

Senator Curtis. You have heard the testimony about you permit- 
ting and tolerating and acquiescing in violence, committed with 
enemies. Is that true? 

Mr. W. DeKoning. Xo, sir, I never have. 

Senator Curtis. You never have. This testimony in reference to 
the old gentleman from a Virginia local being kicked in the stomach, 
did that occur? 

Mr. Adlerman. That happened at a different time. 

Senator Curtis. He was not present ? 



7836 IMPROPER ACTIVITIES IN THE LABOR FIEI.D 

Mr. W. DeKoning. I was present there, but, of course, I seen it 
differently tlian somebody else seen it. 

Senator Curtis. Were you presiding ? 

Mr. W, DeKoning. No, sir, I wasn't. I was in the back of the 
room. 

Senator Curtis. You saw it happen ? 

Mr. W. DeKoning. Yes, sir. 

Senator Curtis. Was the man kicked ? 

Mr. W. DeKoning. I would say "Xo." 

Senator Curtis. What happened? 

Mr. W. DeKoning. I would say that the armrest of the chair was 
kicked. 

Senator Curtis. In other words, the kicker missed ? 

Mr. W. DeKoning. He missed, yes, sir. That is, if he intended to 
kick him, yes. 

Senator Curtis. What did you do about it ? 

Mr. W. DeKoning. What did I do about it ? 

Senator Curtis. Yes. 

Mr. W. DeKoning. I got up out of my seat to go to assist it. 

Senator Curtis. To assist who? 

Mr. W. DeKoning. The fellow that was in the chair. He got up 
and moved to another chair. There was quite a few of us that w^ent 
to assist him. 

Senator Curtis. He was not kicked at all ? 

Mr. W. DeKoning. Not from where I sat. I couldn't see that 
close that he was kicked in the stomach. 

The Chairman. Did he say he was kicked? Did you hear him 
say he was kicked ? 

Mr. W. DeKoning. No, I never heard him say he was kicked. 

The Chairman. Was he in pain ? 

Mr. W. DeKoning. No, sir. He got up and went and sat in 
another chair. 

•The Chairman. He got scared ? He got too close to it ? 

Mr. W. DeKoning. I couldn't tell you that, whether he was or not. 

Senator Curtis. Do you expect to go ahead with these charges 
against Mr. Wilkens and Mr. Skura ? 

Mr. W. DeKoning. It is not mine to say. Senator. Those charges 
have been brought by a member of the union. 

Senator Curtis. What is going to be your position as president? 

Mr. W. DeKoning. I would have to hear the evidence. 

Senator Curtis. You heard it this afternoon, what was presented 
here, did you not ? 

Mr. W. DeKoning. I heard some evidence this afternoon ; yes, sir. 

Senator Curtis. Are you going to proceed with it tonight? 

Mr. W. DeKoning. No, sir. 

Senator Curtis. But you expect to proceed with it and take the 
evidence, do you ? 

Mr. W. DeKoning. Well, after hearing what I did here this 
afternoon, I am going to call a couple of fellows in to the office and 
ask them how much they did see, or what the situation was. 

Senator Curtis. You heard them testify today under oath, did yon 
not? 

Mr. W. DeKoning. Yes, sir ; I did. 



IMPROPER ACTIVITIES IN THE LABOR FIE1.D 7837 

Se^iator Curtis. And you heard the conflict of testimony between 
the man who brought the accusation and Mr. Skura? 

Mr. W. DeKoning. Well, of course, there is always a doubt of 
identity. 

Senator Curtis. You heard it, did you not ? 

Mr. W. DeKoning. I heard some of it ; yes, sir. 

Senator Curtis. And you heard that same witness state that he 
did not know when Mr. Wilkens arrived, how he arrived, what his 
mode of transportation was, or how he entered the building, or when ? 

Mr. W. DeKoning. Mr. Cominsky was not the only man on the 
picket line, Senator. There were quite a few men. 

Senator Curtis. We asked him to name the witnesses. 

Mr. W. DeKoning. I think there were about 10 men on the picket 
line, sir. 

Senator Curtis. Mr. Chairman, that is all I have. 

The Chairman. Before we recess, I want the following witnesses 
to stand : Peter Batalias, Lou Wilkens, Garrett Nagle, Charles Skura. 
John DeKoning, William Wilkens, Edward Cominsky, and you, Mr. 
William DeKoning. 

Gentlemen, you will all remain under recognizance of the com- 
mittee, under your present supena, to reappear before this committee 
at any time the committee gives you reasonable notice of the time and 
place it desires to hear your further testimony. 

Do you recognize and accept that ? 

Mr. W. DeKoning. Is it possible to come back here Monday, Sena- 
tor ? I have additional evidence and transcripts. 

The Chairman. You bring whatever you have Monday. I do not 
say that we can he;ir you, but you bring whatever you have, and at the 
proper time. We will hear you. You wnll be given a further hear- 
ing, if you desire. 

Mr. W. DeKoning. I do desire. 

The Chairman. That will be as soon as we can arrange it. 

I want to make this announcement, too. This appears to be a 
pretty bad situation. I want to make this announcement. While you 
are under recognizance as a witness of this committee, I, in my judg- 
ment, believe that the Federal courts have jurisdiction, and any threat 
or intimidation of violence, coercion, or any act toward a witness who 
has testified here, any of these witnesses, shall be regarded by me, and 

1 shall ask the committee to regard it, as contempt of the United 
States Senate, and we shall undertake to proceed accordingly. Is 
that understood ? 

All right, with that understanding, the committee stands at recess 
until 2 o'clock Monday afternoon. 

(Whereupon at 5 : 30 p. m., the committee recessed, to reconvene at 

2 p. m., Monday, January 27, 1958.) 

(Members present at the taking of the recess were : Senators McClel- 
lan and Curtis.) 



APPENDIX 



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7844 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 6 












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IMPROPER ACTIVITIES IN THE LABOR FIELD 7845 

Exhibit No. 7 

SELLER'S «n b«NM« Ralw H 

ESCROW INSTRUCTIONS ••-"•S'^^ii. 

Stockton. Cilifomk, l>ecsnl;er 13 ,195 5 



Vr« i, will b«d,ou Oe«d 

necutedbr 'c&jroci otivera ei .•>r.i<" v«»rs 

covering Hk iotiowini detcnbcd propetty '^ ■' ■*■ 

Ffi jf .p 1 :. , OL"-" rp ,"; I. ^le >6ic !,r, :il ^ 

which you are tuthoriscd to dctiver to £rfr,toe o, v»^Oir rcpr^Kotitives 

upon paytnew to ran wHhin 30 <iiys torn dttc hcreolfor my tccount, the jum of J cCl.DDO»,00 C9 3h 





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Froca nk) nun yon ire to pay and deduct the foitowinf 


tcc<Ht)ii4 ieet lor i) ^...ixXJPiiu.ii.. TC !ffi 5 


Cooreytactot of 


Municipal tad/or Irr^ion Dt»tfi« Report 

Policy <A Title tnsuraoec Fe« 3 


Kevesue Stamp $ 




Pay all encumbrances i»Ba« »aid property indudiaj 












yoor check for bciajoce 

Id the event that the condhitmi <A thii eicrow have not been c<mipUed with ai &e expiration oi the time pro- 
vided for herein. yoM are innrccted to compictc the wae at the cariieit poatiUe date rhereaher, unlets 1 shaii 
have made written demand upon you tor the retnra ol «i< iostramcntt dcpottted by me. 

SICNATtntB ^ -^4*^. .-A0DBBSS 



We hereby acksowhN^K rcccl^ ol 



..to be OMd ia accortiasoe widi above hmnsetioni. 
STOCKTON A15T1ACT AND TTTIS CO. 



2124.3 O— 58— pt. 1!)- 



7846 IMPROPEIR ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 8 




IMPROPER ACTIVITIES IN THE LABOR FIELD 7847 

Exhibit No. 9 




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7848 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 10 

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gP*! 1 p-pfg AM Inguinal R«fw I 

ESCROW INSTRUCTIONS ^"'-"^ ^- 

Stockton, C»liiorni«, J 1. -'.-.:. ,195 

j ^yt^pii j^ lislfasf agd TOi pjiwj ljgj^ 

1, hand you Ue2-I 

executed by .. ■- -._. - :x..xl jQL.ilUjf. _ ... .„.,_ i'.i«-' , 

covering the following devrrihed properiy: 



which you arc luthorucd to dfiivfr t - t: or 1 C;„r rrprevcntati 

upon payment to you within ^ . davs *rf>ni djic hereof lor mv account, the mm of $...,., ji 



}xi3 irp 



From laid nun you are to pay and deduct the following. 
Pay coniminion to u - .,: .-.:.) . 

Recording fee* for 
Conveyancing of , 

Nfunicipal and/or Irrigation District Report 
Policy o! Title ln«urance Fee 
Revenue Stamp 
Escrow Fee,, - -, 
Pay all encumbrancej againM laid property including 



your check (or balance _ .,» ''^ 

In the event that the condition! of this escrowHtntc not bc»o ccnnplied with at the expiraiion of the linic pro- 
vided lor herein, you are instructed to complete the imnie at the earlieit possible date thereafter, unless I shall 
have made written deCiand upon ytp fqr tty/rettirn of all instruments deposited by me 



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SICNATUSJB. /. ^^^. '■' / - -^ ~> UNDRESS 



lyiONE 
We hereby acknowledge recei 



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to be used in accordance with above instructions. 
STQCKTOr^ ABSTRACT AND TITLE CO. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 
EXHIBIT No. 11 



7849 



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S. SHAMSDN MID ED OOHiM 



3 or THE lirrEHKATIMJAt UMIOM OK 



City of Stockton 




3&n Jo&quin 

A portlors of Section •ighlser, U8; of y. «.. ifeEa'j .;kant, jd.-o tAi-L.caUr.;. 
d«»ertb»d a* follow* i 

Coi«B«ucin« »t a point bwiring South 16'55' &a»t 209.50 fe«t rrom tne Southeas 
corrtar of Oak Park Court Subdlviaior,, filed for r«conl Sov»mfc«r IP, i-*!,!, in 
Vol. 11 of K»p» and Plat», page 74! tnw.c* South 73*05' Waat, alon« a 'ire "} 
f«»t South of and parallel to th« South propsrty line of the Aa.pir' "' lI ai ! 
Luaber Company, a corporation, a» deecribod In Deed recorded Sefte-.^e' 2 , 
m Vol, 10S2 of Official Seeonto, page 397, a diataiioe of WO feet to tni- v^r-.r -a^t 
,-T .sr of parcel 2 of the land deecribed in Deed to Karl Ho«» Poet Ko. Ifc AKer.iat -i. .i 
r»-orded September 28, 19UE in Vol. ili.6 of Offf'cial Records, page 33?, S«r Joa.-ij.,r o-tt 
K«cor4»i thence South IT'SS'lO" Ea»l along the Ea»t line of parcel 2, of sajd A-npr- -<u 
:.egior land, a dletarce of 350 feet to the Sortheaet comer of the land deecnted ir j9-i 
to Operating Engineers, etc., recorded March 15, 1955 in Vol. l'"<f of Official Kecorda, • 
'3, San Joaquin County Hecorde, and the true point of beginning of the herein descnce:! 
trsctj thence continue South 17*58'10'' E«»t along tne £a»t line of »ald land recorlel r 
Voj. 1728 of Official Record*, page 53, a diatance of 316.79 feet nore or less to the 
Northeast comer of the land described In Deed to Parker W. Beilke, et ux, reeordel Cmj 
" In Vol. 1768 of Official Records, page 82j thence South 72n0'30" West along the Nor 
•> of said Beilke land to a point in the S»»t line of California Street; thence North 
\}' West along the Sast line of said California Street, a distance of 312.10 feet aior^ 
• .ess to the Northwest comer of said Operating Engineer* land, recorded in Vol. 1728 o 
Official Records, page 53i thence Horth 71°2i.' East, along the North line of said land, a 
distance of 346.96 feet to the Sortheast comer thereof, and the true point of beginning. 
TOGSTHEB with an *%s*a«nt for roadway purposes OTer a strip of land 25 feet in width, the 
West line of which is described as follow*: Beglnndng at the Northeast comer of the abo 
deecribed land, thence South 17*58'10" East a distance of 805.69 feet to the Southeast co 
of the land described In Deed to San Joaquin Medical Arts, recorded January 27, l'^5o in V 
1852 of Official Records, page 56a, San Joaquin County Records, and the tersdnation of *a 

Jii •Btli'fHS Whrrrof 



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7850 IMPROPER ACTIVITIES IX THE LABOR FIELD 

Exhibit No. 12 




IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 13 



7851 




7852 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 14 









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IMPROPER ACTIVITIES IN THE LABOR FIELD 7853 

Exhibit No. 14A 





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7854 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 15 



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IMPROPER ACTIVITIES IN THE LABOR FIEI^D 7855 

Exhibit No. 16 

Jut* k^ 1952 



Vr. P»t Clancy, 

&«n Fr«nel«co, Caliroraia* 



WATER E«PART^SNT USD 



^••r Sin 



«fith r«l>r«nc# to your l«tt«r of May 20, 1952, 
thlf offlca has not racaived your offer as Indicstad In 
yowr la t tap. 

For yoxir inXomitl<m, you &T0 advlaad tMt tha 
parcel you i^afar to Is auw beiag procassad by th® * ublio 
Utilitlas aosiBii&»lc»r* for s«Xa« Waau &nd If tha data of 
sale Is sat, I will sft« tl-iat you receiva a notice of tha 
tifsa and plaoa th&t bids will b« raeaivad. 



Very truly yours, 



JH/rg Dlractor of Property* 



ect Public Utilltias Coa»issioii 

Attantlon: Kr. J. H, Tumar, 



7856 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 17 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 7857 



Exhibit No. 20 



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7858 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 22 




IMPROPER ACTIVITIES IN THE LABOR FIELD 7859 

Exhibit No. 22A 

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7860 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 23 



EXBCUTOVE BCtfyFO) MIHOTES "' 

Local XJaitm Ifo. 3 

klk Valencia Street 

San Francisco, California juiy 3, 1956 



There being no further busineaa to come before the meeting, it adJcRurued at 
9:30 p.m. 

Respectfully aubmitted 

C. F. Maldievs 
Recording Secretary 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7861 



>y J'cib.T 3. Wttiw.fs »;<!«» > '-.t^ i*l.'.-*-C. t- si* h&s* la AitIkocw. iteffuOarl^y ae^na* •&& 

?rt« Vot:j4r Tr*i Z- j»<«^tca »'L3 .» •tttfcJUn^ eoiiccil durlBa th« svhkk ••saloB. 
$4«rjl*r^vr ac»-.«*3 j>.-:a »tx-cji*(l Ui per:!., "rr'.wr PVr^ttcw ♦<> ^■t.r iu*!i *t tri« r»te eT i^.OO 
jair bol-.*' Mi-i'jK i'^'V la ctvrv'i'< •.->»: i •' -. " . .r.-.'r.t'. 

TttM. to-; 9w. ;«iii'»«»l Offlo.". r-*r.i!K«rXia?. {.:O.CO ;cM oa appa.icai«,tan by «*«rald y. 
,'i»«* Uj r^fvrCer:. ac^t^irV ■.<cr'al »nv' Kccrj^eid 'x rtfuad t;? ..' f^'.c cc i>^^llo«tio«» by 
JeWLld Y. Jof«i». C»rr' ! 

Trow tj« t«i-„ r^«ri. -c . ;\ uc .-*oc«»»:;;i-Ej, v-a*-*--r >-'l2 WuliJOT b« aILaw«A to ji«y 

Tint ^»*rt«r b« byjl:^ to V.'^ ..»..c*i ^j«rVer'e i4u««. SwtUjwV *ov»4 •«iS n»-» >a> 4 %o 
iB. 4h* r«'a.iiwni^>ti.>t: X' '.*.- Saw, .-esMn U> Of.'ice. Cxirltti. 

Tree l.vt'ier El^Jfcaate I'.fxrr^ir.JLat, i^ T-^A ji' ij^.^V i«lu 'JO a^-;. LloaitlLaa Jiy 

jwo'.- ...; :.; -: ..-.., ;.. . ^ ..-..:ca'. ?«■ it* 

aocdl Stwlln* r>-.; .. TCti,or ^. A. >- :•-■.■. . Crj.-rlz'.. 

Kwoutlv* A»rd ffw tb(» ocalng election at ntttaroftllooal ^.' x^t>it. :.i. w*c rstfiuUKrlor 
■OTtrd ami <i*«3iit\»4 Utat U'la Swtajtlw 3c«rtf rcy^uauLu;; to t, o Ji-lo:. '.ct: Bu;t«rt af 
■antloiMa m tba ;4aqpiiL«^ bod that It ><e ojbalttad tc th4> smAara 
Dam- Carried. 
rrcai Vtm BHt £ay Labor JcumU. w n uaa tlag pwrcta«o of • $2^.00 aArartlalJig 
]MCMl«rXy aennvd itcjd a*jeod«4 t- - jrc .ar^ ^-?>.0C adrertialng sp*ea. Cavtr^^. 



s V A. 



21243 0— 58— pt. 19- 



7862 IMPROPER ACTIVITIES IN THE LABOR FIELD 

EXHIBIT No. 24 




EEBCQTIVE BOARD MIBUEB8 

L<»al Oxion Ho. 3 

kTk Valencia Street 

Saa Fraxusisco, California July 3, 1^ 



There being no further buaiiiAss to cone before the meeting, it adjourned at 
9:30 p.a. 

Respectfully Bubrd-tted 

C. F. JtethewB 
Recording Secretary 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7863 




Fro* th» R«no OffJca r«co«»«niUri<; rtfund of $6. CO p*td en dtpo'.i- of ;r»nff»r 
by John D. Itathtw* »lnct h« h«* r»tuin«d to hie ho<»« In *rl»oo*. f>t;L.»''v "ovod »p<J 
••cond«d to rtfund $4.00 ptld on dtpotlt of tr*ntf*r '.o John D. Jbine»i. :»rri«d. 

Froa f.roih«r Fr«d E. S«rittofi who li *tt«.-.d!riq i.hoo; iliolug ih« (.mwi («««)on. 
((•9iii«rly BOvtd arvJ ««cond«d to ptrait Brjt.h»r Str»t*.or. !" p*y due* »t th; '!■•• ;t J2.0C 
p«r aonth ahl)* h« It Itttndinq school. Ctrttel. 

Fre» th» Sin a«f«ti Ctflct r«ccia»ena !na $:,.(.». r^H on «nj>;ic»tici b» J«rild 
V. Jon«» ta refund«^. R^^ulsr ■, irovj tna !«car.-ito 'i r«funi Ji.'.OO paid en .'opllcitlon 
by J«r*Id V. Jonas. :»irlaJ. 

Fro« tha S»cra.»cnlo r.ffl:« ra.caaia^dlnq Brother JI« n»[%t: b« »llo<»ad to pay 
duas »t lh# rata cf %2.CO par Bonth wMla standing «-.h^?i, sr.ri -Ni; tHt ova?p»y»ant 
of tha flrtt qoirtar ba spDlleJ to his »«cond q-j^rtfi's 'u««. f-iqj.JiTly «o«aJ snd 
sacondad to cohlvt In th* i«i.oaK<r ji' ic.i of 'h« 3*cra»«ritc Qffica. Carrlad. 

FroB Brothai Edgecc.«b» rtcsiweiJlri) raft-Kt of $3S.'X) paid en aopllcatlon by 
Thoaws D. Jordan. Ravuiarly •ovtd ana stc;f<ied to rafurvJ J35.0C paid an application by 
Theaas D. Jcrc<«n. Cairlad. 

Ragularly jKivad and stcondad to pay Jl.W; fa» for wtthdiaaa! card fto« tSa 
Goc<i Standing Tjnd far Brothar <".. A. ML.c»rcils. Carried. 

A dlfcusil-T «•» haid I'-^afiJIn? 'ha pa«p< :ff ani i -c^ataandst Ions of tha 
EKacutlva Board f.>r tha c}«li>g a.a;tl3T of In«arnit 1j.-'»; flcr-s. It was ragvlarly 
iK>vad ar.d sa:ondid that tha F.xa.oi'.ve Po»-d rtci»«ani to "n* '.-.Icn th» s'jpoi-rt of tha 
candl«*taa «>cnt.lon«d In tha paaprlai inj th«l l; b» »utail"»^ 'o '.ha aaafcars thtauflh 
tha Enginoars Na»». Carrlad. 

Ragularly i«vsd and sso.'^dad t:.at ilCvOO b» slloci'.ad fro» the dafansa fund 
te b« usad !n tha jntarna tlonal Election and that Biotdart C.ancy and Vandawark b« 
dirac»»d to »'. 1 on all of tha Locals they cai laach In t.\a tiata iaft befoia alactlon, 
and t-hat thay bs fv.-rth*r dliactat' tw offer al; the assljtance to the Lo-als In this 
•Itetloa. Carrlad. 

Fro* tha Ea»t Bay Labor Journal ra<tuas'.ln9 purchaia of a S2^.00 •dvartlalnfl 
HMca. Ra^ulai.y Mevtd and seconda4 to putchasa tS^.Cu advertising space. Carried.^ 



7864 IMPROPElR ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 25 



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IMPROPER ACTIVITIES IN THE LABOR FIELD 7865 

EsThibit No. 26 
Expenses in connnection with investigation and work 
connected with Anti-forces as authorized by the Union. Enter- 
tainment, dinners and hotel expenses spent on legislative 
committees, opposing legislation that had been fostered by- 
groups within this Union. The following was spent: 

Los Angeles, January 1955 $ 421. 00 

Fort Bragg, Eureka & Crescent City, 

February and March 1955 . . 525. 00 

Reno, February 1955 373. 00 

Fresno, March 1955 289. 00 

Redding, April 1955 431. 00 

Marysville, May 1955 . 97. 00 

Sacramento, May 195^ 101 . 00 

Total $2,237.00 

Spent the above and received reimbursement in 



total. 






7866 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 27 

fcXBCtOTVK aOAR3 NjttWBB 

6«i rTCMlMO, CalifomU *<»«* 14, 19>6 

tbi aMtlas ¥*• oiOlad to oriwr •! 8:15 p.»./ Prwlatot Claacgr mwlAlas. 




VYOB tte (MJmbA Atw CouDCll, Cirl S«aut«, rr^ruc^ttinc cotrtrltMttloB tOMkrt 
flmnetoc th»lr Olrl Seout Caep. B»eels^ •»< ft!**. 

Trim ttM a»a Kr«acl«eo 'jKbor Council reg«««liQg riamelal aad aena mfvoart 
far tb» OptlcAl KKtvaicUiM, local 16791, •aetetA in • luckout anA •trik* aiKlMt 
r«t*il (^tleal dMl»i«. IkKwivvd aotf filvd. 

rroi tte I3lMibl*d MMriciiQ VtiUaemm r»?u**tlnc purchaa* of four ttelart* to 
ttelr Itanrl&l Diiy 81km. Ragulurly acmid mA Meooditd to purchMe iloktit* la tte —wt 
«r $10.00. Curled. 

rroB the V-Ma PrtuMisao Qulld for cnp$I«4 CbUftren, lae.» wgwtlag puraiMM 
of XMt«r 3—lM. itegulftrlor aovwd ud Mcooted to ptircitaM EkMOs U tte awMot of |t.QO* 
CMrrl«d. 

rnM BrotlMr Clinton R. vilMotk, •wipandMl Mmbcr, r*gBrdiiic («ia«t«t«aMt. 
tesalArly ncrv^ad and Mcocdod Brother wlHtott BRUit pay fall relutataiiMit f«M. CMilalU 

Frca Brotter Eaamxafco rwooBaiaAlnc $50. CC paid oa applioatioa by Karl 
■ ■ l a — I ba rw'aBdad to hla alne* b* rl^ibSfull)^ beloDSi to ttw Labortra Ualon. Mpilayly 
■^•d Mid a a con da d to eonour In racoaaendatloa otf Motbar WSgtoa^o: Carrlad. 

rm aratter n aa m i lanMauandliij Brothar S. K. roatar V* pemlttad to p«]r iM» 
«» It.OO par Booth alaaa to la a flood rletia la Panpatirood. ltiNraarl]r wo ^ad aad aMttiii 
to pamtt arotter 7oatar to paor duaa at 12.00 par susith for tba f Irat foartar. Carrtod. 

Oootor'a oartlfleato rrw Mother a. R. Forth, abo haa nevar had aajr *MNi fMB 
toa Oead ttaMUac And aad vto vlU not ba abla to ratura to work, napilailj avtod mA 
••aaated to gfm% arottor I>BrUi a vltbdawal uard end to raAiaS aonay paid la 

a7 /^- 



IMPROPER ACTIVITIES IX THE LABOR FIELD 7867 

Frrtf Trother 'fin "<jv^e rccc»«i» t' : .j 9:tiV*.- J&c>. '. ' lc«» b« «:JuOi«»d 1» f»jf 
dues for tii6 lir»x (ja*»rtcr at . l.'.x p», ■• .r-A;i.in •;! ..■• :* ic « ! 1xxk< vxctlE. Rsfculcrljr 
■or.Ted ftod •ccQii:t*<i to coritu - !n vcaeix r«if. .; oi of :ixro'. i«r V«n WlnJtla. C«rrl«d. 

ri-aii Bapcrth«r .mresace recwMU^ln- Brc'-utr lv:u; ' au«»«r be »li3W»« to pay 4uM 
•i the rat« of .2.C'> !«:r eont^h aix>c« •->« la now ^tv^ndlne s?^>ool, after lupotltlac hX» 
•«r%'ic« •l.n<IjrB;i.i», o«r;. H ji.:«xl;/ EXT ■■ ■ aTd ie<- Jo* vc iopcur in ^'ecoawndatlOD at 
Brotoor L«wix:nnc. t.irrl-«(l- 

'irac r-fc^i^-r Jarr recocreodlr^ a-o^.w--- ■<. E. U'nrine a-/ •Olowtd ■ddltiooal iUM 
fro» Vh* y-.oi siaau:iv <>'Vixl uiA ;«o.«:-l a M jAiu.^. ccn... ;*c"»^*r-;' iaor«d «ud ■■eenatA 
to ooocur !n riK:iX:«»ailattc»-. of .4-»ther 3fcn . .*.'>rr';<i. 

aaewlarV ««»»<*> ^'^ scx-ciaaftd Uwt .n'^thcr MurlU^ P.. Coof^r be relMtatad «t 
cost to tUe U^lon. It la aot«4 i» haa twc r«>4w, ts - one lor IjC.OO »3aA am for $8(.CX>. 
Carried, (accey to be rcapilled and maber billed for aaLance) 

Regulnrl;' no%'ed a2d sesocded that new wmbera mad iranafers be aocayted w 
of April 7, .vn>o. Carried. 

In r^TiuN; tc the Plaa for Develoffneat Corporetlon for 'Middle laeoaa" OQ«v*z«tlv« 
Aptc ie aac :*r«u.cia.-o, i^ r^rcretary ¥«» Itistru'ited to get all the dat* be CM ecnwrlag 
azqr alxilar rlar^ la other cltlea aiid such oth«>r data »" im cau procure ragairtlBt tiUUi 
■attcr and .-i-xjrt uaX at a later date. 

1*. VE* reuyjjirl„- ivarei -^nd secotuJed tiw Si(»:n>tlv« Offloew U. iofitruetad to 
•eod copies ot vHcae rroolutiona to be acv«d u,^^ at the oext Coineatioii that are of 
iBtarcat to loca; So. i to 'v.11 delegatas to Mie Cocwatlon. Carried. 

'r.:«rc b«la« OG furt.Vr rusinene tc ooae before the Mreting It oAi man m A «t 
9i30 ».». 

Rreveetfuily auteitted 

C. r. NatheVB 
atcordlOf^ r«?«r«taj!y 

?»aa -..tvUttr Saraa rarr— iiiiltm t^7.50 paid m 8pi>U<«tlai ^ AlTrNi jr. Bai«n» 
»k«ilar2y ■»««« and aaooeded to concur la rwsunndatlsB «r Bretter BBsva. 



^f?H 



7868 IMPROPER ACTIVITIES IN THE LABOR FIEI.D 

Exhibit No. 28 



acfcsnivi kiad mitmm 

Local Union Ho. 3 



^ 



4?4 nimcU Str««t 

t«a Fr«t»«l«c», C«llf»niia «Br«h 14. ifM 

tho tm*tin<i E«i cbU*^ to ortor «t «in p.s. , Prt«i^»fi* :n.->cy prttl4in«. 

fiaaananoffi 

"•/•a tin 0«ki.«»»d ATM C«»incll, Glri Sooutj, r»qut«t5n(j cor.trlJwtlo* tcnartf 
flMKctiif U>«lr Girl Sc»«t Cjiap.' J»«c*lvod «nd fll»d. 

FrMi tho Sa» FmacUco l»h«T Council r«3*rdir«<] flM«ncl«I <nd aaral swp^ctt 
f*r tM Optical TachnicUnt, Local 18791, oft^avvd Ik t lociiowt aad strike o^alAtt 
r«Utl aittieal (iasl»r». R«cal*»d kaI fil»d. 

Fioa t^t Dl»»t»t«d AMricaa VatarcM ra^pMtting pvichato of fmtr tickat* t« 
tlMlr Maaertai o*r Show. Rafvlarly aeva^ tmd tacaMdad to parchaaa tickatt in tiM aaamt 
of 119.00. Carrlad. 

Frw tha San Ftanclace Guild for Ciipplad Childran, Inc., rafwaatlkf ^rciuM 
H Eattar Saala. Ragwlazlr aarvad aocS aacandad to imrciuaa taaia 1« tk« aiao«ait af SS.M 
Car r lad. 

Fro* gretHar CUatan R. Rllaan, «u8f>aiKia<i a a n i ii r, ra^atdiibf raiaatataiaMt. 
lafiilarlr a»vad a«id saca«iad Brotlkar M'.aofl aust pay fell rainatataawnt faaa. CarrtwI. 

Fran Bratkar Ed^aceaiba racooaaiKlirtt UO-OC |>ald aM appllcatla* by Uarl 
SalMHM IM nfaowiad te hla ilnca ha rl^dtfally iMlod^a to tha UlMrara «litMi. RvfHiarty 
ww»4 Mid aa c a a dad to concur in racoMtaandatloii of Brathar fcH aceitea. Carrlad. 

Fraa Bratlbar Haarna racoMMRdiA) Brathar N. K. Faatar ba partaittad ta imy 4«M 
•) tt.OO par aaath ainca Ka it a fiead vlctia in Pam»»r»9od. ftafolarly aavad Mti iimrt* 
to 9«nilt BroUOT raatar U ^ay d«aa at $2.00 par M«th far t)ia first qvartar. (^niai. 

D»«tar*a e«rtifleata fraa Brathar R. R. Perth, aha )»• navat had aaf *•*• itm 
Um •»•« tt«Milaf P«M and i*a vtll iMt ba abla ta ratvni ta mrk. Ra^kitarly aavwl utt 
mmmtat %• paat Bri»t}iar fxHn • witMrmti eard ami ta rafvnd a»n«y peM l» a iv m t* 
fw Ub *hm. CMrt«4. 



IMPROPER ACTIVITIES IN THE LABOR FIET^D 7869 

Fro« arethtr Vtn )»lnkit vtcommi^iini) Brother .'acV ~. PJct v» tlUoin^ :.o ,->»y 
tf«*« for th« flrtt c?ij»rt9t «t 11. CC p«r »o«th i)ri-.« ho U » f.o,--,' v', nlR, ^tyuUrljr 
■Or*d and »«cot*d«d to concur In '■•co«*m.,v > .'jn ^L'i'r\*. C»rrlf»i. 

Frwn Bro'vh»r Lii*i»ne« >,»-.3a<»*. ■< '.sf««»r »:« «r.cwTi t» p»v <!«■• 

• t th* r»t« of S2.CX) i.>«r atnth r'." » U , «';:-.oo; , .f'.«- J-i:o»i-!rvj Mi 

ttrrtcw i»ith<fii»»! card. r?«t<v,l i- ; ■, »ov«j .'j «•— ,-, • . , >«»» >vU t i on of 

•r«th«r U«rr«it«. OitrUd. 

Froa liothUT B«rr rtco«fc*«ftiir>9 Sr:>' < »■ . : '» « ■ • ?. -'•«; du»« 

fro« th« Goo-d 'ji«(vi' i i:;*; • .•- irj. 'to,j j . ... « -.■; i»;i«<i#(i 

te concur In T^cpmmi--^ - . " 

R«5!ii»rlv »!Ov«<3 »i»d s»co?Hl»d . .• ; '.«J «t 

COtt to tht t^icn. It J» h«t»'i r«, fUj •,«^^ .-! • ' . .'.^ «'^:! -Ji-s ' .- . J.H.QO. 

Carrlod. (•en«y to b» r«app; 1»:J trxJ atabsr : ' . v,- i i .i . -: 

|l«9visrlr »»o»»cl *i»cl »9cond»o ' </? tiJ t'»-i , -*<) •* 

of April 7, 19!>&. Carii»<). 

In r»9«xd to t^* ?l»r for 0#y«lss«*wt Corners 'Isn fo"- 'a» ,-!:« ;..:•-«•.' C •/••>•>« r«tlv« 
Aptt. In San Kranitsco, ti* 5«ic:«t«.> s«4 U;tiu'*«^ -.; .. >■.» I'l c.r.-«riJ>g 

My iiailUr plant In otbor cit!»a tnd iuch oih«r d«t» *» ho .^ . - -«.* r^i^i^!-*^ tSS» 
Mtttr and rauoit hack at a latar dtts. 

It oaa r«9ularlr aoiro^i arvi »tc^^dKJ tha E»«ayiiy« Cfflc«rf &« iKjtftstisd t« t«k« 
car* of aU Iho logal, actuarial, printing ar\i otlier ntstwts 1r,cvrr*<< !<i c>nfl*ctt<>»i *lt* 
t)i« prot>*a*d poniton plsn froa tha dafa.taa furxi. Carr!»<i. 

It waa r«9ularly awvad and aacondad tha Exacutlva Offl»ari t« insitructad to »«n4 
MI^Im of thoia raiolutlona to t>a actod upon at tha naxt Convontion that ara of tnt«r««t 
t« L«c«l M*. 3 to all doio^ata* to tha CoAvantion. Carrlod. 

Thtra boing »• f'.trthar bu«U««a to (.oom fe«fora tha Msatin) it adjournal at 9i30 | 

Rtapoctfully ai«teitt«4 

C. F. il«th«w« 
Sacs»TdlR9 Sacratary 



7870 IMPROPER ACTIVITIES IN THE LABOR FIELD 

from Brothtr Doran rtcowMndiim $47. &0 paid en application by Alfred J. 
R&9«rt b« rafundad. Ra^ularly Movtd and «acoiid*d to concur in r«cn— iwdatlwi of 

irothar Dora*. Carried. 



IMPROPER ACTIVITIES IN THE LABOR FIEI^D 
Exhibit No. 37 



7871 



1 -n 



t= 2 



i 




8 







1 


C5 




^ 




^ 




1-4 




« 




1 


1? 




|2 


5 



7872 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 38 



6 

z 
z 
o 

z 

5! 

U 

z o < 

5 

z 



If 

i 



3 



^ Q u 

u. u 5 



< 

1. 






-1 



IS 





I 



^llggi 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7873 

Exhibit No. 39 



^/^)^^^Mr^^ 



Natinnal Hank ol Nev«»«» 



80* AN/« 




7874 IMPROPER ACTIVITIES IN THE LABO.R FIELD 

Exhibit No. 40 



U« VMAt MAN04 No 1 1 
^0« OEIKXIIT ONkT 

.n^UNOERBIRD HOTaOO, 




^:^m^-^ 



■:^7->^ 



IMPROPER ACTIVITIES IN THE LABOR FIE'LD 7875 

Exhibit No. 41 




tKBi«0(,cu,LCO. 



thund 



"■'* 









7876 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 42 




IMPROPER ACTIVITIES IN THE LABOR FIE1.D 7877 

Exhibit No. 43 



';>^^'y/i^^t.^5^i^i^^^ 




21243 O— 58— pt. 19 25 



7878 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 44 

--L. , , 11 J^.J.. i .... 




-^f^..^.U^..,-Uc_ 



I ' : ! 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7879 

EXHiniT No. 45 




7880 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 46 




IMPROPER ACTIVITIES IN THE LABOR FIEI.D 7881 

Exhibit No. 47 

Expenses in connection with investigation and work 
connected with Anti-forces as authorized by the Union. Entertain- 
ment, dinners and hotel expenses spent on legislative committees, 
opposing legislation that had been fostered by groups within this 
Union, The following was spent at Sacramento: 

January, February and April 1955 $1,381.00 

At Salt Lake Qty for February and March 1955 860. 00 

At Reno for April and May 522.00 

Total $2,763.00 

Spent the above and received reimbursement in 
total. 



c^If 





7882 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 48 







fi^/^^4^^^^^-*Hi4L 



IMPROPER ACTIVITIES IN THE LABOR FIE'LD 7883 

Exhibit No. 49 




^.f '■ «llr10THl4^< 



^ ■ 3 



jtajtti BANI t rKl«T CO. 

* K)t 0t>O»T ONU 

UN GAKFf CO. 







7884 



IMPROPER ACTIVITIES IN THE LABOR FIELD 




IMPROPER ACTIVITIES IN THE LABOR FIEI.D 7885 

ExHiHir No. 50 




7886 IMPROPER ACTIVITIES IN THE LABOR FIELD 




IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 51 



7887 




7888 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



Exhibit No. 52 



«« 



UJ 



♦ 






i 






IMPROPER ACTIVITIES IN THE LABOR FIEl^D 
Exhibit No. 53 



7889 



X 



a 



o 
m 









:=«/ 



7890 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 54 



J 



TiamMCT * oi»ou»«i 



Nirw Yow« Ur« Insuwawck Co»«mHY 

»\ MAOlSOH AVCNUK 
wew yOWK SO. ^ -* 



A\i«uit 9, 1957 



Mr, f . B. VandinriuHic 
t»«M««S7> l^^rd of TruttMi 
Qpmtlnt »!«ln««r« Trutt fun<S 
iMltti Mki 1i*lfar« n«n 

Sm rrwnoisdo 3, California 



I>«»r Mr. V«ndi«wartc! 



Ttm following Inforsxatlon is furrdsh^d in r«»p«n«« 
to youp r«qu«it of July 24, 1957: 

■«lont Paid on Q»80S> - 



yalicy Yaar C. W. 3wn«y D. A. CaHM>ror 

12 A/^ *o lA/5^ 12,948.42 $2,9^8.42 

xh/y*' to iA/55 871,32 871.33 

1/1/55 to 1/1/56 922,44 922.44 

l/^y66 to 7/1/57 2.346. y) ♦ • 2,346.^0 

$7,088.68 $7,088.69 

* Bttfejaot to yvar-^nd adjustaant of coaalsslocui. Fisurct do 
aot la«liid« «ny ooaadsslorui for the 4/1/^7 prMHoa quarter 
for tha OCD oovtrag* (not moelved •• 7«t) . Also do«i not 
incluia 10/1/56 sale which waa bJllad and paid on 6/5/57. 

1/57 hai 



mt to D. A. CaaMiron Ccmdaalon Agr««Bant 7/1 
not yat baan ratumed to us. 

CoMdatlona Paid on 0-1093 - 

Policy Ytar C. W. Siiaanay 



4 A/53 to 4/1/54 $ 7,831.53 

4/1 AM to 4/1/55 2.300.94 

"^Ml *o yi/56 



$31,13^.86 

tw i aiM iy la ttia sola brokar of raoov4. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7891 

Exhibit No. 56 



» 

ElectioB of Genera] Ofieen 

JULY, 1956 
OFnOAL TALLY SHBFT //<y^^</»~ Oh <^ 

of Local No. 1 

City ^-. 3»° 'r»a>?l»co . . sute .._CiU.iforol« 

BacordJDf-CormpoDdiDC Secretaries will report on this «heet the number of votea east far Mdi 
" t«i, aa provided for in Article IV, Sections 3, 4 and 5 of the Conatjtution. 

FIIIIBEB OF >OTES CAST fOB 
^— VM. C MAlXtNEY. fw Cxr^ IVnlilw '7J.92'' 

^^ ■■ O. mm. tm Cwir.1 IV.U — . -/ i L X 

W ILUAMJl WPJW. I, Fh^ C,.^ Vi ^ IViiM^ / j'lT 3'^ 

ANTON J. IWHAHW. fw S«Md ComI Vis, r iffi i / ^ F.Z 9 

fomn I. MdaowAU). <«, Tfcw c» »^ vi., pw.o^. yj/y^i^ 

loscra J. DBUWEY, f» r«»tt c«»w.i vfa« pr» ui>.< y/' ^jfJ 



r»AriK p. amvi».<iE. f«. fi*i» c«Mnd vim pmMm 



JoV 



■f DAIX 1. BUBCHETT. t m^ FtfA Cen...! VW. rr»fal>»l ^ i V /-<. 

V ICTO* g . SWAWaOW. For Siitk C«Mral Vl«i PnaMot // />3 

WIUJAM J. gTt-HB . fw Se*«Mk CMMnl Vta. IV«.i,.t / .^ If^i 

JAt-K MrDOWAUD. (.^ rj«i. G^Mnl VW. rv>.M»i '^C/f^j 

ciiABmrMJsnA. (« "•to* c— r^ vi~ p~u-« /< -^-^j 

- BALPII •. BBONM^. Car T,a* Ci»«] Vie. r< iiiii .1 3 F / 

HOWLAND C. BILU tm TMk C«>.rml Vk. P< ill it r ^^.if'j^ 

_^ i. C. Tt«WEK. f» Tm * <>m m^ Vto. riiiHwl r^^^^ /(^^/^ 

^ CHAKLES B. CBAMIJfVC, fv C».rd S »h « t -TV»»» j .» '^^j^t^ / j 7 C^ 

— L E. FjGA)», fi» C«.r^ Ba«>J of TnMtMt - ^* ^ /^- l/'Y 5 

HITTTFJI P. WTIABTON. (<» CrarrmI B««^ «< Tt».«i.l ^^^ ^' / 

"■EWEU. J. CAKMAfl. f»CMMl Bo«f^ W Tr»w— -^-^ ^^L ^ ' 

MICHAEL r. C OWWM. f., C^iw l B~»< W Tr» w... ^flE^ -^ ' ^ 

V. u uixEr^^a^^Mni^B*^^ *fL^':^||T!' *'*f /*dl'7 7' ^ 

-y- VM. A. O^XWNEJl. r«- l.««.~l BouJ •! TraMn* . ^ t fl'Mf ' ' 

J- BAY W. TIKXEB. to. C^-r.^1 Ro.rJ ./ TraMM / L C (' V 

Mamberahip votri at me»tin» of Local Union No 3 held on J?!^_____* 



•< 



J*l/ 



-. Record J njr-CorreapondinxSecretarr, 

Street Addreaa_ _ ''7'' ValwcU gtnwt 

Citr and SUte ^^ Pr«claeo 3. Clifoitil. 



IMi dMal Bua* ba ratumed to the International Cnlon of Operating Enxioeara, 1008 K Straat, M. W., 
WHMvttaa 1. D. C in the envelope »ent each Ixjcal for this purpose by the fifteenth of Aomt, ItM, 
mi aart ba ricaad by the Racordinr-Corresponding SecreUry for the Local Union forwarrjinf aasM. 



7892 IMPROPER ACTIVITIES IN THE LABOR FIELD 



- 2 - 
Mr. F. 1. Vand«w«rk 
Operating Engineer* Trust Fund 
Health and Welfare Plan August 9, 1957 



CowalBeiona are vested - 

(a) Under Q-fe05, brokers C. W. Sweeney and 
Donald A. Cameron participate. 

(b) Under 0-1093, C. W. Sweeney i3 soJe broker. 



Coanlsslons are vested for a 10-year period from the effective 
date of sale or the termination of the group contract, wnlchever 
18 earlier. 



If I can be of any further asalaiance, I shall be glad 
to oblige. 



Sincerely, 



Assistant vice President 



IMPROPER ACTIVITIES IN THE LABOR FIEI,D 7893 

Exhibit No. HGA 
tNTERNATIONAL UNION OF OPERATING EIKJHEEMS 




Elertfon of G««ierml Offiecn 
JULY, 1956 

OmOAL TALLY SHEET yZ/y/VAf^ 7^^ 

of Local No. i. 

City _ 3«> f>*ncl»eo sUto _ CftUf otii1§ 

R«eor<linj-CorrMponding S«r«t»ri<!« will report on thU iheet the nomber of Tat« oHt for mA 
W.t. .. providod for in Article IV , Sec' ions 3. 4 and 6 of the Confutation. 

NtmM Of VOTES CAST rom 



wniiAtt M. WKWH, r« rv« c«.»i vu, r.i<ii... 



Z// /^;^ 



/? //^ ^ 



•ALra •. BBOIXSION. I<r T<Mk C<Mnl Vk. I 



■OVLAND C. Bill, r<r TcMk C»»ml Vka I 



f,^ 7 J. c -nmntM. tm tm» c »»w vb. p »ii n«i /^J ^T 

' »w /T^ 5/ 



/?7rT' 



C— ^IB^WT,.^ j'^^ 



MICHAEL r. CONNORS, far Cm.^\ B^-rd o( T™«,-. -^ -^7" 



y^:? 



VM. A. O'COfmELL, lar C mihI Bm>4 af TVii.m. 



■AY W. TtKXm. r«r Cfxnl Bo»rf ./ TraMM /7y^Y 

•t — ftint of Local Union No 3 ^ hekl on . 1^ ^ 

..^ 1M« 



Recording-CorrtipondiBi S«a«tarr, Local No 2__ 

.k7«t ya;«ncl§ 8tr»«t 

Svi PraDclaeo 3,^ CaJLiromU 



l**i *Ht mart b* rctiiTBwl to the lnt«rn»Uoa«l Union of OperaUng Eo«in«er», 1003 K Stwet, N. W, 
■MwtM 1. D. C. In the envelope aent e«:h Local for thit purpow by the flfteenth of Aujurt, 1»S«, 
I "Bit ba dcBad by tbe R«ordln«-CorT«aponding Secretary for the Local Union forwarding aaaa. 



21243 ()— 58--i.t. 19- 



7894 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 57 




IMPROPER ACTIVITIES IN THE LABOR FIE-LD 
Exhibit No. 58 



7895 




-J ^~i ' 



94 




V 



Z 
< 

►^ ^^ 

CD o <E 

H 



/K?^p9^^^y^y yp 



// ^i*^it»t*±Niirr. 






p*v TO TKc ni»ot» or 
iJj Ciitik of Antfvirtt |23 

UlffOflAk CO. LQ. 









ii 



:?J: 






1 ri* 



7896 



IMPROPER ACTIVITIES IN THE LABOR FIELD 




IMPROPER ACTIVITIES IN THE LABOR FIEl^D 



7897 



Exhibit No. 59 




7898 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



ll « 




0V 


V . 




«' 


If 1 

m ^ 1 

d '^ ' 

2 O - 




O z ^ 

5 UJ 5 




-OCAL Ul 

PERATING 

STREET 

RANClSCO. 


i. 


II •« o < ^ 




1 £s°il 


V 


y UJ o z !3 




1 z o < 




ENGI 
ALUN 

474 




I O ^ 




1 z o . 




ERATI 

ERNAT 


1 


O. 1- 


<^ 


O z 


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1 

1 
1 


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• 


cc 


1 


m eg 


...- F 


.S,. 




:'^:^. 



IMPROPER ACTIVITIES IN THE LABOR FIELD 



7899 



Exhibit No. 60 










7900 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 61 




INTERNATIONAL UNION OF OPERATING ENGINEERS 



*ri»iLiATto wi 



AMERICAN rCDCNATION Of i 



TELEfHONS NATIONAL »2*$ 
CARPENTERS' KDG. t003 < ST. N.W 

WASHINGTON, D. C 



OffiCI Of TMI SENMAL RESIDENT 



SaptOTber IS, 19A7. 



Mr. C. f. Mathevs, 
R«e. S»c. Local #3, 
RooB AOi, 1095 >terket St., 
San Frwacisco 3> Celif. 

Dear Sir and Brother: 



I aa in receipt of a coamRinicatlon froa our auditor 
who exaolnas the reports of Local IJaion #3, in irtiloh attention is 
called to tha fact that yoa boufh^^ a launch for 110,000. 

I thou^t it WHS distinctly uafiarstood by you as r0pr»- 
ftentlng Local Union #3 that you would conpRinlcate with this office to 
get permission to make evrpencitures of this kind. Ag this is a 
violation of this unf'ersto.nding I vish you would communicate with 
this office and explain this expenditure. 

With kindest reg'irds, I am 



Fr^item/'Ily yours, 

7/ f- 

WM. E. flALO.N'EY 
GENERAL PRESIDHMT. 



cl U 



'^ 



V ) 



VSIteJl 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7901 

EXHIBIT No. 63 

To the Trustees of Local Union No. 3. 

The follov/ing expenditureG made in in conpliince with instructions 
of the membership of Local Union No. 3 to find the source of the letters 
that have been circulated to members and others v.hitch are of defaaj 
itory to the Officers of Loc^i Union No. 3. 

Jan. 28. 1955 

Stockton;Calif . 
Dinner and Entertainment $ 288.50 

Hotel St9Ck:ton $ 45.50 

Car repair v 175.. *5 :i;508.95 

Sacramento. Calif. 
Jan. 30. 1955 

Banquet Hotel Senator $397.50 

Car rental .^ 85.0.' 

Hotel nnd me-ls y 58.00 ^540. 50 

Fresno. Calif, 
^eb.l-^. and 13.1955 
Dinner and Entertainment ^203.65 

Hall rent .; 25.00 

Hotel and meals $83.50 s?286.65 



7902 IMPROPER ACTIVITIES IN THE LABOR FIELD 

March. 19 nd 20.1955 

Salt Lake City. Utah. 
Dinner -^.nd Entertaimnent $ 520.00 

Hotel and meals * 55.75 

Transportation ^ 85,50 ^659. 05 

Provo .Utah 
I':ntertaimiient ad dinner $345.00 

Hall rent * 25.00 $370.00 

Redding. Calif. 
April. 16 and 17. 1955 

Dinner and entertainment §104.00 

Hotel $ 34.85 

Parking $ 2.00 

Garage and motor tune-up $ 7«50 $148.25 

Total Expenditures $2513.45 



/ 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7903 

Exhibit No. 64 



►o t,r.'- orJ'T of 

"ict "Irect^r of Tnt' 



/ xt;><*.v-x- 



r 



^ 



7904 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 65 










■^ z 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7905 

Exhibit No. t)5A 



<X5 




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7906 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 65B 



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ExTiiuiT No. 66 



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7910 IMPROPER ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 69 




IMPROPER ACTIVITIES IN THE LABOR FIELD 
Exhibit No. 70 



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7912 IMPROPEIR ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 71 






Nov8mb«r 15, 1956 

TO THE EXECUTIVE BOARD OF LOCAL UNION NO. 3 

On February 5th, 1955 Local Union No. 3 bought a piece 
of land in San Mateo County thru the CaUforxda Pacific Title Company 
for approximately Eleven Thousand One Hundred and Fifteen Dollars 
and Twenty>cents ($11, 115. 20). At that time it was the intention of 
the Executive Board to build a branch office on this land. However, 
shortly after the pr<^«rty was purchased it was decided that it would 
cost a great deal more than &e original price, to fill the land with 
dirt in order to make it suitable to build on. Since the Executive 
Board felt that it might have been an unwise recommendation on my 
part to bay this pr^erty, and that the Union should not build on the 
said property, I now offer to buy the property myself for exactly the 
same pric* as mdiat the Union paid, plus taxes; a total of Eleven 
Thousand Three Hundred and Eighteen Dollars and Six-cents ($11. 318. 06) 
with the understanding that I will keep the said property for not less than 
two years and should the Union wish to buy it back for the same purpose 
it was originally purchased, I will sell it back to the Union for exactly 
the same price I paid, plus taxes, and 4% interest on the money I invest. 

Fraternally, 
Victor 5. Swans on 
VSS;et 



IMPROPER ACTIVITIES IN THE LABOR FIELD 7913 

Exhibit No. 72 




7914 IMPROPEIR ACTIVITIES IN THE LABOR FIELD 

Exhibit No. 73 






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7916 IMPROPER ACTIVITIES IN THE LABOR FIELD 

EXHIBIT No. 75A 



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7918 IMPROPER ACTIVITIES IN THE LABOR FIELD 

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IMPROPER ACTIVITIES IN THE LABOR FIELD 



7919 



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7920 IMPROPER ACTIVITIES tn THE LABOR FIELD 

Exhibit No. 76 




IMPROPER ACTIVITIES IN THE LABOR FIELD 



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